politics, where they believe nothing, you're ahead of the game. >> i understand, but we're in the fact business. so we are today bringing to you the people who did the actual voter fraud study. tune in for that. >> a lot of news for you. let's get right to it. the president-elect is assembling a government that's going to make america great again. >> we'll cancel the job killing restrictio restrictions. >> 35% tariffs would be profoundly economically damaging. >> millions of people did not vote illegally. >> in every congressional district in america, people do vote illegally. >> out-and-out lies being promoted by the president-elect. >> this is the deadliest building fire in the u.s. in more than a decade. >> it's just tragedy. >> do i take blame or responsibility for this? >> this is "new day" with chris cuomo and alisyn camerota.
>> some hard days ahead out there in oakland as they make sense of that tragedy. good morning. welcome to you and your new day. president-elect donald trump is taking his show back on the road. the thank you tour is hitting three states this week beginning with a rally tonight in north carolina. meantime, there's anticipation building for trump's final cabinet picks. >> so critics are raising questions about dr. ben carson's qualifications to be housing secretary. this as mr. trump's national security adviser, general michael flynn, and his son are under fire for peddling conspiracy theories. we are just 45 days away from inauguration day, so let's begin with cnn's jessica schneider. she's live outside trump tower in new york. what's the latest, jessica? >> reporter: well, alisyn, it will be down to business here at trump tower before donald trump plays to those crowds at the second stop in his so-called thank you tour. it will be in fayetteville, north carolina, tonight at 7:00 p.m. top adviser kellyanne conway telling us it is exactly these rallies and playing to those crowds that gives the
president-elect his oxygen. donald trump continuing his victory lap by visiting three more states this week. the president-elect heading to north carolina today and on thursday he'll travel to iowa, michigan on friday. trump's team says he'll formally announce another cabinet appointment tonight. touting the credentials of his defense secretary pick, retired marine general james mattis. trump also tapping ben carson to be housing secretary. trump describes carson as brilliant, declaring he's, quote, passionate about strengthening communities and families within those communities. some are calling carson's qualifications into question. last month a key confidant of carson's said running an agency isn't his strength.
democrats now arguing he's woefully unqualified. meanwhile, trump national security aid general michael flynn coming under fire. flynn's son continuing to push a baseless conspiracy theory that led a man to fire an assault weapon inside a washington pizza shop. the white house weighing in. >> we all hold a responsibility regardless of whether or not we are planning to serve in a government position or if one of our family members is planning to serve in a government position that we shouldn't be propagating false things that could inspire violence. >> reporter: the white house also responding to trump's controversial phone call with taiwan's president, stressing the u.s.'s commitment to the one-china policy. >> some of the progress we have made in our relationship with china could be undermined by this issue flaring up. >> reporter: several notable nan nanls -- names will be here today at trump tower, including
rex tillerson. also, the d.c. mayor, as well as the former secretary of state harry kissinger, just back from a visit to china. many are still buzzing about al gore's appearance here yesterday. al gore saying, without much more, that it was a lengthy and interesting discussion. chris? >> controversy there. it was supposed to be with ivanka, which raised questions about whether or not the daughter was going to be involved with the government. then they made. a broader meeting. enough of politics. let's get down to policy and how your life will or will not change under president trump. joining us now is a member of donald trump's presidential transition team. good to see you. >> great to be here, chris. good morning. >> good morning to you. let's talk about in a telescoped way what the carrier deal means for job savings policy. give me why you think it's a good deal in the face of
concerns that while it was a good headline maker for you in the administration, it is a dangerous precedent going forward for basically paying off a company to stay. >> well, you see, we don't really see it as pay manager off a company to stay. i think what we're going to try to do in the administration is by lowering taxes, chris, and reducing some of the regulatory environment in the country, the cost of doing business in the united states will be a lot cheaper. moreover, if we can make the trade deals a little more fair so there's not the asymmetry you're now seeing, where goods and services can flow freely into the united states, but our goods and services are embargoed elsewhere, that combination of things will mean going forward that ceos and cfos all over the country can look at the capital allocation models that they're using and say that it's better to deploy that capital in the united states. so what i would say to your viewers is just remember that
taxes are a price for services. so we've got to get the quality and the services in line with the taxes. our corporate tax rates, chris, are the highest in the industrialized world. >> only the nominal -- only the notional rates. the practical rate winds up being well under 20%. even though there's this notional rate of what they're going to pay, 30%, 40%, nobody pays that. so there's a little bit of a deceptiveness. >> let me push back a little bit on that. >> please. >> that may be true for the most sophisticated companies that have the most sophisticated accountants, but the mom and pop businesses of the united states and the small llcs, they do get hammered on these taxes. i think we would both agree that simplifying the tax code, making it easier to understand for the average american, businesses large and small, is a good thing for the united states and will create more business growth and more activity. >> that's an interesting concept for you guys. are you willing to free up small businesses, the mom and pops as you call them, from their
current tax status, which is they get taxed as individuals. llcs, those are flow-through entities. most of them aren't being corporations that deal with it that way. for a long time, small businesses have wanted that. would a trump administration create a tax bracket that gives protection to small businesses so they don't get taxed as ordinary individuals? >> yes. i mean, we're going to roll that proposal out. what you'll see is there's cohesion between the corporate income tax and the personal income tax so it'll be very easy for people to understand. and we hope in certain areas it will be revenue neutral, particularly on the high end. >> we ran a little away from the carrier deal. let me get you back there for a second. that deal, it looked good. saving families -- nobody should be arguing with that. it's that carrier is still going to sweat a lot of jobs across the border. in that we see the reality.
you can't save enough american jobs by just giving tax inducements. what you created is now the potential for the next carrier, the companies who will come forward and say i'm going to lose jobs, where are my inducements? that's why government usually stays out of the business of picking winners and losers. so why -- the carrier deal may have made sense politically, but what about from a policy standpoint? >> well, listen, what i would say about that is that we want to blanket this. so by reducing the cost of doing business across the united states through a combination of tax, regulation, even the repatriation of the treaties, reconciling the treaties, we can come up with an incentive plan to bring that capital back into the united states and incentivize those corporations to put it into human capital, training, manufacturing. so there's no way that you can tell me that there isn't a
cocktail of things that we can put together that could make the manufacturing profile for the united states more attractive and bring more americans back to work. now, the -- >> that's not what i'm saying. i'm just talking about these people here at carrier. i get your basket, your cocktail argument. we'll look for what you go forward with, what the details are in the regulations, and then we'll be able to make more sense of it. on this, sarah palin called it crony capitalism. you got mccarthy and ryan lining up and saying we're not going to put a tariff on companies that send jobs across the border. they're not seeing these moves that you're seeing as strength and projecting a good image as things that are viable for business. >> well, i think it's a little bit early. i think people are jumping the gun on that. let's focus specifically on the carrier deal. the $7 million paid out over ten years, chris, it's working out to about $700, $800 per worker. if you think about all the positive externalities of those
workers staying in indiana, state income tax, their lack of dependency from the government, the flow through to the shopping malls and the local businesses in the community, if you did a cost-benefit analysis on that, as i know it was done, you would see that it's a very positive deal all in for everybody. >> except that it's a gift to a company that winds up giving a lot of other companies the chance to ask for the same thing. >> exactly right. so if you do a case-by-case cost-benefit analysis, my guess is you can come up with strategies from the government working in partnership with private enterprise to make these deals work for the american people. just let me finish this point. if you looked at the situation where you're losing those jobs and all those people have to go on a form of governmental dependency, unemployment insurance, it wreaks havoc not only on the family and the self-esteem of the people that are at work, but it puts another burden on the taxpayers.
so you have to remember, in the united states we both agree on this, we want to have a social safety net to protect people. it's better for the government to work in partnership with american businesses to prevent that from happening, chris. >> and i'm just saying that short term it looks good. nobody wants to see families out around the holiday. but carrier is sweating more jobs than they're keeping. that's the truth. now other companies may ask for the same. anthony, i appreciate you coming on to lay out the policy. let's keep doing it going forward. >> okay. you got it. i think it's early. let's see how the plans unfold. >> he's not even in office yet. it's absolutely early. i'll talk to you soon. be well. alisyn? a month after election day, north carolinians finally know who their next governor will be. incumbent pat mccrory announcing in a video message that he is conceding the race to attorney general roy cooper. mccrory's tenure was marred by defiantly standing by a controversial ban on transgender people using the bathroom of
their choice. the bill cost the state millions as major events pulled their businesses to boycott. there's just a gruesome scene inside that oakland warehouse. the count is 36 people lost. it's certainly the city's worst fire in more than a century. firefighters are really having to go shovel by shovel to look for victims because of the intensity of the heat and now all the debris. cnn's stephanie elam is live there. the whole community has come together in this state of anguish, waiting for more information. >> reporter: that is definitely the case, chris. of the 36 people that lost their lives that we know of so far, 32 of them have been identified either positively or tentatively. they said they don't expect anymore large numbers of people who lost their lives in this fire. they're working their way through there. what we also know is people who lived inside there knew it may have had some safety concerns. we also know the man who was the leaseholder was often allowing these kind of parties thrown in the unit, even though the city
says that they didn't have permits to throw parties inside this warehouse. our affiliate here in the bay area, kgo, caught up with him. this is what he had to say. >> do you have anything to say to families of the victims? people are obviously wondering if you have anything to say to them. >> they're my children. they're my friends, my family, my loves, my future. that's all i have to say. >> reporter: and a lot of people here are preparing for the rain. investigative officials saying they're going to work through this slowly, methodically, despite the fact the rain is coming. >> i know you've told us just what painstaking and emotional work that is. thank you for the update. we'll check back with you. meanwhile, another story that we need to update you on. a georgia dad convicted in the death of his son. he has been sentenced to life in prison without the possibility of parole. justin ross harris, you'll
remember, left his 22-month-old son cooper in a hot car back in 2014 while he went to work for seven hours. the defense argued the 35-year-old accidently left his son in the car because his morning raw teen had changed. harris plans to appeal the verdict. president-elect donald trump claims there were millions of illegal votes cast during the election. that's just not true. he says there are studies to pr prove it. guess what, we have the people behind the studies he's talking about, next.
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okay. update now on election fraud and whether it existed. lawyers for donald trump are contradicting mr. trump's own claims about voter fraud in a court filing. this was a challenge of theirs to the recount efforts of jill stein. mr. trump's lawyers wrote, quote, all available evidence suggests that the 2016 general election was not tainted by fraud or mistake. of course, just last monday, mr. trump claimed that millions of people voted illegally. joining us now with the truth
is -- this is a debate to discuss -- jesse richmond, an associate professor of political science at old dominion university. his study is the one often cited as evidence of widespread illegal voting. and michael herron, a visiting scholar and visiting professor at dartmouth college. he just published a study on the 2016 election. gentlemen, thank you so much for being here. i can't imagine two better guests. professor, let me start with you. you and your colleagues did a fairly exhaustive study on the possibility of voter fraud in this presidential race. let me pull up for everyone what you looked at. you looked at the possibility of noncitizens casting votes, individuals casting votes in the names of dead people, fraud carried out by the election officials, and fraud associated with vote tabulating and electronic voting machines in particular. professor, what did you find? >> sure. what we found -- and when i say
we, by the way, i work with david cottrell and sean west at dartmouth. we looked at these various sources you just described. we looked for the sort of fraud that was systematic and major across the united states. we didn't find any evidence consistent with the sort of claims about voter fraud that we heard made during the presidential campaign. >> okay. so -- and i should let people know there's a four-second delay because you're coming to us from overseas. so everybody please bear with us. when you look at the claims of mr. trump and others, that 3 million illegal people voted, what are the real numbers from your study? >> that's a great question. we didn't look at that particular number, the 3 million number you're citing. what we looked for was patterns in the trump vote. in particular, patterns in differences between trump's vote and romney's vote from 2012.
we looked for differences in those -- patterns in those differences that seemed consistent with sources of voter fraud, like you mentioned noncitizens. we didn't find any of those patterns. that doesn't mean that there wasn't fraud now and then. our research is designed to look at systematic fraud, to look at the very broad claims made about voter fraud in the 2016 presidential election. so i can't give you an exact number, but i can tell you that if you think about the implications of those really strong claims, we just didn't find any evidence consistent with them. >> okay. thank you. it's very good to hear right from the source that you didn't find any evidence of that. professor richmond, i want to go to you because it is your 2014 study that is often cited by people who believe there is widespread voter fraud. so can you share with us what
you found and whether or not your conclusion was that millions of people could have voted illegally. >> so our study was looking at the 2008 election. we estimated a wide range of possible levels of noncitizen participation based on survey responses from individuals who asserted they were noncitizens and either said they voted or cast validated votes. if one cherry picks from the top of that range, one can come up with estimates that are quite high. however, my impression from subsequent work is that it's probably not at the top end of that range. furthermore, if you extrapolate from our sort of center estimates, you do not get to the levels of fraud that were being -- that were asserted in some of those tweets. >> so basically, what you found in your study is that there was a range of possibility of illegal votes somewhere between
30,000, you found, and a million. you feel that people are taking the top number and extrapolating upward now with your data. >> yeah, i think the risk is that one takes one study based on a prior year and extrapolates too far from that. i think our study is absolutely right in the basic finding, which is that some noncitizens do participate in u.s. elections. what the specific number is, that's something we're still working in a variety of directions. i welcome the study you were just talking about with professor herron. a variety of directions to try to identify where in that broad range really is this phenomenon. i think that's important work. >> it is important work. it's very important work. we want to get the word out there. but you know there's been criticism of your study. i'll just read a little bit of it and get you to respond. what the author has failed to consider is measurement was
responsible. we found there were essentially zero noncitizens who voted in recent elections. that was a different political scientist. so what's your response to the people who say that they could not -- that your findings didn't wash once they tried to re-create that? >> well, i appreciate that study. i've been sharing that study with other people as well as my response to it. i think that there is evidence of noncitizen participation in u.s. elections, even if you take their results very seriously, even if you assume that they're completely right about the level of measurement error. they were focused on the issue of noncitizens misreporting that they were citizens. you still have evidence even with that assumption of noncitizen participation. >> okay. but just so we can make everybody understand at the end of this, the number is somewhere between zero and 30,000 people,
but it is not in the millions. you both feel comfortable with that. >> i think the probability that it's in the millions is quite low. i think that's quite implausible. certainly i would be astounded if the number is high enough to account for anything close to the margin with which trump is currently down in the nationwide popular vote. >> professors, thank you very much. nice to talk to both of you. thanks for sharing your studies with us. chris? all right. so on the policy side, donald trump came out of the box hot with his carrier deal. it's gotten a lot of criticism for basically bribing a company to stay. now there's a second part of that policy, which is what do you do to the companies that leave? he says a 35% tariff is the answer. can he do this? and would it be a good thing? we have a long-time friend and businessman with his take. and the best deals are on the best network. (both) yes! (vo) with no surprise overages, you can use your data worry free
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pushback. the idea of a 35% tariff on companies that ship jobs overseas may sound good to some of us but is not meeting with a lot of acceptance. we're going to talk about why. it's meant to give companies an incentive to keep jobs here, right. will it work, will it ever get passed. let's talk to a long-time friend of donald trump and the executive chairman of colony capital, also the chair of the presidential inaugural committee. good to have you here. >> thanks, chris. good to be with you. >> the tariff sounds good. yeah, yeah, they're going to move our jobs and hurt our workers, let's hurt them too. politically, it's getting pushback. one point of it is we don't pick winners and losers. we don't selectively pick which companies will benefit and not. the second one is they believe those tariffs will be passed back on to our consumers. what do you think about the tariff? >> look, obviously it's complicated. what we're getting is just the beginning of a notion from the president-elect. you have a congressional piece here that's very important.
he can impose tariffs without that under two or three emergency laws. whether he would do that or not is probably questionable. tariffs, if you go back through history and look at the beginning, the marshall plan, the complexity of these tariffs was really a foreign policy tool. it wasn't about jobs. so after world war i when the paris peace conference started, it was about trying to help and encourage europe along at the sake of germany. world war ii started. after world war ii, the devastation was all about the marshall plan and gap, which was subsidies to encourage europe and japan to be able to survive. it wasn't ever focused on what does it mean to american jobs. it's a bit like an aircraft carrier and imposing tariffs is something that hasn't been done in the last 15 or 20 years.
these multilateral trade institutions are a bad idea in this president-elect's mind. why? because you've now delegated the responsibility of 535 congressional people, the president of the united states, into a bureaucracy. that bureaucracy's interest is in propagating the bureaucracy. i think all these tariff discussions are like tiny little waves on an aircraft carrier. you have to adapt all of them. trying to find a center to stop currency manipulation. we're talking about china and major factors. so this issue of currency manipulation alongside tariffs is complicated. currency manipulation is just the central bank buying u.s. dollars and bonds. sometimes that's good, sometimes it's bad, sometimes it affects the currency up.
>> so how should we see what donald trump is saying? it doesn't seem nuanced at all. it seems he's saying i'm going to punish companies who move jobs overseas by putting a tax on whatever they sell back here. doesn't seem like it's part of any coordinated subtle negotiation. >> oh, i think it is. this is the parry and thrust at the beginning of a discussion. all these thunderstorms you're hearing are the preface to a serious conversation. i think what you see this president-elect saying is we're going to have serious conversations. what happened in this election was a recall. it wasn't that president obama was bad. it wasn't that the policies were bad. it wasn't that they failed tremendously. it was that america wanted something different. and something different is making everybody accountable. just drawing clear lines. so part of the clear lines are we're going to have an equal battlefield. >> just so you understand, just for the people watching, because this audience is very engaged. they've been following this whole thing. that all sounds very reasonable,
what you just said. donald trump has said none of that. he's said everything that president obama has ever touched has turned to dust and is terrible, none of his policies have been worth a damn, and he's now bluffing that this 35% tariff is just like what it's going to be, just like the wall, just like the other promises. so which is it? >> i think it's both. look -- >> both? >> yeah, absolutely. he can have an opinion -- the president-elect can have an opinion of whatever he thinks of previous environments. now on november 7th everybody had an opportunity to decide in november 9th, we now have a new president. we should all line up behind him. we should listen. we have a process of a congressional and judiciary implementation that balances it all. and we're judging all of these remarks before he has any power, before he's consulted congress based on little tidbits without any structure to them.
so i think we owe him to have an opportunity to wait. he's sending sound waves saying, yes, i'm going to be much stronger. >> so that's what we should hear. he says 35% tariff on these companies, but you're saying see it as a sound wave of him saying we're going to sit down and talk, something's going to change, don't hold him to the specifics just yet. >> i'm saying if it were me on the other side, i would say this man is going to do that. he's serious about imposing it, unless we respond. so what's responding? to china, it's not really currency manipulation today that's the problem. it was a problem a year ago. it isn't today. they've put currency controls, they've stopped the flow of funds. they're 500 billion down. what is it? it's intellectual property. it's shipping technology that they can buy free with no trademark protection or a u.s. company can send goods and have it manufacturing. it's just not fair. that part of it isn't fair.
so i think it's bringing everybody to the table. if we equalize and we're fair, everything will be fine. if not, believe me when i draw this line, i will draw the line, and i, the president of the united states, will have the power regardless of congress. he's going to utilize congress for sure. but it's clear the president has the power to impose these tariffs without congressional intervention. >> that gets into a very complex analysis. let's leave it there for now. good luck with the inauguration planning. still 40-something days out. as we get closer, please come back on and tell us what will all be down there. >> i'm a better party planner than a politician. >> appreciate you on both levels. quick programming note. vice president-elect mike pence will be live on "the lead." so a criminal investigation is under way into what caused that deadly warehouse fire in oakland. next, we talk to someone who tried to warn people that the ghost ship warehouse was scary.
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oakland city officials do not know what sparked the inferno at the ghost ship warehouse in oakland, california, that killed 36 people at a late-night party. joining us now is pete. he knew nine people in the fire as well as the couple who ran the artist's community there. good morning, pete. thank you for joining us. i know that this -- these past few days have been an ordeal for you. do you know the status of the people that you knew inside? >> no. you know, the people that i know that lived there all made it out safe.
the people that i was close to all made it out, thank god. but there's a lot of other people, and i have not gone through the lists and looked at photos. i've been kind of avoiding that. but i did go to the vigil last night and saw a lot of familiar faces and talked with a lot of people. >> pete, i know -- >> i know a couple of them. >> we're sorry for the entire community there. i know that you described what the ghost ship was like inside. i think that you called it beautiful but scary. what do you mean scary? what was it like in there? >> despite being a really big space, it was a -- it was full, very full. it felt claustrophobic in places, but it was a really beautiful gallery space with really interesting work everywhere, artwork everywhere. interesting things juxtaposed to
each other in really unusual ways and really made people think in every corner. >> we're looking at your pictures right now. i see what you mean. it is really beautiful, but there is an eerie quality to it in part because of the low lighting that went on in there. but i know that you were concerned about the crowding issue in there. yo you're friendly with the couple who run the ghost ship. did you share your concerns with them? >> yes, i did. they had asked me if i would move in several times. i needed to move. i was evicted through an owner move-in eviction last year. they offered me a place here. it was very, very difficult for me to find a place. finally, i found another place that was unsafe also, where i'm living now. but this was just too risky for me. it was too scary, mainly for fire and for lack of privacy also. so i didn't move in. >> so you always knew there was
a possibility that place was a fire hazard. >> yes, i did. when i first went in there. >> go ahead, pete. >> when i first went in there -- and the last time i mentioned it, there had been another fire previous to that. right away they just started telling me about that. so they knew also that it was scary, but i guess the steps just were not taken to make it -- to fix it. >> pete, why do you think that they didn't take those steps and didn't get the right permits for that place? >> i don't really know for sure, but i can only speculate. i speculate that people are desperate for housing, both for events and residences. when people get desperate, safety kind of drops off the list of priorities.
>> yeah. >> unfortunately. >> i know that you're friends with the couple. do you think that they deserve to face criminal charges? >> i'm really not in a position to say. i really would rather not -- there's enough people out there, you know, shouting their opinions about that. i don't feel the need to do that. i feel the need to address the underlying concerns of the lack of safe, affordable housing. >> yeah, and i know you've made the point there are lots of other places like this that you've seen in the san francisco area and around california. this obviously is a terrible, cautionary tale for everyone. pete, thank you very much for joining us with all of your thoughts. we're thinking about you and the community out there. >> thank you. >> let's get to chris. so there are protests planned today when richard spencer comes to speak at texas a&m university. spencer is a man who uses nazi era wording and imagery like he did at this washington, d.c.,
event. we showed you the video some time ago. so who invited this white nationalist to the school and why? cnn's gary tuckman has more. >> reporter: this is the man who invited white nationalist richard spencer to speak at texas a&m university. he knows it will be controversial. he knows most people don't want this event to take place. >> what do you think of richard spencer? >> i think he has some valid points. >> hail trump! hail our people! hail victory! >> reporter: the nazi era wording, the imagery at this gathering in washington, d.c., upsetting to so many. w wiggington says he doesn't agree with all of spencer's views, but he certainly does some of them. >> do you think this is a white nation? >> i think it was at one time. i think the reaction of trump being elected and the reaction that's going on with the alt-right being popular is a reaction to it declining being a white nation. >> reporter: he says he doesn't
like to label himself but seaus he is sympathetic to the point of view of the so-called alt-right, a relatively new term for what in the past were simply called white supremacists. >> why would i want to see america become less white? why would i want to be displaced and marginalized? only people with a mental illness want to be displaced and marginalized. >> here's the thing. you have this hang-up on the color of people's skin. what matters is the kind of people they are. so why does it matter the pigment of their skin? >> it's not just pigment. >> what is it? >> people's behavior, people's iq, people evolve over different times and different places. >> there are lots of white people with low iqs. there are lots of black people with high iqs. everyone is different. you're stereotyping. >> better the devil i know than the devil i don't. >> reporter: texas a&m does not want this event to happen and has rejected richard spencer' views but cannot ban the event
because it's a public university. a number of students have organized what is expected to be a large demonstration. they pledge to keep it peaceful. >> we have a responsibility to take measured action to counter white nationalism, white supremacy. >> yeah, i think there's going to be outside agitators, by all means. >> reporter: wiginton, who is a former a&m student, has said he wants to prevent the populations of white nations from becoming a homogenous muddle of sludge. he says he was misquoted but doesn't deny the point of the quote and says there is a way to make america more white. >> a ban on immigration if not a strict curb on immigration. i don't think that you can bring somalians into america and expect them to assimilate. it's a completely different culture. it just doesn't happen. >> but some somalians can. >> i would be very selective on that. i think we freely let too many of anybody into america. >> that's what prejudice is, that you're saying they should all not come.
there are bad people that absolutely should not be in this country from all nationalities, all creeds, all religions. but by saying that all somalis shouldn't come here, isn't that being a bigot? >> um -- sometimes maybe being a bigot is wise. >> reporter: gary tuckman, cnn, college station, texas. >> wow. that's hard to listen to. >> yep. part of the first amendment. i'd like to know a lot more about why the university's administration is having the man come to speak, what they think the benefit is to their students who will be exposed to this. but gary did a good job in helping you understand where this person's mind is. >> definitely. well, president-elect donald trump's children will reportedly be taking over his businesses. they will also somehow play a role in the transition to the oval office and maybe beyond. so what are the conflicts of interest here? we dig deeper with two reporters on the case, next. hashtag no sleep. hashtag mouthbreather. just put on a breathe right strip.
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it's time for cnn money now. alisyn kosik is in our money center with a look at the fresh record highs for the stock market. hi, alisyn. >> yes, the dow sitting at the highest level. we could see another new record at the open. we are seeing futures inching closer. stock markets in europe and asia rising as well. oil prices down slightly. and in its quest for world domination, amazon is taking on grocery stores and taking away the checkout lines. >> that is great. i thought you didn't have to pay for it. amazon sends you your tab. >> a different curve of consumer information that's needed.
>> all right. so president-elect donald trump says he will announce his plans next week to leave the organization to his children. a big announcement and lots of legal documents, but with his children running the trump organization and obviously playing a role in the transition, conflicts of interest are an absolute, not a maybe. so what do we do about this? "the new york times" has been looking into all of this. reporters matt flagenheimer and rachel abrams. what do people need to know? >> i think people need to understand that the trump organization is very much intertwined with mr. trump's children. they have relied on him for everything from legal expertise to financial help. ivanka trump has even relied on his organization for things like i.t., payroll, infrastructure. it's going to be very difficult to separate these two. >> matt, let's dive into this. let's start with ivanka. what are the businesses that she has? jewelry, shoes. explain for people who don't
know what ivanka has built. >> in ivanka's case, like many trump businesses, it's often a licensing deal, branding deal. her products are all over the world. we see, you know, domestically, internationally, handbags, jewelry, shoes. these are items that are frankly all over. in one case we looked at actually on the same day that ivanka trump was sitting in on the meeting with the prime minister of japan there was a private viewing underway in tokyo for ivanka trump products for a licensing deal she's nearing completion. there's a tangled web of business interests here. >> on that point with the prime minister, shinzo abe, help us understand, play this out for us. so she was in the meeting as we know with the prime minister, rachel, and that we think gets her a sweetheart deal of something in japan? >> i don't think we can say -- extrapolate that. we can't say why exactly she was in the meeting. we can't say that this even came up in the meeting, but what we can say is she was in the middle of completing or finalizing a
deal with a company whose largest shareholder is the government of japan. we've asked her representatives whether this even came up at the meeting. we don't know whether it came up at the meeting, but what we do know is it doesn't look very good, right, to have somebody who is in the middle of a deal with the company that has some kind of -- where the government of japan has some kind of influence over them. so it just raises a lot of questions. >> so, matt, the ordinary standard would be semblance of impro private. c -- impropriety. you don't do things that look bad. however, the rules have changed and the push back you'll get on the reporting is, what do i care? his kids are great. love his kids. trump's a big businessman. i knew that when i voted for him. why do i care about the business continuing. what does the research show? >> it's a fair question. mr. trump has said people knew i had this business empire when i was running and he's right about that. it was interesting in his tweets last week about the announcement last week, he said it was visually important was the phrase he used to make it that
he was taking himself out. legally he's on firm ground. a lot of experts agree with him. these questions will persist if it's not obvious in some cases if there is a conflict of interest, the fact that he's doing business, the kids will be doing business internationally. any sort of diplomacy that he does with some of these countries you have to ask the questions. >> it's impossible to extricate him. people saying he needs to put into blind trust, sell his assets. that's impractical. you can't put a business in a blind trust. you can put shares. but he's only right about the law in that it doesn't exist, matt. legal experts will say this is an obvious conflict of interest. it's an ethical morass at best. >> there's really no precedent for this in terms of a president-elect that has this type of business coming into office. >> hey, rachel, there was some talk during the campaign that ivanka's businesses might be
tarnished, her business brand. do we have a sense yet since her father won, business up? business down? has this been a boon for the trump businesses of all of the kids? >> you know, i don't think we have a good sense of whether business is up or down. she's a privately held company so we don't know sales figures. there was some chatter for a while about companies such as macy's or other large national retailers considering whether they should drop her brand because of a lot of things that her father said. there was a time even during the campaign where she was taking efforts to separate herself from her brand because she was very concerned that her brand would be damaged but after the election it's hard to imagine that she is not going to come out of this better than when she started because now her name is even more famous, she's got much more i guess pull over seas. so i would imagine that net it's probably a pretty good thing for her. >> so what do you have to watch for journal lis stickically going forward? the conflicts are obvious, right? you don't have to spend much time on detailing that. what do you need to look forward
to going forward as this problem being manifest? >> rachel. >> the next four years it will be really close for journalists to pay close attention to potential conflicts. this is an administration that needs to be put under a microscope. all of their deals need to be looked at. we need to examine any kind of potential business conflicts that could run up against potential diplomatic decisions, policy decisions. not to say that we're expecting anything bad to happen necessarily, but i just think it's going to be because of how unprecedented this is, we need to pay close attention and to do our jobs. >> rachel, matt, thank you very much for sharing your reporting with us. nice to talk to you. >> there's a lot of news. let's get right to it. >> we're excited to have dr. carson at housing and urban development. >> he's had no experience whatsoever. >> his background was in health care. >> the meeting was a good one. we covered a lot of ground.
>> we're looking forward to another week. >> general michael flynn and his son under investigation. >> these are very real world consequences or fake stories. >> until my family can see justice, no, there's no forgiveness. >> this is "new day" with chris cuomo and alisyn camerota. >> welcome to your "new day." president-elect donald trump hitting the road again. mr. trump's thank you tour heads to three states beginning with north carolina tonight. this as we await his final cabinet picks. >> critics are not happy with trump's latest choice for housing secretary. that will be dr. ben carson. they say he may have lived in public housing at one time, he may be a good doctor but he doesn't have any expertise that goes into a job like this. trump's national security advisor general michael flynn