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tv   Early Start with Christine Romans and Dave Briggs  CNN  July 31, 2017 2:00am-3:00am PDT

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a violent election day in venezuela. the maduro regime celebrating a result global observers say could make him the next dictator. that's not the only trouble overseas. we have reporters on all our top stories from the white house, caracas, and boing as we head toward -- and beijing as we head toward crisis and confrontations around the world. good morning, everyone, i'm dave briggs. >> i'm alison kosik in for christine romans. president's new chief of staff front and center at the white house. john kelly assumes the position after what many view as the worst week of the trump presidency. kelly is going to be sworn in at 9:30 this morning. the retired marine corps general will be enlisted with trying to restore order to a white house that appears to lack direction and discipline. >> no easy task for sure. both sides of the aisle are what you might call cautiously
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optimistic. >> i look forward to working with general kelly. >> i do think that general kelly will do a good job as the white house chief of staff. i think he will bring order and discipline to the west wing. >> if anybody can bring order and discipline to this white house, it is general kelly. >> i think that in terms of a great leadership component, the white house has needs general kelly representing it. >> a big early challenge for kelly concerns chain of command issues. who reports to whom, still unclear. typically senior advisers report to the chief of staff. and as we know, this is not your typical white house by any stretch. >> no. a senior administration official tells cnn kelly has been given full authority. the president tapped general kelly, serving as homeland security secretary, to replace reince priebus who resigned last week. political economist and chief strategist for horizon
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investments joining us. good to see you. >> nice to see you, hi. >> let's start with general john kelly, a four-star general, former marine general. how can he instill discipline, order in what's only described as a chaotic white house? >> it's going to be chain of command. i think that's an area where it's ambiguous. we'll see there. to a certain extent, i feel sorry for him. he's got a high bar to clear since you had all the sound bytes from everyone saying he's going to be to do a good job or should be able to. number two, he's got a tough boss to work for. three, i think the big issue as we get into the fall which is a budget crisis that's looming, may not be his strong suit. >> and you talk about, greg, what's looming. we have the debt crisis, raising the did the ceiling coming up in the fall. wall street is looking for tax reform. and now there's talk about, you know, forget about skinny health care reform, there's talk of
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skinny tax reform now. >> yeah, there's talk of that, and i'd say before we even get to that, we may revisit once again health care. you'd think they'd had a belly if you will of health care. -- belly full of health care, but we may look at something to bail out insurers. not out of the question that we could get a bill there. then as you say, there's a big budget fight coming. you've got to raise the debt ceiling, you have to come up with a budget resolution for the new fiscal year. all this comes first before you get to taxes. so for the general who's very good, i would be the first to agree. but the issues are going to be tough ones for him to tackle. >> yeah, and greg, from what we understand, the markets were hoping that it would pivot to tracks reform. it doesn't -- to tax reform. it doesn't appear that way, the president saying let's get back to another vote on health care, threatening to pull the rug out from under the exchanges and from the congressional health care plan itself. what is the appetite in the senate, do you believe, from
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mitch mcconnell toward sticking with health care and finding another path forward? >> well, i think a lot of republicans are saying to the democrats, well, what ideas do you have? and there may be some bipartisan talks as we get into the fall. time is really short with the budget issue, with tax issues. so i'm not sure how much time they'll have to devote to that. and here we have this morning, monday morning, a new story. and that, of course, is growing geopolitical concerns, especially when its which to u.s./china relations. >> and you look at these geopolitical stories that are hitting the news. we don't see the market being rattled by that. you look at how the s&p 500 is doing and the dow. they're up more than 10% so far this year. >> yeah. >> what can really rattle the market? this is of interest to anyone who is invested in the stock market. >> first and foremost, the fundamentals are great. moderate growth, great labor market, low inflation, steady interest rates, good corporate earnings. so that's fine. there's only two things that i would see that could rattle the
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markets. number one would be any sign that tax reform is dead. i don't think it's dead. i think it's going to plod along. it's going to take a while. the other one, though, the wild card now is geopolitical. and i think since donald trump loves scapegoats, since he can't get north korea to do what he wants, he's going to make china a scapegoat. so i worry later this week we may hear the announcement of new u.s. trade sanctions against china. for the markets, a u.s./china trade war is not a good story. >> if there's any country on earth that's immune to twitter diplomacy it's probably china, right, greg? what can the president do to try and move china on doing something to stop the north korean nuclear program? >> well, he can threaten. but i think we'll see on health care, you can't threaten congress. on china, you can't threaten them to do anything. you know, i do think that we're going to have more military exercises, maybe more of these harm missiles that could shoot
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down korean missiles shipped into south korea. there are a few things we can do. the idea that china can wave a magic wand and immediately get north korea to behave, i think that's farfetched. >> you know, back to health care. you know, you talk about what the market doesn't want to see. does the market want to see trump try to implode health care? we heard from health and human services secretary tom price on sunday. let's listen. >> sure. >> what about the individual mandate? is the president considering directing his agencies not to enforce it? have you ruled that out? >> well, the individual mandate is one of those things that actually is driving up the costs for the american people in terms of coverage. we're trying to make it so obamacare is no longer harming the patients of this lands. no longer that they've got coverage but no care. the individual mandate is one of those things. all things are on the table to try to help patients.
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>> greg, is the individual mandate driving up costs, or if you take away the individual mandate, this is like a house of cards, obviously the whole thing will just collapse. >> a lot of arguments pro and con to whether it's driving up costs. if you take it away, less people will be insured. and one thing that president trump said a couple of weeks ago that simply doesn't ring right is that i don't own insurance. yes, he does. he owns health care. whatever party is in power usually views it as an albatross. they don't like to own it because it's such a difficult issue. i think if obamacare really does implode this fall, the republicans get the blame. >> all right. greg from verizon investments, we'll ask you about the future of jeff sessions coming up. insurers have until august 16th to set obamacare rates for 2018. the president's threat to cut off subsidies could mean higher premiums. the president tweeting that if a new health care bill isn't approved soon, bailouts for insurance companies could end.
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insurers hate uncertainty, and they're swimming in it now. they rely on $8 billion on cost-sharing subsidies to pay for low-income americans. some carriers, they've already requested large rate hikes next year to offset costs. nearly half of the company the plan to increase premiums by 20% or more. meantime, other insurers, they're exiting the exchanges completely. big payments that like aetna, humana, and anthem. in fact, 25,000 people in three states, they're at risk of having no obamacare options at all next year. an additional 2.7 million americans could have just one option for an insurance carrier. insurers say they want to work with the administration to fix obamacare, but washington's actions so far have fueled instability. besides threatening cost-sharing subsidies, the white house hasn't committed to enforcing the individual mandate, and that one is getting younger, healthier people to enroll. offsetting the costs for more expensive customers. >> not clear what the path
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forward is. susan collins said let's go back to committee and try to fix health care exchanges. >> it's unlikely -- >> it's unclear if anyone has the appetite for that either. new trouble for a trio of global adversaries, russia retaliates for sanctions. another missile launch from north korea. and venezuela in chaos after an election being called an affront to democracy. we're live on all three stories coming up. i love you, droolius caesar, but sometimes you stink. febreze car vent clip cleans away odors for up to 30 days. because the things you love can stink. voluminous original mascara from l'oreal. in black and now in blue l'oreal's creamy formula builds 5 times the volume the soft-bristle brush separates every lash it's america's #1 mascara for a reason the one and only voluminous original mascara from l'oréal paris
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(vo) when it really, really matters, you need the best network and the best unlimited. plus, get the pixel, by google for $5 a month. welcome back. in apparent retaliation for the sanctions bill passed by congress, vladimir putin saying diplomatic relations to china will be cut by 750, that includes diplomats and technical workers. the state department says the move is regrettable and uncalled for. officials are assessing the impact and a possible response. let's bring in claire sebastian. she's live for us in moscow. so claire, how does this impact the u.s. mission in russia?
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>> reporter: it looks like it's going to cut the number of personnel by more than half -- 755 positions will get cut, according to the russian president, vladimir putin speaking on russian television last night. the russian rationale is that this brings the total number of u.s. diplomatic personnel in russia down to 455 which russia says is the exact same number. russian diplomatic personnel that it has in the u.s. it should be noted on the face of this, russia says this is settling the score for actions that the obama administration took in december, seizing two russian diplomatic compounds and expelling 35 diplomats, 755, a significantly bigger number than that. but as you said, it does affect technical staff as well as diplomats. and we expect, as well, local russian staff here in russia, as well. the president saying that the clinching factor for this was, of course, that passage through congress of that bill authorizing new sanctions. he said this is why he took that action. take a listen.
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>> translator: we wait a long time for things to perhaps change for the better. we had such hope that the situation would change, but judging by the situation, that will not be soon. >> reporter: vice president mike pence is in estonia now reassuring that country and nato of the u.s.' commitment. that will certainly enflame tensions further. he says he expects russia's behavior to change. for its part, russia says it does not bow to pressure. this is a tense moment. >> it certainly is. claire sebastian live for us from moscow. thanks. the u.s. and japan agreeing to take further action against north korea. prime minister shinzo abe and president trump speaking by phone sunday, just days after north korea's latest missile launch. the two leaders discussing increased economic and diplomatic pressure on the kim jong-un regime. that will require help from
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china, the target of a nasty trump tweet storm last week. cnn's will ripley live from beijing with the latest developments. good morning to you. is there a country more immune on earth to a twitter diplomacy storm? >> reporter: no. i think china has figured out the strategy to deal with president trump's tweets. that is they ignore them. at least publicly. chinese president xi jinping gave a speak hours after president trump blasted china on twitter. he didn't mention the u.s., he didn't mention north korea. but he talked about the importance of china to strengthen its own military. and he staged a massive military parade over the weekend, showcasing his latest stealth fighter jets and trying his own nuclear-capable icbms. vice president mike pence also speaking about north korea over the weekend, saying that the united states insists that north korea completely disarm, that they abandon their new york and missile programs. i can tell you after visiting north korea most recently, just last month, and speaking with officials at length about this,
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that is a non-starter for the north koreans. it's not going to happen. they view the missiles as vital to protect themselves against the united states. they also view them as valuable leverage with the international community. china would argue that, and north korea, as well, that the united states' actions over the weekend certainly wouldn't be an incentive for north korea to disarm. just hours after north korea launched that icbm that analysts say could strike many portions of the mainland u.s., as far to the east as chicago and certainly los angeles, seattle, denver, as well, hours after that the u.s. with its own show of force, launching missiles into the sea, flew u.s. bombers along with japanese and south korean fighters over the peninsula, and they tested their thad missile defense system which china views as a destabilizing act that threatens their own national security here. you see china, the u.s. need to work together. they're far apart right now. >> certainly are. live for us this morning in beijing, thank you. venezuelan president nicolas maduro declaring victory in a controversial election.
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it's widely regarded as a fraud and a vehicle to rewrite the constitution to consolidate maduro's power. government officials in caracas claiming a voter turnout of over 41%. maduro's opponents calling that figure fiction. the violence on sunday very real. now we want to caution you, the video you're about to see is disturbing. >> one police officer caught on fire from that explosion. election day clashes between protesters and police claiming at least ten more on sunday. the death toll since early april now at 125. the state department condemning the election, insisting the u.s. will continue to take strong and swift actions against the maduro regime. let's get the latest from laila santiago. she's live in caracas. good morning. >> reporter: good morning, dave. certainly a lot of uncertainty
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remains. president maduro may be calling this a victory. as you mentioned, the opposition is calling this a fraud. you know, that video you actually just showed is not far from where i am standing right now where for days now i have heard consistent blasts as the opposition and the government forces clash on the streets of caracas. as the position proofts what -- the opposition protests what has become a way of life, not just because of the protests and violence but because of a collapsing economy. because of food shortages and medical supply shortages, the hospitals are filled with people who may get medical attention from doctors, but those are doctors who don't have the supplies they need to treat the patient. so certainly not just uncertainty but frustration is what we're seeing on the streets. we expect the opposition to take to the streets as leaders have called for protests in a matter
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of hours at noon local time here. but while the opposition maintains that it will continue to fight, despite admitting that they are tired of the political unrest that we've seen on the streets for months now, the government is calling this a victory saying it will move forward with the new assembly that was elected last night. this is a new assembly that could rewrite the constitution and essentially give president nicolas maduro more power in the future. >> it economy continues to collapse -- the economy continues to collapse, the government heads toward dictatorship, reporting live from caracas, thank you. they say the vast majority of the 12% estimate that voted were state workers who had no choice. they threatened to take away benefits if they didn't vote. >> and the question on that ballot wasn't whether or -- whether or not the constitution should be changed, it's who's going to do it. they didn't have a choice
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whether it should happen or not. >> from bad to worse. sports ahead, the first big-league hit for kyle farmer. one he won't soon forget. this ridiculous dodger season continues. coy wire with more in the "bleacher report" next. the in-laws have moved in with us. and, our adult children are here. so, we save by using tide. which means we use less. three generations of clothes cleaned in one wash. those are moms. anybody seen my pants? nothing cleans better. put those on dad! it's got to be tide. our 18 year old wase army in an accident.'98. when i call usaa it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family, and we will be with usaa for life.
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another commotion at the ballpark for new jersey governor chris christie. >> coy wire has the viral video in this morning's "bleacher report." i have to say, we have been enjoying this. good morning. >> yes, and we're unfortunately going to have to just talk you through this one. he was at the ballpark in milwaukee where his son is part of the club. they were playing the cubs.
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she and went nose to -- and he went nose to nose with a heckling fan and basically called him a big shot after the fan had been heckling him. it was great video. unfortunately, technical difficulties -- i'm sure dave and i can -- we can tweet that for you later to see it. it has gone viral. we'll talk about a major milestone for rangers slugger adrian beltre. the first slugger to hit 3,000 hits. he is also the first dominican-born player to achieve the feat. the standing ovation from the hometown fans. then his children out there unveiling a logo marking the occasion. look at this -- two daughters and his son with big hugs for dad. they were able to share that moment there. watching it all from the front row. let's tell you about dodgers rookie kyle farmer. he has one hit in the big leagues. boy, was it a good one. in his first at-bat he smacked a two-run double in extra innings
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to give his team 39-2 win over the giants. the first dodger to congratulate farmer, his former teammate from the university of georgia, alex wood. and farmer's parents flew all the way from atlanta to see their son's first weekend in the big leagues. they were there to see it. and guess what -- after the game he gave dad that ball from his very first at-bat. what a memorable moment. finally, how much money would you pay for a piece of dirty laundry? how about more than 160,000? that's how much the jersey of yankees rookie aaron judge went for at auction. it was the jersey he pour wore in his debut last august in which he hit a home run, something he's been doing all season. he's currently tied for the most in the majors with 33. that number is nearly 29% of his salary. a ton of money. also more than the $135,000 steph curry jersey that was game worn in the finals. i like to relate everything to food. that would be $42,386 -- 42,382
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quarter pounders with cheese. >> nice math, my friend! >> the burning question i have is how do you preserve the body odor smell? put it in a ziplock bag. >> a ziplock. i never understand the game-worn jersey phenomenon, but that's just me. i like the quarter pound with cheese math. well done this morning, coy wire. thank you, my friend. ahead, a white house in desperate need of discipline about to get a marine corps general added to the mix. john kelly starts as chief of staff today. can he get the culture under control and advance the president's stalled agenda? just a few miles outside boston, a rock-climbing adventure can take your next trip to new heights. >> what i love about rock climbing is combining the physical challenge with the mental challenge of solving the
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problem. it makes you think. makes you work. >> ah! >> we're here rat quincy quarry -- here at quincy quarry. quincy quarter is a -- quarry is a unique spot outside of boston. it's a little bit different of a location than you'd associate with rock climbing. it's definitely like a little bit more urban. people that climb here have all sorts of abilities. the lessons that we run here are primarily for beginners or folks that are transitioning outdoors from gym climbing. climbing's a great way to work your entire body. you discover various muscles that you didn't know you had. also really rewarding in that in one or two goes you can normally work your way up the route and see a real sense of progress. i'm. >> i'm actually kind of scared of heights. i think it sort of every time you climb the rock, it's battling a little bit of that fear.
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will a new chief of staff bring order back to the west wing? a new era for the trump administration when john kelly is sworn in for his new role today. the president refusing to go quietly on health care after a major rebuke in the senate. he's suggesting sweeping changes which could have a big impact on insurance for millions of low-income americans. incredible pictures of a violent election day in venezuela. nicolas maduro celebrating as he could become the next dictator. that's not the only trouble
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overseas. we have reporters on all our top stories from the white house, caracas, moscow, and beijing. welcome back to "early start." i'll allisison kosik in for christine romans. >> i'm dave briggs. not every day that you have vladimir putin on the cover of the new york tabloids, but that's the case. "real vlad ombre." president trump's new chief of staff front and center at the white house. john kelly assumes the position after another chaotic week in the trump white house. kennely will be sworn in at -- kelly will be spoern worn in at this morning. he will try to restore order at a white house that lacks direction and discipline. >> no easy task. and both sides of the aisle are cautiously optimistic. >> i look forward to working with general kelly. >> i do think that general kelly will do a good job as the white house chief of staff. i think he will bring some order and discipline to the west wing. >> if anybody can bring order and discipline to this white
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house, it is general kelly. >> i think that in terms of a great leadership component, the white house needs general kelly representing it. >> a big early challenge for kelly concerns chain-of-command issues. whom reports to whom, still unclear. typically senior advisers report to the chief of staff. as we know, this is not your typical white house. >> no. the senior administration official does tell cnn kelly has been given "full authority." the president tapped general kelly who was serving as homeland security secretary, to replace reince priebus who resigned last week. let's bring back gregory valier, political economist and chief strategist for horizon investments. good morning you to again. thanks for coming back. let's first talk about general john kelly. he's got his new position as chief of staff for the white house. you know, the white house has had these comings and goings for at least six months now.
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i want to throw you a list here, show you a list of who has left. this is just in the first six months. so as we look at that list and think what the tenure could be for the general who, by the way, is a four-star general, what do you think, what kind of power do you think he brings to the white house knowing how the trump administration, how donald trump runs his white house? do you think that the general's going to be a yes man, or will he be able to go up to the president and say, listen, what you're doing, it's not good? >> if the president keeps tweeting, maybe he'll talk to the president. i think that kelly brings a lot of credibility. he's very highly regarded on capitol hill. but there are two problems. number one is, you've got three different factions in the white house. the new york faction, the washington establishment faction, and then the populous with steve bannon. they don't get along. that's one problem. the other problem i think for kelly is that as we go into the
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fall, the big issues may be more on health care, certainly the budget. maybe we begin debate on tax reform. those three huge issues may not be his strongest suit. >> discipline is desperately needed. hopefully he can instill that. we showed the departures the last six months. the one we thought was coming was the president firing attorney general jeff sessions. it's clear the republicans have pushed back on all fronts including lindsey graham saying there would be holy hell to pay if he fired sessions. the theory is that he will move to the department of homeland security to take john kelly's place. would there be holy hell if he tried to maneuver and fired special counsel robert mueller? >> that story's been leaked, but i'm not buying it. first of all, i'm not sure sessions would want to do it. second of all, can you imagine the confirmation hearing? i think that would be embarrassing for the white house.
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finally, i think if sessions were pushed out of the justice department amid speculation that the president might like to fire mueller, that would create a firestorm in both parties. >> maybe general kelly will put up a big stop sign in front of donald trump and say, wait, don't do it. >> cluck grassley may have done that, saying we will not have time to confirm a new a.g. this year. >> the president not giving up on health care yet. even though it's barely on life support. the president -- >> tweet storm. >> the president had a tweet storm. he's threatening to implode obamacare, much to the chagrin of those in congress. i want you to hear what susan collins said over the weekend. >> it really would be detrimental to some of the most vulnerable citizens if those payments were cut off. they're paid to the insurance companies, but the people that they benefit are people who make between 100% and 250% of the poverty rate. so we're talking about
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low-income americans who would be devastated if those payments were cut off. >> and she's referring to those subsidies that people receiving obamacare get. you know, the president trying to basically dismantle obamacare more than it already is. is this the right thing to do to get what he wants? >> i'm not sure it's the right thing politically. i think that not only democrats but a lot of republicans would say, look, if some of these insurers are going under, we have to prop them up. the consequence for people is going to be huge. so believe it or not, i dothink some form of health reform gets resurrected in the fall. i do think there could be a modest bill that will keep the insurers afloat. >> the president threatened to take away health care for members of congress. he also threatened on twitter to, again, change the rules of the senate. this one -- if the senate democrats ever got the chance,
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they would switch to a 51 majority vote in the first minute. they are laughing at republicans. make change. heaters what senator from -- here's what senator arizona, jeff flake, said about the possibility of changing the senate rules. >> we've just seen the limits of what one party can do even if you change the rules of the senate which we should not do. there are limits to what one party can do. >> to be clear, they didn't get 51 on health care. so forget about 60. but this remines me of my 9 -- reminds me of my 9-year-old who when he doesn't win a game says i'm going to manipulate and change the rules. >> the threats to take away health insurance are not going to prevail. let me skip quickly to another threat that i think could affect the markets this week. that's a threat to china. this is a really serious story. trump sees china as a scapegoat because we can't get north korea
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to behave. if he imposes trade sanctions on china in the next few days which i'm hearing could happen, that would be unnerving because china has the ability to retaliate. >> and we've certainly seen a very hefty run-up in the markets. we will keep an eye on the markets if that happens. greg, thank you very much. >> you bet. yep. a new trio -- new trouble from a trio of global adversaries. russia, north korea, and venezuela. we are live on all three of those stories next. 60% of women are wearing the wrong size pad and... ...experience leaks. introducing always my fit. find the number that's right for your flow and panty size on the top of any always pack. the better the fit, the better it protects. always. done.rs. super-cool notebooks. done. that's mom taking care of business. but who takes care of mom? office depot/office max. this week, filler paper just one cent with five dollar minimum purchase. ♪taking care of business.
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venezuelan president nicolas maduro declaring victory in a controversial election widely regarded as a fraud and vehicle to rewrite the constitution. government officials in caracas claiming a voter turnout of over 41%. maduro's opponents calling that figure not true. violence marred election day. we want to caution you, the video you're about to see is
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disturbing. >> one police officer caught on fire from that explosion. the u.s. now considering slapping sanctions on its vital oil industry. the state department condemning the election, as well. let's get the latest from cnn's laila santiago, live in caracas. good morning. we heard estimates of 40% turnout in that election. are you hearing any independent analysis of how many people did vote? >> reporter: at this point, a back and forth as the opposition calls this a frauds, as the -- a fraud, as the government calls this a victory. you know, there were more than 19 million voters that were eligible to take part in this election yesterday. and we know that the government is saying more than eight million voted. the opposition is saying that -- that less than one-third of that actually showed up to vote. no independent agencies chime
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information to maybe give a better idea of what may have actually been the case. just a back and forth. meanwhile, on the streets of caracas, the streets of venezuela as a whole, really a lot of uncertainty as the opposition continues to take to the streets. they plan to come out again. a lot of the opposition leaders last night on social media calling people to take to the streets, to not understand for this assembly that could it rewrite the constitution and give president maduro more power. as i was on the streets just in the last week, as that tension was building to that day that the opposition had hoped would never come for that election, you could really see people of all ages out there. i talked to a 12-year-old who was out there, as he was putting together a molotov cocktail to take a stand against the national guard here in venezuela. i talked to a medic who showed me pictures that were too graphic to share of the injuries
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that he has treated as he treats people in these protests. one of the things he said that stuck with me is, look, these are venezuelans fighting venezuelans. brother fighting brother. and all we want is peace. but at this point, all we have is uncertainty. >> yeah, the economy continuing to collapse. the government headed tf ed tow dictatorship. thanks. tesla is ready to sell its first mass market electric car. is it really affordable? cnn "money stream" next. binders. done. super-cool notebooks. done. that's mom taking care of business. but who takes care of mom? office depot/office max. this week, filler paper just one cent with five dollar minimum purchase. ♪taking care of business. pepsoriasis does that. it was tough getting out there on stage. i wanted to be clear. i wanted it to last. so i kept on fighting.
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calling the move regrettable. let's bring in cnn's claire sebastian live for us from moscow. good morning. >> reporter: good morning. i want to bring you some new information that we just got from the kremlin in the last half hour or so, clarifying that the 755 people that the russian president announced last night would have to be cut from the u.s. diplomatic mission in russia, that they say is up to the u.s. to decide who is affected and clarifying that it will include diplomats, non-diplomats, and local russian staff in the country. yes, this is a big number, 755, significantly more than the 35 diplomats that the obama administration expelled. the russian diplomats that the obama administration expelled in january. two mitigating factors there that the u.s. can decide who it is not just diplomats that will be cut from the u.s. diplomatic mission in russia. the kremlin also saying that should the u.s. respond to this, they will take counter measures. the president saying last night
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that he was not ready to do this as of yet. it was still an option on the table. further, set to enflame tensions, vice president mike pence in estonia on russia's western border reassuring that country and nato of russia's commitment to stand with them. he said that russia was the biggest threat that the baltic nations face. he called it an unpredictable neighbor. we do have a standoff here. and these comments are set to entrench it even further. >> they certainly are. cnn's claire sebastian live for us in moscow. thanks. the u.s. and japan agreeing to take further action against north korea just days after north korea's latest missile launch. president trump and prime minister abe discussed increased economic and diplomatic pressure. that will require help from china. the target of a nasty tweet storm last week. cnn's will ripley live. warning that the markets would have a stern reaction to any trade war between the u.s. and
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china. but how might president xi react to a president trump tweet storm? >> reporter: well, any xi did have an opportunity to respond to president trump's tweets over the weekend because he gave a speech just hours after that tweet storm where president trump said that china is doing nothing about north korea. that he's disappointed in china. and predictably, beijing has a policy ton directly respond to -- not to directly respond to president trump tweets. president xi never mentioned the united states or north korea but talked about the importance that china beef up its own military. in fact, they staged a massive military parade at one of their top military training sites in inner mongolia. dramatic to see chinese stealth fighters, even their own nuclear-capable icbms, and within the past five five minutes or so i received a statement that has come in after cnn sent questions about president trump's tweets on china. "no direct response to the content of the tweets.
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however, this is what a spokesperson for the chinese foreign ministry is telling me. "china has fulfilled its responsibility in promoting a proper resolution to the north korean nuclear issue, and our efforts have been clear for all to see. the issue was not caused by china, and its resolution requires multilateral efforts. so a direct response now to cnn reporting just within the past few minutes. this just really underscores the differs between the way that u.s. and china look at this, dave. china thinks the united states shares a lot of the blame because of its military exercises with south korea and also japan. the u.s. thinks that china shares the blame because they're trading with north korea, the economy grew almost 4% last year. >> the president has a full agenda for cabinet meeting at 10:00 a.m. this morning. thank you. let's get a quick check on cnn "money stream" this morning. global markets mostly higher after the dow hit a record high. but the nasdaq and s&p 500 slipping on earnings misses from
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amazon and exxon. however, look at earnings overall. they've been really strong. what's coming up this week? the most valuable company in the world delivers its quarterly report. apple reporting on tuesday. another potential market mover this week, the july jobs report. that comes out friday. in june, the u.s. economy added 222,000 jobs. that's it for us. thanks for joining us. i'll alison kosik. >> i'm dave briggs. can a marine corps general restore some order in this trump white house? we'll find out starting today. "new day" starts right now. >> general kelly will do a good job. he'll bring some order to the west wing. >> the white house looking to reset in the wake of a failed health care bill. >> i said from the beginning, let obamacare implode and let them do it. >> it seems incomprehensible that we have a president that wants to sabotage health care. >> if we don't make it as a country when we spend our time
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fighting all the time. >> russia's destabilizing activities are unacceptable. the president will sign the sanctions to reenforce that. >> russian president vladimir putin now confirming the staff at u.s. diplomatic missions will be cut dramatically. >> retaliation is long, long overdue. >> this is "new day" with chris cuomo and alisyn camerota. >> welcome to our viewers in the united states and around the world. this is "new day." it's monday, july 31st, 6:00 in new york. chris is off today. john berman joins me. >> what could possibly happen next? >> here is our starting line. president trump hits the reset button after one of the most chaotic weeks of his presidency. in just hours the president's new chief of staff, general john kelly will be sworn in. president trump will final come face-to-face with his embattled attorney general jeff sessions after repeatedly attacking sessions. what will happen when they meet at a cabinet meeting today.
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>> the president also launched a flurry of statements about health care, casting blame for the failure of the repeal efforts squarely on congress, not him. the president is threatening to cut off payments to insureds which could be a serious blow to low income americans. then there are new threats from overseas. russians ordered the u.s. to cop its diplomatic staff by more than half in retaliation for new u.s. sanctions, while the trump administration increases pressure on china after north korea's new missile test. cnn's sara murray is live at the white house. a busy day, sara. >> reporter: that's right and john kelly's first day here at the white house. he will be sworn in this morning followed by that cabinet meeting. everyone has the same question on the top of their minds, can kelly really bring order to this very wild west wing? >> reince was a good man. john kelly will do a fantastic
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job. >> reporter: president trump turning to john kelly for help rebooting a stalled white house agenda and reigning in a chaotic west wing. >> the president wants to go a different direction, wants a little more discipline, more structure in there. >> it remains unclear how kelly's appointment will impact the chain of command at the white house and if the former homeland security chief will exert any influence over the president's own behavior including his use of twitter. >> you have to let trump be trump. anybody who thinks they're going to change donald trump doesn't know donald trump. >> the president remains at odds with many in his party over his repeated public attacks on attorney general jeff sessions. >> well, it's kind of hurtful, but the president of the united states is a strong leader. >> reporter: the two men are expected to come face-to-face today at the president eats cabinet meeting. trump also turning to health care

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