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European Union's Credit Rating Downgraded; Donald Trump Flip- Flops; Campaign Adviser: Trump Dropping Call For Muslim Ban; States Of Play; New Polling Numbers; Clinton Leads Trump In New National Polls; Elizabeth Warren Joins Clinton On The Trail; Warren: Trump Is A "Small, Insecure Money Grubber"; Warren: Trump Would "Crush You Into Dirt"; Devastating Damage From Floods; Flash Flood Warnings Issued In W.V.; W. V. Facing New Flooding Threat. Aired 8-9p ET

Aired June 27, 2016 - 20:00   ET


[20:00:09] ANDERSON COOPER, CNN HOST: Good Evening. Thanks very much for joining us.

We got breaking news tonight. Remember that statement Donald Trump made about barring all Muslims from entering the country? Listen.


DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Donald J. Trump is calling for a total and complete shutdown of Muslims entering the United States until our country's representatives can figure out what the hell is going on.


COOPER: That was Donald J. Trump, December 7th, reading from a press release. The breaking news tonight nearly seven months later, forget everything he said. Because after backing away from it, then re- embracing it, our sources now is say he is dropping the Muslim litmus test entirely. We have details on that just ahead.

But we begin tonight with American 401(k) shrinking. British regrets. Seeing its credit rating cut today. Brexit politicians going back on promises they made to win votes, turmoil in the governing party and a absence for carrying out the voters' wishes, stirring second thoughts from those yes voters and you have a recipe of Brexit remorse with a side of mushy peas. A piece in a moment.

First, the guy with some sense and pounds and pens and veteran financial journalist Ali Velshi. It is great to have you here.

So what's going on? The stock market here continues to slide.

ALI VELSHI, GLOBAL AFFAIRS AND ECONOMIC ANALYST: Yes. This is pretty serious. I mean, we have over three percent losses on Friday closer to two percent today. So at that point, five percent, I mean, there's some years where that somebody's entire return on the stock market.

I know it's worrisome to people. I would caution people that while the stock market goes up and down and we may be headed for a recession at some point in the next year or 18 months according to experts, I don't think this is the precipitating event. I think the effect of Brexit on U.S. investors is probably coming to an end.

Friday was vicious. There were bank stocks that lost more than 10 percent of their value. And that's understandable because nobody knows what this is about. But there are a lot of other stocks that were taken down and no one can figure out why would you sell that stock off versus that one? They don't do any business with the UK.

I think the uncertainty is what's getting people because we don't actually know what Brexit results in, what happens to the UK, what new deals they cut. We don't actually know how to value our investments in the United Kingdom. So I would caution most people to say you don't understand it, it doesn't mean that it is all bad.

COOPER: The other question mark is the potential political consequences not only in Europe but also here in the United States.

VELSHI: Yes. I think that's more serious. I think the message that there is an entire class of people who feel entirely disenfranchised, putting aside the fact that the number of people may have voted because of xenophobic messages or anti-immigrant messages. There is a core of people in the United Kingdom and in the United States, maybe they were manufacturing workers, maybe they are working class people who feel that these trade deals that make companies richer, that make country's GDP grow don't do a damn thing for them and they are frustrated.

And on the UK, this was the lever they had to pull and they pulled it. For many voters, nothing to do with the EU and its relationship with UK. I think the same thing is going on here in America. Unless we understand there's a bunch of people for whom there is no movement to help them, they are simply being ignored and bypassed. We may see this sort result. Vote for somebody who says they can do something for you and find out later that they can't.

COOPER: Ali Velshi, always good to have you on in the program.

We always seem to have meet under these circumstances with Ali. More now on the virus of more to UK, some even coming from the pro-Brexit side and Clarissa ward has a latest in the financial and political fallout as well as what appears to be a pair of broken promises from the pro-Brexit side. Watch.


CLARISSA WARD, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Fear is sweeping the world's financial markets and the streets of London over concerns the Great Britain's vote to leave the European Union will trigger other nations to do the same. That could set off a wave of turmoil that some worry would be the beginning of the group of 28 nations falling apart.

Scotland is already threatening to break away from the UK over the Brexit vote because they want to stay in the EU. Secretary of state John Kerry travelled to Brussels today to discuss damage control. JOHN KERRY, U.S. SECRETARY OF STATE: I think it is absolutely

essential that we stay focused on how in this transitional period, nobody loses their head, nobody goes off halfcocked. People don't start ginning up (INAUDIBLE) premises.

WARD: It is still unclear what a Brexit will look like. British politicians who campaigned for leaving the EU are already walking back a number of promise. Most prominently, a pledge to leave campaign plastered on a bright red bus that exiting the EU would save Britain 350 million pounds a week, money that could be poured into the country's National Health Service.

But in an interview with ITV's "Good morning, Britain," Nigel Farage, the leader of the UK anti-immigration UK party and one of the faces of the leave campaign conceded that probably wouldn't happen.

[20:05:25] UNIDENTIFIED FEMALE: The 350 million pounds a week we send to the EU, which we will no longer send to the EU, can you guarantee that's going to go to the NHS?

NIGEL FARAGE, UK ANTI-IMMIGRATION LEADER: No, I can't. And I would never have made that claim.

WARD: The leave movement also promised that a Brexit would bring immigration numbers down. On BBC News night, one leave campaigner appeared to measure expectations.

UNIDENTIFIED MALE: Completely at odds with what the public think they have voted for.

UNIDENTIFIED MALE: I do not imagine that that from the EU. It means we will have some control over who comes in and what numbers.


COOPER: Clarissa Ward joins us now.

So Prime Minister David Cameron resigning, has a date been set to find a replacement?

WARD: Well, Anderson, we now know from the conservative party that they expect to have chosen a new leader by September 2nd. That's the date they're giving. That, obviously, though, is still more than two months away. And in the meantime, you have a serious political vacuum in the UK. You have seen a slew of resignations from opposition party lawmakers and no sense yet - you know, I think the leave campaign is really using this time, stalling for time even while they try to envision and work out what a Brexit will actually look like.

But European leaders have a different mindset. They are saying we don't want to prolong the agony. We can't set a precedent here. We need swift, decisive action. So these next couple of months will be very crucial, Anderson.

COOPER: All right. Clarissa Ward. Clarissa, thanks very much. And as if Britain wasn't already going through enough, the English

national soccer team today was humiliated by team Iceland, knocking them out of this year's European championships. The coach late today stepping down -- stepping up for us tonight, two correspondents who have seen a lot but never anything like this.

CNN's Richard Quest, host of "QUEST MEANS BUSINESS" and "AMANPOUR" anchor, Christiane Amanpour.

Christiane, it seems like a lot of promises were made by leaders of the Brexit movement, immigration go down, security would increase, the economy would thrive, are these leaders now at all in a place to follow it through on what has been promised?

CHRISTIANE AMANPOUR, CNN HOST, AMANPOUR: Listen, Anderson, today has been marked by a series of what people are describing as backtracking and U-turns. Plus a very real case of having no plan. Leave has not come out to say what the plan is. So, what's going on, though, is that they are sort of backtracking. And people like Boris Johnson even one of the key intellectuals Daniel Hann, spokesman for this campaign. That actually, well, maybe we have to be, you know, kindlier, gentler, and temper, what we said was going to be a major halt in free flow of movement and migrants coming to Britain. So they are saying that maybe the immigration picture won't change at all. So that's a little troubling.

And then at least for those who voted leave. And then they're also saying that it was a mistake to promise that this 350 million pounds, which was a mythical figure used by leave would go, for instance, into NHS, the National Health System here.

So those two very key points that the leave campaign made very, very important and central are sort of being waffled about right now.

COOPER: Richard, I mean, the UK won't officially leave the EU until parliament triggers something called article 50. Is there any chance at all after all of this they might not actually go through with it?

RICHARD QUEST, CNN HOST, QUEST MEANS BUSINESS: Highly, highly unlikely. Wishful thinking by a variety of people who would like to think there could be a second referendum or somehow parliament will go rogue and rebellious and not give effect to the will of the people. But the Prime Minister, David Cameron, in the building behind me today basically said the people made their decision and it is our job to get on and do it.

Now, look, I have heard a variety of weird constitutional possibilities, theories and outright nonsense. The truth is, though, if -- you know, 17 million people voted to leave the EU. Even -- even if you allow an element of regret to tears, those who have buyer's remorse, you would still end up with a virtual riot if parliament did not give effect to the will of the people. They can huff and they can puff but ultimately that is the way it's going to be. Pretty much everybody accepts that.

COOPER: And Christiane, is that the way it seems to you? Even though, know you, what you are saying it seems it is going to go through. It's just unclear what exactly that actually means?

AMANPOUR: Well, yes. I mean, look, the real, real issue here is that -- we said it over and again. It has become a cliche. This is unchartered territory. And honestly nobody knows what's going to happen. And it has been an extraordinary fact that we have not heard from the main leave group. People like Boris Johnson or Michael Gogh. We have had a column in a newspaper. We have had a couple of door stepping or door stopping sound bites from Boris Johnson, nothing from Michael Gogh, who was meant to be the key intellect of this leave campaign. They weren't even in parliament today when the prime minister went to face the music. And so, we just don't know.

And on the one hand, the leave people are now saying we want access. We want to keep the single market. But that goes hand in hand with free movement of people, which they don't want. So now they are hoping that David Cameron can somehow negotiate best terms and best deals for them when he meets with European leaders, which he will do tomorrow morning in Brussels. It is going to be really interesting to see what kind of reception he gets there.

[20:10:46] COOPER: Richard, I mean, the stock market in the U.S., again down today in a big way. In Britain, is it the ripple effects - I mean, is there any end to them at this point?

QUEST: OK. So, we are now in an absolute spider's web of complexity. In many ways, far greater the 2008 crisis, when you were putting out a fire. I'll explain just briefly why.

You have got in this situation uncertainty left, right and center in central Europe, in the EU, in the UK. So companies are putting off spending and putting off plans. You have got consumers that are worried and, therefore, they're going to stop spending.

On top of that, you have got the pound, which is falling which, of course, is importing inflation. But the other side of that is the dollar is rising, which is causing problem for U.S. exporters, big U.S. multinationals and that's taken its toll on the stock market. And that, in turn, Anderson, will create problems for the U.S. fed that would dearly love to raise interest rates, but dare not do so now in this very fragile febrile economic environment. Put it all together and you have one unholy mess in the global economy at the moment that is going -- and everybody involved has to tread very gingerly because, frankly, the first wrong move could bring the whole lot tumbling down.

COOPER: Well, you both have been reporting round the clock on this since it happened. Thank you so much for joining us tonight. Appreciate it.

Well, just ahead, a lot of politics here. The breaking news, Donald Trump changing his position again on his called to bar Muslims from the country. First it was all Muslims then some Muslims then all Muslims again temporarily. Now none apparently. Details when we come back.

And later, we are on the flooding scene in West Virginia where the destruction is already severe and flash flood warnings remain in effect.


[20:16:19] COOPER: Hey, welcome back.

The breaking news tonight, the country's loudest advocate for keeping Muslims out of the country at least until a secret back in December we can figure out what's going on is growing and changing his position. Donald Trump backing away completely from his proposed Muslim ban. Part of what appear to be a broader ship in tone since changing campaign management less name calling for one.

Our Sunlen Serfaty joins us now to explain all of it.

So, let's start with the one-time Muslim ban that looks like it is no more. What happened?

SUNLEN SERFATY, NATIONAL CORRESPONDENT: That's right. Well, this is a big shift, Anderson, sources telling CNN that the Trump campaign is working on crafting this memo right now to make these changes.

What we do know is this. Trump will now no longer call for specifically a ban on all Muslims. Instead he will call for a ban on all immigrants coming from countries with known terrorism links. This comes as Trump does seem to be trying to hit the reset button, taking steps to reposition himself for the general election.


SERFATY (voice-over): Donald Trump's abandoning of his complete Muslim ban isn't the only example of the presumptive nominee softening his position. He is also reigning in his tough talk on immigration, no longer featuring his call to deport undocumented immigrants in his stump speech.

TRUMP: We want people coming into our country, but they have to come in legally.

SERFATY: But one area where Trump is not dialing things back, his criticism of political opponents. Presumptive GOP nominee today blasting Elizabeth Warren after the progressive fire brand attacked him during an appearance with Hillary Clinton.

SEN. ELIZABETH WARREN (D), MASSACHUSETTS: That's who Donald Trump is. The guy who wants it all for himself. And watch out, because he will crash you into the dirt to get whatever he wants.

SERFATY: Trump responding that Warren is a racist and once again referring to Warren by his favorite nickname for the Massachusetts senator, Pocahontas, telling NBC News quote "she used the fact that she was Native American to advance her career. Elizabeth Warren is a total fraud. Trump attempt that making some recalibration coming just one week after the firing of his campaign manager Corey Lewandowski, and with his campaign facing serious headwinds. New polls show Hillary Clinton with a clear lead in national polls and reveal real warning signs for Trump beneath the surface. While both candidates have high unfavorable ratings, more voters see

Trump in a negative light. And a hefty two-thirds of voters see him as unqualified to be president. An assessment that even Senate majority leader Mitch McConnell tried to dodge.

SEN. MITCH MCCONNELL (R), MAJORITY LEADER: He has made a number of mistakes over the last few weeks. I think they are beginning to ride the ship.

SERFATY: Refusing to say whether he believes that Trump is qualified to be president.

MCCONNELL: Look. That ought to be up to the American people to decide.


COOPER: Sunlen, Trump's shift on the Muslim ban, do we even know what countries now he's talking about this ban would allegedly apply to?

SERFATY: We don't. And all that is still very unclear, Anderson. The Trump campaign simply has not divulged with the country had this ban would apply to. What we do know is that they say it would apply to countries with known terrorism links, and that would include country that train and equip terrorists in some way. Trump spokesman saying tonight that they will come out with a list of countries at some point, once they have more details and specifics to offer. But at this point there's no hard timeframe for when those very important details do come out - Anderson.

COOPER: All right, Sunlen Serfaty. Sunlen, thanks very much.

Let's bring in our panel. Clinton supporter and former New York City council speaker Christine Quinn, Patrick Healy, national political correspondent for "New York Times," Trump supporter Kayleigh McEnany, conservative Trump critique Tara Setmayer and New York Trump campaign co-chair Joseph Borelli.

Kayleigh, let me start with you. OK. So he said a complete ban of Muslims until entering the country, until we figure out what the heck is going on. Have we now figured out what the heck is going on?

[20:20:11] KAYLEIGH MCENANY, CNN POLITICAL COMMENTATOR: No. But I think he has met with lawmakers and lawmakers have said to him it will be a more viable policy if he banned people from coming into terror countries. This was in fact, a proposal that has been voted on. Senator Rand Paul put it on the floor.

COOPER: Wait. I mean, Ted Cruz was proposing this during the primary season. So Donald Trump is now basically adopting a position that he was attacking his opponents for having at the beginning of the primaries.

MCENANY: He is. But here is the thing. Donald Trump is flexible. He is a negotiator. And he is someone who can break through gridlock. Contrary to that, you have the president who, when he doesn't like what Congress does, he just stonewalls over Congress and uses the executive order which has strap down last year.

COOPER: But as a Trump supporter who clearly has, you know, you have political beliefs, are you concerned at all that he is so flexible that he is just, you know, like somebody from the fantastic four? I mean, that there is no core there at all? I mean, is everything flexible, both building the wall, making Mexico pay for it?

MCENANY: No. I think there is a core. The core is protecting our country's borders, making sure terrorists don't get in, whether that is via Muslim ban, whether that is via banning immigrant from terrorist countries, I don't mind. I need someone who can break their gridlock in Congress. That's how you get a bill. That's how you get proposals done. That's how you get a law, you know.

COOPER: OK, Tara, I mean, you're not a Trump fan. You know, a supporter will say, alright, this is a good sign of flexibility on the part of the candidate. That's what she wants, somebody who adapt to the situation. This is also called just flip-flopping in the world of politics. And other politicians have been hammered for flip-flops and don't even come as close as this.

TARA SETMAYER, CNN POLITICAL COMMENTATOR: No, absolutely. Which is part of the reservations that those of us who don't support Trump on the Republican side have. That he is so flexible that he will say whatever he needs to say at the time to get what he wants. He has done that throughout his business career. He has done that over promises and under delivers. He changes his mind on a bunch of different things. I use the example about what he did in Atlantic City, with this. This is in real world terms.

This is who Donald Trump is. He does this all the time. So the people that voted for him, that are latched on to him and think that he speaks for me. Well, does he? He speaks for you maybe this week. But then next week he is going to speak for so-and-so over there if it's politically convenient.

MCENANY: That's not true. Any Republican nominee in history. He's not flipping.

SETMAYER: He has changed his position on a number of key issues that got him through the primary. Even immigration was something.

COOPER: OK. Wait. Hold on. How is this not a 360-degree shift?

JOSEPH BORELLI, CO-CHAIR, TRUMP NEW YORK CAMPAIGN: Well, he is not saying we are not going to ban people. We are not going to try to protect Americans from terrorists. He is saying, and I think this is actually a product of some of the meetings he had with Paul Ryan and some GOP leaders. He is trying to bring the party together going into the convention.

COOPER: But in order to get elected during a primary, if you say you are banning all people based on religion -- which, by the way, wasn't just some small policy. He made a very public statement about this. He defended it in the face of huge criticism from people who said this is completely un-American now because - I mean, according to you is pivoting in order to get elected be more appealing to a wider audience . He's saying, you know what? That wasn't really what I meant.

BORELLI: It is definitely a pivot. People said he was going to pivot toward the general election. You have seen saw Hillary Clinton to some degree do that, although she still sort of hedging her bet with Elizabeth Warren today. But candidates pivot toward the general election. He is not going out and saying everything I said is totally wrong. He is saying we are going to limit it to countries.


PATRICK HEALY, NATIONAL POLITICAL CORRESPONDENT, THE NEW YORK TIMES: During the primary season, he was trying to beat 15 other people. And he showed himself to be someone who is willing to say, frankly, whatever it took to win that primary. He wasn't saying, well, we are going to give a religious test here or not here. We are going to look at countries. He wasn't going for the more sophisticated, you know, layered idea. He was going for Muslims are a problem. We are going to temporarily ban them.


COOPER: One at a time. Let him finish.

HEALY: And he won this nomination. But now we are in this sort of clean-up phase where we have to wonder, OK, what is coming next? I mean, if Donald Trump is the master negotiator, is all the stands that he took, you know, through the wintertime just going to be thrown to the wind? Is that wall really going to happen?

BORELLI: This sort of policy has to be worked through Congress. And I imagine he met with Paul Ryan. Paul Ryan had a similar take on this. He believes in a security risk test, not a religious test.

COOPER: Joe, but as a Trump supporter, then, you would be fine with any position he has held up to now with him pivoting?

BORELLI: I said on this stage and disagreed with him on a couple of things.

COOPER: Would it bother you if he pivoted on --?

BORELLI: I don't agree with anyone 100 percent on everything. Is there a great middle that --

HEALY: Who was he winning over with this? Who is the - they are really great middle that so --

BORELLI: I think some people wanted him to be more substantive.


BORELLI: Conventional Republicans thought on how to keep Americans safe.

QUINN: But Joe, how is Mr. Authentic, with big air quotes, how is he now pivoting because Paul Ryan wants him to, pivoting because this one wants him to? And Donald Trump, who has attacked politicians and elected officials over and over, now the phrase his supporters are using al. He can make a deal. He can negotiate. He can compromise. That's what government and politics is -- should be about and he has criticized it as the elite and this, that and the other thing.

Let's take a step back for a second on this policy. We are all assuming in this conversation that this policy is going to be less racist, less offensive and less anti-Muslim. I'm not sure that's the case. Because now he is going to clump in whole countries. And is he going to say everybody from that country regardless of this, that or the other thing, can't come in? And what's his litmus test? And does he know that tragically the person involved --?

[20:25:54] COOPER: But will anyone from Pakistan be allowed in?

BORELLI: Well, he didn't say everyone from every country he is going to list on some list. He said until they can be vetted.

SETMAYER: OK. So what about countries in Europe?

COOPER: Pakistan, the ISI is, you know, has links to various groups. Does that mean everybody --?

MCENANY: That may be a country that's on the list.

QUINN: And so every person? How long do they have to wait till they --?

BORELLI: Should we not be doing this?


COOPER: But earlier, you were arguing its fine to ban all Muslim.

BORELLI: I didn't say that.

COOPER: Your candidate did. It's as broad a brush to say anyone from any country which I guess there is terrorism or he is saying with supports terrorism. I'm not sure how exactly --.

MCENANY: But Donald Trump, he has never argued that all Muslims are terrorists or all people from these countries are terrorists. What he is saying is very logical. We have someone who got in this country on a k-1 fiance visa and killed 14 Americans. Until we figure out what's going on, there needs to be --.

COOPER: What does that mean until we figure out what is going on?

MCENANY: How our immigration system is allowing people in who are terrorists.

BORELLI: Right. And we can't stop everyone. But we just saw Brussels, 40 people questioned 18 people arrested. I think the number, June 18th, people who left Syria went through the European immigration system, were plotting an attack. They were going to attack an Ireland versus Belgium I think soccer game and they were arrested.

QUINN: This is America. This is America.

COOPER: Christine?

BORELLI: That really happened.

COOPER: One at a time because no one listens when you're all talking.

HEALY: I think we have learned, we are actually learning a lot about Donald Trump right now. The way that he uses language, these intimations. Something is going on. If he was directly sort of ball face in your face racist, I think a lot of Americans would react, you know, and they would sort of cringe. But instead there are these insinuations that he has made about President Obama. That he has made about Muslims that play to voters. It sort of allows them --

MCENANY: That's not what --

QUINN: OK. This is the problem.

MCENANY: He has explained that something is going on with our immigration system. You want to talk about America, Christine, let's talk about America, 580 terror convictions since 9/11, 380 of these individuals were foreign born. Forty were refugees. So there is something going on with immigration that connects to terrorism. And I don't want to see another San Bernardino happen. I assume you don't. So until we figure it out, it is time for a temporary ban.

SETMAYER: Donald Trump said that, then it would be a different story.

QUINN: First of all, it is un-America, un-American, totally violates the entire core of our country and our history to say these people because of their race, religion or they country are banned from coming in here until we figure out what's going on. That's what we said to Japanese people in World War II when we put them in internment camps. Until we figure out this threat they all have to be locked up. It's un-American.

And what - if you think about this, we have athletes going over to the Olympics. So if a Pakistani person, person of Pakistani origin who is on the American Olympic team, do they get to come back? Donald doesn't drill down into the details. As Patrick says, he uses buzz words, dog whistles and big pronouncements that people can insert their own fears into.

COOPER: But wait. Why should under Donald Trump's logic, why should a person of Pakistani sent who is currently in this country that goes overseas, why should they be automatically allowed to make that?

MCENANY: This does not affect U.S. citizens.

COOPER: But why? If you are worried about - I mean, in fact we have seen people going overseas to meet with people in Pakistan or elsewhere and come back and commit acts of terrorism, so if you're concerned about that, why would you allow them back? MCENANY: Because when you're an American citizen you have the

technically and constitutional rights to defend you and protect you and nothing will ever change that. That's why doesn't apply to U.S. citizen.

QUINN: Has he said that?

MCENANY: Yes, he has said that.

QUINN: We don't know what he said.

SETMAYER: He said he is into having, you know, Muslims registering. Remember that whole thing, that debacle? This is the problem. Donald Trump makes these big pronouncements. He doesn't get into the specifics. And then when he has to, when he gets called on it, then he walks it back. He flip-flops on everything. He flip-flopped on Libya. It was great. We should go in and get rid of Gadhafi. Now he doesn't. He flip-flopped on being pro-life. He has pro-choice fund- raisers many times in his life. Now all of the sudden he is pro-life. He flip-flopped on immigration issue. He went after Mitt Romney saying he was too harsh. Now he is flip-flopping on (INAUDIBLE) and that is what we are concern about.

COOPER: We got to take a break, but we are going to have more. We're going to have more about this conversation when we come back.

Also, the new national Donald Trump/Hillary Clinton polling Sunlen Serfaty mentioned a moment ago. We'll look at the numbers. And more importantly, the key state-by-state numbers that the -- a lot of folks say it's all going to come down too.

John King's one of those people. He'd break it down for us coming up in a moment.


COOPER: We'll continue the conversation we're having just before the break. Donald Trump's 180 on this.


DONALD TRUMP, (R) PRESUMPTIVE PRESIDENTIAL NOMINEE: Donald J. Trump is calling for a total and complete shutdown of Muslims entering the United States until our country's representatives can figure out what the hell is going on?


COOPER: And back now with our panel. I mean, I guess, Kayleigh, from an outsider standpoint or a non-supporter or a non-critic, either way, it does appear that this is basically political decision. I mean, this doesn't seem to be a decision really based on any change in the security profile, any change in the immigration system, figuring out what the heck is going on.

[20:35:09] The only thing that seemed to have changed from December to now is Donald Trump's standing in the polls and his need to appeal to a wider group.

KAYLEIGH MCENANY, CNN POLITICAL CONTRIBUTOR: I think what change is he met with lawmakers and they said how are you going to implement a Muslim ban? You don't have religion on a passport, there's no way to determine who is Muslim and who is not. Perhaps it would be more viable to exclude based on country of origin, which is written on the passport which is a workable policies.

So I think its lawmakers who have pushed him to this point and I think Donald Trump is someone who had said before I celebrate change, I celebrate flexibility. That doesn't mean supporting the Trans Pacific Partnership and all of a sudden not, the way Hillary Clinton did. Did in means on the margins of your policies, changing where it needs to change. And I think that's what we're seeing and it's a good thing. So he didn't know ...

COOPER: But you really don't believe this has anything to do with politics? You think this is just the first time the lawmakers have been able to meet with Donald Trump since December and point all those things out? Because it seems to me from the moment he said that those things are being pointed out in the one place that Donald Trump pays the most attention to, which is on television 24 hours a day.

MCENANY: I think it's been a process. It been a series of meetings with Paul Ryan, it's been a series of meeting and talks with Mitch McConnell on others on the Hill. I think it's been time that has pushed him. So we're saying here ...

PATRICK HEALY, NATIONAL POLITICAL CORRESPONDENT NEW YORK TIMES: Let's remember November and December, when he started saying this. The sense that there were all these Muslims flowing through Europe and they got to Paris and they killed all of these people. And if only these people had guns and had been armed, you know, there wouldn't have been this slaughter.

And then in San Bernardino, sort of same thing. He knew what he was doing. He was being and frankly a very sort of tactical, maybe a winning politician. He sort of he latched on to an issue. And he wasn't afraid, like many of our politicians are, to sort of go set up a boogey man and go after him. There are a lot of Americans actually feel is a danger.


JOSEPH BORELLI, CO-CHAIR, TRUMP NEW YORK CAMPAIGN: I have stricter gun laws. And now we see them universally moving toward stricter immigration laws to meet that problem as well.

COOPER: But Tara, well it's interesting, I mean if you look at the time to Patrick's point, when he said that, he was against you know however many other more than dozen other Republican candidates, many who had sort of, you know, tough positions, you could say, but also nuance positions and sort of positions which were easy to derive as, oh this is just Washington establishment, political correctness.

SETMAYER: Right. COOPER: I'm telling it like it is. Just going to ban all the Muslims.

SETMAYER: That's exactly what it was. Because you have other people who understand the politics behind it, they understand how things get passed, they understand how the system work. But most people when a terrorist attack happens or something like that, it's emotional.

So Donald Trump is very good at synthesizing things and making it very elementary. So Muslims are killing people as terrorists. Keep them all out. People are like, yehey, without thinking it through.

HEALY: Back then he only needed 30 percent, 40 percent of the vote.

SETMAYER: That's correct. That's right.

HEALY: But now, where we are we in the etch-a-sketch phase or sort of all of that?


HEALY: Sort of goes out the window ...

SETMAYER: Clearly. You hear his supporters ...


HEALY: ... and we don't we're getting responsible Donald Trump or we just getting how he is saying what he needs to say?

CHRISTINE QUINN, CLINTON SUPPORTER: I just want to say we've heard couple of thing what Joe, you said well, that was unconstitutional, the Muslim ban. And Kayleigh you said he didn't understand or that he didn't really get how passports work.

MCENANY: I didn't say that.

QUINN: Well you said that this is more workable because religion is not on your passport. So I don't -- look I think this political flip flopping, but I'm not sure what's worse, somebody running for the presidency of the United States who is such a political flip flopper or somebody who doesn't understand the pure tenets of the constitution, nor someone who alleges his skill to be president is that he has negotiated international deals but never really looked at a passport to understand that religion isn't on there. That's actually scarier to me.

COOPER: We got to take another quick break. From more with the panel ahead. More discussion. The last talk apparently on John King's look at the latest polling, not just the national polling but really the important stuff state by state particularly the swing states. We'll be right back.


[21:42:47] COOPER: Well Donald Trump may be in the middle of what seems to be a general election pivot. He's also hitting a few national poll in pot halls, elections though are one state by telegram (ph) state which why Hillary Clinton campaign today in Ohio and Trump's speak tomorrow in Western Pennsylvania.

And that's why John King joins us now to break it down by the numbers from the national as well the state level. So the new national polling out shows Clinton in the lead. Just walk us through those numbers and explain what they mean overall.

JOHN KING, CNN ANCHOR: The reason to be optimistic, Anderson. In the Clinton campaign but (inaudible) to the latest national (inaudible) NBC/Washington Post poll has a 12-(inaudible)

An NBC/Wall Street Journal poll also released and taken about the same time has only a five-point Clinton lead. When you're average out at the last handful of the national polls which you get here in our CNN poll oppose (inaudible) state by state.

The battleground state polls, this are RealClearPolitics averages in Ohio, a tiny Clinton lead. In Pennsylvania a dead heat. Republicans haven't won that state in forever. In Virginia, another battleground state, a tiny Clinton lead. And In Florida again a tiny Clinton lead.

Now, most of the polls used to build these averages were taken a little bit before these polls. So maybe we will see in the three weeks to the Republican convention, four weeks to the Democratic convention, this is a very critical period of time Anderson as both campaigns is try to re-shape the race heading into the conventions.

Maybe we'll see the state polls move in the direction of the national polls, but at the moment these are the ones to worry about the state polls and they tell you, yes, trend lines are good for Clinton, but a very competitive, tight race.

COOPER: And so what are the numbers saying that each candidate should be worried about the most at this point?

KING: And again heading into the conventions this is what they're trying to deal with. So let's take first let's look at Secretary Clinton. Yeah, she's leading nationally. Yes she has small leads in most of the battleground states. Her unfavorable ratings still 55 percent.

That's why you see nationally on cable, the ads slamming Donald Trump about Brexit. When you go in a battleground states you're seeing biographical, upbeat ad about Hillary Clinton working for healthcare, working to health children. They're trying to change this unfavorable number also 50 -- 66 percent of voters, excuse me say they want someone to take the country in a new direction.

Lot of people view her as a third Obama term. This is the tough number for her. If voters want change, Donald Trump has a better chance, so Hillary Clinton needs to address that.

[21:45:00] If you're Donald Trump and your three weeks from your convention, this is why you're moderating your positions right now on the Muslim ban in other issues moderating your rhetoric. You get 7 in 10 Americans say the prospect of a Trump presidency makes them anxious.

Nearly two-thirds say Donald Trump is unqualified and he has even higher unfavorable ratings than Secretary Clinton. So you add all the stuff this is why Trump trying to get to his convention in a better place. If these numbers hold when we open the Republican convention in three weeks, if this numbers are the same that's a candidate trouble.

COOPER: So -- I mean, you know, conventions are largely about the party unification. Is each party is unified as they need to be at this point?

KING: If you would have to say here advantage Clinton. But again she's not out of the woods. Nine in 10 Democrats -- 9 in 10 Democrats say they plan to vote for Hillary Clinton in November. That's a pretty good number and she's consolidating the Sanders vote quicker than Barack Obama consolidated the Hillary Clinton vote back in 2008. So that's a good a number for Secretary Clinton.

This number is getting worse for Donald Trump 77 percent of Republicans say they plan to vote for the presumptive Republican nominee. That number has gotten worse in recent weeks, the attacks on the judge, other Trump controversies.

So you would say that she has an advantage, no question about it right now. But she's not out of the woods Anderson when voters are given the four choices the Democrat, the Republican, the Libertarian, and the green party candidate, Hillary Clinton drops much more than Donald Trump. These are NBC/Wall Street Journal numbers.

She drops much more it becomes essentially a dead heat. Gary Johnson picking up some votes. Jill Stein, the green party candidate what is this? A lot of Sanders' voters who aren't quite ready to go to Clinton if they have other options they'll think about it so she still got some work to do.

COOPER: All right John thanks very much.

Back with our panel. Christine and since you hear John saying that Clinton is picking up Sanders' voters faster than candidate Obama picks up Clinton supporters.

QUINN: Right and, you know, there was a lot of conversation earlier on that the Sanders' voters would never move ...

COOPER: Right.

QUINN: ... to Clinton's campaign. And I really knew that wasn't going to be the truth because having been a Clinton supporter eight years ago, I knew the incredible intensity of Clinton voters not wanting to move to Obama, and they did, so I'm very heartened by these numbers and I'm not surprised by them. And I think they're going to speak to things moving forward and us picking off some of those voters we might be losing to the libertarians or Jill Stein at the moment. COOPER: Patrick, I want to you ask about Senator Elizabeth Warren on the trail with Secretary Clinton, but let's play some video from that stop.


SEN. ELIZABETH WARREN, (D) MASSACHUSETTS: He cheered on the 2008 housing crash, because he could scoop up more real estate on the cheap. And he cheered on students desperate enough to sign up for his fake university so he could bleed them dry and turn a profit for himself.

What kind of a man does that? What kind of a man roots for people to lose their jobs, to lose their homes, to lose their life savings? I'll tell you what kind of a man. A small, insecure, money grubber who fights for no one but himself.


COOPER: It's interesting Patrick to see them on the stage together. They clearly they haven't had the warmest relationship over the years, to say the least.

HEALY: No, no. I mean Hillary Clinton has a long memory and Elizabeth Warren said some pretty rough things about her years ago. But basically two of Hillary Clinton's big insecurities, how she is with money and how she is sort of with banks and powerful allies, that Hillary Clinton basically wasn't the kind of person who would stand up for working families, which is now the whole message.

If they put that behind them Elizabeth Warren is absolutely Hillary Clinton's best weapon right now along with the Bernie Sanders tries to sort of stay in the background, she's able to start consolidating the party through Elizabeth Warren. I think both of them probably know that Elizabeth Warren is not going to be her vice president, but she's a great -- she's proving herself a great attacker.

COOPER: Joe, I mean if Trump really wants to win over Sanders supporters, is him going after Elizabeth Warren the way he does and continues to do and did today, is that it was?

BORELLI: Well I'm not sure if that matters terribly much. When you think about the type of Sanders' supporters he's trying to win over, he's not trying to win over the activist for the young people and environmentalist type, he try to win over the blue collar. That's why Clinton was in Ohio.

And I think that John just mention about that ABC poll which was bad for Trump, was that he's winning amongst independents. That's a good sign. Clinton spent $130 million buying ads in swing states, including Ohio. And she's tied in some polls, this is somewhat concerning for Clinton and hat's why she was there today and where the biggest problems her whole speech today was about riding the ship.

Well I got news for her, she was that were in the driver's seat, the highest echelons of our government, senator for eight years before that. She's the one who wronged the ship in the first place. I don't think she's doing a good job of appealing to those voters in Ohio especially when you could bring up something like NAFTA.

COOPER: Tara, I mean for all the, you know, a lot of critics who say Donald Trump stumbled, do you look at this battleground states, I mean the numbers are pretty close.

SETMAYER: Yes it's amazing. That goes to show you what a terrible candidate Hillary Clinton is, that she wouldn't be able to pull ahead. I mean the national polls don't mean anything. It's what the battleground states matter as we, we don't have a national election. Something else that's bad for Clinton in the ABC poll that came out over the weekend, in a state like Michigan, they did a whole story about people in Michigan who they don't particularly care for Hillary Clinton they voted for Bernie Sanders on economics and they said hey, you know what, we're scared to death of Donald Trump, we don't know what he's going do but at least it will be something different and his going bring back jobs back.

[20:50:14] That is those voters in places like Michigan.

COOPER: Right.

SETMAYER: Those are the voters that Hillary Clinton is going to have a tough time getting and that she should be worried about.


COOPER: Just ahead, tonight the full extent of the damage from deadly floods in West Virginia coming into focus. It is a truly devastating sight as the state braces for the possibility of even more flooding.


COOPER: More breaking news coming in tonight. There are flash flood warnings for a big swath of West Virginia with heavy rain in the forecast. The last thing they need. West Virginia of course reeling from what the governor says is the worst flooding he's ever seen in his state.

At least 23 people confirmed dead. With the waters now receded, the wreckage left behind is very clear, 1,000 homes damaged or destroyed. President Obama has declared a state of disaster area and the worst- hit locations, many barely got out of their homes alive. Martin Savidge reports.


MARTIN SAVIDGE, CNN CORRESPONDENT: If heartbreak had an address, you would find it on Mill Hill road in White Sulphur Springs.


[20:55:00] SAVIDGE: First came the flash flooding. Then, came the flames. Literally, hell and high water. KIMBERLY LESTER, DAUGHTER OF BELINDA SCOTT: My family home which is right here right now was standing up there with that little red wagon is. That's the front porch. My grandmother's home is on the other side near where the truck is. And my great uncle's home is kind of right there.

SAVIDGE: Kimberly Lester says the water rose so fast, her mom and other relatives became trapped in their own attics. When the houses started floating, the gas lines broke.

LESTER: Her house filled with natural gas and it exploded and she's such a strong woman, she made it out of the house and ended up in that tree.

SAVIDGE: Despite burns over 70 percent of her body, Belinda Scott, hung on for six hours.

ASHLEY SCOTT, DAUGHTER-IN-LAW OF BELINDA SCOTT: Honestly, I thought we were going to die. I thought my children were going down to drown.

SAVIDGE: Ashley Scott, her husband and two children were trapped in the attic next door. She couldn't see much. She didn't have to.

SCOTT: We heard everything. We heard people screaming. We heard people saying that there were children floating down the street. We heard them screaming for help.

SAVIDGE: When her mother-in-law's house exploded, they felt it.

SCOTT: We heard they're screaming for help. And I knew right off it was her.

SAVIDGE: Loved ones in sight and sound of one another, separated by the deadly, racing water around them. Help eventually did come. Belinda Scott was rushed to a nearby hospital where three days later, she died.

So what are we doing here?

LESTER: We're looking for anything that's left, just a little piece of hope, something to connect with my mother.

SAVIDGE: Kimberly's family spent the day sifting through the ashes of all their homes. There were 11 houses on Mill Hill road. Only three still stand.

In the tree where Belinda held on, her grandson, a U.S. marine, placed an American flag, her family wear ribbons with the image of a bee in memory of her love for sewing, so much loss, so much suffering, so much heartbreak on just one single street.


COOPER: And Martin Savidge joins us now. That is just an incredible report and just that one street that the tragedy on that street. I mean are the -- is that family planning on rebuilding at this point? Are they planning on staying?

SAVIDGE: Yeah, it's a little too early they try to asses. That is clear that they're all still very much in shock. They got to deal with some other things first. Number one, they've got hospital bills and they've got a funeral for their mother, they've got a plan and I'm not sure how they're going to cover those and then of course they've lost everything.


SAVIDGE: Then on top of that, there is this warning about the weather.

COOPER: Yeah, that's why I was going to ask, what's the report?

SAVIDGE: Well, I mean we're under flash flood warning. It's not a watch, it's a warning. So there are already reports of renewed flooding.

Now, not here, but in Rainelle and there's been a call for boats there. This is scenario, that have flooded last weekend there are apparently indications it's flooding again.

Here in White Sulphur Springs, we haven't seen that, but it's going to be another nervous night, another anxious night, definitely, tomorrow, the forecast hopefully a little brighter and a little better. Anderson.

COOPER: Let's hope to get some help soon and some break in the weather. Martin thanks so much.

Much more ahead, on the next hour, the breaking campaign news Donald Trump, backing way completely from his proposed Muslim ban. The question is, it's a strategic pivot or is it a flip-flop and what message does it send to his supporters? We continue after a short break.