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ERIN BURNETT OUTFRONT

Brexit Turmoil Deepens, Markets Panic; Trump, Clinton Trade Barbs Over Brexit; Sources: Trump to Drop Muslim From Ban; Warren Appears at Rally with Clinton Amid V.P. Buzz; Clinton on Earning Trust: "I Have Work to Do"; Boeing 777 Catchers Fire with 241 People Aboard. Aired 7-8p ET

Aired June 27, 2016 - 19:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[19:00:11] ERIN BURNETT, CNN ANCHOR: OUTFRONT next, breaking news. The market plunge, the Dow down in nearly 900 points in two days as the British government is in shambles tonight.

Plus, more breaking news. Donald Trump changing force one of his most signature proposals, his ban on Muslims.

And the attacks getting nasty tonight. Trump fighting back after Hillary Clinton and Senator Elizabeth Warren team up against him. Let's go OUTFRONT.

And good evening. I'm Erin Burnett. OUTFRONT tonight, the breaking news. A global panic, the fallout deepening from Britain's decision to leave the European Union. Markets round the world hemorrhaging money today. The Dow down another 260 points. That loss is now nearly 900 in just two days, trillions in dollars gone just like that. Another victim. The UK's one stellar credit rating now cut by Standard & Poor's.

And on a campaign trail, Donald Trump, Hillary Clinton battling over Brexit, Clinton slamming Trump today.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESUMPTIVE PRESIDENTIAL CANDIDATE: When Britain voted to leave the European Union, he crowed from his golf course about how the disruption could end up creating higher profits for that golf course. He's in it only for himself.

(END VIDEO CLIP)

BURNETT: Trump fired back on Twitter, quote, "I called Brexit. Hillary was wrong. Watch November." We'll have more on the political fallout here in the U.S. in just a moment. But first, the global market plunge.

Phil Black begins our coverage OUTFRONT. And Phil, where you are, fear ruling the day today.

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Absolutely, Erin. Here on the markets around the world particularly in London where stocks tanked, still the British pound sterling hit a 31-year low against the U.S. dollar. As you've mentioned, that crucial credit rating by S&P, AAA rating knocked down by two notches. But those financial indicators really are just reflections of what people are feeling on the streets. Enormous fear, uncertainty about what happens next as people, realize there are so many important issues regarding this country that are now uncertain.

There doesn't appear to be a plan. The British government has said that at the moment it's not going to trigger article 50. This is the official mechanism beginning the process of withdrawing Britain from the European Union that gives a two-year timeframe for the negotiations that must follow. The government says it's waiting until the ruling conservative party chooses a new leader who would be a Prime Minister after David Cameron resigned following the referendum that we're not going to know who the new leader of this country is probably until around September at the earliest.

This has got many people here feeling what's been branded as buyer's remorse. These people who voted to leave but now regret doing so for various reasons. They did not think that the consequences would be severe. They did not think it was possible that the leave vote could win but they were wrong. In addition to that, three million people have signed the petition that on the parliament's website, asking for a do-over. The who was still the prime minister for the moment, David Cameron says that can't happen. The results for the most must be respected regardless of all the division within this country at the moment -- Erin.

BURNETT: All right. Phil Black, thank you very much. And a good move there by David Cameron. You have got to stick by a vote or else just imagine what would happen to democracy.

And now to the U.S. campaign trail. Sunlen Serfaty is OUTFRONT there. Sunlen, both Clinton and Trump think Brexit could actually help them, and in a big way.

SUNLEN SERFATY, CNN CORRESPONDENT: That's right, Erin. And this is becoming quickly a major flash point between them, both Donald Trump and Hillary Clinton are framing this in advantageous ways, they think to their own campaign. We saw Hillary Clinton came out this weekend and today really drilling down that she believes that Donald Trump's response to the results make him unfit to be president. She's painted it as a volatile response. And in comparison, that hers she believes is the steady hand at the wheel. The closing campaign is out with a cable, a national cable TV ad, painting this as such. Here is a small part of that ad.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Every president is tested by world events. But Donald Trump thinks about how his golf resort can profit from them.

DONALD TRUMP (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: When the pound goes down more people are coming to Turnberry.

UNIDENTIFIED FEMALE: Stocks are tanking around the world.

TRUMP: Sprinkler system to the highest level.

UNIDENTIFIED FEMALE: He's talking about his new sprinkler system.

UNIDENTIFIED MALE: In a volatile world, the last thing we need is a volatile president.

(END VIDEO CLIP)

SERFATY: And Donald Trump and his campaign has responded to that ad really in comparison, saying that the frame is just wrong, they believe. Donald Trump saying that Hillary Clinton, he believes, has bad judgment. Her campaign before the vote was saying that she supported the UK remaining in the union. So, Donald Trump saying that shows her bad judgment and he took to Twitter to say as such.

Saying, quote, "Clinton got Brexit wrong. I said leave will win. She has no sense of markets and such bad judgment." So almost bragging there, a bit, Erin, that he predicted the results in some capacity. Now Donald Trump has not had a formal campaign event since he got back from his trip abroad. But tomorrow he will be in Pittsburgh -- outside of Pittsburgh, Pennsylvania his first big campaign event since that. This will be billed as an economic rally. I suspect he will bring this up.

[19:05:14] BURNETT: All right. Necessarily, well, I know it's going to be a big economic speech perhaps tomorrow. Thank you very much, Sunlen.

And OUTFRONT now, former Trump campaign manager Corey Lewandowski, Clinton supporter Basil Smikle. Peter Costa, floor trader of the New York Stock Exchange. And Jonathan Martin, a "New York Times" political correspondent, contributor to CNN's Inside Politics.

Peter, let me start with you. Because you hear Phil Black is reporting from the ground in the UK. And now we see a nearly 900- point market drop. People are scared.

PETER COSTA, NYSE FLOOR TRADER: Well, it's the uncertainty, and going into unchartered territory any time you get a situation like that, people are going to try to take some of their risk off and not be exposed to whatever could potentially happen going forward. You know, this is a place we've never been before. So, you know, I think that it's probably a smart thing for people to lighten up a bit and not be fully exposed. Let's see what happens.

BURNETT: It's a place people have never been before, Jonathan which I think is an interesting point. Hillary Clinton, Donald Trump, both of them now trying to seize this as a positive.

JONATHAN MARTIN, CNN INSIDE POLITICS CONTRIBUTOR: Yes. I mean, I think if you're Hillary, she's looking at it as uncertain times, turbulent moment here on the world stage and the assumption from her camp that people will sort of rush to safety, that they will seek somebody who was a more stable, you know, familiar choice. The Trump, you know, assumption, obviously, is that these times call for real change and that nobody is going to present that change like him, that Hillary is kind of the face of the establishment, that people are obviously deeply unhappy with right now. And so, they're both putting down wagers on very different outcomes of this.

BURNETT: And so, you know, Clinton's line is all about, you know, Trump has made Brexit all about himself, that his golf course is going to make more money. Here is more of what she said today in a speech.

(BEGIN VIDEO CLIP)

CLINTON: When Britain voted to leave the European Union, he crowed from his golf course about how the disruption could end up creating higher profits for that golf course even though within 24 hours, Americans loss $100 billion from our 401(k)s. He tried to turn a global economic challenge into an infomercial.

(END VIDEO CLIP)

BURNETT: Just to be clear, Corey, here is exactly what he said. So, let's not take her word for it. Here is what he said in Turnberry.

(BEGIN VIDEO CLIP)

TRUMP: Look, if the pound goes down, they're going to do more business. You know, when the pound goes down, more people are coming to Turnberry, frankly. And when the pound has gone down.

(END VIDEO CLIP)

BURNETT: Does she have a point? Should he not have been on that day saying, it's good for me, people are going to come to Turnberry?

COREY LEWANDOWSKI, FORMER TRUMP CAMPAIGN MANAGER: No, I think what he is trying to say is, he's an actual businessman. He just took 200 million pounds, and invested it into Europe. And specifically into that golf course. And he went over there to support his son who rebuild that golf course and spent one day over there. And what he said was, you know, Americans are going to come over here. The dollar is going to be stronger than it was just a few days ago. And if you are going to be a tourist, this is obviously a great place to come.

And what we're talking about is someone who understands the international business community. Hillary Clinton has never done business internationally. And if she had, she would have had a finger the pulse, should have been able to predict that the Brexit vote was going to go in the opposite direction that she had said it was going to. And the difference is, she is running on foreign policy credentials as a former secretary of state.

BURNETT: OK. So, let me just let -- Basil, do you buy the excuse?

BASIL SMIKLE, EXECUTIVE CHAIRMAN, NEW YORK STATE DEPARTMENT: No. And the juxtaposition couldn't be more clear. Donald Trump's first response was about his pocket. Hillary's response was about how this would impact the lives of American families. And that, to me, is the real sort of test of leadership. Like how -- what is your initial response like? And I think to Jonathan's point earlier, as we look at this, you know, the Brexit vote was led, in part, by a bombastic former mayor of London.

A lot of far right groups, sort of inflated economic anxiety and xenophobia. And I think this would be a cautionary tale for Americans in this election as well. If a lot of Brits are waking up saying, maybe we shouldn't have made this vote, I'm hoping that here in the U.S., there are a lot of Americans that won't make an impulsive vote and will think about as the kind of stability that they need as leader.

BURNETT: I mean, Corey, you know, then there's the tweet that we were saying. I call Brexit. Hillary was wrong, is it right to be celebrating? I mean, she has a point. A lot of Americans just lost a lot of money.

LEWANDOWSKI: Well, they did. But I think what it goes to is his vision for the country, his vision of being able to predict things that are going to come in the future. Now, this is one of many examples. 17.4 million people went to the ballot and made binary decision, they choose to get out of the European Union. And the reason for that is because of the inability for those locals to control their own destiny. I think it's very similar to what's taking place here and what has taken place in Washington the last 30 years. People want fundamental change. People want a difference, you know, whether it's a blue collar a person whose real wages are less than what they were 20 years ago --

BURNETT: OK.

LEWANDOWSKI: They want something different. I think that's what Europe was doing.

BURNETT: OK. But what they've seen in the past two days Peter is a nearly two thousand-point drop in the Dow.

LEWANDOWSKI: Yes.

[19:10:14] BURNETT: All right. That's a big deal. And senior Clinton adviser said, what Americans need when it comes to November is not what Corey said, but they need a steady hand in times of uncertainty not a reckless egomaniac. They were referring to Donald Trump -- that's what they say he would be. What would markets do? Donald Trump selected. I mean, I had people, Mark Cuban say they're going to go down 20 percent or more. I have had Bill Gross saying no, they're not going to go down at all. What is that?

COSTA: You know, one of the things she really have to be think about before the election is, what are the platforms and what are they going to -- what is each of these candidate going to bring to the table? Is it, you know, tax reform, you know, reforming ObamaCare? I mean, there are a lot of things that really mean a lot to American people. And you really haven't gotten a sense on either candidate yet. What they're going to bring comes November.

BURNETT: So, there's Donald Trump wins, markets tank, fear mongering or something to it?

COSTA: Well, if markets tank after Donald Trump wins, I think it is fear mongering, but I don't see that happening.

BURNETT: You don't see it happening?

COSTA: No. I don't see that happening. I think that either candidate is, they will be some sort of upheaval short term after the election irregardless of who wins. And markets will stabilize and the economy is what matters. Earnings matter. You know, growth prospects, so on and so forth, the same story going that's been on for 150 years will continue in November.

BURNETT: But even what you're saying right now, Jonathan, that's good news for Donald Trump?

MARTIN: Absolutely.

BURNETT: Because he's not feeding into the OK, it would be horrible, which is what obviously the Clinton camp wants you to think.

MARTIN: Yes. I was talked by the fact that after he got the nomination last month there was no real impact at all in the markets.

UNIDENTIFIED MALE: Not one bit.

MARTIN: And so, look, I think it could be different, nomination versus election, now is a different story. But it's striking watching him because this should be a golden opportunity for him. Here, the British voters have gone to other polls in sort of, you know, stated their independence and it gets to the horrible, which his own message, which is his sort of, you know, nationalistic appeal of doing what's right for America.

BURNETT: Make America great.

MARTIN: Right. America first. But yes, instead of focusing on that, his -- to talk about, his own comments, his own rhetoric and his own financial interest. It's just -- it's striking that he has these opportunities and is prosecuting --

BURNETT: Not seizing.

MARTIN: -- in a way that would be helpful to his campaign --

BURNETT: All right.

MARTIN: He indulges in, you know, different things.

BURNETT: All right. We'll hit pause there for just one moment.

Next breaking news, Trump shifting his position on the Muslim ban. You heard me right. A new policy and a new target tonight.

Plus, Hillary Clinton hitting the campaign trail with Senator Elizabeth Warren together for the first time.

(BEGIN VIDEO CLIP)

CLINTON: You want to see goofy? Look at him in that hat. I do just love to see how she gets under Donald Trump's thin skin.

(END VIDEO CLIP)

BURNETT: Will Clinton's attack dog keep Trump out of the White House? And the Boeing plane bursting into flames today, hundreds of passengers were on board, what you see right there, trapped in fear. That story later this hour.

(COMMERCIAL BREAK)

[19:19:42] BURNETT: Breaking news. Donald Trump says he's dropping the Muslim ban. The campaign adviser telling CNN that Trump is about to release a new policy member, a memo, memo, sorry, in which he will no longer call for a ban on Muslims specifically. Instead he's calling for ban on people coming from countries with known terror links.

Phil Mattingly is OUTFRONT. And Phil, frankly, this is a major shift. President Obama and himself has put all kinds of these restrictions and for countries like that.

PHIL MATTINGLY, CNN CORRESPONDENT: Yes. No question at all, Erin. And you think about Donald Trump's campaign. The two things that are probably most synonymous with it are building a wall on the Mexican border and this ban on Muslims entering the United States, something Donald Trump proposed too much funfair in December of last year and has really been one of the driving forces behind his support throughout the Republican primaries. You noted, advisers now working on a policy memo to start ratcheting that back. Perhaps another sign that at least Donald Trump's campaign is pushing towards the general election.

(BEGIN VIDEOTAPE)

MATTINGLY (voice-over): Donald Trump tonight shifting his focus back on the general election, scheduling a major economic speech Tuesday in Pennsylvania, a swing state he has pledged to win in November.

TRUMP: We're going to win Pennsylvania in the general.

MATTINGLY: The billionaire also holding a second event Tuesday in another key battleground state. Ohio. Trump, from staffing to fund- raising to strategy, moving quickly to get his campaign on track for the general election. Amid continuing concerns from the highest levels of the GOP.

SEN. MITCH MCCONNELL (R), MAJORITY LEADER: I think there's no question that he has made a number of mistakes over the last few weeks. I think they're beginning to right the ship.

UNIDENTIFIED MALE: I didn't hear you say whether you thought he was qualified.

MCCONNELL: Look, that ought to be up to the American people to decide. MATTINGLY: Those concerns bolstered by poll numbers that are

consistent on two fronts, a national lead for Hillary Clinton and Trump surpassing Clinton when it comes to unfavorable ratings. With the Republican convention rapidly approaching, Trump continues to struggle to unite the party telling the New York Times, Texas Senator Ted Cruz and Ohio Governor John Kasich will not get convention speaking slots if they don't endorse the New York billionaire.

UNIDENTIFIED MALE: Use of force is always and only a last resort.

UNIDENTIFIED MALE: I would bomb the (bleep) out of them.

UNIDENTIFIED MALE: And moves to halt efforts by Cruz and Kasich supporters to block Trump from securing the nomination in Cleveland.

PAUL MANAFORT, DONALD TRUMP CAMPAIGN MANAGER: Our campaign is organized. We are ready to have a good convention and we're confident that we're not behind the Clinton campaign.

(END VIDEOTAPE)

MATTINGLY: Now, Erin, it's worth noting that a lot of top Republican officials, including Speaker Paul Ryan among them, have advised Donald Trump to move away from this idea that the Muslim ban. They've been opposed to it from the very beginning. Now it looks like even Trump's internal advisers have started to suggest that he do is actually starting to happen. But one thing when you talk to Clinton officials, they've made it very clear.

They are not going to let him move off this initial position. As one person already sent me a Democrat e-mail linking to the initial statement which still listens on line making very clear Donald J. Trump, quote, "is calling for a total and complete shutdown of Muslims entering the United States." They don't want him to move off that position and they are going to continue hitting him on it no matter where he moves himself over the next coming weeks and months -- Erin.

BURNETT: Interesting point. All right. Thank you very much, Phil. And my panel is back with me, along with the man leading the Trump delegate revolt at the convention, Steve Lonegan, advising them who are planning the revolt against Trump.

All right, Corey. Okay. He came out with the Muslim ban. And now he's dialing it back and saying, it's not a Muslim ban, it's a ban on certain countries. You hear what Phil is saying. A lot of his core based support, they don't want him to change on this. This has been a core part of his platform. Can he ratchet this back without hurting himself with his base?

LEWANDOWSKI: Here is what he said. And if you look at that statement on December 7th. He said, until we can find out what is going on. What that means is an immigration policy that allows us to find out who is actually coming into our country and then you can do so legally. So, what we need to do is we need to revamp our policies of immigration coming in. What we see right now, I've spoken to many governors about this, is that our country is accepting Syrian refugees, we're putting them into their states.

We don't know who they are, we don't know which states they're going into, we don't know which cities they're going into and the governors aren't being told what to do. And there is no vetting process taking place. And that's the concern that Donald Trump has. It's not just about a religion. It's about the vetting process of allowing people to come in. Here is one classic example. The woman who went and committed Jihad in California.

BURNETT: In San Bernardino.

LEWANDOWSKI: Came in to a K-1 visa. Okay? She married a U.S. citizen allowed her to come into this country. The State Department did two background checks on her but was unable to find any type of information because they were precluded by law of looking at her social media accounts. I could have gone and looked at her Facebook page.

BURNETT: OK.

LEWANDOWSKI: This is the problem with the system. We need to have a better system.

BURNETT: You have a point there. Although, it's unclear at that time whether it had anything on social media when they actually looked. So, I know, there's still a question about that. But Corey to the heart of this, you're trying to say this isn't a shift. But it is a shift, okay? Here is what he said in December, the rest of the sentence.

(BEGIN VIDEO CLIP)

TRUMP: 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.

(CHEERS AND APPLAUSE)

(END VIDEO CLIP)

BURNETT: You're right about the what the hell is going on part but the Muslim part was pretty darn clear, it was a ban on Muslims, not on people coming from sponsoring, country sponsoring terror, it was but ban on Muslims.

LEWANDOWSKI: That is true. But look, we have a problem with illegal immigration in this country right now. He says he's going to build a wall to stop the illegal immigrants from coming in from Mexico. What we need to do first and foremost is to protect the systems of our country. That's the fundamental job of the federal government. Everything else is extra.

BURNETT: OK.

LEWANDOWSKI: But we can protect --

BURNETT: Corey's not asking my question because there's kind of no great answer for it.

LEWANDOWSKI: If we don't protect our own citizens, what kind of government do we have?

BURNETT: So, Steve, is this going to actually help someone like you?

STEVE LONEGAN (R), ADVISING ANTI-TRUMP DELEGATE: No.

BURNETT: If he's not going to make it about Muslims anymore, someone like you should say, I'm more likely to get on board.

LONEGAN: Well, no, actually that's not true. He has failed to galvanize the Republican Party. You don't fight conservatives behind them. Now what he has done is he has smacked his hard core base in the head. Because these people are counting in this position. And what's going to happen now is he's going to demoralize his own base. So now you have a double pronged sword, double-edged sword. You have at one side the Republican Party 70 percent -- 77 percent Republicans support him. He is dropping in the polls.

And now he is demoralizing his own base that he needs more than anything. You know, the key to winning an election and Corey knows this, he has been a campaign manager is to get your troops marching. And right now those troops are sitting back, and wait a minute, what happened to the Donald Trump that went to all to all those rallies for? And what about the wall? If he's going to back off on the Muslim ban, what about the wall? What's in that audiotape of the "New York Times"? That is why Erin, you're seeing this explosion of people saying, Donald Trump is down 12 points in the polls, he is going to take down the Republican Party. He is not -- this apart. The question I have for Reince Priebus and the Republican Party leadership is, what's the tipping point? Twelve points? Fifteen, 18, 20, or what point --

(CROSSTALK)

LEWANDOWSKI: Erin, Erin, you have to let the battleground states is what it comes down to. The last battleground is not true. The same New Hampshire and the Franklin Pierce polls that came out, he's dead even with Hillary Clinton. If you look at all, if you look at the Real Clear Politics average in all those battleground states, he's within the margin or ahead in all of those states. So, the question is, Hillary Clinton has spent millions of dollars running ads to those battle ground against Donald Trump so far. He hasn't spent one dime in Ohio, and in Pennsylvania. Look, either even or ahead in Pennsylvania right now. A state that --

BURNETT: But obviously, he's feeling the heat --

(TALKING OVER EACH OTHER)

Back off the Muslim ban.

[19:24:21] SMIKLE: Let's get back to this issue. You made -- he may go back on his statement about Muslims. Let's also remember that he said that he was going to institute some kind of test, number one. Number two, you may forget what he said but you're not going to forget how you made you feel. How he made people feel is that this man is unstable and unfit to be president of the United States. If he is talking about banning --

BURNETT: That's not true.

SMIKLE: -- entire religious groups from this country.

LEWANDOWSKI: Do you know how he made me feel? Safe. Safe. What Americans want to be is safe.

SMIKLE: Let me go back to the Obama point.

LEWANDOWSKI: If we can't live in our communities because we're so afraid that the next door neighbor is about to commit a terrorist attack and we can't turn them in for fear of being called a racist or a fear of being accused of something --

UNIDENTIFIED MALE: I don't think that's true. That's exactly what happened in San Bernardino.

SMIKLE: What's this point about President Obama and the Syrians coming into this country? The President actually has a very, very rigid vetting process for the Syrian refugees coming into this country. Tens of thousands have been -- have asked for refugee status. And there are actually a small percentage of them that they actually have gotten that status. So, there is a strong vet. There is a strong vet.

BURNETT: Talking to a leader in the Middle East they do acknowledge, there is kind of no ways to do a thorough background check of many Syrian refugees. Not saying that they're terrorists but because these papers and documentation just doesn't exist. But Jonathan Martin, this key question here, right, of whether it's going to help him to back off this ban, with the independence, the establishments and the Paul Ryans of the world, Mitch McConnells of the world will hurt him with his base, as you're saying, demoralizing his base, Steve, which way does it go?

MARTIN: Well, the incentives in a primary, especially for Republicans, are so vastly different than a general election. And this is the challenge that he has now. Is that this played really well in the primary. But he has pressure now from his own party to move off this issue that he really has no choice.

But in doing so, he does risk turning off his own base. Look, I think the fact is that he's going to be seen as a hardliner on immigration. Hillary is going to sort of attack him as one. He's going to bring up the issue over and over again. But he does risk raising the question with some of his really hard-core supporters about why he's doing this. If you look at the exit polling in every state during the primary, this proposal was off the charts popular.

BURNETT: Yes, it was. Yes, it was.

MARTIN: The base of the party really, really likes this. So, the fact that he's backing off but now does tell you that someone has gotten to him and said, look -- it doesn't work.

BURNETT: Quick final point, does this have something to do with you leave and you wouldn't have recommended him to do this and now --

LEWANDOWSKI: What you know is that Donald Trump base supporters are not going anywhere. Sixteen candidates in the primary tried to take them away from him and they couldn't do it. What we know is, people want fundamental change in Washington. That is the difference here. The base wants fundamental change. The outside -- people haven't had a voice for 30 years want Donald Trump to go in and change the way Washington works because it's been broken for way too long.

BURNETT: All right. Pause for a moment.

Next, Donald Trump unleashing a new attack on Senator Elizabeth Warren not his favorite person. Tonight he is calling her not only Pocahontas but a racist. Plus, Hillary Clinton's big admission.

(BEGIN VIDEO CLIP)

CLINTON: A lot of people tell pollsters they don't trust me.

(END VIDEO CLIP)

BURNETT: So, what is she going to do about that?

(COMMERCIAL BREAK)

[19:31:28] ERIN BURNETT, CNN ANCHOR: Tonight, attack dog Elizabeth Warren slamming Donald Trump, appearing with Hillary Clinton for their first joint rally together in the 2016 race. The question is, will there be many more? Could she be the V.P.?

Suzanne Malveaux is OUTFRONT.

(BEGIN VIDEOTAPE)

SEN. ELIZABETH WARREN (D), MASSACHUSETTS: I'm with her. Yes, her.

SUZANNE MALVEAUX, CNN CORRESPONDENT (voice-over): Hillary Clinton and Elizabeth Warren joining forces today for the first time in the campaign.

WARREN: Donald Trump says, he'll make America great again. It's right there. No. It's stamped on the front of his goofy hat.

You want to see goofy? Look at him in that hat.

MALVEAUX: Today's event in Ohio, fueling speculation that Warren could be selected as Clinton's running mate, the Massachusetts senator using the opportunity to unleash a blistering critique of Donald Trump.

WARREN: What kind of 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.

MALVEAUX: And using Trump's controversial comments throughout the primary season against him.

WARREN: Donald Trump calls African-Americans thugs, Muslims terrorists, Latinos rapists and criminals and women bimbos. Hillary Clinton believes that racism, hatred, injustice and bigotry have no place in our country.

MALVEAUX: Clinton voicing appreciation for Warren's tenacity.

HILLARY CLINTON (D), PRESUMPTIVE PRESIDENTIAL CANDIDATE: I do just love to see how she gets under Donald Trump's thin skin.

MALVEAUX: Clinton is hoping that Warren will also help her win over more progressive voters in the Democratic Party, who backed Bernie Sanders during the primary, the former secretary of state today striking a populist tone.

CLINTON: We must have an economy that works for everyone again, not just those at the top.

MALVEAUX: Clinton and Warren today sounding very much united.

But that has not always been the case. Warren remained neutral throughout the Democratic primary fight, only endorsing Clinton earlier this month.

And in a 2004 interview with PBS, she criticized Clinton's position on a piece of bankruptcy legislation.

WARREN: She has taken money from the groups. And, more to the point, she worries about them as a constituency.

MALVEAUX: But no signs of any past conflicts between the two women today, as Clinton hopes with Warren's help she can block Trump from the White House.

(END VIDEOTAPE)

MALVEAUX: I talked with several campaign operatives who told me they were watching closely today the body language between these two dynamic female leaders, watching closely how the crowd would respond and, of course, mindful of whether Warren would overshadow Clinton. From the reaction of the audience, they told me the Clinton/Warren pairing actually did not disappoint them.

BURNETT: All right, Suzanne.

My panel is back with me now. Also with me now, our political commentator, op-ed columnist for "The New York Times", Charles Blow.

Basil, let me start with you, though -- is this really a dream team for the Democrats? Certainly for the Bernie Sanders' supporters.

BASIL SMIKLE, HILLARY CLINTON SUPPORTER: I think this is a great ticket. Look, it's not disqualifying that Elizabeth Warren might be her V.P. choice. This is part audition. Also, as people are talking about body language and crowd reaction and so on. I think part of the issue, too, is as long as Bernie Sanders is out there, sort of doing his thing, that we need somebody in there that's going to be engaging supporters that Bernie may have had, and others that may have been on the fence.

I don't think there may have been many. But what you saw out there was a tremendous amount of energy and excitement for a great ticket.

[19:35:00] BURNETT: I mean, they call her a progressive icon for a reason. They like her on the left.

JONATHAN MARTIN, THE NEW YORK TIMES: I don't think Hillary's donors here in Manhattan would think it's a dream ticket. That's for sure.

SMIKLE: I don't think that's true. I mean, look, people vote for the top of the ticket, right? I think she has demonstrated particularly when she was in the Senate and for full disclosure, I worked with her in that time, that she got to the Senate. There was real consternation if she would be able to work with folks on the right. She did. A lot of Republicans said we actually worked with her and she put her nose to the grindstone and worked and created good legislation.

BURNETT: There's that history, Charles. There's also to the point that Jonathan is raising. You know, you had Hank Paulson, former treasury secretary under George W. Bush, come out this weekend and say, not only will he not support Donald Trump but one of the few people that actually go out on the limb and not take the wuss answer, which is, I don't know, I'm going to write someone in, and say "I'm going to vote for Hillary Clinton."

I have not talked to hank Paulson but I would bet he would not vote for Hillary Clinton if Elizabeth Warren was on the ticket.

CHARLES BLOW, CNN POLITICAL COMMENTATOR: Right. But how many Hank Paulsons are there in the world?

BURNETT: But a lot of independents may feel that way.

BLOW: No, there are only a few Hank Paulson.

BURNETT: OK, he has a personal issue with Elizabeth Warren.

BLOW: Right, he has personal issue and his kind of stake in the kind of universe -- the kind of economic universe --

BURNETT: Financial system.

BLOW: -- the financial system, is very singular.

You know, I look at this ticket -- not -- supposed ticket. It may be a little too early. In this moment, it is great for Hillary Clinton. I mean, you can allow someone to play the kid in the room as long as you have adults in the room. So, as long as there weren't terrorist attacks happening, as long as there weren't, you know, the 600-point drops on the Dow because of the Brexit, it was OK for people to say I like this guy, Donald Trump. He's punching up, he's hitting the establishment. It felt OK because there were people -- nothing really horrible was happening. Everything was relatively coasting.

Now that you have actual things happening, you want to know that the person you have been rooting for actually could shift gears and also be an adult. Donald Trump has basically failed at both turns. He failed in --

BURNETT: But how does Elizabeth Warren -- to the Elizabeth Warren point, how does she help with that?

BLOW: I think what we're missing is the Hillary Clinton part of this, which she is at this point, running a brilliant campaign. She is stepping into that void that Donald Trump has left by turning attention to him. She is being a very -- all the things that we used to think about as negative for Hillary, that she's kind of professorial, that she's kind of stiff, that actually works when something actually --

BURNETT: Trying to play into her favor?

BLOW: Having a fire brand stand next to her it doesn't overshadow her now.

BURNETT: Which is an interesting point.

And, Corey, fire brand, I mean, Elizabeth Warren goes after Donald Trump like nobody could, except for a female Donald Trump, which she kind of is in this regard. Here are some of her best lines.

(BEGIN VIDEO CLIP)

WARREN: Donald Trump is a proven businessman, a proven failure.

You want to see goofy? Look at him in that hat.

He will crush you into the dirt to get whatever he wants.

Every day, it becomes clearer, that he is a thin skinned, racist bully.

You, Donald Trump, are a total disgrace.

(END VIDEO CLIP)

BURNETT: That's pretty effective.

COREY LEWANDOWSKI, FORMER TRUMP CAMPAIGN: Let's talk about Elizabeth Warren, right?

Elizabeth Warren lied her way into Harvard University saying that she was American-Indian, a Native American. And then she says, well, that's a folklore I've always been told. She took a job away from someone else, because she's affirmative action to get a job at Harvard University.

BURNETT: That's why he called her Pocahontas.

LEWANDOWSKI: What has been her single accomplishment since she's been in the U.S. Senate? Nothing. She's been a terrible U.S. senator. If she wasn't from the state of Massachusetts where it's so liberal, she got a safe seat, she'd be thrown out of office summarily.

You know, what she -- and she's such a hypocrite. She criticized Hillary Clinton for taking $40 million of Wall Street money, refuses to endorse her in the primary process until just now, the only female Democratic senator to not endorse Hillary Clinton --

BURNETT: Fair.

LEWANDOWSKI: -- until the very end, and she appears on stage as best friends, best buddies. It's ridiculous. This is like twins --

(CROSSTALK)

BURNETT: Corey does make a convincing case in that regard.

MARTIN: Contrived, they're not --

BURNETT: You stand next to the person you hate and pretend you're best friends.

MARTIN: It's a marriage of convenience because, look, you know, until Bernie comes out in a more fulsome way for Hillary, she can sort of fill that void and help bring the progressives home. Is she going to be the V.P. nominee? Probably not. Can she be an effective surrogate? Absolutely, you saw right there on TV that she can be.

But if Hillary Clinton is running this campaign as somebody that can find consensus in American politics after sort of Washington gridlock, as a steady hand at the tiller, she's probably not going to put a fire brand on the ticket, because she doesn't need that help. She wants somebody that reinforces a message of steadiness. But I think more surrogate, less V.P.

BLOW: Let's say this, though. If the worst you can find of Elizabeth Warren saying about Clinton is criticizing her and saying that Wall Street is part of her constituency and you look at all the leaders of the Republican Party and all of the horrible, wretched things they said about Donald Trump.

[19:40:07] And now, they're coming around and saying now they support him, where is the hypocrisy? That's a staggering level.

(CROSSTALK)

BURNETT: Corey, go ahead.

LEWANDOWSKI: Everybody knows in the real world you don't say derogatory things about the person that stands next to you. It only happens in politics. That's why the American people are feed with it. It's time to put someone in there who isn't politically correct.

(CROSSTALK)

BLOW: Stand next to him after Chris Christie had to drag him through the mud.

(CROSSTALK)

BLOW: I'm sorry. I am sorry. You are wrong and he's the hypocrite.

(CROSSTALK)

BURNETT: How he said she was a great secretary of state and now she's the worst one in history.

LEWANDOWSKI: Twenty-five years she's been criticized him.

BURNETT: They all do it. Thank you all.

And OUTFRONT next, Hillary Clinton admitting that people do not trust her.

(BEGIN VIDEO CLIP)

CLINTON: I personally know I have work to do on this front.

(END VIDEO CLIP)

BURNETT: Plus, a dramatic new video of plane passengers looking out their windows. This is the wing of a 777. This actually happened this morning.

We'll be right back.

(COMMERCIAL BREAK)

[19:45:00] BURNETT: Tonight, Hillary Clinton admitting a major campaign weakness that a lot of people just know trust her.

(BEGIN VIDEO CLIP)

CLINTON: I personally know I have work to do on this front. A lot of people tell pollsters they don't trust me. Now, I don't like hearing that. And I've thought a lot about what's behind it. And, you know, you hear 25 years worth of wild accusations, anyone would start to wonder.

And it certainly is true, I've made mistakes. I don't know anyone who hasn't. You can't just talk someone into trusting you. You've got to earn it.

BURNETT: The RNC is already is seizing on her comments releasing a statement that says, quote, "After attempting to skirt transparency laws of a secret server that put national security at risk and then waging a 15-month long campaign of deception about it, Hillary Clinton need not look further than her own dishonest and reckless conduct for why Americans lack faith in their government."

Jeff Zeleny is OUTFRONT.

And, Jeff, you know, it is pretty stunning though that she came out and said she doesn't like it. She's thought a lot about what's behind it. Why now though, why address it now?

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Erin, in one respect because time is running short here. Voters are beginning to make their impressions of these candidates. We are less than five months away before Election Day. And she wants to present a contrast with Donald Trump here.

But she brought this up herself in a speech in Chicago. That's important to note. She's not answering a question. So, this is part of a strategy here going forward in the summer.

The Clinton campaign is trying to get ahead of a couple of things. One, there is still that FBI investigation, the interview looming out there about this long-running e-mail scandal. There's also the Benghazi report still coming from that congressional committee that is still going to be coming out at some point before election day, likely before the end of the summer.

So, she's trying to get a bit of a head start on this. Any time a politician acknowledges a shortcoming -- say, I know I have work to do on this, it usually plays well here. We'll see if it hurts her case here. But it's absolutely true. She does have a shortcoming on this. Her advisers aren't exactly sure how to fix it.

BURNETT: And, you know, when it gets to her unfavorables, Jeff, nothing she has done so far has seemed to work. I mean, perhaps a sense of we'll throw spaghetti at the wall. They have to get those unfavorables down. What is it now, 55 percent?

ZELENY: I mean, the only sort of upside about her unfavorables is the fact that Donald Trump's are even higher, Erin. We're about to enter a general election, period, where the unfavorables are really driving this here.

But on trust is one thing. Donald Trump may have a slight edge, at least in our latest CNN poll. Take a look at these numbers here. Donald Trump has trust of 45 percent of people. And Hillary Clinton, 37 percent. So, that is one of the issues here.

She's trying to raise that. She's trying to sort of be upfront on this. We'll see if it actually works here. But I think more than anything, Erin, it's a prebuttal for what's to come here in the coming weeks.

BURNETT: All right. Thank you very much, Jeff Zeleny.

And OUTFRONT next, plane catches fire after an emergency landing. Nearly 250 passengers were on this Boeing 777, watching from their seats, flames engulfing the wing. This was in the air. Plus, Clinton and Warren, from matching outfits -- yes, we noticed. We haven't said anything yet, but, of course, I noticed. Is this for real?

(COMMERCIAL BREAK)

[19:51:54] BURNETT: Tonight, new details about a plane that burst into flames in the air. This is what passengers on a Boeing 777 saw when they look out the window right after an engine issue forced the pilot to make an emergency landing All 241 people who were on board while this happened are safe.

Rene Marsh is OUTFRONT.

And, Rene, this video is unbelievable. I mea, it's terrifying to imagine looking out your window and seeing that. How did it happen?

RENE MARSH, CNN AVIATION CORRESPONDENT: Well, investigators are still looking into the cause. But what we do know is this, that Boeing 777 was traveling from Singapore to Milan. About two hours into the flight, engine oil warning came on, forcing the pilot to turn back around, make that emergency landing.

Once the plane was on the ground, the plane's right engine burst into flames. You're seeing that amazing video there. The 222 passengers, they were still on board. Luckily, everyone was able to escape safely.

What's interesting about the video, the flames are burning in just one spot. It's actually burning across the span of the wing. While it's too early to know exactly what went wrong here, it is safe to say that in order for that sort of fire to erupt, fuel had to be present.

So, one of the first things investigators will want to look at is maintenance of this aircraft, was the fuel line secured and connected properly? If fuel was able to escape, it's very possible that the engine or even friction from the brakes on landing could have sparked that, Erin.

BURNETT: Which is just so terrifying and it's not the first time a 777 has caught on fire, is it?

MARSH: That's right. We've seen other engine failures with other 777, just last September. The left engine of a British Airways flight, it went up in flames just before takeoff from Las Vegas airport there. You see those images there on your screen.

Investigators at the time said that engine essentially broke apart, sparking that fire. Now, we don't know if that had anything to do with the Singapore airlines aircraft that you saw the video of.

But we should say overall, the 777 is still one of the safest aircrafts out there, Erin.

BURNETT: All right. Rene Marsh, thank you very much.

And OUTFRONT next, choosing a V.P. is clearly not always love at first sight. Or is it? Jeanne Moos is next.

(COMMERCIAL BREAK)

[19:57:47] BURNETT: Are Hillary Clinton and Elizabeth Warren suddenly best friends?

Here is Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: Arms around each other, an affectionate squeeze, Hillary Clinton and Elizabeth Warren were practically dancing together.

They hugged offstage to say good-bye and hugged on stage for the introduction.

We haven't seen a political public display of affection like this since -- OK, maybe Hillary and Elizabeth Warren didn't get that carried away.

Sure, there were a few awkward moments, as everyone watched to see if the two had V.P. chemistry. That holding hands up, raised in victory thing is always hard to pull off. Just ask Ted Cruz and Carly Fiorina.

But Ted and Carly didn't get accused of coordinating their outfits.

UNIDENTIFIED FEMALE: Did you see the matching pantsuits? There they are.

MOOS: "It's twins day on campaign trail," read one tweet.

But it only looked that way on TV. Actually, Hillary was wearing purple, Elizabeth blue.

UIDENTIFIED FEMALE: They're Thelma and Louise at the end of the movie. They would drive the country off a cliff.

MOOS: Or maybe Senator Warren will drive Donald Trump nuts, after he called her goofy, she went after his make America great again hat.

WARREN: You want to see goofy? Look at him in that hat.

MOOS: He was wearing it as he discussed his search for vp.

DONALD TRUMP (R), PRESUMPTIVE PRESIDENTIAL CANDIDATE: I will tell you one thing. I'm getting a lot of calls from a lot of people and they want it.

MOOS: Elizabeth Warren was like a cheerleader on steroids.

Let's give these two a hand for all the time they gave each other a hand.

WARREN: I'm with her. Yes, her. (CHEERS)

MOOS: Like the Energizer Bunny, just when you thought she was winding down, she sped up. Was it possible to clap your way to the vice presidency?

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BURNETT: Her hands must hurt tonight.

Thank you for joining us. Don't forget, you can watch OUTFRONT anytime, anywhere on CNN Go.

"AC360" starts right now.