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Trump Offers Adams a Lifeline; Harley Finkelstein is Interviewed about Holiday Shopping; Australia Social Media Ban. Aired 6:30-7a ET

Aired November 29, 2024 - 06:30   ET

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

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[06:32:51]

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), FORMER U.S. PRESIDENT AND 2024 PRESIDENT-ELECT: I watched about a year ago when he talked about how the illegal migrants are hurting our city, and the federal government should pay us, and we shouldn't have to take them. And I said, you know what, he'll be indicted within a year. And I was exactly right.

I noticed the indictment's very old. It goes back a long time. Well, I had the same thing. They got - they went way before the statute of limitations. So, I wish him well.

(END VIDEO CLIP)

AUDIE CORNISH, CNN ANCHOR: Donald Trump claimed his legal troubles were a result of a political vendetta. And that sentiment echoed by another politician at the center of their own legal battle.

CNN's John Miller has more.

(BEGIN VIDEOTAPE)

DONALD TRUMP (R), FORMER U.S. PRESIDENT AND 2024 PRESIDENT-ELECT: The ridiculous and baseless indictment of me by the Biden administration's weaponized department of injustice will go down as among the most horrific abuses of power in the history of our country.

JOHN MILLER, CNN CHIEF LAW ENFORCEMENT AND INTELLIGENCE ANALYST (voice over): It's one of President-elect Donald Trump's most common refrains.

TRUMP: They weaponized the Justice Department. Every one of those cases was involved with the DOJ.

MILLER (voice over): Repeated claims without any evidence that the multiple criminal cases against him, even the ones brought by state prosecutors, were ordered by the Biden White House. The Justice Department has consistently denied the baseless claim.

MERRICK GARLAND, ATTORNEY GENERAL: I have devoted my entire career to ensuring that the rule of law is the rule that the Justice Department applies.

That we do not have enemies or friends. That we do not pay attention to the political parties or the wealth or the power or the influence of the people that we are investigating.

MILLER (voice over): And when New York's Democratic mayor, Eric Adams, was indicted earlier this year, he pleaded not guilty and began to invoke a similar argument.

MAYOR ERIC ADAMS (D), NEW YORK: I always knew that if I stood my ground for all of you that I would be a target. And a target I became.

MILLER (voice over): Adams has been indicted on five federal charges related to bribery, wire fraud, conspiracy and soliciting campaign contributions from foreign nationals.

[06:35:01]

Prosecutors allege his illegal actions stretched back a decade, but Adams claims that those charges seem to emerge only after he sharply criticized the Biden White House for not doing enough to help New York City with an influx of migrants.

ADAMS: The president and the White House has failed New York City on this issue.

Despite our pleas, when the federal government did nothing as its broken immigration policies overloaded our shelter system with no relief, I put the people of New York before party and politics.

MILLER (voice over): If Mayor Adams was taking a page from Donald Trump's playbook, he was also becoming a validator of Trump's claims, and Donald Trump became one of the Democratic mayor's most prominent defenders.

TRUMP: We were persecuted, Eric. I was persecuted, and so are you, Eric.

Mayor Adams has been treated pretty badly. You know, when he said that this whole thing with the migrants coming into New York, this is just not sustainable. He said it very nicely. I said, well, he's going to be indicted by these lunatics for saying that. A year later, he got indicted.

MILLER (voice over): Would the founder of the MAGA movement use his power to rescue a high-profile Democrat from criminal charges and scandal? Sources tell CNN the two men have spoken since Trump's election win, but it's unclear whether a pardon has ever been discussed.

WOLF BLITZER, CNN ANCHOR: Would you accept the pardon if Trump offered it to you?

ADAMS: I don't deal with hypotheticals.

BLITZER: So, can I assume that's a yes? ADAMS: No, I wouldn't do any assumption. I will allow my legal team to handle it.

(END VIDEOTAPE)

CORNISH: OK, we're going to bring back our panel.

First, I want to start with you, Errol, because I think that there was probably no more consequential sort of political dialog than the Republican governors sending migrants to Democratic cities, and then a leader like Eric Adams really going at the Democratic White House about that.

What do you see in this relationship between Adams and Trump?

ERROL LOUIS, CNN POLITICAL COMMENTATOR: Well, a lot of things are going on there, Audie.

One - one thing you should never lose sight of is that for a New York City-based developer like Donald Trump, it never hurts to have an alliance with the mayor of New York. So, there's - there's some of that as a possibility there.

The idea that Trump is using Eric Adams' legal problems to validate his own false claims about political - being targeted politically, it worked well for him during the campaign. Whether or not it's going to result in something as sweeping as a pardon or some other kind of relief remains to be seen.

The reality is, the case has gone pretty far. They just had hearings the other day and a trial date has already been set for Eric Adams. So, it would take a very substantial intervention. I mean the grand jury issued the indictment. The prosecutors have exchanged a lot of information with the defense team. They've gone before the judge a couple of times. And again, a trial date has been set. It would really be quite extraordinary if, at this point, the - the new president would step in and halt that process. But, of course, that remains to be seen.

CORNISH: Speaking of pardons, Trump hasn't ruled out pardoning Joe Biden's son Hunter.

LOUIS: Yes. You know, I hate to think that we're going to see this kind of consideration. I mean one of the other considerations being thrown around, by the way, is the notion that a friendly relationship between the president-elect and the governor of New York, Kathy Hochul, could be steps toward him hoping for - Trump hoping for a pardon from the governor of New York, because the state charges on which he was convicted he can't pardon himself at all. Those are state charges, where he could seek relief from a governor.

But, all of what we're describing is politics rather than just the facts of - of each of these cases are supposed to be interpreted and - and are really processed separately based on the facts and the law.

CORNISH: Jeff, I want to bring you in here because I was reading some of your reporting from way back, 2017, when Trump was talking about just the power of the pardon. And now, here we are, fast forward, and people are wondering whether he would, Trump, say the January 6th rioters. How does he see this power? And like what would he have learned from his last time in office?

JEFF MASON, WHITE HOUSE CORRESPONDENT, "REUTERS": Sure. Well, now I'm going to have to go back and read that story, Audie.

CORNISH: (INAUDIBLE) homework.

MASON: The - I mean I think he sees that power as absolutely one thing in his toolbox that he can use to advance his own agenda, to advance his own goals, to advance the things that he - that he finds important. And I think the January 6th example is a good one. That's a group of supporters that he has engaged with rhetorically for the last four years, ever since the storming the Capitol took place.

[06:40:02]

And that's certainly something we'll be watching closely to see if he makes good on some of his promises to all or part of the groups of people and individuals who have been prosecuted since then.

I thought the fact that you raised the possibility of a pardon of Hunter Biden is fascinating. And fascinating in part because I've had a conversation with at least one conservative who thought that that was something that the president-elect not only would consider, but - but would likely do. And I thought that was really interesting that there might potentially be support among some conservatives for the incoming president to do something against an individual who many conservatives and MAGA supporters have targeted over the last several years. Of course, that being Biden's son.

CORNISH: Yes, Meghan Hays, that's kind of a sensitive topic. I mean, of all the people we've talked about potentially getting pardons, even Biden has said probably not when it comes to his son. Why do you think that is still, I don't know, an issue in play?

MEGHAN HAYS, FORMER BIDEN WHITE HOUSE DIRECTOR OF MESSAGE PLANNING: Where the president's not going to - where President Biden won't pardon him?

CORNISH: Or even that Trump would say, well, maybe I'll do it.

HAYS: I mean, I think it's a - it - because we're all talking about it, it brings attention. It would be an unusual thing. It would be an incredible sign of unity, I think, for the president-elect to do that. I mean he was the one who targeted him greatly during the 2020 campaign and after.

I just - I don't know if he will actually - if Donald Trump would actually do that. I think it's a - it's a nice gesture. It would be something that would be welcome, I think, but I don't know that that will actually happen.

CORNISH: Yes. Erin Perrine, how does Trump see the power of pardons? Because, obviously, he was very frustrated in his first term with all the investigations that were happening.

ERIN PERRINE, FORMER DIRECTOR OF PRESS COMMUNICATIONS, TRUMP 2020 CAMPAIGN: He sees it as another tool that's a possibility for being able to remedy what he sees as a weaponized justice system against people, wrong or right, right? He feels that there has been a weaponization and, in some cases, that has borne out where you've seen that there has been targeting of conservatives. So, he definitely sees this as a tool in the toolbox for him.

However, I think the one question we're not addressing right now is, who's Joe Biden going to be pardoning, because you're looking at the very tail end of his administration right now. Normally these are things that do happen at the tail end. Bill Clinton pardoned his brother, I believe, at the end of his administration.

CORNISH: Yes. But every president, there's always a handful of pardons.

PERRINE: Yes, there's always some -

CORNISH: Yes.

PERRINE: There's always a handful. So, the question is will -

CORNISH: And always a controversial one.

PERRINE: Right. And Joe Biden has said to this point, probably not on Hunter. But also, we're looking at the very end. And if Donald Trump is considering it as well, I would not be shocked to see that pardon come through from either of them as of this point.

CORNISH: Oh, interesting.

All right, still ahead on CNN THIS MORNING, first of its kind ban for kids and social media passes in Australia. What the rest of the world might learn from the crackdown on tech companies.

Plus, we're also going to talk about Black Friday. While it might be less chaotic than in years past, it's still a critical day for retailers looking to turn a profit.

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[06:47:31]

CORNISH: Thanksgiving is behind us and this means that holiday shopping has begun today with Black Friday. But the day once defined by chaotic stampedes and fistfights for the best deals seems to be changing along with the shoppers' preferred ways to pick up those must have items. According to the National Retail Federation, more than 183 million people are expected to start their shopping during the five- day weekend, but only about 65 percent of Black Friday shoppers are planning to go in person today. And for some shoppers, the change is basically a letdown from years

past. One retired Black Friday shopping fan tells "The New York Times," quote, "shopping has really changed, said Max Frazier, pointing out that most sales today occur online."

And I guess we're a little nostalgic for the fun - the fun we used to have on Black Friday because that doesn't exist anymore.

Joining me now to talk about how Black Friday is changing, but still critical to retailers, is Harley Finkelstein, president of Shopify, the global e-commerce company.

And, Harley, I want to start with that idea of how the digital marketplace has changed all of this. We've been living with Cyber Monday for a long time, but when you look at this five day stretch, what's the kind of important thing to pay attention to?

HARLEY FINKELSTEIN, PRESIDENT, SHOPIFY: Well, first of all, I heard your comment on the quote where shopping is less fun. I totally disagree with that. I actually think we are sort of reliving in a golden age of retail. I think things are way more fun.

And it's also not just online or offline. There's a lot happening here But let's walk through it. And I just have to say, like, if you're buying something today from your favorite brands, there's a very good chance you're buying from a Shopify store.

But there are some changes. And the changes, I think, are remarkable. One thing that is obviously clear is that consumer's favorite brands are selling in a very different way. They're using social selling. They're using community-driven commerce. It's online and offline. And even things like -

CORNISH: And when you say social selling, is this -

FINKELSTEIN: Yes.

CORNISH: Harley, sorry, social selling, you mean when it's like TikTok made me buy a type of thing?

FINKELSTEIN: Exactly. Fifty-seven percent of 18 to 24 year olds tell us that they're likely to buy something this season on Instagram, 56 percent on TikTok. And we're seeing brands on Shopify like Liquid IV, BK Beauty, that are doing these massive sales directly on TikTok shops powered by Shopify.

But you're also seeing companies like Gymshark, which is a famously online brand, a huge online brand, that has now set up a 12 week holiday pop up in New York City.

[06:50:03]

So, it's not just online, it's offline as well. They're also using AI. You're seeing consumers use AI to sort of play the role of a shopping concierge. And you're also seeing merchants on the other side using AI to create great content and even create better media. So, you know, the best brands in the world are rolling out new ways

for consumers to shop and I think it's leading to some of the biggest holiday shopping days we've ever seen ever.

CORNISH: OK, so the flipside of this, recent earnings reports from major stores like Target and Best Buy basically missing their earnings goals.

FINKELSTEIN: Yes. Well, I mean, look, I think the - we have millions of stores on Shopify. What we're seeing is the ones that are most successful, they're going to where the consumer is. If the consumer wants to buy online, that's where they're delivering. If they want to buy offline, that's where they're doing it as well.

But, from our perspective, we are seeing incredible sales across millions of stores on Shopify. In fact, we've actually built something so the whole world can watch live shopping right now in real time. If you go to shopify.com/blackfriday, I actually checked the stats right now as we speak. We're currently seeing 898,000 sales per minute 7,900 orders per minute, and there are currently 13 million shoppers -

CORNISH: Yes. And we're looking at this right now. So, these little comet things I'm looking at -

FINKELSTEIN: It's unbelievable.

CORNISH: Those are purchases?

FINKELSTEIN: Those - each one of those is a purchase.

CORNISH: This is not as fun as watching people like stampede towards a television, I'm going to tell you.

FINKELSTEIN: Well, I think this is way more fun. I think this is way more fun.

CORNISH: Like, it's - it's got its moments.

FINKELSTEIN: Yes, no, Audie, one thing you have to see also, on this globe right now you'll see these little fireworks. Every single one of those fireworks is a brand-new entrepreneur getting their very first sale. What's amazing about this is, these are people that in five years from now, when you invite me back on your show, they may be some of the biggest brands.

So, direct to consumer is happening. Consumers are voting with their wallets to buy from brands they love. And we're seeing that already. I mean we're seeing some trending products right now. Thrive Cosmetics selling their liquid lash mascara. Cozy Earth with their bamboo sheets. And MERIT Beauty with flush balm. The categories right now as we speak that are -

CORNISH: Yes.

FINKELSTEIN: That are the highest trending product categories, skincare, t-shirts, makeup. And - and, you know, one thing that I'm really excited about is, is these little fireworks, these brand new entrepreneurs. But it is a golden age of retail. And it's happening on Shopify right now.

CORNISH: OK. Harley Finkelstein, thanks so much.

FINKELSTEIN: Thank you so much, Audie.

CORNISH: OK, it's 51 minutes past the hour. Here's your morning roundup.

Baseball superstar Shohei Ohtani wants his baseball cards back. This week he filed a court action seeking his former interpreter - asking his former interpreter to surrender $325,000 worth of memorabilia that is, quote, "wrongly possessed" by his interpreter. He actually recently pled guilty to bank fraud charges after stealing nearly $17 million from the unsuspecting athlete.

We've got another lot of raw milk testing positive for bird flu. California health officials say it came from Fresno-based Raw Farm. Consumers are being warned not to drink it. The company issued a voluntary recall earlier this week when another batch was detected with bird flu. Now, no human bird flu cases have been linked to the tainted milk.

And a stowaway made it from New York to Paris after evading multiple security checkpoints. The individual didn't have a boarding pass but made it through security and bypassed two additional screening stations to eventually board the aircraft. The passenger - a passenger on the flight said the individual apparently hid in the bathroom during takeoff.

And it's a world first. Australia is now banning children under the age of 16 from using social media. The new law requires tech companies to take, quote, "reasonable steps" to prevent young children from accessing their services. Facebook, Instagram, TikTok, Reddit, Snapchat and X all are expected to be affected and could face millions in fines if they do not comply. And it's a change that Australians seem to be well on board with. A recent YouGov poll found that 77 percent of Australians support banning children under 16 from using social media. Even higher numbers support stronger penalties on companies that do not comply with the law.

Now, this historic change coming after a number of tragic incidents in which Australian parents said their children were driven to suicide by bullying, exacerbated by social media. And here's how one father, who lost his son to bullying, described his feelings at the laws passing.

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ALI HALKIC, FATHER OF TEEN CYBERBULLYING VICTIM: The platforms and the accessibility to him and the vile threats and intimidations, the stalking component around that, if that was in place today, and I know he would be alive. And - and that's some of the guilt that I have to live with every day. You know, I'm proud to be Australian today. And all the government and

the politicians from both sides, to unite on - on such a front, I think, you know even that could be a first for a long time.

[06:55:08]

And we should be just all applauding each other and acknowledging that we're tackling in a situation that's just destroying so many lives, and especially our young children.

(END VIDEO CLIP)

CORNISH: Australia's prime minister, Anthony Albanese, says it was parents like that who helped get the bill signed into law.

(BEGIN VIDEO CLIP)

ANTHONY ALBANESE, AUSTRALIAN PRIME MINISTER: Look, the consequences - I've met with parents have lost and buried their child. It's devastating. We can't, as a government, hear those messages from parents and say, it's too hard.

(END VIDEO CLIP)

CORNISH: OK, I want to bring our panel back.

And, Jeff, I actually want to start with you. Especially we heard about Mark Zuckerberg meeting with the president-elect. And we know at one point, I think it was this year or the year before, Zuckerberg apologizing to parents in a hearing over sort of social media safety.

Is this something the industry is worried about the U.S. might be interested in legislating further?

MASON: Well, a couple of things. I think, number one, certainly it is interesting to see social media companies reacting to this. And some have suggested that Australia is - is - is - has gone too far or that the implementation is unclear. And also one warning that children would just go into other deeper, darker areas of the web. You know, I think the question will be how it's implemented and - and what the results of that are.

But - but to bring it back to the U.S. and to your question, let's keep in mind some of the people who are in President-elect Donald Trump's inner circle. One of them is Elon Musk, who owns the platform formerly known as Twitter, now X. He's going to be whispering in his ear certainly about - about an issue that could affect his company. But other social media companies will - will be no doubt lobbying and doing the same.

The flip side to that is, you also have this incoming, potentially if he's - if he's confirmed secretary of Health and Human Services in RFK Jr., who has also shown to - to want to sort of shake things up. And that could include health related to social media companies as well. I don't have any reporting on that, but I just think it's - it's interesting that there may be some competing forces within - within the new president's administration on this issue.

CORNISH: Erin and Meghan, I want to turn to you because in some ways this has been a bipartisan issue because parents have - have brought it to the forefront. And you've seen a different, wild mix of lawmakers interested in it.

Do you see it as a movement that is - can be empowered by something like this, what happened in Australia, or as Jeff alluded to, are we going to see different influences weigh and more heavily with the president-elect?

PERRINE: I think that you will see those influences. You will see people try to lean in. But, congressionally speaking, they did ban TikTok in the United States. We have seen - now it hasn't gone through yet and there's still -

CORNISH: Yes.

PERRINE: You know, whether or not that will -

CORNISH: But they were very reluctant to say that age limits or something like that, right?

PERRINE: They were - they were very quick to - yes, they -

CORNISH: Like there's a moment for the U.S. where we say, we don't do that here.

PERRINE: Yes. The United States has had a very hard time stepping, especially with social media and how to regulate it, how not to regulate it, what this should look like. This has been a constant struggle for Congress over a decade.

So, at this point, they could legislate this. I don't know how successful they will be. But if something big happens, if there is a groundswell movement in the United States, if this becomes the next parent forward issue, then absolutely I would see Congress forward it like that.

CORNISH: Thank you.

HAYS: I agree with you. And I just - I don't think it will be at 16. It will probably be at a younger age that they will ban it from. And I think maybe 12 or 13. So, I do think there will be something. I just don't know how severe it will go.

CORNISH: OK, Errol, last word to you.

LOUIS: They could have done it a long time ago. They should have done it a long time ago. We don't let our young children have unfettered access to pornography or explosives or alcohol. And yet they, in Congress, have just proven to be utterly ineffectual at this. Australia is leading the way. Should have happened a long time ago. Basic age gating. Just ask how old the person is. It's really not that hard. CORNISH: We should note, and in a statement Meta responded to Australia's law, saying, "we're worried that the process to pass this was rushed. That it didn't take enough time to look at the evidence, consider what the industry is already doing to create safe, age appropriate experiences, or listen to the voices of young people."

And, of course, once that law goes into effect, we'll find out if it can be effective, right? And then people will have some evidence, so to speak, to point to.

I want to thank my panel for being here today. Jeff, Errol, also Erin and Meghan.

And I want to thank you for joining us. I'm Audie Cornish. And "CNN NEWS CENTRAL" starts right now.