special counsel issuing grand jury subpoenas related to donald trump jr.'s meeting with a russian lawyer. >> they're trying to cheat you out of the leadership you want with a fake story that is demeaning to all of us. >> i'm not just going to take the president at his word. >> federal investigators explore the potential financial ties of president trump and associates to russia. >> these types of endeavors end up being fishing expeditions. >> the president saying he won new hampshire because it's a drug den. >> these words were disgusting. he should stop insulting people. >> to have people there that are leaking information, if there's even a thought that somebody is involved, get rid of them. >> this is "new day" with chris cuomo and alisyn camerota. >> good morning everyone. welcome to your "new day." chris is off this morning. john berman joins me in studio. >> thank goodness, because you

obviously need the help this morning. >> we begin with several developments in the russia investigation. cnn learned special counsel robert mueller is issuing grand jury subpoenas, his target? everyone at that june 2016 meeting at trump tower between donald trump's son, don junior, top campaign aides and a russian lawyer. >> and cnn covering what the president referred to as its red line. they believe the money trail could be a fertile ground for evidence. the president, though, slugging the whole thing off as a total fabrication, concocting by democrats who are still bitter about the election loss. let's begin our coverage with cnn justice correspondent evan perez live in washington who broke so many details of this story. what are you learning? >> special counsel robert mueller is following the money.

cnn learned new details about what investigators are digging into. that includes the president's finances and his family. in a clear sign that the russia investigation is advancing, cnn learned that special counsel robert mueller issued grand jury subpoenas related to the june 16 meeting between a russian lawyer and trump campaign officials, seeking documents and testimony from the people involved according to a source familiar with the matter. this as the probe widens with federal investigators exploring the potential financial ties of president trump and associates to russia. investigators are looking into possible financial crimes including some uncon nexted to the election. for the president that's going too far. he's warned that delving into his businesses is a, quote, violati violation. trump maintained there's no collusion and he has no financial ties to russia. >> speaking for myself. i own nothing in russia

i have no loans in russia. i don't have any deals in russia. >> reporter: now, one year into this complex probe, the fbi has reviewed financial records related to the trump organization. the president himself as well as his family members and campaign associates. cnn has told that they've gone through the list and scrutinized the roster of tenants at trump tower in manhattan reaching back several years. officials familiar with the investigation tell cnn mueller's team has examined the backgrounds of russian business associates connected to trump, dating back to the 2013 miss universe pageant that trump hosted. cnn could not determine whether the review has included trump's tax returns. but even investigative leads

that have nothing to do with russia, but involve trump associates are being referred to the special counsel to encourage subjects of the investigation to cooperate. trump's team seeking to limit mueller's investigation. >> the president's point is he doesn't want the special counsel to move beyond the scope and outside of its mix, and the president has been very clear, as have his accountants and team that he has no financial dealings with russia. so i think we've been extremely clear on that. >> reporter: cnn has learned new details about how mueller is running his special counsel team. more than three dozen attorneys, fbi agents and support staff, experts in investigating fraud and financial crimes broken into groups separated on collusion and obstruction of justice. there's focus on key targets like paul manafort, trump's former campaign manager and general michael flynn, his fired national security adviser. cnn has learned that investigators became more suspicious of manafort when they turned up intercepted communications that u.s.

intelligence agencies collected among suspected russian operatives discussing their efforts to work with manafort, to coordinate information that could hurt hillary clinton's bid for the white house according to u.s. officials. in flynn's case, the focus is now on his lobbying work for the turkish government which he failed to initially disclose by law. while both men deny any wrongdoing, the approach to the manafort and flynn probes may offer a template for how focus of investigations on financial crimes could help gain leverage and cooperation in the investigation. the president's attorney, jay sekulow, told cnn in a statement that the president's outside legal team has not received any requests for documentation or information about this. any inquiries from the special counsel that goes beyond the mandate specified in the appointment, we would object to. alisyn? >> thank you very much.

president trump lashing out at the russia investigation at this west virginia rally last night, calling the russia story a, quote, total fabrication and wonders whether special counsel robert mueller can be fair. joe johns at the white house, good morning, joe. >> reporter: the president beefing up campaign-style rhetoric with campaign-style rally in west virginia, his second visit to the mountain state in the space of just about ten days, only this time the speeshl was not to an enormous group of boy scouts, rather it was to some of the president's most faithful supporters in a state he won by about 40 percentage points in the space of five minutes. within ha speech the president railing against the russia narrative, calling it, among other things, a total fabrication and suggesting to people in the audience that this was something being done to them by democrats. listen.

>> the russia story is a fabrication. it's just an excuse for the greatest lost in american political history. most people know there were no russians in our campaign, there never were. we didn't win because of russia, we won because of you. that i can tell you. >> this is not some new substantive opposition to the special counsel apparently, the president's legal counsel putting out a statement yesterday saying the white house is prepared to be fully cooperative with the special counsel. once again saying that he was told by the now fired fbi director three times he was not the focus of investigation. >> we want to bring in our panel, evan perez, cnn political

analyst john avlon, cnn legal analyst laura coates and cnn editor at large chris cillizza. so now there are these grand jury subpoenas and the scope appears to be, at least for our knowledge, widing in that robert mueller can look at all sorts of financial dealings that president trump had even before the campaign. >> that's right. this gets real now. has the red line been crossed? that's going to bring up a whole thicket of information. the other significant thing that cnn is reporting and the "wall street journal" brought out is sources in the fbi apparently saying it was mueller's comments caught -- >> manafort -- >> sorry. manafort ooes comments in russian intercepts that drew their attention and there were russian agents or personnel talking about manafort and his attempts to reach out and their attempts to influence the

election on their behalf. that's a significant new piece of information. it looks and sounds a lot like collusion. that may not rise to levels of the campaign, but manafort was campaign chair manned and close to the president at the time. >> subpoena for documents, for witnesses to come testify and evan's phenomenal reporting that this has expanded into the financial realm. this crosses what the president agrees was a red line into his past financial dealings. listen to what his personal lawyer -- jay sekulow said a lot of things, some of which proven not to be true. listen to what jay sekulow said about it, also adviser kellyanne conway. >> the president has said that james comey said three times he was not the target of any investigation. we know these types of endeavors end up being fishing expeditions, a very broadly cast net. i would remind everybody that in

terms of president trump he said he has no financial dealings with russia whatsoever. >> there's supposed to be an investigation as relates to russia interference with the election and whether they were working with the trump campaign. that's the general mandate here. to look at a real estate deal from ten years ago, which is when some of these reports came out, i think from bloomberg news or business insider or both, would be way outside the scope of the mandate and we would certainly object to that. >> outside of the scope of the mandate. to remind people what that mandate includes, this is deputy attorney general rod rosen stein who basically hired robert mueller. when he did, he said he could look into any matters that arose or may arise directly from that investigation. that is number two right there. laura coates, you are the attorney here. what exactly does that mean? how wide of a bergt any matters that may arise directly from the

investigation? >> it ses leessentially means mueller has the discretion to pursue any leads as opposed to what was noted in the press or his original directive, he's entitled to do so. he can seek an expansion of the mandate from rod rosenstein. he doesn't need to do to at this point. those particular financial endeavors and probes are not rabbit holes that are tangential. they are related to whether or not you can prove criminal intent or collusion or whether there was some motivation behind the president or the campaign's dealings with different entities in russia. >> explain that to us. we had robert ray, the special counsel for the white water investigation. we all know that scope expanded famously. so he disagrees with your assessment in that he says the word that john just read, the operative word there is may arise directly from the investigation. how are real estate deals from the 1980s in new york city

directly related to the russia investigation? why would mueller be looking at those real estate holdings of trump's? >> i did hear his commentary about that. i think his argument was a little more nuanced. it wasn't that every single transition in the past is somehow related. the idea is whether mueller is entitled to pursue different leads that arise from his investigation. he's not going to ignore them and say, i limited a certain time, scope, certain place here. no, the timing of this is what has lead us to an actual campaign's potential involvement with a foreign entity trying to influence 2016 election. that could include prior real estate dealings. it could include the reasons they took certain meetings, could include former relationship that started a long time ago. so it's not just that it has to be directly from 2016 on. if it's related, it's in his scope. whether it leads to a charge is a very different story. >> you heard kellyanne conway note at the top of the statement that james comey told the

president three times he wasn't under investigation. one of the president's lawyers essentially said the same thing overnight, the white house favors anything that accelerates the conclusion of his work fairly. the white house is fully committed to cooperating with director moouler. james comey said three times the president was not under investigation and we have no reason to believe that has changed. one problem with that, chris cillizza, is those statements from james comey came before he was fired, before there was this whole idea there was an obstruction of justice investigation. that came from the president's firing later on that it was because of russia. it came before any knowledge of this don junior meeting with the russian lawyer. so that statement, is it still operative? does it still matter what james comey told the president? january? >> i mean, i think it should always include -- james comey told the president, fill in the date, three times that he wasn't under investigation.

things change, particularly when there's an active investigation into this whole matter. it is the thing that they are hanging their hat on because it's the best thing they have in terms of spin. we don't know the inner workings of the investigation at this poi point. it's important to note, it's accelerated considerably since january. we know a lot more and we're not privy to everything that bob mueller and his team know. we know a lot more about where the investigation is. we know about the don junior meeting, know more about the e-mails than we did before. presumably things have changed. that doesn't mean the president of the united states is under investigation for sure. we don't know that. we don't know if it's changed. but it's hard to say, well, in january he wasn't under investigation. so we haven't heard anything else. it's a little bit ofburying your head in the sand. i understand why they're doing it, because it's their best argument. >> evan, in terms of your reporting, we often hear from

investigators, follow the money. that's what they do to try to lead themselves to the bottom line. can you remind everyone of what now the scope -- what you've learned that mueller is investigating. i believe we have a graphic to help people walk through it. so what is -- is there a way to tell what the primary thing is, or are all of these things equal? >> look, i think they have not given up on the central question of whether or not anybody in the campaign -- and that includes people inside the campaign and up through the president and his family, did anything to coordinate with the russian spy services to influence the election. if you put the graphic back up again, that includes all those questions. you start in the middle and go to the periphery to see if there's any money, anything that explains the collusion question, whether or not there's any obstruction of justice with the firing of james comey or even in their explanations for that june 2016 meeting at trump tower that don junior coordinated, and also the question that focuses on

paul manafort and michael flynn. both of those people are under scrutiny for various financial dealings. again, all of it ties back to the central question, and i think as laura pointed out, it doesn't ever really go away from the central charge that bob mueller is tasked with which is trying to get to the bottom of what russian influence played a role in. >> paul manafort had history of accepting moneys from entities that may have been connected with russia. what's also significant is he was incred fwli close with trump at a pivotal point in the campaign. but, and this may be crucial, he was kicked to the curb and there was a conscious effort to separate. the fact that trump has been reluctant, bending over backwards to support flynn even after he was fired for lying to vice president pence and has been incredibly reluctant to criticize vladimir putin in almost any context which is

unusual for any politician, let alone a president. as the scope widens and the targets become more clear, there's a troubling pattern that's going to be tough for the white house to spin its way out of. >> coming up in the next hour we'll have an interesting conversation with ken starr, the independent counsel who, of course, investigated president clinton. >> i think the panel should stick around just to listen. we haven't seen the last of the mooch. ousted white house communications director anthony scaramucci canceled his online event scheduled for today. however, his alter ego mario cantone did make an appearance. it turns out the mooch never actually left the oval office. >> we've lost a lot of friends around here lately, including the only man i ever love -- >> i frickin love you, mr. president. >> mooch!

mooch! wow, it's the mooch. >> it's me. the only [ bleep ] guy in the white house. >> you slept in there. >> yes, i did. an old italian expression my mom used to say. you messed up snou get back in the couch. >> welcome back. >> anthony, i heard what you said about me and what i like to do to myself. >> yeah, so what? >> so, thanks. probably one of the nicest things anyone ever said about me, including your mother. >> no fighting. >> oh, my god -- >> this is exactly what general kelly we're told is cleaning up. >> inside the white house. the love fest continuing later in the show. trump and the smooch sharing a

smooch at the ends of the episode. our produce is telling us to react right now. i'm not sure how to react. i don't know that needs a reaction. >> maybe the president will react if he holds a press conference before going on vacation. maybe someone will play him the clip and say is this how things went down. >> we hope mario can somehow figure out legs to this story and continue. >> lawmakers ready to go on recess with no breakthroughs on health care or any other major legislation. the president is not happy about irt, but should they be more worried about angered constituents? . hey. hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits.

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members of congress heading back to home districts to face angry constituents over no break dlooe through on health care, the economy and they were hearing pressure to stand up to the president. watch how republican lawmaker leonard lance did this last night. >> i promise i will continue to

vote my conscience, and where i disagree with the president, i will indicate that publicly. we all should be civil with each other, and he certainly has not been. >> joining us now is republican congressman leonard lance of new jersey. you had an interesting town hall last night. what was the response when you said you didn't think the president had been civil? >> i think the crowd agreed with that. this is the fifth town hall meeting i've had this year, alisyn. i think it's an important part of my responsibilities to meet with constituents including in the town hall setting. >> i want to get more to about what happened at the meeting last night. but first i want to talk about all the developments this morning and our top stories, and that is the russian investigation appears to have widened under robert mueller. he is now looking at the finances of president trump even before the campaign, even before the 2016 campaign. he can look at finances from his real estate holdings and go back in time. we've also learned that there is a grand jury that is now issuing

subpoenas. are you comfortable with the scope of this? >> i think the investigation should lead where it leads. the empaneling of a grand jury doesn't necessarily mean there will be an indictment. i'm a lawyer, but not a criminal lawyer. obviously i think it should lead where it does, and the president's counsel indicated that the president would cooperate fully in the investigation. >> but the president also indicated to "the new york times" that that would cross a red line for him, cross a red line if robert mueller be gan to dig around in any financial dealings that happened prior to the 2016 campaign. that's now happening. >> i'm not sure we should investigate what happened in the 1980s. a guest, mr. ray, indicated that that might go back too far. by ty cobb has indicated the white house will cooperate with the investigation. >> you aren't worried that

though the president himself said that would cross a red line, do you think that red line -- he didn't specify what happens if the red line is crossed. do you think he gets a feeling to fire robert mueller? >> i certainly would recommend that he not discharge mr. mueller. one wonders who would actually do that. i don't think the acting attorney general -- it would have to be mr. rosenstein because the attorney general has recused himself in these matters -- would have to do it. and i don't imagine he would do it. i don't think that's good policy. i'm sure that the president's advisers are recommending that he not do that. >> are you sure? because kellyanne conway was on cnn last night saying she likened this to a fishing expedition. >> i think the facts should go where they go. i'm not sure we should go back to the 1980s, but certainly we should cover the 2016 election. >> also today, there are leaked documents, transcripts from

president trump's phone calls with foreign leaders. i want to read you one piece of exchange with the mexican president pena nieto. this is about the border wall. pena nieto says my condition continues to be very firm that mexico cannot pay for that wall. president trump says but you cannot say that to the press. the press is going to go with that and i cannot live with that. >> in other words, the president telling the mexican president not to tell the truth there. >> it was a back-and-forth between two presidents and their positions on this issue. i think it's unfortunate that the matter was leaked because i think these conversations should remain private. last week we in the house passed $1.6 million for funding improvements at the border, not necessarily building a wall across the entire border. i would expect the president to sign that into law. >> are you comfortable for footing the bill for what the president said mexico would pay for? >> i'm comfortable in securing

our border. i think that should be a high priority for us in congress. i want as secure a border as possible because i think that's a way forward on the larger immigration issue. >> if not a real wall, a virtual wall? >> no, there is some fencing, and secondary fencing and other matters. it's not a wall across the entire southern border. >> let's get to your town hall. were people angry? >> i think there was a healthy discussion. i wouldn't call it anger, there was certainly a discussion on the health care issue. i'm a member of the problem solvers caucus, and we discussed that matter. that's a bipartisan way forward, at least in part of the health care issue. it was also a discussion on other issues as well. i mentioned, of course, the russia sanctions bill that includes iran and north korea as well, alisyn. >> when your response was that you were calling for civility and the president has not lived up to that and he has nod been civil, what are you referring

to? >> i think some of his statements have not been civil, but i also think there have been some of the left who have not been civil as well. i want civility for all of us in washington, and i think that there's a new tenor at the white house under the leadership of general kelly as chief of staff. i think it was an ex-lenlt appointment by the president. i detect a new feeling here in the nation's capital -- >> how do you detect that? what's the manifestation of that? >> i think general kelly is trying to bring order to the white house and i think that's a good idea. i was pleased with the statement by ty cobb regarding cooperation with the special counsel. >> in terms of the president being more civil, would you like him to retire his twitter habit? >> i don't think he should retire it. i think he should discuss major public policy. it is the way for the president to interact directly with the american people. >> you like that, that's a good idea -- >> i do.

i certainly don't like all of what he has tweeted. but yes, i think it's important for the president and other leaders to interact directly with constituents. >> we appreciate you coming on here, congressman leonard lance, thanks so much for your perspective. >> thank you. >> special counsel robert mueller following the money and crossing president trump's red line. we'll get reaction from a democratic senator next.

there were no russians in our campaign. there never were. we didn't win because of russia. we won because of you. that i can tell you. >> president trump railing against the russia investigation in a campaign rally in west virginia last night calling it a total fabrication. but special counsel robert mueller's investigation is widening, not winding down. joining us, ben cardin of maryland. senator, you heard the president right there tell a campaign rally in west virginia we did win this campaign because -- didn't win this campaign because of russia, we won because of you. is he right? >> john, first, it's good to be

with you. there is no question that russia tried to influence our election. that is now well established. there were many connections between russia and representatives of the trump campaign. the investigations that are taking place are going to give us some of those answers. there is no question that russia was active in our last elections. >> you're not suggesting that the president won the election because of russia, because that's what he told the crowd last night? >> no, i'm not suggesting the outcome was determined by russia, but we know russia tried to influence the outcome of our election. that's a very serious matter. we also know there were contacts made with representatives of the trump campaign. that's very disturbing. so the investigation will give us, i hope, the answers, for two reasons. people need to be held accountable, but we also need to protect ourselves against further activities from russia. they're clearly going to try this again in the future. we've got to protect our

democratic system of government. >> there were major developments we learned about in the last 4 hours. one is that a grand jury is issuing subpoenas in this case for data, documents and witness testimony in the russia investigation. cnn also learning that the investigation is delving into the president's finances, looking into the trump organization. kellyanne conway suggesting overnight this could be considered a fishing expedition. jay sekulow, his private attorney, saying this could be outside the purview, outside of the scope of this investigation. what's your take on that? >> mr. mueller needs to follow all leads. he has an obligation to follow the information. you can't led it sit on the table. that's his responsibility, to make sure all the questions are answer answered. we don't want to prejudge it. we know there are troubling

signs. it would be helpful if the president would acknowledge russia's involvement in our elections. >> i want to stay on the finances here. how far is too far? should there be a limit into how much robert mueller should look into or could look into in terms of the president's finances? >> clearly there has to be information that was obtained as a result of this investigation. he can't start a new investigation for different reasons. that would be handled through the justice department in a different manner, if additional information is discovered. what he needs to do is have a thorough investigation as to all the connectiontion of russia. >> if he turns up financial improprieties 245 have nothing to do with russia, are those legitimate things, threads to pull on? >> he'll make the judgment whether it's important to do that as part of his investigation or whether he'll recommend a separate investigation on a matter not

related to the original charge. that's a decision to be made by mr. mueller. >> on the subject of russia, the president wrote about russia, he was talking about the sanctions imposed by congress, a bill signed by the president. you were very active in pushing these sanctions through the senate and also through the house as well. this is what the president wrote about this. he said our relationship with russia is at an all-time and very dangerous low. you can thank congress, the same people that can't even give us health care. he blamed congress for the bad relationship with russia. bill krystal with the weekly standard noted, he's blaming america, it seems, for what russia has done. >> that's exactly right. russia is responsible for the deterioration of the relationship between the united states and russia. russia attacked us and our election system. russia has invaded other countries in europe. russia is interfering in a peaceful way to end the conflict in syria. it's russia's activities that have caused this relationship. what congress did is give the president a stronger hand in

dealing with mr. putin. now it's up to the president to use the cards that we've dealt to him to make it clear to mr. putin that the united states will lead with our european allies and isolate russia economically if they don't change their behavior. >> we learned yesterday that the president thought he had a very pleasant phone call with vladimir putin early on in the administration. there were leaked transcripts of phone calls that the president had with the president of mexico, the prime minister of australia on january 27th and 28th shortly after he was inaugurated. are you comfortable these transcripts were leaked? >> no. i don't think the transcripts should have been leaked. we've had reports on both -- on the australian call was well reported. so i don't think it was a surprise to read the transcripts. in regards to mexico, there was new revelations. but those transcripts should never have been released, but they're not surprising. i think we all understand it. we know mr. trump is very sensitive about the wall. we know he has no support in the

congress to build a wall on our total border. it's not a surprise to hear what's in it. but that information should not have been leaked. >> i have spoken to republican congressmen who are supportive of a wall in some form. leave that aside for a moment. i want to be clear that leaking of the transcripts could have a chilling effect on a president, any president's willingness to have private conversations with foreign leaders. >> i think foreign leaders may be concerned about what they say to the president of the united states because they might read it in a paper. it has a chilling effect on candid discussions between world leaders talking with the president of the united states. i agree with that. let me just repeat, the wall, i don't think you're going to find a lot of support in congress that we think mexico is going to pay for the wall? >> the mexican leader made it clear he's not going to pay for it. in the conversation he said he's not going to pay for it. what came out, the president

asked him repeatedly, just stop talking about that you're not going to pay for it because it puts me in a bind. senator carbon, thank you. a pair of rain delays could not dampen the competition between the cubs and the diamondbacks. highlights -- what's happening there? i like dance moves during sports. we have highlights in "the bleacher report." that's next. feel less hungry with the natural fiber in clinically... ...proven meta appetite control. from metamucil. at the lexus golden opportunity tesales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now.

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there was this dramatic rescue in southern california after torrential rains caused severe flooding. you can see a man being hoisted there to safety after getting trapped in his car in the floodwaters. the storm washing away the roads. so how is it looking today? let's bring in cnn meteorologist chad myers who has our forecast. hi, chad. >> better today. happy friday. this weather brought to you by z xyzal. that man that got picked up by the helicopter, wanted to take

the skateboard from the back of his pickup as well and the pilot said no, can't take the skateboard. there is rainfall in parts of new york city right now. even a flood advisory for the city itself. we could see standing water, maybe up to about the curbs, but that's about it. the rest of the day day, storms through up state, there will be showers in california, new mexico and arizona. that flash flooding we sy see all the time in the summer. bigger weather over pittsburgh, buffalo and rochester. temperatures nice all weekend long. >> chad, thank you very much for that. there is no fate on earth worse than being a miami dolphins fan. i can't imagine being that type of person. now their starting quarterback suffered an injury during the preseason. andy scholes has more on this morning's bleacher report. >> good morning, john. always the worst thing that can happen to an nfl team, losing your quarterback during the preseason. the dolphins' ryan tannehill

going down on a non-contact play hurting his knee. the team fears now he's going to be lost for the entire season. that means the dolphins are in the market for a quarterback. many are wondering if colin kaepernick will now get a shot with the dolphins. miami is where he received one of his coldest receptions from fans last season. many were not happy with him because early in the season he wore a t-shirt with malcolm x and fidel castro on it. miami, of course, has a huge cuban population. jay cutler also another option for the dolphins. he currently is retired and planning on calling games for fox this season. the diamondbacks and cubs had a rain delay yesterday. the guys in the bullpen decided to play charades, this was an epic battle. diamondbacks going with the bobsled. and then carl evans, junior, caught a live one. arizona would go bowling and pull off the always tough

seven-pin split, and the cubs would concede after that bowling exhibition right there guys. the guys in the bullpen, they had a lot of downtime, so lots of time to think about fun things to do. who do you think won? i personally like the bobsledding event. >> i like the fishing. i would like that so much more than the actual game. if all athletes could do that all the time, i would go to games. >> this is the only time i've seen alisyn interested in sports in any way. >> i'iv i'm riveted by this. andy, thank you very much. reports are of an intensifying feud between national security adviser h.r. mcmaster and chief strategist steve bannon. what's going on in the white house and can chief of staff john kelly stop it? ♪

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her security clearance. our two guests have been following the story very closely. we have blume berg view columnist and michael warren. great to have bot both of you. the fact that susan rice keeps her security clearance can we conclude that h.r. mcmaster decides she did nothing wrong. >> i should clarify he did not do any kind of internal investigation and cleared her or nic like that. his view was that this was not anything that was improper. which is also the view, i should say of many democrat the who have vocally sort of said nothing to see here. that's not the view the chaerm house nelg committee or the president. the i have since been told that the letter that gave her these experiences was foet related in any way to his personal view he shared with colleagues and people who have talked to me. >> do you think that he would have allowed for this security clearance had he had direct

concerns that she had willy-nilly unmasked all kinds of people. >> i it's really hard to say and i don't want to go that far. i spoke to someone this morning that said the two things were not reit laed but i can tell you it was something that caused consternation inside the white house and people who believed he shouldn't done that. trum of h we haven't seen the facts. experts have said all of this really depends on what was unmasked, whether or not it was leaked. nunez contends some of this stuff did end up in the press. there's still a lot we don't know but it's difficult to judge without the information. >> as to that consternation in the white house, is there a bona fide battle roy al somehow between h.

r mcmaster and steve bannon. >> yes, there is. the i talked to somebody at the white house yesterday. the unmasking issue and susan rice and her security issues are two different issues. it's a continuity thing. you can't talk about classified information with a former missi national security adviser. >> it's a separate issue except if they thought she had crossed boun bounds would they still give her security sleerns. >> i think the letter itself dd h.r. mcmaster has his opinion ant aparntsdly voiced it. >> is this battle. i think it does come down to a difference in opinion between mcmaster and ban non. and sort of clearing out mike

flynn. that's a problem that ban non allies see as sort of going directly to the heart of trump's own agenda. >> there's a new development which is you have a new man in charge inside the white house. general john kelly, who apparently has allowed general mcmaster to push out the people he was stuck with. >> im think that's interesting. >> we have a graphic of all of them who have been kicked out under mcamaster's watch. >> he was somebody who he tried to move off the national security counsel and was blocked reportedly by steve bannon and the president himself. >> i think you can take away from the fact now in a kelly is there, that that has the sort of indirect approval of the president. >> so what do you make of this that john kelly is attempting to right the ship and restore order, and that might not bode

well for steve bannon or at least his -- >> if you are the commander you get to pick your staff. think that is the principle that applies in this case. under chief of staff reince priebus, there were lots of these personnel disputes. we just heard from michael about the issue of watnick. i think that principle is sort of applied now. it's potentially part of the new regi regime. i can tell you in h the case of ezra what i'm hearing is there are a lot of other advisers closer to the president right now who are very upset. >> that he was ousted. >> that he was ousted and i wouldn't be surprised if you saw him in another role in the administration. >> interesting. the that ties into part of the

unmasking thing. >> it was he, as you just said, the people understand the context. it was watnick who wanted to investigate the inmask if susan rice had done something illegal? >> no. my understanding is he was reviewing the policy, sent it to the office of general counsel, then nun ez had another -- who informed him about this. but i don't think it was sort of like ezra cohen watnick, discovery, what do i do. and he goes to don mcgann's office. >> final point on mcmaster who's found himself feeling heat from the conservative media, really, for a long time but specifically over the last week. breitbart focusing on him quite a bit. what's wrong in the mind of some of these writers with

h.r. mcmaster. >> there's definitely sort of an outside campaign going on. allies of steve ban non are sort of pushing this. i can't say for sure whether it's coming from ban non himself. i don't think it is but that's certainly a big part of it. there's this view, i think that he's protecting obama appointees. it's a little more complicated than that. the there are people that are more difficult to get rid of from the past administration. there's budgetary issues. this is a fight. this is at bale that's going on, and they're trying to push each other out and this is the result of that. >> michael, ely, thank you very much for all these developments and sharing your reporting with us. we're following a lot of news this morning. let's get right to it. >> the russia story is a total f fabrication. >> as the investigation expands in the president's finances.

>> he said he has no financial dealing with russia whatsoever. >> i was looking to hear your finances and family. >> the president can't set red lines for bob mueller. >> if you think there's another shoe to drop, it's going to be a size 18. >> new leaked transcripts sho contentious conversations between president trump and leaders of mexico and australia. >> i am worried about the way this president is conducting foreign policy. >> we need order out of chaos and start firing people. >> this is "new day" with chris kwoem mo. >> good morning everyone welcome to new day. august 4. >> i win the lotter are i this morning. >> you're so lucky. >> take that cuomo. >> we begin with several big developments in the russia investigation. special council problem bert mueller issuing grand jury