>> by the way, that's one thing you can always count on "morning joe" to talk about european asbestos regulation. >> and re-regulation. what have you learned? >> i just learned from professor stiglitz, this crazy thing in nafta, where companies get reimbursed and get compensated. that's crazy stuff. and that's in tpp, too. >> it should. >> what have you learned? >> that's what i learned. >> it's way too early, it's "morning joe." let's go to stephanie right now. she picks up the coverage. >> thanks a lot, joe. those guys always have a good time. i'm stephanie rue. hope you're having a good morning. we have some breaking news. campaign shake up. donald trump upends his campaign yet again. paul manafort, effectively demoted. two new trump confidants now in charge. the campaign is bragging that one is the most dangerous political operative in america. here's the question, can he turn the campaign around?

also breaking, out of control. a massive wildfire sending more than 80,000 residents fleeing mandatory evacuations for a total of eight communities. >> i guess it's really moving fast. we just got told, like, you have to get out, now. >> houses destroyed with no end in sight. we are live with the latest. plus, complete devastation. more than 40,000 homes flooded in louisiana. 30,000 residents have been rescued. >> i grew up there. >> and the worst is not yet over. we are tracking it all. all right, you know what we're going to start with today. it has got to be donald trump, overhauling his campaign leadership, and this is just 2 1/2 months before election day. stephen bannon and kellyanne conway. they're going to be taking on new high-profile roles at the taupe of the trump campaign, essentially overshadowing campaign chair, paul manafort. i want to bring in katy tur, she has more on the trump campaign,

and pete williams following developments surrounding hillary clinton. katy, let's start with you. what's behind this change? >> well, donald trump wants to go back to being donald trump. the changes we're seeing with kellyanne conway coming on as a manager and stephen bannon coming on as being a ceo is back to what worked in the primary. it's, let's trump be trump. they believe what he did in the primarilies worked towards him and this change to trying to be more traditional as of late is what's been hampering him in the polls. >> specifically, what do these two bring to the table, though? because one could argue, trump's been trump for quite a while. >> reporter: yeah, you know, kellyanne conway is a longtime pollster. she's had donald trump's ear for years now. she talked to him about a potential governor's run years and years. steve bannon is someone who owns, essentially, breitbart. they're both conservative voices. they're conservative voices that are pushing back against the

establishment. and while neither one of those people have run a campaign before, they do have ties to gop money. and that is a big deal. it's something that donald trump has not been able to tap into, in a way that mitt romney or past candidates have been able to do. robert mercer, specifically, one of those big donors that they have a close relationship with. but they're also two people who are not going to push back at donald trump. are not going to try to change him. he's been himself, but he's chafed ed d at the idea of tryi stay on prompter, stay on message, not go after paul ryan, say, or members of washington. they are two people who are going to allow him to push back at this establishment force that's coming up against him, and maintain this idea that he is an outsider. so it will streamline things behind the scenes, but it also is a return to donald trump refusing to get in line. and refusing to acknowledge that politics is run a certain way in this country. so, from the outset, or from the

outlook on this, it does seem like donald trump is going to go back to the way he was in the primaries, which was, this free-wheeling style. >> free-wheeling style that sort of pairs against what politics does, and that's today. donald's going to be getting his first national security briefing, just as we were saying, well, we're going to go back to donald unleashed. how's that going to work, getting very sensitive information. >> reporter: yeah, it is an interesting day for this to happen. he's getting his first national security briefing today in new york, at a secure location. this is going to be a broad overview of america's positions in the world. it is not a detailed report. nothing about covert operations or stuff like that. not like what the president gets at his daily briefing, whatsoever. this is going to be very basic. it's going to be very much up to donald trump to ask the questions, to learn more information. he is bringing general mike flynn with him, one of his foreign policy advisers. he told fox a last night, this aired this morning, that he's bringing flynn with him because

he doesn't necessarily trust the intelligence. that raises red flags for foreign policy experts, national security experts, who wanted donald trump to go inith an open mind, to learn stuff, and then to move forward and to change, to adjust his rhetoric. he's going in very clearly now with an idea that the intelligence is skewed, it's wrong, it hasn't worked, and his belief that general flynn will help guide him toward what he sees as maybe the better line of attack, or line of defense, here at home, and overseas. >> all right. thanks, katy tur, outside at trump towers. we're going to stay on the trust front, on the democratic nominee, this time. new details into why the fbi recommended against charging hillary clinton for using a private e-mail server while she was secretary of state. this morning, they have turned over notes from their private interview with clinton to members of congress, but the fbi is reiterating that it did not find, quote, gross negligence in clinton's actions. our justice correspondent, pete williams, is following this.

pete, what exactly do we know here? >> reporter: this is a further expansion on the fbi's explanation for why it recommended against charges. and some of this amounts to a response to questions that were raised when the fbi director testified before congress a couple of days after his announcement. the fbi says in a three-page letter sent to congress, that they contrast this with other cases. for example, david petraeus, the military official, who became cia director. they say he knowingly gave a massive amount of classified information to someone not cleared to have it. sandy berger, the former nse adviser, knowingly took material from the library of congress. and a navy officer, a navy enlisted man, who also was charged, they say he knowingly took material home and then lied about it. so in all of those cases, they say it's different. one other important thing that came out, one new detail here. we had known that some of the paragraphs in e-mails that were found on her server had in parentheses a little "c," meaning that it was confidential, the lowest level

of classification, in at least three cases. now the fbi says, those were e-mails sent to the secretary. so in other words, she didn't do anything that caused them to appear in her server. that someone sent them to her. and they also say that it's not clear whether those documents were classified at the time they were sent. so you put all of that together, the fbi says this further explains why they recommended against prosecution. now, they did give additional material to the congress. some of the e-mails in question here, and also, some redacted academies of the notes that agents took in their interview with her. the fbi does not transcribe or record interviews with the people in cases like this. never has. it's a long-standing policy. >> lack of clarity is what got us here, but talk about the protocol giving these notes or any information they have to members of congress, members of congress who weren't even involved in the case. does that seem strange? >> reporter: well, it's unusual. let's put it that way.

there's not a lot of precedent for giving 302s, as they're called, these interview notes, to congress. but some of this material that's classified puts congress in a bit of a box here. because if they leak it, if they make it public, they're doing the same thing they accused secretary clinton of, which is mishandling classified information. >> wow. the story continues. there's a lot more we're going to learn. now we need to take you to unfortunate breaking news in the state of california, where firefighters are dealing with massive wildfires on two fronts. a brush fire exploded out of control in san bernardino county, just east of l.a., scorching 18,000 acres and forcing more than 80,000 people to flee their homes. nbc's joleen kent is in wrightwood, california, with the very latest. joleen, what do we know about this fire? >> reporter: good morning, stephanie. it tripled in size overnight. 82,000 people so far evacuated from this area. 18,000 acres have been engulfed in flames. firefighters working hard. we expect to see a pretty large

air campaign today, as they try to douse these flames and prevent it from spreading, but zero percent containment right now is what we're looking at. right now you can see some flames taking hold overnight. they were flaring overnight and calming down right now. of course, afternoon winds tend to pick up, so we could see a change in the direction. meanwhile, lots of people taking shelter and evacuating, as they try to figure out what comes next. >> zero percent containment in this fire. but it feels like it's not just this. when we look across the state, i feel like the whole place is on fire, specifically now. why? >> yeah, it really is a combination of factors. you've got very dry, bone-dry brush, serving as kindle, basically. you also have high gusts of winds. of course, the five-year drought, you can't forget about that. and you have the higher temperatures, as well. we expect to hit potentially triple digits today. at least in the high 90s. you put all of that together, and it's a real pandora's box, when it comes to fire spreading

very quickly. we also have the national weather service issuing a red flag alert. that's basically imminent extreme fire danger over the next 24 hours. and that has been issued from both northern california all the way through southern california. so a lot of people bracing, packing up their stuff, trying to figure out what to do here. but, 82,000 people and counting have evacuated. >> zero percent containment. that's some serious stuff. jo ling kent, thank you for giving us the latest on the wildfires in california. but now we've got to move to louisiana, where the death toll has risen to 11 as the catastrophic flooding wreaks havoc across the state. these are before and after shots images taken of the region known as den i'm springs. this is just south of interstate 12, flooding the entire area. let's go straight to gabe gutierrez. he is in the city of sorrento,

which has really been among the hardest hit. gabe, give us an update. >> hi, there, stephanie. good morning. yes, we're here in sorrento. this is one of the areas where there is still plenty of water. you had mentioned baton rouge and denham springs. the water has begun and has largely receded there. however, all that water is moving downstream and devastating many of these communities, as you can see behind me. this neighborhood is inundated, and there is a lot of concern over the next 24 hours or so, for communities further to the south and west, arcadia parish, including crowley. they are seeing some rising water levels. and authorities there are telling people to brace for impact. stephanie, this has been a disaster that's been ongoing for several days. as you mentioned, the death toll climbing to 11. 20 parishes now, 20 parishes and eight just added have been added to that federal disaster declaration. 30,000, at least 30,000 people have been rescued. and some 40,000 homes have been impacted. they've been damaged during what many are calling an historic flood here.

>> 30,000 rescued, historic flood. talk to us about the resources in terms of what's being done to help all these people. >> well, it is a massive response. and what's further complicating matters, stephanie, is thatnly one in eight people in this part of louisiana are covered by flood insurance. so, this disaster declaration is opening up federal money for some of these folks. they're urging people to apply. the state authorities have said they expect more parishes to be added to this federal disaster declaration, as this flooding disaster unfolds. the other thing that's being done to help these folks is that there are massive emergency shelters, about 8,000 people or so, are in emergency shelters, excuse me, right now, including a massive one in the baton rouge area. a former movie production house. it was a production house, has now been turned into this huge emergency shelter. so now, today, people in the baton rouge area are heading back to their homes, seeing

what's left, and assessing the dab damage. but for places like sorrento, where there are few resident s who are able to go back and try to salvage what's left from their homes, this water is still here and it's not expected to clear out of some of the neighborhoods in southwest louisiana until later this week. >> 30,000 people rescued. gabe, thank you for the latest. let's hope that water doesn't rise. we're going to take you now to some other headlines overseas. russia denying allegations that its use of iranianilitary bases to bomb targets in syria violates united nations sanctions on iran. the russian military says it launched a second round of air strikes to overall expand its air campaign supporting the syrian president. and an investigation is underway in the state of connecticut, after six young children were injured by electrical shock while riding at an amusement park ride. officials say one child suffered minor burns to his hands when he touched a bar as he was leaving the area of a ride at ocean

beach park in new london. all rides in the area are shut down until officials determine the cause of the shock. we're going to take a break, but up next, new details on the trump campaign's shake up. we're going to speak to a former campaign staffer, who is now running trump's super pac. will the new leader s rein in m. trump or set him lose? i don't need a sword, i'm a firemaid. ding dong! i'm going to give this place a killer review. i don't know, i just always thought maybe my bachelor party would be a little less g-rated. wench! ahhh! ahhh hahaha... oooh! party time! party boy! ok, ok. mm hm, party time. hmm, mmm, mmm... built a sandcastle?id? ha, no, i switched to geico and got more. more? 24/7 access online, on the phone or with the geico app.

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some new reporting now surrounding donald trump and two additions to his campaign. pollster kellyanne conway and breitbart executive, stephen bannon. i want to bring in nbc's hallie jackson. she's been following this, joining me now by phone from wisconsin. halley, what have you learned in the last few days? >> so on the phone talking about this campaign shake up, i think there are a lot of conversations happening about what this means

for donald trump, why he's doing it, and a couple of things to become clear. this is not something winning campaigns do. it's an acknowledgement from trump himself, because, again, what we are hearing is that this campaign from donald trump, this is not a decision he was pressured into, this is something that he wanted to do, was install stephen bannon and kellyanne conway in positions that are higher than what they had been. and in doing so, essentially take some of the power away from paul manafort, in what is a de facto demotion for him. number two, the other point, this is a way for trump to get a little more comfortable out on the road. he wants to be trump. we saw this during the lewandowski days, when corey lewandowski was his campaign manager. there has been a void that has not been filled in the trump campaign. somebody could be by donald trump's side when he's on the road. that he can listen to him vet. that he can also listen to, a trusted adviser with whom he has a personal relationship. thing that is a role you'll see conway step into. and i think withbannon, it is an acknowledgement from trump that he wants to double down, basically, on s strategy that

he had in primaries, of getting out there, doing huge rallies. the question is, is this going to expand his base or simply energize his base more? >> but, hallie, help me out on the timing. i watched donald trump's policy speech last night. i went to bed, i don't know, 12:30, thinking, see you tomorrow. why come out with this in the middle of the night? did something happen? >> reporter: here's what a campaign adviser was telling me this morning. i asked that. i said, listen, the other part of it, the messaging from donald trump's law and order speech last night was something they wanted to perpetuate. i said, what was that about, coming out overnight to break this news. we were told, time is precious. we've got 83, 84 days left in this campaign, and the campaign understands, at least this is what they're saying to me privately, they wanted to get this news out as quickly as possible in order to turn the corner and release it. there were question marks about whether it had been leaked or was going to be leaked, but

regardless, you saw the news break overnight. i don't know why you're going to bed so late, though. >> it's all about news. now i'm going to bring in ken mckay, head of the pro-trump super pac, rebuilding america now. ken, you were with me last week saying, we're staying the course, we're on the right track. what do you make of this shake up? >> i really don't see it as a shake up. i was surprised when i got up this morning and started hearing all of this. this is what campaigns do. you add people -- >> no, no, no, no. it's not adding people. paul manafort runs the show and he got demoted. how is that just adding people? >> i don't see that as a demotion at all. in other words, you have a campaign and it's been woefully thin the whole time. the campaign is often enrolling and theye starting to realize, hey, w need to get some more folks in to do certain jobs, to do certain things. you can't travel all the time. you have to run an operation. so somebody has to travel with the campaign. it can't always be the campaign manager. you have to have people in the office who run the operation.

you have to have a comes team that's talking to your surrogates. a comes team is divided up into a number of different sections. when you look at the organization of the campaign, there's kind of different segments, right, the fund-raising, the messaging. it takes a lot. and so this campaign has always been thin, remarkably thin. and look, i managed governor christie race. they beat us, and i thought, man, i'm going to have a hard time telling candidates in the future you've got to hire all these people. he didn't. so i don't see it that way at all. i really don't see it that way at all. i think they're bringing on people and giving them new roles. i don't think mr. manafort was demoted in any way. he's still the chairman of the thing. he took on more responsibility when corey left and i don't think that was tenable at all. you can't do it all. you have to have people, you have to be able to delegate. and so i think that's what this is a piece of. that's what it looks like to me. i don't talk to them, but that's not what it looks like to me. >> so you think they're taking the existing plan and beefing it up? >> i don't think there's a strategy change. this is an insurgency.

hillary clinton has been building her campaign for eight years, that we know about, probably more. they have hundreds of people, they have all the money they need. they are a team of the establishment and they're going to use the money and the clinton money machine to fund as many people as they have. this campaign started from nothing and has grown and it's a group of people who want to storm washington to change things. unlike hillary clinton, who wants to go down there and will lie for power. and so i feel like in an insurgency, you add people as you go, especially with a businessman as a candidate. you know, when you have professional candidates, the consultants have already gotten to them, and they understand what they're going to have to do, and you know, they begrudgingly in some instance, just go along with it. i find when you work for governor scott, who's the chairman of our pac, rebuilding america now. and he's raising a lot of money for us, so thank god for him. but, you know, he was the same way, on his race. he wanted every nickel explained to him. that's the way these guys are. i hope that's a great thing. i hope donald trump goes to washington and does the same. >> when you and i last spoke,

you said, he's a business man, we want him to focus on jobs, the economy, that's what he does. but bringing on these two people. some are saying, this is going to be donald trump being trump. getting unleashed. is that a concern for you? >> no. >> why, because i don't see him that way. if kellyanne conway is a really smart, calm, emotionally intelligent professional. and i don't see her being the type that would go in there and rah-rah some candidate who's making an emotional decision. i see her as a calming influence on the road. >> then, okay -- stephen bannon described as the most dangerous man in america. that doesn't seem like a common -- >> i don't know him. but what i do know about him, and i just read this morning, navy -- former navy veteran, got his mba from harvard business school. i think that he's probably an operations guy at heart. >> former goldman sachs partner, when many, many trump supporters are anti-wall street. >> hillary clinton has taken 48

or some million dollars from hedge funds and wall street people. i don't think having one guy who used to work at goldman sachs or ten guys who used to work at goldman sachs is going to affect donald trump. donald trump will be donald trump, in my eyes. i've never -- i haven't seen him change yet. i think the guy's going to go out there and campaign and be who he is. i'm okay with that. i'm pro-trump. i want this guy to go out and say, wake up! we demand change now. i think that's going to continue happening. >> whether or not you know bannon, you know breitbart, and breitbart pretty aggressive. >> yeah, it's pretty aggressive. i don't read those sites or follow that stuff. but i remember andrew breitbart and some of the things they did early on, but i don't know this guy. >> i want to talk about fund-raising. donald trump finally, he's got that 60 million bucks he's been sitting on. he's going to spend it on some ads. that's got to make you happy. >> thrilled! >> why now? does it seem like there's a change in strategy? >> no, there's a change in time. the election is getting closer.

and so when you see businessman candidates or guys who, you know, come from that world, they don't just do what you want them to do. i think people would have spent a lot more -- other candidates would have spent a lot more money sooner on ads. and he didn't. >> and maybe should he have, given what the polls have done in the last two weeks? >> i don't think the polls -- no, i think he's right. i think he's -- you've got to have the money at the d. you'll regret not having that money in october. you've got to time it out and you have to have a budget. and i'm sure that's what they're doing over there. they're not reacting to polling daily. they have a plan. i'm sure. i don't know what it is, but i'm sure they have it. that's what it feels like to me. so i -- but i don't talk to them, i can't talk to them, but at rebuilding america now, governor scott is raising money. we raised about 10 million and put $10 million, a little more than $10 million on the air and we're running ads and we're going to continue to do that. and more firepower is better. the democrat machine has booked over $100 million of tv. so it's all necessary and i'm thrilled that he's doing it. and i trust that he has a plan and we're going to keep on chugging. >> ken, thanks for joining me

this morning. >> thank you. >> ken mckay, who's leading the trump super pac. coming up, the fbi just released its notes of that investigation into hillary clinton's e-mail to the house oversight committee. here's a question, what exactly did they reveal? we're going to have a member of that committee, next. my business built with passion... but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?

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don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. now i have less diabetic nerve pain. ask your doctor about lyrica. welcome back. you are watching msnbc. and it is time now for your morning primer. everything you need to know to start your day. we begin with another shake up in the trump campaign. stephen bannon has been named ceo of the campaign and pollster kellyanne conway named the campaign manager. paul manafort will remain own as campaign chairman. this afternoon, donald trump will receive his first classified intelligence briefing from the office of the director of national intelligence. mr. trump will bring new jersey governor chris christie and retired lieutenant general, michael flynn, with him to the briefing. more than 82,000 people have been forced to evacuate, as fast-moving fire is burning out

of control in southern california. the blue cut fire started just yesterday morning and has already burned more than 28 square miles. liz cheney, daughter of former vice president, dick cheney, defeated seven challengers to win the republican primary for wyoming's u.s. house of representatives seat. the same seat her dad was elected to five times. and a very sad story. a legendary talk show host, john mclaughlin, passed away on tuesday at the age of 89. the former catholic priest and nixon speechwriter hosted his weekly talk show for more than 30 years. well, a congressional committee now has official access to notes taken by fbi agents while they were interviewing hillary clinton. republican lawmakers requested access, in part, to see if clinton perjured herself during testimony earlier this year. however, the fbi is warning against leaks, because their notes contain sensitive and

classified material. with me now is democratic congressman matt cartwright of the state of pennsylvania. he is a member of the oversight committee. matt, just to be clear, you have not yet seen the notes and your staff haven't seen them, correct? >> well, that's right. and good morning, stephanie. i'm coming to you from beautiful piston, pennsylvania. our hearts go out to the folks in louisiana and california for the terrible things going on there. but we want you to know, we're getting ready for the piston tomato festival there this weekend. >> all right, well, we don't want any of those tomatoes being thrown at candidates. we need to talk about your candidate, hillary clinton. walk us through what you think we could be seeing in these notes and how concerned you are. >> well,eing beating a dead horse to an art form at this point. and it's no secret what's going on. there's no guesswork involved. this is orders from headquarters. in fact, i wrote down what paul ryan said a couple of weeks ago.

he's talking about the trump campaign. he said, yeah, he's had a pretty strange run since the convention. you would think you ought to be focusing on hillary clinton. one would think that we'd be on offense against hillary clinton, and it is distressing that that's not what we're talking about, these days. and so the message is very clear from the top of republican leadership in the house that they've got to continue to trash hillary clinton and that's what this is about. now, i'm on the oversight committee, and on july 7th, fbi director james comey testified. and he made it very clear, crystal clear, that no reasonable prosecutor would bring any sort of case against secretary clinton, involving the e-mails, and that was after a complete review by what he called an all-star team of investigators that unanimously concluded that hillary clinton didn't do anything, even

approaching prosecution justification. so -- >> yeah, he did, but it's not like he gave her a stellar review and an a-plus. i want to just share with you for a moment, not for republican leadership or democtsho are saying, beating a dead horse. just for confused americans out there, who are saying, what exactly happened? i want to share a bit of video of hillary clinton, when she was speaking before your committee, and then later, just a month ago, james comey. please take a look. >> nothing was marked classified at the time i sent or received it. >> was that true? >> that's not true. there were a small number of portion markings on, i think, three of the documents. >> i provided the department with all of my work-related e-mails. >> secretary clinton said all work-related e-mails were returned to the state department. was that true? >> no. we found work-related e-mails, thousands, that were not returned. >> did someone physically look at the 62,000 e-mails or did you use search terms, date parameters? i want to know the specifics.

>> they did all of that. they also went through every single e-mail. >> did her lawyers read the e-mail content individually? >> no. >> you're an attorney. i'm not. but i'm definitely a confused american when i watch these things. how is that not perjury? >> here's what we established, when i questioned director comey. the question was, were there things marked classified that she sent or received? and out of the tens of thousands of e-mails that they were reviewing. only three of them had any markings atsoever suggesting a possible classification. and there's a clip from that. i wish you guys would run -- >> but only three is not zero. hold on a second. only three isn't zero. you either did it or you didn't do it. no? >> okay, stay with me, stephanie. >> okay, i'm with you. >> what we're talking about is we had three e-mails that had

little cs buried in the text somewhere. i had the manual, and the manual for classifying documents makes it very clear, if you're going to classify something, there has to be a heard that says "top secret" or "classified" or "confidential," one of the levels of classification, there has to be a heard on the document. and the an sen sense of that header would have told someone who understood this system immediately that these documents are not classified. i put that question to director comey with and he said, yes, that would be a reasonable inference that anything not bearing a header is not classified. so, if we talk about three documents that, by the way, hillary clinton did not send, she received, that have a little "c," which would indicate confidential, the lowest level of classification, somewhere in the text, that would be an improper classification marking and the absence of a header would tell her that that is not

classified information. so director comey said that very planl. and i have to say, it's a stretch to continue beating this dead horse. now, what has happened is that the republicans on the committee have asked for the notes of the interview that the fbi did with secretary clinton and, essentially, what this is, it is investigating the investigators. they're not happy that the fbi, you know, the chief investigatory body of the law enforcement of this country, have concluded unanimously that hillary clinton didn't do any wrong. they're not happy with that. so now they're second-guessing the entire fbi, which is really, as i say, this is amazing, the level that they're going, but as i said at the beginning, they're just following orders from headquarters. we've got to continue to beat up on hillary clinton, because, god forbid, we would even want to talk about donald trump and how his numbers are crater right now. >> congressman cart wright, thank you so much for joining me

this morning. i appreciate your candid thoughts. matt cartwright from the state of pennsylvania. coming up, breaking news as a ferry carrying hundreds of people catches fire in puerto rico. we're going to bring you the latest. ♪ ♪ ♪ don't just eat. mangia! bertolli.

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puerto rico police, saying that there was this fire onboard, and that they were abandoning ship. about 45 minutes later, the u.s. coast guard initiated a response. they're now on the scene, a they're plucking these 512 passengers off that ship and pu putting them on to a u.s. coast guard cutter. this is a 14-hour journey, this ferry. it leaves from the dominican republic and gets to san juan at 8:00 a.m., at least it was supposed to. this fire, we're hearing reports it has broken out in the engine room. no reports of any injuries. it seems like the sort of emergency response has taken place the way that it should. at first the puerto rican police were called and the u.s. coast guard, which has a very heavy presence in this water. this is the southeast division of the coast guard. a very heavy presence to stop drug trafficking. was able to get this ship within 45 minutes, which may be the difference between what could have been a tragedy and getting these people off safely.

>> clearly something we need to be watching throughout the morning. at least so far, no injuries. let's hope it stays that way. thanks, cal. coming up, the trump campaign continues to get in its own way, after a day and a half on message, the leadership shake up has once again grabbed the headlines and not in a good way. that's next. it's time for the "your business" entrepreneur of the week. on june 27th, dstld became the first fashion company to raise capital through the newly approved equity crowd funding. customers who love the company were now given the chance to own part of it. find out if attornowners raised money they need. will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order

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we're legalzoom, and for over 10 years we've helped families just like yours with wills and living trusts. so when you're ready, start with us. doing the right thing has never been easier. legalzoom. legal help is here. we are getting more breaking news right now about donald trump's surprise campaign shake up. move over, paul manafort. senior campaign adviser, kellyanne conway has been officially promoted to campaign manager and conservative of breitbart news steven bannon will come on as ceo. manafort will stay on as campaign chair. and we've got to break this down. let's bring in julie pace and katy tur who's been covering the trump campaign from the beginning. she's outside trump tower here in new york city. you just talked to jeff sessions of alabama, a man who knows mr. trump well. what'd he tell you?

>> reporter: senator sessions just walked into trump tower with one of his aides and he told me he's extremely excited by the addition of kellyanne conway. i asked him if this was a change because things had been rocky with paul manafort, but he dodged that question, instead telling me, letting trump be trump has worked for him in the primaries and he believes that's going to continue working for him. the idea that somebody can change, trump, he laughed off when i asked him about that. he's here for an immigration security roundtable, a terror roundtable. we're still trying to figure out more details as to what that is and whether reporters will be allowed in on that roundtable. but senator sessions here this morning, he said he had nothing to do with the changes, but he seemed to be excited by them. >> let trump be trump. julie, i know one of your colleagues spoke to donald trump after he spoke last night. what'd he say? >> trump says that he's excited about this, as well. he cast this as an expansion of his campaign operation, said that he is promoting and

bringing in people who are really experienced and are going to really add to his campaign operation. and i think the question is, in what ways will they do that? are we going to actually see trump doing anything to expand his operation in the battleground states, for example. we know that the campaign is going to start going on-air with their first general election ads this weekend. that is a shift. so does this signal that there's going to be some kind of operational changes, or is this really people coming in and giving trump free rein and letting him do the big rallies, do a lot of media appearances, and let trump be trump. >> i guess what confuses me, the let trump be trump, he has been exactly donald trump over the last two weeks, and it's why we've heard from a number of members of gop leadership, who have said, he's gone too far, i can't support him. katy, i want to share with you, cnbc's john harwood just tweeted this. quote, top gop strategist tells me trump campaign shake up will accelerate the party move to shift resources towards

house/senate races, away from donald trump. so if you're seeing the gop leadership say, he's not going to stay on message, he's going to continue on this path, does it really seem like they're going to say, you know what, donald, forget it? >> the party leadership says pushed back on that idea, that they're going to redirect resources, quite forcefully. but in the past, that has been a conversation that has been ongoing. i mean, i have been talking to sources about the idea of that for going on six, seven months. that is nothing new. whether they actually start to do it, we're going to wait and see. remember, they need donald trump to fundraise for them. they can't complete cut him off. he is still the one that's bringing in the bulk of the money. this idea that he's going to go back to let trump be trump, i totally understand what you're saying by that, stephanie. he has been himself. the difference is, now this seems to be a turn towards donald trump not only running against hillary clinton or against the media, but in many ways, against the establishment, even the republican establishment. paul manafort was trying to get

him onboard with republicans on the hill. he was trying to get him in line, more, with traditional republican messages. get him to get along with paul ryan or mitch mcconnell, and so forth. this is an indication that donald trump will go back to running against the establishment, much in the same way he was doing during the primary. not needing endorsements from paul ryan or mitch mcconnell, not needing kelly ayotte to be on his side or john mccain. that is what has been effective with him in the primaries. they're going to start to do that again. remember, they point to this 11% approval rating for congress, as a reason they don't need anybody on the hill. they don't need these establishment figures behind them, because they're not popular to begin with. >> julie, is that the case? they don't need -- donald trump has had in his narrative, "i alone," and if you look at the poll numbers, "i alone" isn't working for him. julie? >> i'm sorry, go ahead. >> it's a big gamble for trump at this point, but i think katy is right.

the one takeaway in bringing on someone who has been running breitbart news is that trump is doubling down on this idea that he is a populist outsider. been supportive of donald trump's campaign and critical of people like paul ryan and mitch mcconnell and the broader gop establishment. the queson tha trump still needs to answer is if he's not going to be an l-inclusive republican, not going to be a figure who can unite his party, how will he get enough votes to win in november? right now he has a very solid base that is very loyal to him, but that's not enough numerically to actually wen the election. i don't think we know the answer from him to that question. >> we don't know the answer to that question, but guess what? we'll be covering it for the next few months and find out the answer. julie pace, katy tur, thank you for breaking down the chaengs a bit more. coming up, it was another wet night in louisiana as the evacuations continue. we'll take you back to the flood zone next.

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the historic flooding gripping louisiana has more communities downstream preparing for the worse. thousands are scrambling to get to safety. the weather channel's mike seidel is in crowley, louisiana. mike, give us an update. what are you seeing here? >> reporter: you can see this, stephanie. it's one neighborhood under water. i'm joined by shane spelino. he's been in this neighborhood for 30 years. never seen anything close to this. >> no, i haven't. >> what about the water. we've been seeing it kind of come down an inch or two. we or not out of the woods because the mendenhall river still has to crest and that's not expected until friday morning. >> exactly. the river will crest at 1'15" and we're at about 10' 5." >> this is what happens when you

have 25 to 30 inches of rain on the watershed. when the rain started to back off on saturday, shane was telling me this neighborhood was basically dry, but then all that water comes down these rivers and bayous. we saw it yesterday in ascension parish. some areas dried out. in denim speaks where the river topped its all-time record crest by 4.5 feet, it's dropped down 14 feet and those folks are cleaning up. the water has to head towards lake upon ch trane and mississippi and this eventually heads to the gulf of mexico at some point. stephanie, a long way to go here, the cleanup kicks in. mold, mildew, remediation and more showers and thunderstorms in the forecast this afternoon and tomorrow afternoon. >> that water is deep. those boys are on a boat. mike seidel joining us from the weather channel. coming up, the head of fema in louisiana to get a first-hand look at the devastation will be joining us live. that's coming up.

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that wraps us up this hour. you know what i'll be doing later today, and i hope you will, too. catching olympic coverage at 11:00 a.m. eastern here on msnbc. i'm welcoming the man just back from rio, my "today" show partner craig melvin. welcome. >> great to be in rio, good to be back. good morning, we continue to follow the major shakeup in the trump campaign with just 83 days until the election, donald trump bringing in a new campaign manager for the second time in two months. the new face at the top of the campaign, steven banon leaving breitbart news for the role of trump campaign manager. kellyanne conway promoted to campaign manager while paul manafort remains the campaign chairman. corey lewandowski praised the picks.

>> if you look at steven banon and what they built at breitbart, it's win at all costs. i think that makes people on the left very afraid because they're willing to say and do things some people wouldn't do. it's important kellyanne is with him. he needs a high profile that can listen and understand what the gender gap is right now. >> moments ago, cnbc's john harwood reporting a top strategist tells him the shakeup will accelerate the party's move to shift resources away from trump and toward house and senate races. we start, as we frequently do, with nbc's katy tur. she's at trump tower in manhattan. she has followed the ups and downs of this campaigns for more than a year. what are your sources telling you about what's behind this shakeup? >> reporter: my sources are telling me this is donald trump going back to being donald trump. the time