Sanders, Warren prepare to square off in second Democratic debate

This is a rush transcript from "The Story," July 30, 2019. This copy may not be in its final form and may be updated.

SANDRA SMITH, HOST: We'll be watching you and Shannon later tonight. Thank you, Bret.

Good evening, everybody. I'm Sandra Smith, in for Martha MacCallum, and this is “The Story.” As the president continues to hammer Congressman Elijah Cummings over the "hell and corruption", he says are plaguing Baltimore. The city's mayor says the president should do this.

(BEGIN VIDEO CLIP)

MAYOR BERNARD YOUNG, BALTIMORE, MARYLAND (via telephone): My message to the president is stop tweeting and send federal health and federal resources to the city of Baltimore.

(END VIDEO CLIP)

SMITH: But tonight, that is exactly what the Trump administration says, it has already done. And the president wants to know where are those billions of dollars had gone.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT: What Elijah Cummings should do is he should take his Oversight Committee, bring them down to Baltimore and invest all of the -- and really study the billions and billions of dollars that's been stolen. It's been wasted, it's been stolen.

(END VIDEO CLIP)

SMITH: In just moments, Brit Hume on how all of this is playing out for voters. And Lara Trump will take us inside the campaign strategy going forward. But first, Fox News correspondent David Spunt is here to break down the Baltimore numbers. David, good evening.

DAVID SPUNT, CORRESPONDENT: Sandra, good evening to you. The president continues to talk about giving billions to a district, he says, cannot account for that money. Exactly, how much money did the Trump administration give to Congressman Elijah Cummings' district? Well, it depends who you ask, but we're looking at the actual numbers and have them tonight.

(BEGIN VIDEO CLIP)

TRUMP: All of this money goes there and take a look at it. I don't have to describe it. Take a look at it. So, there's no strategy. It's very simple. And Elijah Cummings is in charge of it. And he ought to take his Oversight Committee, and he ought to park them in Baltimore and find out what happened to the $15 billion and a lot of other money.

(END VIDEO CLIP)

SPUNT: The president says, $15 billion. Now, according to publicly available data, the total federal obligations for Cummings' district in fiscal year 2018, $9.2 billion and $6.5 billion so far in fiscal year 2019. That adds up to around $15.7 billion over the past year and a half.

Now, much of that money went towards grants to the city of Baltimore, contracts, to minority-owned businesses loans, to universities and other financial assistant programs for what they call everyday citizens.

Now, taking a closer look, Sandra, the Department of Health and Human Services awarded around $3-1/2 billion in Cummings' district, compare that with the Department of Veterans Affairs, it awarded just under $68 million. And the Department of Transportation for roads and bridges in that area just a little over $100 million.

Baltimore's mayor admits the city has problems but thinks President Trump can play a role in fixing those problems.

(BEGIN VIDEO CLIP)

YOUNG: He's talking about he wants to make America great again, then put the money in the cities that needed the most. And that's the way you can make America great again. But what he's doing is he's making America the laughing stock of the world.

(END VIDEO CLIP)

SPUNT: Now, there have been serious allegations when it comes to mismanagement of money in Baltimore. And the 2014 Department of Housing and Urban Development ordered the city to repay nearly $4 million in grants. Auditors have routinely criticized the city of Baltimore for failing to account for its spending of federal dollars, warning that those grants could be taken away. But at this point, they remain in place, Sandra.

SMITH: All right, David Spunt, thank you for breaking that down for us. Joining us now, Charlie LeDuff, a Pulitzer Prize-winning journalist who has traveled the country, speaking to real Americans about issues just like this.

Charlie, we appreciate you coming on the program tonight. Thank you for being here.

CHARLIE LEDUFF, PULITZER PRIZE-WINNING JOURNALIST: That was my pleasure.

SMITH: So, our own Lawrence Jones decided to go to the streets of Baltimore and walk around, talking to everyday Americans there about what they are seeing on behalf of the politicians. Much like you do in the city of Detroit, and here's some of the response he got.

(BEGIN VIDEO CLIP)

LAWRENCE JONES, CONTRIBUTOR: Tell me about your leaders here, right?

UNIDENTIFIED FEMALE: Leaders?

JONES: Yes, your elected officials. What are they doing?

UNIDENTIFIED FEMALE: I think they bought, they sold, they sold out.

(END VIDEO CLIP)

SMITH: So, Charlie, what are we seeing in Baltimore? Is this another example of political leaders and a major disconnect for the people that they -- between the people that they serve?

LEDUFF: It's hard for me to know, you know, I've been to Baltimore, it was Baltimore when Baltimore was burning. I know there's a lot of issues in Baltimore. But I will tell you in terms of federal money, federal contract money, Baltimore is a lot like Detroit.

We have deep problems with crime, that police are underpaid. In Detroit, they send us a quarter billion that tear down our blight. And what we have for it now is a federal grand jury on public corruption who were convened today. That's this mayor.

Our mayor, when he was running the public hospital was fine $30 million for fraud and kickbacks with Medicaid. We had the problems with our Airport, we had with our county jail. This is politics, this is what everybody's angry about, this is we do want the swamp drained.

I'm not a pro-Trump guy and I'm not anti-Trump, I reported.

SMITH: What's the solution, though, Charlie? Because you see what's happening here. The president's --

(CROSSTALK)

LEDUFF: What's this --

SMITH: The president's pointing out that nearly $16 billion went to the city in one year alone, and the city officials are asking for more.

LEDUFF: Well, here's something we should do. In Detroit tonight, we have the international media here, right? How about the media does some work and keeps track of this? Why are we now taking a look at Baltimore's books and Detroit's books? Why doesn't The Baltimore Sun tell us every day what's going on with this?

Here in this city, we've got a Community Development Block Grant. We got HUD money being frozen. We have the mortgage company being hit for fraud. That there's nothing wrong with the system in America. The problem is our culture is corrupt and were greedy. And nobody's keeping an eye on it.

SMITH: Well --

LEDUFF: And the great writer, David Simon from Baltimore, you know, he did The Wire. He said this is going to be a Shangri-La, while the media collapses. And we try to figure out how to pay for ourselves. It's going to be a Shangri-La for corruption.

(CROSSTALK)

SMITH: Well, you been making the problem even worse, there had been some investigation, there are currently some investigations, not a lot he's come from that. And that's why you've heard the president call for an investigation as to how these dollars were actually spent?

I want to switch this now to Detroit. The city in which you, you sit and that you cover.

(CROSSTALK)

LEDUFF: Yes. That I love -- and love.

SMITH: And you - and that you love and walk -- you walk the streets every day, you have been talking to people. Leading up to these debates tonight, what are the people on the ground there want to hear?

LEDUFF: You know what, people on the ground aren't even going to watch them and watch the ratings. You'll see them, but they're not watching them. I did a poll, cops, blue-collar people mechanics, you know, professionals. 28 out of 50 people don't have $1,000 at their disposal.

We've got the worst power grid in the nation, we've got the worst roads, you know about the water. We've got some of the poorest schools. Our real wages, our family income is dropping. Yes, dropping with inflation.

What we want to hear is how are we going to feed the kids? We want to know where our money is, we pay a lot for schools, a lot for roads, a lot for water. Some of the highest in the country. And we got but kiss, nothing, we're sick of it too. So, come here, tell us what you're going to do.

SMITH: With so -- with Michigan playing such a huge part in 2016, and obviously, huge part in the upcoming presidential election in 2020, what could the Democrats on those debate stages the next couple of nights, what could they do to stand out? Because we know that President Trump won narrowly in that state.

LEDUFF: Yes.

SMITH: And there is an opportunity for these politicians. Final thoughts, Charlie.

LEDUFF: Well, they have to be here, because you're not going to win if you don't take Michigan. So, all of the sudden, we're like the middle of this whole thing. That's why they're here. You just talk the truth.

You know what, busing is 1974. The buses don't run on time. Give me something real and, at least, tell us you know how we're living. Don't come in here all pampered up in your girdles, and your makeup, and your throwaway lines. Let us know you know.

SMITH: All right. Well, Charlie, great to hear from you.

LEDUFF: You, too.

SMITH: And thank you for the work that you do. All right.

LEDUFF: Thank you.

SMITH: Here tonight, Brit Hume, Fox News senior political analyst. Brit, good evening to you.

BRIT HUME, SENIOR POLITICAL ANALYST: Hi, Sandra.

SMITH: Obviously, you are watching on and you're awaiting these debates to happen as well. Leading up to this, this ongoing feud with Elijah Cummings, it has continued to roll on.

The president was asked today when he was departing for Virginia, whether or not this is a strategy that he's deploying and here was his response.

(BEGIN VIDEO CLIP)

TRUMP: There's no strategy, I have no strategy. The zero strategy. All it is, is a pointing out facts.

(END VIDEO CLIP)

SMITH: So, is this all helping or hurting the president?

HUME: Well, I'll say this, Sandra. I don't -- I don't always believe everything the president says, but I believe that. I don't think there's anything the least bit strategic about this outburst he had against Elijah Cummings.

The president's outbursts and his attacks on people are about -- mostly about one thing. Those who have attacked him or his administration or his family. And Cummings, in this instance is had done a bit of all three.

He's criticized the president, he attacked his homeland security acting chief, and he -- and he subpoenaed material from members of his family. So, Trump did what Trump does, he counterpunched. I don't think he thought through particularly what he was going to say, he reaches for whatever he can find, whatever comes to hand to attack Elijah Cummings.

So, he attacks him based on the condition of parts of his congressional district. This is very typical to Trump. I don't see any strategy in it, and I don't particularly see any racism in it either.

SMITH: It's very interesting because you just heard from Charlie, who covers the streets of Detroit, they're referencing Baltimore, and talking about the attention that now is on that city that desperately needs help, Brit.

The president at the very least, has everybody talking about it.

HUME: Yes, but -- yes, but I don't believe for a minute that the president says, "I'm going to do this in such a way as to cast light on Baltimore and thereby promote the ideas that are necessary to solve Baltimore's problems, which have been present in that city going back to the days when I worked there, you know, 45 or 50 years ago.

Baltimore is an amazingly interesting city, it's a -- it's a charming city in many ways.

SMITH: Yes.

HUME: With much to offer but it has had for a very long time some very seriously distressed neighborhoods and a very serious crime problem, and that persists to this day. And I don't think that's -- that solving that is only what the president was trying to do here.

SMITH: Well, Charlie also just called on, on the media to dig into this deeper. So far, this is what we have seen from the media, here is just a little bit of it.

(BEGIN VIDEO CLIP)

DONNY DEUTSCH, CONTRIBUTOR, MSNBC: There's so many stunning parallels to what Hitler was doing.

CHRIS MATTHEWS, HOST, MSNBC: Infested, infested, infested, it's a word, it's vermin. It's a Hitlerian term.

APRIL RYAN, POLITICAL ANALYST, CNN: Let's talk about the word, infested, when it was used against our Jewish brothers and sisters during the Holocaust. There are awful references that this president is making and it needs to stop.

(END VIDEO CLIP)

SMITH: Some pretty strong comparisons there.

HUME: I know, but Sandra, for Pete's sake, he's talking about animals, he's talking about rodents. He isn't talking about people. Look, we cannot possibly be at a place now in America where you cannot criticize the condition of somebody's congressional district who happens to be African- American without being accused of racism.

You know, for a long time, if you're critical of someone who is a darker skin color, black or brown, you were accused of racism. Now, you're talking about the rodents in their districts, and that's racism. My own view of that is it's positively absurd.

SMITH: I want to read to this, this political quote to you. It's said, piece titled, Trump ceases based growing from Democratic sparring, Brit. "When the Democrats running for president all agreed at their first debate that public health insurance should cover undocumented immigrants, the Trump campaign saw an opening. The president's reelection team believes trumpeting these moments will help win over a certain type of voter. It's the voter who might be wary of Trump. But is more alarmed by a Democratic Party they feel is drifting dangerously to the left."

Is that happening? Do we see that happen on that stage tonight?

HUME: Well, I'm interested to see you won't it, Sandra. Whether these people continue to -- numbers of them continue to embrace these positions which I think to a great many Americans would look -- would seem quite extreme.

You know, the health insurance plan that would end up eliminating health coverage that people get from their employer that they like, and -- you know, they're what some 180 million people who get their insurance that way.

That's a -- that is a political loser if there ever was one. Reparations for slavery is another. The list goes on, and it's going to be interesting to see what Democrats have who have climbed out on these limbs will be able to climb back, or whether they and their party will be labeled in this way in a way that carries over into November. It's a very real risk for the -- real risk for the Democratic Party.

SMITH: Could be a make-or-break moment for some of those that are looking to make a move in this race. Brit Hume, always good to talk to you. Thank you very much.

HUME: Yes, Thank you, Sandra.

SMITH: All right. Lara Trump on all of this. She will join us, next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TRUMP: Congratulations on four incredible centuries of history, heritage, and commitment to the righteous cause of American self-government. This is truly a momentous occasion.

(END VIDEO CLIP)

SMITH: Well, that was President Trump today in Jamestown, Virginia commemorating the 400th anniversary of the First Representative Assembly in the Western Hemisphere. But not everybody was celebrating with lawmakers from the state's legislative Black Caucus and some other Democrats skipping the event citing rising racial tensions. One delegate who did show up interrupted the President's remarks to chant in protest.

(BEGIN VIDEO CLIP)

TRUMP: Right here in Virginia, your predecessors --

UNIDENTIFIED MALE: Mr. President, you cannot send us back. Virginia is our home. Mr. President, you cannot send us back. Virginia is our home.

(END VIDEO CLIP)

SMITH: The Virginia lawmaker later defended that disruption tweeting this. Nobody's racism and bigotry should be excused for the sake of being polite. Here now, Lara Trump, Trump 2020 Campaign Senior Advisor. Lara, great to see you.

LARA TRUMP, SENIOR ADVISOR, TRUMP 2020 CAMPAIGN: Hello!

SMITH: Thanks for being here tonight. Hello to you.

L. TRUMP: Yes.

SMITH: So the president is celebrating marking the birth of democracy, giving that speech there today in Virginia and interrupted by a protester, a delegate who's defending his decision to do that. What's the campaign's response to that?

L. TRUMP: Well, what you hear here is nothing different than we always hear about the President. It's always a call of racism. And my problem with this and I think so many people's problem with continually using racism when we know that that is not true, when it is just a talking point for the left and so much of the mainstream media, is that when it actually is true, when there's real racism, people aren't going to pay attention to it anymore because people are so sick of hearing this narrative.

Nothing that the president said this past week was -- had any racist tones. Of course, people will try and make that insinuation, but you know, it's not surprising. Of course, there's protesters that gentleman had a right to protest, but it's a shame that more people can't celebrate what the President did here today.

SMITH: Is it a concern of the campaign that there you have the legislative black caucus deciding to boycott the event and not even show up?

L. TRUMP: I think it should be a concern of their own. I mean, unfortunately for them if they wanted to see some movement on something happening in Baltimore, here was a great time. They could come meet with the president and say you've called out what we know to be true. Baltimore is in shambles right now.

This city and its people have been ignored and forgotten and how can we help. How can we move forward? We know that you gave $16 billion in federal grants last year to Baltimore and to this specific district. Where has it gone? What has been done with it?

SMITH: The President was asked when he was departing to Virginia today if he had any regrets over this feud over Baltimore and the rising feud with Elijah Cummings. He said no. Is there a strategy the President is deploying he said no to grow the President's base? I mean, what politically is at play here?

L. TRUMP: I mean, I think that -- I would give credit to the president for finally putting some light on a city that obviously has been left behind by its leaders. And you know, I don't -- I don't see any strategy to it other than the fact that unfortunately, this is a city who -- where you see that the crime rate is through the roof. It's not the same homicide rate as El Salvador where people are fleeing to come to this country. And at least somebody is saying let's do something about this.

SMITH: If it's not Baltimore though, does the president have a goal to grow his base? Because Brad Parscale, head of the Trump Campaign, he's suggesting this isn't about winning over new votes for the Trump campaign. Here's Brad.

(BEGIN VIDEO CLIP)

BRAD PARSCALE, CHAIRMAN, TRUMP 2020 CAMPAIGN: Only about 70 percent or so the population turns out to vote. We need to find those people. We need to get them to show up and get them to vote. It's not about trying to you know, go out there and try to you know, find some voter and change his mind. It's about getting the ones that support the president now get them to show up to the polls and vote.

(END VIDEO CLIP)

L. TRUMP: Well, I agree with that. First of all, I have always said, I think the people that voted for Donald Trump in 2016 will 100 percent come back out and vote for him in 2020. But you are going to see a lot of people that did not vote for this president in 2016 for whatever reason it might be, and their life is a little bit better now.

They have more money. They have a better job. They see opportunity growing for them in this country, and they don't want to change that especially, Sandra, when you contrast that with what we see on the other side. And we're going to hear a lot about it tonight at these debates.

SMITH: You know, it's interesting, Politico had a piece why a strong economy will actually help Democrats in 2020. There are these regional pockets who have not benefited as much of the rest of the nation, and they see their vote for Donald Trump is not getting them perhaps a new job or a higher wages, or whatever that may be. I'm sure that's something you're looking at within the campaign.

But I'm sure these numbers are also a concern for you when it comes to women. You and I have chatted about this for quite some time. Here are the approval ratings of the President in his handling men 47 percent approved. OK, we've got that. Women 34 percent, 61 percent right now disapprove of the president's -- the president's job right now.

Black six percent approved, Hispanic 40 percent which is a high number by the way. But how do you win over those female voters?

L. TRUMP: Well, we're working on that at the campaign. We launched a couple weeks ago our women's coalition, Women for Trump. We had over 1,000 women in Pennsylvania show up. We're going to replicate this across the country.

We want women to know that you can support Donald Trump. And we want them to talk to their friends and talk to their co-workers and explain to them why this President is so good for women.

SMITH: I get that, but you know, you don't have to look far to see even though the women who support Trump that let's say you know, well, some of this rhetoric it gets to them, some of the tweets it gets to them. Do you fear that any of that is going to take away from some of those women who did ultimately vote for the president in 2016?

L. TRUMP: You know what, I don't think so. I think when push comes to shove at the end of the day, when people are in a voting booth, whether you're a man or a woman and you really reflect back on how things have changed in this country thanks to this president, and how things are looking brighter for you or your family, I really think people are ultimately going to vote for Donald Trump.

SMITH: All right, throw up the new ad because this is going to be in the Detroit Free Press.

L. TRUMP: Yes.

SMITH: The campaign just put this out. They are all the same. And pictured is those Democrats on the first debate stage saying that health insurance should go to all illegal immigrants in this country. It then lists the president's record of accomplishments. What Democrat on that stage tonight or tomorrow night does the campaign fear most? Who poses the biggest threat to Donald Trump?

L. TRUMP: I mean, I know I always say this, but we feel very solid at the campaign about the president's chances. And really I don't think anyone has stood out as really a strong, strong contender especially, Sandra, when you see people raising their hands for universal health care for illegal immigrants into this country, people who broke our laws, yet we're ignoring the people that are citizens of the United States.

So we're all looking forward to seeing what hand-raising moment we're going to have this debate and tomorrow night as well.

SMITH: But you must be planning on something.

L. TRUMP: Well, we'll see who it turns out to be. I mean, we have a long road ahead of us.

SMITH: Pick somebody. Who would you like it to be?

L. TRUMP: Well, I'd be happy with Joe Biden. I think the president would too.

SMITH: Why?

L. TRUMP: I just think that he really doesn't have the stamina to go alongside this president toe-to-toe when it comes to campaigning, when it comes to debating. He looked very weak in the last debate to a lot of people. So if it's -- if it's Sleepy Joe as the president calls him, we'll be OK with that.

SMITH: Some might think you're saying he's too old.

L. TRUMP: Well, you're only as old as you act and as old as you feel.

SMITH: Interesting. The president referenced him today. He does believe that Joe Biden will ultimately be his competitor on the general election debate so --

L. TRUMP: We're OK with that.

SMITH: So we will see. Lara Trump, always good to catch up with you.

L. TRUMP: Thank you.

SMITH: Thank you very much. Looks like somebody wants in on the nickname game.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Moscow Mitch says it's a hoax. We actually have a government led by Moscow Mitch. He's Moscow Mitch.

(END VIDEO CLIP)

SMITH: Charlie and Richard talk Moscow Mitch when we come back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TRUMP: I think the Washington Post is the Russian asset by comparison. Mitch McConnell loves our country. Mitch McConnell is a man that knows less about Russia and Russian influence than even Donald Trump, and I know nothing.

(END VIDEO CLIP)

SMITH: You don't hear that every day. President Trump responding to the bizarre claim being pushed by many Democrats and the media that Senate Majority Leader Mitch McConnell is actually a secret Russian agent.

And this is hardly nuanced. Here's one headline from the Washington Post. Quote, "Mitch McConnell is a Russian asset." The memes are everywhere labeling him Moscow Mitch due to his opposition of two Democratic bills supposedly aimed at preventing election interference.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL, R-KY, SENATE MAJORITY LEADER: These people have worn out the volume knob so badly that they have nothing left but the most unhinged smears. Welcome to modern-day McCarthyism.

(END VIDEO CLIP)

SMITH: Here now, Charlie Hurt and Richard Goodstein. Good evening to you both.

CHARLIE HURT, CONTRIBUTOR: Good evening to you, Sandra.

SMITH: Charlie, start us off here. It's hard to believe but they are calling it Mitch McConnell a Russian asset.

HURT: Yes, you know, it's kind of comical -- let me say the first thing, I love seeing Mitch McConnell swing back. And that is a page right out of Donald Trump's playbook.

If the media comes at you with this crazy insane stuff like this, if the media comes out with you with this crazy and stands stuff. You go right back at them, you go your bully pulpit and you hit them back. I love that.

But this insanity, this fantasy about the Russia collusion thing that has gone on for two years now that they have not been able to pin on Donald Trump, and now, they are just running around looking for anybody to pin it on, it is absolutely insane. This town has gone completely nuts.

And seriously, I think that you need a team of shrinks to come to Washington to deal with these people actually believe in this stuff because I'm getting to the point where I think that -- I used to think they were just lying. Now I think that they really do -- there something caught in her head and they can't get over it.

SMITH: Richard, the editor of the editorial page at the Washington Post is defending Dana Milbank, who penned this column, as a legitimate exercise in commentary. Making the argument that Senator McConnell's blocking of election security legislation will harm United States. I'm sorry to cut off my page.

Anyway, you get the point, he's taking the back of Dana Milbank here.

RICHARD GOLDSTEIN, DEMOCRATIC STRATEGIST: Right.

SMITH: These are the memes. They're all over the internet. I mean, they are everywhere after this happened. Your thoughts.

GOLDSTEIN: Yes. You know, I actually tend to agree with Charlie on this one. I think if Mitch McConnell had been in Helsinki, he would have believed our intelligence agencies, not Vladimir Putin. If Mitch McConnell was asked in his reelection campaign next year, if Russia comes forward and says we want to give you more dope -- stolen dope on your opponent, he would say no, unlike Donald Trump.

And if Mitch McConnell met with Putin again, he wouldn't say it was a big joke with a smile on his face. Don't interfere again. Right? He takes this seriously. He has said over and over Russia is not our friend. I believe our intelligence agencies. I think there's criticism --

(CROSSTALK)

SMITH: Well, tell that -- tell that to the media. Because watch --

GOLDSTEIN: I agree with you.

SMITH: Watch this. We don't have it. Joe Scarborough, Donny Deutsch, Moscow Mitch.

GOLDSTEIN: Yes.

SMITH: They have been absolutely teeing off on this.

GOLDSTEIN: So, the issue, listen, Sandra. The question though is, the FBI director, the Senate intelligence committee bipartisan run by Republicans said the Russians interfered, got in every one of our 50 states and will try again. The question is, has the government done everything it can do to stop that from happening. We will see. I think that's --

(CROSSTALK)

SMITH: Well, the Wall Street Journal penned an op-ed today smearing Mitch McConnell. They heavily defended his work to do just that. Democrat and the media distort his record on Russia. We dug up just about everything he's done. In 2019 of March of this year he called Russia a significant threat. He's warned Russia about election meddling.

GOLDSTEIN: Agree.

SMITH: I mean, I could go down the list here on the things that he has done. Charlie, final thoughts to you today.

HURT: Of course, everybody agrees that something should be done to tighten up the elections and they should be done, but the problem is the Democrats -- the Democrats just put out a bill that lots of crazy things like nationalize our elections and there can be a legitimate debate about whether that's the right way to deal with this or not.

SMITH: Yes.

HURT: But determining from that, that somehow Mitch McConnell is in the pocket of the Russians, come on.

SMITH: Yes.

GOLDSTEIN: Yes.

HURT: Let's elevate the discussion right here --

(CROSSTALK)

SMITH: Other things to talk about.

HURT: -- a little bit.

SMITH: Yes. All right. Richard, Charlie, thank you.

GOLDSTEIN: Thank you.

HURT: Thank you.

GOLDSTEIN: See you.

SMITH: By the way, check out Charlie this weekend. Our wise guy. Only on Fox Nation, by the way, Charlie.

Up next, how a transgender ex-Amazon employee with a bizarre agenda managed to steal the private information from 100 million Americans.

(COMMERCIAL BREAK)

SMITH: Breaking tonight, new details about the alleged hacker in the massive data breach affecting more than 100 million Capital One customers. The suspect goes by the name Erratic online and it was her online posting that led to her arrest.

Fox News chief correspondent Jonathan Hunt is monitoring this story for us. Jonathan.

JONATHAN HUNT, CHIEF CORRESPONDENT: Good evening, Sandra. Paige Thompson is the alleged hacker. She is so for being charged with a single count of computer fraud and abuse.

As you said, online, Thompson uses the alias Erratic and messages she posted on Twitter are a major part of the investigation right now.

On June 18th, for instance, she sent a message to another Twitter user that read, quote, "I basically strapped myself with a bomb vest expletive dropping Capital One dox and admitting it."

Thompson's home in Seattle was searched by the FBI Monday. She was a systems engineer at Amazon web services from 2015 to 2016. And Capital One data is hosted by Amazon's cloud service.

(BEGIN VIDEO CLIP)

SCOTT GRISSOM, VICE PRESIDENT, LEGALSHIELD: It sort of shattered the myth that the cloud is some sort of out their secure impenetrable fortress and where it's really just a series of servers and software, which is just as vulnerable to hacking.

(END VIDEO CLIP)

HUNT: The hack compromised the personal information of about 106 million people, essentially anyone who has ever had or even applied for a Capital One credit card. It is among the largest security breaches of a U.S. financial institution ever to have happened.

Capital One stock price fell around 6 percent today. In a statement, Capital One CEO said, quote, "While I am grateful the perpetrator has been caught, I am deeply sorry for what has happened. I sincerely apologize for the understandable worry this incident must be causing those affected, and I'm committed to making it right." Cyber security experts agree banks and bear the responsibility.

(BEGIN VIDEO CLIP)

DAVID KENNEDY, CYBERSECURITY CONSULTANT: The fact that we have unencrypted data sitting in cloud infrastructure for large periods of time, that's an alarming trend and that needs to change. Banks, everybody needs to do at protecting the type of information, especially our information.

(END VIDEO CLIP)

HUNT: As for those who are affected, Capital One says it will offer free credit monitoring and identity protection. Sandra.

SMITH: A lot of folks are going to want to do that in the wake of this. Jonathan Hunt, thank you.

So, have you noticed Bernie Sanders over the past few days throwing a little shade at his good friend Elizabeth Warren? So how is that going to play out tonight when they come face-to-face? We are alive at the debate next.

(BEGIN VIDEO CLIP)

SEN. ELIZABETH WARREN, D-MASS., PRESIDENTIAL CANDIDATE: You know, Bernie and I have been friends forever.

UNIDENTIFIED MALE: But are you ready for incoming fire if it happens?

WARREN: I'm always ready.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Why should someone vote, support Bernie Sanders over Elizabeth Warren?

FAIZ SHAKIR, SANDERS 2020 CAMPAIGN MANAGER: Hey, don't take this personally. I know that the media desperately wants a contrast between Bernie Sanders and Elizabeth Warren.

UNIDENTIFIED FEMALE: But they have -- everyone has to draw. Why should someone support Bernie Sanders over Elizabeth Warren?

SHAKIR: So, there's reasons to be for Bernie Sanders. It doesn't have to be against Elizabeth Warren, against anybody else.

(END VIDEO CLIP)

SMITH: Bernie Sanders' team getting set up with comparisons to Elizabeth Warren as the two progressives are set to face off in tonight's big Democratic primary debate.

Correspondent Peter Doocy is live in Detroit at the site of that debate tonight. Peter, good evening.

PETER DOOCY, CORRESPONDENT: Good evening. Elizabeth Warren likes to say she's got a plan for everything while Bernie Sanders likes to say that he's had the same progressive platform since before it was part of the Democratic mainstream.

Bernie Sanders of course was the runner-up in 2016 to Hillary Clinton in the Democratic primary race and Warren recently revealed that she would've actually accepted the role of Clinton running mate if it was offered to her in 2016, but they are both back ahead of 2020 splitting the title of progressive standard-bearer within the Democratic Party.

Warren, like Sanders, is in her 70s, but she's a newcomer to the presidential nominating process. And says, she's not going to try to make a stamp on the race by attacking Bernie Sanders because she told reporters yesterday, she and Bernie have been friends forever and she does not think the debates should be about Democrats going after other Democrats.

And if Bernie Sanders follows the same road map in this debate as he did in the last one, he may avoid opportunities to level personal attacks himself and just steer any kind of question into an answer advocating for Medicare for all.

There are going to be though eight other Democrats at lecterns tonight and one of them, Tim Ryan, told reporters today after his menu walk-through that he thinks eliminating private insurance creates a big problem. That is of course something Medicare for all would do.

Ryan is one of the more moderate candidates who was actually in danger for not qualifying for the fall debates due to low polling and fund-raising numbers. So, Bernie Sanders and Elizabeth Warren might not attack each other, but that doesn't mean that somebody from the side of the stage isn't going to take a swing at them. Back to you in New York.

SMITH: Peter Doocy, thank you. So, what happened when Senator Sanders was recently asked about his good friend Senator Elizabeth Warren? Watch this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: What is the thing you admire most about Senator Elizabeth Warren as you get ready to take her on, on the debate stage?

SEN. BERNIE SANDERS, D-VT, PRESIDENTIAL CANDIDATE: Well, Senator Warren is a friend of mine and I admire the fact that we have worked together over the years on a number of issues.

UNIDENTIFIED FEMALE: Anything specific?

SANDERS: Look, we have worked together on a number of issues and she is a very good senator.

(END VIDEO CLIP)

SMITH: Here now is Jeff Weaver, senior political advisor to Bernie Sanders' 2020 campaign. He also served as campaign manager for Sanders 2016 campaign. Great to have you on the program tonight, welcome.

JEFF WEAVER, SANDERS 2020 SENIOR POLITICAL ADVISER: Happy to be here.

SMITH: So, tell us first, what is that relationship and can they -- can they maintain that relationship when they are both vying for the same position?

WEAVER: Well, look, this is really a contest about ideas and about who can best lead this country, who can defeat Donald Trump, who hasn't, with respect to the working class of this country, been the great receiver. Who can beat Trump and who can move this country in a direction that creates an economy that works for working people in marginalized communities across this country?

Bernie Sanders has been leading the progressive movement in this country for decades. And the ideas that he has been talking about consistently are now mainstream ideas that have broad support among working people and --

(CROSSTALK)

SMITH: All right. Let's take some of those on.

WEAVER: -- in the Democratic Party and independents.

SMITH: Let's take some of that on.

WEAVER: Sure. Of course, let's do that.

SMITH: Because there is a poll out --

WEAVER: For sure.

SMITH: -- that asks which Democrat has the best policy ideas. You're telling me this is going to be about ideas. Those that responded said -- this is, by the way, people regardless of how they planned to vote in the Democratic primary for president, who they think has laid out the best policy ideas. Elizabeth Warren tops that list at 26 percent. Biden, 21. Don't know, 20.

Sanders falls down at number four there at 16 percent. Is he doing enough good enough job to put his ideas out there?

WEAVER: Well, look, we're very early in the process and what voters are doing and what they should be doing is kicking the tires on the lot of the candidates. A lot of the candidates are new to voters even if they are not new to us on the political inside front.

And so, voters are seeing a lot of candidates talking about their ideas for the first time. But as we go through the process, I think voters will appreciate the consistency of Senator Sanders support for policies that are protecting working people in his country and they will come home when we get six months from now to the first votes in Iowa.

SMITH: It's --

(CROSSTALK)

WEAVER: So, I am not -- go ahead.

SMITH: Yes. I mean, his ideas were unique four years ago. But here we are, it's 2020 and he shares -- we are looking at 2020, he shares a lot of the ideas, same policy ideas as those that will be standing on the stage with him.

He's got to figure out a way to stand apart. Going back to his relationship with Elizabeth Warren, does he plan to go after any of his Democratic opponents tonight?

WEAVER: No, it's not about going after anybody individually and that's just not the way he has ever done debates. What he does is lay out a message about what he wants to do to lead this country in a very different direction.

That raises wages, that deals with the problems in health care, college affordability and a whole host of other issues. And that's why he has a very popular figure across American politics. Whether even among many Republicans who admire Bernie Sanders.

SMITH: Let's take on that policy idea, raising the minimum wage to $15. He had a problem with that within his own campaign, Jeff.

This is a Bloomberg headline tear on that issue. Bernie Sanders union problem, his campaign's difficulties with its labor union illustrates some flaws in its labor policy. We know that the Sanders campaign recently announced that it would raise the minimum wage of its staffers after many took issue with the fact that he wasn't paying them that $15 minimum wage.

He said he would have to take away some of the hours of those staffers to be able to make that happen. Isn't that evidence that that would be a problem for our economy if businesses were forced to do that?

WEAVER: Well, I can tell you that everybody on our campaign now makes about $15 an hour and in fact, you know, we did have a union and we're very proud that we're the very first unionize campaign in the country.

(CROSSTALK)

SMITH: Were anybody's hours cut? Were anybody's hours cut as a result?

WEAVER: Nobody's hours were cut as a result.

SMITH: No one's' hours were cut?

WEAVER: Nobody. We were in discussions -- we were in discussions with the unions -- with the union that represents the workers in our campaign and as you know, as part of that process, there is a negotiation and those negotiations are concluded. People are making above $15 an hour and nobody's hours were cut.

SMITH: Were any jobs eliminated?

WEAVER: Absolutely not.

SMITH: OK. That's contrary to everything that's been reported on that issue. Were they -- did the Sanders campaign --

(CROSSTALK)

WEAVER: Well, I don't --

SMITH: Did the Sanders campaign --

WEAVER: I don't know what to say.

SMITH: -- not say that they would have to eliminate some of the hours of their staffers?

WEAVER: Well, until we have things resolved, we wanted to make sure everybody was making 15 an hour, and so we did limit people's hours so they were making $15 an hour. We've now resolved that issue and people are working the hours they are working before and they are making about $15 an hour.

SMITH: OK. I'm sorry to harp on this issue but I just read you that headline.

WEAVER: No, no. Please.

SMITH: That was a Bloomberg headline. His campaign difficulties --

(CROSSTALK)

WEAVER: I know. I can't -- you know --

SMITH: -- with its labor union illustrates flaws.

WEAVER: I can't (Inaudible) everything in the media. I really can't.

SMITH: But I'm just asking you, is that not factually correct?

WEAVER: What I can tell you is that everybody makes $15, above $15 an hour in our campaign, no one's hours have been cut, no staff have been caught. We are proceeding. We have a great ground game planned in Iowa and other states that's going to bring victory for this campaign.

SMITH: All right, what is he going to do to stand apart on that stage? What is his goal? What has he been preparing for? Final thoughts?

WEAVER: Well, look, there's a reason why people now drink classic Coke. You know, new Coke didn't cut it. Folks are going to realize that the original is the best. He's been consistent, people know they can trust him and people know when he gets in the White House, he is going to do what he said he's going to do. And that's why he is going to win.

SMITH: What -- that's an interesting analogy, could you let us know what you mean by that? New Coke? Is Elizabeth Warren new Coke?

WEAVER: All I'm telling you is that he has been the original. He's tried and true and tested. Voters trust him. There's no doubt about that and they had good reason to trust him. He's been a consistent standard bearer for policies that uplift working people in marginalized communities for decades and decades, and I think that's going to mean a lot to voters when they go in the voting booth.

SMITH: Very interesting. I hope to talk to you again and follow up with you. It's going to be a big night. A big couple of nights and we appreciate your time, Jeff. Thank you.

WEAVER: Any time.

SMITH: All right. More of “The Story” next.

(COMMERCIAL BREAK)

SMITH: Well, that is “The Story” on this Tuesday evening, July 30th, 2019. But as always, “The Story” goes on. We'll see you back here tomorrow night at 7 o'clock. And I'll see you tomorrow morning on America's Newsroom. Join Bill and me every morning nine to noon. We'll have live reaction to the debates happening tonight.

Will there be any game changers? Lawmakers on Capitol Hill will be there to react. Twenty-twenty is quickly approaching, folks.

Tonight is going to be a big night for those candidates on the stage, as well as tomorrow night. A big focus on the economy. We'll be talking a lot about that tomorrow morning. Thank you so much for joining us here on “The Story.” I'm Sandra Smith. Good night, everybody.

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