[Vause:] Welcome back everybody. You're watching CNN NEWSROOM, live from Los Angeles. I'm John Vause with the headlines this hour. Turkey's economic downtown is having a ripple effect on global markets. Stocks in the U.S., Asia and Europe were all down on Monday as the Turkish currency, the Lira continued to tumble. President Recep Tayyip Erdogan is blaming so-called economic terrorists on social media. Accusing them of trying to harm Turkey by spreading false reports. Still, no public comment from the U.S. president after last week's Saudi air strike in Yemen which killed 40 school children, instead of three-star general will press Riyadh for a transparent investigation. A mass funeral was held Monday for dozens of the victims that the Saudi's say were killed in a legitimate military operation and denies targeting civilians. And the president of the United States visited a New York military base on Monday, signing into law defense bill named after the ailing Senator John McCain. Trump thanked multiple members of Congress except one, John McCain, as well no other two do not like each other despite both being from the same Republican Party. Senator McCain is suffering from a rare brain cancer.
[John Vause, Cnn Anchor:] And the President of the United States visited a New York military base on Monday signing into law a defense bill named after the ailing Senator John McCain. Trump thanked multiple members of Congress except one John McCain. It is well known the two do not like each other despite both being from the same Republican Party. Senator McCain is suffering from a rare brain cancer. Well, there will also be no thanks from Donald Trump also for his former aide, Omarosa Manigault-Newman. Like many others she's written a book about her experience working in and getting fired from the White House. But unlike many others in the past, Omarosa has some secret recordings of the President and his chief of staff to name a few. Kaitlan Collins has details.
[Kaitlan Collins, Cnn White House Reporter:] President Trump addressing soldiers at Fort Drum.
[Donald Trump, President Of The United States:] I'm here today to sign our new defense bill into law.
[Collins:] As former White House staffer Omarosa Manigault-Newman escalates her war with the administration revealing she recorded her conversations with the President.
[Donald Trump, President Of The United States:] Omarosa what's going on. I just saw in the news that you're thinking about leaving. What happened?
[Omarosa Manigault-newman, Former White House Staffer:] General Kelly General Kelly came to me and said that you guys wanted me to leave.
[Trump:] No. Nobody even told me about it.
[Collins:] Omarosa breaching major security protocols secretly taping her firing by John Kelly in the White House Situation Room. One of the most secure places in Washington with no devices allowed.
[General John Kelly, White House Chief Of Staff:] I think it is important to understand that if we make this a friendly departure, we can look all be you know, you can look at your time here in the White House as a year of service to the nation. And then you can go on without any type of difficulty in the future relative to your reputation.
[Collins:] Trump tweeting today that despite intense pressure to fire Omarosa, he kept her around because "she only said great things about me" adding "Wacky Omarosa skipped work, missed meetings and was a vicious colleague," despite promising this on the campaign trail.
[Trump:] We're going to get the best people in the world.
[Collins:] Asked about Omarosa over the weekend Trump said this.
[Trump:] Low life. She's a low life.
[Collins:] Omarosa had no defined role in the West Wing but raked in nearly $200,000 tax-payer funded dollars and carried the title assistant to the President. She's also claiming the Trump 2020 campaign offered her a $15,000 a month position if she agreed to keep silent. Something she said she refused to do. Trump also admitting for the first time she signed an NDA, writing on Twitter, "Wacky Omarosa already has a fully-signed nondisclosure agreement." When CNN reported that senior staff signed NDAs earlier this year, the White House denied it. But Kellyanne Conway said this yesterday.
[Kellyanne Conway, Counselor To The President:] We have confidentiality agreements in the West Wing absolutely we do. And why wouldn't we
[Collins:] One White House official telling CNN they don't consider Omarosa's recordings to be a national security threat but noting, they're worried she wasn't the only staffer recording conversations. All this, as Omarosa threatened more trouble for the White House.
[Unidentified Male:] Do you have more recordings?
[Newman:] Oh, absolutely.
[Unidentified Male:] Are you planning on releasing them?
[Newman:] I don't know. I'm going to watch to see. They've been threatening legal action. They're trying to figure out how to stop me. I'm expecting that they're going to retaliate and so I'm just going to stand back and wait.
[Collins:] Now Omarosa is denying that she signed the White House version of a nondisclosure agreement so it is unclear which nondisclosure agreement that the President was referring to in his tweet. What we do know that Omarosa has done is create a sense of paranoia here in the West Wing. People who long suspected that she was recording their conversations, and now those conversations seem to be coming to light and Omarosa is only promising that there could more. Kaitlan Collins, CNN the White House.
[Vause:] Well, much of the focus on this story has been about the politics and the fallout for the President. There's potentially a much bigger issue here for the White House and what appears to be a gob-smacking security breach which in any other administration would be a major controversy in and of itself. For more, we're joined now by CNN analyst Juliette Khayyem former assistant secretary in the Department of Homeland Security during the Obama administration. Juliette good to see you.
[Juliette Khayyem, Cnn National Security Analyst:] Good to see you.
[Vause:] Ok. Let's start this out with, you know, by saying we're assuming that all of this happened the way Manigault-Newman said it did. You know ok, so leave it at that. Here's the statement which was issued by the White House press secretary Sarah Sanders. "The very idea a staff member would sneak a recording device into the White House Situation Room shows a blatant disregard for our national security and then to brag about it on national television further proves a lack of character and integrity of this disgruntled former White House employee." It's a rare day but Sanders is actually 100 percent right in what she says but that statement doesn't deal with the other half of it which is how this actually happened in the first place.
[F1:] That's exactly right. I mean look, Omarosa took advantage of the blatant disregard for security procedures that were established by the President himself. I mean we've seen throughout the administration whether it is the use of his unsecure cell phone or the lack of permanent security clearances for some of the top staff or the way he is very loose with the fact he brings, you know, Russians into the Oval Office to discuss, you know, covert operations. The what we call in my world the sort of, you know, security culture begins at the top. And we haven't seen with it this White House. So Omarosa's just basically steps into that vacuum and takes advantage of a White House that has already sort of essentially let its guard down.
[Vause:] And just to back up a little. How much can you tell us about the specific security arrangements in place in the situation which is the White House one, not Wolf Blitzer's?
[F1:] Right.
[Vause:] You know, this was meant to be the most secure part of the West Wing which presumably supposedly makes it one of the most secure places in the world, or at least in theory.
[F1:] Right. That'right. So the Situation Room is what is called a SCIF, it's a secure, compartmentalized room which essentially means that you do not bring anything into the room that has the capacity to be compromised because the room itself is secure. So you just basically don't bring in cell phones, beepers or whatever else. So when you are invited so I was in an agency so when you're invited to the Situation Room, you put your phone into essentially just a cubby. You take a number and you walk into the Situation Room just with paper and pen. That's essentially all you should really have to discuss whatever the security or safety issue is of the day. I will tell you though that that whole process is sort of self- executing. In other works, you know, to work for the President of the United States or for a cabinet secretary, to go through the security clearance process, assumes a level of sort of preservation for classified information for the secrets of your country. So it's not like you get frisked on your way in. I mean there's just an assumption that people will behave with the country's interests in mind. We have not seen that with this White House. And so essentially, you know, she's in the Situation Room. She's bringing in a phone that can be compromised on the way out. We have no idea the security features on this phone. Does it even have dual authentication? Any of those issues and she brings it in, we assume does a tape-recording from there.
[Vause:] Ok. So a lot of people are, you know, obviously questioning Omarosa's credibility. But when you put it in context with everything else that we know about the President and others who are working at the White House and within that security culture that this administration has which doesn't seem to place a high importance on security, that all comes with some pretty obviously consequences.
[F1:] That's right. I mean there's sort of two takeaways from this that I think is sort of bigger than, you know, Omarosa and Trump and them fighting, you know, over Twitter. I think one is that it would be inconceivable that secrets have not been disclosed at this stage. The leaking and the tape recordings and the phones in the wrong places and the briefing that aren't occurring in secure rooms all of it. It would be hard to believe that this White House has not been sort of negligent in how it is retaining our secrets. And then the bad side of that so that's just negligence the bad of that is, of course, the rest of the world is watching. This isn't a fight between a former staffer and the President. Those vulnerabilities are noted by our enemies as well as our allies about what might be compromised, ways that they could take advantage of that. And certainly the drama that surrounds this White House in terms of the personnel each of those people is potentially an access point for foreign entity, for even a even an ally who might want to get more information about Trump or the inner workings of the national security apparatus. And so, you know, it is not just us watching. It is the Chinese and the Russians and even, you know, the British or whoever else. And that's a big vulnerability that's just being played out on television at this stage.
[Vause:] Yes.
[F1:] I know. I know.
[Vause:] Juliette thanks.
[F1:] What can I tell you?
[Vause:] Yes. Good to see you. Thank you.
[F1:] Good to see you. I have to say one thing. When Omarosa and your national security expert are combined, it's a bad day.
[Vause:] It's a weird day. And there's lots of it.
[F1:] It's a weird day. I'll see you soon.
[Vause:] Cheers. Next on NEWSROOM L.A., medically-kidnapped after the world-renowned Mayo Clinic saved her life, an 18-year-old girl says she was then held against her will.