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Early Start with John Berman and Zoraida Sambolin

Candidates Flock To Iowa State Fair; Jeb Bush Defends Invasion Of Iraq; Biden Using Vacation To Weigh 2016 Run; Kerry To Reopen U.S. Embassy In Havana; China Explosions: 50 Confirmed Dead; Does ISIS Have Chemical Weapons?. Aired 5:30-6a ET

Aired August 14, 2015 - 05:30   ET

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


CHRISTINE ROMANS, CNN ANCHOR: Let's start with politics, shall we? This morning, presidential candidates descend on Des Moines for the Iowa State Fair. It's an all but required early stop on the campaign trail.

It's a chance for face time for some of the 1 million Iowans who attend the fair and who may then go on to select the state's presidential nominees at the Iowa caucuses next February. CNN's Jeff Zeleny is there. He's got the latest.

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Hi, Christine. Hello from the Iowa State Fair. For the next week and a half or so, it is pretty much ground zero in the 2016 presidential campaign. Jeb Bush is coming here today to give a speech and to meet one-on-one with all these voters here.

This is a key test for the presidential candidates, one of those rites of passage throughout the summer. For Republican candidates and Democratic candidates alike come and press the flesh, if you will. They answer questions and give speeches.

Sometimes we've seen very defining moments over the years when voters challenge candidates on specific things. Christine, we are looking forward toward a big weekend here at the Iowa State Fair.

Donald Trump and Hillary Clinton will both be on the same grounds in the same proximity on Saturday. Donald Trump may even bring his famous helicopter in. We will see about that.

Christine, this really gives voters a chance to take a measure of candidates to see how they interact with people and what their likability test is. If the old adage is, who do you want to have a beer with is a test for a presidential candidate that is what you can do on the fairgrounds.

So for the next week and a half, every single candidate, more than 17 on both sides will be coming here to give speeches and meet voters six months before the Iowa caucuses. Over the next couple of days, this is a pretty defining time.

Sure wish you were here. We would have a good corn dog and pork chop on a stick -- Christine.

ROMANS: Not a corndog. I'll have the pork chop on a stick. How many time will Jeff Zeleny be Iowa between now and February. Thanks.

Jeb Bush hits the Iowa State Fair in a few hours. Yesterday, on the first day of his swing through the state, he defended his brother's decision to invade Iraq in 2003.

Jeb Bush said the Obama administration inherited a fragile, but secure Iraq from George W. Bush in 2009, and then allowed ISIS to emerge.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Had we not invaded Iraq in the first place, we would not be dealing with the ISIS problem?

JEB BUSH (R), PRESIDENTIAL CANDIDATE: Look, who knows. This is such a complicated hypothetical, who knows? I can't answer that. I'll tell you that taking out Saddam Hussein turned out to be a good deal.

(END VIDEO CLIP)

ROMANS: The candidate polling second in Iowa suddenly on the defensive. Retired neurosurgeon, Ben Carson, is trying to square his past use of tissue from aborted fetuses for medical research back in the 1990s, trying to square that with his current call for defunding Planned Parenthood.

(BEGIN VIDEO CLIP)

DR. BEN CARSON (R), PRESIDENTIAL CANDIDATE: To not use the tissue that is in the tissue bank regardless where it comes from would be foolish. That is a different thing from killing babies and manipulating them, taking their tissues and selling them. To try to equate those two things is absolutely ridiculous.

(END VIDEO CLIP)

ROMANS: Carly Fiorina barnstorming Iowa from her new perch as a top tier candidate. The former Hewlett-Packard CEO is highlighting her strength at a town hall as someone who can shake up Washington and get things done.

(BEGIN VIDEO CLIP)

CARLY FIORINA (R), PRESIDENTIAL CANDIDATE: We have to challenge the status quo of Washington, something that the political class really has not been willing to do for a long time. That is why you see people say I don't care if you have been in politics all your life. What I care about is do you understand how to translate a good speech into real results?

(END VIDEO CLIP)

ROMANS: Fiorina setting out a controversial position at the same town hall. She said parents should not be forced to get their children vaccinated. She later added that schools districts, though, can still bar unvaccinated children from attending. On the Democratic side, Hillary Clinton getting a boost from an Iowa political legend this morning, former Senator Tom Harkin giving Clinton his highly coveted endorsement.

Now a major Democratic power broker in the state, Harkin writes at a "Des Moines Register" op-ed that Clinton shares his values on social and economic justice. Clinton campaigning in Iowa today and pushing her plans for making higher education more affordable.

She's at a town hall in Dubuque then tonight she crosses paths with three other Democratic contenders, Bernie Sanders, Martin O'Malley, and Lincoln Chafee at a fundraiser and clearly called Iowa Democratic Party Wingding.

Democratic contenders could soon have a formidable rival in that race, Vice President Joe Biden reportedly spending his South Carolina beach vacation consulting with family and supporters and weighing the idea of launching a campaign.

CNN White House correspondent, Michelle Kosinski, has that story.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, Christine, this has been one of the big mysteries of the race. Is Joe Biden running or not? Even people close to him when you ask them, they have been saying they don't know because he himself is still wrestling with that decision.

[05:35:06] Now we know that while he has been on vacation this week with his wife on this tiny island off the coast of South Carolina, he has been doing some reaching out to people close to him on that possibility. Other people are starting to weigh in now, too.

Hillary Clinton said she will respect whatever decision he makes although some of her supporters have publicly questioned whether it might not be too late in the game or whether it is the best decision for him or not.

Martin O'Malley said he would welcome Biden's voice in the race. Donald Trump wasted no time in treating Biden as an opponent by slamming him.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I think I would match up great. I'm a job producer. I have a great record. I have not been involved in plagiarism. I think I would match up very well against Biden.

(END VIDEO CLIP)

KOSINSKI: He's referring to some issues Biden had back in law school. You look at new numbers. The CNN/ORC poll, it puts Biden at number three of likely Iowa caucus goers with 12 percent of the support. He hasn't announced yet.

Those close to him have said that they feel sorry for him because he needs to make this decision during a time he is still mourning his son. His son urged him to take this chance and run with it. It looks like that decision now could be coming quite soon -- Christine.

ROMANS: All right, Michelle Kosinski, thank you for that.

In just about six hours, history and the American flag will unfold in Havana. Secretary of State John Kerry is heading to the island nation to raise the stars and stripes over the newly reopened U.S. Embassy in Havana.

But as CNN's Jake Tapper reports once the cheering and ceremonies end, a lot of difficult work lies ahead.

JAKE TAPPER, CNN HOST, "THE LEAD": Buenos dias from Havana, Cuba, Christine. It is a hugely momentous day in Cuban and American history. Later today, Secretary of State John Kerry will come down and he will raise the American flag at the U.S. Embassy here.

The first time that flag has been flown here since January of 1961 when President Dwight Eisenhower ended diplomatic relations between the two countries.

In fact the three Marines who lowered that flag will be here today for that ceremony. It's a day full of excitement and history. It's also a day with some criticism, some dissidents here in the country expressing real disappointment to us.

Talking about how the Obama administration gave up too much and didn't demand enough in terms of human rights and other concessions regarding freedom from the Cuban government.

But no matter what you think about what's going to happen today, it is a very significant day. We will bring it all to you live later on -- Christine.

ROMANS: Yes, we just watched the crews putting up the U.S. Embassy sign. We took some tape of it for you. This happened a couple minutes ago. Embassy of the United States of America, there they are putting the words back on the building for the first time in 50 years. It will be a really historic morning today. Jake will bring it to us. Thanks.

To Northern China where hundreds of chemical specialists are now at the site of a devastating explosion that left a port city in ruins, more than 1,000 firefighters are still dealing with hot spots.

The executives of the hazardous chemicals company that owns that warehouse where it all started, those executives are now in custody. Will Ripley has been in Tianjin since the story broke. He joins us with the latest.

It's almost hard to describe the scope of the devastation there. You have been talking to people who fled their homes and have not been able to go back. They fled their homes in their pajamas.

WILL RIPLEY, CNN CORRESPONDENT: That's right, Christine. That's why these resettlement centers have proved to be so vital for thousands of people displaced. It's incredible to see when a community comes together after a disaster and it happens all over world, in the United States and China as well.

We've seen volunteers coming up with bags of blankets and food and clothing and water to give to all of the people who were displaced in addition to the police and security personnel and military.

There are also a lot of volunteers who live in the city and their homes were not damaged. But they want to help the 90,000 people in the immediate epicenter who in many cases could be homeless for some time and now living in tents. You talked about how the owners of the factory have been detained.

The Chinese government is promising harsh penalties if they determine that there was criminal wrongdoing in the way that these chemicals were handled at this facility.

This is a shipping port here in Tianjin. The chemicals were brought in and stored in this factory for up to 40 days and then shipped out. There have been concerns about unsafe handling conditions for all of these different volatile compounds.

[05:40:04] That concern continues right now because of that fact that they still don't know exactly what was in there. They don't know the extent of the ground water contamination although the sea water is testing OK right now.

There is rain in the forecast. They know for a fact that some of the compounds being stored in there, if they have contact with the rain, that could send a new cloud of pollutants back in the air and it would not be projected out like the violent explosions.

But it poses a threat to people especially even in a re-settlement center like this, which is just a very short distance from ground zero. It is good to see people getting help they need here and we can't forget the humanitarian toll this has taken.

There are families here. People ran out of their homes without shoes and clothes. Now they have something to eat and roof over their head. They are trying to keep their lives together as best as they can under very absurd circumstances.

ROMANS: Yes, very tough indeed. Thanks for that, Will Ripley.

Breaking news this morning, Greek lawmakers have just approved the country's third bailout after a marathon night debate. There are of course still some hurdles. Alison Kosik, the Greece still has hurdles.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: The ball is sitting in the court of Eurozone finance ministers because they still need to give a green light for the loan. They'll meet later today. Greece's Prime Minister, Alexis Tsipras, urged parliament to side off on the deal calling it a necessary choice for the nation.

The $95 billion agreement will help Greece avoid bankruptcy and secure its future in the EU and it includes tax increases and spending cuts.

All right, let's get a quick check on the markets, U.S. stock futures are down just a bit right now. European shares are giving back some earlier gaining.

Breaking news this hour, economic growth in the Eurozone slowed a bit last quarter to 0.3 percent. That's actually after the region had shown some momentum.

We are also keeping an eye on oil prices moving down right now. The price of crude at a six-year low on growth concerns and a booming supply -- look at that drop, dropping like a rock, it really is stunning.

ROMANS: It's good for drivers. Eurozone number, breaking this morning, interesting, it is still positive. We had negative numbers --

KOSIK: Glass half full.

ROMANS: All right, thanks, Alison. Troubling new information in the war on ISIS, the terrorists believed to be using a new weapon in the deadly attacks. Details next.

(COMMERCIAL BREAK)

[05:45:58]

ROMANS: A troubling development in the war against ISIS. Pentagon officials believe the terrorist group is using chemical weapons against Kurdish fighters in Iraq. We get more from CNN's chief national security correspondent, Jim Sciutto.

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Christine, the U.S. believes it has credible information that ISIS used this chemical agent, mustard gas, extremely powerful, dates back to World War I, outlawed in fact after World War I.

Why do they find it credible? Basically the symptoms of these Kurdish soldiers who were attacked with it in Northern Iraq both breathing difficulty after the attack, but also signs of blistering on their skin.

Mustard gas is a blistering agent. Two explanations for how ISIS could have gotten this. Either they overran old Iraqi or Syrian weapons caches or U.S. officials say it's also possible that they figured out how to make this themselves and weaponize it.

Both of those explanations frankly are alarming. It would be a real concern. U.S. officials say, listen, in terms of the battle field calculus, this is not a major game changer, but these are weapons of fear, much like terrorism and beheadings that ISIS has been carrying out.

That's a factor on the battlefield, but also this, you've heard some U.S. officials mention the possibility of putting U.S. soldiers closer to the frontline either as spotters for airstrikes or possibly forward deployed advisers.

This, of course, would then have to be added into the dangers that they may face on the battlefield, certainly part of that calculation. It is regardless of the explanation and still they have to confirm that this was mustard gas. If it is confirmed, this is a very alarming development -- Christine.

ROMANS: It certainly is. Jim Sciutto, thank you for that.

Danger in the sky, pilots reporting more near collision with drones. We have new information for you after the break.

(COMMERCIAL BREAK)

[05:51:26]

ROMANS: The FAA is growing increasingly concerned about the number of drone sightings being reported by pilots. Hundreds of these close encounters so far this year. Officials fearing it is only a matter of time before disaster strikes. We get more from CNN aviation correspondent, Rene Marsh.

RENE MARSH, CNN AVIATION AND GOVERNMENT REGULATION CORRESPONDENT: Well, Christine, they are in the sky by the hundreds flying dangerously close to passenger planes. The number of close calls reported have more than doubled and now the FAA and pilots are expressing concern.

So far this year, the FAA has received more than 650 drone sighting reports from pilots compared to 238 in all 2014. Despite FAA rules that forbid flying above 400 feet near commercial planes or near an airport, hundreds and hundreds of drone operators have gone rogue.

Now part of the problem is anyone can buy a drone online or at the mall for a couple hundred dollars. They don't need any training or aviation experience. But drone lobbyists blame the FAA for the spike in close calls saying that the agency needs to be more aggressive and going after these rogue operators.

We should point out although the FAA has said it could be catastrophic if one of these drone strikes an airplane engine or even a windshield of a cockpit, no testing has been done to see how much damage a drone could actually do -- Christine.

ROMANS: All right, Rene Marsh, thank you for that, Rene.

It's 53 minutes past the hour. Early birds, overachievers, do you want to read like a president? A look at President Obama's beach reads for the summer next.

(COMMERCIAL BREAK)

ROMANS: Let's get an EARLY START on your money. European stocks lower right now. Breaking news this hour, growth in the Eurozone is weaker last quarter. U.S. stock futures down too. Greek lawmakers have just approved the country's third bailout after a marathon night of debate. Alison Kosik joins me now. Alison, what is standing in the way of Greece and all these emergency funds now?

KOSIK: Well, at this point, the Eurozone finance ministers still need to give a green light for the loan. They are going to be meeting later today about it. The $95 billion agreement will help Greece avoid bankruptcy and secure its future in the E.U. It includes tax increases and spending cuts.

Also happening right now, oil prices fall. The price of crude has actually dropped to a new six-year low. The drop reflects the surplus of American oil and devaluation of Chinese Yuan plus reports of higher Iranian oil production.

How do you plan on getting to work? If you are like most Americans, you are driving a car alone. That's according to new data by the Census Bureau. More than three quarters of Americans are driving to work by themselves listening to music hopefully. Less than 10 percent car pool and actually that number has been on the decline since 1980, and about 3 percent of people actually walk to work. Good for them.

Do you want to read like a president? President Obama is on vacation at Martha's Vineyard. No vacation is complete without light reading. What's on his list, six books including Pulitzer Prize winners "All The Light We Cannot See" and "The Sixth Extinction" and also a George Washington biography and a memoire focused on race in America. Six books in two week, do you think he'll read them all?

ROMANS: That is not light reading. None of that is light reading.

KOSIK: He calls it light reading.

ROMANS: I don't know.

KOSIK: If he can surface enough to hang with his family?

ROMANS: I don't know. All right, thanks, Alison Kosik. Nice to see you. Have a nice weekend, Alison.

The race for the president moves to the Iowa State Fair. "NEW DAY" starts now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Big weekend here at the Iowa State Fair.

UNIDENTIFIED MALE: Not a doubt in my mind that people are looking for a new leader.

UNIDENTIFIED FEMALE: We have to challenge the status quo of Washington.

UNIDENTIFIED FEMALE: Is Joe Biden running?

UNIDENTIFIED MALE: He has that authenticity that is really being craved.

UNIDENTIFIED MALE: He is the one that can bring the country together and move us forward.

UNIDENTIFIED MALE: I think I would match up very well against Biden.

ANDERSON COOPER, CNN HOST, "AC360": Is ISIS using chemical weapons?

SCIUTTO: It's a weapon of fear. It has an enormous effect on the battlefield.

UNIDENTIFIED FEMALE: The terror group uses sex slavery as a recruiting tool. The militant justified its actions.

UNIDENTIFIED FEMALE: A horrifying scene for parents and onlookers alike.

UNIDENTIFIED FEMALE: One kid was screaming. Another kid was bleeding from his mouth.

UNIDENTIFIED FEMALE: They were just like shocked.

(END VIDEOTAPE)

CHRIS CUOMO, CNN ANCHOR: Good morning to you. Welcome to your NEW DAY. It is Friday, August 14th, 6:00 in the east.

Battle lines are being drawn. The Biden talk is getting real enough that people are attacking him. People named Trump. Ben Carson is making the case for banning abortion and admitting he used fetal tissue for research. Heavy duty stuff on what is supposed to be a playful weekend.

MICHAELA PEREIRA, CNN ANCHOR: Frontrunners Donald Trump and Hillary Clinton are slated to stop by Saturday.