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Istanbul Terror Bombers Identified; U.S. Airports Add Security; Trump: A.G. Meeting with Bill Clinton "Terrible"; Sanders Denies He's Set to Endorse. Aired 4:30-5a ET

Aired July 01, 2016 - 04:30   ET

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

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[04:32:15] ALISON KOSIK, CNN ANCHOR: Breaking news now: investigators revealing where the Istanbul suicide bombers came from and who directed their attack.

MIGUEL MARQUEZ, CNN ANCHOR: Security increased at airports across the country as travelers head out for this Fourth of July weekend.

Welcome back to EARLY START. I'm Miguel Marquez.

KOSIK: Good morning. I'm Alison Kosik.

MARQUEZ: Good morning.

KOSIK: It's 30 minutes past the hour.

And breaking overnight, new information on the three terrorists who bombed the Istanbul airport, killing 44 people and injuring hundreds more. Investigators identifying the men as citizens of Russia, Uzbekistan and Kyrgyzstan. Officials believe the bombers entered Turkey about a month ago from the ISIS stronghold of Raqqah in Syria bring with them the suicide vests and bombs used in the attack.

The terrorists rented an apartment in an Istanbul neighborhood known for its pro-ISIS rallies.

For the very latest on the investigation, let's go now to CNN's Alexandra Field live for us in Istanbul.

Alexandra, what's the latest?

ALEXANDRA FIELD, CNN CORRESPONDENT: Hi there, Alison.

While Turkish officials have identified the nationalities of the three bombers, it's U.S. officials saying the ringleader of this attack was a well-known ISIS militant, Akhmed Chatayev, from the northern caucus region of Russia. The three men, according to sources, spent time in Raqqah, as you mentioned before, coming to Istanbul where they were in an apartment for a month prior to the attacks. That apartment has been the subject of an extensive investigation. It's where one of the bombers left his passport. That was a big break in the investigation for officials who have been combing that apartment complex, looking for more information about this plot or other possible plots. We know they've been talking to neighbors and residents in that

apartment complex, showing them pictures of the three bombers which were cameras here at Ataturk airport. They're asking for any information about these men.

One woman also telling CNN that she had smelled chemicals coming from that apartment in the course of the last month since the three men had arrived. However, sources saying the bombs were actually made outside of the country.

Counterterrorism raids have been going on since these attacks happened. The latest from Turkish officials is that 22 people have been detained for questioning, 13 people picked up here in Istanbul. Another nine people picked up for questioning out of the coastal city of Izmir -- Alison.

KOSIK: Alexandra, you know, one of the things that really strikes me, during these attacks, we're getting some of these videos of what was happening during the attack. And you see that there was security in place, yet these hardened terrorists just kept going.

FIELD: That's right. What we have heard from officials here at the airport and also Turkish officials is that this is an airport where security was the highest priority.

[04:35:01] They say that these security practices exceeded international standards.

What you did see was some of those security measures actually being enacted in the way they were intended to. There was an undercover counterterrorism officer who approached one of the gunmen when he didn't see a gun to ask for ID according to the news anxiety. There's chilling CCTV surveillance camera video of the bomber then turning and firing on this plainclothes officer who had tried to intercept.

We also know there was a security guard who spotted one of the attackers in the departure hall as he walked across the floor armed with an AK-47. That security officer fired on the attacker who then fell to the ground and detonated his suicide vest. So, there were people, security officials, security personnel at this airport who tried to intercept and who very well may be credited for saving more lives and from preventing this from becoming an even greater disaster, Alison.

KOSIK: That video so, so disturbing.

All right. CNN's Alexandra Field live from Istanbul, thanks.

MARQUEZ: Now to help us sort through all the information about the attack and attacker, we want to bring in CNN military analyst, Colonel Cedric Leighton. He's a former member of the joint chiefs of staff.

Good morning, Colonel. Thank you for getting up so early for us.

COL. CEDRIC LEIGHTON (RET), CNN MLITARY ANALYST: You bet, Miguel. What are we to draw from the fact that we believe they came from Raqqah but more importantly, they are from Russia, Kyrgyzstan and Uzbekistan. What does that tell us about this particular attack?

LEIGHTON: Well, one of the key things, Miguel, is that the mastermind, the purported mastermind, Akhmed Chatayev, is from Dagestan, the same area that the Boston bombers came from. So, what it tells us that these people are radicalized. They're radicalized first against Russia in the effort to -- Russia had to defeat the Chechen forces. A lot of the forces that were aligned with the fighting in Chechnya have migrated to -- into ISIS.

So they've left Russia. They've gone to Syria, to Iraq. The same can be said for the Uzbeks. The Uzbeks were primarily associated with al Qaeda. They have moved also into ISIS' arms.

So you've got this, really, this drawing point, this drawing card of different -- for different groups that have come from Russia. The former Soviet republics, and they have become some of the key fighting elements ISIS has and ISIS can leverage into the attacks such as the one we saw in Istanbul.

KOSIK: But recruitment from these areas has been heavy for some time now. Does it seem that counterintelligence officials were caught off guard by this one?

LEIGHTON: Alison, that's a very interesting question because it has been well known for quite some time that Russia and especially the Dagestan and Chechen region of Russia have been prime recruiting grounds. The same can be said for Uzbekistan and to some extent Kyrgyzstan as well.

So, these are well known pipelines for fighters. The problem that you have is once these people actually get into a battle zone such as northern Syria, northern Iraq, it becomes very, very hard to then figure out what their movements are.

In the case of Akhmed Chatayev, he went into Austria. He was able to achieve refugee status in Austria and use that to avoid being charged in other incident he's was allegedly involved. So, these people have histories. The histories that should be tracked by intelligence agencies across national boundaries.

And the question now becomes, was there a failure in that regard between countries such as Russia, Georgia, Austria, and others that could have potentially prevented this man from actually having such an influence in ISIS as he does today.

MARQUEZ: And if you are ISIS making decisions about where you're going to hit in Raqqah. Clearly, they had to target Turkey. Turkey had been targeted before, but not in this way. Not this open and obvious a way.

Have they just decided -- Turkey is now off our list of countries that's we're not going to go after hard, and have they made their life really worse? They're already losing lots of ground in Iraq and Syria.

LEIGHTON: That's an interesting point, Miguel. Yes, I think they have made their lives worse, because once you awaken a state like Turkey, which has extensive, a well-trained armed forces, a very good intelligence network and certainly a hardened police force as you saw, you know, in the reporting that we've done throughout the morning, there are clear indications that they are really looking to get into Turkey to declare war on Turkey and actually make a statement that Turkey is now, in essence, of the enemy camp, as far ISIS is concerned.

And because of that, ISIS has basically said that it's fair game to go after transportation hubs in Turkey, fair game to go after Turkish political officials.

[04:40:08] So that is one of the big things that has happened here in, and in essence, Turkey is being drawn into the war against ISIS, whether it wants to be or not.

MARQUEZ: Colonel Cedric Leighton, thank you very much.

KOSIK: Thanks so much.

LEIGHTON: You bet, Miguel. You bet, Alison.

MARQUEZ: Happening now: heightened security as millions prepare to travel for the Fourth of July holiday weekend in the wake of the Istanbul airport attacks. Surveillance screening patrols all heightened in soft target areas outside secure TSA checkpoints.

For more, let's bring in CNN's Rene Marsh at Washington's Reagan National Airport.

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RENE MARSH, CNN AVIATION CORRESPONDENT: Well, Alison and Miguel, it's projected some 43 million people will travel this holiday. That's the most on record for the Fourth of July weekend. The majority of those people will be driving but some 3 million will be flying. And after the attack in Istanbul, the concern is about the soft areas, the soft target areas in airports across the country.

In many airports, this is the situation. The TSA checkpoint is the first line of defense. It leaves that other section of airport, the perimeter, that part is very vulnerable. We heard from the Department of Homeland Security Secretary Jeh Johnson.

He said that passengers will notice an increase of police officers in the soft target areas of airports across the country. That includes the TSA's Viper Team assigned to do random bag checks, random passenger checks to prevent a terrorist attack. However, no changes have been made to the screening process for passengers.

Back to you, guys.

(END VIDEOTAPE) KOSIK: All right. Our thanks to Rene Marsh for that.

Joe Biden says Bernie Sanders is finally ready to endorse Hillary Clinton for president, but is he really? That's next.

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[04:46:03] KOSIK: Welcome back.

A new storm brewing for the Clinton presidential campaign over a meeting this week between Bill Clinton and Attorney General Loretta Lynch. Lynch says the two met by chance when she and Bill Clinton found themselves on the same airport tarmac in Phoenix, Arizona.

Republicans say the meeting undermines confidence in the FBI investigation into Hillary Clinton's e-mail, but, Lynch, the FBI's boss, as head of the Justice Department, says she and Bill Clinton only had a social conversation about grandchildren and golf and did not talk about his wife's email.

The White House defending the integrity of the federal investigation as Donald Trump weighs in calling the meeting terrible.

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REPORTER: Do you think that was an appropriate conversation?

DONALD TRUMP (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: Well, it was shocking. It was shocking to me, but it was shocking to everybody that's saw it take place. I was so surprised to see that. It's the system. I guess it's the system. But it was very disappointing.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Both the president and the attorney general understand how important it is for the Department of Justice to conduct investigations that are free of political interference. She's made clear that that's the expectation that she has for the way that this investigation should be conducted. The president has made clear that that certainly is consistent with h& expectation about how this should be handled.

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MARQUEZ: New confirmation New Jersey Governor Chris Christie and former House Speaker Newt Gingrich among the finalists to be Donald Trump's running mate. Sources confirming to CNN that Christie, a former Trump rival, now among his strongest defenders is being officially vetted. And a Trump adviser says Gingrich is being, quote, "seriously considered".

This as Trump prepares to speak this afternoon in Denver at the Western Conservative Summit. Sarah Palin, Carly Fiorina and Hugh Hewitt also set to be there.

KOSIK: Breaking overnight: Bernie Sanders denying reports he's ready to officially endorse Hillary Clinton for president. Vice President Biden telling NPR's Rachel Martin in an interview set to air this weekend, I've talked to Bernie. Bernie is going to endorse her. This is going to work out.

The Democrats are coalescing even before this occurs. But Sanders says, not so fast. That's just not the case. Not yet, anyway.

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SEN. BERNIE SANDERS (D), PRESIDENTIAL CANDIDATE: We are working. I mean, as we speak, we are working with the Clinton campaign trying to be able to come forward and say to my supporters out there, you know what? Here's the progress we have made. I hear what Secretary Clinton is saying on this issue and that issue. That means a whole lot to you.

So, I hope we can reach that goal. We are not there at this moment.

(END VIDEO CLIP)

KOSIK: And Sanders and Clinton are taking the day off from any scheduled campaign events today.

MARQUEZ: The U.S. military lifting the ban on transgender people serving openly in the armed forces. Defense Secretary Ash Carter says new regulations ensure no one can be discharged or denied re- enlistment based on gender identity. The policy will allow members to transition gender while serving and will set standards for medical care will be phased in over a year. Meantime, Republican critics are charging the White House's prioritizing politics over policy.

KOSIK: President Obama this morning getting a briefing from members of his public health team about the ongoing response to the Zika virus. The move comes after Congress this week failed to pass a Zika funding bill. Democrats said the Republican-sponsored bill was filled with a poison pill provision that would defund Obamacare and Planned Parenthood.

MARQUEZ: House Republicans moving forward next week on an anti- terrorism package to block people on the terror watch list from buying guns. House Speaker Paul Ryan outlined the legislation Thursday. Ryan said it will also include measures to disrupt radicalization and recruitment. The move made in an effort to preempt House Democrats from holding another floor protest on gun control.

[04:50:03] The government now probing Tesla's auto pilot feature following a fatal crash in Florida. Authorities say Joshua David Brown's 2015 Model S Tesla slammed into the side of a tractor trailer crossing the road to make a turn. The top of the vehicle and its windshield completely crushed. Tesla officials say this type of crash is extremely rare, noting the auto pilot feature did not apply the brake because it didn't pick up the white side of the tractor trailer against the bright sky. Crazy.

KOSIK: Federal regulators are warning more than 300,000 Honda and Acura owners to immediately stop driving their cars until their Takata air bags are replaced. The National Highway Traffic Safety Administration says new tests show the air bags at issue have a 50 percent chance of exploding when deployed in an accident, compared to a 1 percent chance for other air bags. They warn that could kill or injure drivers and passenger cars.

Cars n humid regions of the country like cars in Texas and Florida and the Gulf Coast may be at an even higher risk.

So here are the models affected. You can find this list at a couple of places, CNN Money and on the National Highway Traffic Safety Administration website. And safety regulators are saying that Honda has the replacement parts to fix all of the 300,000 cars covered by this alert. Almost 70 million vehicles with Takata air bags are being recalled. They airbag explosion have caused ten deaths in the U.S.

All right. The stock market is riding a nice Brexit bounce following huge losses right after the vote. But even if you don't own stocks, you might benefit from the volatility. I'm going to tell you why when we get an early start on your money, next.

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[04:55:59] MARQUEZ: Happening now -- new twist in the Brexit saga this morning as the race to succeed David Cameron takes a surprising turn. Former London Mayor Boris Johnson considered the favorite after heading the successful leave campaign dropped an absolute bombshell on Thursday, announcing he is not tossing his hat into the ring. That sets up a face-off between Britain's home secretary and its justice secretary and their differing views on the country's withdrawal from the European Union.

We're going to bring in CNN's Isa Soares in London with the latest.

Can you even keep up with the latest?

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: I'm really -- it is quite hard, Miguel. Very good morning to you.

The last 24 hours, I should say, the last two weeks, in fact, have been something none of us could actually believe, full of high drama and intrigue. A bit similar to a Shakespearean play or what some are calling now game of thrones, the real game of thrones. What we've seen in the last 24 hours in particular have been shocking.

Like you said, we have heard that Michael Gove, who was, if you remember, he was the right-hand man to Boris Johnson, the former mayor of London, then were the ones really leading the exit, the Brexit campaign as it's known. All along, Michael Gove has said, "I'm not equipped to be prime minister. I do not want to be prime minister." Yet yesterday, the major shock to everyone, including us, he said he did want to be prime minister and he wanted to put his hat in the ring. I'm going to tell you why.

He says, "Events since last Thursday heavily with me but I've come reluctantly to the conclusion that Boris cannot provide the leadership. I'll build the team for the task ahead."

Boris clearly not seeing that one coming. His friend pretty much betraying him. Many people came out expecting him to put the hat in the ring and said that he will not be putting -- really going for the role of prime minister. He didn't give a reason for it. He basically said he just didn't want to go for it given the circumstances.

So you start to get an idea of how deeply divided this country will be and how bitter it has been. Hence why we're getting headlines like that this, Miguel, and that of midnight treachery. This is how one paper called it. This other one calls it "Brexecuted." You'll see it here. Brexecuted. A Tory bloodbath, so a bloodbath from the Conservative Party. And finally this one, a "Tory day of Treachery."

One person that gained from all of this, you were, mentioning, is another candidate throwing a hat in the ring. That's Theresa May. So much division between Gove and Johnson, what we have is May really coming out strong and getting a lot of support from many of the Tory MPs, Miguel.

MARQUEZ: Oh, it just gets more and more interesting over there. And the left having its own issues.

Thank you very much for getting us through that. Really appreciate it.

KOSIK: So many headlines.

MARQUEZ: My goodness.

KOSIK: Let's get an early start on Dow futures are slightly lower as investors start the month of July and the third quarter. Investors seem to be taking a bit of a breather after a huge three-day winning streak of almost 800 points of a gain for the Dow. Stock markets in Europe are rising. Shares in Asia finishing mostly higher overnight. We are seeing oil prices slipping.

If you missed out on the big stock market gains, there's still a way to cash in. Mortgage rates hit a three-year low this week. The average on a 30-year fix is at 3.48 percent. That's nationwide. A year ago it was 4 percent.

The 15-year fixed stands at 78 percent. That's a popular refinancing tool. Everybody wants to know what's behind the drop in mortgage rates? Well, investors have been rushing into the safety of treasury bonds, especially the ten-year. That causes the yield to fall and mortgage rates are tied to those yield. Even better news for home buyers, the Brexit vote took a Fed rate hike this summer off the table so rates should stay low for the next few months at the very least. It's once again part of the reason why you're seeing this rally happen.