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Early Start with John Berman and Zoraida Sambolin

GOP Leaders Frustrated with Donald Trump; Clinton Attacks Trump's Businesses; London Knife Attack Kills Woman and Wounds 5 Others; Countdown to Rio: One Day to Go. Aired 4-4:30a ET

Aired August 04, 2016 - 04:00   ET

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


[04:00:13] GEORGE HOWELL, CNN ANCHOR: The GOP reaching a new level of panic over Donald Trump, upset their party's nominee tends to get off message far too often. Trump's reaction to the criticism and the new advice he's been given.

CHRISTINE ROMANS, CNN ANCHOR: Hillary Clinton campaigning through key swing states, blasting Donald Trump over his foreign-made products.

HOWELL: A deadly attack in London. A man with a knife randomly stabbing six people at a popular shopping district. Was it terrorism? We have all the details for you that we are learning. A lot to talk about this morning.

Good morning. Welcome to EARLY START. I'm George Howell.

ROMANS: Nice to see you, George.

I'm Christine Romans. It's Thursday, August 4. It is 4:00 a.m. exactly in the East.

Let's begin with politics. Republican leaders said to be frustrated, upset, disappointed with Donald Trump, their own candidate for president. Inside the Trump campaign, staffers baffled over how to keep the candidate on message and out of trouble. Sources revealing that the campaign has reached out to Chris Christie, Newt Gingrich and other Donald Trump advisors for help in keeping their nominee on message.

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), FORMER HOUSE SPEAKER: What's truly frustrating here is you have a very talented businessman who might actually become a historic figure, but he has to -- every morning, he has to get awake and say, the only two people I'm fighting with are Barack Obama and Hillary Clinton. And you have to take on Obama because clearly Hillary would be the third term. You got to win the argument about whether or not this has been good.

But other than those two people, every time he talks about anyone else, it is an unforced fumble, if you like, or interception, as I would say. It is clearly a mistake.

(END VIDEO CLIP)

ROMANS: One adviser telling CNN Trump himself seems surprised by the negative public reaction to his battle with a Gold Star Muslim- American family. Now for the moment at least, it looks like Trump is heeding the advice from party bigwigs, reaching out to Gold Star families and turning his fire back on Hillary Clinton.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: We let ISIS take this position. It was Hillary Clinton that she should get an award from them as the founder of ISIS. That's what it was. That's what it was, her weakness, her weak policies.

America's been again, it's been humiliated in so many different ways. Wouldn't that be embarrassing to lose to crooked Hillary Clinton? That would be terrible.

(END VIDEO CLIP)

ROMANS: CNN's Jim Acosta is with the Trump campaign in Florida. He brings us with the latest this morning.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: George and Christine, after a string of damaging days, Donald Trump trying to do a little damage control at a couple of rallies in the critical swing state of Florida. At the rally in Jacksonville, Trump told the crowd he met with six Gold Star families to express his appreciation for the sacrifices they've made. That's close as Trump has come to an apology after his confrontation with a family of a fallen Muslim-American soldier.

Here's more of what Trump had to say to this crowd here in Florida.

TRUMP: Speaking of our vets, people, we have and I just visited with some incredible folks. I have no idea where they are sitting, but I know they have a good location, some really amazing Gold Star families.

Where are they? Where are they? Where are they sitting? Oh, you're one. Beautiful.

Where are they? There they are. Incredible people. Incredible people.

(APPLAUSE)

We have amazing people in our country. We have amazing leaders.

ACOSTA: Trump only briefly addressed the questions of the state of his campaign after sources said privately that staffers are frustrated by the candidate's ability tendency to occasionally go off-message. At this recent comments that he's not ready to endorse House Speaker Paul Ryan in his battle for reelection. Trump told a crowd here in Florida that his campaign is united -- George and Christine.

(END VIDEOTAPE)

HOWELL: Jim, thank you.

No doubt it is a tightrope walk for Trump's running mate Mike Pence, trying to smooth over the rift between Republican leaders and the top of the ticket. In fact, Pence split with Trump on the issue of endorsing House Speaker Paul Ryan and his re-election battle. Pence supports Ryan. Just days ago, Trump sparked a furor within the party saying he was not ready to endorse Ryan.

Last night, Pence told FOX News Trump actually encouraged him to endorse Speaker Ryan.

(BEGIN VIDEO CLIP)

MIKE PENCE (R), VICE PRESIDENTIAL CANDIDATE: I strongly endorse his re-election. He is a long-time friend. He's a strong conservative leader.

[04:05:01] I believe we need Paul Ryan in leadership in the Congress of the United States to rebuild our military, to strengthen our economy, and to ensure that we have the kind of leadership in this country that will make America great again.

(END VIDEO CLIP)

ROMANS: Time for an early start on your money this morning. Donald Trump took in $80 million in fundraising in July, according to his campaign. The haul powered by small donations, helped close the financial gap with Hillary Clinton. While $80 million is an uptick from Trump's June tally, the Republican nominee still struggles to collect from the country's top donors, an area where Hillary Clinton has had more success.

Trump's campaign raised $16 million from big ticket fundraising events typically require a $1 million minimum contribution, 80 percent of July's funds came from digital and direct mail fundraising. All told, the campaign currently has $37 million cash on hand, but while closer, that number still trails Hillary Clinton's campaign by about $20 million.

HOWELL: Meanwhile, Hillary Clinton is on the campaign trail hitting battleground state and slamming Donald Trump specifically for his business practices. The Democratic nominee she will be in Nevada, I should say. Staffers say her speech will focus on how she plans to grow the middle class.

Wednesday, Clinton ripped Donald Trump at a tie factory in a heavily Hispanic blue collar suburb of Denver.

And our Joe Johns was there.

(BEGIN VIDEOTAPE) JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: Christine and George, so much of Hillary Clinton's visit here has been about outsourcing jobs and the economy. She hit Donald Trump very hard here in Commerce City, Colorado, talking about the fact he outsources the manufacturer of the products he makes, including neck ties. Hillary Clinton even visited a neck tie manufacturer here in Colorado, carrying with her a neck tie that she said made by Donald Trump's company in China.

HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: I really would like him to explain why he paid Chinese workers to make Trump ties. This is one of them. It's got its name on it, of course. And instead of deciding to make those ties right here in Colorado, with a company like Knotty. As I said over the past week, in many settings and factories across Pennsylvania and Ohio, I mean this because if he wants to make America great again, he should start by making things in America.

JOHNS: The Hillary Clinton campaign riding high with that record $90 million fundraising haul in the month of July, including a big 24-hour period the last day of the Democratic National Convention. From here, Hillary Clinton is going on to Las Vegas, Nevada -- George and Christine.

(END VIDEOTAPE)

ROMANS: All right. Joe, thank you for that.

New details this morning on the administration's decision to send $400 million in cash on a plane to Iran last January. "The Wall Street Journal" reporting the Justice Department rejected the cash shipped at the same time Iran was releasing four imprisoned Americans. Those objects were overruled by the State Department.

According to "The Journal", the timing and manner of the distraction disturbed Justice officials who warned it would look like a ransom payment. The Obama administration denies any link between the prisoner release and the payment.

HOWELL: The Pentagon is withholding $300 million in military aid to Pakistan. It's another sign the U.S. is growing increasingly frustrated with the regime in Islamabad for not fighting terrorism. The White House wants the government there to be more aggressive against the Taliban and its affiliates.

Later today, President Obama heads to the Pentagon to meet with his anti-ISIS team. This just days after launching airstrikes against ISIS inside Libya.

ROMANS: All right. A terrorist scare in London. A knife-wielding man stabs six people, killing one, in a popular shopping area. We're going to go there next.

(COMMERCIAL BREAK)

[04:13:11] HOWELL: Welcome back.

A terrorist scare in the heart of London in the popular shopping center. A man with a knife went on a stabbing rampage last night. One woman is dead, five others wounded, one apparently an American.

CNN is live in London. Phil Black is following the story for us.

Phil, good to have you with us.

So, at this point, police not ruling out terrorism.

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: That's right, George.

It was all over in minutes, it would seem. Police say that in those few minutes, a man, a 19-year-old man with a knife was able to attack a group of people, injuring six of them here on the street behind me. One of them a woman who authorities say they believe is in her 60s died on the foot path just across the road as a result of the injuries.

Two others are still in hospital receiving treatment. The 19-year-old man, while he was detained pretty quickly. Police got here and used a taser to subdue him. He was taken into custody after receiving some initial medical attention in hospital. We're told he is now being held in custody, held on suspicion of murder.

So, police say they're keeping an open mind about what the motive could possibly be. So, they're not ruling out terrorism yet. What they are saying is they believe that mental health issues played a significant role in this and that seems to be the focus of the case so far.

The investigation is being led by homicide investigators. Not the anti-terror police.

The how and why this happened in a sense is, I wouldn't say, irrelevant, but it has happened in a city that is like so many European cities. Significantly on edge because of the many recent terror attacks across Europe in recent weeks and months. The police have responded today by putting extra armed police on the streets especially those who were trained to deal with terror attacks -- George.

[04:15:03] HOWELL: CNN international correspondent Phil Black live for us in London -- Phil, thank you so much. And we'll stay in touch as this investigation continues.

ROMANS: All right. Back here, a veteran in Washington, D.C. transit officer charged with attempting to provide material support to ISIS. It is the first time a U.S. law enforcement officer is arrested for aiding terrorists. Police say 36-year-old Nicholas Young tried to help ISIS with potential recruits, unaware he was actually communicating with undercover officers.

CNN's justice correspondent Evan Perez brings us more.

(BEGIN VIDEOTAPE)

EVAN PEREZ, CNN JUSTICE CORRESPONDENT: Good morning, Christine and George. Nicholas Young has been a cop for the D.C. transit police for about 13

years. And for the past six years, the FBI has been keeping an eye on him. During that time, undercover agents and informants have been recording his conversations, including threats he made against federal agents.

But none of that crossed the line for charges until last week when he bought 22 gift cards for use in messaging apps, and he sent them to someone he thought was working with ISIS in Syria. Now, he is the first police officer in this country to be charged with providing material support to terrorists.

There are confusing parts to his background. He was a Muslim convert, but he spoke of having Nazi sympathies in his past. He dressed up as Jihadi John for a Halloween party, carrying around a headless orange jump suit. But he had an eagle tattoo on his neck associated with neo-Nazis.

Now, during the time that he's been under investigation, the FBI has arrested two of his associates. One is Zachary Chesser, serving time for supporting the Somali group Shabaab. He is known for making threats against creators of the TV show "South Park."

And another is Amine El Khalifi. He was arrested on the plot to blow up the U.S. Capitol.

The Justice Department's National Security Division says Young is among more than 100 people arrested for supporting ISIS in the last couple years. He faces 20 years in prison if he is convicted -- Christine, George.

(END VIDEOTAPE)

HOWELL: Disturbing case. Evan, thank you.

In Florida's Miami-Dade County, spraying is set to start in a few hours covering a ten-square mile area where 15 cases of the Zika virus were transmitted domestically by mosquitoes. The CDC has warned pregnant women and their partners to avoid traveling to the Wynwood area of Miami. That's where all but one Zika cases was identified. The Zika virus can cause severe birth defects.

Florida's Governor Rick Scott says free Zika testing will now be offered to all pregnant women across the state.

ROMANS: The Supreme Court siding with the Virginia school board in the fight over transgender rights. The ruling temporarily blocks a lower court ruling to allow a transgender male high school student to use the boy's restroom when school begins in September. School officials in Gloucester County made an appeal to exempt them from an Obama administration. The schools nationwide must allow students to use the bathrooms identifying with their gender identity.

HOWELL: President Obama has set a single day record for commuting prison sentences. He granted clemency to 214 inmates on Wednesday, continuing his effort to release federal prisoners serving sentences seen as excessive. The president has now commuted sentences for a total of 562 inmates. That is more than his nine predecessors combined.

ROMANS: An intense manhunt underway in Arizona to find the so-called serial street shooter. The suspect recently struck last month shooting a dad and his 4-year-old son in their car. Fortunately, they are OK. This is the ninth attack police connected to this gunman. He started the shooting spree last month and drives multiple vehicles.

HOWELL: Let's talk about the heavy rains in the southwest bringing the possibility of flash flooding today. Let's go to meteorologist Pedram Javaheri with more.

(BEGIN VIDEOTAPE)

PEDRAM JAVAHERI, AMS METEOROLOGIST: George and Christine, good morning to you both. Yes, the southwest, you know, when you think about the flooding across the region, about 13 million people in the four corners states dealing with the flood washes and thunderstorms all over the place south of Las Vegas and Nevada and northern Arizona and the Mogollon Rim.

Again, notice, you have a nice little circulation across this region. You have afternoon heating, afternoon convection and you have yourself a recipe for flash flooding this time of year.

And speaking of flash flooding, look what's happening down around portions of Belize, their first tropical landfall since 2010 across this region. It comes out as a category one, made landfall just a couple of hours ago, and it will eventually we think move in towards Southern Mexico, with second landfall sometimes Saturday night across that region as a tropical depression.

So, here's what we are looking at. Dallas with the triple digit heat, St. Louis with a cooling trend in the 80s. Enjoy in New York City, it's been very comfortable relatively speaking for the last couple days. It looks like it will warm up a little towards this weekend -- guys.

HOWELL: Pedram, thank you.

Are you excited for the Olympics?

[04:20:00] The opening ceremonies are one day away, but the games have already begun. We are live in Rio, next.

(COMMERCIAL BREAK)

ROMANS: Oh, the countdown to the Rio Olympics winding down. The opening ceremony takes place tomorrow night. And it appears many Russian athletes may witness the lighting of the Olympic cauldron from the stands. They could be banned from the competition over doping.

CNN's Christina Macfarlane is live for us in Brazil this morning.

Good morning, Christina. CHRISTINA MACFARLANE, CNN CORRESPONDENT: Good morning, Christine.

Yes, it is staggering to think, isn't it, that there are some 200 Russian athletes who still don't know whether they're going to be able to take part in that opening ceremony in just over 24 hours time.

[04:25:07] And the reason for the delay has been a three-part process that has been under way for the past ten days.

I want to break it down for you quickly. The sports governing bodies have been ruling on the eligibility for the Russian athletes to compete here in Rio. And we've been hearing everyday about new athletes, whether or not they can compete. We have heard about a canoeist who has been cleared to compete here in Rio.

Now, the athletes who have been deemed ineligible, they have had a chance to appeal for the court of arbitration of sport. That is the highest lawmaking decision making based in sport. And if they are deemed eligible, they can be put forward to an IOC three-person panel to get a rubber stamp approval to compete at the Olympic Games.

It is a process that is lengthy and it is the reason for the delay that we have been seeing with all of these Russian athletes. We expect the final decision to come, however, in the form of a press release between now and sometime in the hours building up to that opening ceremony.

But as you can imagine, Christine, there was a great deal of anxiety here not just for the Russian athletes and other athletes they are competing against, because this has huge implications for the medal count. Remember, Russia came fourth in the table at the London 2012 Games.

So, everyone here very much holding their breath to see what happens next.

ROMANS: All right. Thank you so much for that. Dark and early in Rio. Another hour it will be bright behind you. Christina Macfarlane, thank you for that.

HOWELL: The question many Republicans are asking this day. Can Donald Trump's campaign can be saved? The GOP scrambles to hit the reset button to get back on message, as EARLY START continues.

(COMMERCIAL BREAK)