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Early Start with John Berman and Zoraida Sambolin

Trump Rally Examined; Clinton Again Calls on Trump to Release Tax Returns; New Filming Technique Attempting to Get People Back in Theaters. Aired 5-5:30a ET

Aired August 12, 2016 - 05:00   ET

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


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DONALD TRUMP, U.S. PRESIDENTIAL REPUBLICAN CANDIDATE: They made a mistake. But we should have never ended it the way they ended it. By ending it the way he ended it and he got everybody out and he let them know when and we're leaving and they just sat back -- they just sat back and they went in.

JIM ACOSTA, CNN SENIOR CORRESPONDENT: Even before Trump started addressing the crowd at this rally there was an incident in the venue. Three men holding up a confederate flag and refusing to take it down. For 15 to 20 minutes. Eventually campaign staffers and local law enforcement officials convinced the men to take the flag down. So far, no reaction from the Trump campaign. Alison and Ryan.

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RYAN NOBLES, HOST: Thanks Jim. Let's talk more about that chat now where Reince Priebus reportedly warned Trump about the damage that he can inflict on down-ballot candidates.

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NOBLES: It's something that leading Republicans are very worried about. 75 of them in fact signing a new letter urging the party to shift its resources away from the Trump and toward at risk house and senate candidates. Trump says such a shift never came up in his talk with the party chairman.

TRUMP: And I'm the one that's funding. I'm the one that's raising the money. And other people are getting to use the money that I raise. (Inaudible) funding the Republican Party. I'm the one raising the money for them. In fact right now, I'm in Orlando I'm going to a fundraiser for the Republican Party. So if they want to do that, they can save me a lot of time.

NOBLES: Now sources familiar with the call tell CNN that Priebus never threatened to shift party resources and that it's too early to make that decision. But those sources say Priebus did underscore the need for Trump to take public criticism from vulnerable Republicans without lashing back. Priebus reportedly telling Trump those candidates may need to put some daylight between themselves and the controversial top of the ticket and that is just the way politics works.

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ALISON KOSIK, HOST: Donald Trump adding nine new members to his Economic Advisory Council. Eight of them women just a week after he faced harsh criticism for unveiling an all-male economic panel. Trump's announcement came coincidently just as Clinton took the podium in Detroit to deliver her economic address.

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KOSIK: The speech itself though light on new policy proposals. It was mostly a rebuttal to Trump's economic address from Monday. Clinton blasted what she called the Trump loophole the cuts to business taxes that she said would mainly benefit Trump and wealthy people like him. This as the source tells CNN that Clinton and running mate Tim Kaine

will increase pressure on Trump to release his taxes because they're soon going to be releasing their own returns.

CNN's Jeff Zeleny has the latest from the Clinton campaign.

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JEFF ZELENY, CNN CORRESPONDENT: Ryan and Alison, Hillary Clinton calling again on Donald Trump to release his tax returns. Something he has refused to do. Of course, he is the only presidential nominee since Richard Nixon to not release any tax returns. I am told by people close to her campaign she could release her returns as early as today, her 2015 returns. Of course that makes a library of some 38 years of tax returns the Clintons have filed. Their average tax rate is basically around 30%. We will find out later today what her tax return rate was in 2015.

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ZELENY: But Tim Kaine also is scheduled to release some ten years of Tax returns. The Clinton campaign wants to keep pressure on Donald Trump to release his returns or highlight the fact that he is not. It is all part of their argument to paint him as a wealthy man who is in it for himself. Part of her campaign message she made Thursday in Michigan.

HILLARY CLINTON, U.S. DEMOCRATIC PRESIDENTIAL CANDIDATE: Now compare what Trump says. Now there is a myth out there that he will stick it to the rich and powerful because somehow he's really on the side of the little guy. Don't believe it.

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ZELENY: And that is a central part of Hillary Clinton's message trying to point out to working class Americans that she would be a better fighter for them. Donald Trump as she says is in it for himself and the wealthy. Ryan and Alison.

NOBLES: Thank you, Jeff. Clinton critics weren't the only people asking questions about the relationship between the Clinton foundation and her state department. CNN has learned FBI officials wanted to open an investigation into whether there was a criminal conflict of interest.

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NOBLES: A U.S. official says the FBI met with the Justice Department officials just a few months ago after a bank reported suspicious activity by a foreigner who donated to the foundation. Justice officials had looked into the foundation a year earlier after the release of the controversial book, "Clinton Cash" but they found insufficient evidence to launch a probe.

So at this year's meeting, the DOJ again declined to open a case against the foundation. The FBI Justice Department and Clinton Foundation all declined to comment.

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KOSIK: A lot to talk about when it comes to politics. Joining us to break down the day's political action on both sides let's go to CNN politics reporter Tal Kopan live in our Washington Bureau. Thanks for getting up with us this morning.

TAL KOPAN, CNN POLITICS REPORTER: Sure, good morning.

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KOSIK: You know so you look at what Donald Trump is doing calling President Obama the founder of ISIS and he really dug in on this on the Hugh Hewitt Radio show. I want to play the clip for you and get your reaction.

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HUGH HEWITT: Last night, you said the president was the founder of ISIS. I know what you meant, you meant that he created the vacuum, he lost the peace.

TRUMP: No, I meant he's the founder of ISIS. I do. He is the most valuable player. I give him the most valuable player award. I give her, too by the way, Hillary Clinton.

HEWITT: But he's not sympathetic to them, he hates them. He is trying to kill them.

TRUMP: I don't care, he was the founder.

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KOSIK: So there's just this stream, this constant daily stream of this loose talk from Donald Trump coming out. It doesn't seem to be helping his poll numbers, do you think he's maybe taking a step back and saying, hmm, this isn't helping me much?

KOPAN: Well I mean, do you mean in the last 24 hours? You know there's -- this is an indication that you know all the conversations that have been hoisted upon him to this point where he - you know there's been stumble after stumble and there have been folks who say no, we're impressing upon him the importance of words.

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KOPAN: You know this was yesterday morning. So in the last 24 hours, I guess it's possible that he's had a major turnaround. But I think it's pretty clear at this point that Donald Trump has a plan for what he wants to do in this election and it's to be Donald Trump. It was pretty remarkable in that clip. You heard Hugh Hewitt saying you know trying to help him in saying you know, I know what you mean, you were speaking somewhat metaphorically and prodding him over several questions and Donald Trump was steadfast and said no, I meant what I said.

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KOSIK: Just very quickly got to know, do you think that his campaign okayed this kind of talk ahead of time?

KOPAN: It's really hard to say but he's repeated it several times since so there is no indication that the campaign has told him don't ever say this again. It has become a staple and in fact sometimes we see Donald Trump sort of double down on things that are called questionable and use them more. So it's quite possible we will continue to see this quite a bit going forward.

NOBLES: Yes, and you know what's also interesting about Donald Trump obviously he's - his rhetoric is pretty loose in the campaign but it's also been loose before he was even a Presidential candidate, and that this takes us back to his criticism of pulling out of Iraq too soon and what he said about the Iraq war in 2007. Listen to what he told Wolf Blitzer back then.

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WOLF BLITZER, CNN ANCHOR: How does the United States get out of this situation? Is there - is there a way out of this?

TRUMP: How do they get out? You know how they get out. They get out, that's how they get out. Declare victory and leave because I'll tell you, this country is just going to get further bogged down. They're in a civil war over there Wolf, there's nothing that we're going to be able to do with a civil war. They are in a major civil war.

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NOBLES: Tal, isn't this a direct opposite of what he is saying today that the U.S. got out too quickly? How is he explaining this comment that he gave to Wolf back in 2007?

KOPAN: Well we haven't heard an explicit reaction to this specific comment. You know in the past, we've heard him sort of explain away all kinds of things he's said. You know he makes it a familiar talking point on the trail that he opposed the invasion of the war in Iraq. But there is a clip of him out there floating around on Howard Stern before the invasion saying he was in favor of it.

So over and over, we have seen Donald Trump sort of rewriting his past statements a little bit and claiming what he wants to on the trail about where he stood. And you know what the fact is his supporters haven't punished him for it -- yes, his poll numbers are not where they need to be to win an election and he has yet to show that he can win over the majority of the electorate. But his core supporters have really been willing to go along with him for the ride. Sort of wherever he tells them he wants to go.

So it's unclear if he is going to sort of lose the support that he already has for things like this where it might hurt him is trying to pick up and gain some ground with Hillary Clinton.

KOSIK: All right, to the RNC. Republicans growing very, very nervous as they listen to Donald Trump have these loose comments. Listen to what Trump -- how Trump responds to it based on the fundraising that he's doing for the party.

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TRUMP: But I'm the one that's funding, I'm the one that's raising the money and other people are getting to use the money that I raise. All I have to do is stop funding the Republican Party. I'm the one raising the money for them. In fact right now I'm in Orlando, I'm going to a fundraiser for the Republican Party. So if they want to do that, they can save me a lot of time.

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KOSIK: He just doesn't care, does he?

KOPAN: Ever the negotiator. You know there are some - there are some who think that this story that came out about the RNC potentially weighing, cutting off resources to Donald Trump there are some who think that was sort of intentionally put out there as a narrative to try to get him back in line. And if that's the case, this is Donald Trump's push back on that and using, through the media the opportunity to put leverage right back and say you know what? Right now, I am the money maker. And if you want to do something like that, you're going to cut off the stream.

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KOPAN: And you know we reported -- the narrative that was out there it wasn't nearly as confrontational as was being reported. You know and the idea that there might be a return to the '96 strategy with Bob Dole and sort of insulating house and senate candidates, that's something our reported donors were talking about you know back in May.

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KOPAN: So this has been out there for a while and we're seeing some negotiating back and forth through the media right now. NOBLES: You know but I think it also demonstrates how intertwined the

party is with their candidate whether they like it or not. He's certainly raising a lot of money for them and cutting him off may not be in their best interests.

KOSIK: Absolutely. All right.

NOBLES: Tal Kopan, thank you for that report this morning.

KOPAN: See you in a bit.

KOSIK: Hillary Clinton kind of sounded a little bit like Donald Trump talking about trade in her big economic speech yesterday, listen to this.

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CLINTON: So as President, I will stand up to China and anyone else who tries to take advantage of American workers and companies. And I'm going to ramp up enforcement by appointing for the first time a chief trade prosecutor. I will triple the number of enforcement officers and when countries break the rules, we won't hesitate to impose targeted tariffs.

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KOSIK: OK, so the key phrase there, targeted tariffs. This is something we haven't heard from Clinton before. We don't have details yet on exactly what will be taxed. Donald Trump says he wants to renegotiate trade deals and impose hefty tariffs on all goods from places like China. Experts say that could start a trade war that would send the U.S. economy into a recession and cost millions of jobs.

NOBLES: American pride on full display in Rio.

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NOBLES: More gold medals for team USA making history in the process. We are live in Rio next.

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KOSIK: American swimmer Michael Phelps making history yet again. Adding new medals to his record Olympic hall winning his 22nd career gold on Thursday. Phelps is now 4 for 4 at the Rio games and the gold rush for team USA is not stopping there.

CNN's Coy Wire following all the action for us live from Rio. Good morning, Coy.

COY WIRE, CNN CORRESPONDENT: Good morning, Alison. Mmm Mmm is right, they keep rolling. That 22 gold you mention for Phelps. 26 career medals overall. I should have packed my thesaurus before I left for Rio because we're sounding like a broken record here, we need more adjectives to describe Phelps' greatness.

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WIRE: Once again, dominant in the 200m IM, winning the event for a fourth straight Olympics. It's never been done before. A highly anticipated showdown between Phelps and his teammate Ryan Lochte. But Lochte wasn't in the finish. He finished fifth overall.

Now we will see Phelps again today guys in the 100-meter butterfly final. If he wins, that would be four Olympic golds in h that event as well.

Check out the scene from the Ravens pre-season game last night. They put Phelps' race on the jumbotron and watched him win during a time out. Phelps is from Baltimore, he's a huge Ravens' fan and it is clear Baltimore loves him right back.

Now another historical moment yesterday, American swimmer Simone Manuel winning gold the 100m freestyle. She actually tied Canadian swimmer Penny Oleksiak setting an Olympic record though in the process. Manuel is the first African-American to medal in an individual swimming event. Congrats to Simone.

Let's go to gymnastics another Simone getting it done. The U.S. woman's team literally leaping over their competition in Rio. Simone Biles wins the all-around final taking home her second gold medal. Crazy stats. She had a 2.1 margin of victory. That's more than the margins of victories from 1980 to 2012 combined. And get this guys she still has three more events to go. She very likely could have five gold medals before it's all over. Her teammate Aly Raisman no slouch herself, winning silver. These ladies are amazing.

All right, let's take a look how the medals are stacking up. USA in the lead with 38 overall. China in second with 30 and Japan's in third with 22. Another full slate of events today, including Katie Ledecky going for her fourth gold medal of these games. Competing in the 800m freestyle, it's her best event, it's the event she won as a 15 year old in London four years ago.

Also the U.S. men's basketball team playing Serbia today. Track and field officially is going to. So runners, take your marks. It's been an incredible performance that we've seen so far, but so much more to look forward to from here in Rio.

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KOSIK: No shortage of action. Coy Wire, thanks so much.

NOBLES: Thanks Coy.

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NOBLES: A bumpy flight for cross country Jetblue flight - forced to land in South Dakota. Dozens sent to the hospital. We have the details next

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NOBLES: 24 people taken to the hospital after a very bumpy Jetblue flight from Boston to Sacramento was forced to land in South Dakota.

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NOBLES: 22 passengers and 2 members of the flight crew were hurt by the extreme turbulence. People on board posting photos on social media showing injured passengers being taken off the plane on stretchers. A new plane was sent to take passengers the rest of the trip. They are due to arrive around 4:00 a.m. Sacramento time.

KOSIK: Pretty scary there. All right, Health and Human Services Secretary, Sylvia Burwell is redirecting $81 million from other departments to keep the fight against the Zika virus outbreak going.

She just informed house minority leader, Nancy Pelosi that she's exercising her authority to transfer the money from the National Institutes of Health and the Bio Medical Research Authority. The White House had asked congress for $1.9 billion in Zika funding last February, but lawmakers have failed to act on the request.

NOBLES: Former Penn State assistant football coach Jerry Sandusky is scheduled to testify at an appeal hearing in Pennsylvania this morning. The convicted child molester claims his lawyers bungled his 2012 trial. He'll have to convince the court his team was so ineffective that they undermined the fairness of his trial. The 72- year-old Sandusky is serving at least 30 years behind bars for sexually abusing ten boys.

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NOBLES: Who gets the blame for the rise of ISIS? Donald Trump says it is the President.

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NOBLES: Hillary Clinton pushing back on that and more of Trump's rhetoric. The latest on the 2016 race next.

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KOSIK: In a new era of video streaming, the movie theater is facing stiff competition. CNN's Vanessa Yurkevich discovers a new interactive technology that's getting movie goers off the couch and back into the theater.

(BEGIN VIDEO CLIP) VANESSA YURKEVICH, CNN CORRESPONDENT: Need to escape life for a few hours? The movies are an easy answer.

And millions of people agree. The cinema brings in nearly $40 billion worldwide. But it's starting to face major competition from your couch. There's a shorter release time to video which means you could be watching the latest blockbuster at home in just a couple of months and that quick release leads to piracy which cuts into theatre profits by nearly 15 percent.

Water on, water off.

BRANDON CHOI, CHIEF OPERATING OFFICER, 4DX AMERICA: I think the 4DX is the answer for preventing pirates is because you can't really enjoy 4DX with your mobiles and with your T.V. sets and with your home theaters.

YURKEVICH: That's for sure. This is what it's like to experience a movie in 4DX. CJCGV is the company behind it. They're trying to help theaters get people out of their homes and back to the movies.

CATHERINE YI, CREATIVE DIRECTOR, CJ 4D PLEX AMERICA: So In Jason Bourne, there are a lot of fight scenes where you know you have a lot of hand to hand combat. And for those kind of scenes it's really cool to use your air shots. We like to put it in in sync with those punches so you feel like you're a part of the story.

YURKEVICH: The technology was created in South Korea but it's now made its way to the U.S. Big theater companies like Regal and AMC are spending up to $2 million per theatre to bring this experience to their audiences.

TODD GOLDSTEIN, CHIEF PROGRAM OFFICER, AEG: People love it. They love to be here, they love the experience and they want to come again and again and they haven't been shied away by the increased costs that the movie ticket is. You know we've paid back our dollars in really just the first six months.

YURKEVICH: And it doesn't stop at 4DX. There's Screen X, 4DRX, and Photo Ticket.

CHOI: It's not just about earning more revenue in terms of ticket prices. Things like providing different experiences.

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