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Early Start with John Berman and Zoraida Sambolin

Trump Lays Out His Plan to Defeat ISIS; Obama, Clinton and Biden Bash Trump; Photo Finish in Women's 400M Sprint; Aired 4:30-5a ET

Aired August 16, 2016 - 04:30   ET

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


[04:30:19] CHRISTINE ROMANS, CNN ANCHOR: Controversial proposals from Donald Trump as he lays out his plans for combating ISIS. An ideology test. A commission on radical Islam. That's just the start.

GEORGE HOWELL, CNN ANCHOR: The world's best known Democrats taking their turns going after Donald Trump. Hillary Clinton, President Obama and Vice President Biden all scorching the Republican on terror and the economy.

ROMANS: And a photo finish in Rio. Two sprinters separated by a fraction of a fraction of a second. Did a dive at the finish line make a difference? We will show you. What a night.

Welcome back to EARLY START. Bright and early this morning, everybody. I'm Christine Romans.

HOWELL: And good morning. I'm George Howell. 30 minutes past the hour. And Donald Trump is hoping to reboot his campaign this morning after giving a major speech explaining his plan to take on and defeat ISIS and safeguard the U.S. from Islamic terrorism.

Trump went on promising a global clash against Islamic terror, comparing it to the Cold War. He called for the testing of values of all would-be immigrants. Trump vowed to keep Guantanamo Bay, Cuba open and to launch a commission on radical Islam. He also slammed Hillary Clinton and President Obama this time without again calling them the, quote, "founders of ISIS." Trump blamed the terror group's rise on their policy decisions. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL NOMINEE: We cannot let this evil continue. Nor can we let the fateful ideology of radical Islam -- its oppression of women, gays, children, and non-believers -- be allowed to reside or spread within our own countries.

Any country which shares this goal will be our ally. We cannot always choose our friends, but we can never fail to recognize our enemies. If I become president, the era of nation building will be brought to a very swift and decisive end.

Hillary Clinton lacks the judgment, as said by Bernie Sanders, stability, and temperament, and the moral character to lead our nation. She also lacks the mental and physical stamina to take on ISIS and all of the many adversaries we face.

(END VIDEO CLIP)

HOWELL: And as you would expect, Democrats instantly jumped on Trump's speech. Clinton and Vice President Joe Biden did so together campaigning in Pennsylvania, and the president taking time from his vacation, also slamming Donald Trump.

CNN's Sara Murray is on the road with the Trump campaign in Ohio and has the very latest for us.

SARA MURRAY, CNN POLITICS REPORTER: Good morning, Christine and George. Campaigning yesterday right here in Ohio, Donald Trump said it's time to rewrite America's approach to foreign policy, saying it's time to end the practice of nation building and instead focus our efforts on fighting ISIS on all fronts. And Trump said to do that we need to partner with any ally who's willing to fight ISIS alongside of us.

Now on the more controversial side of this speech, he also unveiled a new set of immigration measures, essentially saying there should be an ideology tests for immigrants coming to the U.S. to weed out anyone who might hold extremist views, whether those are anti-Semitic, anti- gay, or anti-women.

(BEGIN VIDEO CLIP)

TRUMP: We should only admit into this country those who share our values and respect our people. In the Cold War, we had an ideological screening test. The time is overdue to develop a new screening test. I call it extreme vetting. I call it extreme, extreme vetting. Our country has enough problems. We don't need more and these are problems like we've never had before.

(END VIDEO CLIP)

MURRAY: Now Trump delivered this speech from teleprompters. It was a rare moment where this unscripted candidate was directly on message. But the question for Republicans both in and outside of his campaign is whether he can stick with that for the rest of the week.

He'll be campaigning today in Wisconsin and we should have a better sense then. Back to you, guys.

ROMANS: All right, Sara Murray. Thank you, Sara.

You know the president's swipe at Trump came at a fundraiser for Hillary Clinton on Martha's Vineyard where he and his family have been vacationing. He mocked Trump without mentioning him by name, saying, "You notice I haven't said much about her opponent. Frankly, I'm tired of talking about her opponent. I don't have to make the case against her opponent because every time he talks, he makes the case against his own candidacy."

That cut came after Clinton and Biden tagged team the Republican nominee at a rally in Pennsylvania. [04:35:01] Here is Clinton slashing Trump's economic proposals.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: So what's Trump's plan? Well, he laid it out last week. And I'll admit, even before he did, I didn't think it was going to be good for working Americans. But it turned out to be worse than I ever imagined.

I know some of you may have friends up here in northeastern Pennsylvania who are thinking about voting for Trump. You know --

(CROWD BOOS)

CLINTON: I know. I know. Friends should not let friends vote for Trump.

(END VIDEO CLIP)

ROMANS: She's been using that line on the stump. Biden in the city where he was raised also tore into Trump.

CNN's Joe Johns has more from Scranton for us.

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: Christine and George, Hillary Clinton continues stumping for votes in Pennsylvania today where polls show she has a healthy lead, but still needs to pick up support from white working class voters. To that end, she came here to Scranton, Pennsylvania, and was joined by Vice President Joe Biden. It's his hometown. He took her to the house where he grew up, also participated in a rally, and launched a stinging attack on Donald Trump, calling him unqualified for the White House.

(BEGIN VIDEO CLIP)

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: There's a guy that follows me right back here, has the nuclear codes. So God forbid if anything happened to the president I had to make a decision, the codes are with me.

He is not qualified to know the code. He can't be trusted. This guy doesn't care about the middle class. And I don't even blame him in a sense because he doesn't understand it. He doesn't have a clue. No, no. He really - I mean, he really doesn't. He doesn't have a clue.

(END VIDEO CLIP)

JOHNS: At the event in Scranton, there was no mention of the investigative notes of Hillary Clinton's interview with the FBI that could be turned over to congressional investigators, the campaign preferring to stay on things that have worked in the past, also making clear they want to push the issue of foreign policy, issuing a Web ad questioning whether Donald Trump is qualified to have the nuclear codes -- Christine and George.

HOWELL: Joe, thank you. Trump supporter and the former mayor of New York Rudy Giuliani is

getting some criticism this morning speaking about Islamic terrorism. At Trump's rally in Ohio, Giuliani claimed there were no successful terrorist attacks on American soil in the eight years prior to President Obama taking office. Giuliani apparently forgetting about, well, something that happened just a few miles from here. 9/11. That unforgettable attack seven years ago and four months earlier. Listen.

(BEGIN VIDEO CLIP)

RUDY GIULIANI (R), FORMER MAYOR OF NEW YORK CITY: Remember, we didn't start this war. They did. We don't want this war. They do. Under those eight years before Obama came along, we didn't have any successful radical Islamic terrorist attack in the United States. They all started when Clinton and Obama got into office.

(END VIDEO CLIP)

HOWELL: Trump's spokesperson later clarifying that Giuliani meant that there hadn't been any terrorist attacks since 9/11. That didn't so much soothe over the wrath, though, of the "New York Daily News." Take a look at the cover here, calling it, quote, "Sick, Despicable and Rudy's Most Pathetic Politicizing of 9/11 Yet."

ROMANS: All right. New details emerging this morning on that corruption investigation in Ukraine naming Trump campaign chairman Paul Manafort. Ukrainian officials confirm to CNN that Manafort's name appears in a secret off-the-books ledger showing a pro-Russian political party paid him $12.7 million in cash.

The officials say they are still investigating and that there is no proof Manafort actually received this illegal payment. Manafort strongly denying taking improper payments. In a statement Monday acknowledging he did campaign work for the pro-Russian party, but he called reports he accepted off-the-books cash, quote, "unfounded, silly and nonsensical."

HOWELL: The rules to qualify for the upcoming presidential debates have now been made public. Donald Trump and Hillary Clinton are on the definite list of participants. That is because they are registering above 15 percent in five combined national polls. Libertarian Gary Johnson and the Green Party's Jill Stein are polling below 15 percent and will not earn that spot on the debate stage. That is unless their numbers improve by the mid-September cutoff. If Stein or Johnson reach 15 percent that threshold after the first debate, they will be invited to the second debate.

ROMANS: The White House has transferred 15 more detainees out of Guantanamo Bay. All of them being sent to the United Arab Emirates. It's the largest transfer of inmates from the facility since President Obama took office. The administration says a review board found their detention was no longer necessary because they pose no threat to U.S. security. Of 242 detainees held at Gitmo when Obama came into office, only 61 remain, 55 others transferred to 13 countries in the last 11 months alone. [04:40:09] HOWELL: A disturbing story that we're following. A

hospital run by Doctors Without Borders hit by a deadly air strike in northern Yemen. At least 11 people killed and 19 others wounded. With that attack being blamed on a Saudi-led coalition.

Doctors Without Borders claims that the Saudis knew exactly where the hospital was located. No comment so far from Saudi officials. This is the fourth time in less than 12 months that a Doctors Without Borders facility has been bombed.

ROMANS: Record highs for stocks. The three major stock market averages have never been higher. And Warren Buffett's firm is doubling down on Apple stock. Berkshire Hathaway now owns 15.2 million shares of Apple. Worth about $1.5 billion. Regulatory filings show the company bought 9.8 million of those shares in the first quarter.

You know, that was bad timing. Apple slumped after a reported two straight quarters of declining iPhone sales. But Apple has rebounded since then. Berkshire Hathaway usually stays away from tech stocks. Warren Buffett says his deputies made the call to buy Apple. Also in the filing it cut its stake in Wal-Mart by about half.

Wal-Mart, one of the best performing stocks in the Dow 30 this year. Look at that. If you own Wal-Mart shares, you've got a near 20 percent gain. Drug giant Merck, United Health Care, Caterpillar are the only stocks in the average that are outperforming Wal-Mart. Amazing years for those stocks. Many of them wildly held.

Those stocks helped the Dow hit a record high yesterday. Look at hat. The Nasdaq and S&P 500 also hit records.

You know, George, we got futures down slightly this morning, but a lot of people are looking at these stock market numbers and saying this was the worst start to the year in history. Remember in January? It was terrible.

HOWELL: Yes.

ROMANS: February, there's a swoon in the stock market. And since then, the Nasdaq up 20 percent I think from that low. It's just been a remarkable rebound from those -- that malaise earlier in the year.

HOWELL: Let's hope it keeps going. For as long as it can.

ROMANS: Yes. We will talk a little bit later in the program. The next 10 minutes, we'll talk about why it's going up.

HOWELL: I'd be interested to know.

ROMANS: OK.

HOWELL: Following the situation in Louisiana. The death toll rising there following devastating flooding. We'll have the very latest on what lies ahead for that region, next.

(COMMERCIAL BREAK)

[04:46:26] HOWELL: Welcome back.

A suspected arsonist arrested in connection with the raging Clayton Fire in northern California. The 40-year-old suspect Damin Anthony Pashilk now facing 17 counts of arson for allegedly starting several fires in the Lake County area over the past year, including the Clayton Fire which is now only 15 percent contained this morning. It's already destroyed more than 175 homes and structures with 1500 more threatened.

ROMANS: A Brooklyn man is charged with murdering a local imam and his assistant. 35-year-old Oscar Morel was arrested Sunday night on charges related to a hit-and-run accident only to then be connected to the killings after authorities executed a search warrant the next day and found the murder weapon. Imam Maulana Akonjee and an aide were killed -- shot and killed in broad daylight Saturday after a religious service at a Queens mosque. Police say there is no indication that shooting was a hate crime.

HOWELL: In Milwaukee, after two nights of violent protest, a 10:00 p.m. curfew on teenagers, and a heavy presence of religious leaders has restored calm to the streets there. Earlier Monday a police station in the Sherman Park neighborhood had to be shut down briefly because of threats and shots fired in that area. The curfew will be imposed indefinitely. And 100 National Guard members are on hand and in the ready in case they're needed.

ROMANS: The death toll and the flood waters are on the rise in Louisiana. Nine fatalities now confirmed with thousands of forced to evacuate their homes. And Baton Rouge police confirmed a firefighter was shot accidentally by another firefighter during the flood response effort on Monday. No word on his condition this morning.

he death toll and flood waters on the rise in Louisiana. Nine fatalities. And Baton Rouge confirm a firefighter was accidentally shot by another firefighter during the flood response effort on Monday. No word on his condition this morning.

HOWELL: We have been following that story for several days. I remember there have been so many rescues.

ROMANS: Thousands of rescues. Yes.

HOWELL: Incredible the things people are doing. And the question, when will the rain stop? When will things dry out there?

Let's bring in our meteorologist Pedram Javaheri.

PEDRAM JAVAHERI, AMS METEOROLOGIST: George and Christine, good morning, guys.

(WEATHER REPORT)

ROMANS: All right, Pedram. And our producer in my ear telling us 20,000 rescues over the weekend. HOWELL: Wow. That's just incredible.

ROMANS: Unbelievable. Just the misery there. And it's going to wet for rest of the week, for sure.

All right. In the stock market, wow. That's a technical term. Wow. For the first time since 1999, the three major stock market averages are all setting record highs. The stock market on fire. Can anything stop this record run? We're going to analyze why stocks are so high. Does it have anything to do with politics and can it continue?

EARLY START on your money next.

HOWELL: Good question, yes.

[04:49:57]

(COMMERCIAL BREAK)

HOWELL: Aiming for the gold at the Olympic Games. An incredible 400- meter sprint on the women's side coming down to a photo finish. A nail biter between the Bahamas' Shaunae Miller and American Allyson Felix who crossed the finish line. That's the big question.

Let's bring in CNN's Christina Macfarlane live in Rio following it all.

Christina, when I look at that one image, it's just hard to tell who crossed the finish line first. But we know now.

CHRISTINA MACFARLANE, CNN WORLD SPORTS CORRESPONDENT: Yes, we absolutely do, George. But we were on the edge of our seats trying to find out what a dramatic result, a dramatic finish to the women's 400- meters. Now it was meant to be the crowning coronation for USA's Allyson Felix when she was picked to the win as you saw in that picture by Shaunae Miller of the Bahamas. Now Miller led from the off of the top of the race but coming down the home stretch, Felix drew leather with her and then on the line Miller dove forward, lurching forward the goal for medal position.

[04:55:07] Questions being asked, you know, had she stayed on her feet, would it have been gold, would it have been silver? Well, it took about 20 seconds to deliberate about it and then the rules dictates that her torso crossed the finish line, that she was the one that walked away with gold, and it was the first gold for the Bahamas in these games. Allyson Felix left to console herself with a silver medal. But she is still officially the most decorated female in track and field history.

Now elsewhere, we learned that USA's Simone Biles is human after all. And maybe, you know, the pressure of attempting to go for five golds at the games. But Biles slipped up on the vault after attempting a routine summersault tuck. She did manage to stay on her feet, on the beam, but she ended up coming away with a bronze.

It was nice, however, to see her teammate little Laurie Hernandez taking the silver. Afterwards Biles said she wasn't too distraught, as she tweeted saying that she was more than happy to take bronze. And she should get back to winning later on Tuesday because you've got the floor routine coming up. And this is her bag. She's on match in this event for power and strength. And be sure to look out for that signature Biles. That's the double layout with a half turn that not even her male compatriots can match.

Now after wowing the world taking a third straight 100-meter cycle on Sunday the world's fastest man Usain Bolt begins his quest to defend his 200-meter later this Tuesday. And it will be gold medal number eight if he manages it. Bolt says he's also on a mission to break the world record and go sub-19 seconds.

Now interestingly, he says it's the only event that makes him nervous when he stands in the starting blocks. Hard to believe that. His biggest opponent is probably likely to be his training partner, Johan Blake, and the final part of that possible triple-triple will be run on Saturday of course in the 4x100 meters. Just one day before his 30th birthday, and what a gift that would be.

HOWELL: Seeing Bolt gets nervous? Wow. I can't believe that would happen. Also, I want to also ask you about the host nation there, Brazil, winning its first gold in an athletic event. Tell us more about that.

MCFARLANE: Ye, that's right. It was completely unexpected results tonight, George. You know, we expected to see Brazil taking in the beach volleyball and the judo. But it came in the pole vault. And it was a dramatic two-horse race at the end. It was Tiago da Silva of Brazil, relatively unknown in the sport, up against the defending champion Renaud Lavillenie. Now in the end, Tiago Silva he -- de Silva, he had the vault of his life. He finished 6.01, that is 11 centimeters better than his personal best. He took a national record. An Olympic record.

And I can tell you, the crowd in the stadium kicked off. They were crying, they were stomping. Very, very popular result here in Rio.

HOWELL: Christina McFarlane, live for us in Rio. Christina, thank you.

ROMANS: All right. More gold medals -- gold medals all around for stock market investors. It is a trifecta for stocks. Records highs, guess both stocks have never been higher. The Dow, the Nasdaq and the S&P 50 blazed into unchartered territory. All three now posting strong gains for the year Nasdaq has had the most impressive rally from its low back in February. Up more than 20 percent from that low.

So after the worst start to the year for stocks in history. Remember that? Investors are now riding high. There's a bunch of reasons why. The Fed is holding rates steady. Oil prices have stabilized.

Remember the Brexit vote? It shocked investors here but quickly it became clear the U.S. is in a much stronger position than the UK or Europe. Remember all those fears about China earlier in the year that had

stocks off to the worst start ever? Those fears have disappeared. Investors are OK now with China's new slower growth rates. And here in the U.S., jobless rate below 5 percent. Strong jobs gains. What's happening right now? Looks like Dow futures down a little bit. You've got -- you know, you've got stock markets taking a bit step back this morning. Oil prices there -- you can see oil kind of stable there.

Now markets seem to be predicting a Hillary Clinton victory in November. The theory goes like this, she does have ties to Wall Street. She is a known commodity. Donald Trump's policies are atypical of Republicans. Traditional pro-business have not endorsed him. Have not endorsed his policies. A Trump presidency would bring uncertainty to investors. So at least now it looks like the stock market is betting on Hillary Clinton.

In media news, Gawker is set to be sold at auction today capping a tumultuous several months. The sale comes after Gawker lost $140 million privacy lawsuit to Hulk Hogan. Real name Tony Bollea. The suit game after Gawker posted a sex tape of the wrestling star with a friend's wife. The man who bankrolled Bollea in that fight, the man name Peter Thiel, a Silicon Valley venture capitalist. You might remember he was -- took the stage at the RNC.

He wrote in a "New York Times" op-ed yesterday, quote, "The press is too important to let its role be undermined by those who would search for clicks at the cost of a profession's reputation." Details of Thiel's personal life were exposed by a Gawker site back in 2007.