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EARLY START

CNN Democratic Debate: Progressives and Moderates Face Off in Detroit; North Korea Launches 2 Short-Range Ballistic Missiles; Police Believe Garlic Festival Gunman Acted Alone. Aired 4-4:30a ET

Aired July 31, 2019 - 04:00   ET

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


(BEGIN VIDEO CLIP)

[04:00:13] SEN. BERNIE SANDERS (I-VT), PRESIDENTIAL CANDIDATE: Second of all --

REP. TIM RYAN (D-OH), PRESIDENTIAL CANDIDATE: But you don't know that -- you don't know that, Bernie.

SANDERS: Second of all --

JAKE TAPPER, CNN DEBATE MODERATOR: I'll come to you in a second, Congressman.

SANDERS: I do know it, I wrote the damn bill.

(END VIDEO CLIP)

BORIS SANCHEZ, CNN ANCHOR: Senators Bernie Sanders and Elizabeth Warren fending off attacks from moderate Democrats at the first CNN debate.

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SEN. ELIZABETH WARREN (D-MA), PRESIDENTIAL CANDIDATE: I don't understand why anybody goes to all the trouble of running for president of the United States just to talk about what we really can't do and shouldn't fight for.

(END VIDEO CLIP)

CHRISTINE ROMANS, CNN ANCHOR: The moderate front-runner takes the stage hours from now. Joe Biden joins the next ten candidates in Detroit tonight.

Welcome to our viewers in the United States and around the world. This is EARLY START. I'm Christine Romans.

SANCHEZ: Always a pleasure to be with you, Christine.

ROMANS: Nice to see you, Boris.

SANCHEZ: I'm Boris Sanchez, in for Dave Briggs. It's Wednesday, July 31st, 4:00 a.m. in New York, 3:00 a.m. in Detroit, where last night, things got a little testy on stage. The ideological gap between progressives and moderates an overriding

theme on the first night of the CNN Democratic debates with ten candidates struggling for attention last night at the Fox Theater in Detroit. Moderates trained their fire on the two progressives topping the polls -- Senators Bernie Sanders and Elizabeth Warren, seeming to circle the wagons, avoiding attacks on each other and concentrating on lower polling moderates. At different times, it sort of felt like the adults taking on the jayvee squad playing defense.

One of the key issues up for debates, Sanders' proposed overhaul of the U.S. health care system, Medicare for all. Watch this exchange among Warren, Sanders, former Maryland Congressman John Delaney.

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JAKE TAPPER, CNN MODERATOR: Congressman Delaney just referred to it as bad policy. And previously, he has called the idea "political suicide that will just get President Trump re-elected." What do you say to Congressman Delaney?

SANDERS: You're wrong.

(APPLAUSE)

SANDERS: Right now, we have a dysfunctional health care system: 87 million uninsured or underinsured, $500,000 -- 500,000 Americans every year, going bankrupt because of medical bills, 30,000 people dying while the health care industry makes tens of billions of dollars in profit. Five minutes away from me and John is a country, it's called Canada.

They guarantee health care to every man, woman and child as a human right.

JOHN DELANEY (D), PRESIDENTIAL CANDIDATE: I'm right about this. We can create a universal health care system to give everyone basic health care for free, and I have a proposal to do it. But we don't have to go around and be the party of subtraction, and telling half the country, who has private health insurance, that their health insurance is illegal.

My dad, the union electrician, loved the health care he got from the IBEW. He would never want someone to take that away.

WARREN: Let's be clear about this. We are the Democrats. We are not about trying to take away health care from anyone. That's what the Republicans are trying to do.

(END VIDEO CLIP)

SANCHEZ: And enthusiastic, energetic, and often loud Sanders also taking on John Hickenlooper, the former Colorado governor and Denver mayor arguing that he's one of the few running with executive experience.

(BEGIN VIDEO CLIP) JOHN HICKENLOOPER (D), PRESIDENTIAL CANDIDATE: So again, I think if we're going to force Americans to make these radical changes, they're not going to go along -- throw your hands up --

SANDERS: All right.

HICKENLOOPER: Oh-ho, I can do it. But you haven't implemented the plans. Us governors and mayors are the ones, we have to pick up all the pieces when suddenly the government's supposed to take over all these responsibilities, and there's no preparation The details don't work (ph). You can't just spring a plan on the world and expect it to succeed.

(END VIDEO CLIP)

ROMANS: And the candidates generally avoided cheap shots. But there were still a few notable zingers as Sanders and Warren fended off the centrist attacks. Listen.

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DELANEY: So I think Democrats win when we run on real solutions, not impossible promises, when we run on things that are workable, not fairy tale economics.

TAPPER: Senator Warren?

DELANEY: We can do it.

WARREN: You know, I don't understand why anybody goes to all the trouble of running for president of the United States just to talk about what we really can't do and shouldn't fight for.

(APPLAUSE)

I don't get it.

TAPPER: Can you guarantee those union members that the benefits under Medicare for All will be as good as the benefits that their representatives, their union reps, fought hard to negotiate?

SANDERS: Well, two things. They will be better because Medicare for All is comprehensive. It covers all health care needs. For senior citizens, it will finally include dental care, hearing aids, and eyeglasses.

Second of all --

RYAN: But you don't know that -- you don't know that, Bernie.

SANDERS: Second of all --

TAPPER: I'll come to you in a second, Congressman.

SANDERS: I do know it, I wrote the damn bill.

(END VIDEO CLIP)

COOPER: The Sanders campaign so confident in that comeback that it already is selling "I wrote the damn bill" stickers as a fundraiser on its website, which may tell you how spontaneous the line may have been.

SANCHEZ: Right. For Pete Buttigieg, last night was not about moderates versus progressives. He framed it as right versus wrong. The mayor of South Bend knows he's going to make the cut for the next round of debates.

[04:05:03] He's also got a sizable war chest so he's not desperate. He seemed determined to separate himself from the rest of the pack by staying above the political fray. Watch.

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PETE BUTTIGIEG (D), PRESIDENTIAL CANDIDATE: It is time to stop worrying about what the Republicans will say. Look, if --

(APPLAUSE)

If it's true that if we embrace a far-left agenda, they're going to say we're a bunch of crazy socialists. If we embrace a conservative agenda, you know what they're going to do? They're going to say we're a bunch of crazy socialists.

So let's just stand up for the right policy, go out there and defend it. That's the policy I'm putting forward.

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SANCHEZ: Buttigieg also challenged Republicans to stand up to President Trump, and he this warning for those who chose to look the other way --

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BUTTIGIEG: Today, they are supporting naked racism in the White House or at best silent about it. If you are watching this at home and you are a Republican member of Congress, consider the fact that when the sun sets on your career and they are writing your story, of all the good and bad things you did in your life, the thing you will be remembered for is whether in this moment with this president you found the courage to stand up to him, or you continue to put party over country.

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ROMANS: It was Montana Governor Steve Bullock's first time on the big debate stage. And he did his best to make up for lost time. He cast himself as a more pragmatic progressive, focused on the economy, and against dark money in politics.

On immigration, he said he's against decriminalizing border crossings.

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GOV. STEVE BULLOCK (D), PRESIDENTIAL CANDIDATE: I think this is part of the discussion that shows how often these debates are detached from people's lives. We've got 100,000 people showing up at the border right now. If we decriminalize entry, if we give health care to everyone, we'll have multiples of that.

Don't take my word, that was President Obama's homeland security secretary that said that. The biggest problem right now that we have with immigration, it's Donald Trump. He's using immigration to not only rip apart families but rip apart this country.

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SANCHEZ: Marianne Williamson may be a long shot to make to the next Democratic debate, but there's no doubt she has America's attention. She's a political novice and author with an unconventional perspective. And she stood out on stage as she was flanked by career politicians. She had a frank response to a question about reparations for slavery.

Listen to this.

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MARIANNE WILLIAMSON (D), PRESIDENTIAL CANDIDATE: About $500 billion in financial assistance, it's $500 billion, $200 billion to $500 billion payment of debt that is owed. That is what reparations is.

We need some deep truth telling. We need to recognize that when it comes to the economic gap between blacks and whites in America, it does come from a great injustice that has never been dealt with.

(END VIDEO CLIP)

SANCHEZ: As for what her party must do to defeat President Trump, she said this --

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WILLIAMSON: This is part of the dark underbelly of American society. The racism, the bigotry, and the entire conversation that we're having here tonight, if you think any of this wonkiness is going to deal with this dark psychic force of the collectivized hatred that this president is bringing up in this country, then I'm afraid that the Democrats are going to see some very dark days.

(END VIDEO CLIP)

ROMANS: On a crowded stage, airtime is everything, of course. Elizabeth Warren wound up with the lion's share. Look at the breakdown. The Massachusetts senator spoke for 18 minutes and 11 seconds. Bernie Sanders was second with 17 minutes, 31 seconds. Then there's a big drop-off to third place with Pete Buttigieg, 14 minutes, nine seconds. SANCHEZ: Now, Senator Warren may have scored the most face time, but

it was Marianne Williamson who's breakout moments made her the most searched of the ten candidates during the debate in 49 of 50 states. She was also the candidate trending most heavily nationwide on Twitter.

According to Trends24, as of midnight, Williamson, the only one to beat the "Bachelorette" finale followed by Delaney, Sanders, Warren, and Ryan. "Bachelorette" finale really a high mark.

ROMANS: That says so much about America.

Ten more Democrats take the stage tonight, including frontrunners Joe Biden and Kamala Harris. The second night of the CNN Democratic debates all starts at 8:00 p.m. tonight live again from Detroit, only on CNN. Set was beautiful --

SANCHEZ: It was gorgeous.

ROMANS: Fox Theater was lovely. Did a great job.

SANCHEZ: Look forward to more tonight.

And as the candidates were getting ready to debate, North Korea launched two more missiles. We have a live report from the region next.

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[04:14:00] ROMANS: North Carolina -- North Korea, sorry, North Korea firing two short-range ballistic missiles into the Sea of Japan, according to the South Korean military. It is the second missile test by Pyongyang in the last week.

CNN's Ivan Watson is monitoring developments. He is live in Hong Kong.

Here we are getting ready for a Democratic debate, and this.

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes. This is a surprise for the Korean peninsula, two short-range ballistic missiles, according to South Korea, that were fired from North Korea's eastern coast. And it's the second such short range ballistic missile launch in less than a week. And North Korea seems to be stepping up the frequency of these missile launches.

It broke a self-imposed moratorium on May 9th with a first round of short-range ballistic missiles. Perhaps more striking is that this took place just one month after that historic meeting between President Trump and North Korean leader Kim Jong-un on the demilitarized zone when the two leaders met with the South Korean president and made promises to start to organize bilateral working negotiations which seem to have not happened yet and seem to be behind the promised schedule that President Trump offered.

[04:15:20] So some saber-rattling coming from the North Koreans. After they launched missiles last week, they said this was a warning to the South Koreans. They seem to be unhappy about the possibility of another round of annual bilateral U.S.-South Korean military exercises that are anticipated. And perhaps the fact, military analysts say, that South Korea is acquiring F-35A U.S.-made stealth fighters.

All of this going to show that despite the Trump diplomacy with Pyongyang, North Korea showing it can still make trouble and still be dangerous in the region Christine and Boris.

ROMANS: Yes. We'll see what the president -- if the president has anything to tweet or say about this. In the past he has downplayed events like this.

Ivan Watson, thank you so much.

SANCHEZ: Police believe the gunman who killed three people at the Garlic Festival in Gilroy, California, acted alone. Investigators are still hard at work at the crime scene. The area is so vast, it could take up to five more days to process it. More than 40 law enforcement personnel are still on site doing 3D mapping of the property.

CNN law enforcement analyst Josh Campbell has more.

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JOSH CAMPBELL, CNN LAW ENFORCEMENT ANALYST: Christine and Boris, we're learning new details into the investigation of the mass shooting here in Gilroy, California, on Sunday, that took the life of three and injured 12. In an update from authorities, police providing new information on early reports that there was possibly a second shooter or accomplice of the 19-year-old local resident who arrived at the family-friendly festival and opened fire.

Police telling us that more and more, their investigation leading them to believe that there was not a second shooter or accomplice. This was based on both the review of the crime scene itself, as well as the ability of the police to track the movements of the shooter on the day of the attack around town and gathering CCTV footage at various locations. Police telling us in each instance, the subject appears alone.

Nevertheless, the FBI agent in charge here telling us the bureau set up a special website, fbi.gov/Gilroy. They're imploring members of the public who are at this festival to submit any photos or videos on the day of the attack that investigators can use as part of their investigation. We're also learning new details about the weaponry that was used in this attack. We earlier reported on this AK-47-type rifle that the subject used.

Police telling us that in conducting a search of a vehicle belonging to the subject, they also recovered a shotgun that the subject purchased in Nevada and brought here to California. Lastly, we've been reporting on this Instagram account that was used by the suspect before the attack to discuss not only grievances about this festival but he also implored his followers to read a text, an historical book this can only be described as white supremacist literature.

Now, police telling us they're not yet able to say that he arrived at this festival intending to target minorities. However, that part of the investigation continues -- Christine and Boris.

(END VIDEOTAPE)

SANCHEZ: Josh Campbell, thanks for that.

Democratic Party lawsuit claiming the Trump campaign conspired with Russia and WikiLeaks to influence the 2016 election has been tossed out by a federal judge. The judge says Russia was the primary wrongdoer in the alleged plot to hack the DNC and a steel trove of emails and documents. He ruled the publication of the emails by WikiLeaks was protected by the First Amendment and was -- as was the praise and further dissemination of the emails by officials in the Trump campaign being an expression of the First Amendment.

President Trump hailed the decision on Twitter writing that it was yet another total and complete vindication and exoneration in. It's worth repeating that Robert Mueller made clear the president was not exonerated.

ROMANS: Right.

Right now, the Federal Reserve getting ready to do something today that it hasn't done in more than a decade, and what a difference a decade and a president makes. CNN Business, next.

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[04:23:56] ROMANS: All right. It is decision day for the Federal Reserve. We are at an unprecedented moment here, like all of the Trump presidency. By all indications, the Fed is about to cut interest rates in a strong economy after a decade of economic growth.

The last time the Fed cut rates, all the way back December, 2008, when the U.S. was in the depth of the financial crisis. At that moment, that quarter, GDP shrank 8.4 percent. The unemployment rate was 7.3 percent and rising fast, went all the way to 10 percent. The Dow on the day of that last rate cut was down 33 percent for the year, and the S&P was down 37 percent year to date.

That's what happened the last time the Fed felt it had to help the economy and cut rates. Compare that to today. GDP, a solid 2.1 percent. The jobless rate below 4 percent. Stocks near record highs. The S&P is up 20 percent this year.

Another big difference between then and now, a president insulting, cajoling, and rage tweeting the Fed and demanding lower interest rates.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I think the economy's so strong that nothing's going to stop us. [04:25:05] But the Fed could have made it a lot easier. I would like

to see a large cut, and I'd like to see immediately the quantitative tightening stop.

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ROMANS: The big question now, how big will this rate cut be? And will Jerome Powell, the Fed chief, what will he say about this afternoon when he announces the Fed move.

A 3-year-old boy in China miraculously survived a six-story plunge from a high rise building. The heart-stopping moments captured on video. The toddler is seen clinging to an apartment balcony.

Quick thinking neighbors grabbed two large blankets hoping to break his fall. The boy loses his grip and falls into the blankets. The child remarkably is unhurt.

SANCHEZ: That video made me tense. Very dramatic.

ROMANS: Yes.

SANCHEZ: The two high-profile progressive candidates on stage, Elizabeth Warren and Bernie Sanders, taking fire from moderates in the first CNN debate. We have highlights and a look ahead at tonight's second debate in Detroit, next.

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