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EARLY START

Standoff Ends with Six Officers Shot; Global Markets Jittery As Recession Fears Grow; Sources: Hickenlooper to End Presidential Bid; USWNT, U.S. Soccer Talks Break Down. Aired 5-5:30a ET

Aired August 15, 2019 - 05:00   ET

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


ALISON KOSIK, CNN ANCHOR: The launch comes as Amazon drew criticism overseas following the flat screen TVs, toys, and other items that were being dumped in France and Britain.

[05:00:06] The new program begins in September.

I would like to know, just how much stuff we're talking about. Amazon is not very big at giving numbers out, but I think there's a lot --

VICTOR BLACKWELL, CNN ANCHOR: Yes, it is a lot. Safe bet.

Our thanks to our international viewers for joining us. Enjoy the rest of your day. For U.S. viewers, EARLY START continues right now.

(MUSIC)

(BEGIN VIDEO CLIP)

POLICE OFFICER: Keep your hands up. Keep your hands up. Keep your hands up.

(END VIDEO CLIP)

BLACKWELL: Breaking overnight, a dramatic standoff ends with six officers shot in Philadelphia. More gun violence and a nation waiting for answers.

KOSIK: Stock selloff. Markets falling after a key indicator points to trouble on the horizon. What's in store today?

BLACKWELL: And breaking today. Another Democrat set to bow out of the 2020 race. We will tell you who.

Good morning. Welcome to EARLY START. I'm Victor Blackwell, in for Dave Briggs.

KOSIK: And good morning. I'm Alison Kosik. I'm sitting in for Christine Romans. It's Thursday, August 15th. It's 5:00 a.m. in the East.

(BEGIN VIDEO CLIP)

POLICE OFFICER: Keep your hands up. Keep your hands up. Keep your hands up.

(END VIDEO CLIP)

KOSIK: Breaking overnight, a dramatic end to a nearly-8-hour standoff with a gunman that left six Philadelphia police officers shot.

(BEGIN VIDEO CLIP)

(GUNSHOTS)

POLICE OFFICER: Get up here now. Get up here.

(END VIDEO CLIP)

KOSIK: You can just hear the chaos. Terrifying moments on the streets of Philadelphia's Tiago-Nicetown section. This all began when officers tried to serve a warrant.

I want you to listen to police scanners blaring with desperate calls for help.

(BEGIN VIDEO CLIP)

POLICE OFFICER: Guys, use caution, please.

POLICE OFFICER: Right now.

(GUNSHOTS)

(EXPLETIVE DELETED)

POLICE OFFICER: Cars stand by, cars stand by. Second assist, 3715, 150. Shots fired, shots fired inside.

POLICE OFFICER: Station to 180, shots still ringing out. Give me SWAT ASAP; long guns, ASAP. I've got officers shot. I've got officers shot, radio.

(INAUDIBLE)

(END VIDEO CLIP)

BLACKWELL: In the wake of the massacres in El Paso and Dayton, Philadelphia's mayor now wants to know when is "enough" enough.

(BEGIN VIDEO CLIP)

MAYOR JIM KENNEY, PHILADELPHIA, PENNSYLVANIA: It's aggravating, it's saddening, and it's just something that we need -- we need to do something about. And if the state and federal government don't want to -- don't want to stand up to the NRA and some other folks, then let us -- let us police ourselves.

Our officers deserve to be protected and they don't deserve to be shot at by a guy for hours with an unlimited supply of weapons and an unlimited supply of bullets. So, it's disgusting and we've got to do something about it. And I'm -- we need to do something about it quickly.

(END VIDEO CLIP)

BLACKWELL: Jason Carroll was in Philadelphia with more on the shooting -- Jason.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Alison, Victor, it was just around midnight -- that's when we started hearing the officers shouting out on a loudspeaker for the suspect to come out with his hands up. Minutes later, then we heard the command "Get on the ground, get on the ground." Shortly thereafter, police tweeted out that the suspect was in custody and the standoff was over.

This all began yesterday, just at about 4:30 in the afternoon. That's when the initial calls starting coming in.

Police had gone out to this row house trying to serve a search warrant. Narcotics officers responded and they were met by gunfire. Officers had to jump out of a second-story window to escape some of the gunfire. And then, for the next several hours, there was a standoff between the suspect and police.

At one point, two officers were held up on the second floor. They were able to escape by late evening with the help of SWAT.

Six officers were injured during the shooting. Those officers eventually released from the hospital.

A seventh officer actually was injured when he was trying to get to the scene. He was caught in some sort of a car accident. He's going to be OK as well.

Officers, throughout the evening, tried to negotiate and tried to speak with the suspect. They were met by gunfire. And then during the last few hours, there was -- they were met with silence as they kept shouting commands. But then, once again, finally just after midnight the standoff came to an end -- Alison, Victor.

(END VIDEOTAPE)

KOSIK: OK. Jason, thank you.

President Trump's disruption of global norms now are hitting the crown jewel, the economy. Markets tumbled after a warning signal that has an eerily accurate track record for predicting recessions.

The Dow plunged yesterday 800 points. It was the worst day of the year for trading. Asian markets, though, closed mostly higher, although you can see a one percent decline there in the Nikkei.

It looks U.S. futures are pointing to a higher open. Things could be a little bit more stabilized although they're trending a little lower as we speak.

So, Wednesday's selloff is the fourth biggest point drop in U.S. history. So, what happened here? Investors are concerned about the inverted yield curve. And in basic terms, that's when short-term bonds pay out better than long term ones.

[05:05:01] The 10-year yield dropped below the ten year for the first time since 2007. So, investors are becoming more and more concerned about slowing global growth. So, they are piling money into the safe haven investments and it's that action of pushing into bonds that is moving those yields lower and that is adding to the inverted curve that we saw yesterday. And analysts say the yield curve isn't the only thing that has them concerned.

(BEGIN VIDEO CLIP)

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: There's all kinds of things that have been leading up to this. Fed cutting rates simply didn't buoy the markets the way it used to. I think we are at the end of ten years of easy money.

(END VIDEO CLIP)

KOSIK: Now, Trump blamed, who else, but Fed Chief Jerome Powell, not his trade war with China for the selloff. He went on Twitter calling him, clueless, saying that the problem is the Fed.

We should note here that the yield curve nearly inverted two months ago and no one panicked. But now, investors reacted forcefully because I think they've had enough of President Trump's constantly waffling on the trade war.

BLACKWELL: So growth is slowing in the U.S. And there are warning signs around the world.

CNN's Hadas Gold is live in London with more on these global economic concerns.

Hadas, which other indicators are feeding these fears?

HADAS GOLD, CNN REPORTER, EUROPEAN POLITICS, MEDIA AND BUSINESS: Right, Victor, it's the trade war, obviously, in China, instability, populism, nationalism, and the whole sort of rejection or rethinking of globalization, which is causing investors to sort of rethink their investment. So, let's go through some of the list with what's going on around the world.

We obviously have China. Not only the trade wars and the instability in Hong Kong, but also China had its slowest growth of industrial output in 17 years. We have Germany, Europe's biggest economy, it shrank 0.1 percent. The eurozone barely grew, down in South America, Argentina is obviously having huge issues with the peso.

And, of course, here in the United Kingdom, we still have Brexit. We have no idea what's going to happen. Is there going to be a hard no deal Brexit? Will there be a deal? Businesses in the U.S. and Europe and honestly around the world are very concerned with what's going to happen, especially now with a new prime minister, Boris Johnson, who has said that they will leave the European Union on October 31st do or die, which is making a lot of people fear that a no deal scenario is even more likely.

And, listen, a recent poll found of Wall Street Journal economist on average saw 33.6 percent probability of recession. They say, listen, it's a mess. They see the central bank trying to prop up the economy and a lot of politicians and they are worried that they're going to pull it down again, Victor.

BLACKWELL: Hadas Gold for us in London -- Hadas, thanks.

KOSIK: Breaking news from the campaign trail. Democrat John Hickenlooper is ending his bid for president. Sources say the former Colorado governor will make a formal announcement today. He is set to be considering making a run for the Senate, something party leaders have urged him to do.

Hickenlooper struggled to break out of the crowded Democratic field. He was a moderate voice making his opposition to Democratic socialism central to his campaign. He was not likely to qualify though for the next round of debates in September.

Meantime, Beto O'Rourke plans to return to the trail today. He returned home to El Paso after the Walmart shooting. An aide says O'Rourke will have a refocused message.

BLACKWELL: Two Democratic congresswomen may not be allowed to visit Israel because of their support of a boycott movement against the Jewish state. CNN has learned there is a possibility that Rashida Tlaib and Ilhan Omar will not be allowed to make a visit in its current format. There's no clarity about what's wrong with the current format that's causing concern. Both congresswomen are expected to visit one of the holiest and most sensitive sites in Jerusalem. No comment yet from Omar or Tlaib, rejecting sitting members of Congress would certainly trigger a fight among Democrats already facing divisions on Israel.

KOSIK: None of us would be here without rape or incest. I know, it sounds crazy, but that's what Congressman Steve King has said in his latest bizarre theory.

(COMMERCIAL BREAK)

[05:13:40] BLACKWELL: Thirteen minutes after the hour.

Congressman Steve King seems to believe that many of us would not be alive today if not for rape and incest. Yes, he said that. In a video posted online by "The Des Moines Register", listen to the Iowa Republican offer this defense for not allowing exceptions for abortions.

(BEGIN VIDEO CLIP) REP. STEVE KING (R-IA): What if we went back through all the familiar try trees and just pulled those people out that were products of rape and incest? Would there be any population of the world left if we did that? Considering all the wars and all the rape and pillage that's taken place? And whatever happened to culture after society, I know I can't certify that, that I'm not a part of a product of that.

(END VIDEO CLIP)

BLACKWELL: Well, CNN reached out to King's office for a comment, but did not receive a response.

Congresswoman Liz Cheney of Wyoming, the number three House Republican, called the remarks appalling and bizarre and said King should resign.

He's a Republican, represents a district in Iowa. King is a polarizing figure on Capitol Hill, with a track record of making racist comments. You might remember, in January, he was stripped of his committee assignments after lamenting the fact that the term white supremacist is considered offensive.

KOSIK: There's an epidemic of gun violence in St. Louis. Police say seven children have been killed by gunfire this year. The latest victim, 7-year-old Xavier Usanga was fatally shot while playing with his sisters in their backyard.

[05:15:03] He was supposed to start school this week.

Xavier's mom says two men were shooting at each other in the street when her child became another innocent victim.

(BEGIN VIDEO CLIP)

DAWN USANGA, 7-YEAR-OLD-SON KILLED DURING SHOOTING: Take into consideration what you might -- what is the end result and if you're ready to take responsibility for that end result. Playing with a gun might be fun -- it might be something -- but do you really know at the end of the day if you take someone's life what that feels like?

(END VIDEO CLIP)

KOSIK: Police say they have arrested a suspect in connection with Xavier's shooting. The problem though goes beyond just guns. A dozen kids have been killed in St. Louis since May.

BLACKWELL: A warning from Microsoft. Update your Windows 10 operating system immediately. The company says there are two critical vulnerabilities that are potentially wormable. That means affected computers could spread viruses and malware without any action on your part.

Microsoft confirms there are potentially hundreds of millions of computers that are susceptible. Now, if you use, Windows 10, and you've enabled automatic updates, you're already protected. But if you update manually, search Windows updates to access the update tool. KOSIK: Late-night comedy in the era of Trump. Stephen Colbert is at a forefront in a rare interview, what the late night host told CNN's Anderson Cooper President Trump wants to live in a fantasy world, while trying to convince the American people it's the only world that exists. Colbert calls it "heresy against reality."

Anderson asked him about the seemingly nonstop chaos in Trump world.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN ANCHOR, "ANDERSON COOPER 360": The pace of it I do think -- I mean, I think about the people working in the White House. I think -- I think President Trump, you know, Dorothy Parker said those born to the storm find the calm very boring and I don't know why he was born to the storm, but emotionally, I think that chaos is something he's completely --

(CROSSTALK)

STEPHEN COLBERT, HOST, CBS "THE LATE SHOW WITH STEPHEN COLBERT": Oh, he creates his own storm.

COOPER: -- and he has lived his own life in. Right.

COLBERT: He creates his own storm. He takes a big bucket of sea water, throws it in his own face and goes, I'm a sea captain. We're going to ride it out, boys. Throw in the bucket, like he --

COOPER: But I was thinking about everybody around him, just how exhausting it must be to be in that orbit.

COLBERT: Every person -- like every person who leaves goes, God, it's crazy in there.

(END VIDEO CLIP)

KOSIK: I mean, you want to laugh but it's hard to laugh, right? It's too serious.

You can see Anderson's full interview with Stephen Colbert in a primetime special, tonight at 9:00 Eastern, right here on CNN.

BLACKWELL: A setback for the U.S. women's soccer team to fight for equal pay running into a roadblock. Andy Scholes has this morning's "Bleacher Report", next.

(COMMERCIAL BREAK)

[05:22:33] BLACKWELL: Talks between the U.S. Soccer Federation and the 28 members of the U.S. women's soccer team are suing for equal pay have broken down.

KOSIK: Andy Scholes has more in this morning's "Bleacher Report".

Good morning, Andy.

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Yes, good morning, guys.

You know, cries for equal pay for the women's team got even louder after they won the second consecutive World Cup title last month. But the U.S. Soccer Federation is not giving them what they want. Both sides confirming talks broke down yesterday. The two sides could now be heading to federal court.

In a statement, a spokesperson for the women's team said: We want all of our fans, sponsors, peers, everyone around the world and women everywhere to know we are undaunted and will eagerly look forward to a jury trial.

The U.S. Soccer Federation meanwhile said it's open to continuing negotiations in good faith, but added, unfortunately, instead of allowing mediation to proceed in a consider manner, plaintiffs' counsel took an aggressive and ultimately unproductive approach that follows months of presenting misleading information to the public in an effort to perpetuate confusion.

All right. NFL commissioner Roger Goodell and Jay-Z speaking with the media yesterday about their new partnership. Jay-Z's entertainment company Roc Nation will be an advisor to the NFL when it comes to picking acts for big events like the Super Bowl. They will work on social issues with the NFL's new program, the Inspired Change initiative.

But what about Colin Kaepernick? That was the question many has when this deal was announced. He's still out of the job, but Jay-Z says he spoke to Kaepernick about this new deal with the NFL but he would not reveal what was said.

(BEGIN VIDEO CLIP)

JAY-Z, ROC NATIONAL FOUNDER: I think that we forget that Colin's whole thing was to bring attention to social injustice, correct? So, in that case, right, this is a success, right? This is the next thing, right, because there's two parts of protesting. You go out and protest, and then the company or the individual say, I hear you. What do we do next?

(END VIDEO CLIP)

SCHOLES: The NFL Players Association is trying to prepare the players for a lockout after the 2020 season when the collective bargaining unit runs out. They had money saving suggestions such as try cooking at home instead of eating out as much. Find renters for your unoccupied homes or bedrooms. Consider selling a car you have not driven in the past six months. And consider selling clothes you have not worn in a year.

[05:25:05] Good tips for you, Victor and Alison.

KOSIK: I've done all of those things over the past year. I've done every one of those.

BLACKWELL: You know what's interesting about those. One is really practical. Cook at home. Brown bag it.

The other one, sell one of those cars you haven't driven in about six months.

SCHOLES: That you have sitting around. Yes.

BLACKWELL: All right. Andy Scholes, thanks.

SCHOLES: All right.

KOSIK: OK. Breaking overnight, a tense standoff ends with six police officers shot in Philadelphia. The gun violence epidemic rages on with no end in sight.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

POLICE OFFICER: Keep your hands up. Keep your hands up. Keep your hands up.

(END VIDEO CLIP)

KOSIK: Breaking overnight. A dramatic standoff ends with six police officers shot in Philadelphia. More gun violence in a nation waiting for answers.

BLACKWELL: Stocks sell off. Markets fall after a key indicator points to trouble on the horizon. What's in store today?

KOSIK: And breaking overnight, another Democrat set to bow out of the 2020 race. We're going to tell you who.

Good morning and welcome back to EARLY START. I'm Alison Kosik. I'm sitting in for Christine Romans.

END