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Early Start with John Berman and Zoraida Sambolin

Clinton Breaks with Obama over Trade Deal; Carson Gun Controversy; Russia Now Launching Cruise Missiles at Syria. Aired 4:30-5a ET

Aired October 08, 2015 - 04:30   ET

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


JOHN BERMAN, CNN ANCHOR: Russia now launching cruise missiles at Syria. This raising the stakes in the conflict as we are getting word this morning of a new ground assault from the Syrian regime.

[04:30:02] A live report just minutes away.

Welcome back to EARLY START, everyone. I'm John Berman.

MICHELLE KOSINSKI, CNN ANCHOR: I'm Michelle Kosinski, in for Christine Romans. It's half past the hour.

Hillary Clinton is splitting with the White House this morning over a trade deal she once pushed for as secretary of state. Clinton has come out against the Trans Pacific Partnership. A huge 12-nation deal known as TPP for short.

President Obama has been aggressively promoting the deal. Clinton did much the same as secretary of state, but that was before it had actually been negotiated. Now that the agreement has been finalized, Clinton tells PBS that it doesn't meet the high bar she had sought, creating American jobs, lifting wages and advancing national security.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: We've learned about trade agreements in the past for years. Sometimes they look great on paper. I know when President Obama came into office, he inherited a trade agreement with South Korea. I, along with other members of the cabinet, pushed hard to get a better agreement. We think we made improvements.

Now, looking back on it, it doesn't have the results we thought it would have in terms of access to the markets, more exports, et cetera.

JUDY WOODRUFF, PBS: So, are you saying that, as of today, this is not something you could support?

CLINTON: What I know about it as of today, I am not in favor of what I have learned about it.

(END VIDEO CLIP) KOSINSKI: Clinton is in Washington for a Congressional Hispanic Caucus event tonight. President Obama is speaking at the same awards dinner creating the possibility of an awkward moment if he and Clinton cross path.

BERMAN: The former secretary showing most Democrats in Congress and most of her Democratic rivals for president in opposing this trade deal. Bernie Sanders welcomed her change of heart calling the TPP, quote, "a continuation of disastrous trade policies that have led to the loss of millions of decent paying jobs."

Of course, Bernie Sanders will take Clinton on head to head in the Democratic presidential debate here on CNN next Tuesday night.

This is a crucial moment for Bernie Sanders. Why? Although he is leading in New Hampshire and closing in on many polls around the country, many people have not had a chance to look at him yet.

In Washington right now, Sanders talked about how he plans to approach the debate.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (D), PRESIDENTIAL CANDIDATE: you are looking at the candidate who does not go about attacking people personally. I just don't do that. But what I think democracy is about and what I think debates are about is, in fact, differentiating the differences of opinions that we have. That's full democracy. That's a good thing. And I look forward to a vigorous debate on the most important issues facing this country.

(END VIDEO CLIP)

BERMAN: A vigorous debate. You heard it right there. Let's say it again, Tuesday night, the very first Democratic presidential debate hosted by CNN and Facebook. Our coverage begins in Las Vegas at 8:30 p.m. Eastern Time.

KOSINSKI: I like the way you reveal it like it's a sporting event.

BERMAN: It's sports and then some.

KOSINSKI: To all that excitement.

And on the Republican side, controversy is swirling around Ben Carson this morning. Conservative media mogul Rupert Murdoch touting Carson as a prospective, quote, "real black president." That was after pointing to a "New York magazine" story with discontent of President Obama among African-Americans.

Carson himself taking new heat over his comment that the Oregon shooting victims should have attacked the gunman. This time it's the so-called lucky one who survived blasting Carson.

Matthew Downing tells CNN via Facebook, "I'm fairly upset he said that. No one can truly understand the actions you would take in a situation unless you lived it."

We are learning that Carson did in fact live through a similar situation and did not fight back. He told Sirius XM he was held at gun point at a Popeye's fried chicken restaurant in Baltimore.

(BEGIN VIDEO CLIP)

BEN CARSON (R), PRESIDENTIAL CANDIDATE: The guy comes in and puts the gun at my ribs. I just said, I believe you want the guy behind the counter --

HOST: In a calm way?

CARSON: In a calm way.

HOST: OK.

CARSON: He said, oh, OK.

(END VIDEO CLIP)

BERMAN: Donald Trump in Iowa. He is campaigning there. He has proclaimed himself a better politician than those in 2012 who surged atop of the polls but ultimately faded. Trump says he is the outsider who will hang in there.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: For three months, I have been a politician. For three months, we have been number one.

You know, they used to say, well, Michele Bachmann, nice woman. Herman Cain, good guy. But they were there for week. We have been there for now three months, more than three months. So, it's good.

(END VIDEO CLIP)

BERMAN: Polling in swing states shows him way out on top.

Rand Paul having some fun with Hillary Clinton's new book. Hillary Clinton sent all of the Republican candidates a signed copy of her book as a way to explain her accomplishments at secretary of state.

[04:35:01] So, for Rand Paul, you know, it may not solve his fund raising issues, but he put his book on eBay with the note, "Get your own signed copy of a great fiction book." As of this morning, bidding is up over $1,300.

KOSINSKI: We'll see if it goes up higher than that.

The race to replace House Speaker John Boehner just got more complicated. Majority Leader Kevin McCarthy is still the frontrunner with Utah's Jason Chaffetz, challenging him. Now, a group of hard line conservatives is rejecting McCarthy and throwing its support behind a little known Florida Congressman Daniel Webster. The House Freedom Caucus has 40 members. That is enough clout to deny McCarthy the majority he needs when the GOP votes behind close doors for a new speaker this afternoon.

Meanwhile, the outgoing speaker is stirring clear of the fray, but he's appearing on "The Tonight Show with Jimmy Fallon".

The Coast Guard suspending search and rescue efforts for the crew of El Faro that sank last week off the Bahamas during Hurricane Joaquin. The decision, a painful one for the families of the 33 people on board to accept.

(BEGIN VIDEO CLIP)

CLAUDIA SCHULTZ, HUSBAND ON MISSING EL FARO CARGO SHIP: We loved him.

I just want him back, even if it is just his body. I want him back.

UNIDENTIFIED FEMALE: We all do. Yes.

(END VIDEO CLIP)

KOSINSKI: A Navy salvage team has been called in to locate the ship which investigators believe could be miles beneath the Atlantic Ocean.

BERMAN: Developing this morning. The Syrian military claims it is launching a wide scale offensive against ISIS and other terror groups inside Syria. The Syrian army chief of staff is crediting Russian air strikes over the last few days with creating, quote, "military initiative" that Syria is now maintaining.

Russia's defense minister claimed overnight that it hit ISIS infrastructure targets in Syria. Cruise missiles launched. This as the United States says it will not cooperate with Russia. U.S. will not cooperate in the fight in Syria. The Pentagon confirms that two U.S. aircraft had to be diverted to keep a safe distance from Russia fighter jets in the same air space.

We're joined now by senior international correspondent Arwa Damon monitoring the developments next door in Istanbul.

And, Arwa, the news this morning, the Syrian regime claiming a wide scale offensive. This has been expected with the Russian airstrikes. But if true, it could change the situation on the ground.

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It most certainly could, and what we have been seeing the impact of these Russian air strikes being as a fairly at this stage decisive shift towards the Syrian regime when it comes to domination of the battlefield, even though it has not resulted in Syrian forces taking over concrete territory. It has resulted in very fierce clashes and perhaps in certain degree bolstered the morale of the Syrian military, overstretched and exhausted, having been fighting for years now against the rebel groups.

The Syrian army chief said that the Russian military air strikes diminish the fighting capacity of ISIS and other terrorist groups. This is very critical because NATO, United States and Turkey all dispute Russia claiming it is targeting ISIS and al Qaeda linked Nusra front. But the Syrian regime, which is the one that requested Russia's involvement does consider almost all, if not in their entirety, rebel groups to be terrorist organizations.

You also have, as we're mentioning there, the U.S. saying it will not cooperate with Russia because clearly the air missions that had to be aboard the United States is going to have to find some level of coordination. And as we are speaking right now, NATO defense ministers are holding a very critical meeting with NATO secretary- general saying prior to this meeting that NATO had establish a very high readiness task force, in fact, doubled the size of the NATO response force, insuring that NATO and all its allies including Turkey, underscore just how critical and dangerous the situation right now is -- John.

BERMAN: All right. Arwa Damon, a very critical situation right now and one that perhaps is changing on the ground with Russian troops and Syrian troops I should say perhaps on the move. Thanks, Arwa.

KOSINSKI: An apology from President Obama to the head of Doctors Without Borders. The president promised full White House cooperation with the investigators in a phone call with the group's president Joanne Liu. This following Saturday's deadly U.S. airstrike that killed 22 people at a Doctors Without Borders medical facility in Kunduz, Afghanistan.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: The president assured Dr. Liu that the Department of Defense investigation currently underway would provide a transparent, thorough and objective accounting of the facts and circumstances of the incident.

[[04:10:09] And if necessary, the president would implement changes that would make tragedies like this one less likely to occur in the future.

(END VIDEO CLIP)

KOSINSKI: So, the White House has characterized the attack on the hospital as a mistake. Despite receiving an apology, the president of Doctors Without Borders is still demanding an independent investigation.

BERMAN: Incredibly awkward, even embarrassing day head for Volkswagen as U.S. Chief Michael Horn will face lawmakers on Capitol Hill. The House Energy Committee is investigating the carmaker's attempt to essentially on emissions requirements. In Horne's prepared testimony, he will tell the committee he knew about an emission's noncompliance issue back in the spring of 2014. He will apologize for Volkswagen's use of software designed to basically cheat these emissions test, to work around the emission standards in the United States.

KOSINSKI: And it is time for an early start on your money.

Alison Kosik joins us this morning. ALISON KOSIK, CNN MONEY CORRESPONDENT: And good morning to you.

I'm keeping an eye on stocks. Asian shares down this morning. Stocks in China, though, bucking that trend, closing higher after a week-long holiday. European shares look upbeat as well. And exception to that, though, shares of Deutsche Bank are falling at the moment, about 2 percent. The warned war it's bracing for a $7 billion loss in the third quarter, and that's because of a big write-down at its investment bank.

We are watching stock futures in the U.S., they are down a bit. Stocks have been on quite a run over the past week. Yesterday, the Dow had another triple digit rally yesterday, closing up 122 points. You look at what happened in the past four trading days, the Dow actually gained 600 points.

But today kicks off earnings season after the bell actually and the bar is set low on how companies performed in the third quarter. Profits are expected to fallen. There are worries about China. There are worries of when and if the Fed will raise rates this year.

But those low expectations mean if you see these companies actually with an unexpected surprise, you could see a relief rally.

BERMAN: I've lived my life like that -- set low expectations so you always beat them.

KOSINSKI: Nice.

BERMAN: All right. Stepped up security doing little to stop attacks by Palestinians on Israelis. Those attacks now expanding beyond Jerusalem. We are live next.

(COMMERCIAL BREAK)

[04:46:00] KOSINSKI: Despite an Israeli security crackdown, a wave of violence spreading beyond Jerusalem and the West Bank. A new round of attacks by Palestinians now being reported in southern Israel and outside Tel Aviv. The violence escalating so rapidly, Prime Minister Benjamin Netanyahu canceled a trip to Germany.

Let's go live to Jerusalem and bring in CNN's Erin McLaughlin.

Look, Erin, it just seems to be getting worse by the day. we keep waiting for a let-up or something to solve at least in the near term. But that is just not happening, is it?

ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT: It's not, Michelle. Violence continued overnight with clashes in east Jerusalem, the West Bank, as well as Arab cities throughout Israel. This after what was a brutal day yesterday, at least three stabbings in central and southern Israel, as well as in the old city. We saw really these intense clashes in the West Bank. Israeli military appearing at times to be very heavy handed with the Palestinian's Palestine TV aired live pictures of two Palestinian men being beaten by members of the Israeli military, as well as members of an undercover unit. The number of injured throughout the West Bank, injured Palestinians

at the least 400 yesterday. So, people there bracing themselves for more violence.

Meanwhile, a key source of tension is the situation surrounding the holy site known to Muslims as the Noble Sanctuary, to Jews as the Temple Mount. Israel police reinstating restrictions at the site, as of Tuesday evening, Muslim men under the age of 50 not allowed to pray there, kind of restrictions that have angered many Muslims. Israelis say they are in place for security purposes.

And an official within the Israel government telling CNN that Israeli Prime Minister Benjamin Netanyahu has asked members of the Knesset, as well as government officials, to not visit the Temple Mount or Noble Sanctuary in a bid to deescalate things.

KOSINSKI: Concerning, disturbing to say the least. Thanks, Erin.

The FAA taking steps to try to keep rogue drones away from commercial jets. How the agency is taking new steps to prevent a potential disaster, next.

(COMMERCIAL BREAK)

[04:52:03] BERMAN: Cooler, drier air, fall air filtering into the east coast this weekend. Let's get to meteorologist Pedram Javaheri.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Michelle and John, good morning, guys.

Yes, we are watching the Great Lakes and parts of the upper Midwest as some showers beginning to filter in, and the reason I show you this, this morning is that this is a telltale sign of what is about to develop for parts of the eastern half of the country as cold air filters in.

But we go into the upper 70s today in Chicago, 10 degrees above normal -- look at Cincinnati, 81 degrees, 69 is what normal. In much of the country, about 10 degrees above average.

As the cold front comes in, the temperatures in Chicago drop into the 50s. St. Louis says good-bye to the 80s. The 60s come back. Even Friday afternoon in New York City, 76. By Sunday, we are talking 64.

So, a big time cooling trend. Widespread frost across New England over the next couple days. Something to note with that front, it could spark showers, the heaviest of which looked like Central Georgia will get it, but parts of South Carolina could get 1 inch or some of rainfall. And we know what is happening in this region, flood watches and warnings. A satellite perspective. You see the after of the tremendous amount of water that rolled over the region.

Last thing you want to see is rainfall. But again, at this point, it looks minimal. But still, some rain potentially on Saturday, guys.

KOSINSKI: Thanks, Pedram. Wow, that word frost. BERMAN: Not welcome.

KOSINSKI: The FAA is testing new technology to detect rogue drone flights near U.S. airports and other crowded public venues. The system is designed to track the drones and forced them to land if need. Officials say the growing number of unauthorized drones in the air poses a potential safety and security risk. You will have to put your drone back in the closet.

BERMAN: Shelve those drones.

Look at this. That is Chicago where tonight, this morning, there is joy. Cubs moving on in the playoffs. They beat the pirates, 4-0 in the NL wild card game. They were fantastic. It came down to Jake Arrieta. He gave up four hits. He was simply awesome.

There was a moment of tension there because of that. He got hit where? In the back side. It happened early as he hit two pirates batters. That was retaliation. Benches cleared.

Obviously, these teams were into the game. The first post season win since 2003. They will face the St. Louis Cardinals, one of the best rivalries in sports.

KOSINSKI: OK, then.

BERMAN: It's true. It is all happening. I didn't make that up.

KOSINSKI: I have just been doing my nails this whole time.

Did you get your new chip enabled credit card in the mail? Why these new cards might not be enough, though, to protect you from hackers, next.

(COMMERCIAL BREAK)

[04:59:00] KOSIK: Good morning. I'm Alison Kosik. Let's get an early start on your money.

U.S. stock futures are down right now, but look at what's been happening over the past week, stocks have actually been on a great run. Yesterday, the Dow had another triple digit rally, closing up 122 points. The Down gained more in than 600 points over the past four trading days. Earnings season kicking up today may put a wrench in a few things here. Profits overall are expected to fall.

Also today, we will get a look at the minutes of last month's Fed meeting. We are looking for any insight into the plan for the Fed is going to do on interest rates.

New chip enabled credit cards are not enough to protect consumers. That is the message from the world's biggest trade group to Congress. They say the new cards that we're getting in the mail these days, they're not going to stop breaches and force businesses to spend $35 billion on new technology. Now, chip-enabled cards are safer with just the magnetic strip, because they generate a new code for each transaction. But the use of a pin instead of signature, that would be more secure.

The problem is, John, it is not required yet to put in the pin.