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Early Start with John Berman and Zoraida Sambolin

Sanders Warns Democratic Convention Could Be "Messy"; Trump Versus Clinton: New Attacks; Obama Pushes Trade, Mends Old Wounds in Asia; Raptors Even Series with Cavaliers. Aired 5-5:30a ET

Aired May 24, 2016 - 05:00   ET

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


[05:00:00] ALISON KOSIK, CNN ANCHOR: Eighty percent said they had those firm disciplinarians in their life who sort of guided them to get that good education.

GEORGE HOWELL, CNN ANCHOR: It's not a bad thing.

KOSIK: It's not at all.

HOWELL: EARLY START continues right now.

(MUSIC)

KOSIK: The race for president getting messing. Bernie Sanders with a new warning about what could happen at the Democratic convention as Donald Trump and Hillary Clinton unleash stinging new attacks at each.

Good morning and welcome to EARLY START. I'm Alison Kosik.

HOWELL: I'm George Howell. Tuesday, May 24th. It is 5:00 a.m. on the East Coast.

And this morning, Bernie Sanders vowing to stay in the race even if it means a messy Democratic convention. Sanders defiance comes as Hillary Clinton looks right past her primary challenger, toward Donald Trump and toward the general election, pulling out of the debate in California which was planned for May. Sanders blasting Clinton's decision at a rally last night in Santa Monica.

CNN's Sunlen Serfaty was there.

(BEGIN VIDEOTAPE)

SUNLEN SERFATY, CNN CORRESPONDENT: George and Alison, as Hillary Clinton is increasingly her urgency a bit and calls for Democrats to unite before the general election, Bernie Sanders is digging in more. He is renewing his promise to take his fight all the way to the convention floor.

In an interview with "The Associated Press", he was asked about the potential for the Philadelphia convention to get messy, to which he replied, "So what? Democracy is messy." But then he added, he will, quote, "condemn and any all forms of violence." As he barnstorms the state of California, he seems to be taunting Hillary Clinton just a bit, saying he believes she is getting nervous at his chances going forward. Now, meantime, the Clinton campaign will not participate in the debate before the California primary in two weeks. A debate that Bernie Sanders has signed on for and he brought that up in the rally in Santa Monica.

SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: I was disturbed, but not surprised to hear a few hours ago that Secretary Clinton has backed out of the debate. I think it is a little bit insulting to the people of California, our largest state. That she is not prepared to have a discussion with me about how she will help the Californians address the major crises that we face.

SERFATY: And the Clinton campaign clearly turning their focus towards the general election again, says that they believe that their time right now is being better spent, campaigning and talking to voters and preparing for the general fight ahead -- George and Alison.

(END VIDEOTAPE)

KOSIK: All right. Our thanks to Sunlen Serfaty there.

The war between Hillary Clinton and Donald Trump intensifying as Trump delivers a low blow releasing an Instagram ad on Monday with the voices of two women who once accused Bill Clinton of sexual assault. Hillary Clinton battling back with a new ad of her own that uses Donald Trump's own words against him.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I sort of hope that happens because then people like me would go in and buy. If there is a bubble burst as they call it, you know, you could make a lot of money.

(END VIDEO CLIP)

HOWELL: The attacks just keep coming. So, to break all this down, this developments for the race, let's have some time for perspective.

KOSIK: Let's bring in politics reporter Eugene Scott in our Washington bureau.

Thanks for waking up with us this morning.

EUGENE SCOTT, CNN POLITICS REPORTER: Thanks for having me.

KOSIK: So, we are seeing Hillary Clinton and Donald Trump really getting ready for the general election. Already getting down and dirty with what you see with the attack ad with Hillary Clinton. We are hearing about Donald Trump's Instagram post, you know, which it is pretty low and dirty. You know, Donald Trump saying by posting this, saying this is relevant because of the way Hillary Clinton handled Bill Clinton's affairs. Sort of compounding them with what Trump has said attacking the women involved.

And then you've got Hillary Clinton going below the belt there, attacking where it hurts Trump the most, money.

SCOTT: Yes, this is what is expected. This is what was expected. We all had warnings that the race would go here, if it was between the two candidates. So, no one is really surprised.

What will be interesting is to see how voters respond to it. These issues are not new. We have seen these candidates elude to both of these issues previously in this race, but we are not going to see them back away from them. If anything, we're going to see more. It is just not surprising, especially considering the issues that Trump is having with women. He wants to put a dent in Clinton's credibility with women voters.

Whether or not it will work given his own past, his own situations with women and infidelity and misogyny in his words and his actions, that remains to be seen. I think more voters are actually concerned about the economy that their candidate's personal lives.

[05:05:06] KOSIK: And that's a good point you make. Donald Trump has his own infidelities to worry about.

HOWELL: You know, there's that old expression, those who live in glass houses shouldn't throw stones. You have to find out if that's something that Hillary Clinton will seize on. But again, at this point, not responding to these personal attacks.

Let's also talk about how Hillary Clinton is focusing on Donald Trump, saying that he is dangerous. Listen to this statement. This is one of her latest attacks on him.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Trump economics is a recipe for lower wages, fewer jobs, more debt. He could bankrupt America like he has bankrupted his companies. I mean ask yourself, how can anybody lose money running a casino? Really?

(END VIDEO CLIP)

HOWELL: So, will that work? You know, we talk about the economy being a major issue. Hillary Clinton focusing on the economy, focusing on the fact he is a businessman. That is something Trump trumpets. But her question is, was he that good of a businessman?

SCOTT: Well, it is certainly fair ground. I mean, what Donald Trump runs on his business success. That is where he has been most successful. But he hasn't been without flaw. I mean, he has repeated bankruptcies, professionally at least. We know he makes some of his products and his own clothing line overseas despite promising to ship jobs back here.

There are multiple concerns people would like him to address and see if he will be better for the economy as he professes to be.

KOSIK: You know, we're seeing more and more polls come out. One about the economy. Who do you trust more to handle the economy, 47 percent for Clinton, 46 percent for Trump. And then the tax return issue coming back again and again as well.

You are seeing these issues come back. Are they having an impact on the way Americans feel about the candidates? I'm talking about the issues here that really just keep on resonating.

SCOTT: Well, as you see, according to the polls, it depends on which Americans you are speaking with. Many Republicans are going to support Donald Trump whether or not he will release the tax returns. Continuing to hound on them doesn't help Hillary Clinton with people that she is trying to get to support her. They don't help with the people that are trying to support Donald Trump. And so, she has to decide where it is that she wants to spend most of her time with this issue.

KOSIK: You know, and yesterday, we did talk about one poll yesterday showing that Trump and Clinton are in a dead heat. But how much can we really rely on these polls so early? We're still many months out. I mean, you look at what happened in 2008. Michael Dukakis against H.W. Bush, you know, it looked like Dukakis was 10 points ahead and then it wound up being a blowout in favor. So, these polls are just that. They are polls.

HOWELL: They change like the weather.

KOSIK: They're far and advance. Do we have a read on what Americans are thinking? Is there really a way to have your finger on the pulse of what Americans are going to do come November?

SCOTT: No, what these polls tell us is where Americans are in the last week of May. And the election is in November, and anything can happen. We're going to see far more ads released have already seen. They can be more intense and worse.

So, anything could happen and we could see significant changes in the direction of the election that benefit or hurt both candidates.

HOWELL: Eugene, I also want to talk about Bernie Sanders and Hillary Clinton. Two things. First of all, Hillary Clinton backing out of this debate. Bernie Sanders really making hay about that and saying that, hey, when it comes to the convention, it could be messy. What is your thought there?

SCOTT: Yes. I mean, I think the one thing that is important to clarify is while he said it could be messy. He made it clear that he is not condoning or supporting violence. So, how people define messy is really important.

But no one is surprised. I mean, this campaign hasn't been clean and orderly. So, we definitely expect Bernie Sanders and his supporters to push for the values and interests they articulated so far through this campaign and put those on the table and keep them at the forefront at this convention.

HOWELL: I really like that "SNL" skit, the last one where Sanders is at the bar and Hillary Clinton is like, hey.

KOSIK: I love it.

SCOTT: Yes, that was funny.

KOSIK: All right. Eugene Scott, thank you for coming on this morning.

SCOTT: Thank you.

KOSIK: All right. Time for an early start on your money.

Corporate America is hoarding cash and most of it in accounts overseas. U.S. companies held $1.6 trillion last year. That is more than double the stockpile in 2007 right before the great recession. That's according to Moody's investor service.

Tech companies are leading the way. Names we know. Apple, Microsoft, Google, Cisco and Oracle, they've got the largest sums. They hold 30 percent or $504 billion.

[05:10:00] Financial companies were not included in the survey. But 72 percent of the cash pile is held overseas. Multinational companies argue that America's almost 40 percent corporate tax rate makes bringing the money back too expensive. And we know this is a huge campaign issue.

But you know what the reality is, the only way we will see a change in the tax code is through Congress. That's been battled for years and years. No matter what the candidates say, the work is going to have to come from Congress.

HOWELL: Donald Trump keeps beating the drum. It's one of his major bases.

KOSIK: He is able to change it single handedly. Good luck.

HOWELL: Will see how that works out?

Breaking news: just minutes ago, President Obama arriving in Ho Chi Minh City, pushing trade with Asia while trying to mend old wounds. We are live there next.

(COMMERCIAL BREAK)

KOSIK: Happening right now. President Obama has just landed in Ho Chi Minh City in southern Vietnam. It's more commonly known by Americans by its former name, Saigon. The president just finished a speech in the capitol of Vietnam, Hanoi.

[05:15:01] The message is stronger trade ties in the Far East.

At the same time, he tried to heal old wounds that divided the U.S. and Vietnam for decades.

CNN's Alexandra Field is following it for us in Ho Chi Minh City this morning.

So, we heard the president focused on security. He focused on economic ties. He also talked about human rights.

ALEXANDRA FIELD, CNN CORRESPONDENT: He did. That's been a focus of this trip because you've got a lot of human rights groups who are closely watching, closely scrutinizing every move here. They have been very vocal about Vietnam's human rights record, the jailing of dissidents, some stalled political reforms. And that is something that the president addressed.

He had a crowd of 2,000 people who came to see him in Hanoi. These were diplomats, government leaders, business people, even students. And the president talked what he called, you know, universal values. He pushed freedom rights and promoted human rights. He talked about freedom of expression and freedom of assembly as being shared values between Vietnam and the U.S. And he really wanted to foster that and hit on that.

He talked about the freedom of thought, saying that that's what fuels innovation, leads to job creation and boosts the economy. And this trip is really about shoring up economic cooperation between the two countries and also shoring cooperation in terms of security. So, it has a lot to do with the evolution of Vietnam and the U.S.'s relationship as we look to the future. But the president took the opportunity to also reflect on the past and specifically the progress that's been made between the two countries during this post-war era to heal the relationship.

Listen to what he said.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: At a time when many conflicts seem intractable, seem as if they will never end, we have shown that hearts can change and that a different future is possible when we refuse to be prisoners of the past. We've shown how peace can be better than war.

(END VIDEO CLIP)

FIELD: President Obama has now arrived in Ho Chi Minh City after leaving Hanoi. We know that he'll be touring the jade pagoda this afternoon. That's an important sight here in Ho Chi Minh City. Then, he'll be going on to visit an incubator and having another address at that point, and that, of course, ties into some of the themes we heard him talk about this morning in terms of fostering job growth and continued economic development here -- Alison.

KOSIK: All right. CNN's Alexandra Field, live from Ho Chi Minh City, thanks.

HOWELL: The TSA's top intelligence chief is out. The White House Oversight Committee announcing in a tweet, Kelly Hogan has been replaced. Hogan faced blistering criticism at a congressional hearing last month when three witnesses testifying he had no experience in the intelligence field, but somehow received a $90,000 bonus even though security lines at the nation's airports were getting worse. KOSIK: Secretary of Veterans Affairs Bob McDonald is under fire for

downplaying the patient times at V.A. hospitals. He told reporters on Monday, delays experienced by veterans seeking medical care are a lot like delays facing guests at Disneyland waiting to get on rides. McDonald says he'd rather instead satisfaction with the experience rather than time spent waiting. Several prominent Republicans, including Donald Trump, are blasting McDonald this morning.

HOWELL: Sometimes you say things and it doesn't come out quite right.

KOSIK: I'm thinking that's the case this time.

HOWELL: Yes, it must have been.

Well, the Cleveland Cavaliers, they were supposed to cruise into the NBA Finals, but King James' coronation, it is on hold, thanks to the surprising Toronto Raptors. Coy Wire has the bleacher report, next.

(COMMERCIAL BREAK)

[05:23:01] HOWELL: Welcome back.

The NFL is rejecting allegations that it tried to privately influence a study of the effects of concussions on its players.

KOSIK: Coy Wire has more in this morning's bleacher report.

Good morning.

COY WIRE, CNN SPORTS CORRESPONDENT: Good morning, Alison and George.

The past several years, the NFL has been strongly voicing their care and concern about possible link between football and the long term effects of brain trauma. They even gave a $30 million unrestricted gifts to the National Institute of Health to conduct a study.

To learn more about it, well, the congressional investigators say that the NFL stripped the NIH of $16 million from the grant because they didn't approve of one prominent brain expert who'd be working on the study, Robert Stern, who's openly criticized the league in the past over its handling of the issue. They wanted their own brain injury committee to oversee the project instead. The NFL denies trying to improperly influence the government study.

NBA eastern conference finals in Toronto. Raptors rejecting the Cavs again. Third quarter, Kevin Love gets smacked by Biyombo and then Biyombo saying no, no, no, like Mutumbo.

It is not easy winning in Toronto. They're 8-2 at home this post season. Raptors take game four, 105-99. Series tied two games a piece. Look out, game five tomorrow back in Cleveland.

The western conference finals game four tips off tonight. That's on TNT at 9:00. The defending champ Warriors back against the roof, they're down 2-1 to the OKC Thunder. Now, if you didn't know, now you know. East sports are here to stay.

The ELeague kicks off. It's a ten-week season where teams from around the world will use precision, timing, strategy and lightning quick hand/eye coordination to compete in a game called counterstrike. They are going for a prize of 1.2 million bucks.

This is a time-lapse video of the arena where the players compete. I was there yesterday, at Turner Studios in Atlanta. The matches are going to be broadcast nationally from TBS every Friday.

[05:25:03] It's hot you all. Look out. You watch it all online today, though. This action gets started on a platform called Twitch this afternoon.

Now, let's go to baseball, A's and Mariners. Check out the fan with the beard trying to catch the foul ball. He reaches up. He tries to catch it with his beer cup with the beer in it.

The young lady sitting next to him, George and Alison, she is like, hold up. Wait a minute. No, you didn't.

So, now, this is an awkward situation. She is giving him the side eye. The guy she's there with her is kind of giving him the side eye, too. But no one gives this young lady a napkin, a paper towel, to give her anything to help. She's definitely had a case of a Monday.

KOSIK: But she is definitely muttering under her breath what she thinks about him. Something tells me she needs to have a beer and just kind of accidentally trip and maybe spill it on him.

HOWELL: She is not happy.

WIRE: There you see the guy was pouring more beer in his cup.

KOSIK: Whatever.

(LAUGHTER)

HOWELL: Coy Wire, thank you.

WIRE: You're welcome.

KOSIK: Hillary Clinton and Donald with new attacks on each other as Sanders delivers a new warning about the Democratic convention. That's next.

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