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Iowa's Largest Newspaper Calls for Trump to End Campaign; Turkey Blames ISIS for Terror Attack; Ashley Madison Website Hack. Aired 6:30-7a ET

Aired July 21, 2015 - 06:30   ET

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

(COMMERCIAL BREAK)

[06:33:39] MICHAELA PEREIRA, CNN ANCHOR: Donald Trump widening his lead in a new ABC News/"Washington Post" national poll, 24 percent backing the billionaire candidate giving him a double digit lead over his closest rivals, Scott Walker and Jeb Bush. Pollsters, though, saw a plunge support for Trump on the last day of the poll, which came after he called into question Senator John McCain's status as a war her hero.

And now, "The Des Moines Register" is calling on Trump to drop out of the race because of his attacks on McCain. The newspaper Trump a, quote, "feckless blowhard".

ALISYN CAMEROTA, CNN ANCHOR: Well, overseas now, Turkey taking steps to secure the border with Syria, after an apparent suicide bombing that killed 30 people and injured more than 100. Turkish officials believe ISIS is behind the blast. They ripped through a rally organized to help rebuild a Kurdish city.

CNN's Arwa Damon is live in Turkey with all the latest for us -- Arwa.

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Alisyn.

We are at the scene where that vicious attack did take place. We just have to warn the viewers, the video they are about to see is incredibly graphic, very disturbing. We are choosing to broadcast it to show the terror of the attack. Let's listen in.

(VIDEO CLIP PLAYS)

[06:35:09] DAMON: Twenty-four hours later, this is the scene of the attack. These toys were placed here because the group that had gathered was not just talking about wanting to pay attention to the reconstruction effort in Kobani, they had also gathered boxes of donation for the children of that devastated city -- toys, schoolbooks, colorings, pens and pencils. The Turkish authorities at this stage have said that they have identified the suspects, but they are still investigating possible links. Yesterday, the government has said that they believed this was the work of is.

A lot of anger in Turkey. Yesterday, demonstrations met with tear gas in Istanbul, and that echoed by the crowd, feeling as if their government should have done more to protect them from the threats posed of ISIS -- Chris.

CHRIS CUOMO, CNN ANCHOR: All right. Thank you very much. I mean, that is a horrible scene, but a look at reality for the people there. Thank you for showing it to us.

So the trial is under way for North Carolina police officer who shot and killed a former Florida A&M football player. Prosecutors say Officer Randall Kerrick shot Jonathan Farrell in 2013 after he knocked on a woman's door looking for help after a car accident. The woman says she thought Farrell was trying to break in, so she called 911.

Farrell was unarmed. And Kerrick is charged with voluntary manslaughter. The defense is self-defense.

PEREIRA: Something quite a bit lighter. We have to show you this video from a wedding. This gal was a knockout at the wedding. Watch this bridesmaid when a newsman, well, just watch what happened. He gets ready to do a little back flip, but -- then to add insult to injury. Look what happens.

CUOMO: Down goes Frazier.

PEREIRA: Yes.

CAMEROTA: That's terrible.

PEREIRA: Kind of shoves her to the ground as he was trying to help her get back up. Baby, you might want to take it down.

CUOMO: One, he overdanced. That's always a problem.

PEREIRA: You think?

CUOMO: Usually connected to over-serving.

She's OK, which is why we are allowed to joke about this. But, he, looks like a good sized guy. He got good elevation and power thrusting through those.

CAMEROTA: Oh my God!

PEREIRA: I don't know that was choreographed originally.

CUOMO: The question is --

CAMEROTA: Don't ever do a back hand spring.

CUOMO: The question is, did they leave together after that.

(LAUGHTER)

PEREIRA: Probably not.

CAMEROTA: We know that was question.

All right. It is time for CNN's Money Now, chief business correspondent Christine Romans is in, our money segment.

Christine, tell us what stocks are doing.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: What a run for stocks, you guys. NASDAQ closed at a record high yesterday, the third in three days. NASDAQ is up 10 percent driven by strong corporate earnings. We're going to hear from Apple after the close today.

Stunning drop in gold prices, gold down again this morning. Yesterday, gold plunged to an almost five-year low. You know, gold is usually a safe haven for investors. But experts now expect prices will fall until at least the Federal Reserve raises interest rates and yes, they are expected to raise interest rates, maybe soon. That means higher rates for mortgages, car loans and, of course, credit cards -- guys.

CUOMO: Tell me when it happens. You keep warning me about it. It doesn't happen. Fire behind you and all things.

Thank you very much.

All right. So, the louder the criticism, the higher the poll numbers. Trump is surging, a double digit lead over his Republican rivals as of today. Many want to dismiss the man. But what is the mood behind him that the GOP ignores at its own peril. Answer ahead.

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(BEGIN VIDEO CLIP)

[06:42:53] DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I have respect for Senator McCain. I used to like him a lot. I supported him and I raised a lot of money for his campaign against President Obama. And, certainly, if there was a misunderstanding, I would totally take that back.

(END VIDEO CLIP)

CAMEROTA: All right. That was Donald Trump, basically walking back his controversial comment that Senator John McCain is not a war hero. As a new ABC News/"Washington Post" poll shows Trump is on top. He has 24 percent. He is ahead of every other major GOP contender, some by twice or three times as many.

So, what is behind Donald Trump's appeal?

Let's bring in Matt Schlapp. He's a former political director for George W. Bush. He is the chairman of the American Conservative Union.

Matt, thanks so much for being here.

So, answer that question, what is it that the respondents that give him 24 percent see in Trump?

MATT SCHLAPP, FORMER GEORGE W. BUSH POLITICAL DIRECTOR: Well, I think the more people in Washington, D.C., inside the Beltway criticize him and mock him. More people out in the country flock to him.

He is antiestablishment. He's iconoclastic. He's definitely outside the little click of Republicans in Washington.

And there's something that's very appealing to voters about that type of candidate.

CAMEROTA: And you say, in terms of his GOP rivals, that it's actually Ted Cruz who you believe is doing this right, in terms of not mocking Donald Trump.

But, really, what are you suggesting? What would you have Jeb Bush do?

SCHLAPP: Look, I think they each ought to be honest when they get the questions. If they have been offended by what Trump said, it's their right to criticize him. There's nothing wrong with that. But, you know, there is this feeling that somehow there are kind of a group of Washington, D.C. Republican insiders that usually have the biggest role in picking who the nominee.

And I think at this time in American politics, Republicans in the primaries across the country want to break that model. They really want -- grassroots people want to have their say in who the nominee is going to be. So, the fact the process is so wide open, against everybody, a voice and a roll.

[06:45:01] CAMEROTA: Let me up this poll again, the ABC News poll, because this is what's so striking. He's at 24 percent, about six times higher than he was just in May. Again, he is almost twice what Scott Walker is. He is twice what Jeb Bush is.

SCHLAPP: Right.

CAMEROTA: Now, what's interesting about the poll, it was a four-day poll. Three of the days were before he's McCain/POW comments. One day, we are told by the poll takers that the numbers went down after the McCain/POW comments.

So, what do you think that means? Will what he said about POWs and John McCain, even though he's tried walking it back a little bit, will that come to hurt him?

SCHLAPP: Well, first thing, Donald Trump did is he just picked a fight. He's saying real things, just as he's always done in his career. He understands the media well. So, these polls, he's obviously popped in the polls because he's gotten so much media coverage on the fact that he's saying, you know, he's saying things that get a lot of coverage and are somewhat controversial.

But these polls are going to change. So, I'd say you are right. I think they are going to ebb and flow. Donald Trump has been on an upward trajectory. He's had a rougher couple days in the media, because, you know, it's one thing to pick a fight with John McCain. That's totally legitimate.

John McCain has really strayed from his conservative political beliefs as he's been in the Senate. It's a whole other thing to pick a fight with military men and women. I don't think Donald Trump has any intent to have that fight. So, definitely has to walk that piece back. But picking a fight with John McCain is pretty smart.

CAMEROTA: But let's talk about the effect it has on military men and women, because Jeb Bush seized on this. He sent out a tweet saying, "Enough with the slanderous attacks at Senator John McCain and all our veterans, particularly POWs that earned our respect and admiration."

This is different that what Jeb Bush said in 2005 when there were attacks on John Kerry. Of course, you remember famously, there was a swift boat attack. Let me read what he said in January of 2005. At that time, he said, "As someone who truly understands the risk of standing up for something, I simply cannot express in words how much I value their willingness," meaning the swift boaters, "to stand-up against John Kerry."

So, does -- what do you think? Given there are two ways to play this, do you think all the other candidates should come out and take a shot at Donald Trump for taking a shot at POWs?

SCHLAPP: No, I really don't. The more these candidates -- well, look, they should do what they want. The more the candidates feel like they are going to marginalize him, it going to happen.

The more they jump on him, the better he does. That just plays into the idea that he's the outsider, he's the underdog taken on the insider. So, what they ought to do is take breath and realize polls will go up and down in this process. They ought to engage Donald Trump as they should all the other candidates on the issue that is matter. If they've got the winning arguments, they are going to win.

Now, for Jeb Bush, there is a benefit for this, which is the extent to which is Republican process looks like a brawl and looks chaotic, I think it plays into his major case, which is, look, get to me as soon as you can. Because eventually you think, you probably I'm going to get this nomination and I can nail it down quicker. So, he's going to play into that as well.

CAMEROTA: Matt Schlapp with advice for the GOP candidates -- thanks so much for being on NEW DAY.

SCHLAPP: Thanks so much.

CAMEROTA: Let's get to Michaela.

PEREIRA: All right. Have you heard of a website called AshleyMadison.com. If you are married, you soon may have a whole lot of explaining to do. The Website has been hacked and its 37 million users faced the threat of being exposed. So, what is the next move for Ashley Madison and their very nervous clientele? We'll discuss.

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[06:52:50] PEREIRA: All right. So, there's a website that encourages people to cheat on their spouses. It's in crisis mode this morning. Hackers have targeted AshleyMadison.com, and they're threatening now to expose the site's 37 million users -- 37 million. The hackers claim they will reveal everything from credit card information to fantasies, unless the website is shut down. What happens next?

Joining me to discuss is senior editor of tech news website Re/code, Arik Hesseldahl.

Good to have you here this morning bright and early to talk about hackers and Ashley Madison. Who knew we would be talking about this? But I suppose this is kind of new world order. No website is really safe from a hack.

ARIK HASSELDAHL, SENIOR EDITOR, RE/CODE: Never. Never. You should never guess that a website is completely safe from a hacker, especially when requesting personal information. Once you turn over payment details, there's a possibility it could be disclosed.

PEREIRA: Well, then, you ad this sort of unsavory darker side to it, and it seems like this kind of Website would be ripe for blackmail.

I actually want to read you a statement from the hackers. They called themselves impact team. This is what they posted on the Ashley Madison Parent Company, Avid Life Media. "Shutting down AM and EM will cost you, but non-compliance will cost you more. We will release all customer records, profiles with all the customers: secret sexual fantasies, nude pictures, and conversations, and matching credit card transactions, real names and addresses, employee documents and emails."

This is a far cry from, you know, threatening to, you know, put out information about people that we have seen in hacks past. This goes darker and deeper.

HASSELDAHL: It goes deep. It is a standard procedure in a lot of these hacks. We saw this in the Sony hack. We saw a lot of this information get disclosed.

(CROSSTALK)

HASSELDAHL: We broke that story. So, yes, what happens is the databases and spread sheets gets released and the point is to embarrass.

PEREIRA: OK. So, one of the thing that is these hackers say they are particularly upset about. It's interesting they have sort of this moral --

HASSELDAHL: It is kind of a crusade, yes, exactly.

PEREIRA: The crusade they are on. They are excited about this full delete feature on the Website that the company said they promised to delete all the user's personal information for $19.

[06:55:05] But that information doesn't actually get deleted.

HASSELDAHL: Yes, you have to wonder about a full delete. Anybody that says that data is going to be fully deleted, you always have to worry about back ups and things like that. You have to talk about data retention policies. Anytime you give up information about yourself, you have to wonder how the company is going to store it, how they're going to use it. You probably have to be very suspicious about it, because there's always extra back ups that people forget about.

PEREIRA: So, can we as -- everybody has a digital footprint now. If we delete a Facebook profile, if we delete, oh my goodness, an Ashley Madison profile, that information does not go away.

HASSELDAHL: You can't assume that it's going to be gone. You can't assume that it's going to be deleted in a way that you can really trust that it is actually gone. It's almost probably not.

PEREIRA: Are they highlights a problem here? I mean, as unsavory as the topic is, the idea of, you know, lack of faithfulness in a marriage, it is highlighting an issue here that we need to pay attention to. Is it not?

HASSELDAHL: Yes, absolutely. You have to think about when ever you are asked to participate in an online community, you have to ask yourself, what kind of information you are willing to give up about yourself, whether it's photographs or date of birth, or other things, sexual fantasies in this case. You know, that could give an anonymous e-mail address or anonymous identity. You could just want to go look around and be curious.

But at the same time, once you start handing over payment details, that's when things get dicey and you have to ask whether you are going to do it.

PEREIRA: Are we learning about these hackers? Is it a hacker? Is it possible this is a bluff and they don't have the information they say they have?

HASSELDAHL: There have been reports or comments on the story that some of the data began to show up on get hub, which is where programmers exchange codes. It's an information sharing site. So, I think what I think may happen next is we may be in a phase where the company ALM is forced to play a digital whack a mole with various attempts by the group or person to disclose this information. That happened in the Sony case as well.

PEREIRA: They have a new world order for us, isn't it?

HASSELDAHL: Yes, indeed.

PEREIRA: All right. Eric, thanks so much for joining us ,walking us to it all.

HASSELDAHL: You bet.

PEREIRA: What's your take? I'm sure you got an opinion. You can go to our NewDayCNN or Facebook, or you can also post your comment on Twitter.

Following a lot of news this morning. Let's get right to it.

(BEGIN VIDEOTAPE)

TRUMP: He's not a war hero.

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: This is the beginning of the end of Donald Trump.

TRUMP: If there was a misunderstanding, I would take it back.

UNIDENTIFIED MALE: Donald Trump, knock it off. You crossed the line.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: The unanimous approval of that argument will further our efforts from preventing Iran of getting a nuclear weapon.

UNIDENTIFIED MALE: We are aware of what Iran is doing elsewhere. Nobody is turning a blind eye.

UNIDENTIFIED FEMALE: Dozens dead in a suicide bombing believed to have been carried out by ISIS.

DAMON: People very angry, feeling as if they feel the government should have done more.

UNIDENTIFIED FEMALE: Ashleymadison.com helps arrange sex partners so marriage people can cheat.

UNIDENTIFIED MALE: Hackers are threatening to reveal the names of the site's customers.

UNIDENTIFIED MALE: Giving the potential to destroy marriages makes people more nervous.

(END VIDEOTAPE)

ANNOUNCER: This is NEW DAY with Chris Cuomo, Alisyn Camerota and Michaela Pereira.

CAMEROTA: Good morning, everyone. And welcome back to your NEW DAY.

One major newspaper calling for Donald Trump to end his campaign for the White House, of the voters sending a decidedly different message. This morning, in a Washington Post/ABC News poll, Trump enjoys a double digit lead over his closest rival.

CUOMO: "The Des Moines Register" is the paper we're talking about. It's one of the nation's most respected newspapers and one of the most politically important states. And it is demanding that Trump quit, calling the billionaire candidate, quote, "a feckless blow hard."

What does that mean? It's not good for him. That's for sure.

Let's bring in CNN chief congressional correspondent Dana Bash, traveling with Trump in South Carolina. I assume he does not care what "The Register" says.

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: We're going to certainly try to ask him that later this morning. But, you know, so far, his argument has been that his sometimes politically incorrect rhetoric has not really mattered when it came to appealing to a key part of the Republican base. The question is, whether how long it's going to last.

(BEGIN VIDEOTAPE)

BASH (voice-over): In a brutal editorial, Iowa's biggest newspaper, "The Des Moines Register" is demanding Donald Trump, quote, "pull the plug on his bloviating sideshow", calling him "a feckless blowhard" who can generate headlines, name recognition and polling numbers not by provoking thought, but by provoking outrage.

His Republican competitors agree.

GRAHAM: He's becoming a jackass.

TRUMP: I have respect for Senator McCain.

BASH: Trump is still not apologizing for criticizing John McCain's war service, but did come closer than before.

TRUMP: I supported him. I raised a lot of money for his campaign against President Obama. And, certainly, if there was a misunderstanding, I would totally take that back. But, hopefully, I said it correctly.

BASH: Even for the bombastic Trump, who appears to crave controversy, the bipartisan backlash from his weekend remarks about McCain's five years --