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Early Start with John Berman and Zoraida Sambolin

Deadly Explosions Rock Warehouse in China; Donald Trump Surges in Iowa; FBI Picks Up Clinton Email Server; Former President Carter Says Cancer Has Spread; U.S. Launches First Manned Airstrikes from Turkey; China Devalues Yuan Third Straight Day. Aired 4:30-5a ET

Aired August 13, 2015 - 04:30   ET

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

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[04:30:34] CHRISTINE ROMANS, CNN ANCHOR: Death toll rises in a series of huge explosions. Dozens killed. Hundreds injured. Many still missing. The fire is still burning this morning. We are live.

Donald Trump on top in Iowa, expanding his lead in a new CNN poll.

Jimmy Carter announcing he has cancer. That cancer is spreading. Details about the former president's condition ahead.

All right. Welcome back to EARLY START. I'm Christine Romans. Thirty-one minutes past the hour. Nice to see you this morning.

Let's begin with this breaking news overnight. Explosions rocking a warehouse in northeast China, killing at least 44 people. Many of them firefighters. This disaster unfolding in the port city of Tianjin, hundreds more are injured, many critically, and dozens of firefighters are missing at this hour. These blasts at a facility that handles hazardous materials, knocked down doors and blew out windows for miles.

I want to get the latest from CNN's Will Ripley in the sprawling port city.

And, Will, you told us you are a full mile away from the blast site. But you can still see the damage right behind you.

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: More than a mile away from the blast site, Christine. And you can see what it did to this car here and the civic center behind it. It also disabled a nearby light rail station and has blown out nearly every window of many of these apartment blocks over here. And yet, the explosion itself, the smoke plume behind me all the way back there.

And now, just within the last few minutes, we've confirmed some new information that officials here in this city held a meeting, perhaps just days ago, about tightening the safety standards for the companies in the undeveloped port area where that explosion happened, tightening the safety standards because they were dealing with dangerous toxic chemicals, like the ones that were believed to have caught fire overnight, triggering a series of explosions that did this tremendous amount of damage.

You talk about the missing firefighters. Some 500-plus people in the hospitals around the city being treated. It's a very difficult time. Most of the people, certainly the people in this area, haven't even slept yet. Some of them haven't been able to return to their homes.

In addition to treating all of the injured, we have the death toll continuing to climb, almost 50 now reported to be dead, and again, many more missing. And they had to stop the firefighting efforts at the epicenter because the toxic fumes are too dangerous. They don't know what people are breathing in. You can even smell and taste the chemicals in the air where we are as well, Christine.

ROMANS: You know, it's interesting, Will, I think a lot of people around the world, they look at China economic miracle, just how much it has grown over the years. But this is one of the big concerns among Chinese residents, that there have been so much development so quickly and you don't necessarily have the safety infrastructure to protect the populace.

RIPLEY: Absolutely right, Christine. Industrial accidents have been a huge concern here in China for decades because the cheap labor and the cheap products that fueled this country's economic growth have resulted in extremely unsafe working conditions, not only in the factories. And we're told that this city, we know that this city is the center for industry and for commerce in China.

But even in other industries as well, remember 2002, 7,000 Chinese miners died in one year. The government as of late has been trying to crack down on this, trying to improve working conditions for the Chinese people who as their economy slows down are expecting to be paid more and they're expecting to be working in safer conditions. But to have what appears to be a horrific industrial accident creating a blast that more than a mile away could do this to a building could damage people's homes, people running outside with no shoes, walking over shards of glass.

It is a huge -- I hope don't want to use the word embarrassment -- but that is how the central government is going to look at it. They jammed our cell phones at times today. We had difficulty communicating. We had people trying to stop to film us in front of hospital, including some unformed officers.

This isn't the kind of image that China wants to present when they have a huge military parade coming up in just a matter of weeks in Beijing, which is a two-hour drive away from this city of 15 million people.

ROMANS: That's a really interesting story, and very important context about covering disasters of any story in China. That the Chinese government does try to really manage the message.

[04:35:00] Will Ripley, thank you for bringing it to us and we know you have a lot more reporting to do this morning. Thanks, Will.

Thirty-five minutes past the hour. New poll numbers have Donald Trump opening up a significant lead this

morning in Iowa. Despite or because of the controversy he provokes. The Republican billionaire, he tops the CNN poll at 22 percent among likely caucus goers. That's eight points ahead of his nearest rival.

CNN's Jeff Zeleny has more on that and on the Democratic contest from Washington.

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JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Good morning, Christine.

A week after the first Republican presidential debate, after all of the fallout cleared, Donald Trump remains squarely on top in the key state of Iowa which kicks off the 2016 contest early next year.

Our new CNN/ORC poll shows that Trump is leading the field at 22 percent. That's eight points higher than his closest rival Ben Carson, who also saw a big boost since the debate. He is now in second place at 14 percent. Wisconsin Governor Scott Walker had been the leader in Iowa, but now, he is in third place at 9 percent.

And take a listen to this -- Jeb Bush is tied at 5 percent with Senator Rand Paul and Senator Marco Rubio. That's assured challenge for him in Iowa.

But now on the Democratic side, Hillary Clinton has a commanding lead in the state. She's 19 percent higher than her closest rival Bernie Sanders. It's shaping up to be a busy few days of campaigning in Iowa. The Iowa state fair starts today. Most of the candidates will pass through in the coming days, including Hillary Clinton, Donald Trump and so many, many more.

Christine, you now how great the Iowa state is. It starts today and we'll be out there -- Christine.

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ROMANS: All right. Have fun. Don't eat too much. Thanks so much for that, Jeff Zeleny.

Hillary Clinton's private e-mail server in FBI hands this morning. A lawyer for the data services company that manages her private email system telling "The Washington Post", the FBI picked up the server used by Clinton when she was secretary of state late Wednesday afternoon. This as Clinton faces new attacks over her use of private email from Republican rivals Donald Trump and Jeb Bush.

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DONALD TRUMP (R), PRESIDENTIAL CANDIDATE (via telephone): I mean, what she did is a real problem for her. I don't know frankly that she'll be able to run because it just looks to me the whole e-mail thing is a very criminal situation. And it could cause problems for years to come. JEB BUSH (R), PRESIDENTIAL CANDIDATE: And you have Hillary Clinton

who is the secretary of state, dealing with confidential information with classified information thinking it was OK to use a private server, thinking that her server would be safer than the State Department's fire walls. We need a president that recognizes that there are threats in the 21st century that are dramatically different than the threats of 30 years ago.

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ROMANS: A new Monmouth University poll shows half of the voters believe the e-mails should be subject to a criminal probe, 38 percent say they believe Clinton used a private server because she had something to hide.

Jimmy Carter is battling cancer. America's 39th president had surgery to remove a mass from his liver earlier this month. Carter confirming doctors discovered cancer during that procedure. Cancer that he says has spread to other parts of his body.

More on the former president's condition and his prognosis this morning from CNN chief medical correspondent, Dr. Sanjay Gupta.

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DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, Christine, we're going to get some more details on what exactly this likely means for the former president. We are not sure exactly what type of cancer this is yet. We are hearing that a mass was removed from in and around his liver. This is in fact represents liver cancer and other organs in the area, include gall bladder and pancreas for example. It's going to be important details exactly where this cancer started from, how largely it is and we know that it spread. Where does it spread? Did it spread to lymph nodes? Did it spread to other organs outside the body?

All of these details are important, Christine, to try and figure out exactly what treatment he is likely to undergo and what we're hearing is that he is planning on undergoing treatment for this. So, that's an important detail.

Interestingly, Christine, you may know this, but he has a very strong family history of pancreatic cancer. Former President Carter does. His father died of pancreatic cancer. Every one of his siblings also died of pancreatic cancer and we understand his mother also developed pancreatic cancer.

Not entirely sure why, but it obviously appears a strong family history. That's going to be something that will be looked at obviously with regard to the former president as well. We understand he had been getting scans for screening purposes because of this family history up until recently, CT scans. But then he was getting blood tests, to try and figure was he developing any early signs.

It may have been a blood test that necessitated this operation that he had back on August 3rd. At that point, they removed the small mass from in and around his liver. They also determined that he had evidence of spread of this cancer as well.

Look, this is a tough cancer no matter how you look at it. No matter if he was even a much younger man. Certainly, at 90, the cancer is going to take its toll as will the treatment. But as more details come to us, we'll certainly bring them to you, Christine. Back to you for now.

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[04:40:00] ROMANS: He's been -- thanks, Sanjay -- he has been a very active guy in his post-presidential years. He adjusted his schedule. We certainly wish him all of the best.

Let's get an early start on your money.

China guiding its currency lower again for the third day in a row. China's devaluation of the yuan to support its own shaky economy roiling world markets. Slamming stocks around the world commodities, currencies, and complicating plans to raise the interest rates in the U.S.

The feeling this morning, though -- China's devaluation spree may be coming to an end.

Let's bring in business correspondent Alison Kosik for a look at how world markets are reacting.

They hope this is over.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: They really do. And a very different stock picture this morning than this time yesterday, because stocks are actually higher around the world right now.

Asian shares are up despite China devaluing the yuan. That's also driving stocks up in Europe and the stock futures here.

And that's because just a few hours ago, China's central bank came out to calm global fears over the yuan's plunge in recent days, saying it has no more plans to devalue the currency. China central bank is billing it as free market reform, but experts are saying it's all about making exports cheaper and a weaker yuan means a stronger dollar, which hurt U.S. exporters.

Also keeping our eye on crude oil, sitting above $43 barrel right now. Prices stabilize after a report showed a lower than expected supply in the U.S. But there's still a huge supply glut of oil output from OPEC climb to a record in July.

The national average for a gallon of gas today is sitting at $2.61. That's almost a dollar cheaper than this time last year. And guess what? Analysts are expecting, Christine, that we're going to see $2 on average by the end of the year.

ROMANS: Yes.

KOSIK: Yay. ROMANS: I was hearing by Halloween, I'll beat you. I beat by

Halloween.

KOSIK: I say December.

ROMANS: December, Halloween, all right. Let's shake on it. I bet you a fill-up of the minivan.

KOSIK: Deal.

ROMANS: All right. Thanks, Alison Kosik.

Fourteen minutes -- 41 minutes past the hour.

The U.S. launching new air strikes on ISIS from Turkey for the very first time. What this means for the war on terror. We are live.

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[04:45:40] ROMANS: The U.S. military launching its first manned air strikes against ISIS from Turkey. Just last month, the Turkish government agreed to allow the U.S.-led coalition to use its strategically critical bases to fight those extremists. That access means much shorter flight times for fighter jets targeting ISIS positions in Syria.

I want to go to CNN senior international correspondent Nick Paton Walsh. He's live from Turkey. He's not far from where those F-16s have been taking off.

Hi, Nick.

NICK PATON WALSH, CNN CORRESPONDENT: Christine, earlier this morning, it has been pretty active here. We have seen two F-16s taking off and landing actually here on the airstrip behind us. It is hard to tell if they are six F-16s the Americans have brought in here recently, or part of the Turkish contingent who's long been using this base. Also, plenty of cargo planes moving in and out here.

Now, the key thing about this base is it is a mere 15 minutes flight from here to Syria. So, that massively reduces the amount of time that pilots have to spend in the air. The amount of fuel they have to use up before they get to the target area to continue hitting ISIS, either long-term targets or targets of opportunity. It's a huge deal with Americans. That's what they got into the negotiations with Turkey, to be able to use here.

And we hear that yesterday when the strikes officially began, they were, in fact, hitting long sought after targets inside Syria itself. So, a significant development I think here for the U.S. campaign in terms of their capability. There may be more jets coming out of here and there are already drones using this area. And because of that reduced flight time, you simply have more time, of more pilots in the air, over the area that they are trying to particularly target, which raises the opportunities to hit ISIS as they try to move around, Christine. ROMANS: All right. Nick Paton Walsh for us near Incirlik, in Turkey,

thank you for that, Nick.

The head of the EPA calling the toxic spill in Colorado caused by her agency tragic and unfortunate. Gina McCarthy toured the banks of Animas River Wednesday. That's where EPA crews accidentally poured toxic chemicals into the Animas River during cleanup at an abandoned gold mine. She has now ordered a temporary halts to that work. Levels of contaminants in the water are now dropping. Colorado's governor says he expects the river to reopen soon.

In California, one wildfire burning out of control just as crews gained the upper hand on another. The Rocky Fire northwest of Sacramento is now 95 percent contained. Officials expect the blaze to be fully extinguished soon. But the other fire just to the south grew to 20 acres, burning through dry terrain. So, far it has destroyed 43 homes and scorched 70,000 acres of land.

If you are keeping score, it looks like Tom Brady came out on top of Roger Goodell. Judge Richard Berman asking NFL lawyer to provide direct evidence linking the Patriot quarter to deflated footballs in New England's AFC championship against Indianapolis in January. The league's lawyers finally admitted they don't have a smoking gun. Both sides are scheduled to return to court next week.

China guiding its currency lower again. What it means for your money here next.

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[04:52:28] ROMANS: All right. China's central bank doing its best to soothe markets this morning. Today marks the third day in a row the central bank guided its currency lower. The bank first lower the exchange rate for the yuan Tuesday, describing it as a one time fix. Since then, the value of the yuan twice more.

Now, officials say they've adjusted it enough and they expect depreciation is largely finished. Markets around the world like to hear that, quite frankly.

Anna Coren live in Hong Kong for us with the latest.

And, you know, Ana, for years, critics of China's very tight control of its currency and very tight control of its economy, for years, those critics have said, look, let the yuan flow freely. That would be fair. Free market reforms.

But, now, China says it is having free market reforms and critics say it is being done because it is best for their economy and not because it's best for everybody else.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yes, absolutely, Christine. That's right. They are saying we are opening it up so that obviously the yuan can be determined by those market forces rather than the central bank, which has had a very tight control, I should say, on Chinese financial policy. But, really, this is being perceived by those within the markets, within the financial sector as a sign the China's economy is really struggling. That it is weak, and it's hurting.

So, by devaluing the currency, this allows exports to be much more competitive, to be much more cheaper on the international stage. It also helps to stimulate the domestic economy as well, and this is something that China desperately needs to do. There's real question marks as to whether the government easing control of the slowdown, can manage it, because we know that they are hurting as far as construction goes, as financial services goes and as I say consumer spending.

So, China certainly portrays this image that, you know, growth is good and they are hoping for 7 percent this year. But perhaps the situation is a lot more different, Christine. And you'd have to think the way the markets have reacted over the past few days, particularly the first few days, with that abrupt devaluation, that people are no longer believing what's, you know, is coming out of China, the economic data.

[04:55:00] People are a lot more skeptical these days, Christine.

ROMANS: A lot more skeptical, but clearly signs of relief around the world that the Chinese in that press conference of central bank saying overnight that they are done for now. They think it has adjusted enough.

Anna Coren, thank you for that.

Hillary Clinton facing backlash on Twitter. Time to get an early start on your money, next.

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ROMANS: All right. Let's get an early start on your money.

China's devaluing its currency for the third day in a row, but also saying it's over. They think they've done it enough. World markets no longer freaking out.

Business correspondent Alison Kosik is here for that.

Hi.

KOSIK: It's that promise of inaction that's giving the markets a little relief this morning. Stocks are higher around the world at the moment. Asian shares closed up. That's also driving stocks up in Europe and stock futures here in the U.S. And that's because just a few hours ago, China central bank came out to calm global fears over the yuan's plunge in recent days, saying it has no more plans to devalue the currency.

A new basketball arena coming to Milwaukee, thanks to Republican presidential candidate Scott Walker. Walker who champions cutting taxes and cutting government spending on the campaign trail passed a bill that will give $250 million in taxpayer fund to build the arena. He said the Milwaukee Bucks would leave the city without a new arena, and that economic loss could be devastating.