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Early Start with John Berman and Zoraida Sambolin

Candidates Flock to Iowa State Fair; U.S. Embassy Opens in Cuba; China Explosions: Death Toll Rises; Drones Posing Danger in the Air. Aired 4:30-5a ET

Aired August 14, 2015 - 04:30   ET

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

CHRISTINE ROMANS, CNN ANCHOR: Pork chops and candidates, the race for president moving to the Iowa state fair.

[04:35:05] How a soap box could help them get votes, ahead.

In just hours, history and the American will unfold over Havana. The U.S. embassy in Cuba will reopen. The marines who took down the flag 50 years ago will raise it this morning.

Death tolls rising as the fire keeps burning from a series of deadly explosions. We are live.

Welcome back to EARLY START this Friday morning. I'm Christine Romans. It is 30 minutes past the hour.

Nice to see you this morning.

Let's start with politics. This morning, deep fat fried politics as presidential candidates descend on Des Moines for the Iowa state fair. It's an all but required early stop on the campaign trail. It's a chance for a face time with some of the 1 million Iowans attend and who may go on to the select the state's presidential nominees at the Iowa caucuses next February.

CNN's Jeff Zeleny is there with the latest.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Hey, Christine, and hello from the Iowa state fair.

For the next week and a half, it is Ground Zero in the presidential campaign. Jeb Bush is coming here to give a speech and meet with voters.

This is a key test for presidential candidates, one of those rites of passage for the summer where Republican candidates and Democratic candidates alike come and press the flesh, if you will. They give speeches, they answer questions, sometimes we have seen defining moments when voters challenge candidates on specific things.

Christine, we are looking forward to a big weekend here at the Iowa state fair. Donald Trump, Hillary Clinton will both be on the same grounds in the same proximity on Saturday. Donald Trump may bring his famous helicopter in. We'll see about that.

But, Christine, this really gives voters a chance to take a measure of candidates, to see how they interact with people, what their likability test is. If the old adage is who do you want to have a beer with is a test for presidential candidates, that's exactly what you can do here on the grounds for the Iowa fairgrounds.

So, for the next ten days, about the next week and a half, every single candidate, more than 17 or so on both sides, will be coming here to give speeches and meet these voters, Christine, six months before the Iowa caucuses. But over the next couple of days, this is a pretty defining time.

Sure wish you were here. We'd have a good corn dog and maybe even a pork chop on a stick -- Christine.

(END VIDEOTAPE)

ROMANS: Pork chop, not the corn dog, Jeff Zeleny. But thank you.

Jeb Bush hits the Iowa state fair in just a few hours. Yesterday, on the first day of the swing through the state, he defended his brother's decision to invade Iraq in 2003. He was at a college in Davenport, Iowa. Jeb Bush said the Obama administration inherited a fragile, but secure Iraq from George W. Bush in 2009. And then this administration allowed ISIS to emerge.

This administration allowed isis to emerge.

(BEGIN VIDEO CLIP)

MODERATOR: Had we not invaded Iraq in the first place, we wouldn't be dealing this Iraq ISIS problem?

JEB BUSH (R), PRESIDENTIAL CANDIDATE: Look, who knows? This is such a complicated hypothetical. I can't answer that. I'll tell you though that taking out Saddam Hussein turned out to be a good deal.

(END VIDEO CLIP)

ROMANS: The candidate polling second in Iowa suddenly on the defensive.

Retired neurosurgeon Ben Carson trying to square his past use of tissue from aborted fetuses for medical research with his current call for defunding Planned Parenthood.

(BEGIN VIDEO CLIP)

DR. BEN CARSON (R), PRESIDENTIAL CANDIDATE: To not use the tissue that is in the tissue bank regardless of where it comes from would be a foolish thing. That's a very different thing from killing babies, manipulating them, taking their tissues, selling them. That's a different thing. To try to equate those two things is absolutely ridiculous.

(END VIDEO CLIP)

ROMANS: Carly Fiorina barnstorming Iowa from her new perch as a top- tier candidate. The former Hewlett-Packard CEO highlighting her strength at a town hall as someone who can shakeup Washington and get things done.

(BEGIN VIDEO CLIP)

CARLY FIORINA (R), PRESIDENTIAL CANDIDATE: That means we have to challenge the status quo of Washington, something that the political class really hasn't been willing to do for a long time. And I think that's why you see so many people saying, I don't care if you have been in politics all your life. What I care about is, do you understand how to translate a good speech into real results?

(END VIDEO CLIP)

ROMANS: Fiorina setting out controversial position at that same town hall. She said parents should not be forced to get their children vaccinated. She later added that school districts can still bar unvaccinated children, though, from attending.

On the Democratic side, Hillary Clinton getting a boost from an Iowa political legend this morning. Former Senator Tom Harkin giving Clinton his highly coveted endorsement, now a major Democratic power broker in the state. Harkin writes in a "Des Moines Register" op-ed that Clinton shares his values on social and economic justice.

Clinton campaigning in Iowa today, pushing her plans for making higher education more affordable at a town hall in Dubuque. Then tonight, she crosses path with three other contenders. Bernie Sanders, Martin O'Malley and Lincoln Chafee, will be at a fund-raiser in Clear Lake called the Iowa Democratic Party Wing Ding.

Democratic contenders could soon have a formidable rival in the 2016 race. Vice President Joe Biden reportedly is spending his South Carolina beach vacation consulting with his family and supporters and weighing the idea of launching his own campaign.

[04:35:04] CNN White House correspondent Michelle Kosinski has that story.

(BEGIN VIDEOTAPE)

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, Christine.

Right, this has been one of the big mysteries of this race. Is Joe Biden running or not? Even people close to him, when you ask them, they've been saying that they don't know because he himself is still wrestling with that decision.

Well, now we know that while he has been on vacation this week with his wife on this tiny island off the coast of South Carolina, he has been doing some reaching out to people close to him on that possibility.

Other people are starting to weigh in now, too. Hillary Clinton said she will respect whatever decision he makes, although some supporters have very publicly questioned whether it might not be too late in the game, whether it's the best decision for him or not. Martin O'Malley just said he would welcome Biden's voice in the race.

And Donald Trump wasted no time in treating Biden as an opponent by slamming him.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I think I'd match up great. I'm a job producer. I have a great record. I haven't been involved in plagiarism. I think I would match up very well against Biden.

KOSINSKI: Well, he's referring to some issues Biden had back in law school, as well as during his 1988 campaign when he was accused of using somebody's line during a speech.

But you look at some new numbers. The CNN/ORC poll. It's pretty interesting, it puts Biden at number three of likely Iowa caucus goers with 12 percent of the support. He hasn't even announced yet.

Those close to him have said they feel sorry for him. He needs to make this decision during such a tough time personally with his son Beau dying just in May. They say he's still mourning his son and his son had urged him to take this chance and run with it, what could be his third and final chance to run for president.

But it looks like that decision now could be coming quite soon -- Christine.

(END VIDEOTAPE)

ROMANS: All right. Michelle Kosinski, thank you for that.

In just about six hours, history and the American flag will unfold in Havana. Secretary of State John Kerry heading to the island nation to raise the Stars and Stripes over the newly reopened embassy in Havana.

But as CNN's Jake Tapper reports, once the cheering and ceremonies end, a lot of difficult work begins.

(BEGIN VIDEOTAPE)

JAKE TAPPER, CNN ANCHOR: Buenos dias from Havana, Cuba, Christine.

It is a hugely enormous day in Cuban and American history. Later today, Secretary of State John Kerry will come down and he will raise the American flag at the U.S. embassy here. The first time that flag has been flown here since January, 1961 when President Dwight Eisenhower ended diplomatic relations between the countries. In fact, the three marines who lowered that flag are going to be here today for that ceremony.

It's a day full of excitement and history. It's also a day with some criticism. Some dissidents here in this country expressing real disappointment to us, talking about how the Obama administration gave up too much, didn't demand enough in terms of human rights and other concessions regarding freedom from the Cuban government. But no matter what you think about what's going to happen later today, it is a significant day. We will bring it all to you live later on -- Christine.

(END VIDEOTAPE)

ROMANS: Jake Tapper, thanks for that. We'll be watching.

To northern China now where hundreds of chemical specialists are at the site of that devastating explosions that left a port city in ruins. More than 1,000 firefighters are still dealing with hot spots. And executives of the hazardous chemical company that owns the warehouse where all of these happened, those executives are now in custody.

Will Ripley has been in Tianjin since that story broke. He joins us now with the latest.

And, Will, what you are explaining is the issue to help all of the people who are displaced, even as they're still fighting these hot spots.

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: Absolutely, Christine. And at times today, you can still see the plume of smoke rising over this resettlement center.

This is one of ten different locations around Tianjin where the government is working with non-profits has set up support, housing, supplies and even clothing for a lot of people, shoes. People who didn't have anything because they had to run out of their homes quickly during the explosions.

And there are new concerns here, new fears about chemical contamination and whether this is actually a much larger scale environmental disaster than perhaps even initially thought. But the reason for that is this facility that was the epicenter of this explosion was storing a massive amount and a large variety of different toxic chemicals. And, in fact, there were concerns among city officials that perhaps those chemicals were not stored safely.

This is a shipping port. They were put in the factory. Officials did not know what was housed inside.

[04:40:01] And now, there's fear that some of these chemicals have contaminated the ground water and there's rain in the forecast today. If it rains, there's a fear that the chemicals could have a reaction that could be potentially explosive and potentially actually release more toxins in the air.

So, a lot of concerns for people who are now living in these tents because they don't have anywhere else to go -- Christine.

ROMANS: All right. Thanks for that, Will Ripley. Great reporting in the last couple days. Thanks, Will.

Breaking news this morning, Greek lawmakers just approved the third bailout after a marathon night of debate. There are still some hurdles to overcome. Big business story here.

Thanks so much. Alison Kosik is here this morning for us, this Friday morning. Hi, Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning. You know, even with this Greek debt crisis, when isn't there a hurdle. Eurozone finance ministers, they still meet to give a green light for the loans. They're going to be meeting later today.

Now, Greek's Prime Minister Alexi Tsipras urged parliament to sign off on the deal, calling it unnecessary choice for the nation. The $95 billion agreement is going to help Greece avoid bankruptcy and secure its future in the E.U. It includes tax increases and spending cuts.

All right. Let's get a check of the markets. Asian shares are mixed. But European shares and U.S. stock futures are higher at the moment.

China allowed the value of its currency to rise against the dollar today by a fraction of a percentage point. So that ended three days of declines after a sudden devaluation.

And worries over China's economy, that's pushing oil prices lower. The price of crude sitting at a six-year low because of growth concerns or lack thereof. Booming supply. Less demand and more supply equals lower gas prices.

ROMANS: That's right. Lower gas prices, $2 a gallon we think are on deck for the fall.

KOSIK: They could be.

ROMANS: All right. Thanks, Alison.

KOSIK: Sure.

ROMANS: Troubling information in the war on ISIS. The terrorists believed to be using a new weapon in the deadly attacks. We'll tell you what it is, next.

(COMMERCIAL BREAK)

[04:45:28] ROMANS: A troubling new development in the war against ISIS. Pentagon officials believe the terrorist group is now using chemical weapons against Kurdish fighters in Iraq. It's a first indication ISIS has obtained or can manufacture the banned agents.

We get more from CNN's chief national security correspondent Jim Sciutto.

(BEGIN VIDEOTAPE) JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Well, Christine, the U.S. believes it has credible information that ISIS used this chemical agent mustard gas, extremely powerful, dates back to World War I, outlawed in fact after World War I.

Why do they find it credible? Basically, the symptoms of these Kurdish soldiers attacked with it in northern Iraq, both breathing difficulty after the attack, but also signs of blistering on their skin. Mustard gas is a blistering agent.

Two explanations for how ISIS have gotten this. Either they overran old Iraqi security caches or officials say it's also possible that they figured out how to make this themselves and weaponized it. Both of those explanations frankly are alarming. It would be a real concern.

U.S. officials say, listen, in terms of the battle field calculus, this is not a major game changer, but chemical weapons are a weapon of fear, much like terrorism, much like the headings that ISIS has been carrying out. That's a factor on the battle field.

But also this, you've heard some U.S. officials mention putting U.S. soldiers closer to the frontlines either as spotters for air strikes or possibly forward deployed advisers. This, of course, would have to be added to the dangers that they might face on the battle field certainly, part of that calculation.

It is regardless of the explanation and still they have to confirm this was mustard gas. If it is confirmed, this is a very alarming development -- Christine.

(END VIDEOTAPE)

ROMANS: Yes, it really is. All right. Jim Sciutto, thank you for that.

Connecticut's Supreme Court outlawed the death penalty in the state. The justices ruling it would be unconstitutional to execute any of the 11 death row inmates. The decision comes three years after Connecticut abolished death penalty while leaving existing death sentences intact. The justices listed, quote, "inherent racial biases" in death sentences as one of the factors leading to their decision.

St. Louis County authorities extending the state of emergency in Ferguson, Missouri through today. This as the teen shot and critically injured by police in the exchange of gunfire Sunday is recovering. Reportedly, he is in stable condition. Eighteen-year-old Tyrone Harris Jr. is accused at firing at police during the mostly peaceful protests, commemorating one year since the death of Michael Brown.

According to court records, detectives pursued and fired at Harris after they saw him shooting a gun during a firefight between two groups and after he shot at this unmarked car. Police say Harris was already out on bail on other charges. The head of the EPA announcing the agency is halting all field work in

mines. The woman who runs the EPA says the EPA is determined to never let what happened in Colorado take place again. A week ago, crews accidentally dumped contaminated waste water in the Animas River while working in an abandoned goldmine trying to seepage. Instead this, water stained orange by the toxic sludge, but officials say containment levels are going down. McCarthy says she expects congressional discussions on how to safely address other closed mines.

Danger in the sky. Pilots reporting dangerous close call was drones. New information after the break.

(COMMERCIAL BREAK)

ROMANS: The FAA's growing increasingly concerned about the number of drone sightings reported by pilots. Hundreds of close encounters so far this year, some of them at altitudes approaching 10,000 feet. Officials fearing it's only a matter of time before disaster strikes.

Let's get more from aviation correspondent Rene Marsh.

(BEGIN VIDEOTAPE)

RENE MARSH, CNN AVIATION CORRESPONDENT: Well, Christine, they are in the sky by the hundreds, flying dangerous close to passenger planes. The number of close calls reported have more than doubled, and now, the FAA and pilots are expressing concern.

So far this year, the FAA has received more than 650 drone sighting reports from pilots. Compare that to 238 in all of 2014. Now, despite FAA rules that forbid flying above 400 feet near commercial planes or near an airport, hundreds and hundreds of drone operators have gone rogue.

Now, part of the problem is anyone can buy one of these drones online or at the mall for a couple hundred dollars and they don't need any training or aviation experience. But drone lobbyists blame the FAA for the spike in close calls saying the agency needs to be more aggressive in going after these rogue operators.

We should point out that the FAA has said it could be catastrophic if one of the drones strikes an airplane engine or even a wind shield of a cockpit. No testing has been done to see how much damage a drone could actually do -- Christine.

(END VIDEOTAPE)

ROMANS: All right. Rene Marsh, thank you for that.

OK, good morning early bird overachievers. Hey, do you want to read like the president? We will look at Obama's beach reads, next.

(COMMERCIAL BREAK)

[04:58:12] ROMANS: All right. Let's get an early start on your money. European stocks are higher right now. So, are U.S. stock futures. Breaking news this morning, Greek lawmakers have just approved the country's bailout after a marathon night of debate.

Alison Kosik joins me now.

Alison, what's standing in the way of Greece and these emergency funds this morning?

KOSIK: Well, it's up to the Eurozone finance minister to give the green light for the loan. They're going to be meeting later today. Now, the $95 billion agreement is going to help Greece avoid bankruptcy and secure its future in the E.U. And what it includes is tax increases and spending cuts.

Also happening right now, oil prices are falling. The price of crude has fallen to a six-year low. The drop reflects the surplus of American oil, the devaluation of the Chinese Yuan, plus reports of higher Iranian oil production.

BOLDUAN: Two dollar gas coming.

KOSIK: Here it comes.

How do you plan to get to work this morning? If you're like most Americans, you are driving a car alone. That's according to this data by the Census Bureau.

More than 3/4 of Americans, they are driving to work by themselves. Less than 10 percent are car pooling. That number has been on the decline since 1980. About 3 percent of people actually walk to work. Isn't that nice?

Do you want to read like the president? President Obama, he's on vacation in Martha's Vineyard. And no vacation is complete without light reading.

What is on his list? Six books, and that's at two-week vacation. They include two Pulitzer Prize winners, "All the Light We Cannot See" and "The Sixth Extinction." Also, a George Washington biography, and then a memoir focused on race in America.

Do you think he will read all those in two weeks?

ROMANS: And six books. There are some big titles.

KOSIK: There are. I bet he skims them. He wants to hang out with his family, right?

ROMANS: I know. What about "People Magazine?" Is "People Magazine" on the list? When I'm on vacation, I need to unplug.

(CROSSTALK)

ROMANS: All right. Thanks, Alison.

EARLY START continues right now.

(MUSIC) ROMANS: The race for president taking center stage in Iowa. Moving in on the Hawkeye State to make their case to voters. Details ahead.