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Early Start with John Berman and Zoraida Sambolin

Bush Questions Trump's Credentials; Trump Heads To Alabama; Trump: Birthright Citizenship Must End; GOP Candidates Sell Their Visions; South Korea Returns Fire Toward North Korea; Stocks Lower Around The World; Violence Grips St. Louis After Shooting; Battling Western Wildfires; At Least Ten Involved In Bangkok Bombing. Aired 5:30-6a ET

Aired August 20, 2015 - 05:30   ET

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

CHRISTINE ROMANS, CNN ANCHOR: Breaking overnight, protests erupt on the streets of St. Louis, a building set on fire, tear gas launched after a deadly officer involved shooting.

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

Let's begin in New Hampshire. Up first, two of the top Republican presidential contenders are holding dueling town hall events, Jeb Bush and Donald Trump, both in the key early voting state, each getting their fair share of tough questions.

Both also taking the chance to take shots at each other, did either do anything to increase support within the Republican Party? CNN political reporter, Sara Murray, has more from New Hampshire.

SARA MURRAY, CNN POLITICAL REPORTER: Good morning, Christine. Donald Trump held his first official town hall since becoming a presidential candidate here in Derry, New Hampshire last night.

It drew a big crowd, about 900 people packed into this venue to pepper him with questions and hundreds of others in an overflow room. The questions ran the gamut, from immigration to illegal drug use even to whether he has too much hubris to be president.

Now on the top of Donald Trump's agenda was slamming his rival, Jeb Bush. He went after him for being a low energy candidate and then common core. He even went after him for having a small crowd at a nearby town hall.

(BEGIN VIDEOTAPE)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Have I gotten under Jeb Bush's skin? I don't know. I will tell you this, you mentioned the word skin. He said one of the dumber things I've heard in politics when talking about Iraq.

That we, the United States, he said, have to show them that we have skin in the game in order to go into Iraq. We've lost $2 trillion, thousands of lives, wounded warriors who I love all over the place and he is talking about we have to show them we have skin in the game. JEB BUSH (R), 2016 PRESIDENTIAL CANDIDATE: You are talking about Trump, right? You can mention his name. He's the current frontrunner. He has done an amazing job to get to that point. We are a conservative party, aren't we, Republican Party.

I think what people are eventually going to vote for is a proven conservative leader that's done it. I've talked about it. It's actually done and I have a proven conservative record, consistent proven conservative record when no one was watching, long time proven conservative record.

Mr. Trump doesn't have a proven conservative record. He was a Democrat longer in the last decade than he was a Republican. He has given more money to Democrats than he has given to Republicans.

(END VIDEOTAPE)

MURRAY: Now Donald Trump's next stop will be in Alabama later this week. He gave us a little taste of what to expect saying they already have tens of thousands of RSVPs. A campaign aide says they are moving the venue to a football stadium. Back to you, Christine.

ROMANS: All right, Sara, thanks for that. Trump is not backing down from a controversial proposal to end birthright citizenship. He tells our Chris Cuomo that the 14th Amendment granting citizenship to any child born in the U.S. is open to legal interpretation.

(BEGIN VIDEOTAPE)

TRUMP: The 300,000 births this year illegals in our country. That means we picked up 300,000 people that will get Social Security. You have people on the border and in one day, they walk over and have a baby and now all of a sudden, we are supposed to pay.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": So the citizenship for those babies you would revoke it? Now and retroactively?

TRUMP: Number one, the 14th Amendment is very questionable as to whether or not somebody can come over and have a baby and immediately that baby is a citizen.

CUOMO: The court has pretty much -- this is a minority legal opinion.

TRUMP: There are many people that totally feel that amending is too big a deal. It will be two terms. I would be in my second term on my eighth year by that time assuming everything went smoothly because to amend the constitution --

CUOMO: It takes a long time.

TRUMP: I believe you can win it legally and in any event, the parents have to leave. If the parents have to leave, unless they are very bad people, they will take their baby.

CUOMO: The 75 percent of the country feels you should find a way to let people stay with conditions as opposed to kicking everybody out. TRUMP: These people, the really good ones, we have some great ones, we will try to expedite so they can come back legally. When you look at Baltimore and Chicago and the crime that's going on, you have some of these people who are illegal immigrants. They are illegal. They have come into the country. They are gang members. They are tough.

CUOMO: You know most of them come here to fight for the dream.

TRUMP: I will start building that wall soon. I will get them out. The first thing I'm doing is getting the bad ones out and they are gone and they are not coming back either.

(END VIDEOTAPE)

ROMANS: Trump and Bush not the only Republicans making their pitch voters. Chris Christie, Carly Fiorina, John Kasich, and Scott Walker, all of them are in New Hampshire as well, some of those events lasting late into the night. They are focusing on selling their own credentials.

(BEGIN VIDEOTAPE)

[05:35:08] GOVERNOR CHRIS CHRISTIE (R), PRESIDENTIAL CANDIDATE: You never wonder what I'm feeling. I'm going to show you. Third, you will never have to wonder what I'm willing to fight for because I'll fight for it. Fourth, you will never have to wonder how hard I'm willing to fight for it because you'll be able to see it with your own two eyes.

CARLY FIORINA (R), 2016 PRESIDENTIAL CANDIDATE: You will always know what I think. You will always know what I believe. You will never get a sanitized sound bite from me or bumper sticker rhetoric. I know what I believe. I know what I know.

I won't falter and I will not shy away from a fight, which is why I can win that general election because I'll land every punch we need to land.

JOHN KASICH (R), PRESIDENTIAL CANDIDATE: I have a record. When I talk, it is not what I'm going to do. It is what I have already done. This is not here's what's in theory will happen. I have been able to do it.

SCOTT WALKER (R), PRESIDENTIAL CANDIDATE: I'm not intimidated by anything. I'm not intimidated by protesters. I'm not intimated by big government union bosses. I'm not intimidated by Democrats. I'm not intimidated by my own party's establishment.

Because I took on the party and I'll take on them in Washington and anybody else who stands in the way of defending the American people.

(END VIDEOTAPE)

ROMANS: Jeb Bush, Carly Fiorina and Scott Walker remain in New Hampshire today for meet and greet, and town hall events. Donald Trump is off the campaign trail until tomorrow. Marco Rubio looking for support in Michigan, he will speak before the Detroit Economic Club about his plan to turn around struggling urban cities.

Also we are expecting him to unveil his proposals for tax reform. Reducing the top corporate tax rate from 35 percent to 25 percent and simplifying the tax code to just two tax brackets, 15 percent and 35 percent. Rick Santorum will be in Washington, D.C. to address an audience and take questions at the National Press Club.

An attorney for Hillary Clinton now confirming her personal server was wiped clean before it was turned over to the FBI. This acknowledgement comes in a letter to Senator Ron Johnson, chairman of the Homeland Security Committee.

Clinton's campaign also acknowledging there was information on the server now considered classified, but an important distinction that information wasn't classified at the time it was received.

It is according to the campaign, which is even pointing to a Fox News report to make its case. In one, the e-mails are marked sensitive but unclassified. In the other case, the material contains no marking.

The Clinton camp trying to keep its focus on 2016 and the possibility of an expanding field with calls growing for Joe Biden to enter the race. A spokesman for Clinton now says he would be a welcome addition.

(BEGIN VIDEO CLIP)

BRIAN FALKIN, SPOKESMAN FOR HILLARY CLINTON: Hillary Clinton herself and everybody affiliated with her campaign has deep respect and admiration for Vice President Joe Biden. There are a number of people on her campaign who actually worked for him directly.

So there is deep admiration and respect for him. He has more than earned the opportunity to take his time and make a decision and we are just going to continue to operate our campaign in the way that we always have, which is to presume that we will have a competitive race regardless of what the rest of the field looks like.

(END VIDEO CLIP)

ROMANS: Biden's advisors have told him to make a decision by October 1st.

South Korea returning fire on North Korea retaliation for an apparent rocket attack. A defense spokesman from Seoul tells CNN the South fired a few dozen rounds back toward the North. What is behind this sudden escalation?

I want to get to CNN's Kathy Novak live in Seoul with the very latest. We have seen skirmishes before, Kathy, but there is concern that they could spiral. You know, you want to be very careful with these situations, what is happening here? KATHY NOVAK, CNN CORRESPONDENT: Absolutely, Christine. Watching out the next move, the South Korean military is on high alert. It appears that what is happening is North Korea has targeted propaganda speakers. This is a part of a psychological warfare that South Korea restarted just in the past week or so.

That's because South Korea says that North Korea planted landmines on the South Korea side of the border, which injured two South Korean soldiers. It restarted this program of psychological warfare in retaliation.

This is the sort of thing that makes North Korea very angry. As we know the regime of Kim Jung-Un tightly controls all communications to its citizens and it absolutely hates it when other outside messages come in as we are seeing now through the speakers from South Korea.

And the other thing that's happening right now that is making North Korea very angry is the United States and South Korea are conducting joint military exercises. Now these are routine annual exercises, but it's another thing that we see infuriates the North Korean regime when they happen. We will keep an eye on it -- Christine.

ROMANS: Absolutely. Kathy Novak for us in Seoul. Thank you for that this morning.

Also breaking this morning, ISIS now claiming responsibility for a bombing overnight in Northern Cairo, a car bomb exploded near a state security building, 29 people are injured including six police officers. Egypt's Health Ministry said the driver of the car that exploded was picked up by a motorcycle and fled the scene.

[05:40:03] Time for an EARLY START on your money, Asian shares are lower. Shanghai down 3.4 percent, another big swing for China stocks amid major worries about China's economy. European and U.S. stock futures are lower too. Yesterday, the Dow dropped 162 points amid an oil meltdown. Oil is down again this morning. A growing number of analysts expected $30 oil and soon.

And there is new drama around the timing of an interest hike from the Federal Reserve. Check out this line in the minutes from the last fed meeting, "Most on the committee judged that the conditions for policy firming had not yet been achieved, but we're approaching that point." Translation, cliff hanger at the fed, it is not a guarantee the fed raises rates in September could come a little bit later.

A new study finds more women are starting their own businesses. There were nearly 10 million women-owned small businesses in the U.S. in 2012. A 22 percent increase from 2007. Now men still own more businesses, but women-owned businesses are growing at a rate four times faster. The report also found big gains in small business ownership among black and Hispanic women.

It's 41 minutes past the hour. Breaking news overnight, protesters facing off with police, set a building on fire, throw rocks and bricks and bottles after another officer-involved shooting in St. Louis. More on the other side. (COMMERCIAL BREAK)

[05:45:01] ROMANS: A tense and dangerous scene on the streets of St. Louis. Police confronting dozens of protesters, firing smoke and tear gas into the crowd, just hours after a fatal officer-involved shooting on Wednesday.

Authorities say the suspect, a black teenager, pointed a gun at officers as they executed a search warrant. St. Louis police chief says demonstrators ignored repeated calls to disperse. Police forced to shield themselves as rocks, bricks, and water bottles were thrown their way.

Nine people were arrested. Protesters set a vacant house on fire near the scene of that police shooting and burned an American flag.

Tragedy on the fire lines out west. Three firefighters killed battling a wildfire in Northern Washington State. Four others injured. Officials say the fire in the small town of Twisp exploded after residents were told to evacuate.

In Oregon, a wildfire burned 48,000 acres still raging out of control. The state's governor surveyed the damage in Grant County where dozens of homes have been lost and residents are dismayed.

(BEGIN VIDEO CLIP)

GOVERNOR KATE BROWN (D), OREGON: It is a devastation up there. It is horrible. My heart goes out to the families over the loss of their homes.

UNIDENTIFIED MALE: I have no faith in any of our government leaders. We need to do more. This is completely preventable.

(END VIDEO CLIP)

ROMANS: Some 200 active duty military personnel have been deployed to help fight wildfires in seven western states.

It's 46 minutes past the hour. Let's take a look at what is coming up on "NEW DAY." Chris Cuomo joins us now. Good morning, Chris.

CUOMO: How are you doing, Christine. We are going to have the latest on the story breaking overnight about this attack in Cairo, the group taking credit for it, why, what it means in terms of the state of affairs there and the fight on terrorism in general.

We will also take you through this town of two -- this story of two town halls. I wanted to say tale, I don't get it out. Jeb Bush was out last night so is Donald Trump, very different in their nature and in their complexion and in the reception both from people on the ground and in the media.

We will take you through both and as you know by now, we sat down with Donald Trump. We had a longer conversation with him to try to drill down a little bit into some of his positions. Why he believes these things and what would really happen and how he would lead even the pope came up, Christine.

I think that will be an interesting bit of perspective about how Donald Trump makes his case. No matter who it is coming at him with criticism.

ROMANS: All right, Chris Cuomo, can't wait to see that, thanks. Breaking overnight, police searching for at least ten people behind a deadly bombing in Bangkok. We are live with more information.

(COMMERCIAL BREAK)

[05:51:12]

ROMANS: Breaking overnight in Thailand. The police say this week's deadly attack on a shrine in Bangkok was not the work of a lone wolf. In fact, police say it must have taken at least 10 people to carry out the carnage. Officials are also saying it does not appear to be an act of international terrorism. How did they reach those conclusions?

I want to bring in CNN's Saima Mohsin live from Bangkok this morning. So they are really scrutinizing all of this video trying to see if there are more people are involved than just the one man in the yellow shirt who they saw put the backpack under a bench.

SAIMA MOHSIN, CNN CORRESPONDENT: Christine, since you and I spoke, I spoke to the police spokesman late last night. He told me, he came to the shrine to visit. He told me he believes that two men they identified on that CCTV footage, one man in a red shirt and one man in a white shirt were his accomplices.

Why is it they believe that? Well, looking at that footage, Christine, they can see these two men clearly standing up in front of him. Were they trying to hide him from the public's eye while he planted his bomb? Were they scouting out the location with him?

They do seem to arrive together and leave together in that footage. They are now, Christine, looking through CCTV, around the city and at the airport to see if they can see where these men went and did they meet any other people and who are their other accomplices.

Why do they say at least ten people involved? They say there must have been someone to help them put the bomb together. There must have been someone help them identify the location and they believe there must have been someone to help them make their getaway.

Of course, this is all right now working off the CCTV footage. They need more help. They want help from Interpol -- Christine.

ROMANS: All right, Saima Mohsin for us in Bangkok, thank you for that. Keep us posted on any new developments this morning. Thanks, Saima.

All right, 53 minutes past the hour. Travelers, do you want a seat assignment with your next ticket? Why you might have to pay for such luxury next.

(COMMERCIAL BREAK)

[05:57:19]

ROMANS: Good morning. Welcome back. I'm Christine Romans. Let's get an EARLY START on your money. U.S. stock futures are down after an ugly day yesterday. The Dow lost 162 points. There is new drama around the timing of the interest rate hike from the Federal Reserve.

Check out this line in the minutes from the last fed meeting. Most policy makers judge the conditions for policy firming had not yet been achieved, but we are approaching that point. Translation, cliff hanger at the fed. An interest rate hike could be happening in September, maybe not until December.

All right, want a seat assignment on Delta? It will cost you. Bare bones ticketing options are spreading beyond low cost carriers like Sprint and Allegiance. Delta is expanding its basic economy tickets. They are $20 to $40 cheaper than regular economy ticket. They don't come with a seat assignment until after check-in. Also this basic economy ticket, you're the last in the boarding line, the boarding group and you get no frequent flier miles.

The highest paying job is, drum roll please, surgeon. That's according to a brand new list from Career Cast. Surgeons made a median salary of $3 $350,000, and also in the top five psychiatrist, physician, corporate executive and dentist. Most of the jobs on this list are in health care, an industry expected to grow rapidly in coming years.

It's 58 minutes past the hour. The race for the president center stage in New Hampshire, Donald Trump and Jeb Bush hold dueling town hall events. "NEW DAY" starts now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: The night of dueling town halls in New Hampshire.

UNIDENTIFIED MALE: Donald Trump versus Jeb Bush.

TRUMP: I don't see how he is electable.

BUSH: Mr. Trump doesn't have a proven conservative record.

TRUMP: The only thing constant is Trump.

BUSH: He was a Democrat longer than a Republican.

CUOMO: He thinks Hillary Clinton has a better chance of becoming a convict than a winning candidate.

TRUMP: It's either criminal or incompetent neither is acceptable to be president.

UNIDENTIFIED MALE: Heated protests in St. Louis.

UNIDENTIFIED FEMALE: They are shooting on residential streets.

UNIDENTIFIED MALE: Glass bottles and bricks thrown at officers.

UNIDENTIFIED FEMALE: There's no one here.

ROMANS: Breaking this morning, ISIS moments ago claiming responsibility for a bomb detonated overnight in Cairo.

(END VIDEOTAPE)

CUOMO: Good morning. Welcome to your NEW DAY. It is Thursday, August 20th, 6:00 in the east.

Up first, a Republican battle royal, Donald Trump, Jeb Bush, sharpening their attacks on each other letting the verbal jabs fly at dueling town hall events. They were just miles from each other last night in New Hampshire, but they were a world away in terms of what they were saying.

ALISYN CAMEROTA, CNN ANCHOR: There was good stuff. Bush challenging Trump's conservative credentials and Trump calling Bush unelectable. Trump's surging poll numbers part of wide ranging conversation that he had with Chris.