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Early Start with John Berman and Zoraida Sambolin

Final Democratic Debate Before Iowa; Iran Releases Americans in Prisoner Swap; Sanctions Lifted on Iran; Flint Water Crisis; Aired 4:30-5a ET

Aired January 18, 2016 - 04:29   ET

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

[04:31:26] JOHN BERMAN, CNN ANCHOR: Face-to-face for the very last time before actual votes are cast.

CHRISTINE ROMANS, CNN ANCHOR: Can you talk?

BERMAN: Luckily they spoke more clearly than I just did. Bernie Sanders, Hillary Clinton on stage in their final debate before Iowa. Who won? I lost clearly.

ROMANS: All right. Iran releasing three detained Americans in a prisoner swap as sanctions are lifted and the country enters the world marketplace. Live team coverage breaking down new details overnight.

Welcome back to EARLY START. I'm Christine Romans.

BERMAN: I'm John Berman. Thirty-one minutes past the hour right now. And it is two weeks from today when the first actual votes in the 2016 presidential contest will be cast in the great state of Iowa. Overnight, the final head-to-head face-off between the Democratic candidates. Hillary Clinton, Bernie Sanders and yes, Martin O'Malley. They went at each other in exchanges that at times got downright testy.

Clinton trying to fight back a surge from Sanders in the recent polls. She went after the Vermont senator on gun control, his new health care plan that he just released, and she also really just seemed to embrace President Obama every chance she had.

Let's get more now from senior Washington correspondent Jeff Zeleny.

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: John and Christine, a lively democratic debate on Sunday night in Charleston, South Carolina. The final debate before Democratic voters make their choices in this primary race.

Just two weeks from today, the Iowa caucuses, the New Hampshire primary just one week after that. So Bernie Sanders was trying to show that he is in contention for this fight. There is no doubt that he is locked in a close race with Hillary Clinton in Iowa, in New Hampshire, but he was on the defensive throughout the debate on health care, on guns.

But here are a couple of exchanges that caught my attention throughout the debate. Senator Sanders likes to point out that he believes Hillary Clinton is too close to Wall Street.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (D), PRESIDENTIAL CANDIDATE: I don't take money from big banks. I don't get personal speaking fees from Goldman Sachs. What I would do -- what I would do is understand that when you have three out of the four largest banks today bigger than they were when we bailed them out because they were too big to fail, when you have the six largest financial institutions having assets of 60 percent of the GDP of America.

(END VIDEO CLIP)

ZELENY: And by pointing out that Secretary Clinton receives speaking fees from Goldman Sachs, boy, that is music to the ears of Senator Sanders' supporters. He is trying to make the argument she is too close to Wall Street. But Secretary Clinton had an argument of her own to use against Bernie Sanders. It was all about President Obama. She was trying to embrace the president so tightly throughout the whole evening. She said that the reason that she is supporting her health care plan is to defend his legacy.

She had some strong words for Bernie Sanders about his own questionable support for President Obama.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: And President Obama has led our country out of the great recession. Senator Sanders called him weak, disappointing. He even, in 2011, publicly sought someone to run in a primary against President Obama.

Now I personally believe that President Obama's work to push through the Dodd-Frank -- the Dodd-Frank bill and then to sign it was one of the most important regulatory schemes we've had since the 1930s.

(END VIDEO CLIP)

ZELENY: Now of course Secretary Clinton is trying to keep some questions and concerns and doubts alive in the minds of voters, particularly from South Carolina, particularly African-American voters, by saying that Bernie Sanders did not support the president. Well, that is one of the strongest things you can say. Now Bernie Sanders came back and said, look, of course I supported this president. Of course I support President Obama.

[04:35:07] But those were just a couple of exchanges in the course of the two-hour debate. Of course, Martin O'Malley was also on stage there. He is struggling in the polls. So this is a tight contest between Bernie Sanders, Hillary Clinton, both of whom will be campaigning in Iowa and New Hampshire this week, two weeks before the voting begins -- John and Christine.

ROMANS: All right. Jeff Zeleny, thank you for that.

Let's break this all down, the debate, who won, who lost and why with CNN Politics reporter Eric Bradner. He is live for us from Charleston, South Carolina, where the debate was held.

Eric, nice to see you this morning. Let's start in health care here because this is -- this has been kind of a big heated point for the last 36 hours and then some between these two candidates. And Hillary Clinton attacking Bernie Sanders on his health care plan which he dropped basically just hours before this debate. He calls it Medicare for all. It would cost, what, John, a trillion --

BERMAN: Over a trillion a year.

ROMANS: A trillion a year. Let's listen to this exchange.

(BEGIN VIDEO CLIP)

CLINTON: I have to say I'm not sure whether we're talking about the plan you just introduced tonight or we're talking about the plan you introduced nine times in the Congress but the fact is we have the Affordable Care Act. That is one of the greatest accomplishments of President Obama, of the Democratic Party, and of our country.

Now there are things we can do to improve it, but to tear it up and start over again pushing our country back into that kind of a contentious debate, I think is the wrong direction.

(END VIDEO CLIP)

ROMANS: Point goes to who on that?

ERIC BRADNER, CNN POLITICS DIGITAL REPORTER: Probably Hillary Clinton in that case. But this is a little bit of a tricky issue for her because Democrats generally like the idea of Medicare for all. There is still certainly a segment of the Democratic Party that feels like Obamacare, the Affordable Care Act didn't go far enough. And so Sanders is really appealing to these people and making the case for a program that would truly be government run, but would end private insurance all together.

So Clinton is really sort of cloaking herself in President Obama in making her argument that was realistic, was feasible at this point is to implement the Affordable Care Act, maybe tweak it here and there, but not pursue some sort of another big remake of the American health care system which is really what Bernie Sanders is talking about here.

BERMAN: All right, Eric, let's go big picture before we drill back down into something specific here and put you on the spot. Did anything change? Is anything different this morning than it was last night? Did either candidate demonstratively help themselves?

BRADNER: Probably not. Hillary Clinton is a good debater. She had another good night. But at this point, the dynamic here that we're starting to see emerge is purity versus pragmatism. Bernie Sanders is the candidate for people who have a deep dissatisfaction with the political system as it is right now who might be more liberal than President Obama. And Hillary Clinton is the candidate for people who are looking for someone who can get things done within the current political climate. That is not really a great sort of dynamic for Hillary Clinton which

is why Bernie Sanders is surging a bit right now in Iowa and New Hampshire, but nothing really changed. Both candidates sort of demonstrated why they're well liked by the people who like them. But I'm not sure either really won over a big swath of new people.

BERMAN: It's interesting. You're essentially saying Hillary Clinton is owning the fact he is the candidate of not change, which again is a precarious place to be or it can be in an election depending on the mood of the electorate. Nevertheless, she is trying to poke holes in Bernie Sanders where she can. She kept up her attacks on his gun record. Listen to what he said there.

(BEGIN VIDEO CLIP)

SANDERS: I think Secretary Clinton knows that what she says is very disingenuous. I have a D-minus voting record from the NRA.

CLINTON: I have made it clear based on Senator Sanders' own record that he has voted with the NRA, with the gun lobby numerous times. He voted against the Brady Bill five times. He voted for what we call the Charleston loophole. He voted to let guns go on Amtrak, guns go into national parks. He voted against doing research to figure out how we can save lives.

(END VIDEO CLIP)

BERMAN: So, you know, she continues to harp on that issue. Does it leave a mark?

BRADNER: It does. This is the one issue that Hillary Clinton can actually get to Bernie Sanders' left. That's a hard thing to do. This is all about building a firewall beyond Iowa and New Hampshire for her.

Keep in mind, last night's debate happened a block away just around the corner from the Emanuel AME Church where last year's racially motivated shooting took place. And this is an issue that Hillary Clinton has identified as one that's important to the African-American community.

[04:40:10] Iowa and New Hampshire are very white and very liberal. South Carolina is not. She is betting that this is an issue that appeals to the broader Democratic electorate which could be really important as the race moves beyond those two early states. Especially if Sanders is able to win one or both of them.

ROMANS: All right. Eric Bradner in Charleston, South Carolina, for us. Bright and early this morning. Thank you, Eric.

BERMAN: All right, happening now, big news. Three Americans freed by Iran in a prisoner exchange. They are on their way home. They are in Germany right now. We have a live report from outside the hospital where they are being checked out right now. This all comes as sanctions are lifted. Iran gets ready to enter the world market. Live team coverage ahead. (COMMERCIAL BREAK)

ROMANS: Breaking overnight. Three Americans released as part of a prisoner swap with Iran have landed at a U.S. air base in Germany, putting them one step closer to home. They are "Washington Post" reporter Jason Rezaian, Marine veteran Amir Hekmati, and Christian pastor Saeed Abedini.

Less is known about two other men Iran has just released, Nosratollah Khosravi-Roodsari. His captivity had not been previously reported. And student Matthew Trevithick whose release was not technically part of this prisoner swap.

[04:45:03] For the very latest, I want to bring in senior international correspondent Frederik Pleitgen. He is live for us at Ramstein air base. Hi, Fred.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hi, Christine. And it certainly was an amazing past 24 to 36 hours that we've seen as all of this unfolded. Jason Rezaian, Amir Hekmati, Saeed Abedini as well as Jason's mother and wife were all flown yesterday from Tehran to Geneva. And then they took an American military plane to here to the Ramstein air base and afterwards were transported to the Landstuhl Medical Center which is what you see behind me.

It is one of America's best and biggest military hospitals outside of the U.S. World class center for medical care. And that is certainly something that these three men are going to be receiving now. Medical attention, both psychologically as well as physically. Of course you'll recall that especially in the case of Jason Rezaian, there was a lot of concern about his health, especially considering the fact that he had high blood pressure. Was he getting his medication? But keep in mind that the Evin prison in Tehran is notorious for being one of the toughest detention facilities even by Iranian standards.

And one of the things that the "Washington Post" said was that Jason Rezaian was subject to solitary confinement for a very, very long time. So certainly they will be getting a psychological evaluation as well.

One of the most important things, though, is that these three men are going to also be reunited with their loved ones, with their families here in Landstuhl. Some of them have already arrived here. Others are arriving throughout the course of the day. And certainly will be a very emotional time for these three men finally out of Iran and their family and friends who will be celebrating inside this medical facility -- Christine.

ROMANS: And we know, Fred, that two of his editors have been passionate advocates for him. They -- when word was starting to leak that perhaps there was a deal, they had already jumped on a plane and were headed to Germany to meet him.

Tell us a little bit, though, about the last moments, the drama on the tarmac. Secretary of state John Kerry having to really push to make sure that Jason Rezaian's mother and wife and all of them were on that plane.

PLEITGEN: There was always the sense, Christine, that all of this could go wrong at the last minute. Keep in mind that we found out about the fact that these three men had been released very late on Saturday night. And originally it was said that they would be put on a plane immediately and flown out toward Switzerland. But then that didn't happen. And apparently what went wrong was that Jason Rezaian's mother's name and his wife's name were not on the passenger manifest for those flight.

And so there was a lot of tension there with the Iranian authorities there at the airport. And it took a phone call from Secretary of State Kerry to the Iranian Foreign Minister Javad Zarif where he told him, listen, we have a deal, you have to make this work. And that's when Javad Zarif had four of his aides deployed to that airport to sort all of this out. And that's the reason why it took such a very long time.

But there was certainly a lot of drama, a lot of uncertainty. And also keep in mind that you had Iran involved, the U.S. involved and you had Switzerland that was involved as the intermediary which was the nation that actually then included these men up on a Swiss government plane, had doctors on it, their first stop then was Geneva.

ROMANS: All right. Fred Pleitgen, we know the U.S. Treasury Department levied some new sanctions based on some missile technology, some missile tests. They waited until after they knew those Americans were well on their way home.

Fred Pleitgen, thank you for that.

BERMAN: All right. This morning, as corporate offices open around the world, Iran is fully rejoining the global business community for the first time in decades. The international atomic watchdog agency has certified that Iran is taking steps to make it harder to develop a nuclear weapons. In exchange, Iran will now be able to sell its oil on the world markets, albeit for such a cheap price right now. It'll also be able to join the global banking network and have billions in assets unfrozen.

CNN international diplomatic editor Nic Robertson is joining us now live in Vienna with the latest. This is a big day, Nic, for the Iranian economy.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It's a huge day for the Iranian economy. For their businessmen, this is going to open up opportunities that they haven't seen in a long time. Certainly the expectation that they are going to put a lot of the funds, a lot of those frozen assets into modernizing their oil sector. Their oil and gas sector. But what they want to do is increase production despite the fact that they will be putting it on the market at the moment at least, at an almost recent all-time low.

However, I think analysts don't expect them to get up their output to the levels that they want to get into significantly in the short term. Why? Because their infrastructure is old, it's outdated, it's inefficient. But over a matter of years with the investment that they now have the capacity to put in the oil sector, they should be able to improve it and increase the output.

[04:50:01] The Iranian president, however, yesterday highlighted the airline sector as a sector that they want to put funds into as well. Iran's domestic airline has a poor safety record. The Iranians have put that down to international sanctions that have prevented them getting the spare funds that they need. But they're not out of the woods yet. The U.N.'s nuclear watchdog, the chief of that, Yukiya Amano, is in Tehran today. He is expected to meet with the Iranian president despite the fact that Iran has made good on its commitment so far.

It is now going to face 24/7, 365 days a year monitoring on its equipment, things like a new gamma detection device will be installed on enrichment facilities to make sure that Iran keeps to its uranium enrichment guidelines or limits. There will be cameras monitoring equipment 24/1. That's what the U.N.'s nuclear watchdog will be doing with Iran. So if Iran transgresses on any of that going forward, then it could face the sort of slapping back on of more sanctions, John.

BERMAN: Interesting to see how that nation behaves in the coming days and weeks.

Nic Robertson for us in Vienna, thank you so much.

So much to discuss. Such a big day. Secretary of State John Kerry, he's going to be on CNN later this morning. I'm going to get a chance to speak to him about the nuclear deal, the freed prisoners. That's coming up on "NEW DAY" at 8:00 a.m.

ROMANS: All right. Three Americans have gone missing in Iraq. There are unconfirmed reports they were kidnapped by gunmen, taken from their Baghdad neighborhood. It is believed they are contractors described by authorities as Iraqis who became American citizens. The State Department says it is working with Iraqi authorities to locate those missing Americans.

BERMAN: ISIS seems to be on a rampage in Syria. The terrorists kidnapped more than 400 civilians this weekend in a new ground offensive in the eastern city of Deir ez-Zor. Many of the abducted have been described as women and children. At least 135 others were killed including 50 Syrian regime troops. More than 40 ISIS fighters died in the fighting which apparently is still ongoing.

ROMANS: All right. Time for an EARLY START on your money this Monday morning. You know the market is closed today for the Martin Luther King Jr. Day. The global markets, though, are trading. And we're seeing small gains in Europe. Asia finished mixed. That's good.

(LAUGHTER)

ROMANS: That's good. We're also watching crude oil this morning as prices dive below $29 a barrel. The first time we have seen that level since 2003. Crude oil prices are crashing from more than $100 a barrel in mid-2014 to less than $30. Iran's return to the global markets is driving the drop right now. With sanctions lifted the OPEC member nation will begin exporting oil. There are new concerns that big U.S. banks will lose millions from oil's plunge due to outstanding loans for expensive oil and gas drilling projects. And some of the forecast this morning with Iran on the market $20 oil is here very quickly.

Wells Fargo and JPMorgan Chase have already set aside hundreds of millions of dollars to cover potential losses because of a decline in oil. And what that means, John, for their investment.

BERMAN: All right.

ROMANS: Elon Musk's Space-X launches a rocket in lower orbit. But could it stick the landing on a floating platform in the ocean? The video you don't want to miss next.

(COMMERCIAL BREAK)

[04:56:27] BERMAN: Flint, Michigan, getting help from an unexpected source during its ongoing water crisis. Cher. That's right. Cher is pitching in, donating nearly 200,000 bottles of water to Flint following the discovery of lead contamination in the drinking water.

The Michigan attorney general is investigating to determine if the crisis warrants criminal charges while residents want the governor to answer for it.

We get more from CNN's Sara Ganim.

SARA GANIM, CNN NATIONAL CORRESPONDENT: John and Christine, the people of Flint continue to demand answers for how this happened and why it took government officials so long to act. There was a rally here in Flint on Sunday where residents were alongside the Reverend Jesse Jackson demanding more accountability and the resignation of Governor Rick Snyder.

It was Snyder's administration that decided to switch the drinking water source over to the Flint River in 2014. And documents show that state officials knew that lead levels in the water were high long before they did anything about it.

Now remember, this had gone on for nearly two years before the National Guard came in with bottled water and filters for the residents. Now on Saturday, President Obama declared Flint's water situation a state of emergency but officials here are now also looking into something else. There's a possible link between a spike in Legionnaires' cases, a water-borne bacteria, and a rise in cases here in Flint.

Ten people died in the two years where they were drinking Flint River water. The cases nearly quadrupled from the years before. Because of the water borne bacteria, experts tell us they expected this might happen and now they're investigating whether or not it was linked to this water crisis -- John and Christine.

ROMANS: We spent a generation trying to get lead out of the air, out of the paint, they're drinking it in Flint.

Let's get an EARLY START on your money this morning. U.S. stock markets is closed today in observance of the Martin Luther King holiday. The markets in Europe are open. They are slightly lower right now. Stocks in Asia finished mixed overnight. You know, the losses come as oil drops below $29 a barrel.

The latest chapter in the modern-day space race has an explosive ending. Look at this. An unmanned Space-X rocket launched successfully Sunday, accomplished its primary goal of carrying a satellite into low orbit. But the secondary goal ended in a fiery explosion when the rocket attempted to land upright on a floating platform in the Pacific Ocean. Watch this.

Space-X CEO Elon Musk posted this video of the botched landing on Instagram. It shows the rocket setting down softly, but then toppling over and exploding on impact.

This was Sunday's launch. It's the fourth attempt by Elon Musk's Space-X which safely landed a rocket at sea. Both Space-X and the competitor Blue Origin have successfully landed rockets on land. Blue Origin is run by Amazon CEO Jeff Bezos.

The crash in oil prices is saving you money at the gas pumps. Check out the national average for a gallon of regular, now $1.89. The first reading below $1.90 since the depths of the recession in 2009. It's down $0.07 in just the past week. Drivers saved about $550 in 2015 because of those lower gas prices.

The states with the lowest averages right now, Oklahoma, drivers in Missouri, Alabama, Arkansas, all have prices below --

BERMAN: $1.60?

ROMANS: $1.70. And you know what, Greg Valliere on Friday told us that we will see $1 a gallon of gas. It will be a huge tax break. Actually a tax break and a stimulus for Americans this year.

BERMAN: Yes. And a 401(k) break, though, too. I mean, your stocks portfolio is going way down.

ROMANS: Your retirement is not going anywhere.

BERMAN: Yes.

ROMANS: But at least you're saving when you fill up your gas.

BERMAN: All right. EARLY START continues right now.

The big time clash on the debate stage. Hillary Clinton, Bernie Sanders, their final face-off before the first votes in Iowa --