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Early Start with John Berman and Zoraida Sambolin
GOP Iowa Debate, Minus Donald Trump; Teacher Arrested in California Jail Escape; WHO: Zika Virus Now "Spreading Explosively". Aired 4:30-5a ET
Aired January 29, 2016 - 04:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[04:30:44] CHRISTINE ROMANS, CNN ANCHOR: All right. That's the political music. Donald Trump versus the GOP debate. Republicans running for president face off on the issue while the frontrunner holds his competing event. The big moments of the night and who made the best case to Iowa voters just days before the caucus -- before they caucus.
Welcome back to EARLY START. I'm Christine Romans.
BORIS SANCHEZ, CNN ANCHOR: And I'm Boris Sanchez.
Christine, thrilled to be here with you.
ROMANS: Thank you.
SANCHEZ: We're 30 minutes past the hour.
Overnight, Republicans running for president going after each other with gusto on the debate stage in Des Moines just four days before the Iowa caucuses. Conspicuous by his absence, the frontrunner Donald Trump, he was holding his own competing event, a benefit miles away.
But even without Trump, the sparks were flying. Seven Republican candidates spearing Democrats, each other and at times even the FOX moderators.
(BEGIN VIDEO CLIP)
CHRIS WALLACE, FOX NEWS MODERATOR: It's not my question you get a chance to respond to. It's his answer. You don't get 30 seconds to respond to me.
SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: Your question was you have disagreed --
WALLACE: You don't get 30 seconds to respond to me.
(CROSSTALK)
WALLACE: Sir, I know you like to argue about the rules, but we will conduct the debate.
SEN. RAND PAUL (R-KY), PRESIDENTIAL CANDIDATE: What is particularly insulting is he is the king of saying oh, you're for amnesty. Everybody's for amnesty except for Ted Cruz. But it's a falseness, and that's an authenticity problem.
SEN. MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: This is the lie that Ted's campaign has built on and Rand touched upon it, that he's the most conservative guy and everyone else is -- you know, everyone else is a RINO.
And then in the committee you said, I want to bring people out of the shadows. Now, you wan to trump Trump on immigration. But you can't -- we're not going to beat Hillary Clinton with someone who's willing to say or do anything to win an election.
JEB BUSH (R), PRESIDENTIAL CANDIDATE: I'm confused because he was the sponsor of the "gang of eight" bill that did require a bunch of thresholds, but ultimately allowed for citizenship over an extensive period of time.
RUBIO: You used to support a path to citizenship.
BUSH: So did you.
RUBIO: Well, but you change --
BUSH: Yes, so did you, Marco.
GOV. CHRIS CHRISTIE (R-NJ), PRESIDENTIAL CANDIDATE: I guarantee you one thing: she will never get within ten miles of the White House. The days for the Clintons in public housing are over.
RUBIO: I think Bernie Sanders is a good candidate for president -- of Sweden.
(END VIDEO CLIP)
SANCHEZ: No shortage of targets for the Republicans. CNN's Sara Murray was at the debate and she has the latest.
(BEGIN VIDEOTAPE)
SARA MURRAY, CNN POLITICAL REPORTER: Good morning, Boris and Christine.
Donald Trump's decision to skip the last Republican debate before Iowa left the moderators with a little more room to drill in to some of his Republican rivals, in particulars questioning Marco Rubio about his shifting position on immigration.
MEGYN KELLY, FOX NEWS MODERATOR: When you ran for Senate in 2010, you made clear that you opposed legalization and citizenship for illegal immigrants. You promised repeatedly that you would oppose it as a U.S. senator as well. Within two years of getting elected, you were co-sponsoring legislation to create a path to citizenship, in your words, amnesty. Haven't you already proven that you cannot be trusted on this issue?
RUBIO: No, because if you look at the quote and it's very specific, and it says blanket amnesty. I do not support blanket amnesty. I do not support amnesty.
KELLY: You said more than that, sir.
RUBIO: No, I said I do not support blanket legalization.
KELLY: You said earned path to citizenship is basically code for amnesty.
RUBIO: It was.
KELLY: You supported earned path to citizenship.
RUBIO: It absolutely has been. And at the time and the context to that was in 2009 and 2010.
MURRAY: Now, some candidates and their staffers say that Donald Trump's decision to skip this debate yielded a more substantive and at times even more respectful debate. But Rand Paul tells me it was also disdainful of Iowa voters.
PAUL: I think the disdain and arrogance that Trump showed by not coming, may turn off Iowa voters. They say a third of the voters are undecided. So, I think it was good to be here, make the argument. We also think that a lot of the youth vote will come to us, because we think that they don't want the government collecting all their phone records.
MURRAY: Now, whether Donald Trump's absence actually hurts him here in Iowa is an open question. A number of his risky moves put a back fire on almost any other candidate in the race have only sent his numbers higher. So, we'll see if that holds true this time.
Back to you, Boris and Christine.
(END VIDEOTAPE)
SANCHEZ: All right. Sara, thank you.
Let's sort through the winners and losers in the debate. To help us with that, CNN politics reporter Jeremy Diamond from our Washington bureau.
ROMANS: Good morning.
SANCHEZ: Jeremy, good morning to you.
JEREMY DIAMOND, CNN POLITICS REPORTER: Now, just the latest chapter in this battle between with Donald Trump and FOX News. Obviously, he wasn't at the debate last night. He said yesterday that FOX News apologized to him for putting out a press release earlier in the week of seemingly insulting.
And FOX came out with a statement saying that Trump was requesting money from them.
[04:35:03] Here's what FOX News put out.
ROMANS: Wow.
SANCHEZ: "Trump offered to appear at the debate upon the condition that FOX News contribute $5 million to his charities. We explained that was not possible and we could not engage in a quid pro quo, nor could any money change hands for any reason." That again coming from FOX News.
So, Jeremy, how much does this benefit Donald Trump to not be at the debate, but have his presence make such a statement?
DIAMOND: Yes. I mean, I think, listen, going into this, when Donald Trump on Tuesday announced in Marshalltown, Iowa, I was there that he was not going to be attend the debate. There were questions. There was kind of, like, you know, what's the fallout going to be? How is this going to affect him days before the Iowa caucuses to not make, you know, the last possible appearance in the debate where he could be judged side by side with other candidates? Would it be seen as him kind of running from a fight?
But I think last night, you know, it was clear he came out the winner in this, you know? He hosted a really successful event, raised $6 million for veterans causes, had two of the past Iowa caucus owners, also current presidential candidates at his side. All went well with him saying in interviews that FOX News apologized to him. FOX not really denying that, simply saying that Trump had put some conditions forward that weren't possible. And, you know, he wasn't able to make the debate.
You add to that the fact that he was still a presence at the stage casting a long shadow over the debate and all of that comes together to make it I think -- make Donald Trump I think the big winner of last night.
ROMANS: And it's so interesting. It really does fit in to the Donald Trump sort of brand. You know, it's all about money and transactions and business deals for him, right. And if he was going to show up, it was $5 million for his charities. He's threatened that before in other debates, you know, that he knows what of ratings and ad rates people get or he presumes to know. Ands he wants in on that action.
DIAMOND: It is fascinating how he pointed it out. He called it as if he was fighting for himself, like he would for the he said, you need someone who will fight for the country. It is fascinating how he kind of spun that and presented as, you know, this is how I'll be a good president.
ROMANS: The other part of the brand is the showbiz brand. Across town, he was noticing it was like the Academy Awards is what he said. Let's listen to that.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: We actually thought we would let them start and we wanted to be 15 minutes into the hour so by now they're all tuned in. Look at the cameras like the Academy Awards. This is like the Academy Awards. This is the Academy Awards.
We're actually told that we have more cameras than they do by quite a bit. So, that's --
(APPLAUSE)
(END VIDEO CLIP)
ROMANS: He is like the maestro. He's executive producing Des Moines.
DIAMOND: That is classic Donald Trump. That's actually a line that he's been puling out for the past two weeks or so. Look at this. It is like the Academy awards. He says they are all live. I don't know how he knows they are all live or not.
But, last night, they certainly were, right? You know, you had FOX News and then you had CNN and MSNBC carrying, you know, Donald Trump's even.
And, you know, I think it's interesting because some of the candidates on stage could have taken this moment to shine. Marco Rubio, Jeb Bush, you know, this was their moment to say we're out of Trump's shadow. We can show why we are really the best option to be the nominee and seriousness that the Republican party needs and deserves.
But Jeb Bush last night, he said he was missing Donald Trump kind of as a joke. But, you know, I think at some point, it seemed like he was. He did not have Trump to spar with, to be kind of at the center of attention. I think he was almost poorly served by that fact.
You know, Marco Rubio did well as he usually does, a smooth talker and, you know, showed his command of foreign policy issues. But he didn't really have a standout moment like he could with -- given Donald Trump's absence.
SANCHEZ: Jeremy, you mentioned Jeb Bush. He said he missed Trump, but he seemed energized. Trump labeled him as low energy. He seemed more relaxed. He was joking.
Is it too little too late for him to see this passion now for his campaign?
DIAMOND: That's the question, of course, right? I think that Donald Trump has kind of been able to define Jeb Bush very early in the campaign as low energy. You know, it is interesting, it is not what voters come away with when they meet Jeb Bush in person for the first time, you know?
A lot of voters who attend Jeb Bush town hall meetings where he has 150 or 200 people in the room, and a lot of times people come away saying, wow, I didn't expect so much out of him. They come away with a really positive impression. That's just because Donald Trump through the media airwaves has been able to define Jeb Bush as this low energy guy who's, you know, Jeb -- he was a Bushie, you know, all of those negative associations and it's sticking it seems.
[04:40:13] So, we'll have to see with the first results of voting what it looks for Jeb Bush.
ROMANS: It is interesting sparring with Jeb Bush and Marco Rubio. Two people who exchanged words about whether they ever supported a path to citizenship. And both of their positions have evolved on this, really evolved since 2009 and 2010, when you had senators, Marco Rubio among them, who were trying to work out some kind of immigration reform. That is just not -- when you look at the Trump phenomena, the appetite in the Donald Trump supporters for immigration reform seems nonexistent.
DIAMOND: Absolutely. It is interesting. Jeb Bush and Marco Rubio. Bush had a moment where you switched position on immigration. And I think that really helped Jeb Bush. I think it just helped to kind of drag Marco Rubio down with him.
You know, like, you know, if you're not going to make it -- if I'm not going to make it, neither are you. I don't know what either of them -- you know, Marco Rubio didn't seem as prepared as he should have been for the immigration questions. I think Ted Cruz was more prepared as far as handling, you know, the controversy over whether or not he changed his position on the path to citizenship. So, that was certainly interesting.
SANCHEZ: Now, Jeremy, left fast forward to Tuesday. We heard after Iowa, we may see candidates, especially the second stage candidates, the undercard candidates, drop out. Do you have any predictions, any idea who might call it quits after Monday?
DIAMOND: This is an election in which I have completely sworn off predictions. I'm done. We have been wrong at every turn, especially with Donald Trump. Not that I expect Donald Trump to drop out anytime soon.
But, no, I have zero predictions. Don't put me in that position.
ROMANS: I think all of those people in the campaigns, all of the well laid plans just --
SANCHEZ: You are not the only ones who has missed on predictions, Jeremy. We appreciate your insight and we'll see you in a half hour.
ROMANS: All right. Thanks for getting up early for us. Thank you. Talk to you soon.
Time for an EARLY START on your money right now. The last trading day of a terrible month for investors, whoa, put this one to bed, with some relief. Stock markets around the world on higher. They are surging after a surprise interest rate cut from the Bank of Japan.
It's a fitting end to the wild week. Check out gains and losses of the Dow's past five days. Look at that. Unbelievable. Loyal has been the driver and moving swiftly. Dow set to post its worst monthly performance since May of 2010.
An important reading on the health of the U.S. economy due at 8:30 a.m. Eastern Time. It's the first reading of the GDP in the fourth quarter. A forecast looking for a rise of a little bit less than 1 percent. That doesn't seem very good, right, for economic growth. Some analysts say this is the sign the worst is behind us.
We heard the Fed, Boris, say last week that there was a bit of a slow down of the U.S. economy at the end of last year. This is going to be our first kind of read on what economists, government economists think the pace of growth is like in the U.S.
SANCHEZ: And potentially a follow-up to the raise of interest rates in December coming in the spring.
ROMANS: Yes, potentially. We'll see. But if there's a lot of global market turmoil. I think may be they take a pass.
SANCHEZ: All right.
A new arrest in the dangerous escape of three inmates in California. Did the female help them escape? We'll find out, next.
(COMMERCIAL BREAK)
[04:47:00] ROMANS: There is still no sign of three inmates a week after they broke out of a jail in Orange County, California. Now, a woman who taught English as a second language is under arrest. She's suspected of helping the prisoners mount their daring escape.
We've get more from CNN's Paul Vercammen.
(BEGIN VIDEOTAPE)
PAUL VERCAMMEN, CNN CORRESPONDENT: Boris, Christine, the woman arrested, Ravaghi, began working here at the jail teaching English as a second language in July. In a group class setting, she met the suspected kidnapper and torturer Nayeri and they developed some sort of relationship. She helped them escape, according to officials, by providing him with mapping capability.
LT. JEFF HALLOCK, OCSD SPOKESPERSON: At this point, there is no confirmation she brought tools into the jail. She is denying having brought the tools. What we know is that she provided Google Maps, those types of things, to prepare for the escape.
VERCAMMEN: The sheriff's lieutenant also said that the attempted murder suspect Duong stole a white van in Los Angeles on Sunday. Apparently, Duong was taking that van for a test drive unaccompanied by a single owner when he simply did not return it. And officials believe that all three of the fugitives may be somehow living in that van -- Christine, Boris.
(END VIDEOTAPE)
SANCHEZ: All right. Paul, thank you.
The standoff in the Oregon National Wildlife Refuge is not over yet. The FBI says negotiators are talking to four people still holed up inside, hoping to bring the month long occupation to a swift resolution. It comes as federal officials released video of the confrontation with the protest leader Ammon Bundy that led to the fatal shooting of one of his followers, LaVoy Finicum. The FBI says the video is proof the shooting was justified.
ROMANS: Ethan Couch, the so-called affluenza teen, now back in the U.S. and the custody of Texas juvenile authorities. He's expected to appear in court later this morning. Couch returned Tuesday from Mexico where he fled after allegedly violating probation in a DUI crash that killed four people. A hearing on transferring his case from juvenile to adult court is set for next month. His mom, meantime, Tonya Couch, charged with hindering his apprehension. She is currently out on bail.
SANCHEZ: Michigan's governor facing a controversy in the lead contamination crisis. An activist group says documents show the governor's office started trucking coolers of purified water to state workers in Flint last January, a year ago. Governor Rick Snyder didn't publicly acknowledge the problem with Flint's drinking water until October. Two Senate Democrats are proposing $600 million in the federal aid to replace contaminated pipes and treat Flint residents who've been harmed by the tainted water supply.
ROMANS: And that treatment could last for decades.
And meantime, an Ohio lawmaker demanding answers from the state EPA about the water crisis in the town of Sebring. State Representative John Boccieri claims knew back in August about elevated lead levels found in the water and did nothing to protect the public. It wasn't until last week that Sebring residents were told about high levels being found at several testing locations.
[04:50:01] SANCHEZ: Vice President Joe Biden defending the administrations deportation policies in a message to House Democrats. Biden tried to downplay the step up deportations of undocumented families that have sparked anger among some congressional Democrats. He says they are being carried out as humanely as possible, adding that it's the kind of enforcement that results from a broken immigration system.
ROMANS: All right. Fifty minutes past the hour.
The stock market is set to rise this morning. Well, that's good. But one widely held stock isn't getting any love from investors, even after record profits. An early start on your money, next.
(COMMERCIAL BREAK)
SANCHEZ: New warnings this morning about the Zika virus. Officials at the World Health Organization say the mosquito-borne illness is exploding in the Americas. Most of the 3 million to 4 million cases per year reported in the Tropics and Brazil, the biggest hot post. Its president calling for the country to unite against the threat.
The 32 cases have been confirmed in 12 U.S. states and the District of Columbia among people who traveled to countries where the virus is more widespread. Infection can cause mild symptoms, but the main concern here is for pregnant women and babies born with a condition called microcephaly, causing serious brain damage.
CNN's Shasta Darlington is at a clinic in Brazil that helps women who fear their newborns may have already been infected.
(BEGIN VIDEOTAPE)
SHASTA DARLINGTON, CNN CORRESPONDENT: While the rest of world is waking up to the Zika crisis and trying to figure out how it's linked to all these birth defects, here in Brazil, this is the reality they're living. We're at Oswaldo Cruz Hospital. Here, they turned this area in a triage center, where they're receiving babies with microcephaly every day.
Behind these doors, doctors are treating them and looking for signs of microcephaly, of brain damage and how deep that damage really goes. Doctors are scrambling to put together the early stimulation programs and physical therapy that babies with microcephaly need.
[04:55:03] Also, the counseling, the psychological counseling for families. And, of course, because there is no vaccine, there is no cure. Brazil is also trying to combat the mosquitoes that transmit this virus, Aedes Aegypti. The problem is, that according to health officials, 1.5 million people have been infected. What we are seeing is a lot of panicked, expected mothers.
In many cases, the virus is asymptomatic and many of them fear they won't even know until the day they give birth whether or not they may have been infected.
Shasta Darlington, CNN, Recife, Brazil.
(END VIDEOTAPE)
ROMANS: Thank, Shasta.
Pentagon officials are saying more U.S. troops need to be sent to Iraq and Syria in the coming months to defeat ISIS. They say troops have gained ground against the terror group but to deal a lasting blow to ISIS, the Pentagon says additional forces are needed to work with Iraqi and Kurdish and Syrian fighters on the ground in those countries.
SANCHEZ: Up to 80,000 migrants may be expelled in the coming years from Sweden in the coming years. Swedish officials say the deportations would only apply to applicants who had their requests for asylum rejected. Not for those found to be fleeing war, prosecution and other life threatening events. The many reason for the expulsions is the staggering cost.
Sweden's migration agency said housing and caring for migrants has become a growing burden.
ROAMNS: All right. Let's get an early start on your money this morning.
A global rally right now for stocks after the Bank of Japan shocks the world with negative interest rates. Huge gains in Asia overnight. Stocks in Europe jumping as well. Sub zero interest rates essentially encouraging banks to lend money out into the economy rather than stashing it with the central bank.
Shares of Amazon tanking in pre-market trading disappointed Wall Street. But here, the numbers were staggering. Sales jumped 22 percent in the last quarter. Strong holiday shopping result, something we didn't see from any of Amazon's competitors. Profit surged 125 percent, a record high profit. The company's prime membership jumped last year, but it just wasn't the performance Wall Street thought it would be.
Report this week from consumer intelligence research partner shows just under half of all U.S. households subscribe to Amazon Prime now. Despite all that success, Wall Street was an even better quarter. So, the stock is taking a beating this morning, down 13 percent in pre-market trading.
One real world benefit is your mortgage rates are moving lower. The average 30-year fixed rate mortgage is now 3.79 percent, 15-year fixed rate loan. This is a popular refinancing tool, 3.07 percent, four straight weeks now of lower rates.
Now, the Federal Reserve hiked the rate last December, but mortgage rates are tied to bonds. And as investors are jumping into safe investments. It's pushing rates lower. It is fear and paranoia around the world that is driving down interest rates which is good if you are driving a house or a refinance.
SANCHEZ: Including potential home owners.
ROMANS: Absolutely.
SANCHEZ: The next hour of EARLY START continues right now.
(MUSIC)
SANCHEZ: Republicans running for president facing off on the debate stage, but the frontrunner not even there. Donald Trump at his competing event miles away, but who made the best case to undecided voters in Iowa? We have live team coverage to help us break it all down.
ROMANS: Good morning and welcome to EARLY START. I'm Christine Romans.
SANCHEZ: Happy to be here with you, Christine. I'm Boris Sanchez. It's Friday, January 29th, 5:00 a.m. on the East Coast.
Republicans running for president going after each other with gusto on the debate stage in Des Moines, which is three days to go now until the Iowa caucuses. Conspicuous by his absence, Donald Trump, he was holding his competing event, a benefit for veterans just a few miles away.
But without Trump, the sparks were flying. Seven Republicans candidates spearing, Democrats and each other and at times the moderators.
(BEGIN VIDEO CLIP)
WALLACE: It's not my question you get a chance to respond to. It's his answer. You don't get 30 seconds to respond to me.
CRUZ: Your question was you have disagreed --
WALLACE: You don't get 30 seconds to respond to me.
(CROSSTALK)
WALLACE: Sir, I know you like to argue about the rules, but we will conduct the debate.
PAUL: What is particularly insulting is he is the king of saying oh, you're for amnesty. Everybody's for amnesty except for Ted Cruz. But it's a falseness, and that's an authenticity problem.
RUBIO: This is the lie that Ted's campaign has built on and Rand touched upon it, that he's the most conservative guy and everyone else is -- you know, everyone else is a RINO.
And then in the committee you said, I want to bring people out of the shadows. Now, you wan to trump Trump on immigration. But you can't -- we're not going to beat Hillary Clinton with someone who's willing to say or do anything to win an election.
BUSH: I'm confused because he was the sponsor of the "gang of eight" bill that did require a bunch of thresholds, but ultimately allowed for citizenship over an extensive period of time.
RUBIO: You used to support a path to citizenship.
BUSH: So did you.
RUBIO: Well, but you change --
BUSH: Yes, so did you, Marco.
CHRISTIE: I guarantee you one thing: she will never get within ten miles of the White House. The days for the Clintons in public housing are over.
RUBIO: I think Bernie Sanders is a good candidate for president -- of Sweden.
(END VIDEO CLIP)
