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Early Start with John Berman and Zoraida Sambolin
Sanders Calls Clinton Unqualified; Trump Stumps in New York; New States Consider Religious Freedom Laws; Iraqi Forces Advance on Mosul. Aired 4:30-5a ET
Aired April 07, 2016 - 04:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[04:30:01] CHRISTINE ROMANS, CNN ANCHOR: Sanders repeatedly calls the Democratic frontrunner unqualified to be president. Unqualified.
CNN's Brianna Keilar has the very latest from the Sanders campaign.
BRIANNA KEILAR, CNN SENIOR POLITICAL CORRESPONDENT: Bernie Sanders, before a crowd of more than 10,000 here in Philadelphia at Temple University, pushing back on the some of the recent charges from Hillary Clinton and her campaign, where they've taken issue with some of his recent answers and certainly some of his struggles to explain some of the key parts of his campaign promises.
Here's what Bernie Sanders said to Hillary Clinton.
(BEGIN VIDEO CLIP)
BERNIE SANDERS (D), PRESIDENTIAL CANDIDATE: And she has been saying lately that she thinks that I am, quote-unquote, "not qualified to be president."
Well, let me just say in response to Secretary Clinton. I don't believe that she is qualified if she is --
(CHEERS AND APPLAUSE)
SANDERS: If she is, through her Super PAC, taking tens of millions of dollars in special interest funds. I don't think you are qualified if you have voted for the disastrous war in Iraq. I don't think you are qualified if you've supported virtually every disastrous trade agreement which has cost us millions of decent paying jobs.
(END VIDEO CLIP)
KEILAR: Pennsylvania, a very delegate-rich state, a must-win for Bernie Sanders if he is going to have a pathway to the White House. Right now he's hoping to build on momentum from a string of recent wins, push towards the New York primary, and then onward to Pennsylvania, as well as California -- Miguel and Christine.
MIGUEL MARQUEZ, CNN ANCHOR: Hillary Clinton's camp returning fire overnight. Her press secretary tweeting, "Hillary Clinton did not say Bernie Sanders was not qualified. But he has now absurdly said that about her. This is a new low." What Clinton did do in an interview on CNN was question whether
Sanders is ready to be president. She criticized Sanders for being unable to answer journalists' questions on just how he would go about breaking up the big banks, something that has been a cornerstone of his campaign.
(BEGIN VIDEO CLIP)
HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: In the interview it seemed unclear as to whether he understood how Dodd-Frank works, how we would go about breaking up banks that were posing risks to our economy. So I was, I think, a little bit surprised that there didn't seem to be a lot of substance to what he was saying.
I think the presidents who are successful know what they want to do and they know how to do it and they hit the ground running, able to do every aspect of the job, both as president and as commander-in-chief.
(END VIDEO CLIP)
MARQUEZ: Now Clinton and Sanders also battled over ties to the NRA. Sanders tweeting, "Only one Democratic candidate takes gun lobby money to fund her campaign." That attack, a reference to a fundraiser last month co-hosted by former NRA lobbyist Jeff Forbes. Clinton firing back at Sanders, "Only one Democratic candidate has voted for the NRA's most important piece of legislation in 20 years. You." Meaning Sanders.
Hillary Clinton and Bernie Sanders will face off in a CNN Democratic presidential debate in Brooklyn next Thursday week, that's April 14th, beginning at 9:00 p.m. Eastern. Five days before the New York primary.
That is going to be one to watch.
ROMANS: Yes. Epic indeed from Brooklyn.
All right. Donald Trump back on the campaign trail in New York as the fight for the delegate-rich state heats up ahead of that April 19th primary. At a huge rally last night on Long Island, Trump speaking for the first time since his bruising loss in Wisconsin to Ted Cruz.
He didn't really mention that loss all that much. A confident Donald Trump off the cuff on the stage. Trump attacking Cruz and touting his big lead in a brand new poll of Republicans in his home state.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: You know, a poll came out today that is through the roof. My standing in New York. You know what makes me happiest? When the people that know me best and boy, do you know me well. But when the people that know me the best think so much that it has poll numbers that nobody can believe.
(END VIDEO CLIP)
CNN's Sara Murray was at the rally last night.
(BEGIN VIDEOTAPE)
SARA MURRAY, CNN POLITICS CORRESPONDENT: Well, if Donald Trump was smarting from that loss in Wisconsin, you certainly could not tell when he was on the campaign trail here in Bethpage, New York. He drew a crowd of about 10,000 people before the fire marshal closed the doors here. And he was pumped up laying hard into his top GOP rival, Ted Cruz.
(BEGIN VIDEO CLIP)
TRUMP: You know, lying Ted Cruz came today. He couldn't draw 100 people. 100 people.
[04:35:03] He could -- I'm telling you. In fact, there was a big headline today in "The New York Post." He couldn't draw 100 people. Now do you remember -- do you remember -- do you remember during the debate when he started lecturing me on New York values like we're no good.
(END VIDEO CLIP)
MURRAY: Now it's clear that Donald Trump has decided that Cruz's dig against New York values is going to play differently maybe to Trump's advantage now that he's here in his home state of New York.
Meanwhile, Trump is dealing with some campaign issues of his own. There's a little bit of turmoil playing out. A power struggle going on right now between his campaign manager Corey Lewandowski and another veteran Republican operative Paul Manafort that the campaign brought in to help deal with delegate strategy. Could there be a campaign shake-up afoot? Only time will tell.
Sara Murray, CNN, Bethpage, New York.
(END VIDEOTAPE)
MARQUEZ: Big fight. Thanks to Sara Murray.
Ted Cruz not exactly shying away from his attack on New York values. At a campaign stop in the Bronx, Cruz turned the accusation back around on Trump. Slamming his past support for Democratic politicians.
(BEGIN VIDEO CLIP)
SEN. TED CRUZ (R), PRESIDENTIAL CANDIDATE: Let's be clear. The people of New York know exactly what those values are. That the values of liberal Democratic politicians like Andrew Cuomo, like Anthony Weiner, like Eliot Spitzer, like Charlie Rangel. All of them. Donald Trump has supported, given tens of thousands of dollars throughout the years. If you want to know what liberal Democratic values are, follow Donald Trump's checkbook.
(END VIDEO CLIP) MARQUEZ: This morning Cruz stages a rally near Albany then heads to New York City for a stop in Brooklyn.
John Kasich also barnstorming New York with visits planned for Brooklyn today and all across the state in the coming days. Though Kasich had a little more than $1 million cash on hand at last report his campaign insists he has enough money to advertise in New York ahead of its primary.
ROMANS: All right. Another round of meetings with lawmakers today for Supreme Court nominee Merrick Garland. And all of them are Democratic senators. The federal judge has had two meeting with Republican senators, but the party leadership is refusing to grant him a confirmation hearing. The head of the Senate Judiciary Committee, Chuck Grassley, says he plans to meet with Garland for breakfast next Tuesday, but will not be offering a hearing.
MARQUEZ: And attorneys for former House speaker Dennis Hastert are asking a federal judge to sentence him only to probation because he is in poor health and he's already been publicly disgraced. The 74-year- old Hastert, an ex-high school wrestling coach, pleaded guilty last year to violating federal banking laws. He admits failing to report cash withdraws that were allegedly used to pay off one of his former students. That student claims Hastert sexually molested him.
ROMANS: Thirty-seven minutes past the hour. Time for an EARLY START on your money. Thursday edition. Searching for direction this morning after a nice day yesterday. Look at that. The Dow popped 112 points. Nasdaq and S&P 500 also more than 1 percent higher.
Much of the optimism came from the Federal Reserve. Minutes from the March meeting suggest that the Fed won't raise rates until at least June. Stock investors like that. Investors now wagering a 23 percent chance of a rate hike then. The Fed target sits at 0.25 percent. The Fed originally wanted to hike rates four times this year but the crash in oil and the slump in stock market in February and concerns about global growth put that plan on hold.
You've also seen some people downgrading their expectations for growth in the U.S. economy in the first quarter. Rearview mirror, I know. But there might have been a little softness there.
MARQUEZ: Incredible how rough the first quarter was.
ROMANS: It was.
MARQUEZ: How it seems to have leveled off.
ROMANS: Stabilized. I think stabilized. Yes.
MARQUEZ: Amazing. Yes.
ROMANS: All right. New states drafting religious freedom laws. The critics say simply it legalizes discrimination. The controversy and the confusion surrounding these laws next.
(COMMERCIAL BREAK)
[04:43:07] MARQUEZ: Major corporations and human rights activists are blasting a new religious freedom law in Mississippi. The measure allows business owners to deny service to the LGBT community. But critics say the law is nothing more than a license to discriminate.
We get more from CNN's Polo Sandoval in Jackson, Mississippi.
POLO SANDOVAL, CNN NATIONAL CORRESPONDENT: Hey, Christine and Miguel. Good morning from Jackson, Mississippi, where the dust is still settling after the governor signed that controversial piece of legislation. The discussions continue. And also there seems to be different interpretations on what this law truly means. Will it only impact members of the LGBT community? Well, it really depends on who you ask.
I will tell you, though, if you take a closer look at the law it just makes specific mention of people who work in the wedding industry. Bakers, people who make wedding dresses, deejays as well. In fact we caught up with one man in particular yesterday. Someone who claims that he is the only openly gay black baker in the state. He says he is obviously very disappointed with this new law and it may even mean packing up and moving himself and his business out of his native state. Take a listen.
(BEGIN VIDEO CLIP)
JEROME JONES, BAKERY OWNER: We have to pretty much pick up and move everything because I don't feel like that we will ever be appreciated here for who we are. We'll never going to be looked at as equal.
(END VIDEO CLIP)
SANDOVAL: And then of course there is also the other side of the coin here. We caught up with one seamstress who told us that she would never knowingly make a dress for a same-sex wedding. Take a listen.
(BEGIN VIDEO CLIP)
JACKIE BUCHANAN, OWNER, SEAMINGLY PERFECT: I haven't run into a situation where there were, you know, two brides or whatever the case may be. But if that should happen, I would take a stand. I think Christians should take a stand on their beliefs.
(END VIDEO CLIP)
SANDOVAL: You just heard from Jacquelyn Buchanan who says that she would not abandon her principles and in her own words she would simple respectfully decline the same-sex couples who knocked on her door seeking for services.
So again an indication here, Christine and Miguel, that this conversation -- this debate is far from over in the state of Mississippi -- guys.
[04:45:07] ROMANS: . All right. Polo, thank you for that. You know, Mississippi not the only state to pass or consider a
religious freedom bill. In Tennessee the House just approved a measure that would allow mental health counselors to turn away patients based on their personal principles. The Senate still has to vote on the bill. Critics call it an unprecedented attack on the counseling profession and the LGBT community.
And a South Carolina lawmaker has just introduced a so-called bathroom bill that would require members of the transgender community to use public restrooms that correspond with their sex on their birth certificate. Not the sex with which they identify.
MARQUEZ: Lawmakers in Alabama moving forward with plans to impeach embattled Governor Robert Bentley. They'll meet later this morning to figure out how. That's because the state's laws on impeachment are vague.
On Wednesday, Governor Bentley held a news conference but refused to answer questions about an alleged affair he had with a former female aide.
ROMANS: New details about how the FBI unlocked the iPhone used by one of the San Bernardino terrorists. FBI director James Comey says the government purchased a tool from a private party that helped them hack that device. It only works on an iPhone 5c with an IOS 9 operating system. Now Comey says he has not decided whether to share with Apple exactly how they did it.
MARQUEZ: I'm sure they'd like to know.
A teacher in Newtown, Connecticut, the site of the deadliest school shooting in the U.S. history, has been arrested for carrying a concealed weapon on school grounds. Police say Newtown middle school teacher Jason M. Adams had a permit for the weapon. The school system has placed Adams on administrative leave. He is set to appear on court on the felony charge on April 20th. Adams has not responded to CNN's request for comment. 26 people, including 20 small children, were killed at Sandy Hook Elementary in December of 2012.
Now a wildfire in the west is spreading. The inferno fuelled by gusty winds. It erupted in western Arizona Wednesday and then it jumped the Colorado River into California. That's a long jump. Scorching more than 1400 acres. A resort and a pair of RV parks were forced to evacuate. Firefighters doing all they can to knock down the blaze right now. No word on what caused it.
ROMANS: All right. More on the weather. Frigid air is back with a vengeance along with some snow and some rain.
MARQUEZ: Punxsutawney Phil.
ROMANS: You know, winter didn't show up. Winter didn't perform.
MARQUEZ: Until now.
ROMANS: And then now all of a sudden, here it is. Meteorologist Derek Van Dam has the latest.
(WEATHER REPORT)
ROMANS: All right. Derek, thank you for that, Derek.
Are there cracks showing in the U.S. economy? Three major banks think so. We'll tell you why when we get an EARLY START on your money next.
MARQUEZ: I can hardly wait.
(COMMERCIAL BREAK)
[04:52:59] MARQUEZ: And now to a CNN exclusive. A new push for Iraqi forces backed by the U.S. to take back Mosul, Iraq's second largest city, from ISIS.
CNN international correspondent Arwa Damon was granted exclusive access to the frontlines where Iraqi troops are advancing. She joins us live from Irbil.
Arwa, great to see you there. How do the troops appear to be operating so far?
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Miguel, it's phenomenally shaky what happened is that they managed to move in and fairly successfully recapture a handful. About three villages from ISIS. We went with them to one of these locations where we saw some of the tactics that ISIS has been employing such as coming at them with wave after wave of suicide bombers. And the ISIS fighters, one in particular example, had managed to sneak into a house, and from there, we're trying to launch a counter attack to try to push the Iraqi army out.
They were able to call in for a coalition airstrike which gave them the upper hand on the battle field. We were also taken through a fairly complex underground labyrinth tunnels and passageways which also included sleeping quarters. But despite the fact that they had been quite breathe by the success that they had in the recapturing these villages. They then tried to move on another village and there they faced a very significant challenge. And that initially it seemed as if that particular operation was going to be a success. They had the coalition backing them, they had advisers that had gone over their plan with them beforehand, and even though the Iraqi army managed to get into this village and gain significant ground, there were then a series of battle field missteps, miscommunications that inadvertently resulted in what would seem to be a very basic mistake.
But the Iraqi army regrouping in a way that saw them withdraw from certain parts of the village. And then at the end of the day, they lost this key territory that they had actually briefly managed to hold. And now we are being told by their top commanders, they are simply trying to take on defensive positions until they can wait for more reinforcements to arrive, Miguel.
[04:55:13] MARQUEZ: I take it that progress is not as fast as they would like. Are these Iraqi forces from the southern part of the country working with Kurdish forces? And where do the Americans fit into all of this?
DAMON: These Iraqi army unit is the 15th Division. And it is completely retrained, it's under new command. And it is interestingly mostly made of individuals from Nineveh province itself. That is the province that has Mosul as its provincial capital. And that is the main city. Iraq's second largest that they're trying to move in on, that has been under ISIS control for two years.
Now the Peshmerga are holding an outer perimeter position for the Iraqi army as they advance. They are very much taking a defensive role in all of this because of the ethnic tensions that do potentially exist. The Kurds at the end of the day cannot go in and try to recapture such a large and massive Sunni city.
The coalition is there with its advisers. You have the artillery battalion that is on the ground that tragically has already suffered one casualty with the death of a marine that happened a few weeks ago. And then you, of course, have coalition air power. But despite all of that, the Iraqis are still struggling. And then of course you have the human component in all of these. Some of these villages, their civilian population was still there. And we spoke to some of them and they were describing chillingly how ISIS was keeping them as human shields, Miguel.
ISIS would not allow them to flee. They would shove families into homes at the center of the village, and yes, some of them did get caught in the crossfire. Some of them did lose their lives because ISIS would not let them go. And this is something that is going to be of even greater concern if and when the Iraqi army does move on to Mosul because they're a population of around 1.5 million to two million people. Most of them are still in the city.
MARQUEZ: Arwa, you have spent so much time in Iraq. Just your sense of it. Are you optimistic that they can get this done?
DAMON: You know, Miguel, I have wanted every single day to be optimistic about Iraq's future since I first began covering it more than a decade ago. And despite that desire that exists so strongly amongst the Iraqi population, it is very difficult because this is a country where nothing ever goes as expected. Where we have seen these various different insurgent and terrorist organizations morph and grow and evolve. And everything is so additionally compounded by the political challenges that exist, by the ethnic and sectarian tensions.
And people will tell you that the reason why an entity like ISIS is able to thrive so much in a country like Iraq is because of the political failure. So as much as I want to be optimistic, as much as I wish I could say that yes, it is going to eventually be a success, it is very difficult to say that definitively at this point in time.
MARQUEZ: Arwa Damon, thank you very, very much from Irbil in Iraq. Good luck.
ROMANS: All right. Incredible reporting there. Let's get an EARLY START on your money this morning. Dow futures have
turned slightly lower here. But oil prices are higher. Stock markets in Europe higher. Shares in Asia closing mixed overnight. Economists cutting their forecast for U.S. economic growth in the first quarter of 2016. The Atlanta Federal Reserve sees 0.4 percent as the reading on the first three months of 2016. That's a big downgrade from 2.5 percent growth it predicted in the middle of February.
Bank of America sees growth of just 0.6 percent. It's not much. Down from 2 percent. Wells Fargo, 0.1 percent. That's basically an economy not moving forward. It has been 1.4 percent.
OK, so why? Falling car sales in March. Lower equipment purchases by business. A weaker-than-expected reading on consumer spending. All of those darkening the view.
The revisions come after the Federal Reserve marked down its forecast for the entire year to 2.2 percent from 2.4 percent growth. The consensus among economists is that the U.S. is not headed for recession. But there are cracks in the U.S. economy that are starting to show.
But the auto industry is handing out the first pink slips since the great recession. Fiat Chrysler will lay off 1300 workers at a plant in Sterling Heights, Michigan. The plan makes the Chrysler 200. It is a midsized sedan. Sales of the 200 have fallen 63 percent this year.
MARQUEZ: Wow.
ROMANS: Lower gas prices are pushing people to larger cars, trucks, SUVs. Experts say the move will likely help position Chrysler for a better sales in the longer run.
And the U.S. auto industry overall, though, is growing, 260,000 new jobs in the last six years. That's a 40 percent increase. Car sales hit a record in 2015. And they have continued to climb overall in the first quarter, though. Again those March sales were weak. So many of the economists looking at March and saying, what happened there?
MARQUEZ: Mixed picture right in the middle of this grand transition.
ROMANS: Yes. You're right. You're right.
MARQUEZ: It's amazing.
EARLY START continues now.
