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Early Start with John Berman and Zoraida Sambolin

Sanders: No Regrets on Calling Clinton "Not Qualified" Attack; The Race for President: GOP Fight for Delegates; John Kerry Arrives in Baghdad; Taking Back Mosul From ISIS. Aired 4:30-5a ET

Aired April 08, 2016 - 04:30   ET

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

(COMMERCIAL BREAK)

[04:32:20] MIGUEL MARQUEZ, CNN ANCHOR: Well, the race for president getting uglier last night. Bernie Sanders doubling down on calling Hillary Clinton not qualified to be president.

CHRISTINE ROMANS, CNN ANCHOR: Republicans running for delegates at contested convention. Trump's shifting strategy now as his competitors plan their path to the White House.

MARQUEZ: And breaking news. Secretary of State John Kerry landing in Baghdad with a key meeting on how to fight ISIS. We are live.

Welcome back to EARLY START. I'm Miguel Marquez.

ROMANS: So nice to see you this Friday morning.

MARQUEZ: Friday, Friday, Friday.

ROMANS: It's Friday. I'm Christine Romans. Thirty-two minutes past the hour.

New attacks and reaction this morning in the Democratic battle over credentials. Bernie Sanders on "Late Night with Seth Myers", standing by his putdown that Hillary Clinton is not qualified to be president.

(BEGIN VIDEO CLIP, "LATE NIGHT WITH SETH MYERS"/NBC/LAST NIGHT)

SETH MYERS, LATE NIGHT WITH SETH MYERS: You made a comment about Hillary Clinton being unqualified for the office of president. Is that something you regret saying?

SEN. BERNIE SANDERS (I-VT), PRESIDENTIAL CANDIDATE: Well, it was said after she and her campaign said that I was unqualified.

MYERS: Well, I didn't hear her say you were unqualified. I heard her failed to say you were qualified. I didn't -- she didn't say unqualified.

SANDERS: Well, look, the issue is, you know, after we won in Wisconsin and that was our sixth victory in seven caucuses and primaries, I think the Clinton campaign has been getting a little bit nervous and I think they have been getting more negative. If people attack me and distort my record, we will respond.

(END VIDEO CLIP)

ROMANS: All right. This as both candidates crisscross New York today, trying to lockdown the state before its crucial April 19th primary.

Senior Washington correspondent Jeff Zeleny has the very latest from New York.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Christine and Miguel, after one of the most heated days on the Democratic campaign trail, Bernie Sanders and Hillary Clinton campaigning again today in New York. Now, Bernie Sanders questioned the qualifications again and again of Hillary Clinton to be president. He actually went there and said, because of her vote on the Iraq War, because of her positions on Wall Street, how she accepts money from Wall Street donors, she's not qualified to be president.

Now, most Democrats probably don't believe that, but it certainly fired up his supporters. But she took the high road, for the moment at least and this is how she responded.

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Well, it's kind of a silly thing to say, but I'm going to trust the voters of New York who know me and have voted for me three times, twice for Senate and once in the presidential primary.

Look, I didn't -- I don't know why he's saying that, but I will take Bernie Sanders over Donald Trump or Ted Cruz anytime.

ZELENY: Now, Bernie Sanders for his part saying he is simply trying to respond to what he called campaign smears from the Clinton campaign, who have planned to question his qualifications, his preparedness, his readiness to be president. He took one more shot at Hillary Clinton for all her fundraising. She flew to Ohio and Colorado to do some fundraising on Thursday and he made sure that voters knew about it.

[04:35:05] SEN. BERNIE SANDERS (I-VT), PRESIDENTIAL CANDIDATE: I will not leave here this morning and go to a Wall Street fund- raiser. I will not be --

(APPLAUSE)

I will not be hustling money from the wealthy and the powerful.

ZELENY: Now, with both candidates on the campaign trail here in New York, Hillary Clinton in Rochester and Buffalo, Bernie Sanders in the city, they're doing an all-out push for the New York primary now to some 11 days away. How this race goes is going to shape how the rest of the Democratic Party goes and if the party will ever unify once this long primary race is over -- Christine and Miguel.

(END VIDEOTAPE)

ROMANS: All right, Jeff. Thanks, Jeff.

You know, next Thursday night, Hillary Clinton and Bernie Sanders face-off in a CNN Democratic presidential debate in Brooklyn. That's April 14th, 9:00 Eastern, five days before the New York primary. They will tangle in the Brooklyn Navy Yard.

MARQUEZ: That might be a little interesting.

Bill Clinton campaigning for -- in Philadelphia for his wife, took on, as only Bill Clinton can do, the Black Lives Matter protesters who are heckling him over the 1994 crime bill he signed into law as president. The protester said the bill destroyed African- American communities because it led to a surge of imprisonment of black youth. Bill Clinton said last year that he now regrets signing the bill.

But on Thursday, he struck a defiant tone.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT: I heard it. Can I answer?

No, you see, here's the thing, I like protesters, but the ones that won't let you answer are afraid of the truth. That's a simple though (ph). Be afraid. Very, very afraid.

I talked to a lot of African-American groups. They thought black lives matter. They said take this bill because our kids are being shot in the street by gangs. Because of that bill, we had a 25 year low in crime, a 33-year low rate in the murder rate.

And listen to this, because of that and the background check law, we had a 46-year low in the deaths of people by gun violence.

And who do you think those lives were that matter? Whose lives were saved that matter?

(END VIDEO CLIP)

ROMANS: All right. On the Republican side, the presidential contest now totally focused on the race for delegates. Donald Trump overhauling his strategy for winning the nomination, focusing on New York and upcoming mid-Atlantic primaries and dropping planned trips to California and Colorado. Another change in plans for the Trump campaign: an expanded role for veteran Republican strategist Paul Manafort in directing delegate operations in the Trump's new Washington office. No surprise there as you get further into the season and toward this convention, obviously, he will take a bigger role.

New York will be the proving ground for the strategy. Trump adding 17 co-chairs across the state, including two members of Congress. And former New York City Mayor Giuliani, he's announcing Thursday he will vote for Trump, though, he stopped short of an actual endorsement. All this with Trump ahead in New York polls, 27 points ahead of John Kasich, 35 points ahead of Ted Cruz.

It looks good for Trump here. It will be interesting to see how this plays out heading into convention.

Ted Cruz says he is not intimidated by the polls suggesting Trump will crash him in New York and not backing down on his attack on New York values. He says everyone knows what he is referring to, referring to liberal Democratic values. Cruz holds no events today, but he will travel to Colorado this weekend where he is favored to win a majority of the 37 delegates at the state convention there.

If Cruz doesn't win the 1,237 he needs to clinch the Republican nomination, he tells CNN's Dana Bash he has a plan.

(BEGIN VIDEO CLIP)

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: Do you have a pool of Trump delegates who've already said, "I'm with you on the second ballot"?

SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: We are working hard to elect our people to every delegate slot. I'll tell you, if we come to a contested convention, we will know every single delegate. We will have a relationship with every single delegate. We will have conversations with every delegate. And we're working to get our people elected to every single delegate slot.

(END VIDEO CLIP)

ROMANS: John Kasich making it no secret his path to the White House runs through the contested convention. Kasich arguing that once delegates are no longer bound by primary and caucus results and they're able to vote their conscious, he will be their logical choice.

(BEGIN VIDEO CLIP)

GOV. JOHN KASICH (R-OH), PRESIDENTIAL CANDIDATE: So, now, we're going to go to a convention and there's going to be two things that the delegates are going to think about. This first one -- now, this one is really crazy. Can the Republicans win in the fall, OK? That's a consideration. OK?

But then there's going to be a second consideration. And the second consideration is, who could actually be president? OK, who could actually do this?

(END VIDEO CLIP)

[04:40:00] ROMANS: Kasich holds two events today in Connecticut and Upstate New York.

All right. Donald Trump says America is a big loser because of bad trade agreements. Bernie Sanders says American companies are killing American jobs with their plants overseas.

I asked the commerce secretary, Penny Pritzker, one of the most powerful players in global commerce, to respond to all of the dire talk on the campaign trail.

(BEGIN VIDEO CLIP)

PENNY PRITZKER, SECRETARY OF COMMERCE: I think it is a oversimplification. I think trade is bearing the brunt of effects of globalization, as well as automation. But if we're not in the fastest growing marketplaces in the world, if our companies are not present, then our workers are going to lose out.

(END VIDEO CLIP)

ROMANS: She says those trade deals are the rules of the road for surviving globalization, not making it worse. Manufacturing is not dead in America, she added. The secretary said the manufacturing sector has gained 850,000 jobs since 2010 after losing millions in the recession.

MARQUEZ: Breaking news this morning, Secretary of State John Kerry landing in Iraq. Political chaos threatening the fight on ISIS. We are live.

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[04:45:20] ROMANS: All right. We're following breaking news this morning. The Secretary of State John Kerry landing in Iraq this morning as an escalating political crisis there threatens the fight against ISIS. Secretary Kerry aiming to shore up support for Iraq's embattled prime minister.

CNN's global affairs Elise Labott joins us live on the phone right now.

What can you tell us, Elise?

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT (via telephone): Well, Christine, Prime Minister Haider Abadi is facing protests to call for his removal. He is pushing the cabinet shuffle aimed at combating corruption and holding some of the oil reserves and Iraq is dealing with an economic crisis, about dealing a lot of resentment against the prime minister. There are huge protests.

And he's really had to divert some of the special forces that had been fighting against ISIS to protect the area around his office and shore up the capital. So, Secretary of State Kerry here to shore up the prime minister and his government, and let them know that the U.S. thinks that pushing these reforms and fighting corruption is a good idea, but not take their eye off the bald which is fighting ISIS. Iraqi forces with the aid of the U.S. will be expected to retake Mosul in the coming months.

There is a concern by the United States that the Iraqis will lose or at least won't be able to preserve some of the gains they had over the last year against ISIS, Christine.

ROMANS: How can American influence help here? I mean, what are the politics in Iraq right now? Is Secretary of State Kerry fighting to keep Haider al-Abadi in? Does that help her or hurt the cause? I mean, there have been some who've said American influence has not been helpful.

LABOTT: Well, I think in this case, it certainly may be. And it's not just the United States wants to keep the Prime Minister al- Abadi in office. It's also the Iranians. The first time, the U.S. and Iranians are on the same side. And the Iranian government is trying to shore up the prime minister.

I think Secretary Kerry coming here to show that the U.S. is with the Iraqis with the fight against ISIS, you know, I think sees some aid in terms of helping the humanitarian situation on the ground. There might be some analysis on that later today. I think in this case, Secretary Kerry coming here and showing support for the government actually does help and this is what the country is looking for, plus the fact that the prime minister is going ahead and announced a new cabinet. I think that will go a long way to helping him keep his job.

ROMANS: Trying to fight ISIS, in Mosul. Trying to retake Mosul. A lot going on.

Elise Labott traveling with the press pool there. She in Baghdad with the secretary of state has just arrived. Thank you so much for the Elise.

MARQUEZ: The explosive leak of the panama papers is shaking up political leaders around the world.

In Russia, Vladimir Putin is calling the revelations about shell companies and tax havens an American plot to destabilize his country. Some of Putin's associates moved $2 billion through offshore accounts.

Also caught up in this widening scandal, British Prime Minister David Cameron, he now admits profiting from an offshore trusts established by his father after first calling the issue a, quote, "private matter".

Leaders in Iceland named a new prime minister and calling for early elections. Former Prime Minister Sigmundur Gunnlaugsson resigning under fire after the Panama Papers linked him to an offshore account.

And in Argentina, federal prosecutors are calling for an investigation of President Mauricio Macri after he was implicated in the document leak. He denies any wrongdoing and says he has nothing to hide.

This is just going to get bigger.

ROMANS: Oh, yes.

All right. A patient who escaped from a psychiatric hospital near Tacoma, Washington, has a history of violence and admires the Oklahoma City bomber. Police believe 28-year-old Anthony Garver bought a bus ticket after escaping through a hospital window with another patient. That other patient was captured the manhunt for Garver will resume this morning.

Police say he is a survivalist who was committed in 2014 when he was deemed incompetent to stand trial on a murder charge.

MARQUEZ: Federal officials ordering Amtrak to retrain all its rail workers on basic safety rules. The directive coming just days after the train going 106 miles an hour, struck and killed two Amtrak employees working on the backhoe on the same track.

[04:50:03] The engineer slamming on the brakes just five seconds before the impact. The NTSB is expected to issue its preliminary findings on the crash within ten days.

ROMANS: All right. The end of a TV juggernaut.

MARQUEZ: No.

ROMANS: "American Idol", what will do you with your time in closing the 15-year run with a winner and special moments.

Brian Stelter looks at the phenomenon -- Brian.

(BEGIN VIDEOTAPE)

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: Hey, Christine. Hey, Miguel.

It was a who's who of Hollywood at the "American Idol" finale. The former judges like Simon Cowell, Paula Abdul, and Randy Jackson all coming back to pay tribute to the show.

Also, the original co-host of "American Idol." Remember this? The first season, it wasn't just Ryan Seacrest. It was also a guy named Brian Dunkleman who left the show after the first season and has never been able to leave that decision down.

So, he came back on stage with Seacrest. He told reporters it was a cathartic moment for him. He was bitter for losing out on the opportunity to host the show for so long, but he came back and said it was a healing moment.

"American Idol" is all about those sort of moments, whether you're going to achieve fame or not. I think it's one of the reasons why it's been so popular for so long, to think about all of the stars that have come from the show. People like Kelly Clarkson, Carrie Underwood, Daughtry, Fantasia, Jennifer Hudson, the list goes on and on. There were dozens of contestants, winners and losers, on stage for the finale.

The show is ending, though, at least for now. It's a cold hard business calculation by FOX. The show got more and more expensive to produce, while fewer and fewer people are watching.

But the creators of "Idol" are already dreaming ways to bring it up, to re-imagine the show for the future, more digital, more interactive version of "American Idol." So, maybe in a few years, we'll be talking about the return of Idol.

But for now, it is in retirement. The show must go on, but not today.

Christine, Miguel, back to you.

(END VIDEOTAPE)

ROMANS: All right. Brian, thank you for that, Brian, in L.A. for us this morning.

All right. Big losses for stocks yesterday. A rebound is in the works. We'll get an early start on your money, next.

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[04:56:17] MARQUEZ: Happening now: U.S. and coalition troops preparing Iraqi forces for critical offensive to retake Mosul from ISIS. Terrorists control the critical city, but Iraqi fighters are gaining momentum, recapturing several villages and towns near Mosul in recent weeks. U.S. and military officials admitting the next step will not be easy.

CNN's Arwa Damon tracking the latest developments for us live from Irbil, in Iraq.

How would you describe that momentum, Arwa?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Very, very shaky, Miguel, because at this stage, despite the fact that they draw up significant coalition support in the air and in the form of U.S. advisors on the ground, it has come to something of a pause. The Iraqi army got bogged down in a village that led to ISIS recapturing it. Now, they are holding what is described as defensive positions while they wait for more reinforcements to arrive.

It gives you a little bit of an idea of just what kind of a slog it is going to be to simply get to Mosul, never mind recapturing Iraq's second largest city. And in all of this we are beginning to see some of the very chilling tactics that ISIS is using, including according to some of the villagers from of those areas that the Iraqis have managed to free from the clutches of ISIS, they say that they are using them, ISIS is using them as human shields, shoving them into homes in the center of village and not la allowing them to leave as the Iraqi army advances.

At least two that we spoke to lost loved ones to stray bullets, the crossfire, and the clashes. The U.S. also at this stage raising alarm by about the possibility of the Mosul dam could collapse, potentially flooding the city of Mosul and causing damage all the way down to Baghdad. So, a number of challenges, Miguel, on so many levels.

MARQUEZ: Thank you very much for keeping up with all of this. Arwa Damon for us in Iraq.

ROMANS: All right. Fifty-eight minutes past the hour. It's Friday, early start on your money.

Dow futures are higher thanks to a big jump in crude oil prices. Stock markets in Europe are rising. Asia closing mostly higher as well, the rebound after big losses yesterday. The Dow lost 174 points. That's nearly 1 percent. The losses for the NASDAQ even worse. S&P now negative for the year.

Banks were among the biggest losers. Citigroup tanking almost 4 percent. Bank of America, Goldman Sachs down 3 percent. JPMorgan Chase off 2.5 percent.

Concerns about profits being squeezed by extremely low interest rates that had investors fleeing the bank stocks.

New this morning, Federal Reserve Chair Janet Yellen says the U.S. economy is making tremendous progress recovering from the damage of the financial crisis. In a look at that picture, something you rarely see. A landmark interview with Yellen and the three previous Federal Reserve chairs. You have four living and former Fed chairs together, with Fareed Zakaria.

Fareed asked Yellen if there's an economic bubble is forming and as some candidates on the campaign trail suggest.

(BEGIN VIDEO CLIP)

JANET YELLEN, FEDERAL RESERVE CHAIR: This is an economy on a solid course. Not a bubble economy. We try carefully to look at evidence of a potential financial instability that might be brewing and some of the hallmarks of that clearly overvalued asset prices, high leverage, rising leverage and rapid credit growth. We certainly don't see those imbalances.

(END VIDEO CLIP)

ROMANS: I don't mean to nerd out on you. Alan Greenspan via satellite, that is a pretty remarkable set of people.

MARQUEZ: That's nerdy.

ROMANS: It's my kind, it's my version, finale of "American Idol." You can see more highlights of this conversation on "FAREED ZAKARIA GPS" this Sunday, at 10:00 a.m. Eastern, right here on CNN.

MARQUEZ: You really made your Friday.