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Early Start with John Berman and Zoraida Sambolin

John Kerry Arrives In Baghdad; Sanders Stands By Clinton Put- Down; Democratic Candidates Pushing Hard For A New York Win; Cruz's Plan For A Contested Convention; Bill Clinton Heckled By Protesters; Commerce Secretary Talks Trade; Kerry In Iraq As Politics Threaten ISIS Fight; Taking Back Mosul From ISIS; Futures Up After Big Losses Yesterday. Aired 5:30-6a ET

Aired April 08, 2016 - 05:30   ET

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

(COMMERCIAL BREAK)

[05:30:23] CHRISTINE ROMANS, CNN ANCHOR: The race for president getting ugly. Late last night, Bernie Sanders doubling down on calling Hillary Clinton not qualified to be president.

MIGUEL MARQUEZ, CNN ANCHOR: And Republicans running for president preparing for a fight for delegates at a contested convention. Trump's shifting strategy, as competitors slammed their path to the White House.

ROMANS: Breaking news. Secretary of State, John Kerry moments ago landing in Baghdad, a key meeting on how to fight ISIS and show the Iraqi government.

We are live there. Welcome back to Early Start. I'm Christine Romans.

MARQUEZ: And I am Miguel Marquez. Happy Friday to you.

ROMANS: Oh, you too.

MARQUEZ: I'm so relieved it is Friday. It is 30 minutes past the hour.

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

(BEGIN VIDEO CLIP)

SETH MEYERS, LATE NIGHT WITH SETH MEYERS HOST: You made a comment about Hillary Clinton not being qualified to be president. Is that something you regret saying?

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

MEYERS: Well, I did not hear her say you were unqualified. I heard her bailed to say you were qualified. I thought -- 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 of caucuses and primaries, I think the Clinton campaign has been getting a little bit nervous, and I think they've have been getting more negative. If people attack me and distort my record, we will respond.

(END VIDEO CLIP)

MARQUEZ: Well this is both candidates crisscross New York today looking to lock down the state before its crucial, April 19th primary.

Senior Washington Correspondent, Jeff Zeleny has the latest from New York.

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Christine and Miquel, after one of the most heated days on the Democratic campaign trail, Bernie Sanders, 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 the 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 a moment at least. And this is how she responded.

(BEGIN VIDEO CLIP)

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.

(END VIDEO CLIP)

ZELENY: Now, Bernie Sanders for his part saying he is simply trying to respond to it. He call campaign smears from the Clinton campaign who have plan to question his qualifications, his preparedness, his readiness to be president.

He took one more shot at Hillary Clinton for all her fund rising. She flew to Ohio and Colorado to do some fund rising on Thursday. And he made sure voters knew about it.

(BEGIN VIDEO CLIP)

SANDERS: I will not leave here this morning and go to a Wall Street fund-raiser. I will not be hustling money from the wealthy and the powerful.

(END VIDEO CLIP)

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, just 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?

ROMANS: Once this long primary race is over. From your lips to -- OK. Helping us break down the fight in New York and across the political landscape, CNN Politics Reporter, Tal Kopan joining us from the Washington Bureau. Good morning.

You know, I want to start with the Republicans here. And Ted Cruz, Dana Bash, our very own Dana Bash sat down with him and had really illuminating conversation with him yesterday.

Listen to what he talks about the strategy to his for delegates in the convention.

(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?"

TED CRUZ, (R) 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 had conversations with every single delegate. And we're working to get our people elected to every single delegate slot.

(END VIDEO CLIP)

ROMANS: What is fascinating to me right now in the stage of the Republican side of the race, Tal, is that, you know, they are focusing on New York and they're doing this retail politics day-to-day. But they are strategizing for what that contested convention is going to look like and the delegate fight, it's a really two-tier strategy for all these candidates now.

[05:34:58] TAL KOPAN, CNN POLITICS REPORTER: Absolutely. I mean, when we made the calendar for the year, you know, sort of back in January, we are looking at primaries. And now we're going back and then pencilling all the state conventions because a lot of these 2,400 individuals who ultimately are going to be making the decision on the Republican nomination for president if it continues in the trend towards the contested convention that we have seen.

A lot of these individuals haven't even been chosen yet. But they are about to become the most sort of popular Republicans in America because all the candidates are going to be calling them. We the press are going to be calling them. Everyone is going to want to know how are they going to decide.

And part of the reason is that a lot of states sort of find these delegates to the primary results for one ballot or two ballots. But if we see all of the candidates fall short of that 1,237 majority plus one number, there are multiple ballots. And on second ballots or third ballots, these people can suddenly start voting for whoever the rules sort of allow them to. And it can become a very open race all over again.

MARQUEZ: I was amazed to hear Ted Cruz use the word if there is a contested convention because clearly he seems to think that there will be.

Look, Republicans clearly have mainstream of Republicans that basically say that they don't like Trump. But a lot of them hate Ted Cruz even more.

Here's how Peter King put it.

(BEGIN VIDEO CLIP)

PETER KING, (R) NEW YORK: We have some that join Kasich, he's a solid person. Donald Trump who at least has achieve something, unlike Ted Cruz, again the way he attacked New York, the smart attitude he has, I could not find myself ever voting for him in the Republican primary. If he is the nominee of the party, obviously I'll vote for him. Not a lot of enthusiasm. But I'll vote for him.

(END VIDEO CLIP)

MARQUEZ: Now, on the final racers on the Republican side, have said "Why is it that the other 99 senators cannot stand Ted Cruz? There's must be something wrong here."

How hard is it for Cruz, for as confident as he is, that he has all of their names all their numbers, all their e-mails and can have -- can line it up? How confident should he really be that he can do that?

KOPAN: Well that's why there's why there's an -- even Christine, I hate to break to you. But there's a third tier of this.

ROMANS: No.

KOPAN: Yes. But of those delegates, there's going to be a smaller group that are going to sit on something called the Rules Committee. And the Rules Committee are going to set the rules for this convention.

And another fight that Ted Cruz is waging right now, is making sure that that committee puts in place a rule that effectively only allows his name and Donald Trump's on the ballot. This is you made have heard mention to an eight states rule that you have to win a majority of delegates in eight state to even be eligible for a nomination. And he has spoken publicly to reporters about how it is very much in his interest to maintain that rule, partly because there are people who are supporting him. Keep in mind, one of his endorsers now, Lindsey Graham once said, that choosing between Donald Trump and Ted Cruz is like being choosing between being shot and poisoned.

I mean he's chosen now one of those two. He didn't articulate who representative what. But this is the tepidness of some of the endorsements that Ted Cruz has. And so it's in his interest to prevent these sort of scenarios where suddenly Paul Ryan or Mitt Romney or whoever you just sort of make up on the spot can come and swoop in and steal it from him. He's really trying to lock that down.

ROMANS: It is so interesting.

OK, let's talk about the Democrats here quickly because there's something that happened yesterday that I thought was sort of interesting. It was Bill Clinton in Philadelphia -- heckled by Black Lives Matter folks. And he has to think, he handled this in a way in a smoother way that I've seen other people on both party and only Bill Clinton.

Listen.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER U.S. PRESIDENT: I don't know how you would characterize the gang leaders who got 13-year-old kids hopped up on crack and sent them out on the streets to murder other African- American children. Maybe you thought they were good citizens. She didn't. She didn't. You were defending the people who killed the lives you say matter.

(END VIDEO CLIP)

ROMANS: Some of the signs in fact you can say, it talks about super predators, you know ...

MARQUEZ: Yeah.

ROMANS: In terms of some of it.

MARQUEZ: This is all over him signing the 1994 crime bill that many African-Americans say sent thousands of African-Americans to prison.

ROMANS: But he really got fired up with his defense there. What did you think of that moment?

KOPAN: There are a couple of things that you can see in this moment. And one is that Bill Clinton has real skin in this game. I mean we talk about him as sort of a surrogate for his wife. But, you know, every indication is that not only is he very invested in Hillary Clinton's campaign. And, you know, by all accounts from insiders and all the reports we've seen, gets very upset when she's under fire in ways, the thinks it's not fair. But this is a stark reminder that his legacy is also on the line. And the second take away that is related to that is it shows really how remarkably different the politics of the Democratic Party and progressive moment specially is than it was 20 years ago.

[05:40:00] You know, Bill Clinton was the darling of the left for years and was really heralded. And now he sees one of a signature policy the ground has really shifted.

And, you know, perhaps in a fair way there have been some consequences of that crime bill that he may not have seen. But, you know, his legacy's on the line and so is his wife's. And he's really getting fired up about it.

ROMANS: Well, she is now, she's talking about making sure the change policy so there's not mass incarceration of black youth. That is something that is on her ...

MARQUEZ: Serious fire in Bill Clinton.

ROMANS: I'll say so, yeah, he was mad.

All right, thanks so much Tal, nice to see you this morning, happy Friday.

You know, Donald Trump says, America is a big loser because of bad trade agreements.

Bernie Sanders says, American companies are killing American jobs with their plans and expansions overseas.

I asked the Commerce Secretary, Penny Pritzker, one of the most powerful players in the global commerce. I asked her to respond to the dire trade talk on the campaign trail.

(BEGIN VIDEO CLIP)

PENNY PRITZKER, SECRETARY OF COMMERCE: I think it's an oversimplification. I think trade is bearing the brunt of the 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: Manufacturing is not dead in America, she says. She says the manufacturing sector has gained nearly 850,000 jobs 838,000 to be exact since 2010. Though as you can see, it lost millions in the recession.

MARQUEZ: Now breaking news this morning.

The Secretary of State, John Kerry lands in Baghdad. Political chaos there threatening the war against ISIS.

We'll have that next. (COMMERCIAL BREAK)

[05:45:51] ROMANS: Following Breaking News, Secretary of State John Kerry landing in Iraq this morning as an escalating political crisis there threatens to fight against -- threatens to fight against ISI. Secretary Kerry aiming to shore up U.S. support for Iraq's embattled prime minister.

CNN's global affairs correspondent Elise Labott is there. She joins us live on the phone from Baghdad with the very latest. Elise, him going there says a lot about how important the United States thinks that unity within the Iraqi government is and in support of the prime minister at a time when they're really are working hard to contain ISIS.

ELISE LABOTT, GLOBAL AFFAIRS CORRESPONDENT: That's right, Christine. And Prime Minister al-Abadi, his process in qualifying his removal as he is pushing (inaudible) corruption and mismanagement, reforms are not coming fast enough for (inaudible) including the (inaudible) supporters have really besieged the area around Prime Minister al- Abadi office in the green -- in the heavily fortified green zone and he needed to divert some of his special forces who were fighting ISIS to shore up the capital.

So while he is very concerned (inaudible) jeopardizes the fight against ISIS (inaudible) needed in the fight in western harbor province to secure up on that area and they're already is really ministering (inaudible), but ISIS still controls a lot of territory between Mosul, the country's second largest city. Iraqi forces are looking to try and make a defensive tool (inaudible).

(inaudible) and meetings with the Prime Minister and the (inaudible) and others are saying, listen, we know you need to take care of this political crisis and to combat corruption is very important, but encourage them that while we're dealing with this political issues, not (inaudible) need to stay focused on the fight against ISIS, especially ahead with an upcoming campaign to retake Mosul, Christine.

ROMANS: All right, Elise Labott for us this morning in Baghdad. Thank you for that, Elise.

MARQUEZ: Now, the explosive leak of the Panama Papers are shaking up political leaders around the world.

In Russia, Vladimir Putin is calling the revelations about Shell companies and tax havens and American plot to destabilize his country. The Panama Papers indicate some of Putin's closest associates moved $2 billion through offshore accounts.

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

Leaders in Iceland have named a new prime minister and are 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. Marcri denies any wrongdoing and says he has nothing to hide.

ROMANS: All right, the Panama Papers, that's going to be a story that's going to keep ...

MARQUEZ: Not can go away.

ROMANS: ... you're right (ph).

All right, let's take a look what's coming up on New Day, Michaela Pereira joins us this morning. Good morning Michaela.

MICHAELA PEREIRA, CNN ANCHOR: Christina and Miguelito, how are you doing?

MARQUEZ: Hello.

ROMANS: Doing great. Happy Friday.

MARQUEZ: I want you to look what she is wearing here.

ROMANS: I borrowed your necklace. Thank you.

PEREIRA: OK, I borrowed your shoes.

MARQUEZ: Oh, nice.

PEREIRA: All right, we're all just one big family here.

All right. Today on New Day, Democrats and Republicans duking it out at a new York primary. We're going to talk Bernie Sanders' campaign manager and New York's mayor Bill de Blasio, a Hillary Clinton supporter about the increasingly nasty tone that we're seeing on the trail.

Also Donald Trump looking to the delegate fight ahead tapping a new convention manager, we're going to speak exclusively to that man, Mr. Paul Manaford. We have a one-on-one interview as well lined up this morning with Ted Cruz.

Also, a major Catholic Church document isbeing released. We will breakdown its significance. We'll have a live report from Rome. Want to find out how this is going to be received in parishes around the world.

ROMANS: Oh, yeah. I can't wait to hear Delia Gallagher's analysis about it because some of it looks really interesting.

[05:50:01] PEREIRA: It's big. I have it on my desk. It's a gigantic document.

MARQUEZ: Well, with Manaford, Cruz, and the Pope, I mean, what else do we need? ROMANS: It'd be good.

PEREIRA: There you go. Yeah, throw it to Cuomo and (inaudible).

MARQUEZ: I'm watching your (inaudible), I'm watching it.

ROMANS: All right. Thanks, Michaela. Nice to see you. Happy Friday.

Big losses for stocks yesterday, but hey, rebound is in the works. I'm going to give you an early start on your Money Friday edition, next.

(COMMERCIAL BREAK)

MARQUEZ: Happening now, U.S. and coalition troops preparing Iraqi forces for a critical offensive to retake Mosul from ISIS. The terrorists control the strategically critical city in the north, but Iraqi fighters are gaining momentum.

CNN's Arwa Damon tracking the latest developments for us live from Irbil in Iraq. Arwa, what is your sense of it? How is the central government in Baghdad and those forces on the ground operating together?

[05:54:57] ARWA DAMON, CNN CORRESPONDENT: They're struggling, Miguel, a lot. That momentum has effectively this stage a short while after this initial phase of the operation was launched come to something of a pause. Iraqi security forces managing to initially recapture a handful of villages and then finding themselves bogged down, turned around, stuck in a series of battlefield mishaps and are now holding defensive positions waiting for more reinforcements to arrive.

But from those villages that they did manage to rest from the clutches of ISIS, we are hearing testimony about a horrific tactic. Villagers telling us that ISIS, they say, was using them as human shields forcing them into homes at the center of the village, not allowing them to leave as the Iraqi army advanced in at least two of the families that spoke to said that they have loved ones that were killed in the crossfire.

This is going to the one of the many challenge that the Iraqi security forces do end up facing once they begin that push. That little advance towards Mosul and then the attempt to recapture Iraq's second largest city. There are potentially 1.5 million to 2 million people's lives, Miguel that ISIS and the Iraqi army will possibly end up putting at risk if ISIS continues to not allow them to leave the battleground.

MARQUEZ: So much writing on this. Arwa Damon for us, thank you very much.

ROMANS: All right, 56 minutes passed the hour. Let's get an early start in your Money Friday edition. DOW Futures higher thanks to a big jump in crude oil prices. Stock markets in Europe rising as well. Asia closing mostly higher. The rebound comes after big losses yesterday, the DOW shed 174 points, about 1 percent. Losses for the Nasdaq were even worst and S&P 500 dropped sending it negative now for the year.

Banks, the big losers, Citigroup, Bank of America, Goldman Sachs, all down sharply here. JPMorgan Chase off 2.5 percent. Concerns about profit being squeezed by extremely low interest rates, that's why investors flood those bank stocks yesterday.

New this morning, Fed Reserve Chair Janet Yellen says the U.S. Economy is making tremendous progress recovering from the damage of the financial crisis, a landmark interview with Yellen and the three previous Federal Reserve chairs. Fareed Zakaria asking Yellen if there's an economic bubble forming and is the economy's perilous as some candidates on the campaign trail suggests.

(BEGIN VIDEO CLIP)

JANET YELLEN, FEDERAL RESERVCE CHAIR: This is an economy on a solid course, not a bubble economy. We tried carefully to look at evidence of 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: The Fed chiefs do not see a U.S. economy heading toward recession. You can see more highlights of this conversation on Fareed Zakaria GPS this Sunday at 10 Eastern right here on CNN. Pretty cool and rare to see that kind of power in one room.

MARQUEZ: It is indeed. The battle for New York gets ugly in the race for president. New Day, starts now.

(BEGIN VIDEO CLIP)

SANDERS: I'm not going to get beaten up. I'm not going to get lied about. We will fight back.

HILLARY CLINTON, PRESIDENTIAL CANDIDATE: Senator Sanders, by his own admission, has never been a Democrat.

SANDERS: The American people might wonder about your qualifications.

CLINTON: Well, that's kind of a silly thing to say.

DONALD TRUMP, PRESIDENTIAL CANDIDATE: I've got this guy talking about New York values with scorn in his face.

CRUZ: Everyone in New York and outside of New York knows exactly what I meant by that.

TRUMP: If you're asking me am I tough enough, yeah, I'm tough enough.

CRUZ: Folks, I think you can forget about him. UNIDENTIFIED FEMALE: It has been described as the most dangerous dam

in the world, a stark warning. The lives of up to 1.5 million Iraqis would be erased.

(BEGIN VIDEO CLIP)

PEREIRA: Well, it's getting there. Everything good?

CHRIS CUOMO, CNN ANCHOR: Sorry. Is my breakfast being on you.

Good morning. Welcome to your New Day. It is Friday, April 8th 6:00 in the East.

Up first, a race for president is going the wrong way. Sanders and Clinton still playing the qualified game with a flurry of comments from candidates and the campaigns about whether the other can be president. Is this war of words all about what's happening next week, as big New York primary, this big CNN Debate.

ALISYN CAMEROTA, CNN ANCHOR: Now, as for the Republicans, Donald Trump taking a break from the campaign trail to focus on his delegate strategy. And Ted Cruz standing by his disparaging New York values comments.

Coming up, we'll hear from Ted Cruz about that and so much more. We'll also have breaking news out of the Vatican, Pope Francis is issuing a landmark document this morning on marriage and the family. We'll have more on that in a moment, but we want to begin our coverage with the Race for the White House and CNN's Phil Mattingly. Hi, Phil.

PHIL MATTINGLY: Hey, Alisyn. Well, for a moment yesterday it appeared every single candidate in the race was trying to out-New York the other candidate. There is a stop by a subway station outside Yankee Stadium, a swing through an Italian deli in the Bronx and of course the tour of a matzah bakery in Brooklyn.

[06:00:00] But the underlying tension for both parties still remaining as we head into this New York primary. Questions about qualifications, about New York values, and about the shape of Donald Trump's campaign team.