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Early Start with John Berman and Zoraida Sambolin

Trump On The Defensive; Some Conservatives Searching For Independent Candidate; Trump's Behavior With Women; Oil Industry Tops Layoff List; ISIS Attacks Baghdad Gas Plant; Trump Breaks with Obama Over Brexit; Protests Erupt In Venezuela; Buffett-Backed Group Bids For Yahoo. Aired 5:30-6a ET

Aired May 16, 2016 - 05:30   ET

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

[05:30:00] JOHN BERMAN, CNN ANCHOR: Donald Trump on defense. New reports about his past raising new questions about how he does business and how he treats women.

CHRISTINE ROMANS, CNN ANCHOR: The Democratic race for president heating up. Two major contests coming up on Tuesday. Is Hillary Clinton vulnerable?

BERMAN: And then, violence plaguing Baghdad. A gas plant was attacked. At least 10 people dead this morning. This is just the latest assault in and around that city in last few days.

Welcome back to EARLY START, everyone, I'm John Berman.

ROMANS: And I'm Christine Romans, this Monday morning. It is 31 minutes past the hour. Up first, Donald Trump playing defense. A rough weekend capped off by a parting shot from President Obama. Trump is still denying he posed as his own P.R. man decades ago.

He's now fighting back against a "New York Times" report about his past behavior with women, a report Trump calls a hit piece. And then, there's this. Listen to President Obama take a not so veiled swipe at Trump in a commencement address at Rutgers University on Sunday.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: In politics and in life ignorance is not a virtue. It's not cool to not know what you're talking about. (LAUGHTER) That's not keeping it real or telling it like it is. That's not challenging political correctness. That's just not knowing what you're talking about. (LAUGHTER) And yet, we've become confused about this.

(END VIDEO CLIP)

ROMANS: And then, there's this, the "Dump Trump" movement still very much alive within the GOP. Some conservatives are still trying to recruit an independentcandidate. Even Mark Cuban claims he was approached. And while he thinks it would have been fun to tangle with Trump, Cuban says it's just too late to step in.

More now on all of this from CNN Kristen Holmes.

(BEGIN VIDEOTAPE)

KRISTEN HOLMES, CNN WHITE HOUSE PRODUCER: John and Christine, Donald Trump wrapped up a week on the defensive here at his alma mater, the University of Pennsylvania, where he watched his youngest daughter, Tiffany, graduate.

The presumptive GOP nominee's efforts to unite his party were clouded after audio released in "The Washington Post" questioned whether or not the billionaire had posed as his own spokesperson in 1991 in order to talk to reporters about his love life. Trump denies allegations that it's his voice on the tape.

The Trump campaign is also under fire over Trump's refusal to release his tax returns. He says he will not release those returns until an audit is complete.

PAUL MANAFORT, TRUMP CONVENTION MANAGER: He has said he will release his tax returns. Never has changed his position. What he has said is he's under audit now and once the audit is completed he will release the tax returns.

JAKE TAPPER, CNN HOST, "STATE OF THE UNION": Why not release the ones from before the audit? Why not release? If 2015 -- first of all, the IRS says you can release them to the public even if they're under audit.

MANAFORT: And --

TAPPER: But why not release 2014, 2013, 2012 and just put this issue to rest?

MANAFORT: Well, as I understand it the audit is going on for the last eight years, so going back eight years' worth of tax returns. And anything beyond eight years is not going to be reflective of anything other than interest on the part of the media.

TAPPER: You're saying that the audit is for eight years' worth of returns?

MANAFORT: That's what I'm led to believe, yes.

HOLMES: While more and more Republicans are gathering behind Trump, not all are convinced. Some conservatives still looking for an independent candidate that might go up against Trump in November. Ryan and Trump aides will sit down together as the campaign continues its efforts to unite the party -- John and Christine.

(END VIDEOTAPE)

BERMAN: All right, Kristen, thanks a lot. Let's talk more about this with CNN politics reporter Eugene Scott. He joins us live from Washington this morning. Eugene, obviously the news over the weekend very much focused on John Miller, a man who may or may not exist. This is a guy who was allegedly a spokesperson for Donald Trump in the

90's and this recording of him emerged and a lot of people say it sounds an awful like like Donald Trump. Listen to this.

(BEGIN VIDEO CLIP)

JOHN MILLER, AUDIO FROM "THE WASHINGTON POST": A lot of the people that you write about really are -- I mean, they call, they just call. Actresses -- people that you write about just call to see if they can go out with him and things. So, I've sort of been put in here to handle because I've never seen anybody get so many calls from the press.

(END VIDEO CLIP)

[05:35:00] BERMAN: Again, that was someone alleging to be a man named John Miller, serving as a spokesman for Donald Trump some 20 plus years ago. It was a tape that was a recording between that John Miller person and Sue Carswell, a reporter for "People" magazine, who says she didn't give the tape to "The Washington Post" this week. Maybe it was Donald Trump who did it, which is a curious accusation. Listen to what Sue Carswell told Michael Smerconish.

(BEGIN VIDEO CLIP)

SUE CARSWELL, REPORTER: All right, two people had the tape. I had a tape and Trump had a tape, and I don't have the tape.

MICHAEL SMERCONISH, CNN HOST, "SMERCONISH": How do you think it got into play?

CARSWELL: Well, it didn't get to "The Washington Post" through me.

SMERCONISH: So?

CARSWELL: Trump.

SMERCONISH: You think Trump dropped this tape?

CARSWELL: Yes.

SMERCONISH: Why would he do that?

CARSWELL: Look what's gone on this week. Taxes, Paul Ryan, the butler -- the butler did it. Now, Trump seems to like to pull "People" magazine-type stories into the --

(END VIDEO CLIP)

BERMAN: A strange amount of curiosity surrounding this to be sure, and if it happened in the 90's, yes, it would be weird. But perhaps the biggest issue for Trump now is the flat-out denial that it was him. He says it just wasn't him at all, yet a lot of people listened to the tape. We have put our audio experts on it and they said, you know, it probably is Trump. EUGENE SCOTT, CNN POLITICS REPORTER: Yes, indeed. I mean, I think a lot of people actually do think it's Trump, but the amount of attention that this has gotten certainly takes away from issues that he would want fewer people to pay attention to.

So, if you could pick a scandal to have the media and voters consumed with, comparing this scandal to his issues with his butler, the taxes, and whether or not Paul Ryan and other Republicans will end up supporting him, this is the one the one that you would want to go with if you were Donald Trump.

ROMANS: And we should -- for people that don't know that butler story, there was so much Donald Trump news last week. But, a former long-time butler for Donald Trump at Mar-a-Lago, I believe -- his social media was full of some really unsavory social media postings and the like. So that's what getting a lot of the attention there.

Also, attention this weekend to a piece in "The New York Times" about Donald Trump's behavior around women, and it quoted some people who said he behaved aggressively or inappropriately, or just kind of weirdly over the years.

There was a -- one of the women, a former Miss USA contestant, wrote this. "He kissed me directly on the lips. I thought 'Oh my God, gross.' He was married to Marla Maples at the time. I think there were a few other girls that he kissed on the mouth. I was like wow, that's in appropriate."

Of course, Donald Trump just says that this is a hit piece. And he said, "Why did the failing @nytimes refuse to use any of the names given to them that I was so proud to have helped with their careers. DISHONEST!"

But, there will be more scrutiny on Donald Trump and his behavior over past decades, no question, because he is the presumptive Republican nominee. We scrutinize all of these candidates. This is the most important job in the world. But I don't think his supporters -- it feeds right into their distrust and mistrust of the media, anyway. I mean, it feeds right into why they like Donald Trump.

SCOTT: Indeed. I mean, this is not the first piece written about Donald Trump questioning his past behavior with women and his voters, including women, have either looked past it, ignored it, or not been concerned about it primarily because of, perhaps, who it comes from.

There's a lot of media distrust, as you hinted at, specifically of "The New York Times", but also it's just not an issue for them. They really want to see Donald Trump in the top office. And even if they do have issues with him and his behavior with women, they trust him somehow more than they trust Hillary Clinton.

BERMAN: It's interesting. Reince Priebus, chairman of the RNC, was on the Sunday shows -- the weekend shows -- being asked questions directly about Donald Trump -- "The New York Times" article on women, the John Miller story in "The Washington Post". And he says, you know, Donald Trump needs to answer for these. But Reince Priebus -- that was defense.

On offense, essentially saying it would be crazy, though, for Republicans to think about a third party candidate right now. Listen to this.

(BEGIN VIDEO CLIP)

REINCE PRIEBUS, RNC CHAIRMAN: -- and they can try to hijack another party and get on the ballot. But, look, it's a suicide mission for our country because what it means is that you're throwing down not just eight years of the White House but, potentially, a 100 years on the Supreme Court, and wrecking this country for many generations.

(END VIDEO CLIP)

BERMAN: You see Reince Priebus navigating this new Trump-led GOP. While Reince Priebus doesn't want to have to answer for everything Trump has done, but at the same time he needs to stand up for his nominee.

SCOTT: Indeed, and who would come up against Trump? I mean, I think the Republican voters have, arguably, the most diverse option of candidates during this election cycle that we've seen in years and they still chose Trump.

And so, if the voters have spoken and they prefer Donald Trump, there isn't much reason to believe that if a third party candidate was introduced that that person would have more success than Donald Trump.

ROMANS: And so, from the Republican perspective it is split through a Republican voters' vote and then Hillary Clinton wins, and they say they don't want Hillary Clinton to win. That is the most important thing above all for them.

All right, Eugene, nice to see you this morning. Sorry I lost my voice.

BERMAN: Getting choked up over the campaign.

ROMANS: I got all -- you know, it's all excited. Thanks, Eugene, nice to see you.

SCOTT: Indeed.

[05:40:00] ROMANS: All right, time for an EARLY START on your money. Donald Trump and Bernie Sanders slammed companies, like Carrier, for moving good paying manufacturing jobs out of the U.S., but Carrier doesn't even rank in the top 20 biggest job killers in America this year.

A new report shows the oil industry, not manufacturing, is responsible for the biggest cuts. The number one job killer in America, National OilWell Varco. It's a big supplier of equipment used in oil and natural gas drilling. The company has cut nearly 18,000 positions this year as oil prices have crashed. For the same reason, Schlumberger and Halliburton are in the top five. Wal-Mart, though, comes in second here. Sixteen thousand jobs cuts come from store closings. Intel has shed 12,000 positions in a restructuring effort. You can check out the rest of America's top 10 job killing companies and all the latest news on the jobs market at "CNN MONEY". Some great analysis there.

BERMAN: All right, 20 minutes to the hour. ISIS claiming responsibility for a string of new attacks in Baghdad. More than 100 people dead in just the past few days. We have a live report next.

[05:41:00]

(COMMERCIAL BREAK)

[05:45:00] BERMAN: This morning, ISIS is claiming responsibility for a deadly attack on a gas plant in Baghdad. A total of 10 people -- seven police officers, three guards, were killed when two suicide car bombs barreled through the facility.

CNN's Jomana Karadsheh tracking the latest for us from Amman in Jordan. Jomana, what are you learning?

JOMANA KARADSHEH, CNN CORRESPONDENT: Well, John, according to Iraqi officials, at about 5:00 a.m. local time on Sunday, as you mentioned, two suicide car bombers attacked this gas plant in the northern outskirts of Baghdad in Taji. And after these suicide bombers blew up, six militants made their way into this facility, clashing with security forces and guards for several hours before the attack was repelled.

Now, the governor of Baghdad very critical of security officials, saying that the force protecting this installation was not adequately armed to face the attackers and that the quick reaction force was really slow to arrive on the scene.

Now, the real concern here for security officials and Iraqi officials is that this is the latest in a series of attacks we're seeing claimed by ISIS over the past couple of weeks. These high-profile attacks coming at a time when the country's going through a real serious political crisis. Concerns that ISIS might be exploiting this to try and reignite the sectarian war.

Now, Iraqi and U.S. officials say it's ISIS acting out of weakness, reacting to recent losses. Brett McGurk, who is President Obama's special envoy to the coalition against ISIS, was here in Jordan on Sunday and he addressed this violence. Here's what he had to say.

(BEGIN VIDEO CLIP)

BRETT MCGURK, SPECIAL PRESIDENTIAL ENVOY FOR THE GLOBAL COALITION TO COUNTER ISIL: And now, the caliphate, as they call it -- this perverse caliphate is shrinking. So, they are very much on the defensive. They have not retaken any territory, really, since their operations in Ramadi, going all the way back to May.

(END VIDEO CLIP)

KARADSHEH: And U.S. officials say that ISIS has lost about 45 percent of the territory once controlled in Iraq and 20 percent of the territory it once controlled in Syria. But as we have seen over the past couple of weeks it still has that ability, John, to carry out these devastating high-profile attacks almost on a daily basis.

BERMAN: Yes, indeed, they do. Meanwhile, the second largest city in Iraq still under ISIS control, Mosul. Thanks so much, Jomana, appreciate it.

ROMANS: George Zimmerman is now trying to sell the gun he used to kill Trayvon Martin. Trying to sell it for a third time. The owner of the auction site telling CNN the listing is expected to go live at 9:00 a.m. Tuesday. A starting price of $100,000 and a buy it now price of $500,000. Zimmerman's previous attempt was hijacked by fake accounts posting insanely high bids, hitting $65 million at one point Friday.

BERMAN: NTSB investigators are now on the scene of a deadly charter bus crash in south Texas. Eight people were killed, 44 others injured when the bus veered off a highway and rolled over this weekend. That's about 45 miles north of Laredo.

OGA Charters was ordered twice in 2015 to remove one of its buses from service because of brake problems. It is not clear if this was the same bus that crashed this weekend.

ROMANS: All right, 48 minutes past the hour. Let's take a look at what's coming up on "NEW DAY" this Monday morning. Alisyn Camerota joins us. Hi, Alisyn.

ALISYN CAMEROTA, CNN ANCHOR, "NEW DAY": Hey, guys, happy Monday. So, we have a lot to talk about today. Donald Trump's relationship with women is in the spotlight again this morning. And did he masquerade as his own spokesperson in the 90's? If so, why is he lying about it now and will these stories have any effect on the campaign? We will ask former candidate turned Trump surrogate, Dr. Ben Carson.

Also, after several failed attempts last week, as you have both been talking about, George Zimmerman is planning again to auction off that gun used to kill Trayvon Martin. So, we will ask the owner of the auction website why he had a change of heart about selling this gun.

So, a lot to get to. We'll see you in about 11 minutes.

ROMANS: All right, looking forward to that. Thank you, Alisyn.

Stocks are on a three-week losing streak but there's one big earnings report this week that could help turn the market around.

BERMAN: It better.

ROMANS: It's really showing you a bright spot in the economy. We'll get an early start on your money next.

[05:49:00]

(COMMERCIAL BREAK)

[05:53:25] BERMAN: All right, this morning Donald Trump is wading into one of the most important foreign relationships the United States has. Donald Trump says if he wins the election that the U.S. -- that Britain's trade status with the United States would not be hurt if Britain decides to exit the European Union.

This is a big deal because just last month President Obama warned British officials they would move to the back of the queue in trade negotiations if that country backed out of the European Union. But, Trump says he'll treat the Brits fantastically, whether they stay or go.

Let's get the latest on this from CNN's Nic Robertson in London. Nic, obviously this is something followed very closely every day right now in Britain with this referendum coming up. Now something that could become an election issue here in the United States, as well.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, look, this referendum in Britain is running about neck-and-neck so everything that gets said on this that comes from a leading politician, somebody like Donald Trump, potentially the next president of the United States, is going to get very eagerly listened to here in this country.

What people here heard from President Obama, just a few weeks ago, was that if they voted to leave, then perhaps the relationship with the United States could be damaged. Donald Trump is saying something completely the opposite. Indeed, he says, it's up to the British people how to vote. That in his opinion, he says, they should be voting to leave. This is what he said.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Well, I just speak for myself. I don't want anybody to even, you know, change your opinion. Personally, I wouldn't do it. I mean, a lot of the migration and a lot of the acceptance of people is because of the European Union. I think that's been a disaster.

PIERS MORGAN, "GOOD MORNING BRITAIN": So you would prefer Britain, personally, to pull out?

[05:55:00] TRUMP: Me, I have no preference. I'm -- you know, I have big investments in Britain, but I have no preference. I think if I were from Britain I would probably not want it. I'd want to go back to a different system.

(END VIDEO CLIP)

ROBERTSON: And another insight that people gleaned from this interview, the relationship with the British prime minister should Donald Trump become president. Well, that could be strained as well because of comments both of them have made in the past. So this is going to be eagerly listened to here, and certainly for the leave the European Union camp this will be fuel for them in their campaign and fight going forward, John.

BERMAN: It's interesting, you know. Donald Trump has been used in a foil in European politics. It will be interesting to see how they use him to support their arguments there, as well. Nic Robertson for us in London, thanks so much.

ROMANS: All right, a suspicious device that forced the cancellation of a Manchester United soccer match on Sunday turned out to be a harmless training device left behind in a bathroom by a private security firm, a firm that was working with bomb-sniffing dogs.

The discovery forced the evacuation of Old Trafford stadium moments before a key match with AFC Bournemouth. The game has been rescheduled now for tomorrow night.

BERMAN: Yes, by the way, everyone who gets to go will go for free.

ROMANS: Oh, wow.

BERMAN: They'll get their money back and get to go to the game for free. What a mess.

All right, chaos erupting in Venezuela. President Nicolas Maduro claiming a constitutional state of emergency to overcome what he calls external aggressions against his country. He's calling for military exercises next weekend to prepare for a possible foreign invasion.

Anti-government activists have been jamming the streets of Caracas. Polls show 70 percent of the population wants Maduro out.

ROMANS: All right, let's get an EARLY START on your money this Monday morning. Dow futures up just slightly. Stock markets in Europe and Asia mixed right now. You can see the price of oil above $47 a barrel. It's really taking a breather this morning following a rough patch for stocks.

The Dow is on a three-week losing streak, now just has slim gains for the year. So does the S&P 500. The Nasdaq is down about six percent now for the year. You can thank volatile oil prices and some bad corporate earnings news for that.

The retail sector getting crushed. That could change this week. Home Depot and Lowe's -- they are both scheduled to report their earnings over the next two days. Analysts think those results could be strong because of steady growth in the housing market.

An investing group backed by Warren Buffett is bidding for Yahoo's core internet business. That's according to a person familiar with that sale. The group is led by Dan Gilbert. He's the founder of Quicken Loans and the owner of the Cleveland Cavaliers. Yahoo began accepting offers last month.

At its peak in early 2000, Yahoo was worth $255 billion. Now it's valued at $35 billion following a series of missteps, bad bets, and get this -- six CEO's over the past nine years. That includes Yahoo's stake in Alibaba and Yahoo Japan. That would not be a part of the sale.

BERMAN: No.

ROMANS: The core internet business would be valued at roughly $5 billion. According to the source, though, some estimates are as high as $8 billion.

BERMAN: The parts of Yahoo that are attractive to investors are not the parts that we use, or used to use, every day as consumers.

ROMANS: That's right.

BERMAN: It will be interesting to see. I mean, Yahoo has tried so many different things over the last few years to right itself and to no avail.

All right, Donald Trump on the defensive now. New questions being asked about his business, his alleged spokespeople, and also how he treats women. "NEW DAY" begins right now.

(BEGIN VIDEO CLIP)

BERMAN: Donald Trump on defense as new reports about his past raise new questions about how he treats women.

PRIEBUS: These are things that he is going to have to answer for.

SEN. JEFF SESSIONS (R), ALABAMA: People have not expected purity on his part.

TRUMP: That was not me on the phone.

JOHN MILLER: I can tell you this.

TRUMP: I can tell you this.

UNIDENTIFIED MALE: His campaign is seriously claiming that that isn't Mr. Trump?

MANAFORT: If Donald Trump says it's not him, I believe it's not him.

SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: For us to win the number of pledged delegates we need your help, big time, right here in Kentucky.

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: If you vote for me on Tuesday I will stand up and fight for you.

UNIDENTIFIED MALE: Fireballs lit up the sky north of Baghdad.

UNIDENTIFIED FEMALE: ISIS has claimed responsibility for Sunday's deadly attack on a gas plant. This is ISIS on the defensive.

(END VIDEO CLIP)

ANNOUNCER: This is NEW DAY with Chris Cuomo and Alisyn Camerota.

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to your NEW DAY. It is Monday, May 16th, 6:00 in the east. Up first, Donald Trump on defense. The presumptive GOP nominee dismissing a "New York Times" report revealing, allegedly, a troubling past with women. He calls it a lame hit piece.

RNC chairman Reince Priebus says Trump will have to answer for things in his past, but he denounces any effort to draft a third party candidate. He calls that a suicide mission.

CAMEROTA: Meanwhile, President Obama uses a commencement speech to blast Donald Trump, without ever naming him. Obama telling graduates that ignorance is not a virtue in politics and slamming Trump's plans to build a wall and ban Muslims.

We have the 2016 race covered the way only CNN can, so let's begin with Phil Mattingly. Hi, Phil.

PHIL MATTINGLY, CNN CORRESPONDENT: Well, Donald Trump survived the primary and many of the attacks, actually, causing his numbers to go up.