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Early Start with John Berman and Zoraida Sambolin

Republicans Release Report On Benghazi; Economic Shockwaves in Wake of Brexit Vote; IKEA Recalling Dressers After Death Of Third Child. Aired 5:30-6a ET

Aired June 28, 2016 - 05:30   ET

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

[05:31:00] ALISON KOSIK, CNN HOST: At this hour, the official report on Benghazi's horrific terror attack. The brand new details.

CHRISTINE ROMANS, CNN HOST: Days of huge economic decline and a leadership vacuum leaving the U.K. reeling after its shocking Brexit vote. Markets moving again. We'll tell you what happens next. Welcome back to EARLY START, I'm Christine Romans.

KOSIK: Good morning, I'm Alison Kosik. It's 30 minutes past the hour and breaking news. The Republican-led House Select Committee on Benghazi releasing key portions of its report on the 2012 attack in Libya that killed four Americans during Hillary Clinton's time as Secretary of State. CNN given exclusive advanced access to part of the report.

Chief political correspondent Dana Bash has gone over that section. She is with us now. Dana, let me ask you this. You know, the House created this select committee more than two years ago and finally, this morning, the report is out. Tell us more about what sticks out to you about what you're seeing in this portion that you've received.

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: Well, as you said, we were given a slice -- a little more than 200 pages of what we're told will be an 802-page report and the section that we've seen describes the events leading up to the deadly attack on the Benghazi compound on September 11, 2012.

The committee used what, they say, are 75,000 new documents, 81 witnesses never questioned by Congress. And it paints a narrative of the Benghazi outpost as a bureaucratic and diplomatic no man's land, which made it unnecessarily hard to get funding and security, even and especially, as it became so dangerous and the situation deteriorated so much.

But, in what we've received there doesn't appear to be a smoking gun when it comes to Hillary Clinton's culpability but the report does conclude the former secretary and her top aides had the intelligence to realize just how risky Benghazi was for her personnel there.

Alison, let me read you one quote from the report -- the portion that we got. "It is not clear what additional intelligence would have satisfied either Kennedy" who is one of her top aides, "or the Secretary in understanding the Benghazi mission compound was at risk -- short of an attack" -- Alison. KOSIK: All right, so there are a lot of questions over the years about this. One of the key questions was why Ambassador Chris Stevens -- why he was even in Benghazi on September 11, 2012, when he knew it was so violent --

BASH: Yes.

KOSIK: -- and his security for U.S. personnel there was so limited. Did the committee shed any new light on this?

BASH: A little bit, and this was fascinating and gives a little bit more of a picture of why. First of all, the report does say that Ambassador Stevens saw Benghazi as a crucial, crucial part of Libya and wanted the U.S. to have a permanent diplomatic post there -- a consultant. And that Stevens learned that funding would be available to make that happen but only through the end of that fiscal year, September 30th, so he had to act fast to make the case to secure the funding.

[05:35:00] Also, this is important. Emails indicate that Sec. Clinton and top aides planned a trip to Libya just one month later in October of 2012 and a permanent consulate could be a "deliverable" for her. That was part of this report.

And although Stevens is described as somebody who was tenacious and took maybe one too many risks, the report that we reviewed notes that he actually canceled a trip to Benghazi one month before he was killed because it was too dangerous, Alison.

KOSIK: Oh, so the Clinton campaign -- what are you hearing from them?

BASH: Well, we just got a tweet from a spokesman from the Clinton campaign, Brian Fallon, who basically went after this as nothing more than political. There you see it. "Far from honoring the four brave Americans who died, the Benghazi Committee has been a partisan sham since its start." This is clearly the way that Democrats have been reacting since yesterday.

In fact, the Democrats produced their own minority report yesterday saying that they thought it was just political, just like what we just saw. But, you know, Trey Gowdy, who is the chairman, made clear and he's likely going to do so later today, that this whole 800-page report is just a narrative and does not draw conclusions. He just wanted to have a lengthy narrative explaining what happened so that in the future things like this could be prevented.

However, not all Republicans on the committee were satisfied with this and two Republicans are releasing their own separate report based on this information where they do draw conclusions about this. It's about 40 pages and they talk about Sec. Clinton and her role, very specifically. They maintain it was the administration's desire to sweep a terror attack under the rug because it was so soon before the 2012 presidential election.

KOSIK: OK, when are we getting the other portion, do you think? BASH: Later this morning there's -- we expect to see them at a press conference later this morning and shortly before the entire 800 pages will likely be released and probably put on the Web for everybody to see.

KOSIK: All right, Dana, just stay with us now.

ROMANS: We want to break some more down the politics of all this, the Benghazi report, and look into this a little further and its effect, frankly, and on the 2016 race.

CNN political analyst Josh Rogin joins the conversation. He's a columnist for "The Washington Post". Good morning, Josh.

JOSH ROGIN, CNN POLITICAL ANALYST, COLUMNIST, "WASHINGTON POST": Good morning.

ROMANS: You heard Dana's reporting there. No smoking gun but still a lot of politics here.

ROGIN: Right. So, while the committee spent two years and $7 million on this investigation, Democrats are set to argue that that money did not produce anything that we really didn't already know about the night of Benghazi attack.

But, as Dana reported, there are a lot of new details and what these details do is they strengthen the argument that a) the facility wasn't prepared and was really --b) that during the attack maybe not everything was done possible to try to speed resources to Benghazi, and c) after the attack there was confusion and then some misdirection by the Obama administration about what happened. Was there a protest? Was it an al-Qaeda-linked group? What happened when Susan Rice when on all those Sunday shows?

So while there's not a huge revelation here, this will bring back to the forest, especially in the context of a presidential campaign, all of the criticisms of the Obama administration and Hillary Clinton's actions that night.

KOSIK: Dana, let me ask you this. Do you think that this report, from what you've seen, puts those conspiracies about Benghazi to rest?

BASH: Well, it's important to note that we've only seen the narrative of the days, and the weeks, and the months leading up to the attack. One of the main questions that Josh has been talking about that Republicans have been accusing Hillary Clinton of is, you know, not being available and not being there during the attack to kind of be at the helm.

Now, it doesn't appear that this report says that that is true. It doesn't seem to back that up. But what it does show is somebody who was very, very determined and interested in making what they thought was going to be a victory in the Middle East, which is the Arab -- the spring awakening -- Libya -- eventually, the Gaddafi government falling. They thought it was going to be a legacy issue for Hillary Clinton and

they were very much focused on that. And time and time again they were focused on the diplomatic part but it seems as though they were undercut by the fact that the security situation was so dire and the administration's policy was no boots on the ground.

ROMANS: Right.

[05:40:00] BASH: And you have people in these interviews and emails saying that they felt like they were, you know, in Iraq or in Afghanistan. But there, they had military support and here, they couldn't have it because it flew in the face of the administration policy.

ROMANS: And we should remember that Chris Stevens, the ambassador, was just an evangelist for Libya, right? And for really, I mean, clued in on the ground, making lots of trips. And he wanted to make this sort of outpost into a consulate -- this mission, really, into a permanent consulate, right Dana? And we're getting more about that and sort of why he was even there in the first place.

BASH: Yes, that's exactly right that he was determined to do so. The committee interviewed the State Department official who kind of set the wheels in motion to try to make it permanent. To extend the mission for another year because it was supposed to be done a year before they even -- they were even killed. And it was, in large part, at the wishes of Chris Stevens because, as you said, he was so determined to try to make it work.

But some of the things that are really just mind boggling in here. For example, one of the senior State Department officials who got one of the many requests that went unanswered or rejected for additional security said it wasn't in the proper format. That it was in a cable format. I mean, that is the kind of bureaucratic thing that just makes people go bananas when you're talking about somebody's security.

ROMANS: Right.

BASH: So that's just one example of many of the kind of -- of the reasons why they didn't have proper security in such a dangerous place.

ROMANS: Josh, the other sort of big story, and this will be political. The Benghazi story -- the headlines will -- no question. I mean, we've heard Donald Trump use, you know, Clinton's trustworthiness on the campaign trail where Clinton referred to these issues herself.

But I wanted to switch real quickly, Josh, to the other sort of big political story right now and that is Donald Trump walking back his signature ban on all Muslims coming into the United States. Listen to Trump here and then I want to get your thoughts on the other side.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESUMPTIVE REPUBLICAN NOMINEE: Donald J. Trump is calling for a total and complete shutdown of Muslims entering the United States until our country's representatives can figure out what the hell is going on.

GRETA VAN SUSTEREN, HOST, FOX NEWS "ON THE RECORD WITH GRETA VAN SUSTEREN: It's a ban on Muslims with exceptions --

TRUMP: Oh, of course, always you have to have exceptions.

VAN SUSTEREN: OK, well the way that everybody read it was it was across the table and --

TRUMP: Well, no, you have exceptions and, ideally, you won't have a ban very long.

(END VIDEO CLIP)

ROMANS: And now, we're hearing that he's going to be softening some of this. What do you make of this, Josh?

ROGIN: Well, it's kind of a flip-flop, isn't it? I mean, Trump's Muslim ban, which let's remember, it was announced right after the San Bernardino attacks, was not some sort of lark. That was a statement, it was planned, the campaign thought about it, they put it out, and they stuck to it, even in the face of severe criticism over recent weeks.

The fact that they're now sort of backing off of it will be portrayed by, especially, establishment Republicans as a positive signal that Donald Trump is becoming presidential and responding to the will of the party and mollifying his more xenophobic and racist positions.

And that may be part of it, but the other part of it is that you have a presidential candidate who's making these broad pronouncements and putting out these broad policies that don't really have any meat on them. They can't really be implemented in the real world. How do you ban Muslims? What do you do? How do you ask people if they're Muslim? And then, when he faces pressure, sort of changes them to fit the political winds.

So, for Republicans this will be hailed as a positive sign, but for Donald Trump's detractors it will be seen as another stumble in his back and forth positions on this issue.

ROMANS: All right, Dana and Josh, thank you.

KOSIK: I'm sure we'll hear more about Benghazi --

ROMANS: Oh, yes --

KOSIK: -- as the day goes on.

ROMANS: -- we will.

ROGIN: Thank you.

ROMANS: And, economic shockwaves tearing across the world in the aftermath of that U.S. Brexit vote. We're going to tell you whether the worst is over or more volatility to come.

[05:44:00]

(COMMERCIAL BREAK)

[05:48:10] ROMANS: All right, welcome back. It's time for an early start on your money this morning. Brexit gloom gives way to a Brexit bounce. Most Asian markets closed higher. European markets -- look at that. They're trading higher. Paris up almost three percent.

It's a small bounce, though, in the context of two days of huge losses. Make no mistake, the damage the last couple of days has been significant and historic. More than $3 trillion in global stock market wealth erased after that U.K. vote to exit the European Union.

Now, the fallout only just beginning. The U.K.'s perfect credit rating downgraded two notches by Standard & Poor's. The pound still near a 30-year low. Watch the U.S. stocks futures, though. They suggest a triple-digit bounce today. You could see the Dow up 100 points or so if this early trend holds this morning.

This morning, President Obama warning against economic and international hysteria. That's in an interview with NPR. I want to get more on the market reaction worldwide to Brexit. Joining me right now is CNN's Andrew Stevens, live from Hong Kong. And, Andrew, the president, in this NPR interview, basically said that those U.K. voters have hit the pause button on full European integration but he cautioned against taking it too far.

He gave Norway as an example. Norway, a strong ally of the United States -- Norway not in the European Union. At the same time, you have the U.K. treasury chief basically saying you absolutely will have to raise taxes, you absolutely will have the U.K. a core country because of all this. Bring us up to speed on where we are now in Brexit.

ANDREW STEVENS, CNN INTERNATIONAL CORRESPONDENT: Well, it is sort of fast-moving -- good morning to you, Christine -- about where we are. I'll start with the markets. We are seeing that bounce you're talking about but compare two percent up with 10 percent down on the previous two days gives you an idea of just how far and fast the markets are falling.

And the president talked about non-hysteria and, to be honest, we haven't really seen it in the markets. The traders you talk to are saying it has been an orderly sell-off. A sell-off of epic proportions, but still orderly, so not that sort of trying everything out just trying to scramble out of the markets. So, there is that in its favor.

[05:50:00] Where we go from here -- what the politicians are saying, you know, be calm and be reasonable, rational, and take it to the next level in a calm manner. Now, that next level is what we don't know at the moment. The British government has made it very clear that they're not going to trigger this article 50, which actually officially starts the ball rolling about getting out of the European Union.

And by the same token, the Germans are saying you've got to move very quickly. Angela Merkel saying the same things. So there's still big, big standoffs internationally about where we go from here. And I think what we're seeing in the markets today is what the traders have been talking about, Christine, volatility.

ROMANS: Yes.

STEVENS: Expect massive volatility in this, and this is what we're seeing. Up, down, up down. It's going to continue until we get some sort of clarity, and that clarity is not even on the horizon yet.

ROMANS: I know. Clarity -- I mean, ultimate resolution could take two years. Clarity on next moves could take days and weeks because we know markets hate uncertainty. It's the enemy of planning, it's the enemy of investment. Oh boy, buckle up for an interesting summer. Andrew Stevens, thank you, from Hong Kong this morning.

STEVENS: Thank you.

KOSIK: All right, let's take a look at what's coming up on "NEW DAY". Alisyn Camerota joining us now. Good morning, Alisyn.

ALISYN CAMEROTA, CNN HOST: Hi, ladies, great to see you. So, as you've been talking about all morning, the House report on Benghazi is expected to become public this morning. We have already gotten our hands on many of the documents to see what the conclusions are, so we will share the findings this morning, as well as the impact on Hillary Clinton.

Also, we will be speaking with a Republican on the committee who wrote his own scathing addendum to this huge report, so we'll be going through all of that.

Meanwhile, as you were just mentioning, markets are trying to stabilize after the Brexit vote and days of drops. We will be speaking with former British Prime Minister, Tony Blair, about what is next for the U.K., as well as former treasury secretary, Larry Summers, about how he believes this will impact the U.S. So we'll see you guys in nine minutes.

KOSIK: See you in a bit.

ROMANS: All right, thanks, Alisyn. The other big business story this morning, Volkswagen agreeing to the biggest fine ever, ever paid by an automaker. We'll tell you how big, who gets that money. An early start on your money, next.

[05:52:20]

(COMMERCIAL BREAK)

[05:56:30] ROMANS: All right, welcome back. A really busy morning, folks. Let's get an early start on your money. Brexit gloom gives way to a Brexit bounce. European markets higher. A small bounce after two days of big losses. Make no mistake, though. The damage the last couple of days has been significant. It has been historic. More than $3 trillion in global stock market value erased after that U.K. vote to exit the European Union.

And the fallout only just beginning. The U.K.'s perfect credit rating downgraded two notches by Standard & Poor's. The pound still near a 30-year low. Looking at U.S. futures here, they suggest a triple- digit bounce today if the early mood holds, but put that in context. Look at that three-month chart. Yesterday, the Dow lost 261 points, the lowest level in more than three months. Add in Friday's 610 point loss, you're talking about 900 Dow points wiped away since Thursday.

Volkswagen set to announce a record $15 billion settlement in its emissions scandal. That's according to sources familiar with the settlement. V.W. admitting it sold about 11 million cars with software designed to cheat emissions test. Fifteen billion dollar settlement -- that's much higher than the fines paid by other carmakers for wrongdoing. Now, it would cover consumer claims, it would cover fines. A federal court still has to approve that deal and the company faces additional civil and criminal investigations.

IKEA recalling millions of dressers that can tip over after the death of three children. These popular dressers can fall over if they're not fastened to the wall. This problem has been linked with several styles of dressers but it was the Malm chest and dressers that were linked to at least two of the deaths. Those are wildly popular products. They will be recalled now by IKEA.

KOSIK: All right, more details about the Benghazi report released this morning. "NEW DAY" begins right now.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESUMPTIVE PRESIDENTIAL NOMINEE: I've made mistakes. I don't anyone who hasn't.

UNIDENTIFIED FEMALE: The official report on the deadly Benghazi terror attack released.

UNIDENTIFIED FEMALE: It is kind of mind-numbing to really wrap their heads around the kind of bureaucratic mess.

TRUMP: Donald J. Trump is calling for a total and complete shutdown of Muslims entering the United States.

UNIDENTIFIED MALE: You said countries linked to Islamic terrorism would be blocked in terms of immigration?

TRUMP: Countries with great terrorism.

COREY LEWANDOWSKI, CNN POLITICAL COMMENTATOR, FORMER TRUMP CAMPAIGN MANAGER: It's about making sure the immigration policies of our country put Americans first (ph).

UNIDENTIFIED MALE: He's come up with this new policy. It's as idiotic as the first one. UNIDENTIFIED FEMALE: It was a victory for abortion rights supporters.

UNIDENTIFIED FEMALE: With this historic ruling, justice has been served and our clinics can stay open.

KOSIK: As controversy surrounds "THE DAILY SHOW's" reaction.

(END VIDEO CLIP)

UNIDENTIFIED MALE: This is CNN breaking news.

CAMEROTA: Good morning, everyone. Welcome to your new day. Victor Blackwell joins us today. Great to have you here. We have a lot of breaking news to get to right now because House Republicans will release their long-awaited report on the Benghazi terror attack today.

CNN exclusively obtaining a portion of that report which finds, among other things, that then-Secretary of State Hillary Clinton should have realized the risks.

CHRIS CUOMO, CNN HOST: Now, Democrats on the committee and Clinton's campaign are already blasting the report, so is there a smoking gun that could impact the 2016 race? That's the question and we're getting all the answers for you this morning.

We have complete coverage starting with CNN chief politicalcorrespondent, Dana Bash, live in Washington. Dana, the House created this select committee more than two years ago. What can you tell us about what's in this report?

BASH: Well, we can tell you what was in about 200-plus pages of what we were given exclusively.