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Early Start with John Berman and Zoraida Sambolin

Obama And George W. Bush To Meet With Slain Officers' Families; Dallas Gunman's Explosive Stockpile; 16 Arrested At Atlanta BLM Protest; Why Did Police Stop Philando Castile?; Trump Declares Himself "Law & Order" Candidate; Britain PM David Cameron Resigning As Theresa May Will Officially Take Over Wednesday Evening; Is the S&P 500 Too Hot? Aired 5:30-6a ET

Aired July 12, 2016 - 05:30   ET

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

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[05:31:00] JOHN BERMAN, CNN ANCHOR: President Obama arrives in Dallas in just hours, set to speak at the memorial for five slain police officers. Emotions running high in the wake of last week's attack.

ALISON KOSICK, CNN ANCHOR: New arrests overnight as thousands protest police violence in cities across the country.

BERMAN: Donald Trump declares himself the law and order candidate. The law and order candidate with a side of compassion. His new reaction to the police shootings and protests ahead. Welcome back to EARLY START everyone, I'm John Berman.

KOSIK: Good morning, I'm Alison Kosik. It's 30 minutes past the hour and in just hours an important moment for the nation to come together after a week of pain and tension. A memorial service in Dallas for the five officers murdered after helping protect a peaceful protest.

President Obama and former president George W. Bush are both set to speak and later visit with the victims' families. This, as hundreds attended an emotional candlelight vigil last night organized by the Dallas Police Association.

This morning, a probe into the Dallas gunman's plans and motives is still underway with new questions emerging. More now from CNN's Ed Lavandera in Dallas.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT: John and Alison, investigators continue combing through the community college building where Micha Johnson was killed early Friday morning after several hours of a standoff with police in the hours just after he had shot and killed five police officers and wounded seven more.

One of the things that investigators and detectives are taking a much closer look in trying to unravel is the bomb making explosives that was removed and found at Micah Johnson's house. We have been told by a federal law enforcement source that there was about three and one- half pounds of different kinds of explosive material that was found inside the home.

But what is not clear is what the intention of that was. Was this part of some bigger plan -- some other plan that Micah Johnson had thought about carrying about and didn't, or what exactly the intention was there. So that's what we're looking at.

Local law enforcement here in Dallas tells that this material was found in virtually every room in various parts of the house, so that is one of the things that investigators are trying to unravel, as well as those -- the mysterious initials R.B. that, according to the Dallas police chief, Micah Johnson wrote with his own blood in two locations inside that community college building -- John and Alison.

(END VIDEOTAPE)

KOSIK: All right, our thanks to Ed Lavandera there. And the Dallas shooter's parents now speaking out, saying his time in the Army changed him, turning him from an idealist who wanted to become a police officer into a disillusioned hermit. The gunman's father telling the media he was stunned by his son's actions.

(BEGIN VIDEO CLIP)

JAMES JOHNSON, GUNMAN MICAH JOHNSON'S FATHER: I don't know what to say to anybody to make anything better. I didn't see it coming.

(END VIDEO CLIP)

BERMAN: Overnight, new protests against police practices against the country. In Atlanta, police arrested at least 16 people after hundreds took to the streets protesting last week's police killing of two black men, one in Louisiana, the other in Minnesota. The protesters marched to the Georgia governor's mansion and they did meet with top Atlanta city officials. CNN's Polo Sandoval has more now from the scene.

(BEGIN VIDEOTAPE)

POLO SANDOVAL, CNN NATIONAL CORRESPONDENT: The city of Atlanta one of several across the country that are erupting with protests now for the fifth night in a row. We marched along with what were really hundreds of demonstrators, part of the Black Lives Matter movement. They made their way here to the Georgia state governor's mansion, calling for accountability, for transparency, calling for justice.

[05:35:00] Meanwhile, several police officers, not just here on the ground but also in the air, keeping a very sharp eye on the crowd and making sure that they at least keep their distance away from the governor's mansion.

I should mention that there is at least a good sign that there is some common ground here as we are now seeing Atlanta city officials, including Kasim Reed, the mayor and also the police chief, a native of this city, George Turner, also have conversations with some of these demonstrators, even asking them into what is a mobile command center that been set up here to talk about finding that common ground. So that is a good indication that things could potentially improve.

While these demonstrations have remained peaceful we have seen several arrests. While the NAACP chapter here in Atlanta -- or, here in Georgia -- has praised the reaction by law enforcement's level of restraint they also say that they are a little bit ?, we have seen our police officers reach that limit and actually make their way into the crowd and actually begin to detain individuals who have defied orders to remain on the sidewalk.

But, ultimately, despite at least 15,000 protestors that have already taken to the streets of Atlanta and only a few dozenarrests that is a good sign that there is at least that dialogue that continues in one several major American cities that are erupted with protests. Polo Sandoval, CNN, Atlanta.

(END VIDEOTAPE)

BERMAN: That's Polo Sandoval in Atlanta. In Memphis, the mayor and police held a town hall meeting where people spoke out for community policing and more funding for youth programs. In Brooklyn, more than 200 people gathered for an interfaith vigil honoring the five officers killed in Dallas and the victims of police shootings in Louisiana and Minnesota.

A third day of protests in Chicago. Up to 1,000 people on the streets there. The demonstrations did remain peaceful. And in Sacramento, hundreds marched to the state capital, many walking silently telling the reporters there is nothing to say that has not been said already.

KOSIK: New details from Minnesota this morning on the police shooting of Philando Castile. The lawyer for the officer who shot Castile tells CNN that a broken taillight was not the only reason officer Jeronimo Yanez pulled Castile over. The lawyer says Yanez also stopped Castile because he matched the description of a suspect in an armed robbery that was days earlier. Later this morning Castile's family will be holding a news conference to give their side of the story.

BERMAN: New developments in the fatal police shooting of Alton Sterling in Baton Rouge. Sterling's family is calling on police to release surveillance video taken from the convenience store where the incident occurred. The owner of the store now suing police claiming officers illegally detained him for four hours and confiscated his video security system without a warrant.

Baton Rouge police say the video will be turned over to the Justice Department. The Justice Department leading the investigation there. The district attorney in the case has not recused himself because he says he's friends with parents of one of the officers involved.

KOSIK: Donald Trump is declaring himself the law and order candidate with a side of compassion. What else he had to say about the police shootings and protests -- that's next.

[05:38:15] (COMMERCIAL BREAK) [05:42:20] KOSIK: Welcome back. Donald Trump calling for an immediate end to hostilities against police and declaring himself the law and order candidate. The presumptive GOP nominee also attacking Hillary Clinton as weak during a campaign appearance with New Jersey governor Chris Christie, one of those on the Trump short list for vice president. We get more now from CNN's Jim Acosta.

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JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John and Alison, Donald Trump will try out another potential running mate later today when he appears at a rally with Indiana governor Mike Pence. The Indiana governor, along with New Jersey governor Chris Christie and former House Speaker Newt Gingrich, appear to be the finalists for the vice presidential slot on the GOP ticket.

Christie and Trump both spoke at a veteran's event in Virginia Beach. That was where Trump ended the pause in political attacks since the police shooting in Dallas and dubbed himself the candidate law enforcement can trust. Here's what he had to say.

DONALD TRUMP (R), PRESUMPTIVE REPUBLICAN NOMINEE: I am the law and order candidate. Hillary Clinton, on the other hand, is weak, ineffective, pandering, and as proven by her recent email scandal which was an embarrassment, not only to her but to the entire nation as a whole. She's either a liar or grossly incompetent. Personally, it's probably both.

Not only am I the law and order candidate, but I'm also the candidate of compassion. Believe it -- the candidate of compassion. But you can't have true compassion without providing safety for the citizens of our country. Every kid in America should be able to securely walk the streets in their own neighborhood without harm.

ACOSTA: Mike Pence, who is running for reelection as governor, has until Friday to make up his mind. A state law bars him from seeking two offices at once in Indiana. But don't count of Chris Christie. One source who is familiar with the selection process said Christie has been fully vetted for the vice presidential slot -- John and Alison.

(END VIDEOTAPE)

BERMAN: All right, thank Jim. We've got a big day ahead in politics. Let's talk about it with CNN politics reporter Eugene Scott. Eugene, thanks so much for being with us.

KOSIK: Good morning.

EUGENE SCOTT, CNN POLITICS REORTER: Thank you.

BERMAN: I want to start with what we're going to see today. We're going to see everybody today, but President Obama goes to Dallas to address that memorial service for the five slain police officers. This comes at the same time that Donald Trump is calling himself the law and order candidate. Hillary Clinton's been talking about it all week.

[05:45:00] And it seems that everyone right now involved in leading the country or trying to lead the country going forward is trying to figure out how to discuss these issues.

SCOTT: Yes, very much so. As you know, these issues are not new. They have been in the national headlines for a couple of years. But last week was certainly a turning point when we saw back-to-back incidents that definitely commanded national political leaders' attentions, including those from the campaign.

This is a concern from voters on both sides of the aisle and even those that aren't that engaged politically. People really want to know what can be done to improve relationships between law enforcement and black communities and other communities that feel marginalized.

KOSIK: And today we're going to see Hillary Clinton and Bernie Sanders on one stage together because he is expected to go ahead and step down -- step down from his campaign and support Hillary Clinton. Is it believable enough for his voters that he's actually standing behind her, and does Trump have a chance of winning over those Sanders voters?

SCOTT: There certainly are people who are not supporting Hillary Clinton who would look at the Trump campaign as an alternative, but I think that number, for the most part, has been exaggerated. If you were truly a progressive and backed Sen. Sanders I'm not quite sure that you could look at the policy proposals that Donald Trump has put forward and get on his page.

But ultimately, Hillary Clinton is hoping that this will benefit her. That this will reinforce the belief or the idea that she is best person to continue not only Obama's legacy, but move the country towards progressivism. And Bernie Sanders supporters, ultimately, that are supporting her reluctantly, are hoping that she is, too.

BERMAN: All right, Eugene, big question. Who's Donald Trump going to pick to be his running mate? Today he's with Mike Pence in Indiana at an appearance tonight. A lot of people think the smart money is on Mike Pence. This, despite the fact that Chris Christie met with lawyers over the weekend, and Newt Gingrich is still in the running, and there's a general who's a Democrat who's in the running. But, hmm, all eyes on Mike Pence today.

SCOTT: It's interesting, I so wish I knew. I so wish I knew so I could break that but as I was looking at the toss-in before me, I personally would put my bets on Mike Pence at this moment, but that could be just because of this momentum and the increased interest. But we will find out before Friday, as you mentioned. He has to make a decision. He cannot run for governor and vice president at the same time.

But we did see at cnnpolitics.com that Indiana Republicans are preparing for someone else to enter into the gubernatorial race. So it seems like even on the ground some people believe that Mike Pence is going to make the leap. KOSIK: OK, something worth mentioning, reading it in "The Wall Street Journal" today. Eight years ago when there was a different presidential race going on Donald Trump used to do these syndicated, kind of commentary on the radio. Interesting that he basically said -- or he said that Hillary would make a great president. I want you to listen to some of the audio and we'll talk about it after the clip.

(BEGIN VIDEO CLIP)

VOICE OF DONALD TRUMP (R), THEN-BUSINESSMAN/REALITY STAR: Hillary Clinton said that she'd consider naming Barack Obama has her vice president when she gets the nomination, but she's nowhere near a shoe- in. For his part, Obama said he's just focused on winning the nomination, although at least one member of his team said Clinton would make a good vice president. Well, I know her and she'd make a good president or a good vice president.

(END VIDEO CLIP)

KOSIK: Look, everybody knows that Donald Trump and Hillary Clinton were friends before they kind of started mud wrestling in this presidential race, but this is a little -- how do you come back from something like this? He's running against her, obviously.

SCOTT: Well, this hasn't been the biggest issue in the past for getting his supporters to get behind him. As we know, this is not the first time he has spoken positively of Hillary Clinton. This is a continuation of that. But it just does leave a lot of questions. What happened between 2008 and 2016 that led him to view her so differently? No one seems to really know.

BERMAN: Eugene Scott, thanks so much. Have a great Tuesday.

KOSIK: Thanks very much.

SCOTT: You, too.

BERMAN: Let's take a look at what's coming up on "NEW DAY". Poppy Harlow joins us now. Good morning, Poppy.

KOSIK: Good morning, Poppy.

POPPY HARLOW, CNN ANCHOR, "NEW DAY": Good morning, Alison. Good morning, John. A lot ahead on "NEW DAY". We focus, of course, today on the city of Dallas, a city coming together as the president prepares to console yet another city reeling from gun violence. Just step back for a moment and consider this. This is the 11th time that this president has traveled to a city to try to comfort the people after a mass shooting -- 11 times during his term.

Today's memorial comes as hundreds of people gather and remember the five fallen officers last night at the vigil. This morning, we will spoke on "NEW DAY" to religious leaders, city leaders. Also Dallas' police chief sending a message -- a very strong message in a press conference yesterday to a divided nation. [05:50:55] And on the political front, as Hillary Clinton prepares

for her first rally with former rival Bernie Sanders new comments, as you guys were just talking about, from Donald Trump praising. Effusive praise for Hillary Clinton. What he once said about the possibility of a Clinton-Obama presidential ticket. We'll dissect it all ahead -- guys.

KOSIK: All right, sounds great. Thanks, Poppy.

The S&P 500 is sitting at an all-time high but there are some serious tests ahead for the market. I'm going to tell you what could actually stop the rally when we get an EARLY START on your money. That's coming up next.

[05:50:30] (COMMERCIAL BREAK)

[05:54:35] BERMAN: By the close of business tomorrow the United Kingdom will have a new prime minister, and for just the second time ever it will be a woman. David Cameron announced he's going to step down this, not October as originally planned. Now, this paves the way for Theresa May to take the reins at 10 Downing Street.

CNN's Max Foster live in London to explain to us just a lightning quick pace of events in London -- Max.

[05:55:00] MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: Well, she was meant to have three months to get ready for a new government. In the end, she's only had 48 hours. So, today Theresa May is working with various other cabinet ministers and people outside the cabinet, as well, to try to form a government. A huge amount of pressure on her, let alone the fact that she's got to move all her stuff into Downing Street by tomorrow, but David Cameron's got to get out.

And, I have to say she does seem to have quite universal support across the Conservative Party, but also in the British media. And a lot being made of the fact -- John, it has to be said that she is the first female prime minister in 26 years as the "Financial Times" puts it.

"The Sun" being slightly more direct though. Theresa May is very famous for her fancy shoes -- kitten heels, I'm told, they're called and that's the headline in "The Sun" today. Very supportive of her but making the point that all of these very senior male conservatives are vying for positions but she's very much in control.

Also, "The Daily Mirror" pointing out that Theresa May is going into this position without an election. She's just taking over from David Cameron. So they're making a point there, John, that there needs to be a snap election.

So she has the authority she needs to take Britain through a very tough time in political economy, really, because Britain's having to leave the European Union and that's a huge pressure. She's going to have to oversee it and she should have a public mandate according to "The Daily Mirror" and also leading opposition politicians, as well. BERMAN: Now, she gave tepid support to the remain campaign during the election, but right now she's made clear she's going to leave the country to the Brexit.

FOSTER: She is. Brexit means Brexit, she said. But she's also been very tough on immigration over the years, as well, and that is really central to the Brexit campaign. So she does seem to have authority. She's going to have to appoint, though, someone very senior from the leave campaign into a senior job today in the cabinet, so that's going to be very interesting to see how that plays out.

BERMAN: Max Foster in London. Thanks so much, Max.

KOSIK: Let's get an EARLY START on your money. Dow futures are pointing to a higher open, the average just 85 points away from a new record high. European stock markets, they are up. Shares in Asia posting gains overnight. Oil rising, as well.

Look at the S&P 500. It's at a record high and stocks in these industries helped put it there. Utilities and communications both up more than 21 percent in 2016. Energy stocks posting a 13 percent rise after getting hammered earlier in the year as crude oil prices crashed. The consumer staple sector, that's up more than 10 percent.

So, big question -- can anything stop the rally? Well the market has recovered from that crash in oil and worries about China earlier in the year. And the Brexit vote that, yes, had sent stocks tumbling but even those losses are gone now.

There are some hurdles ahead, don't get too comfortable. Earnings season is just beginning this week and the results are expected to be weak. So eventually the Federal Reserve will go ahead and hike interest rates, though it's not likely to happen until this fall or even next year. And finally, stocks are getting expensive and some analysts are warning that will lead to a big sell-off. But, then again, in the end no one has a crystal ball.

BERMAN: Don't rain on my parade this morning. All right, President Obama arrives soon in Dallas set to speak at the memorial for five slain police officers. It's a big moment for this nation to come together. "NEW DAY" starts now.

(BEGIN VIDEO CLIP)

JOHNSON: I love my son with all my heart. I hate what he did.

DAVID BROWN, DALLAS POLICE CHIEF: We're asking cops to do too much in this country so the government needs to step up and help us.

(Protestors)

JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: There's nothing inconsistent with supporting the police and acknowledging the problems.

HILLARY CLINTON (D), PRESUMPTIVE PRESIDENTIAL NOMINEE: This is deeply troubling.

PROTESTORS: Who do you serve, who do you protect?

TRUMP: I am the law and order candidate.

UNIDENTIFIED MALE: Tell us what you stand for. People were literally dying in the street.

PROTESTORS: Black lives matter.

UNIDENTIFIED MALE: I don't know why this has to be us against them. This has to stop.

(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's Tuesday, July 12th, 6:00 in the east. Alisyn is off, Poppy Harlow here with me again. Good to have you.

HARLOW: It's good to be with you.

CUOMO: A big headline for you this morning. In just a few hours President Obama is going to head to Dallas to speak at a memorial service for the five Dallas police officers killed in that ambush attack. The president rejects the idea that the country is divided on race and he's going to make the case in an effort to heal a heartbroken city and nation.

HARLOW: And he will do that after, once again, hundreds gathered last night for a beautiful candlelight vigil to honor fallen officers there in Dallas. The city's police chief delivering, yet again, such a powerful message to his community and to protestors, trying to help ease those tensions. We have it covered the only way CNN can.

Let's begin this morning with Victor Blackwell in Dallas. Good morning, Victor.

VICTOR BLACKWELL, CNN ANCHOR: Poppy, good morning to you. The White House says President Obama is intensely frustrated over the conversation or the inability to have a rational conversation about gun control as he comes here. But, of course, this visit is in large part about healing this city.