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Early Start with John Berman and Zoraida Sambolin

Source: Trump Staffers Frustrated By Candidate; Clinton Campaign Rakes in Big Money & Endorsement; Zika Virus Spreads in Miami; Olympic Torch Arriving in Rio. Aired 4:30-5a ET

Aired August 03, 2016 - 04:30   ET

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

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[04:30:54] JOHN BERMAN, CNN ANCHOR: What on earth went on overnight? Donald Trump now refusing to endorse fellow Republicans, including Paul Ryan, as sources revealed mounting frustration from staffers, key staffers, inside the Trump campaign.

CHRISTINE ROMANS, CNN ANCHOR: And a new prominent Republican CEO backing Hillary Clinton, as her campaign rakes in a record fund- raising.

BERMAN: New cases of the Zika virus in Florida. Mosquitoes now spreading Zika to new parts of that state.

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

ROMANS: A lot going on while you were sleeping, I'm Christine Romans, 4:31 in the East here.

Breaking news this morning: Donald Trump's campaign staff said to be increasingly frustrated as their candidate gets repeatedly sidetracked that pull him off message. Republican sources tell CNN that campaign staffers, quote, "feel like they're wasting their time." Among them, campaign manager Paul Manafort.

The distraction cited included Trump's fight with the Gold Star parents of a Muslim American army captain, his unprecedented snub of high profile leaders.

This morning, Trump is refusing to endorse House Speaker Paul Ryan and his primary campaign. He's actually heaping praise on Ryan's underdog opponent. This is on top of new criticism by Trump of Senator John McCain, and that on top of other high profile Republicans coming out overnight saying flat out, they will vote for Hillary Clinton.

CNN's Jason Carroll has the latest.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN NATIONAL CORRESPONDENT: This is really a stunning development. We'll have to see how this plays out across the GOP landscape. Donald Trump saying in an interview with "The Washington Post" that he's not ready to endorse House Speaker Paul Ryan in his upcoming primary election.

Trump saying, quote, "I like Paul, but these are horrible times for our country. We need very strong leadership. We need very, very strong leadership. And I'm just not quite there yet. I'm not quite there yet."

If that language sounds familiar, it's pretty close to the same language Ryan used when he waited to endorse Trump.

Trump also saying he's not supporting Senator John McCain in his primary bid in Arizona. Trump saying "he has done a good job for the vets, and I always felt he should do a better job for the vets. So, I've always had a difficult time with John for that reason because our vets are not being treated properly."

Trump did not stop there. He also took aim at Senator Kelly Ayotte, calling her a weak and disloyal leader in New Hampshire.

For his part, Trump involved in another controversy, this after he talked about a Purple Heart recipient at his rally yesterday in Virginia.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Something very nice just happened to me. A man came up to me, and he handed me his Purple Heart.

Now, I said to him, I said to him, is that like the real one? Or is that a copy? And he said that's my real Purple Heart. I have such confidence in you.

And I said, man, that's like -- that's like big stuff. I always wanted to get the Purple Heart. This was much easier.

CARROLL: Trump already under fire for comments he made about the family of a slain Muslim U.S. soldier Humayun Khan. Trump telling a local reporter late yesterday, he has no regrets about anything he has said about Khan's family.

Both Ryan and McCain did release statements defending the Khan family. It should also be noted that Chris Christie also spoke out in defense of the Khan family. Clearly, this is something that so far has not set well with Trump.

(END VIDEOTAPE)

BERMAN: All right. That was Jason Carroll.

I want to talk more about what's going on in the last 24 hours, but it's even 24 hours. The last six hours in the Trump campaign.

Joining us is CNN senior media correspondent, Brian Stelter, host of CNN's "RELIABLE SOURCES".

Brian, great to have you with us.

CNN is reporting, both John King and Dana Bash reporting they're hearing from Republican sources who know what's going on inside the campaign that there's turmoil, that there are staffers in Trump world right now, beside themselves, because they do not feel as if Trump is listening, that what he is doing is self-destructive.

And just to review what's happened since the Republican convention -- I mean, in the last ten hour, Donald Trump refusing to endorse Paul Ryan and John McCain. He's in a feud with the Gold Star parents, he's suggested women should quit their job if sexually harassed. You know, he said that Russia is not necessarily in Ukraine or maybe is, and then there was during the Democratic Convention, called on Russia to hack Hillary Clinton's e-mails.

And you get a sense this is only the beginning. There was the Purple Heart thing yesterday. There was, you know, sending the crying baby out of the room.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: We don't have room on the graphics for all of these examples.

BERMAN: When people in campaigns leaked like this, there's a reason and there's something going on.

STELTER: Yes. That was my takeaway overnight. That this campaign is leaking like a sieve in a way we haven't seen before. There have been other periods of turmoil, no doubt, inside the Trump campaign. We've seen departures in the past, people hired and then fired very quickly.

But this feels very different, because it's going all the way to the top, all the way to Paul Manafort, with even Manafort frustrated by Trump's behavior. And some of what Trump is doing is very intentional. You know, for the last year, we've always wondered how much of this is strategic and how much of this is unintentional.

What we know in "The Washington Post" interview, where he refused to endorse and support Paul Ryan. That was conscious, he actually asked the reporter to come back around to that question to emphasize the point more loudly.

ROMANS: So, you think that was really intentional.

STELTER: That was a strategic choice, saying I'm not quite ready to support or endorse Paul Ryan in this primary.

By the way, that's almost the same line that Paul Ryan used months ago, saying he wasn't quite ready to endorse Trump.

ROMANS: I think, and you can see there, there's Donald Trump about that in a "Washington Post" --

STELTER: I'm not quite there yet.

ROMANS: Yes, so we've heard that before. So, he's now backing some prominent Republicans.

Now you have some prominent Republicans who are backing Hillary Clinton. You've got Sally Bradshaw, who's very close tied-in Bush aide. You've got Meg Whitman now, the CEO of Hewlett-Packard, who has actually raised money and given her money to Republican candidates and actually ran for governor herself in California as a Republican. What she has to say, I mean, she just lets loose on Donald Trump.

What does this mean, Republicans for Hillary Clinton?

STELTER: We heard about this organization months ago, rank and file, especially among women Republicans. Now, it's starting to reach the top. We're having a trickle-up effect where we're seeing more prominent Republicans starting to say these things.

Meg Whitman is not going to be the last. It's who's going to be the next? But it does seem to me like what this news cycle that we're seeing, we're seeing an intentional sort of series of announcements by prominent Republicans maybe just continuing to reach the higher tier of the party.

BERMAN: You can see in "The New York Times", Alex Burns has a piece in "The New York Times" would suggest there are rumblings in the Republican world that bigger names could come out and say, "I'm not voting for Donald Trump. I'm voting for Hillary Clinton." People within CNN have heard the same thing.

So far, you know, it hasn't happened, the mass wave that people thought with Judge Curiel, that controversy was going on, it hasn't happened yet. It hasn't happened this week. But, you know, when you see Sally Bradshaw, Maria Comella and Meg Whitman, it is getting bigger and bigger. And it makes you wonder if at some point, this week, the dam is going to break. Reince Priebus, CNN's reporting has Reince Priebus spoken to Donald Trump several times this week, expressing the concern that this is serious.

Perhaps, you know better than me, John. Perhaps you don't know when a campaign has collapsed until after it's collapsed. You don't want to know that a party is broken down and been reborn until after it's been reborn. We might be at that moment where we look back and say, this was the difference-maker.

The Khan family speaking out for days on end, and Donald Trump responding in insensitive ways, that that was the difference-maker. After a year's worth of controversies that didn't seem to hurt Donald Trump.

ROMANS: You talked to Khizr Khan last night, he's been on television all the way through to Anderson Cooper. You spoke with him last night, now he's done.

STELTER: As he was taking his makeup off, he said, "I'm done with TV interviews now. Enough is enough. He said he feels he's spoken strongly enough. He said what he needs to say on behalf of his son. He said, I can continue to be attacked on the Trump side. But I don't want to have any part of it. I want to maintain my dignity.

So, for now, at least, he's heading home. He said he's going to Arlington National Cemetery to see his son's grave site and then he's heading home. He said he will continue to speak out throughout this campaign season, encouraging people to register to vote and encouraging people to vote. He said he's very proud that that Constitution he pulled it out of the his pocket is now selling like hot cakes on Amazon.

ROMANS: I know.

STELTER: But he's done for now in terms of doing TV interviews. Perhaps, you know, he didn't it say it this way, but perhaps a mission accomplished healing for him that his message was so loudly heard by the country.

BERMAN: It's interesting. Donald Trump was asked about this back and forth he's had wit Khizr Khan since last Thursday. Donald Trump was asked if he regrets that he ever let himself be dragged into it. Listen to what Donald Trump told a local affiliate.

(BEGIN VIDEO CLIP)

INTERVIEWER: Even if you're certain that you're right and they're wrong, do you regret at all engaging in this back and forth with the Khans?

TRUMP: I don't regret anything. I said nice things about the son, and I feel that very strongly. But, of course, I was hit very hard from the stage, and, you know, just one of those things. No, I don't regret anything.

(END VIDEO CLIP)

[04:40:06] BERMAN: Of all the answers that the campaign staff wanted to hear and that the RNC wanted to hear, that is not the answer. They would have liked to see some sort of acknowledgement or some sort of pullback. But we've never see that from Donald Trump, so why would he start now?

ROMANS: So fascinating. The whole thing is fascinating.

So, you think the Khan chapter is over. I mean, notwithstanding sort of the controversy about the Purple Heart where Donald Trump said, somebody came up to him and said, wow, I've always wanted a Purple Heart. This is an easy way to get one.

Vets are upset about that.

STELTER: Yes, particularly with Mr. Khan, seems to me like he's withdrawn. He's going to let his comments speak for themselves. There are many others, for Donald Trump, besides this family's testimony, we're seeing that with his leaks from the campaign and from places like that.

It would seem, though, what is it that is so appealing about Donald Trump to his many supporters, is that he never backs down from a fight. It's that when he's challenged, he fights back, punches back. He's even tougher than ever. You saw that on the reality show "The Apprentice." In some ways it's the ultimate reality show for Donald Trump. BERMAN: The one other Romans numeral, 97, which is 97 days to the

election which say long time. It's a long time.

STELTER: It's a long time. This is not the season finale by any means.

And if we know anything about Donald Trump, a reality star, there's always a twist or two or three or four twists to come.

BERMAN: Brian Stelter, great to have you with us this morning. Thanks so much.

ROMANS: All right. Speaking of Romans numerals, time for an early start on your money.

BERMAN: I don't get a numeral. I can like jump all over your Romans numerals.

ROMANS: Berman, Berman, Berman.

Donald Trump said he pulled his money out of the stock market and warns of very scary scenarios ahead for investors. He made those remarks on Fox Business Network. So is that sound advice for your money? The Dow is on a seven-day losing streak. But a drop is, it's only 254 points over that span.

The recent drop in oil prices plus a string of record highs. Record highs over the past two weeks have investors feeling, I don't know, a little skittish. And Goldman Sachs warned earlier this week, they warned investors to stay out of stocks for the next three months.

BERMAN: What?

ROMANS: July was on fire, right?

And then there's this, the bull market, since the lows of March 2009, the second longest ever. The S&P 500 is up more than 200 percent. That's the bull market since March 2009. Stocks have overcome big shocks in Europe, stolen growth in China, a crash in oil prices, among a lot of other big market movers.

So, anytime you would bet against the stock market over the past seven years, you've lost. So, some see that as a reason to get out now, right? If you've had such a long run.

Bottom line, diversify with your own risk tolerance and have a strategy based on your financial needs, boring, boring, boring. But diversify, diversify --

BERMAN: July is on fire was my favorite Alice Keys song, by the way.

ROMANS: July is on fire.

BERMAN: It is.

Zika virus coming in new areas around Miami. There is growing concern, unprecedented health warnings already issued. We'll have the latest, next.

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BERMAN: Health officials confirm a new case of the Zika in South Florida. This brings the number of infections to local mosquitoes to 15. Local mosquitoes, again, people caught it in Florida. The latest case is outside of the Miami-Dade County neighborhood where active transmission has been identified. The state health department will now begin aerial spraying in a ten-mile area in an effort to contain the virus but there is concern about how effective this will be.

Let's get more now from CNN's Nick Valencia in Miami.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN CORRESPONDENT: The Florida governor and the CDC both say to expect even more cases of the Zika virus to be locally transmitted in Miami. Part of the issue, according to the CDC, is that mosquitoes in this area may be resistant to the insecticides that are being sprayed by health officials. Here on the streets in Wynwood, which is ground zero for the local transmission, just north of downtown Miami, reaction is mixed even those who must be most concerned, pregnant women.

UNIDENTIFIED FEMALE: We recently went on vacation. We didn't travel to the Caribbean because of the Zika, just so I wouldn't get exposed to them. But I mean, I live here. I'm not going to move. So -- and I'm not going to stop living my life. So (INAUDIBLE)

UNIDENTIFIED MALE: I wasn't aware of it jumping to 14. I know this is ground zero for the initial four cases.

UNIDENTIFIED FEMALE: I think that's completely nerve-racking. It's scary. I don't know what to say about it. It's just -- I don't know what to do.

VALENCIA: In an interview earlier with the director of the CDC, Dr. Tom Frieden, I was told that that reaction area is not in the cases that have been announced here so far in South Florida. Some of them were discovered by random door-to-door community surveys. State officials and the CDC has a team here. They expect to continue those surveys in the days ahead.

(END VIDEOTAPE)

ROMANS: All right. Nick Valencia, thank you for that.

The Delaware Supreme Court declaring the state's death penalty law is unconstitutional. The court ruling that judges rather than juries are given too large a role in imposing death sentences and it violates the requirements laid out by the U.S. Supreme Court. The state can appeal to the decision, but legal experts say that's unlikely. Capital punishment has already been abolished in 18 other states.

BERMAN: Authorities in Central California investigating the deadly crash of a charter bus that went off a highway and into a signpost. Five people were killed and more than a dozen others injured. The pole sliced the bus nearly in half. Police have been unable to speak to the driver because of his injuries. The bus company has been cited for more than 40 violations over the past two years, seven of them specifically for the bus that crashed.

ROMANS: Also in California, officials are blaming an illegal campfire for setting off a deadly wildfire. Authorities say the fire was apparently built around July 22nd and then abandoned in the state park.

[04:50:00] The person or persons responsible for the blaze could face criminal and civil penalties. The flame scorched more than 40 acres of land in the Big Sur area. A bulldozer driver died in the fire and at least 57 homes were destroyed.

BERMAN: Some heavy rain ahead for the Midwest plain in southwest. Meteorologist Pedram Javaheri has more.

(BEGIN VIDEOTAPE)

PEDRAM JAVAHERI, AMS METEOROLOGIST: John and Christine, looking at the northeast, mild temperatures in store across this region, a little bit of a northerly flow in place, while we have an active weather back across the northern plains. Some monsoonal thunderstorms around the southeast helping with the drought situation, of course, the fire threat across parts of new Mexico and on into Arizona. If you look at this, 6 million people in a flood watch zone. In the Phoenix metro area, unfortunately, drier there, and the rainfall will help the firefighters across that region.

And in the gulf or Caribbean, where we have Earl sitting in place. Forecast to become potentially a weak category 1 hurricane. Making landfall around Belize Thursday morning. Again, not going to be a main player for the United States, maybe some isolated storms in southern Texas later into the weekend.

But here we go, high pressure setting up shop across the north gulf. As it does, we get a nice southerly flow here, temperatures want to warm up dramatically with extreme humidity as well in place. Jackson, Little Rock will be in upper 90s. Low 100s for the forecast high today, guys.

(END VIDEOTAPE)

ROMANS: All right. Pedram, thank you for that.

Fifty-one minutes past the hour.

One of the nation's largest health insurers could be bailing on Obamacare. And it's not alone. We get an early start on your money next.

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[04:55:48] BERMAN: Just a few hours, the torch will arrive at its final destination in Rio de Janeiro, the site of the 2016 Summer Games. The torch is expected to circulate over the next two day leading up to the opening ceremony that is Friday night. The first Olympic events actually begin today.

CNN's Christina Macfarlane live in Brazil with the preview.

Good morning, Christina.

CHRISTINA MACFARLANE, CNN CORRESPONDENT: Good morning, John.

Yes, all the hype, all the buildup to set the Olympic Games and finally, the sports begins today. What we're going to see today is the women's football, the group status indeed to get under way. The first match, the kickoff will be Sweden against South Africa.

And later in the day, you're going to see the reigning World Cup champions, the USA take on New Zealand. Football the only event taking place across the country making use of those venues set up for the 2014 World Cup. I can tell you, the organizers are going to be very keen to shift the focus to the sport, because this has been an Olympic dominated by bad press like none other. Over the Zika virus, we've seen a rock in the world's top sports including the top four golfers in the world.

And concerns, of course, over the water. The pollution in the bay areas and that could be an issue when the sailing and water events get under way on Monday. Even though the organizers say that the water is at an internationally acceptable level. And just in the past 24 hours, you mentioned the Olympic torch making its way here -- well, that has been hit by protesters attempting to slow down for the third time on its journey.

So, I think everyone looking for the sports to get under way and perhaps a bit of fun to be had as well.

BERMAN: All right. Christina Macfarlane for us in Brazil -- big days and days ahead there -- thanks so much.

ROMANS: All right. Big day your money today. The Dow is amid a quiet seven-day losing streak. And we could have more losses at the open. Dow futures you can see right there down a bit.

Stock markets in Europe are lower. Asian stock markets are falling overnight, despite a big stimulus announced in Japan. Oil's drop is behind the losses. Oil back below $40 a barrel, trading right now kind of flat.

OK. This story really caught my attention. Job seekers in Massachusetts will no longer have to divulge their salary history for perspective employers during an interview. This new law is ending a gender pay gap making it illegal in the state to base a job on gender.

It also protects paid family leave for pregnancies, taking care of sick relatives. Employers will have to wait until after they extend a formal offer than include compensation to ask about salary history. And the law goes into effect in July next year, 2018, I guess. It also allows workers to openly discuss their salaries without retaliation from their employer.

One of the largest health insurance companies is reconsidering its participation in Obamacare. Aetna says it is cancelling plans to expand in five states next year. The CEO blames new forecast for its current products and significant structural challenges on public exchanges.

One main reason: cost. And it currently operates in 15 states and expects to lose $300 billion on that business this year. Other health care giants including United, Humana and others are scaling back their Obamacare insurance as well.

It turns out what some of these companies are finding is that the new people coming in on these exchanges, they are sicker and consuming more health care than they thought which raises their cost. So, that's what they're dealing with right now.

BERMAN: Preexisting conditions.

ROMANS: That's right.

BERMAN: One of the problems with Obamacare.

All right. EARLY START continues right now.

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BERMAN: "They feel like they're wasting their time", that word from Trump staffers telling CNN there is growing frustration in the campaign and with their candidate for the things he just keeps on saying.

ROMANS: Hillary Clinton with that prominent new Republican endorsement and a record month in fund raising.

BERMAN: The Zika virus now spreading in Florida, with new cases reported in a different Miami neighborhood.

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

ROMANS: And I'm Christine Romans. It is Wednesday, August 3rd. It is 5:00 a.m. in the East. Let's begin with the breaking news this morning.

Donald Trump's campaign staff said to be increasingly frustrated as their candidate gets repeatedly sidetracked by battles that pull him off message.