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Early Start with John Berman and Zoraida Sambolin
Trump Digs in on Claims Obama Founded ISIS; Pressing Trump to Release Tax Returns; Going for Gold in Rio; Aired 4:30-5a ET
Aired August 12, 2016 - 04:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[04:30:02] RYAN NOBLES, CNN ANCHOR: Now the head of the RNC is concerned that Trump's campaign could cost the party in other races. What Trump has to say about it coming up.
ALISON KOSIK, CNN ANCHOR: Hillary Clinton facing growing accusations of pay-to-play over ties between her State Department and her charitable foundation. How close did Clinton come to a corruption probe?
NOBLES: And Team USA racking up the hardware. Michael Phelps with another gold medal and two American women are setting a new bar. We're live in Rio with a recap.
Good morning. Welcome back to EARLY START. I'm Ryan Nobles.
KOSIK: Good morning. I'm Alison Kosik. Happy Friday. It's 30 minutes past the hour. And Donald Trump doubling down this morning on his claim that President Obama founded ISIS. He's really digging in on this. Rejecting conservative radio host Hugh Hewitt's attempt to get Trump to adopt a moderate sounding clarification of the founder accusation. This as Republican Party chairman Reince Priebus calls Trump, trying to get him to tone down his rhetoric in the interest of down-ballot GOP candidates.
More now from CNN's Jim Acosta with the Trump campaign in Florida.
JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Alison and Ryan, Donald Trump once again referred to President Obama as the founder of ISIS at a rally outside of Orlando. Trump said that the president bears responsibility for the rise of the terror group because he did not leave, what he called, a relatively small force in Iraq. But that runs contrary to what Trump told CNN back in 2007 when he said that the U.S. should declare victory and leave.
Here's more of what Trump had to say at this rally outside of Orlando.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Barack Obama is the founder. Hey, if he would've -- folks, we should have never been in Iraq. We were going to destabilize the Middle East. I said it. I was a civilian, nobody cares. I was a civilian, nobody cares. We should have never been in -- they should have understood it. They made a mistake, but we should have never ended it the way they ended it. By ending the way he ended it, and he got everybody out and he let them know when, and we're leaving, and they just sat back. They just sat back and they went in.
(END VIDEO CLIP)
ACOSTA: Even before Trump started addressing the crowd at this rally there was an incident inside the venue. Three men were holding up a Confederate flag and refusing to take it down for 15 to 20 minutes. Eventually campaign staffers and local law enforcement officials convinced the men to take the flag down. So far no reaction from the Trump campaign -- Alison and Ryan.
NOBLES: Jim, thank you.
More now on that chat where Reince Priebus reportedly warned Trump about the damage he can inflict on down-ballot candidates. Something that has leading Republicans very worried. 75 of them signing a new letter urging the party to shift its resources away from Trump and toward at-risk House and Senate candidates. Trump says such a shift never came up in his talk with the party chairman.
(BEGIN VIDEO CLIP)
TRUMP: But I'm the one that's funding. I'm the one that's raising the money and other people are getting to use the money that I raise, so all I have to do is stop funding the Republican Party. I'm the one raising the money for them. In fact, right now I'm in Orlando. I'm going to a fundraiser for the Republican Party, so if they want to do that they can save me a lot of time.
(END VIDEO CLIP)
NOBLES: Now sources familiar with the call tell CNN that Priebus never threatened to shift party resources. And that it's too early to make that decision anyway. But those sources say Priebus did underscore the need for Trump to take public criticism from vulnerable Republicans without lashing back. Priebus reportedly telling Trump those candidates may need to put some daylight between themselves and the controversial top of the ticket, and that's just the way politics works.
KOSIK: Donald Trump adding nine new members to his economic advisory council. Eight of them women. Just a week after he faced harsh criticism for unveiling an all-male economic panel. Trump's announcement coming coincidentally just as Clinton took the podium in Detroit to deliver her economic address. The speech itself light on new policy proposals with mostly a rebuttal to Trump's economic address from Monday.
Clinton blasted what she called the Trump loophole. Cuts to business taxes that she said would mainly benefit Trump and wealthy people like him. This as a source tells CNN that Clinton and running mate Tim Kaine will increase pressure on Trump to release his taxes by soon releasing their own returns.
CNN's JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Ryan and Alison, Hillary Clinton calling again on Donald Trump to release his tax returns. Something he has refused to do. Of course, he is the only presidential nominee since Richard Nixon to not release any tax returns.
I am told by people close to her campaign she could release her returns as early as today, her 2015 returns. Of course that makes a library of some 38 years of tax returns the Clintons have filed. Their average tax rate is basically around 30 percent.
[04:35:03] We will find out later today if she releases them today and what her tax return rate was in 2015. But Tim Kaine also is scheduled to release some 10 years of tax returns.
The Clinton campaign wants to keep pressure on Donald Trump to release his returns or highlight the fact that he is not. It is all part of their argument to paint him as a wealthy man who is in it for himself. Part of her campaign message she made Thursday in Michigan.
(BEGIN VIDEO CLIP)
HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Now compare what Trump says. Now there is a myth out there that he will stick it to the rich and powerful because somehow he's really on the side of the little guy. Don't believe it.
(END VIDEO CLIP)
ZELENY: And that is a central part of Hillary Clinton's message trying to point out to working class Americans that she would be a better fighter for them. Donald Trump as she says is in it for himself and the wealthy -- Ryan and Alison.
NOBLES: Thank you, Jeff.
Clinton critics weren't the only people asking questions about the relationship between the Clinton Foundation and her State Department. CNN has learned that FBI officials wanted to open an investigation into whether there was a criminal conflict of interest. A U.S. official says the FBI met with the Justice Department officials a few months ago after a bank reported suspicious activity by a foreigner who donated to the foundation.
Justice officials had looked into the foundation a year earlier after the release of the controversial book "Clinton Cash." But they found insufficient evidence to launch a probe. So at this year's meeting, the DOJ again declined to open a case against the foundation. The FBI, Justice Department and Clinton Foundation all declined to comment.
KOSIK: It turns out the cyber attack against the Democratic National Convention also included a breach of private e-mail accounts belonging to top party officials with direct ties to the Hillary Clinton campaign. According to a source close to the investigation, campaign officials have already met with the FBI about the hack.
Listen to the highest ranking Democrat in Congress, Nancy Pelosi, where here she compares the breach to another infamous moment in American politics.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D), MINORITY LEADER: This is an electronic Watergate. This is an electronic Watergate. This is a break-in. Russians broke in. Who did they give the information to? I don't know. Who dump it? I don't know. But I do know that this is a Watergate-like electronic break-in.
(END VIDEO CLIP)
KOSIK: Interim DNC chairwoman Donna Brazile announcing the party is setting up a cyber security advisory board to deal with future hacking threats.
Regardless of who wins November's elections, the next president will be the highest paid leader in the world. A new CNN Money analysis finds President Obama's $400,000 salary is the largest among any president or prime minister even in the world's biggest economies. So when you convert their salaries into U.S. dollars at current rates, Canada's Justin Trudeau is second at $260,000. He is followed by Germany's Angela Merkel, Prime Minister Shinzo Abe from Japan and south president -- South African President Jacob Zuma.
Now the last time the U.S. president got a raise? Well, that was back in 2001. But don't cry for me here or don't cry for them there because you know what, those speaking fees, that's where it comes in.
NOBLES: Yes. And imagine there are some other leaders in other places that are making money in other ways. Maybe?
KOSIK: Hopefully true what you're talking about.
(LAUGHTER)
NOBLES: The Americans keep dominating in Rio. Michael Phelps adding to his record collection of gold and two new comers steal the show as well. We are live in Rio next.
(COMMERCIAL BREAK)
[04:42:55] KOSIK: American swimmer Michael Phelps making history yet again adding new medals to his record Olympic haul, winning his 22nd career gold on Thursday. Phelps is now 4 to 4 at the Rio games -- 4 for 4 at the Rio games, and the gold rush for Team USA not stopping there.
CNN's Christina MacFarlane following it up for us. She is live in Rio. Good morning, Christina.
CHRISTINA MACFARLANE, CNN WORLD SPORTS CORRESPONDENT: Good morning, Alison. Yes, the gold keep coming for Michael Phelps. 22 now and his fourth of the week. But it seems, you know, that that meant the 200- meter individual medley meant more for him than most because he was in tears at the podium. He said he heard the announcer called out that fourth gold and he just couldn't hold it together.
Phelps, of course, the first Olympic swimmer now to win the same event in four straight Olympic Games. And then of course 38 minutes later, he came back and he raced again in the men's 100-meter butterfly. This time coming from behind to finish second.
But I'll tell you his exploits were almost overshadowed by what came next in the pool. Joint gold for women's 100-meter freestyle for the first time since the Sidney Olympics in 2000. 16-year-old Canadian Penny Oleksiak and the 22-year-old Simone Manuel. Manuel becoming the first African-American swimmer to win Olympic gold, would you believe? She said afterwards that this picture was not just for her but for a bunch of people who became before her and all those she'll inspire in the years to come.
Now Phelps is due to be back in the pool of course today to compete in the 100-meter butterfly and a possible medal number five. And let's not forget that Katie Ledecky will also compete in her signature 800- meter freestyle. That's the one she won as a 15-year-old back in London 2012.
Now Phelps wasn't the only superstar of the night. Of course Simone Biles' victory in the women's all-around wasn't a surprise but the performance was something to behold. She won by an enormous two-point margin in an event where gymnast usually win by tenths. Her tumbles on her floor routines almost twice the height of her tiny frame. She has of course now won 10 world championship gold since bursting on to the scene in 2013. And now two gold medals.
[04:45:04] And remember, she could make it five with the beam, the vault and the floor all still yet to come. And let's not forget, of course, it was double delight for the United States because her teammate and close friend Aly Raisman took the silver.
Now we've had our fair share of controversy over the Russia doping crisis in recent days. But on Thursday it was Kenya who fell foul of doping regulators after the Kenyan athletics coach was sent home from Rio after posing as an athlete to give a urine sample. Kenyan Athletics Federation said that their sprint coach John Anzrah had presented himself as their 800-meter medal hopeful Ferguson Rotich and even filed the documents for the doping test, would you believe? The OIC said that they open discipline procedures into the matter.
And we also need to mention that in the past few hours China swimmer Chen Xinyi has reportedly tested positive for a banned substance. Now China's state-run news agency says authorities will cooperate with the investigators and respect the Court of Arbitration's decision over the matter. Xinyi is due to compete in the women's 50-meter freestyle later today. But as of this moment, we're still waiting for FENA, their sports governing body in swimming, to confirm her eligibility -- Alison.
KOSIK: All right. Christina MacFarlane, thanks so much.
NOBLES: And it is a deal fit for a king. LeBron James agreeing to a three-year $100 million contract that will keep him right where he is playing for the NBA champion Cleveland Cavaliers, his hometown. The deal will make LeBron for the first time ever the highest paid player in the NBA. James telling his fans he couldn't be more excited about re-signing with the Cavs and having the chance to defend their NBA title.
But all that money he makes on the basketball court makes even more selling shoes and other products.
KOSIK: All those sponsorships.
NOBLES: Yes, exactly.
KOSIK: Congratulations to him.
For the first time ever, the median home price in one U.S. city is more than $1 million. It's probably not the city you're thinking of. We're going to show you the sky high prices when we get an EARLY START on your money next.
(COMMERCIAL BREAK)
[04:51:15] NOBLES: Twenty-four people taken to the hospital after a very bumpy JetBlue flight from Boston to Sacramento was forced to land in South Dakota. 22 passengers and two members of the flight crew were hurt by the extreme turbulence. People on board posting photos on social media showing injured passengers being taken off the plane on stretchers. A new plane was sent to take the passengers the rest of the trip. They are due to arrive in Sacramento around 7:00 a.m. Eastern Time.
KOSIK: Eleven explosions rocking five provinces across Thailand in the past 24 hours. At least four people have been killed with dozens more wounded including tourists from Italy, Germany, Austria and the Netherlands. Four of the blasts targeting the same location, the seaside resort town of Hua Hin. Police say two other bombs were diffused before they could go off. Thai officials are calling the attacks coordinated but it is unclear who might be behind them.
NOBLES: The president of Ukraine putting his troops along the border with Russian-controlled Crimea on high alert. He's warning Vladimir Putin is looking to restart the hostilities in the region. On Thursday the Russian president accused Ukrainian agents of -- I'm sorry, engaging in terrorist activities on the Black Sea peninsula and vowed to respond with, quote, "very serious measures."
KOSIK: Health and Human Services Secretary Sylvia Burwell is redirecting $81 million from other departments to keep the fight against the Zika virus outbreak going. She just informed House Minority Leader Nancy Pelosi she is exercising her authority to transfer the money from the National institutes of Health and the Biomedical Research Authority. The White House asked Congress for $1.9 billion in Zika funding last February. But lawmakers have failed to act on the request.
NOBLES: Former Penn State football coach Jerry Sandusky is scheduled to testify in an appeal hearing in Pennsylvania this morning. The convicted child molester claims his lawyers bungled his 2012 trial. He'll have to convince the court his team was so ineffective that they undermined the fairness of his trial. The 72-year-old Sandusky is serving at least 30 years behind bars for sexually abusing 10 boys. KOSIK: Yet another amusement park accident to talk to you about. A
young boy falling off a rollercoaster at the Idlewild theme park in western Pennsylvania. The boy was airlifted to a hospital in Pittsburgh. The extent of his injuries is not known. The Rolo- Coaster ride will be shut down while officials investigate. The accident coming just days after a 10-year-old in Kansas died on a giant water slide and three girls in Tennessee were injured after being thrown from a Ferris wheel.
NOBLES: Outrage in Colorado after a former university student was spared a prison sentence for his sexual assault conviction. 22-year- old Austin Wilkerson got two years in a county lockup, making him eligible for work release or to attend school during the day. Now under Colorado law, this sentence could have been anywhere from eight years to life. Critics say it is disturbingly similar to the case of an ex-Stanford swimmer sentenced to six months for raping an unconscious woman.
KOSIK: Switching gears, the weather, it's hot outside, it's muggy, and that's how it's going to be the weekend ahead for the northeast.
Let's turn to meteorologist Derek Van Dam.
DEREK VAN DAM, AMS METEOROLOGIST: That's right, Alison and Ryan. The mercury in the thermometer continues to climb up this weekend.
(WEATHER REPORT)
[04:55:37] VAN DAM: Back to you.
KOSIK: OK, Derek, thanks very much.
Let's get an EARLY START on your money. The Dow, Nasdaq and the S&P, all three, all hitting record highs at yesterday's close. A trifecta. It's something that hasn't happened since 1999, oh the DOT bubble. Right now Dow futures are continuing their run. Looks like they're pointing slightly higher. Markets in Europe are mixed. Seeing solid gains in Asian stock markets overnight. Oil prices holding steady back above $43 a barrel.
We are also keeping our eye on shares of Macy's today. That stock jumped 17 percent yesterday after the retail chain announcing it was closing 100 stores. That's despite strong quarterly earnings. Closing stores because sales are down. Investors liked the plan which Macy's executives say is necessary to meet fast changing demands of customers.
Now Macy's is just the latest retail chain to be squeezed by the changing landscape of retails. Shoppers seem to prefer fast fashion chains like H&M and discounters like TJMaxx and online retailers like Amazon, of course. GAP and Sears also posting big drops in sales this week.
All right. Sit down for this one. For the first time ever, the median home price in one U.S. city is more than $1 million. And no, it is not in New York. It is not in San Francisco. Although kind of near San Francisco. San Jose, California, now has a median home price of $1,085,000. That is according to a new report from the National Association of Realtors. Homeowners there can thank Silicon Valley, the recent tech boom. It's pushed prices sky high because there's a huge demand and tight inventory.
After San Jose, it's San Francisco sitting at nearly $900,000. What a bargain there. The Anaheim area and Urban Honolulu come next. Both of those areas, though, have median prices of more than $700,000. You look nationwide, home prices are up almost 5 percent from this time last year. So that's good for people who are looking to obviously sell their homes.
NOBLES: Right.
KOSIK: But I'll tell you what, a million bucks median price? What?
NOBLES: And you think for a million bucks, you'd be getting a mansion. And something tells me if that's the median price, that's probably not what you're getting.
KOSIK: Pain.
NOBLES: EARLY START continues right now.
Donald Trump standing firm in his conviction President Obama created ISIS. But now the party boss is trying to get Trump to tone it down. What did Trump discuss with the head of the RNC?
KOSIK: Hillary Clinton fending off increasing charges of pay-to-play when she was secretary of state. How close did Clinton come to a corruption probe for close ties between her foundation and her State Department.
NOBLES: And a night of historic proportions for Team USA. Michael Phelps nabbing another gold and two American women are breaking barriers. We are live in Rio with the recap.
Good morning. Welcome to EARLY START. Thank you for starting your day with us. I'm Ryan Nobles.
KOSIK: And I'm Alison Kosik. Good morning. It's Friday, August 12th. Coming up on 5:00 a.m. in the East right now, and Donald Trump doubling down this morning on his claim that President Obama founded ISIS.
He's really digging on this, rejecting conservative radio host Hugh Hewitt's attempt to get Trump to adopt a moderate sounding clarification of the founder accusation. This as Republican Party chairman Reince Priebus calls Trump, trying to get him to tone down his rhetoric in the interest of the down-ballot GOP candidates.
More from CNN's Jim Acosta with the Trump campaign in Florida.
JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Alison and Ryan, Donald Trump once again referred to President Obama as the founder of ISIS at a rally outside of Orlando. Trump said that the president bears responsibility for the rise of the terror group because he did not leave, what he called, a relatively small force in Iraq. But that runs contrary to what Trump told CNN back in 2007 when he said that the U.S. should declare victory and leave.
Here's more of what Trump had to say at this rally outside of Orlando.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Barack Obama is the founder. Hey, if he would've -- folks, we should have never been in Iraq. We were going to destabilize the Middle East. I said it. I was a civilian, nobody cares. I was a civilian, nobody cares. We should have never been in -- they should have understood it. They made a mistake, but we should have never ended it the way they ended it. By ending the way he ended it, and he got everybody out and he let them know when, and we're leaving, and they just sat back.
