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Early Start with John Berman and Zoraida Sambolin

Two U.S. Swimmers Pulled Off Plane by Brazilian Police; Shake- Up at the Top of Team Trump; Clinton Mocks Trump Campaign Reboot; Highlight from Rio Olympics. Aired 4:30-5a ET

Aired August 18, 2016 - 04:30   ET

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

[04:31:25] GEORGE HOWELL, CNN ANCHOR: A stunning controversy at the Rio games. Two American swimmers taken off a plane and not allowed to leave Brazil days after they claimed they were held up at gunpoint. Why their story is now in doubt and what's in store for these Americans?

CHRISTINE ROMANS, CNN ANCHOR: The latest reboot of Donald Trump's campaign is off and running. What is his new campaign manager saying and will we see big changes on the trail for the Republican nominee?

Welcome back. Good morning, everybody. This is EARLY START. I'm Christine Romans.

HOWELL: And I'm George Howell. 31 minutes past the hour. And there is breaking news to share with you from overnight from the Olympic Games.

Brazilian police pulling two American swimmers off their plane back to the United States and seizing their passports. Also attempting to serve a warrant on medal winner Ryan Lochte, only to discover he has already left Brazil. And police are trying to find another teammate, James Feigen, whose exact whereabouts are unclear at this point.

Authorities say they want to question all four of Olympic swimmers about their report that they were robbed by gunmen who they say were dressed as police officers. Investigators also questioning the truthfulness of that report based on apparent inconsistencies in the swimmer's statements and on surveillance video purporting to show their behavior after the alleged robbery.

For the very latest on this case let's bring in CNN's Nick Paton Walsh in Rio.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Christine and George, this remarkable story has yet another extraordinary turn to it. Two of the swimmers who have not been questioned by Brazilian police who were involved in this remarkable incident in the early hours of Sunday morning where they said they were robbed by men dressed as police as they left a nightclub.

These two individuals, Gunnar Bentz and Jack Conger, have been taken off a plane back to the United States by Brazilian police. Now as far as we understand from a police source near the airport, they have been questioned. Their passports have been taken from them. They'll be allowed to go around Brazil, but still it's not quite clear when those passports will be given back to them.

And this is yet another remarkable developments in this story. Earlier today, we heard from a Rio judge that Ryan Lochte, probably one of the most famous American swimmers here at the games, and his fellow swimmer James Feigen had given statements to the Brazilian police which the judge had thought really weren't consistent enough and aroused their suspicions and caused this judge to issue a search and seizure warrant for the men and for their passports in theory to stop them leaving the country as well.

Now Ryan Lochte is back in the United States. His lawyer said he left as he's scheduled before these warrants were issued. That he had cooperated with anybody who sought to ask him questions. And in fact at this stage, there's nobody reaching out to him to ask him to cooperate further.

But we're dealing with a very confused picture of what happened in the early hours of that Sunday morning. Many Brazilians and the police spokesperson we talked to today are wondering, how was it these men experienced an armed robbery, apparently, by police -- people dressed as police carrying weapons, yet still emerged from that incident carrying in their own admission their cell phones. And if you look at the CCTV, which the judge cited in that court statement, pointing out how they seemed, in her impression, unshaken after their ordeal.

You see in that video, too, they are carrying some pretty high value items. That left many Brazilians and some police suspicious. How do you get through an armed robbery in Brazil and still keep things like that in your possession?

It's added to a growing number of questions that the police have sought answers to. That led to the court papers this morning.

[04:35:01] Now two athletes taken off the plane, athletes from the ream at the top of the medals table right now. And it's going to be their word, frankly, against Rio authorities. It seems at the moment simply questions being asked right now. No suggestion of any major wrongdoing, but a very confusing and frankly bleak moment for an already blighted games -- Christine, George.

ROMANS: All right, Nick, thank you for that in Rio for us.

An attorney for Ryan Lochte defending the swimmer. Speaking to CNN overnight, he pins the controversy on the host nation saying in part, quote, "When you have one of America's athletes who comes out and said something happened to him, it happens to people there every single day, that doesn't look good for a country trying to have a successful Olympics."

The U.S. Olympic Committee confirms the swimmers' detention and release from a statement overnight, saying that Conger and Bentz will continue discussions with Brazilian law enforcement today. The USOC adding that James Feigen is also in touch with police and will make further statements today.

The U.S. State Department says it is on the case as well but otherwise tight-lipped at this point, releasing this statement, "We have seen media reports that two U.S. citizen athletes were detained. We stand ready to provide all appropriate consular assistance."

We'll have more from Rio, the games themselves, including the America's sweep of the medals in the women's 100-meter hurdles. We'll have that later this half hour.

HOWELL: Turning now to the race for president. The Trump campaign's latest reboot is now under way. And new details are coming to light about what led to the shakeup and exactly how it happened. Sources tell CNN Donald Trump's son in law, Jared Kushner, cut short his vacation, calling a meeting that included current campaign chairman, Paul Manafort, and two new top officials who Trump is bringing in, pollster Kellyanne Conway and -- as campaign manager, and Breitbart News executive Steve Bannon, to be Trump's new campaign CEO. Sources say Manafort is being, quote, "sidelined." Even so he sent out a staff memo calling the revamp an exciting day for Team Trump.

For the very latest let's go to CNN's Sara Murray covering the Trump campaign.

SARA MURRAY, CNN POLITICS REPORTER: Good morning, Christine and George.

It is yet another reset for the Trump campaign. Now the reason Trump did all of this sources tell us is because he was frustrated with the direction his campaign was taking. He didn't feel like he could necessarily trust the advisers around him and he felt like he was straying from this outsider image in trying to please the Washington establishment, particularly the Republican establishment.

Today we'll get our first test of what this new leadership looks like. Donald Trump is campaigning in North Carolina. And some sources have said look, this new regime means that Trump can get back to basics. He can hold these big ruckus political rallies, he can go with his gut instinct, he can speak off the cuff.

But when I spoke to Kellyanne Conway, the newly minted campaign manager, last night she added a note of caution to that.

(BEGIN VIDEO CLIP)

KELLYANNE CONWAY, TRUMP CAMPAIGN MANAGER: We are trying to remind everybody of two things. One, it is the issues that Americans want to hear about. They want to hear about combating terrorism, bolstering national security, doing better than Obamacare that Americans still don't support. Of course, he'll be talking about immigration and education in the next couple of weeks.

And number two, reminding everybody, there are two candidates in the race. Not one. That this election is somehow becoming a referendum on Donald Trump, as if you are going to go into the ballot box and it's going to say, Donald Trump, yes or no. It's not. Hillary Clinton's name will be on the ballot, and I know her people and her supporters are protecting her by not letting allowing her to talk to the press. I'm happy to talk to you, but apparently, she doesn't respect you the way we do. She wouldn't even give you a press conference.

(END VIDEO CLIP)

MURRAY: So we will see if a new set of advisers and maybe a slightly different Donald Trump on the stump will be enough to turn around what a pretty unfortunate polling numbers for him right now in basically all of the battleground states.

Now Kellyanne Conway says there is no reason to panic yet. It's only August. It's not October. But that might be cold comfort to a number of Republican establishment folks and Republican operatives who are getting increasingly worried about the direction of the polling.

Back to you, guys.

ROMANS: All right. Sara here in New York. Thanks, Sara.

On the Democratic side, Hillary Clinton mocking the Trump campaign overhaul. At a rally in Ohio where she also targeted Trump's economic plans. She called it welfare for the wealthy. Clinton laying out her own tax plans, spotlighting her proposal to tax the wealthiest of Americans who she said has made all of the income gains in the last 15 years.

Her campaign also fending off questions about the State Department under Secretary Clinton's leadership and whether it showed favoritism to the Clinton Foundation donors.

We get the latest now from CNN's Joe Johns. He's in Cleveland.

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: George and Christine, Hillary Clinton here in Cleveland hammering the Republican nominee for choosing the head of the conservative news site Breitbart to lead the presidential campaign.

Mrs. Clinton making the case that no matter what Donald Trump may change in his presidential campaign, he will still be Donald Trump.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I think it's fair to say that Donald Trump has shown us who he is. He can hire and fire anybody he wants from his campaign. They can make him read new words from a teleprompter, but he is still the same man who insults Gold Star families, demeans women, mocks people with disabilities, and thinks he knows more about ISIS than our generals.

(END VIDEO CLIP)

[04:40:20] JOHNS: Meanwhile, the Clinton campaign was responding to new documents suggesting that shortly after Mrs. Clinton stepped down as secretary of state, the State Department considered a land deal linked to a billionaire who had given $1 million to the Clinton Foundation. The campaign put out a statement saying there was no quid pro quo, the deal never happened, and blasting Citizens United. The group that brought the information to light. Mrs. Clinton also continues to go after Donald Trump on why he won't

release his income tax returns, folding her attacks on his economic plan into an argument suggesting he is out for himself in this election -- George and Christine.

HOWELL: Joe, thank you.

A substantial amount of material from the Hillary Clinton e-mail investigation has just been delivered to Congress by the FBI appears to be unclassified and could be made public. This according to the Senate Judiciary chairman Chuck Grassley. He's ordered Senate staffers to separate the classified and unclassified materials in order to release as much of that information as possible.

Those documents include notes from the FBI agents who monitored interviews with Clinton and her top aide Huma Abedin. The Clinton campaign says it favors releasing the FBI material to the public.

ROMANS: All right. Time for an EARLY START on your money this Thursday morning. We could see another day of record highs for stocks. Dow futures pointing higher. Won't take much to make new records. Slim gains yesterday. A solid gain today to produce another trifecta of records. Stock markets in Europe and Asia, you can see they're mixed. Oil now above $47 a barrel.

The Federal Reserve dropping hints, major hints, that a rate hike may be coming soon and that's a sign of confidence in the American economy. During its last policy meeting, some members were ready to act. But the group decided against an increase right now.

This week, two Fed members have public said a rate hike is likely this year. And investors are listening, now putting more money in a rate hike by the end of the year. They believe there's a 42 percent chance of a hike in December. That's up from a 35 percent chance just a week ago. The chances of a rate hike during the -- two meetings before that are still low.

And of course when the Fed raises that short-term interest rate, it can raise the cost of borrowing money for everything, from car loans, to home loans, credit cards., any kind of like revolving debt so it's incredibly important when the Fed makes a move like that. But they've been on the sidelines for some time now because they've been concerned about the health of the economy, jobs are doing well, it looks like the Fed is feeling more comfortable about raising rates.

HOWELL: It's a good indicator that they feel the economy is doing better.

ROMANS: Yes.

HOWELL: It's good.

A situation we're following. Families concerned about the Zika virus. Well, there is a program to stop the spread of that virus in Florida. But it's hitting a roadblock. Why residents are protesting that plan as EARLY START continues. (COMMERCIAL BREAK)

[04:47:14] ROMANS: A test plan to combat the Zika virus by releasing genetically modified male mosquitoes in the Florida Keys has hit a snag. The Food and Drug Administration approved the experiment earlier this month but residents of Key Haven protested, claiming they are being treated like lab rats.

A non-binding resolution will now be on the November ballot, delaying the start of this program. Health officials believe the modified male mosquitoes will mate with wild females. Their offspring engineered then to die before reaching adulthood.

HOWELL: The death toll is rising in southern Louisiana as catastrophic flood waters start to recede. At least 13 people are now confirmed dead there. Homeland Security Secretary Jeh Johnson travels to the region today to survey the damage that you see there. More than 70,000 people have registered for assistance under the Federal Disaster Declaration. The American Red Cross now calling it the worst natural disaster in the U.S. since super storm Sandy.

ROMANS: The Blue Cut Fire near San Bernardino, California, it's spreading so quickly officials are warning more than 80,000 evacuated residents. Their homes may be gone when they eventually return to their neighborhoods.

Take a look at this time lapse video. This is taken Tuesday night. The fire growing from five acres -- wow -- to 25,000 acres in just 24 hours forcing the evacuation of I think 35,000 homes.

HOWELL: Wow.

ROMANS: It's not clear how many structures have already burned. That really tells the story, doesn't it, George?

HOWELL: You look at that video. This fire is spreading fast. And the question now is there any relief in sight for those firefighters? Let's bring in our meteorologist Pedram Javaheri with a look at that.

(WEATHER REPORT)

ROMANS: All right. Thanks, Pedram. All right. Aetna dropping its Obamacare coverage in most states just weeks after the Department of Justice filed suit to block its big merger plans.

[04:50:06] Are these two things related? New details when we get an EARLY START on your money next.

(COMMERCIAL BREAK)

HOWELL: Welcome back. American athletes reacting this morning after two American swimmers are pulled off a plane and forced to stay in Brazil and their account of an armed robbery in Rio now comes in question.

Let's bring CNN's Christina Macfarlane live in Rio, following the story.

And Christina, how might these developments impact the morale for the U.S. team overall?

CHRISTINA MACFARLANE, CNN WORLD SPORTS CORRESPONDENT: Well, as you can imagine, George, it's a rather confusing picture here in Rio right now. Some people questioning why Ryan Lochte left the country before allowing the Brazilian justice system to run its course. But I'll tell you, it doesn't seem to be affecting the athletes.

We spoke to one U.S. athlete close to Lochte on Wednesday who said he'd been trying to reach out to Lochte, but hadn't heard back.

[04:55:06] I think the athletes here just wanting to focus on their competition and, you know, distance themselves from the situation, and it certainly doesn't seem to have affected the performances on Wednesday.

Among other things we saw the USA take gold and silver in the long jump, silver in the team of question. But the results of day 12 by far was the women's clean sweep of the 100-meter hurdles. Now it's the first time in Olympic history that the U.S. have taken gold, silver and bronze. Brianna Rollins leading the pack with Nia Ali in close second and Kristi Castlin putting in a storming final 15 meters. In a well timed lean to take bronze medal. Afterwards they said they had been inspired by their team mate Katie Ledecky and Simone Biles. And let's face it, who wouldn't be?

Now Usain Bolt is having far too much fun at these Olympic Games. He cruised to victory in the 200-meter semifinal on Wednesday, laughing as he crossed the line, and even joking with the Canadian Andre De Grasse who finished in second. An indication I think that he could be set to take not only to take gold on Thursday night, but also break his own world record which currently stands at 19.19 seconds. Which he set back in 2009. And then what was a bit of a shock, his two main rivals, Justin Gatlin of the USA, and Jamaica's teammate Johan Blake failed to qualify for the finals. So I'll tell you, all eyes on Bolt tonight.

Now meanwhile in the basketball arena, it's a familiar foe for Team USA who will play Spain in the men's Olympic semifinals. Remember they faced Spain in both of the last finals for the slot to Olympics. But they were slow to get off the mark against Argentina in the quarter finals until Kevin Durant steps up putting away 27 points drilling nine shots from the field for 105-78 victory. So it will be the number one seed versus number two seed in the semifinal with Spain looking to upset the 14-time Olympic champions. Good luck with that.

Now it wasn't gold, but Kerri Walsh Jennings wasn't complaining when she picked up her fourth successive Olympic medal on Wednesday alongside teammate April Ross. Now they beat Brazil's number one duo to the bronze. And elsewhere Brazil missed out on the gold. Can you imagine how that went down here as Germany triumphed in front of a packed Brazilian crowd. Walsh Jennings hinting afterwards that she wasn't quite done with the sport yet, saying that 42 years of age doesn't sound old for her and that is of course the age she'll be if she decided to come back in Tokyo 2020.

So looking ahead to Thursday the battle of the so-called super humans will come to a close today with USA's Ashton Eaton in prime position to become the first man to successful defend his Olympic decathlon gold medal since 1952. He put in a fine performance on Wednesday in the 400 meters expanding his lead to 121 points at the halfway point. But he still has five events to come this Thursday. The decathlon 10 events over two day. It's enough to make me want to lie down in a dark room -- George.

(LAUGHTER)

HOWELL: Christina, the sun just starting to rise there. Another day of competition. We'll stay in touch with you. Thank you for your reporting.

ROMANS: All right. Let's get an EARLY START on your money this morning. The stock market could be back in rally mode. Dow futures pointing higher right now. Stock markets in Europe and Asia mixed. Oil providing some of this optimism. Oil back above $47 a barrel.

Small gains yesterday for U.S. stocks. After minutes from the Federal Reserve's latest meeting, dropped a major hint that the economy is almost ready for a rate hike soon. A big sign of confidence in the U.S. economy.

Same time, though, job cuts are mounting in the tech sector. Cisco is cutting 5500 positions. That's about 7 percent of its global work force. The move will make room for investments in trendy new area like cloud computing and Internet of things. That brings total job cuts in tech sector this year to nearly 63,000 positions. 71 percent from the cuts made the tech job by this time last year.

These cuts have been rumored to be more than twice that amount. And investors were disappointed. The stocks is falling at premarket trading, following a 2 percent drop yesterday. Watch Cisco today. It has performed well this year with the broader tech sector gaining 13 percent year-to-date. Making things worse Cisco was forced to put out a public advisory yesterday that its products are vulnerable to hacking and spying from the National Security Agency.

All right. The big question in health care this morning. Did see Aetna dropped most of its Obamacare coverage in reaction to the Department of Justice blocking its merger with Humana? In a letter to the DOJ last month Aetna's CEO writes, quote, "We believe it is very likely that we would need to leave the public exchange business entirely and plan for additional business efficiencies should our deal ultimately be blocked," end quote. The letter was obtained by the "Huffington Post" following a Freedom of Information Act requesting about three weeks after that letter was written,. The DOJ files a lawsuit to blast the Aetna-Humana merger and also that of its rival, Anthem and Cigma. So watch the drama there in the Obamacare exchange.

HOWELL: Absolutely.

EARLY START continues right now. There is a big Olympic controversy brewing in Rio. Two American

swimmers yanked off a plane unable to leave Brazil amid questions about an armed robbery they reported days earlier.