Return to Transcripts main page

EARLY START

Sanders: Democratic Convention Could Be "Messy"; Clinton Nixes Debate In May; Trump Releases Ad Recapping Bill Clinton Sex Accusations; New Mexico Governor Won't Attend Trump Rally; President Obama Reflects On Vietnam War; Battle To Liberate Fallujah Begins. Aired 5:30-6a ET

Aired May 24, 2016 - 05:30   ET

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


[05:30:00] GEORGE HOWELL, CNN ANCHOR: Hillary Clinton and Donald Trump, new attacks on each other. And Bernie Sanders delivering a new warning about what could happen at the Democratic convention.

Hello, and welcome back to EARLY START. I'm George Howell.

ALISON KOSIK, CNN ANCHOR: And I'm Alison Kosik. Good morning. It's 30 minutes past the hour and this morning Sen. Bernie Sanders vowing to stay in the race even if it means a messy Democratic convention. Sanders defiant, coming as Hillary Clinton looks right past her primary challenger and straight toward Donald Trump in the general election, as she pulls out of a debatein California planned for May. Sanders blasting Clinton's decision at a rally last night in Santa Monica.

CNN's Sunlen Serfaty was there.

(BEGIN VIDEOTAPE)

SUNLEN SERFATY, CNN NATIONAL CORRESPONDENT: George and Alison, as Hillary Clinton is increasing her urgency a bit in calls for Democrats to unite before the general election, Bernie Sanders is digging in more. He is renewing his promise to take his fight all the way to the convention floor.

In an interview with the Associated Press he was asked about the potential for the Philadelphia convention to get messy, to which he replied, "So what! Democracy is messy." But then he added he will "condemn any and all forms of violence". And as he barnstorms the state of California he seems to be taunting Hillary Clinton just a bit, saying he believes that she is getting very nervous at his chances going forward.

Now meantime, the Clinton campaign has announced that they will not participate in a debate before the California primary in two weeks, a debate that Bernie Sanders has signed onto. And this is something that he brought up here at his rally in Santa Monica.

SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: I was disturbed, but not surprised, to hear a few hours ago that Sec. Clinton has backed out of the debate. I think it is a little bit insulting to the people of California, our largest state, that she is not prepared to have a discussion with me about how she will help the Californians address the major crises that we face.

SERFATY: And the Clinton campaign clearly turning their focus towards the general election again. Says that they believe their time right now is being better spent campaigning, talking to voters, and preparing for the general fight ahead -- George and Alison.

(END VIDEOTAPE)

HOWELL: Sunlen Serfaty, thank you. The war between Hillary Clinton and Donald Trump -- it is intensifying as Trump delivers a low blow, releasing an Instagram ad on Monday with the voices of two women who once accused Bill Clinton of sexual assault. Hillary Clinton battling back with a new ad of her own, using Donald Trump's own words against him -- listen.

(BEGIN VIDEO CLIP)

(Ad playing)

Nine million Americans lost their jobs. Five million families lost their homes. And the man who could be our next president was rooting for it to happen.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I sort of hope that happens because then people like me would go in and buy. If there is a bubble burst, as they call it, you know, you could make a lot of money.

If Donald wins, you lose.

(END VIDEO CLIP)

KOSIK: So much to talk about. Let's break down new developments in the race president.

HOWELL: That's right. Let's bring in CNN politics reporter Eugene Scott, live in our Washington bureau, to talk about all of this. So, Eugene, we heard that ad just a moment ago. Donald Trump's words, his own words. Two questions. Will we see more of that from Hillary Clinton, and then also, this Instagram ad?

A low blow from Donald Trump, but again, the voices of two women who accused Bill Clinton of sexual assault. This is from a candidate who has had own infidelities, and that old expression, you know, those who live in glass houses, should they throw stones? Will that work for Trump?

EUGENE SCOTT, CNN POLITICS REPORTER: Well, I'm not quite sure that it will. I imagine at the heart of the mindset behind this is the fact that he's polling very poorly with women and so he wants to put a dent in Hillary Clinton's approval ratings with women.

I'm not completely sure how this ad does that. I don't know what communicating or sharing what your opponent's husband allegedly did 20 years ago helps you get support from women today. But we knew this was going to happen. We got hints of this coming before and we expect to see more. We do know that a top issue for voters is always going to be the

economy, and so I would think that he would be more concerned about the ad that Hillary Clinton put forward that shows that perhaps he was wishing the worst luck on so many people. So many of the people that are actually behind him right now.

HOWELL: But does that work when we hear Trump's words used against him? I mean, he's said a lot of things. Will we hear more of that and will it play?

SCOTT: Well, it depends on who we're talking to, right? There are people who are going to go with Donald Trump regardless of what comes out, and so it won't work with them. But there will be people who will feel uncomfortable about the fact that they lost their job, that they lost their homes.

[05:35:00] And there is some doubt about his business prowess, despite how he communicates it, regarding the casinos and other businesses he been involved with and there will be some doubt whether or not he, in fact, is the best person for the economy.

KOSIK: So, as we see Donald Trump getting down and dirty with that Instagram post, we are also hearing from Hillary Clinton at a rally in Detroit on Monday. She's getting pretty strong with her words, as well, attacking Donald Trump right where it hurts. Attacking him about how he does business. Listen to this.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Trump economics is a recipe for lower wages, fewer jobs, more debt. He could bankrupt America like he's bankrupted his companies. I mean, ask yourself how can anybody lose money running a casino -- really?

(END VIDEO CLIP)

HOWELL: That's a punch to the gut.

KOSIK: So, is this what is effective here, attacking him as being a businessman? Something that he just runs on as sort of the V-feather in his cap? It is kind of a strike at his manhood, isn't it?

SCOTT: Well, that's certainly how he communicates that he is one of the best leaders, if not the best leader, for this country. He's been a successful businessman. And so the way you attack him is by saying you haven't been as successful as you say you have because that's all you really have. You can't attack him based off his policy or government service because he doesn't have any of that to pull from.

Also, what Hillary Clinton is banking on is people remembering the Clinton years where the economy was better for many people. And even though she's made it clear that her husband will not be the president, that name affiliation doesn't hurt her in this situation. What hurts Donald Trump, ultimately, is the fact that his name hasn't been as successful as he has said it has. HOWELL: Let's talk about Donald Trump. He'll be in the state of New Mexico at a rally in Albuquerque. The Republican governor there, though, will not be attending that rally. So the question to you, are we still seeing some Republicans staying away from Trump?

SCOTT: Well, we saw yesterday in a report on cnnpolitics.com that the Trump campaign is giving some Republican candidates who are up for reelection their blessing to distance themselves from the Trump campaign if they believe that will ultimately hurt them when it comes time for voters to go to the polls.

And so, what we know is that there's some people who are on board the Trump train, privately but not necessarily publicly. And I think, ultimately, that is what matters most to the Trump campaign. What people will do in November, not necessarily May.

HOWELL: So there's a private car on the Trump train and a public car on the Trump train -- interesting.

KOSIK: You know, we are seeing Bernie Sanders really vow to stick it out and stay in this race, but at some point the thinking is he's going to bow out. Are we going to see some consolidation as far as the Democrats in getting behind Hillary Clinton, so when we see these polls between Trump and Clinton it could actually give some momentum to Hillary Clinton's numbers?

SCOTT: Yes, we're definitely going to see some consolidation. How much is what is up in question. What is up in the air. As we've hinted at before, in 2008, there were certainly people who were supporting Hillary Clinton who said I will not support Barack Obama, but they ended up doing so. And so, that's expected to be the case here.

Now, how many is unclear because the #NeverHillary hashtag and movement is real and so there are people who will not vote for Hillary Clinton. But there's certainly people on the Sanders team who will vote for her if she's the nominee, including, likely, Bernie Sanders.

HOWELL: Such an interesting race. Two of the candidates who have the most negative ratings in a political cycle just duking it out. Eugene Scott, thank you so much.

SCOTT: Thank you.

KOSIK: Thank you. All right, let's get an EARLY START on your money. We are watching Dow futures. They're in the green this morning. Stock markets in Europe, actually, they're rising as well. We saw shares in Asia close with losses overnight. And oil prices holding steady, just below $48 barrel.

Well, if you're looking to buy a house you're probably finding high prices and fewer choices. Zillow is saying home prices are up 4.9 percent over the past year. The median home value now sitting at a $187,000. Low inventory, stronger wage growth, super low mortgage rates -- that's all moving those numbers higher. There are 3.4 percent fewer homes for sale in the U.S. than a year

ago, and 7.8 percent fewer entry-level homes on the market than this time last year. Denver, Portland, Dallas, and San Jose posting the biggest year-over-year increases. They're all up more than 12 percent. Those markets have actually been among the hottest in metro areas in the country for the past few years.

San Jose, of course, being fueled by the tech startups there, giving out lots of big salaries, moving those median home prices up higher as well, making trying to buy those houses just really, really tough for so many people.

[05:40:00] HOWELL: You know, I've got some friends in Atlanta. They're looking to buy a home but the realtors say the inventory's just not there.

KOSIK: And everything becomes a bidding war, as well. Whoever has the deepest pockets gets the house.

HOWELL: Which is not fun.

KOSIK: No.

HOWELL: Happening now, President Obama pushing for better trade in Asia overnight, touching on old wounds that have divided the world for decades. CNN is live on what the president had to say, next.

[05:40:35]

(COMMERCIAL BREAK)

[05:44:41] HOWELL: Happening right now, President Barack Obama continues his Asia pivot. He just landed in Ho Chi Minh City in southern Vietnam, more commonly known by Americans by its former name, Saigon.

The president just finished a speech in the capital of Vietnam, Hanoi. The message there, stronger trade ties in the Far East. And at the same time, he tried to heal old wounds that have divided the U.S. and Vietnam for decades.

[05:45:00] Following it all, CNN's Alexandra Field, live in Ho Chi Minh City this morning. Alexandra, it's good to have you. The president has focused on security, he's focused on better economic ties, and here, he didn't shy away from speaking very strongly about human rights.

ALEXANDRA FIELD, CNN CORRESPONDENT: A lot of people wanted to hear him take on the issue of human rights, George, especially given the fact that human rights is so much of a backdrop of this trip. You've got these human rights groups who are very leery of the record here in Vietnam, and today we did hear the president come out and promote human rights.

One interesting point is that he actually promoted human rights by saying that people here in Vietnam would see better working conditions and higher wages as the result of the TPP -- that trade deal -- that signature trade deal which remains stalled in Congress. He said that would be a benefit to Vietnam. And remember, this is a big part of the trip here, to pitch the TPP.

This is something that's important to the president. He's made no secret about it. He continues to say that he believes -- he has confidence it will pass and that he has some support in Congress. But, you've got the two candidates in the U.S. elections who have rejected the deal. So, unclear what the future of TPP would be, even if it did pass.

That said, the president is here trying to drum up support for it. Economic cooperation is a big part of the focus of this trip. So is security cooperation. But he really did touch on a number of different issues during that speech in front of about 2,000 people who were gathered in Hanoi to listen to him today. Government officials, business leaders, diplomats, and students.

And human rights were a key part of that, not just in relation to the TPP, but he also said that he believes there is some common ground between Vietnam and the U.S. in terms of the shared values of freedom of expression, freedom of speech. And he said that those are important concepts when it comes to fueling innovation, which creates jobs, which boosts the economy here. And that's something that he'll focus on here in Ho Chi Minh City.

He has just landed here. He'll be making a visit to an historical site, and from there he'll be going to Dreamplex, which is a hub for startups for entrepreneurs here in Vietnam, so it's part of bringing the focus back to the economy here.

He has praised the economic growth in Vietnam in the post-war era and he also spoke pretty candidly about what he considered the very remarkable evolution of the relationship between Vietnam and the U.S. in the post-war years.

He noted that he is not the first president from the U.S. to come to Vietnam in the post-war era, but the first president to come of age in that era. So, very much a focus on the shared past and also that vision for the future of greater economic cooperation and more cooperation on the security front, George.

HOWELL: So, a historic trip for sure. The politics important, but Alexandra, there was a moment that just seemed kind of cool where the president met with our own Anthony Bourdain. Can we pull this image up where we see the two together? Tell us about that. What was that all about?

FIELD: They did. They shared a meal and who better to share a meal with in Vietnam, probably, than Anthony Bourdain? We're told that the meal cost about $6. We don't know what they talked about. Food looked good from the picture.

We can certainly all watch it on "PARTS UNKNOWN". We'll certainly be hearing parts of that conversation then. But, a pretty tremendous experience, probably for both parties involves, and certainly for the other people who were seated in that restaurant. I wonder who those people were?

HOWELL: It had to be interesting. Alexandra Field, live for us. Thank you for the reporting.

KOSIK: A very cool moment.

HOWELL: It was cool.

KOSIK: The TSA's top intelligence chief is out. The House Oversight Committee announcing in a tweet, Kelly Hoggan has been replaced. Hoggan faced blistering criticism at a congressional hearing last month with three witnesses testifying he had no experience in the intelligence field. But, somehow, received a $90,000 bonus, even though security lines at the nation's airports were getting worse.

HOWELL: All right. OK, the Secretary of Veterans Affairs, Bob McDonald, is under fire for downplaying patient wait times at V.A. hospitals. He told reporters on Monday that delays experienced by veterans seeking medical care are a lot like the delays facing guests at Disneyland waiting to get on rides.

McDonald says he'd rather emphasize, instead, satisfaction with the experience rather than the time that is spent waiting. Several prominent Republicans, including Donald Trump, are blasting McDonald for those comments.

KOSIK: All right, let's go ahead and take a look at what's coming up on "NEW DAY". Chris Cuomo joining us now. Good morning, Chris.

HOWELL: Chris, hello.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": How you doing Alison? How you doing George?

KOSIK: We're well.

CUOMO: I'm working on our first page that we do, and let me ask you guys. What do you think? You think the best headline about what's going on in the race right now is that it's quickly running away from the people with all these new personal attacks that we're seeing going both ways with Trump and Clinton? They're dredging up things that go back 20 years, 25 years, 30 years, in each other's lives.

The stuff about Clinton will ring more familiar to most of us, especially if you've got a little gray in your hair. Whether it's what happened politically, and who died, and who did what sexually. And then on the Trump side it's going to be a little bit more new for people because, frankly, he's been a big, popular figure, but he hasn't been scrutinized under the political light like he is right now.

[05:50:00] So, what's behind his bankruptcies, what's behind how he did business, what's behind how he lived his personal life? Is this really what we want this race to be? So we're going to lay out what's out there and then we're going to get a little bit deeper into this discussion of what should be happening. We'll have surrogates from each side to vet it.

And on the Democratic side we've got to fold in Bernie Sanders because he now said that he thinks -- what you think on your screen? Things could get messy at a convention. Now, as is often the case, Bernie Sanders later changed this comment contextually, saying well democracy is messy -- this happens.

This is the third time this has happened to Sen. Sanders. The first time this happened about qualified, where it was pitched as him saying Hillary Clinton's not qualified. He said no, they said that about me. Then it was about whether or not what happens with money. He says no, no, I'm just mentioning it because it was mentioned. Now we're there again. This time it's about the convention being a mess.

HOWELL: It is interesting. You bring up a good point. It seems like with Clinton's attacks, with Trump's attacks, we're battling to go back to 1990, in some ways, between these two candidates.

KOSIK: It's all about the skeletons in the closet.

HOWELL: Yes.

CUOMO: You know, and we're not saying it doesn't matter, right? All these things matter, but it's about what matters most in the context of this election, you know. It's not a trial, it's an election. So what happens to you? What happens to your kids? What happens to all these other issues we said mattered? They're all gone.

KOSIK: All right, Chris, we'll be watching -- thanks. Question for you. How do you become a millionaire? It's not all about luck or inheritance. Wealthy Americans sharing their secrets to success when we get an EARLY START on your money, next.

[05:51:45]

(COMMERCIAL BREAK)

[05:55:53] HOWELL: Welcome back. The battle for Fallujah is raging this morning. Iraqi forces backed by U.S. airstrikes are engaging in a fierce struggle to take back that city from ISIS. Fallujah is one of the last major strongholds for the terrorists in Iraq.

Our international correspondent -- senior international correspondent, Ben Wedeman is following developments live from Rome this morning. Ben, liberating this city is expected to take a great deal of time and cost lives.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, it's going to be a difficult battle, keeping in mind that ISIS has been in control of Fallujah since January 2014. It's the first city that ISIS was able to take control of. There are as many as 70,000 civilians still inside the city, many of them in dire condition, according to the United Nations, suffering from food and medicine shortages.

The Iraqi military has advised civilians still inside the city of humanitarian corridors through which they can escape, but of course, ISIS is not letting anybody out of the city. In fact, we understand they have shot dead those who have tried to escape. The Iraqi television is advising those who cannot get out of the city to raise white flags.

It is expected this is going to be a very difficult battle, given that ISIS has had two and one-half years to dig in, to prepare for this onslaught by the Iraqi army, which we've known was going to happen now for several months. So it's going to be a rough battle, George.

HOWELL: As you can imagine, there will be human shields there. There will be booby traps as these soldiers move through. It will be a very difficult battle. Ben Wedeman live for us. Thank you for your reporting.

KOSIK: All right, let's get an EARLY START on your money. Dow futures are slightly higher right now, following gains in Europe. Asian stock markets closing mostly lower overnight. We're watching oil prices slip, but holding right around $48 a barrel.

So, you want to know how to become a multi-millionaire? Well, listen up. The key to success is good old-fashioned hard work and family values. A new survey from U.S. Trust found that ambition, hard work, and family upbringing were the three most important factors for success among high net worth individuals.

Respondents to the survey even say these influences were much more important than connections or innate talent. And many in the survey are self-made millionaires. In fact, 77 percent say they grew up in families that were middle-class or lower. Nineteen percent say they were poor, and 80 percent of the respondents say that they had firm disciplinarians in their lives, meaning their parents saying do well in school.

HOWELL: That's a good thing. It's a good message.

KOSIK: Yes.

HOWELL: New personal attacks in the race for the White House. CNN's "NEW DAY" starts right now.

(BEGIN VIDEO CLIP)

CLINTON: Donald Trump is a disaster waiting to happen.

TRUMP: You learn very little from a tax return.

CLINTON: He could bankrupt America like he's bankrupted his companies.

TRUMP: Hillary doesn't have a clue.

SANDERS: We believe in an old-fashioned concept called democracy.

HOWELL: Iraqi forces backed by U.S. airstrikes engage in a struggle to take back Fallujah.

UNIDENTIFIED FEMALE: Violence rising as opposition to the Iraqi government grows.

UNIDENTIFIED MALE: They are attempting to trade chaos in the capital.

UNIDENTIFIED MALE: There's no hard evidence yet that this was terrorism.

UNIDENTIFIED MALE: Something catastrophic occurred.

UNIDENTIFIED MALE: It's critical for the investigators to get those devices.

UNIDENTIFIED MALE: The investigators are up against the clock.

(END VIDEO CLIP)

ANNOUNCER: This is NEW DAY with Chris Cuomo and Alisyn Camerota.

CUOMO: Good morning. Welcome to your NEW DAY. It is Tuesday, May 24th, 6:00 in the east, and guess what? This race is quickly becoming a flashback of the worst kind. Donald Trump is all about Bill Clinton's past. All the old stories of sex and dirty secrets are new again in a new ad.

And Clinton has a new ad, as well, saying Trump wants to air all the dirty laundry except his own, bashing his failed business record and tax avoidance.

ALISYN CAMEROTA, CNN ANCHOR: So, Clinton also taking heat from Bernie Sanders, who is fighting on to the final Super Tuesday, two weeks from today.