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EARLY START

President Obama Press Event Reviewed; Trump Back on Campaign Trail. Aired 4-4:30a ET

Aired August 5, 2016 - 04:00   ET

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


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[04:00:14] GEORGE HOWELL, CNN ANCHOR: President Obama pulling no punches. His final media event of the summer and he's talking Donald Trump, he's talking ISIS and Iran. And his response on Trump's claim that the election is rigged.

CHRISTINE ROMANS, CNN ANCHOR: Donald Trump looking to get back in the driver's seat, firing salvos at Hillary Clinton. But another questionable accusation has critics pouncing. We'll tell you what he said.

HOWELL: And Christine, I'm excited the world is watching, the games of the 31st Olympia just hours away in Brazil. And look at what you can expect at tonight's opening ceremony and beyond. CNN is live in Rio.

Good morning and welcome to "Early Start." I'm George Howell.

ROMANS: It's nice to see you this Friday. Good morning. I'm Christine Romans. Today is Friday, August 5th. It is 4:00 a.m. in the east.

Let's begin here with President Obama taking one last parting shot at Donald Trump before taking off on summer vacation. In a wide ranging news conference, the President delivered a troubling assessment of the war against ISIS. And shot down suggestions.

The U.S. paid a ransom for Iran -- to Iran for the released of four prisoners. But he seemed most anxious to discuss Trump's recent claim that the presidential election November could be rigged. Listen.

(BEGIN VIDEO CLIP)

PRES. BARRACK OBAMA, UNITES STATES OF AMERICA: I don't even really know where to start on answering this question. Of course, the elections will not be rigged. What does that mean?

The Federal Government doesn't run the election process. States and cities and communities all across the country, they're the ones who set up the voting systems and the voting booths. And if Mr. Trump is suggesting that there is a conspiracy theory that is being propagated across the country including in places like Texas, where typically it's not Democrats who were in charge of voting booths. That's ridiculous.

(END VIDEO CLIP) ROMANS: Now, that $400 million cash payment the U.S. made to Iran. The President says there was no, no ransom and there is no scandal there. He says his administration has been transparent all along on that. We get more from CNN White House correspondent Michelle Kosinski.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, George and Chrsitine, right. This is a wide ranging press conference. The transfer of that cash to Iran was going to come up. And the President sounding annoyed clearly wanted to put it to rest. Listen.

(BEGIN VIDEO CLIP)

OBAMA: We announced these payments in January. Many months ago, there wasn't a secret. We announced them to all of you. Josh did a briefing on them. This wasn't some nefarious deal. We were completely open with everybody about it. And that's interesting to me how suddenly this became a story again. We do not pay ransom for hostages.

(END VIDEO CLIP)

KOSINSKI: And the President there didn't tell us anything that we didn't already know. He is right. The administration announced this transfer of money back in January. Everybody reported on it then.

It's just that the recent release of these details seemed to convey maybe a sense of urgency that this plane load of cash had to get to Iran just before the prisoners were released. That reminds us of the questions, the answers to which have not been completely clear. Was there urgency? Did that money need to get there just then? And does it bother the President that the timing of this then allowed Iran to call it a ransom?

And if that money hadn't been there on time, would those prisoners then have been released? Now that may not be something we ever learned the answer to. George and Christine.

HOWELL: Michelle, thank you. The President also offering a sobering assessment of the fight against ISIS at the meeting with the National Security Council there the President told reporters. He will continue the escalation of air strikes against ISIS in Libya. And despite driving the terrorists out of several key cities in Syria and Iraq, the President warns that ISIS is shifting tactics and that the group is still a significant threat. Listen.

(BEGIN VIDEO CLIP)

OBAMA: We have to do a better job of disrupting networks. And those networks are more active in Europe than they are here. But we don't know what we don't know, and so it's conceivable that there are networks here that could be activated.

(END VIDEO CLIP)

HOWELL: President Obama admits ISIS continues to expand its influence, and its ability to launch attacks. And it's operational on some level in 18 different countries. [04:05:01] ROMANS: All right. After a week of high profile missteps, Donald Trump back on the trail and back on message for now. At a rally in Maine, Trump refocused to the attacks on Hillary Clinton. Blasting his Democratic rival for what he called a dangerous and weak position on immigration.

(BEGIN VIDEO CLIP)

DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: Hillary Clinton wants to have them come in by the hundreds of thousands. Just remember. This has nothing to do with politics, folks. This is a whole different level. This has to do with pure raw stupidity.

She's made everybody less safe. Those 33,000 e-mails are potentially a danger to our country. We are both supposed to be briefed in the not too distant future. And I'm saying you can't brief her, you can't brief her. Let's protest.

(END VIDEO CLIP)

ROMANS: Trump getting a lot of attention though for this claim he has made again now. When he claimed yesterday he has seen video of the cash payment made by the U.S. to Iran, even though his campaign admits the video does not exist.

More now from CNN's Jason Carroll.

JASON CARROLL, CNN NATIONAL CORRESPONDENT: George, Christine, what we saw out here in Portland was a much different version of a Donald Trump. Different from what we've seen in the past. He was more focused on the issues, less name calling, less rhetoric. Back before a number of issues perhaps, it's because of all the controversies that he's been dealing with, it that could be because he's now trailing in some of the polls in key states such as Michigan and Pennsylvania.

Whatever the reason, it seems to be working again, more focus on the issues. There was one point, however, when he raised questions about that $400 million payment to Iran and continued to paint this false narrative that he talks about before and seeing this video of in exchange between money between the United States and Iran. That video does not exist.

So, no clear understanding in terms of why he continues to repeat that false narrative. But for the most part, Donald Trump staying on point, continuing to attack Hillary Clinton on a number of issues and it seemed to really resonate with many of the people that we spoke to here. They say this is the Donald Trump we need to see going forward.

And in terms of going forward, later today, he will be appearing with Mike Pence. They will be holding a joint rally that will be in Wisconsin. House Speaker Paul Ryan's home state as, you know, he has not endorsed Trump, has not endorsed Ryan, for his part, Pence has endorsed Ryan.

So for a number of reasons, that rally later today will be interesting to watch for a number of reasons. George, Christine? HOWELL: Jason, thank you. That reminds me though of the gaffe many would say about the seeing, you know, visuals of New Jersey, people celebrating after 9/11. The same thing that we're seeing at this rally where he is saying, that he saw a video of a plane going to Iran.

ROMANS: And he described that it was a nice plane. And he is describing this plane, but this campaign says that no, there is no video. Even last week, he also said, he said, you know, NFL sent him a letter. I mean someone who's used up on stage and he is, you know, spinning tales, right?

And it's an interesting counter point to this trying to stay on message about attacking Hillary Clinton.

HOWELL: But fact is a fact, is a fact and those things don't exist?

Trump and his V.P. pick Mike Pence are breaking ranks again. Pence, is now making it clear, he Supports Republican Senators John McCain and Kelly Ayotte in their re-election bids even though Donald Trump will not.

This was also a moment that happened, an 11-year-old boy who put Pence on the spot during a rally Thursday in North Carolina. Listen.

(BEGIN VIDEO CLIP)

MIKE PENCE, (R) VICE PRESIDENTIAL CANDIDATE: To run and serve as the next vice president of the United States of America and we could not be more honored and we could not be more humbled.

UNIDENTIFIED FEMALE: Is this going to be your role on the administration?

PENCE: Sometimes things don't always come out like you mean, right? And Donald Trump and I are absolutely determined to work together. We have different styles. You might have noticed that.

(END VIDEO CLIP)

HOWELL: Pence insisted their difference in style and he and Donald Trump he says have the exact same goals and vision.

ROMANS: Hillary Clinton coming under fire for repeating a debunked claim of the FBI. Clinton again insisting the bureau said she was truthful when she answered questions about using a private e-mail server even thought that claim is false.

And a brief scare for the former Secretary of state at a rally in Las Vegas, secret service agents rushing to join her on stage after animal rights activist interrupted her speech demanding she take a stronger position against the raising and killing of animals for food. Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Are you OK?

(OFF-MIC)

UNIDENTIFIED MALE: Keep talking, we handle it, we're not going to ...

HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: OK, here we are.

[04:10:05] OK, we'll keep talking and apparently these people are here to protest Trump, because Trump and his kids have killed a lot of animals, so thank you for making that point.

(END VIDEO CLIP)

ROMANS: The animal rights group direct action everywhere calling for an end to government subsidies for the meat industry. It's the same group that disrupted the Bernie Sanders rally.

All right 10 minutes pass the hour. 4:00 in the morning. Let's get an "Early Start" on your money this Friday. Global markets mostly higher after the Bank of England rolled out an aggressive stimulus package to designed offset Brexit.

Right now, U.S. Futures are higher as "Wall Street" wait this morning for the monthly job support that's in about four hours and 20 minutes.

What can we expect for July? A CNN Money survey forecast 182,000 jobs added with a 4.8 percent unemployment rate. Jobs have been volatile the past couple of months, May only added 11,000 jobs followed by a boom in June, but July's prediction is more in line with the average this year which is solid, but weaker than the prior two years when the U.S. regularly added 200,000 jobs each month.

So, is job growth slowing? Was the employment rate dropped? Wages pick up? Economists say yes, wage growth quite well low has edge stop this year and cheap gas or really cheap oil has been blamed for 195,000 job cuts since those prices first started falling in mid 2014. So set your watch four hours and 19 minutes.

HOWELL: Let's talk about some dangerous weather. A situation that we're following and we'll have that coming up.

Also, Hillary Clinton under fire for repeating a debunked claim about the FBI, Clinton again insisting that the bureau was truthful when she said those comments. We'll have that next.

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[04:15:51] ROMANS: Welcome back. 15 minutes past the hour this morning. Egypt claims it has killed the leader of an ISIS affiliate in the Sinai Peninsula. Military officials say the group's leader was taken out in a series of air strikes Thursday, nearly four dozen insurgents were killed and a number of ammunition and weapon sites destroyed.

The Egyptian army is not specifying how they know the ISIS leader is dead. There's been no response from the terror group.

HOWELL: Israel is accusing the head of a charity of siphoning millions of dollars to aid the Terror group HAMAS, officials saying Mohamed el- Halabi. The point man for World Vision in the Gaza Strip and he managed to stir $50 million by doctoring receipts and creating fake humanitarian projects.

World Vision says it is shocked by the allegations and it plans to take appropriate action based on the evidence.

ROMANS: A North Carolina man in federal custody accused of trying to recruit people for ISIS inspired attacks in the U.S. 35-year-old Erick Hendricks, was arrester Thursday, charged with providing material supports to the terrorist group. Authority say Hendricks is linked to the failed attack on the Prophet Muhammad cartoon contest in Garland Texas last year.

HOWELL: The man accused of a church massacre in Charleston South Carolina last year, was beaten by another inmate at the Charleston County jail on Thursday.

Authority say Dylann Roof was out of his cell in the protective custody unit on his was to the shower when an inmate attacked him. They say no weapons were involved in the attack. The 22-year-old Roof is accused of killing Nine African-American parishioners at Charleston's historic Emanuel AME Church.

ROMANS: Police in Georgia filing charges against the father of 15- month-old twin girls who died Thursday in a hot car incident.

They say officers responded to a 911 call last night at a home in Carlton George, found the girls immersed with kiddy pool with their father trying to revive them. The toddlers were taken to the Hospital, but did not survive. Police have seized a car at the scene and charged the father with two counts of involuntary man slaughter, two counts of reckless conduct.

HOWELL: The mayor of Stockton, California, now facing charges involving minors. Mayor Anthony Silva arrested yesterday at the Youth Camp that he runs for inner city kids.

It comes after a nearly year-long FBI investigation. Prosecutors alleged Silva supplied alcohol to those minors and that he recorded a group of young people playing strip poker in his bedroom at the camp. Among those children a 16-year-old boy.

ROMANS: All right. A tornado ripping through parts of New Orleans, take a look at this video, you can see debris flying toward this car. The twister touched down Thursday afternoon, winds gusting up to 80 miles per hour at least half a dozen homes and buildings were damaged.

The force of the twister causing the roof of this house to cave in, officials say several communities were hit hard by the storm, so far, no word of any injuries or deaths. Let's get the forecast now from meteorologist Derek Van Dam.

DEREK VAN DAM, AMS METEOROLOGIST: Well, there were seven tornadoes in total on Wednesday across the United States. One of which happened to be near the city center of New Orleans. Can you believe that? They only average one tornado through the entire month of August and it happened to be yesterday.

There were also some stronger storms out west that created damage as well. This is coming from Phoenix, Arizona. We have strong down burst after they're associated with these thunderstorms thanks to the southwest monsoon that forms across this region.

By the way another chance of stronger storms later today and the potential for flash flooding that exist across the four corners, especially as far West and Southern Nevada as well.

As we look towards the deep south, temperatures really starting to soar, especially when you factor the humidity levels from Arkansas to Louisiana as well as Alabama and parts of Tennessee and Kentucky, breaking the 100-degree mark in Dallas today, here in the nation's capital, 87. 83 degrees in New York. Back to you.

ROMANS: All right Derek, thank you for that.

[04:14:39]HOWELL: Derek thanks. They are ready for gold in Rio. The final countdown to the start of the Summer Olympics it is now under way. But the question is Rio ready? A live report, next.

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ROMANS: The official start of the 2016 Summer Olympics in Rio just hours away now. On the eve of tonight's opening ceremony, the IOC banned 118 Russian athletes from competing because of doping. The committee is ruling though it was actually a victory for team Russia.

CNN'S Christina McFarlane is live for us this morning in Rio. Good morning Christina.

CHRISTINA MCFARLANE, CNN CORRRESPONDENT: Good morning, Christine. Yes as you say, the shadow that has been cast over the Olympics came to some conclusion here on Thursday with the final result of the IOC's report, that long awaited report that 217 Russian athletes have been cleared to compete here in Rio leaving a 118 athletes banned from the events.

[04:25:01] Now, that means that Russia now has less athletes competing here in Rio than 11 other countries. And there is a feeling here now that any athlete who steps on the podium in Rio will have questions asked over credibility. But we must say that we are in the final day -- in a final build-up to the opening ceremony here in Brazil, and excitement is building.

The organizer calling the opening ceremonies tonight a Samba sensation and this is what we can expect, 6,000 volunteers in the Maracana Stadium. We'll going to see a 12-year-old rapper and dancers from 12 Samba schools and the Supermodel Gisele Bundchen will also be performing.

Now, its opening ceremony has only one tenth of the budget of the London 2012 games four years ago. It's going to be low on budget, big on soul and we hope that the torch that is winding its way to the Maracana, as we speak, will go off without incident. Remember two days ago we've got scenes of violent clashes between protesters and riot police.

Well, just a couple hours ago, it passed by our live location here. And there were thousands of people lining the street cheering it on and for the first time in these Olympic Games. It felt like an Olympic moment.

ROMANS: All right, indeed we'll watch that tonight. Thank you so much for that, Christina.

HOWELL: We were talking earlier. Those venues just from up above looks so cool.

ROMANS: I know when the sun comes up, it will be beautiful there.

HOWELL: Absolutely.

Well, Donald Trump, National Security, ISIS and Iran. President Obama is tackling all of these topics and more before he heads off for vacation. You don't want to miss what he had to say as "Early Start" returns.

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