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EARLY START

Trying to Keep Trump on Track; Clinton Attacks Trump's Businesses; London Knife Attack Kills Woman and Wounds 5 Others; Countdown to Rio: One Day to Go. Aired 4:30-5a ET

Aired August 4, 2016 - 04:30   ET

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


(COMMERCIAL BREAK)

[04:30:55] CHRISTINE ROMANS, CNN ANCHOR: The GOP reaching a new level of frustration with Donald Trump, upset over the nominee's fight over anyone who is not Barack Obama or Hillary Clinton. Can advisers steer him back on course?

GEORGE HOWELL, CNN ANCHOR: Hillary Clinton attacking Donald Trump on the economy and practices where she says Donald Trump is costing Americans jobs.

ROMANS: A deadly terror scare in London. Six people stabbed in a popular shopping districts. We go there live.

All right. Thirty-one minutes the hour. Welcome back to EARLY START. I'm Christine Romans.

Nice to see you.

HOWELL: Very good to be here. I'm George Howell. It is 4:31 on the East Coast.

And there is said to be frustration among Republican leaders upset and disappointed with their own presidential candidate. Inside the Trump campaign, staffers are baffled on how to keep Trump on message and out of trouble, frankly.

Sources revealed the campaign has reached out to Chris Christie, to Newt Gingrich and other Trump advisors looking for help to keep their nominee on the rails.

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), FORMER HOUSE SPEAKER: What's truly frustrating here is you have a very talented businessman who might actually become a historic figure, but he has to -- every morning, he has to get awake and say, the only two people I'm fighting with are Barack Obama and Hillary Clinton. And you have to take on Obama because clearly Hillary would be the third term. So, you got to win the argument about whether or not this has been good.

But other than those two people, every time he talks about anyone else, it is an unforced fumble, if you like, or interception, as I would have said. But it's clearly a mistake.

(END VIDEO CLIP)

HOWELL: One adviser tells CNN Trump himself seems surprised by the negative public reaction to his battle with a Gold Star Muslim American. For the moment, though, it looks at least that Trump is taking advice of party leaders, reaching out to other Gold Star families at a rally and turning his fire back on Hillary Clinton. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: We let ISIS take this position. It was Hillary Clinton that she should get an award from them as the founder of ISIS. That's what it was. That's what it was, her weakness, her weak policies.

America's been again, it's been humiliated in so many different ways. Wouldn't that be embarrassing to lose to crooked Hillary Clinton? That would be terrible.

(END VIDEO CLIP)

HOWELL: Our own Jim Acosta is with the Trump campaign and has the latest for us from Florida.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: George and Christine, after a string of damaging days, Donald Trump trying to do a little damage control at a couple of rallies in the critical swing state of Florida. At the rally in Jacksonville, Trump told the crowd he met with six Gold Star families to express his appreciation for the sacrifices they've made. That's close as Trump has come to an apology after his confrontation with a family of a fallen Muslim-American soldier.

Here's more of what Trump had to say to this crowd here in Florida.

TRUMP: Speaking of our vets, people, we have and I just visited with some incredible folks. I have no idea where they are sitting, but I know they have a good location, some really amazing Gold Star families.

Where are they? Where are they? Where are they sitting? Oh, you're one. Beautiful.

Where are they? There they are. Incredible people. Incredible people.

(APPLAUSE)

We have amazing people in our country. We have amazing leaders.

ACOSTA: Trump only briefly addressed the questions of the state of his campaign after sources said privately that staffers are frustrated by the candidate's ability tendency to occasionally go off-message. At this recent comments that he's not ready to endorse House Speaker Paul Ryan in his battle for reelection.

[04:35:01] Trump told a crowd here in Florida that his campaign is united -- George and Christine.

(END VIDEOTAPE)

ROMANS: All right. Jim Acosta, thanks.

Let's break down this united party behind Donald Trump. What others are calling a breakdown in the Republican Party.

Senior media correspondent Brian Stelter, host of CNN's "RELIABLE SOURCES" is here bright and early this morning.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: Good morning.

ROMANS: Brian, I want to play something that Donald Trump said yesterday in Daytona Beach, something else he said yesterday in Daytona Beach. He is clearly hearing the criticism both off the record and on the record from folks around.

And you heard Newt Gingrich in that piece talking right on FOX News, saying, hey, you've got to stop talking about everybody else and focus on Hillary Clinton and Barack Obama.

And Donald Trump really trying to say, hey, we are united. I am united. Listen.

(BEGIN VIDEO CLIP)

TRUMP: So, I just wanted to tell you the campaign is doing really well. It has never been so well united. We started on June 16th. I would say right now it's the best in terms of being united that it's been since we began. We are doing incredibly well.

(END VIDEO CLIP)

ROMANS: All signs point to not well.

STELTER: Yes, we can say that is not true, but there's good reasons why Trump is saying it. You look at the polls, the most recent poll by FOX News, it shows Clinton with a ten-point lead. And you look at both the on the record and unanimously sourced quotes from party leaders and fundraisers and supporters of Trump, almost all of them saying this man has to reset and reshape his campaign.

Trump is hearing and seeing and watching all of that, and he is having to reassure people he has it under control. I think he is trying to do that through that sound bite by saying we are united, even though there are so many signs of fracturing.

HOWELL: Well, let's talk about the master of the message and the guy who is cleaning up the message, Mike Pence, his running mate, especially when it comes to the rift, Brian, with the speaker of the house. Listen to what Mike Pence had to say endorsing the speaker when Trump is not.

(BEGIN VIDEO CLIP)

MIKE PENCE (R), VICE PRESIDENTIAL CANDIDATE: I'm strongly supporting Paul Ryan. Strongly endorse his re-election. He is a long-time friend. He's a strong conservative leader.

I believe we need Paul Ryan in leadership in the Congress of the United States.

(END VIDEO CLIP)

HOWELL: So just the optics of that, the top of the ticket not endorsing. The V.P. doing so. Does that work?

STELTER: You could say they get the best of both worlds here. Donald Trump is aligned with his base and Republican voters who distrust Paul Ryan. You have Mike Pence behind him. The less optimistic argument is Donald Trump and Pence can't see eye to eye, and can't connect on even the most basic of issues involving their ticket.

Can you imagine if Hillary Clinton and Tim Kaine couldn't even agree, how they're going to support the minority leader and, you know, with the Democrats? So, a real tension we have seen time and time between Pence and Trump on several different issues. But, again, maybe that is not necessarily a bad thing right now because they are able to have it both ways.

ROMANS: Can we talk about ties -- can we talk about ties made in China? Hillary Clinton making the economic point that Donald Trump cost American jobs because he makes ties in China. She was standing in a tie shop in Colorado. The optics of it interesting. She was holding up one of his ties.

But, you know, this line has not hurt him yet, I don't think. We have known for a long time that he makes his products overseas. He said and deflected rather well by saying, look, it's your stupid trade policies to make it advantageous overseas. Why not get tough and American manufacturers can make stuff in America.

Do you think as we fade away from the Khan controversy, if Team Clinton is pointing to ties, is that going to be a real powerful message against Donald Trump?

STELTER: I don't think it's the kind of message that causes voters in these polls to answer differently. That's why I mentioned what we are seeing from his base. We are seeing remarkable support and strength as we have for a year among the Republican base in support of Trump. This current state of panic is among the Republican thought leaders and establishment figures and elites.

There is a disconnect. What we have seen with the Trump controversy is the disconnect with the base and elites of the party. The base of the party I don't think is going to be swayed by Hillary Clinton talking about where Trump makes ties. However, fundamentally, Donald Trump's challenge is how he persuades

new people to come into his tent. We are not seeing him doing that right now. All of the data in the FOX poll and all the data in the CNN poll earlier this week shows how difficult it has been for him to convert anyone who is on the fence to bring them over to his side.

Ultimately, that is what we hear from the Newt Gingrich of the world. FOX News is a war room for Donald Trump giving him free advice all day long. But especially on programs like Sean Hannity's last night.

The message is stop talking about yourself.

[04:40:01] Start talking about Hillary Clinton. Start attacking her, focus on her.

So, we'll see if he tunes in to that. He did that yesterday. But can he keep it going every day?

HOWELL: Brian, I want to talk about video that has been published by "The New York Times." it includes what you hear. Comments heard at Donald Trump rallies. Let's talk about it here after we listen to it on the other side.

(BEGIN VIDEO CLIP)

CROWD: Build that wall! Build that wall! Build that wall!

UNIDENTIFIED MALE: I'm sure that paperwork comes in Spanish.

UNIDENTIFIED MALE: Ignorance and immigrants, they mix together.

UNIDENTIFIED FEMALE: If you don't speak English and don't contribute, get out.

(LAUGHTER)

UNIDENTIFIED MALE: Hillary Clinton needs to get her ass spanked.

UNIDENTIFIED MALE: (EXPLETIVE DELETED) Hillary!

(END VIDEO CLIP)

HOWELL: So again, that piece of editorial pushed out by "The New York Times." it includes racial slurs and derogatory comments. But the question, is it fair from the media perspective? Because you can go to many events, you can find fringes on many different sides. Your thoughts?

STELTER: I think the Trump campaign will try to me a video like this involving Clinton's rallies. They won't find the same invective. But the reality is, at the Trump rally, there are many kind and there are many gentle people. There are many angry people.

The reason why "The Times" produced this video is because we have not seen this before. For example, in 2008 or in 2012. We did not see on the campaign trail the same degree of vitriol and highly personal and highly hostile comments in some cases, racial slurs, in some cases very gendered comments.

I think "The New York Times" is so to something here. Many journalists would say the same thing. There is also that danger of picking up the wrong side brush and painting too broadly. That's what we'll hear from Donald.

If Donald Trump doesn't respond to the video, he will say "The Times" is trying to attack all of his supporters as highlighting a few of them.

Once again, though, it plays into Donald Trump's war with the media. This is the kind of video that's going to enrage and really tick off his supporters out there. It could be a very potent talking point for Trump as he continues to criticize the media. It's been very effective for him, as we know thus far.

ROMANS: Already, some Trump supporters say that's just picking some bad apples and that's politically correct. Mainstream media trying to find a few bad apples, packed it all together to hurt Donald Trump.

STELTER: The takeaway I have from the video, is what Trump is saying on stage is causing the hostile reactions. It is about the man on stage and what's triggering the reactions from the crowd. That is why I thought the video mattered.

HOWELL: And also important to point out, the video is coming from people in the crowds versus the reporters who are kept in a certain area. That is part of the video. Thank you.

ROMANS: Thanks, Brian.

STELTER: Thanks.

ROMANS: All right. Time for an early start on your money. Stocks snapped a seven-day losing streak with a rally in oil prices. A blah earning season. Now the page turns to the big government jobs report tomorrow morning.

Donald Trump giving concrete details on how he would grow the economy if elected president. It is literally concrete. He vows to outspend Hillary Clinton fixing America's roads and bridges.

Trump told FOX News Tuesday he will double Clinton's $275 billion infrastructure plan, a move praised by experts on both sides of the aisle. A lot of economists like an infrastructure build, especially with interest rates low. It is a rare point of agreement for the two candidates.

Here is what we know about their plans for your money, their other plans for your money. Hillary Clinton wants to raise the minimum wage, make state universities debt free and tax people making $1 million a year or more at a 30 percent rate.

Trump wants to cut taxes across the board, including for the very wealthy and companies. He wants to impose high tariffs on trade, something that many experts worry could cause a trade war. All right.

HOWELL: We are following the deadly terror scare in London. A man with a knife stabs six people at a popular shopping area. The newest details we are learning next.

(COMMERCIAL BREAK)

[04:48:25] ROMANS: A terror scare in the heart of London. A man with a knife going on a stabbing rampage in a popular shopping center last night. One woman is dead and five wounded. One wounded is an American. Police are not ruling out terrorism.

CNN's Phil Black is in London, joins us from the scene of the stabbings.

But some officials have been suggesting that mental illness is a factor there that they are investigating as well. What can you tell us about this suspect?

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Yes, Christine, the police are being careful with the language they are using through the night. They made it clear early on that they believe mental health played a significant role in what took place here. Police said they were keeping an open mind. They had not rule out terrorism.

The latest police statement against focused on the mental health issues, saying that's the main line of inquiry. So, they asked, still keeping an open mind to motive. They did not mention terrorism at all.

It all took place behind me. Just a few minutes. This is where the police say a 19-year-old man with a knife begin attacking people seemingly at random, and struck six people.

And it was just here that a woman in her 60s, this is where she died as a result of her injuries. Two other people receiving treatment in hospital because of the injuries they sustained.

The police responded very quickly. They chose not to use guns, but brought this man down using a taser. He then received medical treatment, but he is also being held in custody on suspicion of murder.

So, not a terror charge. This investigation is still being led by homicide police, not terror police.

[04:50:02] So, it does all point to the likelihood the police believe there may not be a terror link here, although they are not saying so explicitly just yet.

Whatever the motive, though, no doubt, this was a terrible scary thing to happen in central London on a Wednesday night. So, the authorities here say they are responding by putting more armed police, those specially trained to deal with live terror incidents. They are patrolling public places in central London today. Not to concern people, they say, but to reassure people that measures are being taken to protect them.

ROMANS: All right. Phil Black for us in London this morning -- keep us posted on developments of the story. Thanks, Phil.

HOWELL: Back here in the United States, Florida's Miami-Dade County, aerial spraying is set to start a few hours from now covering a ten- square mile area where officials confirmed 15 cases of the Zika virus transmitted by mosquitoes. The CDC has warned pregnant women and their partners to avoid traveling to the Wynwood area of Miami. That's where all but one Zika cases was identified. The Zika virus can cause severe birth defects.

Florida's Governor Rick Scott says free Zika testing will now be offered to all pregnant women across the state.

ROMANS: In the fight over transgender rights, the Supreme Court is siding with the school board in Virginia. The ruling temporarily blocks a lower court decision that would have allowed a transgender male high school student to use the boy's restroom when school begins in September. School officials in Gloucester County made an emergency appeal to exempt them from an Obama administration edict that schools nationwide must permit students to use restroom fitting their gender identity.

All right. Fifty-one minutes past the hour. Most millennials fear they are not making enough money to retire. They are already thinking about retirement. That's good. We'll tell you why on an early start on your money.

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[04:56:09] HOWELL: The countdown to the Rio Olympics, it is almost over. The opening ceremony takes place tomorrow night, but I appears many Russian athletes may witness the light of the cauldron from the stands. They could be banned over the issues of doping.

CNN's Christina Macfarlane is live in Brazil in this morning.

Christina, good to have you.

CHRISTINA MACFARLANE, CNN CORRESPONDENT: Yes, George.

It is staggering that some 200 athletes from the Russian organization don't know whether or they're going to be able to compete here in Rio. This delay is due to a three-part process we have seen unfolding.

Let's talk you through it briefly. Now, the sports governing bodies have been deciding on the eligibility of the athletes. Anyone deemed ineligible has had the ability to appeal to the arbitration for sport. The highest court to have their ban overturned.

In the past 24 hour, we've heard that 17 rowers have been ruled ineligible. One sailer has had his decision overturned. Once that process is done, it is not done yet. Those eligible Russian athletes need to go through an IOC three-person panel to get the rubber stamp to compete at the games. We expect the final decision to come in the form of the press release

between now and the opening ceremony. Understandably, there is a great deal of anxiety not just for the Russian athletes, but for all other athletes in the games, because it has implications for the medal tallies. Russian came fourth in the medal count in 2012.

We saw the sports get under way here in the past 24 hours with the soccer. But it's fair to say this Russian doping crisis is overshadowing that. Let's not hope it overshadows the opening ceremony.

We understand, there are some 6,000 volunteers are taking part in that tomorrow night. Some $3 billion have been spent on making this a spectacle that the world will not forget.

HOWELL: The excitement certainly building. Fair to say it will be interesting to see what happens with the Russian athletes. Christina Macfarlane live for us in Rio, Christina, thank you.

ROMANS: All right. Time for an early start on your money this morning.

Stocks snapped a seven-day losing streak with a rally in oil. The market lost momentum. Lackluster earnings season overall. If you look at markets right now, you can bit of a continuation today. Time Warner, parent company of CNN, jumped 2 percent on the news it would acquire a stake in streaming service Hulu, also a pretty solid report there.

And Tesla shares are down pre-market, after reporting another quarterly loss. Investors today looking ahead to the monthly jobs report, which comes out tomorrow. Right now, futures are flat.

All right. You know the chip-based credit cards? Well, computer researchers have found another flaw in that system. The chip is supposed to make cards impossible to counterfeit, but researches show this week tht thieves can rewrite the magnetic strip to appear chipless. How can you protect your self? Shops should fully encrypt every transaction even if a card has a chip.

Most millennials fear they will not save enough money for retirement. A brand new survey by Wells Fargo found 2/3 of working millennials say they will never ever accumulate a $1 million nest egg. It's a common nest egg target for a comfortable retirement. Only six our ten polled say they are saving it all. The others reported they weren't making enough money to put away.

Two problems for millennia millennials, they don't make enough money and paying off debt.

HOWELL: You hear so much pessimism though among millennials.

ROMANS: I know. Why some people call it a lost generation. I'm optimistic. I'm optimistic with millennials. I think they will get through just fine. They should start saving as soon as you can. There you go. HOWELL: Optimist. Excellent.

EARLY START continues right now.

(MUSIC)

ROMANS: The GOP reaching a new level of panic over Donald Trump upset that their party's nominee tends to go off message far too often. Trump's reaction to the criticism and the new advice he has been given.