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EARLY START

Clinton Hammers GOP On Immigration; Federal Agent's Gun Used In San Francisco Shooting; FBI Raids Home Of Subway's "Jared"; U.S.-Led Iran Talks Extended Again; Army Plans To Cut 40,000 Troops; New Bill Cosby Fallout; NTSB Investigating Midair Crash; Greece Shows Up With No Written Proposal; Chinese Stocks Plunge. Aired 5:30-6a ET

Aired July 8, 2015 - 05:30   ET

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


CHRISTINE ROMANS, CNN ANCHOR: Only on CNN this morning, Hillary Clinton goes after Republicans Donald Trump and Jeb Bush for their stances on immigration. Clinton sat down exclusively with CNN's Brianna Keilar for the first national interview of her presidential campaign.

She says she is, quote, "very disappointed" in Donald Trump for his portrayal of Mexican immigrants as rapists and drug dealers.

[05:30:04] And Clinton now took aim at Bush accusing him of reversing himself and now opposing a path to citizenship for undocumented immigrants.

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN SENIOR POLITICAL CORRESPONDENT: Donald Trump is also creating quite a lot of commotion on the other side. He's a friend of yours, has been over the years. He donated to your Senate campaign and to the Clinton Foundation. What is your reaction to his recent comments that some Mexican immigrants are rapist and criminals?

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I'm very disappointed in those comments and I feel very bad and very disappointed with him and with the Republican Party for not responding immediately and saying enough, stop it.

But they are all in the -- you know, in the same general area on immigration. You know, they don't want to provide a path to citizenship. They range across a spectrum of being either grudgingly welcome or hostile toward immigrants, and I'm going to talk about comprehensive immigration reform.

I'm going to talk about all of the law-abiding productive members of the immigrant community that I personally know and that I've met over the course of my life, that I would like to see have a path to citizenship.

KEILAR: But what about Jeb Bush's approach to that? It's different certainly than Donald Trump's --

CLINTON: He doesn't believe in a path to citizenship. If he did at one time, he no longer does. Pretty much -- as I said, they are on a spectrum of, you know, hostility, which I think is really regrettable in a nation of immigrants like ours, all the way to kind of grudging acceptance but refusal to go with a pathway to citizenship.

I think that's a mistake. I think we know we're not going to deport 11 million or 12 million people. We shouldn't be breaking up families. We shouldn't be stopping people from having the opportunity to be fully integrated legally within our country. It's good for us.

It's good economically. It's good for the taxes that will be legally collected. It's good for the children so that they can go as far as their hard work and talent will take them. So I am 100 percent behind comprehensive immigration reform that includes a path to citizenship.

(END VIDEOTAPE)

ROMANS: Thanks, Brianna for that. You know, the Jeb Bush campaign responding this morning to Clinton's comments about his stance on immigration. A spokesperson for the former governor says he believes immigrants who had here illegally should be able to earn legal status after paying fines, taxes and learning English.

Hillary Clinton also speaking out against the city of San Francisco and its lenient treatment of undocumented immigrants, she blamed San Francisco's sanctuary city law and local officials for failing to hand an undocumented felon over to federal authorities before the man allegedly shot a woman to death at a public pier.

(BEGIN VIDEO CLIP)

CLINTON: The city made a mistake. The city made a mistake not to deport someone that the federal government strongly felt should be deported. So I have absolutely no support for a city that ignores the strong evidence that should be acted on.

(END VIDEO CLIP)

ROMANS: New information in that San Francisco shooting. Sources telling CNN the gun used by the suspect belonged to a federal agent. That suspect, a repeat felon, was illegally in the country and pleading not guilty to murder on Tuesday. In San Francisco for us this morning is CNN's Sara Sidner.

SARA SIDNER, CNN CORRESPONDENT: Christine, another strange twist in this case, a source with knowledge of the investigation told us, that indeed, the gun that was used in this case, actually traced back to a federal agent.

Now, we don't know which one and we don't know how that all came about, but we understand the gun was recovered in this case. This is happening on the same day that the suspect, Juan Francisco Lopez Sanchez was in court.

He was asked whether or not he was guilty or not guilty of the crime of murder in the Kate Steinle case and he said, in Spanish, not guilty. He was also asked several other questions, but really the only answer he kept giving the court was not guilty. He seemed not to understand some of what was going on in court. His attorney say he only has a second grade education and that he had no prior violent felonies in his past, that this was a complete accident, a random act.

He has also talked to a couple of local stations here in jailhouse interviews and gave conflicting information when asked about this particular case. His next court date is July 20th. He is being held in jail on a $5 million bond -- Christine.

ROMANS: All right, Sara Sidner, thank you, Sara.

The Subway sandwich chain is suspending its relationship with pitchman, Jared Fogle, after an FBI raid on his Indiana home. Investigators seizing computers and other electronics.

[05:35:03] Subway in a statement says, "This investigation may be linked to child pornography charges against another man, a man who used to work for Fogle as head of the Jared Foundation. That organization fights childhood obesity. CNN's Ryan Young has the latest.

RYAN YOUNG, CNN CORRESPONDENT: Christine, this is an evolving investigation. In fact, we have been watching it for the last day or so. I can tell you investigators showed up around 6:30 in the morning and they went through the home.

In fact, we see video of them coming out with hard drives and computers. We also have been told that they brought special investigative dogs that can sniff out hidden electronics and brought them around the perimeter of the home.

We do know that when they arrived the family was inside sleeping. His wife and two kids were allowed to leave. Jared stayed for most of the afternoon but police, so far, not telling us what is going on with this investigation.

We do believe it's connected to a former Jared Foundation employee who has been charged with several counts of child pornography. Now Subway, late in the afternoon, released this statement that said, "Subway and Jared Fogle have mutually agreed to suspend their relationship due to the current investigation.

Jared continues to cooperate with authorities and he expects no actions to be forthcoming." Both Jared and Subway agree that this was the appropriate step to take. People in the neighborhood tell us they were shocked.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The only thing I ever see around his home are happy people doing their yard, waving, so I'm shocked and I'm sad, of course and saddened, a great figure in our community. Just have nothing bad to say about him.

(END VIDEO CLIP) YOUNG: Christine, something that we noticed throughout the afternoon, it seemed like Subway started going through the website and started dropping Jared's name from several sections of the web site. Everyone is still waiting for investigators to give some comments on what they found during this investigation.

ROMANS: All right, thank you for that, Ryan.

The U.S. and world powers once again extending their deadline with nuclear talks with Iran. Both sides hoping to hammer out a final nuclear deal by the end of the week. Senior international correspondent, Nic Robertson is in Vienna. The clock ticks, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It certainly does. It does seem that these days, today after we have just missed the deadline, a new deadline is set for Friday, that events happen at a slower pace. No meetings we are aware of so far.

What we have heard from senior administration officials that they hope that everything that has been agreed so far with Iran will be enough to convince Iran to take the last few steps and cross some of their red lines.

What are Iran's red lines right now? Perhaps the biggest one and certainly the one most pushback at the moment is the call for a lifting of an arms embargo put in place by the U.N. Security Council on Iran to get them to come to the nuclear negotiating table in the first place.

The Iranians say they won't sign a broader nuclear deal unless that arms embargo and ballistic missiles ban is lifted, but that doesn't seem to be in offer at the moment.

Perhaps where there can be some kind of resolution here that after an agreement is made, it will go the U.N. Security Council for a larger resolution that it encompasses this agreement.

It is possible that in the text of that, Iran may find the answers that it's looking for on this weapons ban but, at the moment, that seems to be a big outstanding issue at the moment.

While a lot of progress has been made across many areas, all areas, we are told, it's still not clear, according to this senior administration official, still not clear if the deal can actually be done. They are ready to walk away if it looks like it's a bad deal is what we are told -- Christine.

ROMANS: All right, Nic, thank you for that in Vienna. We know you'll keep us up-to-date if a deal gets done.

Defense Secretary Ashton Carter stunning senators during his testimony on the U.S. strategy to defeat ISIS. He told the Armed Services Committee the U.S. has only trained 60 Syrian rebel fighters, a far cry from the Pentagon goal of training 5,000 fighters each year, just 60 so far. Carter says it's hard finding fighters who are willing to focus only on ISIS and not the Assad regime. The U.S. Army is set to cut 40,000 troops for the next two years. A U.S. defense official tells CNN these layoffs are likely to affect all of the Army's domestic and foreign posts and an additional 17,000 civilian Army employees will also be laid off. The document says the reduction is due to budget constraints.

New fallout for Bill Cosby after court documents revealed his stunning sex and drug confessions. New developments overnight next.

(COMMERCIAL BREAK)

[05:43:07]

ROMANS: Welcome back. It's 43 minutes past the hour. New fallout this morning in the wake of revelations that Bill Cosby obtained drugs to give women he intended to have sex with. Two TV networks, Bounce and Centric, announced they are pulling reruns of "The Cosby Show."

And a statue of the comedian has been removed from Disney's Hollywood Studio's theme park in Orlando. The bronze bust came down after the park closed Tuesday night.

While support for Cosby is eroding, he still does have high profile defenders.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don't like snap judgments because I've had snap judgments made on me. So I'm very, very careful, and, you know, save your texts, save your nasty comments because I don't care! Only because -- and I say this -- I say this because this is my opinion and in America, still I know it's a shock, but you actually were innocent until proven guilty. He has not been proven.

(END VIDEO CLIP)

ROMANS: More than two dozen women claim Cosby sexually assaulted them. Many say they were drugged. Cosby has long denied those allegations. He has never been charged with a crime. As for the latest revelations, his publicist says, quote, "We have no plans to issue a statement."

This morning, officials are investigating a deadly mid-air collision between an Air Force fighter jet and a small private plane over South Carolina. Two people aboard the civilian aircraft were killed. The military pilot safely ejected. This woman witnessed the crash as it happened.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I just seen one plane coming this way, one going this way and then, it exploded in mid-air and fireball and then the plane landed in my yard! I can't do this!

(END VIDEO CLIP)

ROMANS: Officials say the F-16 was on an instrument training mission into joint base Charleston.

[05:45:06] Breaking news this morning, world markets in chaos, China's stock in a free-fall, Greece days away from being kicked out of the euro, and U.S. stock futures down sharply this morning. Live team coverage breaking it all down next.

(COMMERCIAL BREAK)

ROMANS: U.S. stock futures sinking, China stocks collapsing and Greece just days away from being kicked out of the euro. Eurozone leaders are meeting right now telling Greece it has until Sunday to agree on a new bailout plan. European stocks up slightly.

This is Greece's last chance to strike a compromise. Separately, it's a blood bath for China stocks. The Shanghai Composite fell 6 percent. More than half of all the companies listed are not trading. They have halted trading. Investors can't even get out if they wanted to.

In Hong Kong, the Hang Seng also fell 6 percent. The Chinese government is doing everything it can to rescue those markets. Cutting interest rates and forcing brokerages to buy billions of dollars in stocks, but investors are clearly not convinced.

We have got team coverage tracking both of these important stories from Hong Kong to Athens. I want to start in Greece right now facing a hard and fast deadline this morning. European leaders giving Greece until Sunday to fix its mess or get out of the euro. Live in Athens is CNN's Isa Soares for the latest -- Isa.

ISA SOARES, CNN CORRESPONDENT: Christine, that message couldn't be any clearer. Greece is fast running out of deadlines.

[05:50:07] They have to put their house in order, push those reforms through and serious reforms or get out. That was the message from Eurozone leaders meeting yesterday.

Right from Chancellor Merkel, Francois Hollande, and many others saying this is it, this is the last chance. Yesterday, the Greek new finance minister is described as a breath of fresh air. He showed up with bullet points of proposals that he gave as an oral presentation but that was it.

Then the Prime Minister Alexis Tsipras met with E.U. summit leaders and also didn't push through his proposal, no written proposals. So now Europe is telling Greece very clearly you have to put proposals through by Thursday and then we will reach a decision by Sunday. The clock is clearly ticking.

Today, we heard from Alexis Tsipras in the last hour or so. He, yet again, saying to the European parliament that had has a mandate from the people to push back on those reforms. At the same time, he says he is confident they will meet obligations, but people in the streets are very worried. The time is running out.

And that perhaps Greece will say no to a lot of these austerity measures and need more reforms because Europe says prices are being so bad and the country has deteriorated as such a speed that you will need reforms. Now it's up to Tsipras.

ROMANS: Now it's up to Tsipras. Thank you for that, Isa. Thanks.

Now to China where the market is in free-fall, a bubble bursting, folks, trillions of dollars in value wiped out. Stocks there have crashed 30 percent, 30 percent in the past few months.

Joining us live from Hong Kong is CNN's Andrew Stevens. Andrew, this is a market that is closed to U.S. investors. It's really a domestic market. Why does it matter for the rest of the world?

ANDREW STEVENS, CNN CORRESPONDENT: It matters because China is still is the world's second biggest economy and there is absolute turmoil in that market. At this stage, Christine, it doesn't appear that it's going to spill over into the real economy, if you like, in a significant enough way to have a big impact.

But certainly, if you just look at the numbers, as you say, 30 percent down in three weeks, $3.25 trillion, trillion with a "t" wiped off the value of the stock markets in China. And just as interesting, the central authorities, the government, cannot get this under control.

And they are pledging they will do everything they can. They have directed the state-owned institutions to stop buying big stocks, small stocks, you name it. They are cutting interest rates. They are doing whatever they can.

And, at the moment, it is not working which means, of course, that in the full glare of Chinese publicity the central government is losing credibility, faith, it can't deal with this, which is, A, embarrassing, but B, could have big ramifications.

Because if the fear factor does take control in China, then the government can't wrap their hands around this and deal with it, you end up with people holding on and it may then start impacting on the world second biggest economy.

We are already seeing a bit of contagion in the other Asian markets. So, Christine, this is not over yet.

ROMANS: Not over yet. Andrew Stevens, we know you'll be watching it for us. Thanks, Andrew.

So Greece and China are rocking the stock markets. U.S. stock futures down sharply this morning, but I'll tell you about the most magical stock on earth next.

(COMMERCIAL BREAK)

[05:55:00]

ROMANS: All right, welcome back. I'm Christine Romans. Let's get an EARLY START on your money this morning. U.S. stock futures sharply lower. There is a looming new deadline in Greece's debt crisis and an absolute collapse in China stocks. Investors are angry with Greece. They are fearful in China, but they are only feeling joy when it comes to Disney.

The stock is at a record high of more than 20 percent this year thanks in part to the Pixar hit "Inside Out." That movie has brought in $250 million in the U.S. since its June release. Disney has two other movies in this year's top five.

"Avengers, Age of Voltron" is number two. The live action "Cinderella" is fifth and to top it off, the seventh episode of the "Star Wars" franchise comes out just before Christmas.

Other big winners in the stock market this year, Netflix is the biggest winner in the S&P 500, look at that. Shares have almost doubled this year.

Also soaring this year is EA Games, Amazon at 41 percent, Hasbro at 39 percent, and Starbucks up 33 percent. Again, stock futures pointing sharply lower because of the turmoil in Greece and China.

Your next family cruise could be to Cuba, Carnival plans to set sail to the islands next May. It has approval from the U.S. government. It's waiting for the thumbs from Cuba. Carnival is already accepting reservations for a seven-night trip starting at just under $3,000.

U.S. regulations say all trips to Cuba must meet certain social, cultural, and humanitarian criteria. So Carnival, cruise line, is including things in the cruise like environmental preservation and food and art studies to meet those requirements. Those cruises start to set sail next May.

Stunning new information in that San Francisco shooting that has ignited an immigration debate across the country. That new information and more on that debate, "NEW DAY" picks it up right now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: An undocumented Mexican immigrant pleading not guilty to murder.

UNIDENTIFIED MALE: Very well could be a completely accidental discharge of a firearm.

UNIDENTIFIED FEMALE: The gun that was used in this case, actually traced back to a federal agent.

UNIDENTIFIED FEMALE: I, myself, was drugged by Cosby.

UNIDENTIFIED MALE: The Quaalude is a medication that causes memory difficulty and severe intoxication.

UNIDENTIFIED FEMALE: In America, you actually were innocent until proven guilty.

CLINTON: I am 100 percent behind comprehensive immigration reform that includes a path to citizenship.

KEILAR: What is your comment to his recent comments that some Mexican immigrants are rapists and criminals?

(END VIDEOTAPE)

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to your NEW DAY. It is Wednesday, July 8th, 6:00 in the east.

Up first, the undocumented immigrant that shot and killed a San Francisco woman used a gun belonging to a federal agent. Reports this morning that he got his hands on the weapon after breaking into the agent's car last month.

ALISYN CAMEROTA, CNN ANCHOR: The suspect, Juan Francisco Sanchez, pleading not guilty in court despite that videotaped confession that we all saw. That admission is in question after he apparently had a hard time understanding English in court.

All of this as the blame game intensifies over why the five-time deportee was released from jail. So let's begin with CNN's Dan Simon. He is live in San Francisco with all the latest. Good morning, Dan.

DAN SIMON, CNN CORRESPONDENT: Good morning, Alisyn. What a twist this story has taken.