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EARLY START

Trump Mocks Rubio's 3rd Place Finish; Sanders Leading Among Younger Voters; Zika Contracted Sexually; French Scientists Work On Zika Vaccine; U.S. Military To Use Airstrip In Kurdish-Controlled Syria? Aired 5:30-6a ET

Aired February 3, 2016 - 05:30   ET

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


(COMMERCIAL BREAK)

[05:30:38] CHRISTINE ROMANS, CNN ANCHOR: The race for president on to New Hampshire where Bernie Sanders and Donald Trump are on top of the polls, but will Iowa's caucuses -- CNN town hall, will that shake up this race?

JOHN BERMAN, CNN ANCHOR: A new warning about the Zika virus causing serious concern this morning. Transmitted in the United States for the first time, not by mosquito, but by sex.

ROMANS: The U.S. expanding its presence in Syria with a new strategy to fight ISIS. We take you there in a CNN exclusive ahead.

Welcome back to EARLY START. I'm Christine Romans.

BERMAN: I'm John Berman. 31 minutes past the hour right now.

It's all about New Hampshire. Hillary Clinton and Bernie Sanders, they are there battling vote for vote. This after Hillary Clinton was declared the winner of the Iowa caucuses finally yesterday about 1:00. CNN declared that she won, as did the Iowa state Democratic party. New Hampshire this morning, a different story. Bernie Sanders has been leading in the polls there by a wide margin. Hillary Clinton now trying to cut into that lead as best she can. Of course, there is the CNN town hall tonight.

Let's get the latest from CNN's Jeff Zeleny.

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: John and Christine, the Democratic race for the presidency is down to two candidates: Hillary Clinton and Bernie Sanders. They will both be on center stage at the CNN town hall tonight in Derry, New Hampshire. They could not be presenting different arguments here. Bernie Sanders is going to call for political action, to join his movement, to join what he calls a revolution, to change campaign finance, to change Wall Street. Hillary Clinton is urging people to fight for the direction of the Democratic party, to do what is possible, to do things that are practical. Both of those arguments were on display as they flew from Iowa to New Hampshire on Tuesday, making their case, beginning to make their appeals to New Hampshire voters.

(BEGIN VIDEO CLIP) HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I think it's important people understand that good ideas are one thing, but you've got to know how to implement. You've got to have a record of getting results, and I'm taking my ideas and my record to the people of New Hampshire this week.

SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: Last night we showed that working people, lower-income people, and young people are prepared to stand up and fight for fundamental changes in the way politics and economics is done in America. The political revolution continues next Tuesday here in New Hampshire.

(END VIDEO CLIP)

ZELENY: Those differences in styles will be front and center when they join that CNN town hall tonight in Derry, New Hampshire. John and Christine --

ROMANS: All right, Jeff Zeleny. Thanks, Jeff. A dramatically new tone and new reality in the Republican race with several candidates on the attack on several different targets. Donald Trump has enjoyed a big lead in the polls there. 18 points ahead of Ted Cruz but that was all before he lost Iowa to Cruz. Now the two top candidates are aiming their fire not at just each other but also at Marco Rubio and at the media spin that Rubio 's third place finish in Iowa was better than cast.

(BEGIN VIDEO CLIP)

SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: Everyone was saying, what do you think about the amazing third place finish of Marco? And I just kind of laughed and said, gosh, is the media giving a tell there when the first thing you want to talk about is the amazing third place finish? We've been joking that in media world, bronze is the new gold.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: He comes in third. I come in second. Trump, no good. Rubio, unbelievable night. Unbelievable victory. The headline is, winner of the night, Marco Rubio.

(END VIDEO CLIP)

ROMANS: Joining us this morning to talk about it, CNN politics reporter Tom LoBianco, live in our Washington bureau. Good morning. Winner of the night, Marco Rubio. You know, it's rare to see Donald Trump talk about not winning as a positive.

TOM LOBIANCO, CNN POLITICS REPORTER: It's something else. You know, it's so interesting. This is the expectations game. That's what it's all about. And for a guy like Trump whose entire narrative, his entire story is winning, second is no good. It just does not look good at all. And that's where Rubio, there was almost no expectation of how he would perform in Iowa. He kind of surged late and then almost knocked off Trump. Of course, him and Cruz -- Trump and Cruz are kind of surprised by this, but that is so important, setting the expectations right and then clearing that bar. That is an absolutely essential part of the race.

[05:35:06] BERMAN: If only Donald Trump had come in third, he'd be able to declare victory this morning. Clearly that's where he went wrong in this whole bizarre media expectation. I think Ted Cruz has got a legitimate gripe right here. He won Iowa outright and no one's talking about his clear victory there, dramatic come-from-behind victory. Marco Rubio who won by getting the bronze medal inexplicably, now in New Hampshire facing Donald Trump, Ted Cruz, but also these establishment lane opponents. The governors, Chris Christie, Jeb Bush, John Kasich, and they're going to play tough, right? We heard Chris Christie talking about Marco Rubio yesterday. Let's listen.

(BEGIN VIDEO CLIP)

GOV. CHRIS CHRISTIE (R-NJ), PRESIDENTIAL CANDIDATE: We know who the boy in the bubble is up here who never answers your questions, who's constantly scripted and controlled, because he can't answer your questions. So when senator Rubio gets here, when the boy in the bubble gets here, I hope you guys ask him some questions.

(END VIDEO CLIP)

BERMAN: When the boy in the bubble gets here. That's some pretty hard-hitting stuff there.

LOBIANCO: Is that a Seinfeld reference?

BERMAN: I think he's talking more about the John Travolta film from the "Welcome Back Cotter" era, but we also like the Seinfeld reference.

LOBIANCO: Christie is the best example of what he needs to get ready for, of course. There's a guy who speaks his mind and has an incredibly sharp tone. And this -- John Kasich, Chris Christie, Jeb Bush, they have all poured everything they've got into New Hampshire. I mean, this is do or die for them. So Rubio, coming in after Iowa, they've got to knock him out. They've got to make him at least not look viable in order to carry on. And so, I mean, there's a gigantic red "X" painted on his back right now. And you've seen it before. You know what was interesting about that debate without Trump in it was you really saw Cruz and Rubio going after each other, too. So, I mean, it's sort of -- I don't want to say the natural dynamic of the Republican field, but a much clearer dynamic than you have with Trump in there.

ROMANS: Let's talk about the Democratic field because you've got Hillary Clinton looking at what happened in Iowa. She won, barely. She squeaked by and she won, but young people, when you look at the entrance polling and the young people preference for Bernie Sanders, they're calling him Sanderella in some of the headlines this morning. And that's what she faces when she goes to New Hampshire. We've got this town hall tonight moderated by Anderson Cooper. What will she do? What does she need to do to appeal to those young people, to show some energy? First, listen to what she said specifically about this part of the electorate. (BEGIN VIDEO CLIP)

CLINTON: I'm going to have some work to do to reach out to young voters, maybe first-time voters who have to make a tough decision as they evaluate who should be our president, our commander in chief, and I intend to do that. Laying out my case, where I contrast on the issues --

(END VIDEO CLIP)

ROMANS: She doesn't go as far as Bernie Sanders on free college, you know. She talks about making sure people can graduate without debt, but she doesn't go as far on some of these issues that are really resonating with young people.

LOBIANCO: It's really -- look at that enthusiasm gap that we've all noticed. When you attend a Sanders rally, at times it's deafening when he walks out there. And Sanders has been giving the same speech for, well, his people like to say at least 30 years, right? Talking about the exact same topics. But when he gets out there, I mean, it's just deafening at times. There's so much energy there. And that's where she needs to really pick up. She needs to find some way to corral some of that. Her events are just entirely different. They know that they've had this problem for a while, trying to break into the younger crowd, tell her story. But it's his policies that he's throwing out there and the energy, the excitement. We're going to have Larry David hosting "Saturday Night Live" again on Saturday, right? So you can only imagine that's even going to do more to help Sanders with the younger voters.

BERMAN: I think it's an in-kind contribution. I think that will help him by a lot. No, seriously. He does a great Bernie Sanders, but it's not ridiculing Bernie Sanders. I think it's celebrating Bernie Sanders. So, I think in some ways, it's great timing for the Sanders campaign. Tom LoBianco. Great to have you with us.

ROMANS: That town hall we're talking about moderated by Anderson is with Clinton and Sanders. They're going to answer questions directly from New Hampshire voters. That's tonight, 9:00 p.m. Eastern right here on CNN.

BERMAN: All right. New concerns this morning about the Zika virus. Signs it can be passed on not just by mosquitoes. Now we're learning also by sex.

(BEGIN COMMERCIAL BREAK)

ROMANS: New concerns this morning about the spread of the Zika virus. Texas health officials are reporting the first known case of Zika virus transmission in the U.S. and they say it was contracted through sex, not a mosquito bite. In response, the CDC is advising people who have traveled to the areas with Zika outbreaks to use condoms. The Red Cross wants donors to hold off giving blood for at least 28 days when they're returning from those places.

A French company is attempting to develop a vaccine to fight the Zika virus and CNN's Nic Robertson is there. He spoke to a scientist who's working on that very virus. He's live for us in Lyon, France. Good morning, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, good morning, Christine. Sanofi Pasteur, they have a lot of experience in the field of vaccines. They produce a vaccine for yellow fever, dengue fever, why is that important, you might ask, in relation to the Zika virus? Well the dengue fever, yellow fever, have similarities to the Zika virus. That means that there are scientists here, that their outreach and footprint around the world is going to be incredibly valuable, they believe, to producing and getting the Zika virus up and running off the ground -- a Zika vaccine, rather, up and running quickly. I spoke to the head of global research. This is what he told me.

(BEGIN VIDEO CLIP)

[05:45:11] DOCTOR NICHOLAS JACKSON, GLOBAL HEAD OF RESEARCH, SANOFI PASTEUR: Well the typical vaccine can take ten or more years. But there is a great sense of urgency with the organization. The WHO has declared an emergency, so we need to move as quickly as possible. So we've got technology in house, we have capabilities and infrastructure that's been established around our dengue vaccine and other viruses, so we really hope to significantly reduce that time line and cut years off the typical amount of time that it takes to develop a vaccine.

ROBERTSON: So we're talking several years rather than perhaps a decade.

JACKSON: That's correct.

(END VIDEO CLIP)

ROBERSTON: But what really worries him is the rapid spread of this virus. He believes that as many as 2.3 billion people around the world could potentially be exposed to the Zika virus in the future because that's how many people are exposed to dengue fever right now. It's carried by the same mosquito. His concern not just about the speed of the spread, but he believes that other mosquitoes, perhaps also could spread the Zika virus in the future, meaning that right now it can reach potentially into Texas, into Florida, but he believes there is a real and dangerous potential that this virus could reach as far north as Washington, as New York, all the way up the Eastern U.S. seaboard. So a real concern, and that's why he says they're working so hard, Christine.

ROMANS: And it's so interesting that we're talking about the mosquito or the types of mosquitoes that could carry this virus. But now we're learning that there's sexual transmission as well. So that just raises the stakes here.

ROBERTSON: It does. He was sort of staggered to learn that. We discussed that this morning. This is something for scientists here, he says they have a lot more to learn, a huge amount more to learn about the Zika virus. What they've got in their sort of range of vaccines that they have already and their technology that they have already -- when they made the vaccine for dengue fever, they were able to take their vaccine for yellow fever and splice the new bits on. And what they hope to be able to do that is essentially the same for Zika virus, splice the new bits on. But before you can splice the new bits on, you need to understand the details of the disease, of the virus. So when he learns today for example, that it can be spread through sexual transmission, that's a concern because that adds a new layer of lack of knowledge, if you will. But again, what they're stressing here, Christine, is that they have all the -- they have a big outreach. The WHO has declared this emergency. All of that means that they can speed the process. But it could still be a few years until the vaccine --

ROMANS: A few years. Hopefully not the ten that it usually takes to make a vaccine. Thanks for that, Nic Robertson for us in Lyon, this morning.

BERMAN: The water crisis in Flint will be front and center on Capitol Hill this morning. The house oversight committee is holding a hearing on the lead contamination hitting tens of thousands of people. Local lawmakers and environmental officials are scheduled to testify. Flint mayor, Karen Weaver is calling for the immediate replacement of all lead service lines running into the city homes. She is not offering cost estimates or a way to fund this project.

ROMANS: Growing concerns in Ferguson, Missouri, over the cost of implementing those reforms ordered by the justice department following the police shooting of Michael Brown. The city already faces a $2.8 million deficit. Officials estimate overhauling the police department will cost at least $500,000. If Ferguson does not comply with the justice department mandate, it risks facing a civil rights suit.

BERMAN: Let's look at what's coming up on "NEW DAY". Michaela Pereira joins us now. Good morning.

MICHAELA PEREIRA, CNN ANCHOR, "NEW DAY": They're all back, Christine. You and I had the studios nice and quiet to ourselves, and it's full- on chaos since Berman, Cuomo, and Camerota return. I'm just saying. Have you noticed that?

ROMANS: I know. Well Camerota is a breath of fresh air, but I don't know, the rest of them. --

PEREIRA: See, look at this. All right. So, we know that now everything is back to normal, the candidates are hitting the ground running in New Hampshire ahead of next week's primary. Alisyn had a chance to speak with Senator Marco Rubio about his strong showing there in Iowa and asked how it's going to impact his strategy in the granite state. We're going to bring you that interview ahead on "NEW DAY". Plus, we're looking at what the Democrats need to say tonight in our CNN town hall, to sway those New Hampshire voters.

Also, as you've been talking about, the Flint water contamination crisis heading to Capitol Hill. We have a Michigan congressman who's trying to fix the problem, joining us with what he plans to tell lawmakers and what he's disappointed will not be happening at today's hearings. We've got a big show today. [-5:49:45] ROMANS: All right, nice to see you. Thanks, Michaela.

See you soon.

All right, that crash in oil prices starting to hit corporate America, folks. And the losses for one big-name oil company staggering. We've got an early start on your money next.

(COMMERCIAL BREAK)

BERMAN: This morning, the United States is looking for new ways to step up the military campaign against ISIS. Recently published satellite images show a small farming airstrip being lengthened in the Kurdish-controlled territory in Northern Syria. The Pentagon only says that forces in Syria, U.S. forces, are consistently looking for ways to increase efficiency.

Clarissa Ward is the first journalist to visit that airfield amid this deepening relationship between the U.S. and its Kurdish ally. She joins us from Erbil in Iraq with this CNN exclusive. Clarissa, what did you see?

[05:54:37] CLARISSA WARD: Good morning, John. Well that's right, as the U.S. is ratcheting up its military presence inside Syria with at least 50 special forces troops on the ground, it is also exploring new ways to take the fight to ISIS beyond just airstrikes. Now, we managed to find that small agricultural airstrip in a remote corner of northern Syria, and it is currently being developed into a military airfield for U.S. forces. We saw workmen and tractors. Apparently they appear to be extending the runway so that that runway could facilitate or host larger planes. Now, when we got there, we were almost immediately stopped from filming by a Kurdish security force who told us that it was a military zone. Inside this area of Kurdish- controlled Syria, it's an open secret that the U.S. is building this airfield, essentially. But the Pentagon has officially been denying that it is taking control of any airfield. Now, why would the U.S. want an airfield in this part of Syria? Well, there are a number of strategic reasons. It could be used to bring in logistics, bring in weapons and ammunition for allies. It could be used to bring in special forces troops and personnel. It could be used as part of an extraction operation if it was need for that. And while it's just 100 miles from ISIS positions, it is also well secured inside Kurdish territory. So essentially this airfield, really giving the U.S. a lot more options on the ground to play with. John --

BERMAN: Very interesting perspective. What a view there and obviously something going on. Clarissa Ward for us in Erbil. Thanks so much.

56 minutes after the hour. North Korea announced plans to launch a rocket into space later this month. This according to a U.N. official. Washington described the launch as an egregious violation of a U.N. ban on missile launches in the country and called for more sanctions. North Korea conducted its fourth nuclear bomb test last month, drawing international condemnation. Critics call Pyongyang's last satellite launch a cover for a test of ballistic missile technology. ROMANS: All right, 57 minutes past the hour. Let's get an EARLY

START on your money.

A rotten day yesterday for stock investors, really bad. A 295-point loss for the Dow. Right now, stock markets in Europe are lower. Stocks in Tokyo, they lost 3 percent overnight. Look at U.S. futures, they're up a tad right now, but it was a really rough day. The crash in oil prices has been just hell on profits for the big oil companies. Profit at Exxon Mobil, the nation's largest oil company, plummeted 58 percent in the fourth quarter. Look at that. The weakest profit showing in maybe decades for this company. $16.2 billion it earned last year, half what it earned the year before. Exxon Mobil is one of three American companies that have a higher credit rating than the federal government. Microsoft and Johnson & Johnson are the other two. Now Standard & Poor's is threatening to kick Exxon out of that group. It'll be watching it very closely over the next 90 days. See how that oil crash could affect the company's credit-worthiness.

But what's bad for oil companies is great for your wallet. The national average for a gallon of regular, $1.78. Below $1.80, down 20 cents in just a month. Down $1 below the peak oil prices that were hit last year, the gas peak, rather. Check out Missouri, Oklahoma. Those are the lowest averages in the country. They're below $1.50. Kansas and Arkansas are not far behind. But that, you know, that crash in oil prices has just been so disruptive for investors. And oil prices -- oil companies are a chunk of the S&P 500, so it hurts your 401(k), when you see those declining oil prices, but it sure helps your family budget.

BERMAN: I was going to say. In Iowa, $1.65, was driving, almost got whiplash when I was on the highway there.

All right. The presidential candidates, the Democrats getting ready for the CNN town hall tonight. The drama builds. "NEW DAY" starts right now.

(BEGIN VIDEOTAPE)

TRUMP: What kind of people do we have running for office? He was born in Canada.

CRUZ: I will continue to sing Donald's praises personally.

SEN. MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: Our approach is better than what Bernie Sanders or Hillary Clinton is offering.

CLINTON: I feel really great being back in New Hampshire after winning in Iowa.

SANDERS: The political revolution continues next Tuesday here in New Hampshire.

RUBIO: I'm running to unify this party and ensure that our next president is nothing like the one we have now.

UNIDENTIFIED FEMALE: At what point did you realize that Iowa was going to go very differently than what the polls had predicted?

UNIDENTIFIED FEMALE: This place doesn't exist, according to the U.S. defense department.

UNIDENTIFIED FEMALE: He's coming now.

UNIDENTIFIED FEMALE: We were escorted away from the airfield as soon as we were spotted.

(END VIDEOTAPE)

ANNOUNCER: This is "NEW DAY" with Chris Cuomo, Alisyn Camerota, and Michaela Pereira.

ALISYN CAMEROTA, CNN ANCHOR: And we're back. Good morning, everyone. Welcome to your NEW DAY. It's Wednesday, February 3, 6:00 in the East. Up first, Ted Cruz and Marco Rubio looking to build on their Iowa momentum in New Hampshire now. Rubio, coming under attack by most of his GOP rivals, hoping to take the wind out of his sails. I sat down with Senator Rubio and talked about how he plans to fight off those attacks. We'll bring you that interview shortly.

CHRIS CUOMO, CNN ANCHOR: New Hampshire cannot come soon enough for Donald Trump. He admits the debate boycott likely cost him the win in Iowa. But he says he would do it all over again to help raise money for vets. This, as Hillary Clinton and Bernie Sanders prepare to answer questions directly from voters in the presidential town hall tonight right here on CNN. We have complete coverage of the next phase of the election. CNN's Sara Murray live in Manchester.