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EARLY START

Crucial Indiana Primary Today; Sanders Vows To Stay In Race; Clinton Faces West Virginia Coal Miners; Obama Reveals Challenges For His Successor; Gas Prices Hit 6-Month High; Syria Ceasefire Collapsing. Aired 5:30-6a ET

Aired May 3, 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] MIGUEL MARQUEZ, CNN ANCHOR: In just a short time voting begins in the critical Indiana primary election. Donald Trump declaring the race over if he wins. And, Bernie Sanders escalates attacks on Hillary Clinton. Will tonight become a turning point in the race for president?

Welcome back to EARLY START. I'm Miguel Marquez.

ALISON KOSIK, CNN ANCHOR: And, I'm Alison Kosik. It's 30 minutes past the hour. Good morning.

And in just a short time from now voters head to the polls in Indiana. The front-runners trying to seal the deal in that state's crucial primary.

Donald Trump campaigning in Indiana, predicting a huge victory that would crush the White House hopes of rivals Ted Cruz and John Kasich. CNN's Jim Acosta is with the Trump campaign in Indiana. He has the latest.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Miguel and Alison, Donald Trump is declaring this race for the GOP nomination over if he wins the Indiana primary, joined by some of the state's biggest sports heroes all day long.

Trump hit Ted Cruz hard in South Bend, the home of Notre Dame, teasing the Texas senator for not assisting his running mate, Carly Fiorina, when she stumbled off a campaign stage over the weekend. But Trump said he's ready to turn to Hillary Clinton and the general election campaign. Here's more of what he had to stay.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: If we win it's over and then I can focus -- then I don't have to worry about lyin' Ted Cruz and I don't care if he endorses me or doesn't. I couldn't care less. But, I don't have to worry about lyin' Ted Cruz. We don't have to worry about Kasich who's one and 44.

ACOSTA: A top Trump campaign official tells me they believe a big win in Indiana will force Cruz to start rethinking his future in this race, predicting the money will start drying up for the Texas senator. Cruz is vowing to stay in the race as long as he remains viable. Miguel and Alison --

(END VIDEOTAPE)

MARQUEZ: Jim, the machine, Acosta for us. On the Democratic side, Bernie Sanders hoping for a win today in Indiana, polling a close second to Hillary Clinton. Sanders has been making a case to Hoosier voters, the same case he hopes will persuade Democratic superdelegates to turn around and back him, namely that he will be the strongest candidate in the general election.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: Every single national poll, every single poll in a battleground state like Indiana, you know what those polls show? They show that, by far, Bernie Sanders is the strongest candidate to defeat Donald Trump.

(END VIDEO CLIP)

MARQUEZ: Now, senior Washington correspondent Jeff Zeleny is traveling with the Sanders campaign. He has the latest from Indianapolis.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Miguel and Alison, Bernie Sanders campaigning until the very last minute before this Indiana primary. He is looking for another win. Hillary Clinton has won five out of the last six contests. Bernie Sanders looking to turn around the momentum.

One thing he cannot turn around is the math. Hillary Clinton has a commanding lead in pledged delegates, even more so in superdelegates. But, Bernie Sanders still making the argument that he's going to go forward until the California primary and, perhaps, even until the convention.

Now, he was campaigning across the state of Indiana on the eve of the primary and not holding back on Hillary Clinton at all. Still calling on her to release those paid speeches to Goldman Sachs. Still calling her out for that support for her Iraq war vote, and the crowds were cheering all along the way here.

Now, how this Indiana primary turns out tonight will help decide how much the Clinton campaign is going to have to fight back. They've already been trying to turn their attention to Donald Trump. Turn their attention onto the fall campaign. But, if Bernie Sanders wins here in Indiana this is one problem that the Clinton campaign wants to sprint through the finish line, not limp toward it here.

So, the Clinton campaign's still holding out for, hopefully, a win but Bernie Sanders could well win Indiana and that will at least slow down her march to the nomination. Miguel and Alison --

(END VIDEOTAPE) KOSIK: All right, Jeff, thanks for that. Joining us this morning to dig a little deeper into the primary site in Indiana, Newsday columnist Ellis Henican, co-author of the "The Party's Over: How the Extreme Right Hijacked the GOP and I Became a Democrat". Thanks for coming in so early.

ELLIS HENICAN, NEWSDAY COLUMNIST: Good morning, guys.

KOSIK: All right, so it's all about the delegate count, it's all about the numbers. Our Dana Bash did this great one-on-one interview with Ted Cruz, with Cruz basically saying listen, Trump can't get to 1,237 and I am not going to commit to supporting him. I want to take out a chunk of her interview and play it for you now.

(BEGIN VIDEO CLIP)

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: Will you support his candidacy if he, Donald Trump, gets the delegates before Cleveland?

[05:35:00] SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: Dana, nobody's going to get to 1,237. I'm not going to get to it but neither is Donald Trump.

BASH: What makes you so sure he won't get the delegates? I mean, getting 47 percent of the remaining delegates isn't inconceivable at all.

CRUZ: Well, he hasn't gotten 47 percent to date. That's better than he's done. And I'll tell you --

BASH: But he sure did well last week.

CRUZ: You're right, he did well in his home state and he did well in the adjoining states.

(END VIDEO CLIP)

KOSIK: All right, so we've got polls in Indiana showing Trump taking a double-digit lead ahead of Cruz. Is Cruz right? Is he not going to be able to get to that magical number of delegates?

HENICAN: Well, no, he very may well get to it. One of the true skills of being a presidential candidate today, Alison, is the ability to deny pressing reality, and it's getting harder by the day for Ted Cruz to make that case.

KOSIK: Is there a harsh reality that he has to face at this point?

HENICAN: Numbers, yes, they're very harsh.

KOSIK: He's very --

HENICAN: Very unyielding, those numbers.

MARQUEZ: And the closer we get -- I mean, he won by what, 58 percent in the Acela primaries in the northeast corridor? If he picks up 50- ish -- 45 of the existing delegates today he's looking pretty darn good going into the remainders.

HENICAN: Increasingly, Miguel, the question is it's really in the hands of the Republican leaders, right? How much do they want to risk at the convention? Donald, clearly, has the momentum here. The voters are gathering around him far more than they've gathered around anyone else. And the rules are very slippery.

MARQUEZ: Yes.

HENICAN: They can be changed at the convention very easily, but at what cost?

MARQUEZ: Yes, well, so they say, but at what cost?

HENICAN: At what cost?

MARQUEZ: And that's going to be really tough for them to do. In that interview with Dana Bash you saw the governor of Indiana, Mike Pence, standing next to Ted Cruz. He endorsed him.

HENICAN: That's right.

MARQUEZ: But, Donald Trump has picked up Bobby Knight and Lou Holtz. I take it that two sports figures like that Trumps any governor.

HENICAN: Well, here's the way that I would put it. In Indiana, governor is a higher -- excuse me, coach is a higher office than governor.

KOSIK: Well, it's --

MARQUEZ: Good one on the basketball ring there.

KOSIK: It's certainly something that the voters can relate to more, as well. It makes him a more likeable candidate when you see these --

HENICAN: Beloved. They're beloved figures in that state, yes.

MARQUEZ: They don't get any more massive than that.

HENICAN: And who could be better with it? Who could be more Trumpian than Bobby Knight?

KOSIK: Oh, yes, especially if he picks up a chair and throws it, you know. I'm sensing now not just a change in how Cruz's campaign is moving along but not we're seeing Donald Trump -- he's still calling Ted Cruz lyin' Ted, but now he's really fixating on Hillary Clinton, especially on the way she speaks in public. Listen to this.

(BEGIN VIDEO CLIP)

TRUMP: And I would say that she started screaming at the teleprompter, but I'm not allowed to say that. You know why. Now, if she was a man I could say it but as a woman -- ladies, I'm sorry, I'm not allowed to say it. She was screaming at the teleprompter but I will not say it, OK? (END VIDEO CLIP)

KOSIK: OK, so the attack is now moving from Ted Cruz squarely on Hillary Clinton --

HENICAN: That's right.

KOSIK: -- because that's where he has his sights.

HENICAN: That's right, and like most things with Donald you have to unwind that a little bit. First of all, he kind of has a point, right? I mean, Hillary does not deliver that in a very smooth way and she --

MARQUEZ: She's not a great campaigner.

HENICAN: -- does shout too much when she talks. That part is true. But the wrapping it up in this kind of woman card conspiracy stuff isn't really the best way to make that case.

MARQUEZ: It's very metta. He talks about himself not talking about it as he talks about it. It's ridiculous. I mean, it's like Carly Fiorina fell off the stage. Ted Cruz didn't happen to notice it. Then he comes out and bashes Ted Cruz for not helping her up. And he's saying even I would have done it.

HENICAN: Even I.

MARQUEZ: Even I.

HENICAN: Even a sexist guy like me would have done that.

KOSIK: But it's pretty effective, though. It's funny how he turned that moment --

MARQUEZ: Yes.

KOSIK: -- into a moment on his campaign trail where he got a lot of laughs from his crowd.

HENICAN: Yes -- no, you're absolutely right. I'm reminded -- is it Ginger Rogers who said women have to do everything that men do, but backwards and in high heels?

MARQUEZ: In high heels, exactly.

KOSIK: Right, you try that.

HENICAN: I felt bad for Carly.

MARQUEZ: Turning to the Democrats, Bernie not really letting up on Hillary. He's clearly going to go all the way to the convention. Here's what -- who do we have? We have Hillary on this one?

KOSIK: Yes, let's go to Hillary.

MARQUEZ: We have Hillary talking to coal miners in West Virginia.

HENICAN: West Virginia, right.

MARQUEZ: She goes to West Virginia. She had said earlier on that she was going to close down coal mines and lose a lot of coal jobs there. She goes to West Virginia and has this to say to coal miners.

(BEGIN VIDEO CLIP)

BEAU: I just want to know how you can say you're going to put a lot of coal miners out of jobs and then come in here and tell us how you're going to be our friend because those people out there don't see you as a friend.

[05:40:00] HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I know that, Beau, and you know, I -- I don't know how to explain it other than what I said was totally out of context from what I meant because I have been talking about helping coal country for a very long time and I did put out a plan last summer. And, it was a misstatement.

(END VIDEO CLIP)

MARQUEZ: A smart move by Hillary?

HENICAN: Well, you know, that felt genuine to me. It was an uncomfortable moment, clearly, and I'm sure she would rather not have to answer that or explain it because the explanation is tough. But what are those guys going to do, install solar panels? Is that their new job?

MARQUEZ: That seems to be what she's suggesting.

HENICAN: You know, maybe -- maybe, but you know, I think people -- I like the honesty of it, you know, yes.

KOSIK: Do you think they're going to believe her, though? That's what really matters.

HENICAN: No. West Virginia is getting very -- as you mentioned earlier, Miguel, West Virginia is getting very tough for Democrats. Highly unlikely a Democrat is going to win West Virginia in November.

KOSIK: All right, so --

HENICAN: Maybe Kentucky could be hard, too.

KOSIK: So, your prediction? If Trump wins, let say, 50 delegates out of Indiana, what's going to happen with Cruz? Is he going to bow out? Is he going to move on?

HENICAN: I don't know why he needs to stop. I mean, I think it becomes clear that he's not going to be the nominee but the advantages of continuing seem better to me than the advantages of quitting.

MARQUEZ: He'll continue, Sanders will continue. Clearly they're not -- HENICAN: Absolutely. Kasich, too, probably.

MARQUEZ: -- going anywhere.

HENICAN: Why leave?

MARQUEZ: But, we will have mathematical clarity by the end of today, I think.

HENICAN: Yes, and again, into the hands of the leaders of the party who have to decide how much are you willing to pay --

MARQUEZ: Right.

HENICAN: -- to deny Donald the nomination, and the cost gets higher every week.

MARQUEZ: And Dana Bash already reporting that a lot of those big donors are starting to pull their money back, or --

HENICAN: And even the Cruz aides are looking a little sad this morning.

KOSIK: Exactly. All right, Ellis Henican, thanks so much for getting up early with us.

HENICAN: Hey, great to see you guys. Yes, a fun day.

MARQUEZ: Thank you very much.

KOSIK: All right, a CNN exclusive. President Obama revealing the biggest challenge a successor will face in the war on terror, next.

(COMMERCIAL BREAK)

[05:46:00] MARQUEZ: President Obama revealing some of the challenges ahead for his successor in the war on terror. In a CNN exclusive the president tells our Peter Bergen the next commander in chief will, most likely, turn to the Special Forces and intelligence gathering model his administration used in the raid against Osama Bin Laden. The president also identifying one area his successor should be worried about.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Because of the power of social media there is a mechanism to recruit volunteers that are already located in the west that are much more difficult, precisely because they don't engage in the same kind of planning.

And, what that means is is that we've got to continue to be vigilant. It means that we've got to go after after ISIL in its core where it allows itself to maintain the illusion that somehow it's on the march. It's going to be important for us, ultimately, to take them out of Mosul, take them out of Barakat. Make sure that they don't have those kinds of safe havens where they can pretend that they're a state, in some fashion.

(END VIDEO CLIP)

MARQUEZ: Now, the AC360, "WE GOT HIM: OBAMA, BIN LADEN AND THE WAR ON TERROR". The president said large-scale military operations, like sending troops to Afghanistan and then Iraq as some current candidates are suggesting, would, in his words, only make the fight against extremism harder.

KOSIK: President Obama will visit Flint on Wednesday and Michigan Gov. Rick Snyder will not only be there to greet him when he lands, he's also asking for a private meeting, insisting he wants to work together with the White House to solve Flint's water contamination crisis and improve the quality of life there. But the White House, at this point, not saying whether the president will make time for the governor.

MARQUEZ: Well, bad news for Detroit. Public schools there could be closed again today. The teachers' union urging all of its members to call out sick for a second straight day. The district has already warned the union it won't be able to meet payroll past June. Union leaders calling on state lawmakers to pass a $715 million bailout plan to keep teacher paychecks flowing through the summer.

KOSIK: Time for an EARLY START on your money. We're seeing stock futures in the red as investors look like they're taking a breather after those solid gains from yesterday. Oil prices have turned lower. European stocks are losing ground. Asia finished with losses overnight.

And gas prices are at their highest level in six months. AAA says the national average for a gallon of regular is now at $2.22. That's up eight cents in the past week and 16 cents over the past month. Still, it's well below prices this time last year.

So, why are prices rising? Well, crude oil is the main driver behind those gas prices. It's actually rebounded after crashing earlier in the year. Plus, that summer blend of gasoline that stations use is a little more expensive, and it's coming into play right now.

High demand is factoring in. The low cost is encouraging drivers to take more road trips. Analysts say prices could tick higher over the summer but likely won't experience a prolonged run-up.

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

MARQUEZ: Christopher.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": Hello attractive people. How are you this morning? This is a big day, by any estimate. Front-runners looking to seal the deal in the Republican and Democratic races. Is this the last best chance for Ted Cruz to stop Donald Trump? The answer is yes. Trump predicts a Cruz-crushing victory, meaning he's going to win in a way that would crush the hopes of Sen. Ted Cruz. What's going on on the Democratic side? Much closer. Many more permutations -- outcomes that could happen. But, no question that Indiana is important. And, once again, it is neck-and-neck. Bernie Sanders believes not only can he win in Indiana but he believes he can win over superdelegates.

[05:50:00] So very different dynamics in these two races. We have both sides covered from every angle. A real all-star panel for you this morning. And Miguel, of course I was referring to you. Very, very handsome man.

MARQUEZ: Thank you very much. I really appreciate it.

CUOMO: You do that to me, my cheek falls off. I'm so old.

KOSIK: Hardly. All right, thanks Chris. Stocks jumped on the first trading day in May. Will investors, though, make it two in a row? We're going to get an early start on your money next.

MARQUEZ: Oh, we love an early start.

(COMMERCIAL BREAK)

[05:55:00] MARQUEZ: With a 9-week old ceasefire in Syria all but falling apart, the United States and Russia say they are trying to restore the peace and bring an end to hostilities in Aleppo. Secretary of State John Kerry meeting in Geneva with Syria's special envoy to the U.N. before making a lengthy phone call to Russia's foreign minister overnight.

Let's go to Moscow and bring in CNN senior international correspondent Matthew Chance. Matthew, I take it without both the U.S. and the Russians getting very, very involved in the Russians backing off of their support for the regime, there's not going to be any peace anytime soon.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, and peace, very much, lies in the hands of the Russians to a very large extent because they're the ones that are battling the Syrian Regime of Bashar al-Assad.

They're giving that organization -- that government, rather, the kind of military strength they're pushing on or pulling on to carry out these advances, particularly around the city of Aleppo where hundreds of people have been killed in the past nine of 10 days or so.

And that's where the focus of the diplomacy is now is to try and put an end to the terrible violence in and around that city. A few days a pediatric hospital was bombed, apparently by Syrian government forces. Up to 50 people killed there. There have been lots of other people killed in the fighting, as well, as the Syrian government, backed by the Russians pound Rebel areas in which, of course, there are lots of civilians as well.

And so that's the emphasis at the moment, trying to bring an end to that particular little bit of fighting in Syria. The emphasis has shifted now to Moscow, as you mentioned, where I am, the Russian capital. The U.N. special envoy to Syria, Staffan de Mistura, is in town.

He's now meeting with Sergey Lavrov, the Russian foreign minister to see if any pressure can be brought on the Russians to try pressure the Syrians to hold back -- to pull back on that fighting. There's going to be a press conference in about an hour from now, so hopefully we'll get some clarity on what could be done.

MARQUEZ: We hope for good news from there and from you later in the day. Matthew Chance, for us. Thank you very much.

KOSIK: Let's get an EARLY START on your money. We're seeing stock futures pointing to losses this morning. The market posted solid gains yesterday, though. We're seeing oil prices trading lower in Europe. Stock markets are down and shares in Asia fell overnight.

Guess what the best investment of the year could be? It could be gold. The precious metal up 22 percent in 2016. It actually crossed $1,300 an ounce for the first time in more than a year. This happened yesterday. That performance is much better than the stock market, bonds, or most other commodities.

The initial rise came as investors dumped stocks and bought gold as a safer investment. The latest rally is because of the falling dollar. A weak dollar is good for gold because it makes the metal less expensive for foreign buyers, making it a good long-term value.

Some interesting developments at the top of the music charts. Beyonce's album, "Lemonade", grabbing the top spot last week selling 653,000 copies. And the rest of the top five, it's mostly Prince. His greatest hits album, "The Very Best of Prince' checks in at number two, followed by the "Purple Rain" soundtrack and "The Hits/B-sides" as well. Rihanna sitting at number five.

Despite the popularity of streaming it really does go to show that fans are still willing to buy albums. Beyonce's album debuted with an HBO special and only streams on Tidal, which is owned by her husband Jay-Z. Tidal also has a lock on streaming Prince's music as he signed an exclusive deal with the service.

MARQUEZ: I'm going to sign an exclusive deal.

KOSIK: I want to hear you sing.

MARQUEZ: I'm on it. Good to see you today.

KOSIK: Good to see you, as well.

MARQUEZ: A critical primary election begins in Indiana. "NEW DAY" starts now.

(BEGIN VIDEO CLIP)

TRUMP: You know, if we win it's over.

CRUZ: Nobody's going to get to 1,237.

TRUMP: I got this guy Cruz, lyin' Ted. I think he's crazy.

CRUZ: You don't just get to slap an R on your jersey and lead the Republican Party.

TRUMP: She fell off the stage and Cruz didn't do anything. Even I would have helped her, OK?

CLINTON: I'm going to tell you what I'm going to do so you can hold me accountable.

SANDERS: Our ideas are the future of America.

CLINTON: We're going to give it all we've got, 100 percent effort.

SANDERS: It will be a tragedy for this country if we end up with a Republican in the White House.

OBAMA: We're going to have small groups, lone actors, who find this averted ideology appealing. We have to be prepared for that. Words like this can't defeat us.

(END VIDEO CLIP)

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

ALISYN CAMEROTA, CNN ANCHOR: Good morning, everyone. Welcome to your NEW DAY. It is Tuesday, May 3rd, 6:00 in the east. Up first, the moment of truth is here for Sen. Ted Cruz in Indiana, as voters in the Hoosier State head to the polls this morning.

Today could be the senator's last chance to stop Donald Trump, so how will the GOP race change after Indiana? We'll ask Trump's campaign manager, Corey Lewandowski, when he joins us live next hour.

CUOMO: On the Democratic side, a very different dynamic. The race is closer, overall, and certainly in Indiana. Senator Sanders is looking for an upset tonight to reverse his momentum.