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EARLY START

President Obama Visits Hiroshima; Trump Clinches GOP Nomination; Clinton Doubles-Down On Email Defense; Signal Detected From EgyptAir Flight 804. Aired 5:30-6a ET

Aired May 27, 2016 - 05:30   ET

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


[05:31:00] ANA CABRERA, CNN HOST: Breaking news this morning. Emotional moments in Hiroshima as President Obama there hugging survivors of the atomic bomb blast, delivering a touching speech. We are live.

ALISON KOSIK, CNN HOST: Donald Trump clinching the Republican nomination, celebrating his win with new attacks for Hillary Clinton and promising to debate Bernie Sanders.

CABRERA: Hillary Clinton, meantime, talking to CNN and defending her use of email as Secretary of State on that private server. Why the Democratic front-runner insists she did nothing wrong. Welcome back to EARLY START on this Friday.

KOSIK: Good morning.

CABRERA: Good morning, I'm Ana Cabrera.

KOSIK: Good morning to you, Ana. So happy to be here with you. I'm Alison Kosik. It's 30 minutes past the hour and breaking news. A historic milestone -- President Obama on an emotional visit to Hiroshima, the first sitting United States president to visit the Japanese city more than seven decades after the U.S. dropped an atomic bomb there.

White House correspondent Michelle Kosinski is traveling with the president. She joins us now. As you watched along with us, President Obama giving that historic speech that was also very, very emotional.

MICHELLE KOSINSKI, WHITE HOUSE CORRESPONDENT: Yes, it was. I mean, the majority of people around us right now, members of the press, there are officials -- just a lot of activity. The majority of them are Japanese and you could really see the change come over when President Obama starting speaking.

They were very curious to see how he would handle this, and it was much different from his usual speeches. It's kind of -- when you think about a subject like this you think well, where do you even begin? And the White House, clearly, didn't want this to be political or policy-based and mention the Iran nuclear deal and all of this stuff that we hear about all the time.

But, President Obama wanted to broaden this out further. Quite a bit further, in fact. He spoke about the nature of humanity itself -- listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Technological progress without an equivalent progress in human institutions can doom us. The scientific revolution that led to the splitting of an atom requires a moral revolution, as well. That is why we come to this place.

(END VIDEO CLIP)

KOSINSKI: I think what made this powerful for people to hear to listen to -- because they knew it wasn't going to be an apology. But, President Obama talked about responsibility -- a responsibility that everybody has. And he talked about moving beyond even -- he talked about denuclearization. Of course, he wanted to make that point here, of all places.

But he said that that's not even enough. That humanity should change its mindset on war itself and embrace what he called the radical notion that we're all part of one family, humanity. So, he wanted to get well beyond history and talk about how we approach these things, and it couldn't be a broader subject of how humanity chooses to address conflict moving forward -- Alison.

KOSIK: All right, clearly an historic moment with a profound message there. All right, CNN's Michelle Kosinski, thanks so much.

CABRERA: Let's talk about politics this morning as Donald Trump has hit that magic number of delegates, 1, 237. That gives him enough to win the nomination for him at the GOP convention in July. The Trump campaign across the west yesterday attacking Hillary Clinton.

Also, going after President Obama, and he seemed to brush off the President's remarks about world leaders have been rattled by Trump. Let's listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: That's good if they're nervous. That's good, that's good, right? It's good. Let them be a little bit nervous. By the way, I'll have a better relationship with other countries than he has, except we'll do much better and they won't be taking advantage of us anymore. And they won't be calling us the stupid people anymore.

(END VIDEO CLIP)

[05:35:00] KOSIK: All right, let's break down more of this about how Trump clinched the nomination, how this affects the race, as well as let's get some insight as to how his time living in -- working in Japan. I'm talking about Josh Rogin. He is our political analyst here at CNN and "Washington Post" columnist, as well. Good morning, Josh.

JOSH ROGIN, CNN POLITICAL ANALYST: Good morning. KOSIK: Once again, you lived, you worked in Japan for two years. Watching the president make this historic and emotional visit, what are the political ramifications of this visit, though?

ROGIN: Well, sure. So, although President Obama intentionally kept politics and policies out of the speech today, he didn't keep them out of this trip. And only yesterday he noted that foreign leaders are rattled by some of Trump's remarks. In my own reporting, I've found that to be true.

Of course, Donald Trump turned that into a stump speech talking point, saying that it's good to be rattled. But let me tell you, Japan is the one country in the world that really understands the devastating cost of nuclear weapons when they are used.

They have a national policy and a national identity of never wanting to possess nuclear weapons and they've lived for 70 years underneath the security of U.S. nuclear umbrella. And what Donald Trump proposed in "The New York Times" interview not so long ago was that they should get their own nukes, and that does rattle them and it does change longstanding U.S. policy.

And what I would say is that in business, perhaps, it's good to rattle your opponents and even your allies. In diplomacy, that's just not the case. The Japanese are rattled enough. They have North Korea with a nuclear program. They have an increasingly aggressive China. Same thing in Europe, right? They've got problems.

What they need from the United States, in my view, is reassurance, a measure of stability, and an understanding that no matter who becomes president that these relationships will remain strong. So, when the president points out that Trump is saying things that are unsettling to these leaders, I think he has a point.

CABRERA: And yet, Donald Trump does have the support now of the majority of Republican delegates. We now know he has clinched that nomination outright when he goes to the convention, come July -- 1,237 delegates. He's now at 1,238 by CNN's counting.

And so, I mean, this is official. He is going to be the guy who's going to be going up against either Hillary Clinton or Bernie Sanders, and we'll have to wait and see how that plays out in the general election. But there has been some interesting turn of events in the last 24 hours or so with Donald Trump now saying he's willing to debate Bernie Sanders before the upcoming Democratic primary in California. How big of a deal is that?

ROGIN: Yes, well, I think -- listen, I see why it makes a lot of sense for Bernie Sanders. I don't see why it makes a lot of sense for Donald Trump. I think that's why you see Donald Trump setting a very high bar. He said that we have to raise $10 million to $15 million for charity. That's going to be a heavy lift for anyone.

I think what we'll see is Donald Trump trying to avoid this debate and Bernie Sanders trying to push Donald Trump into this debate. We saw Bernie Sanders campaign manager on CNN actually goading the Trump campaign into fulfilling this pledge. We'll see if it happens.

For Donald Trump, there's only a downside in putting himself next to Bernie Sanders who, by all likelihood, will soon be out of this primary.

CABRERA: And Hillary Clinton, too, wasn't going to debate Bernie Sanders in California.

ROGIN: Right.

CABRERA: But she's still in the race, actually, against Bernie Sanders so is this kind of a nightmare situation for her?

ROGIN: Right. Well, it's not comfortable for Hillary Clinton but it's a short-term problem, right? Bernie Sanders has got to come up with some gambits -- something big -- some Hail Mary passes if he really wants to take a run at really taking this nomination.

When Ted Cruz was on his last legs he threw out a V.P. pick and that only lasted 48 hours. This is what campaigns do in their last throws. Bernie Sanders might as well try, and if he gets that debate, I'll surely watch it.

KOSIK: Yes, and as we see this sort of spectacle play out about this potential debate between Bernie Sanders and Donald Trump, we continue to watch Hillary Clinton being dogged by this email scandal, which to some people seemed even more egregious than Donald Trump not releasing his tax returns.

ROGIN: Right -- I think Hillary Clinton is giving a clinic on how not to do crisis management. I mean, every time another piece of this comes out it's been drip, drip, drip. That's really killing here. She does this thing where she half takes responsibility and half defends herself.

Her basic point here is that she's done the same thing as every other Secretary of State, but that's not true. None of the other Secretaries of State had their own private server in their basement, in their private home in New York. It's unprecedented. It's caused a lot of outrage. Whether or not it's illegal, I don't know. That's up to the FBI to decide.

[05:40:00] But, Hillary Clinton cannot continue to half take responsibility for this. She might as well, at this point, just fully take responsibility for this and try to minimize the damage. I think she gives credence to the narrative that she is evasive and not owning up to her mistakes when she defends herself.

CABRERA: Why do you think Bernie Sanders has chosen not to go after her on this issue? As you mentioned, he's throwing out Hail Mary passes.

ROGIN: Yes, I think it's because Democratic voters are much less amenable to hearing about it than Republican voters. Bernie Sanders know his base. He knows his people. They don't think this is a big issue. It's always been a bigger issue for Republican voters than Democratic voters.

In the general election, though, that matters because Hillary Clinton is trying to get all voters. In the primary most Democrats are more sympathetic to Hillary Clinton's explanation here, so the upside of Bernie Sanders engaging her is just really not there.

KOSIK: You know, one thing I do want to go to is Bernie Sanders on Jimmy Kimmel last night. Let's go to that and we'll talk on the back of it.

ROGIN: Sure.

(BEGIN VIDEO CLIP)

JIMMY KIMMEL, HOST, "JIMMY KIMMEL LIVE!": I have a clip I'd like to play for you just to get your reaction to it. Here we go.

CHRIS CUOMO, CNN HOST: When we get into the general election, if you're the nominee for your party --

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I will be the nominee for my party, Chris. That is already done, in effect. There is no way that I won't be.

KIMMEL: Does that make you mad seeing that?

BERNIE SANDERS (D-VT), PRESIDENTIAL CANDIDATE: Just a pinch of arrogance there, I think.

(END VIDEO CLIP)

KOSIK: Spoken like true Bernie Sanders. That was our Chris Cuomo, by the way, obviously, interviewing Hillary Clinton. You know, you think about her making that statement and then you look at, let's say, California -- a poll of Clinton versus Sanders among likely voters. And yes, it shows that Hillary Clinton has 46 percent there, Sanders 44, but that's pretty darn close. And at this stage of the game you'd expect the margin there to be much wider.

ROGIN: Yes, it's been a terribly tough primary for Hillary Clinton. On the facts, she's basically right. She's very close to clinching this and if it's not in California, then soon thereafter. I think Bernie Sanders has a point, too.

It was kind of arrogant of her to say that, but if you think ahead towards the general election she's not more arrogant than Donald Trump. So, I think if you want to get non-arrogant people into the election you would have a hard time finding them.

CABRERA: All right, Josh Rogin. Our thanks to you for joining us --

ROGIN: Thank you.

CABRERA: -- early on this Friday. Good to see you.

KOSIK: Thanks, Josh. U.S. health officials are warning against a new super bacteria resistant to all antibiotics. What you need to know, next.

[05:42:30]

(COMMERCIAL BREAK)

[05:46:40] KOSIK: Welcome back. Health officials are very concerned about the first patient ever diagnosed in the U.S. with an infection completely resistant to all known antibiotics. The case involves a Pennsylvania woman with a urinary tract infection that cannot be cured, even with the most potent antibiotic known to medicine.

The director for the Centers for Disease Control expressing grave concern, saying we now risk living in a post-antibiotic world.

Donald Trump giving an in-depth speech about energy policy yesterday in oil-rich North Dakota. He says the U.S. should profit from its natural resources -- listen.

(BEGIN VIDEO CLIP)

TRUMP: America's incredible energy potential remains untapped. It's totally self-inflicted. It's a wound, and it's a wound that we have to heal. Under my presidency, we'll accomplish a complete American energy independence -- complete, complete.

(END VIDEO CLIP)

KOSIK: His plan to do it, more drilling, less regulation. Trump would approve the Keystone Pipeline but would take a cut of the profits for the government. He'd lift existing bans on oil and gas production on federal lands.

He also proposes scrapping regulations that are deemed outdated, unnecessary, or bad for workers. And he would work with conservationists, but only if their goal is to protect nature. One thing he did not mention in his speech, climate change.

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

CUOMO: How are you, my friend? You're talking Donald Trump, we'll be talking Donald Trump --

KOSIK: Of course, you will be.

CUOMO: -- and his latest victory lap after clinching the GOP presidential nomination. That magic number, 1,237, no longer a dream. A reality for Mr. Trump. On the other side of the ball, Hillary Clinton -- she, also, is trying to figure out how to close it out against Bernie Sanders while also waging different types of battles with Donald Trump, so she's got that two-front war going on.

And, the latest problem for her is, of course, the inspector general report on her email use. So, we're going to take you through all that, and then this speculation -- Trump-Sanders. Is this debate really going to happen? We'll play through the possibilities there. We're also going to take you live to Hiroshima. That's where

President Obama was for a historic visit. The first U.S. president to visit the site since that 71-year-old atomic bomb dropped there. So, we're going to tell you what the president said there. The kind of tee-up this weekend is really about heading into Decoration Day, or Memorial Day on Monday, Alison.

KOSIK: Exactly -- I hear you on that. A lot going on and we will be watching. Thanks, Chris.

Two of the nation's biggest bank are offering mortgages with just three percent down but, of course, there's a catch. We're going to get an early start on your money next.

Living on Mars sounds like something out of science fiction but it's closer than you think. Some companies are looking at ways to build colonies in space. "CNN MONEY" Vanessa Yurkevich goes inside one of those businesses.

(BEGIN VIDEOTAPE)

VANESSA YURKEVICH, "CNN MONEY" CORRESPONDENT: Space exploration is a $330 billion a year industry. It's expensive and it's dangerous. But it may hold the key to our dwindling resources here on earth.

TORY BRUNO, PRESIDENT & CEO, UNITED LAUNCH ALLIANCE: I have a vision within just a couple of decades where there's going to be over 1,000 people living and working in space.

[05:50:00] YURKEVICH: This is Tory. He runs United Launch Alliance, also known as ULA. For the past decade, ULA has been responsible for 80 percent of U.S. rocket launches. Today, they're planning for the industry's next big challenge, living in space. How? A brand new rocket called Vulcan. It stays in space 20 times longer and has a reusable engine. Cost savings, $60 million.

BRUNO: With that new rocket it's going to be possible to actually build things in space.

YURKEVICH: So that means that we'll, essentially, be able to build communities up there?

BRUNO: Absolutely. They have to have infrastructure, places to live, homes, and this new technology is going to enable that.

YURKEVICH: This community will be called CisLunar 1000. By 2046, ULA estimates the colony will have what it calls a gross space product of $2.7 trillion a year. And a large portion of that revenue will come from mining asteroids.

BRUNO: The great discovery of our time, that I think has gone largely unnoticed, is that water is everywhere. It's going to change everything here. Now, we toil and we struggle here on earth, often due to a shortage of resources. Well, I'm going to change all of that.

(END VIDEOTAPE)

[05:51:35]

(COMMERCIAL BREAK)

[05:55:50] KOSIK: A signal detected from the emergency locator transmitter on board downed flight EgyptAir 804. The search for the plane's black boxes now focusing on a three-square-mile in the Mediterranean.

CNN's Ian Lee joining us live from Cairo now. I just want to be clear here. The ping is coming from a difference device, not from the black boxes.

IAN LEE, CNN REPORTER: That's right, Alison, the emergency locator transmitter. This is a device that is activated either automatically or manually once there is impact. This signal lasts roughly a few hours and not days. It can be detected, though, by satellite. So we do not know when this signal was detected by investigators.

There are three of them on board the plane and we don't know which of three is being detected. And again, this is different from those black boxes. As you know, that sets off a ping that can be detected up to 30 days. Investigators are still looking for that. It has narrowed the search area, though -- this transmitter -- to a radius of three miles.

There is a ship, a French ship, coming in the next few days that has special listening equipment. Right now, though, it is a ticking clock. Time is running out to locate those black boxes.

KOSIK: We hope they find them soon. CNN's Ian Lee, thanks very much.

All right, let's get an early start on your money. Global markets are taking a small step back from the gains earlier in the week. We are seeing Dow futures flat. Markets in Europe began with losses but now have turned higher. Shares in Asia finished the week with gains, and we are seeing oil prices falling.

The post-recession days of needing 20 percent down for a mortgage seem to be over. Wells Fargo is letting borrowers put just three percent down on a mortgage up to $417,000. Applicants have to have a FICO score of at least 620 and they'll still have to pay private mortgage insurance until their equity reaches 20 percent.

But, if customers take a mortgage education class the bank will knock off one-eighth of a percentage from their interest rate. Rival Bank of America began offering a similar loan in February and they're aimed at helping more moderate income homebuyers and first-time homebuyers, as well.

President Obama making an emotional visit to Hiroshima. "NEW DAY" starts now.

UNIDENTIFIED MALE: This is CNN breaking news. ALISYN CAMEROTA, CNN HOST: Good morning, everyone. Welcome to your new day. It is Friday, May 27th, 6:00 in the east. Ana Cabrera is with us this week.

CABRERA: Good morning, it's a Friday, guys.

CAMEROTA: It is. Great to have you here with us this week. OK, we begin with breaking news for you because President Obama making history at a critical time for the U.S. on the world stage, going where no sitting U.S. president has ever gone before.

Obama, now the first U.S. president to set foot in Hiroshima 71 years after the U.S. dropped the world's first atomic bomb there, killing more than 140,000 people during the closing days of World War II.

CUOMO: Would the president apologize? That was a question swirling in the air. The answer is no, but President Obama did make a gesture of reconciliation. What exactly did he say about that devastating blow dealt 71 years ago?

We also have some new twists in the election to tell you about, so let's get to the news. We have this story and the race covered the way only CNN can. We begin with CNN's Michelle Kosinski, live in Japan -- Michelle.

KOSINSKI: Hi, Chris. You can really feel the power of this moment here. The Japanese people have waited for this for a very long time. They knew they weren't going to get an apology but, frankly, the Japanese government hasn't wanted one. They felt that that would stir up too much controversy on either side. That, then, puts responsibility on them for apologizing for parts of this war, as well.

But people waited here in absolute silence. They wanted to hear exactly how President Obama would address this and it ended up being much, much different from his usual speeches on the nuclear race, on events in the world. He didn't get into policy. They didn't want this to be quite the same.

In fact, he broadened this out as broadly as you possibly could. He talked about the nature of humanity, itself -- listen.

(BEGIN VIDEO CLIP)

OBAMA: We have a shared responsibility to look directly into the eye of history and ask what --