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Manhunt Underway for Cop Killers in Illinois; Dow Plunges 470 Points Amid Renewed Fears; Rules for GOP Debate Updated; Bush Launches New Attack on Trump; Awaiting New CNN Interview with Donald Trump; U.S. Losing Cyber War?; Stunning New Insight on the Leader of ISIS. Aired 5-6p ET

Aired September 1, 2015 - 17:00   ET


[17:00:07] UNIDENTIFIED MALE: Detectives can you come back to the podium, please?

BRIANNA KEILAR, CNN ANCHOR: Happening now, a massive manhunt. An all-out search for suspects in the killing of a police officer found stripped of his weapon and equipment. Helicopters, K-9 units and SWAT teams are called in; schools and some businesses put on lockdown.

Fighting back. Jeb Bush takes off the gloves and slams Donald Trump as a liberal. And the twist: He's using Trump's own words against him. We're standing by for a new CNN interview with Trump. He is sure to react.

Spies wide open. Officials say China and Russia are using stolen data from government records and even an adultery website to unmask and try to compromise American agents. Is the U.S. fighting a losing battle against cyber-attacks?

An ISIS leader exposed. Stunning new information on the brutal and sadistic killer who was once a shy young soccer player and later a trusted U.S. prisoner. What's his main weakness?

Wolf Blitzer is off today. I'm Brianna Keilar. You're in THE SITUATION ROOM.

ANNOUNCER: This is CNN breaking news.

KEILAR: Breaking news, a massive manhunt is underway after a police officer is shot dead north of Chicago. The officer radioed that he was pursuing three suspects. But when backup units arrived, they found him fatally wounded, reportedly stripped of his weapon and equipment.

Helicopters, K-9 units, foot patrols are all searching near the Illinois/Wisconsin border right now, and schools have been put on lockdown. Residents have been asked to remain inside homes and businesses.

And Wall Street took another deep dive today on more evidence of a slowdown in China's economy. The Dow ended down nearly 470 points. That's close to 3 percent. And the S&P 500 and the NASDAQ were also down about 3 percent.

Another source of worry for traders is crude oil. It fell more than 8 percent today.

Our correspondents, analysts and guests are standing by with full coverage of the day's top stories, and we begin with the manhunt after the killing of a police officer.

I want to go straight now to Fox Lake, Illinois. That's where we find CNN national correspondent Ryan Young -- Ryan.

RYAN YOUNG, CNN NATIONAL CORRESPONDENT: Brianna, an active scene here. Of course, the active search for the two suspects who were left out there. If you look behind me, you can see some of the active scene where officers have been around all day long, still trying to find these suspects on the loose. There's a SWAT Unit that just came back to the staging area where we're standing.

The mayor just said the officer's name, Lieutenant Joseph Gliniewicz, who was with their police department for some 32 years. The mayor talked about him being a deep friend. So you can understand and feel the pain in his voice that was involved with this. He was very upset about the idea that this officer was killed.

To remind you there are some suspects that are still out there. The description was two white males, one black male. The description has not gotten any better throughout the day. We were hoping for some more information to share with people.

We did learn this officer, a 32-year vet, is a father. You can only imagine what the officers in his police department are going through, because obviously, they're searching for someone who may have killed their friend. And obviously, they're upset, as all these officers from around the state have now descended on this area. We have the ATF. We have the FBI. We have officers moving through the neighborhoods. Now we're here because, obviously, this is a staging area. We're not giving away any of the positions of where the officers are as they go looking for the suspects.

They did clear the airspace here, so all the news helicopters have been moved out of the area. In just about the last hour, we haven't even seen any of the police helicopters around the area.

But we do know in the city, about 10,000 people, this is a heavily wooded neighborhood where they are searching. And that's something that we actually witnessed this ourselves. We were on a bridge line where we saw them looking over train trestles and making sure that was locked down. K-9 units have been going through the area, and people have been going door to door.

What they're hoping is residents out there, who see something strange or maybe even see somebody running through the back, give them a call so they can catch these suspects.

But as you look behind me, still a very active scene as the officers try to zero in on someone who shot a friend of theirs, a 32-year vet. An officer of this community.

KEILAR: All right. Ryan Young there, Fox Lake, Illinois, stand by for us, as we continue to cover this story.

And just a reminder to our viewers, because we just heard in that news conference, authorities there clearing up any confusion, saying that there is actually no one in custody. They're still looking for three suspects who are at large.

I want to get now a closer look at where all of this drama is playing out. CNN's Tom Foreman is here to explain it to us -- Tom.

TOM FOREMAN, CNN CORRESPONDENT: You mentioned a short while ago, Brianna, it was up here on the Illinois/Wisconsin border. So when you're looking at this area up here, what you're talking about is an area that is about an hour and a half drive from Chicago, if you go out that way.

[17:05:11] And it is a place where many people go on vacation. So yes, it's about 10,000 people in the general community. In summertime it can be about 20,000 people.

This is the targeted area here, where it all happened. You can see a lot of neighborhoods out in here, school over in this area, that sort of thing. But let's go a little bit closer and talk about the details of it.

When this started, they clearly were focused on this. This is the road that the officer was on when he first radioed in that he had some kind of an issue that he was checking on things. So obviously, they went to that site and started looking out there, when he did not -- when they had later reports of problems here.

This is the swampy marshy area that they're talking about, where they've had helicopters throughout the day, as we just heard, maybe not now, trying to see if anyone's still in there. And obviously, the goal was to contain everyone in this area.

But down here, this is where his body is found, somewhere right in here, at this intersection, around here, and of course there's a huge, huge, huge presence of officers there.

The issue, of course, is containment at a time like this. If they could keep these suspects within that box, that seemed to be what they were trying to do to begin with, but now what we see, really, is an effort where it has moved beyond trying to keep them in one box. They spread out into the neighborhoods looking in a lot of places. And of course, as each hour goes by, the further they can travel, the more they may be able to split up, and the hunt just gets more and more complicated -- Brianna.

KEILAR: Sure does. Tom Foreman, thanks for explaining that to us.

I want to bring in Matthew Horace now. He's a former ATF executive. He's now the senior vice president at FJC Security Services. And also, CNN law enforcement analyst Tom Fuentes, who is with us. Matthew, you heard what Tom just reported, that this search area is

expanding. When you see that, what is your first impression of the challenges officers are facing?

MATTHEW HORACE, SVP, FJC SECURITY SERVICES: Well, what first comes to mind is, as we get closer to nightfall, it's going to become more difficult to identify and locate these suspects.

Also, the search will continue throughout tonight, if necessary, and as it continues, the search area will grow larger and larger. And let's remember, we also have homes in that area. It's much different from the last case like this that when we investigated. There are homes as populated. We would hope that one of these people doesn't get into someone's home, commandeer it, take someone hostage. They are very, very dangerous people, and we need to get them in custody quickly.

KEILAR: How challenging, Tom, is it to search these swamp and wooded areas, or is it easier because it does seem to be confined by the road and other homes?

FUENTES: No, it's extremely difficult, Brianna, and it's not really confined. And the other problem is that, from the time this incident happened, about 8 a.m. Chicago time, you know, we don't know how long it took them to get all those officers in place to establish that perimeter.

And just as we saw in the New York fugitive case, it's very difficult to establish a perimeter in a rural area like that. It's wooded. It has many lakes. This particular area has a lot of boating, as well, area called Chain of Lakes, where you can get on the boat on one lake and end up, you know, a long distance away. So they have to not only worry about an escape by vehicle, but the fact that they could hijack a boat and escape on water, that they could go through the woods. There's just a number of means.

And like New York, you have a lot of homes that aren't occupied during the week. There are weekend homes that people go to, to camp and fish; and so they could seek refuge in someone's home, whether they're occupying that home or not.

KEILAR: And Matthew, another point of escape could be this computer rail line, the METRA, that goes through this area. Service has been disrupted, but surely there was a window of time where, if the men knew the area, they may have been able to use it to escape, right?

HORACE: Well, these suspects were to be considered armed and dangerous and desperate. So at the time that they were making their mistake, anything and everything is up on the table for them to elude police and elude capture.

KEILAR: How dangerous, Tom, knowing that, that they're desperate, that they are armed and dangerous, they've killed a police officer, how dangerous is this search for law enforcement?

HORACE: Well, it's dangerous for everybody, law enforcement and the public at large. They have nothing to lose. They've killed a police officer. They may be aware of that by this time. If they have smart phones and were picking up news releases as they went out, they would be well aware of the fact that they're being hunted for killing a police officer. And, you know, what do they have to lose to keep killing to stay out there?

So they're very dangerous. You could not have a more dangerous situation. It's believed they have the officer's gun, as well, even if they didn't have a gun of their own to start with. So they are armed. They are dangerous. They are desperate and, if cornered, they'll kill again.

KEILAR: Tom Fuentes, Matt Horace, stand by for us, because we will be coming back to this story, throughout our time on THE SITUATION ROOM.

[17:10:05] I do want to talk about other breaking news, though, and that's the news on Wall Street where, really, they're picking up the pieces after yet another chaotic selloff. This time the Dow Industrials closed down 470 points. The S&P 500, the NASDAQ, they closed sharply lower, as well.

CNN business correspondent Richard Quest has more on the reasons why. Richard, what can you tell us?

RICHARD QUEST, CNN BUSINESS CORRESPONDENT: What a dreadful day on the market. Brianna, look at the numbers. You see the Dow opened off 300 points and never recovered. Half an hour towards the close, it was down 500 points.

A marginal rally towards the end, and we're off 469 points.

For those who want to know, from the high of May the 16th, it's now a loss of about 12.3 percent. So yes, firmly into correction territory.

But it was broad-based. Look at it. These are the Asian markets. They were all down. The European markets were all down. The U.S. markets were down, and the reason remains the same. Worries over what's happening in China with the Chinese economy and its slow-down, worries over commodity prices like oil. And when is the Fed going to raise rates.

This is the way the U.S. market has traded over the last month. We thought that smidgeon of recovery was going to do some good, but it didn't in the end.

Finally, Brianna, look at the Dow. Every stock was down, and I'm going to draw your attention particularly. The worst affected down here, Apple. And Apple is normally one of those that is best -- the best performers even on a down day.

KEILAR: All right. Richard Quest, thank you so much for that report. We do appreciate it.

Next up, Jeb Bush is taking off the gloves. He goes after Donald Trump. He's using Trump's own words against him in a new video. We're standing by for a new CNN interview with Trump. (COMMERCIAL BREAK)

KEILAR: We have some breaking news about the upcoming Republican debate here on CNN, and you really want to listen up, because the debate rules have just been updated. And I want to bring in CNN politics executive editor Mark Preston to explain this.

[17:15:59] So how have -- what are the changes?

MARK PRESTON, CNN POLITICS EXECUTIVE EDITOR: Well, Brianna, you know, we've done a lot of thinking about the current state of the race right now and the data that we're using to decide on inclusion for the top- tier debate that's going to take place on September 16 at the Reagan Presidential Library.

After much thought and looking at the data that is currently presented to us, we decided to amend the criteria a little bit. So let me just lay this out there. There are a lot of numbers. But to put it very simply right now, we are only looking at three national polls currently, compared to nine polls that have been added into the criteria from the beginning.

So somebody who could be doing well in August or certainly into September would not, you know, be able to benefit from that. So what we've done is we've decided that if you are in the top ten of polls recognized by CNN, from August 7 until September 10, but yet you were not captured in the original eligibility window from July 16 to September 10, then you would be included in the debate.

KEILAR: So this is an amendment, and basically, it seems like the idea is that the data -- normally, you would have a lot more polls in this period of time around Labor Day. And there just haven't been those polls, so it seems like the data in this post-debate period isn't really capturing the real picture of the current race, right? And it seems like right now, looking at this amendment it might be Carly Fiorina who would see the impact here.

PRESTON: Let's get a little historical perspective. If you go back to this time in 2011, which would be the year right before the presidential race, we had 15 polls that were released between the first of August and mid-September, which is basically our eligibility window.

If you look -- go back to 2007, the year before the presidential race, with 16 polls, right now, we're only looking at three, and certainly, when we created the criteria back in May, that's what we were doing on a historical perspective.

Now, if the eligibility window were to close tonight, Carly Fiorina would be included. But I do have to emphasize, at this point, we don't know the final podium positions, because this window is going to stay open until September 10. And we could see people rise; we could see people fall. But really, you could see, potentially, more than 10 people on stage.

KEILAR: A key point, though: if you're looking at someone who may be on sort of the bubble right now, under the unamended criteria, they would be in that top ten. But maybe they wouldn't under the new criteria. They don't get subjected, right? If there's a Chris Christie or, say, a Rand Paul right now, that's what it would look like, they'd be on the bubble. It's not like they would not be on the stage, right?

PRESTON: Again, if they get the window...

KEILAR: If it were closed today.

PRESTON: If the window were closed today, you're absolutely correct. However, there certainly are going to be more polls that are going to be released into September 10.

Now, I do have to note part of our thinking in all this, though, is that from our talking to other news organizations and to other polling outfits, is we didn't think that they were going to be enough polls that would give us a clear data point to really make a sound editorial decision. So that's why we did so.

[17:20:03] So yes, I mean, really emphasize, we don't know who's going to be onstage. We won't know that until the 10th. But the candidates are still going to have to campaign very hard up to then.

KEILAR: The idea being that it should reflect the current picture of the race.

PRESTON: And not be punitive to those who have performed well through the summer up through to this debate.

KEILAR: All right, Mark Preston, thank you so much for explaining that. We really appreciate it.

We are following several new developments now as the 2016 presidential campaign grows nastier and more personal. Jeb Bush just launched his sharpest attack so far on Donald Trump. It's a new video that features Trump's own words. And CNN political reporter Sara Murray has been following all of this and is here to give us a look -- Sara.

SARA MURRAY, CNN POLITICAL CORRESPONDENT: Yes, the battle between Donald Trump and Jeb Bush is growing even more heated today, with the candidates taking to social media to do some good old-fashioned mudslinging.



MURRAY (voice-over): Floundering in the polls, Jeb Bush firing off his harshest attack so far, using Donald Trump's own words against him in this YouTube video.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: My views are a little bit different than if I lived in Iowa.

TIM RUSSERT, FORMER HOST, "MEET THE PRESS": Partial birth abortion. TRUMP: I'm very pro-choice.

MURRAY: And targeting Trump on the campaign trail.

BUSH: You look at his record of what he believes, he supports Democrats. This is not a guy who's a conservative, and using his own words is not a mischaracterization. They came out of his own mouth.

MURRAY: So much for the low energy candidate.

TRUMP: Jeb Bush is a low-energy person. For him to get things done is hard. He's very low-energy.

MURRAY: Bush trying to show he has a sharp edge, retaliating against Trump for an onslaught of attacks via Instagram, the latest showing Bush complimenting Democratic front-runner Hillary Clinton.

BUSH: We recognize the commitment of someone who has devoted her life to public service. I want to say thank you to both Secretary Clinton and to President Clinton.

MURRAY: Trump also hitting his opponent on Twitter today, calling the latest shot from Bush yet another weak hit by a candidate with a failing campaign: "Will Jeb sink as low in the polls as others who have gone after me?"

The escalating public battle between Trump and Bush all as Dr. Ben Carson quietly surges. The retired neurosurgeon suddenly tied with Trump in Iowa, rallying the state's evangelical voters.

DR. BEN CARSON (R), PRESIDENTIAL CANDIDATE: We have to stop listening to these people who tell us that we cannot talk about God, we cannot talk about our faith.

MURRAY: Carson's rise costing Wisconsin Governor Scott Walker, whose support is collapsing in Iowa, a key state for his path to victory. Walker spending his day clarifying whether the U.S. should build a wall along the border with Canada after facing ridicule for saying it was a legitimate idea.

GOV. SCOTT WALKER (R-WI), PRESIDENTIAL CANDIDATE: I've never talked about a wall to the north. I'm certainly not now.


MURRAY: Now amid all of this Republican infighting today, we're seeing something else. Signs of outreach to Hispanic voters. Some of Bush's toughest attacks against Trump today were in Spanish. And for Trump, he may be looking to repair his standing with Hispanics, too. Today he met privately with the CEO of the Hispanic Chamber of Commerce.

KEILAR: All right. Sara Murray, thanks for that report. We are awaiting a new CNN interview with Donald Trump, I should tell you. Right now, I want to bring in Eric Fehrnstrom. He was a senior adviser to Mitt Romney's presidential campaign. And first, Eric, I think you heard the announcement there about amending the debate rules here. So that really what happens is, the pre-debate polls don't outweigh the post-debate polls that we've seen so few of at this point. This could possibly open the door up to Carly Fiorina being on the next debate stage. What do you think about that?

ERIC FEHRNSTROM, FORMER SENIOR ADVISOR TO MITT ROMNEY'S PRESIDENTIAL CAMPAIGN: Well, I think it's a good decision by CNN to be flexible in those rules, because the way they had constructed them weeks or months ago would have excluded, potentially, Carly Fiorina from the debate stage. And I think everybody agrees that she turned in a pretty good performance in that first debate last month and that she deserves to be on the stage with top-tier candidates.

KEILAR: I do want to get your reaction to this fight that we're seeing going on right now, this back and forth between Jeb Bush and Donald Trump. Do you think that this kind of counterattack from Jeb Bush is going to resonate with voters?

FEHRNSTROM: Well, this Trump/Bush feud started as a war of words. Now it's escalated to online video, and I think we all know where this is going to end up. And that's on TV and living rooms in Iowa and New Hampshire.

Look, I think it's a positive development for Jeb Bush. Right now in the national polling, Trump is getting around 30 percent of the vote, which means that 70 percent of the Republican electorate is looking for someone else. There's going to be an anti-Trump candidate that emerges from the field, and I think Bush wants to be that person, obviously.

And for the story to be framed as Trump versus Bush, as opposed to Trump versus the rest of the field, is good for Jeb Bush. Ultimately, this race is going to come down to voters deciding whether they want an experienced candidate like Jeb Bush who has a record as a governor of a big state, or if they want an outsider like Donald Trump, who takes pride in his shoot-from-the-hip style.

[17:25:22] KEILAR: Well, if they do want an experienced candidate, on that note, I'm sure that you've seen this "National Review" report. It says some major Republican donors are underwhelmed by the field so far, including Jeb Bush, and that they're holding out for your former boss, Mitt Romney. Do you think those donors could change his mind, get him into the race?

FEHRNSTROM: No. Mitt Romney has made his decision. He is not reconsidering it. He is friendly with many of the Republican candidates who are running. He feels there's a good sizable crowd of candidates for Republican voters to choose from.

And you know, Brianna, last week, he tweeted out a photo of himself on the beach with one of his grandchildren. And he said something to the effect that these are the important things in life that need to be treasured. So he's very content watching from the sidelines in the company of his family. KEILAR: OK. But before he last -- I just have to press you on this a

little bit, because he last said that he wasn't going to run in 2016 after some consideration. But between his last run and that moment of consideration, I remember he was asked, "Are you thinking of running again?"

He said something like, "No, no, no, no, no, no, no, no, no." And then he went ahead and considered it. Are you sure we can take it to the bank that he will not consider getting in again?

FEHRNSTROM: Yes, of course, there was a period of time at the beginning of this year where he was being encouraged by his supporters to take another look at the race. And he went through that exercise, and ultimately, he decided that it was time to pass the torch to another generation of Republican leaders, and that's exactly what he did. And he has no plans to revisit that decision.

KEILAR: All right. You can't blame him. A little beach time with family sure is nice. Eric Fehrnstrom, thanks so much for joining us in THE SITUATION ROOM.

FEHRNSTROM: Thank you.

KEILAR: Coming up, CNN's Don Lemon just spoke with Donald Trump. He got more reaction to Jeb Bush's latest attack, and we'll have that in just a little bit.

We're also following some new revelations about what the Chinese and Russians may be doing with stolen information from computer break-ins. Are they unmasking U.S. spies?


KEILAR: We're awaiting a new CNN interview with Donald Trump that you no doubt will want to see. He's already dismissing Jeb Bush's new attack video as a weak hit from what Trump calls a failing campaign.

[17:32:25] I want to bring back CNN political correspondent Sara Murray, along with our chief political analyst, Gloria Borger; our chief political correspondent, Dana Bash; and CNN politics senior digital correspondent Chris Moody.

OK. So let's take a look first, Gloria, and then we'll talk about this on the other side, about this response from Jeb Bush, this attack video.


WOLF BLITZER, CNN ANCHOR: Do you identify more as a Democrat or a Republican?

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Well, you'd be shocked if I said that, in many cases, I probably identify more as a Democrat.

BLITZER: Why are you a Republican?

TRUMP: I have no idea.

I lived in New York City in Manhattan all my life, so, you know, my views are a little bit different than if I lived in Iowa.


KEILAR: All right, so Jeb Bush, now...


KEILAR: ... he's fighting back, right, with Donald Trump's own words.


KEILAR: Is it too late? Is it enough?

BORGER: You know, I actually think Jeb Bush should have done it earlier.


BORGER: I think folks didn't know what to make about Donald Trump. They just were kind of hoping he would go away of his own volition, and of course, that didn't occur.

And what Jeb Bush is trying to do now is to attack him from the right. That way he can bolster his own conservative credentials by showing that Trump is not as conservative as you might think.

But the polls show that a majority of conservatives like Donald Trump -- and by the way, liberals also like Donald Trump, so what it might be about is less ideology and more the fact that he's an outsider who they believe speaks the truth.

KEILAR: Well, sure. To that point, Dana, are supporters, are people drawn to Donald Trump even going to care? Are they even going to be responsive?

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: That is really the key question that we don't know the answer to yet. Actually, it's a question that I asked some of the Jeb Bush people today in the campaign, saying, what makes you think that this is actually going to resonate, because other candidates have tried this. Other candidates have tried to telegraph to conservative voters, "He's not really one of you. He's -- you know, it's all a facade. It's not real." And it hasn't worked; it's fallen flat.

I think that what the Bush people are hoping is that, with the money that he has, with the power that he has, with the attention that he can get, because he is Jeb Bush, maybe he can make a difference. And I'm told by the Bush campaign that they're going to keep doing this and keep doing it in a big way.

KEILAR: Sara, you've been reporting today about some of Donald Trump's funding. Let me read this tweet that he put out today. It says, "While millions are being spent against me in attack ads, they are paid for by the bosses and owners of candidates. I am self- funding."

But you have him boasting, though. This is sort of the issue here, right? He's boasting that he's using his own money to make these ads, but then isn't he also in danger of having hacks make ads supporting him and then it gets kind of sticky?

MURRAY: Yes. We're now sort of in the same boat with everyone. Everyone now has a super PAC supporting them, Donald Trump included. He's appeared at events where his super PAC is collecting checks from people.

But I think the interesting thing is you're seeing them lob these attacks at one another on Instagram, on YouTube. No one is putting any real money behind these ads, and that's the big question. If we see the Jeb Bush super PAC show up, and say, we're putting $5 million behind this anti-Trump ad. Then you know it's serious. Right now, anyone can make a YouTube video. Anyone can make a YouTube video.

KEILAR: Eric Fehrnstrom was just on. He said, "I think I see where this is heading, and I think it's heading into the living rooms of people in Iowa and New Hampshire." What do you think about that?

CHRIS MOODY, CNN POLITICS SENIOR DIGITAL CORRESPONDENT: Quite often people will test their campaign ads online. Like you mentioned, it's free.

Now, for a guy like Donald Trump, he has as, of today, four million Twitter followers. He can put something out, and it can reach a heck of a lot of people, perhaps more so than even some people can reach on air in some capacity. So right now, this is a point in the campaign where they don't have to spend a lot of money.

BASH: And let me just add one thing to this. I know this might sound conspiratorial. But I'm pretty sure this is in large part how it works. Remember, Jeb Bush's super PAC, as you mentioned, they're the ones with the -- they're the ones with all the money, the $100 million. They can't legally speak to the Bush campaign. If the Bush campaign starts to send some smoke signals, like, "This is where we want to head," then the super PAC can see that, and say, "Oh, hey, got it."

KEILAR: Let's clobber Trump. Let's do this and spend a lot of actual money.


KEILAR: Sorry, no go on.

MURRAY: from the Bush (UNINTELLIGIBLE) that, as of right now, nothing in the works going after Donald Trump on the airwaves. But they're hoping to be...

BORGER: Let's see them at the same time.

KEILAR: I have a Trump Instagram video, and Gloria, I want you to react to this. Let's -- let's go ahead and watch this. (BEGIN VIDEO CLIP)

BUSH: We recognize the commitment of someone who has devoted her life to public service. I want to say thank you to both Secretary Clinton and to President Clinton.

CANDY CROWLEY, FORMER CNN ANCHOR: What does that make Hillary Clinton to the Bush family?



KEILAR: I mean, these ads are pretty effective, Gloria.

ALLRED: Yes. They're pretty effective. First of all, that's kind of funny, actually. And it makes the -- you know, it makes the dynasty point. It not only sort of attacks, you know, Jeb, but it attacks Hillary Clinton. And it's -- you know, it's perfect. And it joins the dynasties together, saying, "Enough of those folks." And, of course, I believe Trump tweeted about that today.

MOODY: But if you're Jeb Bush's team, you're ripping your hair out. Because of course, the relationship between Donald Trump and the Clintons is very cozy. It has been for a long time.

BASH: He actually gave her money.

MOODY: That's the difference between Donald Trump and any other candidate. None of this stuff sticks. Anger toward anti- establishment tide where politician outweighs something Donald Trump might have done or said.

KEILAR: Much to the frustration of so many Republicans, we will continue this conversation in the coming days and weeks, I promise.

BORGER: Top of the hour?

KEILAR: Yes, at the top of the hour. Chris, Dana, Gloria, Sarah, thank you, guys.

And coming up, stunning new information on the leader of ISIS. A brutal killer who was once a shy young soccer player, and later a trusted U.S. prisoner. Does he have a weakness the U.S. can exploit?

And now China and Russia are using stolen data from government records and even a cheating website to try to unmask and compromise U.S. nations.


[17:43:03] KEILAR: Is the United States already losing a cyber-war with China and Russia? Disturbing new information shows American adversaries are stealing huge amounts of data from government and businesses and sifting through it to gain an advantage over the U.S. CNN chief national security correspondent Jim Sciutto has been digging

into this. This is fascinating and alarming.

SCIUTTO: Well, it's extremely alarming. I've spoke to a U.S. official with deep knowledge of the extent of this. And it is truly extensive, and it is continuing. And perhaps the most alarming thing is that most U.S. government agencies still do not have the ability to defend against these kinds of attacks.


SCIUTTO (voice-over): Chinese and Russian intelligence services are collecting personally identifiable information on a grand scale so they can target American government workers for U.S. intelligence, a U.S. official tells CNN.

China has been particularly active, the official says, part of a national strategy. The foreign spy agencies then use a massive database analysis to combine information from hacks as diverse as the Office of Personnel Management to the cheating website Ashley Madison to identify, potentially compromise agents.

MARC ZWILLINGER, FOUNDER, ZWILLGEN PLLC: Taken together, they really ratchet up the level of harm. The OPM breach has confidential information about U.S. personnel and people who have applied for security clearances. And the Ashley Madison breach reveals some of people's most intimate secrets the affairs they may be having about the relationship. Together it provides a lot of leverage that could be used to blackmail and possibly influence U.S. personnel.

SCIUTTO: Both countries use private contractors including hackers to infiltrate U.S. systems to help hide the true source of the cyber- attacks. Governments also carry out their own attacks.

Cyber-attacks have been on a gradual upswing since the mid-2000s, due to their success, a U.S. official says. The Obama administration has repeatedly acknowledged the threat.

JOHN EARNEST, WHITE HOUSE PRESS SECRETARY: We're confronting a persistent and dedicated adversary. The threat is ever evolving.

[17:45:01] And it is critically important for us to make sure that our defensive measures that are intended to prevent these kinds of intrusions reflect that ever evolving risk.

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Still repeated internal reports have found that U.S. government systems remain vulnerable to such attacks. Even so, many U.S. government agencies, according to a U.S. official, still lack urgency in addressing the problem.

MARC ZWILLINGER, CYBERSECURITY EXPERT: What the OPM breach really revealed is that the government cybersecurity isn't up to par of the private sector and we know the private sector suffers security breaches all the time. So it's a wakeup call both for the government networks and commercial networks. (END VIDEOTAPE)

SCIUTTO: With that lack of urgency, I asked this U.S. official, are attacks like this on the U.S. government possible going forward? The answer was equally alarming, Brianna, not possible, but likely. The successful attacks like this are likely going forward because -- and keep in mind you have as many as 100 U.S. government agencies that many of them don't -- aren't responding to this to the point where they can defend against these attacks despite all the warnings they've had.

BRIANNA KEILAR, CNN ANCHOR: They're so vulnerable.

Jim Sciutto, great report. Thanks so much.

Coming up, stunning new insight on the leader of ISIS. This brutal killer was once a shy young soccer player and then later a trusted U.S. prisoner. So how did he become so powerful? And what is his Achilles heel?

And then after Jeb Bush goes after Donald Trump's record, Trump goes on the record. Stand by for a CNN interview as Trump talks about his days as a Democrat and even his ties to the Clintons.


[17:51:03] KEILAR: We are getting some really extraordinarily new insight about the brutal and sadistic killer who runs the world's most feared terror organization.

CNN's Brian Todd has been looking into this.

What have you found, Brian?

BRIAN TODD, CNN CORRESPONDENT: Brianna, tonight we have new information on the shadowy ISIS leader. His background, his personal life, his willingness to draw blood. It's all been shrouded in a religious fervor which led his own relatives to call him the believer.


TODD (voice-over): He was shy, withdrawn, mumbled as he spoke. The other young people who played soccer with him admired his skill, nicknamed him after two Argentine stars, and sensed there was a fire beneath the surface.

WILLIAM MCCANTS, BROOKINGS INSTITUTION: Baghdadi was a very intense soccer player. He wanted to win and he wanted to score goals and he would get furious when he didn't.

TODD: New insights tonight into ISIS leader Abu Bakr al-Baghdadi. An extensive profile written by scholar William McCants with stunning new details on the terror leader's early life.

Baghdadi had relatives who joined Saddam Hussein's Baath Party. Two of Baghdadi's brothers served in the Iraqi Army. One was killed in the Iran-Iraq war, according to McCants.

MCCANTS: Baghdadi was actually nearsighted so that precluded him from service in the military so he focused his intellectual energy on becoming a religious scholar.

TODD: He channeled that into jihad but when U.S. forces detained him at Camp Bucca in 2004, they barely saw him as a threat and didn't think he was a jihadist.

MARTIN CHULOV, CORRESPONDENT, THE GUARDIAN: The Americans seemed to see Abu Bakr as somebody who could keep the prison quiet. There were 24 camps within the Sunni side of Camp Bucca. He was allowed open access to all of them.

TODD: According to a senior ISIS commander who spoke to "The Guardian," Baghdadi was known in the prison as a fixer who could settle disputes between competing factions. But also liked to divide and conquer.

MCCANTS: Baghdadi from his early childhood had a need to control the behavior of others.

TODD: McCants writes that Baghdadi has at least six children and has kept his wives from public view.

MCCANTS: We believe he had two wives. He may also have a number of concubines. These poor women who have been taken into captivity by the Islamic State.

TODD: Including American Kayla Mueller who was repeatedly raped by Baghdadi before being killed, possibly in an airstrike. Analysts say the man who's ordered captives to be beheaded and burned alive in front of video cameras will be difficult for ISIS to replace if he is killed.

PAUL CRUICKSHANK, CNN TERRORISM ANALYST: Not many within the top level of ISIS have his collection of attributes, the fact he's a direct descendant of the Prophet Mohammed, the fact he has a PhD in Islamic studies, the fact that he's a good organizer and somebody who is absolutely ruthless.


TODD: But Paul Cruickshank says Baghdadi has a compulsive side that could be his undoing. He points out with all of Baghdadi's caution over his security, the fact that he reportedly kept going to the same ISIS safe house in Iraq to assault Kayla Mueller was a dangerous move, showing a reckless, sadistic pattern that could be his Achilles heel and might give the U.S.-led coalition a chance to target him -- Brianna.

KEILAR: When experts look at him and other terrorist leaders, how does he compare to, say, Osama bin Laden?

TODD: Well, they say that really in person he is not as charismatic as Osama bin Laden and that is one reason that he has not really appeared in public very much, other than that one sermon that he gave in Mosul in July of last year. This cloak of security and secrecy surrounding him, it adds to his mystique but it's also calculated to kind of make sure that he doesn't get out there in public so much. It might expose him a little bit as being a little bit underwhelming in person.

KEILAR: Yes. Cover up some shortcomings maybe.

TODD: Sure.

KEILAR: All right. Brian Todd, great report. Thank you.

Coming up, our breaking news. That massive search for suspects, three of them, in the killing of a police officer who was found stripped of his weapon and his equipment. There are helicopters, canine units, SWAT teams that have been called in. Schools and businesses put on lockdown.

And this. After Jeb Bush goes on the attack Donald Trump plays defense and we're standing by for his new CNN interview.



KEILAR: Happening now, Trump's defense. He is opening up about his past as a Democrat and his days of cozying up to the Clintons, even as Jeb Bush tries to use it all against him. Stand by for a new CNN interview with the GOP frontrunner.

And debate twist. As Republicans prepare to face off again in just two weeks, CNN is making an important announcement about the rules. Stand by for details of that.

On the loose. Federal agents join a massive manhunt for three suspected cop killers. A community outside Chicago is living in fear. CNN is at the scene. We're getting new information about the search and the danger.

And hands up. A video appears to show two Texas officers killing a man as he raised his arms seemingly to surrender. We'll tell you what we're learning about the case that's causing so much outrage.