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The Situation Room

Stocks Soar, Then Sink: Dow Drops 205; Trump Attacks Bush Over 'Anchor Baby' Stumbles; Trump Takes Lead in South Carolina Poll; Network Chief Calls on Trump to Apologize; Train Suspect Charged with Attempted Mass Murder; Interview with Representative John Garamendi; Train Suspect Flagged as Potential Foreign Fighter. Aired 5-6p ET

Aired August 25, 2015 - 17:00   ET

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

[17:00:00] BERMAN: Be sure to follow the show and me on Facebook or Twitter. Tweet us, @TheLeadCNN. That's all for us. I turn you over to Wolf Blitzer in THE SITUATION ROOM.

WOLF BLITZER, CNN ANCHOR: Happening now, breaking news. More losses, Wall Street rallies after a massive selloff but loses steam and plunges again as the Dow ends down another 200 points. What will it take to stop the bleeding?

Back on the attack. Donald Trump launches more insults at presidential candidates, a world leader and a FOX News anchor. But he's taking some tough hits, as well. Trump has a live campaign appearance coming up. How will he respond?

Terror ties. The gunman who was subdued by fellow passengers on a high-speed chain is charged with attempted mass murder and other crimes. Prosecutors say he viewed jihadist videos aboard the train, and investigators are urgently looking into links to a terror organization.

And Putin on a show. Russia's president cozies up to American allies at a Moscow air show, but as Russia moves ahead with an advanced missile sale to Iran and threatens more aggression in Ukraine, does the U.S. have an answer?

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

ANNOUNCER: This is CNN breaking news.

BLITZER: The breaking news: stocks skyrocket, then fizzle again. A day after an extraordinary worldwide selloff, all three Wall Street major indices finished in the red.

The Dow took off but ran out of gas, ending down 205 points. In the last five trading days, the Dow is down more than 1,800 points. In three months, the last three months, the Dow has dropped almost 3,000 points from its all-time high.

Donald Trump is back at it. He's lashing out at his rivals, calling Jeb Bush a mess. He's lashing out to the president of China, and he's once again lashing out at FOX News anchor Megyn Kelly, earning an angry rebuke from the powerful FOX News boss, Roger Ailes. Trump is on the receiving end, as well. GOP candidate Lindsey Graham

today called him -- and I'm quoting him now -- "a complete idiot."

So what will Trump say next? We're standing by for a campaign appearance in Iowa.

And our correspondents, analysts and guests, they're standing by with full coverage of today's top stories. Let's begin with the breaking news. Dramatic rise, then another breathtaking fall on Wall Street. Let's get straight to our business correspondent, Richard Quest. He's got all the details -- Richard.

RICHARD QUEST, CNN BUSINESS CORRESPONDENT: A most extraordinary day that took place, Wolf. Never seen anything quite like it. A Dow Jones that at the open had rich more than 400 points.

We saw a range today of 640 points. At its top, it was up 441. By the time it closed, just look at that last hour and a half of trading, Wolf. And the Dow's lowest point, down 220.

And there was seemingly no obvious reason for why the market suddenly turned turtle in the last 45 minutes or so, other than a feeling that there are more losses in Asia to come.

I want to show you how the last few days have traded. Because this is significant when you look at the last five days going back from last Wednesday.

This -- just put this into perspective. Wednesday, 163. Last Thursday, 358. Friday 531. Yesterday 588. And today we're now off 205 points.

It's a total of about 1,850 odd points, give or take.

Now, what that means from the all-time high back in May, the market is off 14 percent. And since this fall actually began, the market is off somewhere around 10 percent.

Wolf, there is no question about it. Wolf, we are now starting to see the complete feedback loop. Asia was down, Europe was up, but the U.S. couldn't maintain that momentum. And now the U.S. takes all of this with the Dow Jones down so sharply, the U.S. takes it all and shoves it back into Asia, where the markets also fell, Wolf.

BLITZER: So the question is, and a worrisome question, as you know, Richard, because as you point out, May 19 of this year, just three months ago, the Dow hit its all-time high, 18,351. It's been down almost 3,000 points since then, 1,800 in the last few days alone. What's going to happen? People are wondering, is it still going to continue this steady slide, slide, slide?

QUEST: OK. So the first thing we have to understand is what we saw today is volatility. Yes, the market might be down at the close on a one-day basis. But if you look at it over a one-year basis, what you start to see, we're seeing an enormous amount of volatility, and that volatility is going to continue. Because what the market is now seeking is any form of certainty.

Whether that comes from the Fed saying at Jackson Hole, "Don't worry. Interest rates are not going to move anytime soon," or whether it comes from China.

[17:05:29] At the moment, everybody I'm speaking to is saying the pressure on the market is down. It's not huge. It just takes something to turn it round. And there's no reason other than low prices in some markets on certain stocks. If you look at the Dow 30, you would see certain stocks did manage to rally, but they did so very late in the session.

Otherwise, I'm afraid to say you're waiting, you're watching, and you're seeing for a reason for the market to turn, and there isn't one at the moment.

BLITZER: A very gloomy assessment, at least for now. Let's hope it changes. Thanks very much, Richard, for that report.

Other news we're following. Donald Trump once again hammering Jeb Bush over the use of the controversial term "anchor babies" to describe children born to undocumented immigrants in the United States.

Our political reporter, Sara Murray is tracking the latest war of words between the two Republican rivals. She's joining us from Dubuque, Iowa, right now where Donald Trump is getting ready to have a campaign rally. So what's the latest over there, Sara?

SARA MURRAY, CNN POLITICAL CORRESPONDENT: There are 17 Republicans in the field, but today you would think it was a two-man race between Jeb Bush and Donald Trump.

Today Donald Trump was feeling pretty fiery on Twitter, going after Jeb Bush for what, like you said, the anchor babies phrase. Let's take a look at that tweet now.

Trump said, "Asians are very offended that Jeb said that anchor babies applies to them as a way to be more political correct than Hispanics. A mess."

Now, he was referring, of course, to comments Jeb Bush made yesterday, saying anchor babies doesn't just apply to Hispanics. Let's take a look at that.

(BEGIN VIDEO CLIP)

JEB BUSH (R), PRESIDENTIAL CANDIDATE: What I was talking about was the specific case of fraud being committed where there's organized efforts -- and frankly, it's more related to Asian people -- coming into our country.

(END VIDEO CLIP)

MURRAY: Now, Jeb Bush may have been trying to defend his use of the phrase "anchor babies," but it looks like it was a little bit of a stumble for him. Today he tried to clean up that mess in Colorado. Let's take a look at what he had to say today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I was wondering if you regret your use of the term "anchor babies" and your scapegoating of the Asian immigrant community yesterday in your explanation for the use of that term.

BUSH: So, look, my record is pretty clear. I'm married to a Mexican- American United States citizen. I'm -- I'm immersed in the culture. I'm bilingual. I feel like I'm bicultural. I'm proud of the diversity of my own family. And my record, not just yesterday but over my lifetime, is one that people can look at.

I was talking about a very narrow-casted system of fraud where people are bringing children -- bringing pregnant women in to have babies to get birthright citizenship.

I support birthright citizenship, by the way. And so I appreciate the comment, but I'm 62 years old. When I was 17 years old, I fell in love with Columba Garnica Bush, and it's going to be really hard for me to get lectured to by anybody about the politics of immigration.

(END VIDEO CLIP)

MURRAY: There you can see there Jeb Bush using his family to defend himself. It's clear that the battle between Bush and Donald Trump has really been escalating in the last couple days. The question for Jeb Bush is, is he going to face the same fate as some of the other Republicans who tried to take on Donald Trump and are now finding themselves languishing in the polls.

Back to you, Wolf.

BLITZER: Sara, I see a lot of empty chairs so far. They're presumably going to be full for this Donald Trump rally, which is going to begin soon over there where you are in Dubuque, Iowa. Is this a huge room, a small room? How many people are anticipated?

MURRAY: Well, they haven't started letting people in yet, which is why the room is empty. There are a couple people lined up outside, a few dozen.

The campaign says they're expecting 3,000 people tonight. But we have some intrepid CNN embeds here who actually went around and counted all the seating, and they said you can seat just above about 1,000 people. But there's lots of standing room. So we'll be keeping an eye on what the actual crowd count ends up being tonight. As you've seen, they tend to be a little controversial when it comes to Donald Trump.

BLITZER: All right. We'll stand by for some live coverage of that, as well. Sara, thank you.

Let's discuss Donald Trump and all of the latest political news with our experts.

Joining us, our CNN political commentator, Ryan Lizza. He's also the Washington correspondent for "The New Yorker" magazine. Our political contributor, the Republican strategist Kevin Madden, and our CNN national political reporter, Maeve Reston.

Maeve, just today, Jeb Bush's campaign put out a lengthy statement, as you know, hitting Donald Trump for not having what was described as a serious immigration plan, saying, quote, "I'm not surprised Donald Trump endorsed big government, big budget, anti-free market ideas. That's how he approaches most issues, from healthcare to taxes. He's a big government guy, and that's how big government guys think."

[17:10:00] So what do you make of this new approach from Jeb Bush, going on the attack, if you will, against Donald Trump?

MAEVE RESTON, CNN NATIONAL POLITICAL CORRESPONDENT: Well, we really start -- saw this start to emerge when he went to the Iowa State Fair, and his campaign came out and started really drawing some policy contrasts to Donald Trump.

I actually think this is a really good fight for Jeb Bush to have. He is in the conversation. Many of the other Republican candidates have kind of faded away. So as much as Trump keeps going back and forth at him, Jeb is trying to push the conversation over to a policy discussion, where he thinks that he can win against Donald Trump.

I don't know if that's true or not. I think we'll have to wait and see on that front. But clearly, this is the back and forth that the -- that the Bush campaign wants to have; and they feel like it's working for them right now.

Jeb has had some stumbles along the way, including yesterday with some inelegantly phrased positions on policy, so he's working through that. But I think that the back and forth with Trump is sharpening him up as a candidate.

BLITZER: What do you think, Kevin, because you've suggested that, given the comments, given the attacks that are now going all across the board, the pre-season is over. They are in the full season, the regular season right now. And that some of Trump's criticisms of Jeb Bush -- low-energy, weak, not really strong -- that that's going to -- some of those images will last in the minds of voters.

KEVIN MADDEN, CNN POLITICAL CONTRIBUTOR: We are moving very quickly from the earned-media-only phase of this campaign to a, you know, paid-media-contrast phase of this campaigns where all these candidates are going to be sizing them up.

I think to Maeve's point, the Bush campaign does see this opportunity to consolidate that part of the electorate that is not with Trump right now and really start to improve their position in the polls.

I think that is one of the big risks, though that they have faced in the last few weeks, is that, right now this is an electorate that's putting a premium on who's going to be a strong fighter. And when you see Donald Trump is the only one doing the punching, and Jeb Bush wasn't doing any of the counter-punching, I think that worried a lot of Jeb Bush supporters. But also, I think, it made a lot of people sit up and wonder, is this the guy that's right for us?

So now I think you're seeing the campaign start to fill that void. The Jeb Bush campaign is going to counter punch every time that they see an opportunity with Trump.

BLITZER: The new South Carolina Monday Monmouth University poll, Ryan, and you've seen it, look at this. South Carolina likely Republican voters, Trump at 30 percent, Dr. Ben Carson 15 percent, Jeb Bush down at 9, Marco Rubio 6, everybody else either 6, 5, 4. South Carolina Senator Lindsey Graham at only 4 percent. What do you make of this South Carolina poll?

RYAN LIZZA, WASHINGTON CORRESPONDENT, "THE NEW YORKER": Well, it's not just South Carolina. But you see Jeb Bush fading across the board in the early states and Donald Trump not just continuing to be dominant but gaining traction.

There's a poll out in New Hampshire where he's well over 30 percent and Bush is out of the running. Basically, everyone else is out of the running.

I think what Jeb has finally come alive and started to attack. Their original strategy in the Bush campaign was, look, we have $100 million, super PAC plus campaigns, more money than a lot of the candidates combined. We can stay in this race longer than almost anyone else. And let's just wait to see about if this Trump phenomenon lasts or if he implodes.

Well, he didn't implode. He -- every single attack, everything that any of us predicted would hurt him, only made him stronger. I think there's a certain -- maybe desperation is too strong a word. I think there's a certain sense from the Bush campaign that someone's got to take him out, and it better be them.

Long-term, though, Bush is sitting on $100 million. Bush and Trump have the most money. They can go the longest in this campaign. And if at the end of the day, it's Bush versus Trump, that's good for Jeb Bush.

BLITZER: You know at this campaign rally in Dubuque, Iowa, that Trump is about to address, he's going to go after Bush once again, presumably some of the other Republican candidates, as well.

Maeve, Donald Trump also went after Senator Lindsey Graham in a tweet today after this Monmouth University poll came out. He wrote, "Congrats, @LindseyGrahamSC. You just got four points in your home state of South Carolina. Far better than zero nationally. You're only 26 points behind me."

Later in the day, Lindsey Graham was on CNN with Kate Bolduan and he said this.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R-SC), PRESIDENTIAL CANDIDATE: The policies that Mr. Trump is proposing are demagoguery. His approach to describing legal immigrants are hurting us with Hispanics. The way he attacks women is going to be a death blow to the future of our party. Come to South Carolina, and I'll beat his brains out. I know my state. This is a silly season in politics.

(END VIDEO CLIP)

BLITZER: And he also said that Donald Trump was, in his words, "a complete idiot." All right. So go ahead and give us your analysis of what we just saw.

RESTON: Well, I mean, if anybody knows how to throw a punch, it's Lindsey Graham. So I think that is a fun fight to watch.

[07:15:00] So far Lindsey Graham hasn't been able to get much oxygen in this race, but it should be interesting to see what happens when Trump does go to South Carolina and take him on directly.

I think that what -- the more serious point that Graham was making there, though, is that he and other Republicans really do feel like this rhetoric from Donald Trump is hurting their party. And they are trying to draw out contrasts that make voters pay attention to the fact that Donald Trump does not speak for the Republican Party, and there really is a wide spectrum of opinions on a lot of these issues, from immigration to climate change to everything else.

And so if Lindsey Graham is out there making that argument, that probably gets him a little bit of attention along the way.

BLITZER: All right, stand by. Everyone stand by, because we have a lot more to discuss, including the end -- we thought there was a ceasefire between Donald Trump and FOX News. Not necessarily. That ceasefire has now been broken, as Donald Trump has gone after the FOX News anchor, Megyn Kelly, again. Now Roger Ailes is weighing in. Much more to assess when we come back.

(COMMERCIAL BREAK)

[17:20:47] BLITZER: Donald Trump certainly well-known for his confrontational style, which he frequently brings to his Twitter account.

He started a fresh assault today on FOX News anchor Megyn Kelly, tweeting, "I like 'The Kelly File' much better without Megyn Kelly. Perhaps she could take another 11 days -- 11-day unscheduled vacation."

Today the FOX News chairman, Roger Ailes, responded with a statement saying, "Donald Trump's surprised and unprovoked attack on Megyn Kelly during her show last night is as unacceptable as it is disturbing. Donald Trump rarely apologizes, although in this case, he should."

We're back with our team of political experts. Kevin, explain to me: I thought there was a ceasefire since the Republican debate until last night. All of a sudden that ceasefire is broken when Donald Trump starts tweeting these negative comments about Megyn Kelly. MADDEN: Well, look, this is typical Donald Trump in the sense that he

wants to build up a whole bunch of news about him versus Megyn Kelly. Because I'll tell you what. He's going to go on Megyn Kelly's show. It's going to be a very highly rated interview. It's going to be, you know -- you know, marketed as this big confrontation. And then he's going to attack all of his other opponents. He's building up his audience in order to send another message. Pretty typical Trump.

BLITZER: Do you agree he knows that he should be -- I can understand going to war if you're a Republican presidential candidate with liberal news organizations. Mainstream media, as they call it. But to go to war with the FOX News Channel?

LIZZA: Republicans -- No. 1 source of news for Republicans, and especially hardcore primary voters, is FOX News. So it seems very dangerous.

On the other hand, I used to think there was no rationale or reason when Trump would start these fights, but the more I think about it, you know, someone said today his -- the way to think about Trump is professional wrestling. That's how he views this thing. It's professional wrestling, and it's reality TV. So he's constantly thinking about what the story line is for the day or the week, and he's constantly inventing new story lines just like a great reality show or just like a great WWF match. And's I think that's -- he's playing the media, in a way, by starting these fights. And he knows the coverage is irresistible for us. And I think there's a lot...

MADDEN: And there's a lot of people rooting for the villain in these WWF matches, too.

LIZZA: And the Republican base, which is very angry at the establishment.

BLITZER: You make a good point. If this is sort of like professional wrestling, going into -- if he's going to appear on her show, on Megyn Kelly's shows, the ratings would be huge.

RESTON: They would. And I love -- I love Kevin's theory on that.

I will say, though, that when I was out talking to voters in Iowa, New Hampshire after he started going after Megyn Kelly, that there were a lot of women that I talked to who were interested in Trump, intrigued by him, but who didn't like that level of nastiness. So I think that there is a risk for Trump on that front.

But as Ryan points out, many of the things that we have said about Trump in the past have been wrong. So I don't know if this is the best strategy for him, but it certainly does keep people tuning in every day. And he's controlling the conversation, again and again driving the story lines. And that's making it really hard for all of the other Republican candidates to get their message out.

BLITZER: And we're waiting it see what he says at this rally that's about to take place in Dubuque, Iowa, where Trump will be speaking. Guys, stand by. The Republican presidential candidates now are just weeks away from

their second presidential debate. It will air right here on CNN on September 16, live from the Reagan Library in California.

Coming up, we're receiving new information about the gunman who was subdued aboard a high-speed train in France. What are investigators learning about the suspect from his travel records?

And later, Russian President Vladimir Putin antagonizes the United States, this time with a sale of missile systems to Iran. We have new details.

(COMMERCIAL BREAK)

[17:29:09] BLITZER: We're learning more about that desperate struggle aboard a high-speed train in which a heavily-armed gunman was an subdued by fellow passengers. He now faces multiple charges, including attempted mass murder. A French prosecutor says there's clear evidence of terrorist intent and that the suspect sought to kill, quote, "a whole train full of people."

Brian Todd is here with us in THE SITUATION ROOM, looking into what's going on. What are you finding out, Brian?

BRIAN TODD, CNN CORRESPONDENT: Tonight, we have learned some crucial new details in this case, information on Ayoub El-Khazzani's travels before he boarded that train on what might have inspired him to attack at that very moment. And we have new details on the weaponry he was carrying as he allegedly prepared to kill innocent passengers.

(BEGIN VIDEOTAPE)

TODD (voice-over): He came out of the train bathroom with no shirt on, armed with an assault rifle, automatic pistol, and more than 200 rounds of ammunition. It could have been a blood bath. And tonight, Paris' chief prosecutor for the first timereveals what he says was Ayoub Khazzani's intent, to commit a terrorist act.

[17:30:00] FRANCOIS MOLINS, FRENCH PROSECUTOR (through translator): While on the train, El-Khazzani was looking at jihadi YouTube sites which called for people to carry out terrorist acts.

TODD: A far cry from Khazzani's claim that he was on the train to rob passengers. What the suspect didn't have, according to one of the Americans who took him down, was skill in firing his weapons.

ALEK SKARLATOS, HELPED TAKE DOWN GUNMAN: He clearly had no firearms training whatsoever and, yes, if he knew what he was doing, or even just got lucky and did the right thing, he would have been able to operate through all eight of those magazines. And we would have all been in trouble and probably wouldn't be here today.

TODD: Tonight the prosecutors charging Ayoub Khazzani with attempted murder, attempted mass murder, and membership in a terrorist organization. And CNN has learned from European security officials about Khazzani's

travels before he boarded the Amsterdam to Paris train in Brussels. French prosecutor Francois Molins says Khazzani emigrated to France from Spain, where he'd been radicalized at a mosque.

The suspect claims to have bounced around between cities in France, German, Austria and Belgium, claims to have been homeless for a period, living in a park in Brussels.

The French prosecutor says Khazzani was flagged for surveillance in France but was never actually followed. A German security source says when Khazzani flew through Berlin to Turkey in May, he was flagged for a search, then allowed to proceed.

How could he have fallen through the cracks with two of Europe's top security agencies?

THOMAS SANDERSON, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: For an individual, if you're going to surveil him, you need 10, 20, 30 or more police to surveil someone and follow them, to make sure they don't pick up on the tail.

When you have a couple thousand, up to a couple thousand Frenchmen who've gone over into the battle, that means tens of thousands of people to surveil those individuals alone.

(END VIDEOTAPE)

TODD: The French prosecutor says security services are also investigating who might have financed Ayoub El-Khazzani, because despite his claims of being homeless, of living in a park, he did seem to have means. His train ticket was first class, costing 149 euros, about $170. That's according to the prosecutor.

And despite having a return plane ticket for his trip to Turkey, he apparently never used it, according to French and German sources, somehow obtaining a separate ticket to travel from southern Turkey through Istanbul to Albania, then somehow back to either Brussels or France, Wolf.

BLITZER: Yes. They're obviously looking to see where he got that money from. All right, Brian. Thanks very much.

Joining us now is a member of the House Armed Services Committee, Democratic Congressman John Garamendi of California.

Congressman, thanks for joining us.

Ayoub El-Khazzani was flagged as a potential foreign fighter. Those are the official words from the Europeans. While he was in Germany en route to Turkey. Does Europe have enough coordination amongst themselves as far, as these foreign fighters are concerned?

REP. JOHN GARAMENDI (D), CALIFORNIA: No. No, they don't. It's obvious from this situation and from others that they do not. Although they're working at it. And keep in mind that Europe has open borders from one country to another. So it's a very, very difficult situation.

I think another question is, does America have appropriate communication with European governments about men, women that may be trying to travel into the United States? It's a question. I hope we do. I am not sure that we do, however.

BLITZER: Because it's a very serious question. He has a European passport. He doesn't even need a visa to come to the United States. The question is would he have been flagged if he had decided to fly from Paris to New York?

GARAMENDI: Well, that's a very good question for the Congress of the United States to ask our homeland security folks. And if not, then what can be done to obtain, for our border and our airports, the appropriate information that we need about folks that have been flagged in Europe as being potential troublemakers.

BLITZER: The cash. He needed a lot of money to fly from Paris -- or from Berlin to Turkey, then fly back to Paris. Then get a first-class ticket on that high-speed rail, that train from Amsterdam to Paris, to get all these weapons, all that ammunition. I suppose they're trying to find out where this so-called homeless guy got all that money.

GARAMENDI: Well, that's the connection. And I'm sure that connection will be made. You just don't go pick up eight magazines, an AK-47 and an automatic pistol anywhere. You've got to have money. You've got to have a connection. Somebody somewhere set it up, and apparently, the French prosecutors think that this guy is tied to some sort of a terror cell somewhere.

We need to know that in America, because that may very well provide us with information about people that might be coming into this country, and certainly, it's information the European authorities must have.

[17:35:06] BLITZER: Because the French prosecutors say that El- Khazzani while on that train just before the shooting incident, he was actually looking at videos, quote, "inspiring people to jihadi acts." They found that on his phone while he was on the train.

Here's the question, though. Watching those videos alone, does that automatically cause red flags among law enforcement authorities?

GARAMENDI: It should. And it also ought to cause red flags among those Internet companies that are allowing those videos to be shown.

This is something we've talked about here in the United States. Is does the -- Internet companies, YouTube, Google, others, have a responsibility to take a hard look at the kind of things that are being displayed on their networks? My answer is, yes, they should. They have a responsibility.

And when they see these kinds of things that are clearly inspiring jihadists, they should take them down and they should similarly report that to the appropriate authorities, either local or federal. BLITZER: Congressman, I want you to stand by. We have more to

discuss, including new information. The U.S. now deploying F-22 fighters, sophisticated jets to Europe in the face of what is perceived to be threats from Putin and Russia, as Russia is getting ready to sell a new sophisticated air defense system to Iran. Much more with Congressman Garamendi when we come back.

(COMMERCIAL BREAK)

[17:41:02] BLITZER: Congressman John Garamendi of the House Armed Services Committee is still with us. We'll get back to him shortly.

But first this. The Pentagon now warning that the United States will still have ways of responding as Russia moves forward with the sale of an advanced air defense missile system to Iran.

Let's go to our Pentagon correspondent, Barbara Starr. She's got new information. What are you learning, Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Wolf, Vladimir Putin likes nothing better than to put on a show. But every when he's doing that, he is sending a message.

Warplanes take to the skies, part of an exhibition near Moscow. Russian President Vladimir Putin watching intently.

Flanked on one side by Jordan's King Abdullah, on the other by the crown prince of Abu Dhabi.

Two key U.S.-Middle East allies that Putin is courting. Later, telling Crown Prince Sheikh Mohammed, bin Sayyaf.

VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): I'm glad to use this time to talk about regional and our bilateral relations.

STARR: Putin is talking to both leaders about the fight against ISIS and the war in Syria, where Russia is still supporting Syrian leader Bashar al-Assad, over U.S. objections.

Not the only Putin move in the Middle East that has the U.S. deeply worried. Russia is selling an advanced S-300 air defense radar and missile system to Iran to help secure Iran's air space.

PETER COOK, PENTAGON PRESS SECRETARY: We obviously have problems. We've experienced those concerns to the Russians. We don't see this as a positive development. At the same time here at the Defense Department, the president will have options available to him.

STARR (on camera): Options to do what?

COX: Military options.

STARR (voice-over): And in Europe, as Russian fighters continue threatening Ukraine, the new advanced U.S. Air Force F-22 fighter preserving U.S. options against Putin. The air force announcing several F-22s are now being sent to Europe on a training exercise to reassure U.S. allies worried about Russian advances.

STARR: We'll get the F-22 into facilities that we would potentially use in a conflict in Europe.

(END VIDEOTAPE)

STARR: And you'll remember, it was just a couple days ago Defense Secretary Ash Carter called Russia antagonistic. That's the U.S. message back to Putin. No indication he's planning to change his behavior anytime soon -- Wolf.

BLITZER: All right, Barbara. Thank you.

We're back with Democratic Congressman John Garamendi of California. He's a member of the Armed Services Committee.

So the U.S. sending these F-22 raptors, supposedly for training missions in Europe. Does NATO right now, based on everything you know, Congressman, have enough military might to -- hopefully, it never happens -- have to fight Russia if things really heat up?

GARAMENDI: Well, I think you said the right thing, and that's hopefully, not have to fight Russia.

What we're doing is displaying our power. We have awesome power. We have an incredible ability to wage war wherever we may need to wage war. But we really do not want a war in Europe. We've seen that too many times the last century, and it's really ugly, really, really bad.

All the while we need it make it very, very clear to Mr. Putin that you're not going to be able to do just anything you want to in eastern Europe. That there are consequences.

So it's really a show of strength. But it's also a show of determination.

At the same time, even during the Cold War, there were very serious and fruitful negotiations going on with the USSR at that time that led to a de-escalation of some of the major nuclear threats.

And we ought to be communicating with Russia in many, many different ways, certainly parliament to parliament, U.S. Congress to their parliament, as well as at every level. I know that Secretary Kerry did reach out to Russia. Communications very, very important. As is maintaining strength military and otherwise.

[17:43:11] BLITZER: What do you think of this Russian deal to sell Iran advanced S-300 air defense missile systems, which presumably would make any U.S. airstrike against Iran's nuclear facilities, if Iran does violate this nuclear deal, or an Israeli airstrike a lot more difficult if this deal goes through?

GARAMENDI: Well, I think the -- the question is, a lot more exactly what is that. Keep in mind that we have extraordinary capabilities. We've been prepared for a long, long time to deal with these kinds of defense systems, missile defense systems. And we do have the capability to deal with it. Is it more difficult than if they did not have it? Yes. Is it impossible? No. But the answer here is to make sure that that nuclear deal actually works, that we don't have to engage in offensive military action.

With regard to Jordan and others going to Russia, that's a game as old as the Cold War. Russia and the United States were constantly wooing the leadership in the Middle East, one side than the others. But there is also something underlying this that may be very, very important, and that is that Russia is Assad's Syria leadership, they are the supporters. And if there is going to be some sort of a deal worked out to deal with that terrible situation in Syria, Russia is going to have to play a role in that.

So maybe there is something good that's happening here behind the scenes. We can be hopeful. But at the same time, we have to be strong.

BLITZER: Congressman John Garamendi, thanks as usual for joining us.

GARAMENDI: Thank you.

BLITZER: Coming up being we're standing by to hear from Donald Trump. He's launching new attacks on his Republican rivals and on a FOX News anchor.

Will the GOP frontrunner escalate his war of words?

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[17:51:27] BLITZER: We're learning more now about that foiled attack on a high-speed train and the suspect who's now charged with attempted mass murder.

Let's bring in our law enforcement analyst, Tom Fuentes. He's a former FBI assistant director. And our CNN terrorism analyst, Paul Cruickshank.

Tom, Ayoub El Khazzani, he's the suspect in this particular case, he was looking at a jihadi Web site on this train just before the incident. They now have his cell phone of course. What does it tell you about how was potentially was radicalized?

TOM FUENTES, CNN LAW ENFORCEMENT ANALYST: Well, not so much how he was radicalized but he just that maybe he just wanted one last pep talk before going operational. You know, we don't know how far back he goes. Being radicalized, he was a drug trafficker from Morocco, ends up in Spain, other European countries last spring, in May travels to Turkey, then back.

So, you know, at what point he became radicalized, I don't exactly know when that was but it's clear that somewhere along the path it happened.

BLITZER: I'm sure they're going through his whole cell phone record to see what he was watching, who he was talking to and all that kind of stuff. Paul, you're also getting new information about El Khazzani's travel

back in Europe. What have you learned?

PAUL CRUICKSHANK, CNN TERRORISM ANALYST: That's right, Wolf. What we're learning is that he traveled back from Antakya in southern Turkey, in Hatay Province. And as you can see on that map now, that's just 15 miles from the Syria border so there is a lot of suspicion that he actually traveled over into Syria to perhaps link up with a group like ISIS. But they don't yet know for sure that he managed to actually get into Syria.

But on his way back, he actually come through Istanbul and takes a connecting flight to Tirana, the capital of Albania, which is a very strange way back into Europe. Perhaps because he wanted to fly under the radar screen, Wolf.

BLITZER: He was trying to masquerade his real intentions, is that what you're saying?

CRUICKSHANK: Absolutely. I mean, you know, if you were a tourist, you would just come back through a European port. But he actually travels to Albania in order to try and get back into Europe. That's very, very strange indeed. And perhaps because he was trying to mask what he was really up to and he didn't want European security agencies to know that he'd entered Europe again.

BLITZER: So this guy is supposedly a loser, he's homeless, he's got no money but he's flying from Berlin to Turkey and then back in a different route. He's got a first class ticket on this high speed rail from Amsterdam to Paris. He's got all these weapons and this -- the ammunition. Where does he get all this money?

FUENTES: I don't know. Obviously he had some cell providing that to them, some benefactor helping him get all that.

BLITZER: So he wasn't necessarily a lone wolf, as they say.

FUENTES: No. I don't think he was alone at all in order to acquire all of that stuff. And also, you know, this idea that he was going to do a robbery, all he had to do was sell that suitcase that had about a thousand dollars worth of weapons and ammunition in it. So this was not a pauper. First class ticket, $1,000 in weaponry and ammo. Now he was well-equipped and he wasn't necessarily well-trained but he was certainly well-equipped.

BLITZER: So, Paul, working assumption, you agree I assume, he was part of some sort of terror cell.

CRUICKSHANK: That's what they're looking at now. And they're not sure whether he may have joined up with a group like ISIS in Syria. But it's also possible that he could have met with ISIS in Turkey itself.

This growing concern from European security agencies that ISIS is using Turkey as a base to launch attacks back in Europe. And in fact, there was a plot in Paris in April to attack churches and other targets where the Algerian student who was involved in that actually met with ISIS operatives in a safe house in Istanbul and also in southern Turkey. And actually then got back to France and started discussing attacking passenger trains. So they're looking at all that very closely right now, Wolf.

[17:55:06] BLITZER: As they should.

All right. Paul Cruickshank, thanks very much. Tom Fuentes, thanks to you.

Coming up, Donald Trump lashing out at GOP rivals, at FOX News, even at a world leader. Why does his campaign resemble a reality TV show?

I'll ask a former "Apprentice" contestant who now co-chairs Donald Trump's efforts in Iowa.

And can Democrats soon be facing a nasty primary fight of their own. The Vice President Joe Biden, he gets the president's green light to jump into the presidential contest.

(COMMERCIAL BREAK)

BLITZER: Happening now, breaking news. How low will it go? The Dow Jones Industrial Average loses more ground than in a tense trading day. It's now down more than 1800 points in the last five sessions alone. So what's sending Wall Street into a nosedive?