and it opened up a whole new vista for american film. this is cnn breaking news. breaking news this morning on monday. welcome to our viewers in the united states and around the world. this is "early start." i'm dave briggs. >> i'm christine romans. it is monday, july 29th. we begin with breaking news in california. a family, a food festival in california farm festival turned into a deadly scene of terror. >> what's going on? what's going on? >> is that fire? >> what the [ bleep ]'s going on? >> oh, shooting. >> a gunman firing round after round at the annual garlic festival in gilroy 80 miles

south of san francisco. gilroy police say three people were killed in addition to the gunman and at least 11 people injured. a chief scott smithy telling reporters overnight that officers confronted the shooter almost immediately. >> officers were in that area and engaged the suspect in less than a minute. the suspect was shot and killed. we had many, many officers in the park at the time that this occurred, as we do any day during festival, which accounts for the very, very quick response time. >> smithy says witnesses reported a second attacker but he said it's unclear what role that person might have played. cnn's monitoring developments

from los angeles. he joins us live. what do we know? >> reporter: we do not have confirmation that there was a second attacker. this is still an active investigation. gilroy police saying there is a pause in their social media postings. we'll have to wait until later in the morning until we hear more, but let's hear what the police chief had to say when alluding to the second suspect. >> we believe based on witness statements that there was a second suspect involved in some way, but not just what way. >> reporter: he said they went down a creek and cut through a fence to get to the festival and then get near a stage where all of this happened as the festival was winding down.

also all of it very tragic and now we hear that one of the victims, a 6-year-old boy. back to you now, christine, dave. >> thank you so much for that. keep us updated with information. thanks. thousands were still enjoying the gilroy garlic festival as it began to wrap up sunday when shots rang out. the first man you'll hear was a stage hand in the final music act of the day. >> bullets were hitting the ground. you could see them going up. that's when i called out, it's a real gun. the crew and the band ran and hid underneath the stage. we were hiding underneath the stage. we could hear more gunfire happening. bullets were hitting the stage that we were heighting underneath and then eventually it stopped. people were calling out looking for different people. eventually we came out and i could see there was someone down and they were performing cpr on them. then i heard it was the gunman.

>> people were looking for their kids, too, and as soon as the gunfire started, everybody scattered and people were yelling for their kids. and, yeah, you just heard the -- >> reporter: so you heard rapid fire? >> it was like a semi-automatic going off really close, too. people screaming and hiding and ducking. >> then two shots rang out and at the same time the music started. opening act on the concert but after the first few seconds i heard so many shots. one bullet passed very closely and it hit our friend's chair. >> gilroy police are still looking for that possible second suspect. they're asking witnesses or anyone who took pictures or

recorded video to call the tip line. 408-846-0583. >> dan coates stepping down next month. president trump making that announcement on twitter. he plans to nominate john radcliffe to replace coates. radcliffe aggressively questioned former special counsel robert mueller last week in defense of the president. >> i agree with the chairman this morning when he said donald trump is not above the law. he's not but he damn sure shouldn't be below the law which is where volume two of this report put him. >> the truth be told, the two were not on the same page. coats strongly defended u.s. intelligence agencies in the fact that russia interfered. he was caught off guard by a trump/putin meeting. >> i do want to say we have some breaking news. the white house has announced on

twitter that vladimir putin is coming to the white house in the fall. >> say that again. >> you -- vladimir putin -- >> i heard it. >> yeah. yeah. >> okay. >> yeah. that's going to be special. >> special, indeed. meanwhile, president trump escalating his twitter campaign against the leading african-american congressman over the weekend. on saturday trump attacked maryland democrat elijah cummings calling his ma hearing a rat infested mess. he called cummings a racist and accusing him of doing a terrible job for people of his district. more now from cnn's boris sanchez at the white house. >> reporter: dave and christine,

president trump on sunday doubling down on his attacks on congressman elijah cummings and his district following up on tweets that he had previously sent on sunday bashing the congressman suggesting he should pay more attention to conditions in his district than those of migrant detention facilities along the southern border. the president called cummings a racist. now the white house is trying to spin the president's attacks. mick mulvaney suggested that the president often does offend people with this language, they are not based on race. the president was trying to fact check cummings on his descriptions of conditions at these border facilities. >> the president is attacking mr. cummings for things that are not right at the border. i was in congress for years. if i had homelessness in my

district like they do in san francisco and i spent all of my time in washington, d.c., and chasing down this mueller investigation, i'd get fired. >> two important points here, dave and christine. first, related to congressman cummings description of these border facilities, they line up with what we've heard from numerous outlets, that conditions at these facilities are horrendous. secondly, if you look at the president's tweets, he doesn't fact check cummings or dispute his descriptions. mick mulvaney with a bit much spin. the president's tweets were inaccurate. he is the most educated, affluent, african-american districts in the country. >> thank you, boris. the "baltimore sun" did not take kindly to president trump attacking their city as a rodent infested mess. the paper hit back in a scathing

beater to have rodents living in your city than to be one. >> here's how the candidates responded to elijah cummings. >> it's unbelievable that we have a president of the united states who attacks american cities, who attacks americans. our job is to bring people together to improve life for all not to have a racist president who attacks people because they are african-americans. >> this guy is the biggest identity politician that we have seen in the last 50 years and he engages in what's known as racial priming, basically using this language and taking actions to try to get people to move into their camps by racial and ethnic identity. that's how he thinks he won in 2016 and that's how he thinks he's going to win in 2020. >> this president is trying to

distract people from the larger reality of this country so he uses the racist appeal. there is a con man men tatality >> to be attacked issuing racist tweets is beyond insulting, it's disgusting. >> you'll hear the lineups all set. countdown is on. two big nights. ten candidates each night. tomorrow night an wednesday night live from detroit here on cnn. it's all about the fed this week as policy makers meet to decide on a rate cut. that decision could be the start of a summer rally in stocks. in june jerome powell said the fed would act to sustain the market. the s&p and dow have rallied 10.1% and 9.4%. does the economy need the boost though? at 10 years old this is the longest economic expansion in

history. with looser policy from the fed, the economy could go on. the economy slowed slightly in the second quarter growing at 2.1%. another way the economy could get a boost is ending the trade war with china. steve mnuchin and robert lightheizer traveled to china. it's about to get very interesting on the money front here. >> it looks like everything is being done to juice the economy ahead of an election. >> when you look at fiscal policy, you look at monetary policy, economy, 2.1% not as strong as many expected. still happening in there just fine. a lot of stimulus coming your way, zbreeks ahead, a new revelation in the case of two american teenagers accused of killing an italian police officer in rome. where police say the murder weapon was found next. here you go little guy.

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a knife believed to have been used in the fatal stabbing of an italian police officer was found hidden in the hotel room of two american teenagers suspected in the killing. court documents reveals the two teens accusing each other of the murder. we have more from italy. >> reporter: the investigation has taken a turn. photos leaked to the italian press show a disturbing situation at the time of the interrogation. one of the young american men is shown blindfolded. the police have confirmed to cnn that they have opened up a two-prong investigation into themselves. one of the questions they're trying to answer is who blindfolded that -- a young suspect and why. the other part of the investigation is who leaked the photo. meanwhile, in rome hundreds of people gathered to pay their last respects to this

35-year-old police officer during a public wake. we saw officers from various con continuing gents of the italian security forces. we saw people from the catholic church, nuns and priests and everyday citizens laying flowers, 3paying their respects in front of the casket of this young 35-year-old police officer who was a newlywed who had just returned to the force after his honeymoon. meanwhile though in the united states the friends and family of these suspects in this horrific crime are telling kind of a different story about the people that they knew. let's listen to what one of the neighbors had to say. >> i don't see him doing that. >> reporter: here in italy though of course the mood is very different. the focus right now is on mourning this lost police officer. on monday the funeral will be held in a small town near naples in the same church where he was married in early june.

>> such a tragic story there. thank you, barbie. the woman next in line to be puerto rico's governor does not want the job. the secretary of justice tweeting she does not want to be governor of the u.s. territory saying in spanish that she has no interest in occupying the position. vasquez was next in line for the job after ricardo rossello resigned. the man who was next in line resigned. beijing finally addressing the deepening crisis. in a news conference following eight weeks of furious protest, riot police firing tear gas and rubber bullets as the two sides fought battles in residential areas. we're live in hong kong with the latest. ivan, good morning. >> reporter: good morning, dave. it was a turbulent weekend in

parts of hong kong. two days of protests. the police did not give permits for demonstrators to march and yet many of them did and these devolved into violent clashes between riot police and demonstrators. both sides resorting to the use of force. scores of people hospitalized. dozens of people arrested as a result of this. the police denouncing the protesters for using violent tactics and the protesters denouncing the police for using violence as well. that has prompted the government of main land china to take an unprecedented step sending a spokesperson out to address the issue and the eight weeks of protests and increasing violence here in the streets of this island city. the central government in china

coming down very firmly in support of the awe tonneau miss -- semi-autonomous hong kong authorities and also denouncing what it describes as violent extremists and a violent minority and making it clear that the residents of hong kong have to choose between rule of law, basically following beijing, and following the protesters. that puts the hong kong authorities in a somewhat difficult position because they're trying to acknowledge that some of the protesters are, in fact, peaceful, that they're not using violence. meanwhile, there are warnings from business interests here, like the american chamber of commerce, calling for leadership, calling for some concessions from the hong kong authorities saying that all of this turmoil is putting at risk the reputation that the city had long enjoyed as a bastian of stability and prosperity in this part of asia. christine, dave.

>> that controversial extradition bill was shelved. was it ever killed or still lingering? >> reporter: it's still lingering. that's one of the complaints that the demonstrators have right now, though their list of complaints has grown as this summer of discontent has deteriorated further into violence. >> okay. ivan watson, live for us in hong kong this morning. thank you. 21 minutes after the hour. a 16-year-old boy just won $3 million playing fortnite. more on the teen champ next. with an ultra stretchy waistband and 360 fit that adapts to every wild move plus up to 12 hours of pampers protection... so anything your wild child does cruisers can too our best ever fit is new pampers cruisers 360 fit

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the fbi is on the hunt for the so-called pink lady bandit.

she's wanted for robbing four banks in pennsylvania, delaware and north carolina since july 20th. she has that nickname because of the distinctive pink hand bag she carried during at least two of those robberies. she's between 5'2" and 5'4", tall, 130 pounds. a $10,000 reward is being offered for information leading to her capture. now a picture typically hands the baseball over to the manager when he's being taken out of the game but there is nothing typical about trevor bower and what he did sunday. that's bower right before he was pulled from the game sunday at kansas city throwing the ball deep and gone over the center field wall. bower's meltdown came after he came up short calling it childish and unprofessional. he is an intense competitor and the frustration just built up. >> how's this for intense

competitor. a $3 million grand prize to the new fortnite champ. the first ever championship at arthur ashe stadium. this was the biggest ever player in an esports tournament. he finished with 59 points, a huge lead. that was harrison chang who took home 1.8 million. at 24 years old chang was one of the oldest players competing. >> kind of makes me think twice about yelling at my son for playing that game all day, all weekend. next here, the latest on our breaking news. three people killed as a gunman opens fire on a festival in gilroy, california. termites, feasting on homes 24/7.

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you this is cnn breaking news. >> welcome back to "early start." i'm christine romans. >> i'm dave briggs on a breaking news monday. 31 minutes past the hour. we start in gilroy, california, where a family food festival in

farm country turned into a deadly scene of terror. >> what's going on? what's going on? is that -- >> what the [ bleep ]'s going on? >> oh, my -- oh, they're shooting. >> a gunman firing round after round at the annual garlic festival in gilroy which is 80 miles south of san francisco. gilroy police say three people were killed in addition to the gunman and at least 11 were injured. chief scott smithee telling reporters overnight that officers confronted the shooter almost immediately. >> officers were in that area and engaged the suspect in less than a minute. the suspect was shot and killed. we had many, many officers in the park at the time that this

occurred, as we do any day during festival, which accounts for the very, very quick response time. >> smithee says witnesses reported a second attacker but he says it's unclear what role that person might have played. paul joins us live. what are you learning? >> reporter: well, good morning, dave. one thing we are learning and the police chief articulated this, a level of premeditation and calculation. now was this a lone gunman. the police chief repeatedly saying they. they went into a creek bed, walked along the creek and then cut through a fence in order to evade security at the park. and then he raised the issue of the possibility of an accomplice. let's listen. >> we believe based on witness statements that there was a second individual involved in some way, we just don't know in what way. >> reporter: so they're calling this an active investigation.

the peace and quiet of this gilroy festival just shattered. gilroy calls itself the garlic capitol of the world. routinely some 80 to 100,000 people will attend this event over a weekend. we now understand that one of the victims, a 6-year-old boy. back to you now, dave. >> heartbreaking. paul live for us in la this morning. thank you. thousands were still enjoying the gilroy garlic fefstive val as it wrapped up when the shots rang out triggering panic, confusion and a desperate run for cover. the first man you'll hear was a stage hand for the final musical act of the day. >> the bullets were hitting the ground. you could see them going up. that's when i called out, it's a real gun. the crew and the band ran and hid underneath the stage. we were hiding underneath the stage. would he could hear more gun fire happening. eventually some gunfire happened and bullets were hitting the

stage that we were hiding underneath. eventually it stopped. there were people calling out looking for people. eventually we came out and i could see there was someone down and they were performing cpr on him and later i learned it was the gunman. >> as soon as the gunfire started everybody scattered. people were yelling for their kids. and, yeah, you just heard this -- >> reporter: so you heard rapid fire? >> like a semi-automatic going off. really close, too. people screaming and hiding and ducking. >> and then i was at the phone booth, two shots rang out. at the same time the music started. i thought it was like an opening act for the concert, but after a few seconds there were so many shots and i saw people falling down, kids falling down. i had to jump over the middle of the kids. one bullet passed me very closely and it hit our friend's

chair. >> that's awful. gilroy police still looking for the second possible suspect. they are asking witnesses or anyone who took pictures or recorded a video of the attack to call a tip line. that number there on your screen. to politics now. a national intelligence director dan coates is stepping down next month. president trump making the announcement on twitter sunday. he plans to nominate texas republican congressman john radcliffe to replace coates. radcliffe aggressively questioned counsel robert mueller last week in defense of the president. >> i agree with the chairman this morning when he said donald trump is not above the law. he's not. but he damn sure shouldn't be below the law, which is where volume two of this report puts him. >> the president thanked dan coates for his great service to the country but truth be told, the two were not always on the same page. coates strongly defended u.s. intelligence agencies and their

assessment that russia interfered in the 2016 election. he was famously caught off guard by news of a trump/putin meeting. >> i do want to say, we have some breaking news. the white house has announced on twitter that vladimir putin is coming to the white house in the fall. >> say that again. >> you -- vladimir putin coming -- >> did i hear new. >> yeah. yeah. >> okay. >> yeah. >> that's going to be special. >> special reaction there. coates' resignation effective august 15th. president trump escalating his twitter campaign against a leading african-american congressman over the weekend. on saturday trump attacked maryland democrat elijah cummings calling his majority district a disgusting rat and

rodent infested mess. that draw accusations of racism. he called cummings a risist and accused him of being a racist. >> dave and christine, president trump on sunday doubling down on his attacks of congressman elijah cummings and his district following up on tweets that he did on sunday bashing him saying he should pay more attention on his district than those at migrant detention centers. the president called cummings a racist. now the white house is trying to spin the president's attacks and sort of polish them. acting chief of staff mic mulvaney was on a talk show suggesting that the president often does offend people with his language but the attacks are not based on race. mulvaney making the point that he was trying to fact chuck cummings on the conditions of

the facilities. >> the president is attacking mr. cummings for saying things that are not true about the border. it's right. look, i was in congress for six years. if i had poverty in my district, if i had crime in my district like they have in chicago, if i had homelessness in my district like they have in san francisco and i spent all of my time in washington, d.c., chasing down this mueller investigation, this bizarre impeachment crusade, i'd get fired. i think the president is right to raise that. it has absolutely zero to do with race. >> two important points here, dave and christine. first, related to congressman border facilities, they line up with what we've heard from numerous outlets, with cnn's own reporting that conditions at these facilities are horrendous. second, the president doesn't fact check cummings. mulvaney had a bit of a spin there. the district that cummings represents is the most educated, affluent, predominantly

african-american in the country. dave and christine. >> boris sanchez, thank you. the "baltimore sun" did not take kindly to them attacking the city. they hit back saying, better to have some vermin living in your neighborhood than to be one. the president has bragged this is the best economy in history. the democrats running to take his job, they have to prove otherwise. >> reporter: it's the economy, stupid. a strong economy is a gift for any sitting president going into an election year. >> we have the hottest economy anywhere on earth. we have the number one economy in the world. we're now the economic envy of the entire world. >> reporter: it's an advantage for president trump. the lowest jobless rate in nearly half a century. the stock market near record highs. but the democratic candidates for president are asking just

who is the trump economy working for? >> he has done nothing to help working families in america. >> communities were as if this economy never happened. >> ask people who work in restaurants how that economy came up for them. >> reporter: they frame the trump economy as great for big corporations and the wealthiest americans. >> i will repeal the tax bill that benefits the top 1 pers perce -- 1%. >> it is wall street's turn to help rebuild the american middle class. >> reporter: senators bernie sanders and elizabeth warren want taxes on the rich. >> an ultra millionaire's tax. it's 2 cents on every dollar of the great fortunes above 50 million. >> reporter: crackdown on wall street. >> we are going to break those huge banks up. >> reporter: and raib in big tech. >> it is time to break up america's tech giants.

>> reporter: most of the democratic candidates want to raise corporate taxes, tax investment profit, some even favor putting a fee on every wall street trade. >> frankly, this economy is not working for working people. >> reporter: democrats' message, that in the trump economy own more wealth than the bottom 90. democrats propose raising minimum wage, implementing fairer housing policies. senator cory booker wants to give them a bond. the median white family had ten times the wealth of the median black family. >> it's time we target the issue of wealth equally. >> reporter: senator kamala harris wants to bring attention to the gender gap. >> paying people equally for equal work. >> reporter: while they want to

revise rural america. >> it's integral. >> reporter: then there's free college, first popularized by bernie sanders in 2016. critical that many americans go into debt to earn a degree. >> frankly, that is crazy. we want you to get the best education you can without having to pay off outrageous levels of debt. >> reporter: this time around all the candidates have some policy for affo for theable college. canceling all debt, that's a far stretch. >> no, i'm not for free college for all. >> i don't believe it makes sense to ask working class families to subsidize even the children of billionaires. >> warren has proposed wiping up student loan debt up to $50,000. >> everyone should be able to get an education without being crushed by debt. >> bottom line, trump's economy

isn't helping all-americans. the question is can they convince voters the same. good stuff. you'll hear much more during the democratic presidential debates. two big nights, ten candidates each night. tomorrow night and wednesday night live from detroit right here on cnn. after eight weeks of furious demonstrations, the chinese government finally responds to the protesters in hong kong. we'll go live to beijing next.

4:48 eastern time. beijing finally addressing the deepening crisis in hong kong. in a news conference today following eight weeks of furious protests, riot police firing tear gas and rubber bullets at protesters as the two sides fought battles in residential areas. matt rivers live for us in beijing. matt, good morning. what are you hearing?

>> reporter: yeah, good morning. this is the first time that we've heard at least on camera from officials with the hong kong affairs office here in beijing. that would be the department that is tasked with dealing with hong kong affairs, and it's the first time we've heard them come out on camera in a relatively forceful way. they have expressed support for the hong kong government in the past. this is the first time they came out in public. they're calling the protests illegal saying they're being spurred on by violent protesters determined to commit illegal acts. he reiterated support for the police and interestingly he reiterated support for the chief executive of hong kong, that would be carrie lam who protesters have asked to step down and resign. she hasn't. that has led to a lot of the violence we've seen. this is beijing lending its support to the hong kong government. we ask the question because there's a fear that beijing could deploy troops to quell the

protests, deploy the chinese army. it would be unprecedented. we specifically asked if beijing is going to be doing that. they didn't answer saying you can look aup the basic law for yourselves which would allow troops on the streets of hong kong but they did not confirm that is in the cards. >> only adding to the fears that beijing could send troops there. all right. matt rivers, great reporting for us in beijing, thanks. the woman next in line to be puerto rico's governor does not want the job. wanda vasquez says she does not want to be governor. saying in spanish, she has no interest in occupying the position. she was next in line for the job after embattled lead jerry card doe rossello announced his position. normally the secretary of state would be next in line but the man who was secretary of state resigned amid the same group chat scandal that led to

protests and rossello's resignation. stores that don't sell anything. how will that help traditional retailers take on amazon? cnn business has the story next. sun care is self care. i used to not love wearing an spf just because i felt like it was so oily and greasy. but with olay regenerist whip spf 25, it's so lightweight. i love it. i'm busy philipps, and i'm fearless to face anything. termites, we're on the move.24/7. roger. hey rick, all good? oh yeah, we're good. we're good. termites never stop trying to get in, we never stop working to keep them out. terminix. defenders of home.

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here, hello! starts with -hi!mple... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. all right. in baseball pitcher typically hands the ball over to the manager when he is taken out of the game but there is nothing typical about the cleveland indian's trevor bauer, because that is what he did before he was pulled from the game on sunday. he turned and fired the baseball

over the center field wall. it was gone. bauer's meltdown came after he gave up seven runs in five innings. he apologized and called it childish, and he said he was frustrated. >> your world champion! >> and a $3 million grand prize to the new fortnite champ, kyle buga giersdorf. the first ever championship at new york's arthur ashe stadium home of the u.s. open. it was also the biggest ever payout to a single player in an esports tournament. he finished first and harrison chang came in second at 24

hours. >> all of those lost hours -- >> time well spent. >> investment somehow? let's get a check on cnn business. first a look at global stocks. asian stocks closed lower. european stocks opened lower. hang seng dropped. on wall street to start the new trading week, looks like absolutely undecided. stocks finished the week higher after friday's second quarter gdp report showed the economy grew at 2.1%. the dow closed 52 points. the nasdaq closed at all-time highs beating records set wednesday. the s&p 500 finished up .7. all time high of 3026. the nasdaq closed up 1.1%. the record there. the fed, the policy makers need to decide on a rate cut. that will be the first rate cut since 2008. traditional brick and mortar stores are looking for ways to

create distinctive services. that means stores that don't actually sell anything. walmart opened up a walmart pickup point outside of chicago earlier this month. customers drive up to the site, an employee loads up their trunk with their order. nordstrom has been testing three local hubs in the los angeles area with plans to open one in new york city. the locations are another way retailers are trying to capitalize on the pickup especially among younger and wealthier shoppers. >> must take your place in the circle of life. >> disney has set the record for the highest grossing year for a studio ever. by the way, only in july they've already set the record for the best year. brought in a record 7.67 billion to date. beating the record it set in 2016. house of mouse already has three films that have made a billion

bucks. avengers end game, captain marvell, toy story 4 and aladdin could make it 5. those films have made $900 million worldwide. there are more films coming out later this year. >> they will line up with more films next year and it will keep rolling. thanks to all of our international viewers for joining us. have a great rest of your monday. for the rest of our viewers, "early start" continues right now. this is cnn breaking news. >> good morning, everyone. welcome to "early start." i'm christine romans. >> i'm dave briggs. it is monday, july 29th, 5 a.m. in the east, 2 a.m. in gilroy, california, where we begin this morning with breaking news. a family food fest in california farm country turned into a deadly scene of terror. >> what's going on? what's going on?

>> is that -- >> what the [ bleep ]'s going on? >> oh, shooting. >> a gunman firing round after round at the annual garlic festival that's in gilroy about 80 miles south of san francisco. gilroy police say three people were killed in addition to the gunman. and at least 11 people were injured. chief scott smithee telling reporters overnight that officers confronted the shooter almost immediately. >> officers were in that area and engaged the suspect in less than a minute. the suspect was shot and killed. we had many, many officers in the park at the time that this occurred, as we do any day during