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Early Start with John Berman and Zoraida Sambolin

Michael Slam Into Florida as Category 4 Hurricane; Trump Call Jamal Khashoggi's Disappearance as a "Bad Situation"; Aired 4:30-5a ET

Aired October 11, 2018 - 04:30   ET

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


(COMMERCIAL BREAK)

[04:32:03] CHRISTINE ROMANS, CNN ANCHOR: A deadly storm dropping devastating rain now on Georgia after tearing through the Florida Panhandle. Two people killed, including one child. Where that storm is headed next.

DAVE BRIGGS, CNN ANCHOR: And growing pressure on Saudi Arabia to explain the disappearance of a "Washington Post" journalist. One senator warning significant wrath from the United States. We are live in Istanbul.

ROMANS: And this, the Dow plunging more than 800 points. The third worst point selloff in history. How the president explains or who he blames for the drop.

Welcome back to EARLY START. I'm Christine Romans.

BRIGGS: I'm Dave Briggs. A looming battle with the Fed. 4:32 Eastern Time. We start with more of our breaking news coverage this morning.

Michael now tearing its way across Georgia, headed for South Carolina. Still a very dangerous tropical storm. At this hour officials in three states say more than half a million people are without power. Nearly 6700 people are still in shelters. Two people died in separate incidents. A Florida man killed and an 11-year-old boy in Georgia, killed when trees fell on their homes.

No telling what first responders will find today. They are beginning to search through homes as conditions improve.

ROMANS: Yes. Just about two hours until sunrise.

Michael made landfall near Mexico Beach, Florida, with winds in excess of 140 miles an hour. The stunning video, look at that, just in to CNN. This is the sudden calm in the eye of the hurricane. And look at that spectacularly defined eye wall.

The storm hit just shy of a category five, enough to launched rooftops across the street. It was the strongest hurricane to hit the continental U.S. since Andrew in 1992. The strongest to hit the Panhandle in recorded history. Michael leaving devastation in its wake. Look at this drone footage

of a school gym in Panama City. Just peeled back. Same story with this nearby shopping mall which locals say was recently remodeled. And this boat warehouse in Niceville, Florida, a total loss.

BRIGGS: Power lines and transformers down across the region. It may be weeks before power is restored everywhere. But for proof of this awesome power, check out this. Train blown completely off the rails in Panama City. Staggering.

CNN's Derek Van Dam was in the thick of it all. He joins us live from Apalachicola with the latest.

Derek, good morning.

DEREK VAN DAM, AMS METEOROLOGIST: Hey, good morning, Dave. We witnessed the full power of storm surge here in Apalachicola and it's on display behind me. One feet -- one foot of moving water can pick up a large vehicle and rush it down the road. Look what seven feet of storm surge can do. Can overturn semis.

Let me give you a little frame of reference. Just to my right there is the high water line. We are near the Apalachicola River and behind me there are all kinds of fishing industries. And that is actually oyster shells. And that debris line right on there is where the high water mark actually occurred. So there was officially seven feet in this area.

[04:35:05] We also witnessed submerged vehicles. Submerged SUVs. One of which was picked up by the receding storm surge and brought about two to three blocks behind me. There it is. That white truck. We saw that in a live shot about 12 hours ago during the peak of Hurricane Michael. So lots to talk about.

What you can't see directly behind me is Highway 98. That's the major thoroughfare through and around the panhandle of Florida. And many of the bridges and the causeways connecting Apalachicola to Tallahassee and Panama City are completely closed. That's according to the Franklin County emergency officials. The power is out. Communications are completely out across this area making it very difficult for any of the residents who decided to, well, ride out the storm to perhaps get in contact with emergency officials.

We're reporting from Apalachicola. I'm Derek Van Dam. Back to you, Dave.

BRIGGS: OK. Derek, thank you.

ROMANS: All right, overnight Michael punished Georgia with torrential rain, destructive winds. It arrived as a category three hurricane, weakened to a category one as it moved northeast across the state. Making it the most powerful storm to hit the area in 120 years.

Our meteorologist Pedram Javaheri tracking Michael live from the CNN weather center as it moves now into the Carolinas.

What can folks expect today?

PEDRAM JAVAHERI, AMS METEOROLOGIST: Yes, Christine, we're going to see a tropical storm force winds throughout much of today. We'll see heavy rainfall continue across this region and this storm system, 13 plus hours after landfall, still maintaining itself as a tropical storm, hurricane force wind gusts being felt across portions of Georgia. It is now officially crossing right into South Carolina at this hour.

And we do have about 23 million people underneath tropical storm force warnings. Meaning we'll expect those winds to be roughly from, say, 35 miles per hour up to around 60 miles per hour throughout much of today. With it of course is powerful winds across this region, heavy rainfall as well. We know schools across much of South Carolina have already canceled classes for today as a result of the system.

And we do have tornado watches to tell you about from Columbia out there towards Charleston, South Carolina. As the storm rotates across this region, interacts with the terrain across this region, spins up generally smaller tornadoes. But really the last thing you want to see especially when it's dark out and you have a storm like this moving through and spawning tornadoes as it does as well.

So certainly going to watch this and watch the heavy rainfall as it pushes through this region. Very quick moving system. Very different from what we saw from Florence a couple of weeks ago. This is not going to linger around much. And in fact you take a look at how things played out. Quick in every way and sense of the word. Going in from a category one on Monday afternoon to a healthy category four. Just two miles per hour shy of what would be a category five.

And think about this, as far as hurricanes are concerned, in fact we know that this particular storm comes in as the third strongest -- third lowest central pressure at landfall of the 292 hurricanes that have impacted the United States since 1851. This comes in number three. Stronger than Katrina at landfall when it comes to central pressure. Stronger than Andrew at landfall in association with the central pressure.

So again really talks about the ferocity of this storm system as it moves ashore and still maintained cat three status into the state of Georgia. The type that happens since 1898. And by the way, the state of Georgia's coastline of course is on the Atlantic side. This storm so strong it crossed from the gulf side over land and still had major hurricane status in Georgia.

ROMANS: Amazing. All right. Pedram, thank you so much for that.

BRIGGS: Still so well-defined. OK.

The National Weather Service working this morning to prevent Tropical Storm Michael from sneaking up behind folks in the Carolinas. Jessica Fieux is a senior forecaster at the National Weather Service. She joins us live via Skype from the weather service Tallahassee office.

Thank you for all you have been doing and warning people. What has just come and what is still to come? Let's look back real quickly about what conditions do you think made this such a devastating storm before we look forward?

JESSICA FIEUX, SENIOR FORECASTER, NATIONAL WEATHER SERVICE: With the strong winds and the catastrophic storm surge, that brought us devastating effects to the coastlines and all the way interior into southwest Georgia. Strong winds and life threatening storm surge had a significant impact.

ROMANS: It was remarkable to see both the pressure dropping and the wind speeds strengthening and the eye so defined all the way up until landfall. Almost just the perfect mix of fuel and factors to keep this very strong.

Now what are you telling people as this tropical storm is moving into the Carolinas?

FIEUX: So as it moves into the Carolinas, we want to make sure that you're listening to your local forecasters and your emergency managers. There's still going to be strong winds that can bring down trees with the storm. Obviously we're watching the rainfall amount especially in areas that are already saturated from rainfall.

BRIGGS: And checking your Twitter feed here this morning. A lot of warnings regarding generator use, regarding those folks waking up in Florida this morning. Power lines down across the region. 200 trees blocking roads.

[04:40:02] What is a primary concern for people in Florida where that storm hit and what do they need to know before they head out this morning?

FIEUX: So right now it's recovery. At this point we want you to stay home. Please don't be on the roads. It's going to be a lot easier for the emergency managers and power companies to restore power if folks aren't on the roadway. We want to make sure that folks are staying home, if you don't have power, go use the generator. Make sure that you're using that outside away from any windows or that carbon monoxide could get inside.

So we want to make sure that people are using safety with that. Make sure that you are wearing protective shoes when you are outside going through debris. And really listen to your emergency managers. And do not return to areas until emergency managers say that you can do so.

ROMANS: Yes. You can't -- walking and driving through water very bad idea. You don't know what's underneath the surface. And once the storm passes, Jessica, I mean, sadly, that's when we get injuries and fatalities once people think that all is clear, right?

FIEUX: Exactly. And we're still assessing the situation at this point. We will send out survey teams over the next couple of days to survey the structures and see what kind of damage we have there and then also in terms of the storm surge. We need to see just how high that inundation was.

ROMANS: All right. Be patient, everybody. Be patient. It's a process.

BRIGGS: And to Jessica's point, stay off the roads this morning.

Jessica Fieux from the National Weather Service, thank you for all of your work and thanks for being with us this morning.

ROMANS: Yes. Everyone worked really hard the last few days.

BRIGGS: They have not left. I know that.

ROMANS: All right. President Trump vowing to get to the bottom of what happened to that Saudi journalist who vanished in Istanbul more than a week ago. We're piecing together the frightening timeline leading up to his disappearance next.

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[04:45:54] BRIGGS: President Trump insisting he'll get to the bottom of Jamal Khashoggi's disappearance. The Saudi journalist who writes for "The Washington Post" and lived in the United States vanishing after entering the Saudi consulate in Istanbul. He's been missing for more than a week now.

The president claiming he has contacted the highest levels of the Saudi government to get answers.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: Do you hold the Saudi government responsible?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, I have to find out who did it, but people saw him go in but they didn't see him come out as they understand it. And we're going to take a very serious look at it. It's a terrible thing.

(END VIDEO CLIP)

BRIGGS: A bipartisan group of more than 20 senators sent a letter to President Trump Wednesday triggering an investigation into his disappearance.

Nic Robertson with the latest on this live from Istanbul. Nic has written a piece for CNN.com. We encourage you all to read it.

Nic, where are we headed here? And what is Turkey saying?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It looks like we're headed to a standoff between Turkey and Saudi Arabia right now. And Vice President Mike Pence said the world needs to have answers. Secretary of State Mike Pompeo said that he contacted counterparts in Saudi Arabia saying that they needed to support an investigation.

Two days ago we seem to be at that place. The Saudi saying Turkish officials could get access to the consulate. The working theory for Turkish officials is that Khashoggi went inside the consulate then there was a premeditated murder. How did the Saudis deal with his body after that? That's one of their key questions.

So key to all of that, of course, was getting access to the consulate which Saudis said they could have. Now the Saudis are apparently saying no. The Turkish authorities here are saying that the Saudi are not cooperating with this investigation. Certainly we haven't seen forensic Turkish investigators going into the consulate building here behind me. So that's where things stand.

A growing standoff at the level of investigation which the White House now, the State Department all saying that Saudi Arabia should be supporting. So this is going to put President Trump in a very tricky position. He's got a strong ally in Saudi Arabia, important economically, important to U.S. foreign policy in the Middle East. But now he may have to get tough on Mohammed Bin Salman, the crown prince, who essentially lead that country -- Dave.

BRIGGS: Yes. The president was asked if the Saudis were responsible last night by Shannon Bream of FOX News, he said it would not be a good thing at all. The president often says worst things about Justin Trudeau. Why do you think the tepid response from President Trump and how important is that?

ROBERTSON: You know, I don't think even the Saudis or maybe even the Turkish authorities here really figured how big this story was going to become. Jamal Khashoggi was world renowned for his opinions. He's very outspoken about Saudi Arabia that put him on Saudi Arabia's radar. But not so many other people. But his disappearance like this under so much scrutiny is going to be very difficult for the Saudis to get around.

They are painted into a corner on this one. And because President Trump is so closely aligned to them, it puts him in a very, very tough position. So I think it's caught everyone by surprise how big -- how big an issue this has become. And the Turkish authorities are really piling on the pressure because they believe, at least they have a very strong theory about what happened to him, and they seem to have a lot of evidence, although they haven't made it all public yet. Drip fed some to the media to support their claims.

So there's no -- there doesn't seem to be the possibility at the moment to -- for anyone to back out of this, neither President Trump on criticism of Saudi, neither the Saudis to cover their tracks, or Turkey to dial back an escalating tension with Saudi.

BRIGGS: CNN will stay on it. Great reporting from Nic Robertson this morning. Thank you.

ROMANS: All right. 49 minutes past the hour. President Trump bashing Democrats in an op-ed calling their Medicare for all plan Medicare for none. Health care of course a big platform for the Democrats ahead of midterms including a proposal called Medicare for All. First made popular by Senator Bernie Sanders, the plan replaces private insurances by phasing all Americans into a government-run system.

[04:50:08] But in the "USA Today" op-ed, Trump claims this. Democrats would gut Medicare with their planned government takeover of American health care leading to a rationing of health care. Trump pointed to a hefty price tag, $32 trillion over the first 10 years. However that comes from a report funded by the conservative Koch brothers. And the Dems point out that same report shows Americans will save $2 trillion.

Trump also said he is protecting pre-existing conditions. However, the administration decided not to defend a lawsuit filed against Obamacare that would kill protections for pre-existing conditions. So his own court actions show the president not supporting pre-existing conditions.

Minority leader Chuck Schumer struck back telling America or telling Trump, rather, the American people deserve better than smears and sabotage.

Entitlements are regular battle zones between the parties, often accusing one another of working to destroy them.

What's really clear here I think that you can see a White House that's trying to blunt or neuter what is a message that seems to be resonating heading into the midterms.

BRIGGS: Yes.

ROMANS: There are people in some of these districts who are very concerned still about health care and their choices there.

BRIGGS: Less than four weeks until the midterms. That will emerge as an issue down the stretch.

Coming up, Melania Trump weighing in on sexual misconduct allegations during this Me Too Movement.

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MELANIA TRUMP, FIRST LADY OF THE UNITED STATES: We need to have a really hard evidence that, you know, if you are accused of something, show the evidence.

(END VIDEO CLIP)

BRIGGS: How her husband misread the movement at his rally last night.

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[04:56:15] BRIGGS: A not guilty plea in the deadly limousine crash that claimed 20 lives in upstate New York last weekend. Nauman Hussain is facing criminally negligent homicide charges. He was forced to surrender his passport last night after posting a $150,000 bond. Hussain's father Shahed owns the limo company involved in the wreck. Governor Andrew Cuomo says the vehicle failed the state inspection and should not have been in service. He adds the driver did not have the proper license to operate the vehicle.

ROMANS: A New York man charged with building a 200-pound bomb in his basement. Police say he planned to detonate it on election day on Washington's National Mall. 56-year-old Paul Rosenfeld faces one count of unlawfully manufacturing a destructive device and one count of interstate transportation and receipt of an explosive. Each charge has a maximum sentence of 10 years in prison.

A series of letters and text messages showed Rosenfeld intended to blow himself up to bring attention to a political ideology called sortition which advocates the random selection of government officials instead of elections.

BRIGGS: President Trump taking a new bewildering swing at the Me Too Movement at a rally last night in Pennsylvania. He wanted to say the state was like the woman who got away for most Republicans until he won it in 2016. Listen.

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TRUMP: I used an expression. You know, there's an expression but under the rules of Me Too, I'm not allowed to use that expression anymore. Can't do it. It's the person that got away. See, it feels a little different. Pennsylvania -- he says do it anyway.

(END VIDEO CLIP)

ROMANS: I thought it was the one that got away. And I thought women and men both use that expression.

BRIGGS: Me too.

ROMANS: Just a few hours earlier, ABC released an interview with First Lady Melania Trump. She offered a lukewarm endorsement of the Me Too Movement.

(BEGIN VIDEO CLIP)

M. TRUMP: I do stand with women. But we need to -- we need to show the evidence. You cannot just say to somebody I was, you know, sexual assaulted or you did that to me or -- because sometimes the media goes too far.

(END VIDEO CLIP)

ROMANS: During the 2016 campaign, at least 13 women accused Donald Trump of sexual misconduct. The White House calls the allegations old news that has already been litigated.

Let's get a check on CNN business this morning. A brutal day on Wall Street. U.S. stocks had their worst drop in months. All three major averages lost at least 3 percent. That's a big one-day move, folks. Dow plunged more than 800 points. That makes it the third worst point decline in history.

The selling has spread around the world. Shanghai down more than 5 percent. European stock markets have opened lower. U.S. futures suggest more selling in the U.S. when the U.S. opens up in about 4.5 hours. Now it started with tech stocks. Big names like Netflix, Amazon,

Apple. Those three alone lost nearly $120 billion of market value. And October has been rough. Investors are worried about the U.S.- China trade war, slowing growth next year and they're worried about higher interest rates. So watch this space. You could have another rough morning.

Landmark health care merger is inches away from the finish line. The Justice Department approved CVS' plan to buy Aetna. Now it just needs a judge's approval. It's a $69 billion deal, the largest health insurance merger ever and it will upend the health care industry. CVS is a huge drug store chain. 9700 locations. Aetna is one of the largest health insurers.

Now advocacy groups worry consolidation could mean reduced competition, harming consumers, but regulators say the merger could Americans lowering healthcare costs and improving the quality of care. So watch this space.

You may soon pay more for stamps. That's right. The U.S. Postal Service is asking for the biggest price jump on stamps in history. Raising the price from 50 to 55 cents. A record hike. USPS says this will provide much needed revenue. President has criticized the postal service for losing a fortune by not charging higher shipping rates for online retailers like Amazon. But the post office actually makes money on shipping.