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Early Start with John Berman and Zoraida Sambolin

Trump Under Pressure; Dozens Still Missing; SEARS Bankrupt, Closing More Stores; Royal Couple Expecting; Senator, Caught On Video; Mexico Beach In Ruins. Aired 4-4:30a ET

Aired October 15, 2018 - 04:00   ET

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

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[04:00:00] DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're going to get to the bottom of it and there will be severe punishment.

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CHRISTINE ROMANS, EARLY START SHOW CO-HOST: President Trump under pressure to take action after the suspected murder of a Saudi journalist.

DAVE BRIGGS, EARLY START SHOW CO-HOST: And the President and the first lady head to Florida today where dozens are still unaccounted for after hurricane Michael.

ROMANS: SEARS just filed for bankruptcy protection and announced the closing of definitely more stores, a dramatic decline of what used to be America's largest retailer.

BRIGGS: And some breaking news this Monday morning out of Kensington palace. Prince Harry and Meghan Markle are expecting a baby. Christine Romans, it is celebrating as we speak, you are a royal watcher.

ROMANS: I like baby stories. I'm more of a baby watcher than a royal watcher.

BRIGGS: Nice to have some baby news. Good morning everyone. Welcome to "Early Start." I'm Dave Briggs.

ROMANS: I'm Christine Romans it is Monday, October 15, it is 4:00 a.m. in the East. Let's begin with the President and the Saudis trading threats this weekend over the disappearance of journalist Jamal Khashoggi. The President telling "60 minutes" the Saudis will face quote, severe punishment if they killed Khashoggi during his visit to a Saudi consulate in Turkey and a Saudi own news channel publishing an op-ed saying that the U.S. faces an economic bloodbath if it imposes sanctions on Saudi Arabia. For the latest developments let's bring in diplomatic -- international diplomatic editor Nic Robertson. He is live in Istanbul for us. Nic?

NIC ROBERTSON, SENIOR INTERNATIONAL CNN CORRESPONDENT: Yes. A mixed messages coming from Riyadh for sure. Not that article you are talking about written not just by anyone of that station, the general manager, that just doesn't happen without somebody senior taking the box and saying, it's OK, we had a statement from Saudi officials yesterday saying that they would double down on any action taken against them in a very clear shot across President Trump's vows there about considering some kind of action against Saudi Arabia. Also a warning for others in the region, perhaps for Turkey as well.

And then we had a tweet out of the Saudi embassy in Washington, D.C., seeming to roll back all that rhetoric. Saying that, actually, Saudi Arabia was grateful for the United States for sort of pausing and waiting to see what would come out of the investigation. The investigation itself completely and utterly stalled. The king of Saudi Arabia had a phone call with President of Turkey, Erdogan yesterday, but nothing really different.

They said that they would form a working group to allow Turkish investigators to follow through with their investigation, but you know what? We heard that on Thursday last week. And the beginning of last week, almost a week ago now, the Saudis said that the Turkish investigators could get into the consulate which is what they had been demanding. Nothing has come of that. We seem to be in a holding pattern here where everyone in the region of Saudis, allies are lining up in support of them. And international community, Britain, France, Germany, the United States, the E.U., the U.N., all saying that Saudi needs to open up and allow a thorough, clear investigation. Christine?

ROMANS: Through those doors behind you, 13 days ago he walked in and has not been seen since. All right, Nic Robertson, thank you so much.

BRIGGS: President Trump avoiding a firm stand on Saudi Arabia's role in the disappearance of Jamal Khashoggi, but in an interview with "60 minutes" the president said nobody knows whether Crown Prince Bin Salman ordered Khashoggi's murder.

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TRUMP: It is being investigated. It is being looked at very, very strongly. And we would be very upset and angry if that were the case. As of this moment they deny it. And deny it vehemently. Could it be them, yes?

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BRIGGS: CNN's Boris Sanchez with more this morning from the White House.

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BORIS SANCHEZ, CNN NEWSROOM HOST: Christine and Dave, President Trump has not explicitly pointed the finger at Saudi Arabia over the disappearance of "Washington Post" columnist Jamal Khashoggi. Instead, President Trump saying the White House will get to the bottom of the disappearance of that journalist. The President though has chafed at a bipartisan group of Senators who has suggested that Congress should intervene and get involved, potentially by blocking a hundred billion dollar arms deal that President Trump secured with Saudi Arabia shortly after taking office.

The President suggesting they would likely hurt the American economy and jobs more than it would hurt Saudi Arabia or send a message to them. The President spoke with "60 minutes" on Sunday night suggesting that if the White House found that Saudi Arabia was responsible there would be a steep price to pay. Listen to this.

TRUMP: There's a lot at stake and maybe especially so because this man was a reporter. There's something -- you'll be surprised to hear me say that, there's something really terrible and disgusting about that if that were the case. So we are going to have to see. We're going to get to the bottom of it. And there will be severe punishment.

SANCHEZ: Now, the hesitation from President Trump to really condemn the Saudi Arabians could be seen as an indication of how much this administration has staked on Saudi Arabia and the future of the Middle East.

[04:05:05] We know that this administration believes very strongly that Crown Prince Mohammed Bin Salman is intricate -- an intricate part of the future of the Middle East, not only with countering Iranian aggression, but also any potential Israeli- Palestinian peace plan moving forward. Dave and Christine?

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ROMANS: Boris, thank you for that.

Talk of sanctions hitting Saudi Arabia's stock market. Riyadh's main index fell 7 percent Sunday wiping out billions of dollars in market value for top Saudi companies. The stocks have dropped as much as 9 percent since Jamal Khashoggi disappeared October 2nd.

More than two years study Arabia has been working to modernized and diversify their economy away from just oil, but Khashoggi's disappearance is prompting some big-name business partners to cut ties. Richard Branson suspended billion dollar investment talks and many executives are pulling out of that high profile Saudi investments conference dubbed Davos in the desert. The future investments initiative is called later this month, but many international media partners have already pulled sponsorships including The New York Times, Bloomberg, CNBC, and CNN, now JPMorgan Chase CEO Jamie Dimon will no longer attend. A JPMorgan spokesman did not say why and Ford executive chairman Bill Ford will no longer go to scheduling, but the Treasury Secretary, Steve Mnuchin so plans to be there, at least for now. A treasury spokesperson says officials will be evaluating the information, it comes out this week.

BRIGGS: President Trump admits Vladimir Putin is probably involved in assassinations and poisonings and he doesn't seem too worried about it. In an interview with "60 minutes" the resident was asked why he was so hesitant to criticize the Russian leader. In this exchange with Lesley Stahl, Mr. Trump apparently suggesting Putin's conduct is of less concern, because the victims are not in the United States.

LESLEY STAHL, 60 MINUTES, CORRESPONDENT: Do you agree that Vladimir Putin is involved in assassinations, in poisonings?

TRUMP: Probably, he is. Yes, probably.

STAHL: Probably?

TRUMP: Probably, but I rely on them. It's not in our country.

STAHL: But why not -- they shouldn't do it. This is a terrible thing.

TRUMP: Of course they shouldn't do it.

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BRIGGS: When it comes to interfering in U.S. elections, President Trump says he believes China is a bigger problem than Russia.

ROMANS: President Trump is also defending his speech at a Mississippi rally that featured him mocking Christine Blasey Ford. Listen to the president justify his attacks on Justice Brett Kavanaugh's accuser.

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TRUMP: Had I not made that speech we would not have won. I am just saying, she didn't seem to know anything.

UNIDENTIFIED FEMALE: No --

TRUMP: And trying to destroy a life of a man who has been extraordinary.

UNIDENTIFIED FEMALE: Why did you have to make fun of her?

TRUMP: I didn't really make fun.

UNIDENTIFIED FEMALE: Professor Blasey Ford got before the Senate and was asked, what's the worst moment? And she said when the two boys laughed at me, at my expense. And then I watched you mimic her and thousands of people were laughing at her. Do you think you treated her with great respect?

TRUMP: I think so, yes, I do.

UNIDENTIFIED FEMALE: But you seem to be saying that she lied.

TRUMP: You know what? I'm not going to get into it, because we won. It doesn't matter.

UNIDENTIFIED FEMALE: Well --

TRUMP: We won.

(END VIDEO CLIP) ROMANS: Senators on both sides of the aisle roundly criticized the

President for mocking Dr. Ford at that rally.

BRIGGS: Hillary Clinton's speaking out rejecting critics who claim her husband should have resigned the presidency during the Monica Lewinsky scandal. In an interview with CBS, the former Secretary of State insisted she played no role in criticizing the character of her husband's accusers and says she takes full responsibility for her actions. Listen to Secretary Clinton's side step the question when asked if her husband's transgressions with an intern should have cost him his job.

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UNIDENTIFIED MALE: In retrospect, do you think Bill should have resigned in the wake of the Monica Lewinsky scandal?

HILLARY CLINTON, FORMER SECRETARY OF STATE: Absolutely not.

UNIDENTIFIED MALE: It wasn't an abuse of power?

CLINTON: No.

UNIDENTIFIED MALE: There are people who look at the incidents of the '90s and they say a President of the United States cannot have a consensual relationship with an intern. The power imbalance is --

CLINTON: -- was an adult. But let me ask you this, where's the investigation of the current incumbent against whom numerous allegations have been made and which he dismisses, denies and ridicules.

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BRIGGS: Clinton went on to say the way Donald Trump debated her in 2016 was quote, imbued with sexism.

ROMANS: All right, SEARS, the iconic retail chain that changed how Americans shopped is bankrupt. At midnight the 132-year-old company filed for bankruptcy. SEARS had been struggling for years losing nearly $12 billion since 2010, since been sales have plunged 60 percent. It has shut more than 2,600 stores and the final straw here, a $134 million debt payment due today. It couldn't pay it. SEARS is one of many prominent retailers to declare bankruptcy thanks to the rise of online shopping and big box stores, but SEARS also failed to invest and modernize.

[04:10:00] Now it will stay in business, it will keep profitable stores and its website open, but SEARS will close nearly 200 stores this year. Eddie Lampert, chairman of SEARS holdings will give up his title of CEO. He said the bankruptcy process will allow SEARS to become profitable, but many retailers have gone out of business after filing. Think of Toys "r" us, Radio shack and Sports authority.

BRIGGS: Breaking news out of London. The announcement coming just moments ago. The Duke and Duchess of Sussex are expecting a baby. The newest royal bundle of joy expected to arrive next spring. Joining us from London, CNN's Anna Stewart with more on the happy news. Anna, good morning to you. Didn't take long. I think we are just about five months.

ANNA STEWART, CNN PRODUCER: Exactly. In fact we did the calculations, Dave, I predict -- I think if we think that they're having a baby maybe mid-April, end of April, they were probably getting pregnant around July or August. Just a few months after their wedding. They certainly hit the ground running. They always said they wanted to start a family. So, really, it comes as no surprise. The statement from the palace was very short. They said they were expecting a baby as you said in the spring of 2019 and that the royal highness has appreciated all the support they have received from the people around the world since the wedding.

People will be so excited. These guys have such a huge following. They just arrived in Australia, in fact today they were greeted by huge crowds there. And they're starting this trip. They have 76 official engagements over in the next 16 days in Australia, (inaudible), New Zealand. They'll have well-wishers the whole way around that trip. And obviously everyone is now very eager to see a picture of the duchess of Sussex with a baby bump. She manage to hide it that quite well in last week's royal wedding of Princes Eugenie, she wore a coat over it. Dave.

BRIGGS: Thank you Anna Stewart live of us in London this morning. Boy, can you imagine the paparazzi increasing their fervor now?

ROMANS: Yes, absolutely.

BRIGGS: All right. Coming up, President Trump is set to tour hurricane ravage Florida just hours form now. More on the damage and the missing ahead.

ROMANS: And a U.S. Senator grabs a student's cell phone. The confrontation caught on video.

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BRIGGS: President Trump and First Lady, Melania Trump head to Florida this morning for a firsthand look at the devastation left by hurricane Michael. The White House is not revealing which locations they'll visit, but in hard hit Mexico beach, in grim announcements from local police, dozens of people who decided to ride out the storm are still unaccounted for. Martin Savidge in Mexico beach.

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MARTIN SAVIDGE, CNN CORRESPONDENT: Good morning, Dave. Good morning, Christine. President Trump is expected in some fashion to visit Mexico beach here and whether he actually just flies over it or touching down on the ground, he is going to like many people be impacted by what he sees. There is just no way that television do's justice to the amount of destruction that you will find here.

The words you can't find them. And the video doesn't seem enough of it to give you the full scope and scale of it, but even as the President visits and even as of course he promises more resources to be brought to bear, the biggest thing that they're worried about in this community is finding those who are unaccounted for. They know that there were about 300 people that rode out this storm or at least said they were going to. And the problem is trying to account for those people in the aftermath with so much devastation.

Communications have been a problem, although the cell service is back. And there's also been the problem that they had the addresses of where people were, but when they went to find their homes after the storm in some cases those homes were completely gone. Now, a lot of those people had been accounted for in some way. They have self-reported or they have been seen by witnesses alive and well afterwards, but the problem is there is a number of people who haven't been found. And the longer time goes on and there's no word from them, well, the greater the concern goes that they are still here somewhere.

So search and recovery teams from across the state and beyond have been pouring through the buildings and they have search just about all of it. Now they're left with the debris and there's so much of that to be sifted through. It could still be several more days before they can make a full accounting. Until then, they're encouraging residents to stay away. This community cannot support the people that used to live here. There's no power. There's no sewer and there is no running power. And we had already pointed out, communications pretty spotty.

Then there is risk of fire. There's so much timber on the ground here. You could have another disaster on top of the one you already have. Dave and Christine?

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

In California, strong winds are forcing pacific gas and electric to shut down power to more than 42,000 customers in extreme fire risk areas. Late Sunday, (inaudible) said it was pro-actively shutting off the power to customers in Lake Nafa and Sonoma counties. Earlier in the day, the utility said 70,000 customers in the Sierra foothills would also be affected. The move is part of a strategy by utilities across the state to reduce the risk of wildfires sparked by utility lines that break during extreme winds.

BRIGGS: All right. Ahead, a big night for New England sports fans. The Red Sox tangling with the Astros in game two of the ALCS.

ROMANS: And the Patriots hosting the undefeated chiefs, both games went down to the wire. Highlights ahead.

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BRIGGS: Georgia Senator David Perdue grabbing a Georgie tech student's phone over the weekend while the student tried to ask him a question about the voter suppression controversy now engulfing the state. A produce spokesman said the Senator thought he was being asked to take a selfie with the student. You be the judge.

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UNIDENTIFIED MALE: Hey, so how can you endorse a candidate --

UNIDENTIFIED MALE: I'm not doing that.

UNIDENTIFIED MALE: You stole my property. Give me my phone back.

UNIDENTIFIED MALE: You want a picture --

UNIDENTIFIED MALE: Give me my phone back, Senator. Give me my phone back.

That is U.S. Senator David Perdue. He just snatched my phone because he won't answer a question.

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BRIGGS: Perdue is at Georgie tech campaigning for the Republican candidate for Governor, Brian Kemp and his current job as Secretary of State, Kemp has put a hold on 53,000 voter applications most of them from African-Americans because they don't match the applicant's government I.D. exactly.

The late and great night for New England sports fans, the Red Sox tying it up the American League Championship at one game apiece with a 7-5 win over the Astros last night. Jackie Bradley Jr. known for his glove, he delivered the big blow. Three-run double off the monster, kind of ran up against the rails there for a while. That gave Boston a 5-4 lead. They led 7-4 entering the ninth. Bullpen surprising on this night, but the Astros got a run on the board against Craig Kimbrel. And nearly tied it, but Alex Bregman's two-run homer caught at the wall for the final out. Game three, Houston, Tuesday night.

[04:25:11] Tom Brady, the New England Patriots meanwhile handing the Kansas City chiefs their first loss of the season last night. 43-40 and a nail-biter, it came down to the final seconds. Chiefs quarterback Patrick Mahomess has been unstoppable, hooking up (inaudible), 75 yard touchdown pass to tie the score at 40 with three minutes remaining. Watch Hill get a face of beer and a salute from the New England sports fans there. Four Td passes from Mahomes, Tom Brady though marching the Patriots right down, Rob Gronkowski, 39 yards, sets up the game winning field goal. From Stephen Gostkowski. And he would drill it, spilling the upright to lift New England to the 4-2 record. Kansas City falls to 5-1. Let's see that again in the AFC championship.

ROMANS: All right. It appears Ariana Grande and Pete Davidson will not be walking down the aisle. After five months of dating a source close to the singer tells CNN the couples has split. The song stress and "SNL" comedian confirmed their engagement in June after just several weeks of dating. The source tells TMZ, the couple realized it was too much too soon adding the pairs still have love for each other, and reps for the stars have yet to comment. BRIGGS: Ahead, President Trump faced with the growing and complicated

crisis over the suspected murder of a Saudi journalist. The live report just ahead.

ROMANS: And the royal family expected to grow once again. The big announcement from Kensington palace coming up.

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