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Early Start with John Berman and Zoraida Sambolin
Warren Fires Back At Trump On Social Media; Climate Change To Cause Problems In The Beer Industry; Pompeo To Meet With Prince and King Salman; Pompeo Ordered To Open Formal Investigation In Disappearance of Khashoggi; Suspicious Letter Delivered To The Home of Republican Senator Susan Collins; Michael's Death Toll Continues To Rise. Aired 4:30-5a ET
Aired October 16, 2018 - 4:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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ROMANS: The secretary of state is now in Riyadh meeting with the Saudi king and the crown prince this hour. The Saudis preparing to admit a journalist was killed during an interrogation gone wrong.
BRIGGS: President Trump and Elizabeth Warren sparring after a DNA test shows the senator's distant Native-American ties.
ROMANS: Residents have to wait another day before going back to the hardest hit area of Florida after Hurricane Michael.
BRIGGS: And is a beer shortage enough to make you care about climate change? Fortunately the president is a teetotaler, so that might not change his mind one bit. Welcome back to Early Start. I'm Dave Briggs
ROMANS: I'm Christine Romans. It is 31 minutes past the hour. About 90 minutes ago, Secretary of State Mike Pompeo landed in Riyadh in Saudi Arabia to meet with King Salman and the crown prince, Mohammad bin Salman about the presumed death of Washington Post journalist, Jamal Khashoggi. Overnight, Turkish investigators left the Saudi consulate in Istanbul after spending about nine hours searching that building.
BRIGGS: Now, two sources telling CNN the Saudis are preparing a report expected to acknowledge Khashoggi's death and call it, the result of the unsanctioned interrogation gone awry. Senior international correspondent Sam Kiley standing by live for us in Riyadh. Sam, good morning. What's the latest?
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we've just heard this morning that the attorney general here was ordered by King Salman to open an investigation into what's still being officially characterized as a disappearance. And it is also telling, I think, that Mr. Pompeo is scheduled, not only to meet the king about now, but to spend most of his time and indeed dinner tonight, with MBS -- Muhammad bin Salman, the crown prince -- who has been the force in the land. It is him who said to the Bloomberg news agency more than a week ago
now, that Mr. Khashoggi had left the consulate in tact and that anybody was welcome to go and inspect the premises anytime they wanted. It is believed he was behind the hard line narrative of denial until his father stepped in.
And now we are getting from several sources this idea that they are -- the royal family is distancing them of what went on inside that consulate; projecting downwards toward subordinates and suggesting this was perhaps, an unauthorized attempt at rendition or capture of Saudi dissident would be an exaggeration, a Saudi journalist who was critical of the government here in order to bring him back to face the music and something went wrong in that consulate. But it's very interesting that Mr. Pompeo is going to be spending so much time with the crown prince.
BRIGGS: Still to come is all the talk about this Davos in the Desert, this business conference in Saudi Arabia. What's the latest on that after high profile execs of companies have pulled out and what about Steve Mnuchin?
KILEY: Well, we understand that the treasury secretary will have until Friday according to the Trump administration to decide whether or not he comes. He hasn't said one way or the other, it's still under review. A lot will depend on what Mr. Pompeo learns today and also whether or not the Saudis ultimately decide it's worth having the Davos in the Desert meeting.
They don't want the narrative to be nobody just that showed up. So they hoping, I think to clear it up as soon as rapidly as they can from their perspective, whether that satisfies the family and the international community. Of course it remains to be seen.
BRIGGS: All right, we're standing by to see Mike Pompeo there in Saudi Arabia. Sam Kiley, live for us this morning. Thank you.
ROMANS: All right, so the White House is still plotting its next move in response in the apparent murder of that Saudi journalist. President Trump telling reporters he spoke to Saudi King Salman for 40 minutes on Monday and the president seems to be accepting these denials.
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TRUMP: The king firmly denied any knowledge of it. He didn't really know -- maybe -- I don't want to get into his mind, but it sounded to me like maybe these could have been rogue killers. Who knows?
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All I can do is report what he told me and he told me in a very firm way that they had no knowledge of it. He said it very strongly. And it sounded like he, as also, the crown prince, had no knowledge.
(VIDEO ENDS) BRIGGS: The Washington Post, where Khashoggi was a contributing writer, has published an op-ed entitled, "Who Needs Saudi Arabia?" the news paper's editorial board argues the president is overvaluing his relationship with the kingdom writing, "the reality is, that Saudi Arabia has everything to lose from a break in relations while the United States is no longer needing the kingdom as much as it once did. Whatever the outcome of the Khashoggi case, a fundamental reshaping of the relationship ended (ph) by Congress if necessary is imperative."
ROMANS: Secretary of Defense James Mattis making it clear overnight he never talked with President Trump about leaving the administration. This comes after a bruising 60 Minutes interview where the president said Mattis was, quote, "sort of a Democrat" and claims he knew the president knows more about NATO than his defense secretary, by the way, who was once a top NATO commander. But on the plane to Vietnam overnight, Mattis said this.
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MATTIS: I'm on his team. We have never talked about me leaving, and as you can see right here, we're on our way. We just continue doing our job.
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BRIGGS: Mattis later telling reporters he and the president spoke, each saying they're 100 percent with the other. CNN reported in June on their differences between Trump and Mattis that were leading to friction at the pentagon.
ROMANS: Right, could we be witnessing a preview of the 2020 election? President Trump and Elizabeth Warren duking it out over a DNA test that confirms the senator's distant native-American ties, dating back six to ten generations. That means she is between 1/64 and 1/1024 native-American. When asked if she -- if he owes the senator and apology for of all his Pocahontas cracks, President Trump turns the tables.
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TRUMP: I owe her? She owes the country an apology. What is her percentage? 1/1000?
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BRIGGS: At a rally in July, the president did promise to donate $1 million to charity if Senator Warren took a DNA test to show she was quote, "an Indian." He now claims that offer was contingent on her winning that nomination. Warren firing back on Twitter, saying "We all know why Donald Trump makes creepy physical threats about me, right? He's scared. He's trying to do what he always does to women who scare him: call us names, attack us personally, shrink us down to feel better about himself. It may soothe his ego, but it won't work."
ROMANS: The Cherokee nation not amused about all of this. It's Secretary of State Chuck Hoskin Jr, releasing this statement, "Using a DNA test to lay claim to any connection to the Cherokee nation or any tribal nation, even vaguely, is inappropriate and wrong. Senator Warren is undermining tribal interest with her continued claims of tribal heritage." For her part, Warren says she respects the distinction between family history and tribal affiliation.
BRIGGS: Officials say nearly 250 immigrant children remain in U.S. custody separated from families. Court documents show most of the children have parents who are removed from the United States, of those just 18 are currently in the pipeline to be reunited with their parents in their home countries.
The filing in the ACLU's class action suit against the separations comes as the Trump administration considers a new pilot program. This one could result in more family separations. The plan would allow immigrant -- migrant families to either remain together while their case move through the system or have just the children released while their parents remain behind bars.
ROMANS: A federal judge throwing out Stormy Daniels' defamation lawsuit against President Trump. The adult film star sued in April when the president accused her of a total con job in a tweet after she claimed a man threatened her to stay silent about her alleged affair with Mr. Trump.
District Judge James Otero ruled the tweet in question constitutes rhetorical hyperbole normally associated with politics. In other words, free speech. Judge Otero also ruled the president is entitled to attorney's fees. Stormy Daniels lawyer, Michael Avenatti, has already filed a notice of appeal.
BRIGGS: Tributes are pouring in for Paul Allen, the billionaire co- founder of Microsoft. The investor, entrepreneur, and philanthropist, died Monday at 65 of complications of non-Hodgkin lymphoma. Allen launched Microsoft with Bill Gates in 1975, a few years after the two met at a Seattle private school. Allen left the company back in 1982 after he was diagnosed with Hodgkin's disease. Gates remembering Allen as a dear partner and friend, personal computing would not have existed without him.
ROMANS: Allen remained on the Microsoft board as he launched his own foundation and a special investment firm, and he bought two sports teams, the NBA's Portland Trailblazers and the NFL's Seattle Seahawks.
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Quarterback Russell Wilson honored his boss in a tweet, "We have lost a friend and a giant. Mr. Allen, thank you for your extraordinary vision, your abundant generosity and for believing in all of us. By your example, you made us all better, kinder. May you rest in peace. Go hawks."
It literally changed the world, how we live ...
BRIGGS: Yes. And ...
ROMANS: ... you know? BRIGGS: ... not enough people know how -- how he, indeed, changed sports as well.
ROMANS: Yes.
BRIGGS: Like, three Super Bowls, two NBA Finals; he will be missed.
Ahead, drug makers may have to disclose prices in their t.v. ads. Will that actually help keep the costs under control?
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ROMANS: President Trump and the first lady get a close up look at the devastation left by Hurricane Michael. They handed out water to storm victims in the Florida Panhandle, it was at a Red Cross center, and met with hard-hit farmers in Georgia. The president praising the storm response and -- and seemingly in awe of Michael's power.
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: You see this -- personally it's -- it's very tough. It's very, very tough. Total -- total devastation.
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BRIGGS: The death toll from Hurricane Michael now stands at 19 in four states. A body was found Monday in Mexico Beach. The number of missing people there dropped from more than 30 to just three. Crews are finishing their third and final sweep of the area using cadaver dogs.
ROMAN: Mexico Beach residents will be allowed to return tomorrow. They cannot stay there, and an 8:00 PM curfew is in place until further notice. More than 230,000 customers in Florida still without power in stifling heat. Schools still closed in Washington, Liberty, Jackson, Gulf, Gadsden, Franklin, Calhoun, and Bay counties.
BRIGGS: While much of Mexico Beach was obliterated by Hurricane Michael, one structure is still standing high above the debris. Take a look at the Sand Palace, a three-story four-bedroom vacation rental on stilts. Its roof, windows, and doors are largely intact after the storm.
Although the home will need some repairs, the New York Times reports the Sand Palace was built to handle the big one, able to withstand 250 mile-an-hour winds. The co-owners of the home will be on New Day later this morning.
ROMAN: It looks like it almost shielded the home behind it, too. That's just remarkable.
BRIGGS: Its neighbors gone.
ROMAN: Remarkable.
BRIGGS: Yes.
ROMAN: All right. Drug makers may soon have to disclose prices in TV ads, and the industry is pushing back; the Trump administration announcing a new federal rule forcing drug makers to include the price of any drug covered by Medicare or Medicaid.
Health and Human Services Secretary Alex Azar blasted the pharmaceutical industry while unveiling this plan in a speech yesterday. He says patients deserve to know if the drug company has pushed their prices to abusive levels every time they see a drug advertised on TV.
Hours before the secretary's speech, the industry fired back. Drug makers say list prices mislead consumers. They do not take into account rebates and insurance payments. They also promise to voluntarily include price info in the ads but instead of listing prices, they'll direct consumers to websites.
Azar says list prices are meaningful and could be an incentive to drive down prices. This is the boldest move yet by the Trump administration to curb rampant drug price increases. Prescription drugs are on track to cost a 6.3 percent more over the next 10 years. Lawmakers from both parties are pushing for price transparency from drug makers, saying that a patient deserves to know if a company is -- is -- is pushing the prices higher.
BRIGGS : All right, well, some progress there. Ahead, imagine if this happened to your plane (ph). Renewed concern about drones after tests showed that bigger aircraft may not always win.
Who would win here? Bottom of the 9th, bases loaded, two outs, see how the drama unfolded between the Brewers and Dodgers.
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BRIGGS: Police are investigating a suspicious letter delivered to the home of Maine Republican Senator Susan Collins. A spokesperson for Collins says her husband, Tom Daffron, received the letter which the writer claimed was contaminated with ricin. Daffron, the family dog and parts of the home were quarantined. The area has now been cleared. Collins has come under intense political scrutiny after voting to confirm Brett Kavanaugh to the Supreme Court. Anti- Kavanaugh protesters have targeted her at her Bangor, Maine home.
ROMANS: A California utility says it has turned the power back on for nearly two-thirds of customers who had their electricity shut off in the face of high-fire danger. Pacific Gas and Electric cut power starting Sunday to nearly 60,000 customers in the North Bay and Sierra Foothills, sparks from PG&E power lines that -- that broke in high winds have been blamed for a number of California wildfires. The utility says the rest of the affected customers should have power back today after crews perform safety inspections on the power lines. BRIGGS: This morning, the FBI and the Department of Homeland Security trying to determine how hackers gained access to a local water utility in North Carolina that serves three military commands. The Onslow Water and Sewer Authority said its sewers and -- servers and personal computers, excuse me, were hit by persistent ransomware attacks beginning earlier this month. They say customer information was not compromised and the water system is safe.
ROMANS: New impact tests prove large aircraft won't always win in a collision with small drones. A -- a test designed to mimic a mid-air collision at 238 miles per hour shows that bigger may not always be better. In that test, the drone did not shatter on impact but it tore open an M20 aircraft's wing. A lead researcher says as the number of hobby drones in the air dramatically increases, so does the risk of a catastrophic air event.
BRIGGS: If science and the possible end of civilization don't get your interested (ph), well, maybe beer will. A new study published in the journal Nature Plants finds climate change will cause a global beer shortage. That's because its main ingredient barley is sensitive to extreme drought and heat, which would lead to substantial decreases in barley crop yields. A price surge would also be on tap, some say up to 20 percent.
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A study finds that price of beer around the word would double on average.
ROMANS: All right, it's compared to a garbage truck for the ocean, a 2000 foot long floating pipe nicknamed Wilson, that is set to start scooping up plastic debris in the middle of the Pacific. The Ocean Cleanup Foundation says the pipe will float around, carrying a ten- foot deep skirt beneath the watt, trapping tons of floating plastic. Wilson will transmit its position and status via satellite. The foundation plans to deploy 60 floaters like Wilson to help clear the 450 million tons of plastic expected to clog the world's oceans in the next decade.
BRIGGS: The Milwaukee Brewers now just two wins away from their first World Series appearance in 36 years after a 4-0 victory over the Dodgers in game three of the NLCS. Normally light hitting, Orlando Arcia, delivering a big blow for the Brew crew, a two run shot in the seventh, Arcia's third of the post season. Things tend to get a bit tense in the ninth when reliever Jeremy Jeffress loaded the bases with one out. They struck out the next two. Game four tonight in LA, game three of the ALCS, Red Sox, Astros, 5:09 on TBS today.
ROMANS: Get the office pool together, its time. Tonight, the Mega Millions drawing is now $654 million. The estimated cash value -- lump sum payment, a pulse rate, $372 million. This is now the second largest in the game's history, and by the drawing tonight, it could eclipse the record set of $656 million set in 2012. You should find your 529 first (ph).
BRIGGS: I'm in. ROMANS: All right, let's get a check on CNN Business this morning.
Global stocks mixed today after U.S. stocks fell again. Wall Street failed to bounce back from last week's drought. Last week, when all three indices lost 4 percent, investors are worried about higher interest rates. Even earnings season couldn't give stocks a bounce.
The season kicks off in earnest this week, and investors hope for another quarter of double digit profit growth. Today, expect to hear from United Airlines, Johnson & Johnson and big names in finance and tech, including Netflix. Investors believe Netflix will keep increasing its revenue and global growth. Its stock is up 76 percent this year.
Google may still launch a censored version in of its search product in China. That's what the CEO Sundar Pichai said Monday. He said, "Plans are still in the early stages," but he felt it was something important to explore. This controversial and secret project was first revealed during a senate hearing last month.
More than 1,000 Google employees signed a letter asking for more transparency about this project. The prospect of Google in China helping an authoritarian regime has fuel criticism from human rights groups; but China is a huge market and other companies have bowed to the Chinese government pressured to operate there. For example, U.S. Airlines no longer show or list Taiwan as a separate country, bowing quickly to the Chinese government.
Jeff Bezos says that despite internal criticism, Amazon will still do business with the department of Defense. Amazon is vying (ph) for a $10 billion contract to consolidate and host DOD's data, but Amazon has faced backlash from Amazon employees over its business deals with government agencies, specifically providing law enforcement agencies facial recognition software.
They say it could violate human rights. But Bezos warned against cutting ties with the government completely, saying that if big tech companies are going to turn their back on the DOD, this country is going to be in trouble.
All right, Early Start continues right now.
The secretary of State is now in Riyadh meeting this hour with the Saudi king and crown prince. The Saudis preparing to admit a journalist was killed during an interrogation gone wrong.
(VIDEO BEGINS)
TRUMP: She owes the country an apology.
(VIDEO ENDS)
President Trump and Elizabeth Warren sparring after the DNA test shows the senator's distant Native-American ties.
Residents still have to wait another day before going back to the hardest hit part of Florida after Hurricane Michael. And is a beer shortage enough to make you care about climate change?
Good morning everyone, welcome to Early Start this Tuesday morning. I'm Christine Romans. It is October 16th; it is 5:00 a.m. exactly in the east.
All right, just over two hours ago, Secretary of State Mike Pompeo landed overnight in Riyadh, Saudi Arabia to meet with King Salman and Crown Prince Mohammad bin Salman, MBS, about the presumed death of Washington Post journalist Jamal Khashoggi. Overnight, Turkish investigators left the Saudi consulate in Istanbul after spending about nine hours there, searching that building.
Now, two sources tell CNN the Saudis are preparing a report expected to acknowledge Khashoggi's death and call it the result of the unsanctioned interrogation gone awry. Senior international correspondent Sam Kiley is in Riyadh for us, And Sam, while we're waiting to hear from the secretary of State and to hear from the Saudi king.
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