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Early Start with John Berman and Zoraida Sambolin

Trump Stays True to Strategy of Lies; Trump's Trade Adviser Talks Taxes; Trump Slams "Worst Cover-Up in History"; $1.6B Mega Millions Winner in South Carolina. Aired 4-4:30a ET

Aired October 24, 2018 - 04:00   ET

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


(BEGIN VIDEO CLIP)

[04:00:12] JIM ACOSTA, CNN CHIEF WHITE HOUSE CORRESPONDENT: There's no proof that they're in the caravan now?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, they could very well be.

ACOSTA: But there's no proof?

TRUMP: There's no proof of anything. There's no --

(END VIDEO CLIP)

DAVE BRIGGS, CNN ANCHOR: No proof of anything. No facts, no problem. The president sticking with the strategy on racial and cultural issues to rally Republicans ahead of the midterms.

(BEGIN VIDEO CLIP)

PETER NAVARRO, WHITE HOUSE TRADE ADVISER: We're seeing wage growth with that investment, and it's hitting on all cylinders.

(END VIDEO CLIP)

CHRISTINE ROMANS, CNN ANCHOR: The president's trade adviser says tax cuts and tariffs are behind the strong economy. So, why is the president targeting his Fed chair yet again?

(BEGIN VIDEO CLIP)

TRUMP: It was a total fiasco from day one.

(END VIDEO CLIP)

BRIGGS: The president's anger growing with the Saudis, calling their story about Jamal Khashoggi one of the worst cover-ups in history.

ROMANS: And someone in South Carolina is waking up $1.6 billion dollars richer today. The rest of you, have a good day at work.

Good morning and welcome to EARLY START. I'm Christine Romans.

BRIGGS: I'm Dave Briggs. I'd be here even if I won --

ROMANS: You would not --

BRIGGS: Only because I didn't see the winning numbers until I was halfway here to work. No, I would be in bed --

ROMANS: That's a lot of money. I mean, that's really a lot of money. That's life changing, multigenerational, a lot of money.

Be careful. Whoever you are out there, be careful.

BRIGGS: Hire a lawyer and hide.

My friends, 5, 28, 62, 65, 70 and 5. We'll replay those for you in a moment.

It's Wednesday, October 24th. Four a.m. on the east.

Congratulations to someone who's a billion dollars richer.

But we start with 13 days to the midterms and the president fully committed to vilifying the migrant caravan in Central America to energize his base. One problem, the president may be having -- well, he cannot back up many of his claims with facts. After days of asserting unknown Middle Easterners are embedded with the caravan, the president was asked for proof.

(BEGIN VIDEO CLIP)

TRUMP: Very good relationship with Border Patrol and ICE and they say it happens all the time, from the Middle East. It's not even saying bad or good, but some real bad ones. But --

ACOSTA: There's no proof that they're in the caravan now?

TRUMP: Well, they could very well be.

ACOSTA: But there's no proof?

TRUMP: There's no proof of anything. There's no proof of anything. But they could very well be.

(END VIDEO CLIP)

ROMANS: Ten minutes later, the Homeland Security Department spokesman tweeted, DHS can confirm there are gang members and criminals in the caravan, and people from the Middle East traveling through Mexico. But DHS is not confirming any of them terrorists or any proof for its claims saying it is law enforcement sensitive.

Look, the president with senior commanders in the room said he is considering military options for the border.

(BEGIN VIDEO CLIP) TRUMP: Thinking about a lot of things, thinking about everything, including the military. Not just the National Guard, the military is what I'm thinking about. We can't have people coming into our country illegally.

REPORTER: What legally could the military do?

TRUMP: They can do a lot. They're the military. Right, fellas? They're the military. They can do a lot.

(END VIDEO CLIP)

BRIGGS: The president doubling down while calling himself a nationalist while denying there are any racist overtones to that term.

(BEGIN VIDEO CLIP)

ACOSTA: There's a concern that you are ended coded language or a dog whistle to some Americans that what you really mean is that you're a white nationalist.

TRUMP: I never even heard that. I cannot imagine that. You mean I say -- I'm a nationalist. No, I never heard that theory about being a nationalist.

We protect, and we get killed. We do the training, and they get killed. Can't do it.

All I want our country is to be treated well, to be treated with respect. So, in that sense, I am absolutely a nationalist and I'm proud of it.

(END VIDEO CLIP)

BRIGGS: The president's potential 2020 opponents honing in all this, including former Vice President Joe Biden.

(BEGIN VIDEO CLIP)

JOE BIDEN, FORMER VICE PRESIDENT: This president's more like George Wallace than George Washington.

(LAUGHTER)

No. And Democrats have to choose hope over fear. Unity over division!

(CHEERS AND APPLAUSE)

We have to choose our allies over our enemies. We have to choose truth over lies.

(END VIDEO CLIP)

BRIGGS: President Trump back on the road tonight campaigning for Republicans in Wisconsin. Scott Walker in a very tough race for re- election there.

ROMANS: All right. President Trump touting a mystery tax cut for the middle class. With Congress out of session, D.C. scrambled yesterday to make sense of what the president was promising. Now, critics of the original GOP tax law say it favors companies over families, and it balloons the federal deficit.

I asked President Trump's top trade adviser, Peter Navarro, if another tax cut is necessary.

(BEGIN VIDEO CLIP)

NAVARRO: He's targeting the middle class 10 percent which I think is a great idea.

[04:05:02] One of the beauties of the Trump economy is the high levels of investment we're seeing from the tax cut and from the tariffs, investments coming on shore. Now, what does that do? What that does is it increases our productivity, and when you get increased productivity, real wages go up. So we're seeing wage growth with that investment. And it's hitting on all cylinders.

ROMANS: If the economy is so strong, and I think it is by every measure, and the president's talking about more tax cuts, do we run the risk of even worsening the deficit here?

NAVARRO: The best way to close a deficit is to add another point of growth.

(END VIDEO CLIP)

ROMANS: We've heard that how many times? That it's all about growing the economy, don't worry about the deficit right now.

What does President Trump think is the biggest risk to the economy? Well, the Federal Reserve. In the "Wall Street Journal" interview, he says Fed Chair Jerome Powell is raising interest rates too quickly and he is unhappy because Obama had zero interest rates.

BRIGGS: Candidates for the next governor of Georgia covered a range of topics during the debate last night sparring over criminal justice reform, education, Medicaid, and voter suppression.

Democrat Stacey Abrams, Republican Brian Kemp, and libertarian Ted Metz squaring off. Abrams defending a 1992 Georgia flag burning protest when it's still had the Confederate symbol.

CNN's Kaylee Hartung in Atlanta with more.

(BEGIN VIDEOTAPE)

KAYLEE HARTUNG, CNN CORRESPONDENT: Dave, Christine, for the first time in this hotly contested race, Georgia's candidates for governor faced off in a debate. And right out of the gate, Democrat Stacey Abrams was asked about the news of the day. Her admission that in 1992 she participated in a protest where the old Georgia state flag was burned.

STACEY ABRAMS (D), GEORGIA GUBERNATORIAL CANDIDATE: And 26 years ago as a college freshman, I along with many other Georgians, including the governor of Georgia, were deeply disturbed by the racial divisiveness that was embedded in the state flag with that Confederate symbol. I took an action of peaceful protest. I said that that was wrong. And ten years later, my opponent, Brian Kemp, actually voted to remove that symbol.

HARTUNG: The most controversial topic for Republican Brian Kemp to address -- the allegations of voter suppression by Stacey Abrams in his capacity as secretary of state.

BRIAN KEMP (R), GEORGIA GUBERNATORIAL CANDIDATE: We have more voters on the roll than when I took office. I created the process for overseas and military ballots to be delivered electronically. We have made it easier to vote and hard to cheat. And just because Ms. Abrams files a false lawsuit or the New Georgia Project, it doesn't mean it's right, and we defeated that in 2014.

HARTUNG: Both campaigns entered this debate with similar strategies -- to continue down their polar opposite paths. Both did that, continuing to energize their bases in a state where very few undecided voters remain -- Dave, Christine.

(END VIDEOTAPE)

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

The Democratic nominee for governor of Florida targeted by a blatantly racist robocall. Andrew Gillum mocked in a brutally offensive message delivered in black-faced dialect. The robocall also makes derogatory references to Jews and slavery. Listen.

(BEGIN AUDIO CLIP)

ROBOCALL: Well, hello there. I is a Negro Andrew Gillum, and I be asking you to make me governor of this here state of Florida. My esteem opponent who done call me the monkey, is doin' a lot of hollerin' about how expensive my plans for healthcare be. But he be thinking for the white man's medicine, which is very expensive because it uses science and whatnot.

(END VIDEO CLIP)

ROMANS: Oh, my god, it is 2018.

A right-wing extremist podcast, "The Road to Power," claiming responsibility for the message. Gillum's complain blasted the call as deeply offensive. No response yet from the campaign of his Republican opponent, Ron DeSantis.

BRIGGS: Gillum challenged on another front, claims he improperly accepted tickets to "Hamilton" on Broadway in 2016. New texts released under a subpoena from the state ethics commission cast doubt on Gillum's explanation. His campaign says his brother was the source of his ticket. But the texts hint they may have come from someone else.

Text messages were handed over by a close friend Gillum saw the show with, a friend who is also a lobbyist. Gillum's claim the cryptic texts prove he did not mislead the public.

ROMANS: President Trump this morning set to meet with U.S. officials returning from Turkey and Saudi Arabia. They were there looking into the death of "Washington Post" columnist Jamal Khashoggi. The "Wall Street Journal" asked the president about the possible involvement of Crown Prince Mohammed bin Salman.

Trump said: Well, the prince is running things over there. If anybody were going to be it would be him.

The president delivering his harshest indictment so far of the Saudis, and Khashoggi's horrific murder.

(BEGIN VIDEO CLIP)

TRUMP: They did the wrong thing in even thinking about the idea. They certainly did a bad job both execution and they certainly did a bad job of talking about it or covering it up, if you'd like to say that. But I would say it was a total fiasco from day one.

(END VIDEO CLIP)

[04:10:00] BRIGGS: Secretary of State Mike Pompeo says the U.S. will revoke the visa as of all the Saudis linked to the murder. He says the administration has, quote, identified at least some of the individuals responsible.

So far, it seems this fiasco has done little, though, to harm the crown prince's image back home. Crowds rushed to take selfies with MBS as he walked into the Saudi investment conference in Riyadh. The prince will make his first public speech since the Khashoggi crisis at the summit today.

ROMANS: Someone in South Carolina's waking up rich. At least one Mega Millions ticket worth an estimated $1.6 billion was sold in the Palmetto State. That person could walk away with a lump sum payment of $904 million. In case you missed it, here are the winning numbers: 5, 28, 62, 65, 70, and the mega ball is 5.

But don't worry, your dreams of becoming a zillionaire are not over. Tonight's Powerball drawing is worth a whopping $620 million.

BRIGGS: Pretty solid plan B.

OK. Game one of the World Series goes to the Red Sox. Boston defeating the Los Angeles Dodgers 8-2 on the strength of a three-run shot by Eduardo Nunez that broke it up in the bottom of the seventh. It was all offense for the team. No pitching duel that we thought.

Game two of the fall classic tonight at Fenway Park. It will feel like the mid to low 30s tonight at first pitch. Good luck. ROMANS: All right. Imagine getting on an escalator when this

happens. The malfunction sends dozens of people tumbling and looking for a way out.

(COMMERCIAL BREAK)

[04:15:40] ROMANS: The U.S. Military Cyber Command has started targeting Russian operatives it thinks are trying to interfere in the 2018 midterm elections. It's part of a broad part to make meddling more difficult. Tactics include sending phishing messages to suspected cyber operatives.

The operation unfolding as National Security Advisor John Bolton was meeting with Russian President Vladimir Putin, something President Trump may do in the next few weeks.

But let's go live to Moscow and bring in CNN's Matthew Chance -- Matthew.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Christine, thanks. That meeting being scheduled now for November the 11th between Presidents Trump and his Russian counterpart Vladimir Putin over here, that will be the fourth time the two leaders have met face to face. And, of course, the first time they've met since the now- infamous Helsinki summit back in July at which President Trump was harshly criticized for appearing to take the side of Putin against his own intelligence services over the issue of whether or not Russia meddled in the 2016 presidential election and the political process in the United States.

I think the expectation is or the hope is from the U.S. side is that the Trump administration can put that behind them, that they can negotiate with Russia on the separate issue now, because the pre- eminent issue to be discussed in Paris isn't meddling but it's nuclear disarmament and the U.S. decision to unilaterally pull out by President Trump of the INF treaty, the Intermediate Nuclear Range Forces Treaty, which the U.S. says Russia has violated. The Russians have expressed concern about that, saying it's a serious blow to nonproliferation efforts, and have urged some negotiation on it.

But the U.S. seems adamant that the Russians don't even acknowledge they violated it. So how can they renegotiate it? So, hard line from Washington on that -- Christine.

ROMANS: Absolutely.

All right. Matthew Chance for us in Moscow -- thanks, Matthew.

BRIGGS: All right. Staying overseas, an escalator malfunctioned at a metro station in Rome injures at least 20, one of them seriously. The video shows people screaming as dozens were thrown down at the metro station. Most of the injured were Russian soccer fans on their way to attend a Champions League match. Rome's mayor said it appears some were dancing and jumping on the escalator. A fire official says the investigation is ongoing.

ROMANS: That looks terrifying. I mean, they were going to a soccer game, a football game.

BRIGGS: Yes, a soccer match. Yes.

ROMANS: So, I mean, I look at that and think, what if you're going down there with the stroller, you know?

BRIGGS: Thankfully I don't see a stroller. I don't see any young children.

ROMANS: I don't either. I see a lot of people trying to get out of the way.

All right. The midterms less than two weeks away. The late-night hosts taking notice.

(BEGIN VIDEO CLIP)

TRUMP: Does everybody know what this means?

UNIDENTIFIED MALE: No.

(LAUGHTER)

I don't know what this means.

(END VIDEO CLIP)

ROMANS: More on late night's takes on the president, next.

(COMMERCIAL BREAK)

[04:22:53] ROMANS: An apology from Megyn Kelly for defending blackface Halloween costumes. During a segment on her NBC show, Kelly defended a reality star who portrayed Diana Ross last year.

(BEGIN VIDEO CLIP)

MEGYN KELLY, NBC HOST: What is racist? Because -- because truly, you do get in trouble if you are a white person who puts on black face for Halloween --

UNDENTIFIED FEMALE: Yes.

KELLY: -- or a black person who puts on white face for Halloween, like -- when I was a kid, that was okay as long as you were dressed as a character.

(END VIDEO CLIP)

ROMANS: A white star who portrayed Diana Ross.

After an immediate backlash, Kelly sent a note to her colleagues saying: One of the wonderful things about my job is that I get the chance to express and hear a lot of opinions. Today is one of those days where listening carefully to other points of view including from friends and colleagues is leading me to rethink my own views. In 2013, while still an anchor at Fox, Kelly infamously declared Jesus

and Santa were white men and called her comment a verifiable fact.

BRIGGS: Sandra Day O'Connor announcing she's been diagnosed with dementia. The retired Supreme Court justice revealed her condition in a letter. She writes she's in the beginning stages of dementia, probably Alzheimer's disease. And she writes while the final chapter of my life with dementia may be trying, nothing has diminished my gratitude and deep appreciation for the countless blessings of my life.

The 88-year-old O'Connor retired from the bench in 2006 in part to care for her husband who was suffering from Alzheimer's.

ROMANS: She's written so beautifully and poignantly about their life together and how that Alzheimer's diagnosis really changed what they thought would be their retirement together.

BRIGGS: A throwback to a different time confirmed 99-0.

ROMANS: That's right. You're right.

All right. A virus outbreak in New Jersey has killed six children. Health officials say the Adenovirus left 12 others infected at the Wanaque Center for Nursing and Rehabilitation in Haskell, New Jersey. Management has been ordered to stop admitting patients until the outbreak ends.

Adenovirus has usually caused mild to severe illness. But patients with weakened immune systems are at higher risks.

[04:25:01] The union representing nurses at the facility says it has complained about a shortage of supplies and staff.

BRIGGS: It's like something from a sitcom. A group of apparently dim-witted would-be robbers in Belgium took a storeowner's word when he told them to come back later because he didn't have enough cash in his register. The owner immediately called police. But when the group returned early, the owner told them to come back a third time.

When they actually did, officers were waiting. Five suspects were quickly arrested.

ROMANS: All right. While you were sleeping, the late-night comics weighing in on the president's road show and upcoming elections.

(BEGIN VIDEO CLIP)

STEPHEN COLBERT, COMEDIAN/LATE NIGHT HOST: The midterm elections are just two weeks away. So if you're going to quit America, you have to put in your notice now.

TRUMP: Does everybody know what this means?

COLBERT: No. Yon what this means. Are you -- are you feeding chickens? Are -- are you dealing blackjack? Oh, I know -- you're spreading bull (EXPLETIVE DELETED)

JAMES CORDEN, COMEDIAN/LATE NIGHT HOST: Trump's team said the president is scheduled to hold ten manufacture rallies before the election. So, don't worry, if he hasn't insulted your minority group yet, he will get to you. Just sit tight, OK?

(END VIDEO CLIP)

BRIGGS: The president in Wisconsin tonight.

And the president sticking with that tried-and-true strategy boasting about himself, bending facts, and pushing cultural norms. The latest example, next.

(COMMERCIAL BREAK)