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Early Start with John Berman and Zoraida Sambolin

Deputy National Security Adviser Out of the White House; Florida Recount Tallies Due at 3 PM Today; European Union Council President Confirms Brexit Summit. Aired 4:30-5a ET

Aired November 15, 2018 - 04:30   ET

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

(COMMERCIAL BREAK)

[04:31:02] DAVE BRIGGS, CNN ANCHOR: A dark cloud surrounds the White House. The president's mood taking a turn for the worse after midterm losses and a public rebuke from his wife.

CHRISTINE ROMANS, CNN ANCHOR: The Democrats pick up two more House seats, but Nancy Pelosi's path to reclaim the speaker's gavel faces new challenges.

BRIGGS: Election recount numbers due today in Florida, 3:00 Eastern Time. Which major county could miss the deadline and what it means for major races?

ROMANS: And get ready for an ugly day for commuters along the East Coast. A mix of floods, ice, even snow all the way down south up to New England. Not looks pretty.

BRIGGS: Not really.

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

BRIGGS: I'm Dave Briggs. 31 minutes past the hour.

Romans, did you know on the way to work I was able to buy cereal.

ROMANS: Did you need an I.D.?

BRIGGS: Without an I.D. 24-hour markets, they did not I.D. me for any of the cereal.

ROMANS: Do you think he meant Sudafed? We're talking about the president who said --

BRIGGS: We'll describe that later in the program.

ROMANS: You need an I.D. to buy cereal in America which, of course, is not true as Dave just proved.

BRIGGS: All right. Let's turn to the president. He is reportedly pissed at damn near everyone. The words of one White House official describing President Trump after a series of setbacks and election night drubbing, infighting among aides, and the first lady's public demand to fire a National Security official. Aides tell CNN the president is isolated and getting angrier by the hour.

ROMANS: A week after declaring victory in the midterms, the president's friends tell CNN he is bitter about election losses, he's worried by the intensifying Mueller investigation. He is now openly musing about replacing more top aides and the first one to go is that National Security official Melania Trump wanted gone. Mira Ricardel is out of the White House but out of the administration.

CNN's Jeff Zeleny explains.

JEFF ZELENY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Christine and Dave, all that talk of a White House staff shakeup is actually leading to one departure. You'll remember that story of the deputy National Security adviser just a couple of days ago in the crosshairs of First Lady Melania Trump. Well, the president finally making a decision to remove her from her position here at the White House. The president has decided to move her to another part of the administration but will indeed be leaving the National Security Council and White House.

Now important to point out, she was the top ranking deputy to John Bolton, the National Security adviser, who had -- you know, had her full support and she indeed was a key part of his team here at the White House. So this is a big departure. But certainly one, even it took the White House about 24 hours or so to acknowledge she was going to leave, it was almost unthinkable that anything else would happen because that would be president essentially ignoring the wishes of the first lady.

Many people are wondering why the first lady didn't tell the president privately. Well, sources here are saying that she had done that and there was no action taken. So that is why she called for the public firing of her. But in any case, there is no sense that this will be last shakeup. In fact the president saying that he will make a decision soon on the Homeland Security secretary. The key adviser we're looking for, White House Chief of Staff John Kelly. Will he leave as well?

Those questions and anticipation is certainly swirling out there. But it is one sign the president is going to make good on his pledge to have a new team around him at least in some respects as he heads into the second two years of his first term in office -- Dave and Christine.

BRIGGS: Jeff Zeleny, thank you.

The GOP facing a new complication, winning Senate confirmation for Trump administration judicial nominees, this morning. Retiring Republican Jeff Flake says he won't vote yes unless bipartisan legislation protecting Special Counsel Robert Mueller receives a floor vote. The threat came after Senate Majority Leader Mitch McConnell blocked a floor vote on the special counsel bill that Flake and Democratic Senator Chris Coons are pushing.

ROMANS: Flake and a handful of other Republican senators say legislation is necessary after the president fired Jeff Sessions and named Matt Whitaker acting attorney general. [04:35:05] Whitaker has been openly critical of the Mueller probe.

(BEGIN VIDEO CLIP)

SEN. JEFF FLAKE (R), ARIZONA: With the firing of the attorney general and in my view the improper installation of an acting attorney general who has not been subject to confirmation by this body, the president now has this investigation in his sights and we all know it.

(END VIDEO CLIP)

ROMANS: McConnell and other Senate Republicans say the measure is not needed because the president is not about to fire Mueller.

BRIGGS: The Democrats gaining two more seats in the House of Representatives as races in California and New Jersey are called. And that brings Democrats total net pickups in the House to 32, with still eight races still to be called. Democrats now poised to hold at least 227 seats in the new Congress. Meantime, a new wrinkle in Nancy Pelosi's bid to regain the speaker's gavel. Seventeen House Democrats have now signed a letter saying they will not vote for Pelosi on the House floor.

ROMANS: Five additional Democrats are pledging not to support Pelosi, although they have not yet signed that letter. If they all stick to their word, she may not have the votes to become speaker. But Pelosi and her allies frankly are confident saying she will call the critics' bluffs. So far no House Democrat has actually stepped forward to run against Pelosi, and that's the key here. But Ohio Representatives Marcia Fudge and Tim Ryan both tell CNN they are not ruling out a bid.

BRIGGS: President Trump announcing his support for a bipartisan prison reform bill -- yes, bipartisan. Can you believe it? It's called the First Step Act. The legislation shortens mandatory minimums for firearm offenses, eliminates these so-called stacking provisions that result in lengthy consecutive sentences, and reduces the number of nonviolent drug offenders serving mandatory minimum sentences.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're all better off when former inmates can receive and reenter society as law-abiding productive citizens. And thanks to our booming economy, they now have a chance at more opportunities than they've ever had before.

(END VIDEO CLIP)

ROMANS: The reform is a key focus for the president's son-in-law and senior adviser Jared Kushner. The president's support firmed up after White House officials showed there's growing support for the bill across the political spectrum and among law enforcement. Senate leaders say they will bring the measure to a floor vote if there are 60 votes in favor. The White House says it's optimistic.

BRIGGS: The death toll in California now stands at 58, as catastrophic wildfires ravage the state. At this hour 56 people known to have died in the Camp Fire in Northern California, making it by far the deadliest wildfire in state history. 130 people are unaccounted for, most of them senior citizens. More than 10,000 structures destroyed, most of them homes.

ROMANS: The Camp Fire now estimated to have burned 138,000 acres is 35 percent contained.

CNN's Dan Simon traveled with the National Guard that went house-to- house looking for victims.

(BEGIN VIDEO CLIP)

SGT. STEVE COLLINS, BUTTE COUNTY SHERIFF'S INVESTIGATIONS: Everybody that's involved here has emotional connection to this. A lot of the people that are from this community have directly been impacted by their losing their home or know somebody that lost their home. They are housing people that lost their homes. It's -- this hit hard.

(END VIDEO CLIP)

BRIGGS: The utility company PG&E could be in deep financial trouble if it's found liable for the Camp Fire. The utility disclosed Tuesday it experienced an outage just 15 minutes before the Camp Fire started.

In the face of tragedy, people are stepping up. A California couple took in a 93-year-old veteran after he fled the fire in Paradise. The volunteer organization North Valley Animal Disaster Group working to relocate and shelter animals like these horses.

ROMANS: Donations of things like food, clothing, blankets, piling up at this parking lot in Chico, California. Some donations even being brought by sea. One man filled his 150-foot yacht with supplies, brought to shore by volunteers on surf boards to be delivered where they're needed. Meantime firefighters in Southern California gaining the upper hand on the Woolsey Fire. That blaze is now 52 percent contained. At least two people died in that blaze.

More trouble for Facebook. The "New York Times," huge expose of the "New York Times" reports that Facebook hired a political opposition research group after criticism of how it handled Russian interference in the 2016 election. "Times" reports Facebook expanded its work with a group called Definers Public Affairs in October 2017 to combat this growing criticism. Definers reportedly wrote articles attacking Google and Apple and downplaying how Facebook was affected by Russian interference.

The "Times" reporting, quote, "Facebook employed a Republican opposition research firm to discredit activist protesters, in part by linking them to the liberal financier George Soros."

[04:40:06] It also tapped its business relationships, lobbying a Jewish civil rights group to cast some criticism of the company as anti-Semitic. Those articles were then published on NTK Network, an affiliate of Definers, whose content is followed by politically conservative outlets, including Breitbart. Other revelations in the report include Sheryl Sandberg's anger at Facebook's former security chief when Facebook was told about the full extent of Russian interference in 2016.

It paints a picture of Sheryl Sandberg and Mark Zuckerberg really behind the ball in some cases.

BRIGGS: Not just behind it, but almost pushing back against what the public should have known.

ROMANS: Exactly.

BRIGGS: And Sheryl Sandberg really does not come out well in this reporting.

All right. Get ready to get soaked. Rain, ice, snow all along the East Coast. Your full forecast, next.

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[04:45:05] ROMANS: The president with zero proof but a lot to lose claims some people in Florida are voting twice. In an interview with the conservative "Daily Caller," the president said this, "When people get in line that have absolutely no right to vote and they go around in circles, sometimes they go to their car, put on a different hat, put on a different shirt, come in and vote again."

Once again, there is no proof of that.

BRIGGS: Meantime, Florida Governor Rick Scott announcing he will recuse himself from certifying the election in which he is a Republican Senate candidate. Scott was even in D.C. yesterday getting introduced as a new senator with other Republicans. In unofficial results before the recount began, Scott led Democratic opponent Bill Nelson by fewer than 13,000 votes. The official results are due today but one big county may not make it.

CNN's Jessica Dean in Fort Lauderdale, Florida, with more.

JESSICA DEAN, CNN CORRESPONDENT: Good morning, Dave and Christine. We have made it to Thursday. This is the day that so many eyes have been on because this is the deadline, 3:00 p.m. today, when all counties across Florida are supposed to have their recount tallies into the Secretary of State's office.

Here in Broward County they say they are on track to get that completed without any issues, that they will have those new numbers in, their new count into the Secretary of State's office by the deadline, but Palm Beach County is standing out as the one county across Florida that says they're not sure that they're going to make it.

They have been plagued by old equipment that is overheating. It's not able to really take the pace that a lot of this other equipment like they have here at Broward County is able to take. That has slowed down the process for them. The supervisor of elections there saying on Wednesday she was in prayer mode that they were going to make the deadline.

Now Democrats have a pending lawsuit to lift all deadlines for the recount to make sure that everyone gets those numbers in. The law currently says that if they don't meet the deadline, that the election day numbers, those unofficial numbers they first submitted last Saturday, will stand.

So a lot of moving parts, and don't forget, a lot of lawsuits sitting out there as well. There will be more to come on this throughout the day. But again, today at 3:00 that's the time to watch -- Dave and Christine.

BRIGGS: All right. Not far away. Jessica, thanks.

Not just cold temperatures invading the northeast, a wintry mix also moving across the Mid-Atlantic to the coast bringing with it rain, snow and ice. 31,000 customers already without power in Indiana.

Here's meteorologist Derek Van Dam.

DEREK VAN DAM, AMS METEOROLOGIST: Good morning, Dave and Christine. Major winter storm impacting the East Coast today. You can see how it is evolving across the Ohio River Valley, overspreading moisture and plenty of cloud cover across the region.

We've got several concerns that we're monitoring, including a full-on ice storm across central and southern Indiana and portions of southwest Ohio, with the potential for heavy snowfall, especially away from the coastline in the major cities. However, we still have the potential for some of the white stuff on the ground from New York all the way to Boston.

Over 80 million Americans under a winter weather advisory, winter storm warning, ice storm warning, five to seven inches of snow possible in St. Louis today and right along the spine of the Appalachian Mountains with high elevation snowfall for upstate Vermont, New Hampshire, Maine, into New York as well. It could exceed a half a foot.

Thirty-one million people impacted by the potential of flooding today, from Atlanta all the way to the nation's capital. You can see the rain and snowfall totals for this region. Maybe a couple of inches on the ground by this time tomorrow in New York City. 35 degrees today for the Big Apple but we warm up quickly into the weekend.

Back to you.

BRIGGS: Thank you, Derek.

Attorney Michael Avenatti adamantly denying any wrongdoing after his arrest on suspicion of felony domestic violence. The Los Angeles Police Department says the report was taken Tuesday in west Los Angeles. Avenatti posted a $50,000 bail then left police custody Wednesday evening.

(BEGIN VIDEO CLIP) MICHAEL AVENATTI, ATTORNEY FOR STORMY DANIELS: I have never struck a woman. I never will strike a woman. I am a father to two beautiful, smart daughters. I would never disrespect them by touching a woman inappropriately or striking a woman.

(END VIDEO CLIP)

BRIGGS: It is unclear who made the complaint. But it was not Avenatti's estranged wife. He says he wouldn't hit anyone. Avenatti has floated the idea of a possible 2020 presidential run. Following his arrest, the Vermont Democratic Party canceled his appearances for Friday and Saturday.

ROMANS: All right. The funeral will be held today for Sheriff Ron Helus who was killed last week in the Thousand Oaks shooting. The Country Music Awards honoring the 12 victims of last week's shooting at a Southern California country music bar. Musician Garth Brooks opened the show by telling the audience the night would be dedicated to the victims killed at the Borderline Bar & Grill.

(BEGIN VIDEO CLIP)

[04:50:01] GARTH BROOKS, MUSICIAN: Tonight let's celebrate their lives. Let the music unite us with their love and their enduring memory. So please join me now in a moment of silence.

(END VIDEO CLIP)

BRIGGS: Those were the victims of that shooting. This is the second year in a row country music has faced this sort of dilemma. The Las Vegas shooting last year came just a few weeks before the awards.

ROMANS: All right. 50 minutes past the hour. Uber continues to lose money as it races toward a much hyped public offering next year.

We're going to check of CNN Business next.

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[04:55:23] BRIGGS: European Union Council president Donald Tusk setting a deadline for British lawmakers to decide on a draft Brexit agreement. Tusk accepting the draft then backed by the cabinet of British Prime Minister Theresa May and setting a meeting to formalize and finalize the Brexit agreement just 10 days from now. The fallout was quick. The Brexit secretary resigning overnight.

CNN's Nina Dos Santos live in Britain with more this morning. Good morning.

NINA DOS SANTOS, CNN EUROPE EDITOR: Good morning. Thanks so much, Dave. Yes, well, in the last hour as you pointed out the secretary of state for exiting the EU, the Brexit secretary, Dominic Raab, has become the first big beast of Theresa May's cabinet to fall saying that he didn't want to sign his name to this deal largely because it left the UK beholden to the EU for an indefinite amount of time without giving it the sovereign that it needs. And also it doesn't answer of Northern Ireland to safeguard Northern Ireland sovereignty.

Remember there is a key Northern Irish party, the DUP, that props up to Theresa May's cabinet so of course it's crucial that their fears are relayed. And this deal he said doesn't do that. Well, the fact that Raab has become the second Brexit secretary in the last year or so to resign, also gives political cover for future potential resignations or even a leadership challenge to start to be mounted over the next week or so before we have those negotiations in Brussels that, as you said, Donald Tusk has called the 25th of November to rubber stamp this deal before it gets to the really difficult part or to be getting it through parliament.

For the moment, it doesn't look as though Theresa May actually has numbers on either side of the aisle to try and make up the numbers to get it through parliament. If she can't do that, she could have to go back to Brussels, there could be another referendum. All options could be on the cards.

For the immediate future, Dave, what we are expecting in half an hour is Theresa May to present this 585-page long document to parliamentarians. She is likely to get quite a grilling. Now it has already made it clear that normally these debates last one hour. Well, since cabinet lasted five hours yesterday, it's likely that it's going to be longer than that today.

Back to you.

BRIGGS: All right. Still a long and choppy road ahead. Nina Dos Santos live for us just before 10:00 a.m. there in Venice.

ROMANS: All right. Let's stay in the world of money. Let's get a check on CNN Business this morning. Global stock markets are higher. Optimism about the U.S.-China trade war. China made an opening bid to reopen trade talks ahead of President Trump and President Xi's meeting at the G-20 in Buenos Aires later this month.

Let's go around the world. In Asia the Nikkei is down a little. Shanghai and Hang Seng are higher. European markets opened slightly higher. The FTSE just about half a percent. The stock index futures in the U.S. are also higher this morning. That will be a bounce back from this. The Dow closed down 206 points Wednesday. It was another turbulent day there. The S&P 500 declined. So did the Nasdaq here.

Apple lost another 3 percent on iPhone demand concerns.

Bitcoin is on the ropes again. Bitcoin's price plummeted more than 10 percent on Wednesday. The lowest level in more than a year. Wednesday's drop is a sharp reminder if you needed one that cryptocurrencies are extremely volatile as an investment. Some would call it made-up Internet money. Bitcoin now trading below $6,000, far from the heights it reached during the rise at the end of last year. Bitcoin's plunge was driven in part by expectations that another major cryptocurrency Bitcoin Cash will split into two on Thursday.

Uber said Wednesday it lost $1 billion in the three months ending in September. That's a bigger loss than the $891 million in the quarter prior as Uber invests in newer services ranging from food delivery to scooters. In its latest earnings released Uber highlighted strong growth in its food delivery service, Uber Eats, topping $2 billion for the quarter. Now last month, Uber announced that Uber Eats would expand to cover 70 percent of the U.S. population by the end of the year. Company executives are pretty optimistic about the whole Uber Eats. It's gotten some pretty serious sensation.

BRIGGS: Have you tried it?

ROMANS: I have not. It's gotten my tongue.

BRIGGS: I have not either but friends swear by it.

ROMANS: Yes.

BRIGGS: Almost every night in their homes.

All right. EARLY START continues right now. As the elections continue eight days after the polls close.

A dark cloud surrounds the White House. The president's mood taking a turn for the worse after midterm losses and a public rebuke from his wife.

ROMANS: Democrats pick up two more House seats. But Nancy Pelosi's path to reclaim the speaker's gavel faces some new challenges.

BRIGGS: Election recount numbers are due today in Florida. Which major county could miss the deadline and what it means for some major races?

ROMANS: And get ready for an ugly day of commuting along the East Coast.