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Mueller: No Prison for Flynn; State Funeral Today for George H.W. Bush; Trade Concerns Send Stocks Plummeting; Senators Furious After CIA Khashoggi Briefing. Aired 4-4:30a ET
Aired December 05, 2018 - 04:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[04:00:13] DAVE BRIGGS, CNN ANCHOR: Don't lock him up. Robert Mueller recommends no prison time for Michael Flynn because of substantial help with the special counsel.
CHRISTINE ROMANS, CNN ANCHOR: It is a National Day of Mourning. A state funeral this morning for the late President George Herbert Walker Bush.
BRIGGS: Stocks take a big tumble. Wall Street realizes the trade war with China is far from over.
(BEGIN VIDEOI CLIP)
SEN. BOB CORKER (R), TENNESSEE: If he was in front of a jury, he would be convicted in 30 minutes.
SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: There's not a smoking gun, there's a smoking saw.
(END VIDEO CLIP)
ROMANS: Republican senators furious after a CIA briefing on the Jamal Khashoggi murder. The relationship now with Riyadh under renewed scrutiny.
Good morning and welcome to EARLY START. I'm Christine Romans.
BRIGGS: I'm Dave Briggs. Good friend, my friend. Good morning to all of you.
Wednesday, December 5th. It is 4:00 a.m. in East.
Much of what we want ton-- we want to know is behind bars with special counsel Robert Mueller recommending no jail time for President Trump's former national security adviser, Michael Flynn, because of, quote, substantial help in the Russia probe. Much of what Flynn told the special counsel remains shrouded in secrecy. The report was heavily redacted, but Mueller does say, quote, Flynn's early cooperation convinced others to be forthcoming and that Flynn's lies about his contacts with the Russian ambassador in late 2016 were repeated by senior Trump transition team members.
ROMANS: Flynn's full account of events has been one of the best-kept secrets in Washington as Mueller puts together the final pieces of his case.
More now from CNN's Sara Murray in Washington.
(BEGIN VIDEOTAPE)
SARA MURRAY, CNN POLITICAL CORRESPONDENT: Good morning, Christine and Dave.
President Trump's former national security adviser Michael Flynn has provided, quote, substantial assistance to the Russia investigation and should not get jail time. That's the big news from special counsel Robert Mueller's court filing on Tuesday night. Now the filing, a sentencing memo, comes after Flynn has cooperated with Mueller's team for more than a year, sitting for 19 interviews with the special counsel and other Justice Department offices.
The memo appears to show that Flynn help the Justice Department with at least three ongoing investigations. References to two of the investigations are almost completely redacted.
Now, Flynn also cooperated with the special counsel's investigation into links or coordination between the Russian government and members of the Trump campaign, as well as interactions between the Trump transition team and Russia. The Flynn revelations come amid this flurry of activity from the special counsel's team.
Last week, Trump's former personal attorney Michael Cohen pleaded guilty to lying to Congress. And prosecutors accuse former Trump campaign chairman Paul Manafort of lying to the special counsel and violating his cooperation agreement.
Now, as for Flynn, he was a fixture with Trump on the 2016 campaign trail, even leading a "lock her up" Hillary Clinton chant at the Republican National Convention. His stint as a national security adviser in the White House, though, that was brief. He was fired more than two weeks after then Acting Attorney General Sally Yates told the White House that Flynn lied about his communications with the Russian ambassador and could be blackmailed by the Russians.
Flynn is set to be sentenced on December 18th in D.C. federal court.
Back to you, guys.
(END VIDEOTAPE)
ROMANS: All right. Sara, thank you for that.
Trump lawyer Rudolph Giuliani is apparently not concerned about Michael Flynn sharing anything with the special counsel Robert Mueller's team that could implicate the president. Giuliani telling NBC News, quote, they don't have bupkis. He said if Flynn had information that could hurt the president, you would know it by now.
BRIGGS: #Bupkis.
President Trump's ally Roger Stone invoking his Fifth Amendment rights, refusing a request from the top Democrat on the Senate Judiciary Committee for documents and an interview in the Russia investigation. President Trump tweeted Monday that Stone had, quote, guts for saying he wouldn't testify against the president in the special counsel's Russia probe. But don't forget what the president said in the past about people who do take the Fifth.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Have you seen what's going on in front of Congress? Fifth Amendment, Fifth Amendment, Fifth Amendment. Horrible, horrible.
The mob takes the Fifth. If you're innocent, why are you taking the Fifth Amendment?
When you have your staff taking the Fifth Amendment, taking the Fifth so they're not prosecuted, I think it's disgraceful.
(END VIDEO CLIP)
BRIGGS: Stone's attorney says the request from Senate Democrats for information are far too overreaching and far too wide ranging. Stone has already testified before the House Intelligence Committee.
ROMANS: It is a National Day of Mourning in the United States. Today, former President George Herbert Walker Bush will be honored with a state funeral at the national cathedral. Thousands of friends, former colleagues, and everyday Americans have been lining up to pay their final respects at the Capitol Rotunda where Bush 41 has been lying in state.
[04:05:03] Last night, members of the Bush family returned to the rotunda. George W. Bush and his wife Laura pausing at the casket and later greeting members of the public.
BRIGGS: Earlier in the day, a poignant emotional moment as former Senator Bob Dole helped out of his wheelchair for a final absolutely to the former president, and a moment that brought a smile to many people's faces. Sully, the president's loyal service dog, pausing before his casket.
Today, current and former presidents and world leaders will attend a service to commemorate the life of America's 41st president. On Tuesday, First Lady Melania Trump hosted a White House tour for about 20 members of the Bush family. Tonight, Mr. Bush's family will be taken back to his home state of Texas where he will lie in repose until he is buried tomorrow.
ROMANS: All right. U.S. financial market will be closed to honor the memory of the former President George H.W. Bush. But yesterday, what a day. The Dow fell 799 points. That's 3.1 percent. It was the Dow's worst day since October 10th this year when it lost 832 points.
The Nasdaq closed down 3.8 percent. Those are big one-day moves. The S&P 500 fell 3.2 percent. Now, let's put some perspective around this, 799 points sounds really
scary. In point terms it was the fourth largest drop in history. But in percentage terms, that's 3.1 percent. Certainly, a very bad day, but it ranks as only the 329th worst day ever percentagewise.
Two things took down stocks. First, the realization of the trade war with China, it's not over. There's a mountain of hard work to do. The president's boasting that China was willing, for example, to move on auto tariffs and would buy a bunch of U.S. agriculture products, that boasting was not match by the Chinese rhetoric.
Second, a technical move in the bond market that in the past has signaled a slowing economy or a recession. It's called an inverted yield curve. It means interest rates on shorter date maturities are higher than longer term issues. It's a technical move and it's getting a lot of attention. And hat in turn scared the stock market, too.
But take a look at where stocks are year to date. Always important for perspective. The Dow is up 3.5 percent. The S&P 500 up almost 3 percent. The Nasdaq composite up more than 6 percent.
So, the major averages still positive on the year even after all that drama and turmoil in October and again yesterday.
BRIGGS: It's just unusual as you read the "Wall Street Journal" and hearing the word "recession" even though it's saying we're not entering a recession, uncomfortable to hear --
ROMANS: It is. Sometimes when the yield curve inverts, the recession comes two or three years later.
BRIGGS: But it always has. Every time. Every time we've had a recession, that inverted yield curve has foretold it.
ROMANS: It is a powerful signal further out. Yes.
BRIGGS: All right. Republican senators outraged after a classified briefing from CIA Director Gina Haspel about the murder of "Washington Post" journalist Jamal Khashoggi. Bob Corker of Tennessee and Lindsey Graham of South Carolina leading the charge against Saudi Crown Prince Mohammed bin Salman. They want him held accountable for his involvement in the killing of that "Washington Post" journalist.
(BEGIN VIDEO CLIP)
CORKER: I have zero question in my mind that the crown prince, MBS, ordered the killing, monitored the killing, knew exactly what was happening, planned it in advance. If he was in front of a jury, he would be convicted in 30 minutes.
GRAHAM: There's not a smoking gun, there's a smoking saw. You have to be willfully blind not to come to the conclusion that this was orchestrated and organized by people under the command of MBS, and that he was integrally involved in the demise of Mr. Jamal Khashoggi.
(END VIDEO CLIP)
BRIGGS: Senator Graham went on to say he can no longer do business with Saudi Arabia if the crazy crown prince is still running the country.
Let's go live to Abu Dhabi and bring in CNN's Sam Kiley.
Sam, good morning.
SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning.
What a shocking series of revelations that have been reinforced for the Turkish position there, suggesting from none other than the head of the CIA that there is a direct and causal link between Mohammed bin Salman, the crown prince of Saudi Arabia, and the murder allegedly of Jamal Khashoggi. Now this doesn't come as a massive surprise given the amount of leaking, but particularly that the Turks have done -- but I think it does, does it not, make things very difficult indeed for Donald Trump and his continued support for MBS, and more broadly for the Saudi government's campaign in Yemen where right now, most of the belligerence in that war are beginning to gather in Stockholm, Sweden, for talks that may take some time.
[04:10:03] But, of course, the United Nations warning that some 14 million people could be threatened with starvation there. So if there is a silver lining to the murder of Jamal Khashoggi, it may well derive from waning support for Saudi Arabia and Saudi Arabia recognizing that this war in Yemen has become pretty toxic.
BRIGGS: All right. Sam Kiley live for us, past 1:00 p.m. in Abu Dhabi. Thank you.
Back here at home, the former mayor of New York City, Michael Bloomberg, has a message for Democrats -- now that you've won the House, do something. Bloomberg spent more than $110 million to help Democrats take control of the House in the midterm elections. He's considering a run for president in 2020 and spoke exclusively to CNN Tuesday during a day-long trip to Iowa, a crucial early voting state.
(BEGIN VIDEO CLIP)
MICHAEL BLOOMBERG, FORMER NEW YORK CITY MAYOR: Now, this new Congress has to do something. If they sit back and do the same thing that the people they ousted did, then I'm not going to be happy. And I've told Nancy Pelosi that.
(END VIDEO CLIP)
ROMANS: Bloomberg also had harsh words for President Trump, contrasting him with the late Bush 41.
(BEGIN VIDEO CLIP)
BLOOMBERG: The current president doesn't seem to have any feeling of sacrifice for the good of the country. And maybe that's one of the real differences. It's not policy, it's how you purport yourself. (END VIDEO CLIP)
ROMANS: Bloomberg was in Iowa promoting his new documentary on climate change. He says he will not decide on 2020 run until early next year.
BRIGGS: Two potential Democrat candidates for president in 2020 are pulling out. According to "Politico", former Massachusetts Governor Deval Patrick is calling close allies to tell them he's not running. He informed staffers and advisers of that decision on Tuesday.
Also, attorney Michael Avenatti ruling out a 2020 bid. Stormy Daniels' lawyer says he made the decision at the request of his family but remains concerned the Democratic Party will nominate someone who has no chance of beating President Trump.
As for who remains in the field, Jimmy Fallon weighed in.
(BEGIN VIDEO CLIP)
JIMMY FALLON, COMEDIAN: The new poll found that the top three Democratic contenders for president in 2020 are Joe Biden, Bernie Sanders, and Beto O'Rourke.
(CHEERS)
Biden's got the best experience. Bernie's got the best fund-raising. Beto's got the best chance of being alive in 2020.
(END VIDEO CLIP)
ROMANS: Ba-dum-bump. There will be a big discussion on age if you continue to say the talk -- look, how old is Donald Trump today? Seventy-two?
BRIGGS: Seventy-two. Four years younger than Joe Biden I do believe.
ROMANS: All right. They didn't complain when they were in power, but Republicans in Wisconsin and Michigan are trying to strip power from incoming Democratic leaders.
(COMMERCIAL BREAK)
[04:16:51] ROMANS: Republicans in the swing states of Wisconsin and Michigan under fire for trying to strip away the power of incoming Democratic leaders.
In Wisconsin, Republicans are conducting an extraordinary session to limit the power of incoming Democratic Governor Tony Evers and Attorney General Josh Kaul. They are trying to acquire legislative approval for decisions traditionally made by the governor and attorney general, including a promise to withdraw the state from a federal lawsuit against Obamacare.
BRIGGS: Republicans defending the power grab even though the issue was never raised when they won statewide offices. (BEGIN VIDEO CLIP)
ROBIN VOS (R), SPEAKER, WISCONSIN STATE ASSEMBLY: The number-one priority for us is to make sure we restore the balance of powers between the two co-equal branches of the government.
SEN. SCOTT FITZGERALD (R), WISCONSIN SENATE MAJORITY LEADER: I'm concerned. I think that Governor-elect Evers is going to bring a liberal agenda to Wisconsin. And that --
(CROSSTALK)
(END VIDEO CLIP)
BRIGGS: Republicans in Michigan are also using a lame duck session to rewrite the rules. They could step in to defend a law allowing religious groups to refuse to place children up for adoption with same-sex couples. Incoming Democratic Attorney General Dana Nessel has suggested she might not back that law in court.
ROMANS: Those are big stories in Michigan and Wisconsin.
All right. The inspector general at the Department of Justice confirms a senior official was allowed to retire after sexually assaulting a subordinate. The I.G.'s report says the unnamed official sexually harassed multiple female subordinates but was never prosecuted. In one instance, the official allegedly pressured an employee to have sex with him in exchange for a promotion.
The I.G. concludes the official's actions amounted to ethical misconduct, sexual harassment, and sexual assault in violation of the law. But only says prosecution was declined without further explanation.
That's an outrage. A lot more to know about that one.
BRIGGS: All right. Ahead, a little man with a big heart will host the Oscars in 2019. We'll tell you.
(COMMERCIAL BREAK)
[04:23:20] BRIGGS: A dispute between the NFL and Cleveland police over when the league asked to see surveillance video of Kareem Hunt's altercation with a woman at a hotel. Police say the NFL did not make a formal request until November 30th, the same date TMZ posted the video on its website. But a league spokesman claims there were multiple conversations with Cleveland police officers and a request for the video was made back in February.
Hunt was cut by the Kansas City Chiefs when the video was made public. He's cleared waivers and has apologized, insisting he deserves another chance.
ROMANS: Lawyers hired by CBS to investigate sexual misconduct claims against ex-CEO Leslie Moonves, a cause to withhold a $120 million payout. According to "The New York Times", their draft report says Moonves was evasive, deliberately lied, minimize the extent of his sexual misconduct and destroyed evidence. The report is said to have alleged multiple act of nonconsensual sexual misconduct in and outside of the workplace both before and after he came to CBS in 1995, including sex acts with at least four CBS employees under circumstances that sound transactional. More than a dozen women have accused Moonves of sexual misconduct. He denies all allegations.
BRIGGS: Salmonella concerns are expanding an already massive beef recall. JBS Tolleson recalling more than 5.9 million pounds of raw beef pushing the recall to more than 12 million pounds. The recalled beef was produced and packaged between July 26th and September 7th and then distributed nationwide. The beef linked to an outbreak of salmonella that has sickened nearly 250 people in 25 states.
[04:25:05] For the information, go to CNN.com.
ROMANS: All right. It is a longtime dream come true for comedian Kevin Hart. He's been chosen to host the 2019 Academy Awards. Hart succeeds Jimmy Kimmel who hosted the last two Oscar ceremonies. He's previously hosted the BET Awards in 2011 and the 2012 MTV Video and Music Awards.
Hart says in an Instagram post that he was blown away by the opportunity adding now it's time to rise to the occasion. The 91st Oscars will air live on ABC on February 24th.
BRIGGS: It's really good to see Kevin Hart get some work. He's only been in ten movies since 2016. He's in everything.
All right. Ahead, a lot of the report is behind black bars, but Michael Flynn won't be. Why Robert Muller says the former national security advisor should avoid prison time.
ROMANS: And world leaders, friends, and family get ready to say good- bye. A state funeral today for the late 41st President George Herbert Walker Bush.
(COMMERCIAL BREAK)
