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Early Start with John Berman and Zoraida Sambolin

Federal Government Shutdown Looms; Texas Judge Strikes Down Obamacare; North Korea Lashes Out Over U.S. Sanctions; Inside "Hezbollah Tunnel" On Israel-Lebanon Border. Aired 5:30-6a ET

Aired December 17, 2018 - 05:30   ET

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


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[05:31:42] (BEGIN VIDEO CLIP)

STEPHEN MILLER, WHITE HOUSE SENIOR ADVISER FOR POLICY: We're going to do whatever is necessary to build the border wall.

SEN. CHUCK SCHUMER (D-NY), SENATE MINORITY LEADER: He is not going to get the wall in any form.

(END VIDEO CLIP)

CHRISTINE ROMANS, CNN ANCHOR: Five days to a government shutdown, no closer to a deal on the president's border wall. Now, questions about whether Republicans will even show up for a vote.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, ATTORNEY FOR PRESIDENT DONALD TRUMP: One hundred and thirty-thousand dollars to Stormy whatever and paying $130,000 to the other one is not a crime.

(END VIDEO CLIP)

DAVE BRIGGS, CNN ANCHOR: Not a crime? Well, Michael Cohen may disagree. Rudy Giuliani at odds with prosecutors.

Now, word big tech may not be doing enough to help the Russia probe.

ROMANS: Health care, once again, in limbo for tens of millions of Obamacare users. A Texas judge scraps the entire law, but would this ruling stand on appeal?

BRIGGS: And a big spike in the number of teens vaping nationwide, even as alcohol and other drug use decline.

Welcome back to EARLY START on a Monday, everybody. I'm Dave Briggs.

ROMANS: I was glad to see the opioid use declined but, boy, that vaping spike is really interesting.

BRIGGS: Yes, a huge spike in the last 30 days, in particular.

ROMANS: I'm Christine Romans. It is 32 minutes past the hour this Monday morning.

It is now less than five days until a partial government shutdown unless President Trump and Congress could reach a deal on funding for a border wall. The White House demanding $5 billion for the wall which, remember, the president said Mexico would pay for.

Congressional Democrats rejecting that request.

White House senior adviser Stephen Miller taking a hard line on "FACE THE NATION," echoing the president's demand.

(BEGIN VIDEO CLIP)

MILLER: We're going to do whatever is necessary to build the border wall to stop this ongoing crisis of illegal immigration. This is a --

MARGARET BRENNAN, MODERATOR, CBS NEWS, "FACE THE NATION": And that means a shutdown?

MILLER: This is a very -- if it comes to it, absolutely. This is a very fundamental issue. At stake is the question of whether or not the United States remains a sovereign country -- whether or not we can establish and enforce rules for entrance into our country.

(END VIDEO CLIP)

BRIGGS: But, "The New York Times" reports House Republican leaders have a more immediate problem. Members who are retiring or were defeated in November just don't want to show up to vote any longer. Many have been skipping votes since the midterms and GOP leaders are unsure if they'll ever return.

Senate Minority Leader Chuck Schumer says the president just doesn't have the support to get billions for his wall.

(BEGIN VIDEO CLIP)

SCHUMER: President Trump should understand there are not the votes for the wall in the House or the Senate. He is not going to get the wall in any form.

(END VIDEO CLIP)

ROMANS: If a partial shutdown happens at the end of the week, the consequences could ripple across the U.S. economy.

But, of course, nothing concentrates minds in Washington like a holiday. The president scheduled to leave this week for his Christmas vacation in Florida.

BRIGGS: Not just any vacation, a 16-day vacation at Mar-a-Lago, so the optics could be interesting.

Joining us this morning, Princeton University historian and professor, Julian Zelizer, a CNN political analyst. Good to see you, sir. JULIAN ZELIZER, CNN POLITICAL ANALYST, HISTORIAN AND PROFESSOR, PRINCETON UNIVERSITY, AUTHOR, "THE FIERCE URGENCY OF NOW": Good morning.

BRIGGS: Now, the House isn't even back until Wednesday afternoon, so that gives them less than three days. Are we likely to have a shutdown? And what about those optics of the president kicking back and playing golf for 16 days with a partial government shutdown?

ZELIZER: They're terrible. I think the only people who like the shutdown is President Trump and his base, which still supports him fighting --

ROMANS: Yes.

ZELIZER: -- for the wall.

The problem is there's a disconnect between that and many Republicans, at this point, who don't want this to happen, who aren't even voting, and who are thinking exactly of that -- images of the president vacationing while the government is shut down. And I think a lot of Republicans really don't want this to go through now.

[05:35:04] ROMANS: Although, there are Trump supporters in the Midwest, who I know, who say why do we need the government? We should shut down the government. Perfect to shut it down.

I mean, they --

ZELIZER: Yes.

ROMANS: -- really think that the president is on a moral high ground in some cases here, and I think some of the polling we saw this weekend from the "Des Moines Register" shows that.

But here's what the president -- a year ago this week, he was signing his signature -- legislative achievement into law -- the tax cuts, right? This is something that he really was proud of.

And now, fast-forward a year. The stock market is lower than it was at that time and Trump is under investigation on all fronts -- the Trump Organization, his foundation, the campaign, the transition, the inauguration, the administration.

How boxed in is he here?

ZELIZER: He's very boxed in. He doesn't necessarily mind being boxed in. I think this is a president who, in some ways, likes being in an adversarial position. He can pit himself as fighting -- but it's not good.

Going in, Democrats control the House. You have multiple fronts of investigations at this point and tremendous instability within the White House. So I think the people working around him are worried.

And again, it's a question between Trump and his base and the rest of the Republican Party at this time, and everyone is worried about where these investigations lead.

BRIGGS: Instability may also be the word that sums up health care in this country --

ZELIZER: Yes.

BRIGGS: -- after this ruling by a federal judge in Texas, ruling the entire thing unconstitutional. And the president celebrated this on Twitter as great news for America.

Susan Collins, Republican senator, not so fast -- listen.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS (R), MAINE: There's no reason why the individual mandate provision can't be struck down and keep all of the good provisions of the Affordable Care Act.

(END VIDEO CLIP)

BRIGGS: Another Republican senator, Roy Blunt, told "MEET THE PRESS" it has no immediate impact.

Are Republicans concerned at this ruling? The president may be celebrating it -- are Republicans fearing it?

ZELIZER: Republicans wanted this issue to go away at this point. When they pushed for repeal and replace, they lost -- and they lost really badly.

And then in the midterms, this was a big issue for Democrats running on it. So the last thing they want now is this case and the potential for the whole program, all of the sudden to shut down -- which would be a crisis of health care for millions of Americans.

So I don't think a lot of Republicans are celebrating right now but it's not necessarily in their control anymore -- it's in the courts.

BRIGGS: You could argue preexisting conditions was the central issue --

ROMANS: Yes.

BRIGGS: -- that Democrats ran on. It gave them 40 additional seats.

ROMANS: Let's talk about the president's personal attorney, Rudy Giuliani --

ZELIZER: Yes.

ROMANS: -- this weekend. I mean, he's trying to reframe what -- the legal jeopardy of this president in more political terms. Let's listen to how he explains these payments.

(BEGIN VIDEO CLIP) GIULIANI: It's not a crime. It's not a crime, George. Paying $130,000 to Stormy whatever and paying $130,000 to the other one is not a crime.

The Edwards case determines that. She was paid a $1.1 million to be a no-show in his campaign.

If there's another purpose, it's no longer a campaign contribution -- if there's a personal purpose.

Now, think about this. Supposed he tried to use his campaign funds to pay off Stormy Daniels. It would be totally illegal.

If it's not a campaign expense it can't be a campaign contribution. These are not campaign contributions.

GEORGE STEPHANOPOULOS, HOST, ABC "THIS WEEK WITH GEORGE STEPHANOPOULOS": But the corporate campaign --

(END VIDEO CLIP)

ROMANS: We're also learning more about how long into the campaign the president was -- or into the -- when the president was involved in the Trump Tower Moscow issue.

What do you make of that and Rudy Giuliani's performance yesterday?

ZELIZER: It's a total mess. I mean, it's interesting. Usually, in a scandal like this administrations are disciplined, they are focused. Everyone's on the same page as they fight back against the accusations.

This is the opposite of that. Giuliani is saying a million things -- he's saying them at the same time. And I think what you see is no one really has the same story, everyone isn't on the same page.

And, Giuliani, himself, is throwing everything out there trying to protect the president, even basically changing what the law is on television in describing what happened. And I think it reflects the chaos and the tone that the president has set in the Oval Office, and that's what the advisers are reflecting.

ROMANS: Does Mick Mulvaney, the new chief of staff -- acting chief of staff -- does he fix it?

ZELIZER: Absolutely not. That's an easy prediction. He will be like John Kelly, like Priebus -- the chiefs of staff that came before him. It's the same structure that he is going into and it's even worse because now, he is facing House Democrats coming at the administration.

We'll see if Mulvaney even keeps the job for a few months, at best.

BRIGGS: If he wants the job --

ZELIZER: If he wants the job. BRIGGS: -- should be the question ahead. It will be an interesting couple of days.

Julian, good to see you, sir.

ZELIZER: Yes, thank you.

ROMANS: Thanks, Julian.

BRIGGS: All right, also in the Russia probe, a damning new report due this week claiming Silicon Valley may have done the bare minimum to help the Senate's Russia investigation.

The Intelligence Committee commissioned a report from an online intel firm. The report claims social media companies could have done a better job providing data about Russian accounts that posed as Americans.

[05:40:05] ROMANS: And, "The Washington Post" has obtained a separate report prepared for the Intel Committee. It finds the Russians used every major social media platform to influence voters -- millions of voters -- to elect President Trump and worked even harder to support him once he was in office.

BRIGGS: All right. Coming up, new U.S. sanctions on North Korea could block the path to denuclearization forever. Strong new words overnight from Pyongyang. We'll have a live report, next.

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BRIGGS: North Korea lashing out over the U.S. decision to level sanctions against three of its senior-most government officials. In an editorial over the weekend, Pyongyang warned the sanctions pressure could very well block the path to denuclearization forever.

Will Ripley has reported many times for us from Pyongyang, live in Hong Kong with the latest.

[05:45:02] Will, these sanctions -- were they more symbolic?

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: Absolutely. It was -- you know, to add three more names to an already long list of North Koreans who are under sanctions doesn't have, necessarily, a tangible impact.

But to publicly shame, essentially, three officials who I've seen standing on stage next to Kim Jong Un at events in Pyongyang -- the head of the state security, organization guidance, propaganda and agitation -- it certainly is enough to irritate the North Koreans.

And you're seeing, in their messaging through state media, increasingly strong warnings not necessarily about these individual sanctions but the overall issue of sanctions pressure over North Korea's nuclear program.

And this really sensitive issue for them of human rights, which they say is nonexistent despite reports from the U.N. of thousands of people in labor camps and essentially, people being imprisoned or severely punished for simply speaking their mind if their views somehow don't match identically with what the government thinks they should be.

And, North Koreans have said that if the sanctions pressure continues from the United States that this is their red line. This could bring a return, potentially, to what we saw just a year ago -- North Korea launching missiles and conducting nuclear tests.

I don't think they want to do that. I don't think they want to see that happen. But at the same time, they are trying to tell the United States that if there isn't some movement, that's exactly what could happen.

But very interestingly, they continue to praise President Trump, Dave. Over and over again, they say that the sanctions are going against the will of the White House. They're clearly trying to play to President Trump's ego ahead of potentially that second summit, which could happen early next year, January or February.

BRIGGS: Yes, still has not ruled it out.

Will Ripley live for us in Hong Kong, thank you.

ROMANS: All right, now to a CNN exclusive -- a firsthand look at Israel's Operation Northern Shield along the border of Lebanon. Israel is trying to uncover and disable tunnels built by Hezbollah. There are fears the underground passageways could be used to mount attacks against civilians, as they were from Gaza.

CNN is the first broadcaster anywhere to go inside and our Ian Lee is live in Jerusalem with this extraordinary access. What did our team see?

IAN LEE, CNN FOREIGN CORRESPONDENT: Good morning, Christine.

The Israeli military took us right up next to the border and that's where we found this hole that they drilled down to the tunnel going down, dozens of yards past solid limestone that opens up into this tunnel. And, Israel says they wanted to be so close to the border so they could show how it originated inside of Lebanon and crossed into Israel. They are going to neutralize these tunnels as they find them.

But it wasn't what they saw that tipped them off to this tunnel but, rather, what they heard, and that's the vibration of digging through solid rock that tipped them off. They also have other sophisticated technology to locate tunnels along this roughly 75-mile border.

What Israel wants, though, is action within the U.N. Security Council. They say it violates U.N. Security Council resolution 1701 which ended the war between Hezbollah and Israel in 2006.

The U.N. says they're aware of the tunnels, they're investigating, and they'll present their results to the Security Council. Also, Christine, we've reached out to Hezbollah previously. They have not commented on it and they have neither confirmed nor denied that they are behind the tunnels, Christine.

ROMANS: All right. Ian Lee with some amazing access there -- Operation Northern Shield. Thank you so much for that.

Let's get a check on "CNN Business" this morning.

Global stock markets are mixed right now. You can see Tokyo and Shanghai were higher, but Hong Kong closed lower. Friday's economic data release missed expectations in China and that is still reverberating.

European markets slightly lower in early trade there.

On Wall Street, futures are higher after Friday's losses. Did you see what happened Friday? The Dow closed 497 points lower. The Dow is down almost three percent since the president's historic tax cuts, exactly a year ago.

The S&P 500, Friday, declined almost two percent. Now it's at the lowest level since April this year.

The Nasdaq fell 2.3 percent. The Nasdaq really the only one that's higher on the year, and barely. The Dow and the S&P are lower on the year.

Now, usually at the end of the year investors look forward to something called the Santa Claus Rally. Well, you've only got a few more trading days for that to happen and it doesn't look so hopeful, at least not yet.

All right, all eyes will be on Johnson & Johnson today after a Reuters investigation found it knew about asbestos in baby power for decades. And today, the company -- that's what the stock did on Friday. Today, the company has a full-page ad in the paper saying, "Science, not sensationalism" -- saying that its baby powder is safe.

That stock, though, really got hit -- the worst day since 2002 on Friday, on this Reuters report.

Johnson & Johnson has been dealing with lawsuits alleging some of its talcum powder products cause cancer. But, the Reuters report cites documents that indicate company executives, scientists, mining experts, and others knew about the problem and failed to disclose it to regulators or the public.

In a statement, Johnson & Johnson said this. "The Reuters article is one-sided, false and inflammatory. Johnson & Johnson's baby powder is safe and asbestos-free."

[05:50:07] I would encourage people to read the Reuters report, however. The Reuters reports is going back all the way to company --

BRIGGS: The early 70s. ROMANS: -- documents -- even as far back as the 50s, too.

BRIGGS: Yes.

ROMANS: So this is about decades in the past.

BRIGGS: Yes. It doesn't look like sensationalism. It looks live very detailed journalism.

We'll be right back.

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BRIGGS: A new report shows vaping among America's teens soaring this year. For high school seniors, the number is up some 50 percent in the last 30 days alone. That's compared to the same time period last year.

[05:55:00] The University of Michigan's Institute for Social Research found vaping was the second-most common substance in 2018. Officials say vigilance is needed because vaping could lead teens to other drugs. Use of other substances like alcohol and opioids has declined in recent years.

ROMANS: A congressional delegation heads to Lordsburg, New Mexico tomorrow. The group is getting a firsthand look at the Customs and Border Patrol facility where a 7-year-old Guatemalan girl was taken before she got sick and died this month.

The father of Jakelin Caal says he has no complaints about the treatment of his daughter by CBP. The father, though, is disputing a Homeland Security official's claim that his daughter had gone days without food and water. He says she was properly fed on their journey.

BRIGGS: California has dropped plans to tax text messages. The state hoped to add new monthly fees to increase funds for programs that bring connectivity to underserved residents, but the California Public Utilities Commission says a recent FCC ruling prevents the state from imposing that tax. The ruling determined text messages are an information service, not a telecommunications service.

The proposed tax faced strong opposition from industry trade groups which called it harmful to consumers.

ROMANS: A driver escapes unscathed after crashing his car into a home in Alabama -- oh, my goodness. Montgomery Fire and Rescue responded to this unbelievable wreck Sunday where a car ended up nearly vertical. Amazingly, neither the homeowners nor the driver were injured.

BRIGGS: Wow.

Co-founder and CEO of the hit gaming app HQ Trivia, Colin Kroll, found dead in his New York apartment Sunday morning. Police discovered Kroll in his bedroom after his girlfriend called police asking for a wellness check. Multiple reports say he overdosed.

Kroll became a big name in the tech world after co-founding Vine, the looping app that launched the careers of numerous social media stars. Twitter bought Vine in 2012.

Kroll was only 34 years old.

ROMANS: Expressions of love and support pouring in for "SATURDAY NIGHT LIVE" cast member Pete Davidson. New York City police conducted a wellness check on the comedian after he posted an alarming note on Instagram Saturday that said: "I really don't want to be on this earth anymore." Now, that Instagram account was later deleted.

(BEGIN VIDEO CLIP)

PETE DAVIDSON, CAST MEMBER, NBC "SATURDAY NIGHT LIVE": Once again, Mark Ronson and Miley Cyrus.

(END VIDEO CLIP)

BRIGGS: A lot of relief for fans when Davidson made that brief appearance late on "SNL" this weekend.

It's been a rough year for the 25-year-old. He went through that painful breakup with Ariana Grande in October, and had to apologize last month for mocking the appearance of Texas congressional candidate Dan Crenshaw, who lost his eye serving in Afghanistan.

ROMANS: All right. Imagine, if you will, a world where Donald Trump is not president. "SNL" tried with a takeoff on the classic "It's A Wonderful Life."

(BEGIN VIDEO CLIP)

ALEC BALDWIN, ACTOR, PORTRAYING DONALD TRUMP, NBC, "SATURDAY NIGHT LIVE": Wow, everyone looks so different. What are those things on their faces?

KENAN THOMPSON, CAST MEMBER, NBC "SATURDAY NIGHT LIVE": Those are called smiles.

BALDWIN: Brett Kavanaugh, how's the Supreme Court.

MATT DAMON, ACTOR, PORTRAYING SUPREME COURT JUSTICE BRETT KAVANAUGH, NBC, "SATURDAY NIGHT LIVE": Me, on the Supreme Court, with my temperament? Are you insane? No, no, they went with that nerd, Merrick Garland.

But on the plus side, when I tell people I like beer, they find it charming and not like I'm threatening violence.

BALDWIN: I've had an epiphany. I guess the world does need me to be president after all.

THOMPSON: Yes, that was not the lesson at all.

BALDWIN: I want to be president again. I want to be president again.

KATE MCKINNON, CAST MEMBER PORTRAYING KELLYANNE CONWAY, NBC "SATURDAY NIGHT LIVE": Listen, Donald. Every time a bell rings, someone you know quits or goes to jail.

(END VIDEO CLIP)

ROMANS: That's Kellyanne Conway.

BRIGGS: Yes.

The next morning, the president lumped "SNL" in with news shows and criticized what he called it's one-sided coverage, suggesting without any basis that it was defamation -- even going so far as to call it collusion there in the end.

TEXT: "A real scandal is the one-sided coverage, hour by hour, of networks like NBC and Democrat spin machines like Saturday Night Live. It is all nothing less than unfair news coverage and Dem commercials. Should be tested in courts, can't be legal? Only defame and belittle! Collusion?"

BRIGGS: Interesting tweet.

ROMANS: He once appeared on "SNL," I think. I think he used to be a fan. Now, he's not -- all right.

Thanks for joining us this Monday morning. I'm Christine Romans.

BRIGGS: I'm Dave Briggs. Here's "NEW DAY."

(BEGIN VIDEO CLIP)

GIULIANI: Paying $130,000 to Stormy whatever and paying the other one is not a crime.

UNIDENTIFIED FEMALE: The president has continued to weed these stories. He does not tell the truth.

UNIDENTIFIED MALE: The public needs to know exactly what happened.

SCHUMER: President Trump is not going to get the wall in any form.

MILLER: We're going to do whatever is necessary to stop this ongoing crisis of illegal immigration.

COLLINS: We have to prevent a government shutdown.

(END VIDEO CLIP)

ANNOUNCER: This is NEW DAY with Alisyn Camerota and John Berman.

JOHN BERMAN, CNN ANCHOR: Welcome to our viewers in the United States and all around the world. This is NEW DAY. It's Monday, December 17th, 6:00 here in New York.

You ready for this?

ALISYN CAMEROTA, CNN ANCHOR: I'm ready. I'm ready for a little ditty --

BERMAN: All right.

CAMEROTA: -- that you are about to share.

BERMAN: Here we go. 'Twas the week before Christmas and all through the house, everything was under investigation, including the mouse.

CAMEROTA: What?

BERMAN: So, mouse was all I could rhyme with house. But that doesn't obscure the fact that the list of Trump-related --