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NYT: European Union Diplomatic System Hacked; Senate Working on Short Term Spending Plan; NYT: Facebook Allowed Access to User Data; Heroic Rescue in Texas; Penny Marshall Dead at 75. Aired 4:30-5a ET
Aired December 19, 2018 - 04:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[04:31:55] ALISON KOSIK, CNN ANCHOR: Another major hack. This one targeting the European Union. Thoughts on the president, Russia, China, and more out in public this morning.
DAVE BRIGGS, CNN ANCHOR: Senate Republicans working on a short-term plan to avert a government shutdown. Friday night the White House reversing demands on the border wall.
KOSIK: Another disaster for Facebook. The social network struck deals with over 150 companies, giving them far more access to your data than it disclosed.
BRIGGS: And a rescue for the ages caught on video in Texas. Two deputies rescue a man from a burning car.
It's an extraordinary news day here on CNN. We've also got the Michael Flynn sentence being delayed. We've got criminal justice reform in the Senate. And the Trump foundation shuttered.
KOSIK: There's a laundry list.
BRIGGS: Wow.
Welcome back to EARLY START. I'm Dave Briggs.
KOSIK: Good morning. I'm Alison Kosik. It's 30 minutes past the hour.
And new this morning, "The New York Times" reporting that hackers infiltrated the European Union's diplomatic network, monitoring communications for years. The messages were discovered by the cybersecurity firm Area One. CNN has not reviewed the documents yet, but they exposed the biggest, most serious concerns of countries around the world.
So, what's in these documents, these messages, and who broke into the E.U.'s diplomatic system?
CNN's Samuel Burke joining us live from London.
I would say this is the closest thing we can get to being a fly on the wall, to hearing what our leaders are really talking about. SAMUEL BURKE, CNN CORRESPONDENT: Exactly, Alison. It gives insight
into the methods that President Trump has been using since he took office. And we can actually hear what world leaders feel when they walk away from some of these extraordinary meetings.
Let me just put up on the screen some of the major sensitive topics that we see in these cables, according to this "New York Times" report, starting with President Trump's negotiations with China. President Xi Jinping is quoted as saying that Trump's style is like a no-rules freestyle boxing match. But more importantly, Xi Jinping quoted as saying that Beijing will not submit to the bullying even if it means that the trade war is harmful for everybody.
On relations with Russia, European diplomats describe a meeting between Trump and Vladimir Putin back in July of this year in Finland as successful, but not for President Trump. They say it was very successful for President Putin.
And perhaps most alarming when it comes to Russian relations, they talk about Crimea in these cables and say it is an area that's become a hot zone where nuclear warheads might have already been deployed.
And even though the U.S. has pulled out of the Iran deal under President Trump, these cables show European diplomats requesting finance for exports to Iran just showing how the European union is trying to entice that country to continue to comply with the 2015 agreement even though the U.S. is no longer a part of that agreement -- Alison.
KOSIK: Samuel, walk us through how similar or different this hack is from the WikiLeaks hack that happened in 2016, the hack of the DNC?
[04:35:06] BURKE: Well, Area 51, the California cybersecurity firm that discovered the cables, are linking it to China. Now, they say basically what happened was methods were used that are techniques resembling those long used by an elite unit of the China People's Liberation Army. They say it was a simple phishing campaign.
Those are the emails that we might receive in our inboxes. They look like our company when we click the links. But it's actually an imposter trying to get our user name and password, and once you've given them that, they might have access to the system.
And unlike the WikiLeaks cables which were high-level classified documents, these were low-level classified documents, those sensitive nonetheless. It's important to point out that China's Ministry of Foreign Affairs say the reports like this in "The Times" are suspicious, groundless, and extremely irresponsible. They point out that China has been hacked itself which certainly many tech leaders have told me that in China.
But this looks like more of a case of espionage, foreign espionage unlike the WikiLeaks hacks which maybe were at the beginning a very different type of hack.
KOSIK: OK. Got it. So it's interesting to hear President Xi say President Trump's style is like a no-rules freestyle boxing match.
BURKE: Incredible. But I think it also -- it reflects some of those comments if accurate that Xi Jinping is quoted as saying close what we heard this week from China saying, well, look, we're not going to submit to these types of measures, and you were reporting from the stock floor many days as a result showing what happened as a consequence. It's just exactly these types of statements.
KOSIK: Yes, we can only imagine how the trade negotiations are going up this moment.
Samuel Burke, thanks so much.
BRIGGS: All right. Another black eye for Facebook. "The New York Times" reports the social network gave major tech companies much more access to people's data than it originally disclosed. The company was already reeling from a series of privacy scandals. Now hundreds of documents obtained by "The Times" detail among other things how Facebook allowed Microsoft's Bing search engine to see the names of virtually all Facebook users' friends. Facebook also gave Netflix and Spotify the ability to read users' private messages.
KOSIK: Facebook also allowed Amazon to obtain users' names and contact information through their friends and let Yahoo view friends' posts as recently as this summer. Some of those companies offering varying levels of denials overnight. In total, more than 150 companies benefited from these deals.
Facebook's director of public policy says none of the partnerships violated users' privacy. He says most of the partnerships did not require users' consent because Facebook considered the partners extensions of itself.
BRIGGS: Senate Republicans drafting a stopgap spending bill to head off a partial government shutdown. The measure would fund about a quarter of the federal government until February. But Some Republicans still want to negotiate a broader budget deal. Meanwhile, the White House appears to be backing off the president's demand for $5 billion to fund his border wall.
KOSIK: Republicans yesterday proposing $1.6 billion for border fencing, with an extra $1 billion for the president's immigration priorities. Democrats rejecting that. Still, Majority Leader Mitch McConnell says he is sure there will not be a shutdown. Right now, the best way to know what the president wants is to watch, what else, but his Twitter feed.
More from Kaitlan Collins at the White House.
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KAITLAN COLLINS, CNN WHITE HOUSE CORRESPONDENT: Well, Dave and Alison, the White House seems to be signaling that President Trump may be backing off that demand for funding for his border wall, easing fears in Washington that there is going to be a partial government shutdown on Friday. Now, Trump hasn't gone as far as White House officials have, telling reporters only we'll see if there's going to be a shutdown. But aides like the press secretary, Sarah Sanders, seem to be offering a glimpse of hope that they will come to some kind of compromise and that the government will not shut down on Friday.
But during the briefing on Thursday, Sanders was trying to explain how they could get the border wall build and funded without taxpayers having to pay for it, though her reasoning seemed to raise a few eyebrows.
SARAH HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: We're not asking American taxpayers for that. We are looking at existing funding through other agencies right now that we can draw on to do that in the -- immediately. The president's been clear, the president has been clear that the USMCA deal would provide additional revenue through that deal that would show that Mexico is paying for the wall.
COLLINS: Sanders making the argument that they could use funding from agencies, though that funding that agencies have is taxpayer money. So the White House seems to be struggling to say that the American taxpayer is not going to be paying for this wall and, instead, Mexico is going to be paying for it as President Trump argued multiple times while on the campaign trail -- Dave and Alison.
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BRIGGS: Kaitlan Collins, thank you.
Blunt and forceful words in court for Michael Flynn.
[04:40:03] I am not hiding my disgust. That's what Federal Judge Emmet Sullivan said before he delayed sentencing for Flynn lying to the FBI. At Sullivan's urging, the former national security adviser asked to postpone. Flynn wants more time to cooperate with federal investigators.
KOSIK: Special counsel Robert Mueller's team suggested little to no prison time for Flynn. But Sullivan's frustration was evident, his voice growing harsh as he vilified Flynn. The judge ordered Flynn to stay within 50 miles of Washington and surrender his passport in January.
BRIGGS: CNN has obtained a document showing President Trump signed a letter of intent to move forward with negotiations to build a Trump Tower in Moscow. The letter is dated October 28, 2015, and bears the president's signature. Asked on Sunday about the letter, Mr. Trump's lawyer, Rudy Giuliani, incorrectly told Dana Bash it had not been signed. He has yet to explain the discrepancy.
Then-candidate Trump never told the public during that his company explored the deal. His company would have received a $4 million up- front fee and a percentage of the sales.
KOSIK: This morning, we're learning more about the mysterious court case involving a grand jury subpoena believed to be from Robert Mueller. A judge now ordering an unnamed foreign company to comply with the subpoena. We know the Justice Department has asked the firm to turn over information about its commercial activities.
Last Friday, lawyers from both sides argued secretly in front of three judges on the U.S. court of appeals for the D.C. Circuit. We don't even know who the lawyers were. An entire floor of the federal courthouse was locked down by security for the hearing.
BRIGGS: Criminal just reform is close to becoming reality. The Senate overwhelmingly passed a bill that eases sentences for nonviolent offenders, hoping to reduce recidivism and the federal prison population. All the senators oppose the Republicans who feel the reforms go too far and could allow dangerous criminals back into society. The House likely to take up the bill today and approve it, sending the bill to the president who's also expressed support.
The Trump administration reversing a controversial fingerprint policy. Immigration advocates say it caused a major delay, processing thousands of unaccompanied migrant children. The Department of Health and Human Services no longer requiring fingerprint checks for all adults in a sponsor's household. The sponsors themselves must still be fingerprinted and subjected to a background check.
HHS says fingerprinting everyone in the household is not generally revealed additional risks to unaccompanied children. The fingerprint requirement also spooked potential sponsors from stepping forward.
KOSIK: President Trump's personal charitable foundation is folding up amid a lawsuit over its finances. The New York attorney general's suit claiming the president and his three eldest children abused the foundation's tax-exempt status and violated campaign finance laws by coordinating with the 2016 campaign. The suit alleges the foundation was used, quote, as little more than a checkbook to serve Mr. Trump's business and political interests.
BRIGGS: The agreement to dissolve allows the A.G.'s office to review the recipients of the charity's assets. The largest donation, a $264,000 gift to the Central Park Conservancy in 1989. That appeared to benefit Mr. Trump's business. It paid to restore a fountain right outside Trump's Plaza Hotel.
An attorney for the charity called the A.G.'s statement misleading, saying the foundation had been trying to dissolve since Trump's election but was blocked by the A.G. Among the most famous purchases, that $10,000 portrait of Donald Trump himself that went in one of his golf clubs.
KOSIK: Yes. That's not all. It amazing to see the list of entitlements he gave himself, through his charitable organization.
BRIGGS: A Tim Tebow autographed Broncos helmet among my favorite items.
Ahead, she was the creative genius behind classic scenes like this --
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BRIGGS: Actor and Director Penny Marshall has died. More of her lasting legacy next.
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[04:48:33] KOSIK: The head of the military's special operations forces is launching a review after a series of high-profile missteps involving members of the elite units. In an e-mail obtained by CNN, General Raymond Thomas warns all special ops personnel about the dangers of unethical behavior. Steps to address the issue will include a closer look at trauma and mental health, as well as a review of ethics and professionalism.
Recently, a U.S. Navy SEAL was charged with murder and shooting at civilians while serving in Iraq. Two other Navy SEALs and member of an elite Marine Corps unit were charged in November in connection with the murder of an Army Green Beret in Mali.
BRIGGS: Family and friends and fans around the world mourning the death of actress turned trailblazing director Penny Marshall. Marshall shot to stardom in the 1980s, earning three Golden Globe nominations for playing Laverne in the classic sitcom "Laverne & Shirley", before going on to direct hits like "Big" starring Tom Hanks.
Marshall then found huge success with the women's baseball comedy "A League of Their Own." In an interview, Marshall explained why she wanted to make that film.
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PENNY MARSHALL, ACTRESS/DIRECTOR: No girl wanted to write it. They don't like baseball.
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BRIGGS: Marshall grew up in the Bronx, the sister of legendary producer and director Garry Marshall.
[04:50:00] A family spokesman says Penny died in her Hollywood Hills home of complications from diabetes. She was 75.
KOSIK: Finish the sentence, schlemiel schlimazel --
BRIGGS: That's all you --
KOSIK: Hosenfeffer, inc.
BRIGGS: There's no way I would stick that ending, my friend. I know when to avoid a disaster.
KOSIK: All right. It's been revealed, George Herbert Walker Bush sponsored a 7-year-old boy in the Philippines for 10 years, using a phony name. The late former president was connected to Timothy through Compassion International. That's a nonprofit that works with local churches to help children in poor communities. Mr. Bush sent letters and money to fund the boy's education, extracurricular activities, and meals. BRIGGS: The first letter sent to Timothy is dated January 24th, 2002.
It says in part: I'm an old man, 77 years old, but I love kids. And though we have not met, I love you already. I live in Texas, I will write you from time to time. Good luck, G. Walker.
In a letter to Mr. Bush in 2003, Timothy writes: I would like to thank you for not forgetting me. You're so nice and good. God is so good to us. He gives us the body and will to get to where we want to go.
Timothy did not learn the real identity of his sponsor until he graduated from the program in 2012.
KOSIK: That is sweet.
BRIGGS: That is terrific. That is a story we need this morning.
OK. Ahead, there are emotional support dogs, but what about an emotional support snack? Popeye's latest innovation in CNN business, next.
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[04:56:13] BRIGGS: Four-fifty-six Eastern Time. This is a video that will terrify you but inspire you. Two Texas deputies rescue a man from a burning car.
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UNIDENTIFIED MALE: Sir?
UNIDENTIFIED MALE: Hurry.
UNIDENTIFIED MALE: Sir? Give me your arms.
UNIDENTIFIED MALE: Hurry.
UNIDENTIFIED MALE: Carlton, I need your help. It's too hot.
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BRIGGS: Body cam footage from the accident last week shows Chambers County Deputies Braedon Boznango and Carlton Carrington running toward a burning car. The heat so intense, Boznango's body was partially melted. Still, the two officers dragged the unconscious man was dragged out. He is in stable condition.
KOSIK: Amazing stuff.
Fifteen survivors of the Parkland massacre have been told their school and sheriff did not have a constitutional duty to protect them. Federal Judge Beth Bloom dismissing a lawsuit they filed. The students argued the school district and sheriff's office failed to protect them from gunman Nikolas Cruz who was known to be dangerous.
But the judge ruled the students would have to be considered in custody to be constitutionally protected from Cruz. Seventeen people were killed in the Parkland massacre.
BRIGGS: More than a dozen companies pulling or suspending advertising from Tucker Carlson's Fox News program. Activists and organizations pressured sponsors to pull out over comments about immigration Carlson made last week. On Thursday night, he told viewers mass immigration, quote, makes our country poorer, dirtier, and more divided. And he defended those remarks on Monday night.
Fox News is backing Carlson saying, quote, we cannot and will not allow voices like Tucker Carlson to be censored by agenda-driven intimidation efforts.
KOSIK: All right. Let's get a check on CNN Business this morning.
Global markets mixed ahead of the Federal Reserve's decision on interest rates. In Asia, the Nikkei closed down over half a percent, the Shanghai closing down 1 percent, the Hang Seng closing fractionally. European markets are mixed as markets open there.
On Wall Street, we are seeing green arrows before the bell. The Dow closed 38 points higher on Tuesday. And the S&P 500 ended virtually unchanged. The Nasdaq gained a fraction.
Both the Dow and the S&P 500, they remain on track for their worst December since the Great Depression. This as all eyes will be on the Federal Reserve this afternoon. The Fed is widely expected to raise interest rates for a fourth time this year.
Imagine traveling underground in Los Angeles at 150 miles per hour. Tesla CEO Elon Musk has debuted a prototype for his tunnel venture, the Boring Company, in Hawthorne, California. So, last night, guests were invited to take a cool-looking demo ride inside the subterranean tube at 40 miles per hour. Musk made sure to tell everybody he hopes the cars reach 150 miles an hour.
Musk also plans for these cars to access -- for cars actually to access the tunnels using ramps and elevators. And his ideas are around the world. According to the Boring Company, fares are not finalized but will be comparable to or lower than public transportation fares for pedestrians. I wonder if it will do any better than the MTA here in New York.
BRIGGS: That's a low bar, my friend.
KOSIK: I know.
BRIGGS: Very low bar.
KOSIK: I know.
All right. You can fly with your emotional support dog, not your peacock, of course. What about an emotional support snack?
Popeye's announced they're launching emotional support chick tones help offset -- chickens to help offset stress that comes with traveling at the holidays. You won't be seeing feathers your flight. The fast food chain is serving their three-piece chicken tenders combo in carrier that looks like a chick to give travelers a good old fashioned hearted laugh. The career is only available from the Popeye's at the Philadelphia International Airport.
