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Early Start with John Berman and Zoraida Sambolin
European Union Diplomatic System Hacked; Senate Working on Short Term Spending Plan; NYT: Facebook Allowed Access to User Data; Heroic Rescue in Texas; LeBron James Denied at the Rim. Aired 5-5:30a ET
Aired December 19, 2018 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALISON KOSIK, CNN ANCHOR: 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.
[05:00:06] The carrier is only available from the Popeye's at the Philadelphia International Airport. Something tells me you'll have --
DAVE BRIGGS, CNN ANCHOR: I was going to have a layover on my way home. No doubt. Nothing travels you more like traveling with greasy, fried, spicy food.
All right. EARLY START continues right now.
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KOSIK: Another major hack. This one targeting the European Union. Thoughts on the president, Russia, China, and more out in public this morning.
BRIGGS: Senate Republicans working on a short-term plan to avert a government shutdown Friday night. The White House reversing course on demands to fund 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 an amazing rescue for the ages caught on video in Texas. Two deputies rescue a man from a burning car.
It is an extraordinary news Wednesday. We've got the Michael Flynn sentencing delayed. We've got criminal justice reform in the Trump administration also shuttered. Some big news.
KOSIK: A lot going on.
BRIGGS: Welcome back to EARLY START. I'm Dave Briggs.
KOSIK: Good morning. I'm Alison Kosik, Wednesday, December 19th, 5:00 a.m. in the East.
And new this morning, "The New York Times" reporting that hackers infiltrated the European Union's diplomatic network monitoring its communications for years. The messages were discovered by the cybersecurity firm Area One. Now, CNN has now reviewed the documents yet but they do expose the biggest, most serious concerns of countries around the world.
So what's in these messages? Who broke into the E.U.'s diplomatic system?
Let's go to CNN's Samuel Burke joining us live from London.
This is the closest thing to being a fly on wall, to conversations from some world leaders.
SAMUEL BURKE, CNN CORRESPONDENT: Exactly, Alison. Arguably, President Trump has a different style interacting with his colleagues all around the world, different from any other president in the history of the United States. So, what do people really think, diplomats or other world leaders, when they walk away from some of these incredible interactions with President Trump?
Let's put up on the screen some of the most sensitive topics that we see starting with probably the most important to all of us, Trump's negotiations with China. President Xi quoted as saying "working with Trump feels like a no-rules freestyle boxing match. But he goes on to say in these cables that Beijing will not be bullied. That's the word used, even if it means a trade war hurts everybody.
Now when it comes to relations with Russia, these diplomatic cables say that a meeting between Trump and a president in Finland in July was successful for President Putin. Not necessarily for president Trump.
When it comes to Crimea, arguably another very important part when it comes to Russia elections, they say, most alarming, Crimea is a hot zone where nuclear warheads might have already been deployed.
And even though the U.S. has pulled out of the Iran deal, cables show European diplomats requesting finance for exports to Iran to entice the country to continue complying with the 2015 agreement.
I think at the end of the day, what you get from the cables is that they see the negative attitude, they call it, from Trump to the United States, to the European Union, rather, has created what they call a lot of insecurity.
KOSIK: Yes. Very eye opening.
So, walk me through how this hack is similar or different from the WikiLeaks hack that happened in 2016. I'm talking about the hack of the DNC.
BURKE: Of course. I think on the surface it might feel like WikiLeaks, especially in the scope. But cybersecurity firm Area One says these emails were accessed using techniques resembling those long used by an elite union of the China People's Liberation Army. It was just a simple phishing campaign aimed at diplomats in Cyprus of all places. That small island.
Phishing is just a very simple -- phishing is just a very simple message, you go to a website and think you're logging into your system. In reality, you're giving hackers your name and password so they can access these systems. And unlike WikiLeaks, those were high- level cables, these are low-level classified documents, sensitive, and they were never published, at least not by the people who hacked them.
Important to note that China's ministry of foreign affairs says "The New York Times" report is suspicious, groundless, and extremely irresponsible. They point out that Chinese companies are often hacked. That's certainly true, as well as U.S. companies and governments, as well.
KOSIK: You know, hearing President Xi describe President Trump's style as a no-rules freestyle boxing match really makes you wonder how these trade negotiations are going.
Samuel Burke, thanks so much.
BURKE: Indeed.
BRIGGS: All right. Another black eye for Facebook this morning. "The New York Times" reports the social network gave major tech companies much more access to people's data than it originally disclosed.
[05:05:06] The company was already reeling from a series of privacy scandals. Well, 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 friends' users -- users' friends. Facebook also gave Netflix and Spotify the ability to read users' private messages.
KOSIK: Facebook 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 the 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. 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 a border wall.
KOSIK: Republicans yesterday proposed $1.6 billion for border fencing with an extra billion for the president's immigration priorities. Democrats rejected that. Still, Majority Leader Mitch McConnell says he is sure there will not be a shutdown. Right now, the best way what the president supports to, what else, watch 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 at the White House -- thanks.
Some blunt and forceful words in court for Michael Flynn. Quote, I am not hiding my disgust. That's what the Federal Judge Emmet Sullivan said before delaying sentencing for Michael 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, it was evident in that courtroom. 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 sign aid letter of intent to move forward with negotiations to build a Trump Tower in Moscow of the letter is dated October 28th, 2015, and bears the president's signature. Asked on Sunday about the letter, Mr. Trump's lawyer, Rudy Giuliani, incorrectly told our Dana Bash it had not been signed. He has yet to explain that discrepancy.
Then-candidate Trump never told the public during the 2016 campaign that his company explored the deal. His company would have received a $4 million up-front fee and a percentage of the sales.
Criminal justice reform 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 opposed were 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.
KOSIK: We are just hours away from a major decision from the Federal Reserve on interest rates. The Dow closed 83 points higher on Tuesday. But an early rally mostly fizzled. The index had been up as much as 335 points.
[05:10:00] The S&P 500 was pretty much flat, while 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. The bear market and oil, that keeps getting worse amid worries about global growth and a supply glut. U.S. oil prices, they plummeted 7 percent to $46 a barrel. That's the lowest close for oil since august of 2017.
Now, today is an important day for Wall Street and the Federal Reserve. The fed is widely expected to raise interest rates for a fourth time this year. But investors are really going to be listening closely to what happens after the decision made. They'll be listening to Jay Powell to hear the strategy for the fed moving forward for 2019.
Keep in mind, President Trump has repeatedly attacked the Fed chair, Powell, and blames rate hikes for some of the markets' recent drops.
BRIGGS: President Trump's personal charitable foundation is folding up amid a lawsuit over its finances. The New York attorney general's suit claims 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 would use, quote, as little more than a checkbook to serve Mr. Trump's business and political interests.
The agreement to dissolve allows the A.G.'s office to review the recipients of the charities' assets. The largest donation, a $264,000 gift to the Central Park Conservancy in 1989. Even that appeared to benefit Mr. Trump's personal business. It paid to restore a foundation, a fountain, rather, 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. The largest donors to the foundation, the McMahons, Linda McMahon, is the small business administrator for the Trump administration. There's a lot that does not look good.
KOSIK: Even a portrait of Trump.
BRIGGS: The $10,000 portrait he purchased for himself for a golf club. That will be sold back. They say the value at $975.
KOSIK: He lowered that for obvious reasons.
OK. She was the creative genius behind classic scenes like this --
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KOSIK: Actor and director Penny Marshall has died. More on her legacy, next.
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[05:16:30] BRIGGS: The judge who sentenced serial sex abuser Dr. Larry Nassar will be reviewed for alleged bias. Michigan circuit judge, Rosemarie Aquilina, sentenced Nasser up to 175 years in prison for sexually abusing teenagers. Aquilina ripped into the former USA gymnastics doctor in court. She even imagined out loud what she'd do to him if not for the Constitution's ban on cruel and unusual punishment. Nasser's team said she showed bias trying to advance her own agenda.
KOSIK: Family, friends, and fans mourning the death of actress- turned-trailblazing director Penny Marshall. Marshall shot to stardom in 1980s, earning three Golden Globe nominations for playing Laverne in the classic sitcom "Laverne & Shirley" before going on to direct movies like "Big" starring Tom Hanks.
Marshall 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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KOSIK: Marshall grew up in the Bronx, the sister of legendary producer and director Garry Marshall. A family spokeswoman says Penny died in her Hollywood Hills home of complications of diabetes. She was 75.
BRIGGS: There's no crying in baseball! Legendary career.
All right. Two years ago, the football program at the University of Alabama Birmingham did not exist. This morning, the Blazers are bowl winners. Andy Scholes has the "Bleacher Report", next.
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[05:22:37] KOSIK: Welcome back. The video that you're about to see will terrify but will inspire you.
Two Texas deputies rescuing 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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KOSIK: That is why we call them heroes. Body cam footage from the accident last week shows Chambers County Deputies Braedon Boznango and Carlton Carrington running toward a burning car. The heat was so intense, Boznango's body cams partially melted. Still, the two officers dragged the unconscious man out. He is in stable condition.
BRIGGS: OK. Something that rarely happens in the NBA. LeBron getting stuffed at the rim.
Andy Scholes has more in the "Bleacher Report."
Good morning, Andy.
ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Yes, good morning.
You know, when LeBron's trucking through that lane it takes a lot of courage, you know, to go up and try to block him at the rim. You don't want to end up on a poster. Second-year center Jared Allen of the Nets up to the challenge. Here, the start of the game. He stumps LeBron.
According to ESPN that was the ninth time LeBron has been blocked on a dunk attempt in his career. And LeBron has dunked more than 1,800 times.
After the game, LeBron said of the block, he's in his 20s, I'm in my 30s. Takes me a little longer to get warmed up. LeBron had 36 in the 115-110 loss to the Nets.
Check this out, after the game, a fan ran on the court to take a selfie with LeBron. In spite of the frustrating loss, he take the phone and takes the pic himself. Pretty cool.
That said, not sure how the fan was able to just run up to LeBron on the court without being tackled by security.
All right. Two years after the football program was disbanded, the University of Alabama Birmingham has its first bowl win. The blazers beating Northern Illinois, 37-13, in the Boca Raton bowl last night. The football program was shut down following the 2014 season. But after public outcry and community support, that decision was reversed in June of 2015. An incredible comeback for UAB. The Blazers' won conference USA and finished with a record 11 wins.
[05:25:00] All right. Finally, Houston rockets are spreading holiday cheer by signing 10-year-old CJ Smith to a one-day contract. CJ was diagnosed with a rare type of non-Hodgkin's lymphoma earlier this year and continues to fight that cancer. With the help of the Make-A-Wish Foundation, CJ, he got to be part of the Rockets for a day.
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DARYL MOREY, ROCKETS GENERAL MANAGER: What I really liked is how James Harden and Chris Paul -- I mean, it makes their day, as well.
JAMES HARDEN, ROCKETS GUARD: Good time, man. He deserves it. Wanted to see how great his game is. See how he can contribute to tomorrow's game and help us.
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SCHOLES: He's going to be introduced with the Rockets in the pregame introductions tonight. He and his father will sit court side for the game against Washington. Here's hoping the Rockets will get a big win for CJ.
BRIGGS: Said the Rockets' fan Andy Scholes. The Make-A-Wish sports connection is a wonderful one.
Thank you, my friend. Good to see you.
Alison, back to you.
KOSIK: OK, Dave, thank you very much.
Revealing diplomatic messages from the European Union have been hacked. There are stunning revelation was diplomats about the president, about Russia, about China, and more.
And this may not shock you, but it should outrage you -- Facebook had deals with more than 150 companies that share more of your data than it suggested. Wait until you hear Facebook's explanation.
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