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Early Start with John Berman and Zoraida Sambolin
Wall Street Hoping to Rebound; Trump Wallows in Grievance for Christmas; CBP Promises Changes After Another Migrant Child Dies; Wintry Weather Could Affect Holiday Travel; LeBron Hurt in Lakers Win Over Warriors. Aired 5-5:30a ET
Aired December 26, 2018 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CHRISTINE ROMANS, CNN ANCHOR: Here's why -- some chains like Victoria's Secret use computerized return authorization systems to detect abuse.
[05:00:03] They can also determine how many times a customer has returned items.
So, if you're a frequent returner, you may have scrutiny. You may be asked to show your driver's license or other ID when you return an item in person.
JOE JOHNS, CNN ANCHOR: Ties and men's cologne. Love to take it back.
ROMANS: Yes. Exactly. You don't re-gift?
JOHNS: No. Not so much.
EARLY START continues, starting right now.
(MUSIC)
ROMANS: Can Wall Street bounce back from the worst Christmas eve ever? Will there be fewer confusing signals from this White House? The president still railing against the Fed, and he's running low on patience with his treasury secretary.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: It's a disgrace what's happening in our country. But other than that, I wish everybody a very merry Christmas.
(END VIDEO CLIP)
JOHNS: Little Grinchy there. Christmas lump of coal from the president. No end in sight for the government shutdown. Now in day five.
ROMANS: For the second time this month, a migrant child degrees at the border. Overnight, customs promises changes.
JOHNS: And strong winds, heavy rain, even snow set to impact millions. A system moving across the east could slow a record number of holiday travelers.
Good morning, and welcome to EARLY START. I'm Joe Johns. I'm not Dave Briggs.
ROMANS: I know. It says "Dave Briggs." It says "Joe Johns" there. I'm Christine Romans.
It's nice to see you, Joe Johns. It is Wednesday, boxing day. European stock markets are closed. It is 5:00 a.m. in the East.
All right. Can Wall Street recover after suffering the worst Christmas Eve declines ever? Markets fell off the Trump administration sent out confusing signals about markets and the economy. U.S. futures are lower.
In Asia, the Nikkei closed up nearly 1 percent after being down 5 percent Christmas Day. The Shanghai closed down slightly. Hong Kong's market closed for a public holiday. European markets are closed, as well.
Stocks fell Christmas Eve. The president renewed his attacks on the Federal Reserve tweeting the only problem our economy has is the fed. And president Trump is growing more frustrated with his treasury secretary, Mnuchin, despite Mnuchin's attempt to calm Wall Street. A source told CNN Mnuchin could be in serious jeopardy with this president. The president vouched for him publicly, shifting blame for the market volatility to the Federal Reserve instead.
(BEGIN VIDEO CLIP)
REPORTER: Do you still have confidence in Secretary Mnuchin?
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Yes, I do. Very talented, very smart person.
REPORTER: What about the Fed chairman?
TRUMP: We'll see. They're raising interest rates too fast. That's my opinion. But I certainly have confidence.
But I think it will straighten. They're raising interest rates too fast because they think the economy is so good.
The economy is doing so well that they raised interest rates, and that's a form of safety in a way. President Obama didn't do much of that, much easier to run when you have no interest rate. He had a very low interest rate.
I have great confidence in our companies. We have companies, the greatest in the world and they're doing really well. They have records kind of numbers. So, I think it's a tremendous opportunity to buy.
(END VIDEO CLIP)
ROMANS: The jab at Obama there. You know, President Obama didn't control interest rates. President Trump doesn't either. And apparently, President Trump doesn't like it that he doesn't control interest rates.
Investors do not like the president's repeated attacks on this Fed. The "Wall Street Journal" reports former senior economic officials have privately warned the White House that the president's tweets and statements are making matters worse. It really is a loss of confidence from increase who you have a president talking like this. The S&P 500 in a bear market, down from the high point October 3rd.
JOHNS: So, the second day of Christmas, and the fifth day of the government shutdown. The president said yesterday the government will not reopen until he gets the border wall he's been demanding. He started Christmas with a phone call to U.S. troops around the world. After this, the Grinch appeared. The president made it clear he was not ready to ease demands for a border barrier and offered no clues about a compromise.
(BEGIN VIDEO CLIP)
TRUMP: I can't tell you when the government's going to be open. I can tell you it's not going to be open until we have a wall, a fence, whatever they'd like to call it. I'll call it whatever they want.
Every one of those Democrats approved the wall or a fence or very, very substantial barriers. As soon as I said I want to build a wall, they were all against it.
Take Comey. Everybody hated Comey, they thought he did a horrible job. The Democrats hated him. And once I fired him, everybody said, oh, why did you fire him, why did you fire him?
It's a disgrace what's happening in our country. But other than that, I wish everybody a very merry Christmas.
(END VIDEO CLIP)
ROMANS: The president also criticized Democrats for planning to launch investigations when they take charge of the House next month. He called that presidential harassment. Congress would call it oversight.
JOHNS: Oversight.
ROMANS: The effects of the shutdown will really start to be felt today. Staffing at the office overseeing federal food stamps will be cut by 95 percent. The department of health and human services estimates nearly 8,000 federal employees will not return to work.
JOHNS: Customs and Border Protection is making changes after a second child from Guatemala died in U.S. custody. An 8-year-old boy identified as Felipe Alonzo Gomez died late Christmas Eve in detention with his father. Now, authorities in Guatemala are calling for an investigation.
Jean Casarez with the latest. (BEGIN VIDEOTAPE)
JEAN CASAREZ, CNN CORRESPONDENT: Christine and Joe, U.S. Customs and Border Protection is saying that an 8-year-old little boy, a Guatemalan national who had been apprehended in new Mexico with his father, has died while in their custody. At this point, they do not have an official cause of death.
According to the timeline released by the CBP, it was the morning of Christmas Eve, and a Border Protection Agent noticed the child appeared to be sick. The little boy and his father were transferred to the Gerald Champion Regional Medical Center in Alamogordo, initially diagnosed with a common cold. That all changed, according to officials, when they discovered the boy had a fever.
He was released from the hospital mid-afternoon on Christmas Eve with prescriptions for antibiotics and ibuprofen. It was hours later, he began vomiting, was transferred back to the hospital, and he died. Now the Border Patrol's Office of Professional Responsibility is going to conduct a review of this most recent death to determine the official cause -- Christine, Joe.
(END VIDEOTAPE)
JOHNS: Thanks for that. The boy's death comes just weeks after a 7- year-old girl Jakelin Caal Maquin from Guatemala died less than 48 hours after being detained by U.S. Customs and Border Patrol agents.
(BEGIN VIDEO CLIP)
REP. VERONICA ESCOBAR (D), TEXAS: Yet again these tragedies are happen in happening because Congress and the administration have not adequately provided the resources, both in personnel and infrastructure to adequately take these folks in.
(END VIDEO CLIP)
JOHNS: Now the head of Customs and Border Protection is ordering immediate action. The new steps include secondary medical checkups on all children in CBP custody, adding capacity for medical assistance from partners like the Defense Department, FEMA, and Health and Human Services, and partnering with ICE to transport migrants to family centers or local charities that can provide temporary housing.
ROMANS: CBP is offering options to relieve capacity issues at checkpoints in El Paso, Texas. It comes as Immigration and Customs Enforcement is offering to drop off 1,200 migrants there in the next few days. That's according to Congresswoman-elect Veronica Escobar, 411 migrants were brought there Sunday, 260 dropped off Monday. At least 180 sent there Christmas day. ICE drops off these migrants without providing food, shelter, transportation. ICE said it has limited options to remove families. The United States blaming decades of inaction by Congress.
JOHNS: Signs of distress in America's national security system. A senior administration official tells CNN national security decision- making has, quote, basically stopped working. The source says decisions are, quote, made on a whim on phone calls. The official also said the drawdown in Syria was done without deliberation, with no consideration of risks.
In the weeks before the president made the decision, two sources tell CNN national security adviser John Bolton instructed senior officials to meet with coalition partners and assure them the U.S. is staying in Syria until Iran is out of Syria.
ROMANS: A source tells us a move to pull out has left allies and partners shocked, totally bewildered. Also warning Russia is reveling in the latest move since it sends a message to allies if Americans are your friends, they'll abandon you. Now almost a week after Defense Secretary Jim Mattis decided to resign, some officials are suggesting president Trump might have stayed in Syria if Mattis had gone sooner.
CNN's Barbara Starr explains from the Pentagon.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Christine, Joe, as the days have gone on since Mattis' abrupt and startling resignation, of course, everybody in Washington's got an opinion. Some defense officials are telling us they wonder if it might have been better if the secretary had stepped down sooner. He was known to have disagreements with President Trump. He had been sidelined in several matters as Secretary of State Mike Pompeo took a more predominant position in the Oval Office in advising the president.
And if Mattis had stepped down sooner, these officials say, could somebody have come in and convinced the president to stay the course with troops in Syria and troops in Afghanistan. Of course, we're never really going to know.
Some other officials say now that national security decision-making is very disjointed, very ad hoc, and made mostly by Mr. Trump depending on how he feels at a given moment.
For Mattis, we may never know what's really been thinking until he either writes a book or decides to speak publicly -- Joe, Christine.
(END VIDEOTAPE)
JOHNS: Barbara Starr at the Pentagon.
The U.S.-led coalition against ISIS in Syria says coordinated air strikes have killed or wounded several hundred ISIS fighters. The Joint Task Force says that attack severely downgraded the terror group's logistics and staging areas.
[05:10:03] They say the air strikes dealt a significant blow to ISIS' ability to finance terrorist activities. The statement comes after President Trump's declaration last week that ISIS has been defeated.
ROMANS: Next month's Women's March in Chicago has been canceled. The leadership facing charges of anti-Semitism. What reasons did they give for the cancelation?
(COMMERCIAL BREAK)
ROMANS: It was a white Christmas but a travel nightmare in parts of the west. Snow on the 15 Freeway in the Cajon Pass between L.A. and Las Vegas triggering at least four separate crashes. The California highway patrol had to temporarily close the highway.
JOHNS: That may be a sign of what's to come as record numbers of Americans hit the roads for the holidays. Huge sections of the country are expected to see strong winds, heavy rain, mountain snow. That storm system pushing into the central part of the country where millions are under winter weather alerts.
The latest now from CNN meteorologist Pedram Javaheri.
(BEGIN VIDEOTAPE)
PEDRAM JAVAHERI, AMS METEOROLOGIST: John and Christine, good morning, guys.
Yes, we are watching the Western U.S. here because that's where all the activity has been the past 24 hours. And eventually, this system puts itself in place across portions of the central U.S. where not only do we have the ingredients here for some severe weather, warm, moist air off the gulf, but a concern for heavy snowfall across portions of the Northern Plains.
In fact, that's where the winter weather advisories are in place, the winter storm warnings, as well, for places across northern Minnesota, portions of the Dakotas, working back toward eastern Colorado on into Nebraska and Kansas, as well.
But the system as it pushes off toward the east taps into quite a bit of warm air here. So, widespread rain showers expected across the Deep South, while even as far as northern New England. That's where you've got to end up to get some snow out of this through at least Friday. Notice back toward the west, we have the significant snow still in the forecast.
How about 42 degrees in New York City, almost 60 out of Atlanta. And some of the mild air eventually does want to push up towards the Northeast here as we go in toward the weekend. In fact, look at the temps here in New York City, up to almost 60 degrees.
[05:15:01] And then the bottom drops out, wrapping up with temps that are more seasonal for this time of year -- guys.
(END VIDEOTAPE)
ROMANS: All right. Thank you so much for that.
The Women's March slated for Chicago next month has been canceled. The past two marches drew hundreds of thousands to Grant Park in conjunction with other marches worldwide. Organizers say the upcoming event was scrapped because of high costs and a volunteer shortage. But it comes as the movement's national founders face scrutiny over
allegations of anti-Semitism and their connections to the Nation of Islam leader Louis Farrakhan. Board member Sarah Kurensky told "The Chicago Tribune" efforts are being made to organize and take action in local communities. Marches and rallies are planned in Washington and dozens of cities around the world on January 19th.
JOHNS: The parents of a 16-year-old varsity wrestler who was forced to cut his dreadlocks before a match are breaking their silence. In this viral video, you see a trainer cutting Andrew Johnson's hair with scissors in the middle of the gym. He was told by a referee his hair needed to be cut or he could not compete. Now, Charles and Rosa Johnson's say the referee's conduct appeared more egregious as more information surfaces.
ROMANS: They say the referee was late to the meet and didn't question their son's hair during the initial evaluation. When their son said he could push back his hair, the referee allegedly refused because Andrew's hair wasn't in its natural state.
The referee, Alan Maloney, did not respond to CNN for comment. New Jersey athletics officials say he won't be assigned to moderate matches until the incident has been thoroughly reviewed.
JOHNS: A health alert for thousands of surgical patients in northern New Jersey. Anyone who had outpatient surgery at Health Plus Surgery Center in Saddle Brook from September 27th to September 28th is being urged to get their blood tested. The state health department says unsanitary conditions were found at that facility. Patients may have been exposed to hepatitis B, hepatitis C, and HIV.
No illnesses were reported, and the actual risk of infection is said to be low. The surgery center says it has improved its infection control and sterile processing and says it's cleaned and repaired all of its instruments.
ROMANS: Hope so.
More than $400,000 in donations have been returned to those who contributed to a bogus crowdfunding campaign. Kate McClure and Mark D'Amico said a homeless man, Johnny Bobbitt, gave his last $20 to McClure when she was stranded on Interstate 95 so she could put gas in her car. They started the GoFundMe account to thank him. It went viral, 14,000 people loved this Good Samaritan story and donated.
Prosecutors say the story that drove the campaign was predicated on a lie. Prosecutors say McClure and D'Amico squandered the money on a car, high-end handbags, trips and casinos. All three face charges of second-degree theft and conspiracy charges.
JOHNS: Now you can always try mega millions if you didn't get enough gifts. There was no winner in the largest ever Christmas Day jackpot. Friday's jackpot jumps to an estimated $348 million. The winning numbers, 2-8-42-43-50, and the mega ball, 6.
ROMANS: All right. First a word of warning. If you are watching with your kids and they know that Santa Claus is real, now would be a good time to mute the TV for about 50 seconds or so. Ready? OK.
Now, the question is -- did the president give away the grown-up truth about Santa when he spoke to a South Carolina girl on Christmas Eve? Seven-year-old Collman Lloyd called NORAD to track Santa's progress. She was put through to the president who asked if she is still a believer in Santa. He asked a 7-year-old.
Now we can hear Collman's side of the conversation.
(BEGIN VIDEO CLIP)
TRUMP: What are you going do for Christmas?
COLLMAN LLOYD, 7-YEAR-OLD: Probably put out some cookies and then we're hanging out with our friends. So that's pretty much all.
TRUMP: Well, that's very good. You have a good time.
LLOYD: Yes, sir.
TRUMP: Are you still a believer in Santa?
LLOYD: Yes.
TRUMP: Because at 7, it's marginal, right? Well, you just enjoy yourself.
(END VIDEO CLIP)
ROMANS: Coleman later confirmed to the "Post and Courier" that Santa is real. Her folks said they did not mind the president asking her that and did not find it controversial. After the call, Collman still set out milk and cookies.
You're little grandkids -- don't inject the doubt.
JOHNS: Parents everywhere holding their breath.
ROMANS: Like the treasury secretary injecting doubt into the financial system. Trump injects doubt into Santa.
JOHNS: Christmas scare for Lakers fans now. OK. LeBron James goes down. Would the Lakers' fortunes fade with him?
Coy Wire, talk to me. I didn't stay up to see the whole game. I'm worried.
(COMMERCIAL BREAK)
[05:23:14] JOHNS: LeBron James and the Lakers actually put on a show against the Warriors on Christmas. But it looks like it came at a little bit of a cost.
ROMANS: Oh, yes. Coy Wire has more in this morning's "Bleacher Report."
Hey, Coy, what happened?
COY WIRE, CNN SPORTS CORRESPONDENT: Good morning.
Well, you'd think Lakers fans would have, you know, been having more sugar plum dreams and maybe NBA titles. They blew the Warriors out in Oakland by 26 points. But at the end of the night, they were thinking, oh my goodness, what happened?
Here you see LeBron slipping, going after a loose ball. You can see him mouth, I heard something pop. That's not good. Lakers say it's a strained left groin.
The Warriors, they fought all the way back cutting L.A.'s lead to two with LeBron out. Rondo had 15 points. The Croatian sensation Ivica Zubac was nine of ten shooting. The Lakers win 127-101. They're all going to be hoping LeBron James' injuries are, indeed, a strained groin when he gets the MRI later today.
Elsewhere, Kyrie couldn't be stopped on Christmas. He forced overtime with the Sixers with the fade away in the lane. They scored the first five in the lane. A big three to give Boston the lead back. Then pulls up on the break for another deep three.
Forty points on the night for Kyrie. He's pumped. Fans love it. Celtics win 121-114.
All right. Get your tissues ready. It's a heartwarming tearjerker for you. Pitcher Brady Singer's dreams came true when the royals drafted him in June. Years of hard work paying off to the tune of a $4 million signing bonus. On Christmas, he let mom and dad know he couldn't have done any of it without them.
(BEGIN VIDEO CLIP)
JACQUELYN SINGER, KC ROYALS PITCHER BRADY SINGER'S ROOM: Travel, hotel, all the Gatorades I drank is much more than I could ever give you.
[05:25:07] But there's something I want to give to you. I am paying off the loan from the bank. Also I paid off all your debt, as well.
What? Now instead of trying to save money every weekend to replace the savings account you drained on traveling so I could play baseball, you can spend it on yourselves.
(END VIDEO CLIP)
JOHNS: Really rips your --
WIRE: Ended by saying your giving hearts helped shape my tiny dream into a reality. As a first-time father of a 7-month-old baby girl at home, you know all you want someday is for your kids to realize --
ROMANS: Coy, you know like those parents, what they invest and what they sacrifice to get their kid to that kind of a level, right?
WIRE: The club teams, the private lessons --
JOHNS: Absolutely.
WIRE: Exactly.
ROMANS: Yes.
JOHNS: So much, more emotion there. And the emotion there is the emotion they felt year after year watching him come up through athletics. That's awesome.
WIRE: Absolutely.
ROMANS: All right. Nice to see you.
WIRE: You, too.
ROMANS: Happy Boxing Day.
Not exactly a festive mood, holiday mood at the White House.
(BEGIN VIDEO CLIP)
TRUMP: It's a disgrace what's happening in our country. But other than that, I wish everybody a very merry Christmas.
(END VIDEO CLIP)
ROMANS: The president's Christmas Day tear on the Democrats, the shutdown, Wall Street, the Fed, and Wall Street in need of a big rebound to close out 2018. Will we get it?
(COMMERCIAL BREAK)
ROMANS: Can Wall Street bounce back from the worst Christmas eve ever? The president still railing against the Fed. He's running low on patience with his treasury secretary.
(BEGIN VIDEO CLIP)
TRUMP: It's a disgrace what's happening in our country. But other than that, I wish everybody a very merry Christmas.
(END VIDEO CLIP)
JOHNS: A Christmas lump of coal from the president. No end in sight for the government shutdown, now in day five.
