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Early Start with John Berman and Zoraida Sambolin
President Trump Visits Troops in Iraq; Dow Stages Comeback After Worst Christmas Eve Ever; Day Six of Partial Government Shutdown; Trump Returns Following Trip to Iraq. Aired 5-5:30a ET
Aired December 27, 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: For the first time since it started trading in 1929.
[05:00:04] The 110-year-old department store has not been profitable since 2010. It has $4 billion in debt. It is forced to offer steep discounts in clothing to clear its huge inventory glut. Last month, JCPenney reported a 5.4 percent drop in sales. Stock has fallen 68 percent this year, nearly 30 percent in December alone.
Even after an expensive makeover, JCPenney has not been able to recover from the great recession. It lost shoppers to cheaper sellers a decade ago and has struggled to bring them back.
And it's a big contrast. These holiday sales were the best in years. Holiday sales grew at the fastest pace in six years thanks to rising wages and lower gas prices. Shoppers spent $158 billion. Retail spending increased 5.1 percent from last year.
Gas prices are down 20 cents a gallon over the past month. That gave shoppers extra cash for the holidays. Consumers were also buying online. According to MasterCard, online sales rose more than 19 percent compared to last year. Amazon had a record setting season with more than 1 billion items shipped for free with Amazon Prime.
JOE JOHNS, CNN ANCHOR: Amazing. Sad to see that happen to Penney's, though.
ROMANS: Yes.
JOHNS: All right. EARLY START continues right now.
(MUSIC)
JOHNS: The president makes his first trip to a war zone. He said Iraq could be used as a base to attack Syria after the U.S. pulls out.
ROMANS: Wall Street with the record rebound. Dow stops its slide with the biggest point gain ever. Can it last today?
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Whatever it takes. I mean, we're going to have a wall. We're going to have safety. We need safety for our country. (END VIDEO CLIP)
JOHNS: The president vowing to stay the course. No wall, no deal to fund the government.
ROMANS: And a New Jersey school district standing up for a varsity wrestler forced to cut his dreadlocks. No teams from that school will compete if the referee who ordered the haircut is officiating.
Good morning and welcome to EARLY START. I'm Christine Romans.
JOHNS: I'm Joe Johns. It's Thursday, December 27th. It's 5:00 a.m. in the East. Welcome to our viewers here in the U.S. and around the world.
President Trump expected to land back in Washington this hour after he and the first lady quietly swept into Iraq, paying a holiday visit to U.S. service members.
(BEGIN VIDEO CLIP)
TRUMP: We came to Al Asad to share our eternal gratitude for everything you do to keep America safe, strong and free.
(END VIDEO CLIP)
ROMANS: The president making good on the promise to visit troops fighting one of the wars he has scorned as a costly mistake. The secret overnight flight from Washington to the Al Asad Air Base, even Mr. Trump admits caused some anxiety.
(BEGIN VIDEO CLIP)
TRUMP: I had concerns for the institution of the presidency, not for myself, personally. I have concerns for the first lady, I will tell you. But if you would have seen what we had to go through with the darkened plane with all windows closed and no lights on whatsoever, anywhere, pitch black. I have never seen it. I have been in many airplanes. All types and shapes and sizes. I've never seen anything like it.
(END VIDEO CLIP)
JOHNS: The president remained on the ground for three hours and just after a week when James Mattis resigned over the president's decision to pull troops out of Syria, Mr. Trump said Iraq could be used as a base to take further action in Syria.
CNN's Barbara Starr has made that trip to Iraq many times. She has more from the Pentagon.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Christine and Joe, President Trump and First Lady Melania Trump made the secret trip to Iraq. It had been expected at some point he might visit the war zone, but nobody knew that it would happen when it did.
The Secret Service and the U.S. military working together for weeks to, of course, ensure that security of the president and first lady and entire traveling party. They spent about three hours on the ground. The president talking to the troops for about 20 minutes, visiting with them, talking about football, talking about how things were going for them, getting a briefing from commanders.
But the president also very much taking the opportunity to defend his decision to withdraw U.S. troops from next door, Syria.
TRUMP: They said, sir, can we have six more months? I said yes, you got six more months. Then they said again, recently could we have more time? I said nope, you can't have any more time. You got enough time. We've knocked them out. We've knocked them silly.
I think a lot of people have come around to my way of thinking. It is not fair when the burden is all on us.
REPORTER: Do you have any plans to pull forces out of Iraq as well?
TRUMP: No plans at all. No. In fact, we could use this as a base if we wanted to do something in Syria.
STARR: That may prove to be difficult, because if you want to do air strikes and ground operations, you have to have intelligence from the ground inside Syria. It may be now much more difficult to collect that intelligence.
[05:05:02] But the troops giving the president a respectful, a very optimistic, a very enthusiastic reaction as you would expect U.S. military troops to do for any president of the United States -- Christine, Joe.
(END VIDEOTAPE)
ROMANS: All right. Barbara Starr at the Pentagon -- thank you.
A meeting discussed with the president and Iraqi prime minister was canceled. As for why? That depends on whom you ask.
A statement from the Iraqi prime minister's media office says there was supposed to be a formal reception and meeting. The Iraqis say there was a, quote, variation of views on how to organize it, so it was replaced by a phone conversation.
White House Press Secretary Sarah Sanders said security restrictions meant White House officials were only able to invite the prime minister two hours before the appointed time. Sanders says the prime minister was unable to attend because he was in a different part of Iraq.
JOHNS: There was one glitch in the trip. The president and White House communications team revealed a U.S. Navy SEAL team deployed to Iraq. The commander in chief can declassify information at will, but the location and identity of the operations unit would not be publicly revealed especially while the unit is still deployed.
ROMANS: It started with the selfie, when the president took the selfie with the chaplain. After the president left Iraqi air space, he tweeted a video of the members of the SEAL team. We are not showing it to protect their cover, protect their mission. Current and former Pentagon officials tell "Newsweek" such special ops information is almost always classified, revealing it violates operational security.
JOHNS: We are entering day six of the portion government shutdown with no apparent end in sight. Speaking to reporters and U.S. troops, the president vowing to continue the shutdown until he gets funding for his border wall.
(BEGIN VIDEO CLIP)
TRUMP: I don't know if you folks are aware of what's happening. We want to have strong borders in the United States. The Democrats don't want to let us have strong borders. Only for one reason, you know why? Because I want it.
Whatever it takes. We're going to have a wall. We're going to have safety. We need safety for our country.
(END VIDEO CLIP)
JOHNS: Just a reminder, the president is about 10 minutes away from landing at Joint Base Andrews in Maryland. Now, of course, he's been demanding $5 billion for the border wall. When asked if he would be willing to accept $2 billion, the president dodged the direct question three times.
ROMANS: Both chambers of Congress are expected to gavel in today. No votes are scheduled. President Trump who, don't forget, said he would be proud to own the shutdown punting the blame now. He's now pointing the finger at Democratic leader Nancy Pelosi.
(BEGIN VIDEO CLIP)
TRUMP: We have a problem with the Democrats because Nancy Pelosi is calling the shots, not Chuck. Chuck wants to have this done. I really believe that. He wants to have this done.
But she's calling the shots and she's calling them because she wants the votes. And probably if they do something, she's not going to get the votes and be speaker of the house. That would be not so good for her.
(END VIDEO CLIP)
ROMANS: Just a reminder, Pelosi has the votes to reclaim the speaker's gavel. The longer the shutdown continues, the sooner the 800,000 unpaid federal workers will feel the pinch. Banks and credit card companies and utilities will start asking for payment.
JOHNS: The shutdown now also affecting the nation's court system. The Justice Department has asked the federal judge to temporarily pause certain cases until furloughed lawyers are back on the job. The government shutdown also threatens access to key economic data.
In a middle of a volatile period on Wall Street, federal reports on the economy, investments and trade will slow to a trickle.
ROMANS: All right. The Santa Claus rally came a day late to Wall Street. Stock markets staged a miraculous comeback Wednesday from their worst ever Christmas Eve. The Dow soared more than 1,000 points. I have never seen 1,000 and up arrow ever, because that has never happened before. That's 5 percent rally, a big one day move.
The S&P 500 also rose 5 percent. Nasdaq jumped 5.8 percent, that pulls out of bear market.
This was the biggest gains for all three averages since March 2009. Wednesday was a respite from a very terrible month for investors. Even after the rally, the S&P 500 remains close to entering a bear market, which could end the longest bull market in history.
This month still on pace for the worst December since 1931. The White House tried a new approach to reassure investors sending chairman of the Council of Economic Advisers, economist Kevin Hassett, to speak with reporters.
(BEGIN VIDEO CLIP)
REPORTER: The president made it clear that Steve Mnuchin's job is safe. Is the Fed chairman's job safe?
KEVIN HASSETT, CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS: Yes, of course, 100 percent, yes.
REPORTER: One hundred percent, the Fed chairman's job is not in jeopardy by this president?
HASSETT: Absolutely, that's right.
All the anecdotal information we're getting is that the fundamentals remain extremely sound. That Christmas sales are through the roof. GDP in the fourth quarter is looking like it's very close to if not above 3 percent again.
[05:10:04] And so, I think the momentum we saw this year is carrying forward to next year.
(END VIDEO CLIP)
ROMANS: When I first heard that clip, 100 percent safe, the Fed chief's job. That got a lot of attention because the president has bashed the Fed chief on many occasions and said the Fed is raising interest rates too fast.
Hassett instead blamed the market volatility on, quote, fundamentals, noting growth in Europe has slowed, growth in Asia has slowed. But he said the U.S. economy continues to be strong. JOHNS: Funny, the rally starts when the president stops talking about
Wall Street and the Fed and starts talking.
ROMANS: You know, I'm looking at the futures right now, it's very volatile. I mean, I would not bet on what is happening today but futures showing maybe 400-point decline at the open.
JOHNS: Frustrated border officials speaking out after the second child death in custody. One Customs and Border Protection agent tells CNN: We're not designed to hold all of these people. A complete overhaul needs to happen. We're overcrowded, understaffed. We don't have the manpower to deal with the crisis.
No one ever thinks you'll lose a life. You give them food and water. If they complain, you flag it. It's sad. It's heartbreaking. That hits home.
ROMANS: Homeland Security Secretary Kirstjen Nielsen announcing some changes. All children in CBP custody now received a thorough medical screening, she says, going forward. All children will get a medical assessment, whether or not the adult they're with asks for one. Nielsen says 1,500 officers and agents along the border are medically trained. And DHS has asked the military to provide medical help.
JOHNS: And local groups in El Paso are adjusting to the faster pace that ICE is releasing migrants into the city. 522 migrants were set to be dropped off last night. The head of the Annunciation House says the migrants are being released through a network of hospitality sites. Most of them church connected. That is far more humane than earlier this week when hundreds of migrants were left in a cold at a bus station parking lot.
ROMANS: All right. I want to take you now to some live pictures that are coming in just now. The president and first lady and the team that took this surprise trip to Iraq is on approach in Joint Base Andrews at 5:11 a.m. Eastern Time. The president coming home from that surprise trip, his first trip to a warzone where he said that the folks there in Iraq would pick up the slack for whatever the military operation, the military intervention from the U.S. will be in Syria.
JOHNS: Real whirlwind trip for the president at Al Asad Air Base and went to Ramstein, and now back to Washington, D.C. very shortly. He is not expected to make any public events today. We will definitely apprise on that.
ROMANS: It is fascinating, because it's the president who for years has complained for what he thought were costly mistakes and misadventures by the American military overseas. So, him going to Iraq on this visit, also fascinating to watch him describe the anxiety he felt when he was landing.
JOHNS: Absolutely, and we did know there are a lot of concerns there in the Oval Office about the president and the safety involved in making the trip to a war zone. But now that he's done it, it's a lot like some of the other presidents who made multiple trips to war zones during this time in the 18 years or so. ROMANS: I can remember Laura Bush making several trips to Afghanistan
over the years, when her husband was president. All right. We will continue to monitor this. The president and first lady are home.
Thirteen minutes past the hour.
A winter storm intensifying as it moves east. Tornadoes and flash floods and blizzard conditions all possible during one of the busiest travel times of the year.
(COMMERCIAL BREAK)
[05:16:34] ROMANS: A winter storm intensifying as it moves east. This is Santa Fe, New Mexico. Snow and ice caused the road conditions to deteriorate. Multiple wrecks on I-25.
We are told, expect more of the same as the storm moves east today. Blizzard conditions, flash flood watches, even isolated tornadoes in parts of the south.
We have the latest now from meteorologist Pedram Javaheri.
(BEGIN VIDEOTAPE)
PEDRAM JAVAHERI, AMS METEOROLOGIST: Joe and Christine, good morning, guys.
Yes, we are watching the severe weather across the portion of the Gulf Coast and back to northern and central Texas in the past few hours. The active weather shifts to the east. The severe weather concern does have a risk for hail, damaging winds, those are the primary threats.
And isolated shots of tornadoes embedded here in New Orleans, around Lake Charles back towards Mobile. Some of the areas of concern here when it comes to the active storms this afternoon. Notice very slow progression from Thursday into Friday when it comes to the wet weather. That is the concern here with the rainfall that's in store and impacting potentially at least 24 million people here where we have the flood watches in place.
So, expecting widespread coverage here of 2 to 3 inches. Some areas 4 to 5 inches of rainfall down toward the south. And to the north, it's all about the wintry weather. In fact, blizzard conditions in parts of the Dakotas, includes Aberdeen, towards portions of South Dakota as well. Some of these areas could see as much as a foot and a half to two feet of snow in the next couple days.
But again, the big story for the East Coast becomes all rain and all severe storms mainly along the gulf coast states -- guys.
(END VIDEOTAPE)
JOHNS: Pedram, thanks for that.
A school district in New Jersey holding an emergency meeting after a referee forced a varsity wrestler to cut his dreadlocks. Andrew Johnson told the referee identified as Alan Maloney to push back his hair, which is allowed, and something Johnson has done in the past matches. But Maloney refused because the teen's hair wasn't in its natural state whatever that means. The district has now decided it will not send sports team to any events where Maloney is officiating.
ROMANS: The state's athletic association now is investigating. The civil rights division of the attorney general's office already announced a probe. Andrew Johnson's ordeal angering many people across the state. Governor Phil Murphy tweeting: No student should have to choose between his or her identity and playing sports. Despite the disruption, Johnson won his match in overtime. Alan Maloney, the referee, has yet to respond to CNN's request for a comment.
JOHNS: One city in Massachusetts is taking a new approach to curb the rising rates of teen vaping. Somerville, located right outside of Boston, is restricting e-cigarette sales to adult only stores. The city's mayor says the products are shamelessly marketed to teens who don't fully understand the health risks. E-cigarette use among teenagers skyrocketed between 2017 and 2018. The number of high school students vaping jumped by 78 percent, while use of middle schoolers rose 48 percent.
ROMANS: Now to an amazing holiday story. An Arizona man fulfills an 8-year-old girl's Christmas wish sent by balloon from Mexico. Randy Heiss was hiking with his dog. He spotted a red balloon with a note, written in Spanish. A girl named Dayami asked for toys, clothes, magic markets and coloring book.
(BEGIN VIDEO CLIP)
RANDY HEISS, FOUND CHRISTMAS LIST: It was a Christmas wish list. You can't turn away from that. Some little kid put that list out there in good faith hoping something would happen with it.
[05:20:02] And so, I just knew at that moment that I had to do everything I could to fulfill that list.
(END VIDEO CLIP)
ROMANS: So, last week, he sent a message to a radio host in Nogales in order to track her down, using social media. They found her father in an hour. A day later, Randy met Dayami at the radio station and gave her the gifts for her and her little sister.
JOHNS: That is an awesome story. So good.
All right. Purdue fan's inspirational journey is leading him to their biggest game of the season. Coy Wire is coming up with more in this morning's "Bleacher Report", coming up next.
(COMMERCIAL BREAK)
JOHNS: A young Purdue football fan's battle with cancer inspired a lot of people. Tyler Trent is having one of his big dream come true. ROMANS: Coy Wire has more in this morning's "Bleacher Report".
Hi, Coy.
COY WIRE, CNN SPORTS CORRESPONDENT: Two months ago, doctors gave 20- year-old Tyler Trent three months to live. He is in hospice with a rare form of bone cancer. But all season, through all of his treatments, he has been cheering his boilermakers and now he's going to the music city bowl in style.
Yesterday, Indianapolis Colts Jim Irsay sent Trent and his family to Nashville in his private jet so he can watch Purdue play Auburn tomorrow. Trent was named team captain for the game.
Purdue fans greeting him as he arrived at the hotel in Nashville. Trent's attitude is an inspiration. He says that the wakes up every morning knowing it might be his last. He still uses to make that day the best he can be.
On Christmas Eve, he wrote, isn't that a choice we all have every day? After all, nobody knows the amount of days we have left. Some could say we are all in hospice to a certain degree.
For the first time in Bowl history, a bowl game was canceled because of weather. Boise State and Boston College were part way through the first quarter in the First Responders Bowl when lightning and thunder that were seen all across Dallas, delayed and then cancelled the game an hour and a half later, knowing that some families and fans made the trip to Texas, the Christmas gift this year?
Boston College athletic department did something outstanding. They're giving full refunds to their fans who attended the game and offered them tickets to any future Eagles sporting event on campus.
Good stuff. Good gesture. And the bowl responded. They're now giving everyone a refund who attended the game.
ROMANS: Awesome. Coy, thanks so much for that. Have a great week.
Right. There you go. The president and the first lady at Joint Base Andrews, returning from that surprise trip to Iraq. You see them there coming down the steps at 5:25 a.m. Eastern Time.
JOHNS: This, of course, was a whirlwind trip from United States over to Al Asad Air Base in Iraq and to Ramstein and now back to Washington, D.C. The president and first lady, as you see, walking across the tarmac at Joint Base Andrews in Maryland. Just a long day for them.
First trip the president has ever taken to a war zone to meet with the troops. He has gotten heat for that. But now, he's done it. Despite the fact even he admitted it was at times a little scary.
ROMANS: Yes, you hear him talking about, with all of the lights off and window shades and landing quietly and silently and darkly there. Really rattled, and you could see how it rattled him. The other thing I think it's interesting is that this is a president
essentially elected after years of criticizing costly adventures and mistakes in Iraq. For him to go there is poignant. He said you will be picking up the slack for the withdrawal from Syria.
JOHNS: From Syria. Absolutely.
So, a work in progress is the president's foreign policy as it relates to the war zones. The president headed to the White House now. As you can see, he is aboard Marine One, the marine helicopter and making its way now back to the White House.
ROMANS: We'll be right back.
(COMMERCIAL BREAK)
