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Early Start with John Berman and Zoraida Sambolin
Frenemy of the State; White House Set on Day 12 of Shutdown; Family Denies Spy Charges Against American in Russia; Winning Mega Millions Sold in New York; Texas Upsets Georgia 28-21 in Sugar Bowl. Aired 5-5:30a ET
Aired January 02, 2019 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[05:00:01] CHRISTINE ROMANS, CNN ANCHOR: The expiring tax credit will make the Model 3 at least $3,750 more expensive. The credit starts to phase out three months after the end of the quarter, during which the automaker sells 200,000 eligible electric cars in the United States. Tesla reached that mark in July, the first automaker to do so.
G.M. is next up for the phase out of the tax credit. It will likely hit the 200,000 mark this quarter, meaning its phase out will start in April.
DAVE BRIGGS, CNN ANCHOR: All right. Ahead, EARLY START continues with Mitt Romney taking aim at President Trump.
(MUSIC)
BRIGGS: The president has not risen to the mantle of the office, so says Mitt Romney. He's making his presence known in a blistering op- ed just days before taking his Senate seat.
ROMANS: Today is the first bipartisan meeting since the government shutdown began. Is a deal possible to end the shutdown costing 800,000 government workers their paychecks?
BRIGGS: And the family of an American detained in Russia denies any charges of espionage. Was Paul Whelan detained as payback for the Russia investigation?
ROMANS: And someone in New York waking up $425 million richer before taxes. We have the lucky numbers and where the ticket was sold.
BRIGGS: The billion-dollar jackpot is still unclaimed.
ROMANS: Is it really?
BRIGGS: They only have until April 21st.
ROMANS: Get to work, everybody. That's how you're going to make your money.
Good morning and welcome to EARLY START. I'm Christine Romans.
BRIGGS: I'm Dave Briggs. Happy New Year, everybody Wednesday, January 2nd. It is 5:00 a.m. in the East.
We start with Mitt Romney unloading on President Trump before he even takes his seat in the U.S. senate. The incoming Republican senator from Utah writing a scathing op-ed in the "Washington Post." He claims the president's behavior over the past two years is evidence that he has not risen to the mantle of the office. Romney has been a frequent critic of the president, but they appeared to mend fences after the election when Romney was being considered for secretary of state.
ROMANS: While Romney says he agrees with some of Mr. Trump's policies, he writes: A president should demonstrate the essential qualities of honesty and integrity and elevate the national discourse with comity and mutual respect. It is in this province where the incumbent's shortfall has been most glaring. The op-ed indicates Romney is planning to be the president's new Republican foil in the Senate with Bob Corker and Jeff Flake departing.
BRIGGS: President Trump's 2020 campaign manager, Brad Parscale, responding to Romney's op-ed, tweeting: Jealousy is a drink best served warm. And Romney just proved it.
Perhaps that's the after-dinner drink to revenge which is a dish best served cold. You let us know what you think Brad meant.
Mitt Romney, though, will speak with Jake Tapper today. "THE LEAD" airs at 4:00 p.m. Eastern on CNN.
ROMANS: Right. If are you just back from a holiday break, yes, the government is still partially shut down. It has been 11 days and counting. President Trump holding firm on his demand for border wall funding in more than two dozen tweets since Friday. Today, he's invited congressional leaders from both parties to meet with him at the White House. That hasn't happened since the shutdown began.
About a quarter of the federal government has been frozen for nearly two weeks. That means 800,000 federal workers are going unpaid while lawmakers still collect their paychecks.
Jessica Dean with more from the White House.
(BEGIN VIDEOTAPE)
JESSICA DEAN, CNN CORRESPONDENT: Good morning, Dave and Christine.
Here at the White House, there's expected to be a meeting with the president and leadership from the House and Senate from both parties later this afternoon. Details are still being worked out on all of this. But we are told to expect a briefing from the Department of Homeland Security during that meeting.
Of course, the two sides in the shutdown still pretty far apart. President Donald Trump for the past several days, he has been tweeting about the wall, how he must have the wall, and the $5 billion to fund it, the funding for the wall. And Democrats who will take over the House on Thursday and who plan to vote on a package of bills that includes $1.3 billion for border security but no funding for a wall, no mention of a wall.
So, of course, a lot there in the middle for them to -- both sides to compromise on. The question is, will there be any movement here at the White House this afternoon when that meeting takes place? We'll certainly be keeping an eye on it -- Dave and Christine.
(END VIDEOTAPE)
BRIGGS: OK. Jessica Dean, thanks.
The impact of the government shutdown is widening. The Smithsonian tweeting that all museums, research centers, the national zoo will be shut down today. And California's Joshua Tree National Park forced to close its campgrounds for health and safety reasons as toilets reach their capacity. Driving off road and other infractions that damage natural resources are also becoming a problem.
In previous government shutdowns, national parks have closed entirely, but gates have remained open under the Trump administration, leaving parks severely understaffed.
ROMANS: U.S. Customs and Border Protection investigating an incident at the California border with Mexico. Agents using teargas, pepper spray, and smoke on a group of migrants trying to enter the U.S. illegal.
[05:05:00] Now, some of the migrants allegedly throwing rocks as others lifted children over the razor-edged wire in the early hours of Tuesday morning. CBP estimates about 150 migrants approached the fence, but one-third of the group turned back when they saw the agents; 25 people taken into custody.
BRIGGS: The family of an American citizen detained in Russia strongly denying claims by the Kremlin that he is a U.S. spy. Retired Marine Paul Whelan was arrested in Moscow Friday on suspicion of espionage. His brother saying CNN Paul had been there for work and personal business and was in Russia for the wedding of a fellow marine.
(BEGIN VIDEO CLIP)
DAVID WHELAN, BROTHER OF PAUL WHELAN: He's not the sort of person who would stumble into a strange environment or make poor choices that could cause him risks. But particularly, he wouldn't have made choices that would have gotten him sideways of the Russian government and its espionage act.
(END VIDEO CLIP)
BRIGGS: David Whelan says the family only learned about Paul's detention from media reports on Monday.
More now from CNN's Martin Savidge.
(BEGIN VIDEOTAPE)
MARTIN SAVIDGE, CNN NATIONAL CORRESPONDENT: Good morning, Dave. Good morning, Christine.
You know, this may sound surprising, but actually the family of Paul Whelan was relieved to hear that he'd been taken into custody by Russian authorities. Let me explain that. You see, they knew he was going to Russia. And then come the 28th, last Friday, he suddenly goes silent. He doesn't call home, even his friends in Russia didn't know where he was.
And given what they know about their son and about their brother, that is totally out of character. They were so worried, they actually thought maybe he'd been the victim of violent crime, possibly even dead, which is why when the Russian authorities said, no, he's alive, but we've arrested him for spying, that there was a sense of relief but then also a realization that, of course, wait a minute here, spying? That is not the person they know. They say it's not his character.
A bit about Paul Whelan -- he is Canadian, or born in Canada, but he's an American citizen, actually served in the U.S. Marines, served overseas in Iraq. And then worked in local law enforcement and now works as a consultant for private security for a major auto parts manufacturer here in Detroit. He went to Russia not for work but was there to be at the wedding of a fellow former marine and then he gets arrested.
So, the initial fears the family have, have been replaced by new ones, that somehow he may be a pawn in a kind of showdown between the United States and Russia -- Christine and Dave.
(END VIDEOTAPE)
ROMANS: All right. Martin, thank you for that.
So, what is Russia saying about all this?
Let's go Moscow to and bring in CNN's Matthew Chance.
What are they saying, Matthew?
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Christine, good morning to you.
They're not saying a great deal beyond the statement that was initially put out by the FSB which is the main counter-espionage agency in Russia which is that this U.S. citizen, Paul Whelan, is in custody. He's been arrested on suspicion of spying. They said he was caught spying.
In terms of the consular access, something that the Russians under the Vienna Convention have 72 hours before they have to provide, we just don't know whether that access has been granted yet, whether U.S. diplomats have been permitted to see Mr. Whelan and to inspect his condition and question him about the circumstances of his detention. The 72 hours has, of course, lapsed. He was arrested we're told by the Russians on December 28th in the Russian capital Moscow. But very little else is known. We're in close contact with the U.S. embassy here in Moscow to try and
get the latest update on whether or not the diplomats have been granted access or taken that access if it has been granted. We'll bring it as soon as we can.
In terms of the timing of this, it's proving to be potentially significant because it comes a couple of weeks after Maria Butina in the United States, a Russian national, a pro-gun activist, pleaded guilty to conspiracy there after U.S. prosecutors accused of attempting to infiltrate conservative groups in the United States like the NRA and the Republican Party to influence Americans. She's going to be sentenced shortly. President Putin, others in the Russian administration, absolutely furious about that, saying that she is not a spy and was unknown to the Russian intelligence services.
But there is speculation that perhaps the detention of Paul Whelan may be linked to that case over in the U.S.
ROMANS: OK. All right. Thank you for that in Moscow.
BRIGGS: At least one prominent member of the military coming to the defense of retired four-star Army General Stanley McChrystal. McChrystal felt the wrath of the president after making these comments about Mr. Trump on Sunday.
(BEGIN VIDEO CLIP)
RETIRED ARMY GENERAL STANLEY MCCHRYSTAL: I think it's important for me to work for people who I think are basically honest, who tell the truth as best they know it.
INTERVIEWER: You think he's a liar?
MCCHRYSTAL: I don't think he tells the truth.
INTERVIEWER: Is Trump immoral in your view?
MCCHRYSTAL: I think he is.
(END VIDEO CLIP)
[05:10:00] BRIGGS: President Trump firing back albeit days later, tweeting, General, in quotes, McChrystal got fired like a dog by Obama. Last assignment a total bust. Known for big, dumb mouth. Hillary lover.
ROMANS: For the record, General McChrystal resigned in 2010 over comments he made belittling administration officials including Vice President Joe Biden.
Now, retired four-star Admiral William McRaven defending McChrystal. McRaven led the Osama bin Laden raid and has also drawn the scorn of President Trump. He calls McChrystal one of the great generals of this generation and the finest officer I have ever served with.
BRIGGS: The shooting death of a U.S. marine at the Washington, D.C., barracks remains a mystery this morning. The unidentified marine was on duty early Tuesday morning when he was killed. A marine spokesman confirms the fatal gunshot wound was not self-inflicted. The circumstances surrounding the incident are unclear, and the killing is being investigated by D.C. police.
ROMANS: One thing to look forward to in the New Year, lower gas prices. According to AAA, the national average for gas $2.25 a gallon, nearly 20 percent of states enjoying prices below $2 a gallon, the lowest since 2017.
The president tweeted twice on New Year's Day about gas prices. Prices are low and expected to go down this year, this would be good. Do you think it's just luck that gas prices are so low and falling? Low gas prices are like another tax cut.
U.S. crude settled at $45.41 a barrel Monday, ending down nearly 25 percent for the year. That's a remarkable crash in oil prices.
Now, OPEC and its allies agreed earlier in December to remove 1.2 million barrels a day from world markets. Members of the cartel pledged to reduce their production by 800,000 barrels a day for six months beginning in January. Now, that should support gas prices, right, should drive crude prices up and drive gas prices higher in the New Year.
So, watch this space. That's been really fascinating.
BRIGGS: Yes, an interesting indication.
Ahead, day four of the manhunt for whomever killed a 7-year-old in a drive-by shooting in Texas.
(BEGIN VIDEO CLIP)
LAPORSHA WASHINGTON, JAZMINE'S MOTHER: Whatever kind of hatred this man had in his heart, my child was taken from us for no reason.
(END VIDEO CLIP)
BRIGGS: The girl's devastated mother looking for answers.
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[05:15:17] ROMANS: A devastated Texas mom is demanding to know who killed her 7-year-old daughter in a drive-by shooting Sunday morning. Jazmine Barnes was one of four children in the car at the time of the drive-by shooting. Her mother, LaPorsha Washington, threw her body over her eldest daughter in the front seat to shield her from the gunfire, but she could not protect three other children in the back seat including Jazmine.
Washington suffered a gunshot wound. She has since been released from the hospital after being shot and is struggling to come to grips with the tragedy.
Nick Valencia has more. (BEGIN VIDEOTAPE)
NICK VALENCIA, CNN CORRESPONDENT: This is absolutely a heartbreaking way for the family to start their new year, mourning the death of the 7-year-old little girl, Jazmine Barnes. She was in the car with her mother and three siblings leaving a Walmart parking lot on Sunday morning in the Houston area, when out of nowhere, unprovoked, a gunman opens fire.
Very few details are given about the gunman's description. Harris County Sheriff Ed Gonzalez saying the suspected shooter is a white male in his 40s, had a beard, was wearing a hoodie, and was driving in a red pickup. But still, the make and model has not been released, nor have any license plate or any other distinguishing characteristics.
It was earlier that the mother of the 7-year-old who was also injured in the shooting, she was shot in the arm.
LAPORSHA WASHINGTON, JAZMINE'S MOTHER: I want him to be a man and turn himself in because I will never get to see my child again. You took my baby away from me. Behind whatever was going on in your head, I don't know if it was some kind of hatred, violent hatred, if it was a hate crime or what it was. When you fired that first shot and you seen my kids in that car, you should have stopped. You should have stopped. You took my baby from me.
VALENCIA: The Harris sheriff's office says that there's still no official motive, and they're not taking anything off the table, not even a potential for this being a hate crime. The suspected shooter is said to have continued to open fire as he fled the scene. They're asking for the public's help in combing through any surveillance footage that they might have to catch the suspected shooter -- Dave, Christine.
(END VIDEOTAPE)
BRIGGS: Nick Valencia, thanks.
Netflix facing criticism for pulling an episode of comedian Hasan Minhaj's show "Patriot Act" from its service in Saudi Arabia. The kingdom filed a legal complaint claiming it violated the country's anti-cyber crime law. But this particular episode centered on Crown Prince Mohammed bin Salman's alleged role in the killing of "Washington Post" journalist Jamal Khashoggi and mocked the official government accounts.
(BEGIN VIDEO CLIP)
HASAN MINHAJ, COMEDIAN: At one point, they were saying that he died in a fist fight Jackie Chan style. They went through so many explanations. The only one they didn't say was that Khashoggi died in a free solo rock-climbing accident.
(END VIDEO CLIP) BRIGGS: A spokesperson for Netflix says they strongly support artistic freedom worldwide, but the group Human Rights Watch announced the move saying, quote, Netflix's claim to support artistic freedom means nothing if it bows to the demands of government officials who believe in no freedom for their citizens, not artistic, not political, not comedic.
ROMANS: All right. Dramatic video of a baby boy rescued Tuesday from the rubble of an apartment leveled by a suspected gas explosion. This is in Russia. The video shows rescue workers pulling debris away to reveal the boy wearing a top and pink socks, wrapped in a blanket. He was found after a rescuer heard him crying.
The child is described less than a year old, spent 35 hours in the debris. At least 14 people killed. Remarkable. Wow.
BRIGGS: Incredible.
All right. Ahead, mascot mayhem.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Might be the play of the day on New Year's Day. Get down there in the superdome, and Bevo's not having it.
(END VIDEO CLIP)
BRIGGS: Watch what happens when Bevo, the Longhorns' mascot, clashes with Uga.
Andy Scholes has the ugly details in "The Bleacher Report".
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[05:22:38] BRIGGS: Most of America's rail systems have missed a critical safety deadline. The Department of Transportation says only four of the nation's 41 rail systems met the Monday deadline to implement positive train control which can prevent collisions and derailments. The others including Amtrak either applied for or have been granted extensions. The chairman of the NTSB told Congress last February, 150 accidents which caused 300 deaths since 1969 could have been prevented by the technology.
Sad news from Purdue University. Tyler Trent, known as the super fan of the Purdue Boilermakers, lost his battle with bone cancer Tuesday. The 20-year-old inspired college football fans across the country. He was named an honorary captain for Purdue when the Boilermakers faced Auburn in the Music City Bowl last week. He also received the Disney Spirit Award in December.
(BEGIN VIDEO CLIP)
TYLER TRENT, PURDUE SUPERFAN: I think today, there's always a light at the end of the tunnel, and -- as long as you rely on your faith, things will work out.
(END VIDEO CLIP)
BRIGGS: Trent helped raise more than $100,000 at a student-run event at Purdue to support the children's hospital is the Indiana University Health. Tyler Trent was just 20 years old.
ROMANS: The woman who helped kidnap Elizabeth Smart in 2002 is living near an elementary school in Salt Lake City. Wanda Barzee was released in September, five years early. She is serving five years of federal supervised release, but guidelines don't set limits on how close she can live to a school. Smart says anyone with a history of child abuse should not be allowed anywhere near a school, family, or community center.
The new year off to a good start for a lucky resident of New York state. One winning mega millions ticket was sold for last night's $425 million jackpot in Glen Head, Long Island, about 25 miles from New York city. The cash option for the jackpot is $254.6 mil. The winning numbers, 34-44-57-62-70, the gold mega ball was 14.
Dave?
BRIGGS: That's the way to start the New Year.
All right. Texas pulling off a huge upset beating Georgia in the Sugar Bowl. This after their mascot set the tone before the game.
Andy Scholes has more in the "Bleacher Report."
Happy New Year, my friend.
ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Happy New Year, Dave.
There aren't too many live mascots on the field in college football anymore.
[05:25:02] Bevo, the Longhorn at Texas, is one of them. Check out what happened before the Sugar Bowl. The bulldog trying to get a pregame pick with Bevo, but he was having none of it. Bevo charging at Uga. Luckily no one was hurt when he did that.
But Bevo definitely setting the tone for the game. Texas scoring the first 17 points. Quarterback Sam Ehlinger who dreamed of playing quarterback for the Longhorns since he was a toddler rushed for three touchdowns. Texas alum Matthew McConaughey loving it on the sidelines. Tom Harmon getting a big Gatorade bath as Texas, the double-digit underdog in this one, wins 28-21. After the game, Ehlinger said this win means Texas is officially back.
Urban Meyer meanwhile coaching his final game for Ohio state as they took on Washington in the Rose Bowl. Buckeyes jumping out to the big lead in this game, then held on to win 28-23. After the game, Meyer was asked if he will ever need another college program.
(BEGIN VIDEO CLIP)
URBAN MEYER, OHIO STATE HEAD COACH: I don't believe that's going to happen. I'm going to enjoy tonight. I don't believe --
(END VIDEO CLIP)
SCHOLES: All right. Two of the greatest tennis players, Roger Federer, and Serena Williams, squaring off for the first time in their respective careers. They played a mixed doubles match at the Hopman Cup in Perth, Australia.
Federer coming out on top in the match. You see him taking a selfie on the court. Here's what the picture looked like. Those two have won 43 grand slam titles between them. Lots of greatness in that pic.
All right. Finally, one of college football's most iconic venues hosting this year's Winter Classic. More than 75,000 fans packing Notre Dame stadium to watch the Bruins beat the Blackhawks. Next year's winter classic heading south. The Dallas stars are going to host the game at the Cotton Bowl.
I don't know about you, but I think it's so cool to see hockey being played outdoors in those big football stadiums, especially when it's in a cool place like South Bend.
BRIGGS: Yes, one of my favorite events of the year. That was probably top three in terms of the setting and the environment. The Cotton Bowl, that comes with risk.
SCHOLES: It does. It could be 35 in Dallas at this time of year or 75. You never know.
BRIGGS: That will make for interesting optics. Romans, back to you.
ROMANS: All right. Before Mitt Romney takes his Senate seat, he is letting the president know he demands better. A harsh op-ed says the president falling short. And the first bipartisan meeting since the government shutdown began, is there middle ground on border security with the shutdown in day 12?
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