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Early Start with John Berman and Zoraida Sambolin

Democrats Plan to Investigate Trump After Takeover of House; Democrats Push Plan to End Government Shutdown; Trump Won't Commit to Syria Timeline; U.S. Ambassador Huntsman Visits American Detained in Moscow; China Lands Rover on Far Side of the Moon; Aired 4:30-5a ET

Aired January 03, 2019 - 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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[04:31:17] CHRISTINE ROMANS, CNN ANCHOR: A new era on Capitol Hill. And a new reality for President Trump. Democrats take over the House today.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D), MINORITY LEADER: We're asking the president to open up government.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: It's too important a subject to walk away from.

(END VIDEO CLIP)

DAVE BRIGGS, CNN ANCHOR: The president and Democrats remain dug in with no deal to end the government shutdown.

(BEGIN VIDEO CLIP)

TRUMP: Let the damn oil and gasoline. You let it flow.

(END VIDEO CLIP)

ROMANS: President Trump wants the credit for low gas prices. Remember when he did the same for stocks?

BRIGGS: And China claims victory in the race to the far side of the moon.

Welcome back to EARLY START, everybody. I'm Dave Briggs. I am not the world's best re-gifter. You are.

ROMANS: Thank you.

BRIGGS: Yes, you are.

ROMANS: I did re-gift.

BRIGGS: You deserve credit for that.

ROMANS: I really gave some cookies today. And everyone was happy with me. I'm Christine Romans. 31 minutes past the hour. Thanks for the shout-out.

This morning, single-party rule in Washington comes to historic end as Democrats take over the House of Representatives. It's expected they'll choose Nancy Pelosi as their leader making her the first woman ever to reclaim the speaker's gavel.

Democrats will hold a wide margin in the House, 235 seats to Republicans' 199 but their ability to actually pass legislation will be hamstrung by the GOP's six-vote margin in the Senate and of course President Trump's veto pen in the Oval Office.

BRIGGS: Even so the president faces a brand new reality which actually started yesterday. He sat down with Democratic leaders in the situation room, wanting to talk border security but they redirected the conversation to their plan to end the government shutdown now entering its 13th day.

More on that in a moment. But for the latest on the new balance of power, let's get to Phil Mattingly, a busy man, on Capitol Hill.

PHIL MATTINGLY, CNN CONGRESSIONAL CORRESPONDENT: Christine and Dave, Thursday marks a new era for Washington, for Congress, frankly even for the White House as well. Democrats will take the majority in the House. Divided government, here we come. And it's not just the fact that policy wise or even politically, we're not totally sure what's going to happen over the course of the next two years, although gridlock seems likely. It's also who's actually coming to Washington?

If you take a look at what occurred back in the 2018 elections, back in November, the class of freshmen that are coming to D.C. have said that they're going to change D.C. You have progressive fire brands like Alexandria Ocasio-Cortez, Ilhan Omar, Rashida Tlaib, who made very clear that they don't agree that Congress business as usual is something that they subscribe to.

In all you have 40 women who are coming to Capitol Hill. More women serving in Congress than ever have before. On the other side of that, 20 new veterans are coming to Congress as well. You have a new group of African-Americans and a new group of the first two Muslim members of Congress -- female members of Congress to ever serve. Native- American members of Congress. Diversity is probably one of the biggest stories of this class. Diversity is one of the biggest story of the 116th Congress.

Of course the big questions aren't just necessarily the make-up of Congress, although it's important that it now reflects far more of the country that they currently serve, it's what's actually going to happen. And Democrats have made clear they want to do two things. They want to move policies forward that they agree with, that they subscribe to, even if the president does not. And they've also made clear they want to investigate the president. They want to conduct oversight of the president.

Now they say from leadership on down that they can do both things at once. It's going to be something we're going to have to keep a close eye on. The White House has made very clear, the president calls it presidential harassment, that they're going to be keen to fight them every single step of the way. We'll just have to keep a close eye out -- guys.

BRIGGS: Phil Mattingly, thanks.

As we mentioned one of the Democrats' first order of business proposing a way out of this government shutdown. A proposal which would just so happen to reduce the president's leverage to demand funding for his border wall. But with both sides entrenched, their sit-down in the sit room led to nothing.

For more on that here's Kaitlan Collins at the White House.

[04:35:04] KAITLAN COLLINS, CNN WHITE HOUSE CORRESPONDENT: Well, Christine and Dave, Washington is essentially at a stalemate today now that that meeting between the president and congressional leaders yesterday ended in a deadlock with no progress being made and the government no closer to being reopened than it was 12 days ago when it first partially shut down.

Now in this meeting which was held in the situation room because White House officials wanted to communicate just how serious they think what they're calling the crisis on the border truly is.

There was also already a lot of drama happening in that room. Now we're told by sources that as soon as the Department of Homeland Security Secretary Kirstjen Nielsen started giving her briefing to those lawmakers that Nancy Pelosi interrupted and said the Democrats wanted to lay out their plan to reopen the government. That's when Chuck Schumer proposed having the Senate and the House pass a bipartisan six bills to keep those agencies funded and then negotiate over the next 30 days what they want to do for DHS funding for the long haul.

But that's an idea that the White House is opposed to. A White House official said that they asked these Democrats if we do that agree to do that and have the president sign those bills, will you come up on your requirement for funding for only $1.3 billion in border security funding we want to make that number higher. Democrats didn't signal if they were open to doing so and essentially we are back to square one here.

Now talks have been delayed until Friday when the White House says they've invited those same lawmakers to come back to the White House and continue those negotiations. And in the words of one White House official, they said prepare for this to be a long shutdown because this could go on for a while -- Christine and Dave.

ROMANS: All right. Kaitlan, thank you for that.

After meeting with the president Democratic leaders told reporters they believe they gave Mr. Trump a chance to take yes for an answer. He did not do so.

(BEGIN VIDEO CLIP) SEN. CHARLES SCHUMER (D), MINORITY LEADER: I said, Mr. President, give me one reason why you should continue your shutdown of these -- of the eight Cabinet departments while we are debating our differences on homeland security. He could not give a good answer.

PELOSI: We're asking the president to open up government. We are giving him a Republican path to do that. Why would he not do it?

(END VIDEO CLIP)

ROMANS: Earlier in the day at a Cabinet meeting the president made clear he is standing his ground on funding for his border wall. He says he will not compromise on keeping Americans safe.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: Would you accept anything less than $2.5 billion?

TRUMP: No, not 2.5. No. We are asking for 5.6. And, you know, somebody said 2.5. No, look, this is national security we're talking about.

(END VIDEO CLIP)

BRIGGS: Senator Lindsey Graham of South Carolina believes the government shutdown is a defining moment for the president and the Republican Party. He tells FOX News for Trump to fold on border wall funding is simply not an option.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: If he gives in now, that's the end of 2019 in terms of him being an effective president. That's probably the end of his presidency. Donald Trump has made a promise to the American people. He's going to secure our border. That's the end of us if we give in on this issue as Republicans.

(END VIDEO CLIP)

BRIGGS: Senator Graham proposing his own shutdown solution. That's $5 billion for border security in exchange for passage of the Bridge Act, that's a bipartisan bill that would temporarily protect Dreamers from deportation for just three years, though.

ROMANS: All right. President Trump also taking a few parting shots at his former Defense Secretary James Mattis. The president claiming he, quote, "essentially fired" his Pentagon chief. Truth is, Mattis resigned in protest.

Here is the president take on Mattis' departure.

(BEGIN VIDEO CLIP)

TRUMP: What's he done for me? How has he done in Afghanistan? Not too good. Not too good. I'm not happy with what he's done in Afghanistan. And I shouldn't be happy. But he was very happy, he was very thankful when I got him $700 billion. And the following year $716 billion. So I mean, I wish him well. I hope he does well. But as you know, President Obama fired him and essentially so did I. I want results.

(END VIDEO CLIP)

ROMANS: Mattis was supposed to leave the White House at the end of February. The president moved up the departure date by two months. But aides telling CNN the president was frustrated by the media coverage of Mattis' resignation letter.

BRIGGS: President Trump walking back plans for an immediate withdrawal from Syria while refusing to be pinned down on a new timetable. Multiple sources say his original 30-day drawdown plan is physically impossible without significant risk to U.S. forces. Pentagon officials say four months would be closer to reality. But speaking to reporters at a Cabinet meeting yesterday, the president would not commit to the longer timeline.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: You used the word slowly when you're describing withdrawal from --

TRUMP: I never said fast or slow.

UNIDENTIFIED REPORTER: For the record, what's your timetable? When do you want troops to be out?

TRUMP: I know somebody said four months. But I didn't -- I didn't say that either. I'm getting out -- we're getting out of Syria.

(END VIDEO CLIP)

BRIGGS: CNN's Barbara Starr with the very latest from the Pentagon.

[04:40:05] BARBARA STARR, CNN PENTAGON CORRESPONDENT: Dave, Christine, officially, the Trump administration has no specifics to make public about when and how 2,000 U.S. troops will come out of Syria. But the president is now saying he was never in a big rush. He never said they're coming out tomorrow. But in fact last month in a White House produced video, he said they were all coming home and they were coming home now.

But he's beginning to hear from his commanders and from some in Congress a lot of concern about too much rush on bringing those troops home, that they have to be brought home in a safe and orderly manner. They have to be protected inside Syria while the withdrawal was happening, and that it could take potentially, but unofficially, as long as four months to bring the troops out and all the equipment and weapons that they are inside Syria with that they have at a number of forward operating bases where they are located.

So all of this now a lot more complicated than the president perhaps imagined when he first talked about it. And of course one of the enduring questions is, what about ISIS? At first, Mr. Trump saying ISIS was defeated. But hearing from his commanders, not so fast. There are still pockets of ISIS in Syria they very much want to go after -- Dave and Christine.

BRIGGS: Barbara Starr, thanks.

President Trump touting the progress his administration has made with North Korea and showing reporters at the White House what he characterized as proof.

(BEGIN VIDEO CLIP)

TRUMP: I just got a great letter from Kim Jong-un. And those few people that I shown this letter to, they've never written letters like that. This letter is a great letter. We've made a lot of progress with North Korea and Kim Jong-un.

(END VIDEO CLIP)

BRIGGS: The expected second meeting with the North Korean dictator will be arranged in the not too distant future. The president again griping that his administration has not been given enough credit for better relations with North Korea. If someone else were in the White House, he says you'd, quote, "have a big fat war in Asia."

ROMANS: All right. Gas prices are falling in the new year and the president is taking the credit for it. According to AAA, the national average is $2.25 a gallon. The lowest since 2017. And residents in 13 states are enjoying gas prices below $2 a gallon.

It is no surprise then after the worst year in a decade on Wall Street for stock investors, President Trump has shifted now from taking credit from stocks to gas.

(BEGIN VIDEO CLIP)

TRUMP: People see the gasoline is way down. And the reason it's way down is because I called up some of the OPEC people. I said, don't do it. I said, do you think it's luck that happened? It's not luck. It's not luck. I called up certain people and I said, let that damn oil and gasoline -- you let it flow.

(END VIDEO CLIP)

ROMANS: U.S. crude is now $46.54 a barrel. One reason oil prices have cratered down 25 percent or so last year is that global growth forecasts are slowing in part because of the U.S.-China trade war.

The president also told reporters the end-of-the-year rout on Wall Street was a glitch. He predicted a 30 percent stock market rally if he gets a trade deal with -- that's right, the president of the United States making stock market predictions. He predicts a big rally if he gets a trade deal.

Let's take a look at U.S. futures right now. They are lower. It is a new year but it is the same old uncertainty that is gripping markets. We're going to watch Apple shares today. They were down 7 percent yesterday after the closing bell after they had a rare revenue warning, I think the first warning in 16 years, and they blamed China, slowing sales in China in part because of the president's trade war.

BRIGGS: Yes. 7 percent stock hit. What's the glitch he is referring to?

ROMANS: He didn't elaborate. He said there was just a glitch at the end of the year. That was the stock market. I mean, he --

BRIGGS: Worst December since the --

ROMANS: The Great Depression.

BRIGGS: That's quite a glitch.

Ahead, one country goes where no country before has gone. Next, the winner of the race to the far side of the moon.

ROMANS: And why Netflix is telling people, don't try this at home.

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[04:47:54] BRIGGS: 4:47 Eastern Time. State Department revealing that U.S. ambassador to Russia, Jon Huntsman, visited Paul Whelan, the American detained in Moscow on espionage charges. Huntsman subsequently spoke with Whelan's family by phone. Huntsman's visit represents a swift escalation of U.S. government efforts on Whelan's behalf.

Nathan Hodge live for us in Moscow with the latest. Nathan, good morning.

NATHAN HODGE, CNN MOSCOW BUREAU CHIEF: Good morning, Dave. A visit by Ambassador Huntsman certainly is no ordinary consular visit to an American who's been imprisoned by Russian authorities.

What we know right now, the FSB, Russia's domestic intelligence service, earlier this week said that they had detained an American, Paul Whelan, on suspicion of espionage without giving us very many details. His family on the other hand has said that he was simply here in Moscow to attend a wedding saying that he's visited Russia in the past.

He has friends in Russia, through social media. He maintains an account on the Russian version of Facebook, VKontakte, and here is what his brother, David Whelan, told us yesterday about his visit to Russia and what he was doing.

(BEGIN VIDEO CLIP)

DAVID WHELAN, BROTHER OF DETAINED AMERICAN PAUL WHELAN: I don't believe Paul's a spy. I don't believe that there are charges that would support him being a spy. Paul has traveled a lot for personal reasons and for business, and I think Russia was one of the many locations that he went to. He has friends that he's gathered over the years on social media and some of them are Russian, and so he's visited them while he's been in Russia.

(END VIDEO CLIP)

HODGE: Dave, what we really don't know at this stage is more details about Whelan's visit here in Moscow and of course the FSB, Russia's domestic intelligence service, the successor agency to the KGB, very secretive by nature, we're waiting to see if perhaps they'll release some information further about what they claimed to have been going on here.

And the FSB in the past has often released video or given information to Russian state media about arrests and detentions. But at this stage, that's really all that we have to go on, but we do see very serious interest on the side of Washington and on the State Department about the fate of this American who is currently being held in Moscow's Lefortovo prison -- Dave.

[04:50:08] BRIGGS: All right. Well, stay on it. Nathan Hodge, live for us in Moscow this morning, thanks.

ROMANS: All right. China has become the first nation on earth to land a spacecraft on the far side of the moon. State television announcing last night that the Chang'e 4 Lunar Mission landed a rover near the moon's south pole. I'm not even sure how to say the name of that rover. What are you calling it? The Chang'e?

BRIGGS: The Chang'e.

ROMANS: The Chang'e. All right. Well, you know, I know somebody who knows the answer. CNN's Matt Rivers.

What's it called, Matt? And how important is this?

MATT RIVERS, CNN CORRESPONDENT: It is the Chang'e. And it's a big deal for China. This is a huge step forward in their space program. The far side of the moon, for those who don't know, because of the way the moon rotates, one part of the moon, one hemisphere never actually faces the earth. And because of that, a number of different countries like the U.S. and Russia, have never landed a probe on that side of the moon mainly because it can't communicate directly to earth.

China actually launched a relay satellite to be able to get information from this rover that just landed within the last day or so, to -- from the satellite back on Earth. It is a big deal for them moving forward. It's the latest in a number of steps that they've taken in their space program, they plan to send a probe to Mars in 2020. They've already launched a couple of space stations. They want to launch another that might replace the International Space Station potentially in 2022.

So this is just the latest step and it shows you China's ambitions here. That's it. No one is saying the Chinese space program matches the U.S. yet. You know, China hasn't landed any one on the U.S. The U.S. did that 50 years ago. The U.S. has already sent a probe to Mars. But what you can look at here is, OK, China is going to conduct a number of experiments that no other country on earth has. They are spending the money, they are spending the time and the effort. It just shows you where they want to be in the future. And if you're looking for the next space race, look no further than the United States and China.

ROMANS: The Chang'e. All right . Thank you so much, Matt Rivers in Beijing for us. Thanks.

BRIGGS: Bernie Sanders insisting he was not aware of sexual harassment and pay disparity allegations during his 2016 presidential campaign. Democratic senator from Vermont offering an apology to, quote, "any woman who feels like she was not treated appropriately."

On Wednesday, "The New York Times" reported several women who worked on Sanders' campaign had come forward with allegations of sexual harassment and targeted disrespect. They said their claims were not adequately addressed. Sanders has since 2018 said that campaign established new protocols for handling sexual harassment allegations.

ROMANS: All right, 52 minutes past the hour. Chipotle has tweaked its menu to fit with trendy diet plans. CNN Business is next.

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[04:55:55] ROMANS: A setback for an effort to clean up the Pacific Ocean. The huge floating boom built to clean up plastic debris from the Great Pacific garbage patch is broken and being towed back to port in northern California for repairs. The plastic collection system nicknamed Wilson has been in operation since October. It's designed to capture trash floating in the Pacific between California and Hawaii. Officials say a 60-foot section of the boom broke off last week due to material fatigue.

BRIGGS: A ban on plastic straws triggering a brawl at McDonald's in St. Petersburg, Florida. Yes, plastic straw. It was all captured on a customer's iPhone. An eyewitness says 40-year-old Daniel Taylor became irate when there were no straws available at the condiment station. So he actually reaches across the counter and lunged at employee Yasmine James, grabbing her by the apron. She was having none of it. Yasmine was not hurt.

Police say Taylor kicked another employee who complained a pain afterward. Police arrested Taylor, who they say is homeless, on two charges of simple battery.

Netflix is pleading with viewers to stop imitating Sandra Bullock in the hit movie "Bird Box."

(BEGIN VIDEO CLIP)

SANDRA BULLOCK, ACTRESS, NETFLIX'S "BIRD BOX": If you hear something in the woods, you tell me. If you hear something in the water, you tell me.

(END VIDEO CLIP)

BRIGGS: Bullock's blind box challenges in the movie's post- apocalyptic world have given rise to a real world Internet craze. Viewers blindfolding themselves hoping to go viral and hurting themselves in the process. Videos all over the Internet of blindfolded people staggering through their homes or stumbling around outdoors getting so bad Netflix released a warning that reads, "Please do not hurt yourselves with this 'Bird Box' challenge."

We are really devolving as a human race.

ROMANS: I think that 45 million people that streamed that show.

BRIGGS: Dear god.

ROMANS: I mean -- no, I mean, see the movie. The "Bird Box" movie. I mean, I think --

BRIGGS: Oh, OK. But not the challenge.

ROMANS: Right. No. I think it's been wildly popular. The Sandra Bullock movie.

BRIGGS: She is a lovely actress.

ROMANS: Yes. OK. Let's get a check on CNN Business this morning. I'm actually bullish on Sandra Bullock as well.

BRIGGS: Me too.

ROMANS: Markets around the world are lower after Apple's warning on the Chinese iPhone sales. In Asia you got slight declines before those averages close. And then look at European stocks. They've also opened lower here. On Wall Street, it looks like another percent, 1.5 percent loss for Dow futures here.

The stocks started 2019 on a resilient note. Sort of. The Dow closed 19 points higher. It recovered from an early decline of 399. So down 399 then closes up 19. That earlier worry was sparked by fears about China's slowing economy. The S&P 500 and the Nasdaq both closed just up slightly.

And then Apple stock fell more than 7 percent after the closing bell, after the CEO Tim Cook warned iPhone sales could take a big hit from a slowdown in China.

Chipotle has tweaked its menu to fit with trendy diet plans. The Mexican food chain has started offering Lifestyle bowls. A new collection of meals that fit in Paleo, Keto and whole 30 diets. All three of the diets follow strict rules and they're growing in popularity. The move is part of Chipotle's reinvention as it works to recover from a series of health scares at its restaurants. Last year, Chipotle closed 2,000 locations to retrain staff on food safety.

Tesla slashing car prices in the U.S. by $2,000 to help offset a cut in a federal tax credit. Tesla triggered that tax credit phase-out over the summer when it became the first carmaker in the country that sell more than 2,000 plug-in vehicles. Before that benchmark Tesla buyers were entitled to a tax credit of $7500 bucks for purchasing a plug-in electric car.

As of New Year's Day, Tesla buyers will only get about half of that credit for the next six months. The credit will fall again in July and then disappears in 2020. The price cut might be good news for Tesla buyers, but it was bad news for investors. Tesla stock fell 8 percent on the news. The feeling that, you know, maybe their investors are raising concerns about future sales after some record deliveries of the Model 3. Future sales because of the phase out of that tax credit.

BRIGGS: OK. EARLY START continues right now with an extraordinary day in D.C. and day 13 of the government shutdown.

ROMANS: A new era on Capitol Hill and a new reality for President Trump. Democrats take over the House today.

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