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Early Start with John Berman and Zoraida Sambolin

Rudy Giuliani's Collusion Evolution; Government Shutdown Effects Mount; Four Americans Killed by ISIS in Syria. Aired 4-4:30a ET

Aired January 17, 2019 - 04:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEO CLIP)

[04:00:17] RUDY GIULIANI, LAWYER FOR PRESIDENT TRUMP: I never said there was no collusion between the campaign or between people in the campaign.

CHRIS CUOMO, CNN ANCHOR: Yes, you have.

GIULIANI: I have no idea -- I have not. I said the president of the United States.

(END VIDEO CLIP)

DAVE BRIGGS, CNN ANCHOR: Oh, that face Chris Cuomo made there as the president's lawyer admitting members of the campaign colluded with Russia? An astonishing shift in strategy that would separate Donald Trump from his entire campaign.

CHRISTINE ROMANS, CNN ANCHOR: Coast to coast the pain grows from the government shutdown. Workers, contractors and their families struggling. Now a power play by the House speaker could cancel the State of the Union address.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: Could set in motion enthusiasm by the enemy we're fighting.

(END VIDEO CLIP)

BRIGGS: The president proclaimed ISIS in Syria was defeated. Now four Americans are dead after a terror attack.

ROMANS: And the president of Michigan State has resigned. John Engler recently said some of Larry Nassar's sexual abuse victims were enjoying the spotlight. He is out.

Good morning, and welcome to EARLY START. I'm Christine Romans.

BRIGGS: Good morning. Good morning to all of you. I'm Dave Briggs. It's Thursday, January 17th. That day is the day people are most likely to give up their New Year's resolutions.

ROMANS: Really?

BRIGGS: Have you?

ROMANS: I have not.

BRIGGS: You have not.

ROMANS: I started mine in September so that I wouldn't have a -- I wouldn't have the pressure of New Year's.

BRIGGS: Interesting strategy there.

(LAUGHTER)

ROMANS: I know.

BRIGGS: I have a resolution.

ROMANS: I tricked myself.

BRIGGS: Mine obviously I haven't given up on as you can see. It's also day 27th of the government shutdown and we'll get there in a moment. But we start with collusion evolution authored by Rudy Giuliani. President Trump's lawyer deploying a new strategy, this one apparently aimed at insulating the president from any possible misdeeds by other Trump campaign officials.

Last night Giuliani told Chris Cuomo he is not ruling out the possibility other members of the campaign may have colluded with Russia.

(BEGIN VIDEO CLIP)

GIULIANI: I never said there was no collusion between the campaign or between people in the campaign.

CUOMO: Yes, you have.

GIULIANI: I have no idea -- I have not. I said the president of the United States. There is not a single bit of evidence the president of the United States committed the only crime you can commit here, conspired with the Russians to hack the DNC.

(END VIDEO CLIP)

ROMANS: So Giuliani claims he never said the campaign didn't collude with the Russians. Two problems. One, his client has said otherwise repeatedly.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: There was no collusion between the Trump campaign and the Russian people. There was no collusion whatsoever. There never has been. The last thing I want is help from Russia on a campaign. There has been no collusion between the Trump campaign and Russians. (END VIDEO CLIP)

ROMANS: Second problem, Giuliani himself has unambiguously denied the top campaign officials colluded.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Is it still the position of you and your client that there was no collusion with the Russians whatsoever on behalf of the Trump campaign?

GIULIANI: Correct. When I say the Trump campaign, I mean the upper levels of the Trump campaign. I have no reason to believe anybody else did. Only ones I checked with are obviously the top four or five people.

(END VIDEO CLIP)

BRIGGS: So Giuliani says he checks with the top people. One might assume that would include the campaign chairman who was Paul Manafort. And remember we just learned last week that Manafort gave secret polling data to an associate, Konstantin Kilimnik, who is thought to have ties to Russian intelligence.

ROMANS: All right. Day 27 of the government shutdown now. And House Speaker Nancy Pelosi is hitting the president where it hurts him the most, trying to take away his TV airtime. A White House official tells CNN at this point the president still plans to deliver his State of the Union speech as scheduled January 29th even though Pelosi sent a letter to Mr. Trump asking him to move the date or deliver the speech in writing because of security concerns caused by the shutdown.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: Hundreds of people working on the logistics and the security of it. Most of those people are either furloughed or victims of the shutdown, the president's shutdown. But that isn't the point. The point is security.

(END VIDEO CLIP)

BRIGGS: Make no mistake, it is ultimately Speaker Pelosi's decision whether President Trump delivers the address to a joint session. The House and Senate must pass resolutions to green light the State of the Union. Neither has done so and Pelosi controls whether the House will pass one at all. That has House minority leader Kevin McCarthy all fired up. He's calling on Pelosi to, quote, "act like a speaker," and claims her request is motivated by pure politics.

For her part, DHS Secretary Kirstjen Nielsen says the Department of Homeland Security and the U.S. Secret Service are fully prepared to support and secure the State of the Union.

[04:05:02] ROMANS: All right. Nationwide more people feeling the real-life effects of this government shutdown. There's growing concern in particular for overworked and underpaid federal airport employees. This is about safety. In San Jose, California, the city council has approved a plan to give short-term, no interest loans to help them pay for food, gas and rent.

CNN's Ed Lavandera has more on the steep price Americans are paying for government dysfunction.

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ED LAVANDERA, CNN CORRESPONDENT (voice-over): In Washington, federal workers wait in line for food.

ROY BLUMENFELD, FEDERAL CONTRACTOR, DEPARTMENT OF JUSTICE: When I saw that there was a free hot meal for people who have been affected by the shutdown, I decided to come down and get -- you know, take advantage of that.

UNIDENTIFIED FEMALE: Thank you for being here.

LAVANDERA: Celebrity chef Jose Andres' foundation is feeding thousands of federal workers going without pay.

Coast to coast unpaid federal employees are turning to charities for help. But the effects could be even more widespread. CNN has learned an estimated 2 million contractors could be losing their paychecks as well. And they would not be eligible for government back pay.

BLUMENFELD: There will be no back pay for this. This is unpaid time off for me.

LAVANDERA: And there is also growing security concerns for air travelers.

UNIDENTIFIED FEMALE: What do we want?

UNIDENTIFIED FEMALE: Pay.

UNIDENTIFIED FEMALE: When do we want it?

UNIDENTIFIED FEMALE: Now.

LAVANDERA: TSA agents are protesting at airports across the country. The TSA is reporting skyrocketing absences, 6.1 percent yesterday, compared with 3.7 percent the same day last year.

ALANA BILLINGSLEY, FLIGHT ATTENDANT: Right now I'm mostly concerned about security. After September 11th, the flight attends cannot be expected to be the first point of security ever again.

LAVANDERA: And the Air Traffic Controllers Union is worried about unpaid overworked employees staffing control towers.

TRISH GILBERT, EXECUTIVE VICE PRESIDENT, NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION: I would say it is less safe today than it was a month ago. Absolutely.

LAVANDERA: And then there is the Coast Guard, the first branch of the military to miss a paycheck during a shutdown.

AMANDA GIBBS, MARRIED TO COAST GUARD MEMBER: It's been pretty shaking and somber. We're living on our savings account right now.

LAVANDERA: Every American will feel the economic impact now projected by the White House to be worse than expected. Some analysts estimate a $1.2 billion loss each of the first three weeks the government was closed and if it continues, growth could slow to zero.

As the shutdown stretches on, more people are being called back to work without pay. Public health and environmental cleanup is threatened as well.

JEANNE SCHULZE, PRESIDENT, AMERICAN FEDERATION OF GOVERNMENT EMPLOYEE LOCAL 1003: Sites are not being cleaned up. Inspections are not being conducted. Permits are not being issued. We're not outreaching to the community. We're not processing grants for contracts. So it has a spillover effect.

LAVANDERA: In the meantime, some workers say they are looking for new jobs in the private the private sector and hoping for some compromise.

SELINA MINGO, U.S. ATTORNEY'S OFFICE: No, I don't understand why we as government workers are being penalized for a wall that we have nothing to do with.

(END VIDEOTAPE)

LAVANDERA: What we are hearing repeatedly from government employees who are having to work without pay here is during this government shutdown is that it is the uncertainty of what is going to happen that is really starting to take its toll on a lot of these workers. Many of them say they don't know how long this government shutdown is going to last, and they fear at this point that it could last months -- Dave and Christine.

ROMANS: All right. Ed Lavandera in Dallas. Thank you, Ed.

The shutdown comes as a time when consumers and businesses already starting to worry about potential downturn on the horizon. Ten years into an economic recovery. A survey by the National Association of Realtors found, get this, that a quarter of realtors say the government shutdown had dissuaded their clients from buying homes.

The shutdown also putting some key economic reports on hold that creates more uncertainty for investors and farmers. Farmers normally look to a report on world markets to help determine what to plant in the spring. But look, the Department of Agricultural is swept up in the shutdown, that crucial report was not published last week.

The Commerce Department is unfunded. Retailers did not get a report on last month's sales. They are now in the dark on how Americans spent their money during the holiday season. If the shutdown lasts through the end of the month, it's unlikely the government will be able to publish its next report on GDP. The broadest measure of economic activity, dark. This is something incredibly closely watched by investors, oh, and by

the president of the United States who came to office promising 4 percent, even 5 percent GDP if he's elected.

BRIGGS: They may want that number not published, right?

ROMANS: Maybe. That's right. It could be -- you know, Jamie Dimon --

BRIGGS: It's that ugly.

ROMANS: From JPMorgan says it could be a flat quarter, no growth in the first quarter if the shutdown --

BRIGGS: It's a (INAUDIBLE).

ROMANS: -- continues.

BRIGGS: All right. U.S. officials tell CNN there are no plans to reverse President Trump's decision to withdraw troops from Syria. That word following an attack that left four Americans dead. ISIS has claimed responsibility. Remember, it was just a few weeks ago the president justified his decision to pull U.S. troops out of Syria.

(BEGIN VIDEO CLIP)

TRUMP: We have won against ISIS. We've beaten them and we've beaten them badly.

(END VIDEO CLIP)

BRIGGS: Republican Senator Lindsey Graham, a staunch ally of President Trump, has been harshly critical of the president's strategy in Syria, says he's concerned the president's statements about Syria have emboldened ISIS.

(BEGIN VIDEO CLIP)

[04:10:11] GRAHAM: My concern by the statements made by President Trump is that you set in motion enthusiasm by the enemy we're fighting. You make people who are trying to help wonder about us. And as they get bolder the people we're trying to help are going to get more uncertain. I saw this in Iraq. And I'm now seeing it in Syria.

(END VIDEO CLIP)

BRIGGS: Some strong words from Lindsey Graham there.

Now some of the video you're about to see may be disturbing, a little warning there as we get to CNN's Jomana Karadsheh live in Istanbul with the very latest -- Jomana.

JOMANA KARADSHEH, CNN CORRESPONDENT: Well, Dave, that devastating attack in the city of Manbij in northern Syria claiming 19 lives according to the Syrian Observatory for Human Rights, that monitoring group.

As we understand from the Department of Defense, as you mentioned, four Americans lost their lives, two U.S. service members, a DOD contractor and a DOD civilian in addition to three U.S. service members who were wounded in this attack. ISIS claiming responsibility saying it was one of their suicide bombers who carried out the attack.

Now the unfortunate timing of this, Dave, happening at the same time as Vice President Mike Pence was speaking in a public event where he said that ISIS has been defeated, that the caliphate had crumbled. And that's not entirely true. While, yes, that caliphate had crumbled, that ISIS no longer controls territory, that vast amount of territory it once controlled in Iraq, in Syria, as security experts, as observers in this region within the U.S. military have been warning for a long time now, they are saying that ISIS is far from defeated.

It still possesses that ability to carry out these devastating attacks. Some feel that perhaps the timing, this coming just a few weeks after President Trump announcing victory over ISIS and that decision to pull U.S. troops may have perhaps been a message from the group that they are still there and they are still able to carry out these attacks -- Dave.

BRIGGS: Message received. Jomana Karadsheh, live for us in Istanbul, thank you.

ROMANS: All right. Twelve minutes past the hour. A leading advocacy group for the LGBT community very angry with Karen Pence. The second lady is back at a classroom at a school that does not allow gay students.

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[04:16:45] ROMANS: Acting EPA administrator Andrew Wheeler telling senators at his confirmation hearing that, quote, "The biggest issue with wildfires is forest management, not drought." If that sounds familiar, it's because Wheeler is repeating what President Trump said in November. But note studies do link climate change to a sharp increase in large wildfires. The Camp Fire that killed 86 people and the Woolsey Fire that devastated Malibu, by the way, both took place away from forested land. Wheeler told senators climate change is, quote, "a huge issue," but, quote, "not the greatest crisis."

BRIGGS: Two resolutions to censure Republican Congressman Steve King for racist comments are being referred to the House Ethics Committee, rather than getting a floor vote. Democratic leaders expressed concern about setting a precedent censuring members over offensive speech which could put Republicans and Democrats in a long running battle over censures.

On Tuesday the House voted on a resolution of disapproval of white nationalism and white supremacy. It followed recent comments by King questioning why the terms were considered offensive. Democrat Bobby Rush, the only House member to vote against the resolution because it didn't go far enough. He says it condemned bigotry but ignored the bigot in the House. ROMANS: All right. One of the country's biggest LGBT groups is

condemning Karen Pence for returning to her post as a teacher at a school that bans gay students.

CNN first reported on Tuesday the vice president's wife is teaching art at Immanuel Christian School in Northern Virginia. She previously taught there for 12 years.

Here's what the group GLAAD says about that, quote, "It's disturbing Second Lady Karen Pence would put her stamp of approval on an institution that actively targets LGBTQ students." A spokesperson for Mrs. Pence tells CNN, quote, "It's absurd that her decision to teach art and the school's religious beliefs are under attack." She would not say whether the second lady agrees with the school's anti-gay policy.

BRIGGS: Ahead, if burgers and pizza weren't good enough, how about lobster or barbecue? Celebrities who want to feed the college football champs after their fast food feast at the White House.

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[04:23:21] ROMANS: Michigan State president John Engler resigning after claiming Dr. Larry Nassar's sexual abuse victims were enjoying the spotlight now. Engler's remarks came last week in an interview with the "Detroit News." The former three-term Michigan governor telling the newspaper, quote, "Survivors who haven't been in the spotlight have been able to deal with this better than the ones who have been in the spotlight, who are still enjoying that moment at times, you know, the awards and recognition."

BRIGGS: More than 150 victims testified about the abuse they suffered at the hands of Nassar and the toll it took on their lives. Rachael Denhollander was the first victim to accuse Nassar publicly. She responded to the suggestion she's enjoying the moment tweeting, "You mean like having to change the day I grocery shop so my three kids don't see a photo of their mom demonstrating what was done to her body? Tell me more about how enjoyable the spotlight is."

ROMANS: All right. Day four of the Los Angeles teachers strike. The teachers union and the Los Angeles Unified School District will be back at the bargaining table today. Both sides met Wednesday with Mayor Eric Garcetti. He is offering to mediate the labor dispute. About 32,000 L.A. teachers and school staff members hit the picket lines this week. They're demanding smaller class sizes, higher salaries and more counselors and school nurses.

Six hundred thousand students in this district, many of them are in school despite the strike because their parents have no other child care option. The district has resigned more than 2,000 administrators and hired about 400 substitute teachers.

BRIGGS: The Clemson Tigers may get a real feast after all. Some celebrities offering to feed the college football champs who got a fast food banquet at the White House this week.

[04:25:06] "Good Morning America" host and football legend Michael Strahan offered to foot the bill in New York.

(BEGIN VIDEO CLIP)

MICHAEL STRAHAN, HOST, "GOOD MORNING AMERICA": Lobster, whatever you want, we're going to take care. We're going to give you the proper meal that you deserve.

(END VIDEO CLIP)

BRIGGS: Also celebrity chef, Ayesha Curry, wife of Golden State Warriors star Steph Curry, tweeted an invite for the champs to her restaurant for a real feast. She says no 10 cent dipping sauces on silver platters. No word whether the Tigers will accept any of these offers. No word if the Tigers really want any of these offers.

Nice offers by the celebrities, but it's not clear that they were unhappy by the feast they got.

ROMANS: I'm thinking about their trainers, though, who looked at all those hamburgers and went, no, we have finally --

BRIGGS: These guys are fed like kings. They are doing just fine.

ROMANS: I live on protein shakes -- no, but two hamburgers.

All right. Two years of collusion denials, but now this whopper from Rudy Giuliani.

(BEGIN VIDEO CLIP)

GIULIANI: I never said there was no collusion between the campaign or between people in the campaign.

CUOMO: Yes, you have.

GIULIANI: I have no idea -- I have not. I said the president of the United States.

(END VIDEO CLIP)

ROMANS: Chris Cuomo's eyes, I love that. A new defense tactic actually suggesting members of the Trump campaign could have colluded with Russia.

(COMMERCIAL BREAK)