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Senate To Vote On Shutdown Bills Thursday; Global Slowdown Worries Rise At World Economic Forum In Davos, Switzerland; Alzheimer's Detection Breakthrough; Major League Baseball Hall Of Fame Class Of 2019. Aired 5:30-6a ET
Aired January 23, 2019 - 05:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[05:31:19] DAVE BRIGGS, CNN ANCHOR: Day 33 of the government shutdown. Two competing proposals get a vote in the Senate. Does either have a chance?
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ADM. KARL SCHULTZ, UNITED STATES COAST GUARD: I find it unacceptable that Coast Guard men and women have to rely on food pantries.
THOMAS O'CONNOR, PRESIDENT, FBI AGENTS ASSOCIATION: FBI agents should not have to go work at a store.
(END VIDEO CLIP)
CHRISTINE ROMANS, CNN ANCHOR: Frustration mounts with federal workers set to miss another paycheck in just a couple of days.
BRIGGS: Striking Los Angeles teachers back in the classroom today just as teachers in another major American city vote to walk off the job.
ROMANS: And a possible Alzheimer's breakthrough. Scientists may have a way to predict the disease years before symptoms begin.
BRIGGS: Great news.
ROMANS: Welcome to EARLY START. I'm Christine Romans.
BRIGGS: Good morning. Good morning to all of you. I'm Dave Briggs. Five thirty-one eastern time.
The state of our union remains shut down this morning. The Senate set to take two votes, though, tomorrow on competing bills to end the 33- day-old government shutdown, but neither is given any real chance of success.
One bill backed by Republicans would fund the president's border wall at the full $5.7 billion he has demanded and would offer 3-year extensions for Dreamers and immigrants in the U.S. on temporary protected status. The Democrats' proposal, already passed by the House, has no money for the border wall. It would reopen the federal government through February 8th while negotiations for a permanent fix go on.
Both proposals expected to fail because neither has the 60 votes needed to advance.
ROMANS: The White House press secretary Sarah Sanders would not directly answer CNN's question whether the president would veto the Democrat's plan.
(BEGIN VIDEO CLIP)
REPORTER: If it gets to 60 votes, is the president going to veto that bill?
SARAH SANDERS, WHITE HOUSE PRESS SECRETARY: Look, the president has a proposal on the table. He's laid out what he would like to see and he's made that clear time and time again. The real question is why are Democrats not supporting the president's proposal?
(END VIDEO CLIP)
ROMANS: Democrats pushing back, saying the Republican plan is one- sided and made in bad faith.
House Speaker Nancy Pelosi tweeting, "If Trump gets away with shutting down the government to get what he wants, he will do this again going forward. He will continue to hold workers hostage to his demands."
BRIGGS: FBI agents sound the alarm over the shutdown. They say serious damage is being done to their counterterrorism and anti-gang operations. Dozens of agents releasing an anonymous report that concludes the impasse is weakening national security.
The president of the FBI Agents Association calling on lawmakers to figure out a solution fast.
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O'CONNOR: Realistically, FBI agents should not have to go work at a store stocking shelves because they can't feed their families on their government job. They're still working 50-plus hours a week, so when are they going to find time to go get that second job? It's ridiculous.
(END VIDEO CLIP)
ROMANS: The TSA also pleading for help as the shutdown drags on. According to an internal e-mail obtained exclusively by CNN, officials -- they are asking for 250 officers to move temporarily from their home airports to bolster staff at airports that are shorthanded.
Ten percent of the TSA workforce had unexcused absences over the weekend -- three times the number a year earlier. BRIGGS: Union leaders who represent IRS employees say they expect absences to surge as part of a coordinated protest that could slow or stall taxpayer refunds.
"The Washington Post" reporting this morning that hundreds of IRS workers already have permission to skip work due to financial hardship.
The Trump administration, last week, ordered more than 30,000 IRS employees back to work without pay.
[05:35:01] ROMANS: And this -- the shutdown over the president's demand for stronger border security forcing the State Department to cancel an international conference focused on stronger border security. The conference was scheduled to take place next month in Edinburgh, Scotland with a goal of preventing the proliferation and transfer of weapons of mass destruction and conventional weapons across borders.
BRIGGS: The Smithsonian managed to stay open for the first 11 days of the government shutdown but has since closed its museums and the National Zoo. The Smithsonian's secretary says the closure of restaurants, shops, IMAX theaters, and other operations is costing the Institution roughly $1 million in unrecoverable revenue every week.
ROMANS: The head of the Coast Guard says members of his service are relying on food pantries and donations during the shutdown. Admiral Karl Schultz tweeting out a video of support to his struggling team.
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SCHULTZ: We're 5-plus weeks into the anxiety and stress of this government lapse and your non-pay. You, as members of the armed forces, should not be expected to shoulder this burden. I find it unacceptable that Coast Guard men and women have to rely on food pantries and donations to get through day-to-day life as servicemembers.
(END VIDEO CLIP)
ROMANS: Yes, in the biggest economy in the world, we're not paying a branch of the military.
On January 15th, thousands of active duty Coast Guard members did not receive their regular paychecks, marking the first time in history U.S. servicemembers were not paid during a lapse in government funding.
BRIGGS: A makeshift food pantry for federal workers springing up in Brooklyn outside the Barclays Center. Sonia Smith, a furloughed TSA employee, drove all the way from Queens. She said never had to depend on anyone else for food but as the sole provider for her family, she has no choice.
(BEGIN VIDEO CLIP) SONIA SMITH, FURLOUGHED TSA EMPLOYEE: I feel like I'm in another world. Like, I can't believe this is happening. Every day I wake up and I'm like wow, here we go again. And I stay watching the news just to hear something positive, but it's not working.
(END VIDEO CLIP)
BRIGGS: Sonia says she's burning through her savings and if the shutdown lasts another week she'll be spending all her time traveling from food pantry to food pantry.
For more information about how can assist federal workers affected by the shutdown, go to cnn.com/impact.
ROMANS: So, if you're furloughed, maybe you can try to get some extra work somewhere unless, of course, you're -- the job you have is in a regulatory agency.
BRIGGS: That's right.
ROMANS: It means that you can't get another job. You have to get permission to do that.
But if you're working, like some of those FBI agents -- you're working and not getting paid, there's no -- there's no freelancing, you know. You have to decide between --
BRIGGS: You also can't pay informants in some situations.
ROMANS: Right.
BRIGGS: A lot of impacts down the line.
ROMANS: Yes. And every day you've got to pay for daycare and a bus ticket or whatever.
BRIGGS: Right.
ROMANS: Let's get a -- bring in CNN POLITICS digital director Zach Wolf, live for us in Washington.
So, Zach, we know there --
BRIGGS: Good morning.
ROMANS: -- are these two competing bills that they will hear tomorrow. We know that there's zero chance either of them go anywhere.
But in that sort of burned out landscape that we're in, are there maybe some green shoots -- that now we have the contours of a discussion -- or am I being too optimistic?
ZACHARY WOLF, DIGITAL DIRECTOR, CNN POLITICS: I think you're being very optimistic. But I do think leaders on both sides need to watch the last two minutes or so when you guys were going through effect after effect after effect of the shutdown.
It is incredible that leaders in Washington -- you know, they can't even agree to be in the same room together for a speech, much less sort of move forward to figure out how to end this shutdown.
I suppose it is a move in the right direction that Senate Majority Leader Mitch McConnell is bringing these -- is allowing votes of any kind on Democrats' proposal, on the president's proposal. It doesn't seem like either one has the votes at this point. Thirteen Republicans would have to peel away from the president, essentially, and send him something.
BRIGGS: Right.
WOLF: It's not clear if he would veto it. It seems like he would, given what he's said. And that would only fund the government for a couple of weeks until February 8th, so we'd have to do this all over again. So, it's certainly not a final solution for this totally self- inflicted wound --
ROMANS: Yes.
WOLF: -- that we're all living through.
BRIGGS: Right.
ROMANS: Shutdowns are stupid and we say it no matter what -- who the president is or who controls Congress. But, shutdowns are stupid.
When you're not paying a branch of your military -- I mean, that's not the greatest country in the --
BRIGGS: A branch that keeps drugs out of the United States.
ROMANS: Yes, it doesn't make any sense.
BRIGGS: Also, is some optimism Zach, is "The Washington Post" editorial board who writes that how to break the impasse, spurn both side's hardliners.
They say, "A deal would demand harder concessions all around. Let the two sides hash out that impasse in the legislative arena. Congress could immediately reopen parts of the government."
The problem there is Zach, are there enough centrists in today's Congress, and is there any hint that the president would sign any type of compromise?
WOLF: No, and it would -- you know, it would take 13 Republicans to get around -- you know, to get around a filibuster. It would take -- it would take 20 Republican senators to override his veto. So, we've seen maybe three who would vote to open the government without wall funding.
What we're seeing right now is such party loyalty amongst everyone right now that it's hard to even talk about centrists because they just don't control anything that's going to the floor.
[05:40:08] ROMANS: You know, we talk about all of these real-world effects of the shutdown, right?
So, they brought 30,000 IRS workers back so that we could have tax refund season on time, but maybe -- I mean, that's still unclear. I mean, if you've got people calling out of work maybe you do have some delays in tax season.
We've got Jamie Dimon from JPMorgan Chase saying like, if this keeps going you could have zero growth for the first quarter for this administration that has wanted four percent, five percent economic growth.
Larry Kudlow, the president's top economic adviser, yesterday, was in D.C. and he was saying look, they're not getting paychecks now -- these federal workers -- but all this is going to snap back when the government reopens -- listen.
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REPORTER: How many paychecks is this going to go for the workers that are affected? And you also said you expect a snapback. This is the longest shutdown ever. Why do you think it's going to snap back?
LARRY KUDLOW, DIRECTOR, NATIONAL ECONOMIC COUNCIL: It's going to snap back. That's the way it works.
But I will also say we are predominantly not a government-run economy. We're a free market economy.
(END VIDEO CLIP)
ROMANS: I would actually quibble with him on it's going to snap back because the Smithsonian -- that's $1 million in revenue a week from lost IMAX movie tickets. That's not coming back. People aren't going to see three IMAX movies; they're going to come back and see whatever --
BRIGGS: Right, it's gone.
ROMANS: Right. That revenue is gone.
And for so many of these families -- I mean, if they're dipping into their savings plans -- if they're dipping in and they're taking, you know -- I mean, that's not -- they're not going to get that back.
I mean, this is -- are they underplaying this and could that politically be a problem for them if they're kind of writing off these concerns?
WOLF: Yes. I think both sides are kind of assuming that this will just snap back. But, you know, the fact of the matter is you can't not pay people for what's going to end up -- could end up being months on end and have them dip into their retirement, have them borrow money from their parents, have them go get odd jobs. There are just effects of this that I don't think we've really understood yet, not to mention the contractors who aren't getting paid for the contracts. So, there's this ripple effect that we're just kind of starting to realize.
Maybe this will make people sort of respect government a little bit more and -- probably not the government leaders but just the -- you know, the structure of government and its function in our daily lives, from protecting us to taxes to the whole bit. This is sort of highlighting that, I think.
ROMANS: I will say I was in an airport yesterday -- two airports yesterday, and the deference to the TSA members -- workers -- was pretty --
BRIGGS: A lot of thanks.
ROMANS: I mean, a lot of people just saying thank you -- thank you for your -- every -- smiles around. You know, efficiency. You know --
BRIGGS: But wait until those lines get really bad.
WOLF: Yes.
BRIGGS: TSA, IRS --
WOLF: It's coming.
BRIGGS: -- that's what might make this thing --
ROMANS: Yes.
BRIGGS: -- end.
BRIGGS: Zach Wolf, thanks for being here -- appreciate it.
WOLF: Thanks.
BRIGGS: Ahead, another teachers' strike now brewing in a major American city. We'll have the details for you, next.
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[05:46:56] ROMANS: Global leaders -- some of them take the stage in day two of Davos, including German Chancellor Angela Merkel and the Japanese Prime Minister Shinzo Abe. The mood less optimistic than last year as top CEOs and policymakers worry about the global slowdown. They're worried about trade tensions, Brexit, and climate change.
CNN's Julia Chatterley is live for us this morning in Davos.
So, Julia, you know, a lot being made of who is not there at this confab of the world's richest and most important. JULIA CHATTERLEY, CNN INTERNATIONAL CORRESPONDENT, ANCHOR, "FIRST MOVE WITH JULIA CHATTERLEY": Yes, Christine, you hit the nail on the head, I think. The elephant in the room here is simply who isn't here.
And the risks that you mentioned there -- the U.S.-China trade war, Brexit. The leaders, obviously, of the United States, President Donald Trump, and Theresa May of the U.K. simply aren't here. So, we're talking about solutions to problems when the leaders aren't present to give us some ideas here, and I think that's the big debate right now.
But I think when it comes down to it, everybody talking about the risks to the global economic outlook and front and center there of what the United States does as far as China is concerned, and whether or not behind the scenes here any progress is ultimately being made on thrashing out some kind of deal, Christine.
ROMANS: Yes, and a sort of realization I think -- two or three have a realization that the United States is going to be a more isolated player, receding in leadership on the global stage. And what is that going to mean in terms of a rebalancing of what to expect for investors and governments?
Is there, Julia, any news being made on that China-U.S. trade negotiations front there?
CHATTERLEY: Well, the hope is that when we hear from the vice premier Wang Qishan, who's been sent from China today, that we get some gleans of whether or not China is willing to play ball here and step up and say look, we're willing to reform or we're willing to claw back on some of the concerns that the United States has with regards to like some intellectual property theft.
But who knows, Christine. You and I talk about this on a virtual daily basis.
ROMANS: Yes.
CHATTERLEY: We have to wait and see if progress can be made. Let's listen to what China has to say today. Back to you.
ROMANS: Yes. The U.S. is asking China, basically, to change its business model -- a state-run economy -- and that is going to be a hard sell.
CHATTERLEY: You're right.
ROMANS: Julia Chatterley in Davos, thank you.
BRIGGS: OK. Back here, Los Angeles teachers will be back in the classroom this morning. Union leaders say early vote counting shows more than 80 percent of teachers voted to end the 6-day strike.
Their agreement with the L.A. Unified School District calls for a gradual decrease in class sizes, more counselors, librarians, and nurses, in addition to a six percent raise for teachers. The union says it will fight alongside the district and the mayor's office for an increase in state funding.
As L.A. teachers head back to work, teachers in Denver planning to strike. The Denver Teachers Association voted overwhelmingly Tuesday to go on strike. The city's public schools, though, will be open today.
The school superintendent says the district is committed to working with the union to reach an agreement. The earliest a walkout could happen is Monday.
[05:50:01] An Alzheimer's detection breakthrough. A new study published in the journal "Nature Medicine" found that a simple blood test could predict if someone will develop Alzheimer's disease up to 16 years before symptoms begin.
The test measures changes in the levels of a protein in the blood called neurofilament light chain. Researchers say a rise in levels of the protein could be an early sign of the degenerative brain disease.
ROMANS: And that's certainly an exciting development there.
All right, let's get a check on "CNN Business" this morning.
Global stocks mostly lower amid uncertainty over those trade talks. You can see, really, searching for direction around the globe there.
On Wall Street, right now, looking at futures after a down day yesterday. They're up just a bit here.
The Dow had declined 302 points Tuesday. That's about 1.2 percent. When we look at the S&P 500, it lost a little bit more than that. And the Nasdaq fell almost two percent.
Worries about global growth amplified by the International Monetary Fund cutting its 2019 economic outlook. Also, there was a weak U.S. home sales report and new signs of trade tension between the United States and China. All of those factors dragged down stocks yesterday.
Now, Spotify making it easier for users to mute artists they don't want to hear. "The Verge" reports Spotify has rolled out a feature that lets users block an entire artist from playing. So, songs from the artist will never play from a library, a playlist, a chart list or even radio stations on Spotify.
Now, the feature comes, of course, during the height of this movement to quote "#MuteRKelly" following years of allegations of sexual misconduct. Last week, Billboard reported the singer and his longtime label Sony Music agreed to part ways.
The feature appears to only be accessible on mobile apps but once an artist is blocked for an account, it also applies to the desktop player.
Netflix has arrived -- officially arrived. Netflix scored 15 Academy Award nominations Tuesday. Ten of those nominations for Alfonso Cuaron's "Roma," including one for Best Picture. After the nominations were announced, "Politico" reported the service is now the newest member of the Motion Picture Association of America -- that's right. Netflix, the first tech company to join the 97-year- old Hollywood trade group that includes all the big studies.
BRIGGS: Fascinating. I have not seen "Roma." Have you?
ROMANS: I have not. I have heard a lot about it but I have not seen it.
BRIGGS: We do recommend "RBG" --
ROMANS: Yes.
BRIGGS: -- the CNN doc which was also nominated.
ROMANS: Two nominations.
BRIGGS: A very awesome film.
All right, an up and coming actor will play Tony Soprano in an upcoming movie. You may not know his work but you sure will recognize his name. That's next.
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[05:57:05] ROMANS: Like father, like son. Michael Gandolfini has been cast in a prequel to the groundbreaking T.V. series, "THE SOPRANOS." The 19-year-old is set to play a young Tony Soprano -- that iconic New Jersey crime boss that made his late dad, James Gandolfini, famous.
The prequel film titled "THE MANY SAINTS OF NEWARK" is cowritten by "SOPRANOS" creator David Chase.
In a statement, Michael Gandolfini says it is a profound honor to continue his father's legacy.
BRIGGS: I can't wait to see that.
Furious New Orleans Saints fans are suing the NFL. They want the outcome of Sunday's NFC championship game changed. This, the notorious no-call in the closing minutes of the fourth quarter that cost the Saints a trip to the Super Bowl.
The lawsuit on behalf of Saints season ticketholders was filed by a New Orleans-based attorney who claims the officiating blunder caused, quote, "Mental anguish, emotional trauma, and the loss of enjoyment of life."
A hearing on the suit is scheduled for Monday morning in the Civil District Court.
ROMANS: All right. Major League Baseball announcing its Hall of Fame class for 2019.
Former Yankee closer Mariano Rivera becomes the first player ever to be a unanimous selection into the Hall by the baseball writers.
Joining Rivera is Edgar Martinez. He won two batting titles at the Mariners D.H. He hit more than 300 home runs and carried a career batting average over 300.
Mike Mussina pitched, what, 18 seasons -- 10 of them with the Baltimore Orioles and eight with the Yankees -- winning 270 games.
And, the late pitching great Roy Halladay won more than 200 games and won two Cy Young Awards in different leagues. Halladay also threw a perfect game and a no-hitter in the 2010 National League Division Series. He died in a plane crash in 2017.
BRIGGS: Doc was my Little League Baseball teammate back when we were kids and it's so sad that he left us too early. Roy is on top of that spot shadow. I'm just below him. He never left a baseball game too early, though. Sixty-seven complete games.
And if I would tell parents anything about raising a professional athlete or trying to, it's -- yes, he had the talent, but it was the hard work --
ROMANS: Yes.
BRIGGS: -- determination, and grit that made that guy great. We're happy for the Halladay family but certainly sad.
ROMANS: Yes.
BRIGGS: We miss him.
ROMANS: Our best to them.
All right, thanks for joining us. I'm Christine Romans.
BRIGGS: I'm Dave Briggs. "NEW DAY" starts right now.
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SEN. MITCH MCCONNELL (R-KY), SENATE MAJORITY LEADER: The opportunity to end all of this is staring us right in the face. That's why we'll vote on this legislation.
SEN. TIM KAINE (D), VIRGINIA: The second vote is just reopen government while we work to see if we can find a compromise.
REP. NANCY PELOSI (D-CA), SPEAKER OF THE HOUSE: You cannot have the president, every time, say I'll shut down government until you come to my way of thinking.
UNIDENTIFIED MALE: She has a standing invitation here anytime she wants to come. She's got to come here and negotiate.
UNIDENTIFIED MALE: We are really playing with fire here. There's a lot of business that can't get done. SCHULTZ: I find it unacceptable that Coast Guard men and women have to rely on food pantries to get through day-to-day life as servicemembers.
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