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Early Start with John Berman and Zoraida Sambolin

Senate Votes Down Both Shutdown Bills, White House Demands Down Payment on Wall; United States Government Employees Ordered to Leave Venezuela; Russia Slams Trump's Stance on Venezuela. Aired 4:30-5a ET

Aired January 25, 2019 - 04:30   ET

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


(BEGIN VIDEO CLIP)

[04:30:18] DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They pay sort of a prorated down payment.

SEN. BEN CARDIN (D), MARYLAND: I have no idea what that means.

(END VIDEO CLIP)

CHRISTINE ROMANS, CNN ANCHOR: The dynamics have not changed. The urgency has. Another no pay day Friday. Now a dozen senators working to bridge the gap to end the shutdown.

DAVE BRIGGS, CNN ANCHOR: Michael Cohen will go before Congress after all. He plans to comply with a subpoena from the Senate Intel Committee.

ROMANS: The U.S. ordering most personnel out of Venezuela, the crisis in the country deepens, both sides struggling for control.

BRIGGS: And a daring rescue caught on video. Officers try to save a teenager who fell through the ice go under themselves.

Welcome back to EARLY START, everybody. I'm Dave Briggs.

ROMANS: It's Friday, I'm Christine Romans.

BRIGGS: It is indeed. We made it.

ROMANS: It is Friday but it is not a payday again for federal government workers.

BRIGGS: It is a zero, zero, zero payday.

ROMANS: The second no payday Friday. 800,000 federal workers will miss this paycheck again today, day 35 of the partial government shutdown. Democrats and Republicans dueling bills to reopen the government, both failed in the Senate. Remarkably six Republicans crossed the aisle to vote for the Democrats' bill that had no border wall money. Now lawmakers are working behind the scenes on a solution, more than a dozen senators from both parties trying to put pressure on both sides.

BRIGGS: They want President Trump to reopen the government temporarily and House Speaker Nancy Pelosi to make more commitments on border security. The White House indicating it would be open to a three-week stopgap funding bill only if it included a, quote, "large down payment on the wall."

(BEGIN VIDEO CLIP)

TRUMP: One of the ideas suggested is they open it and they pay sort of a prorated down payment for the wall, which I think people would agree that you need.

(END VIDEO CLIP)

BRIGGS: Democrats greeted that idea skeptically.

(BEGIN VIDEO CLIP)

MANU RAJU, CNN SENIOR CONGRESSIONAL CORRESPONDENT: He's talking about a prorated down payment for the border wall.

CARDIN: I have no idea what that means.

(END VIDEO CLIP)

ROMANS: Speaker Pelosi herself called the president's down payment not reasonable. A senior Democratic aide tell CNN, quote, "The idea he has leverage here is not in touch with reality." One big issue remains. A lack of clarity on what the president would accept in any type of deal.

BRIGGS: CNN learning exclusively about one possible tactic. That's the White House preparing a draft proclamation to declare a national emergency along the southern border and identifying more than $7 billion in potential funds to build the wall. As soon as today the White House may invite a group of eight congressional leaders for a meeting with the president.

ROMANS: All right. The shutdown has tempers flaring in the Senate. Typically mild mannered Colorado Democrat Michael Bennet unloading on Senator Ted Cruz. Watch.

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SEN. MICHAEL BENNET (D), COLORADO: These crocodile tears the senator from Texas is crying for first responders are too hard for me to take. When the senator from Texas shut this government down in 2013, my state was flooded. It was under water, people were killed.

This idea that he was going to build a medieval wall across the southern border of Texas, take it from the farmers and ranchers that were there, and have the Mexicans pay for it, isn't true. That's why we're here. Because he's now saying the taxpayers have to pay for it.

(END VIDEO CLIP)

BRIGGS: That was because Ted Cruz was arguing about a bill Republicans proposing just to pay the Coast Guard one Democrats denied.

Some government workers have been overwhelmed by the emotional and financial burden of the shutdown. TSA officers living in their cars in Hawaii unable to afford the commute between home and the airport have started submitting resignations.

In Illinois Eric Schwab who was once homeless is donating groceries to TSA agents at the Quad City International Airport.

(BEGIN VIDEO CLIP)

ERIC SCHWAB, COLLECTING DONATIONS FOR GOVERNMENT WORKERS: I get emotional when I think about doing it and the people who have contacted me -- of our agents, of our federal agents who are literally working without a check.

(END VIDEO CLIP)

ROMANS: U.S. federal courts run out of operating funds today. Prosecutors handling cases from sex crimes to illegal border crossings are warning austerity budgets will weaken law enforcement. In Washington state unemployment benefits are being extended to employees who are working but not receiving pay during this shutdown. New Mexico, California, Vermont and Colorado also offering extending unemployment benefits to federal workers.

BRIGGS: Starting today the U.S. will send asylum seekers at the southern border back to Mexico.

[04:35:05] Some individuals who arrive at California's San Isidro ports of entry will be given a notice to appear in U.S. court. They'll then be told to remain in Mexico until that court date arrives. The action applies to immigrants primarily from Central American countries. Those with a well-founded fear of staying in Mexico along with unaccompanied minors will not be forced to return.

ROMANS: House Oversight chairman Elijah Cummings says his committee is demanding White House documents to determine if an explosive report about senior Trump adviser Jared Kushner is true. NBC News reporting that two White House security specialists rejected Kushner's application for a top secret clearance but were overruled by their supervisor. Two sources telling NBC that supervisor Karl Klein overruled career security experts in at least 30 cases. Thirty cases. A number the sources called unprecedented.

BRIGGS: NBC reports that after Kushner received top secret clearance, his file went to the CIA for approval of the very highest clearance level. Two sources tell NBC that CIA balked and called the White House to ask how Kushner earned even a top secret clearance.

CNN has not independently confirmed the NBC report. We reached out to the White House and Kushner's attorney but so far they have not commented. The White House and the CIA told NBC they don't comment on individual clearances.

Former Trump lawyer Michael Cohen has been subpoenaed by the Senate Intelligence Committee to testify in mid-February. Cohen intends to be there. The questioning expected to take place behind closed doors. A source tells CNN Cohen has the same concerns about the safety of his family that led him to postpone his appearance before the House Oversight Committee.

The subpoena is the first of several Cohen could face before he reports to prison on March 6th to serve a three-year sentence.

ROMANS: All right. Senator Elizabeth Warren proposing a new tax on the wealthiest Americans. According to documents provided by her presidential campaign the plan would impose a 2 percent tax on Americans whose net worth exceeds $50 million, with an additional 1 percent levy on billionaires.

Now it does not specifically address marginal tax rates. However, there are questions about whether Senator Warren's plan is permitted by the Constitution. The Constitution gives Congress the power to levy taxes such as tariffs on commerce but the Constitution places limitations on so-called direct taxes, though the definition of these is unclear. But clearly this is a populist play for her.

Her plan is not the only proposal made on how to tax the wealthy. Newly elected Congresswoman Alexandria Ocasio-Cortez proposed taxing the wealthy as high as 70 percent, you know, a marginal tax rate, to fund climate change plan called the Green New Deal.

Aides for Senator Warren told CNN they're confident their plan would survive any legal challenges posed by questions over its constitutionality. But, you know, the details are -- the details might be less important than what is obviously an emotional play to people, to populist --

BRIGGS: Yes.

ROMANS: But, look, you know, one -- there is this big discuss right now that income inequality in this country, with so much of the recovery going to the top, is what fueled the rise of Donald Trump and the populism we're seeing today and the nationalists we're seeing around the world.

BRIGGS: Count on that being mischaracterized as we move to 2020.

ROMANS: Yes.

BRIGGS: And will become a central issue.

Ahead, though, la huge relief for a family in North Carolina. A little boy who vanished three days ago has been found alive.

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[04:42:38] BRIGGS: The latest on the crisis in Venezuela now. The State Department ordering all non-emergency government employees to get out of Venezuela. There is a growing diplomatic crisis and a power struggle as President Trump has recognized opposition leader Juan Guaido as the interim president. A significant blow to the Nicolas Maduro regime. Secretary of State Mike Pompeo making the president's case.

(BEGIN VIDEO CLIP)

MIKE POMPEO, SECRETARY OF STATE: The time for debate is done. The regime of former President Nicolas Maduro is illegitimate. His regime is morally bankrupt.

(END VIDEO CLIP)

BRIGGS: At least 26 people have now been killed in the violence. Overnight interim president Juan Guaido called on Venezuelan diplomats to stay in the U.S. after Maduro ordered the embassy in the United States to close.

Stefano Pozzebon has the latest from Caracas.

STEFANO POZZEBON, JOURNALIST: Well, Christine, Dave, neither Nicolas Maduro nor the White House are walking away from the dramatic standoff that is taking place here in Caracas around the U.S. embassy.

Yesterday, Nicolas Maduro ordered the closure of the Venezuelan embassy in Washington and of every consulate of Venezuela in the United States, and reiterated that the U.S. administration had until Sunday to evacuate the embassy here in Caracas or face the consequences of this rupture of the international diplomatic relations between Caracas and Washington.

But on the other hand, the U.S. administration is saying loud and clear that it does not recognize the rule by Nicolas Maduro and he says that those words and orders are meaningless. And as we see this brewed up -- this diplomatic crisis that could definitely turn out into a very tense international standoff between Caracas and Washington is different, it's difficult to see how this could translate for the average Venezuelan people, for the people who are feeling the burn of five years of deep economic collapse and have the feeling that this crisis has only just begun -- Christine, Dave.

ROMANS: All right. Thank you so much for that from Caracas.

China, Turkey and Syria now joining Russia in criticizing the U.S. for recognizing Guaido as Venezuela's president.

Let's shift from Caracas to Moscow and bring in CNN's Fred Pleitgen.

Frederik, you spoke exclusively with Russia's deputy foreign minister.

[04:45:02] What did he say and what is Russia's stake in all of this?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, their stakes are huge. And especially in the past couple of months, the past couple of years, Christine. They've really expanded their relations with the Venezuelans. They have a new oil deal that they put in place just a couple of months ago. They recently flew two strategic nuclear capable bombers to Venezuela and talked about doing that in the future as well. So the deputy foreign minister told me, yes, the Russians are squarely

on the side of Nicolas Maduro and also warned the U.S. against any possible intervention. Here's what he said.

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SERGEI RYABKOV, RUSSIAN DEPUTY FOREIGN MINISTER: There are dangerous signs of something going on along these lines. We warn everyone, and not just the U.S. but some others who may entertain these ideas, from this type of action. The resort to military power would be catastrophic.

(END VIDEO CLIP)

PLEITGEN: Vladimir Putin also pledging his support for Nicolas Maduro yesterday in a phone call between those two men. But of course, guys, if you have a senior Russian official in an interview, you have to ask him about President Trump and his possible ties to Russia. Here's what the deputy foreign minister said about that.

(BEGIN VIDEO CLIP)

PLEITGEN: There are even some questioning whether President Trump is an agent of Russia. What do you make of that?

RYABKOV: I mean, it's completely, completely out of touch with anything that could be conceived as, you know, anywhere close to the reality.

(END VIDEO CLIP)

PLEITGEN: So not too happy hearing that question, trying to shoot it down. The Russians also despite all the evidence that we've seen over the past couple of years still denying that they meddled in the 2016 presidential election -- guys.

ROMANS: Yes, of course. All right. Fred Pleitgen, great get. Thank you so much for bringing it to us. Thanks, Fred.

All right. One iconic brand will not be running commercials during the Super Bowl. Why Coca-Cola is making the change. CNN Business is next.

(COMMERCIAL BREAK)

[04:51:29] BRIGGS: Police have identified three of the five people killed in that mass shooting inside a SunTrust Bank in Central Florida. All three are women identified as employees, Marisol Lopez and Ana Pinon-Williams, also customer Cynthia Watson. The identities of the other two victims are not being released by police at the request of their families.

Another bank employee was in a backroom and escaped after hearing shots fired. The suspected gunman has been charged with five counts of capital murder. According to police documents provided to CNN, during high school he said he had dreams of killing students and once told a classmate he wanted to commit suicide by cop and take hostages.

ROMANS: Florida's secretary of state out of a job this morning after a 14-year-old photo surfaced of him wearing black face at a party. Michael Ertel resigned yesterday after less than a month in office. The photos from a private Halloween party were obtained by the "Tallahassee Democrat" newspaper.

They show him wearing red lipsticks, a New Orleans Saints bandana, a "Katrina Survivor" T-shirt, fake breasts and large earrings, all just months after Hurricane Katrina left 1800 people dead. He has confirmed to the newspaper it is him in those photos adding, quote, "There is nothing I can say."

BRIGGS: In North Carolina, a happy ending to a potentially tragic story. A missing 3-year-old boy has been found alive and well. Casey Hathaway disappeared Tuesday after playing outside of his great grandmother's home. Hundreds of searchers and volunteers combed the area in Craven County until he was located Thursday night. Authorities say Casey has now been reunited with his family.

(BEGIN VIDEO CLIP)

BRITTANY HATHAWAY, CASEY'S MOTHER: We just want to tell everybody that we're very thankful that you took the time out to come search for Casey and pray for him. And he is good. He is good. He is up and talking. He's already asked to watch Netflix, so he is good. He is good.

(END VIDEO CLIP)

BRIGGS: A good sign. Casey said to be in good health. He is being evaluated at a local hospital.

ROMANS: All right. A Detroit family kicked off an American Airlines flight allegedly over body odor complaints. Now they want answers. Yossi Adler, his wife and 19-month-old daughter were heading back home to Detroit when they were suddenly escorted off the plane.

(BEGIN VIDEO CLIP)

YOSSI ADLER, FAMILY TAKEN OFF FLIGHT: All of a sudden, they took us off. They closed the gate and they said, sorry, sir, some people complained you had body odor when we wanted to be back on. I want them to own up to it, what really happened and to tell me the truth. What was it.

(END VIDEO CLIP)

ROMANS: OK. American Airlines confirmed body odor was the explanation given. The Adlers say they were told their luggage would be taken off the plane, but that never happened. The family finally made it back to Detroit hours later and reclaimed their luggage.

Still a lot of questions for American there.

BRIGGS: Three patients at a Columbus, Ohio, hospital died when one of its doctors ordered lethal doses of pain medication. The Mount Carmel Health System had been altered to potential problems -- alerted, excuse me -- with Dr. William Husel who has been since fired. They say at least 34 patients received excessive doses. Husel was treating patients who were near death. CNN has been unable to reach Husel who has worked at the hospital for five years. Officials say it's possible they could find more victims as their investigation continues. The Ohio Health Department is also investigating.

ROMANS: California Fire officials say Pacific Gas and Electric is not to blame for a fire that killed 22 people in 2017. They say the Tubs Fire that also destroyed more than 5600 structures was caused by a private electrical system. California's governor says PG&E had been linked to 17 other fires in 2017. And the utility could be on the hook for damages from last year's Camp Fire, the most destructive wildfire in state history.

[04:55:09] BRIGGS: A U.S. Coast Guard search under way this morning for a Royal Caribbean crew member who went overboard. Fellow crew members on the Majesty of the Seas witnessed the unnamed employee go overboard just after 2:00 a.m. Thursday. The ship was at the end of a cruise to the Bahamas on its way back to Port Everglades, Florida. And this reminder, Coast Guard crew members are not being paid for their work during the government shutdown.

ROMANS: How far would you go to help a sick child? It's a real tough one here, folks. An Indiana school superintendent may have gone too far. Casey Smitherman is charged with fraud. She's accused of pretending a sick student who did not have health insurance was her own son so he could get medical treatment. Police say she took the 15-year-old to an urgent care facility after he missed school and showed symptoms of strep throat.

BRIGGS: Smitherman was denied service because the child was a minor and she wasn't his guardian. She then took him to another clinic where she checked the student in under her son's name and insurance. The teen's actual guardian reported the incident to police and Smitherman turned herself in. The school board is standing by their superintendent who they say did the right thing the wrong way. They issued a statement saying she made an unfortunate mistake out of concern for the child's welfare.

ROMANS: Heart-pounding video out of Toledo. Police officers fall through ice during a frantic rescue. They rushed to the scene after word a 17-year-old was trapped in a frozen pond. Officers walk on the ice, close enough to the teen to throw a flotation device attached to a rope. You can see the teen in the background. That's when things took a turn for the worse. The ice starts breaking, an officer falls in.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hold on to the roof. All right. Give me your hand. Give me your hand. Give me your hand. (EXPLETIVE DELETED).

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ROMANS: Fortunately everyone out of the water, out of the ice, and is fine.

BRIGGS: Whew. File this one under no general left behind. Retired Army veteran Anthony Maggert who lost his leg in Afghanistan was driving on the highway when he stopped to help someone with a flat tire. It turns out that someone was General Colin Powell. It took 10 to 15 minutes to change the tire but Maggert grabbed a selfie with Powell and says being with him felt like a lifetime. Both men were actually headed to Walter Reed Medical Center for appointments.

General Powell later thanked him on Facebook in a post saying, "You touched my soul and made my day."

ROMANS: All right. Let's get a check on CNN Business this Friday morning. Global stock markets are higher despite Commerce Secretary Wilbur Ross saying the U.S. is still, quote, "miles and miles from a trade deal with China." You can see higher in Asia. Those are all closed now. Europe has opened up just a little bit. I would call that still kind of searching for direction.

And on Wall Street futures are up. Maybe a triple-digit advance but half of 1 percent. The Dow closed 22 points lower on Thursday. That's -- we'll call that nothing.

(LAUGHTER)

ROMANS: A wash. The S&P 500 and the Nasdaq both closed just up tiny, tiny amounts.

Facebook CEO Mark Zuckerberg joining local companies to raise big money in San Francisco for help fight the housing crisis. Zuckerberg and local companies are launching an investment fund partnership for the Bay's future to raise $500 million.

BRIGGS: That's to help fight the area's housing crisis. They say the fund will also try to mitigate some of the transportation challenges presented by the Bay Area's geography. Earlier this month Microsoft pledging $500 million to tackle homelessness in Seattle, $25 million of that commitment will go towards philanthropic grants to address homelessness in the area.

You won't see one iconic brand running commercials during the Super Bowl. "Variety" reports Coca-Cola will run a commercial just before kickoff of the big game but will not air a commercial during the game. Coke senior vice president says the pregame commercial will be 60 seconds and has themes of diversity and inclusion.

Earlier this week, we learned that the Super Bowl and CBS had denied a medical marijuana ad which is a pretty interesting stance.

ROMANS: Interesting. Interesting.

BRIGGS: For them to take being that both these states are legal marijuana states, California and Massachusetts.

EARLY START continues right now with day 35 of the government shutdown. (BEGIN VIDEO CLIP)

TRUMP: They pay sort of a prorated down payment.

CARDIN: I have no idea what that means.

(END VIDEO CLIP)

ROMANS: The dynamics have not changed. The urgency has. Another payday comes and goes, a dozen senators trying to bridge the gap to end the shutdown.

BRIGGS: Michael Cohen will go before Congress after all. He plans to comply with the subpoena from the Senate Intel Committee.

ROMANS: The U.S. ordering most personnel out of Venezuela, the crisis in the country deepens. Both sides struggle for power.

BRIGGS: A huge relief, surprising given what you saw there.