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Early Start with John Berman and Zoraida Sambolin

Trump Doubts Lawmakers Will Reach An Acceptable Deal On Border Wall Funding; Federal Workers Back To Work Today; Nissan Makes The Best Selling Electric Car In The World And Now They Plan To Make Eight New Electric Models by 2022; Global Stock Markets Are Lowered. Aired 4:30-5a ET

Aired January 28, 2019 - 04:30   ET

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


[04:30:00]

MICK MULVANEY, WHITE HOUSE CHIEF OF STAFF: The president's commitment is to defend the nation and he'll do it either with or without Congress.

CHRISTINE ROMANS, EARLY START HOST: The president doubts lawmakers will reach an acceptable deal on border wall funding. Another shutdown could be less than three weeks away.

(BEGIN VIDEOCLIP)

SEN. KAMALA HARRIS (D), C.A.: We have foreign powers infecting the White House like malware.

(END VIDEOCLIP)

DAVE BRIGGS, EARLY START HOST: Kamala Harris kicked off her 2020 campaign, but will a former Starbucks exec play spoiler for the Democrats.

ROMANS: Roger Stone won't rule out cooperating with Robert Mueller. What's the next domino to fall on the Russia probe?

BRIGGS: The Interim President of Venezuela in talks to oust Dictator Nicolas Maduro who's blaming the U.S. for the upheaval.

ROMANS: And while the highly anticipated live TV production of Rent was mostly on tape. Rent live previously recorded. Welcome back to Early Start. I'm Christine Romans.

BRIGGS: The show much go on, my friend.

ROMANS: Yes.

BRIGGS: I'm Dave Briggs. 4:31 Eastern time, 800,000 federal workers back on the job today, but even with the deal to end the record length 35-day shutdown, huge issues remain. Lengthy backlogs, looming deadlines, a gigantic bureaucratic reboot, the U.S. economy recovering from and estimated $6 billion hit, slightly more than the amount the president wanted to build that wall. And the clock ticking down towards a new deadline now just 18 days away.

ROMANS: Even the presdient himself less than optimistic telling The Wall Street Journal he doubts lawmakers will reach a deal over new border wall funding that he will accept. He told The Journal another shutdown is, quote, "certainly an option and he will build the wall anyway using emergency powers if necessary." Acting White House Chief of Staff, Mick Mulvaney, also saying as much earlier Sunday.

(BEGIN VIDEOCLIP)

UNIDENTIFIED FEMALE: Is the president really prepared to shutdown the government again in three weeks?

MULVANEY: Yes, I think he actually is. Keep in mind he's willing to do whatever it takes to secure the border. But at the end of the day, the president's commitment is to defend the nation and he'll do it either with or without Congress.

(END VIDEOCLIP)

BRIGGS: President Trump also dismissing the suggestion he offer Democrats protection for dreamers in exchange for border wall funding. He told The Journal, quote, "that's a separate subject to be taken up at a separate time," but after a politically damaging five-week shutdown, Senate Republicans are not in the mood for more.

(BEGIN VIDEOCLIP)

SEN. MARCO RUBIO (R), F.L.: I don't think shutdowns are good leverage. It's a lesson I've certainly learned in my time here. There's been two shutdowns since the time I've been there, and the aggressor in neither one was the winner.

NANCY PELOSI, SPEAKER OF THE HOUSE: Shutdowns are never good policy ever. They are never to be used as a means to achieve any kind of goal. I think what will happen is that the efforts to continue to build physical barriers which have gone on in the last two administrations will continue but not to the degree that the president has requested.

(END VIDEOCLIP)

ROMANS: And by the way, for those federal workers, they're going to get paid but, you know, maybe not today. I mean, there's not like a switch that you turn the government on and off. There will be rolling hurdles here. Over the weekend, the president was scorched by some conservative pundits who said he caved to Democrats by reopening the government without wall funding. Ann Coulter called the president a wimp. He responded telling The Wall Street Journal, "I hear she's become very hostile. Maybe I didn't return her phone call or something."

BRIGGS: She suggested over the weekend that he needs to read the Constitution. California Senator Kamala Harris officially kicking off her 2020 campaign in Oakland. She promises to be a fighter for the people. (BEGIN VIDEOCLIP)

HARRIS: We must answer a fundamental question, who are we? Who are we as Americans? America, we are better than this when we have foreign powers infecting the White House like malware. Must be that true (ph).

(END VIDEOCLIP)

BRIGGS: On Sunday, former Starbucks CEO Howard Shultz announced he's seriously considering a run for the White House as a Centrist Independent.

[04:35:00]

(BEGIN VIDEOCLIP)

HOWARD SHULTZ, FORMER STARBUCKS CEO: We're living at a most fragile time. Not only the fact that this president is not qualified to be the president, but the fact that both parties are consistently not doing what's necessary on behalf of the American people and are engaged in every single day in revenge politics.

(END VIDEOCLIP)

ROMANS: Shultz is a lifelong Democrat. There are concerns in the Democratic party he could peel off voters from the eventual nominee Democratic candidate. Julian Castro says Shultz would give President Trump the, quote, "best hope of getting re-elected." Meantime, CNN's Jeff Zeleny reports Hillary Clinton is not totally giving up on her Oval Office aspirations. Jeff is reporting that Hillary Clinton is telling people she is not closing the door, but a close Clinton friend also told Zeleny, quote, it would surprise me greatly if she actually did it. In a programming note, the first major television event of the 2020 race, Senator Kamala Harris joins Jake Tapper for a CNN Town Hall live from Iowa. That's tonight 10 Eastern only on CNN.

BRIGGS: Roger Stone appears to be leaving himself a little wiggle room when it comes to cooperating with Robert Mueller. The long-time Trump ally was arrested at his home in Florida last week by heavily armed FBI agents. He faces charges of obstruction, witness tampering, and five counts of lying to Congress. The Special Council's indictment was the first time prosecutors alleged people close to the president coordinated with Stone as he sought out stolen emails from WikiLeaks. Mueller's team asked the judge to secretly indict Stone. They argued any publicity would increase the risk of him destroying evidence, an argument Stone rejects.

(BEGIN VIDEOCLIP)

ROGER STONE: I've been under investigation for two years. I've destroyed nothing, but if I were going to destroy evidence, wouldn't I have done it a long time ago? They could simply have called my lawyers and I would have turned myself in.

(END VIDEOCLIP) ROMANS: President supporters are quick to point out once again Stone's indictment contains no charges of conspiracy, but Mueller's team has documented a series of lies by Trump advisors that masked efforts to develop ties to Russia. Those lies came before and after the election in public and in private. The question is why. Stone will be arraigned tomorrow in Washington. Jessica Schneider has more.

JESSICA SCHNEIDER, CNN CORRESPONDENT: Dave and Christine, Roger Stone has been making the media rounds all before he gets to the D.C. courthouse on Tuesday and before he appears before the same judge who is overseeing both Paul Manafort and Rick Gates cases, and she is definitely tough. So perhaps Roger Stone may be trying to get the last word in before any possible gag order, but Roger Stone, though, leaving the door open to cooperation with the Special Council, Robert Mueller, and also saying he would tell the truth about his communications with Donald Trump, which he says never involved anything about Russia.

(BEGIN VIDEOCLIP)

UNIDENTIFIED MALE: Any chance you'll cooperate with Special Council Robert Mueller if he asks?

STONE: You know, that's a question I would have to - I'd have to determine after my attorneys have some discussion. If there's wrongdoing by other people in the campaign that I know about, which I know of none, but if there is, I would certainly testify honestly. I'd also testify honestly about any other matter including any communications with the president. It's true that we spoke on the phone, but those communications are political in nature, they're benign, and there is certainly no conspiracy with Russia.

(END VIDEOCLIP)

SCHNEIDER: Now, Roger Stone has repeatedly said he would not testify against the president. Also Stone has said he has never discussed the possibility of a pardon with the president and, of course, he continues to maintain that he is innocent despite the text messages and emails the Special Council has and stands by his contention that there was never any collusion with Russia. Christine and Dave -

BRIGGS: OK, Jessica, thanks. President Trump and his son-in-law, Jared Kushner, thought the Russia controversy would end with the firing of National Security Advisor Michael Flynn. The incident recounted by former New Jersey Governor, Chris Christie, in a new memoir called "Let Me Finish". As reported by The New York Times, Christie and his wife has lunch with the president in early 2017, a day after Flynn was pushed out for lying to the Vice President about contacts with the Russian Ambassador.

ROMANS: Christie writes the president said to him this Russia thing is all over now because I fired Flynn. Christie said it sounded so naive he laughed and said, "sir, this Russia thing is far from over." Christine writes Trump replied, "what do you mean? Flynn met with the Russians. That was the problem. I fired Flynn. It's over." Christie recalls Kushner told him he was crazy when Christie predicted they would still be discussing the Russia thing a year later.

Riot (ph) efforts underway inside Venezuela to force out Nicolas Maduro. Self-proclaimed Interim President Juan Guaido telling The Washington Post he has negotiated with military and civilian officials right now. So far Maduro's Defense Minister and other top brass are vowing their allegiance to him. Maduro blames a U.S.-led coo for the political upheaval in Venezuela.

[04:40:00]

BRIGGS: National Security Advisor, John Bolton, warning any violence of intimidation against U.S. Diplomatic personnel or Guaido will be viewed by the U.S. as a grave assault on the rule of law. He says, it will be met with a, quote, "significant response."

Meanwhile, the deadly protest we witnessed last week in Venezuela could grow in the days ahead. More now from Stefano Pozzebon in Caracas.

STEFANO POZZEBON, JOURNALIST: Yes, Christine, Dave, yesterday late night Juan Guido called for fresh new protests for this week, this Wednesday and the following Saturday. Again Venezuelans will take on the streets to demand fresh and fair elections and to demand the resignation of Nicolas Maduro.

At the same time both leaders, both Nicolas Maduro and Juan Guaido, on Sunday pitching to the military to lure them to join them on their side. And while Maduro demanded loyalty to the fatherland and to his rule to his troops, Juan Guaido promised the amnesty and the pardon for those troops who would effectively defect Mr. Maduro and switch the side to the opposition.

And with new protests set for this week, and another complete international dimension around this crisis, the pressure on Nicolas Maduro is only going to increase. Christine, Dave.

ROMANS: All right, Stefano in Caracas for us. Thank you for that.

At least three people are dead, more than 170 hurt after a tornado hit Havana, Cuba. The tornado caused damage and flooding in parts of the capital. Initial reports indicates, strong winds caused damaged to public and residential buildings.

The full extent of damage and strength of the storm will be assessed in the coming hours. The country's civil defense has asked people to remain indoors during the overnight hours.

BRIGGS: All right, ahead a Florida man goes fishing. His catch, a grenade, but what he did with it is not recommended.

(COMMERCIAL BREAK)

[04:45:00]

ROMANS: All right, Facebook plans to integrate it's messaging services. According to "The New York Times" Facebook plans to combine WhatsApp, Instagram and Facebook Messenger. The three services would remain separate apps, but their infrastructure behind the scenes would be the same.

Now, what does this mean. I mean, this could effect the billions of people who use these apps. According to Facebook's most recent earnings report, an estimated 2.6 billion, with a B, people use Facebook, WhatsApp, Instagram or Messenger each month.

The move could allow the Facebook to build a single user profile from it's different apps to better target adds to you. Facebook says, the apps could also get an end to encryption, which shields messages from being read outside of the conversation.

As spokesperson from Facebook said, as you would expect, there's a lot of discussion and debate, so we begin the long process of figuring out all the detail of how this will work. Facebook acquired WhatsApp in 2014 and Instagram in 2012.

BRIGGS: A measles outbreak has lead to a state of emergency in Washington State. Officials there are 35 confirmed cases, 30 of them involving people who have not been vaccinated for the disease.

More than two-thirds of the cases involve children under 11. The State Military Department organizing assistance to the Department of Health and local offices. The problem has spread to Oregon as well. Officials say, people infected with measles have recently visited the airport, hospital, schools, restaurants and a Portland Trailblazers home game.

ROMANS: Yes, this is one of the most infectious diseases on the face of the earth. According to some of these doctors, you cough or sneeze if you have the measles; hours later those droplets are still circulating in the air to get somebody else sick. Also, there's been some discussion about whether Oregon and Washington have more permissive state laws ...

BRIGGS: That was going to be my question, is ...

ROMANS: ... to allow people to not immunize your children. You know, it's all about the herd, really, when you talk about immunizations. If everybody gets immunized ...

BRIGGS: So, they do have the most permissive?

ROMANS: That -- yes, it looks like they are more permissive than some other states. All right, if you or someone you know takes a blood pressure medication, listen up. The FDA is warning that product recalls are causing a shortage of a common class of blood pressure drugs called ARBs. Officials say medicines containing Valsartan are already in short supply. Two similar drugs may face shortages soon.

Now these drugs were recalled after, get this, it was found they were -- they contained an impurity that causes a cancer risk. The FDA had to devise a special test after it learned some ingredients imported from one Chinese company were tainted. BRIGGS: All right, Nissan makes the best selling electric car in the

world and now they plan to make eight new electric models by 2022. CNN Business is next.

(COMMERCIAL BREAK)

[04:50:00]

ROMANS: A Florida man who went magnet fishing for salvage items wound up reeling in an authentic WWII hand grenade. What did he do next? He tossed it in his trunk, drove to the local Taco Bell, and then called police. Needless to say, that created more excitement then the two dollar burrito combo. The bomb squad was called to remove the device and the restaurant was evacuated. The grenade was safely disposed of and the Taco Bell has since reopened.

BRIGGS: The top honor at last nights Screen Actors Guild Awards, going to the 2018 box office champ.

FEMALE: And the actor goes to, Blank Panther.

BRIGGS: Ground breaking superhero film was a surprise winner, the best motion picture cast ensemble. Glenn Close won the award for best lead female actor for The Wife, the win setting her up as the clear Oscar front runner. While Rami Malek won best lead actor for his role in Freddy Mercury as Bohemian Rhapsody.

ROMANS: The awards for supporting roles when to Emily Blunt, for A Quiet Place. And Mahershala Ali for his role in Greenbook. Another big highlight, the wonderful actor, Alan Alda, he has Parkinson's Disease, he was there receiving the SAG lifetime achievement award.

ALAN ALDA, ACTOR: It may never have been more urgent to see the world from another persons eyes, and when a culture is divided so sharply, actors can help at least a little just by doing what we do. And the nice part is, it's fun to do it. So my wish for all of us is, let's stay playful, let's have fun and let's keep searching. It can't solve everything, but it wouldn't hurt.

(END VIDEOCLIP)

[04:55:00]

ROMANS: I just love him. Alan Alda, just -

BRIGGS: He's one of a kind.

ROMAN: - a real - just a talent of a generation. On the TV side, a big night for The Marvelous Mrs. Maisel. It swept the comedy categories. This Is Us took home the best drama ensemble award.

BRIGGS: A big night for Rent heads, go off on the wrong foot. The words "previously recorded" the first thing on screen at the start of a live broadcast of the Pulitzer Price wining Broadway musical on Fox. As it turned out, the show was mostly not live because of an injury suffered by Brennin Hunt who played one of the lead roles. (BEGIN VIDOECLIP)

VANESSA HUDGES: Last night during our performance in front of a live audience, one of our cast members sustained an injury. A visit to the hospital confirmed that Brennin Hunt, our Roger, has broken his foot and will be unable to perform tonight.

(END VIDEOCLIP)

BRIGGS: There was a live finale. The original Broadway cast joined the Fox players on stage for an encore of Rent's inspiring anthem Seasons of Love.

ROMANS: That song's going to be in my head all day. I haven't seen it -

BRIGGS: But you're not going to sing along.

ROMANS: - it was always going to be taped for me because, you know, I have to go to bed at 7 o'clock, but I'm going to watch it anyways.

BRIGGS: I thought the show had to go on? I thought you'd have the stand in fill in for the broken foot -

ROMANS: I know. I'm surprised they did not have understudies -

BRIGGS: Yes.

ROMANS: - but we'll see. All right, between the shutdown drama, the Roger Stone indictment, a good week for Saturday Night Live.

(BEGIN VIDEOCLIP)

UNIDENTIFIED FEMALE: We have to take a Marie Kondo approach to cleaning up this country. If something doesn't spark joy, throw it out. And you know what doesn't spark joy in me? Guatemala.

UNIDENTIFIED MALE: You said that you didn't understand why furloughed government workers needed food assistance because they could just, quote, "take out low interest loans instead."

UNIDENTIFIED FEMALE: Right. Well that was silly of me. I simply meant that there are other ways of getting money. Like they could have liquidated some of their stocks or sold one of their paintings. I mean, even if they sold a lesser Picasso, that's still going to get your through a week or two of yacht maintenance.

UNIDENTIFIED MALE: And haven't these ridiculous accusations made you poverty stricken as well?

STEVE MARTIN: Oh yes, that's right. I'm broke from my legal battles and now no one will buy my books.

UNIDENTIFIED MALE: Well, why will no one buy your books?

MARTIN: Because they're bad. UNIDENTIFIED MALE: Thank you for your time, Mr. Stone.

MARTIN: Pardon me?

UNIDENTIFIED MALE: I said thank you.

MARTIN: Oh no, that wasn't a question. I was saying that to the president. Pardon me.

(END VIDEOCLIP)

ROMANS: Steve Martin, Steve Martin, Steve Martin -

BRIGGS: Steve Martin.

ROMANS: - love it. All right, let's go check in CNN Business this morning. Global stock markets are lower. We had high level U.S.- China trade talks this week, so that is really going to direct things here. You can see that European markets have just opened and they are down just very slightly. I would call that searching for direction, but when you look at U.S. Futures, a little more direction there. The Dow Futures down about 105 points right now.

So the Dow climbed 184 points on Friday. The NASDAQ was up 1.3 percent. The S&P 500 closed at 0.9 percent. The Dow, the NASDAQ were up for the week, narrowly extending their winning streak for now, the fifth week in a row. This is the longest streak for the Dow since July and for the NASDAQ since November 2017.

A rising number of U.S. businesses saw falling sales and lower profits at the end of the year, another sign the American economy could be slowing. Economic growth could be slowing. The number of businesses reporting falling sales nearly tripled from 6 percent to 17 percent. That's according to a survey by the National Association for Business Economics. The holiday season did not seem to bring any relief. 20 percent of businesses said they saw profits fall over the survey period. That's up from just 8 percent in October, so something happened at the end of the year. Signs of a global slow down escalating trade tensions. Stock market volatility all created uncertainty for businesses and for investors.

All right, Nissan is planning to expand its line of electric cars. Nissan makes the best-selling electric car in the world, the Nissan Leaf. Over 380,000 Nissan Leafs have been sold, but it's Nissan's only widely available electric car until now. Nissan has announced plans for eight new electric models by 2022.

BRIGGS: Nissan describes the IMs which debuted at the North American International Auto Show in Detroit earlier this month as an elevated sports sedan. Nissan says drivers can have a human-like 3D avatar given them directions, offer advice, or just talk. The avatar can be made to look like a family member, a friend just for company.

ROMANS: Interesting.

BRIGGS: This is fascinating. ROMANS: All right. All right, who knew?

BRIGGS: Distractive driving - we're encouraging it now.

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