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Early Start with John Berman and Zoraida Sambolin

The Acting A.G. Says The End Of The Mueller Probe Is Near; Four Police Officers Shot During A Drug Bust In Houston, Texas. Aired 4:30- 5a ET

Aired January 29, 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]

CHRISTINE ROMANS, CNN HOST: The acting A.G. says the end of the Mueller probe is near, but Democrats have fresh concerns about how much will be made public.

DAVE BRIGGS, CNN HOST: Kamala Harris faces the voters, what the Democratic 2020 hopeful says about policy, her record and debating Donald Trump.

(BEGIN VIDEO CLIP)

OFFICER: Bring down two more ambulances! We need more ambulances!

OFFICER: We have multiple officers shot! Multiple officers shot! We need multiple ambulances!

(END VIDEO CLIP)

ROMANS: Four police officers shot during a drug bust in Houston, Texas. Two officers in critical condition at this hour.

BRIGGS: And parts of the U.S. will feel colder than Antarctica. Day of dangerous weather ahead for the upper Midwest to the deep south. As we speak, it is 4:31 a.m. eastern time; it feels like 40 below in Fargo, North Dakota. The real cold, tomorrow. Welcome back to Early Start. I'm Dave Briggs.

ROMANS: I'm Christine Romans at 32 minutes past the hour. We begin with the clearest sign yet that the Russia investigation nearing its end. Matt Whitaker told reporters he has been fully briefed and he says -- he says the end of the Special Counsel Robert Mueller's probe is in sight.

(BEGIN VIDEO CLIP)

MATTHEW WHITAKER, U.S. ATTORNEY GENERAL: Right now, you know, the investigation is, I think close to being completed. And I hope that we can get the report from Director Mueller as soon as we -- as possible.

(END VIDEO CLIP) BRIGGS: The Russia probe has already shown signs it is wrapping up, some of Mueller's prosecutors have moved to different jobs and his office has moved some cooperating witnesses like former national security adviser Michael Flynn towards sentencing. Whitaker also rattled some Democrats when he said Mueller's decisions will be reviewed by the Justice Department.

(BEGIN VIDEO CLIP)

WHITAKER: I am comfortable that the decisions that were made are going to be reviewed, you know, either through the various means we have.

(END VIDEO CLIP)

ROMANS: Democratic Senator Chris Coons called Whitaker's remarks chilling. As things stand, the attorney general decides how much of Mueller's report is released to the public. For now that's Whitaker, but most likely Bill Barr in a few weeks. Barr vows the report will not be withheld for an improper purpose, but he won't guarantee to release it in fully to the public.

BRIGGS: There is a move in congress to ensure no matter who is A.G.; at least some of Mueller's output sees the light of day. Bipartisan legislation filed Monday would require the special counsel to summarize his findings in a report to Congress and the public.

ROMANS: All right, Roger Stone faces arraignment will be in federal court in Washington. He was indicted on seven charges including five counts of lying to Congress for his interactions with WikiLeaks. Now some expect the judge to impose a gag order on the long time Trump ally. So Stone is doing what he can to shape the narrative in advance.

(BEGIN VIDEO CLIP)

ROGER STONE, POLITICAL STRATEIGST: To storm my house with greater force than was used to take down Bin Laden or el Chapo or Pablo Escobar, to terrorize my wife and dogs is unconscionable.

(END VIDEO CLIP)

BRIGGS: That's right, the Bin Laden raid in Fort Lauderdale. As you can see from this exclusive CNN video, the FBI knocked on Stone's door and did have a warrant. And according to a lawyer, for Stone associate, Andrew Miller, Robert Mueller still wants witness testimony for a federal grand jury. He says the special counsel's team made it clear to him that an additional indictment of Stone or others is in the works.

Senator Kamala Harris making her pitch to voters at a CNN town hall in Iowa, the first major television event of the 2020 race. The California Democrat laying out her agenda, her top priority, a tax cut for the middle class. She backs Medicare for all and doing away with private health insurance; supports a green new deal to fight climate change, paid parental leave and what she calls reasonable gun control like an assaults weapons ban. She was asked about the possibility of debating with Donald Trump.

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QUESTION: How do you stay on your mess only and not get caught up in his crazy?

(LAUGHTER)

SEN. KAMALA HARRIS, D-CA.: Anyone who presents themselves as a leader and warrants to be a leader will speak like a leader and that means speaking with integrity can mean speaking truth and speaking in a way that expresses and indicates some level of interest and concern in people other than one's self.

(END VIDEO CLIP)

ROMANS: She uses the word truth a lot and I think that is on purpose. Harris rejected criticism from liberal circles about her record as a prosecutor. She believes there is still progress to be made on criminal justice reform.

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HARRIS: There are some people who just believe that prosecutors shouldn't exist and I don't think that I'm ever going to satisfy them. But I will also say that there is so much more work to do. And do I wish I could have done floor? Absolutely.

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ROMANS: Meanwhile former Starbuck's CEO Howard Schultz has Democrats concerned after announcing that he is considering a White House bid as an independent.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Don't help elect Trump, you egotistical billionaire (inaudible).

(END VIDEO CLIP )

BRIGGS: The concern among Democrats is that Schultz could help President Trump by splitting the Democratic vote. Mike Bloomberg is thinking about entering the race as a Democrat. He believes an independent run by Schultz could wind up getting the president reelected. But Schultz is not buying it.

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HOWARD SCHULTZ, FORMER STARBUCK'S CEO: About 42 percent of the electorate self-affiliates themselves, identifies themselves as an independent. Of those 42 percent they have never had a legitimate choice to vote for what they believe in.

(END VIDEO CLIP) ROMANS: We could also be hearing soon from Joe Biden, the former vice president says that he is a lot closer to making a decision about running now than he was before Christmas. Hasn't he always said February? I thought that he's been talking about sometime early this year.

[04:35:00] BRIGGS: Seems like the whole field is relatively on hold until we find out if he's in. Because if he endorses, that is a game changer.

One week from tonight, President Trump will deliver the State of the Union. The president on Monday accepted Nancy Pelosi's invitation to give his speech to Congress on February 5. It was originally scheduled for tonight, but delayed due to the government shutdown. The resolution coming after weeks of sparring between the president and house speaker. That included Pelosi calling on President Trump to delay the speech until the shutdown ended, the president firing back by canceling Pelosi's trip to Afghanistan.

Seventeen days and counting until the next potential government shutdown. A 17 member bipartisan committee from the House and Senate trying to find common ground on a funding deal that covers border security, immigration and a wall. And they're flying blind because no one knows what the president might be willing to sign.

BRIGGS: Republican senator Lamar Alexander of Tennessee tells CNN he wants President Trump and Nancy Pelosi to stay out of the talks. He says their involvement will only complicate matters. As for the chances of another shutdown, acting Chief of Staff Mick Mulvaney said this Sunday.

(BEGIN VIDEO CLIP)

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

MICK MULVANEY, DIRECTOR OF OFFICE OF MANAGEMENT AND BUDGET: Yeah, I think he actually is.

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ROMANS: And then yesterday Sarah Sanders said this.

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SARAH HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: The president doesn't want to go through another shutdown. That's not the goal. The goal is border security and protecting the American people.

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BRIGGS: That, the first press briefing of the entire year, in case you were keeping track. Meanwhile Trump campaign manager Brad Parscale pushing the president to hold firm on the border wall funding, presenting him with internal polls that show voters in key swing areas believe a border wall or fence is needed. Four Houston police officers were shot while trying to serve a search

warrant.

(BEGIN VIDEO CLIP)

OFFICER: Bring down two more ambulances! We need more ambulances!

OFFICER: We have multiple officers shot! Multiple officers shot! We need multiple ambulances!

OFFICER: They're still in the house. They're still in the house.

(END VIDEO CLIP)

BRIGGS: The incident unfolded at 5:00 p.m. yesterday. About a dozen narcotics officers and several patrol officers approaching a residence where police suspected drugs were being sold.

(BEGIN VIDEO CLIP)

ART ACEVEDO, HOUSTON POLICE CHIEF: Immediately upon breaching the door, the officers came under fire from one or two suspects inside the house. Once the officers reached the door and the gunfire began from the suspects. One of the suspects actually retreated momentarily to the back of the room and then that suspect came back and again engaged the officers in gunfire.

(END VIDEO CLIP)

[04:40:00] BRIGGS: Police returned fire killing two at the scene; two of the wounded officers were in surgery last night in critical but stable condition. The two others who were shot are expected to recover. A fifth officer suffered a knee injury.

ROMANS: All right, 40 minutes passed. We have a life threatening hard freeze making parts of the U.S. feel colder than Antarctica.

Millions of Americans at risk from the coldest air in a generation, wind chills all over the Midwest will range from minus 20 to minus 65 degrees Fahrenheit, the binding cold already causing at least one death in Minnesota, two deaths in Illinois, the governor of Illinois warning residents to watch out for hypothermia.

Schools in Chicago will be closed today. In Minnesota's twin cities, schools closed today and tomorrow, Michigan and Wisconsin both declaring states of emergency.

BRIGGS: Even in the Deep South, a deep freeze empties store shelves at this grocery store in Alabama out of the cold. The governor there is declaring a winter weather emergency.

About 3,000 flights delayed or canceled out right today and yesterday, mostly in Chicago, Atlanta hosting the Super Bowl, and Detroit. Meteorologist Pedram Javaheri with the brutal forecast.

PEDRAM JAVAHERI, METEOROLOGIST: Yes, Dave and Christine, pretty incredible pattern here in the next couple of days. And we're talking about really dangerous wind chills that are extending from about 30 to 55 below.

And some areas impacting northern Minnesota as cold as 65 below wind chill could be expected in to the next couple of mornings. And that is precisely why schools have been canceled across some of these areas. And in fact, 42 below what it feels like right now in places such as International Falls.

Now look at this trend, this is multiday trend here. So, we get not only the current shot of cold air but an additional reinforcing shot of arctic air comes in through Wednesday and Thursday. And eventually all of that cold air wants to end up across the northeast. Or be it a little bit more modified, a little less intense, but still impressive nonetheless.

And look at Chicago, low temperatures Wednesday and minus 24, 17 above here in the coldest time of year is what is considered the average low temperature. And even in Minneapolis eight is what is average low and 31 below is what we're aiming for over the next couple of days.

But again, the front extends on towards the south. Quick shot of snow showers possible in Jackson and Birmingham. But do you look at these temperatures in Chicago could easily be the coldest afternoon in recorded history and one of the coldest if not the coldest overnight ever observed in the city's history as well for the city of Chicago -- guys.

ROMANS: All right, Pedram. Please check on your elderly neighbors and don't warm the car up in the garage. We see that so often in all those cases. All right, we have some breaking news for you folks. PG&E has filed for bankruptcy.

(BEGIN VIDEO CLIP)

The California power utility faces at least $30 billion in liabilities related to last year's record setting wildfires.

The company said in a statement, our most important responsibility is and must be safety. And that remains our focus, promise to help restore and rebuild communities affected by northern California wildfires. PG&E previously declared bankruptcy back in 2001 again, this just in, PG&E as expected declaring bankruptcy.

(END VIDEO CLIP)

BRIGGS: Massive bankruptcy. All right, the White House says all options are on the table dealing with the crisis in Venezuela. Troops could even be headed to Columbia if you believe John Bolton's yellow notepad.

(COMMERCIAL BREAK)

ROMANS: The U.S. stepping up efforts to force President Nicolas Maduro from power in Venezuela. New sanctions target Venezuela's oil industry. This is an effort to deprive the Maduro government of the cash that allows him to hold on to power as for further U.S. action, national security advisor John Bolton not ruling anything out.

(BEGIN VIDEO CLIP)

JOHN BOLTON, NATIONAL SECURITY ADVISER: The president has made it very clear on this -- on this matter that all options are on the table.

(END VIDEO CLIP)

BRIGGS: You saw that yellow pad Bolton was holding? We all noticed scribblings that appear to say 5,000 troops to Columbia. Currently, there are just a few hundred U.S. troops there. Asked to example the notes, the White House telling CNN quote, as the president has said, all options are on the table.

Meantime, Juan Guaido the self proclaimed interim president of Venezuela said in an interview with CNN, espanol, we have spoken to President Trump, though it's not clear if he talked directly with the White House. More now on the crisis in Venezuela from CNN, Nick Paton Walsh in Columbia.

(BEGIN VIDEO CLIP)

NICK PATON WALSH, SR. INTERNATIONAL CORRESPONDENT: Christine, Dave, mounts in U.S. pressure against the government of Nicolas Maduro. He's going to be facing on Wednesday and Sunday renewed calls for protests inside Venezuela.

We don't know quite what a forming of people that will bring on the streets is the key test really here whether they can on the street keep up the pressure. But Juan Guaido has been clear to the people who support him, he's trying to get humanitarian aide in here.

He's trying to get his hands on assets to the Venezuelan government that have been sanctioned and taken out of their position abroad to try and ease the intense economic crisis. It's causing people frankly to be on the brink of starvation, hyperinflation, the cause of Venezuelan government just yesterday to revalue their currency.

And we've also heard from the U.S. administration, national security advisor John Bolton appealing to the Venezuelan military who stood strongly (ph) by Nicolas Maduro despite calls for them to rise up too, appealing to them to enable an orderly transition.

But we have to see that whether this external pressure really translates in to change internally. When I was there recently, we didn't get the feeling frankly the country was on the brink.

But this is a very volatile situation with a lot of pressure from abroad. And it rally isn't quite clear exactly how the security forces will play out in the weeks ahead. Christine, Dave.

(END VIDEO CLIP)

ROMANS: All right, Nicholas. Thank you so much for that. The U.S. has revealed its criminal case against Huawei, alleging the Chinese telecom giant stole trade secrets and violated sanctions on Iran

The Justice Department Monday conceals two indictments against Huawei, detailing a slue of allegations. One accuses Huawei of trying to steal trade secrets fro T-Mobile, promising bonuses to employees who collected confidential information on competitors.

[04:50:00]

The another alleges money laundering to evade Iran sanctions. The agency also revealed formal changes against Huawei CFO Meng Wanzhou. She was arrested in Canada in December and the U.S. wants to extradite her. Listen to what Secretary of Homeland Security Kirstjen Nielsen said during a press conference.

(BEGIN VIDEO CLIP)

KIRSTJEN NIELSEN, HOMELAND SECURITY SECRETARY: As the indictment charges, the alleged fraudulent financial schemes used by Huawei and it's chief financial officer were not just illegal but detrimental to the security of the United States.

(END VIDEO CLIP)

ROMANS: The Chinese Foreign Ministry responded to the allegations saying this. For some time now the United States has deployed its state power to smear and crack down on targeted Chinese companies in an attempt to kill their normal and legal business operations.

Of course the government has asked for her immediate release -- Meng Wanzhou's immediate release. This could complicate efforts by Washington and Beijing to negotiate an end to their bruising trade war. High level talks between China's vice premier and U.S. officials are scheduled to begin on Wednesday. All right. A newly discovered bug in Apple's FaceTime lets users eavesdrop on the people they're calling and even see through their front-facing camera without the other person even picking up the call.

Your phone is spying on you, America. CNN Business is next.

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[04:55:00]

BRIGGS: 04:55 Eastern Time and a dramatic rescue caught on video. Chicago officers lock arms together creating a human chain to rescue a man who fell into freezing Lake Michigan. The 33-year-old had gone into the water to save his dog.

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MALE: We saw the dog come over the ridge. So, you know, at that point, we were like there's the dog, he must be over there and I think that's when he heard us. Because then he started yelling help me, help me, help me.

(END VIDEO CLIP)

BRIGGS: Officers eventually got a hold of the man and fortunately he is OK.

ROMANS: Oh, terrifying. A Texas cemetery worried that no one would show up for a U.S. Air Force veteran's burial but thousands of complete strangers made sure that did not happen. The cemetery said they had been -- it had been unable to reach Joseph Walker's family or friends. Walker died in November. He was in the Air Force during the Vietnam War. The Central Texas State Veteran Cemetery put out a Facebook request. If you have the opportunity, please come out and attend, we do not leave veterans behind, that post said.

Our Jake Tapper and Texas Senator Ted Cruz among those who -- who echoed the call to action.

BRIGGS: The result, so many people showed up to Walker's burial yesterday that cars were backed up onto a nearby highway you can see long in the dance there. The ceremony started late to allow everyone to attend.

(BEGIN VIDEO CLIP)

MALE: It was just a testament to the bond that we share as having served, whether it be in the Army, Air Force, Navy or Marine Corps, Coast Guard, doesn't matter. We've served, so we all share that common bond and this just shows you how strong that bond is.

BRIGGS: Ceremony included a flyover followed by military honors, three rifle shots followed by a solemn horn playing "Taps".

ROMANS: All right. 57 minutes past the hour, let's get a check on CNN business this morning. Global stock markets lower on renewed trade tensions. Let's see how the markets are faring around the world. You can see a mixed performance when Asia closed. London also mixed here. On Wall Street, watching Futures this morning. They're down a little bit. You know, the DOW fell 209 points, that's less than one percent Monday. You know, it had been down as many as 413 points earlier.

The S&P 500 declined about 0.8 of a percent, the NASDAQ a little bit more than that. Here's the problem. Caterpillar declined nine percent. That is a huge one day move. It had a biggest earnings miss in a decade. And you know, it blamed that miss on lower demand in China. That is directly because of slowing economic growth there and the trade war. And then this. Chipmaker Nvidia plunged 14 percent. It cut its fourth quarter sales guidance again, deteriorating macroeconomic conditions, particularly in China.

So two big companies, two very different business models, both slammed by what's happening between the U.S. and China. All right. The 2017 tax law did not spark a boom in business investment. According to a survey by the National Association for Business Economics, four percent of companies boosted hiring because of those tax cuts. Only 10 percent of business economists said their firms stepped up investments like new factories, buying equipment, purchasing software because of the tax law.

This is the latest sign that tax overhaul has so far failed to live up to the hype, especially given its price tag. The Congressional Budget Office estimates the tax overhaul will add $1.9 trillion to the federal budget deficit over the next decade and this week I think you can expect to see the Treasury Department announces it will have to borrow $1 trillion. That's right. The government has to borrow $1 trillion this year. A new bug in Apple's FaceTime lets users eavesdrop on other people without them picking up the call. It is activated users call someone via FaceTime, swipe up to add another person to the call and add their own phone number.

The person who initiated the call is then able to hear live audio on the other person's phone even though the recipient has not accepted the call. In some cases the bug can also show live video of the other person if they press a volume button to dismiss the call. Apple said it identified a fix and it will release it in a software update later this week. Now, to avoid the bug, Dave Briggs, disable FaceTime on all your devices until Apple releases the software update.

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