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Early Start with John Berman and Zoraida Sambolin

President Trump's State Of The Union Theme Will Be "Choosing Greatness"; Federal Prosecutors Subpoena Trump Inaugural Committee; U.S. And South Korea Reach Deal Over Cost Of U.S. Troops; Actor Liam Neeson Reveals Racist Revenge Story. Aired 5:30-6a ET

Aired February 05, 2019 - 05:30   ET

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


[05:30:00] BORIS SANCHEZ, CNN ANCHOR: -- related to the president's inaugural committee. Prosecutors are probing possible conspiracy and illegal donations from abroad.

CHRISTINE ROMANS, CNN ANCHOR: A deal reached to keep tens of thousands of U.S. troops in South Korea. It's a major commitment ahead of the president's next summit with Kim Jong Un.

SANCHEZ: And, actor Liam Neeson says he once walked the streets waiting to kill someone because of their race. A startling admission.

ROMANS: Yes.

SANCHEZ: We'll tell you more about it soon.

Welcome back to EARLY START. I'm Boris Sanchez in for Dave Briggs.

ROMANS: And I'm Christine Romans. Nice to see --

SANCHEZ: Great to see you.

ROMANS: -- this Tuesday morning. It is exactly 30 minutes past the hour.

And tonight, President Trump delivers his second official State of the Union address. It will be his first in this new era of divided government.

Democratic House Speaker Nancy Pelosi will sit over his shoulder after outmaneuvering him during the government shutdown.

The speech comes at a critical point in his presidency with the divided Congress, another shutdown looming over the border wall, the Mueller investigation. Those and other issues the focus this week of Congress and elsewhere.

Administration officials have been previewing the president's address. The theme tonight, "Choosing Greatness."

(BEGIN VIDEO CLIP)

KELLYANNE CONWAY, WHITE HOUSE COUNSELOR: This president is going to call for an end to the politics of resistance and retribution. He's calling for cooperation and he's calling for comity -- C-O-M-I-T-Y -- and also compromise.

(END VIDEO CLIP)

SANCHEZ: Vice President Mike Pence and the acting chief of staff Mick Mulvaney were among the officials briefing surrogates at the White House last night. They say the speech will be about 50 percent foreign policy. It will touch on infrastructure and lowering drug costs, two areas where there might be some common ground with Democrats.

Of course, illegal immigration and the border wall still big issues. They may lead to another lapse in government funding late next week.

On that topic, Republican Sen. Lindsey Graham had this message for his colleagues.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: To every Republican, if you don't stand behind this president, we're not going to stand behind you when it comes to the wall. This is the defining moment of his presidency. It's not just about a wall, it's about him being treated different than every other president.

(END VIDEO CLIP)

ROMANS: The White House says the president does not declare a national emergency in the latest State of the Union draft. Several Republican senators say they are deeply skeptical of the idea, mainly out of worry the Democrats then -- Democratic presidents could then use the same excuse to fund their priorities.

The president's State of the Union guest list also highlights some of his key themes. It includes family members of a couple murdered by an undocumented immigrant, survivors of the Tree of Life synagogue massacre, a prison reform advocate, a man who benefitted from tax cuts, and a kid named Trump.

Sixth-grader Joshua Trump, not related to the president, but the White House says he has been bullied at school because of his last name. He will get a front and center seat tonight.

SANCHEZ: He kind of looks like a Trump, doesn't he? He just needs the right tie.

ROMANS: He looks like a cool kid.

SANCHEZ: Almost immediately after the State of the Union, Stacey Abrams, a rising star in the Democratic Party, will deliver the response to the president's State of the Union address. Abrams fell short in the 2018 Georgia governor's race but she energized liberal voters in the south. She's going to be the first African American woman to give the Democratic response. As for how she's going to prepare, Abrams says she's going to hydrate first. That, of course, a nod to Sen. Marco Rubio who awkwardly took sips of water during his speech. We've all been there.

At least four House Democrats will not be attending tonight's State of the Union. Fourteen Democrats skipped the president's address last time around.

ROMANS: All right. For some perspective, let's bring in CNN presidential historian Tim Naftali. Good morning. So glad to have you hear this morning.

TIM NAFTALI, CNN PRESIDENTIAL HISTORIAN: My pleasure.

ROMANS: Look, the president is so good on the fly. He's so good when he's commanding just extemporaneous speaking. When he's sort of locked into the speech he can be more stiff.

What are you expecting from him tonight and how high are the stakes for the president at this point?

Well, Christine, you're referring to teleprompter Trump.

ROMANS: Yes.

SANCHEZ: Correct.

NAFTALI: Teleprompter Trump looks uncomfortable.

What am I -- well, if this were a normal presidency -- that's a big if, right -- this would be a moment for a pivot because it's an era of divided government. The American people said in November, we want compromise. That's what it means.

We hear from surrogates that this will be a different kind of speech. So, I'm anticipating some new, higher, better themes -- perhaps no so much of a Jeremiah. Not so much discussion of attacks along the southern border.

My question is what happens tomorrow with tweets tomorrow.

SANCHEZ: Right.

NAFTALI: The undermining of the theme, the attack of the speaker.

So, tonight, we may see a slight pivot, although this president doesn't tend to pivot. We may see some broader themes. But what really matters in this era is governing, and this administration is understaffed and the president is not that interested in meeting people, as we know from his now-leaked schedule.

So, is he actually going to govern? Is he going to implement whatever grand themes he talks about tonight? That's to be seen.

[05:35:01] SANCHEZ: He hasn't waited long in the past to jump on Twitter and tear that bipartisan tone apart. The dynamics in the room really fascinate me for two reasons.

First, of course, we have to talk about the guests that are going to be there. We may see a potential -- a former Trump resort employee -- an undocumented worker who was fired.

ROMANS: Not a guest of the Trump --

SANCHEZ: Right.

ROMANS: -- of the Trump administration.

SANCHEZ: We are also going to see families of victims hurt by undocumented workers, Joshua Trump.

Which guest stands out the most to you, Tim?

NAFTALI: Well, Boris, look, I think there are two -- there are two parts to announce.

The first part is it would be very healthy for our country just to have a national moment which is not too controversial. You know, these States of the Union are often boring. I mean, generally speaking, they're rarely -- that rarely involve soaring rhetoric.

Sometimes, presidents use them to set a big goal. LBJ in 1964, war on poverty. Bill Clinton talked about the era of big government is over in 1996.

So it's possible -- generally, these are just about governing. It would be nice if these guests reflect our nation and the challenges facing our nation.

So not one stands out. The very fact that we have guests stands out and it's a good thing. I'd like to have a nice national moment.

SANCHEZ: The other dynamic I really want to watch for is not only the president having Nancy Pelosi over his left shoulder, but also --

ROMANS: Literally, over his shoulder.

SANCHEZ: Right.

ROMANS: That's what I think is such a great optic.

SANCHEZ: The 2020 contenders that are in the room.

NAFTALI: Oh, well.

SANCHEZ: The Kamala Harris, Cory Booker, Elizabeth Warren -- they're going to be watched.

NAFTALI: Yes.

SANCHEZ: What are you expecting from them? Do you think we're going to see a Rep. Joe Wilson moment where one of them stands up and says liar --

ROMANS: You lie.

SANCHEZ: -- to the president?

NAFTALI: Well, right now -- right now, I'm really worried about 2019. I'll worry -- I'll worry about -- I -- we need a government that works.

ROMANS: Yes.

NAFTALI: So what I would like to see is some kind of effort at compromise because it's the only way we're going to get through the southern border issue. Saying wall, wall, wall, wall, wall publicly -- negotiating publicly will not lead to a compromise, and we need a compromise. So, what I'm hoping for is a 2019 solution.

The 2020 people, they should watch -- do whatever they have to do. But right now, we need a government that works.

ROMANS: Let's talk about the president's approval ratings because we put them together here for you -- sort of historical approval ratings before the third-year State of the Union address.

And what is interesting here -- look at Ronald Reagan in 1983. I mean, for so many people, they talk about Trump's approval rating at 40 percent which is -- I think that's up actually a little bit, but is historically quite low. Ronald Reagan turned that around and was able to win -- handily win reelection.

What's the message here for President Trump and what he needs to do before 2020?

NAFTALI: Well, teleprompter Trump and Ronald Reagan are very different people. Ronald Reagan was magnificent at giving speeches. Ronald Reagan understood. Actually, he was very good at pivoting.

One of the things that people don't fully remember about the Trump -- about the Reagan era is that Reagan raised taxes without ever --

ROMANS: Yes.

NAFTALI: -- having been held responsible for it. Reagan was very good at pivoting. He changed his policy toward the Soviet Union without people saying he was a flip-flopper.

He had that ability. He had the ability of bringing Americans together, even those who really disagreed with him. He had, in a sense, a -- over time, a soothing effect on the American people.

Donald Trump is divisive. Donald Trump's language has always been seeking to make his base happier and everybody else angrier. If he chooses to be Reaganesque -- I'm not sure it would be all that believable, but if he chooses to be Reaganesque, well, we might see his numbers go up.

If he started talking about things like infrastructure and actually did something about them, he might find Democrats supporting him.

ROMANS: Yes.

NAFTALI: But so far, he's proven incapable of being anything but a sectarian president.

SANCHEZ: Tim Naftali, thank you for choosing greatness and deciding you'd be with us this morning, braving a cold. Thank you, Tim.

ROMANS: Choosing --

NAFTALI: Thank you.

ROMANS: -- EARLY START braveness. Nice to see you, Tim -- thanks.

NAFTALI: Thank you.

ROMANS: President Trump's inaugural committee has been subpoenaed by federal prosecutors in New York. The move escalates a wide-ranging inquiry into how a record $107 million was spent and raised. A copy of the subpoena reviewed by CNN demands documents related to donors, vendors, and finances.

The investigation covers a long list of potential crimes, including conspiracy against the U.S., along with illegal contributions from foreign nations and contributions in the name of another person, also known as straw donors.

SANCHEZ: Yes, the "The Wall Street Journal" reported last year the probe is looking at whether some donors gave money in exchange for access.

A spokesman for the inaugural committee says the subpoena is being reviewed. Their intention is to cooperate.

It is worth noting much of the committee's fundraising was headed by this man, former senior Trump campaign official Rick Gates, who pleaded guilty to a variety of felonies. He's now, obviously, cooperating with special counsel Robert Mueller's office.

ROMANS: All right. The Super Bowl's commercial may have been funny but corn farmers are not laughing. And now, a major beer company is trying to make amends.

(COMMERCIAL BREAK)

[05:44:07] SANCHEZ: No more delays on positive train control. Railroad accident investigators say there should be no more extensions for railroad operators to install new train safety technology.

According to the NTSB, positive train control systems could have saved 303 lives and prevented some 6,800 injuries over the last 50 years.

Congress passed a law in 2008 requiring operators to install the radio and satellite-based technology by the end of the year in 2015. But the rail industry has repeatedly requested and received waivers for that deadline because of the expense and complications with the technology. Only four of 41 rail systems made the December 31st deadline.

ROMANS: The head of the NTSB also says lifesaving information may have been lost because of the recent government shutdown. Investigators are only now looking in 97 transportation incidents that happened during the shutdown. In many cases, wreckage has already been moved or altered and that affects the ability to learn potentially critical safety lessons.

[05:45:09] SANCHEZ: The U.S. and South Korea reaching a preliminary deal to keep nearly 30,000 American troops in South Korea. The move easing fears that President Trump could move to withdraw U.S. troops during his upcoming summit with North Korean leader Kim Jong Un.

Under the agreement, South Korea would pay a greater share -- nearly $1 billion a year. That's more than $200 million -- what they're paying now.

This is not a long-term fix. It's only a 1-year agreement with the option of a 1-year extension. The previous deal was for five years.

ROMANS: The U.S. is calling on other countries to repatriate and prosecute ISIS fighters detained in Syria as the U.S. prepares to withdraw from Syria.

Last week, CNN reported the number of foreign fighters held in Syria topped 800 for the first time. Many countries reluctant to take those fighters back. It can be difficult to prosecute suspected ISIS members based on evidence from the battlefield.

The State Department says despite liberating ISIS-held territory in Iraq and Syria, ISIS remains a significant terrorist threat. A new report from the Pentagon's inspector general says ISIS will likely retake territory and claim victory after the U.S. withdraws from Syria.

SANCHEZ: More European nations now throwing their support behind Juan Guaido, the leader -- the legitimate leader of Venezuela. The list now tops 20 in Europe alone, including Britain, France, Spain, and Germany.

Foreign ministers from 14 countries in North and South America, the so-called Lima Group, held an emergency meeting. They also urged the military to show loyalty to Guaido.

Several countries giving humanitarian aid, with big donations from Canada and Germany. But there's still questions about what is going to happen to that aid once it gets to Venezuela -- whether it will be distributed to those in need or if troops loyal to Nicolas Maduro will hoard it for themselves.

ROMANS: Let's get a check on "CNN Business" this Tuesday morning.

Bud Light's Super Bowl ad not sitting well with corn farmers.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Oh, brewers of Miller Lite, we received your corn syrup by mistake.

UNIDENTIFIED MALE: That's not our corn syrup. We received our shipment this morning.

UNIDENTIFIED MALE: You're joking.

UNIDENTIFIED MALE: Try the Coors Light castle. They also use corn syrup.

(END VIDEO CLIP)

ROMANS: Oh, yes. The corn syrup flap. During the big game Sunday, Bud Light released multiple commercials touting the fact that Bud Light is sweetened with rice rather than corn syrup.

Now, the ad was meant to be funny, but the National Corn Growers Association not laughing. It posted a tweet in response to the ad. "America's corn farmers are disappointed in you. Thanks, Miller Lite and Coors Lite for supporting our industry."

According to the corn farmers group, a representative for the beer giant e-mailed the association late Sunday asking for a meeting with farmers. Anheuser-Busch confirmed it is in contact with the corn growers.

Corn farmers have been taking a beating in the last year. The trade war with China put a 25 percent tariff on U.S. corn exports which has left many farmers across the country unable to sell their corn for what they say is a fair price.

And last month's government shutdown closed USDA offices that were in charge of processing farmers' relief payments that were meant to offset the lost revenue because of the tariffs.

Global markets -- stock markets mostly higher here right now. You can see where they are right now. European markets are all up here. Futures slightly higher ahead of the president's State of the Union address.

The Dow gained 175 points Monday. The S&P 500 up a little bit. The Nasdaq closed up 1.2 percent. It was really a tech-driven rally.

Big tech stocks, including Nvidia, Microsoft, and Apple all closing higher. Apple, by the way, a widely-held stock. You probably have it somewhere in your portfolio. It's now up four days in a row, kind of building a base really after that 39 percent crash last year.

Big earners in high-tax states are packing up and moving south to Florida. It's not the sunshine, not the beaches, it's the change to those SALT deductions in tax reform last year. This, from the "The Wall Street Journal". Public officials in high-tax states are growing alarmed at the trend.

Here is what New York Gov. Andrew Cuomo said yesterday.

(BEGIN VIDEO CLIP)

GOV. ANDREW CUOMO (D), NEW YORK: The top 10 percent, 74 percent of all the revenue. Tax the rich, tax the rich, tax the rich. We did. Now, God forbid, the rich leave.

(END VIDEO CLIP)

ROMANS: They're leaving. That 2017 tax law limits state and local tax deductions at just $10,000. That's driving big earners from high- tax New York and New Jersey to places like Miami.

Real estate tracker Zillow told the "Journal" that home prices in low- priced areas -- low-tax areas are rising faster than in places where the SALT deduction limits are felt the most.

Papa John's trying to turn itself around with new board members and a big check. Hedge fund Starboard Value is investing $200 million into the struggling pizza chain. Starboard Value CEO Jeffrey Smith named chairman of the board.

New direction is needed. Last year, its founder, John Schnatter, resigned as chairman of the board after news broke that he'd used a racial slur during a conference call.

SANCHEZ: Yes, it was a public relations mess and sales have not recovered. Revenue at North American stores open at least a year fell 10.5 percent last month. "Better ingredients, better pizza" may be a "better board, a better result."

[05:50:06] ROMANS: We shall see.

SANCHEZ: We'll be right back.

(COMMERCIAL BREAK)

SANCHEZ: RBG is back. Supreme Court Justice Ruth Bader Ginsburg spotted making her first public appearance since undergoing cancer surgery in December.

Ginsburg attended a performance of "Notorious RBG in Song" at the National Museum of Women in the Arts. Her daughter-in-law, soprano Patrice Michaels, released an album of songs celebrating Ginsburg's life.

The court has not said if she's going to attend the State of the Union tonight but it isn't expected considering she skipped both of President Trump's previous addresses to Congress.

[05:55:03] ROMANS: School teachers in Oakland, California have voted overwhelmingly to authorize a strike. According to their union, 95 percent are on board with a walkout.

The vote authorizes the Oakland Education Association to call a strike after February 15th. That's when a neutral factfinder is expected to release a report designed to bridge the impasse.

Pay is the main issue. The school district is proposing a five percent raise over three years. The union is asking for a 12 percent increase along with smaller class sizes and more student support.

SANCHEZ: Hawaii is considering a bill to ban cigarette sales. The measure is before the State House right now and if it passes it would raise the cigarette-buying age to 30 by next year, 40 the year after, with increases going all the way up to age 100 by 2024. The staggered rollout would give the state time to adjust to lost cigarette tax revenue -- about $100 million a year.

The age limits would not apply to e-cigarettes, cigars or chewing tobacco. Tourists, of course, could still bring cigarettes with them.

ROMANS: All right. Some alarming research shows obesity-related cancers are rising fast among younger Americans. The American Cancer Society found the trend among adults 24 to 49, which covers millennials and slightly older adults.

Six cancers associated with obesity started showing increases among younger adults that usually show up later in life. Overall, the risk is about double the rate baby boomers had at the same age.

On a global scale, the World Health Organization says obesity has reached epidemic proportions. It's estimated more than one billion adults are overweight.

SANCHEZ: Now, you may not know this guy, Austin Jones, but your kids probably do. He's a YouTube star and he's facing time in prison for pressuring underage fans to send him explicit videos. The 26-year- old, who pleaded guilty to child pornography, admits he attempted to persuade young girls to send him sexually explicit photos and videos on about 30 occasions.

Attorneys for Jones did not respond to a CNN request for comment.

ROMANS: A shocking revelation from actor Liam Neeson who says he once contemplated racist revenge and is expressing regret for it. Neeson tells the British newspaper, "The Independent" it happened years ago. He says he took to the streets with a heavy stick after learning that a loved one had been raped.

(BEGIN VIDEO CLIP)

LIAM NEESON, ACTOR: I asked, did she know who he was? No. What color were they? She said it was a black person.

I went up and down areas with a cosh, hoping I'd be approached by somebody. I'm ashamed to say that. And I did it for maybe a week, hoping some black bastard would come out of a pub and have a go at me about something, you know, so that I could kill him.

(END VIDEO CLIP)

SANCHEZ: Now, a surprising admission and kind of surprising the way he phrased it, too. Neeson says when he looks back now he's ashamed of his horrible behavior. The 66-year-old actor says growing up around violence in Northern Ireland taught him that revenge ultimately does not work.

So why is he bringing this up now? Neeson gave the interview to promote his new film "Cold Pursuit" in which he plays a father bent on revenge after the death of his son.

ROMANS: Man the duck boats. The parade honoring the Super Bowl champion New England Patriots will kick off at 11:00 a.m. this morning and roll through the streets of Boston. It's expected to be a beautiful day for a championship celebration.

Past parades have drawn up to a million spectators. And the Super Bowl MVP Julian Edelman says he wants to see two million fans at this year's victory parade.

The Patriots and their fans are celebrating the team's sixth Super Bowl win after the Pats beat the L.A. Rams 13 to three on Sunday.

SANCHEZ: Boo, boo.

ROMANS: I thought I was boring, sorry. I don't know what Berman thinks but --

SANCHEZ: Yes.

ROMANS: -- I thought it was boring.

SANCHEZ: The Super Bowl was lame, duck boats are kind of lame, the --

ROMANS: I know.

SANCHEZ: -- halftime show as lame. Let's try it again next year.

ROMANS: I know -- all right. Maybe the State of the Union will be more exciting.

Thanks for joining us. I'm Christine Romans.

SANCHEZ: And I'm Boris Sanchez in for Dave Briggs. "NEW DAY" starts right now.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: It's going to be a speech that's going to cover a lot of territory, but part of it's going to be unity.

UNIDENTIFIED MALE: We can reach agreement. The problem is the president keeps changing the goal post.

GRAHAM: This is the defining moment of his presidency. To every Republican, if you don't stand behind this president, we're not going to stand behind you. UNIDENTIFIED MALE: There are these continuing questions about where did all this money go. He may be mired in this for the rest of his first term.

UNIDENTIFIED FEMALE: There is information out there that may be likened to a crime.

UNIDENTIFIED MALE: If they're credible, let the investigation go forward and let's see what it shows.

(END VIDEO CLIP)

ANNOUNCER: This is NEW DAY with Alisyn Camerota and John Berman.

JOHN BERMAN, CNN ANCHOR: Welcome to our viewers in the United States and all around the world. This is NEW DAY. It's Tuesday, February fifth, 6:00 here in New York.

Alisyn is off. Poppy Harlow joins me. Great to see you this morning.

POPPY HARLOW, CNN ANCHOR: Good to be here, my friend.

BERMAN: Big day -- a huge day for the president with some huge questions looming.

END