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Ethiopia: Crew Followed Procedures But Could Not Control Jet; Felicity Huffman And Lori Loughlin In Court For College Scam; CNN Reality Check: Cutting Through The Brexit Chaos And Why You Should Care; New York Times Investigates Rupert Murdoch's Media Empire And Fox News. Aired 7:30-8a ET

Aired April 04, 2019 - 07:30   ET

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


(COMMERCIAL BREAK)

[07:31:10] ALISYN CAMEROTA, CNN ANCHOR: Breaking news. Ethiopian investigators just announced their preliminary findings in that deadly crash of the Boeing 737 MAX 8 jet that killed 157 people last month.

(BEGIN VIDEO CLIP)

DAGMAWIT MOGES, ETHIOPIAN MINISTER OF TRANSPORT: The crew performed all the procedures, repeatedly, provided by the manufacturer, but was not able to control the aircraft.

(END VIDEO CLIP)

CAMEROTA: Authorities there outlining the frantic efforts by pilots to regain control of that plane but ultimately, they were not able to.

Joining us now is Andrew Tangel. He's an aviation report at "The Wall Street Journal" who has done a lot of reporting on this. Andrew, thank you so much for being here.

Up until this morning and this press conference, there were questions about whether or not the pilots -- maybe they weren't trained in this new technology. Maybe they didn't know what Boeing had recommended. But it turns out, according at least to Ethiopian investigators, that they followed all of the procedures that Boeing had laid out and they still couldn't keep the plane from going into a nose dive.

Is that what you got out of the press conference this morning?

ANDREW TANGEL, AVIATION REPORT, THE WALL STREET JOURNAL: It's -- that's the assertion and it's going to be interesting to see what the report actually says about the specific steps that Boeing and the FAA had laid out after the Lion Air crash and to see how specifically, the crew reacted as they took that primary emergency step of cutting off the power to the flight control system called MCAS -- or MCAS. And we're going to be looking for those details and to see what steps and how they were followed.

CAMEROTA: Yes. I mean, the investigators did not release the details. I mean, correct me if I'm wrong but they haven't released what they found on the data flight recorder or the voice recorder and obviously, that would be important information.

And so, we're taking the Ethiopian investigators' word for it. But given that, what should Boeing do today?

TANGEL: Well, Boeing is waiting for the reports and will comment further later. So presumably, we'll know a bit more from their perspective.

But separate from this particular crash investigation, Boeing has been working on a software fix to this flight control system. They ultimately have to get the regulators around the world, including the FAA, to sign off on the revised flight control system for the 737 MAX so that regulators will allow them to -- well, the airline operators to get the plane back in the air.

CAMEROTA: I think what's really nerve-racking is to hear the investigators say that these pilots turned off that automatic flight control system. So the one that they believe was malfunctioning -- that was sending the plane into a nose dive -- these pilots knew from their training and I guess from the flight manual to turn off that system, and they still couldn't get the plane to climb. They still couldn't control it.

And so, it's just -- I mean, it's just very worrisome, obviously, to the passengers -- the flying public -- that pilots even who knew what to do weren't able to prevent this tragedy.

TANGEL: Right. This is a big question hanging over this second tragedy involving the 737 MAX.

[07:35:00] After the first tragedy, Boeing and the FAA alerted airlines and pilots around the world that if they encounter a similar problem -- a misfiring of this flight control system -- that there is an established emergency procedure to follow to disable the system and wrest control of the airplane, fly it manually, and land it safely. And, right -- as you point out, that's the big question.

In this case, the crew, according to the Ethiopian investigators and I believe also the airline today, followed that emergency procedure. Now, there are particular steps in that procedure. It's going to be interesting to see how the steps were followed --

CAMEROTA: Yes.

TANGEL: -- and what the crew actually did.

But, yes, it's a big question and that ultimately raises the question about what the fix is going to be from Boeing's perspective and how the regulators around the world are going to let the plane get back in the air --

CAMEROTA: Yes.

TANGEL: -- given what we now know or are finding out about the Ethiopian crash.

CAMEROTA: Absolutely. We'll see what Boeing does today.

Andrew Tangel, thank you very much for sharing your reporting with us -- John.

JOHN BERMAN, CNN ANCHOR: All right, it's time for "CNN Business Now."

The Boeing 737 MAX safety crisis could hurt more than the company's bottom line. It could cause a dent in the entire U.S. economy.

Our chief business correspondent Christine Romans joins us now with more on that -- Romans.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT, ANCHOR, "EARLY START": Hi there, guys.

Yes, two years ago, Boeing's CEO boasted about how quickly it was able to bring the 737 MAX to market. Dennis Muilenburg praised the Federal Aviation Administration's new streamline certification process, attributing it to the pro-business philosophy of the new Trump administration.

But after two deadly crashes, Boeing is facing a serious crisis here. The 737 has been the company's best-selling jet for decades and Boeing is an important company that contributes to GDP. It sells more than half of its products internationally. That boosts trade.

Its stock carries some serious weight on the Dow. Since the Ethiopian air crash, Boeing stock is down close to nine percent, shaving about $20 billion from its market cap.

Now, JPMorgan's chief economist says if Boeing were forced to halt production it would cause a dent to the national GDP. Now, for now, issues with the aircraft probably won't affect growth numbers -- the economy overall -- because production does continue.

Boeing will report first-quarter deliveries and orders next week. Now, so far, only one airline, Indonesia's Garuda, has publicly canceled an order for the 737 MAX.

Most analysts don't believe many airlines will cancel orders but Boeing faces a huge bill to reimburse those airlines for the grounded planes. Analysts estimate that the cost is already $2 billion and growing each day planes are not flying.

And as it works to reestablish trust, the CEO, Muilenburg, joined a test flight of the 737 MAX yesterday. Testing on the plane's software update continues. Boeing plans to submit it to the FAA, guys, in coming weeks -- Alisyn and John.

CAMEROTA: All right, Christine. Thank you very much for that update.

OK, two Hollywood actresses facing a judge in the college admissions scandal. Will they face prison time? That's next.

(COMMERCIAL BREAK) [07:42:39] BERMAN: New developments this morning in the college admissions scandal. Actresses Felicity Huffman and Lori Loughlin -- they appeared in federal court along with 10 other parents. Prosecutors are seeking jail time for every one of the defendants.

Our Brynn Gingras is live outside the Joe Moakley Courthouse in Boston with the very latest -- Brynn.

BRYNN GINGRAS, CNN NATIONAL CORRESPONDENT: Yes, John, six months to 21 months is what the government is planning to ask, according to a law enforcement source. Of course, some parents may strike a deal with the prosecution. We actually did see some parents in court yesterday, looking in the court paperwork, and we see that some people are already in conversations with the government though.

As far as those two actresses, when they arrived in court it was very procedural. They went before a judge. The judge said, "Do you understand these charges?" Both women only replied, "Yes, your honor."

The optics, though, a little different. Felicity Huffman arrived three hours before her scheduled court time, hand-in-hand with who we believe was a family member.

And, Lori Loughlin was very different. She arrived with a full security team. She waved to fans. She went in there and shook the hand of the prosecution before she went before a judge.

So, different with those two women.

An update on this case, though. We're hearing from a source that the government could ask for additional charges. We've already seen that with two parents who saw an additional money laundering charge to their case.

And soon, we could see more arrests in this case, possibly even of a student who knowingly participated in this scam. That's according to a source.

Alisyn, back to you.

CAMEROTA: Oh my gosh, it gets more complicated. Brynn, thank you very much.

GINGRAS: Yes.

CAMEROTA: OK, another day, another pivotal vote on Brexit. Why does this seem so impossible to solve and how did we get here?

The one man on earth who can solve Brexit, John Avlon, and he's here with our reality check -- John.

BERMAN: I've got to think that we're all smiling because it makes our dysfunction seem that much less.

CAMEROTA: Yes. JOHN AVLON, CNN SENIOR POLITICAL ANALYST: Yes, we're not alone, people. That doesn't mean it's a good thing.

All right, so here -- let's set the stage. One of the world's longest-lasting democracies thrown into chaos because right-wing populists hijacked a major political party and narrowly won a nationwide vote helped by Russian interference amid accusations that the campaign lied repeatedly. Now, the divided country just can't seem to find common ground.

I'm talking, of course, about Brexit, the more than 2-year parade of Parliamentary face-plants that chaos has been coming at a daily clip lately, leaving lots of Americans pretty confused. So here is a simple WTF guide to Brexit.

[07:45:02] The trouble began in 2016 when the center-right Prime Minister David Cameron finally bowed to pressure from a far-right party known as Ukip and allowed a referendum on leaving the European Union.

Cameron, who thought the far-right wouldn't win, decided to make the split with Europe subject to a simple majority. Big mistake.

The leader of the Leave coalition was a guy by the name of Nigel Farage, who talked a lot about British sovereignty but had a strange soft spot for Putin and a serious dislike of anti-Russian sanctions.

The Leave rhetoric might sound a little bit familiar as well. He was talking about taking their country back from out-of-touch elites and arrogant bureaucrats, and railing against Muslim immigrants.

But some of their arguments -- well, they fell apart upon scrutiny. For example, one argument said the E.U. received 350 million pounds a week and that would go instead to the National Health Service after Brexit. It turns out that wasn't exactly true.

They said a free trade deal after Brexit would be, quote, "one of the easiest in human history." Well, that's right up there with "trade wars are good and easy to win."

Meanwhile, in the final weeks of the campaign, there was a pro-Brexit push on Russia's English language propaganda outfits, R.T. and Sputnik. And, CNN reported that Russian trolls pumped up Brexit on social media the day of the vote.

On June 23rd, 2016 the Brexitors narrowly one, 52-48, with England and Wales voting to leave, while Scotland and Northern Ireland voted to stay. The vote was also split along lines of urban and rural and young versus old.

Cameron resigned and his successor, Prime Minister Theresa May, tried to make the best of a bad situation. In January, after months of negotiations, May's 585-page divorce deal was rejected by a historic margin in Parliament. More than a dozen votes on alternative proposals have fared (ph) as well. Now, May even tried to trade on her unpopularity by offering to quit if a Brexit deal was passed, but nothing's worked. Meanwhile, the British economy is taking it on the chin.

Now, this past Tuesday, May announced that she would try to work with far-left opposition leader Jeremy Corbyn, who is one of the few politicians less popular than she is.

So, what's next? Well, late yesterday, Parliament effectively ruled out a no-deal Brexit by one vote, forcing the government to seek an extension from the E.U. if it can't pass a deal by the new deadline next Friday.

Now, there's also the distant option of a redo referendum pushed by Tony Blair and others, arguing the country might vote differently knowing what they know now.

About the only thing that's clear is that Brexit's a mess. But why should it matter to you? Well, it's a reminder that even the longest- lasting democracies can be crippled by negative partisanship and nativism in an interconnected world when people and politicians are more defined by what they're against rather than what they're for.

And that's your reality check.

BERMAN: So the lesson here is it can always get worse. That's my takeaway. It can always get worse. And (b), no matter how unpopular you think you are, there is always someone more unpopular right next to you?

AVLON: Yes. I think those are the two good takeaways. And if that -- if those people are leading the parties you've got a real problem in a democracy.

BERMAN: And lastly, where's Meghan Markle on this?

CAMEROTA: Thank you.

AVLON: Presumably, she'll solve it and step in.

BERMAN: I would think. That's the --

CAMEROTA: That's a good point --

BERMAN: All right.

CAMEROTA: -- if anybody can.

John, thank you very much.

BERMAN: All right. Parts of the south getting hammered by severe thunderstorms and hail while western states are bracing for some pretty wet weather.

CNN meteorologist Jennifer Gray has the forecast -- Jennifer. John, that's right. We do have some pretty strong storms in the south. It's really going to slow down flights today. You can see all of the rain pushing through the Mississippi River Valley and look at that lightning. It really has just lit up over the last hour or so.

This weather is brought to you by the Shark Self-Cleaning Brushroll. The vacuum that de-cleans now cleans itself.

And we do have a risk of severe storms today that could include damaging winds, large hail, even the possibility of isolated tornados. This is for basically the entire state of Louisiana and then points just outside East Texas included in that, as well as portions of Mississippi.

Let's time this out. You can see those showers and storms rolling through all day today, even as we go through the overnight tonight into tomorrow. We could see some very strong storms push through the Panhandle and then make its way to the East. We could even get some rain across the Northeast and even some snow across portions of New England.

But by this weekend, guys, temperatures are looking much warmer all around. A much better forecast feeling a little more like spring.

CAMEROTA: OK, Jennifer. Thank you very much.

So, many people associate the Murdoch family most closely with Fox News. But now, thanks to a huge "New York Times Magazine" report, we see how much farther the Murdoch's right-wing reach extends. It's through the Trump White House and well beyond.

(COMMERCIAL BREAK)

[07:53:30] CAMEROTA: "The New York Times Magazine" has a blockbuster of a story on Rupert Murdoch's media empire. It outlines how the Murdoch family, who founded Fox News and Sky News, has enormous political reach across the globe.

Here's a video that accompanied the article.

(BEGIN VIDEO CLIP)

SEAN HANNITY, HOST, FOX NEWS "THE SEAN HANNITY SHOW": Promises made, promises kept.

JIM RUTENBERG, MEDIA COLUMNIST, THE NEW YORK TIMES: This is the night Fox crossed the line between where the network ends and President Trump begins, and I'm going to tell you how we got there.

HANNITY: America, you have the power. Tomorrow you can shock the world again.

(END VIDEO CLIP)

CAMEROTA: Joining us now is the "Time's" media columnist, Jim Rutenberg. He spent six months investigating this piece. He traveled to three continents and interviewed 150 people. I've been wondering where you've been.

RUTENBERG: Yes, we've -- well, there are two of us. My partner Jon Mahler and I have been working this really hard for several months. Yes, we put on a lot of air miles.

CAMEROTA: That was a very ominous sort of "Manchurian Candidate"-like clip that we just played there. And I think that what people in the U.S. mostly tie to Murdoch is Fox News, and you just showed Sean Hannity there.

But what your article shows is they have tentacles everywhere and are more powerful than many people know. They have elected prime ministers in other countries. They are vast.

RUTENBERG: What it really is, it's a global machine, right? And it's almost, in these other countries, taken as a given that the Murdoch press is one of the most powerful forces in their country. In some cases, almost like another political party.

[07:55:01] CAMEROTA: And here in this country, let's just dive into that.

One of the interesting things -- it's been reported elsewhere but you reveal in more detail that Rupert Murdoch was not a fan of Donald Trump's originally. In fact, here's what you write.

"Murdoch recognized Trump's appeal as a tabloid character and ratings driver, but he did not seem to see him as a serious person, let alone a credible candidate for president. 'He's a (expletive) idiot,' Murdoch would say when asked about Trump."

So how is it possible that they now have such a symbiotic relationship between Fox News and the Trump White House?

RUTENBERG: Well, first of all, one thing to understand about Rupert Murdoch is he does go where his audience is. Now, his audience for most of his products is normally kind of center-right to much farther right, these days especially.

But, Trump did not -- was not initially a Murdoch kind of guy. Rupert Murdoch is on record as being very much, for instance, for immigration reform. He's been on -- he's for free trade.

CAMEROTA: Environmentally green.

RUTENBERG: For a moment. That was a little shorter-lived.

CAMEROTA: Yes.

RUTENBERG: But -- so -- and we forget this now but there was a point where Fox News and Trump were at war, right, with Megyn Kelly challenging him in a debate. There was months of back-and-forth. Some of their coverage would drive Trump crazy.

But as he comes into -- toward -- he starts getting close to getting the nomination, you see things start to shift. CAMEROTA: But I guess the question is do the Murdochs have positions based on some sort of moral code or is it all just about winning and ratings?

RUTENBERG: I don't -- I think to some degree, yes, it's about giving their audience what the audience wants. But if you look at the sum total of the kind of -- the direction of the Murdoch press across the world, it is in inextricably kind of moving to the right.

Now, he's a pragmatist -- Rupert is -- so he will kind of get behind a more liberal government here or there. But it's really mostly going in this other direction.

CAMEROTA: But it's also very interesting to see how he deals with the outsized influence that President Trump now has over Fox News, along with the president's friend and ally, Sean Hannity.

When a Fox contributor attempts to say something that might be seen as unflattering about President Trump -- and it happened with Stephen Hayes here -- you write about what happens.

"After the Fox contributor and Weekly Standard editor Steven Hays called Trump, quote 'a clown,' Trump faxed Fox News anchor Bret Baier a copy of his resume with a note scrawled across it in black marker: 'Tell Hayes no clown could have done all this!'"

This is President Trump influencing their editorial.

RUTENBERG: Well, that was at the point during the campaign when they were still at war and it actually -- apparently happened more than once, when he was called a clown by Charles Krauthammer as well. We have some reporting on that. So that is still during that period.

But he is known to -- he's gone on their air and complained about some of their people. So, it's not always in lockstep but especially in prime time and through like a Sean Hannity. They are very, very close and we see it play out all the time as we did before the election and now since.

CAMEROTA: And yet, not all of the Murdochs are comfortable with this. I mean, you talk about the rift that has happened between the sons. One of them being more liberal -- is married to a more liberal woman -- who is very uncomfortable with the direction of Fox News and the Trump presidency.

And so how does that play out?

RUTENBERG: Well, this became a big point of conflict within the family.

James Murdoch is more of a -- I think he'd call himself a centrist -- and he saw -- especially, Roger Ailes, if you'll remember, has to leave the network amid a sexual harassment scandal. So, James Murdoch sees this as an opportunity to maybe bring the network kind of a -- rein in a little bit. He's not -- he's still expected to be a conservative network but he thinks maybe we'll give it more of a kind of traditional --

CAMEROTA: But he lost.

RUTENBERG: He loses. Lachlan Murdoch comes in and now is the heir apparent to his father, and Lachlan is much more conservative and really doesn't see a problem. Why get in the way of something that's making a lot of money and winning in the ratings?

CAMEROTA: Look, it's an exhaustive and fascinating piece. Everybody should read just how vast their influence is well beyond Fox News.

Jim Rutenberg, thank you so much for sharing it with.

RUTENBERG: Thank you.

CAMEROTA: Great to see you -- John.

BERMAN: It really is fascinating.

All right, there is a key split now being reported between Robert Mueller's team and the Attorney General William Barr.

"NEW DAY" continues right now.

(BEGIN VIDEO CLIP)

MARK MAZZETTI, WASHINGTON INVESTIGATIVE CORRESPONDENT, THE NEW YORK TIMES: Barr put out this bare-bones letter and what we've heard is there is a lot more that is damning for Trump.

RUDY GIULIANI, ATTORNEY FOR PRESIDENT DONALD TRUMP: They can put out every part of it. It's about as big an exoneration as I've ever seen.

UNIDENTIFIED MALE: There's going to be a push for detail. Until that's out there, there'll be no satisfaction.

UNIDENTIFIED FEMALE: The House Ways and Means Chairman sent a letter requesting Trump's tax returns.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're under audit. I would not be inclined to do that.

UNIDENTIFIED MALE: He faces the prospect of being shown to not be worth what he says he's worth. He's in big trouble here.

(END VIDEO CLIP)

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

CAMEROTA: Good morning, everyone. Welcome to your NEW DAY. It is Thursday, April fourth, 8:00 now in the East.

END