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President Trump Steps In North Korea, Faces Long Odds Of Deal; Protest Reignite In Hong Kong; Grisham Bruised In All Out Brawl With North Koreans; Talks Resume In U.S./China Trade War; Kevin Durant To Sign With Nets; Facebook Launches Civil Rights Task Force; Alabama Woman Indicted In Death Of Her Unborn Child; Illustrator Loses Job Over Trump Cartoon; Father And Daughter To Be Laid To Rest Today; Sandwich Shop Workers Try To Feed Hungry Migrants; Taylor Swift's Worst Case Scenario; Study, Secondhand Effects Of Drinking Causes Harm; Deputy Dragged Nearly 100 Yards After Traffic Stop; Yankees Sweep Red Sox In London Series; June Marks A Record Month For Stocks; U.S. Jobs Report Due Friday; Retailers Struggling To Compete With Amazon. Aired 4:30-5a ET

Aired July 1, 2019 - 04:30   ET



DAVE BRIGGS, CNN HOST: NBA free agency tips off with a shocker heard round the basketball world. Kevin Durant announcing plans to sign with the Brooklyn Nets. A deal for four years, $164 million. Durant played the last three seasons with the Golden State Warriors winning two titles. He is expected to miss most or all of next season after rupturing his Achilles in the NBA finals.

Durant will join free agents Kyrie Irving, DeAndre Jordan who are also headed to Brooklyn. K.D. and Kyrie reportedly took less money to sign so the Nets could sign DeAndre Jordan. Meantime, the Knicks sought to assure their very disappointed fans in a statement saying they continue to be upbeat and confident in their plans to rebuild. "Early Start" continues right now.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Stepping across that line was a great honor. A lot of progress has been made.


MICHELLE KOSINSKI, SENIOR DIPLOMATIC CORRESPONDENT: A lot of progress, as the president making history by crossing into North Korea and saying he is restarting nuclear talks, but a deal to curb Pyongyang's nuclear program still faces long odds.

BRIGGS: Breaking news right now. Protesters in Hong Kong smash the front glass of the legislative building. Thousands in the streets to mark 22 years since Hong Kong's handover from Britain to China. Welcome back to "Early start." I'm Dave Briggs on a breaking news Monday around the world. KOSINSKI: A lot going on this Monday to start us off. And I'm

Michelle Kosinski in for Christine Romans. It's 32 minutes past the hour here in New York. And while you were enjoying a summer weekend, there was history being made at the DMZ. The president meeting North Korean dictator Kim Jong-un and becoming the first sitting U.S. president to cross into North Korean territory. The two leaders met for nearly an hour agreeing to restart those nuclear talks. Again, it was part of a weekend full of activity that could reshape U.S. relationships in Asia.


TRUMP: This is my honor. I didn't really expect it. We were in Japan for the G20. We came over and I said, hey, I'm over here. I want to call Chairman Kim and we got to meet and stepping across that line was a great honor. A lot of progress has been made. A lot of friendships have been made and this has been a particular great friendship so I just want to thank you.


BRIGGS: A great friendship with the murderous dictator. No doubt, President Trump loves this historic optics. Overnight North Korean state media describing the Trump/Kim DMZ summit as an amazing event. But will it amount to anything beyond a photo-op.

Let's bring in Paula Hancocks live near the DMZ. Paula, it would appear if "The New York Times" reporting is accurate, United States has prepared to significantly lower the bar. Good morning.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Dave. Well, what we're hearing from "The New York Times" is that Trump administration officials are potentially now looking for a nuclear freeze as opposed to what they have asked for before, which is complete denuclearization of North Korea and then they would consider easing some of the sanctions on them.

That is would be more of a step-by-step process. It would potentially tacitly accepts North Korea as nuclear power. Now, this is what we have seen from previous U.S. administrations. The fact that they have gone for freezes of nuclear missile tests in the past, there has been varying degrees of success, but all of those deals have eventually fallen down.

Now we also understand from "The New York Times" article that the U.S. administration might be considering the deal that was discussed in Hanoi back in February. This was -- that North Korea would give up its main nuclear producing facility. This is the Yongbyon Nuclear Research Center and that would in turn lead to some sanctions relief.

Now, this was rejected by Washington back in Hanoi saying that they wanted some of these undisclosed sights that North Korea hasn't admitted to be part of the deal as well.

[04:35:00] But very interestingly we did see that when President Trump was standing next to the South Korean President Moon Jae-in at the Blue House, the presidential office, they gave a press conference, President Moon suggested this Yongbyon deal, once again and the U.S. president did not object to that. But let's hear what he was saying as well at the DMZ.


TRUMP: We want to get it right. We don't want to -- we're not looking for speed, we're looking to get it right. And in the meantime, there's been no nuclear tests, there's been no ballistic missiles. There's been a lot of goodwill and there continues to be. Maybe if anything, better. And it probably after today, better than it was even before.


HANCOCKS: Now it is clear there is no need for speed when it comes to Kim Jong-un. He is not limited to a certain term as leader of North Korea. His term is, if he has anything to do with it, for life, of course for President Trump it is a very different matter, Dave.

BRIGGS: OK, 5:35 there p.m. near the DMZ. Paula, thank you.

KOSINSKI: Newly minted White House press secretary Stephanie Grisham getting some unexpected come back experience in the chaos that surrounded the impromptu Trump/Kim meeting. Grisham got into a scuffle with North Korean officials outside a meeting room where the two leaders were talking privately. A source at the scene described it as an all-out brawl and said Grisham was a bit bruised. Several U.S. journalists did give her credit for assuring their press freedoms.

BRIGGS: Temporary truce in the U.S./China trade war. During the G20, President Trump and Chinese President Xi Jinping agreed to table new tariffs and continue negotiations. The president telling Fox News he is optimistic about a deal with China.


TUCKER CARLSON, FOX HOST: You just recently, hours ago, met with the Chinese President Xi Jinping.

TRUMP: I did.

CARLSON: Are you closer, do you think, after that meeting to a trade deal?

TRUMP: I think so. We had a very good meeting, he wants to make a deal. I want to make a deal, very big deal. Probably, I guess you'd say the largest deal ever made of any kind, not only trade. We got along very well. We understand each other.


BRIGGS: White House chief economic advisor Larry Kudlow said there's no guarantee that a deal will happen.


LARRY KUDLOW, WHITE HOUSE ECONOMIC ADVISER: As the president said, continuing the talks which had been interrupted for a while, is a very big deal. No promises. There's no deal made. There's no timetable, I want to emphasize that.


BRIGGS: Investors like the news of a temporary truce. Wall Street futures are positive ahead of the opening bell. Something to remember here, existing tariffs on Chinese goods are still in place and will continue to hit businesses in the United States.

Futures are also higher after Trump said he would lift some restrictions on Chinese tech giant Huawei ending a ban on American companies from using Huawei the telecom gear. Trump said Huawei will be save for the end of trade talks between Washington and Beijing.

KOSINSKI: A tense standoff overnight in Hong Kong with pro-democracy demonstrators taking a violent turn. Some of them shattering the glass on the legislative building. We are live there next.


KOSINSKI: Breaking overnight from Hong Kong. Protesters flooding the streets and clashing with police as Hong Kong marks 22 years since it was formally returned to China. Protesters trying to storm the legislative building smashing windows there. That is where our CNN's Nic Robertson is live right outside that building in Hong Kong. Nic, those were some disturbing pictures. Has it calmed down at all since you've been out there?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It's calmed down at this location, but it's still very tense. The police inside, and let's just look through the windows. This, again, was the front line of the confrontation. Just a half an hour to an hour ago, protesters were smashing through this glass here. We know from the police this is as far as they'll let us go. We can't go into the building. This is the front line looking through the glass.

But what it seems to have happened, this intense confrontation involving several hundreds of protesters using trollies full of rocks and metal bars to smash through this thick glass here at the government buildings was, it seems, symbolic, symbolic that they wanted to send a message to the government that they want the extradition bill, this bill that they fear that eats away at their democracy here that would send certain fugitives to mainland China for trial.

They see this as the tip of the iceberg that would eat away at the Democratic values and life that they enjoy here, these young people enjoy here in Hong Kong that their parents were enjoyed, that their grandparents have enjoyed and ultimately they fear that China may take away from them. So this has been very symbolic.

But the interesting thing to watch, this intense two hours of conflict here where every time the crowd charged forward and begin to tear through these glass with metal bars, the police came forward with their pepper spray. The pepper spray still dripping off the bottom of the glass here. But the crowd has now moved on elsewhere. We can hear them chanting and shouting. But overall there has been a much bigger protest. Hundreds of thousands of people marching through the streets of Hong Kong remembering the day 22 years ago today now, 1997, when the British government handed over Hong Kong to the Hong Kong -- back to the people here in Hong Kong.

That is the day that is been marked today. It was marked by a flag raising ceremony in the morning by this peaceful demonstrations through the day, but it's what's happened here. This violent confrontation. The images that are going to endure and that people are going to remember.

KOSINSKI: Interesting to see the persistence of the people there. Thanks so much Nic

[04:45:00] BRIGGS: All right. Facebook says it will do more to combat election meddling in 2020. The social media giant has created what it calls a civil rights task force to help protect the presidential campaign and the census from interference. Civil rights groups have been pressuring the company to do more to fight voter intimidation and suppression. A top civil rights expert who is auditing the company, Facebook has improved, how it I incorporates civil rights into its products, but she isn't sure those improvements will last.

KOSINSKI: More to a pregnant woman who was shot and then indicted in her unborn baby's death plan to file a motion this morning to get manslaughter charges against her dismissed. In Alabama grand jury indicted 27 year-old Marshe Jones (ph), base on her (inaudible) and starting a fight with another woman that led to the gun fire. Jones was five months pregnant at the time. The district attorney said they're currently evaluating the case to determine whether to prosecute it as manslaughter, reduce it to a lesser charge or not pursue it at all.

BRIGGS: Wow. Ahead here, a Florida man facing serious charges after taking off with an officer clinging to the side of his car.


BRIGGS: Funeral services will be held today for the father and daughter who drowned crossing the Rio Grande and whose image seems seared in our collective consciousness. The bodies of Oscar Martinez and Angie Valeria arrived in El Salvador Sunday. Martinez and his daughter were seen face down in the murky waters near Mexico. Advocates say the picture reflects the harsh realities of the migration crisis. The risk is being taken to reach the Southern U.S. Border.

KOSINSKI: A Canadian cartoonist has lost his job over an illustration of President Trump playing golf over the bodies of the two drowned migrants. In Michael de Adder cartoon Trump asks, do you mind if I play through? Two days after he tweeted the image he utters that he had been let go by a publishing company in New Brunswick, Canada. He did not respond to a request for further comment from CNN Business.

BRIGGS: For the growing number of asylum seekers waiting to make their case, workers at a sandwich shop near the border are trying to help out by providing meals for hungry families. CNN's Michael Holmes has that story.


MICHAEL HOLMES, CNN CORRESPONDENT: Six a.m. in the Mexican border town of Matamoros, and Jasmine Ramirez Vazquez and her co-workers begin their day in their sandwich shop. Not working for profit but to help feed the dozens of migrants waiting here. Sometimes for months to see U.S. immigration authorities and pray their asylum claims are accepted.

Now the operation here is funded by private donors in the U.S., but the people who work here, they do it for free. They even let migrants use the little shower in the back. They say they're paying it forward, doing it for god.

UNIDENTIFIED FEMALE (through translator): To see people desperate, hungry, if I had more to give, I would.

HOLMES: Also working here, Brian, a former Nicaraguan policeman who says he fled after threats to his life, now sleeping on a park bench by night, volunteering to help feed fellow migrants by day as he waits to plead his case with U.S. immigration.

BRYAN, NICARAGUAN MIGRANT (through translator): My mother taught me values and principles. You must always help those in need, so I help whoever I can, and they help me. It's a miracle I've made it this far.

HOLMES: Around 8 a.m., Yasmine and Brian walk a familiar route to the plaza where other migrants wait at the border crossing. Its close and maybe five minutes away and hungry families already know Yasmine is coming.

UNIDENTIFIED FEMALE (through translator): They're happy. They're happy when they see me coming with the cart. They get in line. Kids first, then women, then men.

UNIDENTIFIED MALE: For my part, I appreciate what they're doing. There's somebody out there that (inaudible).

UNIDENTIFIED FEMALE (through translator): There are so many people that don't have money here. Waiting for two to three months and they don't have money to eat so this is a big help.

HOLMES: Elsewhere in Mexico, the government crackdown continues in the wake of the Trump administration tariffs threat. More than 450 Central Americans detained in Vera Cruz, mostly Honduran and Guatemalan. The operation targeted hotels and lodging houses and more operations are to come. Also, nearly 180 migrants found in a trailer on Thursday. Back in Matamoros, the sandwiches are gone for another day. The migrants grateful for locals who care. UNIDENTIFIED FEMALE (through translator): It breaks my heart seeing

them suffering. I wouldn't want my children, my family to go through this. It's really sad.

HOLMES: And so tomorrow, Yasmine and her team will be back feeding those who wait for their number to be called. Michael Holmes, CNN, Matamoros, Mexico.


KOSINSKI: Nearly 20 percent of adults in the U.S. have experienced some form of harm as a result of someone else's behavior while drinking. New research in the journal of studies on alcohol and drugs finds in 2015, an estimated 53 million people suffered harm ranging from property damage to physical injury. Researcher say, since the number is limited to the span of a year, the number is probably a lot higher. Data found the most prevalent type of harm was harassment. Overall, women were more likely to report harm by a spouse, partner or family member. And men were more likely to report harm because of a stranger's drinking.

[04:55:06] BRIGGS: Taylor Swift will not calm down over what she calls her worst case scenario. Swift venting on Tumblr after learning that her music catalogue was sold to a company owned by music manager Scooter Braun, who she accuses of incessant manipulative buoying for years. The $300 million deal prevents Swift from owning the first six albums in her catalog. Swift say she has now signed to a label that believes she would own what she creates and she warns new artists to, quote, better protect themselves in negotiations.

KOSINSKI: She had quite a rant there.

BRIGGS: She did.

KOSINSKI: A Florida man is facing attempted murder charges after dragging a sheriff's Deputy nearly 100 yards.


UNIDENTIFIED MALE: Put your hands up. Put it in park. Sir --


KOSINSKI: That is the body camera being knocked off the Deputy before he was dragged and then thrown from the car. He eventually rolled into the median of Interstate Four. Officials say the Deputy pulled Rocky Rudolph over because of his tinted windows, but then smelled marijuana. Things escalated quickly after that. The Deputy managed to shoot the suspect in the leg. The Deputy is expected to be OK. That is a rough --


KOSINSKI: -- episode there.

BRIGGS: Major League Baseball making a big splash in its debut across the pond this weekend. The Yankees sweeping the Red Sox in a two-game series in London. Crowds of nearly 60,000 and boy do the fans get their money's worth. The Yanks and Sox combined for 55-0 runs in two games on 65 hits. Again, that is in two games, folks. Wow. The fence is significantly shorter there.

KOSINSKI: You didn't even mention that the royals were there. Prince Harry and Meghan were there.

BRIGGS: That is a terrific point.

KOSINSKI: Major element in that sport story.

BRIGGS: Royals in the house.

All right. Let's get a check on CNN Business this morning. Taking a look at markets around the world. Asia stocks rallied as the U.S. and China agreed to resume talks hopefully ending a damaging trade war. The good mood extending to Wall Street as well. Wall Street futures are higher. June was a record month for investors. The DOW recorded its best month of the year. Friday, closing up 7.1 percent. The DOW hasn't done that since 1938.

The S&P 500 and NASDAQ logged their best months since January. The S&P 500 up 17 percent for the year marking its best first half of the year since 1997. Investors will have their eyes on the U.S. jobs report on Friday. Economists expect the unemployment rate remain at 3.6 percent in June with the addition of 165,000 jobs. Listen to what White House chief economic adviser Larry Kudlow said about criticism from Democratic presidential candidates over the U.S. economy.


KUDLOW: They don't understand me, these are very important, these are factual issues. OK? I understand that there's a political spin, but these are factual, measurable areas and I would just say I do not understand their narrative. We are in a strong prosper --


UNIDENTIFIED MALE: But, Larry, let me interrupt your campaign speech. I don't think you would --

KUDLOW: That is not a campaign speech. I'm citing facts and figures.


BRIGGS: 165,000 jobs would represent a slight slowdown from the average of 175,000 jobs created over the past six months. Any sign of weakness could increase calls for an interest rate cut from the Fed Reserve in July.

American consumers are still spending. They're not shopping at the mall anymore though. Nordstrom and Gap are the worst performing stocks in the S&P 500 so far this year. Down more than 30 percent.

KOSINSKI: Wow. BRIGGS: Big brick and mortar retailers are struggling to compete in a

world dominated by Amazon. Kohl's, Macy's and Foot Locker, also down more than 20 percent. All of those companies have recorded sluggish sales and profits, consumers increasingly shop online.

Thanks to our international viewers for joining us. Have a great rest of your day. For our U.S. viewers, "Early Start" continues right now.


TRUMP: Stepping across that line was a great honor. A lot of progress has been made.


BRIGGS: The president makes history crossing into North Korea, restarting nuclear talks, but a deal to curb Pyongyang's nuclear program still faces long odds.

KOSINSKI: The Kamala Harris campaign fighting back against online attacks about her race. One of them from the president's son.

BRIGGS: Breaking overnight. Protestors in Hong Kong smashed the front glass.