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Early Start with John Berman and Zoraida Sambolin

Trump Lashing Out As 2020 Campaign Reality Sets In; Obama Campaigns For Biden Today In Philadelphia; Health Experts Warn To Expect Period Of Rapid Acceleration In Coronavirus. Aired 5:30-6a ET

Aired October 21, 2020 - 05:30   ET

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


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[05:31:20]

LAURA JARRETT, CNN ANCHOR: Stark contrasts on display as Donald Trump and Joe Biden prepare for their final debate. And, Homeland Security officials urge patience. Don't expect a quick election result.

CHRISTINE ROMANS, CNN ANCHOR: If this isn't rapid acceleration, what is? A dire pandemic warning from a top health expert.

JARRETT: And another bombshell from the president's taxes. We'll tell you which foreign power could have held major sway in Trump Tower.

Good morning, this is EARLY START. I'm Laura Jarrett.

ROMANS: Hi there, Laura. I'm Christine Romans. It's 31 minutes past the hour.

And with the U.S. inching closer toward an election that will define its future, top Homeland Security officials are now urging patience from voters. They warn election results likely will not be known on election night despite President Trump's demand for immediate results.

And tensions are starting to boil over. Election officials in Florida and Alaska -- they contacted law enforcement after voters reported receiving threatening e-mails saying "Vote for Trump or else."

The president, for his part, still struggling to find a compelling rationale for his reelection ahead of that final debate tomorrow.

JARRETT: All of this with the pandemic only worsening, surpassing 60,000 new cases for the third time in a week. That hasn't happened since July.

And the president, last night, holding a rally in Pennsylvania with very few masks seen in that crowd and no social distancing whatsoever. This, on the same day that state saw 1,000 new COVID cases for the 15th consecutive day there.

The president gave his supporters a rare reality check, also, on the state of his campaign.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Before the plague came in, I had it made.

I wasn't coming to Erie. I mean, I have to be honest -- there's no way I was coming. I didn't have to. I would have called you and said hey, Erie, you know, if you have a chance get out and vote. We had this thing won.

(END VIDEO CLIP)

ROMANS: The president has been expanding his list of enemies, narrowing the scope of his campaign to attacking them rather than focusing on voters' needs. A source tells CNN one Trump ally told the president that the attacks on Dr. Anthony Fauci are, quote, "the dumbest thing in the history of politics."

JARRETT: President Trump says he may try to interrupt Joe Biden less during this coming Thursday night's debate. Biden, for his part, approves of the new plan to mute the opposing candidate's microphone at the start of each segment in the debate.

And the former vice president is getting a big boost from his old boss who has a message for young voters before hitting the campaign trail today.

(BEGIN VIDEO CLIP)

BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: Your generation can be the one that creates a new normal in America -- one that's fair where the system treats everybody equally and gives everybody opportunity. We can come out of this moment stronger than before.

(END VIDEO CLIP)

JARRETT: There's a chance that President Obama and Joe Biden could also hit the campaign trail together before Election Day.

ROMANS: All right, 13 days to the election. It's time for three questions in three minutes. Let's bring in CNN senior political analyst John Avlon. Nice to see you, John.

JOHN AVLON, CNN SENIOR POLITICAL ANALYST: Good morning, humans.

ROMANS: You know, I've got to tell you, the president has spent the last week lashing out at everyone in sight, going to rallies for crowd size but ignoring the voters so he can -- he's airing his own grievances, right? Joe Biden, on the other hand, has laid low, prepping for the debate.

What's going through your mind if you're a voter watching this all play out?

AVLON: Well, where you stand on that one is probably a matter of where you sit, although it's hard to take rational comfort from Donald Trump's behavior on this stuff. If you say -- erratic is almost too dignified a way to describe what Donald Trump has been doing in recent days. He's been venting his spleen, airing grievances, lashing out. I mean, the quote from the GOP ally who called his attacks on Dr.

Fauci the dumbest thing ever in the history of politics is pretty stark, but that's the unvarnished truth as some folks see it.

[05:35:03]

Then, of course, there's the storming out on "60 MINUTES," which I have a feeling will dominate a lot of stories on Sunday night.

Look, for Joe Biden, he's taking the debate prep seriously. He's taking his campaign seriously. It's a strange sensation, I know.

But, if you don't like Joe Biden, you may say that why isn't he out more?

ROMANS: Right.

AVLON: Why isn't he playing offense more? And that's a real risk. I think, you know, President Obama getting on the -- on the campaign trail could make a big difference today but it's all going to be about the debate at the end of the day.

JARRETT: So, John, overnight, "The New York Times" publishes more of its investigation into the president's taxes --

AVLON: Yes.

JARRETT: -- and it shows a couple of interesting things.

Trump had a previously unknown bank account in China and even operated an office there during his first run for president. Now, his lawyer says that no deals ever materialized so what's the big deal. But it seems that this really goes to where are the president's interests and how he makes decisions about things based on some of these business dealings that we didn't know about.

Is this something that you think Joe Biden will sort of leverage?

AVLON: Absolutely -- because look, you know, Donald Trump has been trying to tie Joe Biden to China. It really is a counter way to rational, serious, and extensive questions about Russia and his campaign and his contacts. So he's been trying to tie Biden with China.

There are many problems with Donald Trump and China -- this simply adds to them. The fact that he had a bank account in China that was previously undisclosed, that he was operating an office in China previously undisclosed during the last presidential campaign, it takes all the existing questions about the president's projection and amplifies them dramatically.

This is a big deal because Trump has tried to make such a big deal about China in this election.

ROMANS: Let me ask you about this new story overnight, John. Lawyers say they cannot find the parents of 545 migrant children separated at the border by the Trump administration. That's one in four kids separated who may never see their parents again.

We've spoken a lot this election cycle about empathy or the lack of it, right? What's the reaction to this today?

AVLON: Not nearly as much outrage and shame as there should be. Look, this was a huge story a year ago but whether you have -- are skeptical about government's ability to be competent or you believe the government has a responsibility to act as a moral force, this is a massive failure. This is 545 children who have been separated from the president -- from their parents and the government can't seem to find them -- can't seem to reunite them.

And we know now this was a policy of intentional cruelty designed to deter people from crossing the border. It has separated and destroyed families and now it cannot reunite them. It'll get lost in a lot of the noise of the campaign -- it shouldn't.

ROMANS: Well, that's why we're doing it --

AVLON: That's right.

ROMANS: -- to remind -- to remind everyone how important this is and what it says about the moral character of the country we are in.

John Avlon, senior political analyst. Thank you, John.

AVLON: Thank you, guys.

JARRETT: Thanks, John -- appreciate it.

All right, 933 deaths from coronavirus were reported in the U.S. just yesterday. That is the highest American death rate it's been in almost a month and here's why. The seven-day average of cases is up 44 percent in three weeks and the rate of increase -- well, it's not slowing.

(BEGIN VIDEO CLIP)

DR. SCOTT GOTTLIEB, FORMER COMMISSIONER, FOOD AND DRUG ADMINISTRATION: I think we're about two or three weeks behind Europe, so we're about a week away from starting to enter a period where we're going to see a rapid acceleration in cases.

There really is not backstop, you know. This summer was a backstop of sorts to the spring surge. And we have no therapeutic backstop. And the season -- the fall and winter season is when this coronavirus is going to want to spread.

(END VIDEO CLIP)

ROMANS: Homes lost, businesses shuttered, virtual school, holidays canceled, people desperately sick. All these statistics every day can cloud the reality that families are suffering. Remember that almost 400,000 Americans are expected to die by February first.

(BEGIN VIDEO CLIP) DR. CHARLES MARMAR, NYU GROSSMAN SCHOOL OF MEDICINE: Alone from the 300,000-400,000 deaths, there are three to four million Americans who are recently bereft, and that's over a relatively brief period of six or seven months. But that is an epidemic of pathological grief, which is a downstream consequence of the pandemic.

(END VIDEO CLIP)

JARRETT: Pathological grieving.

And to that point, student journalists at the University of South Carolina say they won't be putting out any content for almost two weeks. They say lack of sleep, forgetting to eat, and just too much stress have the entire staff near the breaking point.

ROMANS: And a new audit alleges Iowa's governor, Kim Reynolds, misused $21 million in federal CARES Act funds to pay for staff salaries and accounting software. Reynolds' office justifying the expenses as helpful to assist in pandemic response.

All right, the coronavirus recession is speeding up automation and that could displace 85 million jobs within the next five years. A new report from the World Economic Forum warns inequality will likely increase unless these displaced workers can be retrained for new jobs.

"Automation, in tandem with the COVID-19 recession, is creating a 'double disruption' scenario for workers," the report finds.

[05:40:01]

The pandemic has caused consumers and businesses to adopt more technology, increasing demand for cloud computing and e-commerce services, but hurting businesses that can't serve their customers online.

Workers unable to work from home, either because they need to be there in person or they have limited Internet access -- they've been put at a real disadvantage here. Some workers whose jobs are at risk may be able to move into careers. The report found 94 percent of businesses surveyed expect employees to pick up new skills on the job.

JARRETT: Well, the British government is forcing Manchester into heightened restrictions as the pandemic worsens. Meantime, a partial lockdown is about to take effect in neighboring Ireland.

CNN's Nic Robertson is live for us in London. Nic, nice to see you this morning. Of course, no one wants to go backwards, no one wants a backslide. How is this new lockdown being received?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes. Well, the government is saying it's absolutely necessary in Manchester. Quite simply, the numbers of people infected with coronavirus are going through the roof, particularly in the older age group -- 65-plus -- meaning hospitals are filling up.

What happened -- 10 days of negotiations where the government was negotiating with local regional leaders in the Manchester area to try to find a formula of what could close and what government support could be available for those beleaguered businesses and people that were going to be hurt by this. They failed to agree.

The regional leaders said they needed a minimum of about $85 million -- a population of about 2 1/2 million in that area -- $85 million. The government came up just $6.5 million short of that. So the lack of agreement there is sending quite a negative signal to people of this city and to other regions who are going to have to go through these negotiations with the government.

Meanwhile, Ireland -- the (INAUDIBLE) there -- the prime minister came out and said as of tonight, Wednesday night, the country is going to be locked down tighter than anywhere else in Europe. Tight restrictions.

Retail businesses will all be shuttered apart from those that are absolutely needed -- supermarkets and such like. People are being told to work from home. They won't be allowed to leave their local areas, and be limited to a distance of about three miles from their houses.

There's a lot of consternation and pushback about this but the prime minister says, quite simply, do a six-week tough lockdown right now and maybe -- maybe we can have a slightly better Christmas. People are worried there.

JARRETT: Yes -- certainly, the trade-off everyone's trying to struggle with there.

All right, Nic, thank you so much. Nice to see you.

Well, it is a lengthy and potentially historic battle in store between Google and the Department of Justice now. In a landmark move that could alter Silicon Valley, the government is suing Google, accusing the company of stifling competition. It argues Google unfairly dominates online search and digital advertising.

For example, Google pays Apple billions a year to have its search engine on -- as the default on its devices. Google also has contracts with smartphone makers to make its search engine the default.

Now, Google says these agreements don't box out competitors. The company says people use Google by choice and most of its services are offered for free.

ROMANS: The bottom line here is what hangs in the balance for Internet users is a potential breakup of the Internet search and advertising components. Google says that could hurt search results and force prices up.

It's the most significant legal pursuit for the Department of Justice since the landmark case against Microsoft nearly 20 years ago. That took a decade to play out so get ready for a long legal battle here.

JARRETT: Yes. It will be interesting to see how that plays out.

ROMANS: Yes.

We'll be right back.

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[05:47:54]

ROMANS: New research suggests ways to keep coronavirus from spreading at school. CNN has the pandemic covered coast-to-coast.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: I'm Elizabeth Cohen in Atlanta.

Physicists at the University of New Mexico simulated a classroom of nine students and one teacher to see how COVID-19 might spread. And what they found is that even when all of the people were placed almost eight feet apart, the particles that contain the virus could go from person-to-person.

So what they suggest is open the window and also put a shield in front of each desk -- a glass shield or a plastic shield. And also keep the A.C. or the heat running. They said that those dramatically reduced the spread of those particles from person-to-person.

CHLOE MELAS, CNN ENTERTAINMENT REPORTER: I'm Chloe Melas in New York.

Las Vegas is bringing back some of its live entertainment. MGM Resorts announced Tuesday that seven of their shows will reopen on November sixth. Among the entertainers that are going to return to the stage are magician David Copperfield and comedian Carrot Top.

MGM's resorts include some of the strip's most iconic venues like the Bellagio, Mandalay Bay, and the MGM Grand. And it will be the first time these venues will have live shows since the pandemic began in March, and they will be performing in front of a live audience.

MGM Resorts has announced the new safety measures that they will be taking, which includes adhering to social distancing guidelines, requiring everyone in their venues to wear masks, and to a health screening before entering their resorts, along with concessions only being available through your mobile device.

ERICA HILL, CNN NATIONAL CORRESPONDENT: I'm Erica Hill.

New Jersey Gov. Phil Murphy is urging residents in his state to keep their holiday gatherings small and stick to their existing bubbles. And ideally, if they have to get together to do it outside.

That push comes as cases rise in the Garden State and as more experts point to small gatherings, often with family and friends, as fueling the spread. The governor noting smaller muted celebrations this year could mean normal holidays next year.

(END VIDEOTAPE) JARRETT: Thanks to all of our correspondents for those reports.

[05:50:00]

Well, a police sergeant at the center of the Breonna Taylor case says that the shooting was not about race. Sergeant Jonathan Mattingly speaking out for the first time in a new interview with ABC News and the "Courier-Journal."

(BEGIN VIDEO CLIP)

SGT. JONATHAN MATTINGLY, LOUISVILLE POLICE DEPARTMENT: It's not a race thing like people want to try to make it to be -- it's not. This is a point where we were doing our job and returned fire.

This is not us going and hunting somebody down. This is not kneeling on a neck. This is nothing like that.

(END VIDEO CLIP)

JARRETT: Mattingly says that officers thought that Breonna Taylor would be at the apartment there by herself.

He went on to -- he was actually shot by Taylor's boyfriend. Prosecutors say that that shot gave the officers a reason to open fire, which ultimately led to Taylor's death. But no charges were filed for that killing.

ROMANS: Former detective Brett Hankison faces charges of wanton endangerment for firing blindly into Taylor's apartment.

Now, an anonymous member of the grand jury says that they were never given the opportunity to even consider homicide charges. A Kentucky judge ruled the grand juror may speak publicly about the case. Kentucky Attorney General Daniel Cameron disagreed with that decision but says he will not appeal it.

JARRETT: The fire that killed 34 people in the Conception boat disaster off the coast of California last year may have been sparked by cellphones and batteries left charging overnight. The NTSB condemned the company, Truth Aquatics, and the captain for a litany of issues, including failing to train the crew on emergency procedures. The frustrated NTSB chairman telling the company clean up your act.

An attorney for Truth Aquatics did not comment.

ROMANS: All right.

FedEx returns are about to become more customer-friendly. You'll be able to return products in-person without a box or a label for an immediate refund or exchange from participating retailers. The company says the in-person return service will be available at more than 2,000 locations across the country starting in Los Angeles and expanding nationwide by the end of the month.

JARRETT: Got to like the sound of that. ROMANS: Yes.

JARRETT: Well, some welcome relief from politics as usual here. Two candidates running against each other in Utah's race for governor, Republican Spencer Cox and Democrat Chris Peterson, standing united in a campaign ad.

(BEGIN VIDEO CLIP)

SPENCER COX (R), NOMINEE FOR UTAH GOVERNOR: And while I think you should vote for me --

CHRIS PETERSON (D), NOMINEE FOR UTAH GOVERNOR: Yes. But really, you should vote for me.

COX: -- there are some things we both agree on.

PETERSON: We can debate issues without degrading each other's character.

COX: We can disagree without hating each other.

PETERSON: And win or lose in Utah, we work together.

(END VIDEO CLIP)

JARRETT: Both candidates promising to accept the election results there. Cox, the current lieutenant governor, is heavily favored to win that race. The ad has been viewed more than two million times on Cox's Twitter page.

ROMANS: That is one of the best things I've seen in a long time -- political civility.

Let's get a check on CNN Business this morning. Losses for markets around the world here. Tokyo and Hong Kong moving up, but you can see European shares leaning down here.

On Wall Street, watching futures barely moving, really, this morning, trying to find some direction here on what is the latest in new stimulus. You know, stocks closed higher yesterday. Investors clinging to hope that a new stimulus deal could be reached.

The Dow up about 113 points. The S&P 500 and the Nasdaq also ended the day higher. But then later, there seems to be some cold water coming from Senate Republicans about whether they'll support a $2 trillion deal, so here we go.

JPMorgan Chase taking on Square and PayPal with its new card reader for small businesses. Its new QuickAccept will allow business owners to take credit card payments through an app or contactless card reader. Customers will then see the sale hit their Chase accounts on the same day.

Contactless payments have become more popular in recent years and even more so during the pandemic. All right, Netflix's pandemic bump may be fading. The streaming giant said Tuesday it added 2.2 million new memberships in the third quarter. That's down from 6.8 million during the same time last year and less than Wall Street had hoped.

Netflix has really thrived this year as people were stuck at home, but there have been questions about whether it can keep that momentum up, especially in a crowded streaming market.

And the holiday season -- the shopping season is starting earlier and it's going to look a lot different in the middle of this outbreak here.

Lowe's is offering free Christmas tree delivery for the first time. That's starting October 30th.

FedEx and UPS have already told some customers most of their capacity is already spoken for as they gear up for the holiday surge of online orders.

But holiday sales look bleak for Main Street. A Deloitte survey found almost 51 percent of holiday shoppers feel anxious about shopping in stores, Laura.

JARRETT: All right.

Well, here is an out-of-this-world first for NASA and the U.S. The Osiris-Rex spacecraft touched an asteroid Tuesday -- you can see the excitement there -- reaching out its robotic arm to collect a sample from the surface of the asteroid Bennu.

Scientists are hoping to study the sample to piece together more about the solar system's evolution. The probe is scheduled to return to earth in 2023.

ROMANS: That is so cool. I mean, imagine having that kind of a job, right? What did you do today, honey? Oh, I helped an asteroid -- I helped touch an asteroid. What did you do, dear?

Thanks for joining us.

JARRETT: Very cool.

ROMANS: I'm Christine Romans.

[05:55:00]

JARRETT: I'm Laura Jarrett. "NEW DAY" is next.

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(BEGIN VIDEO CLIP)

OBAMA: We can come out of this moment stronger than before.

ARLETTE SAENZ, CNN POLITICAL CORRESPONDENT: Former President Barack Obama will hit the campaign trail in Philadelphia.

UNIDENTIFIED MALE: President Trump is presenting a familiar closing argument, attacking his enemies and firing up the base.

TRUMP: Before the plague came in, I had it made. We had this thing won. We were so far up. We had the greatest economy ever.

UNIDENTIFIED FEMALE: The dreaded second wave now washing over the U.S.

GOTTLIEB: We're facing a tough circumstance right now. We're going to see accelerating cases.