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The U.S. Prepares For Extraordinary Transfer Of Presidential Power; What The Incoming Administration's Policies Mean For You; Biden Faces Relationship With China Rattled By Trump. Aired 5:30-6a ET

Aired January 19, 2021 - 05:30   ET

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

[05:30:01]

LAURA JARRETT, CNN ANCHOR: Good morning. Welcome back to EARLY START. I'm Laura Jarrett.

CHRISTINE ROMANS, CNN ANCHOR: Good morning. I'm Christine Romans. It's just about 30 minutes past the hour.

And this morning, America is about 30 hours from a transfer of power unlike any we have ever seen. A presidency built on breaking norms and customs ending the same way.

President Trump has not invited the Bidens to the White House, has not urged his supporters to accept the incoming president, and will not participate in the inaugural. There will be no repeat of scenes like these. Mr. Trump will not greet the new president and the first lady at the White House door.

But none of that will stop Joseph R. Biden from becoming the 46th president at noon tomorrow. The gravity of the job ahead not lost on Biden or his incoming vice president, Kamala Harris.

(BEGIN VIDEO CLIP)

KAMALA HARRIS (D), VICE PRESIDENT-ELECT: We're going into Wednesday knowing that we're ready to do the work, and we've got a lot of work to do. It's not going to be easy.

(END VIDEO CLIP)

JARRETT: A man who touted himself as the best president since Lincoln ending his single term in office after a riot incited by lies and disgrace -- a finale to four years of pandemonium that will take many more years to recover from. But at the moment, the nation is looking forward.

Biden is putting final touches on his inaugural address and we're told he'll focus on uniting the country and recognizing all the challenges that he faces. The speech has changed multiple times, partly out of necessity, of course, after the deadly storming of the Capitol.

Today, Biden attends a sendoff event in Delaware before an event at the Lincoln Memorial to honor coronavirus victims. Thousands of flags are already on display on the National Mall in their honor.

Well, lost in all of the falsely disputed election fiasco, delayed transition, and the Capitol insurrection, a new administration means policy changes that affect you and your family, both immediately and in the long term.

CNN reporters have covered the president-elect extensively, so here is what to expect from the incoming White House.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT (on camera): I'm Elizabeth Cohen.

As part of his healthcare reform proposals, President-elect Joe Biden wants to enhance Obamacare and also move ahead with some initiatives from President Trump.

Biden wants to restore funds to promote Obamacare signup. Those funds were slashed under the Trump administration. Also, Biden wants to expand subsidies to buy health insurance so that no one on Obamacare pays more than 8.5 percent of their income.

Also, he wants to add a public option to Obamacare. That means a government-paid insurance plan. But he might keep Trump initiatives to lower drug prices.

Another Trump initiative that Biden might support is something called value-based care. And that means instead of paying for a doctor's office visit or a surgery or procedure as is done now, insurance might pay for the value of the care. In other words, what outcome it gives.

Now, making any of these changes in healthcare is very tough. Obamacare took several years, so we'll have to wait and see how these reforms turn out.

BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT (on camera): I'm Bill Weir.

And when it comes to whiplash reversals in policy, none will be more dramatic than climate and the environment. After four years of Donald Trump propping up oil, gas, and coal and really ignoring or undercutting the warnings of his own scientists, Joe Biden has promised to decarbonize the United States in just 30 years, and have this country running on 100 percent clean electricity within just 15.

Now, to pull this off it would require an operation warp speed-level mobilization. The way they fast-track vaccines to get them into arms, they'd have to do the same thing with clean energy projects. This will mean radical changes to energy, transportation, housing, agriculture, so it's going to take help from Congress. It remains to be seen how much he can get done via executive order in the short-term. It could stall some oil pipeline projects and new projects on federal land as well.

He has filled his cabinet with scientists and diplomats who have experience on the global stage and promises on day one to rejoin the Paris accords.

Now, meeting those promises are easier said than done, but at least it signals to the world that the United States believes in climate science again and is willing to take its share of the moral obligation to stop it.

PRISCILLA ALVAREZ, CNN IMMIGRATION REPORTER (on camera): I'm Priscilla Alvarez in Washington, D.C.

Biden has promised to undo Trump's immigration policies and return the United States to a country that welcomes immigrants. And he says he's going to do that in a number of ways, like reinstating DACA and revoking the Trump travel ban, as well as introducing immigration legislation that provides a pathway to citizenship for undocumented immigrants who are currently in the United States.

Biden also has said that he is going to halt construction of the border wall and to increase the annual refugee admissions cap.

[05:35:02]

Now, some of this is going to happen quickly through executive authority only a few days into Biden taking office, but other changes are going to take time as they work their way through the interagency process. But, Biden and his team have said that ultimately, they plan to develop policies that address the root causes of migration and provide more pathways for migrants.

JOSH CAMPBELL, CNN SECURITY CORRESPONDENT (on camera): I'm Josh Campbell.

As Joe Biden prepares to take office, one focus for his administration, he says, is going to be policing reform. Of course, we saw last year in the wake of the death of George Floyd, unprecedented protests -- hundreds of thousands of people taking to the streets demanding policing reform.

Biden says that one thing he wants to see is a ban on chokeholds, as well as a national use of force standard for police officers. At this point, it's up to individual cities and states to regulate officer conduct. Biden says he wants to see the federal government take a larger role.

Now, we know that policing reform largely failed in 2020, but with Democrats now controlling both the House and the Senate we'll be watching to see whether legislation makes its way through.

One other area Biden says is of interest and a focus for his administration will be gun control. Biden saying that he wants to see a ban on the sale of assault weapons and high-powered magazines. He wants to see the regulation of the existing purchase of these weapons.

And one final item that will be a priority for his team will be instituting universal background checks for the sale of all guns in the United States.

ARLETTE SAENZ, CNN POLITICAL CORRESPONDENT (on camera): I'm Arlette Saenz in Wilmington, Delaware.

One key area of focus for President-elect Biden will be education policy, especially as schools are grappling with teaching amid the pandemic. The president-elect has said that one of his top priorities is getting kids back in classrooms and that includes providing $175 billion to schools to be able to do just that.

The president-elect is also planning on signing an executive action that would extend the pause on federal student loan payments.

But there are also agenda items that he wants to tackle beyond the pandemic. The president-elect, during the campaign, advocated for two years of free community college. And he later also adopted a proposal that would provide free public college to families who are making under $125,000.

That is just a bit of what Biden is hoping to do once he's in office. And, of course, his wife, Jill Biden, is an educator and the president-elect has always said that teachers will have a friend in the White House.

(END VIDEOTAPE)

ROMANS: And then there's this. At noon tomorrow, Joe Biden inherits a crisis-stricken economy, down almost 10 million jobs. A recovery knocked back again and again by waves of coronavirus.

Today, Janet Yellen, Biden's nominee for Treasury secretary, will tell Congress to quote "act big" on the next stimulus package. She says now is absolutely not the time to worry about the deficit, which has soared 50 percent under President Trump from $14 trillion to more than $21 trillion.

Now, Biden's almost $2 trillion rescue plan has stimulus checks; money for schools, small businesses; state and local aid; and key here, a national vaccine program. A national strategy is key since the economy can't be fixed until the pandemic is under control.

Now, stimulus might help many businesses weather the storm but experts say it won't save all of them from going out of business.

The optimism comes sometime later this year when vaccines are rolled out so life can start to return to normal. Until then, uncertainty -- that's the enemy of business.

Mark Zandi, the chief economist at Moody's Analytics, said business owners aren't going to go out and hire more people because they're still unsure of what lies ahead in the future, Laura.

JARRETT: Well, one major roadblock to fixing the economy, of course, is that President-elect Biden is not likely to have a single cabinet nominee confirmed on day one of his presidency. Several of them face senators for confirmation hearings today, but sources tell CNN getting anyone confirmed by tomorrow is a real longshot.

It's notable because this is a departure from past practice. President Trump got two nominees confirmed on Inauguration Day, Barack Obama got six approved, and George W. Bush had seven nominees confirmed on day one.

Well, you're going to want to join CNN for all-day live coverage of the inauguration of President Joe Biden. A history-making event in unprecedented times. Special live coverage all day tomorrow on CNN.

(COMMERCIAL BREAK)

[05:43:40]

JARRETT: Well, a hard lockdown around the Capitol Building remains this morning ahead of President-elect Biden's inauguration.

Overnight, "The Washington Post" obtained an intelligence document showing the FBI privately warned law enforcement that far-right extremists have discussed posing as National Guard members at the inauguration. Now, the document didn't identify any specific plots, but the report said people were downloading and sharing maps of vulnerable locations in Washington, D.C.

Acting Sec. of Defense Christopher Miller said Monday there is no intelligence indicating an insider threat, but National Guard members arriving in Washington are being vetted by law enforcement.

ROMANS: Now, one group not being vetted, the guests of lawmakers for Wednesday's inauguration. Sources tell CNN that guests will not undergo background checks this year as is typically the case, but this isn't any other year, of course.

As of this morning, more than 80 people are facing federal charges for their role in the Capitol riot. New arrests include the woman an FBI tipster says may have stolen a laptop from House Speaker Nancy Pelosi's office. The FBI is already investigating whether she planned to sell it to Russia.

And two members of an Ohio militant group are facing charges as federal investigators appear to be shifting their sights onto the role that organized extremists played in that insurrection.

JARRETT: Army Sec. Ryan McCarthy claims the law enforcement response to the Capitol riot was hampered by an archaic system. In an interview with CNN, McCarthy calls for an overhaul of the bureaucracy, including how the National Guard is called in.

CNN has reported efforts to mobilize the National Guard were hamstrung by all the confusion.

[05:45:18]

(BEGIN VIDEO CLIP)

RYAN MCCARTHY, SECRETARY OF THE ARMY: The preplanning and coordination and the intelligence were not really managed well and we were not in a position to be successful that day. No one really understood the situation. No specifics or clarity -- or what the size of the crowd, where they were, did they actually breach the building? So there was great confusion.

(END VIDEO CLIP)

JARRETT: Still, questions are being raised about why the National Guard was not fully activated until hours after the mob descended on the Capitol. An official previously told CNN the Pentagon was too hesitant to deploy troops ahead of the protests.

ROMANS: So, arguably, the biggest foreign policy challenge facing Joe Biden is China. The Trump administration has made several moves that will complicate an already fraught relationship at a critical time. Recently, leaders of the U.S. Navy, Marine Corps, and Coast Guard even called for better integration to prepare for a potential high-end war with China.

International diplomatic editor Nic Robertson joins us from London. And, Nic, this is a long list of policy challenges for the incoming administration.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It's a huge list and you're right to put China at the top of it. You know, there is concern about China's growing military threat. They're on to their sort of third version of aircraft carrier. This will mean that they can project their force in power through the South China Seas, East China Seas -- the places that they contest at the moment.

And just this past week, President Trump announced through the State Department that the United States would lift its previous self- limitations on allowing diplomats and senior officials -- senior and other officials to go to Taiwan, which is a red line for China.

All of that points to escalating tensions with China. That's going to be on the front burner for Joe Biden. He said that he wants to tackle this through bringing allies on board. There's no shortage of support from allies to deal with China with its sort of coercive practices of essentially stealing intellectual property of western companies that are doing business there.

The internment of Uighurs. The British foreign secretary, just the other day, announcing that the U.K. has looked at satellite imagery of these massive internment camps in China.

So these are human rights issues, the labor practices -- all of these. But, Biden will have to bring allies together and interline to form a common agreement about how to deal with China. And just last week, the European Union struck a big, very significant trade deal with China.

So, you know, it's not all going to go Biden's way. The allies are lined up in some respects, but the depth of tensions that Trump has brought to the table during his tenure with China are huge. The latest one with Taiwan is just kind of the tip of it.

ROMANS: Nic, you know, his hard line -- Trump's hard line on China, it may have been right. It may have been even long overdue. I mean, that's what certainly, a lot of voters think. But the way he handled himself -- alienated American allies. So how does Biden balance that hard line, which basically there are

people in both parties who favor that hard line -- and then the global realities Trump never really accepted?

ROBERTSON: Look, I think some of the ways that Biden is going to do this is to -- is to reset to America that the allies know, and that is one that's joined into international trade organizations. The World Trade Organization possibly joining the Trans-Pacific Partnership -- that trade deal in Asia that President Trump decided not to join.

This is a way to signal to allies that you're willing to work together. And when it comes to China, that's on intelligence cooperation, military cooperation, diplomatic, economic cooperation all the way around China. So that's a big lift.

How does he convince the allies that he's going to do that? By being that leader that allies would like the United States to be.

He will be hampered at home. They recognize that it's a divided America. There's a cohort of Republicans that the rest of the world -- in particular, allies -- wonder will they be back in the White House next time. How long will any deal we make with Joe Biden on China last? They've got to look to their long-term interests as well.

So it's not going to be an easy lift for him but he's going to do it by signaling that he's willing to work with allies rather than just run roughshod, let's say, of what they want to achieve.

ROMANS: Yes. Nic Robertson for us in London. Thank you so much, Nic.

JARRETT: All right. Back here in the U.S., it's nearly 400,000 deaths from coronavirus. Imagine eliminating the population of an American city like Tampa or Arlington, Texas, or Tulsa, Oklahoma. That is the scale of what is happening now.

[05:50:00]

Overnight, an independent panel of experts said China and the World Health Organization could have acted more quickly and more forcefully to contain the start of the outbreak. Cases detected as early as December 12th were not recorded until December 31st.

ROMANS: The situation is dire across the U.S. The city of Laredo, Texas has run out of ICU beds and sent an emergency message urging residents to stay home. And in Houston, CNN affiliate KTRK reports one hospital actually had to close down because according to a notice on the doors, the owners are behind on rent.

(BEGIN VIDEO CLIP)

DR. FELICITY MACK, HEIGHTS HOSPITAL, HOUSTON, TEXAS: I tried to contact the owners, they aren't responding. The title company is not responding. So we're really not getting any answers. And at the end of the day, like I said, my primary concern is my patients.

(END VIDEO CLIP)

JARRETT: At the same time, frontline workers are still in harm's way. An Alabama nurse for 50 years, Betty Gallagher refused to retire when the pandemic began so that she could mentor the younger nurses. She died last week from coronavirus a day before her 79th birthday.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She was the person that, for me, was definitely always the encourager. Always the one reaching out to encourage us for the next step, encourage us for the next shift. Always keeping a smile on her face.

UNIDENTIFIED MALE: She's in a better place and her fight is over. She's fought the good fight and won the race.

(END VIDEO CLIP)

ROMANS: In New York, Gov. Andrew Cuomo has asked to buy vaccine doses directly from Pfizer. He says the quantity coming from the federal government is not adequate. It's just not enough.

The vaccine rollout is still behind the promised pace. West Virginia and the Dakotas are leading but only with five to six percent of the population vaccinated. We need 70 to 80 percent nationwide for normalcy.

States and businesses are stepping in where the federal government has not. Washington State announced partnerships with companies like Starbucks and Microsoft to coordinate resources and technology to get more people vaccinated.

JARRETT: Well, for one of its final acts, the Trump administration used Martin Luther King Day to release a divisive report on slavery and civil rights. The 45-page dog whistle, dubbed the 1776 Report, says quote, "Identity politics makes it less likely that racial reconciliation and healing can be attained by pursuing Martin Luther King Jr.'s dream."

Now, this report was issued by a commission President Trump formed last fall amid all the protests for racial justice across the country. And it seems to be in response to "The New York Times" 1619 Project -- the one aimed at teaching American students the truth about slavery. President-elect Biden can disband this commission once he takes office.

ROMANS: All right, looking at markets around the world this week you can see Asian shares closed mixed, and it's also a mixed opening in Europe. On Wall Street, futures, at this moment, moving higher here.

We will hear from the president-elect's choice for Treasury secretary today. Janet Yellen will underscore the urgency of Biden's $1.9 trillion stimulus plan. She's expected to tell Congress to go big.

Investors will also see earnings from Bank of America and Goldman Sachs. Despite weak expectations, investors are more interested in the future. Not what happened in the most recent quarter, but when will stimulus and vaccine distribution finally start to boost the American economy.

Meantime, there's this global computer ship shortage and it's putting automakers under pressure and threatening their recovery from the pandemic. Ford is closing its factory in Germany for a month because of the shortage and weak demand. It shut a plant in Kentucky last week because they couldn't get the chips.

Chip manufacturers face high demand for chips in smartphones and gaming systems. Automakers are struggling to get the chips that they need.

And more businesses are distancing themselves from Trump allies. You know that My Pillow CEO, Mike Lindell? He told CNN affiliate WCCO that Bed Bath & Beyond, Kohl's, and Wayfair have dropped My Pillow products from their stores. We have, at CNN, reached out to those retailers for comment to verify Lindell's claim here.

Lindell has repeatedly claimed the 2020 election was a fraud. Last week, he was seen leaving the White House with some notes and documents with all kinds of conspiracies along those lines.

Dominion Voting Systems has also sent a cease and desist letter to Lindell over his spread of lies related to the election.

JARRETT: We end today with an elementary schoolteacher from Virginia who is among the National Guardsmen currently protecting the U.S. Capitol. Yet, he's still teaching classes from the back of his Humvee. In between guard shifts, Sgt. Jacob Kohut jumps online to teach his young students band lessons. He says he's a soldier for both the Constitution and music education.

(BEGIN VIDEO CLIP)

SGT. JACOB KOHUT, TEACHER, NATIONAL GUARDSMAN: I tried to actually give an explanation. I had a time of just explaining what's going on and to make sure they're not -- they're not worried about us or me or anything like that.

My wife, who is just awesome, taking care of our 3-year-old son. His birthday's on Sunday. I hope I get to see him.

(END VIDEO CLIP)

JARRETT: Kohut says it's important to keep teaching his students while fulfilling his Guard duties, given the challenges of remote learning.

[05:55:02]

Talk about multitasking -- wow.

ROMANS: And what a great civics lesson for the kids, right --

JARRETT: Yes, yes. ROMANS: -- to understand like the service of your -- of your fellow Americans.

JARRETT: Why he's there.

ROMANS: Absolutely.

All right, thanks for joining us, everyone. I'm Christine Romans.

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

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Washington, right now, is not taking any chances on this inauguration.

UNIDENTIFIED MALE: Those who will guard the U.S. Capitol during President-elect Biden's inauguration are now being vetted in an attempt to head off any insider threats.

JIM ACOSTA, CNN CHIEF WHITE HOUSE CORRESPONDENT: The president is not going to be at the inauguration of Joe Biden. He's going to be over at Joint Base Andrews. It is going to be something of a sendoff that you would see for a departing head of state.

UNIDENTIFIED MALE: The inaugural address is still being written. It is going to be steeped in history, talking about.