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U.S. and Tehran Looking for Way Out of Rising Conflict; Flynn Aided Mueller's Obstruction Probe; Trump Unveils His Immigration Plan; Walmart to Raise Prices Because of Tariffs. Aired 4-4:30a ET
Aired May 17, 2019 - 04:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[04:00:24] DAVE BRIGGS, CNN ANCHOR: CNN with new information on what the U.S. believes to be missiles on Iranian freighters in the Persian Gulf.
CHRISTINE ROMANS, CNN ANCHOR: Walmart now says it will raise prices on some items because of President Trump's tariffs on China.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: That's a military airplane in our building.
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BRIGGS: Imagine that. A fighter jet comes crashing through the roof of a California warehouse after the pilot ejects.
ROMANS: Big changes are coming to the SATs. New scores for students that have nothing to do with academics.
Good morning. And welcome to EARLY START, everybody. I'm Christine Romans.
BRIGGS: That major changes on how your kids could get into college. I'm Dave Briggs. Friday, May 17th. Happy Friday. It is 4:00 a.m. in the East. Half past noon in Iran. And that's where we begin this morning.
The U.S. believes Iran is using commercial ships in the Persian Gulf to carry missiles. A U.S. official tells CNN the government has multiple images of Iranian freighters that have been modified. The U.S. claims the pictures show large areas of the deck removed to carry missiles. CNN has not reviewed the intelligence supporting the U.S.'s assessment and the government has not provided any proof the ships are carrying missiles or other munitions.
ROMANS: President Trump is trying to curb the intensifying conflict with Iran. The "New York Times" reports the president on Wednesday told acting Defense Secretary Patrick Shanahan he does not want to go to war. That message also aimed at his more hawkish aides. It was underscored at a brief White House photo-op yesterday.
(BEGIN VIDEO CLIP)
UNIDENTIFIED REPORTER: Mr. President, are we going to war with Iran?
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I hope not.
(END VIDEO CLIP)
ROMANS: The president apparently searching for a diplomatic way out of this mounting crisis. Are Iranian leaders doing the same?
Let's bring in senior international correspondent Fred Pleitgen live in Tehran -- Fred.
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hi, Christine. Well, the Iranians once again have overnight said that there are not going to be any negotiations with the Trump administration at least at this point in time, this time in the form of Iran's Foreign Minister Javad Zarif who was on a visit to Japan, I think is now moving over to China. And essentially what the Iranians are saying is that under these circumstances they are not willing to negotiate specifically with the Trump White House.
They say several things need to happen. First of all, they want some of the sanctions to be lifted off their country. They want to be able to see their oil on international markets. They want companies specifically from Europe to be able to invest in Iran once again without having to fear American backlash or American sanctions.
In an ideal world, they would also like the U.S. to go back into the nuclear agreement but of course judging from the sense of the White House right now that doesn't seem to be something that's in the cards anytime soon.
Now as far as those new satellite images are concerned, we haven't really seen much of a reaction from the Iranians. But I did pick up an interesting nugget just a couple of minutes ago. There was an interview with Iran's ambassador to the United Nations that was put out on Iranian media overnight. And in that he said that the Iranians as he put it are not preparing for any sort of conflict but said they do want to be prepared in case a conflict starts. So essentially the Iranians are saying that any sort of military preparations that they're making in the Persian Gulf area by their standards at least are defensive in nature.
One of the things that we do know from the Iranians is that they have been beefing up their navy in that Persian Gulf region. So certainly they do seem to be preparing for something that could happen. Whether or not that's offensive or defensive of course is a big bone of contention not just in the United States but of course around the world as well -- Christine.
ROMANS: All right. Frederik Pleitgen for us in Tehran this morning. Thanks, Fred.
Attorney General Bill Barr says explanations he's been given for the origin of the Russia probe, quote, "don't hang together." Barr telling FOX News during a visit to El Salvador that he now has more questions today than when he first started investigating the investigation.
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WILLIAM BARR, ATTORNEY GENERAL: People have to find out what the government was doing during that period. If we're -- if we're worried about foreign influence for the very same reason we should be worried about whether government officials abuse their power and put their thumb on the scale. And so I'm not saying that happened but I'm saying that we have to look at that.
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ROMANS: CNN reporting earlier this week that Barr has appointed a top federal prosecutor to look into the genesis of the Russia investigation. Barr has also enlisted the help of the CIA and the director of National Intelligence.
BRIGGS: New details about Michael Flynn's cooperation with Special Counsel Robert Mueller. Unsealed court records show the convicted former National Security adviser flagged multiple attempts to obstruct justice. Flynn told Mueller that people connected to the Trump administration or Congress called him potentially trying to obstruct justice.
[04:05:05] Flynn gave Mueller a voicemail recording of one of those conversations. The federal judge has ordered the public release by May 31st of portions of the Mueller report related to Flynn. Sections that may still be redacted. The judge also ordered the release of transcripts for Flynn's conversations with Russian officials during the transition and the transcript of the voicemail Flynn gave Mueller.
ROMANS: House Intelligence Committee chairman Adam Schiff says he's ready to take enforcement action against the Justice Department for not complying with his subpoena for counterintelligence information from the special counsel's probe.
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REP. ADAM SCHIFF (D-CA): They can't even give a 450 pages to a Democratic Congress but they gave ultimately over a million pages of discovery to the Republican Congress. They have been able to provide no justification for that double standard and hypocrisy. They're going to have to defend that in court if they press this.
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ROMANS: Schiff told reporters the committee will hold a meeting next week to take unspecified action against the Justice Department for not handing over the documents but a letter obtained by CNN reveals the Justice Department offered Wednesday to show all the committee members a less redacted version of Robert Mueller's report. Schiff did not say whether he would move to hold Attorney General Bill Barr in contempt.
The House Judiciary Committee already did that after the department declined to provide the panel with the unredacted Mueller report and supporting evidence.
BRIGGS: President Trump announcing his broad plan to reform border security and legal immigration, calling for changes that would favor young, educated immigrants instead of those with family ties to the U.S. The measure calls for a points based system that would favor highly skilled, financially self-sufficient immigrants who learn English and pass a civics exam.
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TRUMP: Random selection is contrary to American values. Under the senseless rules of the current system, we're not able to give preference to a doctor, a researcher, a student who graduated number one in his class from the finest colleges in the world.
We discriminate against genius. We discriminate against brilliance. We won't anymore, once we get this passed.
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BRIGGS: Trump cast the measure as a consensus plan that would solve one of Washington's most stubborn challenges but the plan faces an uphill battle, even among Republicans. Democrats are all but certain to oppose it calling the changes drastic and inhumane.
As expected it does not propose any legal status for so-called Dreamers, young immigrants brought to the U.S. as children leaving that issue unresolved.
ROMANS: All right. Today lawmakers in the Missouri House are expected to pass a bill banning abortion after eight weeks of pregnancy. The state Senate approved the measure Thursday, 24-10. All of the yes votes came from Republicans, three of them women. Governor Mike Parson has already promised to sign this bill which has no exceptions, no exceptions for rape or incest.
The bill is among strict abortion laws being passed recently in several states. Alabama Governor Kay Ivey signed a flat-out ban Wednesday. All the measures aimed at giving the Supreme Court an opportunity to overturn "Roe versus Wade."
BRIGGS: President Trump reporting income of at least $434 million for 2018. That according to an annual financial disclosure just released by the White House. The figure includes $40.8 in revenue from the Trump International Hotel located just blocks from the White House, and $22.7 million from his Mar-a-Lago resort in Florida. Down from the $25.1 million he disclosed for 2017.
Now overall the president's income appears to have decreased from the $450 million plus he reported earnings in 2017. Mr. Trump also reports holding outstanding debt of at least $315 million.
Tonight at 9:00 Eastern, CNN's Erin Burnett investigates how President Trump and his family do business. A CNN Special Report, "THE TRUMP FAMILY BUSINESS" tonight 9:00 only on CNN. ROMANS: All right. This is what a trade war looks like. America's
largest retailer Walmart says it will raise prices on some products because of President Trump's tariffs on China. Its CFO Brett Biggs said Thursday, "We're going to continue to do everything we can to keep prices low. That's who we are. However, increased tariffs will lead to increased prices we believe for our customers." He did not say which items will become more expensive but noted Walmart is working with its suppliers to manage prices.
But here's what Kevin Hassett, chairman of the Council of Economic Advisers said last night about Walmart's announcement?
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ERIN BURNETT, CNN ANCHOR: Wouldn't the CFO of Walmart know what he's talking about? I mean, I don't think the CFO of Walmart would go out and say prices are going up unless he looked at it and knew they were going to go out.
KEVIN HASSETT, CHAIRMAN, COUNCIL OF ECONOMIC ADVISERS: You go up and down the aisle, there's a million things and of course there are going to be some products that don't have close substitutes but a lot of them do.
[04:10:07] And then in the end, it's an empirical question which is dominating, and if you look at inflation in the U.S. it's been decelerating. And so I don't think that you could say that the tariffs have caused this but --
BURNETT: But you think he's got it wrong. So the president --
HASSETT: Yes. It's not in the data what he's saying. Not in the aggregate data for sure.
(END VIDEO CLIP)
ROMANS: All right. Walmart isn't the only retailer warning the tariffs will hit customers. Macy's announced Wednesday it will raise prices on some merchandise because of the trade war. Now on the other side of Trump's tariffs, Stanley Black & Decker announced plans to move production of its craftsman wrenches out of China and back to the U.S. It's building a new plant in Fort Worth with all kinds of new high technology. That plant is going to open in late 2020.
Stanley said the Fort Worth plant will employ 500 full-time employees. And here's an interesting part about that story. You know, the older equipment they have in China and the workers and the workers' skills they have in China, they're replacing with technology in the U.S. And this is also a high-tech story. So 500 jobs but a lot of robotics and high tech that allow them to make some of these Stanley wrenches in the U.S.
BRIGGS: But will those wrenches be more expensive because they're made here in the U.S.? That may take some time to turn out but --
ROMANS: Well, that's the technology part of it. They're also trying to more -- build more where they are, right?
BRIGGS: Yes.
ROMANS: Which is kind of the reverse of globalization, right. You use to build where the cheapest place was and then spread it wherever it was.
BRIGGS: Protectionism.
ROMANS: Build where they're buying it. That's what they're trying to do.
BRIGGS: All right. This story should matter to you, parents. Coming up, the new SAT scores that have more to do with where you live instead of what you study.
ROMANS: Plus the fighter jet that plunged through a roof of a California warehouse.
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[04:16:10] ROMANS: An F-16 fighter jet crashing on takeoff from a March Air Reserve base near Riverside, California. The plane slammed through the roof of a nearby warehouse.
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UNIDENTIFIED MALE: That's (EXPLETIVE DELETED) airplane. That's a military airplane in our building.
(END VIDEO CLIP)
ROMANS: Airport officials say a hydraulic failure led to the jet's crash. The pilot ejected before impact and had no minor injuries. The CEO of the company in the warehouse says his employees are all safe but air base officials say five people were injured on the ground. We have reached out for details on their conditions.
A Tesla Model 3 sedan was on auto pilot when it crashed into a semi- truck killing the car's driver. A report by the National Transportation Safety Board says the driver engaged the autopilot just seconds before the fatal accident on a Florida highway back in March. And the driver's hands were not detected on the steering wheel.
This is not the first fatal crash while Tesla's autopilot function was engaged. And it raises questions about Tesla's marketing of its semiautonomous driving software. Critics says slapping the autopilot name on to a driver assistance feature can lull people into a false sense of security making them less likely to stay fully alert and more vulnerable to a crash.
All right. Changes are coming to the SAT exam. An adversity score is being added to the test. It will take into account a student's social and economic background. The college board that administers the SATs says it will be implementing an environmental context dash board, environmental context dash board which measures factors like the crime rate and poverty levels of a student's neighborhood. The score will be rolled out to 150 schools this year and more widely in 2020. The idea is to better capture an applicant's resourcefulness to overcome challenges and achieve more with less. The change comes as colleges face heightened scrutiny over the admissions process and the diversity of their student bodies.
All right. Mayor Pete Buttigieg gets personal.
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MAYOR PETE BUTTIGIEG (D-IN), PRESIDENTIAL CANDIDATE: I think it did kind of push me over the edge.
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ROMANS: The 2020 candidate talks about how his military service in Afghanistan has shaped his life since.
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[04:23:12] BRIGGS: 4:22 Eastern Time, and a new FOX poll has Joe Biden widening his lead over the entire Democratic field and President Trump in a head-to-head matchup. Take a look at these numbers. Biden has more than double the support of runner-up Bernie Sanders. Elizabeth Warren is a distant third with 9 percent and in a one-on-one contest, Biden beats President Trump by 11 points, 49 to 38 percent. Sanders has a five-point margin over the president and Warren a two- point edge.
ROMANS: All right. South Bend mayor and Democratic candidate Pete Buttigieg talking to CNN about his military service. Now he frequently makes reference to it on the campaign trail.
CNN's Jeff Zeleny asked him about coming out after serving in Afghanistan and while still in uniform.
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BUTTIGIEG: It was the reflecting I did while I was overseas. Talking to so many people who have made it clear that their purpose in life, their motivation for making sure they came home safe. The reason I needed to make sure they came home safe if they were in my vehicle was that they wanted to get home to the people they loved and realizing that I'm a grown man, I'm an officer, I'm a mayor, and I have no idea what it's like to be in love.
That situation became more and more untenable in my mind while I was serving and so I think it did kind of push me over the edge when I could have found more excuses to just take my time on coming out.
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ROMANS: Buttigieg is one of three Democrats running for president who served in America's longest wars in Iraq and Afghanistan.
BRIGGS: A tough launch for Bill de Blasio's long shot presidential campaign. The New York City mayor becoming the 23rd Democrat to enter this race, but he had a tough time laying out his vision during an interview on "Good Morning America." As you can see, police and public housing tenants were protesting outside the studio and came close to drowning him out.
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[04:25:03] UNIDENTIFIED PROTESTERS: Liar, liar, liar, liar.
GEORGE STEPHANOPOULOS, ABC NEWS ANCHOR: So it's a tough city. We're hearing it outside. Some protesters.
MAYOR BILL DE BLASIO (D-NY), PRESIDENTIAL CANDIDATE: A little serenade, George. It's a little serenade.
(END VIDEO CLIP)
BRIGGS: The chant was "liar," you see there. The New York City Police Union upset with De Blasio claiming he is stalling on a new labor contract.
ROMANS: All right. There was laughter and tears during the series finale of the "Big Bang Theory."
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UNIDENTIFIED MALE: I want you to know in my way I love you all.
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ROMANS: All right. The CBS sitcom ended its 12th season run Thursday with a one-hour finale that wrapped up several long running story lines. 279 episodes, the "Big Bang Theory" is the longest running multi-camera series in television history. Fans took to social media to praise the ending that wrapped things up nicely and did not kill anyone off.
(LAUGHTER)
BRIGGS: The same probably cannot be said for another highly anticipated series finale.
The final episode of "Game of Thrones" airs Sunday night on HBO. The eighth and final season of the mega-hit series has been a ratings bonanza, though fans have been mixed on this season itself. Last week's penultimate episode set another record of more than 18 million viewers tuning in for the final battle. So who will end up on the Iron Throne. I know you probably have some theories, Christine.
ROMANS: I have some theories that I'm keeping to myself, and I will not be able to watch it on Sunday night because we get up so early.
BRIGGS: Yes.
ROMANS: So Monday is going to have to be a spoiler-free morning, everyone. You know, just keep it to yourselves for a little bit until everyone can watch it.
BRIGGS: I recommend staying off Twitter.
ROMANS: I know.
BRIGGS: Because it will dominate social media come Monday morning.
ROMANS: I know. All right. Photos of Iranian ships carrying missiles in the Persian Gulf raised tensions between the U.S. and Iran but are both countries misreading their own intelligence? A live report inside Tehran next.
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