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Early Start with John Berman and Zoraida Sambolin
U.S. Claims To Have Images Showing Iranian Freighters They Believe Are Carrying Missiles; Barr: Russia Probe Explanations "Don't Hang Together"; Rep. Adam Schiff Ready To Take 'Enforcement Action'; Pres. Trump Unveils His Immigration Plan; Trump Reveals Income Of At Least $434 Million In 2018; Walmart To Raise Prices Because of Tariffs; Mayor Pete Buttigieg On Military Service; 'Adversity Score' Added To SAT Exam. Aired 5-5:30a ET
Aired May 17, 2019 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[05:00:00]
DAVE BRIGGS, CNN ANCHOR: All right. Early Start continues right now with the latest out of the Middle East.
TEXT: Coming Up: Missiles In The Gulf?
CHRISTINE ROMANS, CNN ANCHOR AND CORRESPONDENT: CNN with new information on what the U.S. believes to be missiles on Iranian freighters in the Persian Gulf.
TEXT: Coming Up: Costly Tariffs
BRIGGS (VOICE-OVER): Walmart now says it will raise prices on some items because of President Trump's tariffs on China.
TEXT: Coming Up: Fighter Jet Crash
UNKNOWN MALE: That's a military airplane in our building.
ROMANS (VOICE-OVER): A fighter jet comes crashing through the roof of a California warehouse after the pilot ejects.
TEXT: Coming Up: Big Changes
BRIGGS (VOICE-OVER): And, big changes are coming to the SATs. New scores for students that have little to do with academics.
BRIGGS: Good morning everyone and welcome to Early Start. I'm Dave Briggs.
ROMANS: And, I'm Christine Romans. It is Friday May 17th. It is 5:00 a.m. in the east. It's 1:30 p.m. in Tehran. Let's begin there. 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 decks removed to carry missiles instead. CNN has not reviewed the intelligence supporting the U.S. assessment and the government has not provided any proof the ships are carrying missiles or other munitions. UNKNOWN (VOICE-OVER): 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, underscored at a brief White House photo op yesterday.
(BEGIN VIDEO CLIP)
REPORTER: Mr. President, are we going to war with Iran?
DONALD TRUMP, UNITED STATES PRESIDENT: I hope not.
BRIGGS (VOICE-OVER): The president apparently searching for a diplomatic way out of this mounting crisis. But, are Iranian leaders doing the same? Senior International Correspondent, Fred Pleitgen, live for us in Tehran. Fred interesting reporting from the "Wall Street Journal" suggests the U.S. and Iran were misreading one another, just further complicating this confrontation.
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FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes. Good morning, Dave. And, misreading each other possibly continuing to misread one another with both sides apparently thinking that the other might be trying to start offensive operations and both sides apparently thinking that they are the ones who are on the defensive in all of this
Of course, a lot of potential for miscalculation in an area, especially there in the Persian Gulf where the U.S. and Iranian forces are always in very close proximity, and continue to be so, and in the wider region as well. Quite interesting developments overnight. Iran's foreign minister saying once again that at this point in time there are not going to be any negotiations with the Trump administration.
But, essentially, what the Iranians are saying is that they want the U.S. to take away some of the punishing sanctions that the Trump administration has put on Iran. The Iranians want to be able to sell their oil on international markets. The Iranians want companies, for instance from Europe, to be able to invest here in Iran without having to fear the wrath of the United States, or American sanctions.
And in an ideal world, the Iranians are saying they want the U.S. to get back into the nuclear agreement. Of course, we know right now, current Trump White House, that's not necessarily something that is going to happen anytime soon, at least if you believe the officials in the Trump White House.
Now, as far as that new intelligence is concerned Dave, we haven't heard anything officially from the Iranians about those claims that that are being made. But, there was an interesting nugget that we didn't pick up for an interview from Iran's ambassador to the U.N. He said that Iran is not preparing for any sort of conflict, but Iran wants to be prepared in case the conflict starts. So, again, the Iranians are saying that they are the ones who are in a defensive posture, goes back to what we were saying at the beginning. A lot of potential for miscalculation here in this very volatile region.
BRIGGS: Boy, there sure is. Fred Pleitgen live for us, 1:33 p.m. there in Tehran. Thank you.
ROMANS: Glad to have him there for us. Attorney General Bill Barr says explanations he's been given for the origin of the Russia probe don't hang together, his words. 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.
(BEGIN VIDEO CLIP)
WILLIAM 'BILL' BARR, UNITED STATES ATTORNEY GENERAL: People have to find out what the government was doing during that period. If we're worried about foreign influence, for the very same reason we should be worried about whether government officials abused their power, and put their thump on the scale, And so, I'm not saying that happened, but I'm saying that we have to look at that.
ROMANS (VOICE-OVER): CNN reporting earlier this week that Barr has appointed a top federal prosecutor to look into the genesis of the Russian investigation. Barr has also enlisted the help of the CIA and the Director of National Intelligence.
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BRIGGS (VOICE-OVER): 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 influence.
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BRIGGS (VOICE-OVER): Flynn even gave Mueller a voicemail recording of the conversations. A federal judge's order the public release by May 31st portions of the Mueller report related to Flynn, sections that may still be redacted. The judge also ordered the release of transcripts of 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 full 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.
ROMANS (VOICE-OVER): Sciff 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 committee members a less redacted version of Robert Mueller's support. 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.
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BRIGGS (VOICE-OVER): President Trump announcing his broad plan to reform border security, and illegal 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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DONALD TRUMP, UNITED STATES PRESIDENT: Random selection is contrary to American values. Under these 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.
BRIGGS (VOICE-OVER): 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.
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ROMANS (VOICE-OVER): 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 to 10. All of the yes votes came from Republicans. Three of them women. Governor Mike Parson has already promised to sign the Bill with has no exceptions for rape or incest. The Bill is among several strict abortion laws passing recently in red 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 v. 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.
TEXT: TRUMP'S INCOME - 2018: at least $434M - $40.8M from Trump International Hotel, $22.7M from Mar-A-Lago Resort. 2017 reported income: at least $450M - At least $315M outstanding debt, $25.1M from Mar-A-Lago Resort.
BRIGGS (VOICE-OVER): The figure includes $40.8M million in revenue from the Trump International Hotel, located just blocks from the White House, and $22.7 million for his Mar-A-Lago Resort in Florida. Down from the $25.1 million he disclosed for 2017. Overall, the president's income appears to have decreased from the $450 million plus he reported 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 o'clock here on CNN.
ROMANS (VOICE-OVER): 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.
TEXT: "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." - Brett Biggs, Chief Financial Officer, Walmart.
ROMANS (VOICE-OVER): 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 the price increases.
But here's what Kevin Hassett, the Chairman of the President's Council of Economic Advisers. Here's what he said last night to Erin Burnett about Walmart's announcement.
(BEGIN VIDEO CLIP)
ERIN BURNETT, CNN NEWS ANCHOR: CFO of Walmart know what he's talking about? I mean, I don't think the CFO of Walmart is going to go out and say prices are going to go up unless he looked at it, and knew they were going to go up.
KEVIN HASSETT: CHAIRMAN, COUNCIL OF ECONOMIC ADVISERS: You go up and down the aisles, there's a million things. And, of course, there could be some products that don't have close substitutes, but a lot of them do. And then, in the end it's 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 president caused this but --
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BURNETT: You think he's got it wrong. OK. So, the president --
KEVIN HASSETT: CHAIRMAN, COUNCIL OF ECONOMIC ADVISERS: It's not in the data what he's saying. That's not in the aggregate data, for sure.
(END VIDEO CLIP)
ROMANS: Clearly, the White House strategy to downplay what will be a consumer effect of all of these tariffs . Walmart is not the only retailer warning that tariffs will hit customers. Macy's, Wednesday, said it will raise prices on some merchandise because of the trade war. But, 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., building a new plant in Fort Worth, Texas. That plant is going to open late 2020.
Stanley said the Fort Worth plant will employ 500 full-time workers. And, it's going to be a high-tech plant, right? With all kinds of cool technology robotics, a real upgrade from the lower tech plant that it had.
BRIGGS: It's not just the houses of jobs created --
ROMANS: Exactly.
BRIGGS: -- because of the automation
ROMANS: Exactly.
BRIGGS: -- but , hey --
ROMANS: Automation and fewer jobs, tariffs moving those to other countries. You know, Cambodia, Vietnam, and in this case, United States.
BRIGGS: All right. Ahead, some major changes to the SAT on the way that have more to do with where you live instead of what you study.
ROMANS: Plus the fighter jet that plunged through the roof of a California warehouse.
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[05:16:05]
ROMANS (VOICE-OVER): An F16 fighter jet crashing on takeoff from March Air Reserve Base near Riverside, California. The plane slammed through the roof of a nearby warehouse.
UNKNOWN MALE: That's a (expletive) airplane. That's a military airplane in our building.
ROMANS (VOICE-OVER): Air Force officials say a hydraulic failure led to the jet's crash. The pilot ejected before impact and had no major injuries. The CEO of the company in the warehouse says his employees are all safe thankfully, but Air Force Air Base officials say five people were injured on the ground, and we have reached out for details on their conditions.
BRIGGS: South Bend Mayor and Democratic Candidate, Pete Buttigieg, talking to CNN about his military service. He frequently makes reference to it on the campaign trail. And Jeff Zeleny asked him about coming out as gay after serving in Afghanistan and while still in uniform.
MAYOR PETE BUTTIGIEG, SOUTH BEND, IN, PRESIDENTIAL CANDIDATE: It was the reflecting I did while I was overseas. Talking to so many people who 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 want 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've 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.
BRIGGS: Fox's Steve Hilton asking President Trump what he thought of having a publicly gay rival for the White House. Listen.
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STEVE HILTON: HOST, THE NEXT REVOLUTION, FOX NEWS: Don't you think it's just great to see the fact that you've got a guy there on the stage with his husband, and it's normal, it's not a vaccine.
DONALD TRUMP, UNITED STATES PRESIDENT: I think it's absolutely fine. I do.
HILTON: Isn't it a sign of great progress in the country that that's just --
TRUMP: Yes. I think it's great. I think that's something that perhaps some people will have a problem with. I have no problem with it whatsoever. I think it's good.
(END VIDEO CLIP)
BRIGGS: Buttigieg is one of three Democrats running for president, who served in America's longest wars in Iraq and Afghanistan.
ROMANS: All right. Changes are coming to the SAT exam, and a diversity 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 SAT says it will be implementing -- here we go -- Environmental Context Dashboard, 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.
BRIGGS: Very interesting. All right. Ahead Steph Curry and the World Champion Warriors stealing Game 2 of the Western Conference Finals. They needed a huge comeback to do it. Andy Scholes has that story in the "Bleacher Report" live from Bethpage Black, next.
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[15:24:00] BRIGGS: Tiger Woods' bid for back-to-back majors not looking so great after one round in the PGA Championship. Andy Scholes is live at Bethpage Black with more in the "Bleacher Report". Good morning my friend.
ANDY SCHOLES, CNN SPORTS ANCHOR: Good morning David. Tiger Woods nine shots back in the lead here at the PGA Championship thanks to the reigning champ Brooks Koepka. You know, these two guys are playing together in Rounds 1 and 2. And, my colleague, Don Riddell, actually asked Koepka earlier in the week if he was intimidated at all playing with Tiger in his group, and Koepka said, why would I be. It's not like we're fighting, and he's going to punch me in the teeth.
Koepka certainly looking fearless in Round 1. Yesterday, here at Bethpage Black, seven birdies, no bogeys. Koepka finished with a course record 63, and it could have been even better as he was really not in any trouble all day long. Koepka is looking to make history here this week on top of winning last year's PGA Championship. Koepka, two time reigning U.S. Open Champ, and no one has ever held back-to- back titles in two majors at the same time.
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BROOKS KOEPKA, U.S. OPEN CHAMPION: I won this last year. You know, I'm playing good.
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You know, it was great that Tiger won Augusta, but I mean we're at a new leap now (ph) that was one of the best rounds I've played probably as a professional.
You know obviously it's never been -- I mean it's never been this confident (ph). I think, you know, I'm still learning -- understanding my game. And I've figured it out.
SCHOLES: All right, Tiger meanwhile is going to have to have a really good day if he hopes to get in to contention here at Bethpage Black. You know, I followed Tiger around yesterday. This course here, it's like a roller coaster with how hilly it is, and that's pretty much how Tiger's round was yesterday it was like a roller coaster.
He double bogeyed two holes on his front nine, he would battle (ph) back to get under par after an eagle on four but then he just struggled to end his round -- finished two over par for the day.
TIGER WOODS, 4-TIME PGA CHAMPIONSHIP WINNER: It wasn't as clean as I'd like to have it, for sure. Didn't get off to a very good start, but I fought my way back around there and unfortunately I just didn't keep it together at the end.
SCHOLES: All right, the Western Conference Finals also known as the Curry Sibling Rivalry Series continuing last night, mom and dad still rocking those combo jerseys of their sons Steph and Seth.
The Blazers had a 17 point lead in the third quarter, but that's when Steph got red hot, he would lead the Warriors all the way back, finish with 37 points in the game. About a minute to go, his little brother Seth hits a huge three to put the Blazers up by one. Warriors would though regain the lead in the closing second.
Andre Iguodala is going to steal the ball from Damian Lillard to seal the victory -- Warriors win 114, 111 to take a 2-0 lead in this series.
All right, back here in New York today's second round at the PGA Championships -- very important, Dave. In the last 60 years only one guy has come from outside the top 25 after 36 holes to win this tournament. And Tiger Woods right now tied for 51st, so he's got a lot of work to do. It's all not going to matter if Brooks Koepka plays like he did yesterday and shoots low again, because he could run away with this tournament.
BRIGGS: And he's so poised -- he's won major championships before. Don't looks for Brooks Koepka to fold. Also, congrats to the Boston Bruins back in the Stanley Cup Final. Good for the folks in Boston, they don't get a whole lot of taste of championship success.
Andy Scholes, good to see you my friend.
SCHOLES: All right.
BRIGGS: Enjoy Friday at Bethpage. Romans?
ROMANS: All right, thanks Dave.
Photos of Iranian ships carrying missiles in the Persian Gulf raising some tensions between Iran and the U.S., but both countries are they misreading (ph) their own intelligence -- we've got a live report inside Tehran next.
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