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British Prime Minister Theresa May To Resign On June 7; President Trump Orders U.S. Intel Agencies To Assist A.G. William Barr; President Trump And House Speaker Nancy Pelosi Spar. Aired 5:30-6a ET
Aired May 24, 2019 - 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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[05:31:18] (BEGIN VIDEO CLIP)
THERESA MAY, PRIME MINISTER OF THE UNITED KINGDOM: It is and will always remain a matter of deep regret to me that I have not been able to deliver Brexit.
(BEGIN VIDEO CLIP)
CHRISTINE ROMANS, CNN ANCHOR: Theresa May will resign her post in two weeks. How to get to Brexit very much in flux in the U.K.
DAVE BRIGGS, CNN ANCHOR: The attorney general can declassify intel from the Russia probe on new orders from the president.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D-CA): I wish that his family or his administration or his staff would have an intervention.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I'm an extremely stable genius -- OK.
(END VIDEO CLIP)
ROMANS: Hostilities reach a new high between the president and the House speaker.
BRIGGS: And clean-up just getting underway from violent tornadoes in the Midwest. Record heat in store for some areas this holiday weekend.
Welcome back to EARLY START. I'm Dave Briggs.
Ladies, do you battle with the men in your office over the thermostat?
ROMANS: Yes, the thermostat wars.
BRIGGS: Let us know @EarlyStart with the hashtag.
ROMANS: American offices are built for a typical guy -- 1965 formula. The ladies are at work now.
BRIGGS: Suck it up.
ROMANS: Yes, it needs to get warmer. You suck it up. I'm not going to suck it up.
I'm not going to just wear a sweater. You take your jacket off.
I'm Christine Romans.
BRIGGS: Let's do the news.
ROMANS: It is 32 minutes past the hour.
BRIGGS: Breaking news this morning. Moments ago, British Prime Minister Theresa May announced she will step down. She's been under intense pressure since her final Brexit deal was rejected.
CNN's Phil Black live at 10 Downing Street in London with the breaking details. Phil, good morning.
PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Good morning, Dave.
Yes, we witnessed a historic moment here at Downing Street just a short time ago -- the British prime minister announcing her intention to leave office.
Theresa May says she will resign as leader of the Conservative Party on June the seventh. That, then, allows the prime minister -- her party to move forward with a contest to select a new leader. She'll remain prime minister during that time, possibly around six weeks or so, eventually handing over to the winner of that internal party process.
But this is all about Brexit and Theresa May spoke about that here today. She said she gave it everything she possibly could to deliver on the result of the referendum that said Britain should leave the European Union, but ultimately, she failed.
Take a listen now to the prime minister speaking here just a short time ago.
(BEGIN VIDEO CLIP)
MAY: It is and will always remain a matter of deep regret to me that I have not been able to deliver Brexit.
(END VIDEO CLIP)
BLACK: So what you heard there was the prime minister in control, but as her speech continued she became increasingly emotional. At the very end, as she was speaking of her time in prime minister as the greatest honor of her life, she really did break down before turning away and walking back into the famous doors of 10 Downing Street.
The fact that she is prime minister and leader of the Conservative Party until June the seventh means that she will remain the leader of the government, without question, during that first week of June when Britain will be hosting President Donald Trump on a state visit here to the United Kingdom.
BRIGGS: Phil, she shared the words from her father, "Compromise is not a dirty word. Life depends on compromise." Any sense of a name that Parliament could compromise on as her replacement?
BLACK: Well, it remains to be seen. It's expected to be a pretty tightly-fought contest within her party to try and -- to try and choose the replacement.
The leading candidate is a man named Boris Johnson, a former foreign secretary here who resigned over the prime minister's handling of Brexit. His popularity within the party is said to be well beyond the many other contenders.
[05:35:00] But it will be whittled down over a process of votes held among members of Parliament before being put out to the broader Conservative Party membership.
But whoever wins -- you're touching on an important there Dave, and that is whoever is the next prime minister will have to deal with the same problems when it comes to Brexit -- the same divisions within Parliament, the same minority government status, the same inability to try and find a solution to the whole Brexit mess -- Dave.
BRIGGS: Yes, the dynamics remain the same. Brexit is a complete mess.
Phil Black, great reporting live from 10 Downing Street this morning. Thank you, sir.
ROMANS: All right. Back here, sensitive intelligence can be declassified thanks to an order by President Trump. He is ordering intel agencies to cooperate with the attorney general's review of the origins of the Russia investigation.
BRIGGS: The move gives Barr authority to declassify sensitive material as he sees fit and could serve as a prelude to a larger declassification effort the president has been floating since last fall.
The attorney general suggested during a congressional hearing last month that, quote, "spying did occur." That's an accusation President Trump has leveled repeatedly but current and former FBI officials have denied, including Chris Wray, the director of the FBI.
House intel chairman Adam Schiff says Trump and Barr are "conspiring to weaponized law enforcement against their political enemies," adding, "The cover-up has entered a new and dangerous phase. This is un-American."
ROMANS: And then this. A doctored video of Nancy Pelosi is making the rounds on the Internet with millions of views now. It has been slowed down to make the House speaker sound drunk during an appearance earlier this week.
A spokesman for Pelosi says the speaker is not going to comment on, quote, "sexist trash" -- in itself, a comment.
A carefully-edited mash-up of Pelosi, making her appear awkward and stammering, also appeared on "FOX BUSINESS."
At least one user with a few followers, @realDonaldTrump, shared it.
U.S. intelligence has warned video manipulation may be part of disinformation campaigns targeting American voters.
BRIGGS: Just YouTube "Anonymous" if you have some moments.
Hostilities are at an all-time high between the House speaker and the president and it is getting personal.
Pelosi declaring the White House is just crying out for impeachment. She says Democrats will hold back until there is no other option. And she's questioning the president's stability.
(BEGIN VIDEO CLIP)
PELOSI: I wish that his family or his administration or his staff would have an intervention for the good of the country. This is not behavior that is -- rises to the dignity of the office of President of the United States.
REPORTER: Your prayer comments almost suggest you're concerned about his well-being.
PELOSI: I am.
(END VIDEO CLIP)
ROMANS: A source close to the White House tells CNN Pelosi hasn't gotten under Trump's skin but she has his attention.
That same source maintains Mr. Trump was calm in his brief meeting with Pelosi and House Democrats. Remember, on Wednesday, where they were supposed to talk infrastructure and he lectured for three minutes and left the room, despite her claims that that was a temper tantrum?
Instead of proving the speaker wrong, Trump vented.
(BEGIN VIDEO CLIP)
TRUMP: It was sad when I watched Nancy all moving -- the movement and the hands and the craziness -- and I watched -- that's, by the way, a person that's got some problems.
I'm an extremely stable genius -- OK.
(END VIDEO CLIP)
ROMANS: Pelosi responding in a tweet, "When the 'extremely stable genius' starts acting more presidential, I'll be happy to work with him on infrastructure, trade, and other issues."
And a reminder. You know, the president said he's not going to work with Democrats until they quit their investigations. Until they --
BRIGGS: That is correct.
ROMANS: -- quit their investigations.
BRIGGS: What an astounding day at the nation's capital.
But let's go live there and bring in CNN reporter Michael Warren, another extremely stable genius. And I say that will all respect to you, Michael Warren.
Let's flip back quickly to our lead story before we get back into the mud between Pelosi and Trump, and talk about investigating the investigators.
So, as Christine just mentioned, the president has said he will not work with Democrats until they stop investigating him. He said the Russia investigation was a witch hunt that hurt the country and the Dems want a do-over.
How, then, do you make that argument and in the same breath say we need to investigate the investigators?
MICHAEL WARREN, CNN REPORTER: Look, this is part of the president's sort of legal and really, P.R. strategy, which is to be aggressive, fight back. He can say now the Mueller report did not conclude that there was any collusion. Now, the real story is -- the real sort of conspiracy was against me.
And I think that he's got an attorney general who is sort of ideologically aligned to what to look into some of this surveillance.
But I do think that there's been -- we already sort of crossed a Rubicon last year. Remember, Dave, when the Devin Nunes report -- the House Republican on Intelligence released a FISA warrant application that a lot of folks in the Intelligence Community on both sides of the aisle said that was a big deal.
[05:40:06] And I think what you're seeing here with the president's directive to declassify more documents that he doesn't seem to have any problem declassifying this thing -- these sorts of things if it's going to help him politically.
BRIGGS: And to put a bow on this, the A.G., while he appears to be the president's defense attorney at this point, the inspector general, Michael Horowitz, is already investigating that. Someone that both parties actually agree is an independent source and will rule on this.
But, anyway, so long here.
ROMANS: So let's talk -- let's talk about this extraordinary unveiling of a farmer bailout yesterday that the president was surrounded by ranchers and farmers and his own staff. And he went around the room for verification that, in fact, he did not
have a temper tantrum as Nancy Pelosi had alleged on Wednesday when he stormed out, by some accounts, of what was supposed to be an infrastructure meeting.
I just want to play this moment because to me, to hear the president looking for affirmation on camera, it was remarkable.
(BEGIN VIDEO CLIP)
TRUMP: Kellyanne, what was my temperament yesterday in the meeting?
KELLYANNE CONWAY, COUNSELOR TO PRESIDENT DONALD TRUMP: Very calm. No temper tantrum.
TRUMP: What was my attitude when I walked in? Did I ever scream?
MERCEDES SCHLAPP, WHITE HOUSE DIRECTOR OF STRATEGIC COMMUNICATIONS: No. You were very calm and you were very direct.
TRUMP: What was my attitude yesterday at the meeting?
LARRY KUDLOW, DIRECTOR, NATIONAL ECONOMIC COUNCIL: Mercy's right, Kellyanne's right. You were very calm.
(END VIDEO CLIP)
ROMANS: A White House source telling us that no, Nancy Pelosi isn't under the president's skin but she's got his attention. That sounds like Nancy Pelosi is under the president's skin to me.
WARREN: Yes, I think so. I think the proof is in the pudding there with that video.
Look, this is a -- one of these political fights that the president usually wins. He's not -- he doesn't seem to be winning this one --
ROMANS: No.
WARREN: -- at the very -- at the very best.
For him, it seems to be coming to draw they're both getting into -- he and the speaker -- these sort of personal attacks. She keeps insisting that he needs an intervention.
I think that does get under his skin. That is why he responds as he did to Rex Tillerson as well, this week, by insulting the speaker's intelligence.
And I think that this fight here really does kind of benefit both sides short-term. The president really does believe that impeachment is good politics for him because the numbers really aren't there. He thinks this is something that he can help drag the Democrats down.
And, Speaker Pelosi doesn't really want to talk about impeachment either. She's got a loud group of people with her caucus who want it. There are a few more Democrats who are saying they want to look into it now.
But she understands the politics of this as well, so getting into a public tiff with the president is maybe a better way to show that she's standing up to him.
ROMANS: Yes.
WARREN: And, at the moment, she seems to be getting the better of him.
ROMANS: Well, and that's the win that she -- I mean, David Chalian was making this point -- our David Chalian, last night, that she gets the win on that front because it relieves him of the pressure of her from the pro-impeachment folks around her. Now she is standing up to the president publicly and that takes a little bit of the heat off, he says.
BRIGGS: I don't know that anyone wins this mud wrestling match. The American people just flat-out lose. That we can agree on.
Michael Warren, good to see you, my friend.
ROMANS: Nice to see you.
BRIGGS: Enjoy the holiday weekend.
ROMANS: All right.
We showed you that event yesterday where the president was unveiling that bailout for American farmers. He plans that bailout to help American farmers hurt by his own trade policies -- the war with China. He promised $16 billion in aid and he said this.
(BEGIN VIDEO CLIP)
TRUMP: Because it all comes from China. We'll be taking in, over a period of time, hundreds of billions of dollars in tariffs and charges to China and our farmers will be greatly helped.
(END VIDEO CLIP)
ROMANS: Fact check -- China is not paying for it. It's not a charge from China that will go to American farmers just like Mexico is not paying for the president's border wall. Trump does not have a magic bank account with tariff revenue in it that he can write a check from. It just doesn't work like that.
The program that the USDA wants to use is a Depression-era emergency facility meant for disaster relief -- economic disaster. Essentially, confirming the president's trade war is an economic disaster for American farmers. Farmers will not even remotely be made whole by it.
The National Corn Growers Association said the last bailout amounted to about a penny a bushel for corn.
Farmers don't want bailouts, they want access to global markets. And they're not the only ones paying the price of tariffs.
The New York Fed reports the latest increase in tariffs on China, up to 25 percent, is costing the average American household $831 a year.
Now, the president here is picking winners and losers inside the American economy. He's essentially affecting a transfer of wealth from consumers who will ultimately pay the tariffs to American farmers.
And look, farmers need the relief. There is no question about it.
BRIGGS: Yes.
ROMANS: They need every penny of that $16 billion. But farmers will tell you a) it's not enough. It probably won't prevent bankruptcies that we've been seeing. And they need some clarity much more quickly about what their markets are going to look like in the next one or two or three years.
[05:45:10] BRIGGS: OK, we'll turn to the weather now. More violent storms expected today in the Midwest as the full scope of tornado damage becomes clear in Missouri. The National Weather Service says the tornado in Jefferson City packed 160-mile-an-hour winds.
Non-essential state workers in the Jefferson City area are being told to stay home.
The tornado tossed cars around like toys at this dealership owned by the same family for more than 80 years.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's really no words. I mean, I just sit here and find myself just staring at it. I definitely shed a few tears today -- I really have.
(END VIDEO CLIP)
ROMANS: Meantime, relief in Oklahoma. A dam still holding even after two loose barges slammed into it. Those barges sank.
And there's more severe weather on the way for the Midwest and record heat for the Southeast for the holiday weekend.
BRIGGS: Stay safe.
ROMANS: All right. Heading on a road trip this Memorial Day? You're going to be paying a little bit more for gas. "CNN Business" has the details, next.
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[05:50:30] BRIGGS: Just ahead of Memorial Day barbecues, 62,000 pounds of beef are being recalled because of E. coli concerns. The Department of Agriculture says the meat was packaged at the Aurora Packing Company in Illinois on April 19th before it was shipped nationwide.
The recall includes more than 40 products, mainly cuts of steak. You'll see the establishment number 788 inside the USDA inspection mark. For more, go to cnn.com.
ROMANS: All right, let's get a check on "CNN Business" this Friday morning.
Taking a looking at global markets you see some recovery in European markets. On Wall Street, you see a little bit of a bounce back here after what was a pretty ugly day yesterday because Wall Street finally realizing that the Trump tariff regime may not be temporary.
The Dow fell 286 points as investors brace for a long trade war. The S&P 500 down 1.2 percent. The Nasdaq down 1.6 percent.
The sinking feeling that tariffs are here to stay has taken the Dow, this month, down 3.5 percent, the S&P about the same, and the Nasdaq worse, down more than five percent. Tech stocks and industrials with exposure to China faring the worst.
Trade war fears crushed U.S. oil prices, which fell six percent to a 10-week low. That's oil's worst day since Christmas Eve. That's telling you that there are concerns about global growth.
It is the kickoff to the summer driving season and gas prices, though, are still high. The national average is $2.84 a gallon. That's significantly more expensive than every other Memorial Day since 2014.
AAA estimates a record 37.6 million people will be on the roads in the U.S. this weekend. Why? Well, the economy is strong and that is increasing demand for gasoline.
With unemployment near a 50-year low, more people are commuting and more people have money in their pocket to take vacations.
We'll be right back.
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[05:56:13] BRIGGS: Boeing needs more time to provide the FAA with information it needs before its 737 MAX jets can be recertified to fly. The FAA has been working with a beta version of the software that could be linked to two deadly crashes.
The agency's actor -- acting administration acknowledged his team had questions when Boeing announced a software fix last week.
(BEGIN VIDEO CLIP)
DANIEL ELWELL, ACTING ADMINISTRATOR, FEDERAL AVIATION ADMINISTRATION: Boeing gives us information. We review it. We give it back with more things we need or when they don't get it exactly right.
And we're talking about hundreds of pages of technical data on a software update that they're doing. It's very normal for there to be a back-and-forth.
(END VIDEO CLIP)
BRIGGS: Elwell also said he had not seen anything that suggests the FAA should have done something differently in certifying the MAX jets. He said the agency will be open to any recommendations.
A $44 million settlement in a civil case stemming from alleged sexual abuse by Harvey Weinstein. The New York Attorney General's Office filed suit last year accusing the Weinstein brothers and their company of, quote, "egregious violations of civil rights, human rights, and business laws."
Under the deal, some $30 million will go to alleged victims, creditors, and former Weinstein company employees. It will have no effect on Weinstein's criminal case.
An Amber Alert for a 23-month-old abducted following a traffic stop in Tennessee. Sheriff's deputies pulled over a car driven by a woman with two passengers, a male friend and the woman's 23-month-old granddaughter, Octavia Ofia (ph) Shaw.
While officers questioned the driver, they asked the man, identified as Matias Martinez, to stand under a tree with the child. Soon after, they realized Martinez had taken off with the child.
Health officials in five states considering imposing air travel restrictions to limit the spread of the measles. The CDC says concern centered on eight people. A spokeswoman says the conversations never led to a "do not board" list and those eight people voluntarily decided not to travel.
The measles outbreak is affecting decisions by summer camps, especially in hard-hit New York State. One director is warning he will turn away campers if their parents cite religious or philosophical objections to the vaccine.
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ALEX TREBEK, HOST, "JEOPARDY!": And you can breathe a sigh of relief. Nate made you work for it -- $52,108 today and now, a 26-day total of $1,991,135.
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BRIGGS: This one was really close. If James Holzhauer had gotten the final answer wrong he would have lost. But he managed to escape with a win, the 26th straight on his remarkable "JEOPARDY!" run. He goes for $2 million tonight.
And speaking of big money on the line -- in the Lotto, nearly $700 million is up for grabs in the Mega Millions and Powerball jackpots. If you win, count me in.
Thanks for joining us. I'm Dave Briggs. Here's "NEW DAY."
ANNOUNCER: This is CNN breaking news.
JOHN BERMAN, CNN ANCHOR: Welcome to our viewers in the United States and all around the world. This is NEW DAY. It's Friday, May 24th, 6:00 here in New York.
Major breaking news from the United Kingdom. Moments ago, the British prime minister, Theresa May, announced she is resigning and will begin the distinctly British process of stepping down in just two weeks. May has faced intense pressure over her latest Brexit plan and failure to get any of her withdrawal agreements passed by the British Parliament.
ALISYN CAMEROTA, CNN ANCHOR: Many people saw this coming for the past few months. The shake-up --
BERMAN: You've been telling me every day.
CAMEROTA: Well -- I mean, I think that when you watch some of those Parliament meetings it seems as though a) she wants out --
BERMAN: Yes.
CAMEROTA: -- and -- as though she wouldn't be able to hang on much longer. The British government, as you know, is in a bit of chaos.
And this comes just days before President Trump.
END
