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Early Start with John Berman and Zoraida Sambolin
Big Winter Storm Bearing Down on East Coast; "National Review" Slams Trump; North Korea Holding American Student. Aired 4:30-5a ET
Aired January 22, 2016 - 04:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[04:30:22] ALISON KOSIK, CNN ANCHOR: The East coast set to be crippled by a monster blizzard, 75 million people in its path. Thousands of flights already canceled. We are tracking when and where it will hit.
CHRISTINE ROMANS, CNN ANCHOR: Donald Trump skewered by conservatives. A new edition of "The National Review" making its scathing case against the Republican frontrunner. How the Trump and the RNC now are fighting back. That's ahead.
Welcome back to EARLY START. I'm Christine Romans.
KOSIK: Good morning. I'm Alison Kosik. It's 30 minutes past the hour.
Up first this morning, the biggest winter storm of the season is bearing down on the East Coast. Here we go, 75 million people in the path of the storm that's shaping up to be one for the record books. States of emergency declared in Virginia, Maryland, Pennsylvania, North Carolina, Georgia and Tennessee. Blizzard conditions expected in Washington where more than two feet of snow could fall.
Major cities including New York and Philadelphia could also get slammed. More than 4,500 flights canceled in the U.S. today and tomorrow.
Derek Van Dam is tracking the storm. We're going to get to him in a moment. But, first, let's begin with CNN's Rene Marsh with the mess at the airports up and down the East Coast -- Rene.
(BEGIN VIDEOTAPE)
RENE MARSH, CNN AVIATION AND GOVERNMENT REGULATION CORRESPONDENT: The potential for more than two feet of snow is threatening to shutdown operations at major airports in the Northeast. We have already seen airlines cancel thousands of flights. And we expect today throughout the weekend, we will continue to see those cancellations build.
What a lot of airlines did ahead of the storm is offer passengers the opportunity to change their flight plans free of charge. But at this point, if your reservation has not been changed yet, your chances of getting out before the storm, slim to none. There is no clarity at this point when things will be back up and running smoothly -- normal operations for these airlines.
Back to you.
(END VIDEOTAPE)
ROMANS: Rene, thank you for that.
So, the big question is who is getting how much snow and when? Let's get to meteorologist Derek Van Dam.
Hey, Derek.
DEREK VAN DAM, AMS METEOROLOGIST: Good morning, Alison and Christine.
Well, this is new to viewers and new to you at home as well. We have now extended the blizzard warning, the National Weather Service, into New York City and Philadelphia. Remember, blizzard conditions not defined by snowfall totals, but by rather 35-mile-an-hour winds for a sustained period of three hours or longer, dropping visibilities below a quarter of a mile.
But nonetheless, we are still certain that a major winter storm is bearing down on Mid-Atlantic States. Still some uncertainty with computer models. One thing is for sure as we see the bull's-eye, time and time again, computer model after model setting up over the greater Washington, D.C. area. Again, just whether or not the northern periphery will reach the New York City region, something we are going to monitor very closely.
Here is a look at the rest of the weather watches in place. Winter storms warnings extend all the way to Nashville and Little Rock, Arkansas, where Central Arkansas has also received 2.5 inches of snow from the back side of the storm. It's not only a snowmaker, it's an icemaker.
Take a look at this, we have upwards of half to three quarters of an inch of ice possible across the Carolinas. Lesser as you travel further to the west in Kentucky and Tennessee. We are also coinciding the peak storm time around early Saturday morning with high tide. That is coinciding with the full moon. So, the potential of coastal beach erosion extends from long island all the way to the coast of Delaware.
Here is the storm system evolving over the next 24 to 36 hours, our major weather story will be our nor'easter. Please use social media, #CNNweather. Send us pictures of all the storm. Back to you.
ROMANS: All right, Derek. And be careful. Tweet us but be careful.
KOSIK: And have some fun when you are playing in the snow and sledding.
ROMANS: Thank you, Derek. Keep us posted on new changes in that blizzard.
KOSIK: Turning to politics. Breaking news, Donald Trump fixating on a target. He is now slamming the conservative magazine "The National Review." It comes ahead of the special issue of the magazine that's being released today, opposing Trump's presidential bid. And inside, it features an editorial labeling Trump as a threat to conservatives and including essays from 22 prominent conservatives opposing Trump's candidacy.
Some of the pieces are really scathing. Listen to this. Author and columnist Mona Charen says of Trump, "The man has demonstrated an emotional immaturity bordering on personality disorder."
Novelist and commentator, journalist as well, Mark Halperin, writes, "Trump has like a tapeworm invaded the schismatically weakened body of the Republican Party."
[04:35:03] Adding Trump has "hair like tinsel on a discarded Christmas tree." Ouch.
Trump speaking after a late night rally in Las Vegas, dismissing "The National Review" entirely.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: "The National Review" is a dying paper. Its circulation is way down. Not very many people reading anymore. I mean, people don't even think about "The National Review." So, I guess they want to get a little publicity. You know, that's a dying paper. It's pretty much -- I can say that it's pretty much a dead paper.
(END VIDEO CLIP)
KOSIK: And tonight, the publisher of "The National Review" saying the Republican committee has disinvited the magazine as a role from the February 25th debate here on CNN.
Jack Fowler says the RNC cited this special edition of the magazine as the reason for being disinvited. Fowler says "The National Review" expected the move, calling it a, quote, "small price to pay for speaking the truth about the Donald."
Meantime, ten days to the Iowa caucuses and Trump firming up his lead in the CNN poll. Thirty-seven percent of likely caucus-goers say they are behind Trump. Ted Cruz and Marco Rubio are the only ones in double digits.
However, a big caveat here, if you factor in the people who actually attended the caucus in 2012, Ted Cruz actually takes a narrow lead. But that lead is very much within the poll's margin of error.
CNN's Sara Murray with the latest from the campaign trail.
(BEGIN VIDEOTAPE)
SARA MURRAY, CNN POLITICAL REPORTER: Good morning.
Donald Trump took a break from the campaign trail in Iowa last night to rally crowds here in Las Vegas and launch a spate of new attacks against Ted Cruz. With just about a week to go until the Iowa caucuses, he said Cruz has missed his moment and his campaign is going down the toilet.
All this happening as more Republican leaders are distancing themselves from Ted Cruz. And Ted Cruz is trying to paint Donald Trump as the establishment candidate.
SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: There is a bunch of big money in this race. The Washington establishment right now, they are abandoning Marco Rubio and rushing to Donald Trump.
MURRAY: And Donald Trump seemed to be relishing in Ted Cruz's latest attack, even saying it's OK to be a little establishment.
TRUMP: There's a point at which let's get to be a little establishment. We got to get things done, folks, OK? There is total gridlock. Guys like Ted Cruz will never make a deal, because he's a strident guy, no, you cannot have that!
MURRAY: Now, Donald Trump isn't taking a long break from Iowa. He will be back on the trail there this weekend with three events and not much longer until the Iowa caucuses.
(END VIDEOTAPE)
ROMANS: All right. Sara Murray, thank you so much for that, Sara.
Meantime, Jeb Bush looking for a campaign boost from a familiar face, his mom. Barbara Bush filming an ad to air in New Hampshire, where Bush needs a strong showing to keep his campaign alive. Mrs. Bush tries to distinguish Jeb from other candidates, including presumably Donald Trump.
(BEGIN VIDEO CLIP)
BARBARA BUSH, JEB'S MOTHER: Jeb has real solutions rather than talking about how popular they are or how great they are. He's doing it because he sees a huge need and it's not being filled by anybody.
(END VIDEO CLIP)
ROMANS: A CNN poll showed Bush tied for third place in New Hampshire.
KOSIK: Marco Rubio taking his campaign to "The Tonight Show." He went back and forth with Fallon with footwear after his high heeled boots. Are they really high heeled? Christine, you said you actually saw them right?
ROMANS: They were on the campaign trail last week. All of the reporters are saying where did these boots come from? They were sort of a joke on the campaign trail.
(CROSSTALK)
ROMANS: I don't think they're high heeled. I think they have prominent heels.
KOSIK: They are fashionable. All right. It became a joke on the campaign trail.
Now, he says he is saving the boots for nights and weekends. As far as his campaign, Rubio also said for him, it is the White House or bust. He's not willing to be number two on the ticket.
(BEGIN VIDEO CLIP)
JIMMY FALLON, THE TONIGHT SHOW: So if you don't win the nomination, would you consider being vice president?
SEN. MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: No. That's not what I'm thinking about. I want to be like commissioner of the NFL, which is more powerful than president sometimes.
FALLON: You want to be commissioner of the NFL?
RUBIO: Yes. I mean, they have one now, I'm just saying that when the next one comes up, because -- I'm serious, that's a great job. You have a lot of power in that job. You can like suspend people.
FALLON: Yes, of course. But the president is, obviously --
RUBIO: No, that's my first choice.
FALLON: Yes. Second is -- I love that. You're a dreamer, man.
(END VIDEO CLIP)
ROMANS: Commissioner of the NFL I think makes a lot more money than the president of the United States. That's another advantage of that particular job.
On the Democratic side, a new poll paints a similarly divided picture in Iowa. Our latest CNN poll shows Bernie Sanders turning the tables on Hillary Clinton. He jumps to an eight-point lead after trailing by 18 points last month. But the numbers also show he needs to get new voters to the caucus or that lead could evaporate.
The numbers essentially flip when we asked previous caucus-goers who they support. People who participated in 2008 gave the edge back to Clinton. Again, worth noting all these numbers fall within the margin of error.
Clinton making her case to younger voters in Iowa.
[04:40:00] She is hoping a celebrity endorsement can help seal the deal. Singer Demi Lovato coming out to stump for the former secretary of state.
(BEGIN VIDEO CLIP)
DEMI LOVATO, SINGER: I'm voting for her because I truly believe that there is nobody more qualified to run this country -- our country, than our secretary of state, Hillary Clinton.
(CHEERS)
(END VIDEO CLIP)
ROMANS: Clinton and Sanders ready to make a push in Iowa, but neither is campaigning there today.
CNN senior Washington correspondent Jeff Zeleny has more.
(BEGIN VIDEOTAPE)
JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Hillary Clinton and Bernie Sanders are both campaigning in New Hampshire on Friday, starting a contentious ten-day race to the caucuses. There is a bit of a fight over who's the more establishment candidate.
Of course, Bernie Sanders supporters believe he is an outsider. He's running as an agent of change. But Hillary Clinton on Thursday told CNN's Wolf Blitzer, not so fast. Why should she be the anti- establishment candidate?
HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: He has been in Congress. He has been elected to office a lot longer than I have. I was in the Senate for eight wonderful years representing New York. He's been in the Congress for 25. And so, I will let your viewers make their own judgment.
ZELENY: But Secretary Clinton says she is a candidate of change. She, of course, would be the first woman president and has many policy ideas.
We see the contour lines of the campaign shaping up as they both are rallying voters on Friday before coming back to Iowa before the final week long stretch before the Iowa caucuses begins.
Back to you.
(END VIDEOTAPE)
KOSIK: OK. Jeff Zeleny, thanks for that.
And breaking this morning: an American student arrested in North Korea. That's according to state media. The student said to be from a university in Virginia. Pyongyang says the student was planning to carry out a hostile act against the regime. The U.S. embassy in Seoul is aware of the reports. We will have more information as it is available.
ROMANS: All right. Time for an early start on your money this Friday morning. Oh, relief. Friday relief. Will it follow through?
Dow futures are higher. It could be a second day of gains for stocks. European markets are up after comments from the European Central Bank President Mario Draghi. Asian market surging overnight, oil jumping back to $30 a barrel, back here in the U.S. After years of rising rents, rents are finally cooling.
Zillow says the national median rent price at the end of 2015 is $1,381. It is expected to rise to $1,396 over the next 12 months. Red hot rental markets remain like San Francisco, Denver, Portland, Oregon, will stay -- Portland, Oregon will stay expensive. Renters of those areas can expect to spend up to 40 percent of their incomes on housing.
For those looking to buy? Prices are rising. We're going to get a reading on home sales later this morning. But rising rents has been something that is a big complaint, especially of young people coming out of college. They are not really getting the big salaries yet, but rents are rising in the big cities.
KOSIK: All right. Emotional homecoming for two Americans freed from Iranian prison cells, as we wait to learn when the rest of the released Americans will come. That's next.
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[04:46:51] ROMANS: Two of the Americans freed in the prison swap with Iran now back on American soil. Saeed Abedini reunited with his family in Asheville, North Carolina. The pastor from Boise had spent more than three years in the Iranian prison. Also back home, Amir Hekmati, he landed in Michigan. He was accused of spying five years ago. He says he is happy to be back.
(BEGIN VIDEO CLIP)
AMIR HEKMATI, FREED IN PRISONER SWAP: Thank God for your support, everybody from the president and my family and every day Americans. I'm standing here healthy and tall and with my head held high.
(END VIDEO CLIP)
ROMANS: Just so strong. I can't believe how long they were gone.
Breaking in the last hour, Jason Rezaian, "The Washington Post" reporter, released by Iran, he is now back to the United States.
CNN's Phil Black is live in Landstuhl, Germany, where Rezaian had been staying since regaining his freedom -- Phil.
PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Yes, Christine, that's the good news this morning -- all three of those Americans have been here and being assessed physically a psychologically over the last week or so. They have all been found to be ready to return home at last.
And yes, the most recent, the latest, and the last, Jason Rezaian, "The Washington Post" journalist held since July of 2014, issued a statement in the last hour or so confirming that he and his family have departed here to return to the United States.
It says, this statement, that the plan for Jason is to relax, to watch movies, enjoy home cooked meals, watch some sports as well. He goes on -- I want to read you a direct quote from the statement now.
He says, "At some point, I will be ready to discuss my ordeal, but for now, I just want to express my profound appreciation for the tremendous support I have received. I am humbled by all I have learned about the efforts undertaken on my behalf."
Not long before the departure, "The Washington Post" released video of Jason surrounded by his family. This has been and is still a very happy time for them. In the statement released this morning, his mother said she is proud of how her son handled the ordeal of isolation and being held in Iran for that length of time. His wife, who also fought so hard for Jason's release said the last few days being together again reminded her why he is so special and from here, she is very excited about what she says is a new exciting chapter in their lives. So Jason's returning home.
As you mentioned Saeed Abedini, the video showed him being reunited with his mother on the tarmac and of course, the marine, Amir Hekmati. Great news all around. But at the doctors at this clinic have been telling us, returning home is the first process of reintegrating and coming to terms of what they have been through -- Christine.
ROMANS: And in the case of Amir Hekmati, he has been there so long. You wish them the best.
You know what is curious, Phil? That the United States prepared a plane for the seven people who were in the swap, people who were here in the United States, to send them back to Iran and none of them wanted to go back to Iran.
[04:50:08] BLACK: Yes, that's right. Apparently the plane was ready to go. We were told by a U.S. official.
But none wanted to accept the ride. Six of the seven were joint U.S. Iranian citizens. Clearly had some roots in the United States and unwilling to leave.
Remember, there was a fourth U.S. citizen released in Iran. Also had joint citizenship. He chose to remain in Iran. So, a mix of reactions in terms of how they responded to the initial freedom, if you like.
But, clearly, the Americans that came here to undergo this initial treatment, they have all done so very well. They are all very strong and clearly ready to go home and now continue the hard work that their recovery will be, Christine.
ROMANS: All right. Phil Black for us at Landstuhl, Germany -- thank you so much.
CNN is also taking you inside Tehran, to see whatever the Iranians think of the new sanctions relief and budding relationship with the U.S. That's coming up in just a few minutes.
KOSIK: The water crisis in Flint, Michigan, now claiming a political casualty. Susan Hedman, EPA director of the region that includes Flint has submitted her resignation. She allegedly shut down inquiries about water contamination in Flint, including from the city's former mayor.
Meantime, e-mails released by the Michigan governor reveal the state was concerned about flint's water infrastructure, but deflected blame to local officials. Incredible.
ROMANS: A legal victory for protesting public school teachers in Detroit. A judge rejecting their quest for a temporary restraining order to end the mass sickouts to force the schools to close in recent weeks. These teachers are protesting building conditions. They say these buildings present a health and safety hazard. Detroit public school officials will have another chance to make their case at a hearing on Monday.
KOSIK: Federal health officials reporting a sharp rise in unusual birth defect. The CDC says the number of cases of Gastroschisis. It involves internal organs being exposed through a hole in front of the body. It can be life-threatening but is fixable with surgery. This spike is especially high to babies born to African-American mothers under the age of 20. No specific cause has been pinpointed.
ROMANS: Interesting.
All right. We could see a rally in the stock market today, capping off a wild and terrible week, in some cases. One of America's favorite stocks likely won't be included. We're going to get an early start on your money next.
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[04:55:48] KOSIK: Welcome back.
Could decades of anger and frustration start to subside with the passage of the Iran nuclear deal? Every day Iranians hope so, looking for economic relief and place on the world stage.
CNN's Frederik Pleitgen is in Tehran with more on how people there view the progress -- Fred.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning from Tehran, Christine and Alison., where there is a great deal of optimism after the nuclear agreement. People here tell us they're absolutely thrilled that the deal has come through and frankly, many of them say, they also are happy this prisoner swap took place between the U.S. and Iran. They believe that that's one more obstacle that is out of the way for Iran to get back on the world stage.
Now, many of them believe that there is going to be a great deal of economic activity here very quickly. Iran, of course, wants to sell some 500,000 additional barrels of oil on the world market every day. And when you look at the flights that are coming in here to Tehran, they are absolutely packed with foreign investors looking to get in to what they believe will be an important emerging market.
People here believe that all this will happen very quickly, but so far, even though many of the sanctions nominally have been lifted, very little has actually happen. Still, pretty much impossible to pay electronically here in this country, so you still have to do everything by cash. And also, of course, a lot of these business deals that are going to happen, they simply take time to negotiate.
Now, at the same time, there are also the hard liners here in Iran. Many of them still remain very skeptical about the nuclear agreement. They're not sure it will hold.
And then, of course, you have some factions here who simply want to remain in a confrontive state with the United States -- Christine and Alison.
(END VIDEOTAPE)
ROMANS: All right. Fred Pleitgen, thank you for that.
It's Friday. Let's get an early start in your money. Dow futures higher. Big gains, yes, I said gains, in Europe, Tokyo enjoying a huge rally. That's a big one day move for Tokyo, folks, up 6 percent overnight. Those markets are now closed. Europe still trading.
Watching Starbucks this morning. Shares are down 4 percent in pre-market trade. Its fourth quarter was strong. Good sales of holiday gift cards, new offerings, and alcohol sales at some stores.
But Starbucks gave a weak outlook for this year, and blamed China. Growth in Asia was slow, due in part of China's slowing economy. Europe also a challenge, reportedly due to a decrease in tourism after the Paris attacks.
Shares of Starbucks up, almost 50 percent over the past year. It's held up OK this year. It has fallen a few dollars despite the broader market plunge. But at least right now, we are looking for a 4 percent drop this morning.
Petty Wall Street bankers. It's bonus time on Wall Street and this year's checks are shrinking. Goldman Sachs bonus pool dropped 12 percent in the fourth quarter. The average annual compensation in case you're wondering for a Goldman employee last year, more than $340,000. Morgan Stanley cut its bonus pool and U.S. Bancorp not paying out 100 percent of the money for bonuses based on its performance last year.
But workers at JPMorgan Chase have a different kind of perk there, weekends off. There's an initiative called pencils down. It starts this weekend. It encourages employees to put down their work on Saturdays or Sundays, unless, of course, a live deal -- this is for investment banker actually, unless there's a live deal on the works. This is according to "Wall Street Journal". It's designed to let workers recharge and prevent burnout and overworking. Those are the characteristics, of course, of the old Wall Street, some firms are trying to change that.
You've seen a few banks over the past couple of years who said, look, we want bankers to take four weekend day as off a month.
KOSIK: If they can.
ROMANS: Think about that for a second, would you want job where you might get half your weekend is?
But look, this is the kind of animal instincts of Wall Street. Some people are saying, if you take away that "eat what you kill" mentality, maybe you want have this --
KOSIK: It's interesting to see forced work-life balance, they're forcing it to them.
ROMANS: Yes, it's interesting.
KOSIK: We'll see if they heed the advice.
All right. EARLY START continues right now.
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KOSIK: Happening now: the East Coast bracing for a monster snowstorm, 75 million people in its path. A blizzard that could break records.
ROMANS: "The National Review" against Donald Trump. Noted conservatives banding together with scathing critiques of the Republican frontrunner. This morning, Trump is striking back.
