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Early Start with John Berman and Zoraida Sambolin
Donald Trump Boycotts Fox News' GOP Debate; Additional Democrat Presidential Debate Added Before New Hampshire Caucuses; CNN Money; Ground Under California Apartment is Crumbling; Danish Parliament Voting in Favor of Controversial Refugee Bill. Aired 4-4:30a ET
Aired January 27, 2016 - 04:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[04:00:17] BORIS SANCHEZ, CNN ANCHOR: Donald Trump goes to war with Fox News, boycotting the network's next GOP presidential candidate debate. The news channel now blasting the Republican front-runner.
CHRISTINE ROMANS, CNN ANCHOR: Will Hillary Clinton get another chance to take on Bernie Sanders face-to-face before the New Hampshire primary?
And road and new debate plan. But will Sanders agree to it?
SANCHEZ: And breaking overnight in Oregon, militia man shot dead after a traffic stop escalates into a shoot-out with the FBI.
Good morning and welcome to EARLY START. I'm Boris Sanchez.
ROMANS: And I'm Christine Romans. Nice to see you this morning Boris. Its Wednesday January 27th, it is 4:00 a.m. in the east.
Breaking news this morning, the Donald Trump campaign accused threatening the Fox News Anchor Megyn Kelly.
Less than week before the crucial Iowa caucus is Trump has pulled out of the Fox New Republican debate Thursday night accusing co-moderator Kelly a bias against him.
Fox New lashing back dramatically at Trump overnight with the statement that said capitulating to politician's ultimatums violates all journalistic standards. Fox News accusing campaign manager Cory Lewandowski of leveling threats at Kelly in a call with the Fox News executive. It says said, he says "that Megyn had a rough couple of days after that last debate and he would hate to have her go through that again." Fox said "We can't give in to terrorizations toward any of our employees."
The network promises to treat Trump fairly if he does attend the debate. But as of now here's the lineup Ted Cruz, Marco Rubio, Ben Carson, Chris Christie, Jeb Bush, John Kasich and that's on the main stage Rand Paul now.
CNN's Sara Murray has more from Iowa. SARA MURRAY, CNN POLITICS REPORTER: Good morning, Boris and Christine.
Donald Trump managed to Trump himself on the campaign trail in Iowa last night. The big news was supposed to be his pair of high-profile endorsements.
Arizona Sheriff Joe Arpaio and Evangelical leader Jerry Falwell Jr. But instead Trump said he's skipping the Fox News debate.
(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: Well Fox is playing games, yeah. A Fox is going to make a fortune. I told Fox she should give money to wounded warriors.
I'm not fan of Megyn Kelly. I think she's a third rate reporter. I think she frankly is not good in what she does. And I think they can do a lot better than Megyn Kelly. And so I'm going to be making a decision with Fox. But I probably won't bother doing the debate. I see they picked me as number one. Not only number one, number one by far, but probably I won't be doing the debate.
I'm going to have something else in Iowa. We'll do something while we raise money for the veterans and the wounded warriors. We're going to do something simultaneously with the debate. But most likely I'm not going to do the debate.
(END VIDEO CLIP)
MURRAY: Now the Trump campaign manager Corey Lewandowski took that a step further saying that Donald Trump definitely would not attend Thursday debate and even saying the campaign might hold a competing event in Iowa, possibly with the media partner.
Now the Republican National Committee tells that obviously they would like to see all of their candidates on stage. But said each candidate needs do what's best for them. And it looks like Ted Cruz is trying to do just that, challenging Donald Trump in a one-on-one debate, no moderator.
(BEGIN VIDEO CLIP)
TED CRUZ, (R) PRESIDENTIAL CANDIDATE: This race is a dead heat between Donald and me. We are effectively tied in the state of Iowa. If he's unwilling to stand on the debate stage with the other candidates, then I would like to invite Donald right now to engage in a one-on-one debate with me any time between now and the Iowa caucuses.
(END VIDEO CLIP)
MURRAY: So with the two top candidates in Iowa potentially defecting from that Thursday debate, it's still an open question who will be on that stage. Back to you Boris and Christine.
SANCHEZ: All right Sara Murray, thank you. Megyn Kelly spoke out overnight on her show highlighting Fox News Chairman Roger Ailes defensive her skill as a journalist and then giving her take on Trump's decision.
(BEGIN VIDEO CLIP)
MEGYN KELLY, FOX NEWS HOST: Trump is not used to not controlling things as the chief executive of a large organization. But the truth is he doesn't get to control the media. And while he's made his position clear about me after that first debate, Rogers Ailes made his position clear, too.
And, you know, when Trump started it up again this past Saturday and then resumed it again and again and again and again, he was told repeatedly, our debate team is settled. The debate will go on with or without Mr. Trump.
(END VIDEO CLIP)
ROMANS: Trump's rival is mocking his withdrawal overnight, Ted Cruz blasting out a tweet urging his followers to push Trump to accept his challenge for that mano y mano that one-on-one debate and putting a cartoon that pics Trump as Scrooge McDuck with the #DuckingDonald.
Jeb Bush retweeting his supporters sarcastic comment that "Trump can't handle tough questions for Megyn Kelly but he'll be able to handle Hillary Clinton. Ha ha ha."
[04:05:03] And Mike Huckabee who will be in the under card debate on Thursday, he offered to take Trump's place.
(BEGIN VIDEO CLIP)
MIKE HUCKABEE, (R) PRESIDENTIAL CANDIDATE: Let me make an offer tonight. I will take Donald Trump's podium on that stage Thursday night, generous as I am, I'll take that spot. I know you got a spot now. There's an opening, I'll be happy to take it.
He has so amazingly manipulated the media in a way that no one ever has, and I have to congratulate him for that.
And look, even right now, we're talking about him. We're not talking about the people of Iowa. We're not talking about the economy.
(END VIDEO CLIP)
ROMANS: Very good point. So far that Trump campaign has given no details about its plans for an alternative event supporting veterans.
SANCHEZ: It is surprising that Trump who loves being center stage is turning down an opportunity to do the ...
ROMANS: You know, and then some have been wondering is he tired, does he not want to do that again, he's done so many of these debates now, some of these events made. He just doesn't want to do that. He does very well with someone who's endorsing him on the stage or alone on the stage working the crowd. Maybe he just doesn't want do that kind of venue anymore, that kind of event anymore or maybe he just doesn't like Megyn Kelly.
SANCHEZ: That might be the case.
So on the Democratic side, it's an open question this morning whether Hillary Clinton and Bernie Sanders will face off in an unofficial previously unscheduled debate before the New Hampshire primary.
NBC News in New Hampshire, "The Union Leader" newspaper have announced the Democratic debate for February 4th.
Clinton and Martin O'Malley quickly accepted the invitation. Bernie Sanders though holding out so far after the Democratic National Committee threw cold water on the plans with a statement saying, "We have no plans to sanction any further debates before the upcoming first in the nation caucuses and primary, but will reconvene with our campaigns after those two contests to review or schedule."
A spokesman told the Union Leader that Sanders doesn't want to jeopardize his spot in the future. Official debates by participating in an unsanctioned event.
Meantime on the campaign trail, Clinton took a subtle swipe at Sanders implying that while she lays out concrete plan, Sanders offers only slogans and rhetoric.
Senior Political Correspondent Brianna Keilar has more from Iowa. Brianna?
BRIANNA KEILAR, CNN SENIOR POLITICAL CORRESPONDENT: Good morning Christine and Boris. Bernie Sanders and Hillary Clinton campaigning seriously in the final handful of days before the Iowa caucus.
Clinton emphasizing her experience, Bernie Sanders emphasizing a political revolution and questioning Clinton's judgment.
(BEGIN VIDEO CLIP)
HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: People kind of make fun of me because I do put my plans on my website and I do tell you how much it will cost because I do want you to know that I'm not just shouting slogans, I'm not just engaging in rhetoric. I've thought this through, I have a plan, I want you to understand it because I don't think you can get what we need to get done in this election or in the presidency unless you level with people. You tell them what you can do and you let them, then respond to it.
(END VIDEO CLIP)
KEILAR: After one campaign event in Iowa this morning, Hillary Clinton will head to Philadelphia where she will fund race alongside Jon Bon Jovi. But Bill Clinton will pick up the baton, he will be campaigning for her in Mason City Iowa.
Bernie Sanders will also be in Mason City with the little help from Susan Sarandon today. Christine and Boris?
ROMANS: All right Brianna for us this morning, thank you Brianna.
This morning Bernie Sanders got some face time with the president after days that he'd been praised on Hillary Clinton.
President Obama will meet with her rival on the Oval Office. The White House says the meeting will be private and informal without a set agenda. It's their first substantive discussion since Sanders polling began to serge in early voting states, the president and Secretary Clinton's most recent meeting with a private lunch in at the White House that was last month.
SANCHEZ: We have some breaking news now on that armed group that took over building at a federal wildlife refuge in Oregon. The group's leader Ammon Bundy and several of his followers were arrested last night during a traffic stop.
Shots were fired during the confrontation killing this rancher. He's identified as 55-year-old Robert LaVoy Finnicum.
The FBI also says another one of the occupiers has surrendered to police in Arizona that raises the total number in custody to eight. Ammon Bundy's father, Cliven responded by telling the L.A. Times, "We believe that those federal people shouldn't even be there in that state, and be in that county and have anything to do with this issue. I have some sons and other people there trying to protect our rights and liberties and freedoms, and now we've about got one killed, and all I can say is he's sacrificed for a good purpose."
ROMANS: All right, nine minutes past the hour. Time for the EARLY START on your Money this morning. European stocks are higher of a bit right now. Asian markets closed mostly higher 2. But China shares once again very volatile plunging more than 4 percent overnight closing down before closing down about half a percent.
Now, U.S. stock futures are lower. What we're looking for today is a statement from the Federal Reserve on interest rates.
Yesterday stocks surged, on climbing oil prices, the Dow went the day up 282 points it's best days since early December. This morning though oil is once again falling, down more than 3 percent but nearing $30 a barrel. Oil and stocks have been unusually coupled here. So watch and see if that affects the stock market.
[04:09:59] Apple just had the most profitable quarter in American history. The company sold almost 75 million iPhones just barely launching a new record from the year earlier.
Apple's quarterly profit was a stunning $18.4 billion. So why are shares moving lower before the bell? Apple expect sales next quarter to fall for the first time in 13 years and investors faced a new era of slower growth for iPhone sales, you know, that stock is down 25 percent from its peak last year.
So Apple shareholders, many of you, if you bought Apple shears in the last year or so, you're under water, so we'll see what happens today.
SANCHEZ: We'll see what happens with the iPhone too if they maybe come up with something new to try to boost its sales.
ROMANS: You never know.
SANCHEZ: New details this morning on a manhunt find three dangerous inmates who escape at California jail. But the sheriff is extremely troubled. Next.
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SANCHEZ: Three violent inmates who broken out of a Southern California jail last week are still at large.
And authorities are now taking their appeal to the public for help to next level. A $200,000 reward now being offered for information leading to the capture of these fugitives, that's four times the previous amount. As details emerged about the elaborate escape from the Orange County jail, police are also concerned if these prisoners may have had help from inside.
(BEGIN VIDEO CLIP)
JEFF HALLOCK, SPOKESMAN ORANGE COUNTY SHERIFF'S DEPARTMENT: We have parallel investigations that are occurring and the preliminary investigation into the escape and how it occurred has caused the sheriff concerns, as to some of the jail inmate count practices and how they were conducted.
[04:15:04] Though information is still preliminary at this point the sheriff is extremely troubled by the length of time it took to determine that the three inmates housed in the maximum security jail were unaccounted for.
(END VIDEO CLIP)
SANCHEZ: Police say they have taken immediate steps to improve the inmate inspection process.
ROMANS: Never before seen, documents related to the case of Boston Marathon bomber Dzhokhar Tsarnaev will be made public today.
The judge who presided over last year's terror trail ordered that search warrant, photos and legal exhibits be unsealed.
ROMANS: Tsarnaev remained in solitary confinement at a supermax prison in Colorado while he appeal to his conviction and his death section in the 2013 marathon attack.
SANCHEZ: The FBI says it has foiled a mass shooting plot targeting a Masonic Temple in Milwaukee. The suspect 23-year-old Samy Mohamed Hamzeh is in custody. He's been under investigation since September.
Authorities say he initially planned to attack Israeli soldiers and civilians in the West Bank but then he abandoned those plans to focus on an attack in the United States.
Hamzeh allegedly told undercover agents that he wanted to commit an act of domestic terror.
ROMANS: Six Cleveland police officers have now been fired in connection with the deadly car chase back in 2012. It ended with police firing 137 bullets at this car killing Timothy Russell and Malissa Williams who were inside.
The six include Michael Brelo the only officer indicted in the incident. He was acquitted last year of manslaughter.
Officials say six other Cleveland cops have been suspended without pay for up to a month and a 13th officer involved has retired.
SANCHEZ: We should learn more about the state response to the water crisis in Flint when Michigan Governor Rick Snyder holds a news conference this morning. Snyder is requesting federal medical aid for Flint resident under 21 with potential health problems length to the lead contamination.
Meantime a new report suggests the governor's office rejected guidance back in 2012 not to switch the city's water source to the Flint River.
ROMANS: Schools in Sebring, Ohio, will reopen this morning. They were closed about two days while the state EPA conducted additional water testing.
Officials say lead contamination in tap water went unchecked for months in a cluster of villages including Sebring. While measurable levels of lead have been found in the town public schools most are below the limit allowed by the federal government.
SANCHEZ: The death toll keeps rising in that historic blizzard that pounded parts of the east this weekend.
Officials say at least 48 people died in car accidents, from carbon monoxide poisoning or heart attacks while shoveling snow. The victims lead in 12 states stretching from South Carolina to New York.
Meantime cities are still working to clean up from the monster storm. Officials say things are slowly getting back to normal in hard hit states and places like Washington D.C. federal offices are finally expected to reopen following a three delay.
ROMANS: All right the ocean view here is breathtaking but the ground under a cliff side apartment complex in Pacifica California is crumbling. And residents suddenly living on the edge are being forced to leave.
We get more from CNN's Dan Simon.
DAN SIMON, CNN CORRESPONDENT: Christine and Boris, Pacifica has one of the most gorgeous views you'll ever see but right now for a lot of folks who live here, things are very dangerous that's because there's been so much rain in the month of January El Nino rains. And those rains have caused part of a cliff to collapse. And there is an apartment complex that is gingerly sitting on top of the cliff.
And all of the doors have been yellow tagged. That means if you live there, you have to collect all of your belongings and get out as soon as you can. It is not know if those folks will be able to return because it's not clear if that cliff can be rebuild or stabilized in some fashion.
Now Pacifica we should tell you has had problems in the past but because California has been in the middle of a severe drought, we haven't seen this issue in a number of years. In the meantime people are keeping a close watchful eye on the cliff to see if there's any more erosion and wondering whether any more folks will be forced to evacuate.
Boris and Christine?
ROMANS: Terrifying, right.
SANCHEZ: My fear of heights kicked in watching over the edge.
ROMANS: Wow.
[04:19:05] SANCHEZ: Refugees escaping Syria and Iraq targeted by new legislation, one country voting to seize their assets and valuables, a controversial new law. Next.
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ROMANS: This morning the Danish parliament voting overwhelmingly in favor of a controversial bill that gives authorities of the power to seize refugees cash and valuables to help cover the cost of caring for them.
International Diplomatic Editor Nic Robertson following the story for and he joins us now, nic?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yeah, Christine, what happening across Europe countries here struggling to cope with the number of migrants that came in last year. There more than a million came into Europe.
Denmark, this is one symptom that we're seeing here that is trying to take some cash from the migrants to pay for their keep. Well another thing that's happening to them in Denmark, is will they now have to wait rather one year they'll have to wait three years if they have any family members that want to join them.
That's obviously a big strain for the migrants as well. But look across to Sweden. Sweden is having security issues with migrants. They're calling for another 4,000 police officers. But the biggest issue that's happening in Europe right now is they what we know as sort of a free border -- free internal border movement within Europe. You can get on a train in one country travel to another without a passport that the Schengen Europe. Well because of the migrant situation countries have been imposing temporary boarder controls. Denmark, Sweden and all the way Germany, Austria, France and a lot of countries has imposed these temporary controls.
What's being debated right now is making those border controls the need to show passports moving around inside Europe. That is now being discussed as making that situation permanent.
On top of that as well is possibly excluding Greece from Schengen Europe because a lot of migrants come in to Greece and then travel on to Europe without any passports and that is causing a concern that Greece isn't able to stem the flow of migrants coming to the rest of Europe. And what ministers are saying here is the symptom that we're seeing in Denmark is a symptom of Europe perhaps not being able to continue as a free zone where people can travel without passports.
[04:25:10] So a free Schengen zone Europe. And if that collapses, then the concern is that the whole European Union essentially starts to disintegrate. It's serious stuff for politicians there.
ROMANS: It really is. I mean for a couple of decades now, it's all been about opening those borders so that you can open the economy and you could make Europe like the United States of America sort of, you know, like one zone that is more powerful than all of the countries on it's own.
Reminder though for us, Nic, for people who might not understand what's like in Denmark. Very, very liberal social benefits, once you are accepted as the country, once you get refugee status, once you are naturalized or become a citizen there, right, it's very, very, very liberal benefits.
ROBERTSON: You're very well taken care of. Housing, food needs. If you don't have money, then society will take care of you. It's the same across -- and neighboring Sweden as well. Where they've taken per capita Sweden, like Denmark has taken a huge number of refugees and migrants over the years, per capita, but they just what they're finding is now they're reaching a breaking point where a host of issues, whether it's housing, whether it's financing, whether it's social integration issues, that's going to become a big word this year, integration rather than immigration.
Those issues are now becoming big political issues. The politicians they can't stand by a much Angela Merkel in Germany said she would open Germany's doors to all the migrants who wanted to come. Well they have over 800,000. Some are still living in school houses and old warehouses, they're literally physically struggling to cope with they've got. And the problem is people thought migrants would slow down in coming to Europe over the winter. Well they haven't. They're still coming in significant numbers ...
ROMANS: Yeah, and this is not a month by month story. This is a year by year story no question for these countries.
Nic, thank you so much for that, Nic.
SANCHEZ: Fox News blasting Donald Trump's decision to boycott its upcoming presidential debate. What the network is now saying about the Republican front-runner. (COMMERCIAL BREAK)
