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Early Start with John Berman and Zoraida Sambolin

Trump Targets Caravan to Energize Base; Trump's Trade Adviser Talks Taxes; Trump Slams "Worst Cover-Up in History"; $1.6B Mega Millions Winner in South Carolina; Georgia Governor Contenders Square Off; Red Sox Win Game 1 of World Series; U.S. Cyber Command Targets Russian Meddling; Uber Eats Continues to Grow. Aired 4:30-5a ET

Aired October 24, 2018 - 04:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEO CLIP)

[04:30:57] JIM ACOSTA, CNN CHIEF WHITE HOUSE CORRESPONDENT: There's no proof that they're in the caravan now?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, they could very well be.

ACOSTA: But there's no proof?

TRUMP: There's no proof of anything. There's no proof --

(END VIDEO CLIP)

CHRISTINE ROMANS, CNN ANCHOR: No facts, no problem. The president sticking with his strategy on racial and cultural issues to rally Republicans ahead of the midterms.

(BEGIN VIDEO CLIP)

ROMANS: How long will this take with China?

PETER NAVARRO, WHITE HOUSE TRADE ADVISER: The ball's in China's court.

(END VIDEO CLIP)

DAVE BRIGGS, CNN ANCHOR: The president's trade adviser defending a trade war with China, but the president says he'd only use tariffs as a negotiating tactic.

(BEGIN VIDEO CLIP)

TRUMP: It was a total fiasco from day one.

(END VIDEO CLIP)

ROMANS: The president's anger growing with the Saudis, calling their story about Jamal Khashoggi one of the worst cover-ups in history.

BRIGGS: And somebody in South Carolina waking up $1.6 billion richer today. The rest of us, we will work today. Your numbers, 5-28-62-65- 70, and the Powerball, big one, is 5.

Welcome to EARLY START. Congratulations to somebody. I'm Dave Briggs.

ROMANS: Working with you, Dave, is priceless.

BRIGGS: I appreciate it. We'd still be here.

ROMANS: Maybe.

I'm Christine Romans. It is 32 minutes past the hour.

All right. Thirteen days until to the midterms, folks, and the president is fully committed to vilifying the migrant caravan in Central America to energize his base. One problem the president is having -- he cannot back up many of his claims with facts. After days of asserting unknown Middle Easterners are embedded with the caravan, the president was asked for proof.

(BEGIN VIDEO CLIP)

TRUMP: Very good relationship with Border Patrol and ICE and they say it happens all the time, from the Middle East. It's not even saying bad or good, but some real bad ones. But --

ACOSTA: There's no proof that they're in the caravan now?

TRUMP: Well, they could very well be.

ACOSTA: But there's no proof?

TRUMP: There's no proof of anything. There's no proof of anything. But they could very well be.

(END VIDEO CLIP)

BRIGGS: Such a revealing sound byte there.

Ten minutes later, the Homeland Security Department spokesman tweeted DHS can confirm there are gang members and criminals in the caravan, and people from the Middle East traveling through Mexico. But DHS is not confirming any of them terrorists or any proof for its claims saying it is law enforcement sensitive.

Look, the president with senior commanders in the room said he is considering military options for the border.

(BEGIN VIDEO CLIP)

TRUMP: Thinking about a lot of things, thinking about everything, including the military. Not just the National Guard, the military is what I'm thinking about. We can't have people coming into our country illegally.

REPORTER: What legally could the military do?

TRUMP: They can do a lot. They're the military. Right, fellas? They're the military. They can do a lot.

(END VIDEO CLIP)

ROMANS: The president also doubled down on calling himself a nationalist while denying there are any racist overtones to that term.

(BEGIN VIDEO CLIP)

ACOSTA: There's a concern that you are ended coded language or a dog whistle to some Americans that what you really mean is that you're a white nationalist.

TRUMP: I never even heard that. I cannot imagine that. You mean I say -- I'm a nationalist. No, I never heard that theory about being a nationalist.

We protect, and we get killed. We do the training, and they get killed. Can't do it.

All I want our country is to be treated well, to be treated with respect. So, in that sense, I am absolutely a nationalist and I'm proud of it.

(END VIDEO CLIP)

BRIGGS: The president's potential 2020 opponents honing in on all this, including former Vice President Joe Biden.

(BEGIN VIDEO CLIP)

JOE BIDEN, FORMER VICE PRESIDENT: This president's more like George Wallace than George Washington.

(LAUGHTER)

No. And Democrats have to choose hope over fear. Unity over division!

(CHEERS AND APPLAUSE)

We have to choose our allies over our enemies. We have to choose truth over lies.

(END VIDEO CLIP)

BRIGGS: President Trump back on the road tonight campaigning for Republicans in Wisconsin.

ROMANS: All right. Tariffs are the president's preferred tool in his trade policy. The president downplaying the size of those tariffs, specifically on steel and aluminum, as small to the "Wall Street Journal."

His tariffs on $250 billion in Chinese goods have angered the Chinese, but they are a crucial strategy here in the president's trade war with China. [04:35:07] The president's top trade adviser explains why the

president is holding tough on China.

(BEGIN VIDEO CLIP)

NAVARRO: At the end of the day, China's a nonmarket economy run by an authoritarian regime. It engages in predatory economics and economic aggression, not just against us but against the rest of the world. If we lose our industries of the future, we lose our future. So that's the path we're on right now.

ROMANS: So to the question of how long will this take with China --

NAVARRO: Ball's in China's court. China has experienced rapid growth for the better part of three decades using a nonmarket economy model based on economic predation. A lot of their profitability at the end of the day comes from the fact that they don't have to pay anywhere near as much research and development expenditures. Why? Because they steal it all from us.

(END VIDEO CLIP)

ROMANS: I asked Peter about negotiations over intellectual property. This is one of the big asks from the administration -- stop stealing intellectual property from the United States. He says that China isn't budging and that the toughest part is even getting the Chinese to admit they steal from the U.S. The president meets with the Chinese President Xi Jinping next month in Buenos Aires at the G-20.

BRIGGS: Terrific interview.

Candidates for the next governor of Georgia covered a wide range of topics during their hour-long debate last night sparring over criminal just reform, education, Medicaid, and voter suppression. Democrat Stacey Abrams, Republican Brian Kemp, and libertarian Ted Metz squaring off. Abrams defending a 1992 Georgia flag burning protest when it's still had the Confederate symbol.

CNN's Kaylee Hartung in Atlanta with more.

(BEGIN VIDEOTAPE)

KAYLEE HARTUNG, CNN CORRESPONDENT: Dave, Christine, for the first time in this hotly contested race, Georgia's candidates for governor faced off in a debate. And right out of the gate, Democrat Stacey Abrams was asked about the news of the day. Her admission that in 1992 she participated in a protest where the old Georgia state flag was burned.

STACEY ABRAMS (D), GEORGIA GUBERNATORIAL CANDIDATE: And 26 years ago as a college freshman, I along with many other Georgians, including the governor of Georgia, were deeply disturbed by the racial divisiveness that was embedded in the state flag with that Confederate symbol. I took an action of peaceful protest. I said that that was wrong. And ten years later, my opponent, Brian Kemp, actually voted to remove that symbol. HARTUNG: The most controversial topic for Republican Brian Kemp to

address -- the allegations of voter suppression by Stacey Abrams in his capacity as secretary of state.

BRIAN KEMP (R), GEORGIA GUBERNATORIAL CANDIDATE: We have more voters on the roll than when I took office. I created the process for overseas and military ballots to be delivered electronically. We have made it easier to vote and hard to cheat. And just because Ms. Abrams files a false lawsuit or the New Georgia Project, it doesn't mean it's right, and we defeated that in 2014.

HARTUNG: Both campaigns entered this debate with similar strategies -- to continue down their polar opposite paths. Both did that, continuing to energize their bases in a state where very few undecided voters remain -- Dave, Christine.

(END VIDEOTAPE)

ROMANS: All right, Kaylee. Thank you for that.

President Trump this morning set to meet with U.S. officials returning from Turkey and Saudi Arabia. They were there looking into the death of "Washington Post" columnist Jamal Khashoggi. "The Wall Street Journal" asked the president about the possible involvement of Crown Prince Mohammed bin Salman.

Trump said: Well, the prince is running things over there. So, if anybody were going to be, it would be him.

The president delivering his harshest indictment so far of the Saudis, and Khashoggi's horrific murder.

(BEGIN VIDEO CLIP)

TRUMP: They did the wrong thing in even thinking about the idea. They certainly did a bad job both execution and they certainly did a bad job of talking about it or covering it up, if you'd like to say that. But I would say it was a total fiasco from day one.

(END VIDEO CLIP)

BRIGGS: Secretary of State Mike Pompeo says the U.S. will revoke the visa as of all the Saudis linked to the murder. He says the administration has, quote, identified at least some of the individuals responsible.

So far, it seems this fiasco has done little, though, to harm the crown prince's image back home. Crowds rushed to take selfies with MBS as he walked into the Saudi investment conference in Riyadh.

One other photo of note -- the crown prince with Khashoggi's son. The prince will make his first public speech since the Khashoggi crisis at the summit today.

ROMANS: I think that's the king -- that's the king with Khashoggi.

BRIGGS: There it is, the crown prince there.

ROMANS: And shaking hands -- picture released by the Saudis actually of them shaking hands.

BRIGGS: He's not allowed to travel, by the way, Khashoggi's son.

ROMANS: That's his son and brother there meeting the king and the crown prince.

All right. Someone in South Carolina is waking up rich. At least one Mega Millions jackpot ticket worth $1.6 billion was sold in the Palmetto State. That person could walk away with a lump sum of $904 million. In case you missed it, here are the winning numbers, 5-28- 62-65-70, the mega ball is 5.

[04:40:05] Don't worry, your dreams of becoming a zillionaire are not over. Tonight's Powerball is worth a whopping $620 million.

BRIGGS: That's $350 cash, I think.

ROMANS: I think it's 350 cash.

For that Mega Millions, whoever you are, congratulations. Think about growing the money, not spending it. I think you could have five generations of wealth there if you play this correctly, you know? Think about growing it, not spending it --

BRIGGS: After you buy your boat, OK?

ROMANS: Buy a boat. Buy your mom a house. And then the --

BRIGGS: All right. There's also a winner in game one of the World Series, and that, of course, the Boston Red Sox. The pitching duel did not materialize. Sox win 8-4 on the strength of a three-run homer by Eduardo Nunez that broke the game open in the bottom of the seventh.

They're back at it tonight, game two, the fall classic tonight at Fenway Park. And it will be chilly in Boston.

ROMANS: All right. Imagine this, getting on an escalator and out of control, a malfunction sends dozens tumbling and looking for a way out.

(COMMERCIAL BREAK)

[04:45:11] BRIGGS: Four-forty-five Eastern Time.

And the U.S. military cyber command has started targeting Russian operatives it thinks are trying to interfere in the 2018 midterm elections. All part of a broad effort to make meddling more difficult. Tactics include sending phishing messages to suspected cyber operatives.

The operation unfolding as national security advisor John Bolton was meeting with Russian leader Vladimir Putin, something the president may do in the next few weeks.

Let's go live to Moscow and bring in CNN's Matthew Chance.

Trump, Putin in Paris, what could go wrong, Matthew?

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Absolutely nothing. I mean, it's going to be -- going to go really, really well, isn't it? I mean, the last time they met was in Helsinki in July, where President Trump, you may remember, came in for that ferocious criticism for appearing to take the side of the Russian president over his own intelligence services over the issue of whether Russia interfered in the U.S. presidential election or not.

I'm sure the White House wants to put them that behind them. Certainly they'll have something different to speak about because the United States has announced, President Trump has announced the U.S. is going to withdraw from the INF Treaty, the Intermediate Range Nuclear Forces Treaty, something that was signed in 1987 at the height of the Cold War with the Soviet Union. It now just applies to Russia and the United States.

The U.S. says that Russia has violated that treaty by developing and deploying intermediate range missiles. They also have expressed concern that it doesn't cover other countries like China, for instance, who are free to develop missiles that fall into that category. That something Russia is also concerned about, by the way, and has expressed that concern on numerous occasions over recent weeks. But they also want to stay part of this security architecture.

So, Vladimir Putin, the Russian president, asking for these talks in Paris on the sidelines of the 100th anniversary of Armistice Day, the end of the First World War, of course. And getting that in which the nuclear issue will be the main issue the two leaders will discuss -- Dave.

BRIGGS: It should be fascinating.

All right. Just before noon there in Moscow. Matthew Chance live for us, thank you.

ROMANS: All right. An escalator malfunction at a metro station in Rome injures at least 20 people. One of them seriously. Look, video shows people screaming, dozens were thrown down at the metro station.

Most of the injured were Russian soccer fans on their way to attend a Champions League match. Rome's mayor said it appeared some were dancing and jumping on the escalator. The fire officials say the investigation is ongoing. That looks terrifying.

All right. Uber plans to cover more than 70 percent of the U.S. by the end of the year. We're going to check on "CNN Business" next.

(COMMERCIAL BREAK)

[04:52:36] BRIGGS: An apology from morning television host Megyn Kelly for defending blackface Halloween costumes during a segment on her NBC show. Kelly defended a white reality star who portrayed Diana Ross last year.

(BEGIN VIDEO CLIP)

MEGYN KELLY, NBC HOST: What is racist? Because -- because truly, you do get in trouble if you are a white person who puts on black face for Halloween --

UNDENTIFIED FEMALE: Yes.

KELLY: -- or a black person who puts on white face for Halloween, like -- when I was a kid, that was okay as long as you were dressed as a character.

(END VIDEO CLIP)

BRIGGS: After an immediate backlash, Kelly sent a note to NBC colleagues saying: One of the wonderful things about my job is that I get the chance to express and hear a lot of opinions. Today is one of those days where listening carefully to other points of view including from friends and colleagues is a leading me to rethink my own views.

In 2013, while still an anchor at Fox, Kelly infamously declared Jesus and Santa white men and calling it a verifiable fact.

ROMANS: A lot of people saying when she was a kid that was okay --

BRIGGS: She was born in 1970.

ROMANS: That's my era, too.

BRIGGS: Me, too.

ROMANS: And it was not okay. It was not.

BRIGGS: Not okay.

My son asked to do that last year when he was Bruno Mars. I explained to him the history behind blackface. Pretty simple.

ROMANS: All right. Fifty-three minutes past the hour.

The victim of an apparent murder at Club Med in Turks and Caicos has been identified as Maria Kuhnla, a 62-year-old attorney from New York. According to a CNN affiliate WABC, Maria was on a girls trip with friends and her daughter earlier this month when she vanished during the fifth day of her vacation. Her body was discovered by her daughter the next morning in some bushes at the edge of the resort. Maria's friends said authority said it appears she was strangled.

BRIGGS: The suspected killer of a University of Utah student was a registered sex offender. State corrections officials say 37-year-old Melvin Rowland was previously convicted of enticing a minor and forcing sexual abuse. Lauren McCluskey's mother Jill says her daughter Rowland for about a month and ended the relationship this month when she found out about his criminal past. She says her daughter reported Rowland, and was harassing her to

University of Utah police. Rowland was found dead of an apparent self-inflicted gunshot wound early Tuesday inside a Salt Lake City Church.

ROMANS: A devastating fire destroying the First Baptist Church of Wakefield in Massachusetts last night. A witness report seeing lightning strike the 180-foot steeple before the building, look, just went up in flames.

[04:55:04] According to its website, the church is 150 years old. The building appears a total loss. No injuries reported.

BRIGGS: In Austin, Texas, city officials are expecting water restrictions and boil-water advisories to last days, not weeks. The city closely watching the water levels and the rain that's expected today. The restrictions and advisories follow historic flooding that produced much higher levels of debris, silt, and mud in the water supply.

Take a look at this extraordinary image showing where Barton Creek meets Lady Bird Lake in Austin.

ROMANS: All right. It's like something from a TV sitcom. A group of apparently dim would-be robbers in Belgium took a storeowner's word when he told them, come back later, I don't have enough cash in my register.

The owner, of course, then immediately called the police. When the group of robbers, would-be robbers, returned early, the owner told them to come back a third time. When they finally did, officers were waiting. Five suspects were quickly arrested.

BRIGGS: While you were sleeping, the late-night comics weighing in on the president's road show in the upcoming midterm elections.

(BEGIN VIDEO CLIP)

STEPHEN COLBERT, COMEDIAN/LATE NIGHT HOST: The midterm elections are just two weeks away. So if you're going to quit America, you have to put in your notice now.

TRUMP: Does everybody know what this means?

COLBERT: No. Yon what this means. Are you -- are you feeding chickens? Are -- are you dealing blackjack? Oh, I know -- you're spreading bull (EXPLETIVE DELETED)

JAMES CORDEN, COMEDIAN/LATE NIGHT HOST: Trump's team said the president is scheduled to hold ten more rallies before the election. So, don't worry, if he hasn't insulted your minority group yet, he will get to you. Just sit tight, OK?

(END VIDEO CLIP)

ROMANS: Just a little taste while you were sleeping. Let's get a check on CNN Business this morning.

Global markets mostly higher today. Wall Street closed lower driven by continued worry about the U.S.-China trade war. Big companies warning the material costs are rising because of steel tariffs like Caterpillar. Look at that stock, it fell more than 7 percent yesterday, sending the Dow lower.

You know, yesterday was insane. It dropped as much as 500 points, and then closed down just 126. The Nasdaq fell as did the S&P 500. The S&P 500 down for five days in a row now.

The Nintendo Switch is getting into the education game. Nintendo announced Tuesday it is partnering with the nonprofit Institute of Play, introducing the Switch and DIY label kits to 100 elementary schools across the U.S. The goal here, helping kids build critical skills in STEM and communication.

Nintendo of America's president told CNN the move aims to get the next generation of workers excited about new technology. Look, I got these Switches at my house. This is a perfect delivery device. A pilot program has already brought kids to 11 schools in New York City Tristate area.

We need a lot of work on STEM in this country.

Uber Eats just keeps growing, plans to cover more than 70 percent of the U.S. by the end of the year. It already covers more than half of the population. That's huge compared to its competitor Postmates. Covers about 60 percent. Uber plans to expand to less densely populated suburban areas.

BRIGGS: And by 2021, "Wall Street Journal" says food delivery drones. Would you?

ROMANS: There we go. I don't know. The world is changing so quickly. I'll try anything.

BRIGGS: EARLY START continues right now.

(BEGIN VIDEO CLIP)

JIM ACOSTA, CNN CHIEF WHITE HOUSE CORRESPONDENT: There's no proof that they're in the caravan now?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, they could very well be.

ACOSTA: But there's no proof?

TRUMP: There's no proof of anything. There's no --

(END VIDEO CLIP)

ROMANS: No facts, no problem. The president sticking with the strategy on racial and cultural issues to rally Republicans ahead of the midterms.

(BEGIN VIDEO CLIP)

PETER NAVARRO, WHITE HOUSE TRADE ADVISER: We're seeing wage growth with that investment, and it's hitting on all cylinders.

(END VIDEO CLIP)

ROMANS: The president's top trade adviser says tax cuts and tariffs are behind the strong economy. So, why is the president targeting his Fed chair yet again?

(BEGIN VIDEO CLIP)

TRUMP: It was a total fiasco from day one.

(END VIDEO CLIP)

BRIGGS: The president's anger growing with the Saudis, calling their story about Jamal Khashoggi one of the worst cover-ups in history.

ROMANS: And someone in South Carolina is waking up $1.6 billion richer today. The rest of us, have a good Wednesday at work. Blah, blah.

BRIGGS: There's still a plan B out there, folks.

Good morning. Welcome to EARLY START. I'm Dave Briggs.

ROMANS: And I'm Christine Romans. It's Wednesday, October 24th.

You're talking about the Powerball? The Powerball is still open?

BRIGGS: That's right, $350 million cash option.

ROMANS: If we spent as much time preparing for retirement as we do dreaming about Mega Millions --

BRIGGS: I'll pay 5 bucks to dream.

ROMANS: All right.

It is 13 days until the midterms. And President Trump is fully committed to vilifying the migrant caravan in Central America to energize his voters. One problem the president is having, he cannot back up many claims with facts.

The caravan is still weeks away from the U.S. border and has decreased from 7,000 to about 4,500, according to the Mexican government. After days of asserting unknown Middle Easterners are embedded with the caravan, the president was asked for proof.