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Early Start with John Berman and Zoraida Sambolin
Corsi: Stone Asked Me to Press Assange; Trump Spilling His Guts; Hyde-Smith Wins Senate Runoff in Mississippi; Stunt Gone Wrong; Ukraine Declares Martial Law Along Russia Border; Duke Slams Its Way Past Indiana. Aired 5-5:30a ET
Aired November 28, 2018 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[05:00:00] CHRISTINE ROMANS, CNN ANCHOR: He resigned as chairman in July after news he had used the "n" word on a conference call. Earlier this month, Papa John's said same-store sales in North America fell by almost 10 percent during the most recent quarter. So, sales are down, the management upheaval and a buyer apparently backs out.
Is Microsoft the new tech heavyweight? Maybe. Microsoft briefly overtook Apple to become the world's most valuable company on Tuesday, according to Wall Street data. Microsoft closed up 107 points. That's about 0.6 percent. Apple closed down.
So there you go. They changed leadership there. Microsoft's rise is fueled by its ability to avoid the disappointing earnings results and increased regulatory scrutiny that have plagued many of the big-tech rivals recently.
DAVE BRIGGS, CNN ANCHOR: All right. EARLY START continues right now.
(MUSIC)
BRIGGS: What does Robert Mueller know about Trump associate Roger Stone? New court documents just obtained by CNN.
ROMANS: President Trump says he has a high level of intelligence, and still his gut instincts are better than anyone else's brain.
(BEGIN VIDEO CLIP)
SEN. CINDY HYDE-SMITH (R), MISSSISSIPPI: We can go forward, and we're not looking back.
(END VIDEO CLIP)
BRIGGS: A Republican win in last night's Senate runoff with the balance of power in the House continuing to turn blue.
ROMANS: Plus, how a party stunned, a gender reveal, goes wrong, sparking an $8 million environmental disaster.
Good morning, and welcome to EARLY START. I'm Christine Romans.
BRIGGS: I'm Dave Briggs. Not a fan of the gender-reveal party --
ROMANS: Not a fan of that one, right.
BRIGGS: That one in particular. But I'm glad we missed it.
It's Wednesday, November 28th, 5:00 a.m. in East.
We start with the latest on the Russia investigation. We have a much clearer idea what special counsel Robert Mueller may know about Trump confident Roger Stone's effort to get documents from WikiLeaks. CNN has obtained draft court documents apparently written by Mueller's office. They cite emails between Stone and his associate, right-wing author Jerome Corsi, during the 2016 campaign.
In them, Stone pushes Corsi to get in touch with WikiLeaks' founder Julian Assange, Corsi reports back Assange has document dumps that will damage Hillary Clinton in the works.
Here's Sara Murray with more.
(BEGIN VIDEOTAPE)
SARA MURRAY, CNN POLITICAL CORRESPONDENT: Good morning, Christina and Dave.
Jerome Corsi's legal troubles could be giving us a glimpse into special counsel Robert Mueller's potential collusion case. Corsi, who's an associate of Roger Stone, shared a pile of draft documents with CNN that allegedly show Stone pushing Corsi to try to obtain documents from WikiLeaks that could be helpful to the Trump campaign. This was in the summer of 2016.
Now, the documents included draft court filing that provides insight into what Mueller may know about Stone's efforts to obtain information from WikiLeaks in 2016. Now, Corsi says that summer wasn't the only time that Stone told him to go to WikiLeaks and try to get the goods. He claims he spoke to Stone on October 7th, in the hours before the now-infamous "Access Hollywood" tape became public.
Stone wanted him to try to mitigate the fallout with some help from WikiLeaks.
JEROME CORSI, CONSERVATIVE AUTHOR: We get to October 7, which was a very, very busy day from here in New York. And Roger calls me three times. We had three -- three times we have a discussion.
Now, my recollection is that Roger is saying, you know, Billy Budd is going to be dropped and Assange better get going. Why don't you get to your buddy Assange and tell him to start? Well, I didn't have any contact with Assange. But Roger going back to July and August may have, you know, may have led him on.
MURRAY: Stone denies Corsi's version of events, telling CNN, it is pure, unadulterated B.S.
Now, Corsi still insists he never had any contact with Assange, and Stone still says he never had any advanced knowledge of WikiLeaks document dumps. So, far neither men is facing charges. Corsi says he won't sign on to
a plea agreement the special counsel has offered him. They want him to plead guilty to perjury but he says he never knowingly lied to investigators.
As for what's next, Corsi says he doesn't know, but he knows the special counsel's office is none too happy that he's gone on this publicity tour.
Back to you, guys.
(END VIDEOTAPE)
BRIGGS: Sara Murray, thank you.
Democrats are warning President Trump that even dangling a pardon for Paul Manafort could lead to a charge of obstruction of justice. White House Press Secretary Sarah Sanders says she is confident the president was involved in any wrongdoing and was not part of any campaign collusion. She was asked whether a pardon for Manafort still on the table.
(BEGIN VIDEO CLIP)
REPORTER: Given that the president said this morning that Robert Mueller is ruining people's lives, is he considering a pardon for Paul Manafort or for others who are prosecuted and have been prosecuted?
SARAH HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: I'm not aware of any conversations for anyone's pardon involving this process at all.
(END VIDEO CLIP)
BRIGGS: Rudy Giuliani is not ruling anything out.
[05:05:00] He tells CNN the president has been upset for weeks about what he considers the un-American, horrible treatment of Paul Manafort.
ROMANS: President Trump explaining why he is so skeptical of his own administration's report on the dire consequences of climate change. He tells the "Washington Post" this -- one of the problems that a lot of people like myself, we have very high levels of intelligence, but we're not necessarily such believers. You look at our air and our water, and it's right now at a record clean.
For the record, the Yale environmental performance index ranks the U.S. 83rd in the world in air pollution, 29th in water and sanitation. The White House Press Secretary Sarah insists the federal government climate change study produced by more than 300 scientists and experts is not based in fact.
(BEGIN VIDEO CLIP)
SANDERS: It's not data driven. We'd like to see something that is more data driven, that's based on modeling which is extremely hard to do when you're talking about the climate. Again, our focus is making sure we have the safest, cleanest air and water. The president's going to do exactly that.
(END VIDEO CLIP)
ROMANS: When asked about the deadly wildfires in California, the president once again claimed the problem could be solved by raking those California forests.
BRIGGS: The president blaming drops in the stock market and plant closings at General Motors on the Federal Reserve. Mr. Trump says he is not even a little bit happy with his pick for Fed chairman Jerome Powell, telling "The Washington Post," quote: So I'm doing deals and I'm not being accommodated by the Fed. I'm not happy with the Fed. They're making a mistake because -- here's the key -- I have a gut. My gut tells me more sometimes than anybody else's brain can ever tell me.
ROMANS: Jerome Powell will speak at the New York Economic club today. We'll see if he avoids any confrontation with the president there --
BRIGGS: No gut references forthcoming from the Fed chair.
ROMANS: Maybe not.
All right. President Trump threatening to cut all General Motors subsidies after the automaker announced thousands of job cuts and the shuttering of five facilities in North America. The president tweeted Tuesday, quote, very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan, and Maryland. We are now looking at cutting all GM subsidies including for electric cars.
A person familiar with the matter told CNN GM is unaware of significant federal subsidies it is receiving beyond a $7,500 plug-in tax credit. And that doesn't go to GM. That goes to the consumer to help you buy an electric vehicle.
After the president's threat, GM released a statement saying it remains committed to, quote, maintaining a strong manufacturing presence in the United States, pointing to more than $22 billion of investments in domestic operations since 2009. GM also said the restructuring announced Monday is aimed at supporting future growth such as driverless cars and electric vehicles and long-term success.
The company is hiring. They're hiring --not hiring as one analyst told me, not power train engineers anymore. It's software engineers and tech. That's what they're hiring.
BRIGGS: The evolution of the U.S. auto industry.
Republican Cindy Hyde-Smith will keep her Senate seat, holding off a Democratic challenge in Mississippi. CNN projects Hyde-Smith will defeat Democrat Mike Espy in the Senate runoff election. The election centered largely on Hyde-Smith's comments evoking the dark history of the state's racism and slavery. She acknowledged it was indeed a difficult campaign.
(BEGIN VIDEO CLIP)
HYDE-SMITH: You can get brutalized. You can get beat up. That's kind of part of this business. We're putting it behind us. We can go forward, and we're not looking back.
(END VIDEO CLIP)
BRIGGS: Hyde-Smith will now finish out the final two years of Thad Cochran's term. He retired from the Senate earlier this year. She'll have to run again in 2020 for a full six-year Senate term.
So, the Mississippi's race is the last Senate contest to be decided in the midterm. Come January, the Senate balance of power will look like this -- 53 Republicans, 47 Democrats, giving the GOP a net gain of two seats in the senate.
ROMANS: Meantime, the Democratic majority in the next House continues to grow. The party picked up another seat with Xochitl Torres Small beating Republican Yvette Herrell, in New Mexico's he second congressional district. That makes a net gain of 35 seats for the Democrats.
Can they reach 40, though? Just one house race left to call in California's district, where Democrat T.J. Cox has pulled ahead of Republican Congressman David Valadao by just over 400 votes in the latest tally. CNN and other news organizations had called the race for Valadao on election night. But CNN withdraw the projection as the count tightened.
So, at the moment, the balance of power in the House looks like this -- Democrats, 234 seats, Republicans, 200 seats. One seat undecided.
About the blue wave, call it a tidal wave really. Democrats made big gains in the 2018 midterms, picking up 39 seats in the House. In governor races, governor's races, Democrats had a net gain of seven while Republicans lost six. And in the state legislatures, Democrats gained at least 332 seats.
Perspective from our favorite pollster Harry Enten, before the election, 58 percent of the population had a GOP governor.
[05:10:01] After the election, 47 percent have a GOP governor.
BRIGGS: Later today, Democrats meet behind closed doors to decide whether Nancy Pelosi will be the next House speaker. By CNN's comment, 23 Democrats have committed to voting against Pelosi today or at least abstaining. Even so, she is flatly expected to win the vote.
But a public vote on the House floor on January 3rd remains filled with intrigue. Pelosi penning a letter to fellow Democrats asking for their support writing, history is in a hurry, and we need accelerate the pace of change in Congress. The public has entrusted us to save our democracy.
It begs the question, she says she'll be a transitional figure. Transitioning to whom and when, we have no idea.
ROMANS: Right.
All right. Russia and Ukraine on the brink of war? Martial law kicks in this morning. We're going to go live to Kiev, next.
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ROMANS: President Trump says he's waiting for a full report on Russia's most recent confrontation with Ukraine.
[05:15:02] He says depending on what it says, he may skip his scheduled meeting with the Russian President Vladimir Putin at that G20 Summit this week.
Just a few hours, martial law went into effect in 10 Ukrainian border provinces. Tension climbing in the region after Russia seized three Ukrainian navy ships in the Kerch Strait on Sunday. You see them ramming a Ukrainian tugboat.
This morning, more than a dozen Ukrainian sailors are still being held prisoner by Russia. Their confessions, maybe forced confessions, have been aired on Russian television.
Senior international correspondent Nick Paton Walsh joins us live from Ukraine.
Nick, what is the latest this morning?
NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, at this point, the Kremlin say they're making accommodations for the meeting despite Trump saying he might cancel it if he learns the full details -- he said was going to be a full report that he was supposed to hear last night. We don't know what that's resulted in. We know that he's been relatively muted in terms of criticizing what he called aggression, saying he wasn't happy about it, saying he wanted it straightened out.
But he did use the phrase, quote, either way, suggesting perhaps he could hold either side responsible for what happened in the Kerch Strait, the most brazen military-on-military confrontation we've seen so far. Normally, the Russian military has used proxies or disguises to some degree over the last four years while it's attacked Ukraine. But it's led to these days of escalating rhetoric despite Germany's Angela Merkel calling for de-escalation, we've not seen that.
And about four hours ago here in Ukraine, marshal law kicked into effect in ten regions. I got to tell you, there's no obvious, palpable sign being reported of what that actually means on the ground. There's been a bit of confusion, frankly, about exactly how this is going to be implemented. It's supposed to last 30 days. But even last night, Petrov Poroshenko, the Ukrainian president, said he hadn't decided yet if part of martial law was to initially ban Russian citizens from entering Ukraine.
So, I think many are concerned about the great latitude for it to be interpreted different ways. The broader signal is how much does Moscow think from the relatively calm White House reception it can get away with -- Christine.
ROMANS: Indeed. Nick Paton Walsh for us in Kiev -- thank you.
BRIGGS: A video released by the U.S. forest service shows a gender- reveal party that went horribly wrong, sparking a huge wildfire in southern Arizona.
That happened. In the video from last April, the target containing explosive Tannerite is hit by a high-powered rifle, exploding in blue powder to reveal Dennis Dickey and his wife were having a son. The blast ignited a fire that grew to some 47,000 acres, causing $8 million worth of damage. Dickey pleaded guilty to a misdemeanor charge, ordered to pay $100,000 in restitution up front, $500 a month for the next 20 years. Yet another reason not to have a gender-reveal party.
ROMANS: I never have been into the gender-reveal party. And the elaborate proms people ask for homecoming or prom with the super elaborate, I never --
BRIGGS: Glad we missed those waves indeed.
ROMANS: Dave, you want to go to the senior prom with me?
We don't usually cover table tennis, but there's a miracle shot you have to say. Coy Wire with more in this morning's "Bleacher Report".
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[05:22:47] BRIGGS: All right. After a wild Saturday in college football, there's a shakeup in the playoff rankings.
Coy Wire here this morning with the "Bleacher Report."
Hey, buddy.
COY WIRE, CNN SPORTS CORRESPONDENT: Good morning, Dave.
You knew after number-10 Ohio State put up 62 points while smashing Michigan we'd see a shakeup in the rankings. Michigan is out of the top four. Georgia's replaced them.
But what we were watching for is who would be number five, Oklahoma or Ohio State, well, the playoff committee chose Oklahoma. That's significant because Georgia, big underdogs to Alabama in the sec title game this weekend.
So, if Oklahoma avenges their only loss in the season against number 14 Texas, they could be in. Not guaranteed, though, if the buckeyes now at six put on a show against number 21, Northwestern.
To hoops, Duke's loss in Maui dropped them to third in the college hoop rankings. But Zion Williamson and the boys were back to their high-flying selves last night. Zion with signature window slam, and then later on getting a alley hoop from Trey Jones, throwing down. Williamson had 25 points of the night. Duke wins it ACC Big Ten challenge match-up with Indiana 90-69.
A great honor for America's favorite hoops fan last night. Ninety- nine-year-old Loyola Chicago team chaplain Sister Jean made a name for herself during the miracle run to the final four last season, may have reward -- they have rewarded her with a ring to mark the occasion. Look at that smile. She's loving every moment of it.
I got a chance to meet her here in Atlanta during the Sweet 16. And I wanted to give her a ring, Dave and Christine. Marry me, Sister Jean. Good to see her still smiling.
All right. Finally, we don't often show Norwegian table tennis, but you have to see the once in a lifetime moment. Fifteen-year-old Christopher Chen tumbled to the ground on a return. Watch his paddle go up, lying on his back, right there. During the smash, he somehow blocks it.
The opponent seemed to be shocked. He amazingly somehow returns it and gets the point. But Chen would win in the end here. He wins this match three sets to love. They're calling this kid a cult hero.
[05:25:01] It's going absolutely viral. Had to share that with you this morning.
BRIGGS: I think you need some table tennis endorsements after a shot like that.
Coy Wire, thank you, my friend. Appreciate it.
WIRE: You're welcome.
BRIGGS: Romans, over to you.
ROMANS: All right. Thanks, Dave.
New information about Robert Mueller's Russia case. What draft documents obtained by CNN say about Roger Stone and WikiLeaks.
And what President Trump says about guts, brains, and his high level of intelligence.
(COMMERCIAL BREAK)
ROMANS: What does Robert Mueller know about Trump associate Roger Stone? New draft court document just obtained by CNN.
BRIGGS: President Trump spilling his guts, he will, to the "Washington Post" claiming his gut instincts are better than anyone's brain.
(BEGIN VIDEO CLIP)
SANDERS: It's not data driven. We'd like to see something that is more data driven. (END VIDEO CLIP)
ROMANS: All right. The Trump administration climate change report is dead wrong, says the Trump administration.
(BEGIN VIDEO CLIP)
HYDE-SMITH: We can go forward and we're not looking back.
(END VIDEO CLIP)
