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Early Start with John Berman and Zoraida Sambolin
Preliminary Finding Reached in Ethiopian Crash; Dems and Trump Refuse to Move on From Collusion; British Parliament to Vote Again on Brexit; Aired 4:30-5a ET
Aired March 29, 2019 - 04:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[04:30:35] JESSICA DEAN, CNN ANCHOR: Breaking overnight, the strongest sign yet the same system failed in the two Boeing crashes. We are live in Ethiopia.
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The Democrats have to now decide whether they will continue defrauding the public with ridiculous (EXPLETIVE DELETED).
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DAVE BRIGGS, CNN ANCHOR: President Trump in full attack mode in his first rally since he was cleared of collusion.
DEAN: And no shortage of madness. One seed barely hangs on and two two seeds are headed home.
Welcome back to EARLY START. I'm Jessica Dean in for Christine Romans this morning.
BRIGGS: Good to see you, my friend.
DEAN: Thanks.
BRIGGS: Good morning, everyone. I'm Dave Briggs. It is 30 minutes past the hour.
We start with breaking news in that Boeing investigation. According to the "Wall Street Journal," preliminary findings show a stall prevention feature automatically activated before the 737 MAX jet crashed this month in Ethiopia. That's believed to be the same sensor that brought down a Lion Air flight last October. Those two crashes killing 346 people.
Let's go live to Ethiopia and bring in CNN's Robyn Kriel.
Robyn, good morning.
ROBYN KRIEL, CNN CORRESPONDENT: Good morning, Dave. Well, those findings we understand released at a preliminary report at a high level FAA briefing. And as you can imagine for Boeing, this would be a real double edged sword, it's a sign of the same problem that MCAS failing in both the Lion Air crash and the Ethiopian Air crash here which occurred on the 10th of March. But at the same time maybe also a sign of relief because at least it's not something else that could be wrong with the plane. Definitely for Ethiopian Airlines, this would be a sign of relief because it means that if indeed the reporting is true that this was not due to human error, due to pilot error.
Hear on the ground we're told that Ethiopian Airlines officials are in a high level government meeting. They are not commenting as of yet, but the minister of transports in charge of the investigation has said before that there were indeed similarities between that Lion Air crash and the Ethiopian Air crash.
The Ethiopia Air crash killing 157 people, still very raw here on the ground. And Ethiopian families still grieving. They do not have any remains of their loved ones to take back with them, some of the families are still here in Ethiopia having traveled out to the crash site being brought over by Ethiopian Airlines.
We went in a simulator by invitation by Ethiopian Airlines a couple of days ago, the same simulator that those pilots trained on, a 737 MAX. We did see the quick reference handbook. It did not have any mention of the MCAS failure in that quick reference handbook, which means if there was a catastrophic failure and the flight -- the plane started to behave in a strange manner, that there would be no quick way that the pilots could quickly determine what was wrong and that would mean it would have gone into the ground as it did -- Dave and Jessica.
BRIGGS: Important reporting there.
Robyn Kriel, just past 11:30 in Ethiopia. Thank you.
DEAN: Breaking overnight, another attempt to undermine Obamacare blocked in court. A federal judge striking down a Trump administration rule that allows small businesses to band together and set up health insurance plans that skirt requirements of the Affordable Care Act. The judge calling it a clear attempt to add an end around. The Justice Department now considering all of its options before responding.
BRIGGS: Republicans on Capitol Hill growing anxious, hoping for guidance from the White House on an Obamacare alternative. So far crickets. And after a failed repeal effort in 2017, Senate Majority Leader Mitch McConnell wants no part of this fight. He tells Politico, "I look forward to seeing what the president is proposing and what he can work out with the speaker."
So what is the president proposing?
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TRUMP: Well, we're working on a plan now. There is no very great rush from the standpoint. We're waiting for decisions in the court.
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DEAN: No very great rush. Vice President Pence's chief of staff did not get that memo.
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MARC SHORT, CHIEF OF STAFF TO VICE PRESIDENT MIKE PENCE: The president will be putting forward plans this year that we hope to introduce into Congress.
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DEAN: It has been an eventful week for efforts to tear down Obamacare. On Monday the Justice Department reversed its position and said that the entire Affordable Care Act should be struck down.
[04:35:00] On Wednesday, a federal district court judge blocked the administration's efforts to allow states to impose work requirements on Medicaid recipients.
BRIGGS: Some Democrats refusing to move on from collusion and so too it seems is the president. Here he is at his first rally since he was effectively cleared of collusion.
House Intelligence Chairman Adam Schiff still maintains there was collusion even if the special counsel could not prove it beyond a reasonable doubt. He is facing full throated attacks from Republicans on his committee.
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REP. MIKE CONAWAY (R), TEXAS: Your willingness to continue to promote a false narrative is alarming. The findings of the special conclusively refute your past and present assertions and have exposed you as having abused your position to knowingly promote false information. We have no faith in your ability to discharge your duties in a manner consistent with your constitutional responsibility and urge your immediate resignation as chairman of the committee.
REP. ADAM SCHIFF (D), INTELLIGENCE COMMITTEE CHAIRMAN: My colleagues may think it's OK that the Russians offered dirt on a Democratic candidate for president. But I don't think it's OK. I think it's immoral, I think it's unethical, I think it's unpatriotic, and, yes, I think it's corrupt. And evidence of collusion. And the day we do think that's OK is the day we will look back and say that is the day America lost its way.
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DEAN: There may be debate around Schiff's claims but at least one person on the president's favorite network agrees with him.
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JUDGE ANDREW NAPOLITANO, FOX NEWS SENIOR JUDICIAL ANALYST: I think that Congressman Schiff is correct. In that report will be evidence of the existence of a conspiracy. Not enough evidence to prove the existence beyond a reasonable doubt.
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DEAN: The Mueller report is 300 plus pages. And so far we have only seen a summary from Attorney General Barr. Democrats are demanding the full release of that report by April 2nd, but the primary obstacle to getting it is the presence of grand jury information.
BRIGGS: CNN has learned House Judiciary Chairman Jerry Nadler offered Barr the opportunity to work together to get a court order to release the grand jury information. An aide to Nadler says Barr is open to Nadler's arguments but is still a far cry from where the chairman is right now.
DEAN: Homeland Security Secretary Kirstjen Nielsen is asking Congress for new authorities to deport and detain migrants. Right now the federal government is preparing for unaccompanied minors in its care to double this fiscal year. Nielsen also wants DHS to be allowed to keep migrant families in custody throughout their immigration proceedings. And she wants Central Americans to apply for asylum in their home countries.
President Trump in Michigan last night not exactly sympathetic to the migrants' plight.
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TRUMP: They are all met by the lawyers and they say, say the following phrase, I am very afraid for my life. I am afraid for my life. OK. And then I look at the guy, he looks like he just got out of the ring, he is a heavyweight champion of the world. He's a fighter. It's a big fat con job, folks.
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BRIGGS: "A big fat con job," applying for asylum because you fear for your life. Customs and Border Protections Commissioner Kevin McAleenan says March will be the highest month for illegal border crossings in about a decade.
CNN has also learned the Defense Department is scouting sites along the U.S.-Mexico border to erect new physical barriers. Small teams of engineers and experts all on the ground in Yuma, Arizona and the New Mexico part of the El Paso sector. Actual construction could begin by late May.
The "Washington Post" has uncovered documents that allegedly show President Trump frequently exaggerated his assets while he was a businessman. The "Post" reports Trump would not hand out documents outlining his finances and assets. The accuracy of those documents coming up at Michael Cohen's hearing just last month.
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REP. ALEXANDRIA OCASIO-CORTEZ (D), NEW YORK: Did the president ever provide inflated assets to an insurance company?
MICHAEL COHEN, TRUMP'S FORMER LAWYER: Yes. (END VIDEO CLIP)
BRIGGS: Just some of the highlights from this report, Mr. Trump said his namesake tower has 68 stories. It has 58. He claimed he owned a 2,000 acre vineyard in Virginia but land records show about 1200 acres. And Mr. Trump said he had 55 home lots to sell at his golf course in Southern California when records show he had 31. That's a $72 million difference in revenue. No comment from the White House nor the Trump Organization.
DEAN: The embattled CEO of Wells Fargo Tim Sloan is stepping down. Sloan has worked at Wells Fargo for three decades and says the company would benefit from a fresh perspective. The bank's board plans to replace him with an outsider. Wells Fargo has struggled to overcome a litany of scandals. In 2016 there was national backlash over employees creating millions of fake accounts to meet sales quotas.
[04:40:05] Wells Fargo also admitted charging borrowers for auto insurance they didn't need and mortgage fees they didn't deserve.
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UNIDENTIFIED MALE: Dribble himself free. He's going to have to take a long one. Step back three for the tie. He's done it again.
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BRIGGS: The Madness was back Thursday for the Sweet 16. Purdue held off a big rally by Tennessee before pulling away in overtime for a 99- 94 win. Boilermakers in the Elite Eight for the first time since 2000. Virginia, your top seed in the south, advancing with a hard- fought win over the 12-seed Oregon 53-49. Gonzaga in the Elite Eight for the fourth time as the Zags top seed in the West defeated Florida State 72-58. And finally, Texas Tech, they're headed to their second straight Elite Eight. The Red Raiders crushed Michigan 63-44.
Michigan's 44 points the fewest by a number two seed in tournament history. Their fans as you can see were stunned last night.
DEAN: Yes. They look pretty sad.
BRIGGS: Yes.
DEAN: The U.K. was supposed to leave the European Union today and instead it will vote for a third time on a deal that's failed twice. We are live at 10 Downing. That's next.
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[04:45:26] BRIGGS: Today is the day the U.K. was supposed to leave the European Union. That's now off the table, but a big moment for Brexit is at hand. Lawmakers in Britain deciding to vote for a third time on Prime Minister Theresa May's plan for exiting the E.U.
Let's go live to London and bring in Nic Robertson. Nic, where are we heading? NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, Dave,
Theresa May is trying to make this easier on herself, easier on the MPs or easier on the country. She has split the controversial deal into two parts. The divorce part and the future relationship part. And she is asking the MPs today to vote on the divorce part, the withdrawal agreement.
Counter intuitively however this is going to be the hardest part to pass. Number one because the other part isn't legally binding and this part is. But because this is the element that contains the all contentious issue about the border with Ireland, the so-called backstop. And so for that reason it appears even at this late stage it is very questionable whether Theresa May will be able to turn around those huge losses that she had before earlier this year.
Twice the vote going down. Record breaking 230 votes back in January, 2 1/2 weeks ago losing by 149 votes. Today she still doesn't seem to have some of the hard line members of her party on board. or the MPs from Northern Ireland who are critical to her majority. And also we understand the opposition party, Labour Party, is going to vote against it as well, Dave.
This vote coming just a matter of hours in what is an emergency session of parliament today. The MPs don't normally meet on a Friday -- Dave.
BRIGGS: And meanwhile, reading about this petition, Nic, that has five million plus signatures to stay in the E.U., the mess continues.
Nic Robertson covering all of it for us at 10 Downing. Thank you, sir.
DEAN: A lot of tension between President Trump and Puerto Rico's governor over disaster relief efforts. Ricardo Rossello's top aides tell CNN there was a tense encounter at the White House Wednesday. Senior staff warning the Puerto Rican contingent they were pushing too hard to arrange a meeting with the president. And in an exclusive interview with CNN, the governor says he will not sit back and allow his officials to be bullied.
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GOV. RICARDO ROSSELLO, PUERTO RICO: If the bully gets close, I'll punch the bully in the mouth.
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DEAN: The White House denies Puerto Rican officials were told to stop requesting a meeting with the president and claims the administration will continue working with Rossello and his aides on recovery efforts. Earlier this week the president questioned Republican senators on the wisdom of directing more aid to Puerto Rico.
BRIGGS: Huawei made a profit last year but reported negative growth in its networking business. That's a potential sign the U.S.-led campaign against the Chinese tech giant may be working. Huawei reported its annual profit jumped 25 percent to $8.7 billion in 2018. Its sales surpassed $100 billion for the first time. But growth in Huawei's networking business which includes providing 5g equipment to carriers around the world dropped by 1.3 percent.
The U.S. has been leading an effort to curb Huawei's ambitions to become the global leader in 5g technology. Washington has alleged Beijing could use the company's products to spy on other nations. Huawei denies that any of its products pose a threat to national security.
There are also criminal charges the U.S. has against Huawei and its CFO Meng Wanzhou. U.S. prosecutors accuse Huawei and Meng of violating U.S. sanctions on Iran. The case raises the possibility that Washington could ban American companies from doing business with Huawei. Huawei and Meng deny those charges.
Coming up, some more business news. Lyft has beat Uber to the public markets and has priced its IPO above its original price range. CNN Business has the details next.
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[04:53:46] BRIGGS: The New York Attorney General's Office is suing six opioid manufacturers. The suit alleges manufacturers and six of their distributors engaged in false and deceptive marketing practices. It also names the eight members of the Sackler family which owns Perdue Pharma, the pharmaceutical giant that manufactures Oxycontin.
The New York A.G.'s office is suing to get companies to change their business practices and to get financial compensation for the state. Part of it would fund prevention programs along with addiction and medical treatment. Purdue Pharma denies the allegations. A rep for the Sackler family calls the claims baseless.
DEAN: An 11th hour reprieve for a Texas death row inmate. The Supreme Court halting the scheduled execution Thursday of Patrick Henry Murray. The justices ruling against the state saying Murphy was entitled to have a Buddhist spiritual adviser in the death chamber. Murphy is on death row for his role in the murder of a police officer in 2000.
It is the second time in recent weeks the high court has been asked to put an execution on hold. At issue is a policy allowing Christian or Muslim chaplains who are prison employees to be present but not advisers of other religions.
BRIGGS: Google and Twitter now under scrutiny by the Department of Housing and Urban Development.
[04:55:03] HUD firing off letters to the tech giants questioning their advertising practices. The agency also announcing charges against Facebook for alleged housing discrimination through its advertising platform. Facebook says it was caught off guard by the charges because it's been working with HUD to address its concerns.
DEAN: The agency does not have an open investigation into Twitter or Google. Those letters were intended to start a conversation about how housing is advertised. Twitter tells CNN Business it does not allow discriminatory advertising and Google says it has longstanding policies that prohibit targeted ads based on race, ethnicity, religion or disability.
BRIGGS: An autopsy on South Carolina 5th grader (INAUDIBLE) is scheduled for today. As we learn new details about what led to her death. Law enforcement officials now saying she was injured when a fight broke out in her classroom Monday and that weapons were not involved. CNN affiliate WCIV reporting paramedics found her unconscious in the school's nurse's station. She died in a Charleston hospital on Wednesday.
School officials say a student has been suspended until an investigation into the incident is completed. It's not clear if that student was involved in the fight. A vigil for (INAUDIBLE) was held yesterday. CNN spoke with her grandfather.
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UNIDENTIFIED MALE: For violence or anything like that, she never would do that. I miss her, we love you. We'll do everything we can do for justice for her.
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BRIGGS: (INAUDIBLE)'s mother has said she believes her daughter was bullied.
DEAN: Wow and worse, the reaction of stranded passengers on both sides of the Atlantic after the ultra budget carrier Wow Air suddenly ceased operations and canceled all flights. The airline announced the closure Thursday in a statement posted to its Web site. It advised passengers to book new flights on other airlines and said some may be eligible for compensation.
Passengers describe chaotic scenes at airports in the U.S. and abroad. Other airlines including EZ Jet, Iceland Air, Norwegian Air and the Lufthansa Group are offering reduced fares to travelers impacted by Wow Air's demise.
A woman with two wombs has given birth twice in less than a month to three children. A lot of numbers there. 20-year-old Arifa Sultana of Bangladesh delivered a boy in late February. Then less than four weeks later she returned to the hospital with lower abdominal pain. Doctors performed an ultrasound and realized she was pregnant with twins. Sultana has two uteruses, it's a condition called uterus didelphys. Her first baby and the twins were conceived and grown in separate wombs. Doctors performed a C-section to deliver the twins, a boy and a girl. All three children are safe and healthy and mom is doing just fine.
BRIGGS: Remarkable.
All right. 4:57, a check on CNN Business this morning. Global markets are higher amid hopes of progress in U.S.-China trade
talks. Asian markets closed up, European markets opened higher, as trading begins there. On Wall Street futures are higher. U.S. markets closed higher Thursday. The Dow closed up 92 points. The S&P 500 and Nasdaq both closed up slightly. The S&P 500 is on track for its best quarter since 2009. Lyft has beat Uber to the public market and its stock woke up at a hefty price.
Lyft makes its public debut today and has priced its initial public offering at 72 bucks. Valuing the company at around $24 billion. That is above its original proposed price range suggesting there is strong investor demand. Lyft's public debut could be a bellwether for how so-called unicorn companies will be received by investors. Uber, Slack, Pinterest and Post Mates all expected to go public this year.
Amazon beefing up its presence in Austin, Texas. The company announced plans to create 800 new tech jobs in Austin in areas such as engineering, research, science and cloud computing. Austin did not provide any incentives to Amazon for the new jobs. Amazon already has 1,000 corporate employees in Austin. The Austin expansion was already in the works prior to Amazon's position to scrap plans to build HQ2 in Long Island City last month. Amazon has set his investors over $7 billion in the state of Texas since 2011.
EARLY START continues right now.
Breaking overnight, the strongest sign yet the same system failed in two Boeing crashes. We are live in Ethiopia.
(BEGIN VIDEO CLIP)
TRUMP: The Democrats have to now decide whether they will continue defrauding the public with ridiculous (EXPLETIVE DELETED).
(END VIDEO CLIP)
DEAN: President Trump in full attack mode in his first rally since he was cleared of collusion.
(BEGIN VIDEO CLIP)
TRUMP: I have overridden my people. We're funding the Special Olympics.
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