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Trump Pursues Backdoor to Reach Out to Iran; Trump Delays Decision on Auto Tariffs for Six Months; Female Governor Signs Alabama's Most Restrictive Abortion Ban; Chinese Telecom Giant Barred from U.S. Aired 4:30-5a ET
Aired May 16, 2019 - 04:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[04:30:32] DAVE BRIGGS, CNN ANCHOR: President Trump pursuing a backdoor to negotiate with Iran. Who he's talking to and why he's frustrated with his top advisers. We're live in Tehran.
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PAT ROBERTSON, TELEVANGELIST: I think Alabama has gone too far.
(END VIDEO CLIP)
CHRISTINE ROMANS, CNN ANCHOR: Even the televangelist Pat Robertson says a near-total ban on abortions in Alabama goes too far. The governor has now signed it into law.
BRIGGS: The Chinese telecom giant now barred from doing business with American firms. The move escalating tensions amid an ongoing trade war.
ROMANS: Is a leading e-cigarette company downplaying the dangers of nicotine to minors? A new state lawsuit says yes.
Welcome back to EARLY START, everybody, this Thursday morning. I'm Christine Romans.
BRIGGS: I'm Dave Briggs. Good morning, everybody. 4:31 Eastern Time. We are live in Iran shortly.
We start with the breaking story we got overnight. Pictures of missiles in the Persian Gulf are what spurred the White House to escalate warnings about Iran. That's according to the "New York Times." The missiles were on small boats and fully assembled raising fears they could be fired at U.S. naval ships. CNN already reported Iran moving short range missiles as one of the reasons the U.S. decided to move an aircraft carrier strike group into the region.
ROMANS: And now after aggressive posturing toward Iran, President Trump wants to lower the temperature by speaking to the Iranians. The president will meet today with the president of the Swiss Federation. Last week CNN reported the White House passed along a phone number to the Swiss in case Iranian leaders want to call the president. A source tells CNN today's meeting with the Swiss is an effort to move that along.
CNN's Frederik Pleitgen is live for us now. He is in Tehran.
And, you know, Fred, the United States, you heard the president in several different media opportunities say, call me, I want the Iranians to call me. What's the latest from the leadership?
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, well, the Iranians are saying at this point in time, Christine, absolutely not. It was interesting because Iran's supreme leader himself, he came forward not too long ago and he said at this point in time negotiations with the United States are out of the question. It was quite interesting because he said that negotiations with the U.S. as he put it are poison but negotiations specifically with the Trump White House he said would be extra poison or double poison simply because of the strategy that the White House has had of this maximum pressure.
He said that is exactly like coercion, certainly not something that the Iranians are going to be negotiating under. It's quite interesting because the president of the country Hassan Rouhani, he also came out and said look, we have all the phone numbers that we need of the United States but at this point in time negotiations simply are not going to happen.
Now of course you said and we've learned that President Trump apparently not happy about some of his advisers in the White House. He feels that some of them are moving too quickly and too forcefully towards what could be a war with Iran. Of course President Trump he ran on a ticket of wanting to get America out of costly wars in the Middle East, so certainly right now there seems to be a bit of dissonance between President Trump and some of his most senior advisers.
And then of course you also have some dissonance in the coalition itself with the Brits standing by one of their generals' comment who said at this point in time they do not see any sort of increased posture or increased issues from Iranian and pro-Iranian militias in the greater Middle Eastern region. That of course specifically to Iraq and to Syria as well. However, we are learning from American sources that apparently the Brits are wrong, that there is an increased threat from Iranian militias in that area, and that the Brits themselves are also aware of the fact that their general misspoke. They do not think that there was any malicious intent behind any of that -- Christine.
ROMANS: So much happening and we're so glad that you're there in Tehran covering it for us. Thanks, Fred.
BRIGGS: OK. One day after 25 men voted in favor of the nation's most restrictive abortion ban, the female governor of Alabama has signed it into law. Republican Kay Ivey says the measure is a powerful testament to the belief that every life is precious. There are only exceptions in cases where the mother's life is threatened and there is no exception for rape or incest. Any doctor who performs an abortion faces up to 99 years in prison.
ROMANS: Even some conservatives say the law is too extreme. Here's televangelist Pat Robertson said on the Christian Broadcasting Network.
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[04:35:01] ROBERTSON: I think Alabama has gone too far. There's no exception for rape or incest. It's an extreme law. And they want to challenge "Roe v. Wade" but my humble view is that this is not the case we want to bring to the Supreme Court because I think this one will lose.
(END VIDEO CLIP)
ROMANS: The law won't go on the book for six months. The ACLU and Planned Parenthood are planning to file a lawsuit to block it. Exactly as this was designed to do, to draw a lawsuit. Alabama one of 16 states to introduce or pass restrictive abortion bills this year. Missouri's governor says he will sign a bill now in the state Senate that would ban abortions after eight weeks of pregnancy.
The delay in tariffs against the European Union as the trade war with China leads to fallout from farmers. President Trump was facing a Saturday deadline to decide whether to hike tariffs on cars coming in from Europe to 25 percent. That is a move that would have alienated European allies and devastated global supply chains. Now the president plans to delay that decision by six months in order to negotiate with the E.U. and Japan, according to a person familiar with the situation.
Delaying those auto tariffs is key, and shows just how sensitive the markets and the president really is to trade risks here, but trade hawks -- Trump trade talks have been consistent for months. When you break down the U.S. trade deficit by country, half of the overall goods deficit with the world is China. When you break it down by category, half the deficit -- trade deficit is autos. But as the president delays one tariff, the tit-for-tat with China is still hurting farmers.
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CHRISTOPHER GIBBS, OHIO FARMER: We're in a freefall out here in agriculture. We've seen 30 percent decrease in the prices of soybeans. The geopolitical turmoil that the president has thrown into the mix over the last year, the markets just don't have anywhere to go.
EVAN HULTINE, PRESIDENT, BUREAU COUNTY FARM BUREAU: Are fourth generation farm going to still be feasible, you know, two years from now, five years from now, if the president doesn't wrap up these trade wars with a win? And so there's all these pressures weighing in on us.
(END VIDEO CLIP)
ROMANS: You know, there are some of these counties where they aren't planting yet, a month into planting, farmers don't even know if they can afford to do it. We're on track for the worst conditions for farmers since the 1980s farm crisis. BRIGGS: On the same day he delayed the auto tariffs, President Trump
signed an executive order banning American countries from using telecom equipment deemed to be a national security threat. The White House initially declined to identify China and Huawei as the intended target but shortly after the order was issued, the Commerce Department formally added Huawei to the list of companies affected. Huawei says it is prepared to work with the United States on product security but the company says if it's restricted from doing business in America, the U.S. will be left behind in the 5g technology race.
Later today, the White House plans to release a broad outline of its new immigration reform spearheaded by Jared Kushner. It will address securing points of entry, increasing border barriers, and a merit points system. It will not deal with DACA which Democrats insist they want resolved as part of the deal. It also omits discussion of family separations at the border, low-skilled immigrants or the 11 million undocumented immigrants already in the U.S.
ROMANS: The administration wants to address border security, a move toward a merit based system which gives preference to skilled and educated immigrants. It also signals a shift away from immigrants coming to the U.S. based on family ties. The plan is short on concrete details and so far many key Republicans are not publicly on board.
The word we keep hearing is they're underwhelmed.
BRIGGS: Yes. Unimpressed.
The message from the White House is clear. No do-overs and no documents. The Trump administration flatly rejecting all requests by the House Judiciary Committee in its sweeping investigation of possible obstruction by the president. White House counsel Pat Cipollone accusing the committee of trying to conduct its own version of the special counsel investigation in order to harass President Trump. It adds another layer to the escalating feud between the White House and House Democrats.
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REP. JERRY NADLER (D-NY): The implication of what they're doing would make the president a tyrant in the sense of not being accountable to the American people, not being answerable to Congress, and that no one can hold him accountable. And that is simply un-American and we cannot abide it.
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ROMANS: The president has made it clear he intends to fight all House subpoenas. Judiciary chairman Jerry Nadler and other Democratic leaders are now raising the prospect of holding multiple administration officials in contempt. That serves as a backdrop for a telling attempted humor between Attorney General Barr and House Speaker Nancy Pelosi. They crossed paths at an event at the Capitol on Wednesday and Barr asked the speaker if she brought her handcuffs. Pelosi responded by indicating the House sergeant-at-arms was present should an arrest be necessary. Barr chuckled and walked away.
BRIGGS: Uncomfortable humor.
[04:40:03] The maker of the popular e-cigarette Juul accused of deceptive advertising aimed at teens. Ads that they are -- said to lie about the dangers of nicotine. North Carolina's attorney general filing a lawsuit Wednesday against Juul labs claiming thousands of kids in the state are at risk of addiction to nicotine. A.G. Joshua Stein says Juul, quote, "must be stopped from spreading that addiction any further."
It's the first time a state has taken legal action over the company's alleged marketing toward teens. The suit claims that Juul's 75 percent market hold on e-cigarette is primarily driven by use among middle and high schoolers.
ROMANS: All right. A charter helicopter pilot lucky to survive a harrowing crash into New York's Hudson River. Fire officials say that the 34-year-old pilot was moving his empty chopper from a fuelling station to the passenger area of a heliport when he ran into trouble. You can see the aircraft's spin into the water. The pilot deployed the helicopter's flotation device, climbed out of the aircraft and was picked up by a nearby ferry. His only injuries were to his hand and his pride. The NTSB will lead an investigation into the crash.
BRIGGS: Yikes.
All right, ahead, getting two feet on the ground never felt so good. A harrowing experience for two window washers who went on a wild ride 50 stories above the ground.
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[04:45:39] ROMANS: All right. The field of 2020 Democratic presidential hopefuls expands to 23 this morning with New York City Mayor Bill de Blasio entering the race. A senior Iowa Democrat with knowledge of his plans confirming it to CNN. He will head out on the trail almost immediately, making stops in Iowa and South Carolina.
BRIGGS: Interesting remarks from presidential candidate Kamala Harris. She turned the tables when asked if she'd join the Biden ticket as his VP.
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SEN. KAMALA HARRIS (D-CA), PRESIDENTIAL CANDIDATE: I think that Joe Biden would be a great running mate. As vice president he's proven that he knows how to do the job.
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BRIGGS: Harris also says she disagrees with comments her hypothetical VP made this week about the 1994 crime bill Biden pushed as a senator. It included billions in funding to states where new prisons, trained police officers and mandated life sentences for people convicted of three violent felonies. (BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENTIAL CANDIDATE: Ninety-two out of every 100 prisoners behind bars or in a state prison, not a federal prison. This idea that the crime bill generated mass incarceration, it did not generate mass incarceration.
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BRIGGS: Harris, a former prosecutor, told CNN that the crime bill did contribute to mass incarceration, invoking a federal three strikes law. Experts tell CNN that it's difficult to assess how the 1994 bill contributed to mass incarceration because incarceration rates had been rising steadily since the early '70s.
ROMANS: Meantime, a new Quinnipiac poll from the critical state of Pennsylvania shows Trump in trouble against several possible 2020 opponents. Biden leads him double-digits. Sanders also ahead. The poll shows Trump within the margin against several other top candidates.
BRIGGS: Were the pilots partly to blame for crashes of two Boeing 737 MAX jets? Well, the acting chief of the FAA says yes. During a congressional hearing yesterday, acting administrator Daniel Elwell told Lion Air pilots did not follow an emergency checklist. If they had, he said it could have disabled the automated system that kept pushing the plane's nose down in October. Elwell acknowledged that Boeing should have included information about the faulty stabilization system in its pilot's manual.
ROMANS: Elwell also said the pilots in March's Ethiopian Airlines disaster didn't adhere an emergency directive put out after the Lion Air crash. But Ethiopian officials have said pilots performed all of the plane maker's procedures. 737 MAX jets are being grounded after those crashes which killed a total of 346 people. Elwell says a Boeing software update is expected in the next week or so. "Wall Street Journal" reported this week that the full rollout would be delayed until August.
All right. Where is the highest paid internship in the U.S.? Are you looking for work this summer? Look to --
BRIGGS: Yes, maybe.
ROMANS: CNN Business next.
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[04:53:05] BRIGGS: The Trump administration refusing to back an effort led by New Zealand to combat online extremism. Eighteen governments and five U.S. tech giants support the measure. It's a response to the live streamed shootings at two Christchurch mosques that killed 51 people. White House officials claim free speech concerns prevented them from getting on born. The New Zealand initiative was nonbinding but it reflected a global frustration with Facebook, Google and Twitter for their inability to restrain hateful content that leads to violence. Those three firms plus Microsoft and Amazon signed on to the effort.
ROMANS: President Trump granting pardons to two of his allies. Patrick Nolan is a former Republican legislator who joined forces with Jared Kushner on prison last year. He pleaded guilty to a racketeering charges in the '90s after an FBI sting. And he spent more than three years in federal prison.
The other pardon goes to former media mogul Conrad Black. The ex- newspaper publisher recently offered a flattering book about the president called "Donald J. Trump, A President Like No Other." Black was convicted on four counts of fraud in 2007. He spent 3 1/2 years in prison.
BRIGGS: Family and friends remembering the Colorado teenager killed while lunging to stop one of the gunmen at the STEM School Highlands Ranch in Colorado. Thousands gathered in Highlands Ranch to celebrate the life of Kendrick Castillo. They were surrounded by robots, a kayak and some of Castillo's other favorite things. Speakers paid tribute to his sacrifice.
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UNIDENTIFIED MALE: He died for us. Now it's time for us to live for him.
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BRIGGS: Eighteen-year-old Castillo also loved jeeps so a local enthusiast groups arranged to escort his family to the service with dozens of jeeps you see there lined along the left side of the road there. What an image. Colorado Governor Jared Polis declared yesterday Kendrick Castillo Day.
[04:55:06] ROMANS: All right, 55 minutes past the hour. Ford is recalling another 270 Fusion vehicles to fix a glitch that can cause cars to shift gears and roll away. The expanded recall covers certain 2013 through 2016 Fusion midsized cars with 2.5 liter engines. Last year the company recalled 550,000 Fusions and Escape SUVs for the same problem. Engineers are developing a fix. Until then, listen up folks, Ford is urging drivers to always use the parking brake. There has been one report of injury, three involving property damage.
BRIGGS: For anyone with a fear of heights this just might be your worst nightmare. Window washers trapped in a lift basket swinging wildly out of control and crashing into the side of the tallest building in Oklahoma City about 50 stories up. The impact was hard enough to break windows at the very top of the Devon Tower. It took 45 minutes for emergency crews to secure the lift and get the two workers to safety. Devon Energy, which owns the building, says the company's emergency response team is investigating the incident.
ROMANS: Would you pay $91 million for this? The stainless steel sculpture by artist Jeff Koons called "Rabbit" just set the new record for a living artist in auction, bidding for the three foot creature started at 40 million, but a number of bidders chased it, smashing estimates. The winning bid was $80 million. Auctioneers fees bumped it to 91 million. The winning bidder, Bob Mnuchin, is son of the Treasury secretary, Steven Mnuchin.
BRIGGS: Just wow. For the first time Hershey's 125-year history, its iconic chocolate bar is getting a makeover. The new packaging will support a variety of emojis, thumbs up, sad face, face blowing a kiss, face with tears of joy, more than two dozen in all. It's a big change for sure, but the emoji filled redesign is not permanent. The new bars will be on sale for a limited time beginning this summer.
ROMANS: All right. Let's get a check on CNN business this morning. Markets around the world are mixed on Wall Street. We've got futures higher here. Stocks closed higher Wednesday after reports President Trump would delay a decision to hike tariffs on auto imports by six months. The Dow closed up 116 points. The S&P 500 finished about six-tenths of a percent higher. The Nasdaq closed up 1.1 percent. Boeing was a big gainer Wednesday after reports the FAA will submit a software fix for the 737 MAX 8 soon.
The internet has revolutionized real estate. You can find homes online, you can research your own home purchase so why are real estate agents still getting their fat 6 percent commissions? A new set of lawsuits could change that. For decades the system allowed home buyers to believe the seller covers the agent's cost and the consumer doesn't have a choice. Now a trio of lawsuits is challenging that.
Five law firms allege the high commissions were a result of collusion by the National Association of Realtors and the nation's largest brokerage franchises in violation of federal antitrust laws. A realtor spokesman from the NAR said the suit is utterly without merit and the current system promotes efficiency and helps advance the best interest of all clients.
Are you looking for an internship this summer? You might want to check out Facebook. Despite all of its scandals, Facebook is still the top spot for high-paying internships. A Glass Door survey found Facebook offers an average monthly salary of $8,000 a month.
BRIGGS: Come on.
ROMANS: That is the equivalent of 96 grand a year. Tech companies accounted for 44 percent of all employers on Glass Door's list. Amazon came in second, followed by Sales Force, Google and Microsoft.
BRIGGS: What are the hours, do you know? What time do you have to report for work?
ROMANS: I don't know. Tell me again about your --
BRIGGS: Just asking for a friend.
ROMANS: Your coding skills are what? Your --
(LAUGHTER)
BRIGGS: None.
ROMANS: Your software engineering is what? BRIGGS: What was your highest paying internship? Because mine was
zero. I never made a dime for an internship.
ROMANS: You know, my parents would not let me take unpaid internship. They said that --
BRIGGS: Below you.
ROMANS: Yes. Well, because you know --
BRIGGS: Well, mine were a reflection of mine so.
ROMANS: We didn't have like a, you know, a big bank account.
BRIGGS: Makes sense.
ROMANS: All right. EARLY START continues right now.
BRIGGS: Photos of missiles in the Persian Gulf forced the U.S. to up the ante on Iran. President Trump now pursuing a backdoor to talks. We're live in Tehran.
(BEGIN VIDEO CLIP)
ROBERTSON: I think Alabama has gone too far.
(END VIDEO CLIP)
ROMANS: Even the televangelist Pat Robertson says a near total ban on abortions in Alabama just goes too far. The governor has now signed it into law.
BRIGGS: The Chinese telecom giant now barred from doing business with American firms, a move escalating tensions amid an ongoing trade war.
BRIGGS: Is a leading e-cigarette company downplaying the dangers of nicotine to minors? A new lawsuit says yes.
Good morning and welcome to EARLY START. I'm Christine Romans.
BRIGGS: I'm Dave Briggs. Some staggering stats about that. 78 percent rise among high school students in one year.
ROMANS: Yes, it's really stunning.
BRIGGS: Vaping is a huge problem in this country.
Good morning, everyone. It is 5:00 a.m. --
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