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Early Start with John Berman and Zoraida Sambolin

Biden Aiming For Bipartisan Compromise On Infrastructure; Times Square Businesses Look Forward To Return Of Tourists; Coronavirus Strikes Varanasi, Hindu Faith's Holiest City. Aired 5:30-6a ET

Aired May 07, 2021 - 05:30   ET

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

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[05:31:14]

LAURA JARRETT, CNN ANCHOR: Good morning, everyone. This is EARLY START. I'm Laura Jarrett.

CHRISTINE ROMANS, CNN ANCHOR: And I'm Christine Romans. It is 31 minutes past the hour this Friday morning.

It's the big "i" in business -- inflation. It's the downside of an economy roaring back to life. The pandemic disrupted global supply chains. Now, consumers are dealing with higher prices and shortages as all those kinks get worked out.

A shortage of lumber is adding $36,000 to the cost of a typical single-family home. A shortage of computer chips has automakers idling assembly lines. Rental cars are hard to find and used cars getting more expensive by the day.

American factories can't find enough workers. That worker shortage could cost the economy up to $1 trillion by some estimates, by the year 2030.

Restaurants can't find workers as they work to reopen. Many have left the restaurant industry altogether. And some menu items, like chicken, are harder to find and more expensive.

After bottoming out last year, steel prices are not at a record high, nearly triple the 20-year average.

The Treasury Sec. Janet Yellen, this week, suggested the Fed could raise interest rates to counter a hot economy but not anytime soon.

In the post-COVID reality, higher prices are coming. Only time will tell whether inflation is temporary or something more dangerous, Laura.

JARRETT: So, steel prices are up now. Know what requires a lot of steel? Infrastructure.

Let's bring in Daniella Diaz live on Capitol Hill for us this morning. Daniella, we have new reporting about how President Biden plans to pursue his infrastructure plan in the weeks ahead. What are you hearing about this?

DANIELLA DIAZ, CNN CONGRESSIONAL REPORTER: Laura, the next coming weeks are going to be a huge test for Biden's administration to see if he can reach a deal on infrastructure with Republicans. Biden has signaled in private conversations that he is open to trying to reach a deal with Republicans on infrastructure, you know. He has this goal of an infrastructure package to reshape the economy and create more jobs.

And he has already invited Sen. Shelley Moore Capito to the White House next week. She's the lead Republican negotiator on this infrastructure package. She proposed her own infrastructure package counteroffer to Biden's proposal and they are going to meet next week to discuss this issue.

But look, the bigger picture here is Biden is aware of the uphill climb he faces on trying to reach -- pass an infrastructure package in the Senate with this slim majority. You know, there's -- and there's senators, such as Joe Manchin -- moderates who say that they don't want to proceed with just Democrats on this issue without trying to reach a deal with Republicans first.

But look, Republicans want the bill to be focused more on roads, bridges, water, broadband -- these very typical infrastructure topics. Meanwhile, Biden proposed a reimagined infrastructure package that includes an extension of the child tax credit and millions of jobs for clean energy.

But the bottom line here is that Biden is aware that he faces an uphill climb on trying to pass an infrastructure package without Republicans signing on and he's now going to spend the next two weeks trying to see if he can reach a deal with Republicans on this issue -- Laura.

JARRETT: All right, Daniella, thanks so much for that -- appreciate it.

Facebook's independent oversight board did more than just uphold the company's ban on former President Trump this week. It also called for a deeper review of the role that the platform played in the spread of election conspiracy theories that led to the U.S. Capitol riot. The board says the review should be an open reflection on the design and policy choices that Facebook has made that may allow its platform to be abused.

Facebook has tried to distance itself from the notion that it played a role in the insurrection.

[05:35:03]

ROMANS: A Zoom court hearing for Capitol riot suspects going off the rails with the lawyer for one suspect blaming Foxitis for his client's actions. The attorney for Anthony Antonio told the judge that after Antonio lost his job at the start of the pandemic he became hooked on what Fox News fed him, developing what he called Foxitis and Fox mania.

JARRETT: I don't think that's an official designation.

But another defendant, Landon Copeland, launched into an expletive- filled rant, calling court officials evil and berating an attorney who was critical of former President Trump. The judge had to mute him.

ROMANS: And Eric Munchel, the so-called zip tie man -- he has filed a motion asking for permission to call his mother -- who, incidentally, is a co-defendant -- on Mother's Day. The two were initially jailed but released under strict conditions that include having no contact with each other.

JARRETT: So we've got organic food, we've got calling your mother on Mother's Day.

Now to this. It's a raging debate. How soon is it too soon for the CDC to consider lifting mask mandates? The former head of the FDA says the time is now.

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DR. SCOTT GOTTLIEB, FORMER DIRECTOR, FOOD AND DRUG ADMINISTRATION: I think we should start lifting these restrictions as aggressively as we put them in. We need to preserve the credibility of public health officials to perhaps reimplement some of these provisions as we get into next winter if we do start seeing outbreaks again. I think the only way to earn public credibility is to demonstrate that you're willing to relax these provisions when a situation improves.

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JARRETT: When it comes to getting more Americans vaccinated, a trend is emerging -- more carrots than sticks.

EARLY START has the pandemic covered coast-to-coast.

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BIANNA GOLODRYGA, CNN SENIOR GLOBAL AFFAIRS ANALYST (on camera): I'm Bianna Golodryga in New York.

As more universities and colleges announce COVID-19 vaccine requirements for the fall, one New Jersey school is offering an added bonus.

Rowan University announced that any full-time students who show proof that they are fully vaccinated by August seventh will receive a $500 credit towards their course registration and an additional $500 towards housing costs. The university is mandating vaccines for all students living on campus or attending classes in person.

JEAN CASAREZ, CNN CORRESPONDENT (on camera): I'm Jean Casarez in Manhattan.

Mayor Bill de Blasio is announcing that New York City has administered almost seven million COVID-19 vaccinations. And now, in an effort to build tourism, they want to offer the Johnson & Johnson vaccine to any visitor that comes here.

The plan is to install mobile COVID vaccination sites at major tourist attractions around the city, like Times Square, the Empire State Building, the Brooklyn Bridge Park, the High Line, and even Central Park. But it's all dependent on a green light from the state.

MARTIN SAVIDGE, CNN ANCHOR AND CORRESPONDENT (on camera): I'm Martin Savidge in Atlanta.

If you live in Memphis or Shelby County, Tennessee and you get a COVID-19 vaccine, you could get something else -- a brand-new car. This week, local officials unveiled a sweepstakes which could leave one lucky person to win the choice of a sports car, pickup truck, sedan, or SUV. You have until the end of May to get at least one shot to have a shot at winning.

It's all part of an effort to get more people vaccinated in Shelby County where health officials say, so far, about a third of the people have received at least one COVID-19 vaccine. Sorry, proof of residency will be required.

ALEXANDRA FIELD, CNN CORRESPONDENT (on camera): I'm Alexandra Field.

As part of a major push to get more younger adults to get their shots, more and more companies are throwing in a free beer. Budweiser offering a free beer to anyone age 21 and up who shows proof of vaccination. A number of participating breweries across the state of New Jersey doing the same thing.

And in Connecticut, the governor announcing that participating restaurants will offer free drinks to people with proof of vaccination for the last two weeks of May.

TOM FOREMAN, CNN CORRESPONDENT (on camera): I'm Tom Foreman in Washington, D.C. where vaccination sites will be spreading the love this Mother's Day weekend. At a half-dozen sites, they will be giving free flowers and plants to the first 51 people who show up.

It mixes well with a plan by the mayor to promote the idea that people ought to get vaccinated for their colleagues, their friends, and especially their families. In fact, all month long the city will be giving free temporary tattoos to people who get vaccinated, saying "I love dad" and especially, "I love mom."

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ROMANS: All right, thanks to our reporters for that. That's how we get back to normal, folks -- vaccinations.

No songs, no dances, no costumes, and no work for more than a year. But now with Broadway scheduled to reopen in September, the heart of the theater industry in New York City is coming back to life and giving local businesses hope.

Our Vanessa Yurkevich spoke to the people affected most and she joins us this morning live from Times Square. You know, when the -- when the lights went out on Broadway it was just heartbreaking. And so many people have been waiting -- even leaving the city because there wasn't work for them. Is it going to come back to life as we -- as we know it?

[05:40:07]

VANESSA YURKEVICH, CNN CORRESPONDENT: Well, we hope so. And as you mentioned, they say the lights never go out on Broadway, but look behind me. This marquee of "Hamilton" -- it is completely dark and it's been that way for over a year.

You know, New York City got really hit bad economically. Hundreds of thousands of jobs lost, including an estimated 100,000 Broadway jobs where people have been out of work for more than a year. But, you know, the thing is the governor recently has made announcements about reopenings May 19th. Capacity restrictions will lift, including at theaters just like this one behind me.

We spoke to a restaurant owner just down the street who actually opened during the pandemic but only because another restaurant closed. She says it's been really tough but this good news of reopening is making her feel hopeful for the first time in a long time.

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JASMINE GERALD, OWNER, JASMINE CARIBBEAN CUISINE: Wednesday nights was like Broadway night, so people would come on Wednesday night and then they would eat, and then they would go to Broadway. Now, Wednesday nights are like one of the slowest nights.

So I know when Broadway opens, definitely, tourists are going to come. Definitely, people are going to come out more and they're going to eat and they're going to enjoy the good food at our restaurant.

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YURKEVICH: And that's so key to note that the tourism is so crucial to this area -- to Broadway. A lot of the city is reopening a little bit faster, but Broadway has been behind because of the lack of tourists. One way to track that is Broadway ticket sales, which actually just started going on sale yesterday. So looking at how those sales pick up could be an indicator in terms of how people feel about coming back.

Broadway shows are still targeting September 14th for that opening. And Christine, it's really interesting. That's about the same time that the enhanced unemployment benefits run out for Americans and so many of these Broadway workers have been on those benefits -- relying on them until these shows can get back up and running -- Christine.

ROMANS: All right, Vanessa. Thank you so much for that reporting -- Laura.

JARRETT: All right. One of Florida's most important industries could soon take a hit. Norwegian Cruise Lines says it might pull ships from Florida if it's not allowed to check passengers for COVID vaccinations.

Now, Republican Gov. Ron DeSantis signed a bill into law this week that prohibits businesses from requiring proof of vaccination. Yet, the CDC says cruise ships must have 98 percent of crew and 95 percent of its passengers vaccinated in order to resume back to normal.

ROMANS: All right. New this morning, Alabama could become the 37th state to legalize marijuana in some fashion. The State Legislature approved a bill late Thursday that would legalize the use of marijuana for nearly a dozen different medical conditions. It got bipartisan support and is now on its way to the governor's desk. Her office says it is an emotional issue and she will review it.

We'll be right back.

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[05:47:05]

JARRETT: Welcome back.

As India's COVID crisis deepens, neighboring Nepal is growing overwhelmed as well. After canceling the 2020 climbing season on Mount Everest, Nepal, this year, issued a record number of permits to scale the peak. But so far, COVID infections have forced the evacuation of dozens of people just casting doubt on the safety of climbers and locals.

Meantime, India remains caught in the grip of an escalating humanitarian tragedy. CNN's Clarissa Ward is on the ground in Varanasi, India -- the most holy site in the Hindu faith. Clarissa, tells us what you're seeing there and the significance of the cremations there.

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: So, Laura, as you said, Varanasi, India's holiest city -- this is a deeply sacred spiritual place. People here believe that if you die and your ashes are scattered in the River Ganges that you'll be taken out of the endless cycle of life and rebirth.

But even people from this city, where death is part of the fabric of life, have been just shocked by the incredible toll that this vicious second wave of coronavirus has taken on the people of this city.

Behind me is the main crematorium. It's used to seeing a steady flow of bodies being brought in every day to be cremated.

But one of the people who works here, and has for generations, told us they've never seen anything on the scale of the number of bodies that have been coming in during this second wave of COVID-19. He told us 100 to 150 bodies being brought in every day. The problem got so bad that they actually ran out of wood. Wood, of course, is an essential component for creating those funeral pyres that are burned during a cremation.

It does appear that things are abating somewhat, but still a very serious situation in one of India's hardest-hit cities, Laura.

JARRETT: And Clarissa, there is technically still a lockdown in place there but is it working at all, or was it put into place at a time when it just was too late?

WARD: So that's a really good question. Essentially, critics of the government here say that the lockdown was just too little, too late. It was fully implemented last Friday. It's just now been extended until Monday.

But it doesn't really resemble the kind of lockdown that you might be used to seeing in New York. The streets are still, especially in the mornings, fairly crowded. There was actually a wedding in the hotel that we were staying in last night. If you go into some of these temples you'll find a lot of the Sadhus -- the holy men -- are not wearing masks.

Now that said, there does appear to have been a definite dip in the numbers. It's very difficult to trust the government figures because they appear to be far lower than the reality on the ground.

[05:50:03]

But even talking to that man -- Machu Chowdhury (ph), who I mentioned -- whose family has been working in this crematoria for many generations -- he said they're definitely seeing a steady decline in the numbers.

But the real concern is the minute they lift that lockdown -- and there is a lot of pressure to lift it for economic reasons -- that you'll see another massive spike. And nobody here wants that to happen, Laura.

JARRETT: Yes, of course, not -- not now, especially.

All right, Clarissa. Thank you so much for all of your reporting, as usual.

Overnight, a surprising announcement from Atlanta Mayor Keisha Lance Bottoms. She says she will not run for reelection in November. She's been seen as a rising star in the Democratic Party and she was reported to be on President Biden's shortlist for a running mate.

In a letter posted online, Bottoms writes this. Quote, "My ancestors, direct descendants of the once enslaved, traveled by horse and buggy from the cotton fields of east Georgia in search of a better life for themselves and their children in Atlanta. I have carried their belief for a better tomorrow in my heart."

ROMANS: A dramatic end to an hours-long hostage standoff at a Wells Fargo branch in Minnesota. The final hostage makes a run for it and barrels through the front door before tactical units swarm the place and take the suspect into custody.

Police say Ray McNeary is a disgruntled customer upset about a transaction -- earlier transaction. Thankfully, no one was hurt and the St. Cloud police chief called this the best possible outcome.

JARRETT: I'm glad everyone is safe there.

All right. An Army trainee at Fort Jackson in South Carolina is in custody after police say he hijacked a school bus filled with students. Video released by the Sheriff's Department shows the man boarding the bus there and pointing a rifle at the driver and telling him to close the door and drive -- so scary. The sheriff says the man later let the 18 kids and the driver go.

Jovan Collazo now faces charges, including kidnapping and armed robbery.

A sixth-grader is in police custody after pulling a handgun from her backpack and opening fire at a middle school in Rigby, Idaho. Two students and one adult suffered non-life-threatening injuries. A teacher was able to disarm the student and detain her until police arrived. Officials do not have a motive for that shooting.

ROMANS: All right, let's get a check on CNN Business this Friday morning.

Looking at markets around the world to end the week, Asian shares closed mixed for the week now, and European shares have opened just barely mixed here.

On Wall Street, stock index futures leaning higher, building on a rally on Wall Street Thursday amid signs the labor market in the U.S. is recovering. The Dow hit a record high. The S&P 500 and the Nasdaq also higher.

And China's trade with the U.S. grew last month as demand for Chinese goods soars. Exports rose 32 percent from last year; imports rose 43 percent.

South Carolina is now joining Montana, by the way, in ending those extra jobless benefits of $300 a month. The state is citing a shortage of workers. The labor department there says there are more than 81,000 open positions. The move takes effect June 30th.

A critical report out in just a few hours will show how much the labor market still has to recover. Just one year ago -- one year ago, more than 20 million jobs vanished in a single month. Now, economists predict 978,000 jobs were added back this April and the jobless rate likely fell below six percent. There's one estimate out there as high as two million jobs added back to the economy, so watch this space.

But remember, the economy still has a lot to go to be healed. Even if these numbers hold, the economy is still down more than seven million jobs since February of last year. Economists say now worker shortages in several industries could put pressure on wages to rise. We might see that in today's report.

In the red-hot housing market, mortgage rates are starting to fall again. The average 30-year mortgage rate fell slightly over the past week, marking three straight weeks below three percent for a 30-year fixed-rate loan.

The dip is good news for homebuyers looking to lock in a low rate. They're facing strong demand and historically low inventory. The number of available homes in April dropped by 40 percent from a year ago, driving prices up, Laura, 20 percent from last year. The price of a home has been just something --

JARRETT: Wow.

ROMANS: -- in this COVID environment.

JARRETT: All right, you might call this one a crime for the times. An Ohio state senator caught zooming and driving. That is Andrew Brenner in the -- in the box there on the right at a virtual state board meeting this week. While it appeared he was in his home office, one thing gave it away. There was a seatbelt strapped across his chest.

And get this -- it all went down, Christine, on the same day that Ohio lawmakers introduced a new distracted driving bill that would ban Zooming while driving.

You can see in a different picture there he has his background with plants and everything, trying to pass it off. The seatbelt gave it away.

ROMANS: You can -- it's had to hide the truth on Zoom.

JARRETT: Yes, there's just a lot of multitasking going on.

ROMANS: Thanks for joining us, everybody. Have a great weekend, everybody. I'm Christine Romans.

[05:55:01]

JARRETT: I'm Laura Jarrett. "NEW DAY" is next.

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JOHN BERMAN, CNN ANCHOR: I'm John Berman alongside Brianna Keilar on this new day.

Just a short time from now one of the most highly anticipated jobs reports over the last year. Why it's expected to be a blockbuster report and proof of America's comeback.

Plus, a Capitol rioter wants to call his mom, while another says he watched too much Fox, leading him to the insurrection.

BRIANNA KEILAR, CNN ANCHOR: The Trump loyalists campaigning to.