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Early Start with John Berman and Zoraida Sambolin

Israel-Gaza Conflict Intensifies Amid Calls For Ceasefire; Japanese Protesters Oppose Summer Olympics Amid Pandemic; Gaetz Associate Greenberg Pleading Guilty And Cooperating With Feds. Aired 5:30-6a ET

Aired May 17, 2021 - 05:30   ET

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

[05:30:00]

CHRISTINE ROMANS, CNN ANCHOR: In fact, new airstrikes by the Israeli Air Force resuming early this morning.

You can see Israel's Iron Dome defense system on the left preparing to intercept rockets from Hamas on the right.

LAURA JARRETT, CNN ANCHOR: The latest Israeli offense coming in response to thousands of rockets that have been launched from Gaza, which is controlled by Hamas.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: We are targeting a terrorist organization that is targeting our civilians and hiding behind their civilians, using them as human shields. We're doing everything we can to hit the terrorists themselves.

We're not going to just let them get away with it and neither would you. I mean, can you just imagine what would have happened if you had 2,900 rockets fired on Washington and New York and others. I think you would understand our position.

RIYAD AL-MALKI, PALESTINIAN FOREIGN MINISTER: Israel keeps telling you put yourselves in our shoes. This is what they say all the time. Put yourself in our shoes. But Israel is not wearing shoes; it is wearing military boots.

(END VIDEO CLIP)

JARRETT: Nic Robertson joins us live from near the Israel-Gaza border. Nic, Netanyahu is digging in, but broaden out this discussion. How can this conflict end even with all of the bloodshed, and what are the ramifications throughout the region?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Well, Egyptian authorities would be the front end of trying to talk to Hamas to deescalate from their side and be an intermediate. It's probably working with the United Nations and probably working with Qatar as well to try to bring a resolution. You'd expect to see some sort of temporary window of agreement where there will be a cessation on both sides of strikes, but we don't seem to be at that point.

Egyptian officials are engaged in trying to bring about that cessation in hostilities but it's not happening. And I think indicative of that is what we heard from the prime minister saying that he does expect to continue the offensive against Hamas targets continuing. I'm hearing right now what sound like airstrikes landing in Gaza. We've heard intercepts from Iron Dome a few minutes ago.

So when you look at the big diplomatic picture, I think that where there might have been a little bit of hope over the weekend with the U.N. -- with the meeting at the United Nations, with this sort of effort -- Hady Amr, the U.S. envoy, being in the region here, being in Israel, having meetings here to try to deescalate the situation -- though it felt like a momentum over the weekend to bring the situation down a little.

But I think where we stand Monday morning now it does seem to be clear that we're not at that moment of pause. And just from what we've been able to see driving around the outskirts of Gaza where there are a number of Israeli Defense Force positions, you get the sense that those positions -- that they're on a slightly higher level of alert than they were a couple of days ago.

So I think this speaks to the fact that this conflict isn't over. There's pressure on Israel to open the border crossings into Gaza -- pressure from the European Union and from others -- international pressure for both sides to deescalate.

But I have to say, this Monday morning, different from yesterday. That moment of cessation doesn't feel like it's imminent.

JARRETT: And just as you're talking we're watching children being pulled from the rubble here, so just horrifying images.

Nic, thank you for your analysis, as usual.

President Biden is facing a widening rift within his own party over his response to the conflict.

Our Jasmine Wright is live at the White House on this part of the story. Jasmine, obviously, he has to toe the line here but you're already seeing sort of a subtle shift in some language.

JASMINE WRIGHT, CNN WHITE HOUSE REPORTER: That's exactly right and that comes from a really renewed urgency when the White House is approaching the situation in Israel.

We saw President Biden respond to that leveling of the A.P. building -- that building that housed the A.P. and other network outlets on Saturday when he called Prime Minister Benjamin Netanyahu, of Israel, for the second time in four days. And for the first time in his presidency, he called the prime minister of the Palestinian Authority, really to talk about it.

And in those readouts we notice a small shift in language. But it was important because, for the first time, he expressed concern. In the readout from his conversation with Netanyahu on Thursday that word didn't appear, as well as Palestinian and the civilians. Because officials told CNN that White House officials are becoming more concerned about the fallout and the worrisome about civilian deaths.

Now, yesterday, President Biden spoke in prerecorded remarks about marking the end of the Ramadan celebration, but he only fleetingly made a reference to the conflict. Take a listen.

[05:35:03]

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: We also believe Palestinians and Israelis equally deserve to live in safety and security and enjoy an equal measure of freedom, prosperity, and democracy. And my administration is going to continue to engage Palestinians and Israelis and other regional partners to work towards sustained calm.

(END VIDEO CLIP)

WRIGHT: So that is the president's stance publicly. Behind the scenes we know that he's making calls and also top officials really working with partners in the region to try to come to some ceasefire.

And that is as the president faces letters from Democratic lawmakers. In a bipartisan letter from a Democrat and Republican asking the president to weigh in more. To do more so that they can come to some type of ceasefire.

But, of course, U.S. officials know that what the president can do is limited. They don't -- they won't be really talking directly to Hamas because they believe that is a terrorist organization, and so they're trying to work through their partners to kind of assuage some type of resolution. Of course, they have an envoy down there now trying to come it. Tony Blinken is making calls. So really, it is an all hands deck on approach.

But still, the president is making sure that folks understand that he is on the side that Israel can defend itself --

JARRETT: Right.

WRIGHT: -- but is worried about these casualties.

JARRETT: Yes, not an easy task.

Jasmine, thank you so much.

ROMANS: All right, here to the U.S. now.

It's not as simple as mask on-mask off when it comes to the CDC's new mask policy. Of course, the CDC now says vaccinated Americans don't need to wear a mask. But retailers are finding there are a lot of asterisks to this new policy. Some stores have loosened restrictions, but some states still have mask mandates and that makes it confusing for customers.

Let me break it down for you.

Starbucks and Publix joined Costco, Trader Joe's, and Walmart, saying fully vaccinated customers will not be required to wear masks in their stores unless (asterisk) there is a state or local mandate. So it depends across the country.

Starbucks' new policy begins today. Walmart sent a letter to its employees encouraging them to get vaccinated, adding fully vaccinated workers will be able to work without masks starting May 18th -- fully vaccinated workers.

Over the weekend, Universal Orlando, Disneyworld, Sea World, and Busch Gardens all said guests do not have to wear masks outdoors. Guests at Disney still have to wear masks when they enter the park, on all the rides, at indoor restaurants, and on the transportation -- all transportation there at Disney.

Now, some retailers, including Apple, CVS, and Target, are still evaluating the CDC's guidance.

And, Laura, it's confusing here. I was carefully reading the Costco note to customers --

JARRETT: Yes.

ROMANS: -- and it says if you live in a state without a mask mandate you don't have to wear a mask if you are fully vaccinated. However, there's no way for them to check --

JARRETT: Right.

ROMANS: -- on other customers, so they're asking for people to be personally responsible and being sort of patriotic about this. If you're not vaccinated don't come in here without a mask.

JARRETT: Yes. They're basically hoping for the honor system and we have seen how --

ROMANS: It's the honor system.

JARRETT: -- that failed us for over a year.

ROMANS: I know. But even then, if you go to the optical department, the pharmacy, the hearing aid center, you have to wear a mask.

JARRETT: Right.

ROMANS: So my advice to people, ditch the mask if you are fully vaccinated but put it in your back pocket or your purse because there will be -- there will be times you need to use it.

JARRETT: Yes -- have it handy.

All right. This morning, protests in Tokyo where a growing number of people want the Summer Olympics canceled.

Selina Wang live at a protest site in Tokyo. Selina, what are you hearing there?

SELINA WANG, CNN INTERNATIONAL CORRESPONDENT: Hey, Christine and Laura.

The protest actually doesn't start for another 30 minutes, but you already see a pretty sizable group forming behind me. They are chanting for the Olympics to be canceled. They're holding massive posters that say "No Olympics" with some of them with photos of the Olympic flame being extinguished.

Now, I spoke to several of the protesters, including one man who lost his job during the pandemic. He says these games absolutely should not be held when so many people around the world are still suffering. He said he's not confident that the government can keep their citizens safe. I spoke to another protester who said that hosting the games this summer would be inhumane.

Now what's happening here really reflects the mounting public frustration here on the ground. According to local polls, the majority of people here in Japan think these games should be canceled. In just nine days, a petition online calling for these games to be canceled received more than 350,000 signatures.

Even a group of doctors petitioned the government to cancel the games, saying it is impossible to hold a safe and secure Olympics when COVID- 19 cases are surging here in Japan and when large slots of the country are under a state of emergency, and with just about one percent of the population is fully vaccinated.

But despite all of this public opposition, the real decision-makers here -- the IOC -- insists that these games will go ahead as planned. And the World Athletics president also recently made similar comments. Take a listen here.

(BEGIN VIDEO CLIP)

SEB COE, PRESIDENT, IAAF: Should we have the games? Yes, we should. Can we have them safely and secure? I believe we can. I'm not cavalier about that.

[05:40:05]

UNIDENTIFIED FEMALE: So that didn't answer my question. How confident are you that the games will kick off as planned 10 weeks from today?

COE: Oh, I'm confident -- no -- sorry, I'm confident that they will be taking place. Everybody is determined to do that.

(END VIDEO CLIP)

WANG: But those comments from the World Athletics president couldn't be any more different than what I'm hearing here on the ground, including from corporate leaders. I just spoke exclusively to the Rakuten CEO. It's a tech giant here in this country. That CEO told me hosting the games this summer would amount to a suicide mission -- Christine, Laura.

JARRETT: Yes, the corporate angle to this is very interesting. And just a reminder -- the games are set to begin July 23rd, so not a lot of time here.

Selina, thank you.

ROMANS: To India now where an extremely severe tropical cyclone bringing critical COVID vaccination drives to a standstill. Making matters worse, the storm is forcing people together, only worsening the spread of the virus raging there.

As of this morning, new cases of COVID fell below 300,000 in India for the first time in 25 days but heavy rainfall could be slowing, actually, the testing data.

JARRETT: A Colorado man charged with murdering his wife is also now accused of using her mail-in ballot to cast a vote for President Trump.

Barry Morphew publicly pleaded for his wife Suzanne's safe return after she went missing last May. But then her ballot turned up at the clerk's office in the fall, prompting immediate alarm.

In an interview with the FBI, Morphew echoed Trump's false claims of election fraud, telling agents "I just thought give him another vote."

Suzanne Morphew's body has still not been found. He is being held without bail.

ROMANS: All right, there's one potential case of voter fraud in America.

All systems back to normal for Colonial Pipelines, delivering millions of gallons of fuel each hour after a cyberattack forced its network to shut down last week. The company says it is now servicing all markets but there are still widespread fuel shortages, folks.

In Washington, D.C., over 80 percent of gas stations still don't have gas. Both Carolinas and Georgia also now have significant shortages.

So, Gas Buddy reports weekly U.S. gasoline demand reached a new pandemic high last week. People topping off their tanks because of that Colonial Pipeline. So that's a run on gas, not necessarily a true supply crunch.

We'll be right back.

(COMMERCIAL BREAK)

[05:46:30]

(BEGIN VIDEO CLIP) REP. MATT GAETZ (R-FL): Now just imagine the irony here. I am being falsely accused of exchanging money for naughty favors, yet Congress has reinstituted a process that legalizes the corrupt act of exchanging money for favors through earmarks.

(END VIDEO CLIP)

JARRETT: Congressman Matt Gaetz in Ohio there, essentially equating charges of sex trafficking a 17-year-old girl to targeted spending in Congress.

Later today, one of his longtime allies is to set to officially plead guilty and agree to cooperate with prosecutors.

We get more now from CNN's Paula Reid in Orlando.

(BEGIN VIDEOTAPE)

PAULA REID, CNN SENIOR LEGAL AFFAIRS CORRESPONDENT (on camera): Good morning, Laura and Christine.

This morning, a close associate of Congressman Gaetz, former Florida county tax collector Joel Greenberg will appear in this federal court behind me where he is expected to plead guilty to six federal charges. Now, he was previously facing 33 federal charges but those have been reduced as part of a cooperation plea deal that he has entered into with the Justice Department.

Now, this is not good news for Congressman Gaetz to have such a close associate now cooperating with federal investigators. The congressman, we've learned, is under investigation for possible sex trafficking, prostitution, and allegations of having sex with a minor.

Now, Congressman Gaetz was not mentioned at all in the 80-page plea agreement that was revealed on Friday. But if you look at that agreement, really, the key paragraph is the fact that Greenberg is going to admit in court that not only did he have sex with a minor at least seven times, that he then introduced that minor to other men who also paid her for sex. And that is the key question in this case now. Who were those other men and will Greenberg name them to investigators? And, of course, will they be charged?

Now, Congressman Gaetz has denied any wrongdoing. He says that he has never paid for sex nor has he, as an adult, had sex with a minor.

And on Friday, his spokesman released a statement really attacking Joel Greenberg's credibility as a witness, and that is fair. In this plea agreement, Joel Greenberg admits to falsely accusing someone else of being a pedophile. He would be a very problematic witness.

But we know from our sources that investigators also have hundreds and hundreds of documents of various transactions. They're also working with other witnesses, so this case does not all fall to Greenberg.

Everyone will be watching in court this morning as this is the first time we'll have seen him since he flipped and agreed to cooperate with prosecutors -- Laura, Christine.

(END VIDEOTAPE)

ROMANS: All right, Paula in Orlando. Thank you so much for that.

A train derailment in Iowa causing evacuations within a five-mile radius because of hazardous materials. Officials say about 47 cars of the Union Pacific train derailed Sunday afternoon. They caught fire in the town of Sibley. That's just south of the Minnesota border. That derailment was caused, we're told, by a bridge collapse.

JARRETT: A suspect in Alabama is dead after alleging killing two people and shooting four police officers in a gunfight after a dispute over a dog. Police say the suspect killed the owners of the dog after an argument Sunday.

When the SWAT team arrived at the suspect's apartment with a search warrant he began firing. The officers fatally shot the suspect. None of the officers' injuries, we're told, are life-threatening.

ROMANS: Tennessee the latest state to target transgender students -- this time, over what bathroom to use. Governor Bill Lee signed a new bill into law requiring public schools make only reasonable accommodation for children who won't use a bathroom or locker room designated for their biological sex.

[05:50:04]

The Human Rights Campaign says the bill is squarely in defiance of federal law and flagrantly discriminatory.

JARRETT: All right, Christine, they found that tiger. The tiger that vanished a week ago in Houston is waking up in a new home this morning.

India the tiger was found over the weekend after police got a call from someone who knew the suspected owner's wife. Police say the suspect and his wife knew all along where the tiger was, contradicting their attorney.

The tiger has a new home at a sanctuary in southeast Texas where the director there said she expects India will adapt to her new surroundings.

(BEGIN VIDEO CLIP)

NOELLE ALMRUD, SENIOR DIRECTOR, BLACK BEAUTY RANCH: It's amazing how quick they adapt to not being around people. You know, they're wild animals. They go right back to being a wild cat. They do not show any adverse effects from not being around humans.

(END VIDEO CLIP)

JARRETT: The president of the Humane Society tweeted a photo of the tiger's removed collar, saying the cat won't be treated like a pet anymore. India the tiger will be on "NEW DAY" later this morning.

ROMANS: OK -- all right then.

Let's get a check on CNN business this Monday morning. Looking at markets to start the week, Asian shares closed mixed, but Tokyo down about one percent as all the drama over whether to continue the Olympics continues. You know, Asian shares closed mixed, but Europe opened lower.

On Wall Street, stock index futures this Monday morning also down just a little bit. That's not really convincing.

Investors will pay close attention to minutes from the Fed's last meeting. They're also looking for fresh insight into the consumer -- how the consumer is feeling. Walmart, Target, TJX, Macy's, Home Depot, and Lowe's will report their quarterly earnings this week.

Home improvement stores have been benefitting from rising lumber prices and, of course, that strong demand in what is a red-hot housing market. Home prices hit a record high in March and there simply weren't enough homes for sale. It is a sellers' market there. The average home sold in just 18 days. That's a record low.

Did the trend continue in April? Reports on both housing starts and home sales are also due this week.

Today is the official deadline to file your taxes, everybody -- your 2020 taxes. The filing deadline for federal and many state returns was pushed back to today to give -- to give filers more time and the IRS more time to go through all the big changes from the latest relief package.

Remember, stimulus checks are tax-free. Unemployment benefits are taxable but the first $10,200 in jobless benefits is exempt from families who made $150,000 or less last year.

Families could be sent more cash this summer with the expanded child tax credit but only if they file a return. So it's really, really important -- more important than ever to file a return. Accessing those benefits is why the IRS wants everyone to file this year even though people with income under a certain threshold aren't required to.

All right, big drama for two media giants over the weekend. Advanced talks here. AT&T and Discovery are expected to announce a deal to combine assets, including HBO Max and Discovery+. CNN would be included in that deal.

The deal could make the two companies better equipped to compete with Netflix and Disney in the streaming wars. Discovery's CEO predicted consolidation in an interview with CNBC last year, saying "If we put together our I.P. maybe we can compete with Disney."

It's unclear what the deal will look like. We'll be standing by to see if it is, indeed, merger Monday here today. Elon Musk moving Bitcoin again. Bitcoin's price fell over seven percent Sunday after Musk suggested Tesla may consider selling its holdings in the cryptocurrency.

One user said Sunday, "Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their Bitcoin holdings."

The Tesla CEO responded simply, "Indeed." One word, "indeed." That was like seven percent down on Bitcoin. Musk tweeted early this morning, "To clarify speculation, Tesla has not sold any Bitcoin."

The comments come just days after Musk said Tesla is suspending plans to accept Bitcoin as payment for its cars, citing Bitcoin's impact on the environment.

A lot of people on Wall Street wondering what's the -- where's the SEC and regulators and him just, you now, musing on Twitter and it moves markets. That's something regulators are -- clearly, a lot of investors want regulators to look at.

JARRETT: Yes, something to keep your eye on.

All right, Janet Jackson fans -- memorabilia brought in some big money this weekend. The singer sold her iconic "Scream" music video outfit for $125,000. Thousands of Jackson's personal items were auctioned in honor of her 55th birthday Sunday.

Kim Kardashian got in on the action, too, paying $25,000 for a custom outfit from the singer's "If" music video.

I would love to go to a Janet concert but I'm not sure that I would pay for an outfit like that that I certainly couldn't fit into for $25,000.

ROMANS: No. Twenty-five thousand dollars, I don't know. All right -- maybe college.

Thanks for joining us. I'm Christine Romans.

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

(COMMERCIAL BREAK)

[05:59:37]

JOHN BERMAN, CNN ANCHOR: I'm John Berman alongside Brianna Keilar.

On this new day, war. Civilians caught in the middle of the worst fighting between Israel and Hamas in nearly a decade. No end in sight. Now, dozens in Congress are demanding an end to it.

Plus, Americans grappling with when and where to keep their masks as stunning new maps show a divided America when it comes to vaccines.

BRIANNA KEILAR, CNN ANCHOR: And in the fallout of his divorce, new this morning, Bill Gates admitting an affair with an employee that reportedly got him booted from the board of Microsoft.