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Early Start with John Berman and Zoraida Sambolin

WaPo: Manhattan D.A. Convenes Grand Jury to Hear Trump Case; Pompeo-Led Effort to Prove Lab Leak Theory Shut Down By Biden; Official Tokyo Olympics Partner Calls for Games to be Cancelled; GOP Negotiators to Offer Counterproposal on Infrastructure; Sports World Pays Tribute to George Floyd One Year Later. Aired 5-5:30a ET

Aired May 26, 2021 - 05:00   ET

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

[05:00:23]

CHRISTINE ROMANS, CNN ANCHOR: A grand jury now seated. Will it weigh criminal charges against Donald Trump, his company or his inner circle?

LAURA JARRETT, CNN ANCHOR: A secret probe of the origins of COVID. It started under Trump, so why did Biden shut it down?

ROMANS: And can the games go on? An official partner of the Tokyo Olympics now calling for Japan to pull the plug.

More -- welcome to the -- our viewers in the United States and around the world. More on that sorry in a moment. We have reports this morning from London, Berlin, the State Department, Jerusalem, Moscow, Tokyo, of course, and Capitol Hill.

This is EARLY START. I'm Christine Romans.

JARRETT: That is a mouthful.

I'm Laura Jarrett. It's Wednesday, May 26. It's 5:00 a.m. here in New York.

And we begin this morning with the most significant news to date in the criminal investigation into the former President Donald Trump. "The Washington Post" reports Manhattan's district attorney has convened a grand jury that's expected to decide whether to indict Trump or other executives at his company or the Trump Organization itself.

The key for prosecutors now, gaining cooperation from Allen Weisselberg, the long-time chief financial officer of Trump's company. Last week, his former daughter-in-law who has turned over documents to investigators offered her prediction.

(BEGIN VIDEO CLIP)

JENNIFER WEISSELBERG, TRUMP ORG. CFO'S FORMER DAUGHTER-IN-LAW: As far as I'm concerned, there has been nothing legal going on in the past 21 years. ERIN BURNETT, CNN HOST, "OUTFRONT": Will Allen Weisselberg flip on

Trump?

WEISSELBERG: Yes.

(END VIDEO CLIP)

ROMANS: So if Weisselberg flips, that would be major, of course, and devastating for Trump. So what is he saying this morning?

CNN's Kara Scannell reports.

(BEGIN VIDEOTAPE)

KARA SCANNELL, CNN REPORTER: "The Washington Post" reporting that the Manhattan district attorney's office has convened a special grand jury to hear evidence in its long-running investigation of Donald Trump and the Trump Organization. The empanelling of the grand jury marks a significant turn and suggests prosecutors believe they have some evidence of a crime.

According to "The Post", the grand jury will sit three days a week for six months, it will also hear other cases and it's not exclusively focused on the Trump investigation. But the sitting of a special grand jury is a sign that the investigation is advancing and prosecutors are closer to deciding whether to seek potential criminal charges.

The D.A.'s investigation has been under way for several years, prosecutors are investigating numerous potential crimes including tax fraud, insurance fraud, also whether the Trump Organization inflated the value of certain properties to get loans, falsified business records or broke the law when reimbursing Michael Cohen for facilitating hush money payments to Stormy Daniels, the woman who said she had an affair with Trump which he has denied.

Late Tuesday, Trump said the investigation is purely political, adding, it is a continuation of the greatest witch-hunt in American history -- Christine, Laura.

(END VIDEOTAPE)

JARRETT: Kara Scannell, thank you for that.

Well, mounting questions this morning about the origins of coronavirus and who knew what and when. CNN has learned there was a secret effort at the State Department to prove the virus originated in a lab in Wuhan, China. The mission started under the watch of former Secretary of State Mike Pompeo.

So why did the Biden administration shut the project down?

Our Kylie Atwood reports from the state department.

(BEGIN VIDEOTAPE)

KYLIE ATWOOD, CNN NATIONAL SECURITY CORRESPONDENT: This was a closely held inquiry at the State Department which was launched in the final months of the Trump administration to look at the likely possibility, according to sources, who were involved in the effort that the COVID- 19 pandemic could have come from a Chinese lab and possibly had connections to the Chinese government's biological weapons research and development program.

Now, I am told by the Biden administration that they reviewed this effort, but they had concerns about the quality of the findings. A State Department spokesperson told me that the effort was shut down recently after the findings were reviewed in February and March of this year.

Now, this was quite a dramatic effort here at the State Department because there were those who supported the effort saying that the rest of the U.S. government as far as they knew were not probing the lab leak theory, the possibility that COVID-19 came from a lab and this needed to be done at the State Department.

But then there were those who were opponents of this effort, saying it was secretive, saying that those involved were sharing their findings in interagency settings before sharing their findings with folks at the State Department and that they were chasing a certain outcome here. But this revelation and the fact that the shut this down comes as there has been renewed interest in the lab leak theory.

Now, the U.S. government still says they do not know when, where or how COVID-19 originated, began spreading.

[05:05:03]

But there are renewed folks who are saying that the lab leak theory, that possibility, deserves some new attention -- Laura and Christine.

(END VIDEOTAPE)

ROMANS: All right. Kylie, thanks for that.

Another sign of trouble for the Tokyo Olympics, one of the official partners of the games is now joining calls for cancellation.

CNN's Selina Wang live at that company's headquarters with more.

Hi there.

SELINA WANG, CNN CORRESPONDENT: Hey, Christine, the symbolism here is what's key. This is the first major newspaper in Japan to call for a cancellation and also an official Olympic sponsor. The real question is whether this leads to a domino effect allowing other major sponsors to speak out.

And this editorial that this newspaper wrote was scathing. It asked the question of what is even the point of the Olympics if it's being held against the will of the people and if it's putting people's lives in danger.

It wrote, quote, we don't think it makes sense to hold the Olympics and Paralympics in Tokyo this summer. The distress and opposition toward the ruling government, the Tokyo government and Olympic officials are widespread as they haven't tried to address people's doubts and concerns.

And, Christine, as we spoke yesterday, this follows the U.S. State Department warning Americans to avoid travel to Japan, you now have U.S. public health experts adding to these concerns saying that there needs to be an urgent risk assessment of the risks associated with the games, they say it's not just the risk of getting COVID in Japan and spreading it here, but also spreading new variants around the world when these athletes return to their home countries and that concern tracks with what doctors are saying here, just 2 percent of the Japanese population has been fully vaccinated.

Doctors in some parts of the country are calling that there could be a system collapse. Potentially further adding strains to this already overstretched medical system in Japan, a new report from the British association of sustainable sport is saying that the intense heat and humidity during the summertime in Tokyo, which is getting worse because of climate change, could put Olympic athletes in the danger zone.

Now, in 2018, more than 1,000 people died in Japan because of a heat wave so real concerns here and it's not just COVID, Christine.

ROMANS: All right. So, Selena for us in Tokyo, thank you so much for that.

You know, here in the U.S., there's a vaccination milestone. Half the country's adult population fully vaccinated against COVID-19. According to CDC data, almost of 60 percent are vaccinated if you include people eligible age 12 and up.

And there's good news for Moderna on that front. The company says its vaccine is safe and appears effective in adolescents. It will apply for FDA authorization in early June.

JARRETT: But there's the problem -- young Americans are not lining up for their shots, at least not so far. The CDC says under 8 percent of 18 to 24 year olds have done so thus far. Experts say young people still need to get vaccinated and warn even if the risk of serious illness from COVID is low, they still face long-term symptoms if they get infected.

ROMANS: And if they're going on campus this fall and many colleges they're going to be required to.

Cleaning up and heading out, vaccinated and emerging from our COVID bubbles, the masks are coming off and the lipstick is back on. Lipstick sales hit $34.2 million in the four weeks ended April 18th. That's up 80 percent from last year, still short of pre-pandemic levels, not quite where it was before COVID but making up ground quickly.

And, guys, it's not subtle. Este Lauder said expect to see bright pink, orange, magenta and purple this summer. The company has been preparing for a makeup renaissance for the past six months.

"The Wall Street Journal" put it this way: Americans are cleaning up nicely. They're buying teeth whitener, nail polish, deodorant and new luggage, too. Vaccines are the gateway to normal after 15 months of doing everything at home, a vaccinated 2021 means going out to birthday parties, concerts, confirmations, vacations, with the grooming products to go with it.

Walmart, Macy's, Target and other retailers report strong sales for the first quarter. Vaccinations mean busier social calendars. Target's CEO said customers are more optimistic, CEOs say customers still have a little money in their pocket from those rounds of stimulus checks.

So it's a boom for looking good, but a bust as we told you yesterday for hand sanitizer. The market is so flooded with the stuff retailers are slashing prices to get it off the shelves, Laura.

JARRETT: I'm okay with lipstick but I'm still not so sure about heels all the time, Christine.

ROMANS: I know. I've been enjoying wearing jeans. What you don't know is Laura and I wear jeans every day.

JARRETT: Or soft pants as I call them.

ROMANS: Soft pants.

JARRETT: All right. Still ahead, why did the GOP finally decide, finally decide, to condemn Marjorie Taylor Greene? Why else? Follow the money. That's next.

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[05:13:40]

ROMANS: All right. Negotiators reaching a pivotal moment in the infrastructure talks, how much it could cost, how to pay for it, the subject of intensifying negotiations.

CNN's Daniella Diaz live on Capitol Hill.

And President Biden from day one has said this is all open for negotiations, so where are they now?

DANIELLA DIAZ, CNN CONGRESSIONAL REPORTER: Yeah, President Joe Biden has always been open to working with Republicans and that is clearly what's happening in this case. It's crunch time. You know, Republicans and Democrats are trying to reach a deal on infrastructure before Memorial Day weekend, which is approaching, and before the Senate goes to recess.

You know, on one hand, you have this group of Republican senators that is going to propose a new infrastructure proposal to President Joe Biden on Thursday, much less than the $1.7 trillion price tag that they had -- that the White House had proposed to them, this will likely be $1 trillion. But these senators led by Shelly Moore Capito of West Virginia said that President Joe Biden has already expressed an openness to this $1 trillion price tag.

And then on the other hand, you have a bipartisan group of moderate senators, Democratic and Republican senators, led by Senator Mitt Romney of Utah who are working on a framework proposal for an infrastructure package and trying to find ways to pay for it not with corporate tax hikes. You know, one of the ways they are looking at this to pay for it is creating a fund to provide capital for water, electric and other projects.

[05:15:06]

They're also looking at indexing the price of gas to inflation and charging electric vehicles for the miles they drive. And they're also looking at using funding that was allocated during COVID relief bills, but has remained unspent.

So the big bottom line here is that they're race to go try to reach a deal, try to reach a proposal with the White House before this Memorial Day weekend approaching and they go to recess -- Christine, Laura.

ROMANS: All right. Daniella Diaz, we will be watching closely. Thank you.

JARRETT: All right. Five days, five days, that's how long it took for House Republicans to finally speak up about what is going on with Congresswoman Marjorie Taylor Greene.

On this program, our aim is to get you the information you need to start your day. We do not fall for the outrage trap where minor members of Congress try to get attention by saying something absurd or racist or crazy and try to fund raise off of it, but this is different. We feel compelled this time to be on the record that Republican leadership taking five days to address Greene's blatant anti-Semitic comments is something you need to know.

Greene, Greene is the one comparing Nancy Pelosi's mask mandate to the holocaust and then, by the way, she's doubling down on it. She's comparing the minor inconvenience of wearing a mask to protect your health to the yellow star which to be clear Nazis used as a way to publicly identify, humiliate, isolate and exterminate 6 million Jews.

ROMANS: Five days for leadership to come together and figure out how to respond to this minor member of Congress, yet Kevin McCarthy couldn't just say Greene was wrong, did he that other thing we don't like to do in this program, he invoked the false equivalency, he blamed Pelosi and Democrats for ignoring a rise in anti-Semitism.

So why did the House GOP leader finally speak? Money.

CNN's Jamie Gangel reports Republican donors urged him to speak up and some want Greene expelled from the conference. At least one House Republican publicly agrees.

(BEGIN VIDEO CLIP) REP. ADAM KINZINGER (R-IL): What we can do as a party is take a stand and say you don't belong in our conference. That's what I think we should do. I think we should kick her out of the conference. If there was a kind of organic within the conference movement to oust Liz Cheney certainly we can have the same kind of movement to oust somebody that, you know, is trying to compare wearing a mask to the Nazis.

(END VIDEO CLIP)

JARRETT: So why wouldn't McCarthy just expel her? Well, that's easy, Donald Trump. McCarthy wants to stay on Trump's good side and the former president supports Greene.

How did McCarthy's push back go over with her? Well, Greene retweeted, then deleted this from a supporter, I will let you look at it for yourself, who called McCarthy a, quote, moron and a feckless C word. That's how low this has gone.

ROMANS: Nothing but class.

All right. On the one-year anniversary of George Floyd's death, Kristen Clarke became the first black woman to head up the Justice Department's Civil Rights Division. The Senate narrowly confirming Clarke by a 51-48 margin, with Senator Susan Collins of Maine the only Republican to support her.

At the DOJ, Clarke will be in charge of investigating police abuses and enforcing voting rights laws and other federal statutes prohibiting discrimination.

JARRETT: The richest black neighborhood in America ripped apart by a violent white mob in Tulsa. Uncover the hidden story you need to know. The CNN film "Dreamland: The Burning of Black Wall Street" premieres Monday at 9:00 p.m. Eastern, only on CNN.

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[05:22:56]

ROMANS: All right. Athletes and sports teams across the country paying tribute to George Floyd on the one-year anniversary of his death.

Andy Scholes has this morning's "Bleacher Report".

Hi, Andy.

ANDY SCHOLES, CNN SPORTS CORRESPONDENT. Yeah, good morning, Christine.

George Floyd changed the world. Those were LeBron James' words last night after the Lakers win as players and teams across the country remembered Floyd on the one-year an verse of his death.

The Minnesota Twins, they held a moment of silence before last night's game against the Orioles as members of the Twins organization lined up along the warning track at target field wearing end racism t-shirts.

Now, teams all across the NBA also holding a moment of silence before their game. The Seattle Storm of the WNBA wearing shorts with the words "call your senators" in support of the George Floyd Justice in Policing Act.

And LeBron saying after his game that he fully supports the bill and he reflected on the one-year anniversary last night.

(BEGIN VIDEO CLIP)

LEBRON JAMES, LOS ANGELES LAKERS FORWARD: The man literally changed the world, you know, and, you know, it's unfortunate obviously that his family has to, you know, grieve and still, you know, ask questions of why, there is an angel looking over all of us, looking over all these black kids in the black community and, you know, his family, you know, I continue my well wishes to them.

(END VIDEO CLIP)

SCHOLES: As for the game, Lakers trying to even their series with the Suns at a game apiece. LeBron and Anthony Davis coming through in the final minutes, laying the board. Davis a huge three to put L.A. up by six. Under a minute to go LeBron seals the win with a deep three. Lakers get the victory 109-102. Game three of that series, tomorrow night in L.A.

In the meantime, Luka Doncic dominating the Clippers again. He was shooting one-legged fade away threes at one point. Luka scoring 39 points as the Mavs beat L.A., 127-101 to take a 2-0 lead in the series.

Clippers now lost five straight playoff games dating back to last season. Game three of that series, Friday in Dallas. Three for games tonight including a doubleheader on our sister channel TNT beginning with Hawks and Knicks at 7:30 Eastern.

[05:25:01]

SCHOLES: Finally, Cleveland pitcher Zach Plesac ends to the injured list with a broken thumb in truly bizarre fashion. Manager Terry Francona told reporters the right-hander suffered the injury while rather aggressively ripping off his shirt and catching it on a chair. It's not known how much time Plesac is going to miss.

I'm sure he's going to be a little more careful next time he changes his clothes, Laura, because you can now file this one away in the bizarre injury file. Ripping off your shirt too aggressively, that's a new one, never heard that one.

JARRETT: Got to be careful.

All right. Andy, thank you. Appreciate it.

SCHOLES: All right. JARRETT: Purely political. Former President Trump firing back after the investigation into his company and potentially himself enters a new phase. Why a grand jury could signal charges could be on the way.

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