Return to Transcripts main page
Early Start with John Berman and Zoraida Sambolin
Kevin Spacey's Sex Assault Trial Begins In London; Supreme Court Rejects Trump-Backed Legal Theory; Riots Erupt In France After Police Shoot Teen. Aired 5:30-6a ET
Aired June 28, 2023 - 05:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[05:30:00]
JESS BIDGOOD, SENIOR NATIONAL POLITICAL REPORTER, THE BOSTON GLOBE (via Webex by Cisco): Constantly rethinking can I put this book on my syllabus?
CHRISTINE ROMANS, CNN ANCHOR: Right.
BIDGOOD: Can I teach this kind of history?
And it's really changed -- it's changed students' and teachers' lives in profound ways. But politically, it's been quite successful, and so I'm not sure whether or not it's going to change and perhaps we will even see more local candidates running on these issues and winning.
ROMANS: Yes, gender and race issues both seem to really have energized some of these folks on the right who are winning these school board seats and trying to change school policies.
Jess Bidgood, really excellent reporting. Thanks so much for getting up early for us.
BIDGOOD: Thank you so much for having me.
ROMANS: All right.
Right now, Kevin Spacey's sexual assault trial is getting underway in a London courtroom. Four men have accused the 63-year-old Oscar winner of sexual crimes dating back at least 10 years. Spacey has pleaded not guilty.
CNN's Salma Abdelaziz joins us live from London this morning. What is expected to happen today, Salma?
SALMA ABDELAZIZ, CNN CORRESPONDENT: So the trial just underway now. Important to note here that this is expected to take about four weeks, so don't expect any final results just yet.
Kevin Spacey showed up -- and I know you have those pictures of him walking into court, stepping out of that black cab -- showed up nearly two hours early if you can believe it. He is keen, he says, to prove his innocence. He has time and time again denied these charges vehemently and says that they have cost him his award-winning career. And he has welcomed this opportunity, he and his lawyers say, to see their day in court.
But make no doubt about it, these are some serious allegations. He is facing a dozen charges of sexual assault, including indecent assault and causing a person to engage in sexual activity without their consent. The incidents take place between 2001 and 2013. Four separate men -- four separate individuals coming forward with these charges.
Why London? Why is this taking place here? Well, Kevin Spacey was the artistic director of the Old Vic Theatre for several years here in London between 2004 and 2015. So these charges dating back to that time. These victims say he took advantage of his position. Kevin Spacey insisting that he is innocent.
Again, this will take weeks to clear up. But as you can imagine, all eyes now on the crown prosecution as they present their reason for these charges being put on Kevin Spacey.
ROMANS: All right, Salma. We know you'll be covering that trial for us. Thank you so much.
The Supreme Court has rejected a controversial legal theory pushed by Donald Trump and his supporters. It would have radically changed elections in the U.S.
CNN's Jessica Schneider takes a closer look at this case and what could lie ahead.
(BEGIN VIDEOTAPE)
JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT (voice-over): The Supreme Court rejecting an obscure legal theory that had the potential to upend federal elections. The justices were warned during arguments in December that if the court adopted the independent state legislature theory it could create election chaos.
NEAL KATYAL, ARGUED CASE BEFORE THE SUPREME COURT: The blast radius from their theory would sow elections chaos forcing a confusing two- track system with one set of rules for federal elections and another for state ones.
SCHNEIDER (voice-over): But Chief Justice John Roberts, writing the opinion in the 6-3 decision, upheld the authority of state courts to overrule election maps, laws, and rules put into effect by state lawmakers.
Backers of former President Trump pushed the conflicting independent state legislature theory after the 2020 election, claiming that because the elections clause of the U.S. Constitution says the legislature controls the times, places, and manner of holding elections, state courts had no authority to overrule state lawmakers.
But now, the U.S. high court has rejected that argument, spelling out how courts have throughout history been the final arbiters enforcing state and federal constitutions. The chief justice writing, "The elections clause does not insulate state legislatures from the ordinary exercise of state judicial review." KATHAY FENG, COMMON CAUSE: We beat back the most serious legal threat our democracy has ever faced with today's ruling in Moore v. Harper.
SCHNEIDER (voice-over): Voting rights advocates praised the decision, with former President Barack Obama even weighing in, writing, "This ruling is a resounding rejection of the far-right theory that has been peddled by election deniers and extremists seeking to undermine our democracy."
The decisions stem from a voting map dispute in North Carolina where the State Supreme Court initially struck down a congressional map drawn by Republicans who then appealed to the U.S. Supreme Court, saying their state's highest court had no right to step in.
But while this case was ongoing the partisan balance of the North Carolina Supreme Court changed and they ruled in late April that state courts have no role to play when it comes to policing election maps.
JOSH STEIN, (D) NORTH CAROLINA ATTORNEY GENERAL: So we know our general assembly is about to pass a bunch of ugly gerrymandered maps that are going to make it hard on voters.
SCHNEIDER (voice-over): And North Carolina's attorney general warns the U.S. Supreme Court's decision might not mean the end for state legislatures trying to meddle in federal elections.
[05:35:04]
STEIN: And when people have power they want to try to grab more power. And we see that with state legislatures across this country.
SCHNEIDER (on camera): Now, Chief Justice John Roberts did write in the opinion that although state courts can overrule state legislatures they don't have, quote, "free rein," and that could leave the door open to future litigation and lawsuits as we move into the 2024 election cycle.
Jessica Schneider, CNN, Washington.
(END VIDEOTAPE)
ROMANS: All right. In France, riots erupting this morning after a traffic stop ended with a teenager's death. I want to warn you here what you're about to see may be disturbing with video that shows two police officers beside a car in a Paris suburb just before the driver pulls away, then a shot is fired. Police say the 17-year-old boy refused to comply with a stop order. Authorities say an officer has been detained in this case.
CNN's Melissa Bell joins us live from Paris. Melissa, bring us up to speed here. What's happening now?
MELISSA BELL, CNN CORRESPONDENT: Well, it is, Christine, that video that is particularly damning and that is really stirring up all of that emotion and controversy. What we saw on the streets of that particular suburb in which that
took place early yesterday morning -- it was about 8:18 when the traffic stop happened, local time. What we saw overnight is a result of the news of this young man's death, but also that video, was some fairly severe rioting.
Some 350 policemen were put on the streets to try and bring order -- riot police -- and what authorities say is that they're urging calm but expect to keep those numbers on the streets again tonight should that anger flare up once more.
At the heart of that anger, Christine, this incident. Three young men, including the 17-year-old who was shot dead, in the car that gets stopped by -- at a police check and very quickly then drive off. What the police say is they refused to stop and refused to cooperate.
What's actually emerged is now one of those police officers being taken into custody on suspicion of culpable homicide with Parisian authorities saying that yes, there is the presumption of innocence and this needs to be investigated.
The problem is really, Christine, there has been incidents like these before and that's where that anger has come from. The idea that there have been far too many traffic or I.D. stops and checks by police that have ended in the killing of a young person, often in the less well- off suburbs of Paris.
In addition to that video, which has stoked the controversy and the anger, some of France's best-known personalities have weighed in, including the French soccer star Kylian Mbappe, tweeting that he was hurting for his France. Also, we've been hearing from Omar Sy, a very well-known actor here, saying that justice needed to be brought for this particular child.
The young involved, who died within an hour of that traffic stop despite attempts to save his life, was just 17 years old, Christine.
ROMANS: All right, Melissa Bell. Thank you so much for that in Paris.
Coming up, what's driving some U.S. cities to limit drive-thrus.
(COMMERCIAL)
[05:42:07]
ROMANS: All right. America is the land of drive-thrus. There are around 200,000 of them across the country, meaning a lot of cars, a lot of lines, a lot of traffic. Now some cities want to limit that.
CNN Business reporter Nathaniel Meyersohn joins me. Now, tell us what cities are trying to limit the drive-thru. I hate waiting in line in the drive-thru, by the way.
NATHANIEL MEYERSOHN, CNN BUSINESS REPORTER: Nobody likes waiting in line in the drive-thru. Yes. So, cities are rethinking this symbol of Americana -- the drive- thru. They're trying to become more walkable, livable, reduce greenhouse gases, improve public transit. And they're finding that drive-thrus stand in the way of these goals -- the long lines, the congestion, all the accidents.
ROMANS: Right.
MEYERSOHN: So you see Minneapolis, Minnesota crackdown on new drive- thrus. Towns in New Jersey, New York, and Missouri have also proposed legislation. Other cities as well trying to restrict the drive-thru.
ROMANS: Atlanta, too. Tell us what's happening in Atlanta.
MEYERSOHN: Yes. So, really interesting movement in Atlanta. City Councilman Jason Dozier has proposed eliminating new drive-thrus along the popular Beltline area. And he says that it really has to do with pedestrian safety. There have been about 15 fatalities by cars along the Beltline in recent years. And he says that pedestrian safety is key in Atlanta. It's a dangerous time right now for pedestrians and he thinks that banning new drive-thrus along this area will improve it.
Pedestrian safety is an issue across the country. But pedestrian fatalities up in 2022 to their highest level since the 1980s.
ROMANS: Really? I did not know that.
So what are companies doing to address this?
MEYERSOHN: So, companies like Chick-fil-A, McDonald's, Starbucks -- some of these very popular drive-thrus -- they're adding more lanes. They're trying to speed up the drive-thrus with AI. But critics say that's just going to encourage more cars, more congestion, and that these moves are not really going to make much of a dent.
And the drive-thru is really the future of these businesses. It's -- they're smaller stores, less staffing, so they really like it. But certainly, these cities are not pleased about it.
ROMANS: Interesting. All right, Nathaniel Meyersohn. Nice to see you -- thanks.
All right. Ahead on EARLY START, why our next guest believes tech stocks will keep heating up in the second half of the year.
And it's called Frankenfish -- a predatory fish that can walk on land.
(COMMERCIAL)
[05:48:41]
ROMANS: All right. Your Romans' Numeral this morning is 377 million. Pickleball injuries could cost Americans $377 million this year. America's fastest-growing sport, pickleball, especially popular with more injury-prone seniors and Gen Xers, frankly. UBS analysts say the wrist, leg, and shoulder injuries could account for up to 10 percent of unexpected medical costs.
All right. Looking at markets around the world, Asian markets finished mixed. Industrial profits in China are down 19 percent in the -- in the first five months of 2023 -- more signs its post-COVID economic recovery might be losing steam. European markets are higher this hour.
On Wall Street, stock index futures -- let's take a peek -- barely mixed here. The Nasdaq down a little bit. The Dow finished higher, breaking a six-day streak of losses. Investors were cheering from fresh data signaling the U.S. economy remains resilient despite Fed rate hikes.
Chip stocks this morning, though -- we're looking at those and they're currently down pre-market following a Wall Street Journal report that the U.S. is considering new restrictions on exports of AI chips to China.
That data we were talking about yesterday really strong. Home prices fell for the first time in 11 years, but home sales surged 20 percent in May from a year ago. Consumer confidence also jumped to a 17-month high.
On inflation watch, gas prices held steady overnight at just $3.55 a gallon, down sharply from a year ago.
[05:50:01]
All right, joining me right now, Dan Ives, managing director and senior equity analyst at Wedbush Securities.
And looking at tech stock -- we were looking at these numbers. Since the start of 2020, the Nasdaq is up 32 percent. This year, it's up 30 percent. I mean, last year was a terrible year. But overall, we are seeing a lot of energy in tech stocks here. And you say we could go up another 12 to 15 percent this year. Why?
DAN IVES, MANAGING DIRECTOR, SENIOR EQUITY ANALYST, WEDBUSH SECURITIES: I think it's going to be a broader alley into the second half. We believe this is the --
ROMANS: Broader than just techs.
IVES: And I think within tech -- we think this is the start of a new bull market in tech.
ROMANS: Wow. OK, what's driving it? Is it all AI?
IVES: Look, AI -- in my opinion, it's a 1995 movement -- internet movement. It's a 2007 (INAUDIBLE).
ROMANS: So it's not a '99 tech bubble pets.com moment. It's a '95 Steve Jobs moment.
IVES: That's exactly it. And I think this is really -- this is a transformational technology that's going to be a trillion dollars of incremental spend. So, AI is ultimately really starting what I believe is going to be the new bull market for tech. And I think right now -- I mean, we are seeing what I'll call a Goldilocks scenario play out, despite the macro, that I believe is going to go on for the next three to four years.
ROMANS: So we have this Wall Street Journal reporting this morning that the White House is considering restrictions on the export of some AI chips to China. They're worried about -- they're worried about how they could use them in their military or for hacking.
Do you think that regulation could be something that cools enthusiasm in this sector?
IVES: I think regulation will be at a snail's pace. I think right now, bark is worse than the bite. Ultimately, when you look a NVIDIA, you look at Microsoft -- they're top of the mountain and now I think more investors -- and I think you're seeing a play on tech second, third, fourth derivative in what I view as sort of a fourth industrial revolution playing out led by AI across tech.
ROMANS: I mean, I -- I'm going to be honest. All year, you've been coming on the show and you've been pretty consistent that technology -- to buy tech stocks. And you have been right because the market has done very, very well. But you point out the macro is a little bit -- we're still on recession watch, quite frankly.
And Brian Moynihan, the CEO of Bank of America, yesterday, said that he thinks a recession is coming, although people keep pushing it out. But listen.
(BEGIN VIDEO CLIP)
BRIAN MOYNIHAN, CEO, BANK OF AMERICA: So, what we have predicted is a recession starting the first part of next year. Actually, we moved it from the latter part of this year to the first part of next year. But it's a mild recession. And that's given the strong jobs -- the strong employment levels. Wage growth is still strong. But inflation is still higher than they want -- than it should be.
(END VIDEO CLIP)
ROMANS: Would a mild recession change the outlook for tech stocks?
IVES: Not at all because I think ultimately, the hard landing -- you know, what the bears were saying --
ROMANS: That's not --
IVES: -- it's not going to happen. I think ultimately, the market, looking through that in terms of really what's now going to be a transformational technology leading it. Remember -- I mean, bears right now -- the reason they're in hibernation mode, sleeping, is because of what's really playing out here. It goes against the thesis that many had going into the year.
I believe large-cap tech continues to really play out this rally. But next month, as earnings come through, that's where fundamentals, I believe, really start to surprise on the upside.
ROMANS: When you look at overall gains in the stock market, the S&P is up 14 percent this year but it is driven largely by tech stocks. That's an outsized driver. Does that broaden out, do you think?
IVES: I think it does. I think this rally, which tech stocks are up another 15 percent in the second half of the year -- it broadens out into software, into chips. And I think relative to the rest of the economy we're not starting to go from what I'll view as a yellow light to maybe start to be a little more green in terms of improvements in spending. And I think that's going to be the key into the second half of the year.
Remember, we came into the beginning of this year -- the New York City cab driver was bearish on tech stocks.
ROMANS: Can I just say -- I read it somewhere and I wish I had coined it. But this is the waiting for Godot recession. It just never has come. We've been waiting for a recession for more than a year and half, two years.
IVES: And I do think the problem is in these moments if you focus to -- I'd say macro aware, micro obsessed. And I think this transformational technology we're seeing with AI -- it's a 1995 moment that's really playing on an internet moment.
ROMANS: Right.
IVES: I think that's really the thesis.
ROMANS: So maybe AI takes my job but it makes my stock portfolio look better.
All right, Dan Ives. Thank you so much.
IVES: Thank you.
ROMANS: Nice to see you.
All right. Wildlife officials want people to be on the lookout for the Frankenfish. That's the nickname for the northern snakehead fish, which can breathe air and slither on land. This is originally from Asia but has been spotted in several states recently. It's considered an invasive species because it competes with native fish for food.
All right. Still ahead on EARLY START, a new host to replace outgoing "WHEEL OF FORTUNE" host Pat Sajak. Plus --
(BEGIN VIDEO CLIP)
JASON DERULO, SINGER-SONGWRITER: Singing "Whatcha Say."
(END VIDEO CLIP)
ROMANS: Singer Jason Derulo joins "CNN THIS MORNING" to talk about his new book and his rise to fame. [05:55:00]
(BEGIN VIDEO CLIP)
DERULO: Singing "Whatcha Say."
(END VIDEO CLIP)
(COMMERCIAL)
(BEGIN VIDEO CLIP)
Clip from "WHEEL OF FORTUNE."
(END VIDEO CLIP)
ROMANS: Ryan Seacrest is signing a multi-year agreement to be the new "WHEEL OF FORTUNE" host. Seacrest will also serve as a consulting producer. He released a statement Tuesday saying, quote, "I'm truly humbled to be stepping into the footsteps of the legendary Pat Sajak."
The longtime host announced earlier this month that he will be retiring in 2024 after 41 seasons on the game show. Sajak and Vanna White are two of the longest-serving hosts of any television program in the game show category.
[06:00:03]
All right, a new practice is coming to children at New York City public schools. This fall, students from pre-K through 12th grade will be required to do two to five minutes of mindful breathing practices. Mayor Eric Adams says the new program is intended to improve students' physical and mental health.
Thanks for joining me. I'm Christine Romans. "CNN THIS MORNING" starts right now.
