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Early Start with Rahel Solomon

Top Denmark, Greenland Diplomats To Meet White House Officials; Ukraine Hit With Hypersonic Missile In Overnight Strikes; NASA Crew To Return To Earth Early Due To Medical Issue. Aired 5:30-6a ET

Aired January 09, 2026 - 05:30   ET

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

[05:30:00]

RAHEL SOLOMON, CNN ANCHOR: Also on Thursday, Israel said that it had banned the international staff of more than three dozen NGOs from entering Gaza unless they register with Israeli authorities. Now, those NGOs have already been given 60 days to wrap up their operations. The aid groups say that they're concerned that sharing information about their staff could put those workers at risk.

Still to come for us, it's a bleak market out there if you're looking for a job. What a new survey has to say about U.S. employment opportunities after the break.

Plus, President Trump says that he wants to stop large investors from buying single-family homes. It's a pretty big issue. Still ahead why some experts believe that won't help the current housing market.

Stay with us. We'll be right back.

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SOLOMON: Welcome back to EARLY START. This is your business breakout at 5:34 now Eastern.

[05:35:00]

And here's where U.S. futures stand ahead of the opening bell on Wall Street. A -- we'll pull it up for you. There we go. Pretty much all trading near the flatline now, at least for futures at 5:34.

And checking on some of today's other business headlines, President Donald Trump says that he wants to ban large institutional investors from buying single-family homes. Corporations have snapped up large numbers of homes in recent years. Critics say that the practice has driven up home prices and hurt affordability, but some experts say that the president's move would actually have little impact on affordability or housing stock and would risk depressing investment in the market.

Seventeen Republican lawmakers crossed party lines to vote with Democrats to restore Obamacare subsidies that lapsed last month. Now, without that extra cash millions of Americans would have difficulty paying for skyrocketing health care premiums. The measure is not law yet and it is expected to fail in the Senate.

The data shows bleak prospects for Americans on the job hunt. The Survey of Consumer Expectations conducted by the Federal Reserve Bank of New York found that the probability of finding a new job hit 43.1 percent in December. That is a record low.

And lots of employment data this week. In the coming hours the Labor Department will release the December jobs report. It is the final jobs report of 2025 and estimates of what to expect vary wildly with seasonal factors, such as holiday hiring potentially coming into play.

For more let's bring in Bill Lee in Los Angeles. He is the chief economist at Milken Institute and a former managing director at Citigroup. Bill, great to see you this morning. Thanks for being up with us -- or up late since you're in L.A.

Wall Street is expecting job growth in this report to be anywhere from 55,000 I've seen to 70,000. Not blockbuster numbers but positive job growth. You like to see that.

But you say if you -- if you dig a little deeper the employment picture is actually not quite so positive. What do you mean?

WILLIAM LEE, CHIEF ECONOMIST, MILKEN INSTITUTE, FORMER MANAGING DIRECTOR, CITIGROUP: We're in this really strange environment Rahel where we have very robust GDP growth. People are estimating the current quarter GDP growth may be as much -- as much as 5-5 1/2 percent. But yet, the hiring that we're seeing is very, very slow. We're barely breaking even in terms of offsetting the new entrance into labor force. So the unemployment rate is showing signs of actually drifting up because the pace of hiring is so low.

And, of course, the secret sauce behind all of this is productivity. We have been in a productivity-driven era of growth the last three years. The latest numbers show that productivity has been revised even higher than we thought. And what happens with productivity is that even though people who are working will be able to be paid higher wages and companies won't have to raise prices to keep their profit margins, they will -- they won't need to hire as many people to make the same amount of output.

So then we have this strange situation where things are doing very well on the output side -- on the growth side. But on the employment side, especially if you're looking for a job, you're fresh out of school, or you just got laid off and are looking for a job, you're having a very hard time finding that job because companies just aren't hiring.

SOLOMON: Yeah. It's what you've heard called the low-hire, low-fire sort of phenomenon. Do you see that continuing into 2026?

LEE: I think it will continue because we are -- we -- as firms are becoming more and more productive because of the technological investments they've put in place; they're finding new ways of making people work more efficiently. And because of that I think they're going to find that they won't need to hire as many as they did before. One of the things that as a new worker you're going to have to do is to learn to use the new technologies and have the skills that are needed so that when jobs are available, you're the first to be hired.

SOLOMON: And let's make that plain. When you say use these new skills, I mean, I'm assuming we're talking about AI.

LEE: Actually Rahel, the productivity that we've seen up until now, the last three years of extraordinary productivity growth have been because of investments that were put in place post-COVID. And we have yet to see the advances in AI really hit the scene.

I have one story, for example, where I think people are saying well, probably only the white-collar worker that's working with computers will be using the AI models.

But I had an electrician come to my house where he said he's scheduling all of his advance calls for the next week using an AI app and he's letting AI put together his bids for the next set of contracts because AI is able to gather so much more information so much more effectively and put it together in a way that he's finding himself winning contracts.

So AI is showing up on the scene but most of the job hiring slowdown is partly because of the technology that's been put in place and not just the AI. When AI starts to kick in, I think productivity will be boosted even further --

SOLOMON: Um-hum.

LEE: -- and I think that the pace of hiring will be cut back even further.

SOLOMON: Yeah. I mean, that certainly is the fear of a lot of people.

Bill, before I let you go, we could get a decision today from the Supreme Court -- perhaps today -- as early as today on the legality of President Trump's "Liberation Day" tariffs.

What are you expecting there? And if they strike down these tariffs -- I mean, what happens then? I mean, how much confusion does that create for all of the companies that have already paid for the tariffs?

[05:40:00]

LEE: Well, I think every -- we're all expecting the Supreme Court to say that well, not all the tariffs will stay in place. But I think they will never question that the president has a right to put on tariffs. It's just that he's used the wrong reason for why he put on the tariffs -- the emergency act that he -- that he invoked.

SOLOMON: Um-hum.

LEE: So I think there will be a lot of scrambling around to replace the current tariffs with other ones, and that will cause a mess, especially if they ask the original tariffs to be reimbursed to the people who paid them.

SOLOMON: Yeah.

LEE: Now one nice thing that we realized is that the deficit has really been contained by the huge amount of tariff revenues we've been getting. So I think tariffs are here to stay but the rationale for placing the tariffs in place will be changing because of the Supreme Court decision.

SOLOMON: Um-hum. How exactly they carry out the tariffs.

Bill Lee, appreciate your time this morning. Thank you.

LEE: Thanks.

SOLOMON: All right. President Trump renewing his focus on taking control of Greenland. Democrats are working to -- diplomats are working to find a solution that will work for all parties. We'll have those details coming up after the break.

Plus, Ukraine takes a hit from one of Russia's most advanced weapons, which flies 10 times the speed of sound.

We'll be right back.

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[05:45:32]

SOLOMON: Welcome back. I'm Rahel Solomon. And here are some of the stories we are watching for you today.

A law enforcement official says that a married couple was hospitalized and arrested in Portland, Oregon after being shot by border patrol agents. Homeland Security says that the agents were conducting a traffic stop and fired when the suspects tried to run them over.

Protests are flaring up in Minneapolis after an immigration officer shot and killed 37-year-old U.S. citizen Renee Good. As the White House defends ICE, Minnesota officials say that the FBI has blocked them from joining the investigation.

And to energy executives are expected to meet with President Trump today to discuss Venezuela's oil output. Trump wants companies to make large new investments to rebuild the nation's energy infrastructure, but first the U.S. would have to lift sanctions and provide the supplies needed to move the nation's heavier crude oil.

Now to a stinging rebuke of President Trump. Five Republican senators broke rank and voted with Democrats to rein in the president's authority to wage war in Venezuela. They advanced a resolution that would limit the use of U.S. military force there, meaning that troops couldn't go in again without congressional approval. The full measure is expected to pass next week.

President Trump none too pleased. He says that Republicans who backed the measure should never be elected to office again.

(BEGIN VIDEO CLIP)

SEN. JOSH HAWLEY, (R-MO): I just think it's an Article 1, Article 2 thing. I just think if you're going to put troops in there for hostilities you're going to have to get congressional approval.

SEN. RAND PAUL (R-KY): This vote is about a real incursion. It's about a real invasion of a foreign country, an invasion of a foreign capital, and a removal of a foreign leader. There are some real questions that will go on that Congress needs to be involved with.

(END VIDEO CLIP)

SOLOMON: And a short time ago President Trump posted on social media that he had canceled a second wave of attacks on Venezuela because authorities there are cooperating with the U.S.

Venezuela says that at least 100 people were killed in the raid last weekend when then-President Nicolas Maduro was captured -- a raid that Congress, of course, did not get the chance to approve.

U.S. Secretary of State Marco Rubio set to meet with his counterparts from Greenland and Denmark next week in Washington. That comes as President Trump ramps up his threats to take over the world's biggest island.

CNN's Nic Robertson has more on how people in Greenland are handling the growing tensions.

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NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Everyone here in Greenland is worried about President Trump's threats, for national security reasons, to take control of Greenland. They're worried that he could do it by military force. The vast majority of people here at the last polling, only six percent said they wanted the United States to take control. The vast majority of people here do want independence, but eventually -- not necessarily right now.

And just speaking to one person after we arrived here, he said to me, "President Trump thinks he's a big man, but we don't see him that way. We think of him as a small person." They like their life here, he tells me. They're worried that it's going to change irreversibly if the United States takes control.

Danish politicians are worried. Greenland politicians are worried. We know that the foreign minister from Greenland is expected to meet, along with the foreign minister of Denmark -- they're expecting to meet with Secretary of State Marco Rubio next week. The Danish foreign minister asked for that meeting. He said it's necessary because we need to get nuance into the conversation. They feel that the United States doesn't understand what Denmark offers. What Greenland has on tap for them already in terms of resources and potential troop deployments. The foreign minister of Denmark also said that we need to bring the

rhetoric down -- tone it down. But the Danish prime minister has used even stronger language and said, "Look, if President Trump takes this area by force -- Greenland -- then that's the end of NATO." And the European Union is standing lockstep behind Denmark and Greenland right now.

(END VIDEOTAPE)

SOLOMON: Our thanks to Nic Robertson there.

Russia has just used one of the most advanced weapons in its arsenal against Ukraine. The Oreshnik hypersonic missile was part of a massive barrage that hit various targets overnight. The missile can carry multiple warheads and fly 10 times the speed of sound. President Vladimir Putin claims that it is impossible to intercept.

Ukraine says that Russia fired almost 300 drones and missiles on targets, including Kyiv. President Zelenskyy says that at least four people were killed and 24 others were hurt.

[05:50:00]

CNN crews reported residential buildings were struck and power outages darkened large parts of the city.

Let's get to our Fred Pleitgen following all of this for us from Berlin and joining us live. Fred, good morning to you. What do we -- what do we know about the ballistic missile that we used -- that was used in this latest strike, and what warning has Russia given about troops?

FREDERIK PLEITGEN, CNN SENIR INTERNATIONAL CORRESPONDENT: Hi there, Rahel.

By all accounts, this was a massive attack that took place overnight on Ukraine. And you already mentioned some of the sort of data -- some of the numbers that we're getting from the Ukrainians with around -- I think it was 242 drones, several ballistic missiles, cruise missiles, and then that Oreshnik missile as well, which is a gigantic weapon that the Russians have actually only used one time in the past to hit the Ukrainian city of Dnipro. And that was at a time when they were at standoff with the then-Biden administration around possible missiles that the U.S. was then giving to the Ukrainians.

So this is certainly a big escalation on the part of the Russians and one of the first times that they've actually used this missile.

And what we've heard from the Ukrainians so far also makes this quite significant in that the Ukrainians say that it struck near the town of Lviv fairly close to the border with Poland, so fairly close to the border with NATO. So not only did the Russians use a massive weapon, they also used it very close to the borders of the NATO alliance.

And we know from the Russians that they've sort of been putting this weapon out there as one of the sort of mega weapons that they have, saying that it can't be intercepted. That even in a conventional setting that it unleashes the force almost of a nuclear explosion. And certainly, something that you don't mess with.

Essentially, the Oreshnik is a modified intercontinental ballistic missile that the Russians have now modified to use in the medium-range setting. And they have in recent days and weeks said that this missile is now on combat duty. They've stationed some of those missiles in neighboring Belarus, which is, of course, a big ally of the Russians.

But certainly, the messaging from the Russians very much seems to be that you can't mess with the Russians. They are going to continue their military operation in Ukraine. And certainly, also, the Russians recently feeling some friction with the U.S. and also with the U.S.' NATO allies as well.

SOLOMON: Yeah.

All right. Fred Pleitgen for us there in Berlin. Fred, thank you.

Still ahead for us, four astronauts are coming back from the Space Station much earlier than planned. Find out why NASA made the rare decision to bring them back so soon.

We'll be right back.

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[05:56:55]

SOLOMON: Welcome back.

A snowstorm over much of northwestern Europe led to frustrating closures as well as, at least for some, some winter fun. In Britain, heavy snow and strong winds left tens of thousands of people without power Thursday. Hundreds of travelers were stranded after flights in Paris, Brussels, and Amsterdam were canceled on Wednesday. Some people though did manage to frolic in Paris with the snow and sleds, and skis. The storm, called Goretti, also forced schools across the region to close.

A newly discovered object in space could shed light on the invisible and mysterious substance called dark matter. Cloud 9, as it's called, was found using the Hubble space telescope. Never directly observed, dark matter is theoretically believed to make up most of the universe and provide its structure. New research finds Cloud 9 could be a remnant of the galaxy formed in the early days of the universe. Astronomers believe that dark matter came from the big bang that created the universe nearly 14 billion years ago.

NASA is bringing the four astronauts of SpaceX Crew 11 back to Earth early because one of them has a medical issue. The unnamed crew member is in stable condition and not expected to receive special treatment during the trip back from the International Space Station. The return is expected in the coming days more than a month ahead of schedule.

NASA administrator Jared Isaacman announced the change on Thursday. (BEGIN VIDEO CLIP)

JARED ISAACMAN, NASA ADMINISTRATOR: For over 60 years NASA has set the standard for safety and security in crewed space flight. In these endeavors, including the 25 years of continuous human presence onboard the International Space Station, the health and the well-being of our astronauts is always and will be our highest priority.

(END VIDEO CLIP)

SOLOMON: NASA revealed the issue on Wednesday after postponing a spacewalk. NASA's next four-member team was set to take off for the Space Station in mid-February but could launch sooner.

Well, it turns out that some super-smart dogs can learn new words just like 18-month-old toddlers simply by eavesdropping on adult conversations. Research in Hungary did a variety of tests and they directly told the gifted pets the name of toys. They talked about the toys without looking at the dogs. They even hid the toys and just talked about the playthings. Most of the dogs learned the toys' names in as little as eight minutes by picking up conversational cues just like the kids.

Now don't get too excited because the researchers stressed that normal house pets -- well, they flunk the test.

All right. The University of Miami football team is headed to the National Championship in their home stadium. Quarterback Carson Beck led the Hurricanes to a 31-27 victory over the Ole Miss Rebels. It was an epic fourth quarter with four lead changes, but Miami landing the final punch -- a rushing touchdown from Beck in the closing seconds of the game.

Miami will now take on the winner of Friday's Indiana-Oregon game for the National Championship on January 19.

[06:00:00]

James Cameron's sci-fi epic "Avatar: Fire & Ash" is expected to attend -- extend its reign atop the box office this weekend. It's already grossed more than a billion dollars, and it's expected to bring in another $20 million in ticket sales, easily beating new releases like "Greenland 2" and "Primate."

Meantime, Hollywood's 2026 awards season is officially underway. On Thursday, they rolled out the red carpet for Sunday's Golden Globes awards show. And for the first time -- talk about a sign of the times -- the Globes will honor podcasts in addition to film and television.

All right. That's going to do it for us here today. Thanks for being with us here on EARLY START. I'm Rahel Solomon live in New York. "CNN THIS MORNING" starts right now.