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Elizabeth Warren Seeks Early 2020 Advantage In Iowa Blitz; Kevin Spacey Expected To Plead Not Guilty At Arraignment Today; No Breakthrough As U.S. Government Shutdown Enters Day 17; Trade Talks Resume Between U.S. And China; Hundreds Of TSA Screeners Calling Out Sick At Major Airports. Aired 7:30-8a ET

Aired January 07, 2019 - 07:30   ET

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

[07:30:00] ALISYN CAMEROTA, CNN ANCHOR: CNN has learned that former vice president Joe Biden will make his choice about a potential run for president in the next months. According to one ally, Biden is leaning towards running.

Meanwhile, Sen. Elizabeth Warren was in Iowa this weekend where she had to again answer questions about her Native American ancestry.

(BEGIN VIDEO CLIP)

SEN. ELIZABETH WARREN (D), MASSACHUSETTS: I can't stop Donald Trump from what he's going to do. I can't stop him from hurling racial insults. I don't have any power to do that.

UNIDENTIFIED FEMALE: Yes, you can.

WARREN: Well --

(END VIDEO CLIP)

CAMEROTA: Joining us now, two reporters who followed Warren closely this weekend. We have political columnist for the "Des Moines Register," Kathie Obradovich. And, CNN national political correspondent MJ Lee. Great to have both of you.

OK, MJ, what stood out to you? You left from NEW DAY and flew out to Iowa, and what stood out from Elizabeth Warren's trip?

MJ LEE, CNN NATIONAL POLITICAL CORRESPONDENT: Well, what stood out to me is maybe something that's not that surprising and that is that Elizabeth Warren is not test-driving a new message. She is someone who has known her message actually for many years, and that is actually reflected in when you talk to the people of Iowa -- in talking to the voters who showed up to her events.

And to be clear, they are not all Warren supporters at this point. There were plenty of people who showed up because they were simply curious to see her. They were excited that this was one of the first sort of campaign events of 2020 to come to Iowa.

She was clear in her message and that was reflected in what the people already knew about her. CAMEROTA: And capture that message for us. What's the headline of her message to the people of Iowa?

LEE: It is that Washington does not work for working-class families. That Washington is working for big corporations and corporate interests.

And this is something that voters already know about Elizabeth Warren. They have no doubt that she is the person who has taken on Wall Street. That she is someone who has fought for years on making things work better for middle-class Americans and they get that about her.

But I think the decision that they need to make is whether that is the message that they want, whether that is the policy that they would like in their Democratic candidate, and that's obviously going to take a while for a lot of people to figure out.

CAMEROTA: Kathie, how did Iowans respond to her?

KATHIE OBRADOVICH, POLITICAL COLUMNIST, DES MOINES REGISTER: I think that she had a really outstanding first outing here in Iowa. Huge crowds, enthusiastic crowds. No enormous gaffes that will haunt her on the trail. So, yes, I think it was a really strong first outing.

One thing that stood out to me was that she took a question from someone who kind of wanted to skewer the Democratic Party for how they perceived that Bernie Sanders was treated -- the progressive wing of the party was treated by Hillary -- and Elizabeth Warren did not want to go there. She said I'm not going to relitigate the past. And interestingly, she had Hillary Clinton's state director from 2016 from Iowa on stage with her.

So I thought it was an interesting move to try to bridge the progressive wing of the party with the more establishment wing of the party. I thought that that was a smart move on Elizabeth Warren's part and we'll see how that progresses as the campaign goes on.

CAMEROTA: OK, let's listen to her in her own words in Iowa this weekend as she tries to capture and sum up her message for voters. Listen to this.

(BEGIN VIDEO CLIP)

WARREN: Pretty much all of my adult career has been spent around one central question and that is what's happening to working families in America? Why has America's middle-class been hollowed out? What's happening to opportunity in this country?

Why is the path so rocky for so many people and so much rockier for people of color? Why has this happened in America?

(END VIDEO CLIP)

CAMEROTA: That is really interesting, MJ because to your point, it's consistency. That's what she has been saying for years, decades, and it's -- but it's different than all the talk that we're having right now about immigration, the talk about impeachment. That's not her message.

LEE: Right, and I think we'll see whether she decides at some point down the line that she wants to make the pivot to being more on the attack -- taking on the more politically salient issues of the day like impeachment or even, frankly, taking on the president on the national stage.

I thought it seemed very clear over the course of this weekend that Sen. Warren did not want to spend her time -- the majority of her time, at least, taking on the president even though we should note this is one of the reasons that she has a national following and a lot of people watching her rise. They like the fact that she has been willing to take on the president.

[07:35:00] So at some point she may reach a point where she feels like yes, there is sort of the thirst and the hunger that I can feel from voters and I'm going to engage on that front. But at least for her very first visit and her debut in Iowa, Trump was not going to be her focus and neither was Hillary Clinton, as she pointed out.

CAMEROTA: OK. So, Kathie -- so, Elizabeth Warren had enthusiastic crowds -- overcapacity crowds.

How would Iowans feel about Joe Biden?

OBRADOVICH: Well, that is an interesting question. I think Joe Biden is, I think, really beloved among Iowa Democrats. He -- the "Des Moines Register" did a poll with CNN a few weeks ago and Joe Biden was at the top of the list for likely caucusgoers -- their first choice based largely, I would say, on name recognition.

However, I don't think that Joe Biden's core supporters -- the people who are really activists -- are sitting around waiting for him to decide to run.

When I asked them at this stage in the 2016 cycle -- people who had been with him in 1998 and again in 2008 were sort of like well, you know, he's had his chance and not necessarily -- they were looking at other candidates, looking for fresh faces.

There is a significant share of the Democratic caucusgoing population right now -- more than a third -- who said in our poll that they were looking for new, fresh faces. So I do think that Joe Biden can't take anything for granted in Iowa.

And furthermore, people are snapping up really experienced staff right now. He can't wait very long.

Conventional wisdom would say somebody as famous as him doesn't have to get in right away. The practical reality on the ground is to get organized and get the people you need. You're going to have to get in because there's so many candidates and potential candidates in the wings and they're not sitting around.

CAMEROTA: That's a really interesting point. Our reporting is that he will be making the decision in the next month. MJ, here's what he told a Democratic official who was quoted to "The New York Times." "If you can persuade me there is somebody better who can win, I'm happy not to do it. But I don't see the candidate who can clearly do what has to be done to win."

So, you know, it's like Democrats may want a fresh face but they also want someone who can win, and I guess that's his calculation.

LEE: Absolutely, and I think timing is going to be, obviously, so important. When you talk to people in Iowa -- and when I talked to them over the weekend at these Warren events, one thing was clear. They may not know who they eventually want to support but they are ready for this process to begin.

They feel like the country is going in the wrong direction because of President Trump. They are not happy about his rhetoric and the way that he conducts himself at the White House and they want this fight to begin.

And, Vice President Biden is clearly taking his time -- a little bit longer, at least, than Sen. Warren to make that decision. And a lot of people are eager for -- to get a sense of who the other candidates are going to be.

CAMEROTA: Look, it's nice that they're so engaged. It's nice that they take their responsibility as one of the first states to vet all these candidates so seriously that they show up even if they don't support the candidate.

Kathie, MJ, thank you both very much -- John.

JOHN BERMAN, CNN ANCHOR: All right, Alisyn.

In just hours, actor Kevin Spacey will be arraigned. He is expected to plead not guilty to indecent assault and battery charges. Spacey did not want to appear in court today but a Massachusetts judge is ordering him to be there.

Jean Casarez live in Nantucket with the latest -- Jean.

JEAN CASAREZ, CNN CORRESPONDENT: Good morning. We're right here on the island. The arraignment starts at 11:00 in the brick courthouse behind me.

And the defense really lodged a constitutional argument, saying that there's so much publicity and that if he was here in person that it would actually taint the jury pool and deny him a fair trial. The judge did not agree with that. He will be here in person.

But according to the complaint, it was in 2016 -- a restaurant a couple of blocks away. Kevin Spacey was going to be there that night. Everybody knew about it.

There was a young busboy that was very excited to meet him. He changed his clothes when he got off work at midnight. He went up and he met Kevin Spacey. According to the complaint, the accuser told detectives that Kevin Spacey asked him if he was of age to drink. He said yes, that he was 23. He wasn't, he was 18.

Kevin Spacey, he said, kept buying him drinks -- three to five beers and then three to five whiskeys.

They were together at the table. They were together at the piano at singalongs. They went outside back and went smoking. They were together for over an hour.

And according to the accuser, once they got up to the piano bar near the end of the evening, Kevin Spacey was in front of him and he began to touch him unconsensually. That he actually started to grope him.

And that is when the accuser froze. He didn't know what to do so he didn't do anything. Spacey went to the bathroom. He then left the restaurant.

I want you to listen to the defense attorney, Alan Jackson, former Los Angeles prosecutor, now defense attorney representing Kevin Spacey at a probable cause hearing in December. It tells us where the defense will go.

[07:40:08] (BEGIN VIDEO CLIP)

ALAN JACKSON, DEFENSE ATTORNEY REPRESENTING KEVIN SPACEY: Instead of walking away or moving away or moving back or grabbing the wrist or slapping the hand, he indicated to you during that 3-minute time period that he was texting and snapchatting.

GERALD DONOVAN, MASSACHUSETTS STATE TROOPER: That's correct.

JACKSON: You found no witnesses to corroborate his statement about the three minutes' worth of groping, correct?

DONOVAN: That's correct.

(END VIDEO CLIP)

CASAREZ: The prosecutor will need to prove beyond a reasonable doubt, number one, an unwanted touching. And number two, that it was not consensual.

Alisyn and John, these are serious. It is a felony charge, five years in prison maximum, and Kevin Spacey would have to register as a sex offender.

BERMAN: All right. Jean Casarez following this for us on Nantucket. Jean, bring us the latest. It will be very interesting to see Kevin Spacey in court.

In the meantime, this new freshman class of Congress -- we're going to speak to one of the key new members. What does he make of the splash they've all made in just a few days? That's next.

(COMMERCIAL BREAK)

BERMAN: Two Democratic senators are calling on colleagues to block any bills that are not related to reopening the government. The Democratic-led House has already passed bills that would end the shutdown but not fund the president's border wall. The Senate has not taken up any of those measures.

[07:45:03] Joining us now is Democratic Congressman Tom Malinowski, a new member from New Jersey. Thanks so much for being with us. Congratulations on your first week in office.

REP. TOM MALINOWSKI (D), NEW JERSEY: Thank you.

BERMAN: So, the president now says that he is willing to have this barrier be made of steel, not concrete. How much do the building materials matter to you?

MALINOWSKI: It's not about building materials. It's not even really about border security. As you know, we provided billions of dollars in border security to this administration that they haven't spent. This is about what happens when the president doesn't get his way.

The president, obviously, is entitled to fight for his wall or for any other policies that he may want, but if he cannot persuade the United States Congress, which he hasn't --

BERMAN: Yes.

MALINOWSKI: If he can't persuade the American people, which he hasn't, is he entitled to shut down the government? To take the entire United States government hostage. I believe he's not and that's why I think it's really important that we not acquiesce to this.

BERMAN: In the past, Democrats have voted for fencing barriers as part of larger deals. The president wants 234 miles of new barrier.

Do you think that any new barrier, whether it be fencing or walling or slats or anything -- that any new barrier is merited?

MALINOWSKI: I think that's a debate that we can have when we consider the appropriations bill for DHS, the Department of Homeland Security, in February. It's not a debate that we should have with the entire United States government held hostage, with TSA employees not going to work, with millions of Americans facing the loss of nutritional assistance, with Coast Guard employees not getting paid.

BERMAN: Once the government does open could you support some new barrier?

MALINOWSKI: Once the government is open I would support looking at a broader compromise on immigration. And it's not just going to be a debate about a barrier. It's going to be a debate about comprehensive immigration reform, about child separation, about the Muslim ban, which is still in place.

About all of these policies that the president has put into place that I and many Democrats think are un-American and frankly, unlawful.

BERMAN: You are a member of this freshman class in Congress and some of your classmates have received a lot of attention. I'm not going to ask you to respond to Rep. Rashida Tlaib.

What I do want to ask -- and Cortez was on "60 MINUTES" -- freshman member of Congress just four days into it and getting the "60 MINUTES" treatment.

What I am going to ask you is why do you think they are getting so much attention? What's captivating people so much about the fact that Rashida Tlaib said impeach the mother-blanker?

MALINOWSKI: Well I -- our freshman class is getting attention because we're the largest, most diverse freshman class in -- well, in generations. And I think some of us are -- have a lot to say that's of interest to the American people.

But I think -- look, it's very important that we maintain a distinction between what's trivial and what's important in America right now.

What's important is that we had a presidential campaign in 2016 that was inviting the help of a foreign power while the presidential candidate was doing real estate deals in that country.

Whether the (audio gap) uses a bad word, that's trivial.

The government shutdown is important. What we're going to do to reopen the government is important.

The debate about border security is important and about health care. And I think that's where the attention of the media should be.

BERMAN: You brought up the Russia investigation. I just want to point out one of the things we did learn last week is that the grand jury who has been sitting in the case of the Russia investigation has been extended up to six months, so this thing is not going away anytime soon.

You spent a good deal of your career in foreign policy. And I want to ask you about recent developments in Syria where the national security adviser John Bolton seemed to reverse course or walk back the president's demand to withdraw all U.S. troops from Syria.

Initially, the president wanted to do it now or in 30 days. That was extended to four months. But this new policy appears to be somewhat indefinite.

Listen to the national security adviser.

(BEGIN VIDEO CLIP)

JOHN BOLTON, NATIONAL SECURITY ADVISER: We're going to be discussing the president's decision to withdraw, but to do so from northeast Syria in a way that makes sure that ISIS is not able to revive itself and become a threat again. And to make sure that the defense of Israel and our other friends in the region is absolutely assured.

(END VIDEO CLIP)

BERMAN: John Bolton listed conditions. He has conditions for the U.S. withdrawal. The president, when he made the announcement, did not have conditions.

Do you, Congressman, know what the U.S. policy is this morning?

MALINOWSKI: No, nobody does. Under normal circumstances, I would say that's great. The national security adviser speaks for the president and he's reassured us that this will be a more responsible policy.

[07:50:08] But we all know this is not a normal circumstance. That the president, tomorrow, could completely contradict what John Bolton said.

Look, every single person, years ago, who we thought might constrain (audio gap) his impulses is on. The only constraint -- the only check right now on a completely irresponsible foreign policy comes from the United States Congress.

And I look forward over the next two years to being part of an -- part of an effort in the Congress to provide that track.

BERMAN: Congressman Tom Malinowski, welcome to NEW DAY. Please come back. And again, congratulations on your first week in office.

MALINOWSKI: Thank you so much.

BERMAN: Alisyn --

CAMEROTA: TSA workers are among the 800,000 federal workers furloughed or not getting paid, and CNN has learned some are calling out sick. So, what travelers are seeing now at some of the busiest airports.

(COMMERCIAL BREAK)

[07:55:14] CAMEROTA: It's time for "CNN Business Now."

The first face-to-face negotiations since President Trump and President Xi of China declared a 90-day truce in their trade war.

Chief business correspondent Christine Romans joins us with more. How's this going to go?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT, ANCHOR, "EARLY START": Good morning, Alisyn.

Well, the deadline is March first. No deal and the U.S. jacks up tariffs on $200 billion in Chinese goods to 25 percent from 10 percent. It could slap import taxes on tens of billions more.

These are deputy-level trade talks. But, "Bloomberg News," this morning is reporting China's top trade negotiator made an appearance. That highlights just how high the stakes are here.

The Chinese side has incentive to get a deal done. The trade war has slammed the Chinese economy, already slowing down before the U.S. tariffs. Its stock market fell last year.

On Sunday, the President of the United States said this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I think China wants to get it resolved. Their economy is not doing well.

(END VIDEO CLIP)

ROMANS: (Audio gap) responding to that this morning in a new statement. A spokesperson (audio gap) quote, "They want to get a deal done. But in terms of China's economy, good or not, as I have said, we have firm faith in China's economy that it will be good and stable for a long term." A response directed to the president.

Now, China's slowing economy cuts both ways. Apple's big sales warning last week because of slowing iPhone sales in China has investors asking who's next. From iPhones to autos, global brands rely on China for growth. A slowdown there puts their earnings at risk.

So what does the U.S. want? Well, it wants China to stop stealing U.S technology. It wants more access to Chinese markets, more exports to China, and big structural changes in China's system of forcing American companies to hand their technology over and their secrets over just to do business there, John.

BERMAN: These negotiations so important.

ROMANS: Yes.

BERMAN: We want to watch every twist and turn.

Christine Romans, thanks very much.

ROMANS: You're welcome.

BERMAN: CNN has learned an increasing number of TSA screeners who are working without a paycheck are calling out sick as the federal government (audio gap) major airports may signal major headaches ahead if you are planning to fly.

Our Rene Marsh live at Reagan National Airport in Washington with the very latest -- Rene.

RENE MARSH, CNN GOVERNMENT REGULATION AND TRANSPORTATION CORRESPONDENT: Well, John, I spoke with two senior TSA officials as well as three TSA union representatives and they tell me that hundreds of TSA officers have already called in sick since this government shutdown began. And all of those TSA employees tell me that their main concern is that air travel will be less safe because they are essentially doing more with less.

Now, TSA does acknowledge that the callouts are happening. And I'm quoting them. They say that the callouts began over the holiday and they had increased.

But, TSA is saying that these callouts are not yet at a significant level where it's impacting security procedures or wait times. However, many of the TSA officials that I'm speaking to says that could certainly change in the days (audio gap) the shutdown drags on. As we all know, there is no end in sight.

And many of these officers say that they are calling in sick not necessarily to protest. Of course, they're angry about these shutdowns, but they're calling in sick because they are looking for cash-paying jobs outside of government so that they can continue to pay their bills.

Take a listen to this one TSA officer and her (sic) situation.

(BEGIN VIDEO CLIP)

BRIAN TURNER, TSA AGENT WORKING WITHOUT PAY: I live about a half hour from work and it's going to come to a point where you say do I put gas in my car or do I feed my family? You feel hopeless and you feel helpless, you know.

I'm not in Washington. I don't have the influence that these people of power have. And we rely on them. We elect them to these positions to get a job done.

(END VIDEO CLIP)

MARSH: All right.

Well, yesterday, at a few airports we saw tweets, we heard passengers complaining about long lines at airports like LaGuardia -- airports right there in New York City. There were reports of lines that were closed there, people waiting online for quite some time at the TSA checkpoint. One officer even telling one of our CNN producers that the reason for that was that there was a shortage of staff.

However, we reached out to TSA and they were saying it had nothing to do with the sickouts and nothing to do with the shutdown. It was just simply normal traffic.

Back to you guys.

CAMEROTA: Very interesting, Rene. Thank you very much for all of your reporting from Reagan National.

So, the White House is resorting to erroneous numbers to try to make the case for the president's border wall. We have it all covered for you right now.

(BEGIN VIDEO CLIP)

TRUMP: I informed my folks to say that we'll build a steel barrier. They don't like concrete, so we'll give them steel.

SEN. DICK DURBIN (D), ILLINOIS: There's no requirement that this government be shut down while we deliberate whether it's a fence or a wall.

MICK MULVANEY, ACTING WHITE HOUSE CHIEF OF STAFF: We did not make much progress. Democrat negotiators were not there to talk about any agreement.

SEN. DOUG JONES (D), ALABAMA: I do not believe that holding government workers hostage is the way to determine how best to secure our borders.