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EARLY START

Donald Trump calling out the head of the CIA; Obamacare Replacement Nearly Ready; Arrest Warrant for Top Samsung Executive. 4:30-5a ET

Aired January 16, 2017 - 04:30   ET

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


[04:30:00] (COMMERCIAL BREAK)

CHRISTINE ROMANS, CNN ANCHOR: Developing overnight, Donald Trump calling out the head of the CIA suggesting John Brennan was behind leaks that caused a real headache for the transition. What did John Brennan say that has Trump in another tussle with intelligence four days before taking the oath of office?

And China laughing at the president-elect as state run tabloid dismissing amateur and arrogant as Donald Trump speaks on a wide range of issues he will face in the white house. >

MIGUEL MARQUEZ, CNN ANCHOR: And China laughing at the president- elect. A state-run tabloid dismissing Donald Trump as amateur and arrogant as Trump speaks to the European media about a wide range of issues he'll face in the White House.

ROMANS: And Donald Trump trying to clarify his plans for health care coverage for all and lower drug prices of (INAUDIBLE), but he's also warning Congress to get the job done and soon. Welcome back to "Early Start" this Monday morning. I'm Christine Romans.

MARQUEZ: And I am Miguel Marquez. It is 31 minutes past the hour. Happy MLK Day to you.

ROMANS: Nice to see you.

MARQUEZ: Overnight, Donald Trump lashing out at the head of the CIA, John Brennan. Brennan criticized the president-elect in an interview with "Fox News Sunday" suggesting that Trump's desire for friendlier relations with Russia could run smack into the reality of Moscow's real intentions.

(BEGIN VIDEO CLIP)

JOHN BRENNAN, CIA DIRECTOR: I don't think he has a full appreciation of Russian capabilities, Russia's intentions and actions that they are undertaking in many parts of the world. And that's what the obligation and responsibility intelligence community is.

I very much hope that our relationship with Russia improves in the coming administration, but there is a fair amount of responsibility on Russia's part to change their behavior, change their actions. I think he has to be mindful that he does not yet, I think, have a full appreciation and understanding of what the implications are of going down that road as well as making sure he understands what Russia is doing.

(END VIDEO CLIP)

MARQUEZ: On Sunday night, Trump hit back quoting a Fox News headline about the interview in a pair of tweets. "Outgoing CIA Chief John Brennan blasts president-elect Trump on Russia threat. He says he does not fully understand." Trump responds, "Oh, really? Couldn't do much worse" When Trump lists a few recent sore spots in the U.S. relationship with the Kremlin -- "just look at Syria and use of chemical weapons that crossed President Obama's red line, Crimea, Ukraine and build up of Russian nukes. Not good. Was this the leaker of fake news?"

That last line aimed at Brennan referred to a dossier of unverified claims that Russia allegedly has compromising information on Trump and to Trump's belief that the intelligence community leaked that dossier to the media.

ROMANS: All right. New word this morning on Donald Trump's own plans to dismantle Obamacare. In an interview with the "Washington Post," the president-elect said his proposal for a Obamacare replacement is just about ready to unveil. He would not reveal specifics because "we're going to have insurance for everybody even those who cannot afford it." Now that is an apparent contrast to Republican leaders who say they're aiming for universal access not necessarily universal coverage.

Trump promised his plan would be "much less expensive and much better." Part of achieving that will be targeting pharmaceutical companies forcing them to negotiate lower drug prices for Medicare and Medicaid.

MARQUEZ: Now in the interview, Mr. Trump offered a combination of pep talk and warning to lawmakers saying the Congress can't get cold feet because people will not let that happen. And that was in fact the message carried by thousands of people at more than 40 rallies from Maine to California on Sunday. Former Democratic presidential candidate Bernie Sanders appeared at one of those rallies in Michigan where he spoke to CNN.

(BEGIN VIDEO CLIP)

BERNIE SANDERS (D), VERMONT: Millions of people think it is insane to repeal the Affordable Care Act without having a replacement. You just cannot throw 20 million people off of health insurance, raise the cost of prescription drugs for seniors, do away with very important patient protection provisions. You just can't do that unless you have another plan in its place.

(END VIDEO CLIP)

MARQUEZ: Now, some Republicans have expressed concern about rushing to repeal Obamacare without a replacement plan on the table. Even so, the House voted Friday to take the first procedural step on the road to repeal.

[04:35:10] ROMANS: And then there's this. A Chinese state-run newspaper slamming Donald Trump as a "amateur" over his remarks on Taiwan. On Friday, Trump told the "Wall Street Journal" that America's one China policy which of course officially recognizes Beijing's government and not Taiwan -- he said it's negotiable. Overnight, the tabloid "Global Times" called it despicable for Trump to use the U.S. stance on Taiwan as a bargaining chip in trade negotiations.

The state newspaper says, "We were simply angry initially, but now we can't help but laugh at this U.S. leader in waiting. Maybe American voters promoted him too quickly. His amateur remarks and over confident manner are equally shocking." The editorial adds that a fight with Trump over one China would make Beijing speed up efforts to reunify with Taiwan, "We would strike back so hard until the entire Taiwan society realizes that Washington is hurting them."

MARQUEZ: Donald Trump has plans to cut a deal with Russia. The president-elect suggesting in an a new interview he will offer Russsian president Vladimir Putin an end to sanctions in exchange for a nuclear arms reduction agreement. Trump is quoted as saying "A lot of people are going to benefit from the deal" he plans to offer.

And that's not the only headline to come out of Trumps interview with European media. For the latest, let's bring in former CNN Moscow bureau chief, Jill Dougherty. Good morning to you Jill. This idea that you can sort of trade nuclear arms for sanctions, does that make any sense in some of the way these things go and in diplomacy generally?

JILL DOUGHERTY, GLOBAL FELLOW, WOODROW WILSON CENTER: Well, for people who know about nuclear weapons, this is a real head scratcher because essentially it's apples and oranges. You know, normally you don't say bill (ph) stop sanctions if you give us a nuclear arms reduction agreement. And we are getting a little bit of reaction now, just a few minutes ago.

The spokesperson for President Putin was asked about that and he kind of diplomatically sidestepped it saying, "We're going to wait for Mr. Trump to become president of the United States." And then a little bit of reaction too coming from the parliament basically in tweets saying, "These nuclear arms are a very delicate issue and this is not a proposal so maybe we kind of put this aside. Maybe we put this aside for the time being. So, I don't think anybody is picking up on that Miguel

MARQUEZ: Well, it is interesting to see how that one plays out. On Angela Merkel, the German Chancellor and Vladimir Putin, he seem equivocate on whether or not he trusted one more than the other despite Merkel being such a stalwart -- friend to the U.S. for so many years.

DOUGHERTY: Yes, and that I think was a real shock in Europe that he would put those two people, Angela Merkel and Vladimir Putin pretty much in the same breath. Let's listen to exactly what the president- elect said.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Whom do you trust more if you would talk to them? Angela Merkel or Vladimir Putin?

DONALD TRUMP, PRESIDENT-ELECT: Well, I start off trusting both, but let's see how long that lasts. It might not last long enough.

(END VIDEO CLIP

DOUGHERTY: So again, a lot of concern about that. And then also we go on to the criticism of Angela Merkel. President-elect Trump saying essentially that she made a catastrophic mistake on letting immigrants -- migrants come into Germany. Let's also listen to precisely what he said on that.

(BEGN VIDEO CLIP)

TRUMP: I have great respect for her. I felt she was a great, great leader. I think she made one very catastrophic mistake, and that was taking all of these illegals -- you know, taking all of the people from wherever they come from. And I'll see her and I'll meet her and I respect her and I like her, but I think it was a mistake. And people make mistakes. But I think that was a very big mistake.

(END VIDEO CLIP)

DOUGHERTY: So, in that interview, he really covered a lot of different territory -- go through it quickly. On Iran, which of course he has criticized the Iran nuclear deal. He didn't say precisely what he would do with that. On Syria, he was critical of Russia. He said Russia had done a very bad thing with its air attacks in Syria. And that the Gulf States should be paying for safe zones.

Also, he said that he might restrict Europeans coming into the United States presumably because of concerns of terrorism. He said he wants to tighten U.S. borders. No surprise there. And he said Brexit, in which the U.K. pulled out of the European Union, that will end up to be great. And he wants to do an individual trade deal with the U.K.

And then finally, will he keep his twitter account? He said definitely. In fact, with millions and millions of people following him on social media it essentially gives him a way of sidestepping the press. Miguel, Christine.

[04:40:09] MARQUEZ: And it keeps us all interested in everything he says and does. Jill Dougherty, thank you very much.

ROMANS: All right, Donald Trump says his tough talk on trade is already convincing companies not to move jobs overseas. And while he still threatens to slap tariffs and border taxes on companies that do, he says it may not come to that. Here's what he told the German publication "Bild."

(BEGIN VIDEO CLIP)

TRUMP: My people hear that whether it's Carrier or Ford or any other, they say we're going to stay here or we're going to build in the United States. So they're going to build a car plant or they'll build their air conditioning plant and then we sell their air conditioners or they're going to pay 35 percent tax.

UNIDENTIFIED MALE: You did mention --

TRUMP: And you know what, there's not going to be any tax because they're not going to owe you.

(END VIDEO CLIP)

ROMANS: All right, there are two ways the incoming administration could try to stop companies from moving jobs overseas. But Trump seems to mash the two together in that sound bite. So let's explain what we think he is probably talking about.

The first is called a border adjustment tax. It will be part of the tax code -- part of tax reform. It would change the way companies are taxed for importing and exporting their goods.

The second is a tariff. This is that 35 percent number he keeps throwing around. This is a much stiffer penalty, and while it's not impossible to slap them on specific companies, tariffs are usually for specific classes of goods like steel or cars or chicken, and they only affect imports. You can't really slap it on just one company to try to punish a single company.

It has to be on a whole category. Trump also says he wants to be smart about trade and not beholden to any specific set of political ideals.

(BEGIN VIDEO CLIP)

TRUMP: Well I do believe in free trade. I love free trade, but it's got to be smart trade.

UNIDENTIFIED MALE: Yes.

TRUMP: So I call it fair trade. And the problem -- so I say to the people, do you want a conservative or do you want somebody who's got great deals, and they're all screaming, great deals, great deal. They don't care. There are no labels.

(END VIDEO CLIP)

ROMANS: There are no labels. It's fascinating because the tone has already changed in business and I've talked to several CEOs who have said, yes, the tone has definitely changed. You know, the biggest loser at this point seems to be some of these towns in Mexico where they were looking for billions of dollars in investment and they're not getting it right now.

The question is though as some of these companies are saying, oh, we're keeping jobs here, oh, we're investing here -- many of those plans were made two years ago -- three years ago. And now the winds have changed so they're crediting Donald Trump for allowing Donald Trump to keep the credit for that. We'll see if there's a -- MARQUEZ: If there is a border adjustment tax or a value added tax

and/or tariff, the bottomline is the consumer is going to pay. Hindsight

ROMANS: Yes. The bottom line is the consumer going pay. There are some economists who say the border adjustment tax is unfeasible and genius. Like if you could find a way to get that through the international trade courts that that could be something that initially at least would raise prices for consumers, but longer term would really disincentivize jobs going overseas and allow the middle class to, you know, raise its (INAUDIBLE) by wages. We'll just have to see if (INAUDIBLE).

MARQUEZ: Very interesting.

ROMANS: It is. It's fascinating.

MARQUEZ: Things are larger here today.

(LAUGHTER)

MARQUEZ: A growing number of Democrats now saying they'll boycott the inauguration after the president-elect's twitter tirade against Georgia congressman, John Lewis. But some say it's Lewis, the civil rights icon, who went too far.

[04:45:00] (COMMERCIAL BREAK)

MARQUEZ: A feud between president-elect Donald Trump and civil rights icon John Lewis escalating tensions in Washington over the Martin Luther King weekend. It started when Congressman Lewis said on NBC's "Meet The Press" that he won't attend Trump's inauguration explaining it this way.

(BEGIN VIDEO CLIP)

REP. JOHN LEWIS (D), GEORGIA: I believe in forgiveness. I believe in trying to work with people. It's going to be hard. It's going to be very difficult. I don't see the president-elect as a legitimate president.

CHUCK TODD, MEET THE PRESS HOST, NBC: You do not consider him a legitimate president? Why is that?

LEWIS: I think the Russians participated in helping this man get elected and they helped destroyed the candidacy of Hillary Clinton.

(END VIDEO CLIP)

MARQUEZ: Trump fired back at Lewis in a series of tweets. He wrote, "Congressman Lewis should spend more time on fixing and helping his district which is in horrible shape and falling apart. Not to mention crime infested rather than falsely complaining about the election results. All talk, talk, talk. No action or results. Sad."

The controversy has both sides digging in and more Democrats now saying they won't be at the inauguration either. CNN's Suzanne Maldeuz has the latest from Washington, D.C.

SUZANNE MALDEUX, CNN CORRESPONDENT: Good morning Christine, Miguel. Trump's war of words with Congressman Lewis, especially coming during the MLK weekend is deeply troubling to many African-Americans but Lewis is getting push back from both the RNC head, soon to be chief of staff Reince Priebus as well as the Vice President-Elect Mike Pence.

Some Republicans are clearly trying to give Congressman Lewis his props regarding his stature in the Civil Rights Movement, but at the same time they're coming to Trump's defense because they are vehemently opposed to any notion that Trump is not the legitimate winner of this controversial election despite Trump's own admission that Russia had a role in hacking it.

(BEGIN VIDEO CLIP)

MIKE PENCE, VICE PRESIDENT-ELECT: Donald Trump won this election fair and square. Thirty out of 50 states, including Georgia, more counties than any Republican candidate since Ronald Reagan. And to hear John Lewis, a man that I served with and that I respect, to question the legitimacy of the election and to say that Donald Trump will not be a legitimate president was deeply disappointing to me.

(END VIDEO CLIP)

MALDEUX: This all comes on the day where Washington is preparing for the inaugural event. We've seen dress rehearsals, band practice taking place at the Capitol. This week, law enforcement officials, they are gearing up not only for the close 800,000 expected in D.C. for the inauguration, but also for the close to 100 protests groups that have formally announced they are coming as well, Christine, Miguel.

ROMANS: All right Suzanne, thanks right there (ph). Members of Congress who found all of that very callous by the president-elect and so the list of Democratic lawmakers boycotting the inauguration of president-elect Trump is growing.

At least 24 House members are now on record saying they will not attend. Many of them point to Russia's meddling in the election. But the list expanded after Trump's dust-up with Congressman Lewis. Some Democratic lawmakers say they plan to participate in protest in Washington or in other districts.

[04:50:00] MARQUEZ: Donald Trump now has the lowest approval rating of any incoming president in the history of Gallup polling. Take a look at the numbers. Trump's approval rating stands at 44 percent with 51 percent disapproving. Contrast that with 83 percent approval rating for Barack Obama during his transition and approval ratings on the 60's for George W. Brush and Bill Clinton.

ROMANS: All right, the greatest show on earth is no more after more than 100 years in business. Ringling Bros. will close later this year. We'll tell you what brought down the iconic circus and we get to check on CNN Monsey Stream next.

(COMMERCIAL BREAK) ROMANS: Breaking news. At least 37 people are dead after a Turkish cargo plane crashes. Authorities say the Boeing 747 owned by Turkish airlines, departed from Hongkong and went down in Kyrgyzstan. They say the plane crashed while trying to land at Manas International Airport. Victims were rushed to the hospital with severe burns after a fire broke out. At least 15 homes in the area destroyed. Officials say poor visibility was reported at the time of that crash.

MARQUEZ: South Korean prosecutors seeking an arrest warrant for the heir apparent to lead Samsung electronics, Jay Y. Lee, in connection with the massive political corruption scandal. The Samsung vice chairman and other op South Korean business leaders are being investigated over allegations they tried to bribe South Korea's president Park Geun-Hye. A judge will decide whether to issue the arrest warrant and detain Lee at a hearing on Wednesday. His face says a briefing.

ROMANS: All right, real concerns in Evanston, Illinois this morning after the release of a dash cam video showing of officers arresting a black man accused of stealing someone's car. Turns out that car was his.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: On the ground. On the ground. Get on the ground! Turn around! Turn around!

(CROSSTALK)

[04:55:00] UNIDENTIFIED MALE: I'm cooperating.

UNIDENTIFIED MALE: Stop resisting. Stop resisting. Sir, you're on video.

UNIDENTIFIED MALE: All right. FYI.

UNIDENTIFIED MALE: Fine.

(CROSTALK)

(CROSSTALK)

UNIDENTIFIED MALE: Yes, this is my vehicle. I was trying to get something on the roof.

UNIDENTIFIED MALE: So when we tell you to get down, you got to get down.

UNIDENTIFIED MALE: Yes, sir.

(END VIDEO CLIP)

ROMANS: He is so calm saying sir -- it must have been terrifying. The incident began when a woman driving by saw Lawrence Crosby leaning against his car with what she says is a metal bar. She called police. Crosby says he was fixing something on the roof of his car. Evanston police gave us 40 minutes of pre-produced video and audio. In the 911 call, you hear the woman question whether her own concerns were racially motivated.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: What did the guy look like?

UNIDENTIFIED FEMALE: He was african-american with a black hood. I don't know if I'm like racial profiling. It just like I feel bad. I feel like --

UNIDENTIFIED MALE: Did you see him jimmy the door open or do anything?

UNIDENTIFIED FEMALE: He had a bar in his hand and he looked like he was jimmying the door open.

(END AUDIO CLIKP)

ROMANS: The driver was arrested. He was charged with disobeying officers and resisting arrest. You can see for yourself there exactly his manner the entire time. Those charges then were later dropped. Crosby is now suing and seeking damaging in excess of $50,000.

MARQUEZ: Amazing. Another even more amazing story, the update now on a story CNN has been following a you woman abducted as a newborn, finding meets her birth parents, Kamiyah Mobley was taken from a Florida hospital in July 1998 by someone posing as a nurse. Her heartbroken mother would bake a birthday cake each year for her miissing daughter. Kamiyah and her birth parents met for the very first time. Her father overwhelmed with joy.

(BEGIN VIDEO CLIP)

CRAIG AIKEN, KAMIYAH MOBLEY's FATHER: The first meeting was beautiful. It was wonderful. It could not have gone better. For anybody that's -- just keep hope alive. Just keep praying. Keep fighting. If it happened to me, it can happen to anybody.

(END VIDEO CLIP)

MARQUEZ: Meantime, Gloria Williams, the woman who allegedly abducted Kamiyah as an infant is facing a number of charges including kidnapping. Authorities say she did -- not only did she abduct the now 18-year-old, she used bogus documents to establish a new identity for Kamiyah. Investigators are now talking with Williams' family in hopes of learning more.

ROMANS: All right, 57 minutes past the hour. Let's go check on CNN MoneyStream. The U.S stock market closed today for Martin Luther King, Jr. Day and that might be a good thing. Right now, stock markets in Europe are dropping. Shares in Asia closing with losses overnight. Oil is down slightly after a big, big rally to end the year.

The three major U.S. averages are higher in 2017. The Dow is up about two-thirds of 1 percent so don't spend it all in one place. Nasdaq, the big winner though. It's got 3.5 percent gain in just the first 10 trading days of 2017. The S&P 500 up about 1.5 percent.

Some of the wealthiest people in the world are all heading to a small mountain town this week in the heart of Europe. The World Economic Forum kicks off in Davos, Switzerland. It is the meeting of the biggest names in global finance.

The goal is to come together and have strength in a global economy. Some criticize it as a meeting for the ultra rich and people who have (INAUDIBLE) globalization, right, year after year after year. An entire world view that is now in question of course around the world.

Each year, Oxfam International puts out its inequality report just as this Davos summer kicks off. This year, it's pushing the stat (ph). The eight richest men in the world own as much wealth as the bottom 3.6 billion people. And you Mark Zuckerberg, Bill Gates, Carlos Slim, Jeff Bezos, Larry Ellison, Amante Ortega, Warren Buffett, Michael Bloomberg. In total they are worth $426 billion.

The greatest show on Earth is closing its doors. Ringling Brothers and Barnum and Bailey' circus will perform it last show in May. The CEO of its parent company posting a message saying, "High operating cost and declining ticket sales were too much for the company to overcome. It also cited the phasing out of the elephant act which the company decided to do after frankly years of criticism from animal rights groups.

The circuit hits -- the circus rather hits about 115 cities each year. Ringling Bros. was founded in 1884 by five brothers in Wisconsin. Its current owner, Feld Entertainment bought the circus back in 1967. It turns out those elephants were a big draw.

MARQUEZ: I love elephants, and I'm not sure that the circus is the right place.

ROMANS: I did not grow up going to the circus. Some people grew up going to the circus.

MARQUEZ: I went once.

ROMANS: I think maybe I went once too. All right.

MARQUEZ: EARLY START continues right now.

ROMANS: Developing overnight, Donald Trump suggesting the head of the CIA is behind the leaks that caused a stir for the transition team. What did John Brennan say that has Trump in another showdown with intelligence, four days before he is worn in.