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EARLY START

How Did This Monumental Oscar Gaffe Happen?; Trump's Day Focused On Health Care; White House Bars Major Media Outlets From Briefing. Aired 5-5:30a ET

Aired February 27, 2017 - 05:00   ET

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


(BEGIN VIDEOTAPE)

DAVE BRIGGS, CNN GUEST ANCHOR: -- just one problem, "La La Land" did not win. The moment bringing (inaudible) flash backs of Steve Harvey announcing the wrong Miss Universe in 2015. After two and a half minutes of acceptance speeches and on-stage celebration for "La La Land," the mistake was announced.

UNIDENTIFIED MALE: We lost, by the way.

JORDAN HOROWITZ, PRODUCER, "LA LA LAND": Guys, I'm sorry. No. There's a mistake. "Moonlight," you guys won best picture. This is not a joke. I'm afraid they read the wrong thing. This is not a joke. "Moonlight" has won best picture. "Moonlight," best picture.

UNIDENTIFIED MALE: Warren, I'm sorry.

UNIDENTIFIED MALE: Guys, this is very unfortunate what happened. Personally I blame Steve Harvey for this. I would like to see you get an Oscar anyway. Why can't we give out a bunch?

HOROWITZ: I will be proud to hand this to my friends at "Moonlight."

UNIDENTIFIED MALE: That's very nice.

WARREN BEATTY, BEST PICTURE PRESENTER: Hello. Hello. I want to --

UNIDENTIFIED MALE: Warren, what did you do?

BEATTY: I want to tell you what happened. I opened the envelope and it said Emma Stone, "La La Land." That's why I took such a long look at Faye and at you. I wasn't trying to be funny.

UNIDENTIFIED MALE: You were funny.

BEATTY: Thank you very much.

UNIDENTIFIED MALE: Wow.

BEATTY: This is "Moonlight," the best picture.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN ANCHOR: Wow. BRIGGS: So what the heck happened? Let's ask senior media correspondent and host of "RELIABLE SOURCES," Brian Stelter.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: "The Daily News" headline is, you had one job. You watch this video. The more you watch, the better and better it gets. You are looking for new clues in it. I think what we know for sure is that those two famed actors had the wrong card on stage.

Warren Beatty and Faye Dunaway, they were up there opening this envelope, believing it was the "Best Picture" envelope, when in fact it was the "Best Actress" envelope for Emma Stone. So they see Emma Stone's name. You can see it Warren gets confused here.

Hands it over to Faye. She reads the words "La La Land" because those are printed on the card for best actress, and then a couple minutes later, once the stars are on stage, people started to figure out, something has gone wrong.

So PricewaterhouseCoopers is taking responsibility. They are the accounting firm which has doing this for 83 years. They are out overnight with a statement apologizing and they are taking responsibility for the error that was made during the award announcement for best picture.

They went on to say the presenters had mistakenly given the wrong category envelope. When discovered, it was immediately corrected. They did not say by who. I didn't think it was immediate, but that's a statement from PricewaterhouseCoopers.

There will be more fallout, of course, but what we know is that somebody handed the wrong envelope to Warren Beatty and Faye Dunaway and that's what happened.

ROMANS: And "Moonlight" won.

STELTER: Yes, "Moonlight" won.

BRIGGS: But they lost because of all of this, right. I mean, they are the loser in all of this.

ROMANS: Let's talk to the "Moonlight" folks. Stephanie Elam talked to them after the awards ceremony. She asked how it felt.

(BEGIN VIDEO CLIP)

STEPHANIE ELAM, CNN CORRESPONDENT: When they said this is wrong. "Moonlight" actually won. What did you guys think?

TREVANTE RHODES, ACTOR, "MOONLIGHT": We thought it seemed it was a joke. It's Jimmy Kimmel.

ELAM: Right.

RHODES: That's the most disrespectful joke you could play on somebody, OK, or it was like "Moonlight" is the real winner. Paying homage. Yes. But then it was real and that was just the most unique moment.

(END VIDEO CLIP)

ROMANS: "La La Land" got six awards overall. The best supporting actor was also from the film "Moonlight." Viola Davis also was the best supporting actress for "Fences." But, you know, this club sort of taking kind of all the (inaudible) headlines.

STELTER: It really does. It really does. There were a number of films winning various awards last night. You mentioned "La La Land" being the biggest overall with six wins. "Fences" and "Arrival" for a couple. Actually Mel Gibson's "Hacksaw Ridge" picked up a win.

And then of course, there were historic wins for three big companies. You don't think about at the Oscars, Amazon, Netflix and ESPN for that documentary "O.J. Made in America," which we all thought was a TV show, but it was entered as a film. It was able to win best documentary. That will rear.

[05:05:06]Amazon and Netflix, they are trying again in the movie business. They have succeeded in a big way. Both winning for short film and one for "Manchester By The Sea." Interesting to see the new players in the Oscars.

But as you said, you know, it all comes down to the final two or three minutes. First we have the election, a surprise outcome. Then the come from behind victory at the Super Bowl by the Patriots, and now this third shocking television moment.

BRIGGS: And you want to link him, Billy Crystal, tweeted, "Amazing ending, which it happened on Election Day."

STELTER: So many liberals saying that. That's right trying to link this to Election Day.

BRIGGS: It's not an overly political night, though, other than some tweets.

STELTER: No, I think, you know, your typical Hollywood celebrity liberalism was on display trying to show and tell diversity and suggest the president at one point (inaudible) the president is racist. There were certainly some jabs to the president and the new administration.

But I would say that was also overshadowed by this moment. You know, there was a lot of speculation if Donald Trump would weigh in on the Oscars. Kimmel tried to get him to weigh in by tweeting at the president during the show.

We will see if the president this morning responds to Kimmel's message there. Normally he wakes up and tunes in. I can't wait to see what he says about "Moonlight" and "La La Land."

BRIGGS: It's 5:06, Mr. President. Get on it.

ROMANS: Brian Stelter, thank you so much. The president is busy. He has the outline of the first budget coming together too. What programs are safe? Which agencies could see big cuts? We have that next.

(COMMERCIAL BREAK)

[05:10:43]

BRIGGS: This morning, the big buildup begins, President Trump's first address to the joint session of Congress that happens tomorrow night. But first, the president has a busy day ahead of that speech. A special focus today on health care including meetings with the governors, health insurers, House Speaker Paul Ryan, and Senate Majority Leader Mitch McConnell. Now last night, the president joked about repeal and promised a, quote, "very special replacement."

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: As most of you know, the Obamacare has had tremendous problems. I won't say in front of the Democrats. I'll just say to the Republicans, it doesn't work. We will have it fixed and we are going to repeal and replace. You will see something very, very special.

(END VIDEO CLIP)

BRIGGS: The White House also set to release outlines of its first budget proposal. Officials tell CNN the Trump budget will safeguard Social Security and Medicare. But some other federal agencies including the EPA won't be spared.

ROMANS: Let's bring back Brian Stelter and bring in Ellis Henican this morning. He's a political analyst, who writes "Trump's America" column for Metro papers. Nice to see you. Welcome, Ellis.

You know, I want to talk policy in a minute because there is only so much of the federal budget you can shrink and not touch Medicare. You know, it's like a math problem there.

First, the tone, I mean, I think the tone will be really key from the president on Tuesday. What are you hearing? What do you think we will hear?

ELLIS HENICAN, AUTHOR, "TRUMP'S AMERICA" COLUMN FOR METRO PAPERS: Well, it's a tough guy tone, right? Think about what's going up. Military is going up. Law enforcement is going up. Justice Department will get more money. Almost everyone else that is discretionary is going to get less. So less environmental things, right, less welfare-ish kind of programs, National Endowment for the Humanities, if you expecting a grant from them, Christine, forget about it.

BRIGGS: We understand uplifting and positive is what Jeff Zeleny is telling -- the White House is telling Jeff Zeleny. Have we seen that from President Trump, Brian?

STELTER: Well, that reminds me of the inauguration message, right? Many Trump supporters said the inauguration message was uplifting and positive. A lot of other folks (inaudible) on that word, carnage, on American carnage, and said the speech was rather dark and dire. I think we're going to have that same disconnect tomorrow night.

ROMANS: Let's talk a little bit about -- we will hear from Sean Spicer today and talk about this sort of feud taking a new level with the press. On Friday, maybe some people missed this. There were people excluded from an off-camera gaggle. Do you think there's any kind of a truce between the media and the Trump White House?

STELTER: I'm going to take Bannon at his word. Steve Bannon saying it's only going to get worse in this battle. In some cases, the administration wants this battle with the press, the media. On Friday, it was CNN and BBC, the "L.A. Times," "Politico," the "New York Times," all kept out of an off-camera briefing with Sean Spicer.

This is when reporters file into his office and ask questions off camera. Let's be honest, this was room for those outlets. This was a premeditated choice not to have these outlets in the room partly because CNN and the "Times" and others have been very tough with investigative reporting about Trump.

BRIGGS: It won't hurt him with his supporters, but how will this play across the country, Ellis?

HENICAN: Well, not well, and don't forget, by the way, the war with Sean is now also with his own staff. Calling these folks in and asking to see their cell phones.

STELTER: What an amazing story over the weekend, a leak about a leak investigation.

HENICAN: Right. When your boss wants to review your cell phone, you're in trouble. We all do a lot of things on our cell phones. It is particularly strange -- turn it over. Turn it over. Let us be the judge.

STELTER: That is the point. We are seeing these isolated incidents. This investigation into the staffer cell phones and keeping reporters out of this briefing. We don't know if those are isolated incidents or just the start of something that will continue to happen. So this week will be crucial. We'll find out.

ROMANS: One thing about Friday, I mean, all of a sudden the top headline became some media excluded from this meeting. It wasn't about the Russian leaks investigation anymore. So they did turn the page on the story by actually using the press and headlines in a way.

HENICAN: Yes. That is a technique we have seen a lot. As a reporter, it is hard to know what to do. Crazy stuff is happening. You don't want to ignore it. It reveals a lot of things about our government. But you're right, at the same time, sometimes it can drag us away from things that might be more complicated, but in the long run more important.

BRIGGS: Last word on this media ban, do you expect this to continue in the week ahead, Brian?

STELTER: I would be surprised if it is the last time. So the question is what will news outlets do about it? Will we see solidarity? After Friday's incident, the "Wall Street Journal" and "Bloomberg" says if they try that again, we will not participate in the briefing.

[05:15:07]So will we see solidarity among the White House press corps? The White House press corps is not known for that in the past, but if ever there was a time for solidarity, it is probably now.

ROMANS: Meantime, the president is meeting with insurers. You heard he said it will be great for Obamacare. He's going to have a great replacement for Obamacare and he's going to release his budget. There is a lot of stuff happening this week, Ellis.

HENICAN: That's right. The term very special sounds ominous to me. We are going to get a very special health plan. When my parents talked like that, nothing good was coming.

ROMANS: Donald Trump uses words in different ways. I don't know what that means.

HENICAN: That's the point. I think the point is we don't know what it means. The details have always been a problem. If it has been easy for seven years, the Republicans would have had a plan. It is looking increasingly like what we may really get is a rebranding of Obamacare. Not so much a repeal and replace.

STELTER: But you know, talking with Trump supporters in Atlanta this weekend, it was clear, between these executive orders and meetings at the White House with various constituencies, he is showing action. Whether that action is a separate issue. He is showing that he is doing things. That is making Trump supporters feel confident in him. You see the polls, there is a clear divide. His voters are with him right now.

HENICAN: But if it is a repackaging of Obamacare, is that something Trump supporters are going to be on board with?

STELTER: That's the billion dollar question.

ROMANS: It is how they sell it and it's how the optics of it. If you can repackage it but make it look like we got rid of the old and here is the new one then everybody is happy in a way. It is all how they sell it.

HENICAN: All the optics in the world are not going to save it from taking somebody's health insurance away.

ROMANS: We are talking about Trump supporters. We are talking about retired coal miners. Don't go away.

More details could emerge on the president's plan for health care today. It resembles of what GOP lawmakers are proposing, millions of Americans could lose coverage. A draft of the bill obtained by CNN shows three reasons why.

First, subsidies based on income would be replaced with tax credits based on age. That may drive costs too high for older Americans and those with lower incomes or people who live in areas with higher medical costs.

Second, the GOP plan eliminates enhanced funding for Medicaid. This was expanded under President Obama to help states support low income adults. The cuts to funding there would leave some people without coverage.

Finally, the plan keeps protections on pre-existing conditions, but allows insurers to charge more for people who let their coverage lapse. That could price out some potential enrollees. But Republicans think this would be key to drawing and keeping younger, healthier people enrolled in coverage.

Something Obamacare frankly has struggled to do. That's been one of the fatal flaw of Obamacare at this point.

BRIGGS: Can we get further concessions from the insurers who he meets with today? Many of them are already bailing on Obamacare and now you want further concessions. That's going to be tough.

The Oscars were not the only surprise ending this weekend. Who came from behind to win the Daytona 500? You won't believe it. Coy Wire with the "Bleacher Report" next.

(COMMERCIAL BREAK)

[05:22:40]

BRIGGS: An outstanding end of the start of NASCAR season. I was on the edge of my couch. We'll get to that in a moment, but first, the college hockey player facing criminal charges after attacking a referee on the ice.

ROMANS: Coy Wire has more in the "Bleacher Report." Hey, Coy.

COY WIRE, CNN SPORTS CORRESPONDENT: Good morning, Christine. Nice to meet you, Mr. Dave. I haven't seen you yet. Freshman Brandon Day of Eerie Community College was arrested and reportedly charged with assault. It happened in the final seconds of last night's junior college championship game between ECC and Dakota College. Here is a look at the video.

His team was down 7-4 at that time. Day with 39 seconds left in the game storms out of the penalty box and slams the referee to the ice. You can even see one of his teammates get in there to try to calm him down. Day was taken into police custody. CNN Sports has reached to the school for a response to see what caused this flare-up, but we have not heard back from the school.

Kurt Busch only led one lap of the Daytona 500, but it was the one that counted, the last one. Busch made history. This is the first time in 59 years of NASCAR's most prestigious race that the winner held the lead for only one lap. The number 41 car grabbed that lead and never looked back because he couldn't. Listen to this.

(BEGIN VIDEO CLIP)

KURT BUSCH: My rear-view mirror fell off with 30 to go. I thought that is an omen. The more I look at the race, throw caution to the wind and elbows out.

(END VIDEO CLIP)

WIRE: No need to look back when the prize lies ahead. Busch had finished runner up three times at Daytona. He finally gets the big win on his 16th attempt.

Warriors star, Steph Curry, with the dunk of the weekend. Check this out. Grabs the money ball in mid-air. Slam dunks it in the $2500 bucket for the fan playing a giant game of skee ball. It was the money ball, so it doubled the value. Steph Curry led the team to victory and he led this fan to 5,000 bones. Not a bad weekend.

BRIGGS: Who picked up the tab, Coy?

WIRE: Really. How great? I love he runs back into the time-out. Hey, Coach, I'm paying attention. Good thing they won that game.

BRIGGS: A real good guy. Great win for Kurt Busch. Tony Stewart's first win as an owner too. So that was a great race for NASCAR.

[05:25:09]WIRE: Exciting race. Crashes everywhere. It was like bumper cars out there.

ROMANS: All right, Coy, nice to see you.

Great night at the Oscars for "La La Land" until the very end. We are going to show you the monumental flub that has everybody talking this morning.

(COMMERCIAL BREAK)

ROMANS: If you went to bed thinking "La La Land" won best picture, you went to bed too soon. The envelope slip up into the Oscars. Welcome back to EARLY START this Monday morning. I'm Christine Romans.

BRIGGS: I'm Dave Briggs. Poor Warren Beatty. He did nothing wrong. Hollywood's biggest night ends with a bang. Not the one anyone expected. A bizarre, colossal blunder marred the end of the academy awards.

It all started when legendary stars, Warren Beatty and Faye Dunaway took the stage to announce the winner for best picture.

(BEGIN VIDEO CLIP)

FAYE DUNAWAY: La La Land.

(END VIDEO CLIP) ROMANS: Just one problem, "La La Land" did not win best picture. The moment --