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EARLY START

Kavanaugh Says The Confirmation Has Become A National Disgrace; The U.S. Waging Battles Against Russia and China; U.S. National Security In Danger. Aired 4:30-5a ET

Aired October 5, 2018 - 4:30   ET

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


[04:30:00]

(BEGIN VIDEOCLIP)

HATCH: When you grow up I'll be glad to (ph).

UNIDENTIFIED FEMALE: (inaudible)

KAVANAUGH: This confirmation has become a national disgrace.

STEVENS, FORMER SUPREME COURT JUSTICE: His performance during the hearings caused me to change my mind.

UNIDENTIFIED MALE: Just Brett Kavanaugh just put out an op-ed, and overtly political play to convince Americans he's not political.

UNIDENTIFIED MALE: All eyes are on three Republican senators along with red state Democrat Joe Manchin.

UNIDENTIFIED MALE: This (inaudible) investigation is a (censored) investigation.

GRASSLEY: This is almost rock bottom.

(END VIDEOCLIP)

BRIGGS: Reporters, dissenters, even Brett Kavanaugh himself making a final emotional pitch. A seat on the Supreme Court on the line today.

ROMANS: The U.S. waging new battles against two superpowers. China and Russia now responding. We're live in Moscow and Hong Kong.

BRIGGS: And in just 30 minutes, the world finds out who wins the 2008 Nobel Peace Prize. You can bet the White House is watching that. Good morning, everyone. Welcome to Early Start this Friday morning. I'm Dave Briggs.

BRIGGS: And I'm Christine Romans. It is 31 minutes past the hour. We should know later whether Brett Kavanaugh has the votes to join the Supreme Court. Senate Majority Leader, Mitch McConnell, has set a key procedural vote for 10:30 a.m. Then senators still weighing how to play their hands will have to show some cards.

The final case for Kavanaugh coming from Kavanaugh himself. In a Wall Street Journal op-ed arguing he is an independent, impartial judge admitting he, quote, "might have been too emotional before the Senate Judiciary Committee last week."

(BEGIN VIDEOCLIP)

KAVANAUGH: This whole two-week effort has been a calculated and orchestrated political hit.

(END VIDEOCLIP)

BRIGGS: Kavanaugh writes, "at times my testimony reflected my overwhelming frustration at being wrongly accused. I know that my tone was sharp and I said a few things I should not have said. I believe than an independent and impartial judiciary is essential to our constitutional republic."

That seems unlikely to sway one man who knows the court well, former Justice John Paul Stevens. He says he changed his mind after that testimony.

(BEGIN VIDEOCLIP)

STEVENS: He has demonstrated a potential bias involving enough potential litigance before the court that he would not be able to perform his full responsibilities. And I think there's merit in that criticism. It's not healthy to get a new justice who can only do a part-time job.

(END VIDEOCLIP)

ROMANS: Overnight, Senate Judiciary Chairman, Chuck Grassley's office put out and executive summary of the FBI report confirming the bureau interviewed 10 people. Democrats clearly don't believe that went far enough.

(BEGIN VIDEOCLIP)

UNIDENTIFIED MALE: If that's an investigation, it's a bullshit investigation. The reality is that is not a full and thorough investigation.

(END VIDEOCLIP)

ROMANS: Attorneys for Christine Blasey Ford, Kavanaugh's first accuser, are calling the investigation a stain on the process on the FBI and on our American ideal of justice.

BRIGGS: The president last night made his own final push for Kavanaugh at a rally in Minnesota where he attacked Democrats.

(BEGIN VIDEOCLIP)

TRUMP: Their rage-fueled resistance is starting to backfire at a level that nobody has ever seen before. The people of America are going to reject the Democrat politics of anger and destruction.

(END VIDEOCLIP)

BRIGGS: Republican leaders' margin for winning Kavanaugh's confirmation now shaved from five to four with North Dakota Democratic Senator Heidi Heitkamp coming out against the nominee. In an emotional appearance on Fargo's (ph) CNN affiliate Heitkamp said it's important to tell a woman you believe the woman.

(BEGIN VIDEOCLIP)

HEITKAMP: If this were a political decision for me, I certainly would be deciding this the other way, but, you know, there's an old saying history will judge you, but most importantly you'll judge yourself. And that's really what I'm saying. I can't get up in the morning and look at the life experience that I've had and say yes to Judge Kavanaugh.

(END VIDEOCLIP)

ROMANS: That decision met with this response by protestors in front of the Supreme Court.

(BEING VIDEO CLIP)

UNIDENTIFIED FEMALE: Senator Heidi Heitkamp is on the right side of mystery.

(CHEERS)

(END VIDEO CLIP)

ROMANS: Four remaining Senators still undecided after having a look at the FBI report on Kavanaugh, that supplemental background check includes 45 pages of interview summaries and another 1,600 pages of information collected through the FBI tip line. Closed door briefings went late into last night. Manu Raju reports momentum appears to be shifting toward Kavanaugh.

MANU RAJU, CNN CORRESPONDENT: Good morning Christine and Dave. All eyes on the senate floor in just a matter of hours. Later this morning the senate will take a key procedural vote to advance Brett Kavanaugh's nomination to the Supreme Court. As we know is a 51/49 senate, with republican verses democrat.

That means if all democrats vote no and republican's loose more than one vote then this nomination could go down and loose to a democratic phi buster later this morning. We are watching four key senators, Lisa Murkowski of Alaska, Susan Collins of Maine, Jeff Flake of Arizona, and Joe Manchin of West Virginia. Manchin being the one democrat. All of them went to that briefing about the FBI investigation to Brett Kavanaughs past, and those allegations of sexual misconduct in which he furiously denied.

Now each of those senators have different interpretation about exactly what happened - what they saw in there. But two of the Senators Flake and Collins found it positive about the way the investigation was carried out, but Murkkowski and Manchin both noncommittal. Republicans want to try to advance the nomination to a confirmation vote as soon as Saturday. Christina and Dave.

BRIGGS: Manu thanks. If possible last minute wrinkle for the republicans. Montana Senator Steve Daines expected to miss a potential confirmation vote Saturday. And for good reason, he'll be at his daughters wedding walking her down the isle. That means GOP leaders maybe forced to hold open that confirmation vote for Kavanaugh overnight as the senator returns to Washington. A spokesperson for Senator Daines says he assured Kavanaugh he has made arrangements to get him across the finish line as needed.

ROMANS: More than 300 protesters, including actor Amy Schumer arrested Thursday as anti Kavanaugh demonstrations swarmed Capital Hill.

(BEGIN VIDEO CLIP)

(CHANTING)

(END VIDEO CLIIP)

ROMANS: Activist making there voices heard while law makers review the FBI's report on Kavanaugh. Signs in the window of that building reading we believe her, and we believe survivors.

ROMANS: A group of protestors even confronted republican Senator Orrin Hatch.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Why aren't you brave enough to talk to us and exchange that with us? Don't you wave your hand at me! I waved my hand at you!

(YELLING)

(END VIDEO CLIP)

BRIGGS: There were other protests in several cities besides D.C. including New York City at Trump Tower, in Portland, Oregon, and San Francisco. Protesters also demonstrating at Senator Jeff Flakes office in Arizona. Four women were arrested for trespassing.

ROMANS: In about a half hour the Noble Committee announces the winner of the Nobel Peace Prize. The winner will be selected from a total of 331 nominees, 216 individuals, 115 organizations.

North Korean leader Kim Jong-un, South Korea's Moon Jae-in, and President Trump are considered favorites to win the honor for their efforts to denuclearize the Korean Peninsula. Last year the prize was awarded to the International Campaign to Abolish Nuclear Weapons.

BRIGGS: You have to remember President Obama won the Nobel Peace Prize after eight months. And certainly the Trump administration would say why, if he is left out today?

ROMANS: All right, new hacking allegations against Russia, in a major accusation against of China undermining the U.S. A real reset here with the United States on these two super powers. What those countries are saying now?

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[04:40:00]

ROMANS: The government of China accusing Vice President Mike Pence of slander, and unwarranted accusations after he launched a broad attack against Beijing. The Vice President Thursday accused China of predatory economic practices military aggression against the U.S. and of trying to undermined President Trump.

(BEGIN VIDEO CLIP)

MIKE PENCE, US VICE PRESIDENT: To put it bluntly President Trump's leadership is working. And China wants a different American President.

(END VIDEO CLIP)

ROMANS: CNN'S Will Ripley live this morning from Hong Kong. He joins us with the very latest. Will, you know I've covered multiple administrations and there approach to China containment, engagement, all kinds of different variations of that. This is an administration that is resolved to be tough on both National Security and economic interests at the same time. This is a reset for the U.S. and China.

WILL RIPLEY, CNN CORRESPONDENT: It's a hard reset. And these are really - this is uncharted territory in terms of where this is going next. China unsurprisingly responded pretty quickly and strongly to the Vice Presidents speech saying that these are unsubstantiated claims, kind of pulled out of thin air. They said they have no desire to meddle in U.S. elections or internal affairs.

And in fact they say it's the U.S. that does that to other countries, not China. But this could really get turned up even further in the coming hours when the Pentagon is expected to release this report. Basically saying that China is putting U.S. National Security in danger, because it supplies a lot of the critical components that America needs to produce weapons.

[04:45:00]

So unlike the old days in World War II where America built all its weapons in factories in the U.S.A. well now that's all been outsourced, a lot of it's in China. And the Pentagon is concerned that if things were to escalate, if there was ever a critical situation such as war.

That if China's one supplying all the components for these weapons, and then things don't go well with China, which clearly right now they're not. Where does that leave the United States strategically? And so the U.S. is actually going to be injecting a lot of money into certain industries to try to - again this whole America First, turn the focus back on the U.S. Keep the U.S. more self sufficient and less reliant on the global supply chain.

So again the question that I asked at the top Christine, where is this headed? You know Peter Navarro wrote a very interesting piece in the "New York Times" today, he's one of the president's advisors on trade. And you should read some of this books that go back a number of years about China. It gives you some real insight into the mindset of at least this particular presidential advisor.

ROMANS: Yes, he's been awfully hoggish on China for a very long time. For a very long time he has laid over this economic - you know economic nationalism and defense vulnerabilities. This report that comes out today will show 300 vulnerabilities in the United States defenses because of outsourcing over the years. And not really paying attention to making sure America's not vulnerable.

All right, thanks so much for that, Will Ripley nice to see you.

BRIGGS: To that other confrontation Russia taking aim at the U.S. after the Justice Department indicts seven Russian intelligence officers an international hacking scheme. CNN's Fred Pleitgen, live in Moscow with more on the key evidence uncovered by counter intelligence officers. Good morning, Fred. What are we learning?

PLEITGEN: Yes, good morning Dave. Apparently the Russians hacked into the World Anti Doping Agency. And also some labs in the United States as well, and exposed the medical data and the names of about 250 athletes from the U.S. and from other countries as well, also apparently they tired to hack or at least were looking at the Westinghouse Electrical company as well.

But I can tell you Dave, yesterday was an extremely long day for the Russian Intelligence Service the GRU and for all the Russian officials who had to explain some of the things that were brought forward by Western Nations. First of all the Brits came out with several allegations. And then there was the Department of Justice. But the most damaging was probably from the Netherlands, from the Dutch side.

They say that they busted a plot by Russian agents to try and spy on the Organization for the Prohibition of Chemical Weapons, which is situated in Holland. And they presented a flurry of evidence. Photographs of the Russian agents arriving in Holland, meeting someone from the Russian Embassy, renting a car, packing it full of electrical equipment.

They even had with them Dave, and this is one of the most bazaar thing, a taxi receipt from the GRU headquarters to the Moscow Airport as well cell phones that were first initiated in the area around the GRU headquarters. So a lot of explaining to do from the Russian side, so far all they're saying is this is just western propaganda, and still saying that they have not seen any evidence despite all the things that I just mentioned, Dave.

BRIGGS: Despite a taxi receipt. All right, Fred Pleitgen live for us just before noon in Moscow. Thanks.

ROMANS: All right the highest ranking woman on Wall Street say's this about work, life balance.

(BEGIN VIDEO CLIP)

MARY ERDOES, CEO J.P. MORGAN: It's just not reality. You have to figure out how to do work life integration.

(END VIDEO CLIP)

ROMANS: Work life integration, how Mary Erdoes is helping other professional woman break back into the work force. CNN Business is next.

(COMMERICAL BREAK)

[04:50:00]

ROMANS: Two major meat recalls to tell you about, a salmonella outbreak triggering warnings for six and a half million pounds of ground beef. Health officials identifying Arizona based JBS Tolleson as the probably source. 57 cases of salmonella have been reported now in 16 states. The recalled products were sold nationwide under brand names including Wal-Mart.

Also Johnston County Hams recalling more than 89,000 pounds of ready to eat ham due to possible listeria contamination. So far they're have been four confirmed cases in North Carolina and Virginia, including one death, for more on both recalls go to cnn.com.

BRIGGS: Rap legend Suge Knight sentenced to 28 years in prison for the 2015 death of a man he ran over on the set of the movie "Straight Outta Compton". Video of the incident shows a truck driven by Knight running over two men after an argument killing Terry Carter. The maximum penalty for voluntary manslaughter in California is 11 years, but that was doubled because of Knights prior convictions.

ROMANS: Jeopardy host Alex Trebek is apologizing for his performance moderating a gubernatorial debate in Pennsylvania this week.

(BEGIN VIDEO CLIP)

ALEX TREBEK, HOST OF JEOPARDY!: The last time I looked the approval rating for the legislature was at 14 percent. The only thing with a lower rating in the commonwealth of Pennsylvania is the Catholic Church.

(END VIDEO CLIP)

ROMANS: That was a low point of a debate where Trebek spoke at length for time sharing his own policy options. He now say's he misunderstood is role. In a statement he say's " I thought that as moderator I was to provide a certain light hearted approach, while still being able to challenge the candidates on their record or positions. I didn't realize I was to ask a simple question and then let the gentlemen go at each other".

BRIGGS: The Dodgers strike first beating the Braves on game on of the NLDS, Joc Pederson a lead off home run to give the Dodgers and early lead.

[04:55:00]

More than enough for Hyun-jin Ryu. The Dodgers starter pitched seven shut out innings, Max Muncy and Enrique Hernandez also home are not pictured here, in the Dodgers six, nothing win.

Also drama in Milwaukee, not pictured here as the Brewers take game one over the Rockies. This one went to extra innings with Milwaukee taking a one nothing lead in the divisional series. Obviously some tape issues which we'll get sorted out in the minutes ahead.

ROMANS: I can just listen to you talk about it with out any pictures, that's OK.

BRIGGS: You know I could talk sports for hours, but let's proceed.

ROMANS: All right, America's companies need workers. Many people are now starting to recruit workers that have been ignored, namely women who left their careers to start families. But this is not charity. These women are professional rock stars. I took at one program helping woman jump back in.

(BEGIN VIDEO CLIP)

ROMANS: Andrea Chermayeff had a Harvard NBA and a successful career in private equity on Wall Street. She never thought she'd leave that behind. Then like many woman she had a family.

ANDREA CHERMAYEFF, WORKING MOTHER:If anyone who knew me as a young person would have said is Andrea going to be a full time mom? They would have said absolutely not. But when I had my child it changed me.

ROMANS: One year off became 15 years. Four children later Andrea wanted to come back to work. But despite her credentials she hit a road block.

CHERMAYEFF: The feedback I had gotten was that a 15 year career gap was insurmountable.

ROMANS: That's when she heard about JPMorgan's reentry program designed for professional woman with a gap in their resume. Spearheaded by Mary Erdoes who leads J.P. Morgan's $2.8 trillion Asset Management Division.

ERDOES: The crazy thing about woman at a certain age who are really succeeding at work, right, their success starts to peak exactly when they want to have a family. There are so many talented, highly talented women out there who during some part of their life they decided it wasn't both.

It was one or the other. They then fast forward through several years and they find themselves wanting to try to do the work track again. But that's really hard to figure out. And as a company we want that talent. ROMANS: Not just want, need. As America's labor market tightens companies are starting to recruit from talent pools that have largely been ignored. Morgan Stanley, Credit Suisse, and Goldman Sachs all have similar programs. Professional careers often mean demanding work schedules. Mary Erdoes says work-life balance is a myth.

ERDOES: There are many, many hours you have to spend at work to do your job. And the concept of it being in balance it's just not reality. You have to figure out how to do work-life integration.

ROMANS: Andrea, now a lending advisor at JPMorgan Chase, say's woman shouldn't be afraid.

CHERMAYEFF: Don't fear the gap. Be proud of it.

(END VIDEO CLIP)

ROMANS: Don't fear the gap. You know, and there's so many companies with such a tight labor market right now. They need these rock star women. And some of these woman, they leave the workforce by choice because they want to raise their kids.

BRIGGS: Yes. Every woman I know fits that description.

ROMANS: Yes, and there's a place in this economy there's a place to come back. And companies are being more sensitive and I guess knowledgeable about how to make sure that work-life integration is the way it is.

BRIGGS: That balance.

ROMANS: You know leave your kid, your family behind, because it's all one big package.

BRIGGS: Don't fear the gap.

ROMANS: Don't fear the gap.

BRIGGS: I like that message.

ROMANS: All right, let's get a check on CNN Business this Friday morning. Bond yields are at multi year highs. That's hitting global stocks. Europe and Asia lower right now. On Wall Street the Dow lost 200 points, its worst drop in almost two months. The NASDAQ and the S&P 500 also fell.

The yield on the benchmark 10 year treasury, look at that. That is a huge move, that is a seven year high. Topping 3.2 percent, that's the largest daily jump since the 2016 presidential election. Investors don't like it when bond yields rise too fast.

Yields are rising because the U.S. economy is so strong. Data this week showed low jobless claims and high factory orders.

Tesla CEO Elon Musk already in trouble with the SEC, now he's mocking it, calling it the short seller enrichment commission, SEC on twitter. Musk frequently criticizes the short sellers or investors who bet against Tesla, last week Musk settled with the SEC over charges he mislead investors. A deal billion Mark Cuban urged Musk to make. The "Wall Street Journal" reports Cuban called Musk.

Told him to take the deal, warning Musk he'd likely face a lengthy court battle other wise. Cuban himself fought with the SEC for five years on charges of insider trading. Cuban was later cleared. But it was an experience Cuban doesn't soon forget.

This week marks one year since the Me Too movement took off. And since then workplace sexual harassment claims have spiked. That's from the Equal Employment Opportunity Commission. It say's that sexual harassment charges increased 12 percent, law suits increased 50 percent.

The EEOC say's workplace harassment dominated the headlines and then more people sought help as they saw it was in the news. Hits on its website more than doubled in the past year. If there's one thing that has come out of this, one thing, it's that people should be able to go to their HR.

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