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EARLY START

Pompeo in Saudi Arabia; Death Toll from Hurricane Michael Reaches 19. Aired 4-4:30a ET

Aired October 16, 2018 - 04:00   ET

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


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DAVE BRIGGS, CNN HOST: The Secretary of State is now in Riyadh meeting with the Saudi King and Crown Prince this hour. The Saudis preparing to admit a journalist was killed during an interrogation gone wrong.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: He owes the country an apology.

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CHRISTINE ROMANS, CNN HOST: President Trump and Elizabeth Warren sparing after a DNA test shows the Senators distant Native American ties.

BRIGGS: Crews finishing a final sweep of the hardest hit parts of Florida following Hurricane Michael. Residents will be allowed to go back to survey damage tomorrow.

ROMANS: And is a beer shortage enough to make you care about climate change?

Good morning and welcome to Early Start everyone. I'm Christine Romans.

BRIGGS: You have my attention. Dave Briggs. It's Tuesday, October 16, 4:00 am in the East. It is three weeks until the midterm elections, but it was two weeks ago today that we last saw Jamal Khashoggi enter that consulate.

Just about an hour ago Secretary of State Mike Pompeo landing overnight in Riyadh, Saudi Arabia to meet with King Salman and Crown Prince Mohammad bin Salman or MBS about the presumed death of "Washington Post" journalist Jamal Khashoggi.

Overnight Turkish investigators left the Saudi consulate in Istanbul after spending about nine hours searching that building. ROMANS: Now two sources tell CNN the Saudi's are preparing a report. Expected to acknowledge Khashoggi's death and call it the results of an unsanctioned interrogation gone awry.

Senior International Correspondent, Sam Kiley, standing by live for us in Riyadh. Sam?

SAM KILEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the first indication we got of this new line from the Saudi's really came from Donald Trump. Once again, perhaps, a blurting confidences that were shared with him, in this case, in a phone call with King Salman when the U.S. President talked about rogue killers that might be behind it.

But, we're expecting to hear that this was a rendition, but Mr. Khashoggi was lured into the embassy with a view to bringing him back to Saudi Arabia by elements of Saudi Intelligence, but -- and this is the important part of what the expected narrative will be, but not with the knowledge or sanction of either the King or MBS, the Crown Prince.

Now, this represents a really radical shift from the position of the Crown Prince himself in an interview soon after Mr. Khashoggi disappeared, when he told the Bloomberg News Agency that "The Washington Post" journalist had left the consulate and that anybody was welcome to go and inspect those premises. Throughout the period that followed, the Saudi line have been absolute denial that they were in anyway involved in this disappearance.

The Attorney General here, it has been confirmed has been ordered to open an investigation into his dissappearnce and I think they're inching towards the position where they can agree a joint statement, perhaps with Mr. Pompeo today, and try -- both nations to try and put his behind them, Christine.

ROMANS: Put them -- put it behind them. A big question with the U.S. response and the Congressional response would be. Sam, CNN has learned the Kingdom of Saudi Arabia considered delaying the Saudi Investment Conference of the Davos in the Desert until after the investigation. A lot of groups and executives have dropped out. What do we know about plans for the Treasury Secretary, Steven Mnuchin?

KILEY: Well, the Trump Administration that has said that Mnuchin will probably make a decision or he has until Friday to make a decision on whether or not he comes to Davos in the Desert.

In a sense though, there've been so many cancellations. I think there really is serious consideration being put into postponing it because, above all, they don't want a narrative here only being that nobody turned up to this very important meeting.

ROMANS: All right, Sam Kiley in Riyadh. Thank you so much for that.

BRIGGS: "The Washington Post" where Khashoggi was a contributing writer has published an op-ed entitled, "Who Needs Saudi Arabia?" The newspaper's editorial board argues the president is overvaluing his relationship with the kingdom. ROMANS: They write, the reality is that Saudi Arabia has everything to loose from a break in relations while the United States no longer needs the kingdom as much as it once did. Whatever the outcome of this Khashoggi case, a fundamental reshapping of the relationship mandated by Congress, if necessary, is imperative.

BRIGGS: Secretary of Defense, James Maddis, making it clear overnight, he has never talked with President Trump about leaving the Administration. This comes after a bruising "60 Minutes" interview where the president said Mattis was sort of a Democrat and he claimed he knew more about NATO than his Secretary of Defense was once a top NATO commander.

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But on a plane to Vietnam overnight, Mattis said this - I'm on his team. We have never about me leaving and as you can see right here, we're on our way. We just continue doing our job.

ROMANS: Mattis later told reporters he and the President spoke, each saying they are 100 percent with the other. CNN reported in June on differences between Mr. Trump and Mattis that were leading to friction in the Pentagon.

BRIGGS: Could we be witnessing a preview of the 2020 Election? Well President Trump and Elizabeth Warren duking it out over a DNA test that confirms the Senators distant Native American ties dating back six to ten generations, which means she is between 1/64 and 1/1024 Native American.

When asked if owes the Senator an apologize for all his Pocahontas cracks - President Trump turned the tables.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: No I don't, absolutely; I don't owe her (ph). She owes the country an apology.

What's her percentage? 1/1000?

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ROMANS: At a rally in July, the President did promise to donate $1 million to charity if Senator Warren took a DNA that showed she was, QUOTE, an Indian. He now claims the offer was contingent on her winning the Democratic nomination. I listened to that quote, there was no contingency there.

BRIGGS: No.

ROMANS: Warren firing back on Twitter saying - we all know why Donald Trump makes creepy, physical threats about me, right. He's scared. He's trying to do what he always does to women who scare him - call us names, attack us personally, shrink us down to feel better about himself. It may soothe his ego, but it won't work. BRIGGS: The Cherokee nation, though, not assumed by any of this. Its

Secretary of State, Chuck Hoskin Jr, releasing this statement - using a DNA test to lay claim to any connection to the Cherokee nation or any tribal nation, even vaguely (ph), is inappropriate and wrong. Senator Warren is undermining tribal interest with her continued claims of tribal heritage. For her part, Warren says she respects the distinction between tribal family history and tribal affiliation.

ROMANS: Right, officials say that nearly 250 immigrant children remind in U.S. custody separated from their families. Court documents show most of the children have parents who were removed from the United States. Of those, just 18 are currently in the pipeline to be reunited with their parents in their home countries - 18.

The filing in the ACLU class action suit against the separations comes as the Trump administration considers a new pilot program. This one could result in more family separation. The plan would allow migrant families to either remain together while their case moves through the system, or have just the children released while their parents remain behind bars.

BIGGS: A federal judge throwing out Stormy Daniels defamation lawsuit against President Trump. The adult film star sued in April when the President accused her of a total con job in a Twitter after she claimed a man had threatened her to stay silent about her alleged affair with Mr. Trump.

District Judge James Otero ruling the tweet in question constitutes rhetorical hyperbole, normally associated with politics - in other words, freedom of speech. Otero also ruled the President is entitled to attorneys fees. Stormy Daniels lawyer, Michael Avenatti, has already filed a notice of appeal.

ROMANS: Tributes are pouring in this morning for Paul Allen, the billionaire co-founder of Microsoft. The investor, entrepreneur, and philanthropist died Monday at 65 of complications from non-Hodgkin's lymphoma.

Allen launched Microsoft with Bill Gates in 1975, a few years after the two met at a Seattle private school. Allen left the company in 1982 after he was diagnosed with Hodgkin's disease.

Gates remembering Allen as a true partner and dear friend - personal computing would not have existed without him.

BRIGGS: Allen remained on the Microsoft board as he launched his own foundation and an investment firm and he bought two sports teams - the NBA's Portland Trailblazers and the NFL's Seattle Seahawks.

Quarterback Russell Wilson honored his boss in a tweet - we have lost a friend and a giant, Mr. Allen, thank you for your extraordinary vision, your abundant generosity, and for believing in all of us. By example you made us all better, kinder - may you rest in peace. Go Hawks.

Also a part founder of the Sounders soccer franchise, he was a legend in the sports industry, as well as software.

ROMANS: But honestly, his early ambitions and early visions changed the way all of us lived our lives and it's kind of rare to be able to say that.

BRIGGS: How many can you say that about?

ROMANS: I mean, truly, truly a visionary with Bill Gates and Steve Jobs up there too.

BRIGGS: Yes, it's safe to say.

ROMANS: All right. Nine minutes past the hour, the economy is thriving but the deficit is at a six year high. Why the trend shows no sign of slowing.

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ROMANS: President Trump and the First Lady getting a close up look at the devastation last night, Hurricane Michael. They handed out water to storm victims in the Florida panhandle, visited a Red Cross center, and met with hard-hit farmers in Georgia, the President, praising the storm response and, seemingly, in saw of Michael's power.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: To see this, personally, it's - it's very tough. It's very - very tough. Total - total devastation.

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BRIGGS: The death toll from Hurricane Michael now stands at 19 in four states. One body was found Monday in Mexico Beach. The number of missing people there though dropped from more than 30 to just three. Crews are finishing their third and final sweep of the area using cadaver dogs.

ROMANS: Mexico Beach residents will be allowed to return tomorrow. They cannot stay there. They have an 8 p.m. curfew in place until further notice. More than 230,000 customers in Florida still without power in stifling heat, residents in the hardest hit areas are relying on airdrops for food and water. Schools are still closed.

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Look at that, in Washington, Liberty, Jackson, Gulf, Gaston, Franklin, Calhoun, and Bay counties.

BRIGGS: Well, much of Mexico Beach was obliterated by Hurricane Michael. One structure is still standing high above the debris. Check out the Sand Palace.

ROMANS: Wow. BRIGGS: It's an incredible image, a three story, four bedroom vacation rental on stilts, its roof, windows, and doors largely in tact after the storm. Although the home will need some repairs, the New York Times reports the Sand Palace was built to handle the big one, able to withstand 250 miles an hour wind. The co-owners of the home will be on New Day later this morning. It doesn't look...

ROMANS: They built it...

BRIGGS: ...real does it?

ROMANS: ...for this - they built it, concrete stilt - wow, unbelievable.

BRIGGS: No neighbors.

ROMANS: It will need repairs, but...

BRIGGS: It's incredible.

ROMANS: ...there you go. All right, the federal government is racking up the bills, spending so much more than it takes in. It is running the largest budget deficit in six years. A sign that tax cuts are curbing how much money the U.S. collects.

The Treasury Department says the U.S. deficit rose 17 percent this year to $779 billion. That's the highest since 2012 when the country was spending big to stimulate a struggling economy. But 2018 is very different. This economy is strong and growing.

Typically, you want to shrink deficits during boom times. The government collects more from taxpayers. But thanks to tax reform, the U.S. is spending more than it takes in, a lot more. Spending rose 3 percent, fueled by higher interest payments on debt, and big increases to defense spending in the defense budget.

But tax revenue failed to keep up because of tax cuts. Government revenue was flat, corporate tax collection down 22 percent, or $76 billion. The White House defended the tax cuts.

They say it's boosting economic growth which will eventually increase tax revenue. The Treasury Secretary, Steve Mnuchin, said the White House will eventually cut wasteful spending to make up the difference. There are concerns on the left, among progressives, about cutting potentially entitlement. That's one place to go after if you're going to cut spending.

BRIGGS: Yes.

ROMANS: But, clearly, that big gap is so interesting because under a Republican president...

BRIGGS: Right.

ROMANS: ...Republican control of - of Congress. You have just this, you know, spending and deficit. BRIGGS: You can't help but wonder if deficit concerns are gone as a concern for the Republican Party in the future, gone with Paul Ryan who is exiting Congress.

ROMANS: There's this old saying that when, you know, you - you fix the roof when it's sunny, right? Everything about the economy...

BRIGGS: Yes.

ROMANS: ...you know, on deficits, on spending, but it's really sunny and we're not fixing the roof.

BRIGGS: Strange times. Imagine this happening to your plane.

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BRIGGS: Renewed concern about drones after tests show that bigger aircraft may not always win. Who won this? The bottom of the ninth, bases loaded, two outs, see how the drama unfolded between the Brewers and the Dodgers next.

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ROMANS: The Arch Bishop of Washington releasing the names of 31 clergy members credibly accused of abusing minors dating back 70 years.

None of them are in active ministry. Eighteen of them have been previously arrested. The list includes three priests who served in temporary roles in the Archdioceses parishes or schools. The release of the names comes four days after Pope Francis accepted the resignation of Washington Cardinal Donald Wuerl for his handling of clerical sex abuse.

BRIGGS: This year more than half of states facing a polio like illness that paralyzes children. Fifteen states told CNN they had confirmed cases of AFM in 2018. Colorado had the most confirmed cases with 14. Seventeen states said they cases that were suspected or being investigated. AFM symptoms can include sudden limb weakness, facial drooping, difficulty swallowing or slurred speech.

ROMANS: For a three African-American Mrs. America contestants say, the pageants white CEO and President, David Marmel insulted them in a conversation where he used the N word and evoked racist stereotypes.

They say it happened in August at the 2018 Mrs. America competition in Las Vegas. A white contestant who says she overheard the conversation also spoke at a news conference Monday. The contestants have no plans to sue, they just want an apology and assurances no one will face the same treatment.

David Marmel tells CNN, he was blindsided by these accusations. He called them, "untruthful, self-serving nonsense," ordering on reverse discrimination. BRIGGS: New impact tests prove large aircraft won't always win a

collision with small drones.

A test designed to mimic a mid-air collision at 238 miles per hour shows that bigger may not always be better. In that test, the drone did not shatter on impact, but tore open an M-20's aircraft wing.

A lead researcher says, as the number of hobby drones in the air dramatically increases, so does the risk of a catastrophic event and he notes, near misses have been happening more frequently.

ROMANS: All right, if science doesn't get you interested in climate change, maybe beer will. A new study published in the journal, "Nature Plants," finds climate change will cause a global beer shortage. That's because it's main ingredient, barley, is sensitive to extreme drought and heat, which would lead to substantial decreases in barley crop yields.

A price surge would also be on tap, the study finds the price of beer around the world would double on average.

BRIGGS: Speaking of, the Milwaukee Brewers now just two wins away from their first World Series appearance in 36 years after a 4-0 victory over the Dodgers in game three of the NLCS.

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Light-hitting Orlando Arcia delivering the big blow for the brew crew with two run homer in the seventh. Arcia's third home run in the post season. Things did a little tense though in the ninth when reliever Jeremy Jeffress loaded the bases with one out. They struck out the next two.

Game four tonight in LA - game three of the ACLS scheduled for 5:09 eastern time when the Astros and Redsox's meet tied at one game a piece.

ROMANS: All right, time for an office pool, everyone. Dean, you got $5? Tonight's MEGAMILLIONS drawing is now $654 million. If you choose the lump sum, $372 million - I could, that would be all right.

This is now the second largest in the games history and by the drawing tonight, it could eclipse the record of $656 million set in 2012.

BRIGGS: Don't kid yourself. You're not getting involved in the office pool, I will lead that. You are not invited.

You're not coming on my boat either.

ROMANS: I'm going to raise my percentage of the 401(K), one percent.

BRIGGS: You're not coming on my boat, my friend.

ROMANS: All right. Right now Secretary of State, Mike Pompeo is in Riyadh meeting with the Saudi King and the Crown Prince. The presumed death of a journalist in the consulate in Turkey rattling

the relationship, the explanations from Riyadh shifting. We are live in Saudi Arabia.

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