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EARLY START

Government Shut Down Effecting Many People in Many Ways; How Far Will Trump Go On Border Security; Lindsay Graham Pitched Trump On A Breakthrough For Wall Funding and Dreamers; Trump Is Blaming Democrats For The Deaths Of Two Migrant Children At The Mexico Border. Aired 4:30-5a ET

Aired December 31, 2018 - 04:30   ET

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


[04:35:00]

Congress and the administration to do their job. We had an individual let us know that recently his wife died. He is unable at this time because of this shutdown to pay for her headstone.

(END VIDEOTAPE)

MARQUARDT: Some banks like Chase and Wells Fargo are saying they're willing to work with federal employees who's accounts are in good standing. And as questions linger about how far President Trump might be willing to bend on border security, his outgoing Chief of Staff is publically clarifying somewhat one very critical point. For more on that we have Sarah Westwood at the White House.

SARAH WESTWOOD, CNN CORRESPONDENT: Well Alison and Alex, President Trump is holding out for funding for his promised border wall. The partial government shutdown drags into its second week. Now, the president's allies have tried to muddy the waters about how much funding the president wants for a wall versus border security. It's also not clear at this point what the president considers and actual wall. Outgoing White House Chief of Staff, John Kelly, said that this administration actually abandoned the idea of a concrete wall along the southern border early in Trump's presidency. He told The Los Angeles Times, "to be honest, it's not a wall. The president still says wall. Often times, frankly, he'll say barrier or fencing. Now he's tended toward steel slats, but we left a solid concrete wall early on in the administration."

Senator Lindsey Graham came to the White House on Sunday for a two- hour luncheon. Said he pitched the president on what he described as a potential breakthrough should it gain traction, and that's a deal that would trade $5 billion in wall funding for temporary protections for the so-called dreamers - the young, undocumented immigrants protected by DACA.

(BEGIN VIDEOCLIP)

GRAHAM: The president didn't commit, but I think he's very open- minded. I know there's some Democrats out there who would be willing to provide money for wall border security if we could deal with the DACA population and TPS people, and hopefully we can get some serious discussions started maybe as soon as next week.

(END VIDEOCLIP)

WESTWOOD: But keep in mind that Mick Mulvaney, the incoming acting Chief of Staff/Budget Director has already signaled that the president is willing to back down off that $5 billion number. In fact, Vice President, Mike Pence, last week offered something in the neighborhood of $2.5 billion, half of that, and Democrats rejected it. Now, keep in mind that Democratic congressional leaders haven't been invited back to the White House for further negotiations, so talks do still appear to be at a standstill. Alison and Alex -

KOSIK: OK, Sarah Westwood, thanks for your reporting. Adding insult to injury, President Trump has issued and executive order that freezes federal workers pay in 2019. The move follows through on a proposal he announced earlier this year. It nixes a 2.1 percent across the board pay raise that was set to take affect in January. It also cancels a yearly adjusted of federal employees' pay based on their - based on their region. The president said back in August that the federal budget could not support the pay increase.

MARQUARDT: President Trump is blaming Democrats for the deaths of two migrant children at the Mexico border, and he's facing intense criticism for it. The president claims the Democrats and their, quote, "pathetic immigration policies allowed people to think that they could enter the U.S. illegally." He insists they wouldn't even try to come if there was a wall there. Now listen to Kellyanne Conway making that case on CNN State of the Union.

(BEGIN VIDEOTAPE)

KELLYANNE CONWAY, COUNSELOR TO THE PRESIDENT: I don't like - I don't like some of the Democrats using these deaths as political pawns -

DANA BASH, CNN STATE OF THE UNION HOST: But isn't that exactly what the president just did?

CONWAY: No, the president is not doing that. The president does not want these children to come on the perilous journey to begin with. They are paying - now some of them are paying the ultimate price, but many of them, all of them are paying these coyotes who don't give a wit about human life.

BASH: But this is not a new policy.

CONWAY: (inaudible) and the Congress has failed to close loopholes that made people believe they should come here as a family unit.

(END VIDEOTAPE)

KOSIK: Meantime, all the political posturing is doing nothing to solve a heartbreaking crisis at the border. New video of shelter staff members pushing and shoving migrant children now under review for possible criminal charges. Two employees have been fired with other discipline. Nick Valencia has more. NICK VALENCIA, CNN CORRESPONDENT: Alison and Alex, this is a story that was first reported by the Arizona Republic. They obtained this surveillance video by filing and open records request with the Arizona Department of Health Services. And before you see it, we want to warn some of our viewers may find this video disturbing. What it shows are three incidents involving staffers at the Hacienda Del Sol shelter in Youngtown, Arizona. It's a facility that was run by Southwest Key. This is an incident that happened or incidents that happened in mid September and they were reported by Southwest Key to local law enforcement as well as federal officials. The Maricopa County Sheriffs Office did investigate and at the time decided to not bring criminal charges, but that has changed. Here's a statement that we got over the weekend which says, quote, "based upon the evidence gathered during this thorough investigation, MCSO executive command has made the decision to submit the case to the Maricopa Country Attorneys Office for its review and determination of criminal charges.

[04:40:00]

VALENCIA: The case will be submitted on Monday and further questions about this matter should be directed to the county attorney. We should mentioned that the Hacienda Del Sol Shelter closed in October. Southwest Key spokesman released a statement back then saying he welcomed the decision by the Office of Refugee Resettlement, but they did not go into the details, and after seeing this video, we could perhaps tell why. We should mention that this is another dark stain and ugly thread in what is already a very sad story involving migrants in America. Alex, Alison -

MARQUARDT: All right, very difficult video to watch. Our thanks to Nick Valencia for that report. Now, the Affordable Care Act or Obamacare will remain in effect while a ruling that found it unconstitutional is appealed. Texas Federal District Judge, Reed O'Connor, found Obamacare unconstitutional because Congress had eliminated the individual mandate penalty. Since the individual mandate was upheld as a tax, the judge has essentially ruled no tax, no law. The decision now jeopardizes health coverage for millions of Americans on the Obama exchanges and Medicaid expansion. It also threatens to eliminate popular protections like the gaurnteed covered for those with preexisting conditions.

KOSIK: OK, we've got a full day of trading ahead on Wall Street. Looking at Futures, they are up as investors are going to try to close out the year on a high note. What's the view among investors? Well, 2018, it was a year of peak earnings and growth and 2019 is expected to be more tempered. You look at seven of the past nine years, the S&P 500 has boasted double-digit returns. Well guess what? Investors are now facing their worst stock market returns in a decade. The stock market is what's called leading indicator. Even though the economy today is strong, banks are healthy, job growth is brisk, the market is reflecting what's expected for next year, and the stock market is telling us next year will be good but not great.

All right, so let's talk about some financial resolutions for the new year, shall we? According to Fidelity Investments, for the tenth year in a row the three most popular financial resolutions for 2019 are saving more money, a meeting of $200 per month, followed by paying down debt and spending less money. Other resolutions from Charles Schwab include create a budget, manage your debt, optimize your portfolio, and prepare for the unexpected, of course, prepare your estate. Alex, what are your resolutions financially?

MARQUARDT: I was going to ask you the same thing. Mine are super boring. None on that list. It's all the usual stuff, you know, be healthier, eat healthier, go to the gym more -

KOSIK: OK.

MARQUARDT: - sleep more.

KOSIK: Wait, where's the finance part of that?

MARQUARDT: I need to be responsible. I need to be more mature in my savings. Well, that's on the list. Save more.

KOSIK: All right, well at least you're admitting it here in front of everybody.

MARQUARDT: I'm glad that $200 is the -

KOSIK: The minimum.

MARQUARDT: - goal. I think I'll strive for that. All right, well coming up next an intern mauled by a lion at a North Carolina zoo. How it happened and what the victim's family is saying.

(COMMERCIAL BREAK)

[04:45:00]

KOSIK: We are ringing in 2019 in less than 20 hours here on the east coast, and as always, it's going to be a massive celebration in New York's Time Square. For the millions of people who will be there to see the big ball drop in person, security's going to be super tight. Let's get more now from CNN's Miguel Marquez.

MIGUEL MARQUEZ, CNN CORRESPONDENT: Alison, Alex, it is a party for two million people, and safety is the number one priority for the NYPD. The entire area around Times Square will be blocked off. There will be entrances for the public to get in. There will be magnetometers at all of those entrances. No alcohol will be allowed, so backpacks, coolers, large packages, lawn chairs, or umbrellas. Doesn't sound like much of a party, does it? The pens that they put the public in will start opening up at 11 a.m. It's a little like Hotel California. You can check in anytime you want, but if you leave, you can't check back in because you have to go back through the line again basically. So you're going to have to have your restroom strategy worked out if you actually go.

As for NYPD's part, there's going to be hundreds of officers and agents from over 50 agencies local, state, and federal, 1,200 plus camera, officers embedded in hotels around the are, bomb squad will be on hand, bomb-sniffing dogs, hundreds of vehicle blockers to block off the entire area, and one new thing this year, drones.

(BEGIN VIDEOCLIP)

JOHN MILLER, NYPD DEPUTY COMMISSIONER OF INTELLIGENCE AND COUNTERTERRORISM: We'll be deploying NYPD drones for over watch. We haven't done that before, but that's going to give us a visual aid and the flexibility of being able to move a camera to a certain spot with great rapidity through a tremendous crowd.

(END VIDEOCLIP)

MARQUEZ: They'll even have counter drone technology out there. So if you want to bring your drone to Times Square, you might be into trouble because they'll probably be able to take it down somehow, although they're being very, very tight-lipped on the details there. Alex, Alison -

MARQUARDT: Very cagey. Thanks, Miguel Marquez. So for those of you heading to Times Square and elsewhere to ring in the new year, will the weather cooperate. Let's get to that with meteorologist Pedram Javaheri.

(WEATHER)

KOSIK: OK Pedram, thanks very much. We'll see if the rain keeps some of these revelers away.

MARQUARDT: Hopefully other people will have better luck than New York. We're going to get drenched here.

KOSIK: I know we are.

MARQUARDT: You are.

KOSIK: I am. Fios customers can get all the Disney they want as standoff with Verizon ends with a deal to avoid a blackout. CNN Business is next. I was ready to switch up -

(COMMERCIAL BREAK)

[04:50:00]

KOSIK: We are ringing in 2019 in less than 20 hours here on the east coast, and as always, it's going to be a massive celebration in New York's Time Square. For the millions of people who will be there to see the big ball drop in person, security's going to be super tight. Let's get more now from CNN's Miguel Marquez.

MARQUEZ: Alison, Alex, it is a party for two million people, and safety is the number one priority for the NYPD. The entire area around Times Square will be blocked off. There will be entrances for the public to get in. There will be magnetometers at all of those entrances. No alcohol will be allowed, so backpacks, coolers, large packages, lawn chairs, or umbrellas. Doesn't sound like much of a party, does it? The pens that they put the public in will start opening up at 11 a.m. It's a little like Hotel California. You can check in anytime you want, but if you leave, you can't check back in because you have to go back through the line again basically. So you're going to have to have your restroom strategy worked out if you actually go.

As for NYPD's part, there's going to be hundreds of officers and agents from over 50 agencies local, state, and federal, 1,200 plus camera, officers embedded in hotels around the are, bomb squad will be on hand, bomb-sniffing dogs, hundreds of vehicle blockers to block off the entire area, and one new thing this year, drones.

(BEGIN VIDEOCLIP)

JOHN MILLER, NYPD DEPUTY COMMISSIONER OF INTELLIGENCE AND COUNTERTERRORISM: We'll be deploying NYPD drones for over watch. We haven't done that before, but that's going to give us a visual aid and the flexibility of being able to move a camera to a certain spot with great rapidity through a tremendous crowd.

(END VIDEOCLIP)

MARQUEZ: They'll even have counter drone technology out there. So if you want to bring your drone to Times Square, you might be into trouble because they'll probably be able to take it down somehow, although they're being very, very tight-lipped on the details there. Alex, Alison -

MARQUARDT: Very cagey. Thanks, Miguel Marquez. So for those of you heading to Times Square and elsewhere to ring in the new year, will the weather cooperate. Let's get to that with meteorologist Pedram Javaheri.

(WEATHER)

KOSIK: OK Pedram, thanks very much. We'll see if the rain keeps some of these revelers away.

MARQUARDT: Hopefully other people will have better luck than New York. We're going to get drenched here.

KOSIK: I know we are.

MARQUARDT: You are.

KOSIK: I am. Fios customers can get all the Disney they want as standoff with Verizon ends with a deal to avoid a blackout. CNN Business is next. I was ready to switch up -

(COMMERCIAL BREAK)

MARQUARDT: President Trump is claiming that trade talks between the United States and China are, quote, "moving along very well." After a long phone conversation this weekend with Chinese President Xi Jingping, Mr. Trump tweeted, "big progress is being made." Is that just more rhetoric? To answer that question, we go live to Beijing and bring in CNN's Matt Rivers. So Matt, are there actually signs of progress? MATT RIVERS, CNN CORRESPONDENT: Well, we know that both sides continue to talk, Alex. We know that the Chinese side has confirmed that there will be talks between the U.S. and Chinese delegations at some point during the month in January, but what we don't really know is exactly how close these two sides are to an agreement. The Wall Street Journal reported that the president's tweet there according to sources familiar with the discussions might be overstating how close an agreement is to being reached between the Chinese and the Americans, but if that sounds familiar, well, we've been here before. You know, Alex, this has been back and forth and back and forth really for the better part of a year now in terms of how this is going to play out. And so, when you're looking into the new year, we know that both sides are trying to reach an agreement by the end of February to avoid more tariffs going into effect and escalating the trade war even further. Whether and agreement can be reached, it's really anyone's guess at this point. There's just no way to know. If you told me that at the end of February there would be an agreement or that there wouldn't be, either it completely plausible at this point.

[04:55:00]

So despite what the president's tweeting there, maybe there is progress being made, but in terms of officially, nothing's being confirmed by the Chinese and it's really just a case of wait and see how this is all going to play out.

MARQUARDT: All right, highs takes trade drama between Beijing and Washington. Matt Rivers in Beijing, thanks very much.

KOSIK: Tragedy at a North Carolina zoo no Sunday, a lion killed an intern at the Conservators Center in Burlington, North Carolina. Zoo officials say it happened during a routine cleaning of an animal enclosure. They say one of the lions somehow escaped a locked space and entered the public park area. Authorities identified the victim as 22-year-old Alexandra Black. She had interned at the zoo for about two weeks.

(BEGIN VIDEOCLIP)

MINDY STINNER, EXECUTIVE DIRECTOR AND CO-FOUNDER OF THE CONSERVATORS CENTER: This person's passion was the zoological industry. This was not this person's first internship, and this person wanted to spend a lifetime around these animals.

(END VIDEOCLIP)

MARQUARDT: The male lion was then euthanized. It's not clear how he actually escaped. Officials say the Conservators Center will be closed until further notice, and in a statement overnight, Alexandra Black's family says in part, quote, "she was a beautiful young woman who had just started her career. There was a terrible accident and we are mourning, but she died following her passion."

KOSIK: An off-duty policy office in Central Texas is credited with foiling a potential holiday massacre. Police say the officer responded to a man wearing tactical style clothing and a surgical face shield Sunday morning in the city of Seguin. 33-year-old Tony Albert was carrying a loaded firearm and extra ammo, and authorities say he was en route to an unidentified church to fulfill what he called a prophecy. Albert has been arrested and booked on drugs and weapons charges - weapons possessions charges. Police are grateful to the concerned citizen who called them and said if Albert was not stopped the results could have been tragic.

MARQUARDT: Now turning overseas, an American who just came back from providing medical help in the Democratic Republic of Congo is now being monitored for possible exposure to the Ebola virus. The evaluation is taking place back home at a Nebraska medical center in Omaha. And infectious diseases specialist at the center says that the unidentified person may have been exposed but is not ill or contagious. That's very important. Now, the Democratic Republic of Congo is going through one of the deadliest Ebola outbreaks in its history. It's claimed already more than 300 lives.

Now switching gears, it's going from bad to worse to much worse for the disgraced comedian Louis C.K. New leaked audio of a standup routine shows Louis C.K. mocking Parkland shooting survivors and their advocacy for gun laws.

(BEGIN VIDEOCLIP)

LOUIS C.K., COMEDIAN: They testify in front of Congress these kids? Like what the (EXPLETIVE)? What are you doing? You're young. You should be crazy. You should be unhinged, not in a suit saying, "I'm here to tell (EXPLETIVE)." Interesting because you went to a high school where kids got shot. Why does that mean I have to listen to you? How does that make you interesting? You didn't get shot. You pushed some fat kid in the way, and now I've got to listen to you talking?

(END VIDEOCLIP)

MARQUARDT: Those jokes landing pretty well it sounds like. In a longer clip that surfaced on Twitter, the comedian also rants about people with disabilities. Last year, Louis C.K. pledged to, quote, "step back and take a long time to listen," after admitting to inappropriate sexual conduct.

KOSIK: Closing time for more Sears and Kmart stores. Sears has announced it will close more than 80 Sears and Kmart stores, one of them at the Mall of America site in Minnesota. It had been the only full-scale Sears in the state that wasn't already earmarked to shutdown. Soon the brand will be all but erased from the state where its co-founder first entered the retail businesses in 1886. Sears also receiving a last minute bid from its chairman to keep much of the rest of the business alive. Eddie Lampert did cut the price he's willing to pay by $200 million to $4.4 billion. The final decision on Lampert's bid will be made by the judge overseeing Sears bankruptcy proceedings. Sears Holdings has lost $12 billion over the past eight years as sales have plunged 60 percent.

Verizon and Disney reaching an agreement to resolve a high-stakes fight over programming fees. The dispute threatened to knock ESPN, ABC, and other Disney owned channels off the Fios TV network. The two companies had until 5 p.m. Eastern today to come to terms. No details had been released. Few disputes like this are becoming quite common as television viewership declines. Media companies are demanding more for their content to make up for lost revenue. That has cable and Dish providers bucking at raising rates for fear of losing even more customers. These battles are typically resolved before stations go dark. There are some notable exceptions, though, including last year's CBS-Dish Network fight that blacked out CBS and NFL games over Thanksgiving, so in that case timing was everything and that was really the leverage.

MARQUARDT: At the worst possible time.

KOSIK: Absolutely.

MARQUARDT: All right