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EARLY START

Previewing President's Address Tonight; Trump Inaugural Committee Subpoenaed; Deal to Keep U.S. Troops in South Korea; Obesity Causes Cancer Spike n Younger Patients; Actor Liam Neeson Reveals Racist Revenge Story; Patriots to Celebrate with Duck Boat Parade Today. Aired 5-5:30a ET

Aired February 5, 2019 - 05:00   ET

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


[05:00:00] BORIS SANCHEZ, CNN ANCHOR: We're still in the air.

CHRISTINE ROMANS, CNN ANCHOR: We are.

SANCHEZ: EARLY START continues right now.

(MUSIC)

SANCHEZ: The president's State of the Union Address just hours away. Aides say he will appeal to compromise. But how about would Democrats respond with a new speaker of the House looking over his shoulder?

ROMANS: A subpoena related to the president's inaugural committee, prosecutors are probing possible conspiracy and illegal donations from abroad.

SANCHEZ: And a deal is reached to keep troops in South Korea. It's a major commitment ahead of the president's next summit with Kim Jong- un.

ROMANS: And actor Liam Neeson says he once walked the streets waiting to kill someone because of their race. The big reveal and why he is telling this now.

Good morning, everyone. Welcome to EARLY START. I'm Christine Romans.

SANCHEZ: And I'm Boris Sanchez, in for Dave Briggs.

A pleasure to be with you, Christine.

ROMANS: Nice to have you.

SANCHEZ: It is Tuesday, February 5th, 5:00 a.m. on the East Coast.

A big story, of course, tonight, the president delivering his second official State of the Union Address. It will be his first in this new era of divided government. Democratic House Speaker Nancy Pelosi will sit over his shoulder after outmaneuvering him during the government shutdown.

The speech comes at a critical time in his presidency, with not only a divided Congress, but another shutdown looming over the border wall issue, the Mueller investigation, the investigation in the Southern District of New York. It is a long list. That, of course, the focus this week in Congress and elsewhere.

Administration officials have been previewing the president's address. The theme tonight: choosing greatness.

(BEGIN VIDEO CLIP)

KELLYANNE CONWAY, WHITE HOUSE COUNSELOR: This president is going to call for an end to the politics of resistance, retribution. He is calling for Cooperation and he's calling for comity, C-O-M-I-T-Y, and also compromise.

(END VIDEO CLIP)

ROMANS: Vice President Mike Pence and Acting Chief of Staff Mick Mulvaney among the officials briefing surrogates at the White House last night, they say the speech will be about 50 percent foreign policy, he will touch on infrastructure and lowering drug costs, two areas where there might be some common ground with Democrats. Of course, illegal immigration and the border wall still big issues and it may lead to another lapse of government funding late next week.

On that topic, Republican Senator Lindsey Graham had this message for his colleagues.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: To every Republican, if you don't stand behind this president, we're not going to stand behind you when it comes to the wall. This is the defining moment of his presidency. It is not just about a wall. It is about him being treated different than every other president.

(END VIDEO CLIP)

SANCHEZ: The White House says the president does not declare a national emergency in the latest State of the Union draft. Several Republican senators say they are deeply skeptical mainly out of the worry that a Democratic president might then use the same excuse to fund their priorities.

The president's State of the Union guest list highlights some of his key themes. It includes family members of a couple murdered by an undocumented immigrant, survivors of the Tree of Life massacre, a prison reform advocate, a man who benefited from tax cuts and a kid named Trump. Sixth Grader Joshua Trump is not related to the president, but the White House says he has been bullied at school because of his last name.

ROMANS: All right. Stacey Abrams, a rising star in the Democratic Party, will deliver the response to the president's State of the Union. Abrams fell short of the 2018 Georgia governor's race, but energized liberal voters in the South. She will be the first African- American woman to give the Democratic response. As for how she will prepare, Abrams says that she will hydrate first.

That is a nod to Marco Rubio who awkwardly remember took sips of water during his response. At least four House Democrats will not be attending tonight's State of the Union. Fourteen Democrats skipped the president's address last year.

SANCHEZ: And happening in the background of the speech certainly not to be ignored. President Trump's inaugural committee was subpoenaed by federal prosecutors in New York. The move escalates a wide ranging inquiry into how a record $107 million was raised and spent. A copy of the subpoena reviewed by CNN demands documents related to donors, vendors and finances.

The investigation covers a long list of potential crimes. They include conspiracy against the U.S., illegal contributions from foreign nations, and contributions in the name of another person, also known as straw donors.

ROMANS: "The Wall Street Journal" reported last year, the probe is looking at whether some donors gave money in exchange for access. A spokesman for the inaugural committee says the subpoena is being reviewed and that it is their intention to cooperate. It's worth noting, much of the committee's fund raising was headed by former Trump campaign official Rick Gates.

He pleaded guilty to a variety of felonies. He is now cooperating with special counsel Robert Mueller's investigation.

SANCHEZ: The Trump administration facing another possibly messy confirmation ahead of the president nominating Acting Interior Secretary David Bernhardt to replace Ryan Zinke who resigned late last year amid controversy.

[05:05:03] Bernhardt is a former energy lobbyist. Now, he is tapped to lead a department with the dual and what many say is contradictory missions of developing and protecting America's natural resources including oil and gas.

"The Washington Post" has reported Bernhardt lobbied for many of the businesses that he would now regulate. Last year, he said he was committed to avoiding conflicts of interest.

ROMANS: Dueling narratives over that racist photo that appeared on Virginia Governor Ralph Northam's medical school yearbook page. A member of the 1984 staff tells CNN the photos were chosen by each student and submitted in a sealed envelope with the student's name on it. They were not chosen at random. Governor Northam claims he never saw the photo in question before he was confronted with it last week. He is resisting calls to resign and is said to be weighing his options.

And now, the lieutenant governor who would take his place facing a controversy of his own.

We get more this morning from Ryan Nobles.

(BEGIN VIDEOTAPE)

RYAN NOBLES, CNN WASHINGTON CORRESPONDENT: Boris and Christine, good morning from Richmond, Virginia, where a lot has happened here, but not much has changed.

The Governor Ralph Northam still in office, his Lieutenant Governor Justin Fairfax still in that same position, but there is a lot of uncertainty about the future of both of these men. We know Ralph Northam gathered his cabinet on Monday for a very tenuous and what was described as a solemn meeting where he essentially begged his cabinet to stick with him, to give him more time to prove that he is not the person in this racist photo that has gotten so much attention.

In fact, Northam saying that he wants to stay in office in an effort to clear his good name because he did not want to resign and be thought of as a racist for life. Now, all of this drama surrounding about Northam comes at the same time that new report has emerged about the Lieutenant Governor Justin Fairfax who would take over were Northam were to resign. The accusation comes from a woman who accuses the lieutenant governor of sexual assault while they were both at the Democratic National Convention in 2004.

Fairfax however is not backing down. He vehemently denies this ever took place and he called and impromptu press conference yesterday to clear his name. Take a listen.

LT. GOV. JUSTIN FAIRFAX (D), VIRGINIA: You do now have something that was 15 years ago and yet you don't have a shred of corroboration, shred of evidence. You -- it was first posed a year ago. It went to the "Washington Post" and "Washington Post" made the decision not to run the story because it is false, it's uncorroborated. The reason it's uncorroborated is because false. You just go away until you find another opportunity to get back in the media.

NOBLES: Now, there is it no doubt that the new allegations against Fairfax complicate the situation here in Richmond. There is a lot of uncertainty about what the next 24, 48 hour or even the next week could bring.

For now, we know Ralph Northam has no plans to resign and that Justin Fairfax is not going to back down as these accusations are leveled against him -- Boris and Christine.

(END VIDEOTAPE)

ROMANS: All right, Ryan. Thank you for that.

The cost of a drug to treat a rare disease sky rockets to $375,000. And now, Senator Bernie Sanders demands to know why. He wrote a letter to the CEO of Catalyst Pharmaceuticals about the drug Firdapse. It is used to treat a rare neuromuscular disease. Sanders says the price hike corporate greed at its worse, it is an immoral exploitation of patients.

Patients were previously able to get it free of charge through the Food and Drug Administration, but in November, Catalyst acquired the North American license for the drug and jacked up the price.

SANCHEZ: RBG is back.

Supreme Court Justice Ruth Bader Ginsburg spotted making her first public appearance Monday since undergoing cancer surgery in December. Ginsburg attended a performance of "Notorious RBG in Song" at the National Museum of Women and the Arts. Her daughter-in-law, soprano Patrice Michaels released an album of songs celebrating Ginsburg's life, and Ginsburg's son James produced that album.

The court has not said if she's actually going to attend tonight's State of the Union, but it is not really expected given that Ginsburg has missed both President Trump's previous addresses to Congress.

ROMANS: President Trump met with Federal Reserve Chairman Jerome Powell Monday night for an informal tete-a-tete to talk about the health of the economy over dinner. Last week, the Fed kept interest rates unchanged. The president, of course, has repeatedly criticized the Fed and the Fed's rate changes and the Fed Chief Jerome Powell.

He called him loco, I think. Crazy. Powell denounced the idea that the fed was caving to political pressure saying that situation calls for patience.

The main event tonight, the State of the Union Address where the president is likely to take credit for a strong economy. Here's what he could highlight. The job market is strong, unemployment lowest in a generation, African-American unemployment at a record low. The president brings this up almost every day.

Last year, the economy created 2.6 million new jobs and the stock market is back above 25,000. Now, the president says it is the best in the history of the world, but post-World War II in the Clinton year booms were bigger.

[05:10:03] Still, the economy is humming. The risks here: trade war with China, slowing global growth, a Fed that potentially misfires on rate increases and not enough skilled workers in the U.S. to feed the jobs boom.

Wall Street is also bracing for its first profit decline in three years. According to estimates from FactSet, profits for S&P 500 companies are expected to decline nearly 1 percent during the first quarter.

SANCHEZ: A lot about the economy in the State of the Union.

ROMANS: We'll see.

SANCHEZ: Something you likely won't hear is an admission from the Pentagon about ISIS. The terror group likely to retake territory after the U.S. pulls out of Syria. So what happens to hundreds of foreign ISIS fighters that are detained overseas?

(COMMERCIAL BREAK) ROMANS: The U.S. and South Korea reaching a preliminary deal to keep 30,000 American troops in South Korea, the move easing fears President Trump could try to withdraw U.S. troops during his upcoming summit with North Korean leader Kim Jong-un.

[05:15:01] Under the agreement, South Korea would pay more, nearly $1 billion per year, a $200 million increase. This is not a long term fix, it is only a one year agreement, there is an option of a within year extension.

SANCHEZ: The U.S. is calling on other countries to repatriate and prosecute ISIS fighters detained in Syria as the U.S. prepares to withdraw. Last week, CNN reported that number of foreign fighters held in Syria topped 800 for the first time. Many countries are reluctant to take fighters back. It can be difficult to prosecute suspected ISIS members based on evidence from the battle field.

The State Department says despite liberating ISIS-held territory in Iraq and Syria, ISIS remains a significant terrorist threat. A new report from the Pentagon's inspector general says is will likely retake territory and claim victory after the United States withdraws from Syria.

ROMANS: More European nations now throwing their support behind Juan Guaido as leader of Venezuela. The list now tops 20 in Europe alone, including Britain, France, Spain and Germany. Foreign ministers from 14 countries in North and South America, the so-called Lima Group holding urged loyalty to Guaido.

Several countries giving humanitarian aid, with big donations, Canada and Germany. Questions remain, though, what will happen to that aid, whether it will be distributed to those in need, or if troops loyal to Nicolas Maduro will hoard it for themselves.

Just an amazing situation down there.

SANCHEZ: Yes. Got to say, it didn't feel like the Super Bowl was two days ago. It was so boring, it feels like it didn't happen.

Before they board the duck boats for today's parade in Boston though, Tom Brady and Super Bowl MVP Julian Edelman got the star treatment at Disneyworld.

Andy Scholes has the "Bleacher Report", next.

(COMMERCIAL BREAK)

[05:21:08] SANCHEZ: Some alarming research shows obesity related cancers are rising fast among millennials. The American Cancer Society found a trend among adults 24 to 49, which covers millennials and slightly older adults. Six cancers associated with obesity showed startling increases among younger adults and those usually show up later in life. The risk is about double the rate baby boomers had at the same age.

On a global scale, the World Health Organization says obesity has reached epidemic proportions, it is estimated that more than a billion adults are overweight.

ROMANS: This shocking revelation from Liam Neeson who says he once contemplated racist revenge and is expressing regret for it today. He says this happened years ago. He didn't say when or where, but he took to the streets with a heavy stick after learning that loved one had been raped.

(BEGIN AUDIO CLIP)

LIAM NEESON, ACTOR: I asked, did she know who it was? No. What color were they? She said it was a black person.

I've gone up and down areas with a cosh hoping I'd be approached by somebody. I'm ashamed to say that. And I did it for maybe a week hoping some black bastard would come out of a pub and have a go at me about something, you know? So that I could kill him.

(END AUDIO CLIP)

ROMANS: Neeson says when he looks back now, he is ashamed of his horrible behavior. The 66-year-old actor says growing up around violence in Northern Ireland taught him that revenge ultimately does not work. Neeson gave the interview to promote his new film "Cold Pursuit" in which he plays a father bent on revenge after death of his son.

SANCHEZ: A familiar scene in Boston today, Patriots celebrating with a duck boat parade.

ROMANS: Andy Scholes has more in this morning's "Bleacher Report".

Hey, Andy.

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: You know, good morning, guys.

I'm going to be looking for that kid who keeps holding up that poster that he updates bragging about all the championships the city of Boston has won over the last decade. Spoiled fans there in Boston, including John Berman.

But certainly a fun day there and Tom Brady and Julian Edelman meanwhile getting their own parade yesterday at Disneyworld. You see them there with Mickey Mouse. The two making the most of their trip.

We asked Julian Edelman what was his favorite part of the day.

(BEGIN VIDEO CLIP)

JULIAN EDELMAN, SUPER BOWL MVP: I think battling Brady over in the lightsaber war, we did a little lightsaber thing where I had to show him who's boss. That was pretty fun.

(END VIDEO CLIP)

SCHOLES: The Patriots parade starts at 11:00 Eastern later on this morning in downtown Boston. Sunday's Super Bowl not the most exciting game and the ratings

definitely reflected it. CBS announcing that about 98 million people tuned in Sunday, that is the lowest ratings for the game in more than a decade, and a 5 percent drop from last year. One of the reasons why the ratings may have been so low, only about 26 percent of the New Orleans market tuned in for the game. That is the lowest numb for the city since they began tracking it back in 1998.

Many Saints fans in the city boycotting the Super Bowl because of the no-call that cost them a trip to the game. And this was the cover of the paper of "The New Orleans Times-Picayune" yesterday: Super Bowl? What Super Bowl?

Hey, now that football season is over, that means that it is almost time for on baseball. The Red Sox equipment truck leaving on the 1,500-mile trip down to Florida for spring training yesterday. And on the truck, you had more than 1,000 bats, 20,000 baseballs and 20 cases of bubble gum. Pitchers and catchers report next week.

In the meantime, guys, still waiting for superstars Bryce Harper and Manny Machado to sign. No word yet on when that's going to happen. Spring training may very well get under way and those two guys still looking for a job.

SANCHEZ: I'm in the same boat as those Saint fans. From the half time show to the commercials. I'm going to boo John Berman when I see him.

SCHOLES: You see him in the hallway. Boo.

ROMANS: Boo.

SANCHEZ: Thank you so much, Andy.

ROMANS: Will the president offer compromise in tonight's State of the Union? Allies say yes, but a new reality awaits him in the chamber.

SANCHEZ: And a subpoena for the Trump inaugural committee, prosecutors want documents on donors and more as they probe possible conspiracy and illegal foreign donations.

(COMMERCIAL BREAK)

ROMANS: The president's State of the Union Address just hours away. Aides say that he will appeal for compromise. How about Democrats respond with the new speaker of the House looking over his shoulder?

SANCHEZ: Plus, a subpoena related to the president's inaugural committee, prosecutors are probing possible conspiracy and illegal donations from abroad.

ROMANS: A deal reached to keep tens of thousands of U.S. troops --