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EARLY START

Trump Lashes Out; Manhattan Terror Suspect in Court; Astros Take World Series with 5-1 Game 7 Win; Russian-Backed Ads on Social Media Revealed; Obama Pushes For Obamacare. Aired 4:30-5a ET

Aired November 2, 2017 - 04:30   ET

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


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[04:30:37] DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We have to get much less politically correct. We're so politically correct that we're afraid to do anything.

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CHRISTINE ROMANS, CNN ANCHOR: The president now calling for the death penalty for the suspect in the Manhattan terror attack, and his decision to quickly politicize the attack is drawing an awful lot of attention.

DAVE BRIGGS, CNN ANCHOR: And disturbing details emerging about the suspect. He began planning a year ago. Self-radicalized in the U.S., and says he feels good about what he's done.

Welcome back to EARLY START, everybody. I'm Dave Briggs.

ROMANS: And I'm Christine Romans. It is 31 minutes past the hour.

We begin here with the president. President Trump already taking heavy criticism for politicizing Tuesday terror attack in Manhattan. He may have made things worse with the late night tweet. He said this: NYC terrorist was happy as he asked to hang ISIS flag in his hospital room. He killed eight people, badly injured 12. Should get the death penalty.

Now, legal experts quick to point out, this sort of public could taint any jury pool if the suspect is tried in New York.

BRIGGS: This came hour after Mr. Trump lashed out at our justice system.

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TRUMP: We also have to come up with punishment that's far quicker and far greater than the punishment these animals are getting right now. We need strong justice, much quicker and much stronger than we have right now, because what we have right now is a joke and it's a laughingstock.

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BRIGGS: When asked about that comment, White House Press Secretary Sarah Sanders misrepresented what the president said.

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SARAH HUCKABEE SANDERS, WHITE HOUSE PRESS SECRETARY: He said the process has people calling us a joke and calling us a laughingstock. He's simply pointing out his frustration of how long that this process takes, how costly this process is.

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ROMANS: Earlier, the president went after the system that allowed the terrorist suspect to enter the country in the first place.

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TRUMP: Diversity lottery sounds nice. It's not nice. It's not good. It's not good. It hasn't been good. We've been against it.

So, we want to immediately work with Congress on the diversity lottery program, on terminating it.

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ROMANS: The president targeted New York Senator Charles Schumer, Chuck Schumer, on Twitter, calling the diversity visa lottery a, quote, "Chuck Schumer beauty".

BRIGGS: Schumer was the sponsor of the 1990 legislation which distributes 50,000 visas to countries where there's a low rate of immigration to the U.S. But he also played a lead part in the 2013 gang of eight bill which included removing the diversity lottery program.

ROMANS: Earlier in the day, the president said he would consider sending the terror suspect to Guantanamo Bay. Later, the White House clarified that comment, saying he had signaled support but was not advocating for doing what he said he wanted to do.

Meantime, critics are calling out the Trump administration for proposing sharp cuts to counterterrorism programs in its 2018 budget proposal. It was counterterrorism, officers were on the scene right now. More than $300 million will be cut to a number of grants from the Department of Homeland Security to combat terrorism and violent extremism. Some of that money right here in New York.

All right. Troubling new details about the suspect who pulled off the deadliest terror attack in New York since 9/11. Sayfullo Saipov appearing in federal court charged with proving material support to ISIS, which carries the death penalty by the way. He's already been charged. He's already had a court appearance. He's been charged with at least one of these accounts, does carry the death penalty. Authorities say the Uzbekistan native self-radicalized in America after arriving in 2010.

BRIGGS: The complaint against him says he intended to use a truck to inflict maximum damage against civilians and chose to strike on Halloween because he believed there would be more civilians on the street.

Authorities revealing one of the suspect's cell phones contained about 90 videos, most ISIS-related.

We get more now from CNN's Jason Carroll.

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JASON CARROLL, CNN NATIONAL CORRESPONDENT: Christine, Dave, the suspect appeared in federal court last night. He appeared a wheelchair. He did not enter a plea. That will come later.

He is facing two counts, including providing material support to a terrorist organization. That organization being ISIS. The U.S. attorney has 30 days to indict and at that time, that is when he's expected to enter a plea.

[04:35:04] But he's already talking, giving investigators a great deal of information about his state of mind. And in fact, when he was interviewed in his hospital room, apparently he told investigators that he felt good about what he had done, and at one point asked if an ISIS flag could be hung in his hospital room.

Also, according to the federal complaint, more information revealed as well. He rented that rental truck at 2:06 p.m. on Wednesday, but it was actually on October 22nd that he also rented a truck so he could practice doing turns, we are told.

Also, at one point, he thought about hanging ISIS flags on his rental truck but thought in some way that that might draw attention. And initially, the original plan was for him to go beyond the West Side Highway and continue on to the Brooklyn Bridge, but of course, he was stopped when he crashed into that school bus.

Once again learning more about his connection to ISIS from a letter that was left behind near the truck, which basically was written in Arabic and in English which included ISIS propaganda -- Christine, Dave.

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ROMANS: All right. Jason Carroll, thank you.

All eight victims killed in the New York City terror attack have now been identified. Five from Argentina, one from Belgium, one from New York and one from New Jersey. The five Argentines were in Manhattan celebrating the 30th anniversary of their high school graduation.

Also lost in the attacks, 31-year-old Anne-Laure Decadt of Belgium, a mother of two little boys who was on a trip to New York with her mother and two sisters. BRIGGS: Thirty-two-year-old Darren Drake of New Jersey who served on

the New Milford Board of Education, the school superintendent remembering him as a good man with a huge heart.

The 23-year-old software engineer Nicholas Cleves of New York described by a friend as a kind intelligent and curious. Eight victims injured in the attack remain hospitalized, with one in critical condition.

ROMANS: All right. Thirty-seven minutes past the hour.

President Trump will name the next chair of the Federal Reserve later today, and it could mean the current chief, Janet Yellen, is out of a job. Leading the central bank is one of the most powerful jobs in the world.

And the president teased his pick during his cabinet meeting yesterday, telling reports they'd be impressed.

All right. The current frontrunner, Fed Governor Jerome Powell, that's what the U.S. official tell CNN. The former investment banker has been on the Federal Reserve's board since 2012. He would be the first Fed chair in more than 40 years who is not an economist.

Janet Yellen's term is up in February. Powell has basically supported her agenda. So, there won't be a huge shift in monetary policy if he gets the job, but regulation could be another story. He's less tough on banks and banking regulation than Yellen. Powell largely supports Dodd-Frank, the sweeping reforms put in place after the financial crisis. He has opposed some parts of the law, specifically those preventing banks from making risky bets with taxpayer money.

BRIGGS: New concerns about North Korea's nuclear capabilities one day before President Trump takes off for Asia. CNN has learned North Koreans are already working on advanced version of their existing KN- 20 intercontinental ballistic missile that could potentially reach the United States. All this unfolding less than six months after North Korea's first ICBM launch. The development of an advanced ICBM just one element of Kim Jong-un's nuclear acceleration. U.S. officials say additional upgrades are underway to the regime's nuclear fuel, missile launchers and guidance and targeting systems.

ROMANS: All right. There's plenty of joy this morning in Houston.

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ROMANS: Houston Astros bringing home the first title in franchise history. The highlights and the celebration, next.

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[04:43:08] BRIGGS: Well, the city of Houston sure has something to celebrate in morning. The Astros are champions of baseball, winning Game 7 of the World Series, 5-1 late last night over the Dodgers. Houston jumping out to an early lead, they got two in the first, added three more in the second. And George Springer once again sparking the Astros offense with a double and his record time tying fifth home run in the series to take home MVP honors after struggling mightily before the series.

So fitting Jose Altuve made the final out. When the last out was recorded, the Astros had their first World Series title in franchise history in the year Houston was tested to its core, a World Series trophy was certainly a blissful distraction.

ROMANS: Speaking of blissful, here's our resident Houston Astros fan Andy Scholes in Los Angeles for the deciding seventh game.

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ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Well, Dave and Christine, the champion and beer never tasted so good for the Houston Astros after an amazing world series. The Houston Astros beating the Dodgers in game seven and for the first time in their 55-year history, they are World Series champions, and it couldn't have come at a better time after what the city of Houston went through after Hurricane Harvey.

UNIDENTIFIED MALE: It was huge. You know, I think that was something that we all embraced. We didn't shy away from, from the fact that a lot of people are going through a hard time in that city and to be able to lift their spirits in some way or form and give them a reprieve, things are going hard, to get something to get away from and just cheer and have a good time with their home town team going to a world series and then winning a World Series, I mean, what a special bond that creates between a city and its team.

UNIDENTIFIED MALE: Are you kidding me? It's what you dream about as a kid. We're so fired up. We did it for the city of Houston. So proud to call Houston home.

[04:45:01] It's unbelievable.

UNIDENTIFIED MALE: We wanted to pick up our city going through all this tragedy and really trying to pick up a city, to bring a championship from day one. If it we could do it after a tragedy, even better.

UNIDENTIFIED MALE: This means the world. It's incredible. I'm lost for words.

UNIDENTIFIED MALE: You make me the happiest man in the world. Will you marry me?

UNIDENTIFIED FEMALE: Oh, my God!

SCHOLES: What do you think of Carlos proposing right after you won?

UNIDENTIFIED MALE: We knew he was going to do it. He told us yesterday, hey, papi, I'm going to propose.

UNIDENTIFIED MALE: I knew it was coming. He got a ring. She gets a ring. Everyone's happy.

SCHOLES: You knew it was coming, huh?

UNIDENTIFIED MALE: Oh yes. We knew. We knew we were going to win and he was going to propose. It's going to be a great day.

UNIDENTIFIED MALE: The dang rock looks almost as big as this clubhouse. But it's great. They're great together and I'm happy for both of them.

SCHOLES: In 2014, "Sports Illustrated" predicted the Astros would win the World Series this year and on that cover was George Springer and he had an amazing World Series, tying a record with five home runs. He was your World Series MVP, but, Dave and Christine, that prediction is going to go down as one of the best in sports history.

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BRIGGS: It sure is, in particular because the year before, they lost 111 games. So, this was a franchise that was dreadful when that prediction was made.

ROMANS: Yes, Andy Scholes with the best job in America yesterday, right?

BRIGGS: That smile not worn out anytime soon.

ROMANS: Forty-six minutes past the hour. The scandal over Russian- bought ads has not hurt Facebook sales, hasn't hurt its profits. But CEO Mark Zuckerberg says preventing abuse is going to cost him in the future. Details on CNN "Money Stream", next.

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[04:51:04] ROMANS: Hollywood director and producer Brett Ratner denying accusations of sexual misconduct this morning. In a "Los Angeles Times" story published Wednesday, six women, including actress Olivia Munn accused Ratner of allegations ranging from sexual assault to harassment.

Ratner's attorney says his name will be cleared once the current media frenzy dies down. Ratner is the latest in a series of powerful men in Hollywood and in the media to face sexual misconduct allegations.

And this morning, one the most powerful women is weighing in. I spoke to Martha Stewart and I asked her this.

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ROMANS: Where do you think we are at the moment for women at work? I don't go an hour without someone talking about revelations about powerful people who acted inappropriately?.

MARTHA STEWART, MEDIA ENTREPRENEUR: I think it would have been better to call it out originally instead of 15 to 20 years later.

ROMANS: You didn't have the power, though. STEWART: Well, I had it. I called them out. I remember saying, you

know, stay away from me, creep, you know? But you have to -- you have to feel good about yourself --

ROMANS: Right.

STEWART: -- in order to behave in the way that you deem appropriate.

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ROMANS: For instance, she said she walked away from -- she was a model in her teens and she walked away from an interview, a meeting where they'd asked her to wear a bikini underneath her clothes. She thought that was inappropriate and she just walked away and she was questioning why it took women so long. It's a big topic of conversation among women and men, in all --

BRIGGS: In every walk of life, every field.

ROMANS: In banking, in the mutual fund industry, in any kind of industry of power. Our conversation was about her new line at QVC, about her business, how to stay relevant, her show with Snoop Dogg. So, there's a lot more of that interview rolling out.

BRIGGS: It's interesting show with Snoop Dogg.

ROMANS: Yes. It is, isn't it?

BRIGGS: All right. Police in Thornton, Colorado, looking for a murder on the loose. Police put out this picture of a person they want to speak with about the shooting at Walmart. Authorities are warning the gunman is armed and dangerous. They're calling it a random act.

The suspect shot and killed three people. Two men and a woman all shot inside the store. The female victim pronounced dead after being transported to a local hospital. We'll bring you updates throughout the morning.

ROMANS: All right. Hillary Clinton is standing by her campaign lawyers' decision to pay for opposition research which showed up in a salacious dossier about Donald Trump's ties to Russia. During an appearance on "The Daily Show", Clinton also dismissed any parallels between her campaign's use of opposition research and Russian election interference, which may have given Trump an edge.

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HILLARY CLINTON, FORMER DEMOCRATIC PRESIDENTIAL CANDIDATE: This was research started by a Republican donor during the Republican primary, and then, when Trump got the nomination, for the Republican Party, the people doing it came to my campaign lawyer and said, you know, would you like us to continue it? And he said yes. He's an experienced lawyer. He knows what the law is. He knows what opposition research is.

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ROMANS: Clinton went on to say the bigger problem is the American people didn't know the FBI was investigating the Trump campaign connections to Russia starting back in the summer of 2016.

BRIGGS: Jurors in the corruption trial of New Jersey Senator Bob Menendez set to hear closing arguments from prosecutors this morning. On Wednesday, the judge spent almost three hours delivering final instructions to the panel, imploring them to use common sense when weighing the evidence. The jurors were also ordered to disregard the fact that Menendez and his codefendant chose not to testify.

The Democratic senator is accused of accepting gifts from a wealthy long time friend in exchange for using his influence to lobby on behalf of that friend's business interest.

ROMANS: Michelle Obama taking a subtle swipe at President Trump without referring to him by name. During a conversation with poet Elizabeth Alexander, the former first lady offered young people this simple advice on tweeting.

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MICHELLE OBAMA, FORMER FIRST LADY: This whole "tell it like it is" business, that's nonsense.

[04:55:03] You know, you don't just say what's on your mind. You don't tweet every thought.

I'm not talking about anybody in particular. I'm talking about us all.

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ROMANS: Mrs. Obama went on to say, most initial thoughts are not worthy of the light of day.

The current administration won't do the job, so former President Barack Obama is making the case for his namesake health care law. The 44th president rolling out his video on Twitter and Facebook touting the benefits of the Affordable Care Act as open enrollment gets under way.

It is the law of the land, folks. You -- it is the law that you have to be insured. You have to get insurance.

The Trump administration has been down playing it slashing advising for enrollment by 90 percent and reducing support for outreach and assistance.

President Trump marking open enrollment with a tweet to promote repealing the law's individual mandate, which requires to have coverage of pay to play.

BRIGGS: Presumably that won't be part of the tax cut legislation we see unveiled today. ROMANS: Yes, I don't think so.

BRIGGS: Obamacare, yes, I don't think so.

OK. Warmer temperatures in store for the Northeast to finish off the work week.

Let's get to meteorologist Allison Chinchar with a look at the forecast.

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ALLISON CHINCHAR, AMS METEOROLOGIST: Dave and Christine, many folks are going to have to go from sweaters to shorts in cities in the Northeast, including New York, going from 59 to 70 for the high temperature today. Washington, D.C. 64 yesterday, to 76 today.

But it will be short-lived. Once that cold front is able to push through, a lot of that colder air is going to push down. It's already in places of the Midwest. Now, it's going to start to slide into areas of the northeast.

So, enjoy the few warm days while you have them. Cleveland for example, 10 degrees above average but back to the mid 50s as we approach the weekend. New York, for example, 70 both today and tomorrow but back down to 57 by the time we get into the weekend.

But heat is going to stay in places like Texas, for example. Take a look at this. Dallas normally would be 73 degrees. We're going to be 20 degrees above average with that high temperature in the 90's. Places like Waco also going to be in the 90s and their heat is likely to go stick around for at least a week.

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ROMANS: All right. Allison, thanks for that.

That's your weather, let's talk about money now, CNN "Money Stream".

Global stock markets at this hour mixed. Wall Street closed mostly higher after the Federal Reserve kept interest rates unchanged. That was expected but Fed officials hinted at a likely rate hike in December. The Fed has raised interest rates two times so far this year. Interest, of course, affects borrowing costs for credit cards, auto loans, mortgages.

Fed leaders also noted the economy strength, particularly the labor market. That's despite recent job losses due to the hurricanes. The next big job market report comes out tomorrow. The October jobs report.

Papa John's CEO blames the poor leadership of NFL commissioner Roger Goodell. He says Goodell should have nipped the protests in the bud a year and a half ago.

You're surprised to see this -- BRIGGS: This got blasted across social media all day and all night.

Whether you agree with the stance or not, adding that stance to the conversation can't help their sales now.

ROMANS: Interesting. So interesting. The crisis over Russia-bought ads has not slowed down Facebook. Sales of Facebook, Dave, topped $10 billion last quarter. Think about that quarter --

BRIGGS: A quarter.

ROMANS: Ten billion dollars, that's up near 50 percent from last year, fuelled mainly by advertising but CEO Mark Zuckerberg said future profits will take a hit. They plan to invest heavily to prevent abuse on the site.

Facebook has been harshly criticized for allowing misinformation to run rampant in 2016. Executives from Facebook as well as Google and Twitter are on Capitol Hill this week getting grilled about how they just sat there twiddling their thumbs during Russian meddling during the 2016 election.

You know, these companies say they're going to do better. Facebook saying we're making a lot of money but we're going to have to spend money here. But some of these folks on Capitol Hill are just really furious.

BRIGGS: Well, he says they'll spend between 40 and 60 percent more on security. But as long as there's a willingness to click on this stuff, and to share it, how much can they do really?

ROMANS: I want to see what they -- I mean, you want to be the open flat form. You don't want to be the center. But you want to make sure what people -- what's there is real.

BRIGGS: Next election cycle, this will be crucial.

All right. EARLY START continues right now of how the president says the criminal justice system in this country is a joke.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We have to get much less politically correct. We're so politically correct that we're afraid to do anything.

(END VIDEO CLIP)

ROMANS: The president now calling for the death penalty for the suspect in the Manhattan terror attack.