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Travel Ban In Effect At 8:00 P.M. Tonight; Aide to Pope Faces Sex Charges; Trump's Health Care Message; Venezuela's Attorney General Facing Court Date. Aired 4:30-5a ET

Aired June 29, 2017 - 04:30   ET


DAVE BRIGGS, CNN ANCHOR: The president's travel ban takes effect tonight. In just a few hours, the new guidelines overnight lay out who can and cannot enter the U.S., and it turns out only certain family members will make the cut.

[04:30:04] CHRISTINE ROMANS, CNN ANCHOR: A top aide to the pope will face sex assault charges. This morning, Cardinal George Pell is denying all accusations before he heads home to face a judge.

BRIGGS: And President Trump --


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Health care is working along very well. We could have a big surprise with a great health care package.


BRIGGS: As President Trump trying to rally the Republican troops on health care, can he get the Senate on the same page despite a massive ideological divide?

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

ROMANS: And I'm Christine Romans. Nice to be back with you today.

BRIGGS: Great to have you back.

ROMANS: It is 30 minutes past the hour. And a lot going on.

Breaking overnight: New rules for implementing President Trump's travel ban that takes effect tonight at 8:00 p.m. That's the word from a senior administration official.

We're also getting specifics this morning on who will be allowed into the U.S. from the six Muslim-majority nations and who will be kept out.

BRIGGS: The Supreme Court laid out a general guideline that those with a credible claim of a bona fide relationship can come. New administration guidance sent to overseas posts Wednesday says visa applicants must prove they have a parent, spouse, child, adult son or daughter, son or daughter-in-law, or a sibling in the U.S. ROMANS: Right. Among the relationships not on the list --

grandparents, grandchildren, aunts or uncles, nieces or nephews, cousins, brothers in law, sisters in law, fiances or other extended family members.

The high court ruled those accepted to universities or workers who have taken a job at a U.S. company will be allowed in.

BRIGGS: The travel ban news coming after Homeland Security Secretary John Kelly announced new global aviation security measures which do not include an all-out laptop ban as some expected.

CNN's Rene Marsh has more from Washington.


RENE MARSH, CNN AVIATION AND GOVERNMENT REGULATIONS CORRESPONDENT: Christine and Dave, Homeland Security Secretary John Kelly announced new global aviation security measures on Wednesday. Now, the new measures are directed at overseas airports with direct flights to the United States. Kelly says that the measures will be both seen and unseen, and they'll be phased in over time.

These new security measures will include greater scrutiny of passengers entering the United States, enhanced screening of electronic devices, and the increased deployment of K-9s that detect explosives. It will be up to the airlines to implement the changes since DHS, the Department of Homeland Security, only has jurisdiction over carriers that fly to the United States. They don't have jurisdiction over foreign airports.

Now, if an airline refuses to follow the new security measures, they could be included in a laptop ban, face financial penalties, or they could be banned from operating direct flights to the United States.

The Department of Homeland Security says that the move is a way to address the threat that intelligence suggests is looming without having to do an all-out laptop ban.

Back to you, guys.


ROMANS: All right. Rene Marsh in Washington, thank you, Rene.

Cardinal George Pell, a top adviser to Pope Francis and the highest ranking member of the Catholic Church in Australia, is facing sexual assault charges this morning. Speaking at the Vatican a short time ago, Pell proclaimed his innocence, not only denying the allegations, but promising to return to Australia to fight the charges and clear his name.

CNN's Delia Gallagher is in Rome with the latest.

Delia, what can you tell us? DELIA GALLAGHER, CNN VATICAN CORRESPONDENT: Well, Christine, as you

mentioned, the cardinal came out this morning here at the Vatican to say that this was a relentless character assassination. These allegations have been swirling in the media for some time. And the cardinal has always denied them.

What's important this morning is that the Vatican as well came out and said that they are supporting the cardinal, that they have respect for the Australian justice system which will have its trial and that they are allowing him a leave of absence to return to Australia. So, there's no question of him having to be extradited or being protected by the Vatican. The cardinal saying he is going to clear his name.

What's really significant about this, not only with these charges being brought against one of the highest officials of the Catholic Church, but at a time in the pontificate of Pope Francis where he has been criticized for his handling of sex abuse. You know, he came in on a zero tolerance policy. He established a commission to advise him on sex abuse. One of his most prominent members, Marie Collins, resigned a few months ago saying it was ineffective.

So, in all of the praise for Pope Francis, there has been criticism for him on sex abuse. So, this is going to be a very important test case. Not only for the question in Australia and for the alleged victims there and for Cardinal Pell but for the Vatican and Pope Francis who will, of course, be waiting for the outcome of that trial on July 18th -- Christine.

[04:35:03] ROMANS: All right. Delia Gallagher, in Rome for us this morning, thank you, Delia.

BRIGGS: Meanwhile, pressure increasing on Senate Republicans to come up with a health care bill that can pass the Senate. They're still trying to thread an incredibly tight needle that will satisfy both moderates and conservatives. But that's not stopping President Trump from sounding optimistic.

Just a day after Senate leaders called off the health care vote for this week, the president offered this thought.


TRUMP: Health care is working along very well. We could have a big surprise with a great health care package. So, now, they're happy.

REPORTER: What do you mean by big surprise, sir?

TRUMP: I think you're going to have a great, great surprise. It's going to be great.

UNIDENTIFIED MALE: Thank you very much.


ROMANS: Promising a big surprise in the next episode.

BRIGGS: With the Chicago Cubs in the backgrounds, by the way.

ROMANS: No word -- yes, that what that was? All right. No word on what that would be.

Worth noting the president has a history of raising, then dashing expectations. Senate Republicans are said to be making progress, and the president is open to changes.

CNN's Phil Mattingly has more on that from Capitol Hill.


PHIL MATTINGLY, CNN CONGRESSIONAL CORRESPONDENT: Now, Dave and Christine, there was some optimism if no clear path forward yet, at least when it comes to health care. Look, senators are kind of moving things behind closed doors again, trying to figure out a way to hammer forward on a deal. How that deal's actually going to come about is still an open question.

But one of the biggest issues is that this isn't about one policy here or one provision there. This is about ideology. And inside the Republican Conference, all 52 senators, some have starkly different views about the government's role in health care.

Take a listen to what Maine Senator Susan Collins had to say.

SEN. SUSAN COLLINS (R), MAINE: There is significant opposition to the health care bill here in the Senate. The opposition comes from various quarters and ideological spectrum is really wide. So, it's going to be a challenge.

MATTINGLY: Now, guys, a key element here is this: Susan Collins very much so has fundamental, that's her word, problems with this bill. She's kind of on the moderate side of things. If you look on the complete opposite side of the spectrum, Rand Paul is in a similar place but for very different issues. And when you kind of consider those dynamics, you recognize why this is such a difficult process for Republican leaders in the U.S. Senate.

Now there's a pot of money for them to work with to try and appease the senators from Medicaid expansion states. Some of the senators who are concerned about opioid addiction and trying to address that. On the other side of things, trying to figure out ways to appease those conservatives who want those regulations cut back further.

But at this point, they haven't quite figured out that magic bullet yet. We'll see if they get there. They certainly want to get this done or at least have a compromise agreement hammered out by the end of this week. Get a CBO score next week. Come back and vote on it the week after.

They've got to get the compromise agreement first. And at least at this point, they aren't there -- Dave and Christine.


BRIGGS: Still a heavy lift. Thank you, Phil.

Happening today, the House votes on two pillars of the president's immigration strategy. The first bill known as Kate's Law would stiffen mandatory penalties for those who reenter the country illegally after being deported. The second bill penalizes so-called sanctuary cities that don't cooperate with federal immigration enforcement measures.

ROMANS: President Trump touting his support for both yesterday via Twitter. Tomorrow, the House votes on Kate's Law and No Sanctuary for Criminals Act. Lawmakers must vote to put American safety first. #SaveAmericanLives.

The president also trying to build momentum by meeting with families of victims of crimes committed by undocumented immigrants.

BRIGGS: CNN has learned senior administration officials say they are having a hard time, convincing the president that Moscow still poses a threat. A congressional source saying NSA Director Mike Rogers expressed his frustration with lawmakers in a closed door meeting, saying the president is not accepting intelligence that Russia melded in the election.

ROMANS: Another senior official says there's, quote, no evidence steps are being taken to address the issue. White House Press Secretary Sean Spicer says the White House combats malicious cyber activity on a regular basis and will do so without bragging to the media.

President Trump resuming his fight with Amazon founder Jeff Bezos. The president tweeting that the Amazon "Washington Post" is not paying, quote, Internet taxes, and that it's fake news.

First off, "The Washington Post" isn't owned by Amazon but Bezos personally. It's not clear what the president means by Internet taxes. If it's sales tax, that was true of Amazon, but not anymore. For years, brick and mortar stores blasted Amazon for not paying sales tax, because states only tax retailers with a physical presence, giving online companies an advantage. But since then, Amazon has opened stores and fulfillment centers. It now pays taxes in every state.

The president frequently attacked Bezos during the campaign, claiming he used the "Washington Post" as a toy.


TRUMP: Amazon is getting away with murder tax-wise. He's using the "Washington Post" for power so that the politicians in Washington don't tax Amazon like they should be taxed.


[04:40:06] ROMANS: Relations seem to have warmed since the election. The Amazon CEO has met with the president several times, including with other tech executives earlier this month. So, he's sitting next to Satya Nadella and to his left then is Jeff Bezos in that --

BRIGGS: You wonder if there's pushback from Bezos, the hashtag #AmazonWashingtonPost was hysterical yesterday. There's some great memes on that.

ROMANS: Like Wonderwoman-like in there, yes, delivering a package.

BRIGGS: Check it out on Twitter.

All right. President Trump kicking off his bid for a second term. Yes, already. Why so early? How rare is this? And why the venue is raising some eyebrows.


BRIGGS: National Security Adviser H.R. McMaster says the U.S. has prepared a range of options to use against North Korea, quote, including a military option.

[04:45:05] Two U.S. military officials tell CNN updated options have been prepared. They'll be presented to President Trump if North Korea conducts a nuclear or ballistic missile test that shows it's made significant progress developing a weapon that could attack the U.S.

McMaster publicly confirmed those options in remarks Wednesday at a Washington think tank.


H.R. MCMASTER, NATIONAL SECURITY ADVISER: The threat is much more immediate now. And so, so, it's clear that we can't repeat the same approach, failed approach of the past. The president has directed us to not do that. And to prepare a range of options including a military option which nobody wants to take.

There's a recognition that there has to be more pressure on the regime. I think what you'll see in coming days and weeks are efforts to do that.


ROMANS: This comes following the death of American student Otto Warmbier while in North Korean custody, and a day ahead of a visit to Washington by South Korean President Moon. McMaster says the visit will include discussions on a new approach to North Korea.

I want to talk about in and get the latest from CNN's Paula Hancocks in Seoul for us this morning.

So, the president weighing a range of new options on North Korea.

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, Christine, they say they are new options, but to be honest, these options are the same as they have always been. It is understandable that a new administration wants to update those options. And certainly, the military option has to be updated considering North Korea has very clearly stated that it wants to be able to hit the mainland United States with a nuclear tipped ballistic missile.

But, basically, the options we're looking are negotiations, dialogue potentially, or you're looking at sanction, whether or not those can be strengthened against North Korea. The China option -- whether or not China can put more pressure on North Korea to stop its nuclear missile testing, and whether it wants to put more pressure on. And, then, of course, the military option which McMaster did point out nobody wants. That's not a viable option at this point.

And also at this point, six North Korea experts based in the United States have actually written an open letter to President Trump saying that now is the time to talk, urging him to talk in order to, quote, avoid a nuclear catastrophe. That could well be the message we hear as well from the South Korean President Moon Jae-in when he meets with President Trump later today. He is pro-engagement, he is pro- dialogue.

But very interestingly, people here and certainly the media here in South Korea, is not focusing on North Korea, not focusing on matters of it substance. They're more concerned about the personal relationship between the two. They are wondering at this point whether or not the handshake will be a good handshake. Whether or not President Moon and President Trump will get on.

So, certainly, the more interpersonal dimension is being discussed here in South Korea.

ROMANS: Paula Hancocks for us in Seoul, thanks, Paul.

BRIGGS: All right. President Trump's 2020 campaign kicked off last night. Yes, you heard that right -- 2020 under a shroud of secrecy. The White House abruptly changing course, hours after saying a press pool would be allowed. Officials blaming the switch on confusion with the Republican national committee and the logistics of bringing the press in at the last moment.

This as more than two years earlier in the cycle than George W. Bush or Barack Obama held their first re-election fundraisers. Strategists say the president is sending a message to Republicans that he's not going anywhere.

BRIGGS: RNC officials say they expected to raise about $10 million from the event at the Trump International Hotel in Washington. That's right. He had a fundraiser down the street from the White House in a hotel that he owns.

A source familiar with the president's speech says he was in peak entertainer mode and that, quote, it was well-worth what everybody paid. The very fact that the fundraiser was held at Trump's Washington hotel is still not sitting well with some lawmakers. Democratic Congressman Gerry Connolly called it another example of the massive conflict of interest around the Trump Hotel and, quote, just plain wrong.

A lot of political observers have said, look, this is unprecedented. He's breaking the rules as he's done all along the campaign. He's also most comfortable campaign, potentially, not governing.

BRIGGS: No question.

ROMANS: And so, here you go. Big message to potential primary challengers and to the Republican Party that, hey, I'm not going anywhere.

BRIGGS: But also, some would argue inappropriate given how much business has not been done. No major legislation. And of the 562 key positions in the administration, 390 have no nominee. So, where should his attention be at this point?

ROMANS: Right. He should be filling up the government roles.

You know, he touted Gorsuch and he touted some of his immigration executive orders and the like. But, yes, it's totally, totally unprecedented.

All right. Wall Street losing its appetite for Blue Apron, and Amazon is to blame. That's on CNN "Money Stream" next.


[04:54:07] BRIGGS: A bad situation in Venezuela is getting worse. The attorney general had her assets frozen as being barred from leaving the country by the Supreme Court. Luisa Ortega-Diaz has criticized the Maduro government's crackdown on protesters.

ROMANS: Authorities in Venezuela have now located the helicopter used in that attack on the country's supreme court. The pilot believed to be an officer in Venezuela's investigative police force is still at large.

Journalist Stefano Pozzebon has covered the unrest in Venezuela. He joins us live from London.

Stefano, the attorney general due in court next week. What is she accused of? Is the investigation a political message? What's going on?

STEFANO POZZEBON, JOURNALIST: Yes, Christine. What we're seeing is a massive conflict of authority between the government and attorney general's office. It's rumored that the attorney general used to be one of the close of -- President Maduro's closest allies, after a few months ago.

[04:55:04] In fact, in 2014, in the wave of unrest and protests in Venezuela, she was the one signing orders against protesters. Now in 2017, she broke the ranks and she has become, she took the baton as one of the harshest critics on Nicolas Maduro's effort to reform the constitution. So, we think we are seeing this conflict with sentences (ph) going one way, and the other.

Nicolas Maduro's allies that control the Supreme Court have called for a trial on Luisa Ortega to happen on the 4th of July. So, next week will be the next key date, and we're monitoring very closely to see how the situation develops down in Caracas.

ROMANS: It's so fascinating. You talk about the political unrest. But for the people -- for the Venezuelan people, it has been an economic crisis for some time, too. I mean, daily life is difficult.

POZZEBON: Daily life in Caracas is extremely difficult, and the rest of the country is even worse. Let's not forget that according to the latest figure published by the health ministry in March, up to 30 babies died every day in Caracas because of rising infant mortality. The economic crisis has hit every day economy, and it's hard to find every day (INAUDIBLE), milk, medicine, aspirin. These are stuff that in Caracas and elsewhere in Venezuela are getting precious by the day and harder to find.

So, the reason why people are taking to the streets every day, the reason why people keep despite growing use of public force to try to contend the protest, despite that, we are seeing these people take the street because they're hungry.

ROMANS: Stefano, thank you for bringing us up to speed on that. We look forward to your reporting in the future again. Thank you.

We'll also get a check on CNN "Money Stream" this morning.

Global markets, global stock markets, U.S. stock futures mostly higher today after Wall Street rebounded from Tuesday's losses. Big tech stocks boosting the Nasdaq to its biggest rally since the election. The S&P 500 had its best day in two months.

You can thank bank stocks. They rose about 1.6 percent after the Fed gave U.S. banks a clean bill of health. Stocks fell Tuesday after the Senate delayed its vote on the health care bill, prompting worries about the future of the president's economic agenda. So, that's a push-pull there you're seeing.

The iPhone, happy birthday. It turns 10-years-old today. Aw. I remember when you were just a baby.

Apple has sold more than one billion phones since its birthday. Did you know the iPhone almost didn't happen? Several former Apple engineers opened up to CNN about why the iPhone shouldn't have worked.


ANDY GRIGNON, FORMER SENIOR MANAGER, APPLE: When you make a new laptop, you make a new desktop, whatever, you start with a thing that works. You change the screen, maybe add a new little feature here and there. But that's it. You're done.

IPhone was brand new from the chip up. We had to write everything from scratch. We hit problems in every layer of every stack. It was a nightmare.


ROMANS: A nightmare that is, you know, ubiquitous. You can check out the entire story about the creation of the iPhone at

All right. Wall Street is losing its appetite for Blue Apron just as a new threat emerges from Amazon. The meal kit company is slashing its IPO price to $10 per share. That puts the value about a billion less than it had hoped.

Competition in the meal kit industry is tough. And investors worry about Amazon's deal with Whole Foods. Whole Foods and Amazon already offer prepared meals combined. It would have the largest distribution network of any meal kit service.

Do you do a meal kit?

BRIGGS: I've never tried one. I've long wanted to try Blue Apron. I've heard great things.

ROMANS: There's a lot of competition in the space.

BRIGGS: How did it work out for you?

ROMANS: I didn't try blue apron. I used a competitor. I liked. I liked it. It forces you to try new things.

BRIGGS: I love the idea of it being included and not shopping for 19 ingredients.

All right. EARLY START continues right now.


BRIGGS: The president's travel ban takes effect tonight, and no legal challenge can stand in the way. New guidelines released overnight lay out specifics on who can and cannot enter the U.S.

ROMANS: A top Vatican official will face charges of sexual assault. But this morning, he's defending himself before heading home to face a judge.


TRUMP: Health care is working very well. We could have a big surprise with a great health care package.


BRIGGS: Teasing the next episode. President Trump sending a message of sorts on health care. Will it be enough to get Republican senators all on the same page?

A very heavy lift remains on that health care bill.


BRIGGS: Good morning, everybody. Welcome to EARLY START. I'm Dave Briggs. ROMANS: Nice to see you all this morning, bright and early. I'm

Christine Romans. It is 5:00 a.m. in the East, this Thursday, June 29th.

Breaking overnight: new rules for implementing the Trump administration's revised travel ban. Those new rules take effect tonight at 8:00 p.m. That's the word from a senior administration official. We're also getting specifics this morning on who will be allowed into the U.S. from these six Muslim-majority nations and who will be kept out.