Return to Transcripts main page


Fire and Fury Book Gets to Trump's Skin; North and South Korea Breaking Barriers; Icy Winter Storm Hits Southern U.S.; U.S. Cuts Foreign Aid to Pakistan. Aired 3-4a ET

Aired January 5, 2018 - 03:00   ET



[03:00:00] NATALIE ALLEN, HOST, CNN: More outrage from the White House over an explosive new book. How the president and his team are trying to minimize the fallout.

GEORGE HOWELL, HOST, CNN: After years of silence an agreement to talk. North Korea says yes to dialogue with its neighbor to the south.

ALLEN: And in Massachusetts, neighborhood streets transformed into icy rivers. The impact of the monster winter storm.

HOWELL: You just got to really feel that people are dealing with that.

Live from CNN world headquarters in Atlanta, welcome to our viewers around the world. I'm George Howell.

ALLEN: I'm Natalie Allen. And CNN newsroom starts now.

Speaking of icy conditions this from the White House. We are just a few hours away from the release of a salacious new book about the Trump campaign and the White House. The publisher its rushing "Fire and Fury" by Michael Wolff to bookstores four days early.

HOWELL: CNN has an advance copy of the expose. Together with some of new reporting from the New York Times it shows just how badly Donald Trump wanted to avoid the Russia investigation. The Times cites source whose say that Mr. Trump ordered the top White House attorney, to stop Attorney General Jeff Sessions from recusing himself from the probe.

ALLEN: Some details from the book, one passage deals with then chief of staff, Reince Priebus and his reaction when he found out FBI Director James Comey have been fired. Quote, "So next it's a special prosecutor, said Priebus in disbelief to no one in particular when he learned shortly before 5 o'clock what was happening." Priebus denies he said that about the special counsel.

HOWELL: And another excerpt dealing with president Trump's decision to fire Comey. "Comey was a rat, repeated Trump. There were rats everywhere you had to get rid of them. John Dean, John Dean he repeated. Do you know what John Dean did to Nixon." Dean was Nixon's White House counsel who eventually testified against the president and much of his staff during the Watergate scandal in the 1970s. Dean served time in prison on a single felony charge. He now a CNN contributor.


JOHN DEAN, CONTRIBUTOR, CNN: I'm delight he reacts that way. I think it is a badge of honor with this president as I felt when high hit the top of Nixon's enemy lists. So I think it is good that the presidents are aware of Watergate. They're aware of the consequences of Watergate. And maybe he has some true understanding of Watergate.


HOWELL: President Trump leveling new criticism at the book and at Steve Bannon. Late Thursday he tweeted this, quote, "I authorized zero access to White House, actually turned him down many times for author of phony book. I never spoke to him for book. Full of lies, misrepresentations and sources that don't exist. Look at this guy's past and watch what happens to him and sloppy Steve." That's the new name for Steve Bannon from the president.

Here is CNN's Jeff Zeleny with more.

JEFF ZELENY, SENIOR WHITE HOUSE CORRESPONDENT, CNN: As the White House tried getting back to business, and focusing on its 2018 agenda the explosive criticism from Steve Bannon still consumed the West Wing.


UNIDENTIFIED FEMALE: Did Steve Bannon betray you, Mr. President? Any words about Steve Bannon?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I don't know, called me a great man last night. So, you know, he obviously changed his tune pretty quick.


ZELENY: In the Roosevelt room today that was all President Trump wanted to say about Steve Bannon, his former chief strategist. Yet, behind the scenes extraordinary feud raged on. The president's lawyers attempted blocking publication s of "Fire and Fury: Inside the Trump White House." The new book featuring Bannon's blistering criticism about the Trump family and the Russia investigation.

Today, the president insisted he is no longer in contact with Bannon, a long term friend and adviser he fired after eight months on the job.


TRUMP: I don't talk to him. I don't talk to him. That's just a misnomer. Thank you.


(END VIDEO CLIP) ZELENY: At the White House press briefing today press secretary Sarah

Sanders took it one step farther, falsely attempting to diminish Bannon's role.


SANDERS: I'm not aware that they were ever particularly close. I would certainly say that they have spoken a few times since he left the White House but it's not like there were regularly scheduled calls or certainly no meetings between the two of them.


ZELENY: That's hardly how the president described Bannon only two months after he fired him.


TRUMP: We'll have a very good relationship as you know with Steve Bannon. Steve has been a friend of mine for a long time. I like Steve a lot.


ZELENY: The president's allies rushed to his defense today. Pushing back against Bannon's suggestion that a 2016 meeting between Donald Trump, Jr., Jared Kushner, Paul Manafort, and Russian lawyer was treasonous and unpatriotic.


ANTHONY SCARAMUCCI, FORMER WHITE HOUSE COMMUNICATIONS DIRECTOR: Donald Trump, Jr. is a very patriotic guy, he's a very honest guy. And so I would bet my life savings on the fact that he has done absolutely nothing tresoonous.


[03:05:03] ZELENY: Chris Ruddy, another friend of the president's said Bannon had an exaggerated opinion of himself.


CHRISTOPHER RUDDY, CEO, NEWSMAX: I'm disappointed that Steve said some of the things he did. You have to remember this interview for the book probably took place a month or two after Steve was fired by the president at the White House. He probably had very raw emotions.


ZELENY: All this as the White House is now banning the use of personal cell phones for staffers and visitors to the West Wing. Sanders said the policy starting next week was not in response to the book.

(BEGIN VIDEO CLIP) SANDERS: Absolutely not. That it's a ridiculous characterization. This is about the security and the integrity of the technology systems here at the White House.


ZELENY: Now tow there is some skepticism here among some White House aides that this policy is not related to the book. Sarah Sanders said it's not. But some aides tell us privately that they hope, that this policy would not have been enacted. Like to talk to their family members, they work long 12 hour days here at the White House often longer. One person this ban does not apply to, that's the president who often talks on his cell phone as well.

Jeff Zeleny, CNN, the White House.

HOWELL: Michael Genovese is the president of the Global Policy Institute at Loyola Marymount University, also the author of the new book "How Trump Governs" joining us from Los Angeles. Always good to have you here on the show, Michael.


HOWELL: Quite a lot to talk about for sure. Let's start with the reporting from the New York Times that the special counsel Robert Mueller is aware of unsuccessful attempt by the president to lobby the White House Don McGahn to stop the attorney general from recusing himself. This goes to the believe that the White House attorneys and even the Justice Department that they work for him rather that working for the office of the president and under the Constitution.

Does this add another brick in the wall of possible obstruction in your mind?

GENOVESE: Well, you know obstruction is going to be a tough thing to prove. I think what this really demonstrates to us is that Donald Trump thinks that the office is a personal appendage of the person, Donald Trump. And that people should give loyalty to him or the Constitution or to the country at large.

And so, you know, I can understand why he would refer to people like Bobby Kennedy who helped his brother to Holder who helps Obama. And I think what he wants though is someone that will go even further. Someone who will see their job and this was very clear when heave interviewed Comey right before the firing, someone who would be personally loyal just to him even if it went against the Constitution and some of the rules and the laws of the Justice Department.

HOWELL: Well, it's not quite the way it works in the United States, right? You are loyal to the Constitution and of you obviously following the laws of the land. Let's also talk about what's coming out in this new book, Michael Wolff's book "Fire and Fury."

It's important to note here and while some of the reporting has been corroborated, there are some errors that are identified. Some sourcing vague at times. But in the one instance here Wolf writes the president insisted on a false narrative of what happened at Trump Tower with Don Trump Jr., Steve Bannon, Trump's son-in-law, Jared Kushner along with a Russian attorney.

The Times is reporting that Mr. Mueller's team is examining that statement, reportedly dictated on Air Force One. Explain the significance here?

GENOVESE: Well, that it's something that could very well be clear case of obstruction of justice. There are two different standards we need to be aware of. On the one hand, there's the legal standard. Did the president actively and knowingly obstruct justice?

There is also the political side, for example, if there is an impeachment inquiry. That would not require him to legally have gone against the law in any way. That could be very political. And so, on the two different dimensions the president is in trouble. The president may have lied about this. He may have misled investigators. And that would be clearly obstruction of justice. Probably illegal. Certainly politically dynamite.

HOWELL: All right. Also I want to talk here about Steve Bannon. Steve Bannon, reportedly gave Wolff unprecedented access to this White House. He's quoted many times in this book and in this case regarding the Paris climate accord, this selection from the book, we'll show you here. It was likewise that the move -- the move that Ivanka Trump campaigned hardest against the White House score, said Bannon, the b is dead, according to this quote from Steve Bannon. We have not heard anything from Steve Bannon to discard or go against it or to dispute it. What do you make of that?

GENOVESE: Well, you know, we're seeing a very public and a very ugly divorce between the president and one of his top aides and allies, who, Steve Bannon, who controls to some extent the far right-wing, the hard right, even the tea party wing of the Republican Party.

[03:09:57] And so, the president has to be very careful here. He doesn't want to overly alienate Bannon, and yet he's got to be stung by the fact that Bannon was talking about his family in ways that are quite derogatory. Don Jr. may have committed a treasonous act of certainly unpatriotic.

And so the president is trying to walk a fine line. When you are a president at 35 percent popularity, you can't afford to lose very many of your loyal supporters. And the question is, does Bannon hold key to those supporters on the far right or Trump have them on his own.

To the extent of the president may be worried about Bannon having 5, 6, 8, 10 percent of the republican base on his side. The president can't overly alienate Bannon. And so this very ugly divorce. You are probably going to see a lot of makeup kissing in the next few weeks as well.

HOWELL: I think I would pass on that scene. Michael Genovese, thank you so much for being with us. We appreciate you.

GENOVESE: Thank you.

ALLEN: And again, the book will be released in just a few hours from now.

Well, for the first time in more than two years, North and South Korea will meet next week for high-level talks. According to South Korea's unification ministry, North Korea has accepted South Korea's long standing invitation to dialogue and agreed to meet on January 9th. One of the main topics on the agenda next month's winter Olympics in South Korea.

Our Will Ripley joins us now from the South Korean capital. Hello to you, Will. An interesting that of all the issues, the serious issues on the table is the Olympics perhaps that are causing a thaw between these countries.

WILL RIPLEY, INTERNATIONAL CORRESPONDENT, CNN: And I think the reason for that, Natalie, is that, both sides sense an opportunity here. From the North Korean perspective if they can send a delegation to the Winter Olympics here in South Korean PyeongChang. If you have the optics of North Korean athletes marching alongside South Korean athletes in the southern part of the peninsula, which of course after so many decades of discontent and conflict between the two sides, Kim Jong-un can tell his people that he is taking steps to, towards peace.

And here on the South Korean side, the President, Moon Jae-in can also kind of keep one of his major campaign promises that he won his election on which is that this is a progressive government that wants to engage and want to have a dialogue with the North Koreans in hopes that it could eventually lead to more positive developments, such as a de-escalation of tensions, and of course, the ultimate end game from the South Korean side is the denuclearization of the Korean Peninsula.

Even if the North Koreans have said repeatedly that their nuclear weapons are not on the negotiating table. These are just one round of talks. This is not necessarily unprecedented. The last time that they met in person like this was in December of 2015 at the Kaesong industrial complex which was a joint business venture between North and South Korea. That was shut down.

And when that complex was shut down that's when the plug was pulled on that hot line. The phone hotline between the two countries that has now been reactivated. Now these talks are happening again. It's the first real sign of some positive momentum towards diplomacy in a way from the military confrontation that many in the region here feared, this region was inching closer and closer to, especially given the frenzy pace of missile testing, a nuclear testing over the last couple of years.

ALLEN: Now where does the United States perhaps play into the scenario, Will, as there has been so much tough talk from the U.S. president, perhaps he is taking some credit forcing maybe this talk to take place.

RIPLEY: Right. You heard from President Trump on Twitter. You heard from the Defense Secretary, James Mattis, saying the maximum pressure, policy, by the Trump administration is what has the led North Korea to take this step.

But that's not taking into account the fact that from the North Korean perspective they feel that they have just about rounded off their nuclear program. The most recently with that intercontinental ballistic missile test. So perhaps they feel that they've now proven their weapons capabilities enough. That they can come back to the table and have discussions.

But again, the discussions that are going to be happening here in South Korea right near the demilitarized zone that separates the North and South. They're not going to be focusing on the nuclear program, but on improving inter-Korean relations the first step of that working out the logistical details to get those North Korean athletes here to South Korea.

So, it's a smart -- it's a start. These are baby steps towards the ultimate goal which both the North and South Koreans have said they want a peace treaty. They've talked about the reunification of the Korean peninsula. We are extremely far away from that.

But you can't discount the value of two sides sitting down and having conversations the North and South. The North Koreans eventually would like to have direct talks with the United States. They want guarantees for the security of the government led by Kim Jong-un. They want acceptance as a nuclear power.

And of course, what the U.S. and its allies wants is a safer security situation on the peninsula which they think would have to involve North Korea giving up its nuclear weapons, some they say they're not willing to do.

[03:14:58] So, we'll be watching very closely on Tuesday. We need to see how long these discussions last. Sometimes the meetings last for an hour. Some times they've lasted ten hours. And then we'll get updates about what was discussed, what the next steps are.

And hopefully, at least from the South Korean perspective, they want more meetings, more discussions and they hope that it could lead to some greater diplomacy on these bigger issues beginning though, with the Olympics that kickoff in PyeongChang, South Korea just over a month from now.

ALLEN: Olympics have a way of bringing countries together at least for a little while. We'll see what happens, Will Ripley. Thank you, Will.


HOWELL: It's good to see these positive first steps for sure around the Olympics. Still ahead here, President Trump's first tweet of the year is having an immediate impact. The latest on unraveling U.S. ties with Pakistan. Still ahead.

ALLEN: And powerful winds, snow, record high tides flooding big problems facing millions of Americans. Massive winter storms and it's not over. Derek Van Dam will have the latest for us. HOWELL: Plus, later this hour. Another Obama-era regulation rolled

back by the Trump White House. This time raising questions about states' rights to legalize marijuana.

CNN Newsroom right back after the break.


HOWELL: Welcome back. Deadly protests in Iran are sparking action at the U.N. The Security Council is set to meet in the coming hours at the request of the United States and this comes after widespread anti- government protests that broke out last week.

ALLEN: Iran accuses the U.S. of stoking the violence. And Russia slammed the U.S. request for a Security Council meeting. It said the U.N. should also discuss U.S. handling of the occupy Wall Street and Ferguson, Missouri protests in sarcasm to the U.S. request.

Well, turning from Iran to its neighbor Pakistan where the U.S. is making good on its threat to suspend security assistance, this coming days after President Trump accused Pakistan of lies and deceit and giving safe haven to terrorists.

HOWELL: Now here is how the U.S. State Department described that move on Thursday. Listen.


HEATHER ANN NAUERT, UNITED STATES STATE DEPARTMENT SPOKESWOMAN: We are suspending security assistance. Security assistance only to Pakistan at this time. Until the Pakistani government takes decisive action against groups including the Afghan Taliban and the Haqqani network, we consider them to be destabilizing the region and also targeting U.S. personnel. The United States will suspend that kind of security assistance to Pakistan.


HOWELL: Pakistan now stands to lose planned shipments of military equipment and hundreds of millions of dollars in security aid.

Let's now bring in CNN's Sophia Saifi, live in the Pakistani capital of Islamabad. It's good to have you with us to talk about this. The president's move here goes to his belief that money talks. How is this being perceived by leaders there?

SOPHIA SAIFI, PRODUCER, CNN: Well, George, I mean, the tweet that came out on the first of this month. The first tweet of the year, it unsettled a lot of people at the beginning of the year. But this whole situation of putting a monetary value on whatever is happening it plays.

[03:20:03] I mean, people are saying here Islamabad, I've spoken to politicians, I've spoken to diplomats, there's a lot of, you know, almost -- they almost relaxed in a way that no, we'll be able to make up for the $255 million that's being suspended in the aid. We have China on the side.

But if you look at it from a broader perspective and I've spoken to quite a few economists regarding this, is that the United States at the end of the day is still the center of gravity when it comes to the world's economy. And when the United States -- when there are rumbles of discontent out of D.C. that plays into Pakistan's relationship with other countries as well.

Pakistan is looking for a lot of investment right now. We have had the Japanese foreign minister visit Islamabad yesterday. You've got Korean investment coming in. And that's all being affected that will of course, be affected when the United States is expressing so much discontent against the country.

Apart from that, not only was that financial aid suspended but there was also an announcement made last night that the State Department has put Pakistan on a special list of countries which has severe religious persecution against religious minorities.

That's another development that's taken place. And there is a lot of concern here, as to how much worse these relations between Pakistan and the United States can get. I spoke to the ambassador, the Pakistani ambassador to the United States and he told me that there is a lot of discontent in D.C. right now. They're trying to improve matters but for the time being one can just see and wait and kind of, keep a measured response to whatever is coming out of the United States with regards to security, funding, and aid. George?

HOWELL: Sophia Saifi, live for us in Islamabad. And certainly the question now, the leaders do they shift, as you point out possibly to China or even Russia or other countries that could provide investment, or does this, indeed make a difference? We'll stay in touch with you for the reporting. Thank you.

ALLEN: This week's massive winter storm in the United States is creating record high tides. Flooded streets, blinding snow, all along the U.S. eastern seaboard and into Canada's Maritimes.

HOWELL: It's even blamed for at least 16 deaths in the United States and it is wreaking havoc on travel. Flight reports 1100 flights already have been canceled in the U.S. on Friday.

ALLEN: In Massachusetts, check out this home surrounded by icy floodwaters. This is in a town southeast of Boston, after water breached a sea wall.

HOWELL: Also near Boston. This woman is probably feeling lucky after crews rescued her from this flooded home with a bulldozer.

ALLEN: Our reporters are right in the middle of this incredible mess.

HOWELL: That's right. Brynn Gingras is in Massachusetts and we start with Alex Marquardt in Boston.

ALEXANDER MARQUARDT, SENIOR NATIONAL CORRESPONDENT, CNN: It's been coming down all day, around 2 to 3 inches an hour. By day's end they're expecting it to have come down to around 16 inches. You can see here it's up to my knees, so around 12 inches. But it's not the snow that officials here are really afraid of. Bostonians, people from Massachusetts can deal with the snow. They're hardy folks, they're used to the cold, and the snow, it's really the wind and the freezing cold that is going to follow this snow storm.

They were expecting temperatures in the coming hours overnight and in the coming days to drop below zero. Possibly breaking records. That could result in power outages. And people losing their heat. And that's really the fear now for the people of Boston and Massachusetts.

BRYNN GINGRAS, CORRESPONDENT, CNN: And you can see I'm getting (Inaudible) right now with ice. All that ice if we turn the camera is coming off on this harbor here in (Inaudible). Look at those waves, I mean, they are really crashing in. And really most of its water is just filled with ice.

About five or ten minute drive from here is a little bit of hook in the land. And now some of these waves are actually even moving into some of the streets where people live here in (Inaudible). Of course, you can imagine officials have said, you know, evacuate if you can.

Just while the storm bears down on everyone because the major concern is that super moon. You know, all of us were admiring that super moon earlier this week. But that has cause higher tide than what they usually get. So that's the concern here.

HOWELL: Derek, you know what it's like to be out there. I think we all know what it's like to cover that weather.


HOWELL: And you know, the reporters really show you it is intense for a lot of people that are dealing with the storm.

VAN DAM: Seventy five percent of the country will be below freezing this morning. I mean, what is that?


VAN DAM: I guess this winter. But that's just a large population density to below freezing. The conditional kind of ramifications from agriculture to obviously people's lives. It has turn out this video again because this is really incredible.

[03:24:58] We've come across several of these videos on the internet at the moment. Just the coastal flooding that took place near Boston. This is just in south and east of Boston. What is that, a refrigerator? Is that a dish washer? I mean, my goodness. That's the last thing you want to see when you step outside the front door, right?

This is all coinciding with a very powerful storm that dropped 59 millibars. It's a measure of pressure in the atmosphere because meteorologist an idea of how strong the storm is. It dropped 59 millibars in 36 hours. The storm was explosive. It was huge. We heard the term bomb genesis being thrown around. Well, that's just an indication of how quickly this thing formed and strengthened.

But Boston harbor, particularly this area is susceptible to coastal storm surge around the low pressure that this powerful. Because of its position and because of the way winds rotate around the low pressure in the northern hemisphere. It's in a counter clockwise fashion. The winds were strong. It pushed up the ocean waters from the Atlantic and it also coincided with high tide on Thursday afternoon, right about 12 o'clock in the afternoon.

That in fact set a record or at least match a record set back in 1978 which if you'll ask any local Bostonian you know and they know that that was the benchmark year for blizzards 1978. Google that one. Forty eight centimeters, that was the most snowy found in Massachusetts, a very impressive snow whole totals from Connecticut to New York, grounding flights.

Take a look at that picture. It speaks a thousand words. I think that flight is not going to go anywhere, right? Over 1,000 flights as you heard one of our reporters already talked about being canceled on the day on Friday. Still going to affect right through the course of the weekend as one can imagine.

Good news is, the storm is pulling off to the north and east. The bad news is -- that it's drawing in arctic, arctic air from the north. And look at the winds that are going to be associated with the system that's going to drop our temperatures. At least the feel like temperature well below freezing. And we have hard freeze warnings all the way to central Florida. You imagine what that means for the agriculture business down there, citrus growers, people, et cetera. People are not used to that type time of weather down there.

ALLEN: What a way to start the New Year.

VAN DAM: It is, right. Happy 2018, I guess.

HOWELL: Meteorologist Derek van Dam, thank you.

VAN DAM: Thanks, too.

ALLEN: With U.S. Justice Department taking a new stand on the legalization of marijuana. Why that is no shock to those familiar with this attorney general. That's coming next here.

HOWELL: Plus, if you've get a notification update on your phone or computer software, don't wait. How major technology flaws are leaving billions of devices vulnerable.

ALLEN: Plus, how a slew of royal wedding theme mugs, postcards and other souvenirs could boost the U.K.'s sluggish economy.


ALLEN: Welcome back. You're watching CNN Newsroom live from Atlanta. I'm Natalie Allen.

HOWELL: And I'm George Howell with the headlines we're following for you this hour.

GEORGE HOWELL, CNN NEWSROOM SHOW HOST: I'm George Howell. The headlines will follow for you this hour.

ALLEN: "The New York Times" reports President Trump ordered a White House lawyer to stop Attorney General Jeff Sessions from recusing himself from the Russia investigation. The Times says special counsel Robert Mueller is aware of the attempt. The Justice Department denies it happened.

HOWELL: North Korea agreed to hold official talks with South Korea next week. According to South Korea's unification ministry. The two sides will meet January 9th. It follows the recent reactivation of a hotline between the two Korea's.

ALLEN: The U.S. is suspending security assistance to Pakistan. This comes days after U.S. President Trump accused Pakistan of harboring terrorists. Pakistan now stands to lose planned shipments of military equipment and hundreds of millions of dollars in security aid.

HOWELL: All right. Back here in the United States, the Trump White House, it has made two big moves on Thursday. Both rolling back regulations put in place by the Obama administration. The first to tell you about. The interior department, plans to lift the ban on, on new offshore drilling for the states of Florida and California.

ALLEN: The government is considering opening more than 40 sites for national gas and oil production and could open up nearly all U.S. Federal waters that were previously protected. Environmental groups were quick to react calling the plan dangerous.

Second the Justice Department is changing its approach to marijuana. The federal government considers the drug illegal. While a number of states have legalize pot in recent years.

HOWELL: Under the Obama administration, the policy became one of the noninterference policies, with those laws. But of the Attorney General Jeff Sessions is rescinding those directives. Tom Foreman explains.


TOM FOREMAN, CNN CORRESPONDENT: For President who relentlessly promised to get the federal government out of the way of state, businesses and individuals.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: For every one new regulation, two old regulations must be eliminated.

FOREMAN: The new stance on marijuana seems a sudden turn around and an outrageous one for some. On Capitol Hill, Republican Senator Cory Gardner from Colorado erupting.

SEN CORY GARDNER, (R) COLORADO: And we were told the states right would protected.

FOREMAN: He was promised no such move was coming.

GARDNER: I will be putting today a hold on every single nomination from the Department of Justice. Until the Attorney General Jeff Sessions lives up to the commitment that he made to me.

FOREMAN: President Obama often criticized the enforcement of pot laws.

BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: When you end up having very heavy criminal penalties for individual users. That had been applied unevenly. And in some cases with a racial disparity. I think that is a problem.

FOREMAN: And the nation has clearly been moving his way. Gallup found 64 percent of America in favor of legalizing pot last fall. And in the 22 years since California approved medical marijuana, the national conference of state legislature's notes 28 more states, the District of Columbia, Guam, Puerto Rico have enacted similar laws including Colorado which is one of the handful allowing recreational use. Pot industry there valued over $1 billion. Generating hundreds of millions in tax revenues. Did candidate Trump want to interfere with that?

TRUMP: I've wouldn't do that.

UNIDENTIFIED MALE: You think Colorado should do what they're doing.

TRUMP: No I think it is up to the states. I am a state person. I think it should be up to the states. Absolutely.

FOREMAN: But now that he is President. Some who staked their livelihood on the business are at best, bumps.

UNIDENTIFIED MALE: We fully expect the President to uphold this campaign pledge to stay out of the way of this laws that are working so well in states across the country.

FOREMAN: Interestingly, the U.S. Attorney for the Colorado district has said he doesn't see this making any immediate difference in terms of enforcement. They will continue to focus on people who represent a significant threat to the public and by that he is clearly indicating people who are dealing in marijuana illegally. Still not sure how the White House will react to that or where this will land. Tom Foreman, CNN, Washington.


HOWELL: All right. Tom thanks. State leaders had reacted angrily to this move. Jerry Brown, California governor says the administration is doubling down on a failed war on drugs.

The state just started allowing recreational weed sales this week.

ALLEN: Oregon Governor Kate Brown, lauded the nearly 20 jobs created by the marijuana market. Since it was legalized there in 2015. She called the move disruptive to the state economy. Washington governor state, criticized the Attorney General personally,

saying Sessions had refused his offers to discuss the issue face to face. Colorado State Senate Democrats used their twitter account to explain how marijuana helped their state. A couple of for fun. We will Jeff Sessions our legal pot when he prize it from our warm extremely interesting to look at hands.

[03:35:26] HOWELL: All right. Jeff Sessions should focus on political corruption and white-collar crime. Seems lot like there is plenty of that to go around in D.C. If only there was some way we could mellow him out. Adding the thinking that he is fair to think the emoji for good measure.

ALLEN: The U.S. stock market it's taking its record breaking hot streak into the New Year. The Dow closed Thursday about 25,000 for the first time ever. It is the sign of a roaring U.S. economy with a strong labor market. Big corporate profits. And, and a new business friendly tax cult.

HOWELL: Major world markets are benefiting from this robust U.S. games. Japan's Nikkei hit a 26 year high Friday. With other Asia markets mostly in positive territory. European markets open just moments ago.

ALLEN: In Britain many people home the frenzy surrounding Prince Harry and Meghan Markle's wedding will be financially lucrative.

HOWELL: Some analyst will predict the event could generate more than $650 million U.S. dollars for the British economy. Hannah Vaughn Jones has this reports for us.


HANNAH VAUGHAN JONES, CONNECT THE WORLD GUEST HOST: The cameras have hardly finished snapping pictures of the newly engaged royal couple, before post guards, themed mugs and items started lining displays in Windsor souvenir shops. Already capitalizing on what it's set to be U.K.'s biggest royal wedding for years to come.

UNIDENTIFIED MALE: It means anything. We are all really excited. Myself, staff. A massive boost off to the economy. It is going to be great to see so many people here. For the wedding. Actually to host the wedding itself.

VAUGHAN JONES: Prince Harry and Meghan Markle set to walk down the aisle, May 19. Kicking the business of Royal Fever into overdrive.

UNIDENTIFIED MALE: The uplift off to the royal wedding, we estimate overly at $500 million pounds. We think 200,000 will come from tourism, travel, hotels. About 150 million will come from people spending money having parties and celebrating.

VAUGHAN JONES: There is no telling if they've make an impact on Britain's economy. In 2011, Prince William's wedding actually reduced economic production. Possibly most brits were granted an additional public holiday. There are no plans for an extra day off this time around. Harry's wedding venue could also be less costly than his older brothers, trading Westminster abbey for location outside London, Windsor castle.

UNIDENTIFIED MALE: Delighted the wedding will take place in Windsor.

VAUGHAN JONES: It will be a more intimate affair. With highly exclusive guest list. Former U.S. President Barack Obama even unsure if he will receive an invitation.


VAUGHAN JONES: For all those who can't attend. Proximity may be the next best thing. About 350,000 additional visitors flocked to Britain for the 2011 wedding of Harry's brother.

UNIDENTIFIED MALE: We hope to improve the tourist trade. We hope the number will increase. Biggest source, of course, America.

VAUGHAN JONES: From inside Windsor are at home. The Britain's royal feast of pageantry will likely be enjoyed from all corners of the world. Hannah Vaughn Jones CNN, London.


ALLEN: Nothing like love to help the economy. Hopefully.

HOWELL: Absolutely. Still ahead here. How tech companies, including Apple are racing to fix billions of smart phones and computers that are at risk of being hacked.

ALLEN: It could be yours at risk there. Plus the President of France and Turkey are set to meet in Paris, we have a live report from the French capital about that. Just ahead here as we push on.


[03:41:15] HOWELL: Apple says that all its Mac systems and iPhones affected by hardware flaws that could expose devices to hackers. And they are not the only ones.

ALLEN: Computers and smart phones made by Google, Amazon and Microsoft are also at risk. This comes after researchers discovered major flaws in the chips that run those devices. Clare Sebastian has that story.


CLARE SEBASTIAN, CNN CORRESPONDENT: We all want our computers and phones to work fast as possible, but it seems that comes at a price. Security researchers say that pretty much all device that use modern microchips are vulnerable to two new bugs, capable of accessing your password, encryption keys and confidential data. That potential billions of computers, cell phones and even cloud computing systems. And part of what makes modern chips so efficient. That makes them vulnerable. This video from one of the research who detected flaws shows one of the bug, known as meltdown being used to steal a password in real-time. Both bugs work by exploiting a function called speculative execution. Process and ability essentially to predict and carry out tasks before they're needed by accessing multiple areas of memory. Now Intel isn't the only one affected. ARM and AMD chips are also vulnerable. Software makers like Microsoft and Google are racing to release patches. Intel CEO told CNBC they're close to solution for hardware makers.

BRIAN KRZANICH, INTEL CEO: We believe we have the right fixes in place. We had been testing those fixes. Making sure that we understand how to implement those. They start early next week.

SEBASTIAN: Intel was forced to defend Krzanich Thursday after it emerged he sold $39 million in company stock late last year months after the company was first alerted to the flaws in its chips. Intel says the sales was pre-arranged and unrelated. Important also to note, no hacks have been detected in the real world yet. Cyber experts say users need to stay vigilant. Clare Sebastian CNN Money London.


ALLEN: In Iran, protests against the government and ruling clerics are rare. That is what we have seen the past week. At least 21 people have died in those protest.

HOWELL: Government supporters have held their own rallies as well. And Iran's revolutionary guard claims the unrest is now over. Here is a look at how events unfolded.



UNIDENTIFIED MALE: We should be careful. We should pay attention to the ways this criticisms and the protests have amid.

[03:45:15] UNIDENTIFIED MALE: Any opportunity for a flaw is where they can enter.


ALLEN: The protest had subsided just a bit at this point. Iran and the, what has been going on in Iran is expected on the table today in Paris. French President Emmanuel Macron set to meet with the Turkish President Erdogan about three hours from now. CNN's Melissa Bell is in Paris. She joins us live for the latest. We will be covering this meeting and certainly, Melissa this is a meeting in the works for some time, but now this issue about Iran is something to be added to the agenda.

MELISSA BELL, CNN CORRESPONDENT: Iran will be on the table of course. And given all that happened. Over the course of the last couple of weeks. The United States moves its embassy to Jerusalem, Syria will be on the table and the important thing about this that it is the first time that the Turkish president has been received in the western capital since that failed push of July 2016. The concerns of the west over the human rights abuses since has simply prevented what had once a strong relations from continuing. And even today, this is something that is likely to come as well. And Macron made trademark of his ability desire to speak to everyone. But to speak to the clearly. He did it, with Russian President. When he visited Paris last, last summer. He said he is going to do it again with Russia. Today. Raising with him the question of those, 140,000 suspensions or sackings since the failed push. But also the 50,000 arrest that we see in the country since a particular athlete, journalist Turkey is second only to China, in the number of journalists that it is holding.

ALLEN: Will this be their first meeting between these two men. Since Macron had been president?

BELL: They have met before on the question. They met on the side lines of summit before. The first state visit. And given all that I have just said. There is a fair amount of controversy about it. And it is important to continue this relations indeed to try and warm them up. Again. From the point of view of the Turkish President. Very clear. Set out right. Believe it is time to find more friends and have fewer enemies. From the point of view the French president and this is an important relationship for Europe. Since, the Egyptian President remains one of the important partners Europe can have in the fight against terror. But also in trying to deal with a migration crisis that has proved intractable over the course of the last couple years. So Macron is leading the charge to thaw out that relationship. Within the Turkish press. Lots of speculation this morning. Actually. The Turkish President would have preferred a visit to Berlin. That of course is not on the top card.

Angela Markel has been vocal about those human rights abuses in Turkey. Than anyone else in Europe. Remember that last year, just as the Turkish referendum was about to take place. Ankara had accused Germany of Nazi practicing when Turkish minister has been prevented from campaigning in Germany. Still a fairly icy relationship. Macron will try to thaw it out. This will be a very short visit. Half a day Natalie. Two men will hold a press conference. They will have lunch. Holding a meeting at lunch. Press conference for journalists. It will be interesting to see the extent that macron it's outspoken about human rights abuses, the extent to which he is willing having gone a certain distance to try to thaw those relations to say things as they really are.

ALLEN: We will wait and listen for that. You will be covering it for us. Thank you so much. Coming up here. Hollywood gets ready for its golden knight, who is likely to go home with an award coming up.

HOWELL: All right. Hollywood couldn't have crafted this. A jewel heist. How thieves stole royal gems from a public display in broad day light. Stay with us.


[03:51:20] ALLEN: A couple of crafty thieves pulled off a heist in Venice Italy and got away with Indian jewels of indisputably elevated value. That is how the police put it. Or as local media put it loot worth millions of dollars. HOWELL: Lot of money. Police say the crooks mingled with visitors at

the palace. At an exhibition from the Qatari royal collection. Then they coolly opened the display case and grabbed earrings and diamond, gold and platinum broach. Wow.

ALLEN: It happened in broad day light on the last day of the show. The thieves tinkered with the alarm system kept it sounding for a minute until they were out of there.

HOWELL: All right. Now on to Hollywood. Award season kicks off Sunday with the 75th annual golden globes.

ALLEN: Nominees, for best drama include a fairy tale made for adults. A biopic that is politically relevant. Isha Sesay has a preview.


ISHA SESAY, NEWSROOM HOST, CNN: No surprise that Hollywood loved la land last year. Dripping with all glitz and glamour of cinema's golden age. Nominated for seven award at the golden globes it won all seven. This year, a different kind of film is topping the list with seven nominations. The shape of Walter is creature feature than Broadway musical. While Hollywood snubbed horror films at award season. It is reimagined the creature from the black lagoon as a love story. Unexpected romance up for best picture. This one, featuring a same sex couple.

Call me by your name a will call you by mine. A coming of age story where a professor's son falls in love with a doctor student. Also in the running for best picture. This foul mouth drama.

UNIDENTIFIED FEMALE: And, this is (BEEP) why don't you put that on you're good morning Missouri wakeup broadcast.

SESAY: Three billboards outside Missouri follows a mother's struggle to find their daughter's killer. While many critics praise the film. Some people have criticized its handling of racism.

UNIDENTIFIED MALE: There are 400,000 men on this beach.

SESAY: And, the World War II epic, Dunkirk is also up for best picture. Favorite among movie critics. Up for best Director as is Steven Spielberg for the post.

UNIDENTIFIED MALE: "The New York Times" was barred from publishing any more classified documents dealing with the Vietnam War.

UNIDENTIFIED MALE: If you publish.

UNIDENTIFIED MALE: You will be at the Supreme Court next week.


UNIDENTIFIED MALE: We could all go to prison.

SESAY: The film chronicles "the Washington Post" while it was led by first female publisher, portrayed by Meryl Streep, who is nominated for best actress in this role. She made ways at the last golden globes for using her speech to condemn then President elect Donald Trump for imitating a disabled reporter. Just months after Trump's victory, the 2017 award season was painted with anti-Trump overtures. A year later this season is cast in the shadow of the me-too movement with sexual assault allegations against Movie mogul Harvey Weinstein, denied the claims, and several high profile actors. Some expect the me-too movement could be in the award show spotlight.

UNIDENTIFIED MALE: Every holiday movie season people ask my least favorite question. Who will win the Oscar? I generally say, beats me. This year I have a ready answer. Someone not charged with sexual harassment.

[03:55:03] SESAY: Isha Sesay CNN Los Angeles.


ALLEN: That is probably a given right there. All right before we go we have this one for you. Maybe only this White House could pull off something that made people think of both "star trek" and "the wizard of Oz."

HOWELL: From beam me up, to no place like home in a strange press briefing. Jeanne Moos has the story.


JEANNE MOOS, CNN CORRESPONDENT: President Trump crossed the final frontier getting beamed up to the White House briefing.

HUCKABEE SANDERS: We have a message from a special guest I would look to share with you.

TRUMP: Thank you for being with us today.

MOOS: There he was on the video screens, prerecorded, reciting benefits from the tax cuts.

As Sarah Sanders stood by a bit awkwardly.

HUCKABEE SANDERS: Here he is pops up on the video screen, behind Sarah Sanders. It is like 200 steps from the oval office.

UNIDENTIFIED FEMALE: 200 if you have a small stride.

MOOS: Trump so afraid of questions he appears at press briefing, pre- tape video. Taunted a critic on twitter. Well he did avoid some zingers.

UNIDENTIFIED MALE: He is basically unfit to serve as the President.

UNIDENTIFIED MALE: Are there mental tests that go along with that.

MOONS: One tweet, Trump's giant head at this presser makes me think of the wizard of oz. Somebody pull down the curtain. UNIDENTIFIED MALE: The great and powerful Oz!

MOOS: There was no curtain grabbing to.

UNIDENTIFIED MALE: The great Oz has spoken.

MOOS: To disturb the stage craft of the briefing.

TRUMP: Thank you.

HUCKABEE SANDERS: Thank you, Mr. President.

MOOS: Instead of making the trek from the oval office. The President made like star trek.

UNIDENTIFIED MALE: Ready to beam up, Jim.


MOOS: Hail to the star chief. Jeanne Moos, CNN, New York.


ALLEN: That it's CNN news room. Thank you for joining us. I'm Natalie Allen.

HOWELL: I'm George Howell. The news continues next hour with Max Foster live in London.


MAX FOSTER, CNN NEWSROOM: Ahead on "CNN newsroom," the fire and fury is still raging around the White House. Donald Trump and his one-time top aide Steve Bannon. We'll have more from the soon to be released book, plus the new nickname the U.S. President has for his old friend.

News coming from the Korean peninsula. After more than two years of silence between the two sides, they'll sit down to talk.