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Amazon Opens Check Out-Free Store; Government Shutdown Day 3; Senator Flake And Graham Back In GOP Folds; Impact On Government Shutdown; Super Bowl Set; Tokyo Conducts First Missile Drill. Aired 04:30-05a ET

Aired January 22, 2018 - 04:30   ET




[04:30:51] SEN MITCH MCCONNEL, (R) MAJORITY LEADER: It would be my intention to resolve these issues as quickly as possible. It would be my intention to proceed to legislation to address DACA.


CHRISTINE ROMANS, EARLY START SHOW CO-HOST: The senate majority leader intends to address immigration reform. Is that enough for Democrats to back a spending plan to reopen the government? Signs are mixed. We will find out at noon today. Welcome back to "Early Start." I'm Christine Romans.

DAVE BRIGGS, EARLY START SHOW CO-HOST: I'm Dave Briggs. You think we get a deal at noon?

ROMANS: I don't know. I think they are dug in.

BRIGGS: I think they are both dug in, yes. I see the shutdown continuing. Government shutdown day three. The pain feels real. It is Monday. Unpaid furlough for about 800,000 federal workers. At noon today in the senate, a key vote to reopen the federal government. Not long term, folks, but another C.R. through February 8th. New to the deal last night, Republican leader Mitch McConnell's intention to take up the bill that would extend protection for DREAMERS, immigrants brought to the U.S. as children. Republicans hope the McConnell promise will lure enough Democrats to turn the lights back on.

ROMANS: But overnight, two Democratic sources told CNN they expect today's vote to fall short. A top aide said McConnell's commitments are just not firm enough and a Republican source tells CNN McConnell's made no promises the house will take up whatever the senate passes. So there still there still optimism in the GOP and number two Senate Republican John Cornyn says it is better to have a successful vote today than a failed vote overnight.

BRIGGS: The Senate Republican aide say leaders think they have a shot of picking off enough Democrats to move forward. The aide said this is their off-ramp. Let's have Ryan Nobles with the latest from Capitol Hill. (BEGIN VIDEO)

RYAN NOBLES, WASHINGON CORRESPONDENT, CNN: Dave and Christine, good morning from Capitol Hill. It turned out to be a much earlier night than anyone expected. That is not because a grand bargain was struck with Democrats and Republicans. They just extended the debate for a little bit longer hoping that noon today Eastern Time would be an opportunity for a great breakthrough and the government will finally be open. This is what Senator majority leader Mitch McConnell said on the floor late last night.

MCCONNEL: It is my intention to resolve this issues as quickly as possible so we can move on to other business that is important to our country. Assuming the government remains open. It would be my intention to proceed the legislation that would address DACA, border security and related issues.

NOBLES: But McConnell's olive branch not enough for Democrats last night as they decided not to vote on the measure and give their members some time to sleep on the issue. There appears to be an issue of trust right now between with Republicans and Democrats. Democrats are insistent that a vote on immigration and in particular protection for the DREAMERS comes up before the next continuing resolution deadline which is now set for February 8th. Regardless of the back and forth between Republican and Democrats here on Capitol Hill, there is a stark reality for the hundreds and thousands of federal workers across the country. They don't have to go to work today. That means they will lose a paycheck for today because the government remains shutdown. Many of them waiting on edge to see whether or not Mitch McConnell and Chuck Schumer can set aside differences and cast a vote that would reopen the federal government. We will see what happens later today. Christine and Dave. Back to you.


ROMANS: All right. Ryan Nobles, very busy weekend for him. Two Republican Senators who broke from their party in Friday night are now back on the poll. Arizona Jeff Flake and Lindsey Graham of South Carolina agreeing to vote yes on the stop-gap funding bill known as the continuing resolution. Flake and Graham have been key participants in the negotiations with the Democrats. They believe the White House has not done enough to strike a deal.


UNIDENTIFIED MALE: Senator, you really think you can come up with agreement by the 8th?

SEN JEFF FLAKE, (R) ARIZONA: I hope, but I doubt it. It relies on the White House to actually work with us on this and we have not seen that yet.

[04:35:05] SEN LINDSEY GRAHAM, (R) SOUTH CAROLINA: The White House staff, I think, is making it very difficult. I talked with the President. His heart is right on the issue. I think he has a good understanding of what will sell and every time

we have a proposal it is only yanked back by staff members. As long as Stephen Miller is in charge of negotiating immigration, we're going nowhere. He has been an outlier for years.


BRIGGS: Friendly fire. The White House using the Senators own words to defend Miller and attack Graham. Saying, quote, as long as Graham is supporting legislation that side with people in the country illegally is going nowhere. He has been an outlier for years.

ROMANS: Overnight, the White House kept up pressure on the Democrats. Democrats can't shutdown the booming Trump economy so they shutdown the government instead. The president's decision is clear, we will not negotiate on the status of unlawful immigrants while the Democrats hold our government and our military hostage.

BRIGGS: Republicans and Democrats both pinning blame on the shutdown on each other, but voters had their own say on Washington's dysfunction. In the new CNN poll where Democrats lead in the generic congressional ballot for 2018 slipping to just five points versus the 18-point spread that was a month ago. The polls completed in a lead up to government shutdown which began on Saturday morning.

ROMANS: Helping us break down the shutdown is Chris Deaton again, Deputy Online Editor of the Weekly Standard. Good morning.


ROMANS: Just first we should remind everyone. Shutting down the government is congressional malpractice. It is their only job. The first job to keep things going. What do you make of the role of the President in all this? You heard Graham talking about the people around the President not helpful. The President has different views on DACA in his own heart. What do you make about Presidential leadership here?

DEATON: It seems to me, Christine, the President likes to negotiate with certain people. There are a few people on Capitol Hill whom he has relationships and I guess some semblance of trust. I'm not sure that is a word you can bandy about Washington these days. Regardless of parties in Democrats and Republicans. One of the people to highlight is definitely the minority leader in the senate Chuck Schumer. "The Times" reported on Friday that the President and Schumer had reached a tentative agreement that would be quid pro quo on immigration reform. The President would have gotten some sort of promise about funding for a wall, whether or not it is cold hard cash from the congress or coffers or authorization type of thing to allow for that. Who knows? I asked the Senator's Schumer spokesman for that. I will let you know what I hear. In return, the Democrats would get the DACA fix that they sought. That broke down. And Christine I think beyond that it really kind of a scene, like it is a hands on process. I don't get the sense that the Republican are confident that the President is the guy to come through with negotiation to seal this. It is all in McConnell's court. ROMANS: Can he go to Davos with this over his head?

BRIGGS: Brutal optics.

DEATON: Poor optics. This is an optically driven administration. Not quite sure that is the best look. Better than Mar-a-Lago.

BRIGGS: He did not go to Mar-a-Lago. You have to give him credit for recognizing that. The poll we talked about is an interesting one. Generic ballot breaking hard against the Democrats. If you believe this is a result. Also a DACA poll on which is more important. Avoiding a shutdown or continuing DACA. 56 percent, avoid a shutdown. How is this breaking for Democrats, Chris?

DEATON: I think there is a complementary poll to that that might shed a little bit of light here. I believe it may be the same poll that you are citing there where I believe I'm getting the numbers right with a plurality, 31 percent, or respondents placed the blame at the feet of the Democrats. But then a majority of respondents, once you combined the President's responsibility and the congressional Republicans responsibility ends up being on top of that. The President is a Republican and associated with congressional Republicans. That is a potent combination. They both carry the Republican label after their name. The Republican brand when it comes to keeping the government open is not exactly been awesome for the last five years so that doesn't do a lot of favors.

ROMANS: You know the White House line here is Democrats are holding the military hostage to benefit illegal immigrants. That is the line they are drawing. That is something Congresswoman Tammy Duckworth who is a double amputee and congresswoman now from Illinois. This is how she responded.


SEN TAMMY DUCKWORTH, (D) ILLINOIS: I will not be lectured about what our military needs by a five-deferment draft dodger.

[04:40:00] I have a message for Cadet Bone Spurs. If you care about the military, you would stop baiting Kim Jong-un into a war that put 85,000 American troops and millions of innocent civilians in danger.


ROMANS: First off, she is a Senator. Not congresswoman. Sorry about that. Secondly, cadet Bone Spurs. That powerful messaging and branding on her part.

DEATON: No question. Definitely some strong words. From a person who whenever you serve in the military and make these kind of sacrifices, you have obviously ultimate standing to reflect on this type of stuff. I think one of the bigger things to look at here, Christine, at the top of the segment, this is congressional malpractice from a standpoint that there is defense spending and spending for all sorts of programs. The federal employees furloughed for a short-term or potentially a longer time depending on how long this drags on. This is a large comprehensive issue you can pick off. One particular thing, depending on where you stand, this is politics. The shoe will find its way to the other foot. You will be able to message one way or the other no matter what. Nobody looks good coming out of this. That is how it works.

ROMANS: We were trying to figure out the last time we had a budget that was passed and signed into law. We don't operate like that. It is ridiculous.

BRIGGS: Congressional paychecks do continue.

DEATON: They do.

BRIGGS: All right. Chris Deaton, we will check in with you in the 5:00 hour.

Vice President Mike Pence in Israel this morning, but he is being forced to defend some comments about this government shutdown. Here is what he told troops near the Syrian border.


MIKE PENCE, VICE PRESIDENTIAL OF THE UNITED STATES: The Minority in the senate has decided to play politics with military pay. But you deserve better. You and your families shouldn't have to worry for one minute about whether you are going to get paid. As you serve in the uniform for the United States.


BRIGGS: Critics are accusing Pence of using U.S. military troops and props here. We have CNN Ian Lee live in Jerusalem with more on how is this splaying for the Vice President.

IAN LEE, CNN CORRESPONDENT: Good morning, Dave. Vice President is not backing down from those remarks. Saying the Democrats are playing politics with the military pay. You know, that shutdown is following him here in Jerusalem. Local newspapers are wondering if the Trump administration cannot make a deal with the Democrats over keeping the government running. How are they going to broker Middle East peace? Especially after last December announcement by the Trump administration that Jerusalem is the capital of Israel. That infuriated the Palestinians. They are not meeting with the Vice President during these trip also a local clergy something that the Vice President wanted to meet with one of the talk about the state of Christians in the region. They are shunning him too cancelling the meetings with the Vice President after the Jerusalem declaration. The Vice President will be meeting with Israeli Prime Minister Benjamin Netanyahu. They will be talking about Iran and Syria. Dave.

BRIGGS: All right. Ian Lee live for us in Jerusalem. 11:43 a.m. Thank you.

ROMANS: All right. President Trump and the GOP still riding the success of the tax bill. The shutdown has crippled the agency that oversees taxes. It is IRS will furlough most of its workers keeping just enough staff to begin processing returns. If you are waiting on an existing audit or some other tax matter, you are out of luck. The shutdown could even delay your refund. The 2013 shutdown deferred $4 billion in payment. That is Main Street. But investors could also lose out. SEC the agency that police of Wall Street may furlough most of its staff, suspending SCC investigation even postponing stock market debut until IPO's, that is the first of SCC. It worked full force during previous shutdowns, but most shutdowns occur in the fall. That is when the agency has money left over from the previous year. Speaking of investors. Will the shutdown affect stocks and market confidence? Today is the first chance for Wall Street to respond. We have futures down very slightly. It depends on how long it lasts and how acrimonious it gets. Those tax cuts were very important for Wall Street. We will see the earnings reports showing how much money they are making. A ton of money. That is the most important thing for Wall Street.

BRIGGS: Doesn't seem terrified of a shutdown, Wall Street.

Super bowl LII is all set. Patriots and Eagles. Again for the Lombardi trophy. How they punched their ticket next.


[04:49:00] BRIGGS: 4:48 Eastern Time. Hundreds more of those text messages that Republican say prove the Mueller probe is tainted are now in the hands of lawmakers. Nearly 400 pages of text between top FBI officials delivered to Capitol Hill Friday. The messages show some FBI staffers working on the Russia investigation are bias against the President.

ROMANS: In one exchange from February of 2016, FBI Lisa Page, calls it unbelievable Trump would win the GOP nomination. Counter Intelligence Peter Strzok who led the Clinton email investigation responds with now the pressure really starts to finish the Clinton probe. The first batch of texts included insults targeting both Democrats and Republicans.

Dozens of women's Marches taking place around the nation, this scenes playing out in cities including Seattle and Miami and Phoenix and Washington and New York and Philadelphia and Chicago and Cincinnati and Denver and Los Angeles and San Francisco across the country. Demonstrators calling for women's rights and equality urging people to vote in this years' mid-term elections.

[04:50:02] Sunday was the official anniversary of last year's women march in Washington that has been hundreds of thousand women flooded the street in Washington, D.C. in a remarkable display of resistance to President Trump was just a day after his inauguration. Huge numbers of activist also gathered in cities across Europe this weekend including London and Rome.

BRIGGS: All right. The Philadelphia Eagles punching their ticket to the super bowl with a 38-7 mauling of Minnesota. They now face the defending champion The Patriots. The first quarter of the NFC title game, the Eagles defense really made a statement at 7-0. Then 38 unanswered points. 50 yards intercept to return for touchdown by Patrick Robinson. Great block there at the 15 yard line. Completely shifting momentum here. The Eagles offense led by Nick Foles was fantastic. This is Philadelphia's third trip to the super bowl. They have never won the big game. They faced the Patriots in the Super Bowl back in 2005. Early on Sunday was vintage Tom Brady. The only difference in this game was the cut, the stitched up throwing hand, but still same old time Brady, two touchdown passes to Danny Amendola. Really was a difference in this game, 24-20, a comeback win, because the Patriots trailed by ten in the fourth quarter. Look at Amendola get his feet down. Eighth super bowl appearance for Tom Brady and Bill Belichick who have teamed up to win it five times. And Minnesota, again no team has ever played at home in the super bowl. Vikings thought they would be the first. Not so fast.

Blake was terrific. It looked like they had the game won. Tough loss.

ROMANS: Imagine a supermarket with no checkout lanes. Amazon opened the first physical cashier-less store. Walk in. Pick something up. Walk out. Details on CNN money stream next.


[04:56:30] BRIGGS: Government officials in Tokyo conducting the City's first missile evacuation drill to counter the nuclear threat from North Korea. Hundreds of volunteers rushing for cover inside buildings and underground after a siren signaling an approaching simulated ballistic missile. The drill is taking place in the heart of the city and that is where CNN Will Ripley live in Tokyo as it continues to snow. Will, tempting fate by building the snowball. Passersby may take a shot at you. Tell us how this went down and how unusual this weekend is for you.

WILL RIPLEY, INTERNATIONAL CORRESPONDENT, CNN: It really is unusual to see snow like this here in Tokyo, Dave. You are right. This is the first time in four years living here where I could have a snowball fight on the ground. Also rare here, the missile drills. Japan had a number of North Korean missile drills, but never before in a large city like Tokyo, because of the logistics behind it. 600 people involved a shutdown, portions of central Tokyo, people received alert messages on their phones and sirens blaring telling people to seek shelter in the subways or underground or in sturdy concrete buildings. This is enacting the nightmare scenario for Japan. A North Korea missile heading towards a highly populated area. Some 35 million people live in the greater Tokyo area. The Japanese government saying although things have quieted down and the two Koreas are talking right now and they are expecting a period of calm during the upcoming winter Olympics in Pyeongchang, Japan is saying don't let your guard down. They are watching after the Olympics and they believe there is a real possibility that North Korea to continue to test more missiles. Also very rare to see North Koreans on the ground in South Korea. That is exactly what is happening right now. There is a delegation from Pyongyang who is inspecting concert venues and they will be there throughout the coming hours. Dave.

BRIGGS: All right. Great stuff, Will Ripley live for us in Tokyo. Thank you. ROMANS: It is that time of morning. Let's get a check of money

stream. Global stock markets don't seem to care the U.S. government is closed. Features are down heading into day three of the government shutdown. So far Wall Street is not too concerned. A short impasse will not hurt the economy. In the past, shutdowns have not caused significant stock markets selloffs. In fact U.S. Stocks hit record highs on helped along by big corporate profits. Expect another slew earnings this week with reports from Netflix and Verizon and United, Ford and Caterpillar and Starbucks overall Wall Street views President Trump and his presidency is very pro Wall Street. That is why stocks are doing well. And the majority of wealth in 2017 went to the top 1 percent and the bottom half of the population saw no gain in wealth at all. That is according to Oxfam international. Proving the global economy is skewed in favor of the rich. It released the report ahead of the Davos world economic forum. That conference of course synonymous with the rich and the elite. President Trump is scheduled to head there this week. That could change if the shutdown endures.

Twitter will tell 700,000 people they interacted with kremlin-linked trolls. User either follow the Kremlin link troll account or they retweeted one of those tweets. Tweeter identified thousands of accounts connected with the internet research agency that Russian troll army that meddled in the 2016 presidential election. 700,000 users either saw something that was fake or retweeted some of that stuff.

All right. Imagine a supermarket with absolutely no checkout line. Amazon just open a cashierless store.