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Trump Vows To Help Restore Jobs In China; U.S. Set To Break With Tradition And Open Embassy In Jerusalem; Bolton Threatens European Countries; Caged Tiger At Prom Sparks Uproar. Aired 5:30-6a ET

Aired May 14, 2018 - 05:30   ET


[05:31:36] CHRISTINE ROMANS, CNN ANCHOR: President Trump is trying to bring jobs back to China. A potentially stunning reversal from the president who wants to relax penalties on a major Chinese telecom firm.

DAVE BRIGGS, CNN ANCHOR: The U.S. embassy in Israel moves to Jerusalem this morning, in just as few hours -- a high-level delegation on hand. Protests really starting to pick up in Gaza as well. We're live in the Middle East.

Wow, some disturbing video there as we see Ian Lee right near some dangerous situations. We'll go to Ian live here in just a moment.

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

ROMANS: And I'm Christine Romans. Thirty-two minutes --


ROMANS: -- the hour.

Let's begin with trade. A very big week this week for the U.S. and China on trade and the president is vowing to save jobs -- Chinese jobs.

Trump says he's working to get Chinese smartphone maker ZTE back into business, tweeting, "Too many jobs in China lost. Commerce Department has been instructed to get it done."

Now, just last month, Trump's Commerce Department crippled ZTE. It barred U.S. companies from selling ZTE vital parts. That punishment in response to ZTE violating U.S. sanctions by selling to Iran and then lying about disciplining the employees involved.

Here's Commerce Sec. Wilbur Ross last year calling ZTE's behavior, overall, egregious.


WILBUR ROSS, SECRETARY, DEPARTMENT OF COMMERCE: We are putting the world on notice improper trade games are over with.


ROMANS: Are they?

Now, the White House says Trump expects Ross to resolve the trade action that is hurting ZTE.

Trump's tweet grew sharp criticism from Democratic lawmaker Adam Schiff. He called ZTE's tech "a major cybersecurity threat." Said that Trump should "care more about our national security than Chinese jobs."

Trump's policy reversal comes as the U.S. and China gear up for round two of trade talks this week. A Chinese delegation heading to Washington this week. The goal, of course, to avoid a full-blown trade war.

Now, in a second tweet, Trump said China and the U.S. are now quote "working well together" after past trade talks were once one-sided, adding "Be cool. It will all work out."

BRIGGS: All right.

Tensions high in the Middle East. The White House doing what past administrations promised but failed to deliver by moving the U.S. Embassy in Israel to Jerusalem. The formal ceremony set for 9:00 a.m. eastern time.

The White House declaring the move reflects the reality that Jerusalem is the Israeli capital, but critics argue this effectively marks the end of America's role as an honest broker in Israeli-Palestinian peace negotiations.

Let's go live to CNN's Elise Labott inside this new embassy where clearly, it is calm as -- we'll get to those protests in a moment. But what should we expect there today, Elise?

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Well, Dave, you can see behind me the events getting set up as speakers are starting to get ready and the music is already starting to play.

A very high-level delegation here from the U.S. Dozens of congressmen and businessmen in addition to the head of the delegation -- Deputy Sec. John Sullivan, Treasury Sec. Steve Mnuchin. Jared Kushner, the president's son-in-law, who is set to unveil his peace plan in the coming weeks. And also, Ivanka Trump, the president's daughter, who arrived last night.

You know, see if you can hear me over the music.

She tweeted, "Thank you Prime Minister Netanyahu & Mrs. Netanyahu for the warm welcome to Israel. I am honored to join you and the U.S. delegation in commemorating the dedication of our new embassy Jerusalem and celebrating the friendship between our two countries."

[05:35:13] Now, President Trump is expected to make a videotape to address and also, Prime Minister Netanyahu set to address the crowd. He is obviously going to (INAUDIBLE) -- a little loud there -- other nations to move their embassy to Jerusalem.

There's a very controversial speaker also set to address this crowd, the Southern Baptist pastor, Robert Jeffress, who was a very big supporter of President Trump but highly criticized, Dave, for his comments against Muslims, against Mormons, Catholics, even Jews. So a very controversial speaker on what is a very popular move by President Trump here at the opening of the U.S. Embassy in Jerusalem.

BRIGGS: I'll tell you -- calm and cool, Elise Labott. The joys of live television -- well done. We could hear you loud and clear.

Thank you, Elise.

ROMANS: Well done, my friend, right through the sound check. All right.

The U.S. Embassy move to Jerusalem triggering protests on the Gaza border. Israeli Defense Forces tweeting out a video warning Hamas may attempt to breach security and carry out a massacre. Protests are really picking up.

And we've got Ian Lee there live from Gaza where he has seen some black smoke, he's seen some drone activity, and an awful lot of people gathered there.

Tell us what's happening behind you, Ian.

IAN LEE, CNN FOREIGN CORRESPONDENT: Yes, Christine, let me add one more thing to that.

We're seeing this kites. With these kites they have, on the bottom, this -- it looks like a rag that they light on fire. And what the goal is is to try to fly the kite over the border into some of these dry fields and we've already seen what looked like one fire started by these kites.

But, as you can see also behind me, there is this black smoke that they still keep lighting these tires on fire to obscure the site of Israeli snipers. And if I just look up and down this border beside me, I can see multiple sites where this black smoke is billowing, and these signal where these protest camps are.

Now, we're also hearing reports of at least one person killed already this morning and it is still quite tense here.

Here we go -- all right. It looks like there is a drone -- one of these tear gas drones that is flying over here. We're hearing the crack of live rounds. I don't know where that's coming from.

But these people -- you can see -- they're scrambling out of the way and this has kind of been the scene throughout the morning. We've seen these drones dropping this tear gas and then the people start scrambling.

I don't know if you can hear that but that sounds like the pop of live fire possibly trying to go after that drone. Here we go. Now you can see there. There's the tear gas that's dropping from the drone hitting into the crowds -- they're scrambling.

And they're trying to push these people away back from the border. The border is about oh, probably about maybe 1,000 yards away from me, but you can see that it's just a very tense situation.

We're expecting this to pick up throughout the day. Thousands of people -- the Israeli military predicts over 100,000 people are expected to come out. Their goal is to cross that border.

Israeli says they have a number of ways they're going to try to prevent that. First, with verbal warnings then with non-lethal tear gas. But if they get close enough they say then they will use live ammunition.

They say their greatest fear is for a large rush across that border. So, as you can see, today, very tense and already deadly.

ROMANS: And, Ian, the black smoke behind you -- you said earlier they were burning tires to try to sort of conceal their positions from snipers and from people -- from the Israelis trying to get a sense of where the crowd was moving.

LEE: That's right, and this has been a tactic we've seen throughout the past seven weeks of protest. And really, it draws a black curtain across this border to obscure the movements of the protestors as they try to get across.

Now, early this morning we're hearing from eyewitnesses -- and you can actually see the tracks. But an Israeli bulldozer came across and destroyed their berms -- these mounds that were on the Gaza side that the protestors were trying to use to hide behind. They destroyed them. Also, a fresh set of barbed wire strung out across that border.

But, you know, the first day -- when we were out here at his spot the first day of these protests, they didn't have these tires. But it just shows how these protests have evolved over the times where you do get, know, this black smoke that billows up obscuring the site. But I can tell you, if you get caught in that stuff it is quite nasty -- that black smoke.

But again, it is really just engulfing this border area right now.

ROMANS: All right. Ian Lee for us there in Gaza. Thanks so much for that.

[05:40:00] And again, according to the Palestinian Ministry of Health, one Palestinian has been killed during these protests and these skirmishes, so we'll continue to monitor this and get back to you soon.

Let's bring in -- back CNN political analyst Julian Zelizer, historian and professor at Princeton University.

Again, this is the move of -- the embassy is the catalyst for all of this. And this is a video that the Trump team just tweeted out, basically saying promise kept -- listen. (BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Jerusalem is still the capital of Israel and must remain an undivided city accessible to all.

GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: As soon as I take office, I will begin the process of moving the United States ambassador to the city Israel has chosen as its capital.

BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES: I continue to say that Jerusalem will be the capital of Israel and I have said that before and I will say it again.

And, Jerusalem will remain the capital of Israel and it must remain undivided.


ROMANS: President Trump can now say I'm the one who actually did it -- promise kept.


Many presidents said they would do this. They didn't -- they backed away. They were worried about the implications.

And, he's done it. And I think within Israel, you see the enthusiasm about what he's done.

And it signals a shift in the regional dynamics of this issue because overall, the response from many countries in the region has been pretty muted to this.

BRIGGS: The knock is that the U.S. is no longer an honest broker in peace negotiations. How does this impact the negotiations?

ZELIZER: I mean, it depends what he does. In some ways, the president now has some leverage.

He has a lot of goodwill in Israel. You can imagine some presidents using that to try to actually broker a legacy-making deal. Now, I don't know if he's interested in doing that or will do that, but there is a possibility that he tries to capitalize on this now to move in a different direction.

ROMANS: A huge this week for China and U.S. trade negotiations.

The president has thrown a lifeline to a Chinese firm that many have accused of cybersecurity threats to the United States and that the Commerce Department actually was trying to really hit hard. Now, the president says be cool. It will all work out. President Trump trying to save Chinese jobs.

What is his trade strategy here?

ZELIZER: Right. Here, he's backing away from a major campaign promise with a tweet.

I think one thing he's tried to do is avoid the reality of a trade war. I think he is a little bit spooked as this gets real and his rhetoric turns into as back-and-forth action.

And second, he's trying to set up negotiations with North Korea and he knows the Chinese leadership is upset about this, and I think you see him responding.

But, it's unclear if there's any bigger plan -- a game plan for how he's going to deal with these negotiations, other than day-to-day tweets.

BRIGGS: All right. His administration still taking some heat for this joke about John McCain, that he's still dying anyway, by a White House aide just last week.

Here's how Lindsey Graham addressed this controversy on Sunday.


SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: It's a pretty disgusting thing to say. If it was a joke, it was a terrible joke.

I just wish somebody from the White House would tell the country that was inappropriate. If somebody in my office said such a thing about somebody I would apologize on behalf of the office.


BRIGGS: Now, Lindsey Graham, John McCain's best friend.

Bernie Sanders, though, was equally as critical.

No apology from the Trump administration.

Does this say more about the political dialogue today or is this something the president's team is OK with?

ZELIZER: I think -- look, the president has lowered the bar about what you can say about opponents.

This White House doesn't have a lot of good feeling for Sen. McCain. President Trump has been the leading person attacking McCain ever since the campaign.

So I think the president is sending a clear message by not responding, by not having any kind of apology, and by focusing on the leaks. And the joke reflects the tenor that this president has set and that's why it bothers so many people on both sides of the aisle.

BRIGGS: Well, that tenor is reflected on both sides of the aisle --


BRIGGS: -- too. The dialogue is -- the race to the bottom, as you call it on the piece.


ROMANS: Julian Zelizer, nice to see you. Thank you.

ZELIZER: Thank you.

BRIGGS: All right.

Iranian officials with a full court press to salvage the nuclear deal, minus the United States. How long are the Iranians willing to work to save it? We're live in Tehran with the latest.


[05:48:55] JAKE TAPPER, HOST, CNN "STATE OF THE UNION": Is the United States going to sanction European companies that do business with Iran?

JOHN BOLTON, WHITE HOUSE NATIONAL SECURITY ADVISER: I think the issue here is what the Europeans are going to do if they're going to see that it's not in their interest to stay in the deal.

We're going to have to watch the Iranians do. They'd love to stay in the deal. Why shouldn't they? They got everything they wanted from the Obama administration.

But I think the Europeans will see that it's in their interest, ultimately, to come along with us.


BRIGGS: All right.

National Security Adviser John Bolton refusing to rule out sanctions against European companies doing business with Iran. The Iranians now have announced a time line for saving the nuclear deal that President Trump just abandoned.

Fred Pleitgen live in Tehran with the latest. Good morning, Fred.


Yes, 60 days is what the Iranians are saying, and the Iranians are also saying that they have specific things in mind. They want to make sure that if a deal is going to be there going forward that it needs to protect Iranian interests. That means that companies, for instance, from Europe, have to be able to invest in Iran without facing retribution from the United States.

Now, right, now, Iran's foreign minister, Javad Zarif, is in Moscow. He's talking to Sergey Lavrov, the foreign minister there. They came out with a joint statement saying both are absolutely committed to the nuclear agreement without the United States.

[05:50:10] Russia, by the way, a country that stands to benefit a great deal economically if the deal stays in place.

The big test, though, is going to be tomorrow when then, the foreign minister goes to Europe. He's going to be speaking to some of his European counterparts. And as John Bolton was saying in that statement, the big question is what are the Europeans going to do?

The Iranians are asking them to stand up to the United States, essentially. But, of course, the U.S. is a very old ally -- Dave.

BRIGGS: All right. Fred Pleitgen live for us in Tehran -- thanks.

ROMANS: All right, let's get a check on "CNN Money" this morning.

Asian stocks rising overnight on hopes of improving U.S.-China trade relations. President Trump vowing to save Chinese smartphone maker ZTE -- vowing to save Chinese jobs right before another round of trade talks. A U.S. ban, last month, crippled the smartphone maker.

Also, rising oil prices helped Wall Street to have its best week in two months. U.S. oil hit 70 bucks a barrel last week, boosting energy stocks. The entire sector is up 12 percent in the last year -- or month, rather.

That's great for oil companies, bad for drivers. A typical family can expect to spend $200 more on gas this summer.

Apple's CEO taking a jab at Facebook. Tim Cook told Duke graduates this yesterday.


TIM COOK, CEO, APPLE: We reject the excuse that getting the most out of technology means trading away your right to privacy. So we choose a different path, collecting as little of your data as possible, being thoughtful and respectful when it's in our care.


ROMANS: This isn't Cook's first time criticizing Facebook. Facebook facing backlash, of course, for exposing the data of nearly 90 million users.

In March, Cook said Apple could make a ton of money, too, monetizing customers but chooses not to. He also wants to increase regulation on social media.

Could Boston win the bid for Amazon's second headquarters? A robot thinks so.

Wells Fargo's A.I. (artificial intelligence) predicts Boston will host HQ2, Amazon's new $5 billion facility. Cities are in a bidding war for this. HQ2 will create up to 50,000 jobs. Amazon released a short list of finalists in January. After Boston,

the artificial intelligence robot thing picked Chicago, Atlanta, New York, and Toronto as likely choices.

BRIGGS: The betting odds on Bovada have northern Virginia as the number one favorite --


BRIGGS: -- followed by D.C., Austin, and then Boston.

ROMANS: It's going to create a lot of jobs --50,000 jobs -- but what are these cities willing to give up to lure those jobs. Do you know?

BRIGGS: Anything and everything.

Ahead, is this something you want at your child's prom? Parents and students outraged after a caged tiger is rolled out on "Welcome to the Jungle" night.


[05:57:11] BRIGGS: All right.

Breaking overnight, a new fissure opening up near the Kilauea volcano. Officials say it's active and producing fumes and lava spatter. They say an eruption is still possible at the top of the volcano which could send boulders the size of refrigerators flying and generate ash plumes.

ROMANS: More residents on the Big Island forced to evacuate after a new fissure several hundred yards long opened up.

And that is the crackling sound of a home going up in flames. Vacation rentals in Lower Puna directed to close to relieve the demand for water.

Also breaking overnight, at least four police officers and six civilians injured in an attack outside a police station in Surabaya, the second-biggest city in Indonesia. Four suicide bombers on two motorbikes carried it out.

This comes a day after a husband and wife used their four children in a string of deadly suicide attacks on three churches there, leaving seven people dead. The family included two daughters, aged nine and 12, and two teenage boys.

Investigators believe the parents belonged to a terrorist group that lends support to ISIS in Indonesia, but no proof ISIS actually directed the attack.

ROMANS: The attacker who killed one person and wounded four in a stabbing spree in Paris was on an anti-terror watch list. A judicial source says he was suspected of having radical views but had no criminal record. The suspect was shot and killed by police after he stabbed five people Saturday night. He yelled the Arabic phrase "Allahu Akbar" during the attack.

The attacker's mother and father and a friend are in police custody for questioning.

BRIGGS: Welcome to the jungle. A caged tiger causing an uproar at a high school in Miami. "Welcome to the Jungle" was the theme for this year's Christopher Columbus High School prom night.

Several students and parents complaining about safety and the stress the tiger appeared to be in. They're showing the tiger pacing back and forth on the video.

The school defending the animal entertainment, claiming the tiger was in a relaxed state most of the time -- not what we see there -- and it was overseen by a state licensed facility.

ROMANS: Caged animal as a prom prop? Yes or no in 2018?

BRIGGS: Let us know @EarlyStart on Twitter.

Thanks for joining us, everybody. I'm Dave Briggs.

ROMANS: And I'm Christine Romans. "NEW DAY" starts right now.

The artful dodge by you.


UNIDENTIFIED FEMALE: President Trump is vowing to save jobs yet again, but this time it's actually Chinese jobs

UNIDENTIFIED FEMALE: ZTE will allow the Chinese government to spy on U.S. citizens.

UNIDENTIFIED MALE: And I'm confident we have earned their trust.

GRAHAM: It's a pretty disgusting thing to say. It was a terrible joke.

UNIDENTIFIED MALE: The White House needs to get a handle on who's leaking.

SEN. BERNIE SANDERS (I), VERMONT: I just don't know what goes on in that White House mentality for there not being an apology.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We will finally open the American embassy in Jerusalem.

UNIDENTIFIED MALE: We don't need to do things that's going to cause further turbulence.