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EARLY START

President Trump Readies For Battle At G7 Summit; Top Senate Staffer Arrested In Leak Probe; Trump: No Need To Prepare Very Much For North Korean Summit; Washington Capitals Win Stanley Cup. Aired 5:30-6a ET

Aired June 8, 2018 - 05:30   ET

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


(COMMERCIAL BREAK)

[05:30:13] DAVE BRIGGS, CNN ANCHOR: The president leaves for the G7 in just a few hours and he'll be leaving the meetings early while defending tariffs after another Twitter tirade at world leaders he'll see today face-to-face.

CHRISTINE ROMANS, CNN ANCHOR: A longtime Senate staffer arrested for allegedly lying about leaks of confidential information. His ex- girlfriend, a reporter for "The New York Times," had her e-mail and phone records secretly seized.

BRIGGS: And finally something everyone in D.C. can agree on. The Stanley Cup is headed to the nation's capital for the first time in franchise history. And the great eight -- one of the great players in hockey history, Alex Ovechkin, raising the cup.

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

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

BRIGGS: Happy Friday.

ROMANS: It is Friday -- G7 Friday we'll call it because Air Force One will be wheels up this morning for Canada and the G7 summit.

The president, though, won't be staying long. He plans to leave Quebec mid-morning tomorrow, skipping sessions on climate change and the environment.

The president expecting a brawl with top U.S. allies over trade. As late as Thursday afternoon he was questioning whether it even made sense to attend the G7 since he's going to be outnumbered on key issues. He doesn't want to go there and be lectured by our allies.

But, our sources say the president was told that canceling the visit outright would make it look like he's shrinking from a fight -- a fight he very publicly started.

BRIGGS: With that on his mind the president told advisers he'll enter the talks swinging. No official reason given for leaving the G7 early but we know from

Trump's own mouth that it's not to prepare for the North Korea summit next week.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: What are you doing to prepare for the summit with North Korea?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I think I'm very well prepared. I don't think I have to prepare very much. It's about attitude. It's about willingness to get things done.

(END VIDEO CLIP)

ROMANS: Attitude and willingness to get things done.

BRIGGS: Swagger, baby.

ROMANS: What will the attitude be like, though, in Canada?

BRIGGS: Yes.

ROMANS: Let's bring in Greg Valliere, chief strategist at Horizon Investments. He's live in Washington.

Good morning. Congratulations on your Caps. I know you've been up all night.

Emmanuel Macron, he had this tweet yesterday, late afternoon.

"The American president may not mind being isolated but neither do we mind signing a 6-country agreement if need be because these six countries represent values. They represent an economic market which has the weight of history behind it and which is now a true international force."

The president responding, "Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers. The E.U. trade surplus with the U.S. is $151 billion, and Canada keeps our farmers and others out. Look forward to seeing them tomorrow."

You know what, Greg? I'm told that inside the White House they are confident they are on the right side here. That the international trade system is broken --

GREG VALLIERE, POLITICAL ECONOMIST, CHIEF GLOBAL STRATEGIST, HORIZON INVESTMENTS: Yes.

ROMANS: -- and has been for years. The economy is very strong and this is the perfect time for Donald Trump, with his world vision on trade, to fix it.

VALLIERE: Well, if you want to use a hammer maybe he can get some results. But I think -- first of all, the reason he's leaving early is that I

think he knows how this movie's going to end and he knows there's not going to be a lot of happy faces -- a lot of smiles at the photo ops. Maybe smiles in the Korean talks but certainly not in Quebec.

But no, Christine, I would say that the tactics -- the way he's going about it not only has alienated our close allies, it's alienated a lot of Republicans in Congress.

ROMANS: But then he gives ZTE a lifeline, which is so interesting.

VALLIERE: Yes.

ROMANS: This is -- speaking of --

BRIGGS: A national security threat.

ROMANS: Speaking of alienating Republicans in Congress --

VALLIERE: Yes.

ROMANS: -- he gives this lifeline to ZTE and immediately, it looks as though he's doing favors with the Chinese for the broader trade negotiations there but he's alienating America's allies.

VALLIERE: Yes, and you know, by him saying that this is a national security issue -- that these allies are jeopardizing our security, that really angers them. They feel resentful that he would make an argument like that to allies we've had for decades or, in some cases, even centuries.

BRIGGS: So when it comes to trade though and all our allies angry, do you have to break some eggs to make an omelet?

Boris Johnson, the foreign minister of Britain, said he wishes Trump could do Brexit and told "BuzzFeed" this.

He'd be coming -- he'd be going bloody hard. There'd be all sorts of breakdowns, chaos. Everyone would think he's gone mad but, quote, "actually you might get somewhere."

So he gets concessions from Canada here, China there, Japan here, all around the world, does Trump win in the end without really any massive damage to our economy?

VALLIERE: Maybe. You would have to break some eggs to make this omelet but maybe, Dave.

But I would say that in the short-run he has a problem in the Farm Belt.

ROMANS: Yes.

VALLIERE: I think in the Midwest there's going to be a lot of resentment over soybean tariffs and things like that that the Europeans will impose. So this is going to be a rocky ride for a while.

[05:35:08] The other thing I'd say really quickly is that a lot of U.S. business leaders who were really confident last year after regulatory reform and tax cuts, now they've got something to be a little uncertain over. They're not sure how these tariffs will work out and I think that's a slight negative after a year of great, great business confidence.

ROMANS: I'm with you with that worry about the Midwest. I was just recently in the Midwest a couple of weeks ago and I'm telling you, farmers having to decide whether to plant corn or soybeans --

VALLIERE: Yes.

ROMANS: China buys soybeans from South America in the spring and North America in the fall. If you're planting, how do you know that there aren't -- there won't be tariffs later this fall? That's really -- that has a dampening effect on farmers and their farm income.

VALLIERE: Or, Christine, if you're a big multinational firm -- and they all plan three-four years in advance -- how do you make these plans when you're not sure how ugly this war could get? And I would argue that the trade war gets worse before it gets better.

ROMANS: So why are stocks doing so well? Records in the Nasdaq, the Dow above 25,000. I mean, the stock market is reflecting what Boris Johnson said, not what we're talking about right now.

BRIGGS: Yes.

VALLIERE: Yes, and I'd make this point.

The Atlanta Fed has a widely-followed index -- a survey -- and last week they came out with an astonishing prediction that GDP growth in this quarter could be --

ROMANS: Yes.

VALLIERE: -- 4.8 percent. When you --

ROMANS: Oh, my gosh.

VALLIERE: When you hear people talking about growth of four percent or better that's a very bullish story for the markets.

ROMANS: I know. I actually heard somebody say you need a trade war to dampen and strengthen the U.S. economy.

VALLIERE: That's right.

BRIGGS: Yes.

ROMANS: I'm like, oh my -- all right.

Greg Valliere, have a great weekend.

VALLIERE: You, too.

BRIGGS: Congrats, sir.

VALLIERE: Yes.

BRIGGS: Hoist the Cup.

VALLIERE: Yes.

BRIGGS: OK.

ROMANS: All right, it's 36 minutes past the hour.

A longtime Senate staffer arrested for allegedly lying to federal agents in a probe of unauthorized leaks. Fifty-nine-year-old James Wolfe is the former security director for the Senate Intelligence Committee.

Prosecutors say he lied to FBI agents in December about his contacts with three reporters, in some cases using an encrypted messaging app.

Wolfe worked under the leadership of both parties since 1987 before abruptly leaving at the end of 2017.

He is due in court later today.

BRIGGS: In connection with the Wolfe investigation, the "The New York Times" reports prosecutors secretly seized years' worth of phone and e-mail records of one of its reporters. The government did not obtain the contents of the e-mails and calls.

Reporter Ali Watkins had been dating Wolfe for three years. The "Times" reports she denies receiving classified information during the relationship.

The seizure suggests federal prosecutors are not letting up on their aggressive efforts to deter leaks that were also used under the Obama administration.

ROMANS: President Trump boasting there's no need to do a lot of prep work for next week's historic summit with North Korea and that doesn't seem to bother his secretary of state.

(BEGIN VIDEO CLIP)

MIKE POMPEO, SECRETARY OF STATE: There were few days that I left the Oval Office after having briefed the president that we didn't talk about North Korea. So over months and months, days and days, President Trump received -- has been receiving briefings on this issue.

I am very confident the president will be fully prepared when he meets with his North Korean counterpart.

(END VIDEO CLIP)

ROMANS: Now, the president says he may even invite Kim Jong Un to the United States.

Let's bring in Anna Coren. She is live from Tokyo. Good morning.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Hi, Christine.

Yes, a bit of surprise in this part of the world when they heard President Trump rolling out the red carpet for Kim Jong Un, his archnemesis not so long ago. Obviously, they want constructive talks to come out of next week's summit in Singapore but a little taken aback that he was so eager to extend his hand of friendship, obviously on the condition that talks go well.

What's the definition of successful talks? We do not know.

Does it mean full denuclearization of the Korean Peninsula which, as we know, the deal breaker to even these talks starting? Secretary of State Mike Pompeo saying that North Korea has given him that commitment. We haven't heard it come out of the mouths of the North Koreans.

Does it mean a compromise? Striking some sort of compromise allowing Kim to keep shorter-range missiles that could then hit this part of the world but in exchange giving up the longer-range ICBMs that would hit the United States.

Or does it just mean good chemistry between Trump and Kim, which we know -- you know, it carries a lot of weight as far as President Trump is concerned.

So, you know, as far as Trump says, this is going to be a summit filled with substance, not just optics. Take a listen.

(BEGIN VIDEO CLIP)

TRUMP: This will not be just a photo opp. This will be -- at a minimum, we'll start with perhaps a good relationship and that's something that's very important toward the ultimate making the deal. I'd love to say it could happen in one deal. Maybe it can.

(END VIDEO CLIP)

COREN: Look, he loves a deal and let's hope he can strike a deal. But as we know, Christine, this is an extremely complex situation that previous administrations have attempted and failed at.

[05:40:01] So, many experts believe that Kim Jong Un will never fully give up his nuclear weapons program because it is so vital to the regime and also to his leadership, Christine.

ROMANS: It certainly looks like a longer process now -- the North Korea issue -- but it is -- we are further along than we've been in years, no question.

Anna Coren in Tokyo, thank you.

BRIGGS: All right. It appears Rudy Giuliani's act is starting to wear a bit thin with President Trump's inner circle the day after the president's lawyer said this.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, ATTORNEY TO PRESIDENT DONALD TRUMP: They insulted the vice president. They insulted the -- his national security adviser. He said we're not going to have a summit under those circumstances.

Well, Kim Jong Un got back on his hands and knees and begged for it.

(END VIDEO CLIP)

BRIGGS: Secretary of State Mike Pompeo responding this way.

(BEGIN VIDEO CLIP)

POMPEO: We're focused on the important things. I know Rudy -- Rudy doesn't speak for the administration when it comes to this negotiation and this set of issues.

(END VIDEO CLIP)

ROMANS: Giuliani, as you recall, also weighed in on the Stormy Daniels saga and whether Melania Trump believes her husband about the alleged affair.

(BEGIN VIDEO CLIP)

GIULIANI: She believes in her husband. She knows it's not true. I don't even think there's a slight suspicion that it's true.

(END VIDEO CLIP)

ROMANS: Well then, this yesterday. The first lady's spokeswoman delivered a sharp rebuke to Giuliani. She said, "I don't believe Mrs. Trump has ever discussed her thoughts on anything with Mr. Giuliani."

The first lady has never publicly addressed the Stormy Daniels story.

Asked for a response, Giuliani tells CNN no, he never interviewed Melania Trump about Stormy Daniels.

Clearly, the White House -- the first lady's office not happy that he's speaking for her. He doesn't speak for her.

BRIGGS: Mitt Romney has called the president a fake and a con man but the Republican Senate candidate in Utah believes President Trump will win a second term. He made his prediction at a Utah retreat attended by business and political leaders.

Mr. Romney saying, quote, "I think our Democrat friends are likely to nominate someone who's really out of the mainstream of American thought and will make it easier for a president who's presiding over a growing economy."

Since launching his Utah Senate bid earlier this year, Romney has mostly praised the president's actions but lamenting that bombastic style.

Hard to argue with what Romney is saying given the options right now for Democrats. Still a long way to go, though.

ROMANS: The economy's strong.

BRIGGS: Right.

ROMANS: He's right, the economy is strong. He's a businessman.

All right.

Uber wants to know if you're drunk --

BRIGGS: Yes.

ROMANS: -- when you're looking for a ride and are turning to artificial intelligence for an answer. "CNN Money," next.

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[05:46:22] ROMANS: Let's get a check on "CNN Money" this morning.

The Trump administration will not defend key provisions of Obamacare in court, a dramatic break in tradition. The Justice Department rarely declines to argue in favor of existing law but will not defend the Affordable Care Act as 20 GOP-led states challenge its constitutionality.

The case is centered on the individual mandate requiring Americans to have health insurance or pay a penalty. The tax bill repealed it, so the suit argues that if the individual mandate is unconstitutional so are other parts of the law.

And the Justice Department agrees, so says Attorney General Jeff Sessions in a letter, quote, "with the approval of the President of the United States."

The individual mandate prods younger and healthier people to sign up for Obamacare. But with only older and younger Americans on the exchange the premiums rise, and they are by double-digits next year.

Insurers in several states have requested large rate hikes -- 24 percent, on average, in New York; 19 percent in Washington; 15 percent in Maryland.

Global stocks down right now. A 6-day rally in tech ended, pushing the Nasdaq and the S&P 500 down. But the Dow closed up, boosted by McDonald's. McDonald's up four percent on news it will trim its corporate staff.

Energy stocks rose thanks to a jump in oil prices. U.S. crude up two percent on concerns of tightening supply. Exports from Venezuela fell and there's concern major oil-producing countries will not follow through on that promise they made to boost production. All right. Overall, Americans have never been richer. Household wealth topped $100 trillion for the first time in history, mainly due to rising home prices. That's a roadblock, of course, to homebuyers -- you know, prices are high -- but it's great for homeowners.

Home equity jumped 13 percent during the first three months of the year, offsetting the impact of a slight decline in the stock market.

One hundred trillion dollars is the total and it doesn't measure distribution. The wealthiest Americans receive the biggest share of gains in real estate and stocks.

Dave's favorite business story of the morning. Uber wants to know if you're drunk when looking for a ride and it's turning to artificial intelligence for the answer.

Uber is patenting an algorithm to identify drunk passengers. It's looking at typos, how precisely you click, your walking speed, the time of day. It's going to use that to better tailor rides either by warning drivers of a drunk passenger coming --

BRIGGS: Yes.

ROMANS: -- or matching riders with drivers with relevant experience or training.

Uber did not respond to our request for comment.

BRIGGS: Look, I just thought that was the whole point of Uber. Maybe I missed something but they spent millions of dollars on a -- research and technology.

ROMANS: But they also --

BRIGGS: If it's 1:00 a.m. on a Saturday night that person is probably drunk.

ROMANS: It also has safety ramifications, too, because there have been accusations against -- you know, riders who have said they've been sexually assaulted. You know, they need to know --

BRIGGS: That is -- that took a hard turn.

ROMANS: They know what -- need to know what's going on there.

BRIGGS: If I'm calling after midnight, you guessed it.

ROMANS: All right.

BRIGGS: All right.

"NEW DAY" is about 10 minutes away. John Berman joins us.

ROMANS: Hi, John.

BRIGGS: John Berman, if you sent your assistant Ali out for lotion, like EPA administrator Scott Pruitt did, she would say what?

JOHN BERMAN, CNN ANCHOR: How many stories do you know where you have lotion, a mattress from the Trump hotel, and Chick-fil-A, and have it not be some sort of fetishism story?

BRIGGS: "HANGOVER" five?

BERMAN: We're talking about -- we're talking about a member of the president's cabinet here and the word lotion, right? I mean, what do you say -- like, put the lotion in the basket so we can protect the environment.

No, look, we're talking about Scott Pruitt and I'm laughing. It is no laughing matter because --

BRIGGS: You have to.

BERMAN: -- you have a member of the president's cabinet who every day, there is this new claim -- this new allegation of some kind of impropriety that has nothing to do with the execution of his job and everything to do with how he runs his office.

[05:50:07] You know, I guess dry skin can be a security risk, right?

BRIGGS: Yes.

BERMAN: I mean, cracked skin is definitely a security risk and chafed -- I mean, you've got to have like a situation room, right? You've got to go to the situation room for that.

I don't know. You set me off about something the other day that I obviously --

BRIGGS: Well, you can buy it online, John. It takes two clicks. I found out earlier. It's got jasmine scents to it and you can buy it online --

BERMAN: Oh.

BRIGGS: -- in about two seconds.

It used to be people -- again, Scott Pruitt -- there's a story in "The Washington Post" that he sent his security detail to get him a particular kind of lotion that he likes. His security detail, lotion, member of the president's cabinet.

ROMANS: Taxpayers, taxpayers.

BRIGGS: A lot of other stuff to get to on "NEW DAY."

BERMAN: Yes.

BRIGGS: I know Richard Haass is joining the program --

BERMAN: Yes, yes, yes.

BRIGGS: -- to preview the G7.

BERMAN: Then there's the North Korea -- there's the North Korean summit which I do not believe will cover lotion --

BRIGGS: No.

BERMAN: -- in any kind of way.

ROMANS: All right. John Berman is not allowed to say the word lotion anymore this morning. I'm now incredibly freaked out. Berman, thank you.

BERMAN: Lotion.

BRIGGS: (INAUDIBLE).

BERMAN: Smooth skin, soft skin.

BRIGGS: Richard Haass, Mike Smith --

ROMANS: Go away.

BRIGGS: -- the jockey for Justify.

ROMANS: Go away.

BERMAN: Smooth and soft skin.

ROMANS: Go away. Come on, guys, go -- bye. Goodbye, John.

BRIGGS: Thank you, John. OK.

Ahead, a new discovery adding to the speculation of life on Mars. A 3-billion-year-old stone holds the latest clue.

(COMMERCIAL BREAK)

[05:55:25] ROMANS: Alarming new numbers from the CDC. Suicide rates increased by 25 percent across the U.S. between 1999 and 2016. More than half of those who took their own life had not been diagnosed with a mental health issue.

Numbers went up in every state except Nevada. The increases range from six percent in Delaware to nearly 58 percent in North Dakota.

Health experts say not every suicide is preventable but many are. There are steps to help, like a conversation, and a follow-up if you see warning signs, like a changed mood or behavior or alarming social media posts.

BRIGGS: A New York City man facing deportation after trying to deliver a pizza to the Fort Hamilton military base in Brooklyn. Pablo Villavicencio showed his city I.D. card to the guard last week as he had done several times before. But this time, the undocumented immigrant from Ecuador was asked to get a daily visitor's pass. Military and ICE officials claim Villavicencio wound up signing a waiver permitting a background check which revealed an active warrant for deportation.

ROMANS: Villavicencio tells the "New York Post" that's a lie. He insists he did not sign any waiver.

New York Gov. Andrew Cuomo says the state has secured -- has secured pro bono legal counsel for Villavicencio.

BRIGGS: All right.

Facebook facing another privacy problem. Fourteen million users around the world had their default sharing setting set to public. The bug affected new posts from May 18th to May 22nd. Facebook says the glitch came during the testing of a new feature.

ROMANS: After its discovery, Facebook went back and changed the setting for all posts by those users during that timeframe to private. Affected users are now getting a notification on the app or on the Website.

Facebook says the notification signals a new proactive transparent approach to problems going forward. Facebook users say how about no problems going forward in the first place?

A new progress in the search for signs of life on Mars. NASA says organic matter was found in soil from a 3-billion-year-old mudstone found by the Curiosity rover. Organic compounds like the ones found are the building blocks of life, although they can also exist with it.

Curiosity rover also detected methane in the Martian atmosphere. It is the simplest organic substance also found in other places in our solar system that could support life.

BRIGGS: OK. For the first time in their 44-year history, the Washington Capitals are Stanley Cup champions.

The Caps' Lars Eller scored the game-winner with seven and a half minutes left in the third. They win the series in the five games.

And a remarkable run for the Las Vegas Golden Knights in their first year of their existence.

No player, though, savoring this victory more than the superstar -- the captain, Alex Ovechkin, the great eight. He won the Conn Smythe trophy as playoff MVP.

And as hockey traditions hold, the first to hoist the cup, giving it a kiss, taking it around the ice for a celebratory skate in front of the Vegas fans who were very happy to see him hold that cup.

The celebration was on in the nation's capital. Check out D.C. First championship there since 1992 when the Redskins won the Super Bowl. And now, it looks like Cincinnati the major -- the longest major championship drought since 1990. ROMANS: I've got to say --

BRIGGS: Congrats to the Caps.

ROMANS: -- you've got to give it up for the Golden Knights, though. The first -- I mean --

BRIGGS: The first year in their franchise.

ROMANS: Unbelievable. And that pre-game ceremony, that was awesome.

BRIGGS: The pre-game ceremony -- they retired number 58 after the mass shooting there in Las Vegas --

ROMANS: Yes.

BRIGGS: -- but the nation's capital has reason to celebrate this morning.

ROMANS: All right. Thanks for joining us. I'm Christine Romans.

BRIGGS: As do we because it's Friday. I'm Dave Briggs.

ROMANS: It is Friday.

BRIGGS: "NEW DAY" starts right now. Have a wonderful weekend, everybody.

(BEGIN VIDEO CLIP)

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: He's walking into the lion's den. This is a president who's going to be isolated by our allies.

LARRY KUDLOW, DIRECTOR, U.S. NATIONAL ECONOMIC COUNCIL: We're talking everything through. I'm always the optimist.

UNIDENTIFIED MALE: Macron is now speaking to Trump via Twitter. He's dragged Macron down to his level.

TRUMP: I don't think I have to prepare very much. It's about attitude.

UNIDENTIFIED MALE: It's a complete mystery to me why he has so much confidence in his own ability.

POMPEO: I am very confident the president will be fully prepared.

KIM KARDASHIAN, REALITY STAR: He was sympathetic to her. He said this is the right thing to do.

ALICE MARIE JOHNSON, PARDONED BY PRESIDENT DONALD TRUMP: I love him and I'll never forget this.

UNIDENTIFIED MALE: There is no process here. We're living in an ongoing reality show and this now is a celebrity pardon. (END VIDEO CLIP)

ANNOUNCER: This is NEW DAY with Alisyn Camerota and John Berman.

ALISYN CAMEROTA, CNN ANCHOR: We want to welcome our viewers in the United States and around the world. This is NEW DAY. It is Friday, June eighth, 6:00 here in New York.

It's been a long news week.

BERMAN: It has, and there are some big meetings in store for the president.

CAMEROTA: OK, so let's get right to it. Here's our "Starting Line."