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EARLY START

Colonial Pipeline Launches Restart But Return To Normal Will Take Days; House GOP Ousts Cheney For Calling Out Trump's Election Lies; Nepal Urges Everest Climbers To Return Oxygen Tanks Amid COVID Crisis. Aired 5:30-6a ET

Aired May 13, 2021 - 05:30   ET

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


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[05:30:47]

LAURA JARRETT, CNN ANCHOR: Good morning, everyone, this is EARLY START. I'm Laura Jarrett.

CHRISTINE ROMANS, CNN ANCHOR: And I'm Christine Romans. It is Thursday and 30 minutes exactly past the hour.

And we begin with the gas problem in the southeast -- that Colonial pipeline. It's on the very of a restart.

It can't happen soon enough for drivers along the east coast. Panic buying has caused a huge gas crunch. The price of gas reached $3.00 a gallon for the first time in six years. That's the nationwide number.

The pipeline's operators warn it will take days to return to normal after a six-day shutdown caused by a ransomware attack.

JARRETT: Yes, the hackers demanded nearly $5 million in Bitcoin payments but it looks like Colonial won't have to pay it. The company is working with U.S. government officials who have managed to retrieve the most important stolen data and restore its systems.

President Biden calling for increased investment in education on cybersecurity after this.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: The cybersecurity piece is one I think you're going to see where we need a significantly larger number of experts in the area of cybersecurity working for private companies, as well as private companies being willing to share data as to what -- how they're protecting themselves.

(END VIDEO CLIP)

ROMANS: For the moment and maybe the next few days, you still have this gas crunch in the northeast. In North Carolina, nearly three- quarters of gas stations are completely out. The city of Charlotte has launched a free mass transit service. EARLY START has these coverages covered all along the east coast.

(BEGIN VIDEOTAPE)

DIANNE GALLAGHER, CNN NATIONAL CORRESPONDENT (on camera): I'm Dianne Gallagher in Charlotte.

In the state of North Carolina, it seems like there's two kinds of gas stations -- those that have really long lines, like you see here behind me, and those that have no gas at all.

Colonial Pipeline says it has restarted that critical pipeline but it may take several days for things to get back to normal. The governor of North Carolina asking people please -- to only get gas if you need it, saying it's the public panic that has fueled all of these shortages.

JOSH CAMPBELL, CNN CORRESPONDENT (on camera): I'm Josh Campbell.

We're learning new details about the group allegedly behind this massive cyberattack of Colonial Pipeline that has disrupted fuel consumption up and down the east coast.

What we're told is that DarkSide ransomware is used by what are called affiliates to extort victims. Essentially, the developer will create the ransomware, and then these other outside affiliates will then deploy it against victims. We're told that this affiliate that hacked Colonial Pipeline was likely Russian, sources tell CNN. This ransomware has impacted victims, we're told, in more than 15 countries.

Now, the outside cybersecurity firm FireEye Mandiant, which has been hired by Colonial Pipeline to try to remediate the company after this attack, is out with their own new analytical report on this ransomware group, writing that most of the victim organizations were based in the United States and span across multiple sectors, including financial services, legal, manufacturing, professional services, retail, and technology.

Clearly, a widespread threat here across multiple industries, and that is something that has law enforcement alarmed as they wait to see who will be the next victim of these attackers.

NICK VALENCIA, CNN CORRESPONDENT (on camera): I'm Nick Valencia in Brookhaven, Georgia where panic buying for gas is in full swing. As residents here worry about the shortage of gas, their rush to the pump may very well be contributing to that shortage.

Gas stations in and around the Metro Atlanta area are either reporting a short supply of gas or are reporting running out of gas altogether. How much longer will this rush to pump last? Well, that all depends on what happens next with the Colonial Pipeline.

MATT EGAN, CNN BUSINESS LEAD WRITER (on camera): I'm Matt Egan. The oil industry is begging Americans not to hoard gasoline. Oil executives are warning that panic buying is worsening the supply crunch caused by the shutdown of the Colonial Pipeline. Some gas stations have run through days' worth of inventory in mere hours.

The oil industry is applauding President Biden for some of the steps he's taken to address the supply situation but they also want him to do more. Executives are calling on the White House to grant Jones Act waivers, a step that would allow foreign ships to send badly-needed fuel to the east coast.

PETE MUNTEAN, CNN AVIATION CORRESPONDENT (on camera): Folks who are coming here tell me that this is one of the few stations nearby here in Alexandria, Virginia that does actually have gas. They're waiting in a relatively long line. It stretches about a block around here on all sides. We have not seen people filling up container after container, although there are images of that coming out of Alabama.

[05:35:07]

Even the Consumer Product Safety Commission has had to tell people not to fill up plastic bags with gasoline. They say that would just be too dangerous. It even earned a warning from the White House -- Christine, Laura.

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ROMANS: Oh my gosh. What I have found is that every time you say don't hoard gas it just makes people hoard gas.

All right. Hackers held one of America's most important pipelines hostage, highlighting concerns of cyberattacks on an even bigger target, the U.S. financial industry. You know, banks and global stock exchanges have been the target of cyberattacks in recent years. In fact, Federal Reserve chair Jerome Powell, last month, called cyberattacks the number one threat to the financial system.

The NYSE and the Nasdaq both cite cyberattacks as a major risk. It's why banks and exchanges have some of the most robust cyber defenses in the private sector, spending billions every year, mounting stronger security than pipelines and other aging physical infrastructure.

President Biden signed an executive order Wednesday to better protect the nation from these attacks. It requires higher security standards for software used by the U.S. government, including additional encryption. Now the order only applies to federal contractors, right, but officials hope the government's vast purchasing power will spur other companies to follow suit and protect themselves.

JARRETT: Has the GOP opened Pandora's Box on elections? That's the question hanging over the party after House members ousted Congresswoman Liz Cheney from their leadership for telling the truth about the big lie. She easily survived a leadership change earlier this year but now out of a job.

She says current leader Kevin McCarthy isn't stepping up. (BEGIN VIDEO CLIP)

REP. LIZ CHENEY (R-WY): I think that he is not leading with principle right now and I think that it is -- it's sad and I think it's dangerous.

SAVANNAH GUTHRIE, ANCHOR, NBC NEWS "TODAY": Are you the leader of the opposition in exile right now in the Republican Party?

CHENEY: I intend to be the leader -- one of the leaders in a fight to help to restore our party and a fight to bring our party back to substance and principles. And in a fight to make clear that we won't participate in the really dangerous effort that's underway.

(END VIDEO CLIP)

ROMANS: Now, others before Cheney have tried to turn that party tide, like former governor John Kasich, former senators Jeff Flake and Bob Corker, all essentially driven out of politics.

Several states have been passing voting restrictions and launching faux investigations centered on the lie that the election was stolen.

JARRETT: A near-catastrophic example of why President Biden is pushing for an infrastructure overhaul. A major crack has been discovered in the Hernando de Soto bridge, carrying interstate 40 over the Mississippi River. It's now shut down for emergency repairs, which could last months.

Boat traffic under the bridge also closed. At least 24 vessels and more than 300 barges waiting to travel the Lower Mississippi River.

President Biden, meantime, will meet with Republicans today after making little progress Wednesday with top congressional leaders.

CNN's Daniella Diaz is live on Capitol Hill with more. Daniella, this bridge crack just such a prime example of why the president is so focused on this issue.

DANIELLA DIAZ, CNN CONGRESSIONAL REPORTER: Yes, and it's infrastructure week all over again, Laura. Look, Biden is really focused on trying to negotiate a deal this week with Republican and Democratic leaders on an infrastructure proposal that could pass through the Senate.

You know, you mentioned that a group of Republican senators are going to the White House today and that group is going to be led by Sen. Shelley Moore Capito of West Virginia -- the other West Virginia senator we talk about all the time. You know, she already proposed a counteroffer to President Joe Biden on an infrastructure proposal with a smaller price tag and a narrower focus. And so they're planning to meet with Biden today to discuss this issue.

Look, the Biden administration is really intensifying these discussions this week in an effort to try to pass a package. But look, there's a lot of disagreements between what Biden wants and what can actually pass through the Senate with Republicans signing on to any measure.

Biden, of course, has mentioned that he is totally open with having transportation, rails, roads, bridges included in the package but wants to see more in an infrastructure package that Republicans may not want. And he is open to raising taxes on this issue, which Mitch McConnell and Kevin McCarthy, who visited the White House yesterday, said they are not open to at all. That is a red line for them.

So take a listen to what Biden said in an interview yesterday on MSNBC where he discussed what he'd like to see in an infrastructure package.

(BEGIN VIDEO CLIP)

BIDEN: I want to get a bipartisan deal on as much as we can get a bipartisan deal on, and that means roads, bridges, broadband -- all infrastructure.

But I'm not giving up on the fact that we have two million women who are not able to go back to work because all the daycare centers are closed -- they're out of business and so they can't go back to work.

[05:40:02]

I'm not going to give up on a whole range of things that go to the question of productivity -- of increasing jobs, increasing employment, increasing revenues. I'm not willing to give up on that so we're going to fight those out.

So I want to know what can we agree on and let's see if we can get an agreement and kickstart this, and then fight over what's left. We'll see if I can get it done without Republicans if need be.

(END VIDEO CLIP)

DIAZ: Laura, and it's not just Republicans that Biden needs to sign onto any legislation he wants to pass through the Senate. There's some moderate Democrats that he needs to support any proposal he wants. And that includes, of course, Sens. Joe Manchin, Kyrsten Sinema -- the usual names we mention all the time. They actually met with Biden this week to discuss infrastructure, so this White House is really making this effort to see if they can reach a deal -- Laura.

JARRETT: Yes. He's got to get his own party on board as usual.

Daniella, thanks so much.

ROMANS: All right, a big development in the sentencing of former Minneapolis police officer Derek Chauvin. The judge now agrees with prosecutors, saying aggravating factors may increase his prison sentence for killing George Floyd.

Those factors: Chauvin abused his position of trust and authority as a police officer. Kneeling on Floyd's neck as Chauvin did for more than nine minutes was an act of particular cruelty. He committed the crime in front of children. And he committed the crime with the active participation of three other officers. Chauvin was convicted of two counts of murder and one count of manslaughter.

JARRETT: Ohio going next-level with its vaccine incentives. Governor Mike DeWine announcing statewide lottery drawings worth $1 million to adults who have been vaccinated. The drawings will be held for five straight weeks beginning May 26th.

And, Ohio residents 12 and up can sign up for five separate scholarship drawings with the winners receiving a four-year free ride to a state university. That is very cool.

We'll be right back.

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[05:46:01]

JARRETT: Welcome back.

Three L.A. County firefighters accused of taking and sharing graphic photos of the Kobe Bryant crash site could soon be fired. According to court documents in the suit filed by Bryant's widow against L.A. County, two firefighters were sent an intent to discharge letter and a third received an intent to suspend notice following an internal investigation.

Bryant, his daughter, and seven others were killed in a helicopter crash last year.

ROMANS: All right, to walk away from this, simply a miracle. These images show the aftermath of two small planes colliding in midair. This happened Wednesday near Denver. Both planes were trying to land.

One of the planes was carrying two people. It deployed a parachute and slowly drifted to the ground. The other, with one person on board, was able to land at the airport. All three people unharmed.

JARRETT: Just amazing.

Wisconsin lawmakers advancing a bill that would require the National Anthem be played before all publicly-funded sporting events. That means everything from a bar league softball game to the Packers at Lambeau Field.

The Republican-led State Assembly passed the measure Wednesday, sending it to the Senate. Wisconsin Democrats have dismissed the bill as a political stunt that's essentially unworkable.

ROMANS: All right, to Nepal now, which is running desperately low on oxygen. As coronavirus cases spike, the government is asking organizes of Mount Everest hikes to return empty oxygen canisters.

CNN's Anna Coren joins us live with more. They need those canisters and climbers have them. ANNA COREN, CNN CORRESPONDENT: They need those canisters but, Christine, this is a country that desperately needs oxygen. So, yes, the government ordered for climbers and tour operators to return the unused or used oxygen canisters so that it can be used for emergency use.

But really, this is a country - an impoverished country that needs international aid. The Chinese have sent in 20,000 oxygen cylinders and 100 ventilators. It is a drop in the ocean.

You know, Nepal has a positivity rate of 50 percent. It's one of the highest in the world. So the scenes that we've been seeing in India are going to be repeated in Nepal. I mean, it's playing out already.

A lot of focus is on Mount Everest and that basecamp. And we've been speaking to climbers throughout the day, Christine, who say that the Nepal government is misleading the world about the COVID situation at Everest basecamp. It maintains that there are no COVID cases on the mountain. The climbers we've spoken to say that there are over 100 cases and have been for several weeks now. They've been evacuated from the mountain.

You know, the government has issued over 400 permits. That's a major windfall. And this is a country that desperately needs money. But these climbers say the government is putting financial gain over public health.

ROMANS: All right. Anna Coren for us in Hong Kong. Thank you -- Laura.

JARRETT: Actress Phylicia Rashad taking on a new role at her alma mater. She's now been appointed Dean of Howard University's recently reestablished College of Fine Arts.

Best known for her role on "THE COSBY SHOW," Rashad graduated magna cum laude from Howard in 1970. She served as a guest lecturer and adjunct faculty member at Howard and many other schools.

ROMANS: A university president resigning after admitting to plagiarizing in his commencement speech. University of South Carolina president Bob Caslen's words were nearly identical to a speech by the former head of U.S. Special Operations, Admiral William McRaven. Listen to now and then.

(BEGIN VIDEO CLIP)

BOB CASLEN, PRESIDENT, UNIVERSITY OF SOUTH CAROLINA: Know that life is not fair and if you're like me you'll fail often.

ADMIRAL WILLIAM MCRAVEN, FORMER HEAD OF U.S. SPECIAL FORCES: Know that life is not fair and that you will fail often.

CASLEN: But if take some risks, step up when times are toughest, face down the cowardly bullies, and lift up the downtrodden, and never, never give up. MCRAVEN: But if you take some risks, step up when the times are the toughest, face down the bullies, lift up the downtrodden, and never, ever give up.

CASLEN: If you do those things, the next generation and the generations to follow will live in a world far better than the one we have today.

[05:50:04]

MCRAVEN: If you do these things, the next generation and the generations that follow will live in a world far better than the one we have today.

(END VIDEO CLIP)

ROMANS: Oh. University President Caslen said he is truly sorry and takes full responsibility.

All right, where is the tiger? A Bengal tiger is still missing in Houston after vanishing during a police standoff with an accused murder.

Victor Cuevas took off in a Jeep with the tiger in tow Sunday. He was arrested Monday and released on bond yesterday. The tiger is still on the lam.

JARRETT: Someone knows where that tiger is.

All right. First, it was catsup, now it's Chick-fil-A sauce. The chain says in response to industry-wide supply chain issues it's only giving customers one dipping sauce per item at some of its restaurants. It says it's working to fix the supply problems as soon as possible.

Major chains are also facing a chicken shortage. However, Chick-fil-A says the company's supply has not been affected.

ROMANS: All right, let's take a look at markets around the world. You can see that European shares have opened lower. Asian shares have closed lower. They're following through on that big rout we saw on Wall Street yesterday. Futures in the U.S., right now, also leaning down -- a hangover, really, after the worst day in a month -- in months for stocks.

Inflation was the worry there. The Dow fell nearly two percent, the worst day since January, spooked by a jump in consumer prices. What Americans paid in April rose 4.2 percent from a year ago. That's the hottest inflation since the financial crisis. Investors worry that rising prices will force the Federal Reserve to raise interest rates.

We're going to get another look at inflation in just a few hours -- the release of April's producer price data. We'll see how those raw material costs are feeding into what producers are paying for goods.

Good news though for retirement folks. Account balances are at record highs. Solid savings and big stock market gains pushed the average to record levels last quarter.

And according to Fidelity, balances are up more than 30 percent from last year. And get this -- there are a record number of Americans who have $1 million in savings -- those 401(k) millionaires.

This comes as more Americans retire. Census data shows the retirement rate rose during the pandemic, reversing a decades' long trend. Two reasons: job losses prompted early retirement. Also, home prices and stock market values rose.

That put owners of both assets in a better position to retire. It also means it might be harder to get those people back into the workforce if we need to grow the workforce to grow the economy.

Bitcoin's biggest cheerleader reversing course. Tesla CEO Elon Musk says Tesla will stop accepting the cryptocurrency. Bitcoin's value immediately fell 12 percent, wiping hundreds of billions of dollars off the cryptocurrency market.

On Twitter, Musk cited the high environmental cost, noting the increasing amount of fossil fuels that Bitcoin uses. Bitcoin is created -- created using lots of energy-burning computers. Previously, Musk had been hyping Bitcoin for months, including disclosing that Tesla invested $1.5 billion in Bitcoin.

JARRETT: Ellen DeGeneres hanging up her dancing shoes. The talk show host announced "THE ELLEN SHOW" will end next year after 19 years on- air. Her reason, she says it's just not a challenge anymore.

Ellen faced scrutiny last summer over allegations of a toxic work environment.

"THE ELLEN SHOW" has won 64 Daytime Emmys.

(BEGIN VIDEO CLIP)

JAY-Z, RAPPER: "Empire State of Mind."

(END VIDEO CLIP)

ROMANS: Now that's such a great song. Jay-Z now a first-ballot Hall of Famer. He's one of six new inductees into the Rock & Roll Hall of Fame.

(BEGIN VIDEO CLIP)

FOO-FIGHTERS, ROCK BAND: Singing "Best of You."

(END VIDEO CLIP)

ROMANS: The Foo-Fighters also part of the class of 2021. Frontman Dave Grohl making it in for a second time -- well-deserved.

Two iconic female artists, Tina Turner and Carole King, are now two- time inductees as well. The Go-Go's were also inducted on their first try. And Todd Rundgren, a singer, songwriter, and producer, rounds out the inductees.

JARRETT: So, Jay-Z is in, but what about Beyonce?

ROMANS: I don't know, actually.

JARRETT: I think she might actually be eligible next year so --

ROMANS: Maybe next year.

JARRETT: -- hopefully, she'll get it.

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

JARRETT: I'm Laura Jarrett. "NEW DAY" is next.

(BEGIN VIDEO CLIP)

FOO-FIGHTERS: Singing "Everlong."

(END VIDEO CLIP)

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[05:59:04]

JOHN BERMAN, CNN ANCHOR: I'm John Berman alongside Brianna Keilar.

On this new day, harrowing new video showing the body camera footage of a Capitol police officer being brutally assaulted during the insurrection. One rioter saying, quote, "I got one."

And it comes as Republican lawmakers try to whitewash what happened. Shocking denials of what we see with our own eyes. Firing those who refuse to lie so they can lie with abandon.

BRIANNA KEILAR, CNN ANCHOR: And gas stations up and down the east coast running on empty as Americans panic-buy fuel after a cyberattack shuts down a pipeline.

And new this morning, we are learning of an aggressive confrontation between Marjorie Taylor Greene and Alexandria Ocasio-Cortez at the Capitol, an incident that has led to security concerns.

BERMAN: Good morning to our viewers here in the United States and all around the world. It is Thursday, May 13th.