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EARLY START

Ceasefire In Gaza Holds Overnight After 11 Days Of Carnage; North Korea Tops Agenda At Biden-Moon Summit; Prince William: BBC "Deceitful" With Diana Interview In 1995. Aired 5:30-6a ET

Aired May 21, 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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[05:30:50]

CHRISTINE ROMANS, CNN ANCHOR: Good Friday morning. This is EARLY START. I'm Christine Romans.

LAURA JARRETT, CNN ANCHOR: Yes, you made it to Friday. I'm Laura Jarrett. It's 30 minutes past the hour here in New York.

After 11 days of carnage, a ceasefire between Israel and Hamas is holding for now. Plenty of questions going forward though, like how will an Israeli court rule on evictions in East Jerusalem that lit the spark.

ROMANS: Getting to his point involved a week of behind-the-scenes pressure on Prime Minister Benjamin Netanyahu from President Biden.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: I also emphasized what I've said through this conflict -- the United States fully supports Israel's right to defend itself against indiscriminate rocket attacks from Hamas and other Gaza-based terrorist groups that have taken the lives of innocent civilians in Israel.

These hostilities have resulted in the tragic deaths of so many civilians, including children. And I send my sincere condolences to all the families, Israeli and Palestinian, who have lost loved ones, and my hope for a full recovery for the wounded.

(END VIDEO CLIP)

ROMANS: President Biden is vowing to provide humanitarian assistance to the people of Gaza in a way that does not permit Hamas to restock its military arsenal.

Secretary of State Tony Blinken plans to travel to the Middle East in the coming days to meet with Israeli and Palestinian officials.

Tensions in the Middle East could be contributing to a rise in anti- Semitic attacks here in the U.S. The Los Angeles Police Department a possible hate crime in Hollywood

where Jewish people dining outdoors were attacked by a group of pro- Palestinian men driving by. Five victims suffered minor injuries.

And the NYPD hate crime task force is investigating an attack against a Jewish man in Times Square last night. There were also clashes between pro-Israeli and pro-Palestinian protesters in Midtown -- Midtown Manhattan after that ceasefire was announced.

JARRETT: Today, President Biden will shift his focus from the Middle East to another international security challenge, North Korea.

CNN's Jasmine Wright is live at the White House with more on this. Jasmine, good morning to you.

So, the second in-person meeting with a foreign leader for the president today. What do you expect to see?

JASMINE WRIGHT, CNN WHITE HOUSE REPORTER: That's right, Laura. North Korea will be a major topic as President Biden welcomes South Korean President Moon Jae-in to the White House. You're right -- it's his second time with the foreign leader in the White House but notably, it will be -- it's expected to be the first time that both leaders are maskless, a sign that things are returning back to normal in this country.

And it also highlights the importance that the Biden administration is putting on the Indio-Pacific region. We know that President Biden's first foreign leader to come to the White House was that of Japan.

Now, on North Korea, officials are expected to lay out a new policy towards the country, something that President Biden himself has labeled as a top foreign policy challenge, today with President Moon.

Officials, when previewing it, said that they were -- they talked to former Trump administration officials. They looked toward past failures in creating this new policy that is not going to be about grand bargains or strategic patience. They say it's going to be about a more strategic approach that is going towards, right, the goal of denuclearization. But before they get there they are open to possibilities for diplomatic relations.

And, of course, it also is going to focus on trade. They expect some pronouncements with 5G technology, batteries, semiconductors. We know that the U.S. and China are South Korea's top trade partners. And, of course, we know that President Biden is always looking towards competition with China in his policy proposals. So I'm sure, Laura, that this will be no different.

And lastly, both President Biden and President Moon will honor a former -- excuse me, an American veteran of the Korean War with a Medal of Honor, the first time that a foreign leader participates in that ceremony.

JARRETT: That's notable.

All right, Jasmine, thanks so much.

ROMANS: OK, the reopening is here, the economy is booming. Expect the best economy growth since Reagan was president. But in that red hot economy, higher prices and supply shortages are everywhere.

[05:35:02]

Inflation is what worries Honeywell CEO Darius Adamczyk.

(BEGIN VIDEO CLIP)

DARIUS ADAMCZYK, CEO, HONEYWELL: The economy is doing a little bit better than people expect. It is -- it is actually humming along.

I do believe we have to be careful about unintended consequences, which will be inflation. We are seeing fairly substantial inflation. It's definitely here and it's probably a bit more pronounced than most people think.

(END VIDEO CLIP)

ROMANS: Yes, he was speaking with my colleague -- my colleague Matt Egan.

You know, Honeywell is the world's largest industrial company by market value so what he says really holds a lot of water here. It makes everything from N-95 masks and jet engines to quantum computers. Adamczyk said Honeywell is struggling to keep up with pricing pressure on everything from labor to steel.

Now, Fed officials -- they do expect prices will rise this summer but they say those increases will likely be temporary as these supply kinks work their way out of the system.

Investors have been worried about price increases for months. Consumer prices in April rose 4.2 percent from a year ago. That's the fastest inflation since the financial crisis. That only increased concerns the Fed will have to act sooner to stop the economy from overheating.

JARRETT: Yes, those price increases are already here.

ROMANS: Yes.

JARRETT: So big reopenings here in the U.S. and big reopenings in Europe as well this week. New coronavirus cases at their lowest point in months there. Travel also coming back in a way, just in time for the summer tourism season.

Scott McLean is live for us in London. Scott, so what are some of the biggest signs? You live there -- what are some of the biggest signs that normal days are ahead?

SCOTT MCLEAN, CNN INTERNATIONAL CORRESPONDENT: Yes, things are definitely looking up in many parts of Europe, Laura. Cases are dropping, the pace of vaccinations is really picking, and things are on track for what might be almost a normal summer. Case in point, in France, for instance, the cafes are reopening. The Eiffel Tower is set to reopen in July and Americans might actually be able to visit it.

The E.U. has just adopted recommendations for its 27-member states to open their borders to travelers from some countries, provided that they are fully vaccinated. Now, that recommendation is not binding and so it's possible some countries may not actually open their doors to vaccinated Americans. And so, buyer beware on that front.

Within the block, the E.U. has just approved a vaccine passport scheme set to take effect in July to make travel within countries easier.

Here in the U.K. though, perhaps there's not the same kind of optimism and that's because cases of the India variant, which spreads faster than the dominant U.K. variant, are up 160 percent in just the past week.

And Laura, if you are so keen on a vacation to the U.K. this summer -- well, I wouldn't count on it. With very few exceptions, Americans coming to this country for vacation will have to quarantine for a minimum five days, which would require four tests, and that is very unlikely to change anytime soon.

JARRETT: All right, thanks so much, Scott -- appreciate it.

ROMANS: It's a much grimmer story in South America, especially Latin America, still under siege. Argentina's president just announced the nation will enter another lockdown at midnight.

Matt Rivers reports from Mexico City.

(BEGIN VIDEOTAPE)

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT (on camera): Christine and Laura, two big coronavirus stories out of Latin America that we are watching.

First, down in Argentina where the president of that country is set to impose new restrictions as soon as this weekend after several recent days of new records set for infections in a single day. Earlier in this pandemic, Argentina imposed some of the harshest lockdowns in all of South America.

And over in Brazil, for the first time, a coronavirus variant first detected in India has now been detected in Brazil after six crew members of a ship traveling from South Africa arrived in that country.

And amidst all of this, there continues to be a very slow rollout of vaccines all across this region. We heard earlier this week from the Pan American Health Organization who said that in all of Latin America just three percent of the people in this part of the world have been fully vaccinated -- Christine, Laura.

(END VIDEOTAPE)

JARRETT: Matt Rivers, thank you so much for that report.

Meanwhile, in Japan, the vaccine rollout is still moving at a snail's pace while questions mount about holding the Summer Olympics there.

CNN's Blake Essig is live in Tokyo. Blake, the Games are just two months away, so what is the plan to give people confidence that these games can go forward?

BLAKE ESSIG, CNN INTERNATIONAL CORRESPONDENT: You know, Laura, it seems with each passing day another new voice casts doubt regarding whether these games should be held. Today is no different.

A Reuters survey just released found almost 70 percent of nearly 500 Japanese companies want the games canceled or postponed. The reason, it's almost identical to what we've heard in the past from doctors' groups and the general public here in Japan. There are legitimate concerns of increased infection and what could happen in -- to an already strained medical system.

And even though the IOC has repeatedly said that they can deliver a safe and secure Games, it's hard to ignore the reality here on the ground.

Now, Japan is still dealing with a fourth wave of infections. Severe cases have once again hit a record high. And hospitals in several prefectures, including here in Tokyo, are nearly out of bed space. In Osaka, the hospitals are beyond capacity with some people dying at home.

[05:40:11]

Now currently, less than two percent of Japan's population are fully vaccinated. Now, those numbers are expected to increase starting next week when mass vaccination centers open in Tokyo and Osaka. Officials say that the goal is vaccinate about 15,000 people a day -- per day between those two locations.

And there's also Modern and AstraZeneca vaccines which were just approved for us, though medical professionals say that supply isn't the problem. Instead, it's a lack of organization and medical manpower which they say isn't going to change.

All of this, Laura, with two months to go before the Games are set to start.

JARRETT: Yes, I know you're watching this but they've got to get this straightened out for people to have the confidence to feel like this is going to be safe to go forward. Blake, thank you.

ROMANS: All right, to Africa now where many countries there have been struggling to secure enough coronavirus vaccines.

CNN's David McKenzie live in Johannesburg for us. You know, David, why are thousands of shots going to waste?

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, it's a good question, Christine. And one of the biggest issues and strongest possibilities that this pandemic will continue on and on is the lack of vaccine distribution in countries in Africa and other poorer parts of the world.

Only two percent of vaccines distributed at this point have been in countries in Africa. So why is this happening? Nineteen thousand-odd vaccine doses destroyed publicly in the southern African countries of Malawi. They say that the vaccines came too late. They were about to expire. And contradictory, they're saying they want to destroy it to increase public trust.

So one issue is getting vaccines into countries. Another issue, Christine, is actually those countries using them. Many countries don't have the capacity. They don't even have the syringes or the manpower to get shots into arms. So this is going to be a very challenging issue going forward.

The Biden administration has donated at least 80 million vaccine doses to poorer countries. This is seen as a very positive step. But even with those donations, they need countries to have the capacity to actually get shots in the arm.

Of course, there's a wide diversity of countries. Kenya, for example, has run out of vaccines pretty much because they've been so efficient in getting those vaccines out.

So a real game changer is needed on this continent by many countries to actually make this a success -- Christine.

ROMANS: All right, David McKenzie in Johannesburg. Thank you for that.

We'll be right back.

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[05:46:45]

(BEGIN VIDEO CLIP)

PRINCE WILLIAM, DUKE OF CAMBRIDGE: It brings indescribable sadness to know that the BBC's failures contribute significantly to her fear, paranoia, and isolation that I remember from those final years with her.

(END VIDEO CLIP)

ROMANS: That's Prince William and his assessment of how the BBC treated his late mother, Princess Diana. The network, for the first time, apologizing -- forced to apologize, concluding that journalist Martin Bashir deceived Diana's brother in order to score that tell-all interview in 1995.

CNN's Max Foster is live in Hampshire, England. Max, the Prince is speaking more frankly about this now than perhaps ever before. MAX FOSTER, CNN ANCHOR AND CORRESPONDENT: Well, they waited a long time for this apology -- 25 years, effectively -- so it's been a huge upset to them for all that time. It was so defining for Diana, wasn't it?

At the center of this, these fake bank documents, which were created or commissioned by Martin Bashir and were used to secure an interview with Diana. And they fed into many of her fears about the palace -- the establishment, effectively, working against her trying to undermine her. And not only did he do that, but the BBC knew about it and covered it up. So massive accusations across the board here.

I will just say the police are now saying they're going to look at the evidence here again with the potential of opening another criminal investigation to all of this.

Prince William saying that Diana was failed not just by a rogue reporter but by leaders of the BBC who looked the other way rather than asking tough questions.

Prince Harry also coming out with a statement late last night saying the ripple effects of culture -- of the culture of exploitation and unethical practices ultimately took her life.

Harry, there, speaking more broadly about the media and the tactics that some parts of the media used there -- not just the BBC, but actually Charles Spencer, Diana's brother -- going as far as making a direct link between this interview -- the BBC interview -- and Diana's death two years afterwards.

The BBC giving a full apology, but for many people it just doesn't feel like enough. Martin Bashir giving an apology for faking the documents but still standing by the interview.

ROMANS: That interview, I think most famous for what she said. There were three of us in this marriage so it was a little crowded. That is a sound bite that just lives on in an interview that was really a trick. They tricked her to do that.

All right, nice to see you. Thanks, Max Foster -- Laura.

JARRETT: Nothing legal in the past 21 years. It's a stunning comment by the former daughter-in-law of Allen Weisselberg. Remember, he's the Trump Organization's chief financial officer for 40 years.

CNN broke the news this week Weisselberg's taxes are under scrutiny by the New York Attorney General's Office.

Jennifer Weisselberg, the wife of Allen Weisselberg's son Barry, confirms she's handed over a considerable number of documents.

(BEGIN VIDEO CLIP)

JENNIFER WEISSELBERG, EX-DAUGHTER-IN-LAW OF ALLEN WEISSELBERG: Compensation in taxes for the organization, for Donald Trump himself, and for all the employees -- the employees -- specifically, the Trump family and the Weisselberg family are -- there's nothing legal going on there. It's no one's fault but their own. They need to be accountable for what they've done.

ERIN BURNETT, CNN HOST, "ERIN BURNETT OUTFRONT": Will Allen Weisselberg flip on Trump?

WEISSELBERG: Yes.

(END VIDEO CLIP)

JARRETT: Wow.

There's been no comment from her ex-husband Barry Weisselberg, so far.

[05:50:00]

Former President Trump is facing several investigations in New York. This week, the New York Attorney General's Office announced it's joining the Manhattan District Attorney's Office in a criminal probe of the Trump Organization.

ROMANS: Arizona's Secretary of State is urging Maricopa County to decommission and replace all the voting machines being checked in a so-called audit of the election results. Katie Hobbs says she has grave concerns about the security and integrity of the machines. Why? Well, because the chain of custody was broken and election officials don't know if those auditors have somehow tampered with these machines.

The head of Cyber Ninjas, the little-known contractor hired to do this sort of shadow recount -- performance art recount -- has backed conspiracy theories about the election.

JARRETT: An Ohio mother is accused of faking her daughter's illness to raise money for trips and housing. Lindsey Abbuhl set up a GoFundMe page claiming her daughter had a terminal illness. But according to the court documents, when investigators interviewed her daughter they found no evidence she was ill at all.

A family lawyer claims that Lindsey Abbuhl is innocent. GoFundMe has refunded more than $4,000 to donors.

All right, happy hour just got a lot less happy. According to a new study, drinking of any amount of alcohol does damage to the brain. Researchers at the University of Oxford say there is no safe level of drinking. They found evidence that the type of alcohol you consume doesn't matter, whether it's wine, beer, liquor -- it all affects harm to the brain.

This is not news that I like to report on a Friday, Christine.

ROMANS: Oh, yes, Friday happy hour news -- no alcohol is good for you.

All right, a look at the markets around the world to finish this week on that note. You've got Asian shares closed mixed. Europe has opened slightly higher. And on Wall Street, stock index futures to close out the trading week are also up a little bit.

Look, stocks snapped a three-day losing streak Thursday as investors pushed inflation fears aside -- for the day at least. The Dow closed up 188 points. The S&P and the Nasdaq also higher.

Weekly jobless benefits, a new pandemic-era low. This trend is very clear, everybody. The economy is continuing to dig out of the labor crisis.

Investors will see earnings reports today from Footlocker and Deere for a sense of how the economy is doing.

Investors also will see existing home sales data for April. That comes out at 10:00 a.m. eastern time, about four hours from now. The housing market is red hot. The median home price, a record high in March, and homes are selling faster than ever before, Laura.

JARRETT: All right. The Wizards advance to the NBA Playoffs after blowing out the Pacers in the play in tournament. Andy Scholes has more in this morning's Bleacher Report. Hey, Andy.

ANDY SCHOLES, CNN SPORTS CORRESPONDENT (via Cisco Webex): Hey, Laura.

You know, this was an incredible comeback for the Wizards and they had so many injuries and a COVID-19 outbreak during the season. At one point, on April fifth, they had a record of 17 and 32.

But their star Russell Westbrook just vowed during the tough time that they would make the playoffs and they did just that last night, beating the Pacers handily 142-115 to claim the eight-seed at the Eastern Conference. They're now going to face the Sixers in round one.

The Wizards, the first team to make the playoffs after being 15 games under 500 since the '97 Suns.

The playoff field will be set tonight as Steph Curry and the Warriors host the Grizzlies with the number eight seed in the west on the line. Tip-off for that one is at 9:00 eastern.

Now, when the playoffs begin it's going to start to feel more normal in a lot of arenas, including Madison Square Garden. The Knicks announcing they sold out of 15,000 seats for the first two playoff games against the Hawks. Sunday's game is going to be the largest indoor gathering in New York since the pandemic started.

The Knicks expect almost 90 percent of the fans to be fully vaccinated and all attendees must either prove that they are vaccinated or have a negative test taken within 72 hours of the game.

All right, in the NHL playoffs last night we had a scary moment between the Maple Leafs and the Canadians. John Tavares got hit and was falling to the ice. And as he fell he got -- he then got hit right in the face by Corey Perry's knee as he was skating up the ice. Tavares tried to stand up but couldn't, losing his balance. He was taken off the ice on a stretcher and gave the thumbs up on his way off. After the game, Maple Leafs coach Sheldon Keefe said Tavares was conscious and communicating well but was going to remain in the hospital overnight for further testing.

All right, the PGA Championship underway in South Carolina. The shot of the day in round one coming from Columbia's Sebastian Munoz.

Take a look at this. His drive on the 18th hole went way left and wound up right in that trash can with the green bag. Now, the fans were as excited as if he hit a hole in one. Munoz eventually pulled his ball out of the trash can and gave it to a fan.

He ended up making par with his replacement ball, which is rather impressive on that shot, Laura. But a fun event for the fans, especially when a ball lands in the trash can as you were watching right there.

JARRETT: Yes, that's for sure. All right, Andy, thanks so much.

SCHOLES: Yes.

JARRETT: Well, the White House is swiping right to get people vaccinated. The Biden administration partnering with popular dating apps to offer incentives to vaccinated users on Tinder, Hinge, OKCupid, and other apps.

[05:55:03]

Users will be able to gain access to premium content and able to filter potential matches by vaccination status and book vaccine appointments through the apps.

Christine, let's be honest. We have no idea what's going on on these apps. But if I was on one of these apps I would want to see somebody's card, OK? I'm not relying on the honor system.

ROMANS: Now you can maybe cross-reference for a credit score, marital status, vaccination status.

JARRETT: You only care about the credit score, for sure.

ROMANS: Yes.

Thanks for joining us. I'm Christine Romans.

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

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

On this new day, the world watches as a fragile ceasefire begins between Hamas and Israel. What was President Biden's role in the standoff?

Plus, the actual deep state. The Trump Justice Department seizing a CNN reporter's phone and e-mail records -- a blatant attack on the First Amendment.