tv Early Start With John Berman and Christine Romans CNN January 7, 2016 1:00am-2:01am PST
breaking overnight. market mayhem. china shuts down trading after a free fall. get ready for ugliness in the u.s. as well. donald trump and ted cruz digging in their heels on the issue of ted cruz's eligibility for the presidency. both sit down to talk to cnn. the time for playing nice, it appears, is over. and information coming in over north korea's claim of a
hydrogen bomb. good morning. welcome to "early start." i'm john berman. >> i'm christine romans. let's start with the breaking news. turmoil in china. the trading day stopped as soon as it began. plunged at the open for shanghai. the shenzhen market is down 8.3%. some are saying the circuit breakers are causing more unease. the second time this week trading has been halted. china issued new regulations limiting the number of shares traders can share every quarter. the report of china's economy is slowing down and the currency. the european markets are lower. they are concerned about what is happening in the chinese markets and economy. those are big moves.
frankfu frankfurt, 3%. futures here in the u.s., a brutal open coming off a selloff yesterday. the dow plunged 1.5% yesterday. this is the worst start since 2008. the nasdaq and s&p 500 down more than 1% yesterday. north korea's bomb and all adding to the cauldron of fear. a barrel of crude oil is just about $32 a barrel. that is on the global growth concerns. >> for the second time in a week, the chinese market down more than 7%. today it happened in less than 30 minutes. the market opened and then closed because it was crashing. >> a lot of people telling you don't be concerned about the
chinese markets. that can cause more uncertainty. it is difficult to manage markets. >> it is the chines economic engine driving world economic growth for years seems to be slowing down. that is causing fear in china and in europe and now in the united states as well. >> absolutely right. chinese growth has been more than 10% growth for years, for years, now china is looking at 6% growth or 7% growth. there is uncertainty and skepticism about the statistics that come from china. as the huge -- second largest economy in the world, as it slows, it will ripple for everyone. there is not a good sense whether it will be a soft landing or hard landing. >> one thing it is not a soft morning on the markets. they are going down big time. meanwhile, fascinating developments in the political
battle of ted cruz. donald trump holding to the claim of the question if cruz is eligible to run for president. this as some say he was born in canada, but born to an american mother. what is new is that cruz one day after trying to laugh off the controversy, he is now facing it head on. cnn's sunlen serfaty has the latest from iowa. >> reporter: good morning, john and christine. it is clear that donald trump is not backing down. he is now escalating the attacks on ted cruz with the questions over citizenship. he is calling for ted cruz to go to court and ask a federal judge to rule if he is eligible to run for the presidency. here is what trump told wolf blitzer yesterday. >> he said he is a natural born citizen. his mother was a u.s. citizen and he is a natural born citizen. >> i hope he is right. i want to win this fair and
square. i don't want to win on this point. what the democrats are saying is he had a passport. >> he said he didn't have a passport. his aides say he didn't. he may have been eligible. >> i think it is wonderful if he didn't. i never understood how he did. >> reporter: ted cruz is trying to brush it off. he doesn't want to mix this up. he calls this a side show. he insists he never had a canadian passport. here is what he told dana bash. >> son of a legal citizen born abroad is a natural born citi n citizen. the constitution and laws of the united states are straight forward. the first congress defined the child of a u.s. citizen born abroad is a natural born citizen. at the end of the day, this is a non issue.
my response is as you and write talking about, i tweeted a link to a video of fonzie jumping a shark. i'm not going to engage in this. >> reporter: the two frontrunners have largely avoided going after each other. this is especially significant, especially as it inches closer to the iowa caucus. john and christine. thank you. hillary clinton and bernie sanders both campaigning in nevada. clinton has her sights trained on republicans. >> i have listened carefully to all of the republicans running. many of them are very clear, very explicit. they want to chart a new course and they want to turn the clock back and rip away the progress that we made. it matters. it matters what works and what doesn't. it matters whether we are unified or divided.
>> sanders stumping in vegas. he says he is the candidate that can draw democrats to the polls. >> well, i think the safe bet is to make sure that we have a candidate who will excite people and create a large voter turnout. democrats win when we have a large voter turn out and young people and working people come out. democrats lose when the turnout is low. look at the crowds we are drawing. look at the excitement we are generating. >> nevada's expected to be a key state with big voter turnout thanks to the retirement of senate leader harry reid. that is the general election. the caucuses are generally low. hillary clinton has the support of all of the major unions. bernie sanders is opening a number of offices there and does seem to be organizing. new skepticism over north korea's blame it successfully
tested a hydrogen bomb. president obama called south korea's leader. the two agree on the need for stiff sanctions against the north for violating international law. u.s. officials have serious doubts the underground test was a hydrogen bomb. the air force will likely send a sniffer plane to test the air to are try to prove or disproved the claim. cnn's paula hancocks has latest for us from south korea. good morning, paula. >> reporter: good morning, john. we heard from the president's office. south korea said north korea would pay for the test and continue the propaganda broadcasts on the border. this is effectively a mobile installation and they broadcast propaganda messages across the
border, across the heavily fortified demilitarized zone. they pulled this back in august of 2015 when the two sides were getting along better than they are now. this is something that really irritates the north koreans. we heard defectors say they heard the broadcasts and it helped them desired to escape. pyongyang will not be happy with this. it is likely to raise tensions the peninsula. meantime, there is still the hunt on to find out what kind of nuclear test that happened on wednesday. japan, china and south korea, all neighboring countries said they have no indication of radiation. they are checking the ground. they are checking the atmosphere. they have no indication of radiation. they may not find the particles to test to give them an
indication of what it is because because they may have been shielded. >> they may never know. paula, thanks. presidential candidates respond to the north korea news largely training fire at hillary clinton and policies of her husband, bill clinton. >> why does kim jong-un in north korea, a crazy nut case, and these a technical term, have nuclear weapons? because of the failures of the clinton administration. where the clinton administration led the world in relaxing sanctions against north korea. >> north korea has potentially tested a hydrogen bomb. that's not confirmed. here's what is confirmed. he's a lunatic. it is crazy what happened under clinton's administration. >> hillary clinton released a statement saying threats like
this are what is at stake in the election. we need a commander in chief with the experience and judgment to deal with a dangerous north korea on day one. iraq is offering to mediate the growing dispute with saudi arabia and iran. the foreign minister met with the counterpart in tehran on wednesday. qatar is the latest to recall the ambassador from iran. this dispute started or latest round in the dispute started when the saudis executed a top shi'a cleric. and the french magazine "charlie hebdo" is more provocative ever than. now with a special edition drawing an angry response from the vatican. it is a we're of remembrance in
we are counting down the hours to president obama's live town hall on gun violence tonight at 8:00 p.m. eastern on cnn. the president will defend his executive actions on this issue, but his biggest political nemesis will not be there tonight. let's get more from senior correspondent jim acosta. >> reporter: president obama will sit down with opponents and
pro poen ends here on cnn. while the nation's top gun lobby, the nra declined to participate. the president hopes to use the meeting to take on critics of executive action to strengthen the background checks. >> i'm confident there will be discussion of the politics of the issue. we see this is a very good example of how political dysfunction on capitol hill has serious consequences for the safety and security of communities and kids across the country. >> reporter: the town hall meeting on cnn is part of the big push on gun control in his final year in office. he is expected to challenge lawmakers to pass legislation during the final state of the union address for president obama next tuesday. john and christine. thank you, jim.
tonight, 8:00, anderson cooper joins the president to talk about his recent round of executive actions and more. he will take questions from a live studio audience. the guns in america town hall with the president. tonight at 8:00 p.m. on cnn. house republicans make going on a promise by passing a bill to repeal obamacare. the president is certain to veto it. there are not enough votes in the house or senate to override. paul ryan says it is important to confront the president with the hard, honest truth about obamacare although the bill and vote were largely symbolic. top officials denied the nsa spied over the iran nuclear deal. mike rogers and james clapper an appeared before the house committee over questions raised over surveillance over benjamin
netanyahu. saying it inadvertently picked up conversations. the chief justice of alabama ordering all probate judges in the state to stop issuing marriage licenses to same-sex couples. chief justice roy moore is trying to clarify it. judge moore says the alabama judges are bound by a state supreme court ruling last march. although the u.s. supreme court has now legalized it. 18 minutes past the hour. $500 million is not enough? find out how much the next jackpot is going for after no one won last night. >> you said nobody would win.
this morning, the father of a 10-year-old girl is outraged after his daughter was patted down for nearly two minutes by an agent during a security airport check. he recorded the incident. the tsa says the agent did not act improperly and was following protocol. cnn's rene marsh has details. >> reporter: the father of the 10-year-old girl said his daughter received an invasive patdown at raleigh durham international airport. kevin payne said watching his 10-year-old daughter got a patdown made him quote sick to the stomach. she was flagged after officers
found a box juice in her bag. passengers are not allowed to bring liquids over 3 ounces past security checkpoints. a cell phone was in the child's bag and that setoff an alarm in the screening machine. the officer quote followed approved procedures and under certain circumstances children can be given patdowns. we should know the agency modified screening procedures for children 12 and under to reduce the patdowns, but did not ban the practice all together. >> thank you for that. the man accused of buying the assault rifles used in the san bernardino terror attack, pleading not guilty. enrique marquez. there is no evidence that marquez knew of the attack that killed 14 people. marquez allegedly bought the
rifles in 2011 for a planned attack on a college that was never carried out. the defense in the second freddie gray -- not the trial of freddie gray. the officer accused in the death of freddie gray. there is a pre-trial ruling by a baltimore judge who said police officer william porter must testify against colleagues charged in gray's death. the driver of the police van will be on trial. goodson's trial is set to begin on monday. officials in texas moving to fire the state trooper who arrested sandra bland after the grand jury indicted him for perjury. brian encinia. she was found dead in her cell three days later. the special prosecutor in the
case said the grand jury did not believe the trooper's claim he made her step out of the car to conduct a safer traffic stop. she is over and over saying failure to signal? why do i have to get out of the car? he faces up to a year in jail. bill cosby will not face criminal charges in los angeles. the district attorney's office evaluated two allegations of sexual misconduct. from one 1965 and the other from 2008. the prosecutors said they could not find sufficient evidence to back up the claims. one woman alleges the comedian forced her to have sex with him in 1965. one other claims he molested her at the playboy mansion. "star wars the force awakens" is now the biggest
movie of all times in america. shattering the record earned by "avatar" in 2009. and more impressive "avatar" was in theaters for seven months. "force awakens" has been around for 20 days. >> i plan to see it again. i was in vermont. they barely have 1-d up there. >> i have questions. i have to see it again. >> darth vader, luke's father. have i said too much? >> that's not nice. spoiler alert. big baseball news. ken griffey jr. and mike piazza, going to the hall of fame. griffey jr. receiving 99.3%. griffey played 19 seasons in the majors. he had a good time doing it.
mike piazza, an all-star catcher. this was his fourth try getting into the hall. he was drafted in the 62nd round by the dodgers back in 1988. no player drafted that low has ever made it into the hall of fame until now. interestingly, ken griffey jr. was the number one pick. as for barry bonds and roger clemens got 45% of the vote. they are still way below the 75% needed. >> he was waxing poetic about how wonderful they are. >> nice way to stiff the dodgers who drafted you and brought you into the league. 27 minutes past the hour. good news for just about everybody. there were no winning jackpot
tickets sold in wednesday's powerball drawing. the new one for saturday's drawing is $675 million. the largest lottery jackpot in u.s. history. topping $656 million in 2012 for mega millions. what would you buy? >> i would give it all away. no, tuition. you will not win. >> the rest of america is dreaming of what you would spend it on. >> you are not going to win. real money issues to worry about. the financial markets poised for big trouble this morning. an incredibly rocky day in china. the markets shutdown within minutes after opening after a free-fall. could be rough for u.s. markets over the next fewer hours. we will tell you what it means for your money next.
new overnight. chinese stocks dive and china suspends trading for the second time this week. the pain spreads to european and u.s. markets. donald trump continues to go after ted cruz about his eligibility to be president. cruz, trump, sitting down for cnn interviews. they discuss the subject. cruz now for the first time taking on the issue head on. skepticism growing over north korea's claim it successfully exploded a hydrogen bomb. why aren't officials sold? welcome back to "early start." i'm christine romans. >> i'm john berman. 32 minutes past the hour. >> breaking overnight. the trading day in china ended as soon as it began.
shanghai plunged 7%. the shenzhen market plunged 8%. this triggered circuit breakers designed to give investors a chance to calm down. it sowed more concern. investors are nervous. china has issued new regulations limiting the number of shares traders can sell every quarter. every one of the restrictions sows more unease. two separate reports that the chinese economy is slowing down and china guided its currency lower. european markets lower amid chinese conversation and that fear is spreading to europe. paris down 3%. frankfurt down 3%. futures in the u.s. pointing to a brutal open coming off a big
selloff. the dow plunged 252 points. the dow's worst start to the trading year since 2008. nasdaq and s&p 500 down more than 1%. 2008 was a very bad time in global markets. north korea's hydrogen bomb is adding to the fears over the look at oil. crude oil just above $32 a barrel. chinese market jitters expected to ripple around the world again today. cnn's matt rivers live in beijing with the latest. matt, i hear again and again, everything the chinese government has been trying to do to sort of assuage the fears is having the opposite effect.
>> reporter: that is what we are hearing from analysts in beijing and people we spoken to in hong kong. a bit of dark humor on the internet today. people joking that traders by the time they got in, they actually left before their coffee cooled down. it only took about a half hour before trading was halted for the day. in terms of what the chinese central bank is doing, they put more liquidity in the market after it shutdown today. up to around $11 billion u.s. they also introduced new regulations that would limit the amount of shares major shareholders can sell off in stakes of companies listed. you would be able to forgive investors if there is not a lot of confidence of what china is doing now. and the circuit breakers. they were installed to prevent this thing from happening. to calm down and relax a bit.
you see during the 15-minute period where trading is halted, inve investors lined up sell orders. they put them in and it hit that 7% mark. that's what automatically halted trading for the day. >> matt, most american european investors have zero exposure to the chinese stock market. they have american stocks or european stocks. multinationals. they have a basket of different things. why are american or european investors getting slammed if this is a chinese stock market issue? it is because the chinese economy is slowing and no one knows how quickly it is slowing. >> reporter: that's exactly right. i think we mentioned it earlier this week when you and i spoke. in the sense when now it's when china sneezes, the whole world gets a cold. you saw the manufacturing
reports. china manufacturing sector is slowing. there wasn't great news from the services sector. the chinese economy is linked to so many other parts of the world whether through exports or raw materials from south america. it is so linked to the other stock markets. when bad news happens here, you can expect the same thing to happen in europe and later on in the day, the same in new york. >> we will see if that trend breaks today. matt rivers in beijing, thank you. fascinating developments in the political battle over the citizenship of ted cruz. donald trump holding firm to his claim there is a real question of if cruz is eligible to be president. this despite the legal scholars who say cruz who was born in canada, but to an american mother. he does qualify as a natural born u.s. citizen. what is new is that now cruz one day after trying to laugh off the controversy with a video of
the fonz is now taking it seriously. cnn's sunlen serfaty has the latest from iowa. >> reporter: good morning, john and christine. it is very clear that donald trump is not backing down. he is escalating the attacks on ted cruz with the questions over citizenship. he is now calling for ted cruz to go to a court and ask a federal judge to rule if he is indeed eligible to run for the presidency. here is what trump told wolf blitzer yesterday. >> he says he's a natural born citizen because his mother was u.s. born. a u.s. citizen. >> i hope he's right. i know i want to win this fair and square. i don't want to win on this point. what the democrats are saying is he had a passport. >> he says he didn't have a passport. >> a canadian passport. i heard he did. i think that's wonderful if he didn't. i never understood how he did. >> reporter: ted cruz is trying to brush this off. he doesn't not want mix it up
with donald trump over this issue. he calls this a side show in the circus of politics. he insists he never had a canadian passport. here is what he told dana bash. >> the legal issue is straight forward. son of a u.s. citizen born abroad. the constitution and laws of the united states are straight forward. the very first congress defined that child of a u.s. citizen born abroad, is a natural u.s. citizen. at the end of the day, this is a non issue. my response is as we were talking about, i tweeted a link to a video of fonzie jumping a shark. i'm not going to engage in this. >> reporter: the two frontrunners have largely engaged not to go after each
other. this is significant as it inches closer to the iowa caucus. thank you. john mccain, who has no love for ted cruz, he actually thinks there are legitimate questions about the birth. he thinks they need to be explored. he not saying he is not eligible. john mccain was born in the canal zone. he said because it was a u.s. territory, is a legal issue. this goes to show, republicans are talking about this. hillary clinton and bernie sanders on the democratic side. both campaigning in nevada. hillary clinton has trained her sights for the most part on the republicans. >> i have list evened carefully all of the republicans running. many of them are very clear. very explicit. they want to chart a new course and they want to turn the clock back and rip away the progress that we made. it matters. it matters what works and what
doesn't. it matters whether we are unified or divided. >> bernie sanders in nevada as well. stumping in las vegas. he is talking about hillary clinton right now. he says he is the candidate, he is the one who can draw democrats to the polls. >> well, i think the safe bet is to make sure we have a candidate who will excite people and create a large voter turnout. democrats win when we have a large voter turn out. democrats lose when the turn out is low. look at the crowds we are drawing. look at the excitement we are generati generating. >> nevada is a key early voting state in the primary process. it is a test of organization as anything else. it is a caucus. you have to get people to the polls and teach them how to vote. new skepticism over the
north korea blame it successfully tested a hydrogen bomb. president obama called south korea's president. the two agreed on stiff sanctions against the north for violating international law. u.s. officials say they have serious doubts that the underground test really was a hydrogen bomb. one official tells cnn the air force will send a sniffer plane to test the air in the area proving or disprovediing the cl. we have paula hancocks live with more for us. >> reporter: the japanese have sent up sniffer planes after the nuclear test on wednesday. they have not found anything at this point. we heard from japan, china and south korea. there is no indication of any radiation on the ground or in the atmosphere they are testing.
one analysts says they will not find particles to find what was in the nuclear test or what it was composed of. that is a concern. the analysts saying after the third nuclear test, the one in 2013, they didn't find any nuclear particles. they were unable to find out what was tested in that one. we had a first attack from south korea. they decided to resume the propaganda broadcasts on the border. this is a loudspeaker which booms out k-pop songs and talking about how wonderful south korea is and how dreadful north korea is effectively. it does annoy north korea. they denounce the loud speakers. we can expect tensions to rise in the next few days.
>> thank you, paula. one year to the day after the attacks at "charlie hebdo," that magazine still provocative. the latest special edition featured a blood stain gun-toting god on the cover. this has drawn an angry response from the vatican. it is a week of remembrance starting with president hollande. president obama facing a tall task as he tries to sell critics on his executive actions on guns. a town hall meeting hours away on cnn. we will have a preview.
his political nemesis of the gun battle will not be there tonight. we get more from jim acosta. >> reporter: president obama will sit down with supporters and opponents on executive action on gun control with the town hall on cnn with anderson coop cooper. the nra has declined to participate. white house press secretary josh earnest says the president hopes to use the meeting to take on critics of executive actions which are aimed at strengthening the background checks. >> i'm confident there will be a discussion of the politics of this, too. we do see this is a very good example of how political dysfunction on capitol hill has serious consequences for the safety and security of communities and kids all across the country. >> reporter: the town hall meeting on cnn is part of president obama's big push on gun control in his final year in
office. he is expected to challenge lawmakers to pass gun control legislation during the final state of the union next tuesday. john and christine. >> thank you, jim. remember at 8:00 p.m., president obama joins anderson cooper for the town hall event on guns in america. he will discuss the executive action on guns he announced this week. he will take questions from the live studio audience. a town hall on guns in america with president obama moderated by anderson tonight at 8:00. house republicans made good on the promise they passed a bill to repeal obamacare. the measure will go to the president. he will veto it. there are not enough votes to override the veto. the house spearer paul ryan says it is important to confront the president with the hard truth about obamacare. top intelligence officials deny the nsa spied on any
members of congress during the debate over the iran nuclear deal. mike rogers and director of national intelligence james clapper were responding to concerns raise in a wall street journal report of the spying on benjamin netanyahu. saying surveillance picked up conversations with members of congress. the chief justice of alabama supreme court is ordering all probate judges to stop issuing marriage licenses to same-sex couples. chief justice roy moore is trying to clarify, not create confusion. judge moore claims that the probate judges are bound by the state supreme court ruling last march that halted same sex marriages although the u.s. supreme court has legalized it. >> suits are flying. the powerball jackpot sets a new record. is this your retirement plan?
torrential rain maybe tornadoes in the west and a temperature roller coaster in the east. meteorologist pedram javaheri is busy. he has the latest. >> good thursday morning, john and christine. get ready for the roller coaster across the eastern u.s. temperatures are mild and seae n seasonably normal. dallas up to 68 degrees. in fact, you think it is cool today, compared to the last couple years. january 7th of 2014, 27 degrees. average, 38. january 7th of last years, 25 degrees. 43 is above average and mild for this time of year. here is what happens over the next couple days. the trend is short lived.
frigid air by just about everyone's standards. get up to the upper midwest on sunday. temperatures could be around minus 2 for the high temperature. international falls 4 below zero. a wild card game with the seahawks and vikings. game time temperature, 4 degree was windchills 10 to 25 degrees below zero. among the coldest games in nfl history. we will leave you with this perspective of wet weather across the western and southwest in particular, california. two reports of tornadoes on wednesday. guys. pedram, thanks. the man accused of buying assault rifles in the san bernardino attack pled not guilty to charges. ev prosecutors say there is no evidence that marquez knew of the attack that killed 14 people. he allegedly bought the rifles in 2011 for a planned attack on
a college that was never carried out. the defense in the second trial of the officers charged in the death of freddie gray plans to appeal. a crucial pre-trial ruling by a baltimore judge who says william porter must testify against colleagues charged in the death. officer goodson was driving the police van. porter told goodson that gray needed medical attention. and "star wars the force awakens" is now the largest grossing movie of all time. more impressive for the seventh installment of "star wars." >> once it catches on in china.
>> for the worldwide gross. >> i saw the movie in imax 3d. i'll see it again. i'll see it in two dimension. i still have a lot of questions. no spoiler alerts. i have questions. >> bobofet, bounty hunter. ken griffey jr. received the highest votes ever. 99.3%. 3 people did not vote for him. griffey played 19 seasons in the majors. mike piazza, a 12-time all star. this was his fourth try getting into the hall. he was drafted in the 62nd round by the dodgers. because tommy lasorda was
friends with his father. no player drafted that low has ever made it to the hall. ken griffey jr. was the number one pick drafted into the hall of fame. barry bonds and roger clemens both got 45% of the vote. that is up from last year, but short of the 75% needed. >> you can make it. for the piazza thing. that's cool. let's get an "early start" on your money. more turmoil in the chinese stock market. trading ended a half hour after it started. the shanghai dropped 7%. the selloff triggering automatic circuit breakers. shutting down the market to give investors a chance to call down. it is the second time this week trading has been halted. fears the world's second largest economy is slowing down. this is spinning around the world.
paris down 3%. frankfurt down 3.6%. dow futures are down 2%. already this year, the dow lost 3%. you will see another big move here today. more global pain. we will see if there is anything that can stop that from spreading. macy's slashing 4,000 jobs and closing stores this spring. macy's blaming the warm weather for most of the declines. macy's lost money on jackets, hats and scarves. it was one of the worst on the s&p last year. powerball players will have to try again. no winning jackpot tickets. the jackpot was $500 million. the saturday drawing will be $675 million. the largest jackpot in u.s. history. odds of winning are terrible. they are now 1 in 292 million.
that means, no. you will probably not win. all right. "early start" continues right now. new overnight. another meltdown for markets in china. stocks tumbling. trading suspended. and this fear, anxiety spreading around the world. first to europe and the u.s. markets pointing to an ugly open. what it means for your 401(k) and american economy. new battle in the citiz citizensh citizenship. questions raised if cruz is eligible to run for president. cruz is taking the issue on. condemnation giving way to skepticism over