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EARLY START

Gun Control Standoff On Capitol Hill; Speaker Ryan: Gun Sit-In A "Publicity Stunt"; Clinton & Trump Slam Each Other In Speeches; Brexit Voting Begins In U.K.; Economists Say Departure Of U.K. From E.U. Could Trigger Wild Currency Swings; Cleveland Fans Break NBA's Online Store. Aired 5:30-6a ET

Aired June 23, 2016 - 05:30   ET

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


[05:30:00] ANNOUNCER: This is CNN breaking news.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It is time for a real debate on these issues. Radical Islam.

REP. PAUL RYAN (R-WI), HOUSE SPEAKER: House to be in order. The chair wishes to make an announcement regarding the decorum in the House chamber.

(END VIDEO CLIP)

RYAN NOBLES, CNN ANCHOR: Breaking news this morning. An historic takeover of Congress. House Democrats refusing to leave the floor until there is a vote on gun control. A tense standoff with Republicans.

Welcome back to EARLY START. Thank you for starting your morning with us. I'm Ryan Nobles.

ALISON KOSIK, CNN ANCHOR: And good morning to you. I'm Alison Kosik. It's 30 minutes past the hour. Breaking news now, a dramatic standoff overnight in the House of Representatives. Democrats seizing the floor, demanding a vote on gun control legislation before the House goes on its July 4th break. The tension really exploding after 10:00 p.m. with a chant of "no bill, no break".

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: No bill --

HOUSE DEMOCRATS: No break.

UNIDENTIFIED MALE: No bill --

HOUSE DEMOCRATS: No break.

UNIDENTIFIED MALE: No bill --

HOUSE DEMOCRATS: No break.

UNIDENTIFIED MALE: No bill --

HOUSE DEMOCRATS: No break.

(END VIDEO CLIP)

KOSIK: Emotions in the House veering from anger to frustration as protesting lawmakers and constituents take to singing in front of the Capitol.

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(Crowd Singing God Bless America)

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KOSIK: The 16-hour House sit-in, led by civil rights icon Rep. John Lewis, of Georgia. A short time ago Republican leaders adjourned and minutes later Lewis and House Democratic whip, Steny Hoyer, spoke about the need for gun legislation and how they planned to get it passed.

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REP. STENY HOYER (D-MD), HOUSE MINORITY WHITE: -- but there is an epidemic of gun violence in America that we need to pass legislation to make America and Americans safer. The Republicans have left, in the dead of night, with business unfinished.

REP. JOHN LEWIS, (D) GEORGIA: A little more than 50 years ago I crossed a bridge, not just one time but it took us three times to make it all the way from Selma to Montgomery. We have other bridges to cross and when we come back in July we'll start all over again.

(END VIDEO CLIP)

KOSIK: Let's get the latest now and bring in CNN politics reporter Eric Bradner who's live on Capitol Hill. Good morning to you. You've been up all night for this showdown. You've been hanging in there with Democrats. I know their staff members have been bringing them snacks all night. What is the situation now? Are Democrats still there, and who won this battle?

ERIC BRADNER, CNN POLITICS REPORTER: So right now, yes, there are still about 20 Democratic members on the floor of the House. Even though Republicans have adjourned until July 5th and basically are leaving town -- leaving Democrats with no opposing party to debate. No House floor action to interrupt and try to steer toward votes on gun control.

About 20 members are still here. Some of them have blankets. Many of them still have their phones out. They are Periscoping. They are taking turns talking about gun control, making their individual cases. They're the last of a protest that involved about 170 Democrats over the course of the day and involved commandeering the House for 16 hours. It was a remarkable, nearly unprecedented, showdown between Democrats,

who are in the minority here on Capitol Hill, and Republicans, who run the House and the Senate. Republicans thought they could undercut Democrats' momentum by going out of session earlier in the day on Wednesday because that meant the House cameras -- the views we're used to seeing on "C-SPAN" would be turned off.

[05:35:00] The Democrats took things into their own hands and started streaming themselves, using the app Periscope, to show a view from the House floor of what was going on. It was sort of a remarkable development that really took things out of Republican hands.

So the next move for House Speaker Paul Ryan was to vote on a Zika funding measure -- it was totally unrelated -- and then basically say that the House's business is done for a couple of weeks. He adjourned a little after 3:00 a.m. (sic)Eastern Time and Democrats, since then, have been declaring victory but it was really just a public relations victory, if that.

They didn't get any actual gun control measures approved by the House. So now, the big question is what's next? Can they continue this sort of momentum -- this sit-in -- once the house is back on July 5th?

NOBLES: And Eric, you get the sense that Democrats, in particular, are kind of responding to the calls from Americans who'd like to see stricter gun control laws. You see a lot of people, in the wake of the Orlando shooting, saying that thoughts and prayers are no longer enough, but Democrats don't have very many options.

And Nancy Pelosi, the former House Speaker -- she's now the Democratic minority leader -- she talked about that frustration and why they felt they needed to take that step. Take a listen.

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REP. NANCY PELOSI (D-CA), HOUSE MINORITY LEADER: The truth is that we cannot continue to have moments of silence without a plan of action. Moments of silence are a substitute for taking matters into our own hands to make sure we make the American people safe.

(END VIDEO CLIP)

NOBLES: And that is an example of one of those Periscope feeds of the action last night on the House floor. But Eric, essentially what Democrats are saying is that we need to take this issue directly to the voters, and is it possible that we may not know whether or not this protest was successful until we see how voters cast their ballots in these House and Senate elections in November?

BRADNER: That's absolutely right. So, Republicans have a clear majority in both the House and the Senate right now, which means they've voted down these gun control measures, the same ones Democrats are pushing right now, several times before. The outcome was already all but certain when Democrats began the sit-in.

So what they're really trying to do is make November's elections -- make the stakes about gun control. They see this as an issue where they can win, really excite their base, and motivate some Independents, especially in the wake of mass shootings like the one in Orlando.

So, we've already seen Democrats send out several fundraising solicitations to their donors -- their top supporters -- trying to sort of rally the Democratic base around this issue. What we expect to see next is several attempts to sort of keep this going with smaller-scale protests on the House floor in the coming days, and then Democrats will look for ways to revive this in July, all with the intent of making November about this. Of being able to tell voters, look what we did to fight for this issue in hopes that will motivate voters in November.

KOSIK: Yes, oftentimes in politics, perception, public relations can be everything. I mean, you look at where Americans stand. Poll after poll after poll about where they -- where they sit with stronger gun legislation, and they're in favor of it. If we want to put up some of these polls for our viewers to see --

You know, at this point you see these emotional soundbites, let's say, from Rep. Lewis. You see this sit-in. So you see Democrats really winning the public relations fight here. What do Republicans do at this point to try to sort of remedy how they look in this, especially knowing that they turned down the amendments last week?

BRADNER: Right, right. So, Republicans are made to feel better by the fact that once you start asking voters about very specific forms of gun control they sort of back away. It's a very divisive issue.

Republicans' big talking point -- their main response to these sorts of questions from Democrats is to say a) the Second Amendment protects American's rights to own firearms, and b) we should instead by focusing on combating terrorism. Sort of redirect attention to measures that they see as more helpful, perhaps, in preventing mass shootings and the like.

So, Republicans know that this is an issue, especially with the National Rifle Association behind them. It's a very, very powerful interest group that has millions of members across the country. They have a strong base of support on this issue, as well. They have a lot of people who are very motivated by it and those people turn out to vote in November.

[07:40:00] So, Republicans don't really feel a ton of pressure at this point to give in in major ways. We've seen several Republican lawmakers, including Sen. Pat Toomey, back away from negotiations with liberal groups and with Democrats on more sweeping gun legislation to, instead, advance slight reforms, but only smaller measures.

KOSIK: All right, Eric Bradner, I say go ahead and get some rest but something tells me you've still got more work to do.

BRADNER: Thank you.

NOBLES: All right, thank you for your work this morning, Eric. KOSIK: Donald Trump accusing Hillary Clinton of corruption. New attacks from the campaign trail, a shocker there, next.

[05:40:45]

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[05:44:55]

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DONALD TRUMP (R), PRESUMPTIVE REPUBLICAN NOMINEE: She believes she's entitled to the office. Her campaign slogan is "I'm with her". You know what my response is to that? I'm with you, the American people.

[05:45:00] HILLARY CLINTON (D), PRESUMPTIVE PRESIDENTIAL NOMINEE: He has no real strategy for creating jobs, just a string of empty promises, and maybe we shouldn't expect better from someone whose most famous words are "you're fired". Well, here's what I want you to know. I do have a jobs program and as president I'm going to make sure that you hear "you're hired".

(END VIDEO CLIP)

KOSIK: Donald Trump and Hillary Clinton launching scathing attacks on each other with Trump accusing Clinton of corruption and Clinton fighting back.

Joining us now to discuss the latest developments CNN's political analyst Josh Rogin, columnist for "The Washington Post".

JOSH ROGIN, CNN POLITICAL ANALYST, COLUMNIST, "THE WASHINGTON POST": Morning.

KOSIK: Thanks so much for coming on the show.

ROGIN: Absolutely.

KOSIK: So interesting, we saw -- Tuesday, we saw Hillary Clinton with her big speech. The next day, Wednesday, Donald Trump coming out with his big speech. We're getting the idea here of what's going on about attacks but we're especially seeing Donald Trump coming out against Hillary Clinton and the Clinton Foundation. I want to hear -- let you hear what both of them said and then -- and then get you on the other side.

ROGIN: Sure.

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TRUMP: She ran the State Department like her own personal hedge fund, doing favors for oppressive regimes and many others, and really many, many others, in exchange for cash. Pure and simple folks, pure and simple.

CLINTON: Attacking a philanthropic foundation that saves and improves lives around the world, it's no surprise. He doesn't understand these things. The Clinton Foundation helps poor people around the world get access to life-saving AIDS medicine. Donald Trump uses poor people around the world to produce his line of suits and ties.

(END VIDEO CLIP)

KOSIK: So, Donald Trump essentially saying look, donors with deep pockets are giving the Clinton Foundation big money. Hillary Clinton allowing those donors to shape policy. Not necessarily not even giving any proof on this. I'm talking about Donald Trump not giving proof about this, but is floating doubt enough? Is this an effective attack against Hillary Clinton?

ROGIN: Right. I think there's a lot there. There have been a string of stories about contributions to the Clinton Foundation that seem to imply a conflict of interest with some of the duties Sec. Clinton had when she was running the State Department.

However, it's not exactly pure and simple, as Donald Trump says, so he's an imperfect messenger. He's making these broad claims, he's accusing her of felonies on national television, and he's not providing any real facts to back up those allegations.

For Republicans, it doesn't matter. They like it when Trump is talking about this. They want him to talk about Hillary Clinton. They want him to talk about the Clinton Foundation. It means he's not talking about judges, racial bias. It means he's not talking about the Orlando shooting in a way that makes them uncomfortable.

But the bottom line here is that eventually Trump is going to have to put some actual facts where these accusations are so it's a good strategy, probably poorly executed.

NOBLES: And Josh, to your point, this has the potential to be a vulnerability for Mrs. Clinton --

ROGIN: Right.

NOBLES: -- and if we take a look at some of the donations that the Clinton Foundation has received from foreign entities. Places like Saudi Arabia, $14.5 million, Kuwait, Oman, United Arab Emirates.

She hasn't really spelled out exactly what the role of the Clinton Foundation will be if she is elected president, especially because she can't just remove herself anymore and allow her husband to run the organization because she's already talked about a role that he might have in her administration. Does she need to kind of be clear about what will happen to this foundation if she gets elected?

ROGIN: Yes, I think it's going to be a big issue. I know that there are a lot of Republican organizations who have collected a lot of oppo research about the Clinton Foundation. There's no doubt that it's part of the FBI investigation into her email server -- the sort of mix between the Clinton Foundation business and the State Department business. But those are all allegations. None of them have been proven. There are stories about the appearance of conflict of interest. She is going to have tackle those head on. It's not enough just to say the Clinton Foundation is a good organization.

At the same time, Trump is vulnerable on this point, right? His businesses and his campaign are intertwined in a way that's totally unclear, as well. So, if he wants to go there and he wants to start talking about money going all over the place and corrupting politics, that's going to come back to bite him because he's got the same exact problem.

KOSIK: All right, and the mud wrestling match continues between the two. I'm sure we will continue to see that. Josh Rogin, thanks so much --

ROGIN: Thanks, Alison.

KOSIK: -- for getting up early this morning.

ROGIN: Of course.

KOSIK: Brand new report out. The Social Security fund will be tapped dry by 2034, so what does that mean for your benefits? That's next.

[05:50:00]

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[05:54:15] NOBLES: Polls are open in the United Kingdom. Turnout for the Brexit vote expected to be very high as Brits decide whether to leave the European Union or remain. A vote to exit the E.U. would be historic, profoundly reshaping Europe while affecting global markets.

Let's get the latest now, live in London, and bring in CNN senior international correspondent Nima Elbagir. She has the latest -- Nima.

NIMA ELBAGIR, CNN SENIOR INTERNATIONAL CORRESPONDENT: Torrential rainfall flooded polling stations. It hasn't been the most auspicious start to a vote that's been a long time coming. This is a vote about the U.K.'s continued membership of the European Union, but really, it is a vote about Britain's place. Modern Britain's place, not just in Europe, but in the world.

[05:55:00] We're already seeing the impact on the financial markets. We've had a lot of warnings from security agencies in the U.S. and beyond about the potential impact -- the fears of the potential impact this could have on security cooperation, on the global fight against terror. There is a lot of concern as the world waits to find out how Britain will vote.

Here in the U.K., both sides are really biting down on their fingernails watching to see what impact this rain is going to have on the turnout. We've had record numbers of voters registered, 45.6 million people. That's 84 percent of the eligible voters in this country. Whether the rain is going to keep them home and what impact that's going to have on voter patterns remain to be seen.

But given how fraught, how emotional this campaign has been with immigration as a central issue -- we've seen allegations of racism and xenophobia flying across both sides of what really felt like a widening political divide. Even people within their own families weren't agreed as to how they were going to vote. So, many people are telling us, Ryan, they really just want to wake up on Friday morning and finally found out where Britain will stand.

NOBLES: All right, Nima, thank you for that report. Polls close at 5:00 eastern. We won't know the final results until this time tomorrow.

KOSIK: All right, let's get an EARLY START on your money. Markets are relatively upbeat around the world. Asian markets closed mostly higher. European stocks are slightly higher and U.S. stock futures are following their lead, there in the green.

Voting, as you saw, underway in the U.K. on the question of membership in the European Union. Will the United Kingdom stay or leave the E.U.? Wall Street treading very cautiously until that vote comes in.

Some economic data coming out later today. We're going to be getting numbers on initial jobless claims. New home sales numbers coming out, as well. And Blackberry also reports its earnings before the market opens.

The Social Security Trust Fund will be tapped dry in about 18 years. That's, at least, according to a brand new report by the Social Security and Medicare trustees. So, what does that mean? At that point the fund will only have enough revenue coming in to pay 79 percent of promised benefits. So that means if you're expecting to get a $2,000 per month the program will only pay $1,500. So, what would it take to make Social Security solvent? Well, you could increase the Social Security payroll tax, you can cut benefits, or maybe have a combination of the two.

The Cleveland Cavaliers' big win meant big business for the NBA's online store. Monday was the store's best shopping day ever. The team's home city -- it hadn't won a major championship in more than 50 years, so hey, let's go shopping, everybody. Fans wasted little time buying commemorative memorabilia. Cavs fans broke last year's sale number in just nine hours after the team won. What a fabulous game that was. I was so excited.

NOBLES: Yes, good to be in Cleveland right now.

KOSIK: Absolutely.

NOBLES: Chaos on Capitol Hill. A dramatic showdown over guns. "NEW DAY" starts right now.

ANNOUNCER: This is CNN breaking news.

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to your new day. It's Thursday, June 23rd, 6:00 in the east, and we have dysfunction on display. House Democrats demanding a vote on gun control bills and they're holding a sit-in. (Video playing) Here it is right now. This has been going on for more than 18 hours. This is on Periscope because Republicans cut the feed that we're used to seeing from there on "C-SPAN".

ALISYN CAMEROTA, CNN ANCHOR: And that phone number that you see on the bottom of the podium there -- that is the Capitol's switchboard. They are encouraging anyone who believes in their cause to call your lawmakers and tell them that you demand a vote.

Republicans, meanwhile, are trying to end this protest by adjourning the session early without a vote until after the July 4th holiday. House Speaker Paul Ryan calling this a publicity stunt. So we have this story covered the way only CNN can.

Let's begin with Sunlen Serfaty at the U.S. Capitol with all of the breaking details. What do we know, Sunlen?

SUNLEN SERFATY, CNN CORRESPONDENT: Good morning to you, Alisyn. Well, right now there are still about 12 members out on the House floor staging this sit-in. It was something that they kept going throughout the duration of the night. Overnight, there were deliveries of pizzas and there were deliveries of blankets to keep the member warm who really dug in, sitting on the House floor trying to demand a vote from the Republican leadership over gun control measures.

Now, the Republican leadership -- they have adjourned until the July 4th recess, not coming back until July 5th. But Democrats, they are digging in, keeping this sit-in going for days, if not weeks.

(BEGIN VIDEOTAPE)

REP. JOHN LEWIS, (D) GEORGIA: I would ask that all of my colleagues join me on the floor.

SERFATY: It all started around 11:15 Wednesday morning.

REP. JOHN LARSON, (D) CONNECTICUT: We will occupy this floor. We will no longer be denied a right to vote.

SERFATY: Outraged Democrats seizing the House floor demanding a vote on gun control after the worst mass shooting in U.S. history.

LEWIS: How many more mothers, how many more fathers need to shed tears of grief?