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U.S. Carries Out New Strikes On Alleged Drug Boats; Euro Adoption Met With Celebration, Skepticism In Bulgaria; Mamdani Tackles Housing In First Order As New York Mayor. Aired 5:30-6a ET

Aired January 02, 2026 - 05:30   ET

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

[05:30:00]

FREDRICKA WHITFIELD, CNN ANCHOR: U.S. Southern Command confirmed the operation but didn't say where the strike took place. Earlier in the week the U.S. also carried out separate strikes on three other boats.

CNN's Zachary Cohen has the latest.

(BEGIN VIDEOTAPE)

ZACHARY COHEN, CNN SENIOR NATIONAL SECURITY REPORTER: The U.S. military has killed at least eight people over the last two days, announcing a strike against alleged drug boats in international waters on New Year's Eve and one on Tuesday.

Now the strike on Tuesday is different from many of the strikes that we have seen the U.S. military carry out to date, in part because they say that these vessels were traveling in a convoy. Multiple ships traveling together along with what the U.S. says was a known narcotrafficking route. They were targeted and destroyed, according to the U.S. Southern Command.

But interestingly there were -- do appear to have been survivors from that initial strike. Two individuals jumping overboard and abandoning their ship before it was destroyed by a second strike from U.S. forces. The status of those individuals there remains unclear. The military calling in the Coast Guard to initiate a search and rescue operation that remains ongoing. So far, those individuals have not yet been recovered.

But that is a different handling of survivors than we've seen from the military in the past. Obviously, there was the September 2 strike where the military killed two survivors from an initial strike in what is known as a double-tap. That has prompted allegations of an alleged war crime against Defense Secretary Pete Hegseth and the commanders involved.

We've also seen the military detain two survivors on a U.S. Navy ship before repatriating them back to their home countries. And in a third strike, we have also seen them essentially call the Mexican authorities and have them lead a search and rescue mission that ultimately did not recover the individuals.

So this is really the latest in this monthslong campaign that we've seen the U.S. military carry out targeting alleged drug traffickers in international waters. But it also comes as President Donald Trump is escalating a pressure campaign on Venezuelan leader Nicolas Maduro, who he's going to great lengths to connect to this drug trafficking operation and the drug cartels that have been designated as foreign terrorist groups.

We reported last week that the CIA conducted a covert strike inside Venezuela itself. That was really an escalatory move by the Trump administration.

So we'll be watching to see both how these strikes in international waters continue to play out, but also if the Trump administration decides to take additional action targeting Maduro himself.

Back to you.

(END VIDEOTAPE)

WHITFIELD: All right, Zachary Cohen. Thanks so much.

All right. Bulgaria has been waiting for years to start using the euro, but now that the currency is finally adopted why are so many Bulgarians against it? That's ahead.

(COMMERCIAL)

[05:36:45]

WHITFIELD: All right. Welcome back to EARLY START. Let's check on some of today's business headlines.

The price of many prescription medications is set to go up this year, according to data by a health care research firm -- three AXIS advisers. Drugmakers are planning to raise U.S. prices on at least 350 branded medicines in 2026. The list includes vaccines against COVID, RSV, shingles, and even cancer treatments.

And millions of Americans will see their health insurance premiums increase after expanded subsidies on the Affordable Care Act expired on Thursday. The House is set to vote this month on a Democratic plan that would extend the subsidies for three years, but the deal faces significant hurdles in the U.S. Senate.

And the Trump administration is changing some planned tariff hikes. It's cutting planned levies on Italian pasta from 107 percent to between 24 and 29 percent. President Trump is also delaying new tariffs on upholstered furniture and cabinetry until next year.

All right, and then there's mixed reaction in Bulgaria as the country begins to use the euro as its new currency. It was formally adopted as the clock struck midnight on New Year's Eve and more than 350 million Europeans are now using the same currency. But as Ben Hunte reports, Bulgarians are still both in favor and against the euro.

(BEGIN VIDEOTAPE) BEN HUNTE, CNN CORRESPONDENT (voiceover): The clatter of newly-minted coins roll off an assembly line, shining with the national symbols of Bulgaria. These new euros represent the Eurozone's 21st member and the currency switch almost two decades in the making.

It's already a historic new year in Bulgaria. On January 1, cash machines began dispensing euros instead of the old Bulgarian currency, the lev. Bank accounts were converted to euros and there is a one- month transitional period where both the lev and the euro can be used for cash payments, though change will be given in euros.

Some people say it's off to a good start.

STEFAN BISTREKOV, DRIVING INSTRUCTOR (through translator): Our money will be in a different currency. If I have 10,000 levs now, I will have 5,100 euros. It's all the same and I think it will be better.

HUNTE (voiceover): But it has taken a long time for Bulgaria to meet the economic criteria to adopt the euro after joining the European Union in 2007. It's one of the poorest countries in the EU and polls show that about half the Bulgarians surveyed fear the currency switch will drive up prices.

There are also worries about who is in charge during this critical period. The country's prime minister resigned last month after mass anticorruption protests over a 2026 budget proposal. And it's likely Bulgaria will soon face its eighth election in five years.

Some people say it's just not the right time for such a switch.

VANYA ILIEVA, CASHIER (through translator): Right now is probably the most inappropriate time given the situation in all of Europe. These are my concerns. I don't think anyone has anything against the euro as a currency but rather to the timing. And ultimately, I don't believe that erasing and eliminating the lev within the span of a single month is the best approach.

[05:40:00]

HUNTE (voiceover): Other Bulgarians say they expect it will go smoother than some people think.

ANTONIA TSVETKOVA, JEWELER (through translator): Anyone who goes on a trip will not have problems exchanging currency. Now everything will be normal. Even the people in the shops are already prepared and have no worries about accepting the lev and giving euros back in change. These are normal things that we will get used to in a week.

HUNTE (voiceover): National authorities have been set up to make sure businesses are fairly converting prices. And Bulgaria declared a public holiday on Friday with the hopes that as people go back to work on Monday the euro will already be a part of their daily lives.

Ben Hunte, CNN.

(END VIDEOTAPE) WHITFIELD: All right. Still to come, former special prosecutor Jack Smith defends his indictments against President Trump in newly released video. Why he stands by the investigations, next.

Plus, he's the youngest mayor of New York in more than a century and the first Muslim. How Zohran Mamdani spent his first day in office.

(COMMERCIAL)

[05:45:20]

WHITFIELD: All right. Welcome back to EARLY START. I'm Fredricka Whitfield. Here are some of the stories that we're watching today.

About 40 people were killed and more than 100 injured in a fire at Swiss ski resort. The blaze broke out at a popular bar in Crans- Montana during a New Year's Eve party. Authorities say many of the victims were young and it will take days to identify them all.

And people in rain-soaked Southern California are bracing for more storms. Another line of storms is expected to impact the region starting late Friday and again early next week. There was widespread flooding in the San Diego area on Thursday, and some people had to be rescued from cars stranded in high water.

Donald Trump is offering new details about his health. The president told The Wall Street Journal that the bruises seen on his hand for months are a result of his taking a high daily dose of aspirin against the recommendations of his doctors. He says he does it to help thin his blood because he doesn't want -- and I'm quoting him now -- "thick blood pouring through his heart."

And President Trump is expected to continue his stay at his Mar-a-Lago resort in West Palm Beach, Florida until Sunday. He has no public events this weekend. But he has been busy airing his grievances through lengthy social media posts.

Here is more now from CNN's Kevin Liptak.

(BEGIN VIDEOTAPE)

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: President Trump is certainly not letting some of his old grievances rest in the new year, unleashing this combative string of posts on New Year's Eve, but also issuing some dubious claims against his political rivals.

In one, he references this ongoing investigation into alleged fraud in Minnesota -- some of it committed by the state's Somali community.

The president writing, "Much of the Minnesota fraud, up to 90 percent, is caused by people that came into our country illegally from Somalia. 'Congresswoman' Omar, an ungrateful loser who only complains and never contributes, is one of the many scammers. Did she really marry her brother? Lowlifes like this can only be a liability to our country's greatness. Send them back to where they came, Somalia -- perhaps the worst and most corrupt country on earth." Now, President Trump has been attacking Congresswoman Omar for some weeks now but his claim that she is linked to this fraud has no basis in fact and I think it's evidence that as the White House and as the president use these investigations to their political ends that the president will continue going after this community in the weeks ahead.

On a separate topic, the president seems equally incensed. This is about Tina Peters. She's the Colorado election clerk who was tried and convicted for being part of a scheme to prove the president's unfounded claims that he won the 2020 election. She's serving a nine- year prison sentence in Colorado.

The president wrote, "God bless Tina Peters who is now, for two years out of nine, sitting in a Colorado maximum security prison at the age of 73 and sick for the crime of trying to stop the massive voter fraud that goes on in her state." And the president goes on to say, "To the scumbag governor and the disgusting Republican (RINO) DA who did this to her, I wish them only the worst. May they rot in hell. Free Tina Peters."

Now, Trump has been sparring for weeks now, really, with the Democratic governor of Colorado, Jared Polis, who has declined to release Tina Peters from prison. President Trump issued her a pardon but, of course, she's convicted on state crimes so there's nothing the president can really do about that.

Some are also questioning the president's decision this week to issue a veto on a project -- a water pipeline project in Colorado that had gained bipartisan support, and Congress questioning whether this was an act of political retribution for the state's treatment of Peters.

The governor -- the Democratic senator from Colorado, Michael Bennet, writing, "This isn't governing; it's a revenge tour."

Kevin Liptak, CNN, West Palm Beach, Florida.

(END VIDEOTAPE)

(BEGIN VIDEO CLIP)

JACK SMITH, FORMER SPECIAL COUNSEL: The decision to bring charges against President Trump was mine, but the basis for those charges rests entirely with President Trump and his actions.

(END VIDEO CLIP)

WHITFIELD: That's newly released video of former special counsel Jack Smith defending the criminal cases that he brought against President Trump. Those cases included the mishandling of classified documents and the attempt to overturn the 2020 election.

The video was of a deposition with the House Judiciary Committee that was held last month. The interview lasted more than eight hours where Smith was asked to defend his indictments against the president.

[05:50:05] Republican lawmakers have criticized Smith's investigations claiming they weaponize the justice system.

And the Trump administration is abruptly cutting dozens of federal emergency management staff this week. According to internal emails obtained exclusively by CNN, about 50 FEMA employees learned their positions would not be renewed after their contracts expire in the first days of this month. The employees on the response and recovery teams are among the first group on the ground during a disaster.

A spokesperson for the Department of Homeland Security, which oversees FEMA, is denying that it has implemented a new policy for these contract workers and did not address questions about this week's terminations.

The contract employees make up about 40 percent of FEMA's workforce.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (I-VT): I, Zohran Kwame Mamdani --

MAYOR ZOHRAN MAMDANI, (D) NEW YORK CITY: I, Zohran Kwame Mamdani --

SANDERS: -- do solemnly swear --

MAMDANI: -- do solemnly swear --

SANDERS: -- that I will support the Constitution of the United States --

MAMDANI: -- that I will support the Constitution of the United States --

SANDERS: -- the Constitution of the state of New York --

(END VIDEO CLIP)

WHITFIELD: The 34-year-old Democratic socialist who took the political stage by storm was sworn in as the new mayor of New York City. Zohran Mamdani's inauguration Thursday featured some of the biggest names in the progressive movement, including Congresswoman Alexandria Ocasio- Cortez and Vermont Sen. Bernie Sanders, who swore him in, as you see right there.

Mr. Mamdani is the first Muslim and first South Asia mayor of New York, as well as the youngest in over a century.

During his campaign he promised bold changes to tackle affordability and during this speech he doubled down on his expansive agenda.

(BEGIN VIDEO CLIP)

MAMDANI: The only expectation I seek to reset is that of small expectations. We may not always succeed but never will we be accused of lacking the courage to try. I was elected as a Democratic socialist and I will govern as a Democratic socialist. (END VIDEO CLIP)

WHITFIELD: CNN's Gloria Pazmino has the latest on Mamdani's first day as mayor.

(BEGIN VIDEOTAPE)

GLORIA PAZMINO, CNN CORRESPONDENT: Well, New York City Mayor Zohran Mamdani has already gotten to work in the last few hours signing a handful of executive orders directing his new administration to look into ways that New York City could tackle the affordability and housing crisis, trying to figure out what they can do in order to spur construction of housing here in the city -- a notoriously complicated process that is part of what Zohran Mamdani promised and campaigned on.

We heard a lot about that during the inaugural speech. There were thousands of people that came out to support Mamdani in this moment -- to join the celebration. And we watched an inaugural speech where the new mayor recommitted to his political ideals, reminding people that he was elected as a Democratic socialist. He said he plans to govern like a Democratic socialist. And instead of, you know, moving to the center or trying to appeal to moderate Democrats, he said he would continue to stick to his liberal progressive ideas.

He was with Vermont Sen. Bernie Sanders as well as New York Congresswoman Alexandria Ocasio-Cortez who introduced him.

And I think the overall message of today's inaugural address from Mamdani is that the left here in New York City and perhaps around the country is ascent. That is at least the message that he was trying to send -- again, recommitting to his proposals -- universal child care, free and fast city buses, as well as a rent freeze for rent stabilized tenants.

I'm Gloria Pazmino in New York.

(END VIDEOTAPE)

WHITFIELD: All right. College football playoffs are heating up after several shocking bowl games on New Year's Day. The bracket-busters, the highlights, and who is advancing to the semifinals, next.

(COMMERCIAL)

[05:58:30]

WHITFIELD: All right, college football. Several bowl games on New Year's Day thrilling fans and setting up the semifinals.

The Sugar Bowl came down to the wire in New Orleans. The University of Mississippi pulled off a dramatic upset victory stunning the University of Georgia in the final seconds of the game. Georgia had tied the score with less than a minute remaining, but then Ole Miss responded with a field goal and was awarded a safety. The final score 39-34. Ole Miss advances to the semifinals. Meanwhile, fifth-ranked Oregon shut out number four Texas Tech at the Orange Bowl in Miami. Final score -- Oregon wins 23-0. And with that decisive victory the Oregon Ducks advance to the semifinals where they will take on the top-seeded Indiana Hoosiers at the Peach Bowl on January 9.

And speaking of Indiana -- well, they clinched the spot in the semifinals by absolutely trouncing Alabama 38-3. Unbelievable game. The undefeated Hoosiers winning the Rose Bowl for the first time in school history. Indiana is now just two wins away from what could be the school's first -- and, in fact, it would be the school's first- ever national championship.

(BEGIN VIDEO CLIP)

Clip from first film of Betty Boop, "Dizzy Dishes."

(END VIDEO CLIP)

WHITFIELD: Oh, and then there's Betty Boop from the 1930s now entering the public domain, which means it is available for use in adaptation by anyone.

[06:00:00]

Here's the cartoon character in her first appearance in the six-minute short "Dizzy Dishes." That version of Betty is among thousands of creations whose copyrights expired January 1. They include the first four Nancy Drew detective books and the song "Georgia on My Mind."

But Mark Fleischer, whose company owns Betty Boop, says his copyright on the -- on the later fully-formed character remains in force.

Thank you so much for joining me on EARLY START. I'm Fredricka Whitfield in Atlanta. "CNN THIS MORNING" starts right now.