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Early Start with Rahel Solomon

Awaiting Supreme Court Ruling On Trump Tariffs; Mississippi Jewish Community Responds After Synagogue Fire; Sources: U.S. Investigating Device That Some Believe Is Linked To "Havana Syndrome." Aired 5:30-6a ET

Aired January 14, 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]

RAHEL SOLOMON, CNN ANCHOR: Still ahead the latest Consumer Price Index or CPI shows U.S. inflation holding steady. President Trump, though, telling a very different story. His comments from a visit to Michigan just ahead.

(COMMERCIAL)

SOLOMON: Welcome back to EARLY START. The time now is 5:34 and time for your business breakout.

Taking a close eye on U.S. stock futures ahead of the opening bell on Wall Street at this early hour and at this point futures are all off between, let's call it, three-tenths of a percent and six-tenths of a percent.

[05:35:05]

A few things for investors to sink their teeth into today. We get U.S. PPI or Producer Price Index report, factory level inflation. We get retail sales, lots of Fed speak, and also more bank earnings. So a lot for Wall Street to check on today.

And here are some of the other business headlines.

The latest government data shows that U.S. inflation mostly held steady at 2.7 percent in December compared to last year. That is slightly higher than expectations. Sharply rising food prices, higher energy costs, and housing-related inflation all contributing to the increase.

China is reporting a record trade surplus despite the on again-off again U.S. tariffs. Beijing says that it finished 2025 with a $1.2 trillion surplus. Trump's trade war has prompted China to shift its trade focus to Southeast Asia, Africa, and Latin America.

Saks Global, the parent company of Saks Fifth Avenue, has filed for bankruptcy protection. The luxury retailer has struggled with a heavy debt load since it bought out rival Neiman Marcus for $2.5 -- $2.65 billion in 2024. Uncertainty in the U.S. economy and shoppers disillusioned with the luxury market have also hurt the company. President Trump teasing plans to bring down health care costs and

housing prices. He says that he'll announce some this week and others at the World Economic Forum in Davos, Switzerland next week.

The president spent Tuesday in Michigan visiting a Ford plant in Dearborn. That's where he touted his efforts to bring manufacturing jobs back to the U.S.

Then he spoke to the Detroit Economic Club where he rattled off a familiar series of false claims. He said that inflation has stopped, grocery prices are falling rapidly, and the cost of prescription drugs are coming down by up to 600 percent. Now, grocery prices have actually spiked from November to December at the fastest rate in more than three years. And if prescription drugs were down more than 100 percent, pharmaceutical companies would actually be paying you.

As for inflation, the latest government data shows that the consumer prices again rose 2.7 percent annually in December compared to the year prior. Again, that is slightly higher than expectations.

All right. Let's go live now to Austin, Texas and Joe Brusuelas, principal and chief economist at RSM. Great to have you this morning, sir.

Let's start with Iran -- obviously, the big story today. We saw Brent Crude, the international benchmark for oil, hit a two-month high last night -- likely concerns over what might happen next.

What kind of impact would you expect U.S. intervention to have on the markets if, in fact, that is what we see?

JOE BRUSUELAS, PRINCIPAL AND CHIEF ECONOMIST, RSM: Well, of course, that would cause the price of oil to spike temporarily.

But I think that the bigger overall story in the oil market is the flood of supply that continues to show up on the market. Iran produces about three percent of the daily churn or production in global oil production. Venezuela, a little less than one percent. And what you saw is, you know, about a $3.00 move every time we get a problem in Iran.

I think when you take a look at the bigger picture though, oil prices are not likely to go up, they're likely to go down. You're more likely to get a 40 handle on oil than you are a 70 handle. That is $40.00 a barrel versus $70 a barrel.

SOLOMON: Good for consumers. Perhaps not as good for the energy companies that are producing and refining the oil.

Joe, we expect a decision from the Supreme Court on the legality of Trump's tariffs. That could possibly come down today. You have said that could be a watershed moment. How so?

BRUSUELAS: All right. So we're setting up for a very wild Wednesday here in the United States, specifically organized around that Supreme Court decision. You know, that could result in upwards of $100 billion to $150 billion refund to large corporate entities which will then, of course -- the pressure will move from the administration of the Supreme Court to the corporations. Because the first question everyone is going to want answered is are you going to cut prices or are you going to compensate yourself for thinner margins, or are you going to take your windfall and buy back shares?

So this is going to be a very dynamic, fast-moving, potentially huge market-moving event today.

SOLOMON: You say dynamic. You say fast-moving. Trump has said it would be a complete mess if they struck down tariffs. Would it?

BRUSUELAS: No -- no, it wouldn't, but it would require the administration to set out a gradual and orderly refund process. Now, we have not seen anything around that, which is why some market participants are clearly worried. But from an economic perspective what it would do is inject just an enormous quantity of cash back into the economy.

And I'll remind everybody out there watching U.S. tax withholding tables have just changed. We're going to see, I think, closer to $125 billion in tax refunds this year, which really will bolster the U.S. economy. You throw in another $100 billion on top of that -- well, we're going to be talking about an economy that's growing at a much quicker pace.

[05:40:00]

SOLOMON: Hmm.

BRUSUELAS: And inflation risks -- they're probably going to be pointed to the upside vis-a-vis demand for services, not just goods.

SOLOMON: Yeah. I mean, that's an interesting point. You hear a surplus of cash coming into the U.S. economy. What does that do to the potential for rate cuts if that's, in fact, what we see?

BRUSUELAS: Well, my sense is that the Federal Reserve, if this happens, will just slow-walk any idea of a rate cut. You know, those tax cuts are really big.

You know, Scott Bessent, the U.S. Treasury secretary, said he thought we should prepare for a potential of $150 billion. Let me give you some context around that. That's equal to 20 percent of the growth in personal disposable income on any given year over the last couple of years. That's just enormous. Other economies don't experience that. So these premature declarations of victory on inflation I think are a bit overwrought and overdone.

SOLOMON: Hmm, interesting, fascinating.

Great to have you this morning. Joe Brusuelas live for us there in Austin, Texas. Thank you.

BRUSUELAS: Thank you. SOLOMON: All right. Still ahead, the FBI investigating an arson attack at the oldest synagogue in Jackson, Mississippi. Straight ahead the community's response and a look back at the temple's history of being targeted.

We'll be right back.

(COMMERCIAL)

[05:45:43]

SOLOMON: Welcome back. I'm Rahel Solomon. And here are some of the top stories we're watching for you this morning.

And Iranian protester may be executed today according to the U.S. State Department and a family member. President Trump warning Tehran against executing protesters, saying that the U.S. would take strong action in response. He's also encouraging protesters to keep demonstrating and saying, "Help is on its way." According to a U.S.- based rights group more than 2,400 protesters have been killed so far.

A hearing is expected today in the lawsuit filed by the state of Minnesota and the Twin Cities against the Trump administration. The lawsuit is seeking a court order to halt immigration operations. This comes as six federal prosecutors in Minnesota quit after pressure from the Trump administration on how to investigate the deadly shooting of Renee Good by an ICE agent last week.

And Thai officials have called for an investigation into a deadly train accident today north of Bangkok. At least 29 people were killed when a construction crane collapsed, hitting the train and then causing it to derail. Police say that there are more bodies in the wreckage that rescuers have not yet recovered.

A Jewish community in Mississippi is coming together after a historic synagogue was set on fire. According to the FBI, a 19-year-old suspect is in custody and has confessed to the attack. Investigators say that he was motivated by antisemitism.

CNN's Jason Carroll has been speaking with members of the congregation still reeling from the incident.

(BEGIN VIDEOTAPE)

ZACH SHEPNER, BETH ISRAEL CONGREGATION PRESIDENT: These are now what's left of the Torahs.

JASON CARROLL, CNN NATIONAL CORRESPONDENT (voiceover): Beth Israel congregation president Zach Sheppner showing us what he could of his beloved temple here in Jackson, Mississippi. Its windows now boarded, the inside unrecognizable.

RABBI BENJAMIN RUSSELL, BETH ISRAEL CONGREGATION: The things that were inside of it is -- well, it's been completely lost.

CARROLL (voiceover): Rabbi Benjamin Russell has spent the past year at the temple.

CARROLL: What are some emotions that you deal with when you look at all that destruction behind you?

RUSSELL: Sadness, anger, bitterness. Lots of emotions come up. You realize that everything around is destroyed and it's -- you feel like you've been violated.

CARROLL (voiceover): Two Torahs destroyed in the blaze; five others were recovered. This picture showing the parchments being dried.

Beth Israel is the largest synagogue in the state of Mississippi and the only temple with a full-time rabbi. Some 150 families worship there, including congregants such as Sarah Thomas and Rachel Meyers.

SARAH THOMAS, BETH ISRAEL CONGREGANT: I'm feeling very anxious and concerned, especially for the safety of our children.

RACHEL MEYERS (PH), BETH ISRAEL CONGREGANT: Waking up today I'm feeling resilient and I'm feeling strong.

THOMAS: I arrived on Saturday morning and I stared at the building, and I could not help but think about generations of people who had poured into that congregation. And I couldn't help but think about 1967.

CARROLL (voiceover): Nineteen sixty-seven was the year Beth Israel was first targeted by hate. The Ku Klux Klan bombed the synagogue. It's former rabbi -- Perry Nussbaum's home also bombed by the Klan. Nussbaum targeted for speaking out for racial justice in the midst of what was the segregated South.

CLAY CRYSTAL, BETH ISRAEL CONGREGANT: I think antisemitism in the south was more prevalent then than it is now.

CARROLL (voiceover): Clay Crystal, who attends Beth Israel, was just a teenager in '67. The fire now brings back memories of the bombing he still remembers hearing all these years later.

CRYSTAL: Just a huge boom. But it was a couple of miles from our house and so it was that powerful. And certainly, we live in a tense political time and people latch onto narratives that are not representative of the general population.

CARROLL (voiceover): A plaque stands as a reminder of what happened in 1967. Stuart Rockoff wrote the inscription. He's also a historian and a member of the temple.

STUART ROCKOFF, EXECUTIVE DIRECTOR, MISSISSIPPI HUMANITIES COUNCIL, HISTORIAN, BETH ISRAEL CONGREGANT: You know, when this synagogue was dedicated in 1967, we had ministers from all sorts of different churches here -- Black and white, which is very notable in 1967 in Mississippi. That feeling of connection is needed now more than ever.

[05:50:00] CARROLL (voiceover): The fire comes amid a wave of antisemitic incidents in the United States. The Anti-Defamation League recorded record numbers in 2024, the highest since records began in 1979.

For its part, Beth Israel has received an outpouring of support from the religious community from across all denominations, and not just in Jackson but nationwide -- welcome news to its rabbi. So much here has been lost but not forgetting what they still have to be grateful for.

RUSSELL: Having each other -- I'm sorry.

CARROLL: It's OK. It's OK.

RUSSELL: We are fortunate. We are very fortunate and we've very blessed.

CARROLL: Yeah.

Late Tuesday, investigators were still here at the scene at Beth Israel. The rabbi who I spoke with tells me it could take up to a year or even longer before they're able to reopen, but he says they will reopen.

Jason Carroll, CNN, Jackson, Mississippi.

(END VIDEOTAPE)

SOLOMON: After the break, Copernicus has released its final climate data for 2025. Still ahead, what the climate change monitoring service said about last year's hot temperatures when we come back.

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[05:55:30]

SOLOMON: U.S. investigators believe that they may have the source behind the mysterious illness known as "Havana Syndrome." It first emerged in late 2016 when U.S. diplomats stationed in Cuba reported symptoms of vertigo and extreme headaches. The U.S. Defense Department has spent nearly a decade trying to find the cause.

And now sources tell CNN that Homeland Security investigators have been testing a device purchased in an undercover operation that may be the culprit. They say that it emits pulsed radio waves and contains some Russian components. The device is still being studied, and the illnesses remain officially unexplained.

The European service that monitors climate change has released its final climate data for last year, and Copernicus says that 2025 was the third-hottest year on record.

CNN's Derek Van Dam takes a closer look.

(BEGIN VIDEOTAPE)

DEREK VAN DAM, AMS METEOROLOGIST: New environmental data just dropped from Copernicus, Europeans earth monitoring services, and it's a shocker. Two thousand twenty-five was the third-warmest year on record across the planet -- only marginally cooler than 2023 and cooler than 2024, which we know went down as the hottest year ever recorded on planet Earth.

I want you to take note on this map -- the global map here into the Antarctic region. This is an area where we had the warmest annual temperature ever recorded, according to his recent study. And into the Arctic we had our second-warmest annual temperature ever recorded.

What's interesting about this is that the three-year period we're in, from 2023 to 2025 -- this is the first three-year period where the Earth's temperature averaged about that 1.5 degree Celsius threshold -- the ever-important threshold set back in the Paris climate accord. And the last 11 years have been the warmest 11 years on record. So that's really saying something about the trajectory of the temperature of our planet, right?

So you look at this map, and you can see some of the pre-industrial references for the -- let's say the 1940s and 1950s, and then the gradual increase in our temperatures. This is an astounding map as well. What you're looking at is where the extremes were the most evident throughout 2025.

So this map is kind of showing you where the extreme temperature days increased the most. Take note of East Asia, southern portions of Australia, portions of Europe and into North Africa, as well as North America. These are the temperature days that we've seen on the increase that stress our human body, they stress the power grid, and they further exacerbate drought.

So as we continue to release greenhouse gases into the atmosphere, no doubt we will have these continued emissions with business as usual. And we will see the extreme heat stress days increase, but also the global average temperature increase, unfortunately, as well.

Back to you.

(END VIDEOTAPE)

SOLOMON: Derek Van Dam, thank you.

In about 24 hours from now, four astronauts will be on their way home returning to Earth more than a month earlier than their mission originally planned. NASA's SpaceX Crew 11 is set to splash down off the California coast. They're heading back ahead of schedule due to an undisclosed medical issue affecting one of the astronauts. It's the first time in history that a crew has come home early from the ISS due to a health concern. They all appeared in good spirits on Monday as they handed over command of the International Space Station.

And we will have special coverage of the crew's return right here on CNN starting at midnight Eastern time, 5:00 GMT.

All right. There is another high-profile coaching vacancy in the NFL. Mike Tomlin stepping down after 19 seasons as head coach of the Pittsburgh Steelers. His final game was Monday night as the Steelers were eliminated from the playoffs by the Houston Texans. Tomlin has never had a losing season with the Steelers. He led the team to a Super Bowl Championship defeating the Arizona Cardinals in the 2008 season. Tomlin says that coaching the Steelers has been an absolute honor.

All right K-Pop fans. BTS is back. The world's famous boy band reuniting for the first time since 2022 for a brand new album coming in March and a world tour that begins in April. Now it's the first time that all seven members will perform together since completing their mandatory military service.

[06:00:00]

The tour kicks off in South Korea and makes a stop in Tokyo before coming to the U.S. in late April and May. Dates in other cities in Asia, Europe, North and South America, and beyond have also been announced extending into 2027. Get excited, fans.

All right. That's going to do it for us here on EARLY START. I'm Rahel Solomon live in New York this morning. I'll see you tomorrow. But in the meantime, "CNN THIS MORNING" starts right now.