[Dave Briggs, Cnn Anchor:] A repeat offender deported five times has been found not guilty in the killing of a California woman in the criminal case that propelled Donald Trump's political rise. His steaming and sanctuary city critics are demanding justice.
[Sen. Mitch Mcconnell , Senate Majority Leader:] While senators in the Senate will continue to debate the bill tonight, the next roll call vote will be at 11:00 a.m. tomorrow morning.
[Christine Romans, Cnn Anchor:] Senate Republicans are poised to advance their tax plan. But first, the party has to satisfy concerns of a key senator, one the president has squared off with before.
[Jimmy Kimmel, Host, Abc "jimmy Kimmel Live!":] So if you are challenging me to a fight, here's what we'll do. Let's find a place to do it. I'll wear a Girl Scout uniform so you can have something to get excited about.
[Briggs:] You'd think Roy Moore has bigger things to do than fight with Jimmy Kimmel, but that's what Moore did. And Kimmel, as you could her, fighting back. Thanks for getting an early start with us. Dave Briggs is here. I'm here. That's how the president described Rex Tillerson.
[Romans:] You're here, you're here.
[Briggs:] Not an overwhelming vote of confidence. We'll discuss the secretary of state, ahead.
[Romans:] I have great confidence in you that you are here.
[Briggs:] I'm here.
[Romans:] There will be no "Dexit" "Brexit" "Dexit."
[Briggs:] We'll see about Monday "Riggsit."
[Romans:] But no "Dexit."
[Briggs:] No "Dexit."
[Romans:] No Dave exit. All right, I'm Christine Romans. It is Friday. It is 32 33 minutes past the hour. Let's begin, though, in California. The stunning verdict in the murder case against a seven-times convicted, five-times deported undocumented immigrant. He was charged in the 2015 shooting death of Kate Steinle, a case Donald Trump used to propel his political rise. A San Francisco jury finding Jose Garcia Zarate not guilty of murder.
[Briggs:] Prosecutors had argued he shot Kate Steinle intentionally as she walked on the city's waterfront, but Garcia Zarate's lawyer said the gun went off accidentally and the bullet ricocheted off the ground before hitting Steinle.
[Romans:] San Francisco had released him from custody before the shooting instead of handing him over to federal immigration agents. Candidate Donald Trump decried San Francisco and other sanctuary cities which limit cooperation with immigration authorities. Now, critics of the sanctuary law say Steinle would be alive today if not for extra protection for undocumented immigrations.
[Briggs:] Sanctuary city proponents argue that immigrants are more likely to cooperate with local authorities if they don't fear it will lead to deportation. Garcia Zarate's public defender gave this blunt warning to critics of the verdict, including in Washington.
[Matt Gonzalez, Attorney For Jose Garcia Zarate:] There are a number of people that have commented on this case in the last couple of years the attorney general of the United States, the president and vice president of the United States. Let me just remind them that they are, themselves, under investigation by a special prosecutor in Washington, D.C. and they may, themselves, soon avail themselves of the presumption of innocence and the beyond a reasonable doubt standard. And so I would ask them to reflect on that before they comment or disparage the result in this case.
[Romans:] The president President Trump took three hours to reflect, then tweeted this. "A disgraceful verdict in the Kate Steinle case. No wonder the people of our country are so angry with illegal immigration." CNN's Dan Simon covered the trial. He has more from San Francisco.
[Dan Simon, Cnn Correspondent:] Dave and Christine, this is really the case that made the term sanctuary city part of the American vocabulary. Before this happened nobody had really ever heard the term and they had no idea what a sanctuary city was. That all changed on July first, 2015. That's when 32-year-old Kate Steinle was taking a stroll on Pier 14 with her father Pier 14 being a popular tourist spot in San Francisco. She's enjoying the views in San Francisco and then all of a sudden a shot rings out. About an hour after the shooting police had their suspect in custody, 45-year-old Jose Ines Garcia Zarate. He's an undocumented immigrant. He had been deported to Mexico five times and he would have been deported a sixth time but San Francisco, a sanctuary city, does not comply with federal immigration detention rules and therefore, let him go. The defense said this was nothing but an? They said that the gun was found under Garcia Zarate's seat. That it was wrapped in some cloth and when he examined this object the gun just went off. And they also said that this gun, a 40-caliber pistol a Sig Sauer has a history of accidental discharges. And ultimately, the jury found enough here to declare reasonable doubt. He was found guilty of being a felon in possession of a firearm. He'll be deported back to Mexico. And keep in mind he's already come into the country several times so some might make the argument that he might attempt to come back to the United States once again Christine and Dave.
[Romans:] All right. Dan Simon, thank you. Attorney General Jeff Sessions releasing this statement after the verdict. "I urge the leaders of the nation's communities to reflect on the outcome of this case and consider carefully the harm they are doing to their citizens by refusing to cooperate with federal law enforcement officers."
[Briggs:] Prosecutors calling the verdict disappointing. The Steinle family expressing disgust. This statement from Kate Steinle's brother, Brad. "The system failed Kate Steinle from the start. Why would the verdict be any different? It is failure after failure. The culmination of events in an epic fail." Kate's father Jim said he was saddened and shocked, adding "Justice was rendered but it was not served."
[Romans:] Senate Republicans trying to pass a tax bill. They can see the finish line but they can also see the high hurdles remaining before a hoped-for final vote later today. Their top concern, the deficit, and there was bad news for the GOP on that front, a new report from the nonpartisan Congressional scorekeeper for taxes. The Senate bill estimated to cost more than twice as much as it generates in revenues.
[Briggs:] And that was a big problem for one of the president's loudest Republican critics in the Senate, Bob Corker. He has promised not to let the tax bill drive up the deficit so he's fighting for big changes here. Corker's stance leading to a testing huddle here on the Senate floor. Now, some Republican lawmakers are furious at Corker's tactics. One aide telling CNN it didn't need to be done publicly.
[Romans:] Joining us now, political economist Greg Valliere, chief strategist at Horizon Investments. Good morning, Greg. And your job is to translate what's happening to Washington for the people who are moving around and making money in the market. So tell me this. What are the chances that they get this thing to the finish line and what does it look like in your view?
[Greg Valliere, Political Economist, Chief Strategist, Horizon Investments:] Well, I still think it makes it to the finish line. The market, of course, had an explosive rally yesterday when John McCain announced he was going to support it. The markets really want to see this deal get done. But it could slow down. It might not get done today. And I think, more importantly, it might get watered down a bit to satisfy the deficit hawks like Corker. Maybe some of the business provisions won't be quite as generous as the president was hoping for.
[Briggs:] So, Mitch McConnell always described it as a Rubik's Cube.
[Valliere:] Yes.
[Briggs:] I've always felt that they might, instead of solving it, just move the stickers around
[Valliere:] Yes.
[Briggs:] like I did when I was kid. So what stickers do they move around? What revenue do they find to satisfy Corker, Flake, maybe even Johnson?
[Valliere:] Well, they do something to reduce the deficit estimate, first of all. Second, they probably, again, make it a little less generous. Maybe the top corporate rate will not go to 20 percent. Maybe it goes to 22 or 23 percent. Maybe the corporate alternative minimum tax stays. There are things they can do to probably satisfy Corker. The obvious question is would that antagonize others in this Rubik's Cube.
[Romans:] Greg, let me ask you this. The Dow Jones Industrial Average is up 6,000 points since the election. The economy I mean, I would say the economy is on fire.
[Valliere:] Yes.
[Romans:] You've got home sales, new home building, lending, consumer confidence, consumer spending. Just about every little box to tick is really doing well here right now.
[Valliere:] Right.
[Romans:] So we need tax cuts for companies?
[Valliere:] Well, that's quite a question, Christine. I mean, he went to Missouri this week and said that the economy's weak, it's not doing all that great, we've got to get tax cuts. The unemployment rate in Missouri is something like 3.5 percent
[Briggs:] Wow.
[Valliere:] so it's awfully hard to make a case that this economy is ailing. You could make a strong case we need tax reform.
[Romans:] Yes.
[Valliere:] The way we tax international companies things like that. But if you want to if you want to throw $1 trillion at a tax cut when maybe that medicine could be saved to time when we really might need it.
[Romans:] You know, that's interesting because when I look at this, how this whole debate has changed, it really did start, I think, by this real tax reform.
[Valliere:] Yes.
[Romans:] And now, this looks to me like corporate tax cuts and reform of the system to a territorial system, right, but kind of
[Valliere:] Right.
[Romans:] a mess on the personal side.
[Valliere:] Oh, I agree. And I think for corporations, which are going to do exceptionally well, you have to ask the question with an extra big pile of money are there workers out there to hire? The unemployment rate is so low. There's a shortage of labor in much of the country. I'm not sure it's going to lead to a huge, new round of hiring.
[Briggs:] All right. Well, the economy would not like a government shutdown
[Valliere:] Right.
[Romans:] Yes.
[Briggs:] and that could be just about a week away. Meanwhile, "The Washington Post" reports that President Trump is telling confidants that could be good for him politically. Would it?
[Valliere:] No, I don't think it's good for anybody. It will be a pox on all your houses if they do this. You know, now that we get the dessert first with a tax bill, then we've got a big plate of broccoli that we've got to deal with by the end of the year. And right now, they are so far apart on the budget what do you do with the Dreamers, what do you do with spending levels that there could be a shutdown. Maybe they drag it into January, but I think the chances of a shutdown have increased this week as both Pelosi, Schumer, and Trump all indicate an unwillingness to deal.
[Briggs:] Immigration at the heart of that.
[Romans:] Yes.
[Briggs:] I like broccoli, frankly.
[Romans:] I do, too, but I get the metaphor
[Briggs:] I'm unusual.
[Romans:] as well.
[Valliere:] I like I like dessert.
[Romans:] Greg Valliere, have a great weekend.
[Valliere:] All right, guys. See you later.
[Romans:] Thank you, sir.
[Valliere:] Yes.
[Romans:] All right. "The New York Times" reporting this morning President Trump pressed top Republicans over the summer to end their Russia investigation. The highly unusual intervention said to include the chairman of the Senate Intelligence Committee which is overseeing one investigation. According to half a dozen lawmakers and aides, the president told Intel chairman Richard Burr he was eager to see an end to the probe that has overshadowed much of his first year in office. Burr tells the "Times" he informed the president when the committee has spoken to everyone it needs to, they will finish.
[Briggs:] The chairman insists he did not feel pressured by Mr. Trump. The report also says the president urged Senators Mitch McConnell and Roy Blunt, who is on the Intel Committee, to end the Russia investigation swiftly. A White House spokesman telling CNN at no point has the president attempted to apply undue influence on committee members. Ahead, one of the more bizarre Twitter fights you've seen in recent history. Roy Moore challenging Jimmy Kimmel to face him man-to-man.
[Kimmel:] With me, he wants to go man-to-man. Maybe if you wanted man- to-man instead of man to little girl you wouldn't be in this situation allegedly.
[Briggs:] Wow. What led to the dust-up, next.