jamal khashoggi. overnight, turkish investigators left the saudi consulate in istanbul after spending about nine hours searching that building. two sources tell cnn the saudis are preparing a report expected to acknowledge khashoggi's death and call it the result of the unsanctioned interrogation gone awry. cnn correspondent sam kiley standing by for us in riyadh. sam, while we are waiting to hear from the saudi king, a shifting explanation here from the saudis. it looks like it is under way. >> reporter: radical shifting in explanation. i should say this has emerged from cnn's digging and private sources. the official line is still that mr. khashoggi disappeared. the attorney general has been ordered to open a formal investigation here in riyadh into his disappearance. we are hearing from several

sources that there has been since about saturday night an effort put into preparing a statement that would in part admit that "the washington post" columnist is dead and he is dead as a consequence of something went wrong rather than policy decision to murder him. that is a crucial distinction. on top of that, mike pompeo is due to see the king and crown prince later on today and have dinner with him. it was the crown prince who was the author of the hard line denials that came out of saudi arabia right up until the king himself reached out to the u.s. and turkish presidents and began a grip on the situation and dealt a conciliatory tone. i think that is unlikely to be

met with the saudis which are key to provide their own sovereignty. we will get a lot of revelations over the next 24 hours. >> i would say so. cnn learned, sam, the kingdom is denying the davos in the desert until after the investigation. there is certainly a lot of pressure for executives to drop out. many have. what do we know about the plans for the steve mnuchin? you think he still goes? >> reporter: well, there are two things going on there. there is the relationship between the united states and saudi arabia which is absolutely crucial. not just commercially. as you suggested in terms of tracing a terrorist funding and financing and intelligence in general. tightly knit together as they are with the united kingdom. that is the relationship that

mr. pompeo needs and wants and will prefer. you have the public face of davos in the desert. it depends on the american administration in terms of the narrative. they have until friday to decide to publicly endorse the investment conference. that relationship, i think, is absolutely critical to both sides. >> fascinating. optics of shaking hands at the summit when you have an international incident and murder of a journalist. sam, thank you. the white house plotting its next move in the response of the khashoggi murder. president trump spoke to king salman on sunday and seems to be accepting his denials. >> the king firmly denied any knowledge of it. he didn't really know -- i don't

want to get into his mind, but it soupnded to me like maybe it could have been rogue killers. who knows? all i can do is report what he told me. he told me in a firm way they have no knowledge of it. it sounded like he, also the crown prince, had no knowledge. >> the washington post where khashoggi was a writer published an op-ed "who needs saudi arabia." the president is overvaluing his relationship with the kingdom writing the reality is saudi arabia has everything to lose with a break in relations while the united states is no longer needing the kingdom as much as it once did. whatever the outcome of the khashoggi case, reshaping of the relationship by congress if necessary is imperative. james mattis made it clear overnight he never talked with president trump about leaving the administration. this comes after the "60 minutes" interview where trump

said mattis was sort of a democrat and acclaimed he knew more about nato than his defense secretary. a top nato commander. on the plane overnight, mattis said this. >> i'm on his team. we have never talked about me leaving. you can see right here we're on our way. we just continue doing our job. >> mattis later told reporters he and the president spoke saying they are 100% with each other. cnn reported in june on their differences between trump and mattis leading to friction at the pentagon. could we witness a preview of 2020 election? president trump and elizabeth warren duking it out over the dna test. it confirms the senator's distant native-american ties. dating back to six to ten generations. she is one 1/64 and 1/1024 native-american. when asked about the pocahontas

cracks? president trump turned the tables. >> absolutely. she owes the country an apology. what is her percentage? all right. some breaking news now. we have some live pictures of the meeting we discussed moments ago regarding jamal khashoggi. "the washington post" journalist who disappeared. mike pompeo is meeting with saudi king salman. later expected to meet with the crown prince and hopefully, christine, get some answers over what happened to khashoggi. >> this is a high stakes performance here for both the saudis and americans because there is international outrage and big questions about what happened to a saudi citizen who has u.s. residency, journalist for "the washington post" who

went to get a marriage license at the istanbul consulate and never came out. the story from the saudis has shifted. >> the administration clearly wants this to blow over. wants it to go away. a few congress members have said they won't let that happen. lindsey graham said there will be hell to pay if the saudis are responsible for killing khashoggi. and marco rubio says congress will indeed act. what remains to be seen. >> after a 40-minute conversation with the president and the saudi king. the president seemed to float the trial balloon from the saudi authorities. they seem to be preparing a statement of rendition and interrogation that went wrong and it was accidental murder. if there is such a thing. >> we will stay on this story for you. right now, officials say nearly 250 immigrant children remain in u.s. custody separated

from families. court documents show the children have parents removed from the united states. of those, 18 are currently in the pipeline to be reunited with parents in their home countries. filing is part of the aclu class action suit against the separation comes as the trump administration considers a new pilot program which would result in more separations. a federal judge throwing out stormy daniels' lawsuit against president trump. the adult film star sued in april when the president accused her of a total con job after she claimed a man threatened her to stay silent about her alleged affair with mr. trump. the judge james otero claimed it constitutes hyperbole. normally associated with politics. in other words, free speech. judge otero says the president

is entitled to attorneys fees. stormy daniels lawyer, michael avenatti, has already filed a notice of appeal. tributes pouring in for paul allen. the billionaire co-founder of microsoft. he died monday at 65 of complications of non hodgkin's lymphoma. allen launched microsoft with bill gates in 1975. after they met at a seattle private school. allen left in 1982 after he was diagnosed with hodgkin's disease. gates remembering allen as a dear partner and friend. personal computing would not exist without him. >> allen remained on the microsoft board as he launched his own foundation and an investment firm and bought the portland trailblazers and seattle seahawks. quarterback russell wilson said we lost a giant and friend. mr. allen, thank you for your extraordinary vision and abundant generosity and believing in all of us.

you made us all better and kinder. may you rest in peace. go hawks. actually, you have to say one of the giants of the 20th and 21st century. how microsoft and i would say steve jobs. >> right up with steve jobs. ahead, the economy is thriving, but the deficit meanwhile is at a six-year high. why the trend shows no signs of slowing. is it possible to save someone's life... from thousands of miles away? yes. thanks to the dedicated technicians at the american red cross... who worked with vmware... to develop technologies to help redirect the flow of blood to the areas and people needing it most. helping them recover... and refilling everyone with life-affirming hope.

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michael's power. >> to see this personally is very tough. very, very tough. total devastation. >> the death toll from hurricane michael now stands at 19 in four states. one body was found monday in mexico beach. the number of missing there dropped from more than 30 to just 3. crews finishing the third and final sweep of the area using cadaver dogs. >> mexico beach residents can return, but cannot stay there. an 8:00 p.m. curfew is in place. in washington, liberty, jackson, franklin, calhoun and bay counties. schools are still closed in those counties. much of mexico beach was obliterated, one structure is still standing high. check out the sand palace. a three-story four bedroom on stilts remains mostly in tact. it was built to handle 250-mile-an-hour winds and the

owners of the home will be on "new day" later this morning. the federal government is racking up the bills. spending so much more than it takes in. it is running the largest budget deficit in six years. a sign that tax cuts are curbing how much the u.s. collects. into the treasury coffers. the u.s. deficit rose 17% this year to $779 billion. that's the highest since 2012 when the country was spending big to stimulate a struggling economy. 2018 is different. it's not struggling. the economy is strong and growing. typically deficits shrink during boom times. government collects more from taxpayers. because of tax cuts, the government is taking in less and spending more.

tax revenue failed to keep up. with corporate tax collection down 22% or $76 billion. the white house defended the tax cuts. it is boosting economic growth which will eventually increase tax revenue. steve mnuchin said the white house will eventually cut wasteful spending to make up the difference. watch out for entitlements. >> you can't help but wonder if the republicans will return to deficit concerns. imagine this happening to your plane. renewed concern about drones after tests show the bigger aircraft may not always win. and who would win this? bottom of the ninth. bases loaded. two outs. coy wire has the brewers and dodgers drama next in the bleacher report. ♪

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new impact tests prove large aircraft won't always win in a collision with small drones. a test designed to mimic a mid air collision at 238 miles per hour shows bigger may not always be better. in that test, the drone did not shatter on impact, but tore open an m-20 aircraft's wing. a lead researcher says as the number of hobby drones in the air increaseincreases, so, too,e catastrophic event. if silence and civilization don't get you interested in

climate change, maybe beer will with. climate change will cause a beer shortage because barley is subject to heat and drought. prices around the world would double on average. time for an office pool. the megamillions is $654 million. if you choose the lump sum you get $372 million. by the drawing tonight, it could eclipse the record of $656 million set in 2012. i'll put $5 in. >> you will? that deserves a breaking news banner. but the breaking news we have for you is this. secretary of state mike pompeo in saudi arabia in riyadh to discuss what happened to jamal khashoggi. the u.s. resident and washington post journalist who disa peer peered -- disappeared today when

he entered the consulate in istanbul. this is a high stakes meeting. >> smiles on their faces, but this is a serious test -- should be a serious test with the alliance with the united states and saudi arabia. has the president shown he wants to be tough on the saudis for this? the saudi story has been shifting. >> still have not heard from pompeo. the shifting excuses from the saudis and we with will see what the president -- we will see what the president is prepared to do. we will talk more about that in a bit. let's talk sports. cheese head nation may be sleepy. wisconsin fans were up late. coy wire has the bleacher report. >> good morning. it has been seven years since the badger state has experienced a double dose of brewers and

packers action. the teams gave them a warm feeling on a chilly night. 32 degrees. aaron rodgers and packers down by seven and less than three minutes to go. leader of the pack falling back and doing what made him a two-time mvp. delivering a touchdown to tie the game. the niners fail to score. rodgers takes over with his legs with a 29 yard scamper. he puts crosby in field goal range. he missed an extra point and two field goals last week. all eyes on him. redemption. 33-30 nail biter. mason was speechless after the game. >> oh, man. oh, i don't know. that's obviously awesome game to bounce back. i was hoping i would get a chance to help the team win.

i can't say much. i'm broken up about it. >> deep breath. brewers two wins away from the first world series appearance in 36 years. ryan braun with a double in the first. they held the lead until the ninth. they faced jeffjeffers strikes out, but the brewers win. game four is in los angeles on our sister channel tbs. check this out. stop what you are doing for the best stuff you will see all day. >> throw it! >> oh, no.

>> it's okay. you're strong. >> now i want you to watch this. is this the best big brother ever? he sees his sister miss the hoop and lifts her up to let her score. >> not what happens in the briggs house. >> and when he says you're strong. it's okay. >> you're strong. >> that's right, christine. this is sarah ann moore posted this. my babies going viral with positivity and support and love. we don't see that as much as we like. that can brighten up your day. i wanted to share that with you. >> the power of sports. my son would reject my daughter. >> that's not true. thank you, coy. the secretary of state mike

pompeo in riyadh meeting with the saudi king and crown prince. the saudi explanation for the presumed death of the journalist is shifting. we are live in saudi arabia. can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. hi, my name is sam davis and i'm going to tell you about exciting plans available to anyone with medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs. these are affordable, all-in-one plans that help pay for doctor visits, hospital stays and emergency care. but they also

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the secretary of state is in riyadh at this hour meeting with the saudi king and crown prince to discuss the journalist was killed during an interrogation gone wrong. she owes the country an apology. >> president trump and elizabeth warren sparring after the distant native-american ties. residents have to wait another day before going back to the hardest hit part of the florida panhandle. and is a beer shortage enough to make you care about climate change? disturbing study. welcome back to "early start."

i'm christine romans. >> i'm dave briggs. three weeks to the midterms, but three weeks ago today is the last time jamal khashoggi was seen at the consulate in turkey. right now, secretary of state mike pompeo meeting with muhammad bin salman or mbs, after the meeting with the king. overnight, turkish investigators left the saudi consulate in istanbul after spending nine hours searching the building. >> the saudis are preparing a report according to cnn sources and expecting to announce his death over an unsanctioned interrogation gone awry. we have cnn correspondent sam kiley. sam, we first heard he left the embassy and now they didn't know anything and now they are prepared to admit something and announce he is dead. what do we know?

>> reporter: christine, let's give this a health warning and the sources are saying this is a statement that could change, not least perhaps following the meeting with mr. pompeo. since the weekend we have been hearing they are trying to fashion a form of narrative that does accept a degree of culpability for what did happen to khashoggi inside the consulate. the version that we heard or worked on is possibly in the words of donald trump, a rogue killer group or unsanctioned from the highest level group of officers were supposed to capture mr. khashoggi and bring him home here to saudi arabia to face the music. he, of course, being a critic of "the washington post" of the government here. and something went wrong. this was all carried out without the knowledge of the king or

crown prince. that is the version we heard, but it may change. nonetheless what is itreesing about -- what is intriguing about this, the crown prince had been the most powerful in the land until the recent events. this is the invention of king salman himself. being in semi retirement, but letting his son run things more on a day-to-day basis. took his intervention to change the narrative through 180 degrees, crihristine. >> international crisis, right? listen, sam, we've learned, cnn learned that saudi arabia was considering delaying the saudi conference until after the investigation. we have been reporting on the groups and executives which have dropped out. the treasury secretary is still

planning to attend. he is under a great deal of pressure to drop out. the saudis are under pressure to postpone the whole thing. >> reporter: yes, the saudis are looking at postponing it. there is an element of loss of face that would go with that. the american perspective haven't decided whether or not to come because saudi arabia, whatever went on inside that consulate, will remain a vital ally for investment in both directions. that is the world's biggest producer of oil. if they squeeze that oil tap, the economy shrinks. this is not a nation that can be pushed around. >> sam kiley in riyadh. thank you. the white house is still plotting the next move in response to the khashoggi's

apparent murder. president trump says he spoke to king salman on sunday and seems to be accepting his denials. >> the king firmly denied any knowledge of it. he didn't really know -- maybe i don't want to get into his mind. it sounded to me like maybe it could have been rogue killers. who knows? all i can do is report what he told me. he told me in a very firm way they had no knowledge of it. he said it very strongly. it sounded like he and also the crown prince had no knowledge. >> after that rogue killer theory, connecticut senator chris murphy accused the president of being the pr agent of the saudis. let's talk about this with princeton university historian julian zelizer. >> good morning. >> let's talk about what can be done. marco rubio says congress will

act. lindsey graham says there will be hell to pay if the saudis did this. the president seems to want to sweep it under the rug. what can be done? >> i don't expect much. there is a lot of international pressure to do something. the president doesn't seem interested in severing the alliance. this is critical for the middle east policy and it was before president trump was in office. it will take a lot to sever that. although this is a horrific act. >> we listen to the president with the sound bite and rogue killi killing. it is like a trial balloon of the events from the saudi arabia government came right through the president. that he was the one that leaked the trial balloon. >> it is like the helsinki moment for president trump. he reiterates the points of leaders accused of doing wrong.

he will do that pretty loosely. it is a remarkable part of his presidency. he does it consist tenially. it is a -- consistently. it is a way to deflect the bad things. >> he long had a complicated relationship with saudis. whether it is reagan or the 9/11 hijackers. this is so in your face. if, in fact, we do nothing, what is the message to fellow thin skinned rulers to ougautocratic leaders? >> the issue is we will do nothing. that is a second concern for the united states, not just for the administration. that is the message. that is how we get to this point. >> we have three weeks until the midterms? two weeks? >> three weeks. >> three weeks from today. we are talking about elizabeth warren's native-american

ancestry. listen to the president yesterday. >> what about -- >> she owes the country an apology. what is her percentage? 1/1000? >> the president says do you owe her an apology for the cracks of pocahontas. he said i'll give her $1 million if she takes a dna test. >> are the democrats in trouble here talking about this three weeks before the midterms? >> they sure are. this shows if you under estimate the ability of president trump to shape the debate, you are making a big mistake. here is one of the smartest senators, accomplished senators, starting her campaign, potent l potentially about a dna test and a question president trump has raised more than anyone else. this is a message for all democrats. they need to frame the debate. they need to be able to talk about the issues they care about otherwise they will be in trump

world over and over. >> don't get down in the mud is perhaps the message. hillary clinton is out there this week saying it was not abuse of power what her husband did with monica lewinsky. is she too herding the message with the female candidates running for office? >> that is not helpful. that was not a message when suburban educated female voters are probably going to be decisive in the races for the house. they will win or lose. >> p whwhat is the strategy of hillary clinton and elizabeth warren in the headlines this close to the races? >> i don't know if that is strategy. >> or lack of strategy. >> julian, thank you. secretary of defense james mattis made it clear he has never talked with president trump about leaving the administration. this comes after the "60

minutes" interview where president trump said he knows more about the nato than james mattis. the top commander of nato. overnight, mattis said this. >> i'm on his team. we have never talked about me leaving and you can see right here we're on our way. we just continue doing our job. >> mattis later told reporters he and the president spoke each saying they are 100% with each other. cnn reported on june of differences between donald trump and mattis leading to friction. condolences are pouring in for paul allen. he died monday at 65 from complications of non-hodgkin's lymphoma. he launched microsoft with bill gates when they met in 1975. he left the company in 1982 when he was diagnosed. gates remembers his partner and friend and personal computing

would not exist without him. >> allen remained on the board as he launched his foundation and investment firm. he bought the portland trailblazers and seattle seahawks. russell wilson said we lost a friend and giant. mr. allen, thank you for believing in all of us. by your example, you made us all better. he was a legend in the sports world. a part owner of the seattle soccer franchise the timbers. >> to think of the idea everybody at work would have a personal computer on their desk. unheard of. and you have one at home. unheard of. >> up there with steve jobs. 42 minutes past the hour. drugmakers may have to disclose prices in tv ads. will this help keep costs under control? making my dreams a reality

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president trump and first lady see the devastation left by hurricane michael. they handed out water to victims in the panhandle and met with hard hit farmers in georgia. the president seemingly in awe of michael's power. >> to see this personally is very tough. very, very tough. total devastation. >> death toll from hurricane michael now stands at 19 in four states. a body found monday in mexico beach. the number of people missing dropped from more than 30 to just 3. crews finishing the third and final sweep of the area using cadaver dogs. mexico beach residents can return tomorrow, but not stay

there. there is a curfew in place. more than 30,000 customers without power in stifling heat. schools closed in washington, liberty, jackson and franklin and calhoun and bay counties. much of mexico beach obliterated by hurricane michael, one structure is still standing. the four-story home is largely in tact after the storm. the home will need some repairs. "the new york times" reports the palace was able to withstand the big one able to stand 250-mile-an-hour winds. the owners will be on "new day" later this morning. to cnn business. the industry is pushing back and the trump administration announcing a federal rule enforcing drugmakers to list prices over prescriptions

covered by medicaid and medicare. >> patients deserve to know what a given drug could cost when told about the benefits and risks it may have. they deserve to know if the drug company has pushed their prices to abusive levels and they deserve to know this every time they see a drug advertised to them on tv. but placing information on a web site is not the same as putting it in an ad. >> hours before the secretary's speech, the industry preempted this and said it would voluntarily include prices if ads. instead -- in ads. instead of that, they would list the prices in web sites. they don't take into account rebates and discounts. aza rer azar says this is incentive. this is the boldest move to curb drug spending. prescription drugs will cost 6%

to 10 po% more in the next ten years. wall street failed to bounce back monday from the rout last week. last week all three indices lost 4%. investors worried about higher interest rates and earnings could not give the stocks a boost. investors hope for another quarter of double digit profit glob growth. we expect to hear from united and johnson & john sson this we. google may still launch a censored version of the search engine in china. the pr chairman said this is something important to explore. this is a controversial and secret project announced last month. 1,000 google employees asked for

transparency about the project. the prospect of google in china fueled outrage from human rights groups. some have bowed to chinese pressure. u.s. airlines no longer shows taiwan as a separate country. caving to the demands of the chinese government. imagine this happening to your airplane. renewed concern about drones after tests show the bigger aircraft may not always win. 300 miles an hour,

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releasing names of 31 clergy members accused of abusing minors. 18 of them have previously been arrested. the list includes three priests serving in parishes or schools. this comes four days after pope francis accepted the resignation of cardinal wuerl for his handling of sex abuse cases. this year, more than half of states dealing with polio-like illnesses. 18 confirmed cases of afm. 17 states have cases being investigated. afm symptoms are weakness and facial drooping. three african-american mrs. america contestants say the white ceo david marme lerks

insuin -- marmel insulted them with the "n" word. the contestants say they have no plans to sue, but want an apology and assurances no one else will face the same treatment. david marmel tells cnn he was blind sided by the statements. bordering on reverse d discrimination. new study shows large aircraft will not always win during a collision with a drone. a test shows that bigger may not always be better. in the test, the drone did not shatter on impact, but tore open an aircraft wing. the lead researcher says the

hobby droen ine increases and t increases the risk of catastrophic events. and a new study published in the "nature" shows climate change causes a beer shortage. barley is subject to heat and drought. the prices of beer could double on average. it is compared to a garbage truck for the ocean. the floating pipe nicknamed wilson is scooping up debris in the ocean. the clean up foundation says the pipe will float around with a skirt trapping floating plastic. wilson will transit the position via satellite. it will transmit 60 wilsons in the next decade. time for the office pool. the megamillions is $654

million. if you choose the lump sum, $372 million. this is the second largest in the game's history. >> there's another 3$354 millio up for grabs in the powerball drawing tomorrow night. that is a first. i'm in. i'm christine romans. >> i'm dave briggs. "new day" starts right now. rogue killers. who knows? >> i don't think rogue actors is a good enough explanation. >> they intend to say that khashoggi was killed during an interrogation gone wrong. >> you don't get the benefit of the doubt when you take two weeks to develop your cover story. i've got more indian blood in me than pocahontas and i have none. >> the problem with the dna test is that it proves nothing of relevance. >> she's put to rest his nickname