Screen apparently does some horrible TERM mangling and breaks a lot of colour-based terminals. There's a thread about this on one of the freebsd-stable@ mailing lists last month with some in-depth analysis of just how crappy screen's TERM handling really is (Subject: "csh Cannot open /etc/termcap after starting "screen"")
If you want a good, solid, working, non-TERM-mangling multiplexer, which much nicer default features than screen, then switch to tmux.
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