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Early Start with John Berman and Zoraida Sambolin

American Jihadist Dies Fighting with ISIS; Freed American Hostage Back in the U.S.; Silence Over Gaza

Aired August 27, 2014 - 04:00   ET

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


CHRISTINE ROMANS, CNN ANCHOR: An American jihadist killed fighting in Syria. U.S. intelligence confirming the Chicago-born man died fighting with ISIS. This morning, what we're learning about Douglas McCain. As President Obama faces increasing pressure to go after the Islamic terrorist group before it's too late.

We're live in Iraq with the latest.

JOHN BERMAN, CNN ANCHOR: Breaking overnight: an American journalist held by terrorists for nearly two years back at home. What he is now saying this morning, ahead.

ROMANS: Silence over Gaza. Israel and Hamas agreeing to a cease-fire for now. Is there any hope for a long-lasting peace?

We're live in Jerusalem with the latest.

Good morning, everyone. Welcome to EARLY START. I'm Christine Romans.

BERMAN: I'm John Berman. It is, in fact, early. It is Wednesday, August 27th, 4:00 a.m. in the East.

And we do want to welcome our viewers here in the United States and around the world.

Up first, the death of an American jihadist who is fighting alongside ISIS extremist in Syria. Thirty-three-year-old Douglas McArthur McCain was killed a during battle between rival groups near the city of Aleppo. McCain converted to Islam 10 years ago and over the course of that time apparently became radicalized. He is not the first American to join militants in Syria. U.S. officials estimate there are dozens, perhaps as many as 100 who have tried to join various militant groups there.

Let's get more on this from CNN's Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: John and Christine, the American Douglas McArthur McCain killed in Syria, said to be fighting alongside ISIS. His family notified by the U.S. government, telling our Jim Sciutto they had not known that he was in Syria fighting as part of the war going on there. U.S. counterterrorism officials say he was one of the Americans they

were keeping an eye on, that they were investigating for possibly joining militant groups. And if he had attempted to travel at any point perhaps come back to the United States, he would have been subject to additional scrutiny.

So, what about U.S. airstrikes in Syria? What about the next step there? Well, by all accounts, U.S. reconnaissance flights are flying along the border, staying for now on this side of the Iraqi side of the border, but having to look into Syria, trying to determine any location of potential ISIS targets that they can.

The real question, of course, is whether President Obama will take the next step and order airstrikes in Syria. But there is some concern at the Pentagon about the law of unintended consequences. U.S. airstrikes in Syria could actually benefit Syrian President Bashar al Assad whose forces are also battling ISIS -- John, Christine.

(END VIDEOTAPE)

ROMANS: A very are complicated situation, no question. Douglas McCain grew up in Minnesota. As Barbara mentioned, his family didn't know what he was doing until the State Department told them he was dead.

McCain's cousin can't believe that he's gone or what's being said about him.

(BEGIN VIDEO CLIP)

KENYATA MCCAIN, DOUGLAS MCCAIN'S COUSIN: This has been my whole attitude, like he's not dead. My second thinking was, you know, why was he in Syria? I feel like maybe it was people he was hanging out with, because that's not who he is.

He's not ISIS. He's not a terrorist. He's a happy person. He's close with family. You know, very close to his mom and to his child, like, I don't believe it.

(END VIDEO CLIP)

ROMANS: And despite the evidence, McCain's cousin says the idea that he was a jihadist is ludicrous.

President Obama has essentially put ISIS on notice. Right now, he's weighing options for possible military action in Syria after authorizing surveillance to gather intelligence on these extremist targets inside the country.

U.S. officials admit it will take more than just airstrikes to defeat ISIS.

(BEGIN VIDEO CLIP)

MARIE HARF, DEPUTY STATE DEPARTMENT SPOKESPERSON: There's not a military solution entirely to the ISIS problem. Obviously, we have to take the fight to them. We're doing that in Iraq. But we need to cut off their funding. We need to cut off the flow of foreign fighters.

We need an inclusive government in Iraq to come together and really push them out of Iraq. All of these pieces need to be a part of the strategy in the long term.

(END VIDEO CLIP)

ROMANS: U.S. airstrikes have already hit ISIS hard in Iraq, slowing its advance in the northern part of the country.

BERMAN: We got some breaking news from overnight. Freed American journalist Peter Theo Curtis is back on U.S. soil. I want to show you a picture of Curtis as he's being reunited with his mother in Boston. There's the picture right there. He was released this past Sunday after being held for nearly two years by Islamic militants in Syria.

Curtis released this statement saying, "I've been so touched and moved beyond all words by the people who have come up to me today, strangers on the airplane, the flight attendants and most of all, my family to say, welcome home. I'm also deeply indebted to the U.S. officials who have worked on the case. I especially want to thank the government of Qatar for intervening on my behalf."

His mother said she is tempered by the fact that so many more are still being held captive.

(BEGIN VIDEO CLIP)

NANCY CURTIS, MOTHER OF PETER THEO CURTIS: I don't think anybody is in the mood for celebration. You know, we're relieved. But after the events of the past week and knowing that those other children of my friends are in danger -- you know, I do have very conflicting emotions.

(END VIDEO CLIP)

BERMAN: Nancy Curtis is appealing to the media to give that family privacy while Theo adjusts to being home.

ROMANS: Let's bring in CNN's Anna Coren, who's live in Irbil, Iraq, for us this morning.

Anna, it's been just sort of a deadly few days in Iraq -- really, a deadly few weeks in Iraq. What can you tell us?

ANNA COREN, CNN CORRESPONDENT: Yes. Well, certainly there have been many, many attacks, that this is what ISIS does. Not only are they trying to advance across the battlefield, but they are taking the fight to the cities like we saw in Kirkuk and Baghdad over the last few days, those suicide bombings, those car bombings.

But without a doubt, the U.S. airstrikes are slowing down that advance. There have been 98 U.S. airstrikes today. Obviously, focused around Mosul dam that very important piece of infrastructure that is under control of Kurdish forces. But ISIS is still trying to, I guess, do what it can to regain

control. Certainly around here, Irbil, the capital of Kurdistan, there are airstrikes as well.

You know, ISIS is not retreating anytime soon. We were down in Kirkuk yesterday. Which is the next city that many feel is under threat from ISIS. We spoke to officials who believe there are sleeper cells in that city which obviously is very valuable because of all the oil fields.

They've had many arrests of ISIS militants over the past two months. They arrested a very powerful emir who was there trying to recruit the young disaffected Sunnis who they believe will join their jihad.

These U.S. airstrikes slowing them down, but certainly not stopping them, Christine.

ROMANS: All right. Anna Coren for us this morning in Irbil, Iraq -- thanks, Anna.

President Obama touting a new culture of accountability in this country at the V.A., under its new leadership.

The president telling veterans at the American Legion Convention in Charlotte Tuesday that reforms in the V.A. system are under way, and there will be consequences for past abuses.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The misconduct we've seen at too many facilities, with long wait times and veterans denied care, folks cooking the books, is outrageous and inexcusable.

(END VIDEO CLIP)

ROMANS: Among the executive actions announced, filling the shortage of doctors and nurses at V.A. hospitals. The new veterans affairs secretary said recruiting is job one.

BERMAN: Listen to this statement, the Ebola virus now has the upper hand in West Africa. That warning coming from the head of the Centers for Disease Control who is visiting Liberia, Guinea, and Sierra Leone, three of the countries hardest hit by that virus.

Hear what Dr. Thomas Frieden is now saying.

(BEGIN VIDEO CLIP)

DR. THOMAS FRIEDEN, CDC DIRECTOR (via telephone): This is an absolute emergency. We have never seen anything on this scale with Ebola before. And, unfortunately, it's going to get worse before it gets better. We've not yet turned the tide. The outbreak ahead is our response. And the critical block now is getting treatment centers up around the country as rapidly as possible but ensuring safety at all steps.

(END VIDEO CLIP)

BERMAN: I'd say that's pretty alarming right there from a guy who knows this business. The numbers are so frightening. According to the World Health Organization, 1,400 people have died from Ebola, 2,600 have been affected just since March. The WHO has now removed its Ebola response team from the region of Sierra Leone after a medical worker contracted Ebola.

And a British nurse exposed to the virus while working with patients in West Africa is being treated with the experimental drug ZMapp.

ROMANS: All right. The General Motors compensation program set up to address faulty ignition switch claims has now received 309 such claims so far, including 107 related to fatal accidents. Officials overseeing that program for GM say payments to victims and their families will be finalized by the end of September. This is expected to cost GM hundreds of millions of dollars. The faulty ignition switches have been linked to at least 13 deaths, and dozens of crashes.

Time for an EARLY START in your money.

The stock market keeps climbing.

BERMAN: Oh, yes.

ROMANS: The future is pointing slightly higher this morning. It could mean a third record day in the row for stocks.

The S&P 500 closed above 2,000 for the first time ever yesterday, the 30th record close of the year. This has been, John Berman, the best August for stocks since the year 2000.

BERMAN: Wow.

ROMANS: Stocks have been be climbing for the last three weeks and strong corporate earnings and signs the economy is improving.

Snapchat could be worth $10 billion. That's right. Snapchat is that disappearing message app that's popular with teens. I don't know why they want their message disappears.

"The Wall Street Journal" is reporting a venture capital firm has agreed to invest in the app. The evaluation is close to $10 billion. That would make it one of the world's most valuable tech startups, even though it makes no money.

BERMAN: Even though it makes no money.

ROMANS: Yes, the company valued at about $2 billion just a year ago, turned down a $3 billion buyout offer from Facebook. Now, this latest round of funding we're told, "Wall Street Journal" reports put it at $10 million.

BERMAN: It's encouraging for all the people out there who make no money. You, too, could be worth $10 billion. ROMANS: You make no money and your text disappears. There's money in that.

BERMAN: All right. Ten minutes after the hour for us right now.

Happening right now: a new truce in Gaza. Israel and Hamas agreeing to an expansive cease-fire, indefinite cease-fire. But will it last? What is inside the deal? We're live in Jerusalem with the latest this morning.

Plus, the FBI analyzing a new audio recording claiming to capture the moment police shot and killed unarmed teenager Michael Brown. But how will they determine if it's real or a hoax? One expert explains, after the break.

(COMMERCIAL BREAK)

BERMAN: All right. The word of Israel and Hamas agreeing to an expanded ceasefire set off celebratory gunfire in Gaza, which has been battered by seven weeks of war.

Now, unlike the other ceasefires announced in recent weeks, this one has no expiration date. This one seemed different. Both sides have agreed to further peace talks in Cairo as well.

CNN's Ben Wedeman is live in Jerusalem.

We see those celebrations inside Gaza. You know, what's the reaction where you are, Ben?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, among Israelis, John, the reaction is much more muted. There's a feeling that after 50 days of this conflict with Gaza, very little has actually changed. Many Israelis, particularly those living in the communities around Gaza, feeling that Hamas has not been disabled, that really up to the last moment, Hamas was able to fire into Israel.

In fact, one Israeli, a 50-year-old man was killed just minutes before that cease-fire -- now, we're 16 hours into it -- went into effect and another Israeli died a few hours later from wounds sustained by a mortar attack, the same mortar attack. So, for many Israelis, there's a feeling that nothing has really changed.

Now, I did speak to one senior Israeli official who pointed out Israel had succeed in destroying many of Hamas' rockets when this war began. They had, according to Israeli intelligence, around 10,000 missiles. Now, they say they have only 2,000 left. This Israeli official claimed that they killed as many as 1,000 militants from various Gaza factions.

But nonetheless, on the political side, there are already recriminations by members of the opposition. And also members of Prime Minister Benjamin Netanyahu's governing coalition, saying that this was a mistake, that nothing was achieved. There are already suggestions that early elections should be called.

We did see yesterday an opinion poll that found that Netanyahu's approval rating had fallen by almost 50 percent.

So, among Israelis there is no feels that there's much to celebrate now that this cease-fire has gone into effect -- John.

BERMAN: A 40-year history of the Israeli prime minister suffering politically after wars. Of course, there's also a tremendous amount of suffering inside Gaza, too. They gained too late after seven weeks of fighting as well.

Ben Wedeman for us in Jerusalem -- thanks so much.

ROMANS: The protests over the shooting of Michael Brown resumed Tuesday, more than a hundred demonstrators marched to the federal court house in St. Louis. A small group of peaceful protesters marched in Ferguson. Organizers say the march was to promote healing for that community.

The latest protests come as the FBI is evaluating a possible audio recording of the shooting. CNN cannot independently confirm if the shots heard on this cell phone recording were from the confrontation between Brown and Officer Darren Wilson.

Forensic audio expert Paul Ginsberg explained to CNN how they can determine if the recording is genuine.

(BEGIN VIDEO CLIP)

PETER GINSBERG, AUDIO EXPERT: I would like to do an acoustic test that is, go to the person's residence where this was recorded. Ask him whether the window was open or shut, in which direction he was facing, how did he have the iPad or the iPhone situated? And then at the shooting location have people test fire, in the same direction with the same type of weapon so as to see what we hear, and at what level. That would give us an idea of whether it's authentic.

(END VIDEO CLIP)

ROMANS: Prosecutors say it may take until October to present the evidence in this case to the grand jury.

BERMAN: Several aftershocks have rocked parts of Northern California following Sunday's 6.0 earthquake. At least 65 aftershocks have rattled Napa County and surrounding areas. Sunday's quake injured more than 100 people. One teen survivor nearly crushed after bricks in a fireplace collapsed on him and fractured his pelvis. He's speaking out about the ordeal.

(BEGIN VIDEO CLIP)

NICHOLAS DILLON, EARTHQUAKE VICTIM: I did have moments where I start screaming because it felt like it was forever just laying on the floor. I didn't -- I didn't think the paramedics were going to come out. So, my grandfather just wanted to pick me up and take me to the hospital. But they told me, no, no, leave him. I had all of them rushing in with lights and looking at me and screaming.

(END VIDEO CLIP)

BERMAN: Experts say the quakes could continue for several more days. I have to say, if you've ever been in an earthquake after a bad quake, there's nothing more unnerving than the aftershocks. Really, it's so distressing. You're fragile already, you're recovering --