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Early Start with John Berman and Zoraida Sambolin

ISIS Threat in Iraq, Syria; New Clues About Second American Terrorist; NATO Emergency Meeting; Gas Prices Lowest Since Labor Day 2010

Aired August 29, 2014 - 04:30   ET

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


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CHRISTINE ROMANS, CNN ANCHOR: Happening now, ISIS gaining ground slaughtering hundreds of Syrian soldiers. Just the latest in a string of brutal executions.

This morning, the U.S. with no clear strategy on how to take down the terror group in Syria as it moves through Syria and Iraq, even recruiting here at home. We are live in Iraq with the very latest.

JOHN BERMAN, CNN ANCHOR: Ukraine under attack. Russia is sending tanks and troops into the country arming rebels fighting Ukraine's military and fighting Ukraine's military itself.

This as world leaders hold an emergency meeting about this crisis. Is there anything now that they can do to stop Russian President Vladimir Putin? We have live team coverage ahead.

Welcome back to EARLY START, everyone. A lot going on. I'm John Berman.

ROMANS: I'm Christine Romans. It's 30 minutes past the hour. More evidence this morning of the ISIS reign of terror in Iraq and Syria. President Obama admits he has no strategy for taking on the militants yet there. He dispatched Secretary of State Kerry to build support. The president says that's a critical element in removing the ISIS threat.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: As I said, ruling out a cancer like ISIL will not be quick or easy. I'm confident we can and we will working closely with allies and partners. It will be important for Congress to weigh in.

And our consultations with Congress continue to develop so that the American people are part of the debate. But, I don't want to put the cart before the horse. We don't have a strategy, yet.

(END VIDEO CLIP)

ROMANS: Meantime, ISIS militants claimed to have carried out a mass execution in Syria and they release a video to prove it. CNN's Anna Coren is live in Erbil, Iraq. These pictures are just terrifying and they show I think how disciplined these terrorists are on the battlefield, but they do not abide by the rules of war.

ANNA COREN, CNN CORRESPONDENT: There are no rules as far as ISIS is concerned, Christine. This video displays just that. No moral code, no code of conduct, no respect for prisons of war. They claimed to have captured 250 Syrian soldiers from the military base after the battle they waged over the past week.

We see in this video, this ISIS video, soldiers stripped to their underwear, most of them with their hands by their head marching through the desert while ISIS militants are on their phones filming them.

The next piece of video is a pile of bloody bodies. The camera then turns around and you see a scene of body after body after body. It is so sickening. These soldiers face down in the dirt having been executed. We have seen these types of videos before, Christine.

But to see these soldiers that they have captured on the battlefield, to then execute them like this is just sheer brutality. It's cruelty. They have no mercy, what so ever for their enemy. Shortly after that video was posted on the internet came another ISIS video.

This time, showing captured Kurdish forces wearing orange jump suits, the same worn by James Foley, the American journalist who was brutally executed in the video last week.

One of them makes an appeal to their president here in Kurdistan to stop working with the United States, allowing these U.S. air strikes to happen here in Iraq.

The video ends showing one of the soldiers, one of the prisoners on his knees in front of a mosque in Mosul, Iraq's second largest city seized by ISIS back in June, out in broad daylight, standing above him these three militants.

One with a knife, holds his head, grabs him by the scruff of the hair executes him, beheads him. It is horrific to watch. As we have been talking about it, just defines the way that ISIS now operates.

ROMANS: All right, Anna Coren in Erbil, Iraq. Just really troubling of how dangerous and deadly this group is. Thank you.

BERMAN: This morning, we are learning about the man who could be the second American killed fighting for ISIS this week. The family of Abdurakmaan Muhamed says he was killed over the weekend during terrorist clashes in Syria.

CNN is still waiting on government officials to confirm that U.S. man's identity. Meanwhile, friends of the Minnesota father of nine said his change to radicalism and his sudden move to the Middle East came out of nowhere.

We've also been told about a one-time friend of Douglas McCain who was killed fighting for ISIS. His one-time best friend and Minnesota classmate, Troy Kastigar, was killed fighting for the Al-Shabaab terror group in Somalia back in 2009.

CNN spoke with his mother who still, after five years after her son's death is struggling with the loss.

(BEGIN VIDEO CLIP)

JOSIE BOADA, MOTHER OF TROY KASTIGAR: I don't easily talk about it with people because I don't want to have to also defend him. My family is great, and my friends are great, but just in general, in the world. I mean, it is, it's the hardest, the hardest loss that there is. I'm really grateful that I had him and that I knew Doug.

(END VIDEO CLIP)

BERMAN: Insiders say ISIS is recruiting people from the twin cities because that state's large Somali population. The terrorists are targeting young, disaffected men in Minnesota by using recruitment videos. At least 100 Americans have left the country to take up arms alongside militant extremists inside Syria.

ROMANS: President Obama pointing a finger at Russia for its brazen action in Ukraine saying Moscow is responsible for fueling the civil war. The military officials say it's a full-scale invasion. Another front, a new front in Southern Ukraine.

Despite Russia's denials, the U.S. and NATO say there is evidence 1,000 troops or more crossed into Ukraine. For his part, Russian President Vladimir Putin insists the Russians in Ukraine are volunteers.

CNN's Matthew Chance is following developments. He is live in Moscow. Volunteers. People on vacation who happen to have Russian arms and heavy military vacationing and invading Ukraine, is that the explanation?

MATTHEW CHANCE, CNN CORRESPONDENT: That's the latest explanation that came out as to why the satellite images released by NATO show military presence from Russia. Apparently, inside Eastern Ukraine.

Ten Russian paratroopers were captured. In the explanation as to how the pro-Russian rebels in Eastern Ukraine made such dramatic military gains against the Ukrainian government over the course of the past couple of weeks.

It's, I suppose, plausible deniability although how plausible is up for question. Nevertheless, it is the official position of the Russia at the moment. They are not sending troops into Ukraine.

The rebel leaders say any troops that are there are there purely of their own accord, taking advantage of their leave time, dying for the cause of the separatists in Eastern Ukraine -- Christine.

ROMANS: How is the Ukrainian government doing in holding back these troops? What is the situation? Is there open conflict? CHANCE: There is open conflict in which 2,000 people have been killed since the beginning of hostilities earlier this year. The past couple months, the government forces have made considerable gains against the rebels.

But, what appears to have happened is that, you know, when they are on the brink of defeat, as it were, the rebels gained assistance in the form of vacationers, the temporary movements of Russian troops.

That seems to have reversed the equation on the battlefield. Serious advances in Ukraine recently, rebels taking over a town on the road toward Crimea. There have been dramatic gains at the hands of the Russian, the pro-Russian rebels over the course of the past couple days.

ROMANS: Matthew Chance for us this morning in Moscow, thank you.

The situation in Ukraine prompting NATO to call an emergency meeting. CNN's Karl Penhaul is going to more on that. We have more in about 10 minutes.

It's 38 minutes after the hour. Time for an EARLY START on your money. European stocks higher this morning. Asian shares are mixed. U.S. stocks are pointing higher. Yesterday, the S&P 500 ended lower after three days of record closes.

Malaysia Airlines slashing jobs. They cut 6,000 jobs, 30 percent reduction in the work force. It's part of an overhaul of two major disasters this year. The government owns 70 percent of Malaysia Airlines. Plans to purchase the rest, take the company private.

The airline obviously was in trouble before this year's tragedies. It reported a $97 million loss last quarter. People have been tweeting pictures of almost empty jets. It's been a real problem for the airline, but they are going to try to take it private.

BERMAN: Tough to do business in that economy.

ROMANS: Sure is.

BERMAN: Comedian Joan Rivers in critical condition this morning. Rushed to a New York hospital after she stopped breathing. What her family said overnight ahead.

ROMANS: Plus Tony Stewart returning to racing weeks after he hit a competitor on the track. That story right after the break.

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BERMAN: Joan Rivers in critical but stable condition in a New York City hospital. The 81-year-old was rushed there on Thursday after she stopped breathing during outpatient surgical procedure on her throat. She went into cardiac arrest. Her daughter, Melissa, says she is resting and thanks everyone for the overwhelming love and support.

ROMANS: Now to the latest in the Michael Brown shooting. The audio recording that apparently captured the very moment police opened fire on him has been authenticated by a streaming app company called "Glide."

The company says the recording was created at the time the unarmed Missouri teenager was killed this month. It bolsters a man's claim that inadvertently recorded audio of the shooting. Seeking $40 million in damages. They allege their civil rights were violated.

BERMAN: No criminal charges in that Arizona gun range incident where a 9-year-old girl fatally shot her instructor with an Uzi. The 39- year-old Charles Vacca was killed when the automatic weapon recoiled in the arms of the 9-year-old spraying bullets everywhere.

The incident has sparked really a national debate over young children handling firearms. On Thursday, Hillary Clinton weighed calling the incident heart breaking and horrifying.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, FORMER SECRETARY OF STATE: What 9-year-old little girl is strong enough to manage an Uzi submachine gun, which is apparently what it was, you know, the kick, the effort to control it. I mean, that's just the height of irresponsibility, to say nothing of the choice of letting your child do that.

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BERMAN: The instructor's family is, of course, grief stricken. His widow says their kids are taking it very, very hard.

ROMANS: All right, Israeli police say a body found in a forest near Jerusalem is that of missing American Aaron Sofer. The 23-year-old disappeared last week while hiking with a friend. The student from New Jersey was studying in Israel. Police investigators have yet to determine the cause of death. His family believes it was accidental and no foul play was involved.

BERMAN: Jurors in the federal corruption trial of former Virginia Governor Bob McDonnell and his wife, Maureen, are set to hear closing arguments today. The McDonnells are accused of taking $155,000 of gifts and loans in exchange for promoting a dietary supplement. Their marriage was so broken they could not communicate let alone conspire on anything. They could face years in prison if convicted.

ROMANS: Driver, Tony Stewart returns to Sprint Cup competition Sunday night at the Atlanta motor speedway. The three-time NASCAR champ has not raced since his car struck and killed, fellow driver, Kevin Ward Jr. during a dirt track race in upstate New York earlier this month. Police found no evidence of criminal wrong doing on Stewart's part. That investigation is ongoing.

ROMANS: Heavy rain in Texas triggering flash floods leading to this scene in Lubbock, Texas. Fire crews needed a ladder truck to rescue a driver after his car was nearly submerged in the rising floodwaters.

BERMAN: Let's get an early look at the weather now. Chad Myers is here.

CHAD MYERS, AMS METEOROLOGIST: Good morning. Happy Friday. Very pleasant across the northeast. Few travel problems today. Maybe a couple showers in the afternoon kicking up. High pressure, sunshine, clear skies, 79 is the high in New York, 85 in D.C., 94 in Memphis where it's going to be warmer.

A couple of showers across the Florida peninsula later on this afternoon like every day in the summer. The big story tomorrow is the weather through the middle part of the country from Ontario all the way down even into Toronto and into Texas.

We will see scattered showers and thunderstorms throughout the afternoon. High pressure in control of the west. Warming up a little bit here into Memphis at 89. Because of the cloud cover, keeping you cooler than today tomorrow.

But we will see the humidity through the day, 95 in Dallas, 96 in El Paso, and 86 in Houston. Have a great weekend. Back to you.

ROMANS: Yes, you too, Chad. Thanks.

BERMAN: All right, happening now, a Russian invasion of Ukraine. World leaders holding an emergency meeting. Can anything be done to stop the Russian troops and Russian President Vladimir Putin? We are live after the break.

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BERMAN: Welcome back to EARLY START, everyone. NATO minister meeting in an emergency session this morning. It's prompted by new evidence of the military advance in Ukraine. United State and NATO blaming Moscow for the escalation of hostilities between Ukraine's government and the pro-Russian separatists.

CNN's Karl Penhaul is live in London for us. Karl, NATO coming forward with these new satellite images.

KARL PENHAUL, CNN CORRESPONDENT: Absolutely, John. Those NATO members are meeting right now, talking to representatives of Ukraine's government as well. We are expecting some kind of statement in under 45 minutes from now.

As you say, they are pouring over these new satellite images the NATO commander showing more than 1,000 Russian combat troops now inside of Ukraine backed by heavy weaponry including artillery pieces.

Now, of course, added to that in the last few days, separatist leaders in the Eastern Ukraine have also said that up to 4,000 other Russian troops on vacation have volunteered to help the separatists.

This of course adds to the Ukrainian government is now calling it a full-scale invasion. NATO and other western leaders are referring it more of an incursion by the Russians.

But the big question now, what can NATO do to stop the Russians in their tracks? Of course, Ukraine is not a member state of NATO. NATO can't invoke the self-defense clause and take some kind of military action right now.

Also, there's a growing sense that since the spring, Russian President Putin has been playing his cards very stealthily. Remember back in March, there were some 90,000 Russian troops supposed to be on that border.

He then stood a lot of those troops down. He offered peace talks and then at the same time was moving weaponry around. So there is this growing sense that Putin has been outfoxing the western powers on this front.

So the question now remains, will further sanctions stop him or some tougher action have to be taken, John?

BERMAN: What do you do because the sanctions, they've already leveled, Karl, clearly haven't stopped him or stopped Russia from these troop movements. There are real challenges ahead for NATO as they have their session today and the leaders meet next week in Wales.

Karl Penhaul for us in London, thanks so much.

ROMANS: This morning, the U.N. trying to secure the release of dozens of peacekeepers working in the Golan Heights, who were kidnapped by militants fighting the Syrian Army, 43 U.N. peace keepers were seized. Another 81 trapped in the region bordering Syria and Israel. The peacekeepers involved are from the Philippines and Fiji.

All right, a Labor Day weekend perfect for a road trip. We'll explain why when we get an EARLY START on your money, next.

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ROMANS: Let's get an EARLY START on your money this Friday morning, European stocks higher right now. This is the last trading of August. European stocks are now up for the month. That means the first monthly gain since May.

Asian shares ended mixed. U.S. stock futures also is pointing higher right now. Yesterday, the S&P 500 ended a three-day winning streak, closed below 2,000. But if futures hold this morning, it looks like stocks could rally today.

Advanced technology infiltrating our banks. The person who analyse the attack on JPMorgan and other major banks says hackers used very sophisticated, never before seen malware. The banking industry, one of the most protected industries in the world.

Hackers though able to breakthrough and steal large amounts of data. No word on who was responsible. Many experts pointing the finger at Russia and even to the Russian government.

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JAMES LEWIS, DIRECTOR, STRATEGIC TECHNOLOGIES AT CSIS: You can get away with something without the Russian government knowing it is just completely wrong. Sure, the Russian government knows what they are doing, they tolerate it and maybe in this case, encouraging it. In the past, they have used hacking as a tool for political coercion, to put pressure on the people they are mad at like the U.S. for its actions.

(END VIDEO CLIP)

ROMANS: So far JPMorgan says there are no increased signs of fraud with all of that information that was stolen. The investigation by the FBI continues.

It could be the least expensive holiday weekend in years at the pump. Gas prices are the lowest since Labor Day of 2010. Gas prices started falling in July. They are expected to fall lower in the fall. Crude oil has fallen despite the turmoil in the Middle East and in Russia.

So that's good news. I won't tell you about the price of beef for your grill, but the price of gas is something to be happy about.

BERMAN: I think people appreciate it. It's nice to get the news when it's going down. EARLY START continues right now.

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