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Early Start with John Berman and Zoraida Sambolin

Jerusalem Synagogue Terror Attack; Two ISIS Hostages Remain; ISIS Victim's Parents Speak Out; Another Frigid Blast; S&P 500 Has Another Record Day; Ferguson State of Emergency; Christie Warns Against Government Shutdown; S&P 500 Has Another Record Day

Aired November 18, 2014 - 05:30   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: Breaking overnight, the Israeli prime minister calling the deadly attack at the synagogue cruel murder. Vowing Israel will respond harshly to this terror attack. We are live from Jerusalem.

The growing unease, the embattled town of Ferguson, Missouri, unsettled as the state governor declares a precautionary state of emergency. Does this help or cause more tension as we wait for the grand jury decision to indict Officer Darren Wilson in Michael Brown's death?

Prayers and privacy, the parents of the American beheaded in the latest ISIS video are begging for time to grieve as an American woman is identified as another hostage of this militant group. What President Obama wants to do now to save our people from the hands of terrorists?

Welcome back to EARLY START. I'm Christine Romans. It's 30 minutes past the hour this Tuesday morning. There is breaking news this hour, a terror attack in a Jerusalem synagogue. Four people killed, six others wounded. Two knife and ax-wielding men broke into that temple.

The assailants identified as Palestinians. They were shot and killed at the scene by Israeli troops. Joining us now live with the very latest is CNN's Ben Wedeman in Jerusalem for us -- Ben.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Christine, this attack took place before 7:00 local time. That's about five hours ago in the neighborhood west of the center of the city. People gathered for morning prayers when these two individuals identified as (inaudible) from the neighborhood of East Jerusalem.

They entered the building and they had knives and appeared to have had meat cleavers and a handgun according to the Israeli police. They entered the synagogue where people were praying and began to attack people, left four dead, three were apparently within the room where they were praying.

One was killed in the corridor. Now within minutes, apparently according to some Israeli media, just 7 minutes Israeli police arrived on the scene. We have seen video of some of them right outside the synagogue shooting at what appeared to be the attackers.

They shot them both dead on the scene. What we saw afterwards were many angry Israelis coming to protest against the attacks and call for the death of all terrorists.

The Israeli prime minister saying Israel will use a firm hand against the attackers. Now we understand the Israeli Security Forces have gone to the homes of these two Palestinian residents of East Jerusalem where there have been clashes with local residents.

Nine people, according to the Israeli police have been arrested in the course of those clashes which are ongoing at the moment -- Christine.

ROMANS: Ben Wedeman for us this morning with those new developments, thank you, Ben.

Turning now to the battle against ISIS, the Islamic terror group's beheading of American aid worker, Peter Kassig, leaves just two known western hostages. One is British journalist John Cantlie who has appeared in several ISIS propaganda videos apparently under duress. The other is a 26-year-old woman.

We have CNN's Erin McLaughlin joining us live now from London with more on this. You know, this most recent video showing the beheading or aftermath of the beheading of Peter Kassig, it didn't name the next victim.

That's a departure for ISIS. It shows a change in strategy. The video was different in a lot of ways. We know there are these two western hostages still in ISIS hands.

ERIN MCLAUGHLIN, CNN CORRESPONDENT: That's right, Christine. We do not know what their condition is. We know that one of those hostages as you say is British photojournalist, John Cantlie. He appeared in a number of ISIS videos as a propaganda tool.

Most recently a video released in late October apparently from the Syrian city of Kobani. As for the other hostage, or known western hostage, an American citizen. An American aid worker according to media reports was kidnapped in August of 2013 with other aid workers.

CNN is not naming her which is a request of her family. As for the identities of the ISIS fighters featured in the very grizzly video that announced the death of American aid worker, Peter Kassig, well, French authorities believe they have identified at least two French nationals among the video as ISIS fighters.

One of which they say is probably 21-year-old Maxime Hauschard, who had told a French channel that his goal was martyrdom. French authorities in a press conference yesterday saying that they believe he was self-radicalized.

Authorities are currently working to identify the other ISIS fighters featured in that video. It is believed they come from different countries around the world -- Christine.

ROMANS: All right, Erin McLaughlin, for us this morning live from London, thank you, Erin.

The president, President Obama, has ordered a top to bottom review of the U.S. government response when Americans are taken hostage by terrorist overseas.

The order was revealed in a Pentagon letter to California Congressman Duncan Hunter, who has advocated for a tougher response to terrorist captors. Three Americans have been killed by ISIS militants. It is not known if the government strict no ransom policy is part of that review.

The parents of ISIS latest victim seeking prayers and privacy this morning, Ed and Paula Kassig spoke briefly to reporters in Indianapolis on Monday after the Islamic terror group released that video showing the beheading of their son, Peter.

Kassigs are asking that he be remembered as someone who risked his life to help others. CNN's Alexandra Field is in Indianapolis with more.

ALEXANDRA FIELD, CNN CORRESPONDENT: Ed and Paula Kassig briefly speaking out about the loss of their son, Peter Kassig, also known as Abdul Rahman Kassig. The family asking now for some privacy, they say they need some space and some time to grieve and mourn the loss of their son. They hope to one day forgive and finally to heal. They spoke very briefly just in a minute or two reading prepared remarks.

(BEGIN VIDEO CLIP)

PAULA KASSIG, PETER KASSIG'S MOTHER: Peter's life is evidence that he has been right all along. One person makes a difference. Our hearts are battered, but they will mend. The world is broken, but it will be healed in the end.

(END VIDEO CLIP)

FIELD: They talked about their heartbreak over the loss of their son, but they also spoke about their pride in the work that he was doing to help others. Kassig was abducted in 2013 when he traveled into Syria to do humanitarian aid work.

The Kassigs ask people to pray at sunset for their son and for all people being held in Syria and Iraq against their will. Kassig converted to Islam during his captivity. His parents say the conversion actually started months before that.

But Peter Kassig grew up in a Methodist Church right here in Indianapolis. It's the same place where his parents spoke about the loss of their son. A spokesperson for the family says there will be a joint Muslim/Christian memorial service for Kassig -- Christine.

ROMANS: All right, Alexandra Field in Indianapolis, thank you.

The Senate expected to vote tonight on the Keystone Excel oil pipeline. Louisiana's Democratic senator, Mary Landrieu, telling reporters, she is comfortable. She has the 60 votes needed to authorize construction of the project even though only 59 senators are publicly supporting it.

If the bill does pass, it will sets up a showdown with the president. He wants the State Department to complete an environmental review before any decision is made.

It has been frigid across much of the country, but could it, will it get even colder? Indra Petersons -- I don't know. We sent her out for a test. She has an EARLY START on your forecast. Hi, there.

INDRA PETERSONS, AMS METEOROLOGIST: Yes, we're definitely talking about temperatures although they are in the 30s right now with the wind chill and winds gusting at 20 miles an hour. It feels like they are in the 20s.

We are expected to get colder as the day goes on here because that cold arctic air is making its way in. Let's take a look at our starting point. We're talking about temperatures around the freezing mark in through the northeast.

Even down in the south, places are below freezing this morning. We throw in the wind chill. We are talking about temperatures below zero. Now yesterday, everyone was talking about the rain. In fact, it was actually record rainfall that we saw in many places like Rhode Island and Connecticut, New Jersey even out here towards Central Park in New York City.

We saw about 1.5 inches of rain. That system made its way out. The cold pool of air down to the south is making its way over the great lakes. It will continue to rush over the great lakes and we will see more lake-effect snow.

So still possibly a foot of snow expected right over the lakes today. One side of the equation is that and this cold air is not going anywhere. Temperatures today set to be 20, if not 30 degrees cooler than yesterday, Christine.

For now we'll see a bit of these temperatures rebound the next day or so, but it's not really going anywhere, another wave right behind it.

ROMANS: Another way right behind it. Indra Petersons will be covering it. Thanks, Indra.

Let's get an EARLY START on your money right now. European shares are higher. Asian shares mix. Japan's benchmark index is coming back after yesterday's news, the economy there is in recession. Hope the prime minister will postpone a sales tax hike in Japan.

Here in the U.S., futures not barely budging. Even the slightest rise though would mean another record day. Yesterday, the S&P 500 gained fewer than 2 points, but that was enough for a record high. The S&P 500 is up more than 10 percent this year.

Now some are starting to warn of a big pullback in the future. The legendary investor, Carl Icahn, tells Reuters, he expects a major correction in the next three to five years. We have not had a true correction of 10 percent more since 2011. Anger and protests in Ferguson, Missouri there ahead of the grand jury announcement over the death of Michael Brown, all of the details coming up.

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ROMANS: Protesters in Ferguson are angry this morning at Missouri Governor Jay Nixon for declaring a state of emergency before the grand jury has announced whether it will indict a white police officer in the fatal shooting of an unarmed black teenager. Now the governor is saying, he is doing this as a precaution. CNN's Sara Sidner is in Ferguson with the story.

SARA SIDNER, CNN CORRESPONDENT: There are certainly a lot of folks talking about what has happened over the past 24 hours. Governor Nixon is declaring a state of emergency and then saying that he has activated the National Guard in preparation for the grand jury deciding whether or not to indict Officer Darren Wilson in the killing of unarmed black teenager, Michael Brown.

The protesters are pretty upset about what he has done saying that basically it is painting them as violent and they have been protesting for more than 100 days. Many of them showing up and they're not violent at all, although they are very, very loud and they do a lot of chants and they do come at police with very strong words.

But they say for the most part, they have been peaceful and this paints them all as violent. However, the governor has said before that he wants to make sure that the community is prepared and businesses and residents are protected and he will do whatever it is in his power to make sure that happens.

So he has gone ahead and put forward the state of emergency. We do know that there are folks who do appreciate that including the mayor of St. Louis who supported the governor's decision saying that preparations are necessary and it is not that easy to simply call up the National Guard and have them be ready. So he has done that in advance.

Also saying that the National Guard will be in the background, but it will be the police departments, who are front and center namely the St. Louis County Police Department and the Missouri Highway Patrol.

ROMANS: All right, Sara Sidner for us this morning.

All right, wedding bells for Charles Manson, the convicted mass murdered reportedly got a marriage license. He intends to tie the knot. He is 80. His bride to be, Elaine Burton is 26. She goes by the name of Star. She moved from the Midwest to California to be near the prison and work for Manson's release.

No date has officially been set, but the prison has assigned a wedding planner. The couple has until February to get married before they have to reapply for a license. He is not up for parole until 2027. He is 80 years old.

Let's take a look at what's coming up on NEW DAY. Alisyn Camerota joins us now. A lot of real news going on today.

ALISYN CAMEROTA, CNN ANCHOR, "NEW DAY": I mean, he is 80 years old and he is Charles Manson. That was interesting for the young woman. Anyway, Christine, nice to see you.

There are, as you know, tensions escalating overnight following the deadly synagogue attack that killed four Israelis. Police call this an act of terror. Hamas is celebrating the assault. How will Israel respond?

We will ask the spokesman for the Israeli prime minister and we'll have the very latest on this rapidly developing situation when "NEW DAY" begins at the top of the hour.

ROMANS: Thank you, Alisyn. I can't wait. Governor Christie talking to his fellow Republicans. What is the New Jersey governor warning the GOP not to do? That is coming up.

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ROMANS: Governor Chris Christie warning the fellow Republicans not to shut down the government even if the president does take action in immigration. In a closed-door meeting, Christie told House GOP leaders that without a clear end game, they would find themselves in the rerun of 2013. That government shut down lasted more than two weeks damage for the GOP politically.

Republican contender for the 2016 presidential race is taking a jab at Hillary Clinton. Wisconsin Scott Walker says he feels no pressure at the age of 47 to make a bid for the White House. That's because he says a certain political rival of his is still toying with the idea into her 60s.

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GOV. SCOTT WALKER (R), WISCONSIN: Whether it is two years, six years, 20 years from now, because at 47, I think about Hillary Clinton and I could run 20 years from now for president and still be about the same age as the former secretary of state is right now.

(END VIDEO CLIP)

ROMANS: Walker says that the closer he gets to deciding whether to run, the more he realizes quote, "You have to be crazy to run for president."

Support for Obamacare appears to be plunging even though most Americans who have enrolled say they like it and plan to renew their coverage. This is the latest Gallup poll found 56 percent of Americans say they disapprove of the Affordable Care Act.

That's an all-time high. Only 37 percent approve an all-time low. Pollsters acknowledge the drubbing suffered by Democrats in the midterm elections and it may have influenced those numbers.

A billboard that spans the lengths of a football field is being unveiled today in New York Times Square. It is said to be the biggest, brightest, most expensive advertising space in North America and it arrives just in time for the holiday shopping season. The digital billboard will occupy an entire city block eight stories high and be on display for four weeks.

ROMANS: All right, one cable channel has come up with a whole new way to get you to watch television live. We will get an EARLY START on your money next.

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ROMANS: All right. Time for an EARLY START on your money this morning, U.S. stock futures barely moving after a tiny gain yesterday that was enough for a record high. The S&P 500's seventh in the last nine trading sessions.

This runs a record high as many analysts predicting more gains into the end of the year, but a few are starting to warn of a big pullback in the future. Legendary investor, Carl Icahn, tells Reuters he expects a major correction in the next three to five years.

JPMorgan just downgraded its view of where U.S. stocks are headed relative to European stocks. Remember there has not been a true correction of 10 percent or more since 2011. All good things must come to an end at some point, just no one knows exactly when.

All right, a new report showing CEOs making more than Uncle Sam. According to this new report from the Center for Effective Government, seven of the 30 largest U.S. companies paid more to their CEO than they did in federal income taxes last year.

That includes Boeing, Ford, Chevron, Citigroup, Verizon, JPMorgan Chase, General Motors, all according to this report that finds these companies come out ahead on income taxes because of all of the big refunds they get.

Getting $270 million in refunds on average and they pay their CEOs $17.3 million on average. Several companies are disputing these findings. We are reaching out to all of the companies to walk through the math for us.

Cable channels are bribing viewers to watch live. WE TV has putting a special code into some shows that the viewers can redeem to win prizes. The catch, the code has to be used within three days of the live telecast that's because advertisers only pay for views that occur within three days.

Other networks are pushing to watch live or risk the big spoilers. ABC using that strategy for this week's "How To Get Away With Murder," with its big winter finale.

All right, it's 57 minutes past the hour. There are a lot to get to this morning. Breaking news overnight, terror in Jerusalem, two knife-and-ax wielding men storm a synagogue killing four.

"NEW DAY" covering that breaking news and a lot more right now.