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Early Start with John Berman and Zoraida Sambolin

Michael Brown's Stepfather Investigated; Charles Barkley Sounds Off; Deadly Bus Crash; ISIS Leader Wife Arrested; Israeli Prime Minister Dissolves Parliament

Aired December 03, 2014 - 04:30   ET

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


(COMMERCIAL BREAK)

CHRISTINE ROMANS, CNN ANCHOR: Under investigation. Did the stepfather of Michael Brown intend to cause violence after Officer Darren Wilson was cleared of wrongdoing in Brown's death? Or was his now infamous outburst just a raw emotional cry of pain?

JOHN BERMAN, CNN ANCHOR: NBA great Charles Barkley sounding off on what's going on in Ferguson. What he said to CNN about the looting that occurred during the protest and the nationwide anger toward police. We're also talking about racial tension around the country.

ROMANS: And a deadly bus crash takes the lives of three people, including two young school children. What caused two school buses to collide? We'll look at the investigation into this tragedy in just moments. Really a tough story there.

Welcome back to EARLY START. I'm Christine Romans.

BERMAN: And I'm John Berman. Great to see you this morning. Thirty minutes past the hour.

The question is, was it the outburst of a grief-stricken father, or was this a crime? This morning, multiple law enforcement agencies are investigating whether Michael Brown's stepfather Louis Head incited a riot last week. This happened Monday night, about a week and a half ago, after a grand jury decided not to indict Officer Darren Wilson in Michael Brown's death.

Head reached out to comfort Brown's sobbing mother, his wife, and then turned his rage outward.

(BEGIN VIDEO CLIP)

LOUIS HEAD, MICHAEL BROWN'S STEPFATHER: Burn this mother (EXPLETIVE DELETED) down! Burn this (EXPLETIVE DELETED) down! Burn this (EXPLETIVE DELETED) down! Burn this (EXPLETIVE DELETED) down! Burn this (EXPLETIVE DELETED) down!

(END VIDEO CLIP)

ROMANS: Two federal investigations into the Ferguson Police Department, Brown's shooting and its aftermath are still moving ahead. Those investigations expected to wrap up by the time Attorney General Eric Holder leaves office, likely by February.

Meanwhile, after days of non-violent protest in Ferguson, the National Guard is now starting to scale back its presence.

Missouri Governor Jay Nixon giving no firm timetable, but he has announced a systematic reduction of the nearly 1,300 guard troops stationed in the city.

Let's turn to CNN's George Howell this morning. He's got the latest for us from Ferguson.

(BEGIN VIDEOTAPE)

GEORGE HOWELL, CNN CORRESPONDENT: The headline out of Ferguson, John and Christine, really is all about the investigation. Police are promising to look into every angle to find anyone responsible for the damage that we saw play out here the night of the riots here in Ferguson.

And, specifically, they're looking at that video that many of us had seen, the video of Michael Brown's stepfather, Louis Head, where he was basically telling the crowd to burn the city down, burn things down.

Remember, we have heard from Michael Brown's mother, Lesley McSpadden, saying at that moment, he was just very angry. He was very frustrated with the outcome of the grand jury and he made those comments in that context.

We've also heard from his attorney, Benjamin Crump, from the family's attorney, saying the same thing.

But police are looking into the possibility that those comments could have changed the mood of the crowd and incited the riot, incited the looting that we saw play out that night. We understand that the Ferguson Police Department is looking into that, and also the St. Louis County Police Department will be looking into it as well. They have interviewed people who know Mr. Head. They also plan to interview Mr. Head himself.

And police again making the point that they're not just singling out Louis Head here. They are going to go aggressively to track down anyone responsible. Anyone that they can determine who was behind the looting and the damage that we saw play out in Ferguson -- John and Christine.

(END VIDEOTAPE)

ROMANS: All right. George Howell, thank you for that.

Former NBA great Charles Barkley speaking out against the investigation into Louis Head's actions in his words that night. Barkley tells CNN's Brooke Baldwin that police should not be investigating Michael Brown's stepfather for inciting a riot. He also addressed the anger across the country between communities and law enforcement following Michael Brown's death. (BEGIN VIDEO CLIP)

CHARLES BARKLEY, FORMER NBA GREAT: The notion that white cops are just out there just killing black people, that's ridiculous. That's just flat out ridiculous. And I challenge any black person to try to make that point. This motion that cops -- cops are actually awesome. They're the only thing in the ghetto from this place being the Wild, Wild West. So this notion that cops are out there killing black men is ridiculous. And I hate that narrative coming out of this entire situation.

(END VIDEO CLIP)

ROMANS: Barkley also says he agrees, he agrees with the grand jury decision not to indict Officer Darren Wilson. You can see more of that excellent interview with Charles Barkley on "NEW DAY" at 6:00 a.m. this morning.

BERMAN: All right. Breaking news, a pair of car bomb blasts overnight. The first blast reported outside the international airport in Somalia's capital. That is where the United Nations and some Western embassies are based in that country. So far, no reports of any deaths there. Six people were killed following an attack in Yemen. This happened outside of the residence of the newly appointed Iranian ambassador. There are sectarian conflict, intense sectarian conflict between Shiites and Sunnis inside Yemen. No word on who is behind either of these attacks.

Thirty-four minutes after the hour. Expect fireworks this morning when airbag maker Takata appeared in front of a House subcommittee alongside federal highway safety regulators. Takata ignored regulators' midnight deadline to issue a nationwide recall of airbags that the government says are dangerous. The embattled auto parts manufacturer is risking up $35 millions in fines for failing to comply with the government recall request. The airbags can malfunction and deploy firing essentially shrapnel at motorists. And some drivers have been killed.

ROMANS: All right. Breaking overnight: new allegations against Bill Cosby, and for the first time, they come from a woman claiming the comedian sexually abused her when she was underage.

"Radar Online" is reporting on a lawsuit filed in Los Angeles by a woman named Judy Huth. She claims Cosby molested her in 1974 when she was 15 years old. It allegedly happened in a bedroom at the Playboy Mansion after Huth says Cosby alcohol to her and her 16-year-old friend. CNN has reached out to Huth, her attorney, and Cosby's attorney for comment.

BERMAN: The National Transportation Safety Board investigating the cause of a deadly collision, a collision between two school buses in Knoxville, Tennessee. They were carrying elementary school students. Two young girls and a teacher's aide were killed. Nearly two dozen other children were treated at area hospitals. Police say the buses were traveling in opposite directions when one apparently crossed over the median and hit the other.

ROMANS: All right. There's no official word yet from the White House, but all signs are pointing to Ashton Carter as President Obama's choice to be the next secretary of defense. Carter is a former deputy defense secretary in the Obama administration. Officials have been singing his praises and spokesman Josh Earnest says Carter knows the playbook.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: He's somebody that does have a detailed understanding of the way that the Department of Defense works.

(END VIDEO CLIP)

ROMANS: We're also learning the White House wanted Chuck Hagel to hold off on resigning as defense secretary until this week when they hope the new nominee would be in place. But Hagel refused, deciding that if he was being forced out of the job, he would announce it as soon as possible.

BERMAN: So, Ash Carter has a PhD in theoretical physics from Oxford and a degree from Yale in Medieval history. He's like a hundred times smarter than anyone I've ever met. I just like those facts. Apropos of nothing else.

President Obama meets with Senate leader Mitch McConnell in the Oval Office. Sure to be on the agenda: a House Republican plan to challenge the president's immigration executive order. The plan, though, will not shut down the government.

Facing a December 11th deadline, Speaker John Boehner announced on Tuesday the Republicans will agree to fund the federal government through next year.

ROMANS: All except for the Homeland Security Department. That's the agency that would carry out much of the president's immigration order.

Homeland Security would only be funded until March, by which time, the GOP will run both houses of Congress. Homeland Security Secretary Jeh Johnson was under fire at a House committee hearing Tuesday. Johnson called the plan to fund the agency for only a few months a very bad idea.

With more now, CNN White House correspondent Michelle Kosinski.

(BEGIN VIDEOTAPE)

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, John and Christine.

Well, we heard that angry questioning of Homeland Security Secretary Jeh Johnson before the House Homeland Security Committee, members of Congress again blasting the president's executive action on immigration. And again raising the speculation if Congress doesn't shut down the government, they could tinker with the funding, for example, possibly freezing funding to the Department of Homeland Security so that the executive action doesn't work.

Secretary Johnson empathically opposed such a move, saying that that could hurt national security. The White House, too, was asked would the president veto such a move. But the White House wouldn't quite say that. They said they would look at whatever was presented, continue to work on, consult on it, but that they hoped Congress would do its duty, pass a full-year budget that would include funding for every agency.

Although a day earlier the White House was asked would the president veto a bill that would effectively tie the president's hands and keep the executive action from going forward, and the White House did say definitively, yes, he would veto that. The White House is saying, though, they do have confidence of some of the some like incoming Senate Majority Leader Mitch McConnell who did say that, no, there would not be a government shutdown -- John and Christine.

(END VIDEOTAPE)

ROMANS: So, John, if you don't fund Homeland Security past March, then you can't start a whole process of 5 million people, fingerprinted, brought in, interviewed, put on the line for this --

BERMAN: There is one hitch to all of this, a lot of immigration functions actually not funded through grants.

ROMANS: They're funded by fees.

BERMAN: By fees. So they'll have money to do most of what they wanted to do. The logistics of it and bureaucracy, a whole separate matter.

ROMANS: Whole separate matter.

All right. Thirty-nine minutes past the hour. Let's get an early start in your money this morning.

Asian shares ended the day mostly higher, European shares mix, I'd say right now. U.S. stocks are, let's just say they're barely moving. But stocks have never been this high. Yesterday, the Dow climbed 103 points that was another record close, 32 record closes this year.

So, let's talk about this brand new report this morning from Zillow.

BERMAN: Let's talk about that.

ROMANS: Let's talk about that.

Millennials will be the biggest home buyers next year. Millennials.

BERMAN: Where are they getting the money?

ROMANS: I don't -- their parents maybe.

(CROSSTALK)

ROMANS: Until this point, millennials have largely put off buying homes for various residences. Weak job prospects, high student loan debt. Next year, rising rent will outpace home values and may push many of these smart millennials to buy. They are jumping in the market, it will loosen recent housing gridlock. That is the hope. They will take starter homes gen X is looking to sell. It'll make room for gen X to buy the larger homes from baby boomers and maybe unlock this gridlock in the housing market.]

BERMAN: All right. I'll buy that.

ROMANS: It's a forecast from Zillow, and I hope it's true.

BERMAN: All right. She is considered a powerful woman, married to a very, very dangerous man. And now, she is in custody. How will authorities overseas able to arrest the wife of the leader of ISIS?

ROMANS: And could it be Ferguson all over again? Another grand jury, a new grand jury, expected to make a decision soon in the chokehold death of an unarmed black man killed by a New York City cop. Details ahead.

(COMMERCIAL BREAK)

ROMANS: Welcome back.

We're learning more this morning about family members of ISIS leader Abu Bakr al Baghdadi now being held by Lebanese security officials. One was the wife of al Baghdadi caught as she tried to cross into Lebanon from Syria. She is said to be a powerful figure in ISIS. But at the moment, there are more questions and answers. Unclear whether the woman was a wife or ex-wife, and sources differ on whether the other person arrested was the ISIS' leader's son or daughter.

BERMAN: Break overnight, a big shake-up in Israeli politics. Israel's prime minister has essentially fired two government ministers and called for early elections. Prime Minister Benjamin Netanyahu has dismissed the country's finance and justice ministers. In a televised news conference, Netanyahu blasted the pair for attacking his government and his policies from within.

Joining us now with the latest, CNN's Ben Wedeman in Jerusalem.

Good morning, Ben.

These are -- is the coalition essentially falling apart?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: It is falling apart. In fact, it's dead and buried at this point.

The Israeli Knesset has now scheduled this election for March 17th. This came after weeks of very public disagreements between the prime minister and Tzipi Livni, his justice minister, and, Yair Lapid, his finance minister. He accused them in this press conference that was held live on Israeli television last night of trying to pull off a pooch against them.

So, what he's hoping is to try to come out of these elections with a government more to his liking, more to the right with some of the religious partners as well here in Israel. You cannot run a country without a coalition. But many Israelis are very happy with this. The last election was 22 months ago.

According to Israeli Channel 2, 55 percent of those polled said they don't want an election at this point. They look around. They look at the situation in Jerusalem with rising violence. The Israeli economy is beginning to falter. They're worried about threats from Iran, from Hezbollah, from Hamas. And asked, why at this point should the country go to the polls? John?

BERMAN: All right. Ben Wedeman, yes, tumultuous time to be holding an election in that region. Our thanks to you.

ROMANS: All right. Brutal militant violence on the rise in Kenya. How are officials dealing with the deadly threat of al Shabaab after Tuesday's gruesome massacre.

(COMMERCIAL BREAK)

ROMANS: New information about a violent attack by gunman with an al Qaeda affiliate in Kenya. Militants with al Shabaab killed at least 36 people at a stone quarry near the Somali border. The gunmen separated out Muslims and let them go and then executed Christians, beheading some of them.

CNN's Diana Magnay live for us in Nairobi with more.

Good morning, Diana. What's going on here?

DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Hi, Christine. Well, many of the bodies have now been thrown down here to Nairobi to the city morgue.

People in Kenya are obviously extremely worried that not only did we have this brutal killing of the quarry workers yesterday. But 10 days before that, 28 people were killed on a bus in the same very turbulent region of northern eastern Kenya, very close to the Somali border, when al Shabaab militants boarded the bus and if they couldn't cite verses of the Koran, they were executed.

And the question is, is President Uhuru Kenyatta doing enough to keep the people of Kenya safe? He issued a long address to the people here yesterday saying this country is effectively at war against Islamic extremists. He said that two of his top security personnel would go and were replaced. And that he would try to make sure that intelligence, that gaps in the security forces were improved, tightened up, to make the police stronger, more coordinated to better combat al Shabaab in Kenya.

But many people here feel that really, Kenyan defense forces shouldn't be involved in the fight with African Union forces in Somalia, and it's because of that that they are getting attack. But clearly, the president will not stop that mission. He made that very clear.

Back to you, Christine.

ROMANS: All right. Diana Magnay for us this morning in Nairobi -- thank you, Diana.

BERMAN: President Obama urging Congress to approve $6 billion in emergency aid to fight Ebola in West Africa. The president says the U.S. needs to continue to fund basic research and help build better public health systems in West Africa so that the world can quickly contain future outbreaks. He calls it a smart investment. But some lawmakers are not so sure.

Speaking at the National Institutes of Health where scientists are working on the vaccine, the president said the fight is far from over.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Every hot spot is an ember, if not contained can become a new fire. So, we cannot let down our guard even for a minute. And we can't just fight this epidemic, we have to extinguish it.

(END VIDEO CLIP)

BERMAN: The World Health Organization says more than 6,000 people have died in Liberia, Sierra Leone, and Guinea in this Ebola outbreak.

ROMANS: A grand jury investigating the chokehold death of a New York City man is expected to meet today. This incident was caught on video, Eric Garner died last July after Officer Daniel Pantaleo placed him in an apparent chokehold. It happened as Garner was being arrested or selling loose untaxed cigarettes. We're told a decision on whether to indict the officer could come by the end of the week.

BERMAN: All right. Just a few minutes before the hour.

Sprint is offering to cut your monthly phone bill in half. We'll tell you what you have to do to get in on the deal and exactly when. We'll get an early start on your money, next.

(COMMERCIAL BREAK)

ROMANS: All right. Let's get an early start on your money.

A quick look at stocks around the world: Asia up, Europe mixed. And U.S. stocks on fire yesterday. The Dow closed 103 points higher to end at the highest level in history. Clearly, it's been a very good year for stocks. The Dow is up almost 8 percent. The S&P 500 gained about 12 percent.

John, look at that number in the middle. The NASDAQ up almost 14 percent this year.

BERMAN: Wow.

ROMANS: That is a very good year.

Brand new on CNN Money this morning. Your tax breaks are in limbo, thanks to Washington dysfunction. It's back. Teachers, commuters, anyone who lives in a high tax state, I'm talking about you, in the next two weeks, Congress is expected to approve a retro active of 50 tax breaks that expired last year. If that doesn't go through, get ready for a very confusing tax filing season. Tax breaks at risk include the tuition deduction, the health coverage tax credit, and to Washington style, any decision likely to come down to the wire.

Sprint wants new customers so badly it's offering to cut your Verizon or AT&T bill in half if you make the switch. It's a one day offer. It's this Friday only. Verizon and AT&T customers can present their latest bill. Sprint will cut the price in half with the same data plan, plus unlimited talk and text. It will even buy customers out of their current contracts, up to $350 a line.

This is Sprint's latest attempt to stop hemorrhaging money and customers. That is one day only on Friday.

BERMAN: I wonder, this is going to cost them a lot to do.

ROMANS: It's going to cost them a lot to do and you could see the other companies trying to retake -- my little secret is if you have a problem with your provider, you call the retention desk. You know, I'm about to leave you. What are you about to do for me? So maybe you can guess where -- I know.

BERMAN: It's like getting a lot of salt call the retention desk. That's something completely different.

(LAUGHTER)

ROMANS: That's funny but not the same thing.

BERMAN: All right. EARLY START continues right now.

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