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Early Start with John Berman and Zoraida Sambolin

Terror Threats Against Sony; Pakistan in Mourning; Did Sydney Hostage-Taker Have Gun License?; Obama Signs $1.1 Trillion Spending Bill; Cheap Oil Spooks Stocks; Grizzlies Snap Warriors 16-Game Win Streak

Aired December 17, 2014 - 05:00   ET

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

JOHN BERMAN, CNN ANCHOR: EARLY START continues right now.

Cyber terror hits the entertainment industry. Theaters pulling the plug on the film "The Interview" after being threatened with terror attacks. More new confidential e-mails have been leaked and now new lawsuits have been filed. We have team coverage breaking down the very latest ahead.

Pakistan is in mourning. The funerals begin for the nearly 150 people killed by Taliban terrorists for going to school. This morning, new information about that attack. We're live.

And deeply disturbed. New information about the gunman behind a terror attack at a Sydney cafe. Australia's prime minister speaking out just hours ago. We're live in Australia with the latest news breaking overnight.

Good morning, everyone. Welcome to EARLY START. I'm John Berman. It is Wednesday, December 17th, 5:00 a.m. in the east. Christine Romans is off this morning.

Breaking overnight: premiere cancelled. New fears overwhelm the entertainment industry. The Landmark Theater chain announced overnight that the New York premiere of Sony Pictures controversial comedy, "The interview", the premiere has been called off. It had been set for tomorrow.

This follows a new warning from the group behind the huge cyber attack on Sony. They call themselves the Guardians of Peace. They threatened unspecified violence at theaters that show the "The Interview." It's a film about an attempt to assassinate North Korean leader Kim Jong-un.

Now, despite the premiere cancellation, a person close to the situation tells CNN that so far, Sony has no plans to pull the film, pull "The Interview" altogether.

CNN's Pamela Brown with latest from Washington -- Pamela.

(BEGIN VIDEOTAPE) PAMELA BROWN, CNN JUSTICE CORRESPONDENT: Well, John, this morning, the FBI is investigating a threatening message reportedly from the Sony hackers, promising a bitter fate to anyone who sees the controversial North Korean comedy "The Interview" set to release on Christmas Day. The message says that soon, all the world will see what an awful movie Sony Pictures Entertainment has made. The world will be full of fear, remember the 11th of September 2001.

We know the Department of Homeland Security says it is assessing the threats' credibility. Officials say they're looking into this similar to how they would investigate a bomb threat. But at this point, there's no new intelligence indicating threats against theaters in the U.S.

In the wake of this threat though, the stars of the comedy, Seth Rogen and James Franco, have actually pulled out of press appearances. Multiple law enforcement sources I've spoken to say the strong suspicion is that North Korea is the instigator of the hack and possibly outsourced it to a group elsewhere as retaliation for the movie. This morning, the FBI is scrubbing Sony's computer system, trying to gather enough evidence to be able to definitively point the finger at the hacking culprit.

But, John, these investigations are complex and nuanced. And it could be some time before we know for sure.

(END VIDEOTAPE)

BERMAN: All right. Our thanks to Pamela Brown in Washington.

This story has implications in Washington, here in New York, where the premiere was cancelled. Hollywood obviously, with the entertainment industry reeling right now.

And in Japan, which is where the Sony, the corporate headquarters are housed in Japan. Japan has a long tense relationship with North Korea. And the release of this film "The Interview" has only helped fuel that tension.

Let's go to CNN's Will Ripley. He joins us now live from Tokyo.

And, Will, what are we learning about how this film was even approved in the first place?

WILL RIPLEY, CNN CORRESPONDENT: Well, you know, it's a good question, John. And that's a question that Sony executives may actually have to answer to the Japanese government because insiders here in Tokyo are telling us that there undoubtedly will be meetings between Sony's top executives and many of the top lawmakers here who want to know why the Japanese company, the parent company of Sony aloud this incendiary film.

And the timing couldn't be worse for this, John. This week happens to be the three-year anniversary of Kim Jong-un's reign, the three-year anniversary of his father's unexpected passing. He ascended to power. And the entire country of North Korea as we speak is not only mourning the loss of the previous leader but also celebrating the reign of Kim Jong-un.

So, the fact that there's a Japanese company that's essentially bankrolling this American movie featuring a graphic scene showing the assassination of North Korea's leader, who they hold up higher than anyone else on the planet, he's worshipped like a god, I can tell you from firsthand experience from going to North Korea a few months ago. A lot of people are asking, how could this have happened?

BERMAN: And, Will, you've uncovered news overnight about how Sony Pictures has been dealing with this issue of Sony Pictures, Michael Lynton, actually met with security officials from the RAND Corporation to try to vet this film?

RIPLEY: Yes, he's on the board of directors for RAND Corporation. So, it's an existing relationship. But he asked one of their Korea experts to take a look at the film. It appears through these hacked emails that Sony executives were becoming more and more uncomfortable with the contents. So, he had the expert take a look and write up a detailed memo.

And I can tell you from people here, this type of a film would not be received well by audiences in Japan or Korea, one, because that kind of comedy doesn't translate well from English to Japanese, or English to Korean. But, also, because, frankly, people in this part of the world, considering all the geopolitics at play wouldn't find the subject matter very funny.

BERMAN: All right. Will Ripley for us in Tokyo, thanks so much.

As if this is not bad news for Sony, there is more, we're talking lawsuits.

Cristina Alesci is here with that.

CRISTINA ALESCI, CNN BUSINESS CORRESONDENT: Yes, the company's legal troubles started today. Two employees has filed a lawsuit against Sony for failing to protect their personal information. The recent breach results in exposed employee Social Security numbers, medical information and pay data.

Now, here's the problem for Sony. They say Sony was hacked before, yet, still failed to protect its networks. That's why some people think this lawsuit actually has legs. The former employees are asking the court to make the lawsuit a class action so other employees could join in. That could get really expensive for Sony.

Sony shares are down 9 percent since the attack occurred at the end of November. Remember, the stock market has been down in recent days, so this may not be tied to the hack specifically. The stock is still up 14 percent this year. And the market may not get too down on Sony because the hack only affected Sony Pictures which accounts for about 10 percent of the company's sales.

But there are long-term questions about A-list celebrities --

BERMAN: I'll say. ALESCI: -- not wanting to work for Sony after embarrassing e-mails were released. People do say, based on reports I've read, that this lawsuit actually can result in Sony paying out significant claims.

When customers have tried to sue companies because their personal information have been released publicly, they have not been successful. But there's a greater onus --

BERMAN: Yes.

ALESCI: -- if it's your employee's information, it turns out.

So, this is now grounds in terms of lawsuits. And this is something that other companies are going to be paying attention to, maybe causing them to beef up their own security as a result.

BERMAN: Yes, they are already. I've been seeing it everywhere.

Thanks, Cristina. Thanks so much.

North Korea in the news all over the place. North Korea is asking the United Nations Security Council to add torture by the CIA to the agenda for its meeting next week.

Now, Pyongyang called the CIA's harsh interrogation techniques brutal and medieval. The move is an attempt by North Korea to turn the tables. Why? The Security Council is also discussing North Korea's human rights record. The council will consider a resolution calling for North Korea to be brought before an International Court for crimes against humanity.

Seven minutes after the hour.

And the funerals have begun this morning in Pakistan for the 145 people murdered in the horrific attack by the Pakistani Taliban. That number includes 132 students under the age of 16. Children who died in this attack were slaughtered by these terrorists.

CNN's Michelle Stockman live for us now in Islamabad with the latest.

Good morning, Michelle.

MICHELLE STOCKMAN, CNN INTERNATIONAL CORRESPONDENT: That's right, John. This is a country that has just been shocked. This is a city, Peshawar, that is paralyzed with grief. And a nation that has so much political division, that today is trying to show a united front.

We've been addressed by the prime minister who has said that this attack is blowback from the success of the military's operations against the Taliban in their strongholds in the northwestern areas of the country, the tribal areas where they are known to congregate and to launch attacks from those areas. The military chief is traveling today to Kabul to meet with the Afghan president.

Now, there has been a significant warming in relations between these two countries after the election of the Afghan president. In his remarks, the prime minister said they've turned a new page, not only a new page, but a new book.

So, they have asked the Afghan government to follow the Pakistani example to launch operations along this restive border area. And it's strongly implied through its comments today that it's likely that this attack originated within Afghanistan, with perhaps directed with Afghanistan.

We know from the TTP that they said they were in indirect contact with the militants as they were going through the school, telling them who to target. So, looking ahead at the response of the nation, it's going to be likely to be an international effort to try and root out where this originated and root out those responsible.

BERMAN: All right. Michelle Stockman for us in Islamabad, thanks so much. What a tragedy for all of those families.

We have new information about the terror attack in Sydney. It does appear, at least according to some sources, that the gunman whose siege of that cafe led to the deaths of two people. There's some reporting that he did have a gun license and had fallen off a government security watch list. That's the word from Australia's prime minister who is vowing to find out why and how this all happened and make sure it doesn't happen again.

Listen.

(BEGIN VIDEO CLIP)

TONY ABBOTT, AUSTRALIAN PRIME MINISTER: I will not rest until I am confident that you are as safe as any government can possibly make you.

(END VIDEO CLIP)

BERMAN: Let's go live to Sydney this morning.

CNN's Andrew Stevens is there.

Andrew, what's the latest?

ANDREW STEVENS, CNN INTERNATIONAL CORRESPONDENT: Well, Tony Abbott, John, has put a lot of credibility in his domestic policies on securing Australia from terrorism. And he's introduced some of the toughest measures we've seen anywhere in the world, anti-terror measures. And so, for this to happen on his watch, he says he's determined to get to the bottom of it.

And when you consider, there does seem to be a fail of the system. Given the fact that this is a man, the gunman was a man who did have a criminal record, who was facing multiple charges, accessory to murder and also found guilty of sending poison pen letters to the parents of the deceased Australian soldiers serving overseas. He had extremist tendencies, a lot was known was about this man.

Yet, he could carry a gun which now has -- Australia has very tough gun laws as well. He could carry a gun into a cafe in the heart of Sydney. And we all know what happened after that. So, Tony Abbott really pushing hard on this investigation.

I also just want to show you, John, I'll step out of the frame for the moment, the scene behind me, because this is just a short away from the Lindt chocolate cafe where the 16-hour siege took place, which resulted in the death of two innocent victims. And this ever-growing sea of flowers is a tribute to those victims. They've been coming here in house to for the past two days to show their solidarity, to show their respect. And to grieve together the loss of those two lives.

And certainly, when you see this, it is a mark of just how Sydney is pulling together in the wake of this tragedy, John. This scene is likely to continue for another 24, 48 hours at least, people tell me. In fact, there's a lot of people now talking about making this area of Sydney, certainly, which would make it a permanent memorial to those two who lost their lives in that siege.

BERMAN: These are important days for Sydney as that city comes together in the wake of this tragedy.

Andrew Stevens for us in Sydney, thanks so much.

Some news in domestic front.

Breaking overnight, President Obama signed a huge $1.1 trillion spending bill that will keep the federal government operating for the next nine months. The measure rolls back regulations some regulations some banks, but it does keep Obamacare funded for the length of this deal. Now, the Department of Homeland Security will only be funded through February, which sets up a showdown over the president's executive action on immigration.

A federal judge in Pennsylvania has ruled that the president's actions on immigration are unconstitutional. Judge Arthur Schwab says the president violated the separation of powers by creating a systematic and rigid process for determining which immigrants qualify to remain in the country. Now, it doesn't seem like this finding will have any impact on the president's reform. It's not clear how it will affect the measure moving forward.

Thirteen minutes after the hour.

Wet weather ahead in the South and Northeast. I want to go to meteorologist Pedram Javaheri for an early look at the forecast -- Pedram.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Good Wednesday morning to you. Let's talk about what's happening around the Northeast. Well, fog kind of starts your morning around New York, Washington, visibility down to about two miles but work your way north of New York and to Boston, that's where the wet weather is going to be sticking around for the next day or so. Of course, north of Boston, you get some higher elevations, some decent snow accumulations.

Big story, though, across the Gulf Coast states, the next couple of days is pretty active, from New Orleans, all the way across to Atlanta, as we head into Friday. Initially, the models had that storm system turning its way potential nor'easter across this region of the country, but at this point, it looks like it will stay way offshore, at this -- the forecast for the next couple of days for the Northeast should be pretty light rainfall across areas of, say, Boston, gusty winds certainly are in the forecast. While one to two inches of snowfall in the southern portions of Maine, get up to the north, over four inches left in the forecast.

But again, it all starts down here around Houston, to Jackson, Mississippi, where we do have several inches of rain in their forecast. A soggy next couple of days down in the South.

Sending it back to you.

BERMAN: All right. Our thanks to Pedram for the forecast.

Fourteen minutes after the hour. A family's fury, their loved ones shot and killed by police while carrying a pellet gun that was for sale inside a Walmart. That family is now filing a lawsuit after a grand jury does not indict the officers involved. New developments ahead.

(COMMERCIAL BREAK)

BERMAN: The family of the man fatally shot by police officers at an Ohio Walmart is suing the retailer giant, also police. John Crawford's family filed a wrongful death suit after he was shot and killed by police as he held a BB gun. You can see it on the video right there. A grand jury decided in September not to indict any of the officers involved in the incident.

Walmart is not commenting on the specifics of the case but did release a statement saying, quote, "Out of respect for everyone involved, we believe it is not appropriate to discuss the specifics of this matter, but we can say that our associates acted properly."

The family's attorney said they want justice for Crawford's death.

(BEGIN VIDEO CLIP)

SHEAN WILLIAMS, ATTORNEY: The first thing to do in a country this great is to make sure we hold accountable everybody for their actions, whether you're the police or not, whether you are a corporate giant like Walmart, we all as citizens, corporate citizens, governmental citizens, owe it to each other to make sure we treat each other with the respect, the care, the dignity, that we all deserve.

(END VIDEO CLIP)

BERMAN: The Beaver Creek Police Department also released a statement saying, quote, "We acknowledge the family's right to bring this action and are confident the trial will be fair and impartial. We believe the evidence will prove the officer's actions were legally justified."

The city of Los Angeles is buying 7,000 body cameras for police officers. That's in an effort to increase transparency. Body cameras, of course, become a big issue in the wake of Michael Brown's death in Ferguson, Missouri. The mayor of Los Angeles calls the cameras a critical part of the formula to regain the public's trust in police. More than $1 million raised from private donations will help pay for these cameras.

The New York city police department is offering a $12,000 reward for information lead to get arrest of seven demonstrators who clashed with officers on the Brooklyn Bridge during protests last Saturday. A video posted to YouTube shows an assault against two New York police lieutenants. Both officers were badly bruised and one suffered a broken nose.

The manhunt for a suspected mass murderer in Pennsylvania is over this morning. The body of Iraq War veteran Bradley William Stone was discovered in the woods near his home north of Philadelphia. Officials say the ex-marine appears to have died from self-inflicted knife wounds. Stone was involved in a custody battle with his wife. He is suspected of killing her and five of her relatives.

Prosecutors in Los Angeles will not to file sex abuse charges against Bill Cosby. The decision comes after just 10 days after an alleged victim Judy Huth met with Los Angeles police detectives. She has filed a civil suit against Cosby, claiming he forced her to perform a sex act on him in 1974, when she was just 15 years old. Cosby's attorneys claimed that Huth tried to extort $250,000 from Cosby before filing the suit.

Now, Cosby's daughter Evin is publicly defending her father, releasing a statement to "Access Hollywood" that reads, "He is the father you thought you knew. 'The Cosby Show' was my today's TV reality show. Thank you, that's all I would like to say."

NFL players will now be treated under a brain injury program designed for veterans. The after the impact program is offered at the Eisenhower Center in Ann Arbor, Michigan. It provides intense treatment for concussions and mild traumatic brain injury. The NFL says it expects that 28 percent of its players could suffer from at least mild form of dementia someday, even perhaps Alzheimer's disease.

Let's get an early start of your money now. Cristina Alesci is here with that.

Good morning.

ALESCI: Good morning.

Cheap oil is definitely freaking the market out right now. Futures are up in the markets, futures are up but who knows what will happen in this wild market. Take yesterday, for example, it was a very volatile day. The Dow closed down 112 points. It's now down 5 percent from the record high on December 5th and has dropped for six of the past seven trading days.

Now, investors and traders are looking at a few key factors this morning. One, Russia's economy is in dire trouble. And its currency, the ruble is plunging against the dollar. And the Federal Reserve may tweak its language and hit an interest rate hike later today. And three, the biggest one, as I said, oil, oil, oil -- crude oil is $55 a barrel right now. It's so crazy. You think about it, it's a five- year low, and down almost 50 percent from the summer peak.

That is causing big concerns about global growth around the world. Of course, oil is tied to production. It's tied to business activity. It's tied to consumer demand. So, the demand for oil is low. It kind of says something about the health of those economies and how economies in Europe and Asia may not be as healthy as some people started thinking at the beginning of the year.

BERMAN: That's great news for drivers, but, man, the markets are rattled. Cristina --

ALESCI: Yes. You drive a lot?

BERMAN: We took a road trip this weekend, and it was like one gas station after another, wow, wow, let's get gas here. It's so cheap.

(LAUGHTER)

BERMAN: Cristina, thanks so much.

ALESCI: That's right.

BERMAN: Twenty-two minutes after the hour.

A matchup of unlikely NBA powers. The Golden State Warriors with their 16-game win streak on the line against the Memphis Grizzlies. Who came out on top? Andy Scholes with the answer in the "Bleacher Report", next.

(COMMERCIAL BREAK)

BERMAN: Really, one of the most exciting things in sports this had season, the Golden State Warriors franchise records, 16-game winning streak. It was so thrilling. Yes, but now, it's over.

Andy Scholes with more on the "Bleacher Report."

Good morning, Andy.

ANDY SCHOLES, BLEACHER REPORT: Hey, good morning, John.

Yes, the Warriors, they got a 21-2 start to the season. Some people are even starting to kick around that they could challenge the '96 Bulls record of 72. You know, that's probably not going to happen. But nonetheless, it's been an impressive season.

Now, last night, the Warriors, they were taking on the Memphis Grizzlies who lost four games themselves in Memphis. They went on like 20-0 to start the second quarter. They opened up a big lead in this game.

The Warriors did cut it to two in the fourth quarter but the Grizzlies would hold on to get the win 105-98, snapping Golden State's franchise record, 16-game winning streak.

All right. It's not very often you get a rain delay indoors. But that's exactly what happened at the Heat/Nets game in Brooklyn last night. The game was delayed for about a half hour in the first quarter with the installation of the new green roof at the Barclays Center led to a water leak. In the end, the Heat overcame the humidity to beat the Nets, 95-91.

The Florida Panthers and Washington Capitols with a shoot out last night to determine the winner, and it went on and on and on for 20 rounds. That's five rounds longer than any shoot-out in NHL history. Every player in uniform minus the goalies got in at least one. Finally, the Panthers score the goal in the 2-1 victory.

All right. Two-time Masters champion Bubba Watson spent much of the offseason in the recording studio, working on his first single. Well, it dropped yesterday. I give you, Bubba Claus.

(MUSIC VIDEO CLIP PLAYS)

SCHOLES: The bird is a plane, it's Bubba Claus.

John, I think this is one of those videos that's so bad it's actually good.

BERMAN: Andy, is this why you're my son's favorite part of the broadcast. He says, daddy, where's the sports report? Where's the sports report?

Wave for the Berman boys, Andy.

SCHOLES: Hey, Berman boys.

BERMAN: All right. Andy Scholes, thank you so much. Great to see you.

SCHOLES: Have a good morning. All right.

BERMAN: Twenty-seven minutes after the hour.

Movie theaters, they've been threatened with terror attacks. Some now pulling the plug on a film, "The Interview." That as hackers promise violence if this movie is shown. We have live team coverage, next.

(COMMERCIAL BREAK)