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Early Start with John Berman and Zoraida Sambolin

U.S. Releases Three Members Of Cuban Five; Sony Cancels Release of "The Interview"; Inside the Pakistan Massacre

Aired December 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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JOHN BERMAN, CNN ANCHOR : A new course on Cuba. President Obama reveals an historic agreement to restore relations with the island after more than 50 years in isolation. This deal really only the pope could put together. It will not happen easily. Politicians are promising a big fight in Washington. We have team coverage breaking this important story.

"The Interview" canceled. Sony pulling the plug on this now controversial film after cyber-attacks and terror threats. Today, U.S. investigators are expected to reveal who is behind these attacks, and yes, all eyes are on North Korea.

Inside Pakistan's school massacre, CNN crews travels to the school where most of those murdered nearly 150 people, most of them children. We're live with that story.

Welcome back to Early Start. I'm John Berman. It's 30 minutes past the hour right now. Christine Romans is off this morning.

Developing this morning, monumental changes in the contentious and complicated relationship between the United States and Cuba. President Obama announced plans to normalize U.S. relations with Cuba after months of closely guarded and secret negotiations.

The president ordered an opening of the embassy in Havana for the first time in more than 50 years. There will be a Cuban Embassy in Washington. One key part of the deal is the release of U.S. contractor Alan Gross after five years in a Cuban prison. He was immediately flown back to the United States.

(BEGIN VIDEO CLIP)

ALAN GROSS, FREED BY CUBA: God bless you and thank you. It was crucial to my survival knowing that I was not forgotten.

(END VIDEO CLIP)

BERMAN: There is a spy swap as part of the deal. Three Cubans convicted of espionage released from U.S. prisons. A U.S. intelligence asset who had been imprisoned in Cuba for 20 years was also set free.

Our senior White House correspondent, Jim Acosta, has latest on the historic development -- Jim.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John, it is not a lifting of the embargo, but the cold war between the U.S. and Cuba has started to thaw. This diplomatic deal with Cuba is a culmination of secret talks with the communist nation that began nearly started 18 months ago in June of last year.

Senior administration officials say most of the discussions took place in Canada led by Deputy National Security Adviser Ben Rhodes. Those wheels were in motion when the president and Raul Castro shook hands at Nelson Mandela's memorial service last December in South Africa.

But one key sticking point remains in all of this and that is the imprisonment of Alan Gross in Cuba. Earlier this year, the pope stepped in sending letters to President Obama and Raul Castro urging both sides to resolve the issue of Gross' status.

Then to push the talks forward, the Vatican welcomed officials from the U.S. and Cuba back to Rome just last October. Then Mr. Obama and Raul Castro hammered out the rest of this deal in the phone call yesterday.

The first presidential contact since the Cuban revolution more than 50 years ago, and then at the White House at the Hanukkah celebration, the president talked about his phone call with Alan Gross.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I spoke to him on his flight. He said he was willing to interrupt his corn beef sandwich to talk to me. I told him he had mustard in his mustache. I couldn't actually see him.

Needless to say, he was thrilled and he landed at Andrews in a plane marked the United States of America. He will be getting the medical attention he needs. He is back where he belongs in America with his family.

(END VIDEO CLIP)

ACOSTA: A senior administration official said Cuba's former leader, Fidel Castro, was not involved with the negotiations for this deal. As for a presidential trip to Cuba, the White House is not ruling one out noting Mr. Obama was in China last month. And China, they say, still has its own human rights issues and issues when it comes to democratic freedom -- John.

BERMAN: Thanks, Jim. This morning, there is a raging political debate over this move. Opponents say it throws the Castro regime a lifeline instead of trying to squeeze it out of power. Two Republican senators, Cuban-American, both possible presidential candidates denounced the agreement.

(BEGIN VIDEO CLIP)

SEN. MARCO RUBIO (R), FLORIDA: This policy contradiction is absurd. It is disgraceful for a president who claims to treasure human rights and human freedom.

SEN. TED CRUZ (R), TEXAS: We have seen for six years under this administration is we have been consistently alienating our friends and allies and at the same time, appeasing and coddling our enemies.

(END VIDEO CLIP)

BERMAN: You heard Marco Rubio. He vowed to block the ambassador nomination to Cuba. Cuba admits to harboring fugitives wanted by the United States, including some accused ever terrorism.

One of the most contention parts of the agreement is release of three Cubans convicted of espionage in the United States. This is their arrival back in Cuba after their release.

The final members of the so-called Cuban five, part of the 1990s era spy ring infiltrated military installations in South Florida. One of the men was convicted of conspiracy to commit murder for his role in the downing of the planes flown by the exile group "Brothers to the rescue." Family members of pilots killed in that 1996 incident are furious.

(BEGIN VIDEO CLIP)

MAGGIE ALEJANDRE-KHULLY, BROTHER KILLED: Mr. Gross is no way in this equal to those who have blood on his hands.

(END VIDEO CLIP)

BERMAN: In South Florida, where so many Cuban-Americans now live, a mix on the deal. Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The last six years, this administration has been negotiating with Cuba, everything in exchange for nothing.

UNIDENTIFIED MALE: Unlike many in my community and I believe and many in my community believe that Cuba's best days have not yet been seen.

(END VIDEO CLIP)

BERMAN: Now as Jim Acosta reported, Pope Francis was a critical part of the deal to normalize relations with Cuba. He made a plea with President Obama and Raul Castro this summer.

For more on the role of Pope Francis, let's go to Delia Gallagher in Rome with more.

DELIA GALLAGHER, CNN INTERNATIONAL CORRESPONDENT: Good morning too, John. That's right. The Vatican is confirming the pope's role in the negotiations. He did indeed were letters to President Obama and President Castro urging them to talk and that he provided the Vatican as a neutral place for the talks to happen.

And indeed we know that did happen in October with representatives from both countries. What we see, John, is a kind of hallmark of pope Francis' diplomacy so far. Something he did this summer with Israel and Palestinian authorities when he said come to my house at the Vatican for talks.

He knows the Vatican is a relatively neutral place for countries to come and talk and he has the moral authority, perhaps one of the few in the world, to kind of tell them this is the place and this is the time and please come.

That being said, John, we should say that as much as the pope deserves credit in this, he would be the first to say that it is also thanks to many years of patient Vatican diplomacy. The Vatican has never cut off ties with Cuba.

You remember in 1998, John Paul II was the first pope to go to Cuba, in a historic trip. At that time, Pope Francis wrote a book about the dialogues with Castro and John Paul II.

We see a keen interest even then. Certainly as much credit goes to the pope. It also goes to the Vatican diplomacy which has a long history of keeping talks open and dialogue with Cuba -- John.

BERMAN: I was there in 1998 when Pope John Paul II was in Cuba. We see right now the product of many, many years of diplomacy. Delia Gallagher for us in Rome, thanks so much.

It's 37 minutes after the hour. The embargo against Cuba, that is not over. It is still in place. Nevertheless, American businesses already salivating at the possibility of a new relationship with Cuba. Cristina Alesci is here with that. Good morning.

CRISTINA ALESCI, CNN MONEY CORRESPONDENT: That's right. If the sanctions are eventually lifted, we are talking more than just a boost in car sales. We are talking about many American companies that could profit from the increase in trade.

First off, companies that make inexpensive staples like soap and packaged goods could benefit. It could be a big win for American carmakers, plus another big one, travel. Cuba could become a huge destination for Americans.

In fact, shares of Carnival and Norwegian cruise lines jumped yesterday on the news. Americans could be looking at $1.2 billion in sales. Cuba could get another $700 million a year. This is going to really change the country.

You had the benefit of visiting before the sanctions were lifted. You could really compare what Cuba will look like and what it was.

BERMAN: It is a city trapped in time. Trapped in 1959. You can see the old cars on the streets. I'm fascinated to see what happens with this deal. Cristina Alesci, I appreciate it.

It's 39 minutes after the hour. Terror threats, cyber-attacks. Now believed to be from North Korea. Today, U.S. investigators are expected to reveal what they have found about the Sony cyber-attack. That as executives have canceled the release of the film "The Interview."

Our senior media correspondent Brian Stelter breaks it all down for us right after the break

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BERMAN: A stunning turn of events for the entertainment business and issue of freedom of speech and freedom of expression. Sony decided security threats were too much to risk and canceled the release of the movie "The Interview." Christmas day debut is off. Sony has no plans for any digital release.

This follows the huge cyber-attack of the company information, now allegedly believed to be by North Korea. Where does Sony go from here? Where does the entertainment industry go from here?

Does this mean other companies will be forced to back down at the threat of a cyber-attack? So many issues to discuss here. Let's bring in Brian Stelter, host of "RELIABLE SOURCES." I got to say Sony just pulling the picture all together. Shocking.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: It really is. The last message I got from a Sony executive last night is a text message of unbelievable. One by one, these theater owners backed away from the interview. That left Sony little choice but to go ahead and cancel. They actually said, because people like me were asking, maybe online or Netflix.

They actually came out and said, as you said, they will not release it digitally either. What they are trying to do say we are done with this movie. Hackers, you don't have to release our sensitive information. You've won. It's over.

BERMAN: That's $44 million down the tubes. Not to mention the advertising and marketing and future earnings. It costs a lot of money. They are saying it is not worth it right now.

What's the reaction from actors and directors and content producers? Look, I don't know this was going to be a Stanley Kubrick film, but it is art. It is freedom of expression which has been stifled.

STELTER: And a lot of folks would say we have to protect things like this that aren't necessarily the most artistic works in the world, but which are controversial and provocative and need protection.

We have not heard from Seth Rogen and James Franco, the stars of the film. The closest we've heard from them is Rob Lowe of all people who run into Seth Rogen at the airport, at JFK.

He said, "Both of us have never seen or heard anything like this. Hollywood has done Neville Chamberlain well today." There's been a lot of that, a lot of that overnight from people like Ben Stiller and Jimmy Kimmel and Aaron Sorken, almost unanimously decrying this thumb on freedom of expression.

This was a conundrum for Sony and the theatre owners. They were under tremendous pressure not to show this film next week. So there was no -- you can understand both sides of the thing. Think about all the movies that are coming out next week.

"Unbroken" and "Into the Woods" and all of these other films that are supposed to have big blockbuster openings. A lot of concern from theater owners and other studios that people would not go to the movies next week because of the threat.

BERMAN: If you don't like a movie or like what is in a movie, do you just threaten to cyber-attack? Send a threatening e-mail and that's going to cause someone to backdown?

STELTER: That is what Jimmy Kimmel said. This sets a terrible precedent. I think whether you're a comedian or actor, or writer or you want to be some day in Hollywood. You are very worried about how this is going to go down next time. Nobody will forget what happened in this case.

BERMAN: You know one of the things that I supposed is unknowable is this film "The Interview." I don't think anyone thought this was going to be "Titanic," a movie that makes a billion dollars. You know, it's a comedy. Did the movie theater owner say, you know what, it's just not worth it. This is not going to make enough money anyway for us to make some kind of a stand for freedom of speech.

STELTER: You're on to something there because the other movies, "Hobbit" these will be bigger films. Weirdly, those other films may benefit. There will be fewer films when you see movies.

BERMAN: This will move from the realm of entertainment, when the U.S. investigators found the direct ties back to North Korea for the hacking. Stay tuned for that. Brian Stelter, great to have you with us, I appreciate it.

A lot going on today needless to say Let's look at what is coming up on "NEW DAY." Michaela Pereira and Alisyn Camerota joining me.

ALISYN CAMEROTA, CNN ANCHOR, "NEW DAY": You get both of us, John.

BERMAN: My dream.

CAMEROTA: We are following President Obama's historic decision to restore diplomatic relations with Cuba. Chris Cuomo is in little Havana. That decision has sparked strong and divided reaction there. Some feel betrayed. Others are elated. What exactly does this policy shift mean? Is it a step toward lifting the embargo?

MICHAELA PEREIRA, CNN ANCHOR, "NEW DAY": So clearly we will look at both sides of the story. We will speak with lawmakers who have been working to open relations with Cuba. We will speak with others who think the change is a mistake. They plan on blocking the president's new policy, a lot of emotion and history. A lot to take a look at.

BERMAN: I woke up this morning still saying wow. After so many years, I cannot believe this happened as big as it did. Alisyn and Michaela, see you in a bit. It's 47 minutes after the hour, happening right now, Pakistan vows to fight back. Those attackers behind the school massacre. Our CNN crews will take you inside the scene of the horrific event. That's next.

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BERMAN: Breaking news this morning, the Nigerian terror group Boko Haram has kidnapped at least 185 women and children and killed apparently 32 men. A local government official says Boko Haram militants stormed a village near the town where Boko Haram gunmen killed more than 200 school girls last April.

In Pakistan, in the wake of Tuesday's horrific school attack on there, leaders are asking Afghanistan for help. The two countries have spent years torn apart by tribal combat. They face a common enemy. Terrorism along their border.

No act of terrorism more barbaric than the murder of more than 130 children on Tuesday. Our senior international correspondent Nic Robertson is in Pakistan. You were live in the school and saw the scenes of the carnage first hand.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, John, very, very horrific, and what you see behind me are protests. Local people here are angry. They say the government is not doing enough to protect them from the Taliban. They feel threatened and afraid. They are concerned about what may come next.

They just walked down the road a few minutes ago. Behind the walls in the school is still the carnage and aftermath of the Taliban committed in the school. The army took us in one classroom. It was a computer lab. Computers down either side of the wall.

As soon as you go in, it is clear what happened there. The chairs are still next to the computers on the floor, pools of blood. The Taliban gunned down the children working at their computers. They had no time to get away.

In the auditorium, the army showed us where the children were gunned down. They tried to get out of the building through two doors of the large auditorium. The Taliban mowed them down with the automatic weapons.

The carpets are thick with blood. Forensic teams are in there going through the horrific debris. No doubt who is responsible and what happened, John.

BERMAN: Nic Robertson in Pakistan, thank you so much.

It's 53 minutes after the hour. Boston marathon bombing suspect Dzokhar Tsaarnaev, those images, Nic, horrifying to a 30-count indictment. The blood on the floor. Interesting to see the results of the terror. You can hear the anger in the protesters behind you. Nic, thank you. Boston marathon suspect Dzhokhar Tsarnaev will make an appearance in court this morning. He will attend a pre-trial hearing before the murder trial that begins on January 5th. Lawyers have filed a motion to delay his start date. The judge could rule on that request today. The 21-year-old has already pleaded not guilty to a 30-count indictment.

New trouble for Uber, a driver accused of rape. What the company says about that and what it says it will do. We'll tell you that with an EARLY START on your money next.

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BERMAN: All right, time for an early start on your money. Cristina Alesci is here with that. Good morning.

ALESCI: Yes, the stock market is giddy this morning. It's a great day so far. Big gains in Europe and Asia this morning and look at this, Dow futures are up more than 200 points right now. I'm looking for a pop at the open. This is after a huge day yesterday.

The Dow had its best day of the year. It closed up 288 points or 1.7 percent. Why all the optimism? A rally in oil prices was a good sign for energy producers, but big reason was the Federal Reserve. The fed said yesterday it is not raising interest rates anytime soon.

The language that everyone was watching for that promised to keep interest rates low for a considerable time, that did not change. Fed Chair Janet Yellin hinted it will be closer to the middle of next year before the fed makes any move.

She stressed how the economy is doing. That is what Wall Street wanted to hear. Her comments snapped stocks out of a three-day losing streak. Powerful woman right there.

Now Uber is trying to clean up its bad reputation. It has been at the center of scandals including allegations of drivers raping and assaulting passengers.

Now the company is working on new technology to monitor drivers and improving the background check practices. Uber is setting up a rapid response team for emergencies. This is amazing to me. We have body cams on cops and possibly now car cameras for Uber drivers. Everybody will be watched closely.

BERMAN: They have to break the streak of bad press. Cristina Alesci, thanks so much.

The historic agreement resumes a relationship with Cuba. President Obama really shocks so many people with that announcement. "NEW DAY" picks up the story now.