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Early Start with John Berman and Zoraida Sambolin

Turmoil in Yemen; Time Running Out for ISIS Hostages; Boehner Bypasses Obama, Invites Netanyahu; Michael Brown Shooting: No Charges for Officer Wilson; France Ramping Up Anti-Terror Capability

Aired January 22, 2015 - 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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JOHN BERMAN, CNN ANCHOR: Chaos in Yemen, threatening the U.S. efforts to fight terror. This American ally pushed to the brink of collapse as al Qaeda in that country boosts its presence and issues a new warning to the West. We're live with the very latest this morning.

CHRISTINE ROMANS, CNN ANCHOR: Time ticking down for two men held hostage by ISIS. Will Japan pay their $200 million ransom? We are live in Tokyo with the latest.

BERMAN: No charges expected for the former police officer who shot and killed unarmed black teenager Michael Brown. Why the Justice Department is not going to bring charges against Darren Wilson. That's ahead.

Welcome back to EARLY START, everyone. I'm John Berman.

ROMANS: I'm Christine Romans. It's 30 minutes past the hour.

We begin this morning with a crisis in Yemen, a crisis that could al Qaeda a new foothold and new power. There is now a tentative deal between the U.S.-backed government and rebels who have been attacking the president's palace for days. It's not clear whether this truce will hold any longer than the last one.

Yemen is now a hotbed of terrorism. Al Qaeda's affiliate there claims to have planned and funded at least some of the Paris terror attacks. The leader of al Qaeda in the Arabian Peninsula released a new video this Wednesday, calling for jihadist to launch lone wolf attacks at home in Europe and the U.S. And ISIS is now known to be active and recruiting in Yemen.

The Obama administration sees Yemen as crucial to the war on terror. This morning, that partnership is anything but stable.

Let's bring in senior international correspondent Nic Robertson with the latest on the turmoil.

And, good morning, Nic. This is a development that is certainly troubling for counterterrorism experts.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Absolutely. I mean, look, state -- regional experts there believe that Yemen is tipping towards a failed state. You have the Gulf Cooperation Council, this is the major oil-producing nations in the Gulf meeting to discuss what is happening. Yemen, right on the border of Saudi Arabia, very close to the strategic seas where a lot of the world's oil flows there. So, a major concern there.

But there's a very significant concern also, for Saudi Arabia, because the Yemen branch of al Qaeda, if you will, threatens them. But as we have seen in the past, al Qaeda and Yemen is capable and intent on trying to attack the United States, claiming to be behind also the attacks in Paris over the past few weeks. So, what we are seeing, the picture emerging, if Yemen tips more towards a failed state, if the Houthis agreement with the president continues to be shaky or is not honored, there will be a greater breakdown of power, a greater vacuum of power, al Qaeda will leverage this vacuum and space, as much it has done in other countries like Iraq and Syria as we have seen that in the past.

And you have on top of that the Houthis being essentially viewed as on the one hand getting support from Iran, on the other hand as being a branch of sheer Islam. The Sunni al Qaeda will exploit that to try to grow its own core strength in Yemen to not only fight the Houthis, but then export terror back to the West, beyond the borders as they are stating as the leader in Yemen is stating. It is not an idle threat. They have done this before -- Christine.

ROMANS: Not an idle threat. All right. Nic Robertson, thank you so much for that, Nic, this morning.

BERMAN: Japanese government officials are trying to save the lives of two hostages. They are scrambling this morning for means to communicate with ISIS. The Islamic terror group is demanding $200 million or says it will execute these two men by Friday. Japan's prime minister has cut short a trip to the Middle East to deal with this crisis.

Secretary of State John Kerry is meeting in London this morning with partners in the coalition trying to defeat ISIS.

I want to turn now to CNN's Will Ripley who's on the ground in Tokyo with more of these Japanese efforts to save these two hostages, Will.

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: Yes, John. We know that the Japanese government is trying to establish a line of communication with ISIS. Here we stand 24 hours away from their murderous deadline. And as far as we know, the latest official word, there has been no channel of communication open with the terrorist group that has killed five people on video since last August and threatens to do the same to two more -- two innocent Japanese men who could very well be dead by this time tomorrow, if some sort of a deal is not worked out.

It's a very difficult reality for people in the pacifist country to wrap their heads around. But at the same time, as you can imagine, there is a real struggle here to think about if money were to go in the hands of ISIS, even if it wasn't $200 million, but a smaller ransom, would that give the terror group more tools to do more harm to more people? That's the real struggle. Public opinion here is split, as most people in this country are certainly banding together and their feeling of fear for these two men and anticipating very great sadness if ISIS does follow through with its threat, again, less than 24 hours from now, John.

BERMAN: All right. Will, important information right there. Every country deals with the situation differently. But one thing that is not different is the sympathy people feels for the families and the people involved. Thanks, Will.

ROMANS: All right. A grand jury has indicted an Ohio man who allegedly plotted to bomb the U.S. Capitol. Twenty-year-old Christopher Lee Cornell faces two counts of attempted murder of government employees. Each count carries a possible 20-year sentence. He's also facing firearm charges. Cornell was arrested outside a suburban Cincinnati gun shop last week after purchasing two M-15s assault weapons and 60 rounds of ammunition.

BERMAN: The White House calls it a breach of protocol. This is as House Speaker John Boehner invited Israeli Prime Minister Benjamin Netanyahu to address a joint session of Congress next month and make a case for new sanctions against Iran. That is a policy the president is against.

Let's get more now from CNN's Dana Bash.

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DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: John and Christine, GOP sources I talked to admit that Congress does traditionally coordinate with the White House before asking a world leader to address Congress. But not this time, it was a back channel between with John Boehner and Benjamin Netanyahu. They both want Congress to pass new sanctions against Iran which the president opposes.

Is this just a way to poke the president in the eye on an issue like Iran where you know he very much opposes what you want to do?

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: I did not consult with the White House. The Congress can make this decision on its own.

I don't believe I'm poking anyone in the eye. There is a serious threat that exists in the world. The president last night kind of papered over it. The fact is that there needs to be a more serious conversation in America about how serious a threat is from radical Islamic jihadists and the threat posed by Iran.

BASH: Just hours earlier at the State of the Union Address, Obama warned more sanctions against Iran would jeopardize delicate diplomatic nuclear negotiations and as the president spoke, he had no idea that John Boehner sitting behind him had been planning for weeks to bring the Israeli prime minister to stand in the very same place and tell Congress the opposite. The best way to push Iran is to enact more sanctions.

Now, Boehner is taking advantage of a long history of tension between Netanyahu and Obama. And the speaker is also helping Netanyahu. He is a hawkish Israeli leader Republicans like. Israeli elections are scheduled for next month. And a high profile speech on a nuclear Iran which Israel sees as an existential threat could help -- John and Christine.

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ROMANS: All right. Dana Bash, thank you for that in Washington, Dana.

Historic high level talks on normalizing relations between the United States and Cuba being held in Havana. The initial discussions will focus on trade and travel and reopening embassies in both capitals. Talks come just weeks after President Obama and Cuban leader Raul Castro formally ended six decades of official estrangement between the two countries.

BERMAN: An abrupt about-face by House Republicans. They have dropped plans to debate a bill that would ban virtually all abortions after 20 weeks. Objections from some women on the Hill and others left Republican leaders short of the votes they need to pass this measure. The vote had been scheduled to coincide with the gathering of anti- abortion activists, an annual gathering that marks the anniversary of the Supreme Court's Rowe versus Wade decision that legalized abortion.

ROMANS: President Obama issuing an executive order to better coordinate federal programs in the Arctic Ocean. The president says this is a necessary response to decades of climate change that had transformed the Arctic, its features and its accessibility. One Alaska senator says the order does not do enough and focusing too much on climate change and too little on development and build up of critical infrastructure.

BERMAN: On the subject of climate change, the Senate is on record saying climate change is real and not a hoax. That measure with that wording passed by a 98-1 margin. But senators voted down a pair of measures that said tat global warming is created by human activity, or contributed at least to by human activity. So, they say climate change exists, but they did not pass the measure saying humans contribute to it.

The president is still on the road, selling his middle class economic program and other ideas that he presented in the State of the Union. He delivers a speech today at the University of Kansas, and after that, he turns to Washington where he will be interviewed by several hard-hitting YouTube stars.

ROMANS: YouTube stars, something you couldn't even have said, you know, ten years ago, five years ago, two years ago, YouTube stars.

All right. Time for an early start on money, folks. Asian shares they ended higher. European shares aren't moving much quite yet. There's a big story developing there. That's the European Central Bank expected to announce a massive bond-buying stimulus program later this morning. U.S. stocks were also up. Yesterday, stocks climbed for the third day

in a row. That's the longest winning streak so far this year. It tells you what this year has been like, right?

Layoffs coming at two big American companies. Yesterday, eBay announced 2,400 job cuts. That's about 7 percent of its workforce.

American Express is cutting 4,000 jobs this year, about 6 percent of its staff. Both companies reported a rise in profits last quarter.

BERMAN: Federal investigators not expected to file charges, no charges coming in Michael Brown's deadly shooting. We'll tell you why Officer Darren Wilson will not face a federal jury. That's next.

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ROMANS: The Ferguson police officer who shot and killed unarmed teenager Michael Brown will not face criminal charges. The FBI has completed its investigation of Darren Wilson and the case handed to federal prosecutors. And sources telling CNN the Justice Department determined there is not enough evidence to file any charges against Wilson. The formal announcement is expected before Attorney General Eric Holder leaves office this spring.

BERMAN: New video this morning of a deadly police shooting a New Jersey street. The chilling encounter captured on the dash cam video of Bridgeton, New Jersey. Officers pulling over a blue Jaguar for running a stop sign late last month when suddenly the man inside the car defies the police order, emerges from the car, and really, just frankly -- all hell breaks loose.

(BEGIN VIDEO CLIP)

OFFICER: Show me your hands! Show me your (EXPLETIVE DELETED) hands. Show me your hands. Don't you (EXPLETIVE DELETED) move! Don't you (EXPLETIVE DELETED) move!

Get him out of the car, Rog. We've got a gun in his glove compartment. I'm going to shot you. You are going to be (EXPLETIVE DELETED) dead! I'm telling you. You reach for something, you going to be (EXPLETIVE DELETED) dead! I'm telling you. I'm telling you. Keep your (EXPLETIVE DELETED) right there.

Jerome, you reach for something, you're going to (EXPLETIVE DELETED) dead. He's reaching, he's reaching. Show me your (EXPLETIVE DELETED) hands!

No, you're not! No, you're not! No, you're not! Don't you (EXPLETIVE DELETED) move!

(GUNSHOTS)

OFFICER: Don't you (EXPLETIVE DELETED) move!

(END VIDEO CLIP) BERMAN: Dramatic moments there. Thirty-six-year-old Jermaine Reid was killed by officers. The use of deadly force is now being investigated by county prosecutors. Now, we are told police did recover from the car and Reid did have a deadly criminal record, spending 13 years in prison for shooting at three state troopers as a teenager.

ROMANS: City council members in Newtown, Connecticut, voting to tear down the home where Sandy Hook shooter Adam Lanza lived. The yellow colonial sits on a grassy two-acre hill.

Lanza shot and killed his mother inside that home before heading to nearby Sandy Hook Elementary School where he killed 20 children and six educators before taking his own life. There is no timetable for demolition. A council member says it will be scheduled as soon as practical.

But that home on the hill is a very painful reminder every day for people in Newtown.

BERMAN: Breaking overnight, fire crews battle a massive fire that tore through a New Jersey apartment complex. It would be seen from miles around. Hundreds of people have been displaced from The Avalon at Edgewater Complex right at the Hudson River.

So far, there are no reports of any injuries. Officials say everyone in the four-story building appears to have gotten out safely, which is wonderful news. No word yet on what caused that fire.

ROMANS: We are learning more about that fatal metro incident in Washington, D.C. Members of the National Transportation Safety Board met Thursday, calling what happened earlier this month on the yellow line completely unacceptable. One member said the train's air intake system was not turned off, meaning it drew smoke into those cars. One passenger died, scores of others were sickened by that smoke.

One jaded New Yorker said to me, who needs terrorists when you just can't get off a train that malfunctions normally.

BERMAN: New details emerging in the shooting at the Brigham and Women's Hospital in Boston. The surgeon who was killed had treated the mother of the gunman. Stephen Pasceri shot Dr. Michael Davidson in a foyer before turning the gun on himself. Pasceri's sister says he blamed Davidson of their mother's death in November.

This is a tragedy. It is a wonderful institution and people inside today are just shocked.

ROMANS: Jay Leno coming to the defense of women who have accused Bill Cosby of sexual assault. The former "Tonight Show" host says he doesn't understand why it's so hard to believe dozens of accusers. He says, quote, "You go to Saudi Arabia and you need two women to testify against a man. Here, you need 25."

We're also hearing from Malcolm-Jamal Warner who played Cosby's son on his NBC sitcom. He tells "Billboard" magazine it is difficult to see Cosby faced allegations of sexual assault and calls him an important mentor and friend.

BERMAN: Happening today, the coach of the New England Patriots, the man in the hood there, Bill Belichick, will speak with reporters for the first time since this whole deflate-gate scandal emerged. Word that the NFL is investigating the Patriots because 11 of the 12 balls they used in the first half of the AFC championship game had too little air.

So, what will Bill Belichick say about the controversy? Well, not much. He almost never says much of any value when he gives news conferences. He is a man of few words.

Some NFL players, including people who are playing against the patriots next week are coming to the Patriots defense. Players on the Seahawks say the pressure in the ball, too much or too little, would not make much of a difference in a game.

ROMANS: Then, why is it a rule?

BERMAN: It is a rule because the officials say there is a change to the ball and how you can grip it if there is too little or too much. And that's why they have a rule there. If they broke it, they broke it.

ROMANS: All right. Let's talk about the weather.

Winter storms set to dump snow across the Southern Rockies and the Southern Plains. So, let's get to meteorologist Derek Van Dam for an early look at your weather this morning.

DEREK VAN DAM, AMS METEOROLOGIST: Good morning, Christine and John.

Taking a look at temperatures across the U.S., 46 near the capital, 39 for the Big Apple. Temperatures will stay above freezing from Dallas to Little Rock. The storm system across the region bringing some rainfall, but just to the west across New Mexico. We have four to six inches of snowfall near Albuquerque region.

We do have a major storm developing across the Gulf Coast. Look at the rainfall totals over the next two days, locally 3 to 5 inches from eastern Texas through the Carolinas. This storm is going to pick up a significant amount of moisture and move along the East Coast, bringing the potential of a nor'easter for the major cities, including New York, Philadelphia and Washington, D.C. -- the exact path still uncertain. Something we will keep a close eye on.

Regardless, we have an active weather pattern with several inches of snow possible across the East Coast of the U.S. That is for your Friday night and into Saturday. Behind the storm system, the cold air settling in for the Big Apple.

That is all the time we have for now. Back to you.

BERMAN: Thanks for that.

France takes new steps to fight terror as a new warning hovers. Suspects in the Paris attacks still on the run. We are live with the latest.

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BERMAN: All right. New this morning, France is rolling out sweeping new measures aimed at safeguarding the country from terror. This, of course, after the wake of the massacres in Paris, inspired, perhaps orchestrated by Islamist terror groups. The French Prime Minister Manuel Valls announced what he calls exceptional measures. These measures including almost half a billion dollars and hiring thousands of new law enforcement personnel.

Law enforcement sources tell CNN that the Paris attackers may have urged their associates to leave France weeks ago. Amedy Coulibaly's wife Hayat Boumeddiene, you're recall, she left, seen here in Syria, to go to Syria. There is fear that some of these associates could try to return to Europe to launch more attacks.

Let's bring in senior European correspondent Jim Bittermann now.

Good morning.

JIM BITTERMANN, CNN SENIOR EUROPEAN CORRESPONDENT: Good morning, John. Those off to Syria are out of reach as far the French government is concerned and they rally don't have too much control. They know who they are and they can certainly watch the incoming flights from Turkey and other parts of the region.

But there is worry there is anything else about what Manual Valls said, the prime minister. There's 3,000 people who need surveillance in France. These are people who for one reason or another, the French authorities believe have been radicalized.

And so, all of the hiring that's going on, one of the things it's going to be doing -- people that will be hired are people who are going to be doing that surveillance. They will be working on what they call the Internet jihadist sites, the recruiting sites and whatnot. We're not going to see these people on the streets. It's not going to be like the military or the police. They're going to be intelligent agents who are behind the scenes, keeping track of a number of people the French government thinks are awfully suspicious -- John.

BERMAN: Three thousand is an enormous number.

All right. Jim Bittermann for us in Paris -- thanks so much.

ROMANS: All right. To Ukraine now, 10 people killed, another 20 injured, as fighting intensifies in Eastern Ukraine. Someone is shelling civilians areas in Eastern Ukraine. It is not clear who. A new agreement had been reached by Russian and Ukraine diplomats settling on a dividing line between the sides. Both camps are to pull back their weapons nine miles from that demarcation line. But there was no agreement made to withdraw all those troops, and a bus stop in Donetsk shelled (AUDIO GAP) casualties.

Fuel costs are plunging, including the price of jet fuel. So, why are airfares still so high? We will have that answer in your money next.

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

European shares looking cautious ahead of the decision from the European Central Bank. That happens later this morning. Why is this important? Well, the bank is expected to announce a massive bond- buying program worth 50 billion euro a month. That's about $58 billion. That is a stimulus into the European economy that would be important.

U.S. stock futures pointing higher right now. Stocks yesterday in the U.S. were up for a third day in a row.

Oil prices down a bit more this morning. The past few days, oil has been fluctuating between, I don't know, $45 and $49 a barrel. But look at how that goes, historically. The freefall seems to be on pause for now. But remember, oil was above $100 a barrel last summer.

So, this is painful for energy companies, especially those in the U.S. just getting projects off the ground. But it has been great for consumers. The national average for a gallon of regular gets, wow, $2.04 a gallon for regular. That's the lowest in about six years. I saw it for $1.87 in my neighborhood yesterday. Really incredible.

So, cheap oil, right? That should translate into cheaper flights. No, it's not. Jet fuel is the biggest expense.

Jet fuel down 50 percent last year. But ticket prices are increasing. Ticket prices up 2 percent.

What gives? Demand. Airlines filled a record 83 percent of seats last year. Why lower prices when people are still flying? Passengers aren't benefitting but investors certainly area. Southwest was the S&P 500 best performing stock last year, up 121 percent.

When you look at the earnings of the airlines, you can see for years they can barely get by. They could barely get by, right? Put on all the fuel surcharges and now they are charging for everything you do on the plane, your seat assignment. The whole bit. Jet fuel goes down. They are making money again.

BERMAN: No, I mean, look, they are in this for profit, clearly.

ROMANS: Right.

BERMAN: They are trying to rake it in.

ROMANS: I thought they were in business to be nice and get me places.

BERMAN: It is not being nice and getting you places. It is about making money, clearly, which they're doing a lot of right now.

EARLY START continues right now. (MUSIC)