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Early Start with John Berman and Zoraida Sambolin

Negotiations With ISIS Fall, Deadline Passes for Prisoner Swap; Released Gitmo Prisoner: Returning to the Fight?; Hernandez Murder Trial Begins

Aired January 30, 2015 - 04:00   ET

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

JOHN BERMAN, CNN ANCHOR: Happening now, the deadline has passed to save two hostages held by ISIS. The negotiations with the terrorists collapsing after ISIS fails to prove that these men are alive. What we're learning this morning and what comes next. That's just ahead.

Returning to fight? CNN has learned that a Guantanamo Bay prisoner released in exchange for Sergeant Bowe Bergdahl has tried to contact the Taliban. We have the details, ahead.

And the case against Aaron Hernandez. The former football star now on trial for murder. An explosive day in the courtroom. What we can expect moving forward, that's coming up.

Good morning, everyone. Welcome to EARLY START. I'm John Berman. It's Friday, January 30th, 4:00 a.m. East. Christine Romans is on assignment this morning.

And the fate of the two hostages hangs in the balance this morning. ISIS has threatened to kill these two men if its demands were not met by sunset. That time has passed. In a series of audio messages purportedly posted by ISIS, Japanese journalist Kenji Goto passed along the terror group's demand for a prisoner swap. That's swap is supposed to be of convicted terrorist on death row in Jordan, in exchange for Jordanian fighter pilot Muath al-Kasasbeh, and Kenji Goto. ISIS said that if the terrorist Sajida al-Rishawi was not handed over, it would kill both hostages.

The sunset deadline has passed. Still, no word. CNN cannot independently authenticate the messages, but officials in Jordan and Japan are taking this very, very seriously.

Now, Jordan says it is willing to make a deal, but it wants proof that its pilot is alive. Japan's government is under intense pressure to Goto's release, but dependent on Jordan to make the deal. It is complicated, it is delicate and it does not appear to be moving forward.

Tracking events for us in Tokyo, CNN's Will Ripley.

Will, what's the latest?

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: Well, John, now that we are almost 24 hours past that deadline, this is really a critical and certainly a nerve-wracking time for the Japanese government, for the Jordanian government and the families of the two hostages. The reason is this: we have seen ISIS deadlines passed several times now over the last week. And after that first ISIS video, when the deadline passed, it was radio silence for about 24 hours. And then ISIS came out with a new propaganda video.

And, of course, you remember, that was the one where Kenji Goto was holding the picture of Haruna Yukawa, his friends, beheaded body. You have that to worry about right now for the families who are in limbo right now.

You also have a situation where the Japanese government still, and this is new, they are telling us they still have not made direct contact with ISIS. We don't know if that's the case of the Jordanian government. We've heard about some indirect communication about back channels. But no direct ISIS to Japan communication, even though Kenji Goto's wife, Rinko, in a statement that was released yesterday, she confirmed that she had spoken directly with ISIS.

The Japanese government, though, says they have not attempted to reach ISIS through that e-mail -- the e-mails that Rinko and ISIS have exchanged. We don't know what the procedure is. We don't know the procedure. We know Japan is saying this is a fluid, and very dangerous situation.

As of right now, the fate of these two hostages, Muath al-Kasasbeh, the Jordanian pilot, and Kenji Goto, the Japanese journalist, still unknown. Both men very much in peril right now.

BERMAN: And what's the status of the relationship between Japan and Jordan right now? Is that relationship tense as each nation tries to get each man back essentially?

RIPLEY: This is obviously a tense situation. You heard Jordanian government officials referring to the Japanese as their friends. Japan and Jordan are allies. Of course, Jordan hopes to receive some of the humanitarian aid that Japan has pledged the refugees from Iraq and Syria.

And Japan has also put in a new request to the Jordanian government for additional protection for its citizens and for its diplomats who are in Jordan right now. The reason for that, we're told, is not because of any specific threat, but simply because of the fact that given the circumstances that are happening at this moment, they feel the Japanese citizens in Jordan and in the Middle East need to be especially vigilant as the situation continues to unfold.

BERMAN: All right. Will Ripley for us in Tokyo, following the situation. Let us know if there are developments.

Meanwhile, happening overnight: U.S. officials have evidence they say that one of the Taliban detainees released from Guantanamo Bay in exchange for Sergeant Bowe Bergdahl may have tried to return or may be trying to return to militant activity.

Our Pentagon correspondent Barbara Starr is following these developments. Barbara has more -- Barbara.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: John, it's happened before, but this time it is politically charged. The U.S. believes one of the five Guantanamo Bay detainees sent back to Persian Gulf nation of Qatar last year in return for getting Sergeant Bowe Bergdahl back, that one of them may be returning to a militant lifestyle.

The U.S. conducts classified surveillance of all five men's communications. Any communications they have. And a couple of months ago, apparently, something popped up that is causing concern that one of the men may have been reaching out to militants.

And that would be against the regulations that the U.S. set to monitor these men and to release them back to Qatar. So, there is a good deal of concern about this. Right now, the question is, of course, how much of a threat does this pose. Some officials, saying not a direct threat. But I will tell you, other U.S. officials telling me there is a difference of opinion inside the administration that there is some opinion that this is a very serious matter -- John.

(END VIDEOTAPE)

BERMAN: All right. Barbara Starr for us at the Pentagon, thanks so much.

New this morning, an Egyptian terror group affiliated with ISIS killed at least 26 people and wounded dozens more in the town of Al-Arish, in a series of coordinated attacks. The Egyptian news site reports the near-simultaneous assaults hit army and police positions. The jihadist group Ansar -- an Islamic group there claimed responsibility for the attacks involving car bombs and mortar rounds.

CNN's Ian Lee joins us from Cairo in 15 minutes to discuss this attack.

In Afghanistan, the Taliban this morning is claiming responsibility for an attack that killed three American contractors at a military base attached to the main airport in Kabul. A U.S. military official says it looks like it could be an insider attack. But the circumstances are still being investigated.

The Taliban statement says the shooter died in that attack.

BERMAN: The turmoil in Yemen having a big impact in the U.S. fight against al Qaeda in the Arabian Peninsula. "Reuters" report that new gaps are emerging in intelligence ever since Iranian-backed rebels seized control of the government, including defense installations which used to provide information to the United States. The major concern now, a lack of intelligence could increase drone strikes killing the wrong people and increasing anti-American sentiment.

The White House this morning is responding to demands made by Cuban President Raul Castro as a condition for restoring diplomatic relations between the two countries. Those demands include returning the Guantanamo Bay Naval Base to Cuba and lifting the decades old trade embargo. The Obama administration is throwing cold water on Castro's demand and admits that the bold outreach they made in December will take time.

(BEGIN VIDEO CLIP)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Is the United States willing to do any of those things?

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Well, I think, Jim, what this has highlighted is there is a pretty clear difference between reestablishing diplomatic relations and carrying out the longer process of normalizing relations.

(END VIDEO CLIP)

BERMAN: When asked if the United States would actually give up the strategic Guantanamo base to Cuba, Earnest simply said no.

The president officially presents his new federal budget on Monday, his budget proposal on Monday. We already know it blows through the mandatory spending caps imposed by Congress four years ago. The administration plans to ask lawmakers to raise the cap by at least $74 billion, claiming anything less would impact military preparedness and hurt important domestic programs. The president's budget plan will also call for new capital gains taxes and some bank taxes as well.

The Senate following the lead of the House has approved the bipartisan bill to build the Keystone pipeline, which would carry oil from Canada to the Gulf Coast. Nine Democrats joined with 53 Republicans to pass the bill, not though by a veto-proof majority. The Senate and House measures must now be reconciled to a bill that will be sent to President Obama. The president has promised to veto this bill.

Let's get an early start on your money, shall we? Alison Kosik is here.

Hey, Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: We shall. Good morning. Happy Friday to you.

We are watching stock futures. They are pointing lower right now to end quite the rollercoaster week we've had. Yesterday, the Dow broke it's two-day losing streak where we saw the Dow lost a total of 500 points. Now, it did yesterday gain 1.3 percent or 225 points.

Now, one stock that's climbing right now before the bell, Amazon is up 11 percent, because it actually posted a profit last year. Yes, that's relatively rare for Amazon. Can you believe it? Amazon posted strong sales, thanks to good holiday numbers.

We're also keeping our eye this morning on oil prices and they continue to slide. Crude oil is about $44 a barrel right now. That's very close to its lowest level in six years. Gosh, it's tumbled past. A barrel of oil was over $100 last summer. Energy producers, they are keeping output high, demand is low. That's

pushing prices lower. Great for consumers.

I'm a driver. Love it. But if you have anything to do with the oil industry, you are hurting.

BERMAN: I'm old enough to remember when high oil prices were a concern on the economy. Now, it is low oil prices.

KOSIK: That means you're old.

BERMAN: I know. I'm old. That's the headline here.

Thanks, Alison. Appreciate it.

The frantic search for survivors when a maternity hospital explodes. At least three dead, dozens injured. We'll have the details, next.

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BERMAN: At least three people are dead, including a baby, after an explosion leveled a maternity hospital in Mexico City. It happened around 7:00 Thursday morning. A frantic family member stood outside waiting for word of their loved ones. Dozens of injured people rushed to the hospital. Officials say the blast happened after a hose bursts on a truck that was supplying gas to the building.

A big day expected today in the murder trial of former NFL star Aaron Hernandez. The 25-year-old is charged with the shooting death of Odin Lloyd, a semi-pro football player. That happened back in 2013.

In opening statements, defense lawyers said Hernandez had everything in life and no reason to kill. Prosecutors tell jurors that DNA from shell casings and security camera footage connect Hernandez to this crime.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The evidence will show on June 15th, the defendant was unhappy with the victim. He had given Odin Lloyd information about himself. The defendant then called his friends. He set up the meeting with Odin Lloyd. He took steps by using the phone. He drove for more than two hours to get the victim into a secluded area and orchestrated and participated in the killing.

UNIDENTIFIED MALE: Why would he kill his friend Odin Lloyd? Aaron Hernandez had the world at his feet. Aaron Hernandez was planning a future. Not a murder.

(END VIDEO CLIP)

BERMAN: Hernandez faces life in prison if convicted. He is also charged in a separate case with killing two men in a Boston nightclub in 2012. That evidence will not be allowed in this trial.

This morning, police in Los Angeles investigating a fatal hit-and-run accident involving rap mogul Suge Knight. It is not clear if Knight was driving the car when it struck two men in Compton on Thursday, killing one of the men. Knight founded Death Row Records. He was behind the wheel in 1996 when rapper Tupac Shakur was gunned down in his car in Las Vegas.

Big changes are coming to the NYPD. A long list of initiatives includes more time for patrol officers to visit with community members and hear the concerns, along with the plans for a controversial new unit of highly trained officers equipped with high powered weapons to patrol possible terror targets, also protests. Commissioner William Bratton says it is a new patrol model. He is also calling for more stun guns. He eventually wants to outfit the patrol force with body cameras.

Chaos at Quincy Station. Passengers on the red line train in Boston panicking yesterday when smoke began filling the subway. Witnesses say the chaos erupted after an overhead announcement urged everyone to get away from the train now.

(BEGIN VIDEO CLPI)

UNIDENTIFIED MALE: Some big guy decided to kick the glass. He could not open the doors. Let's kick the glass open. So, pretty much busted down the glass.

(END VIDEO CLIP)

BERMAN: You see passengers helping other passengers escaped through broken windows. A transportation authority spokesman insists no train was ever filled with smoke, and passengers were never in danger. The mechanical failure in a propulsion system is being blamed for that incident.

Way to look at this right. This is a car -- wow, pretty much cut in half after a crash in Cleveland. It is hard to believe four people inside survived. Police say two of them ran from the scene. Two others are hospitalized. No word on their conditions or circumstances surrounding that crash.

In Boston, so much snow that finding parking has become difficult. You can see why. People are digging out spaces in front of their homes, but there is nowhere to put the snow.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I used to love it when I was a kid. When you get a car and stuff, it's not the same.

(END VIDEO CLIP)

BERMAN: The city has marked intersections where they plan to remove snow. The excess is being hauled in vacant lots and parks, where it will hopefully be melted off in something that's warm enough.

Though a new storm is headed through New England with up to a foot of snow expected in some areas. Meteorologist Derek Van Dam tracking the latest.

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

Just when we thought the winter weather was over, we focus our attention on a clipper system across the New England coast. Now, we are expecting roughly between two and four inches of snowfall for Boston. We should stay pretty dry near New York.

But the real hefty totals come across the state of Maine. You can see, depending on which computer model you trust, Bangor could experience a foot or more. The few inches of snow expected for all computer models for Boston. This storm system moving through, all that white indicating our snowfall.

We have winter weather advisories and winter storm warnings for the entire state of Maine. Lots of rain across the southwest, including the Phoenix, Arizona region. Not quite sure if you are aware, but a big football game taking place this Sunday, calls for dry weather by the end of the weekend. One to two inches of additional rain before it's all said and done.

One thing I want you to note is that this moisture will travel across the Midwest with a large swath of fairly heavy snowfall from Missouri right through the Ohio River Valley. From there, computer models still uncertain.

We're going to monitor the storm system for the potential of snow along the East Coast as well by Tuesday. One thing is for sure, the temperatures will remain very chilly with the exception of today. Temperatures today below freezing and well below average for the Big Apple.

John, back to you.

BERMAN: All right. Thanks, Derek.

Secretary of State John Kerry slapped with a $50 fine for failing to shovel the sidewalk in front of his Boston home following this week's blizzard. The secretary was out of town. He was in Saudi Arabia with the president attending the funeral of King Abdullah.

The city of Boston actually says, tell it to the judge. I bet they worked something out. Also, you know, he can afford the $50 fine.

Dozens killed in a new terror attack by ISIS. We are live in Cairo, next.

(COMMERCIAL BREAK)

BERMAN: This morning, tensions seem to be easing on the Lebanon and Israel border. Israel and Hezbollah both stopped firing weapons and the militant group asked for a ceasefire through U.N. intermediaries. The move comes after Hezbollah claimed responsibility for killing two Israeli soldiers in a missile attack. Hezbollah says they launched the strike in retaliation for a deadly airstrike in Syria last week. Deadly violence in Egypt's Northern Sinai where an ISIS affiliated

jihadist group hit several police and military positions in the city of Al-Arish. That happened overnight. The series of simultaneous assaults with car bombs and mortar rounds killed 26 people, wounded dozens more, including civilians.

CNN's Ian Lee is following all these events. He joins us now live from Cairo.

Good morning, Ian.

IAN LEE, CNN CORRESPONDENT: Good morning, John.

This was a very coordinated attack across Northern Sinai, hitting three cities targeting government installations, including a security headquarters, army base and army check points. Militants were told used car bombs, rockets, mortars. There's also a firefight with them afterwards.

Now, the group claiming responsibility is Ansar Bait al-Maqdis. They recently pledged allegiance to ISIS. Their deadliest attack was last October when they killed 31 members of the security service. We have seen them release propaganda videos of these attacks, trying to encourage recruits, encourage new members in these videos.

They show attacks. They also show execution of soldiers that are captured and also captured weapons. And before this attack, they also released pictures showing their militants ready to fight holding heavy guns as well as rocket propelled grenades.

Now, the soldiers have been trying to fight them in Sinai. It has been difficult because they used hit-and-run tactics. Hundreds of police officers and soldiers have died in this fight, John.

BERMAN: All right. Ian Lee for us in Cairo following that -- thanks so much, Ian. Appreciate it.

Happening now, waiting to find the fate of two hostages held by ISIS. The deadline for a prisoner swap has now passed. So, what's going on now? We have live team coverage, next.

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