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Early Start with John Berman and Zoraida Sambolin

Jordan Still Working On Hostage Deal; Concern Over Released Guantanamo Prisoner; U.S. Responds To Castro Demands; Aaron Hernandez Murder Trial; Deadly Attack In Egypt By ISIS Affiliate

Aired January 30, 2015 - 05:30   ET

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

(COMMERCIAL BREAK)

JOHN BERMAN, CNN ANCHOR: The ISIS hostage deadline has passed. They had offered a prisoner swap for an imprisoned terrorist, but negotiations -- they fell apart when ISIS failed to prove that their hostages are still alive. We're going to have to break down what we had learned overnight and what comes next.

Has a Guantanamo Bay prisoner released by the United States in exchange for Bowe Bergdahl, has he been trying to return to the Taliban? We'll tell you who he's trying to contact, ahead.

The trial begins for a former football star accused of murder. High drama in the case of Aaron Hernandez.

Welcome back to EARLY START, everyone. I'm John Berman. About 29 minutes past the hour.

Great mysteries this morning surrounding the fate of two hostages held by ISIS. ISIS had threatened to kill these men if their demands were not met by sunset. That time has passed. In a series of audio messages reportedly posted by ISIS, Japanese journalist Kenji Goto passed along a demand for a prisoner swap. That swap is supposed to be a convicted terrorist on death row in Jordan, in exchange for sparing the life of Jordanian fighter pilot Muath al-Kasasbeh. ISIS said that if the terrorist Sajida al-Rishawi was not handed over, it would kill both the Jordanian and the Japanese hostages. The deadline has now passed, but we have no word on the fate of anyone involved.

Jordan still says it is willing to make a deal, but it wants proof of life. It wants to know that its pilot is still alive. Japan's government is under intense public pressure to secure journalist, Kenji Goto's release, but Japan is depending on Jordan to make this deal.

Tracking the events for us in Tokyo is CNN's Will Ripley. Good morning, Will.

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: John, ISIS has been eerily silent since that deadline passed. We are getting close to the 24-hours mark and that's now necessarily a bad sign, but also not a good sign. Because in the past, after these deadlines, ISIS comes out with

either a new video, either a new ultimatum or as has was the case earlier in this crisis, the news that one of their previous hostages, Haruna Yukawa, had been beheaded.

This is a very uncertain time, a very volatile time Japanese officials have requested that the Jordanian government offer additional security protection for the officials and diplomats, who were on the ground in Jordan right now including that envoy in Amman that is part of these negotiations.

This is a sign of how tense things are getting. They are also warning Japanese citizens in that region to be on high alert right now not because of a specific threat, but just because again of that fear that anything could really happen and this is extremely volatile and extremely unpredictable.

Just like the terror group that continues to hold as far as we know Kenji Goto, the Japanese journalist, and Moaz al-Kassasbeh, the Jordanian pilot, the fate of both of them still very much unclear right now. We are watching to see what will happen -- John.

BERMAN: All right, Will Ripley, for us in Japan. Of course, in Jordan, there is intense interest in this as well and public pressure for the release of its hostage. Demonstrations have been staged outside the royal palace all week.

The family of pilot, Moaz al-Kassasbeh, they were given an audience with Jordan's King Abdullah. CNN's Jomana Karadsheh is in Amman for us. Jomana, what can you tell us?

JOMANA KARADSHEH, CNN CORRESPONDENT: John, very little information at this point. We are hearing from the government a very brief statement this morning from the Jordanian military saying that all state apparatus are working around the clock to try and update the public on this situation and the fate of Moaz al-Kassasbeh is.

As you mentioned, Jordan insisting on its demand saying that offered to release Sajida al-Rishawi, the convicted would-be suicide bomber as ISIS had demanded is off the table for now.

They say they will only do this if they get what they've been asking for and that is proof of life. Since the capture of Moaz al- Kassasbeh back in December, the Jordanian government says that they have been involved in indirect negotiations through various indirect channels with ISIS to try and secure his release.

And they say for some time now they have been asking for that proof of life, something that they have not received, no evidence that he is alive and well. This is not enough for the family of the pilot, John, they are really putting pressure on the government.

These demonstrations you mentioned and also saying that the government has not done enough to try and secure the release of their son. They want to see Sajida al-Rishawi released. They say they believed this will keep their son alive.

Yesterday, a desperate plea from the father of al-Kassasbeh speaking to reporters here in Amman through these reporters, he sent a message to ISIS asking for the release of his son, asking for their mercy and forgiveness, calling him their brother and a fellow Muslim.

Of course, many are concerned, John, that this is -- this sort of appeal would fall on deaf ears. This is an organization that has showed nothing but brutality and savagery so far. This country remains on edge waiting to hear the fate of a man that many in this country considered to be a national hero.

BERMAN: All right, Jomana Karadsheh for us in Amman following the developments from there. Let us know if you hear anything over the next several minutes. Appreciate it.

New developments to tell you about that add to the controversy surrounding the deal, the exchange to free Army Sergeant Bowe Bergdahl. U.S. intelligence officials say they have evidence that one of the Taliban detainees released from Guantanamo in exchange for Bergdahl may be trying to return to militant activity.

Pentagon correspondent, Barbara Starr, has the latest developments -- Barbara.

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 the 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 that they have. A couple of months ago, apparently something popped up that is now causing concern that one of the men may have been reaching out to militants.

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 all of 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.

BERMAN: All right, Barbara Starr following that. Thanks so much.

In Afghanistan, this morning, the Taliban 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 this could be an insider attack, but the circumstances are still being investigated. A Taliban statement says that the shooter died in the attack.

The turmoil in Yemen is having a big impact on the U.S. fight against al Qaeda in the Arabian Peninsula. Reuters reports that new gaps emerging in intelligence since the Iranian-backed rebels seized control of the government including defense installations, which had provided information to the United States.

The big concern now is the intelligence they used to get, they are no longer getting. That could decrease the accuracy of the U.S. drone strikes and perhaps killing the wrong people and increasing the anti-American sentiment in that region.

The White House this morning is responding to some big demands made by Cuban President Raul Castro. Demands made 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 some cold water on these demands. Though, it does admit that bold outreach they made in December will take time to complete.

(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: I think, Jim, what this highlights is that 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 Guantanamo Bay naval base to Cuba, Press Secretary Josh Earnest simply said no.

The president will officially present his new federal budget proposal to Congress on Monday. We do already know some details. 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.

The White House says anything less would impact military preparedness and they say it would hurt important domestic programs. The president's budget will also call for new capital gains taxes and some new bank taxes.

As for your money doing this morning, let's bring Alison Kosik for an early look. Good morning, Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It's been quite the roller coaster and the ride is not over yet. We are looking at stock futures right now. They are pointing lower. Energy companies continue taking it on the chin. The Dow did post triple digit gains yesterday. The Dow climbed 225 points or a little over 1 percent.

That is after two big days of losses. So what changed yesterday? Some companies posted strong earnings. We are seeing more of that this morning. Visa is a good example. We are seeing shares of Visa in the pre-market moving higher after the company reported positive earnings.

More than $1 trillion worth of transactions were made on Visa cards last quarter. The company is making a fortune on fees. Visa also announced a stock split to bring the price from $250 a share to a more affordable $60.

Also climbing shares of Amazon, Amazon is actually posting a profit last quarter, thanks to strong holiday sales. Making money is actually relatively rare for Amazon. Amazon has been around for almost two decades. Not really making a profit all the time, but still a darling on Wall Street.

BERMAN: Yes. People criticize it for not making a profit. It never really have, still Wall Street loves them, big growing business.

KOSIK: Yes, shares over $300 a piece.

BERMAN: Alison, thanks so much. Appreciate it.

A deadly blast at a maternity hospital, three dead and dozens injured including babies. It was a sudden explosion. What caused it? Could there still be survivors trapped in the rubble? New developments after the break.

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BERMAN: An awful scene in Mexico City this morning after a gas explosion nearly leveled a maternity hospital injuring dozens and killing three people. Frantic family members stood outside, waiting for word on their loved ones.

The apparent cause of this blast, a broken hose on a gas supply truck. CNN's Rosa Flores is in Mexico City at the scene of this disaster.

ROSA FLORES, CNN CORRESPONDENT: John, at least three people are dead. One of those is a child. More than 60 others are injured, hear this, at least 20 of them are children. I want to set the scene for you. You can see police here protecting the perimeter.

In the background, the hospital which looks more like a pile of rubble. You also see frontloaders that have been working around the clock. Here is what we know from authorities, a gas delivery truck came in through the driveway into this hospital to refill a butane tank.

Turns out, a hose busted, triggering the explosion and collapsing 70 percent of the building. Of course, now we know about the injuries and the casualties. Now three operators were operating the truck. We know that all three are injured.

All three have been arrested. As for the company that they work for, the company has released a statement saying that they are cooperating with authorities -- John.

BERMAN: All right, Rosa Flores in Mexico City, an awful scene down there.

Big drama 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 back in 2013.

In opening statements, defense lawyers said that Hernandez had everything in life. His lawyers say he had no reason to kill. For their part, prosecutors told jurors that DNA from shell casings and also security camera footage that that both connects him to the crime.

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PATRICK BOMBERG, BRISTOL COUNTY ASSISTANT DISTRICT ATTORNEY: The evidence will show on June 15th, the defendant was unhappy with the victim. He had given Odin Lloyd information about himself. The defendant called his friends and set up a meeting with Odin Lloyd.

He took steps to conceal his role by using the phones of others. He drove more than two hours for the purpose to get the victim in the secluded area and orchestrated and participated in the killing.

MICHAEL FEE, DEFENSE ATTORNEY: Why would he kill his friend, Odin Lloyd? He 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 facing murder charges in a separate case for allegedly killing two men in a Boston nightclub in 2012. Evidence from that case will not be admissible here.

Breaking overnight, police in Los Angeles are investigating a fatal hit-and-run accident allegedly involving rap mogul, Suge Knight. This morning, Knight appeared with his lawyer at the police station in West Hollywood.

L.A. County Sheriff's spokesman says detectives are currently interviewing Knight. Not clear right now if Knight was driving the car when it struck two men in Compton on Thursday, killing one of them. Knight founded death row records. He was behind the wheel back in 1996 when Tupac was gunned down in his car in Las Vegas.

Let's take a look at what is coming up on "NEW DAY." The effervescent Chris Cuomo joins us now. Good morning, Chris.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": I don't know what it means, but I'll take it as a positive, John. Happy Friday to you. We will be looking at the Hernandez trial. Not as simple as it seems on the outside. I know there's been a lot of media coverage of this.

But remember, when you get to court, you only know what you can show. We will look at the opening statements. We will look at the theory of the case from the prosecution and why it may be a tougher circumstantial murder case for them to make than many believe heading into this. We'll do that.

But then the big international story that has dominating the headlines and deserves more treatment, as to what is going on with these terrorists, who are threatening to kill a Japanese hostage? Maybe a Jordanian hostage, do we even know if they are alive?

It does seem that the world is getting the run around and the media is fanning the flames. We will take a closer look at the situation and what are the strategies to deal with it, John. Tough questions especially when your own blood is involved, but it does at this point, it's a little bit of a game, doesn't it?

BERMAN: Two countries involved in this. More watching because it will impact relations with terrorist all over the world. Chris Cuomo for us this morning, looking forward to "NEW DAY" coming up in just a few minutes.

It's 47 minutes after the hour right now. Dozens dead and new terror attack by ISIS, this time it is Egypt. We are live next.

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BERMAN: Deadly violence in Egypt's northern Sinai where an ISIS- affiliated Jihadist group hits several police and military positions in the city of Al-Arish Thursday night. The series of near simultaneous assaults with car bombs and mortar rounds killed at least 26 people and wounded dozens more including civilians.

CNN's Ian Lee is following developments for us from Cairo. Good morning, Ian.

IAN LEE, CNN CORRESPONDENT: Good morning, John. We are hearing the Egyptian President Asisi is returning to Cairo following this attack. This is the deadliest one since last October where 31 Egyptian security officials were killed.

The group claiming responsibility is the group that last November pledged allegiance to ISIS. The government here bans journalists from going to Northern Sinai. I went there last August. I talked to some of these soldiers at these checkpoints and they were very much afraid that they were sitting ducks waiting for the next big attack to happen.

We see attacks almost on a daily basis against security personnel although these attacks almost exclusively target just them. Civilians have been caught in the crossfire before -- John.

BERMAN: All right, Ian Lee covering that for us from Cairo. Thanks so much, Ian.

It's 52 minutes after the hour right now. Airbnb users hit with new taxes in some cities. Who will be paying now? We have an early start on your money next.

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BERMAN: Let's get an early start on your money right now. Alison Kosik is here with that. Good morning.

KOSIK: What a wild week it's been for stocks. The ride is not over yet. We are seeing stock futures here in the U.S. They have just taken a pretty big turn to the down side. So it looks like we are going to see a dip at the open.

Yesterday, the Dow snapped a two-day losing streak. It gained 225 points or a little over 1 percent. One stock is climbing before the bell is Amazon. Amazon is posting a profit last quarter thanks to strong holiday sales. Making money is actually relatively rare for Amazon because a lot of its money winds up going toward investing and other opportunities.

Airbnb trying to make nice with the government. According to the "Washington Post," the controversial home rental service will begin collecting to hotel or occupancy taxes in Washington, D.C. The taxes are going to range between 5 percent and 15 percent.

This could mean millions of dollars in additional revenue for the city. Eventually Airbnb has to start playing by the rules. It cannot skirt the laws forever. This is the way to do that and become more legit. Airbnb charges taxes in Portland and San Francisco. Want a burger to go with that stock?

BERMAN: Yes.

KOSIK: Shares of Shake Shack begin trading on the New York Stock Exchange today. Last night, its IPO pricing at $21 a share and that means the company is going to raise $105 million giving it evaluation of close to $800 million.

That is small compared to McDonald's which is valued at $86 billion. Shake Shack has something crucial McDonald's doesn't have. Millennials love it. The burgers are double the price. Outside the New York Stock Exchange on the IPO day, they are rolling out the food cart giving away the food for free.

BERMAN: The burgers are good. The burgers are very, very good. I don't know about the stock. I know about burgers. Thanks, Alison. I appreciate it.

All right, the deadline has passed to save two hostages held by ISIS. What will happen over the next several hours remains a mystery. "NEW DAY" starts now.

(BEGIN VIDEOTAPE)

BERMAN: The deadline has passed to save two hostages held by ISIS.

UNIDENTIFIED MALE: We have asked for a proof of life.

UNIDENTIFIED FEMALE: I am very pessimistic about the fate of the hostages.

UNIDENTIFIED MALE: They are attempting to elevate themselves into a political movement.

ANDERSON COOPER, HOST, CNN'S "AC360": One of these five Taliban Guantanamo detainees who were traded for the release of American Bowe Bergdahl has attempted to return to militant activity.

STARR: He was attempting to communicate with Taliban members.

UNIDENTIFIED MALE: We are confident that we would be able to mitigate any threat of reengagement by any of these members.

UNIDENTIFIED MALE: We will see, Ladies and Gentlemen, the defendant Aaron Hernandez, did not murder his friend.

UNIDENTIFIED MALE: Celebrity, rich, successful, why did he kill him?

UNIDENTIFIED MALE: There is no smoking gun.

(END VIDEOTAPE)

CUOMO: Good morning, welcome to your NEW DAY, not just any day, it's Friday. It is January 30th, almost 6:00 in the east. This morning here are the facts. Several deadlines have turned out to be fake. Hundreds of millions requested and forgotten and it is still completely unclear what the terrorists called ISIS are up to and lives are on the line.

ALISYN CAMEROTA, CNN ANCHOR: The Jordanian government says they need proof that their captured pilot is still alive. But at this hour, ISIS is silent. All of this amid more criticism over negotiating with terrorists. Let's bring in CNN's Will Ripley live in Tokyo. What's the latest, Will?

RIPLEY: Right now the feeling here is that it only is a matter of time before ISIS comes out with another propaganda message. But what sun known right now is what will be the contents of that message.