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Early Start with John Berman and Zoraida Sambolin

Losing the Battle Against ISIS Propaganda; What Radicalized "Jihadi John?"; DHS Funding Countdown; New Rules to Keep Internet Open; FBI Following The Money Trail; Walker Gaining Momentum

Aired February 27, 2015 - 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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CHRISTINE ROMANS, CNN ANCHOR: Is the U.S. losing the war on ISIS? A grim conclusion from the FBI's top counterterrorism official, how he says the terrorists have pulled ahead. This as we learn new information about the ISIS executioner. Why he may have radicalized and did police miss their chance to stop him.

Welcome back to EARLY START. I'm Christine Romans. It is 30 minutes past the hour. It is Friday morning. John Berman has the morning off.

A dire prognosis in the battle against ISIS this morning, the FBI's top counterterrorism official testifying to lawmakers that America is in his words losing the battle to stop Islamic militants from spreading their violent message online.

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MICHAEL STEINBACH, FBI ASSISTANT DIRECTOR, COUNTERTERRORISM DIVISION: The foreign terrorist now has direct access into the United States like never before. They know they can't travel so what they are doing is they are putting out a very effective propaganda message through social media, through lots of platforms, saying if you can't come to Syria, do something in the U.S. or western countries.

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ROMANS: U.S. Director of National Intelligence James Clapper was also on Capitol Hill Thursday painting an equally grim picture. CNN's Pamela Brown has more on that.

PAMELA BROWN, CNN JUSTICE CORRESPONDENT: Good Morning, Christine. With Jihadi John, ISIS' high profile recruit now unmasked. This morning, U.S. law enforcement officials say they are focused on the terror group's influence to attract new followers here in the U.S.

Law enforcement sources I've been speaking with say, we are going to keep seeing more ISIS related cases until the ISIS propaganda machine is shutdown, the machine that is fueling rapid recruitment in the U.S.

That was a main topic of discussion among top law enforcement and officials on the Hill Thursday. In fact, U.S. Intelligence Chief James Clapper said in testimony on the Hill that you cannot shutdown the internet.

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JAMES R. CLAPPER, DIRECTOR OF NATIONAL INTELLIGENCE: The global attention and widespread support in extremist circles for these attacks probably will inspire additional extremists to conduct similar attacks.

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BROWN: He also said that 180 Americans have now tried to join the fight in Syria and that some have already returned to U.S. soil. In regards to the global threat, he said the final accounting is done, 2014 will have been the most lethal year for terrorism in the 45 years such data has been compiled, a very dire picture there --Christine.

ROMANS: All right, Pamela, thank you for that. We are learning much more this morning about the British accented voice of ISIS. The world has come to know as Jihadi John.

Beyond his real name now confirmed by officials to be Mohammed Emwazi, a birth place in Kuwait and a privileged upbringing in London, prospects for a bright middle class future if things had turned out differently.

But many questions remain. At the top of the list, what radicalized Emwazi? CNN's Isa Soares is standing by live in London. Isa, what do we know about his possible motivation for joining ISIS?

ISA SOARES, CNN CORRESPONDENT: Good morning, Christine. We are getting two thoughts here, two ideas behind the radicalization perhaps of why he made his way into Syria.

One of those people talking is the Muslim-led, human rights group, Cage. They are the one that been in contact with Mohammed Emwazi known as Jihadi John. He got in contact with them in 2009.

Because he said he told them he felt harassed by authorities. He tried to get in Tanzania, supposedly as a graduation gift from his parents to go on safari. As he went in, he was stopped by authorities and sent back and he was questioned.

He was questioned why he was going on this trip. He was also questioned about what he thought about 9/11 and about 7/7. He said he felt harassed. He felt trapped. He felt like a prisoner. That is why he got in contact with them.

That is one point of view, one piece of the puzzle as to why perhaps he may have radicalized. Cage believes that this is the reason behind the radicalization, but of course, that is one point.

Questioned by authority makes you then go into Syria and be part of ISIS and behead people. Authorities obviously is being quoted as saying in papers that he had intentions prior to this and prior to the 2009 that he knew several people and links to Somalia. The intention of going to Tanzania wasn't part of a terror group or part to go on safari, but to build bridges to go into Somalia with Al- Shabaab. In fact, court papers, Christine, that we have been seeing, that the media has been reporting on today showed that he in fact had contact with other terror cells.

The group calling the London Boys that include one that was killed in a missile strike in Mogadishu as well as two other men who tried to attack here on the public transport here in London. You are starting to get the picture of the networking behind it.

But two very much ideas as to where and at what point he was radicalized. Not known. The family here is not talking. No one in fact is opening any doors. Cage tells us he was a simple, humble, and very normal family. People here very much shocked at the idea that one of their neighbors could in fact be "Jihadi John."

ROMANS: Wow. Isa Soares, so much still to learn too. Thank you so much for that. Isa for us in London.

It's 35 minutes past the hour. Attorney General Eric Holder sits down with CNN to discuss "Jihadi John," the war on ISIS online radicalization. He will be on "NEW DAY" this morning at 7 a.m. Eastern Time.

With only hours left before the Department of Homeland Security runs out of funding, the U.S. Senate is set to vote beginning this morning on a funding bill that meet a key Democratic demand. Namely it's a bill that does not also block President Obama's executive actions on immigration.

Senate Majority Leader Mitch McConnell has promised a separate vote on immigration. On the House side, the ticking clock had tempers flaring.

The number two Democrat, Steny Hoyer, calling House Majority Leader Kevin McCarthy a coward for cutting off his microphone mid debate. Hoyer later apologized.

With the latest on the funding countdown, let's bring in White House correspondent, Michelle Kosinski -- Michelle.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, Christine. Well, here we are hours away from the Department of Homeland Security running out of funding, which would mean that essential employees would have to go to work but not be paid despite their mortgages and bills to pay.

Tens of thousands of other employees would be furloughed. This is all over, of course, a political battle. At this point, the Senate looks like it is poised to vote on a clean bill.

It would fund the Department of Homeland Security, but not tie it to simultaneously defunding the executive action on immigration. The House though, there is a lot of Republican opposition to this.

The House Speaker John Boehner had this unusual reaction to the continued barrage of questions on this subject.

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REP. JOHN BOEHNER (R-OH), HOUSE SPEAKER: When they make decisions, I'll let you know.

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KOSINSKI: It is unclear if the House will take up a vote on this clean bill. The White House is putting the responsibility squarely on John Boehner's shoulders saying that this is not even a partisan dispute anymore. This is a party dispute accusing Republican leadership of falling down on the job.

And saying, really, the hard work has already been done on deciding the level of funding. The White House urging Republicans to, as they put it, take the responsible course now -- Christine.

ROMANS: Michelle Kosinski at the White House, thank you for that, Michelle. The IRS targeting scandal could turn into a criminal matter. The watchdog overseeing the IRS confirms the disappearance of the former official, Lois Lerner, e-mails may involve criminal activity.

The Congress requested those e-mails from Lerner to determine whether agents targeted Tea Party groups applying for non-profit status. The e-mails were thought to be lost in an e-mail crash. Some of those e- mails were recovered.

Loretta Lynch is now a step closer to becoming America's next attorney general replacing Eric Holder. The Senate Judiciary Committee voting 12-8 Thursday to send her nomination to the full Senate for confirmation. If Lynch is confirmed, she will become the first African-American woman to serve in that position.

Regulators have voted for equal internet, now prepare for a fight, these new rules known as net neutrality will give equal opportunity for internet access and speeds on all web sites.

That means network owners like Comcast and Time Warner Cable can't slow delivery of certain sites and charge providers for faster access. It's a huge win for Facebook, Twitter, AOL, the list goes on. Netflix called the decision a win for consumers.

But internet service providers like AT&T and Comcast, they don't want additional rules. And they've warned a legal fight to challenge this is coming.

What does this mean for you as you watch "House Of Cards?" Well, the rules will not be official until this summer. If upheld, there are rules against content discrimination.

It means the government is regulating the internet like other public utilities. Like water and electricity and internet. The provider cannot purposely slow down your Netflix streaming. Happening now, the search for several missing Canadian teenagers who may have been lured to Syria by ISIS online, what we are learning next this morning.

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ROMANS: We're getting new details this morning about the three Brooklyn men arrested for plotting to aid ISIS. Those who knew the two younger man telling the "New York Times" they had become increasingly isolated and enamored with ISIS brutal violence.

We are also learning what the FBI is alleging about exactly how the older suspect paid for and organized this effort to send the youngest suspect to Syria to join ISIS. CNN's Deborah Feyerick is tracking that part of the story.

DEBORAH FEYERICK, CNN NATIONAL CORRESPONDENT: Christine, we are learning more about the 30-year-old alleged money man, Abora Habibo. He had multiple conversations with the 19-year-old suspect, the one who was picked up as he tried to board a plane to Turkey.

According to the FBI, the money man provided about $1,300 for the young man and took him to the travel agency where he helped him pay for his ticket to get to Syria to join ISIS.

The money man promising him that he would pay his expenses certainly enough to help him a weapon and then send cash if he needed it once he got to Syria.

Now according to the FBI, the money man did reach out to other individuals asking them to chip in, to help defray the cost of this venture saying that they should help to provide for the brothers, a code word for Jihadis or want-to-be Jihadis.

Now it is unclear when this money man arrived in the United States. He was here long enough to open up a string of kiosks up and down the east coast of malls in Virginia Beach, Savannah as well as Philadelphia.

He did overstay his visa. About two years ago, he signed up as a part-time student at a technical college here in New York. Unclear whether that was an attempt to stay in the United States legally once his visa had expired.

Right now, the FBI is looking and following the money trail and tracking down those other individuals -- Christine.

ROMANS: All right, Deb Feyerick for us in Brooklyn this morning. Thank you, Deb.

The recruiting arm of ISIS reaching deep into Canada now, police confirming at least six young people from Quebec including two women, left that country to join ISIS in January alone. At least three of them attended Mason Noff College in Montreal. Students there stunned by the news.

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UNIDENTIFIED FEMALE: It makes us think what were they thinking?

UNIDENTIFIED MALE: I cannot believe that some students could have their mind blown by that and leave the country to go there.

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ROMANS: A teacher at Mason Noff College who taught in Arabic and the Koran studies course has been linked to one of the students who left to join ISIS. The school has now canceled its contract with that teacher.

It's 45 minutes past the hour. Let's look at what is coming up on "NEW DAY." My friend, Alisyn Camerota joins us now. Good morning.

ALISYN CAMEROTA, CNN ANCHOR, "NEW DAY": Hi, Christine. Great to see you so we will have more details on those six Canadian teenagers you were talking about to reportedly heading to join ISIS. How were they and the three British girls and the three Brooklyn men all recruited by ISIS online?

And can internet companies like Facebook and Twitter shutdown accounts linked to terror? We will talk to a security expert to get that answer.

With terror dominating the headlines, what is the latest with the possible partial shutdown of the Department of Homeland Security? We are hours away from the deadline. Is a solution in sight?

Also, tracing the path of Jesus, did he leave behind historical evidence? We will look at some examples, all of that when Chris and I see you at the top of the hour.

ROMANS: All right, I'll see you in a few minutes. Thank you.

Who will be the Republican nominee for president in 2016? Chris Christie on the record about why he says he could beat Jeb Bush.

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ROMANS: Federal prosecutors today resume their questioning of alleged al Qaeda operative, Abid Naseer, at his New York trial. He is accused of plotting attacks in England and the U.S. including a foiled attempt to attack the New York City subway system.

Documents seized during the Bin Laden raid and unveiled at that trial outlined plans for attacks on American heartland. Naseer telling jurors Thursday, he had no involvement in those activities.

After settling on a pool of 70 perspective jurors, attorneys for accused Boston Marathon Bomber Dzhokhar Tsarnaev are making a last- ditch attempt to have the trial postponed.

The defense team claiming there are not enough African-Americans in the jury pool. Opening statements in the death penalty trial are scheduled for Wednesday. He is charged in the marathon bombing that killed three people and injured hundreds more.

At the Aaron Hernandez trial, the younger sister of murder victim, Odin Lloyd, is expected to testify today. In court on Thursday, prosecutors showed surveillance video of the former NFL star and a friend at a gas station before Lloyd was killed. They claim this links Hernandez to the crime.

Scott Walker emerging as a potential frontrunner among the Republican candidates for president, the Wisconsin governor getting the star treatment at the annual CPAC Conference, but he did stir up controversy when he compared Democratic protesters in his state to radical Islamic terrorists. Here he is attempting to explain and walk the comments back.

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GOV. SCOTT WALKER (R), WISCONSIN, 2016 PRESIDENTIAL CANDIDATE: There is no comparison between the two. Let me be clear, I'm pointing out the closest thing I have to handling a difficult situation was the 100,000 protesters.

There is no analogy other than the difficult situation and if you were in the position to do it nationally. Again, you will misconstrue things the way you see fit. It is clear that is the closest thing I have in terms of handling a difficult situation. Not there is any parallel.

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ROMANS: So here is exactly what he said. The controversy started when Walker was asked how he would handle ISIS. He responded, quote, "if I can take on 100,000 protesters, I can do the same across the globe."

Chris Christie getting a lot of face time at CPAC, the New Jersey governor brushing off claims that he is too much of a hot head to contend for the nomination, he said in his state, sometime people need to be told to sit down and shut up. Here is what he said about his likely rival, Jeb Bush.

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GOV. CHRIS CHRISTIE (R), NEW JERSEY: Well, listen, if what happens is if the elites in Washington, who make back room deals decide who the president will be then he is definitely the front runner.

If the people of the United States decides to pick the next president of the United States and they want someone who looks them in the eye and connects with them and is one of them, I'll do OK if I run.

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ROMANS: Christie says he considers himself passionate and not petulant. Why would he make a good president? As the son of an Italian mother and Irish father, he learned about dispute resolution early on. Bobby Jindal using his time at CPAC to take aim at President Obama, the Louisiana governor insisting Republicans must repeal every aspect of Obamacare. He also called for the deconstruction of common core education standards.

A program he once supported. Jindal hammered the GOP leadership for waving the white flag on Obamacare and executive orders for immigration.

What color is this dress? Believe it or not, there is a raging debate, 10 million people care. How many clicks does it take to break an internet record? We have that next.

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ROMANS: Time for an EARLY START on your money this Friday morning. U.S. stock futures barely moving. Yesterday stocks mostly declined. Energy stocks led the dip.

Oil fell more than 4 percent back below $50 a barrel. This morning, it is bouncing back a bit. One bright spot, the Nasdaq just 12 points below 5,000, a level not seen since the dot-com bubble back in 2000.

Apple is back with its secret of announcements. The company is holding a special event on March 9th. It is expected to discuss the apple watch and what it does and when it will be available. Apple has mentioned this watch before, but skipped on important details. Battery life for example rumored to be less than a day. It is not cheap, $350.

Is this dress black and blue or white and gold? People went crazy over the answer. The online debate exploded last night. The buzz feed post about the dress' color broke traffic records drawing more people to the site at one time than ever before. More than 10 million people pondering the color of the dress, #thedress is the number one trending topic.

Is the U.S. losing the war on ISIS? "NEW DAY" starts now.