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Early Start with John Berman and Zoraida Sambolin

Netanyahu Declares Victory; Air Force Accused of Trying to Join ISIS; Republicans Unveil 2016 Budget; Dolce & Gabbana Clarify IVF Stance. Aired 4:30-5a ET

Aired March 18, 2015 - 04:30   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: Happening now, a decisive victory for Israeli Prime Minister Benjamin Netanyahu. The campaign seemed so close. But at the end, he opens up a significant edge. We are live now with what comes next.

[04:30:00] CHRISTINE ROMANS, CNN ANCHOR: A U.S. veteran arrested, accused of trying to join ISIS in Syria, due in court in just hours. The new details in the case against him, ahead.

Welcome back to EARLY START. I'm Christine Romans

BERMAN: I'm John Berman. Great to see you. Thirty minutes past the hour.

And breaking overnight, it really was a resounding re-election victory for Israel's prime minister, with 99 percent of the votes on the precincts now counted, Benjamin Netanyahu has a five-seat edge over his main opponent, Zionist Union leader Isaac Herzog in Israel's parliament. Now, Herzog has phoned Netanyahu to offer his congratulations.

Last night, the prime minister gave a victory speech, exalting in a comeback. It really was a comeback, because just days ago, opinion polls put him behind the Zionist Union. Many say the prime minister faces a serious challenge, though, now, reuniting that nation after what was a very harsh campaign, up until its very final hours.

Let's turned now to CNN's Oren Liebermann, standing by in Jerusalem with the latest.

A surprising margin for the prime minister, Oren.

OREN LIEBERMANN, CNN REPORTER: Absolutely. A margin we never expected, John. And you said it, right up until the final minutes here, it looked like it was either neck and neck, or that Isaac Herzog of the Zionist Union Party, Netanyahu's main rival had opened up or at least started to open a gap.

And even with the exit polls it looked to be a very close race. And then we see actual results, unofficial results, but actual results from the ballot boxes instead of exit polls. And Netanyahu, a resounding victory, he declared victory last night.

That was based on the exit polls and now, he knows he can celebrate that victory today, especially with Isaac Herzog calling to congratulate him as the next prime minister.

As you mentioned, though, Netanyahu remains a very polarizing figure here. There are a lot of people who love him. There are a lot of people who don't. That hasn't changed. But what has become easier, especially with Netanyahu's margin of victory is his ability to put together a government.

Even after the exit polls, it seemed like the right-wing and Netanyahu would have an easier path to putting together a coalition government, now with that resounding victory, with a gap he opened, a five-seat margin in the Knesset. It is much easier for him to put together that government, it is so much easier path to string together a coalition.

That, of course, will now be his task. He's a master politician, master deal maker and he'll use those skills to string together what could be a strong coalition. Netanyahu expected it to be an easy race when he called these elections three months ago. Now, that we have the results, and we're seeing these unofficial results and these counts from the ballot boxes, John, it looks like it was, or at least will be for Benjamin Netanyahu, an easy task, or at least a much easier than we expected to put together a government.

BERMAN: Yes, the process may not have been what he expected, but the result, certainly what he wanted.

Oren Liebermann, thanks so much.

ROMANS: Happening now, Secretary of State John Kerry remains in Switzerland for a third day of talks with the Iranian Foreign Minister Javad Zarif. Iran's negotiators are already claiming major progress, telling state news media that 90 percent of issues have already been worked out with the Americans. American diplomats meanwhile say they are, quote, "still some tough, tough issues to address."

Meanwhile Senate Republicans not backing down on their controversial letter to Iranian leaders. "No regrets at all" is how the letter's co-author, author rather, Tom Cotton, put it.

Let's bring in senior international correspondent Nic Robertson, who's at those negotiations in Lausannae.

Good morning, Nic.

And, you know, a 10 percent gap in the negotiation is still a pretty big divide here considering the issues on the table.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It really is, Christine. And this is what we've been told all along. You can cover a lot of ground in talks and you can nail down the easy stuff. It's the tough stuck that gets stuck at the end. That last 10 percent, and that's where we're now. It's not just the technical issues, although that little bit of progress being made on discussing the options of how to get around the technical issues, but also political issues, substantial things.

You know, Secretary Kerry has said, you know, over this past weekend and this week, that really Iran needs to take these tough political decisions about, you know, for them, it's a case of, you know, sanctions and when they're lifted and how they're lifted. So, that's a hurdle for the Iranians to cross.

The other hurdle is, you know, an accountability of their past military use of enriched uranium, which is something they haven't done. Again, this is a political decision and calculation on the Iranian part, but part of what is expected to make this whole deal work.

So, we're told, you know, that last 10 percent is overly complicated. Things get on the table, seem to be agreed, they get moved off the table, and then later, you know, something else has changed. It's like a Rubik's cube is how it's being described to us.

You know, three meetings yesterday, the day before, a five-hour meeting. What is different today? Well, the pair haven't met so far today, 9:30 in the morning here now. Over the past couple of days, they've begun their meetings by 8:00 a.m.

So, whatever schedule and we're told the deadline's approaching and the pressure's on, the schedule perhaps today slipping a little bit, waiting for updates of when they actually get together, Christine.

[04:35:02] ROMANS: All right. Nic Robertson, thanks for that, Nic.

BERMAN: Happening this morning, a U.S. Air Force veteran goes before a judge. He's accused of attempting to join ISIS in Syria. Tairod Nathan Webster Pugh was caught and turned back by Turkish authorities in January after he refused to let them examine his laptop and other devices. U.S. investigators later found a letter on his laptop in which he allegedly declared himself a mujahideen. Officials say Pugh was an experienced aircraft mechanic for the Air Force, and also American Airlines.

ROMANS: The new director of the Secret Service squaring off with outraged lawmakers. Joseph Clancy grilled by a House committee about a series of embarrassing scandals at the agency, including the latest incident involving two agents accused of disrupting a late-night bomb investigation at the White House, after allegedly drinking.

We get more from CNN senior White House correspondent Jim Acosta.

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JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John and Christine, pressed on a string of embarrassing episodes from last fall's fence- jumping incident at the White House, to accusations of agents drinking and driving around Washington, Secret Service Director Joe Clancy called for patience, telling Congress it's going to take some time to change the culture of his agency. That did not sit well with lawmakers who demanded answers about an incident earlier this month, when it's alleged two agents showed up as a suspicious package investigation at the White House after drinking at a party.

Clancy responded that surveillance video from the incident may reveal a less sensational version of events than what was originally reported in the case, but the director admitted he wasn't told about it for five days.

Here's what he had to say.

JOSEPH CLANCY, SECRET SERVICE DIRECTOR: We had a good stern talk about that and then instructed the staff to go out to their management to ensure that these events, any event of misconduct or operational errors, have to be relayed up the chain.

ACOSTA: But Clancy said changes are coming to thwart jumpers, a taller temporarily fence around the White House may go up this summer. And to replace the outdated training facility that we visited eight years, the Secret Service wants to build a new mock White House at a cost of $8 million.

Now, as for that alleged drinking and driving incident earlier this month, Clancy and the White House say they're awaiting the results of an inspector general's investigation. But I'm told key lawmakers may be in the process of viewing that surveillance video of the incident this week -- John and Christine.

(END VIDEOTAPE)

BERMAN: Our thanks to Jim for that.

Republicans formally unveiled their 2016 budget today. It calls for higher military spending, higher baseline defense spending. There's some budget tricks involved there.

There are deep cuts to social services. It eliminates deficits it says within a decade. It also assumes $2 trillion in savings from a full repeal of Obamacare.

Even if it does pass both houses in the Congress, the president would never adopt it. The president's budget proposal, he calls for raising taxes on the wealthy to pay for infrastructure and education upgrades.

ROMANS: Which is a big divide in their world views at this point.

BERMAN: Yes.

ROMANS: Kentucky Senator Rand Paul will reportedly make his presidential candidacy official next month. A campaign source tells "The Associated Press" Paul plans to announce in a speech in Louisville on April 7th. That's a day after the NCAA key championship which the University of Kentucky, by the way, he's from the Kentucky, it's heavily favored to win.

The first stops for Paul in the days after the announcement will be Iowa, yep, New Hampshire, uh-huh, South Carolina -- important states early on.

BERMAN: A little bit.

You can take this next story with a giant block of salt. Donald Trump says he could be serious this time about seeking the 2016 Republican nomination. "The New Hampshire Union Leader" reports that Trump will launch a presidential exploratory committee today. The report says the businessman will not renew his contract with NBC for "The Apprentice". The Trump announcement comes ahead of his visit in New Hampshire Thursday for meetings with the group of veterans and local business leaders.

ROMANS: All right. Time for an EARLY START on your money.

Asian and European markets mostly up this morning. U.S. stock futures are also bouncing back a little bit. Yesterday was a tough day for the Dow, down 128 points.

Oil prices down for six days in a row. The lowest levels for oil prices since 2009. That had investors nervous. Investors also nervous about the Fed and how quickly it plans to start raising interest rates. Today, it could come down to one little word, the word "patient". For months, the Fed has said it would be patient about raising interest rates. Investors think the Central Bank will finally remove that "patient" word, that promise from the statement today, signaling a rate hike could come as June.

A rate hike is coming, everyone. I mean, I wish the markets would stop with this crazy nail-biting. A rate hike is coming. There's no question.

BERMAN: If only everyone hung on our words like they hung on the Fed's words, like every one word.

ROMANS: I know, I know.

BERMAN: Patience.

All right. The FBI raiding the home of accused killer and real estate heir, Robert Durst. New developments in this case, we'll tell you what they are, next.

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[04:43:12] BERMAN: Robert Durst is waking up in a new correctional facility this morning, one equipped to deal with the mentally ill. A detention hearing is now being set for Monday, with the real estate heir facing murder charges in Los Angeles, gun charges in New Orleans, and a revived murder investigation in New York.

CNN's Jean Casarez has the latest on all of this.

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JEAN CASAREZ, CNN CORRESPONDENT: John and Christine, prosecutors here in Los Angeles want Robert Durst to come and be extradited to face his first-degree murder charges, as soon as possible. And the defense wants that too. Prosecutors in Louisiana say not so fast. They have brought state charges against Robert Durst and on Tuesday,

durst was in court again at a hearing to face those charges.

Prosecutors then said, we want a detention hearing, which in essence, is a bail hearing. That's set now for Monday.

Durst at the hearing was seen to be at one point smiling and even laughing to himself. But this is a very serious case out of Louisiana, because it involves two felonies -- a felon in possession of a weapon and a weapon in possession and with a controlled substance. It can be up to 30 years in prison for both felonies. And so, prosecutors want to cross their T's and dot their I's, and under Louisiana law and constitutionally, a defendant is entitled to a bail hearing, that detention hearing.

So that is set for next Monday. And he may not then be extradited to California until next week -- John, Christine.

(END VIDEOTAPE)

ROMANS: All right. Jean, thank you for that.

With the trial of accused Boston marathon bomber, Dzhokhar Tsarnaev, a long-time friend Stephen Silva testifying he loaned Tsarnaev the gun that was later used in the fatal shooting of MIT Police Officer Sean Collier. Silva took the stand wearing a prison jump suit.

[04:45:00] He's currently serving time on drug and weapon. Prosecutors in the Tsarnaev trial could rest their case next week.

BERMAN: He is now on the docket of the judge in the trial of Colorado movie theater massacre suspect James Holmes has set opening statements for April 27th. More than a month ahead of schedule, though, three years since this massacre actually happened. The 27-year-old Holmes is charged with killing 12 people, wounding 58 in the Aurora theater shooting. He's pleaded not guilty by reason of insanity. Officials say jury selection moving along faster than expected. One of the potential jurors in the Aurora case is a survivor of the 1999 Columbine massacre. The judge qualified the jury candidate after the person assured the court that he could be fair.

ROMANS: Former NFL star Aaron Hernandez may have been angry at Odin Lloyd, the man he's accused of murdering. A witness testifying at the Hernandez trial says that the defendant was staring Lloyd down as he talked to a mutual friend at a nightclub, two days before the alleged murder. Jurors are expected to hear more testimony today on the crime scene and the impression from Nike sneakers Hernandez wore.

BERMAN: The four-year drought in California has become so severe that the state's restaurants are now banned from serving water to customers unless they request it. Fines for breaking that new law can reach $500. Scientists are now sounding the alarm, but unprecedented water shortages, increased wildfires, farm foreclosures, and huge economic losses in that region for years to come.

ROMANS: A study out of Brazil suggests that prolonged breast feeding may lead to greater chances of educational and financial success. Researchers followed more than 3,000 babies into adulthood, comparing those breast-fed for a month or less, to those breast-fed 12 months or more. Those fed for longer were found to have higher IQ scores, they completed more education and they earned higher wages. Researchers admit the findings are not conclusive and other factors may have contributed.

BERMAN: Do you have a chapter on this in your new book? You have a new book coming out.

ROMANS: I do, I do. I do not have a chapter. Those aren't millennials yet.

BERMAN: Even though that's not an advice you have from millennials.

ROMANS: No, no, my advice is for 18 to 35-year-olds.

BERMAN: Ah, OK.

Dolce & Gabbana caught in controversy over comments about gay marriage and children raised in nontraditional family. Now, they're explaining what they really meant. This is exclusive to CNN. We're live, next.

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[04:50:59] BERMAN: Italian fashion designers Dolce & Gabbana now trying to extinguish a social media fire storm in a CNN exclusive. They say they respect how all people choose to live their lives, but that others should respect different points of view.

Now, those comments come after Domenico Dolce referred to babies born through in vitro as synthetic children born from rented wombs. This has become a very big deal, all over social media. You hear about it everywhere.

And now, CNN's Anna Coren spoke to the duo exclusively. She joins us now live from Hong Kong.

And I'm -- this has been so surprisingly huge in so many circles. What do they say?

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yes, Dolce & Gabbana certainly shocked at the reaction they have received. They say this entire episode is being blown out of proportion, that they were interviewed by an Italian magazine over a week ago. The topic of the interview was families and they were asked, do either of you want to have children.

Now, Stefano Gabbana, he said that he did. This is something that he's always wanted to do, and he may consider, you know, IVF in the future. But as for Domenico Dolce, who is a little bit older, he's 56 years old, he said, no, I'm a gay man. I cannot have children.

And this really falls into his whole traditional family values, which is quite surprising, considering he's a gay man in the fashion industry. But it's just something that he personally would not do. And that was a point that he wanted to clarify today.

Take a listen to some of our interview a bit earlier.

(BEGIN VIDEO CLIP)

STEFANO GABBANA, DOLCE AND GABBANA: We love gay couple. We love a gay adoption. We love everything. Just expressed -- Domenico expressed --

DOMENICO DOLCE, DOLCE AND GABBANA: My point of view, my private point of view.

I'm -- I talk with you. I'm Sicilian, I grew up in the family, we I have sense of family, very strong for myself. My company and family company, and I believe in the tradition of family. This, my school, my ground, my culture. It's impossible to change today my culture for something different. It's me.

(END VIDEO CLIP)

COREN: And what triggered that firestorm were those phrases like synthetic children and rented uteruses. And this was something that Domenico said he should not have said. He misspoke, he used the wrong language and that he apologized for offending anyone.

I asked him about Elton John's reaction and the celebrities that have rallied behind him and both of them said, you know, we love Elton John, we love his music. We're not going to boycott his music. They want peace with the singer and they do apologize for offending anybody, John.

BERMAN: Anna Coren, fascinating interview, looking forward to hearing more of it as the day progresses. Thanks so much.

ROMANS: All right. Coming up, another health insurance company hacked. We're going to get an early start on your money, next.

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[04:57:29] ROMANS: Let's get an EARLY START on your money this morning.

U.S. stock futures are up. Yesterday, they were down. The Dow fell 128 points, about 1 percent. Oil prices fell for a sixth day in a row.

All eyes today on Janet Yellen and the Federal Reserve. If the Federal Reserve stays it's staying "patient" on raising interest rates, that could spark a rally perhaps. No mention of that word "patient", it could signal a rate increase as early as June bringing more uncertainty into the markets.

Good bye Ma Bell, hang up the phone. Today is the final day AT&T will be included in the 30 stocks that make up the Dow Jones Industrial Average. The world's most valuable company, Apple, will join this exclusive

club of 30 at the close of trading. Apple already the biggest company in the S&P 500. The stock is up 12 percent so far this year.

Hackers stealing a huge amount of information from health insurer Premera Blue Cross. The company is still investigating, but up to 11 million of you, your customer records were compromised. What was taken? Birthdays, e-mails, Social Security numbers, insurance claims.

Second major hack of a health insurance company. Earlier this year, hackers stole similar information on 80 million from Anthem. Just goes to show you there's a lot of places your information resides and hackers can get it with frightening ease.

BERMAN: If people want to ask you questions online.

ROMANS: #AskChristine.

BERMAN: #AskChristine.

ROMANS: About money. If you want to ask me about money, #AskChristine. If I answer your question on CNN Money, you'll get a free copy of my new book.

BERMAN: Fantastic.

EARLY START continues right now.

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BERMAN: Happening now: Israeli prime minister Benjamin Netanyahu claiming a huge victory in an election that many predicted would be tough for him to win. We're live with what comes next.

ROMANS: In just hours, a U.S. Air Force Veteran due in court, accused of trying to join ISIS in Syria. New details on that case.

Good morning. Welcome to EARLY START. I'm Christine Romans.

BERMAN: Great to see you today. I'm John Berman. It is Wednesday, March 18th, it is 5:00 a.m. in the East.

Breaking overnight, it was a resounding re-election victory for Israel's prime minister, with 99 percent of the votes and precincts now counted. Benjamin Netanyahu has a five-seat edge over his main opponent, the Zionist Union leader Isaac Herzog, in Israel's parliament. That is a much bigger margin than anticipated.

Herzog has called Netanyahu to offer his congratulations. Last night, the prime minister gave a victory speech, exalting in the comeback victory. Earlier polls days ago put him several seats behind in this race.

[05:00:02] But what happens now. Many observers now say the prime minister faces the serious challenge in reuniting the country after some very harsh words, right after the final moments of this race.