Return to Transcripts main page

Early Start with John Berman and Zoraida Sambolin

Huge Comeback Victory for Netanyahu; Iran Negotiations Continue; U.S. Veteran Arrested, Accused of Trying to Join ISIS; Detention Hearing for Durst on Monday; Dolce & Gabbana Walk Back Controversial Comments. Aired 5:30-6a ET

Aired March 18, 2015 - 05:30   ET

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


CHRISTINE ROMANS, CNN ANCHOR: Happening now, Israel prime minister Benjamin Netanyahu claiming a huge victory in an election many thought he could possibly lose.

[05:30:07] We're live with what comes next.

JOHN BERMAN, CNN ANCHOR: A U.S. veteran arrested, accused of trying to join ISIS in Syria, due in court in just hours. We have new details in this case just ahead.

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

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

Breaking overnight, a resounding reelection victory for Israel's prime minister. With 99 percent of precincts coutned, Benjamin Netanyahu has a five seat edge over his main opponent, Zionist Union leader Isaac Herzog, in Israel's parliament. Herzog has now phoned Netanyahu to offer his congratulations.

Last night, Netanyahu gave a victory speech exulting in a comeback after earlier opinion polls put him four seats behind. But many observers are saying the prime minister faces now serious challenge reuniting this nation after a harsh election campaign.

Turning now to CNN's Oren Liebermann standing by live in Jerusalem with the latest. Good morning, Oren.

OREN LIEBERMANN, CNN REPORTER: Good morning, Christine. One of the things we'll try to figure out here over the next few days is how those exit polls and how those polls leading up to the election were so dramatically off. It showed this to be a very, very close race, Netanyahu neck and neck with his main challenger, Isaac Herzog of the Zionist Union party. Of course, as we saw, that turned out not so much to be the case. So either Netanyahu had a dramatic comeback, or the polls were wrong from the very beginning. We'll have to figure that part out.

I'll tell you who doesn't care that right now, Benjamin Netanyahu. He sees these results and these results are from the actual ballot boxes, not from exit polling, and he knows he has what seems to be a very, very clear path to the premiership. And he will still be the prime minister.

It looks like he has a lot of options for creating a coalition government. He has a very strong lead on Isaac Herzog, a five seat lead, and he has a lot of options as to who he can put where in his coalition government. He is a master politician and a dealmaker and he's done this before -- he's created coalition governments before and he's ready to do it again.

He declared victory last night with the exit polls. Those exit polls showed a slight margin of victory and perhaps a difficult path but a very possible one to creating his coalition government. Now he can look at those numbers, still unofficial, of course, but from the ballot boxes instead of from polls, and he sees a very clear path to victory. As you mentioned, Isaac Herzog has already called to congratulate him as the next premier. So now it's up to Benjamin Netanyahu. Over the next few days, Christine, he'll call the parties, he'll talk to the parties, and he'll start to piece together a coalition government. As I said, Netanyahu has a lot of options for how he wants to piece that together.

ROMANS: All right. Oren Liebermann for this morning in Jerusalem, thank you.

BERMAN: Happening now, Secretary of State John Kerry in Switzerland, a third day of nuclear talks with the Iranian Foreign Minister, Javad Zarif. Iran's negotiators are already claiming major progress, telling state news media that 90 percent of technical issues have been worked out. U.S. diplomats are saying there are, quote, "still some tough, tough issues to address".

U.S. Senate Republicans are not backing down from their controversial letter to the Iranian leaders. "No regrets at all" is how the letter's author Senator Tom Cotton puts it.

I want to bring in our senior international correspondent Nic Robertson who is at the negotiations in Switzerland. Nic, what's the latest?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, good morning, John. Well, the latest this morning, no meeting so far between the Iranian Foreign Minister Zarif and Secretary Kerry. That's a little unusual. The last couple of days they will met well and truly by now, 8:00 a.m. in the morning they've met on the past two days. That hasn't happened today. Interestingly, the Iranian Foreign Minister going out for a stroll by the waterfront, a beautiful day here in Switzerland, going out for a stroll, and managed to ask him a couple of questions as he came back into the hotel.

(BEGIN VIDEO CLIP)

ROBERTSON: Mr. Zarif, CNN, sir. How is it going, sir?

JAVAD ZARIF, IRANIAN FOREIGN MINISTER: It's going.

ROBERTSON: It's going where, sir?

ZARIF: (INAUDIBLE)

(END VIDEO CLIP)

ROBERTSON: Well, a little hard to hear what he was saying in the final reply, he kept walking, but looking very relaxed. What he actually said was, "We're trying." And that's certainly what we're hearing from the State Department. The deadline is less than two weeks away, the 31st of March for a framework agreement.

What we heard from State Department officials yesterday was that some progress has been made in discussing the sort of how to get around some of the technical issues, the options that are available, but not so much as saying that there is an agreement, just sort of progress, discussing how agreement might be made on those technical issues.

Political issues still remain a challenge. Secretary Kerry has said this is a time where Iran needs to make those tough political choices about sanctions, about, if you will, coming clean about their past military use, or not, of nuclear material. That's still a key issue. So the deadline approaching, why no meeting so far today? We're told it's still TBD, time to be determined. Why it hasn't happened yet today, that's not clear, John.

BERMAN: Nic Robertson for us in Switzerland, questioning the negotiators as they head into the building. Thanks so much, Nic.

[05:35:00] ROMANS: Happening this morning, a U.S. Air Force veteran goes before a judge 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 knew a mujahadeen. Officials say Pugh was an experienced aircraft mechanic for the Air Force and American Airlines.

BERMAN: The new director of the Secret Service squaring off with outraged lawmakers. Joseph Clancy was grilled by a House committee about a series of embarrassing scandals at the agencies, including the latest incident involving two agents accused of disrupting a late night bomb investigation at the White House while allegedly driving drunk.

Let's get more from senior CNN White House correspondent Jim Acosta.

(BEGIN VIDEOTAPE)

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)

ROMANS: All right, thanks for that, Jim.

Republicans formally unveil their 2016 budget today. I calls for higher defense spending, deep cuts to social services, and eliminates deficits within a decade. It also assumes $2 trillion in savings from the full repeal of Obamacare. Most analysts agree it has zero chance of passing. The president's budget proposal would raise taxes on the wealthy to pay for infrastructure and education upgrades.

BERMAN: Kentucky Senator Rand Paul will reportedly make his presidential candidacy official next month. A campaign source tells the Associated Press that the senator plans to announce at a speech in Louisville on April 7th. Now, for those involved in Kentucky goings- on, that's one day after the NCAA championship, in which the University of Kentucky is heavily favored to win.

The first stop for Senator Paul in the days after the announcements will be Iowa, New Hampshire, and South Carolina. Pretty important states.

ROMANS: Good places to go in you're going to run for president.

He has flirted with running, before but Donald Trump may be serious this time about seeking the 2016 Republican nomination. "The New Hampshire Union Leader" reporting 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 coming ahead of his visit to New Hampshire Thursday for meetings with a group of veterans and local business leaders.

BERMAN: They've got to lick a block of salt.

ROMANS: Time for an EARLY START on your money.

Asian and European markets are mostly higher this morning. U.S. stock futures up slightly. Yesterday the Dow fell 128 points, oil prices fell for the sixth day in a row to the lowest price since 2009. Investors also nervous about how quickly the Fed will start raising interest rates. Today, we could get a good clue if the Fed removes the word "patient" from its statement. For months, the Fed has said it will be patient about raising interest rates. Investors think the central bank will finally remove that promise from its statement today, signaling a rate hike could come as soon as June.

BERMAN: All right, 38 minutes after the hour. The FBI raids the house of accused killer real estate heir Robert Durst. New developments in this case next.

[05:39:10]

(COMMERCIAL BREAK)

ROMANS: Robert Durst waking up in a new correctional facility this morning, one equipped to deal with the mentally ill. A detention hearing has now been set for Monday with the real estate heir facing murder charges in Las Angeles, gun charges in New Orleans, and a revived murder investigation in New York.

CNN's Jean Casarez has the latest on the investigation.

(BEGIN VIDEOTAPE)

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)

BERMAN: Jean Casarez, thanks so much.

In the trial of accused Boston Marathon bomber Dzhokhar Tsarnaev, a long time friend Steven Silva testified that 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 jumpsuit. He is currently serving time on drug and weapons charges. Prosecutors at the Tsarnaev trial could rest their case this week.

ROMANS: All right, it is on the docket. The judge in the trial of Colorado movie theater massacre suspect James Holmes has set opening statements for April 27th. That's more than a month ahead of schedule. The 27-year-old Holmes is charged with killing 12 people, wounding 58, in the Aurora theater shooting. He has pleaded not guilt by reason of insanity. Officials say jury selection is moving along faster than expected.

[05:45:00] One interesting coincidence, one of the potential jurors in the Aurora case, is a survivor of the 1999 Columbine massacre. The judge qualified that jury candidate after the person assured the court he could be fair.

BERMAN: Former NFL star Aaron Hernandez may have been angry at Odin Lloyd, the man he is accused of murdering. A witness testified at the trial, saying 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 on the crime scene, the impression from Nike sneakers also that Hernandez allegedly was wearing.

ROMANS: All right, 45 minutes past the hour. Let's take a look at what's coming up on NEW DAY. Alisyn Camerota joins us this Wednesday morning. Hi Alisyn.

ALISYN CAMEROTA, CNN ANCHOR, "NEW DAY": Hi, guys. Good morning. So we will be following that breaking news overnight that Prime Minister Benjamin Netanyahu declares victory in Israel's elections. What does this mean for those strained U.S.-Israel relations? And what about negotiations over Iran's nuclear program? We are exploring all of the angels for you this morning.

And a frightening first, the first U.S. military veteran accused of trying to join ISIS. Why would a former airman allegedly want to help the terror group? Who was this Air Force mechanic? Also, there's evidence this morning that ISIS is getting more desperate. We will tell you about that when Michaela, John, and I see you at the top of the hour.

ROMANS: You're right. Can't wait. Thanks so much.

Dolce & Gabbana caught up in controversy over comments about guy marriage and children raised in nontraditional families. Now they're explaining what they really meant exclusively to CNN. Want to hear this. We're live, next.

(COMMERCIAL BREAK) [05:50:15] ROMANS: Italian fashion designers Dolce & Gabbana now trying to extinguish a social media firestorm. In a CNN exclusive this morning, they say they respect how all people choose to live their lives, but that others should respect different points of view, too. Those comments after Domenico Dolce referred to babies born through in vitro fertilization as, quote, "synthetic children" born from, quote, "rented wombs".

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

ANNA COREN, CNN CORRESPONDENT: Yes, hi, Christine. Certainly the boys, as they are referred to, scaling back their comments, if you like, believing that this is a bit of a storm in a teacup that simply was blown out of proportion. But they claim, though interviewed by an Italian magazine over a week ago, and that the discussion was about families, they were asked whether they wanted to have children obviously through IVF.

Now, Stefano Gabbana, he said, yes, this is something I would love to do perhaps in the future. But as far as 56-year-old Domenico Dolce, who is the older of the two, he said I'm a gay man, I cannot have children. He does not believe it adheres to his family values, which is interesting considering he is a gay man in the fashion industry, but he does hold these conservative views.

He, however, says he didn't mean to offend anybody. Take a listen to what this they had to tell me 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: Domenico Dolce saying while he doesn't believe in IVF, he certainly doesn't judge others who do. Now, as we know, Sir Elton John infuriated by their comments in the magazine because of course he has two children by IVF. And they basically asked for peace with the singer. They said they are not going to boycott his music, they love his music and, really, Christine, they did not mean to offend. Personal views, as I say; did not mean to offend.

ROMANS: I'm telling you, people all around the world are talking about those comments. Sounds like they never meant to -- never meant it to be such a public discussion from what was just in a magazine story. Thank you so much, Anna Coren, and great job getting that exclusive access to those two for their response.

52 minutes past the hour. Round three of negotiations between the U.S. and Cuba in the books. No word from either side about reopening embassies or restoring diplomatic ties, but President Raul Castro did have some harsh words for the White House, for hitting Venezuela with a new round of sanctions and calling Cuba's closest ally a threat to America's national security. Now, despite those comments, the two sides have agreed to maintain communications moving forward. It's a start.

Another health insurance company hacked. An EARLY START on your money is next.

[05:53:33]

(COMMERCIAL BREAK)

[05:56:57] ROMANS: Let's get an EARLY START on your money this morning.

U.S. stock features barely moving. Yesterday, the Dow fell 128 points, oil prices the culprit there. They fell for a sixth day in a row. But today all eyes are on the Fed. If the Federal Reserve says it's staying patient on raising interest rates, that could spark maybe another rally. If it makes no mention of the word patient, it could signal a rate increase as early as June.

Goodbye, ma belle. Today is the final day AT&T will be included in the 30 stocks that make up the Dow. The world's most valuable company Apple will take its place at the close of trading. Apple already the biggest company in the S&P 500. That stock, Apple stock, is up 12 percent. I mean, AT&T is not going away; you can still traded, it just won't be in the Dow 30.

Hackers stealing a huge amount of information from health insurer Premera Blue Cross. The company is still investigating, but says up to 11 million customer records were compromised. What was taken -- birthdays, e-mails, Social Security numbers, insurance claims. This is the second major hack on a health insurance company this year. Earlier this year, hackers stole similar information on 80 million people from Anthem.

58 minutes past the hour. Israeli Prime Minister Benjamin Netanyahu claiming, declaring a huge victory in what many thought was an election he may lose. That is the top story this morning and "NEW DAY" follows that right now.