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Early Start with John Berman and Zoraida Sambolin

Nineteen Killed in Tunisia Terror Attack; Reported Death Threats Against Caroline Kennedy; UVA Student Arrest Sparks Outrage; Stocks Surge on Fed Statement. Aired 4:30-5a ET

Aired March 19, 2015 - 04:30   ET

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

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[04:30:16] CHRISTINE ROMANS, CNN ANCHOR: Terror attack at the museum. Tourists killed as gunmen storm the building. This morning, an intense search for accomplices to this crime and mounting questions on just who is responsible for the attack and what they have planned for the future. We are live with the very latest this morning.

JOHN BERMAN, CNN ANCHOR: Death threats against Caroline Kennedy. The U.S. ambassador to Japan reportedly targeted. An investigation has been launched. We are live with new developments.

ROMANS: Breaking overnight: new calls for justice in the bloody arrest of a University of Virginia student caught on camera. Many asking did police use excessive force. New details ahead.

Welcome back to EARLY START. I'm Christine Romans.

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

And developing this morning, a manhunt is under way in Tunisia for three terrorists who escaped after attacking the Bardo Museum in Tunis. Police say that five gunmen killed 19 people. Most of them were tourists. Twenty-two were hurt. Two of the terrorists were killed.

Now, no one has claimed responsibility, though there is some concern that ISIS could be behind it.

Let's go to the senior international correspondent Arwa Damon live for us in Tuna -- in Tunis, I should say.

Arwa, what's the latest?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning. And concern that not just ISIS behind it, but at the very least, ISIS supporters or sympathizers may have been responsible. A lot of people we have been talking to are understandably expressing their outrage that such an attack took place, targeting the very core of this country's economy, its tourism industry. This is a very proud nation of individuals that wants to ensure

following this attack that people should still keep coming to what they described is being a beautiful, loving country that is not used to this violence. But at the same time, upwards of 3,000 Tunisians, John, have traveled to the battleground in Iraq and Syria, many of them believes to be fighting alongside ISIS and other extremist groups. Hundreds of them believed to have come back home. A lot of analysts saying it was only a matter of time before this kind of attack took place.

Now, those three individuals still believed to be at large. The government is not forthcoming at this stage about sort of progress may or no have been made when it comes to apprehending them. But people we've been speaking to are saying that this is a wake-up call for Tunisia. Its security apparatus needs to clamp down and needs to make sure this kind of attack does not happen once again against a soft target like innocent tourists coming to enjoy the country. But also that perhaps more needs to be done on the broader scale when it comes to the war on terror. The role that Tunisia can play when it comes to the grander scheme and that global effort that is happening, but also needing to pay more attention to the violence happening next door in Libya, for example.

There are individuals here that have to a certain degree openly expressed their support for ISIS. Just last week, a Tunisian jihadi saying that people needed to wait, that there would be entities here official pledged to support for ISIS.

So, at this stage, the country is still very much on edge, still trying to come to grasp what took place. But a lot of people asking that very critical question of what is the government going to do next to make sure this is not happening again. Tunisia, out of all of the countries that were part of the Arab Spring, was the success story, at least up until now.

BERMAN: I think that is the big concern, the relative success story. Now, the target of terrorists in North Africa.

Arwa Damon in Tunis for us, thanks so much.

ROMANS: Happening now, Japanese authorities are investigating reported death threats against the American Ambassador Caroline Kennedy. Local media say police are tracking the source of phone calls made to the U.S. embassy in Tokyo, threatening to kill Kennedy. News of these threats came Wednesday as First Lady Michelle Obama arrived in Japan, on a five-day trip to that region.

The U.S. State Department says it is working with Japanese authorities.

(BEGIN VIDEO CLIP)

JEN PSAKI, STATE DEPARTMENT SPOKESWOMAN: We take any threats to U.S. diplomats seriously. We take every step possible to protect our personnel. We are working with the Japanese government to ensure that necessary security measures are in place. (END VIDEO CLIP)

ROMANS: Live for us in Tokyo this morning, CNN's Anna Coren with the very latest.

Good morning, Anna.

You know, it is concerning because threats against the ambassador, of course, are always concerning. But just recently in South Korea, we had the ambassador there slashed, with 80 stitches on his face. So, these threats the State Department must take seriously.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yes, absolutely, Christine. I think that is why they are taking these death threats so seriously because of what happened in Seoul earlier this month. Mark Lippert, as you say, slashed by a crazed man wielding a knife.

[04:35:01] And because of that, U.S. diplomats here now undergoing I guess more security than normal.

These death threats here to Caroline Kennedy made most of them to the U.S. embassy in Tokyo. But there were also death threats made to the U.S. consul general in Okinawa, which is, of course, with 50,000 U.S. troops stationed. We do know that an investigation is under way, and as we heard from the U.S. State Department, they are working with Japanese authorities to ensure the safety of U.S. diplomats.

But you have to say security has been increased of U.S. diplomats across the region because of what is going on.

Now, despite the death threats, Caroline Kennedy, she is going about her normal duties, her work. She is accompanying U.S. First Lady Michelle Obama while she visits Japan. She, of course, is here to push her girls education policy.

So, they met with the Japanese prime minister's wife this afternoon as well as the emperor and empress. And actually, Caroline Kennedy, she spoke about the story that really is dominating headlines in Japan, about the three Japanese tourists who were killed in those awful attacks in Tunisia.

So, Caroline Kennedy going about her normal business, but obviously, security very tight -- Christine.

ROMANS: Anna Coren for us this morning in Tokyo -- thank you, Anna.

BERMAN: This morning, Secretary of State John Kerry is in Switzerland for a new day of nuclear talk with Iran. In Washington, the State Department is offering assurances that Benjamin Netanyahu's resounding re-election as prime minister of Israel will have no effect on negotiations with Iran. That is in spite of Netanyahu's ferocious attack on the nuclear deal and speech to Congress.

Also, Arkansas Senator Tom Cotton siding with the prime minister at an event on Wednesday. The senator again defended his controversial letter to Iranian leader, saying that the United States must stand with the traditional allies and against Iran's drive for what he called regional hegemony.

Let's bring in CNN's Nic Robertson, who was at the nuclear talks in Switzerland.

Good morning, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, John.

Well, Secretary Kerry is due to sit down very shortly or if not right about now with the Iranian Foreign Minister Zarif. These talks come after three days of talks now. Yesterday, it was interesting because the two men met only twice, relatively short meetings compared to previous days. Most of the discussions yesterday were at the technical level. Not involving foreign minister Zarif or Secretary Kerry. And that really gives you an indication of where the sort of hard work and heavy lifting is going into the talks at the moment.

Foreign Minister Zarif took a walk before these talks began. I asked him what progress he was making. This is what he told me.

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ROBERTSON: Mr. Zarif. Good morning. CNN, sir. Can you tell us --

JAVAD ZARIF, IRANIAN FOREIGN MINISTER: Good morning to you.

ROBERTSON: Have you made progress, sir?

ZARIF: We are making progress. But there are issues that need to be resolved.

ROBERTSON: Which issues?

ZARIF: Even more progress is needed. Huh?

ROBERTSON: Which issues need progress, sir?

ZARIF: All of them. No, some of them.

(END VIDEO CLIP)

ROBERTSON: Interesting that he corrected himself there to say only some of them need progress, an indication there perhaps, trying to indicate that some things are being locked down. But the reality is and if you look at -- if you look at the type of meetings that took place yesterday, you had the P5-plus-1, that's, you know, Britain, France, Germany, the United States, China, Russia, having their deputy political leaders here for the meeting.

Secretary Kerry had said all along that really, this is the time where Iran needs to make key political decisions that whatever is happening on the technical level, it's the political talks where the key decisions have to be made. He only met twice yesterday with Zarif. And you only had the deputy European P5-plus-1 leaders here. You know, if we were seeing real political progress, we would have seen the P5-plus-1 foreign ministers. That didn't happen, John.

BERMAN: Nic Robertson right in the middle of these nuclear discussions, injecting himself with the conversations with the Iranian foreign minister. Great to have you with us, Nic.

ROMANS: All right. Thirty-nine minutes past the hour.

Happening today, Secret Service Director Joe Clancy testifies before a Senate committee. He's likely to get a good grilling after admitting to a House panel Wednesday that the Secret Service may have erased video surveillance footage of senior agents driving through an active bomb investigation. Clancy told lawmakers in a closed door meeting the agency routinely erases tapes after 72 hours.

House Oversight Committee Chairman Jason Chaffetz calls the policy unfathomable. He says this is not your local 7/11. This is the White House.

BERMAN: President Obama blasted the Republican's 2016 budget proposal which calls for big hikes and parts of defense spending, some cuts to domestic programs and calls for repeal of Obamacare. The president told the audience in Cleveland that the Republican spending plan offers a path to prosperity for those who are already prospering.

[04:40:02] He took a shot at the Republicans for going after his health care law yet again.

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BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It was one thing for them to argue against Obamacare before it was put in place. Every prediction they made about it turned out to be wrong. So, it's working better than I even expected.

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BERMAN: The White House claims that over 16 million Americans have gained health insurance coverage since the Affordable Care Act became law five years ago.

ROMANS: Time for an early start on your money this morning.

U.S. stock futures are up after a big rally yesterday after the Federal Reserve statement. The Dow ended the day up 227 points, back above 18,000. The Federal Reserve dropped its promise to be patient when it comes to raising interest rates. Fed Chair Janet Yellen stressing the Central Bank will not be impatient either. And the rate hike is unlikely at its next meeting in April.

Also, lower growth forecast. That's what really got the attention of Wall Street. They don't think the Fed is going to be racing to raise rates.

Target has agreed to pay $10 million to settle the class action lawsuit following that huge data breach. Victims able to prove they were harmed can collect up to $10,000 in damages. Target is required to improve its data security. The breach during the 2013 holiday season was one of the largest in history. It affected up to 110 million Target customers.

BERMAN: It's basically half of America.

ROMANS: Yes.

BERMAN: New outrage this morning over the arrest of a college student caught on camera. You can see him bloody and slammed to the pavement. Did officer go too far? We have new developments on the story, next.

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[04:45:14] ROMANS: Breaking overnight: racial tensions flaring at the University of Virginia after police officers arrested a black student outside a popular Irish pub. That student, 20-year-old Martese Johnson was taken to the ground and bloodied. Cell phone videos of the incident spreading very quickly in social media, triggering an angry demonstration on UVA campus last night. Johnson made a brief appearance to urge his fellow students to remain calm.

(BEGIN VIDEO CLIP)

MARTESE JOHNSON, ARRESTED UVA STUDENT: Regardless of your personal opinions and way you feel about subjects, to please respect everyone here. We are all part of one community. We deserve to respect each other, especially in times like this. Thank you.

(END VIDEO CLIP)

ROMANS: Johnson is charged with public intoxication and obstruction of justice. He is an elected member of the university's prestigious honor committee in charge of community relations. Virginia Governor McAuliffe is calling for an investigation into his arrest.

BERMAN: The jury at the trial of accused Boston marathon bomber Dzhokhar Tsarnaev will hear more testimony today about evidence recovered from the scene of a shootout between police and the Tsarnaev brothers in Watertown, Massachusetts. It happens days after the attack.

In court Wednesday, prosecutors focused on the deadly weapons in their possession, including two homemade bombs.

CNN's Alexandra Field has more.

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ALEXANDRA FIELD, CNN CORRESPONDENT: Christine, John, jurors got a glimpse of part of the arsenal of homemade bombs, including a Tupperware container stuffed with two or three pounds of explosive powder with fuses on top of it. They also saw two pipe bombs that never detonated, those pipe bombs about two inches in diameter. One of them formed in an "L" shape. A bomb tech who testified said it was similar to an improvised grenade designed to stop where it landed without rolling away. Those pipe bombs were recovered at Laurel Street, the scene of the shootout with Watertown police. That's the scene where the investigators recovered the Tsarnaev car, a green Honda Civic. The jurors got to see the items found in the car, including Tamerlan Tsarnaev's wallet, his driver's license still inside it.

Also, a receipt for two backpacks bought at a Target the day before the marathon bombings and two white gloves covered in blood. One investigator testified that the blood on those gloves is a match for Sean Collier's DNA. The MIT officer killed in his squad car just hours before that shootout in Watertown -- Christine, John.

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ROMANS: Alexandra, thank you for that.

A former U.S. Air Force mechanic accused of trying to join ISIS has pleaded not guilty. Forty-seven-year-old Nathan Webster Pugh entered that plea at his arraignment in New York federal court on Wednesday. Pugh was arrested two months ago after being deported from Egypt back to the U.S. He allegedly flown from Egypt to Syria trying to slip into Turkey, rather, trying to slip, and, quote, "fight violent jihad with ISIS." Prosecutors say FBI agents found Pugh was also viewing ISIS propaganda online.

BERMAN: Court documents revealed that Robert Durst may have been ready to run when he was arrested in New Orleans last weekend. He had more than $40,000 in cash on hand, and neck to head latex mask to disguise himself.

He is currently being held in the mental health unit of the Louisiana prison on drug and weapons charges. The 71-year-old Durst also faces a first-degree murder charge in Los Angeles in the death of a close friend in 2000. The FBI is looking into other unsolved murder cases in areas where Durst has lived.

ROMANS: Testimony resumes this morning in the trial of NFL star Aaron Hernandez, accused of killing his friend Odin Lloyd. A Massachusetts police officer testified Wednesday about footprints found at the crime scene. One print consistent with a Nike sneaker that Hernandez is seen wearing in surveillance video shortly before and after Odin Lloyd was killed. On cross-examination, the defense cited an earlier report in which officers said that the shoeprint lacked sufficient quality for comparison.

BERMAN: New information in the Penn State fraternity scandal. The new charges students in that fraternity could now face.

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[04:53:01] BERMAN: Members of the Kappa Delta Rho fraternity at Penn State could face criminal charges for posting lewd pictures of women on the private Facebook page. Police say if any of the frat brothers had romantic relationships with the women and posted the photos without their consent, they could be charged under the state's revenge porn law. CNN's Sara Ganim has more.

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SARA GANIM, CNN CORRESPONDENT: John and Christine, this was more than just bad fraternity behavior. This could be criminal.

Police are investigating the Kappa Delta Rho fraternity chapter at Penn State for photos that members allegedly posted to an invitation- only private Facebook page. Photos of women who appeared to be passed out, partially naked, others in compromising, embarrassing positions with comments from the brothers like this one, "LOL, delete those or we will be on CNN in a week." Well, guess what? Here we are on CNN talking about you.

Now, police say the other photos show at least illicit drug sales and one where brothers are showing their bare butts. Police say that's a hazing incident. The fraternity was swiftly suspended for a year. Penn State saying the conduct was, quote, highly inappropriate and appalling, offensive and inconsistent with the university community's values and expectations.

Now, because this was a private page, police tell me that much the content has been wiped clean and authorities are working with Facebook to get more evidence. Police found out about all of this because an alum of the fraternity who still had access to the page took screen shots and then handed them over to police.

Authorities are now trying to track down the 144 members who are a part of the group, as well as the women who are depicted in the photos. It is still unclear if charges will be filed, but it's certainly disturbing -- John and Christine.

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ROMANS: I think if every member of every single Greek chapter around the country should look at internal policies, fraternities and sororities, because these all have been different, but show the pattern, I think, of disregard if not a criminal pattern.

[04:55:06] I think that this whole search within the Greek community is a really, really, really good thing right now.

BERMAN: Good idea.

ROMANS: All right. More minimum wage workers getting a raise. The latest retailer to bump pay, that's next.

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ROMANS: All right. Let's get an early start on your money this morning.

U.S. stock futures are higher. Yesterday, stocks popped to the Federal Reserve's statement. The Dow ended up 227 points. The Fed Reserve dropped its promise to be patient when it comes to

raising interest rates. The Fed chair, there she is, Janet Yellen, she stressed the central bank will not be impatient either, and a rate hike is unlikely at the next meeting in April. The Fed also lowered growth forecast, which could delay a rate hike even longer.

Oil prices tanking again this morning. U.S. crude oil -- look at the chart, Berman -- down 3 percent, around $43 a barrel, $43 a barrel. That is near a six-year low. The supply glut is not going anywhere.

BERMAN: It's that little double dip at the end. It's got to be concerning for investors.

ROMANS: Yes, America's oil stockpiles keep climbing to historic levels. Cheap fuel, great for consumers, devastating for oil companies. More than 100,000 oil jobs around the world have been lost because of the decline in oil prices.

A big win for Seattle workers. Local franchise owners challenge the city's plan to have the highest minimum wage in the country, saying they could put them out of business, raising the minimum would hurt those franchise owners. But guess what? A judge rejected that argument.

Starting April 1st, workers will get at least $11 an hour. That will go up to 15 bucks an hour by 2017.

[05:00:03] Target also boosting employee wages. Workers will make at least $9 an hour at Target starting in April. It's following a trend, right? Wal-Mart did this earlier this year; Gap did it last year. You're seeing these companies raising wages in part because the job market is improving, turnover is an issue; they want to keep workers so they're realizing they have to pay - raise the pay.

BERMAN: Could be a good sign for the economy overall.

EARLY START continues right now.