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Early Start with John Berman and Zoraida Sambolin

Manhunt for 3 Terrorists; Reported Death Threats Against Caroline Kennedy; UVA Student Arrest Sparks Outrage; Stocks Surge on Fed Statement; NCAA Round of 64 Started Today. Aired 5-5:30a ET

Aired March 19, 2015 - 05:00   ET

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


[05:00:01] CHRISTINE ROMANS, CNN ANCHOR: Target also boosting employee wages. Workers will make at least $9 an hour at Target starting in April. It's following a trend, right? Walmart did this earlier this year. Gap did it last year.

You are seeing these companies raising wages in part because the job market is improving and turnover is an issue. They want to keep workers, so they realize they have to raise their pay.

JOHN BERMAN, CNN ANCHOR: It could be a good sign for the economy overall.

EARLY START continues right now.

(MUSIC)

ROMANS: Terror attack at the museum. At least 19 people killed. More injured when gunmen open fire. This morning, the search for accomplices on the loose in that attack. We are live with the very latest.

BERMAN: Happening now. Investigators examining death threats against Caroline Kennedy. U.S. ambassador to Japan reportedly targeted. We have new information on the investigation ahead.

ROMANS: Breaking overnight, calls for justice after a college student is left battered and bloody after an arrest. An investigation now launched. We've got those details ahead.

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

BERMAN: Great to see you. I'm John Berman. It's Thursday, March 19th. It is 5:00 a.m. in the East.

And developing this morning: a manhunt under way in Tunisia for three terrorists who escaped after attacking the Bardo Museum in Tunisia. Police say the five gunmen, five, 19 people, most of those dead tourists, 22 people were hurt at least. Two of the terrorists were killed.

Now, no one has claimed responsibility yet. Though there is concern and questions this morning about whether ISIS could be connected to this.

Our senior international correspondent Arwa Damon is live for us in Tunis.

Arwa, good morning. What's the latest?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning.

Well, this morning, the country's prime minister telling radio station that the identity of one of the gunmen who was killed in the Bardo Museum just behind us was, in fact, known to intelligence services, although no specific information as to why this particular information was flagged. Tunisia greatly concerned, of course, about the gunmen who may or may not have been affiliated to ISIS. This country has the highest number of fighters in the battle field in Iraq and Syria, upwards of 3,000 according to some estimates, the vast majority of them fighting alongside ISIS and other extremist groups. Hundreds believed to come back home. Many analysts saying it was only a matter of time before an attack such as the one that we saw taking place yesterday would transpire.

People we have been speaking to very angry, very upset about what took place, believing that this was a deliberate blow to the very core of the country's economy and that is the tourism industry. This is a very proud nation. People really wanting to ensure at this critical juncture that the area remains safe for tourists and people should not shy away because of the attacks that took place. And that is what happens next is very critical.

What is the government going to do to ensure an attack like this against such a soft target does not happen once again. People also wanting the world to know that this is a tolerant nation, that there are holy sites for Jews, for Muslims, and Christians that are located here. The threat posed by ISIS is very real. Not just from the potential of individuals who were fighting alongside ISIS, returning, carrying out similar attacks here, but also because of the violence that is raging in Libya and the border shared between the two countries.

Very vital at this stage for this country is, of course, what happens next, especially with those three suspects still at this stage at large. And no direct claim of responsibility. Though great concerns this was another is inspired attack.

BERMAN: Right. Of course, great concern that this is the site that is the success story in the Arab world right now in terms of Democratic reforms.

Arwa Damon, thanks so much for being with us.

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 to the U.S. embassy in Tokyo, phone calls threatening to kill Kennedy. News of those threats came Wednesday as First Lady Michelle Obama arrived in Japan on her five-day trip to the 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.

Just last month, there was an attack on the South Korean ambassadors. So, they must take this very, very seriously.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yes, that's right. A few weeks ago, Mark Lippert, the U.S. ambassador to South Korea attacked in Seoul by that crazed man wielding a knife, slashing Mr. Lippert's face and arms, he sustained 80 stitches.

[05:05:09] It is because of that that security here is at an all-time high for U.S. diplomats not just in Japan, but really across the region. Obviously, Japanese authorities taking these threats extremely serious. We know that these threats were made here at the embassy in Tokyo last month. They were made by a man speaking in English, saying that he wanted to kill Caroline Kennedy. The other threats made to the counsel general in Okinawa, which is the southern island here in Japan.

And that is where 50,000 U.S. troops are stationed. But as we heard from the U.S. State Department, they are working with Japanese authorities to ensure the safety of the U.S. diplomats. But as far as Caroline Kennedy is concerned, she is going about her duties.

She, of course, is accompanying U.S. First Lady Michelle Obama on her trip to Japan. She is in country pushing her campaign for girls education. She then heads to Cambodia tomorrow.

Former U.S. President Bill Clinton is also in Japan. Caroline Kennedy at his side as well.

And we heard from her earlier today when she spoke to the press about the horrific attacks in Tunisia which claimed the lives of three Japanese tourists, also injuring another three. That's a huge story in Japan today.

But Caroline Kennedy obviously going about her duties, but obviously under a tight security, Christine.

ROMANS: Obviously. All right. Anna Coren for us in Tokyo -- thank you, Anna.

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

Meanwhile, Arkansas Senator Tom Cotton siding with the prime minister at an event on Wednesday. Cotton defended once again his controversial letter to Iranian leaders. He said that the United States must stand with its traditional allies in the region.

Let's go live to these talks right now and bring in CNN's Nic Robertson in Switzerland.

Nic, what's the latest?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, John, I think when I talked to you a few minutes ago, I was saying that Secretary Kerry, he was expected to be with the meeting with foreign minister of Iran, Zarif, right around now. That meeting we understand has slipped. The reason it has slipped is because of a technical meeting going on right now between the U.S. energy secretary and head of Iran's atomic energy organization.

And this is symptomatic of what we have seen yesterday. There's a lot of meetings about technical issues than the substantial political progress. Secretary Kerry has said it is important that Iran has not been addressing so far.

But I did see the Iranian foreign minister this morning. He took an early morning stroll, and I asked him then what progress was being made. This is what he told me.

(BEGIN VIDEO CLIP)

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: I think that was quite instructive when he said "all of them" and then he said "some of them", trying to indicate that at least something has been sort of nailed down and moved forward here. But the reality is the technical talks are very complex, are very detailed. What we hear from the State Department is, it is like a Rubik's cube. You know, you organize and agree part of it and move something else on the table, which affects what you've already agreed. So, you don't have the whole puzzle in place until all pieces are in place.

But again, it's a technical talk this morning. But it's a political avenue that really where the hardest progress in Iran's biggest decisions have been made, according to Secretary Kerry and perhaps informing us about how that is progressing. The fact that only the deputy political leaders of the P5-plus-1 came here yesterday, rather than the foreign ministers of Russia, China, France, Britain, Germany, who were all part of what is P5-plus-1 with the United States -- John.

BERMAN: I think, Nic Robertson in Switzerland, that fact that you elicited those comments from the foreign minister is so instructive, important for him obviously to say that some progress is being made. Thanks so much, Nic.

Happening today, Secret Service Director Joe Clancy testifies before a Senate committee. He is likely to be questioned rather vociferously 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.

[05:10:05] He says this is not your local 7-Eleven. This is the White House.

ROMANS: All right. Time for the early start on your money this morning.

U.S. stock futures are down a bit right now. But stocks surged yesterday after the Federal Reserve statement. The Dow ended up 227 points, back above 18,000. The Fed dropped its promise to be patient as it plans the first interest rate hike in nine years.

Fed Chair Janet Yellen stressed the Central Bank will not be impatient either and that a rate hike is unlikely at its next meeting in April. No surprise there. Wall Street had been betting on an increase in June or later.

The Fed also lowered growth forecasts which could delay a rate hike a bit longer.

You know, the Fed doesn't want to raise rates if the economic recovery is in jeopardy. So, that is what the issue is there.

Ten minutes past the hour, a college student covered in blood, slammed on to the pavement while being arrested. An investigation now launched. Were officers using excessive force? New calls for justice, overnight, after the break. (COMMERCIAL BREAK)

ROMANS: Breaking overnight: racial tensions flaring at the University of Virginia after white 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 quickly spreading 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.

[05:15:01] 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, days after the marathon attack.

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

CNN's Alexandra Field has more.

(BEGIN VIDEOTAPE)

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.

(END VIDEOTAPE)

ROMANS: Alexandra, thank you for that.

A former U.S. Air Force mechanic accused of trying to join ISIS has pleaded not guilty. 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 Turkey, trying to slip into Syria. FBI agents say Pugh was 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 now says it is looking into other unsolved murder cases in areas where Durst has lived over the years.

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 of those prints consistent with a Nike sneaker that Hernandez is seen wearing in surveillance video shortly before and shortly after Odin Lloyd was killed.

Now, on cross-examination, the defense cited an earlier report in which officers said that the shoeprint lacked sufficient quality for comparison.

BERMAN: Members of 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 will be charged under the state's revenge porn law.

The fraternity has been suspended for one year. Penn State's president says some members could be expelled.

ROMANS: No charges for the man who landed a drone on the White House lawn back in January. The Secret Service investigation found the man lost control of a friend's drone overnight and went to sleep, not knowing where it went. He notified the Secret Service after seeing news reports of a drone on the White House grounds.

BERMAN: All right. Welcome to the dance. Robert Morris and Dayton staged big comebacks to get into the NCAA tournament field of 64. Dayton doing it on the home court. Andy Scholes with the details and preview of the madness ahead in the "Bleacher Report".

ROMANS: You may have noticed a lot of recent headlines featuring airline passengers behaving badly, but the FAA says a number of unruly passengers is actually down. In 2014, only 121 incidents who were reported to the FAA. That's 26 fewer than 2013, and the lowest reported in the last two decades.

FAA regulation says no person may assault, threaten or interfere with a crew members performance of duties aboard an aircraft. Anyone who does is breaking federal law and face a hefty fine of up $25,000. Now, the FAA rarely fines people. According to the documents obtained by "USA Today" of about750 incident reports, between 2009 and 2013, only one in six resulted in civil fines.

(COMMERCIAL BREAK)

[05:23:26] BERMAN: Let the madness begin. The NCAA tournament round of 64 tips off later today. Just a few hours to finish your brackets.

ROMANS: You're done?

BERMAN: I'm done.

ROMANS: I'm done, too.

Andy joins us now with the "Bleacher Report". Andy, do you have Kentucky winning like everybody else?

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: I sure do, guys. You know, it is not hard to pick the team that hasn't lost yet this season. It's been dominating their opponents.

But before we get to today's action, there were two more play-in games last night. Dayton and Boise State playing for an 11th seat. Dayton, the first team since 1987 to play the tournament game on their home court.

Funny moment in the second half. His teammate pulls his shorts down accidentally. He held the ball and pulled his shorts up at the same time. That takes skill.

Now, under 40 seconds to, Jordan Steinberg (ph) hits the three for the flyers. That capped off a 10-2 run. Boise State would have one last chance to win the game, but their shot no good. Dayton wins, 56-55.

The other match up last night featured Robert Morris taking on North Florida. Steve Putnam, an Internet sensation, doing his thing to the song "Turn Down For What." That was all North Florida fans had to cheer about. Robert Morris had a big second half. They came back to win this game, 88-57. They play Duke on Friday.

And, of course, the round of 64 tips off at 12:15 Eastern. The action continues throughout the day on CBS, TruTV, TBS and TNT. The Warriors and Hawks battling it out for the best record in the NBA

last night in Oakland, both teams shorthanded. No Klay Thompson for Golden State, no Kyle Korver for Atlanta, MVP candidate Steph Curry was on hand. So, check out the crazy behind the back pass to Andrew Barbosa. He would knock down the three right there. Warriors beat the Hawks, 114-95. Golden State, an NBA beast, 54-13 this season.

Greg Hardy has found a team. The Dallas Cowboy signing the all pro defensive end to a one-year deal yesterday. It could be as much $13.1 million. Hardy is facing a potential suspension for violating the NFL domestic violence policy. He was convicted of domestic violence but appealed, requesting a trial by jury. Hardy accuser would not cooperate, so the case was dismissed.

All right, guys, about seven hours until the brackets are due. Just go to CNN.com/brackets to play. Our pool has probably the best prize of any pool in the country. If you beat us, Wolf Blitzer will personally tweet a congratulations to you.

I'd say, you better get in there and get your brackets in.

BERMAN: We can also offer an EARLY START mug if such a thing existed.

Andy, can I ask you -- I never won an NCAA pool. And I've watched a lot of sports in my life. Have you ever won? Does anyone actually win?

SCHOLES: I actually won big one year. The year that Kansas won beating Memphis when Mario Chalmers hit that three to send the game into overtime. Let me tell you this, I was going crazy when he hit three. That was the Derrick Rose team, that was so amazing, they should have won at all. But I had Kansas that year. And Mario Chalmers won that bracket. So, he holds a special place in my heart.

(CROSSTALK)

BERMAN: That's good to know.

ROMANS: Over at CNN Money, we have a stock picking bracket if you want to pick your final four stocks over the course of --

SCHOLES: I don't think I would do too well.

ROMANS: I've got Apple to win.

All right, thanks. Nice to see you.

SCHOLES: All right.

ROMANS: Twenty-six minutes past the hour.

Happening now: the search for accomplices in the deadly attack at a museum. Tourists killed as gunmen stormed the building. Who was behind the attack and will there be more to come? We are live after the break.

(COMMERCIAL BREAK)