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Early Start with John Berman and Zoraida Sambolin

President Obama's New Message to Iran; Museum Massacre: ISIS Claims Responsibility; U.S. to "Rethink" Israel Approach. Aired 4- 4:30a ET

Aired March 20, 2015 - 04:00   ET

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

JOHN BERMAN, CNN ANCHOR: Breaking overnight: President Obama speaking out directly to the people of Iran, posting a YouTube video as historic nuclear talks between the U.S. and Iran begin to stall.

[04:00:24] So, will this new strategy to get a deal payoff? We're live where U.S. and Iranian leaders are meeting this morning.

CHRISTINE ROMANS, CNN ANCHOR: ISIS claiming responsibility for a museum massacre. Twenty-three people killed in the attack. This morning, new questions on how involved the terror organization was and if more attacks are being planned.

BERMAN: And a rocky relationship could be getting worse. The White House reassessing its relationship with Israel after controversial comments from Prime Minister Netanyahu. We are live in Jerusalem with the latest.

Good morning, everyone. Welcome to EARLY START. I'm John Berman.

ROMANS: And I'm Christine Romans. It is Friday, March 20th. It's 4:00 a.m. in the East.

Breaking overnight: President Obama taking his case for a nuclear deal with Iran directly to the Iranian people. The talks in Switzerland seemingly stalled on political issues like timeframe and sanctions, the White House posts a video on YouTube. The president urging Iranians to push their leaders to agree to a reasonable deal that will lead to what he called a better path, including an easing of sanctions and more jobs for young Iranians.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The days and weeks ahead will be critical. Our negotiations made progress, but gaps remain. And there are people in both our countries and beyond who oppose a diplomatic resolution. My message to you, people of Iran, is that together, we have to speak up for the future we seek.

(END VIDEO CLIP)

ROMANS: Senior international correspondent Nic Robertson is at the talks in Lausanne.

Nic, what's the latest?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I'll tell you, I was just speaking with the foreign minister there as he was walked back in for his morning walk, and I was asking what he thought about President Obama's message to the Iranian people and to negotiators here, and he said, "Well, I already tweeted that," with a smile on his face. So, he's certainly is a supporter, it seems, of getting a deal here and the necessary steps that are taken.

When he went out to take his walk as he does every morning here about half an hour ago, as he left the hotel here, I asked him then what he thought the chances are of getting a deal by the deadline on the 31st of March. Here's what he told me.

(BEGIN VIDEO CLIP)

ROBERTSON: Do you think a deal is possible by the 31st of March?

JAVAD ZARIF, IRANIAN FOREIGN MINISTER: I think a deal is possible anytime. It defends on the political will, whether there is a political will to reach one. It's possible.

(END VIDEO CLIP)

ROBERTSON: Well, there you have it. For him, it really is about the political will which is interesting because earlier this week, he was talking about the need to make progress on technical issues and we heard earlier in the week, Secretary Kerry really putting emphasis on political compromise. And now, it definitely seems that the Iranian foreign minister is certainly in lock step with Secretary of State John Kerry, that it is the political compromises that are necessary right now, which is the essence of what President Obama was saying in his new year's message to the Iranian people.

But can they make those compromises? It's still not clear. It does seem as if some progress has been made on the technical issues. But as we were told by State Department officials yesterday and members of the Iranian negotiating team here as well, there is no deal until everything, all the technical points, are agreed and can be put together. And right now, that hasn't happened -- Christine.

ROMANS: So, Nic, what are the political points that they need to compromise? And who needs to do the compromising, the U.S. or the Iranians?

ROBERTSON: You know, it really seems both sides are saying the same thing. That there needs to be political will on both sides, it seems, and both sides need to compromise. I mean, one of the things that the Iranians want is an immediate lifting of the sanctions. This is, you know, a political decision that they need to take -- on the United States side, there is an expectation and a need to hear the Iranians commit themselves to a system of inspections and oversight that will -- that will prevent them breaking out to getting a weapon on a sort of breakout path, if you will, in less than a year.

So, part of that involves coming clean, if you will, about the past military uses of nuclear materials. So, you know, these are some of the big political compromises that the Iranians have to take and the sanctions issue when and how and what sanctions to lift will obviously be a very important one for the United States, maybe to make compromises there, too.

ROMANS: The only easy thing happening is the lovely springtime strolls in the morning or bike rides for Secretary Kerry. Thanks so much, Nic Robertson, in Lausanne.

[04:05:00] BERMAN: Developing this morning: the White House says it is reassessing parts of the relationship with Israel. That as Prime Minister Benjamin Netanyahu is walking back some of the remarks before the Israelis went to the polls this week. The prime minister says he did not mean he is against a Palestinian state. When he said on Monday, there will never been one while he is in office, he only meant political realities will prevent it.

The White House does not seem to be buying that explanation.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: I haven't changed my policy. I never retracted my speech in Bar-Ilan University six years ago. I don't want a one-state solution. I want a sustainable, peaceful two-state solution.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Words matter. And that is certainly true in this instance. And I know very well that the Israeli prime minister is aware of that. He was talking about something that even he would acknowledge is a very important issue, an issue that has serious consequences for the country that he leads.

(END VIDEO CLIP)

BERMAN: I want to bring in Oren Liebermann live in Jerusalem for us.

And, Oren, that word "reassess" is very powerful and interesting here.

OREN LIEBERMANN, CNN REPORTER: Well, John, that leaves President Obama with a lot of options. The U.S. and Israel have a deep relationship, security coordination and with financial relationship and diplomatic ties. Both leaders have said those remain strong, but there are other options here, of course.

The United States protects Israel on a number of international fronts. For example, at the U.N., U.S. has used its Security Council veto to shoot down a number of resolutions against Israel and for example at the International Criminal Court. The U.S. has discouraged Palestinians from pursuing cases against Israel. All of that could be part of the word "reassess". And we could find out over the next few months and years exactly what President Obama meant there.

BERMAN: Oren, what is the Palestinian response so far, partially to the comments from the prime minister, I guess the retraction and everything that has gone on in the last few days?

LIEBERMANN: So, yesterday, we got a chance to speak with Dr. Saeb Erakat, he's the chief Palestinian negotiator. He says, look, regardless of whatever Netanyahu said or says or will say, he believes the true Netanyahu, the one who says what he means came out the day before the elections when he said he does not favor and there will not be a two-state solution, a Palestinian state under his premiership.

So, Dr. Erakat says that means the Palestinians will continue to pursue their statehood on the international front, for example at the U.N. and at the ICC, John. That means we could find out sooner rather than later exactly what the U.S. meant when they used that term "reassess".

BERMAN: Yes. It will be a delicate path moving forward, I think.

Oren Liebermann for us in Jerusalem -- thanks so much, Oren.

ROMANS: All right. Happening now: officials in Tunisia weighing in on audio message from ISIS, that claims responsibility for the attack on the landmark museum there. Tunisian officials say 23 people were killed, including one who died later at the hospital. Two attackers have been killed. Authorities arrested nine people now, nine more people in connection with this massacre. But ISIS is not the only jihadist group to claim it was behind the museum attack.

I want to bring in CNN's Phil Black in Tunis.

Good morning, Phil.

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Good morning, Christine.

Yes, there seems to be competition online to claim responsibility for this attack. But the ISIS claim is notable. In it, this audio recording, it praises the men responsible. They say this is just the first that Tunisia can expect, the first drop of rain it says.

But it doesn't present any hard evidence linking this gunman with the ISIS command and control structures in its heartland in Syria and Iraq, suggesting that this could be an ISIS franchise, just the latest where locals inspired by the messages and goals of ISIS go out and conduct to organize and perpetrate this kind of attack. The Tunisian authorities have not revealed who is responsible. As you say, they've nine arrested, four they say for having direct links to the attacks itself, five others for being associated with those people, with the group.

The people of Tunisia are trying to come to terms and they are very concerned about what this means for the country. Today is their independence day. It is always a significant day in the country's calendar, but especially so with the rallies and demonstrations expected on the capital streets, Tunis today, many hope this is a symbolic act of defiance and unity in the face of those who organize this attack, trying to damage this country's economy, its political system by attacking what they say relies on most, and that is tourism -- Christine.

ROMANS: All right. Phil Black for us -- thank you so much, Phil.

BERMAN: About 10 minutes after the hour right now. Christians are being driving out of Syria by ISIS. Attacks by the terrorists are forcing these Christians to cross the border into Lebanon by the thousands. The Lebanese government is lifting visa restrictions to allow them in. More than 1.2 million Syrian refugees have now entered Lebanon, along with 500,000 Palestinian and Iraqi refugees, which is a drag on Lebanon's economy.

[04:10:05] ROMANS: The White House is leaning toward slowing down the troop withdrawal from Afghanistan. The original plan was to reduce the number of troops from about 10,000 to just over 5,000 by the end of 2016. But that is now being reevaluated because attempts to start peace talks between the Afghan government and the Taliban have stalled. And attacks by al Qaeda are expected to continue well into next year.

BERMAN: The head of the Secret Service is just the latest scandal to rock the agency has been exaggerated and overblown by the media. Joe Clancy told lawmakers the two agents never crashed their car into a White House barricade and only driving one or two miles an hour when they brushed against the plastic barrel. He claims no one at the agency manually erased videotapes of that incident, but video may have been automatically deleted. Clancy says he's trying to determine whether the video that was deleted can be recovered.

ROMANS: America is losing the battle against hackers. According to the U.S. Cyber Command chief, the government's efforts to combat computer hacks are not working and we've reached a tipping point. Admiral Michael Rogers telling lawmakers the nation needs to boost the military's cyber offensive capabilities. He claims our current approach is too defensive. The White House is concerned a more aggressive approach could harm diplomatic relations.

BERMAN: It could be several weeks or more before the Senate takes up the nomination of Loretta Lynch for attorney general. Lynch was nominated all the way back in November, but Senate Republicans will not allow a vote unless Democrats agree to pass a human trafficking bill with provisions that Democrats say are anti-abortion included.

Democrats have already blocked that measure five times. When one top Republican senator was how much pressure Republicans now feel to confirm Lynch, she replied, zero.

ROMANS: All right. Time for an early start on your money this morning. U.S. stock futures, they're up a bit right now to end the week. It is Friday, if I didn't mention that before.

BERMAN: No.

ROMANS: Yesterday, the Dow fell by 117 points, the sixth day in a row, six days in a row of triple digit swings. Even Apple couldn't push the Dow higher. Apple, of course, is now in the Dow. The stock fell almost 1 percent on the first trading day as part of the Dow Jones Industrial Average.

ROMANS: All right. A higher minimum wage means a stronger economy. That's according to the Treasury Secretary Jack Lew, that Walmart and Target and others raising minimum wages to at least $9 an hour. The White House renewing its own push to hike the federal minimum.

The treasury secretary told me in an exclusive interview yesterday that higher wages are necessary as the labor market tightens.

(BEGIN VIDEO CLIP)

JACK LEW, TREASURY SECRETARY: I think employers want to retain good workers. They want to be able to recruit good workers. And in my talk to CEOs, they tell me that what they are waiting for is they have confidence in the future. I take it as a good sign when companies start doing that. It means that they have the confidence to make those kinds of decisions.

(END VIDEO CLIP)

ROMANS: Confidence is so important in the economy.

Lew dismisses critics who say a higher minimum wage will hurt the economy. He says as wages go up, workers will spend the extra money and stimulate the economy. He is overall really confident on the economy here right now.

He says wages are starting to show signs of rising, will continue to rise. These companies are doing it. The shows they have confidence in the economy. Confidence is what is the secret sauce of this whole thing.

BERMAN: Let's hope he's right. It would be great.

Thirteen minutes after the hour.

The University of Virginia student left battered and bloody after being arrested is now refuting the story from officers of what happened that night. New details ahead.

(COMMERCIAL BREAK)

[04:16:30] BERMAN: The FBI is joining an investigation in Mississippi into the death of an African-American man who was found hanging from a tree. Fifty-four-year-old Otis Byrd had been missing for more than two weeks. Authorities say he was found with a bed sheet tied around his head and skull cap on his head. The exact cause of death has not been determined. Authorities cannot say if his death was suicide or homicide.

ROMANS: We are following developments concerning allegations of police brutality against a black University of Virginia student outside a bar in Charlottesville this week. The attorney for 20-year- old Martese Johnson disputing reports had a fake ID card. Johnson was charged with public intoxication and obstructing justice. He needed ten stitches to close a gash in his head after the arrest that was -- sparked controversy over excessive use of force by police.

Our Nick Valencia has more.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN CORRESPONDENT: John and Christine, students I've spoken to who know Martese Johnson say that they're not only shocked that this happened, they're shocked that this happened to him, a student who was one of the most prominent student here on campus with ties to the university. Police say he was uncooperative during the arrest, his lawyer says that Johnson was the victim of excessive force.

UNIDENTIFIED MALE: At no time throughout the encounter did Martese present, as has been reported by some in the media a fake ID. Nevertheless, Virginia ABC officers who are present on the scene questioned my client about being in possession of false identification. The conversation resulted in my client being thrown to the ground, his head hitting the pavement. The officer's knees pressed into his back, his face and skull bleeding and needing surgery.

VALENCIA: The Virginia state police they've launched a criminal investigation, a comprehensive one that will look into the conduct of the officers involved in the arrest -- John, Christine.

(END VIDEOTAPE)

BERMAN: Nick Valencia, thanks so much.

The embattled mayor of Ferguson, Missouri, says he will not resign. Mayor James Knowles tells CNN affiliate KTVI, the effort to recall him is preventing the reform protesters want. The Ferguson City manager and police chief resigned, following a Justice Department report that found widespread racism in the police department. Mayor Knowles says without them, it is more important than ever that he see Ferguson through the mayor changes.

ROMANS: A New York judge refusing to unseal testimony heard by a grand jury in the chokehold death of Eric Garner. The grand jury declined to indict a white police officer in that case. Video of the incident sparked national protest. Garner died of cardiac arrest. The judge ruled there was not a valid reason for setting legal precedent and making the secret information public.

The prosecution in the trial of Boston marathon bomber Dzhokhar Tsarnaev closed to wrapping its case. That's expected to happen when testimony resumes next week. In court Thursday, the focus was on a jihadist material retrieved from various devices belonging to Tsarnaev. The trial moving at a break neck pace really after admitting in its opening statement that Tsarnaev carried out the bombing. The defense appears focused on the sentencing phase and saving Tsarnaev from the death penalty.

BERMAN: New fallout from the campus scandal of Penn State. University president Eric Barron announced that a reevaluation of the entire fraternity system may be required after members of its Kappa Delta Rho chapter allegedly posted photos of naked, unconscious women on a Facebook page -- private Facebook page. The fraternity has already been suspended for one year, and an investigation is under way. Penn State and the national chapter of Kappa Delta Rho are now working to determine the fraternity's rather uncertain future on campus.

[04:20:05] ROMANS: You know, I think that -- I think a review on every campus, I think campus officials should be doing that and so should university officials, both students and, quote/unquote, "grown ups" and faculty. They just need to take a look at what's going on here. Make sure this is not systemic, that these are off cases.

Twenty minutes past the hour.

The first day of spring, it's bringing snow apparently to the Northeast. How bad will it be?

BERMAN: Bad.

ROMANS: Details next.

(COMMERCIAL BREAK)

BERMAN: So I was in Miami yesterday, 84, sunny and perfection.

ROMANS: Yes, it is not Miami up here. A new winter storm is coming to the Northeast. And it's not even going to be winter when it hits.

Meteorologist Derek Van Dam tracking it for us -- Derek.

DEREK VAN DAM, AMS METEOROLOGIST: Good morning, John and Christine.

I'm sure I'm not the only one who's counting down the hours for spring to begin. Well, wait no longer, today is the day, 6:45 this evening. But I almost feel guilty showing these graphics, because we have 36 million people under some sort of winter weather advisory from Philadelphia through the Big Apple.

We have a winter storm that is developing across the East Coast. It's going to bring a mix to the nation's capital and snow across Pennsylvania and New York state. You can see how much snow in the forecast. Roughly 2 to 4 inches for New York City, perhaps again a mixture for Washington, D.C.

If you're looking for warmth, head to Atlanta.

[04:25:00] Definitely not feeling like spring in Chicago or New York. Again, snow settling in to the Big Apple by this afternoon and evening. Warm weather with plenty of rainfall across the Gulf Coast states.

Look what is headed our way across the Northeast to end the weekend. Another cold blast of air from Chicago, Detroit, and all the way to New York City.

Back to you.

ROMANS: Wow, Derek, you know, a snow bird e-mailed me recently. The only thing we salt down South are the roads.

No, I say this wrong every time, is a margarita. You salt the roads up here. You salt the margarita in Florida.

BERMAN: I take my roads frozen.

All right. Great. It's 4:25 in the morning in the East.

ROMANS: Happening now, historic nuclear talks between the U.S. and Iran stalling. But this morning, President Obama speaking directly to the people of Iran on YouTube. What he said to them, next.

(COMMERCIAL BREAK)

ROMANS: Breaking overnight: a last-ditch effort to reach a nuclear deal with Iran. President Obama taking to YouTube to plead his case directly to the people of Iran. Tense negotiations happening right now. We'll take you to them live.

BERMAN: ISIS taking credit for the museum massacre, 23 people killed creating concern around the world. Just how involved was ISIS really and if more attacks coming. We're live with the latest.

ROMANS: New tension between the White House and Israel. President Obama vowing to reassess the relationship after controversial comments from Prime Minister Benjamin Netanyahu. We are live as that drama unfolds.

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

BERMAN: I'm John Berman. Thirty minutes past the hour right now.

[04:30:00]