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Early Start with John Berman and Zoraida Sambolin

Obama's YouTube Message to Iran; Museum Massacre: ISIS Claims Responsibility; U.S. to "Rethink" Israel Approach; NCAA Buzzer-Beaters & Bracket-Busters. Aired 5-5:30a ET

Aired March 20, 2015 - 05:00   ET

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

JOHN BERMAN, CNN ANCHOR: EARLY START continues right now.

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[05:00:14] CHRISTINE ROMANS, 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. Will the White House's new strategy to get a deal done pay off? We're live where U.S. and Iranian leaders are meeting this morning.

BERMAN: ISIS claiming responsibility for a museum massacre, 23 people were killed. This morning, new questions on just how involved ISIS really was, and if more attacks might be being planned. We are live in Tunisia with the latest.

ROMANS: A rocky relationship could be getting worse. The White House reassessing its relationship with Israel after controversial comments from Benjamin Netanyahu. We are live in Jerusalem with the latest on that important story.

Good morning. Welcome to EARLY START. I'm Christine Romans. Nice to see you this morning.

BERMAN: I'm John Berman. It is Friday, March 20th. It's 5:00 a.m. in the East.

Breaking overnight: President Obama is taking his case for nuclear deal with Iran, and directly to the Iranian people, with talks in Switzerland seemingly stalled on some issues, such as timeframes and sanctions, the White House is ratcheting up the pressure on Iranian leaders, with this video posted to YouTube. In it, the president urges Iranians to push their leaders to agree to a reasonable deal, he says, that would 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 have made progress, but gaps remain. And there are people in both our countries and beyond who oppose a diplomatic resolution. My message to you, the people of Iran, is that, together, we have to speak up for the future we seek.

(END VIDEO CLIP)

BERMAN: Senior international correspondent Nic Robertson is at the talks in Switzerland.

And, Nic, we have the multilayer negotiations going on right behind you at that hotel, plus the president speaking to the Iranian people, and the Iranian foreign minister speaking to the American people. A lot going on.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: There is a lot going on. Not clear if a meeting has actually started yet this morning between Secretary Kerry and Foreign Minister Zarif. It is expected to start, well, about half an hour ago, but it's not unusual for the meetings to slip.

But we had a chance to talk to the foreign minister this morning. And I wanted to know from him, is a deal still possible by the deadline 31st of March. This is 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: You know, which is interesting because earlier in the week, the Iranian side really said there was a lot of technical issues and put the focus on solving technical issues, where Secretary Kerry had really been saying the emphasis was on political compromise necessary by Iran.

But I asked the Iranian foreign minister as well, you know, in that context, what was his response to President Obama's message to the Iranian people. He told me that he tweeted that already and his tweet is very interesting. I'm going to read it to you.

He says, "Iranians have clearly made their choice. Engage with dignity. It's high time for the U.S. and its allies to choose."

This really is where you see the pressure coming out from the Iranian side here. He says, "It's high time for the U.S. and allies to choose, pressure or agreement."

He seems to be implying there that perhaps the United States and Secretary Kerry need to back off the pressure on the Iranian delegation here if they actually want to get an agreement. So, he's sort of flipping that issue of political will back towards the United States, it seems. Is there enough political will on the U.S. side to make this work? That appears to be his question, John.

BERMAN: Very interesting to see. And, of course, about 11 days left to this deadline.

Thanks, Nic.

ROMANS: All right. Four minutes past the hour.

Happening now, officials in Tunisia weighing an audio message apparently 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 of the attackers died. Authorities have arrested nine more people in connection with the massacre.

But ISIS is the not only jihadist group to claim it was behind the museum attack.

Let's bring in CNN's Phil Black in Tunis.

Phil, what's the latest here?

PHIL BLACK, CNN CORRESPONDENT: Christine, that ISIS audio recording praises the two gunmen who killed 23 people here in Tunis, describing them as knights of its caliphate and warned ominously that there will be more attacks to come and says this is just the first drop of rain for this country. But, crucially, it doesn't present any evidence linking these two gunmen with the command and control structures that ISIS has its heartland in Iraq and Syria, suggesting -- and that's why U.S. officials believe this could just be another ISI franchise -- a group of people acting autonomously, but inspired by the name, the goal, the messages of ISIS.

[05:05:14] Now, the authorities here haven't revealed who they believe was responsible, but they have arrested people, four for being involved in the attack. They have revealed that the gunmen were also wearing explosives which they didn't get to detonate, they say, which would have made the attack a lot more devastating had they've been able to do so.

They believe that they were recruited at a mosque here, but trained across the border in Libya where ISIS has established something of a foothold in recent months. The people of this country are still very much reeling from this attack. They are definitely angry, but also concerned about what it will mean for its economy and for its political stability.

This is an emerging democracy, one that relies very heavily on tourism to bolster its economy, to grow its economy, and today on this country's Independence Day, many people hope that rallies and demonstrations will be an act of defiance against the people who perpetrated this attack and they believe threaten this country's sustainability and future -- Christine.

ROMANS: Yes, tourism 20 percent of the country's economy, and it's really an important time for bookings for the summer right now. So, really critical time for the country. Thank you so much, Phil.

BERMAN: Developing this morning, the White House says it is reassessing parts of its relationship with Israel. That as Prime Minister Benjamin Netanyahu walking back some of the remarks he made before Israeli voters went to the polls this week.

The prime minister says he did not mean he is against a Palestinian state when he essentially said that on Monday. He said there will never been one when he is in office, only that political realities 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. And 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: We'll bring in Oren Liebermann live in Jerusalem for us.

Oren, that word "reassess", when the White House says it will reassess this relationship, which has been one of the strongest in the world, it has to cause at least a little bit of pause in Israel.

OREN LIEBERMANN, CNN REPORTER: It certainly does. The word "reassess" can be viewed as a non specific word, but warning which a lot of options for President Obama and the White House, specifically because the U.S.-Israeli relationship is so deep. It covers security, it covers financial help, it also covers diplomatic relationships.

Now, both leaders have reassured their countries that that will remain very strong, but there are many other options here. The U.S. has used their veto to Security Council a number of times to reject anti-Israel resolutions, as well as that the International Criminal Court where the U.S. discouraged Palestinians from pursuing any cases.

So, all of that could fall under the umbrella of the word "reassess", John. President Obama has quite a few options here.

BERMAN: And, of course, Oren, there was so much controversy when Benjamin Netanyahu came to the United States on the invitation of House Speaker John Boehner to discuss the Iranian nuclear talks. And now, we have learned overnight that House Speaker John Boehner will be visiting Israel soon.

LIEBERMANN: We have learned that from senior administration officials who confirmed that House Speaker John Boehner will be here sometime in the next week or two, sometime before Passover. So, you can view that as almost a favor. John Boehner did a favor to Netanyahu, gave him some free publicity, some very valuable publicity right before these elections. It certainly couldn't have hurt Netanyahu to get his face on TV a lot, even if he didn't talk politics during the speech. Netanyahu now reaching out to his strongest allies in the U.S. Congress and inviting them here to Israel.

BERMAN: Certainly not unusual for an American politician to go to Israel at anytime, but the timing here is certainly notable.

Oren Liebermann for us in Jerusalem, thanks so much.

ROMANS: All right. Nine minutes past the hour.

Christians are being driven out of Syria by ISIS. Attacks are forcing them across 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 the country, along with 500,000 Palestinian and Iraqi refugees. It's virtually crippling Lebanon's economy.

BERMAN: The White House is leaning towards 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 being reevaluated because attempts to start peace talks between the Afghan government and the Taliban have stalled. And there has been an offensive by the Taliban, also some al Qaeda people in there as well over the winter.

ROMANS: All right. The head of the Secret Service insists the scandal to rock the agency has been exaggerated and overblown by the media.

[05:10:02] Joseph Clancy telling lawmakers two agents never crashed their car into a White House barricade. They were only driving one or two miles an hour when they brushed against a plastic barrel. He claims no one at the agency manually erased videotapes of that incident, but the video may have been automatically deleted. Clancy says he's trying to determine whether the video can be recovered.

BERMAN: The U.S. is losing the battle against hackers, that is according to the U.S. Cyber Command chief. The government's effort to fight computer hacks are not working and the U.S. has reached a tipping point. Admiral Michael Rogers told lawmakers the U.S. needs to boost the military's cyber offensive capabilities. He claims the current approach is too defensive. The White House has some concerns that a more aggressive approach could harm diplomatic relations.

ROMANS: Time for an early start on your money. U.S. stocks futures are a bit right now to end the week. Yesterday, the Dow fell 117 points yesterday. The sixth day in a row of triple digit swings. Apple fell about 1 percent on its first day of trading in the Dow.

A higher minimum wage means a stronger economy, that's according to the Treasury Secretary Jack Lew. With Walmart, Target and others raising their minimum wages to at least $9 an hour, the White House renewing its push to raise the minimum wage. The treasury secretary told me in an exclusive interview yesterday, 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: It means the economy is strong enough if CEOs can raise the minimum wage because they want to keep the workers. That means the economy -- a sign of strength in the economy. And he dismisses those critics who say it hurts the economy. He says as wages go up, workers will spend the extra money.

I put that interview online, and there a lot of people on Twitter saying doesn't he know econ 101. Econ 101 is, if you raise wages, it hurts the small business and they hire fewer workers. He disagrees. He says he never believed that conventional wisdom. And that when you raise those wages, you see the money going back into the economy.

BERMAN: Look at this interview on CNN.com. It's really, really interesting.

ROMANS: Thank you.

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

(COMMERCIAL BREAK)

[05:15:35] BERMAN: New developments over allegations of police brutality in the arrest of the black University of Virginia student outside a bar in Charlottesville. The attorney for 20-year-old Martese Johnson disputes reports that the student had a fake ID card. Johnson was charged with public intoxication and obstructing justice. He needed ten stitches to close a gash you see there in his head after the arrest. The arrest sparked controversy over the use of excessive force by police.

CNN's 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)

ROMANS: Nick Valencia, thanks for that, Nick.

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

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, that after members of its Kappa Delta Rho chapter allegedly posted naked photos of unconscious women on a 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 pretty uncertain future on campus.

ROMANS: I think chapters across the country are taking a hard look right now, just trying to figure out what their policies and make sure these are isolated. This is not the Greek system at large.

All right. Seven minutes after the hour.

Another winter storm in the Northeast. Hip, hip, hooray! It isn't even winter.

Meteorologist Derek Van Dam is tracking the storm for us.

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. 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: All right. Derek, thanks for that.

BERMAN: All right. I lost just about everything there is to lose in the tournament.

ROMANS: We are both losers this morning, but big losers.

BERMAN: The number 14 coming up huge in the tournament so far. Brackets have been busted left, right and center. Andy Scholes has it all in the "Bleacher Report".

(COMMERCIAL BREAK)

[05:23:09] ROMANS: Oh, my goodness.

BERMAN: What a start to March Madness. Some crazy buzzer beaters, some crazy calls, major bracket busters, Cinderella stories. Andy Scholes as it all in the "Bleacher Report".

ROMANS: Hey there.

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Hey, good morning, guys.

Well, you know, it took just two games yesterday, two games for me to look at my bracket and then just tear it up and throw it against the wall. I'm one of those people who had Iowa State in the my final four. My bracket is in complete disarray, like a lot of people.

But what a first day of the tournament it was. You know, we saw a record five games decided by one point. Fourteen seed Georgia State taking on three seed Baylor was one of those. Panthers head coach Ron Hunter having to sit on a stool to coach after tearing his Achilles while celebrating to the big dance.

Georgia State down two. Time winding down, and Hunter's son R.J. hits the three, dad pulled off the stool celebrating. Georgia State pulls off a massive upset beating Baylor, 57-56. And as you can imagine, Coach Hunter very proud of his son.

(BEGIN VIDEO CLIP)

RON HUNTER, GEORGIA STATE HEAD COACH: I can't tell you how I feel inside. I mean, that's unbelievable. I wish every dad in America could have that opportunity what I just experienced with my son.

R.J. HUNTER, GEORGIA STATE GUARD: I hugged my sister, I hugged my sister and said, we're going to be one shining moment, because we always watch that as a family. You know, that's what we watch when your dad's a coach.

(END VIDEO CLIP)

SCHOLES: And another 3-14 match up yesterday, UAB taking on Iowa State. They may not have a football team, but the Blazers basketball team is going strong. Under a minute to go, William Lee hits the jumper to give UAB the lead. They hold on to beat Iowa State, 60-59. The first time since 1995 that two 14-seeds are going to move on to the round of 32.

We had a controversial ending to the SMU-UCLA game. The ponies were up by two with under a minute, and Bruins Bryce Alford chose the three, his attempts is offline.

[05:25:00] But Yanick Moreira touches the ball as it was still coming down. He is called for goaltending.

Take another look. It was definitely the right call based on the rule. UCLA would hold on to win this game, 60-59. It's a crushing loss for SMU. After the game, Moreira offered a very emotional apology for the goal tend.

(BEGIN VIDEO CLIP)

YANICK MOREIRA, SMU CENTER: It is all my fault. I should have let the ball hit the rim. I take the blame myself. I shouldn't have made that mistake. As a senior, you can't make those mistake at the end of the game.

(END VIDEO CLIP)

SCHOLES: You got to feel for him.

Well, in a game that was not close last night, the top seed in the tournament Kentucky had no problem with Hampton, winning 79-56. Up next for the undefeated Wildcats will be the 8 seed in the Midwest region, Cincinnati. And guess what, we get to do it all over again today, 16 more games on top. The action is going to tip off at 12:15 Eastern on CBS. You can watch games all day on TruTV, TBS and TNT.

Guys, I would show you the standing in the CNN.com bracket poll, but I don't want to.

ROMANS: Terrible.

SCHOLES: And also, both of you are beating me.

BERMAN: It's good. Can I ask you a quick question? You said that was the right call according to the rules. Some people have noted that that shot had no chance of going in, I mean, barely hitting the ring.

SCHOLES: Right. So, this is my take, though. The ball was still on its way down. He touched it on its way down. By touching it early, he really robbed UCLA of getting a rebound.

So, based on the rule, ball still coming down, probably going to hit the rim. It's a goal tend.

BERMAN: Thank you for that clarification, Andy. Thank you for being beneath us in the pool. We need that. We need that this morning.

SCHOLES: You're welcome.

ROMANS: Can I just say? Thank you, Fred Hoiberg, for the great season for the Iowa State guys.

BERMAN: You say it, but you don't mean it. They lost.

ROMANS: I do mean it. I do. They lost. I'm going through stages of grief over that, still. Everyone, even your kids had them in the final four. Sorry about that, Berman.

Twenty-six minutes after the hour.

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

(COMMERCIAL BREAK)