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Early Start with John Berman and Zoraida Sambolin

Iran Talks Continue Past Deadline; U.S. House Speaker Visits Israeli Leader; Lufthansa Knew About Co-Pilot's Depression; Boehner And Netanyahu Speak Out; Indiana Governor Promises To Fix New Law; Cheap Gas Savings. Aired 5:30-6a ET

Aired April 01, 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: Deeply depressed and his employer knew. New evidence that the pilot who flew himself and 149 others into a mountain opened up about a severe episode of depression. So why was he allowed to fly? The Lufthansa CEO speaking just moments ago. He says he's sorry. What's the company going to do to make sure it never happens again?

JOHN BERMAN, CNN ANCHOR: New backlash this morning over Indiana's Religious Freedom law.

[05:30:02] Critics claim it will legalize discrimination. That has not stopped another state from passing its own version of the law. We have new developments ahead.

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

ROMANS: I'm Christine Romans. It's 30 minutes past the hour. It's nice to see you this morning. Happening this morning, the deadline has passed to reach a deal curbing Iran's nuclear program. Now, negotiations continue in Switzerland as Iran and major world powers agree to stay at the bargaining table at least through today.

Zero hour was supposed to be midnight last night, but local time, but diplomats say enough progress has been made toward a framework deal that they'll keep talking for now. For the latest, I want to turn to global affairs correspondent, Elise Labott.

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: As you said, that deadline came and went. Negotiators worked through the night, took a brief break, and now are meeting again with Iran. But it does seem as if although progress has been made.

Those key issues that we've been talking about for days, the pace of lifting U.N. sanctions against Iran, the amount of nuclear research and development on advanced technology Iran could do, and also their enrichment program, all those key sticking points that have been here all week still on the table.

So while the ministers are meeting, we could have some kind of general vague statement coming out today about what's already been agreed to. But it's quite clear the fact that they're still meeting and unable to announce something reflects that there is still a lot to be negotiated -- John.

BERMAN: Elise Labott for us at those talks. Now, the White House admits that the Tuesday deadline for a deal was, quote, "at least a little arbitrary." White House Press Secretary Josh Earnest says that negotiations have been going on for more than a year, and he says the president is willing to walk away from the table if world powers cannot reach an acceptable deal.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: No deal is better than a bad deal. The United States will not sign on to a bad deal. The only kind of diplomacy that we envision is one that definitively shuts down every path to a nuclear weapon that Iran has and imposes and Iran cooperates with a set of extremely intrusive inspections.

(END VIDEO CLIP)

BERMAN: Leading the charge against the nuclear deal is Israeli leader, Benjamin Netanyahu. Happening right now, the Israeli prime minister is meeting in Jerusalem with House Speaker John Boehner and a delegation of House Republicans.

We're expecting a live statement from them any moment. You can see that podium on the bottom part of your screen. Of course, the speaker gave the prime minister a platform to talk about the nuclear deal before Congress just last month.

Let's bring in CNN's Oren Liebermann live in Jerusalem where, Oren, any minute now we should hear from the prime minister and the speaker.

OREN LIEBERMANN, CNN REPORTER: John, you're absolutely right. This scheduled statement perhaps a little more fluid than we expected. But we should hear any minute now from Netanyahu coming out and then a short time later we expect to hear from House Speaker John Boehner.

In this critical week, as these deadlines have come down to the wire and now perhaps in a sort of overtime, Netanyahu has been the most vocal critic. And now in these critical hours getting very much support from congressional Republicans.

It's Boehner here right now. It was Senator Mitch McConnell here earlier this week, promising Netanyahu that if there is a deal, it would be House Republicans and congressional Republicans pushing for a required congressional approval of that deal.

That could be a big roadblock to President Barack Obama as he pushes forward for a deal. Mitch McConnell also said if there isn't a deal, then he agrees with Prime Minister Netanyahu. That's what's needed are tougher sanctions, and he said that Republicans would push for tougher sanctions.

Netanyahu very much knows where his strongest support comes from. It comes from House Speaker Boehner and the House Republicans, and it comes from Senate Republicans. And he's using that. He's using this as a high-profile opportunity to once again lobby against the deal or lobby against what he sees as the more difficult parts of the deal and what poses a threat to Israel.

Again, we expect that statement any moment now from Netanyahu and perhaps a short time later, we also expect to hear from House Speaker John Boehner. Even if they don't say much, just their presence here, just Boehner's presence here is a very powerful statement, a very powerful show of support, John, for Benjamin Netanyahu.

BERMAN: Of course, the timing also as the discussions in Switzerland are wrapping up over Iran's nuclear deal. Oren Liebermann in Jerusalem will bring you the prime minister's statement the minute it happens.

ROMANS: All right, new developments this morning in the crash of Germanwings Flight 9525. Turns out Lufthansa knew co-pilot, Andreas Lubitz, battled severe depression back in 2009 while he was still in flight school.

Lufthansa now acknowledging Lubitz informed the company himself. All 149 victims of the doomed Germanwings jetliner could be identified by the end of the week. That is another new detail this morning.

Meanwhile, the CEO of Lufthansa paying his respects to the victims of the flight, Carsten Spohr, placing flowers, saying a prayer in the village of Le Vernet, near the crash scene.

[05:35:07] I want to bring in CNN's Erin McLaughlin live from Le Vernet. The first question, Erin, shouted at Carsten Spohr, the CEO of Lufthansa, when he finished his remarks, his heartfelt remarks, really, was the question when did you know that this pilot had problems.

ERIN MCLAUGHLIN, CNN CORRESPONDENT: Yes, it's a question that he didn't answer, Christine. He was here to pay his respects to the victims. He said that not a single hour goes by at Lufthansa that they do not think about terrible tragedy.

He arrived a short while ago, the CEO of Lufthansa, Carsten Spohr. Just over that way he laid a wreath of flowers. That has become a place of incredible significance for the families and friends of the victims of Flight 9525.

Authorities say over 450 people connected or close to the victims have visited that area. They've come with flowers from messages from home. It's been a site of incredible grief and incredible mourning. And today it was the CEO of Lufthansa's turn to express his sorrow. Take a listen to what he had to say.

(BEGIN VIDEO CLIP)

CARSTEN SPOHR, LUFTHANSA CEO: We do everything in Lufthansa to support, to turn this place into a place of mourning, for the relatives and friends of the victims, and also to restore this beautiful countryside as much as we can after the investigation has finished.

(END VIDEO CLIP)

MCLAUGHLIN: Now, after he finished that statement, as you said, Christine, the journalists were screaming out, "when did you know," a reference to a statement put out by Lufthansa yesterday.

In that statement, they disclosed as part of their internal investigation their findings that in 2009, the co-pilot, Andreas Lubitz, 27 years old, accused of crashing Flight 9525, sent an e-mail to the Lufthansa flight school, saying -- declaring or letting them know that he had a bout of severe depression.

Now, that has sparked plenty of questions, wondering what sort of protocols, what sort of procedures Lufthansa followed following that e-mail. And we simply don't have answers to those questions.

Lufthansa saying that they have forwarded the e-mail to investigators and cannot comment further because of that ongoing investigation, but people here very much want to know what, if anything, could have been done to prevent this tragedy -- Christine.

ROMANS: Erin McLaughlin, he said he was sorry, he said it several times, and he wasn't speaking from notes it looks like so this is a CEO trying to speak from the heart in what is a very emotional space. Erin McLaughlin, thank you.

I want you to listen to that sound. He was talking to the press there on that beautiful mountainside and he did not -- he did not answer this question when it was shouted to him. Listen.

(BEGIN VIDEO CLIP)

SPOHR: Merci beaucoup, Merci.

UNIDENTIFIED MALE: Sir, when did you find the 2009 e-mail from Lubitz?

SPOHR: I'm sorry. I'm sorry. There is no --

UNIDENTIFIED MALE: Why did it take you so long to publish the e-mail?

SPOHR: There is no questions and answers --

(END VIDEO CLIP)

ROMANS: So you can see that will be -- that is the question for Lufthansa at this point, when did they know? What did they know? And he said in his remarks, he said it will take us a long time to understand how this could have happened.

BERMAN: And that was not the place to answer any questions, frankly.

ROMANS: I agree.

BERMAN: But he will face questions later today and that is the first one, I can almost guarantee you, he will be asked.

It's 38 minutes after the hour. New backlash for Indiana's Religious Freedom law criticized as legalized discrimination. That state's governor has promised to fix, but now another state, a new state has passed its own version. We'll break it all down next.

(COMMERCIAL BREAK)

[05:41:49]

BERMAN: Live pictures of Israeli Prime Minister Benjamin Netanyahu speaking after a meeting with House Speaker John Boehner. Let's listen to what he says.

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: -- only for peaceful purposes doesn't square with Iran's insistence in keeping underground nuclear facilities, advanced centrifuges and a heavy water reactor. Nor does it square with Iran's insistence on developing ICBMs and its refusal to come clean with the IAEA on its past weaponization efforts.

At the same time, Iran is accelerating its campaign of terror, subjugation in conquest throughout the region, most recently in Yemen. The concessions offered to Iran in Lausanne would ensure a bad deal that would endanger Israel, the Middle East and the peace of the world, and the peace of the world.

Now is the time for the international community to insist on a better deal, a better deal would significantly roll back Iran's nuclear infrastructure. A better deal would link the eventually lifting of the restrictions on Iran's nuclear program to a change in Iran's behavior.

Iran must stop its aggression in the region, stop its terrorism throughout the world, and stop its threats to annihilate Israel. That should be nonnegotiable and that's the deal that the world powers must insist upon. Thank you.

BERMAN: A short statement from the Israeli leader, Benjamin Netanyahu, talking about the nuclear negotiations going on in Switzerland right now between Iran and five world powers primary and the United States. He just said that the world, as it were, should insist on a better deal than the one being discussed.

Of course, we do not actually have the details of that deal. Those details will emerge perhaps as the day progresses. He reiterated what he said before Congress. He said that Iran needs to stop its aggression in the region.

He says Iran needs to stop aiding terrorists throughout the world, and he said Iran needs to renounce its calls to annihilate Israel, that the prime minister would like to see as part of a deal.

ROMANS: We'll be hearing more from him probably later with a statement with John Boehner, the speaker of the House that likely happening probably in the next 20 minutes or so. BERMAN: All right, new fallout this morning from a Religious Freedom law in Indiana and a similar one that just advanced in Arkansas. Protesters gathered in Little Rock on Tuesday, calling on the governor there to veto a bill just passed by the Arkansas House.

There is growing opposition from businesses in that state including Walmart. Indiana's governor, Mike Pence, promised to fix the Religious Freedom law in his state.

He says he claims it is not a license to discriminate, but admits there is what he calls a perception problem. Let's get more now from CNN's Miguel Marquez.

MIGUEL MARQUEZ, CNN CORRESPONDENT: Christine, John, fast-moving changes here in Indiana today. Protests again in the state, this time Bloomington where several hundred people gathered to protest SB101. The governor, Mike Pence, in a stunning reversal, this is a guy who had been fighting against any change to this law that he signed in private.

Today, he came out to say he doesn't think it invites discrimination, but he still wants a fix.

[05:45:10]

(BEGIN VIDEO CLIP)

GOVERNOR MIKE PENCE (R), INDIANA: It's been a tough week here in the Hoosier State, but we're going to move forward. I've come to the conclusion that it would be helpful to move legislation this week that makes it clear that this law does not give businesses a right to deny services to anyone.

(END VIDEO CLIP)

MARQUEZ: And just how this fix is taking shape is really changing as well. At the beginning of Tuesday, we understood there was already language that lawmakers were considering.

By the end of the day, though, it was clear the House speaker had reached out to businesses and sports leaders and universities and activists across the state to figure out what exactly that bill had to say in order to please everyone and get to the governor's desk.

We understand that bill, that fix, may be in committee here at the statehouse later today -- Christine, John.

ROMANS: All right, Miguel Marquez for us.

More companies now say the new Indiana law is simply bad for business. NASCAR and Nike joining the critics, they say the law allows discrimination. Both organizations say they are committed to diversity and inclusion.

NASCAR and Nike joining this very long list, Apple, Angie's List, Yelp, NCAA, Eli Lilly, one of the most important employers inside Indiana has said it's worried about retaining and attracting top talent around the country to come and live and work in Indiana.

A similar fight happening between businesses and government in Arkansas, Walmart has its headquarters in Bentonville, Arkansas. The Walmart CEO, Douglas Millen, asked Governor Asa Hutchinson to veto House Bill 1228, the Religious Freedom Restoration Act.

The nation's biggest retailer and the largest private employer says that law does not reflect Walmart's values or Arkansas's value. If you need more proof this law is essentially a close for business sign on those states, take it from legendary investor, Warren Buffett. He told our Poppy Harlow the legislation is wrong.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNN CORRESPONDENT: The governor of Indiana, Mike Pence, has said this week that he will fix the law that he will move to make sure that it does not discriminate against anyone.

However, when he was asked over the weekend whether he would add sexual orientation, be in favor of adding sexual orientation as a protected class in Indiana. He said that is not something that he's working towards right now. What should be done to fix this?

WARREN BUFFETT, CHAIRMAN AND CEO, BERKSHIRE HATHAWAY: Well, I think if people can exercise discrimination based on sexual orientation, then it's wrong. I don't know how the law reads exactly, so I don't know what words you would change.

But when you get all through, when the dust settles, if you read the law and you can discriminate against people based on sexual orientation, I would say that somebody better do something about it.

HARLOW: Do you think sexual orientation to be added as a protected class in the state of Indiana?

BUFFETT: Well, I think generally, yes, the answer is I think they are entitled to equal rights and equal acceptance 100 percent in the eyes of the law.

(END VIDEOTAPE)

BERMAN: Now, the governor of Indiana says he wants to fix the law to make clear that you would not be able to discriminate against gays and lesbians. However, there is no statewide ban on discrimination on the table in that state. He says he will not support. He does not support --

ROMANS: Yesterday he said this is a perception problem, not a legal problem. The biggest minds in business and they are very high-paid legal teams are saying no, it's a legal problem and you should fix it.

BERMAN: The defense rests in the Boston marathon bombing trial after a very short list of witnesses. His attorneys want to keep the death penalty off the table. Will they succeed? That's next.

(COMMERCIAL BREAK) [05:52:26]

ROMANS: The Boston marathon bombing trial on a fast track toward a verdict. The defense is resting its case after calling just four witnesses. Lawyers for accused marathon bomber, Dzhokhar Tsarnaev, trying to shift the focus to his older brother, Tamerlan, who they say was the mastermind of this attack. They want to spare Tsarnaev from the death penalty, his lawyers do. Jury deliberations will begin Monday following closing arguments.

BERMAN: The trial of former New England Patriots tight end, Aaron Hernandez, resumes this morning. He is accused of murdering his friend, Odin Lloyd, in 2013. In court Tuesday, Patriots owner, Robert Kraft testified that Hernandez told him he was innocent when asked if he was involved in Lloyd's murder. Prosecutors are expected to rest their case on Thursday.

ROMANS: Legendary singer/songwriter, Joni Mitchell, hospitalized this morning in Los Angeles. The 71-year-old was taken to the hospital after she was found unconscious at her home. A message on her web site says she is in intensive care but awake and in good spirits.

All right, you, whether you notice it or not, you're saving hundreds of dollars at the pump this year so what exactly are you doing with all that extra cash?

BERMAN: Let it ride, baby.

ROMANS: An EARLY START on your money is next.

(COMMERCIAL BREAK)

[05:57:07]

ROMANS: Let's get an EARLY START on your money this morning. Cheap gas is saving you hundreds of dollars. The average price for a gallon of regular is $2.41. That's more than a dollar cheaper than this time last year.

The White House says the typical household will save $750 at the pump this year. But Americans aren't spending that savings. They're pocketing it. That's a big disappointment to businesses expecting a boost from cheap fuel.

But here's where people are spending their money, on the prom. The average price tag for prom this year is $919. This always surprises me, every year.

BERMAN: That's a lot of money.

ROMANS: That's tickets, that's clothes, limos, flowers, pictures, and food.

BERMAN: Axe body spray, got to buy a lot of Axe.

ROMANS: Speak for yourself. The number even more surprising when you break it down by income, families with less than $25,000 plan to spend 1400 bucks. Those making more than $50,000 will spend less, about $800. It's so curious to me. That means people below the poverty line are spending nearly $600 more than those who are well off. It's as if this prom is this big event that you really want to cherish. It only happens a couple times.

BERMAN: It happens a lot of times.

ROMANS: How many times did you go?

BERMAN: I went to a lot of proms. I wore the white tuxedo. I do not advise that. If you want good advice, there is this place to go for all your finances. "Smart Is The New Rich: Money Guide For Millennials" by Christine Romans, it is a fantastic book available now.

ROMANS: And the looks on date's face when you showed up with a top hat cane and a white tux?

BERMAN: Disappointment that hunts me until this day. All right, the deadline has been extended, the intense nuclear negotiations happening right now with Iran. "NEW DAY" with the very latest now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: The State Department said that the talks would go on for another day.

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": The United States has not ruled out military force to prevent Iran from going nuclear.

UNIDENTIFIED FEMALE: Lufthansa now says it knew Andreas Lubitz suffered depression.

UNIDENTIFIED FEMALE: Cell phone video from on board that plane.

UNIDENTIFIED MALE: We hear more screaming and that's the end of the sequence.

UNIDENTIFIED MALE: The commanders do not believe these reports.

PENCE: I don't support discrimination against anyone.

UNIDENTIFIED MALE: This is about freedom of speech, not about discrimination.

UNIDENTIFIED MALE: This is about whether liberty and justice for all will really be for all.

UNIDENTIFIED MALE: In Arkansas, a similar bill could soon be law.

UNIDENTIFIED MALE: I love him. Every class, I feel like it's church.

UNIDENTIFIED FEMALE: They say that you somehow manage to get them alone.

UNIDENTIFIED MALE: I never assaulted.

(END VIDEOTAPE)

ANNOUNCER: This is NEW DAY with Chris Cuomo, Alisyn Camerota, and Micheala Pereira.

CHRIS CUOMO, CNN ANCHOR: Good morning to you, and welcome to your NEW DAY. It's Wednesday, April 1st, 6:00 in the east. The high stakes talks on Iran's nuclear program now in overtime this morning. They blew past the self-imposed deadline. We're learning that three of six foreign ministers involved in the talks have left with significant hurdles remaining.

ALISYN CAMEROTA, CNN ANCHOR: U.S. negotiators briefing President Obama late last night.

[06:00:01] So will all sides today agree to any deal or even a framework? We have this story covered the way only CNN can.