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Iraqis Regain Part of Ramadi; Strategy Shift in Iraq?; ISIS on a Rampage in Syria; Deadly Flooding in Texas and Oklahoma; Protests Erupt in Cleveland; Aired 4:30-5a ET

Aired May 25, 2015 - 04:30   ET

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

[04:30:01] CHRISTINE ROMANS, CNN ANCHOR: Taking back part of that city one week after it fell to the terrorists. Showing signs of life after U.S. defense secretary questioned their will. All this as we get disturbing new reports of a blood bath in Syria at the hands of ISIS fighters.

Let's start with the situation unfolding right now in Ramadi. CNN senior international correspondent Arwa Damon live from Baghdad for us this morning.

And, Arwa, tell us what -- what kind of advances the Iraqi military has made now on that city of Ramadi.

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the force that they are using to try to push ISIS back toward the city is made up of yes, the Iraqi Security Forces, that is the army and the police, but also this unconventional force, the Iranian-backed Shia paramilitary units that have proven to be quite instrumental, albeit in some cases controversial as well, given the sectarian dynamics that do exist in Iraq.

But in this case, they are also reaching out and actively employing the Sunni tribes. But these tribes are very lightly armed. They have been trying to fight ISIS for quite some time now and there have been calls and promises made by the Iraqi government that they will be arming them. And this is very critical that the Iraqi government does actually make good on that pledge at this stage.

And quite a few people we've been talking to have been quite upset at Secretary Carter's remarks, feeling as if they are unfair and misplaced, saying look, it was the Americans that at the end of the day did train up the Iraqi Security Forces. So if there are failures, the U.S. also bears some responsibility for that. They will also say that the structuring of the Iraqi army was faulty to begin with.

And many of those who have been fighting and dying on the frontlines and have seen their comrades dying on the frontlines, say, look, we have the will to fight. The problem is with our leadership and a lack of support from the government in Baghdad and the U.S.-led coalition -- Christine.

ROMANS: Arwa, do Iraqis in the capital fear ISIS could proceed on to Baghdad? DAMON: Well, there's this sense of fear because of the psychological

warfare that ISIS has so successfully launched. Even just the rumor that ISIS is approaching or that ISIS may have entered an area in Baghdad is enough to create panic and chaos. But that being said, interestingly, a lot of people do not believe that ISIS is going to be able to take over Baghdad the same way that it took over Mosul and some of the other cities. Why? Not because of the capabilities of the Iraqi Security Forces, but because people, whether they support this or not, do believe that Iran will not allow Baghdad to fall.

They are very reliant on the fact that Iraq's powerful neighbor would prevent that at least from happening. And of course, it's not an ideal scenario, but at this stage people say it's all that they have and all that they can actually trust.

ROMANS: All right. Arwa Damon for us in Baghdad this morning. Thank you so much for that, Arwa.

Now with ISIS making stunning advances across the Middle East, the Pentagon signaling it is open to a shift in strategy in Iraq. As Defense Secretary Ash Carter questions Iraq's will to fight the terrorists in an exclusive interview with CNN.

Let's get more from that this morning from -- rather, from Athena Jones at the White House.

ATHENA JONES, CNN CORRESPONDENT: Good morning, Christine.

Ever since the fall of Ramadi in Iraq and later Palmyra in Syria this past week, there's been a lot of discussion about whether the U.S. needs to change its entire strategy towards ISIS, to insure the defeat of the terror group. Secretary Carter is saying that one of the big problems at least in Iraq is with the Iraqi forces themselves. Take a listen to what he had to say.

(BEGIN VIDEO CLIP)

ASH CARTER, DEFENSE SECRETARY: What apparently happened was that the Iraqi forces just showed no will to fight. They were not outnumbered. In fact, they vastly outnumbered the opposing force. And yet they failed to fight. They withdrew from the site. And that says, to me, and I think to most of us, that we have an issue with the will of the Iraqis to fight ISIL and defend themselves.

Now we can give them training. We can give them equipment. We obviously can't give them the will to fight. But if we give them training, we give them equipment, and give them support and give them some time, I hope they will develop the will to fight because only if they fight can ISIL remain defeated.

(END VIDEO CLIP)

JONES: So there you have Secretary Carter telling the Iraqi forces to step up. You also, though, have Republicans both on Capitol Hill and out on the presidential campaign trail who are calling for U.S. ground troops in Iraq, 10,000 ground troops, they say, will be necessary to ensure the defeat of ISIS. Well, ground troops are not on the table -- Christine.

ROMANS: All right. Athena, thanks for that.

OK. That was the defense secretary talking about Ramadi in Iraq in particular. Overnight disturbing reports of rampaging ISIS fighters in Syria. Slaughtering government soldiers and civilians there. At least 400 people, many of them women and children, killed in the ancient city of Palmyra. According to Syrian state TV, the streets are littered with bodies, many of them beheaded.

[04:35:22] Let's get the latest from CNN's Ian Lee live from Cairo.

Just the worst fears of civilians and citizens in Palmyra are playing out.

IAN LEE, CNN CORRESPONDENT: That's right, Christine. And really when we watch ISIS advance anywhere in Iraq and Syria, we wait for the brutality to follow and we have seen thousands of people leave in front of their expansion. 11,000 people fled Palmyra ahead of ISIS' advance. But now they are going door-to-door looking for people who worked with the regime, who are sympathetic towards the regime, killing people.

Anyone who they find that they deem as a threat. And that does also include children. We are hearing of at least 11 children who have been executed by ISIS as well. We're hearing reports -- now all of this we cannot independently verify. But we are hearing it from different agencies. But that 600 people have been taken prisoner by ISIS, but if their past is any inclination of what is going to happen, these people will probably be executed as we have seen in other parts of Iraq and Syria. The reign of brutality expanding.

ROMANS: What are the plans to try to retake Palmyra? What is the regime saying?

LEE: Well, what we're hearing is that the regime is gathering forces to try to recapture the city. But as we've seen in other places, it isn't as easy. It's easier said than done. ISIS knows how to dig in, but regime forces have said that they are planning to do it, although they haven't given us the date and time.

Also interesting to point out that the leader of the Shia Lebanese militant and political organization, Hezbollah, Hassan Nasrallah, said that his forces are expanding and that they are fighting all over Syria. They support the Syrian government fighting against ISIS. Also against al Qaeda's affiliate in Syria, Al Nusra Front. But that also has implications, too, that it could spark wider sectarian -- a wider sectarian divide in Syria as it is a Shiite organization.

ROMANS: All right. Thanks so much for that, Ian Lee, this morning in Cairo for us. Thanks, Ian.

Secret talks in China between Afghanistan and the Taliban. The two- day meeting held last week orchestrated by Pakistan's intelligence agency. It was attended by Afghanistan's most prominent peace envoy and ex-Taliban officials. One diplomat called it talks about talks. The goal to get the warring parties to agree to a formal peace negotiation.

One week and counting until the NSA's bulk data collection program expires. The White House already assessing what the agency would do -- would be allowed to do if the law does expire or lapsed June 1st. Senate Majority Leader Mitch McConnell has already said he'll convene a session Sunday night, but it's unclear how legislation could be moved forward after being defeated in the chamber for the weekend.

Another Republican presidential hopeful coming out in favor of ending the NSA program. Former Arkansas Governor Mike Huckabee, now he suggests authorities should have to get a warrant if they want to listen in on Americans' phone calls. He argues the program hasn't been effective.

(BEGIN VIDEO CLIP)

MIKE HUCKABEE (R), FORMER ARKANSAS GOVERNOR: Two hundred and twenty- five different terrorist plot over the past year since 9/11, and so far, not one of them has been tied directly to the NSA's collection of metadata. So if this is so effective, how come it hasn't resulted in the foiled terrorist plots?

(END VIDEO CLIP)

ROMANS: The issue has divided the 2016 Republican field with several arguing for keeping the program or at least a modified version of it to fight terrorism.

The investigation into Hillary Clinton's e-mails dismissed as petty politics by a member of the president's cabinet. HUD Secretary Julian Castro calling out Republicans on CNN Sunday. He says they're wasting Americans' time.

(BEGIN VIDEO CLIP)

JULIAN CASTRO, HUD SECRETARY: You have here with these e-mails is basically a witch hunt. And, you know, Congressman Gowdy who is leading this is very intentionally trying to manipulate this witch hunt to play politics. That's unfortunate and it's one of the reasons that Congress has a 19 percent approval rating.

I think that we need to focus on more substantive things. As one who hasn't spent my lifetime in D.C., I know that out there in America, they care about, are you reducing veteran homelessness, are you providing the impetus for young people to be able to achieve their dreams? Are we making sure that America in this 21st century remains the undisputed land of opportunity? Not whether somebody had e-mails or didn't have them.

(END VIDEO CLIP)

[04:40:10] ROMANS: The first round of Clinton's e-mails was released Friday with no major developments. Thousands more are expected to be released by the State Department with no clear timetable for those release. Jeb Bush is getting new digs. The "Boston Globe" reports the likely

presidential candidate having a 3,000 square foot house built for his family at the Bush family compound in Kennebunkport, Maine. The Bush family has a long history in the area, of course. Jeb's four siblings already have homes there.

The nation pausing today to honor those who have fallen defending our country. President Obama marking this Memorial Day by laying a wreath at the Tomb of the Unknowns at Arlington Cemetery. Other top defense officials will pay respects in one of the newer sections of the cemetery, where many of those killed in Iraq and Afghanistan are buried.

If you took a road trip this weekend, you may have hit some traffic. 33 million Americans hit the roads between last Thursday and today according to AAA. That's up 5 percent from last year. The U.S. Travel Association says that translates into a $12.3 billion boost to the economy or about 330 bucks per person.

And about a quarter of the people who hit the road say the decision was influenced by cheap gas prices. The national average this morning, $2.74 a gallon. Now gas prices are climbing. They are up about a quarter in the last month. But gas is still almost $1 cheaper than last -- this time last year.

Record rainfall brings deadly flooding to Texas and Oklahoma. Thousands of people evacuated from their homes. Well, those storms are not over. New details ahead.

(COMMERCIAL BREAK)

[04:45:15] ROMANS: All right. Welcome back this Memorial Day. A deadly weekend of flooding, wow, in Texas and Oklahoma. The severe weather leaving three people dead. Several others are missing with hundreds forced to evacuate their homes. Now emergency crews still trying to get a handle on the scope of this devastation.

Our Alina Machado has more.

(BEGIN VIDEOTAPE)

ALINA MACHADO, CNN CORRESPONDENT: Christine, we've been to some of the hardest hit areas in Texas but nothing compares to what we're seeing here in Wimberley, Texas. We have seen houses that had been knocked off their foundations or tipped over, like this one over here, just by the sheer force of those rising flood waters.

We know that there are hundreds of homes that have been damaged or destroyed in this area. And the debris field here is quite extensive. You can see here, you can tell just how high those flood waters got just by the debris that's been stacked up right there against that tree. There's even a child's toy wrapped up in that debris.

I want to show you something else that we were told by the people who were here. You know, this all happened very quickly. A lot of them didn't even have time to react. Some people even had to ride out those rising flood waters in their homes in this area as all of this was happening.

There was a truck that normally parks right over there, right in front of where that jeep is turning. If you walk over here, look at it right over there, completely overturned, just resting, quite a ways away from where it normally is.

You know, there's no doubt that the clean-up effort here is going to take a very long time and it's going to require the help of many, many people, Christine.

(END VIDEOTAPE)

ROMANS: All right. Alina, thank you for that.

So what can Texas and Oklahoma expect today? Let's get to meteorologist Pedram Javaheri for an early look at your weather.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Hey, good morning, Christine. Yes, as you see with the video, the flooding certainly devastating for a lot of people. But for the farmers across this region, at least some of good piece of news to share with them because we know as of May 2014, the extreme, exceptional drought indicated in the dark reds and browns here at its peak. Really resembling what you would see in the state of California when it comes to the severity of the drought.

As of this week, that's literally all wiped away for a very expansive region including much of Oklahoma on into Kansas as well. So at least good news in that sense that the rainfall now pushing back the drought situation there. But the models unfortunately bring back another round of rainfall point to Dallas and northward by this afternoon. Areas around Austin and eventually east towards Houston as well. Tremendous rainfall possible.

Some models saying over the next couple of days, 4 to 6 inches east of Dallas on into Shreveport a possibility with two to four inches beyond that, into, say, Louisiana and Mississippi as well. So the rainfall certainly not done with just yet. In fact look at the river gauges. One gauge showing a rise here from just a couple of feet over 40 feet in some spots. So we're nearing 40 feet in some spots.

That is record territory for how quickly the water levels were on the increase over this region. But temperatures, pretty uniformed across the country generally into the 70s and 80s.

ROMANS: All right. Pedram, thank you for that.

The city of Cleveland on edge this morning. Protesters taking to the streets over the weekend after a police officer was acquitted of manslaughter charges in the shooting death of two unarmed suspects. Authorities able to keep the protests mostly peaceful for now.

Let's get more this morning from CNN's Nick Valencia.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN CORRESPONDENT: Christine, with an NBA playoff game in the city on Sunday night, Cleveland officials were worried that things could get out of hand. But the biggest demonstrations were held on Saturday, and even those were on a very small scale. Protesters upset that a local police officer was acquitted of two voluntary manslaughter charges and a fatal shooting in 2012.

Earlier civil rights leaders in the city spoke to the public, asking them to keep the peace.

UNIDENTIFIED MALE: This is Cleveland. Not Baltimore. Not Ferguson.

VALENCIA: With the Memorial Day holiday on Monday, there are no major demonstrations planned. City officials hope that things remain calm here in the city of Cleveland -- Christine.

(END VIDEOTAPE)

ROMANS: All right, Nick, thank you.

In California, about 20,000 gallons of oil has been cleaned up from that devastating spill along the California coast. But about 80,000 gallons remain in the water nearly a week after that accident in Santa Barbara. Now officials with Plains All American Pipeline LP, they say crews will start extracting the broken section of pipes from the ground. After those crews finish draining the oil still inside.

Dozens of protesters took to the streets Sunday along the beach in Santa Barbara demanding an end to fracking and other forms of oil extraction. They were pressing authorities to rule out using dangerous chemicals to clean up that spill.

Happening now, an intense search for thousands of migrants abandoned at sea by human traffickers. The Pope now weighing in on that crisis. That's next.

[04:49:53]

(COMMERCIAL BREAK)

ROMANS: Welcome back. This morning, a powerful earthquake rocking central Tokyo overnight causing the temporary suspension of some bullet trains, shutting down runways at airports. At this hour there are no reports of significant damage from the magnitude 5.6 quake.

The search for thousands of migrants abandoned at sea is intensifying this morning. Indonesia's armed forces joining the mission which began Saturday morning. Thousands are stranded in the Indian Ocean with dwindling supplies. They were abandoned by human traffickers after trying to buy passage to other Southeast Asian countries. The Pope speaking out about the ordeal urging the international community to help.

A milestone for Ireland. In a landslide, the country voted to legalize same-sex marriage. It's the first country to do so by a popular vote. Ireland once deeply conservative voted 2 to 1 in favor of changing its constitution to define marriage as a union between two people regardless of their sex. An international group of 30 female activists has crossed the heavily

guarded Korean border calling for peace. At the helm, well-known American feminist Gloria Steinem. The group crossed near the demilitarized zone after promoting women's rights in North Korea. The activists have planned to walk across the border. They were forced by South Korean officials, though, to take a bus instead.

All right. There is still time to nab some Memorial Day deals. I'm going to tell you what to buy and what to avoid next.

[04:54:58]

(COMMERCIAL BREAK)

ROMANS: Good morning. I'm Christine Romans. Let's get an EARLY START on your money this morning.

The stock market closed of course for Memorial Day. Just a happy reminder. Stocks are in record territory. The Dow was up 2.3 percent this year. The Nasdaq and the S&P 500 doing even better.

So what could trip up this market -- bull market? An interest rate hike is coming. In a speech Friday, Fed chair Janet Yellen says we can expect a hike before the end of the year despite weak economic growth and stagnant wages. She's worried that a waiting before those hit their targets would risk overheating the economy. European storks, the markets that are open in Europe are lower right now.

2016 presidential hopefuls are already promising us the world, but Stephen Dubner, the author of "Freakenomics" says their incentives are all wrong. Right now he says politicians focus on raising money and getting elected instead of serious long-term problems. His solution, we should pay them more.

(BEGIN VIDEO CLIP)

STEPHEN DUBNER, AUTHOR, "WHEN TO ROB A BANK": If Arne Duncan, the secretary of education, could really raise U.S. test scores by 10 percent in 10 years, we write a big fat check to Arne Duncan and the 100 people working with him.

ROMANS: Yes.

DUBNER: Because that's the way the world works. Right?

(END VIDEO CLIP)

ROMANS: Interesting. Dubner also would like to pay teachers more based on performance.

Speaking about buying a new car, today may be the day to get serious, folks. There are a wide range of zero percent financing deals out there. And this weekend may be one of your last chances to take advantage of them. Toyota Camry and RAV 4 and Nissan Rove, Chevy Bolt, Ford Escape, there are also good lease deals from Buick, Honda, Jeep and Volkswagen. Some things not to buy today, electronics and tools. Retailers will

give better deals on those closer to Father's Day. You'll also have to wait for swim wear and video games. Those go on sale at the end of the summer.

[05:00:09] EARLY START continues right now.