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Early Start with John Berman and Zoraida Sambolin

"The Interview" NYC Premiere Canceled; 145 Dead in Attack on Pakistani School; New Information on Sydney Gunman; Gas Prices Plunge

Aired December 17, 2014 - 05:30   ET

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

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JOHN BERMAN, CNN ANCHOR: Movie theaters threatened with terror overnight and some chains, they just pulled the plug on Sony's new film "The Interview" that after hackers promised violence for those who show the surprisingly controversial new movie.

And this morning, all eyes are on North Korea, as Sony is hit with new leaks and now new lawsuits. We have live coverage ahead.

Pakistan school massacre. That country reeling after Taliban terrorists stormed the school, killed nearly 150 people murdered so many children. Those tragic funerals begin this morning. We're live in Pakistan with new developments there.

And history of violence, new information about the gunman behind the deadly terror attack in Sydney. As we learn more about the hostage who died trying to take down the terrorist. We're live in Sydney with the latest developments there.

Welcome back to EARLY START, everyone. I'm John Berman. It's 31 minutes past the hour. Christine Romans is off this morning.

Overnight, the New York City premiere of "The Interview" was cancelled, called off. That after hackers threatened a September 11- style attack on moviegoers.

Sony Pictures is now telling movie theater owners that they can cancel future screenings at their discretion. The FBI is investigating the threats.

The film's two stars, Seth Rogen and James Franco have cancelled all press events. "The Interview" is still set to be released on Christmas Day, but the implications of this are simply staggering.

Brian Stelter, CNN's senior media correspondent joins me now. Brian, the premiere here in New York City cancelled. We have implications in Washington where the FBI is investigating. Hollywood is reeling after all of these e-mail leaks.

In the corporate headquarters in Japan, Sony is dealing with lawsuits now by many of its employees, just wow.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: I'm surprised actually that we learned overnight that the New York premiere has been scrapped because there was an L.A. premiere that went forward last week.

The difference is there was a message from the hackers yesterday invoking 9/11 seeming to threaten movie theaters. I think to me and a lot of other people it's an absurd sort of threat to imagine that a digital attack that's happened.

They hacking could become a physical attack. That seems preposterous, but it does have to be taken seriously.

BERMAN: So this was not Sony that cancelled the premiere, it was the movie theater chain, correct?

STELTER: And Sony is telling other theater owners, we understand if you decide to pull the movie out of your theaters next week. I think now Sony is serious at looking at digital releases of the movie.

Could they let you buy it at home on Christmas day instead of having it in theaters? The question then becomes would any of those digital distributors also be concerned about being involved with the film.

BERMAN: The theater distributor, Landmark Theaters, right?

STELTER: That's where the premiere -- it was going to be tomorrow.

BERMAN: Any comment about why they made this movie?

STELTER: No comment why. I think what we will see today is other theater owners we'll see make these had similar decisions. They made commitments months ago to run this movie.

This has profound freedom of speech issues here, profound freedom of impression here. Are we really going to let foreign hackers decide what American films can be played in American theaters?

BERMAN: By the way, I don't think anyone is saying this is a great movie. In fact, the reviews have been mixed at best.

STELTER: No, mixed at best. This is a funny movie -- well, a funny movie, it's also a funny moment, talking about freedom of speech around a plot line of assassinating the North Korean president.

BERMAN: But no sign that Sony will pressure theaters to keep this open. Because if you back down here, if you back down on this film, what does it mean for the future for hackers for people who want to cause mischief?

STELTER: I think this is where we're going with this. That's what Sony executives are saying privately. This is a film that has a North Korean plot line, but what plot lines in other countries. They may not like what they see in American films. There's a real issue here about self-censorship in the future.

BERMAN: I've got to say, I'm surprised by --

STELTER: I didn't think we'd be here about this movie? BERMAN: What about Seth Rogen at this point? What about James Franco, they were doing interviews -- I supposed now they've cancelled. I've read an interview in the "New York Times" this morning. It was already done. But where are they now?

STELTER: I think they're in a position they dreaded being in. They have a feeling this would be a controversial movie. There were lots of preparations at Sony about making sure everybody was comfortable with it.

As it's been reported Seth Rogen do not like the fact that Sony toned down some of the finale scenes to make it the ending more palatable. But as you said, they've done a lot of interviews up until now, now the rest of press store seems to have been scrapped.

They were going to have an onstage at Buzzfeed yesterday. Buzzfeed just decided to open it up the bar to their staffers because Seth Rogen and James Franco couldn't come anymore.

BERMAN: You know, controversy is a strange thing in Hollywood. Sometimes it hurts. Sometimes it helps. Where do you think this puts Seth Rogen and James France going forward?

STELTER: I don't think it hurts their careers, but I think it will definitely hurt Sony financially. It's a movie that cost more than $40 million to make. It was expected to make at least $20 million in its opening weekend.

If this is not in theaters on Christmas day, then Sony takes an additional hit on top of all of other hits it's taken because of all the costs of the hacking itself.

That's why they're trying to release it on demand on Christmas day, but I'm not sure how many people actually want to sit at home and watch this movie on Christmas day.

BERMAN: You there go, the big surprise, once again, it's become this international issue with so many implications.

STELTER: And all the other studios that have films on Christmas day have to be concerned because they don't want people to be afraid to go to the movie theaters on Christmas day. This is not a physical threat. The FBI has been clear about that, but there's a chilling effect that comes over all of Hollywood.

BERMAN: It's hard enough to get people in movie theater seats right now anyway. Brian Stelter, great to have you here with us. Really appreciate it.

As we said, one of the most staggering factors about this is the international implications now of this film, this mediocre comedy. Sony Pictures parent company is headquartered in Japan, a country, of course, that had a long tense relationship with North Korea.

The release of "The Interview" has really only increased the friction between North Korea and Japan. North Korea has called the film an act of war.

CNN's Will Ripley joins us now live from Tokyo. And Will, you know, you have learned new information about how this film was approved in the first place.

WILL RIPLEY, CNN CORRESPONDENT: Yes, well, there was certainly, according to these e-mails and what we're learning there was increasing discomfort among top-level Sony executives about the content of this film.

And you can bet there are going to be serious questions raised here on out about how much of a role Sony here in Tokyo should play when it comes to its subsidiary in America, Sony Pictures Entertainment.

Seth Rogen with all due respect may not be completely familiar with the geopolitical issues, the tension between Japan and North Korea, a tension that has been simmering for decades as we've talked about.

We know that the Sony Entertainment CEO consulted a probably concern, a think tank, Rand Corporation. He's on the board of that corporation and he asked one of the Korean experts to take a look at the film and write up some of his thoughts.

And experts that I'm talking to here said it's pretty clear this film would not be well received by Asian audiences so commercially, it wouldn't be a success and certainly the potential consequences politically are really significant -- John.

BERMAN: Will Ripley for us in Tokyo. Thanks for being part of this surprising large discussion on this film. Appreciate it.

It's 38 minutes after the hour. This morning, the funerals have begun in Pakistan for the 145 people murdered in the horrific attack by Taliban gunman. That number includes 132 students, children, under the age of 16, who died in this barbaric attack.

CNN's Michelle Stockman is live for us in Islamabad with the latest. Good morning, Michelle.

MICHELLE STOCKMAN, CNN INTERNATIONAL CORRESPONDENT: Good morning. We're having more details come out about what exactly occurred within the school during the attack. We have testimony from a 15-year-old boy who says he was sitting in a classroom when four gunmen dressed in black uniforms burst in.

They were speaking with each other saying, kill as many as you can. He fell down on the ground, bullets whizzed past his head. And then he was shot from outside the classroom.

Another testimony from a teacher who was injured isn't the attack said that he heard gunfire, he ordered children in his classroom to get under the benches. Gunmen burst in.

They lured the children from under the benches saying they were safe and then shot many of them so this was just a deplorable attack aimed to kill and to inflict as up carnage as possible. The prime minister has addressed the nation. He has announced that there's a moratorium to the death penalty near Pakistan in response to this attack, that happened relates to terrorism cases.

Now, will that have a deterring effect? It's unlikely as the Taliban modus operandi is to kill. They've stated they're willing to die and to inflict as much damage as they can in the process.

We're still waiting to find out exactly the details of who are behind this attack. But the military chief has gone to Afghanistan to find out more details, perhaps, that this attack was launched from within Afghanistan.

So, this response would be an international joint response if that can be arranged between the two countries.

BERMAN: Yes, the words cannot express the level of depravity here. Michelle Stockman for us in Islamabad. Thanks so much.

It's 40 minutes after the hour, breaking overnight, President Obama signed a huge $1.1 trillion spending bill that will keep the federal government operating for the next nine months.

The measure does roll back some regulations on banks, but keeps Obamacare funded for the length of the deal. The Department of Homeland Security will only be funded through February. This sets up a showdown over the president's executive action on immigration.

Let's get an EARLY STAR" on "Your Money" this morning. Cristina Alesci joins us. Good morning.

CRISTINA ALESCI, CNN MONEY CORRESPONDENT: Good morning. Cheap oil is the headline story here.

BERMAN: I'll say.

ALESCI: It is freaking the market out. Right now, U.S. futures are up, but who knows what will happen in this wild market. Take yesterday it was a very volatile day. The Dow closed down 112 points and now down a record 5 percent from the record high in December 5th and it's dropped for the past six of the past trading days.

Investors and traders are looking at a few key factors this morning, one, Russia's economy is in dire trouble and its currency, the ruble is plunging against the dollar.

Two, the Federal Reserve may tweak its language and hint at an interest rate hike later today. And three, of course, is oil. Crude oil is at $55 a barrel. That's a five-year low and down almost 50 percent from the summer peak. That's causing big concerns about growth around the world.

BERMAN: Great news for consumers, Cristina Alesci, thanks so much. Appreciate it.

We have new information about the gunman around a deadly terror attack at a Sydney cafe. That as the Australian prime minister speaks out with a new promise for his country. We're live in Sydney next.

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BERMAN: New information this morning about the terror attack in Sydney, the gunman who sieged of this cafe led to the deaths of two people. There are reports, some reports that he had a gun license and also had fallen off a government security watch list.

That's the word from Australia's prime minister who is vowing to find out how and why this happened. He held a news conference overnight. Listen.

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TONY ABBOTT, BRITISH PRIME MINISTER: I will not rest until I am confident that you are as safe as any government can possibly make you.

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BERMAN: Prime Minister Tony Abbott of Australia. Let's go now live to Sydney for the very latest. CNN's Andrew Stevens is there. Good morning, Andrew.

ANDREW STEVENS, CNN CORRESPONDENT: Good morning, John. Yes, Tony Abbott has made it a real key policy of his administration to increase the anti-terror legislation here in Australia, now among the toughest in the world.

And yet, a man who is known to have extremist views, a man who has several serious criminal charges against him, and a man who may or may not have legally had access to a gun it able to walk the streets of Sydney with a shotgun and take hostages for 16 hours and then the death of two hostages.

So Tony Abbott wants answers to those questions as indeed does the rest of Australia. With these tough anti-terrorism laws, how can this happen? So this investigation is going to be wrapped up by early next year. And the conclusions there will make some very interesting and perhaps disturbing reading, John.

I just want to show you, too, where I am at the moment. This is central Sydney. I'll just stand out of the shot for the moment. It's 9:30 in the evening here and just take a look at that sea of flowers there.

Sydney people have been coming here in the thousands all day, to pay their condolences to show their solidarity. And in that sea of flowers there's a hand-drawn card that says I love you mommy.

That was a picture earlier in the day and that card was written by the daughter of Katrina Dawson, the parent of, mother of three of children, who was one of the victims of the hostage siege, incredibly sad, incredibly poignant.

A lot of family members have been coming down here to be with the people of Sydney. They're not talking to the media at the moment. In fact, very few people are talking to the media, only one person, an 83-year-old, a man the first to escape into the clutches of hostages.

He ran into the arms of security officers about four hours in the siege. He gave a brief statement just saying how unbelievably pleased he was to be alive and sharing his grief with those who didn't make it out so very poignant scenes, sad scenes here in Sydney.

The line, the queue now has thinned out a lot, John. This will continue for another day at least, as more and more Sydney people come to show the solidarity there.

BERMAN: It's heartbreaking to see some of those notes, Andrew, but it's important for the city to show its grief and strength together. Thanks so much.

Let's take a look at what's coming up on "NEW DAY." Alisyn Camerota joins us.

ALISYN CAMEROTA, CNN ANCHOR, "NEW DAY": Good morning. We're following that big development overnight in the Sony hacking story. A major theater chain decides not to run the controversial new movie. And the New York premiere of that film called "The Interview" has been cancelled after hackers threaten to attack moviegoers. How serious is this let? I'll tell you what you need to know.

And Pakistan is preparing for the grim task of burying the victims of that horrible massacre. That claimed the lives of more than 132 children. This is the worst attack in Pakistan. What will change today as a result?

We're talking exclusively with the former president of Pakistan, Pervez Musharraf. Stay tuned for that and we'll see you at the top of the hour.

BERMAN: Let me give a shameless plug here. What Alisyn Camerota is doing on Facebook is awesome. Check it out. It's highly, highly entertaining.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": What's she doing on Facebook?

CAMEROTA: I'll tell you later.

BERMAN: She'll tale you later. You're on a need-to-know basis, Cuomo.

Bill Cosby, one prosecutor says he will not prosecute, will not file sexual assault charges. This coming as his daughter breaks her silence. That's next.

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BERMAN: Prosecutors in Los Angeles will not file child sex abuse charges against Bill Cosby. That decision comes ten days after alleged victim Judy Huth met with Los Angeles police detectives. She filed a civil suit against Cosby, claiming that he forced her to perform a sex act on him in 1974 when she was just 15 years old.

Cosby's attorneys claim that Huth tried extorted $250,000 before filing the suit. Cosby's daughter, Evin is publicly defending her father releasing a statement to access Hollywood that reads "he is the father you thought you knew. "The Cosby Show" is my today's reality show. Thank you. That's all I would like to say.

An update to the death of Joan Rivers, a federal clinic said that the clinic that it faces and accept only and lengthy plain to uncover problems in the investigation. Agency found a series of events like not keeping proper medication and snapping cell phone pictures of rivers while unconscious.

Of and also that clinic failed to get informed consent for ever procedure performed and failed to record rivers' weight before using medication. Rivers' daughter Melissa said she's outraged by the report's findings. She's hired an attorney.

And NFL players will be treated under a program designed for veterans. It's at the center in Ann Arbor, Michigan and provides intense treatment for concussion and mile traumatic brain injury. The NFL says it expects that 28% of its retired players will suffer from at least some form of mild dementia someday, including perhaps even Alzheimer's disease.

It's 53 minutes after the hour. Gas prices are tumbling but what's good news for us, for consumers, is causing huge turmoil in the markets. We have an EARLY START on "your money" next.

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BERMAN: The music means that it's time for an early start on "Your Money." Cristina Alesci is here. What are the futures doing right now?

ALESCI: It looks like actually it's going to be a good open. The futures are up right now but who knows in this wild market. Take yesterday, it was a volatile day. The Dow closed down 112 points and has dropped for six of the past seven trading days.

Today, investors are watching the Federal Reserve very closely for any hints on a time line to hike interest rates. Of course, this would mean paying more on your car and home loans.

And we're also keeping an eye on crude oil, $55 a barrel. Right now, that's a five-year low, down almost 50 percent for the summer peak. This is a nightmare for energy producers especially the smaller ones by great for drivers.

The national average for a gallon of regular is $2.51 today. That price keeps ticking down each day, putting an extra $100 in the typical family's pocket. It's almost like a --

BERMAN: Christmas bonus.

ALESCI: Totally, totally. What are you going to do with that extra hundred bucks?

BERMAN: Spend it on myself.

ALESCI: Some running gear maybe.

BERMAN: Cristina Alesci, thank you for being with us.

That is all for us. "NEW DAY" covering the big stories including Sony with the news, that film, the New York premiere was canceled. "NEW DAY" starts right now.