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Early Start with John Berman and Zoraida Sambolin

State of the Union: The President's New Agenda; Tracking Paris Terror Attackers; Heavy Fighting in Eastern Ukraine

Aired January 21, 2015 - 04:00   ET

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

CHRISTINE ROMANS, CNN ANCHOR: President Obama defiantly pushing his agenda in the State of the Union Address, proposing free community college, higher taxes for the wealthy and promising to veto bills that dismantle his executive actions.

We're breaking down the big moments, and the response they're generating this morning.

Good morning. Welcome to EARLY START. I'm Christine Romans.

JOHN BERMAN, CNN ANCHOR: And I'm John Berman. Great to see you. It is Wednesday, January 21st, 4:00 a.m. in the East.

President Obama, he struck a confident tune last night, seemingly undaunted as he gave his first State of the Union Address to an entirely Republican-controlled Congress. The president put forward the agenda of an economic populous, really, aimed at ensuring the middle class enjoys the fruits of economic recovery.

Senior White House correspondent Jim Acosta has details.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John and Christine, this was not a speech from a president who sees himself as a lame duck. In the State of the Union Address, President Obama came out and declared the nation's economy is on the rise. But he also offered up his prescription for lifting up the middle class, raising taxes and fees on the wealthy and big banks in exchange for new tax breaks or middle income earners.

Now, as part of the middle class economics scheme, the president also talked about free community college, but he also covered other subjects. He asked lawmakers to give him a vote to authorize force on ISIS. He called on Congress to lift the embargo on Cuba, slammed the Keystone pipeline, vowed to veto Iran's legislation.

But he also called on the country for a better kind of politics at this turning point of the presidency away from 9/11 and the financial crisis, and towards the future. Here's what the president had to say.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Fifteen years into this new century, we have picked ourselves up, dusted ourselves off, and begun again the work of remaking America. We have laid a new foundation. A brighter future is ours to write. Let's begin this new chapter together. And let's start to work right now.

ACOSTA: The president will take his message to Idaho later today, and then Kansas on Thursday. Those are both red states. But a Democratic source tells me the president will be visiting more red states in the coming months. He wants to engage Americans who don't agree with him to sell his agenda. And also coming soon, the president's budget, which includes that tax plan one Republicans have already deemed dead on arrival -- John and Christine.

(END VIDEOTAPE)

ROMANS: All right, Jim Acosta.

And, of course, the Republicans took a much dimmer view of the economy on their rebuttal following the president's speech. Freshman Iowa Senator Joni Ernst spoke of stagnant wages and lost jobs, and the hurt caused by cancelled health care plans. And she seized on the mandate for change that Republicans believe they won in the November elections.

(BEGIN VIDEO CLIP)

SEN. JONI ERNST (R), IOWA: Americans have been hurting, but when we demanded solutions, too often, Washington responded with the same stale mindset that led to failed policies like Obamacare. It's a mindset that gave us political talking points, not serious solutions. That's why the new Republican majority you elected, started by reforming Congress, to make it function again. And now, we're working hard to pass the kind of serious, job creation ideas you deserve.

(END VIDEO CLIP)

BERMAN: Away from Capitol Hill, the president's speech got mixed reviews. The CNN instant poll found a generally favorable response. Fifty-one percent of Americans who watched the speech had a very positive reaction. That is up from last year. And significantly better than George W. Bush received at the same point in his presidency.

Political figures, many of whom are mulling White House bids for 2016 also weighed in, Hillary Clinton praised the speech saying, "It pointed the way to an economy that works for all." She added, "Now, we need to step up and deliver for the middle class."

On Facebook, Republican Jeb Bush praised Joni Ernst's rebuttal and advised the president to be mindful of the strong message American voters sent in November and work with the new Republican congressional majority.

ROMANS: The State of the Union was all about the middle class, of course. The state of the middle class. The president wants to make childcare more affordable. He's proposing a $500 tax credit for couples who both worked. Those couple who make up to $120,000 a year. He also wants to triple the child care tax credit to $3,000. The president also pushed changes to education.

(BEGIN VIDEO CLIP)

OBAMA: By the end of this decade, two and three job openings will require some higher education, two and three. And yet, we still live in a country where too many bright striving Americans are priced out of the education they need. It's not fair to them. And it's sure not smart for our future.

(END VIDEO CLIP)

ROMANS: He's proposing free community college for millions and wants to eliminate the benefits of 529 savings plans. That's part in an attempt to streamline all the education tax breaks and target students who need the most help.

So, how is he going to pay for all this, raising the capital gains tax, from 20 percent to 28 percent? That takes it back to Reagan era level, eliminating the so-called trust fund loophole that lets wealthy Americans pass on assets tax free and by new taxes on megabanks. That's the plan. Can it pass? Republicans say, no way. They say the proposed tax changes are not serious.

BERMAN: I don't think it's about passing, that's the thing. I think it's about reframing a debate to be about the middle class.

ROMANS: Absolutely. The president's had a hard time finding where that sweet spot is. The economy getting better but wages have been stagnant. This is the president saying I'm for the middle class and we have to figure how to make sure the economic recovery is shared by everyone.

BERMAN: It's also saying, look at the numbers, look at this news, let's feel good about it. And for the first time, some Americans, more Americans seem to agree with him on that. So, it will be interesting to see how it plays.

Social media was buzzing about the speech, many of them. Many of people on -- well, a lot of people took to social media, Twitter and Facebook to talk about it. One particular part of the speech went viral. Let look.

(BEGIN VIDEO CLIP)

OBAMA: I have no more campaigns to run. My only agenda -- I know, because I won both of them.

(END VIDEO CLIP)

BERMAN: Look, I actually think that was the moment of the speech and the one that we'll remember. He said, "I have no more campaigns to run." There was a pause, Republicans cheered, and then the president interjected, it wasn't scripted. Had he planned it? We don't know. But he then say, "Because I won both of them", which, you know, it was a confident President Obama who took to the stage last night, or at least that was the tone he wanted to project.

ROMANS: It will be interesting to see if this congress will be able to find some bipartisan job creation stuff that they do some stuff this year, and it's not just no, no, no. Because there are some parts of the proposal that Republicans have been on board with before. Everyone wants to create jobs for the middle class, everyone wants to create some relief for the middle class, can they figure out?

BERMAN: Usually this time, though, the president with a veto pen may be the one technically who was saying, no, no, no. The Congress maybe passing things and the president vetoes it.

ROMANS: Right. Turning the tables.

All right. Republicans did stand up to cheer the president a few points, notably when he invoked America's fight against global terror.

(BEGIN VIDEO CLIP)

OBAMA: We stand united with people around the world who've been targeted by terrorists, from a school in Pakistan to the streets of Paris.

(APPLAUSE)

We will continue to hunt down terrorists and dismantle their networks and we reserve the right to act unilaterally as we have done relentlessly since I took office to take out terrorists who pose a direct threat to us and our allies.

(END VIDEO CLIP)

ROMANS: President Obama gave much the same support to French President Hollande in a phone conversation earlier in the day.

Later today, the French prime minister set to outline new anti- terrorism measures at a news conference in Paris. All this as investigators in Paris pore over new surveillance video obtained exclusively by CNN. It appears to show the Paris gunman Amedy Coulibaly and his partner Hayat Boumeddiene as they case a Jewish institution in Paris.

Let's turn to senior international correspondent Nic Robertson live in Paris, with the latest on this investigation.

Good morning, Nic.

And it's just chilling to look at that video.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, Christine. One of the things you notice about that video is the way that Hayat Boumeddiene is dressed. It's very sort of scanty clothing there. The idea, of course, that they were not trying to portrait their Islamist-leaning. So, they wanted to blend in and look like another couple out on the streets, while in the meantime planning acts of terrorism. We're also learning details from the prosecutor this morning. He said

they have made good progress in the investigation against Coulibaly. But what they're saying is very, very interesting.

The prosecutor giving the first name of the four people who are still being held. He said that one was called Willie, one Kristof, one Torino, the other Michael. None of these are Muslim names. He said that these -- that three of the four men were associated with Coulibaly when he was buying the car that was used to drive him to the kosher supermarket.

They're also involved in buying weapons. So, DNA, the other one, Michael, the fourth one, found on item of clothing, at the crime scene, the police say.

So, the impression created here is that Coulibaly was drawing on support perhaps criminal elements. Three of them had criminal records, according to the prosecutor, rather than other people moving in as Islamists circles here -- Christine.

ROMANS: Really interesting to see that video.

All right. Nic Robertson, thanks so much for that this morning, Nic.

BERMAN: Happening now in Belgium, the country's public prosecutor is getting set to address a police operation Tuesday very close to the border with France. So far, officials have only said that 82 people were evacuated from 33 apartments and the operation went calmly. No comment yet on whether this was a terror-related operation as suspected.

Officials are searching for Abdelhamid Abaaoud, the suspected ring leader of the ISIS-linked Belgian terror cell. CNN has obtained a tape of Abaaoud defending his tactics. Listen.

(BEGIN VIDEO CLIP)

ABELHAMID ABAAOUD, SUSPECTED RINGLEADER: It's not fun seeing blood spilled, but it gives me pleasure from time to time to see blood of the disbelievers run because we grew up watching, we've grown up, seeing on TV, in the whole world the blood of Muslims being spilled.

(END VIDEO CLIP)

BERMAN: He calls on Muslims to find honor through jihad and martyrdom.

ROMANS: Now to Yemen where Shiite Houthi rebels have successfully staged a coup that have overtaken the presidential palace in Sana'a. Yemen's minister of information telling our Nick Paton Walsh the president is no longer in control in Yemen. There are concerns that a government collapse could send the country into a full-scale civil war, a turn of events that could be exploited by radical groups like al Qaeda.

There are also growing concerns about U.S. interest there. A U.S. embassy vehicle was shot near an embassy checkpoint Monday night. Two warships have moved into the Red Sea. They are ready to evacuate Americans from the U.S. embassy if need be.

BERMAN: Breaking overnight, a Palestinian man has been arrested after nine people were stabbed on a bus in Tel Aviv. Israeli police are calling this a terror attack. The attacker was eventually chased down, shot by police and arrested. This is the latest in the string of attacks against the Israelis in recent months. Several of them have been deadly. The Islamic group Hamas, which controls Gaza, praised the stabbings as brave and heroic.

Eleven minutes after the hour.

Happening now: Japan working to free hostages held by ISIS. But will it pay? Will Japan pay the $200 million ransom? We're live with the latest developments next.

(COMMERCIAL BREAK)

ROMANS: Welcome back.

President Obama once again urging Congress to end the U.S. trade embargo against Cuba. In last night's State of the Union Address, the president touted the executive actions he's had already taken to normalize relations with Cuba, urging Congress to finish the job. And he acknowledged the presence of government contractor Alan Gross freed as part of that deal with Cuba.

(BEGIN VIDEO CLIP)

OBAMA: As his Holiness Pope Francis has said, diplomacy is the work of small steps. These small steps have added up to new hope for the future in Cuba. After years in prison, we are overjoyed that Alan Gross is back where he belongs.

Welcome home, Alan. We're glad you're here.

(END VIDEO CLIP)

ROMANS: Historic talks on restoring full diplomatic relations between the U.S. and Cuba are set to begin today in Havana. On Cuba's list of demands, before restoring relations, it wants to be removed from the U.S. list of states sponsors of terror.

BERMAN: Right now, the Japanese government is using every diplomatic channel available to make contact with ISIS and convince the extremist group not to execute two Japanese hostages. ISIS is demanding a $200 million ransom to spare these men's lives. It is not clear this morning whether Japan will pay this ransom, the $200 million, or a smaller sum.

Let's go to Will Ripley live on the ground in Tokyo, tracking the latest developments.

Good morning, Will. WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: John, we know that

Prime Minister Shinzo Abe is now back in Tokyo. He just landed and gave a brief statement to reporters about 10 minutes ago, where he reiterated that the Japanese government will not back down to the demands of ISIS.

But when asked and pressed as to whether Japan would be willing to negotiate or willing to pay some sort of ransom to secure the release of these two men, there's still no definitive answer. Unlike America and Britain, Japan is a bit more soft on the issue of paying ransom in exchange for citizens, although no ransom has ever officially been paid. So, that's something that we will continue to watch unfold here in the coming hours.

I've also been talking today, John, since arriving back here in Japan, with people who knew these two men, Kenji Goto and Haruna Yukawa, and I just spoke with one of Goto's good friends, and we spoke with a good friend of Yukawa's, who corroborated a story that the two men actually met each other in Syria less than a year ago. Seasoned freelance journalist was giving Yukawa, relatively new to the Middle East, tips about how to survive in these rough developments.

And what the friends believe is that Goto felt responsible for the fact that Yukawa took his advice, went back to the Mideast and was captured. And there's belief here in Japan that Goto actually went back, putting his own life in danger to see if he could find Yukawa and somehow help him.

And now these two men, John, are appearing in this ISIS video and the clock, as you know, is ticking.

BERMAN: What a tragedy for them. What a tragedy for the families. And what a horrific offense by the men holding them.

Will Ripley for us in Tokyo, thanks so much.

ROMANS: FOX News could face legal action over its coverage suggesting parts of Paris are off limits to non-Muslims. The Paris mayor Anne Hidalgo says the network insulted the city. She insists that so- called Muslim no-go zones do not exist. The mayor tells them that she plans to sue for the prejudice and the honor and image of Paris. Fox has repeatedly apologized.

BERMAN: Louisiana Governor Bobby Jindal, though, is doubling down on his contention that some Western countries have allowed Muslims to establish autonomous no-go zone neighborhoods in cities where Islamic traditions trumped regular laws. Some see this as part of a political strategy in an effort to make Jindal stand out from a crowded field of potential candidates for 2016 and the Republican nominations.

ROMANS: A team of senior FBI agents will lead the federal civil rights investigation into the police chokehold death of Eric Garner in New York. Garner was unarmed when he died at the hands of police officers last summer.

In December, a grand jury decided not to indict a white officer, Daniel Pantaleo, in Garner's death. The incident sparked a wave of anti-police demonstrations across the country. Authorities say the goal is to take a fresh look at the Garner case.

BERMAN: Light snow in the Northern Plains and Great Lakes. Let's turn now to meteorologist Pedram Javaheri for an early look at the forecast.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Good morning.

Let's show you what's happening across the Northeast with snow showers in your forecast, from Philly, to Baltimore, in Washington, one to three inches, mainly into the afternoon hours, say, around 2:00 p.m., beginning to see some moderate snow showers, could really culminate by 10:00 or 11:00 p.m. across that region. And again, another clipper system pushes into Thursday afternoon and evening. So, some light flurries possible with it.

Not a major snowstorm, but could be a possibility that could slow you down in you're traveling across that area. The Southeast, the best place for this weather is concerned, mild conditions, above average temperatures for Atlanta, to Charleston, even eventually down to New Orleans and Houston, mid-60s after some morning fog across that region. While the Great Lakes starting you in the upper 20s and low 30s.

Now, it's cold enough here to support a few flurries. But again, accumulation is going to be on the lighter side, about one inch around Chicago, two inches around, says, Cleveland, some icy spots to go around south central of Ohio. So, it's something worth nothing.

But still, it looks like some snow showers headed for parts of the Northeast, areas from, let's say, Philly southward.

Let's send it back to you.

BERMAN: All right, Pedram. Thanks so much.

A potentially huge story this morning. An NFL investigation in so- called deflategate reportedly found that 11 of the 12 footballs used by the New England Patriots in Sunday's AFC championship game were under inflated by two pounds per square inch. That is a lot. It is significantly less than the league rules require.

If the ball is under-inflated, it could make it easier to grip, easier to throw. You know, the accusation is here that somehow the Patriots deflated the balls on purpose to give them an advantage. Tom Brady, maybe it was easier for him to throw to Gronkowski there, and easier for Gronkowski to catch it. The Patriots won 45-7. They're on their way to the Super Bowl.

There's been no comment officially from the NFL. According to ESPN, the league has not determined what if any penalties New England could face. We're talking about fines, we're talking about draft picks.

But look, this is the Super Bowl that they are headed to, if they did that deliberately, if they deflated those balls, it is cheating. So, there will be a team that cheats in the Super Bowl.

ROMANS: Question for you, John Berman, if you have it deflated by two pounds per square inch, can you feel that when you hold the ball? Will the players be able to say, hey, there's something wrong here?

BERMAN: Yes, the way they discovered this, apparently, was that when one of the Colts intercepted the ball by Tom Brady, when the Colts held that ball that the Patriots were using for the first time, it's like, whoa, there is not air in this ball.

ROMANS: And I did not know this, the Colts have their own balls --

BERMAN: Each team controls the balls that they use on offense. So, I think one of the question right now, is were the Colts' balls also as under-deflated? Was it environmental? I don't know.

It does not look good for my Patriots. I'm ashamed. Honestly, I'm ashamed.

ROMANS: We'll stay on top of that important story this morning.

Also happening now, fighting intensifying, the death toll rising in Eastern Ukraine. Russia accused of fuelling the fight. We're live in Moscow with the very latest this morning on that, next.

(COMMERCIAL BREAK)

BERMAN: The latest now in the AirAsia crash investigation. Indonesia's transportation minister confirms that Flight 8501 climbed at speeds more suitable for a fighter jet before plunging into the Java Sea. Six thousand feet per minute, that's about hour times the average climbing speed for a commercial jet. Aviation experts say that kind of ascent could trigger a stall.

ROMANS: Violence is flaring in Eastern Ukraine. Government forces coming under heavy fire from pro-Russian rebels. Ukraine's prime minister insisting these rebels are being helped by hundreds of Russian troops, Russian troops who have crossed their border. A charge for Russian defense ministry calls a hallucination.

Let's bring in Matthew Chance live from Moscow.

Well-worn argument here, Ukraine says Russia is involved with its troops. Russia says no way. But the violence flares.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, it does. And that's what we're seeing on the ground right now in Eastern Ukraine. Within the past few minutes, in fact, the Russian foreign minister Sergei Lavrov was again rejected those allegations coming from Ukraine in particular, but also NATO and the United States and others, that Russian troops have been crossing the border, Russian heavy weaponry has been crossing the border, saying that, look, we've heard this in the past, this is what he said. But we haven't seen any evidence for it. Give us the satellite photos. Show us the evidence.

And that's been the Russian argument all along and at the roots of these Russian denials. So, again, they're saying they got nothing to do with the violence but they're calling on the Ukrainians and the rebels as well, as a matter of fact, to pull back the heavy weaponry and to implement the ceasefire, Christine.

ROMANS: All right. Matthew Chance for us this morning in Moscow -- thank you, Matthew, for that.

BERMAN: All right. Twenty-six minutes after the hour right now.

President Obama pushing a new aggressive agenda in his State of the Union Address. That with the Republicans controlling both houses of Congress. What does that mean for is agenda, for the congressional agenda going forward? We'll break it all down, next.

(COMMERCIAL BREAK)