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Early Start with John Berman and Zoraida Sambolin

Benjamin Netanyahu Claims Victory; Air Force Accused of Trying to Join ISIS; Republicans Unveil 2016 Budget; 1st Anniversary of Crimea Annexation. Aired 4-4:30a ET

Aired March 18, 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: Happening now, Israel Prime Minister Benjamin Netanyahu claiming victory in a tight election that reveals a deeply divided Israel.

[04:00:25] We're live with what comes next.

JOHN BERMAN, CNN ANCHOR: In just hours, a U.S. Air Force veteran due in court accused of trying to join ISIS in Syria. We have new details on that case, coming up.

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

ROMANS: And I'm Christine Romans. It is Wednesday, March 18th. It is 4:00 a.m. in the East.

We begin with breaking news overnight, a resounding re-election victory for Israel's prime minister. With 99 percent of precincts counted, Benjamin Netanyahu has a five-seat edge over his opponent, Zionist Union leader Isaac Herzog in Israel's parliament. Now, Herzog phoning Netanyahu to offer his congratulations.

Last night, Netanyahu gave a victory speech, exalting in a comeback after earlier opinion polls put him four seats behind. But many observers are saying he faces a serious challenge reuniting that nation after a harsh election campaign.

We're turning now to CNN's Oren Liebermann, standing by live in Jerusalem with the latest.

Good morning, Oren.

OREN LIEBERMANN, CNN REPORTER: Good morning, Christine.

Netanyahu was a polarizing figure. He will still be a polarizing figure now. And he's very much split the Israeli public. What's clear though is he has an easier path to a right-wing coalition government than we expected. Up until the last couple weeks, this really looked to be a very close. Even in the last couple weeks, with the polls right before the election and an exit polls, Netanyahu's Likud Party looked to be neck and neck with his main challenger, Isaac Herzog of the Zionist Union. They were polling right around 27 seats apiece. And then we saw the unofficial results, not election polls, not exit

polls, but actual results in the ballot boxes, and that's where Netanyahu's Likud Party really opened up a gap, a five-seat lead, which gives him a much easier path than we expected to create a right wing government.

If everything played out as the exit polls expected, Netanyahu had an edge, but it was a slight edge. Now, it looks like he has a much easier path to creating that coalition government. He declared victory last night. And it looks like he has that victory. Israeli reports here and some reports saying that Isaac Herzog has called Benjamin Netanyahu to congratulate him.

So, what comes next? Next, now, it's up to Benjamin Netanyahu to create that coalition government. He has the 29 seats, according to the numbers, the unofficial numbers we're seeing right now.

Now, it will be up to him to create that government. It looks like it will be a bit more to the right than the last government. His last government was center-right. This one could be more to the right, but that, of course, depends on how he creates his coalition and what deals he makes. That will be what's fascinating now to see and that's when everything shifts to now that the elections were over and we're getting the final results.

Christine, it will still take about a week to certify these results, to make them official, but Netanyahu certainly has reason to celebrate here in Israel today.

ROMANS: All right. Oren Liebermann, thank you so much for that.

BERMAN: Happening this morning, Secretary of State John Kerry in Switzerland for a third day of nuclear talks with the Iranian Foreign Minister Javad Zarif. Iran's negotiators were already claiming major progress, telling state news media that 90 percent of technical issues have been worked out. The U.S. diplomats are saying there are, quote, "still some tough, tough issues to address."

Senate Republicans not backing down from their controversial letter to Iranian leaders. No regrets at all, that's how the letter's author, Tom Cotton, senator from Arkansas, is now putting it.

I want to bring in our senior international correspondent Nic Robertson, who was at the negotiations in Switzerland.

Good morning, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, good morning, John.

We were expecting Secretary Kerry and Foreign Minister Zarif to meet again this morning. They had three meetings yesterday, following the first meeting, the update that we had from State Department officials was that there was some progress made on discussing technical options, that is how to get around some of the technical, you know, gaps that remain on making agreement. But it's not agreement on these technical issues, really what we're

being told is that there's sort of a better understanding of what the options might be to how to resolve these outstanding issues. We're being told by the State Department that there's still a lot to be done, that there's substantial political issues. We've heard this a number of times and Secretary Kerry saying, really, this is the time where Iran needs to be making some tough political choices.

By political choices, we're talking here about sanctions, we're talking here about, you know, Iran speaking openly about its past military uses on its nuclear program. We're talking about the types and designs of centrifuges that it perhaps wants to retain in the future.

[04:05:00] So, there are still substantial issues and substantial gaps here. But nevertheless, a State Department official did say yesterday that compared to the previous day, some progress had been made. But the deadline's rapidly approaching. It's just under two weeks away now, John.

BERMAN: Need some concrete results from these meetings before the deadline. Nic Robertson, thanks so much.

ROMANS: Happening this morning: a U.S. Air Force veteran goes before a judge, accused of attempting to join ISIS in Syria. The experienced airplane mechanic was caught and turned back by Turkish authorities in January. U.S. investigators later found a letter on his laptop in which he allegedly declared himself a mujahideen.

CNN justice correspondent Pamela Brown has more from Washington.

(BEGIN VIDEOTAPE)

PAMELA BROWN, CNN JUSTICE CORRESPONDENT: Well, John and Christine, according to court documents, 47-year-old Tairod Nathan Webster Pugh from Neptune, New Jersey, who was at one point a mechanic for American Airlines trying to travel to Syria to join ISIS. Also, he was in the Air Force for several years, where he trained in the installation of maintenance of aircraft engines and weapons systems.

People I've been speaking to in law enforcement say that's concerning because he could have brought his expertise to the terrorist group if he made it over to Syria to join ISIS as authorities allege in this criminal complaint. And according to that complaint, Pugh left the Air Force in the '90s and worked for several private aviation companies in the U.S. and the Middle East as an airplane mechanic. In January, he allegedly flew from Egypt to Turkey, trying to cross into the border of Syria.

Turkish officials apparently questioned him and according to court documents, he told them that he was a pilot with U.S. Special Forces and he was in Turkey to vacation. However, Turkish officials denied him entrance after he refused them access to his electronics, and then sent him on a return flight to Egypt.

The criminal complaint says it appeared Pugh's electronics had been tampered with, once he arrived in Egypt. Egypt then deported him to the U.S., and he was arrested by the FBI in January.

After a search of Pugh's laptop, the FBI said it did recover some evidence. More than 180 jihadist propaganda videos, including an ISIS video that shows the execution of multiple prisoners. They also found -- agents found Internet searches for borders controlled by the Islamic State and searches for ways to cross from Turkey and to Syria.

Pugh's defense attorney tells CNN his client will plead not guilty when he faces a judge -- John and Christine.

(END VIDEOTAPE)

BERMAN: Pamela Brown, thanks so much.

Developing overnight, a letter intended for the White House has tested positive for cyanide. The Secret Service now conducting more tests to confirm that initial finding. The agency not saying whether the letter was addressed to the president himself. A law enforcement official tells CNN there were no injuries, no exposure concerns for the screening facility employee who opened that letter.

ROMANS: Illinois Congressman Aaron Shock is resigning in the face of growing questions about extravagant spending, which includes "Downton Abbey"-inspired decor in his Capitol Hill office. The 33-year-old Republican has been dogged by accusations he's used campaign funds and taxpayer money to finance a lavish personal lifestyle. In a statement, Schock says the kinds of questions have made it too difficult to serve.

Speaker Boehner said Schock is putting the best interest of his constituents and the House ahead of his own. Schock will step down at the end of the month.

BERMAN: Some of the details coming out of that are fascinating.

The new director of the Secret Service facing off with outraged lawmakers. Joseph Clancy was grilled by a House committee about a series of embarrassing scandals at the agency, including the latest incident involving two agents who allegedly disrupted a late-night bomb investigation at the White House. The director confirmed he didn't find out about this for five days.

(BEGIN VIDEO CLIP)

JOSEPH CLANCY, U.S. SECRET SERVICE DIRECTOR: It's going to take time to change maybe some of this culture. There's no excuse for this information not to come up the chain.

(END VIDEO CLIP)

BERMAN: The House Oversight Committee has decided to open its own investigation of the Secret Service. Director Clancy back on Capitol Hill next week.

ROMANS: Republicans formally unveiled their 2016 budget today. It calls for higher defense spending, deep cuts to social services and eliminates deficits within a decade. It also assumes $2 trillion in savings from the full repeal of Obamacare. Most analysts agree it has zero chance of passing.

The president's budget proposal would raise taxes on the wealthy. The paper infrastructure and education upgrades.

BERMAN: Kentucky Senator Rand Paul will make his presidential candidacy official next month. The campaign source says that the senator plans to announce at a speech in Louisville on April 7th, that is the day after the NCAA championship in which the University of Kentucky is heavily favored to win, although University of Kentucky in Lexington, not Louisville. You know, Rand Paul didn't go to either of the university, with the Baylor.

The first stops for Paul in days after the announcement will be Iowa, New Hampshire, and South Carolina.

ROMANS: He has flirted with running before, but Donald Trump may be serious about seeking the 2016 Republican nomination. "The New Hampshire Union Leader" reporting Trump will launch a presidential exploratory committee today. The report says the businessman will not renew his contract with NBC for "The Apprentice".

[04:10:00] The Trump announcement coming ahead of his visit to New Hampshire Thursday for meetings with groups of veterans and local business leaders.

BERMAN: So, there's that.

ROMANS: There's that.

Time for an early start on your money.

European stock markets mostly lower, Asian stock markets higher this morning. U.S. stock futures right now, looking slightly up.

Yesterday, the Dow tumbled 128 points. Oil prices fell for a sixth straight session.

Also, investors nervous about just how quickly the Federal Reserve plans to start raising interest rates. Today, it could come down to one little tiny word "patient". For months, the Fed has said it will be patient about raising interest rates. Investors think it will remove the promise, that word "patient" from its statement today, signaling a rate hike could come as soon as June.

BERMAN: Is that a little bit of a double dip in the oil prices?

ROMANS: It really is. That slide six days in a row, it's been interesting to watch.

BERMAN: A friend of the Boston marathon bomber, Dzhokhar Tsarnaev, on the witness stand, being asked questions about a gun, drugs. We have new details, next.

(COMMERCIAL BREAK) ROMANS: Testimony resumes in just a few hours in the trial of accused Boston marathon bomber Dzhokhar Tsarnaev. Prosecutors called their 60th witness on Wednesday, Stephen Silva, a close friend of the defendant. He told jurors about loaning Dzhokhar a gun, a few months later, the Tsarnaev brothers allegedly used that gun in their violent escape attempt.

We'll get more this morning from CNN's Rosa Flores.

(BEGIN VIDEOTAPE)

ROSA FLORES, CNN CORRESPONDENT: John, Christine, from smoking pot to hanging out with a pot dealer, jurors really learned a lot about Dzhokhar Tsarnaev personally on Tuesday. Most of those damning details coming from Stephen Silva.

Now, this man claims to be Dzhokhar Tsarnaev's best friend from back in high school. They used to hang out and smoke pot, he says. Now, Silva also says that he used to sell pot, that he needed a gun for his pot business. He obtained a gun and that Dzhokhar Tsarnaev asked him for that gun, never returned it.

[04:15:02] Now, prosecutors say that that gun is connected to the Boston bombing case. And we should also add that Silva is testifying in a jumpsuit. Why? Because he's pleaded guilty to drug and weapons charges. And you guessed it, those weapon charges are for that gun that's now linked to the Boston bombing.

One other important keynote about Tuesday in court, and these are new revelations, new writings, not the manifesto, but carvings on that boat that Dzhokhar Tsarnaev used to get refuge. It says, "Stop killing our innocent people, and we will stop," end quote.

Again, Dzhokhar Tsarnaev may not say a word in trial or in court, however these writings, these carvings could help determine if he lives or if he dies -- John, Christine.

(END VIDEOTAPE)

BERMAN: Rosa Flores for us in Boston.

Robert Durst is waking up in a new correctional facility this morning. He's been transferred about an hour outside New Orleans to a center equipped to deal with the mentally ill. A judge set a detention hearing for Monday. Durst is facing murder charges in Los Angeles, gun charges in New Orleans and a revived murder investigation in New York. Police raided Durst home in Houston on Tuesday.

ROMANS: It is now on the docket. The judge in the trial of Colorado movie theater massacre suspect James Holmes has set opening statements for April 27th. That is more than a month ahead of schedule. The 27- year-old Holmes is charged with killing 12 people and wounding 58 in that Aurora theater shooting. He's pleaded not guilty by reason of insanity. Officials say jury selection moving ahead faster than expected.

The process began in January, some 9,000 potential jurors were summoned.

BERMAN: Still nearly three years after that massacre.

ROMANS: Yes.

BERMAN: Former NFL star Aaron Hernandez may have been angry at Odin Lloyd, the man he's accused of murdering. A witness testifying at that trial says the defendant was staring him down as he talked to a mutual friend at a nightclub, two days before the alleged murder. Jurors were expecting to hear more testimony today on the crime scene and the impression from Nike sneakers that Hernandez allegedly wore.

ROMANS: Another scandal rocking Penn State University. The school's Kappa Delta Rho fraternity suspended for a year and facing a criminal investigation for allegedly posting compromising photos of women on a private Facebook page. Some of those women appear to be asleep or unconscious. Police are conducting forensic tests on dozens of graphic images and have not ruled out possible arrests.

BERMAN: The Presbyterian Church changing its Constitution to redefine marriage as between two people. It is now the largest Protestant domination in the country to embrace same-sex marriage. Last year, the church cleared the way for ministers to preside gay weddings, with approved from their congregation in states where the unions are legal. The new marriage definition officially takes effect in June.

ROMANS: The four-year drought in California has become so severe, the state's restaurants are now banned from serving water to customers unless they request it. Fines for breaking the new law can reach $500. Scientists now sounding an alarm about unprecedented water shortages, increased wildfires, farm foreclosures and huge economic losses in the region for years to come.

BERMAN: On the verge of spring and a new snowstorm is set to hit the Northeast. Oh my!

Meteorologist Pedram Javaheri has an early look at the weather.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Good morning, John and Christine.

Quickly start you off across California. This has really been the best case scenario all winter, isolated and scattered thunderstorms at best. That's the forecast the next 24 hours in California. Unfortunately, high sierra snow, very little of it going to go around. Water reserve going to be minimal as we headed in toward the summer months.

But look at this -- the big story this morning, Boston, wind chill, winter-like temperatures back in the forecast. Twenty-seven feels like 12. New York City down into the mid 20s when you factor in the winds. Wind gusts could reach 45 to 50 miles per hour. Certainly some delays possible in and around Northeast airports, with high temperatures generally into the 30s, around Boston and New York.

We have some snow showers pushing in across portions of New England this morning. But we're watching a pretty strong area of thunderstorms down to the South, southern Texas, drought-stricken region. Storm track generally will take it around the Gulf Coast states, push it in potentially off the Northeast and if this happens, enough cold air is in place, Friday into Saturday, where a wintry mix possible.

Look at the temperatures across New York City as we head into the region guys.

ROMANS: Let me get this straight. Friday is officially the first day of spring and we're going to get some rain.

BERMAN: Yes, nix the mix is what I say. Nix the wintry mix months now.

ROMANS: A new snag in talks to normalize U.S.-Cuba relations. Raul Castro's harsh words for the White House, next.

(COMMERCIAL BREAK)

[04:23:25] ROMANS: Happening today, Russian President Vladimir Putin expected to attend a huge concert in Red Square. He'll be there to celebrate the first anniversary of Russia's annexation of Crimea. We're learning new details about his stand-off with Ukraine over Crimea. Ahead of the anniversary, a Russian state TV aired a documentary on Sunday in which Putin says he was ready to put nuclear forces on alert over that crisis.

Joining us now live from Moscow, senior international correspondent Matthew Chance.

Good morning, Matthew.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Christine.

That's right, that documentary airing those remarks by Vladimir Putin, potentially very -- I was going to say explosive, but you know what I mean.

Certainly, the remarks underlining just how important Crimea is to Russia. Vladimir Putin saying that he even considered putting the country's nuclear forces on alert if the situation had unfolded, that the West, for instance, or other countries had tried to retake Crimea from Russia. So, it's very important to Russia for them to keep Crimea.

And that's being reflected today. There are celebrations in various locations, but the main one taking place here in Moscow, near Red Square. Thousands of people expected to attend a pop concert, essentially a gala concert involving Russian pop stars and various celebrities, to celebrate what is for many Russians, a very joyous occasion, that Crimea, which was traditionally part of Russia, has now returned into the Kremlin fold, as it were.

The expectation is that Vladimir Putin will attend. It's not been confirmed actually by his office yet, but this is such an issue of popularity for him.

[04:25:02] He's associated so personally with the annexation of Crimea, that my expectation is that we will see him there later, Christine.

ROMANS: All right. Matthew Chance -- thank you for that, Matthew.

BERMAN: Round three of negotiations between the United States and Cuba now done. No word from either side about re-opening embassies or restoring official diplomatic ties. But President Raul Castro did have harsh words for the White House for hitting Venezuela with a new round of sanctions and calling Cuba's closest ally, a threat to U.S. national security. Despite those comments, the two sides have agreed to maintain communications moving forward.

ROMANS: The royals on American soil, Prince Charles and Camilla arrived in Washington, D.C. Tuesday.

BERMAN: Look at them.

ROMANS: It's all part of a four-day visit that will include a trip to Kentucky with a private meeting with President Obama Thursday. They'll be marking major milestones from the 150th anniversary of the American Civil War and the death of President Abraham Lincoln. Their trip to the U.S. aimed at strengthening the ties between America and Britain.

BERMAN: They're just like us, the royals.

ROMANS: They're not like us at all. They're not like us at all. That's kind of the whole point of -- well --

BERMAN: Of having them?

ROMANS: Yes.

Israel's prime minister claiming a huge victory in a tight election race that revealed a divided Israel. What will Benjamin Netanyahu do next? We're live after the break.

(COMMERCIAL BREAK)

BERMAN: Happening now, a decisive victory for Israeli Prime Minister Benjamin Netanyahu. The campaign seemed so close. But at the end, he opens up a significant edge. We are live now with what comes next.

ROMANS: A U.S. veteran arrested, accused of trying to join ISIS in Syria.