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Early Start with John Berman and Zoraida Sambolin

Nineteen Killed In Tunisia Terror Attack; U.S. Embassy In Tokyo Gets Death Threats; Iranian Nuclear Talks Enter Fourth Day; Stocks Surge On Fed Statement; Racial Tensions Flare At UVA; Marathon Bombing Trial; Penn State Fraternity Scandal; Oil Prices Move Lower. Aired 5:30-6a ET

Aired March 19, 2015 - 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: Terror attack at the museum, tourists killed as gunmen storm that building. This morning, an intense search for accomplices to this crime and also mounting questions as to who is behind the attack and what they may have planned for the future. We are live with developments.

CHRISTINE ROMANS, CNN ANCHOR: Death threats against Caroline Kennedy, the U.S. ambassador to Japan reportedly targeted and an investigation has been launched. We're live with the very latest.

BERMAN: Breaking overnight, new calls for justice in the arrest of a University of Virginia student caught on camera. You can see him bloodied on the ground. Did police use excessive force? We have new details 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 all this morning. Developing this morning, a manhunt is underway in Tunisia after three terrorists, who escaped after attacking the Bardo Museum in Tunis.

In just the last hour, Tunisia's prime minister revealing the names of two of the attackers. Police say five gunmen killed 19 people most of them tourists, 22 were hurt. Two of the terrorists were killed. No one has immediately claimed responsibility although the fear is that ISIS is behind this.

Senior international correspondent, Arwa Damon, is live for us in Tunis. Arwa, bring us up to speed. What's the very latest there?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Christine. Now the prime minister not just revealing the two names, the identities of those gunmen that were killed inside the Bardo Museum just behind us, but also saying that one of them was an individual who was known to the intelligence services, although, exactly why at this stage does remain unclear. As does the whereabouts or any sort of efforts or developments underway for that manhunt for the three attackers believed to have also been responsible for all of these.

No direct claim of responsibility at this stage, but great concerns that ISIS or ISIS supporters may have been behind this. Tunisia has the highest number of fighters in the battlefields in both Iraq and Syria. Many of them believe to be fighting alongside ISIS and other extremist groups upwards of 3,000.

Hundreds of them believed to have come back home and just last week, a fairly well known Tunisian Jihadi putting out a statement saying that the world should expect a pledge of allegiance to ISIS fairly soon.

Others believe that this horrific attack that took place here is in direct response to Tunisia's own efforts to clamp down on extremists. In February, the government hundreds of individuals that it said had links foreign fighters to Jihadi.

This perhaps could have been a reaction to that, but great concerns also amongst the population that perhaps the security services here have not been doing enough to try to prevent this from happening.

Perhaps under estimating the threat that ISIS and extremism posed to the country because up until now, when we look at all of the nations that were involved in the Arab spring and this was the birth place of it, Tunisia was the only success story, the country that managed to hold elections, very recently putting in power a fairly moderate secular government.

This many believe is a direct blow to that success and a direct effort by whomever it was who is responsible for this attack to bring the country to its knees by deliberately targeting its economy, by targeting its tourists.

But everyone who we have been talking to very determined to put forward a message to all those who are watching that this is a country of tolerance. This is a country that welcomes foreigners. This is a country home to Jewish, Christians and Muslim sites.

People wanting the world know that they should not shy away from coming here, but also lot of expectations, right, when it comes to what the government is going to do next especially what will happen to prevent such an attack from taking place once again -- Christine.

ROMANS: Yes, Arwa Damon, so much of that economy, about 20 percent of the economy is tourism. It is important booking season for the summer season. They have to put on a brave and concerted effort to woo people to come this summer. Thank you so much for that, Arwa.

BERMAN: Happening now, Japanese authorities are investigating reported death threats against the American Ambassador Caroline Kennedy. Local media say police are tracking the source of the phone calls to the U.S. Embassy in Tokyo threatening to kill Kennedy.

Now news of those threats came Wednesday just as First Lady Michelle Obama was arriving in Japan in a five-day trip to the region. The U.S. State Department says it is now working with Japanese authorities.

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JEN PSAKI, STATE DEPARTMENT SPOKEWOMAN: We take any threats to U.S. diplomats seriously. We take every step possible to protect our personnel. We are working with the Japanese government to ensure that necessary security measures are in place.

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[05:40:13] BERMAN: Live for us in Tokyo this morning with the very latest is CNN's Anna Coren. Good morning, Anna.

ANNA COREN, CNN CORRESPONDENT: Hi, John. As you say, U.S. State Department taking these seriously and working closely with Japanese authorities here. We do understand that security has been stepped up for American diplomats. Not just here in Japan, but across the region.

Just a couple of weeks ago, the U.S. ambassador to South Korea was attacked by a crazed man wielding a knife. Mark Lippert was injured and sustained injuries to his arms and to his face. He had to have 80 stitches.

It is a result of that attack in Seoul and now the death threats against Caroline Kennedy, the U.S. ambassador to Japan, that have really rattled authorities.

We know an investigation is underway. The phone calls were made to the embassy here in Tokyo last month. The majority of the phone calls by a man speaking English saying he wanted to kill Caroline Kennedy, who, of course, is the daughter of President John F. Kennedy.

She has been in the role here now for 16 months. She is well respected and admired. There were also threats made to the U.S. Consul General in Okinawa, which of course, is where 50,000 U.S. troops are stationed.

But certainly as we know Caroline Kennedy is going about her normal duties. U.S. First Lady Michelle Obama is in country. She is here to work with Japan in her "Let Girls Learn" initiative.

So we heard from Caroline Kennedy a little bit earlier today when she spoke about the three Japanese tourists who were killed in those attacks in Tunisia.

So Caroline Kennedy paying respects and sending condolences to the victims' families, but as I say, she is going about her normal work, but obviously, John, security is tight.

BERMAN: OK, Anna Coren for us in Tokyo, thanks so much.

ROMANS: This morning, Secretary of State John Kerry remains in Switzerland for another day of nuclear talk with Iran. In Washington, the State Department offering assurances that Benjamin Netanyahu's re- election as prime minister of Israel will have no effect on the negotiations with Iran.

In spite of Netanyahu's ferocious attack on the nuclear deal in a speech to Congress this month. Arkansas Senator Tom Cotton is siding with the prime minister.

At an event Wednesday, Cotton again defending his controversial letter to Iranian leaders saying America must stand with its traditional allies and against Iran's drive for what he called regional hegemony.

Let's bring in CNN's Nic Robertson from the nuclear talks in Switzerland. Good morning, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Christine. Well, this morning's talks are really going a lot like yesterday's technical issues are taking up the sort of first place in the talks rather than the political issues.

We can see that because there is a technical meeting going on right now between the U.S. energy secretary and the Iranian head of their atomic energy organization.

So, this is what we saw yesterday. There were more technical meetings than political meetings. Indeed Secretary Kerry was supposed to sit down with the Iranian foreign minister about an hour ago. That meeting has been pushed back.

So the sort of system that we are seeing is you get more of the technical discussion, you know, than the political leaders coming in to discuss that and what gaps they can bridge from there.

Secretary Kerry all along has said that the Iranians need to make some fundamental decisions, the toughest decisions they need to make on political, we don't seem to be making progress there.

But I did ask the Iranian foreign minister this morning what progress he was seeing and he was talking here about technical issues. This is what he said to me.

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ROBERTSON: Mr. Zarif, good morning. CNN, sir, can you tell us how are you making progress?

JAVAD ZARIF, IRANIAN FOREIGN MINISTER: We are making progress, but there are issues that need to be resolve.

ROBERTSON: Which issues need progress, sir?

ZARIF: All of them, no, some of them.

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ROBERTSON: So that was interesting there. He clearly wanted to indicate something is being achieved here. Not everything is still an issue. It's just some things that need to be resolved. The reality is the political heavyweights from the P-5 plus one, the other sort of foreign ministers haven't arrived here and that would really be the indication that a deal was about to be made. So we are still not there yet -- Christine.

ROMANS: Still not there yet, although, it's a beautiful spring day in Lausanne. Thank you, Nic, for that report.

Time for an EARLY START on your money this morning, U.S. stock futures down a bit right now. Stocks though had a great day yesterday after the Federal Reserve statement. The Dow ended up 227 points. It's now above 18,000 again.

[05:40:04] The Federal Reserve dropped its promise to be patient when it comes to raising interest rates. Fed Chair Janet Yellen stressed the Central Bank will not be impatient either. A rate hike is unlikely at its next April meeting. The feds also lowered growth forecast which could delay a rate hike a bit longer.

Big news from Target, Target has agreed to pay $10 million to settle a class action lawsuit following its huge data breach. Victims able to prove they were harmed can collect up to $10,000 in damages, 10 grand for that data breach. The breach was during the 2013 holiday season. Remember, it was one of the largest ever affecting up to 110 million Target customers.

BERMAN: Can I ask a question about Janet Yellen? How can you not be patient but not be impatient? Is there like a fine point right in between the two?

ROMANS: It is like the Goldilocks of fed watching, not too hot, not too cold --

BERMAN: I hope Janet Yellen likes porridge.

BERMAN: New outrage over the arrest of a college student caught on camera bloody and slammed on the pavement. Did police go too far? What the student at the center of the controversy had to say overnight next.

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BERMAN: Breaking overnight, racial tensions flaring at the University of Virginia after white officers arrested a black student outside a bar. The 20-year-old Martese Johnson was taken to the ground, you see him bloodied right there.

Cell phone videos of the arrest quickly spread on social media. It triggered an angry demonstration on the UVA campus. Johnson made an appearance to urge his fellow students to remain calm.

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MARTESE JOHNSON, ARRESTED UVA STUDENT: Regardless of your personal opinions and the way you feel of our subjects, to please respect everyone here. We are all part of one community. We deserve to respect each other especially in times like this. Thank you.

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BERMAN: Johnson is charged with public intoxication and obstruction of justice. He is an elected member of the university's prestigious Honor Committee in charge of community relations. Virginia Governor Terry McCall is calling for an investigation into this arrest.

ROMANS: A third year student, double majoring in Italian and Media Studies. The jury at the trial of accused Boston marathon bomber, Dzhokhar Tsarnaev, heard testimony Wednesday on deadly weapons allegedly used by the Tsarnaev brothers including two homemade bombs. CNN's Alexandra Field has more.

ALEXANDRA FIELD, CNN CORRESPONDENT: Christine, John, jurors got a glimpse at part of the arsenal of homemade bombs, including a Tupperware container stuffed with two or three pounds of explosive powder with fuses on top of it.

They also saw two pipe bombs that never detonated. Those pipe bombs about 2 inches in diameter, one of them formed in an "l" shape. A bomb tech who testified on the stand said it was similar to an improvised grenade designed to stop where it landed without rolling away. Those pipe bombs were recovered on Laurel Street, the scene of the shootout with Watertown police.

That's the same spot where investigators recovered the Tsarnaevs' car, a green Honda Civic. Jurors also got to see some of the items they found inside that car including Tamerlan Tsarnaev's wallet whose driver's license still inside it.

Also a receipt for two backpacks bought at Target just the day before the marathon bombing, and two white gloves covered in blood. One investigator testified that the blood on this glove is a match for Sean Collier's DNA, the M.I.T. police officer killed in his squad car just hours before that shootout in Watertown -- Christine, John.

ROMANS: All right, thanks, Alexandra.

BERMAN: Let's take a look at what is coming up on "NEW DAY." Michaela Pereira joins us now. Good morning.

MICHAELA PEREIRA, CNN ANCHOR, "NEW DAY": Good morning to the both of you. As you have been doing, we are going to continue to follow that horrifying terror attack in Tunisia. Authorities there are on the hunt at this hour for three of the gunmen who remain at large.

They were involved in killing those 19 people at a popular museum. There are so many questions this morning including who was behind it. Perhaps was it inspired by ISIS? We will speak with a member of Tunisia's parliament who was actually inside one of the buildings connected to the museum during that whole ordeal.

We are also going to examine all of the angles with our terror experts. Plus we are going to have the very latest for you on the Robert Durst case. We will speak live with Jim McCormick. His sister was married to Robert Durst. She disappeared back in 1982.

He believes that Durst killed her. So what does he think about the latest arrest of Durst and does he believe there could finally be some closure for his family? So we got a lot to get to. John, you'll be joining us in a moment.

BERMAN: Looking forward to it. Thanks, Michaela.

ROMANS: Thanks, Michaela. New information in the Penn State fraternity scandal, new charges, those students could now face next.

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ROMANS: Members of the Kappa Delta Rho fraternity at Penn State University could face charges for posting lewd pictures of women online. Police say if any of the fraternity brothers had romantic relationships with the women and posted those photos without their consent, they could be charged under the state's revenge porn law. CNN's Sara Ganim has more.

SARA GANIM, CNN CORRESPONDENT: John and Christine, this was more than just bad fraternity behavior. This could be criminal. Police are investigating the Kappa Delta Rho fraternity chapter at Penn State for photos that members allegedly posted to an invitation only private Facebook page.

Photos of women who appear to be passed out or partially naked, and others in compromising and embarrassing positions with comments from the brothers like this one. "Lol. Delete those or we will be on CNN in a week." Well, guess what? Here we are on CNN talking about you.

Police say the other photos show illicit drug sales and one where brothers are showing their bare butts, police say that's a hazing incident. The fraternity was swiftly suspended for a year.

Penn State saying the conduct was, quote, "highly inappropriate and appalling, offensive and inconsistent with the university community's values and expectations."

Now because this was a private page, police tell me that much of the content has been wiped clean. Authorities are working with Facebook to get more evidence. Police found out about all of this because an alum of the fraternity, who still had access to that page took screen shots and then handed them over to police.

Authorities are now trying to track down the 144 members, who are part of the group as well as the women, who are depicted in the photos. It is still unclear if charges will be filed, but it certainly is disturbing -- John and Christine.

ROMANS: All right, Sara Ganim, thank you for that. Disturbing, it is. It's 53 minutes past the hour. More minimum wage workers getting a raise, the latest major retailer to bump pay, I'll tell you next.

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ROMANS: Let's get an EARLY START on your money this morning, U.S. stock futures are down a bit right now, but yesterday they popped after the Federal Reserve's statement. The Dow ended up 227 points. The Federal Reserve dropped its promise to be patient when it comes to raising interest rates. Fed Chair Janet Yellen stressed the Central Bank will not be impatient either.

A rate hike is unlikely at its next meeting in April. The fed's lowered growth forecast, which could delay a rate hike a bit longer. At least that's the thinking on Wall Street right now.

Oil prices tanking this morning, U.S. crude down more than 3 percent right now, around $43 a barrel, that is near a six-year low. The supply glut doesn't seem to be going anywhere. America's oil stockpiles keep climbing to historic levels. Cheap fuel great for consumers, it's devastating for oil companies. More than 100,000 oil workers around the world have lost their jobs because of this plunge.

A big win for Seattle workers, local franchise owners challenged the city's plan to have the highest minimum wage in the country saying the workers could end up actually having jobs cut and the businesses could end up out of business.

But a judge rejected that argument and starting April 1st, workers in Seattle will get at least $11 an hour that will go up to $15 an hour by the year 2017.

Target is also boosting employee wages. Workers will make at least $9 an hour in April. Target the latest to raise wages following Walmart's lead earlier this year. Gap actually the first company to do that about a year ago and saw a rush of new job applications.

The manhunt is on after a terror attack at a museum. "NEW DAY" picks up the story right now.