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Early Start with John Berman and Zoraida Sambolin

Gaza in Ruins; White House Condemns Gaza School Attack; MH17 Shot Down: Mines Block Crash Site; Russia Scorns Sanctions; House Authorizes Lawsuit Against Obama

Aired July 31, 2014 - 05:00   ET

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

CHRISTINE ROMANS, CNN ANCHOR: Gaza in shambles. Israel pounding the strip with bombs, attacking markets and schools. No place seems safe this morning as a defiant Hamas refuses to stop fighting. We are live in Gaza and Jerusalem with the latest developments overnight and the political fallout this morning.

JOHN BERMAN, CNN ANCHOR: More breaking news, minutes ago, Ukraine announces a cease-fire near the crash site of Malaysia Airlines Flight 17. Investigators have been kept from the scene for days. Will this make a difference? Live team coverage ahead.

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

ROMANS: And I'm Christine Romans. It's Thursday, the last day of July, 5:00 a.m. in the East.

Up first, horrifying images: a conflict that is spiraling out of control. I want to warn you, these pictures we are about to show you are graphic. Israeli warplanes bombarding a crowded marketplace in eastern Gaza City. Seventeen Palestinians dead, 200 others wounded. This after a deadly blast at a U.N. school left Palestinians 16 dead. Israel insisting Hamas bears responsibility.

But the U.N. secretary general doesn't see it that way.

(BEGIN VIDEO CLIP)

BAN KI-MOON, U.N. SECRETARY GENERAL: All available evidence points to Israeli artillery as the cause. Nothing is more shameful than attacking sleeping children.

MARK REGEV, NETANYAHU SPOKESMAN: We know for a fact that Hamas terrorists were using the vicinity at the school as a shield to shoot at our forces.

SARA SIDNER, CNN CORRESPONDENT: The area, though, but not the school itself.

REGEV: If you are standing by the front gate and shooting and you don't want to be shot back because there's a school behind you. It's the same.

(END VIDEO CLIP) ROMANS: And it's just in: Palestinian Authority President Mahmoud Abbas firing letter to the U.N. attorney general saying, quote, "Israel's systematic and deliberate attack on civilian homes as well as U.N. schools sheltering civilians and on hospitals constitute war crimes. I have declared the Gaza Strip a disaster area."

Karl Penhaul live from Gaza this morning.

Karl, we understand Israel calling up 16,000 more reservists to give some rest to those that have been on the front line. It doesn't look like there's any pause, any de-escalation of this crisis at all.

KARL PENHAUL, CNN CORRESPONDENT: No, absolutely not. Israel bringing up more troops and the government there warning its citizens this could be a prolonged campaign. And here in Gaza, the head of the military wing of Hamas, the Al Qassam Brigade, is saying that there can be no middle ground. So, certainly, both sides seem to be set in for a long fight. Just punctuating that, just now as we were coming to air, again the sound of artillery fire pounding Gaza along the eastern borders. And also, we've just seen the vapor trails of Hamas rockets going up into the air. But I believe they could have been intercepted by Israel's Iron Dome defense system because we see kind of explosions in the sky as well.

So, certainly no let up today after yesterday, which was, of course, a very bloody 24 hours. I mean, just look at those pictures from that crowded marketplace. Those pictures, to me, tell a couple stories, first of all, the Palestinian farmers, each time they have a small window to rush out into their field to harvest vegetables and tomatoes and bring them back, that's what they are doing that's why there is produce at the market.

But then, when that was going on, of course, these explosions falling into the crowded marketplace. Actually, at one point, we see the camera dropped. The journalist filming was killed. But his assistant picks up the camera and carries on. He just believed that he had to do his job and showed what is going on.

Now, of course, as well, that attack on the U.N. school and the United Nations saying they have hard evidence, they believe that Israeli artillery was to blame and as well when we were speaking to the commissioner general of the United Nations Relief Agency, he says, also, of course, that Hamas in the past two weeks has been storing weapons and rockets in three other United Nations schools, although those vacant at the time.

It goes to show how dirty the war is becoming, how none of the warring sides are respecting the neutrality either of civilians or international organizations like the United Nations, Christine.

ROMANS: All right. Karl Penhaul for us this morning, live in Gaza -- thank you, Karl.

BERMAN: The White House expressing grave concerns about the onslaught in Gaza, condemning the shelling of that U.N. school, but not directly placing the blame on Israel. It's a carefully worded statement, in which is Obama administration makes sure to condemn those responsible for hiding weapons in U.N. facilities.

Officials in Jerusalem reacting right now to a backlash, calling the decisions by Peru, Chile, and El Salvador to pull their ambassadors out of Israel a deep disappointment.

I want to go live now to Jerusalem and bring in Saima Mohsin to discuss this.

Saima, I understand Israeli Prime Minister Benjamin Netanyahu is speaking right now.

SAIMA MOHSIN, CNN CORRESPONDENT: Yes, Prime Minister Netanyahu holding a cabinet meeting. Usually, by the way, John, these are televised. But this time around, we are seeing more and more of these cabinet meetings as well.

The prime minister just finished speaking right now in the cabinet meeting. The defense minister is speaking. I managed to get a translation of what they have said. And one of the top lines is staring out at me is that he ended by saying this is just the first phase of the demilitarization of the Gaza Strip. So, quite clearly, it seems there is more to come. There is not letup.

Let's not forget that this morning, 16,000 more reservists are added to the Israeli force, which will be 86,000 strong. Another thing, he said we reminded everyone at the beginning of the campaign, there's no guarantee of protection of tunnels. The terrorist targets that the Israelis believed they have managed to target and strike down.

He says that we have to break Hamas' ability to kidnap and murder civilians. Of course in this conflict so far, 56 Israeli soldiers killed, three civilians. But, of course, this all started with the kidnapping and murder of three young Israeli teenagers.

But, no addressing really of the criticism from around the world of the deaths of civilians in the Gaza Strip. Of course, more than 1,300 -- 1,361 to be precise of people have been killed, of which we believe 315 are young children. The United Nations says 70 percent to 80 percent of them are indeed civilians and a huge concern about the civilian casualties.

The White House deputy press secretary having a statement last night saying that Israel needs to do more to live up to its own standards to limit civilian casualties. Not had a reaction so far, certainly from the prime minister as he'd just spoken this morning in that cabinet meeting.

We may, yet, have a cabinet meeting go on. This is a story that is happening right now. It's the ever evolving statements coming out.

Now, the controversial thing this morning, John, is that while the United States on the one hand is criticizing Israel saying look, you need to do more to protect civilians, to limit civilians casualties, while we understand your right to protect yourself, Israel's right to self-defense against the Hamas rockets fired into the territory. It is also agreeing to resupply Israel with various munitions, including a grenade launcher ammunition and mortar rounds. And this controversy surrounding the nature of those munitions, as to whether they can really target precisely and whether they can, indeed, use those types of ammunition to limit civilian casualties -- John.

BERMAN: Words from Prime Minister Benjamin Netanyahu just minutes ago. This is the first faze of the demilitarization of Gaza.

There'll be a lot of work over the next several minutes and hours decoding just what he means by that.

Saima Mohsin, in Israel for us -- thanks so much.

ROMANS: Breaking news just into CNN: Ukrainian military declaring a one-day cease-fire near the wreckage of MH17. A one day cease-fire in its battle with pro-Russia rebels. This, as international investigators gain access to the wreckage of Malaysia Airlines Flight 17 again.

But a CNN crew was able to reach the site yesterday, Wednesday, finding human remains, finding passengers' personal belongings scattered across the debris field.

Nick Paton Walsh was there. He's tracking the latest developments for us live in Donetsk, Ukraine, this morning.

So, it's a cease-fire just around the crash area, Nick, that I guess is designed to allow international investigators to get to that site.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes. We are hearing today that the OSCE's monitoring, those who have been here for months observing the conflict, trying to negotiate a way through that. They have been assisting access to crash sites. They've been tweeting, they are trying again today to get to the crash sites. A spokesman saying in his separate personal account that they are making good ground there, covering a lot of geography.

I should point out, that some of the journalists who appeared to be following there, they are talking about the violence in that area. Not so easy a path. If they do get to the site, then, of course, there's more potential for that large inspection mission to get there. But despite the fact we were able to get there yesterday, we were a small car moving discreetly through fields. This is a convoy of 10 to 20 vehicles of Dutch and Australian police who need to be there for hours if not more doing their job at that site.

So, a very complex situation. Yes, there is unilateral cease-fire here. But that's just the Ukrainians saying they will stop fighting there. In the same breath, the separatists are planning to launch rockets near the crash site. Great mistrust between both sides, obviously, given this is a brutal, civil war.

That makes it hard for the inspectors to trust promises on both sides. They would both like to blame the other for wrongdoing that occurs when this mission is underway.

And, of course, bear in mind, too, if you buy into the narrative that Kiev is really looking to control access to the site, they don't want inspectors getting there until it's properly secured by the Ukrainian forces, today also is a day in which is Ukrainian parliament sit down and address the legality of foreign inspectors conducting their mission on Ukrainian soil.

So, a lot happening today, but the one thing we are not going to see, I think, is the full inspection mission at that site. It's surrounded by plumes of black smoke because of artillery. And the Ukrainian offensive trying to take towns around the crash site -- Christine.

ROMANS: And, quickly, this report there could be land mines, have you seen evidence of that?

WALSH: I mean, it could be. It's a war zone. There could be land mines all around the area. They can be far in positions, too, like the Ukrainian government claims.

But we actually, ourselves saw no evidence of land mines at all, just separatists in small numbers actually waving us through, allowing us access.

We are told by locals there could be mines in the field. We haven't seen evidence of that -- Christine.

ROMANS: Be careful. In Donetsk, Ukraine, thank you for that.

Amazing what Nick was able to see in a small car winding through those quiet fields, of course. He got, you know, took a risk and got out there and took some pictures for us.

BERMAN: An important perspective. You want a different perspective on all of this? If you ask the Russian people who shot down Malaysian Airline Flight 17, most of them say it was Ukraine. An independent poll revealing that 82 percent of Russians believe it was taken out by a Ukrainian missile or a Ukrainian military jet.

Meanwhile, the Russian government is showing scorn for the economic sanctions imposed by the best. The Russian's stock market and its currency rallying. Investigators seemed relieves that the sanctions did not target Russia's critical gas industry.

I want to go to Moscow and bring in Nic Robertson. He's been watching all of these developments.

And, Nic, so far, the sanctions not seeming to faze the Russian people either economically or politically.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes. And as you say, nothing but scorn, which is interesting. It's all words. With one senior Russian politician said that President Obama is responsible for restarting the Cold War.

What we are not seeing is any big action being taken against U.S. or European companies here trying to shut them down or limit their operations. That isn't happening, nothing big and publicly spoken by President Putin, either. That, I think, is a telling situation. What we do have today, however, is a team of Russian aviation experts.

The head of their own investigation team investigating into what's happening into MH17. They sent that team to Ukraine. They are in Kiev.

They told us they believe that team will be able to get to the crash site today. They are presenting Russia's findings about what brought down that Malaysian aircraft, presenting those findings to the head of the international investigation today as well.

But we are also hearing from the foreign ministry here, this may become sort of one of the bigger narratives from Russia in the coming days. The foreign ministry is calling for a full humanitarian disaster management situation to be created in the eastern Ukraine, to head off what they believe is impending humanitarian disaster. They are calling on the U.N. They are calling on the International Red Cross, and a lot of different international agencies to get involved to set up a humanitarian crisis management area in the east of Ukraine.

That, alone, if they got what they wanted and there's no indication they will, would be quite a development, stalling, if you will, military activity on the battlefield. But that's a long way down the road. But that does seem to be what they are pushing for there, John.

BERMAN: Interesting to see what develops with that. Nic Robertson in Moscow for us, thank you so much.

ROMANS: All right. The deadliest Ebola outbreak ever, spreading. This morning, communities shutting down the Peace Corps, pulling out of danger zones as two more Americans come in contact with Ebola.

BERMAN: Plus, House Republicans taking President Obama to court. We'll explain, next.

(COMMERCIAL BREAK)

ROMANS: Seventeen minutes past the hour.

This is just in to CNN, Israeli Prime Minister Benjamin Netanyahu telling his cabinet, Israel needs to break Hamas' ability to kidnap and murder Israeli civilians and there will be no cease-fire until all Hamas tunnels have been dismantled. Netanyahu said this is just the first phase of the demilitarization of the Gaza Strip.

BERMAN: More big news for you this morning. The Peace Corps moving hundreds out of volunteers out of West Africa, over fear of Ebola. Three hundred and forty members have now left Liberia, Guinea and Sierra Leone. This as two Peace Corps volunteers have been placed in isolation after being in contact with a person who later died of Ebola.

In the meantime, we are hearing from a son of an American woman infected with the virus. Nancy Writebol contracted the disease while helping a missionary in Liberia.

(BEGIN VIDEO CLIP)

JEREMY WRITEBOL, MOTHER CONTRACTED EBOLA: Dad's visits with mom right now are through a window at the home where mom is isolated. He's in a containment suit. The Ebola virus, in terms of mortality rate, right now, is about 64 percent. And so, that's good news for us. We feel like that's -- mom has a chance.

(END VIDEO CLIP)

BERMAN: This virus has now killed 670 people and sickened hundreds more.

The Republican-led House voting to authorize a lawsuit against President Obama, claiming he overstepped his constitutional authority in how he dealt with the Affordable Care Act. House Speaker John Boehner says the president broke the law circumventing Congress and failing to implement parts of this law. The president dismissing the lawsuit as a political stunt.

ROMANS: All right. Time for an EARLY START on your money.

Asian stocks closed mixed. But European stocks have turned lower. And look at U.S. stock futures. It looks like it could be a rough morning for stocks in what's been a good month. We have, you know, stronger economic news yesterday. We have the jobs report tomorrow.

But you're having a stumble here at the open. This is what July looks like, the Dow and the S&P up, the NASDAQ up more than 1 percent this month.

Also happening this morning, Argentina is in default. Last minute talks failed to produce a deal with the country's bond holders demanding payment overnight. Now, Argentina has defaulted for the second time in 13 years. The change in its credit rating will mean higher borrowing costs. That puts pressure on Argentina's struggling economy.

Stocks in Argentina actually up. It looks like investors were not surprised by the looming default there.

But watching the Dow futures here, down 117 points right now. We'll watch carefully to see if that worsens close to the opening bell.

BERMAN: In Argentina is fascinating -- it's a country versus a hedge fund.

ROMANS: Yes, it's really interesting.

BERMAN: And the hedge fund may win.

ROMANS: The hedge fund may win, but what happens to the people of Argentina? That's the big question.

All right. A busy California shopping center parking lot becomes a runway when a plane crashes. What happened next? After the break.

(COMMERCIAL BREAK)

BERMAN: An investigation is under way this morning after a small plane crashed in a San Diego shopping center killed an 80-year-old passenger. The pilot is recovering this morning at an area hospital. Witnesses say the plane bounced while landing at a nearby field and then clipped the top of a Target store before crashing into the parking lot.

(BEGIN VIDEO CLIP)

VINCE CARTER, WITNESS: We were taking off about the same time she was on a different runway and we heard her say she was having issues with her power, and then a few seconds later, she said she was going down. We saw the smoke right afterwards. I mean, we saw her taking off. For the time, we saw her airborne until the smoke could have only been 15 seconds or so.

(END VIDEO CLIP)

ROMANS: No one on the ground, thankfully, was injured.

BERMAN: Amazing.

Let's get a look at the weather for today. Indra Petersons is here with that.

INDRA PETERSONS, AMS METEOROLOGIST: Couple of chances for showers. Good morning. Just jumping the gun on you, Christine.

There's so much we want to talk about. A lot of variety is out there. We are looking at this low right here producing a couple waves of energy that will produce showers in the Ohio Valley, and in the Northeast over the next several days.

And then, as we get closer to the weekend, the warm front off the coast is actually going to back in, which means it warm showers will be there on the entire Eastern Seaboard as we head through the weekend. So, this kind of rainy pattern is sticking around for us.

The threat for severe weather, that is out there, especially towards New England. So, we are watching for that. But the really heavy rain, that steady, heavy rain is near the ArkLaTex, about two to five inches of rain expected in that region. The bigger story, is this cool air. I mean, we're talking about temperatures right now, 50s and 60s. But 10 degrees below normal, this morning hours, even through Florida. That's how far south this air is.

You may say, OK, it's 80s, this isn't cool. By the way, these are the temperatures we see in October if you are in Memphis. So, definitely fall-like conditions are what we are seeing for several days. That's what's in the forecast. We do end on a good note, so far. We've actually seen the chances decrease for what we are looking at in the Atlantic. Nonetheless, still a 60 percent chance to see development here.

But even the better news, right now, all the models are showing it's expected to curve out to sea. Of course, it's a long way to go. Definitely a better outlook today than yesterday.

BERMAN: Well done. Thanks, Indra. Appreciate that.

Twenty-six minutes after the hour. Gaza in ruins. This morning, world leaders watching this crisis unfold as Israel and Hamas step up their attacks. More civilians getting caught in the crossfire. We'll have live team coverage, next.

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