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Early Start with John Berman and Zoraida Sambolin

Cease-Fire in Gaza; Ebola Rapidly Spreading in Africa; General Motors Subpoenaed

Aired August 05, 2014 - 04:30   ET

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

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN breaking news.

DEBORAH FEYERICK, CNN ANCHOR: We have breaking news this morning. Silence over Gaza. That's a big deal. A three-day truce between Hamas and Israel, it has begun. The peace following a last-minute burst of violence. Both sides are firing, just before it begun. Now, this morning, many are wondering -- can the cease-fire actually hold?

We have a team of reporters covering every angle of our big story this morning.

JOHN BERMAN, CNN ANCHOR: Ebola outbreak. Two affected Americans receiving an experimental drug as one recovered here in the United States, the second set to join him in hours. This, as Africa reels from the outbreak moving across the continent, and a new Ebola scare emerged in New York City.

Welcome back to EARLY START, everyone. Great to see you today. I'm John Berman.

FEYERICK: And I'm Deborah Feyerick, in for Christine Romans. It is now 31 minutes past the hour. And we welcome all our viewers here in the United States and around the world. Thanks for joining us.

All is quiet in Gaza. A cease-fire now in its fourth hour. Israel and Hamas pressing pause on the bloodshed that has crippled that area, halting a month-long conflict that has killed nearly 2,000 people. Both sides are conceding that keeping the peace is not going to be easy.

Meanwhile, Gaza is in ruins, one-fourth of its population has been displaced. And according to the U.N., infrastructure damage from the Israeli onslaught and bombardment now tops somewhere -- $4 billion.

Karl Penhaul in Gaza this morning with the latest on the cease-fire.

And, Karl, you are seeing lot of people -- they're going back to their homes. They're trying to find some belongings. Do they feel that this was a win for them in terms of either the way it was perceived internationally or the fact that now Israel appears to be coming to a negotiating table? KARL PENHAUL, CNN CORRESPONDENT: I think, Deborah, it is way too

early for that. One man, as he walked down this street. This street is called Hill Street. He said to me, I feel like I'm in a dream. Neither he nor his neighbors could clearly absorb what they were seeing. They had come home, thanks to this cease-fire which right now appears to be holding, he found he had no home to come to.

And so, it's not sunk into him, yet. He looked at his home and he said, please, you know, tell the Israeli Prime Minister, Mr. Netanyahu, tell him he has won. Tell him he has won this war. And then, he pointed and he says, tell him, he has won this.

Of course, he was being heavily ironic. He then went on to explain to me, his home, his family over the years have invested about $100,000 building that home. There is no insurance company here. So, that is going to have to come out of him and his family's pocket some time in the future. He really knows not how he is going to be able to rebuild.

In fact, the United Nations estimate is it could take Gaza 30 years to rebuild after this kind of damage. So, certainly, right now, nobody is really genuinely in the balance saying Hamas has won or Israel has won. Right now, they are saying that the problem is just starting, that they have a humanitarian crisis on their hands. They have no homes to go to. They have no idea what the future holds -- Deborah.

FEYERICK: It's going to be interesting to see what the international community does to help these people in the region rebuild. Perhaps it will happen sooner, and not on that 30 years you mentioned.

Karl Penhaul for us in Gaza -- thank you.

BERMAN: This morning, Israel has pulled its troops out of Gaza. It is also claiming it achieved most of its objectives. As we said, this operation winding down. The Israeli troops withdrew over the last 24 hours. Israeli defense officials insisting that most of the Hamas tunnels have been destroyed, while its military capabilities have been crushed.

I want to bring in Matthew Chance now live from Jerusalem.

And, Matthew, I just saw a tweet by the IDF spokesperson who said, mission accomplished. Interesting choice of words from Israel about this effort.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I mean, it's a classic tactic, isn't it? To declare victory and then leave, and that seems to be what the Israelis are doing. They are saying that they've destroyed 32 tunnels. The number of tunnels they said they identified and it set out to destroy, they said, basically, they have achieved their military objectives.

Although in the minutes before the cease-fire came into force three and a half hours ago, there was, in the words of Israeli defense officials, a massive barrage of rockets coming from the Gaza Strip into -- particularly areas in southern Israel, indicating that, you know, perhaps the Palestinian militants are still able to fire rockets into the country, if they choose to do so.

Nevertheless, it seems both sides in this conflict have made the calculation, the decision that they're not going to gain much more from continuing to fight. It seems that both sides, for the moment, it's been three and a half hours now, are sticking to the cease-fire. The next stage, John, is will there be peace talks in Cairo. That was the other part of the Egyptian proposal, parties come to Cairo and they hammer out an extension, a more permanent agreement to bring to an end the violence that has been so brutal and bloody in Gaza over the past four weeks -- John.

BERMAN: What kind of indication has Israeli given about whether it will send delegation to Cairo to engage in these talks?

CHANCE: Well, it's saying it's going to watch and see how the situation develops. If the cease-fire sticks, if it holds, if there are no further rocket attacks against, from the militants, no further attacks against Israelis by Palestinian militants, then, of course, those would be the circumstances in which they say they'd send a delegation. But in terms of where the delegation is now, whether they'd been sent or not, Israel is not clarifying that. But they're going to wait to see if the cease-fire holds. If it does, they will send delegation.

So, it seems Israel and the Palestinians in this issue, both very serious indeed about trying to come to a more permanent agreement.

BERMAN: It does seem there is a window of opportunity for both sides.

Our Matthew Chance in Jerusalem -- thanks so much for being with us.

And as Matthew just mentioned, these peace talks are set to begin in Egypt. We have our Reza Sayah there monitoring every development. He'll join us later this half hour to discuss what these talks will look like.

FEYERICK: It will be interesting to see.

And health officials are waiting for test results on a patient with Ebola-like symptoms. The man was quarantined after telling doctors that he got sick after returning from West Africa. But officials at Mount Sinai Hospital say that it's not likely a case of Ebola. They are trying to play down the drama.

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UNIDENTIFIED MALE: I think the most important thing is people should understand, if this were a case of Ebola, which we do not know, that it is not transmitted by casual contact. And everything that happened in Mt. Sinai happened in a very rapid fashion, such that we were certain that the patient did not pose risk to other patients, or to our staff or to visitors to Mount Sinai.

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FEYERICK: And doctors expect lab results in the next few days. They say there really wasn't a real threat to anyone else in the hospital because of the quick response.

BERMAN: A second American infected with Ebola is on her way back to the United States this morning. Nancy Writebol has been evacuated from Liberia and will receive treatment at the same Atlanta hospital as her colleague, Dr. Kent Brantly. Brantly arrived at the Emory University Hospital over the weekend and is already said to be improving.

Both Brantly and Writebol were treated in Liberia with an experimental drug not yet approved for use. This drug is being developed by a U.S. company. But doctors say, a clinical trial that includes more patients would be needed to demonstrate its safety.

FEYERICK: And meanwhile, the Ebola virus is rapidly spreading in West Africa. Nearly 1,700 people have been infected with it since detected in March with over 800 deaths, spanning Liberia, Sierra Leone, Guinea and Nigeria.

And according to the World Health Organization, the death rate stands out 55 percent of those infected. Hundreds of troops now deployed to quarantine infected communities. And the World Bank is pledging up to $200 million in emergency aid to fight the spread of the virus.

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JIM YONG KIM, PRESIDENT OF THE WORLD BANK: This is the largest epidemic ever. It's in three countries, extended to the capital cities. And as predicted, the mortality rate is upwards to 60 percent, 70 percent. This is a serious epidemic.

The good news is, there are things we can do right now to lessen the impact, to prevent the spread. And moreover, this is a wake-up call. We need to build that public health infrastructure. We are going commit to doing it.

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FEYERICK: There is no known cure for Ebola.

BERMAN: I want to bring in Alison Kosik right now.

Alison, you've been looking at the scale of this effort to this bring these two Americans back to the United States.

ALISON KOSIK, CNN CORRESPONDENT: As far as we can tell right now, no U.S. government dollars have been used to bring these two infected folks over to the U.S. In fact, a charitable organization is actually picking up the bill. It's called Samaritans Purse. That's the organization that Dr. Kent Brantly works for.

Now, the company is going to be covering both Brantly and Nancy Writebol's flights from Liberia to the U.S. And by one estimated, a chartered flight costs about $220,000, and then you have to tack on tens of thousands of dollars more to keep them isolated while they're on the flight over to the U.S. Now, Samaritans' Purse is also picking up Brantly's medical costs.

CNN actually spoke to one of his doctors at Emory, who is actually treating him right now. And what he told us is that it doesn't cost anymore to treat him in the isolation unit at Emory University Hospital than it would in a normal hospital room. He's getting fluids and the experimental serum right now.

One interesting tidbit for you, those isolation rooms at Emory University were built actually 12 years ago. And that this is only the second time that they are being used.

OK, let's take a quick look at stocks. European shares are higher right now. U.S. futures, they are pointing slightly higher as well.

We'll see if stocks agreeing when the opening bell rings.

FEYERICK: Yes, interesting. I hope the isolation rooms have been maintained.

KOSIK: I'm sure they have. It is one of the most sophisticated in the country.

FEYERICK: Of course. Interesting, it's only the second time used. OK.

BERMAN: Thanks so much, Alison.

KOSIK: Sure.

BERMAN: Forty-one minutes after the hour.

Freed after years in Taliban captivity, we know when Sergeant Bowe Bergdahl will answer questions about how he managed to be captured in Afghanistan.

FEYERICK: Plus, flash floods across the U.S., deadly storms leaving communities under water. That's next.

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FEYERICK: No end to the violence in Iraq. Country's prime minister ordering its air force to support Kurdish troops in their battle with Sunni extremists. It is the first time that the Kurds and Iraqis have joined forces since the extremists captured the city of Mosul back in June. Kurdish groups were just soundly defeated by militant forces who took over three towns in northern Iraq this weekend.

BERMAN: Pretty disturbing developments along the Russian-Ukraine border. U.S. officials say the Russians have doubled the number of battalions they have stationed there and could launch an incursion with very little warning. About 20,000 troops assembled along with 14 surface-to-air missile units, close to three dozen artillery batteries.

FEYERICK: And Sergeant Bowe Bergdahl is about to come face-to-face with the army general investigating his capture by the Taliban. Two- star General Kenneth Dahl will handle the questions when he sits down with Bergdahl tomorrow at Ft. Sam Houston in San Antonio. Many of Bergdahl's fellow soldiers accuse him of being a deserter. Bergdahl was freed after five years of captivity during a controversial prison swap that led to the release of five high-ranking Taliban members.

BERMAN: We're finding out more about the controversial two-hour execution of an Arizona inmate last month. Joseph Wood took 15 doses of a lethal untested drug cocktail before he was pronounced dead. According to the state's Department of Corrections, the July 23rd execution was the first in Arizona to use a new combination of drugs. Wood was convicted for the 1989 killing of his former girlfriend and her father.

FEYERICK: And Jodi Arias, the name we haven't heard in a while, has her life in her own hands now. Not the way you expect. A judge in Phoenix granting her request to represent herself in the penalty phase of her murder trial. Arias could get death for killing her ex- boyfriend back in 2008. She was convicted last year, but the jury couldn't decide if she deserved to live or die. The judge warned Arias that defending herself is a bad idea. She's got no legal experience and never graduated from high school.

BERMAN: It is safe to drink the tap water in Toledo, again, so they say, at least for now. But scientists say toxic algae blooms in Lake Erie are likely to persist and the problem could return. City managers have added more activated carbon and chlorine to the water supply. But the bloom is expected to peak in September and could affect the drinking water in other nearby towns as well.

FEYERICK: And extreme weather from coast-to-coast. Look at this scene from Las Vegas. Las Vegas! It is supposed to be dry there. Well, heavy rains flooding roads, leading to dozens of accidents. Cars literally washed off into the streets. Some highways had to be closed in both directions because of mudslides and rising water.

BERMAN: Flash flooding also a big problem on Florida's Gulf Coast. Six inches of rain falling in Naples, making Monday the wettest August day in city's history. The Collier County sheriff's office declaring a civil emergency. Four dozen people stranded in their vehicles by these floodwaters.

You should not be driving through water like that.

FEYERICK: Yes, definitely not. Hello, it's rising.

Well, back to our big story this morning. Silence over Gaza. Israel and Hamas agreeing to a three-day truce. But can a permanent peace deal be worked out? Negotiators set to gather in Cairo. We're going to take you there live right after this.

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BERMAN: A 72-hour cease-fire in Gaza appears to be holding this morning. It began nearly four hours ago. Hamas and Israel agreeing to this truce after one last flurry of deadly violence. Israelis winding down their operation in Gaza, withdrawing most of their ground troops, claiming virtually all of the Hamas tunnels have now been destroyed.

FEYERICK: And the road to lasting peace in Gaza may lead through Egypt. Negotiations set to take place in Cairo. Israel plans to send a delegation only if the cease-fire holds. The Palestinians already have a team of Hamas and Islamic jihad on the ground.

Let's get the latest from the negotiations.

Reza Sayah live from Cairo this morning.

And, Reza, what is the possibility the Israelis, do you think they are going to delay sending somebody there to Cairo?

REZA SAYAH, CNN CORRESPONDENT: That's not the indication at this point, Deborah. They have made it clear, if this cease-fire holds, they will be sending a delegation. At this point, they haven't made that move, yet.

But in the coming hours and coming days, all eyes are going to be on Cairo to see if this Egyptian brokered cease-fire holds and you get the sense this is a real opportunity this time, for these two sides to get to Cairo and negotiate. And as with any negotiations, if they do happen, both sides are going to need to compromise and maybe, most importantly, they're going to need to ease the emotions and ease the anger and maybe that's going to be the toughest thing to do during this cease-fire.

But, the Palestinian delegation, we can tell you, they are already here. This is a delegation that arrived over the weekend and crafted the cease-fire proposal that was passed on to the Egyptians. The Egyptians conveyed it to the Israelis. The Israelis eventually said yes.

We understand, another three-member delegation representing the Palestinians and Hamas is on its way to Cairo from Gaza. The Israelis again have yet to arrive. They've said, we want to make sure the cease-fire holds, and then we will send our delegation for cease-fire talks.

We haven't gotten to that point, but you get the sense, Deborah, this time both sides are taking this matter seriously. Much of the world is watching, the staggering death toll. The disparity between the people killed in the Palestinian territories in Gaza and Israel.

Increasingly, they want the international community to do something to get the two sides to stop fighting, stop the killing and talk to one another. This seems to be an opportunity -- Deborah.

FEYERICK: Yes, absolutely. Talk about easing the anger. This is a decade or centuries of anger, and both sides still pointing the finger at each other. They're going to have to put it aside and look forward as opposed to back.

Reza for us, thank you there in Cairo.

BERMAN: Five minutes to the hour right now. More legal troubles for General Motors. Why the auto giant was subpoenaed by the Justice Department. That's next.

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BERMAN: It is time now for an EARLY START on your money with Alison Kosik.

FEYERICK: Hello. Let's take a trip around the globe. Come with me. Let's go. It's nice to do that.

Asian shares ending the day lower on slow growth in China's services sector. European shares are higher right now. U.S. futures, they are also pointing slightly higher this morning, after a pretty good day yesterday.

The Dow gained 76 points. But that did not make up for the big hit that stocks took last week. What it did do? Well, it eased investor concerns meaning a correction, meaning a 10 percent pull back. The thinking now is that maybe that's not around the corner.

Analysts are actually now saying investors aren't afraid to take out a little more risk. And with the market hitting new highs, they've been waiting for any sort of pullback to put more money in. Many say, OK, when you see that red, it's like a full scale discount sale.

The U.S. is digging into subprime car lending beginning with General Motors. The automaker disclosed it received a subpoena from the Justice Department. It covers documents related to subprime loan contracts since 2007. And according to "The New York Times", the Justice Department is looking at other companies over rising fears of the subprime auto loan bubble similar to the bad home loans that caused the 2008 financial meltdown.

Scrabble, do you play it? Well, they are jumping on the selfie phrase, 5,000 new words were added to the game's official dictionary. Those are the first additions in a decade. Now, they include the words hashtag, selfie and bromance. Yes, they're all fair game.

I think we have to keep a running list if you play game, though, to remember.

FEYERICK: I think your use of the word addictions was actually, right, because people who take selfies like can't do anything else. I'm talking little ones close to me.

BERMAN: First of all, A, I'm not so little. B --

FEYERICK: I'm not talking about you. I'm talking my kids.

BERMAN: Oh, your kids? OK.

KOSIK: I don't know how to make it look good. They say you put it up high. I never look good in my selfies. There needs to be like a practice session.

BERMAN: I feel like everyone needs just like a self-help session, like you need like therapy. You guys have issues I never knew about. It's amazing.

FEYERICK: Oh, yes.

BERMAN: Thanks so much, Alison.

EARLY START continues right now.