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Early Start with John Berman and Zoraida Sambolin

Ceasefire in Gaza Holding for Third Day; Egypt's Negotiating Peace between Hamas and Israel; Gaza After Hostilities; CDC's Issued Highest Alert for Ebola Virus; Putin Amasses Troops on Russian- Ukrainian Border as Fighting in Donetsk Intensifies; Trials of Oscar Pistorius and Detroit Porch Shooting Under Way; Bowe Bergdahl Questioned by Army Officials

Aired August 07, 2014 - 04:00   ET

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


POPPY HARLOW, CNN ANCHOR: Happening now, silence over Gaza. As Israel and the Palestinians work towards a lasting peace. Delegations from both sides in Cairo this morning. This, as Hamas plans to rally on the broken streets of Gaza. Live, team coverage on this very latest at this critical moment this morning.

And Ebola emergency. The deadly virus spreading fast across Africa. Quarantines, travel bans not enough to stop it. Here in the United States, the CDC issuing its highest alert as two infected Americans recover in a Georgia hospital. The very latest on that outbreak straight ahead.

Good morning, everyone. I'm Poppy Harlow. It is Thursday, August 7TH. I'm here on the East Coast. Up first, the ceasefire in Gaza now in the third day. And it is holding. Egyptian mediator is planning to shuttle between Palestinian and Israeli delegations trying to hammer out a truce. The one in effect right now expires in just 21 hours. U.S. Secretary of State, John Kerry urging Israel and the Palestinians to negotiate a permanent two-state solution. Let's go straight to Cairo and bring in Reza Sayah. Good morning to you, Reza. When you hear that trying for two-state solution, I mean how long have they tried? On the ground there, what is the sense that you are getting? Because we are really hearing different things from the Israelis? It sounds like they are willing to extend this. Hamas. It's unclear.

REZA SAYAH, CNN CORRESPONDENT: Yeah, and it looks like these particular negotiations within the ceasefire are hitting an impasse. I think everyone knew these are going to be difficult talks. Both sides coming here with demands not backing down. But essentially, what we have had here in a nutshell is that the Israeli delegation seems to be pushing to extend the ceasefire past 8:00 a.m. Friday. However, at least some members of the Palestinian delegation are not on board, notably, Hamas, who has been doing the fighting in Gaza. Essentially, they are saying they don't want to extend the ceasefire. They came here for a permanent solution to the conflict and that's where things seem to be stuck. What could pose a problem for the Palestinians is that some delegates seem to be OK with a ceasefire that could cause divisions. Here is chief negotiator Saeb Erekat on the challenges of the talks so far.

(BEGIN VIDEO CLIP)

SAEB EREKAT, PALESTINIAN CHIEF NEGOTIATOR: We are working so hard now. We are working so hard the president of the Palestinians, Mr. Mahmoud Abbas, myself and through the good offices affair, the Secretary of State John Kerry, who's exerting every possible effort, and in weavering commitment getting in touch with all parties involved, including sometimes six or seven times a day. Just doing nothing short of trying to get an open-ended ceasefire.

(END VIDEO CLIP)

SAYAH: That was Saeb Erekat, the Palestinian chief negotiator. It's been tough to monitor - engage these talks. Because they have been held in secret. But what is clear is that these two sides have yet to tackle the core issues to try to find a permanent resolution. They are only talking about the parameters of the ceasefire, perhaps extending it, Poppy, and of course some Palestinian delegates saying they don't want that returning to the status quo. It's a win for the Israelis. Some Palestinians saying they have simply lost too many lives in Gaza to return to the way things were. So, it's a chess match and the clock is ticking until Friday, 8:00 a.m. local time. We'll see where things go today.

HARLOW: Right. Absolutely, Reza, and when you look at those key demands, the key demand on the part of the Israelis is for Hamas to completely demilitarize, which to many sounds unlikely and then you have also got Hamas demanding that Israel, you know, allow them to open up those borders, allow much more to come into the country that hasn't been able to come in, because, you know, Israel is very concerned in terms of weapons being smuggled in. So, these are the two key sticking points. And if they can't both get what they want, do you expect that in 21 hours' time we could the bombardments begin again? Do you get that sense on the ground?

SAYAH: I think the sense you get on the ground here, based on what we have observed of the past 48 hours is that the only possibility is an extension of the ceasefire past 8:00 a.m. local time on Friday. These two sides have yet to tackle these core issues and core demands. And that's what's troubling and a big indication of how complicated these talks are.

HARLOW: Yeah. Incredibly, incredibly complicated. Let's hope that at least the ceasefire can be prolonged. Appreciate you reporting live from Cairo for us. Reza Sayah, thank you.

Israel's month-long offensive on Gaza left nearly 2,000 people dead and more than $4 billion in infrastructure damage behind. U.N. chief Ban Ki-moon declaring his organization stands ready to help the rebuilding of Gaza with a warning. This will be "the last time." The Israelis continuing to hammer Hamas for the hundreds of civilian casualties, Prime Minister Benjamin Netanyahu insisting Israel's assault on Gaza was proportional and justified.

(BEGIN VIDEO CLIP) BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: The tragedy of Gaza is that it is ruled by Hamas, a tyrannical and fanatical terror group that relishes civilian casualties. They want civilian casualties. They use them as PR factor (ph).

(END VIDEO CLIP)

HARLOW: Meanwhile, Hamas is calling for a rally in Gaza City today. Let's go straight to John Vause. He's live from Gaza. And you know, John, we heard from President Obama here Eastern time yesterday evening. Basically, reiterating what we heard from Netanyahu, really condemning Hamas saying I have no sympathy for Hamas, also saying it is important to remember Hamas acts extraordinarily irresponsibly when it deliberately is siting rocket launchers in population centers, saying they are using human shields. On the ground there in Gaza, what is the sense that you are getting as people over these past few days of a ceasefire tried to get back to their homes, if they are even still there?

JOHN VAUSE, CNN CORRESPONDENT: Yeah, well, Poppy, look, what we have heard from Hamas repeatedly is that, you know, they do not use civilians here as human shields and they do hide these missile launchers in urban areas, because, they say, there really is nowhere else to put them. We know time and time again, we have heard that this is a very densely populated part of the world, there are no mountains or jungles from Hamas to fight from. So, they engage in this urban warfare. We have heard the missiles being launched from civilian areas, we've seen them fly overhead. So, we know that they are using these areas. In fact, we have seen some of the rocket launchers in areas, which are surrounded by homes, as well as hotels. So, as far as Hamas is concerned, they placed those weapons there because that is what they do. What was interesting is that a senior commander from Islamic Jihad, who was buried yesterday, at his funeral, they are asked, a number of people were asked, that, you know, about these claim of human shields. And while they denied it, they do go on to say that, you know, the people support them and they know what they have to do. So, the implication there is that, you know, the people here support the resistance as they call it against Israel and they are willing to deal with these rocket launchers and these weapons stockpiles, which are hidden in these areas. But, you know, my experience has always been when you go out and you talk to people in these areas, which are being leveled by the Israelis because this is where the rocket fire is coming from. And when you ask them, Hamas - with the last rocket launchers here, were there any Hamas fighters here, they deny it. Whether they deny it because they generally say they never saw anything or whether it's because they are not willing to admit it. I guess, make up your own mind. But essentially, it's no secret, really, that this is what's been going on.

HARLOW: And there's also a sense, John, as you and I have been talking about over recent weeks, as the death toll rises, there's a sense that people are getting more entrenched. And saying, if we give up now, you know, much of this has been in vain, what have all of these people died for. This rally that is happening on the streets of Gaza by Hamas, what is the message? What are they trying to accomplish with that?

VAUSE: Well, exactly. The longer this is going on, the bigger the death toll, the more the destruction is, the more it seems that even moderates here like a doctor at the Shifa hospital who we spoke to a few days ago who said for the first time, that he wants this war to continue because he wants it to be for something. Because such a high price has already been paid. And I think we are seeing that claiming played out right now in Cairo. With these ceasefire negotiations. While the Israelis have agreed to an unconditional ceasefire, Hamas continues to put on the table their key demand, which is an ending of the economic blockade by Israel and they want the borders to be reopened.

My understanding from sources within Hamas is that they don't expect resolution on those issues by 8:00 tomorrow morning local time. But what they want to see happening in Cairo right now is progress toward that. And that's not happening, at least according to Hamas. Now, whether the Israeli team there is authorized to negotiate those bigger - issues or whether or not that Israeli team there is simply there to negotiate an extension, an unconditional extension of the ceasefire which they have agreed to, is unclear. But what we are hearing and has been reported, that a senior military member from Hamas has actually threatened to walk out of those talks unless there's progress, unless those issues are on the table and unless they start talking about them now. So, I guess we are looking at an issue of sequencing here. When do you start these talks? Hamas wants those talks to begin right now. Military commander is threatening to walk, if it doesn't happen. Whether that's a negotiating ploy, whether that's a genuine threat, we will probably know by this time tomorrow. Poppy.

HARLOW: Yes. We probably will. I appreciate the reporting. We'll go back to you later on this show. John Vause live in Gaza for us. Thank you.

Turning now to the widening Ebola crisis. The CDC issuing its highest alert. Level one, reserved for only the most serious public health emergencies. It's an all-hands on deck response to the deadly virus in West Africa. President Obama is doing what he can to try to calm nerves.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: Despite the fact that we have to take this very seriously, it is important to remind ourselves, this is not an airborne disease. This is one that can be controlled and contained very effectively, if we use the right protocols.

(END VIDEO CLIP)

HARLOW: Meantime, the FDA has okayed the use of an unapproved test for Ebola, but a vaccine to combat this fast spreading virus is at least a year away. As for the two Americans infected with Ebola, they are showing signs of recovery as they are treated in an Atlanta hospital after receiving an experimental serum. In West Africa, the Ebola virus is spreading with alarming speed. Over 1700 suspected or confirmed cases now. In Guinea, Liberia, Nigeria and Sierra Leone, with well over half. 932 of them proving fatal. In Sierra Leone and Liberia, state of emergency has been declared, troops being called in now to quarantine the Ebola victims. The impact of the outbreak is being felt globally. A man in Saudi Arabia has died after visiting Sierra Leone on a business trip. There is testing under way at this hour to see if that really was Ebola that killed him.

Also, Spain Air lifting an Ebola-stricken 75-year-old priest out of Liberia and back to Europe for treatment. He arrived in Madrid just about one hour ago.

We are also learning more now about the death of U.S. Army General Harold Greene. That happened, of course, in Afghanistan when he was gunned down by an Afghan soldier who turned on coalition troops visiting an army training academy in Kabul province. Officials say Greene was outside of the facility when the gunman opened fire from inside a building just 100 yards away. Reports say the attacker hid in the bathroom before that attack and used the NATO machine gun. As many as 17 others were wounded later this morning. The dignified transfer of General Greene's remains will take place at Dover Air Force Base in Delaware. He is the highest ranking U.S. officer killed in the war zone since Vietnam.

And Army Sergeant Bowe Bergdahl will be questioned for a second day about his disappearance from him combat outpost in Afghanistan back in 2009. Berdahl's talking to Major General Kenneth Dahl who is leading the army's investigation on this. Bergdahl was held by the Taliban, as you know, for five years before his release back in May in a swap for five senior Taliban prisoners. Some of the soldiers who served with Bergdahl claim that he deserted their unit.

And President Obama is set to sign a $16 billion bill to revamp the VA health system today. The bill passed Congress last week with wide bipartisan support. And it provides money for veterans to get health care outside of the VA system and also pays for additional doctors and nurses for providing a lot more oversight for those VA facilities.

All right, time now for an early check on your money before the market opens here. In Europe, markets really continue to tumble, opening the day lower. In Asia, stocks ended the day mixed. Here in the U.S., well, futures are pointing to a higher open right now. Stocks did manage to snap a long losing streak yesterday, but really just eked out tiny gains. Some turns on Wall Street are driving investors to the safe haven of bonds, yields on the ten-year treasury near their yearly low of just 2.4 percent.

Meantime, big headline on Wall Street. Bank of America gearing up to pay the biggest mortgage fraud settlement on record. A person familiar with this deal tells CNN Money that the bank has tentatively agreed to pay the U.S. Justice Department more than $16.5 billion. That is more than the $13 billion settlement JPMorgan paid last year for similar charges. Both banks are accused of misleading consumers about the quality of those mortgage -backed securities in the run up to the financial crisis. There is, though, no formal announcement expected this week. We will keep you posted on that. All right, coming up here on "Early Start, "Ukraine in crisis, more

raging between its military and pro-Russian rebels. As the mounting threat builds right on the border, is Russia preparing to invade? We'll take you live, next.

(COMMERCIAL BREAK)

HARLOW: The Obama administration growing increasingly concerned about a possible Russian invasion of Ukraine. 20,000 Russian troops are now stationed along the border with Ukraine armed with mobile missile systems and also heavy artillery. Secretary of Defense Chuck Hagel warning an invasion is a real and growing possibility. President Obama holding firm claiming U.S. military aid is not needed in Ukraine. He is insisting that the sanctions are doing their job by slowly crippling the Russian economy. Let's go straight to Nick Paton Walsh in Donetsk Ukraine. Nick, that doesn't seem to be the interpretation, at least, by Vladimir Putin as he amasses these troops on the border.

NICK PATON WALSH, CNN CORRESPONDENT: Well, certainly, with all those troops who actually get end up doing and Vladimir Putin's major response, actually, to sanctions against Russia is to, in fact, try and sanction European goods back, yet specified list of European products that won't be allowed into Russia. Some Russian commentators saying, actually, that's Putin sanctioning his own people in punishment for what Europe's doing back to Russia because of their actions supposedly in Ukraine. But Poppy, you join me at a very tense morning here in Donetsk. Dawn brought pretty intense shelling to the north of the city and now we are hearing from the local government here, that's the pro-Kiev local government still in position. That they are warning people to stay off the streets near what's known as the Security Service building here, which is being taken over by separatist militants as the headquarters. Reports of shelling around that. Locals told to stay off the streets, be careful what you do, stay away, if possible. A sense day by day that the Ukrainian military is moving in. If indeed they are shelling that Security Service building that will severely rattle the militants left inside here. They have, since the start, wanted Russian military help. That has not come. The question you have to ask, is Vladimir Putin willing to take, frankly, the humiliation of seeing the separatist movement here crushed by the Ukrainian army? Will he use those troops across the border to assist them in some way or has he really reached the limits of the power he is willing to project because of the effect of Western sanction on the Russian economy? Poppy?

HARLOW: Nick Paton Walsh, live for us in Donetsk. Appreciate your report, Nick, thank you.

All right, closing arguments beginning moments ago for an Olympic runner accused of murdering his girlfriend. What is happening in court right now? We will tell you ahead. Also, breaking news overnight. Drastic measures being taken to fight Chicago's crime crisis. And a primary election today pitting Sarah Palin against the GOP. What is that all about? We'll explain next.

(COMMERCIAL BREAK) HARLOW: Closing arguments are under way in the Oscar Pistorius murder trial. The prosecution is making its case first followed by the defense. There is no jury in South Africa, so it will be a bench decision. Up to the judge to decide Pistorius's fate. The blade runner claims he shot and killed his model girlfriend, Reeva Steenkamp by accident thinking she was an intruder in their home. The trial began back in March and it has been delayed several times.

We are also waiting for a verdict in the Detroit porch shooting trial. Jury deliberations began yesterday in the trial of 55-year-old Theodore Wafer. He's charged with second degree murder for shooting and killing 19-year-old Renisha McBride, an unarmed woman who knocked on his door in the early morning hours in November after crashing her car nearby. If convicted, Wafer could be sentenced to life in prison.

Desperate measures to try to combat crime in Chicago. 40 Illinois state troopers called in to join police officers for patrols in Chicago neighborhoods. The order announced by Governor Pat Quinn yesterday will focus on catching wanted fugitives with known violent criminal backgrounds. The troopers are set to remain in Chicago for at least the next month.

And last call for the Tea Party. In this case, today's Republican primary in Tennessee is the last chance for conservatives aligned with Tea Party groups to unseat a GOP incumbent senator in this primary season. Two terms senator Lamar Alexander is being challenged by Senate Representative Joe Carr, who is being supported by Sarah Palin.

And Mississippi's Republican Party rejecting a request to overturn Senator Thad Cochran's primary run-up victory over Chris McDaniel. Party officials suggest that McDaniel would do better to try to take his challenge to court. Something he's talked about doing and he's trying to raise money to do. McDaniel had asked the party to declare him the nominee claiming Cochran's 7,000 vote margin was due to what he calls Democratic voters who he says illegally cast run-off ballots for the six term incumbent. That fight is certainly not over.

All right, happening now, the last day of a temporary ceasefire in Gaza. This morning, negotiators trying to work out a long-term peace plan. But can Hamas and Israel find common ground? We'll give you live team coverage, next.

(COMMERCIAL BREAK)