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Early Start with John Berman and Zoraida Sambolin

The Hunt for ISIS; Stocks at Record Highs; Michael Brown Investigation: New Recording; New Israeli Airstrikes

Aired August 26, 2014 - 04:30   ET

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

(COMMERCIAL BREAK)

CHRISTINE ROMANS, CNN ANCHOR: The hunt for ISIS. The U.S. sending new surveillance into Syria. The terror organization making gains in the war-torn country. Is it time to attack where the Islamic militants are strongest? This, as ISIS makes new gains in Iraq and pushes the country further toward civil war.

Live team coverage in London and Baghdad, ahead.

JOHN BERMAN, CNN ANCHOR: Breaking news overnight, a new audio recording that may have captured the moments that unarmed black teenager, Michael Brown, was killed by a police officer. Why this potential evidence is surfacing only now. That, as the community pays its final respects.

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

ROMANS: I'm Christine Romans. It's exactly 30 minutes past the hour.

A new front in the battle against ISIS militants. President Obama signing off on flights over Syria, concerned about the threat of ISIS. It could be a prelude to U.S. airstrikes on ISIS targets inside Syria. It comes as Islamist militants seized a key air base in the country. The Syrian government has signaled it is ready to accept support from the U.S. and others to fight them.

CNN's Nick Paton Walsh following developments for us this morning. He is live in London.

Good morning, Nick.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Christine, that decision by the United States to now authorize aerial reconnaissance, drones as well. But it may actually put in some degrees put the fear into ISIS. They haven't had to deal with much of an air force in the past.

But many of those militants experienced in Iraq during the American military presence there, perhaps knowing how to hide amongst the civilian population. So, certainly, it will put greater pressure upon them. But it's no easy task for the Americans. There's very little ability for them to insert spies, if you like, human intelligence on the ground, to back up what their eyes in the skies are telling them. And, of course, that's a prelude to airstrikes and nobody wants to call civilian casualties that can often cause local populations to turn against those drones in the sky and the government supporting them.

So, a complex task ahead certainly. But no U.S. official believes you can properly tackle ISIS, that most accept now is a threat to the United States -- just in Iraq, you have to chase them down in Syria as well.

You mentioned the Syrian government -- well, yes, they did say they will potentially welcome U.S. involvement potentially, but set enough rules, frankly, to make any on contract, any genuine cooperation impossible. Washington doesn't want to get in bed, so to speak, or become the air force of the Assad regime. They're behind tens of thousands of civilian deaths in the past three years.

Remember that weapons attack, too? Well, of course, that means ISIS will further radicalize more of those moderate opposition in the Syrian rebel ranks, turning toward extremists to try to win the war. It's a phenomenally messy conflict. And drones may be the most distance Washington wants to keep from it -- Christine.

ROMANS: Nick, a really messy conflict, because the United States does not want to embolden Bashar al Assad. I mean, it's very, very clear that the position of the U.S. government is they want him out. But by attacking ISIS, would you strengthen the modern opponents to Assad?

WALSH: Well, those moderate opponents have unfortunately been so fractured, so scattered for years now, the sudden idea of overnight arming them, equipping them is a tough challenge certainly and many say they have had their chance. They have shown they are unable to get along on the same page.

They had a very difficult fight against ISIS. ISIS is more disciplined, better equipped. The regime also equipped by Russia and Iran, better able to hold their lines. And many say, with the ISIS advance against those moderate held areas actually, we are facing an existential crisis for the moderate Syrian rebels, they maybe on the back permanently, Christine.

ROMANS: All right. Nick Paton Walsh, live for us this morning in London -- thanks, Nick.

BERMAN: He does a great job of laying out the stark reality and bleak choices that exists for the U.S. in some cases.

ROMANS: Really bleak, and so many conflicting alliances. You can see how ISIS has grown up and been able to really take advantage of this chasm and taken advantage of it well.

BERMAN: And as we said, in Syria, crossing the border into Iraq where a car bomb in Baghdad exploding during the morning rush hour, killing ten people, injuring dozens of others. No claim of responsibility so far. It follows a series of weekend bombing that killed at least 20 in Kirkuk. The fight against ISIS, it does continue in Iraq. The United Nations

accuses ISIS of crimes against humanity including the massacre of hundreds of Shia prisoners in Mosul.

CNN's Jomana Karadsheh live in Baghdad where sectarian violence is on the rise, something that plagued the country well over a decade now.

Jomana, what's the latest?

JOMANA KARADSHEH, CNN CORRESPONDENT: Well, John, as you mentioned, this morning, according to police, the car bomb detonating in a predominantly Shia area in eastern Baghdad, as you said, killing 10 people, wounding 34 others. This comes a day after we saw multiple bombings targeting Shiite areas here in Baghdad and also in the holy Shia city of Karbala in the south of Iraq.

In Baghdad, one of those attacks on Monday was a suicide bomber that struck a Shia mosque. Also in eastern Baghdad, in a predominantly Shia area, that attacked was later on claimed by ISIS, saying that it was retaliation, revenge for the brutal attack that we saw on Friday. As you recall, the attack was carried out by suspected Shia militia men who stormed a Sunni mosque north in eastern Baghdad, killing at least 70 worshippers.

Now, when that attack happened, there's a lot of concern seeing an attack, a counter attack, that cycle of retaliation and revenge that could reignite the country's sectarian civil war, a lot of fear about that. Those kind of divisions, those kinds of tensions really exploited by ISIS.

As we have seen, they take advantage of the Sunni grievances and the sectarian division to really solidify their presence in this country, especially in Sunni areas. And over the past few months, I have spoken to officials who have been concerned about this violence. The kind of violence we have not seen here since what is called the dark days of the Iraqi sectarian war between 2006-2007.

Just last year, the numbers really spiked. We are seeing it continue into 2014. Numbers we have not seen since 2008 when the violence levels dropped. These officials, Western officials have been concerned that the country is one major attack away from that all-out civil sectarian war.

BERMAN: The sectarian strike undermining the political stability that is so badly needed to fight ISIS in that country. Jomana Karadsheh in Baghdad, thanks so much.

ROMANS: The family of freed American journalist, Peter Theo Curtis is now waiting a reunion they once fear would never happen. Curtis was really Sunday after being held by Islamic militants for nearly two years. His mother tells ABC after learning that her son was alive and free, she reached out to the mother of slain American journalist, James Foley.

(BEGIN VIDEO CLIP) NANCY CURTIS, MOTHER OF FREED AMERICAN HOSTAGE: The first thing I did before I told my daughter was I sat down and sent an e-mail to Diane Foley. We have been through so much together. I didn't want her to hear it from the media first.

UNIDENTIFIED FEMALE: Do you know what you will say to him?

CURTIS: I give him a big hug and I'll probably cry. And he'll probably cry.

(END VIDEO CLIP)

ROMANS: A mother's relief on her face.

Nancy Curtis says the family incredibly relieved that Theo is healthy and safe and finally headed home after his ordeal.

BERMAN: Thirty-six minutes after the hour.

New revelations from whistleblower Edward Snowden about the agency's secret database. According to new documents, the NSA built up a Google-like database that allowed nearly two dozen government agencies to search through 850 billion records, including calls, e-mails and Internet chats. The program called I-Reach has data on the private communications of foreigners and also millions of Americans.

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

A stock market rally that just won't quit. The S&P 500 topped 2,000 for the first time ever yesterday. It did not hold above there. It did not finish.

BERMAN: Uh-oh.

ROMANS: Berman was very (INAUDIBLE), did it close above 2,000? Did it close above 2,000? No, but it was a record. It's the S&P 500s 29th record close this year.

BERMAN: Those heady moments.

ROMANS: Heady moments I will say.

It's been quite a run for investors, even with some bumps in the past few months, the S&P 500 is up 8 percent this year. That is a nice little return half way through the year. Since the March 2009 low, it's up 200 percent. That means if you invested a grand, it's worth three grand now.

I'm not suggesting you time the market. All I'm saying is if you've been dollar cost averaging, wow, you've had a real nice run.

BERMAN: You're just throwing out the terms here. I love it.

ROMANS: I love dollar cost averaging. Right now, U.S. stock futures barely moving. European stocks are

mixed this morning. Asian stocks ending their day lower. So, that's a read of things at the moment.

BERMAN: Right. She knows business and dollar cost averaging. I know TV shows. Some of the biggest stars on television were on hand for the primetime Emmy awards. A good night for "Breaking Bad." The show a final send off taking home top honors for outstanding drama series. The star Bryan Cranston had one of the most memorable moments. Check this out.

ROMANS: Why did he kiss her? I don't understand.

BERMAN: Well, you know, they had starred together. He made a guest appearance on "Seinfeld" years and years ago. Obviously, they had unfinished business to take care of here for 11 seconds. Someone timed it, it was 11 seconds. Jimmy Fallon, by the way, is splitting them up.

Other big winners included "Modern Family", a fifth win for "Modern Family". Jim parsons took home his fourth gold statue for outstanding actor in a comedy. And Juliana Marguiles won the outstanding actress for her role in "The Good Wife."

Some pretty high moments but also some poignant as well. It was an emotional Billy Crystal paying tribute to his late friend, Robin Williams.

(BEGIN VIDEO CLIP)

BILLY CRYSTAL, ACTOR: It's very hard to talk about him in the past because he was so present in all of our lives. For almost 40 years, he was the brightest star in the comedy galaxy. Robin Williams, what a concept.

(END VIDEO CLIP)

BERMAN: You could see he's still processing it himself. Billy Crystal, obviously, great friends with Robin Williams. They did "Comic Relief" together all those years.

ROMANS: All right. Thirty minutes past the hour.

Possible new evidence released in the deadly police shooting of Michael Brown, as the community gives its final good-bye to the teenager. That's next.

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ROMANS: There's breaking news overnight, a potential new clue in the Michael Brown shooting. An audio recording capturing the moment Michael Brown was shot by police. This was apparently recorded by a Ferguson resident during a video chat with a friend.

We want you to listen to the audio, and then hear from the attorney of the man who captured the shots. Listen. (BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: You are pretty.

(GUNFIRE)

UNIDENTIFIED MALE: You are so fine, just going over some of your videos.

(GUNFIRE)

(END AUDIO CLIP)

(BEGIN VIDEO CLIP)

LOPA BLUMENTHAL, ATTORNEY: He was in the apartment. He was talking to a friend on a video chat. He heard loud noises.

And at the moment, at the time, he didn't even realize the import of what he was hearing until afterwards. And it just happened to have captured 12 seconds of what transpired outside of his building.

(END VIDEO CLIP)

ROMANS: The FBI now investigating, Lopa Blumenthal. That woman said they've interviewed her client about the audio recording. It comes on the same day Michael Brown was laid to rest. Thousands were in attendance.

And Brown family's request for peace seems to have taken hold in Ferguson.

CNN's Nick Valencia has more.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN CORRESPONDENT: It has been another day of peace and quiet here in the streets of Ferguson in the overnight hours. We really saw a dwindling of the police force as well as the demonstrators that were showing their solidarity for Mike Brown. It seems as though people on the streets of Ferguson have really heeded the message of their elders, as well as the message of Mike Brown, Sr., who on Sunday, at a peace fest, urged and encouraged people in Ferguson, to keep the peace, to be respectful on the day his son was laid to rest.

Here in Ferguson, in the early morning hours, that's exactly what we see. This is the lot, the approved assembly area for Ferguson demonstrators, if you look around here, it's largely empty. There is a small contingent of folks still here who spent the night here overnight. About a dozen people tell me they will continue their demonstrations, even when the cameras leave.

There also still is a large contingent of support for Officer Darren Wilson, just not here in Ferguson. More so in St. Louis, about 30 minutes away from here. We know that his supporters have raised $400,000 for his defense. That money also is going toward his livelihood.

Darren Wilson supporters say that he's been given an unfair chance in the media, mischaracterized. They fear he will, one, never be able to be a police officer and, two, never be able to live in St. Louis again.

Here behind me, it's been clear to me and told to me directly that this group is for Mike Brown. And while it may be peaceful right now in these hours, they say that the demonstrations will continue again today, even if the cameras aren't here to catch it. They want the story out there. They want to focus on Mike Brown, as well as the youth here who they say suffer at the hands of the police.

In Ferguson, Missouri, Nick Valencia, CNN.

(END VIDEOTAPE)

BERMAN: Our thanks to Nick for that report.

Initial damage assessment from the California earthquake shows the total loss could reach $1 billion. Property damage alone is likely hundreds of millions of dollars, but the economic losses for the region expected to be much, much higher. It really hit the wine country. The damage, though, still could have been much worse had most of the 2013 vintages were not already shipped off.

Forty-six minutes after the hour.

A new hope for peace in war-torn Gaza. Could Israel and Hamas be ready to return to return to cease-fire talks? We are live with the very latest, right after the break.

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BERMAN: Israeli airstrikes keep coming in Gaza. The latest Palestinian officials say killed two and wounded 20 in a blast that nearly leveled one of Gaza's tallest buildings. In the meantime, a chance to revive peace talks, they may be gaining some traction.

Israel's prime minister is considering a month-long cease-fire with Hamas.

CNN's Ben Wedeman has the latest on that live in Jerusalem.

Good morning, Ben.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, good morning, John.

What we are seeing now in Gaza seems to be an Israeli policy of shock and awe overnight. They took down two apartment buildings, one of them 15 floors, another somewhat smaller. But it seems to be part of this new policy that went into effect at the end of last week, where rather than what we saw, the beginning of this war, they would shot missiles into individual apartments or offices. Now, they are taking entire buildings down. It seems to be their

attempt to really up the pressure on Hamas to come to some sort of an agreement to end this fighting. Now, in one instance, there was a building at about 11:00 last night, local time, that received three so-called "knocks" on the roof, warning shots, telling people to leave.

They left the building at midnight. It was hit in two airstrikes when people went back to see if there was anybody in the building. Emergency staff arriving. Another airstrike occurred in which 20 people were injured. So, this seems to be their new tactic in Gaza.

Now, regarding efforts on the diplomatic line, we did hear from the Israeli prime minister, Benjamin Netanyahu, that he's considering a one-month cease-fire. Now, there is mounting pressure on both sides to bring an end to the fighting. The Israeli academic year, school year, is about to end.

And this is the 50th day of this war. And many people on both sides, in Gaza and Israel, feel enough is enough. It's time to stop.

BERMAN: All right. Ben Wedeman in Jerusalem for us this morning -- thanks so much, Ben.

ROMANS: All right. Two Arab countries, Egypt and the United Arab Emirates, secretly launching airstrikes against Islamic targets inside Libya. U.S. officials say they have attacked twice in this past week, hitting militia positions in Tripoli, including a weapons depot. A second wave targeted rocket launchers and military vehicles. The U.S. says it two allies launched the strikes without informing the Obama administration beforehand.

BERMAN: It's a remarkable occurrence when you see these Arab nations doing this without U.S. approval, or condolence or knowledge in this case. It's really interesting to see.

Fifty-three minutes after the hour.

The Ebola epidemic in West Africa taking a toll on health workers. More than 120 died, according to the World Health Organization with 120 fighting the disease. One of them, a British nurse remains, in a London hospital. (INAUDILE) was flown back home after contracting Ebola while working in Sierra Leone. His condition is said to be stable.

Making matters worse, the shroud of secrecy surrounding patients who have contracted Ebola is leaving millions vulnerable. Many patients refuse to name people they have come in contact with. Preliminary data shows that 40 percent to 60 percent of people who have contact with Ebola patients may be unknown.

ROMANS: And this is why public health officials around the world are so terrified about the spread of the disease. In part because, you know, the infrastructure in these countries and the mistrust of the doctors who are coming in are so profound.

All right. Fifty-four minutes past the hour.

Is Burger King getting an assist from Warren Buffett in a tax inversion deal to give up U.S. citizenship? Well, this is starting to get interesting.

An EARLY START on your money is next.

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ROMANS: All right. Fifty-eight minutes past the hour. Time for an EARLY START on your money.

There's no stopping the stock market rally. The S&P 500 topped 2,000 for the first time yesterday. Now, it didn't finish above 2,000, John Berman, but it still managed the 29th record high close this year.

Right now, U.S. stock futures up a little bit. That means if it will hold, that would be another record day. European stocks mixed right now.

OK. Warren Buffett investing in Burger King's plan to give up its U.S. citizenship. Burger King is in talks to merge with Canadian chain Tim Horton's. It would lower its tax bill. It's a controversial strategy called inversion. "The Wall Street Journal" reporting Buffett's Berkshire Hathaway will provide about 25 percent of the deal's financing. That would put Buffett in the middle of a heated debate about U.S. corporate taxes. Lawmakers in the White House called inversions unpatriotic.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: It certainly isn't fair to the millions of middle class families in this country that don't have that option.

(END VIDEO CLIP)

ROMANS: The White House and others encouraging Congress to close that loophole.

Grand new study out this morning, Generation X causing gridlock in the market. Almost half of Gen X homeowners are under water. That means they can't sell their homes for what they owe on their mortgages. And that prevents them from selling, presents millennials from being able to purchase them. It also means baby boomers can't sell their larger homes to Gen Xers.

The good news, the percentage of homeowners under water fell to 17 percent last quarter, compared to 24 percent a year ago. So, that's good. The trend is improving, but Gen Xers right there in the center, causing gridlock between millennials who can't buy in and boomers who can't trade down.

BERMAN: We are Gen X, right?

ROMANS: Yes. BERMAN: So, I think we're taking the blame from everyone else.

ROMANS: No, everyone talks about millennials and bombers. No one cares about Gen X.

BERMAN: No one cares about us.

ROMANS: No one cares about Gen X.

BERMAN: All right. EARLY START continues right now.