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Early Start with John Berman and Zoraida Sambolin

American Killed Fighting for ISIS; Freed American Hostage Back in the U.S.; Ebola Has Upper Hand; Ceasefire in Gaza

Aired August 27, 2014 - 04:30   ET

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

(COMMERCIAL BREAK)

JOHN BERMAN, CNN ANCHOR: An American jihadist killed fighting for ISIS in Syria. What Douglas McCain's family is now saying about him? This as President Obama considers new military strikes to help take down that terror organization. We're live with the very latest.

CHRISTINE ROMANS, CNN ANCHOR: Breaking overnight: a freed American hostage back in the U.S. Peter Theo Curtis reunited with his family after being held hostage for nearly two years by terrorists. What he's saying this morning, ahead.

BERMAN: That's some picture.

Meanwhile, a truce in Gaza. A new cease-fire reached between Israel and Hamas after months of fighting. Which side got the better deal? We're live in Gaza with the latest this morning.

ROMANS: And there's expiration on that cease-fire. That's what's so incredibly important.

BERMAN: This one does seem different.

All right. Welcome back to EARLY START, everyone. I'm John Berman.

ROMANS: I'm Christine Romans. Thirty-one minutes past the hour this Wednesday morning.

The U.S. confirms an American citizen died while fighting with ISIS terrorists in Syria. Thirty-three-year-old Douglas McArthur McCain was killed during a battle between rival groups near the city of Aleppo. McCain was on the U.S. terror watch list. He converted to Islam 10 years ago and over time became more radicalized. He's not the first American to join militants in Syria. U.S. officials estimate there are dozens, perhaps as many as 100 Americans who tried to join various militant groups there.

We get more this morning from CNN's Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: John and Christine, the American Douglas McArthur McCain killed in Syria, said to be fighting alongside ISIS. His family notified by the U.S. government, telling our Jim Sciutto they had not known that he was in Syria fighting as part of the war going on there.

U.S. counterterrorism officials say he was one of the Americans that they were keeping an eye on, that they were investigating for possibly joining militant groups. And if he had attempted to travel at any point and perhaps come back to the United States, he would have been subject to additional scrutiny.

So, what about U.S. airstrikes in Syria? What about the next step there? Well, by all accounts, U.S. reconnaissance flights are flying along the border, staying for now on this side of the Iraqi side of the border, but having to look into Syria, trying to determine any location of potential ISIS targets that they can.

The real question, of course, is whether President Obama will take the next step and order airstrikes in Syria. But there is some concern at the Pentagon about the law of unintended consequences. U.S. airstrikes in Syria could actually benefit Syrian President Bashar al Assad whose forces are also battling ISIS -- John, Christine.

(END VIDEOTAPE)

BERMAN: Thanks to Barbara Starr for that report.

Douglas McCain's family in Minnesota is reacting to this news with disbelief. They say they did not know he was in Syria fighting with ISIS until the State Department told them that he was dead.

McCain's cousin can't believe that he is gone or what is now being said about him.

(BEGIN VIDEO CLIP)

KENYATA MCCAIN, DOUGLAS MCCAIN'S COUSIN: This has been my whole attitude, like he's not dead. My second thinking was, you know, why was he in Syria? I feel like maybe it was people he was hanging out with, because that's not who he is.

He's not ISIS. He's not a terrorist. He's a happy person. He's close with family. You know, very close to his mom and to his child, like, I don't believe it.

(END VIDEO CLIP)

BERMAN: Despite the evidence, McCain's cousin says the idea that he is a jihadist is, quote, "ludicrous."

President Obama now considering his options for striking ISIS after he approves surveillance flights to gather intelligence on extremist targets inside Syria. U.S. officials do admit it will take more than just airstrikes, though, to defeat ISIS.

(BEGIN VIDEO CLIP)

MARIE HARF, DEPUTY STATE DEPARTMENT SPOKESPERSON: There's not a military solution entirely to the ISIS problem. Obviously, we have to take the fight to them. We're doing that in Iraq. But we need to cut off their funding. We need to cut off the flow of foreign fighters.

We need an inclusive government in Iraq to come together and really push them out of Iraq. All of these pieces need to be a part of the strategy in the long term.

(END VIDEO CLIP)

BERMAN: As you heard right there, U.S. airstrikes have hit ISIS in Iraq, slowing the advance in the northern part of that country.

CNN's Anna Coren is live in Irbil, in the Kurdish region.

You know, Anna, as you are heard right there, the United States is taking the fight to ISIS in Iraq and by some reports this morning, including "The New York Times", could actually expand that battle soon.

ANNA COREN, CNN CORRESPONDENT: Yes, certainly. Those U.S. airstrikes placing enormous pressure on ISIS militants, and we're seeing that first hand, certainly, around the surrounding areas of Irbil and also at Mosul dam, that critical piece of infrastructure that the Kurdish forces managed to claim back from ISIS' control.

Ninety-eight U.S. airstrikes today, obviously, targeting artillery, those convoys, those enemy positions, slowing down the militants.

And not only is it affecting morale, that's what we're hearing from Kurdish forces who captured some militants and then interrogated them, but it's also forcing them to change their tactics, their methods on the battlefield. They are now trying to infiltrate cities that they see as fertile ground -- one of them being Kirkuk which is about 100 kilometers from where we are in Irbil. We went there yesterday, spoke to officials who said they have arrested dozen of ISIS members. They do believe that there are sleeper cells there.

And obviously once they ingratiate themselves within these communities, it's very hard to identify, and that is the concern.

The suicide bombings, the horrific suicide bombings, which I believe we have pictures of, many of them injured from the hospital that we visited yesterday, that is now going to be ISIS' tactic moving forward. It certainly instills fear and panic within the community. People no longer feel safe.

But certainly, ISIS is slowing down on the wide expansive battlefield that is Iraq. They do control a third of the territory here. But, obviously, those strikes are slowing them down, containing them, but not defeating them, John.

BERMAN: We just saw those pictures from the hospital you visited, Anna. You can see the physical impact that ISIS is having in Iraq. Obviously, it must be a tremendous psychological impact as well.

Our Anna Coren in Irbil, thanks so much.

All right. Breaking overnight, a homecoming for freed American hostage Peter Theo Curtis. He was reunited with his family just days after being released in Syria, where he had been held for nearly two years by Islamic militants.

Curtis released a statement saying, "I've been so touched and moved beyond all words by the people who have come up to me today, strangers on the airplane, the flight attendants, and most of all, my family to say welcome home. I am also deeply indebted to the U.S. officials who have worked on my case. I especially want to thank the government of Qatar for intervening on my behalf."

His mother says her joy is tempered by the fact that so many others are still captive.

(BEGIN VIDEO CLIP)

NANCY CURTIS, MOTHER OF PETER THEO CURTIS: I don't think anybody is in the mood for celebration. You know, we're relieved. But after the events of the past week and knowing that those other children of my friends are in danger -- you know, I do have very conflicting emotions.

(END VIDEO CLIP)

ROMANS: Nancy Curtis appealed for privacy while Theo adjusts to being home. That picture of them together really says it all, doesn't it.

BERMAN: Such joy and relief.

President Obama promising significant improvements in the V.A. health care system, telling veterans in a speech to the American Legion Convention that reforms are under way and there will be consequences for past abuses.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The misconduct we've seen at too many facilities, with long wait times and veterans denied care, folks cooking the books, is outrageous and inexcusable.

(END VIDEO CLIP)

BERMAN: The president pledging a new culture of accountability at the V.A.

ROMANS: The Ebola virus now has the upper hand in West Africa. That warning from the head of the Centers for Disease Control, Dr. Thomas Frieden, who is visiting three of the countries hardest hit by this virus.

(BEGIN VIDEO CLIP)

DR. THOMAS FRIEDEN, CDC DIRECTOR (via telephone): This is an absolute emergency. We have never seen anything on this scale with Ebola before. And, unfortunately, it's going to get worse before it gets better. We've not yet turned the tide. The outbreak is ahead of our response. And the critical block now is getting treatment centers up around the country as rapidly as possible but ensuring safety at all steps.

(END VIDEO CLIP)

ROMANS: Public health officials can be quite measured in their statements about risks. That was not measured. That was a warning.

The numbers, of course, frightening, according to the World Health Organization, 1,427 people have died from Ebola, 2,216 have been affected just since March. The WHO has now removed its Ebola response team from the region of Sierra Leone after a medical worker contracted Ebola. And a British nurse exposed to that virus while working with patients in West Africa is being treated with the experimental drug ZMapp.

BERMAN: A program to compensate victims of crashes linked to a faulty ignition switch in GM vehicles has received 300 claims so far, including 107 related to fatal accidents. Officials overseeing the program say payments to victims and their families will be finalized by the end of September. It's expected to cost GM hundreds of millions of dollars. The faulty switches have been liked to at least 13 deaths.

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

The stock market keeps climbing. Futures pointing slightly higher right now. It could mean a third record day in a row for stocks. The S&P 500 closing above 2,000 for the first time ever yesterday.

BERMAN: Ever.

ROMANS: Thirtieth record-high close this year. This month has been the best August for stocks since the year 2000.

But not all stocks are at record. Smith & Wesson shares down 11 percent this morning in pre-market trading. The gun maker said sales were down, shrinking demand for rifles. Gun sales had spiked fueled by concerns of more regulation.

They had really accelerated after Newtown, the Newtown massacre. A lot of people thought there would be a run on guns by the government which doesn't turn out to be true and you have all of these sales of rifles. A now, that buying frenzy seems to be over.

BERMAN: Interesting. So, it reflects a sense out there that there will be no new gun laws.

ROMANS: Perhaps, yes.

BERMAN: All right. Forty-one minutes after the hour.

Happening now: an open-end cease-fire in Gaza. Hamas and Israel agreeing to stop the violence after seven weeks of fighting. Do the people in Gaza feel as if the deal was worth it?

We're live there, when we come back. (COMMERCIAL BREAK)

ROMANS: The sound of silence in Gaza, music to the ears of civilians who have had to endure seven weeks now of war. Israel and Hamas agreeing to a cease-fire -- a cease-fire without no expiration date.

The announcement triggered celebrations in Gaza that included gunfire. Hamas declaring victory while Israeli officials are expressing concern this truce like the others may not stick.

CNN's Ian Lee live in Gaza.

Ian, the most important fact here, is this a cease-fire with no expiration date. Can it hold? That's the question that remains to be seen.

IAN LEE, CNN CORRESPONDENT: Well, you're right. And we are watching that very carefully, past cease-fires there have been some violations. So that will be the true test of the cease-fire.

Although from the feel of it, it does seem like all the sides, all the Palestinian sides, who were fighting it, firing the missiles into Israel seem to have agreed to this. So, as of now, it seems like the guns have gone silent -- at least permanently for the short time.

But one of the conditions of this was easing of the blockade in Gaza, and I'm here at the Rafah terminal with Egypt. And we're seeing -- we have these trucks behind bringing goods into Gaza.

Now, these trucks are what we're told are here on a normal basis. And we don't know, and the implementation of the cease-fire, those fine points that went along with it, haven't been implemented yet. But when they are, we're expecting more trucks like this coming through the terminal, bringing desperately needed humanitarian aid to the Gaza Strip.

ROMANS: Ian Lee for us this morning in Gaza -- thank you for that, Ian.

BERMAN: Forty-six minutes after the hour right now.

Tragedy at the shooting range. An instructor killed by a 9-year-old girl with an Uzi. How this happened, after the break.

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ROMANS: Protests over the shooting of Michael Brown resumes Tuesday. More than 100 demonstrators marched to the federal courthouse in St. Louis. A smaller group of peaceful protesters marched in Ferguson. Organizers said Tuesday's march was to promote healing for the community.

The latest protests come as the FBI is evaluating a possible audio recording of the shooting. CNN cannot independently confirm if the shots heard on this recording were from the confrontation between Brown and Officer Darren Wilson. Forensic audio expert Paul Ginsberg explains to CNN how experts can determine if the recording is gunfire.

(BEGIN VIDEO CLIP)

PETER GINSBERG, AUDIO EXPERT: I would like to do an acoustic test that is, go to the person's residence where this was recorded. Ask him whether the window was open or shut, in which direction he was facing, how did he have the iPad or the iPhone situated? And then at the shooting location have people test fire, in the same direction with the same type of weapon so as to see what we hear, and at what level. That would give us an idea of whether it's authentic.

(END VIDEO CLIP)

ROMANS: Prosecutors say it may take until October to present the evidence in this case to the grand jury.

BERMAN: A real tragedy in an Arizona shooting range. An instructor accidentally shot and killed by a 9-year-old girl who was learning how to shoot an Uzi. This video showing the instructor Charles Vaka (ph) with the girl just before she pulled back the trigger and the automatic weapon kicked back, firing a bullet into Vaka.

This accident obviously raises questions.

(BEGIN VIDEO CLIP)

REPORTER: How does a 9-year-old get an Uzi in her hands?

SAM SCARMARDO, SHOOTING RANGE MANAGER: Well, a 9-year-old gets an Uzi within her hands -- within the criteria as 8 years old to shoot firearms. We instruct kids as young as 5 and 22 rifles, and they don't get to handle the firearms but they're under the supervision of their parents and of our professional range masters.

(END VIDEO CLIP)

BERMAN: Authorities say the 9-year-old is from New York. She was there on vacation with her family.

ROMANS: There are no words for that story.

Several aftershocks have rocked parts of northern California, following Sunday's 6.0 earthquake. At least 65 aftershocks have rattled Napa County and surrounding areas. Sunday's quake injured more than 100 people.

One teen survivor nearly crushed after bricks from a fireplace collapsed on him and fractured his pelvis. This young man speaking out about the ordeal.

(BEGIN VIDEO CLIP)

NICHOLAS DILLON, EARTHQUAKE VICTIM: I did have moments where I start screaming because it felt like it was forever just laying on the floor. I didn't -- I didn't think the paramedics were going to come out. So, my grandfather just wanted to pick me up and take me to the hospital. But they told me, no, no, leave him. I had all of them rushing in with lights and looking at me and screaming.

(END VIDEO CLIP)

ROMANS: Experts say small quakes could continue for several more days.

BERMAN: Forecasters keeping a close watch on hurricanes on both coasts. Out west, it is hurricane Marie with 100-mile-per-hour sustained winds. It is not expected to be a threat to land but the surf is definitely up with huge waves in the Pacific.

Now, in the Atlantic, hurricane Cristobal, the third of the season is creating some dangerous rip currents. Be careful if you're going to the beach. It's really on either coast right now.

ROMANS: All right. Coming up, a computer recall you need to know about. The cord that you could have right now that you need to stop using. We're going to get an EARLY START on your money, next.

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ROMANS: All right. Let's get an early start on your money.

This month has been the best August for stocks since 2000. The S&P 500 closing above 2000 for the first time yesterday. It first hit 1,000 back in 1998. These are the stocks that have led this rally, these last 1,000 points of the S&P 500. Look at this, Apple 17,000 percent since February 1998. Allergen, that's the Botox maker, that's second, up almost 2,000 percent.

BERMAN: Oh, yes.

ROMANS: Autozone, Ball Corp., also major drivers. Those are huge gains from 2000. Stocks climbing a lot of people have been asking, hey, are my investments in order? Do I have the right mix for stocks and bonds?

Here's new guide answer from CNN money about that risk tolerance, mass allocation. First, consider your time line, the younger you are, the more stocks you should have in your portfolio, subtract your age from 120. It means if you're 40 years old, your 401(k) should be roughly abou5 80 percent stocks.

Next, diversify your investments. For stocks, that means investing in the U.S. and internationally, in large and small companies.

And, finally, figure out your risk. Visit CNNmoney.com and take a brand-new quiz there about your risks are in the stock market. Really important to that, especially after you see such a big run.

All right. If you have an HP laptop, you need to check your charging cord immediately. HP is recalling 6 million power cords. The issue, they can overheat and catch fire. The recalls affects chargers sold between September 2010 and 2012 for HP and Compaq notebooks and some docking stations. There have been two claims of minor burns and 13 claims of property damage of these overheating cords. The company says take a look to see if you have them.

BERMAN: All right. For our viewers around the world, "CNN NEWSROOM" is next.

For those of you here in the U.S., EARLY START continues right now.

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