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Early Start with John Berman and Zoraida Sambolin

"Please Release My Child"; U.S. Weighs Airstrikes Against ISIS; Freed American: Safe at Home; Did Russia Attack Wall Street?; New Russian Offensive in Ukraine

Aired August 28, 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. President Obama weighing how to take down the terror group as it barrels through Syria and Iraq, as the mother of an American journalist kidnapped by ISIS begs for his release. Live team coverage ahead.

JOHN BERMAN, CNN ANCHOR: Safe at home. A freed American journalist held for two years by terrorists sharing now what he is most grateful for this morning.

ROMANS: Did Russian hackers attack Wall Street? The FBI investigating a cyber attack they say may have been revenge.

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

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

BERMAN: All right. This morning, hostage negotiators, intelligence experts analyzing a mother's desperate plea for mercy. The mother of Steven Sotloff appealed directly to the leader of ISIS in a video message to spare her son's life and release him.

(BEGIN VIDEO CLIP)

SHIRLEY SOTLOFF, MOTHER OF KIDNAPPED JOURNALIST: Steven has no control of the actions of the U.S. government. He's an innocent journalist. I have always learned that you, the caliph, can grant amnesty. I ask you to please release my child.

(END VIDEO CLIP)

BERMAN: Steven Sotloff was taken captive by terrorists a year ago, while he was covering the civil war in Syria.

CNN's Karl Penhaul is following the latest. He is live in London.

And, Karl, I know you have been talking to experts. We have, too. It's fascinating, going line by line from that statement as this mother pleads for mercy. She knew what she was doing here. KARL PENHAUL, CNN CORRESPONDENT: Yes, absolutely. I have been

talking to a kidnapping and ransom adviser who's got broad experience in Latin America, Africa, and the Middle East. And he says what Sotloff's mom here is doing is an excellent strategy. He says that the statement really, what it's trying to do is refocus, refocus the dialogue, focusing on Steven Sotloff as a human, not as a political pawn, or a piece of chattel and some kind of game, talking about him as an individual and, obviously, trying to distance himself from the actions of the U.S. government.

What the statement also does, according to the expert is that it's trying to reestablish a line of communication directly with ISIS, a line of communication that could ultimately lead to some kind of negotiation. Now, what the kidnapping ransom expert I talked to said was that the worst case scenario in any kidnap situation would be that the victim is being held by a bunch of crazy hot head who really don't have any experience. Ironically, the more experienced your kidnapper, the better, because they've got a clearer idea of what they can demand and also realistically what they can get out of any negotiation.

Now, of course, there's no suggestion right now that Sotloff is being held in exchange for any financial ransom. The demands are much more in political nature. And, in fact, the industrialized G-8 nations have come out and roundly condemned the payments of ransom because that funds extremist groups.

But it also, as you know, being widely reported that certain European countries who have citizens are being held in Syria have paid ransoms. And that kind of opens the idea that there may be, by some countries, ransom payments under the table, John.

BERMAN: It was interesting to hear, Karl. She was pleading, I think really appealing to the ego of the leader of ISIS, al Baghdadi, and also to his religious beliefs at the same time.

PENHAUL: Yes, absolutely. Certainly trying to show a knowledge, a certain sympathy, if you like, for Islam and for Muslim beliefs, trying to be culturally very sensitive and also trying to show her son, Steven, had been doing the same, showing the suffering of the Muslim people -- all very much saying, hey, you know, my son is a human being, I can show you some respect as a human being. Now, let's talk as two individuals rather than a military insurgent group and me, as a mother. I'm no representative of the U.S. government. Let's just talk as people -- John.

BERMAN: Of course, one analyst wrote this morning, you know, they are trying to tug at the heart strings of an organization that might have no heart.

Karl Penhaul in London for us, thanks so much.

ROMANS: Thirty-three minutes past the hour.

In Iraq, a new round of airstrikes reported on ISIS positions near Irbil, while the U.S. considers a humanitarian relief operation in northern Iraq where people have been under siege now for weeks from ISIS.

Anna Coren has the latest. She's live in Irbil, Iraq.

And we should say, these airstrikes by the U.S. have certainly stopped ISIS in its tracks. But to say they're in retreat would be a real stretch of the imagination. In fact, you have civilians in Iraq who are still surrounded by this terror group.

ANNA COREN, CNN CORRESPONDENT: That's right. You specifically talking about that township of Amerli, made up of Turkmen Shia. It's been 100 miles north of Baghdad. And they have been surrounded by ISIS militants for the past two months. It's the local police and volunteers within that township who are taking up arms being dropped by Iraqi helicopters over the last several weeks.

They are not making many drops, but we do understand they are getting in occasionally, dropping off weapons and aid. But according to the Turkmen Foundation, links to family and friends trapped in Amerli, they say the situation is dire. They are getting reports that dozens of children are dying from starvation as well as dehydration. ISIS has managed to cut off the water and power supplies. Medical supplies are extremely low. There is no hospital in the township of Amerli, only one medical center.

So, according to these activists, they say that these people need to be evacuated. They need to be evacuated now. But you are talking 12,000 people. This is the problem for the Iraqi military to get out there, secure the area when there are so many ISIS militants surrounding the village.

But, certainly, Christine, there is a call now to the Obama administration to expand its U.S. airstrikes. They have been focused on the north of the country here in Irbil and the Mosul dam, which was an important piece of infrastructure that was seized last week by Kurdish forces. ISIS militants took it earlier in the month. But, obviously, with the situation unfolding in the township of Amerli, there's now that call for President Obama to expand his operation across other parts of the country, Christine.

ROMANS: Ana, the motive for ISIS to surround these 12,000 people, is it because this is a strategic down or is this ISIS ethnic cleansing?

COREN: This is ISIS ethnic cleansing. There's no doubt about it. The Turkmen Shia, I conceded to be heretics, that they don't, obviously, adhere to the beliefs of ISIS. This is what we saw at Sinjar with the potential genocide of the Yazidi population.

The U.N. special representative, Christine, for Iraq appealed to the international community just days ago that there could be a potential massacre unfolding in Amerli. So, the call is going out. They need more Iraqi troops on the ground. They certainly need the U.S. airstrikes to be extended as well to that part of the country, Christine.

ROMANS: All right. Anna Coren for us with a disturbing we report from Irbil -- thank you, Anna. BERMAN: We're learning from another American killed in Syria, in

addition to Douglas McCain, who was fighting for ISIS. This is coming from a Syrian opposition group who did not identify the second American. This is coming as the FBI investigates Douglas McCain's terrorist origins. He is from Minneapolis area, which the Fed say has become fertile recruiting ground for Islamic terrorists.

(BEGIN VIDEO CLIP)

KYLE LOVEN, FBI SPOKESMAN: Unfortunately, the recruiters and those who lure youth overseas are very aware that they have a pool of potential travelers here in Minneapolis.

(END VIDEO CLIP)

BERMAN: Douglas McCain attended the same high school as Troy Kastigar, who was killed fighting for the terror group al-Shabaab in Somalia.

ROMANS: We are hearing from American journalist Peter Theo Curtis for the first time since he was released after being held for nearly two years by terrorists in Syria, expressing his gratitude to those who worked so hard for his freedom and to the welcome he has received.

(BEGIN VIDEO CLIP)

PETER THEO CURTIS, AMERICAN JOURNALIST: I had no idea, when I was in prison, I had no idea that so much effort was being expended on my behalf. Now, having found out, I am just overwhelmed with emotion.

I'm also overwhelmed that one of the things, that is the total strangers have been coming up to me saying, hey, we are just glad you are home, welcome home, glad you're back, glad you're safe. Great to see you.

So, I suddenly remember how good the American people are and what kindness they have in their hearts. And to all those people, I say a huge thank you from my heart, from the bottom of my heart.

(END VIDEO CLIP)

ROMANS: Curtis telling fellow journalists, he plans to answer all their questions, but he needs to time to decompress and bond with his mom.

BERMAN: Bond with mom.

ROMANS: She spent two years to get him back.

BERMAN: He's a mensch.

ROMANS: He can spend time with mom. Wish him the best.

The FBI is investigating coordinated cyber attacks on JPMorgan Chase and other major banks, possibly stemming from Russia. Experts say this hack was sophisticated. Hackers were able to breakthrough bank security, steal account information. The U.S. official telling CNN the extent of the damage and where the hack came from still isn't clear.

The hackers from Russia are often top FBI suspects. The timing of this hack raising suspicions given U.S. sanctions against Russia. In response to the breach, JPMorgan said companies of its size experience cyber attacks every day and the bank has measures to protect itself.

A quick check of the markets right now, European shares moving lower, Asian shares ending the day down. The S&P 500, record high yesterday. That's right. But U.S. stock futures pointing a little bit lower right now.

BERMAN: Protesters demanding action in the wake of the Michael Brown shooting. They are taking their case to the White House. They are planning to deliver a petition with some 900,000 signatures urging what they call justice for Michael Brown. The petition calls on the Justice Department to investigate, prosecute and fire all police officers involved in the shooting of the unarmed teenager.

Police right now scaling back their presence following several nights of relative calm there. Highway Patrol Captain Ron Johnson says state and county police will now have a reduced role.

BERMAN: All right. Happening now, an American father's desperate search to find his son who disappeared in Israel. We are live with the latest, after the break.

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ROMANS: All right. Welcome back.

So far, so goods in the Middle East. The Gaza cease-fire is holding. Meantime, Israeli officials are investigating the disappearance of Aaron Sofer, a New Jersey religious student who went missing hiking near Jerusalem. His parents made this appeal on YouTube.

(BEGIN VIDEO CLIP)

CHULDA SOFER, MOTHER OF MISSING STUDENT: I beg of you, beg you, please, if anyone sees -- Aaron, please call the police immediately.

(END VIDEO CLIP)

ROMANS: The kidnapping and killing of three Israeli teenagers by Hamas was one of the triggers for seven weeks of Gaza fighting.

CNN's Ben Wedeman live for us in the Golan Heights.

And, Ben, you know, this missing student really, his family is so concerned. People have turned out to try to find him. What happened? Do we know if he was abducted, or we just don't know where he went?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we don't know if he was abducted. All the police can tell you is that he has been missing since Friday afternoon when he was hiking with a friend in the Jerusalem forest, west of that city.

Now, the police say they continue to search in that area with horse -- with policemen on horseback, on foot with sniffing dogs. But they have yet to come up with clues as to where he could have been.

Now, he was hiking with a companion. And what happened was they were going down a steep incline and they got separated. The companion got to the bottom of that incline, didn't find this 23-year-old New Jersey residents and reported it to police. Since then, they have been following up every possible lead, but they really haven't found anything.

The parents, in addition to the video appeal, have offered a 100,000 shekel reward, that's about $28,000, for anybody who might have information leading to the discovery of Aaron. But until now, the police and investigators say they just have nothing to go on -- Christine.

ROMANS: All right. What a mystery. Ben Wedeman -- thanks for that, Ben.

BERMAN: Forty-six minutes after the hour.

The sister of Boston marathon bombing suspect Dzhokhar Tsarnaev has been arrested for a bomb threat against a woman in New York City. Aliana Tsarnaev who lives in New Jersey is charged with aggravated harassment. Police say she phoned in a threat to the woman saying, quote, "Leave us alone, I know people who can put a bomb on you."

ROMANS: It's a tragic case of friendly fire. An Omaha police say a crew member of the TV show "Cops" was killed by an officers bullet, as they filmed a robbery at the fast food restaurant. Thirty-eight-year- old sound man Bryce Dion was hit by an errant bullet during a shootout with the robbery suspect. The police say the suspect who was also killed was armed with a pellet gun.

BERMAN: Powerful storms in the Atlantic and Pacific, staying away from land, but, look at that -- huge, huge waves and rip currents on both coasts, for surfers and a surfing legend, it's an opportunity.

(BEGIN VIDEO CLIP)

LAIRD HAMILTON, BIG WAVE SURFER: We live for this. This is like we wait our life for this stuff to happen. So, you know, we spend our whole life waiting for the storm of our lifetime.

(END VIDEO CLIP)

BERMAN: Christine Romans asked, were those deltoids?

ROMANS: His neck is so big.

BERMAN: Important news story about the weather here, and your reaction was, were those deltoids?

ROMANS: No, I mean, look, there are a lot of people, they had I think like 100 water rescues yesterday I think. So, a lot of people think they are Laird Hamilton and they're going out there to surf, but they are not Laird Hamilton.

Those are called deltoids, right?

BERMAN: Yes, they are called deltoids.

The surf did lead, I should say, to the death of one surfer.

ROMANS: There are a lot of water. And so, people need to be really careful out there.

BERMAN: Deltoids.

Forty-seven minutes after the hour.

Crisis in Ukraine. The country providing new evidence that Russia is sending in soldiers to fight with the separatists. Live in Moscow right after the break.

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ROMANS: A Ukrainian military commander calls it a full-scale invasion. Russian troops and separatists battling on several fronts now. Ukraine's prime minister calling for an immediate U.N. Security Council meeting to address Russia's increased military presence that has escalated in the country's crisis. It comes as Russia prepares to send a second humanitarian aid convoy into eastern Ukraine. Last week, a truck convoy entered Ukrainian territory without the Ukrainian government's permission.

CNN's Phil Black live in Moscow for us.

We know there's been lots of evidence of Russians working inside the borders of Ukraine. Is this a full-scale invasion like the Ukrainian officials say?

PHIL BLACK, CNN CORRESPONDENT: Well, Christine, it's certainly much bigger than what Ukraine has claimed before. There are talks about incursions both humanitarian and military. But this -- it is a much bigger scale and it certainly is described as something closer to a military invasion.

The Ukrainian government says there are now Russian troops fighting in two specific areas, that are directly involved in this conflict, says Ukraine, near Donetsk, that major city, and further south, a long way further south on the coast. They are not just talking about a few APCs, they are talking infantry, armored vehicles and heavy weapons.

That second location near the coast, that's particularly a concern because there hasn't been much fighting in that region recently. It would be a mute front in this conflict.

Now, if this is true, what are Russia's intentions here? No specific comment from Russia yet, but there has been concerned from NATO, from the United States, for some weeks now, as Ukrainian government forces have gathered momentum, had significant military victories, looked poised perhaps for an outright military win in the region, that the greater the momentum swung Ukraine's way, the greater the chance that Russia could intervene directly to stop that, to disrupt that balance of military power that has become established in that region there.

There's another theory, a suspicion perhaps that Russia is now seizing that land in the south of Ukraine to try and form a land bridge, between the Russian mainland and Crimea, that peninsula that are annexed earlier this year.

These are just theories, though, at this stage, because Russia is not yet responding to the specific allegations, its position throughout the conflict, when it has been accused of involvement, sending weapons and fighters across the board, has been a very consistent, no, we are not involved, we are bystanders to this conflict, but we do want peace in the east of Ukraine -- Christine.

ROMANS: All right. Phil Black for us this morning in Moscow -- thanks, Phil.

Fifty-four minutes past the hour.

Wages may be shrinking but it doesn't stop employers from rewarding their top employees, that's right. The top guns are getting some serious money. We're going to tell you about it.

We have an EARLY START on your money, next.

BERMAN: Top gun.

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ROMANS: All right. Let's get an EARLY START on your money.

Stocks moving lower around the globe this morning. European shares down, Asian ended the day lower. And U.S. stock futures right now, you see Dow futures down about 21 points. If that holds, it would not be a record day for stocks, something we're getting use to, quite frankly. The S&P 500 eked out a third record close in three days yesterday, above 2,000 for a second time.

Wages are stagnant, but you know what? Bonuses are set for record highs. According to a new study by Aon Hewitt, companies are setting aside 12.7 percent of their payroll for performance based pay. These aren't guaranteed bonuses. This is for performance-based bonuses. It's to attract more talent.

Companies say even with a lot of people still looking for work, it's hard to find workers with skills they need. So, more companies are often big bonuses, wages are flat, but bonuses are making up a bigger share of what you are bringing home. It works out that bonuses will be about 10 percent to 20 percent of their base pay this year for most of employees. Top performers, you can expect 15 percent to 40 percent, that's right. So, that talent where I have been telling you about, alive and well according to those numbers. All right. America's favorite credit card companies are, sort of an oxymoron, Discover and American Express. That's according to a brand- new JD Power survey out this morning. American Express has been at the top of the list for seven years. Now, it finally has competitions.

Companies are favored thanks to top-notch customer service. That's so important. Overall, Americans are happier with their credit cards this year -- thanks to better reward programs. Yes, you have to pay us to be happy.

BERMAN: Make friends with your credit card.

ROMANS: Yes, that's right.

BERMAN: All right. EARLY START continues right now.

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