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Early Start with John Berman and Zoraida Sambolin

Mother Pleads with ISIS to Release Son; ISIS Threat in Iraq; Crisis in Ukraine

Aired August 28, 2014 - 05:30   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: The hunt for ISIS. President Obama weighing how to take down the terror group as that group continues to move through Syria and Iraq. This coming as the mother of an American journalist kidnapped by ISIS begs for his release.

What will this plea now do? We have live team coverage ahead.

CHRISTINE ROMANS, CNN ANCHOR: Safe at home. A freed American journalist held for nearly two years by terrorists sharing what he is grateful for this morning.

BERMAN: All right. Did Russian hackers attack Wall Street? The FBI investigating a cyber attack they say may have been all about revenge.

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

ROMANS: I'm Christine Romans. It's 31 minutes past the hour. I want to welcome all of our viewers here on this Thursday morning.

This morning hostage negotiators and intelligence experts are 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 STEVEN SOTLOFF: Steven has no control over the actions of the U.S. government. He's an innocent journalist. I've always learned that you, the caliph, can grant amnesty. I ask you to please release my child.

(END VIDEO CLIP)

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

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

And clearly, this was a very strategic and careful message appealing directly to the man who is running ISIS.

KARL PENHAUL, CNN INTERNATIONAL CORRESPONDENT: Yes, absolutely, Christine. And of course it goes much deeper than simply a plea for mercy for her son. Talking to a very experienced kidnap and ransom negotiator here in London has brought experience across the globe in these types of scenarios.

He says what is going on here really is that Sotloff's mom is trying to change the focus of the debate, trying to shift the focus on to Steven Sotloff as an individual, as a human being, trying to shift away from this idea that simply he's a pawn in a political game. A piece of chattel. Of course what she's trying to do as well is separate him very firmly as an individual from the U.S. government's policies in the region.

What's also interesting is that Sotloff's mom appealed directly to the central leadership of ISIS rather than the people on the ground believed to be holding him. And that, again, according to the kidnap expert we've been speaking to, is very important because what he says is the worst case scenario would be is that any victim in a kidnap situation is being held by a bunch of crazy hot heads who don't have really much experience.

He says ironically the best case scenario would be that any victim would be held by experienced kidnappers because they know realistically what they can demand and they also realistically know what they can negotiate for.

Now of course there's no suggestion right now that Steven Sotloff is being held for a financial ransom. The demands are much more political in character. But what the expert we talked to said was this is an effort to open lines of negotiation and to say hey, look, let's come to some kind of reasonable deal that could lead to his release -- Christine.

ROMANS: Lead to his release, but, you know, you talk about crazy hot heads. I mean, ISIS is, you know, exterminating people throughout two countries simply because they don't share the same version of their religion. In a way, it's hard to try to be strategic and try to be rational with these people.

PENHAUL: Well, certainly one as a layman looking at that would say yes, these people are crazy, what can we reasonably do here to try and get him out? But this negotiator we've been talking to has experience of dealing with apparently crazy people across the globe, people like communist rebels in Colombia, drug gangs in Mexico, as well as Islamist radicals in both Africa and Iraq.

And he says really what you've got to do is drill in there, find out who is in charge. Find out how the orders are going down from top to bottom. And then try and get everybody into the ballpark of what he says is what is reality, what can be reasonably done, what reasonably can't be done. And he said that it's quite certain that ISIS does have a group of experienced kidnappers, possibly the Chechen foreign fighters that cut their teeth kidnapping and fighting against the Russians years ago.

And that is what this appeal is designed to appeal to, the people in charge, the experienced guys here, that may say, OK, let's get back in the bounds of reality. Maybe there is a deal to be done here -- Christine.

ROMANS: Wow. Certainly very deadly and frightening negotiations indeed.

All right, Karl Penhaul. Thanks, Karl.

BERMAN: Deadly and on the move both in Iraq and Syria. The United States considering airstrikes and humanitarian aid drops for Iraqis facing a potential slaughter at the hands of the ISIS militants. This is in the town of Amerli. This is a town of Turkmen Shiites.

Anna Coren is covering this for us. She is live in the northern part of Iraq right now, in Irbil.

Anna, what's the latest?

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Well, John, as we know, this township has been under siege for some two months. But this situation is certainly very dire, that's what we're hearing from people who have family and friends in Amerli.

The militants, ISIS, have managed to cut off the power and the water. We hear that dozens of children have now died from dehydration and starvation according to (INAUDIBLE), the Turkmen foundation.

The situation is critical. There's no hospital in this township. Only one medical center trying to look after all the sick and the injured. We understand that there have been Iraqi helicopters fly in, deliver aid, deliver weapons to the local police, the volunteers who've quite literally picked up arms and have fought these militants, kept them at bay, certainly at the gates of this township. But it's not enough.

The U.N. Special Representative for Iraq appealing to the international community saying that a possible massacre could unfold in the township of Amerli unless it gets the help that it so desperately needs. We know that the Iraqi military is now sending in reinforcement to fight those ISIS militants. But the appeal is for U.S. airstrikes.

Obviously, we know the United States has kept its limited mission to northern Iraq, to us here in Irbil to protect the capital of Kurdistan as well as Mosul Dam. That very critical piece of infrastructure that ISIS seized early this month. Kurdish forces managed to take it back last week.

But now the appeal is for the United States to expand this mission across the areas where ISIS is attacking these towns, these villages and certainly threatening these communities. As U.N. representative said, you know, this is a township that is facing extermination.

ROMANS: All right, from Irbil, Iraq this morning, Anna Coren. Thank you -- Anna.

BERMAN: American journalist Peter Theo Curtis making his first public statement since being released after nearly two years in captivity in Syria. Curtis says he is grateful beyond words to those who worked so hard for his freedom and to the welcome home 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. And now, having found out, I am just overwhelmed with emotion.

I'm also overwhelmed by one of the things, that is that total strangers have been coming up to me and saying, hey, we're just glad you're 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)

BERMAN: It's great to see him doing well.

Curtis told his fellow journalists that he understands their interest in the story, he appreciates them all being there. But, before he answers their questions, he needs time to decompress and most importantly, bond with mom.

ROMANS: I can't imagine what kind of re-entry that must be for him. You know, he was on a flight. You know, he comes to Newark. He goes on to another flight to Boston, he sees his mother. There's reporters outside his house, his phone is ringing off the hook.

BERMAN: Let me say this. You know, we see him today, this week, you know, Bowe Bergdahl, don't forget, he came back after years in captivity.

ROMANS: Yes.

BERMAN: And he had all that reintegration. It's a very different process here and I'm curious why that is.

ROMANS: Yes. Interesting.

All right. The FBI this morning investigating coordinated cyber attacks on JPMorgan Chase and some other banks -- major banks, possibly stemming from Russia. That's what the investigation is for here. Experts say that the attack was sophisticated. Hackers were able to break through bank security and steal account information. A U.S. official told CNN the extent of the damage and where the hack came from still is not clear.

But hackers from Russia are often top FBI suspects and the timing of the hack has raised suspicions given U.S. sanctions against Russia. In response to the breach, JPMorgan said companies of its size experience cyber attacks every day. The bank has measures it said to protect itself. What's really interesting here, was it account information that they

were going for or was it espionage about oil and gas contracts, oil and gas trading looking at the trading on those desks? So that's what they'll be looking into.

Want to get a quick check of the markets here. European shares moving lower. Asian shares ended their day lower. U.S. stocks also might be ready for a pause. Futures pointing down right now. The S&P 500 closed above 2000, the 2000 level for the second day in a row yesterday.

It has been a really quite a run.

BERMAN: It's a streak now.

ROMANS: You know, I'm just telling you, since -- over the past five years, you know, $1,000 in the S&P 500 five years ago is worth $3,000 today. I mean, that's just been quite a run.

BERMAN: All right. Not so good times on the coast. Some dangerous rip currents on both sides of the country. Hurricanes causing this. The waves have turned deadly.

Indra Petersons is tracking the storms right after the break.

(COMMERCIAL BREAK)

BERMAN: Powerful storms in the Atlantic and Pacific. They are staying away from land. But look at what they are creating. Huge waves and also some dangerous rip currents on both coasts. So, though, leave it to a surfing legend to just ignore the warnings and go for a ride.

(LAUGHTER)

(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're -- we spend our whole life waiting for -- you know, the storm of our lifetime.

(END VIDEO CLIP)

BERMAN: It doesn't mean it's not dangerous. It is.

ROMANS: The waves are like 20 feet. His shoulders are like 19 feet. He's got a better chance --

(CROSSTALK)

BERMAN: There you go again with the shoulders.

ROMANS: I'm just saying.

BERMAN: It has to be about the shoulders. ROMANS: I'm just saying. He's a professional.

BERMAN: The danger there is very real. I mean, hundreds of water rescues in the Pacific. But a lot of --

ROMANS: Not of him.

BERMAN: Not of him. The violent death -- the violent surf, though, did lead to one surfer's death.

ROMANS: I know. But people get lulled into thinking it's like a once in a lifetime thing and then they get into trouble.

Indra Petersons now with a look at your forecast.

That Maria really churning it up out there.

INDRA PETERSONS, AMS METEOROLOGIST: Yes, you'll have to remember, it was a category 5 system. Pretty rare to have it that close towards California. So with that, we're talking about those strong rip currents. Still, very high surf. Twenty-five feet, guys, out toward the wedge.

And remember, we have Cristobal on the East Coast. So we're talking about the risk of these high rip currents not only on both coasts but also around the gulf thanks to another tropical disturbance out there.

I want to show you how dangerous, of course, Marie was. Look at the damaging waves that happened out towards Catalina Island. We're talking about destruction to the pier. You can actually see that this morning. Marie reports now of both of the piers sustaining many reports of damage in the region.

And notice this. Look at how powerful these waves were. You're talking about trucks overturned. A lot of the boats in the region out towards Catalina also being reported as overturned. So that's the concern, that is the danger that's out there. Considering that it is just ahead of Labor Day weekend. These storms are still making their way through the region. Now we're looking at Cristobal still a hurricane, still strengthening, even though we're kind of in these cooler waters. Eighty-five-mile-per-hour expected.

But look at what it's going to doing to the surf. We're talking about wave height even up to 12 feet out in Atlantic. With that, reports we have the strong rip currents. People can identify those most likely, those kind of murky waters that are out of the way. Not a time to be going into the water with such a dangerous surf both coastline.

In the Midwest, that's where we're talking about those heavier showers so keep that in mind as go towards Labor Day weekend. Definitely seeing some scattered showers there and into the south. But wow, unbelievable. I mean, literally could not go to bed last night, I was looking at all of these waves. Very, very rare even in Southern California.

BERMAN: And you told us this was going to be an issue on both coasts and it has turned out to be a big deal.

PETERSONS: Yes, that's right.

BERMAN: Lesson here, always listen to Indra.

PETERSONS: I like the (INAUDIBLE).

ROMANS: Thanks, Indra.

Let's take a look at what's coming up on "NEW DAY." Alisyn Camerota joins us now.

Hey there.

ALISYN CAMEROTA, CNN ANCHOR, NEW DAY: Hey, Christine. Great to see you and John. So we will have much more this morning on that desperate plea from the mother of an American being held by ISIS. Steven Sotloff's mother, Shirley, is begging terrorists to spare her son. So we will examine that video.

Plus the conflict between Ukraine and Russia reaching a boil today. Ukraine says Russia has invaded their territory, accusing Vladimir Putin of starting a war. Top Ukrainian officials are calling for the U.N. Security Council to get involved even though Russia has a prominent seat. So we'll have the latest on that and so much more when "NEW DAY" begins at the top of the hour.

See you then.

BERMAN: Looking forward to it.

CAMEROTA: You too.

ROMANS: We are also following that crisis in Ukraine and that country providing new evidence that Russia is sending in soldiers to fight with separatists so we're going to head live to Moscow right after the break.

(COMMERCIAL BREAK)

ROMANS: Welcome back. Ukraine says Russian troops are now directly involved in the fighting in eastern Ukraine. Battling government forces on several fronts. A military commander says it is a full scale invasion. Ukraine's prime minister calling for an immediate U.N. Security Council meeting to address this crisis.

CNN's Phil black live in Moscow for us.

Is this just more incursion, something we've seen, or is this as Ukrainians say, something new and actual invasion?

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: You're right, Christine, a lot of allegations in Ukraine about incursions in recent weeks and months. But this, as it is described, is much bigger. A military operation is what they are describing, potentially an invasion. What they are talking about a Russian military unit involved directly

in the fighting in two locations near Donetsk, that key city, and also near the port city of Mariupol. They are talking about infantry, armored vehicles and sophisticated heavy weapons and anti-aircraft weapons as well.

So this is a large-scale military operation. That second location down by the coast, that's concerning because there hasn't been any fighting in that region before. This is a new front. So it raises questions about what are Russia's intentions if these reports, these allegations are true.

There has been U.S. and NATO concern that the greater the success of the Ukrainian military in recent weeks in fighting the rebels to the point where they look poised for an outright military win, well, the greater chance that Russia could potentially intervene to try and disrupt that balance of military power, to try and swing the momentum back towards the rebels.

So if this is what is happening, it is perhaps one theory. We heard from a rebel leader today interviewed by Russian state media to acknowledge that there are Russian soldiers fighting with them. But he says they are either veterans or on vacation choosing to spend their holiday time in eastern Ukraine fighting for the pro-Russian rebels.

We heard that before. but he put a number on it today, 3,000 to 4,000. That many. And he says that that is having a decisive impact on the way the fight is going. If that is true, it could explain to some degree why there are so many Russians in eastern Ukraine at the moment but it would not necessarily explain the presence of armored vehicles and heavy weapons and those sophisticated air defenses as well -- Christine.

ROMANS: Fighting with separatists while on vacation.

OK, Phil Black, thanks for that, though, in Moscow.

The United Nations Security Council passing a resolution concerning the intense fighting in Libya demanding an immediate cease-fire there. The Security Council's resolution includes sanctions against those involved in the violence between rival militias. Libya's ambassador to the U.N. called the resolution a milestone, but has warned that a full-blown civil war in Libya.

Coming up I just want to say one word to you, one word, plastic. What are America's favorite credit card companies? That's next.

(COMMERCIAL BREAK)

ROMANS: Let's get an EARLY START on your money this morning. Stocks moving lower around the globe. European shares are down, Asian shares ended the day lower. It looks like U.S. stocks taking a pause from the latest rally. U.S. stock futures pointing lower at the moment. The S&P 500 hit a record high yesterday. Its third day in a row. It closed above 2000 for the second time ever. All right. Wages are stagnant, but bonuses, bonuses are set for

record highs. According to a new study by Anne Hewitt, companies are setting aside 12.7 percent of their payroll for performance based pay. Why? To attract more talent. Companies say even with a lot of people still looking for work, it's hard to find workers with the skills they need. So more companies are offering bigger bonuses.

Average workers should expect bonuses around 10 percent to 20 percent of their base pay this year. Top performers can expect 15 percent to 40 percent.

America's favorite credit card companies are 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. And now it finally has some competition. The two companies are favored because of top-notch customer service. Shares of two companies not at the top, Visa and MasterCard, both of those are down right now in pre-market trading.

"NEW DAY" starts right now.