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Early Start with John Berman and Zoraida Sambolin

President Obama Vows to Work with Congress; The War on ISIS: Obama Looks to Congress; Abducted Nurse Found Alive

Aired November 06, 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 election is over but the hard work in Washington is just beginning this morning. President Obama congratulating Republicans on their big win, vowing to work with GOP leaders in Congress but promising a fight if they won't meet him halfway.

The new developments overnight ahead.

JOHN BERMAN, CNN ANCHOR: A new strategy for how the U.S. will fight ISIS in Syria. The president says he will now ask Congress to get involved. We're going to be live with what this means for the war there.

ROMANS: Breaking overnight, new developments in the violent abduction of a Philadelphia nurse, found alive. Her suspected captor arrested. We're bringing you the very latest on this, this morning.

Welcome back to EARLY START. I'm Christine Romans.

BERMAN: Great to see you this morning. I'm John Berman. It's 29 minutes past the hour.

President Obama faces a drastically changed landscape this morning. With Republicans about to take control of both houses of Congress, the president wasted no time extending an olive branch in a very big, highly anticipated news conference. But he also made a point of arguing for his own continued relevance.

CNN's Michelle Kosinski breaks it down at the White House.

(BEGIN VIDEOTAPE)

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, John and Christine.

Well, in a tone that sounded resigned, the president responded to this loss, even that it was in part a vote of lost confidence in him, even though it was in part of a vote of loss confidence in him.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: What stands out to me, though, is that the American people sent a message. So to everyone who voted, I want you to know I hear you, and to the 2/3 of voters who chose not to participate in the process yesterday, I hear you, too. KOSINSKI: OK. So, he said now is the time that we have to work

together. He committed to actively reaching out to Republicans, to finding the common ground, to get certain things finally done, you have to wonder, though, why wasn't all of that going on for the last two years? But now instead of it being Democrats and Republicans locking things up between the House and Senate, it's going to be in some ways Republican votes up against the president's veto power.

And he made it clear that even though he is all about compromise, he is willing to use that power. There are certain lines that he's not going to let Republicans cross. On health care for example, he said, yes, well, it's not a perfect law. There are ways that he might be willing to change it, but he is not going to allow votes by Republicans to try to repeal Obamacare or take away chunks from it that would essentially be repealing it.

But the big one is immigration reform. So, we heard him say, let's sit down. I want to hear Republican ideas, see ways that we might work together. But if they don't act, as they haven't acted on immigration, then I'm going to take executive action, work for amnesty for possibly millions of undocumented immigrants in this country.

That's something that infuriates Republicans. But he said he is willing to do it. He will do it if Congress doesn't act. And, you know, they could after the fact and pass something that he said would supersede executive action, seeming to temper it there. But it looks like this is going to happen and before the end of the year -- John and Christine.

(END VIDEOTAPE)

ROMANS: All right. Thanks for that, Michelle. Republican leaders of the House and Senate, John Boehner and Mitch McConnell, sounded their own notes of compromise and toughness Wednesday. In an opinion piece for "The Wall Street Journal", they pledged partisanship, while laying out a familiar agenda that includes repealing Obamacare, approving the Keystone pipeline and tax reform.

Boehner and McConnell mock the Democrats one party rule of Congress during Obama's first two years, writing, "We won't repeat the mistakes made when a different majority ran Congress in the first years of Barack Obama's presidency, attempting to reshape large chunks of the nation's economy with massive bills that few Americans have read and fewer understand."

The Republican leaders finished with a vow, "The skeptics say nothing will be accomplished in the next two years. As elected servants of the people, we will make it our job to prove the skeptics wrong."

President Obama also signaled a big change in the war on ISIS, calling for authorization from Congress for the use of military force. This marks a significant reversal of the administration's claim up to now that use of force authorizations against al Qaeda and Saddam Hussein were enough.

I want to turn to international correspondent Nick Paton Walsh for more on this.

Good morning, Nick.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Christine, it is, of course, key to the notion of how long the ISIS campaign may go on, that Barack Obama now feels with the totally Republican Hill that he needs to seek further authorization from and then perhaps, too, he's trying to get the Republicans to lay out what their anti- ISIS strategy would be if they are to oppose or debate the current policy.

But it did today, the White House's policy, take something of a shift, as far as we can tell. The Syrian Observatory for Human Rights overnight reported a number of airstrikes in the northwest of Syria near a town called Idlib. Now, these, they say, target the al Nusra Front, they're an al Qaeda affiliate who t also struck on the very first day of the U.S. airstrikes, but also struck a different group, not hit before and not considered terrorists by this stage by the United States. They are known as Ahrar al-Sham. Now, while they have at times fought alongside Nusra, coexisted with Nusra in a very complicated Syrian battlefield, they are considered to be comparatively moderate.

So, it presents a complex issue for U.S. policy if it indeed was coalition airplanes behind the explosions that hit Ahrar al-Sham's political headquarters near the town of Idlib overnight. That suggests the U.S., if it is the case, widening the targets they are willing to hit and included in groups who are not actually on the terror list at this point. That will be a lot of questions for Washington to answer when it gets going today and, of course, suggests that the U.S. is seeking to anybody it is not particularly comfortable with Syrian rebel ranks, if that is indeed the case. So far, hitting Nusra has upset some Syrians who considered Nusra to be their protectors in that civil war against the Syrian regime.

Remember, the Syrian regime are killing Syrian civilians on a daily basis. If it turns out Ahrar al-Sham are also being hit, that may as well raise the anger of some Syrians -- Christine.

ROMANS: All right. Nick Paton Walsh for us this morning live -- thank you for those developments.

BERMAN: The president says nearly 4,000 troops deployed to Liberia. They will not be treating Ebola directly, but more than 70 doctors and nurses from the U.S. Public Health Service Commission Corps will begin treating infected health care workers in Monrovia this week. That group is part of the Department of Health and Human Services.

The president is also asking Congress for more than $6 billion in emergency funding to fight the Ebola outbreak in West Africa. That will be part of the president's meeting with congressional leaders on Friday.

Dr. Craig Spencer appears to be gaining the upper hand in his battle with the Ebola virus. The New York doctor is said to be improving at Bellevue Hospital, listed in stable condition. What do the papers say about him this morning?

ROMANS: They said he is playing his banjo and riding a stationary bike. He's a little bored in isolation.

BERMAN: He's doing so well that he's bored and wants to play the banjo.

City health officials tell us that one person who was quarantined after coming in contact with Dr. Spencer has now been released and is Ebola free.

ROMANS: Nothing raises your spirits like playing the banjo, even in isolation.

BERMAN: That's right.

ROMANS: More than 24 hours after polls closed across the country, the gubernatorial races are still up in the air this morning. Senate races in Alaska and Virginia remain too close to call. And a third race in Louisiana is heading to a runoff next month.

Among the gubernatorial races that have close finishes, Vermont and Alaska, are still yet to be resolved.

Time for an early start on your money this morning, call it the GOP rally. U.S. stock futures down a bit right now, this morning, after that record day yesterday. The GOP rally day yesterday. The Dow jumped at open, climbed 100 points to close at report. The S&P 500 also finished the day at a high. Investors are hoping more Republican leadership means more pro-business policies or less regulatory oversight. European stocks climbed on the GOP.

But today's focus shifts to the European Central Bank. It has a policy meeting, John. Stocks are lower. Asian stocks ended mixed.

I want to show oil prices still very -- look at this -- 78 bucks a barrel right now. Gas prices are falling with it. A gallon of regular costs $2.95 on average nationwide. A lot of people talking about what Republican leadership of the Senate and House will mean for energy policy in this country. For Keystone pipeline, for new source of drilling, for regulation of we're already drilling and for exports.

BERMAN: Yes, the president noted yesterday, though, by the way that the industry has been booming already and it would be hard to make it that more hopping than it already is.

ROMANS: All right. Breaking overnight, amazing developments in the story of the kidnapped nurse. She has been rescued this morning, found alive after the violent abduction caught on camera. Who police have charged now with the crime, ahead.

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ROMANS: A dramatic development in Philadelphia as a woman whose abduction was caught on video found alive in Maryland. Carlesha Freeland-Gaither is already out of the hospital. Her alleged kidnapper, he is behind bars this morning. The developments come as much-needed relief to her family.

(BEGIN VIDEO CLIP)

KEISHA GAITHER, MOTHER OF KIDNAPPING VICTIM: She was very upset. She was crying. She just was asking for me, to tell me she loved me, she missed me, to come get her.

REPORTER: What did you say to her?

GAITHER: I'm going to get my daughter. I'm going to get my daughter.

CHARLES RAMSEY, PHILADELPHIA POLICE COMMISSIONER: He is a vicious predator. He is off the streets and hopefully he will be in jail for the rest of his life. That's the only thing he deserves.

(END VIDEO CLIP)

ROMANS: So, how did police track the pair down? CNN's Jean Casarez has the latest.

(BEGIN VIDEOTAPE)

JEAN CASAREZ, CNN CORRESPONDENT: Police made the announcement after 7:00 last night that Carlesha Gaither has been found alive. She was found in Jessup, Maryland. And police say she was in the car of her abductor pulled over to the side of the road. They were able to locate him because they were able to locate his vehicle.

They moved in, they apprehended him and they rescued her. She was taken to the hospital with minor injuries, police say.

They began to question her. She's been through a lot but they will find out more in the upcoming days. They do believe, though, this is a stranger abduction.

Now, it was just Sunday night at 9:40 and you can see the video here. It is extraordinary horrific video of a kidnapping caught on tape from a surveillance camera that happened to be on and rolling that Sunday night.

As you can see, her kidnapper, with purpose, walks across the street, walks down to where it is believed she got off a bus, finds her, introduces himself or speaks to her and minutes later, the kidnapping begins. She can hardly struggle because of the force of that kidnapper as he walks up her that street toward his car. She fights and loses her cell phone. He actually gets her into his vehicle.

The windows of the back passenger area were broken out by Carlesha, but he sped off. There is video of him taking her ATM card to get money and going to a convenience store. But it's that that surveillance video that helped locate who we know as 37-year-old Delvin Barnes being held this morning on attempted murder out of Virginia, waiting federal charges in this case in Pennsylvania -- John and Christine. (END VIDEOTAPE)

BERMAN: We will stay on that dramatic developments overnight.

Meanwhile, activists in Ferguson, Missouri, they are hoping to head off any potential problems with the grand jury deciding not to indict Darren Wilson for the shooting of Michael Brown. Members of the Don't Shoot Coalition are asking prosecutors for 48 hours notice before announcement is made to the public. That request is now being considered. The grand jury decision is expected to be handed up by the middle of the month.

A federal grand jury now hearing testimony on whether George Zimmerman violated Trayvon Martin's civil rights when he fatally shot the Florida teenager in 2012. Zimmerman, you will recall, was acquitted of second degree murder in the criminal case last year.

ROMANS: All right. Former Baltimore Ravens running back Ray Rice and his wife expected to testify today at his appeal hearing in New York. Now, Rice claims the NFL violated the league's collective bargaining agreement and subjected him to double jeopardy by extending his two- game suspension to indefinite ban after the video surfaced of Rice punching out his then fiancee in an elevator. Roger Goodell testified for more than two hours Wednesday.

BERMAN: All right. Sports news. Alex Rodriguez -- if you believed him when he said he didn't do steroid this time -- well, maybe you were wrong. He reportedly admitted to DEA agents that he paid Biogenesis founder Tony Bosh for testosterone and human growth hormone between 2010 and 2012.

Now, in public, Rodriguez denied any connection with Bosh. "The Miami Herald" says the admission came after Rodriguez was granted immunity from prosecution that comes on the heels of another report that he paid his cousin nearly $1 million to keep quiet about the use of performance enhancing drugs. I will make this public service announcement. Alex Rodriguez is under contract for three more years and more than $60 million.

ROMANS: Do you think -- are we going to see him play again? Is he going to weather this thing?

BERMAN: Yankees have to pay him. I don't know. I mean, he weathered. He was suspended for 162 games. That's over. Now, he is part of the team. The Yankees have to decide if they want him on the field or if they pay him $60 million to go away.

ROMANS: Sixty million dollars.

All right. Forty-six minutes past the hour. Virgin Galactic forging ahead. Just one week after losing SpaceShipTwo in a deadly dramatic crash. The company's announcing plans to resume test flights as early as next year if it can finish construction of the new craft in time. Now, the company also confirming 20 customers who plunked down $250,000 each to reserve their spot on the future flight to space, 20 customers have now asked for a refund. BERMAN: Forty-six minutes after the hour. The legal battle not over,

but supporters of same-sex marriage celebrating after a Missouri judge overturned that state's ban, ruling that it was unconstitutional. Missouri's attorney general appealed the decision but has not requested a stay of the judge's order, which allows same sex marriage ceremonies to proceed.

ROMANS: Berkeley, California, the first city in the nation to approve a soda tax. The measure was approved overwhelmingly in Berkeley and imposes a penny an ounce on sugary drinks. Soft drink makers spent more than 10 million bucks to defeat this new law, but a large infusion of cash from Michael Bloomberg helped fund last pro-tax advertising. Bloomberg tried unsuccessfully to ban super size sugary beverages when he was mayor of New York.

BERMAN: The total figure for what he spent is staggering. I wish I had it. I think it is $40 million of his own money he spent in this campaign?

ROMANS: He's got a lot of his own money to go after these causes he really feels. Mayors Against Illegal Guns, this -- the sugary tax ban. Sugary soda tax.

BERMAN: He's got a lot of his own money, period.

ROMANS: Yes.

BERMAN: Just the first sighting, folks in North Dakota know there is a lot more snow to come in the months ahead. About 2 inches fell in the first snowstorm there, barely enough to make North Dakotans notice. But as we said more is on the way, let's get a check on the weather with Chad Myers -- Chad.

CHAD MYERS, AMS METEOROLOGIST: A very good early morning to you there in the Northeast, although not as nice as yesterday.

Rain does move in, clouds move in, and then the cold air comes in for tomorrow afternoon behind the cold fronts. And we will see a drop in temperatures. It doesn't even warm up that much today across the Northeast actually. Temperatures will be in the 50s, 54 in New York City, 65 in D.C., and that warmer to the South, but almost 69 to about 70 in Atlanta, Georgia, for later on this afternoon.

There goes the front for tomorrow. That's the cold air. It's going to be a cold Hudson Hawk blowing down the Hudson River come afternoon. Temperatures going to be about the same as today, but certainly just no chance of any significant warm up throughout the afternoon. It's going to get cold again for the weekend. High tomorrow is 51 in New York, but 55 in D.C., and 58 in Atlanta. So, that cold air is going to make its way down to the Gulf Coast.

Guys, enjoy your day. Back to you.

BERMAN: Thanks, Chad.

So, a big night in the world of country music. Luke Bryan won top prize Entertainer of the Year at the Country Music Associations Awards in Nashville. Miranda Lambert took four awards of CMAs, including Female Vocalist of the Year. Her husband, Blake Shelton, was named top male vocalist.

ROMANS: You have been humming country music all morning.

BERMAN: All morning.

ROMANS: All morning long.

All right. Forty-nine minutes past the hour.

Pedestrians targeted in the attacks on the streets of Jerusalem. Who police say is behind the terrifying moments, next.

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BERMAN: Israeli officials are investigating possible terrorist attacks after two incidents of Palestinian drivers slamming their vehicles into crowds in Israel. We have the video. It is tough to watch, we should warn.

Officials say a police officer was killed and more than a dozen others injured in the attacks in the latest. The Israeli military officials say a freight truck slammed into a group of Israel soldiers near the West Bank. The driver fled, sparking a huge manhunt.

ROMANS: It is the latest indication of the strained relations between the U.S. and Russia. Moscow now announcing it will not attend the 2016 Nuclear Security Summit in Washington in 2016. The Russian ambassador to the U.S. says while they're committed to nonproliferation, they see no added value in big splash meetings. And he says Russia is disappointed with how Vladimir Putin has been demonized in the U.S. media.

BERMAN: U.S. prosecutors are launching a money laundering investigation into a member of Vladimir Putin's inner circle. That's according to the "Wall Street Journal". Billionaire Russian gas trader Ganadi Timchenko allegedly transfer funds from corrupt oil deals in Russia through the U.S. financial system. U.S. attorneys office in New York is heading up the investigation with an assist from the Justice Department.

ROMANS: All right. So now the Republicans control both houses of Congress, the chess board has been reset. What does this mean for your tax bill? We're going to get an early start on your money, next.

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ROMANS: Welcome back. Let's get an early start on your money this Thursday morning.

Republicans win. Stocks with records. U.S. stocks down at this moment after the record day yesterday. Look at that record day, Dow jumped at the open, closed at a record high. The S&P 500 also finished the day at a high. Investors are hoping more Republican leadership means less regulation.

Oil prices are still low this morning. About 78 bucks a barrel right now. Gas prices are falling $2.95 a gallon this morning is the nationwide.

All right. So, Republicans won. What now for taxes? Overhauling the tax code is, let's just say it is complicated to say the least, there are some things both sides can agree on when it comes to corporate tax reform.

Republicans and the president say the corporate income tax rate should be lower and corporate taxes could still bring in as much revenue as before. They disagree on how low that top tax rate should be and they're likely to disagree on which tax breaks to eliminate. And there are a lot of tax breaks.

So, analysts say a big overhaul is very unlikely in the next few years. More than a dozen Congress members were defeated on Tuesday night, but they still get government money. Members of Congress are eligible for a pension after just five years. So, that means senators qualify after just one six-year term.

For example, North Carolina's Kay Hagan lost her first bid for reelection. She will still get about 10 percent of her annual pay or $17,000 a year. Colorado's Mark Udall who served longer will get about $47,000 a year put into his pension to be tapped as early as --

BERMAN: Five years for vesting is actually not a short period of time. Defined benefit pensions are a lot more rare than they used to be, but they still exist. And generally speaking, you invest, at least the ones I have seen, sooner than five years. That sounds bad, or -- you know, the tax --

ROMANS: Most workers are being forced to foot the bill for their own retirement.

BERMAN: Sure.

ROMANS: So, you know, defined -- the pension is something that most of us will not have the opportunity.

BERMAN: Correct. But I don't know that members of Congress, by the way, have 401(k)s. We'll look into that.

All right, EARLY START continues right now.