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Early Start with John Berman and Zoraida Sambolin

New ISIS Video Threatens Hostages; State Of The Union Preview; Oil Holds Below $50 A Barrel; MLK Day Marked By Protests; Ukraine Claims Russian Forces Entering

Aired January 20, 2015 - 05:30   ET

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

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ANNOUNCER: This is CNN breaking news.

JOHN BERMAN, CNN ANCHOR: The breaking news this morning: a chilling new threat from ISIS, warning they will hostages, new hostages, if their demands are not met. This as a desperate push to stop terror in Europe. Leaders from across the continent try to figure out how to prevent future attacks. We have live team coverage beginning right now.

Welcome back to EARLY START, everyone. I'm John Berman. About thirty minutes past the hour. Christine Romans is off today.

And the breaking news this morning -- a chilling new video from ISIS threatening to kill new hostages. This time, it appears to be an attempt to extort $200 million from the Japanese government.

Let's get the latest on this. CNN's Will Ripley covering everything, with the latest. Good morning, Will.

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: John, the timing of this, and the figure of $200 million is significant, because just two days ago, during his trip to the Middle East, which is still happening as we speak, Japanese Prime Minister Shinzo Abe pledged $200 million to help in the fight against ISIS. And then that terror group responsible for the deaths of so many people, and the executioner believed to be Jihadi John, seen on tape executing two Americans and two British citizens, has now appeared in a new video with two Japanese citizens kneeling by his side. Listen to what he said.

(BEGIN VIDEO CLIP)

JIHADI JOHN, ISIS EXECUTIONER: To the prime minister of Japan, although you are more than 8,500 kilometers away from the Islamic State, you willingly have volunteered to take part in this crusade.

(END VIDEO CLIP)

RIPLEY: The prime minister says he is furious about this threat against the lives of two Japanese citizens. Even in pledging the desistance to ISIS, Abe insisted that this would be non-military assistance. Japanese only have a self-defense force. They very much do not want to send their soldiers into positions where they may be harmed. Now the two citizens, Kenji Goto, the journalist who posted on Twitter in late October and then wasn't heard from after that, after covering the crisis in the Middle East, describes himself as a war reporter.

On the right, Haruma Yukawa, who owns a private military company, he was taken in August. Just a very difficult time for their families right now and for their hometowns in Japan and for this country, a pacifist country that has two of its citizens in very grave danger at the hands of ISIS -- John.

JOHN BERMAN, CNN ANCHOR: Well, you've said that the Japanese government officially does not pay ransom for hostages, any sense there might be some wiggle room there?

RIPLEY: When the prime minister was questioned specifically about whether japan would be willing to pay the $200 million figure, the prime minister did not answer specifically. He is only saying that he is appointing one of his top officials to do everything possible to secure their release.

As you mentioned, Japan has never officially paid ransom, but there were some hostages released from Iraq several years back where there was some speculation that there might have been an under the table deal.

Clearly $200 million is not a realistic figure. Whether there are back channel negotiations to try and get that number down. It's something we'll be watching very closely to see what happens in the coming days -- John.

BERMAN: Of course, our hearts go out to the families of those men seen in that video. Will Ripley covering that for us, thanks so much.

It's 31 minutes after the hour, happening this morning, authorities are searching for the man they say is the ring leader of the terror cell raided by police in Belgium last week, a man they say is linked to ISIS.

A senior Belgian counter terrorism official tells CNN that the man's name is Abdelhamid Abaaoud and that he dropped off the radar in Greece. Also breaking this morning, some 200 German police officers raided 13 locations in three metro areas overnight.

All part of an investigation into two alleged Islamists, who were arrested on Friday. I want to go now to Paris and our senior correspondent, Nic Robertson, is there.

Nic, there have been developments overnight in France with some suspect there believed to be connected is some way to the attacks a couple of weeks ago.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: John, that is right. The French authorities released five suspects late last night. Four remaining in custody will go before the magistrate today. They are all young men in their 20s.

We are told that we will hear the charges against them after they have been in front of the magistrate, which should give us a little more information about why the police believed that they should continue to be held.

Of course, those five released have been questioned by police here. While this is going on in France, in neighboring Germany, those arrests by police, 200 police in 13 different locations raided.

What we understand from the German authorities is that these raids are not linked to imminent threat. More to their counterterrorism investigations related to those two men, who were arrested last week.

But of course, the whole of Northern Europe at the moment very much on heightened state of alert and the Belgium authorities awaiting extradition from Greece of a suspect Greek authority has rounded up at the request of the Belgium authorities.

He will be transferred back to Belgium custody for questioning in relations to arrest there -- John.

BERMAN: Nic Robertson for us in Paris. The developments in Paris, in Greece, and in Belgium, give you the sense of why European officials are scrambling this morning to ramp up their counter terrorism efforts. Officials are meeting in Brussels.

They have been discussing methods and ways to better fight terror. Many of the ideas have been in place in the United States for some time. I want to go to our senior international correspondent, Ivan Watson, who is in Brussels now for the latest. Good morning, Ivan.

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, John. European foreign ministers emerged last night from the first meeting since the shock of the deadly "Charlie Hebdo" attacks in Paris and since an alleged Jihadi plot to attack police officers was foiled here in Belgium.

They emerged from that meeting with calls for more coordination between European countries and with the Middle East. One of the proposals on the table is to try to share more data about passengers on flights in and around Europe.

That's a motion that has been proposed in the past, but actually been pushed down, vetoed by the European parliament seeking to protect privacy for European citizens.

Take a listen to the European foreign policy chief, who also said there needs to be more of an outreach to not only Arab speaking citizens in Europe, but Arab speaking neighbors around the Mediterranean basin. Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I think we need to improve our capacity to speak Arabic and read Arabic and explain to the Arab speaking population our policies and also to listen to the messages that are coming from the Arab world.

(END VIDEO CLIP)

WATSON: And she had also held a meeting, John, with the secretary- general of the Arab League. So there seems to be more of an understanding that this is not just a home grown European problem, but regional problem where Europe needs to engage more on the counterterrorism effort with Middle Eastern, with Arab countries -- John.

BERMAN: Obviously the discussions have more urgency now given the developments all over that continent. Ivan Watson for us in Brussels, thanks so much.

New this morning, protests turning deadly. Demonstrators in the West African nation of Niger were furious with the French magazine "Charlie Hebdo." Demonstrators took to the streets. At least ten people have died and four dozen churches set on fire.

Many hotels and bars were also burned to the ground. The governor of Niger declared three days of mourning for the victims of the violence.

In Yemen, a cease-fire appears to be holding this morning after fighting Monday around the presidential palace. The U.S. backed government in the capital of Sanaa says the fighting is part of an effort by a Shiite-Houthi insurgent group to grab power.

This is a major concern to the United States and western governments. The situation there is already creating a power vacuum. Al Qaeda in the Arabian Peninsula, which is based in Yemen has been able to capitalize on that to increase their number and build recruits.

Happening today, President Obama delivers the State of the Union address in primetime. He will do so facing a new political environment. For the first time, he will speak to the Congress under complete Republican control.

CNN's Jim Acosta has the preview of the president's speech -- Jim.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John, even though, the White House shared much of what will be in the president's "State of the Union" address. Over the past couple of weeks, a senior official told me there are still some surprises in store.

The White House says the theme of the speech will be middle class economics and the address will be filled with pitches from the president like those tax breaks he's proposing for middle income earners.

Now those credits plus the free community college idea Mr. Obama has already talked about, they add up to well over 200 billion. The president would pay for that with new taxes on the rich and fees on the big banks.

We are learning more about the message. Alan Gross, the American freed from the Cuban prison as part of the deal to normalize relations between the two countries, he will be in the first lady's box.

White House officials say the president is feeling embolden with the economy and executive actions on immigration and Cuba that performed well in the polls. The president's approval ratings are ticking up.

With the numbers, it is no surprise the president will be taking his "State Of The Union?" message will be on the road to red states for events in Idaho and Kansas later on this week -- John.

BERMAN: All right, our thanks to Jim Acosta, at the White House.

Harry Reid, the Senate minority leader plans to return to work today. The 75-year-old is still being closely monitored by doctors after suffering four broken ribs and several broken bones around his right eye. He suffered an accident exercising last month.

Badly hurt. His new schedule has not been set. He is not expected to attend the "State Of The Union" address tonight. Senator Reid admits it is possible he could lose vision in his eye, the one that he entered in that accident.

Senate Republicans forging ahead with the bill to begin construction of the Keystone oil pipeline. They could vote on amendments to the measure by this afternoon. The battle over the $8 billion pipeline could drag into February. The president has already promised to veto this version of the bill.

Let's talk about your money. Alison Kosik has the early look at that. Good morning.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Let's do that especially because we are seeing lots of green arrows in global markets this morning. Markets in Europe markets are slightly higher. About two hours into the trading day there. U.S. markets, futures here pointing higher. U.S. markets closed Monday because of the Martin Luther King holiday.

Also we are keeping an eye on oil prices, prices holding below $50 a barrel. Overnight, China clocked in with the GDP numbers showing the global growth continues to slow down. That is part of the reason we are seeing oil prices continue to fall. Less demand for oil won't chip away at the growing supply of oil.

Meantime, Saudi Arabia considered key player in oil prices is content to let the market dictate supply and demand for now instead of cutting production.

Forty nine deaths have now been linked to that faulty ignition switch in cars made by General Motors. The initial calculation was only 13 and including people in the front seat in cars involved in those the front-end crashes.

The new numbers are anyone sitting in a car with the defect. This comes ahead of the January 31st deadline for victims to seek compensation. That change seems right. Why only in the passenger seat to be counted? Now everybody. BERMAN: Alison Kosik, thanks so much.

Breaking overnight, a highway overpass collapses in Ohio. The results were deadly. We will tell you the new information we are learning this morning coming up next.

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BERMAN: Breaking overnight, a deadly bridge collapse shutdown a stretch of I-75 in Cincinnati. The bridge gave out late last night. It is not clear why or what caused it. The Cincinnati Fire Department says the body of a construction worker, who was killed, has just been recovered. A truck driver suffered non-life threatening injuries.

A formal indictment for Christopher Cornell, the man accused of plotting the terror attack at the U.S. capitol. That indictment could come as early as tomorrow.

The 20-year-old Cornell is being held without bond after his arrest last week. Cornell had been on the FBI radar for months. His alleged plot was thwarted with the help of an informant.

Jury selection begins today in the trial of James Holmes. He is the man charged in the 2012 Aurora, Colorado movie theater massacre that left 12 people dead and 58 wounded. Holmes has pleaded not guilty by reason of insanity. The process of seating a jury could be a lengthy one. Prosecutors estimate 9,000 prospective jurors in the suburban Denver County.

This morning, a software executive, his wife and four children unaccounted for after a huge fire destroyed their mansion near Annapolis, Maryland. Neighbors have suggested that Donald Pyle and his family were away from the home at the time. Officials say there is no evidence that the fire was deliberately set.

The day of protests, some violent on the birthday of Dr. Martin Luther King Jr. in Seattle, six arrested and police officer suffered a leg injury as protesters disrupted highway traffic. Some of them chanting black lives matter.

In California, 68 demonstrators were detained by police after snarling traffic for two hours. In New York, hundreds of protesters took part in a dream for justice march in Harlem. Some of the demonstrators chanting racist cops have to go.

Virginia governor Terry McAuliffe is hospitalized this morning after treatment from a horse riding accident last month. The governor was in Africa on vacation with his family when he was thrown from a horse. He broke several ribs.

Doctors expected the injury to heal on its own, but brought him to the hospital on Monday because of an increase in fluid around his lungs. The procedure to drain the fluid was successful. The governor is expected to be released and return to work within the next few days.

Snow is in the forecast for the Great Lakes and the Mississippi Valley. Let's get to meteorologist, Pedram Javaheri for an early look at your weather.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Good morning, John. Let's show you what is happening nationally today, temperatures going to be on the mild to very warm side across the southeast, 67 in Charleston. Pushing close to 70 in New Orleans.

Washington to New York, the cooling trend begins. D.C., it will get colder in the coming days. So far this morning, scattered showers in the northern great lakes here not much in the way of impressive accumulations generally 1 to 2 inches.

As it moves to the northeast, we are watching this for Wednesday afternoon and evening. New York City to Philly, the 95 corridor, we could have snow showers there. Impressive snow accumulation does not look to be the case for the major cities.

Philly at best 2 inches, it could cause disruption for evening travel, 25 inch of snowfall in Mansfield, Ohio. Not much in the way of damage. Long term forecast on the northeast, John, going to be below average temperatures next week while the west warms up.

BERMAN: Thanks, Pedram.

Deflate-gate, controversy around the NFL, did the New England Patriots intentionally deflate the footballs in the AFC championship game against the colts on Sunday. The NFL says it investigating. Why would they have done this?

If you take air out of the ball, it makes it easier to grip. The conditions were lousy on Sunday. As I said, the NFL is investigating to see if the balls were altered. Both Bill Belichick and Tom Brady say they have no idea what is going on here. Tom Brady says the whole thing sounds like a joke.

Happening now, new fighting in Ukraine, Russia accused of sending troops across the border. We are live with the latest next.

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BERMAN: New this morning, it appears the battle for Eastern Ukraine is entering a new phase. The prime minister announcing tanks and rocket systems have been moved into his country. This is following the recent escalation with the fighting of the pro-Russian rebels from Moscow.

Let's go to senior international correspondent, Matthew Chance, is there in with the latest. Russia denies sending troops over the border.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Absolutely. They said there have been allegations in the past and they have been rejected then. They are doing the same this time. Certainly there is an upsurge in fighting, though, John.

Fighting particularly centered around the airport in Donetsk. This is being fiercely fought over both by the Ukrainian government forces and pro-Russian rebels. It is not clear who is in control, a big government offensive to take control of the airport from the rebels.

Rebels say they are fighting back. The fighting extended to other areas surrounding the airport and into Donetsk, which is the main rebel strong hold in Eastern Ukraine. Rebel defense officials saying the area is under attack from shell fire from the government side.

At least 37 times over the course of the past 24 hours, they are reporting four people killed and 20 people injured. There are casualties on the government side as well. There are new concerns now that this phase, which has been ticking away, but relatively dormant may be entering a dangerous new phase.

BERMAN: Matthew Chance for us in Moscow. You get the sense that both sides figure the situation is growing worse by the day and still no negotiations underway as of right now. Matthew Chance, thanks so much.

Pope Francis makes it official his trip to the United States this fall will include stops in New York and Washington, D.C. along with a previously announced visit to Philadelphia for the World Meeting of Families.

Vatican organizers say the pope's itinerary is still worked out. It could include appearances at the White House, Ground Zero, and address to the United Nations General Assembly. This will be his first trip to the United States as pope.

The number of deaths tied to faulty GM ignition switches is rising. That as the deadline to file claims is looming. Alison Kosik will give us as early start on our money next.

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BERMAN: It's time now for an EARLY START on your money. Alison Kosik joins us for that.

KOSIK: You know, everybody has been playing the guessing game. When is the fed raising interest rates and it looks like the Federal Reserve will stay the course, keeping to the plan to keep short-term interest rates near zero. They will reevaluate in June. The Fed meets next week. No big moves are set to be reviewed until summer. Now long term rates could actually wind up going down over new investor worries about weak, global growth, and falling oil prices.

The death toll linked to the fault ignition switch in GM cars taking a sharp increase is now up to 49 deaths. The previous calculation was 13, but that only wind up taking into account people who sat in the front seats of cars and those front-end crashes. Now the new numbers reflecting anybody in the car involved in the crash related to the defect. Anybody sitting anywhere in the car and the change could wind up meaning more payouts for people impacted by the issue. There is a January 31st deadline for victims to seek compensation.

The wealthiest 1 percent is expected to own more than anyone by next year. It estimates the richest 1 percent will have as much wealth as the other 99 percent of us combined by 2016. That is the biggest inequality gap seen in years.

This report comes as the president is expected to reveal proposals looking to close tax breaks on the wealthy in the State of the Union address which is tonight. The guess is the proposals have a slim chance of passing Congress.

BERMAN: I think slim is generous. They have no chance of passing Congress, but I think meant to begin a political discussion right now and could continue to 2016.

KOSIK: It is a hotbed issue.

BERMAN: Alison Kosik, thanks so much for being with us. I really appreciate it.

New terror threat from ISIS breaking overnight, "NEW DAY" picks that up starting right now.