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Early Start with John Berman and Zoraida Sambolin

World Leaders Push for Peace in Ukraine; Snowstorm Slams Northeast; Grammys: Sam Smith Wins Big; Coalition Airstrikes Pound ISIS Targets; Legendary UNC Coach Dean Smith Passes Away

Aired February 09, 2015 - 05:00   ET

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

JOHN BERMAN, CNN ANCHOR: Happening now: U.S. and world leaders mapping out a peace plan for Ukraine. The violence escalates between the country's military and pro-Russian rebels. This morning, how President Obama plans to get involved and the price that Russia may have to pay for its role in the fight. We have team coverage breaking down the story ahead.

Bracing for an impact. The Northeast smacked with a new monster snowstorm. Flights canceled. Schools closed. People warned to stay off the road. There is nowhere to put the snow. We are live in Boston tracking out bad this is all going to get.

Sam Smith conquers the Grammys. Big wins for the soul singer on music's biggest night. We will break down the surprising moments. That's all ahead.

Good morning, everyone. Welcome to EARLY START. I'm John Berman. It's Monday, February 9th, 5:00 a.m. in the East. Christine Romans is off this morning.

Up first, the diplomatic struggle to save Ukraine. German's chancellor Angela Merkel meets face-to-face with President Obama in Washington this morning. The German chancellor favors sanctions against Russia if President Vladimir Putin does not agree to a plan to end the fighting in Eastern Ukraine by Wednesday. President Obama is facing mounting pressure to arm Ukraine, something the German chancellor strongly opposes.

Our Frederik Pleitgen is live in Kiev this morning.

Good morning, Fred.

FREDERIK PLEITGEN, CNN CORRESPONDENT: Yes, good morning, John.

And you're absolutely. It is the difference of opinion, if you will, with many in the U.S. and many in Europe about whether or not to arm Ukraine. That certainly are going to be taking center stage both at the Obama and Merkel meeting, but, of course, also right here in Kiev, on the ground.

The government here certainly seems to have a sort of dual strategy if you will. On the hand, they want cease-fire talks to continue and obviously, they want those ceasefire talks to be successful. Of course, in two days, in the city of Minsk, which is the capital of Belarus, Ukraine and Russia are going to be meeting to decide all this. The European countries, Germany and France, are also going to be a part of that meeting to try to get some cease-fire going in the east of the country, because, quite frankly, the fighting there continues to escalate.

Just this morning, there was a gigantic blast in the city of Donetsk when apparently the Ukrainian military hit an arms depot of the pro- Russian separatists. So, certainly, the people there are in a very dire situation.

So, on the one hand, the Ukrainian government wants these cease-fire talks, it wants an agreement to be put in place. But on the other hand, they're saying they've had agreements in the past. Remember there is already a Minsk document, which is in place. However, it doesn't mean anything on the battlefield, because the fighting continues.

At the same time, the government here in Ukraine wants the U.S. to supply it with weapons. And it's anti-tank weapons, but also everything that has to do with electronic warfare, things to help the Ukrainian military, for instance, pinpoint where mortar fire is coming from, or where artillery fires are coming from. They say the big deficit they have on the battle field is these sophisticated weapons that will help them pinpoint where the enemy is and where those movements are.

But again, there is that divide, if you will, the Atlantic sort of divide, where on the one hand, you have the European source who are saying we can't even talk about giving arms to the Ukrainian military, because that could put the U.S. off, whereas in the U.S., of course, you know, we have that debate going on about whether or not it might be a good idea to arm the Ukrainians, John.

BERMAN: The debate unfolding at these negotiations continue. Frederik Pleitgen in Kiev for us this morning.

European leaders, what they want is a new round of sanctions against Russia. They target nine unidentified organizations and nearly 20 Russian or Ukrainian individuals. The highest profile target is Russia's deputy defense minister.

I want to go live to Moscow and bring in senior international correspondent Matthew Chance.

Good morning, Matthew.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, John.

That's right. Europeans stressing the need for a diplomatic solution to the end of the conflict in Ukraine. And, of course, we also have to stress that the moment the United States does not provide lethal aid to -- the U.S. administration does not provide lethal aid to the Ukrainians. So, it's just a debate that's going on here in the U.S.

But, yes, you are right. The diplomatic efforts in full swing now in preparation for a meeting that's going to be held potentially in Minsk, the capital of Belarus, the leaders of Ukraine and Russia, along with France and Germany, making preparations to head there if certain issues, according to the Russian president are sorted out first. In Berlin, there's a meeting of the European Union foreign ministers to vote on a list of expanded sanctions against Russia over its alleged role in Ukraine. A number of individuals from Russia, a number of Ukraine as well being sanctioned and having restrictions placed on them by the European Union as a result of that.

You mentioned there were companies that are also coming under restriction. But, again, you know, that's the preference. Increase the pressure on Russia to put its troops out of Ukraine. Of course, the Kremlin says it doesn't have troops there, but nevertheless. And to basically see action on the ground. That's what the Europeans want. Very reluctant to see the situation escalate to a wider conflict, very reluctant to see weapons put in the hands of the Ukraine government.

BERMAN: All right. Matthew Chance for us in Moscow, thanks so much, Matthew.

Secretary of State John Kerry insists the West has the unified front in its effort to stop the conflict in Ukraine, but there is a lot of disagreement over the issue we've been talking, whether or not to arm the Ukrainian military in their struggle against the Russian separatists. That makes diplomacy difficult.

Let's get more now from Erin McPike in Washington.

(BEGIN VIDEOTAPE)

ERIN MCPIKE, CNN CORRESPONDENT: The ongoing crisis between Ukraine and Russia is certain to top the agenda of the meeting today between President Obama and German Chancellor Angela Merkel. And we'll hear from the two of them later today in a press conference after that meeting. That's all happening as the debate is growing between American and European leaders about whether providing lethal aid to Ukraine could be counterproductive that it would escalate the situation with Russia, rather than deescalate it.

Now, that debate will be a key point of preliminary diplomatic talks in Berlin tomorrow and again at a proposed peace summit in Belarus on Wednesday.

Remember, the Obama administration is still hoping for a political solution to this crisis, but they are leaving an opening. Secretary of State John Kerry was in Europe for a security conference over the weekend, and on NBC's "Meet the Press" Sunday, he left room for the U.S. to alter its strategy if Russian President Vladimir Putin doesn't stand down. Listen here.

JOHN KERRY, SECRETARY OF THE STATE: The solution is a political diplomatic one, but President Putin has got to make the decision to take an off-ramp. And we have to make it clear to him that we are absolutely committed to the sovereignty and integrity of Ukraine, no matter what. MCPIKE: Kerry and Vice President Biden continued to stress in Europe

this weekend that Ukraine does have the right to defend itself, but they're obviously trying to stop short of creating conditions for an all-out war. Although as some Republicans are now calling on the administration to provide that lethal aid, it appears some senior officials are beginning to open the door to some new options.

(END VIDEOTAPE)

BERMAN: All right. Thanks to Erin McPike.

DHS Secretary Jeh Johnson is warning that now is not the time for Congress to play politics with funding for Homeland Security. Some Republicans are trying to reverse the president's executive actions on immigration in any spending bill for Homeland Security, any funding bill for homeland security. DHS money dries up in less than three weeks. The secretary says if this happens, 30,000 DHS workers will have to be furloughed and U.S. security will be sacrificed.

(BEGIN VIDEO CLIP)

JEH JOHNSON, HOMELAND SECURITY SECRETARY: Just say, well, we'll just make them come to work without pay, first of all, is a real challenge for working men and women of my department. Second, it means furloughing at least 30,000 of our department and cutting back very significantly on our operations, our operations to pursue homeland security. So, this is not a situation to make light of. In these challenging times, we need a fully-funded Department of Homeland Security.

(END VIDEO CLIP)

BERMAN: Johnson is actually calling for increase in funding over last year's level. He says he needs money for extra Secret Service agents for the 2016 elections and more equipment for state and local police agencies.

Let's talk about the weather. There is a lot of it -- Boston and a whole big chunk of the Northeast in the grips of another snowstorm. Snow already falling hard in some parts of New England with some areas facing up to two more feet of snow today.

Boston is still digging out from the 55 inches of snow they already have. The mayor says there's no place to put it all.

Let's get a report now from Sara Ganim live in Boston, in the snow.

Good morning, Sara.

SARA GANIM, CNN CORRESPONDENT: Good morning, John.

Look around me, these piles of snow, John, these are the problem. The mayor has said this season already has been unprecedented. The amount of snow that's fallen in such a short amount of time, it's caused an issue for removal. They can't get this snow off the streets fast enough. This is what residents are complaining about, and I want to show you why, because it's really hard to get around.

Take a look down the sidewalk. Look how narrow it is. Look at these streets. How narrow they are. It's hard for pedestrians to get around, which hurts business. It's hard for cars to get around which causes a safety issue.

These giant piles cause a visibility problem when you were on the main thoroughfares, because it's not just the side streets that looked like this, there are piles like this on the highways. They are making the streets more narrow and harder to pass through.

Now, the mayor has addressed this. He says, look, the budget for snow removal is gone. There has been so much snow that they shot their budget already. He is planning on taking steps to address this, but in the meantime, he says there are private contractors who are not helping the issue.

Take a listen to what he said about that.

(BEGIN VIDEO CLIP)

MARTY WALSH, BOSTON MAYOR: We plowed every single street in the city of Boston on every snowstorm. Some of that, we can't help if private contractors or people throw snow on the sidewalk, on the streets. So, we're asking you to keep an eye out for that.

(END VIDEO CLIP)

GANIM: Now, the mayor said he is actually working with the state of New York to try to bring in these snow melting machines. The city of Boston has one of them. They are trying to get a couple more so they can start to melt the snow because, John, it is still early February. There is still potential for a lot more snow, as example by today. Already since yesterday, about 7 inches of fresh snow has fallen on top of the 55 that they already had on the ground.

By tomorrow morning, we could see up to 2 feet of fresh snow. This is a big problem. This is what residents are complaining about. It's not winter. It's not the snow. It's the amount that has fallen in a short period of time.

And just one more thing, you know, the city is concerned of safety -- they're concerned for people's safety for a couple of reasons. One of them is fire hydrants. I just want to show you this one. This one is clear.

The city has launched a Twitter campaign, though, asking residents to dig out fire hydrants on the side streets. There are many of them. We have seen cars that are completely buried and imagine how hard it would be to find a fire hydrant when you can't even tell the snow pile is snow or garbage or a car -- John.

BERMAN: It's just nuts, Sara. I was up there on Saturday. And you can't see over the snow banks when you are trying to take a turn in a car. You don't know what's there. You get trapped on the sidewalk because there is no way to get up the sidewalk because the snow banks are four 4 feet high. And now, they are getting up to two more feet.

Sara Ganim for us braving the elements in Boston -- thanks so much, Sara. Appreciate it.

All right. So, how bad is it going to get? Let's get a look at the forecast right now. Karen Maginnis has that.

KAREN MAGINNIS, AMS METEOROLOGIST: John, estimates of as many as 43 million people all across the Northeast and New England corridor are going to be impacted by this long duration snow storm. Look at Boston, already 63 inches of snowfall. This is the third storm that we have seen in as many weeks.

Now, we haven't met the top five snowfall totals, but very well, this system, in addition to what we will see possibly with the next system by the end of the week, we will be edging closer to that top five.

It looks like for New York, extending down towards Philadelphia and Baltimore, we could see an icy mixture. That has its own set of problems. They are trying to figure out where to put the snow in Boston. Eastern Massachusetts, that's going to be the area that will be hit the hardest. But look for some freezing rain or sleet or ice in Philadelphia, extending through New York, also into Long Island and right around the cape of Massachusetts.

And then it looks like that big chill towards the end of the workweek. We could see record-setting temperatures. But we'll keep you updated on that.

John, back to you.

BERMAN: Record setting temperatures in a low category.

All right. Time for an early start on your money. Cristina Alesci here with that.

Good morning.

CRISTINA ALESCI, CNN BUSINESS CORRESPONDENT: Good morning. I wish I had some good news for you.

U.S. stocks are moving lower this morning. That is because there are a few things weighing on the market right now, especially those negotiations over Greece's bailout. But that aside, stocks are finally seem to be on track this year. Last week, the Dow claimed almost 4 percent. That made up for some big losses in January.

So, we're actually slightly up for the year. There you go. That's some good news.

Breaking overnight, a new report says mega bank HSBC used its private Swiss arm to hide accounts and help customers avoid taxes. That unit had more than $100 billion in assets. They were already some very big high profile clients, including people close to former Egyptian President Hosni Mubarak, and current Syrian President Bashar al-Assad. In its defense, HSBC says it reformed the business in recent years and greatly reduced the number of accounts. John, this is just an incredible story. Remember, there were several Swiss banks facing criminal prosecution because not only did they help people avoid taxes, they also helped money launderers.

So, lots to be had on that front, and we could be looking forward to more criminal prosecutions.

BERMAN: HSBC's had its own problems over the last few years. All right. Cristina, thanks so much.

The music industry's biggest night, it was big for singer/songwriter Sam Smith. He took home four Grammys, including two of the biggest prizes, song of the year, and record of the year, which are very different things I'm told for his song "Stay With Me."

Album of the year went to Beck. Beck won for best rock album. Beyonce won for best R&B for the song, "Drunk in Love." Joan Rivers won in the best spoken word category. Her daughter Melissa was there to accept on the behalf of the late comedian.

As always, a lot of live performances. That's Madonna singing her new song living for love.

The unmistakable sound and shaking of Lady Gaga there. That's Tony Bennett singing Lady Gaga sort of moving. They have been on tour together.

That's Rihanna and Kanye West and some guy named Paul McCartney in the background there playing the bass of the guitar. They did their song "For Five Seconds".

Happening now, new air strikes pounding ISIS as the family of the American woman taken hostage waits to hear if their daughter is alive. We are live with the latest this morning.

(COMMERCIAL BREAK)

ROMANS: Coalition air strikes are pounding ISIS targets in Syria and Iraq. At least a dozen attacks were launched in Mosul, that is a city in northern Iraq that has occupied by ISIS. Kurdish forces have been trying to surround Mosul to cut off ISIS supply lines from Syria. This as the parents of American hostage Kayla Mueller plead with ISIS to contact them. They believe their daughter is still alive despite claims by ISIS that a Jordanian airstrike killed her last week.

Jomana Karadsheh is tracking the latest for us live in Amman this morning.

Good morning, Jomana.

JOMANA KARADSHEH, CNN CORRESPONDENT: Good morning, John.

And we have been asking Jordanian officials about these ISIS allegations about Kayla Mueller. And they say they have dismissed this as PR stunts and lies by ISIS. And we also asked a senior military official about this again this yesterday. He says there is absolutely no proof to support these allegations.

Now, as you mentioned, the Jordan military continues to pound ISIS targets. Yesterday, we heard from the Jordanian air force in a rare briefing where they outlined Jordan's contribution so far in coalition air strikes, saying that since Jordan joined, they have carried out about 20 percent of the 5,500 air sorties that have flown by the international coalition. They also gave us an overview of the ramped up air strikes that have been carried out by the Jordanians by ISIS targets over recent days since the killing of the Jordanian pilot. They say this it is an operation to avenge his death.

And they say that between Thursday and Saturday, Jordanian air force jets struck 56 ISIS targets. And this is a combination of different targets, like training camps, also logistics and supplies. And on Saturday, they pounded 19 targets they say where ISIS fighters are based. Where they live and sleep.

The Jordanians are saying this is just the beginning of their operations against ISIS and that they are determined to continue not only to degrade ISIS, they say, but to destroy the groups. In the word of the chief of Jordan's air force saying, quote, they will continue and they are determined to continue to wipe ISIS off the face of the earth, John.

BERMAN: The battle continues -- Jomana Karadsheh for us in Amman, thanks so much, Jomana.

He spent 35 years behind the bench, won two national titles, graduated more than 90 percent of his players. Now, his most famous player, Michael Jordan, is weighing in on the passing of Dean Smith. Mike Galanos has the details in the "Bleacher Report", next.

(COMMERCIAL BREAK)

BERMAN: University of North Carolina basketball coach Dean Smith passed away at the age of 83.

Mike Galanos has more on the legacy of one of the greatest coaches of any sport of all time -- Mike.

MIKE GALANOS, CNN SPORTS CORRESPONDENT: Hey, good morning, John.

Let's go to some of the accomplishments, then we'll get to more of the impact this man had on those closest to him, coached for program for 46 years, 1961 to '97, under his leadership, the Tar Heel -- 11 final four appearances, two national championships, including one in '82 when Smith drew up the play for then-freshman Michael Jordan.

When he retired, he was the winningest coach in division 1 history. He also fought for integration. In 1967, he gave a scholarship to a black athlete Charles Scott. That was first at UNC. Smith also awarded the Presidential Medal of Freedom in 2013.

But now to the impact, current UNC Coach Roy Williams, who coached under Smith, said he cared a lot more than just wins and losses.

(BEGIN VIDEO CLIP)

ROY WILLIAMS, NORTH CAROLINA HEAD COACH: I think Coach Smith was the best that has ever been on the court, getting people to make sacrifices towards a common goal, truly coaching to make people better and help them reach their own individual dreams. But at the same time, he was better off the court. He cared more about people than wins and losses or records.

(END VIDEO CLIP)

GALANOS: That's the measure of a man. How about the most famous guy he ever coached?

Michael Jordan released a statement, in part, "Other than my parents, no one had a bigger influence in my life than Coach Smith. He was more than a coach. He was my mentor, my teacher, my second father."

And other former Tar Heel great, NBA champ James Worthy tweeted this, "There are so many things I could say about Coach Smith. But simply put, he is the greatest man I have ever known."

John, I know you are a big sports guy. The greatest coaches, it goes so much more beyond wins or losses, whether it's Dean Smith, a Vince Lombardi, a John Wooten, they make the guys they coached men, and that says it all.

BERMAN: No, it's the impact they have. You know, think of all the assistant coaches that have gone on to be great head coaches. Think of all the players to have gone on to be stars, and just good people in general. So, the impact there is enormous.

Mike, thanks so much. Appreciate it.

GALANOS: Yes.

BERMAN: Happening now, U.S. and world leaders pushing for peace in Ukraine trying to end the deadly war there that has killed thousands. What is being done this morning and why Russia might not like it.

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