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Early Start with John Berman and Zoraida Sambolin

State Department Closes U.S. Embassy in Yemen; Authorizing the War on ISIS; UAE Joins Airstrikes Against ISIS;U.S. Planning "Cyber Intelligence Center"; Brian Williams Suspended; Jon Stewart Leaving "The Daily Show"; Agreement on Ceasefire in Eastern Ukraine?; Gas Prices are Rising

Aired February 11, 2015 - 04:30   ET

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

JOHN BERMAN, CNN ANCHOR: New information in the tragic death of American ISIS hostage Kayla Mueller, the failed U.S. mission that attempted to save her. As President Obama and other Middle Eastern allies step up attacks, we are learning about an alarming number of new recruits heading to the ISIS battlefields.

Welcome back to EARLY START, everyone. I'm John Berman. Christine Romans is off today. About 30 minutes past the hour.

We do begin with breaking news overnight: the United States closing down its embassy in Yemen. The State Department has evacuated dozens of diplomatic officials from its compound in Sana'a, while urging all Americans to leave that country immediately.

There are growing concerns now about security. There was a power vacuum in there. The president, other leaders in that country have resigned. There is new leadership there and just simply a situation of chaos.

This is the day that President Obama could formally ask Congress to officially authorize the war on ISIS, even though the mission has been going on for months. His request will limit the type of ground forces that the U.S. could deploy.

And it comes on the heels of the shattering news that American hostage Kayla Mueller is dead. The Pentagon revealed that U.S. commandos tried unsuccessfully to rescue her last summer. President Obama calls her death heartbreaking. He is defending his decision to reject ransom demands of ISIS for her release.

Let's get more now from senior White House correspondent Jim Acosta.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John, in that interview with "BuzzFeed", the president said speaking with the parents of these American hostages is as tough as anything he does, but he is standing by his administration's policy of not paying for the release of hostages. The concern -- and we've heard this repeatedly from inside the White House -- is they don't want to provide an incentive for ISIS or other terrorist groups to take more hostages. The other big reason we've gotten briefings on this, is that the payments made by for other governments for their hostages helps fund ISIS operations.

But the president essentially acknowledged to "BuzzFeed" that this rescue operation that he authorized last summer was aimed at freeing Kayla Mueller and the other hostages being held inside of Syria.

Here is more of what the president had to say.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The one thing that we have held to is a policy of not paying ransoms with an organization like ISIL. And the reason is once we start doing that, not only are we financing their slaughter of innocent people and strengthening their organization, but we're actually making Americans even greater targets for future kidnappings.

So, you know, it's as tough as anything that I do, having the conversation with parents who understandably want, by any means necessary, for their children to be safe. And we will do everything we can short of providing an incentive for future Americans to be caught.

ACOSTA: As for the war on is, we're hearing from sources at the White House will unveil this new authorization for the war on ISIS as soon as tomorrow. It will get rid of the 2002 authorization for the war on Iraq and replace it with a measure that will be ISIS specific. Sources tell us that the authorization will have no geographic boundaries and will only last three years.

But on this key question of whether it will allow U.S. boots on the ground in combat, that is where it gets interesting. According to this latest proposal seen by lawmakers, the authorization will prohibit something called "enduring offensive combat operations". That would indeed, John, provide some latitude for the president to commit ground forces inside of Iraq to take on ISIS -- John.

(END VIDEOTAPE)

BERMAN: Jim Acosta, thanks so much.

And during offensive operations, pay attention to those words. That will be the crux of the debate in Congress.

U.S. intelligence officials say that ISIS is plotting to pull off more kidnappings in countries such as Jordan and Lebanon. That as the Pentagon reveals that ISIS is holding at least one more American hostage. They have not revealed an identity. In Arizona, friends and families trying to cope with the death of aid worker Kayla Mueller. She is being remembered as a young woman who took extraordinary measures to serve others.

(BEGIN VIDEO CLIP)

ERYN STREET, KAYLA MUELLER'S FRIEND: I'm not yet sure how to give in a world without Kayla, but I do know that we're all living in a better world because of her. So I'm going to end on a quote that reminds me of her. "Peace is not something you wish for. It's something you make. It's something you do. It's something you are. And it's something you giveaway."

(END VIDEO CLIP)

BERMAN: Remarkable young woman.

President Obama calls Kayla a great spirit and says the more people learn about her, the more they appreciate what she stood for. Very true.

A new round of airstrikes overnight targeting ISIS positions in Syria. Not from the U.S. but from Jordan and the United Arab Emirates. This marks the first time the UAE has engaged in combat operations against ISIS since late last year. They were concerned about their pilots' safety. A top counterterrorism official warns ISIS is recruiting Westerners now at an unprecedented rate. The estimate now is at some 20,000 fighters from 90 nations have joined ISIS on the battlefield including about 150 Americans.

(BEGIN VIDEO CLIP)

ADMIRAL JOHN KIRBY, PENTAGON PRESS SECRETARY: This is one of the real threats about this group is their foreign fighters. These are folks that come in with other passports, other visas and then can perhaps export some of this terror back to their home countries, which is one other reason why we have to take the threat so seriously.

(END VIDEO CLIP)

BERMAN: I want to bring in Jomana Karadsheh live in Amman, Jordan, right now.

Jomana, it's interesting, even after all these airstrikes, the flow of fighters to ISIS continues.

JOMANA KARADSHEH, CNN CORRESPONDENT: And this is the major concern, that this organization is still able to recruit, that it's still replenishing its leadership and its ranks. And this is a concern not only for the international community but also here in Jordan and in this region. They are concerned about this growing risk from ISIS and extremist groups. That's why they say they are more determined than ever now to continue this fight.

As you mentioned, the United Arab Emirates resuming those airstrikes, its F-16 fighter jets carrying out strikes on targets in Syria, and this is carried out by a squadron of F-16s that it based here in Jordan. This move happened over the weekend. The UAE saying that this is a move in solidarity with Jordan that has just increased and upped its military campaign against ISIS since the killing of its pilot last week.

As we have seen Jordan really carrying out more airstrikes over the past week. Now, it does seem that the brutal killing of the Jordanian pilot has galvanized the coalition, especially the Arab nations that are part of the coalition like Jordan and the UAE. There was this sense before, John, that some saying here that this is not our war -- something that seems to be changing at least now in reaction to the killing of that pilot. People saying that this is our war and that they need to be at the forefront of this fight against ISIS.

But Jordan is a small country. It has a capable military, but it says it needs more support from countries like the UAE, other Gulf nations and Arab nations and also from the United States and other countries supporting it financially and also militarily -- John.

BERMAN: They need money, they need troops, they need help. Jomana Karadsheh in Amman, thanks so much.

The Obama administration is planning to create a "Cyber Intelligence Center" to deal with digital attacks such as the one that crippled Sony Pictures. It's going to be built sort of in the model of the National Counterterrorism Center which was created after September 11th. Homeland Security Officials say the government response to hackers falls well short of the response to more conventional terrorist attacks. And that capability needs to be upgraded quickly.

The House is expected to approve construction of the Keystone oil pipeline today. The measure has already passed the Senate. This sets up a showdown with President Obama. The president has promised to veto this bill. He says he wants the State Department to finish its review of the project.

Twenty-eight House Democrats joined Republicans to back the pipeline, but they do not appear to have enough support to override the imminent presidential veto.

The president is set to announce he is bringing back nearly all of the 1,300 U.S. troops that were sent to West Africa to fight the Ebola outbreak. They will be home by April 30th. The new number of Ebola cases has dropped to about 150 per week. That figure was more than 1,000 per week last fall. The virus has claimed nearly 9,000 lives.

Time now for an early start on your money. CNN Money correspondent Cristina Alesci is here with that.

CRISTINA ALESCI, CNN MONEY CORRESPONDENT: Well, stock futures are barely moving, but don't be fooled, because there's a lot going on on Wall Street. First off, oil prices are once again slipping. U.S. crude oil fell 5 percent yesterday. And we could see big developments in the standoff between Greece and its lenders.

European finance ministers are meeting later today to discuss Greece's bailout. Now, keep in mind that no one's really expecting a deal, but investors will be looking for any signs of progress.

So, despite these concerns, keep in mind stocks managed to climb yesterday. The Dow rose 140 points, thanks in part to better than expected earnings from Coca-Cola. And we'll get a personal look at other major players today, including Pepsi before the bell.

John, this is a company that I am paying very close attention to. They had a great year last year. The stock was up about 20 percent versus the market 13 percent. And it's all because even though Americans are moving away from perhaps sugary drinks, they're still eating chips.

BERMAN: Oh.

ALESCI: So, Pepsi has a more diversified brand than, let's say, Coca- Cola. They've got chips like Doritos and Lay's, and Americans seem to be buying them.

BERMAN: We will always find a way to sin one way or the other.

ALESCI: Exactly.

BERMAN: Cristina Alesci, thanks so much.

A huge shake-up in television news. NBC News anchor Brian Williams suspended. That happening, and he's not really in the news. Jon Stewart announced he's ready to move on from "The Daily Show." Some blockbuster moves. We'll tell you what we learned overnight, next.

(COMMERCIAL BREAK)

BERMAN: Big news overnight. NBC News anchor Brian Williams has been suspended for six months without pay. The top-rated network anchor taken off the air for embellishing his role in a helicopter attack in Iraq. NBC News is also reviewing other stories that Williams reported on.

This is a statement released by NBC Universal's chief executive, Steve Burke. It says, "By his actions, Brian has jeopardized the trust millions of Americans place in NBC News. His actions are inexcusable, and this suspension is severe and appropriate."

The network has announced that Lester Holt will fill in for Williams while he serves his suspension.

Talk about another blockbuster move in the media: Jon Stewart says he is leaving "The Daily Show" after 15 years as host. Stewart delivered that news during a taping on Tuesday.

(BEGIN VIDEO CLIP)

JON STEWART, HOST OF "THE DAILY SHOW": It's been the honor of my professional life. And I thank you for watching it, for hate watching it, whatever reason you were tuning in for, it -- you get in this business with the idea that maybe you have a point of view and something to express. And to receive feedback from that is the greatest feeling you can ask for. And I thank you.

(END VDIEO CLIP)

BERMAN: Stewart plans to step down sometime later this year. The announcement comes just months after Stephen Colbert left Comedy Central. He will be the new host of "The Late Night" or "The Late Show", I should say, on CBS. He takes over for David Letterman. The American sniper murder trial gets underway in just a few hours in

Stephenville, Texas. Former marine Eddie Lee Routh is charged with killing Navy SEAL Chris Kyle and his friend Chad Littlefield at a Texas gun range in 2013. Kyle, of course, is the subject of the film "American Sniper." Defense lawyers claim to argue that Routh suffered from post-traumatic stress and was not in his right at the time of the killings.

The Aaron Hernandez trial resumes today. New testimony after a brief weather delay. The judge now has granted his fiancee, Shayanna Jenkins, immunity. She will now be able to testify without implicating herself. Prosecutors believe that Jenkins followed instructions from Hernandez to dispose of the gun allegedly used in the shooting death of Odin Lloyd back in 2013.

The Bobbi Kristina Brown case is now officially a criminal investigation. Police still trying to determine how the daughter of the late Whitney Houston became unresponsive in a bathtub full of water. They have reportedly questioned her about -- her boyfriend now about bruises that were found on her chest. Bobbi Kristina remains in a medically induced coma at Emory University Hospital in Atlanta.

Breaking overnight: a 46-year-old man in North Carolina has been charged with three counts of first-degree murder for allegedly shooting three people in the head. Some people call this execution style. It happened last night at a condo complex in Chapel Hill. Police say Craig Steven Hicks turned himself in shortly after the attack. It's not clear how he may be connected to the victims or what the motive might have been in the attack. A lot of people online talking about the identity of the victims this morning.

The city of Boston still buried under mountains of snow and two more storms. Two more headed your way.

Let's get straight to meteorologist Pedram Javaheri for an early look at the weather.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Good morning to you, John.

Yes, the next seven days look like another couple storm systems. Seven inches, one model, another one puts ten inches on the ground. Notice, we've had 78 already come down this season. This would propel us into the top three as far as accumulations if this ten inches verifies over the next week and a half. So, we're watching that carefully.

And here's the culprit for the first weathermaker across the Great Lakes. It's generally three to four inches over northern portions of Michigan. Some isolated pockets of higher amounts in the lake-effect favored regions.

But the storm system eventually pushes in offshore. Should be far enough off the coast Thursday night into Friday morning where the snowfall amounts will be minimized compared to what we initially receive in the model indications. Better agreement here, both storms -- both indications of the models taking the storm offshore, farther off shore.

So, it looks like accumulations perhaps three to four inches around Boston by Friday night. And the secondary feature comes in with similar amounts come Sunday afternoon. So, perhaps another three to four inches on top of that on Sunday.

Needless to say, there's not that much snow compared to what has already come down. But enough to cause a mess after what they've dealt with in the last four weeks, John.

BERMAN: It's all unwanted, any amount. Pedram Javaheri, thanks so much.

Happening now: trying to hammer out a peace plan for Ukraine. World leaders trying to negotiate a deal as the fighting intensifies. We're live with the latest developments, next.

(COMMERCIAL BREAK)

BERMAN: All right. Developing overnight: the negotiations to try to find peace in the conflict in Eastern Ukraine. Negotiators have been working throughout the night to try to hammer out some kind of cease- fire. There was word of a possible breakthrough with the leaders of Russia, Ukraine, Germany and France due to arrive and meet in that country in just a few hours. But now, there are questions about that breakthrough.

Nic Robertson joins us live from Minsk with the latest.

Nic, what is the status? Did they make the progress that we hoped they were making?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It seems that some progress is being made. Precisely what it is -- I mean, the broad parameters of what they're trying to do here is -- and everyone has agreed to the territorial integrity and sovereignty of the Ukraine being paramount. But what they're talking about is a cease-fire that would pull the heavy weapons back from the front line that would create a buffer zone between the two forces on the battlefield right now.

But going beyond that in the future -- and this is where it gets sticky and difficult -- is the nature of the political relationship and that political dialogue between the authorities in Ukraine and Kiev and the vast majority of Ukraine and those Russian-backed separatists in the Southeast of Ukraine. What kind of future would they have? What kind of autonomy would they have? Those are the tough points. The French foreign minister, the German foreign minister, have both said that many questions remain at this time. It's a very important moment, they say.

The indications are that those leaders, Francois Hollande from France, Angela Merkel from Germany, Petro Poroshenko from Ukraine and the Russian president, Vladimir Putin, could be landing here in Minsk in about five hours' time. If they do, everyone at the moment is expecting talks that could go long, long into the night here, John. BERMAN: We don't even know for sure if they will arrive there.

Developments there so important. We're lucky to have you there, Nic Robertson. Thanks so much.

Fifty-four minutes after the hour.

Oil is cheap, but your gas prices, they're rising. Why? We'll get an early start on your money, next.

(COMMERCIAL BREAK)

BERMAN: Let's get an early start on your money. CNN Money correspondent Cristina Alesci is here with that.

Good morning.

ALESCI: Good morning.

Now, a very exciting morning for stocks, they are barely moving so far. But don't be fooled. There's a lot to look for on Wall Street today. We could see big developments in the standoff between Greece and its lenders. European finance ministers are meeting in Brussels later today to discuss Greece's bailout.

Keep in mind: no one's really expecting a deal. But investors will be looking for any signs of progress. Plus more results from major companies including Pepsi's earnings before the bell.

Oil is cheap, but gas prices are rising. The national average for a gallon is $2.21 today. Now, that's down more than $1 from this time last year, but prices have been climbing for 16 days in a row. And experts say that trend will likely continue heading into spring. More people driving, of course. That makes sense.

And more job cuts for oil companies. Halliburton says it will slash up to 6,400 jobs or about 8 percent of its work force. Halliburton is just the latest to announce layoffs and spending cuts in the sector as U.S. crude oil prices are around $50 a barrel. Remember, oil averaged about $93 a barrel last year. The plunge is in thanks to booming supplies, especially here in the United States, as demand weakens around the world.

Now, Halliburton happens to do oil field services. Those are the first jobs to go when oil prices tank. The higher paying jobs, those engineers, they're going to stay on because they're hard to come by. So the companies are reluctant to let them go.

BERMAN: Interesting. All right. Cristina Alesci, a lot of news in the oil sector. It affects all of us.

ALESCI: Indeed.

BERMAN: Thanks so much. Appreciate it.

EARLY START continues right now.