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Early Start with John Berman and Zoraida Sambolin

Deadline Day for Iran Deal: Russian Foreign Minister Rejoins Talks; Boehner, House Republicans to Visit Israel; Investigation into Germanwings Copilot Continues; Business Leaders Criticize Indiana Law; Jay-Z's New Music Streaming Service. Aired 5:30-6a ET

Aired March 31, 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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JOHN BERMAN, CNN ANCHOR: Deadline day to reach a nuclear deal with Iran , but with just hours of negotiating left, what tricky issues stand in the way? We have new developments over just the last hour. I'll tell you what they are, coming up.

CHRISTINE ROMANS, CNN ANCHOR: A history of suicidal tendencies. Disturbing new information about the pilot who flew himself and 149 others into a French mountain side as investigators search for the plane's missing black box. Live team coverage ahead.

BERMAN: Backlash and boycotts. Indiana hit hard by critics of this religious freedom law, branded as legalized discrimination.

[05:30:02] This morning, there is new outrage as there are some promises to fix the law, and a new defense from the state's governor.

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

ROMANS: I'm Christine Romans. It's 30 minutes past the hour this Tuesday morning. Happening right now, negotiations in Switzerland working furiously to reach a deal to curb Iran's nuclear program. The deadline to reach the outline of an agreement is today, but with this self-imposed zero hour fast approaching, stumbling blocks remain.

Now, breaking in the last few minutes, Russian Foreign Minister Sergei Lavrov announcing he is returning to the talks in Switzerland. That is a sign negotiators may be closing in on a deal.

Global affairs correspondent Elise Labott is at those talks for us in Switzerland.

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: John, Christine, negotiations have been happening throughout the night. They met this morning with Iran. And now the Russian Foreign Minister who left yesterday is on his way back. That could be signs that negotiators are close to a deal.

Secretary of State John Kerry told me yesterday that there was some light, what he said, in the negotiations yesterday, but he said there were still what he called tricky issues to resolve. Now we're talking about those key sticking points we've been talking about for those last few days. Iran wants to continue to do advanced nuclear technology in the end years of the deal. The international community wants the restrictions through the entire duration of the deal, and we're talking about 15 years. Iran also wants to get those U.N. sanctions lifted right away. International community insistent that those sanctions be lifted as Iran shows its compliance with the deal. And they also want the flexibility to be able to reimpose them, what they call a snap-back provision, if Iran violates.

Now, Secretary Kerry told me negotiators will be working throughout the day, very mindful of the fact that if there is no deal, Congress could impose sanctions against Iran in the next coming weeks. That would scuttle any chances for a final agreement in June. Secretary Kerry told me everyone knows the importance of today.

John, Christine.

BERMAN: Elise Labott for us at the talks in Switzerland. Now, if Iran and the world powers do not reach agreement, there is serious concern that Iran could pursue, even accelerate, its nuclear program with no outside oversight. In an exclusive interview with CNN's Barbara Starr, the head of the agency that monitors global nuclear testing says Iran would almost certainly get caught if they set off a bomb by a network of seismic and radiological sensors.

(BEGIN VIDEO CLIP)

DR. LASSINO ZERBO, EXECUTIVE DIRECTOR, CTBTO: Any country that would try today to hide nuclear test explosion, we have I would say more than a 90 percent chance of detecting it.

(END VIDEO CLIP)

BERMAN: Of course, that would be past the point of preventing them of getting a bomb, though, which is the key here. With the hours ticking down now to the deadline in these discussions, House Speaker Boehner is leading a delegation of House Republicans; they arrive in Israel tomorrow. The speaker is set to meet Israeli Prime Minister Benjamin Netanyahu. You will remember that the speaker invited the prime minister to speak to Congress while Netanyahu was campaigning for re- election inside Israel.

I want to bring in CNN's Oren Liebermann live in Jerusalem. Oren, what's the reaction there to these last-minute rounds of negotiations?

OREN LIEBERMANN, CNN REPORTER: We have heard a lot from Prime Minister Netanyahu today and over the last few days. We expect that to continue with House Speaker Boehner here.

It is of course a very big day here in Israel; it is the swearing in of the Knesset, the Israeli parliament. But the nuclear deal deadline and the importance of that for Israel looms larger than all of that. Over the last fe days, Netanyahu has talked about what that deal would mean for Israel. He says it's a threat not only to the security of Israel, but to what he calls the more moderate countries in the Middle East. Netanyahu has pointed to what's happening in Yemen as a sign of Iran's aggression in the region.

Now, House Speaker John Boehner here tomorrow, but it was Senator Mitch McConnell here with a delegation of Republican senators here to support Netanyahu earlier this week. McConnell met with Netanyahu and McConnell said if there is a deal, McConnell will push for required congressional approval of that deal. McConnell also said he agrees with Netanyahu that, if there isn't a deal, McConnell will push for tougher sanctions on Iran.

Now, Boehner again here tomorrow. We haven't learned much about this visit with Boehner. They are releasing very few details about the schedule of this visit. We do know of course that he will meet with Netanyahu. We have also learned that House Speaker John Boehner will meet with the defense minister here in Israel. It's a very interesting development for to this meeting.

John, this could be a very quick visit. It could be only 24 hours. But it will be important certainly for Boehner and of course for Prime Minister Benjamin Netanyahu.

BERMAN: And of course the timing also interesting, just on the heels of this deadline for the framework of the deal between Iran and perhaps the five powers. Oren Liebermann for us in Jerusalem, thanks so much.

ROMANS: This morning, we're learning new details about the events that led up to the horrific crash of Germanwings Flight 9525. The German prosecutor investigating that crash says the copilot Andreas Lubitz suffered from suicidal tendencies prior to his aviation career.

[05:35:08] An a European government official tells CNN Lubitz visited an eye doctor who determined that the problem was psychosomatic and deemed him unfit to fly.

For the very latest on the investigation, let's bring in senior international correspondent Frederik Pleitgen in Cologne. Good morning, Fred.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Christine. And we've also have been in touch with a source that is close to the investigation, and they confirm that, after looking at all of the facts so far, after looking at his medical history, after looking at the fact that he apparently destroyed those sick notes that he got from his doctor in an attempt to hide his illness from his employer, that they are now zeroing in on the very real possibility that the main motive for why he did this could possibly be that he was afraid to lose his fitness to fly certification if in fact his employer found out about the psychological and of course the ensuing physical problem that he had as well.

That's what a source close to the investigation is telling us. They say they're still currently looking at everything that's on the table right now, but they also say realistically they're probably not going to get 100 percent confirmation as to what this man's motive would have been. They say, at this point in time, because you don't have the clear letter from him, a good-bye letter or something, stating why he did this, all they can do is look at circumstantial evidence, look at everything that's on the table right now.

At the same time, what we also have is new word from the French investigating body, the BEA. They also say their investigation is progressing as well. They're taking more and more and closer looks at what's on that cockpit voice recorder. And they say that there's two things specifically that they're working on two things. And they say it is systemic weaknesses that might have led to the crash. On the one hand, that is, the whole process of being able to lock the cockpit door; that is one thing they are looking at. And they also say they're also looking at a possible psychological evaluation within the entire process and catching possible psychological patterns, they say, for the future of course.

That is of course two things that are very important right now. And that's one hand, getting clarification as to what happened, why it happened, but also making sure something like this doesn't happen in the future again. Christine.

ROMANS: Absolutely. Fred Pleitgen, doing some great reporting for us from Cologne in Germany. Thank you, Fred.

New developments this morning of the recovery of the victims and the road, we can tell you a road is being built to the crash site. We're live with that part of the story, new developments there on that front, in 15 minutes.

BERMAN: 37 minutes after the hour. New boycotts and backlash over Indiana's religious freedom law called legalized discrimination. The governor has a new defense out this morning. There is a stunning new front page editorial from the big paper there. We will show it to you after the break.

[05:37:55]

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[05:41:29]

BERMAN: Happening this morning, a flurry of developments concerning the controversy surrounding the Indiana religious freedom law that critics say allows discrimination against gays in Indiana. Elected officials from Connecticut to Washington State have now barred government travel to Indiana. The NCAA is speaking out against the law. And now joining this chorus, the "Indianapolis Star", the big paper there, put out this front page editorial this morning topped by this huge headline banner that says "Fix It Now".

State officials are pushing back led by the Governor Mike Pence. You can see him right there. He has an op-ed in "The Wall Street Journal" today. He complains that the law has been, quote, "grossly misconstrued as a license to discriminate". This morning, though, Pence and legislative leaders, they are promising a fix, not a repeal.

Let's go to CNN's Miguel Marquez in Indiana. (BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT: John and Christine, with the Final Four coming to town and the NCAA itself expressing concern about the Religious Freedom Restoration Act, there is great pressure on the governor here and government to change SB-101. The mayor of Indianapolis, the Republican mayor, has signed executive order saying he wants the state government to change the act and to fix it as he says. The city council has also passed a resolution opposing SB-101.

Hundreds of protesters were in the meeting. Here's what it looked like when it passed.

(APPLAUSE)

MARQUEZ: A very raucous council meeting to be sure. The chairperson of the council in there is saying she had lost control, jokingly, of the meeting several times during it. But the protesters got what they want and they are promising to keep up the pressure across the entire state on the governor and the government here until they make those changes.

What those changes may be, it is unclear. Governor Pence obviously tripling down by writing a "Wall Street Journal" editorial, saying that the bill will stand, not saying he's going to change it. The Republicans in the legislature here, a supermajority in the legislature here of Republicans, saying they will seek fixes, but what those fixes will be and when they will come down is not very clear. Groups here say that there is an easy way to fix it, but that would mean recognizing gays and lesbians -- John, Christine.

(END VIDEOTAPE)

ROMANS: Miguel Marquez, thanks for that. And fixing it is what business leaders want. More of them this morning calling for changes to that new law. Very concerned. Nine CEOs including the heads of Eli Lilly, a big employer in the state, Anthem, Angie's List already said they were going to halt a big expansion there, Indiana University of Health. They wrote this letter to Governor Mike Pence asking for reform. They want Pence to push new legislation to clarify that law.

The letter says, quote, "We call on you to take immediate action to ensure that the Religious Freedom Restoration Act will not sanction or encourage discrimination against any residents or visitors to our state by anyone." CEOs say they're worried about how the law is affecting their employees, the reputation of the state, their ability to attract top talent. Tim Cook, the CEO of Apple, has said is discriminatory, period. He is concerned; he wants everyone to know his company does not discriminate.

I mean, when you think about it from the business perspective, the businesses are pretty much with one voice saying this is not a good idea for business in Indiana.

BERMAN: No, it's clear they didn't anticipate this kind of backlash.

[05:45:01] Because the business leaders are outraged, as you say. About a quarter till the hour right now. The defense of the trial of accused Boston Marathon bomber Dzhokhar Tsarnaev, they begin to lay out their case. The prosecutors rested on Monday with the last of their 90-plus witnesses giving testimony about wounds suffered by the youngest bombing victim. Several jurors were in tears. The attorneys for Tsarnaev will try to convince the jury that he was being controlled by his older brother Tamerlan in an effort to save Tsarnaev. That's what the defense wants to do; they want to save Tsarnaev from the death penalty.

ROMANS: A deadly shooting outside the gates of the NSA. Its' not believed to be an act of terrorism, but a lot of questions about why two men dressed as women smashed their stolen car into the police cruiser outside the Fort Meade, Maryland, facility on Monday. Now, officers immediately opened fire. One of the men was killed, the other wounded. A police officer was also injured. NSA officials are not commenting on the possible motive.

BERMAN: Whole thing is very strange.

We have breaking news from Northern Virginia this morning. Fairfax County police are searching for an escaped prisoner at Inova Fairfax hospital. They were transferring an inmate from Alexandria City jail to the hospital when that inmate overpowered a deputy and escaped. That inmate is described this morning as armed and dangerous.

ROMANS: All right, a lot going on this morning. 46 minutes past the hour. Let's take a look at what's coming up on "NEW DAY". Alisyn Camerota join us now. Good morning, Alisyn.

ALISYN CAMEROTA, CNN ANCHOR, "NEW DAY": Good morning, guys. Great to see you.

So as you know, it's deadline day for the Iran nuclear talks. And at this hour, it is still very much up in the air. There are major sticking points so we're live at the talks with all of the analysis and all of the ramifications you need to hear.

Also, the latest in the Flight 9525 investigation. More revelations about the troubled copilot and now word of a possible motive coming overnight from the German press. So we'll have that and so much more when Chris, Michaela and I join you at the top of the hour.

BERMAN: 90 minutes of gloating from Alisyn Camerota about leading the NCAA pool. Most of the show devoted to that.

CAMEROTA: Why not three hours of gloating?

ROMANS: There you go.

BERMAN: Thanks, Alisyn. Happening now, an intense recovery effort in the French Alps. Investigators identifying victims of Germanwings Flight 9525. And we just got word about an hour ago that a pathway, a road to the crash site, has been completed. We are live with new developments next.

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[05:51:08] ROMANS: Essentially a major blow to the capital punishment. The American Pharmacists Association adopting a policy that discourages members from providing drugs for use in lethal injections. It says providing lethal injection drugs is contrary to the role of pharmacists as healthcare providers. While the group has no legal authority to prevent pharmacists from selling execution drugs, those policies set ethical standards for their members.

BERMAN: Testimony resumes this morning in the trial of former NFL star Aaron Hernandez trial accused of course of killing Odin Lloyd. The fiancee to Aaron Hernandez, Shayanna Jenkins, maybe one of the most important witness for the prosecution. She was testifying for a second day on Monday. She was pressed about a box that Hernandez asked her to remove from their home the day after Lloyd was killed. She says she tossed the box into a dumpster, but could not remember where. Prosecutors believe that the murder weapon, which has never been found, may have been inside the box.

ROMANS: Jay-Z wants you to drop Spotify and subscribe to his music service. He and just a few of his friends you've never heard of -- oh wait, you've probably heard of all of these people -- they dropped by last night to talk about their new service. What's it going to cost? That's next.

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[05:55:43] BERMAN: All right, just in to CNN a short time ago, this in the recovery efforts in the French Alps. They have now finished a pathway, a road, to the crash site from the staging area. You can see the work being done right there. This is a very big development that will let them get there much more quickly and not just by helicopter. The road also very important to the families who so badly want to be close to their loved ones.

ROMANS: All right, 56 minutes past the hour. Time for an EARLY START on your money. U.S. stock futures slipping after a stellar rally yesterday. Stocks higher for the year. That rally put stocks higher for the year. The Dow jumped more than 260 points. You can thank Janet Yellen.

BERMAN: Thank you, Janet Yellen.

ROMANS: The Fed chair said, you know, the economy is not at its full potential. And that likely means the Fed will raise interest rates slowly and cautiously. For some reason, stock investors loved that. Oil prices are down 2 percent right now. We're watching a possible deal with Iran about its nuclear capabilities. That would allow the oil exports, so watch the oil market in particular today because of that Iran deadline.

Now, Jay-Z and some his friends and biggest names in music want to change how we listen. Backed by huge stars like Beyonce, Madonna, Kanye West, all of them together last night. Tidal is taking on streaming services like Pandora and Spotify. This is the first time the artists own the streaming service. A subscription, $10 for the basics, $20 for higher quality. Jay-Z and his friends want to be -- want the artists to be better paid for their songs. Remember, Taylor Swift pulled her music from Spotify last year. Now, you can find her on Tidal.

BERMAN: I wonder if the $20 gets you better artists.

(LAUGHTER)

BERMAN: Like if the not-so-good artists are for $10, but $20 you get the real people.

ROMANS: No, no, it's better qualify. It's the version of the song.

BERMAN: It is like Herman's Hermits for $10 and like The Beatles go for $20.

ROMANS: That's very funny but, no, I don't think that's how it works.

The idea of moving back home makes John Berman cringe. But it is the smartest move a young person with student debt can make. Live with Mom and Dad, pay down student debt, start investing, save for a home. 16 percent of young people plan to move home. Many millennials are paying 50 percent or more on their rent. With student loan bills, it just makes sense. You know, rents are rising and homeownership for millennials is at a record low. They're living at home, they're building up their savings, and then they're moving on. And it's a smart thing.

BERMAN: The system is broken.

ROMANS: It is. But you got to do what you got to do.

BERMAN: Smart thing. Speaking of smart things, is there a book that has all of the smart things that you can do? And there it is! "Smart is the New Rich: A Money Guide for Millennials" by Christine Romans. It is available now.

ROMANS: Thanks, John.

BERMAN: All right, deadline day to reach a nuclear deal with Iran. There is new progress to report this morning. New developments in just the last few minutes.

"NEW DAY" starts right now.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You think you'll be able to get a deal by the deadline?

JOHN KERRY, SECRETARY OF STATE: Good question.

UNIDENTIFIED FEMALE: I don't know if we'll get there.

WOLF BLITZER, CNN ANCHOR: These negotiations have been going on for 18 months. BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Even military action

would not be as successful.

UNIDENTIFIED MALE: Severe mental problems this copilot had been dealing with.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Was he continuing to be treated?

RICHARD QUEST, CNN AVIATION CORRESPONDENT: This assumes the doctors knew he was a pilot. Did they know?

UNIDENTIFIED MALE: Ongoing war over law and culture.

UNIDENTIFIED FEMALE: Look, this law is not intended to discriminate.

UNIDENTIFIED MALE: Repealing the bill is not going to happen.

UNIDENTIFIED MALE: No more time for clarifications. Fix it.

(END VIDEO CLIP)

ANNOUNCER: This is NEW DAY, with Chris Cuomo, Alisyn Camerota and Michaela Pereira.

CHRIS CUOMO, CNN ANCHOR: Good morning, and welcome to your NEW DAY. It is Tuesday, March 31st, 6:00 in the East.

And right now Iran hangs in the balance. Diplomats from the P5+1 are scrambling to reach a preliminary deal to limit the country's nuclear program. About 12 hours to go before the self-imposed deadline expires. Not quite clear what happens after that. To be sure, negotiators have their work cut out for them.

ALISYN CAMEROTA, CNN ANCHOR: Secretary of State John Kerry telling CNN that, quote, "tricky issues remain". And Russia's Foreign Minister says he's heading back to Switzerland to rejoin these marathon talks. So with the eyes of the world on these negotiations, will we see a deal in those next hours? And what if months of talks end in an impasse?

Let's get the very latest from CNN's global affairs correspondent, Elise Labott. She is live for us from Switzerland.

[06:00:00] What do we know at this hour, Elise?

LABOTT: Well, Alisyn, the fact that the Russian Foreign Minister is coming back could be a signal that the parties are close.