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Early Start with John Berman and Zoraida Sambolin

Boston Police Kill Man with Knife Investigation; Search for Survivors; FIFA's President Steps Down Amidst Scandal; Airline Bomb Threats; Takata Still Unsure of What's Wrong with Airbags. Aired 4:30- 5a ET

Aired June 03, 2015 - 04:30   ET

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

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[04:31:01] CHRISTINE ROMANS, CNN ANCHOR: Terror in Boston. A new arrest after police kill a man the FBI says had ties to ISIS, under surveillance for over a year. New information this morning, ahead.

JOHN BERMAN, CNN ANCHOR: Happening, with desperate for survivors, the time is running out. As divers try to find as many as 400 tourists after their cruise ship capsized. We're live with the very latest.

ROMANS: The head of world soccer steps down amidst a widening bribery and corruption scandal, now under investigation. We are live with a shocking turn of events.

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

BERMAN: Great to see you. I'm John Berman. Thirty-one minutes past the hour.

And breaking overnight, police have arrested one man in Massachusetts and searched a home in Rhode Island.

Law enforcement says both are connected to a man that the FBI thinks was radicalized by ISIS. A man shot and killed by Boston police in the joint terrorism task force yesterday. Boston police officials say 26 year Usaama Rahim lunged at officers with a foot-long knife. Rahim's family tells a radically different story.

National correspondent Deborah Feyerick has the latest.

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DEBORAH FEYERICK, CNN NATIONAL CORRESPONDENT: John and Christine, investigators from the Joint Terrorism Task Force have this man on radar and under surveillance most recently around the clock because of what they describe as an alarming uptick in his activity.

Now, he was being investigated for possible threats against police officers. Two members of the Joint Terrorism Task Force approached him only Tuesday morning. They did not have their guns drawn and were surprised when he turned and brandished a military-style knife. Now, they repeatedly ordered the man identified as Usaama Rahim to

drop the knife, he refused and then begun moving towards hem. That's when police say the two officers fired a shot, one hitting Rahim in the torso, another in the abdomen. Now, his brother is giving a very different account of what happened, saying that his brother was simply waiting for a bus to go to work when he was confronted by several officers who engaged in a conversation.

Apparently, Rahim, according to the brother, made a phone call to their father who actually heard the shots. The brother making that call because he needed, in his words, a witness for what was going on.

Now, authorities say that he wasn't going to be arrested, that he wasn't even going to be taken in for questioning but they did want to see what he was going and where he was doing, and that's why they decided to engage him. This is now all under investigation. There are surveillance tapes from CVS, where this whole thing happened. And those surveillance tapes are going to be shown to local area imams and leaders in the community.

Police questioning two associates, they believe who were in communication with Rahim, they believe Rahim was radicalized online by ISIS and other extremist elements.

Right now, all of this under investigation -- Christine, John.

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ROMANS: All right. Deborah Feyerick -- thank you for that, Deb.

Happening now: the Iraqi government is begging for more help in its fight against ISIS. At a meeting in Paris of the U.S.-led coalition against ISIS, Iraq's Prime Minister Haider al Abadi, complained his forces received more promises than actual support. This as the U.S. State Department Twitter feed accused the Assad regime in Syria actually aiding ISIS with air strikes as the Islamic militants advance on the city of Aleppo in northern Syria.

Tracking all of these events for us, CNN's Ian Lee who joins now live.

Good morning, Ian.

IAN LEE, CNN REPORTER: Good morning, Christine.

First, I want to take you to the battlefield outside of Ramadi, we're hearing that ISIS has stopped the water flow from the dam just outside of the city, drastically lowering the level of the Euphrates River, this is cutting water off, lowering the water to government-controlled cities downstream, Khalidiya and Habbaniya, two of the cities.

We're hearing also that this could be part of a tactic by ISIS that they can be using it as a strategic maneuver to lower the river, to help their forces maneuver.

[04:35:10] While this is take place, that meeting in France wrapping up, 24 foreign ministers and delegates from different countries talking about the best way to move forward against ISIS. We heard from the prime minister of Iraq, a lot of criticism saying more needs to be done including aerial surveillance to locate and strike ISIS targets.

But the U.S. came out with a bit of a different story saying that the strategy right now, both militarily and politically is working that it should maintain going forward. So, you're really hearing that the group is very committed defeating ISIS but the way forward differs a bit.

One thing, though, they did all agree on, is that there needs to be a stronger effort to stop the money and weapons especially foreign fighters from flowing in and replenishing the lines of ISIS.

ROMANS: Where does Turkey stand in that? I mean, you know, one senior officials at those meeting saying that Turkey should be the last line of defense. You know, what about Turkey and its role there?

LEE: There's always been a lot of criticism against Turkey about not doing enough to stop fighters from going into Syria or Iraq. Turkey, though, does have a very long border, and there are known smuggling routes and known smugglers who have used, have operated there for years, decades and know this.

So, it has been a game of cat and mouse for the Turkish governments. But, yes, you're right, they are the front line when it comes to that because most of the these fighters and supplies are coming through Turkey.

ROMANS: All right. Thanks for that, Ian Lee, in Cairo for us this morning. Thanks, Ian.

BERMAN: All right. This morning, crews are struggling to find new survivors among the 458 people aboard a Chinese cruise ship that capsized in a storm on the Yangtze River. Almost two days after the disaster, the count of people rescued stands at just 15. And hopes are dimming that any more will be found alive.

CNN's Anna Coren is standing by with the latest on the rescue and recovery efforts.

Anna, 400 people or more are still missing.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yes, that's right. More than 400 people unaccounted for, John, and it does not look good considering it's now 40 hours since the Eastern Star capsized on the Yangtze River. We are learning new detail, however, from the transport ministry, through a Web site that tracks the movement of ships. It shows that minutes before it capsized, it made a sharp turn on the river.

Now, we don't know whether that was done by the captain, the crew, whether it was because the tornado hit it. Whether there was some sort of mechanical failure, but it certainly shows that it made this sharp turn and headed in the opposite direction for several minutes before it capsized. Obviously, waiting for confirmation is to what took place there when that was the fact that caused the ship to capsize.

But we have to remember -- this is 9:30 p.m., most of people on board were senior citizens, retirees, many of them would have been in bed, or getting ready for bed. So, they really had, I guess, slim chance of getting out alive.

We're also learning that the boat was not overcrowded. There were plenty of life vests. From what we understand, from the reports, it went down so quickly, a few people would have had any chance of getting off alive -- John.

BERMAN: How much information are we getting from the Chinese government itself here? How transparent are they being about this disaster?

COREN: Well, look, as you can imagine, it is China, they do certainly seem to manage the flow of information that comes out.

Obviously, the families are furious. They are now saying that they are not getting enough information, that there is no transparency, that they're learning about the tragedy through the media. That's how they're getting their updates. Not through the government, not through the tour operators. That their loved ones, you know, obviously signed up with for this tour down the Yangtze River.

So, there's a great deal of angst and grief, being expressed by family members. Many of them now gathering down at the site where the ship capsized. So, as you can imagine, Chinese authorities are closely, tightly, managing the situation.

The premier of China, Li Keqiang, he was down there obviously with the survivors, with the rescue team, saying every effort needs to be made to save any lives. They are throwing everything at this. And obviously, as the minutes, as the hours go by, it's going to be less likely that they will find any more survivors.

BERMAN: All right. Anna Coren for us -- appreciate it.

[04:40:00] ROMANS: New this morning, the National Security Agency is losing its authority to store the bulk collection of Americans' records. President Obama signed the USA Freedom Act last night following weeks of congressional drama, in a 67-32 Senate vote on Tuesday. The compromise bill restores some NSA surveillance program that expired over the weekend.

But within six months, the government will need a special court order to get phone records. Those records will now be held by phone companies, not the NSA.

BERMAN: Add the Pentagon to a growing list of location that's may have received a shipment of live anthrax.

The Pentagon's police force received a shipment of what was supposed to be dead anthrax from a Utah lab from one of three lots that have now been shown to contain live anthrax. It's believed up to a dozen states and facilities in Canada, South Korea and Australia, received shipments, some of them via FedEx dating back to 2007.

ROMANS: All right. Time for an early start on your money this morning. European stockings are higher this morning ahead of the European Central Bank interest rate decision. Investors also watching negotiations before Greece's Friday debt deadline.

Here, the U.S. stock futures up a little bit. You know, yesterday, stocks dipped a bit. I'm not too worried about it. It was down about 28 points.

Walmart is giving more raises. The biggest employer in the nation will raise wages of 100,000 managers by as much as 26 percent. Wages for managers of more complex departments like produce, electronics and auto care will start at $13 an hour and go up to almost $25. Other departments will start at 11 bucks an hour up to $21.

Walmart started raising wages in its stores up to $9 an hour in April. About 500,000 workers will get a raise this year. And you know, you're going to see that, we'll watch that. We'll see that in the profits reports for sure. They said about -- their profit will take a hit because they'll pay money.

BERMAN: You know who's making a lot of money, except Blatter, who says the head of world soccer but says he's quitting after a scandal rocked his organization after he claimed he wasn't going anywhere. So, what happened in just four days that has him running for the hills?

We'll tell you all the new developments, next.

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[04:45:43] ROMANS: Just days after being reelected a stunning about- face by Sepp Blatter. He announced he is stepping down as president of FIFA, the governing body of world soccer. This on the heels of a sweeping indictment alleging corruption at the highest levels of the Swiss-based organization. And as the U.S. Justice Department confirms Blatter himself is a target in that investigation.

CNN international sports anchor Amanda Davies is live in Zurich for us -- Amanda.

AMANDA DAVIES, CNN INTERNATIONAL SPORTS ANCHOR: Hi, Christine. Yes, the morning after the very explosive day before here in Zurich. And from the outside, you wouldn't know that very much has changed. There's a huge football tournament going on over our shoulder, the FIFA staff coming in and driving through the gate for a normal day at the office.

Except it's not a normal day at the office, because president Sepp Blatter, the man who has led hem here for the last 17 years, is beginning the end of his tenure. We understand that he is inside FIFA HQ, there's been a staff meeting this morning.

A group of students actually turned up here. They were expected to be given a tour the a10:00 this morning local time. But they were asked to go away because of the circumstances. And come back a little bit later on.

But it really has been quite an incredible four days from that emphatic, defiant performance on Friday, after Blatter was re-elected as a fifth term as president. So, where we were yesterday in that press conference where he said his mandate obviously wasn't for everybody.

And he feels that his time, finally is up. The FBI have confirmed they are investigating the FIFA president, although no allegations have been released as things stand. And his daughter Corinne Blatter has released a statement basically saying his decision, has nothing, absolutely nothing at all to do with the accusations that are currently circulating.

But the FBI have shown that they mean business with this investigation. Sepp Blatter himself said there are more bad days to come. We just await to see what those bad days are and when they are.

ROMANS: The leading sports journalist in this country, Amanda, he said he heard the news and singing ding-dong the witch is dead.

BERMAN: Ah!

ROMANS: Yes. So, you can see, this is definitely making a lot of -- shaking the ground here, no question around the world. Amanda Davies, thanks for that.

And now to politics, the still undeclared Jeb Bush using a bit of home field advantage to attack would-be Republican rivals. While addressing an economic summit in Orlando, the former Florida governor took aim at Rand Paul, on national security. Bush also went after his friend Marco Rubio who suggested in a video message to the summit that Republicans need to elect younger leaders.

BERMAN: The Florida primary, it's going to be interesting both of those gentlemen --

ROMANS: Oh, yes.

BERMAN: -- facing off against each other.

A crowded Republican field to get another entry. The Louisiana Governor Bob Jindal is expected to announce his decision on a possible 2016 run at a June 24th event in New Orleans. A source close to Jindal tells CNN he is, quote, "likely to seek the Republican nomination." Governor Jindal formed a committee last month to explore a possible presidential bid.

ROMANS: Outrageous video out of Michigan -- Floyd Dent has reached a settlement with the police department in the city of Inkster after video surfaced of Dent being beaten during a traffic stop. But the catch, taxpayers in the city will directly foot the $1.4 million tab with a one-time property tax hit that comes to an average tax bill of about $180. You get to pay for your police.

Troubling new details of the TSA's failed security test. How easily replica weapons made it past screeners, next.

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[04:53:26] BERMAN: Federal authorities are investigating a series of bomb threats against commercial airline flights originating or landing in the United States. This all comes on the heels of a scathing report on airport security failures.

Let's get more from CNN's Rene Marsh in Washington.

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RENE MARSH, CNN AVIATION & GOVERNMENT REGULATION CORREPONDENT: Well, John and Christine, bomb threats made against at least four planes with passengers on board Tuesday, a United flight to Chicago, Delta Plane to Atlanta, a U.S. Airways flight to Philadelphia, and a fourth plane after it left Portland, Oregon, headed for Mexico -- all targeted. None of the threats were credible, but law enforcement is now investigating the source.

Coincidentally, the series of bomb scares come as we are learning more about TSA failures in detecting prohibited items like weapons at airport checkpoints. And now, there's been a major shake-up at TSA. The acting TSA administrator, Melvin Carraway, is out, after embarrassing news, undercover operations designed to test TSA's ability to detect explosives and weapons at airport security checkpoints yielded a 95 percent failure rate.

CNN has also learned undercover teams who smuggled weapons and fake explosives past security were not weapons experts, security or even law enforcement. They were regular staff with the Department of Homeland Security inspector general's office.

Now, Homeland Security Secretary Jeh Johnson wants screening procedures revised, more training for officers. And screening equipment re-evaluated.

[04:55:04] The president is urging Congress for this nominee for new TSA administrator. The agency has been without a permanent leader for five months -- John, Christine.

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ROMANS: Yes, they've got get that leadership gap filled, and they've got to get that stuff fixed right away.

Speaking of getting fixed, Takata air bags responsible for the largest recall ever. Are the questions the company still has to answer like how to fix the problem, next.

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ROMANS: I'm Christine Romans. Let's get an EARLY START on your money this Wednesday morning.

European stocks higher right now. Investors waiting for the outcome of a Greek debt negotiations. Greece's prime minister will meet with E.U. leaders today to go over a last-minute proposal to avoid default. U.S. stock futures up, too. Yesterday, there was a little bit of a bit of dip, but still, pretty close to record highs, folks.

Takata, the airbag maker, still doesn't know what's wrong with its affected airbags, the airbags that killed at least five people. Thirty-four million cars, that's 1 in every 7 on U.S. roads, have been recalled because of issue.

[05:00:02] But even after months of testing, the company still isn't sure what's wrong. Takata's still using a chemical some have blamed for the defect, and some of the replacement airbags will need to be replaced. That's right. Some of the replacement airbags will need to be replaced because of potentially a faulty part; that was testimony yesterday on Capitol Hill. The company bringing Congress up to speed on just how slowly this is going. It could be about five years, and car safety experts are just aghast, basically.

BERMAN: EARLY START continues right now.