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Early Start with John Berman and Zoraida Sambolin

China Compiling Database Of Americans; Officials: Boston Attack "Encouraged" By ISIS; ISIS Propaganda Gives Away Target; Morning Beau Biden; Stocks Weigh Jobs, Oil; Yahoo Maps Shutting Down. Aired 5:30-6a ET

Aired June 05, 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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[05:30:11] CHRISTINE ROMANS, CNN ANCHOR: Developing overnight, personal information of millions of Americans stolen in a daring hack of U.S. government computers and officials putting the blame on China. What could Beijing be planning to do with all of that data? The very latest moments away.

JOHN BERMAN, CNN ANCHOR: The man killed by Boston police for allegedly plotting a terror attack was urged to carry out his plot by ISIS. New details emerging about the phone call that accelerated the investigation, who did the suspect called and what did he say that forced police to move in.

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

ROMANS: It's nice to see you, folks. It's 30 minutes past the hour. I'm Christine Romans. This morning, millions of current and former federal police are scrambling to check their bank statements and their credit reports after a huge hack that breached their personal information.

Federal officials say nearly every U.S. agency was hit affecting up to 4 million current and former employees of the U.S. government. The most stunning detail of all, the source of the hack, investigators believe that hack originated with the Chinese government.

CNN White House correspondent, Michelle Kosinski, has the latest.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, John and Christine. Right, we are hearing from the Office of Personnel Management that this enormous hack has happened, possibly the biggest government hack we have seen affecting up to 4 million former and current government employees who may have had their personal information accessed.

This Office of Personnel is kind of the HR Department of the federal government. They were actually trying to update their cyber security when they realized in April that it looked like an incursion has happened.

Now we know a little bit more detail about this and those employees are being contacted. There are reports out there that this could have come from China. For now, the White House is not commenting on that.

The federal government has just been plagued by these attacks especially in the past year. We heard about the White House and State Department computers being accessed.

Just in the last week, some 100,000 Americans had their personal tax information accessed within the IRS. That hack supposedly originated from Russia. At least that's what U.S. officials believed.

But both China and Russia have been suspected in numerous hacks in the past. In some of those cases, it is even thought that the governments were behind them.

As for China, U.S. officials believed there is even an element within the Chinese Army that is planning and launching cyber-attacks. It is unclear if that was the case here, but we expect to hear more information about this in coming days -- John and Christine.

BERMAN: Our thanks to Michelle. Intelligence officials tell CNN that investigators believe hackers working for the Chinese military are compiling a huge database of Americans information. It is not clear just what the purpose of that database is.

The Chinese government is rejecting the claims that it is behind the cyber-attacks. That is what it does. It rejects these claims. In a statement, the Chinese embassy says cyber-attacks conducted across countries are hard to track.

And therefore, the source of attacks is difficult to identify. Jumping to conclusions and making hypothetical accusations is not responsible and counterproductive.

ROMANS: This is the kind of information (inaudible) not clear exactly what was taken, but this is the kind of stuff that can do identity theft. It's a little bit of a departure from what has been -- the Chinese military has been accused of before.

BERMAN: Right. This is not typical espionage.

ROMANS: There's been a lot of espionage just outright stealing of intellectual property. Big companies have complained about this for years. This is a little bit different flavor, but you know, cyber security experts have said they can see where there are hacks that originate from the people's liberation army. They can see it very clearly the Chinese always deny it, though.

BERMAN: We are going to stay on this. New details this morning in the Boston area suspects that authorities say were initially plotting to behead conservative activist, Pamela Geller, before turning their attention to police.

Officials say at least one of the men involved in the plot was being encouraged to launch an attack by people overseas connected to ISIS. We are also learning more about why law enforcement moved when they did to question Usaama Rahim. Officials say they knew from a wiretap that Rahim had called his father earlier to say goodbye. CNN's Pamela Brown has the latest from Boston.

PAMELA BROWN, CNN JUSTICE CORRESPONDENT: Well, John and Christine, we are learning more about the role ISIS played with the alleged Boston terror plots. The plot to behead Pamela Geller in New York according to authorities and a separate plot to target law enforcement here in Massachusetts.

According to U.S. officials I've been speaking with, one of the three men involved with this conspiracy allegedly have been in contact with known ISIS terrorists overseas. That contact happened through social media we are told.

That the men believed that they were acting on behalf of ISIS, however, the family of one of the men, Usaama Rahim, who was shot and killed by police on Tuesday said, it is news to them that he had anything to do with ISIS. Here's what their attorney had to say.

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[05:35:07] RON SULLIVAN, RAHIM FAMILY ATTORNEY: The family, of course, is aware of various media reports that suggest that Usaama Rahim had been radicalized by ISIL. That comes as an absolute surprise to the family. They had not perceived any conduct or change in demeanor.

(END VIDEO CLIP)

BROWN: We are learning from the Boston Police Commissioner William Evans that Rahim was put under 24/7 surveillance around ten days ago. That's when he apparently bought those three knives from amazon.com according to the commissioner.

Authorities were growing increasingly concerned that he was becoming operational and apparently on Tuesday, there was a heightened concern because they believed he may be boarding a bus with one of those knives and launched an attack. That is why we're told those five officials approached him in the parking lot -- John and Christine.

ROMANS: All right, Pamela Brown, thanks, Pamela. Usaama Rahim's brother, Ibrahim, now backing off his initial claim that officers shot Usaama in the back after police screened security video of the shooting for his family, Rahim's family, he tells CNN's Erin Burnett, the family is still not convinced Usaama had links to ISIS.

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UNIDENTIFIED MALE: Of course, we dispute it. We don't know that to be a fact about Usaama as his relatives at all. We are a Muslim- American community. You know, I think you have to start speaking more about the Muslims of America.

And not the Muslims in Syria who are doing bad things who don't like America, and speak about the Muslims who actually live here who love America, that's me. That's Usaama. That's the Rahim family.

(END VIDEO CLIP)

BERMAN: New this morning, a remarkable setback for ISIS. A top Air Force general has revealed that ISIS propaganda accidentally revealed the location of an Islamic State headquarters building that coalition bombers then blew up hours later. Our senior international correspondent, Nick Paton Walsh joins us now live from Baghdad. Interesting, Nick.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: John, I think U.S. officials have been desperate to (inaudible) this looks like good news given the torrent of bad news that Iraq has been yielding in the past weeks.

This Air Force command stating what they call a moron of a building and they were able to use the geo tagging, which you can leave on your device or geo location.

That's more sophisticated using topography and landmarks around the place to work out where it is. But 22 hours after the post, three explosives slammed into the building.

It's still an expensive task, $60,000 worth of ammunition and then of course the cost of the aircraft in the skies about, but one success story there highlighting after days in which the State Department said 10,000 ISIS fighters killed since the start of the campaign.

Well, it actually it turns out the Air Force figure is 13,000. It is mute how they tabulate it and whether or not, the U.S. should be publicizing what is the body count. This is their way of stating success and progress here despite frankly what we are seeing on the ground, John, which is a substantial opposite.

Ramadi still in ISIS hands despite the campaign that launched weeks ago. Now ISIS cutting off the Ramadi dam outside that town and starving pro-government areas downstream to the south of vitally needed water of the security forces needed for the counter attack.

And also those Sunni civilians, the Baghdad government, predominantly Shia is supposed to be protecting constant stream of bad news frankly social media lock side -- John.

BERMAN: No, I think you make a great point, Nick. The overall strategy of ISIS in so far as it exists, there seems to be working. Nick Paton Walsh for us in Baghdad, thanks so much.

Breaking this morning, about 160 climbers trapped on one of the tallest mountains in Southeast Asia happened after a 6.0 magnitude earthquake rocked the island of Borneo. The epicenter is just 5 miles from the summit of Mt. Kinabalu where the 13,500 foot peak.

It is very popular for hikers and climbers. Rescuers right now are trying to climb by foot to reach those who are stranded. Five Americans were at the peak when the quake hit. At this point, it is unclear if they made it down safely. There is big concern about that this morning. We will stay on that.

ROMANS: New this morning, the death toll climbing after Monday's cruiseship disaster on China's Yangtze River. The eastern star has now been turned upright. All hope is gone of finding anyone alive. What had been a rescue operation now turns to recovery.

Chinese officials acknowledge a total of 97 bodies have been found, just 14 people were rescued on Tuesday. More than 300 people remain missing in what may be the worst Chinese shipping disaster in more than 60 years.

BERMAN: Delaware is mourning one of its favorite sons, Beau Biden. They are paying their final respects to the former state attorney general at a viewing today in a church in Wilmington. On Thursday, more than 1,000 people attended a beautiful memorial service honoring Biden at the Delaware statehouse.

[05:40:08] Beau Biden died after a battle with brain cancer. He was 46 years old. This is the picture of the viewing on Thursday, very moving. President Obama will deliver the eulogy at the funeral mass on Saturday.

ROMANS: The hydraulic drilling process known as fracking poses no direct threat to drinking water supplies. That is the assessment from the Environmental Protection Agency. A new report from the EPA found, quote, "no widespread systematic impact on drinking water."

The finding is a blow to many environmentalists. The EPA report did cite potential vulnerabilities including several instances where chemicals used at drilling sites found their way into the water supply.

BERMAN: A green light for the pink pill. An FDA advisory panel voted to recommend approval of Flibanserin better known as female Viagra. The drug is designed to treat hypoactive sexual disorder. This is the first time it was reviewed by the FDA which in the past has rejected it for having too many side effects. It now awaits official FDA approval.

ROMANS: All right, let's get an EARLY START on your money this morning, stocks mostly lower around the world. European and Asian shares down. Greece will not be making a loan payment due to the IMF today. The country is strapped for cash and risks default and a possible exit from the Eurozone.

That sent U.S. stocks lower yesterday. The Dow is down 170 points. So much to consider before the opening bell this morning, the may jobs report comes at 8:30 a.m. Eastern Time. This is the biggest economic report of the world basically, experts --

BERMAN: The world has ever known.

ROMANS: CNN Money polls experts every month and the experts say 222,000 jobs added, the same as last month, and the unemployment rate likely 5.4 percent. If true, those are decent numbers. I'll watch wages. They have been stubbornly stagnant, stuck at 2 percent growth for wages. The labor market is tightening. That should translate into higher wages, we hope. We all hope. Everyone wants a raise. You feel more confident about the labor market.

BERMAN: Sure. Endorse. I'm trying.

ROMANS: All right, 42 minutes past the hour. Police in Colorado trying to unravel a murder mystery, three people gunned down in two months. Two of the murders linked. I'll take you to Colorado next.

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[05:46:01]

BERMAN: Deepening questions this morning about a rash of unsolved shootings that are making people in Northern Colorado very uneasy. The latest is a 65-year-old man who was fatally shot just blocks from his home in Loveland.

Now local police, county sheriffs and the FBI have formed a task force to investigate the serial shooter is on the loose. Dan Simon has the latest from Colorado.

DAN SIMON, CNN CORRESPONDENT: John and Christine, this street is where the latest victim, 65-year-old William Canol was shot. He was actually just a few blocks from his house when he was gunned down. Now at this point, authorities are not saying that there is a firm link to the other shootings, only that there is a likeness.

At this point, an inter-agency task force that includes the FBI is investigating whether or not there is a connection. As we have been reporting, this is the third shooting in the area in the past six weeks.

In late April, a 20-year-old woman shot in her car. She was shot in the neck and survived. About month later, a 48-year-old man shot along the country road. His bicycle was found nearby.

Authorities say those shootings were committed by the same person. Both victims shot twice, but not revealing anymore similarities in terms of what happened in the shootings.

The question of course is whether the same person may be responsible for this third shooting. John and Christine, back to you.

BERMAN: All right, Dan Simon for us in Colorado, thanks, Dan. Let's take a look at what is coming up on "NEW DAY." Chris Cuomo joins us this Friday morning. Hello, Chris.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": Hello, my friends. The U.S. government hacked but like never before. I know you hear these stories and although it happens, but listen to this. The personal information of 4 million former and current federal workers compromised. You don't even really know it was taken or why. They just know the number that is at risk. Who do they think did it? The government says China did it. We will get reaction from Beijing.

Thus far they have not overtly denied it, but it is a new part of the secret game. We will figure out where it goes and why there is not more urgency. We will spin this in to what we know about the NSA now and surveillance.

Do we know everything there is? Was it just about phone calls? Does the internet have different rules applied? The answer to that is yes. We will tell you why.

We want you to say hello to the little pink pill. It is called the female Viagra. I don't know what Viagra is, but it's called the female Viagra. An FDA panel just blessed it. It could be available in pharmacies later this summer.

There are side effects, though, that you may want to be concerned about. We will talk to health experts about that ahead on "NEW DAY." So don't just run out and get it, John Berman, because we don't know yet exactly what it does.

BERMAN: There is no upside to any response. We will move on.

CUOMO: Upside.

ROMANS: It is an exciting development. We'll be right back.

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[05:52:27]

ROMANS: Three U.S. senators, including John McCain, calling for an end to the practice of using taxpayer money to honor the military at sporting events. McCain says the Super Bowl champion, Patriots and two other NFL franchises.

They've received hundreds of thousands of dollars for flag rollouts and other events. It's part of $7 million paid out overall. In a statement, the NFL says the amendment paints a distorted picture.

BERMAN: What an end to game 1 of the NBA finals, the Golden State Warriors held off the Cleveland Cavaliers in overtime despite heroic efforts from Lebron James. The Warriors trailed most of the game, but they did take over in overtime scoring the first ten points.

Never even close in the extra period. Look at that. Three for Harrison Barnes, Steph Curry with 26 points from Golden State. Lebron James had 44 for the Cavaliers, but the Cavaliers lost Kyrie Irving in overtime. May not be available for game two, Sunday in Oakland.

ROMANS: Yahoo! Maps was once the most high tech way to get around. Now it's going way of the atlas. More on Yahoo!'s big changes next.

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ROMANS: All right, welcome back. I'm Christine Romans. Let's get an EARLY START on your money, Friday edition, stocks lower around the world. European and Asian stocks lower. Greece will not make a loan payment due today instead pushing it off hoping creditors will agree to more bailout funds later this month. U.S. stock futures barely budging. The May jobs report is due out before the bell in about two and a half hours.

Facebook rolling out a stripped down version of its app. Facebook Lite designed to work quickly on the slow networks typically found in developing countries. They still have access to essentials, news feeds, status updates, photos, notifications. The app is available on Androids in Asia. It will roll out in Africa and Latin America in a few weeks.

Yahoo! Maps is shutting down. In a blog post, the company's chief software architect for the eight-year-old service will be discontinued by the end of the month. Yahoo! Maps is under intense competition from Apple maps and Google maps.

CEO Marissa Meyer has been shuttering failing products as she focuses on the stream lined businesses. You can fold up in a bunch of pieces and you know, it doesn't need a battery. It is called a map.

BERMAN: All right, Yahoo! Maps. Millions of federal employees hacked in a huge breach of government computers. We are talking unprecedented and the U.S. is pointing the finger at China. "NEW DAY" picks up the story now.

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UNIDENTIFIED FEMALE: Possibly the biggest government hack we have seen.

UNIDENTIFIED FEMALE: The breach could affect every federal agency in the United States.

UNIDENTIFIED MALE: The reality of it is, you cannot prevent these attacks. You have to learn to detect them.

UNIDENTIFIED MALE: We knew the urgency was there. We had to get to him.

UNIDENTIFIED FEMALE: One of the three men allegedly involved had been communicating online with known ISIS members.

UNIDENTIFIED MALE: We don't very facts to go on. We have allegations.

UNIDENTIFIED MALE: Beau had an extraordinary heart.

UNIDENTIFIED MALE: Our children live in a safer state of Beau Biden.

VICE PRESIDENT JOE BIDEN: Beau, I love you. I'm so proud of you. (END VIDEOTAPE)

CUOMO: Good morning. Welcome to your NEW DAY. It is Friday, June 5th, 6:00 in the east. Mich is off today and we have a big story for you. What could be the biggest hack of government data ever, the personal information of some 4 million current and former federal employees stolen from government computers, who did it? The U.S. is pointing directly at China.

ALISYN CAMEROTA, CNN ANCHOR: Well, China, already rejecting those allegations that they are responsible for the massive attack, this as new information reveals the NSA has been hunting hackers by secretly expanding internet spying on Americans.

We have both of these stories covered from every angle. Let's begin with Athena Jones at the White House. Good morning, Athena.

ATHENA JONES, CNN CORRESPONDENT: Good morning, Alisyn.