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Early Start with John Berman and Zoraida Sambolin

David Bowie Dies at 69 After Cancer Battle; Papers Served to Extradite El Chapo; Sanders Surges in Iowa, Trump to Make "Tonight Show" Appearance; Golden Globe Winners; North Korea Claims to Hold American Hostage; Gas Cheaper Than Powerball Ticket. Aired 4:30-5a ET

Aired January 11, 2016 - 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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[04:31:21] JOHN BERMAN, CNN ANCHOR: The breaking news this morning, David Bowie, music icon, just inspired generations of people who love rock and roll. He has died at the age of 69 after a battle with cancer. New information coming in just ahead.

CHRISTINE ROMANS, CNN ANCHOR: Breaking overnight, papers served to bring Mexican drug lord, El Chapo, to the United States, as questions mount surrounding his secret interview, his secret meeting conducted by actor Sean Penn, while on the run.

BERMAN: Inside North Korea, CNN with an exclusive interview, a man who says, he is an American being held prisoner for espionage. We're live.

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

ROMANS: Good morning, I'm Christine Romans. It is 31 minutes past the hour.

And breaking news this morning, one of the world's great musical innovators and performers has died. David Bowie, a true legend, has died of cancer. His publicist released a statement just hours ago saying Bowie had been battling an unspecified form of the disease.

For the very latest development, I just want to bring in CNN's Phil Black in London, Phil?

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN CORRESPONDENT: John and Christine, good morning. David Bowie was born in Brixton, South London back in 1947. That was in the early '70s that he exploded around the world music scene as a glam rock star. That was just the beginning of an extraordinary changeable career.

Over -- around five decades, he explored different forms of art, not just music but also he look at theater, film, the visual arts, fashion as well. He defied genre. He grew to become a figure that is widely considered to be one of the most influential in modern music today. His 27th studio album released to plays just last week on his 69th birthday. He's got the very low profile in recent years. He hasn't toured a huge disappointment to his legends and generations of fans. Many of them will be surprised to learn what we have all discovered today, and that he has been unwell for the last 18 months battling cancer. Although his family have not revealed precisely which and that he has lost that battle dying peacefully, they say.

His family have asked for privacy but they do acknowledged that they will not be the only ones feeling this loss around the world today. John, Christine?

(END VIDEOTAPE)

BERMAN: You know, back his statement from the British Prime Minister David Cameron. He put out on Twitter. He said, "I grew up listening to and watching the pop genius David Bowie. He was a master of re- invention, who kept getting it right. A huge loss." You know, a loss for Britain, a loss for the world and a loss for rock and roll fans, you know, all around the world.

ROMANS: A loss and a shock. His fans did not know he was ill.

BERMAN: Yeah. I had no idea.

ROMANS: His battle had happened completely behind closed doors. And he just dropped his new album on Friday, 69th birthday.

BERMAN: I remember -- I going to say I was so excited I saved up for a C.D. player in 1985. You know, I got my C.D. player. And one of the first C.D.s I bought, I thought a used copy of the Rise and Fall of Ziggy Stardust and the Spiders from Mars. I thought I was so cool. I was like the only 14-year-old with the coolest album of all time.

And in fact, you know, he was one of the best.

ROMANS: I thought with his family as they grief.

BREMAN: Indeed.

All right. Breaking over night, extradition papers have been served at the Mexican prison where captured fugitive Joaquin "El Chapo" Guzman is being held. The U.S. is seeking El Chapo, who can be tried on at least seven drug-related indictments. The extradition though could take months.

This morning, there are so many new questions surrounding El Chapo's interview with Sean Penn for "Rolling Stone." The interview was set up through Mexican actress, Kate del Castillo, a long time El Chapo supporter. She put on a supported tweet about El Chapo a couple years ago.

Authorities say she kept in touch with Guzman touring his months on the run using disposable cell phones and encrypted messaging.

CNN's Nick Valencia has new details. (BEGIN VIDEOTAPE)

[04:35:02] NICK VALENCIA, CNN REPORTER: John and Christine, we're getting contradictory information from the Mexican government as to whether or not they knew about this meeting between Sean Penn and Joaquin "El Chapo" Guzman.

(FOREIGN LANGUAGE)

VALENCIA: For the first time, we hear from the drug kingpin himself. Despite being on the run, the drug lord Joaquin "El Chapo" Guzman agrees to an interview with actor and activist, Sean Penn, a cinematic plot twist to an all ready surreal story.

(FOREIGN LANGUAGE)

VALENCIA: In a report for "Rolling Stone," Penn writes, the pair met face-to-face in October 2015, three months after El Chapo's brazen prison escape. According to Penn the meeting happened somewhere in the middle of a Mexican jungle and included tequila and tacos.

His irrational fear of being watched by armed drones and being surprised by El Chapo's "Chivalry." These clips are part of replies to follow up questions from Penn, sent to a Guzman representative, who asked the questions off camera.

(FOREIGN LANGUAGE)

VALENCIA: The meeting Penn says was brokered by Mexican actress Kate del Castillo. It was 2012 when del Castillo reportedly developed a friendship with El Chapo after posting a series of tweets critical of the Mexican government, while celebrating the notorious drug trafficker. Del Castillo has not commented since publication of the "Rolling Stone" article Saturday night. CNN has reached out to her.

With the world's most notorious drug trafficker now behind bars in the next step is this entire process is extradition. Source tells us that that extradition could happen as soon as this summer. John, Christine?

(END VIDEOTAPE)

ROMANS: What a story. All right, Nick Valencia, thanks to that.

Dramatic new poll results this morning show Bernie Sanders surging in Iowa. He is now neck and neck with Hillary Clinton. The NBC News/Wall Street Journal/Marist poll shows Clinton just three point ahead with Sanders that is well within its margin or error.

In New Hampshire, the same poll find Sanders maintaining his leave four points ahead of Clinton. The latest, let's bring in CNN's Chris Frates in Washington.

CHRIS FRATES, CNN CORRESPONDENT: Hey, good morning, John and Christine. Those numbers put both Sanders and Clinton inside the margin of error. And some context is important here. Sanders has led Clinton in most New Hampshire polls recently, but Clinton's slide in Iowa is new. She held a strong lead for the last month or so, and that's very concerning news for the Clinton camp.

They spent a lot of time, money and energy in Iowa to bring out her supporters and avoid a repeat of 2008 when she faced a humiliating third place loss to Barack Obama.

But Sanders has also been assembling a robust ground game ahead of the February 1st caucuses. So this race seems to be tightening at just the right time for him. Both candidates were asked Sunday about the new polling. Here's what they said.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS, (I-VT) DEMOCRATIC PRESIDENTIAL CANDIDATE: When you consider how far we have come over the last eight months, it really is incredible. We started at national polls at about 3 percent. I think most of the recent polls have us ahead in New Hampshire. I think we're gaining steam here in Iowa. I think we have an excellent chance to win here.

HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: These polls go up, they go down. I stay pretty focused, as I think we all should, on what we have to do to build on the progress of the Obama administration, but go even further and that's why I've outlined a very significant agenda to raise wages and to take on the gun lobby and to be, you know, making America safe in every way that I can.

(END VIDEO CLIP)

FRATES: So Clinton trying to downplay her sliding poll numbers. And it is no surprise that she went right to the gun issue. She's been hammering Sanders support for the gun industry hoping it helps her with democratic voters. She is criticizing for voting to give immunity to gun manufacturers and dealers whose guns are used in a crime.

That is legislation that Sanders said he'd now revise. Clinton also won a support of the influential gun control advocate with Gabby Giffords endorsing Clinton. Giffords, of course, was a congresswoman who was shot in the head at the event in her district five years ago. So that's an influential voice added to Clinton's camp.

But with polls tightening in Iowa, both Sanders and Clinton will be in the state today. So we'll see how the gun issue plays out there. John, Christine?

BERMAN: All right, Chris, thanks so much.

This morning Donald Trump will hold a town hall in New Hampshire. Then he heads to New York to appear on "The Tonight Show."

So lately, Trump has been questioning whether Ted Cruz is eligible to be president because he was born in Canada. In Nevada, Trump escalated that rhetoric.

CNN's Maeve Reston was there and has the latest.

MAEVE RESTON, CNN NATIONAL POLITICAL REPORTER: So John and Christine, we are really seeing this battle intensify between Donald Trump and Ted Cruz as Ted Cruz has surge in the polls in Iowa.

[04:40:02] Both men out on the campaign trail this weekend, both in Iowa and then Donald Trump coming to Nevada which is going to be one of the key early primary states.

Donald Trump did a very wide ranging speech here in Reno offering a very stiff foreign policy critique of Obama and Clinton, but also repeatedly returning to Ted Cruz. He is just coming back to the citizenship issue over and over again talking about there is uncertainty about the fact that Ted Cruz was born in Canada even though he was born to an American mother.

A lot of constitutional scholars say this is not an issue. Ted Cruz says it should not be an issue for voters. But Donald Trump is really trying to raise questions about Cruz's electability here.

And we have come sound from that. Let's take a listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: So Ted has to solve his problem. He's got a big problem. And the problem isn't me and the problem isn't anybody. It's the fact that, if he were lucky enough to win, which I don't think he's going to, but if he were lucky enough to win and he's your candidate, he's going to be sued by the Democrats. They had already said they are going to be suing him on the definition and its right here. On the definition is he natural born? And a lot of people think that means you have to be born on the land, not born in Canada. And he was born in Canada.

(END VIDEO CLIP)

RESTON: Now, of course, we know why Donald Trump is doing this. A lot of the voters here in the crowd in Reno are deciding between Cruz and Trump. So it will be fascinating to see whether he can really create questions about Cruz at this pivotal time in the campaign and how this will all play out. John and Christine?

ROMANS: All right Maeve, thank you for that.

Now it's time for an EARLY START on Your Money this Monday morning. A scary beginning to the trading week in Asia.

Overnight, the Shanghai composite, wow, down more than 5 percent. But Europe holding on to gains right now. Futures here in the U.S. are higher.

A major milestone for Apple this morning reports as the company is streaming service. Apple music just hit 10 million subscribers, the Financial Times, so it took Apple just six months to reach that tally. It took rival Spotify six years do the same, but that was Apple's hope to top into existing iPhone and iTunes customers and get them to pay for the service.

However, analysts tell the Financial Times that the success could come at a cost as listeners opt against downloads at the iTunes store. Apple stock looked at that down almost 8 percent this year. It now illustrated below 100 bucks of share. It is one of the most widely held stocks in the -- well look at that, it just had a terrible ride this year and it is down I think 25 percent or something over the past year.

BERMAN: But it probably looked a like 1.5 million percent over the last 20 years.

ROMANS: Yeah, but people forgot that Apple stock could go down and it has gone down.

BERMAN: All right. A star-studded night at the Golden Globes with Leonardo DiCaprio's "The Revenant" taking home top owners. The film which features up there untold was named best drama by the Hollywood Foreign Press Association, DiCaprio one of the best actor.

Big night for "The Martian" named best musical or comedy. Ridley Scott, the director joking about the fact it wasn't a musical or a comedy. Matt Damon, you see him right there, best actor, for his category in the work in the film. Jennifer Lawrence she won best actress in a musical or comedy for her role in "Joy." Everything she said is charming. Sylvester Stallone capture best supporting actor for "Creed". He thanked his imaginary friend, Rocky Balboa during his attempt to speech.

(BEGIN VIDEO CLIP)

SYLVESTER STALLONE, ACTOR: The Hollywood foreign press is incredible. Last time I'm here it was 1977 and that was...

(END VIDEO CLIP)

BERMAN: Yeah, and that was Rocky came out. Kate Winslet, become best supporting actress for "Steve Jobs." That was film with four awards they including (inaudible) for best.

ROMAND: She thought -- wasn't expecting at all. She was really shock. It quite a manner.

BERMAN: No, because the film didn't do well. I mean...

ROMANS: Yeah.

BERMAN: ... you know, it can win. Apparently still the Golden Globe which may or may not be a good prognosticator for the Oscars.

[04:43:42] A CNN explosive, inside North Korea, speaking with a man who says he is an American now being held prisoner for espionage.

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BERMAN: Breaking news this morning claims that North Korea is holding an American prisoner. Just a few hours ago, Pyongyang allowed CNN to interview a man who says he used to live in Fairfax, Virginia and is a naturalized U.S citizen. The state department however cannot confirm that the man is in fact a citizen. Our inclusive interview comes as tension escalates sharply on the Korean Peninsula. Following North Korea's claim that it tested a hydrogen bomb.

Joining us now with the latest CNN's Will Ripley in Pyongyang who spoke to this man. Will, what did he tell you?

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: John, this really is a diplomatic bombshell. Keeping in mind, this is less than a week after North Korea's fourth nuclear test and all of the international response that it's followed. Now you have the North Korean government presenting to us a man they say is an American citizen who has been spying, stealing nuclear secrets and military secrets from this county.

Keep in mind, this case was completely off of everybody's radar. The Swedish embassy here in Pyongyang tells us they received a cable from the state department after CNN broke this story over night. So, nobody knew about this man, Kim Dong Chul who says he became a United States citizen in 1987.

We were able to photograph his American passport which seems to collaborated his story that he has U.S. citizen but has been living in China for a decade traveling back and forth to North Korea for business purposes. And it was during that travel back and forth that he says he was collecting information from a source and leaking to sources on a conservative movement in South Korea, the movement that intends to try to take down Kim Jong-un's regime. Listen.

(BEGIN VIDEO CLIP)

RIPLEY: How did it work, how did you pass on the information that you collected.

KIM DONG CHUL (Through Translator): I brought the local resident and have him gather important materials considered national secrets in this country such as military secrets, nuclear related materials. I got these materials hidden in my car and secretly brought into China where I handed the mobile, or I would go to South Korea and deliver them directly.

(END VIDEO CLIP)

RIPLEY: Now it's important to point out that we have no way of knowing if Kim was making these statements under duress. We suspect that our entire conversation was being monitored from another room in the hotel where we conducted the interview. South Korea, the government sources that we've checked were there, are denying that his claims, calling him groundless, even the U.S. state department not commenting. They won't even confirm that Kim is an American citizen. They told us, "Speaking publicly about specific purported cased of detained Americans can complicate our tireless efforts to secure their freedom."

You might also notice John that he was speaking in Korean even though he understands English, the reason for that the North Koreans insisted that he speak Korean. We think it's because, gain, they were listening to every word he was saying. And so it seemed during the interview, the louder things were actually intended for people who were not in the room as far as the messages is accounted almost identical to Pyongyang propaganda, John.

[04:50:03] BERMAN: Well again, that makes the question, obviously, this was carefully stage managed. Will, what are the North Koreans get out of this?

RIPLEY: Well, they have another bargaining ship. The nuclear test last week was certainly an effort to get the attention of the world and it did. And specifically, the United States and the United States responded just four days later sending a B-52 bomber over the weekend right up to DMZ escorted by South Korean fighter jets. Now, you have the North Koreans announcing they have an American citizen in custody, accused of stealing nuclear secrets.

The end game here for Kim Jong-un's is they want to sit down at the negotiation table with the United States and other world powers. They want improve their economy, they want sanctions lifted. And perhaps, they feel that by having an American detainee, they may be able to work out some sort of a deal to receive aid or a reduction in all of the international sanctions against this country. But so far, no response indicating that type of action from the U.S.

ACOSTA: You Know, Will Ripley inside North Korea during this fascinating time there, you continue to do groundbreaking work. Thank so much, Will.

ROMANS: Right, four teenagers who allegedly gang raped an 18-year-old woman and gun point in Brooklyn, New York. They are now in police custody. One suspect is still on the loose. Police say the teens took turns raping the victim at a playground last Thursday night after forcing her father to leave the scene. The father says he had no choice but to run for help. At the time he returned with police, the suspects were gone and his daughter collapsed on the side of the road.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: If I was still there and fought, you know, yeah.

UNIDENTIFIED MALE: You thought you would have died?

UNIDENTIFIED MALE: Yeah.

(END VIDEO CLIP)

ROMANS: Two of the teen suspects were turned in by their parents. Two others were apprehended by police. The alleged rape victim was treated at a local hospital and released.

BERMAN: The trial of Baltimore police officer Caesar Goodson gets underway this morning. Goodson drove the van that carried Freddie Gray from the site where he was arrested at Gray Baltimore's Western District police station. Gray emerged from that 45-minute ride critically injured and unresponsive. Goodson is charged with second degree depraved-heart murder. Gary's election is expected to take two days. The trial could last two to three weeks.

Thousands of families are now enforce to relocate from the upscale L.A. suburb Porter Ranch, a natural gas leak is fueling 1,000 pounds of methane gas per hour forcing California governor Jerry Brown declared a state of emergency. Residents in the area are experiencing nausea and nosebleeds, headaches. Nearly 3,000 homes have been evacuated. Another 1,700 families are in the process of leaving.

Southern California gas is hoping to stop the leak by March.

ROMANS: Wow. Four days after declaring a state of emergency, Michigan governor Rick Snyder is up providing bottled water, filters and testing kits to the people of Flint. The city's tap water has been polluted with lead since Flint officials decided to go with a cheaper water source two years ago. The bottled water and filters will be distributed by five fire houses around the city.

And that story is a real telling story of government failing the people of Flint, Michigan. I mean when you think of children drinking water tainted with lead for months and months, it's just really a tragedy that was happening.

A gallon of gas is now cheaper than a Powerball ticket. We're going to tell you where Americans are saving most when we get an early start on your money next.

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[04:56:37] BERMAN: This morning German Chancellor Angela Merkel responding the pressure following a series of New Year Eve robberies an assaults and some new details about the man who attacked the Paris police station last week, this is believe to be an ISIS inspired attack. German officials are revealing he'd been living at the German refugee shelter German chancellor is now proposing changes to make it easier to deport asylum seekers who commit crimes this complicate the already in a white hack controversy over immigration across Europe.

CNN Atika Shubert joins us live from Cologne in Germany with the latest. Good morning Atika.

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: Good morning John, your absolutely right Germany was already anxious about as many as a million refugees coming in the last year alone fears of a crime wave of whether or not all of the police and social services would be able to cope and now this happens. We're actually in the square where those mass assaults took place, it was absolute chaos police were completely overwhelm and under stuffed.

And we now know of course that of the suspects identified as perpetuators, more than half of refugees or asylum seekers. This on top of the news that the Paris attacker was also a refugees staying here in Germany, so its put incredible pressure on Chancellor Angela Merkel and her interior minister and the local interior minister here in Cologne are currently being grilled about how exactly the government will responds why they appeared of loss control of the streets of Cologne that night. John. BERMAN: All right, Atika Shubert, before so many questions so much controversy there and not going to die down anytime soon. Atika, thank so much

ROMANS: All right, 58 minute past the hour. Time for an EARLY START on Your Money this Monday morning.

A dramatic drop of China over night. The Shanghai tanks more than 5 percent, but so far market in Europe are shrugging it off and trading higher future here in the U.S. (inaudible) a little bit as well.

If you filled up your tank this weekend chances are you paid less than two bucks a gallon,. The national average for regular is now a $1.96 down $0.05 in a last month an $0.18 less than last year. But a handful of states have average price is below $1.75. Where is that? Missouri -- those drivers there enjoying the lowest price dissemination the prolonged slump and crude oil should keep regular gas low throughout 2016, so a gallon gas is less expensive than a Powerball. But millions will be hit it up gas station for a shot at this week $1.3 billion jackpot.

Powerball is that making a lot more millionaires so than billionaires. In the current jackpot run 59 tickets have won a million by matching all five numbers but not for Powerball. Eight tickets won $2 million, thousands of people won smaller prices as well. The odds are hitting that billion dollars plus jackpot, 1 in 292 million, but the odds of wining anything at all but one in 25.

BERMAN: Yeah, but that's like $2 to $4. The thing that it makes sound very good, you know, long odds.

EARLY START continues right now

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BERMAN: The breaking news this morning -- so sad. The work world waking up to the stunning news David Bowie dead at the age 69 after a battle with cancer did not know this was going on. We have new details just a head.

ROMANS: Breaking overnight, the extradition process to bring Mexican drug lord of El Chapo to the United States has begun. And new questions mount over his secret jungle meeting with actor Sean Penn.

[05:00:01] BERMAN: A CNN exclusive inside North Korea. Our reporter speaking with the man who says he is being held prisoner by the government there accused of espionage. We're live.

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