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Early Start with John Berman and Zoraida Sambolin

Iran Demands U.S. Apology, Seizes Sailors; Obama Delivers His Final State of the Union Address; ISIS Blamed for Suicide Bombing in Turkey. Aired 4-4:30a ET

Aired January 13, 2016 - 04:00   ET

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

JOHN BERMAN, CNN ANCHOR: President Obama in his final State of the Union Address. What he says is one of his biggest regrets and who he targeted from that podium.

[04:00:06] Good morning, everyone. Welcome to EARLY START. I'm John Berman.

CHRISTINE ROMANS, CNN ANCHOR: And I'm Christine Romans. Nice to be with you this morning.

It is Wednesday, January 13th. It is 4:00 a.m. in the East.

Our breaking news this morning: Iran is now demanding an apology from the U.S. after the Iranian Revolutionary Guard captured ten American sailors in Iranian territory waters. Iran is still holding those sailors. Nine men, and one woman, holding them on Farsi Island in the Persian Gulf. The latest word this morning from Iranian media is that the U.S. sailors are likely to be released soon.

For the latest, I want to bring in international diplomatic editor Nic Robertson. He's monitoring this dramatic situation for us from London.

I got to tell you, yesterday afternoon, late yesterday afternoon when this word broke, word from the Pentagon was they expected this to be resolved relatively quickly. Are you surprised it's taken this long?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It's become a rollercoaster. I think the way that things play out with the Iranians in a situation like this perhaps shouldn't surprise us. But at the same, I am surprised because the language that we were hearing both from the Iranian side and the Pentagon as well and diplomatically, the foreign minister speaking, the Iranian foreign minister to Secretary of State John Kerry, it did all seem to be on track. When daylight broke around Farsi Island this morning, several hours ago now, that's when the release was going to happen.

But what we've heard since then, the Revolutionary Guard. These are the hardliners. They control the island. They have those ten sailors with them.

This morning, just a few hours ago, they said we're questioning them to found out if they were on an intelligence gathering mission. They were in our territorial waters, that they were acting unprofessionally and in a provocative manner for 40 minutes.

They said now, since then, the language has sort of escalated. The demand for an apology in the last hour, less than half an hour, what we've heard from the Iranian side is that he situation on this again, comes from the revolutionary guard, the hardliners, saying that the situation is being resolved and perhaps on the crucial issue of why those sailors were in what Iran considers its territorial waters. The Iranians are saying now that the navigational equipment on these two small boats the sailors were in was faulty.

So, possibly, this is the sort of language we should expect before release. But I think we should be cautious, not get ahead of ourselves. It does seem perhaps to be on track, but quite how long at this stage is not clear.

ROMANS: So, these were two Navy vessels, we are talking ten sailors. They were en route from Kuwait to Bahrain and is there any sense that the U.S. military, the U.S. Navy is doing anything in reaction to this? I mean, I know we have vessels in the area.

ROBERTSON: Sure. I mean, I think we can talk about reaction in terms of the language used. The language used publicly is that the boat possibly had a mechanical problem, possibly had a fuel issue. This is the de-escalatory, if you like, language. This is not the language that's going to inflame the Iranians, calling the Iranians provocative.

So, I think the posture in terms of rhetoric and very likely the posture in terms the Navy is taking at the moment militarily in the seas there, is one that is going to be, let's just hold our calm, let's play this game right and wait and see.

ROMANS: All right. Wait and see and again waiting any minutes for any new developments when these nine men and one woman will be released back to U.S. custody.

Thank you so much for that, Nic Robertson. And keep us posted if there's any changes.

BERMAN: All right. The other big news overnight, the State of the Union Address, the final State of the Union Address from President Obama. He urged Americans to turn away from what he called the fear and tribalism that have dominated the campaign and toward a more welcoming, optimistic vision for the country.

Senior White House correspondent Jim Acosta for the latest.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John and Christine, in his final State of the Union Address, President Obama called on the nation to reject the politics of the vision the president urged Congress to pass new gun control laws, tackle climate change and close the detention facility at Guantanamo. He also defended the Obama doctrine of seeking first before unilateral

military action, pointing to the normalization of relations with Cuba and the Iran nuclear deal. But there was no mention of Iran, though, Tuesday, who detained ten American sailors.

The president also took aim at the race for the White House and some veiled jabs at Donald Trump. He asked Americans to respect the differences of their fellow citizens including Muslims. Here's what he had to say.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: As frustration grows, there will be voices urging us to fall back into our respective tribes. The scapegoat fellow citizens who don't look like us or pray like us or vote like we do, or share the same backgrounds.

[04:05:05] We can't afford to go down that path. It won't deliver the economy we want. It will not produce the security we want. But most of all, it contradicts everything that makes us the envy of the world.

ACOSTA: And in one of the most emotional moments of the speech, the president called for a moon shot mission to cure cancer. It was a tribute to Vice President Biden whose son Beau died from cancer last year -- John and Christine.

(END VIDEOTAPE)

ROMANS: All right. Jim Acosta, thank you for that.

OK. Reaction to the State of the Union as been pouring overnight. Let's break it down, the speech and the response. CNN politics reporter Eric Bradner via Skype from Iowa, bright and early this morning from the cold state of Iowa, where something is going on in less than three weeks. I can't remember what it was.

Let's talk a little about the Republican reaction to the president's speech. I mean, first, this idea -- what I heard overnight from a lot of people was, look, they don't think the president elevated threat of radical Islam, terrorism the way he should have, that he was downplaying ISIS and sort of blunting what has been the World War III language that you've been hearing a little bit from the Republicans.

Listen to how the president characterized ISIS and the threat from that.

(BEGIN VIDEO CLIP)

OBAMA: Masses of fighters on the back of pickup trucks, twisted souls plotting in apartments or garages, they pose an enormous danger to civilians. They have to be stopped. But they do not threaten our national existence.

(END VIDEO CLIP)

ROMANS: How much does that rile up his critics?

BRADNER: A lot. I mean, that's what the conversation on Twitter was from the Republicans running to replace him, Jeb Bush, Marco Rubio, talking about tougher commander-in-chiefs. So, you know, they were talking about a lot of Republicans are making the same points.

President Obama is somebody who entered office determined not to leave his successor with another sort of intractable war in the Middle East, and that's the point he was making here, that everything can't be solved through mass use of force. And it's something that will frustrate a lot of Republicans and it will be the chief sort of reaction that you see from Republicans on the campaign trail today.

BERMAN: Eric, you mentioned those tweets. Let me give a dramatic reading of a few of those. Ted Cruz wrote, "Tonight's speech was less a state of a union and more of a state of denial." Jeb Bush wrote, "It appears Obama is still under the impression ISIS is the jayvee team. The next president must understand the enemy and threat." Marco Rubio writes, "America needs a real commander-in-chief and a president who will keep us safe."

So, as you and Christine correctly pointed out, that is some of the harshest Republican response to that one point that the president was making on ISIS. You see a heightened level of rhetoric there, a heightened level of rhetoric.

The president says that he regrets -- he doesn't just regret it. He regrets he didn't do more to make things more agreeable in Washington. Listen to what he says.

(BEGIN VIDEO CLIP)

OBAMA: It's one of the few regrets of my presidency that the rancor and suspicion between the parties has gotten worse instead of better. I have no doubt, a president with the gifts of Lincoln or Roosevelt might have a better bridge the divide. I guarantee, I'll keep trying to be better so long as I hold this office.

(END VIDEO CLIP)

BERMAN: Interesting to hear a president say, I could of, should of, wish I had done more.

BRADNER: It absolutely was. I mean, at one point in the speech, he had a little olive branch for Paul Ryan, the new speaker of the House. But this was an interesting bit of insight into Obama who in the past has not really gone quite this far in saying that he's made mistakes. He's made a lot of blame on Republicans and still did tonight. I mean, he's taking a lot of shots at Donald Trump, not by name.

But, yes, this is the candidate who ran and is a force of transformational change basically admitting tonight he didn't make any and trying to urge American voters to pick up what he wanted to do. He was also saying you can't just change candidates, people in office. You have to change political systems. So he's calling for some structural reforms, too.

ROMANS: Let's talk quickly about Nikki Haley, the governor of South Carolina. She gave the GOP response to the president's State of the Union. She talked about the GOP front runner, not by name, it was pretty clear she was calling out Donald Trump. Listen to what she says.

(BEGIN VIDEO CLIP)

GOV. NIKKI HALEY (R), SOUTH CAROLINA: During anxious times, it can be tempting to follow the siren call of the angriest voices.

[04:10:04] We must resist that temptation. No one who is willing to work hard, abide by our laws, and love our traditions should ever feel unwelcome in this country.

(END VIDEO CLIP)

ROMANS: John Berman claimed the establishment strikes back.

BERMAN: Strikes back.

ROMANS: How did that go over?

BRADNER: Wasn't that fascinating?

BERMAN: Yes.

BRADNER: That was I think the really turned off a lot of conservatives. People on the far right, on Twitter, the reaction was pretty harsh. Laura Ingraham, the conservative talk radio host, really letting Nikki Haley have it, sort of accusing her of trying to tamp down enthusiasm that a lot of conservatives see as good for the party.

But yes, I mean, this is a Republican senator -- a Republican governor of South Carolina bashing the Republican presidential front runner in her state. It might make the debate the Republican debate there later this week a little bit awkward, especially if Governor Haley is in the audience.

But, yes, it's fascinating to see. And it also offers a little insight into where the heads of Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan are at, because those are the two who decides who gives the Republican response.

ROMANS: Yes.

BERMAN: Very interesting to see Eric Bradner in Iowa. Of course, that Republican debate is in South Carolina on Thursday night.

Eric, great to see you. Thanks so much.

What about the Democratic side of the race? There was a lot going on there. New polls show Hillary Clinton could be in trouble not just in Iowa and New Hampshire, but nationally. How she is now striking back.

The new message, new CNN interview -- that's next.

(COMMERCIAL BREAK) [04:15:20] BERMAN: New this morning Hillary Clinton's lead nationally slipping. A brand-new poll out from "The New York Times" and CBS News finds that Clinton just has a 7-point lead of Bernie Sanders, just seven points. Look at what it was in December. It was 20 points in the same poll.

At a campaign event in Iowa, Clinton really went after Sanders, probably because of the slipping poll numbers on several fronts. And later, she told CNN, Alisyn Camerota of "NEW DAY", that her opponent Bernie Sanders is short on substance.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Senator Sanders has some very big ideas, but he hasn't yet told anybody how he would pay for them and he has promised that he would roll out his tax plan before the Iowa caucus on February 1st. Well, if you wait too long, nobody will have a chance to see them or analyze them. And so, I am very clear about what I would do and how I would pay for it.

(END VIDEO CLIP)

BERMAN: Chelsea Clinton made her first solo campaign appearance in years, stumping for her mother in New Hampshire. She is expected to join former President Bill Clinton at an event in Iowa this weekend.

ROMANS: All right. New signs this morning Donald Trump holds a commanding lead on the Republican side. Trump is at 36 percent in the "New York Times"/CBS poll, up one point since December. Ted Cruz still second, 17 points back.

But it's a different story in the state of Iowa, as CNN's Sarah Murray reports.

(BEGIN VIDEOTAPE)

SARA MURRAY, CNN POLITICS REPORTER: Good morning, Christine and John.

The battle between Ted Cruz and Donald Trump is turning into an all out brawl. Here in Iowa, the two are neck and neck in the polls. Donald Trump told the crowd last night, he's not too thrilled about it.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: PPP just came out 28 for Trump, 26 -- by the way, I hate to tell you, Iowa, this is the only place that I'm like doing let's say even. I'm not exactly thrilled. I go to New Hampshire, we have this massive lead. They're all playing for second place, supposedly. I hope that turns out to be right because I don't care who is in second place.

MURRAY: Now, campaigning here in Cedar Falls, Iowa, last night, Trump went after Cruz for his stance on ethanol and once again questioned whether Cruz could even be president because he was born in Canada. Ted Cruz says those attacks are only resonating with Democrats and questioned whether Trump was maybe a little too cozy with Democrats. SEN. TED CRUZ (R-TX), PRESIDENTIAL CANDIDATE: It starts to make you

think, gosh, why are Hillary's strongest supporters backing Donald Trump? You know the past couple of elections, we saw the Democrats thrilled that they got the nominee they wanted to run against in the general election. And it seems the Hillary folks are very eager to support Donald Trump and the attacks that are being tossed in my direction.

MURRAY: And, just yesterday, Cruz really ratcheted up his attacks, not only going after Trump on that citizenship question but also saying Trump embodies New York values and saying, in a head-to-head matchup against Hillary Clinton, Cruz would be far better off than Trump.

Back to you, Christine and John.

(END VIDEOTAPE)

ROMANS: All right. Sarah Murray, thank you for that.

Eighteen minutes past the hour.

A convicted killer from Wisconsin who inspired the Netflix series "Making A Murderer" is appealing his homicide conviction. Lawyers for Steven Avery claim one of the jurors bullied other jury members to convict their client. They are asking the judge to release him on bond. Avery is serving a life sentence for the rape and murder of a photographer Teresa Halbach.

BERMAN: The death sentence if Florida could be on shaky ground now that the U.S. Supreme Court ruled the process used to condemn inmate Timothy Lee Hurst was unconstitutional. The judges required the Sixth Amendment which requires a jury and not a judge to impose death. In Hurst case, the jury recommended death, but it was the judge who imposed the sentence. Legal challenges to other death penalty sentences in Florida is now expected.

Breaking overnight, the government of Michigan activated the National Guard to try to help deal with the lead contamination crisis in Flint's drink water. This is outrageous. If you haven't heard about this, look into it, because it is important, folks.

About 30 guard members will be manning fire station and distributing bottled water and filter, that will free up the Red Cross to deliver bottled water door to door. Flint's drinking water has been contaminated with led for two years. This was a choice the city made two years ago, the city decided to switch to a cheaper source that costs this mess.

ROMANS: And doctors and health experts have been warning about this for some time. The governor has apologized this happened. But it's pretty much the most glaring case I can ever remember covering of your government absolutely failing the people of that town. The children's drinking water laced with lead. That's something that will haunt that community forever.

BERMAN: Generations.

ROMANS: All right.

[04:20:00] Time for an early start on your money this morning, excuse me.

Stock futures are pointing higher and we are seeing strong gains in Europe and most of Asia. Oh my goodness, look at that. Those arrows are pointing in the right direction.

BERMAN: Wow.

ROMANS: The Dow posted its best gain on Tuesday. But it's still way up, obviously, this has been the big story right up, up slightly this morning after dipping below 30 bucks a barrel yesterday. Crude has plummeted more than 17 percent from the pick 18 months ago. That crash has analysts predicting even more doom and gloom.

Morgan Stanley warns crude could dive to $20 a barrel. Not to be outdone, Royal Bank of Scotland said, no, $16 is on the horizon.

And Standard Chartered doesn't think those dire predictions are dark enough. The British bank says oil prices could collapse to as low as $10 a barrel, a level we haven't seen since November 2001. That plunge caused gas prices to slip to $1.12 nationwide, compare that today the average of $1.95.

BERMAN: That is crazy.

ROMANS: It is really.

BERMAN: You start talking about $20 a barrel, $10 a barrel.

ROMANS: I know. It looks we could have a bounce in stock. We could have a bounce on stocks this morning. That's good news.

BERMAN: All right.

ROMANS: A positive, not terrible negative China number. That's what that's all about.

BERMAN: This morning, ISIS is claiming responsibility for a deadly terrorist attack. Tourists targeted, explosives going off at one of the most popular tourist hubs in the world. We are live with the details next.

(COMMERCIAL BREAK)

[04:25:20] BERMAN: New developments this morning: a suicide bomber who killed at least ten foreigners in central Istanbul was working for ISIS. That is according to Turkey's prime minister. At least eight of the dead are German. Turks authorities revealed the attacker entered that country through Syria. They say he was not on any watch list.

CNN's Arwa Damon following developments for us live in Istanbul. Arwa, good morning.

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning and here is what we also know at this stage, is that not only did that individual have links to ISIS with a member of ISIS, but that according to Turkish officials also only just recently crossed over from Syria into Turkey, seemingly deliberately trying to go after a soft target, target tourists.

This is not just an attack against Turkey. It's not just an attack that has impacted the psyche of this country. It's had reverberations well beyond with German officials, the delegation arriving in country right now. We expect them to be visiting the scene of where the attack took place and visiting some of those wounded in hospital.

Now another update, too -- according to the semi-official Anadolu news agency, there has been a massive countrywide sweep spanning several provinces in which 68 individuals were detained, all accused of having ties to ISIS. We do not know how this is linked to that Sultanahmet attack.

But amongst those 68 who were detained were also three Russian individuals. They were picked up in the southern touristic hub of Antalya. Again, we do not know exactly what sort of ties they may or may not have to ISIS.

And also another 16 individuals whom according to the Anadolu news agency are accused of trying to scout out possible target locations and for quite some time now, Turkey has been undergoing these types of massive sweeps, trying to round up individuals they accuse of having ties to various different tourist organizations. ISIS just being one amongst them.

But again, this just underscores how vulnerable the country is at this stage. The challenges that it faces when it comes to trying to secure that heavily porous border it shares with Syria, and just how potentially devastating these attacks can be, not just in Turkey, but as we were saying, beyond as well.

BERMAN: Arwa Damon for us in Istanbul, that's Hagia Sofia, one of the world's treasures behind Arwa, you can see how close this was the all tourist, really fascinating areas in that city. Arwa Damon, thanks so much.

ROMANS: All right. Twenty-seven minutes past the hour.

Breaking news this morning, Iran now demanding the U.S. apologize after Iran detains 10 American sailors for entering Iranian waters. We are live with brand-new details, next.

(COMMERCIAL BREAK)