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EARLY START WITH JOHN BERMAN AND ZORAIDA SAMBOLIN

The New Royal Baby; Celebrating the Newest Royal; Pope Francis in Brazil

Aired July 23, 2013 - 05:00   ET

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


MICHAELA PEREIRA, CNN ANCHOR: Plane problems. Passengers hospitalized after their jetliner lands nose first on a New York runway.

CHRISTINE ROMANS, CNN ANCHOR: Historic visit. The first Latin American Pope arriving in Brazil, greeted by protest, a bomb scare and a growing challenge there for the Catholic Church.

PEREIRA: First, royal baby fever goes global. Our team coverage on Will and Kate's newborn baby boy. What's his name? When will we see him? We are live. Hoping to find answers to all of those questions.

ROMANS: Oh, they had a baby?

PEREIRA: Did you miss something?

ROMANS: Who knew?

PEREIRA: We had to start bets by wearing red and blue because we didn't know. No, we knew. A little baby boy.

ROMANS: It's a boy.

Good morning, welcome to EARLY START. I'm Christine Romans.

PEREIRA: And I'm Michaela Pereira. It is Tuesday, the 23rd of July, and it is 5:00 a.m. in the East.

ROMANS: Let's begin this morning with that royal -- addition to the royal family. Revealed the traditional way on an easel outside Buckingham Palace and over the world's airwaves.

A son for the Duke and Duchess of Cambridge, William and Catherine. We don't know his name yet. We're still waiting to see just when that might be announced.

Max Foster live outside St. Mary's Hospital for us this morning.

And the wait is over and the wait begins, again.

MAX FOSTER, CNN ROYAL CORRESPONDENT: Well, exactly. It's when they're going to come out on the doorstep. That's the big moment. Actually there might be a moment before that when William comes out and speaks to us. But that's unconfirmed so far. There is a plan in place if he decides to do that. But when do they come out? Well, the standard procedure is you'd have some check-ups and then you'd be discharged, the mother and baby. And there are check-ups currently taking place. Marcus Setchell, the Queen's gynecologist, is inside making the medical assessment. And then if they are ready to go and they've had that discussion, then they may well go. They wouldn't want to stay in here longer than they need to.

It may happen in the next couple of hours. But the palace aides I've been speaking to haven't had a chance to speak to the couple yet. So they're not sure. They can't confirm that it's happening today. Certainly, the sense here is that something is going to happen in the coming hours.

ROMANS: It's so interesting because they have to weigh, you know, the world wants to know about the baby, the name of the baby, wants to see the baby. But at the same time, this is a new couple with their brand-new bundle of joy. I mean, every couple with a new baby they kind of want their own time with their child, too, especially at the very beginning.

FOSTER: Yes, and we got a sense of that in the beginning when there was this four-hour delay between the birth and the announcement, which is longer than we were expecting. And that was essentially bonding time for just the three of them spending time together. Getting to know each other. We're told that that's why there had that gap in the announcement.

And yes, exactly. So today is all about, you know, Kate and the baby, how well are they. Are they well enough to face this barrage of cameras as well? It's going to be a huge sort of fire bomb of flashbulbs as they come out here later on. And they want to feel comfortable for that. But at the same time, they don't want to inflict this sort of pressure on the hospital, I don't think, for too long.

ROMANS: Yes.

FOSTER: This is causing a bit of commotion.

ROMANS: Yes. And, you know, Catherine just delivered a baby. So she deserves a little bit of rest, too, even though we do want to hear about all of this.

OK. Thanks, Max Foster. Talk to you very soon.

PEREIRA: Well, news of the birth brought excitement around the nation, around the world, really, and especially in the UK.

Erin McLaughlin is live outside of Buckingham Palace this morning.

I'm curious what the feeling is there. No longer one of anxiousness and anticipation, but anticipation of another sort.

ERIN MCLAUGHLIN, CNN CORRESPONDENT: That's right, Michaela. Well, there's a small crowd right now outside Buckingham Palace. They're here to see that royal baby notice still posted on the easels in the gates of the palace forecourt.

But let me tell you, there was a party here last night. People were dancing. They were singing. They were toasting the future king. Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's a baby. Look, the baby is born. Everyone thought it was a girl. And it's a boy. I just -- it's a girl and ran here. It's so exciting.

UNIDENTIFIED MALE: Cheers.

UNIDENTIFIED FEMALE: Cheers.

UNIDENTIFIED FEMALE: We have tiaras just in case and crowns just in case as well.

UNIDENTIFIED FEMALE: It's been a long day.

(CROSSTALK)

UNIDENTIFIED FEMALE: And it's a boy.

UNIDENTIFIED FEMALE: I know. I was expecting a girl. But I did want a boy.

(END VIDEO CLIP)

MCLAUGHLIN: Well, the happy news today splashed across newspaper headlines. Take a look at "The Sun," which is the largest distributed tabloid here in Britain. They are having a bit of fun spelling their name S-O-N instead of S-U-N. And then of course you have the royal baby notice with the Buckingham Palace seal.

Lots still to look forward to. People here anxious for that royal baby photo-op and of course the great name debates continues. Will the baby be named James or George? We'll just have to wait and see. People here pretty excited.

PEREIRA: Now I wonder, it went from the great Kate wait to maybe the great name debate hash tag on Twitter. Do you think that might develop?

I'm curious about the background. It seems very calm behind you. Have the crowds essentially dispersed? Are people carrying about their regular day now?

MCLAUGHLIN: Well, people have stopped by as I mentioned to see that royal baby notice. We are expecting in the coming hours the Changing of the Guard, which is always a big tourist attraction. People still pretty excited and interested in the story. And as I said, all eyes on the Lindo Wing of St. Mary's Hospital for that baby photo-op.

PEREIRA: Yes. We're anxious to hear if Prince William will speak or not. All right, thank you very much for that. We appreciate it, Erin.

Coming up on "NEW DAY" Kate Bolduan is live in London this morning. She'll have all the very latest on the royal baby.

ROMANS: All right. Another big story we're following this morning. The investigation into a scary rough landing. The nose gear of a Southwest Airlines jet collapsing during touchdown at New York's LaGuardia Airport. Ten people injured. Some taken to the hospital for observation. None of the injuries said to be serious.

One hundred fifty people were on board Southwest Flight 345 out of Nashville. Some described a bang and a bounce as the plane skidded nose first along the ground.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The worst part was when the doors weren't being open and the smoke was coming in. And you just didn't --

UNIDENTIFIED FEMALE: Can't breathe.

UNIDENTIFIED MALE: You just didn't really know how long that was going to -- that was going to take. And clearly, they wanted to wait for the rescue teams to come and see if there was fire. But that was -- that was the anxious moment when people were about to lose it. But nobody lost it. Everybody did a good job.

(END VIDEO CLIP)

ROMANS: Federal investigators say the pilots on the 737 didn't report any problems before the landing.

PEREIRA: A manhunt under way in Iraq for hundreds of al Qaeda militants who escaped from the Abu Ghraib prison in a violent breakout. Authorities say suicide bombers drove cars packed with explosives into the prison gates while gunmen attacked guards with mortar fire and rocket propelled grenade. Between 500 and 1,000 prisoners are said to have fled that prison.

ROMANS: More than two years after the conflict began the U.S. now set to begin arming the rebels in Syria. An official tells CNN chief White House correspondent Jessica Yellin President Obama is now in a position to move forward with a plan after resolving concerns on Congress. One of the apparent issues keeping weapons from getting to extremists. It's not clear when the arms delivery might begin or just exactly what kind of weapons the U.S. will provide.

PEREIRA: In Egypt, the family of ousted president, Mohamed Morsi, lashing out against the military commander that forced Morsi out, calling his detention a kidnapping and a crime. They are vowing to take legal action in local and international courts possibly approaching the U.N. and the International Criminal Court. Morsi and some of his top Muslim Brotherhood aides have been held at an undisclosed location since he was ousted July 3rd. His son says he doesn't know if Morsi is alive or dead. ROMANS: NSA leaker Edward Snowden could leave the Moscow airport this week where he's been holed up now for the past month. His attorney says Snowden is pretty close to getting a certificate from the Russian government showing he applied for asylum. That application could take months to process. In the meantime, he'll be allowed to pass through customs. It's too risky for Snowden to travel to Latin American countries offering asylum because U.S. friendly nations refused to let him fly over their airspace.

PEREIRA: Some areas not normally accustomed to bad, bad weather like this, at least flooding, Arizona. Severe flooding there. Storms moving across the state that led forecasters to issue flash flood watches. Heavy downpours in the Phoenix area turned roads into rivers, washing away cars, leaving many drivers in desperate need of rescue.

And in Vegas, people there facing the threat of more storms and flash floods in the area. A warning from the National Weather Service comes in the heels of violent thunderstorms this past weekend, bringing down trees, power lines and causing severe flooding.

ROMANS: All right. Indra Petersons is first watching the heat wave, now watching forecast for us this morning.

What do you got for us now, Indra? Bring it on.

INDRA PETERSONS, AMS METEOROLOGIST: Yes, good. Right now you can't complain about rain. And we've complained about rain for so long now. It's in the forecast. At least it is not hot.

First I want to take you of course to the southwest. We were just talking about all of that flooding. Yes, we're still talking about monsoonal moisture. It's just that time of year. This is typically what happens this time of year. You start to pull in all these heavy thunderstorms towards the afternoon thanks to all that moisture pulling out of the Gulf.

So yes, the flash flood watches will remain in that area and that's something, again, very typical as we go through these summer months, at least the second half of it. So from monsoonal moisture to the big question, what are we expecting in the Midwest up to the northeast. Well, more rain. That is a good thing. Relief from the heat that we saw last week. That deadly heat wave.

Where we're going to see the more severe storms is going to be right along those cold fronts so really the better chances for those heavier thunderstorms are going to be stretching today from Kansas, pretty much all the way in through Kentucky. So those are going to be the heavier thunderstorms, the larger hail, some stronger winds.

But really, as long as that front is there, we're going to pulling in all this moisture out of the Gulf. So coming all the way from the south, all the way up to the north. So really, a lot of us today under the threat for thunderstorms. Nothing necessarily major. One to two inches of rain in a lot of places. Well, we've had plenty of rain. Maybe too much rain. I mean, anywhere from New York to D.C., look at these numbers for June and July. I've got five to seven inches above normal. So can't say that we necessarily need it. But hey, never too bad to have too much rain as long as you don't have that flooding threat.

We're looking at one to two inches in the south as well. The same thing there we're looking at a good anywhere from seven to eight inches above average. Of course that concern is a lot of rain and slow moving storms that we could see today. There will even be the flooding threat here in the northeast as well. So we'll watch for that.

ROMANS: All right. Indra Petersons. Thanks, Indra.

All right. Coming up this morning, massive crowds greeting the Pope in Brazil. Why this trip could end up defining his papacy?

PEREIRA: And baseball's doping scandal. The Brewers' Ryan Braun suspended for the season. Is he just the first to fall?

(COMMERCIAL BREAK)

ROMANS: All right. Rain may hamper a quick rescue in China. China's state media saying at least 89 people have been killed. Northwest China trying to recover from a powerful earthquake and a series of aftershocks. State media reports the death toll is now at 89. Another five people are missing since 600 others were injured. The tremor caused roofs to collapse. They cut telecommunication lines and damaged a major highway.

PEREIRA: Pope Francis in Brazil this morning. It's his first time back in South America since he was named the leader of the world's Catholic Church. This trip, however, not without controversy. A small explosive device was found this weekend near a shrine the pontiff will visit later this week. He's also facing growing discontent there within the Catholic Church.

Miguel Marquez is in Rio de Janeiro.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): This morning, Pope Francis off to a low-key start on his biggest trip yet. As his plane landed, everything here stopped. Then he emerged.

His ride from the airport, a silver hatchback sent the unmistakable message this is a different Pope. He drove with the windows down. When it came to a stop, he was swarmed by pilgrims.

This trip is important for the church, she says, because it will bring all countries together and make for a strong, emotional experience.

And then the moment so many have waited for. The first public appearance by the Pope, a quick spin around downtown Rio. (On camera): This is what it sounds like. This is what it looks like. This is what it feels like for the first Latin American Pope to touch ground and to be seen in a Latin American country.

(Voice-over): There were some protests.

UNIDENTIFIED MALE: We don't believe the government should spend public money in covering the event and in the security of the Pope.

MARQUEZ: Protesters even tear gassed at Rio's government palace. But excitement over this Pope's visit hard to overcome. A good start for a man on a mission to reinvigorate the church.

Miguel Marquez, CNN, Rio de Janeiro.

(END VIDEOTAPE)

ROMANS: All right, back in this country. Disciplinary hearing today for a Massachusetts police photographer who leaked photos of Boston bombing suspect Dzhokhar Tsarnaev.

Sgt. Sean Murphy gave those photographs to a magazine showing the moments just before Tsarnaev surrendered. He said he did it to protest a "Rolling Stone" cover. A cover of that magazine that many say glorified the bombing suspect.

A panel of three officers will decide if Murphy will face suspension or can remain on duty as the investigation continues.

PEREIRA: A Massachusetts grand jury could deliver a murder indictment any day now against former NFL star Aaron Hernandez. Hernandez is accused in the shooting death of Odin Lloyd. A court appearance from one of Hernandez's alleged accomplices, Ernest Wallace, was postponed until Friday.

Hernandez meantime is due back in court tomorrow. He has pleaded not guilty and is being held without bail.

ROMANS: Murder and kidnapping charges for a registered sex offender accused of killing three women in suburban Cleveland. Michael Madison did not enter a plea during his court appearance on Monday. Police found three decomposed bodies wrapped in plastic in an east Cleveland neighborhood last week. One has been identified. It may take days to figure out who the other two women are.

PEREIRA: A doctor will be at an Omaha court today accused of the revenge killings of four people, including an 11-year-old boy. Dr. Anthony Garcia was picked up last week in Illinois. Police say he killed a former professor and his wife and another professor's 11- year-old son and their house cleaner.

The two professors were apparently involved in firing Garcia from Creighton University more than a decade ago.

ROMANS: O.J. Simpson could get some big legal news this week. A Nevada judge is set to rule any day now whether the former football star and actor should get another trial on his 2008 kidnapping and robbery conviction. And on Thursday Simpson will go before a parole board. But it is unlikely he will be let out of prison because of the way his sentences are structured.

Simpson currently is serving a nine to 33-year term for robbing two memorabilia dealers at a Las Vegas hotel.

PEREIRA: The first domino falling in Major League Baseball's latest investigation of performance-enhancing drugs. Former National League MVP Rick Braun suspended for the rest of the season. That is 65 games. The Milwaukee Brewers star has accepted the punishment and will not appeal.

More player suspensions are expected in the days to come. Speculation remains that the Yankees' Alex Rodriguez could be at the top of that list.

ROMANS: A surprising Good Samaritan at a Florida car crash. George Zimmerman, just days after a jury acquitted him in the shooting death of Trayvon Martin, police in Seminole County near Orlando say Zimmerman stopped to help a family stuck in an SUV that had overturned and was beginning to smoke.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Do they -- does the person need medical attention?

UNIDENTIFIED MALE: I don't know. They're getting them out of the car right now. They got kids and everything in the car.

UNIDENTIFIED FEMALE: I don't know if it's on fire. There's other people that are helping the people.

(END VIDEO CLIP)

ROMANS: Zimmerman and another man got the two adults and two kids out of the car before police arrived. No injuries are reported. And he left after talking to a sheriff's deputy.

PEREIRA: Quite a turn of events.

ROMANS: All right. Coming up, bad news for Netflix and Apple. What's causing their stocks to tumble?

PEREIRA: And we want to show you a live look at St. Mary's Hospital in London. Quite a scene and people eagerly -- and the press, of course, eagerly awaiting the introduction at least of the new baby or maybe even an announcement from Prince William himself. The cameras are trained on that door at St. Mary's.

We'll be back with more coverage.

(COMMERCIAL BREAK)

PEREIRA: Good morning. And welcome back to EARLY START. Michaela Pereira and Christine Romans here, looking at the Empire State Building. Quite a recognizable --

(CROSSTALK)

ROMANS: Whoa.

PEREIRA: Lighting up with some lightning back there.

Indra, did you call for that to happen? That was amazing.

(LAUGHTER)

It's -- you sent a queue out and it just happened right on -- right on the mark. Beautiful sky this morning already. We'll talk to Indra a little bit about the weather, coming up.

ROMANS: So until we talk to Indra, let's talk about money. It's money time.

Welcome back. Stock futures higher this morning. On Monday, the S&P, another record close. 23rd of the year. The S&P, the Dow, the Nasdaq, all finished with gains for the day. And those gains might continue. This is according to S&P's Sam Stovall. He says the string of new closing highs we've seen is less than a third of the average number of new highs for all bull markets. So history may suggest there could be more on the way.

The main event on Wall Street today, Apple learning it will report after the close, Wall Street is expecting a miss. Apple did not unveil any major products in the last three months. IPhone sales are slowing and customers are choosing cheaper options like iPad Minis and older iPhones that don't bring in as much profits.

Apple shares are down 20 percent this year. And that says the broader market is hitting record highs, so Apple has not followed through with the rest of this big stock market rally.

Netflix shares took a beating after the bell yesterday because the original programming didn't quite live up to all the hype. The company brought the popular series "Arrested Development" back to life last quarter. The release did helped bring in 630,000 new Netflix subscribers. It's a big jump. But you know what? It's not as big as Wall Street was expecting so the stock got hammered.

All right. The 2013 spring selling season in real estate was the hottest since 2004. We are not talking about weather. Zillow says its home value index rose to $161,100 as of the second quarter, up 5.8 percent year-over-year. It was the largest annual gain in home value since August 2006.

Zillow's math of home value appreciation shows five areas where Zillow expects home values to rise, take a look everyone, by 10 percent or more over the next year. That's where Zillow says, you will see 10 percent or more home value rises over the next year before it's focused. Some of those areas saw the biggest, biggest declines in the housing bubble when it popped.

PEREIRA: And a lot of people felt that.

ROMANS: Oh yes.

PEREIRA: Oh my.

ROMANS: Oh yes.

PEREIRA: So many families changed by that.

All right. Christine, we're going to take a short break. Coming up, Michael Jackson's mother on the stand in the king of pop's wrongful death suit against concert giant AEG. What brought out tears during her testimony, coming up.

(COMMERCIAL BREAK)