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EARLY START WITH JOHN BERMAN AND ZORAIDA SAMBOLIN

Health Officials Investigate Cyclospora Outbreak; Bradley Manning Verdict: Guilty of Espionage, Not Aiding Enemy; Is Congress Getting Anything Done?; Weiner: Out Isn't The Way We Roll in NYC

Aired July 31, 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: A stomach parasite infecting hundreds in more than a dozen states. Now, a popular produce item linked to the outbreak.

JOHN BERMAN, CNN ANCHOR: Whistle-blower or traitor. Today, sentencing begins for the American soldier now convicted of spying and passing secret government documents to WikiLeaks.

PEREIRA: Check out a police brawl. Officers attacked, when a suspect grabs one of their guns. And it's all caught in camera.

BERMAN: Wow.

Good morning, everyone. Welcome to EARLY START. Great to see you this morning. I'm John Berman.

PEREIRA: And I'm Michaela Pereira. It's Wednesday, the final day of July. Where has the month of July gone?

BERMAN: Oh, my gosh, grab on to July. Just one more day to go.

PEREIRA: One more day. It is 5:00 in the East.

BERMAN: We're going to begin with something that may turn your stomach a little bit. It's the outbreak of a rare parasite that's leaving many Americans sick. Cyclospora is known to cause intestinal problems, and health authorities are pinpointing now pre-washed lettuce as the possible cause. Right now, there are 375 cases of Cyclospora infection nationwide. In 15 states, from New York to Texas, in North, all the way in Minnesota.

Officials in Iowa say that 80 percent of those infected had eaten this bagged salad mix. Now, it's not clear where the salad mix was sold or under what brand name. This is what they're investigating.

Coming up on "NEW DAY," we'll have much more on the outbreak from Dr. Sanjay Gupta, including the latest into the investigation into the contaminated, possibly contaminated lettuce.

PEREIRA: That's a story you're going to want to follow.

Also to this now -- a verdict, his supporters call this historic, the acquittal of Army Private Bradley Manning on the most serious charge against him, after turning over a trove of government documents to WikiLeaks but he was found guilty of espionage. And as the sentencing phase of the trial begins today, Manning could still go to prison for a very long time.

Here's Chris Lawrence.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Private First Class Bradley Manning snapped to attention in full dress blues, likely one of his last acts as an American soldier. He stared straight ahead as the judge found him not guilty of aiding the enemy but smiled slightly as the hearing adjourned.

Manning was convicted on six counts of espionage, as well as stealing video of U.S. military air strikes, classified State Department cables and detainee records from Guantanamo Bay, which could put him in prison for 136 years.

Prosecutors could have accepted Manning's guilty pleas to lesser charges in February, crimes which carried up to 20 years in prison. But the government pushed ahead on the more serious aiding the enemy charge. And critics say it never proved there was any real damage done to national security, beyond the embarrassment of State Department officials when their cables went public.

BEN WIZNER, ACLU: I don't think there's been any evidence put forward that either Bradley Manning's leaks or more recently, Edward Snowden's leaks have put people at risk, have harmed people, have led to death.

LAWRENCE: The ACLU Ben Wizner says a conviction on aiding the enemy would have meant anyone who shares information with the media could be labeled a traitor if the information is published and the potential enemy could read it.

WIZNER: If the government equates leaks to the press with treason, in a way that could chill or endanger investigative journalists.

LAWRENCE: Manning's acquittal on that charge means no appeal and thus no further examination of what the government considers intent to aid the enemy.

EIGENE FIDELL, MILITARY LEGAL ANALYST: Had there been an conviction on that, we'd have learned a lot more about what Article 104 of the Uniform Code of Military Justice requires. We're not going know that. It's going to continue to linger as an area of potential security.

LAWRENCE (on camera): On Wednesday, prosecutors of Manning's defense team will argue over what is an appropriate sentence. The judge could decide to let some of these charges run concurrently or string them out. She will have to come up with a specific number, the time and the years, that Manning will serve.

Chris Lawrence, CNN, Fort Meade, Maryland.

(END VIDEOTAPE)

BERMAN: About four minutes after the hour right now.

They have been locked in a battle for months now with Congress set to head home for a summer recess. President Obama is telling lawmakers that it's time to make a deal. Speaking in Chattanooga, the president they can reach a grand bargain to fix the federal budget.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Here's the bottom line: I'm willing to work with Republicans on reforming our corporate tax code, as long as we use the money from transitioning from a simple tax system for a significant investment in creating middle class jobs. That's the deal.

(END VIDEO CLIP)

BERMAN: Not so fast, says Republican leadership. Spokesman for House Speaker John Boehner rejected the proposal saying it will hurt small businesses and families.

If it seems to you that this budget fight is more of the same in Washington, you're not wrong. It doesn't seem like much is getting done there now, does it?

Here's Dana Bash.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT (voice-over): Let's start with the positive, a recent burst of bipartisanship, a deal to make sure many student loan rates don't double, a rare meeting of all senators that led to confirmation of several Obama nominees.

SEN. BOB CORKER (R), TENNESSEE: The Senate certainly has functioned better over the last six weeks than it has for sometime.

BASH: Perhaps, but elementary civics bill taught us that a bill can't be law without the Senate and House agreeing, and both leave Friday through September, with a lot left undone.

SEN. JON TESTER (D), MONTANA: The eventually reality is real. I don't know who the 9 percent are that think that we're working well.

BASH: Still unfinished the farm bill, governing from farming to food stamps. Immigration reform, it passed the Senate, but the House is developing its own plans, likely with no path to citizenship for illegal immigrants. And again, Congress is way behind on its basic function, funding the government, which runs out of money September 30th or the government shuts down.

Conservatives like Ted Cruz say that may be necessary if they can't cut money for Obamacare.

SEN. TED CRUZ (R), TEXAS: Under no circumstances will I support a continuing resolution that funds even one penny of Obamacare.

BASH: Some Republicans oppose that tactic.

CORKER: Yes, I just think that's a very self-defeating effort.

BASH: Bob Corker will spend august continuing bipartisan talks with the White House on a spending plan.

CORKER: During August recess, most of us work harder than we do here.

BASH: Also looming, the debt ceiling. The U.S. risks defaults on loans as soon as Labor Day.

TESTER: We could put the economy back into a tailspin and it's absolutely not the thing we want to do in Washington, D.C.

BASH: Dana Bash, CNN, Capitol Hill.

(END VIDEOTAPE)

PEREIRA: President Obama's decision to delay one part of the health care overhaul one portion could be costly. Most businesses provide health care coverage for their employees, will rack up a $12 billion price tag. And it will leave 1 million Americans uninsured. The CBO says that will mean the government will have to pay out more in subsidies and collect less in penalties.

BERMAN: Anthony Weiner still defiant in the face of his latest sexting revelations. In a video message posted on his campaign Web site, Weiner says that dropping out of mayor's race isn't in his New York City DNA. Take a look at this.

(BEGIN VIDEO CLIP)

ANTHONY WEINER (D), NEW YORK CITY MAYORAL CANDIDATE: I know that there are newspaper editors and other politicians that say, boy, I wish that guy Weiner would quit. They don't know New York. Certainly they don't know me. Quit isn't the way we roll in New York City.

(END VIDEO CLIP)

BERMAN: Meantime, a top Weiner campaign aide is apologizing for an expletive-filled rant. We're talking scathing stuff about a former intern who wrote an unflattering article about her experience. That article appeared in the "New York Daily News."

PEREIRA: Three former top officials at Penn State heading to trial over the alleged cover-up of the Jerry Sandusky sex abuse scandal. A judge said prosecutors have shown enough evidence that move forward against Graham Spanier, vice president Gary Schultz and athletic director Tim Curley. They are accused of lying about what they knew of the allegations that Sandusky was molesting young boys.

BERMAN: Two congressional committees today will take a question of misconduct by the TSA. A new government watchdog report says accusations of wrongdoing by airport security jumped by 27 percent in the last two years, with employees who snuck items past scanners or were caught napping on the job, only given light penalties. PEREIRA: Some changes in the San Francisco Airport in the wake of the deadly Asiana Airlines crash. The FAA says it will not allow foreign flights to land side by side other planes anymore. Officials are also advising foreign carriers to use GPS system when landing in San Francisco, citing an increase in aborted landings by foreign planes using visual approaches.

BERMAN: All right. So, this sort of seems like a regular thing in the Tampa area these days -- a water spout churning in the bay between Tampa and St. Petersburg.

PEREIRA: Oh, my.

BERMAN: That might cause you to think twice about going on the water there. This one spurred a line of severe weather that rolled into the area. It did disappear before it reached a major bridge, but the storms caused some minor damage on land.

PEREIRA: Well, let's take a look at that storm, Indra Petersons take keeping an eye on it, and the other things that are in the forecast for today.

INDRA PETERSONS, AMS METEOROLOGIST : Yes, and you guys pretty much nailed it. I mean, it's pretty common in Florida. Yes, there you go, John. I'll give you credit.

PEREIRA: Well done.

PETERSONS: It doesn't take much. I mean, the conditions are moist, they're pretty much ripe to have a thunderstorm turning into a small water spout or tornado very quickly. You can actually tell here in the wider look, all it took is one cell quickly to form in that water spout. And that's what they saw yesterday evening, about 6:00 to 9:00, is what this radar says here.

I want to switch to other severe weather. Flossie, just a heads up, is now gone. Here's the upside. It did not bring as much rain as expected. Now, of course, the geography is different, but where the actual stations are. Right now, we saw anywhere from two to five inches of rain, definitely a lot lower than 10 to 15 inches that they feared in the area.

However, fear not over take a look, this is actually tropical storm Gil. I wanted to overlay its path over where Flossie formed. You can actually tell in the next 24 hours, Gil is supposed to turn into a hurricane and look at the path it's taking going exact same -- literally almost identical path that Flossie took. We're going to be monitoring that very closely. It's like he's formed right behind it, a 60 percent chance of forming as well. So, a lot going on.

Into the Southeast today, we're talking about that warm sector producing some thunderstorms there. So, one to two inches of rain -- yes, your dry spell is over. Sorry about that guys. Otherwise, into the Northeast, we're watching a front moving very quickly.

So, pretty much from the Midwest starting today and right into the Northeast by Thursday, we'll be talking about showers especially along that front. So, look for half an inch to an inch of rain in that area.

So, enjoy our dry spell. New York has another day. But really, it's OK.

BERMAN: We'll take it while it lasts. All right. Indra, thank you so much.

PEREIRA: Really, some incredible pictures to show you out of Oregon this morning.

I want to show you the lobby of city hall in Beaverton, not far, outside of Portland. That's an 18-year-old pacing around. Then he kind of loses it and goes crazy, with a police officer punching, wrestling and then actually dangerously removing the sergeant's gun from his holster, firing off a shot.

It turns out he was high on mushrooms. Nothing could stop him. He even broke through a pair of handcuffs.

(BEGIN VIDEO CLIP)

JIM SHUMWAY, DETECTIVE, BEAVERTON POLICE: If you don't feel pain and you're experiencing almost superhuman strength because of whatever it is that you're on, he somehow broke him. During this struggle, he was tased seven times and it didn't have an effect on him.

(END VIDEO CLIP)

PEREIRA: That young man was apparently hallucinating, thinking he had seen a bomb being planted on a commuter train. He is now in jail.

One of the officers was suffering a shoulder injury. It was pretty amazing that nobody else got hurt.

BERMAN: Can you believe it, he was tased seven times and didn't feel it?

PEREIRA: Yes. And the fact that he broke through those handcuffs, too. It's all very shocking.

BERMAN: Really strange, dangerous. I'm glad those officers are OK.

Coming up, chaos in Egypt. New protests filling the streets there as the first outsider is finally making sure the country's deposed president is doing OK.

PEREIRA: Also, new information about what may have caused that deadly train crash in Spain. We'll be back.

(COMMERCIAL BREAK)

BERMAN: Welcome back, everyone.

So far, so good in the new round of Mideast peace talks. Secretary of State John Kerry said he's optimistic after two days of meetings with Israeli and Palestinian negotiators. Kerry called the renewed talks the first in three years a new moment of possibility. Negotiations on the core issues will begin in the next two weeks either in Israel or the West Bank.

PEREIRA: To Egypt now, where the talk is also on diplomacy. With Morsi supporters in the streets again, tensions remaining high, a top European diplomat visited the country, meeting with all side, including the deposed president.

Reza Sayah is in Cairo this morning for us.

Good morning, Reza.

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Good morning, Michaela. We're seeing more and more international figures, the international community getting involved in this conflict here in Egypt to help break the deadlock between the military-backed interim government and the Muslim Brotherhood, and supporters of the ousted President Mohamed Morsy.

Catherine Ashton, the E.U. foreign policy chief, here yesterday meeting with both sides. Now, President Obama calling on two U.S. senators to come to Egypt: U.S. Senators Lindsey Graham and John McCain could come to Egypt as early as next week. When they get here, look for them to push this military-backed interim government, to rein in what they call excessive use of force against protesters, look for them to push to reach a truce between the two sides and move forward in establishing a democratically elected government.

It's a tall order for Senators Graham and McCain, but they're going to give it a shot next week, Michaela.

PEREIRA: Given that Catherine Ashton had a meeting with Mr. Morsi, is there any indication where he was actually located. We know that she was even kept sort of in the dark about where he was.

SAYAH: Yes, she was taken there in a military helicopter. And all we know based on information from Western diplomats and other sources, that he's being kept in a military installation.

Obviously, the military here, the most powerful institution in the country, they have hundreds of facilities throughout the country. He could be anywhere in those facilities -- Michaela.

PEREIRA: All right. Reza Sayah, with the latest from Egypt -- thank you so much for that.

BERMAN: We're learning more this morning about the actions of the driver in that deadly train crash in northern Spain. Court documents reveal that the driver Francisco Garzon was talking on the phone and looking the a document when the train hit a tight curve at really high speed. Seventy-nine people died in that crash. Data recorders show that the train was going as fast as 119 miles an hour just seconds before it derailed there.

Garzon has been provisionally charged with 117 counts of negligent homicide.

PEREIRA: Yet another twist in the story. The North Korean ship that was stopped in Panama with weapons found on board, Panamanian officials said they've discovered jet engines from MiG fighters buried under those sacks of brown sugar, along with vehicles that looked like missile control. That ship was en route from Cuba to North Korea when it was stopped earlier this month.

BERMAN: That's definitely not sugar.

PEREIRA: No.

BERMAN: Protests and boycotts mounting against Russia's new anti-gay laws. There are new questions this morning over how this uproar might impact the upcoming Olympics. The IOC insists it will not tolerate any discrimination at the Games, set for Sochi on the Black Sea this February.

But a top Russian politician and co-sponsor of the legislation says the law will not be suspended and anyone who attends that games would be subject to the provisions, making it a crime to, quote, "promote homosexuality."

A lot of athletes, a lot of gay athletes considering what to do about this. The most that I've been reading about say they do intend to go to the Games, they say the best protests is to go and win.

PEREIRA: It's interesting how these Olympic Games end up being often times being a place of protests.

BERMAN: It's been that way for a long time.

PEREIRA: For many, many years.

All right. We know the frustrations of going through airport security, all too well, don't we? Apparently, there's something that you can do to speed through faster if you're willing to pay. The TSA is expanding the pre-check program, so more people can take part.

Up until, just frequent flyers, with some airlines, and trusted travelers were able to use the pre-check program for free. But starting later this year, travelers who agreed to a background check and finger printing can become five-year members of TSA Pre for 85 bucks. Members go through separate, shorter security lines. They get to keep shoes, belt and jacket on, computers, liquid, gels, aerosols, all can stay in the bag.

TSA Pre enrollment centers are scheduled to open in the fall at Washington's Dulles Airport and the Indianapolis airport. Or you can apply online. The TSA wants to enroll 25 percent of the flying public by the end of the year. So, perhaps this will mean fewer of us will be standing in those slower lines of security.

BERMAN: I ended up on one of these Pre list, and I got to tell you -- you soar through these lines.

PEREIRA: Are you sure that's the list you ended up on?

BERMAN: No, I was traveling so much, they put me on one of these lists and you just go through.

PEREIRA: You go through quickly.

BERMAN: Oh my God. You want to travel extra just because you go through the lines so fast, like I go somewhere. Yes, that's the only list I'm on.

PEREIRA: Are you sure?

BERMAN: Coming up, good news for homeowners, home prices on the rise. How high they are soaring? That's coming up next.

(COMMERCIAL BREAK)

PEREIRA: Good morning, New York City. I went over that bridge yesterday for the first time, very exciting. The George Washington Bridge. What a beautiful sunrise.

BERMAN: And you came back in one piece. We're so happy to have you --

PEREIRA: I know.

BERMAN: To New Jersey and back again.

(LAUGHTER)

BERMAN: Welcome back to EARLY START, everyone.

It is "Money Time". And New Jersey's own, Christine Romans, with everything you need.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I know. I'm an adopted New Jersey girl. That's right.

Welcome back, you guys. In "Money Time" this morning, look, the future is moving higher this morning. But stocks basically is at the beginning of this week is hitting the pause button after five weeks of gains. You got earnings to start the week. The jobs report at the end of the week, and the Fed meeting in the middle.

So, a lot to consider. Stocks up 19 percent for the year, and the Federal Reserve meeting today. Will there be any sign of tapering the Fed's $85 billion a month bond-buying program. That's all what we want to know. Fed Chairman Ben Bernanke has said the central bank would slow that program you guys later this year and end it in mid- 2004.

Now, we're telling you about all this data we're going to get. GDP at 8:30 Eastern Time this morning, how was the U.S. economy growing in the first quarter? According to CNN Money, eh, not very much, 1.2 percent. That's less than the 1.8 percent gain at the start of the year. We really you guys want to see jobs growth will over 2 percent. And it's interesting because the president speaking yesterday on the context of creating jobs, really repositioning a lot of his -- a lot of his proposals we've already heard. But fifth economic speech in seven days, I think that shows you how concerned everyone is in Washington about getting jobs growing when you got the economy growing at just 1.2 percent.

Now, one of the major things fueling growth in the economy overall, rising home prices. This is a number that matters to you. Yesterday's numbers from Case-Shiller prices, home prices, up more than 12 percent year over year in May.

The biggest gain since March 2006. Close to the peak of the housing bubble. Great news. Don't forget, we're not back to where we started. Prices still down about 25 percent from the 2006 peak. And record mortgage rates are finally starting to rise. That's putting some pressure on buyers.

So far, it hasn't slowed down the growth. But the housing start, you guys, is so dramatic and so noted. There was one economist yesterday who said this is not believable. It's not sustainable. You can't have month after month of 10 percent growth in home prices. One reason is because you had so many fewer foreclosures, so home prices are able to rise better because you don't have the for closure prices down. But it's hot. I mean, the real estate market is also hot.

Also a hot drama going on with CBS and Time Warner Cable. Time Warner Cable briefly blocking out CBS networks overnight. They're deadlocked and in dispute over the cost of the cable company that it pays to carry CBS network, including Showtime.

Chess games like this are becoming more common. Viewers pay the price. The more premium channels charge the companies, the cable bills go up. Cable bills are up about 4 percent every year.

PEREIRA: People get frustrated when their favorite shows or games or whatever are suddenly blacked out.

BERMAN: "Joseph Hazard" on CBS, "Dallas" on CBS, one of my favorite CBS shows.

(CROSSTALK)

ROMANS: They're not, Berman. But you can Google them later.

PEREIRA: Thanks, Christine.

BERMAN: Thanks, Romans.

PEREIRA: Coming up, more trouble for San Diego's mayor, another woman coming forward, accusing him of sexual harassment. What happened in her own words, next.

(COMMERCIAL BREAK)

BERMAN: Anthony Weiner will not quit. The New York mayoral candidate unveiling a new campaign video, as the woman he was sexting reveals intimate new details about their relationship.

PEREIRA: Prison break caught on camera.