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EARLY START WITH JOHN BERMAN AND ZORAIDA SAMBOLIN

No Deal Yet, But Progress Reported; NSA Harvesting E-Mail Contact Lists; Iran Nuclear Talks; Madeleine McCann Mystery

Aired October 15, 2013 - 05:00   ET

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


ZORAIDA SAMBOLIN, CNN ANCHOR: The latest on these developing high stake talks, ahead.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She wasn't in our bed and that was the first time I guess you know when panic kicked in.

(END VIDEO CLIP)

JOHN BERMAN, CNN ANCHOR: We are talking about Madeleine McCann here. Three-year-old Madeleine McCann vanishing in the night missing for years. Now, new hope that police could be close to a break in the case.

Hello there. Welcome back to EARLY START. I'm John Berman. Great to see you this Tuesday morning.

SAMBOLIN: And I'm Zoraida Sambolin. It's really nice to have you with us.

We're going to begin this morning with the breakthrough that may be happening in Washington, D.C. We have all been waiting for it. Democrats and Republicans in the Senate working together to come up with a plan to reopen the government and raise the debt ceiling.

See the lights are on. They must be working.

It's far from a debt deal yet and many obstacles. The Senate caucuses will meet today to discuss the plan and not clear if the House would go along with any deal.

But as Jim Acosta reports, now there is real optimism that perhaps a potentially catastrophic default will not happen.

(BEGIN VIDEOTAPE)

SEN. HARRY REID (D-NV), MAJORITY LEADER: At present, we know it's been a difficult time for everyone.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): Lo and behold, two experienced Capitol Hill brawlers, Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell may have found the path to budget piece in Washington.

REID: We are not there yet, but a tremendous progress, and everyone just needs to be patient.

ACOSTA: Both men shared the news on the Senate floor that they are close to a deal that would reopen the government and raise the nation's debt ceiling before a potential default in less than two days.

SEN. MITCH MCCONNELL (R-KY), MINORITY LEADER: I think it's safe to say we have made substantial progress and we look forward to making more progress in the near future.

REPORTER: Is there a deal?

ACOSTA: But as Vice President Joe Biden indicated by staying mum on the subject, it's not over yet.

Here is how the deal would work: The government funded through mid- January. The debt ceiling extended to early February. In a GOP (ph) opposition to Obamacare, changes to that law are also under consideration, including new income verification requirements for health care subsidies.

Those are tweaks to Obamacare the president may not support and he is all but pressuring the Republicans to take the Senate deal.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If Republicans aren't willing to set aside some of their partisan concerns in order to do what is right for the country, we stand a good chance of defaulting.

ACOSTA: A new ABC News/"The Washington Post" poll finds the public is furious with the GOP, with 74 percent saying they disapproval how Republicans have handled budget negotiations, versus 53 percent who feel the same about the president.

But some House Republicans are holding their ground, still demanding concessions.

UNIDENTIFIED MALE: I like to do something that he gets something. I get something.

ACOSTA: Democratic Senator Barbara Boxer compared the GOP tactics to acts of violence.

SEN. BARBARA BOXER (D), CALIFORNIA: When you start acting like you're committing domestic abuse, you've got a problem. "I love you, dear, but, you know, I'm shutting down your entire government."

ACOSTA: Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

ACOSTA: Democrats and Republicans will meet with their caucuses today in the Senate. This bill must still get through the House even if there is a Senate deal. That, by no means, certain. A lot of work still to be done here.

Four minutes after the hour. Some big news here in New York. Al Qaeda suspect Abu Anas al Libi facing arraignment on terrorism charges today here in New York on terrorism. He was arrested earlier this month by U.S. special agents on the streets of Tripoli in Libya.

Al Libi spent last week being interrogated on a ship in the Mediterranean. He was taken to New York over the weekend and received medical treatment. His wife telling reporters he suffers from hepatitis C. Al Libi allegedly planned the 1998 bombings of two U.S. embassies in Africa.

SAMBOLIN: The NSA is harvesting hundreds of millions of contact lists from e-mail and instant messaging accounts, that is, all over the world -- many of them belonging to U.S. citizens. That is according to documents given to "The Washington Post" by NSA leaker Edward Snowden.

It is the first time that we are hearing about this operation at the agency address. Well over half a million email address books from Yahoo, Hotmail and Facebook accounts reportedly are being intercepted by the NSA on a daily basis. That's according to this report.

BERMAN: In Geneva this morning. It could be the beginning of a very different relationship between Iran and the world's nuclear powers. Negotiators from Iran are meeting with representatives from the U.S. and five other nations. The goal is try to work out a plan that would keep Iran from developing nuclear weapons and this time perhaps it could be different.

Chief national security correspondent Jim Sciutto live in Geneva this morning.

And, Jim, it really does seem that these talks are at least beginning with something of a different tone.

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: No question. A lot of people involved, calling them the most hopeful talks between the U.S. and Iran in years now. That's a low standard but there is optimism on both sides and a sense that there is substance on both sides, willingness particularly for Iran to back off what has been really an immovable position on their nuclear program, particularly following the election of their new president, but also this outreach that took place in New York during the U.N. general assembly including this famous, this historic phone call between President Obama and the Iranian president.

But still, there are challenges. This is the first test to see whether that outreach is substantial. And the word of the day from U.S. officials taking part in these talks is clear-eyed. Quote, "They are going into these talks clear-eyed." That's language repeated by Secretary of State John Kerry when he was describing them, saying that they are looking for something substantial and that's what they're hearing right now just behind me from the Iranians, what plans coming to the table to see if they can move these talks forward.

BERMAN: With those clear eyes they are using to look at this, Jim, what would the U.S. be considered success in these talks?

SCIUTTO: A number of standards. One is Iran has to reduce their enrichment of uranium. This has been the key issue. They have to provide much more transparency, including access to some of these nuclear facilities that have been kept secret from international inspectors. And also, part of the deal, at least from the U.S. and the Western side, would be shipping some of this enriched uranium out of the country so it could be turned into something, fuel for nuclear reactors but something that could be not transformed into something you could turn into a nuclear bomb.

These are the standards coming in and it remains to be seen, particularly on that issue of shipping some of the enriched uranium out of the whether, whether the Iranians are willing to give in on that. In fact, the foreign minister of Iran, before arrived at these talks said that would be a red line issue for Iran, something they wouldn't be willing to give up.

On the other hand, he says he believes that the U.S. can reach an agreement with the Iranians within a year. He expects a road map to come out of these talks. So, you're also hearing some hope and optimism from the Iranian side.

BERMAN: Let's see if this optimism turns into anything as they meet behind closed doors.

Keep us posted, Jim. Great to have you here on EARLY START this morning. Jim Sciutto in Geneva.

SAMBOLIN: Seven minutes past the hour.

Now released three kidnapped Red Cross workers and a Red Crescent volunteer in Syria, but the fate of three others is still unknown at this hour. Gunmen stopped the aide workers convoy in rebel territory in northern Syria. No one has taken responsibility for these abductions but al Qaeda affiliate is warning western aid workers they risk kidnapping or even death if they enter Syria.

BERMAN: Meanwhile, Syrian president al Assad is saying the Nobel Peace Prize, quote, "should have been mine." The remark according to a pro-Damascus newspaper in Lebanon was made as a joke as he talked about this year's Peace Prize recipient.

The prize was given to the Organization for the Prohibition of Chemical Weapons, which is working in Syria to destroy the Assad regime's massive arsenal.

Cheeky to say the least.

SAMBOLIN: That was a joke.

BERMAN: Yes, maybe inappropriate a little bit there.

Time for a check of the weather today. Indra Petersons is here with that!

Good morning.

SAMBOLIN: Welcome back!

INDRA PETERSONS, AMS METEOROLOGIST: Thank you so much. It's gorgeous this weekend, but maybe not everybody.

SAMBOLIN: Not everywhere, Indra, only where you were.

PETERSONS: In Maine, it was beautiful.

Yes, definitely, you're actually the storm now obviously move off shore. This is the one that was there over the weekend, into the Northeast. And we're currently tracking another storm, making its way across the country.

Looking for storms from Minnesota down through Texas as a cold front slowly moves across the country. The reason I say slowly is it's pretty key, because we're actually looking a tropical depression.

Look at the streaming in towards Texas. This is a water vapor. You have this tropical moisture and you combine that with that slow moving cold front. And once you have that, remember all the rain they just had over the weekend?

Looks like Texas is still dealing with even more rain the next several days and even 3 to 5 inches is still possible with the system as it continues to make its way across. So, with that, we're going to be looking at flooding concerns again in the region today.

That's the kind of big story as you look out at the forecast today. Everywhere else, the big story will be temperature changing as the cold front continues to make its way across, we're going to be looking at this cold air kind of filling into the region. So, the beautiful temperatures in the Midwest will back off and drop down.

So, but at least it's try for like a day.

SAMBOLIN: I'm supposed to be headed to Chicago. Can I get a personal weather forecast there?

PETERSONS: Absolutely. It will be sent to your inbox in a second.

SAMBOLIN: Thank you. Appreciate it.

BERMAN: Thanks, Indra. Appreciate it.

SAMBOLIN: And coming up: new tips p in a mysterious cold case kidnapping. Are police close to figuring out what happened to 3-year- old Madeleine McCann?

Plus --

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: My whole body was convulsing and I couldn't speak. UNIDENTIFIED GIRL: Really started shaking because I was really scared.

(END VIDEO CLIP)

BERMAN: And a mother suddenly paralyzed while driving. How her 8- year-old daughter stepped up to help save her mother's life. It's an amazing story.

SAMBOLIN: Plus, it's time for your morning rhyme. Tweet us with your own original verse. We have some really good ones this morning. #earlystart, #morningrhyme.

We're going to read the best ones on the air in our next half hour, so you still have time.

(COMMERCIAL BREAK)

BERMAN: Welcome back to EARLY START, everyone.

Investigators in Britain and Portugal now tracing down new leads in the case of missing 3-year-old Madeleine McCann. She, of course, disappeared while with her family on a vacation six years ago. Police say they now have a name for a man that they would like to talk to.

As Erin McLaughlin reports on a live television broadcast, her family begged for public help and finally solving this mystery.

(BEGIN VIDEOTAPE)

ERIN MCLAUGLIN, CNN INTERNATIONAL CORRESPONDENT (voice-over): A new plea from the parents of Madeleine McCann.

KATE MCCANN, MADELIENE MCCANN'S MOTHER: Please, please, have the courage and confidence to come forward now and share that information with us and you can unlock this whole case.

MCLAUGHLIN: And a chilling memory now six years old.

Kate McCann described when she realized her 3-year-old daughter was missing in their holiday apartment in Portugal.

MCCANN: I looked at the bed and I couldn't make it out and I realized she is not in that bed. I wonder if she has woken up and gone to our bed? She wasn't in our bed and that was the first time I guess, you know, panic kicked in.

K. MCLAUGHLIN: It's all part of an international appeal to the public for more information about Madeleine's disappearance.

CHIEF INSPECTOR ANDY REDWOOD, METROPOLITAN POLICE: Even if it's just 0.1 percent chance she is alive, we will continue to fight for her.

MCLAUGHLIN: Part of the push? Scotland Yard releasing computer- generated sketches of a man they say was in the area at the time Madeleine vanished. REDWOOD: The man who is white with dark hair had a child in his arms. The child is described as being between 3 and 4 years of age with blond hair and possibly wearing pajamas. So, that itself is significant information.

MCLAUGLIN: A 25-minute re-enactment of that night has been shown on television and giving updated time line, which has allowed them to eliminate old theories and explore new avenues in the investigation.

Madeleine's parents say they have never given up hope that they will find their little girl.

GERRY MCCANN, MADELIENCE MCCANN'S FATHER: We don't know what has happened to Madeleine. We don't know who has taken her. Probably our best chance of finding that is identifying that person.

K. MCCANN: It doesn't matter how much heartache we put ourselves through, so long as we get the results we need.

MCLAUGHLIN: Erin McLaughlin, CNN, London.

(END VIDEOTAPE)

SAMBOLIN: Fifteen minutes past of the hour.

In Missouri, a family is pleading for justice after they say their daughter was raped, their children harassed and the case against a perpetrator dropped because they say of his family's political connections. At story first reported by "The Kansas City Star".

Daisy Coleman was 14 years old when she says a 17-year-old football player raped her and another teenager reportedly videotaped the assault. The sheriff said the suspect confessed. They were arrested and charged. But then the case was dropped.

(BEGIN VIDEO CLIP)

SHERIFF DARREN WHITE, NODAWAY COUNTY, MISSOURI: The only reason the prosecutor didn't move forward in this case is he didn't have any victims. The victims chose not to be involved in this case. They chose to not cooperate, to not speak, to not do anything.

MELINDA COLEMAN, MOTHER OF DAISY COLEMAN: That is absolutely not true and they talked to her in the hospital room. I have the police report. You can see her full story. She told them everything.

(END VIDEO CLIP)

SAMBOLIN: Daisy and her siblings say afterwards they faced an onslaught of bullying. The family tried to sell their house and move but then that house mysteriously caught fire. CNN has not been able to reach the prosecutor for comments. The sheriff says since charges were dropped he cannot reopen the case.

BERMAN: Breaking her silence this morning. The mother of Baby Hope the little girl murdered in 1991 then stuffed in a cooler and left along a New York highway. Margarita Castillo tells "The New York Daily News" she is devastated and she is waiting for justice for her baby. Four-year-old Anjelica Castillo was finally identified after more than two decades. Police say a distant cousin has confessed to sexually abusing the girl and suffocating her.

SAMBOLIN: To Colorado now where what could have been a highway tragedy ended safely, thanks to an eight-year-old girl. Jolene Size (ph) and her daughter were cruising along when mom felt the onset of a severe migraine. It's not your average headache, she says. It comes with paralysis and even seizures.

She knew she had to get off the road so she managed to cross three lanes of traffic. That is when her daughter took control of the situation dialing 911.

(BEGI NVIDEO CLIP)

UNIDENTIFIED GIRL: She was right here and she hand me the phone.

UNIDENTIFIED FEMALE: And Rhett saw the whole thing and she tried to hold my hand.

UNIDENTIFIED GIRL: I went like mom, mom.

UNIDENTIFIED FEMALE: My whole body was just convulsing and I couldn't speak.

UNIDENTIFIED GIRL: I started shaking because I was really scared.

UNIDENTIFIED FEMALE: She had panic in her voice but she was able to do it.

(END VIDEO CLIP)

SAMBOLIN: So, that little girl was still talking to the dispatcher when the ambulance arrived. The pair had actually practiced all of this after a similar incident a week earlier. She's very smart, right?

BERMAN: Very smart.

SAMBOLIN: Little Rhett is a hero this morning.

BERMAN: I love her voice. I just can't get enough of her voice.

All right. Coming up for us -- the Senate working on a compromise to end the debt standoff. There could be big news this morning. The question is: what does Wall Street think about all of this? "Money Time" is next.

(COMMERCIAL BREAK)

SAMBOLIN: True love!

BERMAN: Welcome back to EARLY START, everyone.

It must be a big day because Christine Romans is here for "Money Time."

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It's a high stakes day and a high stakes week really for your 401(k) here, guys. It all depends on whether a debt doom's day deal gets done in the United States Senate.

You know, stock futures are high this morning. Lawmakers have until Thursday. That's the day the treasury secretary says we don't have enough cash to pay all of the bills unless the debt ceiling is raised. Over the past four sessions the Dow is up 525 points.

Look, they are assuming they are going to get something done but any agreement reached in the Senate must make its way through what is a battle in the House. There is very little time to get it all done. There is a lot of risk here for your retirement.

Banks have been cautious about this and we have seen that in the short term. T-bills, the interest rate, look at that. They're spiking as banks sell T-bills to prepare for disruption should the government be unable to pay all of its debts. That's crazy. That chart right there is crazy and shows that Washington is hurting your money.

Now, remember what we are potentially facing here. If Congress fails to raise the bar on the cap, Treasury would like to run about a third short of the money it needs to pay everything between this Friday and November 15th. A third short.

What's ironic is that corporate cash piles are huge right now, companies are just sitting on their money. They're sitting on almost $2 trillion.

But according to recently relieved data by the St. Louis Feds, companies don't want to spend it because of Washington. Putting a portion of that pent-up cash to work would mean millions of jobs but there's no confidence because of our leadership, so no one is doing anything. Washington is hurting job creation and Washington is hurting the economy.

We're going to see how big companies are doing in this economic environment today. We're going to get earnings from Citigroup, Coca- Cola and Johnson & Johnson, Intel.

And a major announcement overnight about management at Apple, the Burberry Group CEO Angela Ahrendts is leaving the U.K.'s largest luxury good-maker, Burberry, leaving Burberry, to take over as head of Apple's retail and online business.

BERMAN: All iPhones (INAUDIBLE) now?

ROMANS: I know, right? You're going to able to get a trench coat with your iPad.

It's a newly created position that will report directly to the Apple CEO Tim Cook. Ahrendts is going to oversee strategic direction, expansion and operation of Apple's retail and online stores -- a lot of buzz about that this morning, about someone from the fashion industry --

SAMBOLIN: She'll be doing that fashionably. She will look great. How odd, right?

ROMANS: You know, Apple is so into the packaging and look and aesthetic of its product. It makes perfect sense. It makes perfect sense. And she is, by all accounts, a very good leader. Also something that makes sense at Apple.

BERMAN: Christine Romans, thank you so much. Great having you here.

ROMANS: You're welcome.

SAMBOLIN: And coming up, could it be true? A deal to end the government shutdown and prevent an economic catastrophe? Could it be near? The optimism that we are finally hearing from Washington, coming up next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I keep hearing over and over is, I never thought I would need a food pantry but here I am.

(END VIDEO CLIP)

BERMAN: A deal to end the government shutdown said to be near this morning but, honestly, wait until you see how it's affecting these real people furloughed weeks of pain.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I actually helped crop his body up in the proper position so they could perform CPR.

(END VIDEO CLIP)

SAMBOLIN: Heartbreak on a Carnival cruise ship. A child drowning on his family vacation. This morning, questions of safety on board. Could this tragedy have been prevented?

(BEGIN VIDEO CLIP)

ALEXIS WESLEY, DONATED KIDNEY: Saving your kidney for a rainy day is like saving a fire extinguisher while watching your neighbor's house burn.

(END VIDEO CLIP)

BERMAN: This is an incredible couple, giving the gift of life. Both of them donating kidneys to complete strangers. We have the story behind their amazing generosity.

SAMBOLIN: We know what we should have? We should have a story of the day every day and challenge ourselves to find stories like that. Isn't that beautiful? Fabulous.

BERMAN: That's a good one. That's a really, really great.

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

SAMBOLIN: And I'm Zoraida Sambolin, 29 minutes past the hour.

BERMAN: This morning, optimism, smiles, maybe hope in Washington is growing. Perhaps they are getting closer to a deal to end the government shutdown and avoid defaulting on the nation's debt.

The Senate leaders Democrat Harry Reid and Republican Mitch McConnell, they say they have made progress, lots and lots of progress, tremendous progress in fact, in Senator Reid's words, but they are not there yet and they really have not much time left. Just two days left to work out the details. The hard part is getting the House on board before a potential default.