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EARLY START

More Rocket Battles in Middle East

Aired July 11, 2014 - 05:30   ET

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


CHRISTINE ROMANS, CNN ANCHOR: Crisis at the border. A fast approaching deadline for Congress to pass the president's $4 billion plan to fix this problem. Gridlock in Washington intensifies. Thousands of children keep crossing into the country illegally. The very latest on this is ahead.

JOHN BERMAN, CNN ANCHOR: The death toll is rising as Israel launches more rockets in Gaza. Women and children among those killed. Is there any end to this violence in sight? We are live.

ROMANS: Good-bye summer? A big chill coming to parts of the country. Indra Petersons is tracking just how far temperatures will drop but do not call it a polar vortex, John Berman.

BERMAN: No. Oh my goodness.

ROMANS: Because that's not what it is.

BERMAN: Yes, yes. That was -- we almost derailed the entire show the last half hour with the mere phrase, polar vortex.

ROMANS: I know. Indra Petersons is a scientist. You have to stick to the science, Berman.

Welcome back to EARLY START. I'm Christine Romans.

BERMAN: I'm John Berman. Thirty-one past the hour right now.

Let's talk about Washington. Let's talk about the border. We're going to begin with the intense acrimony between President Obama and House Speaker John Boehner, really at a whole new level.

We now know that the speaker's lawsuit against the president will focus on the Affordable Care Act. Speaking Boehner saying changes to the health care law should have been left to Congress. He says the president overreached his authority by taking executive action. The speaker says he doesn't have a problem with the president's right to issue executive orders, he only says he doesn't have a right to change legislation without congressional approval.

This all led to some pretty heated sparring Thursday between the speaker and the president.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R), HOUSE SPEAKER: Listen. This is a problem of the president's own making. He's been president for five and a half years. When is he going to take responsibility for something?

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: You hear some of them, all right, sue him, impeach him.

UNIDENTIFIED FEMALE: Yes.

OBAMA: Really?

(LAUGHTER)

OBAMA: Really? For what? You're going to sue me for doing my job?

(APPLAUSE)

OBAMA: OK.

(END VIDEO CLIP)

BERMAN: A whole lot of issues now being thrown up in this cocktail, including immigration. This is playing out as the funding deadline looms on the president's $3.7 billion plan to fix the border crisis.

At a Senate hearing Thursday, Homeland Security Secretary Jeh Johnson said doing nothing is not an option. He said time is of the essence. Because agencies involved in the president's plan will start running out of money.

ROMANS: So immigration authority is Congress. Congress writes immigration laws.

BERMAN: Congress writes all laws.

ROMANS: Right. Right. So there's a -- why can't Congress -- why does it have to be comprehensive immigration reform? Why is this whole -- this border problem gets wrapped up into the fight over comprehensive immigration reform? Can they just fix this narrow part of it?

BERMAN: Well, they can pass anything they want to pass.

ROMANS: What they want to.

BERMAN: What they have not shown is a will to pass much of anything.

ROMANS: All right. Caught in the middle. More than 51,000 -- unaccompanied children who have entered just since October. Just since October. A federal law mandates they spend only 72 hours at detention centers but they aren't being removed that quickly. The courts are clogged. They're not getting their court hearing. And most of them are not deported. Some opponents of the influx are taking matters into their hands.

The founder of the Minuteman Project, remember that? He says his operation -- he's launching something called Operation Normandy. A plan to gather volunteers on the U.S.-Mexico border to avoid what he calls an invasion of undocumented immigrants. But for those risking it all, making this dangerous journey, it's about working hard toward their own dream.

(BEGIN VIDEO CLIP)

ELVIN CHINCHILLA, ILLEGAL MIGRANT: If we work under the sun and other things over there now, if you -- if you -- if you're born over there, your life is going to be different. You're going to work in Arby's, go to a nice high school, go to a nice college, you know? I don't think we're stealing their money or their job, you know. It's really an American dream. You can make money and live better.

(END VIDEO CLIP)

ROMANS: After their meeting on the crisis, the Texas governor, Rick Perry, sent a follow-up letter to the president reiterating, quote, "the governor's request" for the president to take immediate action to secure our border and address the influx of unaccompanied children.

BERMAN: Now to the latest in the Middle East. Reports of more rocket fire. At least one of them coming into Israel from the north, from Lebanon. Israel responding with artillery strikes and calling up some 30,000 reservists in case this conflict keep intensifying.

All this as President Obama has reached out to Israeli Prime Minister Benjamin Netanyahu telling him that the U.S. is willing to broker a ceasefire.

Diana Magnay right now on the Israel-Gaza border.

That ceasefire does not seem imminent -- Diana.

DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Hi, John. No, it certainly doesn't. And really the U.S., it looks as though, is trying to give Benjamin Netanyahu a sort of exit strategy to try and help facilitate talks and get regional power brokers like, for example, Egypt, involved ahead of a possible ground invasion.

Because as soon as Benjamin Netanyahu does decide -- if he does decide -- to send troops into Gaza, you can be sure that the death toll on the Palestinian side, which is already at 98 will just rise further. And you will probably start to see Israeli troops dying, also.

Right now, Israeli public opinion is pretty much behind Mr. Netanyahu. But people seem to be extremely split on whether a ground operation is the right way to go -- John.

BERMAN: All right. Diana Magnay for us on the border between Israel and Gaza.

As we say that conflict potentially intensifying with Lebanon -- with missiles from Lebanon coming in.

Our thanks to Diana.

ROMANS: All right. The United Nations says nuclear materials seized by the extremist group ISIS when it took over Mosul in Iraq is low grade and does not pose significant safety security or nuclear proliferation risk. The agency was responding to a letter from Iraq's U.N. ambassador that said the nuclear materials could enable terrorists to carry out attacks or make weapons of mass destruction if they had a little more expertise or use them in combination with other materials.

ISIS took control of about 40 kilograms of uranium used in scientific research.

BERMAN: Nine military officers rebuffing Republican claims that a stand-down order held back a special ops team that could have saved the four Americans killed in Benghazi. Transcripts of the closed-door House hearing showed the senior military officer who issued the instruction and a detachment leader who received testified that it was the right call. Instead the team was called on to help protect and care for people evacuating from Benghazi and from the U.S. embassy in Tripoli. One team member is credited with saving the life of one of those evacuees.

ROMANS: Now to a delicate meeting in Afghanistan. Secretary of State John Kerry getting together with the country's two presidential candidates as well as Afghan President Hamid Karzai and U.N. officials today. He's going to try to broker a resolution to last month's disputed election.

Abdullah Abdullah won the first round is calling the second round into question, which he seems lost. The dispute threatens to stir up ethnic tensions and undermine a smooth, peaceful, political transition.

BERMAN: Unanimous support from top military brass from the Obama administration's deal to bring Sgt. Bowe Bergdahl home t. In letters released Thursday the chairman of the Joint Chiefs of Staff and the heads of all five military branches expressed their support saying the U.S. does not leave soldiers on the battlefield. Five Taliban- affiliated detainees at Guantanamo Bay were released as part of this deal.

ROMANS: Another sign of strain between the U.S. and Germany. The German government ordering the top American spy in the country to be expelled. Chancellor Angela Merkel publicly announcing the expulsion of the CIA's Berlin station chief who works undercover. His predecessor and the job oversaw the recruitment of a German intelligence officer arrested last week who reportedly told his interrogators he was spying for the CIA.

German investigators are looking -- also looking at a second case of an official who may have been working for the U.S.

BERMAN: Big ruling on Obamacare could come today. The decision could alter the Affordable Care Act if it declares the majority of health care subsidies are illegal. A three-judge panel under the D.C. court of appeals deciding where their tax credits and subsidies can be used by individual consumers looking to buy health insurance on federally run exchange.

You know, another big development in Obamacare, the number of uninsured people in the country dropped precipitously. For the last year a lot of people did credit Obamacare for that.

ROMANS: Well, that's the whole point. That Obamacare wants to get people who didn't insurance.

BERMAN: New development in the IRS controversy and the scrutiny of tax exempt applications by Tea Party groups. A judge ruling the Thursday that the IRS has to explain by August 10th how it lost e- mails that were sought during a Republican inquiry. He also appointed a federal magistrate to look into the possibility of recovering any of former IRS official Lois Lerner's lost e-mails.

ROMANS: All right. Time for an EARLY START on your money.

European stocks are finally up this morning after five days of losses. Asian shares are mixed. Futures, U.S. stock futures are up right now pointing to a better day. The S&P has fallen about 1 percent this week.

Is this just a temporary slump in this five-year bull run? Experts are telling us, yes, this is temporary. According to a brand new CNN Money survey out this morning, experts predict the S&P 500 will finish the year above 2,000. That would be a 9 percent gain.

BERMAN: Nine percent?

ROMANS: Right now the S&P 500 is up about 6 percent this year. So a little more to go, maybe. Experts survey they are more bullish than earlier this year when they predicted a 6.5 percent gain.

You know, the stock market is a leading indicator, right? So the stock market have been telling us the jobs are getting better, companies are starting to hire, they're starting to spend money, they're starting to make more money. So now the economic news is going to have to come in good to -- I think, to justify higher prices here.

BERMAN: All right. So it is summer, allegedly. But there is some possibility of problem on the way here. Some serious cold. But is it the polar vortex? Watch Indra Peterson's head explode, right after the break.

(COMMERCIAL BREAK)

ROMANS: Summer is about to get a bit chilly.

BERMAN: But do not dare call it a vortex of any kind else Indra Petersons will come after you.

ROMANS: Because it's not a polar vortex.

BERMAN: It's not a polar vortex.

ROMANS: You just like to say it.

BERMAN: I just like it. It's fun. INDRA PETERSONS, AMS METEOROLOGIST: It's the wrath of Indra, right?

You shall be very afraid. No, it's not a polar vortex, but definitely a chill will be out there.

Now these are next week's low temperatures in the morning hours. This is what everyone is talking about. Notice Marquette looking for lows in the morning into the 40s. That's still only about 10 degrees below normal. No one is dying here. But nonetheless you are going to see this trend.

Now what is going on? Let's explain it. When weather is normal the way it should be, the jet stream, a nice straight line, right? But if you have something that's kind of maybe atypical, you'll start to see a roller coaster kind of effect. What we saw last week as we all know was the big typhoon. That was like this trigger, by taking a ribbon to the jet stream and going like this. So it caused this ripple effect down the line. So by next week, we'll start to see some cold air from Canada dip down.

The highs, let's take a look at them. They're not fun for summertime. We're talking about high just into the 50s. Notice average about 77. Some good 20 degrees below where they should be. But the farther south you are, the less of the fact you are going to feeling. But either way, I mean, it's summer. No one wants to see 50s as their high this time of year. Not a polar vortex, guys.

So what's going on right now? The southeast, we still have a jet stream that's kind of or I should say the cold front starting to kick out of here. The next cold front is going to be pushing through the Midwest, start to see some showers on Friday, eventually spreading into the northeast by the end of the weekend. And notice it's that third cold front kind of making its way through by next week. That's going to have the cold air behind it.

So there you go, it's three cold fronts in a row. As far as amount of showers we do have a threat for severe weather. Maybe Chicago, about two to four inches. The higher mountain. So everyone else seeing some pretty scattered and light showers out there.

It is not going to be the big deal and no, it is not a polar vortex, and no one is below freezing. So I get that all clear?

(LAUGHTER)

BERMAN: Wow.

ROMANS: But --

PETERSONS: That is done.

ROMANS: But it's not going to be below freezing, Christine, in Michigan on your vacation.

BERMAN: Yes.

(CROSSTALK) PETERSONS: Don't mess with me, Christine, right?

BERMAN: How about that 40s.

ROMANS: Low 50s.

BERMAN: Enjoy.

ROMANS: All right. It's not your fault. I know but thank you.

Let's take a look at what's coming up on "NEW DAY". Michaela Pereira joins us now.

Hi, Michaela.

MICHAELA PEREIRA, CNN ANCHOR, NEW DAY: Did she say the words polar vortex? I know she said that it isn't.

BERMAN: No. Don't you dare?

PEREIRA: But really? She can't use those words in July.

BERMAN: Don't dare.

PEREIRA: Good morning to the two of you. To all three of you. We're going to have a lot to cover this morning on "NEW DAY." We're looking at the border crisis.

Political rhetoric obviously apparent and proving much easier to find than any sort of solution. Republicans are now widening the scope of their complaints to Obamacare. They are getting ready in fact to file a lawsuit, saying that the president violated the law. We're going to break all of that down for you.

A crisis along another border is worsening and very concerning this morning. Israel and Hamas militants, they're still exchanging fire. Now Israel is getting hit by rockets from Lebanon.

Will the president's offer to help broker a ceasefire help? We're going to turn to our Wolf Blitzer, he is on the ground in Jerusalem. And he's going to bring us a live report for us this morning. It will be very interesting to hear what Wolf is learning on the ground.

Looking forward to NEW DAY. The both of you, we're having a bit of a day here together, the three of us. We'll be spending a lot of quality time this morning.

ROMANS: I know, I can't wait.

BERMAN: It's very exciting.

ROMANS: I can't wait. It takes two of us to keep Berman --

PEREIRA: Isn't that the truth?

BERMAN: I'm a whole lot of man. (LAUGHTER)

PEREIRA: Sure.

ROMANS: Something I've never heard -- sorry.

(LAUGHTER)

PEREIRA: We love you, John.

ROMANS: Thanks. We'll talk to you soon, Michaela.

PEREIRA: You got it.

ROMANS: All right. Shelly Sterling returns to the witness stand in her fight to sell the L.A. Clippers. Now he's a whole lot of man, right? (INAUDIBLE) in particular. Donald Sterling, the new revelations she revealed about her husband, next.

(COMMERCIAL BREAK)

ROMANS: All right. The court battle between L.A. Clippers owner, Donald Sterling, and his estranged wife over the future of that team is taking a breather. But a deadline is looming. The $2 billion deal to sell the team to Microsoft's CEO -- former Microsoft CEO Steve Ballmer, has a Tuesday deadline. But it also includes a provision to extend it to August 15th.

Shelly Sterling testified Thursday that Barbara Walters canceled an interview with Donald because of his erratic behavior at a hotel. She also testified that her husband was initially excited about the sale of the team but within days his mood changed. His attorneys say she wasn't acting in good faith.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It was a vicious little conspiracy that was put together with her and the lawyers. And at the very day Donald Sterling said I'm not going to sign, they notified me that he was discharged as a trustee. Does that sound to you like it isn't a pre- planned conspiracy?

UNIDENTIFIED MALE: We believe we've shown overwhelmingly that these two distinguished doctors certified him as incapacitated and he was removed as of May 29th. And we're here to get a judge to confirm that because the agreement Mr. Ballmer requires a court order.

(END VIDEO CLIP)

ROMANS: The trial won't resume until July 21st. Closing arguments set for the 28th.

We're learning more this morning about the suspect in the Houston area mass shooting that left a husband and wife and four of their children dead. And prosecutors have identified the gunman as this man, 33- year-old Ronald Lee Haskell. Police say he tied up his victims and shot each one in the head execution style.

We're now hearing from the grandparents -- grandparents who are now mourning the loss of four of their grandchildren. And they say they have spoken to the lone survivor of this massacre, a 15-year-old girl. That girl was able to call police after she pretended to be dead after she was shot.

(BEGIN VIDEO CLIP)

JOYCE STAY, GRANDMOTHER OF VICTIMS: Cassidy is a strong spirit. She will be very good -- I mean, she's going to have a tough time but she knows her parents. She told me when I talked to her on the phone last night from the hospital, I said I was so sorry, Cassidy, about everything that's happened but I'm so thankful you're still here with us. But I said that she said my mom and dad are in a better place.

(END VIDEO CLIP)

ROMANS: Investigators say the gunman was looking for his ex-wife. Investigators say there have been a long history of reported domestic abuse. Haskell has been booked on multiple charges of capital murder and is undergoing a mental evaluation. So sad.

Hundreds of firefighters battling a raging wildfire in central Washington. The Mills Canyon Fire has burned now over 28 square miles since it began Tuesday. Fire fighting conditions improved Thursday, winds died down. But so far none of this fire has been contained. About 200 homes near the said city of Entiat are threatened by the flames. Residents of several homes in the fire's path have now been told to evacuate.

To the trial now of a friend of accused Boston marathon bomber, Dzhokhar Tsarnaev. An FBI agent testifying Thursday that Azamat Tazhayakov watched a garbage truck haul away a backpack containing fireworks that he and two other men took from Tsarnaev's dorm room. The agent also said Tazhayakov's laptop has searches on it of news coverage of the bombings, had a YouTube clip of surveillance video near the finish line and specific searches on Tsarnaev. He's accused of removing items from Tsarnaev's dorm room in the days after the bombings.

The mom of the toddler who died in a hot car last month has hired an attorney. Leanna Harris has not been charged or named in her son's death, but her behavior following the little boy's death has been heavily scrutinized by investigators. There's also word that Harris has left Atlanta to be at her mom's home in Alabama. Meanwhile, her husband, Ross Harris, is behind bars charged. He is charged with felony murder and second-degree cruelty to children.

A Mississippi baby thought to be cured of the HIV virus is infected again. This child who is now 4 had been tested regularly for the virus. Now that the virus has not only returned but researchers say it's now showed signs of damaging the little girl's immune system. The news is a disappointing blow. Really a blow to doctors who had thought they were on track to cure the infection once and for all. Eleven days into free agency and LeBron James is done with meetings.

Now all that's left for him to do is to reveal his decision. That means we wait as the anticipation in sportsland builds. Will he resign with -- re-sign, rather, with the Miami Heat or return to his home state Cleveland Cavaliers. It seems his own teammates are unsure of his decision.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I got nothing to say men.

UNIDENTIFIED MALE: You're all smiles though?

(CROSSTALK)

UNIDENTIFIED MALE: You're all smiles?

UNIDENTIFIED MALE: Life is good.

(END VIDEO CLIP)

ROMANS: Life is good. Fans are hoping for an answer from LeBron before he heads out to Brazil for this weekend's World Cup.

All right. Drone delivery on the way. Amazon announcing it's ready to launch its air delivery service. Details when we get an EARLY START on your money, next.

(COMMERCIAL BREAK)

ROMANS: All right. An EARLY START on your money, Friday edition.

European stocks up this morning after five days of losses. Futures -- U.S. stock futures looking higher here, pointing to a better day for stocks. The S&P down about 1 percent this week. So could reverse a little bit of that today.

This is just a temporary slump, just what we've seen this week in this five-year bull market. Experts think so. According to a brand-new CNN Money survey out this morning, experts predict the S&P 500 will finish the year above 2,000. That would be an almost 9 percent gain for the year. The S&P right now up about 6 percent. So maybe a little more juice to go in this bull.

Amazon is getting serious about using drones for delivery. They're seeing permission from the government to start testing unmanned aircraft more broadly. Right now it can only experiment with drones at government testing sites. The retailer wants to expand those tests to its property. Amazon says it's prime air service will deliver packages in 30 minutes or less. And one day, seeing Amazon drones will be as normal as seeing mail trucks. Amazon shares are up in free market trading.

Crumbs might not be dead after all. The cupcake chain closed all of its stores on Monday to tears from some cupcake fanatics. Now a group of investors may be coming to the rescue. A CNBC host and others are preparing to put together a bid to save Crumbs. The company stock soared on the news, up 1200 percent to 40 cents a share.

All right. Two minutes to the top of the hour. It's Friday. "NEW DAY" starts right now.

MICHAELA PEREIRA, CNN ANCHOR: Presidential lawsuit. Republicans gearing up to sue the president of the United States over the health care law, this as they continue to blast him over the border crisis.

Can Washington get anything done?

JOHN BERMAN, CNN ANCHOR: Breaking overnight, Israel now facing fire from another front. Rockets being launched from southern Lebanon. And as Israel calls up tens of thousands of reservists, is a ground invasion of Gaza next?

CHRISTINE ROMANS, CNN ANCHOR: Tangled web. Internet post painting a grim picture of a father who allegedly left his son to die in a hot car. We'll show you what he said and see if it could hurt him in court. This, as his wife lawyers up.

PEREIRA: Your NEW DAY starts now.

ANNOUNCER: This is NEW DAY with Chris Cuomo, Kate Bolduan and Michaela Pereira.

PEREIRA: Statue looking beautiful this morning.

Good morning and welcome to NEW DAY. It's Friday, the 11th of July, 6:00 in the East. Chris and Kate are off. Mr. John Berman joins me.

Good morning.