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EARLY START

Flight from Gaza; Germany Wins World Cup

Aired July 14, 2014 - 05:30   ET

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


POPPY HARLOW, CNN ANCHOR: Happening now, the death toll rising in Gaza. Israel launching more rockets, widening its targets and deploying ground troops calling thousands to evacuate parts of Gaza for their own safety. We're live.

JOHN BERMAN, CNN ANCHOR: Cross country storms today. Millions bracing for severe weather. We're talking violent winds, rain, hail, flooding. We will track who will be hit the hardest.

HARLOW: Also breaking overnight, riots in the streets of Buenos Aires after Argentina loses the World Cup to Germany. It was an intense game. Berman was watching every second of it.

BERMAN: Every last second. My voice hoarse from the show.

HARLOW: Welcome back to EARLY START, everyone. Happy Monday. I'm Poppy Harlow.

BERMAN: I'm John Berman. About 31 minutes past the hour right now. We will begin this half hour with the flight from Gaza. Thousands of people fleeing their homes after a warning from Israel that an intense large-scale military operation may be imminent.

The Israelis did send in some ground commandos to knock out a Hamas rocket launching site after launching a deadly missile attack that seriously injured Hamas' top law enforcement official and killed 18 members of his extended family.

Karl Penhaul is monitoring developments for us live in Gaza this morning.

Karl, what's the latest?

KARL PENHAUL, CNN INTERNATIONAL CORRESPONDENT: Well, John, this morning, Israel airstrikes are continuing to pound the Gaza Strip and militants from Hamas and Islamic jihad are continuing to rain down rockets on Israel. In fact just a few moments before coming to air about a mile and a half over in that direction, we -- we saw about three rockets heading off towards Israel, high into the air and then heading off into the distance.

So certainly neither side letting up in this fight. And certainly no sign yet of any real diplomatic headway into trying to cause and bring about a ceasefire to this war as it has been going on now for the last few days. But of course, trapped in the middle of those warring sides the civilians, Israel is continuing to drop leaflets and make telephone calls to thousands of homes in northern Gaza, telling the population there to clear out, to move south.

Of course, they cannot leave Gaza. They can't flee beyond the borders either as refugees or as displaced people. Why? Because those borders are closed. Israel won't let any refugees in. and down south the borders with Egypt is also firmly closed unless you've been wounded or have an Egyptian passport.

But the fact that Israel has continued to drop those leaflets in the northern part of Gaza where it believes some of those long-range rocket launchers are sighted is an indication that Israel is expecting to intensify its bombing raids there and could also be preparing for that ground invasion, though so far hasn't said when that could begin -- John.

BERMAN: Well, there is the sense that Israel wants to degrade the capabilities of Hamas more than it has the past few times we've been through conflicts like this which could mean some kind of ground action.

Karl Penhaul for us in Gaza, thanks so much.

HARLOW: Eight million votes are being recounted in Afghanistan as we speak. One month after that country's disputed presidential election. Secretary of State John Kerry brokering the recount after threats by the trailing candidate to try to create a split government there. U.S.-led NATO forces will supervise the process and once the results are announced the plan is to create a united -- tried to create a united Afghan government that will include members of both sides.

BERMAN: Developing this morning, more bickering in Baghdad, still no parliament speaker named in Iraq. Negotiations falling apart again between Shiite and Sunni lawmakers and also Kurds. They appeared to be on the verge of an agreement to form a new government is key -- it is a key requirement of the U.S. for the U.S. to keep helping in the fight against ISIS. Sunni militants carried out a raid near Baghdad Sunday and seemed to be inching ever closer to the Iraqi capital.

HARLOW: Russia putting Ukraine on notice after a man was killed in cross border shooting. Russia is threatening, quote, "irreversible consequences." Kiev says its forces were not the ones who fired but fighting has increased since a separatist attack killed dozens of Ukrainian troops on Friday.

BERMAN: No breakthrough on the final comprehensive nuclear deal between Iran and the West. European Foreign ministers say discussions have been useful, but huge gaps remain. Tehran is asserting its rights for future enrichment with the U.S. and Europe insisting Tehran must scale back its activities. The deadline for a deal is Sunday. Now talks could be extended, but it would only be extended if there is real progress to report.

HARLOW: And after five years in captivity, Bowe Bergdahl is returning to life as an active duty U.S. soldier. That could happen today. That's according to the "New York Times." The former POW had finished therapy at an army hospital and is expected to begin working at Fort Sam Houston in San Antonio. He'll be living in an army barracks with two soldiers who will help with his re-integration process. Bergdahl is also expected to meet with the officer who's heading up the investigation into his disappearance in 2009.

BERMAN: As of now, Republicans refusing to go along with the president's plan to fix the immigration crisis unfolding at the border. Today Congress will continue to debate the president's $3.7 billion request. Many Republicans say the measure is too costly and needs to include tougher immigration laws in order to win their votes.

The White House has indicated it supports new laws to fast track deportation proceedings, but is not likely to reduce the size of the president's spending request.

HARLOW: Meanwhile, the White House spent the weekend meeting with dozens of governors seeking support from states that are being asked to host some of the thousands of Central American children who have crossed recently over the Mexican-U.S. border.

Some of those states not so receptive to the idea. In Escondido, California, the Planning Commission denied a permit to turn a former nursing home into a shelter for about 96 children. In Texas two communities passed resolutions banning the creation of shelter for the Central American children before anyone even suggested opening one there.

BERMAN: It's not just voters are fed up with Congress. The nation's governors are furious with the failure of Congress to come up with a spending plan for America's highways and bridges. The governors met over the weekend in Nashville calling on lawmakers to come up with a long-term solution to upgrading the nation's infrastructure. Many of the governors calling for an increase in the gas tax to do this.

Right now the federal government lacks the funds needed for road repairs and construction projects. And can't pass a bill.

HARLOW: Wow.

BERMAN: Partisan fighting in Washington has stalled this process.

HARLOW: It continues. All right. Time for an EARLY START on your money.

Stocks in Europe and Asia both opening the week higher. U.S. futures pointing higher as well of our open here. Good news after the markets stumbled last week when the S&P 500 saw the worst week since April. But this week Wall Street's attention is squarely focused on those quarterly earnings numbers. One of the first on the docket this morning is Citigroup.

The megabank's report card may, though, likely be overshadowed by much bigger news. "New York Times" reporting this morning Citibank is expected to reach a $7 billion settlement with the Justice Department. That should be announced today according to the "Times" of course.

Last week, we told you that our sources confirmed the bank had reached that deal with the Department of Justice to settle charges that it knowingly packaged bad mortgages during the run-up to the financial crisis. The payout includes $4 billion in penalties. That will go to the Department of Justice. The remainder will go to mortgage modifications and homeowner relief.

BERMAN: All right. Breaking overnight, riots in Buenos Aires. This just hours after Argentina's 1-nil loss to Germany in the World Cup final. Look at this. Riot police firing tear gas and rubber bullets at vandals who interrupted a peaceful celebration of Argentina's best World Cup showing in 24 years. At least 60 people were arrested, 20 officers were injured.

It's a dumb way to celebrate the World Cup.

This was the end. Germany taking home the victory and the cup after a goal in the 113th minute from Mario Goetz. The last time the German's won the World Cup was 1990, also defeating Argentina in that game.

A wonderful game.

HARLOW: And you couldn't choose sides because your boys were on both sides?

BERMAN: I wanted both teams to win.

HARLOW: Like you always.

BERMAN: It was a moral victory for both teams, that's my official statement. If my boys are watching.

HARLOW: Happening today, storms from California to Maine, a polar invasion in the middle of the summer, bringing severe weather that will impact millions. We are tracking what you need to know, next.

(COMMERCIAL BREAK)

HARLOW: Millions of Americans this morning facing a severe weather threat. Just take a look at this map. A powerful cold front in the Midwest expected to trigger violent thunderstorms today and tomorrow. Flash flooding a major concern in parts of Colorado and New Mexico right now.

BERMAN: Parts of Ohio they're bracing for another round of damaging storms after getting pounded Sunday. An inch of rain falling on Columbus in less than 20 minutes. Powerful winds left behind a lot of damage.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I have never seen anything like this before in my life.

UNIDENTIFIED MALE: I ran out, grabbed my front door and shut it, and I came inside. And I held my front door shut. All of a sudden, I'd seen roofing flying off everywhere and trailers were rolling over.

(END VIDEO CLIP) HARLOW: Take a look also at this scene in upstate New York. Buildings damaged, power lines and tress down in Watkins Glen. Officials trying to officially confirm whether a tornado touched down or not during that violent storm on Sunday.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I heard like a high wind. And I was like, what is that? And she's really hard of hearing so she had no idea what was going on. So I stopped and I looked. I'm like 10 feet out into the water out in a canoe, and I look and I see the tornado was like, I just saw it tunneling down, and I'm like oh, my god.

(END VIDEO CLIP)

BERMAN: Look at the flooding in the Chicago area.

HARLOW: Wow.

BERMAN: That car should never be out there. Roads all over town were passable. Thunderstorms packing 60-mile-an-hour winds tore through the region, triggering the flash floods. The tornado watch was triggered as well. More severe weather is in the forecast for today.

HARLOW: And neighborhoods under water also this morning in Brinkley, Arkansas. They didn't need another storm over the weekend, but they got one. Up to 18 inches of rain have fallen in the area in just the past two weeks.

BERMAN: It's a deadly weekend at Rocky Mountain National Park in Colorado. One man died Friday night when the lightning hit him and three other people on a hiking trail. A 42-year-old Ohio woman was killed Saturday when her group of eight hikers also was struck by lightning.

HARLOW: Lighting also causing chaos at Disney World in Florida, knocking out power to one of the park's monorail lines. Firefighters had to evacuate 120 people on board. Disney officials, though, say no one was hurt.

BERMAN: And look at this in Tucson, Arizona. Monsoon strength storms slamming the city with winds clocked as high as 66 miles per hour. Well over an inch of rain fell with trees and power lines down all over town. Reports of severe property damage in several neighborhoods.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: And the wind was blowing so hard that it literally ripped the roof off and threw the insulation and everything down on the inside.

(END VIDEO CLIP)

HARLOW: The severe weather not close to over yet.

BERMAN: Jennifer Gray has a look at the forecast for today.

Any relief, Jennifer?

JENNIFER GRAY, AMS METEOROLOGIST: Not much. We still have that threat for severe weather. We're talking large hails, damaging winds, even the possibility of isolated tornadoes today and tomorrow. And here is the threat area including Memphis, Nashville, Louisville. Also looking at Washington, D.C., Philly and New York, all under the severe weather threat for today.

We're also talking about a lot of rain. We could see anywhere from two to three inches of rain from D.C., New York all the way up to Boston. This is through Wednesday. So today, tomorrow and Wednesday expecting the rain.

That cooler air, though, that you guys were mentioning, it's coming. In fact already starting to make its way into the Great Lakes area. We're going to see temperatures well below normal, right around 54 degrees starting out this morning in Marquette. This is your current temperature. Not setting records this morning, but we could get close, especially tomorrow morning, 63 degrees right now in Minneapolis and 60 degrees in Milwaukee.

So high temperatures over the next couple of days feeling very nice. The cooler air doesn't get to you in Chicago until tomorrow. We'll see a high temperature of 71 degrees, average is 85. So we're running about 15 degrees below normal.

And look at these low temperatures for the next few mornings in the 40s in Marquette. We are seeing temperatures in the 50s in Minneapolis and even dropping in the 50s in Chicago for the next couple of mornings.

So guys, it's going to be refreshing in July to get this change.

BERMAN: Yes. All right. Thanks, Jennifer.

HARLOW: Appreciate it.

Let's take a look at what's coming up on "NEW DAY."

Good morning, Chris Cuomo back in action after a hopefully nice vacation.

Good morning, Chris.

CHRIS CUOMO, CNN ANCHOR, NEW DAY: It was indeed. It was indeed. But I have come back to find a very troubling situation in the Middle East. The situation there going the wrong way. The death toll is rising in Israel as bombs keep coming in from Gaza and of course bombardment keeps being returned by the Israelis.

Now Israel putting out a warning to people there, leave your homes in targeted neighborhoods. So what are they doing? They are leaving, it's a mass exodus. There are many Americans involved. The big question, of course, is will there be a cease-fire? Who can

broker it? Usually, you'll see Egypt in this situation. Usually you'll see the United States obviously in this situation. Do they have the pull this time?

And as we've been discussing this morning, rough week of weather in July? I mean, I think we'd be talking hurricanes, right? But no. Very cold in areas normally sweltering this time of year.

Also storms are going to be blowing through the east. What is going on here? We are going to break down the weather pattern, tell you what you need to know, all for you, my friends.

BERMAN: Great to have you back, friend. Thanks so much.

CUOMO: The pleasure is mine.

HARLOW: All right. Breaking news this morning. A mysterious odor causing hundreds to be evacuated overnight. What has authorities so concerned? That's ahead.

(COMMERCIAL BREAK)

HARLOW: Breaking overnight, a mysterious odor forcing officials to evacuate more than 150 people in Skippack, Pennsylvania, that is near Philadelphia. Many of them were transported to local elementary school.

Residents first started smelling a gas-like odor last night. Hazmat crews were called in to check on homes one by one. They are reporting high readings of hydrogen cyanide in many of the homes. Officials still don't know what's causing it.

BERMAN: An emotional farewell to a Texas family killed in a brutal massacre. Fifteen-year-old Cassidy Stay, the lone survivor of the mass shooting that killed her parents and siblings, was on hand to honor her family members during a memorial service over weekend. Stay spoke out thanking first responders, doctors, and the hundreds of supporters on hand who had attended that ceremony.

(BEGIN VIDEO CLIP)

CASSIDY STAY, SHOOTING SURVIVOR: In "The Prisoner of Azkaban" Dumbledore says, "Happiness can be found even in the darkest of times if only one -- if one only remembers to turn on the light."

I know that my mom, dad, Brian, Emily, Becca and Zach are in a much better place and that I'll be able to see them again one day.

(END VIDEO CLIP)

BERMAN: Just stunning and inspiring strength. Cassidy played dead after accused gunman Ronald Lee Haskell shot her, her parents, four siblings face down on the floor in what investigators say was an execution style killing. HARLOW: And a frightening night in the Boston suburbs of Beverly. A

three-alarm fire breaking out in a house that was under construction forcing neighbors to flee their homes. The flames spread to two nearby houses, also causing damage to several others. Look at those images. There are no reports of injuries. Thank goodness. Officials still don't know how that fire started.

BERMAN: Developing this morning, six people suffering minor burns after a fire broke out in the Rockefeller Center Observation deck. High above New York. Officials say a camera caught fire on an elevated part of the observation deck sending embers on to the people below. One of the six injured was a child who was taken to a local hospital as a precaution.

HARLOW: And in Germany fans are still celebrating their World Cup victory over Argentina. It is the fourth World Cup win for Germany, their the first since 1990, when, don't you know, they also beat Argentina.

We get more from CNN's Alex Thomas in Brazil.

ALEX THOMAS, CNN SPORTS: John and Poppy, when the World cup was last held here in 1950, Uruguay was surprise winners beating the host nation in the final. Fast forward 64 years and no one is rubbing their eyes with disbelief. Germany has been the best and the most exciting team of this tournament. Well, then Argentina will ruin the chances their missed in the final. Gonzalo Higuain was the most blatant. But even their star man Lionel Messi, a four-time World Player of the Year, dragged wider shots that he would normally bury in the back of the net.

Germany dominated possession but the breakthrough only came in extra time when Mario Goetz scored a goal, beautiful enough to grace any major final. His depth, control and left foot volley sparking wild celebrations among the Germany supporters in Rio's Maracana Stadium and the millions watching back home.

The country's chancellor, Angela Merkel, was on hand to congratulate the players afterward. The core captain Philipp Lahm lifted soccer's biggest prize into the air.

Germany's fourth World Cup triumph was record breaking. After Spain's victory in 2010 and Italy's in 2006, this was the first time a team from the same continent has won three World Cups running.

And John and Poppy, it's the first time a European side has won it in South America.

HARLOW: It is indeed, in the Americas at all.

BERMAN: Mexico and U.S.

HARLOW: As John informed this morning.

BERMAN: Never happened before.

HARLOW: Say it, John.

BERMAN: Mario Goetz.

HARLOW: He's been making my morning.

BERMAN: He is this tall. The guy is like this big.

HARLOW: And 22.

BERMAN: He's like 22. He's a kid.

HARLOW: Wow.

BERMAN: He's going to play like 14 more World Cups.

(CROSSTALK)

HARLOW: Whose name will go on forever.

All right. Coming up, bicycle seats on airplanes? This is not a joke. It could mean less room for you and of course more profit for the airlines. Is this, could this be the future of flying?

BERMAN: Chaffing. Bicycle seats. I think chaffing.

HARLOW: Find out next.

(COMMERCIAL BREAK)

HARLOW: All right. Let's get an EARLY START on your money. Stock futures here in the U.S. pointing higher ahead of the open this Monday. Good news after the market stumble last week when the S&P 500 saw its worst week since April. Stocks are still of course, though, near record highs. And corporate America's report cards may push them higher.

Big names in banking and tech reporting their quarterly earnings this week on the docket. Companies including Citigroup, JPMorgan, Google and IBM. Analysts telling CNN Money tech should be the star of the earnings parade this week. Banking may only suffer from some lower volume in trading.

How far will airlines go? Get this, to squeeze in more passengers.

BERMAN: Too far.

HARLOW: How about -- way too far, according to Berman. How about cutting out tray tables, headrests, giving very little legroom? Take a look. That is the new seat design that French airline company Airbus submitted for a patent over the weekend. The application seat invention would reduce the bulk of a typical seat, increasing the number of passengers but do not expect this to appear on your plane anytime soon. An Airbus spokeswoman told the "L.A. Times", quote, "Many, if not most of these concepts will never be developed." They are really just -- now these patent filings are simply conceptual.

BERMAN: They can't do this.

HARLOW: It's an idea. If it comes to fruition, they want to have the patents on it.

BERMAN: Because they're too comfortable. Airplanes, these are too comfortable right now.

HARLOW: Far. Far.

BERMAN: So you've got to make them less, though.

HARLOW: Far too much room. The future fine, folks, maybe.

All right. You know Crumbs?

BERMAN: Yes.

HARLOW: Crumbs?

BERMAN: Yes.

BERMAN: People were very upset to hear this company was going under.

BERMAN: Very upset.

HARLOW: Well, maybe they're not over. Just days after a massive default forced the cupcake maker to shutter its own stores, all of them actually, an investment group swooped in to offer the bakeshop a second chance. The group included CNBC host Marcus Lemonis and also the owner of Dippin' Dots Ice Cream.

They offered to buy Crumbs as part of that bankruptcy filing. The bakeshop may reopen their 65 locations that closed or maybe it looked to open new ones. Crumbs CEO is also saying they may pursue a franchise model.

Hopefully for them and all their employees, something works out.

BERMAN: Good news in the world of Crumbs.

HARLOW: Indeed.

BERMAN: Thanks so much for watching. "NEW DAY" starts right now..

CHRIS CUOMO, CNN ANCHOR: Breaking this morning, Middle East exodus. Thousands of Palestinians fleeing Gaza. Hundreds of them Americans. Israel ramping up its bombing campaign.

Can the U.S. or anyone broker peace this time? We're live with the latest.

KATE BOLDUAN, CNN ANCHOR: Polar plunge. Temperatures across the Midwest set to hit chilly new lows as wild weather sweeps across the nation. Mass flooding, lightning striking twice, killing two in the same park. And Disney's monorail evacuated overnight due to weather. MICHAELA PEREIRA, CNN ANCHOR: Caught on tape. The moment a pregnant

woman has to jump from a burning building. The people below ready to catch her. The video you have to see.

CUOMO: Your NEW DAY starts right now.