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EARLY START
Crisis in Yemen; ISIS Hit List: U.S. Military Officers Targeted; Senator Ted Cruz Announces Presidential Run. Aired 4:30-5a ET
Aired March 23, 2015 - 04:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
CHRISTINE ROMANS, CNN ANCHOR: Trouble for the U.S. war on terror. A key Mideast ally on the brink of civil war. Yemen in crisis this morning. We are live.
The ISIS hit list. U.S. military officers becoming targets as we learn of new help coming to the terror organization.
[04:30:01] We're live in Baghdad ahead.
The 2016 presidential campaign, it has begun, folks. Texas Senator Ted Cruz officially running for the Republican nomination.
Welcome back to EARLY START. I'm Christine Romans. It's Monday morning. Thirty minutes past the hour. John Berman is in D.C. this week.
Happening now, Yemen is in crisis, as the U.S. pulls the last of its forces, about 100 special operations troops out of that country in response to the deteriorating security situation there.
The chairman of the House Homeland Security Committee warning of the dangers posed by losing Yemen as a base for U.S. counterterrorism operations.
(BEGIN VIDEO CLIP)
REP. MICHAEL MCCAUL (R-TX), HOMELAND SECURITY COMMITTEE CHAIR: We will have no intelligence footprint or capabilities to monitor what AQAP and ISIS and the Shia militants are doing in the region. And without -- you know, good intelligence stops plots against the homeland. Without that intelligence, we cannot effectively stop it.
(END VIDEO CLIP)
ROMANS: On Sunday, Houthi rebels opposed to Yemen's president seized an international airport in the city of Taiz.
Meanwhile, the U.N. Security Council met in an urgent session, backing Yemen's president, calling on all sides to put down their weapons and negotiate. A U.N. official warning that Yemen is in a, quote, "rapid downward spiral", and at, quote, "the edge of civil war".
For the latest, let's bring in senior international correspondent Nic Robertson.
Nic, this is a pretty grim picture this morning.
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It's really grim, Christine. And one of the reasons that it's particularly grim is al Qaeda in Yemen has a history of perpetrating and planning to perpetrate the most sophisticated attacks yet on the United States. The under pants bomber was an effort to bring down an airliner in Detroit in 2009.
The bomb maker there is perhaps the best bomb maker that al Qaeda has globally and they target the United States. The year 2000, the USS Cole attacked by al Qaeda, 17 service people died in that particular attack.
So, what you have right now is an environment where al Qaeda can thrive. It is an environment where ISIS is thriving. We saw what they did on Friday. They attacked two mosques close to the capital, killing more than 130 people, wounding hundreds of others in twin suicide bombing attacks. You have the Houthi rebels who ISIS and al Qaeda are fighting. You have the Houthi rebels taking control of the third largest city or at least significant parts of the airport, government buildings as they continue to push to the south where the internationally recognized president is, President Hadi. The U.N. Security Council meeting on Sunday in an emergency session, they gave -- the U.N. Security Council gave full support for President Hadi, but he appears to be in a precarious position right now as this escalation to civil war continues.
And perhaps most troubling is we have the potential here for repeat of what we've seen in Syria and Iraq. That is when you pull out, you know, the last remaining of the U.S. Special Forces there, the last pulled out over the weekend, an environment exists within this escalating civil war for ISIS and al Qaeda to get stronger. And that's exactly what they did in Syria and that's exactly the advantage they are looking to take in the situation right now.
ROMANS: So, Nic, we know that the 100 -- those last 100 Special Forces are out of there. Do we know if it is still possible to stage reconnaissance and counterterrorism mission there? I mean, the diplomats have been gone for some weeks now. It seems as though the U.S. can't just leave this -- can't just completely leave this country to disintegrate.
ROBERTSON: You know, what we have seen over the past couple of weeks is an escalation in the number of al Qaeda attacks. There are reports that al Qaeda prisoners have broken out of two principal prisons, which gives them greater flexibility on the group. So, yes, you do have -- there is a extra strategic airstrip just outside out of Yemen, on the Saudi side of the border, Djibouti not far away. There's a strategic airstrip that can be used for drone overflights.
But, of course, you know those overflights are most valuable when they have precise and accurate information from the ground. Now, we know there have been spies working for different agencies on the ground. Probably some of those remain. It is harder for them to operate and harder to get that good information.
ROMANS: Yes, it's so difficult. OK. Nic Robertson, thanks for that.
This morning, the FBI and military investigators are looking into a purported hit list of U.S. troops posted online by previously unknown group claiming affiliation with ISIS. It's called the Islamic States Hacking Organization. The group has posted the names, pictures and addresses of U.S. troops.
There are also reports that a group of foreign medical personnel traveling to Syria, to work in ISIS controlled hospitals. A Turkish lawmaker tells CNN that a group of 11 includes seven Britons, an American and a Canadian.
[04:35:01] Joining us from Baghdad with more, CNN's Jomana Karadsheh.
Good morning, Jomana.
Let's start with the 11 medical students. Their families must be very concerned about what is motivating their children and what their children are doing with ISIS.
JOMANA KARADSHEH, CNN CORRESPONDENT: Absolutely. A very concerning development that we are hearing in the past 24 hours. The story emerged out of Turkey. A Turkish member of parliament, as you mentioned, he's a member of the opposition there, and he tells us the group of 11 individuals, men and women, young medical students, three of them and eight others are fresh graduates. They were studying medicine in Sudan. They arrived in Turkey last week, and from there, this member of parliament says they crossed into Syria, working in hospitals in ISIS-controlled areas.
Now, we are trying to verify this information, trying to get more on their whereabouts and their motivations that are very unclear at this point. Now, this Turkish member of parliament is telling British media that their families reached out to him and asked him to help track their children down in Syria in an effort to bring them back from Syria. But he says they are convinced they went to work for is and they have been, quote, "brainwashed and cheated".
Now, this is something we are really working and digging to find out more about and we, o course, also spoken to the British foreign office, Christine, the government that is commenting at this point. They say that they are aware of these reports and that they are providing consular assistance to the family members and they also reached out to the Turkish police and informed them of this situation.
The family members are seven mothers and fathers currently on the Turkish side of the border. They are there in a campaign to try and convince their children to come back home -- Christine.
ROMANS: It's just more evidence of that strange allure of the jihadi narrative that is resonating with some of these young people in Western countries.
Let me ask you quickly about the hit list of 100 U.S. troops, their names, addresses and pictures posted online by a group that we haven't heard of before.
KARADSHEH: It's an unheard of group calling itself the Islamic State Hacking Division. They claim they hacked databases and got the names, addresses and pictures of U.S. military personnel, about 100 of them. And they have called for attacks on them inside the United States.
Now, there has been skepticism about the threat. Of course, jihadi groups are very tech savvy. They are able to search social media sites and collect such information.
Now, the U.S. government and agencies are taking this seriously as any they would with any threat, because this has been a concern. This sort of, you know, encouraging lone wolf attacks to take place. They say that they are reaching out to the personnel who are mentioned in this threat. The threat has been taken down these Web sites so far. And they are also investigating the threat. A lot of skepticism so far, but taking it seriously as you would with any such threat, Christine.
ROMANS: Jomana Karadsheh in Baghdad for us -- thank you this morning, Jomana.
The president of Tunisia announcing a manhunt underway now for a third attacker who escaped last week's museum massacre. Two other gunmen were killed by police after they killed 21 people, mostly tourists. One tourist who survived, she is back home in Florida this morning.
Listen to Giovanna Gonzalez described what it was like inside that museum.
(BEGIN VIDEO CLIP)
GIOVANNA GONZALEZ, SURVIVOR: We have to run like crazy. The first thing we heard a bomb. And then him shooting. It was a tragedy. It was something that -- he marked my life forever.
I thank God I'm here. Just go ahead and have my family, and see my mom, see my daughter. And I'm happy to be home.
(END VIDEO CLIP)
ROMANS: Happy to be home. Since the attack, Tunisian authorities have arrested more than 20 suspected extremists in a nationwide security sweep.
To those nuclear talks with Iran now. They are entering their final critical week, substantial progress is being reported. But Secretary of State John Kerry says there are still gaps remaining. Talks resume in Switzerland on Wednesday. They're scheduled to last through Sunday.
Now, if those sides can work on a framework for the deal, they'll spend three more months filling in the details. The deadline for a comprehensive agreement is set for the end of June.
Ted Cruz is making it official. The Republican senator from Texas becoming the first candidate to announce a bid for the White House in 2016. He tweeted overnight, "I'm running for president and I hope to earn your support." Cruz is expected to follow-up that tweet with a declaration speech at Liberty University today. The voice of the Tea Party starts the race trailing potential candidates Jeb Bush and Scott Walker in the polls.
[04:40:04] Time for a start on your money this Monday morning. U.S. futures down after Friday's big gains. The NASDAQ closed above 5,000 for only the fourth time in history. It is now within the striking distance of its March 2000 high during the dot-com bubble. Remember then?
Starbucks customers who will no longer see "race together" written on their cups. The coffee giant has ended its effort to spark conversation about race with the written message or stickers. The initiative was launched just a week ago.
In a letter to employees, Howard Starbucks CEO rather, Howard Schultz, wrote, quote, "While there has been criticism of the initiative and I know this hasn't been easy for any of you, let me assure you that we didn't expect universal praise."
Other parts of the initiative continue, like hiring 10,000 unemployed young people over the next three years. But a lot of coffee drinkers did not appreciate Howard Schultz's personal views in their morning cup of Joe.
Tensions rising between the White House and Israel this morning. President Obama with new concerns about being able to work with Prime Minister Benjamin Netanyahu, as Israel works to put its own influence on any possible nuclear deal with Iran. We are live in Jerusalem, next.
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ROMANS: The White House has all but given up on Benjamin Netanyahu as a willing partner in the Middle East peace process this morning. President Obama saying he took the Israeli prime minister at his word when Netanyahu said there would never been a Palestinian state under his leadership.
[04:45:07] Now, that's despite Netanyahu's effort after winning reelection last week to backpedal and then reassert his support for the two-state solution.
CNN's Erin McPike has more from the White House.
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ERIN MCPIKE, CNN CORRESPONDENT: Christine, President Obama told "The Huffington Post" that he believes achieving a two-state solution won't be possible under Benjamin Netanyahu because he says the Israeli prime minister reversed himself under comments that he had made prior to his re-election last week.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I did indicate to him that we continue to believe that a two-state solution is the only way for the long term security of Israel if it wants to stay a Jewish state and democratic. And I indicated to him that given his statements prior to the election, it is going to be hard to find a path where people are seriously believing the negotiations are possible.
MCPIKE: Obviously, it doesn't sound as though the air is going to be cleared on that anytime soon. Now, on another matter, the president also had sharp words for Senate Republicans who are holding up the confirmation vote for attorney general nominee Loretta lynch due to differences on a completely different bill.
OBAMA: You don't hold attorneys general hostage for other issues. This is our top law enforcement office. Nobody denies that she is well-qualified. We need to get her done.
SAM STEIN, THE HUFFINGTON POST: And is Eric Holder prepared to stay as long as possible?
OBAMA: Yes, he is. And the irony is, of course, the Republicans really dislike Mr. Holder. If they really want to get rid of him, the best way to get rid of him is to get Loretta Lynch confirmed.
MCPIKE: Of course, both of these issues will be front and center for the White House this week, Christine.
(END VIDEOTAPE)
ROMANS: All right. Erin McPike, thanks for that from the White House.
And now, senior Israeli officials telling CNN they believe the real reason President Obama won't take Netanyahu's word that he still supports a Palestinian state is that they say the White House wants to divert attention from the developing nuclear deal at negotiations in Switzerland. Meanwhile, Israel is seeking to influence those negotiations, sending a senior delegation to Paris for talks with French officials today.
Let's bring in CNN's Oren Liebermann live from Jerusalem for the latest.
And just listening to that "Huffington Post" interview with the president, it is clear the relations are strained between these two leaders.
OREN LIEBERMANN, CNN REPORTER: Christine, the back and forth between these two leaders, between President Obama and Benjamin Netanyahu continues. We saw it really start or at least we saw this latest round really start with Netanyahu's speech before Congress. It continues to this day.
The administration here and prime minister's office insisting that Benjamin Netanyahu never really switched positions, that his contradictory statements weren't contradictory at all. President Obama not buying it. And as you said, the relationship between these two leaders, a few
weeks ago we thought it an all-time low, and yet it seems to find its way lower. Christine, we already know Netanyahu's next play will be or at least one of his next plays, and that is when House Speaker Boehner comes here at the end of the month when the nuclear deal with Iran deadline comes up.
ROMANS: Let's talk about the Israeli prime minister hoping to accomplish in Paris by sending a delegation there, and by this whole notion that the U.S. is trying to divert attention away from its Iran deal.
LIEBERMANN: Well, it seems that the Netanyahu administration here realizes they cannot stop a deal. It's not within their power to end the negotiations and to make sure there's no deal. Instead now, it looks they are trying to influence that deal.
And you can see Netanyahu's speech before Congress as a way to influence the American side. Now, in the other hand, we have the intelligence minister from Israel, heading to France to talk to the delegation there, trying to influence it from the French side.
So, it seems as if Netanyahu's office realizing the best way to make sure Israel's interests remain within the scope of negotiations is to try to influence the players in these negotiations, Christine.
ROMANS: All right. Oren, thank you so much, live from Jerusalem this morning.
A new criticism of a controversial arrest that left a University of Virginia student battered and bloody, the chief of police in that town now on the record. We'll tell you what they said, next.
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[04:52:48] ROMANS: The Charlottesville, Virginia police chief says the video of a bloodied University of Virginia honors student being arrested outside of a bar last week is, quote, "disturbing". State police are now investigating the incident involving 20-year-old Martese Johnson. The Alcoholic Beverage Control Officers who made that arrest described Johnson as belligerent. But one of the bar owners who turned him away is now contradicting that claim.
CNN's Nick Valencia has more.
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NICK VALENCIA, CNN CORRESPONDENT: Christine, the co-owner of the bar where 20-year-old Martese Johnson was denied entry is now speaking out via a statement from his attorney. He said he wanted to get out in front of the rumor mill and wanted people to know in his own words what his reaction was when he was denied entry to Johnson. Kevin Badke says while police described Johnson as belligerent, that his conversation with the 20-year-old was cordial.
In that statement from his attorney, he said, in Badke's opinon, Mr. Johnson did not appear to be intoxicated in the least. Despite the conversation which was cordial and respectful, Mr. Badke reiterated that he could not permit him to enter. He handed Mr. Johnson his ID back and Mr. Johnson began walking in the northwesterly direction of University Avenue. A few moments later, he heard a commotion and turned and saw Mr. Johnson on the ground 30 feet up on University Avenue with ABC agents detaining him.
Officially, in a police report, Johnson was arrested for public intoxication and obstruction of justice without force. His court date is set for later this month -- Christine.
(END VIDEOTAPE)
ROMANS: All right. Nick Valencia, thanks for that, Nick.
OK. Quiz for you, folks. What's the best performing investment since President Obama took office? Is it gold? Maybe it's real estate? Stocks? What do you think?
An early start on your money, next.
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[04:58:02] ROMANS: All right. It is almost top of the hour. Let's get an early start on your money this Monday morning.
Asian shares ended their trading day higher, but European shares are falling ahead of a meeting between leaders of Greece and Germany over Greece's bailout program. U.S. stock futures also down a little bit. You know, stocks climbed on Friday. The NASDAQ closed above 5,000 for only the fourth time in history. It is now within striking distance of its record high from March 2000 during the dot-com bubble.
All right. It's been just over six years since President Obama took office. So, which assets have done the best in his tenure? You might be tempted to say gold or commodities, or even the U.S. dollar has done well.
But stocks are the clear winner so far under this administration. The stock market bottomed out in March of 2009. It's been climbing ever since. We are in the midst of the fourth longest bull run ever. The returns for stocks have not been anywhere near the good -- near this good since the days of President Reagan. If this rally continues, it could be the third longest stock bull run ever.
Millennials have the highest student loan debt in history. But there are ways to avoid that trap.
Here are the ways to make sure you don't get killed by your student loans. Number one: graduate in four years. Did you know, only 39 percent of students graduate in four years? That's an expensive extra year or two on borrowed money.
Number two, be realistic about future earnings. Use this rule of thumb. You can only afford to borrow as much as you expect to earn your first year working in your field. You can't borrow more than that.
And third, don't miss any student loan payments. Once you are in default, it's next to impossible to discharge those in bankruptcy and it's harder to qualify for student loan forgiveness programs, payback programs.
For more advise on student loans, check out my new book, "Smart is the New Rich: Money Guide for Millennials". Folks, it lands in book stores today. Thanks for listening.
EARLY START continues right now.
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ROMANS: A big blow to the war on terror this morning. One of America's biggest Mideast allies on the brink of civil war.
