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EARLY START

Outrage over Police Shooting; Crisis in Iraq; Cease-fire in Gaza

Aired August 11, 2014 - 05:30   ET

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


(COMMERCIAL BREAK)

JOHN BERMAN, CNN ANCHOR: Crisis in Iraq. This morning, the U.S. removing staff from its embassies in towns threatened by the terrorists. American led air strikes are helping in the fight against the militants. But now, the country is facing another problem, its own government, it is on the brink of collapse. We are live with the very latest this morning.

CHRISTINE ROMANS, CNN ANCHOR: A new temporary truce in Gaza. Israel and Hamas agreeing to cease-fire and continue their negotiations for a long-lasting peace. But after several failed attempts is there any hope this one will take? Live team coverage ahead.

BERMAN: And then breaking news this morning. Violence in the streets of a quiet Missouri town. Vandalism, looting, gunfire and angry crowd protesting the police shooting of an unarmed black teenager. New video coming in overnight. We'll have that just ahead.

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

ROMANS: I'm Christine Romans. It is 30 minutes past the hour. And a very, very busy start to your week. Let's begin with this peaceful candlelight vigil that turned violent in a St. Louis suburb. People hurling bottles at officers, attacking police cars. Hundreds of protesters showing their anger over the shooting death of 18-year-old Michael Brown at the hands of police Saturday.

There are differing accounts of exactly what happened. Witnesses say Brown was unarmed and did not instigate the shooting. But Police say there was a physical confrontation with an officer and a struggle over his weapon. The police chief says Brown was shot 35 feet away from the police car but then declined to give more details saying he didn't want to prejudice the case.

Brown's mother could not contain her anger.

(BEGIN VIDEO CLIP)

LESLEY MCSPADDEN, VICTIM'S MOTHER: You took my son away from me. You know how hard it was for me to get him to stay in school and graduate? You know how many black men graduate? Not many. Because you bring them down to this level where they feel like they don't got nothing to live for anyway. They are going to take me out anyway. (END VIDEO CLIP)

ROMANS: George Howell joining us by phone from Ferguson, Missouri, this morning.

And, George, when you hear that distraught and angry mother, that is pretty much the voice and the sentiment that was running through those streets last night for these protests. Tell me what happened.

GEORGE HOWELL, CNN CORRESPONDENT (via phone): You explained it very well there. That is exactly the case. There is a lot of outrage in this community about what many people believe to be an injustice. But again, police have a different account. They say that this was started by a physical altercation.

Whatever the case, fair to say it has been one hell of a night. We left several hours. We know that there's been a lot of looting. And the looting continued up to this point. Police did their best to basically hold the ground, hold their ground, and we saw protesters.

Many protesters who came out here hoping to take a stand against police, but to do it in a peaceful way. Some then pushed their limits, getting in the faces of police officers. But then we saw things degenerate. We saw some people came into the situation, simply looking to cause trouble. And that's what they did. We saw people breaking into stores. We saw people throwing bottles, throwing rocks.

There were shots fired many times. Myself and photojournalist Jordan (INAUDIBLE), we had to take cover. We had to get out of the way. It was a very chaotic scene. Again, the greater purpose here, and many people hoping to send a message and take a stand against what they believe was a wrong that was done here. We are still waiting to get more information from police.

But again, what we saw, these images here in Ferguson, the violence, the looting, certainly not what the people who organized that peaceful protest wanted to see happen here.

ROMANS: Certainly. And the pictures that we're seeing right now of, you know, people bringing things out of stores, looting -- apparently looting stores here, obviously you don't honor a young man's life and his tragic death by looting. It shows, however, just -- how unstable things are on the streets right now in Ferguson, Missouri.

Have things quieted down there? It must be 4:30 in the morning your time.

HOWELL: Yes, and again, you know, as I mentioned, I spoke with a gentleman who was just in the area here in the last hour. What we know at this point, the crowds that you've seen in the video, the crowds had dispersed. There are fewer people on the streets. Police have basically blocked off many of the roads on this main street through Ferguson. So they have brought calm back to the situation.

What we know this morning, there will be another rally. It will be a peace rally that's set to happen at 10:00 a.m. local time, right in front of the police department. That is where we're presently staging and setting up for live coverage today on CNN. But the last peace rally started peacefully and degenerated into what we've seen over the last several hours. And the hope is that that doesn't happen again.

ROMANS: And just quickly, George, you said you heard -- you had to take cover, you heard gunshots. Were those gunshots in the crowd? Were they from police? Is it possible to see where they came from?

HOWELL: No way to tell, really. And we reached out to the police chief. We reached out to several officials trying to confirm if it was from them. Initially, we were told that it wasn't. After that, we haven't heard back.

Fair to say, there were some cases where people and the crowds, according to one officer that I was standing with, one person in the crowd apparently started shooting. We didn't see it, we heard it. And you hear these gunshots behind you. You hear them down the street from you. I mean it was the sort of thing that just kind of played out and happened throughout the night.

You know, what we did was we stayed behind the police line as things became chaotic. Again, it was a real chaotic scene.

ROMANS: George, it sounds tense and it also sounds dangerous. And just -- was froth with emotions so be careful and we'll watch your coverage as the day unfolds on CNN.

HOWELL: Thank you.

ROMANS: George Howell in Ferguson, Missouri, for us this morning.

BERMAN: Meanwhile, U.S. airstrikes may be helping to level the battlefield a little bit in Iraq. President Obama promising that these airstrikes could go on for months. U.S. planes and drones did take out several ISIS targets in Irbil on Sunday. The Kurdish forces now making some significant gains recapturing two towns from the Islamic extremists less than 30 miles away from Irbil.

Iraq's government, though, is reeling. The prime minister, Nouri al- Maliki clinging to power. The U.S. has essentially broken ties with him rather -- instead supporting Iraq's president.

Let's go to Anna Coren now live from Irbil this morning. Not far from where the fighting between ISIS and the Kurds is going on.

And, Anna, the U.S. is pulling out some of its diplomatic service members from the city where you're standing right now.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yes, we got word of that over the weekend, John, that they were going to pull out non-essential staff from the consulate here in Irbil. Obviously when President Obama said that they were going to conduct those airstrikes, the objective being that they would protect American personnel in Irbil and also in Baghdad and obviously to stop the potential genocide taking place -- that could take place, I should say, on Mount Sinjar. Airstrikes, as you said, have been happening over the weekend. And

they did hit numerous ISIS targets allowing Kurdish forces to reclaim two towns within 20 miles of here that ISIS had taken over several days ago.

Those airstrikes also allowing Kurdish forces to create a safe passage for many of the Yazidis that are stuck on that mountain. They fled their homes in Sinjar when ISIS was coming. They knew they would be slaughtered if they stayed. So they took to the mountain, no food, no water, no shelter. And they have been there for days.

Twenty thousand of them managed to get off from one side of the mountain but there are still tens of thousands that are trapped there, surrounded by those Sunni militants. And we're hearing from U.S. official that it could take weeks for a ground operation carried out by Kurdish forces to actually free those people.

So this is definitely an ongoing situation. Obviously captured the world's attention. Those humanitarian aid drops are essential. There have been three from the United States, one from Britain. And the French, they are also here to take part in trying to help out in this humanitarian disaster that many are actually calling a catastrophe -- John.

BERMAN: Catastrophe, a humanitarian crisis going on during the military battle and then this political crisis in Baghdad vying for leadership down there. We're following all of that.

Anna Coren in Irbil, thanks so much.

ROMANS: All right. It's quiet again in Gaza for now. The Israelis and Palestinians agreeing to another 72-hour cease-fire with the Israeli negotiators showing up in Egypt just hours ago.

Want to get the latest on those negotiations in Cairo. I want to bring in Reza Sayah.

What can you tell us about where they stand now and what the hope is here? I mean, there's a lot of bitterness and animosity on both sides. Just getting the rockets and the missiles to start stop is a really a remarkable feat. Can it last?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Yes, Christine, obviously the hope is for resolution to this conflict, it has never happened, but they are going to give it another shot. The Palestinian delegation is here already. They have been here for a week. They never left, even after last week's cease-fire talks fell apart.

There were some reports that the Israeli delegation is here. We're working to confirm that with the Egyptian government. We do know at this point that the negotiations have yet to start today.

All of this happening after another 72-hour cease-fire went into effect midnight Sunday local time. The cease-fire proposal put forth by the Egyptian government. There was a lot of back and forth between the two sides. The Palestinians saying they're ready to talk. The Israelis saying we're not going to talk until the Palestinians stop firing rockets.

Eventually both sides agreed to negotiate, once again. Once again, we look at the clock. The deadline for this cease-fire, Wednesday, 12:00 p.m. midnight. Obviously these two sides don't trust one another. They often accuse one another of negotiating in bad faith. They have rarely, if ever, made any concessions with one another. And rarely, if ever, admitted they've made mistakes. Terrible conditions for conflict resolution, Christine, but again, they are going to give it another shot in the next couple of days.

ROMANS: Give it another shot.

All right, Reza Sayah. Thank you for that, Reza.

BERMAN: Up until the last minutes before this morning's cease-fire took effect, Hamas was launching rockets into Israel. The Israelis were responding with airstrikes in Gaza. More than 1900 Palestinians have already been killed with more than 70 percent of those fatality civilians. That's according to the United Nations.

Our John Vause is in Gaza this morning.

John, it does look and sound like it is quiet.

JOHN VAUSE, CNN SENIOR INTERNATIONAL CORRESPONDENT: It is very quiet, John. There have been no rockets flying from Gaza since midnight local time. No Israeli airstrikes either. And this lull is giving aid workers here a chance to actually get in and start doing some repair work, if you like.

We're being told by the Red Cross that they have now managed to fix six of the 10 transmission lines which bring electricity from Israel into Gaza. That means that there is now up to seven hours of electricity every day for most people here in Gaza. Also they're bringing not just medical supplies, but medical workers because the doctors here in Gaza have been working pretty much 24/7 for almost the last month treating thousands of people who have been wounded.

Also, bringing in water supplies and other medical equipment, that kind of thing. So there is aid coming in. There is work being done. There's an still issue with trying to fix the running water, the sanitation system. But it is all just temporary, this is relief work. There is still that huge job of actually looking at where do you start in trying to repair Gaza after so much damage has been inflicted on so many people here -- John.

BERMAN: So much work and all they're getting right now are these 72- hour increments to get it started before it has to stop again with more fighting. Let's hope this time they get a little bit of longer period.

John Vause, from Gaza this morning for us -- thanks so much, John.

ROMANS: All right. Forty-two minutes past the hour time for an EARLY START on your money this Monday. Stocks higher around the world. Asian shares ending the day with big

gains. European stocks higher right now, too. Two political risks have been weighing on markets are easing a bit at least the perception is. And that's sending stocks up.

U.S. futures pointing higher after what's been a pretty bumpy ride, quite frankly. Many thought these recent swings were the start of a true correction, a 10 percent drop. It would have been the first since 2011. But stocks they have remained resilient. Even with all these rifts around the world. The Dow was only off 3.4 percent from its all-time high. The S&P 500 down 2.8 percent from its record close.

And, you know, a lot of people I follow and talk to in the markets, they've been saying they really wanted to see a real correction to refresh things, to make the bull market keep lasting, but instead, you only get these little pullbacks. We'll have to see what happens this week.

BERMAN: It's nice that all these people are rooting for things to be much worse. I'm glad that these are the people you follow.

Forty-two minutes after the hour. Tragedy on the racetrack to tell you about. Police investigating this morning after a NASCAR champion runs over and kills another driver. What investigators are now saying about Tony Stewart and this investigation, next.

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ROMANS: Welcome back. Police in upstate New York are investigating the tragic accident involving NASCAR star, Tony Stewart, at a sprint car race. Authorities are examining video that shows Stewart's car striking driver Kevin Ward, Jr., there he is, as he walked down the track apparently to confront Stewart after their cars collided. The 20-year-old Ward was killed.

(BEGIN VIDEO CLIP)

SHERIFF PHILIP POVERO, ONTARIO COUNTY, NEW YORK: This is, right now, being investigated as an on-track crash. And I don't want to infer that there are criminal charges pending. I would only say that the investigation, when completed, we will sit down with the district attorney and review it. But I want to make it very clear, there are no criminal charges pending at this time. This is an ongoing investigation.

(END VIDEO CLIP)

ROMANS: Stewart has released a statement saying, quote, "There are not words to describe the sadness I feel about the accident. My thoughts and prayers are with Kevin's friends, family, and everyone affected by this tragedy."

BERMAN: What a tragedy it is.

All right. Let's take a look at what's coming up on "NEW DAY." Kate Bolduan joins us this morning.

ROMANS: Hi, Kate.

BERMAN: Good morning, Kate.

KATE BOLDUAN, CNN ANCHOR, NEW DAY: Morning, guys. Great to see you. We're watching the breaking news coming out of Missouri. I know you are as well. Where violence and looting broke out after a vigil was held for a teenager there, who was shot and killed by a police officer. The community is outraged. And they are demanding action.

We are going to hear from the mayor as well as town officials about the chaotic night. Have they brought calm there yet? What's it going to look like in the light of day?

We're also going to be following the latest coming out of Iraq. A weekend of U.S. airstrikes against ISIS targets appear to be showing some success. Militants retreating from at least two towns there. But now all eyes are on the unfolding political crisis. Prime Minister Nouri al-Maliki denounced the country's new president over constitution saying he's violating the constitution.

How far will al-Maliki go, though, to try to hang on to power? Will it throw Iraq into deeper chaos?

Unbelievable. It's all unfolding. People kind of say they saw this coming, that Maliki would not be going quietly. We'll see just how far it goes -- John and Christine.

BERMAN: It's a political mess.

BOLDUAN: Absolutely.

BERMAN: Kate Bolduan, thanks so much.

BOLDUAN: Thanks, guys.

BERMAN: Forty-eight minutes after the hour. Dozens rescued after another rollercoaster freezes mid-ride. The dramatic video and the results after the break.

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ROMANS: A deadly wildfire is still burning in Washington state. The crews are starting to get the upper hand on about half of those fires. Fire officials say more than 1,000 homes and structures in central and eastern Washington are still threatened by these flames. And frankly, the weather forecast calls for more hot, dry, windy conditions. Not good for that situation.

BERMAN: Some trouble in paradise. Thousands still without power in Hawaii, following Tropical Storm Iselle. The big island took the worst of the damage. Residents there have been told to expect extended power outages and no running water. Rescuers on the island of Kauai found the body of a woman thought to have been died while hiking on Friday. The weakened Hurricane Julio has been downgraded now to a category 1

hurricane and is expected to bypass the islands.

ROMANS: All right. Investigators still trying to determine what caused a rollercoaster to suddenly stop on Sunday, trapping 24 people near at the top for almost five hours. This happened on the Joker's Jinx. That's the ride at Six Flags, amusement park in Upper Marlboro, Maryland. Luckily, the riders were trapped in an upright position. Seventeen adults and seven kids were rescued with no reports of injury.

BERMAN: I just don't know what to say when I see that. I mean, I can't imagine how much that just stinks.

ROMANS: I love rollercoasters because I love to be afraid for a very short amount of time and then get over it, think that I have somehow surmounted my fear. But sitting on top of there for five hours, not --

BERMAN: Not part of the thrill you're looking for.

ROMANS: All right. A warning about a new cool looking Facebook app. Thousands of users already infected trying to download it. That's right. What to watch out for, we've got that for you, next.

BERMAN: Have you been infected?

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BERMAN: It's the funk music. You have funk music. How did you get funk music? I've had meetings about getting funk music for my other shows. And "CNN MONEY" has got funk music.

ROMANS: When you're here long enough, you get the music, Berman.

BERMAN: Man.

ROMANS: Just stick with me, kid.

All right. Time for an EARLY START on your money. Stocks higher around the world. Asian shares ending the day with big gains. And European stocks are climbing as that geopolitical risks that have been weighing on the markets ease a bit.

U.S. futures are also pointing higher right now. It's a bumpy few weeks for stocks. I think it's fair to say. And many people thought these recent swings were the start of a correction. But stocks have been resilient and are not too far still from records.

For the record, the Dow is off 3.4 percent from its all-time high. The S&P 500 is down 2.8 percent from its record close.

All right. One way to see how Americans feel about the economy is vacation spending. And judging by recent data people feel good. Disney theme park revenue up 8 percent last quarter. The company credits increased spending on food and souvenirs and higher attendance.

The same story in Las Vegas. MGM which runs the Bellagio, the MGM Grand, the Mandalay Bay, a big jump in earnings. Only two years ago the company was struggling.

So there you go, Berman. When you look at how people feel, maybe you can see it in how they are vacationing.

BERMAN: It's a small world after all.

All right. Thanks for watching, "NEW DAY" starts now. Funk music. You have --

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to NEW DAY. It is Monday, August 11th, 6:00 in the East. And we're going to begin with the growing crisis in Iraq. U.S. airstrikes continue to pound ISIS militant positions in the northern part of the country. But there's a new problem. Political turmoil is raging in Iraq's capital.

KATE BOLDUAN, CNN ANCHOR: Ground troops and tanks have taken up positions in several Bagdad neighborhoods including near the U.S. embassy in an apparent show of force by the embattled prime minister, Nouri al-Maliki.