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EARLY START

Indiana High School Stage Collapse; U.S. Drone Strike Kills Two Al Qaeda Hostages; Weinstein Family Sought His Release; Italian Police Seeking 18 Terror Suspects; Police And Protesters Clash In Baltimore. Aired 5:30-6a ET

Aired April 24, 2015 - 05:30   ET

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


[05:30:12] JOHN BERMAN, CNN ANCHOR: And then breaking overnight, a big terror network bust, police targeting 18 suspects, including former body guards of Osama Bin Laden, we have new details breaking in just the last few minutes ahead.

Welcome back to EARLY START, everyone. I'm John Berman. It's 30 minutes past the hour. A lot of breaking news this morning, we are going to start in Indiana.

About two dozen student performers at Westfield High School were injured last night when the stage that they were dancing on, you can see them dancing here, this stage just suddenly collapsed. Take a look at the video.

(VIDEO CLIP)

BERMAN: That stage just completely gives way. Wow. The students who were standing close by and those who jumped in to help the rescue performers relayed what they saw.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: The pieces of wood began to collapse and a falling of faces. I just saw this shock and look of shock and the moan of silence after it collapsed. A moment of confusion and began screaming from parents and faculty and staff in a rush to the stage.

I personally was in shock because I just had watched approximately 20 to 30 people fall in a pit and it is still hitting me as to what actually happened.

UNIDENTIFIED MALE: There was this one girl who had like nails in her leg and she was taken out on a stretcher and stuff. There was another girl with a dislocated leg.

UNIDENTIFIED MALE: One woman about my age, she had a lot of scrapes and cuts on her face. Honestly, it seems to be from nails from the stage. That was the first person I helped out. I talked to her dad and got her out of there as soon as she could. I stayed down there and I tried to comfort a woman whose daughter was down there. I think she's fine.

(END VIDEOTAPE) BERMAN: Westfield Police say that the injured were taken to the hospital. The police chief says most of the injuries appear to be monitor. One student initially listed as critical will be OK. The cause of the stage collapse is still under investigation.

Developing this morning, the United States counterterrorism program is facing serious fallout after the president made the emotional announcement that two al Qaeda hostages, one American, two hostages were accidentally killed by a U.S. drone strike.

Among those killed on the January attack on an al Qaeda compound along the Afghanistan-Pakistan border, two aid workers, 73-year-old American Warren Weinstein and an Italian Giovanni Loporto.

For the latest, let's turn to CNN's Saima Mohsin covering this for us. Good morning, Saima.

SAIMA MOHSIN, CNN CORRESPONDENT: Good morning, John. If we talk about the fall out to this, of course, not just from the family, but reactions coming in from human rights groups and the Pakistani government refusing to talk late last night when the news first broke.

Both the military and the Pakistani government made no comments this morning. (Inaudible) a statement released expressing their deep grief and regret, and condolences to the family of Warren Weinstein. Saying that they respected him very much for the great work he did for the people of Pakistan.

But pointing out, too, and very carefully worded statement here, John, saying this only highlights the risks and the unintended consequences of using such technology, of course, referring to drone strikes.

A bone of contention between the Pakistani government and the United States for many years although many people will say that the Pakistani government knowingly allows the U.S. to carry out those strikes on its territory because it's reaching parts that the Pakistani government can't.

Now Human rights groups also weighing in a statement from Reprieve, that is a group that has lawyers representing Pakistani drone victims, people who have lost limbs or members of their family as a consequence of drone strikes in the tribal belt between Afghanistan and Pakistan.

They point out that this is not the first time a drone strike has gone wrong. It's simply the first time the United States has admitted to it. Some information now, John, that I want to share with you.

This has just come in to me. Connecting with a source that I've been in touch with for a number of years, who has been involved acting as an intermediary between the captors and the Weinstein family. By the way, that communication was only one way. The captors would contact my source.

[05:35:02] Learning throughout the morning, we have been discussing the proof of life that was given last summer, June, 2014, when a phone call was allowed between Warren Weinstein and Elaine, his wife, hoping for more proof of life in recent months.

Now just speaking to my source in the last hour, we have connected telling me more details, John, that worryingly, there were threats at one point that Warren Weinstein might be sent to Iraq.

This came shortly after the James Foley video, beheading video was released, and the captors threatened, we have an orange jump suit ready for him, a really horrible and striking thoughts and image there, John. A lot of grief as well both among (inaudible) and the family that Warren Weinstein was killed accidently in a drone strike.

BERMAN: Tough for that family to hear that type of information this morning. Saima Mohsin covering this for us, thanks so much.

The president says he takes full responsibility for the deaths of the two hostages. He offered his deepest apologies. The White House also had to explain why it took until Thursday to publicly disclose the killings which happened back in January?

Our senior White House correspondent, Jim Acosta, picks up that part of the story -- Jim.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John, President Obama said he authorized the disclosure of this operation as soon as his national security team was certain that these hostages were the accidental victims of this drone strike last January.

The president personally apologized to the families of hostages, American, Warren Weinstein and Italian aid worker, Giovanni Loporto. Mr. Obama also made phone calls on Wednesday to Weinstein's widow and the Italian prime minister.

This all unfolded back in January when the CIA conducted a drone strike on the suspected al Qaeda compound near the Pakistan border. That was ordered by the counter terrorism department, not the president.

After the operation, the officials say they had indications Weinstein was dead back in February, but only confirmed his death within the last several days. Here is what the president had to say about the operation.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: It is a cruel and bitter truth that in the fog of war generally and our fight against terrorists specifically mistakes, sometimes deadly mistakes, can occur.

But one of the things that sets America apart from many other nations, one of the things that makes us exceptional is our willingness to confront squarely our imperfections and mistakes.

(END VIDEO CLIP)

ACOSTA: The White House is not using the word drones and talking about this operation. Aides are defending these assaults knowing that the two terrorists, a leader from al Qaeda and Adam Gadahn were killed in the strikes. The president has ordered a review of the operation.

We understand the CIA inspector general is expected to be on the case as well as the intelligence committees in both the House and the Senate and the White House confirmed the families of these hostages will be offered compensation from the U.S. government for their losses -- John.

BERMAN: Jim Acosta at the White House. We do have breaking news just in this morning. Police in Italy say they are in the process of arresting 18 suspected terrorists. These arrests are part of what state police are calling a vast anti-terrorism operation.

Among the individuals, two who were Osama Bin Laden's body guards. For the latest, let's bring in Nic Robertson, who is covering this for us this morning. Nic, what can you tell us?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the Italian police are calling this an unprecedented operation, an operation like this they have not conducted before. It is being -- these arrests happening in the center of Italy and Island of Sardinia, which is where the police have been making these statements from.

What we understand and what police say is this was a group that is closely associated with al Qaeda. Two members of it were Osama Bin Laden's close body guards and also involved in a very deadly attack more than 100 people killed in 2009 in the Pakistan city of Peshawar.

This is a group that has abundant of weapons and moved cash around the world. One operative was picked up with 55,000 euro. Close to $50,000 in cash on a flight from Italy to Pakistan. The members of the organization were prepared to go to Pakistan and Afghanistan to commit acts of terrorism and then come back to Italy.

And another concern for the Italian authorities, they believe that this group may be involved in illegal immigrants arriving in Italy and then trying to recruit them for the terror network -- John.

BERMAN: Nic Robertson, any sense why today or why now? Did something set this off?

[05:40:06] ROBERTSON: You know, the Italian police have not said yet. They will hold a press conference in the coming hours. They may give more information about the reason for the timing, but when they talk about somebody being picked up on a flight with close to $50,000 cash on the way to Pakistan.

That would tip-off people in the organization that perhaps the police were on to them. There may be a time sensitive issue like that although we don't know yet -- John.

BERMAN: Nic Robertson for us this morning covering the breaking news, the terror round up in Italy including Osama Bin Laden's tow former body guards. Thanks so much, Nic.

It's 40 minutes after the hour. Let's get an EARLY START on your money. Alison Kosik joins me now. Good morning, Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning to you. And a big milestone for the Nasdaq, there is a new record over there. Yesterday, the Nasdaq closed at 5,056, that topped its closing high that was set in March of 2000 at the top of dot-com bubble.

So stop for a minute, though, to reflect and asks this question, could we be headed for another crash? It is a fair question. This is not your father's Nasdaq because the companies in the Nasdaq these days are more well established. They make money. They've got cash on hand.

Another ice cream company yanked off the shelves because of a listeria risk. Jeni's Splendid ice cream recalled all of its products and closed all of its shop for now after one sample was found to be contaminated.

The FDA is investigating. So far the company is unaware of any illness from its product. The chain has more than 20 stores and sells its ice cream at grocery stores nationwide.

This is only the latest listeria scare. Earlier this week, Blue Bell recalled all of its products too. Keep in mind that this is as far as Jeni's goes, it's a voluntary recall and no one has gotten sick as far as the authorities know.

BERMAN: That's good news. Alison, thanks so much.

Protests turning tense on the streets of Baltimore, police clashing with demonstrators.

We have another story, a major stage collapse in Indiana. You saw the video right there. We will have the latest next.

(COMMERCIAL BREAK)

[05:45:40]

BERMAN: New clashes Thursday between police and protesters in Baltimore who are demanding answers in the case of Freddie Gray, who died in police custody after suffering a spinal injury. At least two people were arrested during these demonstrations.

Our reporter, Brian Todd, right in the middle of the protests, let's go to Brian now.

BRIAN TODD, CNN CORRESPONDENT: John, very angry protest on the streets of Baltimore tonight. We are in front of the West Precinct of the Baltimore Police Department where the crowds have been very, very spirited, angry but largely peaceful. It seems like this commonplace throughout the evening.

You have protesters talking to police, sometimes yelling at police, very angry with police, and the police officers just being very stoic. Listening to them and sometime nodding their heads, but by and large, this has been a very, very peaceful crowd tonight. Earlier, we did see some confrontation between protesters and the police when the police arrested two people and tried to take them into police vans. Some of the marchers, who are on the streets then rushed to police, there is a lot of jostling around.

We got knocked around a little bit. Some objects were thrown. Everybody was OK, though, and the crowd eventually kind of calmed down. Police got between themselves and other officers, who were trying to make those arrests.

That was the real flashpoint of today, but again, this crowd has been kind of self-policing. Whenever people started to throw things or really get more confrontational with police, some of the protest leaders have appealed to them to tamp it down and not to throw objects and not to get violent.

So that has led to the spirit of maybe some anger and some passion, but at least so far tonight, John, no violence. John, back to you.

BERMAN: All right, Brian Todd in Baltimore for us. Thanks so much, Brian.

Another story to tell you about right now, dramatic video, thousands evacuated after a huge volcano erupts, dangerous smoke, ash filling the air. We will have a live report next.

(COMMERCIAL BREAK)

[05:51:16]

BERMAN: Look at these pictures. Thousands of people have been evacuated from a small town in Southern Chile where a volcano has already erupted twice and it could blow again. This ash cloud from the Calbuco Volcano is 9 miles high. It is already disrupting air travel covering much of Chile and parts of neighboring Argentina in up to 2 feet of ash.

I want to bring in CNN's Shasta Darlington live in Chile. Shasta, what can you tell us?

Shasta, you are hearing us OK? Can you give us the latest on what's going on with this volcano and what people in the area are being told?

All right, we are having communication problems with Shasta Darlington, but as you can see the Calbuco Volcano sending huge amounts of ash and smoke into the sky. This could be an issue for locals in the area.

They are watching very, very closely for the possibility of more eruptions. Travel in the area could be an issue as that cloud spreads further and further. We will stay on the story and bring you the latest as it comes in.

All right, the plan to create a cable super giant may be dead. Bad news for two major companies, but if you wanted to buy a cable company, maybe you are in luck, an EARLY START on your money next. (COMMERCIAL BREAK)

[05:55:59]

BERMAN: Time now for an EARLY START on your money. Alison Kosik is here with that.

KOSIK: Good morning to you. We are seeing green arrows. U.S. stock futures are pointing up right now, but it could be another record day if that holds. Yesterday, the Nasdaq topped its record high set in March of 2000 climbing to 5,056. That's a major milestone.

It's means the Nasdaq has finally gotten over the dot-com bubble. But it also begs the question, does this signal another bubble? Fair question, but this ain't your father's Nasdaq. These companies are well established. They make money and they have cash on hand.

Quicken Loans is being sued over improper mortgage lending. The Justice Department says Quicken violated federal rules when it made loans backed by the government.

For example, Quicken allegedly requested inflated appraisals and the government says knowingly fudged borrowers' incomes to get FHA insurance. Quicken profited on these loans even when borrowers defaulted. Ultimately that costs taxpayers millions of dollars.

Comcast is planning to walk away from its $45 billion merger with Time Warner Cable. The reason is intense government scrutiny. The deal would have reshaped American media and given Comcast unique control over market for broadband internet.

Comcast is already the number one provider of cable TV and broadband. Time Warner would have provided more customers in key markets like New York and Los Angeles. Sources are saying the change of plans could be announced later today.

But we had indications that this could have been an uphill battle from the get-go because there was no termination fee. No break-up fee if both of these companies backed out because they knew it would be a real tough one to sell.

BERMAN: This is a bust though in terms of mergers goes and I think, you know, we don't know the ripple effects just yet. Alison Kosik, great to have you with us this Friday morning. Thanks so much.

So dozens of students were injured when their high school concert stage suddenly collapsed. There is a lot of breaking news this morning. "NEW DAY" picks it up right now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It just collapsed underneath.

UNIDENTIFIED FEMALE: Everybody just started screaming.

UNIDENTIFIED MALE: There was this one girl who had like nails in her leg.

UNIDENTIFIED MALE: Some objects are being thrown. I'm not sure why that man was arrested.

UNIDENTIFIED MALE: They really did a number on him and then on top of all of it, they're denying it.

UNIDENTIFIED MALE: The U.S. drone strike killed two western hostages held by al Qaeda.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: Mistakes, sometimes deadly mistakes, can occur.

MICHAELA PEREIRA, CNN ANCHOR: Tensions flaring in the 2016 race to the White House.

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: There are those as leaders who take a very different view.

UNIDENTIFIED MALE: There's every appearance that Hillary Clinton was bribed.

(END VIDEOTAPE)

CHRIS CUOMO, CNN ANCHOR: Welcome to your NEW DAY. Yes, it is Friday April 24th, 6:00 in the east. And we have news breaking overnight. Singing gives way to screams at an Indiana high school. A stage collapses during a rock concert all caught on video. You'll see it here, nothing too grisly. Two dozen students though were hurt.

ALISYN CAMEROTA, CNN ANCHOR: And students were standing at the front of that platform which gave way sending the singers crashing into the orchestra pit. CNN's Ryan Young joins us live from the scene. Ryan, what's the latest?

RYAN YOUNG, CNN CORRESPONDENT: Good morning, Alisyn. We watched that video over and over. And talking to so many there that's a ten-foot drop that everyone watched and experience dozens of parents running towards the stage.

(BEGIN VIDEOTAPE)

YOUNG (voice-over): Breaking overnight, a frightening scene at a high school rock concert in Indiana. Nearly two dozen injured and one critically. Watch as in the final moments of a performance of "American Pie" at Westfield High School the platform beneath these students gives way.

Terrified screams filling the air as the stage collapses and the student performers are sent plunging below. Witnesses describing a chaotic scene.

UNIDENTIFIED FEMALE: It was last song and then you just hear this huge bang and then all the students disappear. What we saw was just traumatizing.

UNIDENTIFIED FEMALE: Confusion and then began screaming from parents and faculty and staff in a rush to the stage.