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EARLY START

Key City Falls to ISIS; U.S. Intelligence Analyzing Treasure Trove of Data; Amtrak Northeast Corridor to Reopen Today; Rubio Testy on Iraq War Question. Aired 4:30-5a ET

Aired May 18, 2015 - 04:30   ET

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


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[04:31:11] JOHN BERMAN, CNN ANCHOR: Happening now, a key city falls to ISIS in Iraq. This morning, ISIS is on the move. Where will they strike next? Can the U.S. do anything to stop them?

CHRISTINE ROMANS, CNN ANCHOR: U.S. intelligence officials analyzing the data after a raid that took out a key ISIS leader. What else did the commandos find in the weekend mission and how could it help fight the Islamic State?

BERMAN: And just one hour to go before Amtrak's northeast corridor resumes full service. Thousands set to hit the rails between New York to Philadelphia for the first time since the fatal crash that killed eight people. What new measures are in place? And where does the investigation stand?

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

ROMANS: Nice to see everybody. I'm Christine Romans. 31 minutes past the hour.

Developing this morning, a major victory for ISIS in Iraq. Ramadi, the capital of Anbar Province, falls to ISIS fighters. After months of clashes between Iraqi forces and ISIS militants, Iraqi officials say ISIS forces bursts through gates and walls with armored bulldozers and at least ten suicide bombings. Then on Sunday, government forces pulled out of a military base on the city's west side and retreated eastward. But Iraqi and American officials say the fight for Ramadi is not over.

For the very latest, I want to bring in CNN's Ian Lee. Good morning, Ian. You've got civilians and military personnel fleeing Ramadi. We know ISIS treats its captives horribly. A lot of fear about what's happening in that city right now.

IAN LEE, CNN REPORTER: That's right, Christine. And when you look at this battle, it just proves that, pound for pound, ISIS is still a more effective fighting force than the Iraqi military. There are pockets of resistance inside Ramadi. But as you said, they do not treat their captives well. These men are most likely fighting to the last person. There have been 500 people killed in this final assault. Just to show you how brutal the fighting was, the Iraqi military pulling back and giving the city to ISIS.

Now the Iraqi government is trying to formulate a counterattack, how to retake the city, and they've called up the very controversial Pashtashabi (ph), the Shiite militias we've seen used effectively in other parts of Iraq against ISIS, although they have been followed by claims of rights abuses. So that's what makes them so controversial. But the world taking notice of this latest fall, including Secretary of State John Kerry. Take a listen.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: Every single country in the region, bar none, is opposed to Daesh and engaged in fighting them. So I'm confident about the longer road, but, yes, there will be moments like yesterday in Ramadi and there will be some difficult challenges ahead.

(END VIDEO CLIP)

LEE: The Iraqi government has complained, saying they didn't get the air support that they wanted in the battle for Ramadi. But they are preparing to retake it. It is going to likely be a very bloody battle. As we saw with Tikrit, it took them weeks upon weeks to finally take that city. Ramadi, a bit smaller, but still ISIS is very capable of holding ground once it's taken. Christine.

ROMANS: All right, Ian Lee for us in Cairo this morning. Thank you, Ian.

BERMAN: This morning, U.S. officials are assessing a trove of intelligence seized in a special forces raid that killed a key ISIS commander. This is the word, at least from U.S. officials. They say about a dozen Army Delta Force commandos raided a multi-story building in eastern Syria. The Pentagon says the ISIS commander known as Abu Sayyaf died in a heavy firefight when he resisted capture. Officials say this man helped run the ISIS oil and gas operation, along with having a senior military role in ISIS.

[04:35:02] Pentagon officials say there were no U.S. or civilian casualties in the raid. U.S. troops are said to have captured Abu Sayyaf's wife, also taking with them computers, mobile phones, and documents that officials now hope will prove to be a gold mine of intelligence.

National correspondent Sunlen Serfaty is at the White House this morning with more.

(BEGIN VIDEOTAPE)

SUNLEN SERFATY, CNN NATIONAL CORRESPONDENT: John and Christine, the administration is characterizing this is a significant blow to ISIS, but there are a significant amount of questions that still remain. Who was the man the administration is referring to as Abu Sayyaf? Who was he really? How big of a role and how much influence he had in ISIS? And even the most basic question -- what actually is his real name? Now, some lawmakers on Capitol Hill are urging caution, especially

when it comes to balancing the risk of a mission like this against the reward.

REP. ADAM SCHIFF, (D) CALIFORNIA: This was an extraordinary risk. If one of our people were captured, if we lost some of our special forces, there would be tough questions to answer about whether it was worth it. And I think, notwithstanding the success of this operation, we still are going to have to ask those questions. Was the intelligence value that we hoped to gain and the fact that we are gaining worth this kind of risk?

SERFATY: And other lawmakers are praising this sort of initiative coming out of the administration. Here is what the chairman of the House Intelligence Committee had to say.

REP. DEVIN NUNES, (R-CA) HOUSE INTELLIGENC CHAIRMAN: Many of us have been advocating strategy for a long time, or using this tactic, because this is a better way to gather intelligence versus just air strikes. So it takes guts for the administration and our military to put an action like this together. It was successful. We are happy they got back and got back safely. Now, over the coming weeks, we will know what they were actually able to gather there.

SERFATY: And U.S. officials say there was a lot of intelligence -- reams of data picked up from the mission site, including a computer which could have valuable information on how ISIS operates, how they raise their money, and how they communicate. And that's of course in addition to the wife of this ISIS leader who has been detained and who will now be interrogated by the United States.

Now lawmakers on Capitol Hill do expect to receive a briefing from the White House on this, this week. John and Christine?

(END VIDEOTAPE)

ROMANS: All right, Sunlen Serfaty, thank you for that. At the White House this morning.

One hour from now, Amtrak rail service resumes between New York and Philadelphia less than a week after the disaster that killed eight people, injured more than 200. The first train leaving New York rolls out at 5:30 a.m. And a northbound train leaves Philadelphia at 5:53.

Over the weekend, technicians installed new automated speed controls on the northbound side of the track, ahead of that curve, as a first step toward improved safety. CNN's Erin McLaughlin is in Philadelphia with the latest for us.

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ERIN MCLAUGHLIN, CNN CORRESPONDENT: John and Christine, the mystery of what happened to Amtrak 188 continues. NTSB member Robert Sumwalt tells CNN they have unable to corroborate the assistant conductor's account that she heard 32-year-old Brandon Bostian tell the engineer of a nearby SEPTA train that Amtrak 188 had been hit by an unknown projectile. The NTSB says they listened to all radio dispatches from the trains in the area that night. There was nothing from Bostian to suggest the train had been by an object. Nevertheless, authorities say they are still looking into the possibility.

ROBERT SUMWALT, NTSB MEMBER: Well, at this point, we really want to chase this lead down. We heard from the assistant conductor that that's what she believes she heard, was some conversation about that, and we now see a mark on the windshield that we want to look at. So we're going to look at everything at this point.

MCLAUGHLIN: Well, today, FBI's forensic investigators are expected to examine the fist-sized circular marking on the left-hand side of the windshield. They think the marking may have been there before the crash. Meanwhile, the NTSB now says there is new evidence from the train's data recorder to suggest that, prior to the crash, Bostian manually engaged the throttle, which would have accelerated the train. The question is why. John and Christine.

(END VIDEOTAPE)

BERMAN: All right, our thanks to Erin McLaughlin in Philadelphia.

What an awful scene in Texas. Gunfire erupted at a restaurant between five rival biker gangs. When the bullets finally stopped flying, nine people were dead. Police said they heard there might be trouble at the Twin Peaks restaurant. The police were there before it started and they were prepared.

(BEGIN VIDEO CLIP)

SGT. PATRICK SWANTON, POLICE SPOKESMAN: We were concerned of the incidents that may occur here that we had active SWAT officers that were here on the scene. I can tell you, at this point, that their action has saved lives in keeping this from spilling into a very busy Sunday morning-crowded central Texas marketplace. So thank goodness the officers were here and took the action that they needed to take to save numerous lives.

(END VIDEO CLIP)

BERMAN: One of the questions, though, if the police knew this was going to be a problem, and the owners of this establishment knew it was going to be a problem, why did they allow the meeting to take place in the first place? The restaurant workers and customers, they took cover in the freezer when the gunfire started. Apparently only the bikers were among the dead and injured.

[04:40:05] ROMANS: A U.S. Marine killed in a crash during a training mission in Hawaii. 22 Marines from Camp Pendleton in San Diego were onboard on MV22 Osprey in Oahu when the aircraft experienced what the military called a hard landing mishap and caught fire. The 21 surviving Marines were all taken to hospitals. No word on their condition or the identity of the Marine who died.

BERMAN: North Korea has not even come close to taking enough steps with its nuclear program to get talks started with the U.S. That is according to Secretary of State John Kerry. The secretary made his comments from South Korea, saying it is likely that North Korea will be referred to the International Criminal Court for its human rights violations, as the U.S. discusses toughening sanctions against the regime in North Korea.

ROMANS: A cyber security consultant has informed the FBI, he tells the FBI he hacked into the computer systems of up to 20 airliners and even managed to make one jet climb. That's right. He was able to make the jet climb. Chris Roberts is his name. He was detained by the FBI last month. He's being investigated for possible cyber crimes. He says his only motive is to improve aircraft security. Roberts infiltrated the plane's computers, he says, using a modified ethernet cable to connect his laptop to an electronic box beneath his seat that controls the entertainment system. So he's flying on the plane, he's able to hack into the controls of the plane, he says, while he's sitting there in his seat using the entertainment system on the flight.

BERMAN: And there's big concern about that, I believe.

ROMANS: Absolutely.

All right, 41 minutes past the hour. Time for an EARLY START on Your Money this morning. U.S. stock futures barely moving so far, but look at this. Friday, the S&P 500 closed at a record high for the second day in a row. Stocks powering ahead despite what look like weak spots in the American economy.

If you spent $127,000 on a car, you'd expect it to be able to work, right? But according to Consumer Reports, the new top of the line Tesla Model S sedan is sometimes undriveable. The testers at Consumer Reports were locked out of the car because the high-tech retractable handles on the door would not work. Even so, the magazine says, once inside, the Tesla model turned out to be one of the best cars it has ever tested.

BERMAN: It's a minor thing, being able to get in the car to drive it.

ROMANS: You know, makes it worth it, I guess. It's like the red velvet rope. You have to figure out a way to get around it. And then once inside, it's a really great ride.

BERMAN: I actually have seen a lot more Teslas on the road than ever before.

ROMANS: But $127,000 --

BERMAN: That is a lot of money --

ROMANS: Oh wow.

BERMAN: -- for a car you can't open the door apparently sometimes.

All right, Hillary Clinton is back on the campaign trail today. The former Secretary of State heads to Iowa. Will she actually answer questions from reporters there? It's been a long, long time. We'll tell you right when we come back.

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[04:47:29] BERMAN: Hillary Clinton is back on the campaign trail. Today, the former Secretary of State will be back in Iowa. That's after ten days of fundraising. She will be meeting with some supporters at a grassroots house party in Mason City. The Clinton team is putting extra focus on Iowa for 2016. She finished third in the caucuses there in 2008.

ROMANS: As it was for Jeb Bush, the Iraq war question proving a little bit troublesome for Florida senator and Republican presidential Marco Rubio. This is a pretty testy exchange with Chris Wallace of Fox News. Chris Wallace really pushing Rubio to clarify his position on whether the 2003 invasion of Iraq was a mistake.

(BEGIN VIDEO CLIP)

SEN. MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: It was not a mistake. The president, based on -- this is the way the real world works. The president, based on the information that was provided --

CHRIS WALLACE, FOX NEWS HOST: But she was saying based on the information --

RUBIO: No, no, but look.

WALLACE: She was saying based on what we know now.

RUBIO: Well, based on what we know now, a lot of -- based on what we know now, I wouldn't have thought Manny Pacquiao was going to beat, in that fight a few weeks ago --

WALLACE: I know, but you got asked the same question and you said it made sense.

RUBIO: No, it was not the same question. The question was whether it was a mistake. And my answer is it's not a mistake. I still say it was not a mistake. Because the president was presented with intelligence that said Iraq had weapons of mass destruction. It was governed by a man who had committed atrocities in the past with weapons of mass destruction.

WALLACE: But what she asked you was, was it a mistake to go to war with Iraq?

RUBIO: It was not a mistake, given the fact that the president knew at the time.

WALLACE: No, she didn't say that. She just said was it a mistake?

RUBIO: Well, that's not the same question. The question I was asked is what you know now. Well, based on what we know now, I think everyone agrees that we still --

WALLACE: Was it a mistake? Was it a mistake to go to war with Iraq? RUBIO: It's two different --

WALLACE: I'm asking you.

RUBIO: Yeah, I understand, but that's not the same question.

WALLACE: But that's the question I'm asking you. Was it a mistake to go to war?

RUBIO: It was not a mistake for the president to decide to go into Iraq. Because at the time, he was told --

WALLACE: I'm not asking you that. I'm asking you --

RUBIO: In hindsight. Well, the world is a better place because Saddam Hussein is not there.

WALLACE: So it was not a mistake then?

RUBIO: So I wouldn't characterize it -- but I don't understand the question you're asking, because the president --

WALLACE: I'm asking you, knowing as we do, as we sit here in 2015 --

RUBIO: No, but that's no the way presidents -- a president cannot make a decision on what someone might know in the future.

WALLACE: I understand. But that's --

(END VIDEO CLIP)

ROMANS: Last week, Rubio said he would not have authorized a war knowing what is now known about Iraq.

BERMAN: We are days away from the big Memorial Day weekend getaway. And gas prices, you know what, they're suddenly spiking. How nice is that? We got much more coming up next.

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[04:52:30] ROMANS: All right, be honest, you got your hands dirty this weekend, didn't you?

BERMAN: I did. I was out in the yard.

ROMANS: Good for you. A very beautiful weekend in the northeast, giving way to some cooler temperatures for the workweek though. Let's get to meteorologist Pedram Javaheri for an early look at your weather.

PEDRAM JAVAHERI, AMS METEOROLOGIST: John, Christine, good morning to you. Look at this frontal boundary here, really it's responsible for the cool temperatures and also igniting a few thunderstorms across the southern states. The northern states, as far as North Dakota, portions of Wisconsin on into Minnesota and parts of the Great Lakes getting some snowshowers out of this. In fact, look at the radars this morning. Scattered, light in nature,

but still enough snow to at least make some noise out there. In fact, you work your way through portions of toward North Dakota, yeah, winter weather advisory in place around Minot, one of my favorite sayings They say out there, why not in Minot? Mid-May snowfall? That's why not.

Now, Fargo temperatures around 70, drops into the 40s. Minneapolis, dropping more than 30 degrees in a few spots at least, in and around the city. And notice temperatures remaining on the warm side at least in and around Detroit for the next couple of days, before the cooling trend gets there.

There are the scattered storms down to the south. Upwards of 4 inches over this region from, say, Austin up towards Birmingham and Atlanta over the next few days. Conditions will begin to dry out for the latter portion of the week. Your high temperatures around the northeast, a warming trend in New York, gets up to the mid 70s by Tuesday.

ROMANS: All right, we'll take it. Thanks so much for that. Pedram Javaheri for us.

Tragedy in Yosemite National Park. A noted extreme athlete is dead after reportedly attempting a 3,500-foot BASE jump. Authorities say Dean Potter's body was found Sunday. Park officials say he and his friend, Graham Hunt, tried to clear a gap in the Granite Cliffs, but smashed into the rocks. Graham was also killed.

BASE jumping is illegal in Yosemite.

BERMAN: Potter a legend in Yosemite.

As we head into the busy summer driving season, gas prices going up. AAA said the national average has jumped to $2.70 a gallon. That's up from $2.47 a month ago. Still lower than it was a year ago, 94 cents lower per gallon. Industry analysts expect gas prices, the rising prices, to slow because of the increase in supply.

ROMANS: All right, want some pointers from the CEO of the world's most valuable company? Career advice? Do you need career advice?

BERMAN: I do.

ROMANS: John Berman needs some career advice from Apple CEO Tim Cook. We'll bring it to you next.

[04:54:45]

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ROMANS: All right. Good morning, everybody. I'm Christine Romans. Let's get an EARLY START on your money this morning. U.S. stock futures, they're not moving so far to start the week yet, but stocks are in record territory. The S&P 500 ended last week at a record high. A lot to consider this week, especially housing data. Existing home

sales this year expected to hit levels not seen since 2006. Thanks to the best job market seven years, low interest rates, improving lending standards for borrowers, so all of that. We'll watch the housing data today.

All right, follow in the footsteps of Steve Jobs. That was the message from Apple CEO Tim Cook to George Washington University graduates. Cook said he used to believe that work was work and he would have to change the world in his own time.

(BEGIN VIDEO CLIP)

TIM COOK, CEO, APPLE: Steve didn't see it that way. He was an idealist. And in that way, he reminded me of how I felt as a teenager. In that first meeting, he convinced me if we worked hard and made great products, we too could help change the world.

(END VIDEO CLIP)

ROMANS: So interesting. Millennials don't want work to be work. They want work to be something that's more meaningful to them, so he's really preaching to the choir there.

In other news this morning, Target shunning processed foods. According to "The Wall Street Journal", Target met with major food companies like Campbell's Soup, General Mills, Kellogg. The message? Target doesn't want to put as much money and effort into marketing their products. Instead, it wants to switch to healthier, fresh food because of changing tastes in America. Target wants to match those changing tastes, an emphasis away from processed foods and toward fresh.

BERMAN: This food stuff, this food battle is raging. The implications are far, far reaching.

ROMANS: Absolutely.

BERMAN: All right, EARLY START continues right now.

[05:00:00] The key Iraqi city falls to ISIS. Ramadi now in terrorist hands. How can the U.S. and coalition forces respond? We've a live report moments away.