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EARLY START

Airstrikes Continue Against ISIS in Iraq; UK Participation in ISIS Airstrikes; Suspect Arrested in Missing Student Case; French Hostage Murdered by ISIS Allies

Aired September 25, 2014 - 04:30   ET

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


JOHN BERMAN, CNN ANCHOR: The Pentagon spokesperson saying the military is quote very confident that we hit what we were aiming at. Hitting those refineries so key in destroying the financing for ISIS. The new airstrikes began just hours after President Obama addressed the U.N. General Assembly calling for a united front against the Islamic terror group.

Meanwhile, U.S. forces are continuing to hit ISIS in Iraq as they have for weeks. U.S. warplanes conducted air strikes Wednesday in two ISIS fighter positions in northern Iraq, also two vehicles west of Baghdad.

But President Obama is drawing a line on U.S. involvement. Talking to the new Iraqi Prime Minister Haider al-Abadi.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Although we cannot do this for you, we can be a strong partner and we are fully committed to your success. We wish you Godspeed and we are grateful for your willingness to take on this leadership mantle at such a critical time in your country's history.

(END VIDEO CLIP)

BERMAN: Want to go to northern Iraq now where the battle against ISIS has been raging for weeks.

CNN's Ben Wedeman is on the ground there.

Good morning, Ben.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, good morning, John. We are in Hassan Sham which is a place where just a week and a half ago a battle took place between ISIS and the Peshmerga the Kurdish fighters. This is a position which here is a checkpoint on a critical bridge down the road to Mosul which is just about 30 kilometers up the road from here. Interestingly enough, still written on this checkpoint is the Islamic State, so their president still very much felt here.

Speaking to some of the soldiers they said they do still occasionally get incoming mortar rounds in the area. Now in this area, of course, Kurdish forces were able to push back the ISIS militants with the help of U.S. airstrikes. Now as you mentioned, there were two U.S. airstrikes outside of Irbil

apparently on ISIS positions. But speaking to British commanders here, they say not only is the United States providing some air cover, but also critical intelligence on where ISIS forces are. Now they do say they've noticed the changes in the ISIS tactics. But before they were driving around in the open with, for instance, those Humvees they were able to capture from the Iraqi military.

Now they say ISIS is staying hiding that kind of heavy equipment. They're moving around in civilian vehicles and keep a much lower profile because of the threat of U.S. strikes -- John.

BERMAN: All right. Our Ben Wedeman in that area where the battle against ISIS has been raging with some success pushing ISIS out, as you can see that is now standing in an area where they were and where they are no longer.

Our thanks to Ben Wedeman there.

ROMANS: All right. One continuing question in the airstrikes against ISIS has been which European allies will join them and when. Now the French have already joined in now British Prime Minister David Cameron said he'll ask parliament for clearance to join coalition bombing against ISIS in Iraq.

CNN's Erin McLaughlin is standing by for us live this morning in London with more.

Good morning, Erin:

ERIN MCLAUGHLIN, CNN CORRESPONDENT: Good morning, Christine. It certainly does seem as though Prime Minister David Cameron is gathering the necessary support to approve of British airstrikes over Iraq. At the same time, lawmakers here very wary not to make the same mistakes of the Iraq war.

They want to see concrete proposals with clear objectives firmly rooted in international law, which is perhaps why the prime minister yesterday during his speech at the U.N. General Assembly clearly laying out his case. In a speech that seemed more geared towards lawmakers back home than the diplomats in the room.

Let's take a listen to what he had to say.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: ISIL is not a problem restricted to just one region. It has murderous plans to expand its borders well beyond Iraq and Syria. And to carry out terrorist atrocities right across the world. It is recruiting new fighters from all over the world. 500 have gone there from my country, Britain, and one of them, almost certainly, brutally murdered two American journalists and a British aid worker.

This is a problem that affects us all and we must tackle it together.

(END VIDEO CLIP)

MCLAUGHLIN: Important to note that the airstrikes that are going to be considered by parliament tomorrow are restricted to Iraq at the request of the Iraqi government regarding any sort of strikes over Syria. Well, the prime minister has said that that would have to be subject to a separate parliamentary debate.

But pressure really is growing on Britain to take some sort of action considering France already participating in airstrikes over Iraq. Yesterday, the Netherlands agreeing to participate as well. Belgium considering to send six fighter jets to Iraq as well -- Christine.

ROMANS: Our Erin McLaughlin for us this morning in London. Thank you, Erin.

Top diplomats are warning against letting the fight against ISIS inadvertently helped Syrian dictator Bashar al-Assad. Now ISIS emerged as one of the rebel groups fighting to overthrow Assad's regime. Diplomats meeting at the U.N. this week say the coalition effort to eliminate that ISIS threat could also eliminate an Assad enemy.

In his U.N. address, President Obama took pains to emphasize that the airstrikes are intended to help moderate Syrian rebels, not Assad. Syria's representative to the U.N. criticized that part of the president's message.

(BEGIN VIDEO CLIP)

BASHAR JA'AFARI, SYRIAN AMBASSADOR TO U.N.: The approach used by President Obama was a rather constructive one, except in the small part where he contradicted himself by saying that USA -- I mean, his administration would support what he called the Syrian opposition.

He shouldn't have said that in this way because we are a legitimate government. Nobody has the authority or the permission or the power to war against a legitimate government elected by its own people. This is the case of the Syrian government.

(END VIDEO CLIP)

BERMAN: U.S. airstrikes in Syria aimed at an al Qaeda-linked group killed at least one of its leaders. Now officials now confirm reports that the head of the Khorasan Group was the senior operative killed in the latest attack.

You'll remember, there were sort of two separate sets of attacks here in the airstrikes against ISIS and in one carried out actually before against this Khorasan Group, an al Qaeda offshoot in the north-western part of that country. The Khorasan Group is an accused of plotting attacks against the United States and Europe.

ROMANS: Israel claims Iran used a key military base to secretly test nuclear weapons. Iran denies those allegations. The test allegedly took place in Parchin just southeast of Tehran. The country has long refused U.N. nuclear inspectors access to that base. At the U.N. General Assembly Wednesday Iran's president said the country is working with the U.S. on terms of an agreement that would determine what kind of nuclear ability Iran would retain.

BERMAN: The latest in the fight to contain the Ebola outbreak. President Obama is set to address the United Nations General Assembly on this emergency later this morning. There are growing concerns that the outbreak could have political implications in West Africa. A top Liberian official quoted as saying the slow response could cause the region to slip back into conflict.

Also, there is a severe shortage of treatment centers in Liberia's capital, which means that more people are dying of Ebola at their homes infecting family members and neighbors. Only 18 percent of Ebola patients in Liberia are being cared for in hospitals. Aid workers, health workers, educators now facing the added danger of being attacked while they're trying to help, while they're going to areas that disinfect and bury the dead. Even just warn people of the dangers of Ebola. In the latest incident, a Red Cross team was attacked while collecting bodies in Guinea.

In the meantime, a pair of drug companies is now planning to advance another Ebola vaccine to human trial next year. And the FDA this week is warning three companies against marketing their products as possible treatments or remedies for Ebola.

ROMANS: All right, 38 minutes past the hour. Time for an EARLY START on your money this Thursday morning.

European stocks moving higher on hopes of more stimulus from the European Central Bank. U.S. stock futures are barely moving right now. You know, with a rally yesterday for U.S. stocks, the Dow up about 150 points.

Look at Apple this morning. It says a fix is coming for its troubled iPhone software. Apple withdrew the first update to its recently released IOS 8 yesterday. Why? Users complained after they updated their phones they were unable to connect to cellular networks or use the fingerprint reader.

This morning Apple says it's working on a fix. It'll be ready in a few days. In the meantime, users who were having problems can reinstall IOS 8 through iTunes. That apparently does the trick. This software issues came at the same time as bendgate, as we're calling it now. Some iPhone 6 Plus users say the large phones bend when kept in their pockets and you wear skinny jeans. Apple shares fell 1 percent yesterday.

BERMAN: Just one of the many problems in wearing skinny jeans.

ROMANS: Buy a --

BERMAN: That's a skinny jean problem. It's not a phone problem.

ROMANS: Don't wear tight pants.

BERMAN: Or stop bending your phone. (LAUGHTER)

BERMAN: Right? I mean --

ROMANS: We tried to bend one yesterday. I couldn't --

BERMAN: Really? Well, hit the gym and try again in a week or so and see how that goes.

ROMANS: Eat my spinach.

All right, 39 minutes past the hour. A suspect arrested, accused of the abduction of an 18-year-old nursing student who vanished last week. What police are now saying about this case next.

(COMMERCIAL BREAK)

ROMANS: Welcome back. 43 minutes past the hour. Police now have a suspect in custody in the abduction of missing University of Virginia student Hannah Graham. 32-year-Old Jesse Matthew was apprehended by police in Galveston, Texas. Virginia authorities say the extradition process is already under way now.

Matthew was the last person seen with Hannah Graham before she disappeared 12 days ago. There were prayers for Hannah Wednesday night during a vigil in her hometown of Alexandra.

We get more now on the suspect's capture from CNN's Jean Casarez.

(BEGIN VIDEOTAPE)

JEAN CASAREZ, CNN CORRESPONDENT: Jesse Matthew is in custody this morning in the state of Texas. He was actually found on the beach in the Galveston area, Bolivar Peninsula. It's an area where family goes for vacation and fishing. And that is where a Galveston deputy sheriff actually located him.

Now we don't know any circumstances at all as to how he was picked up, but the jail did confirm with me that they stayed out at the scene with him for quite a few hours. And then at 8:00 local time last night is when they brought him into the jail, didn't book him right away because they were questioning him. Of course, this is all in the disappearance of the University of Virginia sophomore Hannah Graham.

Now the next step this morning is that law enforcement from right here in Charlottesville, Virginia, are going to be flying to Texas and the next step is the extradition process. Now someone who is in custody can fight extradition or they can waive extradition and voluntarily come back to the state of Virginia.

But we cannot forget the heart and soul of this case, and that's Hannah Graham, the University of Virginia sophomore that just went missing 12 days ago.

Where is she? Law enforcement is still asking everyone in this community to look for her because she cannot be forgotten in this case -- Christine, John.

(END VIDEOTAPE)

BERMAN: Where is she indeed. Our thanks to Jean Casarez for that.

No change of venue for Boston marathon bombing suspect Dzhokhar Tsarnaev. A federal judge denying a defense request to move the proceeding out of Massachusetts saying that an impartial jury can be found in that Boston.

The trial itself is being delayed two months. It will now begin on January 5th. Tsarnaev has pleaded not guilty to 30 federal charges now. He could face the death penalty if convicted.

ROMANS: The U.S. Justice Department says it will review the fatal shooting of a black man by police at an Ohio Wal-Mart last month. The announcement coming just hours after a state grand jury decided not to indict the officers involved.

The victim, 22-year-old John Crawford was shot after he refused commands to drop a weapon he was carrying inside the store. The weapon turned out to be an air rifle. But prosecutors say the officers were unable to tell that.

(BEGIN VIDEO CLIP)

MARK PIEPMEIER, SPECIAL PROSECUTOR: One of these is a real gun. One of these is the gun Mr. Crawford was carrying that day. As you can see, it's very hard to tell the difference. Especially if you are 100 feet away or whatever away, the pellet guns and BB guns, it's not like the Red Ryder you might have had as a kid. These are now designed to look like the real McCoy.

(END VIDEO CLIP)

ROMANS: Crawford's family calls the decision not to charge the officers incomprehensible. The two cops involved were placed on administrative leave after the shooting. One has returned to active duty.

BERMAN: Accused cop killer Eric Frein has apparently toying with Pennsylvania Police after alluding them for nearly two weeks. Authorities say Frein has been spotted several times, but always too far away to be captured and then disappears into the woods. They have also found evidence of Frein's presence including cigarettes and soiled diapers. He is suspected of the ambush of two state troopers killing one and critically wounding another.

ROMANS: A grand jury deciding not to indict NASCAR driver Tony Stewart in the death of fellow racer Kevin Ward Jr. The 20-year-old Ward was struck and killed by Stewart's car after Ward climbed out of his car to confront Stewart during a dirt track race in upstate New York last month. Prosecutors also revealed that Ward had marijuana in his system enough they say to impair his judgment.

In a statement, Stewart says, quote, "This has been the toughest and most emotional experience of my life. It will stay with me forever. I'm very grateful for all the support I have received and continue to receive."

BERMAN: A terror group linked to ISIS beheading a French hostage. The horrific crime recorded on camera. We're going to go live to Paris next.

(COMMERCIAL BREAK)

ROMANS: Another brutal beheading at the hands of Islamist extremists caught on video. French officials say Herve Gourdel was abducted and murdered by ISIS allies in Algeria over the weekend. Now Gourdel is the fourth hostage beheaded by militants highlighting a growing concern about how many captives are in the hands of ISIS and other terror groups.

CNN's senior European correspondent Jim Bittermann live in Paris this morning with more.

And this is a man who was a mountaineer, who simply wanted to hike in the mountains in the north and he was abducted only on Sunday and so quickly and brutally murdered -- Jim.

JIM BITTERMANN, CNN SENIOR EUROPEAN CORRESPONDENT: Absolutely right, Christine. And I think that's one of the things that has outraged the French this morning. Here is one of the headlines this morning from "Liberation". Decapitated because he was French. That's the line that President Hollande used last night at the United Nations General Assembly. Basically something that has unified that country politically in its outrage over this killing.

Herve Gourdel, 55 years old, a mountain hiker and a hiking guide, was just on vacation. He had only gotten to Algeria two days before he was taken prisoner on Sunday. And then he was almost immediately within 48 hours anyway assassinated. Decapitated. And it has really horrified the country. And I think a lot of people are sort of offended at the idea that -- and alarmed at the idea that now it seems to be that the reach of ISIS goes beyond just Iraq and Syria because this is Algeria, which is thousands of miles away -- Christine.

ROMANS: Jim, let me ask you. Will this change, do you think, or influence the French position on the war against ISIS? I know that the French have been flying airstrikes with the U.S. in Iraq. Does this embolden the French government or give problems to Francois Hollande?

BITTERMANN: Well, this is something we're watching this morning. About an hour from now, a defense council, the highest sort of body concerned about defense questions is going to be meeting at the presidential palace. And one of the questions according to the defense minister is -- that's on the table is whether or not they're going to join the U.S. and bombing in Syria. Until now the French had bombed in Iraq but not in Syria. That could change with this -- the death of this hiker this morning -- Christine.

ROMANS: A terrible story. The French people must be outraged and so upset.

Thank you so much, Jim Bittermann in Paris for us this morning.

I mean, the guy was just climbing. He is a mountaineer just going on a hike, you know?

BERMAN: And the fear is that groups like this in Algeria inspired by ISIS may start to take advantage of the situation and do this type of thing all over.

ROMANS: And pledging allegiance to this -- these other foreign fighters.

BERMAN: Exactly.

ROMANS: Showing this goes beyond the Iraq and Syria situation.

BERMAN: All right. Ever heard of a job with unlimited paid vacation days? It's a benefit you could have if you picked the right employer.

ROMANS: Is that our employer?

BERMAN: Stay tuned. I can't wait to find out.

(LAUGHTER)

BERMAN: Of course, I may not be here.

We'll have an EARLY START on your money next.

(COMMERCIAL BREAK)

ROMANS: Welcome back. 57 minutes past the hour. European stocks higher this morning on hopes of more stimulus from the European Central Bank. U.S. stock futures barely budging so far. But it was a big rally yesterday. The Dow up 150 points. Reversing some of those losses earlier in the week.

Stocks still very close to record highs, folks. The Dow just down a shade from its record high close. The S&P 500 down less than a percent from its record.

A slight improvement in the student loan crisis to tell you about. Fewer borrowers are defaulting on their federally backed loans. According to the Department of Education, 13.7 percent of students defaulted on their federal loans within three years of their first payment. 13.7 percent. That is an improvement from last year.

BERMAN: Still a big number.

ROMANS: Yes. It is still too high. I mean, double digits, still too high. Economists say student loan debt dragging down the economy. And new analysis reveals it has caused an 8 percent decline in home purchases by Americans under 40. It's not just the millennials, but young baby boomers, too, held back from their first-time home purchase because of student debts. So watch this space. Billionaire Richard Branson thinks employees should have as much

vacation time as they need. He announced this change for Virgin Group employees yesterday. According to a recent survey, less than 1 percent of employers offer unlimited paid vacation time. Unlimited paid vacation time. Some of the companies that do that, limitlessly, look here, guys, if you're looking for a job. Limitless vacation time at Netflix, Zynga, Groupon, SurveyMonkey and others.

If your company doesn't agree with Branson, remember, 40 percent of Americans let some of their vacation time go unused anyway.

And yesterday I was talking to the executive chairman of Google, Eric Schmidt. I'm name dropping. And he --

(LAUGHTER)

ROMANS: I asked him about what Richard Branson said, you know, what do you think about unlimited vacation time. Richard Branson says Americans need to spend more time with their families. That people work too hard. They don't -- help their kids grow up.

BERMAN: Yes.

ROMANS: And Eric Schmidt said well, in Silicon Valley, everybody loves to work so much. They wouldn't take vacation.

BERMAN: I was talking to Clooney the other day, George Clooney.

ROMANS: Yes?

BERMAN: And he says the same thing about Hollywood. Everyone loves to work so much to take a vacation.

ROMANS: He was asking --

BERMAN: I'm just name dropping.

ROMANS: And he was asking about --

BERMAN: Exactly right. No. Fascinating.

All right, EARLY START continues right now.