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EARLY START

United Airlines Passenger Rushes Cockpit; Crucial Election in Israel: Polls Open; New Outrage Over GOP Letter to Iran; Putin Emerges After 10-Day Absence. Aired 4:30-5a ET

Aired March 17, 2015 - 04:30   ET

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


(COMMERCIAL BREAK)

<04:30:20> JOHN BERMAN, CNN ANCHOR: Breaking overnight: a dramatic takedown on board a United Airlines flight. A man becoming violent, racing to the cockpit. We're going to have the latest details ahead.

And happening now: Israeli elections. Leaders at the polls. Prime Minister Benjamin Netanyahu trying to hang on to his job. Last-second words on the campaign trail causing controversy. We are live as the votes are cast.

Iran expressing concerns about the letter from 47 Republican senators, that during these groundbreaking nuclear negotiations between the United States and Iran. President Obama now on the record with new outrage. We'll break down all these comments ahead.

Welcome back to EARLY START, everyone. I'm John Berman. Thirty minutes past the hour. Christine Romans on jury duty today.

And breaking overnight: a terrifying flight for passengers on the United Airlines jet, forced to subdue another passenger who tried to rush the cockpit. This is cell phone video of the suspect being restrained by an unidentified man. Flight 1074 from Washington, D.C. to Denver was forced to turn around, 33 passengers, six crew members onboard. The plane landed back in Washington about an hour after takeoff.

Police took the man into custody after the flight returned to Dulles International Airport. A spokesperson there said that man was taken to a local hospital for evaluation. The remaining passengers will be flown on to Denver this morning. We will let you know if we hear any details surrounding this incident.

Polls now open in Israel. Voters lining up to elect a government this morning. Prime Minister Benjamin Netanyahu trying to hang on to his job raising the stakes again right the home stretch of this re- election campaign.

The prime minister vowed that there would not be a Palestinian state as long as he is prime minister. That reverses a stance he had since 2009. And, of course, this follows the controversial speech earlier this month before the Congress which criticized the White House nuclear negotiations with Iran. The Israeli/U.S. relations is just one issue at stake here in these elections.

CNN's Oren Liebermann at a polling station with the latest -- Oren.

OREN LIEBERMANN, CNN REPORTER: Well, John, today is what it's all about after months of campaigning. This is what really matters. A pretty good turnout there. They just set up a second polling booth here in Jerusalem.

And that signifies how important this is to both sides here. Benjamin Netanyahu making the statement you talked about yesterday where he said or suggested under him, there would not be a Palestinian state. He did that or said that in an interview with local media. He insisted a Palestinian state in today's Middle East would be a base for attacks on Israel.

So, he is very much playing to his right wing supporters, trying to get them to come out and vote for his Likud Party.

Meanwhile, Isaac Herzog who voted shortly after Benjamin Netanyahu this morning said, if you're happy with the status quo, if you're happy with the way things are, then go ahead and vote for Netanyahu. If you want change, if you want different leadership, Netanyahu as prime minister over the last six years, then vote for Isaac Herzog, vote for the Zionist Union.

So, both candidates making a final push here. We all know what the polls say and the candidates know what the polls say. They were neck and neck up until this final week.

And that's when we saw the gap opening. That's when we saw the challenger, Isaac Herzog of the Zionist Union party opening up a four- vote lead or a four-seat lead in the Knesset. That's not a significant lead, that's not impossible to overcome, but it's important because it's the biggest gap so far in the elections.

That is why we have seen so much of Benjamin Netanyahu here in the last few days, making a push to right wing supporters holding a big rally in Tel Aviv's Central Rabin Square. He knows what is as stake and he knows his political life is on the line. And he knows voter turnout is what he needs. He has to close that gap.

Meanwhile, Isaac Herzog hopes that he can open up that gap and be the next prime minister of Israel.

John, a very tight here. No one taking anything for granted.

BERMAN: Polls stay open until 10:00 p.m. Israeli Time tonight. That's 4:00 p.m. Eastern Time here in the U.S. We should get the first exit polls shortly after that.

Oren Liebermann in Jerusalem for us -- thanks so much.

Developing this morning, President Obama says the U.S. cannot afford to have Senate Republicans trying to undermine his efforts to negotiate a nuclear deal with Iran. That is how the president put it in an interview with "Vice", that was just released. The president told the "Vice" founder, Shane Smith, that he is embarrassed with the 47 Republican senators who signed that letter.

CNN's Jim Acosta with the latest from the White House -- Jim.

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JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John, senior administration officials say Iranian negotiators did indeed raise Senator Tom Cotton's letter to the ayatollah in those sensitive nuclear talks that are currently underway in Switzerland. But U.S. officials are confident the letter will only be what they're calling a distraction.

<04:35:01> Cotton is not backing down, saying he has no regrets about the letter, which was signed by 46 of his GOP colleagues and complained about the nuclear negotiations to Iran's ruling clerics.

The flare up with Republicans was enough for the White House chief of staff to send his own letter to GOP Senator Bob Corker assuring him Congress will have a vote on these sanctions that will be loosened as part of a deal with Iran.

But in a new excerpt from his interview taped last week with "Vice," the president said Cotton's letter was damaging to the nation.

Here's what he had to say.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This is a good example of the state of our politics that leads Republicans to be more worried about a Tea Party primary than they are about what ordinary folks are thinking. It damages our country. It damages the country. It damages our standing. It's not productive. In this day and age where we've got such big issues, we can't afford it.

ACOSTA: White House press secretary Josh Earnest said congressional critics are missing a key point, that there is no deal yet. But Earnest said the White House would rather Congress hold off on votes on Iran, well beyond the end of March when a framework agreement must be reached and at least until June. That's the deadline for a final deal, and Republicans and even some Democrats might just have a problem with that -- John.

(END VIDEOTAPE)

BERMAN: All right. Thanks to Jim for that.

Now, American voters seem to be siding with the White House on the letter to Iran. A new CNN/ORC poll finds that people thought the Senate Republicans went too far by a margin of ten points. More people thought the Republicans went too far by a margin of ten points. And with 35 percent, it was the appropriate response.

We will have more results of this poll coming up on NEW DAY in the 6:00 a.m. hour.

Now, the president apparently, these voters not alone in the concerns about the letter. U.S. and Iranian officials say that diplomats there -- Iranian diplomats raised that later as an issue at the talks in Switzerland. These nuclear negotiations continue.

I want to bring in senior international correspondent Nic Robertson, following these talks.

What's the latest, Nic?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, they have been in talks, Secretary Kerry and the Iranian Foreign Minister Zarif, have been in talks for over an hour. Yesterday, they talked for five hours and absolutely, that issue of the letter did come up. Although State Department officials not saying what and how Kerry responded to it, but it came up as well in lower level meetings Sunday.

So, it is an issue for the Iranians, and they are putting it out there. But there are a lot seems to be bigger and tougher issues because what we are hearing from the State Department after those -- after that marathon five-hour session yesterday was that they really feel that the Iranian side still have tough and necessary choices to make. These are sort of political judgments, if you will.

And they are not sure that this March 31st deadline for a framework agreement can actually be achieved at the moment. And this was echoed later in the day. Zarif went to Brussels. Just before he left, he sort of gave a glimmer of hope, saying, finally, finally, we will get something, you know, an indication that he felt those five-hour talks have gone well.

Yet, the meeting he went to in Brussels with the French and German and British officials, "Reuters" -- a source talking to "Reuters" after that meeting, a European source said, well, yes, the meeting was long, but the differences have not been narrowed. Substantial gaps remain. So, the message that is emerging here is one that the Iranians still have a lot of ground to cover.

We know from the State Department briefing yesterday, they still have on the table an enrichment facility, a heavy water reactor plant that needs to be designated, those locations need to be redesignated and changed in purpose. And the Iranians putting them back on the table as issues potentially that they don't -- in places they don't want to adjust and change.

So, the State Department describing it like a Rubik's cube. You know, you solve one part, but other parts fall out of place. So, at the moment, talks underway, but the music surrounding, if you will, not sounding optimistic at the moment, John.

BERMAN: Progress needs to happen soon if they're going to reach the deadlines they set.

Nic Robertson covering that for us -- thanks so much.

Iran, on another front, is sending missiles into Iraq to help drive ISIS out of the city of Tikrit. U.S. intelligence agencies have been tracking these shipments apparently for weeks. None of the weapons have been used yet, but the Pentagon is worried that they could cause civilian casualties if they are used because of missiles and rockets are not precision-guided.

Now, despite Iran's backing, the Iraqi offensive between the military and the militias there into Tikrit stalled at this point. ISIS inflicting heavy casualties in the Iraqis in just the last few days. We're told the White House is monitoring these developments closely with the help now of David Petraeus. You can see him there.

The retired general and former CIA director is consulting with the Obama administration on the Iraq strategy, even though Petraeus was convicted of leaking classified information to his mistress and biographer, and then lying about it to the FBI.

Enrollment in Obamacare is rising. According to the White House, more than 16 million Americans have gained coverage since the law took effect.

<04:40:02> And as the Obama administration plans to commemorate the five-year anniversary of the rollout, Republicans are taking another stab at repealing it. Today, they will unveil the 2016 budget. It includes vouchers for Medicare, transforms Medicaid into block grants for states, and it eliminates the Affordable Care Act.

All right. Twenty minutes until the hour right now.

Let's bring in Alison Kosik for an early look at your money.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Seeing some red arrows already. Asian and Europe markets are mixed. And U.S. stock futures, they're actually slightly higher, though.

Monday, we saw stocks jump and rebounding from big losses last week. The Dow gained 227 points, the S&P 500 and NASDAQ both added 1 percent. So, what that does is put the Dow and S&P 500 back in positive territory for the year.

Just a little perspective for you with all these crazy moves stocks are making. Stocks at this point are very close to highs. The Dow is about 2 percent away from its record. The NASDAQ and S&P 500, they're not far behind that.

We're keeping our eye on oil prices. Oil continuing to fall, plunging yesterday to its level in six years. The price of crude dropping to $42.85 a barrel, the lowest since March of 2009. Just a month ago, we were hearing of oil comeback. Well, now, experts are thinking the price could drop even lower than $40 a barrel.

So, you are seeing a lot of nervousness in the oil pits with investors saying -- you know what, we are not seeing a bottom yet.

BERMAN: No, you told me this was happening yesterday. It's a big, big deal worth watching.

KOSIK: absolutely.

BERMAN: Alison, thanks so much. All right. The man accused of shooting two police officers in

Ferguson, Missouri, appearing in court. His lawyer now offers a different explanation for what happened that night. A little bit different than what we heard.

That's right after the break.

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<04:45:16> BERMAN: The attorneys for Jeffrey Williams, the shooting suspect charged with wounding two Ferguson, Missouri police officers, claims his client was roughed up by police after his weekend arrest. Ferguson police call the allegations completely false. Williams charged with shooting two Ferguson officers during a protest last week. But his attorney insists Williams was not targeting police.

Let's get more now from CNN's Ana Cabrera.

(BEGIN VIDEOTAPE)

ANA CABRERA, CNN CORRESPONDENT: John, the attorney for 20-year-old Jeffrey Williams says his client was not part of any police ambush. He says he was not a protester and he says he's confident police have the wrong guy.

Yet, investigators say they found a gun at Williams' home that matches the shell casings found at the shooting scene. They say in an audio and videotaped police interview, Williams actually admitted to firing the shots that hit two police officers outside the Ferguson police department late Wednesday night.

When I asked Williams' attorney about that specifically, he says his client was questioned without counsel. He claims police roughed up Williams and says he may have been coerced into saying he was the gunman.

JEFFREY WILLIAMS' ATTORNEY: He said he was bruised by the police when he was taken into custody. And he was in a lot of pain when he was being questioned.

CABRERA (on camera): Did they beat him?

JEFFREY WILLIAMS' ATTORNEY: Yes, they used a lot of force on him. He said, you know, choked by the neck. He has a lot of bruises on the cross of his back. He has a knot on the back of his head where someone beat him with a pistol in the back of his head.

CABRERA: Does he admit he fired shots near the Ferguson Police Department?

JEFFREY WILLIAMS' ATTORNEY: No, he does not. And what I want to be clear any statements he made, I'm not confident those were voluntary statements.

CABRERA: St. Louis county police call the allegations of abuse false. They continue to urge the public to come forward if more information, video or photos that may aid in their investigation. In the meantime, Williams is still being held on a $300,000 cash-only bond and he's facing about a half dozen charges, including assault and firing from a moving vehicle -- John.

(END VIDEOTAPE)

BERMAN: Ana Cabrera, thanks so much.

Jurors at the trial of accused Boston marathon bomber Dzhokhar Tsarnaev will hear testimony tonight about the boat where Tsarnaev was hanging out, also, more about his arrest. On Monday, the jury took a field trip to see the boat. Later in court, they heard officers described the intense gun battle between police and the Tsarnaev brothers that led to the death of Tamerlan Tsarnaev. While making his escape in a stolen vehicle, Dzhokhar Tsarnaev ran over the body of his brother, dragged it through the street.

Manhattan real estate heir Robert Durst faced criminal charges in two states this morning. His weapons related arrest in New Orleans could complicate the extradition in Los Angeles where he is charged with murdering his friend 15 years ago. That case could result in a death penalty for Durst. Durst is being held without bail right now in New Orleans.

Former San Francisco 49ers player Ray McDonald on offensive for the rape case. He is suing his accuser for defamation. McDonald was released by the 49ers in December following the sexual assault allegations. His attorney hopes this civil suit will force prosecutors to complete their investigation which he believes will exonerate McDonald. He says NFL teams are reluctant to sign McDonald until that case is resolved.

Former NFL quarterback Tim Tebow reportedly working out for the Philadelphia Eagles on Monday. A source says the team is not planning to sign Tebow, at least not right now. But this off season has been filled with a lot of surprises by Philadelphia coach Chip Kelly. So, you know, who knows?

Tebow last played in an NFL game in 2012 with the New York Jets. You are looking at him in a Patriots uniform right now because he was in training camp back in 2013, but was cut before the season started.

Russian President Vladimir Putin resurfacing after a mysterious 10- plus day absence. Where was he? Why is Russia's military now launching a show of force? We are live in Moscow, next.

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<04:52:57> Vladimir Putin, he is alive. There is a picture of him. He met yesterday with the leader of Kyrgyzstan, putting to rest a whole bunch of conspiracy theories about where he had been for the last 10-plus days. After sort of disappearing, mysteriously, he got right back to work, ordering a huge round of military exercises in the Arctic that have people wondering why and why now.

CNN senior international correspondent Matthew Chance in Moscow with more on these exercises and this sudden reemergence, Matthew.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, that's right, John. Emerged after ten days absence from the public eye, unexplained absence, which is incredible for a figure like Vladimir Putin, a leader who so often on the media on a daily basis. It's still hasn't been explained, obviously appeared. And so, he put to rest any rumors that he died which had been circulating on the Internet.

But it doesn't indicate whether or not he's been ill. That's also a possibility. Another rumor was that he'd gone to Switzerland to witness the birth of his alleged lovechild, from his alleged girlfriend. That's not, of course, been confirmed by the Kremlin either. They keep things like that very close to their chest.

But, you know, he is out there and showed if he disappears, if he is not at the helm of Russia, the country sort of disintegrates into the kind of paranoia and fear. So, it's very instructive in that sense.

Again, he came out and he said that there's going to be exercises, you mentioned this already, in the Arctic, military exercises, one of the biggest shows of force in recent years -- 40,000 Russian troops, submarines, war ships, aircraft as well taking part. Russia demonstrating that in that Arctic Region, it is very, very dominant in the region, even compared to the forces that NATO have in the region.

BERMAN: Forty thousand troops, it's a very, very big military exercises.

Matthew Chance in Moscow for us, thanks so much.

Fifty-four minutes after the hour right now.

Apple getting in on the TV business with a big change and big ploy coming up. You're going to want to hear about this. We have an early start on your money, next.

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<04:58:15> BERMAN: Let's get an early start on your money right now. Alison Kosik in for Christine Romans this morning.

Good morning.

KOSIK: Good morning.

A little bit of a turn around in Asian and in Europe markets. They turned higher. U.S. stock futures, they are mixed.

As far as yesterday, stocks jumped Monday. Dow gained 227 points. And the S&P 500 and the NASDAQ both added 1 percent. So, investors now are laser-focused on the Federal Reserve's two-day policy meeting which kicks off today. They are eyeing the hottest word on Wall Street right now, "patient". If the Fed says it's going to stay patient on hiking interest rates, that could spark another rally. If it makes no mention of the word at all, that could be the signal that a rate increase is coming. It could be as early as June.

It is not getting cheaper to rent. In the past five years, rents have gone up 15 percent and they are outpacing income in most of the country's cities. That's according to a report from the National Association of Realtors. No surprise here in New York, topping the list as the city with the highest rent increase. Also on the list where it is super expensive to rent, Seattle and San Jose, California, as well, and Denver.

So, looks like Apple is getting into the cable TV business just in time for the fall season. "The Wall Street Journal" saying Apple is in talks with broadcasters to offer a bundle of about 25 channels, including big names like ABC and CBS and FOX. Now, the bundle would cost $30 and $40 a month. That is less than the average household paid for a cable subscription. Hmm.

All right. Millennials, listen up. Do you have questions about student loans, the best majors to take, how to invest, and whether to dump a boyfriend with credit card debt? I don't know if that's just for millennials there. But if you have those questions, go to Twitter and ask my colleague, Christine Romans. Use the #AskChristine. She's got a lot of good advice.

BERMAN: She has great advice. She also has a book coming out in one week where all of this will be summed up in one place.