the hunt for isis. u.s. drones set to fly over syria searching for the islamic militants. are air strikes now imminent? this as isis gains ground in iraq. this morning, how close are investigators to identifying the terrorist who killed american journalist, james foley? we have live team coverage from london and baghdad, ahead. new video surfaces. the sound of gunshots offer new insight into the police shooting

of the unarmed teenager as the community mourns the teenager. the latest overnight ahead. good morning, welcome to "early start," i'm christine romans. >> i'm john berman. it is august 26, 4:00 a.m. in the east. up first, the u.s. is weighing new military action against isis in syria. president obama has now authorized flights over syria talking drones and spy planes. the first could happen at anytime now. this comes as isis seized a keierre base in syria and the syrian government is ready to accept support from the u.s. and others to fight the islamic terrorists. as for a possible isis attack here in the united states, the white house says there is no evidence of a current plot, but they are concerned about the potential threat. cnns nick paton walsh.

the latest news, the authorization for the reconnaissance flights over syria itself. >> reporter: this is the prelude to air strikes which no u.s. official thinks they can fight isis without because they work in syria and iraq. it's a complex task putting drones in the air. normally, you like to put it with spies on the ground. the u.s. struggling to do that. it's extraordinarily hard to get people to film for you in isis territory as journalists. that will be a challenge for them. without it, they are limited to what they have in pakistan, signature strikes, target suspicious groupings of military. that's going to be a complex task for them. the serious government saying yes, we would welcome you, but setting rules, saying they have to agree on what is done.

washington isn't going to want to get into the nitty gritty of a contact with the assad regime given the tens of thousands of civilians they have killed. that's behind the radicalization that spawned isis in the first place. we are seening recognition in washington that isis presents a threat not only in the middle east, but the united states. the military action may now spread to syria. john? >> an almost impossible situation where the united states has to figure out a way to go after isis without helping the assad regime, which exactly one year ago this week, the united states was considering bombing. >> absolutely. bear in mind, too, many analysts think the assad regime has done little to fight isis. they are seeing isis move against the rebels who were a problem for the assad regime.

their enemy's enemy. yes, since the focus changed to iraq and the attacks, there have been attacks by the syrian air force against isis. they are sounding the alarms and moving way too late. they were not complicit, but unwilling to tackle them in the earlier stages and pointing out the syrian regime's brutality permitted the prophesy to come true. the united states increasing number of those fighting against the regime and in northern syria are terrorist groups. >> difficult to find friends in the region. great to have you with us nick. isis is a threat in iraq. u.s. military officials say defeating isis will be a long process requiring more than just air strikes, including support from iraq's regional neighbors. the u.n. accuses isis of crimes

against humanitarian. we have live in baghdad. the sectarian violence is on the rise. what's the latest? >> reporter: well, just this morning, christine, at least ten people were killed and 34 wounded. it was a parked car bomb that detonated. it comes a day after multiple attacks struck in baghdad. one of those bombings is suicide attack in eastern baghdad on a shia mosque. that was claimed by isis later in the day. they say it's in retaliation for the brutal attack on the sunni mosque in baghdad on friday. that's when gunmen stormed a mosque killing at least 70 worshippers. following that attack, there's

been concern about that unleashing, that cycle of revenge, retaliation, the counter attack we have seen in the past. sectarian violence in iraq has been on the rise. levels of violence, sectarian in nature that we have not seen since the height of the war, 2006 and 2007. officials i have spoken to said they are concerned this country could be one major attack away from all out sectarian war, civil war. again, isis really does exploit this sort of environment, the sectarian tension and division. it's something isis, al qaeda and iraq exploit it. officials say that is exactly what isis is doing now. it also exploits the grievances of the sunni population to get their support, get a foothold in sunni areas and recruit more.

>> certainly a troubling statement, no question. thank you. isis is the richest terrorist organization in the world. it is using the currency of the oil in the middle east to fund it. syria now controls seven oil fields in northern iraq. the capacity of 80,000 barrel as day, sells it on the black market for $25 to $60 a barrel. bringing in an estimated $3 million a day in oil sales. criminal activity like kidnapping, smuggling and extortion a huge source of revenue as well as wealthy donors around the world funding them. futures barely moving. look at this, 2,000 the s&p 500 above 2,000 yesterday. closing at a high 8%. >> very exciting. >> it's a big deal.

peter theo curtis waiting to be reunited with his family. he was released sunday after being held captive nearly two years. his mother, after learning her son was alive and free, she reached out to the mother of slain american journalist, james foley. >> the first thing i did before i told my daughter was i sat down and sent an e-mail to diane foley. we have been through so much together. i didn't want her to hear it from the media first. >> do you know what you will say to him? >> give him a big hug and i'll probably cry. >> she'll confiscate his passport. >> sounds like a good parent there. i can't imagine what they are feeling. the family was so relieved he

was healthy and safe, they headed home after the ordeal. new revelations from edward snowden about the agency's data base. they built a google-like data base that allows two dozen agencies to search through 850 billion records including calls, e-mails and internet chats. it has data for foreigners and millions of americans. the veteran's administration says no patients died because of long waiting medical care. they looked into the deaths and found no linked to the scheduling backlogs. cnn reported the problem at the v.a. in phoenix some months ago. outrage over the delays led to the resignation of eric shinseki. after the investigation, the delays led to no deaths. president obama is said to deliver remarks at the national

convention in charlotte, north carolina. ahead of that speech, kay hagen blasted the president questioning his commitment to veterans. hagen, a democrat, is in a tight race. he hasn't done enough for real and permanent reforms at the v.a. >> the president is going to get no love from the democrats in swing states. some of the biggest stars in television, not including christine romans was on hand. it was a good night for "breaking bad." it got a final send off taking home honors for outstanding drama sere res. one of the most memorable moments, seizing a kiss. he was on seinfeld with her some years ago. wow. >> we almost used up all our

allotted time. other winners include modern family. a record fifth time. outstanding actor in a comedy. won the outstanding actress award for her role in the good wife. there were a lot of laughs and high moments. emotional billy crystal paid tribute to the late robin williams. >> it's very hard to talk about him in the past because he was so present in all of our lives. for almost 40 years, he was the brightest star in the comedy galaxy. robin william williams, what a . >> loved hearing him. they were friends for a long, long time. nice to see that last night. >> all right. 11 minutes past the hour. breaking overnight, an audio recording that captured the

sound of police shooting and killing unarmed teenager, michael brown. the possible new evidence. as the community mourns. you are going to hear it after the break.

breaking overnight, new audio has emerged, allegedly, of the moment michael brown was shot. it was recorded inadd ver tantly during a video chat. listen to the audio and hear from the ferguson resident who captured the sound of the shots. listen to this. >> you are pretty. [ gunfire ] >> you are so fine. just going over some of yours. >> he was in the department. he was talking to a friend on a video chat. he heard loud noises. at the moment, at the time, he didn't realize the import of what he was hearing until

afterwards. it just happened to have captured 12 seconds of what transpired out of his building. >> remarkable audio. the fbi is investigating and interviewed the client. this comes on the same day thousands packed a funeral home for a final farewell and called it a home going for michael brown. he was shot by police in his hometown of ferguson. it was an emotional service, one that included calls for peace, calls for justice. nick valencia says now things are quiet in ferguson. >> it has been another day of peace and quiet here in the streets of ferguson in the overnight hours. we saw a dwindling of the police force as well as the demonstrators showing their solidarity for mike brown. they heeded the message of their helders. on sunday, mike sr. urged people

to keep the peace and be respectful on the day his son was laid to rest. here in ferguson, in the early morning hours, this is what we see. demonstrators, if you look around here, it's largely empty. there is a small contingent of folks here who spent the night here overnight. a dozen people tell me they will continue their demonstrations, even when the cameras leave. there's a large contingent of support for officer wilson, just not here in ferguson. it's in st. louis. his supporters raised $400,000 for his defense. that money is going toward his livelihood. he's been given an unfair chance in the media, mischaracterized. they fear he will never be able to be a police officer and two never live in st. louis again. behind me, it's been clear to me and told to me this group is for mike brown.

while it may be peaceful in these hours, the demonstrations will continue today, even if the cameras aren't here to catch it. they want to focus on mike brown, as well as the youth who they say suffer at the hands of the police. in ferguson, missouri, nick valencia, cnn. rick perry is defiant. lawyers filing a 60-page motion to dismiss charges against him. i defies common sense and violates the state and constitution. it comes from the state funding for the office of d.a. who refused to resign. california turning to technology to fight smartphone theft. jerry brown fought a law requiring kill switches. the cell phones made after july 1, 2015 and sold in california had feature that is make stolen

devices inoperable. it makes it standard on all phones. owners will be able to opt out, if they want. >> 18 minutes past the hour. crisis in ukraine. the president accuses russia of sending soldiers into the country to fight with the separatists. we are live with the latest, next. (male announcer) it's happening. today, more and more people with type 2 diabetes are learning about long-acting levemir®, an injectable insulin that can give you blood sugar control for up to 24 hours. and levemir® helps lower your a1c. levemir® is now available in flextouch® - the only prefilled insulin pen with no push-button extension. levemir® lasts 42 days without refrigeration. that's 50% longer than lantus®, which lasts 28 days. today, i'm asking about levemir® flextouch. (female announcer) levemir® is a long-acting insulin, used to control high blood sugar in adults and children with diabetes and is not recommended to treat diabetic ketoacidosis. do not use levemir® if you are allergic to

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this morning, it appears

ukraine's government will be rapidly changing with poroshenko calling for early elections. the pro-russian insurgency rages on. vladimir putin could be face-to-face today on the sidelines of a trade summit they are both attending. we are live in ukraine. the meeting between the two heads, boy i'd like to be a fly on the wall for that. >> reporter: i wouldn't hold out too much hope that anything will come from this meeting. angela merkel, the german chancellor said the only chance of any kind of peace being reached here is if the russian/ukrainian border is sealed and russia makes sure no more fighters and weapons cross into ukrainian territory. russia denies they are sending

russian troops and weapons crossing over the border. they say the two check points in rebel hands have monitors from the osce, the organization in europe. they are there and can see what's coming through. this is a very, very long order. in the last 24 hours, christine, there have been reports from the ukrainian anti-terror operation of two armored military convoys both in the north of the conflict area and down in the south prompting the accusation that russia is trying to open a second front down in the south. there has been artillery shelling from across the border into ukraine and also last night ukraine says it captured ten russian paratroopers in the conflict zone and they have provided testimony. there's video where they say they were not told they were going to be crossing into ukraine. they thought they were on

military exercises. early in the morning they were put in a military convoy and only the officers knew they would be crossing the border to help the rebels in their fight. as you can see behind me, the conflict really brought devastation in the towns and villages as the ukrainian army and pro-russian rebels. ukraine pushed them out. the rebel strongholds -- from our contacts on the ground in both cities from journalist colleagues, those there that can monitor the situation are finding it very, very dangerous and very difficult to get out. christine? >> thank you diana. >> 25 minutes after the hour now. the u.s. moving in on isis. a new attack strategy may be launched to take down the terror organization. as the islamic militants gain ground in syria, it's too little too late. live team coverage ahead.

the hunt for isis, the u.s. sending new surveillance into syria. the organization making gains in the war torn country. is it time to attack where the islamic militants are strongest? this, as isis makes gains in iraq and pushes the country further toward civil war. live team coverage in london and baghdad. a new audio recording that may have captured the moments that unarmed black teenager,

michael brown was killed by a police officer. why this evidence is surfacing only now. that, as the community pays its final respects. welcome back to "early start," everyone. great to see you. i'm john berman. >> i'm christine romans. it's 30 minutes past the hour. a new front in the battle against isis militants. president obama signing off on flights over syria, concerned about the threat of isis. it could be a prelude to isis targets inside syria. it comes as the militants seized a keierre base in the country. the government says it is ready to accept support from the u.s. and others to fight them. nick paton walsh is live in london. good morning, nick. >> reporter: christine, that decision by the united states to authorize drones, may put the fear into isis. they haven't had to deal with much of an air force in the past. many militants experienced in

iraq during the american military presence there, perhaps knowing how to hide among the population. it will put greater pressure upon them. it's no easy task. spies like human intelligence on the ground to back up what eyes in the skies are showing them. local populations can turn against the drones in the sky. complex task ahead. in u.s. official believes you can properly attack isis. it's a threat to the united states. you have to chase them down in syria as well. you mentioned the syrian government. yes, they will welcome u.s. involvement, but set enough rules, frankly, to make any genuine cooperation possible. washington doesn't want to get

in bed with the assad regime. remember that weapons attack, too? that means isis will further radicalize the opposition turning toward extremists to try to win the war. it's a phenomenally messy conflict. drones may be the most distance washington wants to keep from it. >> a really messy conflict. the united states does not want to embolden bashar al assad. they want him out. by attacking isis, would you strengthen the modern opponents to assad? >> they have been so fractured for years now, the sudden idea of overnight arming them, equipping them is a tough challenge. many say they have had their chance. they have shown they are unable to get along. a fight against isis. isis is more disciplined. the regime equipped by russia

and iran. with the isis advance against those areas, we are facing a crisis for the moderate syrian rebels. christine? >> nick paton walsh, thanks. >> a great job of laying out the stark reality and bleak choices for the u.s. >> really bleak. so many conflicting alliances. you can see how isis has grown up and is able to take advantage of this casm and taken advantage of it well. >> a car bomb in baghdad killing ten and injuring dozens of others. it follows a series of weekend bombing that is killed 20. the fight against isis continues in iraq. the united nations accused them of crimes against humanity including the shia prisoners in

mosul. we are live in baghdad where sectarian violence is on the rise, something that plagued the country well over a decade now. what's the latest? >> reporter: well, john, as you mentioned, this morning, according to police, the car bomb detonating in baghdad killing ten people, moving 34 others. this comes a day after we saw multiple bombings targeting shiite areas here in baghdad and also in the holy shia city in the south of iraq. in baghdad, one of those attacks on monday was a suicide bomber that struck a shia mosque. also in eastern baghdad, in a predominantly shia area. that was claimed by isis saying it was retaliation, revenge for the brutal attack we saw on friday. as you recall, the attack was carried out by suspected shia

militia men killing at least 70 worshippers. when that attack happened, there's a lot of concern seeing an attack, a counter attack, the retaliation and revenge that could reignite the country's sectarian civil war. a lot of fear about that. those kind of divisions and tensions really exploited by isis. as we have seen, they take advantage of the sunni grievances to solidify their presence in this country, especially in sunni areas. over the past few months, i have spoken to officials who have been concerned about this violence. the kind of violence we have not seen here since what is called the dark days of the iraqi sectarian war between 2006-2007. last year, the numbers really spiked. we are seeing it continue into 2014. numbers we have not seen since 2008 when the violence levels

dropped. these officials, western officials have been concerned that the country is one major attack away from that all-out civil sectarian war. >> the sectarian strike undermining the stability needed to fight isis. thanks so much. the family of freed american journalist, peter theo curtis is waiting a reunion they thought would never happen. he was held by militants nearly two years. his mother tells abc after learning he was alive and free, she reached out to the mother of journalist, james foley. >> before i told my daughter, i sat down and sent an e-mail to diane foley. we have been through so much together. i didn't want her to hear it from the media, first. >> do you know what you'll say to him?

>> give him a big hug and cry. >> a mother's relief on her face. the family is incredibly relieved theo is healthy and safe and finally headed home after his ordeal. >> 36 minutes after the hour. new revelations from whistle blower, edward snowden. according to new documents, nsa built up a google-like data base that allowed agencies to search through 850 billion records, including calls, e-mails and internet chats. i-reach has data on foreigners and millions of americans. time for an "early start" on your money. a stock market rally that won't quit. the s&p 500 topped 2,000 for the first time ever yesterday. it did not hold. did not finish. it was a record. the s&p 500s 29th record close

this year. it's been quite a run for investers, even with bumps, the s&p 500 is up 8% this year. that is a nice return half way through the year. since the march 2009 low, it's up 200%. if you invested a grand, it's worth three grand now. i'm not suggesting you time the market. >> i love dollar cost averaging. european stocks are mixed this morning. asian stocks ending their day lower. that's a read of things at the moment. >> i know tv shows. some of the biggest stars on television were on hand at the emmy awards. a good night for "breaking bad." a final send off for outstanding drama. the star had one of the most memorable moments. check this out. >> why did he kiss her? i don't understand. >> he was a guest on seinfeld

years and years ago. they had unfinished business to take care of. someone timed it, it was 11 seconds. other big winners include modern family, a fifth win for modern family. jim parsons took home his fourth gold statue. the outstanding actress for the role in "the good wife." some high moments. it was an emotional billy kris toll paying tribute to his late friend, robin williams. >> it's very hard to talk about him in the past because he was so present in all of our lives. for almost 40 years, he was the brightest star in a comedy galaxy. robin williams, what a concept. >> you could see he's still processing it himself. they were great friends all those years. >> 39 minutes past the hour.

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moment michael brown was shot by police. this was recorded by a ferguson resident during a video chat with a friend. listen to the audio, then hear from the attorney of the man who captured the shots. listen. >> you are pretty. [ gunfire ] >> you are so fine. >> in his apartment, he was talking to a friend on the video chat. he heard loud noises. at the moment, at the time, he didn't realize what he was hearing until afterwards. it just happened to have captured 12 seconds of what transpired outside of his building. >> they are investigating. they have interviewed her client about the audio recording. it comes on the same day michael brown was laid to rest. thousands in attendance. the brown's request for peace seems to be holding.

nick valencia has more. >> reporter: it's been another day of peace and quiet in the streets of ferguson in the overnight hours. we saw a dwindling of the police force as well as the demonstrators showing their solidarity for mike brown. those on the streets of ferguson heeded the message of their helders and of mike brown sr. who urged people to keep the peace respectful on the day his son was laid to rest. here in ferguson, in the early morning hours, that is what we see. this is the approved assembly area for demonstrators. if you look around, it is largely empty. there's a small contingent of folks here who spent the night here overnight. they will continue their demonstrations even when the cameras leave. there is a large contingent of support for officer darren wilson. not here in ferguson, it's in st. louis, 30 minutes from here.

his supporters raised $400,000 for his defense and going toward his livelihood. he's been mischaracterized and fear he will, one, never be able to be a police officer and two, never be able to live in st. louis again. here, behind me, it's been clear to me and told this group is for mike brown. it may be peaceful in these hours, the demonstrations will continue today, even if the cameras aren't here to catch it. they want the story out here. they want the focus on mike brown as well as the youth here who they say suffer at the hands of the police. in ferguson, missouri, nick valencia, cnn. >> thanks to nick for that report. >> the california earthquake shows the total loss could reach $1 billion. the damage alone is hundreds of millions of dollars. it's expected to be much, much higher. it really hit the wine country.

the damage could have been much worse. most of the 2013 vintages were not already shipped off. a new hope for peace in war-torn gaza. could israel and hamas be ready to return to cease-fire talks? we are live with the latest after the break.

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israeli air strikes keep coming in gaza. the latest palestinians say killed two and wounded 20 in a blast that hit one of the tallest buildings. they may be gaining traction. israel's prime minister is considering a month-long cease-fire with hamas. ben has the latest on that in jerusalem, good morning, ben. >> reporter: good morning, john. what we are seeing now in gaza seems to be an israeli policy of shock and awe overnight. they took down two apartment buildings, one of them 15 floors, another somewhat smaller. it's part of this new policy that went into effect the end of last week. at the beginning of the war, they shot missiles into individual apartments or

offices. now, they are taking entire buildings down. it's their attempt to up the pressure on hamas to come to an agreement to end the fighting. in one instance, there was a building at about 11:00 last night, local time, that received three knocks on the roof, warning shots, telling people to leave. they left the building at midnight. it was hit in two air strikes when people went back to see if there was anybody in the building, emergency staff arriving another air strike occurred in which 20 people were injured. this seems to be their new tactic in gaza. regarding efforts on the diplomatic line, we did hear from the israeli prime minister, benjamin netanyahu, he's considering a one-month cease-fire. there is mounting pressure on both sides to bring an end to

the fighting. the israeli academic year, school year, is about to end. this is the 50th day of this war. many people on both sides, in gaza and israel feel enough is enough. it's time to stop. >> ben in jerusalem for us. thanks so much. two arab countries, egypt and the united emirates launching targets inside libya. u.s. officials say they have attacked twice hitting militia positions in tripoli. the u.s. says it two allies launched the strikes without informing the obama administration beforehand. >> they are doing it without u.s. approval, condolence or knowledge. 53 minutes after the hour. ebola taking a toll on health workers. more than 120 died argument the world health organization with 120 fighting the disease. one of them, a british nurse

remains in a london hospital. she was flown home. making matters worse, the secrecy of patient who is contracted ebola is leaving millions vulnerable. many patients refuse to name people they have come in contact with. 40% to 60% of people who have contact with the patients may be unknown. >> this is why health officials are terrified about the spread of the disease. the infrastructure and the mistrust of the doctors that are coming in. 54 minutes past the hour. is burger king getting an assist from warren buffett in the tax deal? this is getting interesting. an "early start" on your money is next.

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58 minutes past the hour. time for an "early start" on your money. the s&p 500 topped 2,000 for the first time yesterday. didn't finish above 2,000, john berman, but it managed the 29th record high close this year. u.s. stock futures up a little bit. it will be another record day. european stocks mixed right now. warren buffett investing in burger king's plan to merge with tim horton's. it's called inversion. buffett will provide 25% of the deal's financing. that puts him in the middle of a

heated debate. lawmakers in the white house called inversions unpatriotic. >> it certainly isn't fair to the millions of middle class families in this country that don't have that option. >> the white house and others encouraging congress and others to close that loophole. generation ex causing gridlock in the market. half of them are under water. that means they can't sell their homes for what they owe on their mortgages. that presents millenials from purchasing them. baby boomers can't sell their larger homes. the percentage of homeowners under water fell to 17% compared to 24% a year ago. the trend is improving, but general exers there in the center causing gridlock between millenials that can't buy in.

we are genx, right? >> no one cares about gen x. >> "early start" continues right now. the hunt for isis u.s. drones to fly over syria search for islamic militants. air strikes could follow, escalating america's role. this, as isis gains more ground in iraq and our investigators are getting closer to identifying the isis jihadist that killed american journalist, james foley. breaking overnight, a new audio recording surfaces in the death of michael brown. attorney's claiming the sound of gunshots offer insight into the police shooting of the unarmed teenager as the city mourns the tragedy. the very latest overnight, coming up. good