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Early Start with John Berman and Zoraida Sambolin

Houston Hammered by Heavy Rain; Two Texas Families Missing in Flood; Terror on the Blanco River; Iraqis Launch Offensive Against ISIS; Stocks Fall on Fed Fears. Aired 5:30-6a ET

Aired May 27, 2015 - 05:30   ET

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


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[05:30:30] CHRISTINE ROMANS, CNN ANCHOR: Breaking news this morning, death toll rising in Texas. Historic flooding leaving communities under water and it is not over yet, more danger on the way ahead.

Welcome back to EARLY START. I'm Christine Romans.

JOHN BERMAN, CNN ANCHOR: I'm John Berman. It's 30 minutes past the hour right now. The breaking news this morning, tens of thousands in Texas and Oklahoma cleaning up, following historic flooding there, and they are now bracing for the very real possibility of more.

At least 18 people are dead. More than a dozen people are still missing. In Houston where the storms killed at least five people, the crews continue to rescue folks trapped in their homes.

At least 2500 waterlogged cars line the streets and highways in Houston abandoned by people who were caught out in the flooding, despite some of the warnings. This is Texas Governor Greg Abbott.

(BEGIN VIDEO CLIP)

GOVERNOR GREG ABBOTT (R), TEXAS: Don't drive in the rising water. You know the common phrase "turn around, don't drown." It has a sense of reality to it right now that we need everyone in the state of Texas to heed.

(END VIDEO CLIP)

ROMANS: Governor Abbott called the flooding the worst Texas has ever seen. He declared a disaster emergency in at least 40 Texas counties. He deployed the National Guard to help with the recovery.

In Houston, officials say some areas were badly damaged by the flooding, while others were largely unaffected. Key to understanding the pattern, the many bayous that wind through this low-lying city.

For the very latest I want to turn now to CNN's Ed Lavandera in Houston for us.

ED LAVANDERA, CNN CORRESPONDENT: Emergency officials here in the city of Houston described the flooding scene around this area as a mad house. More than 1,000 cars stranded on roadways because people racing and rushing to get out of the ways of these walls of water that flowed out of many of the bayous that you see throughout many parts of the city of Houston.

This is a bayou that cuts and winds its way normally quietly around downtown Houston. But as you can see, from one embankment to the other, the water levels here rose dramatically, in fact, at some point, reaching just to that bridge you that see behind me. These waters spilled out everywhere.

Emergency officials here in Houston say there are still a number of people that are considered to be missing. So search and rescue operations continue. Waiting for these floodwaters to recede so they can get into some of the hardest hit neighborhoods and continue the search processes in homes and throughout neighborhoods.

You know, a very dramatic efforts going on. We saw some rather ingenious kind of operations going on as well. Fire rescue teams trying to get to people making 911 calls, abandoned ambulances and lower-lying cars, traded them in for public works vehicles.

The massive trucks to use those for makeshift ambulances to pull people out some of the hardest hit neighborhoods so a dramatic scene here. The good news for most of the day it did not rain.

However in the coming days, more rain is expected to be in the forecast. And that means these floodwaters could rise up quickly again. And state officials across the state are warning people, once these flash flood situations emerge to react quickly.

We've heard time and time again from people around the state, that it takes just a matter of minutes. Water around their ankles and then minutes later, they find themselves in knee deep water so state officials urging people to react quickly.

Take the warning seriously when these flash flood warnings go in effect -- John and Christine.

BERMAN: Another area that's seen major damage is Hays County that's between San Antonio and Austin. San Marcos River just tore up trees and flooded homes up to four feet of water. Crews had used a bulldozer to rescue people stranded in their homes by the rising water.

ROMANS: Elsewhere, in Hayes County, the threat came from the Blanco River. The record rainfall drove the Blanco from its usual depth of 5 1/2 feet to over 40 feet. That's about 28 feet above its flood stage. The raging water knocked over trees and washed away 400 homes.

BERMAN: Many of those homes were in the Hayes County town of Wimberley. The Blanco River tore through the village, ripping bridges off their piers, uprooting trees, wrecking cars. Scores of riverside homes were torn off their supports and carried away. Officials say at least three people were killed in Hayes County, 13 people there are still missing.

ROMANS: Among those missing, 11 people who were enjoying the holiday weekend in a family cabin in Wimberley. When the skies opened up, the river tore from its foundation.

[05:35:07] The cabin floated down the river and hit a bridge. That's when its roof was torn off. That's when one of the victims, Laura McComb, now missing with her two small children, a boy and girl, 4 and 6 years old. She used her cell phone to call her sister. She described their desperate situation.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She called me and said, I just want you to know, the ceiling has caved in and the boat -- the house is floating down the water. And tell mom and dad that I love them. I love you and pray.

(END VIDEO CLIP)

ROMANS: So terrifying. CNN's Ana Cabrera is in Wimberley with the latest on the destruction there.

ANA CABRERA, CNN CORRESPONDENT: John and Christine, the devastation here in Wimberley is remarkable. We're hearing from residents the water rose so fast and with such force it was like a tsunami hit. You can see the house behind me buckled.

Now that the water's receded, you realize just how high up the water came. The Blanco River lies just beyond those trees. At the peak of the storm, the river rose more than 30 feet in just two hours.

We got a chance to visit the heart of the devastation, where we saw home after home torn to bits and pieces. Some homes are completely gone nothing left but the concrete foundation.

In all, more than 1,400 homes were damaged or destroyed just in Hayes County alone. We talked to one man who lost his home and he said he was there with eight other people when the river started rising.

Many of them were asleep, it was dark. They rushed to higher ground. While they couldn't see much, what they heard was horrific.

(BEGIN VIDEO CLIP)

NEAL TINSLEY, RESIDENT: just loud cracking and breaking. You can imagine it was probably houses break ago part and flowing down the river.

CABRERA: Must have been terrifying.

TINSLEY: It was. Really was. But I got out, so that's good.

(END VIDEO CLIP)

CABRERA: The water was so powerful it ripped trees right out of the ground. Some of those trees were 500 or 600 years old, we're told. They've endured past floods. This one was too much -- John, Christine. BERMAN: Our thanks to Ana Cabrera in Wimberley. The severe storms hit the Oklahoma City area as well. There was a confirmed tournament that touched down in Custer County and also one right here in Blaine County. The storms dropped hail, but so far, no significant damage has been reported.

ROMANS: And guess what, the region is not finished with the threat of severe storms and flooding. More water on the way. Meteorologist Pedram Javaheri joins with more on that.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Good morning. A devastating story out of Texas and really much of this region continuing, you take a look at the images. Thousands of vehicles stranded in a four to six-hour period.

And unfortunately, we're now pushing up to 200 gauges in the rivers flooding in this region. It will make its way downstream with the nature of how the volumes of water want to move to the Gulf of Mexico in the end.

But of course, this is a concern if you're getting heavy rainfall in Texas and Oklahoma. Over the last seven days, some of the heaviest rainfall in the most densely populated region in the purple, northern of San Antonio and Houston and Dallas.

But Oklahoma City as well, 20 inches have come down since the 1st of May. That's a 100-year event that's taking place across OKC, unfortunately, still additional rainfall especially late this week, into this weekend, about 1 inch to 2 inches possible around Houston.

You get up around Eastern Oklahoma, 4 to 6 inches rainfall possible. And looking for next week above average conditions for rainfall next week as well, guys.

BERMAN: Thanks to Pedram for that. Happening right now, Iraqi Army is claiming new gains against ISIS as they try to take back territory from the terrorists. We're live in Baghdad with the very latest, next.

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[05:42:36]

BERMAN: This morning, the White House is standing behind controversial comments made by Defense Secretary Ash Carter about the stunning fall of Ramadi. Carter has questioned the Iraqis' will for fight, claiming that they outnumbered ISIS when they fled Ramadi.

The Iraqi government officials have strongly rejected the accusation, but the White House is backing what the defense secretary said.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: What Secretary Carter said, is consistent with the analysis that he's received from those who are on the ground, who are looking at the situation. UNIDENTIFIED MALE: Does the White House agree with that assessment with defense secretary the Iraqi forces just showed no will to fight?

EARNEST: Well, that's certainly has been a problem that we've seen in the past. That's what allowed ISIL to make significant gains last summer.

(END VIDEO CLIP)

BERMAN: Iraqi government now claims that its forces are launching a sweeping operation to retake Ramadi and other territories that have fallen to ISIS. Of course, Shia militias are a big part of operation.

Let's bring in our senior international correspondent, Arwa Damon watching the developments from Baghdad. Good morning, Arwa.

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, John. And that massive operation taking place in both Anbar Province where Ramadi is located and Salaheddin.

The aim is to cut off ISIS' logistical supply routes, prevent the organization for having a capability to regroup and move its weapons and fighters around the key territories, as the forces continuing to build up around Ramadi itself.

According to the Iraqi state government television, that city is currently surrounded on all sides. But this is a battlefield that it's very much a patchwork of multiple crisscrossing front lines.

We were along one them. That is located right between Anbar and Salaheddin, that particular front line being held by one of these Iranian-backed Shia paramilitary forces that advance through and cut off one of those key ISIS logistical supply routes.

Interestingly, their commander was saying it was not the U.S. that they were relying on. In fact, he blamed the Iraqi government's dependence on America for the fall of Ramadi.

And we did see Iranian advisers on the ground though we were not allowed to film or speak to them. ISIS though is striking back, having just hit some Iraqi combat outposts in Anbar with three suicide bombers just a short while ago -- John.

BERMAN: The battle very much on. Arwa Damon for us, thanks so much.

ROMANS: Time for an EARLY START on "Your Money" this morning, U.S. stock futures are up slightly after the ugliest day of the month yesterday.

[05:45:06] The Dow fell 190 points about 1 percent on the fear that the Federal Reserve will hike interest rates soon. We're seeing strength in the housing and job markets as the economy improves. It gives the fed confidence to raise interest rates in the next few months.

You will soon be able to get your Pizza Hut fix without the artificial ingredients. Yum Brands is cutting artificial ingredients. It starts with Pizza Hut, all the fake colors and fake flavors will be gone by the end of July.

And then Taco Bell will follow suit by the end of the year. All of this is in response to demands young customers want all natural ingredients even in their junk food.

BERMAN: It's great. It's not going to make the food healthy. You don't eat it because it's healthy.

ROMANS: Taste. When I go to Taco Bell, I know exactly how it tastes and that's what I want.

BERMAN: Let's take a look at what's coming up on "NEW DAY." Chris Cuomo comes up.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": I like to hear Christine making a run for the border there. We are going to stay on the flooding down in Texas and Oklahoma. Search and rescue is still very much underway. The death toll is growing.

This isn't just about water. It is about life and how it's lived and by people struggling to do just that. A dozen people remain missing. So we're going to take you on the ground and show you what life is like right now.

We're also going to get deep into Cleveland today. This is supposed to be change, in quotes. Tough reforms handed down by the Department of Justice, but will they work? Will it be enough? What does it take to change police culture?

Because there's no question with the Cleveland police that they had a history and culture that wasn't working to all communities' best effect. Then we're going to take on the lawyer for Tamir Rice's family.

He was that 12-year-old boy, remember, who was killed by a Cleveland officer who said he thought he had a weapon. We're going to have a lawyer to talk about how that case may be the next flash point -- John and Christine.

ROMANS: Thanks, Chris.

BERMAN: All right, coming up, today, a new candidate will enter the presidential race. Who is it? The big reveal, after the break.

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[05:50:53]

ROMANS: More breaking news, six arrests made this morning in Switzerland, as the U.S. Justice Department gets set to announce corruption charges against senior officials at FIFA, the world's governing body for soccer.

Following years of investigation, U.S. prosecutors have issued arrest warrants for 14 people, accusing them of taking bribes or kickbacks. FIFA officials saying this morning that the arrested officials will not be automatically suspended --

BERMAN: No problem here.

ROMANS: FIFA members in Zurich today for an election that could give Sepp Blatter his fifth term as president. He is not among the group being charged, but he is being investigated.

BERMAN: A lot of people saying there are astounding levels of corruption inside that body. It would be interesting to see what happens.

The IRS has been hacked. The personal tax information of more than 100,000 Americans breached. The agency says it's part of elaborate scheme by online thieves to steal identities and claim fraudulent tax returns.

In 2013 alone, the IRS paid $5.8 billion in bogus returns to identity thieves. The IRS commissioner suspects the hackers are part of an organized syndicate.

ROMANS: A federal appeals court delivering a blow to President Obama's executive actions on immigration denying the administration's request to begin granting legal status and work permits to millions of undocumented immigrants while lawsuits play out.

If the White House cannot get the Supreme Court to lift the injunction that's delaying the immigration policies the president made, the president could be out of office before that matter gets resolved.

BERMAN: A big kickoff rally for Bernie Sanders, the Vermont senator formally launched his campaign for president in the lovely shores of Lake Champlain in Vermont. Sanders outlined his vision for what he calls a political revolution --

ROMANS: Free college.

BERMAN: Free college -- the billionaire class saying he is putting the top 1 percent on notice. The self-described Democratic socialist probably a long shot as a challenger to Hillary Clinton for the Democratic nomination.

ROMANS: He wants free public college, state, public college paid for by taxes on Wall Street.

Meantime, another Republican maybe joining the race for the White House, former Pennsylvania Senator Rick Santorum expected to announce today whether he will make another run for president in 2016. Santorum was runner up to Mitt Romney for the Republican nomination in 2012.

All right, believe it or not, a cigarette company is one of the most valuable brands in the world. How anti-smoking laws have helped that value up next.

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[05:57:09]

ROMANS: Welcome back. I'm Christine Romans. Let's get an EARLY START on "Your Money" this morning. U.S. stock futures barely budging, but there was a big move yesterday, the Dow down 190 points, the worst day so far this month.

The housing market is improving so is consumer confidence, the job market improving. That's all good news, right? Sort of, a strong economy could mean an interest rate hike is coming very soon. That was the problem in the market yesterday.

The most valuable brand in the world, Apple, Apple's brand is worth about $247 billion according to group, Brand Z. That's up 67 percent in the last year with Apple becoming a bigger player in China and other markets.

Also in the top five, Google, Microsoft, IBM, Visa, and here's one that you may not believe, Marlboro is the tenth most valuable brand in the world. The crackdown on cigarette marketing has actually kept its competitors from challenging Marlboro's worldwide dominance.

Lilly Pulitzer causing outrage online this morning, an employee there, posting fat shaming cartoons in the Philadelphia office. One of those cartoons read, "Just another day of fat, white, and hideousness, you should probably kill yourself."

And another one said, "Put it down carb face." Lilly Pulitzer, the company apologized for that display saying it is a female dominated company and the cartoons on someone's private work space do not reflect their values.

BERMAN: The death toll is rising in these historic Texas floods and there is more rain on the way. "NEW DAY" starts right now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Some homes completely gone, nothing left but the concrete slab.

UNIDENTIFIED MALE: Houses just breaking apart and flowing down the river.

UNIDENTIFIED FEMALE: Must have been terrifying.

UNIDENTIFIED MALE: It was.

UNIDENTIFIED MALE: Racketeering, money laundering, wire fraud and tax evasion.

UNIDENTIFIED FEMALE: The U.S. is making arrests in a corruption case.

BERMAN: FIFA is not a transparent body at all. This is big.

UNIDENTIFIED FEMALE: The battle to retake Ramadi. UNIDENTIFIED MALE: This is an issue of leadership, not of will.

UNIDENTIFIED MALE: ISIS will not prevail here because they don't have a message over the course of years that will resonate with the population.

UNIDENTIFIED MALE: A new way of policing in the city of Cleveland.

UNIDENTIFIED FEMALE: The new 105-page consent decree calls for the department to retrain and review its officers.

UNIDENTIFIED MALE: We make very easy targets because for the most part the police officers can't fight back.

(END VIDEOTAPE)

CUOMO: Good morning. Welcome to your NEW DAY. It's Wednesday, May 27th, 6:00 in the east. The flooding is overwhelming in parts of Texas and Oklahoma. The death toll is growing this morning, at least 18 people now dead, five of them in Houston. Several communities completely destroyed by the rains.

ALISYN CAMEROTA, CNN ANCHOR: And 13 people still missing, hopes of finding them alive fading.

[06:00:00] Time is of the essence because another round of storms is moving into the region.

CNN has complete coverage this morning for you beginning with Rosa Flores. She is live in Houston, one of the worst hit areas. Rosa, what are you seeing this morning?