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Obama: No Complete Strategy Yet For Training Iraqis; Iraqi Troops Prepare For Battle To Retake Ramadi; Manhunt Underway For Escaped Killers; 2010 World Cup Organizer Under Pressure; Seven Deaths In South Korea MERS Outbreak; Prison Escapees' Violent Pasts; TSA Missed 73 Workers With Links To Terrorism; Migrants Flock By The Thousands To Greece; Triple Crown Winner Will Get Busy With Breeding. Aired 3-4a ET

Aired June 09, 2015 - 03:00   ET

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


ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers here in the United States and all around the world. I'm Rosemary Church.

BARNETT: I'm Errol Barnett. Your last hour of the day with both of us, this is CNN NEWSROOM.

We begin with the latest in the fight against ISIS and some new information now on the terror group's leader. A senior U.S. official says the United States had intelligence for months on possible locations for Abu Bakr al-Baghdadi.

But for various reasons the U.S. could not launch air strikes or raids targeting him. It's believed Baghdadi now stays in populated areas knowing the U.S. won't risk killing civilians.

CHURCH: Meantime, U.S. President Barack Obama sat down with Iraq prime minister on the sidelines of the G7 Summit Monday and reiterated the U.S. pledge to help boost training for Iraqi forces to battle ISIS.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: We are reviewing a range of plans for how we might do that, essentially accelerating the number of Iraqi forces that are probably trained and equipped and have a focused strategy and goo leadership.

When a finalized plan is presented to me by the Pentagon then I will share it with the American people. It's not -- we don't yet have a complete strategy because it requires commitments on the part of the Iraqis as well about how recruitment takes place, how that training takes place and so the details of that are not yet worked out.

(END VIDEO CLIP)

BARNETT: As the U.S. works on that strategy, Iraqi troops are closing in on Ramadi in Anbar Province. ISIS captured that city last month.

CHURCH: The terror group is now threatening a key military base nearby where Iraqi forces and militia are said to be preparing an all- out assault on the extremists. Nick Paton Walsh was with the troops on the front lines and here is his exclusive report.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): A long edgy road leads to the Iraqi base, the closest the military has taken western television towards Ramadi since it fell to ISIS, huge, sprawling.

It's meant to be where soldiers and militias both Sunni and Shia are amassing to retake Ramadi from ISIS. But we're told they're mostly deployed outside.

And here it is the Iraqi army along the northern edge of their base in a vicious front line with ISIS along the river. ISIS has blocked a dam upstream to lower the tides and help them attack.

(on camera): It is minute by minute here. The situation can change and that river bed, very much the front line. They have been using the water from the lake to keep its levels high. But still, as you can hear, ISIS is very close.

(voice-over): They see and watch ISIS daily. But say, they are overlooked by coalition air strikes. They're supposed to give us some support now from war planes, he says. We're in control of the ground. All we need is air support.

Here, caught between the ISIS towns of Ramadi and Fallujah, they face a thousand ISIS, they think but here he says he sees only a few with long beards and a flag here. But soon, ISIS fire back. This is what happens when you poke that snake.

They lead us out. This, the Iraqi army stronghold where they speak of readiness and glory to come yet seem busied by an enemy far too close. Nick Paton Walsh, CNN, Habania, Iraq.

(END VIDEOTAPE)

BARNETT: Now it's been a year since the Iraqi city of Mosul fell to ISIS causing hundreds of thousands to flee their homes. For the latest we are joined now live by Jomana Karadsheh in Amman, Jordan.

Jomana, we wonder what's become of the, what, some half a million people who are forced to flee their homes in Mosul this time last year? Where are they now?

JOMANA KARADSHEH, CNN CORRESPONDENT: Well, Errol, it's been a year as you mentioned since the displacement in Mosul since Iraq's second largest city fell to ISIS.

[03:05:07] Also many other cities in Northern Iraq did fall to the terror group, too, and it's been 18 months since ISIS took its first major city in Iraq, Fallujah.

And since then, Errol we are looking at a staggering figure, more than 3 million Iraqis have been displaced by the terrors of ISIS and also just recently it doesn't look like this is going to end anytime soon. You remember those images we saw coming out of Anbar Province, tens of thousands also displaced there from the capital of that province, from Ramadi, from the fighting around there, too.

So really a humanitarian disaster as we've heard from the United Nations and from other organizations saying they are in desperate need of more aid. They are in desperate need of money to provide shelters for these displaced people.

We have met with over the past year, Errol, we have met with a lot of these people, who have been displaced, some of them, a lot of them actually from Iraq's minorities like the Yazidis, the Christians, who have been forced to flee their homes or face death by the terror group.

Some have left the country, many others are living in refugee camps, makeshift shelters, some of them using schools in other cities where they are living in really terrible conditions so a real humanitarian disaster.

And when we talk about the war on ISIS and the battle against it, one must keep in mind the really humanitarian toll this crisis has taken on Iraqis and with really no end in sight at this point one year on.

BARNETT: And what makes matters worse is in addition to the 3 million displaced that you've mentioned, it's estimated that you have a million people essentially trapped in Mosul living under ISIS control. Just remind us of the brutal reality those Iraqis are facing today.

KARADSHEH: Absolutely. In many of those cities that are under the control of ISIS, of course, Mosul in Iraq definitely comes to the focus because it is Iraq's second largest city. It is a main urban center under the rule of ISIS.

People living under the brutal rule, you know, public beheadings, all sorts of things that we have seen come out, these horrific images, executions, everything, the kind of rule that people have lived under over the past year has really been unimaginable.

And one needs to keep in mind that not everyone has the ability to flee, to leave. Some were lucky enough to have been able to run out of Mosul with the clothes on their backs last year when ISIS first took over their city.

But others are still trapped there and you know, talking to some people over the past few months, who still have relatives in that city, they talk about how difficult it is for people to communicate with the outside world and tell their loved ones what life is like under the brutal rule of ISIS.

And really hoping that someday, something is going to happen and free them from that brutal rule, Errol. There was this talk that we know that the Iraqi officials, the U.S. officials there was some optimism that we could see some sort of a move to quote/unquote "liberate" Mosul from ISIS this year. But it's looking more and more unlikely if we look at the current situation in Iraq, what's been going on the ground in that fight against ISIS, the major setbacks that we have seen in recent weeks. It would seem that it is still far from happening any time soon -- Errol.

BARNETT: That's right. As we heard from the U.S. president in the G7, the U.S. is essentially waiting for its Iraqi counterparts to sign off on this final plan, which will include changes on the recruitment and training for Iraqi forces. As people suffer, efforts are being made to stamp out ISIS. Jomana Karadsheh live for us today out of Aman, Jordan. We appreciate it -- Rosemary.

CHURCH: To the United States now and the search is on in New York for two killers who escaped from a maximum security prison over the weekend. Police say they used power tools to breakthrough steel walls. Now authorities are questioning a woman who worked with the convicted inside that prison to see if she helped them get out. Randi Kaye has more.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): They were supposed to be in their beds in adjoining cells but instead before dawn, Saturday, a routine check turned up something else.

ANDREW CUOMO, NEW YORK GOVERNOR: They weren't dummies. But they were -- they had clothing on and it looked like people were sleeping in the bunks with a sweatshirt hoodie on.

KAYE: One of a handful of clever moves by this crime duo, Richard Matt and David Sweat, both convicted killers.

[03:10:05] They were last seen around 10:30 Friday night in their cells during a standing count. Their bunks were also checked every two hours during the night. But it wasn't until at 5:30 a.m. Saturday morning that a guard sounded the alarm.

COMMANDER ANTHONY ANNUCCI, NEW YORK STATE DEPARTMENT OF CORRECTIONS: A search revealed there was a hole cut out of the back of the cell through which these inmates escaped.

KAYE: A hole in the cell. The men cut their way right through a steel wall using power tools that still no one knows how they got. The escapees then somehow followed a cat walk that is six stories high, eventually snaking through an elaborate maze of pipes before shimmying through tunnels.

(on camera): The prisoners got their first taste of freedom in years when they popped out of that manhole right there at that yellow tape. This is actually the closest that we are allowed to get to it.

It was a pretty bold exit plan because right over there is a health club and it's surrounded by homes in this quiet neighborhood. Anyone who might have been outside and seen them could have quickly called police. (voice-over): The manhole is a block and a half from the prison where New York Governor Andrew Cuomo retraced the men's steps. These are dangerous men. Sweat was serving life without parole for killing a sheriff's deputy back in 2002.

Matt was behind bars for 25 years to life after murdering and dismembering a man back in 1997. The convicts are the first to escape from maximum security at Clinton Correctional Facility since it opened in 1865 leaving behind this note dripping with sarcasim. It reads "Have a nice day."

(on camera): So many unanswered questions, how did this prison break go unnoticed with regular bed checks? How could the guards not have heard the sounds of the power tools and perhaps the biggest question of all, where did those power tools come from?

UNIDENTIFIED MALE: We are looking to see if possibly a civilian employer or contractor was assisting this escape.

KAYE (voice-over): Meanwhile despite more than 150 tips, a $50,000 reward for each man and intense search efforts involving more than 250 law enforcement, helicopters and blood hounds, there is no sign of the escapees.

(on camera): So there are these check points all over town as they are trying to find these guys. Hello.

UNIDENTIFIED MALE: Open your trunk, please.

KAYE: Sure, I have to open the drunk so they can look inside. It should be open now.

UNIDENTIFIED MALE: Yes, it is.

KAYE: Going through it, going through the luggage, which is back there, making sure there is nothing underneath it.

UNIDENTIFIED MALE: You're all set, ma'am.

KAYE: All set? Good to go? Thank you. You can see why with check points like these all over town, the community is really on edge, but these guys are determined to find those two inmates.

(voice-over): With the prison just 25 miles south of the Canadian border, authorities are concerned, warning those to the north there are killers on the loose. Randy Kaye, CNN, Dannemora, New York.

(END VIDEOTAPE)

BARNETT: HSBC is slashing 1/10 of its global work force. Europe's largest bank says it is cutting up to 25,000 jobs and selling off operations in Brazil and Turkey. The change is a part of a restructuring plan to save about $5 billion within two years. Some of the bank's operations will move to low-cost locations and there are plans to expand operations in Asia. CHURCH: As more allegations in the FIFA investigation surface, one public official is staying tight lipped about the 2010 World Cup. Our efforts to get a comment, that's still to come.

BARNETT: Plus the World Health Organization arrives in South Korea as Middle East Respiratory System claims another life. Stay with us.

(COMMERCIAL BREAK)

CHURCH: Welcome back, everyone. Football's world governing body says there are no legal grounds to take away the World Cups from Russia and Qatar.

BARNETT: Now FIFA says the 2018 and 2022 bids were awarded by a democratic vote. Russia and Qatar have denied all bribery allegations. But a former adviser to FIFA president, Sepp Blatter, tells CNN he wouldn't be surprised if bribery was a part of the bidding process. Guido Tognoni says if there was a problem, it has more to do with FIFA than Russia or Qatar.

CHURCH: The 2010 World Cup in South Africa was also under scrutiny. Listen to this, the "Sunday Times" of London reports it has secret tapes that show Morocco actually won the vote. Jonathan Kalvok has been investigating FIFA for years.

(BEGIN VIDEO CLIP)

JONATHAN CALVERT, EDITOR, "SUNDAY TIMES" INSIGHT TEAM: Many, many years ago in 2010 we did an undercover investigation in which we posed as lobbyists and went to FIFA officials. As a result of that, on tape we have these officials making all sorts of claims of about what happened in the 2004 contest for the 2010 World Cup.

And among them were lots of claims about Morocco. There were claims that they had paid people. People were saying they offered me payment for my vote. And so there was a huge amount of information on there.

What we found interesting about that is that we provided all this to FIFA five years ago and yet, FIFA did absolute nothing about those allegations.

(END VIDEO CLIP)

CHURCH: South Africa has consistently denied all bribery allegations. But there is growing pressure on the 2010 World Cup organizer to break his silence about the country's bid.

BARNETT: We want you to watch this here because our Diana Magnay tried to get a word with him at his new job. Watch this.

(BEGIN VIDEOTAPE)

[03:20:01] DIANA MAGNAY, CNN CORRESPONDENT (voice-over): For a man just weeks in the job, the new mayor of Port Elizabeth is keeping a very low profile.

UNIDENTIFIED MALE: You can't do this.

MAGNAY (on camera): This is a public space.

UNIDENTIFIED MALE: I'm in a public space.

MAGNAY (voice-over): That's because the new mayor of Port Elizabeth is Danny Jordaan, the president of South Africa's Football Association and the man who ran South Africa's bid to host the 2010 World Cup.

Now drawn into the FIFA scandal himself after a letter emerged dated December 2007 where he acknowledges the $10 million sum at the heart of the FBI investigations and suggests it be deducted by FIFA from funds earmarked to go to South Africa's local organizing committee.

South Africa's minister of sports has consistently denied any form of bribery as alleged by the U.S. attorney general in its recent indictment.

FIKILE MBALULA, SOUTH AFRICAN MINISTER OF SPORT: The payment of 10 million grand U.S. dollars was made to an approved program above board does not equate to bribery.

MAGNAY: But the man who suggested how that payment should be made has not shown up to answer questions.

(on camera): In the run up to the World Cup, Danny Jordaan loved the limelight. He was the face of South Africa's bid, but it's a very different story now.

SAFA says that it will be the ministry of sports dealing with all issues pertaining to the FIFA affair because some of the media, they say are distorting this issue for their own expediency.

(voice-over): South Africans have had to listen to their fair share of alleged corruption scandals lately, scandals which reach to the very top.

UNIDENTIFIED FEMALE: The scandal from the president to everybody. Everybody they have just got their hands dirty.

MAGNAY: But there is national pride at stake and the pride of locals about their mayor.

UNIDENTIFIED MALE: Nothing has been proven yet.

MAGNAY: You think the FBI will come knocking on his door?

UNIDENTIFIED MALE: They are not allowed to come here.

MAGNAY: Knocking on the door of city hall or just standing outside it proved problematic for us, pushed back by security as we tried to ask questions.

UNIDENTIFIED MALE: Do you have any comment?

MAGNAY: Begging the question why Port Elizabeth's new mayor is being quite so cagey.

UNIDENTIFIED MALE: What do you have to say about your letter that you wrote?

MAGNAY: Diana Magnay, CNN, Port Elizabeth, South Africa.

(END VIDEOTAPE)

BARNETT: Now in another sports candle, the chairman of U.K. Athletics confirms that Mo Farah's medical data will be reviewed for evidence of doping. "The Guardian" reports the Olympic champion is heading to the U.S. to get answers from his coach, Alberto Salazar. Farah has not been accused of doping.

CHURCH: But a BBC investigation alleges Salazar violated anti-doping rules and duped U.S. athlete, Gaylen Rupp, when he was 16 years old. Robb and Salazar deny the claims.

BARNETT: Now to South Korea where authorities are trying to contain an outbreak of the Middle East Respiratory Syndrome. Seven people have now died of MERS and 95 people in total have been diagnosed for the virus.

CHURCH: All MERS patients have contracted the disease in health care facilities. South Korea has quarantined nearly 3,000 people and more than 2,000 schools are closed as a precaution.

Want to go live now to Kathy Novak in Seoul who has been following this story very closely. Kathy, a WHO team has arrived in South Korea. What is that team doing to try to help authorities there to contain the potentially deadly MERS virus?

KATHY NOVAK, CNN CORRESPONDENT: Well, the World Health Organization team is working with the team of Korean experts to basically retrace the steps as it were of the virus, Rosemary, and try to get more details about exactly how it was transmitted.

As you mentioned, this has been contained within hospitals, and as the days are wearing on and more promises of transparency have come out, we are getting more details from the government about what hospitals are affected and where the patients stayed and how it was transmitted.

But the WHO is here to do even more investigation to help local authorities to try to figure out exactly what happened here and how this turned out to be the biggest outbreak outside of Saudi Arabia and also of course work with the government to try to figure out how they can stop this from spreading beyond the hospitals and into the public.

That's why these very harsh measures are being taken on people who are being quarantined and more than 2,000 schools, as you mentioned, are closed -- Rosemary.

CHURCH: Yes, that is critical. I wanted to ask you what has been the fallout from South Korea's slow response to this MERS outbreak and what is the latest on how the soft quarantining of hundreds of people is working. You just mentioned and touched on that just then? NOVAK: In terms of the fallout there has been a lot of criticism over the government's handling right from the very beginning. We know that this outbreak began with one man who had travelled to the Middle East and the government admits that not enough was done at the very early stages to make sure that the man was identified as a MERS patient.

[03:25:07] Isolated from other people and treated appropriately before he managed to spread it to other people unknowingly and then after that there was another large cluster of people, who got the disease here in Seoul in a separate hospital in one emergency room.

And a lot of the cases confirmed now can be linked to that particular emergency room so criticism over the slow response over that and also the fact that the government was being accused of not being transparent enough.

For days and weeks in fact people were demanding to see the list of hospitals and clinics that may have been exposed to MERS so that they have all the information and could protect themselves.

And it took almost three weeks into this unfolding outbreak for the government to release that information. And now both the government and the WHO is referring to the need for transparency for people to have the correct information to stop rumors from spreading.

There is a lack of trust on both sides. The government is not trusting people to stay at home if they are being ordered to be quarantined. So as we know they are tracking these people using the GPS on their mobile phones to make sure they isolate themselves in their own homes and stop this from spreading into the public -- Rosemary.

CHURCH: Yes, that is certainly critical. And of course, giving people some great tips, washing your hands, there is nothing more important than that in just trying to stop this spread. Kathy Novak bringing us up to date in Seoul, South Korea. Many thanks to you as always.

BARNETT: Now they are dangerous, desperate and on the run. Coming up next, the details on the history of the two violent killers who escaped from a maximum security prison.

CHURCH: Plus the TSA fails again. Coming up, how the agency in charge of airport security in the U.S. failed to spot dozens of employees on terror watch lists. The details when we come back.

(COMMERCIAL BREAK)

BARNETT: Welcome back, to those of you watching here in the U.S. and all around the world. This is CNN NEWSROOM. Your last half hour of the day. I'm Errol Barnett.

CHURCH: And I'm Rosemary Church. It is time to check the headlines for you this hour.

Fresh off their success in retaking the city of Baiji, Iraqi troops are closing in on Ramadi in Anbar Province. ISIS is threatening a key military base nearby where joint forces are said to be preparing a major counter offensive. The terror group captured the city last month.

BARNETT: Europe's largest bank is streamlining operations and cutting cost by as much as $5 billion over the next two years. HSBC says it intends to sell its Turkish and Brazilian operations and the key here it will cut up to 25,000 jobs.

CHURCH: FIFA says there are no legal grounds to revote the 2018 and 2022 World Cup bids from Russia and Qatar. The statement comes after FIFA's compliance chief says the bids could be voided if there was evidence of bribery. Russia and Qatar have denied all allegations of bribes.

BARNETT: At this hour, hundreds of police officers are conducting a manhunt that could span three nations after a pair of convicted killers escaped from a New York state prison.

CHURCH: The state is offering a $100,000 reward for their capture. They broke out of the maximum security facility by using power tools to cut through steel walls. Officials say it's almost certain the men had help and a source tells U.S. police questioned a female prison worker who knows them well.

BARNETT: Now what is so frightening is that the escapees, Richard Matt and David Sweat, have extremely violent pasts described as psychotic and dangerous.

CHURCH: Yes, and that is making officials anxious to find them quickly. Deborah Feyerick has more on their long and bloody rap sheets.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN NATIONAL CORRESPONDENT (voice-over): Vicious, cunning, extremely violent. That's how a retired detective describes now 49-year-old Richard Matt. Matt was convicted in 2008 of kidnapping his ex-boss, William Pickerson Sr., who owned a food delivery business.

At the trial an accomplice testified the man he called Rick Matt tortured the elderly businessman, tossing him in a car trunk for 27 hours before snapping his neck and it didn't stop there.

Matt then dismembered Pickerson's body, the accomplice testifying, quote, "He cut up the torso and threw the legs in the Niagara River." Before he could stand trial for that murder, he escaped to Mexico where he soon killed another American in a bar.

He was thrown in a Mexican prison and extradited to New York to stand trial for the Pickerson homicide. Years earlier, in upstate New York, Matt had escaped a different prison facility while serving time for burglary.

UNIDENTIFIED MALE: These are really dangerous and desperate men. They are literally killers.

FEYERICK: The second fugitive is 35-year-old David Sweat. He is serving life without parole for the 2002 murder of Broome County Sheriff's Deputy Kevin Tarsia.

FREDERICK AKSHAR, BROOME COUNTY, NEW YORK UNDERSHERIFF: The community knows Deputy Tarsia was gunned down by Mr. Sweat and another individual. So while he was out on patrol.

FEYERICK: Sweat and an accomplice just robbed a gun store when they were confronted by the deputy, shooting him at least 12 times. At the maximum security prison from which the men escaped, Matt and Sweat had adjoining cells. They worked in the prison tailor shop with a female employee now suspected of helping the two men break out. Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

BARNETT: We can report there's been another shocking failure by the agency in charge of U.S. airport security. A new report reveals the TSA did not screen out dozens of airport workers on terror watch lists.

CHURCH: A real concern for those who fly and the report says many of the workers have access to restricted and secure areas. CNN aviation correspondent, Rene Marsh has the details.

(BEGIN VIDEOTAPE)

RENE MARSH, CNN AVIATION AND GOVERNMENT REGULATION CORRESPONDENT (voice-over): Aviation workers with terror connections working at U.S. airports. The TSA in charge of vetting these employees green lighted at least 73 people with links to terrorism.

CHAD WOLF, FORMER TSA OFFICIAL: These are airport workers. This speaks to the issue of the insider threat. TSA's primarily way to guard against that is to make sure that these background checks are complete and they are exhaustive. What this report says is, they're complete nor are they exhaustive.

[03:35:09] MARSH: According to a Department of Homeland Security inspector general report, the slip-up is a potential national security risk even the TSA acknowledges.

Quote, "The individuals were cleared for access to secured airport areas despite representing a potential transportation security threat." They worked for major airlines, where airport vendors and other employees with unescorted access to commercial planes, tarmacs and luggage.

The misstep happened because TSA does not have complete access to every agency's terror watch list.

WOLF: This is a classic example of them not working together as they should, and so who is to blame, TSA and DHS are really at lead here. MARSH: The fear, airport workers with terror links could facilitate an insider attack. In a CNN investigation, Drew Griffin uncovered employees with access to airplanes and tarmacs were not screened daily, although the agency said it ramped up random screening after a baggage handler was caught smuggling guns onto commercial planes in Atlanta.

Scrutiny over TSA's vetting process comes after embarrassing news the agency's officers failed to detect weapons and fake explosives almost every time undercover teams put them to the test.

WOLF: It just points to a larger problem that TSA has in making sure that their operations are running smoothly. It comes from leadership and not having a leader in place for some time now I think has detrimental to the agencies.

MARSH: Rene Marsh, CNN, Washington.

(END VIDEOTAPE)

CHURCH: All right, we'll take a very short break here. Still to come, thousands of migrants are landing on European shores in hopes of finding better lives. Why some locals in Greece are not giving the migrants a warm welcome.

(COMMERCIAL BREAK)

CHURCH: Welcome back, everyone, the U.S. Supreme Court has ruled that Americans born in Jerusalem cannot list Israel as their country of birth in their passport.

BARNETT: The parents of this boy sued the State Department to do that just that soon after he was born in Jerusalem. But because Jerusalem is disputed territory, U.S. passports declare no country and that space is left blank.

CHURCH: For 60 years, U.S. policy has been no state holds sovereignty over Jerusalem. The Supreme Court's majority opinion states that the president has the exclusive power to recognize foreign territories.

Thousands of migrants are making the dangerous journey across the Mediterranean into Europe. Over the weekend, rescuers saved about 6,000 migrants at sea, 1,200 of them arrived in Sicily to be processed and received medical care.

BARNETT: The U.N. says nearly 100,000 migrants have crossed into Europe so far this year. You can see how quickly this crisis is escalating compare that number to last year during the same period and it's jumped by 85 percent.

CHURCH: Another nation thousands of migrants are setting foot in? Greece.

BARNETT: That's right. They arrive happy to have made it alive after a long journey, but some locals don't share those same feelings. Isa Suarez reports from (inaudible). (BEGIN VIDEOTAPE)

ISA SUAREZ, CNN CORRESPONDENT (voice-over): This is Greece's new reality, boat load after boat load of migrants arriving on their idyllic shores. Exhausted, yet relieved they rush to set foot or a more stable land.

Only the remnants of their past is left behind. They turn their backs on their turmoil and follow the Coast Guard who escorts men, women and children through (inaudible) main street.

Here two very distinct worlds collide when tourist come face with the migrants. It's a scene that is repeated daily. While some wander the street, others nap, taking refuge from the harsh afternoon sun in the local park.

I meet a group of Pakistanis and Afghans waiting for their temporary residence permits to be processed.

UNIDENTIFIED MALE: Every day, boom, boom.

SUAREZ: Rahid who does not want to appear on camera is from Kashmir. He made the journey from Pakistan via Iran and Turkey.

UNIDENTIFIED MALE: After I think I have money. After I go to Germany --

SUAREZ: He is one of thousands making the journey. According to UNHCR, more than 8,000 have arrived here so far this year.

(on camera): The town is six kilometers from the Turkish coast. And for the thousands of migrants making their way in these dinghies this is perhaps the fastest way into Europe.

(voice-over): Their arrival has seemingly force tourists (inaudible), but many tell me it's not ruing their holiday.

UNIDENTIFIED MALE: Before we came out, people were saying that people are complaining of the immigrants, but as far as we are concerned, it doesn't affect us whatsoever.

UNIDENTIFIED MALE: What can we do?

UNIDENTIFIED FEMALE: The Greece is poor too.

SUAREZ: Greece needs every tourist it can get. The locals fear that migrants will drive them away.

UNIDENTIFIED MALE: It's a big problem. It's too many. Every week we have a thousand people and they are around everywhere. They don't have some path. They don't have nothing so it's very bad.

SUAREZ: Greeks must now come face to face with this new reality, their charming island now a new frontier for migrants who have left it all behind for their moment in the sun. Isa Suarez, CNN, on the island of (inaudible) in Greece. (END VIDEOTAPE)

CHURCH: And we move to a look at the weather now and of course some rainfall, some really extreme rainfall in Southern China has turned deadly. We have Pedram Javahere. Just incredible levels there.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Yes, it displaced about a quarter of a million people. Nine-story buildings have seen the buildings are beginning to come down because of the tremendous force of the rainfall there.

This is one of the heaviest rain events we've seen in about 40 years. In Southern China, we talk about heavy rainfall, but this amount is unprecedented. And if you look at the numbers the concentration of the reds in Hong Kong, that's where the peak of the rainfall is.

And the video showing you what we are dealing with when it comes to the flooding that is taking place showing you the damage taking place. Again, 250,000 people displaced over this region. We'll show you the graphics as far as the rainfall amounts.

[03:45:10] And 1970s, that's the last time we saw this much rainfall. The footage looks like a national park because of the tremendous force of the rivers, but this is a creek, a stream that reached its full capacity and burst its banks.

And you are looking at the damage that follows suit over this region with cars getting trapped and causing essentially more of a blockage downstream and hugging neighborhoods to be taken by water.

But here is the perspective across Southern China. Again, this is the wettest time of year, but this amount of rainfall is quite remarkable. And the semi-permanent front that sets up across Southeastern China goes all the way out there towards Japan stretches about 5,000 kilometers or 3,000 miles.

You can put this in the United States and it would go from Los Angeles towards New York City. You put this over in Europe. It goes from Lisbon to Moscow. That is how prominent of a feature this system and it really impacts much of Taiwan, the Korean Peninsula as well.

And the forecast brings additional heavy rainfall in the coming couple of days across this region, but we will look at the western United States and leave you with this, some of the hottest temperatures in the U.S. have been happening here.

Thank you for watching us if you're staying up late, Yakima, Washington had the hottest temperature for the month of June, 105 Fahrenheit about 41 Celcius. They have never seen it this hot this early especially into the season, hotter than parts of Death Valley, California in Oregon and Washington in the last couple days.

BARNETT: How bizarre?

CHURCH: What does it say about temperatures ahead? JAVAHERI: This summer is going to be pretty warm. We know a long range outlook for the north western U.S., which is typically the coolest the spot of the United States will be much, much hotter than the normal.

CHURCH: Thanks for that bright news.

Tech giant, Apple is once again stepping into the music business unveiling its new streaming service, Apple Music on Monday.

BARNETT: That's right. I think for roughly $10 a month, customers will have access to 30 million songs in the Apple music library. Dan Simon has more on the announcement and the evolution of online music.

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DAN SIMON, CNN CORRESPONDENT: Just to give you a little bit of context behind this announcement. If you were go back, say, 15 years ago, the music industry was in a huge mess.

You had sites like Napster and everybody under the sun was downloading music illegally. Then came along iTunes, and it was the first digital store front that got widespread acceptance suddenly people were paying for music again.

Well, if you look at the environment today, it's all about streaming. People are going to iTunes and individually downloading tracks like they once were. It's now all these all-you can eat plans that have gotten all the momentum.

So Apple is now joining that race with Apple music and Beats founder turned Apple executive, Jimmy Iovine, explaining the inspiration behind the change.

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JIMMY IOVINE, APPLE EXECUTIVE: I reached out to Tim Cook and I said, guys, can we build a bigger and better ecosystem with the elegance and simplicity that only Apple can do, one complete thought around music?

(END VIDEO CLIP)

SIMON: Apple Music will cost $10 a month, which is competitive with what the other apps are doing, but there is no free tier unlike some of the other apps like Spotify, for instance. There is a family plan that costs $15 a month. It will debut this month on IOS devices and then will also be available for android devices later in the fall. Dan Simon, CNN, San Francisco.

(END VIDEOTAPE)

BARNETT: You hate when you are socializing and people get offended because you didn't speak to them, but you didn't mean to. At the sidelines of the G7, it got awkward when it appeared that U.S. President Barack Obama snubbed the Iraqi prime minister. We'll bring you some reaction from the White House after this. (COMMERCIAL BREAK)

[03:52:41]

BARNETT: Welcome back. The sidelines of the G7 Summit is where world leaders socialize, but somehow, someway, things were a bit awkward on Monday.

CHURCH: Yes, very uncomfortable. President Obama was talking to IMF Director Christine Lagarde and the Italian prime minister, and the Iraqi Prime Minister Haider Al Abadi sat down beside Mr. Obama, but he never turned around.

BARNETT: About 40 seconds passed. The president gets up and walks away never noticing the prime minister standing right behind him. Was this really a snub? Here's what the White House had to say.

(BEGIN VIDEO CLIP)

JEN PSAKI, WHITE HOUSE COMMUNICATIONS DIRECTOR: Fun to look at footage and evaluate and guess what's going on, but I think in this case this is much ado about nothing. Who knows what was going on during that video footage, but I don't think it's any reflection of the president's respect or what he thinks about Prime Minister Abadi's leadership.

(END VIDEO CLIP)

CHURCH: You know, when you look at the pictures, that's what it looks like, that he was so engrossed with his conversation. Let's face it, if someone walks behind you there, you don't see that.

BARNETT: But look that happens sometimes, when you are engaged in a discussion and you are not looking at your peripheral vision. It's not necessarily a snub. This probably happened at parties.

CHURCH: It happens to me all the time. Yes. Just don't notice. Which one am I, Obama or Abadi?

BARNETT: Obama. When the latest winner of the Triple Crown is done racing, he won't just be put out to pasture. He will be put out to stud.

CHURCH: And wait until you hear how frequently this thoroughbred will have to breed. CNN's Jeanne Moos report on American Pharoah's risky future.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): American Pharoah is definitely a lady's man when it comes to human ladies.

UNIDENTIFIED FEMALE: Unbelievably amazing.

UNIDENTIFIED FEMALE: I was so excited.

MOOS: Maybe the horse isn't the one who needs a cold bath, but mares are what will excite the Triple Crown winner.

UNIDENTIFIED MALE: He is a really cool dude.

MOOS: Destined to become a stud, breeding four times a day and making $75,000 to $100,000 each time. His owner told ABC News.

UNIDENTIFIED MALE: So when you retire all you do is eat, play, and have sex, so bad?

UNIDENTIFIED MALE: It could be worse.

UNIDENTIFIED MALE: Sounds exhausting.

[03:55:06] MOOS: Maybe to you, Dan, but president of Winstar Farms says it comes natural to stallions. They enjoy it.

UNIDENTIFIED MALE: Every now and then you may have a horse say I'm tired of this but very rarely.

MOOS (on camera): I have a headache.

(voice-over): American Pharoah's dad, Pioneer of the Nile, lives at Winstar Farm and his stud fee may double thanks to his offspring's Triple Crown success from $60,000 to perhaps $120,000 per session.

Some horses take just a minute or two. Pioneer of the Nile takes his time, 20 minutes to breed a mare.

ELLIOTT WALDEN, PRESIDENT AND CEO, WINSTAR FARM: He doesn't come in and want to get the job done right away and courts his mares, lick on her flank and nicker at her a little bit.

MOOS: Even a Triple Crown winner shouldn't expect privacy around four handlers stand by during breeding wearing helmets.

WALDEN: You can get bopped in the head.

MOOS (on camera): Do they actually wear flak jackets?

WALDEN: They do.

MOOS: And don't expect them to put on any Barry White music. Jeanie Moos, CNN, New York.

(END VIDEOTAPE)

CHURCH: Tough luck?

BARNETT: If reincarnation exists, I'll leave it at that.

CHURCH: Whatever. Be careful what you wish for.

Thanks for watching CNN. I'm Rosemary Church.

BARNETT: And I'm Errol Barnett. Our four hours is up. "EARLY START" is next for those of you in the U.S., for viewers elsewhere, CNN NEWSROOM continues with Andrew Stevens in Hong Kong.

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