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Growing Anger Over Financial Instability; Greece Imposes Capital Controls To Avoid Possible Bank Run; New Yorkers Thank Officers For Capture; Sweat's Mother: "He Always Got In Trouble"; Taiwan Party Organizer Apologizes For Accident; Thirty Eight Killed, Mostly Tourists, In Terror Attack; Global Markets React To Greek Debt Crisis; New York Manhunt Ends After Three Weeks; Turkish Police Break Up Gay Pride Parade. Aired 3-4a ET

Aired June 28, 2015 - 03:00   ET

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

(COMMERCIAL BREAK)

ERROL BARNETT, CNN ANCHOR: Just one day before a critical deadline, Greece closes its banks in hopes of preventing panic.

ZAIN ASHER, CNN ANCHOR: Also ahead, the three-week hunt for a fugitive cop killer ends in the United States.

BARNETT: As hundreds recover from burns suffered during an explosion in Taiwan, we are getting dramatic new video of the moment of the blast.

ASHER: Hello and welcome to our viewers in the United States and around the world. I'm Zain Asher. Glad to be with you.

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

ASHER: It's a story we have been following all weekend. Greece is one day closer to default and authorities there are scrambling to prevent a run on the banks. The banks are closed for at least a week and Greeks are lining up at ATMs today, but they'll be limited to withdrawing about $67 a day in cash, certainly not very much.

BARNETT: No, these are capital controls. They were imposed after the European Central Bank refused to provide more emergency funds. The prime minister tried to reassure the public in this televised address.

(BEGIN VIDEO CLIP)

ALEXIS TSIPRAS, GREEK PRIME MINISTER (through translator): The deposits of citizens in Greek banks are absolutely secured as are the payments of salaries and pensions. Any difficulties which may appear must be dealt with calmly and with resolve. The calmer we deal with difficulties, the sooner we can overcome them and their consequences will be milder.

(END VIDEO CLIP)

ASHER: Those reassurances certainly were falling on deaf ears. Isa Soares is joining me live now from Athens to discuss about this. You know, when I was just listening to Alexis Tsipras there, I couldn't help but think back (inaudible) election.

Alexis Tsipras was so full of so many promises and now the country appears to be close to default. Do the Greek people feel that their prime minister has failed them?

ISA SOARES, CNN CORRESPONDENT: Well, it's kind of a mixed message to be completely honest. If you would ask me about a week ago or so people would have said that Alexis Tsipras has been playing his cards pretty well, pretty tough because it's a democratic mandate saying it's really to push back on austerity, going back to January, that's what he promise the Greek people.

So many people felt that he has done the right thing by saying no to pension cuts, by saying no to rises in VAT so many are proud of that, but given how things have changed in last 24 hours and how dramatic the turn of events here shipping off in Greece, many are in two minds to be completely honest.

Many things that things can get worse and many are already in a state of anxiety and some of them I spoke to yesterday were absolutely furious. I spoke to one gentleman who was buying bread on his way to work and he was saying to me it may be OK for people here in Athens saying where you have ATMs opening in two hours to get cash out.

But people in more remote parts in the village, he was saying, my mother is two hours from an ATM, how is that possible that she is going to travel by taxi, get to an ATM and then probably not even be able to get to a bank because she doesn't have a credit or debit card.

So that gives you a sense of how frustrating it is. Let me give you a sense of the papers this morning too because this is interesting. This paper says when will the banks reopen? And that is the question many people are asking.

We know the Greek government said it will basically be a week or so until next month. That is post referendum, but you know, we'll have to see how long that is because we've seen cases like Cyprus it has taken much longer.

In fact, Cyrus it was almost two years also and this is a government paper. It reads no. It's calling on people to take to the streets tonight, at 7:30 to say no to the proposal by the government for a referendum.

I had an opportunity to speak to some people yesterday to gauge the mood of the referendum. Take a listen to what some had to say to me.

(BEGIN VIDEOTAPE)

SOARES (voice-over): Among antique vases, porcelain statues and paintings of old, tourists bargain for a piece of the Greek past. It's a flea market full of history with tales to match it. This man has been selling his wares here for over 50 years and tells me he never thought it would get to this.

I have never seen a situation like this, he says, not even back in the 1960s when the country had just come out of civil war. We used to have work then. The Greek public doesn't want any more adventures. We are tired. We have suffered too much, he tells me.

[03:05:04] Having encouraged his son to travel to the UAE for work this father is fed up and clearly very emotional.

(on camera): After five months of talks and negotiations, we are no closer to a deal. Are you frustrated, angry or optimistic about the referendum?

(voice-over): He tells me, to be honest, I was very optimistic until this Friday that something good will happen but now I am not. I want to believe that even in the last minute we will have a deal.

(on camera): Speaking to people here there is a growing sense of anger as well as frustration with the E.U. because the Greeks tell me the creditors have been unable to understand what their economic plight is like, what life has been really like for the past five years.

(voice-over): He has never felt so much pressure and with good reason, too. He tells me, this is a family business that provides for seven people. My children are all unemployed. The mood here is very bad. There is no motivation left in us, only discord, misery and no one feels safe.

Despite these feelings of desperation and frustration, he believes that the government of Alexis Tsipras has played its hand well against the creditors. I think the Greek government has handled the situation the right way so far, he says because even if we say yes to the creditors' proposals, it would be as painful as going back to the drachmas.

Regardless of the outcome of Sunday's upcoming referendum, they tell me they will return to their stores once more, perhaps to face a different crisis, one where these old drachmas will be more than just a remnant of the past.

(END VIDEOTAPE)

SOARES: And Zain, you can see the shutters to this national bank, one of the most popular national banks where we are seeing queues lining up overnight. That is closed. We are expecting the shutters to be raised and for people to have access to the ATMs in the next hour or so, midday local.

And also today we're expecting the government to announce what banks may reopen. We are hearing words that some banks may be reopen because today is pension day. Today the pensioners will go to the banks to get their pensions.

We are expecting to hear that because many of them don't have debit cards and won't have access to funds, but for many people here waking up really to a very harsh reality -- Zain.

ASHER: I cannot imagine what those people there in Greece are going through financially, but you know, in terms of capital controls, this is why you're going to have a devastating impact on the Greek economy because it will mean less spending and less investment. Isa Soares live for us there in Athens. Isa, thank you so much.

BARNETT: Now for more perspective on this crisis, we are joined by Michael Jacobides. He holds the Sir Donald Board and Chair for entrepreneurship and innovation at the London Business School.

As you see, he joins us now live from London. Thanks for your time today, Michael. So you know, we just saw our correspondent there in what is sure to be a scary morning in Athens. Some of our viewers may be waking up to these new developments.

So first, how surprised were you to see Greece walk out of talks on Friday, announce a referendum for July 5th and now in the meantime, close all local banks?

MICHAEL JACOBIDES, LONDON BUSINESS SCHOOL: I don't think we really expected there would be talk of a referendum. If you think about it rationally, it doesn't make sense at all. If they wanted to have a referendum, which in principle could be a good idea they should have had it this past Sunday. Why?

Because the program was still on, because the banks were still working and because there was no uncertainty, what we don't know is when the time the referendum happens, the question will still be on the table.

Because we don't know whether the offer exists, Greece may well have defaulted vis-a-vis the IMF and the Europeans have said that the deal exists until Tuesday. So was this a calculated move or even a sensible move? Absolutely not.

What's worse, there were indications that even members of the negotiating team of the Greek government had pretty much converged and what has leaked, which is quite embarrassing for the Greek government is that what was presented as an ultimatum by the Greek government was not an ultimatum.

And the head of the commission actually sent the text that was better than the one that was being discussed because the negotiations were still going on. Why did it happen? Party politics, purely entirely party politics.

The prime minister thought that he couldn't get it through the parliament and he decided to have a rabbit out of the hat, but it is something that may jeopardize things.

BARNETT: I want to delve into that a bit more though, Michael, because you have said here that the main issue is the manner in which the Greek government has approached this crisis focusing much more on party politics and short term survival rather than what is truly best for the country financially long term, right? [03:10:06] JACOBIDES: Absolutely. And I think you can see that in a number of different ways and the process of negotiation has created a lot of enemies of Greece. I mean, you know, simple things like showing up half an hour late in the crucial Euro group where things are being discussed, small details that show that there is a combination of ignorance and arrogance.

Remember, we have a government of activists, people who have not had government experience and I think that if you look at what's going on, this is both what has caused the problems and what may be the greatest cause of concern even if they wanted to get out of the euro, there should have been a plan "b," a preparation for what will follow.

As we can see plainly today, that was not in place. The biggest concern is what will follow if things do not manage to stick together and what's going to be interesting is the result of the referendum.

If the Greek population ends up voting yes and someone suggests that there may be more yes votes than no votes, then obviously the government will have to change in some shape or form.

And the entire structure right now, the way these negotiations happen, but also the outcome suggests that we are going to have a very dramatic week.

BARNETT: Certainly. And the Grexit may be the next major event. Michael Jacobides there joining us with the London Business School, joining us from London with the quote, "I will remember about the referendum, if you think about it rationally, it makes no sense at all." We appreciate your insight today. Thanks very much.

ASHER: Markets in Asia have been reacting to the events, the volatility beyond certainty in Greece. Let me show you this right now. The markets in the region are down across the board, most of them, by the way down more than 2 percent. That includes Shanghai Composite, the Nikkei and the Hang Seng as well. We are going to be taking a closer look at market reaction in Asia and in Europe in the next 30 minutes.

BARNETT: All right, but first this, after more than three weeks and hundreds of law enforcement officers scouring New York State, a massive manhunt is finally over. Cop killer, David Sweat is in critical condition at a New York hospital this hour after being he was taken down Sunday near the Canadian border by a lone sergeant on foot patrol.

ASHER: The officer shot him twice in the torso putting an end to what can only be described as a nightmarish three weeks. Jean Casarez has more.

JEAN CASAREZ, CNN CORRESPONDENT: After 22 days on the run and 1,300 law enforcement officers combing every part of the small towns and remote areas here in upstate New York, it all led to one New York State police officer, Sergeant Jay Cook, who was walking and patrolling himself after 3:00 Sunday afternoon in Constable, New York.

He saw someone he believed resembled David Sweat. He approached him, encountered him, engaged him and that's when Sweat began to run and Sergeant Cook then took out his weapon shooting him two times in the torso.

As we were going to Constable hearing that something was happening, we suddenly see a convoy of New York State Police vehicles as well as two ambulances speeding along the highway with their sirens silent but their lights on.

We followed them and they came right here to the local medical center in Malone, New York. David Sweat was treated here for several hours. He now is in Albany Medical Center. Back to you.

ASHER: New York Governor Andrew Cuomo says David Sweat's capture ends a hellish three weeks and residents near the prison where the escaped happened, they do seem to agree. They cheered and thanked police officers who searched for Sweat and his fellow escapee, Richard Matt.

CNN actually caught up with Michael Doyle who lives across the street from where David Sweat was captured.

(BEGIN VIDEO CLIP)

MICHAEL DOYLE, LIVES ACROSS FROM CAPTURE SITE: My wife says something is going on up the street and I heard the shots and ran out with my phone and started taking pictures and all of a sudden, the cops just swarmed like bees.

UNIDENTIFIED MALE: How stunning is it that this all ended right across the street?

DOYLE: It was very nerve wracking. I was outside doing yard work and it's the same time he was in the hedge row next door to my house.

(END VIDEO CLIP)

BARNETT: Now what's interesting is that we are hearing from David Sweat's mother. She has said her son always got into trouble and should have stayed behind bars. Pamela Sweat also told a local TV reporter that she cried when her son was captured because she was happy he was still alive. Listen.

(BEGIN VIDEO CLIP)

PAMELA SWEAT, DAVID SWEAT'S MOTHER: It is just a sigh of relief. We started crying because he wasn't killed.

UNIDENTIFIED FEMALE: Were you ever afraid that he was going to try to come down to this area while he was on the run?

SWEAT: No. My son knows that if he would came here, I would have knocked him out and had them take him to jail.

[03:15:06] UNIDENTIFIED FEMALE: Have you been watching the media coverage? Have you been watching the news outlets?

SWEAT: No, I don't want to. I just want to know what is the matter with my son.

(END VIDEO CLIP)

BARNETT: And you can imagine how difficult this has been for her. Sweat's mother also said the guards stationed at her home didn't tell her he had been caught, but just got up and left.

ASHER: Yes, and she also mentioned that her son had been actually exhibiting violent behavior since he was 9 years old, since he was just a child, just incredible.

OK, we turn now to another story we've been following out of Taiwan. We have dramatic new video to show you that captures the moments just before a fire happened at a water park in Taipei.

Now the video shows party goers dancing just before a flammable powder suddenly ignited, erupting in fire. State media are reporting that 498 people were injured in the explosion.

BARNETT: There are no deaths to report, but there more than 200 victims in critical condition. So far at least five people are being questioned in connection with the blast. Kathy Novak reports.

(BEGIN VIDEOTAPE)

KATHY NOVAK, CNN CORRESPONDENT: I'm at the water park where young people were dancing and having a great time at the even called the color play party. Then it all went terrifyingly wrong. I have to warn you that the video we are about to show you is extremely graphic.

Many will find it disturbing because it shows the moment that a dance floor full of people was engulfed in flames. As you can see a giant fireball exploded in the air and suddenly people were screaming and running for their lives.

Authorities here believed that the colorful powder that's part of the whole theme of this even is responsible. Taiwan's premiere has banned its use until further notice and this water park has been shut down while investigations continue.

The event organizer has been brought in for questioning and family and friends of the victims have been asked to come here and pick up their belongings. We spoke to one of them. He was here when the explosion happened.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): The music started and the host wanted to give us a surprise and used all the powder that was left. Maybe because the lights were too hot, there was a sudden explosion. The fire came too fast and nobody was able to run. Everybody was burned or jumping up and down or running and some were stampeded. Nobody could save others and people suffered severe burns. (END VIDEO CLIP)

NOVAK: Now he suffered minor burns to his foot, but he tells us his girlfriend is much worse off. So many like her were given first aid right here at the water park, some were dragged out on inflatable tubes and then they were rushed to 39 hospitals in the area.

We're told that specialized burn units are overwhelmed and there aren't enough beds for everyone who needs that care. Hospitals are appealing to the public to stay away unless absolutely necessary so that they can focus on caring for all of those people who were injured right here. Kathy Novak, CNN, Taipei.

(END VIDEOTAPE)

BARNETT: We should note that a party organizer and lighting technician are considered suspects in the blast. They are both free on bail and barred from leaving the country.

ASHER: During the press conference, the organizer dropped to his knees to apologize and say he was sorry for Saturday's devastating accident.

BARNETT: Hundreds of tourists are fleeing Tunisia after a deadly attack there, but some have decided to stay. Hear their reasons, next.

ASHER: Plus gay pride marchers and police in Turkey clash during a demonstration.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: They may have won a very significant victory in the United States, but in so many other countries there is still such a battle ahead of them.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[03:22:51]

ASHER: Welcome back, everyone. Tunisia is stepping up its security in tourist zones following Friday's deadly terror attack. At least 38 people, most of them tourists, were killed when a gunman opened fire at a beach resort in Sousse.

BARNETT: Now the beach where the attack took place was reopened on Sunday. Fifteen of the victims have been identified as British citizens and that number could double, in fact, according to Britain's Press Association.

For the latest developments, let's bring in our Phil Black. He joins us live from Sousse and Phil, talk to us about the British response to all of this because as we just noted, most of the victims were visiting from the U.K., and I guess, as a result of that, large number of investigators from the U.K. have been deployed.

PHIL BLACK, CNN CORRESPONDENT: Yes, that's right. There are 16 in all deployed, but supported by hundreds working on this attack back in the U.K. Those hundreds are partly dedicated to the investigation, working out precisely how it happened, who is involved, who supported it, where did this attack come from in origin.

But many of those are also involved in supporting the British victims of this, those who were there, their families back home and other people who have cut short their holidays to return to the United Kingdom.

That's why the U.K. police say this is such an extraordinarily large operation for them. That's because of the warning that's come from the British government that as many as 30 of those victims could be confirmed to be U.K. citizens.

They are talking in approximate terms still because they haven't locked that down. They haven't confirmed it. They are saying the process of officially confirming the identities of the victims is taking a bit longer than normal, partly because of the location. It's remote, but also this is a resort area.

This is where those victims were lying on the beach and the swimming pool. They weren't carrying identification at the time, obviously. So it's just a longer, slower process. But I think the British government is clearly getting the British people ready for a terrible outcome.

Confirming ultimately that the end result will be something around 30 British citizens killed in this attack. On top of the Irish, the Belgian and German citizens that have already been confirmed so far.

[03:25:07] BARNETT: All right, Phil Black live for us in Sousse. We are just looking at the footage there of some of the local security response as armed men do, you know, make that beach area secure. Phil Black live for us this morning, thanks very much.

ASHER: And understandably as we mentioned, hundreds of tourists have been fleeing Sousse since the attack, but in a show of defiance some tourists say they are not going home early. Senior international correspondent, Nick Paton Walsh, has more.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): They will not be moved, a defiant stance poolside mingling with chlorine, sun cream and beer where 46 hours earlier their fellow guests were gunned down.

German and British tourists finishing their holiday, their music even, it's British stiff upper lip spirit, a bid not to let them win. Nathan from Norwich said Tunisian jobs depend on tourists not fleeing. NATHAN, TOURIST FROM NORWICH, ENGLAND: It's all very chilling and it's just not the same as what it was, but I think that what we're going to do is just stay here until our holiday finishes and then leave. And you know, we don't want to venture too far outside of the resort because we are still so unsure of what's going to happen. But yes, I think we're in the safest place at the moment.

WALSH: Inside the marble and calm is as though a nightmare never befell here. Yet this video shows the aftermath of the bloodshed at the indoor pool. Consular staff from the U.K. here yet the gunman scarred more than the building.

(on camera): It is extraordinary and a sign of the resilient spirit of what seems to be German and British tourists here we are told that they decide to continue their holiday despite being meters away from dozens died and lying in the sun in areas still riddled with bullet marks.

(voice-over): These two wash the sand from the beach off and wander back towards the bullet holes.

(on camera): How many guests?

UNIDENTIFIED FEMALE: Forty, 50.

WALSH: All German?

UNIDENTIFIED FEMALE: Twenty.

WALSH: And the rest?

UNIDENTIFIED FEMALE: British.

WALSH: And they will never leave or they're staying?

UNIDENTIFIED FEMALE: They're staying.

WALSH (voice-over): Many were on a tour when the attack happened, but Folker Schumacher was in the sea.

FOLKER SCHUMACHER, TOURIST FROM GERMANY: Suddenly it is explosions and we saw smoke, smoke. And I look, yes -- and say to my wife, hurry up, hurry up, and we are sent running, running in this direction and I have -- and in the sand, yes.

WALSH: The inspector still goes to the beach where he saw many die.

UNIDENTIFIED MALE: Here, a woman, and -- Red Cross, here and -- there it was here -- a dead person, young lady.

WALSH: Where he killed many on the beach is a crime scene open to the public, a memorial but also still a place in the sun for some. Nick Paton Walsh, Sousse, Tunisia.

(END VIDEOTAPE) BARNETT: Investors across the world are on edge right now as the Greek economy teeters. How European and Asian markets are reacting to the news of the debt crisis.

ASHER: First, the sheriff who worked with the deputy that David Sweat murdered in 2002 reacts to the convict's capture. We'll be back right after this.

(COMMERCIAL BREAK)

[03:32:29]

BARNETT: Thanks for staying with us. You're watching CNN NEWSROOM. I'm Errol Barnett.

ASHER: And I'm Zain Asher. Let's give you your headlines at this hour. The three-week manhunt for an escaped killer in New York is finally over. A state police sergeant spotted David Sweat near the Canadian border on Sunday and shot him twice. He is now in hospital in critical condition. Police shot and killed fellow escapee, Richard Matt, on Friday.

BARNETT: The number of British citizens killed in Tunisian terror attack could double to 30. That's according to Britain's press association. It says many of the victims still haven't been identified. At least 38 people mostly tourists died when a gunman opened fire at a beach resort in Sousse on Friday.

ASHER: Greek authorities are imposing measures to try to prevent a run on banks as the country approaches default. The banks are closed for at least one week. Account holders are limited to about $67 in cash withdrawals per day at ATMs. Greece has a Tuesday deadline to make a loan payment to the IMF.

BARNETT: We'll talk more about this now because global markets already are reacting to developments there in Greece. Ivan Watson joins us in just a moment from Hong Kong where markets have been down throughout the day.

ASHER: But I want to start with Nina Dos Santos in London where Europe's trading is just getting started. So Nina, we know that Greece owes about 1.6 billion euros to the IMF. They are supposed to make that payment on Tuesday and it's increasing likely that they might default on this. So what sort of impact will the capital controls and the potential default have on European markets?

NINA DOS SANTOS, CNN CORRESPONDENT: Well, you can already see from the pictures 34 minutes into the trading session so far, Zain, that European markets are being hammered on the back of this news.

In fact, a number of these stock markets opened down to the tune of about 4.5 percent, but they are starting to settle back up a little bit. Let's have a look at how some of the main Eurozone markets are doing.

We talk about markets like the CAC and also the DAX, these are two the big markets in the single currency areas. You can down around about 4 percent, but they were incurring harder losses around about 20 minutes ago.

In fact, they were called to open down double this amount in the futures markets before these markets starts the trading. Want to point out that the Athens composite does look interestingly enough as though it is up on this chart, but it is actually shut at the moment for that bank holiday that has been imposed now.

We know that there is going to be a week-long bank holiday for those banks to be shut. The Athens composite according to certain reports is likely to be shut throughout the course of this week as a result of that.

[03:35:05] So this is Friday's trading session and it just goes to show you how optimistic everybody was in the markets that we would see a deal on Friday. If we can just open up the one-month chart.

I want to show you how choppy it has been over the course of the last few months or so, and this is just June alone. As you can see those are low point in the talks in the middle of the month and the optimism rose.

And the flat line is when these markets have been shut. It will stay flat as they remain shut and a lot of people expecting it to crumble when it does get trading -- Zain.

ASHER: The last thing anyone wants is any type of contagion. We'll see what sort of impact Tuesday has on the European markets as well. We'll wait to see what happens in two days from now. Nina Dos Santos live for us there in London. We appreciate that report.

BARNETT: And let's go ahead and bring in Ivan Watson, who is in Beijing. Ivan, I want to ask you about China's stock market because we have seen a number of corrections there these past few weeks. It also has a different type of structure, but if you look for this global reaction to what is happening in Greece how much of what we're seeing in Beijing and elsewhere is connected to the fluctuations in Greece?

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Certainly the other Asian markets were all hit. They -- for the most part all lost 1 percent to 2 percent digit points throughout trading in the day. The Chinese markets are very different because due to capital controls and trade restrictions, foreigners are not allowed to easily invest in China's stock markets and vice versa.

Chinese investors are not very exposed on international markets. But what has been happening in China for two weeks is its own basically free fall. The Chinese Shanghai Composite has lost some 19 percent of its value over the course of the last two weeks.

That's more than $2 trillion in market capital that has all been erased now in two weeks. Now let's put it in context, though. The Shanghai Composite rose spectacularly over the last year and even with the losses that we've seen over the last two weeks that continued again today on slightly smaller margin of loss.

Even with the losses of today, you still have the Shanghai Composite up 25 percent to compare to where it was exactly a year ago. So if an investor got in there early on, they still have potentially made an awful lot of money.

It's the people, financial analysts say, that got in in the last couple of months, people who borrowed money to purchase stocks, they are potentially feeling a lot of pain right now and we have been talking to some of these ordinary investors.

These are for the most part described as mom and pop investors. They are not big banks and institutions. They are ordinary people who saw the chance to make a buck or an RMB on the ground here.

Some of them are the ones who are losing. One Chinese woman telling us today, I feel terrible. I've lost so much money. Another woman who managed a furniture shop telling that us she had come into a trading shop just to dump her stocks right now.

So we are anticipating more volatility in these Chinese markets. This is coming at a time where China's economy as a whole is slowing down to slower levels of growth than it's seen in decades -- Errol.

BARNETT: So you have some local issues playing into the markets there and the fear is what happens in Greece will only exacerbate the situation. Thanks to Ivan Watson in Beijing and Nina Dos Santos joining us from London.

ASHER: The story out of Greece certainly has a lot of moving parts and indeed it is moving very quickly. We have a lot of resources to help you better understand the financial situation there on our web site, just head to money.CNN.com.

BARNETT: Now the other breaking story we are following for you is the capture of cop killer, David Sweat, in New York after more than three weeks on the run.

ASHER: That's right. A state police sergeant spotted David Sweat on Sunday, very close, dangerously close to the Canadian border and shot him twice. Sweat is now fighting for his life in hospital. Polo Sandoval has more.

(BEGIN VIDEOTAPE)

POLO SANDOVAL, CNN CORRESPONDENT: This is as close as we can take you to the very spot where David Sweat was arrested by New York state police. Down this road was the actual location there. About a mile, the police are still treating this as a crime scene.

Even the residents here in Constable, New York being told to turn around and head in the other direction and then you look over my right shoulder. This is part of the tree line where Police Sergeant Jay Cook was afraid that Sweat would eventually run into, hide and further prolonging the search that went on over three weeks.

[03:40:02] So what we are seeing here is a sense of relief among the community. So many people decided to pack up, lock up, and head elsewhere where the search got too close to their doorstep.

We are also hearing from Broom County sheriff, David Erbert, who actually employed Sheriff's Deputy Kevin Tarcia, back in 2002 when he was brutally shot and killed by David Sweat.

I spoke to him. The sheriff saying that today's events providing a sense of relief not only for the law enforcement family, but also his loved ones as well.

This weekend will mark the anniversary when he was shot and killed by David Sweat on that 4th of July day and so not only are we getting a reaction from people here in upstate New York, but also in other parts of the state as those two shots ending so much uncertainty and fear for the residents here in upstate New York. Polo Sandoval, CNN, Constable, New York.

(END VIDEOTAPE)

BARNETT: Our CNN law enforcement analyst, Tom Fuentes, joins us now from D.C. to talk about this. Tom, just how stunning is it that David Sweat and Richard Matt, before he was shot on Friday, were able to elude authorities for weeks and at least be as free as they were for this amount of time?

TOM FUENTES, CNN LAW ENFORCEMENT ANALYST: I think it is pretty amazing that they were on the run for three weeks. Although when you see the pictures of that forest and just how deep the coverage was this time of year, you know, late spring, early summer in the U.S., it's not hard to believe.

For people who are outdoorsman, they know that you can be three or four feet from somebody in deep woods like that and not notice. And of course, the irony is that the prisoners in that jail are allowed to wear civilian clothes including dark forest green shirts and pants that blend in in the woods.

BARNETT: We are in fact looking at images here of David Sweat the moment he was captured and the back story to that is he was spotted by a lone officer, who saw a man jogging and began questioning him before he realized who he was. What was likely the priority for that officer at that time when he knew this was David Sweat, to capture him alive or to stop him from reaching the border, which is only a few miles away?

FUENTES: I think even more than stopping the boarder would be stopping him from getting back in the woods. As Sweat was running and heading for the tree line, that officer knew if he made it to the tree line they could spend three more weeks look for him again in the woods or invade someone's home or cabin once he got back in the woods and continue the threat to the general public that he posed.

BARNETT: What now for David Sweat? Might he be offered some kind of deal or leniency if he cooperates and, you know, admits and discusses who helped them both escape or is there only one future for him?

FUENTES: No. There's another future for him and that is that he can be a rock star out of all this. And that's what usually happens. Personalities like Sweat and Matt are very narcissistic. Yes, they are psychopaths and vicious murderers, but that is part of their narcissism.

It's all about me and they only care about themselves. He may be ready to be the star of his own movie here to say how they did it. I think a skilled pair of interrogators or interviewers should be able to get that out of him.

I know people say he'll never talk and all. I don't believe it. I worked organized crime all of my career in the FBI 30 years and they say they won't talk, but often they can't wait to share their story of how great they are.

BARNETT: Our CNN law enforcement analyst, Tom Fuentes, thanks for your insight from D.C.

FUENTES: You're welcome.

ASHER: Still to come on CNN NEWSROOM, Turkey's annual gay pride parade ends with clashes between marchers and police. Details coming up.

BARNETT: Plus a mission to the space station ends with a fiery explosion for the Spacex rocket. Details on this, next.

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BARNETT: We have some breaking news to report out of Taiwan, the first death in Saturday's water park explosion has now been reported. A 20-year-old woman died on Monday from injuries sustained in the explosion that took place when colored powder ignited over a crowd. The hospital is reporting that the young woman suffered burns over 90 percent of her body. Now there are some 200 people in critical condition right now. We will have more details as they become available.

ASHER: Gay rights supporters around the world have flooded streets for pride parades following the U.S. Supreme Court's historic ruling that legalizes same-sex marriage.

BARNETT: That's right. But in Turkey, look at this, police broke up a parade in Istanbul. And in this extraordinary video you can see as a man gets wiped off his feet as police sprayed the entire crowd with water cannon. The reason, this is the Muslim holy month of Ramadan. You see the man right here just getting completely pushed over on his feet. Arwa Damon was there.

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ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): No one expected it to be this way.

(on camera): It's unclear why this year the riot police are pushing people back. Police are going to gas.

(voice-over): Riot police not just firing water cannons, but also rubber pellets, tear gas and pepper spray.

UNIDENTIFIED FEMALE: It's not a crime. We are not a crime. Come on. Why you doing this?

UNIDENTIFIED MALE: Shut up. Shut up. Shut up! This is Turkish problem. I don't like --

DAMON (on camera): And that is clearly one of the key issues that the LGBT community and activists are still facing. They may have won a very significant victory in the United States, but in so many other countries there is so still such a battle ahead of them.

UNIDENTIFIED MALE: We are at the stage of please don't kill us. You know, we don't discuss equal marriage or employment rights or whatever. We are just demanding our basic human rights.

DAMON (voice-over): Many believe this is a political reaction and not just about the LGBT community. The president's party did not fare as well as expected in this month's parliamentary elections.

UNIDENTIFIED FEMALE: This shows how scared they are of people who think differently.

[03:50:06] They want a controlled society and things their way. This is absolutely despicable.

DAMON (on camera): There is more tear gas in the air. LBGT organizers are saying that the governorship told them they did not have permission to hold this march this year because is it the holy month of Ramadan.

But this is the first time that such an occurrence has taken place during gay pride in Turkey that has been celebrated for well over a decade now. The last few years have gone off without any sort of problems whatsoever. And everyone in the crowd here is absolutely shocked at the way they're being treated.

(voice-over): This is a society that has grown used to the authority's heavy hand. But for the LBGT community and those who continue to celebrate gay pride in the side streets, they say that this is only going to make them stronger. Arwa Damon, CNN, Istanbul.

(END VIDEOTAPE)

ASHER: Certainly a very different reaction from what you might you see from gay pride events in the United States.

But coming up next on CNN NEWSROOM, Spacex launches an investigation after one of its rockets bursts into flames, the details straight ahead.

(COMMERCIAL BREAK) ASHER: Spacex is looking into what may have gone wrong after its latest mission to the International Space Station ended with an explosion. The rocket blew up minutes after launch. It was carrying more than 2 tons of supplies including food and equipment for the space station crew.

BARNETT: Now the failed mission won't put them in danger, though. They still have several months' worth of supplies. Spacex founder, Elon Musk said a liquid oxygen tank on the rocket had too much pressure.

ASHER: The "Solar Impulse 2" is now on the most risky and difficult stretch of its attempted flight around the world across the Pacific Ocean. It took off from Japan on Sunday and if all goes as planned it will arrive in Hawaii on Thursday or on Friday.

BARNETT: It's a very ambitious trip. The aircraft is trying to go around the globe without any fuel powered only by the sun. It switches to battery power at night and this is the team's third attempt to make the Pacific crossing, the longest leg of the journey. You can watch a live stream of the plane's cockpit at this moment at solarimpulse.com. It's flying over the Pacific.

ASHER: That's all we have time for, guys. You're watching CNN NEWSROOM. I'm Zain Asher.

BARNETT: And I'm Errol Barnett. Stay with CNN. "EARLY START" is next for those viewers in the states.

ASHER: And for the rest of our international viewers, another edition of CNN NEWSROOM begins right after this break.

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