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Greek Economy On The Edge Of Default; New York Manhunt Over; New Video On The Taiwan Explosion; 38 Dead in Tunisia Shooting; U.S. and Iran Nuclear Deal Deadline; Temperatures To Rise In Europe; David Sweat Captured Near The Canadian Border; ISIS Terror Attack In Kuwait Mosque; Police Stops An Annual Gay Parade In Turkey. Aired Midnight-1a ET

Aired June 29, 2015 - 00:00   ET

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


(COMMERCIAL BREAK)

[00:02:03]

LYNDA KINKADE, ANCHOR CNN NEWSROOM: The Greek economy in huer panic mode as the country titters on the edge of default.

Also, the New York manhunt now officially over. The second fugitive has been shot and is in custody.

A new video just steamed to CNN from the Water Park explosion in Taiwan, the injured nearly 500 people.

Thanks for joining us. I'm Lynda Kinkade and this is CNN Newsroom.

But we begin in Greece where the debt crisis is deepening and the authorities are acting quickly to avoid a run on the banks. Banks to close and won't reopen until Monday, July 6. Account holders will be limited on how much money they can withdraw from ATMs. And the stock exchange reported they will also be closed for that week.

Tourists will still have access to cash. They aren't subject to the so called capital controls. Richard Quest spoke with Jonathan Mann about what triggered this latest move.

(BEGIN VIDEO CLIP)

RICHARD QUEST, CNN INTERNATIONAL BUSINESS CORRESPONDENT: The ECB, Jonathan, basically said they would provide no further money to Greece. No more emergency cash would be given to the Greek banking system. They have provided 89 billion euros so far. They -- each week, the bank was having to decide was it going to give more, was it going to keep the system open.

Today, they decided no. They will going to keep the filling at 89 billion. When that's all gone which eventually have, there will be, Jonathan, no more. Greek banks simply will not have cash.

(END VIDEO CLIP)

KINKADE: The Greek government decided to pull its negotiators out of bailout talks on Friday. But the loan payments of the international monitory fund due on Tuesday, it's all but certain that Greece will default.

And in reaction, Asian stocks were the first to take a hit on Monday morning. Let's take a look at how the markets are doing at this hour. Then Nikkei is down just over 2 percent, the Shanghai down 2.4 percent. The ASX is down 2.06 percent. And Hang Seng down at 2.38 percent.

Now, we're covering this from all angles. Ivan Watson is in Beijing with the reaction from the Asian Markets. And John Defterios has perspective from Abu Dhabi.

First, Isa Soares is in Athens where she spoke with business owners who have little faith left in the country's financial system

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Among antique balances, porcelains, statues and painting of old tourists bargain for piece of the Greek past. It's a flee market full of history with tiles to match it. Janus (ph) has been selling his wares here for over 50 years and tells me he never taught it would get to this.

UNIDENTIFIED MALE: (Speaking in Foreign Language).

SOARES: "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."

[00:05:03] "We used to have work then the Greek public doesn't want anymore adventures. We are tired. We have suffered too much," he tells me.

Having encouraged his on to travel to the UAE for work, this father fed up and clearly very emotional.

After 5 months of talks and negotiations we're no closer to a deal, are you frustrated, are you angry, or are you optimistic about this referendum?

UNIDENTIFIED MALE: (Speaking in Foreign Language)

SOARES: 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 the last minute, we will have a deal."

Speaking to people here, there is a growing sense of anger, as well as frustration with E.U. because the Greek is telling me the creditors are have been unable to understand what the economic plight is like, what life has been really like for the past 5 years.

Ioannis (ph) has never felt so much pressure and with good reason too.

UNIDENTIFIED MALE: (Speaking in Foreign Language)

SOARES: He tells me, "This is a family business. I provide for seven people. My children are all unemployed. The mood here is very bad. There is no motivation left in us, only this cold misery and no one feels safe."

Despite this feeling of desperation and frustration, Ioannis believes that government of Alexis Tsipras has played its hand well against the creditors.

UNIDENTIFIED MALE: (Speaking in Foreign Language)

SOARES: "I think the Greek government has handled situation the right way so far," he says," because even if we say yes to creditors proposals, you'll be just as painful as going back to the drachmas."

Regardless of the outcome of Sunday's upcoming referendum, both Janus and Ioannis tell me they will return to distals once more, perhaps to face a different crisis -- one with this old drachmas will be more than just a remnant of the past.

Isa Soares, CNN, Athens, Greece.

KINKADE: Greece's debt burden is enormous. The figures for 2015 loan is staggering. Since January, it has paid more than $17 billion to its lenders. That is not even half of what it's scheduled to pay for the year. Upcoming payments through the December add up to another $20 billion, and the country owes a total of $366 billion to the so- called troika -- the Eurozone, the European Central Bank, and the International Monitory Fund.

CNN's Emerging Markets Editor, John Defterios, join us now from Abu Dhabi with more.

John, this is unprecedented for Greece. The Greek prime minister is calling for calm. How will this play-out tomorrow?

JOHN DEFTERIOS, CNN EMERGING MARKET EDITOR: Well, there's things to watch here -- two key reactions to watch, and the firs is unfolding in Asia. Candidly, a correction of 2 percent to 2.5 percent of the stock markets is bad but it's not catastrophic. We've seen the same sort of correction with regards to the euro against the basket of currencies. Again, it is a selloff but it's not a run on the euro as we can see it today.

More importantly is to watch to reaction on the ground in Greece. And Isa's report touches upon that but after successive bailouts, Lynda, going back to 2010, we've seen different reactions at times during the elections, for example. We saw protest. We saw strikes at the poor, strikes at the airports which would hurt of course the tourism sector.

In fact, the Alexis Tsipras in his addressed to the nation last night was calling for a calm but he, at the same time, suggested that E.U. officials were using in his word, "blackmail" yet again. But he said the reaction about the Greek people to remain calm is important. Let's take a listen.

(BEGIN VIDEO CLIP)

ALEXIS TSIPRAS, GREECE PRIME MINISTER: (Speaking In Foreign Language) The deposits of citizens in Greek banks are absolutely secured. As to our 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)

DEFTERIOS: This is a government, Lynda, that was absolutely against capital controls including the finance minister who's tweeting yesterday that it goes against the spirit of the monitory union which in which we have19 members, these are severe capital controls limiting Greek citizens to 60 euros a day. That is a very, very constrictive compare to what Cyprus did back in 2013 with the cooperation of the European Union on that bailout.

By the way, the capital controls here lasted for 2 years right now. At least, we know that the stock market electronically be closed for a week and these capital controls will remain in place. Banks close until after that referendum on July 5th. And then after that, it's anyone's guess at this stage.

KINKADE: And John, with people unable to access the money they need, spending will down. The economy there is already weak. How bad could it get?

DEFTERIOS: Well, this is a country that's gone through what I say is not a recession but actually a depression.

[00:10:03] You had to go back to the 1930s to see something of this scale. We've lost a quarter of their economy in the last year six years alone. It's a $100 billion of GDP and to stricken home to some of the vendors and so to speak until there. Per capita income has dropped $10,000 a family. It is unprecedented than we've seen a contraction on the first quarter of just 0.2 percent. That's nothing compared to what we're likely to see in the second half of the year.

The businessman have been talking to over the last week and suggesting we could see a contraction of another 4 percent to 5 percent. What does that mean? We have unemployment of 26 percent much more than the countries of the Arab Spring that has suffered over the last four years and it's not likely to turn any better. And the other thing is forgotten in this debate, Lynda, which I think is very important, you talked about the level of debt, $366 billion dollars in the bailout package, 177 percent of GDP.

Even if the Greek stay in Euro, it doesn't solve that problem. It is a failure of the Eurozone after a very short life of 15 years -- 13 years for the Greeks to potentially leave the Euro after such a short period of time. The structure wasn't right from the very beginning and the Greeks are paying a very severe price today with a lot of uncertainty in other countries as well.

KINKADE: Tough times. Certainly, we will continue. John Defterios, thank you very much for joining us. And CNN international correspondent, Ivan Watson, is live in Beijing. He joins us now with more on how the Greek crisis is affecting the market since trading opens in Asia. And clearly, it's already entering negative territory.

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: That's right. All the markets and major markets in Asia are down in the first half day of trading, 1 percent to 2 percent and perhaps the one that's suffering the most right now -- the Hong Kong market.

And I've been talking to analysts to see whether they think that Asian inventors are worried right now or they fear that there could a treat of contagion that this could spread much further than Greece. Here's what an analyst from HSBC had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That's always a risk. We already see currencies in Asia coming under pressure on the back of the announcements that we had in Greece over the weekend and as the week progresses and we get closer to potential default by Greece, for example, investors will reevaluate the positions in emerging markets including in Asia. So, some economists in Asia are more vulnerable than others but it is clear that this will be a very volatile week for global financial markets.

(END VIDEO CLIP)

WATSON: And nobody really likes volatility. Did not -- it's not a way to really make money and value and that's something that I think everybody is waking up to this week. Lynda.

KINKADE: And no doubt. And of course stock markets in China were already plunging over the last two weeks. Could we see that accelerate if Greece defaults?

WATSON: Well, that's an important question. China stock markets have really been going through a major selloffs over the course of the last two weeks. They've lost more than $1 trillion worth of market capital in just the last two weeks.

But the interesting thing, the unusual thing about the Chinese stock markets is they are very insolated from the rest of the world's stock exchanges. That's because of strict capital controls here because of the fact that it's very difficult for foreign investors to invest here in the Chinese stock markets and also difficult for Chinese investors to put their money in stock markets throughout the rest of the world.

So, the downturn that you've seen in the Shanghai composite and the Shenzhen composite over the course of the last two weeks is largely a domestic phenomenon. And I was incorrect earlier. It's actually these two markets that are down most in Asia with currently the Shanghai composite down more that 3.5 percent, the Shenzhen down almost 6 percent.

It's important to know to that the Shanghai composite is still up some 30 percent over where it was a year ago. These two stock markets were witnessing some of the most spectacular growth seen anywhere in the world. But that's also part of the danger that attracted a lot of so called mom and pop investors. This is taxi drivers, housewives, teachers, students, some of whom were borrowing money from banks to invest in what seem like a surefire win and these people are suffering the most right now as the Chinese market has been going into this downturn.

I've personally seen some really unhappy faces and we're seeing again sales in the stock markets despite the fact that the Chinese Central Bank cut interest rates to a record lows over the course of the weekend. We'll be following this closely. Lynda.

KINKADE: Excellent. Stay on it.

[00:15:00] Ivan Watson in Beijing, thank you very much for that update.

And you, of course can follow all the developments in Greece in our website. CNNMoney has details about the Greek government's efforts to assure people their money will be secure and the ongoing standoff between Greece and Euro group. That's all in money.cnn.com.

Tunisia was stepping up security in tourist zones following Friday's deadly terror attack. At least 38 people, mostly tourists were killed when the gunman open fired a beach resort in Sousse. 15 of the victims were British citizens but that number could double according to Britain's Press Association since many of the victims still haven't been identified. But in a sure defiance, some tourist, say they're not going home early. CNN international correspondent, Nick Paton Walsh, reports.

(BEGIN VIDEO CLIP)

NICK PATON WALSH, INTERNATIONAL CORRESPONDENT: They will not be moved. A defiant stance pool side mingling with chlorine, sun cream and beer were 46 hours earlier, their fellow guests were gunned down German and British tourists were finishing their holiday, their music even. Each British's apocalypse spirit to Germanic resolved a bit not to let them win. Nathan (ph) said Tunisian jobs depend on tourists not fleeing.

UNIDENTIFIED MALE: Then it is a very different atmosphere. Now, it's all very chilly and, you know, it's just not the same as all it was and I think, you know, what we're going to do is just stay here until the rest of -- until holiday finishes and then leave. And then, you know, we don't really want adventure too far outside resort because we're still so unsure of what's going to happen and I think we are in the safest place at the moment.

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

UNIDENTIFIED MALE: 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 the areas still riddled with bullet marks.

WALSH: (Inaudible) to wash the sand from the beach of and wonder back towards the bullet holes.

UNIDENTIFIED MALE: How many guests?

UNIDENTIFIED FEMALE: 50, 40.

UNIDENTIFIED MALE: 40 stood here.

UNIDENTIFIED FEMALE: 40, 50.

UNIDENTIFIED MALE: All German?

UNIDENTIFIED MALE: 10?

UNIDENTIFIED FEMALE: 20.

UNIDENTIFIED MALE: 20. And the rest, British?

UNIDENTIFIED FEMALE: English.

UNIDENTIFIED MALE: English.

UNIDENTIFIED FEMALE: Yeah, British.

UNIDENTIFIED MALE: And they will never leave? All will stay.

UNIDENTIFIED FEMALE: They're staying.

WALSH: Many here were on a tour when the attack happened but Furca Schoemaker (ph) was in the scene.

UNIDENTIFIED MALE: Suddenly, it is explosions. And this happened, smoke, and I looked, yeah and I say to my wife, "Hurry up, hurry up." And we are sent from the (inaudible). There's woman running in this direction and I have -- and that so silent, yeah. (Inaudible)

WALSH: Attack inspector from (inaudible), he still goes to the beach where he saw many died.

UNIDENTIFIED MALE: Here a woman, yeah, (inaudible) red cross here and (inaudible) and die over here and a dead person, younger -- a young lady like here.

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

(END VIDEO CLIP)

KINKADE: Still to come the U.S. and Iran are going to miss their deadline for nuclear deal. Stay with us to find out why both sides agree to work through it.

And temperatures are expected to soar in Europe this week. We'll see just how hot it can get, after the break.

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[00:20:43

PEDRAM JAVAHERI, CNN METEOROLOGIST: Buckle up, here we go. Some of the hottest weather in about three years across much of Western Europe. Massive area of high pressure beginning to build. You can actually see our storm system here, kind of pushes way towards the northwest of Europe. You typically would see that begin to impact the region but the models do a pretty good job showing you how easily it gets deflected off to the north here as high pressure, has a firm grip over this region. In fact southerly flow, warm air coming out of Africa, the contours did a great job showing you that temperatures could be among the hottest we've seen here for areas of Spain.

In fact, if you can take you to Sevilla (ph). Look at the perspective. Some people -- yeah, I don't know if this is a safe thing to do but certainly will cool you off very quickly across parts of Spain, Madrid, shooting up into the 40s, notice a little cooling trend, rebounds quickly way above the average of 29 for this time of the year and of course not just Madrid.

London with Wimbledon in effect here over the next coming couple of days and temperatures only warming up into the mid and upper 30s when we should be at 22 degrees for this time of the year.

So here we go for your forecast, for your Monday, Paris at 29, Madrid began making it up to 41 degrees with the 20s around Kiev and Moscow back towards Southwest Asia.

Guess what, Tehran in on some of the warmest weather of the year as well at 42 degrees. Karachi finally seen a cooling trend although it is a little humid in this time of the year, climatological norm for the heat.

(COMMERCIAL BREAK)

KINKADE: Welcome back. The deadline for a Iranian nuclear deal is just one day away. The both sides have agreed to work pass it and continue talks in Vienna.

On Sunday, U.S. Secretary of State John Kerry and Iranian foreign minister Mohammad Javad Zarif had a face-to-face meeting. And official says both sides acknowledge there's still more work to do to reach a deal in this round of talks. Both sides are hopeful of a final comprehensive agreement will happen.

And as Iran's foreign minister lobbies for a nuclear deal that many of these people won't. Some Iranians don't expect the U.S. to be fair during the negotiations. CNN's Fred Pleitgen tells us what's behind their distrust.

(BEGIN VIDEO CLIP)

FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: The combination lock still works, even 36 years after Iranian protesters raided the U.S. embassy in Tehran. This used to be the secret area allegedly used by the CIA. An Iranian say something's found here back then, still complicate relations with America today even as many here hoped for nuclear agreement and better relations with the west.

UNIDENTIFIED MALE: (Speaking in Foreign Language)

PLEITGEN: "Iran is a super power itself," he says. "We will not accept any pressure".

UNIDENTIFIED MALE: (Speaking in Foreign Language)

PLEITGEN: And this man adds "We're looking for peace and a good deal but not a deal at any price".

The lack of trust between the U.S. and Iran that is lingered since the embassy siege of 1979 remain strong even today as negotiator in Vienna try to hammer out a final agreement to reign in Tehran's nuclear program that would also lift crippling sanctions imposed on the country.

Iran has laid out its red lines. It will not allow inspections at its military facilities and wants all sanctions to be lifted the moment an agreement is signed.

[00:25:00] The West wants to make sure Iran will never build an atomic weapon. The U.S. does not trust Tehran either and wants a rigorous verification regime.

America's distrust also dates back to the Islamic Revolution. Its spiritual leader was Ayatollah Khomeini who passed away 10 years later in 1989.

Iran just opened this gigantic shrine and mausoleum in his honor. Of course, for many Iranians this is a sacred place, a place to worship hence to remember, but for many it's also a symbol of their nation's dignity, especially standing up for the United States.

Most who come here are religious conservatives and it's no surprise, there's no love lost for the U.S.

UNIDENTIFED MALE: (Speaking in Foreign Language)

PLEITGEN: "I do not trust the Americans" is the man says and his friend adds "We don't trust Americans, we never trusted Americans and we never will trust Americans".

As Iran and the west try to reach a final nuclear deal, major differences remain and old animosities make it even harder to find common ground. Fred Pleitgen, CNN Tehran.

(END VIDEO CLIP) KINKADE: Temperatures in Spain are near all time June records as a heat wave moves right across Europe. This is the scene in Madrid where people are trying to cope with the heat. By mid week it's expected to spread to London and Paris with temperatures in the city of possibly reaching about 35 degrees. Meteorologist Pedram Javaheri joins us now with more. And Pedram, Central Europe will get particularly bad by the end of this week.

JAVAHERI: That's right, yeah, you know, Lynda, it is going to get extremely hot -- some of the hottest weather we've actually seen since 2012 across this region. So, pretty impressive spell of heating. You take a look, this is been building for several days.

You go back the last Tuesday in Madrid, shot up to 32 degrees, warmed up couple of degrees every single day especially on Saturday and Sunday. The hottest temperatures, so far as you said there in 2015 but the concern is we have the hottest May on record across portions of Spain. The hottest June on record is certainly getting close to it with the 44 degree high temp.

By the way, in Karachi when we reached 44.5 degrees up about a week and a half ago, temperature is similar to what their seeing across Karachi effect and parts of Spain, it would be warmer on Monday afternoon than in much of a Southern Pakistan but of course a lot different situation when you're talking about lack of their conditioning, electricity as well. But you see what people in Madrid have been doing in recent is finding some of the fountains, trying to cool off.

And look at this expansive area of high pressure. As it tries to build, we get southerly flow which means warm air coming out of Africa. Of course, high pressure goes to the north. So, the clouds began really of parting out of areas where you typically with some cloud covering them and then parachutes up into the upper 30s. Warm air since August 2012, notice, it tries to cool off. Average is 23 for this time of year, goes right back up to 39, 37 degrees.

London also seeing the hottest temperature since 2012 as well with this trend that really doesn't look like it released itself too much even when it cools off, it rebounds back into 30s.

And important to note, Wimbledon, getting under way on Monday as well as across London, so the spectators, the players going to be dealing with the mid 30s across this region. This is a very, very dangerous situation when you're talking about this much heat for an extended period of time. Of course, we saw what happened about 12 summers ago, across Europe when there was a heat wave there. So, we got a lot of fatalities, we'll watch this over the next coming couple of days.

KINKADE: All right. Thank you very much, Pedram.

JAVAHERI: Yeah.

KINKADE: We'll talk to you soon.

JAVAHERI: Yeah. KINKADE: Now after weeks on the run an escaped killer is caught and fighting for his life, up next details on how on law and policemen captured David Sweat.

Plus, the latest on an explosion at Water Park in Taiwan that injured almost 500 people over the weekend.

(COMMERCIAL BREAK)

[00:32:07]

KINKADE: Welcome televiewers in the U.S. and around the world. I'm Lynda Kinkade. We're following breaking news. The massive three week manhunt for state killer David Sweat in upstate New York is finally over. Right now he's in a critical condition at a hospital. A state police sergeant he saw the fugitive in a field on Sunday about two miles or three kilometers from the Canadian border.

Sergeant says, Sweat started to run, that's when he shot the convict twice in the torso. Sweat was unarmed at the time. His mother says she's relieved that her son is alive and knew Sweat would never head to her house after breaking out of prison.

(BEGIN VIDEO CLIP)

PAMELA SWEAT, DAVID SWEAT'S MOTHER: No, my son knows that if he would have came here I'm going to knock him out and had them guys take him to the jail by themselves because that's just the way I am. I've always done it to him when he was bad.

(END VIDEO CLIP)

KINKADE: Sweat escaped from a maximum security prison with Richard Matt. Police shot and killed Matt on a Friday. My colleague Errol Barnett spoke with former with former FBI Assistant Director, Tom Fuentes about this manhunt and its dramatic conclusion.

(BEGIN VIDEO CLIP)

ERROL BARNETT, CNN ANCHOR: A 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, FMR. FBI ASSISTANT DIRECTOR: I think it is pretty amazing that they were on the run for three weeks, although when you see the pictures of that force 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 and for people who are outdoors, and they know that you can be three or four feet from somebody in deep woods like that and not noticed. And of course the irony is that the prisoners in that jail are allowed to wear civilian clothes including dark force green shirts and pants that blend in, in the woods.

BARNETT: And we're 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 begun 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 he even more than stopping the border would be stopping him from getting back into the woods and as Sweat was running and heading for the tree line but that officer knew if he made it to the tree line they could spend the next three weeks looking for him again in the woods that that's how quickly he might be able to disappear again or invade someone's home or cabin once he got back in the woods and continue the treat to the general public that he post.

[00:35:00]

BARNETT: Now these were of course two convicted killers who escaped from a maximum security prison. What made this search so dangerous is that the police were telling us these men have nothing to lose, right, because there would be back in the same situation they were in. But 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 help 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 rockstar out of all this. And that's what usually happens that personalities like Sweat and Matt are very narcissistic. Yes, they're psychopaths, ambitious murderers but that's part of their narcissism. It's all about me, its all -- they only care about themselves.

And he may be more than ready to talk when they get him just to be the star of his own movie here, you know, in effect to be able to say how they did it. So I think a very skilled pair of interrogators or interviewers should be able to get that out of him. And I know people say always, "He'll never talk and all that." I don't believe that. I've worked organized crime, all my carrier in the FBI 30 years, also terrorist others. And they say they won't talk but often they can't wait to share their story of how great they are.

BARNETT: Yeah, and of course, we can't forget this is a man who was charged with killing a police officer certainly an unsafe character but...

FUENTES: And if I could add one more comment?

BARNETT: Sure.

FUENTES: What an irony to be captured in a town name Constable. And of course, you know, the slang term in America cop comes from the British constable on patrol...

BARNETT: There you go.

FUENTES: ... so that was his big mistake going to Constable.

BARNETT: Perhaps some poetic justice there of CNN law enforcement analyst Tom Fuentes. Thanks for your insight form D.C. FUENTES: You're welcome.

(END VIDEO CLIP)

KINKADE: And the story has so many moving parts and incredibly interesting angles that will come possibly or get to right now. You can see much more at cnn.com including the rest of the interview with Sweat's mother. She says he always got into trouble and threatened his own father with a baseball bat when he was just nine years old.

Uncertainty in Greece, it says the country needs default. The extreme steps officials have taken to prevent a total collapse. That's still to come.

Also ahead, a gay rights parade in Turkey gets broken up by police. We'll tell you why. Stay with us.

(COMMERCIAL BREAK)

[00:40:36]

KINKADE: Welcome back a new amateur video shows what appears to be the gunman in a Tunisian terror attack. You can see someone dressed in all black running on a beach in Sousse. CNN can now confirm the authenticity of this footage. At least 38 people mostly terrorists were killed when the gunman open fired at a beach resort on Friday. 15 of the victims where British citizens and that number could double according to Britain's Press Association. It says many of the victims still haven't been identified.

ISIS is claiming responsibility for the attack but it's unclear whether the group had a direct role. And the terror group has also claimed the responsibility for suicide bombing in a mosque in Kuwait on the same day. CNN's Ian Lee got exclusive access inside the mosque and spoke to survivors of that attack. We need to warn you some of you may find these images disturbing.

(BEGIN VIDEO CLIP)

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: Carnage frozen in time, pieces of lives lost. An ISIS suicide bomber terrorizing a house of worship.

YAQOUB AL-HAMAD, WITNESS: We did not do anything to instigate this. God, we were just praying for God's sake.

LEE: Video obtained by CNN shows the chaos seconds after the explosion that killed at least 27 and injured more than 200. The perpetrator named as this man Fahd Al-Qaba'a, a Saudi national. Despite multiple arrests many feel uneasy.

UNIDENTIFIED MALE: How am I supposed to convince my son -- my 13 year old son to come to Friday, to come to the mosque next time? Seriously, what guarantees do I have to give them?

LEE: Among the rubble of the Imam Sadiq Mosque we find Ali al-Mumin praying. The ISIS bomber killed four of his close friends. Police show me where the massive explosion ripped through the mosque. Doctor Nael al-Hazeem aided the victims but only after searching for his sons.

NAEL AL-HAZEEM, DOCTOR: The only thing I was thinking about where are my kids. And then I went back to look for them. And then just like they were just coming doing the same thing running to me. And they were coming to me and holding me and I was looking at my son and he had blood coming from his hand and his foot. And I told him are you OK but he was in so shocked move that he could not even talk.

LEE: The boys would be OK but many others wouldn't be. In Kuwait's main hospital we find some of the youngest victims. Family members have yet to tell 9-year old, Ali, his father was killed. For now they distract him with cartoons.

MOHAMMAD AL-ATTAR, SURVIVOR: Architectural engineer.

LEE: 14-year old Mohammad al-Attar dreams of being an engineer.

AL-ATTAR: And the shock waves sent me flying till -- so I fell and beside me was like a library so it was this distracted and it fell one me. And then my father picked -- pulled me away from the carnage and he took me outside.

LEE: Mohammad lost a toe but some of the damage you can't see.

AL-ATTAR: But I feel incapable because I can't walk, I can't like do anything, I just sit here and I can't do anything. And I -- like I feel alarmed because if a lot of family members come visit me but because I can't hear very well, so it's like I'm isolated alone.

LEE: There's a sense of unity in Kuwait, a rare commodity these days in the Middle East. Sunni and Shiite coming together in the face of terror. A local youth group delivers flowers to the victims. A heavy door saved Salah al-Hazeem's life while everyone around him was killed.

Are you angry -- or how do feel now?

SALAH AL-HAZEEM, SURVIVOR: No, no I'm not angry. I'm happy. That's what's happened -- make the Kuwaitis together again, more. I see love. I see love in the Kuwaiti eyes.

LEE: In the aftermath of the worst of humanity, the best shines through. Ian Lee, CNN, Kuwait City, Kuwait.

(END VIDEO CLIP)

KINKADE: And in France investigators are trying to piece together motive in the attack at the U.S. owned chemical factory near Lyon.

[00:45:02] Heavily armed police took the suspect, Yassin Salhi, back to his home Sunday to conduct more searches. Authorities say Salhi, an employee at the plant, ran to delivery van into a warehouse in Friday causing an explosion. Reuters reports Salhi admitted to killing his boss beforehand. Police found the victim's head hanging from a fence at the scene.

We're now on a top story, the deepening debt crisis in Greece as the country heads for financial collapse. Greek officials have put some restrictions into place to prevent that. Banks are closed and will stay that way for at least a week.

The cardholders will now be limited as to how much they can withdraw from ATMs. And Greece could default as early Tuesday, which is when must make loan payment to the Internation Monetary Fund.

Matthew Karnitschnig, he is chief Germany correspondent for POLITICO and he joins me now on the phone from Berlin with more on this.

And, Matthew, Greece obviously risks defaulting on this loan and possibly will move to exiting the Eurozone. What sort of implications could that have?

MATTHEW KARNITSCHNIG, POLITICO CHIEF GERMANY CORRESPONDENT: Well, it can have very serious implications not just for Greece but for the entire Eurozone. And I think we'll hear that later today. The Euro is already falling pretty precipitously and you're going to have to look, this morning, I think, at the other vulnerable countries in the Eurozone -- Portugal, Spain, possibly Italy to see what bond market say about this, what this could mean for them.

This is a big fear a couple of years ago that if Greece fell out of the Eurozone that it would kind of, you know, there'd contagion and that would attack these other countries and that you would have this kind of domino effect. At the end, the entire Euro project would collapse because Eurozone is great today as they were then but you still could see some contagion.

KINKADE: And the prime minister has a sort of extensions on the bailout. If the office know extension -- if the office know a concession rather, what's the likelihood of a last minute extension from the Euro group?

KARNITSCHNIG: Well, over the past few hours it doesn't really look very positive to be honest, Tsipras, the Greek leader gave a speech last night which he seemed very defiant and again the blames, the Eurozone leaders for pushing this crisis to the brink. They say the same thing about him. So it doesn't seem like there's a lot of common ground and there's no indication that the two sides are talking right now.

Yesterday, the European Commission president, Juncker, put a proposal out there that the two sides have been discussing last week. He took the sort of unusual step of publishing it for everyone to see so that Greek voters could have a look at what the European Union had to have put on the table. So it doesn't seem like there's any scope for a short-term deal at the moment.

KINKADE: I'm sorry. I mean Greece claims that it's being forced into a corner. We heard the Greek prime minister talking about the fact that he thinks he's being black-mailed. What's your take on the situation as we've seen these talks going for months? KARNITSCHNIG: Well, I think that once the Syriza Party, this leftist party came with the power at the beginning of the year with a mandate really to end the painful austerity measures, these economical reforms that they've had to pushed through spending cuts and that type of thing. I think that that really poisoned the negotiating climate with Europe because Syriza came in and basically said there's no way we're going to accept anything less than debt release and for you to reverse -- to allow us to reverse these reforms.