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Greece Introduces Capital Controls on Banks; Escaped U.S. Prison Captured; Singapore Looks To Retain World's Best Airport With Two Expansions; European Interior Ministers Visit Site of Sousse Terrorist Attack. Aired 11:00a-12:00p ET

Aired June 29, 2015 - 08:00   ET

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


[08:00:24] MANISHA TANK, HOST: I'm Manisha Tank in Hong Kong. Where ever you are in the world, a warm welcome to News Stream.

The head of the EU commission says he feels betrayed by Greece with no bailout deal in place and the country headed for default.

The terrifying scene at a Taiwanese water park as a fire kills one person and leaves hundreds with severe burns.

And a long manhunt is over in the United States as a prisoner who escaped from a maximum security jail is back in custody.

Greece's long running debt saga has hit a fresh low with Athens looking almost certain to default on a critical debt payment to the IMF.

It's due on Tuesday.

Greece is right on the brink of bankruptcy. Government coffers are empty, and even the European Central Bank has refused to provide any more

emergency funds.

So, Athens has decided to roll out new emergency measures to prevent a run on its banks.

So, what does this actually mean for Greeks? It means the banks are closed. And there are extreme limits on ATM withdrawal, their capped at

just 67 dollars a day. And that's if you even have an ATM card. Some pensioners without them, well they're still waiting to hear how they can

even access their money.

The only the government can physically keep enough money in the bank is to refuse to let Greeks access their savings. So you just can't take

that money out.

Well, the Greeks have coped with more than six years of economic decline, but this is the latest threat of default. And it has residents

bracing for the worst as our Isa Soares reports, some business owners are losing faith in the country's financial system. Here's that report from

Athens.

(BEGIN VIDEOTAPE)

ISA SOARES, CNN INTERNATIONAL CORRESPNDENT: Among antique vases, porcelain statues and paintings of old, tourists bargain for a piece of the

Greek past.

It's a fleamarket full of history with tales to match it. Yanis 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.

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

After five 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?

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 at the last minute we will have a deal"

Speaking to people here, there is a growing sense of anger as well as frustration with the EU, because the Greeks tells me the creditors have

been unable to understand what the economic plight is like, what life has been really like for the past five years.

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

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 discord, misery, and no one feels safe.

Despite these feelings of desperation and frustration, Yuanis (ph) believes 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 will be just as painful as going back to the drachma."

Regardless of the outcome of Sunday's upcoming referendum, both Yanis and Yuanis (ph) 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.

Isa Soares, CNN, Athens, Greece.

(END VIDEOTAPE)

TANK: So, let's get the latest now on the reaction to all of this to these events in Greece itself. Our Richard Quest is in Athens. And

Richard, today we've had some very emotive language from the -- in fact, I'm going to have to stop there, we won't be able to speak to Richard just

-- in seconds. The British home secretary is actually in Tunisia right now. She's at the hotel where dozens of tourists were shot and killed.

She's going to discuss with the Tunisian government how to work on intelligence in security matters. Let's listen in.

(BRITISH HOME SECRETARY PRESS CONFERENCE)

[08:07:55] TANK: OK, so we were just listening there to Teresa May, the British home secretary speaking in Sousse in Tunisia. This of course

some days on from that horrific attack on tourists there. We're going to have more on Tunisia in just a few minutes. Also ahead here on News

Stream, chilling screams ring out when a festival goes horribly wrong. We'll update you on Taiwan's deadly water park explosion. Stay with us.

(COMMERCIAL BREAK)

[08:10:01] TANK: You're watching News Stream. And you're looking at a visual version of all the news we have for you. We've already told you

about Greece closing banks and putting restrictions on withdrawals. Later, we'll look at what went wrong with SpaceX's latest rocket launch. But now,

let's turn to Taiwan.

Hospital officials say one woman has died in the wake of Saturday's explosion and a fire at a water park. The 20 year old had suffered burns

to 90 percent of her body. Nearly 500 people were injured when a flammable powder blew up over the stage and a fire engulfed partygoers.

More than 180 are in an intensive care. Police say they arrested two men: the event organizer and the engineer in charge of lighting and

hardware. Both have since been released on bail and have not been charged.

So, let's bring in CNN's Kathy Novak for more on this story now. She's in New Taipei where the water park is located. Kathy, I know that

the water park was shut down, but otherwise, what do we know about the inquiry into what actually happened?

KATHY NOVAK, CNN INTERNATIONAL CORRESPONDENT: Well, those investigations are continuing. We are told by fire authorities that they

do strongly suspect that this powder obviously is to blame, but what they're looking in to is precisely how it was ignited, whether it was

perhaps faulty wiring, whether it was lighting maybe, it was something as simple as people smoking.

But what we're also hearing tonight from a company that once sold this powder to the organizer of this color play party, and that organizer has

told us that the boxes that are used to ship these packets of powder are clearly labeled saying that this powder can indeed become flammable.

We saw the results of that in that awful video of exactly what happened here at this water park on the weekend. And now we're facing the

situation where there are 200 or so people in critical condition in hospital out of about 500 who have been injured.

They're suffering not only very severe burns like the 90 percent of burns to her body of that woman that did pass away, but there are also

suffering damage to their respiratory systems, to their internal organs, because they've now inhaled that powder, which we know to be flammable.

TANK: Yeah, and for those who -- I mean, we're seeing repeats here of the video. You know, there were many people there who took amateur video

footage of what happened on the night. But it's worth pointing out to them you see a burst of this powder into the crowd. It comes from what seems to

be a unit on the stage. (inaudible) disperses of course in the air, some on the ground and the fire department, as I understand it saying it ignited

from the ground up and then also where it was dispersed in the air.

Kathy, in terms of finding out, you know, if people all over the world, I'm sure, will have seen powder like this used in places. Is there

any time frame, do we know, on finding out more about how this is caused and how others can avoid it? And as I understand it, has it now been

banned in Taiwan?

NOVAK: It has been banned nationwide until further notice. The premier is saying that it will not be allowed at any events here until it

can be shown to be safe. And it's questionable when that might happen, because what we know about this powder -- or we're told by the fire

authorities -- is that it sorts of the simple chemistry of it that these -- this powder, which is a very fine substance. In small quantities -- they

were handed out in small bags to people who went to this event -- in small quantities it should not be dangerous. These events, as you say, are held

all over the world. They've been held here at this very water park before. They've been held around Taiwan without incident.

But the problem is, is when they come in very high volumes. And that's what we saw in that video that you're referring to, that large

quantities of this powder was shot into the air by the organizer out of these sort of propellant guns. And it was that when it mixed with the air

and something caused that ignition, that's what cause that explosion.

And so that is why police are not looking into it and investigators and prosecutors are talking to the organizers and also the person

responsible for the hardware management of this event to get more details about exactly what equipment was used and what they might or might not have

known about the dangers associated with shooting that much of this fine powder over this crowd of, it must be said, very young people.

The woman who passed way is only 20 and so many of the people who are suffering severe burns in hospital are in their teenage years.

TANK: Yeah, indeed, so sad. They went out for what should have been a good night and then ended up in the midst of this horrible, horrible

accident. Our hearts really go out to those affected badly.

Kathy, thank you very much for that.

Now, new video has surfaced in Tunisia where the British prime minister's office is now saying that 18 British nationals were killed in

Friday's massacre on the beach just a few days ago. I was saying that that video has now surfaced. And in it, you can take a look. If you can see

holding the camera -- you can tell that from the camera position, that witness is running for safety.

CNN has not yet verified the authenticity, though, of this footage.

Later, the same footage appears to show the aftermath of the massacre. At least 38 people, mostly tourists, were killed when a gunman opened fire

at the beach in the resort of Sousse.

Well, ISIS has claimed it was behind the attack, but new comments from the Tunisian prime minister suggest that isn't the case.

CNN senior international correspondent Nick Paton Walsh joins us now from Sousee.

We heard just a short while ago from Teresa May, Nick, now saying 18 Britons were killed in that shootout. Do we have any more details on the

gunmen and how all of this, how the investigation is coming together now?

NICK PATON WASLH, CNN INTERNATIONAL CORRESPONDENT: Well, you're joining me is just behind me the British, Tunisian and French interior

ministers -- Home Secretary in Britain's case -- giving a press conference in which they are condemning this attack. We know that Britain expects

their death toll to rise to 30, making this the deadliest attack the UK has suffered since July 7 attacks of 2005.

But, you mentioned the Prime Minister Habib Essid speaking to my colleague Becky Anderson. You'll see the full interview on CNN in the

hours ahead. But some key points he raised there. The first thing they were really unable to do was to verify that ISIS claim of responsibility.

ISIS put out a statement with a picture we were able to authenticate of the gunman appended to it, but it doesn't appear clear to the prime

minister at this stage that there is that direct evidence there.

What they think is that he was radicalized online after about 2013 or so. There may have been also students he was with at the University of

Kerouan (ph) where he was studying engineering, electronics specifically in the master's level, who were behind that radicalization, too.

But behind me now you've just seen Teresa May, I was in there a moment ago, seeing her talking to British tourists who are still at the poolside,

people who were there during the attack describing how they hid in a broom cupboard to get away from the gunman. And she praised their spirit of

staying here, to quote, not let them win.

That question is who really is them? It seems to be ISIS who wants to claim this. We are hearing from the prime minister that they are looking

into who it may have been who brought the gunman here in a vehicle, that's a key strand of the investigation, too.

But in that video you see, chilling, frankly, how he walks so calmly around this resort here gunning down people simply in their swimwear. And

now I think those countries behind here, interior ministers, will face that complex task -- how do you protect your tourists here. Who really

ultimately was behind this, who ordered this if it wasn't just Saif Al Ruzgui, the gunman working by himself and what more importantly can be done

to stop this happening in the future so close to Libya where ISIS have an increasing foothold.

Back to you.

TANK: Nick, I wondered, there were some initial reports of there possibly being a second gunman. Is that now confirmed to not be the case?

WALSH: From the beginning, the police were insistent there was one gunman as in fact was the director of the hotel. I spoke to him on the

night of the attack behind me here. That doesn't really change at all in terms of the official version of events.

The key question to be asked is the accomplices and we know that three of his roommates in Kerouan (ph) are in police custody and that the

authorities believe, quote, he was alone on the beach. So, there's no suggestion from the authorities that there were more than one gunman. The

question really still hanging in the air is the eyewitnesses of the attack, the survivors, do talk of what they think to have been more than one

gunman.

That doesn't really come across in the video you played earlier on. There seemed to be one gunman there as well.

But there's that confusion, I think. And of course the question of when security forces arrive quite who was doing what then. That is still

outstanding

But at this stage, the government very clear they believe one gunman here, Saif Al Rezgui, killed by police as he tried to exit the beach there

moving up the street just down behind me there. His blood is still on the floor.

TANK: OK. Nick, thanks very much to you and the rest of the team live from Sousse in Tunisia, the scene of that horrific attack.

Still ahead here on News Stream, New York State breathes a sigh of relief. And the state governor announces the nightmare is finally over.

More on the capture of an escaped killer. That's right after the break.

(COMMERCIAL BREAK)

[08:23:20] TANK: Now all this week on CNN, we're taking a look at how Singapore has a master plan for its future. It includes a big expansion

for Changi Airport, voted the world's best for three straight years.

In this addition of future cities, Andrew Stevens show us what Singapore is doing to hang on to that title.

(BEGIN VIDEOTAPE)

ANDREW STEVENS, CNN INTERNATIONAL CORRESPONDENT: It's dusty, rugged and empty. Years ago, it would have been impossible to stand here. Your

feet would have been in the sea.

While all this digging in the dirt may not look like much, this could very well be the key to Singapore's future.

This story starts here at Changi Airport, the nation's lifeline to the world, where every passenger needs a passport. You've probably heard about

the butterfly garden or how you can have a swim before heading to your gate.

But let's skip past all of that, to this: a verdant forest and 40 meter rain vortex with plenty of shopping and dining, of course, for a long

layover and for locals, all set to open in 2018.

But Project Jewel, as it's called, barely scratches the surface.

POH LI SAN, VICE PRESIDENT, TERMINAL 4 PROGRAM MANAGEMENT OFFICE: We're looking at the growth of the entire region with China, India,

Indonesia, growing rapidly. We think that we are actually sitting in a sweet spot right now in Changi.

STEVENS: Which means if Singapore wants to compete, it has to build capacity now. And that begins with terminal 4.

[08:25:05] STUART RALLS, SENIOR MANAGER, PROJECTS: This is something you're not going to see in any other terminal.

STEVENS: The heart of the $7 million plus project: the central galleria and every passenger, whether arriving or departing, will pass

through it.

RALLS: Because you've got three terminals, you sometimes fall into the path of it worked there, let's just don't rock the boat. But sometimes

you've got to tear up the book and relook at all your assumptions.

STEVENS: But it's not all blue skies. Limited space means you might have to set foot on the tarmac and board a bus to get to your plane. And

all of this still won't be enough.

Changi's existing terminals can handle some 66 million passengers, add terminal four in 2017 and capacity jumps to 82 million.

But Singapore wants to be able to handle at least 130 million a year. And it says it can do it by the middle of the next decade.

Which brings us back to this: the future home of terminal five, in effect a whole new mega-airport right next to the old one.

JOSEPHINE TEO, STATE MINISTRY OF TRANSPORT: It is in fact the most exciting challenge that we have, to turn this huge complex for the

passenger into something that is human scale.

STEVENS: As to exactly how they plan to do that, well, it's too early to get into details, but terminal four is their test bid, the planners say.

And they're looking beyond Singapore's shores for inspiration.

TEO: In terms of self-service check-in, there are quite a number of airports that have provided a very good experience. I was in Kingsford

Smith Airport in Sydney, Australia not so long ago, and I think this aspect of it is very well done.

STEVENS: Changi, they say, will always be a source of national pride, critical to boosting economic growth and connecting Singapore with the

world, which means the smaller steps taken today may have a big impact for generations to come.

Andrew Stevens, CNN, Singapore.

(END VIDEOTAPE)

TANK: Big, big ideas in Singapore.

You're watching News Stream. Still to come, the manhunt for two escaped killers in New York is finally over. We look at how police tracked

the last man down.

(COMMERCIAL BREAK)

TANK: HI, I'm Manisha Tank in Hong Kong. You're watching News Stream. And these are your world headlines.

The European Commission president says he feels betrayed by Greece and urged people in -- to vote yes in the upcoming referendum on whether to

accept the bailout terms their government has rejected. With no agreement in place for fresh funding, Athens is now scrambling to prevent a run on

the banks. They've been closed by order of the government for at least a week.

In Taiwan, one woman has died after Saturday's explosion at a water park, nearly 500 were injured, more than 200 victims are in critical

condition. Police say the event organizer and engineer have been questioned and released on bail. They were among five people questioned in

connection to the blast.

The three week manhunt for escaped killer David Sweat has finally ended. A New York State policeman spotted him near the Canadian border and

gave chase, eventually shooting him twice.

Sweat is in critical condition at the Albany Medical Center.

Well, David Sweat and his prison break partner Richard Matt have been -- were on the run for some time. They were on the run since early June.

One of them was shot and killed by police, the other is now being treated for gunshot wounds.

Well, Sara Ganim is at the medical center. And she joins us now for more on this story.

People likening this to a plotline from the movie the Shawshank Redemption, but many relieved that this is over.

[08:31:09] SARA GANIM, CNN CORRESPONDENT: A big sigh of relief here, that's right, especially when he was brought into this hospital here behind

me. David Sweat is in critical, but stable condition. That's what the governor here is telling CNN. And state police saying that he is beginning

to talk a little bit.

He's being treated by trauma doctors, vascular surgeons. He's in a secure area of this hospital, being kept under watch, obviously, as he

recovers. Police hoping that they will be able to talk to him to figure out how these two now only pulled off this brazen escape, but whether or

not anyone else helped them.

(BEGIN VIDEOTAPE)

DENNIS MCKENNA, ALBANY MEDICAL DIRECTOR: At this time, his condition is listed as critical.

GANIM (voice-over): This morning, convicted killer David Sweat is in custody and fighting for his life, suffering from two gunshot wounds to his

torso. Cheers from spectators as the escapee's ambulance arrives late Sunday at a hospital in Albany, New York.

WYLIE: His privileges will be extremely limited. He will be in basically 24/7 lockdown for the rest of his life.

GANIM: This exclusive photo obtained by CNN moments after his capture shows Sweat bloodied and in full camouflage guard. You can see in this

photo a wound to his chest.

MICHAEL DOYLE, RESIDENT, CONSTABLE, NEW YORK: I heard the shots, and I ran out with my phone. All of a sudden, the cops just swarmed like bees.

GANIM: Sweat was spotted Sunday afternoon by New York State Police Sergeant Jay Cook during a routine patrol, less than two miles from the

Canadian border.

A. CUOMO: He was alone when this happened. I said, "Well, you go home tonight and tell your daughters that you're a hero."

GANIM: The fugitive was jogging along the road when Cook spotted him. That's when Sweat took off, nearly making it back into the woods before

Sergeant Cook opened fire.

JOSEPH D'AMICO, NEW YORK STATE POLICE SUPERINTENDENT: The terrain is so dense, you can't see five feet in front of you. If Sweat made the tree

line, you know, he would have been gone.

GANIM: Investigators say Sweat and his now-deceased partner in crime, Richard Matt, used pepper to try to throw off police tracking dogs.

D'AMICO: We did have difficulty tracking, so you know, it was fairly effective in that respect.

GANIM: The dramatic capture coming 48 hours after Matt, armed with a shotgun, was killed in a shootout with police.

A. CUOMO: It was an extraordinary circumstance and the first escape in over 100 years, but one escape is one escape too many.

(END VIDEOTAPE)

GANIM: Now to give you a little bit of perspective, he was found unarmed, captured about 16 miles away from the area where his partner had

been shot and killed earlier.

You know, this search over the last three weeks, 1,300 different law enforcement officials involved.

Now they had aviation units, infrared technology, police dogs, but last week when I talked to the sheriff there, he told me it was going to

come down to good old fashioned police work. And guess what, it did. It ended up being one New York State police trooper who was on patrol who not

only spotted him, but was able to capture him and keep him alive.

TANK: All right. Sara, thank you very much for that. Sara out by the Albany Medical Center, the latest on that story.

Up next here on News Stream, an unmanned SpaceX rocket bound for the International Space Station explodes in midair.

(COMMERCIAL BREAK)

[08:36:01] TANK: Let's go back to our top story now, the financial crisis in Greece. With no deal in place and banks shut for a week across

the country. Let's get the reaction to all of that from Athens. Our Richard Quest does join us this time, at least I hope so. Richard, you

know, I wanted to talk to you about how this is feeling for people in Greece. It seems right now that whichever way you turn, it's hardship,

it's difficult.

RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT: Oh, absolutely. It is not only hardship and difficult, it is going to get worse. And that has

been acknowledged by the Europeans, but at the same time at the European center in Brussels they're also pointing out they're getting quite cross

in Europe, because they are basically saying that no longer can the Greek people be allowed -- or the Greek government be allowed to have their own

view to the Greek people.

For instance, Jean-Claude Juncker, the president of the commission, said that the plan never even mentions cuts in pensions. And he said it

three times.

He talks about the egoism of the government here in Greece.

And I think what that shows is a complete breakdown of relations, very uncordial, very unprofessional, certainly undiplomatic, between what's

happening here in Greece and with Brussels.

Have a listen to Jean-Claude Juncker, the president of the commission.

(BEGIN VIDEO CLIP)

JEAN-CLAUDE JUNCKER, PRESIDENT OF THE EUROPEAN COMMISSION: For me, Greece's exit of EuroZone has no (inaudible) and will never be an option.

But I always told them my Greek friends that by saying that Grexit is not an option they shouldn't believe that at the very end of the process I will

be able to present against all the others a final answer and the final solution.

(END VIDEO CLIP)

QUEST: But the problem, of course, is the discrepancy between the words and the reality. I'll give you one example, very late last night,

Yanis Varoufakis, the Greek finance minister, tweeted that capital controls were a contradiction in terms and were not a concept that the Greek

government were considering. Within five hours, those controls were in place.

The reality, the rhetoric and the situation is rapidly spinning out of control.

TANK: So, what do you make of it, then, Richard, because there are lots of people who are asking, you know, is this almost like a game of

chicken? Are they just hoping -- is the Greek government, or Alexis Tsipras just hoping that the other side will blink this week before a

referendum?

QUEST: Well, I think -- well, the referendum has domestic political reasons as well between the left and the right. It has an entire agenda of

its own involved all the way up to the role of the president in this country.

But ultimately, what do the Greek people -- now if you ask the Greek people just on the streets, they are betwixt and between, because they -- I

asked them straight out, how will you vote in this referendum, many say we simply don't know. We want to stay in the euro, but we do not want the

humiliation that comes with the existing European bailout plans. And that's the dilemma.

Another person put it to me, do we want sudden death or do we want death by a thousand cuts?

Between now and Sunday, those issues have to be crystallized in the minds of the Greek people before they vote on Sunday.

TANK: Richard, I would rarely do this, but I'm really curious, behind you is that actually a line at the ATM station? And can you tell us what

it's been like there all day today?

QUEST: Oh, oh, that's easy to -- all right, so here's the ATM. There are two of them, one just over there, one over here. The ATMs -- now, if

you have a foreign or an international ATM card you can take as much money out as your bank will allow, more the merrier. Fill your boots, as they

say.

However, if you are Greek you are restricted, and you are restricted to the princely sum of 20 euros, 20, 40, 60 euros a day. Now, that's about

67 dollars.

How long does that 60 euro limit stay? If the ECB turns on the taps and starts funding things like the National Bank of Greece again, then the

money flows out the machine -- money in the back, money out the front.

If, however, nothing changes, if it stays the same, then the 20 euros remains for the foreseeable future. And remember, if you look back at

Iceland and you look back at Cyprus, both of whom introduced capital controls, supposedly for a short period of time, that period ran into

years.

[08:41:11] TANK: OK, Richard thanks very much to you and the rest of the team.

For the explanation, the visuals, it's a very complicated situation, but let's see how things go this week.

Now, SpaceX is trying to figure out what went wrong with its latest mission. As you can see, the Falcon 9 rocket lifted off on Sunday, but

just two minutes it broke apart.

Well, the SpaceX CEO Elon Musk says investigators are trying to recover data from the final milliseconds of the flight. The private

company was carrying supplies to the International Space Station, something it has done successfully seven times already.

But while this is the first cargo launch failure for SpaceX, it is the third such loss in nine months.

Well, the ISS commander Scott Kelly was watching from orbit when the SpaceX rocket exploded. He tweeted, "today was a reminder that space

flight is hard."

NASA says that Kelly and his two station crew mates have enough food and water to last until October. But don't worry, the next resupply

mission is scheduled for Friday.

So, what was lost with the Dragon spacecraft? Well, it was carrying a new docking device and water filtration system.

And NASA says that it lost a lot of important research equipment, that includes two hololens headsets. Microsoft was working to bring augmented

reality to astronauts for future use in training and also for repair work.

The Microsoft CEO Satya Nadella tweeted to NASA that he's ready to try again.

And that is News Stream. I'm Manisha Tank. But don't go anywhere. World Sport with Amanda Davies is next.

END