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Early Start with John Berman and Zoraida Sambolin

New York Prison Escapee Answers Questions; European Stocks Down, Greece Heading Towards Default; NBC Cuts Ties with Trump. Aired 05:30-6a ET

Aired June 30, 2015 - 05:30   ET

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

[05:30:00] CHRISTINE ROMANS, CNN HOST: And what went wrong to them.

JOHN BERMAN, CNN HOST: Wall Street posting its worst day of the year. Europe in crisis and the deadline to fix it, hours away, we are live with the latest.

ROMANS: Britain overnight. The president news the plan to help millions of American working on a salary to get paid overtime, this could affect 5 million salary workers pay with this moment.

Welcome back to Early Start, I'm Christine Romans.

BERMAN Good to see you this morning.

I'm John Berman. 30 minutes past the hour.

Happening now, a prison escapee he is talking this morning. The one surviving convict who broke out of a New York maximum security prison is now answering some questions with investigators. And man do they have a lot.

35-year-old David Sweat is in a secure unit at the Albany Medical Center being treated or two gun shot wound suffered during his capture, he's been upgraded now, from critical to serious condition.

And now Sweat is revealing new details about how he and Richard Matt escaped.

Their plan to flee with prison employee Joyce Mitchell and how it all went so horribly wrong at least from their advantage point.

CNN's Miguel Marquez has the latest.

MIGUEL MARQUEZ, CNN NATIONAL CORRESPONDENT: Christine, John. David Sweat is speaking. And investigators want him to keep talking they want to get him well as quickly as possible, he is the best link they have to describe how he and Richard Matt were able to escape from that maximum security prison.

Telling him so far that plan A was in fact Joyce Mitchell. But they were going to meet her as soon as they popped out of that manhole, kill her husband and then go to Mexico.

Perhaps toasting margaritas while watching all of these unfold here, there -- that obviously did not work out saying that's -- and when she didn't pick him up they had to basically figure out a plan B, they did not do very well, they only got about 32 miles in 22 days, so about a mile and a half a day.

Not exactly breaking any speed records if you are running from the law, also telling investigators that he split with Richard Matt earlier because he was slowing him down, investigator say that Richard Matt does smell of alcohol when he was shot dead on Friday afternoon and that he was dressed in camouflage, fatigues, heavy boots, sort of like a hunter.

And that the bug bites on him were bad. But is -- he wasn't as swollen as they thought he would have been, saying that it is likely that they had some ability to cover themselves or some sort of cover or stayed in the cabin for some time and weren't out in the elements for the entire time that they were on the run.

What's next for Mr. Sweats, he is going to get better here, say hospital officials and then they will charge him with both the break out, burglary and anything else that he did illegally while he was out on the loose.

And then he will go back to prison and even face court on those other charges. Christine, John.

BERMAN: All tight, thanks to Miguel for that.

New information revealed by David Sweat, it could be good news for Corrections Officer Gene Palmer.

Palmer is charged with aiding the escape by passing frozen hamburger meat to the inmate. It turns out there were hacksaw blades hidden inside that meat.

Officials now say David Sweat has told the investigators that Palmer was not involved in the escape that he didn't know about the blades in the meat. And that the plot involved only Sweat, Matt and Joyce Mitchell that tailor inside the prison.

Even so, officials believe that others may have had a hand in the escape if only unwittingly.

(BEGIN VIDEO CLIP)

SHERIFF KEVIN MULVERHILL, FRANKLIN COUNTRY, NY: For as intelligent that these guys are breaking out of the maximum security prison, evading police or three weeks, Joyce Mitchell was plan A.

I think there's probably going to be others that are implicated that may or may not know that they played a role in this. You know, some small thing that somebody did for them, you know, when you add those all up it's kind of like building a wall, you know, everybody I think provided a brick, so to speak until there plan was complete.

(END VIDEO CLIP)

BERMAN: Some new information this morning about what's happening in the aftermath of everything that went wrong in Clinton Correctional.

The FBI is launching a federal investigation. Agents approving possible corruption and drug trafficking by prison employees.

The officials briefed on the inquiry, tells CNN that investigators were looking into whether the escapees were involved with the alleged drug trade and enjoyed greater freedom on the honor block because of that.

ROMANS: European stocks down right now. Greece heading straight for default after months of negotiations went no where, the country cannot make or will not make a $1.7 billion payment due to the IMF today.

Greece's existing bailout program officially expires today.

Lenders, refusing to extend it until after a referendum vote on Sunday, the Greek crisis is posting a threat to the global economy, their fears about contagion of a ripple effect throughout Europe.

All of this uncertainty triggering a global fell off yesterday. U.S. stocks have their worst drop in two years. Right now U.S. stock features an Asian shares stabilizing, bouncing back a bit from yesterdays looses. But European stocks are still lower.

The Greek Prime Minister urging Greek voters to stand behind him, he wants them to reject the European bailout proposal at the ballot box on Sunday.

Now that, but he call that referendum for Sunday John. The payment is due today.

[05:35:03] He says he will resign his hinting, he will resign if voters decide to accept what he calls an insulting ultimatum that will simply sent his country further into economic ruin.

European leaders say, no vote will effectively force Greece out of the Euro which would of course also mean economic ruin.

For the very latest, I want to bring CNN Isa Soares live in Athens.

Are there any indications this hour that the stalemate between European leaders and the Greek prime minister is cooling or are we looking at a not paying the bill due today and waiting for referendum in Sunday?

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: So a very fast moving story Christine.

We've heard in the last few hours that the E.U. Commission President Jean-Claude Juncker had offered tables the last minute. Deal last minute offer really to Alexis Tsipras.

And reports are in with Greek media that basically he has one confession to make. We don't know what that is in terms of option speak can make only one.

We do not know him sort speaking to CNN to that deal was tabled. But the offer was tabled but that is it.

Reports circling at the moment perhaps that shippers may come back with something. But this is all just speculations. Greek's holding on a better (ph) of breath for something -- for deal perhaps in the last of 11th hours.

These people here are concern. They are concern because as much as they want to stay in the Europe, they are also worried about the high levels of stereotype (ph), if they make a deeper into recession.

And now it's really just comes down to Alexis Tsipras because like you said, he's got the IMF payment that he has to make a 1.6 then the Euro, $1.7 billion by 6:00 P.M. Washington time 1:00 A.M. here. Same time the bailout expires also today and they're already, they have agreed that there's not going to be (inaudible) there won't be an extension. So now, this is really up to him. Does he pay out or did he take the risk going to referendum, I hope that people say "No".

It's really hard to gauge what he wants. He says he wants to stay in the Europe is hot is in Europe, Greek is hot as in the Europe.

But then, you hear in pointing fingers saying that Greece is being economic affixations and Europe isn't helping, Christine.

ROMANS: Oh, just a bunch of very bad choices and for Greek citizens, we're just trying to get 60 Euros out of the bank everyday, a very frustrative situation.

Isa, thank you, keep us posted if there were any developments down from last minute, last minute solutions.

Now Greece isn't the only place facing a huge deck crisis this morning. Officials in Puerto Rico say, "There is no way Puerto Rico can repay the $73 billion it owes.

The government run energy company as a debt repayment due on Wednesday, it is likely will dipoles on that.

The islands governor is asking congress for authority to declare Chapter 9 bankruptcy the way Detroit did when Detriot went bailout.

BERMAN: President Obama is set to announce a major move that the White House says will boost salaries from million of Americans, he will launch changes to overtime roles that were more than double the minimum salary level to qualify for overtime pay.

The threshold is now $23,000 a year. That will rise with that 50,000. So if you earn less than 50,000, once that rule goes into effect, you will get overtime if you work than 40 hours a week.

ROMANS: NBC Universal is cutting ties with Donald Trump citing derogatory statements made during his presidential campaign kick off announcement, in which Trump made extremely harsh comments about Mexican immigrants.

Here's what he said when announced he was running for President. (BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: They are bringing drugs, they are bringing crime, they are rapist and some I assume are good people.

(END VIDEO CLIP)

ROMANS: Company will no longer air the Miss USA and Miss Universe pageants. They have been a joint venture with Trump. And that will explore ways to continue "Celebrity Apprentice." They're going to keep "Celebrity Apprentice" but fire Donald Trump.

Trump fire back calling NBC week and standing by those controversial comments.

(BEGIN VIDEO CLIP)

TRUMP: I have a great relationship with Mexico. How can I not love people that give me tens of millions of dollars for apartment, you have to love them. My stands on immigration is correct. And some people may not think so but ultimately my stands is correct.

(END VIDEO CLIP)

ROMANS: Today Trump will be back in New Hampshire where a CNN poll places him second among the republican presidential candidate.

BERMAN: All right a big announcement today on the republican side. New Jersey Governor Chris Christie is set officially enter the race today. It is to the U.S. with this video right here in a campaign slogan telling it like it is.

The governor will make the announcement this morning in his hometown high school in Livingston New Jersey then he will head to New Hampshire. And stay there most of the week.

He has a New Hampshire or bust strategy, very different campaign that it'll look like about 18 months ago before he run with all these problems.

ROMANS: All right, 4th of July terror alert folks. The White House is now talking about this new ISIS threat.

BERMAN: Plus new arrest on the ISIS inspired hotel massacre what we are now learning about the gunman new information this morning.

[05:40:00] It's coming up next.

(COMMERCIAL BREAK)

BERMAN: Federal officials are warning this morning. The threat of Islamist terrorist, the ISIS has been for years.

The FBI has ramped up its surveillance of some suspects embossed counter terrorism efforts to fight radicalization of young people online.

This, as the White House is addressing concerns about the possibility of domestic terror attacks by ISIS over the 4th of July.

(BEGIN VIDEOCLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: There is no specific credible intelligence to indicate any threats against celebrations over the 4th of July weekend.

However, we have repeatedly seen calls for violence over the past year by leadership and supporters of ISIL against members of the military and military installations, law enforcement of the U.S. government and the American public.

(END VIDEOCLIP)

ROMANS: Authorities in Tunisia however, announced a number of arrests in connection with Friday's terror attack in a popular beach hotel. The arrests are part of the nationwide manhunt for accomplices. The ISIS is claiming responsibility for the attack which killed 38 beachgoers. And majority of those victims were from the United Kingdom.

British Prime Minister, David Cameron has promised a full spectrum fight against extremism, against his country.

CNN's Phil Black is in Sousse, Tunisia, with the latest.

And so I'm just stunned by the video. This new video where you can see the hotel workers rushing out of the compound towards the firing, toward the wounded and aimed vacation goers who are lying on the beach, it's just remarkable.

PHIL BLACK, CNN CORRESPONDENT: It is indeed Christine, many of the people who survived the attack on Friday say, they believed they only did so because of the helped they received from local workers in the hotel that was attacked and those working at nearby as well.

[05:45:15] But all the work of one gunman says, the Tunisian government they believe though that he did have accomplishes that he had support. They say they have arrested some of them and that seems to be an investigation focusing on the roommate of the apartment where he live most recently, in the university city about an hour from the beaches of Sousse here.

They also believe that he had connections to some sort of Islamist militant group across the border in neighboring Libya, where they are not sure which is one Libya is an increasingly lawless country, this country share a poorest border. And it is a country where ISIS increasingly has a strong foothold.

Meanwhile, here on the beaches and the resorts of Sousse there were still many people enjoying their vocations, even at the resort that was the target of the attack the Imperial Marhaba, there's still about 50 people there. But they're all enjoying themselves while being watched by increasing numbers of Tunisian security forces.

The Tunisian government is by tomorrow, they'll be around 1,000 armed personnel patrolling, protecting areas that are popular with tourist.

And the long, slow difficult task of formally identifying the victim of last Friday's attack. It's still going on, it's taking longer than normal, says the British government because these people work on holidays nearby the beach, by the pool, they weren't carrying formal identification.

There a long way from their homelands where their ones, people who can identify them visually, so it's taking awhile.

So far we know Germans, Irish, the British and Belgians. But overwhelmingly the British, the British government says 18 of its citizens, are confirmed among the victims. But they are still warning that that final number is going to be closer to 30. Christine.

ROMANS: Yeah, it is just so troubling and go from a coffee shop worker to a mass murderer maybe radicalize online that's just such a challenge for this government.

Thank you so much for that Phil Black.

BERMAN: Well takes a look, what's coming up on New Day Michaela Pereira joins us now. Good morning.

MICHAELA PEREIRA, CNN ANCHOR: Hello friends, all right boy, you know, that the authorities are a getting a lot out of David Sweat.

He apparently is spilling secrets from his prison escape in those three weeks on the run. Where did he and Richard Matt plan to go? Why did they change course? And why did he ditch his fellow escapee just days ago.

There's a twist emerging as well, we're going follow this where drugs being traded inside prison walls between convicts and guards, we're going to have the very latest in the FBI's investigation.

Also Donald Trump is out at NBC after those comments that he made about Mexican immigrants. The network call them derogatory, Trump responding well the best way he can threatening to sue.

We're going to take a look at all the fall out for Trump and how these could impact the 2016 Republican field. Things are getting more interesting by the day.

ROMANS: It's only 500 days till the election. So much to talk about it.

BERMAN: Everyone is so nervous about apprentice in the election. I worry about Miss Universe, I want to know what's going to happen to this pageant.

ROMANS: I know it's a concern for you John.

BERMAN: I know, deeply.

The tiara, someone's going to wear the tiara.

ROMANS: You could wear the tiara.

BERMAN: Someone was going to do it.

ROMANS: New this morning, Iran pending tactical mets (ph) to the nuclear talk as the U.S. now because they will not back down from earlier agreements.

Can a deal be reached? We're live.

(COMMERCIAL BREAK)

[05:51:56] BERMAN: New developments this morning. A last minute negotiations with Iran for a nuclear deal, Iran is now sending a group of senior officials perhaps highlighting a new high stakes moment in these discussion.

CNN's Nic Robertson is at talks in Vienna with the latest. Good morning Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yeah, good morning John Berman.

Right now, Secretary John Kerry is sitting down with the Foreign Minister of Iran, Mohammad Javad Zarif. They've been in the meeting up for almost an hour. And of all these things that have been held over the previous months and years.

Perhaps this is the key one, Zarif coming back to Vienna here with the head of Iran's Atomic Energy Agency also with the brother of the president both senior and influential figures on the Iranian side when it comes to negotiating here. But the key question is has Zarif come back with a changed plan?

The redlines have been put in place about a week ago by Iran Supreme leader seem to roll back agreements that were made three months ago in Switzerland. Then we heard from the U.S. State Department, senior officials last night saying that they believe that that plan made in Switzerland is the path to get an agreement.

They believe it can be done but they don't know if it will be done. And of course the contact to the meeting that's happening right now is the one that's going to say whether or not if there's a real chance of getting it done. So much ground has been covered. But what we heard from Iran Supreme leader last week seem to roll back apparent agreements on when and how many sanctions would be lifted and how they would be lifted or whether or not they could be snap back on about access for nuclear inspectors to different sites including military sites in Iran.

And also how long Iran would have to suspend its nuclear research and development. The agreement in Switzerland three months ago indicated 10 to 12 years. Iran's Supreme leader indicated that was way too long John.

BERMAN: All right some moments of high drama Vienna keep us posted when they come out to that meeting.

Nic Roberston in Vienna. Thank you so much.

ROMANS: All right Greece has a very big bill to page today. And it doesn't look like it's going to pay. And this is a huge deal for your money.

I'll tell you why next.

(COMMERCIAL BREAK)

[05:57:33] ROMANS: Well, busy morning I'm Christine Romans.

Let's get an Early Start on your money this morning. Now European stocks are lower again but their pairing their loses here bouncing up from the worst levels of the morning on rumors of a last minute bailout proposal for Greece rumors here folks because it is such a high stakes situation here.

Greece can no longer pay its bills it's expected to default on a $1.7 billion payment to the IMF due today. Greece its existing bailout program officially expires today it is tabling toward an exit from the Euro zone unless something absolutely amazing and unexpected happens in the next 24, 48 hours.

And all that uncertainty cause a global fell off in stock yesterday, yesterday the DOW down 350 points in worst drop in two years.

Now what's happening in the U.S. right now futures are looking a little more optimistic right now there is a feeling John Berman that there must be, there has to be some sort of diplomatic last-ditch effort to fix what is -- just a catastrophe for Greece in European Union.

BERMAN: Wall Street is actually saying what, me, worry futures up there we will see.

A capture killer, spill the beans. He is talking to investigators about his escape plan and what he thinks went wrong.

New Day starts right now.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Did he have any spite in him when he were taken down?

UNIDENTIFIED MALE: It doesn't appear that way.

He is already started talking which tells me they brought in an experience interrogator.

UNIDENTIFIED MALE: Their plan was indeed to go to Mexico. (END VIDEO CLIP)

ROMANS: The president with a new plan to boost pay checks for millions of Americans.

BERMAN: More than doubling the minimum salary level to qualify for overtime pay.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I've lost my job and I want to survive.

UNIDENTIFIED MALE: What's going on of course is that Greece is just about out of money.

UNIDENTIFIED MALE: It doesn't have the $1.7 billion that it needs to make it's leases loan payment.

UNIDENTIFIED MALE: NBC to Donald Trump you're fired.

UNIDENTIFIED FEMALE: He use some very offensive and derogatory language to describe Mexicans that come to this country.

TRUMP: I said drug dealers, I said killer and I said rapist.

(END VIDEO CLIP)

CHRIS CUOMO, CNN ANCHOR: We like to start in off the morning with that beautiful picture as we say good morning to you and welcome to your New Day. Its Tuesday, June 30th, 6:00 in the East.

Alisyn is off today. But Mich and I are here. And we have new information about the escape plan for those two New York convicted killers. David Sweat is hospitalized and he is talking to investigators.

[06:00:02] The two apparently plan to go to Mexico but when their get away driver never showed up they had to improvise their next moves.

There's a lot more to that story coming up.