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Death toll rises to at least 135 in Indonesia plane crash; Greek prime minister sends mixed messages; Iranian businesses hope for nuclear deal; Tunisian resort workers hailed as heroes; Europe feels the heat; "British Schindler" Nicholas Winton dies at age 106; U.S.-Cuba re- establishing diplomatic ties

Aired July 1, 2015 - 15:00:00   ET


[15:00:11] HALA GORANI, HOST: This hour on the World Right Now; pushed to the brink of financial collapse, how are Greeks reacting to their Prime

Ministers brinkmanship with European lenders?


GORANI: Also coming up victims of the attack on a Tunisian beach make the final journey home. We will show you today's most touching moments.

And ISIS demonstrates its deadly organization with multiple coordinated attacks in the Sinai Peninsula and what they mean for Egypt.

Plus history in the making; we are a step closer to seeing a functioning U.S. embassy in this city. We're live in Havana, Cuba.


GORANI: Hello, everyone, I'm Hala Gorani, we are live in London this hour. Thanks for being with us we'll take you all over the world with the latest

because this is the World Right Now.

Well it has been another dramatic and confusing day at times in Greece's financial drama. The day began with a surprise.


GORANI: The Greek Prime Minister Alexis Tsipras told the Eurogroup, the lenders, that he would agree to most of their bailout conditions. Now that

was seen as a major concession. But just a few hours later he addressed the Greek people urging them to vote no on those very conditions in

Sunday's referendum. Listen.

ALEXIS TRSIPRAS, GREEK PRIME MINISTER: (As translated) No is the decisive move for a better agreement which are planning to sign straight after words

of Sunday's result. That is clearly the desire of the people of how they would like to live the following day. That doesn't mean fall out with

Europe but just returning to Europe back with values. No means a solution to the debt which won't make it any bigger and won't jeopardize us trying

to improve the Greek economy and society.


GORANI: All of this came just one day after Greece defaulted on a $1.7 billion IMF loan payment.

The German Chancellor Angela Merkel told the German Parliament today that compromise is essential to solving this crisis. Listen.


ANGELA MERKEL, GERMAN CHANCELLOR: (As translated.) From the first day of the Greek crisis to today there is a basic question. Europe is a unity

based on law with a common destiny and it is jointly responsible and the nature of this union is the ability to compromise. Everyone must



GORANI: Everyone must compromise. What will that deal look like in the end. Let's go over to Athens now for the latest. CNN's Isa Soares is

there with more.

First reaction from ordinary Greeks. I'm curious when their Prime Minister sends a memorandum to the Eurogroup saying OK, OK, I'll accept most of the

conditions that I rejected last week. And then immediately turns around and asks Greeks to vote no.

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Confusion Hala, very simply. It really depends who you ask.


SOARES: If you has the no camp they will say they're happy with the fact that the (inaudible) stuck to his guns and using defiance until the very

end unlike the former Prime Minister if you remember Papandreou who said there was going to be a referendum and then he agreed to the terms without

a referendum. And people are saying well at least this one has promised exactly what he said he would and that was giving us a referendum, giving

the people a voice. Not really - people not really targeting the fact that he's already making concessions in some of the proposals that he apparently

put through to the Eurogroup. So that's the no camp.

And then the yes camp Hala, is just astounded that they've got to this situation in the first place. They said that he's been making very bad

decisions. That he shouldn't, you know he should be risking their livelihood especially in a week that you've seen so many people struggling

to get money out and really counting every single euro. They think he has been reckless. That is the side of the yes camp.

And there are those in between that are really not sure, they just want - they are weary, they're tired and they just want an end to this crisis and

they want the best - the best possible decision.

GORANI: Well, they want access to their money as well. It's starting to become very worrying for them I'm sure. Isa Soares live in Athens, thanks

very much.


GORANI: David Stubbs is a Global Market Strategist at JP Morgan Asset Management and he's here with me in the studio. What do you make of what's

happening here in Greece with Alexis Tsipras on the one hand saying I'll accept those conditions that I rejected last week and telling his people to

vote against them at the same time.

DAVID STUBBS, GLOBAL MARKET STRATEGIST: Sure it's been certainly a confusing day but I think the you know perilous nature of the situation is

forcing people to compromise. I think Tsipras you know put out an olive branch that he was willing to accept things that previously he had not

been. But you know if you look at his statements during the day they believe that debt relief has to be part of the solution here and the

creditors don't agree with that.

[15:05:09] STUBBS: And the question for the creditors I think is; how does this scenario work out in the medium term if the debt button is not


GORANI: Now, why is there no panic on the market's here? I mean we could be looking at Greece exiting the Eurozone and yet the Euro dollar is kind

of hovering around 1.10/1.11 over the last several days and equity markets are doing fine.


STUBBS: Sure. I think there's many reasons why markets recognize this is not the situation we had in 2010, 11, and 12. Greece is ring fenced in

many ways now, the connections into the economy have been greatly reduced in the banking sector. Its equity market is still you know hugely down in

terms of equity capitalization. It's not even part of many developed market industries any more.

And when it comes to the Euro of course many people look at the Greek economy and the Euro economy and say the Euro's better off without this

country. So why (inaudible) you surely would be a stronger economy.

GORANI: What are investors? I mean what are the market's pricing in right now? Are they pricing in a Grexit or not?

STUBBS: I don't think you can say that quite yet but they're certainly pricing in you know a series of rolling defaults here but of course most of

those defaults are to international creditors and institutions.

GORANI: And not to private banks.

STUBBS: Exactly, not private banks.

GORANI: I mean that's the big difference here. The fear of contagion has been removed.

STUBBS: Sure, it has. Now of course there will be there's always some fear of a bit of a fallout here.

It's very hard to predict the behavior of private sector actors, the companies and the households in the rest of the periphery say Portugal, say

Spain, if they see Greece really leave and obviously we don't know how that will affect the Greek economy.

GORANI: Here's the Dow Jones, this is live, that's the big board, we're up 105 points, about two thirds of a percent higher. So again yesterday was

also a positive day.


STUBBS: Sure, absolutely. I think that if you look internationally there's still a lot to like for equity markets here. America's economy is

clearly recovering from its first quarter slowdown. The Fed is probably going to raise interest rates in the, you know latter half of, you know of

probably the - of the third quarter, we think still September.

And then of course you've got Japan looking better and you have lot to like about the Eurozone economy outside of Greece. Growth is better, I mean .

GORANI: . Germany's doing better in terms of unemployment .

STUBBS: . Germany's doing better.

GORANI: . and growth.

STUBBS: Yes, there's a lot of export growth. Not just in Germany but other major economies as well. And if you look at the earnings in the

equity market they've suddenly become very strong and the investors are focusing on that.

GORANI: More in keeping with the equity price movements as well I suppose.

STUBBS: In deed.

GORANI: .. you could say. Thanks very much, David Stubbs, Global Market Strategist at JP Morgan. Thanks very much for joining us.

Let's get the latest on Greece's game plan and bring in Simos Anastasopoulos, he's the President of the American Hellenic Chamber of


First of all the referendum, what position are you taking on it for Sunday, July 5th; yes or no?

SIMOS ANASTASOPOULOS, AMERICAN HELLENIC CHAMBER OF COMMERCE: We are taking a yes position, The American Hellenic Chamber of Commerce as well as I

have to tell you all the other business organizations are taking a yes position.

GORANI: OK, could you explain why the yes position and why would you not be voting against this series of requests and demands made by the Eurogroup

because many are saying they are too stringent, they need to be renegotiated. Why would you vote yes?

ANASTASOPOULOS: Of course we understand that this is a very hard deal for Greece and not many negotiations have been made from our partners and the

institutions. However as it (inaudible) happens the way that our partners are taking their, you know the outcome of the referendum to be a no vote,

means out of Europe, means no more Eurozone for Greece. And this we cannot allow. Greece has always belonged to the Eurozone, always wanted to the

Euro, and therefore a yes positions is very firmly taking by all the companies in Greece.


ANASTASOPOULOS: All organizations including ours.

GORANI: Who do you -- right, and who does you're the head of the organization, who do you blame here? Do you blame Alexis Tsipras?

ANASTASOPOULOS: No we don't blame anybody. Greece is a - and (inaudible) for me to take any kind of political stance like this. Of course the

negotiations have taken too long, we've come to the end of these negotiations without a result. The Government believes today that with a

referendum it is going to strengthen our negotiation position tomorrow. So this is the position of the Government.

However we are told to decide you know with a referendum yes or no to proposals that no longer exists. And you know it was a proposal made for a

specific - for the extension of this last memorandum. This has ended, the proposal has ended, and so actually today we are told to vote on no



GORANI: But of course you're describing a surreal situation here. That you're going to the polls on Sunday to vote for or against proposals that

no longer exist. You still think this referendum should go ahead?

[15:10:06] ANASTASOPOULOS: That is correct as you say it. This is exactly what I said. We are called to vote on a proposal that no longer

exists and therefore it's actually the meaning of a yes or no is no longer about the proposal. It is exactly as the institutions take it to be which

is a yes or no vote to Europe, to the Eurozone and the Euro.

GORANI: What would happen to Greece do you think, the businesses, your members as well, the people you represent in your organization, the

organization - the business entities members of your organization if Greece exited the Euro. What would the impact be?

ANASTASOPOULOS: You know we've got an idea for the (inaudible) today that the banks are closed, nothing moves in Greece, everything is frozen. You

know there is no business, there's no economic life without the banks today.


ANASTASOPOULOS: And the banks are closed today already there is almost chaos in Greek business. So I expect that with a no vote and the stand

that the institutions have taken - have taken on that we would expect to see the banks close next week and then probably opening up with a haircut,

a different currency, I don't know what.


GORANI: Well certainly difficult times, uncertain times, thanks very much, Simos Anastasopoulos the President of the American Hellenic Chamber of

Commerce, we really appreciate your time on CNN this evening.


GORANI: A lot more coming up on The World Right Now. A tragic home coming.


GORANI: Ceremonies are held as the remains of Britain's killed in a terrorist attack in Tunisia arrive home. We'll have a full report.




GORANI: Welcome back. A somber home coming in Britain today. The Royal Air force has started to repatriate victims of last week's mass shooting in



GORANI: And the bodies of eight British tourists arrived at a base in England today. The UK is confirming now that at least 27 of the 38 people

killed in the massacre were in fact British.

Tourists from Germany, Ireland, Belgium, Portugal and Russia are also among the dead. CNN's Becky Anderson spoke to Tunisia's Health Minister today

asking why it took so long to complete the identification process.

SAID AL-AIDI, TUNISIA HEALTH MINISTER: It's not so long when you look at the international level, sometimes it takes two weeks, three weeks. We

have to be very precise. We can't have any mistake on the identification. We collaborate with investigators of the home countries of the victims and

we can't just stop to the recognition on the photos we need to have finger prints, we need to have DNA, we need to have or something like that to have

formal identification.


[15:15:20] GORANI: Let's get more now from Max Foster, he's live at RAF Brize Norton in England. And really just a heartbreaking scenes today Max.

MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: There there's another family here that pretty much knows that one of their relatives was a victim of

this attack but they still hadn't have - haven't had confirmation of his identity or her identity.

Literally just in the last minute Hala, I had an email from the Foreign Office, a statement from the Foreign Secretary, Philip Hammond actually

confirming the number of British deaths in that Tunisian attack now at 29 saying that one victim now remains who we believe is British but police

require further time to confirm the identity. Very, very difficult for all the families involved of course.


FOSTER: On this plane eight coffins, there will be at least 19 more to follow. A grim moment of reality for the families and the country. The

number of confirmed British victims of this beach massacre is still climbing. It was an attack on this country on foreign soil. Military

honors them for everyday holiday makers and the highest level of investigation.

PRIME MINISTER DAVID CAMERON: This is looking as I said previously from the protective security in hotels and resorts all the way through to

intelligence cooperation at the highest levels between Britain and Tunisia.

FOSTER: There will be a joint inquest in London into all the British deaths starting with these eight. Joel Richards, his uncle Adrian Evans,

and Adrian's father Charles Evans known as Patrick. Three generations of one family gone. Carly Lovett, a beauty blogger, just 24 years old.

Stephen Mellor who died shielding his wife Cheryl who survived. John Stollery, a social worker on holiday with his wife and son. Denis and

Elaine Thwaites, a married couple.

So hard has the country been hit a national commemoration service is being organized to remember those innocent lives cut short.


FOSTER: Hala expecting flights every day bringing more bodies back and then this inquest will take place. It's a very high level inquest because

this is seen as a national terror threat, a national terror incident and it's really being treated at the highest level. But for the families

involved they can't have their funerals until that initial process is over.

GORANI: And where are the families waiting for this? I mean what is the day like for them just their worst nightmare come true here.

FOSTER: Well some of the statements you get from them are just horrific. You know we were talking there about those three generations of one family.

A statement coming from the family, from a lady in the family saying her father - she's lost her father, she's lost her brother, she's also lost her



FOSTER: They were the best of buddies they'd all gone away on holiday to celebrate her son's exam results. Each one of these statements is

incredibly hard to hear but the sense of national grief is linked to the fact that it could have been anyone in this country because it was a random

attack, an attack on the U.K. so people very much associating with those families who are requesting privacy at this point of course which is why

we're some distance from the airport.

GORANI: All right. Thanks very much Max Foster, with this - just absolutely tragic homecoming for the victims. Thank you.


GORANI: Now to what's being called one of the biggest coordinated attacks ever on Egyptian security forces in the Sinai.


GORANI: ISIS is claiming responsibility for a series of bombings and ambushes that targeted army check points. Take a look at the black smoke

rising above the northern Sinai and this vide was actually filmed from Gaza, just across the border.

Egyptian security forces fired back calling in air support to bomb militant positions. Reports of F-16s being used by Egypt. Clashes raged for hours,

soldiers, militants and civilians all are among the dead.


GORANI: An Egyptian general spoke just a short time ago on State television giving new details on casualties. Let's get the latest now from

journalist (Mohammed Subri) in Cairo. He joins me now on the line. What's the latest on what happened today in Sinai? I know you cover that area and

you've spoken to friends and sources there.


(MOHAMMED SUBRI): We have just received some confirmed information here that the militant are actually receding out of the - out of the (inaudible)

and (inaudible) gradually taking control back of the whole town. Ambulances are also for the first today (inaudible) through the city and

tried to rescue whoever is out there lying in the streets injured or inside houses. We are hearing reports of dozens of bodies just lying on the

streets allegedly of militants and there are several (inaudible) vehicles that were targeted by F-16s we learned today. And it's apparent from some

photos that were coming through to social media websites that those vehicles were mounted by high caliber machine guns.

GORANI: Who are these Jihadists operating in the Sinai?

(SUBRI): Sorry could you repeat that question?

GORANI: Who are the militant Jihadists operating in the Sinai? Where are they coming from? Where do they get their funding?

(SUBRI): Well we are getting - we are getting conflicting (inaudible) the Egyptian regime can the Jihadists are mostly coming from the Gaza strip.

(inaudible) the same regime has claimed several times to have shut down completely or (inaudible). And we have - we have several sources on the

ground in Sinai concerning that a lot of those Jihadis' are local just some Sinai and some other (inaudible) in inland Egypt. But we - no-one has been

able and since the years of 2011, 2012 when reporting in Sinai was much easier, has actually been able to find Jihadis and sit down and investigate

formally to give us an idea of what nationality (inaudible).

Of course we have reports of Libyans, the (inaudible) the Chechnyans and even Europeans I believe the former head - head of the former commander of

the second army has claimed once that a Belgium citizen was held operating with the former (inaudible) that transformed into (inaudible) and pledged

allegiance to the Islamic state.


GORANI: (Mohammed Subri), thanks very much joining us from Cairo with the latest on a day of bloodshed, of violence between these Jihadist security

forces in Egypt as well including even some aerial bombing reportedly taking place. So serious situation developing with dozens and dozens of

people killed.

Still to come tonight; history is unfolding in Washington and Havana.


GORANI: A date has now been set for the U.S. and Cuba to re-open their mutual embassies. We're live in the Cuban capital after this.




GORANI: After 54 years the leaders of the United States and Cuba have confirmed they will fully re-establish diplomatic relations and that that

will happen July 20th.


GORANI: The U.S. President, Barack Obama made the announcement from the White House saying Washington and Havana will re-open embassies in their

respective countries. He says it is time for the U.S. to use a new approach to open up its communist neighbor.

PRESIDENT OBAMA: There are those who want to turn back the clock and double down on a policy of isolation but it's long past time for us to

realize that this approach doesn't work. It hasn't worked for 50 years. It shuts America out of Cuba's future and it only makes life worse for the

Cuban people.


[15:25:11] GORANI: Well Cuba says a lot of work remains between the two governments to build a fully functioning relationship including the U.S.

ending its long standing economic embargo. Our Patrick Oppmann joins me now live from Havana with more on the reaction to today's announcement.

Hi, Patrick.

PATRICK OPPMANN, CNN INTERNATIONAL CORRESPONDENT: A lot of expectations among Cubans here. You have to think Hala most Cubans here were born after

the revolution, they've never had a U.S. Embassy here in their lifetime.


OPPMANN: They've never seen an American flag flying over any kind of installation here so something completely new for them. Something that

many people never expected to live to see. Most of their lives they were told the United States was their mortal enemy. Well that's changing.

President Raul Castro says today that he was pleased that an Embassy will open here, that on July 20th Diplomatic relations will be finally resorted,

something that was cut off during the Eisenhower Administration in the United States will be resorted and a Cuban Embassy will open in Washington


When exactly is the U.S. Embassy going to open in Havana, no-one seems to know that just yet because of course Secretary of State, John Kerry said he

would like to be here for that day when the American flag goes up, when the American Embassy sign goes on the front of the building. And of course he

has a full plate right now with the Rand nuclear talks and many other diplomatic affairs.

But we're told perhaps the end of the month, perhaps early August Secretary Kerry could be here and for the first time in 54 years we once again see a

U.S. Embassy in Havana.


OPPMANN: But it's not the end, it's really only the beginning. The Cubans want to talk about lifting the economic embargo, the return of the

Guantanamo naval base, lots of really tricky issues. And the U.S. well of course wants to talk about human rights, the return of fugitives and many

other things including finally getting compensation for all the Americans and American companies that lost property here after the revolution took

power. So a lot to work out still Hala but incredible historic progress being made today.

GORANI: All right. Yes, some tricky questions and that's not the kind of thing you solve overnight. Thank you. Patrick Oppmann in Havana.

I'll have your world news headlines just ahead.


GORANI: But after finally seeming to give in to Europe just hours before, Greek's Prime Minister urged his people to do just the opposite. The

Greek's saga gets stranger, next.

Plus, this man witnessed the terror attack on a Tunisian beach and ran towards the gunman. His incredible story is still to come on the World

Right Now.



[15:31:57] HALA GORANI, CNN HOST: Welcome back with (ph) your top stories this hour. This Greek Prime Minister, Alexis Tsipras, is sending some

confusing signals about Greece's debt crisis. With banks across the country still closed, he first said today that he was willing to mostly

accept his creditors' conditions. But hours later he asked the Greek people to reject those same terms in a referendum set for Sunday.

Eight British victims who died in Friday's massacre on a Tunisian beach have arrived at home. Their bodies arrived by plane at RAF Brize Norton

outside of London. Sadly, more are on the way. At least 27 of the 38 people who were killed were from Britain.

A handshake and more than a bit of history. An American official delivered a letter from President Barack Obama to his Cuban counterpart, Raul Castro,

restoring diplomatic ties officially. For the first time in 54 years the two nations will have embassies in each other's capitals.

The death toll has now risen to 135 in a military plane crash in Indonesia. The disaster Tuesday is the sixth crash involving an air force plane in the

past decade. Indonesia's president has ordered a review of military equipment. CNNs David Molko is covering this story.


DAVID MOLKO, CNN CORRESPONDENT: A growing sense of tragedy across Indonesia and questions being raised about whether this crash could have

been prevented.

A sobering side of the military base here in Jakarta as caskets carrying the remains of several of those on board the C-130 Hercules were carried

off. The President of Indonesia, Joko Widodo, was there to pay his respects.

Now, questions being raised about Indonesia's aging military infrastructure - the president promising a full audit of the military.

At the site of the crash in Sumatra the focus is now shifting from recovery toward the investigation. Air force officials telling us, though, that he

does not believe the C-130 actually has the critical black boxes. So investigators may be looking at relying more on witness reports, radio

communications and the actual debris itself.

At the end of the day, though, whatever caused this crash, fundamentally it is a human tragedy. Families across the Indonesian archipelago affected by

this - not only military personnel on the plane, but relatives potentially going home to their villages for Ramadan - many of them waiting for news of

their loved ones. There is no hope of survivors at this point. But many are just waiting for their family members to be identified so they can

bring them home and give them a proper and dignified burial.

David Molko, CNN, Jakarta, Indonesia.


GORANI: Let's return to Greece now where the day after the country's default the situation has become even more confusing. It's a bit of a

head-scratcher here, because the Prime Minister, Alexis Tsipras, with both the Greek and Eurozone flags beside called on Greeks to reject Europe's

bailout terms in a referendum set for Sunday.

But that came just hours after he sent a letter to European creditors mostly accepting those very same conditions. So where does he stand? The

German Chancellor, Angela Merkel, says there will be no more talks until after Sunday's vote.

A view of the Eurogroup of finance ministers agreed with in a conference call late today. Mrs. Merkel made it clear. There is only so far Greece

can push its demands. Listen.


ANGELA MERKEL, CHANCELLOR OF GERMANY (through translator): A good (ph) European is not one who wants an agreement at any price.


GORANI: Despite all the uncertainty in Europe, markets in the U.S. are feeling pretty optimistic. The Dow and the NASDAQ popped at the open.

CNNs Maggie Lake joins me now live from New York.

So, Maggie, this is the second we're seeing U.S. markets shrug off what's going on in Greece. What's going on?

MAGGIE LAKE, CNN HOST, "WORLD BUSINESS TODAY": That's right. And - and, Hala, what's going on is the market's telling us clearly that they don't

believe there is any financial contagion. But they're not terribly optimistic or terribly pleased about what's going on.

The day started that way - with optimism. And, in fact, you saw the rally - the numbers up a hundred sixty some points. It was stronger than you're

seeing right now - when we saw Tsipras say, all right, I'm gonna accept these conditions. But that quickly turned to confusion once again.

But you didn't see a sell-off as a result. And that's because investors (INAUDIBLE) keep telling us, listen, this - there is no financial contagion

like we saw back in 2008. This is largely a European issue - and really a political issue. They see a much more risk on the political sphere than

they do on the economic sphere.

So they're sitting back paying attention to the fact that we had jobs data out in the U.S. today which looked pretty good for the private sector. We

have an important payroll number tomorrow which is gonna be critical. They're paying attention to issues like Puerto Rico and China.

So they're not ignoring Greece. They're watching it. They're nervous about it. They're just not trading or selling off on it yet. It seems

that they're taking to the sidelines and waiting for that all-important referendum which we know is going forward on the weekend.

They are waiting as are, as you just said, the European counterparts and leaders saying, we're not gonna talk until after that. So it looks like

we're in a wait-and-see mode right now for investors.

GORANI: But does it seem like a more realistic outcome that Greece would exit the Euro now than it did just a few days ago? I mean what's the talk

among investors right now?

LAKE: You know, Hala, they are utterly confused, I think, given the - the swings we've seen coming from government officials. I think they would

like to believe that we will see a yes now that Greeks are - are experiencing this sort of pain.

The banks are closed. They're very worried about whether there'll be supplies on the shelves, whether businesses can function. That - that

perhaps will sort of put a jolt through society and that they will vote yes to stay in the Eurozone.

Here's the problem. Everyone in the markets believes that this referendum is going to be, yes, I wanna stay part of the Eurozone - no, I want to

leave. And - and European leaders have sort of phrased in that way.

But Tsipras, the Syriza (ph) government and Varoufakis, who posted a blog this afternoon, have said, if you will - if you vote no, you will be voting

to stay in the Eurozone but try to negotiate a better deal. And that is not how the markets view this at all.

So I am concerned that you have this rift between what the market expectations are and the way that the Syriza (ph) government is putting

this to the Greek people. When they go, what do they think that they are voting on?

That's something we're gonna have to watch really closely. But the market has made no doubt about it. If they vote no on Sunday, the market will

view that as next to a given that there will be a Grexit on that result. So the next few days incredibly critical here, Hala.

GORANI: Maggie Lake, thanks very much. I'll know you'll be covering it. The key players in the crisis are talking to CNNs Richard Quest, who's just

spoken with Christine Lagarde, the managing director of the IMF. That interview is coming next hour starting at the top of the hour on CNN.

Now, the U.S. Secretary of State, John Kerry, says talks on Iran's nuclear program are facing some tough challenges but are "making progress."

Negotiators now have given themselves until July 7th to reach a deal.

Meantime, the director general of the IAEA, the International Atomic Energy Agency, is heading to Iran on Thursday to meet with the Iranian President,

Hassan Rouhani. So things are advancing. Visits are happening. Trips are taking place.

While the negotiations continue for another week in Vienna, in Iran the effects of these economic sanctions are being keenly felt, and have been

for years. CNNs Fred Pleitgen visited a factory there where the owners are hoping that a deal will help their business finally prosper.


FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: The company is called Modern Technic, but the place looks and sounds like a factory from

the time of the industrial revolution. Owner, Ahmd Hashemi, tells me the international sanctions against Iran make it difficult to keep production


AHMED HASHEMI, OWNER, MODERN TECHNIC (through translator): Unfortunately, we can't buy the newest machines, he says. So we had to buy old machines

from countries that were phasing things out. We fixed them up and are using them.

PLEITGEN: The factory makes springs and clutches for Iran's auto industry. This is quality control, using the most rudimentary tools. Most of the

equipment here is several decades' old.

This machine was built in the Soviet Union about 30 years ago. And even the company that makes this machine has told the Iranians they can't give

them anymore spare parts because of the sanctions. But now they're hoping it doesn't break down and try to make smaller parts themselves.

As the negotiations over the Iran's nuclear program drag on, the pace of possible sanctions relief remains a major sticking point. While many

Iranians want a deal, Iran will (ph) walk away and continue to live with sanctions if its key demands are not met, says Professor Mohammed Marandi

of Tehran University.

MOHAMMED MARANDI, PROFESSOR, TEHRAN UNIVERSITY (through translator): What Iran wants is an agreement that's fair - that respects Iran's sovereignty -

that respects Iran's dignity. But, at the same time, the Iranians are willing give and take.

PLEITGEN: Back at the car plant outside Tehran, owner Ahmed Hashemi says, sanctions relief would be a major boost for him.

HASHEMI (through translator): We need access new technology, he says. If they lift the sanctions and we can get new technology, then we can be up to

international standards very quickly.

PLEITGEN: For now, the work and the decades' old machines grind on.

Fred Pleitgen, CNN, Karmand (ph), Iran


GORANI: Well, the eyes of the world are on those nuclear talks in Iran. And now more so - I should say none more so than Israel, which has been

vociferous in its condemnation of a potential deal. CNNs Oren Liebermann spoke with former Israeli President, Shimon Peres, about the latest



SHIMON PERES, FORMER PRESIDENT OF ISRAEL: And I think now it's about the nature of verification - of inspection - to make sure that what they have

promised - and people are skeptical about their promises - we will really be accepted by them fully?

I don't think that the president will compromise on it. I think the president keeps his words to these very days that Iran should not become a

nuclear country. And that's the essence of the negotiations. And their options are open. But he wants the nature of it to have a negotiations

without blood.


GORANI: This is THE WORLD RIGHT NOW. Coming up - after a shocking attack killed dozens of tourists on a Tunisian beach, many survivors are calling

the hotel staff heroes. One man's incredible story, after the break.


[15:46:20] GORANI: Let's return now to that massacre of tourists on a beach in Tunisia. British authorities now say 29 Britains were among the

38 people who were killed in Friday's attack. And, while many tourists were fleeing for their lives, some Tunisian resort staff heroically tried

to stop the shooting.

Our Nima Elbagir spoke to one man who witnessed the horror and tried to help - a warning that this report contains disturbing images.


ABDUL ALI LADHARI, TUNISIAN RESORT WORKER (through translator): We went and covered up the tourists that died - God rest their souls - and waited

terrified in complete chaos.

NIMA ELBAGIR, CNN SENIOR INTERNATIONAL CORRESPONDENT: These are pictures that Ali Ladhari took as he and his friends waited for police to come.

They tried, he says, to give the victims back their dignity - to shield them as best they could.

ALI LADHARI: He said that he have a gun help us.

ELBAGIR: This was the first shot (ph) that Ladhari said he had. He watched as the woman fell to the ground. Ladhari works at a beach shack

renting jet skis and parachute rides to tourists. (INAUDIBLE) says that Seifeddine Rezgui (ph) opened fire on the beach had been like any other

until, of course, it wasn't.

ALI LADHARI (through translator): When we men ran towards him, he said I don't have any issue with Arabs. My targets are the Europeans. We're just


ELBAGIR: So, when you heard this, I asked, did you keep coming?

ALI LADHARI (through translator): We moved quicker. We couldn't leave him. Yes, we were scared - terrified. But we couldn't back off.

ELBAGIR: Many of the European tourists caught in the chaos that day have spoken about the bravery of local Tunisians. In this amateur footage, you

can hear the cameraman and others rushing against all instinct towards the shooter - desperate to stop the rampage. But, of course, they couldn't.

Ladhari says for many of the victims that day all he could do was keep them company in their last moments. One British grandfather died in his arms.

ALI LADHARI: He asked me, is my wife dead? I checked her pulse. I said yes, she is. He did this - thank you, God, and cried and died. I can't

say anything more. He thanked that she hadn't suffered. Like that. Thank you, God. Thank you, God, and pray and death.

ELBAGIR: He shows where the killer jammed the bottom of the machine gun. As Ladhari says, he tried to protect them. As he lay on the ground, he

tells us he watched as a little boy was shot at point-blank range. The shock - the horror.

Speaking to Ladhari, you can see it hasn't left him. I asked if he ever found out the name of the British man who died in his arms. No.

As people around the world struggle to understand why, Ladhari says he wishes he had answers.

ALI LADHARI (through translator): He killed them. He destroyed them, and he destroyed us with them.

ELBAGIR: Nima Elbagir, CNN, Sousse.


GORANI: As Tunisia's tourism industry takes an inevitable hit after this attack - in fact, from our Nick Paton Walsh, I understand only six British

tourists are left in that resort. Many, though, among them are expressing concern about that might mean for heroic resort workers like the one you

just saw there in Nima's piece.

Joining me now from Sousse, Tunisia, is Nathan Priestly. He's, in fact, started a fund to support the hotel staffers who came to the aid of

tourists during the massacre. Nathan Priestly, thanks for being with us. You set up a gofundme page - staff of Tunisia. Why did you

feel the need to do that?

NATHAN PRIESTLY, TUNISIA FUNDRAISER: I felt the need to start the fundraising page because I kind of felt like the staff won't gain as much

coverage as what they should have done and during the events of what happened on Friday's attacks.

And I've heard stories from the guests that were here at the time of one of the staff members was actually running out at the time the gunman was still

active. And he was covering their bodies just so the fleeing children couldn't see him (ph). And the cleaners were barricaded (INAUDIBLE) and

guests in the hotel rooms trying to keep everybody safe.

And I just wanted to kind of raise a little bit more awareness because they've been incredibly heroic and there's just as traumatized as we the

guests are as well.

GORANI: Are they aware that you're doing this?

PRIESTLY: I think a few of them know at the moment. But I'm kind of keeping it to a surprise. I'm leaving tomorrow, and I'm hoping, before I

go tomorrow, (INAUDIBLE) to the management and all the proceeds are gonna go to the staff equally that were working that day. So -

GORANI: Well, in terms of keeping it a secret, I think that the cat's kind of out of the bag here with your being on television and talking about it,

but it's an extremely generous initiative. How much have you been able to raise?

PRIESTLY: I think the last time I checked, we raised 2,000 pounds so far. And, so, any little donation really does go a long way out here. You know,

the staff rely on tourism and rely on the guests here. And obviously, with the attacks that happened, the majority of the guests have left. And I

just wanted to start this fundraising page to help them help and to show their heroism during this time of the devastating attack.

GORANI: We've heard many stories of heroism from the hotel staff running toward the gunman. We actually say it in our reporter's piece right before

coming to you. But I've gotta ask you - and I think people at home are watching this will have the same question - why did you not leave after

this happened? Why are you still there?

PRIESTLY: Well, we wanted to - we weren't here at the actual time of the attack. We were out on a trip, and we kind of wanted to give up our flight

seats to those that were part of the attack and wanted to leave. And we felt that was the right thing - and just seeing how the hotel's staff was

trying to cope with the situation there - incredibly traumatized as well.

So I kind of just wanted to be there to support them. And just because everyone else had rightfully left the hotel, I just wanted to stay put and

support the people that helped save many lives that day.

GORANI: Well, Nathan Priestly, I just wanna put up again the address for the gofundme page, which is And, Nathan, if

you could stay in touch with us and then tomorrow, when I guess - this is when the donation period ends - you could tell us how much you raised. And

could you please also report back to us the reaction of the hotel staff when they find out that you raised this money for them?

PRIESTLY: Yes, I definitely will do that. Thank you so much for talking to me today. And it really does mean a lot. Thank you.

GORANI: Thank you, Nathan Priestly. We'll be right back.


[15:52:27] GORANI: With temperatures about 40 degrees Celsius in some places, a heat wave is baking western Europe. Officials in Spain are

warning residents to stay hydrated. They're also keeping nervous (ph) sight out for the possibility of forest fires.

If you have a fan, you know, you can try to cool down with that. Check out these images from London - London, England. The mercury hit just short of

37 degrees Celsius at Heathrow Airport - the hottest July day on record. And the question is going to be will it cool down a little bit?

Tom Sater joins me now with a look at the weather. And, Tom, it's not just when you're outside that it's hot. It's mainly when you're actually in the

tube - subway in London. Yes. It's the temperature. It's the odors. It's a whole package.

TOM SATER, METEOROLOGIST AND WEATHER ANCHOR, CNN INTERNATIONAL: Yes. And the pollution. London's on a high-ozone pollution alert - ironically the

same day Heathrow, you know, makes an announcement to expand (INAUDIBLE) third runway.

But it's gonna continue for a while. You're gonna get a break there in most of the U.K. But a good part of Europe will not. Let's talk about

Wimbledon first. The old record for the hottest day - 1976 was 34.6 degrees - surpassed today - that's right at 35.7 - hottest day. And it's

much hotter on the turf. I mean, considered well into the 40s, there's no air flow.

Back on Monday, when the temperatures were only in the mid-20s, about a hundred people were treated for, of course, the heat. It's gonna remain

pretty hot on the center court, of course. But again, hey it's the same for the both, right, on these sides of the net?

But here's the forecast. We'll start with Wimbledon as well. There is gonna be a break. It's gonna stay warmer than it should be. And, if you

have troubles in the mid-20s, you get a little bit of a break. But you're gonna stay warmer than it should be with very little chance of rain, if


Here are the current temperatures. Madrid gets a break, but the heat will rebuild for a second time. It moves up to Paris. They're at 33 now. You

hit the second hottest temperature in the history - not just for July. Your records go back to 1873, and they topped out at 39.7. That's right -


Look at some of these numbers here. So here it is well above average of 23. London's average is 22 - hottest July day. Brussels, Frankfurt,

Amsterdam. They were 12 degrees warmer than average as well.

This was earlier in the day. I love this picture at 38. Now, again, 39.7. For those that follow the Fahrenheit scale, that's 103 degrees. So these

records going back to 1873 - so it's amazing.

Temperatures stay above average. Average high in Paris is 23. Look at the heat. This is gonna get a little dangerous. Now I know it's the hottest

that we've been in some time. But when the body is not acclimated to this, you know, body heats up. The brain activity slows down because (INAUDIBLE)

sets in.

Now you're still gonna remain a little bit above average in London but closer to average. And, as it spreads, we're gonna watch a second round.

Madrid, get ready for temperatures well in to the 40s for the next seven days.

But you can see for tomorrow - here's a quick look at it. Hala, just hang in there. It's gonna get a little better for you, but for many countries,

it's gonna remain for about 10 days. So not much relief in sight for a good part of Europe.

GORANI: I tried for most of the day not to complain about the heat in London, because it's never a problem we have to deal with. So, for once,

it's not raining. It's not cold. It's not bad.

SATER: That's right.

GORANI: Then, after a while, you're just - no, it is suffocating.


GORANI: It's not a city designed to deal with 37 degrees Celsius weather.

SATER: Slow down. Pace yourself.

GORANI: That's right - for hydrating. Thanks very much.

Before we leave you tonight, we wanna tell you about a loss. World War II, of course, claimed the lives of millions of victims under horrific

circumstances. But the bravery of a few was able to make a difference in diminishing the horror just a little bit.

Among them Nicholas Winton, known as the British Schindler. Now he passed away only today. He was 106 years old. He saved the lives of 669

children. A reluctant hero - in 2014 the Czech Republic awarded them with their highest honor - the Order of the White Lion. Still Winton reflected

on his achievement with typical modesty.


NICHOLAS WINTON, KNOWN AS THE BRITISH SCHINDLER: Well, of course, this is wrong to say I was saving children's lives. I mean there was no war on.

There might not have been a war. You know, it was all very speculative at the time. It's easier to say now saving lives because we know what

happened subsequently. But we didn't know at the time.


GORANI: Sir Nicholas Winton, rest in peace. This has been THE WORLD RIGHT NOW. Thanks for watching. I'm Hala Gorani. "Quest Means Business" is