Return to Transcripts main page
Early Start with John Berman and Zoraida Sambolin
New York Prison Escape Details Revealed; New Fallout for Donald Trump; 4th of July Terror Threats: Security Boosted; ISIS Attacks Military Sites in Egypt; Dozens Down As Philippine Ferry Sinks; Feds Probe Possible Airline Price Fixing; Heartbreak of a Nation. Aired 5- 5:30a ET
Aired July 02, 2015 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[05:00:00] CHRISTINE ROMANS, CNN ANCHOR: In some cases, these schools -- these programs have been preying on veterans. Programs that don't meet the requirements are forced to make changes fast or shutdown. he says there's room for the good actors. The bad actors are going to go out of business.
JOHN BERMAN, CNN ANCHOR: The message.
EARLY START continues right now.
(MUSIC)
BERMAN: Big changes coming to the New York prison where two killers broke free. The captured convict sharing new details of the escape, including just how involved an arrested seamstress was in the whole plan. Did she want her husband dead?
ROMANS: New fallout for Donald Trump. The comments costing him more business. What Trump had to say in an illuminating CNN interview overnight? We've got that for you, ahead.
BERMAN: Illuminating is euphemistic.
Cities across the country boosting security. New concerns over the Fourth of July holiday and possible terror threats. We will bring you the new developments there.
Good morning, everyone. Welcome to EARLY START. I'm John Berman.
ROMANS: I'm Christine Romans. It's Thursday, July 2nd, it's 5:00 a.m. in the East. Nice to see you all this morning.
This morning, self-proclaimed escape mastermind David Sweat, he's revealing new details about this time on the lam with the other escapee from Clinton correctional in upstate New York, Richard Matt. A law enforcement official tells CNN Sweat is saying that partnership with Matt went bad quickly. Sweat says the older inmate was out of shape, slowing them down and Matt started getting drunk after they broke into a cabin. Frustrated, Sweat said they split up. Officers shot matt to death five days later noting they could smell alcohol on his body from several feet away.
The latest on the investigation, CNN's Kyung Lah is in Albany, New York.
(BEGIN VIDEOTAPE)
KYUNG LAH, CNN CORRESPONDENT: Good morning, John and Christine.
Investigators say they have completed their interview of David Sweat, at least for now. But he has been talking to them from his hospital bed and he has been saying a lot. First and foremost, certainly, leading investigators to understand that it was a lot easier to break out of this correctional facility than anyone could have imagined. Sweat detailing to investigators that he and his accomplice used hacksaws, manual hacksaws to get out of their jail cells, to cut into some of the piping, that they were able to slip in and out of their cells at whim.
They made it to an underground passage way and they found a sledgehammer, that was apparently left behind by a construction worker. They used that hammer to get further out. They were able to do a dry run, first getting into one manhole. Rejecting that manhole thinking it was too close to some houses. The next day, making their real run into a manhole -- popping out of a manhole that was less populated.
Also, Sweat detailed that he was the mastermind, it was Joyce Mitchell who had the idea of killing her husband. Mitchell's attorney saying that that simply is not true.
Mitchell did not pick up the men so they tried to flee on foot to Canada, as we know. Sweat telling authorities that while he was on the run, he had a number of close calls, one where he was hiding in a tree as an officer walked right by him. He remains in the hospital this morning. He is under heavy guard from what the hospital tells us and he remains in fair condition -- John, Christine.
(END VIDEOTAPE)
ROMANS: So many interesting developments. Thanks for that, Kyung.
More big changes are underway at the prison. Clinton correctional has a new superintendent this morning, Michael Kirkpatrick, after the superintendent and two deputies in charge during the escape were put on paid leave, along with nine security officers. Other changes include much more frequent checks of cells and catwalks, and the elimination of the prison's honor block.
BERMAN: All right. A new business setback for Donald Trump, the presidential candidate. Yes, NBC broke up with him because he painted Mexican immigrants as killers and rapists in his campaign announcement. Now, Macy's, which is a major outlet for Trump's clothing and fragrances, is following suit. They dumped Trump, although Donald Trump says he dumped them.
CNN's Athena Jones has latest. (BEGIN VIDEOTAPE)
ATHENA JONES, CNN REPORTER: Good morning, John and Christine.
There is more bad news on the business front for Donald Trump. Macy's has announced it's ending its partnership with the billionaire businessman, after mounting pressure, including an online petition by MoveOn.org that urged the company to dump Trump. That petition got more than 700,000 signatures.
The company is taking his merchandise off the shelves, saying his disparaging remarks about Michigan immigrants are inconsistent with Macy's values. Trump says he's the one who ended the relationship because he has, quote, "never been happy about the fact that the ties and shirts are made in China."
This is just the latest company that cut ties with Trump after Univision and NBC Universal ended their business relationship with the real estate mogul following those inflammatory comments.
Here's what Trump had to say about this controversy on "CNN TONIGHT" last night.
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: They fold under pressure. That's the problem with our country. Everybody folds under pressure.
[05:05:00] Macy's was unable to handle pressure. They folded like dogs.
JONES: So, there you have it. Donald Trump is still not backing down.
And given the history, this is not the last we are hearing of the story yet -- John, Christine.
(END VIDEOTAPE)
BERMAN: Athena Jones, not the last we're hearing as well. So, first of all, folded like dogs, that's a mixed metaphor. But he had more fascinating and I use that word euphemistically things to say in the interview with Don Lemon. Don was pressing him on his claims about Mexican immigrants. Donald Trump was citing reports that Trump pretends to show that there rapists coming into the United States, but Don really pressed him on that. Let's listen.
(BEGIN VIDEO CLIP)
TRUMP (via telephone): Don, all you have to do is go to "Fusion" and pick up the stories on rape and it's unbelievable when you look at what's going on. All I'm doing is telling the truth.
DON LEMON, CNN ANCHOR: I read "The Washington Post" and "Fusion" and that is about women being raped. It is not criminals coming across the border.
TRUMP: Somebody is doing the raping, Don. You know, somebody is doing it. Just saying women being raped. Well, who's doing the raping?
(END VIDEO CLIP)
BERMAN: Donald Trump saying who is doing the raping. The reports from "Fusion" talk about people coming to the United States. Women raped along the way by coyotes and government officials in Mexico and other Latin American nations as a price to get to the United States.
So, Donald Trump seems to be interpreting that article in an interesting way.
There is new trouble this morning for Trump's Miss USA pageant. The rapper Flo Rida has announced he is bowing out. He was the last scheduled performer on the bill after Craig Wayne Boyd, Natalie La Rose, and J. Balvin all dropped out as well. Retired running back Emmitt Smith quit as judge. One of the five celebrities originally listed in that show.
NBC and Univision have already pulled the plug on the telecast. But officials say the Miss USA pageant will go on as scheduled and streamed online, July 12th.
ROMANS: All right. Turning to the Fourth of July holiday and increased threat on the attack of the American soil. The FBI and Department of Homeland Security and National Counterterrorism Center all say the threat much higher this Independence Day than last because of ISIS, and the group's aggressive use of social media. Officials fear Islamic State supporters could be inspired by the terrorists' call for attacks during the Islamic holy month of Ramadan.
Major cities like New York deploying radiation detectors and other resources in the waterways and in the air. Thousands of security cameras are already in place to help authorities patrol the streets.
(BEGIN VIDEO CLIP)
JOHN MILLER, DEPUTY COMMISSIONER, NYPD: This may be potentially the most complex counterterrorism overlay for this event ever. I think you saw a couple of days ago, we had three coordinated attacks overseas in France and Kuwait and in Tunisia. So, given the world situation, we wanted to put those layers of protection behind the regular patrol piece.
(END VIDEO CLIP)
BERMAN: In Egypt, a dramatic attack by ISIS. Militants hit five Egyptian military checkpoints with simultaneous attack, at least 17 soldiers were killed, dozens more injured. In the latest attack, this comes two days after the Egypt top prosecutor was assassinated on the streets of Cairo. There are new concerns over the terror group's expanding reach.
CNN's Jomana Karadsheh covering that for us.
Good morning, Jomana.
JOMANA KARADSHEH, CNN CORRESPONDENT: Good morning, John.
Security officials in Egypt are describing this attack that unfolded in the Sinai as unprecedented. Something this region has not seen. Some describing it like some accounts like nothing they have seen since the 1970s wars that took place between the Arabs and Israel in that region.
Now, according to the Egyptian military, officials say more than 300 militants were involved in the coordinated attack. They say they used car bombs and medium and heavy weapons, attacking several checkpoints in that area. Now, ISIS' affiliate, State of Sinai, in an online statement, claimed responsibility for this assault saying they attacked 15 military checkpoints and they used three suicide bombers. The attack and this assault focused on the town of Sheikh Zuwaid, that's close to the Gaza border, and residents in that area describing it as a battle zone.
What happened yesterday, they say that people were unable to leave their homes. They were caught in the crossfire between the military and these militants and the roads were blocked by land mines for hours. The military could not send in reinforcements. Ambulances could not reach the area. Very dramatic situation there.
The Egyptian military says that it called in the air force and some air strikes took place in that area and overnight, the Egyptian military saying they managed to take full control of that area killing at least 100 militants.
[05:10:06] They say 17 security forces killed as you mentioned. The death toll could rise.
But a lot of concern, John, is this a new phase in the Islamist militancy that the Egyptian government has been struggling to contain in the Sinai region. A lot of concern with ISIS reach expanding, in that area, too.
BERMAN: A lot of concern that the region is slipping out of control. Jomana Karadsheh for us -- thanks so much.
ROMANS: All right. We have breaking news this morning. A rescue operation underway in the Philippines where a ferry has just capsized. Coast guard officials say the boat was carrying 173 people when it sank off the port of Ormoc City. It's off the island of Leyte.
Red Cross officials say at least 36 people have drowned so far. But according to officials, more than 100 rescued.
I want to bring in CNN's Kathy Novak live for us.
And, Kathy, officials saying this accident happened, this disaster happened just really off the shore. People could see the ship capsize.
KATHY NOVAK, CNN CORRESPONDENT: That's right, Christine. We are starting to get pictures in of the scene, frantic rescue on the ground of trying to find the people who are still missing. There are about 20 people, we are told, unaccounted for. As you mentioned, about 36 people dead that we know of, heartbreaking for any of the loved ones standing on the shore, because you can see the vessel with the naked eye from where the rescue operation is going on.
The concern in the Philippines is it starting to get darker, and there is a desperate rescue effort ongoing. They want to send in navy divers but we understand they haven't been able to arrive on the scene yet. They are doing everything they can to still try to find these about 20 people who remain missing.
We are told by Red Cross officials that the conditions were difficult for boats and the water was choppy, there were high winds and low visibility. That is making the rescue effort more difficult. So, the Red Cross officials and coast guard on the ground. The Red Cross bringing rescue workers, but also, unfortunately, Christine, bringing body bags as well.
ROMANS: Just frantic, some of the pictures. Kathy, thank you.
You saw a picture of a baby carried off, just tells you, what a chaotic scene.
BERMAN: Ongoing, too, we keep you posted on that.
All right. This question, major U.S. airlines, are they conspiring to keep the ticket prices high? The Justice Department now investigating. We have details on possible price fixing. That's next.
(COMMERCIAL BREAK)
ROMANS: Fifteen minutes past the hour.
Development this morning, several airlines promising they will comply with the federal subpoena. The Justice Department says it's looking into unlawful coordination to limit seat capacity, limit the number of seats to keep ticket prices high. The subpoena is rattling the stock market. Airline stocks tanked yesterday.
Look at these -- shares of American down almost 3 percent. Delta, United Continental, Southwest and JetBlue, all them got hurt.
For the latest on the federal probe, let's go to CNN's Rene Marsh in Washington.
(BEGIN VIDEOTAPE)
RENE MARSH, CNN AVIATION & GOVERNMENT REGULATION CORRESPONDENT: Well, we can confirm United, American and Southwest Airlines have all received demand letters from the Department of Justice. The feds are asking several major airlines for documents and communications that could prove they worked together to manipulate capacity of flights.
In other words, limit available seats and keeping planes full and ticket prices high for consumers. Now, consumer advocates have been suspect of the major airlines because they say multiple airline mergers means less competition and higher prices for consumers.
Right now, four major airlines control 80 percent of the market. But specifically, what sparked this federal investigation was a letter from Connecticut Senator Richard Blumenthal. He asked DOJ to investigate after learning about public comments airline executives made at an industry conference. In one instance, Blumenthal says Southwest Airlines CEO announced plans to expand capacity for flights which many in the industry believed air fare cuts were next.
Southwest CEO came under fire from others in the industry and had to quickly reassure investors the airline wasn't going rogue. The senator saying that was just one example that suggested industry collaboration.
Now, the airlines we have heard from all say they plan to cooperate with the investigation, but the allegation alone is a bitter pill for passengers. The four major carriers saved billions combined on fuel. They made millions and millions on baggage fees, and yet prices for consumers, it remains high.
Reporting in Washington, Rene Marsh, CNN.
(END VIDEOTAPE)
ROMANS: All right, Rene. Thank you for that.
A man in his 60s attacked by a shark on North Carolina. It happened Wednesday, in the outer banks. The victim said he was attacked by a gray shark at least seven-feet in length, pulled underwater, he says he sustained bites to his rib cage and hip, lower leg and both hands. The Carolinas have experienced an average of six shark attacks every year. So far this year, the region has had ten.
BERMAN: Severe weather in the Midwest. Look at that. The suspected tornado hit Kansas City Wednesday night. The funnel cloud along the Kansas and Missouri border. The air was heavy with a cloud of debris in the area. You can see that flying around right there.
On the ground, the damage also visible, trees snapped in half. The storm knocked out power to 150,000 homes and businesses.
All right. Brace yourselves, England. Own goal. No, no, no! England losing the World Cup, beating themselves. Japan goes to the finals because England scored on itself. Oh, not a good day to be English.
Andy Scholes has the bleacher report, next.
(COMMERCIAL BREAK)
[05:23:07] BERMAN: You know, it's never easy being British. And this morning, it is harder. The women's national team was minutes away from possibly making it to the first World Cup final, oh, man, the unthinkable happened.
ROMANS: Andy Scholes has more in this morning's bleacher report. Hey, Andy.
ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Yes, good morning, guys.
You know, this was one of the most epic fail in women's World Cup history. England and Japan tied at 1-1 into stoppage time. Japan on the attack and Laura Bassett attempting to clear the ball for England, but ends up kicking it to her own goal. That happened in the 92nd minute. Seconds later, the whistle blue. England left devastated as the world cup dreams come to an end.
(BEGIN VIDEO CLIP)
MARK SAMPSON, HEAD COACH, ENGLAND: Of course, every single member of my group is devastated when that ball went over the line. We're devastated. Laura is one of us. We can console her. We have to cry and we tell how proud we are of her.
(END VIDEO CLIP)
SCHOLES: Team USA arriving in Vancouver yesterday as they prepare for Sunday's final. U.S. getting a shot to avenge the heart breaking loss after the 2011 finals. They lost that game in penalty kicks. Sunday's final kicks off at 7:00 Eastern. The U.S. could become the first team ever to win three women's World Cup titles.
The Washington Redskins want to build a new stadium in Washington, D.C., they have to change their name. That's what the Interior Secretary Sally Jewell is saying. The potential land next to the old RFK stadium where the team would build a new facility, is controlled by the National Park Service and Jewell said they are unlikely to accommodate construction of a new stadium for the Redskins unless the team changes its name.
All right. We are more than 24 hours into free agency for the NBA now. And this has been the absolute crazies first day of free agency every.
[05:25:02] Teams are handing out massive deals left and right. The biggest deal is Kevin Love re-signing for the Cavs $110 million. But Cleveland was just getting started. They then re-signed Tristan Thompson for five years Shumpert for four years for $40 million. They have to give LeBron a deal as well. After all of the contracts, it comes out to more than $1 billion.
And, guys, it's a new world in the NBA with the massive TV deals kicking in over the next two years. I mean, teams are spending money like crazy. It's unreal.
BERMAN: Some of the deals sound ridiculous, but, Andy, they could be a bargain after the new TV deal. Kevin Love could be cheap-ish at five years, $110 million?
SCHOLES: I guarantee you, neither of you have never watched Chris Middleton play in the NBA. He just got a $70 million contract.
BERMAN: All right. Andy Scholes, thanks so much.
ROMANS: Twenty-six minutes past the hour.
Did a prison seamstress help two killers break free so they could kill her husband? Wow, what the captured convict is sharing, the few details sharing, next.
(COMMERCIAL BREAK)
ROMANS: Big changes coming for a New York prison where two killers broke free as a captured killer shares new details on the role that prison seamstress had in the escape.
BERMAN: New fallout for Donald Trump. Macy's dumps them or he dumps them, if you believe him. This all over the remarks in an announcement speech when he called Mexican immigrants rapists.
