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Early Start with John Berman and Zoraida Sambolin

Macy's Dumps Trump; New Revelations from David Sweat. Aired 5:30-6:00a ET.

Aired July 02, 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 CORRESPONDENT: The escape.

JOHN BERMAN, CNN ANCHOR: New fallout for Donald Trump. Macy's dumps them or he dumps them. This all over the remarks when he called Mexican immigrants rapists. Well, overnight Donald Trump firing back on a CNN inter interview. You got to hear it to believe.

ROMANS: Really interesting stuff. Welcome back to "Early Start." I'm Christine Romans.

BERMAN: I'm John Berman. 30 minutes pass the hour right now. New revelations flowing in this morning from David Sweat that could be key in understanding how he escaped from a maximum security prison and how he stayed free for so long.

The law enforcement source reports that the captured convict now not only says he was the mastermind behind the prison breakout of Clinton Correctional, but his partner Richard Matt, weighed him down from the start. Sweat says, the older inmate was out of shape, that Matt started to getting drunk after they broke into a cabin. Sweat was so frustrated, he says, they split up. Officers then shot Richard Matt, Richard Matt to death five days later noting they could smell alcohol on his body from several feet away.

Let's get the latest on the investigation. CNN's Kyung Lah is in Albany.

KYUNG LAH, CNN CORRESPONDENT: Well, good morning, John and Christine. And 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 ever 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 it's there that they found a sledgehammer, that was apparently left behind by a construction worker. They used that sledgehammer 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 the manhole that was less populated. Also, Sweat detailed that while he was the mastermind, it was Joyce Mitchell who had the idea of killing her husband. Mitchell's attorney saying that that's simply not true. Mitchell certainly did not show up to pick these two 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?

BERMAN: All right. Thanks, Kyung Lah for that. New big changes underway at the prison itself. Clinton Correctional has a new superintendent this morning, Michael Kirkpatrick, after the superintendent and two deputies in charged during the escape were put on paid leave along with nine security staffers. Other changes including much more frequent checks of cells and catwalks. But they also suggests perhaps much more thorough check of cells. They are also going to eliminate the prison's honor block.

ROMANS: All right. Another business setback, a new business setback for Donald Trump. The combative presidential candidate has already been fired by NBC for painting Mexican immigrants as quote, killers and rapists in his campaign announcement. Now Macy's is pulling Trump's clothing and fragrances from store shelves.

DONALD TRUMP, PRESIDENTIAL CANDIDATE: They fold under pressure. That's the problem with our country everybody folds under pressure. Macy's was unable to handle the pressure. They folded like dogs

ROMANS: Macy's says that this, his statements - drives his statements are - don't mesh with their corporate culture and image. So that's why they fired him.

BERMAN: Yes. But they say, he dumped them. The truth is out there now. Now, let's break all of this down. Joining us CNN Senior Media Correspondent, host of CNN's Reliable Sources, Brian Stelter. Brian, thanks so much for being with us.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: So the truth is out there somewhere else.

BERMAN: The truth is out there somewhere else. And look you are just one looking for. You were in New Hampshire at a Trump rally. You know, Trump, getting hit by a lot of places for these comments, getting dumped by Macy's, getting dumped by Univision and NBC -

STELTER: Right. Right.

BERMAN: - by his comment he made during his announcement speech. But you went to a Trump rally, how is he and what he is saying being received by actual real life voters?

STELTER: Well, some of the biggest applause lines are about these issues, about NBC, about Univision. Him critiquing the media generally gets some of the biggest applause. And yet of course, it is the media that gives him so much oxygen. The press pack was there in force. This is the last event scheduled before the July 4th weekend in New Hampshire. It is where he spoke about Miss USA also saying that NBC and Univision had abandoned the pageant contestants. But that he will be there by them.

And then this Macy's development yesterday, another opportunity for him to try to look strong, try to make them look weak. Even though in reality, it was Macy's that dumps Trump, decides not to be business with him. This is our only presidential candidate who had his on fragrance. Success by Trump. So no longer really have that. Macy's is getting out of Trump's business. It is an example of corporate America taking a stand on a speech issue.

[05:35:00] But for Trump, it obviously is something that, that, that he, he is able to take and try to use to his advantage. You know, Rich Loury said really well politically, he said, there's fewer things that benefit Republicans better right now in this current environment than getting fired and boycotted for something they said because it creates a culture for a moment.

ROMANS: But he, he is also been able to use these - what, what looks like setbacks and use them to his advantage. For example, immediately pivoting to the issue of, of Chinese currency manipulation. And how he as president of the United States is going to put his self to that even though he had been benefiting from that up until this very moment you know, by having his products made in China.

STELTER: Well, there is electricity when he talks about these, these somewhat even mundane or complicated issues -

ROMANS: Right.

STELTER: - in front of crowds. It is because he has that celebrity power, that star power, that many other candidates frankly don't have. So you know, commentators I think in some - to some degree have focused on the outside and maybe this campaign is not as legitimate as others. Maybe that he is something of a comic. But he has that celebrity power that's really important in this current culture.

ROMANS: Well, he tells it like it is, but tell it like it is, is what Chris Christie's campaign slogan is supposed to be.

BERMAN: Well, it depends on what it is and is, is in this case because Donald Trump says stuff sometimes, and one might suggest, it's not always based on facts.

STELTER: It's one of the fact to check out.

BERMAN: Let's talk about that. Because one of the claims he made is that, rapists are, are coming over the border from Mexico. He was on with Don Lemon last night in an interview that was fascinating. Please go online and watch it. And Don was pressing him on the issue. You know, who were these people you were saying rapist coming over the border. I want to, I want to play this clip right here.

(START VIDEO CLIP)

DONALD TRUMP, PRESIDENTIAL CANDIDATE: But 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 is going on. So all I'm doing is telling the truth.

DON LEMON, CNN ANCHOR: I've read the - I read the Washington Post, I read the Fusion, I read the Huffington Post. And that, that's about women being raped. It's not about criminals coming across the border or entering the country.

TRUMP: Somebody is doing the raping, Don. I mean, you know, what it's - I mean, somebody is doing it. You just say woman being raped, well, who's doing the raping?

(END VIDEO CLIP)

BERMAN: Who's doing the raping. The article that he is citing is saying the people doing the raping are officials overseas in Mexico and other Latin American nations you know, bribing or blackmailing these women trying to come across to coyotes. Doing it that, that's who is doing it in this article. He is citing - he is sort of held Donald Trump to a different standard when it comes to the fact.

STELTER: Yes. It's a rhetorical device for Donald Trump to hold up an article. He literally held some of these articles that is most recent event and hold them up and say that he is in the right, that he is in a clear. But it was pretty clear to me he hadn't read those articles until after he made his offensive comments two weeks ago.

What we've seen in the last two weeks, this domino effect and most recently with Macy's, it shows that companies are choosing the power of Hispanics consumers over Donald Trump.

ROMANS: Yes.

STELTER: And that's really significant. You know, we will probably see more incendiary comments from him. They may helped Trump in the short term. But clearly he is not taking a big financial hit. Even if he is only losing million, it's not billions which, which he is. He is not losing tons of money out of these deals it's clearly taking a reputational hit within the broader country. Even if it may help him in the polls in the short-term.

BERMAN: You know, did the birth certificate thing you know, and that doesn't seem to hire him. Reputationally or at least permanently, so who knows that this will either?

STELTER: Well, yes and no. You know, you know, you get, you get journalists and you get observers at these rallies who is sometimes snickering in the back of the room. Even though he does have fans who are, who are very interested in him what he has to say. They say he loves it - they loved that he is not a politician. That he, that he is actually a businessman. And even Chris Christie cannot quite say that. You know, there is no another candidate in the field right now that can say I'm not a politician I know what's wrong with all these folks.

On the other hand, he is running a, a somewhat strange campaign rhetorically. Make America great again. It implies a lot of problems and negativity. You don't usually hear it from candidates.

ROMANS: Yes.

STELTER: So it's another example of what makes him unique and very different from the rest of the candidates.

BERMAN: Brian Stelter, thank you so much.

STELTER: Thanks.

ROMANS: All right. Securities boosts in cities across the country over terror concerns for the Fourth of July. That story after the break.

[05:40:00] (COMMERCIAL BREAK)

ROMANS: Stern warnings about the Fourth of July holiday and the increase threat of an attack on American soil. The FBI, the Department of Homeland Security, National Counterterrorism Center say the threat level is 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 called for attacks during the Islamic month of Ramadan. Major cities like New York are now deploying radiation detectors in other resources and waterways and in the air. Thousands of security cameras are already in place to help authorities patrol the streets.

JOHN MILLER, DEPUTY COMMISSIONER, NEW YORK: This may be potentially the most complex counterterrorism overlay for this event ever. I think you saw a couple of days ago we had what appeared to be three coordinated attacks overseas in France, in Kuwait and in Tunisia. So given the world situation, we wanted to put those layers of protection behind the regular patrol fee.

ROMANS: All right. To Egypt now. Also facing an increased threat from ISIS. ISIS militants hit five Egyptian military check points with simultaneous attacks. At least 17 soldiers killed. Dozens more injured. This latest attack comes two days after militants assassinated Egypt's top prosecutor on the Cairo street. Now concerns are growing over the terror groups expanding reach. CNN's Jomana Karadsheh live in Oman, Jordan with the very latest. And Jomana, this was coordinated and sophisticated, a new, a new attack by ISIS? JOMANA KARADSHEH, CNN CORRESPONDENT: Christine, a lot of concern

about this latest attack that officials - security officials in Egypt are describing as unprecedented. They say about 300 militants were involved in the assault. And that they attacked several checkpoints, military checkpoints using car bombs and different kinds of heavy and medium weapons.

Now, ISIS has affiliate, the state of Sinai claimed responsibility saying it had attacked 15 military checkpoints. And it said it used three suicide bombers. The battles, there Christine, lasted for hours, turning the area into a battle zone. Civilians were trapped in town there. And finally, after hours of fighting the Egyptian military says, used air strikes, calling in the air force and they had managed to kill at least 100 militants and regain control of the area.

[05:45:00] But as you mentioned, serious concern about this new development in the northern Sinai where the Egyptian authorities have struggled to contain this insurgency for the past couple of years. And a lot of concern, if we are seeing a shift in tactics here. And perhaps a new chapter in this battle against the ISIS affiliate in the region.

Christine?

ROMANS: All right. Jomana Karadsheh, thank you for that, Jomana. Let's take a look at what is coming up on New Day. Alisyn Camerota joins us this morning. Hi Alisyn.

ALISYN CAMEROTA, CNN ANCHOR: Hi, Christine. Great to see you. So we have a lot on the show today. Including new revelations from that prison escapee to tell you about. He is clueing investigators in to where he hid and how close searchers came to finding him.

Also, Donald Trump was on CNN last night with Don Lemon last night. Wait until you hear what he had to say.

Also, we'll have some new polling, it will be hot off the presses at 6:00 A.M. this morning. A lot of surprising coming out. Including how Americans really feel about the confederate flag. So all that and more when "New Day" begins at the top of the hour.

We'll see you then Christine.

ROMANS: All right. See you soon, Alisyn, thank you for that.

Will Greece reach a new bailout deal to keep it in the European union? The country in financial limbo on the brink of chaos. What's next with markets around the world? We're live after the break.

(COMMERCIAL BREAK)

[05:50:00] ROMANS: Greece's debt crisis rattling markets all week. European stocks a bit lower right now. U.S. stocks futures are up slightly. Markets are cautious here hoping Greece and its creditors will figure out a solution. Yesterday, stocks swung wildly on hopes, then doubts that these two sides can come together.

Now negotiations are on hold until after the referendum vote on Sunday. Now, the confusion in the markets, the confusion in all this diplomacy reflecting confusion in general about what's going on in Greece. Just hours after the Greek Prime Minister told European officials he is ready to accept most of the terms, he turned around and urged Greeks to vote no on Sunday's bailout referendum to quote, strengthen his hand he said.

And then when that Sunday vote comes, no one seems to even know exactly what is - the Greeks will be asked or what the consequences of the vote will be. A better bailout or exit from the euro. IMS managing director Christine Lagarde says, the turbulent negotiations need more adult supervision.

CHRISTINE LAGARDE, MANAGING DIRECTOR, IMF: Given the level of uncertainty, confusions and, and constant movement, I, I think, I think a bit more adulthood would, would, would still be needed.

ROMANS: Frustration from the European officials, no question. CNN's Richard Quest is in Athens for us this morning. Richard, this has been really remarkable, the last 48 hours here. And all of the outcomes, it seems on the table, are bad for Greek citizens.

RICHARD QUEST, CNN CORRESPONDENT: And that, I think, Christine, is exactly the point. This is the true dictionary meaning of dilemma. No outcome is good. If the Greeks vote no, then they are looking into the precipice of life without the euro and with harder negotiations. If they vote yes, then any deals that are on the table will have to have more terms because the bank closure and the higher economy has made the situation much worse.

But what we do know is that, there's no talks taking place. The other European partners, Christine, have basically said to the Greeks, fine. Democrats - Democracy rules have your referendum. We are not talking to you until that referendum is over. So, it's a, it's a quiet - it's a, it's a - be like it's a - quite before the storm between now and Sunday.

ROMANS: You know, we always talk about risks and uncertainties. And that's why market participants have been so concerned if Greece falls out of the euro. Richard, what could happen for global contagion and the like? But we've been seeing this coming for, for five years now. Greece has been in big trouble with its debt. For the past couple of years, this is one of those uncertainties that seems pretty certain. I'm sort of surprised how resilient world markets have been, Richard.

QUEST: Well, it's so resilient because they spent the last five years, not just because of Greece, but because of any potential dislocation putting in place policies, structures and robustness. They have been planning so that markets are not roiled by certain individual events. And in fact, what we heard yesterday in the market was the people are more concerned in many ways by Puerto Rico's debt problems and by China's markets and what is happening over there. Greece is a side show, unless and until, it effects the Eurozone economy. Which is when President Obama said, it becomes a concern to the U.S.

ROMANS: A side show for everyone, but Greek citizens who are suffering almost living in a depression, quite frankly. And you are right about Puerto Rico. Americans investors in particular Richard, are much more likely to be exposed to Puerto Rican debt than they are in Greek. Richard Quest in Athens, we'll talk to you again very, very soon. Keep us posted.

All right. The White House says for-profit colleges have taken advantage of hopeful students and it stops now. The bad actors, the White House says, are going to be put out of business.

[05:55:00] (COMMERCIAL BREAK)

ROMANS: All right. I'm Christine Romans. Let's get an early start on your money this Thursday morning. Stock futures up a bit. Everything could change though. At 8:30 A.M. eastern time, the June jobs report comes out. Here is the prediction from CNN's money. A jobless rate ticking down to 5.4 percent and 235,000 jobs added. That job growth a bit weaker than last month, but folks still strong enough to show a strong economy that could handle an interest rate hike by the Federal Reserve in September. With those numbers on your screen, basically illustrates the strongest jobs market in seven or eight years.

The Obama administration cracking down on for-profit colleges. New regulations will hold schools accountable for the value of their degree. Education Secretary Arne Duncan told me there are just too many students graduating from these for-profit colleges was loads of debt and no job prospects.

ARNE DUNCAN, EDUCATION SECRETARY: Getting real skills that lead, lead to real jobs, that's fantastic. We want more of that to happen. But too many of these guys took advantage. Taxpayers have been on the hook. People taking out big loans have been on the hook. We are in a worse financial situation than you started. Nobody stands up for that.

ROMANS: Yes. He said, they will put the bad actors out of business. Programs that don't meet the requirements are forced to make changes fast or shut down.

All right. 58 minutes past the hour. A captured killer sharing stunning new details about his escape from prison. "New Day" picks up that story now.

: Convicted killer David Sweat revealing shocking new details about his escape. He got to an underground passageway. And in that passageway they found a sledgehammer.

TRUMP: They are rapists...

UNIDENTIFIED FEMALE: And it's a horrible thing to say about anyone.

UNIDENTIFIED MALE: We see drift, drift, drift. Corporate America is turning away from Trump.

TRUMP: Macy's was unable to hand pressure. They folded like dogs.

UNIDENTIFIED MALE: Feel the burn. Bernie Sanders with a huge turnout in Wisconsin.

UNIDENTIFIED MALE: The billionaire class, you can't have it all.

UNIDENTIFIED FEMALE: It was a shark, approximately six to seven feet long.

UNIDENTIFIED MALE: The seventh shark attack in North Carolina in the last three weeks.

UNIDENTIFIED FEMALE: It was scary. I don't remember seeing so many shark attacks.

ANNOUNCER: This is "New Day" with Chris Cuomo, Alisyn Camerota and Michaela Pereira.

ALISYN CAMEROTA, CNN ANCHOR: Good morning, everyone. Welcome to your New Day. It is Thursday, July 2nd. 6:00 in the east. Chris Cuomo is off this morning. John Berman joins us. Great to have you.

BERMAN: Thank you. Fact check, true.

CAMEROTA: Very good.

BERMAN: All right.

CAMEROTA: So far so good. Up first, there's a new warden in charge at the New York prison at the center of the highly publicized escape and he is implementing all sorts of new security measures.