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Early Start with John Berman and Zoraida Sambolin

Security Watch: July 4th Terror Concern; New York Prison Break: Escaped Killer's Promise; Tunisia Terror Attack: New Arrests. Aired 4- 4:30a ET

Aired July 03, 2015 - 04:00   ET

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


[04:00:43] CHRISTINE ROMANS, CNN ANCHOR: Fourth of July terror threats creating concern across the country. Security enhanced as false alarms create panic in the streets.

JOHN BERMAN, CNN ANCHOR: Stunning details on the New York prison break. The slain escaped killer, he sent his daughter a letter shortly -- I don't know if it was before or after breaking free -- what he promised her. That's ahead.

ROMANS: Breaking overnight. New arrests in the ISIS terror attack in a Tunisian hotel, as England prepares for a moment of silence for the dozens it lost. We are live.

Good morning. Welcome to EARLY START. I'm Christine Romans.

BERMAN: I'm John Berman. Great to see you today. It is Friday, July 3rd. It is 4:00 a.m. in the East.

There are concerns this morning as law enforcement launch new measures to battle the threat of terror this the holiday weekend. Worries over ISIS social media chatter has officers fanning out in Los Angeles, Atlanta, Chicago, and other major cities.

In New York, state police with radiation protectors are patrolling rivers and harbors. NYPD is deploying special forces units, bomb sniffing dogs, scanning the crowd with about 7,000 cameras.

The department's counterterrorism chief says the Macy's firework show will have potentially the most complex counterterrorism overplay ever.

(BEGIN VIDEO CLIP)

JOHN MILLER, NYPD DEPUTY COMMISSIONER: Go to the fireworks, bring your family. Have a great time. You're going to be at the most well- secured event in the city.

(END VIDEO CLIP)

BERMAN: In Washington, tens of thousands are expected to squeeze through nine access points onto the National Mall for fireworks show and concert. The tight security in Washington, D.C. and New York got something of a dry run with two false alarms -- a bomb threat in a mosque in Patterson, New Jersey, that turned out to be a crank call, and a report of gunfire at Washington's navy yard.

For the latest on that, let's go turn to justice correspondent Pamela Brown.

(BEGIN VIDEOTAPE)

PAMELA BROWN, CNN JUSTICE CORRESPONDENT: Well, John and Christine, it is clear that law enforcement is on edge. The overwhelming response from law enforcement at the navy yard came in part, of course, because of the eerie similarity to the navy yard shooting two years ago. But it's a result of the officials being on heightened alert leading into the Fourth of July weekend, given the significant terror concerns.

The events there unfolded with a 7:30 a.m. 911 call from a woman inside the navy yard reporting possible shots fired. After that, the entire complex was put on lockdown. Hundreds of law enforcement personnel converged on the area. And helicopters hovered above.

The White House even canceled all tours. Nearly three hours later, after every room in the building was searched, the all clear was given by police.

Adding to the fear of that time, police in New Jersey were investigating a bomb threat at a mosque in a mosque. That turned out to be a hoax, but with the increase chatter from ISIS supporters leading into the weekend, law enforcement clearly doesn't want to take any chances --John and Christine.

(END VIDEOTAPE)

BERMAN: All right. Our thanks to Pamela Brown.

Security concerns overnight in a mall at Fayetteville, North Carolina. Customers called police reporting a man with a Kevlar vest and carrying an AR-15 assault rifle. The mall was evacuated. Police stopped the man within minutes. No shots were fired.

Officials say charges against the suspect are pending. They have not disclosed his name or a possible motive, or really what was going on, but you can see why that had people worried.

ROMANS: New details this morning about the New York prison. A report in the Buffalo News says Richard Matt wrote a letter to his daughter just before he and David Sweat staged their brazen escape from the Clinton correctional facility.

According to law enforcement officials, Matt said in the letter, quote, "I always promised I would see you on the outside." Adding, "I'm a man of my word." His daughter got his letter three days after he escaped. Matt was killed by police.

Sweat was captured. He remains hospitalized.

We get more this morning on the investigation from CNN's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN NATIONAL CORRESPONDENT: John and Christine, federal authorities releasing a bit more information about those final moments between Richard Matt and that border patrol officer, that officer telling Matt to put his hands up. He ended up firing on that officer only after Richard Matt failed to put his hands up and put a .20-gauge shotgun at that officer. He picked up that shotgun along with the liquor that he found while he was on the run.

So, as violent as those last moments were, they could have been worse if not for the quick thinking of the border patrol officer.

[04:05:02] Also, new information coming to us about the alleged murder plot against Lyle Mitchell, Joyce Mitchell's husband. As you know, Joyce Mitchell denied she had anything to do with all that murder plot. David Sweat said she did.

Lyle weighing in and telling CNN yesterday afternoon, quote, "Lyle only knows what Joyce has told him. That was she didn't want to hurt Lyle."

Again, Joyce Mitchell telling investigators she had nothing to do with the murder plot, also telling her husband she did not want him hurt or anyone to go through with it -- John, Christine.

(END VIDEOTAPE)

BERMAN: Our thanks to Jason for that.

Breaking overnight in Tunisia, police arrested eight people suspected in the involvement in the terror attack in a beach resort in Sousse. That happened one week ago. In just hours, the 38 people killed in the attack will be remembered with a moment of silence in the United Kingdom. All but eight of those killed were British.

U.S. officials confirm two of Tunisia's most wanted terrorists were killed in coalition air strikes. One was a top lieutenant of Osama bin Laden. The other, a senior ISIS leader.

For the latest on these developments, CNN's Phil Black joins us live from Tunisia.

Good morning, Phil.

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Good morning, John.

Yes, eight people now in custody for last week's attack at the resort in Sousse, eight people, including one woman. But the authorities here say they are still looking for more. They released an image of a 29-year-old man who they say played a direct role not just in that attack, which killed 38 people, but also an attack here in the capital back Tunis back in March at the Bardo museum which killed 22 people, again, targeting Western tourists.

The police are acting on a theory that says those two attacks were linked, organized by the same network, and the gunman that took part in both massacres they say, they believe trained together across the border in neighboring Libya, that increasingly lawless county, where Islamist groups such as ISIS and others are gaining a stronger foothold day by day.

Meanwhile, the process of repatriating the victims continues. We know that 30 of the 38 were British, 17 of those have been sent back to the U.K. But there today, that U.K. will stop for a moment at midday to reflect upon the victims of the attack.

Meanwhile at the beach, where the attack began at Sousse, there will be another moment of reflection to consider the 38 lives that were taken so quickly and so brutally one week ago, John.

BERMAN: So much loss. Phil Black for us in Tunisia -- thanks so much.

ROMANS: Optimism, but no deal this morning with the Iran nuclear talks. France's foreign minister said he expected to be back with more work to be done on Sunday. Russia's deputy foreign minister saying he is confident an agreement will be reached. And in a concrete or maybe golden sign of progress, Iran was allowed to take possession of a 13-ton $485 million pile of gold bullion held up for two years by sanctions.

BERMAN: Potential speed bump in the process of restoring diplomatic relations with Cuba after more than 50 years. Senate Majority Leader Mitch McConnell says the Republican majority is unlikely to confirm an official ambassador to Havana. McConnell calls Cuba a thuggish regime and a haven for criminals fleeing prosecution in the United States.

President Obama has asked Congress to lift the trade embargo with Cuba as part of the efforts to reestablish diplomatic ties. The fact there won't be an official ambassador won't actually slow things up. The charge d'affaires, who is there already, frankly has ambassador status because of a previous roles. So, the person who would be running things in Cuba will be called ambassador even if he is not the ambassador to Cuba.

ROMANS: Certainly is a cooling, but a cooling of a cooling of relations. The cooling of relationship, the cooling of the thawing of relationship.

Anyway, the Obama administration is reportedly scaling back deportation as a policy shift to ensure the majority of the more than 11 million undocumented immigrants can stay in the country. "The Washington Post" says Homeland Security agents have narrowed enforcement in recent months to three groups of illegal immigrants.

The focus is on convicted criminals, terror threats and those recently crossing the border. Executive action by President Obama which would protect nearly 5 million people from being deported, that is being challenged by the courts.

BERMAN: BP has agreed to pay $18.7 billion to the Justice Department for gulf states that settled claims stemming from the Deepwater Horizon oil spill in 2010. Eleven people died on the fire on the oil drilling rig and millions of barrels of crude oil spilled into the Gulf of Mexico.

This is the largest corporate settlement in U.S. history. It involves Louisiana, Florida, Alabama and Mississippi. Louisiana will get the biggest chunk, $6.8 billion.

ROMANS: Some of that means they avoided years and years of litigation. So, these states are happy to get this in the books and get that money.

Let's get an early start on your money. The U.S. stock market closed today for the Fourth of July holiday, but the short week ago a bumpy one.

[04:10:01] Yesterday, a strong jobs report, the lowest unemployment rate in seven years. It sounds like a good thing, right?

Well, actually, the Dow fell 28 points. A healthy job market signals a Federal Reserve interest rate hike could be around the corner. Also, there were worries about the wage component of that number. Wages only grew 2 percent. Not enough for you to feel excited about an improving job market.

In Europe today, Greece's debt crisis is weighing on markets. Stocks are down in Europe. There's uncertainty by Greece's debt, and it's future in the European Unions. The Greek stock exchange and local banks are closed day number five. Those banks have been five days of closed banks. That's unbelievable in a modern economy.

Breaking overnight, health care giant Aetna will acquire Humana for $37 billion. The Supreme Court ruling upholding Obamacare subsidies has helped clear the path to deal-making. "The Wall Street Journal" reports Anthem and Cigna continue to talk about a possible merger. So, watch the health insurance space.

BERMAN: There's a new candidate in the presidential race. A Democrat this time, former Virginia Senator Jim Webb. In a statement, Senator Webb acknowledged his chances of wins are remote, but he says the voice of an outsider is sorely needed in this race.

He said, quote, "I understand the odds particularly in today's political climate where fair debate is so often drowned out by huge sums of money. Let's clean out the manure-filled stables of a political system that has become characterized by greed."

You know, he's written books.

ROMANS: He has a way with words.

BERMAN: He has a way with words, that's right.

The Democratic and Republicans candidates are busy campaigning this holiday weekend, Bernie Sanders, Martin O'Malley, Bobby Jindal, they will be in Iowa today. Chris Christie, Rick Perry and Hillary Clinton, they are stumping in New Hampshire.

As for current White House occupant, President Obama was doing campaigning himself.

ROMANS: He sounded like he was campaigning.

BERMAN: The Constitution says no, he cannot run again, but he was in Wisconsin savoring his recent political victories. He took some jabs at the Republican field.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We've got some healthy competition in the Democratic party. I lost count how many Republicans are running for this job. They'll have enough for an actual "Hunger Games." That is an interesting bunch.

(END VIDEO CLIP)

ROMANS: You will see more of him. He promised some of those Democrats who did change their tune and vote for his trade deal. He will campaign for those people.

BERMAN: I don't think there is a minimum or maximum to stage "Hunger Games." I think you can probably do it with two or three candidates. I don't think you need 16.

ROMANS: Republicans running for president on the record about Donald Trump and controversy over his immigration remarks many are calling racist. We've got that next.

(COMMERCIAL BREAK)

[04:15:43] BERMAN: All right. This morning, a serious challenge for Republican leaders and presidential candidates: what to do about Donald Trump?

The man running second place in nearly all key polling nationally, not to mention Iowa and New Hampshire. While the Republican Party is trying to build bridges to Latino voters, Trump called Mexican immigrants "criminals and rapists" as he entered the race for the Republican nomination. The party chairman called Trump's remarks not helpful. And his opponents are now being called on to respond themselves.

Let's get the latest from CNN's Athena Jones.

(BEGIN VIDEOTAPE)

ATHENA JONES, CNN CORRESPONDENT: Good morning. Donald Trump is rising in recent polls, but, the firestorm over his offensive remarks about Mexican immigrants is coming as the Republican Party is trying to make inroads with Hispanic voters so they can win back the White House in 2016.

So, now, many of Trump's GOP rivals are trying to make clear that they don't agree with him. Take a listen.

RICK PERRY (R), PRESIDENTIAL CANDIDATE: I don't think Donald Trump's remarks reflect the Republican Party.

GOV. CHRIS CHRISTIE (R-NJ), PRESIDENTIAL CANDIDATE: The comments were inappropriate. They have no place in the race.

SEN. LINDSEY GRAHAM (R-SC), PRESIDENTIAL CANDIDATE: When you label a group of people as rapists and drug dealers, it's more about you than it is him.

JONES: And Trump's remarks are costing him some lucrative business deals with Univision and NBC Universal and Macy's. Now, Serta is putting to rest its line of Trump home mattresses. That's a luxury line of mattresses.

Trump may have the support of rising Republican primary voters, but more and more others are showing they don't want to touch him with a ten-foot pole.

In fact, New York City Mayor Bill de Blasio has said he's going to review the city's' contracts with Trump, focusing in part on a golf course in the Bronx -- John, Christine.

(END VIDEOTAPE)

ROMANS: So, I'm curious, Jeb Bush who is running close to him in the polls in some states, has Jeb Bush weighed in on this?

BERMAN: He did. When he was asked about this weekend, it come out and say something.

The issue for the candidates is, are you pro-active? Do you go out of your way like George Pataki did to attack Donald Trump?

ROMANS: Or do you elevate Donald Trump to your level --

(CROSSTALK)

BERMAN: If you go out of your way and start talking about him, you elevate him to a certain extent. These candidates want to run their own race. However, silence comes at a cost, too. So, it will be interesting to see what they do as they go forward, particularly if he is standing on a debate stage with him come August.

Let's talk more about Donald Trump, shall we? The Miss USA pageant has found a new home after NBC and Univision dropped it. Trump owns most of it. The small independent cable channel Reelz has announced it will pick up the July 12th pageant broadcast.

But not even Reelz is standing behind Trump and his statements. Overnight, right here on CNN, network CEO Stan Hubbard condemned Trump's immigration comments while embracing the rich pageant tradition.

(BEGIN VIDEO CLIP)

STAN HUBBARD, REELZ: I think those comments are completely ridiculous. I think most of America thinks the same way. I also think when you are a giant corporation, you have lots of entanglements that an independent network doesn't have. An independent network Reelz is able to look at contestant and community and American tradition and get our arms around the good parts of it and bring it to television on July 12th.

The agreement that we made is with the pageant officials, not with the Trump organization.

(END VIDEO CLIP)

ROMANS: They have casting to do.

BERMAN: A lot of casting. All of the previously announced hosts and performers has backed out. So far, Reelz has not announced any replacements.

ROMANS: All right. Concerning and unacceptable. That is what Baltimore police tell CNN about a sign found inside one of the department's inmate transport vans.

Here is the sign, which reads, "Enjoy your ride because we sure will." This is Baltimore, folks. Department officials tell our affiliate WBAL that the photo is real, that inspections are underway on all department-owned vehicles. This comes from the wake of Freddie Gray's death.

In April, gray died after suffering a severe spinal cord injury while being transported in a similar van. Six Baltimore police officers have been charged in his death. That's just unacceptable.

BERMAN: Investigators say the cause of the fire that destroyed the Mt. Zion AME Church in Greeleyville, South Carolina, was natural, not criminal. They believe a lightning strike sparked Tuesday night's blaze. However, the Justice Department says it is investigating several church fires that broken out across five states over the past two weeks. Federal investigators say so far they have found no link between the fires.

[04:20:00] ROMANS: Fireworks on the freeway. A Chevrolet van packed with fireworks exploded near the Nevada border Thursday afternoon. No one was injured, but that van engulfed in flames, sparks were flying, stalling traffic on the main freeway, between Los Angeles and Las Vegas for hours. The driver fled and is still at large.

BERMAN: All right. Chaos in Greece. Just a couple of days away from the vote that could be the final nail in the coffin in terms of the relationship with the European Union. We are live next.

(COMMERCIAL BREAK)

ROMANS: What a financial mess in Greece ahead of a crucial vote Sunday and referendum to accept the terms of a bailout deal from European creditors. Now, big protests both for and against are expected in the capital. The outcome could determine Greece's future and the eurozone.

CNN's Elinda Labropoulou is following the developments live in Athens for us.

And, you know, the clock really ticking down here. Just so much uncertainty. For Greek citizens, Linda, it is a choice between bad and worse, basically.

ELINDA LABROPOULOU, CNN INTERNATIONAL CORRESPONDENT: Well, this seems to have been the argument all along that those in the yes camp are voting for Europe and those in the no camp are basically voting for anti-austerity. There is no clarity in the question necessarily, that Greeks have to vote. It's about a proposal that's already been and gone.

So, in a way, a bit of a theoretical referendum and this is what's at stake. We have the first initial polls coming out showing that the two sides are very, very close.

[04:25:04] It is difficult at this point to reach an estimate of where this might lead to. And all this takes place at a time of extreme polarization between the two sides with the referendum that only came days ago. It was only announced days ago.

And since then, banks are closed and people find themselves in lines to get money out. It comes with a lot of uncertainty as to what happens next and when the banks will reopen. Something that is, of course, very crucial to the Greek economy. Most people seem to be out talking about it and trying to see what they can do. Not giving up yet, but certainly extremely concerned about the future of their country -- Christine.

ROMANS: A country divided and let's be clear, people have lost an economy that shrunk by 25 percent. Typical families have lost, you know, 30 percent of their earnings. Services have been cut.

At some point with banks closed for five days, there have to be these moments when there won't be the right medicines in the hospitals, there won't be services on the streets, there won't be paychecks for people if they can't get the economy moving forward. Are Greek citizens concerned about that?

LABROPOULOU: More than just concerned. They're terrified of that happening. Of course, we have reassurances from the politicians that once the referendum is out of way and a solid decision has been made, the deal will come very quickly.

That, of course, remains to be seen. This is just what we have been hearing from the Greek side and voices from the creditors and from Europe are basically saying none of this is clear at the moment. The IMF came out yesterday and said Greece needs more debt relief, something that the government also supports.

But we also know that this debt relief is not something the Europeans have supported until now. So, it's all very much up in the air.

ROMANS: Elinda Labropoulou, thank you so much. All still up in the air after five years, actually, of talking and negotiations and how to fix Greece's problems. I want to thank you so much. Some Fourth of July terror threats to tell you about creating serious concern across the country and false alarm that trigger panic as well. Bomb threats to potential gunman in shopping malls. We'll tell you the details, next.

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