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Early Start with John Berman and Zoraida Sambolin

Fourth of July Terror Concern; New York Prison Break: Escaped Killer's Promise; Tunisia Terror Attack: New Arrests. Aired 4:30-5a ET

Aired July 03, 2015 - 04:30   ET

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

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[04:30:55] JOHN BERMAN, CNN ANCHOR: Fourth of July terror concerns fraying nerve across the country. Security enhanced in so many cities as some false alarms have put people on edge. We have new developments overnight. That's coming up.

CHRISTINE ROMANS, CNN ANCHOR: New, stunning details in the New York prison break. We are learning one of the escaped killers wrote a letter to his daughter with a promise he made, ahead.

BERMAN: Breaking overnight. New arrests in an ISIS-inspired hotel terror attack. We are live.

Welcome back to EARLY START, everyone. I'm John Berman.

ROMANS: I'm Christine Romans. It's 31 minutes past the hour. Independence Day holiday, this July 3rd today.

Across the country this morning, police are ramping up security ahead of the Fourth of July holiday weekend among concerns over ISIS social media campaign urging homegrown terror attacks. Officers are fanning out across Los Angeles, Atlanta, Chicago and other major cities.

In New York, state police boats with radiation detectors patrols harbors. The NYPD Is deploying special forces units, bomb-sniffing dogs and scanning crowds with some 7,000 cameras. The department's counterterrorism chief says the fireworks show will be have the most complex counterterrorism overlay 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)

ROMANS: In Washington, tens of thousands are expected to squeeze through nine access points on to the National Mall for the fireworks show and concert. The tight security in D.C. and the New York area already getting a dry run with two false alarms. One, a bomb threat in a mosque in Patterson, New Jersey, turned out to be a crank call. But, boy, really brought out the police and the SWAT team. The other is a report of a gunfire at the Washington navy yard.

For the latest on that, we 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)

ROMANS: All right. Pamela, thank you for that.

Now, the possibility of a terror attack leapt to everyone's mind in a mall in Fayetteville, North Carolina, overnight. Customers called police reporting a man with a Kevlar vest and carrying an AR-15 assault rifle in the mall. The mall was evacuated. Police stopped the man within minutes. No shots were fired.

Now, officials say charges against the suspect are pending. They have not disclosed his name or saying why he was in the mall with a gun and a Kevlar vest.

BERMAN: You can see why that is concerning.

New details about the New York prison break. A report in the Buffalo News says that 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 received the letter three days after the escape. Matt was shot and killed by police.

David Sweat remains hospitalized this morning. Let's get more now on the investigation from CNN's Jason Carroll.

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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.

[04:35:03] 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.

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: All right. Jason, thank you.

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

This as U.S. officials confirmed that two of Tunisia's most wanted terrorists were killed in coalition airstrikes last month. One, a top lieutenant of Osama bin Laden and the other, a senior ISIS leader.

For the latest in all these developments and to bring in altogether, let's bring in CNN's Phil Black live from Tunisia.

That's going to be an emotional morning of -- an emotional morning in England.

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Yes, it is, indeed, Christine.

One week from today is about remembrance. Firstly, on the sands near the resort where the attack began. That is where a crowd will gather to think about the horror that took place and the lives taken so brutally and so quickly.

Across the United Kingdom, 30 of the 38 victims were British. It has been a powerful, moving week for the British people today. They will stop and reflect about that loss. The worst from a terror strike since the bombings in London back in 2005.

Meanwhile, the investigative effort continue here in Tunisia. Eight people are arrested and authorities are still looking for more. They have released an image of a man they are looking for specifically, a 29-year-old man who they say was involved in the Sousse resort attack, but also in the and another attack which took place here in Tunis back in March, which also targeted western tourists in which 22 people were massacred. They believe they are looking at a wider terror network that is still active and still dangerous.

We spoken to the prosecutors that are involved in the case, and they say they are being cautious in the information they are making public because they are still hunting members of the group. They believe the group is active in Tunisia and across the neighboring border with Libya. That country that is increasingly lawless and approaching the status of a failed state where Islamist groups such as ISIS are active.

The theory authorities are pursuing is the gunman involved in the beach attack as well as the museum attack trained together. And they fear they could still be planning more attacks here on Tunisian soil -- Christine.

ROMANS: Totally concerning. The investigation continues. Phil Black, thank you so much, Phil.

BERMAN: The Obama administration is reportedly scaling back deportations to ensure the majority of the more than 11 million undocumented immigrants stay in the country. "The Washington Post" says that Homeland Security agents have narrowed enforcement in recent months to three groups of illegal immigrants, convicted criminal, terror threats and those recently crossing the border. The executive action by President Obama which will protect nearly 5 million from being deported is being challenged in the courts.

ROMANS: BP has agreed to pay $18.7 billion to the Justice Department and four 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.

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

Let's get an early start on your money. The U.S. stock market closed for the Fourth of July holiday. Government offices closed as well. The short week was a bumpy one on Wall Street.

A strong jobs report, a healthy jobs report, the lowest unemployment rate in seven years yesterday. But stocks dipped. The Dow dropped 28 points.

Healthy job market signals a fed interest rate hike is coming eventually. Maybe as early as September. Still a lot of debate about when it's going to happen. Also a wage component of that number, I like to see the wages rise a little bit more.

[04:40:03] In Europe today, stocks are down. Greece's debt crisis weighing on the markets. Uncertainty about Greece's debt and its future in the European Union. One way Greece could pay off the loan is crowdfunding site, Indiegogo. Not really. The fund raised more than 1.7 million I five days.

It is a long way from the $1.8 billion Greece owes the IMF, but it's getting a lot of attention. Even Emma Watson chipped in. She tweeted, I donated and included a link to the fund.

BERMAN: It's going to take more than that, more than a spell from her to fix the Greek debt crisis. I don't think that's the

ROMANS: Magic is something the Greeks have not considered yet.

BERMAN: Not yet, but they may need that.

All right. There is a new candidate in the presidential race. A Democrat this time, former Virginia Senator Jim Webb. In a statement, Webb acknowledged that his chances of winning are remote, but the outsider is sorely needed in this race.

Listen, he says, "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."

Jim Webb, in addition to being a former senator, a decorative veteran, is an author of some ten books. He is a good writer. You can see it there.

ROMANS: I'd say.

BERMAN: So, this weekend, 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 the current White House occupant, he sounds a little bit like a candidate, even though he cannot run for anything ever again. He was in Wisconsin, Thursday, savoring recent political good moments. He took a swipe at the crowded 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: He's got a smile on his face because he is taking a swipe to the Republicans, but he's had a pretty week, right? He got his trade thing through, Obamacare, I can't even track of all the successes he had last week. And even yesterday, you know, 5.3 percent unemployment rate, the lowest since the beginning of the financial crisis. This president has had a good week.

BERMAN: It's pretty interesting to see.

ROMANS: Now, Donald Trump now taking a beating from within his party. Republicans running for president on the record now about Trump and his controversial immigration comments. What they are saying, next.

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[04:46:13] ROMANS: This morning, Republican leaders and presidential candidates trying to figure out what to do about Donald Trump. Just as the party is trying to build bridges to Latino voters, trump called them, quote, "criminals and rapists" as he entered the race for Republican nomination. Now, the party chairman is calling Trump's remarks not helpful and his opponents are blasting him.

We get the latest from CNN's Athena Jones.

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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)

BERMAN: All right. Our thanks to Athena for that.

Concerning and unacceptable. That is what Baltimore police tell CNN about a sign found in one of the Department Inmate transport vans. Look at the sign. It reads, "Enjoy your ride because we sure will." Department officials tell our affiliate WBAL the photo is real and inspections are underway on all department-owned vehicles.

This comes in the wake of Freddie Gray's death. In April, Gray died after a spinal cord injury. Six Baltimore police officers have been charged in connection with his death.

ROMANS: 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. Still, 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.

BERMAN: 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.

ROMANS: Wow.

BERMAN: Millions in the path of severe storms this holiday weekend. What you need to know for today. That's next.

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ROMANS: I'm very sorry to report that the weather may put a damper on your Fourth of July weekend.

BERMAN: This won't fly, this won't fly.

ROMANS: Millions of folks are bracing for severe storms from the Carolinas to the mid south and the southern plains. Earlier, the same storm systems spawned a tornado, my goodness, in Nashville. The Thursday night twister uprooted trees, crashing cars and homes. Fortunately, no one was hurt.

BERMAN: In Missouri, look at the scene after strong storms and torrential rain swept through the region. One woman was killed after her car was swept off the road. In the meantime, two mobile homes in Jefferson County were evacuated as a precaution.

ROMANS: With more on the storms headed to the South, let's get to meteorologist Karen Maginnis -- Karen.

KAREN MAGINNIS, AMS METEOROLOGIST: John and Christine, it does look like for Missouri, a little bit of a drying trend taking place over the next several days. But we look at this forecast radar and it's signaling some pretty good thunderstorms ramping up again across the Ozark and to the Tennessee Valley, all the way over to the Carolinas. Some of those thunderstorms strong to severe potential, about 35 million people at risk for damaging winds, also large size hail and the potential for an isolated tornado all the way from Oklahoma City to Memphis and Nashville and Birmingham and Atlanta to Columbia, South Carolina and Charlotte.

High temperatures still well into the 90s across the west, it is tender dry here. That is why we have seen so many reports of fires across this region. In the Deep South, well, the searing heat is not here, but muggy. If you are traveling to Florida, temperatures mostly in the 90s. For the July 4th holiday, thunderstorms in the Southeast, isolated across the west. It's going to be quiet in the Great Lakes.

John, Christine, back to you, guys.

ROMANS: All right. Karen, thank you.

Are you planning to binge watch Netflix this weekend? It might cost you a little bit more.

BERMAN: Really?

ROMANS: Depending on where you live.

Oh, yes, taxing your binge watching. I'm not kidding. That's right after the break.

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[04:58:26] ROMANS: All right. Welcome back. Happy Friday.

Let's get an early start on your money this morning. The stock market is closed due to the Fourth of July holiday. It's third, but the stock market is closed, so are government offices.

In Europe today, stocks are down. Greece's debt crisis still weighing on markets. A lot of uncertainly about Greece's debt and the future of Greece in the European Union. Greek stock exchange and Greek banks are closed for a fifth day. That's just remarkable. A modern economy that banks have been closed all week.

All right. Your Fourth of July barbecue could get a bit more expensive this year. The biggest price hikes, steak and ground beef prices are up 10 percent.

BERMAN: But, look, cheese is going down.

ROMANS: You know what else is? Bacon is actually going down, too. Lettuce got more expensive, up 6 percent. Ice cream prices are up a bit and same for beer. Chicken and cheese got cheaper.

BERMAN: I think you're underplaying the good news here. Cheese prices are down. ROMANS: I'm not a cheeseburger person. Hamburger person.

BERMAN: Cheese is important to cheeseburger.

ROMANS: Hamburger is cheaper. Bacon prices are down 18 percent.

Something going up. Netflix got more expensive in Chicago. Residents will pay an extra 9 percent tax to use streaming services like Netflix and Spotify. The city amended its tax code to include streaming music, movies, television and online gaming.

Chicago expects to generate an extra $12 million each year because of this new the tax. They are using a tax that exists, sort of like recreation tax, or amusement tax. They are extrapolating that to this tax. Is it creative or is it overreach? What's they're called?

BERMAN: The answer is yes to both. I mean, they need the money, right?.

ROMANS: They need more money than that, but that's a start.

BERMAN: Yes.

EARLY START continues right now.