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Early Start with John Berman and Zoraida Sambolin

Greece Rejects Debt Deal; Iran Nuclear Deal: "Hard Choices" Remain; USA Wins Women's World Cup; Pope Francis Lands in Ecuador. Aired 4:30-5a ET

Aired July 06, 2015 - 04:30   ET

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


(COMMERCIAL BREAK)

[04:30:44] CHRISTINE ROMANS, CNN ANCHOR: Breaking news this morning: Greece's finance minister quits. Voters tell Europe to take their bailout and shove it. Shuttered banks could soon run out of money and world markets are very, very nervous. Live in Athens as this crisis unfolds.

JOHN BERMAN, CNN ANCHOR: One day left for the United States and Iran to reach a nuclear agreement. They are said to be closer than ever, but hard choices remain. So, what are these obstacles? Will they be overcome? We are live with the latest.

ROMANS: And the most stunning 16 minutes of soccer in the history of ever. There they are. The U.S. women, champions of the world. It was good. Every minute of that game was so good. We are so tired this morning, and it's a good tired.

Welcome back to EARLY START. I'm Christine Romans.

BERMAN: I'm John Berman. Carli Lloyd just scored again.

All right. Thirty-one minutes after the hour right now.

(CROSSTALK)

BERMAN: Yes, exactly. Carli Lloyd will be here in 20 minutes to bring the sports reports.

ROMANS: Just kidding, she won't.

We begin this morning with breaking news in Greece. The Greek finance minister quits after the Greek people tell Europe, forget it. We don't want your bailout or terms. A resounding no vote in Sunday's referendum on the latest European bailout offer.

The finance minister writing in a blog post, he says the European creditors wanted him gone. He says he is quitting his job to help the prime minister reach a new bailout deal. He says, "I shall wear the creditors' loathing with pride."

Markets around the world -- they are sinking in response to Greek voters' rejection of that bailout deal. European stocks sharply lower right now, so are U.S. stocks futures. This no vote puts Greece's future further in question.

It deepens the divide between Greece and the rest of Europe. The European countries who hold Greek debt.

Look, you know, Greece -- Greece, there were more reforms -- Europe wanted more reforms from Greece in exchange for its bailout. But Greeks voted no. They had enough of the steep cuts. They don't want to have higher taxes. They don't want to have cuts to their pensions, cuts to their government checks every month. That's pushing the country closer to bankruptcy. It is pushing it closer to having to exit the Eurozone.

Greece desperately needs more money to pay pensions, to pay wages, to reopen banks which have been shut for a week. The big question now, how will European leaders react? Senior officials are meeting ahead of a big summit tomorrow.

Thousands of Greek people celebrating the vote. Gleeful that they told Europe what they really think about their terms. But they may be waking up this morning with more than one hangover quite frankly. They face a prospect of an economy in chaos, the possibility of extension of bank closures, tighter restrictions on daily withdrawals from ATM machines and from banks, and shortages, maybe basic food staples, even medicine.

Let's get straight to CNN's Isa Soares live for us in Athens.

And, Isa, I mean, they had five years now of crisis. A couple of years of what's known as austerity, you know, smaller paychecks, higher taxes, fewer services, because they had too much debt. The country lived beyond its means for too long and relied on just one industry, tourism, did not diversify, did not restructure its economy and now, it's really paying the price.

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: And you hit the nail on the head right there, Christine. That's the problem. The economy has not diversified. It's only dependent on tourism. And, really -- it needs to really it has too much debt. It needs to get rid of that debt. That is what Prime Minister Alexis Tsipras has been calling for.

The IMF, if you remember this in the report this week, also said suggesting in its analysis, the debt also, they'll be a debt reduction when it comes to Greece's debt. In fact, it's not sustainable in the long term.

And that is why we are seeing so many concerns regarding the next few days, because any sort of deal from the Greek side, they want a debt reduction in order to get a deal on the table. It is dealing with most more pension cuts and raises to taxes. Something has to give in.

But let me just show you the cue behind me, because the reality is this, people are still cueing. You see two people having a bit of a row, cues along. Some people can't get 60 euros. If you remember earlier this week, you know, they have run out of 20 euro notes, Christine.

[04:35:03] So, people could only get 50 euro. So, tempers are starting to flair. And if ECB does not pump more money in the banking system today, then will that limit of 60 will go down to 20? And that will be extremely difficult for the Greek people. And the tempers we see flaring here, it could get worse -- Christine.

ROMANS: It's getting much worse. We are watching the global markets, because futures are down around the world, stocks are down in Europe because of the concern. If Greece leaves the eurozone, what happens to Europe, what happens to the Euro, what happens to the global economy.

Thanks for that, Isa.

BERMAN: Happening now: countdown to the deadline with the nuclear talks with Iran. That deadline is tomorrow, for now. The Iranian foreign minister, Javad Zarif, says the two sides are closer than ever to a deal. With Secretary of State John Kerry says not so fast. We're not there yet.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: I want to be absolutely clear with everybody: we are not yet where we need to be on several of the most difficult issues. And the truth is that while I completely agree with Foreign Minister Zarif, that we have never been closer, at this point, this negotiation could go either way.

(END VIDEO CLIP)

BERMAN: The secretary says the U.S. is still willing to walk away from the talks. A source familiar with what's going on tells CNN there is a lot of work to do.

CNN's Atika Shubert is live at the talks in Vienna.

Atika, good morning. What's the latest?

ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning.

In fact, I believe China's deputy foreign minister has arrived as part of the talks. Just a few minutes earlier, we saw Russia's foreign minister, Sergey Lavrov, also arrived. And this is what it's going to be like all day, arrivals and back-to-back meetings, the pressure is on to try to make that deadline.

But as you heard from Secretary of State John Kerry, still quite a few difficult issues where tough decisions need to be made. Among them, the timetable for sanction relief, but also what kind of access, IAEA inspectors will get, as you know, a lot of the Republican critics have been saying the U.S. needs, IAEA needs anytime, anywhere inspections. Something Iran says it's not going to do.

So, drilling down those details and what kind of access, how much notice will be given, which military sites, that's the kind of nitty- gritty details are going through tonight. Hopefully, we'll get some decisions. Otherwise, we're going to go past that deal which ends tomorrow, John.

BERMAN: End tomorrow. I can't wait to hear from the secretary and the foreign minister of Iran to find out exactly where they think things are.

Atika Shubert for us this morning, thanks so much.

ROMANS: All right. New this morning, political fallout from Donald Trump, a fresh round of recriminations for his controversial comments about Mexican immigrants. Trump is standing by his words and issuing new statements open for debate. And his Republican rivals in the Republican race are now taking notice.

CNN's Sunlen Serfaty has more from the White House.

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SUNLEN SERFATY, CNN NATIONAL CORRESPONDENT: Good morning, John and Christine.

Well, there continues to be fallout from Donald Trump's controversial comments when he said that Mexican immigrants are rapists. And that continues to be a controversy which is sucking up much of the oxygen on the campaign trail.

We have seen recently this past weekend, many of the Republican candidates seeming to be a little more aware of that and not only distancing themselves from the Trump's comments, but also trying to push back a little more aggressively, indicating that this is hurting the Republican Party. We saw Jeb Bush over the weekend in New Hampshire, saying that he is personally offended by Trump's comments, given that his wife was born in Mexico and calling it rude language.

Other candidates ramping up criticism of Trump as well.

RICK PERRY (R), PRESIDENTIAL CANDIDATE: Donald Trump does not represent the Republican Party. I was offended by his remarks. Listen, Hispanics in America and Hispanics in Texas, from the Alamo to Afghanistan, have been extraordinary people, citizens of our country and of our state. They have served nobly. And to paint with that broad a brush, that Donald Trump did, is -- I mean, he's going to have to defend those remarks.

MIKE HUCKABEE (R), PRESIDENTIAL CANDIDATE: Honestly, Donald Trump needs no help from Mike Huckabee to get publicity. He's doing a really good job at that.

SERFATY: Meanwhile, Donald Trump isn't backing down. In fact, he seems to be doubling down, continuing to defend his remarks.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I love the Mexican people. They are fantastic, and everybody knows that.

But in terms of the border, it's a disgrace. Either we have a border, or we don't have a country. You know, you can't have a country without borders.

And people are coming in. And some of those people -- and I read it even yesterday, there was a huge article about the tremendous crime that's taking place, it's like a crime wave. It's one of the most dangerous places on earth. I bring that up and, all of a sudden, I'm a bad person.

SERFATY: All this back and forth comes at a time when many Republicans are eager to reach out to Hispanic voters, bring them into their party. That's likely a big reason why we're seeing many of these candidates start to speak out much more forcefully, noting that it could be damage to their party's brand -- John and Christine.

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[04:40:05] ROMANS: All right. Sunlen, thank you for that.

Republican candidate and former New York governor, George Pataki, is in New Hampshire today. He's going to host an immigration policy roundtable with reporters in Manchester. He will address a letter. He sent out this letter Friday to fellow GOP candidates. He asked them to denounce Donald Trump over those comments about Mexican immigrants.

BERMAN: You know what else I hope they talk about?

ROMANS: What?

BERMAN: The World Cup champion United States team! Look at this. The United States had the most amazing 16 minutes I had ever seen in soccer started right there.

Two and a half minutes into the game, Carli Lloyd scores the first goal. What did she do after that? She scored the second goal just two minutes later. They're up 2-0. By 16 minutes, they are up 4-0.

Oh, here's number three. This is the one in the first few minutes not scored by Carli Lloyd. But it was fantastic nonetheless. And I hope we have it here.

Really, one of the most amazing goals I have ever seen in soccer. Look at this. Carli Lloyd notices the Japanese goalie is up to far and puts it over her head.

ROMANS: That is unbelievable.

BERMAN: I said 16 minutes. It was 15 minutes and nine seconds by the time they're up 4-0.

Japan did manage to get on the board. Final of this score of this game was 5-2. Carli Lloyd was given the golden boot. She's considered the most valuable player in this entire tournament.

And later, her coach talked about how important this New Jersey native is to the team.

(BEGIN VIDEO CLIOP)

JILL ELLIS, TEAM USA COACH: Players get hot and you can ride the players that are hot. And, you know, for Carli, you know, the attacking part of her game, she was doing tremendously well. So, it was a natural decision for me to push her into a higher position and play here there. And, you know -- I mean, she relishes that role. I still make her defend, but she relishes that role. And, you know, I'm just incredibly proud of all of the players.

(END VIDEO CLIP)

BERMAN: They were amazing. It was really amazing. They steam rolled Japan those first few minutes of the game. It was one of the most incredible performances I have seen.

You see the fans in Vancouver. A lot of U.S. fans made it up to Canada for this game. And now, the U.S. team with the World Cup in hand, they will go to the White House. Hang with the president. This is the first World Cup victory for the U.S. since 1999.

ROMANS: Congratulations. What an awesome, awesome performance.

All right. Forty-two minutes past the hour. Controversy brewing in South Carolina. In just hours, lawmakers to debate whether to rid government buildings of that, the Confederate flag. What residents there are saying right after the break.

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[04:46:05] ROMANS: This morning, South Carolina lawmakers convene a special session to debate removing the Confederate flag from the capitol grounds. Governor Nikki Haley and others have called for it to be taken down in the wake of the church massacre in Charleston.

Let's more this morning from CNN's Nick Valencia.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN CORRESPONDENT: John and Christine, a lively debate took place here between supporters of the Confederate flag and those who want to see it permanently removed. Today, state lawmakers will begin that debate. Already, the state's governor, Republican Nikki Haley, has asked for the flag to be taken down.

Earlier, we caught up with people on both sides of the issue.

UNIDENTIFIED MALE: You take the flag down, it's going to piss more people off, and rile more people up.

VALENCIA: Why is that?

UNIDENTIFIED MALE: Because this is our heritage, this is who we are, this is who were proud to be. In the South, you stand with us or you stand against us.

UNIDENTIFIED FEMALE: It's just a symbol, whether it's up there or in the museum, it's just a symbol. It's what we do with that symbol that it's going to determine whether South Carolina is in the news for the wrong reasons or whether you see us stepping off the grandstands and shaking hands and saying this is us. We have our opinion. We are staunch about them, we can yell about them. But when it is all said and done, we're united.

VALENCIA: It will take a 2/3 vote in both chambers of the state's general assembly for the flag to officially be removed. I spoke to one former state representative who said if the vote goes smoothly, the flag could be taken down as early as Thursday -- John, Christine.

(END VIDEOTAPE)

BERMAN: Our thanks to Nick for that.

A new round of deadly violence in Chicago. Police report 33 shootings with more than 3 dozen people injured and seven killed this holiday weekend. One of the deaths a 7-year-old boy Amari Brown. He was fatally shot while celebrating the Fourth with his family. At a prayer vigil on Sunday, family and friends, they spoke about this senseless tragedy.

(BEGIN VIDEO CLIP)

MICHAEL SINGLETON, FAMILY FRIEND: Y'all will be back out here next week on another corner filming the same thing from somebody else saying exactly what I'm saying. So, I'm tired of doing news conferences and tired of listening to them and tired of talking about them. Until we make a better decision as a community and as a city, this is all that's going to happen.

(END VIDEO CLIP)

BERMAN: Police say the father, a known gang leader with a lengthy rap sheet, he was the target, they say of the shooting here. They say he is not cooperating right now with the investigation.

ROMANS: All right. David Sweat is back in prison this morning. The notorious escapee was released Sunday from a locked hospital unit in Albany. He was taken to the maximum security Five Points correctional facility in the town of Romulus, New York. Now, local residents there, they know all about Sweat, but they say they do not fear another breakout.

(BEGIN VIDEO CLIP)

PRESTON ELKINS, ROMULUS, N.Y. RESIDENT: This is a more secured prison. It's more secured. At least 23 hours lockdown, I would say that gives him more time how to escape the next prison, but it doesn't scare me.

PATRICK BEAVERS, ROMULUS, N.Y. RESIDENT: It's a safe, secured place. So, I trust them and I know they're going to do the job. So --

(END VIDEO CLIP) ROMANS: Authorities say Sweat will be on suicide watch. He will be housed in a special unit of the Five Points prison. Sweat was shot and captured three weeks after a brazen escape from the Clinton correctional facility. He escaped, along with Richard Matt. Police shot and killed Richard Matt.

BERMAN: You know, I would not be worried about a breakout this time. I think he'll be watch pretty closely.

ROMANS: Yes, I'll say.

BERMAN: All right. The pope is in South America this morning. Look at how he was greeted upon his arrival. He has a huge speech scheduled for today. We will tell you what he is expected to say. That's coming up.

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[04:53:13] BERMAN: All right. This morning, Pope Francis is in Ecuador, kicking off a tour of his native South America. In a mass on Sunday, the pope said he is filled with excitement and hope for the days ahead. And I have to tell you, the people of South America -- they are as well.

So, what is on the agenda?

CNN's Rosa Flores joins us now from Quito in Ecuador with the latest -- Rosa.

(BEGIN VIDEOTAPE)

ROSA FLORES, CNN CORRESPONDENT: This is a homecoming of sorts for Pope Francis. He was born in a South American country. He knows the history. He knows the language.

And in the 22 plus speeches that he's expected to deliver, he will be speaking in Spanish. So, a lot of people waiting to hear what he has to say. Of course, he is known for making controversial comments.

But his first stop, Quito, Ecuador, where he was welcomed at the airport by dignitaries, by the mayor of the city, by the president. He gave brief remarks where he asked people to be thankful for the little things.

Now, he will be visiting Bolivia and in Paraguay as well, where he is expected to deliver some of the same messages of peace and democracy.

(END VIDEOTAPE)

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

Now, another royal christening is in the books. John has been looking up pictures all morning. He is enthralled by that little Princess Charlotte. This is, she is fourth in line to England's throne. Princess Charlotte was christened in a private ceremony Sunday. Private, but we have all these pictures of it. Her parents, Prince William and Duchess Katharine have been keeping low key.

BERMAN: Oh, come on!

ROMANS: Only close friends and family are among the guests, except for the camera crews. They did invite the public to a field outside the church to share their well wishes.

BERMAN: To share their obedience and servitude.

ROMANS: So, on a Fourth of July weekend, I think that's sort of an interesting timing, just to kind of like reminds us that --

BERMAN: Good bless, America. Thank you, America, that we don't do this.

[04:55:00] ROMANS: OK. So, they call it a pram in England, but we call it a stroller. Apparently, the queen used that stroller on two of her own children, which lead to wonder, so do they have like a stroller garage, a pram garage.

BERMAN: I'm sure they've got a palace for the pram or stroller. That's how it works there and the taxpayers of England pay for it. I wish all the best to that family and those kids and the country. You need the help.

ROMANS: Speaking of needing help, a country on collapse on the other side of the world, Greece -- Greece is in major trouble. It could mean major trouble for your 401(k). That's next.

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ROMANS: I'm Christine Romans. Let's get an early start on your money this Monday morning.

Stocks around the world sinking. Greece voted no to Europe's latest bailout offer. European and Asian stocks are lower. U.S. stock futures are down.

One exception to that, China stocks -- those stocks have been, wow, wildly swinging lately. The government promised emergency support to prop up market. Chinese government doing all it can to prop up those stock markets.

So, a lot of volatility there. A lot of uncertainty this morning with Greece's future in the Eurozone, very much in question.

Here is why Greece's no vote matters to your money. First, your 401(k) could nose dive. The U.S. stocks had the worst week of the year when it became clear Greece missed the big payment to the IMF. That could happen again.

Don't panic too much. Experts telling CNN Money a downturn could be temporary to your 401(k). Greece is a tiny economy. U.S. investors have very limited exposure.

Next, European travel could be a lot cheaper. That's another reason it matters to your money. The euro plunging against the dollar, that means every dollar saved for a European vacation will go further.