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Early Start with John Berman and Zoraida Sambolin
Potential Chaos in World Markets; One Day Left for U.S.-Iranian Nuclear Deal. Aired 5:30-6:00a ET.
Aired July 06, 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] (COMMERCIAL BREAK)
JOHN BERMAN, CNN ANCHOR: All right. Breaking news this morning. Potential chaos in world markets. Greece tells Europe to shove it. Take your bailout and shove it. So what happens now? What happens to U.S. stocks and your 401(k)? We are live as this crisis unfolds.
CHRISTINE ROMANS, CNN ANCHOR: And one day left for the U.S. and Iran to reach a nuclear deal. Said to be closer than ever before, but hard choices remain in the way. The latest on those negotiations ahead.
BERMAN: We will score on you again and again and again. The U.S. world cup team now world cup champions. Back where we belong. Welcome back to "Early Start" everyone. We're not happy about that or anything, I'm John Berman.
ROMANS: We are getting sleeplessness. I'm Christine Romans. It is 31 minutes past the hour. Let's begin though with our breaking news in Greece. Greek finance minister quits after the Greek people tell Europe take your bailout and shove it.
A resounding no vote in the Sunday's referendum on the latest European bailout offer. The finance minister he quits and he writes in a blog post the European creditor nations wanted him gone. He says he is quitting his job to help the prime minister reach a new bailout deal. He said I shall wear the creditors loathing with pride. It is unclear what kind of bailout deal they can get when he nagged down all agreement, who, who wants to give you a new deal.
Markets are sinking in response to the Greek voter's rejection of the bailout no vote. European stocks U.S. stock futures are lower. Euro falling against the dollar. The no vote puts Greece's future further in doubt. It deepens the divide between Greece and its European creditors. Europe wanted more reforms, more reforms from Greece in exchange for the bailout.
By more reforms, I mean they want higher taxes and they want the government to pay people less. Greeks voted they had enough of years of steep cuts. Pushing the country close to bankruptcy and an exit from the Eurozone. Greece desperately needs more money, it needs more money to pay pensions and wages and reopen the banks that have been shut for a week. The big question now, how will European leaders react to this
rejection from the Greek people. The senior officials meeting today ahead of a night summit tomorrow. Now, overnight thousands of Greeks celebrated the no vote on the streets. They wake up this morning facing the prospect of an economy chaos. The possibility of an extension of the banks being closed.
Tighter restrictions on daily withdraws from ATMs. Can you imagine living in a modern society not being able to go get your own money out of your bank? They are facing shortages. There are concerns that basic food stables and medicines inn hospitals will be in short supply. For the very latest, I want to get from our CNN's Lisa Suares, she is on the phone for us in Athens. Good morning.
LISA SUARES, CNN CORRESPONDENT: Good morning, Christine. Good morning too, John. The Greeks are waking up from the economic hangover. Decides coming to with last night 61 percent of people saying no more austerity. We have had enough. But this is a country that is divided 38% of people saying they wanted a yes. They wanted to stay and more austerity. They wanted proposals from Europe. This from many people are seeing the political victory from the prime minister Alexis Tsipras.
He faces greater turmoil now as he tries to prevent the collapse of the banking system that is running out of cash. We have seen people only being able to stay out 60 euro a day. That was the impose to them. Reports suggesting that the ECB does not come to rescue, that will decrease to 20 Euro a day. The ball is now clearly on the ECB court. As well as European Union because now it's for Greece and Europe to decide what the next step is. ECB is meeting later today to decide if liquidity is coming to Greece.
And I think the next stage will be critical. Greece has 5.5 billion Euro of payments left this month. 3.5 of which, Christine and John, is the ECB alone. That is how much it owes. It has to pay by July 20th. If it doesn't not paid, the ECB said, they are cutting off the support completely. So really tough day for Greeks and many of them counting every penny. Looking to try to find all currency to exchange for euro.
Christine and John.
ROMANS: There are just no good choices and no easy choices or answers. Isa Suares, thank you so much for that.
[05:35:00] BERMAN: Happening now, countdown to the deadline with the nuclear talk was with Iran that deadline is set for tomorrow. At least for now, the Iranian foreign prime minister Mohammad Javad Zarif says the two sides are closer to a deal, but the Secretary of State U.S. Secretary of State John Kerry says not so fast.
JOHN KERRY, SECRETARY OF STATE: I want to be absolutely clear with everybody. We are not yet where we need to be in several of the most difficult issues. The truth is that while I completely agree with foreign minister Zarif, we have never been closer. At this point, this negotiation could go either way. BERMAN: The secretary says the U.S. is still willing to walk
away from the talks. A source familiar with what's going on there says there is still a lot of discussion to be had. Still a lot of work to do. CNN's Atika Shubert is there. Atika.
ATIKA SHUBERT, CNN CORRESPONDENT: We have seen foreign ministers arriving. Russian foreign minister Sergey Lavrov walked in for back- to-back meetings. The pressure is on to try to make the deadline. Most of the thorny technical issues like enrichment capacity to prevent Iran from developing have actually been hammered out in previous talks, but this time it is the political issues they are trying to nail down. The issue of IAEA inspectors. What kind of access will they have?
U.S. has said previously they wanted anytime, anywhere inspections. Iran said, this is an absolutely redline for them so then what kind of access will they get to which sites? How much notice do they have to give? These are sort of the nitty-gritty details that need to be decided and the foreign ministers have to make those hard choices quickly if they want to get an agreement this week. The deadline is tomorrow.
It is possible perhaps for a little bit of leeway. They need to get it in by July 9th at the latest in order to get congress approval before they take that August recess.
BERMAN: Atika Shubert for us.
ROMANS: The administration focusing on ISIS today. President Obama set to be briefed on the fight against Islamic militants by defense secretary Ash Carter. Carter also meeting with a French defense minister this morning to talk about the battle against ISIS. A very aggressive stance over the weekend. At least 23 ISIS militants killed by coalition air strikes. That's according to a human rights group based in London. U.S. official says the attacks on the ISIS strong hold of Raqqa were part of the most sustained of air strikes to date.
BERMAN: All right. Undeniably, the greatest story on earth right now. The United States world cup champions. It happened perhaps while you were sleeping. Some of us stayed up basically all night because we were so excited. The U.S. crushed Japan, 5-2. It wasn't that close. Coy Wire. A lucky man. He was there to see the match and he was there really to see emergence of a new mega star.
Coy?
COY WIRE, CNN CORRESPONDENT: Good morning, Christine and John. Happy Monday to all of you early risers. A new household name in American soccer. Carli Lloyd she cemented her name in the annuls of American soccer (inaudible). Carli Lloyd is legend, she scored a hat trick in the world cup final, three goals in one game against Japan who allowed three goals in the entire tournament up until that point. She is the second person and first woman to ever accomplish that feat. The 5-2 win avenged the U.S. loss in Japan in the 2011 final. It's their first world title since 1999 and now they have done what no other country has done. Win three overall.
LLOYD: I have dedicated my entire life to this game. To this moment. Everything has come second in my life. My fiance and friends and my family. This is it for me. If you are going to do something, and you want to be the best you can be, you've got to sacrifice so much. And for me, I won't trade it for anything in the world.
ALEX MORGAN, USA FORWARD: I feel this team is so deserving of this world cup. It was such a devastating loss last time. I'm really happy for everyone that gets to enjoy it.
WIRE: Now, the patriotism is still flowing fast and furious following last night. President Obama even tweeted a shootout to the champs. What a win for team USA Great game, Carli Lloyd. Your country is proud of all of you. Come visit the White House with the world cup soon. U.S. squad was having a blast out this Tweeter account.
They are now lobbying for the federal reserve. They want Carli Lloyd and hope Solo's faces on the $1 bill and $10 bill. They were rightfully so guys because they were both money for the entire tournament. A truly shining moment here. And, and much-needed moment for women's sports in America. Guys, it was truly special to be here and feel the energy and passion. Have to find a way to bottle it up. Guys.
[05:40:00] BERMAN: I have to say, Carli Lloyd, one of only two people in the world history in a hat trick in a world cup. He had a hat trick in 16 minutes. She scored three goals in 16 minutes. It was unreal to watch. Coy, I got to say man, I would have loved to have you are one lucky man. Thanks so much for being with us this morning.
ROMANS: He has the beat of the century this morning.
BERMAN: Oh yes, you know who is going to be on "New Day" after a little bit about 7:00? Carli Lloyd, she will be there along with and Hope Solo joining the team at 7:15 live from Vancouver, do not miss that.
ROMANS: I will not. All right. Donald trump doubling down on his comments on immigration as he faces new criticism within his own party. We got the details next.
(COMMERCIAL BREAK)
ROMANS: New this morning, political plays and fallout for Donald Trump. Fresh round of recrimination for his controversial comments over Mexican immigrants. His Republican rivals are now taking notice. CNN's Sunlen Serfaty has more on the White House.
SUNLEN SERFATY, CNN 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 Trump's comments, but also trying to push back a little more aggressively indicating that this is hurting the Republican party.
[05:45:00] We saw Jeb Bush over the weekend in New Hampshire saying he is personally offended by Trump's comments given his wife was born in Mexico and calling it rude language. Other candidates ramping up their criticism of Trump as well.
RICK PERRY, 2016, PRESIDENTIAL CANDIDATE: Donald Trump does not represent the Republican party. I was offended by his remarks. Hispanics in America and Hispanics in Texas from the Alamo to Afghanistan have been extraordinary people and citizens of our country and state. They have served nobly. And to paint with that broad a brush that Donald trump did. He's going to have to defend those remarks.
MIKE HUCKABEE, 2016 PRESIDENTIAL CANDIDATE: Honestly, Donald Trump needs no help from Mike Huckabee for publicity. He is really doing a really good job at that.
SERFATY: Meanwhile Donald Trump is not backing down. In fact, he seems to be doubling down continuing to defend his remarks.
DONALD TRUMP, 2016 PRESIDENIAL 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 cannot have a country without borders. And people, coming in and some of those people and I read it even yesterday, a huge article about the tremendous crime taking place. One of the most dangerous places on earth. And I bring that up. All of a sudden I'm a bad person.
SERFATY: And all of this back and forth comes at a time when many Republicans are eager to reach out to Hispanic voters and bring them into their party. A big reason why many candidates are speaking out more forcefully noting that it could be damaging to the party's brand.
John and Christine?
ROMANS: All right, Sunlen. Thank you. Republican candidate and former New York Governor George Pataki is in New Hampshire today and he is going to host an immigration policy round table with reporters in Manchester. Pataki will address a letter. He sent out Friday fellow GOP candidate asking them to denounce Donald Trump over his harsh comment about Mexican immigrants.
A new round of deadly violence in Chicago. Police report 33 shooting and more than three dozen people injured. Seven people killed over this holiday weekend. One of the death seven year old boy, Amar'e Brown, just was fatally shot while celebrating the 4th with his family at a prayer vigil, Sunday, the family friend spoke about the tragedy.
MICHAEL SINNGLETON, FAMILY FRIEND: All of you will be out on another corner next week saying exactly what I'm saying. I'm tired of news conferences and tired of talking about it. Until we make a better decision as a community and city, this is all that will happen.
ROMANS: Police say, the father is a known gang leader with a lengthy rap sheet, he was the intended target of the shooting. They say the father of Amare Brown is not cooperating with the investigation.
All right. The pope in South America this morning set to speak before million people. What he is expected to talk about and the topic is drawing controversy. That's next.
[05:50:00] (COMMERCIAL BREAK)
ROMANS: All right. This morning, Pope Francis is in Ecuador to kick off a weeklong 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. So what's on his agenda, CNN's Rosa Flores joins us now from Ecuador with the latest.
ROSA FLORES, CNN CORRESPONDENT: This is his homecoming of sorts for Pope Francis he was born in South American country. He knows the history, he knows the language and in the 22 plus speeches he is expected to deliver, he will be speaking in Spanish. A lot of people waiting to hear what he has to say. He is known for making controversial comments. But his first stop is Quito, Ecuador.
Where he was welcomed at the airport by dignitaries, by the mayor and 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 Paraguay where he is expected to deliver some of the same messages of peace and democracy.
ROMANS: All right. Rosa, thank you for that. A royal christening in a country that has a queen and princes and princesses, fourth in line England for the thrown Princess Charlotte was christened in a private ceremony on Sunday. Her parents, Prince William and Duchess Catherine have been known to keep things more low key and only the closest of friends and family were among the guests, but they did invite the public to a field outside the church to share their well wishes. That is a 50-year-old pram there. We call it a stroller. Anyway, best wishes. 53 minutes past the hour.
A country collapsing on the other side of the world. What Greece could mean for your 401(k). I've got that next.
[05:55:00] (COMMERCIAL BREAK)
ROMANS: All right. Happy Monday. I'm Christine Romans. Stocks around the world down after Greece voted no to Europe's latest bailout offer. U.S. stock futures are down.
One exception here this morning. China stocks, those stocks have been swinging wildly. The Chinese government is propping up the stock market there. Spending an awful lot of money propping up the stock market in China. A lot of uncertainty this morning with Greece's in Eurozone that
is the big story. Here's why Greece is no vote matters to your money. First, your 401(k) could nose dive. U.S. stocks had the worst drop of the week last week when
it became clear Greece would miss a big payment to the IMF. That could happen again, now, experts telling us don't panic too much. They say a downturn would only be temporary.
Greece is a tiny economy. U.S. investors have limited exposure. Next. European travel could be a lot cheaper. Euro plunging against the dollar. That means every dollar saved for European vacation will go farther. That is bad news for American businesses who sell abroad because their products more expensive.
And finally, with the future of the Eurozone, the federal reserve may be reluctant to raise rates in the fall. Those are the ways Greece's drama may affect you. An your money.
All right. Team USA back on top. Winning the world cup, a stunning victory. "New Day" picks up the story right now.
BERMAN: The U.S. women, they are champions of the world.
LLOYD: Being able to be a world cup champion is an unbelievable moment.
BERMAN: The Greeks vote no on a bailout.
ROMANS: Country's finance minister is resigning. Can Greece remain part of the Eurozone?
UNIDENTIFIED MALE: At this point it appears to be a random shooting incident.
UNIDENTIFIED MALE: The suspect is undocumented immigrant and repeat felon.
UNIDENTIFIED MALE: Did you shoot Kate Steinle?
ANNOUNCER: This is "New Day" with Chris Cuomo, Alisyn Camerota and Michaela Pereira.
CAMEROTA: And good morning everyone, welcome to your New Day. It's Monday, July 6, 6:00 in the east. Chris Cuomo is off this morning. John Berman is joins us on an exciting morning.
BERMAN: Oh yes.
CAMEROTA: Because it was a thrilling night for the team USA. The U.S. women's soccer team are world cup champs after dominating Japan in a record setting game. After avenging the loss heart breaking loss for the same Japanese team four years ago.
PEREIRA: I love we can use the word avenge. Carli Lloyd scored the first ever hat trick in the fairy tale rematch. All three goals coming in the first 16 minutes as team USA pulled away. CNN's Coy Wire is live in beautiful Vancouver with the historic win. I'm sure nobody else has gotten a bit of sleep in Vancouver tonight.
COY WIRE, CNN CORRESPONDENT: Team no sleep. You know how we do it. Outstanding, commanding, demanding, it was an intriguing interpretation. Team USA did what no other country has done, win a third women's world cup title.
