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Greek Prime Minister Ready to Compromise; Greek People Await Next Step; Mexican President Vows to Recapture "El Chapo"; Iran Nuclear Deal Is Close; Eurozone Leaders Hold Marathon Talks on Greece Bailout; Manhunt Under Way for Escaped Mexico Drug Lord "El Chapo"; Mexico's Volcano of Fire Erupts as Australia Hit by Cold Snap; Novak Djokovic Defeated Roger Federer at Wimbledon; Europe Reportedly Reaches Agreement on Greek Bailout. Aired 2-3a ET

Aired July 12, 2015 - 02:00   ET

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

[02:00:09] MAX FOSTER, CNN ANCHOR: 15 hours and countless headaches and no bailout deal between Greece and European lenders. We're watching closely as the talks continue.

ROSEMARY CHURCH, CNN ANCHOR: Plus, the Mexican president is demanding answers after the leader of one of the world's most powerful drug cartels escapes from prison for a second time.

FOSTER: With cautious optimism, diplomats from Iran and six world powers say they could be close to a deal on Tehran's nuclear program.

Hello, I'm Max Foster. Welcome to our viewers in the United States and around the world.

CHURCH: And I'm Rosemary Church. Good to have you here for another week. Thanks for joining us, everyone. This is CNN NEWSROOM.

FOSTER: Starting with the Greek financial crisis, European finance ministers are calling for economic reforms. And the Greek prime minister says he is ready to compromise. The emergency talks on the terms of a new bailout are contentious and now into their third day.

CHURCH: The latest round of talks has been going on for more than 14 hours with a few breaks. A leaked document outlines from the finance ministers outlines the terms for Greece to receive an estimated $96 billion over the next three years. They include spending cuts and tax hikes to be enacted this week.

FOSTER: Richard Quest is following all the developments in Brussels and has details on what the two stumbling blocks at this point.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN HOST, QUEST MEANS BUSINESS: There are two big issues that we understand. First, the specific mention of the IMF involved in any future negotiations, any future bailouts, any future arrangements. The Greek government loathes the IMF. It wants nothing to do with them. And even though it owes them 1.6 billion Euros from a recent default, it doesn't want a mention of them. The second big issue is the privatization fund. Under the agreement,

it is suggest or put down that up to 50 billion Euros of assets are put into a special fund administered and managed by the Greeks but, which is sold off and the debt privatized and the money used to pay down debt. The Greeks say 50 billion Euros is too much and they a smaller number, maybe 17 billion.

Those are two major areas of contention that could drive this over the edge.

One point to note. You mentioned about the temporary Grexit clause. It was the last clause in the whole document. We believe that clause may now have gone. There was such opposition. And it was a German clause. Other people also felt it was wrong and that may now have gone.

If they do some form of deal, never mind what the long-term $100 billion lending is going to look like, they have to do a short-term lending, a so-called bridge loan, that will see Greece over to get past July 20th when it has to pay money back to the ECB and in August. They are trying to sort it out. We knew it was going to be difficult. We had no idea it would be 14, 15, 16 hours difficult.

But listen to Angela Merkel when she arrived all those hours ago before the meeting began.

(BEGIN VIDEO CLIP)

ANGELA MERKEL, GERMAN CHANCELLOR (through translation): The situation is extremely difficult. On the one hand when one thinks of the economic situation in Greece and how it has deteriorated over the past few months, but on the other hand, because the most important currency has been lost and that is trust and the reliability. That means we will have tough decisions today and there will be no agreement at any price.

(END VIDEO CLIP)

QUEST: And that's what we've seen in the last 14 hours, no agreement at any price. We knew going into to this, this was a crunch time, a deadline. Donald Tusk said it. Jean-Claude Juncker said it. So they had their own credibility on the line.

And one other very important point to mention, time's running out for Greece. The banks are running out of money. The economy has just about come to a stand still. So they need a deal as well preferably coming out of today's meeting.

(END VIDEOTAPE)

CHURCH: Richard Quest reporting there.

In the meantime, the Greek people are waiting to hear what the next step will be. Of course, the banks have been closed for two weeks and cash withdrawals are restricted.

Elinda Labropoulou joins us from Athens with the latest.

Elinda, this has been a tough waiting game for the people of Greece and a very long way from the referendum that saw 60 percent of the voters saying no to austerity measures. So what's been the reaction so far in Greece to the realization that they will need to confront some pretty tough reforms?

[02:05:08] ELINDA LABROPOULOU, CNN CORRESPONDENT: So far, Greece is a little bit numb about what's been happening in Brussels. We have been hearing the talks have been going on for so long and they are difficult talks. And all this is happening while the banks have been closed for two weeks and with no clear sign when they are going to reopen. We are waiting for a signal of a possible deal so the ECB when it convenes today it can possibly decide to raise the liquidity. And this is a very crucial issue for the Greeks.

And at the same time, what they are seeing in Brussels is these really, really tough negotiations that are likely to bring far more austerity to Greece if a deal goes through.

I'll show you a few headlines this morning. And although we don't have a final deal but to understand what is happening in Greece. We have this newspaper saying, "Order, sink the country." This is one headline in Greece this morning. We are looking at another one that is talking about a monster bailout at the gate. And finally, I'm going to show you this, which is one of the strongest headlines we've seen, which is talking about Greece in Auschwitz. You can just understand the tone of how this is playing out in Greece at the moment. I mean, politically, Mr. Tsipras has been strengthened by this referendum and by this vote in parliament. But when confronted with such harsh measures, it is not clear what support he may be getting in parliament and certainly even from his own M.P.s.

CHURCH: And it's interesting, too, Elinda, we're hearing that the Grexit clause may have been removed from that four-page document, but two key sticking points remain. And we heard Richard talking about those points. What is being said about those particular challenges and how this is likely to play out?

LABROPOULOU: Well, from the very beginning, Greece did not want the IMF involved in the country. This is back in 2010 when the first bailout was decided. It wanted to keep it a European affair. We understand, until the very last minute, Greece has been pushing for this to go through the ESM without the International Monetary Fund being involved. We are starting to hear reports from Brussels that this issue has been decided and that the IMF is to stay in Greece, but these are unconfirmed reports. We have to wait and see what happens with that.

And the whole idea of this privatization fund involving 50 billion Euros of state assets, this has not gone down well at all in Greece. It has been making headlines obviously here and making people feel like the country is really losing control of its own assets, effectively, being put in a situation that everything is monitored so closely. This will be the problem in Greece. Even if the deal goes through, even if we have a deal out of Brussels in the next hours, it will be extremely difficult for the Greek government to bring this home and see it voted in, in a number of days, as it is expected to.

CHURCH: Elinda Labropoulou, reporting live from Athens.

We will watch very closely. And as soon as we hear progress in those talks, we will bring it to our viewers live.

Many thanks to you.

FOSTER: To Mexico now, where the president of the country vows to recapture the head of one of the largest drug cartels. A massive manhunt under way for Joaquin Guzman, also known as "El Chapo."

CHURCH: Mexican authoriies say Guzman escaped Saturday through a lighted and ventilated tunnel under his prison cell. The tunnel stretched for more than a mile or 1.5 kilometers and ended inside a half-built house outside the prison walls. It is the second time that Guzman escaped from prison. The first time he eluded authorities for more than a dozen years before being captured.

CNN's Sara Ganim has more on the infamous drug lord.

(BEGIN VIDEOTAPE)

SARA GANIM, CNN CORRESPONDENT (voice-over): They call him El Chapo or Shorty for his small 5'6" frame, but his legend is enormous. And now the world's most-powerful and deadly drug trafficking kingpin has broken out of prison in Mexico again.

Joaquin Guzman is the notorious drug boss who runs the Sinoloa Cartel widely believed to be the biggest supplier of heroin and cocaine in the United States.

Authorities say, this time, he escaped through a hole in the shower area of the Altiplano Prison.

UNIDENTIFIED MEXICAN OFFICIAL: The tunnel leads to a vertical pass about 10 meters deep and had a ladder and stairs. This tunnel has PVC tubing of ventilation and lighting.

GANIM: His latest escape adding to El Chapo's legend. In Mexico, he is a towering figure of intrigue. He is the subject of books, songs --

(MUSIC)

[02:10:08] GANIM: -- and folklore. And he is wanted on both sides of the border. In the U.S., on federal trafficking and organized crime charges. His cartel, notorious for tunneling drugs under the U.S./Mexican border. In fact, U.S. officials wanted him extradited, fearing exactly what happened, that he would pull off another escape.

REP. MICHAEL MCCAUL, (R), TEXAS: El Chapo Guzman escaped captivity in prison in 2001. He has 12 years left to his sentence. But I'm concerned about that happening again in Mexico.

GANIM: Born into a poor family in the Sinaloa State when the drug trade was evolving, Guzman amassed a powerful empire, one he continued running from behind bars after his first arrest in 1993. His reputation only grew as he spent 13 years on the run after escaping from prison in 2001, sneaking out in a laundry cart in a plot that allegedly cost him $2.5 million in bribes. He was caught and rearrested just last year at this resort in Mazatlan. Now a massive manhunt for the leader is underway yet again.

Sara Ganim, CNN, New York.

(END VIDEOTAPE)

FOSTER: Authorities are now questioning 18 prison workers in connection with the escape.

CHURCH: Earlier, we spoke to Ioan Grillo for some insight into Guzman's breakout. He is the author of "El Narco, Inside Mexico's Criminal Insurgency."

(BEGIN VIDEO CLIP)

IOAN GRILLO, AUTHOR: I thought he couldn't possible escape but he has. When we are looking at the mechanics of it, a 1.5 kilometer tunnel with lights and air, there had to be some inside information to find out the map of the prison. And I think the question really is how far up did the corruption go? Was it simply a couple of guards perhaps who were bribed or did it go higher up the chain? One of the problems always is the issue is corruption. He survived for so long because he was able to bribe many police and many officials and had many people in his community who supported him. He comes from a poor area where the drug traffickers are seen as heroes by many people, whereas these are villains taking heroin, cocaine, crystal meth and marijuana by the ton load to Americans. For many people in these towns, they are providing employment and giving money. That's one of the things that helps protect him. So if he can make it back to his homeland, the mountainous area, it could be very, very tough to catch. However, I think it could be very key. The first 48 hours, wherever he is, if he's in the same town by the prison or here in Mexico City, it could be very key if they are able to catch up with him.

(END VIDEO CLIP)

FOSTER: We'll have more on Joaqin "El Chapo" later in the show, including a rare look inside one of the drug lord's safe houses.

CHURCH: After more than a year of tense negotiations, a major announcement could come from the Iran nuclear talks in Vienna. The details still to come.

FOSTER: Plus, Malala Yousafzai turns 18 and the education activist celebrated her big day by giving to others. We'll show you how.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

[02:15:] MALALA YOUSAFZAI, NOBEL PEACE PRIZE WINNER: Today, on my first day as an adult, on behalf of world's children, I demand our leaders, we must invest in books instead of bullets. Books, not bullets will pave the path to our peace and prosperity.

(END VIDEO CLIP)

CHURCH: Words from Malala Yousafzai on the day she turned 18. The Nobel Peace Prize winner celebrated her birthday in an extraordinary way. She opened a school in Lebanon for Syrian refugee girls. She says she chose Lebanon because the voices of Syrian refugees need to be heard.

(BEGIN VIDEO CLIP)

YOUSAFZAI: In Lebanon, especially, they're asking the government to give formal camps to these people and to -- in Lebanon, the parents are not allowed to do job to earn money and the parents are forced to send their children to earn money and that's why the children suffer from child labor and most of them cannot go to school. And that is one of the main issues that both the countries are facing. And I'm hopeful of meeting the prime minister of Lebanon. I will raise this issue to make sure the children, the people are not ignored.

(END VIDEO CLIP)

FOSTER: The school can host up to 200 girls, aged 14 to 18. When asked what advice she gave to the children, she said, "They don't need any. They know how important education is for them."

Diplomats from Iran and six world powers say they may be very close to a deal on Tehran's nuclear program. But we have heard it before, haven't we.

CHURCH: Yes.

FOSTER: We are hours away thought from a self-imposed deadline.

CHURCH: For more than a year and a half, the diplomats have been locked in contentious talks. Now Iranian negotiators are examining a 100-page document, the possible precursor to that elusive deal.

FOSTER: On Sunday, U.S. Secretary of State John Kerry expressed cautious optimism that a deal is imminent.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: A very good meeting. Positive. I think we're getting to some real decisions. So I would say we have a few tough things to do. I remain hopeful. Hopeful.

(END VIDEO CLIP)

FOSTER: So what would a final agreement with Iran look like and why has it been so difficult to negotiate.

CNN's Fareed Zakaria put those questions to two Iran experts Sunday who say the time for a deal is now. (BEGIN VIDEOTAPE)

JOE CIRINCIONI, PRESIDENT, THE PLOUGHSHARE FUND: And this deal is coming. And the climax will likely be tomorrow. If it doesn't happen now, we'll have a serious case of negotiations interruptus. It's a complicated document, about a hundred pages, and they are now in the final stages making sure the prases are right and the commas are in the right place. They don't want any mistakes at this late stage. And there are still a couple of major issues yet unresolved but most of the serious big issues that have blocked the deal have all been settled.

[02:20:16] FAREED ZAKARIA, CNN HOST, FAREED ZAKARIA, GPS: Inspections of military facilities will be allowed?

CIRINCIONI: We will have inspections of Iranian military facilities. They crafted a way to do this with a little notice and a little bit of management of the inspectors but we'll be able to go where we need to go when we need to go there.

ZAKARIA: The sanctions will be lifted, not all at once but sequentially?

CIRINCIONI: And this is what is holding up the negotiations. What is exactly the sequence? What does Iran have to do and what is lifted, particularly on the difficult issue of the arms embargo, prohibiting arms goig in or out of Iran. That is not going to be lifted right away. But down the road, as Iran performs, those restraints will be taken off.

ZAKARIA: Iran's ballistic missile program, which is unrelated to its nuclear program, Iran says that should have no bearing and that embargo should be lifted. What's going to happen?

CIRINCIONI: Everything I hear is that the sanctions will remain on the ballistic missile program as they will for the terror and human rights violations. So not all of the issues with Iran are settled. This is just the one on the nuclear deal, to shrink-wrap this program and shrink it down to a manageable size and then wrap it in a verification monitoring system.

ZAKARIA: Karim, explain what is going on in the negotiations. I notice that Zarif keeps having to go back to Tehran. Kerry doesn't keep coming back to Washington. What that suggests to me is that the Iranians are having trouble coming to yes. The supreme leader made statements saying no military -- no inspection of military facilities at all, and all sanctions will have to be lifted immediately. This is an odd way to prepare your public for the deal because those things aren't going to happen. What is going on inside Iran?

KARIM SADJADPOUR, SENIOR ASSOOCIATE, CARNEGIE FOUNDATION: I think this is a difficult time for Iran's supreme leader because he has to resolve the prerogatives of the Islamic Republic, which has always been based on resistance against the United States with the economic needs of the Iranian nation. This is a country which is really experiencing a perfect storm economically. They are losing hundreds of billions of dollars as a result of the sanctions at a time when the oil prices have collapsed and they are spending billions of dollars each month trying to sustain the Assad regime in Syria. So I think that, as Joe said, this deal is likely going to happen, but I think it's a very bitter pill for the supreme leader to swallow.

(END VIDEOTAPE)

CHURCH: Some critical analysis there.

And despite the high hopes, diplomats involved with the talks have pointed out that the agreement has not yet been reached. An anonymous German official summed it up by saying, quote, "Everything could still fail."

FOSTER: The negotiations have been fraught with disappointment, frustration and, at times, anger as well.

CNN's interantional correspondent, Nic Robertson, takes us through the process that led to these final discussions.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): 21 months, a roller coaster. Disagreements flared, deadlines come and gone. It began in Geneva, late 2013, signing an agreement to reach an agreement. April this year, the Swiss Alps, first outlines appear. Iran agrees. Cut centrifuges, reduce nuclear stockpiles and reach a full deal June 30th. But a week before, a curveball. Iran issues red lines. They're supreme leader demands limits on inspections, full sanctions relief.

U.S. Secretary of State John Kerry flies to Vienna, June 26th. Talks begin almost immediately falter. Kerry's counterpart, Iranian foreign miister, Mohammad Zarif, flies back to Tehran. Returns on the eve of the deadline. Clear, all is not well. Talks extended a week to July 7th.

KERRY: We believe we're making progress and we're going to continue to work because of that.

ROBERTSON: But the night before the new deadline, tempers flare.

FEDERICA MOGHERINI, E.U. HIGH REPRESENTATIVE: We touched the difficult things, which is sometimes painful.

LAURENT FABIUS, FRENCH FOREIGN MINISTER (through translation): The Iranian nuclear talks are, as we have predicted, not easy. There have been periods of tension but the negotiations continue.

ROBERTSON: Storm clouds gathered, another deadline come and gone.

KERRY: You can't wait forever for the decision to be made. We know that. If the tough decisions don't get made, we are absolutely prepared to call an end to this process.

ROBERTSON: Rain lashed Vienna, talks resumed slowly. [02:25:00] KERRY: We have a couple of very difficult issues and

we'll be sitting down to discuss those in the very near term.

ROBERTSON: Saturday, the next day, Kerry, in seven meetings, two with the Iranian foreign minister. Then, Sunday, hints of success. Kerry on his way to church. The secretary of state's 17th day at the talks, the longest he has been in one place on any foreign policy deployment. He shouts to reporters, "We are getting to some real decisions."

Nic Robertson, CNN, Vienna, Austria.

(END VIDEOTAPE)

CHURCH: And this just in to CNN. A woman in the United Arab Emirates has been executed for fatally stabbing an American schoolteacher last year. That is according to the official state news agency. 30-year- old Ala al Hashimi (ph) was sentenced to death two weeks ago for killing Ebolia Ryan (ph) in an Abu Dhabi mall bathroom. Officials called it a personal terrorist attack.

FOSTER: Hashimi (ph) also planted a bomb outside an Egyptian-American doctor's home, but it didn't detonate. As of right now, we haven't been told how Hashimi (ph) was executed.

CHURCH: The gaming industry is mourning the loss of a self-described fellow gamer. Nintendo has announced the passing of its CEO, Satoru Iwata. He died of cancer Saturday at age 55.

FOSTER: Satoru rose through the ranks from programmer to president and then CEO of Nintendo. He once told a conference of game developers, "On my business card, I am a corporate president. In my mind, I'm a game developer, but in my heart, I'm a gamer."

As emergency bailout talks push forward, Greek's main opposition party weighs in.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: This is about the Greeks. This is about whether my son is going to have a different kind of life, whether his identity is going to be European. This is about people's lives.

(END VIDEO CLIP)

FOSTER: Coming up, looking towards Greece's political and financial future.

(COMMERCIAL BREAK)

[02:30:36] MAX FOSTER, CNN ANCHOR: Welcome back to our viewers here in the United States and around the world. I'm Max Foster.

ROSEMARY CHURCH, CNN ANCHOR: I'm Rosemary Church. It's time to check the main stories we are following this hour.

FOSTER: Eurozone leaders are holding marathon emergency talks on Greek bailouts. Europe insists that Greek reforms, that include spending cuts and tax hikes, become law this week before formal talks on a third bailout can begin. A leaked draft document estimates that Greece needs as much as $96 billion over the next three years.

CHURCH: Mexico's president vows to recover Joaquin "El Chapo" Guzman, the boss of one of the world's most powerful drug cartels. Mexican authorities say that Guzman escaped from a maximum security prison on Saturday through a hole in his cell that led to a tunnel. Investigators are questioning 18 prison workers.

FOSTER: Iran and six world powers may soon strike a deal that could bring the country sanctions relief in exchange for curves on Tehran's nuclear program. U.S. Secretary of State John Kerry sounded cautiously optimistic on Sunday morning. A high-level Iranian said 99 percent of the issues have been resolved.

Returning to the emergency Greek bailout talks, in the latest terms put forth by the finance ministers, Isa Soares is in Athens. And earlier, she talked with a spokeswoman for New Democracy, Greece's main opposition party, about what is ahead.

(BEGIN VIDEOTAPE)

ANNA MICHEL ASIMAKOPOULOU, SPOKESWOMAN, NEW DEMOCRACY: My party has made it very clear that we are willing to step up to the plate and support Mr. Tsipras. We put aside all our criticism and everything we have to say about how he handled things. So we're here to help. Insofar as his party and group are concerned, he has to figure that out for himself.

(CROSSTALK)

ISA SOARES, CNN CORRESPONDENT: There has been major dissent in his party.

ASIMAKOPOULOU: More dissent.

SOARES: Are we talking a reshuffle within his party and then?

ASIMAKOPOULOU: He has options. One of them is a reshuffle.

SOARES: Are you thinking broader coalition in the next few days?

ASIMAKOPOULOU: That depends on how the vote goes. I'm fairly confident that the opposition can cover whatever loses he has for the next few days at least and then we'll have to see how it goes.

SOARES: It's possible?

ASIMAKOPOULOU: Yes, it is.

(CROSSTALK)

SOARES: You have seen the leaked documents. You've seen them as well as we have.

(CROSSTALK)

SOARES: What do you make of them? Do they go too far?

ASIMAKOPOULOU: Well, I can tell you that I heard Chancellor Merkel on her way in saying we need to rebuild trust. I understand that. Trust is part of the European currency. But so is honesty. And I think we are seeing today that there are people with a different agenda and we are also seeing there are people that feel they should have sort of a sense of they should have retribution. And certainly solidarity is what Europe is based on. And retribution or punishment and certainly humiliation of a nation and its people are not part of that. I'm hopeful that the voices in Europe that recognize that will also step up to the plate and meet us so we have a deal that is viable and realistic. That's the important thing.

SOARES: So not much solidarity coming from Europe from the voices we are hearing. But what about this other measure, option on the table, supposedly on the table which is temporary Grexit, temporary Grexit. Is that even possible? Are you offended by that?

ASIMAKOPOULOU: I don't know if that is possible. I didn't hear very many people supporting that. It just doesn't sound like anything I've heard before and it doesn't sound realistic. Frankly, we are at the end of the line here. We're either out or staying in. We want to stay in. I know you've seen this. This is about people's lives. This is about the Greeks. This is about whether my son is going to have a different kind of life, whether his identity is going to be European. This is about people's lives. Yes, we want to stay in and, yes, we are willing to pay the price and, yes, we have done things wrong, but two wrongs don't make a right. So we expect Europe to answer back the way they should.

SOARES: What's your biggest concern, finally, for next week? A lot of people will be worried about whether there is cash at the ATMs. Is that the biggest concern this week?

ASIMAKOPOULOU: My concern is getting this wrapped up as quickly as possible, making sure there is a deal, and making sure that the political system reorganizes itself in a democratic way so it can deal with. Because stability, political and financial, is the key to us getting back to what's normal in the banks or in our daily lives. I'm anxious to get this done as quickly as possible. And I can tell you my party will do whatever it can in that direction, putting Greece above everything else.

[02:35:26] SOARES: We know that Greeks want -- desperate for some sort of stability here.

ASIMAKOPOULOU: Absolutely.

SOARES: Anna Michel Asimakopoulou, always great to see you.

ASIMAKOPOULOU: Thank you. Thank you very much.

(END VIDEOTAPE)

CHURCH: Isa Soares there.

Well, as larger forces decide their fate, thousands of kilometers away, some Greeks say they are increasingly frustrated by the whole process. They say European leaders have something to protect but it's not them.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: (through translation): But now I feel a little bad, not with the prime minister but with Germany's stance. This minister, I don't know what he is trying to achieve.

UNIDENTIFIED FEMALE: (through translation): It is obvious there is a lack of democracy and we are dealing with partners but with people who care only about profit and who are uninterested in people. Of course, they are intransigent. They are awful and they are also to blame for the situation the country is now in.

UNIDENTIFIED MALE (through translation): Recently, he's been offering everything. He's crossed all those so-called red lines. He wants us to exit this crisis, even if we are the victims for years now.

(END VIDEO CLIP)

CHURCH: And there is much more on the bailout talks and possible Greek exit from the Euro on CNN.com, including a special report, "Greece in Crisis."

FOSTER: Pope Francis is on his way back to the Vatican after a week- long trip to South America. He left Paraguay on Sunday where thousands gathered in the streets to catch a final glimpse of him.

CHURCH: And one of his final events was a huge rally with young people just off the banks of the Paraguay River. About 200,000 youths were expected to attend.

FOSTER: Earlier, the pope met with residents at a shanty town. He told them he had been looking forward to seeing them on their land. That was significant because, like many of South America's poorest areas, these people are squatters whose homes are threatened by developers.

Now, ordinary looking homes that are actually safe havens for notorious drug cartel leader. See inside El Chapo's secret hideaways and tunnels that helped him evade police the first time he broke out of prison.

CHURCH: And Mexico's Volcano of Fire erupts. Why many fear things will only get worse.

We're back in a moment.

(COMMERCIAL BREAK)

[02:40:] FOSTER: We are following a developing story out of one of the world's busiest airports. A group of climate change activists have shut down one of the runways at Heathrow's airport. The group known as Plane Stupid organized the protest against the airport opening more runways. Demonstrators are chaining themselves to gates and holding banners on the tarmac as well and tweeting. More delays can be expected throughout the day.

Always a concern of a knock-on effect because of all the transit flights that go through there.

CHURCH: They seem a happy bunch, don't they?

FOSTER: I think they are pleased with what they achieved.

CHURCH: Yes.

FOSTER: Plane Stupid, their name.

CHURCH: An interesting name, too.

All right, well, a manhunt is underway for the head of one of the world's most powerful drug cartels. Mexican authorities say Joaquin Guzman, also known as El Chapo, escaped from his prison cell Saturday through a secret tunnel.

FOSTER: Tunnels are also how Guzman eluded authorities for 13 years after another prison break. There were a network of tunnels linked to safe houses used by the drug lord.

CNN's Nick Parker toured some of those hideouts after Guzman's arrest last year.

(BEGIN VIDEOTAPE)

NICK PARKER, CNN CORRESPONDENT (voice-over): On this quiet residential street in the Sinaloa state capital, with a school just across the street, is one of five Chapo Guzman safe houses. We're going inside to take a look.

Before entering, cameras and reinforced steel doors reveal the priority of security.

I think one of the first things that hits you when you come in is how modest and basic it is, a small kitchen, and some of the bedrooms are dingy. The Marines tell us this is part of his strategy, to have very modest accommodations so he could hide in plain sight.

In almost every bedroom of the house, there are two TV screens, one for security and one for TV. But when you go into the bathroom, the picture of a normal house really does transform. Beneath this bathtub, a secret tunnel.

If you climb down the steps you climb down the tunnel. You can see it's been quite carefully constructed out of wood. You have to crouch a little bit but you are mobile. And there is an electricity system running throughout it. The nearest other safe house from here is three kilometers in this direction. The constructed part of the tunnel ends here. And if you go through this door, you find yourself in the sewage system of the city, an ideal escape route.

And the tunnel system comes out here in another safe house just down the road. And as you can see, is it a very similar setup to the previous one.

In all the houses evidence of life suddenly suspended. The minutia is interesting, a child's slide, Christmas decorations, and a fondness for mayonnaise.

This is where Chapo Guzman escaped from when he was being pursued by Mexican Marines. They broke down this door and found they had missed him by eight minutes.

And this is where he fled to, though this bedroom and into this bathroom where, as you can see, there is another escape hatch underneath this bathtub.

Mexican Marines tell us they discovered this entire network of underground tunnels and safe houses when they arrested the head of Chapo Guzman's security and he gave them this information. It once again underlines the very central role of intelligence in the arrest of one of the world's most-wanted men.

Nick Parker, CNN, Mexico.

(END VIDEO CLIP)

FOSTER: Fascinating to see that.

CHURCH: Unbelievable.

FOSTER: U.S. presidential candidate, Donald Trump, has made headlines again on Sunday with comments about the escape of El Chapo. In a statement, he said, quote, "Corrupt Mexican officials obviously let him go a second time. He's possibly in the U.S. and his drugs and drug dealers freely cross into the United States through our pathetic border. This is just one example of the many instances of Mexico taking advantage of the United States."

CHURCH: Trump's campaign has been full of incendiary comments about undocumented Mexican immigrants. Another Republican presidential candidate, Senator Lindsey Graham, told CNN that party leaders should reject Trump's views. Take a listen.

(BEGIN VIDEO CLIP)

[02:45:07] SEN. LINDSEY GRAHAM, (R), SOUTH CAROLINA & PRESIDENTIAL CANDIDATE: I think he's hijacked the debate. I think he's a wrecking ball for the future of the Republican Party with the Hispanic community and we need to push back.

(END VIDEO CLIP) CHURCH: Trump's comments about Mexicans prompted NBC and Univision to cancel their broadcast of the Miss USA pageant on Sunday night. The pageant is part owned by Trump. Instead, it was streamed online and aired on the independent Reelz Channel.

FOSTER: Mexico's so-called Fire Volcano has forced hundreds of people to flee their home. Smoke and lava spewed over the weekend raining down on villages. One community was smothered in about five centimeters of ash.

CHURCH: Unbelievable. And the volcano is one of Mexico's most active. It blew its top late last week and shows no signs of quieting down. Authorities fear the eruption could become the biggest in a century.

In Australia, it's a much different story. Most of the southeast is in the grip of a cold snap.

Meteorologist Pedram Javaheri joins us with the details.

Incredible temperatures coming out of Australia.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Yeah, incredible temperatures. A lot of snow for some areas. A ski report in New South Wales actually had 70 centimeters come down in the last few days. But the coldest place in the world, minus 80 Celsius in Antarctica. A direct impact around portions of Australia. Some of the cool air filters to this region. Minus 80 is minus 112 Fahrenheit. But the storm systems blazing through. Winds up to 100 kilometers per hour in Adelaide and power outages as well. But look at the footage out of areas in New South Wales. And you get up to 600 meters high around Orange some accumulating snow and the perspective continuing with what people saw here. Not a significant accumulation for some of the towns but blizzard-like conditions and the folks coming outside to enjoy some snow. The coldest day in Brisbane in two years and the coldest days in Melbourne in five years.

Here's the trend for the storm system moving out of the region will keep it cold the next couple days. This is the Antarctic vortex shades of the United States a year and a half ago.

But here is the perspective. Melbourne, should be closer to 14 this time of year. And a gradual warming trend as well. In the Pacific, we are watching a multitude of tropical features one of which is going to impact portions of Japan, Thursday to Friday potentially.

I leave you with video coming out of Atlanta, Georgia. We captured this ourselves a couple hours ago. 300 lightning strikes in the northern suburbs of Atlanta. A pretty impressive sight at the storms roll through portions of the southern U.S., guys.

CHURCH: Great images there.

FOSTER: Yeah, stunning.

CHURCH: Yeah. Thanks.

FOSTER: Thanks, Pedram.

And U.K. got away with it this weekend with Wimbledon, didn't it?

CHURCH: Yeah.

FOSTER: Normally, raining. But we got away with it this time. The world's oldest tennis tournament has crowned its winners in the sunshine. After the break, we'll take a look at all the highlights from this year's Wimbledon tournament.

CHURCH: Plus, a backwards driver turns heads on the roadway, and it was all caught on video. We'll explain when we come back.

(COMMERCIAL BREAK)

[02:50:] CHURCH: Welcome back, everyone. The Wimbledon men's final was a rematch of last year and it ended the same. Novak Djokovic took home his third Wimbledon title and ninth career grand slam after he once again defeated Roger Federer on center court in London on Sunday.

FOSTER: And eating some of the grass, as you can see there.

(LAUGHTER)

Djokovic continued his tradition of eating that piece of grass. He does that every time he wins. We had to explain the picture.

World Sports' Christina MacFarlane has all the highlights on the world's oldest tennis tournament.

(BEGIN VIDEOTAPE)

CHRISTINA MACFARLANE, CNN WORLD SPORTS CORRESPONDENT: A lot of emotion on center court today and a hard-fought win for Novak Djokovic, who has taken his third Wimbledon win.

Here with me is a Wimbledon champion and the host of "Open Court," Pat Cash.

Pat, disappointment for Federer but Djokovic proving why he's the world's number one.

PAT CASH, CNN HOST, OPEN COURT: Yeah, it was disappointing for Federer, particularly after playing Andy Murray and playing the best match in his career. But he had to do that again against Novak Djokovic and he just came up short. He was going for the lines and trying his best to attack at all costs. But the world number one, Novak Djokovic, his returning capabilities and defensive capabilities and the way he served kept Federer at bay. But Federer was the best player in the first two sets. And Federer when it was desperate stage going down two sets to have been all over but he hung in there and won a second set tie breaker. And Djokovic got the break in the third set. And the atmosphere went out of the match as Djokovic cruise -- not cruised through but certainly was in complete control of the match and won in four sets.

MACFARLANE: It's a great day today and a fantastic fortnight. Serena Williams becoming the oldest grand slam winner. What are your highlights for the past two weeks?

CASH: No doubt about it, Serena Williams still rolling on and playing as good as if not better than ever. We lost the defending champion early on. And Nadal lost to Dusten Brown on the center court. That was an exciting match.

And I think in a year's time we will be talking about new names. The names may not be household names now but they are starting to creep in to the Federers and Djokovics. We'll still see them for a while. Roger Federer will be around for a while. But the guard is just starting to change. But it will be 12 months at least before these young guys come in, but they are coming.

[02:55:20] MACFARLANE: They're coming. And we're looking forward to it.

Thanks very much, Pat for your analysis.

CASH: You're welcome.

MACFARLANE: An exciting fortnight. Perhaps the favorite lost here on center court today but Novak Djokovic proving why he is the world's most dominant player, the world number one.

Back to you.

(END VIDEOTAPE)

FOSTER: What a match.

CHURCH: Yeah.

FOSTER: Fantastic.

CHURCH: Absolutely.

And, finally, we want you to check this out. A man and a woman in Los Angeles in an Audi driving in reverse for miles, in fact, on this winding road. The Audi crossed the center line several times and at one point even slowed a motorist and almost hit a pedestrian.

FOSTER: Needless to say, police looking for him.

CHURCH: Yes. But it's hard in America because you have no tags on the front of the car.

FOSTER: Exactly. And we didn't get a shot on the back.

They say the charges he could face just begin with reckless driving.

CHURCH: We want to go our Richard Quest, who is following the talks in Brussels and joins us now. Richard, has there been any progress made?

RICHARD QUEST, CNN HOST, QUEST MEANS BUSINESS: Yes, we do believe that they have reached an agreement. There has been a tweet from the Belgian prime minister, in which he said the agreement has been reached or he just had used one word, "agreement." I'm just looking at the other ones. The Belgian P.M. says, "Agreement over Greece reached." The other tweet from the Cypress prime minister spokesman who says, "A good day for Europe." So after 16 hours of negotiations, we know what the sticking points were. The sticking points were whether or not the IMF should be involved. Greece didn't want them involved. And they basically lost that point. But we don't know the final resolution on the privatization issue. This is the fund where Greece has to put assets into the fund to be privatized to then pay off debts. The Eurozone wanted 50 billion worth of assets. Greece said that was too much and was offering 17 billion. We don't know the final resolution of how that has worked out. It does appear they are all back in the room again. They are at these consultations. They stopped for a while. And as I say, the Belgian prime minister has tweeted one word, "Agreement."

FOSTER: Richard, In terms of any announcements, I guess you don't really have a sense of when they might be. But if there is an agreement, you would expect one pretty soon, right?

QUEST: Absolutely. I mean, look, it's coming up to 9:00 in the morning in Brussels. They have been meeting solidly since 4:00 yesterday afternoon. The meetings have been a variety of full-scale round tables and much smaller quadrilaterals or trilaterals where it been Hollande, Merkel, Tsipras, Donald Tusk. They have all been negotiating face to face.

This has been, according to those who look at these things, this has been the longest E.U. summit on record, continuous summit on record, it's over 16 hours. We can't prove that figure. We asked the E.U. to confirm it. They said it sounds pretty much accurate. Certainly there has been no E.U. council that has gone beyond 8:00 in the morning.

FOSTER: In terms of the final deal reached, Richard, what process do we need to go from here? Presumably, you need parliamentary approval in Greece and Germany, places like that. What is the process you expect to unfold from here?

QUEST: Just let me aside -- do forgive me. We are getting more information as we go along. Joseph Muscat, who is the prime minister of Malta has -- we have already had Belgium saying, "Agreement," and now we have him saying, "Deal - J.M." When you see a tweet from him that says "J.M.," it is a tweet he has personally done. So the Maltese prime minister joining. So I think we are safe to say we have it from more than one source that a deal has been done. The nature, the terms, the extent and the range of that deal, we don't know.

And here we go, get the brass band out and prepare the breaking news. Donald Tusk has now tweeted, "Euro summit has unanimously reached agreement. All ready to go for EMS program for Greece with serious reforms and financial support."