Return to Transcripts main page

CNN Newsroom

A Vote on Greece's Fate; ISIS Hints at More Attacks During Ramadan; Ferry Capsizes in Philippines. Aired 00:01-1:00a ET

Aired July 03, 2015 - 00:00   ET

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

[00:00:01]

NATALIE ALLEN, CNN INTERNATIONAL NEWSROOM HOST: Stark warning on the sheer scale of greatest financial mess as the clock ticks down to a vote to decide the country's fate.

GEORGE HOWELL, CNN INTERNATIONAL NEWSROOM HOST: A week after the deadly attacks in Tunisia and Kuwait, ISIS supporters are hinting at more attacks during Ramadan.

ALLEN: And 38 people died when a ferry capsizes in the Philippines, we will speak with a survivor coming up.

HOWELL: Welcome to our viewers around the world. I'm George Howell.

ALLEN: And I'm Natalie Allen, and you are watching CNN Newsroom. Thanks for joining us.

HOWELL: We start this hour in Greece, the Prime Minister there, Alexis Tsipras is promising that the country's banks will reopen soon. He says the long lines at cash machines have been embarrassing. He blames European creditors.

ALLEN: Adjusting -- their think that that really difficult people. The banks have been closed all week. There are strict limits on how much cash people can withdraw from automatic tellers. Mr. Tsipras is urging Greeks to vote no in Sunday's referendum on the country's financial future.

ALEXIS TSIPRAS, GREEK PRIME MINISTER: If the yes vote wins, the banks will open with a deal which will not be viable, but if that is the decision of the Greek people, either from fear or from pressure or choice we will respect it. If the no vote wins, I assure you the very next day I will be in Brussels and a deal will be signed.

ALLEN: With that vote just days away, now both sides are out in force rallying for and against the referendum. Mr. Tsipras says, a no vote would not mean Greece will leave the Euro zone, a yes vote on the other hand, would almost certainly bring an end to his time in office.

HOWELL: Meanwhile, the International Monetary Fund has a grave warning for Greece. It says the country needs an extra $55 billion over the next three years just to stay afloat. On Tuesday, Greece failed to make a $1.7 billion loan payment to the IMF, and it is really interesting because the vote that they are going to have on Sunday was on the bailout. The bailout does not exist anymore.

ALLEN: He is the one who called it after the bailout went away, but yes, I think people do not know what they are voting on, and they indicated that. Greece's finance minister had harsh words at his own for the country's European creditors.

HOWELL: He spoke on Thursday to CNN's Richard Quest.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Think of what's going on in the last five months as an investment into achieving an agreement that is mutually beneficial for everyone. Why is the Greek economy stagnating so badly in the last few months? Why are the banks closed, it is because the Euro group has decided the blackmail our government into extending and preventing further like the previous governments...

RICHARD QUEST, CNN CORRESPONDENT: And the Euro group will say the banks are closed, the Greek economies in the situation it is in, because the government in Athens is incompetent or inexperienced or maybe even both.

UNIDENTIFIED MALE: Richard, the reason why we're elected was because the Euro group for five years has failed miserably. They seduces of impose the program of fiscal consolidation that would go down in economic history globally good economic history as the greatest failure ever. This is why I am sitting in his office now, so perhaps all sides should take a step back and they consider their own contribution to the last five years of this disaster, and may be they should take very seriously the very simple proposition that it is time to stop extending these prices into the future.

(END VIDEO CLIP)

HOWELL: So as political leaders posture as they continue to talk and debate over the next few days, life for the average Greek person. It is getting much, much more difficult.

ALLEN: What little money they can get has to go a long way. Issa Suarez met one man struggling to provide for his family.

(BEGIN VIDEO CLIP)

ISSA SUAREZ, CNN CORRESPONDENT: (Inaudible) has given his heart to these broken pieces, lovingly fixing and restoring them. But now after 40 years of labor, he's struggling to put himself together. His emotions are running raw.

UNIDENTIFIED MALE: I'm 65 years old and I am a beggar. How can I live? I've had a triple bypass, and if something happened to me now with my wife have to decide to let me die because we do not have money.

SUAREZ: (Inaudible) is retired just two years ago and passed on his family carpentry business to his children. Already, in its fourth generation, but even with the business he worries about the life they will lead.

UNIDENTIFIED MALE: I feel very sorry for my children. My first son is looking for a job. My daughter is in law school. And I have no money to send her abroad for something better. My third son works here, so at least he can have something to feed his family. There is no future for young people.

[00:05:01]

SUAREZ: From time to time, he returns to the workshop to help out the things of those outside, where millions of Greek pensioners struggle to make it day by day.

UNIDENTIFIED MALE: Everyday I go and wait outside of the bank for two or three hours to get 60 Euros. I sold my wedding ring because I had to. I sold everything just to get by.

SUAREZ: And in case I did not quite understand his frustration, he takes out his wallet, 20, 35.

UNIDENTIFIED MALE: That's all I have and I have to provide for my family, 10 Euros for electricity, 5 for petrol.

SUAREZ: Showing me around his workshop, he tells me he seen many crises. Having 10 employees before to absolutely none now, from it all, he came out stronger, but now at his age he tells me he is defeated. You're very emotional. Are you angry, are you frustrated.

UNIDENTIFIED MALE: I am frustrated that this is the end of my life. I am angry at the people who brought us to this. I am sad because I cannot provide for my family. I am sad, I cannot enjoy the last year of my life after all the years I have worked for.

SUAREZ: Heartbreaking words from a man who spent his years giving life to broken pieces, Issa Suarez, CNN, Athens, Greece.

(END VIDEO CLIP)

HOWELL: With us now is Alan Valdes. He is an investment banker who has been keeping a close eye on this Greece situation as well, Alan, thank you so much for being with us. I want to read you the headline here on CNNMoney.com. It really sums it up well, it says, "Greece is facing a hideous choice, a third massive international bailout with strict austerity attached or economic collapse. How do you choose between that?

ALAN VALDES, INVESTMENT BANKER: You know it is a tough choice for the Greeks. It will be watched very closely on Wall Street. Yes, go and standing Euro. It is so good to be top. I know about probably the only Euro probably there. Their cabinet resigned. The Euro is going to be top. Either way, the choice is up and raised there is no silver bullet, no easy answer, unfortunately.

HOWELL: The finance minister saying that if it is a yes vote that he would resign. Also hearing from the prime minister that he expects to strike a new bailout deal after this referendum vote, so you do here sort of mixed messages about what the next step would be for Greece after this vote.

VALDES: You know -- I mean I do not know why he thinks is to strike a deal. I think -- you know on Merkel is not in the mood to strike a deal. I can say that much, and as far as the finance minister. Yeah, it is a rather bizarre more so I think you will see him like I think you will see the whole cabinet leave and you will see is just the way things more importantly, you will see a new government a couple months. So overall it is amassed and died. You have to feel sorry for he was because the banks are not open probably anytime soon as the money and the ECB, which is really running everything Marriott Rocky. They are not give into that and they are not forget the month because the consequences are Spain and Portugal -- Portugal and Spain collections, this will socially isolated leaving right now in Portugal and they are looking for handouts on reduced debt.

So it is really to keep alive as far as the Germans are concerned.

HOWELL: I want you to paint the picture for us. So after this vote say that the vote is a no vote, then what does that mean for the average Greek, but then also what is the fallout -- the economic fallout for other countries in Europe.

VALDES: Great question. No vote for the average Greek is very problematic and no major probably going to Europe. You are probably not going to see -- banks being open anytime soon because basically they're out of cash. I mean there is some cash left at getting 60 Euros a day from the ATMs, but otherwise it is going to be tough, and there is just no money. The only -- one silver night, maybe China, there are talks early this morning. Rumors daily, China may come in down the road but Vestal it be right there. I think you see anything from Russia, but maybe China may come and save the day.

ALLEN: Like you said not many good choices to say the least. It has been a tumultuous week for Greece and leaders of the Euro zone.

[00:10:01]

HOWELL: Let us take a look back now to see how we got where we are today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We will survive. And we decide as people will appear in the future. Now you will note that there is no money.

UNIDENTIFIED MALE: It is impossible for anyone who has not started basic economic theory to be able to understand exactly what the question is on the requirements review. I think we're looking towards a charades referendum on Sunday.

UNIDENTIFIED FEMALE: This evening at 24 hours or midnight European time, the program comes to an end. The deadline comes to an end, and I cannot really give you any other significant indications of course after midnight. We are not just going to put an end to our discussions. The door is still open for discussion. That is really all I can say at the present moment. UNIDENTIFIED MALE: No is a decisive move for a better agreement, which we are planning to sign straight afterwards if something is real. That is clearly the desire of the people of how they would like to live the following day. Fallout with Euro, but just returning to Euros in values, no means a solution to the debt which will not make it any bigger and will not jeopardize of trying to improve the greater economy and society.

UNIDENTIFIED MALE: The part of the request, which is about the extension of the old program, is practically impossible and the political context and medical styles the government has not changed. So the old program will expire.

UNIDENTIFIED MALE: Greece is in default or will be default tomorrow morning on the IMF.

UNIDENTIFIED MALE: I support him to be successful in getting agreement. I am sorry you did not. I criticize him for that. But what I want to see is this country to set up five years as the market becomes stable and let us look at why we actually had to use bailout program.

QUEST: There is no other way to put this. Here in Greece, a financial calamity has just arrived. Greece has defaulted on a $1.7 billion payment to the International Monetary Fund and that payment has not been made.

ALLEN: And of course, the vote, the referendum takes place on Sunday, we will be covering this story through of course the weekend for you. Now we turn to Nigeria, where troops are fanning out across three villages, assessing just how much damage Boko Haram did in a series of brazen attacks Thursday.

HOWELL: It happened in Borneo of the state which has seen so many of these raids before, the fighters killed at least 145 people. Witnesses and local officials say militants even opened fire on people observing evening prayer in a mosque. Nigeria's military says it has conducted air strikes, conducted after the attacks.

ALLEN: Tunisia is deploying nearly 1,400 armed security agents to hotels and beaches trying to step up security around tourist spots.

HOWELL: Tunisia security forces have now arrested eight suspects, including a woman, this, a week after an attack on a resort that left dozens of tourists dead, 30 of the 38 people murdered were British. And Thursday, then we saw this, nine more bodies of victims flowing to a Royal Air Force base in England. Foreign Secretary Philip Hammond says there will be two more repatriation flights in the coming days. At noon local time, the U.K. will observe a nationwide moment of silence.

Given what happened to members of Britain's -- what happened the members of Britain's Parliament I should say they are now willing to discuss possibly stepping up further their fight against ISIS inside the country of Syria. ALLEN: Currently, Britain conducts air strikes in Iraq and flies

drowns over Syria as part of the U.S.-led coalition, but it does not carry out air strikes against ISIS in Syria. The country's defense minister suggests that may need to be revisited.

UNIDENTIFIED MALE: We know that ISIS is organized and directed from northern Syria. That is why the prime minister said during the debate last September, when -- on taking military action in Iraq that "There is a strong case for us to do more in Syria." However, I will give liniment -- however the prime minister recognized the reservations that some members of this house had and we will not bring a motion to this house in which there is not some consensus. This is of course, a new parliament and it is for all members is to consider carefully, how best to tackle ISIL, an evil caliphate that does not respect state.

(END VIDEO CLIP)

[00:15:01]

HOWELL: Of course, ISIS is claiming responsibility for that attack in Tunisia. The group is also taking credit for what happened at this mosque in Kuwait City last Friday, a deadly suicide bombing there.

ALLEN: And all of this has many countries across the Middle East increasing their security. We are midway through Islam's holy month and ISIS supporters are promising, "Many surprises during Ramadan." Last week, an ISIS fighter from Bahrain threatened an attack on his home country.

HOWELL: Meanwhile, there are words of praise from the U.S. Vice President Joe Biden, applauding Iraq's efforts to stop ISIS from gaining any more ground there.

ALLEN: Mr. Biden spoke with Iraqi Prime Minister Haider al-Abadi Thursday, the White House says he reaffirmed U.S. support for Iraq's ongoing efforts and the contributions of U.S. military advisers there.

After five years of legal wrangling, the largest environmental settlement in history has now been reached over the B.P. oil spill in the Gulf of Mexico, next we'll tell you how much B.P. will pay out.

HOWELL: Plus, Colombia's government says multiple explosions in downtown Bogota were the result of terrorism. That story is next.

(COMMERCIAL BREAK)

[00:23:01]

HOWELL: Welcome back. We are following breaking news in China. We learned that at least two people have died after a strong earthquake in the western region of that country. This is according to the Chinese news agency with more on this, let us turn to our Meteorologist Karen McGinnis who is following this, Karen.

KAREN MCGINNIS, CNN METEOROLOGIST: We may have to go back a couple of months and take a look at what happened in Nepal, just kind of equate what happened here is fairly remote. It is fairly sparsely populated. The Nepal earthquake, 7.8 magnitude that claimed 8800 lives roughly speaking, this is a 6.4 magnitude earthquake. Its depth within about 20 km of reasonably shallow, pretty much anything shallower than about 50 kilometers deep. It is considered relatively shallow, so that means you are going to feel it more intensely and if there is the potential for more damage. This is the epicenter, this is in the far western portion of China.

It backs up to the Hindu Kush Mountains. It is fairly erred, but when you see at least the shake map. This is where there is water. This is where there is also agriculture. They definitely feel it. Right around this area, especially in their orange or more yellow shaded areas, where we see some of the bars enough to come up here just a second. That tells us the areas that are more densely populated. They would definitely feel it more. But as you can see here, once you get beyond this region it is fairly desolate, but that nonetheless, this was felt had reports of fatalities here. I daresay will probably we go to the upcoming hours we will hear more about that because a fairly significant earthquake at 6.4, but relatively shallow.

Those are the key ingredients, George, Natalie back to you.

ALLEN: Ok, Karen, thank you.

HOWELL: Again, just to recap what we know at this point, a 6.4 magnitude earthquake. At least two people dead in the western region of the country. We will continue to stay in touch with our sources on the ground and learn more about what happened there.

Survivors are just beginning to recount the frightening moments that a ferry carrying 187 passengers and crew capsized off the central Philippines. Minutes after leaving port, the boat flipped, killed at least 38 people and 15 are still missing.

ALLEN: The majority of those on board were rescued from the tall is a medical missionary who was on board. She joins us now by phone. We're getting different reports on maybe why this happened. Some say they were big waves in the area, but we know that this very -- as soon as it left port made a sharp turn and capsized. What was your experience and where were you on the ferry?

UNIDENTIFIED FEMALE: We were upstairs in the stairway, and it was really sudden. I heard a thud at the back of the boat and maybe that thud is the one making that shifting the cargo to the right, because the ship went to kind of -- to the right of the cargo. So the boat came out and talking and then sat in that and they want is really in the water.

ALLEN: Did you go into the water? Were you thrown into the water?

UNIDENTIFIED FEMALE: Excuse me?

ALLEN: Did you go into the water?

UNIDENTIFIED FEMALE: Yeah, I did go into the water. I was separated with my husband because -- fortunately, I had a life jacket. It was very tragic. Anyway, then -- good thing that I had that life jacket because if I didn't have it I would have gone down to the water also, so when I got out to the boat, I know my husband -- anyway it was really like -- it's a lot commotion in the water but all of a sudden. I do not know what I am doing anymore.

ALLEN: That had to be very terrifying. Really glad you are ok, 36 people died and as we often report hundreds die each year, and very active in the Philippines. Their safety record is poor but we do not know caused this. We appreciate you talking with us -- there from the Philippines.

[00:30:01]

HOWELL: Colombia's defense minister says a series of explosions in downtown Bogota are without doubt terrorism. The explosions happened outside the offices of the Pension Fund Management Company, at least eight people wounded.

ALLEN: Officials say someone called to say they left a suitcase full of explosives. The government is offering a $38,000 reward to anyone with information.

B.P. has reached a historic agreement to settle claims from the giant deepwater horizon oil spill. It was five years ago when the world watched as oil gushed into the gulf of Mexico day and night, week after week, B.P. has agreed to pay five U.S. states for the damage caused.

ALLEN: And it is a pretty big number, $18.7 billion. Most of the money will go to the state of Louisiana, which suffered the brunt of damage there. The deepwater horizon oil spill was the largest environmental disaster in U.S. history, 11 people were killed in the initial oil rig explosion.

You're watching CNN Newsroom. North Korea pushes ahead with the space program, while the country struggles to feed its own people, but insiders say that increased funding is essential, an exclusive report coming up.

ALLEN: Also ahead here, Brazilian politicians red card. The country's football buffs has more on a probe into alleged corruption, bribery and money wasting during last year's World Cup.

(COMMERCIAL BREAK)

[00:43:01]

ALLEN: We've been talking about the school airplane for quite sometime now. Glad to say it still going, a plane powered only by the sun, the solar impulse is on the verge of completing the most demanding part of its journey yet without a drop of fuel.

HOWELL: Maybe it's the future.

ALLEN: Maybe so, Pilot Andre Forsberg is more than four days into a grueling flight from Japan to Hawaii. He has already set a world record for the longest solo flight.

HOWELL: The leg over the pacific is considered one of the most dangerous in the around the world attempt. But speaking from the cockpit, Forsberg believes it is worth it to fire up the debate over renewable energy.

ANDRE FORSBERG, PILOT: We know which she was the get you they evaporated. Consider that our whole we hold should waive proficiencies. Sometimes it will reduce energy consumption that we know we have the article from surrey buries the show for the government, and instead of talking about the program so that you very good solutions that will push forward.

HOWELL: I remember the first time we talked about the story and here we are today. He is flying in a Hawaii, he is talking about...

ALLEN: After touching down in Honolulu, the solar impulse's next phase will be to fly to Phoenix, Arizona, that is about 4700 kilometers away. We wish them well.

HOWELL: Are you a big fan of Sesame Street?

ALLEN: Of course, who isn't?

HOWELL: Who isn't, well, sad to say there is a moving van on the block and it is for one of the shows most beloved characters.

(BEGIN VIDEO CLIP)

OSCAR THE GROUCH: Hey, Skinny, Ms. Fixit, can you come in.

UNIDENTIFIED FEMALE: What do you want, Oscar?

OSCAR THE GROUCH: You're just the person I was waiting for. I wonder if you could do me a little favor here. If you do it, I'll give you something...

(END VIDEO CLIP)

[00:49:01]

HOWELL: So that is Sonia Manzano or Maria, she is better known on the show, she is retiring after almost 45 years on Sesame Street.

ALLEN: Can you believe? She's a great been a gal, hasn't she? Manzano made her first appearance back in 1971. The 65-year-old Puerto Rican actress has taken to social media to personally thank well wishing fans.

HOWELL: I was watching as a kid, you remember the song, who are the people in your neighborhood. Thank you for being in the neighborhood with us here, I'm George Howell. I'll be back at the top of the hour with another hour of news.

ALLEN: And then I will be back with another hour with George. Coming up here, first a shock at the championships, Rafael Nadal falls in Wimbledon. World Sport is next here. See you soon.

[01:00:00]