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Early Start with John Berman and Zoraida Sambolin

River Cruise Ship Sinks in China; Alarming Failure for TSA; Introducing Caitlyn Jenner. Aired 4:30-5a ET

Aired June 02, 2015 - 04:30   ET

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

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[04:30:05] JOHN BERMAN, CNN ANCHOR: Breaking news this morning. A desperate mission to rescue tourists missing after their ship suddenly sinks in a storm. We are live with the very latest.

CHRISTINE ROMANS, CNN ANCHOR: Shakeup at the TSA. Its director ousted following an alarming failure to find replica bombs, weapons, contraband, all smuggled past security at airports across the country. Details ahead.

BERMAN: Good-bye, Bruce. Hello, Caitlyn. Caitlyn Jenner now sharing her story of transformation with the world.

A lot of people are talking about that.

ROMANS: Oh yes.

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

ROMANS: And I'm Christine Romans. Nice to see you all this Tuesday morning. Very rainy here in the East. It's 30 minutes past the hour.

We get to our breaking news this morning: a frantic search is under way on China's Yangtze River. The rescuers are scrambling to save survivors from a cruise ship that capsized on the storm there with more than 400 people aboard. Crews are report hearing sounds through that overturned hull. They're desperately trying to reach passengers they believe are still alive trapped inside.

Chinese state media reports just 14 survivors have been rescued. Among them, the captain and chief engineer, both are now in police custody.

For the very latest, let's bring in CNN's Anna Coren -- Anna.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Christine, we can tell you in the last few minutes, another person has been rescued. Taking the number of survivors to 15, which is just extraordinary, considering that ship capsized last night with 458 people onboard. Most of those people, retirees, elderly, you know, many of them aged in their 80s. So, to think there are still people being plucked from the hull of the

ship is quite extraordinary. But, certainly, according to the weather bureau, that ship was hit by a fierce storm last night. The captain and chief engineer who both survived and now have been taken to police custody, they say the ship was hit by a cyclone and it went down within a minute.

We know according to state media that this was a survivor that swam to shore who alerted authorities. That took perhaps two hours before rescuers were alerted and operation finally got underway. Also, that was hampered because of the wild weather.

Today has been calmer. However, we are getting reports from our correspondent on the scene, David McKenzie, that it is still raining. There are hundreds, if not thousands, of police, divers, there are helicopters, there are boats all scouring the Yangtze River, trying to find any survivors.

The Chinese premier Li Keqiang is there on the site. He witnessed a 65-year-old grandmother plucked from the water. She reportedly was thanking the divers over and over again. But he has ordered all resources being made at the disposal at rescuers. He said every effort must be made to save lives and he's also ordered an investigation into what went so terribly wrong, Christine.

ROMANS: When you look at the picture, Anna, of that overturned, just the hull of the ship, trying to hear if anyone is inside, it is terrifying. If you are trapped in there, it is difficult to navigate out of the darkness to get out into the cold water to get to the rescuers.

What do we know? Fifteen survivors plucked from the waters. That means there are hundreds still trapped in the ship or missing.

COREN: Yes, that's right. More than 400 unaccounted for. That is the grim reality. We are talking about senior citizens. We are talking about the elderly.

So, you know, for the families of those on board the ship, they are distraught if not furious, wanting to know how this could possibly happen. You know, this ship was traveling from Nanjing to Chongqing. Now, these are two of China's largest city.

This route along the Yangtze River is popular for tourists. They go through the scenic canyons known as the Three Gorges.

So, this is a trip made often. Certainly we know that rescuers, as you say, the dramatic pictures of them, you know, tapping on the hull of the ship, they say they have found signs of life. They heard voices. They heard people knocking on the hull.

So, obviously, survivors finding air pockets within that hull. As we know, the rescuers racing against the clock to try and find anyone still alive.

ROMANS: Just a tourist river cruise taking a deadly turn. Thank you so much, Anna. Come back to us when you have more details.

BERMAN: All right. Also breaking overnight, the acting head of the TSA losing that job after tests found that airport screeners failed to detect -- or failed to detect weapons and explosives 95 percent of the time.

[04:35:04] Homeland Security Secretary Jeh Johnson announced overnight that the acting TSA administrator Melvin Carraway is being reassigned. The chairman of the House committee that oversees the TSA, Jason Chaffetz, calling the test results deeply alarming. Aviation and government regulation correspondent Rene Marsh has the

latest from Reagan National Airport in D.C.

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RENE MARSH, CNN AVIATION AND GOVERNMENT REGULATION CORRESPONDENT: Well, Christine and John, undercover agent with the Department of Homeland Security's Office of Inspector General, they tested the system at airport security check points. They tried to smuggle weapons as well as fake explosives through these checkpoints. They performed 70 tests and they were successful 67 times.

This sort of operation has been done for years. The goal is to test the vulnerabilities as well as to strengthen the system. So, by design, this test is very difficult.

But as one former TSA official puts it, there's no way, absolutely not, the failure rate should be as high as it was. It was 95 percent. We are hearing from the Department of Homeland Security, Secretary Jeh Johnson says that he has called for six actions.

The first one, he wants revised screening procedures. He wants the results of the testing to be shared with airports across the country. He wants more training for TSA officers. He also wants TSA screening equipment to be retested and reevaluated. He wants these covert operations to continue.

And lastly, Secretary Johnson says he is appointing a team to make sure this happens in a timely fashion -- Christine, John.

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ROMANS: Thanks for that, Rene.

Of course, it's dangerous and it's insulting because of the time you spend in line to be safer at the airport and it looks like all of that can get through anyway.

Expected later today, a vote in the Senate on restoring the NSA surveillance programs that lapsed Sunday night.

On Monday, Rand Paul once again thwarted Majority Leader Mitch McConnell's efforts to get a speedy vote on the USA Freedom Act. Senator Paul wants to tweak the bill, adding more restrictions on NSA spying. But any amendments would send the measure back to the house and extend the time the NSA goes without bulk collection of Americans' telephone records.

BERMAN: Developing overnight: Secretary of State John Kerry arrived in Boston for surgery on his broken leg. The secretary broke his femur Sunday during a bike accident in the French Alps.

Nuclear talks with Iran had hit a critical stage, and with less than a month to reach a deal, it is not clear when the 71-year-old secretary will be able to fly again and his staffers insist he is working the phones, firing off emails. They say the injury will not affect the talks.

International inspectors report that Iran's stockpile of nuclear fuel has increased 20 percent during the last 18 months. The White House has been claiming Iran's nuclear production has been frozen during the talks.

ROMANS: Secretary Kerry will miss a critical meeting in Paris today, he can't be there in person obviously. Senior officials from the U.S.-led coalition will be holding a strategy session to defeat ISIS. The meeting comes on the heels on of the fall of Ramadi.

Meanwhile, the U.S. has delivered 2,000 anti-tank weapons to Iraq to defend against suicide bombers. Remember those big suicide bombs that really helped them take Ramadi.

The terrorist group is on the move again, launching a surprise weekend attack in Aleppo, that's in northern Syria. This latest push brings ISIS closer and closer to the Turkish border.

According to a new CNN/ORC poll, six in 10 Americans believe the military action against ISIS is going badly. President Obama taking a hit, 44 percent of Americans blame him for the unfolding crisis in Iraq, 43 percent says it is George W. Bush's fault.

For the latest on the talks to defeat ISIS, let's go to Cairo. I want to bring CNN's Ian Lee.

What are they hoping to accomplish in Paris today, Ian?

IAN LEE, CNN REPORTER: Christine, right now, foreign ministers from 24 countries are meeting. They are going to be discussing an array of topics. But just before those meeting takes place, we heard from Iraq's Prime Minister Haider al-Abadi who has some scathing criticism for the international coalitions, saying the coalition partners were not providing Iraqi forces with sufficient air intelligence to stem Islamic state advances while support for ground operations were also lacking.

He was basically talking about how ISIS used the small groups to evade air strikes and move and operate really throughout the territory without really the threat of air strikes.

But in this conference, we are expecting two things. First, how they can better coordinate forces and the equipment to defeat ISIS and different groups that are taking place in that. On the other side, you have the talks about reaching a political deal. This all began over a divide between the Sunnis and Shiites.

[04:40:00] They're going to be talking about how they can bridge that divide to get them together because if they want unified Iraq for the future, that is going to be crucial.

ROMANS: What about U.S. role in particular in defeating ISIS?

LEE: Well, we heard that they sent 2,000 anti-tank weapons. That is going to be crucial because ISIS has been using these armored vehicles, packed with explosives, and sending them to the frontlines, devastating the Iraqi forces and really exploiting that to advance. That is crucial to stop the advance.

Also, the United States is going to be providing air support or training and weapons to other aspects. But what is also going to be just as crucial is for the United States to push for this political deal. We heard from different officials that is one of their main objectives is.

If you look back during the war in Iraq with U.S. forces, it wasn't until they reached a political deal with the Sunni tribes that we saw a lot of that violence died down. So, that's something that they're going to be pushing as well.

ROMANS: All right. Ian Lee in Cairo, thank you for that, Ian.

Forty-one minutes past the hour. Time for an early start of your money.

Asian and Europe stocks lower this morning. Greece has a looming debt deadline. U.S. stock futures turn lower, too, after the Dow climbed yesterday about 30 points. Now, the economy overall looking strong.

Gas prices are low and job creation is picking up, but Americans have been hesitant to spend money. Americans spend less in April than in March, and that's part of a growing trend.

Instead, Americans are increasing their savings. The annual savings rate is 5.6 percent. That is higher than the norm of 3 percent.

Now, you heard it a million times, consumer spending drives the economy. So, this maybe economic sacrilege, but I'm encouraged people are paying attention. You hear a lot handwringing overnight and late yesterday about how Americans aren't spending money. What does that say about their confidence in the economy? I say Americans are trying to be confident in their own balance sheets.

BERMAN: This is one of those economic forecast, trends that, you know, you can't win. Either you are saving too much or spending too much, no one is happy.

ROMANS: Right, right.

BERMAN: It's not a bad thing if you put a little money --

ROMANS: I totally agree. BERMAN: All right. No more Bruce. Meet Caitlyn Jenner, sharing her

remarkable story of transformation. Getting support from the president. Breaking records online in like no time at all. Brian Stelter is here in the early morning hours to break it all down for us next.

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[04:46:06] BERMAN: No more Bruce. It is Caitlyn Jenner now. She is introducing herself with a glossy cover in "Vanity Fair."

The 65-year-old Jenner talking openly about gender transition. Her new persona, her new name, were an immediate hit on social media. Caitlyn collected more than 1 million Twitter followers in a matter of hours.

We are joined by CNN's Brian Stelter, our senior media correspondent, the host of "RELIABLE SOURCES", to talk about this.

And, Brian, we have been talking about this all morning.

ROMANS: Yes.

BERMAN: There are really two big wows to me here. One is, first of all, how great she looks. There is nothing wrong with saying that. These pictures are fabulous.

The other big wow is the media rollout here which is perfection.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: Absolutely. It starts with Diane Sawyer in ABC months ago. Bruce Jenner at the time sat down with Diane Sawyer in February. The interview aired in April.

But by then, this transformation we see on the cover of the newspapers was already beginning. By the time this interview was airing, by the time Bruce Jenner spoke about being transgender, some of the transition we see on the cover of "Vanity" are starting, then this photo shoot with Annie Leibovitz is the next step in the very public and very brave transformation.

ROMANS: The piece by Buzz Bissinger is just absolutely fabulously written. It is a very well done. As he gets to a lot of the key questions anybody would have in this sort of transition, I think it is interesting, too, sort of the pronoun confusion.

Talk to me about he is now a she.

STELTER: Right.

ROMANS: Even her family is having trouble getting their arms around what to call him.

STELTER: For sure. As a journalist, I had to learn the most appropriate way to talk about these issues.

ROMANS: Right. STELTER: It first came up with the Bradley Manning and Chelsea Manning story. That's when Bradley Manning who was in jail for the WikiLeaks scandal changed to Chelsea Manning, said that he wanted to be identified as a woman and is now seeking reassignment surgery while in prison. This is a bigger stage for Bruce now Caitlyn Jenner. Typically what transgender community says is if prefers to be called he, call him he, if you prefer she, you say she.

So, in this case, I think the cover says it, to say "Call me Caitlyn", it is expressing what Caitlyn Jenner wants.

ROMANS: And the acceptance of this. We have media standards for how we treat gender transformation. It is a new place in culture.

STELTER: You don't shy away from the fact this is new for people and uncomfortable for people. There is negativity online, no doubt about that. It is drowned out by the positivity.

BERMAN: Look, if you go to Twitter, you find negativity about sunshine or flowers.

Caitlyn Jenner, in some way, she is the perfect vessel to lead the discussion on this. That is clear in the article. Buzz talks about going golfing with the then Bruce. This is the greatest athletes of the 20th century here, a symbol of masculinity. I think now when people see this, they -- it spurs the discussion I think in a deeper way.

STELTER: That's why the next big moment in this public transformation will be an ESPN Award. We found out yesterday that Caitlyn will be accepting the ESPY Award, the Arthur Ashe Courage Award in July. That is the moment when she is on stage in front of her peers in the sports world and speaking in front of them. It just so happens, a couple of weeks later, her reality show debuts on E!

So, what we're seeing are steps along the way in this public transformation. This is probably the perfect way to do it, to be on the cover of one of the most prestigious magazines in the world, and to reveal a new identity for the first time.

ROMANS: Secrecy behind it too. It just kind of came out of nowhere yesterday.

STELTER: There was top secret security. This magazine cover was being carried around on one flash drive. So, nobody at "Vanity Fair" saw it that wasn't supposed to see it. It was top secret security. And it worked. It all surprised everybody when it came out yesterday and the whole still talking about it.

BERMAN: They made clear she is not doing this for the publicity, but does not shy away from it.

STELTER: It is about handling it the right way. And she has.

BERMAN: I think she's going to make some money off of it, too.

ROMANS: Thanks, Brian.

BERMAN: Brian Stelter, great to have you here with us.

ROMANS: All right. Severe storms pummeling the northeast leaving communities under water.

[04:50:02] What you can expect today, that's next.

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ROMANS: As Texas and Oklahoma finally start drying out, the East Coast gets drenched and severe weather. Reports on Monday from Florida to New Jersey of large hail and high winds. A funnel cloud, flash flooding and there is more on the way in today's forecast.

BERMAN: In Atlanta, heavy rain triggered flash floods swamped streets and backed up traffic around that city. The cloud burst flooded homes and totaled cars. Check that out in the apartment complex parking lot.

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UNIDENTIFIED FEMALE: Everyone on the bottom floor was trying to move their cars. A few minutes later, there was nothing anybody could do.

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ROMANS: In Washington, D.C., high winds toppled trees with unfortunate timing for the city bus. Flash flooding from Monday's heavy thunderstorms flooded Amtrak Union Station and city streets.

Check this out. Yes, those are the stairs at the metro system capitol South Station that are now a waterfall.

BERMAN: All right. There is more potentially dangerous weather in the forecast today. Meteorologist Ivan Cabrera is tracking it for us with the latest.

IVAN CABRERA, AMS METEOROLOGIST: John and Christine, we will focus on the Northeast, not just today, but over the next several days, anywhere from 2 to 4 inches falling yesterday. Another spot here across the north central U.S., that's where we're going to have severe storms.

[04:55:05] I don't think it will be severe across the Northeast, but the problem here is not going to be damaging winds, it's going to be very heavy rainfall. This is what is already happened across the Northeast. A good area of two to as much as four inches. The ground is saturated. Can't take much more rainfall here.

Specific totals here, we had a couple of records in Wilmington and also in Baltimore as well, 2.5 inches of rainfall fell in a short amount of time. And that is why we continue with the flood watches across the northeast corridor.

This is going to continue not just today but into tomorrow as well. We're going to have a series of disturbances moving through here. So, heavy rainfall potential here certainly, anywhere from D.C. to Philly and across 95 from two to four inches in the next 48 hours -- guys.

ROMANS: Wow. All right. Thank you for that.

A frantic search and rescue mission. Hundreds of tourists are missing after the cruise ship sank. EARLY START continues next.

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