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Early Start with John Berman and Zoraida Sambolin

Cruise Ship Sinks: Hundreds Missing; Alarming Failure for TSA; Introducing Caitlyn Jenner; Houthis Free U.S. Journalist; UAB Football Program to be Reinstated. Aired 5-5:30a ET

Aired June 02, 2015 - 05:00   ET

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

[05:00:00] JOHN BERMAN, CNN ANCHOR: Breaking news this morning: a frantic rescue mission. Hundreds of tourists missing, perhaps trapped inside a cruise ship after it sinks. We're live.

CHRISTINE ROMANS, CNN ANCHOR: Shocking failure at the TSA. Replica bombs, weapons and contraband all smuggled past check points at airports across the country this morning. Ninety-five percent of it got through, folks. TSA leader ousted. Details on the shakeup, ahead.

BERMAN: Introducing Caitlyn Jenner. Now sharing her story of transformation from U.S. Olympic hero to America's highest profile transgender person.

Good morning, everyone. Welcome to EARLY START. I'm John Berman.

ROMANS: I'm Christine Romans. Nice to see you all this morning. It is Tuesday, June 2nd. It is 5:00 a.m. in the East.

We have breaking news. A frantic search underway on China's Yangtze River. Rescuers are scrambling to save survivors from a cruise ship that capsized in the storm, with more than 400 people were onboard. Crews report hearing sounds through the hull. You can see them tapping there, trying to reach passengers they believe could be alive inside.

Chinese state media reports just 15 survivors have been rescued. Among them the captain and chief engineer now in police custody.

For the latest, I want to bring in CNN's Anna Coren.

And, Anna, these are -- many of these people are elderly tourists taking a scenic river tour between two well-known cities in China. Hundreds of them missing.

ANA COREN, CNN INTERNATIONAL CORRESPONDENT: Yes, 400 people, more than 400 people unaccounted for, Christine, which is frightening. That ship capsizing over 19 hours ago. And the only survivors to have surfaced, you know, come to a total of 15.

Now, rescuers believe they have found further signs of life, voices, and people knocking on the hull of the ship. We saw the rescuer tapping with a hammer trying to communicate with people perhaps who have managed to get to air pockets within the hull, the very bottom of the ship. But still as I say, only 15 people have been rescued.

We know all assets are being thrown at the tragedy, divers, police, rescuers, helicopters, ships. They have slowed down the water coming out of the Three Gorges dam to help with the strong currents. They are racing against the clock to try to save anymore passengers.

But as you say, many of those on board were senior citizens and elderly. They're on this chartered cruise down the Yangtze River from Nanjing to Chongqing, to China's largest city. This is a very popular tourist trip, you know?

They go through the scenic canyons of the Three Gorges and really for this to happen, people are just wanting answers. Certainly the families just distraught and furious to think this could happen. But according to the meteorology agencies there was a fierce storm that hit that area last night according to the chief engineer and captain who did survive, they say it was a cyclone that hit the ship.

But certainly, the weather bureau not confirming that. There was fierce weather and torrential rain and winds, and that weather definitely perhaps a factor in what happened to this ship. They are not willing to say at this stage it was something like a cyclone -- Christine.

ROMANS: When you look at the hull of the ship upside down, it looks like a dangerous situation, maybe with air pockets underneath.

There are a lot of rescuers there. There are a lot of people and ships, but are they going into the ship and pulling people out?

COREN: Yes. Look, we have not seen the pictures. State media restricted to what they can show. These are the pictures we have been showing for the last few hours.

But we understand that the Chinese premier Li Keqiang is on the scene and he actually witnessed the rescuing of a 65-year-old grandmother who was saying to divers, thank you, thank you over and over again. But he has said that all assets, all resources must be given to these rescuers. Every effort must be made to save lives. And, he, too, Christine, has ordered an investigation into what went so terribly wrong.

ROMANS: All right. Thanks so much for that, Anna Coren, and keep us update if we get new information about those rescues. Thanks, Anna.

BERMAN: Dramatic pictures there.

Also, breaking overnight, the acting head of the TSA losing that job, lost that job after tests found that airport screeners failed to detect weapons and explosives 95 percent of the time.

Homeland Security Secretary Jeh Johnson announced overnight that acting TSA administrator Melvin Carraway is being reassigned. [05:05:01] The chairman of the House committee that oversees the TSA,

Jason Chaffetz, calling the test results deeply alarming. The results incredibly troubling.

Aviation and government regulation correspondent Rene Marsh has the latest for us from Reagan National Airport in D.C.

(BEGIN VIDEOTAPE)

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.

(END VIDEOTAPE)

ROMANS: Rene Marsh -- thanks, Rene, for that.

Expected later today, a vote in the Senate on restoring the NSA surveillance programs that lapsed Sunday night when legal authority for them expired. On Monday, Republican Senator Rand Paul once again thwarted Majority Leader Mitch McConnell's efforts to get a speedy vote of the USA Freedom Act.

Senator Paul wants to tweak the bill. He wants to add more restrictions on NSA data collection. But any amendments would send the measure back to the House and extend the time the NSA goes without the bulk collection of Americans telephone data.

BERMAN: Developing overnight: Secretary of State John Kerry arrived in Boston for surgery on his broken leg. Kerry 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.

His staff insists that he is working the phones, firing off emails. They say the injury will not affect the talks.

While that's going on, international inspectors report Iran's stockpile of nuclear fuel has actually increased 20 percent during the last 18 months of negotiations. The White House has been claiming Iran's nuclear production has been frozen during those talks.

ROMANS: Secretary Kerry will miss a critical meeting in person in Paris today. He is calling in instead. Senior officials from the U.S.-led coalition will be holding a strategy session to defeat ISIS. The meeting comes on the heels of the fall of Ramadi.

Meanwhile, the U.S. has delivered 2,000 anti-tank weapons to defend against ISIS suicide bombers. The terrorist group is on the move again, launching a surprise weekend attack in Aleppo, in northern Syria. This latest push brings ISIS closer and closer once again to the Turkish border.

According to a new CNN poll, six in 10 Americans believe the military action against ISIS is going badly.

President Obama taking a hit -- look at that -- 44 percent of Americans blame him for the unfolding crisis in Iraq, 43 percent says it is President George W. Bush's fault.

For the latest on the talks to defeat ISIS, let's go to Baghdad and senior international correspondent Nick Paton Walsh.

Good morning, Nick.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Christine, Haider al Abadi really straight out of the blocks at this conference in Paris, saying that they really need more aerial support from coalition. Now, we know there are strikes in play, but the key issue, many people will be asking, is how big cities call them. Some of them are stuck in the desert and convoys have had adequate strikes to slow ISIS momentum down. That's something in debate.

There are Iraqi officials saying ISIS use smaller convoys, looking like civilians to infiltrate these popular areas.

But we are at a crucial stage in these Paris talks. John Kerry's physical presence at absence and an issue potentially. But those poll numbers, that 60 percent was roughly similar to when George W. Bush announced the surge in Iraq. Many are looking to see quite what U.S. strategy can happen. It did turn the tide here.

You mentioned ISIS also moving to the west not in Aleppo. They are moving towards the key supply route down from it. That could potentially threaten that city, where there could be 300,000 to 600,000 civilians just in rebel-held areas along in there if ISIS do cut that road off.

So much is moving so fast. We heard the conferences like the one happening today in Paris, frankly, month after month, year after year, in four years for Syrian crisis in the fight against ISIS here. People are going to be looking for concrete results frankly from this to try to actually turn around what we have seen day by day here.

[05:10:04] We saw it yesterday, 34 dead Iraqi police at a suicide bombing violence here, just north of where I'm standing. Something has to change fast and the strategy if ISIS momentum is going to be reversed -- Christine.

ROMANS: Nick Paton Walsh, thanks for that analysis, Nick, this morning from Baghdad.

In the Pentagon, anthrax scandal, the Pentagon now says live anthrax samples were sent to three additional labs in Canada. That means live anthrax has mistakenly been sent to 12 states and Washington, D.C. and three countries. The samples originated at an Army lab in Utah. Scientists intended to ship inactive strains of those deadly spores for research. Defense officials say, so far, no one has been sickened by the anthrax samples.

BERMAN: Health insurance premiums could increase as much as 30 percent for people who purchase through Obamacare. According to the Obama administration, major U.S. carriers are seeking major rate hikes in 2016. Among the largest proposed rate increases, Blue Cross and Blue Shield of Illinois, looking to raise premiums by 29 percent or more for plans.

Last year, the Obamacare increase as 5.4 percent. Again, the White House had been bragging about, you know, the relatively modest increases. This will not be something they brag about.

ROMANS: All right. Time for an early start on your money this morning.

Asian and Europe stocks lower. Greece has a looming debt deadline. U.S. stock futures are down a bit. The Dow climbed 30 points thanks to positive signs for the economy. You know, we could get more positive signs with auto sales. They are later this morning. They are likely to be strong. In fact, sales on pace for the best year since 2001.

A cut throat wall street giant now family friendly. Goldman Sachs is expanding its parental leave facility, offering new fathers four weeks off, four weeks paid instead of the previous two-week break. That also applies to partners of same sex couple. A growing trend of talent tantalized by Silicon Valley from Wall Street. You know, you want to keep your best people. Big banks trying to change their never-ending hours to compete.

BERMAN: Only ever displayed a modicum of financial prowess or capability. Perhaps a whole different field. Who knows?

ROMANS: Maybe.

BERMAN: All right. Hello Caitlyn Jenner. Caitlyn Jenner made her public debut on the cover of "Vanity Fair." Caitlyn, formerly Bruce Jenner is speaking candidly about the gender transition and finally being able to live freely as the person inside. The new Twitter handle also debuted and drew in more than 1 million followers in a record number of hours, beating the record set by President Obama who responded by tweeting, it takes courage to share your story.

ROMANS: All right. Twelve minutes past the hour. Severe storms pounding the east coast this morning. Another ugly commute, folks. Flash flood fears up and down the coast.

The damage done and what is still on the way, that's next.

(COMMERCIAL BREAK)

ROMANS: As Texas and Oklahoma finally start drying out, the East Coast is getting its turn for severe weather Reports Monday from Florida to Jersey of large hail, high winds and funnel clouds, flash flooding, with more now in today's forecast.

BERMAN: In Atlanta, heavy rain triggered flash floods that just swamped streets and backed up traffic around the city. The sudden cloud burst flooded homes and totaled cars in this apartment complex parking lot. These pictures are amazing. Look at the cars in the parking lot at the apartment complex.

(BEGIN VIDEO CLIP)

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

(END VIDEO CLIP)

ROMANS: In Washington, D.C., high winds toppling trees. Unfortunately timing for this city bus. Flash flooding from Monday's heavy thunderstorms flooded Union Station and city streets.

Check this out. The flooding turned the stairs at the metro system's capitol south station into a waterfall.

BERMAN: That's going to leave a mark. There is more potentially dangerous weather in today's forecast.

Meteorologist Ivan Cabrera tracking the forecast for us with the latest.

IVAN CABRERA, AMS METEOROLOGIST: Yes, John and Christine, the weather that we have seeing across Texas, the active weather now, is beginning to shift to the east. And so, all of the shower and thunderstorm activity will be there. In fact, we have been talking about significant rainfall.

Look at this: 2.5 inches in Baltimore. That was a record yesterday. These are the rains we could see again today. Some parts of New Jersey picking four inches of rainfall. This is radar estimated.

You can see it feel right across the Northeast Corridor here. And I think that will continue for today as our frontal boundary is in place. Flood watches remain in effect throughout the remainder of today and into this evening. Forecast radar, you'll be able to see the showers and storms continue to bubble up here. Not expecting severe weather outbreak, but certainly heavy rainfall. So, rivers and streams are high. We could talk about some flash flooding taking place later on this afternoon.

As far as the forecast rainfall, what we are expecting, anywhere from 2 to as much 4 additional inches in the next couple of days -- guys.

ROMANS: All right. Thanks for the warning.

Later this morning, a House committee begins investigating last month's deadly Amtrak train derailment in Philadelphia. The president of Amtrak is expected to testify. Lawmakers want to know why the railroad had not yet installed automatic train control technology on that particularly stretch of track where the derailment took place.

They will also be exploring the need for two-man crews and inward facing cameras. We could learn more about engineer Brandon Bostian, and the actions he took immediately after the crash.

BERMAN: Another House committee will be looking into the Takata airbag mess today. Thirty-four million cars in this country have been recalled because of airbags that could explode with so much force, they spew metal fragments throughout the car. Six deaths have been linked to this defect. Takata's executive vice president, Kevin Kennedy, is expected to testify this afternoon.

ROMANS: A Supreme Court ruling giving legal protection to some violent online threats. The high court has tossed out the conviction of this Pennsylvania man who wrote violent messages directed at his estranged wife on Facebook.

Now, the man sort of adopted a rap persona. He posted the long tirades on Facebook that were the form of rap lyrics. She said and the authorities said, no, they were threats against her life. The Chief Justice John Roberts called them crude, degrading and violent. He said prosecutors failed to prove intent with the threatening material at his estranged wife.

BERMAN: The Supreme Court said the judge in the lower court gave bad jury instruction. What you should consider is the victim perceives the threat to be. Not what was in the head of the suspect at the time. It could go back to the court and they could decide the case again, depending on what the jury said.

ROMANS: And domestic violence survivor groups are upset. They say this is open season on being able to say on social media, things against --

BERMAN: It's a fairly narrow ruling, though. So, it will be interesting --

ROMANS: All right.

BERMAN: The University of Alabama Birmingham reversing field. Announcing it will reinstate the football program that it had decided to get rid of.

[05:20:00] Andy Scholes has that in the bleacher report next.

(COMMERCIAL BREAK)

BERMAN: All right. Six months after making the controversial decision to shutdown its football program, University of Alabama- Birmingham reversing course they will play football again.

ROMANS: Andy Scholes has more on this morning's bleacher report. Hey, Andy.

ANDY SCHOLES, CNN CORRESPONDENT: Hey, good morning, guys.

It is great news for fans of UAB football. It is too little, too late for the players on the team that was terminated. They transferred and left UAB to pursue other opportunities. Now, the president of the university said the program was brought back to life because of millions of dollars of new donations from individuals and local businesses.

(BEGIN VIDEO CLIP)

RAY WATTS, UAB PRESIDENT: We are moving forward. We are moving forward together. We wouldn't be here and we have never seen this level of support until we made the decisions that we could no longer afford to do it in a responsible way. So, this support is new support.

(END VIDEO CLIP)

SCHOLES: UAB will not be able to field a team for the upcoming season. It is not clear if they will be able to get back in 2016 either. But their athletic director said their goal is to get back on the field as soon as possible.

The first time in 37 years, the U.S. pro soccer team will play in Cuba. The New York cosmos are set to play the national team tonight. The first professional game to play in Cuba since President Obama announced the two countries were reestablishing diplomatic relations.

[05:25:04] Devon and Leah Still will be honored next month at the ESPY with the Jimmy V. Perseverance Award. Leah's cancer is in remission, but she did have a setback last week with a complication with the stem cell transplant.

Good news, though, Devon posted this pic yesterday saying Leah's, quote, "doing better while she gives the thumb's up."

Guys, the presentation of the Perseverance Award at the ESPYs is the best moment of the night. Last year, Stuart Scott received the Jimmy V. Award. And, you know, there wasn't a dry eye.

BERMAN: It will be nice to see this year, too.

Andy, thanks so much. SCHOLES: All right.

ROMANS: Breaking news this morning, frantic search and rescue mission. Hundreds of elderly tourists missing after the cruise ship sank. We are live with new developments, next.

(COMMERCIAL BREAK)

ROMANS: Breaking news this morning, a desperate mission to rescue hundreds of tourists missing after the ship suddenly sinks in a storm. We are live with the very latest.

BERMAN: Shakeup at the TSA. Its director ousted overnight, following an alarming failure. Replica bombs and weapons and contraband smuggled past security at airports across the country, 95 percent of the time. Details ahead.

ROMANS: Goodbye Bruce. Hello Caitlyn. Caitlyn Jenner sharing her story of transformation with the world. A history everyone is talking about this morning.

Welcome back to EARLY START. Nice to see you. I'm Christine Romans.

BERMAN: Great to see you. I'm John Berman. Thirty minutes past the hour right now.

And we do have breaking news this morning. A search under way right now on China's Yangtze River. Rescuers just scrambling to save survivors from a cruise ship that capsized in the storm with more than 400 people on board.