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Early Start with John Berman and Zoraida Sambolin

Massive Manhunt for Prison Escapees in New York; Obama to Meet with Iraqi PM Today; Iraqi Forces Reclaim Baiji; Outrage Over Police Response to Pool Party; Could Russia and Qatar Be Stripped of World Cups? Aired 5:30-6a ET

Aired June 08, 2015 - 05:30   ET

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

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[05:31:10] CHRISTINE ROMANS, CNN ANCHOR: Happening now, a huge manhunt underway for two dangerous inmates escaped in an elaborate tunneling plot from a high security prison.

JOHN BERMAN, CNN ANCHOR: Big, big meeting for President Obama today. He will sit down with the Prime Minister of Iraq. Iraq wants more U.S. help in the battle against ISIS. Will the president give it?

ROMANS: Adding to the pile, a host of new allegations hitting FIFA this weekend. New allegations and why Russia and Qatar could be stripped of their 2018 and 2022 World Cups.

BERMAN: That would be epic.

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

ROMANS: I'm Christine Romans this Monday morning for you. 31 minutes past the hour.

Developing this morning, state, federal, local law enforcement fanning out across New York, laying a dragnet for these two convicted killers who escaped from a maximum security prison. In what sounds like the plot of a Hollywood thriller, Richard Matt and David Sweat tunneled out of Clinton Correctional Facility 20 miles from New York's border with Canada.

CNN's Polo Sandoval has the latest on the manhunt.

(BEGIN VIDEOTAPE)

POLO SANDOVAL, CNN NATIONAL CORRESPONDENT: John and Christine, this morning, the search shows no sign of stopping, particularly here in Dannemora, New York. You see heavily armed police officers and in this case correctional officers staging in the area surrounding the prison itself. In fact, we had to go through three checkpoints to go through this location, police and law enforcement and state and federal authorities checking every vehicle leaving this area and also that's making its way here.

Now, if you look off to the distance, you may be able to see temporary flood lights that have been set up, that actually marks the very spot where this manhole is located. This is the location where Sweat and Matt believed to have used this as an exit point.

Now, just before that, authorities believe that they actually used several tools to dig g through a 24-inch wall in the rear of their cell. From there, they entered a steam pipeline and accessed tunnels and drain as well. So, eventually end up here.

So, this morning, we know that the U.S. Marshal Service now has filed federal warrants for both these men for unlawful flight to avoid prosecution. We also know that the state of New York hoping people will come forward with any help they can, even offering a $100,000 reward for these two individuals.

Two priorities this morning, that's track them down and try to find out how they were able to execute such an elaborate plan -- John and Christine.

(END VIDEOTAPE)

BERMAN: All right, dangerous men on the loose. Polo, thanks so much.

Happening right now, G-7 world leaders meeting at a picturesque castle in the German Alps. This morning, President Obama is set to meet with the Iraqi Prime Minister Haidi al Abadi. They will discuss the battle against ISIS. This follows discussions Sunday on Russia and the fighting in Ukraine.

For the latest from the summit, let's bring in CNN's Atika Shubert. Good morning, Atika.

ATIKA SHUBERT, CNN CORRESPONDENT: Good morning, John. You're absolutely right, Russia dominating the discussion yesterday with Chancellor Angela Merkel. President Obama and her discussed the Ukraine crisis for more than half their meeting and the pressure to keep sanctions on Russia to try and get Russia to loosen its grip on Eastern Ukraine. All of the European nations need to hold on to those sanctions in order for it to really pressure Russia.

Today, however, the focus seems to be on ISIS and the terror threat. President Obama met with a number not just G-7 leaders but also outreach partners, including Iraqi Prime Minister Haider al Abadi earlier today. He will have a one-on-one meeting with the prime minister later on where we may get a statement. We do expect that Prime Minister Abadi may, for example, ask for more assistance, considering the recent setbacks in Ramadi and Anbar Province, but we do not expect President Obama to announce any major military assistance.

[05:35:03] At this point, it's really been described as more of a check in by the president on the situation ongoing in Iraq. John.

BERMAN: I wonder if Haider al Abadi will leave satisfied if the president does not deliver any promises.

All right, Atika, thanks so much. ROMANS: There's a claim of significant victory this morning in the

battle against ISIS. Iraqi troops are mopping up small pockets of resistance from ISIS fighters in the key city of Baiji after declaring complete control of the city center, the main mosques, surrounding neighborhoods. Still raging, though, the battle to retake a major oil refinery, the main strategic asset of that town.

CNN's Jomana Karadsheh tracking the story for us. And, Jomana, the importance of that refinery can't really be overstated because that's one of the ways that ISIS gets its money.

JOMANA KARADSHEH, CNN CORRESPONDENT: Absolutely, Christine. All eyes are on that refinery. Well, we know from the Iraqi officials, at this point, both from the military and the Shia militias who have been the main fighting force on the ground there in Iraq, saying that with the aid of U.S. and coalition air strikes, they have managed to regain control of much of the city of Baiji, the town center and other areas. And they say that they have managed to push back ISIS fighters. They say they withdrew toward Mosul. What is left, they say, is pockets of resistance, as they describe it, and also they say that areas that have been booby-trapped by these fighters, as we have seen them do with areas where they have withdrawn from.

But of course all eyes are on the refinery. What is the situation there? Unclear at this point. This is Iraq's largest oil refinery and it has changed hands several times over the past year. And in recent weeks, we saw ISIS gain control of the majority of the refinery complex. While it's not functioning, of course, it is a key piece of infrastructure that ISIS has dedicated a lot of resources to try to keep hold of. The refinery as you mentioned, Christine, it is important when it comes to the economy, but also very symbolic for them to maintain control of Iraq's largest oil refinery.

While Iraqi officials are describing this as a victory, a lot of challenges remain. Whether they will be able to hold that territory that they've regained around the area is something to be seen. Christine.

ROMANS: All right, Jomana Karadsheh for us in (INAUDIBLE). Thank you, Jomana.

BERMAN: New this morning, the hack of the federal agency computers may affect private citizens in addition to some 4 million federal workers. Law enforcement sources tell CNN that security clearance applications dating back decades may have been part of that hack. Those forms require sensitive personal information of spouses, partners, friends, and others close to the applicant. Sources tell CNN that while serious, the hack of private citizens' data likely compromised, less sensitive information than the one affecting federal workers. Still bad though.

ROMANS: All right, an emotional farewell for the Biden family as Beau Biden is laid to rest this weekend in Delaware. President Obama delivering the eulogy at the packed funeral for the former Delaware Attorney General who lost his battle with brain cancer. The president calling the vice president's 46-year-old son a champion of the people. (BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The son of a senator, a major in the Army, the most popular elected official in Delaware -- I'm sorry, Joe -- but he was not above dancing in nothing by a sombrero and shorts that would shake a laugh from the people he loved. Through it all, he was the constant public servant. A notebook in his back pocket at all times so he could write down the problems of everyone he met, and go back to the office to get them fixed.

(END VIDEO CLIP)

ROMANS: Coldplay singer, a lead singer, Chris Martin, he volunteered to sing at the service after he learned that Beau Biden was a big fan of the band.

It wasn't very long ago that Beau Biden, people thought he was going to run for governor of Delaware. This illness really tragic.

BERMAN: You can see President Obama giving a hug to Joe Biden here, actually kissed him on the cheek. Both men, the president and the vice president, had a difficult time making it through the day. Yes, Beau Biden was a public figure, but so many people were saying goodbye to a friend and a son and a brother. It was a tough, tough day.

All right, 39 minutes after the hour. A history-making hero returns home. Triple Crown winner American Pharoah, he had a little bit of a motorcade there as he made his way back to Kentuckywhere he lives a day after winning the Belmont Stakes. The first horse in 37 years to take horseracing's Triple Crown. His owner and trainer says they do expect to get the horse out again on the track at some point this summer, not sure exactly when. But after this season, there is no question what American Pharoah will be up to, Christine Romans.

[05:45:05] ROMANS: Yes, no comment from American Pharoah about how he's looking forrward to his life on the stud farm.

BERMAN: Exactly.

ROMANS: All right, speaking of money. Let's get an EARLY START on Your Money. Asian shares mostly higher right now. Shanghai up more than 2 percent; that's a seven year high for Shanghai. European and U.S. stock futures a little bit more cautious; they're down a bit right now. One stock that's climbing right now, Deutsche Bank. That's because the bank's co-CEOs resigning from their post after three years there. They're leaving earlier than expected because the bank has paid out billions of dollars in recent years for legal issues. A board member will gradually take over that position. This shakeup brings into question the future direction of Germany's largest bank. It has 100,000 employees worldwide.

BERMAN: All right, a pool party and the situation that followed after has an officer in trouble this morning. Why some people are calling for that officer -- you saw him pull a gun right there -- why they're calling for his badge. Stay with us.

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BERMAN: In Mckinney, Texas, outrage over the aftermath of a pool party. Look at this video. It shows a police officer confronting a group of teenagers, ultimately throwing one to the ground and pulling his gun on others. The officer has now been disciplined or at least suspended without pay -- or with pay, I believe. An investigation is under way.

Let's get more now from CNN's Nick Valencia.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN NATIONAL REPORTER: John and Christine, an officer responding to a disturbance at a pool party has been put on administrative leave.

[05:45:04] The incident started on Friday night when police neighbors called them about a group of teen who did not have permission to be at a private pool and were refusing to leave. In the 7 1/2 minute clip, the officer can be seen rounding up teens, wrestling one to the ground and at one point, the officer unholsters his weapon and points it at the crowd.

At a press conference on Sunday, the police chief in McKinney talked about the incident.

CHIEF GREG CONLEY, MCKINNEY POLICE DEPARTMENT: Several concerns about the conduct of one of the officers has been raised. A formal investigation into the incident has been started. And the officer involved is on administrative leave pending the outcome of the investigation. The McKinney Police Department is committed to treating all persons fairly under the law.

VALENCIA: The police chief says he will look into the officer's actions. They launched a full investigation within their department -- John, Christine.

(END VIDEOTAPE)

ROMANS: Just the pulling the gun on a bunch of teenagers in swim suits, just really -- just -- that will be interesting to see what that investigation finds out.

Let's take a look at what's coming up with Chris Cuomo from "NEW DAY". Hi, Chris.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": Hey, how are you, guys? Happy Monday. Wow, this story about happened inn upstate New York at this supposedly super-max prison is just getting more and more amazing to figure out. Not only did they find a way to cut through their wall like "Shawshank Redemption". I guess they dug out there. But they put dummies in their beds, like "Escape from Alcatraz", and now they're finding more and more about all the different things they did to get out. They left notes for guys there. Now the investigation is taking a look at people inside and outside the prison who may have helped them. And these are bad guys. One of them killed a cop; another of killed his boss and dismembered him. There's a big reward. Obviously my brother's the governor of this state; he's going to be on because it's a huge manhunt. So they're looking inside and outside. So we're going to take you through all of that this morning.

We also have new poll numbers to talk to you about this morning that give insight into how this current administration is doing, what people are happy about and not, as we try to start changing focus, Christine and John, to where are people in this? It's like all the insiders are talking to themselves. Where are the people? And of course we'll also take down what you have been looking at this morning, this new video of police chasing the teens. Is a line crossed here that is clear and bright? We'll go through it.

BERMAN: Looking forward that a lot on the show. And Chris, your knowledge of prison break movies is both impressive and curious, all at the same time. Thank you, Chris.

CUOMO: Is that an Italian crack?

(LAUGHTER)

BERMAN: Just saying, you know film. I'm impressed by your knowledge of film.

ROMANS: See you later, Chris. The already embattled FIFA slammed with new allegations. Why future World Cups may be in jeopardy. That's coming up.

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[05:51:23] BERMAN: New developments this morning in the corruption scandal swirling around world soccer. Over the weekend, FIFA's head of compliance told a Swiss newspaper that the 2018 and 2022 World Cups could be stripped from Russia and Qatar if it is proven that bribes bought the votes to give each country their bids. If they lost them, it would be huge.

Let's bring in CNN senior international correspondent Frederik Pleitgen who's following all this for us. Good morning, Fred.

FREDERICK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, John. Yes, you're absolutely right, it would be huge, it would be unprecedented. However, at this point in time, the head of that compliance committee also says he doesn't have any proof yet that the votes were bought in order to get those World Cups to Russia and to Qatar, respectively. However, it would be a major incident.

We always have to keep in mind as well that one of the finalists for the 2022 World Cup was the U.S. So could the World Cup possibly go there if things happen? I mean, at this point in time, it's impossible to say what's going to happen next. There are so many allegations out there. It's almost difficult to keep track of them.

Let me fill you in on the latest one that happened over the weekend. There was a report in the newspaper, "The Sunday Times" here in England. They brought forward videos that allegedly showed FIFA officials talking about how they'd received bribes to put the 2010 World Cup to South Africa. They also said apparently that some of them thought that South Africa hadn't even won that vote, that it was Morocco, another country that was in the running, that had gotten the most votes. But when it came down to it, however, that Sepp Blatter had given that World Cup to South Africa. Another big allegation that happened is that $10 million that were given to the North American Foundation were apparently used for one man's private account.

So a lot of allegations out there and you're absolute right, difficult to keep track of them. Big developments have happened.

BERMAN: Yes, Fred, you get a sense this is just the beginning. All right, Frederik Pleitgen for us, thanks so much.

ROMANS: All right, where is the best place to retire? Think sunshine year round, think lots of cacti, a round of golf, perhaps? That's next.

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[05:57:22] ROMANS: All right, good morning. I'm Christine Romans. Let's get an EARLY START on Your Money this morning.

College tuition is climbing. So are the salaries of university presidents. The average public college president earned $428,000 last year. That's up 7 percent from a year earlier. At the same time, annual tuition at public four-year colleges has climbed about 30 percent, or $2,000. The top paid president, Penn State's Rodney Ericson. He stepped down from this position at the end of last year, making about $1.5 million.

If you are planning your retirement, consider Phoenix. A new study this morning says it is the best place to retire. Also on this list, Arlington, Virginia, right outside D.C., Prescott and Tucson, Arizona. Wow, three Arizona cities in the top five, and then Des Moines, Iowa.

BERMAN: You put Iowa in there just because.

ROMANS: No, no, this is from Bankrate. I did not put Iowa in on purpose. I'm just pleased to see some place in my home state is on there. Factors like cost of living, crime rate, walkability all considered. What city should you avoid? No surprise. New York City ranked dead last. Not a great place to retire, apparently. It's all the steps and the walking, you know. When I'm 95, am I really going to be able to walk up six flights of stairs?

BERMAN: You might have to.

ROMANS: Maybe I will be.

BERMAN: All right, two dangerous men are on the loose this morning. There is a manhunt underway for convicted killers who staged a dramatic escape from a high security prison. "NEW DAY" with the latest on the manhunt starting now. (BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: A massive manhunt is under way for two convicted killers on the run.

UNIDENTIFIED MALE: It's clear that they used power tools to escape.

UNIDENTIFIED MALE: All available assets are being brought to bear.

UNIDENTIFIED FEMALE: Iraqi forces say they are now in full control of the city of Baiji.

UNIDENTIFIED MALE: They're grateful to the coalition for airstrikes.

UNIDENTIFIED FEMALE: Baiji is home to the largest Iraqi oil refinery.

COP: I told you to stay. Get your (EXPLETIVE) down on the ground!

UNIDENTIFIED MALE: A formal investigation into the incident has been started.

UNIDENTIFIED MALE: These are children. They've got to be able to handle things in a better manner than this.

(END VIDEOTAPE)

ANNOUNCER: This is "NEW DAY" with Chris Cuomo, Alisyn Camerota, and Michaela Pereira.

CUOMO: Good morning. Welcome to your NEW DAY. It is Monday, June 8th, 6:00 in the East. And we have a serious manhunt underway right now for two dangerous inmates. They took a page right out of a movie to pull off this wild prison break in upstate New York. Two bad guys, convicted killers. Both were at check in Friday night, both gone the next morning. And how they did it has investigators in a tizzy. They cut through steel walls and pipes. They left notes as they exited a maximum security prison and are now at large and considered very dangerous.

ALISYN CAMEROTA, CNN ANCHOR: So a $100,000 reward is being offered to find the convicted murders, Richard Matt and David Sweat.

[06:00:00] A lot of questions this morning. Did these two have insider help? And who is hiding them now?

Let's begin our coverage with CNN's Polo Sandoval. He's live in upstate New York.