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Early Start with John Berman and Zoraida Sambolin

New York Inmate Manhunt; President Obama Says No Complete ISIS Strategy; Battle for Baiji Refinery Ongoing; Terrorists at the Terminal?; Cleveland Cavaliers to Host Warriors for NBA Finals; Tampa Bay Lightning Takes 2-1 Stanley Cup Lead; Team USA Wins World Cup Opener; Aired 5-5:30a ET

Aired June 09, 2015 - 05:00   ET

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

[05:00:02] CHRISTINE ROMANS, CNN ANCHOR: Now of course I asked him what he thinks the Fed should do about interest rates because he famously, famously made some tough calls on interest rates in a very bad time.

JOHN BERMAN, CNN ANCHOR: Erased them.

ROMANS: In the '70s.

BERMAN: A lot.

ROMANS: And it hurt -- and a lot of people said, look, maybe the Fed should be raising interest rates already, you know, take the bad medicine. Pull the punch bowl away. He very wisely did not delve in, he would not take my bait on what he thinks the Fed should do on interest rates.

BERMAN: Smart man. Smart man.

EARLY START continues right now.

ROMANS: Happening now, the manhunt for two escaped murderers ramping up in New York and beyond. Officials grilling a prison employee who knows both escapees. Did she help the pair make a daring getaway?

BERMAN: Still no strategy. A blunt and curious assessment from President Obama explaining the battle to defeat ISIS. So where does the Pentagon go from here? And why would the president admit such a thing before the world media?

ROMANS: Developing overnight, protests after a Texas cop caught on camera appearing to use excessive force. Now word this police officer has been sued for excessive force before. The very latest from Texas straight ahead.

Good morning. Welcome to EARLY START. I'm Christine Romans.

BERMAN: Great to see you today. I'm John Berman. It is Tuesday, June 9th, it's 5:00 a.m. in the East.

And happening right now the manhunt intensifies for two ruthless killers who escaped from a maximum security prison in upstate New York. Officers have now set up new roadblocks. They're using bloodhounds, they're searching door-to-door in the area around the Clinton Correction facility. That's the local search. But the big search is now international. The dragnet stretching from Canada, just 20 miles from the prison, to Mexico where one of the inmates was once incarcerated.

This is a huge effort. Authorities are also zeroing in on just how Richard Matt and David Sweat managed to escape and just who might have helped them.

Let's get the latest now from CNN's Jason Carroll.

JASON CARROLL, CNN NATIONAL CORRESPONDENT: John and Christine, investigators still following up on now hundreds of leads that have come in to them. One in particular in terms of the investigation has to do with a woman who works here at the prison. She knew both Richard Matt and David Sweat. Knew them well. Worked with them tailoring clothes at the prison.

Unclear at this point what if any involvement she may have had with their escape and what an escape it was. Just to recount how it all happened both of them were in side-by-side cells. They somehow got a hold of power tools, were able to cut through a steel wall, maneuvered down a catwalk behind that wall, crawl through underground pipes, just about 24 inches wide. Finally emerging on the other side. Outside of a manhole located just about a block or so from the prison.

I spoke to a man who used to work at the prison. He used to be a guard here at the prison. Worked here for some 40 years. He says everything he knows about this prison leads him to believe that these men had at least, at the very least, inside help.

(BEGIN VIDEO CLIP)

JACK RUGAR, RETIRED PRISON GUARD: Got have a lot of help there somewheres.

CARROLL: Is it your thinking they may have had help from the inside or the outside or maybe a combination of both?

RUGAR: Probably a combination of both. I mean, you don't cut through a steel wall without somebody hearing it.

(END VIDEO CLIP)

CARROLL: Despite these inmates' violent past, both of them were housed in the so-called honor block of the prison. This is the place in the prison where inmates are put who have exhibited good behavior. And so as a result, they had access to other resources, added resource, such as washers and dryers, more outdoor time, access to phones and televisions. Things of that nature.

In terms of the investigation, where we stand now in this massive manhunt, still some more than 300 members of law enforcement on the ground. But at this point, they could be anywhere. Christine. John.

ROMANS: Anywhere. All right. Jason Carroll. Thanks for that, Jason.

Now this morning the president is back in Washington facing criticism for saying at the G7 meeting the U.S. does not yet have a complete strategy for training Iraqi forces to fight ISIS. That assessment, that remark gives a surprising opening to President Obama's foes. They're calling it an admission his ISIS policy is failing.

But administration officials quickly made clear the Pentagon is working on a strategy. There are three basic options for the president's review. Number one, expanding the number of conventional U.S. troops on the ground training the Iraqis. Number two, increasing the number of Green Berets in 12 advise and assist teams now on the ground, and expanding the flow of weapons to Iraqi forces.

CNN's Michelle Kosinski has more from the White House.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, John and Christine. Yes, it is surprising to hear the president say these words. I mean, in any context regarding ISIS that we don't yet have a complete strategy. You know critics are jumping all over this. They've been sending out e-mails reminding people of something the president said almost a year ago that we don't yet have a strategy.

Well, back then, remember, he was only referring to what was going on at the time in Syria. And again, now, I mean, when you look at the totality of what he said during this press conference, he clearly wasn't referring to an overall strategy against ISIS, but how best to accelerate the plan to train and equipped Iraqi forces.

[05:05:16] And he said, you know, it's not just an American question as he waits to get a more complete plan from the Pentagon, which we know could include sending more American trainers there, but it's also something that the Iraqis need to live up to. I mean, he mentioned in some areas there are -- there's a capacity to train more, but there just aren't enough recruits. And that the Iraqi government also has to prove that it's going to continue to be inclusive because the lack of that has deterred more people from joining up there.

Also President Obama expressed confidence that some recent ISIS gains we've seen like the takeover of the city of Ramadi are just temporary and that ultimately ISIS will be defeated. If you look at some recent polls of Americans, though, I mean, just last week about 2/3 said they feel the strategy against ISIS is not going well -- John and Christine.

BERMAN: All right. Thanks to Michelle for that.

There have been a series of new developments in the battle against ISIS. U.S. intelligence officials now believe the wives of many ISIS leaders may play a greater role in operations and communications than previously thought. Officials tell CNN that last month's Delta raid that killed an ISIS leader netted a significant intelligence, including information from the captured wife of one of these high ranking ISIS official, Abu Sayyaf.

ROMANS: CNN has also learned that the U.S. has had its possible -- intelligence on possible locations for this man. This is the head of ISIS, Abu Bakr al-Baghdadi. You rarely see him. This is a sermon he gave in Mosul. This video -- only a few seconds of this exists where we've seen him because he is basically in hiding. Officials say the information that they received about his whereabouts is too late, too vague or just could not be verified. And the U.S. was not able to launch raids or airstrikes targeting the ISIS leader.

Back in Washington, Senators Tim Kaine and Jeff Flake have introduced an authorization for the use of military force against ISIS that they hope will gain bipartisan support. And in London, the prime minister has decided to add 125 more troops to Britain's effort to train Iraqi Security Forces. That brings the U.K. total to nearly 300.

BERMAN: Lots going on. U.S. officials are casting doubt this morning on Iraqi claims that its forces have liberated the strategic oil town of Baiji. Officials with access to the latest intelligence say that only about half of the city has in fact been liberated. ISIS still in control of the other half.

For the latest, let's bring in CNN's Jomana Karadsheh.

Jomana, you know, the nation of Iraq, the official government spokespeople so eager to claim victory any time they can, sometimes getting a little bit out ahead of themselves.

JOMANA KARADSHEH, CNN CORRESPONDENT: And we have seen that happen before, John. What happened over the weekend is Iraqi military officials and also officials from the Shia militias, who are the main fighting force on the ground, came out and declared liberation of the majority of the city of Baiji, saying what remained were pockets of resistance and that there were ongoing clearing operations taking place there.

But as you mentioned, according to the U.S. official with access to the latest intelligence, he says it's too early to declare liberation in Baiji, saying that half the city still remains under the control of ISIS. But when it comes to the Baiji oil refinery, that's Iraq's largest oil refinery, that has been -- most of that complex has been under ISIS control in recent weeks. And the Iraqis have been engaged in intense fighting to try and regain control of that facility.

The official says that there has been some progress made there. That Iraqi forces have managed to open up some sort of supply lines by punching through the outer area of the complex opening up those supply lines to their troops who are already in that complex to try and increase their foothold there to regain control of that very important and extra strategic facility. The battle for Baiji, John, far from over at this point.

BERMAN: No. Far from over. And we've seen so many twists and turns there, I think it will be some time before we know truly the situation on the ground.

Jomana Karadsheh, thanks so much.

ROMANS: All right. A stunning admission this morning from former Bush Defense secretary, Donald Rumsfeld. One of the strongest defenders of the Iraq war. Rumsfeld now reveals some serious hindsight in an interview with the "Times of London." He now says George W. Bush was wrong to think American-style democracy could be installed after toppling Saddam Hussein.

He says, quote, "The idea that we could fashion a democracy in Iraq seems to me unrealistic. I was concerned about it when I first heard those words. I'm not one who thinks that our particular template of democracy is appropriate for other countries at every moment of their histories."

Now whether he told that to his boss at the time, I don't know.

[05:10:03] BERMAN: You have to dissect that statement to understand what he meant.

All right. In the wake of the Texas pool party and all the controversy that has happened since, a Dallas suburb is divided. Protesters there are accusing Corporal Eric Casebolt of the McKinney Police Department of racial misconduct for pushing a girl to the ground and pulling his gun out on two boys. They say he should be fired. But some people who live near the pool say police were there to keep order and that the situation and its aftermath and we're all saying is being blown out of proportion.

The police union concedes that officers should not have used profanity but the union maintains the officers' actions were not racially motivated. Casebolt, who has been put on leave, was sued once for excessive force and racial animus in 2008 but a judge dismissed that case a year later.

ROMANS: The Federal Railroad Administration urging commuter rail lines to ramp up safety. It's recommending train lines look at where they have sharp curves and adjust their automatic train control safety programs to prevent going too fast in those areas. Now if that technology is not available, the federal agency recommends both an engineer and a crew member be at the train's controls. The action comes in the wake of that deadly train derailment in Philadelphia last month.

BERMAN: Concerns about the MERS virus, Middle East Respiratory Syndrome, which can be fatal, is deepening in South Korea. The death toll from this disease which can be passed person-to-person apparently through the air, very easily, has now climbed to seven. The number of quarantined is approaching 2900. The Education Ministry there says more than 2200 schools are closed because of the outbreak.

In Hong Kong, the Hong Kong Security Bureau is advising its citizens to avoid nonessential travel to South Korea over what it calls significant threat from the MERS virus, which again can be spread by close contact.

ROMANS: All right. Time for an EARLY START on your money this morning. Stocks mostly lower around the world. Asian and European shares down. U.S. stock futures barely moving. The move around the world basically tracking a Dow decline of 83 points yesterday. Erasing all the gains for the year.

Apple getting in the music streaming game. The new Apple Music can create playlists and suggests songs based on your habits. It also has a new section with the latest popular songs. It's integrated with Siri. You're all friends with Siri so users can switch tracks with a voice command. It will be available starting June 30th for $9.99 a month with the first three months free.

Of course Apple revolutionized music back in 2003 when it opened the iTunes store. With more people switching to streaming, Apple is entering a crowded space to compete with Spotify, Pandora, Title, and many, many more. And to compete with the boxes and boxes of CDs you have.

(CROSSTALK)

BERMAN: If only I had a CD player that work, right?

ROMANS: Right.

BERMAN: More than 70 airline employees with links to terrorism. You heard that right. 70 employees with links to terrorism. How did the TSA allow them to work at airports in the United States? You can't bring a bottle in your medicine kit, but there are people with links to terrorism working at airports? There's going to be a review today on Capitol Hill. We'll explain.

(COMMERCIAL BREAK)

[05:16:07] ROMANS: How are 73 people with links to terrorism -- 73 people with links to terrorism -- able to land jobs with the TSA? That is the big question this morning for the Homeland Security Department's inspector general.

John Roth set to testify before a Senate committee to explain what they found, how these workers made it through the cracks, were given access to planes, tarmacs, and luggage across the country. Inside jobs for people with ties to terrorism.

CNN correspondent Rene Marsh is in Washington with the latest.

RENE MARSH, CNN AVIATION AND GOVERNMENT REGULATION CORRESPONDENT: Christine, John, the TSA is under the microscope again. The agency in charge of vetting airport employees green lighted at least 73 people who had links to terrorism. That's according to a Department of Homeland Security inspector general report. Now the employees worked for major airlines, airport vendors and other employers. They had access to commercial planes, the tarmac and luggage.

The misstep happened because TSA does not have complete access to every agency's terror watch list. TSA must request specific information from these databases. And if it doesn't request enough information, individuals with terror links could slip through.

Other problems the inspector general found, TSA was less effective in making sure airport workers have not committed crimes that would disqualify them from gaining that secure access at airports and thousands of records used to vet these employees were incomplete or inaccurate.

Now TSA says it is fixing all of these issues. Despite these weaknesses, the report says TSA's vetting process is generally effective in detecting links to terrorism. John, Christine.

BERMAN: That is a crazy sentence, though. Generally effective.

ROMANS: Generally effective.

BERMAN: In tracing links to terrorism. You don't want your TSA employees with links to terrorism.

ROMANS: The other thing, for flyers, what flyers have gone through over the last decade just to get on an airplane has been, you know, insulting and unbelievable. And to know that you could be doing everything right as a passenger and still behind the scenes, they are making terrible mistakes.

BERMAN: That's a fair point. When you know what's going on behind the scene, maybe it's insulting. You know, I don't mind taking my shows off if it's going to keep people safe.

ROMANS: Well, I mind that when you take your shoes off because it is a little insulting.

BERMAN: The Tampa Bay Lightning, they are halfway home in their march toward Lord Stanley's Cup. A late goal brought a big win in game three on the road.

Andy Scholes is in the Midwest to discuss the Stanley Cup and the NBA Finals. "The Bleacher Report" is next.

(COMMERCIAL BREAK)

[05:22:21] BERMAN: The NBA Finals swoops in to Cleveland tonight for game three and Cavaliers fans are hoping that it is their time. Finally their time after a long time to win a championship. They never win.

ROMANS: Andy Scholes has more in this morning "Bleacher Report."

Hey, Andy.

ANDY SCHOLES, CNN SPORTS: Hey, good morning, guys. You know, no one has had it worse over the years than Cleveland sports fans. They haven't won a pro sports championship here in the city in 51 years. They even have names for all the bad things that have happened to them from the shot, the drive, the fumble, the decision. You know, you think they would just be programmed to expect the worst when they get in these championship situations. But that's not what we found here on the ground in Cleveland.

I walked around, talked to a number of fans. And they all told me that they are optimistic, not pessimistic. Thanks mainly to LeBron. (BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: People are hopelessly optimistic and loving of their teams and fiercely loyal.

UNIDENTIFIED MALE: You always fear the worst, but you hope for the best.

UNIDENTIFIED MALE: Cleveland is now. It's our time. Not just as a team but as a city.

(END VIDEO CLIP)

SCHOLES: Now a lot of this optimism may stem from the Cavs' game two win back in Oakland. If they lost that game, this may in fact be a different story. But one thing is for sure, the Q right behind me is going to be rocking tonight for game three. Tip-off between the Cavs and the Warriors is set for 9:00 Eastern.

The Stanley Cup final meanwhile continuing with game three in Chicago. Last night, the Blackhawks grabbed the lead in the goal early in the third period, but just 13 seconds later, off the face, the Lightning scored to tie the game back up. And then Tampa Bay would get another goal with under four minutes to go to grab the lead. The Lightning just shocked the Blackhawks, 3-2, to take a 2-1 lead in the series.

U.S. women's national team playing Australia in their World Cup opening match last night. Hope Solo, despite recent off-the-field distractions dealing with her domestic violence arrest, was on her game in front of the net, coming up with some big time saves.

BERMAN: Wow.

SCHOLES: Then there was Megan Rapinoe carrying a load for the American on offense. She managed two goals as USA wins, 3-1. They are looking for their first World Cup title since 1999. They're going to play again on Friday against Sweden.

Guys, again, out here in Cleveland, I couldn't have believed it. Everyone was very optimistic about the Cavs' chances of winning the NBA Finals. And they actually told me they think the sports curse is already over because they're the champions of free agency winning that with LeBron decided to come back last summer.

BERMAN: They can keep telling themselves that. Look, I hope they have some happiness in their near future. But I don't think you can count on Steph Curry missing basically every shot every game. So I think there can be some problems with it.

[05:25:01] ROMANS: Andy, 9:00 tonight.

SCHOLES: Yes.

ROMANS: 9:00 tonight, you're going to have to take a nap before you go to that game. SCHOLES: I basically don't sleep anymore during the NBA Finals. I've

just booked in, I got three hours of sleep every night for the next week or two.

BERMAN: Commitment. That is the commitment we like to see.

Andy Scholes, thanks so much.

Now Andy left that one key highlight overnight. There is a new champion.

ROMANS: Yes.

BERMAN: A champion of what you ask? The "CNN QUIZ SHOW." Watch.

(BEGIN VIDEO CLIP)

DON LEMON, CNN ANCHOR: We think it's F. Lee Bailey.

ANDERSON COOPER, CNN ANCHOR: That is correct.

(CHEERS)

BERMAN: Yes.

COOPER: How much did you wager? 371 points. That brings you up to 1181. You guys win the game. Congratulations. Nicely done.

(END VIDEO CLIP)

ROMANS: Nicely done. Congratulations.

BERMAN: Thank you very much. Don Lemon.

ROMANS: I never doubted you.

(LAUGHTER)

BERMAN: You doubt me every morning.

ROMANS: Yes.

BERMAN: Don Lemon was phenomenal. It was super fun. That goes to charity. The Tom Joyner Foundation which provides scholarships and aids --

ROMANS: Look at the score. That score looks quite, quite impressive.

BERMAN: Yes. It's roughly 1100 times more than our opponent. We were the only ones to get the sort of final jeopardy question correct. It was a close game right up until the end. Everyone did great. The people who produced it did a great job. Even Anderson was OK asking the questions. It was a lot of fun.

ROMANS: Well, you don't see the teleprompter says, "selfless adlib." BERMAN: I know. No, no. That was -- the EARLY START team wanted me

to adlib selflessly. After we did the story. And they know how hard that is for me.

ROMANS: It's not hard --

BERMAN: The selfless part. Not the adlibbing.

(LAUGHTER)

ROMANS: All right. All right. Three days and counting. These two violent criminals, they're still on the run, folks, after escaping from a maximum security prison in New York. Where are police looking, who do they think could have aided that escape.

(COMMERCIAL BREAK)