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Early Start with John Berman and Zoraida Sambolin

Prison Escapees May Be in Vermont; The War on ISIS: Obama's New Strategy; Jeb Bush Across Europe; Will Flight MH370 Ever Be Found? Aired 4:30-5a ET

Aired June 11, 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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[04:31:07] CHRISTINE ROMANS, CNN ANCHOR: Happening now: new focus in the search for two escaped prisoners. Have the dangerous killers moved into Vermont or could they just be miles from the prison they broke out of? The new tips ahead.

Hundreds more troops heading to Iraq. The president reveals his strategy to fight ISIS? Will it work? We're live.

Welcome back to EARLY START. I'm Christine Romans. Thirty-one minutes past the hour. John Berman has the morning off this morning.

Happening now: the manhunt for two convicted killers who escaped from a maximum security prison in upstate New York, refocusing this morning on western Vermont.

The governors of New York and Vermont holding a joint news conference. New York's Andrew Cuomo saying they believe Richard Matt and David Sweat had discussed Vermont as a possible destination.

Meanwhile overnight, near the prison, police closing a state highway pursuing a tip there.

More information also coming to light on the connection between those fugitives and this woman, Joyce Mitchell, who worked as a training supervisor in the prison's tailor shop. Mitchell's daughter-in-law suggesting she may have been duped into contacting people outside the prison for Richard Matt. Paige Mitchell says she believed Matt acted like he was interested in art and talked to Joyce Mitchell into contacting people who supposedly knew about art on Matt's behalf.

For the latest on the manhunt and the investigation, let's bring in CNN's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Christine, New York state police say that they are going to be redoubling their efforts, retracing their steps, including right here in this neighborhood, in front of the prison and knocking on doors again, searching every building, not wanting to leave any stone unturned. They have some 500 leads that they are going to be following up on, including one lead that seems to suggest that these two fugitives may have a plan to visit Vermont. The reason why? Vermont's governor weighed on that.

GOV. PETER SHUMLIN, VERMONT: We have information that suggests that they thought that New York was going to be hot. Vermont would be cooler in terms of law enforcement and that a camp in Vermont might be a better place to be than New York.

REPORTER: Do you know where in Vermont?

SHUMLIN: We do not.

CARROLL: New York's governor says it's important to follow-up on all leads, including the lead involving Joyce Mitchell. You remember her, Christine. She is that prison employee that was brought in for questioning over the weekend. There had been allegations that she had befriended both of these inmates.

I spoke to her daughter-in-law at length. She said that 95 percent of what is being put on in the media is simply untrue. Paige Mitchell said this, quote, "I'm appalling to me. I'm totally disgusted that anyone would think she would knowingly help them. She would never want a criminal near her family."

There's also been talk about whether or not that Joyce Mitchell had some sort of a plan to help these inmates once they had escaped out through that manhole, allegations that she was going to provide some sort of a getaway car. I asked Paige Mitchell about that as well. She said that that is absolutely ridiculous. She said, her heart was in the right place, but, quote, "she was trying to do something nice and it back fired" -- Christine.

(END VIDEOTAPE)

ROMANS: All right. Jason Carroll, thank you.

The Pentagon this morning moving forward to carry out President Obama's orders, sending 450 additional American troops to Iraq to aid the Iraqi fight against ISIS. The new personnel will focus on training Sunni tribesmen and Kurdish Peshmerga fighters. The U.S. also moving to speed up delivery of weapons to the Sunnis, a response to Sunni complaints that weapons are now delayed as they pass through Iraq's Shiite-dominated central government.

The overall American aim here, sparking a stronger fight against the Islamic State.

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

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MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, Christine. Right. So, these are 450 additional U.S. troops sent to a key area in Iraq, Anbar province, between Ramadi and Fallujah, two cities that have been since taken over by ISIS. [04:35:07] They're going to be on a military base, but not the White

House says not in a combat role. Again, their job is to advise, assist and train Iraqi forces, basically help the Iraqis help themselves.

The U.S. also wants to stream line the process of getting more equipment to the Iraqis, help them get the recruits that they need, especially from Sunni tribes.

But, you know, the question is there, that if these problems have existed for some time within the Iraqi army and this kind of assistance and more has been considered for some time, why wasn't this and more done before the fall of Ramadi?

And sending now significantly more U.S. troops, doesn't that indicate that there were underestimations in what was needed in the first place? What we just got from the White House I think as much of an admission that there had been problems as we're going to get. U.S. officials said, yes, the fall of Ramadi was a setback. Yes, forces need to be more nimble in fighting ISIS, which has been nimble. And they need to react more quickly when there are shortfalls.

U.S. officials said that this is a problem they are trying to solve. Among the criticism out there coming from members of Congress, especially Republicans, is that more needs to be done, that the president needs to lay out a more detailed strategy and questions over how much good really these additional U.S. troops are going to be able to do -- Christine.

(END VIDEOTAPE)

ROMANS: All right. Michelle Kosinski, thanks for that.

The emphasis on training Sunni and Peshmerga fighters. The push to get weapons in the hands more quickly and directly, and the timing following the fall of Ramadi to ISIS. This revised U.S. strategy against ISIS now seems to put less reliance on Iraq's central government and military to win the fight -- at least in Anbar province.

Joining us to help put the pieces together, CNN's Ian Lee.

Ian, despite the additional trainers and these new weapons, Iraqi officials are still saying this is not enough. What is it they want?

IAN LEE, CNN REPORTER: That's right, Christine. For the Sunnis, they have been calling for more weapons and more training for quite a while in their confrontation with ISIS. It looks like they are starting to get that.

But for the central government, they say they still need more. They need more weapons. That is one of the key things. And also, they need more intelligence. One Iraqi official talked to CNN about this.

(BEGIN VIDEO CLIP) AYAD ALLAWI, IRAQI VICE PRESIDENT: I don't think this is the frankly the only answer. This may be part of the answer and small part of the answer. I know we are in need of training and in need of equipment and in need of weapons. We are in need of intelligence, to get intelligence, provide intelligence, to know where are the strong points of ISIS, where are the weak points of ISIS, where territory, what to do. This is unfortunately not available yet.

(END VIDEO CLIP)

LEE: Christine, when CNN visited the frontlines, talking to the commanders there, they told us that what they needed is more weapons. They say they have the training. They know how to defeat ISIS. They just need the weapons to do it.

And another commander who has fought with -- against the United States, also has had training by the United States, says that he's skeptical the U.S. is in it to win it. He says that they have the means. They have the power. They have the weapons and the capabilities to defeat ISIS. He says he just hasn't seen that yet, Christine.

ROMANS: All right. Ian Lee. Thank you so much for that. Putting all those pieces together, and the new American strategy to fight ISIS in Iraq.

An American killed in Syria fighting against ISIS. The State Department confirming Keith Broomfield of Massachusetts died last week, fighting alongside Kurdish forces near Kobani. The State Department has been in contact with Broomfield's family. It's not clear how his remains will be repatriated since the U.S. has no diplomatic presence in Syria.

The rise of ISIS could spell the demise of al Qaeda. Two of al Qaeda's top spiritual leaders telling "The Guardian" the terror group is no longer a function organization because it's been ripped apart by ISIS. They say al Qaeda's leader, Ayman al-Zawahiri, is now completely cut off from his commanders. The ISIS propaganda machine dominating the recruiting war in the Middle East at the expense of al Qaeda.

New evidence the Israelis may be spying on the Iran nuclear talks. According to "The Wall Street Journal", a cyber security firm based in Moscow has detected a computer virus frequently used by Israel spies in three European hotels. And all three hotels have hosted the nuclear negotiations. The virus could allow hackers to infiltrate computers, phones and Wi-Fi networks. The Israelis are not commenting.

Time for an early start on your money this morning. Stocks up around the world. U.S. leading the way here. Dow climbed 236 points.

[04:40:00] It's best day of the month. It's a -- wow, it's once again up for the year, the Dow is.

The selloff in the bond market continues. The yield on the ten-year treasury note is now the highest since September on expectations the U.S. economy is growing and doing well, and that will allow the Federal Reserve to raise interest rates.

It's official. Los Angeles is bumping its minimum wage. City council yesterday approved a 66 percent hike to 15 bucks an hour. L.A. joins Seattle, and San Francisco, but it is the largest city to make the move. That means big ramifications for all the companies that do business there. The federal minimum wage has been stuck at $7.25 since 2009.

A now former Texas police officer caught on camera pulling his gun on unarmed teens at a pool. He is now explaining what was going through his head why he did that.

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ROMANS: Jeb Bush plans to hit the ground running when he officially joins the Republican race for president on Monday. Before that, he is polishing his international credentials with a three-nation tour of Europe. Bush is in Warsaw, Poland, today. He's been stressing solidarity against Russia, even calling Vladimir Putin a bully. He's trying to jump start his campaign that isn't a campaign yet.

We get more from CNN's Dana Bash.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Christine, it's not unusual for a candidate, or in this case, an almost presidential candidate, to make his way across the pond, here to Europe, in order to show that they're comfortable on the world stage.

[04:45:01] That's exactly what Jeb Bush is doing here in Europe right now. He started out in Germany. Now, he is where I am in Warsaw, Poland, and then, eventually, he's going to make his way to Estonia.

And the theme that you've already heard from him is that he believes that he and the United States should be much more aggressive, much more involved in helping particularly these countries that used to be part of the Soviet Union beat back on the aggression of Vladimir Putin. He even called him a bully on this trip. So, that is really a big part of the trip and reason why he is here.

But there is another reason, and that is to give him and his campaign a reset button, if you will. He has not been able to break-away from the pack. He has not been able to scare other competitors off of the field. That has hurt him maybe unfairly. But the fact of the matter is, his last name is Bush and the expectation was that he would be a little bit more ahead of the game at this point.

So, they are hoping this trip will kind of wipe the slate clean. He'll be able to go back, in just a few hours after he lands back in the United States, he's going to make his announcement official and he's going to hit the ground running. That is what we're going to see from Jeb Bush over the next several days. Not your typical pre- announcement trip, but this election is anything but typical. (END VIDEOTAPE)

ROMANS: All right. Thanks for that, Dana Bash.

If Hillary Clinton is elected president, her husband stands to lose millions. Bill Clinton says if Hillary does win, he will likely step off the lecture circuit -- a lecture circuit which has earned him more than $100 million since he left office in 2001. Clinton also said he'd like to stay involved with the family foundation for as long as possible to ensure they have raised enough money to fund its global charitable work.

ROMANS: An attorney for the McKinney, Texas police officer, seen on video tossing a girl to the ground and pulling his gun on the others said he was under stress when he responded to the pool party disturbance. Eric Casebolt resigned from the force and now through is lawyer trying to explain his actions and say he's sorry.

We get more from CNN's Alina Machado.

(BEGIN VIDEOTAPE)

ALINA MACHADO, CNN CORRESPONDENT: Christine, an attorney representing that former police officer says her client is receiving death threats and he is so concerned about his family's safety that they are staying at an undisclosed location for now.

She also shed some insight into Eric Casebolt's state of mind Friday, saying that before he responded to the pool party and was recorded slamming a teenage girl into the ground and pointing his gun on other teens, he had responded to two suicides -- one involving a man who shot himself in the head.

The attorney says her client, who was named Officer of the Year in 2008, was emotional and he allowed the emotions to get the best of him. She says he regrets his actions.

JANE BISHKIN, ATTORNEY FOR ERIC CASEBOLT: He never intended to mistreat anyone, but was only reacting to a situation and the challenges that it presented. He apologizes to all who are offended.

MACHADO: Now, there is still an ongoing investigation into what happened and at this point, it is unclear if Casebolt will be facing any criminal charges -- Christine.

(END VIDEOTAPE)

ROMANS: All right. Alina, thank you for that.

A new theory this morning on why Malaysia Airline 370 disappeared without a trace, as one airline executive gives a grim prognosis for the search. We are live with the very latest, next.

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[04:52:12] ROMANS: It has been 15 months since Malaysia Airline Flight 370 simply vanished en route from Kuala Lumpur to Beijing. Officials now confirming the search zone in the Indian Ocean will not be expanded beyond its current perimeter. A top executive with an airline says it is only a matter of time it will be abandoned, calling the mission to find the jetliner a goose chase.

CNN's Anna Coren live from Hong Kong.

Hi, Anna.

ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: Yes, hello, Christine.

That's right. The president of Emirates, Tim Clark, describing the search for MH370 as a goose chase at an airlines conference in Miami this week. Obviously, those comments have been described as insensitive, especially from the families of the 239 people onboard. Because these people, they are holding on to hope.

That is all they have. There is no wreckage, no debris, no information as to what happened to the Boeing 777 15 minutes ago.

So, to hear that it's merely a goose chase just is so hurtful. They are coming to terms to the fact that their loved ones will never be walking back in the door. So, to think that the remains of the plane won't be found is unfathomable.

We know the Australian authorities who are in charge of the search in Australia. They are saying that unless anything is located in the priority search zone, which was expanded from 23,000 square miles to 46,000 square miles, if nothing is found in that area, in the Southern Indian Ocean, if it's no new credible information of the aircraft, then the search will be called off some time early next year, Christine.

ROMANS: You know, Anna, tell us about the theory that explains how the plane could have disappeared without a trace into the ocean. What is that theory?

COREN: Yes, there is this math professor in Qatar who has come out with the theory that the plane nose dived at a 90 degree angle into the ocean. Hints the wings were snapped off and the debris went straight to the ocean floor and fuselage, everything of the plane, hence there was no debris, no wreckage floating on the surface, because we remember in those initial weeks, nothing was found. Once they finally identified the southern Indian Ocean as the resting place of MH-370.

He also says that is the reason there was no oil slick. Christine, as we know, over the last 15 months, there's been so many theories bandied about as to what actually happens to the plane. But as authorities to continue to say, until they locate those black boxes, then really nobody knows what happened.

ROMANS: All right. Anna Coren for us this morning -- thank you. Still a mystery 15 months later. Thanks, Anna.

All right. Your morning omelet is getting more expensive if you can find the eggs.

[04:55:00] Just how high will egg prices go and are we talking about rationing eggs? That's next.

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ROMANS: Welcome back. I'm Christine Romans. Let's get an early start on your money this morning.

Stocks very close to records here. Yesterday, the Dow, look at that, 236-point rally. Above the 18,000 mark. That was the best day of the month, put the Dow again positive for the year.

The selloff in bonds brutal, folks. The realization that higher interest rates are coming. You know the World Bank is urging the Fed to hold off on interest rate hike and lowering the growth forecast because of the risks, said an interest rate hike is difficult for emerging markets. But it is coming eventually, folks.

Egg prices are surging. The recent bird flu outbreak has hit the poultry industry hard. Almost 32 million egg laying birds have been killed. That's about 10 percent. That means egg prices are climbing. Food companies are paying more. It's causing some restaurants to change their menus.

Some grocery stores are limiting the number of egg customers can buy to avoid a shortage. That's right. You can only buy a certain number of eggs. Now, so far, grocery store prices haven't risen as much as wholesale prices. But that could change as suppliers say the shortage isn't going away, and even suppliers have been saying to food service companies, change your menus.

Construction companies shed millions of jobs during the recession, but now, they can't find enough workers with the skills they need. Listen up. Carpenters, electricians, plumbers, craftsmen, they need your work and they are paying for it.

Commerce Secretary Penny Pritzker, she said this is part of a growing problem for companies.

(BEGIN VIDEO CLIP)

PENNY PRITZKER, COMMERCE SECRETARY: I've probably talked to 1,800 CEOs around the country. And they all tell me they are struggling to find enough workers with the skills they need to fill the jobs they have today.