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Early Start with John Berman and Zoraida Sambolin

New Tips in Escaped Prisoners Manhunt; Pentagon to Send 450 Additional Advisers to Iraq; McKinney Officer Speaks Out; Jeb Bush in Europe; Stocks Near Record. Aired 5:30-6a ET

Aired June 11, 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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[05:30:50] CHRISTINE ROMANS, CNN ANCHOR: Happening now, new clues in the search for two escaped prisoners. Have the dangerous killers moved into Vermont or could be hiding miles from where they broke out of prison? The new tips ahead.

Hundreds more troops will be heading to Iraq. The president revealing his new strategy to fight ISIS. Will it work? We're live ahead.

Welcome back to EARLY START. I'm Christine Romans. It is 31 minutes past the hour. Nice to see you all this morning.

Happening now, that 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 hold this joint news conference. New York's Andrew Cuomo saying authorities believing Richard Matt and David Sweat had discussed Vermont as a possible destination.

Meanwhile, overnight near the prison, police closed down a key state highway pursuing a tip there. More information also coming to light on the connection between the fugitives and this woman, Joyce Mitchell. She worked as a training supervisor in the prison's tailor shop where they both worked. Her daughter-in-law suggesting she may have been duped into contacting people outside of the prison on behalf of Richard Matt. Paige Mitchell says she believes Matt acted like he was interested in art and talked Joyce Mitchell into contacting people who knew about art on Matt's behalf.

For the latest on the manhunt and on the investigation, let's bring in now 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, thanks so much for that, Jason Carroll. And, again, a lot of developments this morning. We'll continue to follow those for you.

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

The overall American aim here sparking a stronger Sunni fight against the Islamic State. CNN's Michelle Kosinski has more from the White House.

(BEGIN VIDEOTAPE)

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. 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. [05:35:04] 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, thank you for that.

The emphasis on training Sunni and Peshmerga fighters, this push to get weapons into Sunni hands more quickly and directly, the timing following the fall of Ramadi to ISIS. All of 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 put these pieces together, CNN's Ian Lee. Ian, additional trainers, additional weapons, but Iraqi officials still say it's not enough. What do they want?

IAN LEE, CNN REPORTER: Christine, for the Sunni tribes, this is something they've been asking for a long time, training and weapons. They say that's the only way that they can protect their own areas and also take the fight to ISIS in Ramadi and help liberate their own tribal lands. But for the central Iraqi government, they are still demanding more from the United States.

Iraq's Vice President Ayad Allawi has said that they need more intelligence to help combat ISIS. Take a listen.

(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 to hit, what to do. This is unfortunately not available yet.

(END VIDEO CLIP)

LEE: And we've heard this from the Iraq's prime minister as well, that they need to have this intelligence to watch where ISIS moves, to follow them, and to strike them when necessary, to help defeat them. But when Ben Wedeman, CNN's Ben Wedeman, went to the frontlines to talk to the commanders, they said they don't need this training. They do need more weapons. And one general said to Ben that he's been in the military for 35 years, he knows what the United States is capable of and what they can do. And he says he doesn't believe that, seeing what they've delivered, that they're committed to win and to fight ISIS.

ROMANS: There needs to be, Ian, though, a political -- a political change here too. Weapons and training along can't defeat ISIS.

LEE: And this is the fine line, Christine, that the United States is walking. Because if they give everything to the central government in Baghdad to support the Shiites, that they are able to roll over ISIS quickly, that doesn't give them incentive to come and talk and have this dialogue with the Sunnis. And for a unified Iraq going forward, both sides are going to have to come together, bridge the mistrust between them, something that hasn't been able to happen yet.

And when we did see the United States engage the Sunnis when they were occupying Iraq, that is when we saw the really the battle turn around, and the United States really gain ground, when they were able to build this trust with the Sunni tribes. That's something the United States is pushing again. And they hope that it that will be the key to solving the problems in Iraq.

ROMANS: All right, Ian Lee in Cairo. Thank you for putting those pieces together for us, Ian.

An American citizen killed in Syria fighting against ISIS. The State Department confirming Keith Broomfield of Massachusetts died last week. He was fighting alongside Kurdish forces near Kobani. The State Department has been in contact with Broomfield's family. It's not clear his remains will be repatiated 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" newspaper the terror group no longer functioning, a functioning organization, because it's been ripped apart by ISIS.

[05:40:02] 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.

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's spies in three European hotels. All three hotels have hosted nuclear negotiations. That 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. Stocks are up around the world following Wall Street's nice day yesterday. The Dow up 236, best day in a month. Once again it's up for the year. The sell off in bonds continue. The yield on the ten-year note treasury note, wow, the highest now since September. Borrowing costs are rising, everybody.

Do you know where the meat you buy comes from? Soon the answer could be no. The House voted to repeal country of origin labeling laws on beef, pork and poultry. The World Trade Organization says those laws discriminate against imports. Canada and Mexico have threatened trade sanctions, and big food companies like Pepsi, Tyson, Coca Cola, Kraft, they support the repeal. Consumer advocates say no way. Shoppers have a right to know where their food comes from. A big push among consumers in this country over the past ten years or so -- the people want to know where their food comes from. The Senate also needs to approve that repeal.

All right, a now former Texas police officer caught an camera pulling his gun on unarmed teenagers at a pool party now explaining why he did that. Next.

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[05:45:11] ROMANS: An attorney for the McKinney, Texas, police officer seen on video tossing a teenage girl to the ground and pulling his gun on others, he was under stress when he responded to the pool party. Eric Casebolt has resigned from the force, and now, through his lawyer, he's trying to explain his actions and issue an apology.

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: Alina Machado, thank you.

All right, Jeb Bush, he's calling Russia's president a bully. He's polishing his foreign policy credentials in Europe. Where he's off to next -- ahead.

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[05:50:28] ROMANS: Jeb Bush plans to hit the grounding when he officially joins the Republican race for president on Monday. Before that, well, he's got some international credentials to polish during this three nation tour of Europe. Bush is this morning in Warsaw, Poland. He's stressing solidarity against Russia, trying to jump start his campaign that isn't a campaign yet.

We get more this morning 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. 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: That's true. All right, Dana Bash, thanks for that.

All right, your morning omelet is getting more expensive if you can find the eggs to make it. How high will egg prices go? That's next. (COMMERCIAL BREAK)

[05:56:30] ROMANS: I'm Christine Romans. Let's get an EARLY START on Your Money. This morning, stocks very close to records, about 1.5 percent away. Yesterday the Dow climbed 236 points yesterday, passing, now above $18,000. The best day in month put the Dow up for the year. You know, the sell off in bonds really notable here on the realization higher interest rates are coming. The World Bank urging the Fed to hold off on a rate hike. The World Bank lowering its growth forecast because of the risks of higher interest rate.

All right, egg prices are surging, folks. The recent bird flu outbreak in the U.S. really hitting the poultry industry hard. Almost 32 million egg-laying birds have been killed or 10 percent. That means egg prices are climbing. Food companies, they're paying a lot more. It's causing some restaurants to change menus and some grocery stores are limiting the number of eggs customers can buy. They're trying to avoid a shortage. So far, grocery store prices haven't risen as much as wholesale prices, but wholesale suppliers are really encouraging restaurants and the consumers of eggs to try to find different recipes because of the shortage of eggs.

Construction companies shed millions of jobs during the recession, but, boy, how things have changed. Today they say they can't find enough workers with the skills they need. Carpenters, electricians, craftsmen, plumbers, woodworkers. I spoke to Commerce Secretary Penny Pritzker. She said this is all 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're struggling to find enough workers with the skills they need to fill the jobs today. That is another area we have to focus in order to keep the United States on the cutting edge of innovation.

(END VIDEO CLIP)

ROMANS: So if you believe that there is a skills gap, that companies need good workers with the right skims, that means the shortage of workers finally will boost wages. We're starting to see it already in some industries, wages starting to rise.

All right, right now, a huge and growing police presence just miles from where those two dangerous killers escaped prison. A lot of new developments on that this morning. "NEW DAY" is going to pick that up right now.

(BEGIN VIDEOTAPE)

ROMANS: Manhunt expands for two dangerous killers.

UNIDENTIFIED MALE: Searching every building. Not wanting to leave any stone turned.

UNIDENTIFIED FEMALE: The inmates are very manipulative. They try and win you over.

UNIDENTIFIED MALE: They are killers. They are murderers. There is no reason to believe they wouldn't do it again.

POLICE OFFICER: On your face!

UNIDENTIFIED FEMALE: He was already in a very emotional state.

UNIDENTIFIED FEMALE: He felt and believed it was his duty to respond.

ROMANS: Another claim of excessive force by police officers.

UNIDENTIFIED MALE: Based on what I know now, I have no reason to take them off the streets.

UNIDENTIFIED FEMALE: He was tased while he was doing nothing!

(END VIDEOTAPE)

ANNOUNCER: This is CNN breaking news.

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to your "NEW DAY".

Right now, police in upstate New York are following a new lead in the hunt for these two fugitives on the run five days after escaping from a maximum security prison. For all the talk of other states and countries, right now they're looking at an area just miles from the prison.

ALISYN CAMEROTA, CNN ANCHOR: And it is a dramatic scene in Cadyville, New York, right now. Authorities are urging locals to stay inside. They're closing roads, cordoning off a large perimeter. Police choppers are circling overhead and police officers are combing this area by foot.

[06:00:01] This comes from a tip late Wednesday night. So CNN has our reporter stationed along the search area. Let's begin with Jason Carroll with all of the breaking details. What do we know, Jason?