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Early Start with John Berman and Zoraida Sambolin

Prison Break Tools In Frozen Meat?; Charleston Gunman's Racist Spiral; Confederate Flag Tipping Point?; President Addressing Race Head On; Cyberattack On Federal Workers Grows; Tornadoes Touch Down. Aired 5:30-6a ET

Aired June 23, 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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[05:30:09] JOHN BERMAN, CNN ANCHOR: New clues breaking overnight. Could they be bringing investigators closer to finding two dangerous killers who escaped from prison? We have brand-new information on that manhunt, ahead.

CHRISTINE ROMANS, CNN ANCHOR: Should the confederate flag be banished? Government leaders from South Carolina to Mississippi now want to remove the controversial symbol. And one mega retailer says it's going to pull the confederate flag from store shelves.

BERMAN: And then, stunning words, or more specifically, a stunning word from the president on the issue of race in the United States. A blunt interview , what he said that is stirring debate this morning.

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

ROMANS: I'm Christine Romans. It's 30 minutes past the hour. Nice to see you this morning.

Important new leads in the manhunt for two inmates escaped from a New York maximum security prison. Authorities finding DNA from Richard Matt and David Sweat inside a burglarized hunting cabin near the town of Owls Head. That's in upstate New York.

It's less than 20 miles west of the prison the two broke out of about 17 days ago. Now, after a witness spotted someone running into the woods near the cabin over the weekend, about 1,000 officers descended on the tiny community with helicopters, ATVs and cruisers.

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UNIDENTIFIED FEMALE: How confident do you feel about these leads?

KEVIN MULVERHILL, FRANKLIN COUNTY SHERIFF: All options are open and everything's on the table. And like I say, I think these are the best leads that we've had since the escape.

UNIDENTIFIED FEMALE: Are you confident that they are here in your area, in your county? MULVERHILL: I'm confident that if they're here, we're going to catch them.

UNIDENTIFIED MALE: The information that's come in in the last 48-72 hours has been more credible and better leads probably than we've had since the escape. And I think the noose is starting to tighten.

(END VIDEO CLIP)

ROMANS: Law enforcement source tells CNN the detectives are combing through guest registries from hotels in the prison area, months of them, looking for someone, anyone with a connection to the escapees.

Officials also have a new theory on how the inmates got their hands on tools to break out of prison. For the latest on the investigation and that new theory, let's turn to CNN's Jason Carroll.

JASON CARROLL, CNN CORRESPONDENT: Christine, John, investigators calling this one of their most significant leads to date, that evidence found inside that cabin, materials linking these two inmates to DNA that they also were able to extract from the materials found inside that cabin.

Again, a significant lead for investigators, but that's just one of the developments in this story, a story that just seems to have one strange development after another.

This one has to do with how these inmates allegedly got some of that contraband inside the prison. We're hearing from a source that perhaps it came through frozen hamburger meat. And I say that again, frozen hamburger meat.

And investigators are looking into the possibility that contraband and/or tools were hidden inside frozen hamburger meat delivered to Richard Matt just a week before his escape. That, again, coming to us from a source here on the ground.

Now, you should also know that these two men collected their contraband over a lengthy period of time, but it is believed that one of the guards there at correctional facility passed this frozen chunk of hamburger meat into the prison.

It did not go through metal detectors, which is a violation of prison policy. These two inmates, as you know, housed in what was the so- called honor guard and the honor block, and as such, they were allowed to cook. That was one of their privileges.

They were allowed to cook there in their cells. So, this is just one of the many points that will be investigated as this investigation moves forward -- Christine, John.

BERMAN: Our thanks to Jason for that.

New details this morning about the months leading up to the deadly rampage at Emanuel AME Church in Charleston, South Carolina, in February, the killer apparently launched a racist website with a long, hate-filled manifesto.

In April, he used the money from his 21st birthday to buy a gun. Then he began a twisted tour of South Carolina historic sites connected to slavery and the confederacy.

But instead of the race war this man says he hoped to spark, the shooting seems to have set off political change across the south. Later this morning, a rally is planned at South Carolina's State House, calling on lawmakers to support removing the confederate battle flag.

This comes after the South Carolina governor, Nikki Haley, joined both of the state's U.S. senators and called for the flag's removal. After that happened, the speaker of the Mississippi house said he wants to see the confederate symbol removed from his state's flag. It's actually part of the Mississippi state flag.

CNN's Ana Cabrera is in Columbia, South Carolina.

ANA CABRERA, CNN CORRESPONDENT: John and Christine, the confederate flag still flies out front of the South Carolina State Capitol, but now the governor, Nikki Haley, is joining calls for the flag to go. And this sets up a debate that will likely play out in the next few weeks inside the state capitol and end with an eventual vote by state lawmakers, which will determine the flag's future.

[05:35:09] But the governor's announcement just reverses what she said in previous statements in which she supported the placement of the flag here on state capitol grounds alongside the confederate war memorial, saying it symbolizes the state's heritage.

But she says, in light of the Charleston church massacre, she recognizes that this flag means different things to different people, and for some, it symbolizes hatred and racism, and she says that has no place on state capitol grounds.

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GOVERNOR NIKKI HALEY (R), SOUTH CAROLINA: For good and for bad, whether it is on the state house grounds or in a museum, the flag will always be a part of the soil of South Carolina, but this is a moment in which we can say that that flag, while an integral part of our past, does not represent the future. Today we are here in a moment of unity in our state, without ill will, to say it's time to move the flag from the capitol grounds.

(END VIDEO CLIP)

CABRERA: Bottom line, only state lawmakers have power to remove the flag, and it will require a two-thirds majority to agree for the flag to come down. There does seem to be some momentum going that direction, but we'll have to wait and see -- John and Christine.

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

Walmart removing all confederate flag merchandise from its stores. Walmart.com has carried the flag as well as attire featuring the flag, like t-shirts and belt buckles. Now the country's largest retailer says it doesn't want to offend anyone by selling these products. Some other major retailers still sell the merchandise including Amazon and eBay.

Quick check of the markets for you right now, stocks, European and Asian stocks are much higher this morning on hopes of a Greek debt deal. U.S. stock futures are up, too, a very good day yesterday. The Nasdaq climbed to a record close. The Dow gained 104 points.

BERMAN: President Obama will travel to Charleston, South Carolina, on Friday. The president, the first lady, and Vice President Joe Biden will attend the funeral for the pastor of Emanuel AME Church, the Reverend Clementa Pinckney. CNN's Michelle Kosinski has the latest from the White House.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, John and Christine. Right, it was interesting to hear, after so many questions have been directed to the White House, when is the president -- is he going to visit Charleston?

Now they've announced that he and the first lady and the vice president will be going there on Friday for the funeral of Reverend Clementa Pinckney, someone the president had met and knew personally. And the president will deliver the eulogy.

It almost seems like we're in this new period of how the president engages on and addresses race. I mean, we've heard several speeches lately where he uses extremely direct language.

Speaking of which, this hour-long interview that he did with a comedian in a garage for a podcast called "WTF," the headline, of course, though, that the president himself used the "n" word.

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BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: And it's not just a matter of it not being polite to say nigger in public. That's not the measure of whether racism still exists or not. It's not just a matter of overt discrimination. We have -- societies don't overnight completely erase everything that happened 200 to 300 years prior.

(END VIDEO CLIP)

KOSINSKI: Well, clearly, there is a shock value in that. That's the headlines around the world. But the White House is denying that the president planned this out ahead of time. They said he was simply making a point in an informal setting, and it just kind of came out.

And some analysts are saying it is about time we hear the president speak so directly on this subject. Of course, not everybody's happy that he decided to use that word in particular, but then we're also hearing from people who are saying they're surprised that people are surprised. I mean, this is a word we don't even feel comfortable using, really, when we're talking about that word. But it's hard to imagine that the president didn't think about the provocative power of it when he decided to use it, even if it was on the spot. And this kind of discussion is clearly what the White House wants -- John and Christine.

BERMAN: He knew what he was saying, for sure. Michelle Kosinski, thanks so much.

Four Republican presidential candidates are distancing themselves from the head of a white supremacist group who may have inspired the Charleston church shooter. Earl Holt, leader of the Council of Conservative Citizens, has donated thousands to the campaigns of Ted Cruz, Rand Paul, Scott Walker and Rick Santorum.

Three of the four candidates have announced they are donating those contributions to the Mother Emanuel Hope Fund in Charleston.

ROMANS: All right, the cyber-attack targeting millions of U.S. federal workers, guess what, it is so much bigger than anyone thought, 18 million workers' private, personal information stolen. Who's behind the data breach? We're live next.

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ROMANS: It appears the cyber-attack targeting federal employees much more far-reaching than first thought. The number of employees affected now not the 4 million we were initially told. It's about 18 million likely growing. The U.S. pointing the finger at China, but what does Beijing have to say? Let's turn to CNN's David McKenzie in Beijing for that. Good morning, David.

DAVID MCKENZIE, CNN CORRESPONDENT: Good morning, Christine. China is saying that it is irresponsible for the U.S. to release these accusations through in general unnamed officials in our and others' reporting. They have also said that in fact they want to get around the table with the U.S. and discuss some of the issues around cyber security.

But they put the blame on the U.S. as being also those who are coming and hacking here in China. A lot of finger-pointing going on right now. Why is this important? Well, 18 million and counting potential former, current and prospective federal employees have had their personal information hacked, according to authorities.

Now, that's particularly troubling when you look at those employees who are trying to get security clearance for sensitive jobs potentially in homeland security in the U.S. Now, it seems like this would have been used for a two-stage attack, and some have said it's kind of classic spy craft.

But on an industrial, in fact, exponential scale because it's targeting those individuals online. Again, China said it's not responsible, but if not, then who is -- Christine.

ROMANS: David McKenzie. China says we didn't do it, but you do it, too. So, that's how that goes usually in that game. Thanks, David.

BERMAN: All right, let's look at what's coming up on "NEW DAY." Michaela Pereira joins us now. Good morning.

MICHAELA PEREIRA, CNN ANCHOR, "NEW DAY": Good morning to the two of you. We have a debate today over the confederate flag that is hanging in both South Carolina and Mississippi in the wake of the Charleston massacre. We'll talk with top Republican voice Rudy Giuliani and ask him if it's time for the rebel symbol to go, and also, why aren't more presidential candidates weighing in on this very hot issue?

We're also going to speak with a defender of the confederate symbol on Mississippi's flag. He has fought to keep the state's flag intact. What does he think about the new push to remove the image? Obviously, very hot topic, both sides very heated in this debate. We'll take a look at it today.

ROMANS: Bo and Luke Duke in the second hour. Kidding. That was a joke.

BERMAN: All right, thanks, Michaela, so much and of course, Walmart pulling the confederate flag out of its stores, a big, big move.

ROMANS: And the flag manufacturers are saying they've been having conference calls and discussions about whether they should even be manufacturing confederate symbols.

BERMAN: More breaking news this morning, tornadoes touching down overnight, dozens of buildings destroyed, several people injured. We'll give you the latest next.

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BERMAN: Tornadoes tearing into the upper Midwest overnight. In Sterling, Illinois, west of Chicago, the local mall had its roof ripped off. No reports of injuries there, luckily.

[05:50:02] At a nearby town, emergency officials say damage to a major campground is catastrophic, but they have been able to rescue five people who were trapped inside trailers.

In Cole City, Illinois, a twister reportedly sparked fires and left people trapped inside buildings.

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UNIDENTIFIED MALE: Walking up to my grandmother's trailer, the whole entire front frame from the tree hitting it caved down on my grandmother's car, and there was no roof now on her trailer. And then the only safe spot was in the back bedroom, master bedroom, where she was. And just looking down the main hallway down the trailer, you can see the tree branches and all the tree trunks inside the trailer literally just caved all into the trailer.

(END VIDEO CLIP) BERMAN: In Eastern Michigan overnight, a tornado did severe damage in the town of Millington, toppling trees and tearing apart houses. Crews are still in rescue mode there. There was also a twister in Portland, Michigan, that ripped roofs off of homes and churches, and collapsed a goodwill store there. Five people were injured there.

ROMANS: And it's not over. That severe weather is moving into the northeast today. Meteorologist Pedram Javahari tracking that for us from the CNN Weather Center.

PEDRAM JAVAHERI, AMS METEOROLOGIST: John and Christine, good morning to you. Yes, look at active weather across the Midwest, finally beginning to taper off just a little bit, of course, into the early- morning hours we've lost some of the heating that really causes these storms to blossom.

And that is good news, but still spawned some 13 reports of tornadoes, a lot of them centered over Illinois, portions of Eastern Michigan. The concern is these storms now moving in towards areas of the northeast.

And by this afternoon, we could be putting some major cities in line for active weather. And notice the thunderstorms, the models really begin to push them into D.C. by 3:00 or 4:00 in the afternoon, New York City and portions of northern New Jersey certainly getting in on the action as well.

But nearly 70 million people in line for some active weather and the largest threat, the enhanced risk stretches from New York and Philly and Boston as well. Damaging winds, large hail, of course, can't rule out tornadoes.

We know this line of active weather has had a history of putting a few down, so we'll watch that. Heat indices into the mid-to-upper 90s. Portions of D.C. getting up to 103 degrees this afternoon, what it will feel like, 107 the heat index across Charleston and Atlanta gets up to around 100 degrees.

And the pattern, again, changing here as far as the front moving through. Yes, it will bring in active weather, but the good news is, once it passes, a pretty good cooling trend in the forecast across the northeast -- guys.

ROMANS: All right, thanks for that, Pedram.

A woman will be featured on the $10 bill. Why is a former fed chief so appalled by that decision? We'll tell you next.

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[05:56:22]

ROMANS: Good morning. I'm Christine Romans. Let's get an EARLY START on your money this morning. Looks like a good day for stocks, folks. European and Asian stocks much higher, U.S. stock futures up a bit too there. Great day yesterday. The Nasdaq climbed to a record close, all because of a potential Greek debt deal. For the first time in months of negotiations, Greece's creditors suggested a last-minute deal to avoid default is now in sight.

OK, so, Ben Bernanke is appalled by the treasury's plan to add a woman to the $10 bill. The former fed chair says he's behind Secretary Jack Lew's goal of putting a woman on a bill, but that shouldn't come at Alexander Hamilton's expense.

BERMAN: Poor Alexander Hamilton.

ROMANS: Bernanke says Hamilton was the best economic policy-maker in economic history, helping stabilize the financial system in America's early days. Bernanke suggests revamping the $20 instead, calling Andrew Jackson, quote, "a man of many unattractive qualities."

BERMAN: So, he's going negative on Andrew Jackson in support of Alexander Hamilton.

ROMANS: He is. He is. Who would you like to see on the bill?

BERMAN: You know, it's a piece of paper! I want -- just change it, it's OK, it's not a big deal! England's got the queen. They have a queen on all their bills.

ROMANS: My vote is Harriet Tubman.

BERMAN: I would like to see Harriet Tubman.

ROMANS: General Mills the latest to boot fake ingredients. The makers of Lucky Charms and Count Chocula are axing the artificial coloring for all its cereals. The world will never be the same.

Some will still be colored with natural choices like juices and spices instead of red dye number 40. It's to appeal to millennials, who apparently don't like all that fake stuff.

BERMAN: I don't know what's wrong with them. As long as the purple horseshoe is still purple, I don't care whether it's artificial or not, right?

ROMANS: They say it will take time to change the coloring of the marshmallows. Apparently, they're the trickiest thing to use --

BERMAN: I'm going to stock up on lucky charms just to get my red dye number ho for eternity.

All right, should the confederate flag be banished not just from South Carolina? Now also the debate turns to Mississippi and corporate headquarters as well. "NEW DAY" picks it up right now.

(BEGIN VIDEOTAPE)

HALEY: It's time to move the flag from the capitol grounds.

UNIDENTIFIED MALE: It's a memorial to our ancestors as we fought a war defending our land. UNIDENTIFIED MALE: This is an issue they should debate and work through and not have a bunch of outsiders going in and telling them what to do.

UNIDENTIFIED FEMALE: Officers saying they have confirmed their most credible lead yet.

UNIDENTIFIED FEMALE: The president himself used the "n" world.

PRESIDENT OBAMA: Do you think that it de-synthetizes word if the president uses it?

UNIDENTIFIED FEMALE: I don't think he should have said it.

UNIDENTIFIED MALE: Certainly the president got our attention.

(END VIDEOTAPE)

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to your NEW DAY. It's Tuesday, June 23rd, 6:00 in the east. And we have new information on the manhunt for two fugitives in upstate New York. We're going to give that in a moment.

But first, this is a serious issue. South Carolina lawmakers made quick changes, and they changed their tune as well about their confederate flag. The state's Republican governor, Nikki Haley, is now calling for the flag to be removed from the grounds of the state capitol. This, of course, in the wake of last week's church massacre.

ALISYN CAMEROTA, CNN ANCHOR: And the furor over the confederate symbol spreading across the south with a top Mississippi lawmaker is now demanding changes to his state's flag.

So we begin our coverage with CNN's Ana Cabrera. She is live in Columbia, South Carolina with all of the latest for us. Good morning, Ana.

CABRERA: Good morning. There is already a lot of energy out here today, a much different story than what we saw just 24 hours ago and we are expecting a huge "take down the flag" rally to happen here at the state capitol in just the next few hours.