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Early Start with John Berman and Zoraida Sambolin
Sweat Says They Planned to Flee to Mexico; Greece Financial Crisis: Deadline Approaches; Obama to Expand Overtime Pay. Aired 4:30- 5a ET
Aired June 30, 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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[04:31:14] JOHN BERMAN, CNN ANCHOR: New details this morning on how two killers broke out of prison. The captured inmate sharing the information about their plan and what went wrong.
CHRISTINE ROMANS, CNN ANCHOR: Wall Street having its worst day of the year. Greece's financial crisis sends markets around the world down sharply. The deadline past approaching. Will Greece default on its debt and what does this mean for your money? We're live.
BERMAN: Breaking overnight. The president with a plan to help millions of Americans make more money in overtime. Details ahead.
ROMANS: That's a really big development. They've been working hard on that for a long time.
BERMAN: Welcome back to EARLY START, everyone. I'm John Berman.
ROMANS: I'm Christine Romans. Thirty-one minutes past the hour.
Happening now, a prison escapee, he is talking. The one surviving convict broke out of a New York maximum security prison is now answering some questions from investigators.
Thirty-five-year-old David Sweat is in a secure unit of the Albany Medical Center, being treated for two gunshot wounds suffered during his capture. He has been upgraded from critical to serious condition. And now, Sweat is revealing details how he and Richard Matt escaped, their plans to flee with Joyce Mitchell, and how from their standpoint it went so wrong.
CNN's Miguel Marquez has the latest.
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MIGUEL MARQUEZ, CNN CORRESPONDENT: Christine, John, David Sweat is speaking out and investigators want him to keep talking and want to get him well, as quickly as possible. He is the best link they have to describe how he and Richard Matt were able to escape from that maximum security prison, telling them so far that plan A was, in fact, Joyce Mitchell. That they were going to meet her as soon as they popped up out of the manhole and kill her husband and then go to Mexico. Perhaps toasting margaritas while watching this unfold here.
That did not, obviously, workout, saying that when she didn't pick them up, they had to figure out a plan B. They did not do very well. They only got about 32 miles in 22 days, about a mile and a half a day. Not breaking speed records in you are running from the law, also telling investigators he split with Richard Matt earlier because he was slowing him down.
Investigators say that Richard Matt smelled of alcohol when he was shot dead on Friday afternoon and that he was dressed in camouflage fatigues, heavy boots, sort of like a hunter, and that the bug bites on him were bad but that he wasn't as swollen as they thought he would have been, saying it is likely they had some ability to cover themselves or some sort of cover or stayed in the cabin for some time and weren't out in the elements for the entire time they were on the run.
What's next for Mr. Sweat? He is going to get better here, say hospital officials, and they will charge him with the breakout, burglary and anything else that he did illegally while he was out on the loose and then he will go back to prison and even face court on those other charges -- Christine, John.
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BERMAN: All right. Our thanks to Miguel for that.
New information revealed by David Sweat could be good news for corrections officer Gene Palmer. Palmer is charged with aiding the escape by passing frozen hamburger meat to the inmates. It turns out there hacksaws inside that meat. Officials now say that David Sweat has told investigators Palmer was not involved in the escape and he did not know about the blades in the meat and that the plot involved Sweat, Matt and Joyce Mitchell. She was the tailor inside the prison.
Even so, officials believe others may have had a hand in the escape if only unwittingly.
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SHERIFF KEVIN MULVERHILL, FRANKLIN COUNTY, NY: For as intelligent as these guys are, breaking out of the maximum security prison, evading police for three weeks, Joyce Mitchell was plan A. I think there's probably going to be others that are implicated, that may or may not know they played a role in this. You know, some small thing that somebody did for them, you know, when you add those all up, it's kind of like building a wall.
[04:35:02] You know, everybody think provided a brick, so to speak, until their plan was complete.
(END VIDEO CLIP)
BERMAN: And new this morning, in the aftermath of the mess at Clinton correctional, the FBI is launching a federal investigation. Agents are probing possible corruption and drug trafficking by prison employees. Officials briefed on the inquiry tell CNN that investigators are looking into the escapees were involved with the alleged drug trade and enjoyed greater freedom on the honor block because of that.
ROMANS: All right. To money now, European stocks are down. They are lower as Greece heads for default.
After months of negotiations went nowhere, Greece cannot make a $1.7 billion payment that is due to the IMF today. Now, Greece's existing bailout program officially expires today. Lenders refuse to extend it until after a referendum vote on Sunday. The Greek crisis posing a threat to the global economy, with fears of contagion or ripple effect in Europe. All of that uncertainty.
Look at this global sell off. The Dow down 350 points. Right now, U.S. stock futures and Asian shares are bouncing back a bit from yesterday's losses. European stocks are lower again.
The Greek prime minister urging voters, Greek voters, to stand behind him. He is asking his country to reject the European bailout proposal at the ballot box. Now, that referendum is set for Sunday. After -- after it is due to pay an important payment to the IMF. The prime minister hinting he will resign if voters decide to accept what he calls an insulting ultimatum and the austerity that goes with it.
European leaders say a no vote will effectively force Greece out of the euro, something polls show most Greeks do not want.
For the latest, let's bring in CNN's Isa Soares live in Athens.
This is going on for five years, Isa. And I say people have Greece fatigue. They say now, come on, it was five years ago people taking to the streets, you know, protesting against austerity. Here we are at the end of the road. What's so bad about Greece leaving the euro?
ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Where do we start, Christine? You know, I have been covering Greece for many years in terms of the economic crisis. I was here when Alexi Tsipras was elected with the powerful speech, promising so many pledges, so many bold promises to end austerity, bring an end to austerity, a new beginning for Greece.
But, you know, the cues we've been seeing today, Christine, if Greece is out of the euro, people don't have to worry because they won't have any money in those cash points, in those ATMs, and that is the concern, because the ECB if Greece is out of the euro, Greece, voters say no Sunday to the proposals, there won't be any support from the ECB.
They won't have support from the ECB, they won't have any support from the IMF, if they don't pay the IMF deadline today by 6:00 p.m. Washington Time. Then you loose a lot of tourists. At the same time, you cannot borrow money on the international markets.
So, really, Greece's hands are tied here in Greece. You really thought that with this scenario, that perhaps may influence Greeks come Sunday to vote for the proposals. We were looking at the latest poll and it's not very recent. The latest poll before Friday's announcement there will be a referendum, 60 percent of the people would back the proposals. 40 percent have said no.
So, interesting how that is faring out. If it goes the way of the yes vote, then perhaps Europe can continue negotiating with euro. If it goes the other way, it seems clear coming from European officials, that there is nothing left to do. Greece and the Greek people would have spoken -- Christine.
ROMANS: All right. Isa Soares, thanks for that.
John, to say it is the 11th hour of the 11th hour is an understatement. I mean, this has been going on for so long, through various governments by the way, various Greek government and it's just really sort of the end of the road for what Greece does here.
BERMAN: Frankly, Europe is sick of it, which is one reason it may come to an end right now. Europe saying, we've had enough and we're going to let you go if you want to go.
Greece is not the only place facing debt crisis this morning. Officials in Puerto Rico say there is no way the U.S. commonwealth can repay the $73 billion it owes. The government-run energy company PEPRA has a debt repayment due on Wednesday which will likely default on. The island's governor is asking Congress for authority to declare chapter 9 bankruptcy the way Detroit did earlier.
ROMANS: All right. President Obama set to announce a major move, the White House says, will boost salaries for millions of Americans. About 5 million people will get a pay raise right away. He will change overtime rules, more than doubling the minimum salary level to qualify for overtime pay.
The threshold right now is $23,000 a year, that's going to rise to about $50,000.
[04:40:02] If you earn less than that, once the rule is in effect next year, you will get overtime if you work more than 40 hours a week. Anybody who worked in retail or restaurants, you know you can get overtime for your work unless you are considered sort of a manager. Sometimes you can be making $23,000 a year and be a manager and not get overtime. Now, that level is going to be $50,000. A big difference.
BERMAN: All right. NBC Universal is cutting ties with Donald Trump, citing the derogatory statements made during his presidential campaign kickoff announcement in which Trump made harsh comments about Mexican immigrants. This is what he said.
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DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: They are bringing drugs, they are bringing crime, they are rapists and some, I assume, are good people.
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BERMAN: They're rapists. So NBC will no longer air the Miss USA and Miss Universe pageants, which have been a joint venture with Trump. And NBC says it will explore ways to continue "Celebrity Apprentice" without him. Trump will not be on "Celebrity Apprentice."
Trump fired back Monday, calling NBC weak and also standing by his remarks.
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DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I have a great relationship with Mexico. How can I not love people that give me tens of millions of dollars for apartments? You have to love them.
My stance on immigration is correct. And some people may not think so, but ultimately, my stance is correct.
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BERMAN: Today, Trump will be back in New Hampshire where a CNN poll puts him in second place among the Republican presidential candidates. Tweet us if you watched Miss Universe or Miss USA.
BERMAN: All right. After teasing American with a campaign video and the slogan, "Telling It Like It Is", Chris Christie is set to officially enter the Republican race for president. The New Jersey governor expected to make the announcement this morning in his hometown high school in Livingston, New Jersey, beautiful Livingston, New Jersey. The Christie campaign will then hit the ground rounding, holding a town hall later tonight in New Hampshire.
He's really going -- he's doubling down on New Hampshire. New Hampshire is --
BERMAN: It's more than doubling down. It's everything. It's like quadrupling down.
The State Department plans to release a set of e-mails today from Hillary Clinton's tenure as secretary of state. Officials are not saying how many emails will be released. The first round of about 300 were made public last month, offering a glimpse of her handling of the Benghazi situation. The former secretary turned over roughly 30,000 e-mails from her private server which she used almost exclusively to conduct both private and government business while she was secretary of state.
Forty-two minutes after the hour. Fourth of July terror alert. The White House is talking about a new ISIS threat.
ROMANS: Plus, new arrests in the ISIS-inspired hotel massacre. What we are learning this morning about the gunman and the attack. We are live.
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[04:46:16] BERMAN: Federal officials are warning this morning the threat of Islamic terror is the highest it has been in years. The FBI has ramped up suspects in the counterterrorism efforts to fight radicalization of young people online. This as the White House is addressing concerns of the domestic terror attacks by ISIS over the Fourth of July holiday.
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JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: There is no specific credible intelligence to indicate any threats against celebrations over the Fourth of July weekend. However, we have repeatedly seen calls for violence over the past year by the leadership and supporters of ISIL, against members of the military and military installations, law enforcement, the U.S. government and the American public.
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ROMANS: Authorities in Tunisia have announced a number of arrests in connection with Friday's terror attacks on a popular beach hotel. The arrest was part of a nationwide manhunt for accomplices. ISIS is claiming responsibility for that attack which killed 38 beach goers, the majority of those victims were from the United Kingdom British Prime Minister David Cameron has promised a full spectrum fight against extremism against his country.
Senior international correspondent Nick Paton Walsh is in Sousse, Tunisia, with the very latest.
And, clearly, the prime minister very concerned about what happened there on the beach and online radicalization. What do we know about the man who perpetrated this attack?
NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, actually, in the video you just saw there over the attack, later, the gunman is seen to throw his phone into the sea. Now that is, I'm sure, key to the unfolding investigation, which we understand the Tunisia officials say he has links to, quote, "Libyan terror groups".
Now, they're specific as to which one. Remember, ISIS in a statement said they were behind the attack and released a picture of the gunman, too, suggesting they knew something about it, but authorities have not pointed finger at him directly. Instead, they're saying Ansar al-Sharia, another militant group with some links to al Qaeda and also some links to ISIS, too, across the border in Libya, they may be one of the groups or it may be ISIS.
That part of the investigation is still fuzzy. It is vital to whether or not this is an ISIS sponsored attack. They also say, as you pointed out, yes, radicalized online, it's unclear if he traveled abroad as part of his move in what many describe as sleepy hometown as a punctual, hard working, extremely polite man who worked in a coffee shop there how he turned into the gunman who shot 38 people, many of them just on their swimwear on the hot sands here.
So, a lot of questions still to be answered. They seized laptops and documents from his home. They are plowing through those. They think his roommates maybe involved. Three of those are questioned now. We hear the first arrests have been made. We don't know if those are the roommates or potentially some of the students he studied with are also being looked as potentially a source of radicalism.
On top of that, too, as we stand here, we are hearing that the prime minister believes that this will have potentially some sort of impact on the Tunisia economy. Many here year after year and some say they continue to come back. Some are deeply concerned about safety, of course -- Christine.
ROMANS: One thing about the video, Nick, so compelling are the hotel workers rushing toward the sound of the gun fire trying to help the people on the beach. That resonates from the video.
Nick Paton Walsh, thank you for that.
BERMAN: All right. New this morning, Iran sending top diplomats to the Iran nuclear talks. New developments as the deadline inches closer. We are live in Tehran with what the leaders are saying and what the Iranian people are saying this morning. That's next.
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[04:53:36] BERMAN: New developments this morning in the last minute negotiations in the Iran for nuclear deal. Iran is now sending a group of senior officials perhaps highlighting new high stakes in these discussions.
CNN's Frederik Pleitgen is in Tehran with the very latest this morning.
Good morning, Fred.
FRED PLEITGEN, CNN SENIOR POLITICAL CORRESPONDENT: Good morning, John. The chief negotiator, the foreign minister, Javad Zarif, was only yesterday to get guidance. After that, he went back to Vienna for the talks with the high level delegations, including the head of Iran's atomic energy agency, also a top level advisor (INAUDIBLE) as well. They are back (INAUDIBLE) trying to hammer out an agreement and (INAUDIBLE) come to some sort of solution. Certainly, there are a lot of people who want agreement, but a lot of skeptics.
And there's two (INAUDIBLE). The Iranians don't want --
BERMAN: All right. We are having audio problems with Frederik Pleitgen. The Iranian foreign minister back in Vienna today for discussions, as well as top nuclear scientific officials, as well as people very close to the Iranian prime minister. So, you get the sense now that changes are at least a change in the tenor of the negotiations is possible in these last key moments. The deadline for negotiations officially today, but both sides they will be extended at least by a few days.
[04:55:02] ROMANS: Speaking of deadlines, John, a very big deadline with Greece. Greece about to default on its bills today. It is a huge deal for your money, for your stock investments. Were going to let you know where that stands right after the break.
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ROMANS: All right. Welcome back. I'm Christine Romans.
Let's get an early start on your money this morning. European stocks are lower again this morning. Greece can no longer pay its bills or won't pay its bills. It's expected to default on the $1.7 billion payment to the IMF due today.
Now, Greece's existing bailout program officially expires today. It is tumbling toward an exit from the eurozone. All of that is causing a selloff, a big one in stocks yesterday.
Look, the Dow down 350 points. The worst drop in two years. What is happening right now? Futures looking a bit more optimistic. At this moment, if things hold, you get a bounce in the U.S. stock market, even though European shares are still lower.
Big news from Apple. It is officially entering the music streaming subscription game today. To check out Apple Music, you have to download an iOS upgrade. This comes out around 11:00 a.m. Eastern time. At that time, Apple's Beats 1 radio station curated by real DJs, by the way, John Berman, goes live.
Users will add to the iTunes library, save songs for offline listening and share music with friends. It's free for the first three months. After than, 10 bucks a month or 15 bucks for a family plan.
And yes, you'll be able to get your Taylor Swift. She resolved her conflict.
BERMAN: As long as Taylor Swift says OK, I'm OK, and that's my mantra for life in general.
EARLY STARTS continues right now.
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BERMAN: New information this morning on how two killers escaped from prison and where they were going.
