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Early Start with John Berman and Zoraida Sambolin

Captured Inmate Reveals Escape Plan; Greece Financial Crisis: Deadline Approaches; Obama to Expand Overtime Pay; No. 2 USA Takes on No. 1 Germany Tonight. Aired 5-5:30a ET

Aired June 30, 2015 - 05:00   ET

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


[05:00:00] JOHN BERMAN, CNN ANCHOR: New information this morning on how two killers escaped from prison and where they were going. Inmate David Sweat, he is talking to investigators, and we have new details of what he is saying this morning.

CHRISTINE ROMANS, CNN ANCHOR: U.S. stocks have the worst day in two years. Greece has just hours to figure out how to save its economy. We are live in Athens.

BERMAN: Breaking overnight. The president with a new plan the White House says will boost paychecks for millions of Americans. This is a big move, folks. You want to hear what it is.

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

ROMANS: I'm Christine Romans. It is 5:00 a.m. in the East this Tuesday morning.

BERMAN: Happening right now: a prison escapee is talking. The one surviving convict who broke out of a New York maximum security prison is now answering some questions from investigators, 35-year-old David Sweat is in a secure unit at the Albany Medical Center. He's 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 about how he and Richard Matt escaped and plans to flee are prison employee Joyce Mitchell, and from his vantage point, how it went so horribly wrong.

CNN's Alexandra Field has the latest.

(BEGIN VIDEOTAPE)

ALEXANDRA FIELD, CNN CORRESPONDENT: Christine, John, a New York state police sergeant shot David Sweat in this field, just two miles south of the Canadian border. He took two bullets to the torso, but he's already talking to investigators about his plans to cross a d different border. Sweat now tells officials that he and Richard Matt planned to travel with Joyce Mitchell to Mexico. But they had to turn to plan b when she failed to show up with the getaway car the night the convicted killers escaped from that maximum security prison.

Sweat is also telling officials that he and Richard Matt separated five days before Matt's death. The older escapee was slowing him down. Sources close to the investigation have told CNN that Richard Matt's

body smelled heavily of alcohol after being shot and killed on Friday afternoon. They say they have also found evidence showing that he was suffering from illness, possibly from contaminated food or water -- Christine, John.

(END VIDEOTAPE)

BERMAN: All right. Our thanks to Alexandra for that.

New information revealed by David Sweat might 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 were hacksaw blades inside that meat. Officials now say that David Sweat has told investigators that Palmer was not involved in the escape, that he didn't know about the blades in the meat and plot involved Sweat, Matt and Joyce Mitchell. She was the prison worker, the tailor inside the prison. Even so, officials believe others may have had a hand in the escape if only unwittingly.

(BEGIN VIDEO CLIP)

SHERIFF KEVIN MULVERHILL, FRANKLIN COUNTY, NY: For as intelligent as these guys are, breaking out of a 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. You know, everybody provided a brick, so to speak, until their plan was complete.

(END VIDEO CLIP)

BERMAN: New this morning, in the aftermath of the decline con 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 whether the escapees were involved with the alleged drug trade and enjoyed greater freedom in the honor block because of that.

ROMANS: All right. To Europe now, where European stocks are down right now. Greece is heading, barreling for a default on its obligations. After months of negotiations, Greece will not or cannot make a $1.7 billion payment to the IMF today. The bailout program expires today. Lenders refused to extend it until after a referendum vote called for Sunday.

The Greek crisis posing a threat to the global economy, fears of a ripple effect in Europe in particular. All of that uncertainty triggering a global selloff yesterday. U.S. stocks, the Dow had their worst drop in two years. Right now, U.S. stock futures and Asian shares are bouncing back a bit from yesterday's losses. But again, European stock markets are lower right now.

The Greek prime minister urging voters to stand behind him, to reject the European bailout proposal at the ballot box. A referendum on that proposal set for Sunday. He is hinting he will resign if voters decide to accept what he calls an insulting ultimatum, an ultimatum he says will push the country further into economic ruin. European leaders say a no vote will effectively force Greece out of the euro, which would also mean economic ruin.

For the latest, let's bring in CNN's Isa Soares live in Athens.

Really a bunch of bad choices all around here, Isa.

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Oh, absolutely. They are stuck between a rock and hard place.

Talking to many people yesterday, it is do you want to go extremely bad or extremely worse. Those are the options for people here.

[05:05:01] But this is down now, Christine, to Alexis Tsipras. It's decision day for him. Will he pay the IMF, 1.6 billion euros, $1.7 billion to the IMF? If he doesn't, then it will be the first developed country to default on the IMF payment and join the list of countries such as Somalia and Zimbabwe. And, you know, for Greek people here, they will say we shouldn't pay the IMF. We feel asphyxiated.

And speaking yesterday on television, very bluntly actually on television, speaking for about an hour. Alexis Tsipras said I want to quote him here. He says, having asphyxiated banks and denied extension requests, is it reasonable, he says, to expect the IMF will be paid tomorrow. He did not answer that question, but you can guess.

But yesterday on CNN, the economy minister told our very own Richard Quest that no, they won't make the payment. So, we will have to see. They have until 1:00 a.m. here, 6:00 p.m. in Washington to make that deadline. It does make that payment, but it doesn't look like it is going that way, Christine.

ROMANS: All right. Isa Soares, thank you for that, ISA.

And, John, it is just a dangerous situation because you got these other members of the European Union who have taken their bailout medicine and who are slowly crawling out of it and made the big concessions and, you know, there are worries if you had a big problem with Greece, they could suffer again.

BERMAN: Although right now, it seems Europe has stemmed the possibility of contagion right now. They work for the last five years on that.

Greece is not the only place fascinating a huge 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 there has debt repayment due tomorrow, which it will likely default on. The island's governor is asking Congress to declare chapter 9 bankruptcy. Legally speaking, it doesn't have that authority. It needs Congress to step in to provide it. ROMANS: A lot my sources say the next financial crisis around the

world is the big debt countries with too much debt, and you're saying that rear its ugly head this week.

OK. President Obama set to announce a major move. The White House says it will boost salaries for millions of Americans. He is going to change overtime rules, more than doubling the minimum salary level to qualify for overtime. So, right now, $23,000 a year is that threshold. They're going to raise it to $50,000. If you earn less than $50,000, once the rule is in effect, you are a salaried employee, you will still get overtime if you work more than 40 hours a week.

BERMAN: NBC Universal cutting ties with Donald Trump, citing what they called derogatory statements he made during his presidential kickoff announcement. Trump said controversial stuff about Mexican immigrants listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: they are bringing drugs. They're bringing crime. They're rapist. And some, I assume, are good people.

(END VIDEO CLIP)

BERMAN: They're rapist. But some maybe good people.

So, the NBC says it will no longer air the Miss USA and Miss University pageants which have been a joint venture with Trump. NBC says it will explore ways to continue "Celebrity Apprentice" without him. They're going to keep "Celebrity Apprentice." Trump will not be on it.

So, Donald Trump fired back Monday because that is what he does. He called NBC weak and he says he is standing by his controversial remarks.

(BEGIN VIDEO CLIP)

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.

(END VIDEO CLIP)

ROMANS: So, he is doubling down and he is saying that NBC is weak. They said they stood beside lying Brian, he said Brian Williams.

BERMAN: Exactly.

ROMANS: He brings in a dig at Brian Williams in the whole statement.

BERMAN: Donald Trump is going to take his campaign or whatever it is he is doing to New Hampshire today. CNN right now, a recent poll, has him in second place in New Hampshire.

ROMANS: Which he also pointed out several times yesterday, that he is number two in New Hampshire.

All right. After teasing America with the 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 at his hometown high school in Livingston, New Jersey. The Christie campaign will then hit the ground running, holding a town hall later tonight in New Hampshire.

Sort of crowded New Hampshire.

BERMAN: Very crowded. Look, Chris Christie has a New Hampshire or bust strategy going on right now.

The State Department plans to release a new set of e-mails from Hillary Clinton today in her tenure as secretary of state. State officials not saying how many e-mails released. The first round were made public last month, offering a glimpse of what was going on at the State Department during the Benghazi situation.

The former secretary turned over roughly 30,000 e-mails from her private server which she used to conduct private and government business while secretary of state.

ROMANS: The White House on the record on the fears that ISIS wants to use that holiday to attack America.

BERMAN: Plus, new arrests in the ISIS inspired hotel massacre. We are live with new information this morning.

[05:10:01] Terrible video, too. That's coming up next.

(COMMERCIAL BREAK)

BERMAN: New this morning, officials warning the threat of Islamist terror is the highest it has been in years. The FBI has ramped its surveillance of some suspects and bolstered counterterrorism efforts to combat radicalization of young people online. This coming as the White House addresses concerns about the possibility of domestic terror attacks by ISIS over the Fourth of July holiday.

(BEGIN VIDEO CLIP)

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.

(END VIDEO CLIP)

ROMANS: Authorities in Tunisia have announced a number of arrests in connection with Friday's terror attack on a popular beach hotel. The arrest, a part of the nationwide manhunt for accomplices. ISIS is claiming responsibility for the attack which killed 38 beach goers. A majority of the victims were from the United Kingdom.

British Prime Minister David Cameron promised a full spectrum fight against the extremism against his country.

Senior international correspondent Nick Paton Walsh is in Sousse, Tunisia, with the latest.

That video, Nick, that new video from someone there at the resort, while the gunman was talking but the beach chairs remarkable.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Staggering to see the beach and hotel workers running at a man who gunned down the hotel guests just moments earlier. But this morning, more details emerging about the investigation.

As you said, ISIS claimed responsibility for this attack. It is the most significant one against terrorist attacks against British citizens since July of 2005. The question in the U.S. being asked is, was this independently ISIS-like or ISIS claimed? Now, the Tunisian authorities are getting closer towards answering that this morning.

[05:15:00] They are saying that they believe the gunman Saif al Rezgui had links to a Libyan terrorist group. Now, they are not specific to which one. They offer two potential alternatives. It's frankly the leading suspect radical groups here in Tunisia. It's either an al Qaeda affiliate known as Ansar al-Sharia, they think, or ISIS.

That's going to be key, because while they are absolutely insistent as was the video you referred to, that the gunman acted alone, that's what we heard from the beginning, they want to know about his accomplices over who may have gotten him to the beach, may have given him the firearm, may have given the stun grenades that you hear detonating during that video.

They arrested three of his roommates who are potentially of some of those who are marked, "the first arrests" in the particular investigation. Authorities are digging through his mobile phone, which on that video, you mentioned, too, he is seen throwing that into the sea by the cameraman as he flees the scene. They are going through his laptop and paper work from his family home in the sleepy town of Darfur (ph) where he worked in a coffee shop.

The investigation progressing, but still that vital question which many in America want to have answered because it dictates the safety of this massive coastal resort here, where so many come on holiday. Was ISIS responsible for this, or do they simply opportunistically as they have before claimed responsibility after the attack? Christine?

ROMANS: The online aspect -- the online radicalization such a concern for so many governments from a coffee shop worker to a mass murderer on a beautiful beach, just really, really dangerous questions. Thanks so much for that, Nick. BERMAN: The New Jersey man under arrest after allegedly plotting to

help ISIS. Authorities say that Alaa Saadeh planned to travel overseas to join the group. He bought a plane ticket for his brother to join the ISIS. This arrest comes weeks after another New Jersey man was arrested on similar charges.

ROMANS: The The Supreme Court has wrapped up its terms with a flurry of decisions, including one upholding use of a controversial execution drug. The justices ruled against three death row inmates who challenged the use of the drug Midazolam, claiming it caused excruciating pain. The court said the inmates failed to identify an available and preferable method of execution and also did not prove the use of the drug amounts to cruel and unusual punishment.

BERMAN: The justices also blocked key provisions of a Texas abortion law. The ruling prevents the state from moving forward with regulations that require all clinics to meet hospital style surgical standards. Enforcing the new rules will force many of the 19 remaining abortion clinics in Texas to close. The order will stay in effect until the high court will decide to hear the case likely in the fall.

ROMANS: Hotly debated vaccination bill has cleared a final legislative hurdle in the California state Senate. It requires mandatory vaccinations for nearly all school children ruling out conscientious objections by parents. They will only be allowed to opt out of vaccinating their kids for medical reasons. The measure is a response to a severe outbreak of measles at Disneyland. Governor Jerry Brown has not decided to sign the bill.

BERMAN: Huge wildfires in Washington state. Dozens of homes are in danger just outside of Seattle. Hundreds of residents have been evacuated. Rain on Monday helped crews make head way against the fire, but the scorching heat as returned. And the battle will get harder. The flames 10 percent contained right now. So, many people are worried.

(BEGIN VIDEO CLIP)

ANDREW SANBRI, WASHINGTON STATE PATROL: Devastating. It has been burning like this for hours.

UNIDENTIFIED MALE: How strong and how far and fast it goes, it's just unpredictable.

(END VIDEO CLIP)

ROMANS: Unpredictable. And firefighters in Washington state are not going to getting help from the weather today. The brutal heat wave goes on from there.

Let's get the latest from the meteorologist Pedram Javaheri.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Hopefully, you're having a wonderful morning, Christine and also John. Let's show you what's happening here across portions of the northwest,

because of course, dry conditions. Exacerbating the fire. In fact, pretty easy to pick out, the Cascade Mountains with the eastern and western half of the state. The humidity is down in the 30 percent range and 70 percent of the forecast on the western side with the marine influence.

But the sunny icons, the temperatures in the triple digits, zero percent rainfall probability in the next couple of days, not helpful of course, and that pattern is expected to continue into the Fourth of July weekend.

On the eastern side of the country, we have some scattered showers, generally light in nature around western P.A. and western New York this morning. Got about 116 reports of storm damage across the country, pretty wildly distributed, 58 related to hail, 58 were related to wind, zero on the way of tornadoes.

But again, the threat is there for some active weather from Atlanta out to Philly and Washington, 60 million people impacted by afternoon variety storms. New York, will keep you partly cloudy today, not too bad. We do make it up to 82 with thunderstorms come Wednesday afternoon in the forecast -- guys.

BERMAN: All right. Pedram, our thanks to you.

So, it is the toughest test yet for the U.S. women's soccer team. Semifinal tonight against Germany, maybe the best in the world. But the United States has justice and destiny on its side.

[05:20:22] Andy Scholes has a preview in the bleacher report next.

(COMMERCIAL BREAK)

ROMANS: One of the biggest names in golf, Phil Mickelson, linked to an alleged illegal offshore gambling investigation.

BERMAN: Andy Scholes has this and more in the bleacher report.

Good morning, Andy.

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Hey, good morning, guys.

Yes, Phil Mickelson has not been charged with anything or under federal investigation, but the bookie he allegedly placed bets with is in hot water. According to court documents, Gregory Silveira pleaded guilty to laundering $2.7 million that came from an unnamed gambling client. ESPN is reporting that Mickelson is the unnamed client.

Mickelson's attorney declined to comment when we reached out to him. Legal analysts do say though Mickelson is unlikely to be charged with anything because in most case, the federal government goes after the operators and not the bettors.

NBA free agency is set to begin at midnight. Dwyane Wade will be among the players available. Wade declining his player option that would have paid him $16.1 million this season. He is looking for a long-term deal from the Miami Heat.

This year's big fish, LaMarcus Aldridge, meanwhile, is set to meet with teams tonight in L.A. According to ESPN, the Lakers and Rockets are getting first crack to impressing Aldridge. The Knicks will get their shot on Thursday.

All right. Tonight is the biggest test yet for the U.S. women's national team as they take on Germany in the semifinals of the World Cup. Germany is the top ranked team in the world and has been the favorite to win it all since the start.

[05:25:01] But Team USA likes its chances, especially with the support they have been getting in Canada.

(BEGIN VIDEO CLIP)

JULIE JOHNSON, USWNT DEFENDER: It's momentum. It is motivation. It's inspiration. And it's just them having your back in the stands. You can feel the extra drive that the team wants to play for it.

HOPE SOLO, USWNT GOALKEEPER: I could talk all day that the stakes they bring. Ultimately, it is how we play. I think we've learned from last game versus China. If we play our game, it doesn't matter who we play. In the end, we will come out on top.

(END VIDEO CLIP)

SCHOLES: Tonight's game is 7:00 Eastern. You got one versus, two, I tell you what, guys, this feels more like a final than semifinal.

BERMAN: It does, the U.S. women's team will win. I can guarantee you that.

Andy, I had one question about the Knicks. How did the Knicks impress a player like LaMarcus Aldridge? How do we sell him? We've never win, we have no possibility of winning, but come here and play for us?

SCHOLES: Hey. I mean, Carmelo Anthony supposedly made his pitch to LaMarcus Aldridge already, called him up and said come play with me in New York. You say we got Phil Jackson. He has won more rings than he has fingers for. That's their pitch. I don't know, John, you can't base it on last year. That's for sure.

BERMAN: Nice try. Nice try, Andy Scholes. An "A" for effort. Appreciate it.

SCHOLES: All right.

ROMANS: Go U.S. tonight.

BERMAN: Yes, USA.

ROMANS: All right. New details this morning on a New York prison break. The captured killer telling investigators how they escaped and some surprising information about who helped them.

(COMMERCIAL BREAK)

ROMANS: The surprising details on how two killers who broke out of prison and who helped them. The captured inmate sharing their plan and what went wrong to them.

BERMAN: Wall Street posting its worst day of the year. Europe in crisis and the deadline to fix it.