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Early Start with John Berman and Zoraida Sambolin

Stunning Cosby Sex Admission; Iran Nuclear Negotiations: Deadline Day; Greece's Financial Crisis: Europe to the Rescue?; Murder Charge in San Francisco Shooting. Aired 4:30-5a ET

Aired July 07, 2015 - 04:30   ET

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

(COMMERCIAL BREAK)

[04:30:20] CHRISTINE ROMANS, CNN ANCHOR: Bill Cosby's stunning drug and sex confession. Court documents -- new court documents unsealed. Explosive details ahead.

JOHN BERMAN, CNN ANCHOR: Yes, wow on that.

Deadline day to reach a nuclear deal with Iran. Negotiations are going all night long. We have live team coverage from these difficult talks. We're also in Tehran with what Iranians are saying this morning.

ROMANS: European power players have an emergency meeting over the Greece's financial crisis. Banks closed until Thursday. Running out of money. Will Europe come to the rescue?

Welcome back to EARLY START. I'm Christine Romans.

BERMAN: Nice to see you this morning. I'm John Berman. Thirty minutes past the hour.

Breaking overnight, a stunning admission by Bill Cosby. He says he obtained a powerful sedative to give young women he wanted to have sex with. In court documents released overnight, the comedian also admitted that he gave Quaaludes to at least one woman. His lawyer stopped Cosby whether he ever gave the drug to young women without their knowledge. Women who have publicly accused Cosby of rape say the new revelation proves what they have been saying all along.

(BEGIN VIDEO CLIP)

PATTI MASTEN, SAYS BILL COSBY RAPED HER: Complete validation across the board from all of us. Complete validation. He will definitely be known as the most prolific serial rapist in the United States of America. No doubt, Dr. Huxtable will be.

(END VIDEO CLIP)

BERMAN: So, Cosby made these admission admissions under oath in a 2005 lawsuit filed by more than two dozen women who have accused him of rape. The documents came out Monday after "The Associated Press" went to court to compel their release.

"The A.P." reports, at least two women they willingly took drugs Cosby gave them. Cosby has never been criminally charged. He has vehemently denied any wrongdoing. CNN's efforts to contact his attorney for comments on the new disclosures have been unsuccessful.

ROMANS: And this 2005 deposition released in part because "The Associated Press" was suing for these materials.

BERMAN: Yes, exactly.

ROMANS: Happening now, Iran and six world powers faced today's deadline to reach a nuclear deadline. But it is a self imposed deadline that can be extended. With new snags cropping up every moment actually, extension is looking more likely. Iran now expects the United States to lift the five-year old arms embargo as part of the overall sanctions.

The U.S. and its European partners in the talks have opposed lifting the ban on effort or export of conventional arms. Both sides are now saying the burden is on the other side to make hard decisions.

For the latest on this and remaining obstacles, we turn to CNN's Nic Robertson. He's at the talks in Vienna.

Good morning, Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes. Good morning, Christine.

Well, already, one meeting held a very short one, 17 minutes. That's the P5-plus-1. That is John Kerry, along with the four ministers of France, Germany and Britain and China and Russia and E.U. foreign policy chief as well.

What we saw yesterday was that these meetings were followed on by lengthier meetings with the Iranian foreign minister, Mohammed Javad Zarif. So far, we are not aware that has happened today. What is being said behind closed doors, we don't know. What we can tell because we are following negotiations so closely for so long now is that the pace and scale of these meetings in terms of the foreign ministers is faster and bigger than we have seen in the past.

We know that the stumbling block for Iran, the red line for them, they want the arms embargo lifted, part of a U.N. Security Council resolution, not part of the nuclear agreement they say, but they won't sign a broader nuclear deal unless that happens, that a red line, of course, for the United States and other countries here. They don't agree to that.

Questions about the research and development for nuclear technology in Iran is part of this agreement. There seems to be issues yet to be resolved there. That access for inspectors across Iran seem to be issues to be resolved there.

But the real details of what gaps are narrowed, what maybe broadening at the moment, we don't know, unchartered territory. But everyone is still here, everyone still in the talks. That is an indication that there is a sense of progress yet to be made -- Christine.

ROMANS: All right. Nic Robertson in Iran's insistence that the arms embargo must end, that would be a hard sell in the United States, no question. That is a new snag. Thanks.

BERMAN: All right. This morning, folks all around the world are hanging on the fate of these negotiations, particularly in Iran. CNN's Frederik Pleitgen is in Tehran. Fred has spoken to everyone, from government officials to elderly villagers.

And, Fred, we're interested this morning -- what are these people telling you?

[04:35:03] FRED PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the government officials, very interestingly, John, I spoke to two of them, who were very high up here in the Iranian hierarchy. And both of them told me that already a lot has been achieved, between the U.S. and Iran. They say the fact that talks have been going on face to face for such a very long time is something they feel is unprecedented.

And they also told me that they believe that if a deal comes through, that it could lead up to additional cooperation and softening of the stance between the U.S. and Iran on many other issues as well. But, of course, first of all, the deal has to come through, and there, there's a lot of politics at play here in Iran, just like everywhere else.

If you ask the majority of the population in Tehran, most will tell you they want a deal and sanctions relief. They want, obviously, investment in the hydrocarbon industry. But also in their tech sector, which is gigantic and certainly suffering from the fact that it's cut off from the rest of the world.

But you also have a large group, a sizeable group of hardliners who want to make no absolutely concessions whatsoever. And this is something that Iranian politicians have been navigating as the talks are going on. And, certainly, this is something they are looking at as talks are getting what's probably into the final stages.

So, everybody here seems to be really well-informed. However, a lot of rumors flying around about what might be happening, about what sort of tentative agreements might have been reached. It's certainly been something where this entire country is on edge hoping a deal will come through.

BERMAN: And, of course, and several constituents there, from the people, to the government, to the mullahs themselves and are always in line.

Frederik Pleitgen for us in Tehran, thanks so much, Fred.

ROMANS: And to the markets actually, constituencies including the market, a nuclear deal would release Iran's bottled up oil exports to a world market already saturated. Look at that, oil prices plunged 8 percent yesterday to $53 a barrel.

But I can tell you that oil prices fell 8 percent. That's the biggest dive in five months. Iran has the fourth biggest oil reserves in the world. But sanctions have blocked that oil from global markets. That deal could change that. Adding to the oversupply and sending prices lower. But 8 percent move in one day in the oil market is a very big deal.

BERMAN: Happening now, there is an emergency summit in Brussels. Europeans leaders are trying to figure out the way to stop this Greece financial crisis and keep it from spilling over into the rest of Europe. Greece has rejected the most recent European bailout offer.

So, what now? The European Central Bank has turned down an emergency request by Greek banks for cash. And without euros, banks, they cannot remain open and they will remain shuttered through tomorrow. That's right. The banks will stay close at least through tomorrow, which means that Greeks will line up at ATMs where up until now, they can only get 60 euro a day.

ROMANS: Can you imagine how frustrating that must be?

BERMAN: I cannot. And you know what? That number could go down. It could be less than 60 euros.

ROMANS: The economy is crashing because you can't run a businesslike that. You can't buy things. I mean, the economy is literally crashing.

BERMAN: You can't run your life like that.

The Greeks are presenting a new plan to the Europeans for some bailout deal. What will the Europeans say?

We're going to go to CNN's Isa Soares live in Athens for us now.

And, Isa, we've been there. You've been there for well over a week. But this is really it at the end here. This is the last chance for Greece and Europe to figure this all out.

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Oh, absolutely, John. You hit the nail on the head. This is the last chance and I think Greece knows it. I think Alexis Tsipras and the new finance minister know this. This is their last chance to reach a deal, because Europe has been clear all along that, you know, if they want the third bailout, there are 29.1 billion euro that they are requesting, the third bailout in six years.

They need to come up with serious proposals. Those are words used by European leaders. So, this is it.

First, they have a finance ministers meeting. That is happening this morning. That will exchange ideas with the proposals in mind. Are they prepared to budge on the red lines? Cuts to pensions and raises to taxes and many others. Those are the red lines they said no all along. Are they prepared to budge? And then also, is Europe and particularly Germany prepared to give in

on the debt? Because this is something the IMF suggested is unsustainable, and from Italy as well. They are more amenable to the fact of perhaps cutting some of Greece's debt.

But now, it really is down to this. What Greece puts on the table and what Europe is prepared to accept, because as Christine was just mentioning, the economy is coming to its knees. Banks are not working. Banks are closed. People are in ATM.

And, business -- I went to a supermarket yesterday. It was practically empty, because people can't pay -- can't pay suppliers. So, money is not flowing. And so, it's really a deep freeze.

So, they know time is running out and this is really it, John.

[04:40:03] BERMAN: They got to supermarkets, and probably not many goods there. People flocking to those ATMs to get what money they can while they can.

Isa Soares for us in Athens, thanks so much.

ROMANS: So, markets awaiting to see if European leaders can make a deal to bail out Greece, again. European stocks down slightly right now. U.S. stock futures are higher. The stock market is closed in Athens and the banks will remain closed through Wednesday. Thursday, they are expected to open up.

There is no guarantee, the country tumbling toward bankruptcy. That would mean leaving it's Eurozone. It would not be able to use euros anymore as its national currency. It would have to print paper IOUs.

There's even been lot of discussion at the government level how do you start using IOUs for currency? There is some hope that European leaders will not just sit by and let that happen.

Yesterday, stocks fell in Europe and the U.S. following the no vote from Greek citizens over the weekend. The Dow down 47. So, Wall Street is paying attention to the crisis unfolding on the other side of the world. But I would say there is no panic yet.

All of the developments have been so frustrating, historic and incremental. Today I think is a really important day. If there is no progress today, I think you start to see some real problems --

BERMAN: If the grown ups cannot fix this at the table --

ROMANS: Are there grownups?

BERMAN: That was a good question.

A Mexican man illegally in the United States now charged with murder. He is in court this morning as the victim's family tells CNN what they are now focused on. That is next.

(COMMERCIAL BREAK) [04:45:05] BERMAN: The man charged with killing a San Francisco woman on a public pier will be arraigned for murder today. The undocumented immigrant admitted on camera he killed Kate Steinle, admitting it was an accident. He is a man with several past convictions who has crossed the border illegal many times.

This new alleged crime has touched off a firestorm of outrage in San Francisco's sanctuary city law. This prevents the city from handing over convicted felons to federal officials without a court order or warrant. The San Francisco sheriff is defending the law, saying it is vital to public safety.

(BEGIN VIDEO CLIP)

ROSS MIRKARIMI, SHERIFF, SAN FRANCISCO CITY AND COUNTY: When you look at how people were just so fearful to reporting and encountering local law enforcement, how they were really preyed upon, that changed dramatically when we enacted sanctuary city laws.

(END VIDEO CLIP)

ROMANS: Now, the family of the victim wants to stay out of the sanctuary city debate and keep the focus on their loved one.

(BEGIN VIDEO CLIP)

BRAD STEINLE, KATHRYN STEINLE'S BROTHER: All I feel now is love and I'm thankful that I had the time that I had with her because she was the most amazing sister. If I was able to talk to Kate right now, she would say, hey, Brad, it's OK. Just spread my memory and spread love and I know that would make her smile.

(END VIDEO CLIP)

BERMAN: So sad. Our thoughts are with that family. Let's get the latest from San Francisco. CNN's Sara Sidner is there.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN CORRESPONDENT: John and Christine, Juan Francisco Lopez-Sanchez is now being formally charged with murder by the San Francisco district attorney in the case of Kathryn Steinle. Kathryn Steinle was killed right behind me on Pier 14, when shots rang out from the stranger and she was hit from the upper body and died at the hospital.

Her family says they want no part in what has become a political debate in this case. The debate is over undocumented people being here and how they are treated by local, state and federal authorities. In this particular case, the outrage has grown because it turns out that Lopez-Sanchez was deported to Mexico five times before this happened.

He was expected to be deported a sixth time according to immigration and enforcement, but they did not get the chance to do that because he was then sent to San Francisco jail because of an old warrant after he left federal prison. That warrant was ten years old. It was on a drug charge that the San Francisco district attorney decided to drop. They did not charge him.

And so, the sheriff's office decided he would be able to be let free because the laws of the city, because it is a so-called "sanctuary city", allow for that.

Now, ICE, which overlooks immigration, had asked San Francisco to go ahead and tell them when he was being released, but the department did not do that. The sheriff's department instead releasing him saying that does not follow the policy of the city.

This has become a conundrum between the locals and the feds, and that is what's caused a lot of the consternation from lay people who say we cannot understand how this happened. Someone who's been convicted several times of crimes and deported several times still manage to be free on the street. And now in this tragic murder, we will have to see if justice is served.

Sara Sidner, CNN, San Francisco, California.

(END VIDEOTAPE)

ROMANS: Thanks, Sara.

Breaking overnight, authorities in Granite Falls, Washington, authorities say one person killed Monday and four injured in an ice cave collapse. You can see video there, the second day that part of the big four ice caves on the remote mountain side gave way. Officials have not been able to recover the body because of the danger of another possible collapse. One of the injured is said to be in critical condition.

All right. Severe storms threatening millions this morning. Flash floods strike in the Midwest overnight. We've got the dramatic new video.

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[04:52:47] BERMAN: The East Coast bracing for severe storms. It's part of the same system that has pounded the Midwest.

ROMANS: Check out the storm clouds over Kansas City, Missouri. Several reports of twisters touching down in the state on Monday evening. Fortunately, no serious injuries reported. Flash flooding in Missouri. Look at the tractor-trailer having a hard time navigating --

BERMAN: Look at that.

ROMANS: -- along that street. This pair of cars submerged.

Meantime, Monday night game's with the Kansas City Royals and Tampa Bay Rays called off. Look at that. Bad weather. Both teams are set to play a double header today. BERMAN: The north in Wisconsin, officials are surveying the damage

left behind by at least four tornadoes. The destruction span about 50 miles of northeast Wisconsin. Roofs of homes, barns and businesses ripped away. Thankfully, no deaths or injuries to report.

ROMANS: A lot of clean up. That storm system is bearing down on the northeast.

For the forecast, let's get to meteorologist Pedram Javaheri.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Good morning, Christine and John.

This is the severe weather outlook today. You look across areas out of Lubbock, all the way out towards the Grand Rapids, a pretty uniform line of active thunderstorms across the region of the country. It's 1,700-mile stretch through western Texas and working to the north, tornadoes over the past 24 hours.

You touched on the four coming out of Wisconsin. We know there were three in Missouri, one in Kansas, as well in addition we saw in Wisconsin. But Kansas City getting the brunt of the storm. That is why the game was called at Kauffman Stadium where the Royals were playing, but up to 2 to 3 inches coming down in the area around the city itself and 16 million people across the country, much across the southern region of the country, dealing with flooding in the past few hours.

We know over 80 rivers reporting some flooding across this area of the country as well. So, notice the front has passed. Back behind it, temperatures in the 50s. Few areas in the 40s in South Dakota, while ahead of it, in Missouri into Illinois, temperatures into the 70s and 80s.

Look at this trend, guys. Back in yesterday in Milwaukee, 85 degrees, 66 is the best they will do today. Same story for Chicago. In the upper 80s yesterday. Mid-60s in the forecast today.

ROMANS: All right. Thanks, Pedram.

Stocks in China tanking.

[04:55:02] That's the sound of the bubble popping, folks. Why that matters to your money, next.

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ROMANS: All right. Good morning. Happy Tuesday. I'm Christine Romans.

Let's get an early start on your money. A very busy morning, folks.

European stocks down a bit right now, waiting to see if E.U. leaders can reach a deal to rescue Greece. This is the end of the road, the last chance for Greece really important negotiations today.

Take a look at Shanghai. Stocks are down 1.3 percent. At one point, China shares plunged 5 percent. Chinese stocks have collapsed 25 percent in the past month. The communist government stepped in with extraordinary measures trying to lift the markets.

But it's not working, maybe blunting the fall. But not lifting markets. The question, will China's bear market turn into a freefall? That's the big fear.

China's stock market mostly closed to foreign investors. But China's stock market problems are getting a lot of notice around the world, because China is the second largest trading partner for both the U.S. and Europe.

Iran is nearing an historic deal with the west. Oil prices plunged 8 percent yesterday, now below $53 a barrel. That is the biggest plunge in five months, 8 percent move in one day is a big move.

Iran has the fourth biggest reserves in the world. That oil has been blocked from local markets because of sanctions. A deal could change that adding to the oversupply of oil and sending prices even lower. That's actually good news for your gas prices.

BERMAN: It's good news for consumers around the world.

ROMANS: It's not good news if your U.S. oil producer or you've been laying people off and suffering from lower energy prices.

BERMAN: Oh, well.

ROMANS: Oh, well. Right.

BERMAN: EARLY START continues right now.