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Early Start with John Berman and Zoraida Sambolin
South Carolina Legislature Votes to Remove Confederate Flag; Chaos on Wall Street; Donald Trump: On the Attack; DeAndre Jordan Backs Out of Dallas and Returns to L.A. Aired 5-5:30a ET
Aired July 09, 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] CHRISTINE ROMANS, CNN ANCHOR: Breaking news this morning: a new day for South Carolina just hours ago voting to remove the Confederate flag from statehouse grounds.
JOHN BERMAN, CNN ANCHOR: Chaos on Wall Street. The New York Stock Exchange shuts down. Major swings, we're talking like back-breaking swings in China and a bailout bid from Greece which Europe may not buy. That's leading panic on the streets in Athens. We'll bring you the very latest, coming up.
ROMANS: Donald Trump not holding back. He is on the record to CNN about Hillary Clinton and Jeb Bush. That's ahead.
Good morning. Welcome to EARLY START. I'm Christine Romans.
BERMAN: Nice to see you this morning. I'm John Berman. It's Thursday, July 9th. It is 5:00 a.m. in the East.
And breaking overnight, a historic vote. Jus a few hours ago, the South Carolina House passed a bill that orders the removal of the Confederate battle flag from the capitol grounds of the capitol in Columbia. The final vote came at the wee hours in the morning. The tally was 94-20.
Governor Nikki Haley will sign this measure. The debate lasted 13 hours and it featured pleas by lawmakers to make the Confederate emblem a thing of their past.
(BEGIN VIDEO CLIP)
JENNY HORNE (R), SOUTH CAROLINA STATE HOUSE: If any of you vote to amend, you are ensuring that this flag will fly beyond Friday. And for the widow of Senator Pinckney and his two young daughters, that would be adding insult to injury, and I will not be a part of it.
(END VIDEO CLIP)
ROMANS: The renewed discussion on the Confederate flag, it was sparked by the murder of nine people at the African-American church last month.
Governor Haley has applauded the vote with a statement saying, "It is a new day in South Carolina. A day we can all be proud of, a day that truly brings us all together as we continue to heal as one people and one state."
The flag will come down as soon as Friday
State police are investigating numerous death threats against South Carolina lawmakers that were received during the emotional debate.
ROMANS: All right. Turmoil around the globe this morning. Computer freezing up the New York Stock Exchange, United Airlines, "The Wall Street Journal".
The Chinese stock market plunges despite the government's struggle to break its fall. And Greece is seeking another bailout at end of the road here. And Federal Reserve worries that the Greek crisis will hurt the U.S. economy. There is so much going on.
We have live team coverage this morning from Shanghai to Athens. Let's look quickly though at the markets, the latest at the markets at this moment. Asian stocks are up, but it has been a wild day.
The Shanghai composite first dropped 3 percent at the open and turned around and jumped almost 6 percent. Why did it jump? Well, the Chinese government is propping up the stock market. Half of the stocks are closed. And brokerages are being forced by the government to buy up shares.
European stocks are higher right now, on hopes of an agreement in Greece's debt crisis. U.S. stock futures are recovering from what was chaos yesterday, 11:30 a.m., the New York Stock Exchange suspended trading, stayed shut for nearly four hours.
The exchange says it was an internal technical issue. It was not a cyber breach. U.S. Homeland Security officials also saying this was not a cyber breach. It was a glitch at stock exchange, but it was closed for four hours.
And over at the United Airlines, its fleet grounded worldwide on its own computer glitch. United says it's fixed the bad router, but disrupted travel all day long, and that travel disruption will likely feed into today's morning flights, guys.
Yet another technical problem at "The Wall Street Journal". A 504 error message greeted visitors to "The Journal's" home page.
All of these seem to be unrelated. I guess the risk of doing business in the digital age. But, certainly, it really got a lot of attention.
Let's go to China now where there have been epic swings in the market today after huge losses, a crash of Chinese stocks and now wild swings of a government desperate to try to control a bubble that's bursting.
I want to bring CNN's Ivan Watson in Shanghai -- Ivan.
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Christine, worried Chinese investors got their first good news in weeks. The Shanghai stock exchange had a crazy day, but ended up gaining almost 6 percent. That's remarkable considering that on Wednesday, it was down some 6 percent and since June 12th, it has plunged losing more than $3 trillion in market wealth, losing roughly 30 percent of its value. And that, of course, has freaked a lot of people out here.
The question is, is the gains we saw today, does that reflect the value of the market? Because the Chinese government has announced that it's buying up tens of billions of dollars worth of Chinese stocks. It has suspended IPOs. It's issued an ultimate.
If you are an executive in a company, if you own more than 5 percent of the shares in any company, you're not allowed to sell any of them for the next six months. On top of that, companies are so nervous, that roughly half of the companies listed in the stock markets here, have all suspended trading for several days now.
[05:05:06] So, the improvements that people have seen just in today's trading, they don't necessarily reflect the true value of the stock market. And that gets at the crash that we have seen in the last three weeks in the first place.
All economists pretty much agree that this was a bubble and this was why it has plummeted so far. It was the prospect of making easy, fast money that attracted millions of ordinary Chinese to invest their savings, to borrow money to invest their savings. Those are the people that stand to lose the most if this stock market crash continues -- Christine.
ROMANS: Whether tulip bulbs or tech stocks or Chinese stocks, in 2015, bubbles have those very similar qualities. People got in last get really nailed.
All right. Thanks so much for that, Ivan.
New this morning, fears from the Federal Reserve that the financial crisis in Greece could spill over.
BERMAN: Right. In Greece this morning, fresh rush of fear, a new concern that Europe will not buy the latest bailout proposal. So, folks in Greece are rushing to buy whatever durable goods they can, anything that might hold value if the bottom falls out of the economy, which it could, within days.
CNN's Isa Soares joins us now live from Athens with the latest.
Good morning, Isa.
ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Good morning, John. Good morning, Christine.
The euphoria that if you remember on Sunday, well, that is fading rather fast, because Greeks are now growing tired of having to queue for 60 euros a day that's been imposed on them. Every morning, people queue from very, very early for the pensioners to very late at night.
But they are tired and they want this crisis to end. Alexis Tsipras now has the extra pressure to put proposals through that Europe will find and will see them as credible and serious. We know these sort of refresh of a three-year bailout, the third bailout request in six years.
The concerns are will the proposals put through that he will hand over at the end of today, will they go far enough? Europe is being very clear yesterday, saying if you want to stay in the euro, then you need to get your financial house in order. And that is taxing, reforming your tax system and reforming your pension system.
People are backing Alexis Tsipras, but they are getting incredibly nervous, increasingly nervous in fact, because while the prime minister has the backing for people, push back on those austerity measures, pulling that referendum to 60 percent, he does not have the mandate to get Greece out of the euro. Seventy-five percent of Greeks want to stay in the euro.
So, many people doing what they can the last couple of days, buying whatever food and medicine they can, just in case there is any sort of Greccident, any sort of accident. But it seems the mood we're getting from here from Greece, the signs we're getting, is Alexis Tsipras will do what he can to stay in the euro.
Back to you.
BERMAN: All right. Isa Soares for us in Athens, a lot to watch there in the couple days.
ROMANS: Yes. And that story is not over by a longshot.
All right. Donald Trump, brash and defiant as ever, he hits back at Hillary Clinton with the interview with Anderson Cooper after Clinton told CNN she was very disappointed in Trump's description of Mexican immigrants as drug dealers and rapists. Trump accused her of dodging media questions about her e-mails.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: She has a lot to hide. She doesn't want to talk to the press. Look, she was the worst secretary of state in the history of the United States.
(END VIDEO CLIP)
ROMANS: Republican leaders are growing worried about Trump's harsh words about immigrants that will hurt the party's 2016 prospects.
A Republican source tells CNN that Republican Committee Chairman Reince Priebus called Trump to complain. Priebus saying he has, quote, "spent four years trying to make in-roads with the Hispanic community".
This as controversy grows over a Trump hotel project. According to "The Washington Post", this project has undocumented immigrants working at the constructions site.
CNN's Joe Johns is in Washington with more on that.
CNN's Joe Johns is in Washington with more on that.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: John and Christine, a rare moment of uncertainty for Donald Trump. The billionaire presidential candidate who is known for speaking his mind and so decisively about a whole range of issues. It's about Trump's construction projects, including one going up in Washington, D.C., where he has hired a top project management company to oversee the job. And questions have been raised about whether any of the workers on the site are undocumented immigrants.
It's become a real issue, especially in light of Trump's highly controversial comments at his campaign kickoff about Mexican immigrants who crossed the border into the U.S.
In a revealing interview with CNN's Anderson Cooper, Trump gave an honest answer about employees working on his construction projects in general, admitting that he cannot say for certain there are no illegal immigrants on any of the jobs.
ANDERSON COOPER, CNN ANCHOR: Can you guarantee that you don't have illegal or undocumented workers working for you in hotel projects or various projects?
[05:10:00] TRUMP: I can't guarantee it. How can I -- how can anyone? We have 34 million in the country. I used to hear 11. Now, I hear 34 million. I can't guarantee anything.
But I can say this, we work he very hard to make sure that everybody is legal as opposed to illegal.
JOHNS: And there was more controversy surrounding the Washington, D.C. hotel that is supposed to open at the end of this year or some time in 2016.
The celebrated chef and entrepreneur Jose Andres became the latest Trump partner to drop out of a venture with him due to his controversial comments about immigrants. Andres had planned to put a new restaurant inside the hotel -- John and Christine.
(END VIDEOTAPE)
BERMAN: All right. Joe Johns, thanks very much.
Donald Trump says he is standing by a retweet that many say was a personal jab at his rival Jeb Bush. The retweet said Jeb Bush has to like Mexican illegals because of his wife.
(BEGIN VIDEO CLIP)
TRUMP: If my wife were from Mexico, I think I would have a soft spot for people from Mexico. I can understand it.
COOPER: You think that influences his position on illegal immigration?
TRUMP: I think it could. I mean, maybe it should.
JEB BUSH (R), PRESIDENTIAL CANDIDATE: My wife is from Mexico. I love her dearly. You can love the Mexican culture, you can love your Mexican-American wife and also believe that we need to control the border.
(END VIDEO CLIP)
BERMAN: You know, Bush was commenting. He's saying, you know, he was never wavered on his policy regarding on his wife. He has loved her and respected her for 41 years, he says, and he doesn't see that policy changing anytime soon.
ROMANS: We'll have more on this, I'm sure.
BERMAN: Yes.
All right. Big news out of Baltimore. The police commissioner fired. This in the wake of surging crime there after the riots involving the death of Freddie Gray.
Plus, panic onboard a Southwest flight overnight. Wait until you see these pictures.
(COMMERCIAL BREAK)
BERMAN: Breaking news overnight out of Chicago. A Southwest Airlines flight bound for Boston forced to abort takeoff at Midway Airport because of mechanical problems.
One of the 143 passengers recorded this video that shows sparks coming from the wing.
[05:15:04] Look at that. That is not supposed to happen.
A fire department spokesperson said the engine caught fire. Obviously. Southwest says no one was hurt. The plane is now being inspected.
ROMANS: This afternoon, a memorial service for Kate Steinle. People and family will say their final good-byes to the woman fatally shot on the pier in San Francisco. New details emerging now about the apparently random killing and how the suspect who had been deported five times, how he managed to get the hands on the murder weapon, a gun stolen from the federal officer.
We get more from CNN's Kyung Lah in San Francisco.
(BEGIN VIDEOTAPE)
KYUNG LAH, CNN CORRESPONDENT: Well, John and Christine, we are learning much more about the weapon and how this began. This started with the break in of a car. That car belonged to a law enforcement officer with the Bureau of Land Management. Inside that vehicle was his government issued handgun.
That .40 caliber gun ended up here at the pier. It's not clear though exactly who broke into the vehicle. What we do know is that this suspect, Juan Francisco Lopez-Sanchez, found it, wrapped in a t-shirt, he says to an interview with a local television, and then, that gun went off.
We also heard for the first time since the murders happened from the mayor of San Francisco. He says that Lopez-Sanchez should not have been released. He put the blame squarely on the sheriff.
And we are anticipating that the sheriff will be holding a news conference later today to respond to that allegation -- John, Christine.
(END VIDEOTAPE)
BERMAN: All right. Kyung, thanks so much.
Baltimore's police chief is out. Mayor Stephanie Rawlings-Blake announced the removal of Commissioner Anthony Batts, saying, "The people of Baltimore deserve better." Batts received some criticism for his response to the riots that erupted after the death of Freddie Gray.
Earlier, a police union report criticized his leadership, saying officers received confusing orders during the riots. The mayor says she is responding not to the union report, but to a dramatic spike in homicides.
(BEGIN VIDEO CLIP)
MAYOR STEPHANIE RAWLINGS-BLAKE (D), BALTIMORE: Too many continue to die on our streets, including three just last night and one lost earlier today. Families are tired of feeling this pain and so am I. Recent events have placed an intense focus on our police leadership, distracting many from what needs to be our main focus: the fight against crime.
So, we need a change. This was not an easy decision, but it is one that is in the best interest of the people of Baltimore.
(END VIDEO CLIP)
BERMAN: The Deputy Police Commissioner Kevin Davis was named interim commissioner.
ROMANS: Severe weather in store today for parts of the Northeast and Mid-Atlantic States with flash flooding a major problem in one rural Pennsylvania county. Emergency teams had to rescue several people from vehicles when water rose quickly after heavy rain spilling over creeks.
BERMAN: Cleaning up in east canton, Ohio. Look at that tree. Residents say the huge winds sent so much out of the ground.
(BEGIN VIDEO CLIP)
ANDREA GILLS, EAST CANTON, OHIO RESIDENT: It was so fast, we didn't have time to be scared. You know, we didn't even realized what happened until we came back up.
(END VIDEO CLIP)
ROMANS: Let's bring in meteorologist Pedram Javaheri for the latest.
PEDRAM JAVAHERI, AMS METEOROLOGIST: Hey, good morning, guys. Unfortunately, the severe weather threat really displaced some of the most populated parts of the country, of course, right around the Northeast. That's what we have, a slight risk. In a field of one to five, it is a two when it comes to the severity of these storms today. And you go from Scranton down towards Philly, Baltimore around Washington, some of the bigger cities in line for severe thunderstorms possibly into the early afternoon and early evening hours, damaging winds and lightning are the features for the most prominent concern.
But temperatures this morning, pretty mild nationwide, when you look at it -- 64 in Chicago, one of the cooler spots, work its way towards D.C. and New York. Warmer in New York City than Panama City. Love it when that happens this time of year. It doesn't happen too often. But to the upper 70s and here we go with the stationary frontal boundary that's been in place with storms firing up along these lines.
So, into the early morning hours, Detroit and Cleveland by lunchtime and by the afternoon and evening, Philly and New York start getting on some of these storms with the heaviest rainfall I think in the next couple of days around eastern Oklahoma and northern Arkansas and southern Missouri, Branson, the last thing they want to see is additional four to five inches. But, unfortunately, it's going to be a wet start for their weekend -- guys.
ROMANS: All right. A wet start to the weekend. Thanks, Pedram.
BERMAN: All right. An NBA free agent stunner. Where is DeAndre Jordan going to play next year? I got to tell you, the answer -- it keeps changing and changing.
Andy Scholes with the details on the bleacher report, next.
(COMMERCIAL BREAK)
[05:23:26] BERMAN: Clippers super center DeAndre Jordan is staying or he's leaving or he's staying. One of these things is true, probably.
Andy Scholes has more in the bleacher report.
Good morning, Andy.
ANDY SCHOLES, CNN SPORTS: Hey, good morning, guys.
There are a lot of unhappy people in Dallas, especially Mavs owner Mark Cuban, because, you know, there is a unwritten rule in the NBA. Once a player verbally agrees to a contract, he is off-limits. But in this case, with DeAndre Jordan, he started having second thoughts about signing with the Mavs over the weekend and he reportedly let those be known to Blake Griffin and Doc Rivers.
So, the Clippers, they put on the full court press yesterday in Jordan's home in Houston. River, Griffen, Chris Paul, Paul Pierce, and owner Steve Ballmer were all at Jordan's house to convince him to come back to the Clippers. Griffin tweeted out this picture of Jordan's door being blocked so he couldn't leave until he re-sign.
And shortly after that, Paul Pierce tweeted out this pic of Jordan officially signing his deal with L.A., with Rivers and his mom by his side.
Tell you what? Mark Cuban is probably not happy. I can guarantee you not happy to see that.
All right. Another big sports story that took over Twitter last night was a tweet sent out by Adam Schefter concerning Giant's Jason Pierre- Paul. Schefter tweeted out a picture of Pierre-Paul's medical chart that shows that he had to have his right index finger amputated on Wednesday after a fireworks accident over the weekend. Many questioned the ethics of tweeting out someone's medical records but ESPN is standing by Schefter, saying HIPAA laws do not apply to news organizations.
[05:25:01] The Giants, they used their franchise tag off Pierre-Paul this offseason, but they could decide to withdraw the one-year $15 million deal, making Pierre-Paul a free agent.
The Washington Redskins are saying they will appeal a ruling by federal judge that canceled the team's trademark registration. The judge rules that the Redskins name and logo may be disparaging to Native Americans and this ruling does not prevent them from using the Redskins name, but it removes the protections of a federally registered trademark.
All right. Finally, bad news for the next weekend's open championship. Rory McIlroy has officially withdrawn from the tournament after injuring his ankle playing an soccer with some of his friends. This is the first time in 61 years the defending champion won't be playing in the tournament.
Guys, if you are looking for something to watch this morning on TV sports-wise, you got Serena versus Maria Sharapova in the Wimbledon semifinals. That gets going in around 10:00 a.m. Eastern.
BERMAN: And neither will be playing soccer before their match. My hunch.
SCHOLES: I guarantee that.
ROMANS: The moral of the story is don't do any fireworks and don't play soccer if you're a golf player.
BERMAN: Not if you make millions --
(CROSSTALK)
ROMANS: Just do it in what you're supposed to do.
BERMAN: Andy, thanks.
ROMANS: Breaking news this morning: the Confederate flag in South Carolina will come down. The dramatic late night vote, ahead.
(COMMERCIAL BREAK)
BERMAN: Breaking news this morning: Take it down. A new day for South Carolina. The final vote to remove the Confederate flag from the statehouse grounds.
ROMANS: Chaos on Wall Street. The New York Stock Exchange shuts down amid wild stock markets swings in China, and a new bailout bid from Greece. Live team coverage breaking it all down ahead.
