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Early Start with John Berman and Zoraida Sambolin

S.C. Confederate Flag Coming Down; Trump Won't Rule Out Independent Bid; 21 Million Americans Victimized in Hack Attack; Iran Nuclear Talks Extended Again; Fact-Checking Jeb Bush: Do Americans Need to Work More? Aired 4:30-5a ET

Aired July 10, 2015 - 04:30   ET

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

[04:30:02] JOHN BERMAN, CNN ANCHOR: The Confederate flag comes down in South Carolina in just a few hours after a long emotional debate. But is the controversy over this divisive symbol really over?

Donald Trump giving GOP leaders a new reason to be concerned not just about immigration now. Might he run as a third party candidate?

Twenty-one million Americans the victim of a hack attack. Social Security numbers stolen. A colossal federal data breach. Are you on this list of people? Stay with us.

Welcome back to EARLY START, everyone. I'm John Berman. Thirty minutes past the hour.

Happening in just a few hours, the Confederate battle flag which has flown at the South Carolina capitol for generations, it will be lowered for the last time and taken to a state museum. This is the culmination of a stunning turn of events that began with the murder of nine people last month at the African-American church in Charleston. They were killed by a gunman who posed with a Confederate flag in social media pictures.

The debate finally ended in the South Carolina House following 13 hours of passionate pleas.

CNN's Don Lemon is in Columbia with the very latest.

(BEGIN VIDEOTAPE)

DON LEMON, CNN HOST: John, 22 days after the massacre at the AME church in Charleston, South Carolina, Governor Nikki Haley signed the bill that this flag on the state house grounds in Columbia must come down. It's going to come down within a few hours here. And there is going to be a ceremony.

When she signed that bill yesterday, what she said was that generations of Americans, generations around the world, will look at South Carolina differently.

GOV. NIKKI HALEY (R), SOUTH CAROLINA: This is the story about the history of South Carolina and how the action of nine individuals laid out this long chain of events that forever showed the state of South Carolina what love and forgiveness looks like. And I will tell you now this is about our children, because when they

go back and look at the history books, while we're still grieving and the grieving is going to last for a long time, when the emotions will start to fade, the history of the actions that took place by everyone in South Carolina to get us to the moment is one we can all be proud of.

LEMON: The eyes of the world really were on South Carolina, as the governor as signed that bill, and said that this flag is going to come down.

Even the former President Bill Clinton weighed in.

BILL CLINTON, FORMER PRESIDENT: I almost cried when I saw that picture of the South Carolina legislature yesterday with Republicans and Democrats and African-Americans and white people embracing each other and making that vote and seeing the decisive speech made by a woman who is a direct descendant of Jefferson Davis. Don't tell me that we can't get across the lines of divide. We just have to keep working at it.

LEMON: So, it all happens today at 10:00 a.m. Eastern Time, in just a few hours. We'll be here covering it live for you.

John, back to you.

(END VIDEOTAPE)

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

And again, just like he said, CNN will be covering this historic moment at 10:00 a.m. Eastern Time. So, please join us then.

The Confederate flag became the center of a surprising debate in Congress. House Speaker John Boehner pulled a funding bill at the last minute because Southern Republicans were pushing an amendment that would allow the continued display of the flag at National Park Service cemeteries.

White House Press Secretary Josh Earnest slammed the Republican lawmakers as out of step with the vast majority of Americans.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Right now, the interior appropriations bill in the House is jammed up because a sizable number of House Republicans are eager to protect the status of the Confederate flag on National Park Service grounds. It's the same congressional Republicans who've declined to criticize the race- baiting rhetoric of a leading Republican presidential candidate.

(END VIDEO CLIP)

BERMAN: That was a clear reference to Donald Trump right there and Trump's controversial comments about immigrants where he called them drug dealers and rapists. New anxiety among Republicans this morning regarding Donald Trump and

not just that its the immigration comments will alienate Latino voters. On that front, though, Trump did tell Anderson Cooper that he would draw Hispanics to the party.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: What I'm going to do for the Latinos is I'm going to be able to create jobs. I'm going to take jobs from China, I'm going to take jobs -- excuse me -- from Mexico, from Japan where they are sending millions of automobiles all the time and we get nothing out of it. I'm going to take jobs back and bring them back into the country.

And the Latinos are going to be able to work and make good money. They're going to vote for me. And I'll tell you what? I will take them away from Hillary Clinton.

(END VIDEO CLIP)

BERMAN: But the new concern for Republicans this morning, not about the immigration comments, but this -- Trump is leaving the door open now to a third party bid for president. Asked if he would support whichever Republican emerges from the primaries, Trump told "The Washington Post" he would, quote, "have to see who the nominee is."

[04:35:06] This morning, problems are mounting in a new Trump hotel under construction in Washington. Protesters stood out front demanding a halt to the project or at least a removal of t Trump's name from the building and a new chef has now researched plans for a restaurant in the hotel.

CNN's Joe Johns has the latest.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: John, Donald Trump has given a barrage of interviews. And now, there are mixed messages about whether the chairman of the Republican National Committee asked him to tone down his rhetoric. The RNC is calling this a respectful conversation between Trump and RNC Chairman Reince Priebus. They have to walk a line because the Republican Party, especially since the presidential cycle of 2012, has been trying to make in-roads to Latino voters and the overarching concern is that Trump's comments are hurting as opposed to helping the GOP.

Donald Trump is saying chairman Priebus did not test ties per se, and that, in fact, the call was more congratulatory than anything. But Trump is admitting the subject of his comments on immigration did come up in that brief conversation. It's important because the RNC did a study that's been described publicly as an autopsy of the last presidential election and one of the big takeaways was that Republican candidates needed to change the way they talk about the immigration issue.

Meanwhile, the fallout continues at the new hotel Trump is putting up in Washington, D.C. There were protests against Trump at the construction site on Thursday. The real fallout at the hotel has more to do with Trump's business partners on the project who are backing out.

The latest one to do so is Geoffrey Zakarian, who is the culinary director of the Plaza Hotel in New York which Trump used to own but sold to a business group from India. Zakarian was teed up to put up a new restaurant in a new Trump hotel in D.C., but put out a statement saying Trump's statements don't align with his personal core values and that he wasn't able to move forward.

Another chef and restaurateur Jose Andres has also backed out of putting a restaurant into the hotel for basically the same reasons.

Trump, for his part, is showing no signs of backing down. He has a Saturday visit scheduled to the state of Arizona which has been ground zero in the debate over illegal immigration -- John.

(END VIDEOTAPE)

BERMAN: Thanks to Joe Johns for that.

So, one of Trump's rivals, Jeb Bush, amassing an unprecedented campaign war chest. In the first six months of the year, Bush and his ally super PAC Right to Rise USA raised $114 million. More than $100 million of that went straight to the super PAC. Bush was able to personally raise essentially unlimited funds for that PAC most of the year because he was not a declared candidate for president until just a few weeks ago.

Later this morning, a big presidential interview on "NEW DAY", Bernie Sanders, who's running for the Democratic side against Hillary Clinton, he will be a guest on "NEW DAY". That's at 8:30 a.m. Eastern Time.

New developments this morning: the data thief from the federal Office of Personnel Management, it has gone from huge to just colossal. Government investigators say the hackers stole the sensitive personal information, including Social Security numbers of more than 21 million people. The original estimate was about 4 million. Nearly all those affected had submitted security clearance applications.

Intelligence officials say China is the leading suspect in this theft. Republican lawmakers are calling on President Obama to fire the head of the Office of Personnel Management, Katherine Archuleta. The White House says the president still has confidence that Archuleta is the right person for the job.

Happening now, a new offer for Greece and its last best hope to stay in the euro and fight off economic calamity. Details of the proposal obtained by CNN included deep spending cuts and tax increases -- wow, that sounds like austerity -- in exchange for a three-year bailout of at least $50 billion. Now, the Greek parliament and European leaders have just a few days to debate and decide Greece's fate.

CNN's Isa Soares live in Athens, covering this economic and political whiplash for us.

Good morning, Isa.

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Good morning, John.

It sounds like us t austerity because it is more austerity. And that's the reality we're looking. We've been looking at the plans that were proposed today, late last night, and the one if you remember the one we discussed last week before the referendum was called on Sunday. And you know what, John? Practically the same.

So, people said no to austerity now. They're saying here, more austerity. And two major lines, red lines that Greek prime minister Alexis Tsipras said he would not pass, he would not jump on, and those are the pensions, especially rate for pensions, which is basically getting rid of the special offer for pensioners who are slightly poorer. He said we're not going to get rid of that. That is going to go by the year 2022.

[04:40:02] The other concession he's made is special right on islands. Certain islands here in Greece, they've had a special rate of tax basically reduction. He did not want that to go ahead prior to the referendum. Now he conceded saying some of the richer islands will get rid of the tax on that, the special rate, but the poorest ones won't.

But all in all, he's accepted there will be more reforms of VAT, increase of VAT, up to 23 percent to restaurants. He is making concessions on the retirement age. He is privatizing state assets. He is cutting military spending. He is raising corporate tax. So, as you can see, more and more austerity. What we know is it is going to parliament and now, it has to be approved.

So, one more step before Europe considers it -- John.

BERMAN: And every step has its own little machinations.

Isa Soares for us in Athens -- thanks so much.

Time now for an early start on your money. Alison Kosik is here with that.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning.

And with all the Greek drama and all the volatility we saw this week in the market, it looks like today, we're going to end on a good note. European shares are much higher right now, so are U.S. stock futures. And a good part of that is because there are hopes that Greece, as you heard, may finally reach a deal for a new bailout plan.

Asian shares are also mostly higher. The Shanghai Composite, it's has been on a wild ride this week. But stocks are up 4.5 percent today.

So, the question is, is this the end of the tailspin for stocks in China? The government has stepped in to stop the plunge and it finally seems to be working, at least for now. Stocks have fallen 30 percent in weeks, wiping out trillions of dollars.

Also rising, oil prices -- U.S. crude up 2 percent right now. We are also seeing commodities like copper and iron -- they slid on worries about the health of the global economy. We saw oil prices fall on worries about China's slowing economy and stock market, of course, crashing.

But all those fears put the rest at least for today.

BERMAN: At least for today, it's Friday. So, that's nice.

Thanks, Alison. Appreciate it.

Bill Cosby facing new possible fallout after admitting he obtained drugs to give to women for sex. It's reaching the Los Angeles Police Department. And now, even the White House. Details next.

(COMMERCIAL BREAK)

[04:45:53] BERMAN: New fallout this morning from the admission by Bill Cosby under oath that he obtained drugs with the intention of giving them to women he wanted to have sex with. The Los Angeles Police Department has launched a criminal investigation looking into sexual assault allegations against Cosby, including those for which the statue of limitations has expired. The response to the new revelations has now even reached the White House.

CNN's Jean Casarez has more.

(BEGIN VIDEOTAPE)

JEAN CASAREZ, CNN CORRESPONDENT: John, as everyone waits to see if the full deposition of Bill Cosby from 2005 will be publicly released, the sexual assault survivors organization PAVE is petitioning the White House to take back a Presidential Medal of Freedom that Cosby received in 2002. The online petition has garnered more than 2,600 signatures.

White House spokesperson Josh Earnest says he doesn't know what will happen, but as a rule, the administration has been very focused on countering sexual assault.

Meanwhile, the Los Angeles Police Department confirms with CNN it does have an open investigation regarding Cosby, but it won't say anything more than that.

Alleged victim Chloe Goins met with the LAPD earlier this year. And her attorney Spencer Kulvin this year tells me that several weeks ago, the lead detective on Cosby's investigation within the LAPD called him, wanting more information.

And also, insurance company AIG, who insures Cosby under three policies, has filed federal suit saying they will not defend the star in the civil defamation suits brought by accuser Janice Dickinson in California or three women in Massachusetts. Their reason? Cosby's insurance contracts don't cover sexual assault, molestation, or harassment, sexual, physical or mental abuse.

CNN has reached out to Cosby's attorney, Marty Singer, for a response. If AIG's suit is successful, Cosby could have to pay out of his own pocket any monetary damages that these women would be awarded by a court or a jury. And that could be substantial -- John.

(END VIDEOTAPE)

BERMAN: All right. Jean Casarez, thanks so much.

Another deadline has passed. Are there any deadlines left to reach a nuclear deal with Iran? Secretary of State John Kerry in meetings right now. We're going to go live to these negotiations, next.

(COMMERCIAL BREAK)

[04:51:53] BERMAN: All right. This morning, the deadline to reach a final nuclear deal with Iran has been extended yet again. This time, there's no real firm end date at all.

Secretary of State John Kerry is warning the U.S. would walk away from the negotiating table if Iran does not make the tough decisions needed for a final agreement.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: And the simple fact is, that despite all of the progress that we have made and it's real, some of the tough issues remain unresolved.

(END VIDEO CLIP)

BERMAN: CNN's Nic Robertson is live in Vienna with the latest.

You know, Nic, a lot of people thought there would be a big announcement today -- deal reached. Where do things stand now?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: I don't think we will get that announcement today. All bets are off. Certainly, that's been the rollercoaster nature of the talks so far.

What is happening specifically this minute, Secretary Kerry meeting with his Iranian counterpart, the foreign minister, along with the E.U. foreign policy chief. They have been in the meeting for about an hour. It's the first meeting of the day.

Secretary Kerry late yesterday saying very clearly he is willing to walk away, not saying when that is. E.U. foreign policy chief, about 15 hours ago now, said the amount of time before they walk away would be a matter of hours.

Now, did she actually mean 24 or 48 hours, what we call a couple of days? Or did she mean hours? It is just not clear.

But what is clear is that both sides are very deeply entrenched in their position. We heard from Secretary Kerry saying the Iranians need to make the tough choices. I went to a briefing by a senior Iranian official last night who said the mirror of that, that is U.S. that needs to make those key decisions right now, the trust deficit is growing, that the U.S. he said is moving the goal posts on this agreement.

So, you get the sense as we stand outside the meetings here. The public positions are that they are still apart. We heard this for months, that the key tough decisions have to be made. Yet, here we are and the senior Iranian official said we are in the 13th hour of talks, way past the sort of 11th or 10th hour, if you will. Those entrenched positions still publicly appear to exist, John.

BERMAN: And the 11th hour was a long, long time ago at this point, Nic. And the acrimony seems to be on the uptick at least overnight.

Nic Robertson for us in Vienna, thanks so much.

All right. Jeb Bush says Americans should work more. We'll give you the facts behind the statement which is pretty controversial. That's coming up next.

(COMMERCIAL BREAK)

[04:57:53] BERMAN: Time now for an early start on your money. Alison Kosik joins us now.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning to you.

Lots of green arrows around the world. European shares are much higher. So, are U.S. stock futures. So, a lot of optimism that Greece will reach a deal this weekend to keep it out of bankruptcy and in the Eurozone.

Asian shares are also mostly higher. Take a look at the Shanghai composite. That's up 4 1/2 percent today. It's been quite a wild ride for a few weeks for Chinese stocks.

But it looks like government efforts to stop the market crash are at least beginning to work.

New this morning, it's the biggest cosmetics merger in recent history. Procter & Gamble g is selling its perfume, hair care and makeup business. That means brands like Clairol, CoverGirl and Max Factor, all those brands we recognize. Coty, the maker of --

BERMAN: Speak for yourself.

KOSIK: Oh, come on, there are women in your life, John.

BERMAN: I know, I know. Go ahead.

KOSIK: The maker of Calvin Klein and Chloe, which is Coty, is going to be scooping them up in a $12.5 billion deal. And the sale is part of P&G's plan to shed some of its slow-growing brands, and focus on staples like Tide and Pampers. OK. Jeb Bush causing quite a stir this week when he said Americans

need to work longer hours. But here's the truth -- Americans already work pretty hard. The average workweek: 34.4 hours. That's actually longer than workers in other countries.

Americans also get fewer vacation days and crazy enough, they don't use them all. I don't understand that.

Bush later said he wants those stuck in part-time jobs to be able to get full-time jobs if they want them. So, he was clarifying there.

But here's the issue -- there are 6.5 million part-time workers, compared with 4.5 million part-timers 10 years. It's why many say the unemployment rate that's sitting at 5.3 percent isn't so accurate because the under employment rate, which includes those part-timers, is at 10.5 percent, John.

BERMAN: Yes. It's not perfect. That's for sure.

KOSIK: Right.

BERMAN: Alison Kosik, thanks so much.

EARLY START continues right now.

(MUSIC)

BERMAN: In just a few hours, the Confederate flag comes down in South Carolina. The debate, though, about this controversial symbol is far from over.

Donald Trump given Republican leaders a new reason to worry, not just the comment on immigration. But now, is he flirting with an independent bid?