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Confederate Flag Coming Down; Trump Won't Rule Out Independent Bid; 21 Million Americans Victimized in Hack Attack; Iran Nuclear Talks Extended Again; NCAA Commends SouthCarolina for Flag Removal. Aired 5-5:30a ET
Aired July 10, 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: 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?
Twenty-one million Americans victims of an historic government data breach. I'm talking historically awful. Social Security numbers stolen. Are you on this list?
Good morning, everyone. Welcome to EARLY START. I'm John Berman. It's Friday, July 10th, 5:00 a.m. in the East. Christine Romans is off this morning.
Happening in just a few hours, the Confederate battle flag which has flown at the South Carolina capitol for generations, it will be lowered which has been there 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 begin with the murder of nine people last month at an African-American church in Charleston. They were killed by the gunman who would pose with a Confederate flag in social media pictures.
The debate, it finally ended in the South Carolina house with 13 hours of passionate pleas like this one from Republican Jenny Horne, a descendant of Confederate President Jefferson Davis. She said take that flag down.
CNN's Don Lemon is in Columbia, South Carolina, 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: That is five hours from now. Please stay with CNN for that historic moment.
The Confederate flag became the surprising center of debate in Congress. House Speaker John Boehner pulled the 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: Earnest obviously there talking about Donald Trump and Trump's controversial comments about immigrants and his announcement speech where he calls them rapists and murderers.
New anxiety regarding Donald Trump and not just the immigration comments. On that front, Trump did tell Anderson Cooper 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 goes beyond immigration. Now, Trump is leaving the door open to a possible third party bid for president. Asked if he would support which ever Republican emerges from the primaries.
[05:05:01] He told "The Washington Post" he would, quote, "have to see who the nominee is."
And this morning, problems are mounting in a Trump hotel under construction in Washington, D.C.
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: All right. Joe Johns, thanks so much.
So, Republican rival Jeb Bush is amassing an unprecedented campaign war chest. In the first six months of the year, Bush and ally super PAC Right to Rise USA raised more than $114 million, more than $100 million of that went straight to the super PAC. Bush was able to personally raise unlimited funds for the PAC most of the year because he was not declared candidate until a few weeks ago, using the rules in his favor.
Later this morning, Senator Bernie Sanders running against Hillary Clinton for the Democratic nomination, he will be a guest on NEW DAY. That's at 8:30 Eastern Time.
New developments this morning, the data thief from the federal Office of Personnel Management, it has gone from huge to colossal.
Government investigators say the hackers stole the sensitive personal information, including Social Security numbers of more than 21 million people. That is nearly one in 10 American adults. The original estimate was about 4 million. Nearly all those affected had submitted security clearance applications.
Officials say China is the leading suspect in the 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.
New this morning, FBI arrests saved American lives. That is the word from Director James Comey who says more than ten people with suspected ties to ISIS were arrested in the last month or so. Comey believes the bus foiled plans to carry out attacks in connection with the July Fourth holiday. He provided no details but says the suspects were inspired by the unprecedented social media campaign carried out by ISIS.
Al Qaeda in the Arabian Peninsula has a new leader and he is calling fro attacks in the United States. And in a just release audio message, Qasim Al-Rimi calls on Muslims to conduct global jihad. He made a specific order to, quote, "direct and gather your arrows and swords against the United States."
Al-Rimi also praised al Qaeda operations in Syria and Taliban operations in Afghanistan, stressing that al Qaeda's affiliate in Yemen will not stand by while the United States, he says, kills Muslims.
Happening now: a new offer by Greece in its last best hope to stay in the euro and stave off economic calamity. Details of the proposals obtained by CNN include deep spending cuts and tax increases -- yes, that does sound like austerity -- in exchange for a three-year bailout of at least $50 billion.
Now, the Greek parliament and leaders have a few days to debate and decide the fate of Greece.
CNN's Isa Soares in Athens with the latest.
Good morning, Isa.
ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Good morning, John. Earlier, you called it economic whiplash. You were spot on.
I think the majority of people waking up will be shocked to see more austerity may be coming to them in the coming weeks if these proposals that have been put by Alexis Tsipras are accepted by Europe come Saturday, finance ministers and on Sunday, E.U. leaders.
[05:10:15] And what we know is that proposals, they're asking for three years bailout, roughly around 53.5 billion euro. That's $59 billion. And they want spending cuts of roughly 13 billion euro.
So, more spending cuts, tax increases and changes to pensions, right across the board. Some of the red lines you and I have been discussing, John, for the past week or so, that no changes to the pensions. That is gone. They are getting rid of the special rate to the poorer pensioners. They said that has to go.
Also, the special rate to some of the Greek islands. They have a 30 percent rate or so discount rate. That has to go. Only the poorer islands will keep the rate. All of the richer islands will do.
We are also seeing a raising retirement age, they've agreed to that, and privatizing state assets from airports to ports across the board. Also, military spending and reforming the tax system and dealing with tax evasion.
So, all in all, it seems the plan, John, looks very much like the plan that was on the table 10 days ago -- the very plan that people here said oxi, no to in the first place.
BERMAN: This has to be frustrating for the Greek people.
Isa Soares in Athens for us, the next few days, fascinating. Thanks, Isa.
Time for an early start on your money. CNN's Alison Kosik is here with that.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning.
And even with the volatility that the Greek caused in the U.S. markets, it looks like stocks are going to end the week on a good note. European shares are much higher right now. We are looking at U.S. stock futures much higher as well, because of that hope that Greece may reach a deal for a new bailout plan, the last chance to stay in the euro.
Asian shares are also mostly higher. The Shanghai composite on a wild ride this week, but stocks there up 4.5 percent today.
So, could this be the end of the tail spin for stocks in China? The government has stepped in to stop the plunge. It seems to be working finally. Stocks have fallen 30 percent in weeks wiping out trillions of dollars.
On the rise, oil prices. U.S. crude is up 2 percent right now. We are seeing commodities like oil, copper and iron, they have been sliding on worries about the help of the global economy now that it looks like China stock markets are going up. Everybody is breathing a sigh of relief.
BERMAN: It will be along that line. Alison, thanks so much.
New fallout this morning for Bill Cosby, criticized for his sex and drugs confession. Now the focus from the Los Angeles Police Department and even the White House responding.
(COMMERCIAL BREAK)
[05:15:54] BERMAN: New fallout from the admission by Bill Cosby under oath he obtained drugs with the intention of giving them to women he wanted to have sex with. The Los Angeles Police Department is launching an investigation looking into the sexual assault allegations against Cosby, including those which the statute of limitations has expired. The response to the new revelations has 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: Just the beginning. Jean Casarez, thanks so much.
New details in the investigation of the undocumented immigrant accused of killing a San Francisco woman. The gun used in the shooting had been stolen from the federal agent's car. But the "San Francisco Chronicle" reports police never assigned a detective to the auto burglary.
Days later, Juan Francisco Lopez-Sanchez allegedly shot and killed Kate Steinle on a busy San Francisco pier. A police spokesperson says the officers responding did perform a preliminary investigation, but uncovered no leads to warrant a follow-up.
The defense in the trial of accused movie theater gunman James Holmes plans to rest the case today. Holmes spoke in court telling the judge, quote, "I choose not to testify." Closing arguments are likely to begin on Tuesday. Prosecutors have asked for the death penalty.
The defense claims Holmes was legally insane when he killed 12 people and wounded 70 in the Aurora, Colorado movie theater in 2012.
The Florida Supreme Court blew up the congressional districts which could have a major implication for the 2016 elections. The court ordered eight congressional districts to be redrawn, ruling they were the boundaries were part of the unconstitutional gerrymandering by the Republican-led legislature. Lawmakers now have 100 days to complete a new political map.
Today, New York City's famous Canyon of Heroes, will be serious heroes on that ride. The World Cup champions getting the parade they so deserve. Andy Scholes with the details in the bleacher report next.
(COMMERCIAL BREAK)
[05:23:08] BERMAN: Big news in sports with the Confederate flag coming down, the NCAA says the state can now host championship events. The boycott over.
Andy Scholes with more on the bleacher report.
Good morning, Andy.
ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Hey, good morning, John.
Yes, the NCAA has previously banned South Carolina from bidding for the right to host NCAA championships across all its sports because of the Confederate flag was being flown. But now, the state can put its name in the hat for future events.
The NCAA released a statement on the matter yesterday saying, "We commend South Carolina lawmakers for taking this action to remove the Confederate flag from capitol grounds. For nearly 15 years, we specifically protested the flag by not allowing states like South Carolina to host pre-selected NCAA championships."
All right. As expected, LeBron James is returning to the Cleveland Cavaliers. LeBron's new deal is reportedly for two years $46 million. The second year is a player option, which means LeBron can once again opt out after next season. This allows him to make as much as money as possible. The salary cap continues to go up each year and it allows LeBron to maintain all of the power within the Cavs organization.
Serena Williams is heading back to the finals at Wimbledon. She beat Maria Sharapova in straight sets yesterday. She will now face Garbine Muguruza in the finals. If Serena wins Saturday, she'll hold all four grand slam titles at once and can still go for the calendar grand slam at the U.S. Open in September.
Now, later this morning, the men take the court for the semifinals. The match everyone is looking forward to is Andy Murray versus Roger Federer. Federer is looking for a record eighth gentlemen's title, while the home favorite Murray is looking to win his second. That match gets going around 10:30 Eastern.
[05:25:00] The World Cup championship celebration continuing today for the U.S. women's soccer team. They are being honored with a ticker tape parade of the Canyon of Heroes in New York City. First time since 1984 that a non-New York sports team is getting a parade in New York City.
They are expected to use a ton of confetti for this parade. It gets going at 11:00 Eastern. That means you will have it covered "@THIS HOUR".
BERMAN: That's exactly right. We will take it live at this hour.
It is nice to see non-New York teams getting a parade because no one likes the New York teams as far as I can tell.
Andy Scholes, great to see you this morning. Thanks so much.
SCHOLES: All right. Have a good one.
BERMAN: All right. The Confederate flag comes down just hours from now as South Carolina's capitol. An emotional debate is over, but the discussion continues. Stay with us.
(COMMERCIAL BREAK)
BERMAN: The Confederate flag will come down in South Carolina in just a few hours. Following a long emotional debate. Is the controversy about the symbol finally over?
Donald Trump giving Republican leaders a new reason to worry this morning. No, not just immigration comments, now flirting with a possible third party bid? Not ruling it out.
Twenty-one million Americans the victim of a cyber attack. Social Security numbers stolen. A huge federal data breach. Are you on this growing list of victims?
Welcome back to EARLY START, everyone. I'm John Berman. Thirty minutes past the hour. Christine Romans is off this morning.
Happening in just a few hours: the Confederate battle flag which flown at the South Carolina for generations, it will be lowered for the last time and taken to the state museum.
