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Early Start with John Berman and Zoraida Sambolin

South Carolina Confederate Flag Coming Down; Was Trump Asked to Tone Down His Rhetoric?; Greece Seeks 53 Billion Euro Bailout; LAPD Investigating Bill Cosby; Iran Nuclear Talks Extended Again. Aired 5:30-6a ET

Aired July 10, 2015 - 05:30   ET

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

[05:30:02] JOHN BERMAN, CNN ANCHOR: -- I'm John Berman. It's 30 minutes past the hour. 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 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 an African-American church in Charleston. They were killed by a gunman who had posed with the confederate flag in social media pictures.

The debate finally ended in the South Carolina House following 13 hours of passionate pleas including this one from Republican Representative Jenny Horne, a descendant herself of confederate president, Jefferson Davis. CNN's Don Lemon is in Columbia, South Carolina with the latest.

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

(BEGIN VIDEO CLIP)

GOVERNOR NIKKI HALEY (R), SOUTH CAROLINA: This is a 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 that now this is about our children because when they go back and look in the history books, while we're still grieving and the grieving will last a long time, when the emotions start to fade, the history of the actions that took place by everyone in South Carolina to get us to this moment is one that we can all be proud of.

(END VIDEO CLIP)

LEMON: The eyes of the world really were on South Carolina as the governor signed that bill and said that this flag will come down. Even the former President Bill Clinton weighed in.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: I almost cried when I saw that picture of the South Carolina legislature yesterday with Republicans and the Democrats and the 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 we can't get together across the lines of divide. We just have to keep working at it.

(END VIDEO CLIP)

LEMON: So it all happens today at 10:00 a.m. Eastern Time. We'll be here covering it live for you. John, back to you.

BERMAN: All right, Don Lemon. As Don mentioned four and a half hours from now, the flag does come down. Join us on CNN to see that historic moment.

The confederate flag became the surprising center of the 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 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 of a sizable number of House Republicans are eager to protect the status of the confederate flag on the national park service grounds. These are the same congressional Republicans who have declined to criticize the race-baiting rhetoric of a leading Republican presidential candidate.

(END VIDEO CLIP)

BERMAN: Earnest was referring to Donald Trump right there and his controversial comments about immigrants during his announcement speech.

New anxiety among Republicans this morning about Donald Trump and not just those immigration comments in the idea they would 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 in 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. The Latinos are going to be able to work and make good money. They will vote for me. I'll tell you what? I will take them away from Hillary Clinton.

(END VIDEO CLIP)

BERMAN: The new concern for Republicans not so much immigration, but this, Trump is leaving the door open 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."

This morning, new problems are mounting at the Trump hotel under construction in Washington. CNN's Joe Johns has the latest.

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 Donald Trump and RNC Chairman Reince Priebus. They have to walk a thin line because the Republican Party especially since the presidential cycle of 2012 has been trying to make inroads to Latino voters.

[05:35:10] And the overarching concern is that Trump's comments are hurting as opposed to helping the GOP. Donald Trump is saying that Chairman Priebus did not chastise him per se and 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 is important because the RNC did a study that has been described publicly as an autopsy of the last presidential election.

And one of the big take away 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 Jeffery 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 a new restaurant in the 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.

BERMAN: All right, Joe Johns, thank you so much.

New developments this morning in the data theft from the federal Office of Personnel Management, which has gone from huge to simply colossal. Government investigators say 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 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.

Happening now, a new offer by Greece and its last best hope to stay in the euro and fight off economic calamity. Details of this proposal obtained by CNN include deep spending cuts and tax increases in exchange for a three-year bailout of about 53 billion euros.

Now the Greek parliament and European leaders have just a few days to debate and decide the fate of Greece. CNN's Isa Soares is in Athens with the latest. Isa, you know, this sounds like an austerity plan, this sounds like the type of thing that just a week ago Greek leaders say they were against.

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: It does look like an austerity plan. That because it is an austerity plan, John. It is exactly pretty much the same plan that the Greek Prime Minister Tsipras put to his own people, telling his own people to vote no about ten days ago that referendum on Sunday.

That people, 61 percent overwhelmingly say no, but you were quite right. There are more austerity measures here. So I think a lot of Greeks see it this morning will be spitting feathers if I can be honest with you.

There are more spending cuts, 13 billion euros of spending cuts. Tax increases right across the board from electricity to really restaurants and also food and hotels raising tax there. The changes to pensions were a major red line. They said we will not give in on that. That is now being accepted.

You are starting to see why people are angry about this. But one important point here, we know that the Greeks have formerly requested some sort of debt relief, debt restructuring. It doesn't say in the proposal that they've asked for this, but we know in the last few days they had asked for this.

If Europe can give Greece sort of debt relief, debt restructuring, perhaps Alexis Tsipras can spin this slightly to his people. But first, he has to bring it to parliament where you have voting on this.

But also, the opposition, and then after that, John, he has European parliament and national parliaments have to vote. Will Germany oppose this deal? We are not out of the woods yet.

BERMAN: And after all this, Greek still has to get itself going in the right direction again economically. That could be next to impossible. Isa Soares for us in Athens, thanks so much.

Time now for an EARLY START on your money, Alison Kosik is here with that. Good morning, Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Interesting. You think about it. All of the volatility that this Greece back and forth has caused in the markets, today, it looks like we are going to end the week with some green arrows.

European shares are much higher right now so are U.S. stock futures up quite a bit on the hopes that Greece could finally reach a deal for a new bailout plan.

[05:40:04] Asian shares are also mostly higher. The Shanghai Composite has been on a wild ride this week, but stocks are up 4.5 percent today, which begs the question, is this the end of the tailspin for stocks in China?

The government has stepped in to stop the plunge. It seems to be working at least for now. Stocks have fallen 30 percent in recent weeks. That's wiped out trillions of dollars. It's an astounding percentage.

BERMAN: It's amazing, $3 trillion gone. All right, Alison, thanks so much.

Bill Cosby facing new fallout after admitting he obtained drugs to give to women for sex. That fallout reaching the Los Angeles Police Department and even the White House. Details next.

(COMMERCIAL BREAK)

BERMAN: New fallout this morning from Bill Cosby's admission that he obtained drugs intending to give 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. CNN's Jean Casarez has more.

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 general rule, the administration has been very focused on countering sexual assault.

[05:45:06] 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 Cuben (ph), tells me that several weeks ago, the lead detective on Cosby's investigation within the LAPD called him wanting more information.

Also insurance company, AIG, who insures Cosby under three different policies have filed federal suits saying they will not defend the star in a civil defamation suit brought by accused Janet Dickinson in California or three other 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 jury, and that could be substantial -- John.

BERMAN: All right, Jean Casarez for us, just the beginning there.

Let's take a look at what is coming up on "NEW DAY." Michaela Pereira joins me now.

MICHAELA PEREIRA, CNN ANCHOR, "NEW DAY": Hello, on this Friday, my dear. How are you? All alone there, are you?

Listen, we know that today means that the sun is rising one more time on the confederate flag in South Carolina. It is set to come down later this morning. It's the culmination of a rapid change in public opinion following the Charleston massacre. We have full coverage for you today. We examine a growing movement in other states to remove confederate imagery. Watch that movement today.

And also Bernie Sanders surging in the polls trying to dethrone the perennial front runner Hillary Clinton, can it be done? You will hear him make the case himself. Bernie Sanders joins us live on "New Day." John, that's coming up.

BERMAN: All right, looking forward to that. Thanks, Michaela.

PEREIRA: No problem.

BERMAN: Yet another deadline has passed. No there is really deadline left reaching a nuclear deal with Iran. Secretary of State John Kerry is in meetings right now. Are they close to progress or is the whole thing close to falling apart? We will go live to negotiations next.

(COMMERCIAL BREAK)

[05:51:03]

BERMAN: All right. This morning, the deadline to reach a final nuclear deal with Iran has been extended again. This time, there is no firm end date in sight. Secretary of State John Kerry is warning that the U.S. will walk away from the negotiating table if Iran does not make the tough negotiations 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: All right, a meeting just broke up between the secretary of state and Iran's foreign minister. CNN's Nic Robertson is live in Vienna with the very latest. Nic, any news?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the foreign minister came out on the balcony shortly after the meeting. Questions were shouted up to him. Will there be a deal today? He said he did not think that there would be a deal today.

How did the meeting go? He described it as being constructive. He was asked whether or not this meeting was heated. We heard about heated meetings with John Kerry earlier in the week. He said I'll leave that up to you to decide.

He was asked, and this is a key question, because we have been talked a lot about not a deadline. Secretary Kerry saying he is willing to walk away. The E.U. foreign policy chief said we should know in a matter of hours.

The Iranian foreign minister was asked will we still be here Monday. He said he didn't know, but he hoped not so that's not a hard yes or a no. But the indication is that these talks are continuing.

The fact that he comes out on the balcony is an indication the Iranians continue to push their position and it has been quite strong. It's been in opposition to what Secretary Kerry said.

Secretary Kerry had said that the Iranians need to make tough choices. A senior Iranian official last night said no. The shoe on the other foot is the Americans have those tough choices to make. They should not put pressure on us.

It is counterproductive that the trust between us and gap in that trust is growing. That's what he was saying last night -- John.

BERMAN: Through the weekend at least. Nic Robertson, I hope you packed enough socks. Thanks so much, Nic. Appreciate it.

Jeb Bush says Americans should work more. What is behind this controversial statement? That's next.

(COMMERCIAL BREAK)

[05:56:43]

BERMAN: Time now for an EARLY START on your money. Alison Kosik is here with that. Good morning.

KOSIK: Good morning. This is the way to start out a Friday. Stocks are up around the world. European shares are much higher so are U.S. stock futures. There is a lot of optimism that Greece will reach a deal this weekend to keep it out of bankruptcy and in the Eurozone.

We are also watching Asian shares. They are mostly higher. They closed higher. Shanghai Composite up 4.5 percent today. It is been a wild ride for the past few weeks for China stocks, but it looks like the government efforts to stop the market crash are working at least for today.

New this morning, it's the biggest cosmetics merger in recent history. Proctor & Gamble is selling its perfume, hair care and makeup businesses. That means brands Clairol, Cover Girl and Max Factor.

Coty, the maker of Calvin Klein and Chloe will scoop them up in a $12.5 billion deal. 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. Here is the truth. Americans already work pretty hard. The average workweek, 34.4 hours that's actually longer than people working in other countries.

Americans also get fewer vacation days and then don't even use them at all which is a head scratcher to me. Bush later said he wants those stuck in part-time jobs to be able to get full-time jobs if they want them. He is clarifying that headline that came out.

But the thing is that is not the trend that we are going in. There are 6.5 million part-time workers compared with 4.4 million part- timers that we saw ten years ago. That is why so many of us are seeing the under employment rate at 10.5 percent. There goes my voice.

BERMAN: It shows the jobs picture, unemployment doesn't paint the whole picture when it comes to jobs always. Alison Kosik, thanks so much.

Happening just a few hours from now, the confederate flag will come down in South Carolina. "NEW DAY" has the preview starting right now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: The bill has been signed.

UNIDENTIFIED MALE: This flag on the statehouse grounds must come down.

HALEY: These nine pens are going to each of the nine families of the Emanuel Nine.

UNIDENTIFIED MALE: All those oppose no.

BERMAN: Surprising center of debate in Congress.

EARNEST: Eager to protect the status of the confederate flag on national park service grounds.

UNIDENTIFIED FEMALE: Mr. Speaker, I ask for a recorded vote. UNIDENTIFIED MALE: U.S. law enforcement thwarted several terror threats tied to the 4th of July weekend.

UNIDENTIFIED MALE: There was even one that was within hours or minutes.

UNIDENTIFIED MALE: It doesn't take a sophisticated plot for hundreds of Americans to be killed.

TRUMP: Bush is weak on immigration. Marco Rubio is somebody who is extremely weak on immigration. I could be more offensive to Rick Perry, but the fact is he was the governor of Texas.

(END VIDEOTAPE)

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to your NEW DAY. It is Friday, July 10th, 6:00 in the east. Alisyn is off. History will be made in South Carolina today. In just hours, the confederate battle flag coming down from the state capitol grounds where it is flown in defiance in the 1960s. Where will the flag go? To a museum.

PEREIRA: The battle over the confederate flag certainly doesn't end in South Carolina. Petitions are spreading across the nation and the battle is now ratcheting up in the halls of Congress. We begin our coverage with CNN's Alina Machado. She is live in Columbia, South Carolina. Good morning, Alina.