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Early Start with John Berman and Zoraida Sambolin

Selling the Iran Nuclear Deal; Markets Await Greek Vote; New Video Captures "El Chapo" Escape. Aired 4:30-5a ET

Aired July 15, 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] CHRISTINE ROMANS, CNN ANCHOR: Celebration and anger, following a nuclear deal with Iran. We now know the details and it's causing controversy here at home and around the world.

Today, President Obama trying to sell that deal to Congress. Can he do it? Live team coverage begins right now.

Welcome back to EARLY START. I'm Christine Romans. Thirty minutes past the hour this Wednesday morning.

Happening now, reaction from around the world this morning over that nuclear deal with Iran, praise and criticism now that we know what is in the 109-page agreement. Presidents Obama and Rouhani of Iran emphasizing the deal's advantage for their people as Iranians celebrate in the streets.

But concerns also mounting specifically over the last few years of the 15-year deal when Iran would be allowed to conduct more advanced nuclear research and eventually produce all of the nuclear fuel it wants.

For the latest, let's bring in senior international correspondent Nic Robertson in Vienna.

And, Nic, it's the end of that 15-year window that has some concern this morning.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Absolutely. Right at the end of that window, Iran is allowed to get on with its nuclear research and development, and that means it could make a bomb much more quickly. It could have much more efficient and effective centrifuges which would just speed up the enrichment process. So, any calculation you have about how long it takes Iran to make a nuclear weapon, ultimately, that time line shrinks if they got better equipment to do it, which is what the research and development will bring.

What -- the way this agreement has been sold to the people of the United States and to the people of Iran, you can see that there are gaps in interpretations here already. The notion that sanctions can be snapped back on Iran is something that has been very important for President Obama and Secretary of State John Kerry. Yet, in Iran, the president there Rouhani has told his people that sanctions will be gone forever.

The reality is the sanctions can be snapped back on, but if Iran complies for the next eight years, then those sanctions are gone for good. So any chance of Iran changing its course and there being able to be sort of an economic penalty, you know, 15 years down the line, that won't be the case. They can have their research and development. They have the money to fund it. And then it's really comes down to a matter of trust and that's what people have a concern about today, Christine.

ROMANS: Well, a matter of trust, but if you have robust inspections, you can trust your partner a little bit better. What about the inspections part of this agreement?

ROBERTSON: Yes. I mean, that's really going to be the crux of how robust this all is. And it does seem that the IAEA, the international nuclear watchdog, the people who are in charge of going into Iran and measuring Iran's compliance and going beyond that and saying, as they do in 120 countries where they work around the world already, saying, OK, it's not just good enough you say you have this material and this equipment in this building, we have a concern about this building and this equipment and this military site. The terms of the agreement say the IAEA inspectors can do that and go into that military site and look for that equipment.

What has been built into the agreement is a very short time line in terms of sort of international diplomacy that if Iran doesn't comply, they have 14 days to let the inspectors in. If they don't, then it goes to a commission and that commission has seven days to agree a resolution to that problem, and if that doesn't happen, three days later, sanctions snap back on.

When you're talking about nuclear scientists and nuclear sites, there is always, in the eyes of the IAEA, a way to test what nuclear components have been around and talk about that sort of thing of isotopes, et cetera. So, they believe that what they have the tools they have, a very strong to catch Iran out if it's trying to lie about what it's doing.

ROMANS: All right. Nic Robertson in Vienna for us -- again, great work, Nic. I know for weeks you have been covering this story.

Now, there's a deal and still more work to do parsing it and taking a look at the international reaction. Thank you, Nic, for your hard work.

You know, this morning, the White House into its campaign to sell this Iran deal. The president determined to win over the American public, skeptical Democrats, and fiercely opposed Republicans.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: And that's why the deal that we have out there, in my view, from what I know about it, thus far, is unacceptable. SEN. MITCH MCCONNELL (R-KY), MAJORITY LEADER: It would aim at the

best deal acceptable to Iran, rather than one that might actually end Iran's nuclear program.

(END VIDEO CLIP)

ROMANS: Opponents in Congress have two months to review and debate the deal and try to stop it with a veto.

Senior White House correspondent Jim Acosta has more for us.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Christine, there's a full-court press here at the White House in selling this nuclear deal with Iran.

[04:35:00] Later today, President Obama will defend the agreement at a news conference here at the White House. That will be just after Vice President Joe Biden spends the morning briefing House Democrats on this deal.

The president's global pitch has already begun. He's made calls to Israeli Prime Minister Benjamin Netanyahu, leaders in Europe, Saudi Arabia's king and leaders in Congress. Lawmakers up on Capitol Hill have 60 days to review and block this deal, but the White House is taking comfort in in the fact much of that time is spent in the lawmakers' August recess and pushing a likely showdown to September and a showdown the president says he is ready for.

OBAMA: I'm confident that this deal will meet the national security interests of the United States and our allies. So, I will veto any legislation that prevents the successful implementation of this deal.

ACOSTA: But the big question comes down to this, do the deals opponents in Congress have the two-thirds vote needed to override a presidential veto? One White House official told me they don't believe the opposition will be able to clear that hurdle. That means the president as he likes to say, he will live long enough to see whether or not this deal fails. It's all but certain he'll have that chance -- Christine.

(END VIDEOTAPE)

ROMANS: All right. Thanks for that, Jim Acosta, at the White House.

Now, some of the most opposition to this deal is coming from Israeli. Just hours after the agreement was signed, Israeli Prime Minister Benjamin Netanyahu, he called it, quote, a historic mistake. He said on Israeli TV that the lifting of sanctions would provide Iran with a dangerous jackpot, hundreds of billions of dollars.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: This cash bonanza will fuel Iran's terrorism worldwide, its aggression in the region, and its efforts to destroy Israeli, which are ongoing.

(END VIDEO CLIP)

ROMANS: The Obama administration quick to respond. Secretary of State Kerry calling the Israeli prime minister's comments way over the top.

Joining us now from Jerusalem, CNN's Erin McLaughlin with the latest on the reaction in Israeli and around the Middle East. And I've got to tell you, Erin, I was even before there was a press conference announcing with certainty that this deal was done and already the Israelis were very upset.

ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT (via telephone): That's right, Christine. Israeli officials have been speaking out against this agreement for months now. They continue to say they want to stop the lifting of sanctions and we see them, you know, very vocally stating their case and calling on lawmakers to quash this deal. This includes the opposition. The opposition leader yesterday saying he plans to go to the United States to explain the risks of the agreement.

And we're also hearing from voices from other key allies in the region, a source inside Saudi Arabia calling the agreement a, quote, "monumental historic miscalculation." A source telling CNN the deal will be met with hostility because of the way it was done, calling it a charade. A source saying that there will be a strong Saudi response over the medium term.

So, you know, some pretty strong rhetoric from key U.S. allies. Yesterday, President Obama making a series of phone calls to leaders in the region, including Saudi Arabia and trying to explain -- trying to sell this agreement.

But, you know, judging from the language we have been hearing, it's going to be very tough for him -- Christine.

ROMANS: It is going to be difficult, indeed.

All right. Thank you so much for that, Erin.

Oil prices rebounding overnight. Investors realized, you know, it's going to take months for Iran to ramp up oil exports. U.S. crude prices tumbled right after the news of the deal broke 2 percent. Iran has fourth biggest oil reserves in the world and blocked from world markets by sanctions. A deal could change that, adding as much as 1 million barrels of crude per day with global market. But, right now, prices are up right now 4 percent to about $53 a barrel.

Turning to world markets, Chinese stocks are lower this morning, despite a report of strong economic growth. In Europe, stocks opened lower while U.S. futures are flat. Those marketing await ago vote in Greece and could give them another bailout. The Greek parliament will vote on new reform measures, the new bailout proposals include more austerity than those rejected by Greek voters on July 5th.

Greek prime minister defending the $95 billion deal on state TV Tuesday, telling his nation it is necessary to avoid exiting the euro.

President Obama pushing for major criminal justice reforms. He made an impassionate plea for new legislation in a speech to the NAACP Tuesday, citing the plight of too many low level criminals paying too high a price for their offenses. And the president says current laws have a disproportionate impact on blacks.

(BEGIN VIDEO CLIP)

OBAMA: A growing body of research shows that people of color are more likely to be stopped, frisked, questioned, charged, detained. African-Americans are more likely to be arrested.

[04:40:00] They are more likely to be sentenced to more time for the same crime.

(END VIDEO CLIP)

ROMANS: The remarks coming on the heels of the president commuting the sentences of 46 nonviolent drug offenders. On Thursday, he'll go where no sitting president has gone before, visiting a federal prison in Oklahoma to talk more about reforming criminal justice policy.

All right. We have new video for you -- new video capturing the very moment a notorious Mexican drug lord escaped from prison. Look at it there. New details on how El Chapo broke free, next.

ROMANS: Just released surveillance video shows the very moment when Mexican drug kingpin Joaquin "El Chapo" Guzman escaped from his prison cell. Here it is. You can see El Chapo nervously pacing back and forth in his cell before entering, moving over to sort of the bathroom stall, a little shower area, bathroom area of his cell. The drug lord then leans forwards. And seconds later, he just disappears.

Also new this morning, law enforcement telling CNN, relatives and close associates of El Chapo may have been plotting to break him out of prison.

We get more on the escape and the search for the kingpin from CNN correspondent Nick Valencia.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN NATIONAL REPORTER: Christine, the new images show by all accounts, the magnificent feat of architecture and engineering, complete with a ventilation system, lighting, and a modified motorcycle presumably used to dig through that tunnel.

[04:45:05] La secretaria de goverbacion, which is equivalent to the interior minister here in Mexico, said that it is likely that El Chapo had help from inside that prison.

We know that more than 30 prison guards have been taken into custody, questioned as part of this investigation. The head of the Altiplano prison has also been fired. Now, we were able to get into that prison. We were to go through

official channels to get access but we were denied so we essentially just knocked on the front door. They took our ID, escorted us to another room where we handed over our belongings. And then we passed through a metal detector.

Now, as we gone through that first perimeter, we were met by a federal police van. That van took us to a second perimeter, where we were met by the director, the current director of the Altiplano prison, and he was furious we were able to get to that part of the prison. He asked what organization we were with. We told him that we were with CNN, he told us not on the list and turned us away and escorting us back with heavily federal police and military.

Now, if we were as a news organization were able to get that far into that type of prison, you could only imagine the type of access and ease at which El Chapo operated, a man with incredible influence and money. If authorities here in Mexico know anything about his whereabouts, they are not making it public -- Christine.

(END VIDEOTAPE)

ROMANS: That's remarkable.

All right. Nick, thanks for that.

Donald Trump surging to the top of the crowded Republican presidential field in this new poll. It's a "USA Today"/Suffolk University poll. It shows 17 percent say Trump is their first choice for the GOP nomination. Jeb Bush second at 14 percent and Scott Walker third at 8 percent.

The news for Tramp not as good for a head-to-head matchup with Hillary Clinton. He trails the presumed Democratic nominee by 17 points. In an interview Tuesday with our Dana Bash, Trump tried to set America straight on why he is running for president.

(BEGIN VIDEO CLIP)

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: A new poll just came out saying that 40 percent of Republican voters think that you're just doing this for publicity.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: That's what I don't understand.

BASH: How do you change their minds?

TRUMP: Well, I think it's a great thing for me.

BASH: Why?

TRUMP: Because a lot of those people want to vote for me, but they think I'm doing it for publicity. The fact is, that was one I was very surprised.

Why would I be doing this? I take abuse from everybody and I'm doing this for fun? This isn't fun.

I want to make America great again. Those 40 percent are people that would vote for me, that's the thing I like about it. Remember, before I announce, everyone is saying he's never going to announce. I announce. Then he said, he's never going to send and sign the form that I did two weeks -- I sign it.

Now, over the next couple of days, I'm putting in my financials which will show an unbelievable company.

BASH: Can you give me a teaser on that?

TRUMP: No, I can't, but you'll see it tomorrow or the next day. But it's an unbelievable company, far greater and I built that. I built that. And that's what this country needs.

(END VIDEO CLIP)

ROMANS: Trump is expected to make the financial disclosures to the Federal Election Commission today.

Meantime, the brother of a San Francisco woman killed by an undocumented immigrant, he is criticizing Donald Trump for using his sister's death to punctuate Trump's political message painting immigrants who went to U.S. illegally as criminals. CNN's Anderson Cooper asked the brother Brad Steinle what he thinks of Trump using his sister's story.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN ANCHOR: This is a hard question and you don't have to answer it -- do you feel like Donald Trump is using your sister?

BRAD STEINLE, BROTHER OF WOMAN KILLED BY UNDOCUMENTED IMMIGRANT: In a way, yes. Sensationalizing it is not the route we would like to go.

COOPER: So, your message to Donald Trump would be what?

STEINLE: You know, if you're going to -- if you're going to use somebody's name and you're going to sensationalize the death of a beautiful young lady, maybe you should call and talk to the family first and see what their views are.

(END VIDEO CLIP)

ROMANS: Asked about Trump's plans to keep undocumented immigrants out by building a fence along the U.S.-Mexico border, Steinle called it not rational and not common sense.

Several storms threatening millions this morning as areas already hit hard pick up pieces from this deadly disaster. What you need to know for today, next.

(COMMERCIAL BREAK) ROMANS: Millions are bracing for severe storms today across the South following an outbreak of a deadly flash flooding on Tuesday. two people were killed, at least six remain missing. Official say flash floods there destroyed about 150 houses, damaged several hundred more. Kentucky's governor declaring a state of emergency.

Cleanup under way in Northern Minnesota's Brainerd Lake's area after a huge thunderstorms downed trees and broke up docks at some of the region's resort.

This was the scene in Michigan after a twister touched down early Tuesday. Trees uprooted and crops damaged. You can see some damage to the homes. One woman takes us through her harrowing experience.

(BEGIN VIDEO CLIP)

ROBIN VAUGHN, HOMEOWNER: The house started moaning really loudly. Then my ears popped. And I've never seen a tornado or it was very dark out, so I basically just said, we need to get downstairs and started running down the stairs.

(END VIDEO CLIP)

ROMANS: Most of that severe weather now moving into the Southeast.

Let's get more this morning from CNN's meteorologist Pedram Javaheri.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Hey, Christine.

Here comes another cold front stretching across the eastern side of the country. Temperatures dropping across the New York City, down to 77 degrees this afternoon. How about heavy rain showers between, 9:00, 10:00 and 11:00 a.m. and high pressure builds out of this.

Early morning around Philly, by midmorning around New Jersey, late morning around New York City and, say, Hartford, Connecticut. So, heavy rainfall in the works. We have plenty of storms across the eastern side of the country over the past 24 hours. Upwards of 300 wind reports and four reports of tornado as well, and parts of the Southeast really getting the brunt of these storms.

But the main threat for about 6 million people stretches from Omaha towards Kansas City, eventually down towards Charleston and Savannah, the main threat large hail and damaging winds. The rainfall has been tremendous. Eastern Kentucky and also eastern Tennessee upwards of 6 inches of rainfall come down in recent days so we have a flood watch in place over this region and any additional rainfall will take a toll across the area.

And how about this? Six million people dealing with heat advisories in place. Heat indices around Memphis get up to about 107 by this afternoon, before cooling to around 105, Christine, by this evening.

Let's send it back to you.

ROMANS: All right. Pedram, thank you for that. All right. Honda on the hook for $24 million for overcharging

minorities. We will tell you how it happened with an early start on your money, next.

(COMMERCIAL BREAK)

[04:58:26] ROMANS: All right. Welcome back. Let's get an early start on your money this morning.

Stocks on a winning streak. The market on the fourth straight day of gain Tuesday. The Dow climbed 76 points ,back above 18,000, folks. The NASDAQ and S&P 500 also higher.

Investors today looking toward a vote in Greece that could secure the country another bailout.

Earning season has begun. That's essentially report card for companies so far good for bank stocks, shares for both JPMorgan and Wells Fargo rose on their quarterly report card. Today, we hear from Bank of America, Delta Airlines and Netflix. They all report.

Also, Fed Chief Yellen will be talking to actually Congress today, so there could be comments about the Fed and interest rates.

Honda will pay $24 million for auto loans the government says discriminated against minorities. The federal government claims that Honda's financing division overcharged black, Hispanic and Asian customers. The investigation found that minorities paid 150 to 250 more than white borrowers regardless of credit score. The company denied it practiced discrimination but agreed to pay relief to thousands of minority buyers.

Will online deals be bigger than Black Friday? What two of the biggest retailers are claiming at 12:01 Pacific Time this morning. Amazon launched Prime Day in honor of its 20th anniversary. The online retailer will have blowout sales on thousands of products, but that's just for Prime members.

Walmart then comes out and says, oh, no. They're going to atomic -- atomic, their words -- online discounts for everyone, as well as lower shipping costs. Investors like this. The stock rose 2.2 percent for Amazon and 2.2 percent for a record high close.

EARLY START continues right now.