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Early Start with John Berman and Zoraida Sambolin

President George H.W. Bush Hospitalized; Selling the Iran Nuclear Deal; Caitlyn Jenner's Emotional Message; Greek Economy on Verge of Collapse. Aired 4-4:30a ET

Aired July 16, 2015 - 04:00   ET

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

[04:00:17] CHRISTINE ROMANS, CNN ANCHOR: Breaking news overnight: President George H.W. Bush hospitalized after a fall. What we know about his condition.

President Obama selling the Iran nuclear deal at home and around the world. He is fighting back at critics. Team coverage breaking down the latest this morning.

Plus, emotional -- an emotional Caitlyn Jenner accepting the Arthur Ashe Courage Award at the ESPYs with a powerful message.

Good morning and welcome to EARLY START. I'm Christine Romans. It is Thursday, July 16th. It is 4:00 a.m. in the East. John Berman has the morning off, folks.

Breaking overnight: a major scare for President George H.W. Bush. He is hospitalized this morning in Portland, Maine, after he fell at his home in Kennebunkport. His spokesman Jim McGrath saying, tweeting actually, "41 fell at home in Maine today and broke a bone on his neck. His condition, he is fine, but he'll be in a neck brace."

The spokesman also says the 91-year-old former president is not expected to have a long hospital stay. The elder Bush suffers from Parkinson's disease.

Beginning this morning, a new day of campaigning by the White House for the Iran nuclear deal. Vice President Joe Biden meets with Democrats on a Senate Foreign Relations Committee later today. That follows Biden's sit down with House Democrats on Wednesday and a news conference, a feisty news conference by President Obama all aimed at corralling enough support to keep the hard won agreement limiting Iran's nuclear program on track.

CNN's Jim Acosta has the latest from the White House.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Christine, answering a chorus of critics, President Obama came out swinging, insisting his nuclear deal with Iran was never designed to solve every problem with Tehran. The president brushed off the celebrations of the deal as a victory in Iran and even in Syria. And he hit back at opponents in Congress, demanding that they read the agreement.

Mr. Obama also bristled at one question on why Americans currently detained in Iran were not freed as part of the deal. He said that would have complicated their release. And he touted the agreement's controversial inspection process, dismissing doubts that Iran would get away with cheating.

Here's what he had to say.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If, in fact, we're counting the amount of uranium that's being mined, then suddenly some is missing on the back end, they got some explaining to do. This is not something you hide in a closet. This is not something you put on a dolly and kind of wheel off somewhere.

ACOSTA: But the president knows he has more explaining to do, which is why he sent his vice president up to Capitol Hill to convince skeptical Democrats. Meanwhile, the deal's toughest critic, Israeli Prime Minister Benjamin Netanyahu, argues Iran will never change. To his detractors, including Netanyahu, the president asked, where's their alternative? Christine?

(END VIDEOTAPE)

ROMANS: All right. Jim Acosta, thanks for that. Now, that exchange about -- Jim mentioned Americans being held in Iran, a rare moment where the president has lashed at a reporter. CBS White House correspondent Major Garrett asked about those four Americans, including "Washington Post" reporter Jason Rezaian being on what the White House and what Garrett described as trumped up charges.

In particular, Major Garrett asked the president how he can be content celebrating this nuclear deal when four Americans are still in custody by the Iranians. Listen to the president's answer.

(BEGIN VIDEO CLIP)

MAJOR GARRETT, CBS NEWS: Can you tell the country, sir, why you are content with the fanfare around the deal to leave the conscience of this nation, the strength of this nation, unaccounted for in relation to these four Americans?

OBAMA: I have to give you credit, Major, for how you craft those questions. The notion that I'm content, as I celebrate with American citizens languishing in Iranian jails -- Major, that's nonsense. And you should know better.

(END VIDEO CLIP)

ROMANS: The administration also scrambling to convince leaders around the world that the nuclear agreement is a good deal. This morning, Secretary of State John Kerry meets with Saudi Arabia's foreign minister. And next week, Defense Secretary Ash Carter heads to the Middle East to meet Saudi officials on their home turf. And later, Secretary Kerry will meet with Israeli officials. "The New York Times" reporting the White House trying to soften fierce, fierce Israeli opposition to the deal. Unnamed administration officials telling 'The New York Times" the U.S. is offering to increase the military aid package to Israel. One unexpected side effect of the deal, producing a slight thaw in relations with Moscow. President Obama calling President Putin to thank him for his help with the negotiations.

Joining us now with the latest on the global sales effort, senior international correspondent Atika Shubert.

I'll be putting some miles in over the next week or two, Atika.

ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: Most definitely. Not only do they have to sell this program back home, but to allies in the region, especially.

[04:05:00] There is a flurry of diplomatic activity in the Middle East, especially the focus on Saudi Arabia and Israel.

Saudi Arabia even, the effort was started earlier in the year. You have to remember, in May, President Obama met with Saudi leaders, offering them more military support and aid in preparation for this specific Iran deal, saying they will help them with any missile defense, anything else that they needed to feel safer with this deal coming for Iran's nuclear program.

Now, Israel, however, is another matter. You mentioned that "New York Times" report. Well, we are still trying to confirm the exact details of phone call. What kind of aid could be offered to Israel to boost its military? It already receives a very generous $3 billion in U.S. military aid, mainly to purchase hard -- U.S. military hardware.

So, there is a lot of question to what else could be done to bolster its own defenses. But for now, it seems that Israel wants to instead focus on the deal at hand and what it sees as the loophole. Such as the fact that Iran could develop within 10 to 15 years a nuclear weapon, albeit with limitations. That, for Israel, is a deep red line

ROMANS: All right. Atika Shubert for us in London this morning, thank you, Atika.

All right. New details this morning on Donald Trump. We have always known he's rich, but exactly how rich is now detailed in campaign disclosure forms he just filed with the Federal Election Commission. The brash Republican candidate crowing that he has now defied critics who said he'd never disclose his personal finances, as polls keep handing him very good news.

CNN's Dana Bash has the latest.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Christine, just how rich is Donald Trump? Well, he now says he has a net worth of more than $10 billion. And he says he made more than $362 million last year alone.

And with classic Trump hubris, his campaign calls his wealth so vast that it was hard to fill out the Federal Election Commission form because if a building owned by Mr. Trump is worth $1.5 billion, the box checked is only for $50 million or more.

But it's important to note that Trump did not make the details of this financial disclosure public yet, so we can verify things like claiming that he made $213 million over the 14 seasons that he was on the reality show "The Apprentice."

Now, the other thing that Donald Trump has to talk about and has been certainly talking about it a lot is the fact that he is doing well in the polls. Just for one example, "The Washington Post"/ABC poll just showed that 57 percent of Republican voters say that they have a favorable view of him. That is a big jump, almost double from what it was in just May.

So, those are the kinds of things you are hearing from Donald Trump and you'll probably hear a lot more.

One other interesting note is that he had a meeting with one of his competitors late yesterday. Ted Cruz, who -- you think they would be competing for the conservative vote particularly on immigration. But Ted Cruz understands Trump mania I think as much as anybody else, he's been very complimentary. So, we'll see how long that bromance lasts -- Christine.

(END VIDEOTAPE)

ROMANS: All right. Dana Bash, thanks for that.

And, of course, just about in the last week, a Trump license property in Puerto Rico went belly up. Trump, of course, quick to point out that he licenses his name. It wasn't actually one of his golf courses.

And Trump himself says that his ability to grow that massive wealth is one reason why he'd be good for the country. He can build something. He can build something and he can build America, make it great again. That is his campaign slogan.

Meanwhile, Hillary Clinton burning through a big chunk of her campaign cash. Her team filed the report with the Federal Election Commission. They raised a hefty $47 million, but only have $29 million in cash. The rest is spent. That's a 40 percent burn rate. The Clinton campaign has received over 250,000 donations with 94 percent of them $250 or less.

Barack Obama is about to become the first sitting president ever visit a federal prison. He'll be talking to law enforcement officials and inmates at the federal correctional center in El Reno, Oklahoma, later this morning. And he's expected to call for prison and sentencing reforms. Oklahoma imprisons more women than any state in the country, and local mayors want to talk to the president about that problem.

Nine minutes past the hour. Time for an early start on your money this morning.

Stocks higher around the world. European stocks are up after the Greek parliament approved tough economic reforms needed to secure a new bailout. That means Greece will overhaul its pension and tax systems, to cut spending and bring in more revenue.

This is how they feel about it in the street. A lot of anger in Athens. Protests in front of the parliament building turned violent overnight. Protesters threw Molotov cocktails and police responded with tear gas. Now, Greece still has to approve other reforms and a handful of countries still need to approve the new funds.

Here in the U.S., stock futures are also higher. Yesterday, stocks dipped slightly after the Fed Chief Janet Yellen said the Federal Reserve is still on track to raise interest rates this year.

[04:10:06] The annual ESPY Awards Honors the year's best in sports. But the highlight of Wednesday night's best achievements in sports. But the highlight of Wednesday night's ceremony may have been a former Olympic champion now known as Caitlyn Jenner who was honored with the Arthur Ashe Courage Award and made an emotional flee for accepting people for who they are.

CNN's Stephanie Elam was there.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN CORRESPONDENT: Christine, the ESPYs were at times heartbreaking, while at the same time, they were inspiring. There was a story of Danielle Green, the war hero who came back to work with other veterans, this after she lost her arm in battle. She received the Pat Tillman Award.

There was award for Lauren Hill, the young woman who wanted to play her one college basketball game. She lost her battle with cancer. Her parents were on hand to accept that award.

And then, there was also Devon Still. His daughter is battling cancer. His speech really moving the crowd as well as he toasted everyone for their support of him while he has been battling this so he can stay strong for his young daughter.

Of course, the one person everyone was waiting to see was Caitlyn Jenner, who took her turn in the spotlight to focus on the struggle and challenges that so many young transgender people face not just in the United States, but around the world.

CAITLYN JENNER, ARTHUR ASHE COURAGE AWARD WINNER: If you want to call me names, make jokes, doubt my intentions, go ahead, because the reality is I can take it. But for the thousands of kids out there, coming to terms with being true to who they are, they shouldn't have to take it.

(APPLAUSE)

ELAM: I talked to several people on the red carpet. For the most part, the people I spoke to were supportive of Caitlyn Jenner winning the Arthur Ashe Courage Award. Now, a few who just tempered what they had to say about it, not really giving an opinion either way.

But when Caitlyn Jenner was done with her speech, which at times did get a little bit emotional, she definitely got a standing ovation from the crowd and her family was on hand to watch her give the speech. And you could see that a couple of his children had tears in their eyes -- Christine.

(END VIDEOTAPE)

ROMANS: All right. Stephanie Elam, covering that for us this morning -- thanks, Stephanie.

Twelve minutes past the hour.

CNN with an inside look at how a powerful Mexican drug lord broke out of prison. Our crews inside the tunnel that El Chapo used for his escape. What we found, after the break.

(COMMERCIAL BREAK)

[04:15:43] ROMANS: All right. Thousands of Mexican police and soldiers are searching right now for El Chapo. Still no sign of the elusive drug kingpin who slipped into a tunnel beneath the shower stall in his prison cell and simply vanished last weekend.

Twenty-one prison guards are being questioned about his escape. The intelligence chief of Mexico's federal police force has been fired. And now, we are getting an inside look at the home at the other end of the tunnel where El Chapo slipped to freedom.

Here is CNN's Nick Valencia.

(BEGIN VIDEOTAPE)

NICK VALENCIA, CNN CORRESPONDENT: Christine, it was incredible access that we were granted. For days now, we have been trying to gain entry into that home where El Chapo is said to have emerged. We finally were granted that access, escorted in by Mexican military as well as the attorney general's office here in Mexico, initially ushered into a room that was by all means their work shed. We saw power tools plugged in to outlets and cinder blocks around us. It seemed the moment that they were done building the tunnel, they gave the signal to El Chapo and he was off on his way.

We dropped down ten feet on the initial ladder into a small space, walked another few feet and then approached a second ladder into a deeper portion of that tunnel, about 20 feet down. And when we got down there, just that magnificent feat of engineering. It seem like as crude as it was, it seemed like a professional job, building that tunnel. There were Coke bottles laying on the ground, left behind. Oxygen tanks, as well as ventilation PVC pipe right along top of that tunnel and an electrical line to provide electricity in there.

We also got to see that motorcycle. That modified motorcycle which ran on tracks which we believe El Chapo used to escape from one end to the tunnel to the other. It was cramped in there and very hard to breathe.

There was also this overwhelming smell of gas inside. I couldn't stand tall up in there. Authorities have no idea where he is. If they do, they're not saying publicly -- Christine.

(END VIDEOTAPE)

ROMANS: He is seen as a Robin Hood by some people in his country. So, there are many people who are willing to hide him in exchange, of course, the money that he has.

All right. While President Obama was pitching the Iran nuclear deal at a news conference Wednesday, he surprisingly weighed in on another topic -- the rape allegations surrounding comedian Bill Cosby.

(BEGIN VIDEO CLIP)

OBAMA: If you give a woman or a man for that matter, without his or her knowledge, a drug and then have sex with that person without consent, that's rape. And I think this country, any civilized country should have no tolerance for rape.

(END VIDEO CLIP)

ROMANS: President Obama also saying there is no way to revoke the Medal of Freedom Cosby received in 2002 from President George W. Bush. He said there's simply just no mechanism for taking the Medal of Freedom back.

The death toll rising in Kentucky following severe storms and catastrophic flash flooding. At least four people have been killed and five others missing this morning, the torrential rain and flooding leading Kentucky's governor to declare a state of emergency. Some 150 homes have been destroyed.

The threat of severe thunderstorms still hanging on. Let's get to meteorologist Pedram Javaheri for the forecast.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Hey, good morning, Christine.

That's right. The severe weather threat back again. At least it is a smaller area. That's the good news. You know, the past couple of days, over 800 reports of wind related damage across the country. The threat now confined to areas around, say, Peoria, Springfield, Illinois. That's the main area of interest I think sometime late morning into early afternoon.

The biggest threat is going to be large hail, some damaging winds yet again in the forecast. But the frontal boundary will move by the great lakes, sparks off a few thunderstorms by this weekend, brings in showers towards the Northeast sometime around Saturday and Sunday.

But notice, the bulk of the activity late this morning and early this afternoon were in Des Moines, point eastward towards Chicago and they do taper off by the time they arrive in Chicago.

But some 700 reports of lightning strikes this morning in a three-hour period in and around Omaha and also south of Omaha, along the I-29 corridor, towards Kansas City, upwards of 4 to 6 inches of rainfall in a few areas in the past 24 hours.

[04:20:02] So, we do have flood watches and warnings in place, from say Cooper out towards Des Moines. And this is a concern for today with the additional rainfall that is expected.

Btu your high temperatures in Kansas City about 94. It will feel close to 100 this afternoon, beautiful 79 out in Chicago. New York City, not bad, we make it up to 81 degrees with mostly sunny skies.

ROMANS: All right. Pedram Javaheri, thanks for that.

Twenty minutes past the hour. Violence on the streets of Greece. Violence breaks out as the country makes a risky desperate move to stay in the euro. We are live in Athens with what comes next right after the break.

(COMMERCIAL BREAK)

ROMANS: Desperate time for the people of Greece. Protesters clashing violently with police in Athens. The Greek parliament votes to accept a eurozone bailout package with painful new austerity measures. The promise is more hardship ahead.

Reporter Elinda Labropoulou live from Athens for us this morning.

First, tell us about this vote. I mean, this is -- this is as one -- as one of our reporters put it, it's like voting whether just drink the poison yourself or have someone poison you. It's very difficult for the Greek people.

ELINDA LABROPOULOU, JOURNALIST: It is very difficult for the Greek people. You could say that the session in parliament was an explosive one, much like the atmosphere outside with protesters clashing with police. The vote did go through with 229 votes in the 300-seat parliament, which might seem like a big number.

[04:25:02] But at the same time, Alexis Tsipras, the Greek prime minister, lost about quarter of his MPs who did not vote in support of these measures.

People here are saying these measures are too severe. The Greece will not able to follow them. And this is the option a lot of his MPs took as well.

So, what we expect is government reshuffle very soon, possibly within the week and then all eyes turn to the economy and seeing what happens with the banks and how they'll be able to reopen soon, Christine.

ROMANS: Let's talk about the finances. That's the politics. Now, let's talk about the finances. If this austerity goes through, if you've got more cuts to pensions, raising the retirement age, these are things people have already endured, will it work? Is it enough to allow the country to be solvent?

LABROPOULOU: Well, it seems like it's going to be difficult. And again, the prime minister himself has said that these are measures that are recessionary. But there is some light at the end of the tunnel. Greece has been putting for death relief for long time.

The IMF has come in support of that. It is saying the country needs debt relief. It's actually asking for Greece to start repaying some of the loans in 30 years from now in order to give the economy enough breathing space for it to grow.

At the same time, the Eurogroup finance ministers are holding talks right now to try and decide what they will do about a bridge loan and how to bring liquidity back into Greece. The European Central Bank is also expected to convene to answer this question today.

So, slowly, we are seeing moves to stabilize the situation again, Christine.

ROMANS: And they have to put assets into a fund to be -- try to figure out how to privatize, try to figure out how to make money from some of the rich assets that are already within the country, a lot of work to do. Thank you, Elinda, for that.

Breaking news overnight: President George H.W. Bush hospitalized after a fall. We have the very latest on the former president's condition right after the break.

(COMMERCIAL BREAK)