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New Day

Deal With Iran; Drug Lord Escapes Prison. Aired 7:00-7:30am ET.

Aired July 13, 2015 - 07:00   ET

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

[07:00:00] ISA SOARES, CNN CORRESPONDENT: Banks have been closed for two weeks now. Capital controls have been in place. Everyone looking at the ECB, the European central bank, as to whether they will open. Time is of the essence. We are not there by any means.

But now, Greece has the hard work to do. Alisyn, back to you.

ALISYN CAMEROTA, CNN ANCHOR: Isa, thank you so much for all of that background. And it is also deadline day, again, to reach a nuclear deal with Iran. Negotiators say they just might make it this morning.

Reportedly on the verge of sealing a deal after jumping through major hurdles this weekend. But they are still working to hammer out the fine print.

CNN's Senior National Correspondent Nick Robertson is live in Vienna with the very latest. What is happening at this hour, Nick?

NIC ROBERTSON, CNN CORRESPONDENT: You know, Alisyn, it continues to move here. I really feel that the excitement level, if you will, is stepping up. The expectation that something is going to be achieved is growing. I was talking to the diplomat a few minutes ago. He said, he feels it's getting more likely rather than less likely.

We have heard from all in the past 24 hours saying it's a couple issues outstanding. The Iranian foreign ministers, the spokesman has tweeted this morning saying that it's just going to take a little more political will but no one is looking for an extension.

This of course, today, is now the fourth deadline in the past few weeks. We have had this morning a meeting here of what's known as the P5 plus one with Secretary of State John Kerry along with the Chinese, Russian, French, German prime ministers, Eu Foreign policy, British ministry represented there as well. In that meeting, everyone looking very, very stony faced. The impression that is being created is a deal is close, but it's not there yet.

Interestingly, the Chinese foreign minister said any future negotiations cannot be and should not be prolonged. That is the first thing we have heard from a foreign minister talking at these talks here, indicating that perhaps the deal cannot be totally wrapped up today and perhaps more details to be hammered out.

The expectation is something is going to come and today is the day. Chris?

CHRIS CUOMO, CNN ANCHOR: All right. Nick, keep us up to date. We will check back in a bit. Let's go to the hunt for Mexico's most wanted man Joaquin El Chapo Guzman, the notorious drug lord nicknamed the stocky one. Broke out of a maximum security prison through a mile long tunnel.

Mexico's president vowing to recapture El Chapo. CNN's Polo Sandoval lives outside prison in Mexico. Not the first time, but second time El Chapo has done this.

POLO SANDOVAL, CNN CORRESPONDENT: You know what, Chris, Joaquin's Guzman's escape is truly hard to believe. We are going to break it down for you in a few seconds here. First, what's happening here on the ground just outside the Mexican town of Toluca. As you can see police have been on patrol around the prison perimeter itself.

Here, we know a partial perimeter has been set up around the town of Toluca itself. At this point, Chris, just over 30 hours into the search and no sign for this ruthless cartel kingpin.

This morning a massive international manhunt for one of the world's most powerful and deadly drug trafficking kingpins is underway. Joaquin Guzman, known as El Chapo and a major supplier of heroin, cocaine and marijuana in the United States staged a brazen escape from this Mexican prison.

It's the second escape. And this time, he busted out of a maximum security federal prison just west of Mexico City. Prison officials said guards at the federal prison performs a routine check of camera feeds and noticed Guzman was missing on Saturday evening.

At 5'6", Mexican authorities believed El Chapo, Spanish for shorty fit through a carve 20 by 20 inch hole located near the shower of his cell. Beyond that, a vertical passage with stairs leading to a tunnel stretching nearly a mile. The escape infuriated U.S. law enforcement officials who pushed for Chapo's extradition to the United States at the time of his recapture last year. They said it's a corruption and questioned the ability of Mexican officials to keep him behind bars.

TOM FUENTES, CNN LAW ENFORCEMENT ANALYST: It's estimated that he may have murdered or ordered the murders of more 10,000 people. So this is not somebody that is playing around with prison officials. He pretty much controls what he wants to do and they go along with it. They look the other way to keep their families alive.

Guzman got out by a way of an elaborate underground escape route complete with electricity, lighting and treck for motorcycle and even ventilation. Investigators swarmed a half built house at the other end, but Guzman was nowhere in sight. The two-time escapee broke out of prison in a laundry court back in 2001 and are lumped then for more than a decade.

A break in that case came in 2013 when they discovered seven houses in Mexico that were connected by an intricate web of secret passageways. Guzman invading authorities through a hidden hatch under his bathtub.

[07:05:00] And that search continues outside of Mexico City. At this hour, I can tell you that there's a real concern that Guzman may have fled to his native state, Sinaloa, a place that he would eventually hide in. As for the working theory on how this could have happened, Alisyn, he may have had help possibly from the inside.

In fact at least 18 prison guards were transferred from Mexico city and they are being questioned at this hour. Back to you.

CAMEROTA: Yes. With a mile long tunnel, it seems like he had help somewhere. Polo thank you for that.

Well, after weeks of controversy, a new Miss USA crowned last night. The completion coming under the cloud of Donald Trump derogatory comments. He was a no show for the pageant that he co- owns, but did his absence prevent him from being a distraction? Our Athena Jones, is live in Louisiana with more so what did the contest look like last night?

ATHENA JONES, CNN CORRESPONDENT: Good morning, Alisyn. Well, there was no mention of Donald Trump during the pageant. But I asked the winner, Olivia Jordan, after the win, if the controversy surrounding his remarks about Mexican immigrants overshadowed the event.

She said it came together but she was glad the cable channel Reelz swept in and saved the sash allowing the show to go on. Trump skipped the event. He's part owner of the pageant. He sent out a tweet saying he was going to miss the event because he was campaigning in Phoenix.

Now, I spoke with Trump's campaign. He had no official events on Sunday. The show aired on cable channel Reelz after Univision and NBC pulled out in protest over Trump's remarks. Miss Texas, a 22-year-old Mexican American who grew up on the Texas/Mexico border came in second place.

Today, one more republican throws his hat into the ring. Governor Scott Walker of Wisconsin saying on twitter, I'm in. He makes his presidential announcement later today. Chris?

CUOMO: All right. Athena Jones, thank you very much. Climate change protesters causing delays at London Heathrow's Airport overnight. Demonstrated chained themselves to the gates. They are members of plane stupid. A possible third runway at the airport there are against the operations at the airport resumed with delays.

CAMEROTA: Two Illinois police officers recovering this morning after being ambushed and shot in a Chicago suburb. Two responding to a 911 call Sunday when a man with a shotgun walked up and opened fire. A shootout ensued. The suspect was shot and killed. Police also found a man shot inside the home police were called to. Both officers will be OK. CUOMO: The confederate flag is down in South Carolina. But the

symbolic flight is far from over. So over the weekend in Florida, thousands rallied in support of the flag, many wearing t-shirts donning the phrase, heritage, not hate.

And in Memphis, the other side of the movement on this play, today is Nathan Bedford Forest Day, a confederate general. Last week, they voted to remove his remains and statue from a city owned park, Alisyn.

CAMEROTA: All right. Let's get back to the Iran negotiations. Because all signs point to a deal this morning, but obstacles stand in the way in the top and the halls of congress. Let's bring in Peter Beinart he's our CNN's Political Commentator and an associate professor at the City University of New York. Peter, great to see you this morning.

PETER BEINART, CNN POLITICAL COMMENTATOR: Nice to see you.

CAMEROTA: OK. So the latest deadline is tonight at midnight. We have, just crossing the wires, the Iranian foreign ministers does not support any extension this time. And has something has to happen today. He doesn't want to extend it beyond. What do you think is going to happen here?

BEINART: I think the signs suggest that there is likely to be a deal today. I don't think the deadline matters all that much. What I have heard is even yesterday, they have pretty much reached agreement on most of the issues. They are trying to make sure when they come out with a joint statement both the Iranians and Americans are saying the same thing. With the framework deal, it

turned out the Iran's had one interpretation and the Americans had another. And that was kind of a bad PR. So I think they were taking the time to try to make sure that, that won't happen again. one sticky point is Inspections.

The Iranians didn't want the access the U.S. was asking for. Do we know what they will have agreed to?

BEINART: We don't know. It will be built around the additional protocol, which is a kind of higher level of inspection access for the international atomic agency inspectors that allow them to inspect sites on short notice. You have to give some notice. And there is some mechanism for resolving a situation if the host country in this case, Iran objects.

[07:10:00] CAMEROTA: And sanctions, will they be lifted immediately?

BEINART: I think it depends on what you mean immediately. I think that whether they will be lifted on day one, but that doesn't happen for six months, which is to say they are going to actually have the clock is really only going to start down the road about six months after some other things are done, then U.S. sanctions will be moved earlier. CAMEROTA: If there is a deal today, it still has to come back

here and pass through the U.S. congress and that is another big sticking point, in fact. Speaker of the house, John Boehner said he doesn't like it. Listen to what he said about the deal.

JOHN BOEHNER, SPEAKER OF THE HOUSE: From everything that's leaked From the negotiations, the Administration backed away from Almost all the guidelines they Set out for themselves. I don't want to see a bad deal. If, in fact, there's no Agreement, the sanctions are going to go back in place.

CAMEROTA: Has the U.S. backed away from all the things they originally wanted?

BEINART: No, not all the things. The U.S. backed away from some statements that were made especially by the Bush administration. But the question is, what is the alternative? It's true, Iran is not completely capitulated. One of the reasons Iran is not because we don't have leverage over them. We don't have good options according to American military officials. The alternative of walking away and putting on new sanctions, the problem is even if the U.S. puts on new sanctions, it's likely they might, from other countries, unravel.

The compression on Iran goes down, not up. So I think the debate, when it takes place in Washington, is going to have to be what does the

deal look like compared to the real world alternative, not what America might like.

CAMEROTA: So in other words, after all the contortions, Secretary of State John Kerry has gone through, all the deadlines and extensions, this deal still might die in U.S. congress?

BEINART: Yes, but it's not likely. If you think about it, if congress passes a resolution aimed at stopping the deal, Obama can veto that and only needs one-third, one house of congress to sustain the veto. He doesn't need the republicans as long as he keeps a significant chunk of democrats on board, his veto will be sustained and the deal will go forward.

CAMEROTA: So if this deal happens today, does that mean a new era? A new relationship between the U.S. and Iran?

BEINART: That's premature. They had a death to America rally in Iran this weekend. There's a lot of hostility. At least a dialogue has begun. In the best case scenario, that dialogue can bear some kind of fruit in Syria and Afghanistan where you need the U.S. and Iran at the table if you are going to have a peace agreement.

CAMEROTA: Peter Beinart, always great to get your insight. Thanks so much.

BEINART: Thank you.

CAMEROTA: Chris? CUOMO: Donald Trump, victim of the straight talk people crave or

a demagogue who is stoking anger, rational and irrational. A top adviser live on "New Day" will lay out the case for Trump. We will test it and you decide.

[07:15:00] (COMMERCIAL BREAK)

SEN. LINDSEY GRAHAM, PRESIDENTIAL CANDIDATE: I think he's hijacked the debate. I think he's a wrecking ball for future of the

republican community and we need to push back.

CUOMO: All right. You have heard Lindsey Graham. You have heard people criticize Trump. You have heard them criticize back. Who is right? What about the latest it ration about Mexican immigrants, with Trump seeing what happened with El Chapo as an example of failed policy down there. We should discuss it. He is real and people are going to see him.

So joining us this morning is, executive vice president of the Trump Organization, and special council to Donald Trump, Michael Cohen. Good to have you this morning. Thank you for being on the show. Where do you want to start?

MICHAEL COHEN, SPECIAL COUNSEL TO DONALD TRUMP: So I would like to start with even your CNN reporter in Louisiana talked about the disparaging comments Mr. Trump made about Mexican immigrants. He never made disparaging comments, what he said specifically and I have talked about it, it's Mexico sending, not the Mexican people, not certainly Latinos. He was talking about Mexico. They are allowing people to pour through their border. It's a problem for our national security.

CUOMO: We are both lawyers.

COHEN: Yes, we are.

CUOMO: I appreciate what you are doing. Yes, he has talked about the Mexican government and in the ways you are describing. He's

referred to the people coming across in very ugly way that is made it seem as though most are the most ugly of humanity there is to offer. That set a lot of people off. Why deny that? You are a surrogate. Why doesn't he come out and say they are mostly rapists and criminals, I shouldn't have said it.

If you look at Wikipedia, you don't have to just look at Rupert Murdock. Wikipedia says citizenship is the right to have rights and a right to a bundle of other rights upon citizens. They are jumping borders illegally. They are criminals. They are committing a crime.

COHEN: No question about it, you come about without following the legal process, you are illegal by all definition of the law.

CUOMO: Your man, Donald Trump said they are rapists, bad and this. That's not true, in fact. And it wasn't nice. COHEN: But in the last two weeks, it may not be nice, but it

happens to be potentially and partially true.

CUOMO: Partially true is not enough.

COHEN: It is enough for us arguing as legalese. Maybe that is correct but Donald Trump has sparked a conversation about really immigration reform and that's something that I don't think the Republican party was prepared at this time for.

CUOMO: I will give you, they were not prepared for somebody to come up and hijack a conversation that's been going on. The idea we need immigration reform is not new. How we do it is what we are struggling with. Is he sparking a conversation or is he feeding anger? Is he a demagogue as opposed to being a voice of reason?

[07:20:00] COHEN: I think Donald Trump is the voice of the silent majority. I think he's awoken that silent majority. I think people are very angry. The people who are the most angry are the legal immigrant who is see their jobs fleeing because you have this illegal class of individuals that unfortunately have to work for lower wages than what, you know, the minimum wage requirement is.

CUOMO: Trump is no champion for legal immigrants. He is stoking the anger of people who don't like what's going on with illegal immigrants.

COHEN: Donald Trump is a champion for it.

CUOMO: How so?

COHEN: Well, first his family are immigrants from his father to current wife.

CUOMO: So what?

COHEN: So is mine. We believe there is a process.

CUOMO: What I'm saying is don't run away. You are making the same argument. He shouldn't have said they are rapists, they are this, drug dealers and that. Some are good people. He shouldn't have said it. True or false?

COHEN: No, I disagree. I really believe that Mr. Trump was making his voice heard.

CUOMO: He doesn't have the right to say it. It's wrong. Most people are not rapists and drug dealers and some are OK.

COHEN: If we have a significant number of these individuals -- the fact they are crossing the borders --

CUOMO: That's not what he said.

COHEN: Many are getting involved in drug trades.

CUOMO: Not the way he suggested.

COHEN: I don't think he said in any proportion. He said they are coming over, they are rapists and drug dealers.

CUOMO: Some, I assume --

COHEN: Donald Trump, unlike the other politicians, he doesn't read off a stump speech. He doesn't have a teleprompter.

CUOMO: You are excuse zing it.

COHEN: I'm not excusing it. He's a good man. He believes in this country. His theme of making America great again is something he is 100 percent on.

CUOMO: He has to follow through ongoing thing that is are helpful and beneficial and apologizing to a community.

COHEN: He didn't insult anybody.

CUOMO: He did. They are very insulted.

COHEN: Many of them are using the language and the unfortunate liberal media's attack upon Mr. Trump.

CUOMO: He said it.

COHEN: That's what he is doing.

CUOMO: He said it. I'm not jumping all over him. Come on, he said it. He should have apologize and moved on.

COHEN: Yesterday, he said things as well. He said for everyone that crosses the border, I will charge them $100,000.

CUOMO: So he says that. How you going to get them to pay it?

COHEN: When he becomes president, he will figure it out.

CUOMO: That's a great time. How about what he tweeted about El Chapo. What did he tell us? What did he tell us? There it is, Mexico's biggest drug lord escapes from jail unbelievable corruption and USA is paying price. I told you so. What did he tell us?

COHEN: That the Mexican government is corrupt. That's what he's been saying for a long time.

CUOMO: You think he's the first to say that?

COHEN: Not the first or the last. He's got the biggest voice and he's saying it today. That's important.

CUOMO: But how was that even helpful? El Chapo escaping means he is right about what he said about Mexican immigrants?

COHEN: There's a room about twice or three times the size of this studio, which is quite large filled from floor-to-ceiling with narcotics. They are bound for the United States. Issue. Huge issue.

CUOMO: We know the problems exist, but how do we solve them. I'm going to charge people that come illegally $100,000.

COHEN: He opened the eyes to many Americans who didn't know sanctuaries exists.

CUOMO: What sanctuaries?

COHEN: On the border that is allow them to stay.

CUOMO: You are talking sanctuary cities?

COHEN: Yes. They are in disputes with ICE and how to hold them. They are not safe havens the way you are describing. They are. They are not. They will not turn them over, Chris.

CUOMO: They will. There's a legal process. There's a whole reason they got to this. More people have been deported in the last six years

than the previous decade.

COHEN: There are more people are coming across the borders.

CUOMO: There are fewer.

COHEN: I don't believe that at all. That's what's happening, the numbers get distorted by the government.

CUOMO: Or by Trump.

COHEN: I don't know about Trump.

CUOMO: The ratio of how many bad people.

COHEN: I don't think he stated numbers. It was a general statement.

CUOMO: It was wrong. Do you admit that?

COHEN: I will not.

CUOMO: You came in and made the points. You are going to have the opportunity going forward. We want people relevant in the race to come on and talk about things that matter. That includes you and the big man himself.

Alisyn?

[07:25:00] CAMEROTA: OK. Chris, here comes number 15. Scott Walker joining the Republican party. Is his announcement being overshadowed by Donald Trump?

John King sorts it out on Inside Politics.

(COMMERCIAL BREAK) CAMEROTA: It is now up to Greek's parliament, Greece's

parliament to weigh in on the third bailout in five years. Eurozone leaders reaching an agreement after marathon talks dragged on almost 17 hours. Serious reforms and aid and Greece will not be forced out of the Eurozone.

CUOMO: Mexico is pulling out all of the stuffs of the notorious drug lord, Joaquin El Chapo Guzman escaped from Mexico maximum prison through a tunnel over the weekend. They call it an escape to the front and vows to recapture Guzman. He was captured in February of last year after ten years on the run because he had broken out of prison.

CAMEROTA: Could smoking cause schizophrenia? Data finds people who smoke cigarettes are twice as likely to develop the disorder. Scientists say they are building a strong case that nicotine in cigarettes changes the brain but more studies are needed.