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Escaped Killers' DNA Found In New York Cabin; 2016 Hopefuls Weigh In On Controversial Flag; President Obama Speaks Candidly On Race In The U.S.; Positive Signs After Summit On Greece Wraps; Samsung Apologizes For MERS Outbreak; U.S. Blames China For Hacking Of Government Systems; After ISIS Driven Out, Scars Remain In Tal Abyad; U.N.: War Crimes Likely Both Sides In Gaza War; China's Dog-Eating Festival Draws Outrage; Taylor Swift Takes On Apple And Wins. Aired 3- 4a ET

Aired June 22, 2015 - 03:00   ET

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


(COMMERCIAL BREAK)

ERROL BARNETT, CNN ANCHOR: As protesters hit the streets, there's new hope of a deal to prevent an economic meltdown in Greece.

ROSEMARY CHURCH, CNN ANCHOR: Also ahead an important new clue in the hunt for two fugitive killers in New York.

BARNETT: And U.S. President Barack Obama gets real on race using a highly offensive word to help prove his point.

CHURCH: Hello, everyone and welcome to our viewers here in the United States and all around the world. I'm Rosemary Church.

BARNETT: And I'm Errol Barnett. This is CNN NEWSROOM. We begin this hour in upstate New York where investigators say they have a promising new lead in the search for those two escaped killers.

CHURCH: A law enforcement source tells CNN that police have found DNA from Richard Matt and David Sweat in a cabin near the Clinton Correctional Facility. Jason Carroll has our report.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Tests now being run on materials found inside a cabin located in a wooded area a little more than 20 miles west of the Clinton County Correctional Facility. Sources tell CNN, the DNA matches that of escaped cons Richard Matt and David Sweat. State police are still cautious about the findings.

MAJOR CHARLES GUESS, NEW YORK STATE POLICE: We have recovered specific items from that cabin. We have forwarded them to the appropriate laboratories and reached conclusive determination, but we are not prepared to release that evidence at this time.

CARROLL: Search teams descended on the area. Road blocks set up, alerts put out warning residents to be vigilant. And on Saturday nearly 300 miles away, word of another possible sighting of fugitives near the New York, Pennsylvania border in the town of Friendship. GUESS: We conducted a thorough search that has now ended. We have declared that area clear.

CARROLL: Also becoming more clear how the men gathered materials to make their escape.

(on camera): A source familiar with the investigation tells me investigators are looking at whether tools or other contraband was hidden inside frozen hamburger meat passed on to Matt just about a week before escape. That meat did not pass through a metal detector, which is a violation of prison policy.

(voice-over): Officials are also looking into whether Joyce Mitchell, the prison employee now facing charges for her alleged role in the escape may have convinced a guard to pass Matt the frozen meat.

Several guards now under investigation including Gene Palmer, he worked on the so-called honor block where Matt and Sweat were housed. His attorney says Palmer did not know of any escape plans.

ANDREW BROCKWAY, ATTORNEY FOR GENE PALMER: Hindsight is 20/20. Right now, he sees things that have happened throughout the past year to two years that have opened up his eyes. He's very proud individual. He thinks that he has information that will be helpful.

CARROLL: Palmer knew both inmates for several years. He accepted several paintings and drawings Matt made for him. Investigators questioned Palmer for nearly 14 hours on Saturday.

BROCKWAY: Gene was extremely truthful and forthcoming. He wants these two individuals to be caught and anything he can do to help law enforcement do their job he is willing to cooperate.

CARROLL: Jason Carroll, CNN, Dannemora, New York.

(END VIDEOTAPE)

CHURCH: We turn now to South Carolina where some leading politicians say it is time for the confederate flag to go in the wake of last week's massacre at a historic black church. The admitted killer, who has been pictured holding that flag, said he shot the church goers to spark a race war.

BARNETT: On Monday, South Carolina Governor Nikki Haley and other politicians join the call to remove the flag from state capitol grounds. CNN's Brianna Keilar has more.

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): With the political debate raging over the confederate flag in front of South Carolina's state house, Republican Governor Nikki Haley looked to ease tensions.

GOVERNOR NIKKI HALEY (R), SOUTH CAROLINA: Today, we are here in a moment of unity in our state without ill will to say it's time to move the flag from the capital grounds.

KEILAR: Flanked by Democrats and Republicans, Haley tried to unify her state as the flag controversy threatened to tear it apart.

HALEY: The murderer now locked in Charleston said he hoped his actions would start a race war. We have an opportunity to show that not only was he wrong that just the opposite is happening.

KEILAR: Several GOP presidential hopefuls praised Haley's move, which gives them cover on an issue they have struggled to navigate. Friday South Carolina Senator Lindsey Graham said this.

LINDSEY GRAHAM, SOUTH CAROLINA SENATOR: There is a confederate war memorial out front and some African-American memorial.

UNIDENTIFIED FEMALE: And that works for you?

GRAHAM: It works here.

[03:05:04] KEILAR: But today he said it is time for the flag to go. Before Governor Haley's announcement, Jeb Bush reminded voters that in Florida, quote, "We acted, moving the flag from the state grounds to a museum where it belonged."

But he did not explicitly say South Carolina should do the same. Marco Rubio who opposed Bush's move in Florida in 2001, this weekend said it was a state issue.

MARCO RUBIO (R), PRESIDENTIAL CANDIDATE: That is up for the people of South Carolina to make and I think they'll made the right one like they've made them in the past.

KEILAR: As did Rick Santorum.

RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: This is a decision that needs to be made here in South Carolina.

KEILAR: And Mike Huckabee completely dismissed the issue.

MIKE HUCKABEE (R), PRESIDENTIAL CANDIDATE: For those of us running for president, everyone is being baited with this question as if somehow that has anything to do whatsoever with running for president and my position is it most certainly does not.

KEILAR: Ted Cruz, Rand Paul and Santorum previously received money from Earl Holt III, the leader of a white supremacist group linked to confess Charleston shooter, Dylann Roof. All three candidates are donating it to the Mother Emanuel Church's Hope Fund to help victim's families.

(END VIDEOTAPE)

KEILAR: It's important to note, Republicans were thrust into the spotlight on this issue by a tweet from failed 2012 Republican presidential nominee, Mitt Romney. He condemned the confederate flag on South Carolina's capital grounds, creating a conundrum for Republicans in the very important early primary state where the most conservative part of the Republican base determines the victor. Brianna Keilar, CNN, Washington.

CHURCH: And the confederate flag debate has a top lawmaker in Mississippi calling for changes to its state flag. The confederate battle emblem is incorporated into the top left corner of the Mississippi flag. The state's house speaker, Philip Gunn says, the confederate flag has become offensive and needs to be removed from the state flag.

BARNETT: There is also a commercial aspect to all of this, retail giant, Walmart tells CNN, it will stop selling confederate flag merchandise in its stores and on its website.

Reuters is also reporting another retailer, Sears, says it will remove sales of confederate flag merchandise by third parties on its online marketplace. Sears does not sell confederate flags at its stores.

CHURCH: President Obama spoke candidly about race in the wake of that racially motivated shooting in Charleston.

BARNETT: The country's first black president used the "n" word during a podcast with Mark Marin to explain there is more to be done to combat racism. Michelle Kosinski reports.

(BEGIN VIDEOTAPE)

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT (voice-over): The president with one word in a comedian's garage for a podcast hits more bluntly than any speech.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: And it's not just a matter of it not being polite to say nigger in public that's not the measure of whether racism still exists or not. It's not just a matter of overt discrimination. Societies don't overnight completely erase everything that happened 200 to 300 years prior.

KOSINSKI: The shock value lost on no one, but the White House denies that that was his intent or that it was even planned. Says it just came out.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: The president was merely making an argument in an informal setting.

KOSINSKI (on camera): He had to have known that this was going to get a reaction, right?

EARNEST: I don't think he was surprised by that, but I do think that it has prompted careful consideration of what exactly he said.

KOSINSKI: It's the latest of several strikingly emotional statements after the Charleston shootings.

PRESIDENT OBAMA: Communities like this have had to endure tragedies like this too many times. I refuse to act as if this is the new normal.

KOSINSKI: This may be the first time since the Trayvon Martin shooting three years ago that the president spoke directly, personally enough that it was controversial.

PRESIDENT OBAMA: You know, if I had a son, he would look like Trayvon.

KOSINSKI: President Obama, though, has long fielded criticism including within the black community for seeming reluctant to speak forcefully on race for often trying to carefully temper his words, strike a perfect balance. He campaigned, of course, on trying to move the national conversation beyond race.

PRESIDENT OBAMA: There is not a black America and white America and Latino America and Asian America. There is the United States of America.

KOSINSKI: As for the surprise of hearing the president say the "n" word he did write it and refer to it more than a dozen times in his book "Dreams From My Father" on how that word affected him growing up and shaped his private views on race, more of which we're hearing now.

(END VIDEOTAPE)

KOSINSKI: Some analysts are saying it is about time we hear President Obama speak so directly on this issue and of course, not everybody is happy he decided to use the word and some people are surprised that people are surprised by it.

It's hard to imagine, though, that the president didn't think about the provocative power of using that word when he decided to even it was on the spot.

[03:10:07] I mean, this is a word that we don't even feel comfortable using when we're talking about that word. It's clear though that this kind of discussion is exactly what the White House wants. Michelle Kosinski, CNN, the White House.

BARNETT: Now to other big story we are following, an end could be in sight for Greece's debt crisis. Eurozone leaders say they are making slow progress toward a deal after wrapping up an emergency summit in Brussels on Monday.

CHURCH: Greece submitted a new proposal on economic reforms over the weekend, which has received some support from country's international creditors, but German Chancellor Angela Merkel remains cautious.

(BEGIN VIDEO CLIP)

ANGELA MERKEL, GERMAN CHANCELLOR (through translator): But what's also clear from the discussions is that there is still a lot of work to do and the time we have threat is very short.

(END VIDEO CLIP) CHURCH: And for more on the Greek debt crisis, we want to bring in Elinda Labropoulou. She joins us live from Athens, Greece, and we heard it there, didn't we? Time is fast running out with, of course, that June 30th deadline approaching, what's likely to be in that final deal.

And whatever all the parties decide in the end, a final agreement, of course, needs to go to the Greek parliament for ratification that could take time so where do things stand right now?

ELINDA LABROPOULOU, JOURNALIST: Well, at the moment, we're looking at a euro group tomorrow where we're likely to have some kind of more solid decision about what the proposals are and what they entail and then that is likely to be taken to an EU summit on Thursday and Friday in order to have a final agreement.

And once we have that then a new round of possible complications begin because then this new agreement will have to be taken first to the Greek parliament, something that we expect could happen as early as this weekend.

And only if it's ratified there, then it will be taken back to Europe where a number of national parliaments may also need to ratify a new agreement. This is one reason why it's possible that an extension may be given.

It's something that is very much talked about just to avoid some of these procedures because, of course, time really is of essence. Greece's bailout ends at the end of this month on the 30th of June and Greece would then find itself without a bailout and without access to the markets and without access to external funding.

This is what everybody is trying to avoid and it's also the time that Greece has to pay the IMF the money it owes. If it doesn't, Greece could be defaulting. By now we have seen so many rounds of talks. The optimism is there that we are getting really close to a solution that will at least avoid the possibility of a Greek default.

CHURCH: That is what most people want, isn't it? But you were saying there, there is a possibility of an extension here. So perhaps that June 30th deadline is not a real deadline. Is that what you are suggesting? I mean, what if they don't agree at that date or perhaps even by the extension? Nobody really wants to see Greece default here.

LABROPOULOU: Well, this is exactly what the next question will be, even if there is -- you know, if we make it through this deadline and there is an extension or new agreement, something that we will, of course, know in a week's time.

Then the problems don't end there, the new deal, from what we understand, comes with a lot of austerity measures, something that this Greek government was completely against. It was voted in to avoid austerity, to eliminate austerity.

But you know, we're looking at pension cuts. We're looking at VAT rises. We're looking at a number of very unpopular measures as a lot of the ruling politicians may not accept. So what we're likely to see is a number of political developments in the short run and also in an extension if that have been given.

But of course, the Greek people have very clearly said that this is what they want. They want to stay in the euro at least four in five Greeks, according to the polls have very clearly voiced they believe that Greece belongs in the euro.

A number of them, thousands of them were right behind me right outside parliament last night saying Greece belongs to Europe and one in two have said that they will do whatever it takes to make sure that they do stay in Europe -- Rosemarie.

CHURCH: Yes, the pressure very much on Greek leaders to ensure that they cut some spending and that they cave to some of the requests, certainly from Germany. Elinda Labropoulou talking to us there from Athens.

While we're talking, of course, let's bring up, we want to have a look at what is happening at the German stock exchange.

[03:15:03] Now trading has only just begun, but people are going to be watching this very closely to see what sort of impact these talks and the possibility of some sort of deal being made here.

But as we heard from Elinda there is this June 30th deadline. But there will be an extension because every effort will be made to try to avoid any default here on the part of Greece. We'll be watching that very closely.

BARNETT: U.S. and Chinese officials are set to meet for annual talks aimed at strengthening ties, but the timing, let's call it complicated. The U.S. suspects that China is behind a massive hacking scandal. We'll get you details on this coming up.

CHURCH: Plus Samsung issues a public apology for the deadly MERS outbreak. What the company is doing to make retributions to those affected by the virus. We're back in a moment.

(COMMERCIAL BREAK)

CHURCH: Welcome back, everyone. Samsung has issued a formal and public apology to South Koreans for not stopping the MERS outbreak.

[03:20:04] There are 175 cases of MERS in South Korea, 27 of those who got the disease died, about half of the illness have been linked to this one hospital.

(BEGIN VIDEO CLIP)

JAY Y. LEE, SAMSUNG GROUP (through translator): Our Samsung Medical Center was unable to stop the MERS infection and its spread and caused too much suffering and concern to the public. I bow my head in apology.

(END VIDEO CLIP)

BARNETT: Kathy Novak is following this story for us from Seoul. She joins us now live. Tell us more of what Jay Y. Lee had to say and why culturally in South Korea this is considered quite significant.

KATHY NOVAK, CNN CORRESPONDENT: Culturally, it is a big deal, Rosemary. Of course, we saw this very public apology, the very deep bow and the fact that it is coming from the top of Samsung, one of the major companies here in South Korea, considered somewhat corporate royalty, I could say.

And the fact that it is coming from Lee is because his father, the head of Samsung has actually been in Samsung Medical Center since he suffered from a heart attack last year.

His son there was saying that he understands some of what the families are going through. But of course, not to the extent of people who lost loved ones. And he went on to say that he offers deep condolences for those losses and apologies to anyone who was affected.

We know almost half of the infections can be linked to Samsung Medical Center and promises now that more will be done to overhaul the operations there once the worse of this MERS outbreak is completely over.

BARNETT: Errol here for you, Kathy, does it seem that people are accepting of this apology? After all you do have 27 deaths as a result of all this.

NOVAK: It seems that they are, Errol. It is in the early stages. We just heard this apology today, but some of the reaction that's been around on social media was that the apology needn't necessarily have come from Samsung and some are calling on the government and President Park Geun-Hye to also issue a formal apology for the government's handling of this outbreak.

We know that in the early stages, the president acknowledged that there were insufficiencies in the way that the government handled it. We saw the health minister apologize, but not in this very public and formal way that we saw the Samsung acting chief do it.

So some people are now that it's really the government that is at the heart of all this and that is where the apology should be coming from -- Errol.

BARNETT: We will certainly see if there are more apologies to come. Kathy Novak live for us in Seoul -- Rosemary.

CHURCH: Errol, a U.S. Senate Committee is set to convene a hearing today on the recall of defective airbags by Japanese manufacturer, Takata. A new report from congressional investigators says Takata ignored years of warnings about faulty air bags and even put safety inspections on hold due to cost concerns. U.S. regulators recalled 34 million cars, the largest auto recall in history. Authorities have linked the airbags to seven deaths. BARNETT: It has been another wild ride for Chinese financial markets. The Shanghai Composite started the day down as much as 4.5 percent before rebounding into positive territory. The index finished up more than 2 percent as you see here. For the year, the Shanghai Composite is up more than 40 percent, but the past five trading sessions have cut into those gains. Many analysts fear the market is already in correction territory.

U.S. and Chinese officials are set to meet this week in Washington for talks aimed at improving trust and cooperation. However, hanging over their heads are accusations from the U.S.

CHURCH: They blame China for a government computer breach that could affect the personal data of at least 18 million current, former and prospective federal employees and that number is expected to grow in what is considered the worst security breach ever against the U.S. government.

We do want to bring in David McKenzie now who is live in Beijing here for the latest on the China hacking story. David, as we mentioned, U.S. and Chinese officials meet this week to discuss trust issues and U.S. officials say they do plan to raise concerns about hacking. How is China likely to react?

DAVID MCKENZIE, CNN CORRESPONDENT: Well, China has reacted today again in their regularly scheduled briefing just moments ago and their reaction is predictable and standard with previous reactions. They are basically saying that the issue of cybersecurity is something that needs to be dealt with through cooperation, communication.

And they squarely blame the U.S. for cutting off that communication by accusing China of these alleged crimes.

[03:25:01] That China has repeatedly denied it has anything to do with this latest hack, which has accessed millions of officials and prospective officials of the federal government in the U.S. and certainly China is saying there is very little proof and that these accusations are, quote, "irresponsible."

CHURCH: And David, why do you think we are seeing an apparent reluctance on the part of the United States to blame China publicly for this latest cyberbreach.

MCKENZIE: Well, most of the blame has come from the legislators, the finger pointing as well kind of unnamed sources to CNN and others. There is on some level an attempt to place the blame on China.

But notably the U.S. Justice Department and the White House hasn't weighed in on this issue, which indicates potentially that the investigation is still ongoing or they are trying to gather the evidence to allow them to accuse China.

There is also another at play, which is overall the U.S./China relationship, which is far more complex and important than just the issue of hacking and in these talks in the next few days in Washington, in the U.S., they certainly will be dealing with issues like Iran, North Korea, economic, bilateral trade.

All of that on some level overshadows an importance the hacking issue. Maybe officials are trying to downplay it at this time.

CHURCH: Certainly, a lot to cover and of course, we will be watching those talks between officials from the United States and from China very, very closely. David McKenzie reporting live from Beijing, many thanks to you.

BARNETT: The U.N. releases a highly anticipated report on last summer's Gaza war, who the organization is holding responsible for the violence, next.

CHURCH: And living under ISIS oppression, Arwa Damon gets firsthand accounts from a resident of a recently liberated town in Syria.

(BEGIN VIDEO CLIP)

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: There is a group of men back there who don't want to appear on camera because they still have relatives living in the ISIS stronghold of Raqqah, but they were talking about how retched life under their rule was, how they didn't dare stand up to them, how no one dared to speak out. But they say they chose to continue living here because what they have here that was everything that they possess in life.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

CHURCH: Welcome back, everyone. You are watching CNN NEWSROOM. I'm Rosemary Church.

BARNETT: And I'm Errol Barnett. Thanks so much for staying with us. Here are the top headlines right now. Eurozone leaders say they are making slow progress toward a Greek debt deal. Greece proposed new economic reforms over the weekend, which received cautious support from the country's international creditors. Greece must reach a deal for more bailout funds by June 30th or risk defaulting on its multi- billion dollar debts.

CHURCH: Police in upstate New York say they have an important new clue in their search for two escaped killers. A source said investigators have found DNA from the men at a cabin in the town of Owls Head. Richard Matt and David Sweat broke out of the Clinton Correctional Facility on June 6th.

BARNETT: South Carolina's governor says it's time to remove the confederate flag from state capitol. Nikki Haley and other prominent politicians say it is the right thing to do in the wake of the shooting massacre last week at a historic black church. The admitted killer who's been pictured holding the flag said he shot the church goers to spark a race war. Nine people were killed.

CHURCH: A leading ISIS operative has been killed by a U.S. drone strike in Iraq. The Pentagon says Ali Awni al-Harzi died in Mosul a week ago. He had been a battlefield commander in Iraq and worked throughout North Africa and the Middle East.

BARNETT: He was linked to the 2012 attack on the U.S. compound in Benghazi, Libya. A U.S. ambassador and three others were killed in that attack. The Pentagon says Al-Harzi's death reduces the militant's ability to recruit Jihadist from North Africa.

CHURCH: After two years of ISIS occupation, the Syrian town of Tal Abyad is now liberated. Kurdish fighters forced the militants out.

BARNETT: CNN was able to get into Tal Abyad. Awra Damon has an exclusive report from some of the places where ISIS delivered it brutal form of justice.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: We travelled to the town of Tal Abyad with the YPG, the Kurdish fighting force that is currently in control of the town. And in the brief hours that we were there we were still able to get a bit of an insight into just how chilling life under ISIS really was.

(voice-over): No one is around to tell us who was held here or what horrors transpired at the Tal Abyad prison. There is a stench of sewage, and on one solitary confinement cell's floor, splotches of red.

A scrap of paper, an idea about what is considered a crime under ISIS, in this case, taking God's name in vain, among the many draconian directives of ISIS rule. Another forbidden act, smoking.

(on camera): This is the first time in two years that cigarettes are being sold in the streets of Tal Abyad. This man was just saying, and this is the first shipment that he's brought in.

He's saying that there is a cage at the roundabout down the street that they would put people in for punishment for doing things like selling cigarettes.

(voice-over): We're taken to see it and told the story of a man who spent three days here for playing cards, also banned. The streets of Tal Abyad very clean. ISIS also ordered perpetrators of crime to pick up trash.

At one of the ISIS security offices the ominous black flag dominates every wall lest anyone forget who is in control here. And we find a handful of blank pads of official forms on an office shelf. Shuttered store front after store front spray painted red with a word meaning it was claimed as property as the Islamic State.

(on camera): There is a group of men back there who don't want to appear on camera because they still have relatives living in the ISIS stronghold of Raqqah, but they were talking about how retched life under their rule was, how they didn't dare stand up to them, how no one dared to speak out.

[03:35:01] But they say they chose to continue living here because what they have here, that was everything that they possess in life and trying to survive as a refugee would be just too difficult and all of them who we were speaking to then pointed to this roundabout. This was called the roundabout of death. It was here that ISIS carried out its executions.

(voice-over): The remnants of life under ISIS plagued this town where it seems that reality was worse than what most could ever imagine.

ISIS may have been driven out of Tal Abyad for now. But the fighting across Syria is still far from over and the future of so many still remains uncertain.

(END VIDEOTAPE)

CHURCH: And that was Arwa Damon reporting exclusively for us from Tal Abyad in Syria. Coming up in tomorrow's report, Arwa speaks with both young and old about the physical and psychological scars left behind by ISIS.

(BEGIN VIDEO CLIP)

DAMON: A certain unease emanates from adults, anger evident in their voices, their answers short and sharp. This man was forced to purchase from ISIS black clothing for his three girls. The three saying they were scared. Now they are just enjoying being outside without head scarves and they want to go back to school.

(END VIDEO CLIP)

CHURCH: Make sure to join us tomorrow for more of this exclusive reporting from inside Syria only here on CNN.

A woman and a child were killed in the attack on Afghanistan's parliament Monday. The video shows how large the explosion was from a car bomb outside the parliament building, 28 people were wounded.

Six Taliban fighters tried to storm inside, but security forces held them off and all six were killed in that fire fight. A Taliban spokesman says that parliament was targeted because the defense minister was to be introduced to lawmakers.

A highly anticipated U.N. report finds both Israeli and Palestinians may have committed war crimes during the Gaza war last year. The independent commission, which carried out the investigation, calls the loss of life in the conflict heart breaking. And it says that children on both sides were savagely affected. Oren Liebermann has more.

(BEGIN VIDEOTAPE)

OREN LIEBERMANN, CNN CORRESPONDENT: This U.N. report takes all sides involved in last summer's Gaza war to task, the Israelis, Hamas, and other Palestinian militant groups and the Palestinian Authority. The report from the U.N. Human Rights Council says Israel and Hamas violated international law during the 50-day Gaza war and may have committed war crimes.

Investigators found that Israel used precision-guided bombs to target residential buildings in at least six cases in Gaza and that Israel used high-explosive shells in dense urban areas, greatly increasing the risk to civilian lives and the final number of civilian casualties.

All of this, according to investigators, may have amounted to war crimes. More than 2,100 Palestinians died in the fighting, mostly civilian, and more than 70 Israelis died in the fighting, mostly soldiers.

The report also found that Hamas and other Palestinian militant groups indiscriminately fired rockets and mortars at civilians in Israel and used tunnels to increase the fear among the Israeli population living near Gaza, which according to the report may have constituted war crimes.

Finally, the report condemned the Palestinian Authority for investigations that are, quote, "Willfully inadequate despite allegations of violations of international humanitarian law."

The Israelis were quick to fire back at the report even issuing a pre-emptive report a week ago, which found that Israel followed international law in the way it conducted this war.

Now Emanuel Noction, a spokesman for the Ministry of Foreign Affairs said, quote, "It's regrettable that the report fails to recognize the profound difference between Israel's moral behavior during "Operation Protective Edge" and the terror organizations it confronted.

The report was commissioned by a notoriously biased institution given an obviously biased mandate. A Palestinian leadership praised the report. PLO Executive Committee member, Saeb Erekat, said, quote, "We urged the international community to recall that the only true path to peace lies in ending the Israeli occupation that began in 1967 and in ending crime and the impunity it continues to perpetrate against our people."

The report does not definitively say that either side committed war crimes instead investigators leave that to the International Criminal Court, which has a preliminary examination going on now. Oren Liebermann, CNN, Jerusalem.

CHURCH: An annual festival in China is sparking international outrage. Coming up for you, what these people don't want our cameras to see. You're watching CNN NEWSROOM.

(COMMERCIAL BREAK)

[03:40:05]

CHURCH: An annual dog meat festival in China has sparked an international outcry. While millions of Chinese are increasingly keeping dogs as pets others see them as a culinary delicacy. BARNETT: In some places, the dog meat tradition is very much live, CNN's Ana Coren reports on this year's festival, but we should warn you here the images you are about to see are disturbing.

(BEGIN VIDEOTAPE)

ANNA COREN, CNN CORRESPONDENT (voice-over): As a market in Southern China a woman hacks at chunks of meat on the table. Our cameraman moves in closer to find a pile of dead dogs freshly blow torched on the ground. Not pleased with the media attention, the locals lash out and continue to show their hostility.

For these residents -- killing dogs and selling the meat is a way of life that is celebrated annually at the Yulin Dog Meat Festival and this year it's as popular as ever. Eating dog meat is the same as eating chicken or beef, says this restaurant owner.

We've had to kill more dogs because more people have come. We sell what people want. While consuming dog meat is not common across all of China, in some provinces it's considered a delicacy. And the government has distant itself from the festival, it hasn't stopped customers from arriving in droves.

Eating dog is good for your health. It's better than eating pork, said this customer. Dog lovers go ahead and love your dogs, but you can't stop us from eating dogs. But some people are desperately trying.

Animal rights activists want to put a stop to what they say is a cruel event. This 65-year-old spent more than a thousand dollars to save the lives as 100 dogs, but as she well knows that is a drop in the ocean.

[03:45:12] At the moment, we don't have the ability to change people's habits. This is the government's responsibility, isn't it? If the government had animal protection laws the people would change. But there's no way the few of us who come here every year to buy dogs can change people's habits.

Joining the fight to save man's best friend is British comedian, Ricky Gervais, who has been promoting the international campaign to stop the festival which has received nearly 4 million signatures. It's misleading to calling it a dog meat festival. It should be called a dog torture festival because that's what it is.

And with these images of dogs crammed into cages awaiting a gruesome fate broadcast around the world, many hope the days of the Yulin Dog Meat Festival are numbered. Anna Coren, CNN, Hong Kong.

(END VIDEOTAPE)

BARNETT: Now at least 102 people are dead in Mumbai, India from toxic moonshine. Dozens of others are in the hospital right now and many of them in critical condition.

CHURCH: Police have arrested at least six people for their role in peddling the toxic brew. Illegal liquor is common in India and often contains toxic methanol.

BARNETT: Now record breaking heat is taking a heavy toll in Pakistan's largest city. The health ministry there says 323 people have died of heat-related causes in Karachi.

CHURCH: More than 2300 are being treated for heatstroke in the city's largest hospital. Power outages are keeping many people from cooling their homes or businesses. We want to get more on this. We have Pedram Javaheri joining us in the studio with details. It's a major concern. What can people do?

PEDRAM JAVAHERI, AMS METEOROLOGIST: Yes, very little with these kinds of conditions for these many people. You can't do much. Staying out of sun is the common sense, but children are more predisposed to this. They sweat less. They dehydrate more readily and their body creates more heat energy.

For someone five years or younger, it becomes a deadly scenario. So if you think the adults are feeling hot, your kids are in big trouble if you are feeling hot. Not a good setup across portions of Pakistan. It will take several weeks before the cooler temperatures arrive just like we saw in India.

But different story I want take you across South America because this is kind of unusual in what is occurring across the city of Santiago in Chile. Population here is 7 million people, a gorgeous city if you have seen it with the Andes a majestic site around this view.

But the valley, the basin traps some of the pollutants we have had, very little in the way of rainfall to go around over this region. In fact, you look at some of the climate data. The last time it rained in Santiago was back on the 24th of March. This is the wettest time of the year.

They saw no rain in the month of June. No rain in the month of May and that was less than a millimeter that fell back in March. So pretty impressive perspective there when you think about what's happening and also an impressive perspective out of Chicago.

This is Rigley Field, some ominous mammatus clouds. Thunderstorms spawned at least 13 tornados across portions of the Midwest in the past 24 hours. And then pretty impressive sight also coming from 400 kilometers above our planet's surface there.

Astronaut Scott Kelly shared with us the rare reds. You have the multihued purples and blues and violets and the reds happen with the upper altitude oxygen. Thanks for Rosemary Church for coming to the weather department and saying let's talk about this.

CHURCH: It is a gorgeous picture and he's been sending.

BARNETT: Rosemary's fee. All right, Pedram, thanks very much.

CHURCH: Well, a small plane registered to Oscar-winning composer, James Horner, has crashed killing the pilot. Now we do not know if Horner was flying the plane. The FAA says the crash happened Monday morning near Santa Barbara, California.

BARNETT: Horner won two academy awards for the movie "Titanic," but he is also been nominated ten times for "Brave Heart," "Avatar," and "Field of Dreams."

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CHURCH: Welcome back. I think this next story is a great idea. We have all been there behind a tractor trailer wanting to pass, but afraid you don't want to because you don't know what is in front of it.

CHURCH: Yes, for all good reasons, but take a look at the future. If Samsung has anything to say about it, the company is working on technology to make trucks see through by putting a wireless camera on the front and a video screen on the back. It's still in early prototype phase but it's interesting.

BARNETT: It could be a lifesaver so people don't make a risky decision to pass.

Now it is still not clear whether Apple's new streaming music service will feature Taylor Swift's latest album "1989" when it launches next week.

CHURCH: Yes, what is certain is that the 25-year-old superstar took on the tech giant and she won. CNN senior media correspondent, Brian Stelter, has the very latest.

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BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT (voice-over): Not any more. Apple changing the way it pays musicians once again proving the power of Taylor Swift. On the same day her latest single "Bad Blood" hit number one across the country, Swift prevailed in a standoff with the world's biggest company.

Swift was withholding that song and the rest of her "1989" album from Apple's just about to launch streaming service. The problem, royalty payments. Sunday morning, Swift took to Tumblr saying, she loves Apple, but not its plan for a three-month free trial period.

[03:55:09] Apple Music, she says, will not be paying writers, producers or artists for those three months. She called it shocking, disappointing.

But said, "It's not too late to change this policy, we don't ask you for free iPhones, please don't ask us to provide with our music for no compensations." Taylor's fans very swiftly shared her opinion tens of thousands of times. A huge headache for Apple --

REGGIE UGWU, "BUZZFEED NEWS" DEPUTY MUSIC EDITOR: Taylor is doing this for the music industry at large. This is a big deal, Apple Music coming into streaming, and she wants to make sure that all artists are going to be compensated fairly. STELTER: Behind the scenes, Apple scrambled to respond. Company executives got ahold of Swift in Amsterdam, her latest world tour stop. Soon after she got off stage, Apple said it was changing the policy.

A key lieutenant of Apple CEO Tim Cook tweeted, "Apple Music will pay artists for streaming even during the customers' free trial period. We hear you, Taylor Swift, and indie artists. Love Apple."

Swift was elated. They listened to us, she wrote. For Apple a bad PR moment now becoming free promotion for its new service. Meanwhile, competitor, Spotify is still missing all of her songs seven months into a similar dispute over compensation. It's not keeping the pop star down. Brian Stelter, CNN Money, New York.

(END VIDEOTAPE)

CHURCH: And we have this information just in to CNN. Mother Theresa's successor at Missionaries of Charity has died. She was the superior general of the missionaries for 12 years. Reports say she was suffering from a heart condition.

CHURCH: She joined the order in 1976 and took over when Mother Theresa died in 1997. She was 81 years old.

BARNETT: You have been watching CNN NEWSROOM. I'm Errol Barnett.

CHURCH: And I'm Rosemary Church. The news continues after the break.

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