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EARLY START

Washington Navy Yard Terror Alert; Prison Escape Investigation; One Suspect Believed Involved In Two Attacks; Republicans Blast Trumps Immigrant Stance; Reelz Picks Up Miss USA Pageant; Baltimore Police Investigating Sign Inside Van; Unpaid Interns Fight For A Paycheck. Aired 5:30-6a ET

Aired July 3, 2015 - 05:30   ET

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


(BEGIN VIDEO CLIP)

JOHN MILLER, NYPD DEPUTY COMMISSIONER: -- go to the fireworks, bring your family. Have a great time. You will be at the most well secured event in the city.

(END VIDEO CLIP)

JOHN BERMAN, CNN ANCHOR: In Washington, tens of thousands are expected to squeeze through nine access points on the National Mall for the fireworks show there. The tight security in Washington, D.C. and New York area got a dry run with two false alarms.

A bomb threat at a mosque in Paterson, New Jersey, that turned out to be a crank call and a report of gunfire at Washington's Navy Yard. For the latest on that, let's turn to justice correspondent, Pamela Brown.

PAMELA BROWN, CNN JUSTICE CORRESPONDENT: Well, John and Christine, it is clear that law enforcement is on edge. The overwhelming response from law enforcement at the navy yard came in part, of course, because of the eerie similarity to the naval yard shooting two years ago.

But it's also a result of officials being on heightened alert leading into the 4th of July weekend given the significant terror concerns. The events there unfolded with a 7:30 a.m. 911 call from the woman inside the navy yard reporting possible shots fired.

After that, the entire complex was put on lockdown. Hundreds of law enforcement personnel converged on the area and helicopters hovered above. The White House even cancelled all tours.

Nearly three hours later after every room in the building was searched, the all clear was given by police. Adding to the fear at that time, police in New Jersey were investing a bomb threat at a mosque.

That turned out to be a hoax, but with the increased chatter from ISIS supporters leading into the weekend, law enforcement clearly doesn't want to take any chances -- John and Christine.

BERMAN: Security concerns overnight at a mall in Fayetteville, North Carolina. Customers called police to report a man carrying a Kevlar vest and carrying an AR-15 assault rifle. The mall was evacuated and police stopped the man within minutes. No shots were fired. Officials say charges against the suspect are pending. They have not disclosed the name or any kind of possible (inaudible).

CHRISTINE ROMANS, CNN ANCHOR: New details this morning about the New York prison break. A report in the "Buffalo News" says Richard Matt wrote a letter to his daughter just before he and David Sweat staged their brazen escape from the Clinton Correctional Facility.

According to law enforcement officials, Matt said in the letter quote, "I always promised I would see you on the outside," adding, "I'm a man of my word."

His daughter got the letter three days after he had escaped. Matt was killed by police. Sweat was captured and remains in the hospital. We have more on the investigation now from CNN's Jason Carroll.

JASON CARROLL, CNN CORRESPONDENT: John and Christine, federal authorities releasing a bit more information about those final moments with Richard Matt and that border patrol officer. That officer telling Matt to put his hands up, he ended up firing on that officer only after Richard Matt failed to put his hands up and instead pointed a .20-gauge shotgun at that officer.

He picked up that shotgun along with that liquor that he found while he was on the run. So as violent as those last moments were they could have been much, much worse if not for the quick thinking of that border patrol officer.

Also new information coming to us about that alleged murder plot against Lyle Mitchell, Joyce Mitchell's husband. As you know, Joyce Mitchell denied she had anything to do at all with that murder plot.

David Sweat says that she did. Well, Lyle Mitchell, Joyce Mitchell's husband weighing in through his attorney telling CNN yesterday afternoon, quote, "Lyle only knows what Joyce has told him. That was that she did not want to hurt Lyle."

Again, Joyce Mitchell telling investigators she had nothing to do with the murder plot and also telling her husband she did not want him hurt or did not anyone to go through with it -- John, Christine.

BERMAN: All right, Jason Carroll, thanks so much.

Breaking overnight in Tunisia, police arrested eight people suspected of involvement in the terror attack at the beach resort in Sousse that happened one week ago. In just hours, the 38 people killed in that attack will be remembered with a moment of silence across the United Kingdom, all but eight of those killed were British.

U.S. officials confirm that two of Tunisia's most wanted terrorists were killed last month in coalition air strikes. One was a top lieutenant of Osama Bin Laden and the other a senior ISIS leader. For the latest in all of these developments, let's bring in Phil Black live in Tunisia this morning. Good morning, Phil.

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Good morning, john. Tunisia authorities say they are still looking for people they believe acted as accomplices on the beach of Sousse one week ago. They released the image of a specific suspect they are looking for.

A 29-year-old man who they believe played a part not only in that beach attack, but also played a role in the attack that took place here in the capital of Tunis back in march at the Bardo Museum, another attack that also targeted western tourists and in that case killed 22 people.

The theory that police are pursuing is that those two events are linked and the gunmen that took part in both attacks trained together across the border in neighboring Libya, that increasingly lawless country where Islamist groups like ISIS are gaining stronger footholds day by day.

Meanwhile, today is very much about remembrance. Across the United Kingdom, people will stop at midday for a moment of silence to think about the 30 victims from that country.

[05:35:08] It is the highest death toll from that terror attack against British citizens since the bombings in London back in July of 2005.

There will be another ceremony. A moment of reflection on the sands at Sousse near where one week ago that man walked up to a group of tourists lying in the sand and opened fire massacring 38 people in all in an attack that lasted less than an hour that had such devastating effect -- John.

BERMAN: The big impact perhaps in the fight against terror in Britain as well. Phil Black for us. Thanks so much, Phil.

ROMANS: All right, let's get an early start on your money this Friday morning. The U.S. stock market and U.S. government offices are closed today for the 4th of July holiday. The short week was bumpy on Wall Street.

The jobs report yesterday showed the lowest unemployment rate in seven years. Back to pre-crisis unemployment, but stocks fell. The Dow dropped 28 points. Healthy jobs growth signals a fed interest rate hike is coming.

When is not clear though. Wages are not growing very strongly so that could put things a bit, but that's what people are struggling with. Economists are looking at this morning.

In Europe today, stocks are lower. There is a lot of uncertainty about Greece's debt and its future in the European Union. Greece's situation is so dire. It even has its own crowd funding movement.

You know, it's bad when they are crowd funding for you. Indigogo, that fund has raised more than $1.7 million in five days. OK, 1.7 million is not very much, but it's long way from the $1.8 billion Greece owes the IMF. Even actress, Emma Watson, though has chipped in. She tweeted I've donated and included a link to the fund.

BERMAN: For friends of Harry Potter, that is a joke for you.

A new candidate in the presidential race, a Democrat this time, former Virginia Senator Jim Webb. In a statement, Webb acknowledges his chances of winning are remote, but says the voice of an outsider is sorely needed in this race.

He said, quote, "I understand the odds, particularly in today's political where fair debate is so often drowned out by huge sums of money. Let's clean out the manure-filled stables of a political system that has become characterized by greed.

ROMANS: That paints a picture.

BERMAN: It does.

ROMANS: A vivid picture.

BERMAN: That's scratch-and-sniff picture.

The Democrat and Republican candidates are busy with holiday campaigning. Bernie Sanders, Martin O'Malley, Bobby Jindal, they will be in Iowa today. Chris Christie, Rick Perry, and Hillary Clinton, they are stumping in New Hampshire.

What about the current White House occupant? He cannot run for reelection, but he kind of sounded like he was into the notion. He was in Wisconsin savoring some political success he has had lately and he took a swipe at the crowd of Republican field.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: We have some healthy competition in the Democratic Party, but I've lost count how many Republicans are running. They will have enough for an actual "Hunger Games." That is an interesting bunch.

(END VIDEO CLIP)

ROMANS: An interesting bunch.

BERMAN: An interesting bunch. Donald Trump, part of that bunch running for president. He has said some things that are very controversial. Many are asking what do the other Republican candidates think about it, will they stand up to Donald Trump on his controversial remarks about immigration? We will tell you what they are saying next.

(COMMERCIAL BREAK)

[05:41:58]

BERMAN: He is one serious challenge for Republican leaders and also the Republican presidential candidates. What to do about Donald Trump. That is the man running second place right now in nearly all key polling both nationally and in Iowa and New Hampshire.

So while the party is trying to build bridges to Latino voters, Trump called Mexican immigrants criminals and rapists as he entered the Republican race. The party chairman calls Trump's remarks not helpful and his opponents are now being called on to respond as well. Let's get the latest from CNN's Athena Jones.

ATHENA JONES, CNN CORRESPONDENT: Good morning. Donald Trump is rising in recent pole polls, but the firestorm over his offensive remarks about Mexican immigrants is coming as the Republican Party is trying to make in-roads with Hispanic voters so they can win back the White House in 2016. So now many of Trump's GOP rivals are trying to make it clear that they don't agree with him. Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I don't think Donald Trump's remarks reflect the Republican Party.

GOVERNOR CHRIS CHRISTIE (R), PRESIDENTIAL CANDIDATE: The comments were inappropriate. They have no place in the race.

UNIDENTIFIED MALE: When you label a group of people as rapists and drug dealers, it is more about you than it is them.

(END VIDEO CLIP)

JONES: And Trump's remarks are costing him some lucrative business deals with Univision, NBC Universal and Macy's. Now Serta is putting to rest its line of Trump home mattresses. That's a luxury line of mattresses.

So Trump may have the support of a rising proportion of Republican primary voters, but more and more others are showing they don't want to touch him with a 10-foot pole.

In fact, New York City Mayor Bill De Blasio has said he is going to review the city's contracts with Trump focusing in part on a golf course in the Bronx -- John, Christine.

ROMANS: Athena Jones, thank you, Athena. Trump's Miss USA pageant has found a new home. After NBC and Univision dropped the pageant, it may be available streaming online, but the small independent cable channel, Reelz, has announced it will pick up the July 12th pageant broadcast.

Not even Reelz is standing behind Trump. Overnight on CNN, network CEO's Stan Hubbard backed away from Trump's immigration commnets while embracing the pageant's tradition.

(BEGIN VIDEO CLIP)

STAN HUBBARD, CEO, REELZ: I think those kind of comments are completely ridiculous. I think most of America thinks the same way. I also think that when you are a giant corporation, you have a lot of entanglements that an independent network doesn't have.

An independent network like Reelz was able to look at this pageant, look at these contestants, look at that community, look at that community, look at this American tradition and get our arms around the good parts of it and bring it to television on July 12th.

The agreement that we made was with the pageant officials, not with the Trump organization.

(END VIDEO CLIP)

ROMANS: All the previously announced hosts and performers have backed out of the pageant. So far Reelz has not announced replacements.

Concerning and unacceptable, that is what Baltimore police tells CNN this morning about a sign found inside one of the department's inmate transport vans. Here is the sign. It reads, "Enjoy your ride because we sure will."

Department officials tell our affiliate, WBAL, the photo is real. Inspections are underway now on all department-owned vehicles. This comes in the wake of the Freddie Gray's death in April. Gray died after suffering a severe spinal cord injury. He was being transported in a similar van. Six Baltimore police officers have been charged in connection with his death.

Investigators say the cause of that fire that destroyed the Mt. Zion AME Church in Greeleyville, South Carolina was natural, not criminal. In fact, they believe a lightning strike sparked Tuesday night's blaze.

The Justice Department says it is still investigating several church fires that have broken out across five states over the past two weeks. Federal investigators say so far they have found no link between those fires.

Fireworks on the freeway, a Chevrolet van packed with fireworks exploded near the Nevada border Thursday afternoon. No one was injured, but the van engulfed in flames with sparks flying stalled traffic on the main freeway between Los Angeles and Las Vegas for hours. The driver fled and is still at large.

Let's take a look at what is coming up on "NEW DAY" and Michaela Pereira joins us now. Good morning, Michaela.

MICHAELA PEREIRA, CNN ANCHOR, "NEW DAY": Nothing near as explosive as that, I hope, certainly over the weekend. Christine, we are going to take a very close look at these terror concerns ahead of the 4th of July holiday.

Another lurking concern, though, for the weekend is at the beach. Shark attacks are up all along the Carolina coast. Why is this happening? What can you do to keep yourself and family safe? We will speak with one of the world's foremost expert on sharks and get the real deal from him. Obviously something you have been talking about, Christine, the

Donald Trump saga taking quite an interesting turn as you mentioned. There is a new broadcast home for the Miss USA pageant. However, calls are growing louder for the Donald to be shown the door.

Should the pageant move forward with him? Can it move forward without him? We will have one of the contestants from the 2012 Miss USA pageant on our show. We will talk to her and get her thoughts on all of this, very interesting perspective.

ROMANS: Yes, very interesting. It is so interesting too, Michaela, because when you think about the Republican response to Donald Trump. On the one hand, many of them don't want to elevate him to the level of quote/unquote, "real candidate" by responding.

PEREIRA: But at the same time, they cannot let it go unchecked.

ROMANS: Look, he is running second in most of the polls.

PEREIRA: Very interesting.

ROMANS: It really is interesting.

PEREIRA: Will that last? That's the question.

ROMANS: Yes, all right, thanks, Michaela. I can't wait to watch.

Millions in the path of severe storms this holiday weekend, heavy rain and flooding and tornadoes touching down Thursday. What you need to know for the day next.

(COMMERCIAL BREAK)

[05:51:15]

ROMANS: Well, the weather may put a damper on your 4th of July celebrations. Millions of you bracing for severe storms from the Carolina to the mid-south and southern plains. Earlier, the same storm system spawned a tornado in Nashville. The Thursday night twister uprooted trees and crushed cars and homes. Thankfully no one was hurt.

In Eastern Missouri, this was the scene after strong storms and torrential rain swept through the region. One woman was killed after her car was swept off the road by a flooding creek. Meantime, two mobile home parks in Jefferson County were evacuated as a precaution.

More storms headed for the south. Let's get to meteorologist, Karen Maginnis.

KAREN MAGINNIS, AMS METEOROLOGIST: John and Christine, it does look like for Missouri a little bit of a drying trend taking place over the next several days, but we look at this forecast radar and it still signaling some pretty good thunderstorm ramping up again across the Ozarks and Tennessee Valley all the way over into the Carolinas. Some of those thunderstorms strong to severe potential, about

35 million people at risk for damaging winds and large hail and the potential for an isolated tornado, all the way from Oklahoma City to Memphis, Nashville, Birmingham, Atlanta to Columbia, South Carolina and Charlotte.

High temperatures still well into the 90s all across the west, it is tender and dry here. That is why we have seen so many reports of fires across the region. In the Deep South, the searing heat is not here, but it is muggy.

If you are traveling to Florida, temperatures in the 90s and for the July 4th holiday, thunderstorms in the south east, isolated across the west. It's going to be pretty quiet in the great lakes -- John and Christine, back to you.

ROMANS: All right, Karen Maginnis, thank you, Karen. Have a nice weekend. Hip hop mogul, Sean Diddy Combs will not face felony charges in the UCLA assault case. The Los Angeles district attorney declining to file felony charges against Combs.

He was arrested last month after an altercation with one of his son's football coaches. The DA says it will turn the case over to the L.A. City Attorney's Office, which could file lesser misdeamenor charges.

Are you planning to binge watch on Netflix this weekend? Let me tell you where it might cost you a little more in EARLY START on your money next.

(COMMERCIAL BREAK)

[05:56:59]

ROMANS: All right, let's get an EARLY START on your money this Friday morning. U.S. stock market and government offices closed today for the 4th of July holiday.

In Europe today, stocks are lower. Uncertainty about Greece's debt and future in the European Union at play there. The Greek stock exchange and Greek banks are closed for a fifth day.

Bad news for some unpaid interns, two years ago, a district court ruled in favor of three former unpaid interns at Fox Search Life. An appeals court is now ordering the lower court to reconsider. The former interns worked on the site of the movie "Black Swan" and they alleged they were given the same duties as full-time employees.

They were 10-hour days unpaid, setting up office furniture, running errands, helping with the production. The appeals court says the question here for the court is who gets the most benefit, Fox or the interns? Unpaid interns have won two previous cases against media companies. Some media companies moving against the practice of unpaid internships altogether because of the court drama.

Watching Netflix just got more expensive in Chicago. Residents will pay an extra 9 percent tax to use streaming services like Netflix and Spotify. The city amended the tax code to include streaming movies, music, television and online gaming. Chicago expects to generate an extra $12 million each year because of the new law.

All right, 4th of July terror threats creating concern and scares across the country. False alarms as well. "NEW DAY" picks up that story now.

(BEGIN VIDEOTAPE)

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": Federal authorities warning of possible terror threats tied to the July 4th holiday weekend.

UNIDENTIFIED MALE: We are concerned because there is a group of sympathizers in the country.

UNIDENTIFIED MALE: They are activated in their own minds to go do something. That is so much more difficult.

UNIDENTIFIED FEMALE: Reported of shots fired inside Washington's naval yard.

UNIDENTIFIED FEMALE: There is no evidence of a shooter.

UNIDENTIFIED MALE: This was the normal reaction that they had trained and prepared for.

UNIDENTIFIED MALE: I hate to critique, but it looked like a bunch of kids running toward a soccer ball in a 5-year-old game.

(END VIDEOTAPE)

ALISYN CAMEROTA, CNN ANCHOR: Good morning, everyone. It's Friday. Welcome to your NEW DAY. It is July 3rd, 6:00 in the east. Chris Cuomo is off. John Berman joins us today. Great to have you with us.

So up first, law enforcement is on high alert this morning amid concerns of terror attacks over the holiday weekend. The Department of Homeland Security and FBI alerting authorities across the country to be extra vigilant.

PEREIRA: Terror concerns are much higher this year as terrorists have taken to social media urging supporters to carry out attacks. We saw one sign of the security jitters in yesterday's scare at the Washington navy yard. Hundreds of first responders racing to that scene.

We begin with coverage with CNN's Boris Sanchez. He is live at New York's Penn Station set to be very busy this weekend, I'm sure, Boris.

BORIS SANCHEZ, CNN CORRESPONDENT: Good morning, Michaela. Millions of Americans are set to travel this holiday weekend. So law enforcement is paying extra attention at places like New York's Penn Station to make sure everyone has a safe and secure 4th of July. (BEGIN VIDEOTAPE)

SENATOR JAMES LANKFORD (R), HOMELAND SECURITY COMMITTEE: They are reaching out on social media telling people it's the holiday, we ought to kill people.

SANCHEZ: Police and FBI on heightened alert as nearly 42 million people will travel this holiday weekend.