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EARLY START

Greece Financial Crisis: Finance Minister Quits; Iran Nuclear Deal: "Hard Choices" Remain; USA Wins Women's World Cup. Aired 4-4:30a ET

Aired July 6, 2015 - 04:00   ET

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


[04:00:13] JOHN BERMAN, CNN ANCHOR: All right. Breaking news this morning: potential chaos in the world markets. The Greeks vote no on a bailout and a short time ago, the finance minister, he gets up and quit his job.

So, what on earth happens now? What happens to U.S. stocks and your 401(k)? We are live.

CHRISTINE ROMANS, CNN ANCHOR: Iran and the U.S. closer than ever before to reaching a nuclear agreement. But many hard choices still ahead, one day left until the deadline. We are live with the very latest.

BERMAN: And the most stunning soccer in U.S. history ever. The U.S. women -- they are champions of the world. And, yes, my friends, it was --

ROMANS: You stay stunning. I say awesome.

BERMAN: It was amazing. I have never seen anything like it. I have never seen anything like the energy, the emotion, the execution, in those first 16 minutes.

ROMANS: If we can match the energy, emotion, and execution in the next two hours, it would be a miracle.

BERMAN: That's right. It would be 17-0 by 6:00.

ROMANS: We are tired people.

BERMAN: Good morning, everyone. Welcome to EARLY START. I'm John Berman.

ROMANS: I'm Christine Romans. It is Monday, July 6th. It is 4:00 a.m. in the East.

Let's begin this morning with breaking news in Greece. The Greek finance minister quits after the Greek people tell Europe, take your bailout and shove it. A resounding no vote in Sunday's referendum on the latest European bailout offer. No, no, no, the Greeks tell Europe. The finance minister writing in a blog post that European creditors

wanted him gone. He said he is quitting his job to help the prime minister reach a new bailout deal. He says, John, I love this, "I shall wear the creditors' loathing with pride." Big smile on his face as he quits, gets on his motorcycle and leaves.

BERMAN: Smiling with 20 percent unemployment, 25 percent contraction in the economy.

ROMANS: And potentially a world market selloff, because of all those moves.

Now, the market's around the world sinking in response to Greek voters' rejection of that bailout deal. European stocks sharply lower right now. So, are U.S. futures. The euro plunging against the dollar.

The no vote puts Greece's future further in question, deepening the divide between Greece and Europe, its European creditors.

Europe wanted more reforms from Greece in exchange for its bailout, but Greece voted they've have enough of those European reforms, enough of austerity. That's pushing the country closer to bankruptcy and a potential exit from the Eurozone. Never has it been a probability for Greece having to leave the euro, print its own currency, get out of the euro.

Greece needs more money desperately to pay pensions and wages. It needs to reopen its banks. Its banks have been shut for a week. That further sinks the economy.

The big question now, how will European leaders act?

Senior officials are meeting today, ahead of a big summit tomorrow. Now, overnight, thousands of Greeks celebrated the no vote as a powerful rejection of the austerity measures and crippling cuts to the social safety net.

But they may be waking up with more than one hangover. They face the prospect of an economy in chaos, the possibility of an extension to the Greek bank closures, more restrictions on daily withdrawals from -- can you imagine living in a modern economy and not being able to get any money from your bank?

I mean, that is how serious this is. Maybe even you know, last week, they could get $67 a day, 60 euros a day. That was the limit. Maybe there'll be even further restrictions. And shortages that include basic food, medicine and hospitals.

For the very latest, let's get straight to CNN's Isa Soares, live for us in Athens.

And, Isa, very clearly, what is it that the Greek citizens don't want that the Europeans had in that bailout offer? Is it higher taxes, lower paychecks for people who get -- rely on the government for their wages and salaries? What is it in particular that the Greek people said we don't want this?

ISA SOARES, CNN INTERNATIONAL CORRESPONDENT: Good morning, Christine. Good morning, John.

I think they are being very clear here. The whole week I've been here, they've been saying, no more austerity. And very clear, they don't want anymore cuts, no more pension cuts, Christine, no more tax -- raises to taxes. And I think that is the concern that many people have been making.

Pensions have been cut dramatically here in the last five years. So, what they are saying is no more. We cannot survive with more pension cuts, specifically because 50 percent of families have households here depend on pensions as their only source of income.

So, while this whole thing is resounding no is a victory as Prime Minister Alexis Tsipras puts it for the no campaign, a victory for democracy, the reality will set now for the hard work is only just beginning. We know right this hour, the Prime Minister Alexis Tsipras is meeting with its opposition party at the presidential palace. He is gathering the opposition leaders to try and join them and try to get the support behind his party, behind him when it comes to negotiating with Europe. He needs Greece to be united in this front.

[04:05:00] But, critically, the moment now is, where does this take Greece? And it lies very importantly on the ECB. The European Central Bank, Christine, because they are meeting today. And they will decide whether they will increase the liquidity into Greece or not. Already we know 60 euro limit, but will that be reduced to euro if ECB does not prop up Greek banks.

ROMANS: So, did you say 50 percent of households in Greece, their only income is a check from the government?

SOARES: Correct. I said 50 percent of households in Greece depend on pensions as the only source of income. And I've met some of those families, where they are counting every single euro to buy medicine, to put food on the table. These are critical times and they said, we have seen our pensions cut, we can't possibly depend on this anymore.

We have adults moving in with the elderly, their parents, because they can longer -- they've lost their jobs and cannot afford to pay for goods or pay for any sort of education for their children or food. That is the critical part.

I've met one family, Christine, where the father lost his job. She had -- the family has three children. None of the boys could get a job. And she was the only one working.

And she was working. I said to her, what are you doing in terms of money? Does it go far enough? She goes, no, I have to decide between putting food on the table and paying taxes. And to be completely honest, I'm not going to pay taxes otherwise my family will starve.

ROMANS: What about the arguments of other southern European countries have taken very tough medicine and their countries are starting to grow again. Is it fair the Greece could have a write-down of its debt? Which is what the Greek government wants, they want to be able to get rid of some of this debt.

Is it fair for the Greek government to be able to write down the debt for its country, arguably, the most indebted nation in Europe, when other countries have taken tough austerity and sort of taken the medicine?

SOARES: Yes, it's really hard. I think, you know, the other peripheral countries in Europe who have had -- who've taken that bitter pill, we're talking about Spain, we're talking about Portugal, we are talking about Ireland, they all had bailouts, and including Cyprus, too. They all have to take tough austerity measures and they've been able to come out of it. Portugal is growing again thanks to the exports.

But, you know, Greece is really suffering because its economy depends on tourism, Christine.

ROMANS: Right.

SOARES: That its main source of income. And that is it. It needs to think of other ways to create money.

ROMANS: Right.

SOARES: The summer holiday, this is how it makes its money. Whereas other peripheral countries have done very well. They are not happy to the fact that Greece, if they get debt relief, that there will be some tensions within the European Union about the treatment the Greece does get if they get some sort of debt relief compared to everyone else who had to suck it up, to be completely honest.

ROMANS: All right. Isa Soares, thanks for that. Again, world market, you could see a huge sell off around the world this morning, because it's just the question of the contagion.

You know, John, it was 1997 when a little tiny currency called the Thai baht was devalued. Everybody thought, oh, that's just like a little blip. No, there was contagion all around Asia and then around the world, because a little tiny economy had a really -- a big currency problem that should have been contained. That's why people are concerned about what happens to Greece, even though the U.S. exposure to Greece is minimal, what happens to the financial system --

BERMAN: The U.S. exposure to the euro is huge, though.

ROAMNS: That's right.

BERMAN: Happening now, countdown to the deadline right now is tomorrow. The Iranian foreign minister, Javad Zarif, said the two sides are closer than ever to a deal, but Secretary of State John Kerry has made clear in his words, we are not there yet.

(BEGIN VIDEO CLIP) JOHN KERRY, SECRETARY OF STATE: I want to be absolutely clear with everybody: we are not yet where we need to be on several of the most difficult issues. And the truth is that while I completely agree with Foreign Minister Zarif, that we have never been closer, at this point, this negotiation could go either way.

(END VIDEO CLIP)

BERMAN: The secretary says the U.S. is still willing to walk away from the talks if it encounters what he calls absolute intransigence. A source familiar with the talks tells CNN there is still a lot of work to do.

CNN's Atika Shubert is live at the talks in Vienna.

Good morning, Atika. Where do we stand right now?

ATIKA SHUBERT, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, John.

Well, the pressure is on. There are back-to-back meetings. Foreign ministers, many of them are already here, some of them arriving this morning, and they are clearly working around the clock to try and make the deadline. While at the same time, deputies from the IAEA are in Iran hoping to push forward.

"Will they make the deadline?" is the key question. And it's really more important for the U.S., because they need to get in an agreement to Congress before July 9th, so they have 30 days to go over it before that sort of summer recess. Otherwise, we're looking at 60 days before you get approval. And the Obama administration doesn't want it to take up as much time.

[04:10:00] Having said all that, Secretary Kerry has faced some criticism for sort of rushing the deal, particularly from Senator Bob Corker of the Foreign Relations Committee. But Kerry yesterday made it very clear. He said, we will not shave away at the margins just to get an agreement. The U.S. is still willing to walk away if they feel that they're not going to get the deal that they need, John.

BERMAN: A lot more in the next 24 hours.

Atika Shubert, thanks so much.

ROMANS: All right. The Obama administration focusing on ISIS today. President Obama set to be brief on the fight against the Islamic militants by Defense Secretary Ash Carter and the Joint Chiefs of Staff. Carter is also meeting with the French defense minister this morning to talk about the battle against ISIS.

At least 23 ISIS militants were killed over the weekend by coalition air strikes. That's according to a human rights group based in London. U.S. officials say the attacks on the ISIS stronghold of Raqqa were part of the most sustained set of airstrikes to date.

BERMAN: All right. New this morning, political plays and political fallout for Donald Trump. Fresh round of recriminations for his controversial comments about Mexican immigrants. Trump is standing by his words and, in fact, issuing new statements that are open for debate. His Republican rivals in the race are now taking notice.

CNN's Sunlen Serfaty has more from the White House.

(BEGIN VIDEOTAPE)

SUNLEN SERFATY, CNN NATIONAL CORRESPONDENT: Good morning, John and Christine.

Well, there continues to be fallout from Donald Trump's controversial comments when he said that Mexican immigrants are rapists. And that continues to be a controversy which is sucking up much of the oxygen on the campaign trail.

We have seen recently this past weekend, many of the Republican candidates seeming to be a little more aware of that and not only distancing themselves from the Trump's comments, but also trying to push back a little more aggressively, indicating that this is hurting the Republican Party. We saw Jeb Bush over the weekend in New Hampshire, saying that he is personally offended by Trump's comments, given that his wife was born in Mexico and calling it rude language.

Other candidates ramping up criticism of Trump as well.

RICK PERRY (R), PRESIDENTIAL CANDIDATE: Donald Trump does not represent the Republican Party. I was offended by his remarks. Listen, Hispanics in America and Hispanics in Texas, from the Alamo to Afghanistan, have been extraordinary people, citizens of our country and of our state. They have served nobly. And to paint with that broad a brush, that Donald Trump did, is -- I mean, he's going to have to defend those remarks.

MIKE HUCKABEE (R), PRESIDENTIAL CANDIDATE: Honestly, Donald Trump needs no help from Mike Huckabee to get publicity. He's doing a really good job at that.

SERFATY: Meanwhile, Donald Trump isn't backing down. In fact, he seems to be doubling down, continuing to defend his remarks.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I love the Mexican people. They are fantastic, and everybody knows that.

But in terms of the border, it's a disgrace. Either we have a border, or we don't have a country. You know, you can't have a country without borders.

And people are coming in. And some of those people -- and I read it even yesterday, there was a huge article about the tremendous crime that's taking place, it's like a crime wave. It's one of the most dangerous places on earth. I bring that up and, all of a sudden, I'm a bad person.

SERFATY: All this back and forth comes at a time when many Republicans are eager to reach out to Hispanic voters, bring them into their party. That's likely a big reason why we're seeing many of these candidates start to speak out much more forcefully, noting that it could be damage to their party's brand -- John and Christine.

(END VIDEOTAPE)

BERMAN: All right. Sunlen Serfaty at the White House.

Republican candidate, former New York Governor George Pataki, in New Hampshire today, he will host an immigration policy roundtable with reporters in Manchester and will address a letter that he sent Friday, the Republican candidates asking them to denounce Donald Trump because of those harsh comments about Mexican immigrants.

On to something undeniably good.

ROMANS: Awesome.

BERMAN: Victory for the United States. That was just -- oh, no. We showed you a goal from Japan. There were five from the United States, though. We want to show you right there, including yes, no, another one for Japan. We showed you both goals for Japan.

You have to trust me when I say United States scored five of them. The United States beat Japan -- finally. You know, we made it look close.

The United States went up 4-0 in 16 minutes. Carli Lloyd had the best game I have ever seen. She had a hat trick in 16 minutes.

After the match, the Team USA coach talked about the star midfielder.

(BEGIN VIDEO CLIOP)

JILL ELLIS, TEAM USA COACH: Players get hot and you can ride the players that are hot. And, you know, for Carli, you know, the attacking part of her game, she was doing tremendously well. So, it was a natural decision for me to push her into a higher position and play here there. And, you know -- I mean, she relishes that role. I still make her defend, but she relishes that role. And, you know, I'm just incredibly proud of all of the players.

(END VIDEO CLIP)

ROMANS: Three goals, hat trick --

BERMAN: It's never happened. A hat trick in a World Cup final has never happened. She had within 16 minutes. You know what? She could have had five goals. You can see here, you know, just a huge number of U.S. fans in Vancouver cheering with the USA chants.

[04:15:00] Team USA will go to the White House. They will meet with the president. All of this, as I said, is simply fantastic.

You know, one thing we're not showing you here, Carli Lloyd scored a goal from the midfield line, scored a goal from the midfield line.

If you stay with us in the next half hour, there's a chance we might have that for you. Stunning to see.

ROMANS: I mean, so one of my little kids is like really into "Star Wars." He's like, mom, Han Solo, Hope Solo. The force was with them.

BERMAN: The force was with them, indeed.

ROMANS: The force was with them.

All right. Fifteen minutes past the hour. You know, stunning levels of violence in Chicago this weekend. What the city's top cop says is to blame.

BERMAN: Plus, a killer's confession reigniting the immigration debate. We have breaking developments to tell you about overnight.

(COMMERCIAL BREAK)

ROMANS: The holiday weekend marked by another round of deadly violence in Chicago. Police report 33 shootings in Chicago. More than three dozen people injured, seven people killed. One victim is a 7-year-old little boy, 7 years old Amari brown. He was fatally shot celebrating the Fourth with his family. At a prayer vigil Sunday, family and friends spoke about this just senseless tragedy.

(BEGIN VIDEO CLIP)

MICHAEL SINGLETON, FAMILY FRIEND: You all will be back out here next week on another corner filming the same thing from somebody else saying exactly what I'm saying. So, I'm tired of doing news conferences and tired of listening to them and tired of talking about them. Until we make a better decision as a community and as a city, this is all that's going to happen.

(END VIDEO CLIP)

ROMANS: The police say that the father is a known gang leader with a lengthy rap sheet. He was the intended target of the shooting. They say the father of Amari Brown is not cooperating into the investigation of his son's death.

BERMAN: Breaking overnight, the undocumented immigrant arrested in apparently random shooting of a woman in San Francisco now admits he did it on camera to CNN affiliate KGO.

(BEGIN VIDEO CLIP)

[04:20:00] REPORTER: Did you shoot Kate Steinle, the lady who was down on Pier 14?

FRANCISCO LOPEZ-SANCHEZ, MURDER SUSPECT: Yes.

REPORTER: You did shoot her?

LOPEZ-SANCHEZ: Uh-huh.

(END VIDEO CLIP) BERMAN: The accused gunman claims the shooting of Kate Steinle at a public pier was an accident, but the shooting has been capitalized on by Donald Trump and it adds new fuel to the immigration debate. The suspect had seven felony convictions. He had deported five times and repeatedly come back to the United States.

CNN's Boris Sanchez has the latest.

(BEGIN VIDEOTAPE)

BORIS SANCHEZ, CNN CORRESPONDENT: John and Christine, this appears to be a random senseless murder. And when immigration officials wanted the man detained on previous arrest, he was let go, leading many to wonder if this whole thing could have been prevented.

The shooting happened Wednesday night on a busy pier in San Francisco. Kate Steinle had been walking with her father when a man ran up and shot her. Police say the suspect didn't say anything to Kate before taking off.

Juan Francisco Lopez-Sanchez was arrested for the crime. The 45-year- old undocumented immigrant convicted of seven felonies. Immigration officials tell CNN he's also been deported five times to Mexico and it would have been six, except that after a drug-related arrest in San Francisco, deputies did not follow a request from Immigration and Customs Enforcement to detain him. Deputies tell CNN that request was ignored because of no warrant or judiciary order of removal for him.

Lopez-Sanchez now faces homicide charges.

Kate's father says his family is heartbroken.

JIM STEINLE, VICTIM'S FATHER: It's not going to bring Kate back. Again, find the guy and whatever. The justice will work its way through the system. But our focus is on Kate.

SANCHEZ: Keep in mind, San Francisco is a sanctuary city, meaning that you cannot be held on the basis of your legal status -- John, Christine.

(END VIDEOTAPE)

ROMANS: And, of course, Donald Trump says this is what he is talking about with lawless at the border and people are coming in who are dangerous. And the United States does not have laws and cities don't have laws to help keep like Kate and her family from a criminal who's inside the country.

BERMAN: Happening now, the pope is in South America set to speak to more than 1 million people. We'll tell you the topics he is expected to address. That's coming up next.

(COMMERCIAL BREAK)

[04:25:53] ROMANS: Pope Francis arriving in Ecuador to kick off the tour of his native South America. The pontiff in a mass Sunday saying he is filled with excitement and hope for the days ahead.

What's on his busy agenda?

Rosa Flores is joining us now from Quito, Ecuador, with the very latest.

(BEGIN VIDEOTAPE)

ROSA FLORES, CNN CORRESPONDENT: This is a homecoming of sorts for Pope Francis. He was born in a South American country. He knows the history. He knows the language.

And in the 22 plus speeches that he's expected to deliver, he will be speaking in Spanish. So, a lot of people waiting to hear what he has to say. Of course, he is known for making controversial comments.

But his first stop, Quito, Ecuador, where he was welcomed at the airport by dignitaries, by the mayor of the city, by the president. He gave brief remarks where he asked people to be thankful for the little things.

Now, he will be visiting Bolivia and in Paraguay as well, where he is expected to deliver some of the same messages of peace and democracy.

(END VIDEOTAPE)

ROMANS: All right. Rosa Flores, thanks for that.

BERMAN: All right. Breaking news this morning: world markets on edge. Potential chaos hours away as Greece votes no, tells Europe to shove it. Take your bailout and shove it. So what happens now? That's next.

(COMMERCIAL BREAK)