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Latest on Istanbul Attack Investigation; One Week After Brexit Vote; Trump Says He is Running Against Two Parties; US Officials Say Honda and Acura Owners Should Stop Driving Them Immediately; President Obama Signs Bill to Help Puerto Rico; Hong Kong Marks Anniversary of Handover to China. Aired 3-4a ET

Aired July 1, 2016 - 03:00   ET

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


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[03:00:00] HALA GORANI, CNN NEWSROOM SHOW HOST: I'm Hala Gorani. It's 10 a.m. here in Istanbul where the city is in mourning honoring the victims lost in the terrorist attack at the airport behind me.

MAX FOSTER, CNN NEWSROOM SHOW HOST: I'm John Vause. It's 10. a.m. here at umber 10, Downing Street. David Cameron announced his resignation here just a week ago, saying the country needs political stability, but the politics have been anything but stable.

NATALIE ALLEN, CNN NEWSROOM SHOW HOST: And I'm Natalie Allen at CNN Center in Atlanta. We'll look at why Donald Trump is complaining about his own party. We want to welcome our viewers in the United States and around the world. This is CNN Newsroom.

GORANI: The evidence is now mounting about who might be responsible for those terrorist attacks on Tuesday night at Ataturk International Airport.

Turkish sources are saying that it all points to the top tiers of ISIS. A senior Turkish source says the three terrorists, apparently seen in this surveillance video came into Turkey a month ago from ISIS's self-declared capital Raqqa in Syria.

The source says that they brought with them the suicide vests and bombs that they used Tuesday night. Now, Turkish officials say that the three originally were from Uzbekistan, Kyrgyzstan and the Russian Republic of Dagestan had. And they say they are increasingly certain that ISIS leadership helped plan this attack.

Jared Malsin, is the Middle East bureau chief for Time Magazine and he joins me in Istanbul now. Let's talk about the significance potentially of having some of these fighters from ex-Soviet republics carry out this attack, Jared.

JARED MALSIN, TIME MAGAZINE MIDDLE EAST BUREAU CHIEF: Well, it's interesting. I mean, this is a known phenomenon that's been going on for some time. It's a central part of ISIS operation, foreign fighters from post-Soviet, plus including Dagestan, Chechnya, and of course Central Asia. We're being told that two of these men were from Kyrgyzstan and Uzbekistan. It's interesting in the sense that they are not Turks, they are not from Syria and presumably, we're being told part of the senior leadership, so.

GORANI: Right. But, talk to me a little bit about the area, the neighborhood of Istanbul where it is reported and we had our correspondent Nima Elbagir go to the apartment where it was reported they spent a month before the attack.

Would they have stood out? You know Istanbul.

MALSIN: Well, they wouldn't necessarily stand out. This is a giant cosmopolitan city, 14 million people. The neighborhood in fact itself is a vast neighborhood, it's very diverse. It is one of the neighborhoods that is known for having a large Syrian ex-pat population.

And so, it is entirely possible that this man could have planted into their surroundings. That said, there is going to be some very serious questions that Turkish law enforcement are going to answer about how they were able to go undetected while they find this...

(CROSSTALK)

GORANI: And one neighborhood told CNN that she smelled chemicals coming from the flat that they rented, et cetera. So, of course, the authorities are going to, as you say, answer tough questions about knowing that there was an ISIS threat and still is an ISIS threat against Turkey why these men weren't, you know, spotted earlier.

MALSIN: Right. Right. And that's one of the questions that the authorities here will have to be held accountable for, so.

GORANI: Let's talk about the wider ISIS issue, the ISIS threat against Turkey and why now and why this particular target. Because this isn't, you know, a Kurdish rally on the border. I mean, this is really at the heart of what modern Turkey represents, and its tourism industry as well.

MALSIN: Right. There has been a shift in the kinds of attacks that ISIS has been carrying out in this country. A year ago, they were attacking Kurdish activists in the kind of proxy war for the war they're fighting in Syria where they're also battling Kurdish militias.

Now they are targeting civilians, international visitors, tourists and of course, you know, the beating heart of kind of international trade and tourism in this kind of world city.

GORANI: Yes.

MALSIN: And so, it's a shift in the symbolism of what they're doing here and going for much more of a kind of attempt to strike terror into -- yes.

(CROSSTALK)

[00:04:58] GORANI: To keep what in the end? What is the political aim?

MALSIN: Well, that's kind of one of the deep questions about what ISIS is up to. In the medium term, we know that ISIS is losing ground on battle fields in Iraq and Syria and Libya.

GORANI: Yes.

MALSIN: Very significant losses to rival U.S. and Iranian backed factions, and all -- you know and all those countries minus Libya, of course. But they are attempting to reserve an image of decline...

GORANI: Yes.

MALSIN: ... by reversing headlines, by indiscriminately killing civilians who have nothing to do with these individual conflicts.

GORANI: So, the youngest victim was three years old and was buried just hours ago. Thanks very much, Jared Malsin of Time Magazine.

Inside the airport, a very touching moment yesterday. Hundreds of people paused for a memorial service for those who were killed. They left red flowers at the photographs of the victims as the airport imam led them in prayer, across Istanbul more funerals and more heartbreak.

Matt Rivers has our story.

MATT RIVERS, CNN CORRESPONDENT: A father in mourning stands watch over his daughter's casket. A gentle hand laid on top. Her name was Huda, just 8 years old. The light of his life, killed in the airport attacks.

(BEGIN VIDEO CLIP)

MUHAMMED AMIRI, FATHER OF HUDA AMIRI: She was a very lovely.

RIVERS: She was very lovely.

AMIRI: Very lovely. I lost her.

RIVERS: Killed alongside Huda were three of her aunts, all sisters. Kerime Amiri, 24, Zehra Amiri, 16, Meryem Amiri, 14. All of them had just arrived in Istanbul to visit family.

Abdulmumin Amiri, was the father to the sisters and 8-year-old Huda's grandfather.

"I'm heartbroken," he says. "We are so powerless and helpless against these terrorists."

He was outside the terminal with his family, waiting for a taxi. He didn't see the explosion, only its aftermath.

"I was five meters away from my girls," he says, "so I ran over. One was already dead. I took the other three to the hospital. They died, too."

Two of his other daughters and his wife were injured, but survived. They're all still in the hospital, unable to join the scores that came to a local mosque for the funeral under a bright Thursday sun.

Funerals like this one have been happening across the city both yesterday and today. It is the Muslim tradition to bury victims as soon as possible. Of course, there are friends and family here, but the majority of people here are just local, people who worship at this mosque here to pay their respects after an attack that hurt this whole city, the whole country.

There's so much sadness here, but there's anger, too, at those who would steal such innocence. "May God damn the terrorists," said the girl's uncle. "It's not one or two or three, but four good young people. Why are they getting killed?"

A small hill near the mosque, the three sisters and little Huda were carried to their grave sites. Her father, Muhhamed, led the way. A final act of love from a dad to a daughter.

Matt Rivers, CNN, Istanbul, Turkey.

GORANI: All right. I'll have more from Istanbul in a little bit this hour. But for now, back to John Vause in London.

VAUSE: Hala, thank you. It has been one week since the United Kingdom shocked the world and voted to leave the European Union. Immediately after that referendum, Prime Minister David Cameron came out of his residence behind me here and said he's resigning.

Many thought the former London Mayor, Boris Johnson, would be Britain's next leader, but on Thursday, surprisingly he said he was not running. Now one of the people being considered are frontrunner is Johnson's former ally.

CNN's political contributor, Robin Oakley is with me right now. And this truly is an extraordinary turn of events that nobody saw coming. Although, if you look at history, then perhaps we should have.

ROBIN OAKLEY, CNN POLITICAL CONTRIBUTOR: Well, favorites often fail to win the job when people fall. But, I mean, what is so extraordinary about this, John, is that David Cameron called this referendum essentially because his own ruling party, the conservatives have been split on Europe for a long time.

This was supposed to resolve the great split on Europe. Instead, we've seen David Cameron overthrown, we've seen market turmoil, and we've seen the Conservative party now fighting more bitterly than it has ever done before, where the personal exchanges becoming absolutely vicious.

One M.P. saying that Michael Gove, in failing to support Boris Johnson, his leave -- fellow leave campaigner, has found himself -- there's a pit in hell would be the appropriate place for him.

[03:10:10] VAUSE: And of course, the newspapers who are famous for their headlines here in Britain, they're having a great time with this. We'll have a look at the morning papers.

James will be our paper holder for the day, OK. This is one of my favorites. This is the Sun, a picture of Boris Johnson there and the headline is "Brexit-cuted." OK, let's move to over here with The Daily Mirror, "Justice, knife by his mate," "The shaming of Boris, the man who betrayed Britain."

And of course "Michael Gove is the justice master." And this is possibly the best, The Daily Telegraph, "An act of midnight treachery," which is note that Boris Johnson write for The Daily telegraph.

OAKLEY: Indeed. And they were both together at a party shortly before midnight, one with the arm around the shoulders of the other.

VAUSE: Right. So, that's the reference. OK. There you go, very well done. And, you know, a time of comparisons are now being made on social media out there in the press of the comparison via the TV series House of Cards.

There is article in the Huffington Post that they mocked a picture of what was the American version of House of Cards. And Michael Gove is there he is sitting in Abe Lincoln's chair. No longer starring Boris Johnson.

What is incredible about all of this is this husband and wife team, Michael Gove and his wife at the conspiracy theory say they're in cahoots together.

OAKLEY: Yes. His wife, Sarah Vine is a columnist for the Daily Mail. A lot of the trouble started with a leaked e-mail.

(CROSSTALK)

VAUSE: A leaked in a (Inaudible) yes.

OAKLEY: Yes, a leaked perhaps deliberately.

VAUSE: Yes.

OAKLEY: Leaked e-mail from her to her husband, Michael Gove saying, look, in negotiations with Boris, because he was to be Boris' campaign chief and Boris Johnson been for the leadership. Just make sure you have some people with you and you get things in writing.

VAUSE: Yes.

OAKLEY: That was the first time we had of the distrust between the two of them. But, you know, all of this, the kind of machinations that are going on, the scheming, the plotting, Theresa May, who has now become the strongest candidate for the conservative leadership and to become the next prime minister. She had, in her launch speech, she had a line which was obviously designed to undermine Boris Johnson which said, look, you people have got to remember that you need to learn that politics is a serious business that affects a lot of people.

VAUSE: Yes.

OAKLEY: It's not a game. Well, that now will help to undermine Michael Gove, as well. Because this being dismissed as student politics, right.

(CROSSTALK)

VAUSE: Right.

OAKLEY: Absolutely.

VAUSE: The thing that Theresa May, though, is that, you know, her speech, it's getting a lot of praise. And a lot of comparisons, too, with other very strong female leaders in Europe.

OAKLEY: Well, indeed. I mean, like Angela Merkel, perhaps the strongest politician in Europe, though not as strong as she was. She -- they're both daughters of priests, comparisons with Margaret Thatcher.

Well, like Margaret Thatcher, Theresa May doesn't do jokes, doesn't do a lot of chatting around the tea rooms and bars of the House of Commons. Like Margaret Thatcher, she's a workaholic. But unlike Margaret Thatcher, she's not a very ideological politician. She's quite a pragmatist.

She'll fight a corner on different issues, but does not that sort of sense of particular vision for a particular set of values.

VAUSE: But right now, given all the turmoil in this country has gone through on both, you know, on both sides of politics here with the Labour Party disarray, with the conservatives in disarray an uncertain future of how, what will happen with the Brexit.

You know, for someone like Theresa May, who in normal times probably wouldn't be, you know, considered much of a leading candidate to be prime minister. Well, suddenly various qualities very much in divide.

OAKLEY: That fact that she's a little bit dull...

VAUSE: Yes.

OAKLEY: ... and not too exciting is probably just what people want after the overexcitement that we've had through this.

VAUSE: OK. Well, Robin, it's been great speaking with you. I know you'll be following this throughout the day. These are incredible times for Britain. They've never seen anything like it before and it's not done yet. There's a long way to go and a short time to do it. Thanks, Robin. Well, E.U. leaders will, this week, meet in Brussels to discuss

Britain's future in and out of a bloc. But outside the halls upheld, everyday people in Belgium are also reacting to the Brexit.

Our Nic Robertson has that for us and a case of the Brexit blues in Brussels.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: A cloud hangs over Brussels. Several, actually, and some rain. But it's not the weather dampening spirits. It's Brexit.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think for English people it's a mistake, a big mistake, OK.

(END VIDEO CLIP)

ROBERTSON: Upon the drizzled cobbles, witness over centuries to Europe's wars, Yussef (ph) now sells his art.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: In my opinion, it's not a good idea. It's better that we will be together.

ROBERTSON: Twenty years here, he is Iranian, but European in spirit. The possibly is with Britain leaving, then, there will be less tourists.

[03:15:02] UNIDENTIFIED MALE: Yes, they will get less. Of course, for me.

ROBERTSON: And it's not so good.

UNIDENTIFIED MALE: For me, no. For the business also, it's not so good.

(END VIDEO CLIP)

ROBERTSON: Across town, near the E.U. headquarters, no less for Loren.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: My boyfriend is English actually. So, even on a personal level it's not a very good decision we saw. I really regret the decision.

UNIDENTIFIED MALE: It is disappointing. I mean, I'm a Euro -- I'm not a euro skeptic. I'm Euro critical but I'm very for European.

(END VIDEO CLIP)

ROBERTSON: With the disappointment, there is concern. The European project is floundering. (BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: This is just one sign that people are really unsatisfied and unhappy with the way Europe is going for the moment. And I think if there were other referendums in other countries, we might have similar results.

(END VIDEO CLIP)

ROBERTSON: Not an idle fear. This euro skeptic, MEP, ready to jump on the Brexit bandwagon.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Now as a citizen with this referendum said that Europe as it is does work well and is not for the citizens.

(END VIDEO CLIP)

ROBERTSON: Arriving home from a week at the beach, this young Belgian shell shock.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It makes me to have the feeling that stuff is falling apart. So, yes, that's not very positive. I'm thinking now what is going to be next, are there other going to leave.

(END VIDEO CLIP)

ROBERTSON: But in the gloom a ray of hope.

(BEGIN VIDEO CLIP)

ROBERTSON: And Boris Johnson falling out of the race for prime minister.

UNIDENTIFIED FEMALE: Well, at least some good news in this rainy weather today.

(END VIDEO CLIP)

ROBERTSON: No bad feelings in Brussels, then.

VAUSE: Nic Robertson there with a view from Brussels. Let's hand it back now to Natalie Allen. And of course, Natalie will have much more on the fallout from the Brexit later this hour.

VAUSE: All right, John, we'll see you in a bit. Sorry about the weather there. Thanks.

Donald Trump says he's running against two parties, including his own. We'll tell you next what some republicans say they need before endorsing him.

Also here, U.S. officials say owners of hundreds of thousands of Hondas and Acura's need to stop driving their cars immediately. The issue? The exploding air bags. We'll have more in a moment. You're watching CNN Newsroom.

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MICHAEL HOLMES, CNN CORRESPONDENT: Hello, everyone. I'm Michael Holmes. And this is your road to Rio update.

First, a grim discovery in the host city. Body parts washed up on the shores of Copacabana Beach just meters from where the beach volleyball athletes will compete in the coming games.

Police still investigating. They don't yet know the circumstances of the person's death, but they believe the victim was either a woman or a young adult.

[03:20:03] In sports development, Michael Phelps headed to his fifth Olympics. He is the most decorated Olympian of all time. Phelps qualifying by winning the 200-meter butterfly and is now the first man to make a fifth U.S. Olympic swim team. Phelps has a total of 22 Olympic medals, 18 of them gold.

Korean swimmer and Olympic medalist, Park Tae Hwan has filed an appeal with the national officials in hopes of being able to compete in this year's games. Park has already served an 18-month ban for having excessive amount of testosterone in his system.

But South Korea's top anti-doping policy prohibits athletes from competing on the national for an additional three years.

You don't have your tickets for the Olympics yet, you're in luck, Rio 2016 has open two more box offices in the city. A total now of four. And they're offering a 20 percent discount for some events.

That is your road to Rio update. I'm Michael Homes.

ALLEN: And welcome back to CNN Newsroom. Donald Trump is very likely to become the republican presidential nominee, but he is still struggling with a problem he has faced since his campaign started, gaining the support of key leaders from his own party.

What is still the problem? Here is senior White House correspondent Jim Acosta.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Just weeks before he set to become the republican nominee, Donald Trump isn't feeling like the life of the party.

(BEGIN VIDEO CLIP)

DONALD TRUMP, (R) U.S. PRESIDENTIAL CANDIDATE: Well, it's almost in some ways like I'm running against two parties.

UNIDENTIFIED MALE: Yes, no kidding.

TRUMP: But I'm not sure it matters because I think we're going to win.

(END VIDEO CLIP)

ACOSTA: Trump is now openly complaining at his rallies about his past rivals who are refusing to endorse him despite signing a GOP loyalty pledge to support the party's eventual nominee. A document Trump agreed to himself.

(BEGIN VIDEO CLIP)

TRUMP: They broke their word. In my opinion, they should never be allowed to run for public office again because what they did is disgraceful.

(END VIDEO CLIP)

ACOSTA: But it's not just Trump's opponents from the primaries. GOP senators are hesitating to get on board. Big time.

(BEGIN VIDEO CLIP)

SUSAN COLLINS, U.S. HOUSE REPUBLICAN: Donald Trump was not my second choice. He was not my third choice. And I'm going to see what happens at the convention. It's going to be very important to me whom Donald Trump chooses as his running mate. And that is arguably the most important decision that a candidate can make.

(CROSSTALK)

UNIDENTIFIED MALE: Yes, of course.

(END VIDEO CLIP)

ACOSTA: On Trump's vice presidential surge, CNN has learned New Jersey Governor Chris Christie is being vetted by the campaign, but one serious question it's not clear how high Christie is on the list.

Utah Senator Mike Lee in an interview with the Huffington Post is urging Trump to consider Texas Senator Ted Cruz, but Lee is still furious that Trump once floated a bogus conspiracy theory about Cruz's father.

(BEGIN VIDEO CLIP)

MIKE LEE, U.S. SENATE REPUBLICAN: We can get into the fact that he accused my best friend's father of conspiring to kill JFK.

(END VIDEO CLIP)

ACOSTA: And Cruz hasn't even endorsed Trump and Trump's tough message on trade remains a top worry for republicans. Consider his latest verbal is assault on Mexico, a key U.S. trading partner.

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TRUMP: Their leaders are so much smarter, so much sharper, and it's incredible. In fact, that could be a Mexican plane up there. They're getting ready to attack.

(END VIDEO CLIP)

ACOSTA: A recent poll showed a little more than half of republicans would rather vote for somebody else besides Trump. That's a lot of ground to make if the GOP convention is only three weeks away.

Jim Acosta, CNN, Manchester.

ALLEN: The U.S. Attorney General is facing criticism after she met with Bill Clinton. Loretta Lynch said she spoke briefly with the former president on Monday after they realized they were on the same airport tarmac.

Some democrats and republicans are calling their meeting a conflict of interest. Lynch is overseeing the ongoing investigation into Hillary Clinton private e-mail server.

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TRUMP: You see a thing like this and even in terms of judgment, how bad a judgment is it for him or for her to do this. I mean, who would -- who would do this?

(END VIDEO CLIP)

ALLEN: Lynch, however, is reassuring that the investigation has not been compromised or politicized.

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LORETTA LYNCH, U.S. ATTORNEY GENERAL: He did come over and say hello and speak to my husband and myself, and talk about his grandchildren and his travels and things like that. So, that was the extend of that. And no discussions were held on any cases or anything of that. And he didn't raise anything about that either.

UNIDENTIFIED MALE: Yes.

(END VIDEO CLIP)

ALLEN: U.S. federal safety regulators are urging the owners of more than 300,000 Hondas and Acura's to stop driving those cars immediately. They say new tests show Takata airbags in these cars have a high risk of exploding and killing passengers or the driver.

Regulators call the risks grave and say owners should have the airbags replaced right away. You'll find a list of the expected cars online at CNN Money.

[03:25:05] U.S. regulators are also investigating the autopilot on Tesla cars after a deadly crash. The self-driving system is supposed to automatically steer vehicles on highways, change lanes and adjust speed and let drivers take their hands off the wheel.

Official say a driver in Florida died when his Tesla collided with a truck that turned in front of him. Tesla said the autopilot could not tell the white side of the truck from the brightly lit sky and the bright wasn't applied.

U.S. President Barack Obama has signed a bill to help Puerto Rico get out of its massive economic crisis. The U.S. territory has run up nearly $70 billion of debt. The island is widely expected to miss most if not all of a $2 billion bond payment it owes creditors.

The bill signed by Mr. Obama will not provide funds to pay the debt, but it does prevent bondholders from suing Puerto Rico for a few months.

The U.S. military is immediately lifting a ban which had had forbidden transgender personnel from serving openly. Defense Secretary Ash Carter announced the policy change which rights groups quickly hailed. The move affect up to 11,000 transgender troops serving right now. Carter said it is a matter of principle.

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ASHTON CARTER, U.S. SECRETARY OF DEFENSE: I'm also confident that we have reason to be proud today of what this will mean for our military. Because it's the right thing to do and it's another step in ensuring that we continue to recruit and retain the most qualified people.

And good people are the key to the best military in the world. Our military and the nation of defense will be stronger.

(END VIDEO CLIP)

ALLEN: Gays, lesbians and bisexuals have been allowed to serve openly in the U.S. Armed Forces since the don't ask, don't tell policy was ended in 2011.

Next here, we'll get back to Istanbul and the possible connection from the deadly airport attack there. And the brothers who bombed the Boston marathon. Stay with us.

[03:30:00] (COMMERCIAL BREAK)

GORANI: I'm Hala Gorani at Ataturk Airport in Istanbul. Yet, another person has succumbed to injuries from Tuesday's triple suicide bombing, bringing the death toll to 44.

Police have been showing people in one Istanbul neighborhood a picture of the three men who they believe carried out the attack. Turkish officials say they have strong evidence that they were directed by ISIS leadership from inside Syria is what they're telling us.

Another new surveillance video obtained this time by an Italian newspaper shows one of the suicide bombers running through the airport, you see it there, brandishing his gun.

Turkish officials tell CNN that Tuesday's attack was well-planned. And sources are revealing new details about who was behind it.

CNN's Deb Feyerick reports.

DEBORAH FEYERICK, CNN CORRESPONDENT: The three men who carried out the deadly suicide bombings at the Ataturk Airport entered Turkey from Syria about a month before the attacks.

A Turkish government source telling CNN there is strong evidence ISIS leaders were involved in planning the attack at the international terminal at a nearby parking lot.

(BEGIN VIDEO CLIP)

WILLIAM BRANIFF, START EXECUTIVE DIRECTOR: Even after the one assailant was shot, despite the fact that there were no victims in his immediate proximity, he still killed himself using his suicide vest. These are people who were committed to seeing these attack out to its completion.

(END VIDEO CLIP)

FEYERICK: Authorities found a Russian passport from Dagestan believed to belong to one of the bombers. The other men from the former Soviet Republics of Uzbekistan and Kyrgyzstan. ISIS puts foreign fighters into regional brigades based on their nationalities.

It's possible the men served together says terror expert William Braniff.

(BEGIN VIDEO CLIP)

BRANIFF: It's very likely that because of things like common language, these individuals would have fought together as a part of ISIS. They would then be maybe more trustworthy to send across the border or to conduct this kind of high impact operation because they have a shared history and they could act as a cell.

(END VIDEO CLIP)

FEYERICK: If Dagestan sounds familiar it's because the same war torn region associated with the two Boston marathon bombers, Jahar and Tamerlan Tsarnaev came to the United States after leaving in Dagestan, where authorities believe Tamerlan became radicalized.

There are as many 7,000 foreign fighters who have traveled from Russia and the former Soviet Republics to join ISIS. More than half are thought to be from the Dagestan and neighboring Chechnya where Islamist leaders have pledged loyalty to ISIS.

Experts say hitting a major destination in Turkey which borders Syria is not surprising.

(BEGIN VIDEO CLIP)

BRANIFF: Their modus operandi is to destabilize regimes primarily in the Muslim world. And so, destabilizing Turkey is a really, really good way to remain strategically relevant even if you're losing terrain in Iraq and Syria. (END VIDEO CLIP)

FEYERICK: Another reason this battled hardened terrorists may have targeted Turkey is because Turkey is now better patrolling its airports looking for ISIS members. That doesn't sit well with ISIS which may be sending a message there's a price to pay for any sort of crackdown whatsoever.

Doborah Feyerick, CNN, New York.

GORANI: And we're learning more about the 44 victims killed in the Istanbul airport attacks. Twenty-year-old Hussein Tunch was a high school teacher. He was killed in the terrorist attack when he went to meet a friend arriving at the airport.

In addition to his family, many of his students came to his funeral. Thursday its brothers says Tunch was a religious man and was fasting during Ramadan. Fathi Bayoudh was a Tunisian doctor who'd been in Turkey for about two months and here's the cruelty.

[03:35:02] He was trying to rescue his own son from ISIS in Iraq. A colleague says Dr. Bayoudh was a veteran of many humanitarian missions including this one after an earthquake in Algeria.

Eight-year-old Huda Amiri and three of her aunts were laid to rest Thursday. The sisters were just 24, 16, and 14 years old. They had just arrived in Istanbul to visit family. Huda's grandmother and two other aunts are still in the hospital.

Istanbul's Ataturk Airport quickly resumed flight after Tuesday's terrorist attack. Some say perhaps too quickly. But on Thursday, activities in the departures hall came to a halt. Hundreds gathered to honor those lost in the attack.

Our Jomana Karadsheh was there.

JOMANA KARADSHEH, CNN CORRESPONDENT: [00:00:50]A moment of silence. A prayer for the dead. Fighting back tears, the imam of Ataturk Airport mosque says, "For years we were together, for years we were like siblings, I know every one of them. My God, grant us patience. Bless them. Make heaven theirs."

"You don't have to speak the language to feel the pain and grief."

Two days after terrorists struck this airport, hundreds gathered for a memorial service, so many overcome by emotion. The departure's area at Ataturk International Airport came to a stand still for a few minutes.

These are the faces of some of the victims of the terror attack. Their names and underneath it the message we won't forget. Not everyone knew them, but on this day, passengers and employees here came together to honor the dead.

GORANI: All right. There you have it. We're going to be back with much more news after a short break on CNN. I'm Hala Gorani. Do stay with us. [03:40:00] (COMMERCIAL BREAK)

VAUSE: Welcome back, everybody. Just gone 8.40 here on a Friday morning. I'm John Vause in London where the past week has been filled with political chaos following the vote to leave the E.U.

The economy is also in disarray. The Bank of England says the British economy needs help and it may cut interest rates soon.

(BEGIN VIDEO CLIP)

MARK CARNEY, BANK OF ENGLAND GOVERNOR: Now, in my view, and I'm not prejudging the views of other independent members of the MPC. The economic outlook has deteriorated and some monetary policy easing will likely be required over the summer.

(END VIDEO CLIP)

VAUSE: Now, the governor of the Bank of England, Mark Carney was trying to calm all the uncertainty. But the pound fell against the U.S. dollar by more than 1 percent after that statement. It is falling further at the moment. Currently down a fifth of a percent against the dollar.

Callum Williams if the Britain economic correspondent -- do you think with The Economist, he joins us now from our London studio. Callum, thanks for being with us.

I want to talk about the fallout which continues from this decision and seems to be hitting the E.U. right now. They've been hit with a credit downgrade by Standard & Poor's, what is the reason for that and what are implications.

CALLUM WILLIAMS, THE ECONOMIST ECONOMICS CORRESPONDENT: Well, the reason for the downgrade is really twofold. One because the outlook for U.K. growth has deteriorate substantially since the vote to leave the U.K.

And the second reason is the policymaking in the U.K. has become extremely unpredictable. And just bear in mind that the credit rating agencies are looking at the, you know, creditworthiness of the U.K. government. And if the U.K. government is in disarray, then it looks, you know, less likely they're going to meet their obligations.

VAUSE: And the growth forecast here for Britain has also been cut, the economic uncertainty. How much of that is being driven by the current political uncertainty?

WILLIAMS: Well, I think a large amount has been driven by that. I mean, I think if you're looking to invest in the U.K., if you're someone either abroad or within the U.K., you've got money to spend on, you know, factories or called whatever.

At the moment, you are holding back because you simply do not know even the likely path that, you know, the U.K. government is like, is going to embark on as regards its relationship with the European Union. And that makes the whole outlook extremely uncertain and that's primarily why the U.K. is likely to fall into a recession by the end of this year.

VAUSE: Well, the Bank of England is passing more stimulus for the economy and trying to get over the worst of the economic turmoil. And that does seem to at least stabilize the markets. In some way, is the Central Bank making up for the consequences of the decisions which have been made by the politicians?

WILLIAMS: Well, Mark Carney is doing a good job, but you have to remember, the Bank of England has almost no room for maneuver whatsoever. Because the interest rates are already at 0.5 percent, which is the lowest on record.

So, they can't really cut interest rates much further and they have, as everyone knows, already embark on a large program of quantum of easing. So, they already doing quite a lot to keep the economy going. So, I think it with would be a mistake to say the Bank of England can save everything.

VAUSE: You know, looking at the current situation now and what the government is going to have to do to get over this period of uncertainty, economic stimulus, cutting the interest rates, does that now mean that the government's plans to try and fix the books, if you like, to try and fix the deficit, has that now been reduced to rubble?

WILLIAMS: I think that is not -- that may well be true. The tax take is likely to suffer significantly even, you know, really from this point onwards. And that means that come November when there's going to be another kind of big round of forecasts and so on, official forecast in the public finances, we would be highly surprised if there weren't a large downgrade in the likely path of the U.K.'s public finances.

VAUSE: So, basically all those years of austerity have been for naught?

WILLIAMS: Well, I mean, you could say that. You could say that. I mean, I think the overall plan for government is to have a budget surplus at some point. Currently the official plan is by 2020. Already that target was looking a little bit dubious because growth was slowing already and so on.

But now that growth is likely to significantly slow or the country is going to fall into recession, which we think is quite likely, the chance that we'll be able to eliminate the budget deficit by 2020 looks fairly small to us.

VAUSE: OK. Callum, thanks for being with us. Callum Williams there with The Economist. I appreciate it.

[03:45:02] Well, Cornwall which is about five hours southwest of here voted to leave the E.U. last week, and now it wants to keep the millions of pounds in E.U. subsidies it gets every year.

Phil Black is live in Cornwall right now. So, Phil, it seems they want their Brexit cake and to eat it, too. PHIL BLACK, CNN CORRESPONDENT: Indeed, John, yes. Hundreds of

millions of pounds has been is being invested here in Cornwall, money that has come from the European Union, it is targeted at communities, areas of Europe that requires developments where with poverty and that sort of thing is an issue.

And so here in Cornwall, as traditional industries like fisheries and so forth have suffered over the years. It has received this money to build up roads, infrastructure, to go into training, education, boosting the economy, creating jobs. That's the whole idea, as I say.

So, a huge sum of money. Despite that, it did not stop the people of Cornwall voting in favor of Britain leaving the European Union. Fifty six percent in total voted for Brexit.

Now people here, certainly the local authorities are looking at potentially a huge black hole in their plans to develop this region. And so they are hoping, appealing, really, to the British government to step in and match that money.

Of course, whether that happens or not, that will depend on the government of the day, the prevailing economic conditions and budgetary priorities. So, their optimistic request having voted for Brexit is for Britain to now step up and fill the gap, John.

VAUSE: I guess on the positive side, though, there's an expectation there that there may be some kind of boost from increased tourism.

BLACK: There is the potential for that if the pound stays weak in the sense that British people may not find it as affordable to travel overseas. So, they'll holiday locally and people from overseas will find this more attractive because it will be cheaper for them to come here.

So, a potential boost there. But it also depends on what else is going on with the economy, as well, particularly in terms of domestic tourism. If the rest of the economy is weak, if there is inflation, it depends on what interest rates do.

So, all of these you have to think are precious on households this will ultimately influence and determine whether or not more or fewer people come to Cornwall for a holiday and, like so many things in the current situation across the country, it's really largely unknown at this time.

VAUSE: Yes. There are so many unknowns out there. Phil, thank you. Phil Black, live this hour in Cornwall.

We'll take a short break. Much more when we come back. You're watching CNN.

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MICHAEL HOLMES, CNN CORRESPONDENT: Hello, everyone. I'm Michael Holmes. And this is your road to Rio update. First, a grim discovery in the host city. Body parts washed up on the shores of Copacabana Beach just meters from where the beach volleyball athletes will compete in the coming games.

Police still investigating. They don't yet know the circumstances of the person's death, but they believe the victim was either a woman or a young adult.

In sports development, Michael Phelps headed to his fifth Olympics. He is the most decorated Olympian of all time. Phelps qualifying by winning the 200-meter butterfly and is now the first man to make a fifth U.S. Olympic swim team. Phelps has a total of 22 Olympic medals, 18 of them gold.

Korean swimmer and Olympic medalist, Park Tae Hwan has filed an appeal with the national officials in hopes of being able to compete in this year's games. Park has already served an 18-month ban for having excessive amount of testosterone in his system.

[03:50:01] But South Korea's top anti-doping policy prohibits athletes from competing on the national for an additional three years.

You don't have your tickets for the Olympics yet, you're in luck, Rio 2016 has open two more box offices in the city. A total now of four. And they're offering a 20 percent discount for some events.

That is your road to Rio update. I'm Michael Homes.

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ALLEN: Welcome back. Hong Kong is marking the 19th anniversary of the British handover of the territory to China. In an official ceremony, Hong Kong's top leader called for greater cooperation with Beijing.

Outside, pro-democracy protesters scuffled with police. Activists say Beijing is violating the one country/two systems rule by enforcing its laws in Hong Kong. The question is, is this more of a celebration or more of a protest?

Let's find out from our Asia Pacific editor, Andrew Stevens. He joins me now live from the rally. Hello to you, Andrew.

ANDREW STEVENS, CNN ASIA-PACIFIC EDITOR: Hello, Natalie. The rally is underway here. This is the protest rally which covers a whole lot of issues to do with Hong Kong. But the theme this year is about trying to see the back of the current chief executive, the leader of Hong Kong, CY Leung, a deeply unpopular man.

And the theme at this year's rally is for CY Leung to stand down. Having said that, there are many, many issues which bring people out on to the streets every July 1st to mark the official handover of Hong Kong back to China.

They could range from more rights for helpers in Hong Kong, worker's rights, also for animal concerns. So, really it is a broad, broad range. But at the moment, as you can see behind me, I don't know if you can

start to see going back here. That is a cue that will snake back perhaps one, maybe two kilometers behind me. As the crowd, a very good crowd I should say, makes their way to Central Hong Kong where they will hold another rally.

It's full of all sorts of people from all walks of life here. These rallies do tend to bring out people with grievances, with concerns about the economy, particularly about politics.

Now, what's happened this year in particular, the focus -- the focal point, if you like, of this rally was an appearance at the front of the rally by a Hong Kong bookseller who had been abducted on the border with Hong Kong and China and held in detention for six months. He was released. He has been speaking to the local press about what he talks about is his mental torture which really did shocked the people of Hong Kong.

He was one of five booksellers who were abducted. Now these booksellers have been selling books which basically contain salacious gossip about the leaders in Beijing. They were taken, they were picked up. Three of them on the border with Hong Kong, one here in Hong Kong, and one actually in Thailand where they were taken into detention and interrogated.

They have now returned home. But certainly that has been a major issue here. And one of those booksellers, Lam Wing-kee was supposed to be here today, he called out at the last minute, Natalie, saying that he feared for his personal safety.

He said -- one of his people said that he had been followed for the last couple of days and he did not feel comfortable coming out in public today.

[03:55:03] So, at the moment, it's not leader list but the usual political figures leading this march. This is going to go on for several more hours here in Hong Kong. As always, July the 1st, a very, very hot day here in Hong Kong, but it doesn't seem to deter people from coming out.

Organizers say they want to see 100,000 people, Natalie. Still early in the day. We'll get a much better idea of numbers a bit later.

VAUSE: My computer is frozen up.

ALLEN: Andrew, thanks so much for that report. And I'm hearing a report that our coverage of this rally where you are is being blocked out in China. Can you tell us about that?

STEVENS: Hardly surprising. Because the background of this, of course, is Hong Kong is a separate autonomous region within China. That handover very clearly stipulated that Hong Kong will be one country -- sorry, China will be one country, but there will be two systems. There will be the system of mainland China and the system of Hong Kong. And this is critical to Hong Kong's freedom. What it enshrine,

Natalie, was there was freedom of speech, freedom of expression, freedom of assembly like this. You would not see this in any street in Beijing, certainly not sanctioned.

So, these are the sort of principals that have been guiding Hong Kong and Hong Kong has been jealously guarding in the 19 years since the handover. Beijing does not want this sort of scene, if you like, broadcast in China. They don't want the Chinese people to see a part of China protesting freely against a leader whoever was, in effect chosen by Beijing, Natalie.

ALLEN: Andrew Stevens, covering the rally for us there in Hong Kong live. Thank you so much, Andrew. And thank you for watching CNN Newsroom. I'm Natalie Allen in Atlanta. Early Start is next for viewers in the U.S. For the rest of the world, CNN Newsroom continues with John Vause in London.

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