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EARLY START

Deadly Storms Across the Midwest; New Terror Threat at the Airport; USA Versus Belgium in World Cup; Iraq to Start Forming New Government

Aired July 1, 2014 - 05:30   ET

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


(COMMERCIAL BREAK)

POPPY HARLOW, CNN ANCHOR: Happening now, deadly storms barreling across the Midwest. This morning, hundreds of flights are grounded. Neighborhoods left unrecognizable and in desperate search to find one teen swept away by the storm.

MIGUEL MARQUEZ, CNN ANCHOR: And a new terror threat at the airport. New bombs that passed through the airport undetected. What's being done to stop them, just ahead.

HARLOW: A must win for Team USA taking on Belgium today at the World Cup. We are taking you to Brazil for how the team is preparing for this critical match.

Welcome back to EARLY START, everyone. I'm Poppy Harlow. This is all Miguel can think about this morning is football.

MARQUEZ: I'm into it. I love World Cup. No, I'm Miguel Marquez. It is 30 minutes and 39 seconds past the hour.

OK, I'm a little too excited, perhaps. Now put down those waffles and those French fries, Pommes frites, and grab a piece of apple pie. Team USA now a mere 10 and a half hours from its World Cup match with Belgium. But who's counting? It's a knockout round so one loss and the World Cup dream is over.

HARLOW: The U.S. could be getting some extra help today in the name -- in the form of Jozy Altidore. He is available to play after missing most of the group stage with a pretty serious leg injury.

Laura Baldesarra has more on that from Brazil.

LARA BALDESARRA, CNN SPORTS CORRESPONDENT: Good morning, Poppy and Miguel. Today is the day. Are you guys excited? Because I definitely am. Right behind me is where the USA will face Belgium in their Round of 16 match. Now unlike the group stage, this is, of course, do or die. The USA must win this match.

This is actually just the first time that the USA is playing Belgium since the 1930 World Cup. And there's really not too much history between these teams but there are a number of likenesses. Both sides very physical teams. Both sides also very tactically astute teams. Now one big note for the USA ahead of today's game is that Jozy

Altidore, the striker who was injured in the very first game, he has been deemed fit. The question is now whether Jurgen Klinsmann will be including him in his starting 11 and I'm not really 100 percent convinced that he will be.

Now the guy to keep your eye on for Belgium, that would be Romelu Lukaku, or someone that I like to call the man-child. This kid, he is a beast. He is 21 years old. He is a top striker. He has such a clinical finish, but he's also such a physical force with this ball at his feet. So it really might come down to the USA's defense and even the USA's midfield to really slow down the Belgium play.

Now all that being said, do I think that the USA can do it? Yes, I really do. I just don't really think they can do it in 90 minutes. Not even really 120 minutes. I think that this match might be decided in penalty kicks, which means it might come down to the two shot stoppers. And Tim Howard, he might have a bit of an advantage. He does play in the Premiere League. He's quite familiar with a number of the players on Belgium. So what does that mean? He knows their tendencies.

I'm just saying. I'm certainly looking forward to this match, guys.

MARQUEZ: Well, she is looking forward.

HARLOW: She's having so much fun. And we're here.

MARQUEZ: I'm going to need more body paint and more beard given her prediction.

HARLOW: Do you think they can pull it off? Team USA?

MARQUEZ: Of course. I mean, the Belgians are good, but the USA has been playing fantastic. And Altidore is back.

HARLOW: Surprising.

MARQUEZ: It's going to be -- it's going to be interesting.

HARLOW: Looking forward to it.

All right, now let's talk about the pretty extreme weather in this country. It has been an ugly night in parts of the Midwest. Lightning sending a clear warning in the skies over Chicago. Driving rain brought much of that city to a halt last night. Even the Sears Tower got hit by a lightning bolt.

Chicago's O'Hare Airport canceled hundreds of flights in and out of the city. A big headache there.

MARQUEZ: Indeed it is. Violent storms left the roads in and around Milwaukee littered with trees, some of them were ripped right up by their roots thanks to wind gusts up to 80 miles an hour.

HARLOW: And the storms turned deadly in Iowa. One person was killed after getting trapped in a collapsed building near Cedar Rapids where almost eight inches of rain fell. A 17-year-old boy missing this morning after getting swept into a storm sewer.

MARQUEZ: Awful.

(BEGIN VIDEO CLIP)

GREG BURLOW, CEDAR RAPIDS PUBLIC SAFETY SPOKESMAN: At this point, the victim's family has assembled in the area. And we have a chaplain here to provide some type of comfort for them, emotional comfort at this point as the search is going on.

(END VIDEO CLIP)

HARLOW: A second boy was also swept into the sewer but emerged more than a mile away. A disaster proclamation was issued for five counties in Iowa.

Indra Petersons has more in what's in store for today. Also tropical depression headed this way just in time for the 4th of July weekend.

INDRA PETERSONS, AMS METEOROLOGIST: Which could turn into a hurricane. And it's forecasted certainly to be a hurricane.

MARQUEZ: Yikes.

PETERSONS: So yes, let's get right to it. We still have that system in the Midwest that we showed you out there. Notice all the lightning and instability that is already out there. Remember, it had hurricane force winds, 70 or 80-mile-per-hour winds were clocked. And that's the threat that we still have today. Talking about 27 million of you from Upstate New York all the way back in through Arkansas.

That's where this threat is today but it stays with us. It's a very slow-moving system. So even by the time we get in through tomorrow, we're still going to be talking about really all the way from the northeast, kind of back down even in through Virginia. So that's one side of the equation. A lot of people are saying, I need to fly, it's 4th of July. When do I go?

Well, take a look. First threat, you have the cold front here. But as soon as that moves out, we talked about the severe weather, the heavy winds and of course rain and instability with that. Then we have a low. This is the low that's now depression that is likely to form into a hurricane. So very difficult on the East Coast here. Really the entire week.

Right now we're seeing about 35-mile-per-hour winds. So currently just a depression but this is likely to be Arthur here. In fact expected to be a tropical storm by about 2:00 today. Notice what happens as we get in today and tomorrow in through about Wednesday night. We're still talking about this developing off the coastline, bringing that heavy rain in through the Carolinas.

Then it turns into a hurricane, guys, right off of D.C., right on the 4th of July, really in the early morning hours there. Speeding up and then hanging out, all the way even in through the northeast.

Good news, it does speed up, therefore it doesn't move out of here by Saturday or Sunday. Timing wise, already seeing the rain in Florida today. Then into the Carolinas as we in through tomorrow, and of course as you get into the 4th of July itself, there's that bulls eye hanging right off the coastline. So very tough to say when can you fly? First it's the cold front, then it's the hurricane.

HARLOW: You knew that all morning.

MARQUEZ: I'm going to lock myself in my bathroom this afternoon.

(LAUGHTER)

PETERSONS: Stay there until Saturday.

HARLOW: Sounds like a plan. We'll meet you there, Miguel.

MARQUEZ: Developing this morning, the U.S. now looking at new airport security measures because new explosives being designed by al Qaeda. Terror cells in the Arabian Peninsula are said to be developing explosives designed to avoid security detection.

(BEGIN VIDEO CLIP)

REP. PETER KING (R), NEW YORK: You hope that you're wrong. You hope that the threat is not there. But considering the cast of characters that's coming together, we have to assume that there can be a device that they would attempt to use against us.

(END VIDEO CLIP)

MARQUEZ: Now officials tell CNN there's no imminent threat or a plot. And additional vulnerability has been identified as being addressed by the Department of Homeland Security.

HARLOW: Advocates for women's health rights are vowing to fight on after being dealt a blow by the Supreme Court. Justices ruled corporations that object to certain contraceptives on religious grounds cannot be forced to provide them. That includes the so-called morning-after pill. This ruling does not prevent the government from finding another way to provide that coverage.

MARQUEZ: Now 140 immigrant detainees will be flown from Texas to California today. It's the start of an effort to alleviate overcrowding of migrants along the border in Texas. It comes a day after President Obama vowed to take action on the immigration crisis by himself. He went after House Republicans for refusing to allow any action in Congress.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: As we speak, there are enough Republicans and Democrats in the House to pass an immigration bill today. I would sign it into law today. And Washington would solve a problem in a bipartisan way. But for more than a year, Republicans in the House of Representatives have refused to allow an up or down vote on that Senate bill or any legislation to fix our broken immigration system.

(END VIDEO CLIP)

MARQUEZ: Now the president's first moves included shifting more resources to the border and ordering his staff to find steps he can take without congressional approval.

HARLOW: Also happening today, the president trying to shift some of his focus to the economy. He's set to deliver remarks calling on Congress to invest in America's infrastructure, to help create some much needed jobs. President Obama said he is willing to take that action as well, without Congress, if he has to.

MARQUEZ: And already under a microscope due to a faulty ignition switch that have led to 13 deaths. GM is recalling an additional 8.4 million vehicles because of a similar defect. The latest involves older models dating back as far as 1987. Those cars are linked to three deaths but the crashes haven't been officially linked with the ignition problem.

GM has now recalled more than 27 million vehicles in the U.S. this year for safety related repairs.

HARLOW: Also GM announcing it will offer at least $1 million to families of victims who died in crashes that were caused by that faulty ignition switch. Now the defect, as Miguel just said, is linked to at least 13 deaths. Many more injuries. The automaker will also offer $300,000 additionally to each surviving spouse and dependent.

But if victims agree to this compensation plan, they give up their right to sue GM. That is a tough decision they're going to have to make. Some question, though, if the amount is enough.

I sat down yesterday with Ken Feinberg. He's a victim compensation expert. He is the man tasked with allocating this victim compensation. Here's part of what he told me.

(BEGIN VIDEO CLIP)

KENNETH FEINBERG, MEDIATION ATTORNEY: I guarantee you, as sure as anything, based on experience, there will be many, many claimants who will say, but is it enough? How can money ever be enough if you've lost a loved one or a quadriplegic or a permanent brain injury?

Money is a pretty poor substitute, I must say, for a loss and horrible, life-altering injury.

(END VIDEO CLIP)

HARLOW: And much more of that interview with Ken Feinberg and how he makes that very difficult decision on CNNmoney.com.

All right. Time now for a quick check of the market and your money before markets open here in the U.S. Asian stocks mixed this morning. Europe, though, opening higher on some pretty upbeat economic data out of China. U.S. futures pointing higher ahead of the open as well.

And it's a wrap, the U.S. stock market ended the first half of the trading year up. Up and it was a pretty solid gain. The S&P 500 hit 22 record highs in the first up six months of this year. So far it's up 6 percent on the year. The Dow was up just about 1.5 percent. That is the largest half year lead of the S&P 500 they have had since, really since the recession.

Tech heavy Nasdaq is up 5.5 percent on the year. The Nasdaq, of course, has been boosted by some outperforming tech stocks. One recent stand out, GoPro. Do you have one? The camera maker had a stellar debut on IPO on the Nasdaq on Thursday after another pop on Monday. The stock already up 70 percent.

MARQUEZ: I'm surprised we don't have some video there of, you know, people doing flips in the air.

HARLOW: (INAUDIBLE) and all that. Yes.

MARQUEZ: Happening now, hundreds more U.S. troops heading to Iraq as terrorists continue their march towards Baghdad. And Iraq's leader commit to a big political change.

We are live with the latest coming up after the break.

(COMMERCIAL BREAK)

MARQUEZ: The newly elected parliament in Iraq holding its first session at this hour as the country starts the process of forming a new government. Prime Minister Nuri al-Maliki has vowed to stick to the timeline which the U.S. insists on to provide help battling ISIS. Now more American help is sent to the region as the casualty figures grow.

Nima Elbagir is live in Baghdad with the latest -- Nima.

NIMA ELBAGIR, CNN CORRESPONDENT: Miguel, just to give you a sense of the rising temperature here on the ground, those new U.S. troops aren't just going to be limited to protecting the embassy and the immediate U.S. assets. They're also, we've been told, going to be distributed along the major travel routes and the airports which we've been told by a number of sources on the ground is being perceived as being increasingly vulnerable as it is on the west side of the capital.

ISIS' gains in Anbar Province gives them a direct line of sights straight to the gates of Baghdad and that's where their attention and their aim is at the moment. So much at stake here as the Iraqi parliament convenes. We've had a -- we've had a little bit of a beginning of a session. Not a full quorum, I should say. There is a sense that perhaps some MPs have decided not to attend. We're trying to confirm why whether this is a boycott or a sense of lack of confidence. But the reality is that this government needs to convene and it needs to convene as soon as possible. Get that much needed military support from the U.S. and others -- Miguel.

MARQUEZ: Not very good for a starter, Nima. Does it -- is there any hope that Maliki will actually form a representative government that will include Sunnis and maybe take a little bit of the gas out of the dynamic that is happening there now?

ELBAGIR: There is, of course, a lot of horse-trading going on behind the scenes but the reality is, what are his other options? Many of his political rivals and many along the spectrum where the Sunni political camp or in the Kurdish political camp, they see Prime Minister al-Maliki as the architect of much of this crisis because of the criticisms of the marginalization and the disenfranchisement of other ethnic groups during his Shia-led government. That is just what it is here on the ground.

And he doesn't really have many options open to him. He can try and bring together a coalition. But if he fails at that then it has to be business as usual because the reality of this situation is just so pressing, Miguel. And we can see that in the ratcheting up of the casualty figures. Nearly 2,500 killed in June and over 2,000 injured. And that death toll is only set to rise -- Miguel.

MARQUEZ: It only looks like it's getting worse.

Nima Elbagir for us in Baghdad, take care of yourself and all your crew out there. Thanks.

HARLOW: All right. Let's take a look at what's coming up next on "NEW DAY." Kate Bolduan joins us now.

Good morning, Kate.

KATE BOLDUAN, CNN ANCHOR, NEW DAY: Good morning, guys. I know you feel it. We are following the big World Cup fever. The big World Cup game today, USA versus Belgium. Team USA with everything on the line. If they win the move on. If they lose, they go home. Simple as that.

Chris is in Salvador, Brazil talking with some soccer experts about whether or not the U.S. has what it takes to advance. He's also of course getting in with the diehard fans. You have to if you are there.

(LAUGHTER)

Look who that is. He's even talking to Teddy Goosevelt. You'll want to know that and you want to hear that interview coming up.

But we're also taking a look here at home, watching a major storm brewing off the East Coast. That could hit just in time unfortunately for the July 4th holiday. It could become the first named storm of the season and it's promising to be a soaker. That's what could be happening in a couple days. But already this week, a nasty storm system just pummeled the Midwest. We're going to look at where it's headed.

MARQUEZ: Wow. I love the Teddy Roosevelt stuff. HARLOW: Goosevelt.

MARQUEZ: Goosevelt. Yes. I know.

HARLOW: I know. I know.

MARQUEZ: Thank you, Kate. Looking forward to it.

HARLOW: Looking forward to it, Kate. Thanks so much.

MARQUEZ: Now Toronto's admitted crack smoking mayor is back. That's my best --

HARLOW: That was pretty good.

MARQUEZ: Yes, my best. Rob Ford fresh from rehab making a new plea to keep his job. What he had to say, coming right up.

(COMMERCIAL BREAK)

HARLOW: A 13-year prison sentence for a Southern California man who tried to held al Qaeda. 25-year-old Sinh Vinh Ngo Nguyen pled guilty to attempting to provide weapons to terrorists. He was arrested last year after meeting with a supposed al Qaeda recruiter who turned out to be an FBI agent. The judge also ordered 10 years of post-release supervision.

MARQUEZ: And the NCAA reopening the investigation into the University of North Carolina. The athletics program and an academic department have long been suspected of holding dozens of bogus classes and inflating grades to help basketball and football players. Accusations date from 1997 to 2011. The UNC acknowledges the probe has been re- launched but wouldn't comment further.

HARLOW: Meantime Donald Sterling's mental competency will apparently not be an issue at the trial next week on the sale of the L.A. Clippers. The court will decide if Shelly Sterling was authorized by the terms of the family trust to remove her estranged husband as a trustee and to sell the team on her own. Now Donald Sterling is fighting the Clipper sale to former Microsoft CEO Steve Ballmer who has agreed to pay a shocking $2 billion for that franchise.

MARQUEZ: And a change of heart from Louisiana congressman caught on camera cheating on his wife. Sounds like a country western song. Vance McAllister now says he will seek another term in office. He originally said he wouldn't run after being caught kissing an aide weeks after winning his election on Christian values platform. But now McAllister says he'll leave it up to the voters.

HARLOW: Rob Ford is back and he says he's better than ever. Ready to take a run for another term as Toronto's mayor. Ford was back at work Monday after two months in rehab. He insisted he is clean and apologized for the bizarre behavior that led to his time in rehab. Ford called himself ashamed, embarrassed and humiliated, and blamed only himself for his troubles.

(BEGIN VIDEO CLIP)

ROB FORD, TORONTO MAYOR: Thanks to my treatment. Thanks to my treatment, I can proudly say today that I have begun the process of taking control of my life.

(END VIDEO CLIP)

HARLOW: As for his re-election bid, Ford says he looks forward to serving many more years in Toronto. Voters will head to the polls to decide for themselves in October.

MARQUEZ: I wonder if he can make it. We'll see.

HARLOW: Maybe.

MARQUEZ: Pretty tough.

HARLOW: The big trouble behind the scenes at America's hottest new dating app. You know what we are talking about? Tinder. We'll explain next.

(COMMERCIAL BREAK)

MARQUEZ: This is cool. Some pictures from Vandenberg Air Force Base in California. NASA is set to launch a mission today any moment now. The first of its kind to study climate change. It's called Orbiting Carbon Observatory 2. The NASA mission is focused on the dynamics of carbon dioxide in the atmosphere. Both where it comes from and where it is absorbed. Again, live pictures. We wait for this rocket to launch in Vandenberg, California.

HARLOW: Very cool. We'll keep an eye on that for you.

Meantime, let's get an EARLY START on your money. U.S. stocks futures higher this morning ahead of the open. Despite yesterday's slump, U.S. stocks had a very strong end to the first half of this year. The S&P 500 has hit 22 record high so far. It's up 6 percent on the year. The Dow up 1.5 percent and the outperforming tech stocks had bumped the Nasdaq up 5.5 percent.

Meantime, GM in the headlines once again today, announcing six more recalls late yesterday affecting a total of 8.4 million vehicles. This is the largest single day recall for GM yet. This brings its current total of recalls in the U.S. to more than 27 million so far this year alone. That number is nearing the 30.8 million record for recalls set in 2004. But that tally was for all auto makers, not just a single brand. This newest recall is mostly for ignition switch defects.

Meantime, popular mobile dating app Tinder is being sued for sexual harassment and discrimination. A former marketing exec brought a suit Monday claiming that she was the subject of abusive behavior, verbally abusive behavior, also inappropriate messages while at the company. She is a former co-founder.

"USA Today" reporting this morning she was allegedly told that she was stripped of her title because having a 24-year-old girl as a co- founder made the company, quote, "seem like a joke." We of course have reached out to the company and are awaiting comment.

All right.

MARQUEZ: Wow.

HARLOW: That'll do it for us.

MARQUEZ: Great to be with you today. That was fun.

HARLOW: That was fun. Now to soccer.

MARQUEZ: To football. And USA.

HARLOW: "NEW DAY" starts right now.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I believe that we will win. I believe that we will win.

(END VIDEO CLIP)

CHRIS CUOMO, CNN ANCHOR: Day of destiny. We are live in Salvador, Brazil and behind us is where it will all happen. The U.S. soccer team will either beat Belgium or go home.

Here, the fans are on fire. Back home in the U.S., millions are preparing to play hooky for the big game. We believe.

KATE BOLDUAN, CNN ANCHOR: Breaking overnight, Israel strikes back pounding dozens of Hamas targets from the air after the three missing Israeli teenagers are found dead. Israel's prime minister vowing to make Hamas pay. We are live with the latest.

MICHAELA PEREIRA, CNN ANCHOR: Super soaker. The first named storm of the season forming right now off the East Coast set to make a miserable holiday for tens of millions as the vicious system moves through the Midwest. Look at these lightning strikes at the Willis Tower.

CUOMO: Your NEW DAY begins right now.

ANNOUNCER: This is NEW DAY with Chris Cuomo, Kate Bolduan and Michaela Pereira.

BOLDUAN: Good morning and welcome to NEW DAY.