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in the Midst of a Financial Crisis, Greek Leader Sending Mixed Messages; Several Major Airlines Under Investigation for Conspiring to Keep Ticket Prices High; Captured Fugitive Speaking Out About Brazen Prison Break. Aired 2-3a ET

Aired July 2, 2015 - 02:00   ET

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


[02:00:00]

(COMMERCIAL BREAK)

NATALIE ALLEN, CNN ANCHOR: In the midst of a financial crisis, Greek leader send out mixed messages.

ERROL BARNETT, CNN ANCHOR: Several major airlines under investigation for possibly conspiring to keep your ticket prices high.

ALLEN: And in New York, the captured fugitive is speaking out about his brazen prison break.

BARNETT: Hello, everyone. I'm Errol Barnett. A big welcome to our viewers in the U.S. and those watching around the world.

ALLEN: I'm Natalie Allen. You're watching CNN NEWSROOM.

And thanks for joining us. It is 9:00 A.M. in Greece where the country is just three days away from a referendum on its financial future.

BARNETT: Yeah, a very big deal. But the present is also difficult for many people. You are looking at live pictures now from outside a bank in Athens. People lining up trying to get their money, we believe these are -- what you describe as pensioners and, you know, folks who have retired who have an income to live off of. And we saw similar pictures this time yesterday.

There was a great deal of confusion and uncertainty about what is going to happen in Greece over the next few days. The government has implemented strict withdrawal limits to try and stop banks from running out of cash. That has brought the financial sector to a grinding halt.

ALLEN: And Prime Minister Alexis Tsipras is urging people to vote "No" in Sunday's referendum on whether to move forward with the terms of the European bailout plan. That's a 180-degree change from earlier Tuesday when he told creditors, Greece would agree to nearly all of their bailout conditions.

The Greek finance minister says he hopes a new deal will happen by Monday. (BEGIN VIDEO CLIP)

YANIS VAROUFAKIS, GREEK FINANCE MINISTER (through translation): We are prepared to accept even strict measures as long as the frame work in which they're contained are sustainable as far as growth. So Greece can grow and Grexit disappears so we are not in the same situation in a few months.

(END VIDEO CLIP)

BARNETT: CNN's Isa Soares is following the latest twists and turns, joins us now live from Athens.

And Isa, yesterday, you were basically telling us there's a fair amount of confusion among Greeks because they're not sure what this referendum is about. And now you got the prime minister telling the people to vote "No" but if the rallies were -- example more people are likely to vote "Yes," but to what, exactly?

ISA SOARES, CNN CORRESPONDENT: Yeah, a very good question. Good morning to you. There is so much uncertainty at this moment and then so much confusion given the fact there has been so -- there's been a bit of a flip-flop, let's say with the prime minister, at least that's what's being perceived as. He first said, he asked he didn't want to a deal, he didn't want to agree to any terms the deal by the Euro group that's been set out by Jean-Claude Juncker.

Then he made a massive U-turn Errol saying we'll accept pretty much all of the terms of the deal was one or two exceptions.

[02:05:05] And now you had to look at what he's proposing. And to be honest it's just a couple of delays here and there.

But pretty much sticking to whatever Juncker had proposed a week ago. So in one hand people are furious because if you made that decision. And last week, he would have still had the bailout, would have continued, and he would have kept the $2 billion or so that was left of the old bailout before requesting a new one.

So the people in the "Yes" camp Errol, they will say, you know, he has wasted time, he's not handling the crisis well. And those in the "No" camp will say, well I think he has played very tough game with Europe and that's exactly what he should have done. They are proud, they stood up to their dignity.

In terms of your question, what exactly they are voting for? Or many don't know. When I asked them yesterday whether they understood the new question that we put to them regarding the proposals many said to me it doesn't matter the question really is about whether they want to stay in the Euro or the drachma which is exactly what Matteo Renzi, the Italian Prime Minister any much of Europe has been saying that is a question should be asked, Errol?

BARNETT: And Isa, we should note, that while you are speaking we're look at these live pictures once again of folks in Greece lined up. Today, the scene is more patient than what we saw yesterday. They are patiently waiting to access banks.

We know these capital controls are in place this week until Sunday's referendum. But I'm just wondering Greeks under the impression that they will still have these restrictions even after the referendum? I mean what comes after Sunday?

SOARES: And I think that is the problem. I think many are nervous. I mean someone was saying, what are Greeks doing with their money, are they spending out? I don't think the majority of Greeks is spending their money those 60 Euros they take out all 120. If you're a pensioner, you -- the majority of them are taking them out and saving it, really and trying to prepare for what may come because like you said they just don't know. Especially in light Errol that the ECB, the European Central Bank, came out yesterday saying they're not going to raise the Emergency Liquidity Assistance the ELA.

As, you know and our viewers know they have been throwing money into the Greek banking system. But they said yesterday they are going to keep the level as it is. They would now keep the level as it is, they won't raise it because until the referendum and I think that raises a lot of questions.

Another important point is that any sort of deal that is done at least coming from Europe and what we have had from madam -- the chancellor of Germany, Angela Merkel she said it would have to include the IMF. But we heard from the IMF yesterday Errol.

And Christine LaGarde speaking to Richard quest said, you know, it would any sort of deal they would have to pay what they owe first of all.

Take a listen to what she had to say about needing more adults in the room.

(BEGIN VIDEO CLIP)

CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND: Given the level of uncertainty, confusions and constant movement, and I think a bit more adulthood would still be needed, yeah.

(END VIDEO CLIP)

SOARES: And that question was more towards the fact that she said a couple weeks ago that there weren't adults in the room and it's been frustrating, she said really hinting at the fact that it's been hard to reach any sort of negotiations.

And Europe seems to be wanting that referendum to go ahead and if it goes the no way the feeling is that perhaps, Alexis Tsipras, the prime minister, will have to step down. That is what he is hinting at. And that perhaps is making negotiations easier with the next government, Errol?

BARNETT: And Christine LaGarde is typically quite reserved and muted. So if she's willing to say something like that publicly, it makes you wonder how contentious the talks have been behind the scenes with so many big, important issues. But it really is a mess there.

Isa Soares, live for us this morning in Athens.

Natalie?

ALLEN: Global markets seem to be taking the ups and downs of the Greek debt crisis in stride so far, right now. But traders are still of course monitoring developments quite closely. Here's the take of two analysts.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MARKET ANALYST: They both know and markets open in turmoil again, how is Europe going to resolve this situation? How are they going to help Greece restructure and organize an orderly exit from the Euro? And markets I think are deeply concerned that this could get very, very messy.

UNIDENTIFIED MARKET ANALYST: They still want from what I gather some debt restructuring and that remains a sticking point, seeing after these months of negotiations.

Greece still thinks that we have too much debt. We just need to write some of it down and then we'll be able to grow on the other side, the ECB, the, E.U., the IMF still think, nope, we are not writing down any more debt. You still have to do the hard work.

(END VIDEO CLIP)

ALLEN: Kind of a sit-and-wait mode there with many traders. Calm before the storm, perhaps, views there of two London traders.

BARNETT: But nothing is getting resolved in Greece any time soon.

[02:10:00] So we'll update you on what happens there in the hours and days ahead.

For now we turn to the U.S. Justice Department. It is investigating several American-based airlines for possibly working together to keep ticket prices high.

ALLEN: Yeah, the department sent out subpoenas Tuesday.

CNN's Rene Marsh has the latest.

(BEGIN VIDEO CLIP)

RENE MARSH, CNN AVIATION & GOVERNMENT REGULATION CORRESPONDENT: Well we can confirm that United, American and Southwest Airlines have all received demand letters from the Department of Justice.

The feds are asking several major airlines for documents and communications that could prove they worked together to manipulate capacity of flights, in other words, limit available seats, keeping planes full and ticket prices high for consumers. Now consumer advocates have been suspect of the major airlines because they say multiple airline mergers means less competition and higher prices for consumers.

Right now, four major airlines control 80 percent of the market.

But specifically what sparked this federal investigation was a letter from Connecticut Senator Richard Blumenthal. He asked DOJ to investigate after learning about public comments airline executives made at an industry conference.

In One instance Blumenthal says Southwest Airlines CEO announced plans to expand capacity for flights, which many in the industry believe meant air fare cuts were next.

Southwest CEO came under fire from others in the industry and had to quickly reassure investigators that the airline wasn't going rogue. The Senator saying that was one example that suggested industry collaboration.

Now the airlines we have heard from, they all say they plan to cooperate with the investigation, but the allegation alone is a bitter pill for passengers. The four major carriers saved billions combined on fuel, they've and made millions and millions of dollars on baggage fees, and yet prices for consumers it remains high.

Reporting in Washington, Rene Marsh, CNN.

(END VIDEO CLIP)

BARNETT: Now investigators in Taiwan have released their findings in February's crash of TransAsia flight 235. Transcripts of the cockpit voice recorder show complete confusion after one of the planes engines lost power. The pilot then shut off the only working engine by mistake.

ALLEN: The transcript indicates the crew discovered the error far too late to get the engine working again. 43 people died in that crash. 15 people survived.

BARNETT: Now U.S. Presidential Candidate Donald Trump's controversial comments about immigration are costing him yet another business partner.

ALLEN: Yes, his Macy's says it is cutting ties with Trump, phasing out his line of menswear from its nearly 900 stores.

The chain says the billionaire's comments portraying some immigrants as, "Killers are rapists" are inconsistent with the company's values.

Meantime, New York Mayor, Bill de Blasio, says he is reviewing any contracts the city may have with the candidate's companies including Trump golf course in the Bronx that opened earlier this year.

BARNETT: And Donald Trump is not backing away from those statements that led to company after company dropping him. Coming up later in this hour, our Don Lemon gave Mr. Trump a chance to clarify his comments. We'll let you decide if he made his position any clearer.

ALLEN: And also ahead here, a U.S. prisoner caught after an elaborate escape is filling details to police. Why he said he grew tired of his fellow escapee.

BARNETT: And you will hear a first-hand account of Tunisia's terrifying beach attack and one man's heroic efforts to try to help.

Stay with us.

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[02:15:00]

DEREK VAN DAM, CNN METEOROLOGIST: Good day I'm CNN meteorologist Derek Van Dam with a quick look at your weather watch across mainland Europe. We have been smashing record high temperatures across many locations including Paris.

We had the hottest recorded temperature ever on Wednesday. That was 39.7 degrees. Even London getting extremely hot as a ridge continues to build in this region and there's just some really pesky high pressure system to the east coast really preventing things from cooling down.

However the U.K. does have slightly cooler weather in the forecast which we'll show you in just one second.

Look at here 36.7 degrees on Wednesday that was the hottest July day in the United Kingdom's history.

Now here's that cooler weather forecast with the chance of showers as a very weak cold front edges across the United Kingdom. 27 and you can still see however the heat will continue for places like Paris, Madrid as well as Rome stay well above average for Paris we should be about 22 degrees and you can see day time highest maxing out in the middle 30s and with all of these heat in the atmosphere we have the possibility of stronger storms for the northeastern sections of France was, Amsterdam and into Belgium, large hails, severe wind gust.

And we can't roll up the possibly of an isolated tornadoes. Well hot weather and sunny conditions across the Middle East and fairly tropical over Northern Africa.

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BARNETT: Welcome back. Let's get you the latest information on the terror attack on a Tunisian beach.

A court spokesman says seven Tunisians are under arrest and investigators are trying to determine if the gunman had accomplices.

ALLEN: Yes, while many tourists were fleeing for their lives, some resort staff heroically tried to stop the shootings.

CNN's Nima Elbagir spoke with one man who tried to help.

(BEGIN VIDEO CLIP)

ALI LADHARI, BEACH RESORT WORKER (through translation): We went and covered up the tourists that died, God rest their souls, and waited, terrified in complete chaos.

NIMA ELBAGIR, CNN CORRESPONDENT: These are the pictures that Ali Ladhari took as he and his friends waited for police to come.

They tried, he says, to give the victims back their dignity, to shield them as best they could.

LADHARI (through translation): He said, he have a gun, help us.

ELBAGIR: This was the first shout Ladhari said he heard. He watched as the woman fell to the ground. Ladhari works at a beach shack renting jet skis and parachute willing to tourists, the day that Seifeddine Rezgui opened fire in the beach had been like any other until of course it wasn't.

LADHARI (through translation): When we men run towards him, he said I don't have any issue with Arabs. My targets are the Europeans, we're just tourists.

ELBAGIR: So, when you heard this I asked, did you keep coming?

LADHARI (through translation): We moved quicker. We couldn't leave him. Yes, we were scared, terrified with we couldn't back off.

ELBAGIR: Many Europeans terrorist caught in the chaos that they have spoken about the bravery of local Tunisians. In this amateur footage, you can hear the cameraman and others rushing against all instinct toward the shooter.

Desperate to stop the rampage but of course, they couldn't.

Ladhari says for many of the victims that day, all he could do was keep them company in their last moments.

One British grandfather died in his arms.

LADHARI (through translation): He asked me, is my wife dead. I checked her pulse.

[02:20:03] I said, yes, she is. He did this, "Thank you, God." And cried and died. I can't say anything more. He thanked God that she hasn't suffered.

Like that, thank you God, thank you God, and cry, and dead.

ELBAGIR: He shows us where the killer jammed the butt of the machine gun. As Ladhari says, he tried to protect them.

As he lay on the ground he tells us he watched as a little boy was shot at point-blank range, the shock, the horror.

Speaking to Ladhari, you can see it hasn't left him.

I asked if he ever found out the name of the British man who died in his arms. No.

As people around the world struggle to understand why, Ladhari says he wishes he had answers.

LADHARI (through translation): He killed them. He destroyed them. And he destroyed us with them.

ELBAGIR: Nima Elbagir, CNN, Sousse.

(END VIDEO CLIP)

ALLEN: Very brave and heroic Tunisians there.

Well, Egypt's military says it is 100 percent in control after militants attacked five posts. At least 17 soldiers were killed and more than 30 wounded in the northern Sinai.

For more now, Jomana Karadsheh joins me from Amman, Jordan.

Hello, Jomana.

JOMANA KARADSHEH, CNN CORRESPONDENT: Hello, Natalie. And according to security officials in Egypt, they describe what unfolded in the northern Sinai yesterday as unprecedented, something that this region had not seen. They say about 300 militants launched simultaneous attacks on at least five military check points in the area using car bombs, using other types of weapons.

And we later we saw ISIS' affiliate in the area, the state of Sinai, claiming responsibility for what it said were attacks on 15 check points using also at least three suicide bombers, they say.

Now the assault was focused on the town of Sheikh Zuwaid this is about more than 200 kilometers from Cairo, very close to the Egyptian/Gaza border.

And what we heard yesterday from eyewitnesses on the ground, people on the scene, they say the area was turned into a battlefield. Civilians were stuck in the middle of what it is being described as something this region has not seen since the Arab-Israeli wars of the 1970s.

The military used air strikes in the area. And as you mentioned in the evening they said that the area was under their full control, killing 100 militants they said and 17 troops were killed in this attack. But we could expect it to rise as the dust settles from this battle, Natalie?

ALLEN: Yeah and Jomana you mentioned history as far as how severe this attack was. There have been attacks by ISIS in the past in Sinai. More specifically how is this different this time? KARADSHEH: Well, Natalie, the Egyptian military has been struggling with this insurgency in the Sinai region in northern Sinai for a while now and it's really intensified over the past couple of years. And this group Ansar Beit al-Maqdis that pledged allegiance to ISIS back in November has also attacked the security forces in the area several times.

So this is not something new. But experts who are look at this situation say that this kind of sophistication, coordination, simultaneous kind of attack that we saw yesterday is very worrying and could signal the start of a new campaign, new tactics there.

It's really unclear at this point what the goal was of this assault, Natalie, whether they were trying to gain control of this town of Sheikh Zuwaid or drive the military into this kind of urban warfare that we saw unfold, whatever it is, real concern about what is going on there and whether the military's campaign is actually working.

ALLEN: Yes, another avenue where ISIS rears its head.

OK, Jomana Karadsheh, with that story for us. Thank you for your report from Amman. Errol.

BARNETT: Natalie, federal authorities say they are taking a closer look at a series of fires at black churches in the southern U.S. On Tuesday, Mount Zion African Methodist Episcopal Church in South Carolina was the latest to burn.

Now investigators believe this specific fire may have been caused by lightning.

On Wednesday, U.S. Attorney General Loretta Lynch spoke out about the series of recent fires.

(BEGIN VIDEO CLIP)

LORETTA LYNCH, U.S. ATTORNEY GENERAL: The still (ph) recent tragic burnings of the predominantly black churches that are been happening really throughout the south and even the midwest and in our own state of Charlotte, we recently had an incident there.

And we don't have the full details about those but I want you to know that those also have our full attention and that this is a serious issue that we will be addressing with the appropriate care and we will see where those matters lead us as well.

(END VIDEO CLIP)

[02:25:10] BARNETT: Investigators say there's no evidence of hate crimes in the recent church fires. However they do believe two of them may be arson.

ALLEN: A U.S. prisoner who escaped from a New York facility tells officials he grew tired of his fellow escapee.

BARNETT: Yeah, a law enforcement source says David Sweat told investigators that Richard Matt was out of shape, couldn't keep up and apparently drank a lot once they escaped.

CNN's Kyung Lah has more.

(BEGIN VIDEO CLIP)

KYUNG LAH, CNN CORRESPONDENT: After two days of questioning David Sweat in a lockdown section of Albany Medical Center, investigators say they have heard enough for now.

Sweat telling investigators escaping with Richard Matt wasn't as complex as you might think. Using only hacksaws to cut through cell walls and a steam pipe they slipped out of their cells night after night, finally finding an underground passageway. There came across a sledgehammer, likely left by a construction worker, breaking down a brick wall to make their way out. Sweat tells investigators the escapees first tried one manhole in a dry run but it was too close to a neighborhood.

ANDREW WYLIE, CLINTON COUNTRY DISTRICT ATTORNEY: They felt due to the, there being a number of houses in that area that it might not be a good spot to exit from.

LAH: The next night, they tried again. Finding a more isolated manhole where escapees were to meet Prison Tailor Joyce Mitchell.

Sweat said while he was the mastermind, it was Mitchell's idea for the men to kill her husband before fleeing to Mexico. Mitchell's attorney said she denies that allegation. When Mitchell didn't show up, Matt and Sweat headed towards Canada.

As the intense manhunt through the dense woods dragged on, Sweat says he grew frustrated with Matt because he was out of shape and couldn't keep up. Sweat says the two went their separate ways after Matt broke into a cabin and started getting drunk.

It was after the two split up that Sweat had his closest call with being caught. The district attorney tells ABC News, Sweat was hiding in a hunting tree stand as an officer walked past him.

Sweat says while on the run he learned officers had killed Richard Matt and pressed on to the Canadian border until a state police officer shot and wounded him. He is now Albany Medical Center in a lockdown section only for prisoners.

DR. DENNIS MCKENNA, MEDICAL DIRECTOR, ALBANY MEDICAL CENTER: How confident do we feel this patient is not going to escape from the hospital? I feel very confident.

LAH: The hospital's medical director says in this lockdown section of the hospital, two guards watch each patient, inmates are often shackled. A jail within a hospital.

MCKENNA: There's a door that opens and closes. There's the sound of the rattling of the cage, the turning over the wallet and your keys. So, you know, you can't help but feel this is a different unit. Once you get to the patient room, it is about taking care of the patients. Kyung Lah, CNN, Albany, New York.

(END VIDEO CLIP)

BARNETT: All right still to come, losing patience with Greece over its debt crisis.

Next, one European leader says the Greek government needs to start acting like adults.

ALLEN: Plus, as nuclear talks drag on in Vienna, Iranian businesses are coping with sanctions and hoping for a deal. We'll have the latest for you just ahead here.

(COMMERCIAL BREAK)

[02:30:00]

BARNETT: All right, you stayed with us. Welcome back to those of you watching in the states and from all around the world. I'm Errol Barnett.

ALLEN: And I'm Natalie Allen. Thanks for staying with us. We want to update you on our top stories this hour.

Greek pensioners are lining up yet again outside banks today hoping to get their hands on cash. There is confusion and uncertainty ahead of Sunday's referendum on the country's financial future. Prime Minister Alexis Tsipras urging voters to reject a European bailout deal.

BARNETT: Investigators in Taiwan have released their findings in February's crash of TransAsia flight 235. They say the plane's pilot accidentally shut off the only working engine after the other lost power. 43 were killed in this crash.

ALLEN: Strong storms are sweeping the Midwest region of the United States causing downed power lines and flooding. At least one tornado was spotted outside Kansas City, Missouri, but there are reports of more.

We're hearing of heavy structural damages people are being told to seek shelter, so far, no serious injuries to report to you.

BARNETT: Now European leaders are clearly losing patience with Greece over its ongoing debt crisis.

European Council President Donald Tusk says Europe wants to help Greece but we can't help anyone against their own will.

ALLEN: And IMF Chief Christine LaGarde, says, given the level of uncertainty and constant changes, a bit more adulthood that was her word is needed.

She spoke with CNN's Richard Quest.

(BEGIN VIDEO CLIP) CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND: Once a country is in arrears with the fund it cannot receive funding.

So the IMF cannot finance Greece for as long as it is in arrears basically the fund. So we will continue a dialogue because I think it's important. I think it matters that we stay engaged. I'm particularly concerned about the development of the situation, in care, I am concerned about the people who are taking the suffering of this whole situation. So we will stay engaged, we are this is the e mission of the fund.

(END VIDEO CLIP)

ALLEN: Let's bring in yet again CNN's Emerging Market Editor, John Defterios, he joins me live from Abu Dhabi.

And John, it seems quite clear from Christine LaGarde's comments there the creditors are shall we say frustrated by Alexis Tsipras and his team.

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Yeah, I mean I would say. And Natalie that may even be an understatement.

We have three creditors behind the Greeks, the so called Troika, the International Monetary Fund, the European Union and the European Central Bank. And in the last 24 hours, we basically heard from them that they're not going to do anything in Greece in the near term.

The IMF says they can't help because the Greeks are in arrears of $1.7 billion, the first time an industrialized country has done so. The European Union, the president of the Euro Group the groups that shares their currency said the political context is not right. They find way too much certainty to intervene because of Alexis Tsipras. And even the European Central Bank, which tries to stay out of the politics, but they did not increase the emergency liquidity to Greece.

[02:35:05] So the banks in Greece are suffering, you can see that their reserves are dwindling right now.

Alexis Tsipras did make a U-turn, basically agreed to come along to the creditors' requirements, but at the same time he's asking for $32 billion, a third bailout for Greece. And then lo and behold he says, let's vote no on the referendum. And one of the conditions to get that money is to say, yes.

So you can see where we are today. The creditors are saying, hold on here, what's the next turn in the next 24 hours from the Greeks.

ALLEN: Exactly. Despite Mr. Tsipras caving in, agreeing to many terms in the bailout package, German's Chancellor Angela Merkel has said nothing will happen until after the vote Sunday. No fresh money. Why such a hard position?

DEFTERIOS: Well she has been leading this chorus, Natalie, saying we should wait for the referendum to take place on Sunday because the European Union feels blind sided by that referendum by Alexis Tsipras. They didn't see it coming. They put an offer on the table and he rejected that offer initially and then said I'll put a vote to the people. Now he's agreed to the package but still saying, let's vote no.

Now her comments were made at the closing session of the Bundestag, the parliament in Germany. And at the same time she said Europe is stronger than ever, we're more united than ever. And this would have raised eyebrows in Greece and in fact for the last six month, since Mr. Tsipras came to office, Greek media runs all the comments from Germany and particularly all the comments from Mrs. Merkel, but they have been frustrated by this membership of the Euro and particularly austerity.

And let's just take a look at one measure and I'll show you why. And that's the unemployment rate. And all of southern Europe, and for that matter is suffering quite badly.

Look at the unemployment rate in Greece, 25 percent. Spain, 22 percent, even Italy which is a much bigger economy suffering from 12 percent unemployment right now.

So what is this meant for the average Greek? This is a quite a shocking number. The average family that in the last five to six years has seen their average annual income go down by $10,000.

So Mrs. Merkel is speaking of a German unity on the Euro, in the northern half of Europe. But the southern half of Europe is suffering. And that's why they take exception to the comment saying that Europe is more united than ever. It's quite painful in the south. And austerity has certainly not done well for the Greeks and that's why they are in the situation they are today.

ALLEN: All right, we'll wait and see the next move from Alexis Tsipras, won't we?

John Defterios, in Abu Dhabi. Thank you, John.

DEFTERIOS: Thanks.

BARNETT: A simple exchange of letters was all it took on Wednesday to end 54 years of broken relations between the U.S. and Cuba.

An American diplomat delivered a note from President Barack Obama to Cuban officials in Havana offering to restore ties. It came after several months of talks between the long hostile countries.

In Washington, Mr. Obama said that the American people will welcome the new friendship.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We are neighbors and now we can be friends.

Here in the United States, we have seen that same enthusiasm. There are Americans who want to travel to Cuba and American businesses who want to invest in Cuba, American colleges and universities that want to partner with Cuba. Above all Americans want to get to know their neighbors to the south.

(FOREIGN LANGUAGE)

(END VIDEO CLIP)

BARNETT: And that was the moment, on Cuban television that a newscaster read Cuban President Raul Castro's reply, accepting Mr. Obama's invitation.

U.S. Secretary of State John Kerry said he'll travel to Cuba this summer to help reopen the American embassy there. Cuba plans to open its mission in Washington July 20th.

Now the move doesn't lift the U.S. economic embargo against Cuba. But Mr. Obama on Wednesday called on the U.S. Congress to do exactly that.

ALLEN: The head of the International Atomic Energy Agency is in Tehran to meet with Iran's president.

Their discussion, will likely address cooperation between the watchdog group and the country on issues related to Iran's nuclear program.

This comes as six world powers and Iran continue negotiations in Vienna to hammer out a long-term nuclear deal. Their talks have been extended through next Tuesday.

BARNETT: Now a former Israeli president is voicing his support of the United States as it negotiates with Iran.

ALLEN: Shimon Peres says he has faith in President Obama during this process. Listen to what he said in an exclusive interview.

(BEGIN VIDEO CLIP)

SHIMON PERES, FORMER ISRAELI PRESIDENT: And I think now it's about the nature of the verification of the inspection to make sure that what they have promised and people are skeptical about their promises will really be accepted by them fully.

I don't think that the president will compromise on it. I think as a president keeps his words to this very day. He said Iran should not become a nuclear country and that's the essence of the negotiations and their options are open.

[02:40:10] But he wants the nature to have negotiations without blood.

(END VIDEO CLIP)

BARNETT: Now as the nuclear talks go into overtime, the Iranian people are hoping for a deal that will provide fast relief from economic sanctions.

ALLEN: Yes, and they would like it sooner than later.

CNN's Fred Pleitgen shows us how those penalties have crippled country's businesses.

(BEGIN VIDEO CLIP)

FRED PLEITGEN, CNN CORRESPONDENT: This song, a single tirade against the U.S., the lyrics accusing America of imperialism and human rights abuses, ending in the typical chants of "death to America."

This rally by hard-liners in Tehran is meant to show support for their nuclear negotiations team.

"Our negotiators are very honest and we believe in them," this woman says, "but I'm not very optimistic that a deal can be reached."

They put up banners at Tehran's main monument with signatures and demands. No inspections at Iran's military facilities and immediate sanctions relief.

An end of sanctions is what most Iranians want to jumpstart their ailing economy.

We visit this car parts factory outside Tehran where the equipment is more than outdated.

This machine was built in the Soviet Union about 30 years ago. And even the company that makes this machine has told the Iranians they can't give them more spare parts because of the sanctions. They are hoping it doesn't break down and try to make smaller parts themselves.

But nuclear technology is also a matter of national pride in Iran and a majority believes that using it for civilian purposes is their right.

"Iran is a superpower itself and we will not accept any pressure," this man says, and he adds, "We're looking for peace and a good deal but not a deal at any price."

Iran's Supreme Leader Ayatollah Khomeini, says he supports the negotiations but remains skeptical that a deal can be reached. Tehran is willing to walk away from the talks if its red lines are crossed says Mohammad Marandi of Tehran University.

MOHAMMAD MARANDI, TEHRAN UNIVERSITY: What Iran wants as an agreement that is fair that respects Iran's sovereignty, that respects Iran's dignity but at the same time, the Iranians are willing to give and take.

PLEITGEN: Giving and taking will be essential on all sides involved if a nuclear deal is to be achieved.

Fred Pleitgen, CNN, Tehran.

(END VIDEO CLIP)

BARNETT: All right still to come here on CNN NEWSROOM, England are heading home after what was a heart-breaking semifinal loss.

Coming up, the miscalculation that cost the team a trip to the final of the women's World Cup.

(COMMERCIAL BREAK)

[02:45:00]

ALLEN: Well have you seen it, the shot? I haven't seen it yet.

Japan is on its way to the women's World Cup final after a shocking and heart-breaking defeat for England in the semifinals.

BARNETT: Now here's how it went down the 2 to 1 victory came after England defender Laura Bassett accidentally kicked the ball into her own teams net in the 92nd minute.

She meant to send it out of bounce but the ball hit the underside of the crossbar and touch ground, roll, pass the goal line. She collapsed. She was crying for as much time as the cameras were on her after this happened.

Japan will now face the U.S. on Sunday in a rematch of the 2011 championship which Japan won 3 to 1.

ALLEN: The poor thing. You were saying that her teammates were rallying around her.

BARNETT: Oh, yeah because they said they wouldn't have made it to where they were if it wasn't for her.

ALLEN: If it weren't for her. OK, well we wish her well in getting over that.

Well now to Wimbledon where the grass may not be wilting but the fans certainly are.

BARNETT: Wednesday apparently was a record-setting day there for the heat. The temps sort to nearly 36 degrees Celsius scorching spectators and even causing apparently ball boy to collapse during a match.

ALLEN: If the ball boys are going down, Pedram, they're in shape, my goodness.

Let's talk about the heat at Wimbledon.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Yeah, you know, 36 that's almost 100 degrees Fahrenheit. And people think about this, it is very hot but when you think about it, you're watching us in Arizona or in parts of the U.S. where it gets extremely hot. You're thinking a 100 degrees Fahrenheit is not too bad but the human body physiologically reacts very differently depending on what part of the world you're in and if you're acclimated to it.

So you think about people that lived at high altitudes their body produces more blood cells so they able breathe easier at those altitudes. And then people in hotter conditions, hotter climates, their sweat concentration, the salt concentration is different they sweat more readily as well.

So its little things like that that you don't think about, you just think about the number but it impacts different people in different parts of the world.

(CROSSTALK)

BARNETT: The ball boy could not handle it.

JAVAHERI: The ball boy couldn't handle it. Absolutely not.

So we'll touch on it if the extreme keep here, because these temperatures in London, in Heathrow, 36.7, which is 98.6 degrees Fahrenheit. Hottest July day in U.K. history, when you break out the number is altogether. 38.5 degrees that's the all time single hottest location that was in Kent back in 2003 amidst the tremendous heat wave that took with it 70,000 lives across the continent.

But Paris made it up to nearly 40 degrees Celsius. They have kept records here since the 1870s across Paris and across France at least. And the temperatures there the second hottest, the last time it was this hot was back on July 28th 1947 when they cracked at 40 degree mark which is 104 Fahrenheit if you're toeing with that skill. But the color contour, I'll show you, the orange color because that's where the tremendous heats in place the forecast shows.

Notice the U.K. they get into the green, the shading there cooling it off a little by Saturday the heat returns. But from central Europe from Paris to Berlin, the heat is not going anywhere any time soon. And that's a concern because this is 15 to 20 Celsius above normal for few locations so may get up to 37 on Friday.

It cools off a little bit. And you notice the trend here, keeps it above normal in the coming couple days. So this is something that again is very, very dangerous because the accumulative effect of the heat can certainly wear down on people. And one, two, three days of temperatures are on to 37 to 40 degrees, hits the 100ths Fahrenheit is not going to kill anyone typically but then you have it for five, six, seven days and all of a sudden people start losing their lives to the extreme conditions.

BARNETT: So it will be a bumpy couple of days. This should last how long?

JAVAHERI: Another three to five days for parts of central Europe, yeah.

ALLEN: All right, thanks, Pedram.

BARNETT: Thanks, Pedram.

ALLEN: Well you got to ask how much more heat can Donald Trump take?

BARNETT: Nice transition, Natalie.

ALLEN: He is gaining ground, in our latest election poll but he has lost more business partners. Ahead, here what he told our Don Lemon about getting dumped by Macy's.

(COMMERCIAL BREAK)

[02:50:00]

ALLEN: All right welcome back. He is loud. He is brash. He is Errol Barnett.

BARNETT: I was going to say me? Come on?

ALLEN: He is the Donald. But I haven't called him Donald anymore.

Donald Trump is unapologetic.

BARNETT: And he was in fine form speaking with our Don Lemon on Wednesday.

Don Lemon spoke with the U.S. presidential candidate about his claims that "rapist and killers" were migrating over the nation's southern border.

Don also asked Trump about the numerous companies who have chosen stopped doing business with him.

Let's listen.

(BEGIN VIDEO CLIP)

DON LEMON, CNN ANCHOR: Let's talk about Mexico. And you did mention NBC not being happy. They cut ties with you yesterday -- today because of your comments about Mexican immigrants, another company...

DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: Because they're weak, you know what, they cut ties because they are weak.

LEMON: Who NBC, you think?

TRUMP: And it's very sad to see. But that's it because I'm talking not about Mexico. I'm talking about illegal immigration. It has to be stopped in this country.

LEMON: OK.

TRUMP: It's killing our country. People pouring in -- Don people are pouring over the borders, pouring. We have incredible border patrols. These are incredible people and they're instructed they can't do anything.

[02:55:00] People are pouring in to the United States. I guess some come from Mexico but they come from all over the world. By the way, they come from the Middle East. We don't even know where they come from.

LEMON: Why did you have to say that they are rapist, though, Donald?

TRUMP: ... and it's resonating with the voters. LEMON: Why do you have to say they were rapists, so Donald?

TRUMP: Who's racist?

LEMON: No, rape -- no, no, not racist, no why do you have to say they were rapists?

TRUMP: Oh, well if you look at the statistics -- All people come -- I didn't say about Mexico, I say the illegal immigrants. If you look at statistics on rape on crime, on everything, coming in illegally in to this country, they are mind boggling. If you go to "Fusion," you will see a story about 80 percent of the women coming in. -- I mean you have to look at these stories. And you know who owns "Fusion"? Univision. That was in "The Huffington Post." I said let me get some of these articles because I have heard some horrible things.

I deal a lot of talking with people on the border patrols. They are incredible people.

LEMON: I want to get some clarification.

TRUMP: No, but Don, all you have to do is go to Fusion and pick up the stories on rape and it's unbelievable when you look at what is going on. So all I am doing is telling the truth.

LEMON: I have read the "Washington Post." I read the "Fusion." I read "The Huffington Post." And that's about women being raped. It's not about criminals coming across the border or entering the country.

TRUMP: Well somebody's doing the raping, Don. I mean, you know, what -- I mean somebody's doing it. It is women being raped, well, who's doing the raping? Who's doing the raping, I mean how can you say such a thing?

So that's -- look, the problem is you have to stop illegal immigration coming across the border. You have to create a strong border, Don. If you don't we don't have a country.

LEMON: I want to get this Macy's in there because Macy's cut ties with you today. They took their stuff off the shelves. And here's part of the statement. It says, "Macy's stands for diversity and inclusion. We have no tolerance for discrimination in any form. In light of the statements made by Donald Trump, which our inconsistent with Macy's values, we decided to discontinue our business relationship with Mr. Trump." How do you respond to that?

TRUMP: They folded under pressure, you know, It's not a big business for me. It is small, ties and stuff. And -- but if they folded under pressure.

(END VIDEO CLIP)

ALLEN: Well Despite all of this, some likely voters seem to appreciate Mr. Trump's outspokenness.

BARNETT: That's right now these things do change over time but the latest CNN/ORC poll shows Donald Trump in second place of all the Republican candidates. He trails Former Florida Governor Jeb Bush by about seven points.

ALLEN: All right, we were going to move to the issues Trump was talking about to food.

BARNETT: Important issues.

ALLEN: Yes.

To the recipe recommendation that sparked an impassioned debate on social media. It all has to do with guacamole, we all love our guacamole of course, the dip is made with avocados usually.

BARNETT: Well here's what happened. "The New York Times" committed what many foodist consider a culinary crime by suggesting a new ingredient for guacamole peas.

Online backlash was swift and spirited. Even President Obama weighed in against messing with the recipe.

ALLEN: And this from the Texas Republican Party. It tweeted, "'The New York Times declared war on Texas when they suggested adding green peas to guacamole."

BARNETT: All right now this is one of my favorite stories. This next video is about to make your heart race. A base jumper flies through a very tight hole in a wing suit, it is just 2 meters or 6.5 of this...

ALLEN: Uli Emanuele did the stunt for the camera company GoPro, which called it possibly the most difficult base jump ever. The daredevil says he spotted the hole three years ago and has been training to fly through it, I don't know how he do that but he does ever since. And thank goodness we're here to report, he made it through.

BARNETT: Awesome.

Thanks for watching, everyone. My weekend starts now. I'm Errol Barnett.

ALLEN: Going to do a little base jumping.

BARNETT: There you go.

(CROSSTALK)

ALLEN: ... avocado eating. I'm Natalie Allen. Join me for the next hour of CNN NEWSROOM. I'll be right here. See you soon.

(COMMERCIAL BREAK)

[03:00:00]

ALLEN: The back and forth over Greece's financial future.

We have CNN correspondents standing by with all the angles for you. A tragic homecoming as the remains of Britons killed in a terror attack in Tunisia arrive home.

And then live in Vienna were official are trying to hammer out a nuclear deal with Iran.

And heart-break for England a gut wanting finish for the women's World Cup semi-finals.

We will show you what happened.

And hello and welcome to our viewers here in the United States and around the world. You're watching CNN NEWSROOM. I'm Natalie Allen.

It's now 10:00 A.M. in Greece where pensioners have been lining up again today outside banks hoping to get their hands on some money.