People when it sank off ormoc city. Those rescues are happening right now. There have been about 50 rescues. Some 30 fatalityies. This rescue operation is continuing right now. We will continue to follow this on the philippine ferry capsized. New revelations flowing in from david sweat which could be key how he could have escaped from the maximum security prison prison. A Law Enforcement source says the captured convict says he was the mastermind of the breakout but richard matt weighed him down from the start. Sweat says the older inmate was out of shape and matt started to get drunk after they broke into a cabin. Sweat was frustrated so they split up. Authorities shot matt several days later. Lets get the latest from kyung lah. Reporter good morning, john christine. They concluded the interview with david sweat. It was easier to break out of the correctional facility than anyone could have imagined. Sweat detailing that he and his accomplice used hacksaws to get out of their jail cells and cut into the piping that they were able to slip in and out of their cells at whim. They made it to an Underground Passage way and they found a sledgehammer left behind by a construction worker. They used that hammer to get further out. They were able to do a dry run. Getting into one manhole. Rejecting that manhole thinking it was too close to houses. The next day, making the real run into a manhole popping out of a manhole that was less populated. Also sweat detailed that he was the mastermind it was Joyce Mitchell who had the idea of killing her husband. Mitchells attorney saying that simply is not true. Mitchell did not pick up the men so they tried to flee on foot to canada. Sweat telling authorities, he had a number of close calls. He was hiding in a tree as an officer walked right by him. He remains in the hospital this morning. He is under heavy guard from what the hospital tells us. He remains in fair condition. John christine. Kyung lah in albany. New changes underway at the prison. Clinton correctional has a new superintendent. Michael kirkpatrick, after two deputies were put on paid leave. Other changes, frequent checks of cells and catwalks. A new business setback for donald trump. He has been fired from nbc for painting mexican immigrants as rapists. Now macys is following suit. Although trump says he dumped them. Reporter there is more bad news for donald trump. Macys is ending the partnership after mounting pressure including an online petition that urged the company to dump trump. That petition got more than 700,000 signatures. The company is taking his merchandise off the shelves saying his disparageing statements is not of their values. He says he dumped them because his ties and shirts are made in china. This is continued fallout after the inflammatory comments. Here is what he had to say on cnn last night. They fold under pressure. Macys was unable to handle pressure. They folded like dogs. Reporter there you have it. Donald trump not backing down. Given the history, this is not the last we are hearing of the story yet. John christine. He never expressed concern that his shirts were made in china before this. Now he says this is going to be central part of his campaign. He will hold chinese to accountability for the moves. Nor did he explain how dogs fold. I did not know dogs folded. New issues for miss usa. Florida is bowing out. He was the last on the schedule to appear. Retired nfl running back emmet smith quit as a judge. Nbc and univision have pulled the plug on the telecast. The Officials Say it will go as scheduled streamed online july 12th. Happening now, new concerns over security about the fourth of july holiday. The fbi and Homeland Security and National Counterterrorism center say the threat level is much higher this Independence Day because of isis and the groups aggressive use of social media. The officials fear it could be inspired by the terrorists call for attacks during ramadan. Major cities like new york are deploying radiation detectors in waterways and in the air. Security officials are on the streets. This may be potentially the most complex counter terrorismterrorism overlay event ever. We had three coordinated attacks in france and kuwait and tunisia. Given the world situation, we wanted to put those layers of protection behind the regular patrol piece. Egypt facing an increased threat from isis. Isis militants hit five egyptian checkpoints. At least 17 soldiers killed. The latest attack comes two days after an assassination attempt. We have cnns Jomana Karadsheh with the latest this morning. Reporter good morning, christine. Egyptian Security Officials are describing this as an unprecedented attack to take place in the northern sainai region. They estimate about 300 militants launched the coordinated attack we saw taking place yesterday morning. They say that several check points were attacked using car bombs and different kinds of weapons. Isis affiliate in the area the sainai state claimed responsibility for the attack. They attacked 15 checkpoints. They used at least three suicide bombers in the attack. The assault was focused on a town called zuwait. It is 300 miles, but close to the gaza border. Thousands were trapped in the area and people residents there, described the situation as a battle field that lasted for hours. Ambulances and military forces were paralyzed. They could not reach the area because land mines were planned along the way. The Egyptian Military using air force as they carried out air strikes and the military in the overnight hours announced they are in 100 control in the area. They killed 100 militants. They say 17 Security Forces were killed in the operation. The death toll could rise as the dust from this battle settles. A lot of concern about what this actually means, christine, if this is a new phase of the insurgency in the northern sainai region. If this is a new tactic that will be used by isis to launch the sophisticated attack. Jomana thank you. New meaning set in vienna for john kerry as he tries to get a new nuclear deal with iran. This is important. He is seeking agreement on a plan for interviewing scientists and granting access to nuclear experiments. A new chapter with the United States and cuba. President obama announcing they will have full diplomatic ties can cuba after decades. The embargo will be lifted. The two embassies will open this summer and exchange ambassadors. So this could help the u. S. Improve the troubled relationship with venezuela. Reuters says this is the most extensive dialogue in years with venezuela. The president there, meduro has clashed. And Bernie Sanders drawing huge crowds. Some 10000 people at a Campaign Rally in madison. The all turning out to hear sanders over Hillary Clinton. They loved him in wisconsin. Sanders says large turn outs of Campaign Events have surprised him. This no doubt, is his Biggest Surprise yet and a lot of folks saying when you look at crowds like that it tells you Hillary Clinton is vulnerable from her left. Progressives want more. The number Hillary Clinton is talking about this morning is 45 million. The Campaign Reporting a record fund raising haul for the race. You can see the difference in styles. Major u. S. Airlines conspireing to keep ticket prices up. The Justice Department confirming they have been subpoenaed. We have latest on possible price fixing and the investigation into that. Several Major Airlines promising to comply with subpoenas. The Justice Department is looking into what it calls possible unlawful coordination among the air carriers to limit capacity and keep ticket prices high. The subpoenas rattling the stock market. Airline stocks tanked yesterday. Delta and jetblue and southwest down significantly. Lets get the latest from cnns rene marsh in washington. Reporter we can confirm united and Southwest Airlines have received demand letters from the department of justice. They are asking for documents that could prove they worked together to manipulate capacity of flights. In other words, limit available seats and keeping planes full and ticket prices high for consumers. Consumer advocates have been suspect of the Major Airlines because they say multiple Airline Mergers means less competition and higher prices. Right now, four airlines control 80 of the market. What sparked this issue is the letter from senator richard bloomenthal. He learned about it after comments executives made at a conference. At one case Southwest Airlines ceo announced plans to expand capacity for flights which many in the industry believed air fare cuts were next. The ceo came under fire in the industry and quickly reassure investors the airline wasnt going rogue. The senator saying that was just one example that suggested industry collaboration. The airlines we have heard from 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 made millions on baggage fees and prices for consumers remains high. Reporting in washington, rene marsh, cnn. Thank you, rene. A new shark attack. The victim was in his 60s. The man was attacked by a gray shark sevenfeet in length. He sustained bites to his rib cage and hip. The carolinas have experienced six attacks per year, but this year, the region has had ten. A suspect in custody in connection with setting the cvs on fire during the freddie gray riots. Baltimore Police CommissionerAnthony Batts says his fire caused over 70,000 in damage. The Severe Weather in the south and midwest could affect millions of people. Look at that. It looks like the wizard of oz. That is a funnel cloud along the kansas and missouri border. The air was heavy with that cloud of debris in the area. On the ground the damage was visible. The storm knocked out power to 150,000 homes and businesses. More Severe Weather in the forecast for the region. Lets bring in meteorologist Pedram Javaheri for the latest. Good morning, john and christine. Nice working with you again. The Severe Weather in southern missouri and arkansas. If your travel plans for fourth of july from little rock to memphis to nashville, some lightning strikes. A lot of rumbles. You look at the broad perspective. You look at the country and you look at kansas city to st. Louis. Pretty active storms. A lot of rainfall left behind. Flood warnings in place across missouri. Upwards of 4 to 6 inches in the region. Oklahoma city to nashville, this is the severe storm threat later this afternoon. The heavy rainfall is southern and eastern portions of tennessee before it moves to georgia. Thanks pedram. Nice working with you as well pedram. The United States will face japan in the world cup soccer final. Japan beat new england tuesday. 21. The winning score was an own goal. The defender put it in her own net accidentally. Felt so badly for her. This sets a rematch in the 2011 world cup. The japanese are the defending world cup champs. If you are tired this morning and feel bad, be glad youre not british. It is worse for them. It is heart breaking. I feel badly for her. All right. 19 minutes past the hour. Will greece leave the European Union deep in debt . What this means for the countrys future and what this means for markets around the world. Were live after the break. Greeces debt crisis rattling markets all week. You know investors are hoping greece and creditors will figure out a solution. There is no guarantee here. That is why stocks swung wildly. Now negotiations are on hold after a referendum vote on sunday. Just hours after the greek Prime Minister told oureuropean officials. When that sunday vote comes, no one knows what it is the greeks will be asked or the consequences of the vote. Better bailout or exit from the euro . Joining us to bring order to the chaos is isa soares. Here is what Christine Legarde said. So much confusion and movement. She thinks there needs adulthood needed in the conversation. That is a big dig at the greek government and their moving position. Reporter oh, absolutely christine. Not the first time we heard that from legarde. Thats what she said more adults were needed in the room. It seems they need more adults lacking in the meetings. There is a lack of clarity and what is happening not just for european leaders, but the greek people too. They are just not sure exactly what they will be voting for come sunday. The proposals have been put on the table. A lack of clarity of what is in the proposals. They will be asked over the last proposals. When i asked people late last night after the pressor, some told me they were confused. They dont see the point of the question. When i asked how do we interpret it do we want to be in the euro or in the drachma. The latest polls conducted after banks opened the question is how would you vote this sunday. 47 said yes, they will accept the measures. 43 said no. When they were asked the second question should greece remain in the eurozone at any cost 74 said yes. 25 said no. So very clear. Greeks want to stay in the euro and be part of the eurozone but no more austerity measures. What they want doesnt seem to be one of the choices being put before them. That is the problem. Isa soares thank you for that. John, the economy has shrunk 25 in the past few years. Taxes will have to go up. It has hurt a lot. More hurt to come. The back and forth is fascinating. What the greek leaders want and doesnt want. Very hard to pin down. We have just stunning new details in the new york prison break. What the survivor is telling investigators right now. Spilling new information about Joyce Mitchell right there. The seamstress who may have helped them escape and what she had planned for her husband. Thats next. Big changes coming for a new york prison where two killers broke free. That as the now captured killer shares new details on the role that a prison seamstress had in the escape. New fallout for trump. Overnight, trump firing back on cnn. Are you have to hear what he said. And countrys concerns over terror. Welcome back to early start. Im john berman. Im christine romans. It is 31 minutes pafst the hour. We have breaking news. A ferry capsized off the coast of the philippines. Coast guard said the boat carrying 173 people off the coast of ormoc city. At least 36 people are dead. Dozens more people rescued. Again, this rescue operation underway. Lets bring in cnns kathy novak. Kathy. Reporter this is still happening, john. Our Sister Network cnn philippines says the coast guard says 118 people survived. 36 people confirmed dead as you mentioned. 19 remain missing. This vessel was 200 meters from the shore when it went down. The people on the port could see it from where they were standing. The red cross told us there were stormy conditions and big waves and heavy winds. This is a busy port city in the philippines. Maritime disasters are common. The red cross folks and Richard Gordon said most of the vessels have seen better days. Most of the worlds qualified people go to work and they may not have been very well prepared. That is what the red cross is telling cnn. We are waiting more word. John. Kathy novak covering this for us. Dozens dead. Dozens more rescued. The rescue operation still underway. We will keep you posted. This morning, self proclaimed escape mastermind david sweat revealing details about his time on the lam with the other escapee richard matt. A Law Enforcement official saying sweats partnership with matt went bad quickly. The older inmate was out of shape and slowed him down and matt started to get drunk after they broke into a cabin. Sweat said they split up. Officers shot matt five days later and noting they could smell alcohol on him from feet away. And we have kyung lah in albany with the latest. Reporter investigators completed the interview of david sweat for now. He has been talking to them from his hospital bed. He has been saying a lot. First and foremost leading investigators to understand it was a lot easier to break out of the correctional facility than anyone could have imagined. Sweat detailing to investigators that he and his accomplice used hacksaws, manual hacksaws to get out of the jail cells and cut into the piping. They were able to slip in and out of their cells on a whim. They made it to an Underground Passage way and they found a sledgehammer left behind by a construction worker apparently. They used that sledgehammer to get out. They were able to do a dry run. First getting into one manhole. Rejecting that manhole thinking it was too close to houses. The next day, making their real run into a manhole popping out of a manhole that was less populated. Also sweat detailed he was the mastermind it was Joyce Mitchell of having the idea of killing her husband. Mitchells attorney saying that is not true. Mitchell did not pick up the two men. They tried to flee on foot to canada. Sweat telling authorities while he was on the run, he had a number of close calls. One where he was hiding in a tree as an officer walked right by him. He remains in the hospital this morning. He is under heavy guard from what the hospital tells us. He remains in fair condition. John christine. Kyung lah, thanks for that. More big changes at the prison. Clinton correctional has a new superintendent today. Michael kirkpatrick. The two deputies in charge of the escape and warden were put on leave. Other changes in