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NEW DAY

Where is Snowden Now?; Immigration Bill A Step Closer to Passage; Dow Plunges 140 Points, Loses Nearly 1 Percent; First Heatwave of Summer; Afghan Forces Repel Attackers; "Progressives" Targeted Too; Lightning Hits Boy Scout Camp; Chicago Wins Stanley Cup; Zimmerman Trial Begins

Aired June 25, 2013 - 06:00   ET

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


(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: People may die as a consequence of what this man did.

CHRIS CUOMO, CNN ANCHOR: Where is Edward Snowden? The NSA leaker on the run and out of sight. And America seems unable to get him. Have we lost our mojo?

KATE BOLDUAN, CNN ANCHOR: Making the case. The murder trial of George Zimmerman off to a fiery start, profanity, a key witness, and a knock-knock joke. All on day one and more on the way today.

MICHAELA PEREIRA, CNN ANCHOR: And brace yourself. It's going to be a scorcher on the east coast. The hottest day of the year so far for much of the region, and today is just the beginning.

CUOMO: Your NEW DAY starts right now.

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

(END VIDE CLIP)

CUOMO: Good morning, everybody, and welcome to NEW DAY. I'm Chris Cuomo.

BOLDUAN: And I'm Kate Bolduan. We're with our news anchor, Michaela Pereira. It is Tuesday, June 25th, 6:00 in the East. And we have a lot going on this morning.

The U.S. still reeling from possibly losing Edward Snowden and the immigration bill clears a key hurdle. So, we're going to talk to two major players in all of this -- Senator John McCain, and later, House minority leader Nancy Pelosi.

And, a NEW DAY exclusive. Coming up, Paula Deen's sons are going to speak out for the first time live since the controversy involving their mother and her use of racial slurs blew off.

PEREIRA: Quite a bizarre story coming out of China. We're going to introduce you to an American businessman who's been held hostage by his own factory workers. He's on day five, I believe. No end in sight. We hear from him inside. Our David McKenzie sits down and talks to him from inside captivity.

CUOMO: Interesting story. But first, the big question this morning, where is NSA leaker Edward Snowden and why is America unable to stop him? He was last thought to be in Moscow, but right now Snowden's whereabouts, frankly, a mystery. Russia's foreign minister claiming Snowden did not cross into Russia.

So, the United States demands for extradition are baseless. WikiLeaks founder Julian Assange, who's sheltering Snowden, claims he's in a safe location and his spirits are high. Atika Shubert is live in our London bureau. Atika, what's the latest?

ATIKA SHUBERT, CNN CORRESPONDENT: Well, we have dozens of reporters in Moscow airport right now basically looking for Snowden everywhere, but it seems that nobody has seen him. So the big question is where could he be?

(BEGIN VIDEOTAPE)

SHUBERT (voice-over): Where in the world is Edward Snowden? This morning, no one seems to know. He's likely somewhere in the Moscow airport's transit terminal caught in legal limbo not technically in Russia, so not technically Russia's problem, but Snowden is turning into a very big problem indeed.

He was expected on an air flight to Havana, Cuba, but as a planeload on the 13-hour flight found out too late his seat went empty. Ecuador may take him in, but at this hour, Ecuador diplomats haven't said whether they will grant him entry. This as U.S. applies maximum pressure behind the scenes and in blistering statements on Russia, Ecuador and anyone else thinking of taking him in.

So for now we believe he waits. His global journey aided by this man, Julian Assange, founder of the anti-secrecy web site, Wikileaks, a man whose own legal troubles have led him to seek refuge in the Ecuador embassy in London for more than a year. In a telephone presser, Assange said, a Wikileaks staffer was traveling with Snowden.

JULIAN ASSANGE, WIKILEAKS FOUNDER (via telephone): U.S. secretary of state called Edward Snowden a traitor. Edward Snowden is not a traitor. He is not a spy. He is a whistleblower. He told the public an important truth.

SHUBERT: Assange said Wikileaks paid for Snowden's flights and legal counsel, but would not say where is he, only that he is, quote, "healthy, safe and in high spirits."

(END VIDEOTAPE)

SHUBERT: Now the latest we have is from Russian Foreign Minister Sergey Lavrov. He says that Russia was not informed of Snowden's plans. He made those travel plans by himself and we understand from airport officials that Snowden can stay in that terminal indefinitely so it could go on for a while yet.

CUOMO: All right, Atika, thank you very much. Boy, what we do not know about this story far outweighs what we do.

BOLDUAN: You're absolutely right. As the U.S. struggles to find Edward Snowden, the White House is finding himself and clearly a pretty spot. Frustrated officials warned Russia to turn Snowden over Monday and called his escape from Hong Kong a serious setback for U.S./China relations.

CNN's Dan Lothian is at the White House with the latest. The question on everyone's mind, Dan, what more can and should the White House do?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, White House applying all kinds of pleasure, both legal and political pressure, but there's a lot of frustration here at the White House and even as Snowden remains on the run, there are new revelations this morning the "South China Morning Post" reporting that Snowden took the contractor job. So he could collect proof on U.S. surveillance programs and that he plans to release additional information. I think it's an understatement to say that there's a sense of urgency here to get Snowden back on American soil.

(BEGIN VIDEOTAPE)

LOTHIAN (voice-over): The Edward Snowden cat and mouse game has become a diplomatic headache for the White House and President Obama for the first time in public is putting pressure on any country trying to assist the NSA leaker.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: What we know is that we're following all the appropriate legal channels and working with various other countries to make sure that the rule of law is observed.

LOTHIAN: The Obama administration is frustrated with Hong Kong and China for allowing Snowden to slip away and in a rare move is talking about the fallout in blunt terms.

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: Comes to our relations with Hong Kong and China that we see this as a setback in terms of their efforts to build, the Chinese, their efforts to build mutual trust.

LOTHIAN: Relations with Russia now being tested as well.

JOHN KERRY, SECRETARY OF STATE: We hope that the Russians will recognize the request of the United States particularly given that over the last two years we have sent seven prisoners back that they requested.

LOTHIAN: But the legal issues are being overshadowed by politics. Some say this has become an international embarrassment for the U.S. as Snowden continues to hide out the White House believes in Russia.

MATTHEW ROJANSKY, CARNEGIE ENDOWNMENT FOR INTERNATIONAL PEACE: If they've treated Snowden kind of almost as a friendly ambassador or special guest or something like that it's a way of saying look we're an independent actor in global affairs. We stand up to big, bad America.

(END VIDEOTAPE)

LOTHIAN: Now U.S. officials say that they expect the Russians to look at all their options and expel Snowden so that he can be brought back here to the United States. Meanwhile officials remain deeply concerned about the leaks of classified information and about the potential for additional leaks -- Kate.

BOLDUAN: All right, Dan, thanks so much. It's still amazing that we don't know at this moment where Edward Snowden is.

CUOMO: We'll just keep asking the question until we get an answer.

Moving on now, a sweeping immigration reform bill is one step closer to passage. Beefed up border security helped the bill to pass in the Senate, but will the House agree to legalizing millions of undocumented immigrants?

CNN's chief congressional correspondent Dana Bash is live from Washington. The tug-of-war between keep them out and keep them in. Can there be compromise, Dana?

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Well, if you look at what happened in the Senate, the answer would be yes. It was probably the most consequential vote in years, Chris, on the issue of immigration reforms. Sixty seven senators, two-thirds of the Senate voted yes signalling support for an immigration bill with beefed up border security.

This is really a classic case of sweetening the pot to lure supporters. The bill sponsors got 15 GOP senators to vote with all Democrats by saying they were doubling the number of border agents and much more. They were underscoring the fact that illegal immigrants will not get on a path to citizenship until the border is deemed secure.

But many Republicans say they just don't buy it, they called a smoke screen and that goes especially for Republicans in the House. Listen to what freshman Florida Republican Trey Radel told us.

(BEGIN VIDEO CLIP)

REP. TREY RADEL (R), FLORIDA: What hind vision the Senate, I think of a bunch of old guys with pipes in smoking jackets and deliberating on all these great ideas. But in the House, we need to put some teeth into this and we need to show the American people here's what we're going to do and why it's great for this country.

(END VIDEO CLIP)

BASH: The reason that we wanted to talk to him is because he's actually a rare Republican in the House. He's got a relatively high percentage of Latino voters in his district, but as you heard, even he told us the senate immigration bill is simply dead on arrival. That really says it all when it comes to the fate of the comprehensive reform in the House, which is going to be the next step after the Senate fully passes it. It's expected at the end of the week.

CUOMO: Dana, that's what I meant by compromise and it's not looking so good. So hopefully there's more leadership back there. Appreciate the reporting. Thanks, Dana -- Kate.

BOLDUAN: Big businesses this morning, investors are hoping for a better day on Wall Street, after stocks suffered a heavy loss. The Dow is coming off 140-point drop and the S&P 500 and Nasdaq were both down more than 1 percent. Christine Romans, of course, is here with what more question expect and can you make sense of this?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I can make sense of it. Look, it was another really rotten day. It's been a rotten several days. I mean, quite frankly you've got stocks in turmoil and major stock averages down 3 percent, 4 percent, 5 percent, over the past five days and that's going to translate into your 401(k), no question if you have stocks in your 401(k) like you should your 401(k) has lost some value.

I want to be clear and give some perspectives. Stocks, the S&P 500 still up about 10 percent this year so you should be positive in your retirement accounts. You've only taken a big hit here. The past four days you've taken a huge hit. Here's what the problem is. You have the fed that signaled it's going to stop injecting so much money into the economy.

And that really, really scared big, big investors, but there's one big fed official yesterday who said they're acting like hogs, the Wall Street pros, they smell any sense of change and they go after it maybe too aggressively. So this morning futures look like they're up 60 points.

BOLDUAN: We've got two things on its face seem a little confusing. The economy is still improving. You have this problem, this issue in the stock market. So how concerned should people be in the stock sell-off?

ROMANS: The economy is improving, but that's why the fed is going to have the room to stop injecting so much money into the -- so it's this funny, strange situation where good --

BOLDUAN: Transition period.

ROMANS: Right. Exactly, Kate. So you could see, they have signs of economic strength, that's going to be bad for the stock market. We're going to get housing data today. I expect this housing data is going to be strong. It will show we'll see home sales improve, home prices improve. That should be great. I'm not sure how the stock market is going to react though.

BOLDUAN: It's a funny place we're in actually right now.

ROMANS: Dow futures up 60 points right now.

BOLDUAN: All right, we'll keep watching it. You're welcome, Christine. Thanks. CUOMO: So the markets not so hot, but the rest of the country incredibly hot, coast to coast, hot, sticky weather because we have the first heat wave of the summer. It's not just uncomfortable for some part of the country it might be downright dangerous.

Let's bring in Indra Petersons with more on the sweltering temperatures. What is this and what does it going to mean?

INDRA PETERSONS, AMS METEOROLOGIST: That's exactly that I was going to say. What's the deal? We just say summer and suddenly it's over the top. We don't get any between period here. In New York, we have heat advisories out there, temperatures only in the mid-90s. We're talking about that humidity. It's so hot out there. It's really uncomfortable. So of course, we have the typical rules, obviously, you want to stay indoors if you can where there's air conditioning, not go out in the peak sun hours and drink plenty of water.

Otherwise, look at these temperatures. The average is 82, we're already 10 degrees above normal, but of course, when you add that humidity on top of it. You talk about these very warm conditions out there. The reason is a Bermuda high, why, because it's over Bermuda. The dome of high pressure brings all these warm temperature and filters it all the way up to the northeast.

But it's not the only thing that brings the warm temperature, but brings moisture up the seaboard as well. That's the reason the afternoons we get those thunderstorms popping. So that's going to be the weather pattern here for the next couple of days. Hint of relief toward the second half of the week. Otherwise look at the temperatures, it's not just the northeast or even the southeast. We're talking about the dry heat on the west coast, 125 in Death Valley by the end of the weekend so tough pretty much all around summer.

BOLDUAN: I don't have plans to go to Death Valley.

PEREIRA: Not a good time of year to travel there generally.

BOLDUAN: Indra, thanks so much. There's obviously a lot of news developing at this hour, let's get straight to Michaela.

PEREIRA: All right, thank you so much. Good morning to the two of you and good morning to all of you at home. Making news this morning, Afghan forces already put to the test, a group of attackers storming an entry point to the presidential palace in Kabul. Afghan police say, however, the group was quickly subdued and that only the attackers were wounded in that confrontation. International forces handed over security operations to Afghans just a week ago.

It turns out the IRS was targeting both ends of the political spectrum. Michigan Congressman Sander Levin says the term "progressives" was on the agency's tax exempt status screening list. He says the inappropriate practice continued until last month. The treasury inspector general previously disclosed the IRS targeted just conservative group. Twenty three boy scouts sent to five different New Hampshire hospitals after lightning struck their camp. Emergency officials told our affiliate WMUR, that during a storm, the boys took shelter under a tent with metal poles. Lightning hit either those poles or the ground nearby the boys. Six of them suffered burns to their chest, but all 23 of them will be OK.

The Chicago Blackhawks are the new Stanley Cup Champions. Chicago rallied in the final minutes of play to beat the Boston Bruins by a 3- 2 score last night in game six of the finals. Two goals within 17 seconds were enough to put the Blackhawks over the top. Chicago's Patrick Kane was awarded the Conn Smythe trophy as MVP of the playoff games. He's just the fourth U.S.-born player to win this honor.

And finally, talk about capturing something on tape, four different alleged shoplifters were caught on camera stealing from an Orlando supermarket including this man who stuffed a whole carton of eggs in his pants. But while being interviewed about the robberies by local station WFTV, the shop manager suddenly recognizes one of the suspects. Look at what happens next in this dramatic video.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Just, just give me one second, this is a guy that stole the other day. This is the guy that stole the other day. No, no, no. You're going on the floor. Tell my brother to call the police. I don't care. I don't care. I got your face when you take the meat, when you take the eggs.

(END VIDEO CLIP)

PEREIRA: He was arrested and charged with petty theft. He pleaded no contest and served five days in jail and was given a $273 fine and warning not to go near that store, which I don't think he will because that guy --

CUOMO: He is no joke.

PEREIRA: He had done it a couple of days before and put another respected robber in a full nelson. I had Chris explain what a full Nelson was.

CUOMO: Now that I've actually seen the videotape, Michaela -- I think these are jujitsu moves. You see how he puts his legs around him.

BOLDUAN: Very strange way. You got to put them somewhere I guess.

PEREIRA: I'm impressed.

CUOMO: The guy was charged and arrested so it was the right guy, very good.

All right, another interesting thing after we come back after the break, a tale of two lawyers in the Trayvon Martin murder trial. Take a listen.

(BEGIN VIDEO CLIP)

JOHN GUY, PROSECUTOR: (Inaudible) punks, these (inaudible), they always get away. Those were the words in that man's chest.

(END VIDEO CLIP)

CUOMO: Why is he cursing? He's describing George Zimmerman, that's the prosecution. We're going to tell you about these unusual opening statements had everything from what you heard to a bizarre knock, knock joke.

BOLDUAN: Also coming up the very latest on the murder case that's involved Patriot's player Aaron Hernandez and find out where police are looking now.

(COMMERCIAL BREAK)

CUOMO: Welcome back to NEW DAY, everybody. It is money time.

Christine Romans here with all the business news that we need to know. Good morning, Christine.

ROMANS: Do we still have any more money left time? Yes, it is money time.

PEREIRA: That's what I wanted to know.

ROMANS: No, no, we do. Futures are up this morning, guys. And also, federal regulators set to sue former New Jersey Governor Jon Corzine over the collapse of MF Global. "The New York Times" says this involves suit revolves around the brokerage firms misuse of customer money during its final days. Corzine ran that firm until its bankruptcy in 2011. Regulators planned to approve the lawsuit as soon as this week.

All right. Went to college but you're now bar tending? You're not alone.

A new study from Northwestern University says 36 percent of new college grads are doing jobs that don't require a degree. In 2000, it was 28 percent. Economists call this phenomenon the mal-employment, the mal-employment rate. A third of college grads working way below their potential.

BOLDUAN: It says more and more people -- kids are going to college?

ROMANS: It's true but some of the degree categories. Some of the degree categories, half -- half of the kids are working as a barista. Interesting. Choose wisely, parents.

BOLDUAN: Anyone in college just starting their summer vacation they're like thanks.

ROMANS: They're not up right now. It's their parents who are watching.

CUOMO: Instruction about employment specific training is a real one.

ROMANS: Absolutely, picking the right major. You have to pick the right major especially with the student loan debt.

(CROSSTALK)

CUOMO: Malemployment, what is that?

ROMANS: Hell hath no fury like a chairman scorned. Men's Warehouse founder George Zimmer resigned now from the company's board of directors after he was fired as executive chairman. He may be plotting a comeback and pondering his options according to a "Reuters" report, include maybe teaming up with a private equity firm to launch a buyout bid for the company that he founded and then he was booted from.

PEREIRA: You're going to like this, I guarantee it.

(CROSSTALK)

CUOMO: He still has his other job as the most interesting man in the world. Look at that picture of him.

BOLDUAN: That's a different guy.

ROMANS: He has an awesome beard.

BOLDUAN: The most intriguing man in the world, and then Wolf Blitzer, you couldn't tell them apart.

CUOMO: Stay thirstier in a suit, my friends. I've heard him say it.

All right. Now, day two of the George Zimmerman second-degree murder trial. This morning, a judge will decide if 911 calls Zimmerman made before Martin was killed can be admitted into evidence after an explosive start Monday of opening. They brought profanity from the prosecution and a bizarre knock-knock joke from the defense.

Let's go to CNN's George Howell. He's covering it all from Sanford, Florida, this morning. Already some surprises here, George, huh?

GEORGE HOWELL, CNN CORRESPONDENT: Chris, good morning. Absolutely. Good morning to you at home.

We want to warn you that you're about to hear some strong language from one of the prosecutors in this case and then there's the matter of the knock-knock joke that left the defense attorney to later apologize.

(BEGIN VIDEOTAPE)

HOWELL (voice-over): Opening statements in the case against George Zimmerman began with words we wouldn't air on TV.

JOHN GUY, ASSISTANT STATE ATTORNEY: (EXPLETIVE DELETED) punks. These (EXPLETIVE DELETED), they always get away. Those were the words in that grown man's mouth as he followed in the dark, a 17-year-old boy.

HOWELL: With Martin's family visibly shaken by what they heard, prosecutor John Guy spoke directly to jurors using the very words Zimmerman used when he called a non-emergency line before shooting and killing Trayvon Martin. For 30 minutes, the attorney challenged Zimmerman's account of what happened.

GUY: That defendant, at the same time was upright, walking around, preparing. Preparing to tell law enforcement why it was he had just profiled, followed and murdered an unarmed teenager.

HOWELL: In still another unusual move, attorney Don West opened for the defense with a knock-knock joke.

DON WEST, GEORGE ZIMMERMAN'S ATTORNEY: Knock, knock? Who's there? George Zimmerman. George Zimmerman who? All right, good, you are on the jury.

Nothing? That's funny.

HOWELL: How that played out with the jury is anybody's guess. The one thing that became very clear, though, West wanted to cover a lot of ground. For more than two hours he laid out Zimmerman's case with pictures in great detail, overkill in the view of CNN legal analyst Sunny Hostin.

SUNNY HOSTIN, CNN LEGAL ANALYST: You're supposed to give a road map but they gave so much more than that and I think it was too much.

HOWELL: The state called the first of its witnesses in the trial, among them, the non-emergency dispatcher, George Zimmerman called for help.

UNIDENTIFIED MALE: How come you don't or didn't say, you know, order the person to stop and don't follow and anything like that? Why did you phrase it like you phrased it?

SEAN NOFFKE, 911 DISPATCHER: The reason we do that is because we're directly liable if we give a direct order, so we always try to give general basic not commands but just suggestions.

(END VIDEOTAPE)

HOWELL: So court gets under way a little earlier today, 8:30 a.m. Eastern Time, as judge Deborah Nelson decides whether to allow previous 911 calls that George Zimmerman placed, whether to allow those into this trial. The prosecution wants them. The defense wants to ban them.

So we'll have to see how all that plays out.

CUOMO: All right, George, thank you very much for reporting. We'll be back to you.

Kate, this story is just going to get more and more as this case goes on, very different stories in the case.

BOLDUAN: And one of them the more interesting kind of first days of opening arguments that I've really heard in a very long time.

So, let's talk much more about this with our CNN legal analyst Sunny Hostin who has followed this case very closely and was also in the courtroom and she, of course, is joining me now from Sanford, Florida.

Good morning, Sunny.

HOSTIN: Good morning. Good morning, Kate.

BOLDUAN: I mean, it's like a tale of two opening statements. I mean, it was really amazing the different approaches that the prosecution and the defense took.

Let's talk about both, but let's start with the prosecution, very passionate, very emotional. What was -- what was the strategy there? And how was it received by the jury, do you think?

HOSTIN: You know, I think it was extremely well, Kate.

It was a textbook flawless opening statement in my view. I think law school professors will be using it in their law school classes as an example of how this is supposed to be done.

There was a road map. He was succinct, he was powerful.

And I was looking at the jury. I've got to tell you, they were riveted, all of them. They did not move from their seats. They were staring at John Guy.

And he was sort of this new secret weapon because he'd been in the courtroom, I've been here since jury selection. I had never really heard much from him. So we were surprised when we heard he would be given the opening and he was just flawless.

BOLDUAN: And then, of course, the question is the defense. We heard that knock-knock joke in George's piece and more of a dry kind of clinical delivery getting through a lot of evidence. How did the jury take that?

HOSTIN: You know, I think that they were bored. I think the knock- knock joke offended some of them. I could see their faces. And it wasn't textbook. It was sort of rambling.

While you're supposed to give some sort of road map, you don't throw everything and the kitchen sink in your opening statement. That perhaps is something for closing argument. I couldn't follow it and I've tried a lot of cases and I've covered a lot of cases. I can only imagine how this jury felt.

I mean, from looking at them, Kate, I could even see some of them nodding off. We're talking about almost three hours of an opening. While this is a second-degree murder case, remember the prosecution spoke in about 32 minutes so it was really in stark contrast, and I would say that the state won the opening battle in this case.

BOLDUAN: From the defense's perspective, especially the length of time the defense went on in the opening markets is there a strategy there or do you think it was a misstep? I mean, they prepare so much for these opening arguments.

HOSTIN: Well, it was certainly chock-full of their theory. They gave a lot of information to this jury. I don't think the presentation was good, that was the problem. Perhaps their theory was let me lay out our entire, entire case but again it just didn't work. It just it didn't work.

I mean, I was there in the courtroom watching and when that knock- knock joke, it's like the knock-knock joke heard round the world came out and fell flat. You couldn't hear the groan in the courtroom but could you feel it.

BOLDUAN: All right. We'll see if day two goes any better for the defense and also really what happens in Sanford, Florida, this morning.

Sunny, great to see you. Thank you so much.

CUOMO: A little bit of style versus substance. The defense believes on the facts, they have a strong case, tough for the prosecution. So you lay it out in great detail. The question is, did they do it effectively?

BOLDUAN: So, it's different to play to emotion on the defense side, right?

CUOMO: Absolutely, absolutely. It's a right point. Now, in a different investigation, Aaron Hernandez, the Patriots player, we keep hearing his name connected intensely with this murder prosecution, this investigation of this case.

So, how come police haven't arrested Aaron Hernandez? His lawyer sounds off on that for the first time.

BOLDUAN: Plus, a new day explosive. Paula Deen's sons joining us live, ready to take on any and all questions about the controversy surrounding their mother.

(COMMERCIAL BREAK)