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Christie, Paul Ready to "Kiss and Make Up"; House Passes Student Loan Bill; Gay Athletes Prosecuted at 2014 Olympics?; Student Debt Impacts Wealth

Aired August 1, 2013 - 06:30   ET

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


KATE BOLDUAN, CNN ANCHOR: I guess they were attempting a ceasefire, if you will, yesterday. Rand Paul saying, eh, we should get a beer together. Chris Christie saying, I'm too busy campaigning for reelection. And then Rand Paul is trying to make the point that this party is big enough for the two of us.

But I'm kind of starting to wonder if it is?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Yes, memo to Chris Christie. Guy offers to buy you a beer, say yes.

Look, this is personal. We talked a bit about this yesterday. You've got these two very outward personalities, very sometimes combustible, always confident guys, very different philosophically.

Rand Paul trying to dial it back. Chris Christie says, oh, he's trying to get more attention. I'm so busy.

I propose Chris Cuomo put them in the '93 Bronco. We do a cross country drive and see if maybe these guys can get together a little bit.

You know, this is funny and it's theater but it is about something bigger, the division, the debate in the Republican Party about who should lead them, but what kind of party do they want to be?

And a lot of Democrats are laughing about this. I would just remind them. Five years ago, we had this guy Joe Biden, this guy Barack Obama, this woman Hillary Clinton, this guy John Edwards, they went at it pretty tough, they got personal sometimes, and they won the White House.

If you handle this right, a good feisty debate is actually good for the party out of power.

CHRIS CUOMO, CNN ANCHOR: I would love to put the politician in the Bronco and drive them cross-country so they can hear what people think about what they're doing. They need more than beer.

KING: They can pay for the gas.

CUOMO: They need more than beer to deal what they were hearing.

Let me ask you, one of the things that the Democrats are celebrating is the student loan bill got done. Why do they think this is so good for families?

KING: Well, in part because Washington did something that matters to middle class families. Because most days, we are talking about Washington being incapable of tying shoes or turning the lights up when they leave the room.

So, they got this compromise. Is it perfect? No. The Republicans say they won with their approach to make it market based. We've talked to you before.

There are some concerns, if the rates are tied to the 10-year treasury bill. So, if the 10-year Treasury bill goes up, will the rates go up years down the future and make it harder for people to borrow money? It's a legitimate question.

But they actually got something done. People went in the room and they kept trying until they figured out a reasonable compromise. Now, we're going to see it go into effect. We'll watch those town halls. When people go home in August, we're looking for immigration, we're looking for the health care debate.

But this is another thing. Do people come in and say, I like this deal, or do people come in and say, as they're starting to fill up the papers, they have problems with the deal. It's one of the things we need to watch over the summer.

BOLDUAN: Because this is one of the areas where you saw the division not within the Republican Party, but you saw division within the Democratic Party on this one.

CUOMO: What's the chance? A family is going to say they like the bill when it's going to make rates higher over time?

KING: Well, at least they have a resolution. Sometimes, we need to say, let's not make the perfect the enemy of the good and see how it plays out. But you make a key point. As they actually do it, we have seen in the past, they can go back to the Danny Rostenkowski days where they passed the new health care plan they thought was great. Seniors revolted against it.

So, they think they have a deal that works. Most people in both parties are satisfied with the deal. There are some outliers on both ends. Now, we are going to see. The American people will go through this process. Parents will start getting the loans. If they don't like it, trust me, we will hear about it.

BOLDUAN: We will hear about it. All right. John, thanks so much. Great to see you.

KING: Take care, guys.

CUOMO: College is a priority, that's why we make their loans more expensive. I'm sure that will go over very well. What do you think? Discuss amongst yourself.

We're going to take a break here. When we come back on NEW DAY, the Olympics are supposed to be about bringing the world together, right? But Russia's strict new anti-gay laws could put athletes and fans at risk of arrest at the 2014 Winter Olympics. So, what is the U.S. going to do about it? We'll ask.

BOLDUAN: And Justin Bieber update. He will have to pay the price for leaving his pet monkey behind during a visit to Germany. How high is that price?

(COMMERCIAL BREAK)

CUOMO: Welcome back to NEW DAY, everybody.

Russia, the host of the 2014 Olympics, just announced that not all may be welcomed at the games. Gay athletes and fans could be prosecuted. Why? The country has strict laws on the books banning public displays of affection by same sex couples and against symbols like the rainbow flag.

Phil Black is live in Moscow with details.

Good morning, Phil.

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Good morning, Chris.

At a time when a growing number of developed countries are accepting gay marriage, Russia has made it illegal to publicly suggest that gay relationships are equal to straight. The language of the law is pretty vague that is why there is great concern it could apply to people who visit here during the Olympics.

(BEGIN VIDEOTAPE)

BLACK (voice-over): This is what happens when gay rights supporters protest in Russia.

Lately, they have had a lot to protest about. In July, Russia implemented what has become know as the antigay propaganda law. It bans the public discussion of gay rights and relationships, anywhere children might hear it.

Russia is prepared for the 2014 Winter Games in Sochi, and there is great concern about what the law will mean for gay athletes and visitors.

Yalina Mosulina (ph), the politician who drove (ph) the law, told Russia's parliament it outlaws information that gives a distorted perception of social equality between traditional and nontraditional sexual relations.

The law passed with an overwhelming majority. It's been condemned by human rights groups around the world for promoting discrimination and for not meeting standards for an Olympic host country.

The International Olympic Committee says this law won't be applied during the games. But not every official supports that. Politician Vitali Milanov (ph) implemented a local earlier version to propaganda law in his city, St. Petersburg. He says all Russian laws should be enforced during the Olympics regardless of who is breaking them.

All of this has fueled growing international outrage, while some gay activists are suggesting a boycott of the Olympics. There is already great support for widespread campaigns saying nyet to Russian products like vodka.

(END VIDEOTAPE)

BLACK: Russian gay activists say they are very grateful for the support they are receiving from around the world. The goal is to kill off this law before the Olympics. If that doesn't work, they want to use the international focus on Russia during the games to apply maximum pressure on the Russian government.

Back to you, Kate.

BOLDUAN: All right. Let's go around the world right now -- beginning with what a human rights group calls a recipe for blood shed in Cairo. Egypt's military backed government ordering police to end sit-ins supporting deposed President Mohamed Morsy.

Arwa Damon has more.

(BEGIN VIDEO CLIP)

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Egypt's military- backed interim cabinet has authorized the ministry of the interior to use all force necessary to clear deposed President Mohamed Morsy's supporters from Cairo's two main sit-in sites.

The justification, the interim government says acts of terror around these locations, numerous complaints from terrified residents and the ongoing blockage of main roads, all of which they say constitutes a threat to national security. But with those pro-Morsy demonstrators determined to stand their ground, it's very difficult to see how a bloody confrontation can be avoided -- Kate.

(END VIDEO CLIP)

BOLDUAN: Arwa, thanks so much.

Now to Thailand where crews are desperately trying to clean up an oil spill that's washing up on the beach of a popular tourist destination.

Andrew Stevens has the details.

(BEGIN VIDEO CLIP)

ANDREW STEVENS, CNN CORRESPONDENT: It was the picture perfect beach, the ideal tourist getaway here in tropical Thailand. But today, it's the scene of frantic activity by hundreds of military personnel, workers and volunteers, trying to clean thousands of gallons of crude oil from the beach from a spill on Saturday. It is four days since the oil started washing ashore here and most of it has been cleared.

But it's going to take weeks if not months to get this beach back to its pristine condition. That is a big blow for tourism-hungry country like Thailand -- Kate.

(END VIDEO CLIP)

BOLDUAN: Look at that video.

Thanks, Andrew. Thanks very much.

And in Germany, singer Justin Bieber is paying the price it appears for leaving his monkey behind.

Erin McLaughlin has more.

(BEGIN VIDEO CLIP)

ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT: Kate, Justin Bieber's capuchin monkey Mally has racked up a hefty bill in Germany, close to $8,000 in vaccination, transportation and custom fees. Now, German officials say pay up or else. They say they tried to contact Bieber's people with the bill but got no response.

Now, the next time Justin tries to enter Germany, he will have to pay the bill on the spot or risk not being allowed in the country.

Back to you, Kate.

(END VIDEO CLIP)

BOLDUAN: That is the most talked about monkey I think in human history.

(LAUGHTER)

CUOMO: I have to read that law on the books. Failure to take monkey, banned from country.

PEREIRA: They that monkey very seriously.

BOLDUAN: It's the monkey non-loophole.

CUOMO: Germans don't mess around. Very strict as a culture.

BOLDUAN: I shouldn't have been giggled. I'm probably going to be fined.

CUOMO: That's (INAUDIBLE)

Coming on NEW DAY, police shoot an unarmed man in his own drive way and his own car. Big questions, and the sheriff is here to live answer them.

BOLDUAN: Tainted salad is believed to be behind that severe stomach illness. So, why won't they tell us the company? We'll talk to Dr. Sanjay Gupta about that.

PEREIRA: And a brand baby elephant making -- making quite a splash at a Texas zoo. We have more adorable video of baby Belle, a good name, from Texas. She is a blue belle. Look at her. This will put a smile in your face this morning --

(COMMERCIAL BREAK)

PEREIRA: Our must-see moment, we're getting our first look at the new star attraction at the (INAUDIBLE). We want to introduce you to Baby Bell. Her name is Bell. She was July 7th, weighing in a delicate 330 pounds. She's an Asian elephant calf. She went with the whole two weeks without a name. They decided to name her bell which is short for Blue Bell. It's a good Texas name, was the winning choice in a naming contest held by the zoo.

Bell's 40-year-old mom, Russia, was pregnant for 22 months with this bundle of joy. And few moms at home, the expectant moms feel like you're at 10th month, just remember, elephants are pregnant for 22 months.

(CROSSTALK)

BOLDUAN: Test the water slightly and then she dived right in.

PEREIRA: She just looks so blissful.

CUOMO: It's one of the reasons the baby elephants are so obedient is that the mother has that guilt over them. Twenty-two months --

(LAUGHTER)

(CROSSTALK)

(LAUGHTER)

CUOMO: That's what happens.

PEREIRA: Press it back and then bring it out. It's always worth --

CUOMO: Twenty-two months, that's a lot of guilt.

PEREIRA: A lot of guilt.

CUOMO: All right. Coming up on NEW DAY, the man who killed Trayvon Martin is apparently still packing heat. We've got what you're looking at, new video that shows what happened when George Zimmerman got pulled over for speeding in Texas with the gun in his trunk.

BOLDUAN: Plus, a showdown today in a Cleveland courtroom. One of the women held captive and tortured by Ariel Castro will face him down during his sentencing. We're going to have a preview coming up.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": San Diego mayor, Bob Filner, an eighth woman has now come forward and accused him of unwanted sexual advances. First of all, do they really have to specify unwanted? (LAUGHTER)

LENO: Look at this guy. Look at this guy's picture. All right?

(LAUGHTER)

LENO: Isn't every sexual advance unwanted from that guy?

CONAN O'BRIEN, HOST, "CONAN": The San Diego mayor who is accused of sexual harassment is now asking the city to cover his legal fees.

(LAUGHTER)

O'BRIEN: Yes. When they refused, he said, OK, fine, come get the money. It's right down here in my pants pocket.

(LAUGHTER)

(END VIDEOTAPE)

BOLDUAN: Awkward.

(LAUGHTER)

BOLDUAN: You know who's breathing a sigh of relief? Anthony Weiner?

CUOMO: That's exactly right.

(LAUGHTER)

PEREIRA: He thought (ph) him for a minute.

CUOMO: That's exactly right.

All right, everybody. A lot of news for you this morning. One of the stories we're looking at is the pending suspension of A-Rod, the big Yankee slugger. And of course, we're watching that. We're going to have more on that in just a moment, but there are other big stories in sports like the fire storm that erupted after this Philadelphia Eagles wide receiver, Riley Cooper was caught using a racial slur on tape.

I mean, just a bizarre story. Let's bring in Andy Scholes with the "Bleacher Report." Andy, tell me that I'm getting this wrong. I mean, what did Riley Cooper say?

ANDY SCHOLES, BLEACHER REPORT: Now, you're definitely right, Chris. You know, video surfaced earlier this week of Riley Cooper at a Kenny Chesney concert. And in the video, the Eagles' wide receiver uses a racial slur towards a security guard. Now, Cooper met with the media yesterday and he apologized over and over again for the incident. Cooper said he was drinking that night but that was no excuse.

(BEGIN VIDEO CLIP)

I'm disgusted and I'm sorry. That's not the type of person I am. And, I wasn't raised that way. I got a great mom and dad at home. And, they're extremely, extremely disappointed in me.

(END VIDEO CLIP)

SCHOLES: The Eagles fined cooper an undisclosed amount for his actions. And quarterback, Michael Vick, and most of his teammates has said today have forgiven Cooper for his poor choice of words.

The pro-bowl as we know it is no more. No longer will it be the best of the AFC versus the best of the NFC. Instead, they're going to have a draft to determine the two sides. Jerry Rice and Deion Sanders will help pick the two teams along with the two fantasy football champions from NFL.com. The game will also have plenty of rule changes such as no kickoffs and a possession is going to change after each quarter. Interesting.

BOLDUAN: What's the point?

SCHOLES: Yes. Trying to spice it up a little bit.

All right. Check this out. The Giants at Phillies last night. Pablo Sandoval ripped the foul ball down the line. Check it out. Fan with the hat makes the nice catch there. And luckily for the girl below, I mean --

(CROSSTALK)

SCHOLES: It could have been bad. Chris, what's your method of catching a foul ball, you go hat, glove, or the bare hand?

CUOMO: I'm a cradler. I'm a cradler.

SCHOLES: You're a cradler?

CUOMO: I'm a cradler. I've had some bad success without there among the bleacher creatures in Yankee Stadium. I've had a couple of balls my way. Missed them, and it is not a nice time to be up in that section of the stadium --

BOLDUAN: If you're catching it with your bare hand, is there not a high probability of broken or bruised?

CUOMO: You know what, you probably, you know, having a little liquid courage and the ball is coming and you think you're going to just kind of take the momentum off.

BOLDUAN: Right. It is nice and easy. Until the guy next to you.

CUOMO: But perhaps not easy, too, you know, because you still have to give with the hat a little bit with the ball --

(CROSSTALK)

SCHOLES: He kind of closed his eyes and did one of these.

CUOMO: That's not right.

(LAUGHTER)

(CROSSTALK)

CUOMO: Don't hate, appreciate.

PEREIRA: What I usually do is buy a beer for the people around me to say that they'll get the ball if it comes my way because I'm like --

BOLDUAN: You need to keep them sober if you want them to catch the ball.

PEREIRA: That's may be my mistake.

CUOMO: I'm thinking make this treat like incoming.

(CROSSTALK)

BOLDUAN: Thank you, Andy.

(CROSSTALK)

BOLDUAN: I can catch a ball, you cannot.

(LAUGHTER)

BOLDUAN: That music means it's time for the "Rock Block," everyone. A quick roundup of the stories you're going to be talking about today. First up, Michaela.

PEREIRA: Speaking of liquid courage. First up in the papers, from the "Star Ledge," a big bar tab. The owner of eight TGI Fridays in new jersey paying a half million dollars in fine. Why? The restaurants were serving customers cheap liquor when they asked for top shelf.

In the "L.A. Times," a pair of dinosaur skeletons discovered in Montana eight years ago. Expected to fetch quite big bucks on the auction block this fall. Auction (ph) house says they are valued at between $7 and $9 million.

In "USA Today," word actors, Rob Lowe and Rashida Jones leaving one of my favorite shows, "Parks and Recreation" on NBC. The series co- starts will depart midway through the upcoming sixth season. I wonder if the plot will be the runaway together.

Christine Romans with our business news.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I wonder. You could work in Hollywood. Investors are starting to like Facebook again a year after the botched initial public offering shares finally topped the $38 IPO price. Of course, slipping (ph) back a bit, we'll watch this today.

Student debt is dragging down wealth. A new study finds a household with $53,000 in student loans will eventually lose four times that from retirement savings and home equity. How much would you pay to eat sweets with Warren Buffett? The billionaire investor auctioning off a tour of a candy factory for charity. The current bid, $40,000. Future is higher this morning. Looks like a bullish start to the month of August. Let's get to Indra Petersons for the weather.

BOLDUAN: That's a lot of candy.

INDRA PETERSONS, AMS METEOROLOGIST: You know what I can buy with that? Yes. The story today is actually going to be rain. So, if you're in the mid-Atlantic, look for the heaviest rains, scattered thunderstorms really anywhere from Pennsylvania in through Jersey, even down through Virginia.

Behind that, surprise, surprise the southeast, more rain again for you today. Not as bad as yesterday, not as widespread, but we do have some hot spot. Atlanta and (INAUDIBLE) also looking for some of the heavy rain. As far as the severe weather threat today, we're going to be looking that stretching anywhere from Montana really all the way down through Nebraska. So, today is one of those days you need a cheesy weather line, right? (INAUDIBLE)

(LAUGHTER)

BOLDUAN: I love weather lines. Cliche because it is true. Exactly. Thanks, Indra. Thank you very much.

All right. We're now at the top of the hour, everyone, which means it's time for the top news.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Gina's mom has always said that somebody who knew her took her.

CUOMO: Breaking new details from the diaries of the three women kidnapped in Cleveland. What they endured and how they survived? Their captor will have to face one of the women today, the day Castro is expected to receive a life sentence.

BOLDUAN: Run in with the law. George Zimmerman stopped for speeding in Texas. It's all caught on tape and he was carrying a gun.

PEREIRA: Gunned down. Why did police fire 15 times at this man reaching for a cigarette? This morning, we get answers.

CUOMO: Your NEW DAY starts right now.

ANNOUNCER: What you need to know.

UNIDENTIFIED MALE: I haven't lied to Congress.

ANNOUNCER: What you just have to see.

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

(END VIDEOTAPE)

CUOMO: Good morning, everybody. Welcome to NEW DAY. It's Thursday, August 1st, seven o'clock in the east. I'm Chris Cuomo.

BOLDUAN: Good morning, everyone. I'm Kate Bolduan. We're here with our news anchor, Michaela Pereira.

Coming up this hour, new leaks saying the National Security Agency can track everything you do on the internet. "The Guardian" newspaper publishing the startling accusations exposing another NSA surveillance program. We're going to try to take a look at what's true and what's not.

CUOMO: Then, big, big story out of baseball. Is it over for A-Rod or can he pull off a last-minute deal to save his career? We have the new ESPN report about high level negotiations that could help the Yankees slugger avoid a lifetime ban from baseball.

PEREIRA: And don't you just get annoyed by almost high ticket prices for your airline plans. It's great when some of those super cheap deals pop up, right? It turns out some of those deals aren't real. Airlines are now paying the price for those misleading ads. But the question is, what does it mean for you? We'll look into that.

BOLDUAN: All right. Starting off this morning, though. It's sentencing day for Ariel Castro. He pleaded not guilty -- he pleaded guilty, rather, to kidnapping three women and holding them captive for nearly a decade in his Cleveland home. Today, he's expected to face one of his victims, you see right there, in the courtroom.

It comes as we learn horrifying new details about the women's lives while they were in captivity. Pamela Brown is live in Cleveland this morning. Good morning, Pamela.

PAMELA BROWN, CNN CORRESPONDENT: Good morning to you, Kate. That's right. According to sources, one of the three women will actually be making an impact statement today and she could be facing her captor in court. That's Michele Knight. She is the one who is likely to testify today. Also, prosecutors have released presentencing documents and it shows even more horrifying details of what these women endured.

How they were in a sustained state of fear and how they tried to keep a sense of normalcy through the use of their diaries?

(BEGIN VIDEOTAPE)

BROWN (voice-over): Prosecutors filed a sentencing memorandum Wednesday detailing how Ariel Castro kidnapped Amanda Berry, Gina De Jesus, and Michalle Knight, and the horrific physical, mental and sexual abuse they endured daily. According to court documents, he let the three women keep a diary during the captivity that described the abuse and dreams of someday escaping and being reunited with family.