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NEW DAY

Chaos in Egypt; Hostage Situation in Louisiana Ends in Tragedy; Anderson Shares Story on Social Media; UPS Plane Crash; Powerball Winners Announced; Teenage Now on Transplant List; DOJ Fights Airline Merger

Aired August 14, 2013 - 07:00   ET

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


(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We hear heavy weapons (ph) and then the helicopters were dropping tear gas from above.

CHRIS CUOMO, CNN ANCHOR: Breaking overnight. Violence in the streets of Egypt, reports of hundreds dead. The government cracking down on protesters. The fight raging at this hour, and we are there.

KATE BOLDUAN, CNN ANCHOR: Deadly standoff. Also breaking overnight, a gunman holds three people hostage for hours inside a bank. Police negotiating into the night, but there are casualties this morning.

MICHAELA PEREIRA, CNN ANCHOR: He would have killed me. Hannah Anderson telling her side of the story for the first time. Online posts reportedly from her giving chilling new details into her week in captivity.

CUOMO: Your NEW DAY starts right now.

ANNOUNCER: What you need to know.

UNIDENTIFIED FEMALE: They gave him a death sentence.

ANNOUNCER: What you just have to see.

UNIDENTIFIED MALE: I'm just going to continue watching NASCAR racing on Sunday.

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

(END VIDEOTAPE)

CUOMO: Good morning. Welcome back to NEW DAY. We're almost there. It's Wednesday. We're nearing the end of the week, August 14th, seven o'clock in the east. I'm Chris Cuomo.

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

PEREIRA: Good morning. BOLDUAN: Good morning. Coming up in this hour, we have an update for you on that shocking video showing three teenagers beating up another student on a school bus. The accused teenagers went before a judge and we're going to hear what one of their fathers had to say about the attack. Who's to blame? A lot of people are asking, the students, the school, or the parents?

CUOMO: And we have something this morning that literally is a matter of life and death for a 15-year-old boy. He needs a new heart. Staff at an Atlanta hospital had said they wouldn't put him on the transplant list because they thought he wouldn't follow medical advice. There's a story to that. But now, in a dramatic reversal, they've changed their minds. The question is why. Was it the response to the initial decision? We'll take you through it.

PEREIRA: And it's one of the most popular TV shows on TV right now, maybe a favorite of somebody at this desk, one of the stars of "Duck Dynasty," is he going to trade in his reality fame for Capitol Hill? Word this morning that Willie Robertson could run for Congress and that might be a tip as who is a fan of that show.

BOLDUAN: I'll be leaving my job and heading back to Congress.

(LAUGHTER)

CUOMO: His head band is a good tell.

(LAUGHTER)

CUOMO: He's got America on his mind, literally.

BOLDUAN: Yes.

CUOMO: But first for you this morning, breaking news, there is chaos in Egypt. Deadly clashes overnight between government security forces and supporters of ousted president, Mohamed Morsy. These clashes have left 15 dead, more than 200 injured, and those numbers are expected to rise.

CNN is covering this story like no other network can with live team coverage. First, let's go to Arwa Damon. She is live in the streets of Cairo, joining us by phone. Arwa, can you hear us? If so, what's the latest?

VOICE OF ARWA DAMON, CNN CORRESPONDENT: Well, these clashes are really spreading throughout the entire capital. We were outside of Rabaa al-Adawiya around an hour ago when we last talk (ph), that is the main sit-in site there. We were watching pro-Morsy demonstrators, crowds using a bus for cover, trying to move forward on an overpass to join those demonstrators that are at the main sit-in site.

Now, we're in another part of Cairo where we saw tear gassing, fires were heard what sounded like gunshots. This is another area where there is (INAUDIBLE) crowd of pro-Morsy demonstrators. There were (INAUDIBLE) -- one of their two main sites. There are ambulances that have just pulled up in the distance. It seems as if one person was put into them. We can't tell the extent of their injuries. We can still smell the tear gas and we're hearing what sounds like a few rounds of gunfire in the distance.

CUOMO: All right, now, we understand that there are more of these clashes. Are they also increasing in intensity? Are you starting to see more violence, bigger operations from the military? What are you seeing?

DAMON: It's difficult to tell whether or not the security forces operations are getting bigger. We do know that this started out as being the ministry of the interior, a police force operation that they were the ones that were tasked with degree with the various sit-ins and we saw the military also being called to action. State television says they are deploying their special forces unit to assist the police. We saw some army units, some soldiers also setting up road blocks and barricades as well. We've seen helicopters overhead. So most certainly this is possibly proving to be much more than just those police units literally sent out to deal with much more than they can actually handle.

CUOMO: All right, Arwa, thank you for the reporting. Stay safe. We'll be back to you.

BOLDUAN: Let's continue this conversation, get to Ian Lee, live in our Cairo bureau. Ian, as you're hearing from Arwa right there, who is down on the streets she says the clashes are spreading throughout the capital. The military and the police force, they clearly outmuscle many of the protesters who are sitting in, so any clue of how this could possibly end?

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: Well it's not going to end pretty, I can tell you that much. When we've seen in the past the military move-in against protesters they have not lost any of those skirmishes. They will go through until they achieve their objectives, and what we are seeing, what Arwa said, that this really is spreading throughout Cairo. It is also spreading throughout Egypt. We've seen police stations throughout the country, the ministry of interior saying three of them have been attacked by pro-Morsy supporters saying others could be attacked as well. We're also hearing of a church, it's being reported a church has been attacked by pro-Morsy supporters.

So this is really starting to spread throughout the country. What started as an early dawn raid against these two camps is really spreading throughout the country as we see supporters of the ousted president take to the streets. And it will not end pretty as the military has never really lost any of these skirmishes. They will see it to the end.

BOLDUAN: As we see this video coming in, the clashes and the violence absolutely continuing. We'll check back in with you throughout the morning. Thank you, Ian Lee.

CUOMO: We also have more breaking news for you. A tense hostage standoff at a bank in Louisiana ended in tragedy overnight. The suspect shot and killed by police, but not before he opened fire on two bank employees he was holding captive. Alina Machado is live from St. Joseph, Louisiana. Good morning, Alina.

ALINA MACHADO, CNN CORRESPONDENT: Good morning, Chris. Those two hostages are listed at last check in critical condition. They were taken to area hospitals after surviving a terrifying ordeal that took place at the bank behind me.

(BEGIN VIDEOTAPE)

MACHADO: An intense 12-hour hostage standoff finally comes to an end when the suspect is killed by police in a dramatic shooting.

UNIDENTIFIED MALE: The indication was that he was through and he was going to kill a hostage.

MACHADO: Louisiana state police say 20-year-old Fuaed Abdo Ahmed shot two hostages as police stormed the bank where he was keeping them. Both victims were taken to area hospitals. Police say Ahmed walked into the All State Bank in St. Joseph, Louisiana, around noon on Tuesday, armed with a handgun. He took three bank employees hostage.

UNIDENTIFIED MALE: This was not the intent of Mr. Ahmed to rob that bank. Information that was obtained from his apartment was that written notes, a plan. He actually had a book for negotiation.

MACHADO: Police negotiated with Ahmed well into the night, and before the confrontation with police, he let one of the hostages go.

UNIDENTIFIED MALE: We held out hope, hoping that we could further that and maybe get a release of the other two hostages.

MACHADO: But negotiations went south after police say Ahmed threatened to kill the remaining hostages. That's when the SWAT team moved in.

UNIDENTIFIED MALE: He had a small handgun that he was trained on the two individuals. He shot both of them as we were entering the building. We were able to shoot and kill him.

(END VIDEOTAPE)

MACHADO: Police say Ahmed was a paranoid schizophrenic and he told them he heard voices and that he wanted a device removed from his head. Kate?

BOLDUAN: All right, Alina Machado, thank you for the update.

We're told kidnapping victim Hannah Anderson is sharing her horrifying ordeal online this morning. According to the Associated Press the California teen is taking questions from really total strangers, insisting James DiMaggio, the man who kidnap her after murdering her mother and brother in her words "deserved what he got." Casey Wian has more on this development from Los Angeles. Good morning, Casey. CASEY WIAN, CNN CORRESPONDENT: Good morning, Kate. Hannah Anderson did what a lot of typical teenage girls might do after a life-changing ordeal. She went on social media and shared the story with her peers.

(BEGIN VIDEOTAPE)

WIAN: And 16-year-old Hannah Anderson is sharing details about her kidnapping on social media. That's according to the Associated Press. The AP reports Hannah fielded questions on the site Ask FM about her abduction by the man she knew as Uncle Jim, James DiMaggio. A user asked "Did you want to go to DiMaggio?" She replied. "No, not at all." "Why didn't you run?" "He would have killed me." "Why didn't you tell your parents he creeped you out?" "In part, he was my dad's best friend and I didn't want to ruin anything between them."

Hannah shed new light on the night she was kidnapped, the same night her mother and younger brother were murdered, their bodies burned in DiMaggio's house. "How did he separate you from your mom and brother?" "He tied them up in the garage." "How did he keep the fire a secret?" "He had it set where it would catch on fire at a certain time."

The AP says Hannah also wrote DiMaggio threatened to kill her if she fled and brought her at least in part to carry equipment in the wilderness. Some questions from subscribers were brutally blunt. "Did he rape you?" "I'm not allowed to talk about it so don't ask questions about it, thank you." "Are you glad he's dead?" "Absolutely." Some experts question the wisdom of Hannah's online chats.

UNIDENTIFIED FEMALE: This is a 16-year-old who is totally traumatized. She is in a state of trauma and so she's not thinking. Sometimes in a numb state you're doing things that you don't really consider the consequences.

WIAN: Hannah even posted a selfie and engaged in lighter conversation typical of a teenaged girl, but even some of that seemed painful. "What design did you get on your nails?" "Pink for my mom and blue for Ethan." Those who know her tell CNN Hannah spent some of Tuesday helping to plan their funerals.

(END VIDEOTAPE)

WIAN: Hannah also expressed regret that she couldn't have done more to help save her mother and her brother. Also, we want to point out that CNN has not been able to independently confirm that that social media interaction is from Hannah. The Associated Press, though, says it has. Kate?

BOLDUAN: Casey Wian thanks for the update, Casey.

If you want to help Hannah, and many people have reached out to say they do, there has been a fund set up for the teenager. For information go to our Web site CNN.com/Impact. We'll have it there.

CUOMO: A lot of other news developing at this hour so let's get to Michaela.

PEREIRA: We start with some breaking news. A UPS cargo plane has crashed in Birmingham, Alabama. An A-300 jet was en route from Louisville and crash landed attempting to land at Birmingham Shuttlesworth International airport. We are being told rescuers were scrambling to the crash site right now. Witnesses report hearing at least three loud explosions. No word of injuries or fatalities just yet, but count on us for updates as soon as more information is available.

An update on the massive blaze in Idaho. It has scorched more than 98,000 acres at five percent containment. Fire officials are already predicting it will not be fully contained until October 1st. At least 71 homes and other structures have been destroyed. In Utah just east of Salt Lake City a wildfire there burning across 4,000 acres is at five percent containment. At least a dozen homes have been destroyed.

Sentencing day for Jesse Jackson Jr., the former Illinois congressman and son of Jesse Jackson the reverend will learn his fate later this morning in federal court. He pleaded guilty to the misuse of $750,000 in campaign funds. Jackson's wife, Sandy, will also be sentenced today for failing to report as much as $600,000 in income to the IRS.

A setback for actor Jason Patrick in his bitter custody battle, the star pleading with the California legislative committee to pass a bill that would give sperm donors the ability to seek parental rights to the children they father. Patrick has not seen his three-year-old son Gus in six months, a child he conceived with his ex-girlfriend through in-vitro fertilization.

(BEGIN VIDEO CLIP)

JASON PATRICK, ACTOR: SB115 doesn't give me my son back. I don't know if it gives Mr. Correa has son back. But what it does do is give standing for known constitutionally get their rights and go into court and say I'm the dad.

(END VIDEO CLIP)

PEREIRA: The panel, however, was not convinced, voting 5-2 to hold the measure in committee for further discussion later this year.

Finally, what a scene in New Jersey. A group of 16 garage workers coming forward to claim their share of last week's massive $448 million Powerball jackpot. The nine women and seven men gathered for a raucous news conference Tuesday, and I got to say hearing their stories, you can't help but feel glad for them.

(BEGIN VIDEOTAPE)

PEREIRA: And 16 New Jersey Powerball millionaires now dubbed the "Ocean 16," so-called because a co-worker bought the winning ticket for their Powerball pool at the Ocean County vehicle maintenance garage, and no, she didn't have to dance through laser fields like in the movie "ocean's 12."

UNIDENTIFIED FEMALE: Honestly I went to acme to pick up group tickets because I needed to pick up my prescriptions from the pharmacy.

PEREIRA: She needed someone to double check.

UNIDENTIFIED FEMALE: I had to wake my poor husband up who was no longer poor.

(LAUGHTER)

PEREIRA: But being thankful was the overall theme as six were victims of super-storm Sandy last year. Darlene lost her home.

UNIDENTIFIED FEMALE: We lost our home, and everybody pulled together and helped me through.

PEREIRA: In a real life twist one new millionaire is the daughter of state Senator John Brown, who wrote the law creating the New Jersey lottery. He died two years ago.

UNIDENTIFIED FEMALE: The only thing I wanted to do the next morning was pick up the phone and call him and call my mom, and then I realized I couldn't do that. But this is a real special moment and I thank you all.

PEREIRA: After federal and state tax and splitting the sum 16 ways each Ocean's winner takes home close to $4 million. But loyal to the garage, most have decided to continue working, with few future plans on spending their stacks of cash.

UNIDENTIFIED MALE: I'm just going to continue watching NASCAR racing on Sunday, maybe I'll be at my log cabin on multiple acres of land.

(LAUGHTER)

(END VIDEOTAPE)

PEREIRA: Kind of love him. This group is the second to come forward with the winning ticket. A Minnesota man claimed his share last week. But the owner of the third and the final jackpot ticket also sold in New Jersey still remains a mystery. He's not coming forward to claim the cash.

UNIDENTIFIED FEMALE: It's become a competition of who can hold a better press conference. The guy from Minnesota was hilarious. He was so adorable. I don't think he probably loved I called him adorable.

CUOMO: Guys hate that.

(LAUGHTER)

BOLDUAN: But anyway, good luck, congratulations.

PEREIRA: Congratulations to all of them, what a group.

BOLDUAN: Let's get to Indra Petersons in the Weather Center with what you need to know before you head out the door. INDRA PETERSONS, AMS METEOROLOGIST: Yeah, we're looking at some red flag warnings with some fire danger out towards the west today. Unfortunately the situation is only worsening. What we're looking at is temperatures on the rise. A red flag warning meaning high temperatures, low humidities. You can see that will spread into Boise as we go through tomorrow. The reason for that dome of high pressure building into the area. So, unfortunately it looks like tomorrow we temperatures near 100 degrees out there.

Complete opposite picture though out towards the Midwest, even into the Northeast, all thanks to that cold front that already slid by yesterday behind it. High pressure from Canada bringing in lovely cold air. We're talking about temperatures 10, 15 degrees below average. It doesn't even feel like summer anymore. If anything, it feels like fall out here. Look at Indianapolis - 70's. Cleveland, their highs today about 13 below normal, just into the 60's, and all that cool air spread all the way out to the Northeast. New York City today actually only looking for a high of 75.

Now, unfortunately, though, not the same fortune for the south. We're talking about a stationary front again. Meaning that frontal system is stalled out there. So all that moisture coming out of the Gulf is going to be producing heavy rainfall for the next several days. In combination with that we have potential for a (INAUDIBLE) out into the Caribbean. So, if those two combine, we're going to be talking about more rain in that 2-5 inches. We could see potentially anywhere even as high as 8 inches of rainfall. And we keep talking about how much rain they've had. I mean June, July, so soggy going into August.

BOLDUAN: So soggy.

PETERSONS: Not changing.

BOLDUAN: Not changing. All right, thanks so much, Indra. Thanks for the update.

CUOMO: All right, we have a story about a dramatic change in fortune for a 15-year-old boy who is desperately in need of a new heart. Doctors gave Anthony stokes six months to live but then denied him a spot on the transplant list. The reason why they did that caused a backlash, and only then did the hospital reverse course. Here's CNN's senior medical correspondent Elizabeth Cohen.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: And 15-year-old Anthony Stokes will die if he doesn't get a new heart in the next six months. But last week doctors at Children's Health Care of Atlanta said they wouldn't give him one.

UNIDENTIFIED FEMALE: They've given him a death sentence.

COHEN: According to this letter provided to CNN by a family spokesman, doctors said Anthony was currently not a transplant candidate due to having a history of non-compliance. MELENCIA HAMILTON, MOTHER OF ANTHONY STOKES: They said they don't have any evidence showing that he would take his medicine and he wouldn't have any follow-up care.

COHEN: But a family spokesman said Anthony's illness was sudden. He'd never been sick before, so how could he have been non-compliant with doctor's orders? The family thinks they didn't want to give Anthony a heart because he has low grades and was briefly in juvenile detention because of a fight defending his younger brother. News of the rejection drew national attention.

PAMELA BROWN, CNN ANCHOR: Surely if it's a life or death situation like it is for a 15-year-old, Anthony --

COHEN: By late Monday a dramatic change of heart. The family spokesman telling CNN the hospital did a complete 180 and reversed the decision. Anthony is now on the transplant list, they say, and is awaiting a new heart.

The hospital didn't confirm that, but released a statement Tuesday saying "a heart transplant evaluation is an ongoing process based on the patient and his or her family's ability to meet specific transplant criteria. While there's been misinformation circulating, Children's cannot discuss the specifics of this case or any other case due to privacy rules."

However the hospital also said, "our physician experts are continuing to work with this family to establish a care plan and determine the best next steps for the patient."

The family thinks the hospital changed its mind because of media pressure and, what it called, the handiwork of God.

Elizabeth Cohen, CNN, Atlanta.

(END VIDEOTAPE)

BOLDUAN: All right, Elizabeth, thanks for that.

CUOMO: At least it comes out the right way, now he's on the list so the drama continues there. We'll follow that story.

BOLDUAN: Coming up next on NEW DAY, an $11 billion merger between American Airlines and U.S. Airways blocked. Why the Justice Department is so determined to kill the deal before it gets off the ground. And what does that mean for ticket prices for you? Richard Quest is here to break it down.

CUOMO: And you remember this video, right, the bus beatdown, all this backlash against the driver, the driver should have things. This story is becoming more and more about who we haven't heard from, like the parents, like the school, like anti-bullying advocates. What's going on in this story? We'll let you know what a juvenile judge had to say.

(COMMERCIAL BREAK) BOLDUAN: Welcome back, everyone. An attempt to create the world's biggest airline has run into some severe turbulence this morning. The government unexpectedly blocked the proposed $11 billion merger of American Airlines and U.S. Airways saying the super merger would be bad for travelers in the end.

Richard quest Host of CNN International's "QUEST MEANS BUSINESS" and, oh he does, is back with us to talk through this.

So you've got to explain this to me. We see merger after merger after merger over the past few years. What is the Justice Department, why is the Justice Department blocking this one especially so late in the process?

RICHARD QUEST, CNN INTERNATIONAL HOST: Late in the process, that's the whole point. Listen, the bankruptcy judge is due to rule on Thursday. The DOJ comes in at the last moment. The airlines knew that there may be some conditions, but even Tom Horton, the CEO of American Airlines, speaking to me at the beginning of the week, Tom Horton, he wasn't giving anything away and if he knew what was about to come down the road towards him, he's a very good poker player.

(BEGIN VIDEO CLIP)

TOM HORTON, CEO AMERICAN AIRLINES: We've been working close with the Justice Department, people at American, people at U.S. airways making sure they have all the information they need to make an informed view of the merger. And we'll just have to wait and see.

(END VIDEO CLIP)

QUEST: Just have to wait and see. his merger is well and truly on the rocks and the Justice Department gave a variety of reasons why. Look and see exactly what they were talking about.

Substantially the states attorneys general of major states like Arizona, Texas, have also joined in the lawsuit and what they're complaining about, Phoenix, for example, where you've got U.S. Airways headquarters, Dallas, Texas, American Airlines headquarters, they're complaining about the so-called one stops where you fly from one place to the next and they say the prices for all of this would be seriously increased.

Washington National Reagan Airport, one of the key hubs that they are also worried about, a merged American/U.S. Airways would have 69 percent of takeoff and landing slots, too much they now believe for the Justice Department.

They're also concerned about strategy. Airlines like U.S. Airways with their advantage fares, they say they would be pilled out if this deal went to head. But, I head Kate say, other deals went to head so what was wrong with this one?

This is what happens if you're last to the party. Delta/Northwest, ding! Approved. United/Continental, that one happened in the teeth of the recession, these two airlines needed to do a deal, ding! Approved. Things are getting better, passengers are coming back, profits are starting. Now the Justice Department is worried about competition. They fear there's too much cooperation, ding! Unh-uh, it gets blocked. That's the situation. It looks grim. I have to say the Justice Department has a very enviable record when it comes to actually blocking deals.

BOLDUAN: So this late in the game can the airlines do anything to try to mitigate these concerns or is this essentially doomed?

QUEST: They say they will fight a vigorous and strong defense.

BOLDUAN: Okay.

QUEST: And they have to, frankly, because what the Justice Department is complaining about is strategy. They don't just want to lose a couple of slots here or there. They are talking about strategy in the airline industry. For American Airlines, now this is really interesting, they're in bankruptcy chapter 11. Their whole exit from chapter 11 is predicated on this merger. If this deal doesn't go ahead and can we, please, see if we can find plan B? I'm looking for plan B.

(CROSSTALK)

BOLDUAN: A lot of paper here.

QUEST: -- because they will have to go back to the drawing board, come up with a new strategy, and it will take a lot longer for American to come out of chapter 11. For the traveling public, by the way, if you're getting on board U.S. Airways, American Airlines, today, next week, next year, don't worry about a thing, both will be around.

BOLDUAN: They'll be here, but what does it mean for your ticket prices?

CUOMO: Right now probably nothing, right, but because under the reorganization laws and bankruptcy they'll get more time, that's what they're doing, the government is protecting them but they have to go to the Justice Department first and get pre-approval of whatever that package plan is to get out.

QUEST: What will happen now is that they will go back to the bankruptcy judge tomorrow. He won't be able to approve the merger because the Justice Department is now litigating for a permanent injunction, and then you have to either negotiate, abandon or come up with plan B.

CUOMO: They'll need plan B.

BOLDUAN: I'm surprised they were caught so surprised, so on their heels on this one.

QUEST: They suspected something was coming. Most of us thought --

BOLDUAN: Thinking there was not much they could do until it happened, right? QUEST: Most of us thought it would be Washington National and they'd have to divest some slots. Not this.

BOLDUAN: Richard Quest doing it the only way Richard Quest can, explaining it to us all. Thank you, Richard.

CUOMO: Let's take a quick break here on NEW DAY. When we come back, question, would you call this bullying? It's blurry but really obvious, isn't it? So, why aren't more people coming after the suspects and saying, hey, let's address this, let's talk about it? All we know so far is that three people responsible had their day in court, juvenile court. We'll tell you what the judge said.

BOLDUAN: And I have a feeling Richard Quest likes this show as well, the star of "Duck Dynasty" may soon be looking for another job, maybe in Congress. We'll tell you why some supporters say this self- proclaimed red neck millionaire would be the perfect candidate.

(COMMERCIAL BREAK)

CUOMO: Old school this morning. Old school. I like it. Welcome back to NEW DAY. It is Wednesday, august 14th. I'm Chris Cuomo.

BOLDUAN: I'm Kate Bolduan, good morning, everyone. We're here with news anchor Michaela Pereira. Coming up in the show, three teenagers, you remember this story, they were charged in the brutal beating of a younger student on a school bus. They faced a judge and we're going to tell you what unfolded in the courtroom.

CUOMO: Plus Coca-Cola is out with a new ad touting the safety of artificial sweetener. But are the facts behind it going to leave a bad taste in your mouth?