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Obama Silent on Egypt; Gingrich: GOP Has "Zero" Healthcare Ideas; Google: Your Emails Aren't Private; Report: Ex-NFL Players Will Get High; Exercise Helps Insomnia

Aired August 15, 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: Let's go to CNN's chief national correspondent John King to talk more about this.

So, John, we have Secretary of State Kerry came out yesterday condemning the violence very strongly. We did hear from Josh Earnest, the president's spokesman. But there's criticism that we have yet to hear from the president himself. Is that fair -- is that fair criticism of him at this point?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Sure, it's a fair criticism because this is such a huge international story. It's also fair that the president should get a vacation.

But this curse, if you will, of August happens to every president. They go off on vacation, whether Democrat or Republican. Something big happens in the country or the world and there's a day or two they can decide if they can stay on vacation, do I have to speak out.

But the reason this is a big issue and the reason people are saying where is the president is this is a bet gone bad by the Obama administration. Make no mistake about it. Remember, Kate, they wouldn't call this a coup.

They didn't like the Morsy government. They thought the Morsy government was being too oppressive. They thought the Morsy government was too anti-West. So, they made a bet that they would get rid of the Morsy government but move to democratic elections.

Now they see things happening that are simply against the administration's wishes. You could see and hear the frustration of Secretary Kerry yesterday. He came out and spoken very firm words. Now, the administration has to decide what can we do to change the Egyptian's government's behavior?

At the moment, the biggest threat they have is to end the joint military exercise. You'll hear voices in Congress saying, cut off the billions of dollars in U.S. aid.

BOLDUAN: But are there any good options before the administration at this point? I get the sense that there really isn't because a political solution does not seem like it's coming any time soon.

KING: That's the hard part because, again, you'll hear people say, why do we give the Egyptian government military assistance? Why did they get billions of taxpayer dollars when you see what they are doing? And the administration will say that's our only leverage. That we say we're not giving you any aid, then they're not going to listen to us at all.

So, when they're not listening right now, it does give more volume, more credence to those who are saying cut off the aid. Privately, the administration and veteran diplomats of both parties will say that's a huge risk. Once you cut off the aid, where else will they turn?

Secretary Kerry has tried to rely on the United Arab Emirates, the Qataris, other governments in the region to put pressure on Egypt. The United States is going to have to step ahead of that, if you will, and do it itself.

BOLDUAN: I think we're going to have to hear more at the very least and soon. I think it's something everyone kind of understands.

I want to talk about an issue that's happening here at Oklahoma. Talk about a pretty big political mess. The administration is now announcing they are delaying yet another part of the implementation of the president's health care law -- this time having to do with a cap on your out-of-pocket expenses when it comes to health care.

This is, what, the third delay of a part of the law in recent months. And it was really buried in some bureaucratic language at the Labor Department. Does this really offer a clear opening for Republicans?

KING: Absolutely. Let's focus first on the policy. This is the health care law affects everybody, whether you favor it or whether you opposed it. It affects everybody.

So, from a policy standpoint, these delays, the hiccups, the changes are going to frustrate people. This one particularly, though, could have a huge political impact because as you mentioned, hidden in bureaucratic language, the end result is that when these changes kick in, the administration promised for most Americans cost would go down. Now, it is saying at least in the short-term, for many Americans, your costs could be higher than anticipated.

And you bet, Kate, you know the Republicans in 2014 are trying to make opposition to Obamacare. The implementation of the law their huge rallying cry, their huge turnout -- this is big government gone bad. If it starts costing Americans more money, the Republicans will try to benefit politically without a doubt.

BOLDUAN: And is it enough, though, for Republicans to benefit the way they want? Which would be repealing the president's health care law? I ask this because Newt Gingrich came out with an interesting criticism of his own party, saying the problems Republicans have is they have zero response when they say let's repeal Obamacare. They don't have a response for what should be put in its place.

KING: It's just vintage Newt Gingrich and it's an interesting point. Now, there are plenty of Republicans who saying we don't like Obamacare, but we would like to do this. A little government, a little market help to expand access, a little government help, little market to reduce some costs.

But those Republican policy alternatives, again, whether you agree or disagree, get lost in the volume. Because they are so visceral in their opposition to Obamacare, and it's no, no, no, fight it, shut down the government. So, former Speaker Gingrich is trying to say the Republicans can't just be the party of no. They have to be no, this, and here's our alternative.

Many Republicans will tell you, in the short term, they think just no is enough to rally their base. That's why we have elections.

BOLDUAN: That's why we have elections. And one thing Republicans seem to be having right now is speaking in one message on many topics, including that.

KING: That's an excellent point.

BOLDUAN: All right, John. Thanks so much. We'll talk to you in a bit.

KING: Thank you.

BOLDUAN: Thank you.

CHRIS CUOMO, CNN ANCHOR: It brings to mind an old political phrase. Any jackass can kick down a barn. But it takes a good man or woman to build one.

BOLDUAN: It's smart policy and smart legislating is not an easy thing. I'm not pretending I can do it.

CUOMO: The politics of they stink is not enough anymore. You need to be better than that.

BOLDUAN: It's an easy sound byte, though.

CUOMO: Both parties. It is. We play it. That's for sure.

All right. Coming up on NEW DAY, worth taking a break in the morning routine for this. Here's the question: who is reading your e-mails? If you have a Gmail account, you're going to want to hear this. A shocking confession about your privacy from Google, just ahead.

BOLDUAN: Plus the moment the world has been waiting for -- a bold attempt to set the world record for blobbing. What's blobbing? You'll find out.

CUOMO: My grandmother held that right until 1987.

BOLDUAN: Really?

CUOMO: No.

(COMMERCIAL BREAK)

CUOMO: All right. Let's go around the world now starting in India, where hope is fading fast for any survivors after an explosion and fire onboard an Indian navy submarine.

CNN's Mallika Kapur has more from Mumbai.

(BEGIN VIDEO CLIP)

MALLIKA KAPUR, CNN INTERNATIONAL CORRESPONDENT: Rescue and salvage operations on the damaged submarine are going on behind these port gates. This is as close as we can get to it because it's in a highly protected defense area which is controlled by the Indian navy and no one from the media is allowed to go in. All 18 crew members on board the submarine are now feared dead.

Speaking to the nation earlier today on independence day here in Indian, the prime minister said, "We salute the brave hearts who have lost their lives."

What caused the explosion? We don't know yet. The navy says it's ordered an investigation.

Kate, back to you.

(END VIDEO CLIP)

BOLDUAN: All right. Thank you.

Now to Syria where U.N. experts will be investigating claims the Assad regime used chemical weapons against its own people.

Mohamed Jamjoom, the latest from Beirut.

(BEGIN VIDEO CLIP)

MOHAMED JAMJOOM, CNN INTERNATIONAL CORRESPONDENT: A United Nations chemical weapons inspection team is poised to go to Syria soon. The U.N. says that the team will travel to Syria imminently, that's after the government agreed to the terms of the visit. Now, in the past several months, there have been numerous allegations about chemical weapons usage in Syria. Some had said that the Syrian government had used chemical weapons. Others have alleged that the rebels there have used chemical weapons.

In June, the White House stated that the Syrian government of President Bashar al-Assad had used chemical weapons including sarin gas against rebel forces. The Syrian government denied it, but that's what caused the U.S. to make the decision to start providing military support to rebel forces in Syria.

Back to you, Kate.

(END VIDEO CLIP)

BOLDUAN: Mohamed, thank you so much.

And remember the fresco of Jesus Christ that was ruined by an elderly church parishioner in Spain. Well, people are now lining up to see it. CNN's Erin McLaughlin has the story.

(BEGIN VIDEO CLIP)

ERIN MCLAUGHLIN, CNN INTERNATIONAL CORRESPONDENT: Kate, at first the restoration of a priceless fresco of Christ by 81-year-old artist Cecelia Jimenez drew some horrified gasps and plenty of laughs when it was unveiled in Spain over a year ago. The painting had clearly been disfigured.

Now, it looks as though Jimenez will be the one with the last laugh. It since becomes something of a tourist attraction and next week, the image's very own merchandising deal. And Jimenez is set to earn 49 percent of the profit.

Back to you, Kate.

(END VIDEO CLIP)

BOLDUAN: Wow. All right. Erin, thank you so much.

CUOMO: All right. A little business news for you. A "New York Times" Web site is back up and running after it went down for two hours on Wednesday. The company blames the disruption on a technical glitch during regular maintenance. But many others are questioning whether it was a cyber attack.

Many like Christine Romans. What's the deal? Any reason to believe it was something more than they said?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Look, they admitted last time when they thought it was a cyber attack by servers attached to the Chinese military. That was earlier this year. This time, they say, no, it looks like it was just some sort of a glitch during an automated update and they are back online. But two hours yesterday in prime time for the "New York Times." millions of viewers couldn't see the stories they usually see.

CUOMO: You know what site never goes down? CNN.com.

BOLDUAN: Especially, NEW DAY CNN.com.]

CUOMO: Yes, never goes down.

BOLDUAN: All right. I got to move on to the story about Google. So many people are interested in this. They are taking heat understandably. In court filings, it came out that they said, that you shouldn't have any kind of reasonable occupation of privacy in your Gmail.

So, is this confirming what so many people suspected for a long?

ROMANS: Let me show you exactly what they said in this court document. They said -- they were quoting a case in the 1979 case, the lawyers for Google. They said, "A person has no legitimate expectation of privacy in information he voluntarily turns over to third parties."

I wanted to show the language they are using, quoting that '79 case, because they are saying, you know, look, we have automated servers that look at your e-mails. They are looking at computers and e-mails searching for key words for spam and stuff so we can move it out of there. They are trying to say it's just like when an assistant -- for example, someone sends Chris Cuomo a letter. And someone opens Chris Cuomo's mail and put s it in the different inboxes and outboxes. That's what they are saying their servers do. But consumer watchdog very upset about this. They said its' stunning (ph) and wrong.

PEREIRA: No legitimate expectancy of privacy? There's going to be a lot of people that said, no way, I can't do that. Is there only option to say, I'm not going to use Gmail anymore, as my email provider?

ROMANS: Look, their servers are looking at your stuff. I mean, they're looking at the address it's coming from. They are looking at the address it's going to. They are scanning for key words, although to tell you advertising. And I guess if you're so concerned about privacy online --

PEREIRA: You opt out.

ROMANS: You got to opt out. I don't think there's anything else.

CUOMO: The issue is why? The issue is why?

BOLDUAN: There is no privacy online no matter what.

CUOMO: The issue is why they are looking. It's the same issue that we have with surveillance on the governmental level. Why are you looking?

What's troubling people is more and more it seems like there's opportunism with these ISPs like Google.

We were talking before. I'm talking about whether to buy a Chevy or a Ford. That's not just putting me into different boxes. That's paying attention to what I say to sell me things and that's a little bit of a bridge.

ROMANS: So, what do you pay for your Gmail?

(CROSSTALK)

PEREIRA: That's the point. Our right is to have a free service?

CUOMO: Tell me you're going to sell us stuff. Don't be sneaky, Romans. Don't be sneaky, Romans.

(CROSSTALK)

BOLDUAN: But you're making a good point. It seems a little sneaky it has to come out in court filings. There isn't just an up front statement of we're going to -- (CROSSTALK)

ROMANS: They did issue us a statement. They said, "We take our user's privacy and security very seriously. Recent reports claiming otherwise are simply untrue. We have built industry leading security features into Gmail. No matter who sends an e-mail to a Gmail emails, those protections apply.

BOLDUAN: The problem is it's not going to change anything. We're going to use Gmail because --

PEREIRA: I might read the small print more carefully.

BOLDUAN: Twenty-seven pages long.

CUOMO: Let's just put in to regular people language. If I say to you, hey, I want you to know, I take your safely seriously. I want you to know. Oh, by the way, you have no expectation of any safety. What?

(LAUGHTER)

BOLDUAN: Thanks so much, Christine.

ROMANS: You're welcome.

BOLDUAN: We should talk more about this.

Comings up next on NEW DAY: the battle for Baby Veronica. Could there be a solution to the custody case that's drawn national attention?

I just don't get -- of course, everybody is reading your staff online if they're providing you service, but if they say you have no expectation of privacy.

(CROSSTALK)

(COMMERCIAL BREAK)

PEREIRA: Oh, they will jump. Welcome back to NEW DAY. We have today's must-see moment. We're going to go blobbing. That's what these guys who we believe are extreme athletes and stuntmen are doing. You see the water stunt.

It involves somebody jumping from the cliff and they jump on to an inflatable air bag, the blob, and launch the person on the other end as high as they possibly can. And off we go. Actually, it looks pretty cool. And pretty safe, because the guy, I think, actually has some safety gear on.

CUOMO: First of all, he needed a second step to get off that cliff. That doesn't look that safe.

PEREIRA: It's that guy right there who's probably like, why did I agree to do this again?

BOLDUAN: I would tell you, I would totally do that.

PEREIRA: That looks fun.

CUOMO: Which? The jumping on part or the launching --

(CROSSTALK)

BOLDUAN: You jump, I'll launch.

PEREIRA: The weight difference.

BOLDUAN: Yes. If I jumped, he'd go like this.

(CROSSTALK)

(LAUGHTER)

CUOMO: You'd still be traveling. You'd become a satellite.

(LAUGHTER)

BOLDUAN: That was neat.

CUOMO: That was great. That was a must-see moment is what that was.

BOLDUAN: That was a must-see moment.

CUOMO: That is what it's called? Who knew? I've been watching the show enough.

PEREIRA: You really should be attentive.

CUOMO: Coming up on NEW DAY, tensions still running high in Egypt. We're going to take you there. The Muslim Brotherhood promising today more protests, this after 400 people killed already. What's going on in the ground? What may happen next? We will be live in Cairo with you.

BOLDUAN: Plus, we're learning more about the day Hannah Anderson was kidnapped and what happened inside the home of the man police say murdered her mother and her brother. We have those news details, coming up.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JIMMY KIMMEL, HOST, "JIMMY KIMMEL LIVE": There's much celebration in North Korea right now. North Korea has announced they've developed their first ever smartphone. It's called iRong (ph). The iRong is just like an iPhone, but if you ask Siri any questions, she reports you to the police.

(LAUGHTER)

CONAN O'BRIEN, HOST, "CONAN": According to a new study, most men would like women to occasionally pick up the check.

(APPLAUSE)

O'BRIEN: The study also found that most women would occasionally like to be paid as much as men for doing the same job.

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

BOLDUAN: Well played, Conan. I like that one very much.

PEREIRA: We do, we do. Silence.

(LAUGHTER)

BOLDUAN: Sometimes, silence is the best. When it comes to Chris, that's all the time.

CUOMO: I feel that I often take a lot of blame for mankind.

BOLDUAN: You do not.

CUOMO: And it is all you.

BOLDUAN: We're just speaking truth to power.

CUOMO: Man surrounded by non-man.

(CROSSTALK)

CUOMO: Here's something else I don't understand that maybe you can help me with, all right? We're worried about drugs in professional sports, right?

BOLDUAN: Yes.

CUOMO: All right. Then why is the NFL planning on giving performance-enhancing drugs to former players in order to help them better test their current players? Is that the way to do it? Andy Scholes is here with the "Bleacher Report." Help me, my man friend. What sense is going on here?

ANDY SCHOLES, BLEACHER REPORT: Yes, Chris. This is kind of -- this is unheard of. You know, according to "USA Today," the NFL is planning on having about 100 former players take part in a human growth hormone study. Now, two-thirds of the former players would receive HGH while the others would get a placebo.

Now, the goal of the study is to determine what a normal level of HGH is for an NFL player and what would be considered a violation under the new testing policy. The NFL hopes to start testing for HGH this season.

Patriots nation went in a complete freak out mode yesterday when Tom Brady went down holding his knee during the team scrimmage with the Bucks. Brady left the scrimmage early, but it looks like Patriots fans can let out a big sigh of relief. An MRI on Brady's knee came back negative and he is expected to be OK. To see the video of the play that called Brady's injury, you can head over to BleacherReport.com.

Braves/Phillies last night in Atlanta, an injured bat finds its way on to the field during the second inning. Who better to handle this situation than a bat boy. He goes and gets the bat and takes it into the dugout. Even going to scare some of the players with it as you can see right here. Bat boy takes the bat into the outfield. The bat just flies away.

BOLDUAN: That is a good use of your myth (ph). That's a very good use of your myth.

CUOMO: I wonder if it was put on there as some type of signal to the umpire. You know the whole blind as a bat thing?

BOLDUAN: Right, exactly. No. It's not like throwing an octopus on the ice in hockey.

CUOMO: I never understood that.

BOLDUAN: I still don't. That would be tomorrow, Andy.

SCHOLES: Work on that.

BOLDUAN: Exactly. We'll work on that one. Thanks so much.

You hear the music, everyone, and you know what that means. It's time for the "Rock Block" a quick roundup of the stories you'll be talking about today. First up, Michaela.

PEREIRA: All right. Let's look at the papers. From "USA Today," relief for insomniacs. And a study confirming exercise can, indeed, help you sleep better. Don't be impatient, though, because it does take some time to work.

In "The New York Times," a bold plan for economic revival in Gary, Indiana. Selling vacant homes for a dollar, Kate Bolduan. The city has an estimated 10,000 abandoned properties.

In "The Wall Street Journal," the man behind the Harlem Shake out with a new single. Baauer says he hopes "Higher" will be a hit without the help of any viral video.

Time now for business news and Christine Romans.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Good morning. Watch Cisco stock today. It's down in the free market. It fell nearly 10 percent after the close. The CEO, John Chambers, announcing 4,000 Cisco job cuts and less than stellar earnings.

Futures down this morning after stocks slid on Wednesday. The Dow had its largest Wednesday point decline since June. One bright spot, Apple, Apple closed up almost two percent. Apple shares up again this morning. And we're watching for Wal-Mart earnings. They could be out any minute. America's biggest employer, the world's largest retailer, expected to report a good size increase in its profits. We'll be watching.

Finally, let's get to Indra Petersons for the weather.

INDRA PETERSONS, AMS METEOROLOGIST: Yes. I got a little summary for you. We're talking about a lot of heat out west, but fall-like temperatures into the northeast. Head to the south today, we're going to be talking about more flooding. Unfortunately, that's going to last through the weekend. So, starting out west, red flag warnings now for Utah and Idaho.

Unfortunately, right on the fire line, temperatures going near 100 degrees today with low humidity. No assistance there. Go down in the southeast. We're talking about a stationary front combining with some tropical moisture. Meaning, a heavy rain expected really even stretching all the way through the Carolinas as we go through the weekend.

But I want to end on a good note. So, this time, we're going to end with the northeast where I don't want to hear any complaints, hmmm, someone right there in the middle. I know -- but yes, temperatures are going to be gorgeous, 70s, about 10 below normal.

BOLDUAN: All right, Indra.

PETERSONS: You're welcome.

BOLDUAN: Nice today.

(LAUGHTER)

BOLDUAN: She's not taking it. Thank you so much, Indra.

We are now close to the top of the hour, which means it's time for the top news.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We had to leave at gunpoint. We don't know what happened after we left to the injured people on the floor.

CUOMO: On the brink. Hundreds now dead, thousands wounded and Egypt at risk of civil war. The U.S. now under pressure to step in.

BOLDUAN: Touching tribute. We're learning more from Hannah Anderson as she speaks out online remembering her mother and brother as police release grizzly new details about the day they were murdered.

PEREIRA: Fighting for Veronica. The adopted parents of Baby Veronica now in Oklahoma trying everything to get the daughter the courts say is theirs back. Why won't her biological family let them see her?

CUOMO: Your NEW DAY starts right now.

ANNOUNCER: What you need to know.

UNIDENTIFIED MALE: It's time for this to be over.

UNIDENTIFIED MALE: With each passing day, we lose another day with our daughter.

ANNOUNCER: what you just have to see.

UNIDENTIFIED MALE: You shampoo your cat. You shampoo your dog. I shampooed my raccoon.

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

(END VIDEOTAPE)

CUOMO: Good morning, everybody. Welcome back to NEW DAY. It's Thursday, August 15th, 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: Coming up in this hour, what caused a UPS cargo plane to go down? Look at that video with -- killing both pilots. We're told no distress call was made before impact, and that the flight data recorder has yet to be recovered. So, what happened?