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NEW DAY

More Wild Weather; Power Knocked Out; Government Shutdown: Day Eight; Debt Ceiling Deadline: Eight Days; What Does Debt Ceiling Mean For You; Death Toll Rising; Fourth Arrested In Driver Beating; Surfer Survives Shark Attack; Details of Daring Terror Raids; Salmonella Traced To California Chicken Plant; Americans Say Shutdown Major Problem

Aired October 8, 2013 - 06:00   ET

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


CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to NEW DAY. It's Tuesday, October 8th, six o'clock in the east. And we are learning why SEAL Team Six was called back from that Somalia raid. It may have been because innocent children could have been caught in the crossfire. We'll give you a live report right ahead from the Pentagon.

KATE BOLDUAN, CNN ANCHOR: And also ahead, the NFL under fire on two fronts, a new documentary and book releasing today accusing the league of putting players' lives at risk by minimizing the dangers of concussions and the battle over the Washington Redskin's name now at full pitch. The president weighed in, and now the NFL is set to meet with the Native-American tribe about it.

MICHAELA PEREIRA, CNN ANCHOR: And from the world of technology, he's one of the richest men in America. There is renewed speculation brewing about Bill Gates' future. We've heard some reports that some big investors are trying to oust him from Microsoft. But now, there's some talk that some are trying to bring him back full time.

The big question this morning, what is with this video of him going viral? The shagradelic (ph) answer, coming up.

BOLDUAN: Wow!

CUOMO: All right. But first up this morning, take a look at the violent weather that tore through the region, stretching from Washington to New England. Thousands are still in the dark this morning. If you are in the northeast, there's a good chance you felt the strong winds or got caught in the rain that flooded roads and caused big travel delays. Let's bring in Indra Petersons. She has a look at all the madness. Good to have you back. Good morning, Indra.

INDRA PETERSONS, AMS METEOROLOGIST: Good morning. This was actually the same storm system, believe it or not, that dumped record snowfall in the Dakotas, eventually spawned tornadoes in Iowa and now made its way through the northeast having about 100 reports of wind damage.

(BEGIN VIDEOTAPE)

PETERSONS (voice-over): A powerful storm hit the east coast Monday with high winds and torrential rain. In Jacksonville, Florida, knee deep water forced residents to use other means of transportation, some helping stranded drivers.

GARRET PARK, HELPED STRANDED FLORIDA DRIVER: Got out of the jeep and started pushing. Luckily someone else came up and started helping me.

PETERSONS: The driver flooded with emotion.

UNIDENTIFIED FEMALE: There's water in my car, everything is just done. I got caught right there.

PETERSONS: The storm swift but strong left destruction in its path.

UNIDENTIFIED MALE: All I saw was a cloud of green leaves and then the tree came down.

PETERSONS: Virginia driver, William Ledford escaped from his damaged car unscathed. Further up the coast in New Jersey, a man survived a close call inside his home.

FRED SFARRA, TREE FELL NEAR GRANDSON'S BED: The ceiling came in from the tree. It missed him by 6, 7 inches.

PETERSONS: The winds so powerful that they knocked out service for thousands of residents up and down the east coast.

UNIDENTIFIED FEMALE: The rain came down extremely hard, wow, look at that. Almost immediately everything was just blowing.

PETERSONS: In the aftermath of the storm downed trees littered the streets. Check out this gigantic tree that crashed on to this home.

UNIDENTIFIED MALE: It's crazy. This tree has been around since I've been 6 years old. I can't believe the size of the hole that's in there.

(END VIDEOTAPE)

PETERSONS: Now here's the good news. That system has made its way offshore. We'll have a full forecast coming up for you in just a bit -- Kate.

BOLDUAN: All right, Indra, thanks so much.

We have now reached day eight of the government shutdown. A new CNN/ORC poll says at least half of the Americans say the government shutdown is causing major problems for the country. Here's the latest from Washington. House speaker insists he does not have the votes to pass a clean spending bill. The president seems to be daring him to prove it now.

The U.S. economy all the while is hinged on whether Congress will raise the nation's debt ceiling. A deadline now only days away. CNN's senior White House correspondent Brianna Keilar is live this morning with the latest. Good morning, Brianna. BRIANNA KEILAR, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning, Kate. Until now, all of these bills that the House and Senate have been passing back and forth have been aimed at funding the government. But that changes today. Now the aim is going to be making sure that there isn't a disastrous default as we come uncomfortably close to the debt ceiling.

(BEGIN VIDEOTAPE)

KEILAR (voice-over): Ramping up the pressure on House Republicans, Senate Democrats will introduce a bill today that would increase the debt ceiling for more than a year. The goal, push this hot potato issue beyond the 2014 midterm elections. The bill has no strings attached, no agreement to change Obamacare, no budgetary bartering.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: I cannot do that under the threat if Republicans don't get 100 percent of their way, they're going to either shut down the government or they are going to default on America's debt.

KEILAR: The president still says he won't bargain with the country's ability to pay its bills.

REPRESENTATIVE JOHN BOEHNER (R), HOUSE SPEAKER: The president's refusal to negotiate is hurting our economy and putting our country at risk.

KEILAR: House Speaker John Boehner insists a debt ceiling increase without some concessions from the White House will never get passed his Republicans. He says the same about a government funding bill though Democrats question that.

SENATOR HARRY REID (D), MAJORITY LEADER: One sure fire way to find out whether the bill would pass is to have a vote on it.

KEILAR: Only one thing is for certain. Americans are not impressed, especially with Republicans. In a new CNN/ORC international poll, 63 percent of those surveyed blame the GOP for the shutdown, 57 percent point finger at Democrats and 53 percent hold President Obama accountable.

Eight days into the partial government shutdown, nine days from breaching the debt ceiling, here are some ways this could all play out. Perhaps a long-term proposal like what the senate is taking up. If that doesn't fly, there could be a short-term measure to buy time or both sides could keep talking past each other until the U.S. defaults and there's bipartisan agreement that would be an economic disaster.

(END VIDEOTAPE)

KEILAR: We are already set up for a cliff-hanger. The Senate, again, is introducing their debt ceiling bill today that would mean a first vote, a procedural vote, Saturday. We may not see a final vote. It could come as late as Wednesday. One day before we are predicted to hit the debt ceiling -- Chris. CUOMO: Brianna, you may have a little progress snuck into that piece there at the end. If they're all saying the default would be a disaster, there is a little bit of progress, right? Because there's been speculation about whether or not it would be that bad if we go into a credit default. So thank you for the reporting this morning. We'll take any hope we can get.

Let's assume that of any political stripe down there, they're starting to see that going into credit default would be economic disaster but why? What exactly would happen? How would it impact you?

Let's bring in Christine Romans. She'll break it down for us. Tell us, Christine, what does it mean?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Very simply it means the Treasury Department is about to run out of money to pay all of its bills? Why, because it can't borrow more money. The United States government is financed. It wouldn't be able to borrow more money and unless Congress raises the debt limit there wouldn't be enough. It would have to rely on $30 billion in cash that's in the Treasury's coffer right now.

There's also daily revenue coming in but that fluctuates so we can't really count exactly on how much is coming in and that's not enough to pay everything. That means there are some very tough decisions. I want to show you what the biggest bills we have are coming due.

November 1st, social security, veterans' benefits, military pay and Medicare all coming in at the same time, you want to pay those, right? These seem like priorities for the government. And then what happens? You don't have any more money. You have to pay what, IRS refunds. Those will be IOUs, government workers, maybe IOUs. This is what you cannot do. You cannot give IOUs for your interest payments. Those absolutely must be paid.

That's what's crucial here. Even China overnight warning the U.S. it expects to get paid. Here's what the big risk is if you don't. Stock markets would most likely plunge here. The value of the dollar would crash. Experts say that just like when you don't pay your credit card bill and it takes a ding on your credit card score, interest rates would rise for the country.

Our borrowing cost would increase that means credit card rates, mortgage rates, car loan rates and ironically our debts and deficits would explode because of those higher borrowing cost. It's really simple. The United States has always paid its bills on time. We don't have a budget, haven't since 2009.

The spending and taxing and priorities of a government are put in a budget, not the debt ceiling. That's the credit limit. It's the budget that you need. That's where you put your priorities, guys.

BOLDUAN: Christine, I mean, you can fight about the politics of this, but you lay out clearly why there's general consensus among smart economists that say this could be catastrophic if we don't raise the debt ceiling and why maybe we don't know what's going to happen afterward but why even test it?

ROMANS: Don't want to test it.

BOLDUAN: No, you don't. All right, Christine, thanks so much.

We're watching that big story of course. But there are many big headlines we're watching this morning. Let's get straight to Michaela for that.

PEREIRA: All right, good morning, guys. Good to see you. Thank you for joining us. We'll take a look at these headlines now. The death toll from last week's boat sinking off the Italian coast now has more than doubled to 231. You'll recall 111 bodies were recovered in the immediate aftermath of that disaster. Survivors say the trouble started when the engine stopped less than a mile from the island of Lampedusa, a common destination for African refugees. About 500 African immigrants were believed to be aboard, 155 survived.

Praise from Secretary of State John Kerry for Syrian President Bashar Al Assad, Kerry giving the Syrian leader a verbal pat on the back for the quick pace of chemical weapons destruction in Syria. State Department officials say Kerry's comments were meant to encourage the regime's continued cooperation with the weapons inspectors and do not reflect a softening of the administration's position that the Assad regime must go.

Another arrest in connection with that assault on an SUV driver in New York City, he is now the fourth person to face charges. Several off duty undercover officers with the New York Police Department could also be facing trouble. They were part of the biker club behind the beating. They did not come forward. Sources tell CNN they were concerned about blowing their cover.

Making news, the Supreme Court set to hear a critical challenge to limits on campaign contributions. Oral arguments set for today in the case of McCutchen versus the Federal Election Commission, a Republican activist claiming his free speech rights are being violated by laws that say how much he can contribute to political campaigns, pacts and committees.

A surfer in Northern California says it was the perfect day for surfing with old friends until he was bitten by a great white shark. Jay Scribbler says he was waiting for a wave when the 8 to 9-foot shark came out of nowhere, biting his board and his thigh. Luckily he says the bite didn't sever an artery or damage any tendons. He says he will definitely surf again, however, with a little bit of trepidation. I think once bitten, right?

BOLDUAN: That's not the surfer mentality.

PEREIRA: No. He looked awfully happy in that bed.

BOLDUAN: Probably because he was in the bed.

PEREIRA: Apparently there was an attack in that very same area and the guy lived. That was about a year ago. BOLDUAN: All right, Michaela, thank you.

PEREIRA: You're welcome.

BOLDUAN: Let's get back to Indra now. Indra, you have the violent weather you're talking about in the northeast overnight. So how's the forecast for the rest of the country.

PETERSONS: Yes, the good news is obviously we're seeing that continue to see that make its way offshore right now. You can actually see this radar from yesterday, pretty strong system as its made its way across that squall line really held together, had about 100 reports of storm damage coming from wind, downed trees and even overturned vehicles. That's what we're watching.

The big change today will be, of course, the temperatures now that cold air is in place. This is yesterday's highs. Don't get too excited. New York yesterday you were 76 degrees. Now that we're moving that cold air into the vicinity, temperatures drop down. Keep in mind, this is where they should be. We've been above average for so long. It will feel like a big chill.

Moving into tomorrow, we're going to those temperatures drop even further as more and more cold air does start to move into place. That's the northeast. Down to the southeast, we still have the frontal system hang offshore. Just off of it, a low has developed and making its way slowly day by day up the coastline.

It's bringing the moisture off the coastline and when we start talking about rain here, again, day by day, we start it off in the Carolinas, eventually make its way to the Atlantic by the middle of the week. We talk about that into the northeast. Tapering off as it does make its way up. Pacific Northwest, it's that time of year, day after day, another storm making its way in through the Pacific Northwest. Temperatures there are dropping about 20 degrees below normal. Pretty nice day today, considering what we saw yesterday.

BOLDUAN: All right, thank you.

CUOMO: It is all relative. Coming up on NEW DAY, we'll take a little break right now. They storm Somalia, searching for the leader of the al Shabaab terror group. But then an elite Navy SEALs team pull back. Now we know why. We'll tell you.

BOLDUAN: Also ahead, almost 300 people across the country sickened from a salmonella outbreak. Federal officials think they know what caused it, but is the government equipped to handle outbreaks like this with the government partially shut down?

(COMMERCIAL BREAK)

BOLDUAN: Welcome back to NEW DAY.

We're learning more this morning about why Navy SEALs aborted an attempt to capture a suspected al Shabaab leader in Somalia. It became clear they could not take him alive and complicating matters, the SEALs reported seeing children at the compound.

For more on this, let's get straight to Pentagon correspondent Barbara Starr who's been digging in on that story.

Good morning, Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning, Kate.

Well, it's taken a few days but the after-action reports are coming in and there are new details.

(BEGIN VIDEOTAPE)

STARR (voice-over): In southern Somalia, it quickly became the most dangerous mission for SEAL Team 6 since they killed Osama bin Laden, according to one senior U.S. military official. The mission: to secretly enter a hostile town, capture and bring back alive a man known as Ikrima, a top operative in al Shabaab, the Somali-based al Qaeda affiliate. A man the U.S. believes is planning more attacks.

But after the SEALs make their way to their target, a heavily defended seaside villa, they are spotted. A massive firefight breaks out as more and more militants gather. The SEALs cannot capture the target, they abort the mission.

A top Pentagon official insists the SEALs were not run off by al Shabaab fighters.

GEORGE LITTLE, PENTAGON PRESS SECRETARY: Military personnel on this objective during the raid literally went to the door step of this al Shabaab terrorist and discovered that there were civilians in the surrounding area.

STARR: A military source says the SEALs also report they saw children at the compound, another factor in ending the raid.

And he says there are other U.S. forces nearby to respond if the fight had grown worse.

We are also getting a clearer picture of the mission in Libya. In Tripoli, Army Delta Force commandos in four vehicles surround Abu Anas al Libi, a senior al Qaeda operative, while he is still in his car. His son shows us the vehicle, shattered glass from smashed in windows, the only evidence of a very different capture mission that was successful and over in moments.

(END VIDEOTAPE)

STARR: CNN has also learned that the commando teams practiced and rehearsed both missions in the weeks and days before they occurred, even as they were still gathering intelligence and surveying their targets -- Chris.

CUOMO: All right. Barbara, thank you for the update. Appreciate it. We also want to tell you this morning, another new story. Getting to the bottom of a salmonella outbreak, authorities think a chicken processor in California is the source of the problem that made 300 people sick in 18 states.

Let's bring in CNN's senior medical correspondent Elizabeth Cohen, following the story for us.

Good morning, Elizabeth. What do we know?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Good morning, Chris.

What we know is that 278 people in 18 states, mostly in California, have become sick from salmonella, associated with Foster Farms Chicken. We have the lot numbers of the chicken that may be associated with this outbreak.

This is usually the part I tell you, throw the chicken away or bring it back to the farm. But in fact, Foster Farm says there is no recall. And they say products are safe to assume, that's a quote. They say if handled properly and fully cooked.

So, I will leave it up to you viewers if you want to fully cook that chicken and eat it or if you'd rather just throw it away.

CUOMO: And we all know what common sense tells us.

Let me ask you this, what else common sense tells us, Elizabeth? What's going on with this situation? Is this status quo? This happens from time to time? Do you believe there's a government impasse here because of what's going on with the shutdown? What do you think?

COHEN: Right. I mean, these outbreaks happen if there's a shutdown or not. And, Chris, I think the question is, can the CDC or did they fully respond in the way they would have if there weren't a shutdown because they furloughed most of the employees.

So, Tom Frieden, the director of the CDC put out a tweet that's really pretty scary. He says they protected you yesterday, can't tomorrow. Microbes and other threats didn't shut down. We are less safe.

So, when the director of the CDC is saying we're less safe, I don't know, I guess you have to take him at his word, that perhaps things could have gone more smoothly in this case.

Could people have been saved this sickness of the CDC were fully staffed? I guess we'll never know.

CUOMO: But we do know they're responding the best they can right now. The word is getting out. And that's basically what they do in these situations.

COHEN: Right. That's correct.

CUOMO: We'll have to keep following it. Elizabeth Cohen, thank you very much. Stay on it for us. Appreciate it.

Now, you know the discussion is. The salmonella, can they help us? Do you think we're less safe because of this? Do you think it's hype? Tweet us, let us know, #newday.

BOLDUAN: Coming up next on NEW DAY, more and more Americans furious with Congress and the president over the government shutdown. So, when will negotiations begin and if they don't, which party will take the biggest hit? Your political gut check is ahead.

CUOMO: Plus, the Washington Redskins -- the name doesn't sound P.C. And many say it isn't P.C. But will it change? That's the question. Gone on for years this debate.

But the president weighed in. The team is meeting with the Native American group. We'll give you the scoop about what may come next.

(COMMERCIAL BREAK)

ANNOUNCER: You're watching NEW DAY with Chris Cuomo, Kate Bolduan and Michaela Pereira.

CUOMO: I didn't want to ruin the song by injecting my own voice. I just hummed.

BOLDUAN: I liked it.

CUOMO: Which gave me an odd sensation at the top of my mouth. It's not going away.

Welcome back to NEW DAY, it's Tuesday, October 8th.

I'll be fine.

Coming up on the show, the Washington Redskins battling a big controversy if you think about it, not about their starting quarterback, RG3 will be just fine. It's the name of the team that offends people and it has for a long time. So, now, the president is stepping into the debate. We'll tell you what may happen, next.

BOLDUAN: And what will become of Bill Gates, that's what some are asking. There are reports that shareholders want the Microsoft chairman to step down. But will he turn the tables on them and come back full time.

And then there's this -- goofy video of Gates that you'll have to see to believe. And try to understand.

CUOMO: I've never liked him more than I do right now.

BOLDUAN: Exactly.

PEREIRA: It makes me chuckle. It really does. We'll show it to you again.

BOLDUAN: Exactly. PEREIRA: Let's bring you up to date on the latest news.

A nasty soaking raising above average temperatures along the Northeast, much cooler weather in and around New York this morning after a heavy night of really heavy rain and gusty thunderstorms. Those storms leaving behind power outages, snapping trees, there's localized flooding and even some property damage.

It is day eight of the partial government shutdown. Nine days until we hit the debt ceiling. Senate Democrats are set to introduce a bill to increase the borrowing limit. President Obama and House Speaker John Boehner remain divided over whether there's support in the House to re-open the government.

A new CNN/ORC poll show 63 percent of people blame the Republicans while 57 percent blame Democrats.

More saber-rattling from North Korea. Pyongyang putting its military on high alert, and warning the U.S. of disastrous consequences in response to its latest aggression. The treat comes as U.S. moved a group of ships, including an aircraft carrier into a South Korean port.

The ATF preventing the publication of a new book about the failed Fast and Furious operation. The program allowed 2,000 guns to cross into Mexico, then lost track of hundreds of them. At least one of those guns was linked to the death of this man, border agent Brian Terry. Now officials say federal agent and whistle-blower John Dodson's account of the program is bad for morale.

Dodson will join exclusively live later this morning at 8:20 Eastern.

A court hearing today to decide what exactly to do with a 9-year-old runaway who slipped past security and boarded a flight from Minneapolis to Las Vegas. Delta Airlines saying it is still reviewing surveillance video to determine exactly how that boy traveling alone got on to the plane unnoticed without a ticket. Officials say in the days before, the young stowaway also stole a car and snuck into a water park without paying.

A store clerk on long island stared down the barrel of a would-be robber's gun then pulled out -- oh, my goodness, his own weapon, a machete. Newly released surveillance video shows the clerk chasing the gunman out of the store, through the parking lot.

The attempted robbery happened late last month. Police say they have been getting tips but so far have not made any arrests.

CUOMO: Call machete.

PEREIRA: That guy is not fooling around.

BOLDUAN: That is -- I don't know.

PEREIRA: He's got a gun.

BOLDUAN: I'm just going to say maybe not a smart strategy.

CUOMO: I'm going to rob you, what is your name? My name is machete. That man should have run immediately. Haven't you seen the movie?

BOLDUAN: Apparently he has.

PEREIRA: He runs all right.

BOLDAUN: Because he ran.

PEREIRA: He got wheels.

CUOMO: That was one of the most low percentage plays. There's nobody in the safety community will tell you to do anything like that ever. He's a lucky man.

BOLDUAN: He is a lucky man.

CUOMO: Machete.

BOLDUAN: Exactly. One more time. Our producers in the back are cracking up.

Which means that it's time --

PEREIRA: I just snorted.

BOLDUAN: We have lost it.

OK. Let's move on to our political gut check if I can hold it together.

Is the White House giving an inch? The Obama administration suggesting they could be open to a very short-term increase in the nation's debt ceiling. This as public opinion towards the shutdown becomes more hostile.

A new CNN/ORC Poll showing more than half of Americans think the government shutdown is causing major problems for the country.

CNN's chief national correspondent John King is back and here to break it all down.

Good morning, John.

So, you have the poll saying it would cause major problems for the country and you have this poll that is also probably not surprisingly telling us that there is blame to go around for this shutdown.

Who are folks angry at? Everyone, basically. Republicans, Democrats and President Obama. Republicans with more of the blame but Democrats are pretty close right behind them.

They all need a way out of this at this point. Any idea where that is?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: They all do, Kate.

No. The answer to that is no. Forgive me for interrupting -- in the sense that you is a senator here who has a compromise plan, a House member who says maybe it will play out like this.

But what you don't have is that basic trust and the people who matter most, the people who can deliver a deal to the finish line sitting down together. In part because the president says he won't negotiate at all on the issue of a government shutdown, and he won't negotiate for the debt ceiling increase, he won't negotiate as part of that bill. Maybe he talks separately with the Republicans about something else.

So, the trust deficit at the moment is still in the way of any progress. We're on day eight. That debt ceiling deadline now within 10 days from now. The government would run out of money within a week or two of that.

Forgive me, but you should have Bill Murray come in and do this for the next couple days because it seems like Groundhog Day.

BOLDUAN: It sure does. I mean, you're seeing -- movement is not the right word -- you some kind of action, Senate Democrats, they're kind of setting in motion today a vote on a clean debt ceiling increase.