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NEW DAY

"I Will Talk About Anything"; Four Soldiers Killed In Afghanistan; Warning From Business Leaders; U.S. To Pull Some Egypt Funding; More Chemical Watchdogs; Body Found In Stairwell; Nobel Prize In Chemistry; Boston School Bus Drivers Return; Widespread Salmonella Outbreak

Aired October 9, 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 Wednesday, October 9th, six o'clock in the east. You heard elected officials say lately, look, shutdown is undesirable, but it's not that big a deal. Tell that to the families of deceased service members who aren't getting their benefits. Senator John McCain summed up what many are thinking when he was on the floor of the senate. Take a listen.

(BEGIN VIDEO CLIP)

JOHN MCCAIN, (R) ARIZONA: I'm ashamed. I'm embarrassed. All of us should be. And the list goes on and on of people of innocent Americans who have fallen victim to the reality that we can't sit down and talk like grown-ups.

(END VIDEO CLIP)

CUOMO: People are feeling pain, but it still seems to be no match for the pull of politics down in Washington as both sides basically stand their ground, but there may be a new chance for hope. We'll get into that in just a moment.

KATE BOLDUAN, CNN ANCHOR: We will. And plus, we have the shocking story out of San Francisco for you this morning. For more than a month, the family of this woman has been searching for her, even asking the public for help. Well, she vanished while being treated at a hospital there. Now, a grim discovery. She was found dead at the hospital. How could this have happened?

MICHAELA PEREIRA, CNN ANCHOR: We've seen cars that can help us park, but how about a car that can help you find I parking space and then park in it? It will even park without you in the car so you don't have to try and squeeze out when you're in a tight spot with a giant SUV on one side and your purse on the other. One major American carmaker now showing off this new technology, we'll talk about it with Brett Larson coming up.

CUOMO: That is going to be a good one to see.

All right, first up this morning, did someone say compromise? President Obama offering to sit down and negotiate with Republicans, offering to even accept just a short-term increase to the debt limit, and all in the effort of ending the government shutdown, but Republicans seem to be hearing something else.

Let's get to senior White House correspondent Brianna Keilar live for us this morning. Brianna, tell us, why is the president's offer being received by his Republican colleagues as not what it appears to be?

BRIANNA KEILAR, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Republicans at this way, Chris, are really looking, I think, for some way out. And it's really, I will caution you, it's sort of unclear at this point that this is a breakthrough. But it may be possible that this is a short-term way to avoid a default and to end the government shutdown as politicians are really starting to feel the pressure.

(BEGIN VIDEOTAPE)

KEILAR (voice-over): Day nine, the government shutdown is getting real. For families of troops killed in combat, they will not get automatic death benefits during the shutdown, $100,000 to help cover funeral costs and travel to Dover Air Force base to witness the dignified transfer of their loved ones remains. In North Carolina, food assistance for poor women and children cut off.

UNIDENTIFIED FEMALE: Furlough Congress!

KEILAR: And 27,000 furloughed government workers have signed up for unemployment as they go without pay. Just eight days until the United States could default, President Obama phoned House Speaker John Boehner, both sides indicating the divide is as deep as ever.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: We have to stop repeating this pattern.

KEILAR: But later, President Obama appeared in the White House briefing room, opening the door to negotiations if Republicans agree to a short-term solution to re-open the government and increase the debt ceiling.

PRESIDENT OBAMA: If there's a way to solve this, it has to include re-opening the government and saying, America is not going to default. It's going to pay our bills.

KEILAR: How long might a short-term measure last, four to six weeks, one GOP source tells CNN. Republicans may agree if the president promises to negotiate, but it's far from a breakthrough. Without some sort of concession like a cut in spending, a stop gap measure may not clear the House.

REPRESENTATIVE JOHN BOEHNER (R), HOUSE SPEAKER: The long and short of it is. There will be a negotiation here. We can't raise the debt ceiling without doing something about what's driving us to borrow more money and to live beyond our means.

KEILAR: The House voted Tuesday to create a congressional committee on government spending and the debt limit as well as pay federal employees currently working without pay. But the Obama administration threatened vetoes. A stalemate still and the clock is ticking louder and louder. (END VIDEOTAPE)

KEILAR: And if the debt ceiling is breached, next Thursday as we expect the date would be, not only would the U.S.' credit rating be at stake, but come November 1st there are tens of billions of payments due, Social Security, disability, Medicare and to active duty military, Chris. You can imagine that voters would find those payments sort of going by the way side, that that may be an unforgivable offense for them.

CUOMO: True. The more people learn, the less they probably will like what's going on around them. Appreciate the reporting this morning, Brianna. We want to try and help you understand maybe by putting a face and giving a name to one example of what the shutdown is doing. Sometimes one example is too many.

The 24-year-old Cody Patterson, you're seeing him there. An Army ranger from Oregon, one of four U.S. soldiers killed Sunday in Afghanistan by an IED. His body, along with three others expected to arrive back in the U.S. today at the Dover Air Force Base.

The families will have to pay for their own way to be there for the arrival. They will have to pay for all funeral arrangements on their own. Why? They have been denied the death benefits they're entitled to because of the government shutdown. One example but sometimes one is too many.

BOLDUAN: That's unacceptable. That's the only way to say that.

The effects of the shutdown, we're not even seeing the face of the shutdown, but we're also seeing the impact of the shutdown on our financial markets, already starting to hit financial markets. Stocks have fallen four of the last five days, the threat of default now threatening your investments.

Small businesses are some of the first to feel the pinch of the shutdown. Now big businesses are speaking up, urging Congress to simply get it together. Christine Romans is here with more on this. Will their voice be loud enough to make a change?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, they're certainly speaking very loudly and meeting with Republican leaders, trying to get this message across. They lived through the financial crisis of 2008 and they do not want to see markets in disarray. They do not want to see consumers panicking. They know the tell-tale signs of what could become another great recession.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): Stock markets are tumbling as the debt ceiling deadline looms and the government remains partially shutdown. You may start feeling the repercussions. Lawmakers are talking to the country, but that isn't helping ease Wall Street's concerns.

PRESIDENT OBAMA: The greatest nation on earth shouldn't have to get permission from a few irresponsible members of Congress every couple of months just to keep the government open or prevent an economic catastrophe.

ROMANS: As the president spoke, the selling continued. The Dow dropping 159 points or 1 percent by Tuesday's close.

BOEHNER: We can't raise the debt ceiling without doing something about what's driving us to borrow more money and to live beyond our means.

ROMANS: Since the shutdown began, the Dow is down 2.3 percent and with no solution in sight, America's top CEOs are getting fed up.

LLOYD BLANKFEIN, CHAIRMAN AND CEO, GOLDMAN SACHS: We have the most important economy in the world, the reserve currency of the world. Payments have to go out to people. If money doesn't flow in, money doesn't flow out.

MUHTAR KENT, CHAIRMAN AND CEO, COCA-COLA: The way forward is not easy. It requires a lot of sacrifice. It requires a lot of flexibility. It requires a lot of compromise. We expect the same will happen with the political architecture.

ROMANS: Starbucks CEO Howard Schultz has written an open letter asking for an end to the gridlock saying, he's disappointed by the level of irresponsibility and dysfunction with our elected political leadership. The debt ceiling debate is the biggest threat to your investment like your 401(k), your mutual funds, and your portfolio.

WARREN BUFFETT, CHAIRMAN AND CEO, BERKSHIRE HATHAWAY: The debt ceiling doesn't make any sense. So it ought to be banned as a weapon. It should be like nuclear bombs, I mean, basically too horrible to use.

ROMANS: The result of the government's inaction could be catastrophic. While the world waits for a solution, your money hangs in the balance.

(END VIDEOTAPE)

ROMANS: So Warren Buffett, the bank CEOs, big business leaders, the fed, chief economists, there are so much consensus here, specifically on the debt ceiling and raising the debt ceiling is a rare thing. You know, it tells us they really fear what Congress is brewing here.

BOLDUAN: Yes. No one knows how it's going to end quite yet.

ROMANS: You're right.

BOLDUAN: So on a different topic, very important, we learned last night that President Obama will be nominating, expected to nominate Janet Yellen, maybe the worst kept secret in Washington at this point. This will be the first woman to hold this role. What do you expect from her on the job?

ROMANS: You know, she's an esteemed economist, incredibly well respected. She's the number two at the fed. She went -- and went to the lunchroom with everyone else to eat, which was a surprise. She wants to be right there with the economists and the other people who are working there. She's likely to continue the policies of Ben Bernanke. That's why so many economists wanted to see her appointed to this position.

She needs to be confirmed by the Senate. But this is a choice that really, really soothed a lot of fears from people who didn't want to see a big change. One interesting thing about her, too, she was one of the very first to notice the bubble in the housing market and warning about the housing market bubble. She's esteemed and she's (inaudible) on that for sure.

BOLDUAN: All right, we'll see. Thanks, Christine.

ROMANS: You're welcome.

CUOMO: Lousy time to come into power.

BOLDUAN: I know, right.

CUOMO: If you're a real leader, then she may relish the opportunity.

BOLDUAN: She would start, what, February 1st.

ROMANS: She'd have to be confirmed. How do you get confirmation with the shutdown and the debt ceiling? I can't think about it.

BOLDUAN: Let's deal with what's in front of us.

ROMANS: Right, exactly.

CUOMO: All right, a lot of stories to tell you about this morning so let's get right to Mich.

PEREIRA: Yes. And one thing in front of the president is the situation in Egypt, making news the United States is preparing to cut some of its military aid to Egypt. The decision comes months after President Mohamed Morsi was ousted from office by the military. Months of turmoil have followed.

CNN's Ian Lee is live in Cairo with more -- Ian.

IAN LEE, CNN CORRESPONDENT: Well, there's really no official word coming from the White House yet, Michaela. Any cuts to the $1.2 billion the United States gives the military in Egypt will strain already a delicate relationship between Cairo and Washington. Now, the aid that's applied to the Egypt-Israeli peace agreement, also A, for counterterrorism is safe, this really is to send a message to the Egyptian government that the United States is unhappy about the pace of the transition to democratically elected government as well as the violence we've seen here. Recently over 50 people were killed in clashes between security forces and protesters -- Michaela.

PEREIRA: Continuing instability there. Ian Lee reporting in Cairo. Thank you.

A second team of chemical weapons inspectors will be headed to Syria to assist in the process of dismantling and destroying the Assad regime chemical stockpile. It's not known how many extra will be deployed or when. A new U.N. resolution calls for the country's chemical arsenal to be eliminated by November 1st.

The body found in a little used stairwell at San Francisco General Hospital appears to be that of 57-year-old missing patient, Lynn Spalding. That is what a law enforcement source is saying after an initial investigation. Spalding went missing from the hospital on September 21st. Friends say she may have become disoriented because of the medication she was taking for an infection.

Just in to CNN, the Nobel Prize in Chemistry has been awarded to three molecular scientists, Martin Karplus of Harvard and Strasbourg University, Michael Levitt of Stanford and Arieh Warshel of the University of Southern California take home the prize for their work developing computer simulations to predict chemical processes.

Diana Nyad back in the water, here's a live look. She is swimming today in a two-day marathon, raising money for victims of Hurricane Sandy. The venue is a 40-yard pool set up right outside Macy's in midtown Manhattan. As of last night she had already raised over $50,000. She's going to be joined by some friends, workout guru, Richard Simmons. I wonder if he'll wear the shorts. The 2008 Olympic gymnast champion, Nadia Liukin scheduled to swim with her today as well. We should drop by.

CUOMO: Big fan of Nyad. Remember the people questioned her swim there. Remember what they came up with, you know, the proof that they had to question this great feat, nothing and that's why we have to put her arms around her and thanks for what she is doing right now.

All right, let's get over to Indra Petersons and get a check of the latest forecast. Good morning, Indra.

INDRA PETERSONS, AMS METEOROLOGIST: Good morning. It is cold. Anyone feeling it out there this morning?

CUOMO: Diana Nyad.

PETERSONS: Yes, exactly. We're talking about frost and freeze mornings out there. A lot of temperatures overnight, especially in upstate New York, around Vermont, fell to the 20s and 30s, definitely feeling the chill. You can actually see Philly is a little bit better, about 57, Atlantic City about 60, but really the more north you go, look at Mount Pillier now below freezing at 30s.

Of course, we start off the day cool, we're going to end the day on the cool side as well, definitely seeing temperatures today drop below average for fall and tomorrow, we're going to be cooling off even a little bit further. Some low 60s across the area, the chill is here in the northeast. That's not the only thing. We'll be adding wind to that as well.

It's not bad enough, right? So definitely maybe 15 to 20 mile per hour winds, nothing too strong, but you are going to feel it all up and down the entire eastern seaboard especially today into the Carolinas, worried about beach erosion. Thanks not only to the wind but that low producing more rain, yesterday.

Today is another day of that. As this slow takes its time making its way up the eastern seaboard, say look about 2 inches to 4 inches in the Carolinas and as you go up towards the mid-Atlantic, you'll start to see about 1 inch to 2 inches of rain over the next several days.

There you go. Kind of see the timing of that low by the end of the week, making its way all the way into the northeast. Big question, where is it warm? Middle of the country and another storm in the Pacific Northwest as well, but so cold, windy, chilly, it's not good enough rain by the end of week, all for you, guys.

BOLDUAN: Thank you, Indra.

Coming up next on NEW DAY, a surprise school bus strike in Boston left 30,000 kids stranded. Well, now it may be coming to an end. Some good news for parents? Well, parents and students may not be completely in the clear this morning. Details in a live report, next.

CUOMO: And the latest salmonella outbreak, it turns out more dangerous than first thought, sickening hundreds of people in 18 states. We'll tell you what makes this strain special.

(COMMERCIAL BREAK)

CUOMO: Welcome back to NEW DAY.

A surprise strike by Boston school bus drivers left 30,000 kids stranded. Parents waking up this morning not knowing if they'd be back on the road. But we've learned new developments just moments ago.

CNN's Pamela Brown following this live in Boston.

Pamela, what do we know?

PAMELA BROWN, CNN CORRESPONDENT: Well, Chris, we just learned from the mayor's office that normal bus service has resumed this morning. We've learned that robocalls apparently went out half an hour ago to tens of thousands of families telling them that buses are back on the road this morning.

But still these families had to scramble to find a contingency plan. They were told yesterday afternoon that there could be a second day of strikes from these bus drivers. While this is an encouraging sign that buses are back on the road, Boston Public Schools just tweeted out that some bus drivers are signaling that they may not want to work this afternoon.

(BEGIN VIDEOTAPE)

BROWN (voice-over): Instead of driving their morning route, 600 bus drivers for the Boston Public School District shouted their grievances -- on strike they say because their company treats them badly.

UNIDENTIFIED MALE: The keys are in their hands. If they honor this contract, we will be driving tomorrow.

BROWN: They're unannounced walkout, leaving 33,000 students without their normal ride to school, enraging parents who didn't have time to prepare.

UNIDENTIFIED FEMALE: I'm late for work and then I have to leave early to make sure he gets a ride home.

BROWN: Some students even hitching a ride with Boston police who were out in force to help those stranded.

Because of the unauthorized work stoppage, only 82 percent of the student body attended school on Tuesday. Those students won't be penalized for their absence.

UNIDENTIFIED FEMALE: See you later, baby.

Great hassle. And we're late, almost late getting here because of the traffic.

BROWN: At the heart of the dispute, a Boston Public School spokesperson says drivers are frustrated with procedures put in place by the bus company Veolia and they're opposed to a GPS app that allows parents to track their children's buses.

UNIDENTIFIED MALE: I'm asking you to go back to work --

(END VIDEOTAPE)

BROWN: So, this is still a developing situation. We don't know exactly why bus drivers have decided to go back this morning but we do know that their union, United Steelworkers, says it does not condone the current actions, speaking of the strike yesterday morning, or any violation of the collective bargaining agreement.

Also, we know that bus drivers union has been in touch with Boston Public School System, the company, the vendor that runs them, trying to work out a resolution here. But, again, Boston Public School System tweeting out this morning that this dispute may not be over and that some bus drivers signaling that they may not be coming back to work this afternoon.

So, of course, we will keep you posted and keep a close eye on the situation.

BOLDUAN: All right. Pamela, thanks so much. Sounds like it could be changing throughout the morning. So, we'll check back in. Thank you.

BROWN: Yes.

BOLDUAN: Let's go now to the major salmonella outbreak affecting hundreds. The CDC is calling back furloughed experts to help with it.

And this morning, there's new information about what makes this outbreak more dangerous than others.

Senior medical correspondent Elizabeth Cohen is live at the CNN Center with more.

Good morning, Elizabeth.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Kate, these salmonella cases, they are mostly on the West Coast. They started back in March and they involve strains that are particularly dangerous.

(BEGIN VIDEOTAPE)

COHEN (voice-over): Salmonella is a common problem with uncooked chicken. On average, the CDC says about one out of over 250 broiler chickens has the bacteria. But this recent strain known as Salmonella Heidelberg seems to be made up of multiple antibiotic resistant strains, making it harder to treat.

PATTY LOVERA, FOOD AND WATER WATCH: It's a new thing we're able to track now is the salmonella that's making people sick, is that bug kind of response to the antibiotics you would use to treat it? It's happened more often recently.

COHEN: According to the CDC, nearly half of the patients who contracted the strain have been hospitalized which is a high percentage.

So, although no deaths have been reported from this bacteria, the strain packs a real punch and can make you very sick.

Complicating the investigation into this outbreak is the government shutdown. The CDC has furloughed many of its scientists who track food-borne pathogens, some have since been brought back in but there was a delay in the exchange of information about the outbreak.

The USDA says many of the packages could still be in consumer's freezers. If you chicken from Foster Farm, look for these numbers on the package: P-6137, P-6137A, and P-7632.

And believe it or not, you don't have to throw it away. The USDA says you just need to prepare it properly, making it sure you cook it thoroughly to an internal temperature of 165 degrees, which should be checked with the food thermometer.

(END VIDEOTAPE)

COHEN: Now, the reason why you don't have to technical throw it away, technically this isn't a recall. Now imagine that many people if they look in their freezers and find this chicken that they will want to throw it away. But again, the official recommendation is that you don't have to -- Chris, Kate.

BOLDUAN: That's the most confusing part about this whole thing, I think.

All right. Thanks so much, Elizabeth.

COHEN: Thanks. BOLDUAN: Recall or not recall? I say throw it out.

CUOMO: It's bad. It could hurt you, but there is no recall. Ah, the odd ways of government.

We're going to take a break now. Coming up on NEW DAY, New York City cops arrested one of their own. A veteran detective, he denies he took part in an attack by motorcyclist on the driver of an SUV. You remember this video.

Investigators say the videotape tells a different story. We'll show you.

BOLDUAN: And a possible slim glimmer of hope in the government shutdown? The president giving a little room for negotiation after Congress acts, after Congress acts is the key part. But will Republicans agree?

Your NEW DAY political gut check is next.

(COMMERCIAL BREAK)

PEREIRA: Welcome back to NEW DAY.

It is Wednesday, October 9th. Let's bring you up to date on the latest news.

The White House said to be opening the door to a temporary solution to the debt ceiling standoff -- a short-term spending increase. President Obama says he is willing to talk, even on Republicans' terms, as long as Congress acts first to end the government shutdown and raise the debt ceiling, even temporarily.

The United States is putting, getting set to pull some of its military aid to Egypt. This decision comes months after President Mohamed Morsy was ousted from office by the military. Months of turmoil followed.

Officials tell CNN funding to help Egypt uphold peace with Israel and counterterrorism in the Sinai are expected to continue. The U.S. gives Egypt $1 billion each year.

Eight Democratic members of the House among 200 people arrested at a Washington, D.C. immigration rally. Police moving in to make those arrests after protesters blocked a main street near the Capitol. Among those charged with crowding and obstructing, Georgia Congressman John Lewis and New York Congressman Charles Rangel.

The father of the 9-year-old boy who slipped past security and hopped aboard a flight from Minneapolis to Las Vegas is now speaking out, the father who has concealed his identity. Since they have been trying to get help for his son's problems for years. The night he disappeared, he apparently took out the thrash and never returned.

In the meantime, surveillance video showing the boy sneaking past a distracted Delta agent to board the plane. We'll hear from the young boy's father in our next hour.

Controversy swirling around the new Tom Hanks movie, "Captain Phillips". It's about the 2000 takeover of the Maersk Alabama by Somali pirates.

The real-life captain of that ship, Richard Phillips, will be a witness in a lawsuit filed by the crew against the ship's owner. They claim the film was flawed and that Phillips was no hero, insisting that he ignored warnings to steer further out to sea to avoid the pirates. Hanks plays Phillips and tells CNN's Christiane Amanpour he won't second guess the captain.

(BEGIN VIDEO CLIP)

TOM HANKS, ACTOR: The primary motive was to get the guys off the ship. He would never -- he would never use the word hero in regards to himself. I was waiting for the heroes to show up.

(END VIDEO CLIP)

PEREIRA: The film "Captain Phillips" opens in theaters on Friday.

I want to see the film. Controversy or not, but I want to see it.

CUOMO: Of course you do, Tom Hanks.

PEREIRA: That story captivated -- well, and the story captivated the headlines for a long time. So, I really want to see that.

CUOMO: It's a big deal. Pirates.

BOLDUAN: And controversy gets people to go see that movie.

PEREIRA: Sure does.

BOLDUAN: All right.

Let's move to our political gut check.

A press conference packed with words like "negotiate", "compromise" -- President Obama said he's willing to work with Republicans but, of course, he is still calling for a clean end to the government shutdown, and also raising the nation's borrowing limit. House Speaker John Boehner's response, that is not how the government works, especially divided government.

CNN's national correspondent John King is here to break it down for us.

Good morning, John.

So, we have these dueling media appearances -- they seem to continue. But it really with the clash of word yesterday between the president and John Boehner, we've got talk of this olive branch, an opening for a short-term extension of the debt ceiling in order to allow for more negotiations to happen. How big of an opening is this, though?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: It's a tough one, Kate, because the House Republicans don't want to vote once. So, if you do a short-term extension, essentially, it's part of any deal they would be voting twice to raise the debt ceiling. So, it is a possibility, the administration opening the door saying, let's avoid a crisis, let's extend the debt ceiling for a matter of days or a couple of weeks so that we can continue conversations, as the White House would call them negotiations -- as the Republicans would call them on other issues.

But again, most of the conservatives who are dug in on this issue, they don't want to vote to raise the debt ceiling at all. So, trying to cobble the votes together are for two different proposals would be difficult.