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Obama, House Republicans Talking; Market Rally On Hopes For Deal; Nobel Prize Goes To OPCW; CIA Warning About Snowden In 2008; University of Delaware Bus Crash; Shocking Ariel Castro Death Report; Obamacare Web Problems; White House: "Good Meeting"

Aired October 11, 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: All right. TGIF. I am. What a great morning this is. Welcome to NEW DAY. It's Friday, October 11th, six o'clock in the east. Kate is off today, but the rest of the family is here. So, we are ready to go.

And I must say, looks like we have progress. House Republicans met with President Obama. We have new information on just how much pressure Republicans are under to make a deal. Take a look at this. Brand new poll, only 24 percent of Americans now have a favorable view of the Republican Party. Now, statistically, that's about as low as a pole will get. But, Democrats are not in great shape either. We'll tell you much more, coming up.

MICHAELA PEREIRA, CNN ANCHOR: Meanwhile, Obamacare exchanges, the health care exchanges now in day 11. The system really has not gotten much better. We're going to investigate this morning exactly what went wrong and how much money was spent on the system that really hasn't worked all that well. What are the problems that are causing all this?

CUOMO: Take a look at that. Up first, though, good meeting. The White House powwow between the Republicans and President Obama may have produced the first real signs of progress toward ending the budget impasse averting a government default. But, both sides admit there's still long way to go.

Senior White House correspondent, Brianna Keilar, following developments for us. Brianna, is there a sense that the parties had to say there was progress coming out of this or truly green chutes of hope?

BRIANNA KEILAR, CNN SENIOR WHITE HOUSE CORRESPONDENT: No, there -- I think there's a -- there's actually both, Chris. That's what I think the truth is. There is progress. And, we actually heard from sources in this meeting yesterday between House Republicans and President Obama that House speaker, John Boehner, made that point, that they needed to come out with some sign of progress or else certainly the markets were going to be upset.

But what we have now is some progress on the debt ceiling. Will the government re-open? That is still murky as talks continue today.

(BEGIN VIDEOTAPE) KEILAR (voice-over): An encouraging sign after House Republicans met with President Obama at the White House.

REPRESENTATIVE JEB HENSARLING (R), TEXAS: I would characterize this as probably the most constructive.

KEILAR: And pledged to keep the talks going.

REPRESENTATIVE ERIC CANTOR (R), VIRGINIA: We'll have more discussions. We'll come back to have more discussions.

KEILAR: On the table, a compromise that would increase the debt ceiling for six weeks. The White House said the president looks forward to making continued progress with members on both sides of the aisle. But the government shutdown is still up in the air. President Obama and congressional Democrats insist the government re-open as part of a deal. Republicans want concessions from the president to make that happen.

UNIDENTIFIED REPORTER: Republicans were pretty clear earlier today. They want to negotiate for you to reopen the government. Is that --

SENATOR HARRY REID (D), MAJORITY LEADER: Not going to happen.

KEILAR: Even as they were meeting, more signs the Republican strategy is hurting them in the public's eye. In a new NBC/"Wall Street Journal" poll, 53 percent of Americans now blame Republicans for the shutdown, 31 percent blaming the president, only 24 percent have a favorable opinion of Republicans, 21 percent have a favorable view of the Tea Party, both numbers at an all-time low.

And governors in states where national park closures are hurting tourism are starting to get fed up.

UNIDENTIFIED MALE: Come on down to Southern Utah. The parks are open --

KEILAR: Utah brokered a deal with the Department of the Interior to fully fund park service personnel and re-open its parks. Colorado, Arizona and South Dakota may follow suit. On "Wall Street Journal," the Dow soared to its biggest one-day gain for the year. Hungry for good news just one week before the U.S. is set to hit the debt ceiling. A six-week debt ceiling deal would take us to November 22nd, just as holiday shopping season gets under way.

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: The president said the other day if they were to send them a clean debt ceiling extension, no partisan strings attached, he would sign it.

(END VIDEOTAPE)

KEILAR: Now a fascinating glimpse into that room where President Obama met with House Republicans. It was a key moment multiple sources inside the room tell us between President Obama and Paul Ryan, the former vice presidential candidate. After about an hour of going back and forth, really making no progress on how to re-open the government, Paul Ryan sort of stepped up and told President Obama that he needs to deal with Republicans and find a way to work together, that Republicans are not going away.

Multiple sources say at that point President Obama said, you know what, it's time to break, how about you go back, figure out a way to re-open the government, what conditions you need. So obviously not agreeing to conditions, Michaela, on how to re-open the government but the president stressing he's open to some ideas. He wants them to keep talking and come back to him.

MICHAELA PEREIRA, CNN ANCHOR: A key pivotal moment there, Brianna. Thank you so much for that. Interesting to see what changed the tide. Just a hint of a debt limit deal sent the markets soaring on Thursday, closing more than 300 points up. But even if the two parties get a short term fix done, this crisis is sure to raise its ugly head once again and conveniently or not just in time for the holidays.

Here to tell us what that might mean for our money and the markets, Christine Romans. I mean, this is a real concern, you think this is bad, once again and then right before the holiday.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I'm calling this the kick the can stock market rally. Now someone actually has to kick the can before you are going to really see real confidence take hold again in the economy and the stock market. I mean, you look at yesterday, Congress has so much room to screw up your retirement here and that's why they're so concerned this morning that they haven't actually finished it.

Stocks are up double digits this year, right. If they can do a deal and have a good deal and spend some time talking about deficit reduction and getting budgetary restraint in, that would be good for your money. It would be good for job creation and good for your stock market.

PEREIRA: So the question is, people are sitting at home, my 401(k), my investments, what do I do? Some folks are probably panicking in light of the fact that there this looming, you know, struggle over the debt ceiling, is there anything they can do now in advance.

ROMANS: A lot of people got nervous last week and started to sell. Look what happened? They sold and the stock market went up. You have to have a longer term strategy. A lot of the people I trust say, just take a break here. Take a break and make sure you have the right mix of stocks, bonds and cash.

Remember, that there's a lot of room here for them to really mess it up. It's a kick the can rally, now they have to kick the can and actually solve these problems that led to this in the first place. The thing I'm worried about is confidence, consumer confidence heading into the holidays.

PEREIRA: We know how that affects everything.

ROMANS: That's what I'm worried about. Washington really needs to step it up, worry about jobs, worry about debt and deficits, and start to be real leaders. That will be good for everyone's money.

PEREIRA: We'll try and walk people through this as this goes on. Christine Romans, thank you very much. We appreciate it.

CHRIS CUOMO, CNN ANCHOR: All right, we have breaking news this morning. Surprise over the winner of this year's Nobel Peace Prize, it goes to the Organization for The Prohibition of Chemical Weapons, which is working to destroy Syria's stockpile. But it did not go to Pakistani teenager, Malala Yousafzai. That was a surprise.

CNN's Fredrick Pleitgen is live in Berlin. Fred, how big a surprise is this?

FREDRICK PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: It's a gigantic surprise, Chris. I mean, there were people around who were absolutely sure that Malala was going to get it, especially after all the media attention that she's been getting the past couple of days.

Nevertheless, most people say that the Organization for the Prohibition of Chemical Weapons, the OPCW, is a very worthy winner because of also the fact they've been doing so much work in Syria recently where they, of course, spearheaded that investigation into the chemical weapons use that happened in late August.

But the Nobel Committee said that the reason why they got the prize this year was specifically not for the work in Syria this year, but for trying to get rid of chemical weapons in the world over the past couple of decades. Of course, it's helping both the U.S. and Russia get rid of their chemical weapons.

It also helped Libya to get rid of its chemical weapons when Moammar Gadhafi was still there power, but even if the Nobel Committee doesn't say so, of course, Syria also plays a very big role in all of this.

Chris, I want to tell you, the Nobel Committee is still trying to reach the OPCW. Apparently, they can't get through to them, to tell them that they won the award.

CUOMO: Two days in a row. People are busy doing the work that won them the award. Thank you very much for the reporting. Appreciate it this morning.

Now we're going to talk more about the Nobel winner with chief international correspondent Christiane Amanpour later this hour. Stick with us for that. A lot of news and for that we go to Mr. John Berman.

JOHN BERMAN, ANCHOR, CNN'S "EARLY START": When you have caller I.D. and it says Nobel Prize Committee, you pick up. That's my advice I'm just saying.

All right, now the news this morning. Years before he leaked thousands of classified documents, a warning about NSA leaker Edward Snowden apparently slipped through the cracks. In 2009 when he worked at the CIA in Geneva, a supervisor wrote that he suspected that Snowden was trying to break into classified computer files. That report was in Snowden's personnel file, but it apparently went unnoticed.

The first indictment Thursday in that New York road clash between a bikers and an SUV driver, officials have not released the charges against 35-year-old Robert Sims. He's just one of seven men arrested in the case including an off-duty detective. Meantime, another biker is expected in court this morning.

A chartered bus carrying dozens of sorority members from the University of Delaware collided with a truck Thursday night. The "News Journal" reports the students are members of phi-sigma-sigma and were on their way to a homecoming party when the accident happened. Thirty seven people in all were taken to a local hospital. None of the injuries is believed to be life-threatening.

The biological father of a Cherokee girl once known as Baby Veronica dropping his fight for custody rights. Dustin Brown and the Cherokee Nation saying all proceedings regarding Veronica within the Oklahoma and Cherokee court systems have been dropped. In return they have asked Veronica's adoptive parents, Matt and Melanie Copobianco to drop a complaint against Brown of custodial interference. Obviously what we're hoping there is both sets of parents can reach some kind of agreement for the benefit of this young girl.

CUOMO: Sad but also, this is a good sign of what may be to come. They're getting the legalities behind them, focusing on the kid. Hopefully they find a way to put love around the child.

PEREIRA: John Berman, great to have you with us.

BERMAN: It's nice to be here.

PEREIRA: We're evening it out here, Indra, you and I against the boys, football during the commercial break.

CUOMO: I'll take it.

INDRA PETERSONS, AMS METEOROLOGIST: There will be no football for me.

PEREIRA: Yesterday, the system that we were watching, has it become more enemy or friend to us?

PETERSONS: It's your new best friend for a reason.

CUOMO: That's an it.

PETERSONS: We're going to be politically correct here is still here. OK? We're talking about rain pretty much anywhere from Pennsylvania, kind of now moving out of Virginia. Not necessarily heavy rain at any point in time, but it's band after band as the low continues to hug the coastline. Temperature wise you are going to start to see temperatures rebound a little bit. At least the overnight feels better.

Remember a few days ago we had frost and freeze warnings so temperatures are in the 30s. To the upside, more clouds and more 50s in the morning hours so more comfortable as you're waking up. The reason it's hanging on, we had this dome of high pressure. We weather geeks actually call it blocking high, this low was trying to get out of here but it can't. This guy will not let it move.

This needs to weaken. That dome of high pressure has to weaken in order for the storm to go away. We will see that start to happen on Sunday. So each day we will see the rain kind of taper off a little bit more. As far as amounts, still we're talking about maybe 1 inch to 2 inches primarily in the mid-Atlantic.

Hot spots look to be around Jersey and pretty much right around Maryland. There you can see as much as 3 inches, but again, over three days so not necessarily heavy. Temperature wise, you'll see the temperatures rebound into maybe the Mid-Atlantic and kind of cool off there into New England over the next several days. A little bit of variance, but otherwise, generally mild where temperatures are still above normal, that's the middle of the country, well above normal there.

Cool air still right next to it. We have a system exiting out of the Rockies. Remember the blizzard in South Dakota, plenty of snow out there. They're talking about a threat for severe weather, the potential for all of that snow to melt under heavy thunderstorms. It could be a flooding concern for them.

PEREIRA: We'll keep watching it. Indra, thanks so much.

CUOMO: We're going to take a break here on NEW DAY. When we come back, was it really a suicide? Wait until you hear what's in a new report about the final hours of Cleveland kidnaper Ariel Castro.

PEREIRA: Bizarre circumstances coming out of that report. Also the Obamacare website still has glitches. Were warnings ignored before the big debut? We'll discuss that, coming up.

(COMMERCIAL BREAK)

PEREIRA: Welcome back to NEW DAY. An Ohio coroner is disputing a surprising suggestion made in a new report about the death of Cleveland kidnapper, Ariel Castro. The convicted abductor was found dead hanging inside his prison cell last month. This new report reveals the possibility that his death may have been an accident. Looking more at this for us this morning is CNN's Pamela Brown. This is an interesting twist of events.

PAMELA BROWN, CNN CORRESPONDENT: It certainly is. You know, many of us were surprised, Michaela, to learn in early September that Cleveland kidnaper, Ariel Castro, was found hanged in his prison cell and now we are learning from a recent report from the Ohio Department of Corrections, the possibility that his death may have been an accident due to risky sexual behavior. But the coroner's office is maintaining this morning he committed suicide.

(BEGIN VIDEOTAPE)

BROWN (voice-over): New questions have emerged in the hanging death of Ariel Castro. The coroner says the cause of death is suicide. But a brand new report from the Ohio Department of Corrections considers the possibility of a drastically different cause, auto-erotic asphyxiation. The report says when Castro was found his pants and underwear were pulled down to his ankles.

DR. DREW PINSKY, HLN HOST: It's a behavior when they engage in self- stimulation or intensify the experience by putting something around their neck, to literally cut off the blood supply to their brain, causing more of a euphoria.

BROWN: But this morning, the coroner released a strongly worded statement, saying, "I don't think anyone else should have an opinion on what the cause of death was. As a death investigator, it is my job to determine cause and manner of death. Looking at this report has not changed my mind. The cause is hanging, the manner is suicide."

During his month in state prison, officials say Castro was given more than one mental health evaluation and indicated no current suicidal thoughts or past attempts to hurt himself. As a result, he was not placed on suicide watch.

At a sentencing, Castro admitted to a sexual addiction, saying it was partly why he kidnapped Amanda Berry, Gina DeJesus and Michele Knight and held them captive for a decade.

ARIEL CASTRO , CONVICT: I believe I am addicted to porn, to the point where it really makes me impulsive and I just don't realize that what I'm doing is wrong.

(END VIDEOTAPE)

BROWN: And the probe also found two prison guards allegedly failed to routinely check on Castrol, with staggered (INAUDIBLE) intervals like they were supposed to and even created false logs to make it look like they did, only five false entries the day Castro died. They have been placed on administrative.

And in a statement meantime, Ohio State Highway Patrol, the agency currently investigating Castro's death says, "We are aware of the information regarding the clothing and the way inmate Castro was found. We continue to investigate this case as we have from the beginning, as a suicide."

Key point there, they made a point of saying suicide.

PEREIRA: Right. At the end of the day, the women need to carry on with their lives and move on and heal and leave this all behind them.

Pamela Brown, thank you so much for that.

BROWN: Thank you.

PEREIRA: Chris?

CUOMO: All right. As you probably heard, online problems are marring the rollout of Obamacare. But now, the glitches are stretching into day 11, some experts warn the goal of signing up millions before coverage begins could be in real jeopardy. What happens then?

CNN's Brian Todd reports.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): Since virtually the moment it came online, the Obamacare signup Web site has been beset with glitches, people not being able to logon, getting booted off.

We pressed the administration's point man on all this, David Simas.

DAVID SIMAS, WHITE HOUSE DEPUTY SENIOR COMMUNICATIONS ADVISER: So, folks are working 24/7 to address to isolate and to fix problems. People are going through and others aren't. It's not acceptable, which is why they are working across the clock both with hardware and with software.

TODD (on camera): But many argue you had many months to get this booted up and to really perfect it. Why, then, still so many problems?

SIMAS: So, we went through a testing period, and during the testing period, you identify problems, created a punch list, fix those things. The president said from the beginning, with a site like this, of course, there were going to be glitches, but let's understand why there was the initial problem.

We had 250,000 concurrent users at one time. I mean, just for perspective, Medicare.gov in a given month has 5 million unique visitors. This in first three days had 8.6 million unique visitors, which speaks to the demand.

TODD: How much did it cost to pay the contractor to set up this Web site?

SIMAS: So, I will refer you back to CMS and HHS for those numbers.

TODD: Was it over $100 million?

SIMAS: Brian, I will just refer you to them for the numbers.

TODD: OK.

(voice-over): We haven't been able to get hard numbers from those agencies, but according to a Government Accountability Report issued over the summer, they paid nearly $90 million through March of this year. They have obviously paid more since then.

Then, there's the potential cyber-security threat.

House Intelligence Committee Chairman Mike Rogers says, with all the personal information like your Social Security number, tax information and other you will have to put into this health care database.

(on camera): It's a magnet for hackers, he says. What about the cyber-security? SIMAS: Built to the highest security standards. That's what this Web site was built upon.

TODD (voice-over): Simas says, to all those frustrated by the Web site and are about to give up, keep on going back, call a help center and understand there's a six-month period to sign up.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PEREIRA: They're going to have to get the glitches if they want people to come out in the numbers they are hoping them to.

CUOMO: Yes, a little bit of a red herring. I mean , It is a software issue. This is the how, the process. It's being used as a metaphor for whether Obamacare is a good law, which is a little conflating of the two things.

PEREIRA: It is. Conflating, a word we like to use on NEW DAY.

CUOMO: Mick, you told me that.

PEREIRA: I can spell it.

Next up on NEW DAY, one-on-one with the Malala Yousafzai. Christiane Amanpour sat down with this brave young woman. She'll join us this morning to talk all about their conversation.

CUOMO: Plus, trouble at the Taj Mahal. Police in India going after Miss Universe because of an unauthorized photo shoot. Details ahead.

(COMMERCIAL BREAK)

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

CUOMO: Welcome back to NEW DAY. It's Friday, October -- I want to sound like James Earl Jones.

PEREIRA: I know.

CUOMO: There's nothing wrong with trying once in a while.

PEREIRA: I know.

CUOMO: Coming up in the show, how did a young girl thwart an assassination attempt by the Taliban.

Christiane Amanpour gets inside the amazing story of Malala Yousafzai.

PEREIRA: She is a teenager and has had a remarkable life already. I cannot wait to see what lies ahead for this young woman.

Also, here's a sports question for you: how is it that Peyton Manning is making NFL history before he steps on the field for Sunday's game against the Jacksonville Jags? We'll discuss, coming up.

JOHN BERMAN, CNN ANCHOR: But, first, I want to bring you the latest headlines, I'll bring you up to date on developments overnight in Washington.

Finally, at least hint of progress. A faint whiff of progress if you will.

President Obama meeting at the White House with a group of 20 top House Republicans talking more than an hour and a half about a Republican proposal to increase the debt ceiling for six weeks. The president is said to be pressing the Republicans to end the partial government shutdown as well, as any part of the debt ceiling deal.

And the Nobel Peace Prize goes to -- not to a lot of people thought. It was awarded to the Organization for the Prohibition Of Chemical Weapons. This is a very crucial, global watchdog group, working to help destroy Syria's stockpile of poison gas.

Many thought the Pakistan teenager Malala Yousafzai was going to become this year's Nobel laureate.

A landmark court victory for Toyota. A Los Angeles jury dismissing claims that a 2006 Camry involved in the fatal accident four years ago was defected. The case was brought by the family of Noriko Uno. They were seeking $20 million, claiming the California woman was a victim of sudden, unintended acceleration. She was killed when her car slammed into a tree. Jurors ruled the car's design did not contribute to that accident.

The operator for West, Texas -- of the West, Texas, fertilizer plant the where a massive explosion killed 15 had been slapped with dozens of serious safety violations, including handling of storage of chemicals. Investigators believe this played a part in the blast that was so powerful, it registered as a small earthquake. The company is facing more than $100,000 in federal fines.

All right. Get this, classes at a Georgia school are being canceled today on account of great weather. The head master at Calvary Christian School in Columbus says he's had to cancel classes for years because of bad weather and he wanted to do a positive reason to do it before he retires this year.

So, the forecast for Columbus, Georgia today, 80 and sunny with a chance of awesome.

(LAUGHTER)

BERMAN: That's awesome. That principal. That sounds great.

PEREIRA: Excellent. A nice good act before he retires.

CUOMO: Very good.

All right. How about the time for the political gut check. Ready for this? Good. We've been talking about the president and the House Republicans negotiating a debt limit deal.

So, is there a light at the end of the tunnel and is that light the train?

CNN chief national correspondent John King is here to break it all down.

Good morning, John.

So, let's get right at the meeting. We understand that it was going just OK. Then there was a major pivot point. What happened?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: let me put it this way. At least they're in the tunnel instead of in their bunkers, Chris. What happened we're told during this White House meeting is there was what we had for a couple weeks now. People stating their positions with be not getting anywhere. We're not having a conversation.

So, Paul, the House Budget Committee chairman, and remember the Republican vice presidential nominee the last time around, turned to President Obama, said something to the effect of, look, we know you don't like our position. We know you probably don't respect our position, but we're the Republican majority, you're stuck with us for a while, at least through the next election season. So, we need to learn to have a conversation with each other.

And at that point, both Democrats and Republicans say the tone of the meeting changed and the president said, OK, I'm not going to negotiate until you re-open the government. Go back to your members, find out what you need to do to get that part done and let's try to make progress.

Importantly, Chris, they also at this meeting decided and this was the Republicans who brought this up, let's walk out of here sniping at each other. Let's walk out of here saying we're making progress for both the financial markets and I would call it the political markets, so the people start to have a bit of faith.

CUOMO: Coming out of the meeting did you have anybody saying to you, why did this take so long? Feels like we could have done this weeks ago. It doesn't seem like this dynamic was so special.

KING: I think everybody says that. It was interesting, Dana Bash interviewed Pete Sessions. For the first time we were having this conversation. That's kind pathetic, I hate to say it. But, you know, the Republicans have been on the majority now for a couple of years. And for the first time we're sitting with the president trying to build this respect.

It's months and months and months overdue, not just about this crisis. They should have been going this from the moment the Republicans got the gavel back. But, look, we're here now, let's hope they can make progress. CUOMO: How much of this move, John, do you think it's about this poll that came out of NBC that shows this gaping credibility gap between the president -- this responsibility gap between the Republicans. Tell us about it.

KING: I think there's no question. There's a huge -- the polling has a huge impact. If you look right there there's a 22-point spread for who's to blame, Republicans in Congress or President Obama. Add in the both or equal, ands 66 percent of the American people blame Republicans here.

There's another -- in that same NBC/"Wall Street Journal" poll, Chris, favorable opinion of the Republican Party and the Tea Party at all- time lows.

What does that polling do? It gives Speaker Boehner the right to turn to those Tea Party members, those conservative members who've been gumming up the works and say, ladies and gentlemen, you want to cost us the next election? It's time we find an exit strategy.

CUOMO: But in terms of impetus of the other side to work with them, there's something hidden in the poll. 60 percent of people say I would get rid of all people in Congress, including the Democrats. They need to heed the people's will as well. No?

KING: They certainly do. Especially if you're a Democratic president, you believe in government, if you're looking at this polling, people have less and less faith that this town can get anything done. As I always say, people think Washington would screw up the free lunch, more and more so.

So, the pessimism about Washington -- yes, the president has the upper hand politically when it comes to the shutdown and debt crisis. But he's also got has three plus years left of his second term. If he wants to get much done, he has to not only build a relationship with the Republicans, he has to build some faith with the American people that Washington can get at least the basic business done.

CUOMO: OK. So, let's look for progress here. What's your best information about what will be on the table when the Republicans come back?

KING: A couple of key things. Number one, the Republicans are polling their own members saying the president will talk to us about these debt issues, about these entitlement issues, but first, we have to re-open the government.