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U.S. Government Shutdown Continues; Congress in Talks with White House Regarding Government Shutdown and Debt Ceiling Increase; Truckers Stage Beltway Protest; Starbucks CEO Howard Schultz Weighs in on Government Shutdown

Aired October 11, 2013 - 07:00   ET

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


CHRIS CUOMO, CNN ANCHOR: I know this should happen all the time but it hasn't, so it's progress. While there's no deal officially on the table, a short-term fix at least to the debt limit crisis could get done as soon as today. Brianna Keilar on the case at the White House this morning. Good morning, Brianna.

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Chris, good morning to you. That's exactly it, progress on the debt ceiling. But whether the government will reopen, that is still murky this morning as talks continue at the staff level.

(BEGIN VIDEOTAPE)

KEILAR: An encouraging sign after House Republicans met with President Obama at the White House.

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

KEILAR: And pledged to keep the talks going.

REP. 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 MALE: Republicans are pretty clear earlier today. They want to negotiate before you reopen the government.

HARRY REID, (D-NV) SENATE 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, 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: A key moment in this meeting yesterday between the president and House Republicans, according to multiple sources who were in the room, was when, after about an hour of kind of going back and forth on how to get past this shutdown, how to get the government back up and running, Paul Ryan, the former vice presidential nominee said, implored, really, the president to deal with Republicans. He said they need to find a way to work together. He said Republicans are not going away.

And folks in the room at this point, Michaela, said that is when President Obama sort of broke a little bit and said, OK, let's take a moment, let's take a break. You guys go back to the drawing table, come up with some ideas for what it would take to re-open the government. So I think Republicans credit that moment as really thawing the president being more open to Republican ideas on the shutdown.

MICHAELA PEREIRA, CNN ANCHOR: But, still, Brianna, it's really interesting to see what some of the moments are like inside the ongoing discussions.

KEILAR: Sure.

PEREIRA: Thank you so much for that. Meanwhile, this is the big question. Let's bring in our business correspondent Christine Romans, and chief political correspondent Candy Crowley. Candy, we'll start with you. Let's talk about the fact that there are these things beginning on behind the scenes what are you hearing about some of these discussions?

CANDY CROWLEY, CNN ANCHOR: Interestingly what I'm hearing this morning from a top Republican aide and a top democratic aide is caution, saying, OK, yes, there was talk. Everybody agreed not to say bad things about each other. But there was not bargaining per se. It was tell me what you want from the president, what Brianna just talked about. And sort of saying, let's not get ahead of ourselves here. There are lots of moving parts. The speaker has to deal with his caucus over on the Senate side. Senate Republicans are putting together something that they think should open up the government which has a lot of things in it.

So there's many things going on but I'm also told, look, the debt ceiling for both sides, it should be a no brainer. Neither one of these sides wants to be responsible for whatever may happen if the debt ceiling is not increased. So they see that as certainly hopeful, that there has been movement in the sense that the tone feels better, one of them told me, that people feel as though, yes, it is going to take both sides to get this done clearly. There's that kind of realization we think they all should have had a while ago.

But nonetheless, I am getting caution particularly on the shutdown side of things. Don't pretend it's going to be a big deal today.

PEREIRA: Right, exactly. Now, caution there but then let's turn to the markets and bring in Christine Romans here. Best day in a long time, yesterday on just the idea that there was a possible deal.

CHRISTINE ROMANS, CNN ANCHOR: Right.

PEREIRA: What do you take away with that?

ROMANS: Nobody on Wall Street will give them too much credit either. There's been pushing from the business community that, look, this is a bad idea not to raise the debt ceiling. Now you've had this kick the can rally. Now they actually have to kick the can, they have to start doing something now. And that's why you're going to see some trouble ahead for your 410(k) They'll be looking at every single little bit of caution and worrying that it means we'll have a slide back.

So they've got to get this resolved for job creation, get people back to work, make sure that stocks don't tumble. And you know, another quick point I would make is there's a lot of people wondering if the GOP is still the reliable ally of business anymore. They're really talking about a traditional shift and what it means in terms of business support for Republican candidates going forward.

PEREIRA: Let's bring you back into the conversation, let's talk about this poll that shows voters are blaming Republicans in pretty stark numbers, far more than the president. I think we have that poll we can bring up -- 60 percent of voters in the same poll say they vote all of Congress out of office. Look at these numbers. I have to wonder, is this kind of damage being done to both sides? Is this reversible?

CROWLEY: Most damage done to politicians are reversible, particularly when you look at those polls, remember, in some ways it's a lot like how people look at their doctors. They say doctors, they get paid too much money, but they love their own doctor. Remember, most of these people get returned year after year after year to Congress. While as a whole people look at Washington and say, whoa, the Republicans are causing this, they're terrible. It sometimes doesn't -- it tells us overall that this is bad news for Republicans, which Speaker Boehner had said at the beginning of this, he warned his caucus, we could lose the 2014 -- in 2014 we could lose our majority over this. We'll see if that pans out.

On the other hand let's remember that Obamacare kicks in next year, if all goes as planned. If that should run afoul, that will be a huge problem for Democrats and the story line can shift. So things are recoverable. It depends on what happens between now and November.

PEREIRA: It's been like a football game, all it takes is one hit and things can change dramatically. Candy will have more on the shutdown and the debt ceiling debate this Sunday on CNN's "STATE OF THE UNION" at 9:00 a.m. and again at noon eastern, and Christine Romans, she's going to get more into the effects on the markets on "YOUR MONEY" Saturdays at 9:30 and 2:00 p.m. eastern and then Sundays at 3:00 eastern. Ladies, thank you so much.

CUOMO: Let's get right over the John Berman here with the headlines.

JOHN BERMAN, CNN ANCHOR: Breaking this morning, a Nobel Prize surprise, the Peace Prize being awarded this morning to the Organization for the Prohibition of Chemical Weapons. This is an international group that's been working to clean up chemical weapons in Syria, also all around the world. It is a terrific organization. But many people have thought the award would go to Malala Yousafzai, the Pakistani teenager shot by the Taliban for working to promote education for women.

Meantime, the OPCW says three sites linked to Syria's chemical weapons program have been visited by international inspectors. The 27-member team is scrambling to destroy stockpiles and delivery systems as the civil war there rages on. There are 20 more sites left to visit. At some point the inspectors will have to cross into rebel-held territory.

Now to that biker attack here in New York City. The first indictment handed down Thursday in connection to beating of the SUV driver. So far, seven bikers in all are charged, one set to appear in court today. The grand jury will deliberate on the rest. The district attorney is expecting indictments in each case.

The Agriculture Department is allowing three California chicken plants linked to a salmonella outbreak to remain open for business. They say the Foster Farms facilities have made immediate and substantive changes to their slaughter and processing procedures and can continue to operate. Inspectors will be monitoring the plants. They're blamed for making more than 270 people sick in 18 states.

New Jersey Governor Chris Christie will file an emergency appeal after a judge refused to delay her order allowing same-sex marriages to go forward. If the state's appeal fails, they must begin issuing marriage licenses to same-sex couples on October 21st. The judge ruled it is unconstitutional to block same-sex women now that the federal government is giving couples legal benefits.

CUOMO: The governor there is in a pinch. He has to deal with popular opinions versus what does he do with the base of the conservative party.

BERMAN: He is opposed to gay marriage.

CUOMO: Complicated situation there. Let's get to Indra Petersons, keeping track of the latest forecast for us.

INDRA PETERSONS, CNN AMS METEOROLOGIST: A rainstorm causing some problems out there. Right now we can see the current radar shows where the rain is. We're still seeing it in Pennsylvania down through Maryland. I wanted to show you since a lot of people are planning on traveling for the weekend where the delays are. Take a look at the map across the country. We see one huge delay. Just my luck, LaGuardia, 120 minutes. We are talking about a two-hour delay. What did I do that the only airport I'm going to is going to be delayed today. Of course, my fault.

Take a look, a dome of high pressure blocking the storm from making its way out. The reason they're seeing the delays around LaGuardia is not only the rain but the strong winds. They're seeing 25, 30 mile- per-hour winds. That will cause some problems. The system will be lingering. We're talking about light rain. With that, even as much as one to three inches is possible around Jersey, even in through Maryland, the rest of the mid-Atlantic, 1 to 2 edges. By Sunday we start to see the system taper off and finally kick out if you're giving a hint to be nice.

Where it is beautiful, the middle of the country, still talking about warmer temperatures, starting to see the temperatures rebound in the northeast over the weekend. I think the biggest thing to watch will be the front making its way through Texas by the end of the weekend. About two to three inches now, up to five inches around Houston today. We are not the only ones getting rained out. We are the only ones delayed.

BERMAN: You'll be phoning in from the airport all day to give us the updates.

PETERSONS: It develops moment by moment.

CUOMO: Thank you.

Let's take a quick break. Coming up on NEW DAY, truckers from around the country are descending upon the nation's capital, and they are not on a sight-seeing mission. They say they'll show D.C. what a shutdown is all about. We'll tell you what they're planning.

PEREIRA: Disturbing development, did Cleveland kidnapper Ariel Castro commit suicide or was his death actually an accident? We'll have the disturbing new claims coming up next.

(COMMERCIAL BREAK)

CUOMO: Welcome back to NEW DAY. Hope you're having a good morning. We've been telling you about the political gridlock in Washington for weeks. Now get ready for gridlock of the real kind. Thousands of truckers headed to Washington this morning with the goal of expressing their frustration at the government by literally tying up traffic. CNN's Joe Johns is in north Springfield, Virginia with the very latest. What's the plan, Joe?

JOE JOHNS, CNN CORRESPONDENT: We're standing by at this little perch overlooking the capital Beltway to see what develops. Organizers say they want to crowd the 64-mile interstate with cars and trucks over the next three days, but it's just not clear if they have the numbers to do that.

(BEGIN VIDEOTAPE)

JOHNS: Is it a big deal or a little deal?

EARNEST LEE, ORGANIZING TRUCKER: It's going to be from coast to coast the biggest traffic jam in history.

JOHNS: Today we'll find out whether Earnest General Lee's big plans to crowd the capitol Beltway and other thoroughfares with thousands of trucks in a protest against the government, lives up to the nationwide hype.

LEE: We've had enough. We want 100 million people nationwide taking part in this, and they're going to.

JOHNS: The plans call for the truckers to hit the Beltway around Washington on Friday morning rush hour, tying up three lanes of 495 circling the nation's Capitol with big rigs traveling 55 miles an hour. They say they will keep up the protest through the weekend, obeying the laws and leaving a lane for emergency vehicles.

So far, state police while beefing up their presence in the states along the Beltway have been measured in their reaction. As long as the vehicles comply with Virginia law, then the Virginia state police will not interfere with their activities.

Lee says it's just a coincidence that the so-called Trucker's Ride for the Constitution, which was planned weeks ago, happens to coincide with the partial government shutdown. But the truckers list of grievances has everything to do with the government. Starting with the president himself.

LEE: If you did a background check on me, you'd find out I did a video calling for him to resign or be impeached. So, I'm not going to try and back away from it at all. I just don't want to make this movement about it because the problem is bigger than that. It's not just President Obama. It is the corruption in the House, the Senate.

JOHNS: Organizers are also asking truckers to engage in a general strike and refuse to haul freight over the weekend to show solidarity with the movement.

(END VIDEOTAPE)

JOHNS: Right now, a lot of traffic out there, which is pretty normal for a Friday morning on the Beltway. The American Trucking Association has distanced itself from this protest. Michaela?

PEREIRA: All right, Joe. I'm sure motorists there in the area, some will be supportive but will probably be frustrated by the backup it causes.

An Ohio coroner is knocking down shocking new information about the death of Ariel Castro. The convicted Cleveland kidnapper was found dead, hanging inside his prison cell, his death had been deemed a suicide. But now, a new report suggests a very different and a surprising scenario. CNN's Pamela Brown joins us with the latest. Pam?

PAMELA BROWN, CNN CORRESPONDENT: Yeah, surprising indeed, Michaela. Officials have already determined Ariel Castro's death in early September was self-inflicted, but this new report released by the Ohio Department of Corrections is raising the possibility that Castro's death may have been an accident due to risky sexual behavior, a suggestion the coroner's office who performed Castro's autopsy denies.

(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: Auto-erotic asphyxiation is a behavior where individuals engage in self-stimulation are trying to intensify the experience they're getting 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: The probe also found two prison guards allegedly failed to routinely check on Castro at staggered 30-minute intervals like they were supposed to and even created false logs to make it look like they did, including five false entries the day Castro died. They've been place on administrative leave. And in the meantime, a statement has been released by the Ohio State Highway Patrol, the agency currently investigating Castro's death. It 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."

PEREIRA: Pamela Brown with the latest from Cleveland. Thank you very much for that.

BROWN: Thank you.

PEREIRA: Chris?

CUOMO: We'll take a break. When we come back, the CEO of Starbucks is sending a steaming hot cup of outrage to the federal government. He wants you to join him. We have the details ahead.

This is just one of those stories, I wish it never happened. A blind man brutally beaten on the streets of Philadelphia. What do bystanders do? The answer will shock you.

(COMMERCIAL BREAK)

CUOMO: Welcome back to NEW DAY. it's Friday, October 11 and it is "Money Time" as you just saw and heard. Now, Starbucks CEO Howard Schultz is diving into the shutdown mess, and he needs your help. He's asking Americans to sign petitions urging lawmakers to re-open the government and reach a budget deal. Poppy Harlow went one-on-one with Mr. Schultz. She joins us now. So, what's going on here?

POPPY HARLOW, CNN CORRESPONDENT: So, this is not unusual for him. He always sort of jumps in the fray on big issues, and this is one that he's been talking about for years.

He wants three things: the government to re-open, pay our debt, and sign a long-term budget plan by the end of the year. He says we're on a collision course with time and he's fed up.

(BEGIN VIDEOTAPE)

HARLOW: What do you think the consequences are if we don't reach a long-term debt ceiling deal? What does that mean?

HOWARD SCHULTZ, CEO, STARBUCKS: The consequences are dire. Our standing in the world, the fracturing of consumer confidence, the psyche of the American people, small and large businesses across the country will be significantly affected. No one will be immune.

And what's so perverse is, this is not something that has been invented. This is something that is self-induced. This is something that is just political. We have to bury the hatchet in terms of our political differences, have civil discourse and let people get in a room and commit to themselves that they're not going to leave the room until they solve the problem for the American people.

HARLOW: If a short-term debt ceiling deal is reached and the president signs it, does that do anything to move the needle on clarity for business, to make big moves, big investments and frankly confidence for the American public? Does that accomplish anything?

SCHULTZ: All this noise about a short-term deal, I think, for me, it's really fool's gold. It will not accomplish anything over the long term and any confidence that is -- that is provided into the American economy and to the American consumer and our standing in the world will come right back and be fractured again.

HARLOW: You said I don't pretend both parties are equally to blame. What did you mean in writing that?

SCHULTZ: I think, the way I view it, I think clearly the issues on the Republican side have created a level of dissatisfaction in which the president could not or was unwilling to meet them halfway. But, again, I'm not here to parse words about who's to blame and who's not. I think both parties need to come together today and solve this problem.

HARLOW: Back to comments you made in November 2012, right around the election you supported the president. You said, what I wanted from the president was an ability to work closely with Republicans in Congress to be able to get things done. Do you think he is doing that right now?

SCHULTZ: I think there's enough blame, Poppy, to go around on both sides. I'm not here to place blame. I'm here for a solution. I'm trying to leverage the Starbucks platform on behalf of the American people to extend their voices to Washington, to Congress, to Speaker Boehner and the President of the United States and say, listen to the people. They deserve better than this. Please solve their problems.

(END VIDEOTAPE)

CUOMO: We have to listen to what these business guys say. They know what they're saying about economics. What matters most from him is going to be his money.

HARLOW: Right.

CUOMO: That's what the politicians are going to listen to the most. Is he going to stop giving donations?

HARLOW: Oh, he already has. He pledged more than a year ago and actually called on all fellow CEOs, all Americans to stop giving any money to any politician until they get their act together, get a long- term budget deal, which we still don't have.

So, every time I interview him, literally every time, I ask, why don't you run? Are you going to run? Are you going to jump in the fray here? Again, yesterday, when we did this interview late last night, he told me I have no intention of running.

But I asked him why are you doing this right now? He said he's talked to Congress members on both sides in the past 48 hours. He talked to Valerie Jarrett at the White House, and he said it was clear to him they were in no way on track to get a long-term deal done by October 17th. And that's that scary date for the debt ceiling.

He's hoping this makes a difference. I don't know if it's going to make a difference. We're yelling at Washington right now. This is what Starbucks is saying we're going to do. Money, he's saying don't give any to Washington right now.

CUOMO: I think that might be the strongest message. Poppy Harlow, thank you.

HARLOW: You're welcome.

CUOMO: Let's head over to John Berman, get the rest of the morning's headlines.

JOHN BERMAN, CNN ANCHOR: Thanks so much, Chris.

WE were just talking about the debt deadline. Making news right now, no breakthrough exactly on the debt ceiling and the partial government shutdown. But President Obama and House Republicans do say they will keep talking. That that is progress. The president and top GOP leaders met for 90 minutes at the White House on Thursday and today, he's having Senate Republicans over.

Signs of this progress in the budget impasse have Wall Street jazzed. That is an economic term by the way. The Dow soaring more than 300 points.

Breaking this morning, the organization for the prohibition of chemical weapons has been awarded the 2013 Nobel Peace Prize. Inspectors from the group are currently in Syria attempting to dismantle the Assad regime's chemical weapons stockpiles. The Nobel Committee citing the OPCW for its extensive work over the decades to rid the world of chemical weapons.