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NEW DAY

Obamacare Back At SCOTUS; Does Cochran Owe Black Voters?; World Cup: A Tale Of Two Cities; Facebook's Controversial Mood Experiment

Aired June 30, 2014 - 07:30   ET

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


MICHAEL PEREIRA, CNN ANCHOR: Crews are battling a massive Arizona wildfire. Firefighters says the San Juan fire is only 5 percent contained. It has already burned about 5,700 acres. Evacuation orders are in effect for parts of Eastern Arizona. This comes as Arizona marks one year since the Arnell Hill fire killed 19 members of the Granite Mountain Hotshots. Sombre day of remembrance for those 19 firefighters.

KATE BOLDUAN, CNN ANCHOR: Important to remember. Every fire season you will know living out there.

PEREIRA: They run towards the danger.

BOLDUAN: While we are all running away. Thanks, Michaela.

All right, let's turn to Washington now and get to "Inside Politics" on NEW DAY with John King. A big day potentially for the Supreme Court. A lot of folks across the street watching closely -- John.

JOHN KING, CNN HOST, "INSIDE POLITICS": Kate and Michaela, good morning to you. You're dead right. A very big decision, an Obamacare decision, related decision coming from the Supreme Court on what we believed to be its final day of the session.

With me this morning to discuss that and more, Jackie Kucinich of the "Washington Post" and Peter Hamby of CNN. Hobby Lobby is the case. It's a chain of stores around the country. The owners are a Christian family.

They think that Obamacare is wrong because it forces them to provide forms of contraception that equate to abortion, like the Plan B Morning-After pill. How significant is this case for the policy of Obamacare and then in the political environment we are in.

JACKIE KUCINICH, "THE WASHINGTON POST": I think policy wise it's significant in the way that what happens down the line, this isn't the only case on this issue. There is another one is coming in the fall having to do with religious non-profits and whether they will have to cover this. So that is an aspect here. Looking forward on how this affects that and further eroding some of the Affordable Care Act, which of course is a political issue that we are going to the see coming into the 2014 elections. But I have to say you have to wonder whether Republicans are going to be wanting to talk about birth control again going into the mid-terms. KING: It's a great point because that issue has hurt them, especially with women voters. At the same time, Peter, they are trying to gin up turnout of their base and for Christian conservatives, this is a big deal, a matter of principle.

PETER HAMBY, CNN NATIONAL POLITICAL REPORTER: Yes, it is. Actually you have seen Republican candidates actually hold campaign events and public events at hobby lobby over the last couple of years. This has become a big banner issue for them, but yes, the flip side is that Democrats want to turn the base for themselves. So this is something that they could talk about as well.

KING: Works for a different -- probably different places, we look at the Congressional map, may work for the Republicans in this place and Democrats in that place. An important decision about the right of labor unions to charge fees to non-members. We'll watch that decision as well.

Let's move on to the president's big pick over the weekend. We finally find out who he will put in to be the new secretary of Veterans Affairs. You see Bob McDonald, he is the former CEO of Procter & Gamble. The significant thing here is number one, West Point grad, obviously big management experience at a giant U.S. company.

But he's a Republican. He has given money to Mitt Romney, John Boehner and Rob Portman. The speaker of the House and the Senate are from the state of Ohio. I would say smart pick for the president here. A guy with management experience and a guy who is not a partisan Democrat. A guy Republicans have to, A, confirm pretty quickly and then give him a chance.

KUCINICH: Yes, and I think not picking a general or somebody who had been career military was a good move. You heard this especially in the Senate after all the VA scandal come out. That they were looking for someone who is management before military.

HAMBY: I mean, this pick us because of the business background, because of the military background, inoculates them against, you know, any potential attacks from Republicans. We haven't see any big Republicans coming on and criticizing it and do Republicans in the Senate in confirming him really want to pick a fight over this? The veterans' issues are so important in our society. People don't want to pick a fight on and drag out. They don't want to be seen as politicizing this.

KING: Speaker Boehner in his statement said Bob McDonald is a good man. He wants to make sure the president gets in the mandate to make the changes that are necessary. It will interesting when you have a Republican in charge of that agency if he says he is part of that mandate we need more money.

Here is an interesting story, the fallout from the Mississippi Senate runoff, remember Thad Cochran, the incumbent Republican winner beats a Tea Party challenger in the runoff, why? Because of the support of African-Americans who crossed over. Most of them said they were lifelong Democrats. They crossed over.

Now the Congressional Black Caucus says, great, great. We hope to see you. We hope to hear for you. We hope for your help. Here is Emmanuel Cleaver, the congressman from Missouri, a leader in the Black Caucus. What I hope happens is that he comes to the realization that African-Americans are the reason I have the final six years. Therefore I'm going to try and be more responsible than I have been."

Voting rights is one issue. Are there other issues as well that could come up? Will it happen, Peter?

HAMBY: I don't think we should rule out Thad Cochran, you know, doing more outreach to the African-American community. He has never been really at the forefront. He works in the background. We could see him bring home smaller scale projects here and there. It's hard to see him signing on the bigger agenda, which is what I think a lot of the folks in the CBC.

KUCINICH: It was funny. At the end of that story, there were a couple of the CBC members asked would you vote for Thad Cochran. They were like no.

KING: They will campaign for the Democrat in the race. The other Republican, Chris McDaniel, has not conceded. It's possibility he will go to court here. He thinks there were some irregularities. If Thad Cochran wins this race, if he could at least start a conversation where you brought Republicans into the room with African-Americans before saying we're right, you're wrong, both sides.

If you could just sit and talk about it first it would be a helpful contribution in my view. Let's move on. The president of the United States asked by George Stephanopoulos about this whole kerfuffle about Hillary Clinton saying we were broke when we left the White House.

Hillary Clinton seeming a little bit out of touch when she talks about her wealth now and her and her husband's wealth. Listen to the president coming to the defense of his former secretary of state.

(BEGIN VIDEO CLIP)

PRESIDENT OBAMA: Hillary has been to this rodeo a bunch of times. She is in public service because she cares about the same folks that I talk to here today. As soon as you jump back into the spotlight in a more explicitly political way, you're going to be fly specked like this. Over time I don't think it will make a big difference.

(END VIDEO CLIP)

KING: Most Americans actually think Hillary Clinton gets them, understands them on these issues. I love listening to the language. Fly specked. Is he right? Is this something that, you know, she made a couple of mistakes and she tried to clean them up and it's 2014, and by the time, we get around 2016. As long as she's gets it done, she's OK.

KUCINICH: It depends if she learns how to talk about it. Until they learn how to deflect it properly because right now it seems she and her husband are throwing more gasoline on the fire.

HAMBY: He is absolutely right that the minute he said the term explicitly political. This is not a political tour. This is a book tour. She was in the six in 2012. Now she's in the 50s. But she has to figure out a way to talk about this. It's not the weight thing necessarily. It's the in the bubble thing. She hasn't driven a car since 1996.

KING: This could be one of the early test. You now have students at the University of Nevada Las Vegas saying, wait a minute, she's scheduled to speak there. She's supposed to get $225,000 to speak at a time when student tuitions are going up. So a number of students see the political opportunity, you should give some of that feedback to school, put it in a scholarship fund. If she does it for one and she's taken from UCLA in the past, every public institution that has given her money is about to say --

HAMBY: In fairness, the money came from a foundation where the money was raised privately. These speaking fees seem to be snowballing issue for her. You know, she has spoken to hedge funds. She has taken fees from a group that opposed Obamacare. This speech happening at the same time Elizabeth Warren is in Kentucky talking about student loans saying I'm just the daughter of a janitor, a message that kind of meets the populous moment.

KUCINICH: And she has a bill she's pushing that has to with tuition. So not helpful for Hillary Clinton.

KING: A little pressure on Hillary Clinton, we'll see how she reacts. Jackie, Peter, thanks for coming in. Kate, Michaela, as we get back to you. You have to get up every night to start a morning show. Here's John Oliver talking about the Supreme Court and what a nice gig they have.

(BEGIN VIDEO CLIP)

JOHN OLIVER, HOST, "LAST WEEK TONIGHT": Tomorrow is scheduled to be the last day of the Supreme Court's current term. After that, the only two cases they will be considering are pool noodle versus pool noodle and mouth versus margarita.

(END VIDEO CLIP)

BOLDUAN: I did not see that one. That is very funny.

KING: You should take the rest of the summer off too with the Supreme Court that's my vote and make the Cuomo kid work the rest when he gets back from Brazil.

BOLDUAN: We always joke even in Washington like we wished we worked on the schedule of Congress. I didn't even put that into the category. We'll add them to it.

KING: It's a lifetime gig.

BOLDUAN: Exactly right. We'll have chicken fights, Scutos versus Capitol Hill. See who wins.

KING: I'm not voting.

BOLDUAN: Thanks, John.

KING: Happy Monday.

BOLDUAN: All righty, coming up next on NEW DAY, Facebook playing with your emotions. Conducting a psychological study by tweaking hundreds of thousands of news feeds without telling customers. How are Facebook users reacting to it -- Chris.

CHRIS CUOMO, CNN ANCHOR: All right, Kate, we have something you have to see. A side of Rio you have not seen much in media portrayals in Brazil as it host the World Cup. The need is great and demands your attention. Places where people have the worst of most things, except for the view.

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CUOMO: Welcome back to NEW DAY. In Rio, there's a story that's gone largely untold. While thousands of people have come from all over the globe to bask in the glory of Rio, this is a tale of two cities. There's a different reality in addition to the beauty and the beaches. It literally surrounds you, an open secret. The communities called favelas. Life there is no party.

(BEGIN VIDEOTAPE)

CUOMO (voice-over): Brazil. The pictures show incredible beauty. The beaches, the buildings, and everywhere there's celebration as the World Cup rolls on. But staring down at all of this up in the hills there's a very different reality, the favelas. Slums home to a toxic combination of drugs, poverty and death.

Over 11 million forced into a honeycomb of house all over the country. We came to the hills outside Rio. Life is slow here. It is all tight and dark spaces. The power runs overhead in a tangle. It can be unsafe and unreliable. Same goes for sanitation and public safety. But as we climb to the top, something unexpected, the most beautiful view. British transplant, Bob Nudcarney has lived here 35 years and owns the aptly named Maze Hotel.

CUOMO (on camera): How did they get so intensely poor?

UNIDENTIFIED MALE: They were slaves. The children are slaves. Most of the adults couldn't read or write.

CUOMO (voice-over): He was here in the days of rampant drugs when the only law was that of a drug kingpin?

UNIDENTIFIED MALE: In the very, very worst cases, which are not common, I should say. You had a drugs chief that would make everybody deliver their daughter to them. And he said I get the first night. It was that bad.

CUOMO (on camera): And if they didn't do it?

UNIDENTIFIED MALE: They got shot and killed.

CUOMO: Then came pacification in 2008, an effort to clean it the favelas. Many say tactics were brutal and short-sighted. In the absence of treatment and better opportunities, Brazil is reportedly the world's biggest abuser of crack cocaine. That's why word of the estimated 14 billion poured into World Cup preparations was met with anger from the middle and lower classes here.

Desperate for a better way of life. Protest popped up around the country and a lost opportunity did not escape the eyes in the hills.

(on camera): Do you have that the government pays enough attention and helps the people who lived in the favelas?

(voice-over): No, she says. They are more interested in other issues. They don't fix anything. They just put makeup on it. Bob agrees and said the root issue is corruption.

UNIDENTIFIED MALE: They haven't got a democracy. Anybody who goes into politics --

CUOMO (on camera): That they steal?

(voice-over): Bob says the police, who were sent to make things better, often make them worse.

UNIDENTIFIED MALE: That's the really bad thing. Even the people who watch out for tourists getting robbed on the Copa Cabana Beach, they watch them get robbed, slap the robber around, and put the goods in their pockets. It's dreadful.

CUOMO: Authorities have defended pacification saying it is for the greater good, not just for the optics of the World Cup. And the government is proud to report that in recent years, 20 million Brazilians have been lifted from poverty. There's one thing uniting one thing in Brazil, football.

That's what I'm talking about. The kids welcomed a gringo, put me in goal, and then pummelled me. The World Cup has lifted spirits here, if not the standard of living.

UNIDENTIFIED MALE: I hate to tell you but sometimes the poor are happier than the rich. They may not have much but they enjoy it. The first sun rolls over the mountains and pours over the sea like fresh orange juice. After 35 years, I'm still looking at it and I still love it.

(END VIDEOTAPE)

CUOMO: I'll tell you, it's important to tell these kinds of stories. Not to be a downer but to be real. The view is amazing. It is such irony, such contrast that this beautiful view is held by those who have the least. We have problems with poverty in the U.S., but this is a unique culture people need to be aware of. BOLDUAN: An important one to tell. Absolutely. I guess the hope is and really as you pointed out in your story is the hope is with telling the story, bringing attention to the World Cup, you can lift up their spirits and bring attention to those who need it the most, rather than the glitzy glam of the games and everybody leaves and everything remains the same. That at least can be the hope I guess.

PEREIRA: One of the things that Chris knows well and knowing Brazilians. No matter what, with the littlest amount they have it's a very happy people. The people that have nothing say tomorrow will be better. Tomorrow is good. At least I have family. At least I have sunshine. At least I have a football to kick around. Beautiful spirit in those people.

CUOMO: And there's hope, that's for sure. They are trying to make something of this. What will FIFA, the soccer organization give back, if anything, what will the media and the rest of us do to help this place once the soccer balls are done being kicked around for the World Cup? And hopefully the attention is sustained.

BOLDUAN: Absolutely, Chris. Thanks so much for telling that story. We'll get back to Chris, a lot more World Cup coverage to come for sure.

First, a quick break. Coming up on NEW DAY, Facebook has developed a psychological experiment on its users. We'll tell you how the social media giant altered news feeds for hundreds of thousands of users and how it is responding from a backlash.

(COMMERCIAL BREAK)

PEREIRA: All right, welcome back to NEW DAY. Had any hints of mood swings recently after going on Facebook, there may have been a reason. The social media giant acknowledging it tampered with the news feeds of nearly 700,000 users for a week in 2012, part of an experiment to see how users react to positive or negative news on their screens.

Backlash ensued, surprisingly. Now Facebook responding to that backlash. We want to bring in our Alison Kosik, business correspondent, to talk about this. They say they were looking at the concept of emotional contagion.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Right. Which I think is fascinating. They were trying to see is if they could kind of gauge what your emotion is depending on what the content is, so they put up a lot of positive things on your news feed, and that they noticed created positive postings from other people, same went for negative. They were able to go ahead and skew the way you were thinking or manipulate the way you were thinking.

BOLDUAN: That's scary. Manipulation is the word right there. It really gives you pause and scares me when you think they were just doing an experiment to manipulate how people were feeling and how they then reacted on Facebook, how are people reacting?

KOSIK: It is creepy. What better place to find out how people were acting than it go on social media. One woman posted, I wonder if Facebook killed anyone with their emotional manipulation stunt at their scale and with depressed people out there, it's possible. And Father Edward Beck on Facebook saying, if you're the sort of person who has wild mood swings, I'm not sure why you're on the internet in the first place. To a lot of these people, it is not such a huge shocker, my gosh, Facebook is doing this. You're seeing the anger because nobody was told they were being part of this experiment.

PEREIRA: Facebook is saying, look, right there on our terms of service, it says we can do research on you.

KOSIK: Exactly, 9,000 words, the justification is this terms of service, and in the terms of service is this little sentence that says, yes, we can use your information for research. There aren't any legal implications for this. Ethical, that's another story. Because it does kind of ooze of, like, we're the guinea pigs or the lab rats. This is kind of creepy. We go on Facebook, it is a personal experience, and here we feel like, yes, somebody is watching us. It is the -- it is Facebook. Not going on. This was just for one week, two years ago. One week in January, this research went on.

BOLDUAN: Now the report just came out.

KOSIK: Yes. It was posted -- put in a scientific journal and everybody is in shock.

BOLDUAN: I think we have yet to establish what the beneficial goal is in manipulating our mood.

KOSIK: I think they're wondering it as well.

BOLDUAN: Maybe we should have wondered before we conducted the experiment on people. Alison, thank you so much. When I see you, I have happy thoughts.

We're going to take a break. Coming up next on NEW DAY, a United Airlines flight make an emergency landing. When an evacuation slide deploys mid-flight, the terrified passengers and now the investigation into how this could have happened thousands of feet up.

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