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NEW DAY

East Coast On Edge Over Arthur; Belgium Delivers Knockout Punch; Body Found May Be Missing Palestinian Teen; Crisis Escalating in the Middle East; Congress Changes Rules on Disclosing Free Trips

Aired July 2, 2014 - 06:00   ET

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


MICHAELA PEREIRA, CNN ANCHOR: A food truck explodes in Philadelphia. Nearly a dozen injured, injured two critically. What went wrong?

CHRIS CUOMO, CNN ANCHOR: Your NEW DAY starts right now.

Good morning. Welcome to NEW DAY from Brazil. We could have won, but we didn't. We could have had a draw, but we didn't. The scoreboard showed 2-1 Belgium, but what a match. We'll take you through all the highlights and the human highlight himself, Mr. Tim Howard, the U.S. goalkeeper, the man of the match. He made history last night, and he's going to talk to us on NEW DAY.

There's so much to discuss with him about what happened last night and what happens for U.S. soccer going forward, but there's big news this morning. The weather all along the east coast, it's moving, it's getting worse so let's get you back to New York and Kate for the latest on that. Good morning, my friend.

KATE BOLDUAN, CNN ANCHOR: Thanks, Chris. Good morning. That's right. Tropical Storm Arthur is what we're talking about here. It's expected to become Hurricane Arthur today. It's threatening -- tomorrow, rather. It's threatening to make for a dangerous mess as the 4th of July holiday approaches.

The first named storm of the hurricane season. Arthur is expected to affect just about every beach destination on the east coast over the next 72 hours. Right now part of North Carolina's coast is under a hurricane watch and tropical storm watches are in effect off parts of the Carolinas and Florida.

We're tracking Arthur's path, of course, for you at every turn. Let's begin with Alina Machado in Cocoa Beach, Florida -- Alina.

ALINA MACHADO, CNN CORRESPONDENT: Well, Kate, Arthur is just east of where we are right now, but we can still see and feel his reach. Not much in terms of rain right now as you can see, but it is definitely windy and take a look at the surf. It is very, very rough out there. Not good for swimmers. Surfers though will probably be heading out here today, again, trying to catch some waves.

Now just because they are out here, that doesn't mean that this is safe. There's a very real threat of very strong rib currents not just here, but along the east coast so people should be careful. This is a big beach week because of the 4th of July holiday.

We did talk to some vacationers here yesterday who are going to be keeping a very close eye on Arthur, as we all are, and they are hoping that Arthur doesn't meddle too much with their vacation plans -- Kate.

BOLDUAN: Alina, all right, you're right at the front end of that storm for us. We'll be coming back to you. Thank you so much. So where is Arthur now? Where exactly is it and where is it headed next? Meteorologist Indra Petersons is watching all of that for us -- Indra.

INDRA PETERSONS, AMS METEOROLOGIST: Once again, we're still talking about Arthur's strength, and you can see the structure now really getting more of that circular fashion to it hanging off the coast of Cocoa Beach. Currently already seeing those steady winds at 60 miles per hour. Remember, 39 miles per hour. That's what made it a tropical storm, 74 miles per hour, that's what makes it a Category 1 hurricane.

Now the latest model runs are expected to bring into that Category 1 hurricane even sooner so just off of the Carolinas as early as tomorrow. That is the concern here as the system continues to make its way up the eastern seaboard. Closest point it likely could reach is right off the outer banks there, right around Nag's head. We could see a potential landfall in that region.

But right now the consensus is hanging barely offshore and quickly exiting off to the east, kind of moving away from the shore line as it picks up with that jet stream and then weakening. Once it hits the colder waters, we'll see that way make its way in the remnant low.

Let's talk about the impacts. Since it's hanging off the coastline, the heaviest rain about 8 inches will be offshore. Off the coastline itself, one to two inches possible in Florida. Two to four through Georgia, but where it's going to be close toast that Charlene, that's where you'll have the threat for the heaviest rainfall totals, 3 to 5 inches possible through the Carolinas.

That's just one side of the equation. You still have the threat for storm surge. You got to add more water in there, 1 to 2 feet again in Florida, but where it's expected to be close, 3 to 5 feet of storm surge possible. The timing of all of this hanging off to Florida today, turning into a category one hurricane off the Carolinas and in through tomorrow.

Remember a lot of questions here in the northeast. Yes, the hurricane is staying offshore, but you have the cold front. The combination of the two will still bring heavy rainfall into the northeast so keep that in mind if you have the plans, all of that exiting off by Saturday -- Kate and Michaela.

BOLDUAN: That combo deal that makes it even scarier. All right, Indra, we'll get back to you. Let's get back down to Brazil though where Chris has been watching all the action for us. Chris, how was it last night? CUOMO: Boy, what a night, what a match to watch. I have to say. It was really a gift to be down here. You may notice. There's a 1 on my chest, and it represents several things. One of them is not so good. It's the number of goals we scored last night. However, it also represents the unity that came out of this World Cup.

You cannot exaggerate the significance of that for the U.S., to have so much international support that the team had here. It also represents one nation, one team because, boy, has U.S. soccer taken the U.S. by storm. You know that. You know you're into it in a way you weren't before, and it also represents the man who wears number 1, Tim Howard.

He made history last night, and I'll tell you. The real gift of watching the game was watching him. We were right there as he really was the U.S. defense last night and I'll tell you what, you should hang your head and should be bitter because the U.S., could have won last night. Here's a recap of the match.

(BEGIN VIDEOTAPE)

CUOMO (voice-over): Right from the beginning of the Belgium/USA match, the USA chant was echoing from the stadium in Brazil all the way back to a newly soccer-crazed America, and through regular time the U.S. gave the heavily favored Belgians all they could handle.

(on camera): Tie game. A lot of time on the U.S. end. They held strong, strong.

(voice-over): Strong. The perfect word to describe the human wall in front of the U.S. goal. Goalkeeper, Tim Howard. He seemed super human, setting a World Cup record for the most goals saved in a single game -- 16 saves, but even that number doesn't do the effort justice.

(on camera): Not today.

(voice-over): But eventually deep in extra time fate had its way and then what seemed to be the dagger a few minutes later, the U.S. now down 2-0. But that's when the grit of the red, white and blue showed once more. Substitute, Julian Green, just 19 years old, playing in his first ever World Cup, touching the ball for the first time finds the net.

UNIDENTIFIED ANNOUNCER: It's Julian Green. Would you believe it?

CUOMO: Re-energizing the American side to fight until the bitter end.

JULIAN GREEN, TEAM USA: It was a good goal, but, yes, at the end we're out of the tournament. We have to look to the future and give our best every game.

CLINT DEMPSEY, TEAM USA: It wasn't meant to be, but I think can be proud of what we did here, and, you know, I'll go home with no regrets.

CUOMO: That certainly goes for Tim Howard. Despite being on the losing side of the 2-1 contest, he's awarded the man of the match.

TIM HOWARD, GOALKEEPER, TEAM USA: It's bittersweet, you know. You always want to play well, but you want to play well in a win, and we just weren't able to do that tonight.

DEMPSEY: He's such a consistent player, world class goalie, and we rely heavily on him to be successful as a team, and he came up big for us in this tournament.

CUOMO: Back home a meaningful victory as well. Winning America's hearts, and profound respect, especially for the latest incarnation of Captain America.

HOWARD: Watching some of the scenes back home has been incredible, and, you know, it fills us with pride and inspired us, you know, to push forward, and the feeling, the passion at home, it was second to none.

(END VIDEOTAPE)

CUOMO: And that is why I have the number 1 on my chest today in subtle fashion. You know, if you go and look at Wikipedia right now and type in the entry for secretary of defense, it has been changed, and hopefully not temporarily to Mr. Tim Howard. And I'll tell you what, an even better image.

I want to bring in Lara Baldesarra. She is certainly the woman of the match for us here in Brazil. You've covered this brilliantly for us thus far.

LARA BALDESARRA, CNN INTERNATIONAL'S ANCHOR, "WORLD SPORTS": Thank you.

CUOMO: You've been invaluable to me helping me understand this crazy game, but a more lasting image I think will be all those kids that took to the streets last night after the match, playing soccer and hoping to be the next Tim Howard. I think that's the real big impact for this team that they made throughout this tournament. So, the question is Baldesarra, am I going too far? Does Tim Howard's play last night not deserve the hype that it's receiving?

BALDESARRA: No, no, no, no, no. You are right on point with this. He was an absolute beast. No other way to put it, whatsoever. He single-handedly kept the USA in this game. Tim Howard made saves that goalies dream of making. How he executed those saves. They came out of nowhere. They were shocking. It wasn't just that.

It was his defensive organization, you know, the way he instructed his defenders on where to be and his defense did lack a lot last night so he really needed to fill in for what they were missing. You know, you mentioned it, 16 saves, he managed to make. That's a record for the most saves by any keeper in any World Cup match ever.

He was utterly, utterly impressive, but at the end of the day, you can't save them all and you immediate to rely on your team to create offense and attack and score goals, and that just didn't happen. CUOMO: Fair criticism. Where were they last night? Where were the big names we kept talking about? Where were the great shots and great saves by the other goalie, who is supposed to be one or the two or three best in the world? Where was it?

BALDESARRA: He wasn't really tested. Courtois just 23 years old, absolutely phenomenal. The USA struggled with their touches. They struggled a little bit generating on their attack. They were on their heels, being pushed back. Like a full onslaught, full blitzkrieg right from the opening whistle, and it never really led let up.

We did see an attack, on the wings, along the phalanx, and those were two youngsters that I will talk to you about a little bit later. For now I think that it's important to remember that this is a team that we didn't really have the highest expectations for, and they didn't let us down. They didn't let themselves down.

After the match, I spoke to Clint Dempsey, and I asked him, are you going home with a sense of satisfaction knowing all that you've achieved, and he said absolutely, yes, and here's what else he had to say. Listen to this.

(BEGIN VIDEO CLIP)

DEMPSEY: We fought hard, and we left everything out there on the field. I mean, there's not -- there's nothing to regret. We go home with a clear conscience knowing that we gave it our best. Anybody's game to have today, and we were a little bit unlucky, and it wasn't meant to be.

(END VIDEO CLIP)

BALDESARRA: They were so inspirational for all of us, and they have really given us a lot of hope for the future. Most of all, I'm so proud of you, because you finally committed to somebody.

CUOMO: You know what? I hope it's not too subtle, but I needed to experience the full match to have it, and I feel very proud wearing it today because of what Tim Howard showed last night. Also, let's not forget, the German, the coach that we have said he was building this team for 2018. Lara will talk to us later about these two kids on the field last night who you could argue played the best other than Tim Howard, and one is 19 and one is 20, or something like that.

BALDESARRA: Yes.

CUOMO: We'll talk about them and also we're going to talk to Tim Howard. He's joining us here on NEW DAY. I think you've got to tune in. Got to stay with us, because we've got to convince him to stay on the U.S. squad. Lara, I'll be back to you in a little bit. Back to you in New York.

MICHAELA PEREIRA, CNN ANCHOR: For sure, U.S. soccer needs him. He has to stay.

BOLDUAN: It would not be the same without him. I don't understand how he protected the goal the way he did yesterday.

PEREIRA: His limbs extra long.

BOLDUAN: Go, go gadget, Howard.

PEREIRA: All right, let's take a look at more of your headlines right now. The suspected ring leader of the 2012 attack on the U.S. mission in Benghazi is due in court today. Ahmed Abu Khattala will appear this morning for a detention hearing in Washington just blocks from the White House.

He's been charged in the attack that left four Americans dead including Ambassador Christopher Stevens. Prosecutors say they expect to add more charges against Khattala as their investigation continues.

Overnight violence breaking out in Jerusalem after a body was found in a local forest. Israeli police are trying to determine if the body belongs to a missing Palestinian teenager who may have been killed as an act of revenge for the abduction and murder of three Israeli teens.

Want to get right to Atika Shubert who have been following developing from North Jerusalem. This big concern is that this was an act of retaliation.

ATIKA SHUBERT, CNN CORRESPONDENT: Well, there's certainly fears that that's exactly what it is, but for many angry local residents, Palestinian residents, there is no question that's exactly what they see this as, a revenge attack. Things are very tense here at the moment.

In fact, I'm going to spin the camera around very briefly here. There's a lot of police trying to disperse us here. Let off a stun grenade. Police trying to disperse resident who are very angry here at what's been happening. The area that we're in right now is where that Palestinian teenager was abducted, so they are trying to disperse. I have to get off the line. They are trying to disperse us. Thanks very much.

PEREIRA: Atika, obviously your safety is the primary concern. Please get to safety, both you and your photographer. We'll continue to watch this. Shows you just how tense this situation is, tensions already boiling over where she is. We're obviously concerned about her safety. We'll get back to her if we can a little later.

Other breaking news developing overnight in South Korea. The defense ministry there says the north has launched more rockets off its coast. Two short range rockets flew about 100 miles before they crashed into the sea. This is the third time in a week that the north has made a move like this. This comes after Seoul rejected a special proposal from the north to improve relations and reduce military tensions, including a request to cancel military drills with the U.S.

Army Sergeant Bowe Bergdahl is taking his first steps back into normal life. A reintegration team has been supervising Bergdahl outside the base where he's getting outpatient care. Bergdahl will be assigned to a new army unit in a few weeks after he finishes reintegration. The "New York Times" is reporting that Bergdahl recently wrote a letter to his parents, but that he's still not met or spoken with them. "The Times" also says he's been in touch with Kim Harrison. That's a friend that he sent his journals to before he was captured. Bergdahl was released in May, as you'll recall, after five years as a prisoner of the Taliban.

The Border Patrol is expected to transfer a group of undocumented immigrant families to a processing center in California today. This all comes a day after this. Protesters blocking migrant families from arriving at a federal facility in Marietta, California.

Very tense standoff there. Three busloads of immigrant families had to be re-routed to another processing facility near San Diego. The undocumented immigrants were being removed to relieve overcrowding at border facilities in Texas which have been overwhelmed by thousands of South American immigrants crossing the border.

Again, just back to that story in Jerusalem, very, very tense time, and it's very concerning to see how this -- how the disappearance of that young Palestinian boy, they believe that he may have been killed in retaliation for the murder of those three Israeli teens. It just shows you an already bad situation is going from terrible to worse.

BOLDUAN: It's never been good, and it's horrible when the tension that they are dealing with has to be looked through the lens of tragedy of losing now four teenagers.

PEREIRA: Four teenagers, yes.

BOLDUAN: So, we'll be following up on that and hopefully, we'll go back to Atika whenever we can.

Let's take a break, though. Coming up next on NEW DAY: A rule change in the House of Representatives could make it harder to find out who is paying for the hundreds of free trips lawmakers enjoy every year. It's raising red flags.

We're going to talk to the former governor and DNC chairman, Howard Dean, about that.

PEREIRA: Chris is going to go one-on-one with Team USA's goalkeeper, MVP, the wall of defense, the new defense secretary, is that what they decided he's called, Tim Howard. His take on their wild ride through the World Cup and his elevation to hero status.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ATIKA SHUBERT, CNN CORRESPONDENT: I'm going to spend the camera around very briefly. Oh, excuse me.

There's a lot of police trying to disperse us here. Sorry for all that noise, but it seems like they just let off a stun grenade near us, as you can see -- (END VIDEO CLIP)

PEREIRA: Welcome back to NEW DAY. That was a dramatic scene playing off moments ago, a stun grenade going off in Jerusalem right next to our correspondent and crew, our Atika Shubert. Violence has broken out over the death of a Palestinian teenager. Israeli police are desperately trying to figure out if that death was the act of revenge for murder of the three Israeli teens.

We want to get back to Atika Shubert. She is north Jerusalem. She has been moved to a safer location. We see you with the helmet on.

And, again, assure us that you're safe and sound where you are, Atika.

SHUBERT: We're fine where we are now. Basically, what happened is we were right behind the red police tape, and behind the red police tape, you can see the shop on the corner. That's where that the Palestinian teenager was abducted, and that's why this is a particularly heated area.

What happened at the time, we were already behind the police lines but you see this gas station right next to us here. There were a number of angry residents in here, and police decided they wanted to disperse them very quickly and suddenly so they let off several stun grenades. We happened to be doing a live right there when it happened. And it happened without any warning.

We've been pushed now just a few meters and it is safer at the moment, it seems. What they have been trying to do is to get rid of -- you might be able to see the pockets of angry teenagers there in the back. They've been throwing stones and slingshots. They've been responding with those stun grenades and tear gas, and this has been going on for hours.

It is exactly what they were trying to avoid recently, that cycle of violence and revenge attacks that seems to have been kicked off, Michaela.

PEREIRA: Calls for calm, but, again, we know that the Jerusalem justice minister says there will be zero tolerance. The investigation continues. Very tense situation there.

Atika, please let us know what more you're learning and, of course, stay safe. Thanks so much for that report.

Kate?

BOLDUAN: All right.

Members of Congress often embark on all-expense paid trips around the world. In 2013, lawmakers and their aides took nearly 1,900 trips at a cost of more than $6 million. Lawmakers have long had to disclose who was picking up the tab on their annual financial forms, but that rule has quietly changed. Members, they still need to report this travel, but the House Ethics Committee now is telling members that they no longer to report it on a disclosure form that is most watched by the public, which includes watchdogs and the press to watch where they are -- where money is being spent and where they are going and who is paying for it.

Let's discuss this with the former Vermont governor, Howard Dean. Dean, of course, also former chairman of the Democratic National Committee.

Governor, it's great to see you.

HOWARD DEAN, FORMER DNC CHAIR: Nice to be on, thanks.

BOLDUAN: Of course. So, it's not just that the rule was changed. It was not announced. It happened very quietly, picked up by a very eagle-eyed "National Journal" reporter.

What do you make of this rule change?

DEAN: I -- you know, it just goes to show how unbelievably out of touch congressional leadership is. Here they are at the lowest approval ratings ever in any Congress. I think they might be below 10 percent, and they switched the rules around internally to benefit themselves and conceal financial transactions.

I just can't get over how stupid people can be in politics. You know, Washington people are supposed to be smart. This is just absolutely unbelievable.

BOLDUAN: Well, you know, it feeds into the perception that regular people, voters, they don't get trips paid for when they want to go somewhere, that these look like special handouts, that these lawmakers are getting with little value. That's the perception, and sometimes they bring along their spouses. Sometimes they bring along their children.

DEAN: Right.

BOLDUAN: Are these all expense paid trips worth it?

DEAN: Well, some of them are, yes. Codels as they're called, the congressional delegations, are in fact, some of them have been very helpful. And they really do educate Congress people about what's going on in the rest of the world and so forth.

I don't begrudge them going on the trip. Some are junkets but they're less of those that there used to be. What I can't get over is, here we are in a state -- in a state in this country where people don't believe their institutions work for them. People think Wall Street is rigged and small investors aren't investing anymore. People think Congress doesn't work and is out of touch.

And how could the leadership think that this was a smart idea? Just the optics alone is unbelievably stupid, and how far out they could possibly -- how far away from how they understand what local -- what regular people or home constituents have to do.

This is just -- how do you -- how do you sell this? I can't imagine what they were thinking.

BOLDUAN: Well, when asked the simple question of why -- I mean, according to the House Ethics Committee and even the speaker's office, they said that it was about reducing duplicative paperwork. I mean, you're close with the men and women in Congress. Is duplicative paperwork really that big of a deal? Is that their major issue?

DEAN: These guys -- well, that's the problem. They are doing nothing about jobs. They are doing nothing about immigration. They are doing nothing about anything, as far as I can see, and so, what do they spend their energy on? Fiddling around with their own paperwork so they can go on trips.

I'm just amazed -- I'm amazed at how politically out of touch this Congress is. I've always thought Washington was behind the time, for a lot of reasons. But they are so far out of touch that this is extraordinary. You know, I think this is going to probably be an issue.

This is the kind of issue that kills you. You know, it's interesting. Everybody argues about jobs and all the hot button things, but this is kind of a character issue and people latch on to this. They're going to find out who voted for this and who changed this, and they're going to punish them at the polls, they are.

BOLDUAN: Do you think it will be changed? I know that the Minority Leader Nancy Pelosi is coming out saying she would like to see this rule changed, but, you know, she has representatives on that committee as well. They had to vote for this on the House Ethics Committee. This wasn't just one person pushing something through, as far as we know.

So, do you think it's going to be changed now?

DEAN: I agree. Yes, I -- it better be. I mean, as I said, the optics is terrible. It just shows a whole group of people who we're paying, who are on our payroll, who are paying no attention to anything we care about and just worry about their own paperwork and their own trips and their own little life inside of the Beltway. This has always been the case.

And, again, this is not -- this is not rising to the level of people stealing money.

BOLDUAN: Right.

DEAN: These trips, most of them, some are junkets, but most are worthwhile doing.

What this rises to is the issue of how out of touch people are. How -- they spend their money on paperwork and whether they should fill out this or that for their trip instead of doing anything jobs, anything about the economy, anything about education, anything about climate change. It is just -- it's in some ways you throw up your hands in despair at our representation. BOLDUAN: I also think it speaks to anyone with a little bit of memory

to remember kind of where this all began, back in '07 with the Jack Abramoff scandal. I mean, when you look at the way they have been tracking travel, the travel expenses since, they just said in 2013 that it was the year that members and aides took more free trips than any year since the Abramoff scandal broke, that's a red flag in and of itself, and why these disclosures are so important, though they do need to disclose, the fact that they can't do it in the most transparent way possible, blaming paperwork that seems to be the problem, right?

DEAN: That's a very, very good point, because what you see here is the beginning -- this happens every time there's a big scandal. They -- they fix it. They put in some safeguards and then gradually when nobody is looking, they start to erode the standards.

So, you're right. This is -- this is exactly what's happening. They are starting to pull back hoping nobody will notice, that it will be easier to go back to the same old way of doing things. So while in and of itself I don't think this is corrupt, I think (a), it shows they are out of touch and, (b), it leads to corruption because there's one little step away from the safeguards that were put in.

You know, in many ways it's like the Supreme Court undoing Citizens United. I mean, voting for Citizens United. There were safeguards put in in 1974 after the Watergate scandal, and gradually over years they have been eroded partly by the right wing court and partly by the Congress itself.

So, the standards put in to stop these kinds of scandals is disappearing. That's what this is an example of. It's OK, we have -- it's '07. Abramoff is now six, seven years out. Let's start eroding these scandals and see if anybody notices so we can spend the public's money the way we want to without any -- without any accountability. And I -- that is the real danger here.

BOLDUAN: Well, silver lining in this is that one reporter put it out there, found it and people are talking about it.

DEAN: Right.

BOLDUAN: And, hopefully, the attention on it and the transparency will change it.

Governor, it's great to see you. Thanks so much.

DEAN: I've had my battles with the press, but that's what the press is for to stop this stuff from happening. So, congratulations.

BOLDUAN: Let's battle again some day, please? We're too nice to each other today.

DEAN: Thanks a lot.

BOLDUAN: Talk to you soon.

Michaela?

PEREIRA: All right. Great. Thanks so much.

Next up on NEW DAY, frightening is up -- look at that. Food truck exploding into a fireball in Philadelphia. It sent a dozen people to the hospital. We'll have details for you ahead and what triggered this blast.

But, first, let's take you back down to Brazil.

Chris?

CHRIS CUOMO, CNN ANCHOR: The big story from down here, of course, the U.S. team exits the tournament, but the man of the match was on the U.S. side. His name is Tim Howard.

I know you want to hear from him fresh from the night's experience. He's here first on NEW DAY for you this morning. We'll talk to the U.S. goalkeeper in just a little bit.

Stay with us, friends.

(COMMERCIAL BREAK)