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The Pope's Final Day; Obama Changes Tone on Sequester; Was Bob Woodward Threatened?; Judge Moonlights as Comedian; Arias Jurors Hear Sex Tape Talk; Show Stopper; Curry Pours in Career-Best 54 Points

Aired February 28, 2013 - 09:30   ET

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

CAROL COSTELLO, CNN ANCHOR: Right now at the Vatican, it's the beginning of the end to Pope Benedict's reign. The pope wrapping up his final farewells, this will be the first retirement of a pope since the middle ages. Before stepping down as leader of the Catholic Church Pope Benedict is going through the final steps.

Here he is earlier this morning appearing before an assembly of the world's cardinals. He met with each of them individually for just a minute or two. And it will now be up to many of these cardinals, these men, to choose his successor. It's an almost unprecedented challenge to an ancient religion grappling with the turmoil and scandal that's dogged Benedict's reign.

There's no time frame for electing the next pope, but here's how Benedict's leadership will end. In the next hour at 10:45 eastern the pope leaves his Vatican home. He'll fly by helicopter to his summer residence at Castel Gandolfo. At 2:00 p.m., his reign ends and the Catholic Church faces its challenges without an official leader.

Stay with CNN all morning long as we have live coverage of the pope's final day. In about 40 minutes, some interesting information about the conclave that will pick the new pope. Everything from the history of the smoke signals to the longest it's ever taken to choose a pope. And this morning at 10 eastern, a CNN special report we'll have live team coverage as the pope leaves the Vatican and travels to Castel Gandolfo and then officially resigns.

"Political Buzz" is your rapid fire look at the best political topics of the day. Three topics and 30 seconds on the clock. Playing with us today Roland Martin CNN political analyst and --

ROLAND MARTIN, CNN POLITICAL ANALYST: Hey!

COSTELLO: And Will Cain CNN contributor and analyst at "The Blaze." Hi, Will.

WILL CAIN, CNN CONTRIBUTOR: Good morning.

COSTELLO: Let's talk about the forced spending cuts, one day to go, no deal, it's still not exactly clear what will happen if the forced cuts take effect and President Obama may now be softening his message.

(BEGIN VIDEO CLIP) BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This is not a cliff. But it is a tumble downward. A lot of people may not notice the full impact of this sequester, but this is going to be a big hit on the economy. Companies are preparing layoff notices. Families are preparing to cut back on expenses. And the longer these cuts are in place, the bigger the impact will become.

(END VIDEO CLIP)

COSTELLO: Okay. So, you see how the tone is changing, and does that mean the sky won't fall after all, and if it does mean that, then Republicans were right. So, the question, what if the sky doesn't fall, Roland?

MARTIN: Well, first of all, Republicans were right about it. Then when you hear Governor Bob McDonnell talking about how the Virginia economy will be decimated, he's also a Republican, so I'm not quite sure. Look at the end of the day you have politicians on both sides who want to make the argument that the economy is going to be negatively impacted if you have these draconian cuts. Remember, it was supposed to be the supercommittee's job, then they were supposed to come to an agreement and nobody came to an agreement. So, this comes down to really philosophical debate here with fiscal conservatives saying, hey, go right ahead. Then, of course, the president who wants to say, no, guess what, it's going to hurt the very people disenfranchising the poor. Bottom line is both of them have to have lots to blame for this.

COSTELLO: Will?

CAIN: Draconian, 1.2 percent, on a $3.6 trillion budget. That's draconian. Here's the reality. President Obama now realizes over the last several weeks he's politically overplayed his hand. He's hyped up hysterics. He's talked about the current level of government spending that total $3.6 trillion, that's the only thing saving us from total misery. He's acted like it would be children starving, the military deficient, and by the way we have to let illegal immigrants go out of our deportation center. Did that yesterday. Now he realizes the thing's actually going to go through. The hysterics didn't work, the hype didn't go through. And now I have to let people know, all that I talked about isn't true. It won't come into play tomorrow or next week or next month.

MARTIN: No Republicans hyped it? I thought both were hyping it.

COSTELLO: We've got to move on to the second question. We've learned that a top Obama aide Gene Sperling is the man who e-mailed investigative reporter Bob Woodward saying, of course, Sperling said it in an e-mail that Woodward would regret publishing his op-ed on these forced spending cuts, that op-ed was very critical of the White House and of the deal, said the deal originated with the president and that the president went back on the deal with Republicans that he would not ask for more tax hikes, so is the White House trying to intimidate the famous Woodward? What's happening here, will?

CAIN: That's what Woodward's insinuating, right? He's been threatened. He's been intimidated. I've seen the e-mails with Gene Sperling and many have suggested it's not intimidation. What we're suggesting is it's inaccurate and therefore you'll regret that inaccuracy. Whether or not it's intimidation or manipulation, the point is larger and that is for the past four, eight years the press has largely been beholden to Obama's message exactly as he wants them to report it. Do you know why? Because he doesn't need them. He's not accountable to the White House press gallery, he's not accountable to the media because he has his own. He can reach audiences without the intermediary of the media and by the way every president going forward will have that same benefit. We have to find new ways to hold him accountable.

COSTELLO: Roland?

MARTIN: That was the exact same arguments liberals used by saying that President Bush can go to talk radio, he can go to conservative websites, go to Fox News. Carol, I've been a journalist since 1991, okay? I've covered city halls, county governments, state officials, how many times have you had somebody threaten you by saying, you know, don't report that, you're going to regret it? Seriously?

COSTELLO: A million times.

MARTIN: This is all drama, all right? So, this is wonderful, D.C. Beltway, oh, my god, Bob Woodward, hey, he's a great reporter, but seriously it's happened to mayors and county commissioners and councilmen, it ain't that big of a deal seriously.

COSTELLO: On to the last and final topic. There's a sitting judge, a judge, in New Jersey who is also a comedian and now the New Jersey Supreme Court will decide if he can have both jobs at once, you know, be a judge and a comedian. Now, this judge's stage name is Vince August and he also appears in a TV show "What Would You Do?" where he jokes about racist stuff. Oh, my gosh, we don't have the sound, I'm going to die. Really? we don't have the sound of this --

CAIN: Everybody's seen that show.

MARTIN: Sorry, no, no, I haven't seen the show.

COSTELLO: Wait, wait, wait, okay, good, because we have the sound. So, this is the judge in his job as a comedian. Let's listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don't need any problems from you people. You guys come in here all the time and you start taking, I don't need that problem anymore.

UNIDENTIFIED FEMALE: All we want is the shop.

UNIDENTIFIED MALE: Shoplift, not shop. Come on. Stand here, please. Do I have to spell it out? what do I need ebonics? Get out. Out. Get out. You are scaring the other customers. The actual people that spend money.

(END VIDEO CLIP)

COSTELLO: Obviously the judge was the bald guy. Is it right for a judge to be making off-color racist jokes like this on TV and actually keep his job on the bench?

CAIN: Well, those aren't jokes. He's playing a character on that show "What Would You Do?" and the whole point is to play a racist character and se how people around him would react. He's an actor. He's playing a character there, and the implication is that by being a comedian or being an actor you, therefore, project dishonesty on your job as a judge. How about actually what kind of job does he do as a judge? Judge him on that measure. And most of the part-time judges are lawyers and the other half, does that mean all lawyers are honorable?

COSTELLO: Oh, my god, that's much worse than a comedian that makes racist jokes. You're a lawyer, aren't you?

CAIN: Yes. Ask the audience right now if they think I'm honorable.

MARTIN: So, Carol, I'm trying to understand something, Denzel Washington plays a corrupt cop in "Training Day." Al Pacino plays a corrupt CIA officer in "The Recruit." So are they supposed to not be involved with the Boys and Girls Club and some other charity? I mean, seriously, folks might want to back up a little bit here. And also you can separate what somebody's job is. I don't understand why people can't figure these things out. The New Jersey Supreme Court? You need to say, this guy should be able to keep his job. This is dumb.

CAIN: By the way, New Jersey Supreme Court is that the bastion of honor to be judging all these things?

MARTIN: I mean, seriously, he was acting.

COSTELLO: Point taken, point taken. CNN political analyst Roland Martin and CNN contributor Will Cain, many thanks.

CAIN: Thank you.

MARTIN: Thanks a lot.

COSTELLO: Toothbrushes, lightbulbs, flat screen TVs, chances are you've looked for a better price online and found it on Amazon, but for every winner, there's a loser. We'll tell you who is getting hit the hardest by one online giant.

(COMMERCIAL BREAK)

COSTELLO: You know, you've done it, found something on a store shelf and gone online to find a better deal and chances are you bought it from Amazon. Retailers call that showrooming and it's a big problem for stores like Best Buy and Bed Bath & Beyond. Alison Kosik is at the New York stock exchange with more on this. How much impact does Amazon have on the big box stores? ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It has a huge impact on the brick and mortar stores, so now there's a market research firm called Place (ph) that released results of a big --

(CROSSTALK)

COSTELLO: Alison, wait a minute. Before you go on -- Alison -- Alison --

(CROSSTALK)

KOSIK: The survey found that the number one sort of at-risk retailer of showrooming is Bed Bath & Beyond even with the 20 percent coupons that we can't live without before we walk into Bed Bath & Beyond. Coming up at number two at risk is Petsmart, followed by Toys 'R' Us, Best Buy, and Sears. And the biggest reason the problem is happening and this problem is growing, Carol, is because of the smartphone and Amazon price check apps. They really make it easy to compare those prices right there in the store. You kind of feel like a traitor when you are standing there, though, Carol.

COSTELLO: You do. I was trying to interrupt you but you did not hear me and I apologize for interrupting you, and I heard cheering behind you and we crossed the 14,000 mark.

KOSIK: Oh, we did. My thinking though is that people weren't cheering about that but there's a lot of activity about who's ringing the opening bell. At this point, I think you're going to hear the cheering when the Dow reaches 14,164. That's really kind of the focus that everybody's on at this point.

COSTELLO: Okay, thank you, Alison. We appreciate it as usual.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Graphic testimony again fills an Arizona courtroom as jurors hear a taped -- hear a taped conversation between Jodi Arias and Travis Alexander. These conversations are now contradicting earlier testimony.

Randi Kaye explains.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): Jodi Arias had a nickname for Travis Alexander, she told the court she liked to call him "Hottie Biscotti". Why then, if she had such affection for him did she shoot him, stab him dozens of times and cut his throat. Judging from the couple's phone sex tapes played in court today Arias seemed to be enjoying the relationship especially their sex life.

(BEGIN AUDIO CLIP)

JODI ARIAS, ON TRIAL FOR MURDER OF TRAVIS ALEXANDER: Remember the first time that you and I grinded? At Ehrenburg, it was so hot.

(END AUDIO CLIP)

KAYE: That enjoyment strongly contradicts her testimony that Travis Alexander physically and sexually abused her and made her feel like a prostitute. Here's more.

(BEGIN AUDIO CLIP)

ARIAS: I really would like to marry some -- a return missionary but, like you someone who can be freaky. I worry that I might feel like a wilting flower is all who never really blossomed to her full potential at least in the sexual realm. I feel like I have with you but like, I still have plenty of blossom time left.

(END AUDIO CLIP)

JUAN MARTINEZ, PROSECUTOR, MARICOPA COUNTY, ARIZONA: One of the other things that we know from that conversation in terms of your blossoming is that you and Mr. Alexander discussed making a movie, right?

ARIAS: Yes.

MARTINEZ: And you discussed making a sexual movie, correct?

ARIAS: Yes.

MARTINEZ: And it wasn't like, you were saying, no, I don't want to do that sexual movie, you actually were into it as much as he was, right?

ARIAS: Yes.

KAYE: The couple's text messages about their plans for the movie were shown in court. In one text Arias suggested she wanted to dress up and more.

MARTINEZ: It also implies that or indicates that you, that's the person that liked this sort of activity and looking like a horny little schoolgirl, right?

ARIAS: Yes.

KAYE (on camera): It's no secret Jodi Arias hasn't exactly been forthcoming with the truth, not only about her relationship with Travis Alexander but also about what really happened the night she killed him.

First she told investigators she wasn't even at his house that night. Then she changed her story telling investigators and a reporter from "48 Hours" that it was a home invasion with two masked intruders.

Clips of that television interview were played here in court including this part about her miraculous escape as her boyfriend lay dying --

ARIAS: At that point I just -- I just ran. I pushed right past him. And I flew down the stairs, like, there's part of, like, I wasn't even in my body so I'm, you know, trying my best not to stumble down these stairs and I just went out as fast as I could and out the door and slammed the door behind me and got in the car and left.

MARTINEZ: And that's another version of the events that occurred on June 4th of 2008, correct?

ARIAS: Yes.

MARTINEZ: And they're not true.

ARIAS: Neither of them. Well, it's all the same things, just different versions, I couldn't keep my life straight.

KAYE: And that wasn't the end of her lies. In court she was asked about a phone call she made to the detective investigating Alexander's murder just days after she killed him. On that recorded call she lied again playing dumb about how he was killed, even though she knew she'd stabbed him and shot him.

(BEGIN AUDIO CLIP)

ARIAS: Do you know when all this happened I mean, I got a call last night --

UNIDENTIFIED MALE: Sometime between Thursday and last night. We're not sure yet.

ARIAS: Was there a gun? Was there --

UNIDENTIFIED MALE: I can't say what type of weapon was used.

Do you know of him having any weapons at all in the house?

ARIAS: His two fists. Really.

UNIDENTIFIED MALE: That's it.

KAYE: Randi Kaye, CNN, Phoenix, Arizona.

(END VIDEO CLIP)

COSTELLO: Fifty minutes past the hour, time to check our "Top Stories".

Private First Class Bradley Manning takes the stand in a Ft. Meade, Maryland, courtroom this morning. Manning expected to explain why he released classified documents through WikiLeaks. This was the only -- the second time Manning has testified in open court since his arrest in 2010.

And when heavy snow hits places not used to it, you can have some unusual stories like this truck buried in a snow drift in Oklahoma. A couple of teenagers discovered the truck and feared someone may have been stuck inside. There wasn't anyone but the guys did find something familiar. The truck belonged to their high school classmate. In entertainment news Bobby Brown heading to jail next month. The singer will serve a 55-day sentence for his second drunken driving conviction in a year. Brown's license was suspended after he pleaded no contest to another DUI charge last summer.

(COMMERCIAL BREAK)

COSTELLO: "Talk Back" question today, "Are forced spending cuts a good idea?"

This from Linda, "Not a good idea. The economy is bouncing back slowly, which it should do. Boehner and his clan like to throw their weight around and do what's best for them, not the American people."

This from Wally. "We have had deficit spending far too long. It's time cuts were made even if they're not pretty."

This from Harry, "I have mixed feelings, I see that cuts must happen but none of the government programs address the true causes."

This from George. "It's like forcing an overweight person to go on a diet. They might not like it but in the long run it's what's best."

And this from Laura, "I'm torn. I know we need the cuts but they're going to affect millions of people from all walks of life. This is going to be devastating for all involved."

Keep the conversation going. Facebook.com/CarolCNN or tweet me @CarolCNN.

(COMMERCIAL BREAK)

COSTELLO: A show-stopping performance set the NBA record books ablaze at the mecca for basketball. Jared Greenberg joins us for this morning's Bleacher Report.

JARED GREENBERG, BLEACHER REPORT: Yes, Carol, no one has had a better individual performance in the NBA this season and his name is not Lebron, Kobe or even Durant.

If you didn't know, now you know. Meet Steph Curry. He should have been selected as an all-star but wasn't. And last night Curry made a loud statement scoring an NBA season-high 54 points and he nearly got the record for three-pointers made in the game.

Curry settled for 11 triples, tying for second all time. One of the best shows Broadway has ever seen. But here's the kicker, Curry's masterful performance wasn't good enough. The Knicks still beat Curry and the Warriors.

There are upsets and then there is this a mind-blowing outcome -- Penn State shocked the college basketball world winning its first conference game in more than a year and the Nittany Lions did it against the fourth-ranked team in the nation. The season of ridiculousness continues. Students and alum at least today willing to admit that they do indeed have a basketball team at Penn State. An American tradition was in serious jeopardy. And by serious, I mean not serious at all. Guido the Italian sausage has been found. The seven-foot encased meat product is a vital part of the Milwaukee Brewers game day sausage race. Two weeks ago Guido disappeared during a beer tasting event. And exhaustive search commenced Wednesday. Two anonymous men dropped Guido off at a bar.

Everyone in Milwaukee can now take a deep breath. The sausage race lives on. The takeaway here, Carol, alcohol and a $3,000 sausage costume -- they're probably not the best mixture.

COSTELLO: I hope he was having fun.

GREENBERG: Another lesson here, don't mess with NBA TV Canada broadcasters. No one is more focused on the job than Sherman Hamilton, Raptor's forward Mickael Pietrus is doing his best to be a distraction however Sherman Hamilton on the right side of your screen is unfazed. He says aren't nobody got time for that. Rated tenth as a video bomb by Pietrus. But Hamilton with a surgical-like approach that can't and won't be disrupted.

Right now on Bleacher Report, the staff reminds us that it is always football season. Log on and check out the post-combine mock NFL draft. Find out who your team is targeting right now on BleacherReport.com.

All right, Carol, I'm convinced, broadcasting classes across the country, start using that video. Stay focused no matter what's going on in the background.

COSTELLO: You know a news director told me once if something like that happens in the background, please say something about it.

GREENBERG: Right.

COSTELLO: Because people are wondering about it, but it was fun. Thank you very much, Jared.

GREENBERG: I'm on the lookout now.

COSTELLO: Thank you Jared.

Our special coverage of the Pope's last day. Erin Burnett and Chris Cuomo will anchor our coverage.

(BEGIN VIDEO CLIP)