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Markets Pointing to Higher Open; A-Rod & MLB May Strike Deal; SeaWorld Strandings; Snowden's Departure; Sentencing Hearing for Ohio Kidnapper

Aired August 01, 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: We are still monitoring what's happening in a Cleveland courtroom. This is the sentencing phase of Ariel Castro's trial. We expect him to get life behind bars, plus 1,000 years. He accepted a plea deal. When the proceedings really get going on, we'll take you back to Cleveland.

But it's time to talk about some other stories we're watching right now in the NEWSROOM at 30 minutes past.

The opening bell just ringing on Wall Street as traders prepare for what could be another record-breaking day. Christine Romans is in New York.

Don't you just get tired of talking about this?

CHRISTINE ROMANS, CNN BUSINESS ANCHOR: No, because I was really getting tired of talking about how bad things were five years ago, Carol, so I'm actually relishing it. Look, you could see record highs for the Dow Jones Industrial average today. And 15,536 is the number you just saw there on the Dow. It would have to close above 15,567 to make it a new record, a record high for the day.

We've seen one after another of these records this year as the stock market has reflected a slowly recovering economy. And also, you know, good corporate earnings numbers. Companies making money, not necessarily by hiring a lot of people, but certainly by putting money in the bank and managing to squeeze out more profit for their shareholders.

Last month, July, very good for - very good for investors. All the major averages up 4 percent to 7 percent for the month, for the year. You've got stocks up about 18 percent or 19 percent. More than anything, people say, what do I do now? And the answer is, make sure you're balanced appropriately for your risks and for your age -- stocks, bonds, cash and other investments. It's very important to take some time after a big run-up like this and make sure you're in the right place and that you are balanced correctly.

We've got some data this morning. Jobless claims at a five and a half year low, Carol. So that was a piece of economic news, right, that the market seemed to like.

And also, you know, the Fed had a meeting yesterday, Carol, and the Fed didn't signify that it was going to, you know, move any faster on the so-called taper, pulling back the stimulus from the economy. Wall Street liking that as well.

So watch very closely. It could be another good day on the market, Carol.

COSTELLO: All right, Christine Romans, many thanks.

In other news -

ROMANS: You're welcome.

COSTELLO: Thanks, Christine.

In other news this morning, Edward Snowden has left the Moscow airport. That's according to the NSA leaker's Russian lawyer. He tells CNN that Snowden's application for political asylum has been approved and that Snowden can now legally stay in Russia for one year.

Minnesota and Rhode Island become the 12th and 13th states, along with the District of Columbia, to allow same-sex marriages. The new laws went into effect on midnight on Thursday and hundreds of couples marked the occasion by tying the knot. The latest Gallup poll shows a majority of Americans think same-sex marriage should be legal in all states.

"Rolling Stone," well, it looks like all that bad publicity was good publicity. Despite the controversy, the issue of the magazine featuring the alleged Boston bomber Dzhokhar Tsarnaev is a top seller. The issue sold 13,000 copies. That's more than double the magazine's usual sales.

In sports, Alex Rodriguez may be ready to cut a deal with Major League Baseball. ESPN reporting that reps for A-Rod are negotiating a settlement that could give him a significant suspension, but keep him from a lifetime ban. Now this development comes as baseball prepares to hand down punishments in the Biogenesis scandal. CNN Sports' Joe Carter is following it all in Tampa.

Good morning, Joe.

JOE CARTER, BLEACHER REPORT: Hi. Good morning, Carol.

Yes, Bud Selig's threat to ban Alex Rodriguez for life is certainly being heard by Alex Rodriguez and his reps. Because if you remember earlier this week, Alex Rodriguez's attorney said that they would fight any suspension coming their way, no matter its severity. So if we do see a negotiation and eventual settlement, likely that Alex Rodriguez would be suspended for the rest of this season and the entire 2014 season, which means he would return some time in 2015. A suspension means absolutely no salary during that time and that could cost Alex Rodriguez somewhere south of about $35 million, which, obviously, is the most costly suspension in sports history.

Now, we're here at the Tampa facility, that's the Yankee's spring training facility typically, and Alex Rodriguez just showed up here a few minutes ago. His typical routine as he has all week long, showing up for workouts as he continues to rehab to get back with the team. The Yankees said that he is going to play in what they call a simulated game today and they say that he will be assigned to a minor league team tomorrow.

Now, no word on what minor league team or what level, Carol, but certainly it's going to be very interesting if baseball has not yet made a decision on which way they want to go with this Alex Rodriguez situation.

Carol.

COSTELLO: I'm just curious, how did the other players interact with him, or do they?

CARTER: Not a whole lot of interaction. I mean we've been here all week and watching him work out. He spends about an hour in the batting cage, takes grounds balls, runs bases and then he goes inside the facility. There's not a whole lot of interaction with other players. He does spend quite a bit of time with other coaches. And then after his workout is finished, he leaves the facility without saying anything to any media or fans. And then we wait for him the next day. So really not a whole lot of interaction as we've seen following him the last few days.

COSTELLO: All right, Joe Carter reporting live for us from Tampa. Many thanks to you.

Coming up in the NEWSROOM, Ariel Castro in court now. Any minute now we're expecting him to speak. We'll take you back live to Cleveland in just a minute.

(COMMERCIAL BREAK)

COSTELLO: SeaWorld is already taking heat for a video that showed a killer whale stranded outside its tank in Orlando, Florida, while visitors screamed for help. Well, it's happened again. New video has surfaced of a bloodied dolphin stranded on the concrete after jumping out of its enclosure in the SeaWorld in San Antonio, Texas. Nischelle Turner has more for you.

(BEGIN VIDEOTAPE)

NISCHELLE TURNER, CNN CORRESPONDENT: According to the president of the International Theme Park Services, which is a consulting firm to the theme park industry, SeaWorld ranks third in top attractions in the United States. But now, this is the second video we've seen surface in a week that paints a not so pretty picture of the park.

TURNER (voice-over): The video is unsettling. A SeaWorld dolphin lying on the ground, flailing outside its tank. This footage, newly released by the People for the Ethical Treatment of Animals. They say the dolphin was bloodied and flailed there unhelped for minutes. It's the latest bomb in PETA's fight against SeaWorld's captivity of marine animals. But a spokesperson for the theme park says this video is misleading and was shot more than a year ago. They say, quote, "the dolphin involved is healthy and doing fine today. Our zoological staff moved quickly to assist the dolphin. She was examined by our staff veterinarian and she was back in the water in less than 30 minutes." The video is just the latest in a rising wave of bad publicity that first hit the theme park last month with the release of the documentary "Blackfish."

UNIDENTIFIED MALE: We need S.O. to respond for a dead person at SeaWorld. A whale has eaten one of the trainers.

TURNER: And then, another blow last week.

UNIDENTIFIED FEMALE: The dolphin!

UNIDENTIFIED FEMALE: The dolphin!

UNIDENTIFIED MALE: He's stuck.

TURNER: With a viral video showing a pilot whale stranded as disturbed spectators look on. Witnesses say the whale flaundered helplessly for nearly 30 minutes. SeaWorld says these whales come out on the ledge all the time and the animal was never in danger. Attorneys for PETA tell CNN, quote, "we're starting to see more and more people coming forward with complaints and videos like the two we've seen this week." But SeaWorld says, these images are inaccurate and the animals in them were unharmed.

TURNER (on camera): When we spoke with the president of Theme Park Services, he says he believes, even with all of these videos surfacing, that the damage to SeaWorld will be minimal. He says documentaries like "Blackfish" he believes will simply come and go. Now, we should say the "Blackfish" documentary is coming to CNN. CNN Films has purchased the TV rights to the film. It will air on our network October 24th.

Back to you.

(END VIDEOTAPE)

ANNOUNCER: This is CNN breaking news.

COSTELLO: All right, we told you at the top of the show that Edward Snowden, the NSA leaker, has left the Moscow airport because Russia has granted him temporary asylum. Snowden gets to stay in Russia for one year.

Well, we have the first reaction now from U.S. officials. Barbara Starr got that for us.

Barbara, what did they say?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Carol, the very initial reaction coming in. I've spoken to a U.S. official familiar with all of this. He says, we are not shocked, we're not even surprised. What he is telling me is, behind the scenes, the Russians have been signaling this for some time that this was their intention.

Behind the scenes, U.S. and Russian officials have been talking for weeks. They call it counterpart to counterpart, State Department to foreign ministry, White House to Kremlin, CIA, Department of Justice to Russian Security Services. And in these private communications, the Russians apparently have been signaling this is the way they are going to go.

What we do not know yet, of course, is whether Russian President Vladimir Putin spoke to President Obama and specifically told him that this would be happening today. We simply do not know that yet. We don't have that information yet.

But not a surprise to U.S. officials. The question now, where does the U.S. relationship go with the Russians? Will there still be that close cooperation on key areas like counterterrorism. And that's what is really potentially at stake here. The president has to decide what he wants to do. The U.S. and the Russians cooperating on the Boston Marathon bombing and looking to cooperate on the upcoming 2014 Olympics.

COSTELLO: Barbara, I'm sorry, I have to interrupt you. We have to go back to that Cleveland courtroom. Ariel Castro now apologizing for his crimes against these three women. Let's listen.

JUDGE MICHAEL J. RUSSO, CUYAHOGA COUNTY COURT: My (INAUDIBLE) hearing statements of Ohio law with respect to sentencing, frankly, concerning the scope and nature of the charges and the victims involved. I don't know that this could have been any more dignified. I think it has been through the cooperation of council, as well as Mr. Castro's plea. It's been a very orderly proceeding to-date and I don't anticipate that the remainder of the sentencing hearing will be any different.

The parties have met and talked with the court and I have (INAUDIBLE) scope of what will be permitted. And particularly here I think the state's concern is that in light of the maximum, consecutive nature of the sentence, anything after count one, that there would be an adequate record so that any reviewing court of anybody would know the foundation. Why --

COSTELLO: OK. We're going to step away, but I was saying that Ariel Castro actually began to apologize to the court. The judge then interrupted him and you hear what the judge is saying now. Lots of technicalities. Ariel Castro will get his chance, right, Page (ph) -

UNIDENTIFIED MALE: Yes.

COSTELLO: To stand up, but at the proper time.

We're going to try to turn that tape for you. We're going to take a break. We're going to turn the tape so you can hear what Ariel Castro had to say for yourself. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Welcome back to NEWSROOM. I'm Carol Costello.

Let's head back to that Cleveland courtroom. Actually let's just take a look inside that courtroom because before the break, I told you that Ariel Castro, the man accused of holding these three women captive for a decade started to apologize. And then the judge interrupted him.

This is the sentencing phase of Ariel Castro's hearing. He's going to be officially sentenced to life in prison plus 1,000 years.

But I want you to listen to what Ariel Castro started to say before the judge interrupted him. Let's listen.

(BEGIN VIDEO CLIP)

ARIEL CASTRO, CONVICTED KIDNAPPER: I would like to apologize to the victims --

UNIDENTIFIED MALE: Yes, you may do that now. This is your -- part of your opportunity to speak.

(END VIDEO CLIP)

COSTELLO: Ok, you could see that he started to apologize. And this is what led up to that apology -- his defense attorneys. Ariel Castro's attorneys are arguing that that the public doesn't -- should not see terrible pictures from inside of his house. Should not hear exactly what happened to these women because it will cause them lasting damage.

The prosecution, on the other hand, the State of Ohio, wants people to hear these things. For what purpose, though Tanya? I'm struggling.

TANYA MILLER, FORMER PROSECUTOR: Well I think what the prosecution is really trying to do here is expose the horrendous nature of these crimes for the world to see. This community, the nation has been riveted by this, how did this happen. What exactly happened and he is also trying to justify this sentence recommendation of life without parole plus 1,000 years.

So it's just making the record and giving it sort of the public airing.

COSTELLO: Ok on the stand right now, Officer Johnson. She was one of the first officers on the scene when the women were rescued. Let's listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: What did you observe when you went into the house at (inaudible)?

OFFICER BARBARA JOHNSON, CLEVELAND POLICE: I heard the call come over for 2207 where Amanda Berry had escaped from that residence. I went to assist the responding officers. Upon my arrival I saw Officer Espada and Officer Tracy running across the street from 2210 to 2207.

I pulled up and I immediately followed them over to the house. I am not sure what transpired before my arrival but as we approached 2207 Officer Espada advised me that Amanda Berry was across the street and she escaped from this house and said that there are others in the house. Unsure if there was a suspect in the house. So we obviously go in very cautiously. We eventually gain entry after several attempts by several different officers. And the first couple officers went in the first floor. Officer Espada and I went upstairs. I had to climb over a little bit of furniture to get up the steps. I remember it was very dark because I didn't take my flashlight with me because it was bright shiny day. I didn't think I need my flashlight in this house but fortunately, I had a flashlight on my firearm. So as we were going up the steps, I remember turning the light on for a couple seconds, just to see where we were going.

As we got to the top of the steps, there is a big, heavy curtain and I remember Officer Espada pushed it over to the side and as we were approaching it, he hollered out several times, "Cleveland Police, Cleveland Police."

As he went up the final step, I held the curtain back and I took a quick look over to the right because he went to the left. And I saw a room with kids' toys. I didn't see anybody inside.

So I then -- he hollered out "Cleveland police" again and then you hear some pitter patter of steps, you know someone running. But stopped and when she -- we shined the flashlight, I remember I kind of shined the flashlight so she could -- whoever it was could see we were the police. We later found out it was Michelle Knight, as she literally launched herself into Officer Espada's arms, he -- legs, arms, just choking him. And she just kept repeating, "You saved us, you saved us."

At that point, you know, I told her "It's ok, honey, you're safe." She then came over to me and jumped into my arms as I'm trying to re- holster my weapon. Her legs were wrapped around me so it's kind of hard to get my weapon back to my holster.

But he said "Is anybody else here?" And it seemed like an eternity, but all of a sudden you see another face peek around the corner of the doorway and it was later Officer Espada asked her and he said "What's your name" and she said "Georgina De Jesus." And she wouldn't come out of the room because she was very reluctant to come out of the room and we said honey it's ok we're here to help you and that's when everybody was happy that we are there to rescue them basically.

UNIDENTIFIED FEMALE: What was it like on the floor of the house where you were when you found Michelle Knight and Georgina de Jesus?

JOHNSON: Like I said it was dark up in the hallway because I did use my flashlight on my weapon to look around. But once Michelle was in my arms, I re-holstered. So the only other light I saw was in the next bedroom which I know being Amanda's bedroom. I don't know if the lights were on in the girls -- Michelle and Gina's room. I'm not sure if they were on at the time because there was so much activity at that point.

UNIDENTIFIED FEMALE: How well were you able to see the two girls, Michelle Knight and Regina De Jesus? JOHNSON: Not until we went into the bedroom. I did remember looking at Gina. It took me a second to really realize it was her. She was a lot thinner and pale, compared to the pictures you've seen for the last ten years where she was a little bit heavier, you know long hair. She had real short hair and she was real thin and pale.

But you could see the resemblance. You knew it was her. But it took just -- you know, the extra second to get a look.

Michelle was so tiny I thought she was a little girl. Until I put her down and got a look at her and realized she was -- she was a grown woman. And it took us a few minutes to figure out that, yes, she was also listed as a missing person. She also is very petite, very little, pale, you know, she was -- she was very, very scared. She had a very difficult time breathing when she was in my arms.

I remember I called for an ambulance right away, because she was -- very -- having a very hard time breathing. So other than --

UNIDENTIFIED FEMALE: You called for an ambulance.

JOHNSON: We did. I called right away for an ambulance.

UNIDENTIFIED FEMALE: Did you stay with the two girls, two women when the ambulance arrived?

JOHNSON: Yes, I stayed with them for the rest of the day, from -- you know, going out to the ambulance. We were probably on-scene in the ambulance, I want to say maybe about 20 minutes before we went to the hospital and I stayed with them at the hospital for a good part of the evening.

UNIDENTIFIED FEMALE: Were you able to get a better look at them outside once they were in the ambulance?

JOHNSON: Yes, oh, yes.

UNIDENTIFIED FEMALE: Can you tell us what were the observations of them once they were in the ambulance?

JOHNSON: They were all -- all three of them were very, like I said, very pale -- still kind of reluctant, not really sure what was happening with this. They didn't know what we were going to do with them. Thin, pale, scared -- you know, they were just -- a lot of talking. They were very, you know, just telling all kinds of things that happened to them.

UNIDENTIFIED FEMALE: And how many individuals are we talking about?

JOHNSON: We are now talking about Amanda, Gina, Michelle, Amanda's daughter and another officer and I, Officer Harrigan and I and then a couple other people would come in and out, letting us know, trying to get details of the vehicle that, you know, the suspect is supposed to be in, what his name is, the description. Because they were broadcasting that so they could get -- get that information out to try and detain him. UNIDENTIFIED FEMALE: What do you recall from when the women were inside the ambulance speaking, some of the details they were giving you about what happened to them?

JOHNSON: Well, they were just -- they were just shutting out a lot of things. And as they were talking, in my head -- I didn't ask a lot of questions, I just let them talk. I do remember at one point looking at Amanda, and asking her "Well, how about when you had your daughter? Didn't you go to the hospital?" and she said "Oh, no." She said, "I had my daughter here at the house." And she said, "Michelle delivered her for me."

And I was just dumbfounded. I couldn't believe that. And they said "Yes, we put a big plastic pool underneath her to help with the clean- up so it wouldn't make such a mess." I remember Michelle saying "Yes, he told me, if that baby died he was going kill me."

UNIDENTIFIED FEMALE: Did you learn of other pregnancies?

JOHNSON: I did ask if anybody else had ever been pregnant. And Michelle said "Oh, I was." And she said, "I was several times and every time he found out I was pregnant he would starve me and he would punch me in the stomach." And Gina at that point was saying "Yes, he would starve her for two weeks and might give her a Pepsi once in a while and then he would hit her until she lost the baby." So they kind of corroborated.

UNIDENTIFIED FEMALE: Did you stay with the women when they went to the hospital?

JOHNSON: Yes, I went with them all the way to the hospital and stayed with them. Every time they had to go to the rest room, I walked with so they knew they weren't alone. They wanted security with them at all times.

UNIDENTIFIED FEMALE: Did you see any change in their demeanor?

JOHNSON: A little bit. I noticed Gina was very -- I would say reserved. I don't know if she was just confused by the whole thing, but a lot of nurses and staff at the hospital would come up and just give her a big hug and say "We have been praying for you, honey." And she just kind of stood there with her arms at her side looking around.

And when they left the room she would look at me and say "who is that?" and I said "Honey, you're going to get a lot of that the next few weeks." So she was just not sure what was going on.

Michelle was still very frightened, very, you know -- like she just kind of held herself close. And Amanda, she had her daughter, so she -- she seemed to be a little more well-rounded as far as trying to protect her daughter, making it seem like everything was ok. You know that she wasn't, but she just kind of had that -- trying to make it look like everything was ok for her daughter.

COSTELLO: All right. We're going to check away. We have to take a break. We'll be back with more. (COMMERCIAL BREAK)

COSTELLO: And good morning, I'm Carol Costello. Thanks for joining me this morning.

Of course, we're continuing to monitor what's happening in Cleveland, Ohio right now.