Return to Transcripts main page

CNN Newsroom

U.S. Closes Embassies Over Terror Threat; Hiring Hits Speed Bump In July; White House Reaction To Jobs Report; Snowden Living With Americans In Russia; Quiet Atlantic Hurricane Season; Bagged Salad May Be Source Of Parasite

Aired August 02, 2013 - 10:00   ET

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

(COMMERCIAL BREAK)

CAROL COSTELLO, CNN ANCHOR: A terror threat in the Middle East. The United States is taking it seriously, ordering some American embassies and consulates to close.

Plus, we thought the U.S. economy was doing better, but today, another bit of bad news on unemployment. We'll tell you how the markets are reacting.

Having children and a career, is that really having it all? Many women are now saying no. NEWSROOM starts now.

Good morning. Thanks so much for being with me. I'm Carol Costello.

We start this morning with a new terror threat targeting Americans. U.S. embassies across the Middle East will close on Sunday. It's a rare and scary move and comes after threats of a possible terrorist attack linked to al Qaeda. We're talking about embassies and consulates in Libya, Egypt, Israel, Saudi Arabia, Iraq and Kuwait. Officials call the threat serious and credible. Here's more from our Pentagon correspondent Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): In an extraordinary move, the U.S. is closing embassies around the world after what one senior U.S. official told CNN was more than the usual chatter about a potential terrorist threat.

MARIE HARF, DEPUTY STATE DEPARTMENT SPOKESPERSON: The department has been apprised of information that out of an abundance of caution and care for our employees and others who may be visiting our installations indicates we should institute these precautionary steps.

STARR: The move comes as the holy days that mark the end of Ramadan approach and nearly a year after the deadly attack on the U.S. mission in Benghazi, Libya. Now the embassy in the capital Tripoli will be closed, other embassies in the Middle East also posted they will be shut. From Egypt when a year ago violent protests threatened the embassy in Cairo to Tel Aviv, Baghdad, Riyadh and Doha, Qatar, all embassies that, quote, "would have been normally open on Sunday are being shutdown." And the closings may expand to include additional days. Another official told CNN the Obama administration is monitoring threats against the American embassy in Yemen. The move came on the same day President Obama met with the president of Yemen who has cracked down on al Qaeda.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: What we've seen is al Qaeda in the Arabian Peninsula or AQAP moved back out of territories that it was controlling. Barbara Starr, CNN, The Pentagon.

(END VIDEOTAPE)

COSTELLO: The other big story we're following this morning, the monthly jobs report. We hit a speed bump in July, just 162,000 jobs added. The unemployment rate now at 7.4 percent and the markets are not too happy with those numbers. The Dow dropped as much as 68 points at the open. So let's get down to the nitty-gritty. I'm joined by CNN business anchor, Christine Romans in New York. What jumped out to you in this report?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: You know, I think the way you described it, a speed bump is the perfect way to look at it, 162,000 jobs created. It's nothing to write home in the month. It is enough, when you look how much we created in the past year to slowly bring down the unemployment rate. To me, what I like to look at, Carol, is the trend. Every month there can be noise in the economic news. I like to look at the trend.

That's the trend for job growth the past year. You want to see it coming in closer to 200,000 more because you want to start eating through the rest of the jobs we lost during the great recession, but it is enough to lower the unemployment rate. Look at the employment rate 7.4 percent. It has been trending down. Part of the reason it dropped to 7.4 percent this month is because of people dropping out of the workforce.

You can see again from the trend, Carol, the trend is moving lower. Last August, the unemployment was 8.1 percent. We've been slowly moving down from that. You've been hearing me talk about quality versus quantity. You can see it again in this jobs report, retail jobs, drinking establishments. We're talking about bartenders, retail store clerks, jobs that are part-time jobs. There was an increase in part-time jobs, part-time jobs that don't have benefits. We're adding thousands and thousands of these kinds of jobs, Carol.

At the same time, we want to see more high paying jobs coming into the economy. We're also looking at this shrinking labor force, the shrinking share of people in the economy who are actually working, who are actually looking for work. It's called a labor participation rate. It's the lowest since 1978. That's a structural problem. We have to get more people, carol, engaged in the labor market.

We have to have an economy and labor market working for everyone. You saw the fast-food protesters in the streets. A lot of people have been sidelined by this labor market. We want to keep moving forward. We're glad to see the progress we are. We need more and better paying jobs.

COSTELLO: All right, Christine Romans, many thanks. I want to talk more about that and take a deeper dive now on today jobs report. So let's bring Alan Krueger. He is the chairman of President Obama's Council on Economic Advisers at the White House this morning. Alan, welcome.

ALAN KRUEGER, PRESIDENT'S COUNCIL ON ECONOMIC ADVISERS: Thank you, Carol.

COSTELLO: I want to start with some messages. It seems like we're getting on the economy. I mean, home prices are up, car sales are up, jobs are edging back, home prices are up, jobs are edging back and Ben Bernanke downgrades our growth to just modest after the Fed meeting. So what's going on here? Is the economy getting better or not?

KRUEGER: I think it's clear the economy is gradually getting better, but we'd like to speed up the pace of the improvement. Over the last three months we added 3.1 million jobs, but needs improvement given how many jobs were lost during the recession.

COSTELLO: It kind of makes you frightened when Ben Bernanke gets to the point he doesn't have to prop things up anymore. What happens after that?

KRUEGER: Well, as a general rule, the administration does not comment on Federal Reserve policy. They're an independent agency. I can tell you the president has very robust agenda to grow the economy from the middle out. That's part of the reason why we're seeing progress because part of his agenda has been enacted and the president is going to keep at it.

He's committed to seeing the middle class expand, to providing more ladders of opportunity into the middle class. That's why he gave a major speech in Illinois and follow-up speeches since then and he will continue to lay out his plans for investing more in infrastructure and for supporting American manufacturing. You'll see him continue to lay out his agenda for expanding the middle class.

COSTELLO: I'm sure -- we all want to expand the middle class, but -- and the president has those ideas, but Congress isn't exactly buying into those ideas. That's a problem. They can't seem to work together. Another problem is stagnant wages. You heard Christine say it. The jobs we added were in the retail sector. Fast-food workers across the country are striking because they don't make enough money to live on. I mean, what can be done about these persist accident problems that aren't aren't-persist accident -- per sis problems that aren't going away?

KRUEGER: You're right about the problems that haven't gone away in two decades and why the president proposed raising the minimum wage in the last "State of the Union address" and why he has his agenda to provide more ladders of opportunity to the middle class, by improving education, providing preschool education so we can start young. But I do want to add one thing, so that we can continue to build on this progress. It's most important that Congress doesn't inflict wounds on the economy. We don't want to have a shutdown of the government that would slow their recovery and unthinkable would be have another over the debt ceiling. So I think most important, we should follow the rule of do no harm. That's really up to congress in the coming months.

COSTELLO: But isn't it in part up to the president, too, to try to get Congress on board, at least a little bit or is that just an impossibility?

KRUEGER: The president has done everything imaginable to reach out to the congress. He has had meetings with different groups within Congress and he'll continue to reach out. Just take the issue of the debt ceiling. The debt ceiling says that Congress -- that the Treasury should pay the bills Congress already rang up. What we saw in the summer of 2011 was an unnecessary fight over the debt ceiling where Congress was literally playing games with defaulting on the full faith and credit of the U.S. currency.

Those are the kinds of manufactured crisis that can slow down a recovery or do much more damage to the U.S. and world economy. That's why I think it's so important that Congress does its job, when it comes back from recess, and raises the debt ceiling without drama.

COSTELLO: I was just going to say I'm sure they're all thinking that on their summer recess. Alan Krueger, thank you so much for joining us this morning. We appreciate.

KRUEGER: Thanks for having me.

COSTELLO: For the first time in more a month, Edward Snowden, woke up somewhere other than the Moscow airport. You can see the NSA leaker in this photo with his back to the camera striking out yesterday on his new life of at least temporary freedom in Russia. CNN's Phil Black spoke with Snowden's Russian attorney.s

(BEGIN VIDEO CLIP)

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT (voice-over): This document grants Snowden permission to live in Russia for one year, which also keep him beyond the reach of the United States for that time. Kucherena describes Snowden's current location as secret and safe. He says he is staying with other Americans who live in Russia. He says Snowden doesn't know him personally, but who reached out via internet and offered to help while he was standing at the airport.

(END VIDEO CLIP)

COSTELLO: Well, Snowden maybe free, but his father say his son is not. Lon Snowden talked with Anderson Cooper. Listen.

(BEGIN VIDEO CLIP)

LON SNOWDEN, EDWARD SNOWDEN'S FATHER: Based on what I have seen thus far I have faith and confidence in those people who have taken my son and are trying to keep him safe and secure. Do I think he will be in a condition he can be safe in public for some time? No. I think it's going to be a long time before my son can safely walk the streets and function as a normal human being. I don't know that will ever happen again.

(END VIDEO CLIP)

COSTELLO: As you know, the White House is furious over Snowden's asylum just weeks before the president is supposed to meet with Vladimir Putin. Joining me now from the White House to talk more about that is Dan Lothian. Good morning, Dan.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Good morning, Carol.

COSTELLO: So we know a big summit is coming up, will the president pull out?

LOTHIAN: Well, you know that is the big question. Not only face to face meeting planned for the president in Moscow, but G20 in St. Petersburg and also in September and the White House is now evaluating. At this point it still remains on the schedule but, of course, we wait to see if the White House will make any changes in reaction to what has happened in Russia. This comes at a very difficult time, tense time between the United States and Russia, while sources had told us that there was some signals that Russia would be making this move.

White House officials are saying that they were not told ahead of time that Snowden would in fact be getting this temporary asylum. All of this is putting pressure on president Obama. A bipartisan course of lawmakers saying this is a slap in the face, an embarrassment for the u.s. the president himself has not responded directly to this, but White House Spokesman Jay Carney reacted this way.

(BEGIN VIDEO CLIP)

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: We are extremely disappointed that the Russian government would take this step, despite our very clear and lawful requests in public and in private to have Mr. Snowden expelled to the United States to face the charges against him. Mr. Snowden is not a whistle blower. He is accused of leaking classified information and charged with three felony counts and he should be returned to the United States as soon as possible, where he will be accorded full due process and protections.

(END VIDEO CLIP)

LOTHIAN: Carney said that U.S. officials will continue to be in contact with their Russian counterparts, expressing this extreme disappointment and continuing to make the case there is legal justification for Snowden to be returned to the U.S. -- Carol.

COSTELLO: All right, Dan Lothian, reporting live from the White House this morning.

Coming up in the NEWSROOM, we've seen plenty of scary storms and tornadoes this year, but thankfully, hurricanes have been in short supply so far. That may have a lot to do with what's happening in the Sahara. We'll tell you why next.

(COMMERCIAL BREAK)

COSTELLO: Checking our top stories at 17 minutes past the hour. A ninth woman has come forward accusing San Diego Mayor Bob Filner of sexual harassment. Our San Diego affiliate KSWB reports Emily Gilbert met the mayor at a fundraiser in December last year and she says the mayor grabbed her tightly and squeezed her behind. Mayor Filner has not commented on this incident though he has apologized to the women he offended. He enters therapy next week.

Pope Francis has a message for Muslims and Christian, respect one another. He says educating the world's young people is the way to do that and personally signs the message as quote, "An expression of esteem and friendship for all Muslims."

Supermarket chains Winn-Dixie and Bi-lo are yanking some ground beef due to the off store shelves because it has been contaminated by E. Coli from a beef packing company earlier this week and no illnesses are reported.

Aaron Hernandez says he cannot wait to prove all the haters wrong. The tight end wrote a letter to a penpal and TMZ obtained that letter and has choice lines like, "all the people who turned on me will feel like crap." that's a quote. Aaron Hernandez has been charged with first-degree murder in the death of his friend, Odin Lloyd.

What a night for the Fenway Faithful. The Boston Red Sox score six runs bottom of the ninth to beat Seattle 8-7. The game wins hit, a blastoff the center field wall. There it comes as the second straight walk-off win for the socks and leading 11 of the season. Unbelievable.

Visitors to the Yellowstone National Park got a fantastic sight this week Stem shot 300 feet into the airs then the Gizers. The world's tallest kept steamboat erupted for the first time in eight years. Without warning steam shot 300 feet into the air. Then the Gueyser, the world's tallest, kept steaming for 24 hours.

Let's talk about weather now, shall we? We're right in the middle of hurricane season. So you might ask, why is it so quiet in the Atlantic? We're happy about that, but still wondering.

INDRA PETERSONS, AMS METEOROLOGIST: I have the answer for you, right? The last storm we remember is Tropical Storm Dorian and all we have left of that are remnants producing heavy rain in Florida. I want to show you what it looks like in a wide view of the Atlantic. This is a good thing but there's a reason for this. Typically we see our hurricanes form with a low here and turn into a hurricane by the time it makes its way in the warm waters.

What is going on, it's called the Saharan air layer. We have all this dust out there really off the coast of Africa. You can see we're trying to form some storms here but it's really inhibiting their growth. That is what's saving us as we looking through this outlook and it will take its time as it makes its way across the Atlantic and save us time for the hurricane season for at least another week.

We have to see what pans off the coast of Africa. That's the reason it's so quiet. That is the Atlantic. Remember, the Atlantic is a different hurricane season than the pacific. We do have Gil still currently a hurricane seeing winds steady at 85 miles per hour, but interestingly enough in front of it, a 20 percent chance for development and behind it, another area that has a chance for development.

Gill still currently a hurricane winds steady at 85 miles an hour, but interestingly enough in front of it, a 20-percent chance for development and Behind it another area that has chance for development.

The good news on this is they're so close. They are competing with each other a little bit and the track here of Gil, itself, the one that is actually currently a hurricane. That one here is now going to slowly start to enter some cooler water so it is expected to dissipate. We're also going to go south of Hawaii, which this time is a plus for them. This time is a plus for them and they get the surf we all know Hawaiians love. That's a plus for them. Good news on both ends, right.

We are going to be watching as far as the weekend is the forecast. We all want to know when are we going to be seeing the rain? A couple short moves going through and which one is the best time to be a couch potato and the best to go outside. We have Indiana being the heavier thunderstorms and then the waive kicking farther to the east and the mid-Atlantic Saturday will be that wet scattered thunderstorm type weather for you. By the time we get through Sunday, this should kick off. Another wave behind it moves through, east of the Dakotas, maybe northern plains, you'll start to get those showers there. I can't complain, if you have one nice day and one day to veg out, Carol, I'm pretty happy.

COSTELLO: I'm ecstatic about that. Thank you, Indra.

Up next in the NEWSROOM, this nasty parasite is making healthy people sick. Health officials around the clock are working to determine how it's spreading. They determined, no, it's not bagged salad after all.

(COMMERCIAL BREAK)

COSTELLO: Bagged salad, tainted with a nasty parasite may be causing hundreds of people to get sick. We're talking maybe 400 people in 16 states across the United States, 113 cases in Texas alone. The disease is called cyclospora and causes numbing problems and worse. Health officials have a lot of question about how it's spreading despite what you've heard. Dr. Sanjay Gupta is here. This is confusing and makes me angry because I thought it was bagged salad and now it's not.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: It's probably bagged salad in many cases but haven't been able to completely identify it in all the cases. I agree with you. This hasn't been very satisfying. Having identified the food outbreaks the process usually goes faster. We're talking June and six weeks is a long time to wait.

COSTELLO: Why is it so difficult to determine what's causing this?

GUPTA: Part of the problem, in this investigation you're counting on people trying to remember what they ate several weeks ago and you probably don't remember what you ate for lunch a couple days ago. That's part of the problem and what do they have in common. They found out in Nebraska and Iowa, that it is probably a mixed bag salad. Mixed is important.

In a restaurant they may have gotten romaine lettuce some place, carrots from somewhere else and red cabbage somewhere else and I find that interesting as well. I find this interesting they don't have to disclose the brand what everybody wants to know, if there's not an imminent public health threat. They say the salad is off the shelves because it was sitting in your refrigerator and shouldn't have been sitting there six weeks.

COSTELLO: Come on.

GUPTA: They say, will this actually cause continued problems, they don't think so.

COSTELLO: As a consumer, even if that brand is out of my refrigerator the past six weeks, I still want to know what brand it is so I don't buy it in the future.

GUPTA: They don't think that brand is no longer contaminated.

COSTELLO: Even so I wonder about it from --

GUPTA: You never want to buy it again? A lot of consumers feel that way. But they want to fix the problems and big brands we still buy today have significant outbreaks associated with them. I think there is accountability for sure. The bigger issue, people have stopped buying bagged salad all together because they don't know which brand it is, probably a larger problem.

COSTELLO: Larger problem, it makes it's easier to eat healthy you buy the bagged salad. You don't have to wash it. You will keep following this, I'm sure. Something else I want to talk about, you have something special coming up this weekend.

GUPTA: I, like you, I was fascinated to watch what was happening with the hearing with Ariel Castro. One of the things that came up, he said he was a sex addict. You've heard this defense before.

COSTELLO: Yes.

GUPTA: I said we will dive into this weekend and find out, people have said is this a mental disorder? Is this even real? What's the science behind it if any? We will dive into this topic. I walked in as a little bit of skeptic that sex addiction is an excuse. It's not in his case obviously but what does it really mean?

COSTELLO: I'm dying to know the answer to that because obviously he was using it as an excuse to commit these horrible crimes.

GUPTA: It's awful and made a lot of people's heads turn. An alcoholic doesn't get away with a dui. A gambler doesn't get away with not foreclosing on their home because they lost all their money. It's not an excuse, but what it is exactly? Is it real?

COSTELLO: I will be tuning in. Thank you so much. Sanjay Gupta, thank you so much.

We see mothers with their children everywhere, but what about those women who have chosen not to have any kids? After the break, the freedom and the pressure that comes with not choosing to be a mother.

(COMMERCIAL BREAK)