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New Day

Boehner: I Won't Allow Default; Tropical Storm Karen; Pope Francis Goes to Assisi; Twitter Going Public; Playoffs Heat Up

Aired October 04, 2013 - 06:30   ET

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

CHRIS CUOMO, CNN ANCHOR: Don't drive on my lawn in America. That's crazy.

MICHAELA PEREIRA, CNN ANCHOR: Crazy talk.

KATE BOLDUAN, CNN ANCHOR: All right. Let's move now to our political gut check.

Strong statement coming from House Speaker John Boehner, in private, he told Republican lawmakers that when it comes to the debt ceiling, the nation will not default. So, are we about to see a break in the tense negotiations or lack thereof in Washington?

Let's go to CNN's chief national correspondent John King for more on this.

I'm sure Republicans will say John Boehner has always said this, we're not going to default, we can't default on our debts. This is a shift in strategy. When he says if I have to, I'll raise the debt ceiling with Democratic votes if needed.

What's going on behind the scenes, do you think?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: His top aides are saying there's no dramatic shift here. But the speaker's meeting in small groups with rank-in-file lawmakers, he knows, just like that postal woman should have known, there's a camera pointed at you anywhere, John Boehner knows when he goes into a meeting like that it's going to leak out.

What is he doing? He's sending an early signal that, ladies and gentlemen of the Republican caucus, we are not going to be part of defaulting. His obit is already going to read he was the leader of a bizarre three-ring circus on Capitol Hill, Kate. He doesn't want to say he was the speaker when the government for the first time defaulted.

There's still a huge question of how you get there, though, because the speaker will continue to insist no raising the debt ceiling without getting something from the administration -- on spending cuts, on spending levels, on reforms in the most expensive government programs. And the president, of course, is on the record saying I won't negotiate. You can reconcile those two positions by doing it in a couple of sequenced steps.

But it's an optimistic statement from the speaker that we won't default, but getting from "A" to the finish line, still complicated.

BOLDUAN: Very true. I mean, are we -- do you think we are talking about a grand bargain again? Because I was the first to say when anyone brought up that idea, that will never happen this time around. Things have gone from bad to worse in terms of relations between these two parties.

KING: Sometimes at the bleakest moment is when something can be pulled -- a rabbit you don't of a hat if you will. However, when you talk to people in both parties and top aides close to all of the people involved, from the White House to the Republicans and the Democrats on Capitol Hill, most just don't see an environment because of the distrust, because of the glooming political calendar of 2014 for a big grand bargain that does Medicare, Social Security, tax reform, other entitlements, other spending cuts in the government.

Is there a possibility of a smaller bargain that gets some of the things Republicans want in terms of savings in Medicare and Social Security, some other spending cuts? That is possible in this separate budget agreements. The question is can you get the government re- opened, raise the debt ceiling and then do those things? Will the Republicans trust the Democrats to do that? Or because of the suspicions will you have the revolt?

BOLDUAN: Yes, there's the problem, trust. That's really what it is. That's what it comes down to.

A lot of the fight has been about strategy and many people will say that's their frustration with Washington, they're more concerned about the political win rather than the ramifications and the ripple effect on the economy and the country. But it is a -- the reality is it is about strategy.

There's a moment caught on a hot mike between Mitch McConnell and Rand Paul talking about just that, strategy. Let's listen to that again.

(BEGIN VIDEO CLIP)

SEN. RAND PAUL (R), KENTUCKY: Do you, do you have a second?

SEN. MITCH MCCONNELL (R-KY), MINORITY LEADER: I'm all wired up here.

PAUL: I just did CNN. I just go over and over again. "We're willing to compromise. We're willing to negotiate." I don't think they poll- tested we won't negotiate. I think it's awful for them to say that over and over again.

MCCONNELL: Yes, I do too. And I just came back from that two-hour meeting with him and that was, that was basically the same view privately as it was publicly.

PAUL: I think if we keep saying we wanted to defund it, we fought for that, now we're willing compromise on this, I think they can't -- we, I think, I know we don't want to be here, but we're going to win this, I think.

(END VIDEO CLIP)

BOLDUAN: Is this one of the few times you catch a refreshingly honest moment?

KING: There are a couple of things about this, several things about this that are fascinating. Number one is Mitch McConnell warns Rand Paul I'm all miked up here. He knows he's all miked up here and he knows the risks involved.

Then, what does Rand Paul say? I know we don't want to be here. He's understanding the Republicans -- he thinks the Republicans are going to get blamed for a government shutdown.

But what's even more fascinating, Kate, is what do we talk about with John Boehner? He has a conservative revolt of these most conservative members. A lot of people are afraid of them because if they don't vote with them, they'll get a primary challenge.

BOLDUAN: Yes.

KING: Rand Paul is the living, breathing example of that. Mitch McConnell had a different candidate in that Kentucky Senate race. His hand picked favorite and Rand Paul beat him. Mitch McConnell and Rand Paul are two peas that do not belong in the same pod.

And yet, they have this unlikely alliance, it's helping Mitch McConnell in his own reelection campaign, and that they've become partners in legislating on Capitol Hill. That relationship that has turned into a functional partnership is stunning.

BOLDUAN: It is. Interesting. Fascinating all around. Thanks, John. Great to see you.

KING: Thank you.

BOLDUAN: Have a good weekend.

CUOMO: I can't get enough of it.

BOLDUAN: That moment?

CUOMO: I can't get enough of it.

BOLDUAN: It's nice to have candor.

CUOMO: The word metaphor comes to mind. I'm going to Google it during the break, I'm going to figure out what it means because I know that's what it was. It was a metaphor.

Coming up on NEW DAY: The leader of the Catholic Church talking about the man who inspired him, that would be St. Francis of Assisi and that's where St. Francis is going. That's where the saint is from. And the pope seems to be following his namesakes' lead, meaning more changes maybe ahead for the Vatican. We'll tell what.

BOLDUAN: And how much would you pay for a piece of twitter? Tweet me what you think. Your company is planning its big IPO and it wants to raise a billion dollars but is Twitter worth that much? All the details.

CUOMO: If you can control the nasty --

(COMMERCIAL BREAK)

BOLDUAN: Welcome back to NEW DAY.

Indra Petersons is in Pensacola, Florida, this morning, keeping an eye on the approaching tropical storm there.

How's it looking right now, Indra?

INDRA PETERSONS, AMS METEOROLOGIST: Yes, you know, Kate, right now, things are generally calm. We're just seeing a little bit of rain here and there, some gusty wind. It's really not until later today that we are going to start to feel the effects of Karen, which is about 100 miles off the coast of Louisiana.

It has weakened, the latest issue from the National Hurricane Center, about 60 miles per hour. But it does have a chance to strengthen as it continues to make its way closer and eventually makes its way, turning a little bit more towards the panhandle of Florida.

So, we do currently have a hurricane watch here in the region. As far as rain, anywhere from 4 to 8 inches is going to be possible, even 12 inches of rain. Keep in mind, they've already had so much rain here all season long. So, that is going to be a big concern for flooding and also for trees being uprooted.

You know, here's the thing, this is not the only story. We have a huge system that's been hanging out in the middle of the country. I mean, dumping snow over Wyoming, even portions of Colorado. Blizzard conditions, yes, blizzard conditions are expected today as it makes its way in through South Dakota. We're talking 60 to 70 mile per hour winds, an additional foot of snow is likely there with visibility less than a quarter mile. That's going to be a big concern.

Now picture this. You have that huge cold system and it starts to make its way eastward across the plains. What do you have? You have a threat for tornadoes today, a potential outbreak out there. We're going to be talking anywhere from Minnesota down through Oklahoma with even a moderate risk in through Iowa.

So, a lot really to take into consideration today, Chris.

CUOMO: All right, Indra, keep us on track with what's going on. We'll be back to you in a little bit.

I want to talk to you know about what's going on with the pope. Very interesting, when he got selected, he came out and he said, I'm taking the name of Francis. People weren't sure if he meant Francis who started the order of the Jesuits, which is what he is, a Jesuit. Or was it Francis of Assisi. And he said, I take the name after el poverino, the poor one, because of what Assisi meant to the Catholic Church about being about the poor.

And today, the pope is making that point again. He's traveling to the birth place of his namesake, Saint Francis of Assisi, the saint known for renouncing wealth, for embracing poverty, the basis of what the Catholic Church was once all about. He's set to make a major speech, the pope, part of an effort to redefine the largest Christian denomination in the world.

Ben Wedeman is in Rome and he's going to watch what happens today.

Ben, pretty exciting for people who watch the Vatican.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Indeed it is. In fact, one Vatican observer is saying this visit to Assisi is part of the pope's fall offensive to shake up the church, rearrange its priorities and reawaken its followers.

(BEGIN VIDEOTAPE)

WEDEMAN (voice-over): For a man with a message, his every move is full of symbolism. And Pope Francis's pastoral visit to the hill top town of Assisi is indeed long on meaning.

It's the birth place of Saint Francis who some 800 years ago abandoned the life of wealth and privilege to serve the poor. Since becoming pope, Francis has turned his back on the trappings of power, choosing to live in the modest Vatican residence, the Santa Marta, preferring to use a secondhand car to drive around the Vatican.

He stressed repeatedly he wants the church to be a poor church serving the poor. In a recent interview published in an Italian newspaper, Francis condemned church leaders as narcissistic.

This week, he held three days of closed door meetings with eight cardinals, where they discussed ways to reform the church, its finances, its bureaucracy, its very nature.

Leading some observers to suggest Pope Francis may be more of a revolutionary than a reformer.

(END VIDEOTAPE)

WEDEMAN: And already, this no-frills pope has blasted worldly obsessions with money, vanity and greed, revolutionary messages indeed.

Back to you, Kate.

BOLDUAN: All right, thanks so much, Ben. Let's go around the world now starting in Italy. A tragic accident, a boat sinking with hundreds on board.

Matthew Chance has the latest.

(BEGIN VIDEO CLIP) MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: But it's the scene of utter tragedy here on Lampedusa, the Italian coast guard confirmed they've pulled more than 100 bodies out of the water so far, all of them African immigrants, 155 people have been confirmed as rescued from the stricken vessel out there, mostly from the countries of Eritrea and Somalia.

But the focus is still on the recovery effort because there is still as many as 200 people unaccounted for. What is emerging as one of the worst incidents of migrants dying at sea in recent years.

Back to you, Kate.

(END VIDEO CLIP)

BOLDUAN: All right. Matthew, thank you so much.

And to China where they're dealing with a strange problem, a problem with killer hornets descending on unsuspecting people. Paula Newton is here with more.

(BEGIN VIDEO CLIP)

PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: It's been a terrifying situation in China with 42 people killed, more than 1,500 others injured. You're talking about things that actually look like bullet holes. The venom attacks the red blood cells and that can lead to kidney failure.

Why is this happening? A lot of it has to do with urbanization, the weather has been warmer. That hasn't helped. The government is saying to people, look, wear long sleeves and be vigilant when those hornets are around. Unfortunately, they've been attacking even children when they're playing in playgrounds or when they're at school.

Kate, back to you.

(END VIDEO CLIP)

BOLDUAN: Wow, that is terrifying. It makes you itch even watching that.

CUOMO: Itch? Did you see the holes in the guy's arm?

BOLDUAN: I did.

CUOMO: That's no joke.

BOLDUAN: I know.

CUOMO: Coming up on NEW DAY: all three of us use it all the time. But is Twitter really worth a billion dollars? The company is detailing its plans for a big IPO. We'll go through it and tell you whether or not you should invest. PEREIRA: And, you know, one might think water is a prerequisite for kayaking. Not for this guy. One man's dry-ish kayaking adventure is a must-see moment.

CUOMO: He's flying.

(COMMERCIAL BREAK)

PEREIRA: You may want to get that. Welcome back to NEW DAY. $1 billion? Twitter revealing that's how much it plans to raise in its initial public offering, but here's the big question. Could it be a repeat of a disappointing Facebook opening of last year? Christine Romans is here, breaking it all down for us. Big day yesterday, also Twitter announcing it's still unprofitable.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes, it's really unprofitable. Look, we really got to look under the hood of this company yesterday with its first filing. It's probably go to go public by November 9th, we think. A billion dollars is what it wants to raise. It wants to expand. So, it's going to offer shares the public, so you guys can all invest in it if you want.

But it's losing a ton of money, #losingmoney. It's losing tens of millions of dollars. And next year, it's forecast to lose even more. Why? It's spending money big to grow, but it's not yet making enough money from ads to be profitable. So, they want to get -- sell shares to the public so they can keep growing and try to make money.

BOLDUAN: So, how do they grow as a company? Twitter does something very specific. I'm sure that's the question that people have.

ROMANS: It has 218 million active users. They need to grow that user base. They need to make more money from that user base without turning you away, right? I mean, right now, you can -- an advertiser can buy something that's trending. They can put who -- they can sponsor ads to make who to follow, tell you who to follow, then you go as an advertisement for something.

They've got to do that, make money, but not turn us away who use Twitter and we say, oh, this is an advertising tool, we're not interested.

CUOMO: My question is about, how do they avoid not being another Facebook in terms of their IPO? We do know that they have the mobile. Everybody looks at Twitter on their mobile device right now. That was the drawback for Facebook.

That's why their stock popped once they went mobile, but, this 218, I think that number may be fugazi (ph), because when you do a look at who your followers are, there's a percentage of them that are phantom accounts, spam accounts, dupe account. So, how do they avoid not being another Facebook IPO that tanks after opening?

ROMANS: They do have more action in mobile space than Facebook did when they went public. So, that's a very good point. They've got to grow that user base, not turn people away and at the same time, in terms of raising the money, are they a one-trick pony, right? I mean, what are they going to grow and do next?

BOLDUAN: Right.

ROMANS: I mean, that --

BOLDUAN: Facebook seems to have more of an area for growth. Just what Facebook kind of offers.

ROMANS: Instagram for a billion dollars. It was trying to find strategic investments and the like. But at 218 million users, how are they going to grow and how are they going to make money? Now, there's a lot of excitement around the stock. There's a lot of excitement around tech stocks in general. And they've done very well this year.

I mean, you look at -- Facebook is up 85 percent this year. Once you can show that you can make money in the mobile space or you got action in the mobile space, boom, Wall Street likes it.

PEREIRA: It's hard to reckon with, because you think about the fact that the Twitter brand is gigantic. Everybody knows it. We talk about tweet as part of our culture. It's so incredibly recognizable, but yet, they still can't turn a profit. Like, it almost doesn't stand to reason.

ROMANS: Oh you know, they're concerned about the spammers, they're also concerned about being shut down in some countries that are rapidly growing by censors. You know, so there's a lot of issues --

CUOMO: Competition.

ROMANS: Absolutely.

CUOMO: When you have such a simple business, you know, someone else, become into space. Remember, you don't pay for it. You have to remember, the reason it's run in the loss is you don't pay for anything. It's all about giving away the ad space. I have an idea for them, though.

ROMANS: What?

CUOMO: They need a make sense button. That when you click on this button, the only people that you encounter actually make sense.

(LAUGHTER)

CUOMO: You get rid of like the trolls and just the hate parade that goes on.

ROMANS: You hate the --

(CROSSTALK)

(LAUGHTER)

CUOMO: Free of charge.

BOLDUAN: And there we go.

(LAUGHTER)

PEREIRA: Thank you so much, Christine. Be sure to catch Christine on "Your Money" this weekend, Saturday at 9:30 a.m. and 2:00 p.m. Sunday at 3:00. Always a delight.

Hey, you want to see the "Must-See Moment" with us, Christine?

ROMANS: Yes.

PEREIRA: It's a good one.

(BEGIN VIDEOTAPE)

PEREIRA (voice-over): It's from Canada. This is also going to be filed under do not try this at home. Kayaking daredevil, Ben Marsh, showing us a rather an orthodox entry into the water, maneuvering then at concrete ditch in his kayak, reaching speeds of up to 35 miles an hour, screaming his lungs out before slashing into British Columbia's (ph) house near Vancouver.

Of course, camera strapped to his head to make sure it was all caught on tape. But wait, wait, wait. You see the end in sight. Here it comes. The entry into the water is probably my favorite thing.

BOLDUAN (voice-over): Here he goes.

PEREIRA: It's like a kayak luge.

(CROSSTALK)

PEREIRA: He held it. He nailed his landing. He's pretty phenomenal. We know that he just tore up the bottom of that kayak.

(CROSSTALK)

BOLDUAN: He knew that going in. There's a really --

CUOMO (voice-over): Wow! Look at it.

BOLDUAN: -- that done something like this and I love that.

(CROSSTALK)

(END VIDEOTAPE)

CUOMO (on-camera): How awesome is that guy and Canada? I'll give it to you. And go-pro cameras.

(CROSSTALK)

BOLDUAN (on-camera): Imagine the road burn if you fall.

(LAUGHTER)

(CROSSTALK)

ROMANS: I keep saying that would hurt.

BOLDUAN: With that thought in mind, let's go to break.

(LAUGHTER)

BOLDUAN: Coming up next on NEW DAY" we are covering the big story out of Washington. There are two big stories out of Washington. First off, the woman who drove into the White House barriers causing a shootout and police chase on Capitol Hill, answering some questions. We're trying to get some questions now today on who is Miriam Carey (ph). We'll be digging into that for you.

CUOMO (on-camera): And, the other cause of chaos, the shutdown. Day four, no solution in sight, but there could be some bright news about the debt ceiling. A potential compromise, very important. Stay with us. We'll bring you the details.

(COMMERCIAL BREAK)

CUOMO: Pitching, very important in the playoffs. You know, the baseball playoffs are going on. The Dodgers and Pirates are a great example of this, but in very different ways. Let's bring in Andy Scholes. He has the highlights in this morning's "Bleacher Report." Happy Friday, my brother.

ANDY SCHOLES, BLEACHER REPORT: Happy Friday to you, too, Chris. Well, you know, in just the first two games of the divisional series, we've seen how your starter can win or lose the game all on his own. Dodgers Ace, Clayton Kershaw, he was dominant in game one against the Braves last night. The big lefty struck out 12 as L.A. beat Atlanta 6-1.

The Pirates, meanwhile, they were crushed by the Cardinals. A.J. Burnett allowed seven runs in just two innings. St. Louis won that game, 9-1. The playoffs continue today on TBS with a triple header, Rays/Red Sox. They get things going at 3:00 eastern.

All right. Trending right now on BleacherReport.com is a great story about five-year-old Zack Dasen (ph). Zach battling leukemia. And the Northern Illinois football team invited him to come to a practice. Now, Zach's favorite player is Packers linebacker, Clay Matthews. So, the Huskies set up a play for Zach to sack (ph) quarterback Jordan Lynch and look at that go.

Gets in the backfield, knocks down the quarterback for the sack (ph). Definitely an awesome moment for him. And afterwards, guys, check it out. The team, they pick up Zach to celebrate. Definitely the good stuff there.

BOLDUAN: That is the good stuff. Look at him, look at him!

CUOMO: Led with his head. It's a cheap shot. I respect it.

(LAUGHTER) BOLDUAN: Fifteen-yard penalty. All right. Thanks, Andy. That was a good one to end on this Friday. Thank you so much. All right.

CUOMO: Good stuff.

BOLDUAN: That is very good stuff. We're very close to the top of the hour, so let's get to our top news.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: I heard a series of wild pops like a gun going off.

CUOMO: Breaking overnight. New details on the woman who sped towards the Capitol. The chase and shootout all caught on video. Why would she do it, especially with her daughter still in the car?

BOLDUAN: Direct hit. Tropical storm Karen barreling towards the Gulf Coast at this hour. It could become a hurricane soon. The region already soaked this season. We're live on the coast.

PEREIRA (on-camera): Shutdown breakthrough. John Boehner making a game-changing statement on the debt ceiling but still with no end in sight for the shutdown stalemate.

CUOMO: Your NEW DAY starts right now.

ANNOUNCER: What you need to know --

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: -- put them on the floor and show it to the American people, are you for a shutdown or not?

ANNOUNCER: What you just have to see --

UNIDENTIFIED FEMALE: She doesn't know the difference or any things out of the ordinary. It's like a new toy for her. And as long as she's happy, I'm happy.

ANNOUNCER: This is NEW DAY with Chris Cuomo, Kate Bolduan, And Michaela Pereira.

(END VIDEOTAPE)

CUOMO: Good morning. Welcome back to NEW DAY. TGIF on this October 4th, seven o'clock in the east. New this hour, we're going to tell you what we've learned about the woman who turned the nation's capital upside down less than 24 hours ago. We know now who she was and we're trying to figure out why she caused this chaos.

Plus, what else do we have?

BOLDUAN: It's a very big day for Pope Francis. He's in the Italian town where his name sake, St. Francis lived and died. What's he doing there? Some say he's trying to live up to the name he chose. PEREIRA: It is a beautiful story behind some video recorded from -- wrong video. I'm sorry. This is really shocking video from a state trooper's car, frightening, frightening moments captured on the side of the road. We'll show this to you, tell you how it all unfolded, coming up.