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Christie Invited to CPAC; Yellen Sworn in as Head of Fed; Marriott Hotels Hacked; Castaway Claims to Have Drifted at Sea for More Than a Year; Olympic Hotels; Bruno Mars Steals the Show

Aired February 03, 2014 - 12:30   ET

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


MICHAEL HOLMES, CNN CO-ANCHOR: Christie, for his part, he got booed at a Super Bowl event.

But Louisiana Governor Bobby Jindal said he should not step down as head of the Republican Governors' Association.

(BEGIN VIDEO CLIP)

GOVERNOR BOBBY JINDAL (R), LOUISIANA: I don't think he should step down. I think he should stay there.

I think what's more important, though, we've got some great governors in states like Florida, South Carolina, Ohio, Michigan, Pennsylvania, all across the state doing great things.

We've got 36 governors' races. RGA's not about one governor. It's about all 29 of these governors.

(END VIDEO CLIP)

SUZANNE MALVEAUX, CNN CO-ANCHOR: Wolf Blitzer's joining us from Washington. Wolf, good to see you.

Let's talk a little bit about what Christie is doing. He has been invited to CPAC, the Conservative Political Action Conference that snubbed him last year.

So what do we make -- what's the back story behind that invitation, and what do we anticipate is going to come out of that?

WOLF BLITZER, CNN ANCHOR, "THE SITUATION ROOM": Well, I anticipate, barring some major bombshell or some news directly linking him to this traffic closure or some of the other scandals that have now developed, assuming there is no smoking gun, no evidence to contradict his very strong assertions, he'll be very warmly received by these conservatives.

He was snubbed a year ago. He wasn't invited. He has been invited, in part, I suspect, because he has been so attacked by the liberal left.

And he's become much more popular among a lot of conservatives, because he's getting all this criticism from Democrats and a lot of other liberals. So, I think he'll be well-received, assuming there is nothing that contradicts his strong assertions that he had no direct knowledge of what was going on.

HOLMES: Yeah. And to that point, perhaps, the state lawmaker, a Democrat, leading the investigation, he's saying it's too early it to start talking about impeachment.

Is that in that same vein, Wolf, nothing has popped up yet that's concrete?

BLITZER: The only people talking about impeachment are caveating by saying that if, in fact, it is proven that he did lie during that nearly two-hour news conference a few weeks ago, then you could talk about impeachment, then you could talk about some of these other things, but that's a huge "if."

Right now, there's no smoking gun. There's no evidence to back up that assertion. So you can't just go ahead and talk about impeachment.

There was an editorial in one of the major newspapers in New Jersey, the "Star Ledger," on Friday, once this letter from David Wildstein, the former associate of Governor Christie who was on the port authority, who was forced to resign.

There was -- there was no -- there was this editorial suggesting that if, in fact, what Wildstein seemed to be implying were true, then the governor should think about either resigning or being impeached, if you will.

But I think it's very, very premature. Let's see what happens. There are multiple investigations, the most important one by a U.S. attorney in New Jersey, this guy, Paul Fishman.

Let see what they come up with. If they come up with direct evidence that he's a liar, then that's another story, but right now, they don't have it.

MALVEAUX: And Wolf, very briefly here, what do we expect to hear from Christie when he goes on a radio show later today?

BLITZER: It's the first time since that nearly two-hour news conference we're going to hear -- presumably he's going to answer questions about these points. It will be interesting.

It's going to be during the 7:00 p.m. Eastern hour. We'll hear what he has to say, because he has been relatively silent, almost completely silent, in the face of all of these fresh allegations, although he did put out this written statement really going after David Wildstein, these talking points.

His aides put it out, but it was really tough. And when you start, you know, pointing out that maybe Wildstein had some issues when he was 16-years-old in social-studies class in high school, you know you're in trouble, if that's the best you can do.

MALVEAUX: Yeah. Absolutely.

HOLMES: Wolf, good to see you. Thanks so much.

MALVEAUX: Thanks, Wolf.

HOLMES: All right. Now we're going to go -- stay in Washington, in fact.

The next big fight, yet again, here we go again, the debt ceiling, yeah, it's a familiar term.

Come this Friday, unless Congress raises the debt ceiling, the U.S. won't be able to borrow more money to pay its bills. Speaking about "Groundhog Day."

The treasury secretary says the government can function through the end of the month using extraordinary accounting measures.

MALVEAUX: House Republicans, they say they won't raise the limit without conditions.

Democrats and President Obama say they won't negotiate over the issue.

And there is a new person in charge of the U.S. economy. Janet Yellen was sworn in today as the head of the Federal Reserve, following Ben Bernanke's retirement.

Now, Yellen, she is the first woman to take the job in the 100-year history of the Fed.

HOLMES: Her first big challenge will be how to unwind the Fed's stimulus package, of course, without upsetting economic growth.

MALVEAUX: And a lot of jittery traders on Wall Street today, the Dow has been on a steady decline. This is since the beginning of the year, what, down 204 points.

This morning, no exception, you can see it dropping off right at the opening bell there, hovering around -- dropping 206.

HOLMES: It has, you're right, steadily dropping. Earlier, it was around the one-percentage-point mark, now 1.3 percent.

As if market woes weren't enough to worry about today, there is word now one of the largest hotel chains in the country might have been hacked.

<12:35:00>

MALVEAUX: Yeah. I've stayed at a Marriott, but -- yeah.

HOLMES: Check your credit cards.

MALVEAUX: I know.

The problem came to light. This fraud was discovered of credit cards of people who stayed at Marriott Hotels. This is last year in Austin, Chicago, Denver, Los Angeles, Louisville and Tampa.

Our Alison Kosik, she's got more from New York. So, Alison, this is just for last year, right? This is not 2014, correct?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: This is what investigators are thinking at this point, but you never know how far the hackers are getting.

What we are hearing, Suzanne, is that these hackers got ahold of credit card numbers. Hundreds of cards were found to be used at Marriott hotels, that they have fraudulent charges.

Now, this information is coming from a well-known security expert. His name is Brian Krebs, and he found out about this, and he was the one who had exposed Target and Neiman Marcus, those data breeches.

So, now he's coming forward and saying that some Marriott customers are at risk, meaning people who used their credit cards at Marriott restaurants and gift shops.

And here's why he knows this. Because White Lodging was hit by a data breach. And I know you're thinking, what is White Lodging?

White Lodging is a big property management company that manages almost 200 hotels in 21 states, including these Marriott Hotels in those cities that you mentioned.

Now, what White Lodging is saying is that it's investigating, and that it will update the public when it has more information.

Marriott is saying the hack is confined to White Lodging's systems and that the hackers didn't hit Marriott's internal systems.

Suzanne and Michael?

HOLMES: Right. So, I guess what you're saying there is it's not likely they spread to other hotel companies at the moment? It seems to be isolated there?

KOSIK: Well, it's a good question. It very well could spread, because White Lodging actually manages some of the biggest hotel names, like Hilton and Sheraton and Westin.

Now, so far, though, only Marriott's customer information seems to have been stolen, but, you know, we'll probably hear more and more details as this investigation continues.

And this just comes after this wave of hacks that we've heard, at Target, at Neiman Marcus, at Michael's and Yahoo!, all within the past two months.

Interestingly enough, this is getting Congress' attention. Several committees are actually holding hearings this week on Capitol Hill on data theft.

The Department of Justice, Secret Service, they're also looking into it since the Target breach came out, as well.

So, this is getting serious, especially as it becomes more and more widespread.

Suzanne and Michael?

MALVEAUX: And, Alison, what should you do if you stayed at a Marriott or one of these hotels where you might have -- you suspect you're a victim?

KOSIK: I would say go ahead and keep a look -- keep track of your charges on your card.

Many people are just being proactive and just changing out their cards if that's possible.

But at the very least, you should certainly monitor the movements on your cards, the purchases.

HOLMES: All right. Alison, thanks so much.

And in previous ones, too, they say watch out for small charges, because a lot of what these hackers are doing -- yeah, most people don't.

And if you get hit with a $15 one or a $12 one, you're not even going to really notice.

But if they get a million of those, that's a lot of money.

MALVEAUX: It adds up.

HOLMES: Yeah. And the criticism, of course, is we're still using old technology in this country with the old swipe thing. Europe has all gone chips on cards and everything.

MALVEAUX: All right, this next story, this guy used no technology.

HOLMES: Yeah.

MALVEAUX: He claims he lived on turtles and fish while he was adrift at sea for more than a year.

HOLMES: Yeah. But is it true? Well, it might be.

But he looks pretty fit, doesn't he? That was a high-calorie fish-and- bird diet, if you ask me.

MALVEAUX: We'll have that next.

(COMMERCIAL BREAK)

<12:41:40>

MALVEAX: In South Pacific, many unanswered questions today about how this happened, this is a bearded man who claims he drifted in the ocean for more than a year before being rescued.

HOLMES: There he is there.

He's getting medical care now in the Marshall Islands. The story being checked out.

Our senior Latin American affairs editor Rafael Romo joining us now. A strange tale. What do we know about this chap? Because he looks remarkably fit.

MALVEAUX: We think he looks big.

RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR: That's true. That's one of the first things we noticed, that he doesn't really look very emaciated.

He looks in remarkable good condition, but he says he's a survivor of a 13-month odyssey that took him from western Mexico all the way to the Marshall islands.

(BEGIN VIDEOTAPE)

ROMO: He appeared to have difficulty walking as he stepped off the boat that brought him to safety.

But otherwise, the long-bearded man seemed in good condition.

TOM ARMBRUSTER, U.S. AMBASSADOR TO MARSHALL ISLANDS: He has talked about joint pain, several times. I know he'd like a haircut.

But he looks very good. He's sharp. And I'm certainly no medical professional, but I think that he's in much better shape than one would expect after such an ordeal.

ROMO: He calls himself Jose Ivan Alvarengo, and says he's 37-years- old.

Alvarengo told authorities in the Marshall Islands that he was lost at sea for 13 months before watching up on an island in the Pacific nation.

ARMBRUSTER: It sounds like quite an incredible sea story of a man that went out fishing for one day, and expected to return to his port on the west coast of Mexico, but he was blown off by a storm.

ROMO: The castaway told officials he survived by eating fish and turtles he had caught. He would drink rain water and sometimes his own urine.

Authorities in the Marshall Islands are trying to determine if the story is true. The trip from the west coast of Mexico across the Pacific to the Marshall islands is roughly 5,600 miles or 9,000 kilometers of open ocean.

Although, such an amazing ordeal isn't unheard of. Three Mexican fishermen survived a similar journey in 2006. Alvarengo told authorities he and a companion set out for what they thought would be a one-day fishing trip.

ARMBRUSTER: It sounded very much like it was a storm. He talked about a north wind and waves, and being blown off-course, and then losing a companion at sea, as well.

ROMO: His teenage companion, Alvarengo says, died four weeks into their drift.

(END VIDEOTAPE)

ROMO: And we have just received a statement from the Mexican foreign ministry stating that this gentleman took off from the state of Chiapas in Mexico, and it is, indeed, a national of El Salvador.

So, they do not give us any more details, but at least it seems to confirm that this person is who he says he is, at least one piece of crucial information there to add to the whole story.

MALVEAUX: Is there anybody -- this is highly unusual, highly unlikely that someone would be able to survive like this. Is there an exception here?

HOLMES: Yeah.

MALVEAUX: Is there anything in the story that makes it kind of sound like it's realistic?

HOLMES: It has happened.

ROIMO: It's happened. Yeah, there is a previous case, back in 2006 of three Mexican fishermen who essentially traveled or were adrift through the same route and survived.

<12:45:00>

Out of five, three survived basically in the same way, by catching fish and whatever animals they could.

MICHAEL HOMES, CNN ANCHOR: (INAUDIBLE). Yes.

ROMO: So it is not entirely out of the possibility. But then again, he looks in very good shape, as you see there. He had some difficulty walking, but the observation that you made, Suzanne, that the face is not necessarily emaciated -

SUZANNE MALVEAUX, CNN ANCHOR: Yes.

ROMO: Is a very good one, I think.

HOLMES: Yes.

MALVEAUX: Yes.

HOLMES: Big birds. Big fish. Yes, interesting. Keep an eye on that one. I'd love to hear the outcome of that.

All right, Rafi, thanks for that (INAUDIBLE).

MALVEAUX: We're a little suspicious.

HOLMES: We are a little, aren't we?

MALVEAUX: I think we're a little suspicious on this one.

HOLMES: Yes.

MALVEAUX: Moving on. We're got new concerns about Sochi. Some Olympic hotels not even ready for the events. We're just talking about four days away before the start of the Winter Olympics.

HOLMES: Yes.

MALVEAUX: That, up next.

(COMMERCIAL BREAK)

MALVEAUX: Here are some of the stories making news around the world.

In South Africa, a will left by former President Nelson Mandela has now been read publicly. It reveals that he left an estate worth about $4 million, excluding royalties.

HOLMES: Yes, it's going to be split among close family members, former staff as well, and also schools and his political party, the African National Congress. The movement that fought white rule and now runs the country, basically. Now, Nelson Mandela, of course, a global symbol of racial reconciliation.

<12:50:10>

He died at home back in December at the age of 95.

MALVEAUX: And in Libya, the last remnants of chemical weapons from the former regime have reportedly been destroyed. It was done secretly over the past three months. Now, "The New York Times" says that U.S. and Libyan experts used a transportable oven technology to destroy hundreds of bombs and artillery rounds filled with a deadly mustard agent.

HOLMES: Yes. Now American officials had feared that that toxic arsenal could fall into the hands of terrorists. More traditional weapons from Libya have been finding their way to places like Syria. Now, the -- Libya could be a model for much larger things like the chemical weapons disposal in Syria.

MALVEAUX: And the Winter Olympics start this week. Question is whether or not Sochi is ready. I mean, security and accommodations, all of these things are up in the air.

HOLMES: Yes, accommodations. Can you believe it?

MALVEAUX: Can you believe that?

HOLMES: No, exactly, can you believe it?

Several hotels in Sochi still under construction. People actually showed up at some of these hotels and were told you can't stay here yet. The Marriott is not able to process credit cards, for example. Ivan Watson is in Sochi with the details.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: The Russians built all of this, the ski lift, the high-speed train, this entire alpine city within just the last seven years. But now, four days before the opening of the winter games, it's clear that some of this massive development up in the mountains will not be ready in time for the Olympics.

WATSON (voice-over): The Associated Press reports three out of nine hotels reserved for journalists near the alpine sports venues are not yet ready, while even an international hotel operator admits construction is behind schedule.

UNIDENTIFIED MALE: Well, it was slightly delayed. We actually planned to open already last month. Due to some challenges, we actually had here, it's actually now on a short period. It's a short testing (INAUDIBLE) but our team is quite strong, quite trained, so we can handle it from our side.

WATSON: The International Olympic Committee insists everything is OK.

THOMAS BACH, INTERNATIONAL OLYMPIC COMMITTEE: And there are still some issues to be solved, as it is always just before the games. But there - also in this respect, we are in contact with the organizing committee and we hope that the situation will be solved in the next couple of days.

WATSON: Russia and the Olympic Committee are gambling that even if you don't build it in time, the people will come.

Ivan Watson, CNN, Sochi, Russia.

(END VIDEOTAPE)

HOLMES: Well, the Super Bowl wasn't much of a match-up when it came to football, but the halftime show, it was pretty good.

MALVEAUX: Yes, I actually - I loved it.

HOLMES: Yes.

MALVEAUX: Bruno Mars and his band rocking it out. I mean it was amazing. He's had an incredible rise to fame, starting off as the world's smallest Elvis impersonator. We're going to tell you about that.

HOLMES: Did you know? MALVEAUX: That's right.

HOLMES: The business of being Bruno Mars. That's coming up.

(COMMERCIAL BREAK)

<12:56:20>

HOLMES: Who knew he could drum?

MALVEAUX: Yes, that is awesome.

HOLMES: I don't know, does that -- does that make me ignorant? I didn't know he could drum.

MALVEAUX: I mean just imagine what it was like to perform on that stage in front of all those people.

HOLMES: Yes.

MALVEAUX: He stole the show, Bruno Mars, last night at the Super Bowl. And, of course, just the energy and the excitement on that stage. He's just 28 years old. Shot to fame after writing songs for so many other people.

HOLMES: Yes.

HOLMES: He's got a little James Brown action going on over there?

HOLMES: He -- he really was terrific. He started out, believe it or not, I mean a very musical family. Mom and dad. And he started out as an Elvis impersonator, believe it or not. He's come a long way. What did you call him? Adorable. That's what you said.

MALVEAUX: Adorable. I did call him adorable.

Christine Romans takes a look at the business of being Bruno.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Suzanne, Michael, did the Super Bowl put you to sleep? Hopefully you woke up long enough to see the halftime show. Bruno Mars. Turns out Bruno was the highlight of the evening.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): The real Super Bowl winner, Bruno Mars. He took the biggest stage in music in front of more than 100 million viewers and saved an otherwise dull game. So who is this Super Bowl sensation? Born Peter Hernandez to a musical family in Hawaii, he started out as the world's youngest Elvis impersonator.

BRUNO MARS (singing): Take my hand.

ROMANS: He struggled as a performer. He was dropped from Motown Records. Then changed his business plan and began writing and producing songs for other artists. UNIDENTIFIED MALE (singing): Ain't got nothing on you baby.

ROMANS: His big break came in 2010 doing vocals for two songs he helped write, "Nothing on You" and "Billionaire."

UNIDENTIFIED MALE (singing): I want to be a billionaire.

ROMANS: His debut album, a success.

MARS (singing): Girl, you're amazing just the way you are.

ROMANS: And landed Mars two number-one hits.

MARS (singing): (INAUDIBLE) catch a grenade for you.

ROMANS: Album number two reached number one.

MARS (singing): Oh yeah, yeah. Oh yeah, yeah yeah, yeah.

ROMANS: And the accompanying tour brought in more than $46 million so far.

MARS (singing): I should have bought you flowers and held your hand.

ROMANS: All together, Mars has sold 115 million singles worldwide and landed five number one singles faster than any male singer since Elvis.

MARS: You're a beautiful audience.

ROMANS: The 28-year-old was Billboard's artist of the year last year.

MARS: Expect to have some fun with us.

ROMANS: And landed his second Grammy, this one for best pop vocal album of the year, "Unorthodox Jukebox."

Outside the studio, he has invested in Chromatik, a start-up that makes digital sheet music and electronic cigarette maker Njoy, which he uses to kick the habit. The business of being Bruno Mars is, indeed, super.

(END VIDEOTAPE)

ROMANS: Quite a run for Bruno Mars. First the Grammy and now he outshined Peyton Manning and half a billion dollars in Super Bowl ad money.

Suzanne. Michael.

MALVEAUX: All right, thank you. You know what I loved about this?

HOLMES: Outshined Peyton Manning, you're not kidding there.

MALVEAUX: The performance. I mean, he's so hot, he's so hip -

HOLMES: Yes.

MALVEAUX: But traditional, too. I mean the outfits, the moves, I mean really very smooth.

HOLMES: Pop star for - pop star for grown-ups.

MALVEAUX: You know, kind of a little bit like old-school, but fresh.

HOLMES: 5'5", or as you said, 6 foot with the hair.

MALVEAUX: With the hair.

HOLMES: Yes. No, a great performance. He really is - he really is terrific.

MALVEAUX: I love him.

HOLMES: And my daughter would hate the fact that I like him and she likes him, so that would make it very uncool.

MALVEAUX: It says something about him, yes.

HOLMES: Exactly. Great performance by him. Peyton Manning, ah --

MALVEAUX: Not so much.

HOLMES: Not so much.

Thanks for watching AROUND THE WORLD.

MALVEAUX: CNN NEWSROOM starts right now.

<13:00:00>

WOLF BLITZER: Right now, Chris Christie fights on, denying new charges he was in on what they're now calling bridge-gate.