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NEW DAY

What Happened to Flight 370?; Crackdown on Google Glass; How To Spend Your Tax Refund

Aired March 11, 2014 - 06:30   ET

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


(COMMERCIAL BREAK)

MICHAELA PEREIRA, CNN ANCHOR: Half past the hour.

Let's begin with some breaking news this morning concerning the disappearance of Malaysia Airlines flight 370.

We are now learning more about the two passengers who boarded that flight with stolen passports. One of them is a 19-year-old Iranian national believed to be immigrating to Europe. The other is also Iranian. Both men traveled from Doha to Kuala Lumpur using Iranian passports, then boarded the ill-fated flight. Now, authorities do not believe either man have any links to terrorism.

Also new this morning, China is now deploying 10 high resolution satellites to aid with the widening air and sea search to find that missing plane.

Ousted Ukrainian President Viktor Yanukovych says he is still the legitimate president. He says any vote to elect the new president is illegal and accuses the U.S. of unlawfully supporting an unelected government. The U.S. is among 10 countries meeting in London to discuss more sanctions against Russia. Secretary of State John Kerry has canceled a meeting meanwhile with Vladimir Putin.

General Motors is under investigation in connection with faulty ignition switches linked to 13 deaths. The hearings will investigate why the automaker and federal regulators had trouble recognizing that defect.

Last month, GM announced a recall of over 1.6 million cars. The automaker was first alerted to the problem back in 2004 but declined to issue fixes.

A rock climber is recovering from serious injuries after a dramatic cliff rescue in North Carolina. Look at this the 23-year-old man fell about 20 or 40 feet while rappelling down the side of a mountain. National Guardsmen or rescue crews had to battle wind, but they were able to air lift him into a Black Hawk helicopter and then met with a medical chopper nearby.

Startling surveillance video to show you now of a taxi smashing into a school bus on a busy Brooklyn street. Nine people were hurt, including several children with special needs.

(BEGIN VIDEOTAPE)

PEREIRA (voice-over): Moment of impact, a terrifying collision caught on tape. Watch as this school bus full of children crashes into a taxi in Brooklyn, a surveillance camera capturing the force of the impact, the cab slamming into a light pole, the bus flipping over, injuring six children inside.

UNIDENTIFIED MALE: They were completely historical. I mean, they were screaming, yelling. They had no idea really what was going on or how they were going to get out of that.

PEREIRA: Witnesses say they rushed to pull the students who are between the ages of 10 and 12 out of that wreck.

UNIDENTIFIED MALE: I just immediately jumped and started getting people out as fast as possible because I saw blood.

PEREIRA: The crash injured nine people, six special needs students, and three adults were transported to area hospitals with minor injuries. The cab driver is in critical condition. Officials are still investigating the cause of the crash.

(END VIDEOTAPE)

PEREIRA: A lot of people on the scene rushed to help those kids when they saw it was a school bus. And people on the ground were saying that a lot of accidents happen at that corner, people speeding through there. We don't know if --

BROOKE BALDWIN, CNN ANCHOR: We don't know what happened.

PEREIRA: We don't know what happened.

But, thankfully, those kids are going to be OK. Scary moment for sure.

BALDWIN: Scary, scary.

CHRIS CUOMO, CNN ANCHOR: One of the good reasons to have those cameras up there --

PEREIRA: Yes.

CUOMO: To help create. Both of those drivers are high responsibility, school bus driver, tax driver. So, they're going to have to figure that out.

Mick, thanks for telling that story.

BALDWIN: Thanks, Michaela.

CUOMO: Let's get back now to our top story this morning. The missing Malaysian Airlines flight. How does a 600,000-pound jetliner that's over 200 feet long just vanish without a trace? Let's turn to CNN aviation correspondent Rene Marsh for some possible answers -- Rene.

RENE MARSH, CNN AVIATION CORRESPONDENT: Well, Chris, three words: aviate, navigate and communicate. That's the rule for pilots, and in that order. But it appears whatever happened, it was so fast, the pilots never got to that last step, communication.

So, until searchers find the plane's data recorders, all possible theories are on the table.

(BEGIN VIDEO CLIP)

MARSH (voice-over): There's no shortage of explanations on what could have caused Malaysia Airlines Flight 370 to vanish.

STEVE WALLACE, FORMER ACCIDENT INVESTIGATOR: This early in the investigation, you just have to say that absolutely everything is on the table.

MARSH: One possibility, pilot error. The last jetliner to go missing was Air France Flight 447 in 2009. It took two days before they found any debris and two years to locate the flight recorders.

The cause of this crash -- the pilot didn't react, another possibility when ice built on its speed center.

Another possibility, a mechanical problem. TWA flight 800 went down off the coast of Long Island in 1995.

WALLACE: The general area of maintenance is a valid area -- again, everything's on the table, including that.

MARSH: This Japan Airlines 747 crashed after its tail broke off in 1985. A faulty repair seven years earlier was to blame.

This Malaysian plane had one past accident. In 2012, its wing clipped another aircraft. It was repaired.

And, of course, terrorism can't be ruled out yet.

JIM HALL, FORMER NTSB CHAIRMAN: This has got to be a parallel investigation both looking at whether it's an accident or a possible criminal act.

MARSH: Investigators will check for evidence of bombs. Or the 1994 attack on a Philippine Airline 747, one passenger was killed. It was part of a test run for an attack on 12 U.S. airliners that eventually was foiled.

(END VIDEOTAPE)

MARSH: Now, officials say there's no indication at this point of terrorism, but it cannot completely be ruled out either. Now, until those data recorders are found, one can only speculate. The recorders, they are equipped with locator beacon that activate when they hit water sending off an ultrasonic pulse one time per second. You cannot hear it with a human ear, but sonar equipment can detect it. Now, the locator beacons, they can work in water as deep as (AUDIO GAP) feet, but only last for about 30 days.

That said, we will find out what caused the crash. Investigators have an excellent track record of solving transportation crashes -- Brooke.

BALDWIN: All right. Rene, thank you.

Let's talk about this a little further. Joining me now is the former director of security at Tel Aviv's Ben Gurion Airport, Rafi Ron.

Mr. Ron, good morning.

RAFI RON, FORMER DIRECTOR OF SECURITY, TEL AVIV'S BEN GURION AIRPORT: Good morning.

BALDWIN: I want to begin with something you said that investigators need to focus on, that being the stolen passports. We've now got this new information, the fact that one belonged to the 19-year-old Iranian national, wanting to get into Europe. We know the other belonged to an Iranian as well. Officials are saying no link to terrorism.

Knowing that now, what does your gut tell you?

RON: Well, I think that -- there is nothing proved very substantially, our ability to make an intelligent assumption as to whether this is an act of terrorism or not because the fact that we have an Iranian involvement here is obviously may be interpreted by some people as an indication to a terrorist connection.

But at the same time, we have to remember that a lot of the Iranian dissidents out there are being persecuted by their regime. And the idea of such a person using a false identity to get on a flight to go to Europe to seek asylum makes sense. It happened in the past many times.

And at this point in time, I think that it is a very premature to --

BALDWIN: OK.

RON: -- describe this as an act of terrorism.

BALDWIN: Let me move fast that and ask you about the crew. What more would you like to know about the crew on board this 777?

RON: Well, the issue of the crew is something that they obviously -- a result of our past experience, the most evident case was Egypt Air case, where the first officer actually flew the aircraft into the ground. And that is something that since then has left its mark. There's very little that one can do about it. And that explains a lot of the question marks of why we did not get any indication or any communication about the problems on board.

But still, I would say that at this point in time, it is -- it's kind of a very far assumption. BALDWIN: OK. Rafi Ron, thank you so much for joining us this morning. Your expertise, appreciate it very much.

RON: You're welcome.

BALDWIN: Chris, over to you.

CUOMO: All right. Brooke, coming up on NEW DAY, Google Glass is causing an uproar one of the nation's most high tech cities. Why are some businesses in San Francisco banning the device? We'll tell you.

And we can't wait to get our hands on our tax refunds. Of course, we can't wait. But, what do you do once you get it? What do you do? You spend it, save it? We have a report coming up that will help you decide later this hour.

(COMMERCIAL BREAK)

PEREIRA: Check that out.

BALDWIN: That is awesome.

PEREIRA: That might be illegal.

CUOMO: Hope it doesn't start a fight.

(LAUGHTER)

BALDWIN: Welcome back.

Nice move, guys.

There is growing crack down here on Google Glass. I don't care those are Google Glasses. But we're talking about the high tech computers mounted in these eye grass frames.

So, now, some in San Francisco, they're mounting this campaign against them and just wearing the glasses could be asking for trouble.

CNN's Dan Simon found that out firsthand.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT (voice-over): I'm conducting a social experiment, exploring the streets of San Francisco with a pair of Google Glass, the $1,500 wearable computer with a built-in camera.

UNIDENTIFIED FEMALE: It's Google Glass --

(CROSSTALK)

SIMON (on camera): It is.

(voice-over): Most people are just curious, but this guy is not happy to see me.

UNIDENTIFIED MALE: Google Glasses are about to go in the garbage.

SIMON (on camera): Why?

UNIDENTIFIED MALE: They're (EXPLETIVE DELETED) interrupting the world. Privacy. I understand that you can record it.

SIMON (voice-over): The exchange happened in the city's famed Haight Ashbury District, the same area where Sarah Slocum ran into some trouble all because she says she was wearing Google Glass.

This is inside a bar called Molotovs. Slocum says she turned on the camera when things got nasty.

UNIDENTIFIED MALE: Get out of here.

SARAH SLOCUM, ATTACKED FOR GOOGLE GLASS: I never experienced any sort of hatred or animosity for merely wearing Google glass. And it's completely took me off guard.

SIMON: The late-night confrontation apparently part of an angry backlash against Silicon Valley employees who some say are driving up red prices in an already expensive market.

UNIDENTIFIED FEMALE: You're killing the city. (EXPLETIVE DELETED)

UNIDENTIFIED FEMALE: Don't touch me. Don't touch me. I'm going to (EXPLETIVE DELETED) sue you.

SLOCUM: She comes up to me and she says, "You're killing the city." At that point, you know, I'm further taken back because, you know, I'm not some big marshmallow man stomping around San Francisco.

SIMON: In fact, Slocum doesn't even work for a technology company. Not everyone, though, was sympathetic. Several San Francisco bars including Molotov's (ph) have now banned the use of Google glass because of concerns about privacy.

When you see somebody wearing these glasses, what do you think?

MEGAN GILLESIE, GOOGLE GLASS CRITIC: It is a symbol of tech elite. It is a symbol of people being able to record you without your consent.

SIMON: But Sarah Slocum says it's an unfair generalization and wants people to know that just because she's wearing glass doesn't mean the camera is on.

SLOCUM: I have no desire to go around and film strangers. I have better things to do with my time.

SIMON: Though, in this case, she was recording. She says she hoped it would calm things down. But here, it seemed to do the opposite.

Dan Simon, CNN, San Francisco.

(END VIDEOTAPE) CUOMO: Table test. What do you think, BB?

BALDWIN: I would totally wear them. I think just out of curiosity. I would rock some Google glass for the day. But I'm wondering Mr. Lawyer, there are obviously privacy issues. I mean, these people bring up good points.

CUOMO: Yes.

PEREIRA: Our cameras have a tally light on them, so we know when they're on.

BALDWIN: Right.

PEREIRA: It would be nice if there was a little red --

BALDWIN: Yes. Like recording.

PEREIRA: We're recording. Right. So people know. There you go. Tally light off, tally light on.

CUOMO: She was recording people -- they were drinking at a bar where they have an expectation of privacy and don't have the best judgment, and you are asking for trouble. Ironically, it used to be that you did not hit the person with the glasses on. Now, those people may be asking for it.

BALDWIN: They're getting beat up.

PEREIRA: It's going to be interesting --

BALDWIN: Would you wear them?

CUOMO: I wouldn't. I'm not an early adapter. And I don't understand what I need them for.

PEREIRA: You don't also block those baby blues.

CUOMO: That is true. That is a strong point, Mich.

PEREIRA: I know you --

CUOMO: Strong point. I think we consider that. The beauty factor.

(LAUGHTER)

CUOMO: Coming up on NEW DAY, can't read it, need the Google glass, the average tax refund is in the thousands. Here's the question, though, what do most people do with it? More importantly, what should you do? We have a definitive report coming up that proves the best use is buying fishing tackle and parts for old muscle cars.

(CROSSTALK)

CUOMO: The science behind this.

(LAUGHTER)

BALDWIN: Editorial!

(COMMERCIAL BREAK)

CUOMO: "Money time," your money. And it's also tax season. So, let's bring in chief business correspondent, Christine Romans, and we want to know, how do we get the most out of the refund check?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Chris is going to spend his fishing tackle and muscle car parts, he says.

(LAUGHTER)

ROMANS: The average tax refund comes in around 3,034 bucks. That's three percent more than last year. Before you spend it on that, Cuomo, this is what you're supposed to do first, pay down high interest credit card debt, pad your savings to make sure you have enough to cover six months of expenses, six months in savings, invest it in a college savings plan or retirement account, and then ask yourself, why are you giving Uncle Sam an interest free loan in the first place? Are you crazy?

More than half of Americans have Uncle Sam hold their money each year as forced savings. A big tax refund means poor planning on your end. This year's three grand means you gave the government $250 a month interest free last year. Why did you give the government 250 bucks interest free last year? You could have paid rent, credit card, insurance. You could have cash for gas, groceries.

If you're using it as forced savings, I get you. I get you. But, don't give the government an interest free loan. Why are you doing them, Michaela?

PEREIRA: Because it forces me then to use that money on something that I need to do. a bit like whether it's a renovation of the house. Whether -- you know what I mean? A big project. I do it and I know I'm not supposed to.

ROMANS: You're not supposed to.

CUOMO: I think that's strong. I like forced savings. And if you exchange or withhold -- say you get more money during the year. What if you get it wrong?

ROMANS: Be very careful -- I will say this, if you do that, Michaela, be very careful that you don't get the refund and then splurge with it and not use it for one of those first things --

PEREIRA: Muscle cars and fishing tackle.

(CROSSTALK)

BALDWIN: Let's call you out.

(LAUGHTER) CUOMO: No. That happens enough.

(LAUGHTER)

CUOMO: It's much better this way, when my wife is not here to call me out. That's why I did it.

PEREIRA: I will change the error of my ways, Christine Romans.

CUOMO: But if you change that withholding, you got to be careful.

ROMANS: Be careful. That's right.

PEREIRA: "Must-See Moment," anyone? Anyone?

CUOMO: Please.

PEREIRA: Here we go. Doubles golf anyone? Two California (ph) teenagers. Check this out. Precision timing and concentration needed for your standard golf shot. But not quite. Up a notch. Take a look.

(BEGIN VIDEO CLIP)

(CROSSTALK)

PEREIRA (voice-over): Yes. That amazing trick shot, a pair of high school juniors. One chips the ball right and to the other swing. Boom! Do it at their local driving range.

CUOMO (voice-over): Strong!

PEREIRA: They have blown up the internet. The internet has just gone crazy with this. It's gone viral. Something like two million hits or likes, whatever you call it.

(CROSSTALK)

BALDWIN (voice-over): You just needed that one. They got one.

PEREIRA: Look at that.

(END VIDEOTAPE)

CUOMO (on-camera): How many tries do you think it took? How long?

BALDWIN (on-camera): A gazillion.

CUOMO: It was day when they started.

BALDWIN: Totally worth every single --

PEREIRA (on-camera): As many likes as they got is probably just many attempts they --

CUOMO: Worth it, though. PEREIRA: Very cool.

BALDWIN: Ah-ha.

CUOMO: Impressive.

BALDWIN: Thanks, Michaela.

PEREIRA: No problem.

CUOMO: Coming up on NEW DAY, the two passengers on flight 370 with stolen passports, you've heard about them, but now, Malaysia is sharing pictures of the man with the U.S. We're going to dig into how they fit into the mystery of the missing flight. Stay with us.

(COMMERCIAL BREAK)

CUOMO: Good morning. Welcome back to NEW DAY. It is Tuesday, March 11th, seven o'clock in the east now. And we're going to start with our news blast. That is the most news you can get anywhere. Let's go.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Not likely to be a member of any terrorist group.

UNIDENTIFIED MALE: You still have, you know, no verification that shows where they were terrorists.

UNIDENTIFIED MALE: He said that the U.S. was illegally sponsoring a coup.

JUSTIN BIEBER, SINGER: I don't have to listen to anything you have to say.

UNIDENTIFIED MALE: You can be held in contempt with court.

UNIDENTIFIED FEMALE: Steenkamp's injuries so gruesome, they left Pistorius vomiting into a bucket.

(END VIDEOTAPE)

CUOMO: We start with a show of defiance from ousted Ukrainian president, Viktor Yanukovych. This morning, he says he's still the president of Ukraine. And any vote to elect the new president is illegal. He also called out the U.S. for support of the interim government. Meantime, the U.S. is among ten countries meeting in London to discuss more sanctions against Russia. And, Secretary of State john Kerry has canceled a meeting with Vladimir Putin.

BALDWIN: Now to the latest in Oscar Pistorius' murder trial. The Blade Runner's defense now trying to discredit his friend, Darren Fresco. Remember, he's the person Pistorius allegedly asked to take the fall for gunfire at a crowded restaurant. Fresco is also in the car when he says Pistorius fired a shot through a sunroof after a traffic stop. Earlier, Fresco told prosecutors he knew Pistorius had a great love of weapons and assumed he was competent with them.

PEREIRA: Senate Democrats now in their 13th-hour of an all-nighter on the Senate floor. Show you a live look. They're trying to draw attention to climate change overnight in a thinly veiled shot, a Republican Ted Cruz for his filibuster last year. Massachusetts Senator Ed Markey, tried to teach a lesson from "Lorax" by Dr. Seuss.

(BEGIN VIDEO CLIP)

SEN. ED MARKEY, (D) MASSACHUSETTS: Unless someone like you cares a whole awful lot, nothing is going to get better, it's not.

(END VIDEO CLIP)

PEREIRA: Republicans are dismissing tonight's action as political theater.

(LAUGHTER)

CUOMO: At least, it had something to do with the debate. Green eggs and ham had nothing to do with it.

All right. Scoring point for privacy advocates in the controversy over the NSA's domestic spying program. The agency was supposed to destroy millions of phone records that collected more than five years ago, but a federal judge overseeing an invasion of privacy lawsuit against the agency ordered that those records be temporarily preserved.

BALDWIN: NSA leaker, Edward Snowden, wants the tech community to fix, his word, what he says the NSA is destroying, specifically, our privacy and security. He was speaking via video conference at Austin South by Southwest Interactive Festival. He told developers and entrepreneurs -- for me to say -- that the NSA is setting fire to the future of the internet and it's up to them to fight back.

Remember, Snowden is in Russia. He faces charges here in the United States of violating the Espionage Act.

PEREIRA: All eyes on Florida this morning for the first Congressional election of 2014. It feats (ph) Democrat, Alex Sink, against Republican, David Jolly, in the state's 13th district which is in the Saint Petersburg area. The contest is widely seen as a referendum on Obamacare. It could shape the way candidate's from both parties campaign in midterm elections. Right now, that race is too close to call.

CUOMO: All right. Listen up, we have breaking news coming in right now about the missing Malaysian Airlines flight 370. The two passengers who boarded with stolen passports have now been identified.