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NEW DAY

Bleacher Report; Clinton Town Hall; Amazon Expected to Unveil First Smartphone; Iraq's Oil Refinery Under Attack

Aired June 18, 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: 6:30 in the east. Let's give you a look at your headlines.

The U.S. has captured the alleged mastermind of the deadly 2012 attack on the American consulate or mission in Benghazi. Ahmed Abu Khatalla is being questioned aboard a Navy ship and should be in the U.S. within days. President Obama says he'll face the, quote, "full weight" of the law. Officials say he was nabbed over the weekend with no shots fired in the operation.

At least 21 people were killed, dozens more injured after an explosion rocked a World Cup viewing center in Nigeria. Witnesses say the bomb appeared to have been hidden in a motorized rickshaw outside the venue. Crowds gathered there to watch the match between Brazil and Mexico on big screen TVs. No group has yet claimed responsibility for the blast, although that area is home to the militant Islamist group Boko Haram.

New hope for an end to the violence in eastern Ukraine. Ukrainian President Petro Poroshenko is reportedly ordering a cease-fire by government troops in an effort to end the fighting with pro-Russian separatists. His decision comes after a phone conversation with his Russian counterpart, Vladimir Putin, and it follows the death of two Russian journalists in Ukraine.

This is what is called a massive markup. This is a one-cent stamp back from the 19th century. It has sold for $9.5 million at auction. It is the 1856 British Guiana one-cent magenta. The stamp features a three masted ship and the colony's motto in Latin, quote, "we give and expect in return." This is the fourth time this stamp has set a record on the auction block. The buyer has chosen to remain anonymous, smartly. Bet you won't be getting that on a letter any time soon. Called the most valuable stamp in the world. It is now that --

CUOMO: Has anybody seen my three posted magenta. Oh, yes, I used it to mail the gas bill out.

BOLDUAN: Well, I - yes.

PEREIRA: It's a mere $9.5 million (INAUDIBLE) the gas bill. BOLDUAN: I was just sending Michaela a thank-you note. Sorry.

CUOMO: There's a little bit of tough sports news to tell you here. The key to beating Portugal Sunday for the U.S. men's national team will be defense. And a key to that key seems to have the worst kind of ouch for a soccer player. Let's bring in Joe Carter. He has more on the status of Jozy Altidore in this morning's Bleacher Report.

We saw him grabbing his hammy. It's the worst thing you want to see for a soccer player. What do we know?

JOE CARTER, BLEACHER REPORT: Yes, you know, it didn't look good, Chris. Here's the thing. We hope that he plays. But if he does not play on Sunday, some likely fill-ins, Aron Johannsson. They call him "ice man." He's, of course, who went in for him - went in for Altidore against Ghana. Then you've got Chris Wondolowski. He plays for San Jose in the MLS, one of the top scorers in MLS. And then you have the wild card. I mean, obviously, Jurgen Klinsmann can go with Julian Green, who's the 19-year-old.

He's the guy who many believe took the roster spot from Landon Donovan. So it's going to be interesting to see how Jurgen Klinsmann handles this. The coach is usually known to keep his cards close to his vest. Altidore had the MRI yesterday on the left hamstring. The results have not been made available, which is not a surprise. We fully expect that Klinsmann is going to pull the Bill Belichick card here and keep his injury status a secret as long as possible, obviously playing mind games with the upcoming opponent in Portugal.

Now, the team's captain, Clint Dempsey, who broke his nose in the Ghana game, he is a go for Sunday. Of course, he played all 90 minute last game. But this time he may be sporting a LeBron-esque protective mask. So we'll see how that affects him.

But Sunday, guys, can't say it enough, is a huge, huge game for the U.S. men. Now a win against Portugal assures that we'll advance to the knockout round. We can still actually draw with Portugal and that would keep us in good position to advance. But at the very least, we need a tie. But, of course, we want a win.

Ever since the Miami Heat lost to the Spurs in the NBA finals, and it's only been a couple days but it seems like every question for LeBron and the big three are, will you stay or will you go for a new team. The big three, of course, all have contract options this summer. Each one of them can walk away from their contract in Miami and go get a deal somewhere else or they can stay. LeBron said yesterday that he's planning on take a vacation with his family and during that time he's going to think things over.

Here's the deal, guys. The big three are set to make $20 million each. They're three players. They have three other contract players. They're already over the cap with those players. So if the big three want to stay and they want to add another good guy, which they seem to need to have, a big man, they're going to all have to take t a pay cut. They're going to have to restructure their deal and take less money and give that money to the next big player. CUOMO: All right, so give us a quick yes, no, does Altidore play and

do the big three stay?

CARTER: Altidore does not play. I think you keep him out because you've got other talented players that can take his spot. And, no, the big three break up.

BOLDUAN: Oh, well, my goodness.

CARTER: One hundred percent.

BOLDUAN: There you go. You got it straight from Joe. Thanks, Joe.

CARTER: Yes. Hey, take care, guys.

BOLDUAN: All right. We'll see you soon.

Coming up next on NEW DAY, Hillary Clinton talking about her handling of the Benghazi attack at the CNN town hall event last night. Our political experts are here to look at it all.

CUOMO: Plus, do you like Amazon? Do you use it to shop? Well, imagine if it was a phone. The latest and greatest in what it means to you and your wallet coming up.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

HILLARY CLINTON, FORMER SECRETARY OF STATE: I don't want to be meeting my new grandchild and having somebody calling me and saying, oh, you've got to do this, that and the other in order to make this decision. I'm just not going to do that. So, I will make this decision based on how I feel about it and what I believe I can do.

(END VIDEO CLIP)

BOLDUAN: Welcome back to NEW DAY. That was Hillary Clinton at last night's CNN town hall addressing the question so many want to know the answer to, will she run for president? She also covered a host of topics with host Christiane Amanpour ranging from marriage equality, to why she won't try marijuana. But one focal point that has many people still talking this morning is her response to questions about the Benghazi attack and the controversy surrounding the administration's response and the decisions she made as secretary of state before and after the attack.

Let's bring in Margaret Hoover, Republican consultant, CNN political commentator, and Neera Tanden, the president of the Center for American Progress and former policy director for Hillary Clinton's presidential campaign in 2008.

Good morning to both of you.

I know you both watched. We all watched this town hall, Margaret. So what did you learn from Hillary Clinton last night? MARGARET HOOVER, CNN POLITICAL COMMENTATOR: Well, I don't - I don't

think -- I think Neera would agree with this. I don't think any of us learned a whole lot, right? This was -

BOLDUAN: Why not?

HOOVER: Look, Hillary Clinton is not officially running for president right now. This is a book tour. Here she is talking about details of a book that everybody can read and really expounding on them, but in the least controversial way possible. So this wasn't --

BOLDUAN: She didn't move further than the book really?

HOOVER: No, of course she didn't move further than the book, nor should she or would she. I mean why -- if you're Hillary Clinton, you're using this book tour as really an opening to tour the country, talk to Americans, maybe test your own viability for a run. Do you have it in -- the fire in the belly to run again and how do people respond to her and her book. I think this is sort of a soft campaign. Why is she going to step into controversy?

BOLDUAN: Let's not miss the obvious. Have you ever heard of someone who hasn't declared for president getting this type of platform from the media, because this is just the latest, right, a worldwide forum to discuss whatever it is with people around the world. What is your take on this?

HOOVER: Look, it's unprecedented, but she's also an unprecedented phenomenon. I'm sure Neera would like to weigh in here, but the first lady of the United States -

BOLDUAN: (INAUDIBLE) is right.

HOOVER: A senator from one of the largest states in the country for eight years and then the secretary of state. She is -- and the first woman potentially to run for president for a second time. I mean, that's unprecedented.

BOLDUAN: Go, Neera.

NEERA TANDEN, PRESIDENT, CENTER FOR AMERICAN PROGRESS: Yes, no, I mean, I actually - I disagree with Margaret, only that I think people heard her talk about issues like marriage equality, more (INAUDIBLE), she was asked about voting rights, medical marijuana. She was asked a few questions. She hasn't really talked about in detail. Not talked about in the book in detail and have -- a lot of people haven't heard her. So I thought it was a - I thought she did a great job and I think people are really interested in what she has to say, in part because she hasn't been talking about domestic issues over the last few years and she has a lot to say about it.

BOLDUAN: Well, and she's going to be asked -- one thing she's going to be asked about over and over again, whether she runs or not to be quite honest, is the issue of Benghazi. Here's a little bit of what she said about the Benghazi attack.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, FORMER SECRETARY OF STATE: There are answers, not all of them, not enough, frankly. I'm still looking for answers because it was a confusing and difficult time. But I would hope that every American would understand, number one, why we were there, because we need to be in dangerous places. And, number two, that we're doing the best we can to find out what happened.

(END VIDEO CLIP)

BOLDUAN: She says, I'm still looking for answers. So, Margaret, her answer, the capture of Khatalla does that quiet the criticism coming from Republicans?

HOOVER: I think it -- of course it doesn't, and here's why. There is still a question, and I'm not one of these who piles on with the Benghazi conspiracy theories at all.

BOLDUAN: You're not a conspiracy theorist on this for sure.

HOOVER: But there is still a question about why that embassy didn't have the security that it had requested. And is that the secretary of state's responsibility? Which it is clearly her responsibility, though she says it didn't come to her. It wasn't her choice. She never saw the requests for more security. I mean there is this lack of accountability, even though she's taken full accountability. Somehow something is missing. And there are still, I think, legitimate questions that should be raised by that that aren't partisan in nature but that simply fall within the letter of the law.

But the partisan fight has been, why has it been two years and we haven't brought anyone to justice? Today that takes a little bit of wind out of their sails.

HOOVER: Yes, absolutely. And thank goodness we finally captured someone. Makes you wonder a little bit why it took two years when the media had been interviewing this guy for about 18 months.

CUOMO: I was saying that. But you know what, they've convinced me, these guys from the investigative community.

BOLDUAN: It's different getting an interview than getting an investigation.

CUOMO: Yes. We had Rick Frankna (ph) on. He knows how these cases are made. We have a guy named Phillip Mudd (ph) who will be on the show. He worked in terrorism. He's going to tell you what it takes to make a case because God forbid you get someone like this -

HOOVER: Because they are going to try him here in the United States.

CUOMO: Yes, if you get him and you don't have your case ready, now you've got to let him go and, boy, is that terrible. So -

HOOVER: Yes, but, so then - well, he could have - he might have disappeared while we were building a case for him is the (INAUDIBLE). CUOMO: That's true, but you don't know that you didn't have eyes on

him.

Neera, let me ask you something. It seems to me that Hillary is giving all the right types of answers would you give as a candidate. She's parsing, she's careful, she understands balance. But I don't hear her making the case for why she should be a candidate, what her message is, what her dib (ph) would be. Why is that? Why is that disconnect still in play?

TANDEN: Because she's not a candidate. So I think if she runs, she will tell us why she wants to be president and why she should be president. I think --

BOLDUAN: She sure is treating this book tour like she's a candidate, though. I mean, she's everything but a candidate in name, let's be honest.

TANDEM: You know, she's also doing a lot to get the book out there. I mean, that's what's happening in this book tour. And I actually think when, you know when she -- if she runs, then she'll have a great opportunity, and she'll be able to answer every question about why she's running and why she would make a good president, but I just want to remind everybody it is still 2014. We have a few elections.

CUOMO: Don't remind us. Remind her.

(LAUGHTER)

TANDEM: You're the one asking the questions!

CUOMO: We know what time it is. She's the one dangling it in front of us. That's how the media works.

TANDEM: I think she's offered interviews and begged the interviews, so I think the media has a role in all of this.

CUOMO: The Clintons know how to say no. They know how to say no.

(LAUGHTER)

It happens all the time.

BOLDUAN: Let's talk about Iraq and her response to it.

TANDEM: OK, I mean, she has -- she has answered this question about whether she's running or not, so.

BOLDUAN: Let's talk about Iraq and her response to questions about it. Do you think that she -- do you think there's any distance between what -- what she is saying and what the administration is right now? I didn't hear anything.

She's blaming Maliki for the problem. She didn't really, as far as I remember, she didn't really put any blame on the Bush administration. She wasn't stepping into that. She was definitely not putting any blame on the Obama administration for the crisis that's going on right now, but she also says it seems the blame is more on Maliki and that they were considering many options. She was not about to step out there and give her advice about where they should be going right now.

HOOVER: Yeah, she didn't put distance between herself and Bush because she voted to go into Iraq.

BOLDUAN: She does say, though, that was one of the biggest mistakes she made.

HOOVER: Right, well, but -- I mean, that -- again, we don't need to repeat history here. We know that she -- but the issue I think that's really interesting is there's this meme that says it was Maliki who didn't want us there in 2011. The Bush administration failed to negotiate SOFA agreements through 2011.

Well actually, they -- they got them through 2011, and they got them through 2011 by starting very, very early and negotiating for years. I mean, many, many, many months, more than a year. The Obama administration started negotiating six months before that withdrawal date, and that isn't enough time to get it done.

CUOMO: He won the election because people wanted out of Iraq.

HOOVER: So yes, on the face of it it's a true statement. On the face of it it's a true statement. However, it -- it was because Iraq was too political for President Obama to meddle in early on. He wanted to get out. It was the bad war.

CUOMO: He won the election because people wanted to get out.

HOOVER: We did not -- we did not leave residual forces there, which might have avoided the crisis that Iraq is in today.

CUOMO: That is an accurate statement, in fact. However, the question is why it is true, so Neera, what's your take on that?

TANDEM: You know, I think the real challenge here is that the Maliki government for years, including during the Bush presidency, was listening to Iran because that's where his power base has been, and Iran didn't want, you know, American soldiers in Iraq.

So, I mean, I have to say over the last few days, listening to Republican criticism of the president on Iraq, I -- I don't put Margaret in this category, but listening to Vice President Cheney, all these people who got us into this war, told us it was going to easy. We're going to be greeted with a bed of roses. And was it was a terrible, terrible foreign policy disaster.

Even offering advice, I think, is really the height of chutzpah. I don't Margaret in that category. She's talking substance. But if you look at what people have been saying over the last several days, it's really quite incredible since they were so wrong about Iraq in so many ways. Listening to them talk about what we should do now is really incredible. Why will they be right now when they were so wrong before? CUOMO: Well, there's still plenty to go in that discussion. So

Margaret, Neera, thank you for being with us. To be continued.

Coming up on NEW DAY, Amazon getting into the smart phone market. Yes, but is it a smart move? Internet giant trying to reach out, tight space. We're gonna to tell you the specs of this fancy new gadget and let you decide. Let the market decide.

(COMMERCIAL BREAK)

PEREIRA: And welcome back. Could another smartphone be entering the market? Later today, online retail giant Amazon expected to unveil its first smartphone. Not a lot of information on it yet, but the phone supposedly will have 3-D technology and could even track users' movements.

We bring in our technology analyst Bee (sic) Larson. What do we expect today in Seattle?

BRETT LARSON, TECHNOLOGY EXPERT: I think they are going to unveil a smartphone. I think it's a tough marketplace to get into right now. It's very dominated by all the phones that we have that run android. Then we've got the iOS phone, you know, the iPhone.

Microsoft has a challenge ahead of them with their Windows phone because it's a crowded space, and everybody wants simplicity. They want an app store that has every single thing that they want, and we'll have to see what they bring to the table.

PEREIRA: Amazon has all the content, right?

LARSON: They do.

PEREIRA: They're content delivery people.

LARSON: So it would make sense. Their -- their Kindle is incredibly popular as a tablet. It's -- it's very well tied in. You can watch movies on it.

BOLDUAN: That's not a phone.

LARSON: It's not a phone. It's a data device you can read and watch movies on and play games and surf the web. I mean, you're right. It's not something that's this big that you're gonna carry around in your pocket everywhere.

CUOMO: Their problem is that this would be an an and not a or. This isn't an additional thing. This would be swapping out what you now use, and that's a tough choice for consumer.

LARSON: That is, especially since most cell phone providers lock you in for two years, and most people are under a contract right now.

PEREIRA: And what do you want on there? You want apps, right? Everybody complains about the apps that are available or is happy with the apps that are available. CUOMO: I want battery life.

(CROSSTALK)

LARSON: And I know Gorilla Glass 3, Chris. So then it doesn't break when you --

(CROSSTALK)

LARSON: I'm calling him right now. Jeff, don't roll it out without Gorilla Glass 3. They do, but this is where Microsoft is suffering with the Windows phone, is their -- their app store isn't robust enough. So people get on it, and they're not --

BOLDUAN: Why is Amazon doing it? Why do you think -- I mean, Jeff Bezos, he's a smart guy.

LARSON: Yeah.

BOLDUAN: And he's been very successful in his ventures.

LARSON: He has been. And his investors love it because --

BOLDUAN: What does he know that we don't know?

LARSON: -- even though Amazon doesn't make a ton of money -- they make money, but don't have a lot of profit. I think it's going to be an extension of Amazon. It's, you know, it's Earth's biggest marketplace. You can buy everything on there, and I think if it's an extension of shopping, it's kind of a smart way to go for them.

PEREIRA: It might make more sense than say the Facebook phone.

LARSON: Absolutely.

PEREIRA: Because that -- that was not -- that was a failed venture. A

LARSON: Complete failure.

PEREIRA: And interesting, AT&T is set to be the carrier for this, right?

LARSON: Exactly.

PEREIRA: An exclusive partnership. They -- AT&T was tied to the Facebook phone as well.

LARSON: To the Facebook phone as well, which did not sell well. I mean --

BOLDUAN: Wasn't that a problem with -- with the iPhone to begin with? It was an exclusive thing as well and --

LARSON: Yeah -- it was exclusive with AT&T. It was kind of -- had a rocky start there because the network couldn't really handle that influx of these data hungry smartphones and money.

What's interesting that I've read about is the prime streaming, this -- you know, if you pay the $99 here for free shipping and all the other things that Amazon Prime gives you, that you'll be able to stream movies and other Amazon content -- Amazon content, for free to the phone. That's a bit of a game changer.

PERERIA: Price point roughly?

LARSON: It's got to be $250 to $300 or people aren't gonna --

BOLDUAN: Can I ask you a dumb question? What is exclusively Amazon content?

LARSON: Movies and -- and things that they have through the Amazon Prime store. They just launched a music service last week.

PEREIRA: Brett Larson, I could talk to you for an hour.

LARSON: Right, we didn't mention the 3-D gaming. I think that's big. If it's true on the 3-D gaming, I think that'll ruffle some feathers.

PEREIRA: A little more information on the Amazon smartphone from B. Larson, as I like to call him, visit newdaycnn.com.

BOLDUAN: Thanks, Brett.

CUOMO: I like that he did this, ruffle some feathers.

All right, a lot of news this morning for you. Isis is bearing down on Baghdad. We have Anderson Cooper there to give us the latest. Got to be on the ground to tell that story the right way.

Plus the alleged mastermind of Benghazi is captured. The big question, was he planning another attack? Answers ahead. Let's get to them.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: A deadlier and more ruthless occupation that's ever existed.

SEN. TED CRUZ, R-TEXAS: You cannot win a battle against radical Islamic terrorism if you don't acknowledge the character.

BARACK OBAMA, U.S. PRESIDNET: Our special forces were able to capture an individual, Ahmed abu Khatalla.

UNIDENTIFIED MALE: He's allegedly a key figure in the Benghazi attacks.

UNIDENTIFIED FEMALE: And urgent humanitarian situation.

HILLARY CLINTON, FORMER SECRETARY OF STATE: Just because your child gets across the border, that doesn't mean the child gets to stay.

MEHMET OZ, DOCTOR: This miracle pill can burn fat fast.

SEN. CLAIRE MCCASKILL, D-MISSOURI: Quote, "lightning in a bottle". You know it's not true.

(END VIDEOTAPE)

BOLDUAN: Good morning, and welcome back to NEW DAY.

Happening right now, one of Iraq's largest oil refineries is under attack by ISIS militants, reports of that. Iraqi military claims they have prevented the militants from taking over the facility. Insurgents have been racing toward Iraq's capital city, leaving a path of destruction in their wake, including fierce gun battles raging in the city of Baqubah, roughly 40 miles north of Baghdad.

We're joined now by Anderson Cooper. He's live, has been live for us on the ground in Baghdad with much more.

So Anderson, what are you hearing about these reports on the attack from this oil refinery?

ANDERSON COOPER, CNN CORRESPONDENT: Yeah, certainly a major development. Not really a surprise. It is in an area where ISIS has been operating quite successfully over the last six days or so. It's the largest oil refinery in Baiji up in the north. The company has a contract there.

They actually got private security contractors, a British firm, which many companies use here in Iraq to protect themselves. Private security contractor said -- said to have been able to evacuate the foreign personnel, the westerners from that refinery just prior to the attack.

It's not clear exactly the status of the refinery right now. The Iraqi government has said that they were able to resist the attack, but, again, it's very hard to verify statements made by the Iraqi government. Sometimes they are more cheerleading (ph) than they are accurate, so we're gonna have to wait and see in that. There has been video, which purports to show smoke rising and part of the -- the plant on fire. But again, very hard to tell what the status of the battle is there right now.

BOLDUAN: That's one big element of the story, Anderson. But also, yesterday, when we spoke, we're talking about tensions very high in Baghdad on the ground there. What are you hearing from folks that you've been talking to?

COOPER: Yeah, look, they certainly are. I mean, any time you have this group ISIS and other Sunni militants less than 40 miles from this capital city, you know, that just ratchets tensions up even more.

As you know, there was fighting in Baqubah.