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David Bowie Dies After 18-Month Cancer Battle; Sean Penn Faces Heat for Meeting with Fugitive;Latest from the Campaign Trail. Aired 9-9:30a ET

Aired January 11, 2015 - 09:00   ET

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


[09:00:01] CUOMO: You don't have to do what this man did, but it just shows you a beautiful example of how far some of us are willing to go.

CAMEROTA: Here you go. It is time now for "NEWSROOM" with Carol Costello.

Good morning, Carol.

CAROL COSTELLO, CNN ANCHOR: It's a great story.

PEREIRA: Sorry to tell you it's Monday again, hon.

(LAUGHTER)

COSTELLO: I know. It's the worst day of the week, but we're going to -- I'm going to rise to the challenge. Thanks. Have a great day.

NEWSROOM starts --

CAMEROTA: We can do it.

COSTELLO: I know. NEWSROOM starts now.

(BEGIN VIDEOTAPE)

COSTELLO: Happening now in the NEWSROOM.

Remembering rock and roll superstar David Bowie.

Musical chameleon, fashion icon.

UNIDENTIFIED FEMALE: He changed his persona so often.

COSTELLO: This morning, fans spanning from the British prime minister to Kanye West, say good-bye to their favorite space alien.

Also, stranger than Hollywood fiction. Actor Sean Penn interviews notorious Mexican drug lord El Chapo before his capture. Could the Oscar winner be in legal trouble?

Plus, Iowa up for grabs. Cruz tops Trump.

SEN. TED CRUZ (R), PRESIDENTIAL CANDIDATE: I would love to win Iowa. We'll see what happens. COSTELLO: Sanders closes in on Clinton.

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Polls go up, they go down. I stay pretty focused.

COSTELLO: What isn't clear? Who will win in just 20 days?

Let's talk. Live in the CNN NEWSROOM.

(END VIDEOTAPE)

COSTELLO: And good morning. I'm Carol Costello. Thank you so much for joining me.

If you're between the ages of 20 and 70, chances are David Bowie provided at least some of the soundtrack to your youth. And it was a talent that pushed the boundaries of music, fashion, even gender.

Millions of Americans are waking up to the news David Bowie has died after an 18-month battle with cancer. I can't believe this. Bowie's latest album and this music video coming out just two days before his death. As you can see, the singer's story line shows him in a hospital bed.

CNN's Phil Black is in London, just a couple of blocks from Bowie's birthplace. And here in New York CNN's senior media correspondent and host of "RELIABLE SOURCES" Brian Stelter.

I'd like to start in London, though, where people are paying tribute. Take it away, Phil.

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Hey, Carol. Yes, this is Brixton, South London, this is where David Bowie's journey began, where he was born as David Jones.

I want to show you a bit of the scene here really. It's pretty emotional. What we've seen through the day, people continuously coming here, laying flowers, tributes, candles. People standing before this mural of Bowie, depicting him as he was in the early '70s. Just standing there openly. Weeping.

It is really very emotional here. And the one thing that people have been telling us through the day is the shock they felt this morning as they woke up and heard the news. These are Bowie fans, people who followed him for decades. People who just love his music desperately. Well, they know that he's kept a fairly low profile over the last few years, hasn't performed publicly since 2006, suspected he may not have been unwell.

With the release of his most recent album, however, no one thought that he was so unwell that he was at risk of death. So an enormous sense of shock here. But what has followed that is a great sense of grief. And that is what we are seeing here on the streets of Brixton this morning -- Carol.

COSTELLO: Phil, if you could have the camera pan off you and on to the tributes, though, I think people would like to see it because Bowie's death has affected so many around the world.

BLACK: Yes. We'll show you what we can here once again, Carol. It's a bit difficult because there are so many people here coming and going continuously. A lot of cameras, as well. A great deal of news interest, as you can understand.

But what we're seeing here is this. It started early this morning, very soon after the news broke. And that pile of flowers, the tributes, the candles, it has been growing continuously through the day. And as I said, people have been openly sharing their grief here. This is what they have come here to do. The mural here, as I said, depicts Bowie and his glam rock heyday, as he was in the cover of the 1973 album "Alladin Sane."

But his career went on to so much more after that. And that's why we're still talking about him. That's why all of these people are coming here today, to honor the man, his five-decade career. His artistic instincts, if you'd like, that saw him explore music, constantly changing, but also explore other mediums, as well. He's a man who touched so many people.

This is just one of the sites around the world honoring David Bowie today -- Carol.

COSTELLO: All right. Phil Black, thank you.

I want to turn to Brian Stelter now.

[09:05:04] I love David Bowie. It's just strange how much this is affecting me. I cried when I heard.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: He's one of just a very small number of artists who I think would elicit this kind of emotion from people all around the world. You know, here in New York, he had been producing a new play downtown on 4th Street.

COSTELLO: I tried to get tickets. It's sold out.

STELTER: "Lazarus" is the name. Just came out recently. Had been extended. And of course his album coming out the other day. His producing partner, long-time partner said this morning he thinks the album was a parting gift to people.

I think if there was one word to describe David Bowie, one word out of so many, it would be mesmerizing.

(BEGIN VIDEOTAPE)

STELTER (voice-over): Legendary British singer David Bowie, who indelibly influenced generations with his eclectic persona and groundbreaking sound, dead at age 69 after an 18-month battle with cancer.

Bowie's publicist confirming the icon, "died peacefully, surrounded by his family after a courageous 18-month battle with cancer. While many of you will share in his loss, we ask that you respect the family's privacy during their time of grief."

His son tweeting, "Very sorry and sad to say it's true. I'll be offline for a while. Love to all."

An illustrious career spanning over 40 years. Bowie was born in South London as David Jones.

Bursting on to the scene in 1969 with the smash hit "Space Oddity."

And later as his ethereal space alien alter ego, Ziggy Stardust.

Bowie's flamboyant theatrics and a fashion-forward style becoming a signature hallmark of the genre-defying pop fixture.

His music, a rally cry for misfits everywhere. In 1996, Bowie was inducted into the Rock 'N' Roll Hall of Fame and awarded a Grammy Lifetime Achievement Award 10 years later.

His longtime wife, supermodel Iman, a steady fixture by his side. Bowie a master of reinvention, continued working, dipping in and out of the public eye, releasing his latest album, "Blackstar," just days ago on his 69th birthday, much to critical acclaim. The album topping charts in the U.K. and the U.S.

Highlighting Bowie's unparalleled ability to continue to push the envelope, even after four decades in the industry.

(END VIDEOTAPE)

STELTER: A transcended artist. We all have a favorite song. Do you have a favorite in mind?

COSTELLO: I would have to say "Space Oddity" Ground Control to -- because it's so haunting.

STELTER: Right where it began, 1969. I think for me, "Heroes" in the '80s. You know, he embraced the music video revolution as well in the '80s. Some ways that was the peak of his fame. But through it all, he kept producing new music.

COSTELLO: Awesome. Brian Stelter, thank you.

STELTER: Thanks.

COSTELLO: One of the most feared drug dealers in the world wakes up in a Mexican prison, but inches closer to his day in a U.S. courtroom. This is the home in western Mexico where authorities captured Joaquin "El Chapo" Guzman in a deadly shootout. Extradition proceedings are now underway to transfer custody of El Chapo from the very prison that he tunneled out of just six months ago.

And it's not just that daring escape that smacks of Hollywood, American actor Sean Penn is taking some heat for secretly meeting the fugitive for a "Rolling Stone" article that came out over the weekend. Mexican authorities say they want to talk to Penn and the Mexican actress who apparently arranged the interview. And while the legal and ethical issues are debated, some of Penn's

Hollywood colleagues are defecting the actor's motives.

(BEGIN VIDEO CLIP)

MATT DAMON, ACTOR: It's nothing new. Actors going and seeking out meetings like this. I don't want to throw any other actors under the bus, but I know a lot of very, very serious actors and filmmakers who have been having meetings like this forever. And writers, for that matter, who take meetings like this. And it's part of, you know, what we do to do our job really well.

(END VIDEO CLIP)

COSTELLO: CNN's Nick Valencia is in southern Mexico where El Chapo is being held.

Good morning.

NICK VALENCIA, CNN NATIONAL CORRESPONDENT: Good morning, Carol. Senior law enforcement official here in Mexico tells me that we could expect El Chapo in a U.S. courtroom as early as this summer. Of course, all of that depends on legal proceedings.

El Chapo's attorney says he does not want his client extradited to the United States. He believes the judicial system here in Mexico is sufficient enough to handle the case.

[09:10:05] Meanwhile, the talk here on the ground, of course, is this rare and exclusive interview that El Chapo gave three months after his escape last year to, of all people, Sean Penn. And in this interview, we hear in his own words from El Chapo and his role in drug trafficking.

(BEGIN VIDEOTAPE)

JOAQUIN "EL CHAPO" GUZMAN, DRUG KINGPIN: (Speaking in Foreign Language).

GRAPHIC: This interview is for the exclusive use of Kate del Castillo and Mister Sean Penn.

VALENCIA (voice-over): In a two-minute clip posted to RollingStone.com over the weekend, notorious drug trafficker Joaquin "El Chapo" Guzman gives an exclusive interview to Mexican actress Kate del Castillo and Academy Award winner Sean Penn.

GUZMAN (Through Translator): Well, it's a reality that drugs destroy. Unfortunately, as I said, where I grew up, there is no other way. And there still isn't. A way to survive. Another way to work.

VALENCIA: El Chapo speaking while on the run, follow-up questions through a face-to-face meeting he had with Penn in October.

GUZMAN (Through Translator): All I do is defend myself, nothing more. I do not start looking for trouble. VALENCIA: This photo of the two taken just three months after the

drug kingpin escaped out of a maximum security prison in central Mexico.

Now Mexican officials want to question the Hollywood A-lister, along with this famous Mexican actress, Kate del Castillo. She's credited with linking Penn to the heavily-guarded fugitive. Penn writing in "Rolling Stone," "I take no pride in keeping secrets that may be perceived as protecting criminals."

Guzman's desire to talk to the actors about making a biopic about his life could have been the slip-up that led to Friday's capture.

Castillo forging a friendship with El Chapo after a 2012 tweet critical of the Mexican government. CNN receiving contradictory information about whether or not the Mexican government knew about the interview before it was published to "Rolling Stone's" Web site. A senior Mexican law enforcement official says no. However, a separate source tells CNN they were well aware and that it aided in finally catching the world's most wanted drug lord.

(END VIDEOTAPE)

VALENCIA: El Chapo is in the Altiplano Penitentiary. It's Mexico's most secure prison. That didn't matter much to El Chapo, though. He escaped last year and, of course, him being back in that same prison he escaped has raised a lot of eyebrows, certainly concerns that it could happen again -- Carol.

COSTELLO: All right, Nick Valencia reporting live from Mexico this morning.

Let's bring in our CNN legal analyst Paul Callan. So if you're the guy prosecuting El Chapo and you hear about Sean Penn, you know, going to a secret location and interviewing him, what goes through your mind?

PAUL CALLAN, CNN LEGAL ANALYST: Well, obviously, if I'm the Mexican prosecutor, I say put a tail on Sean Penn and we'll find him. I mean, that's the ultimate irony here. Sean Penn, who sort of idolizes and romanticizes El Chapo, may in fact be responsible for him getting caught by Mexican authorities. The reports are that that was information that helped them in locating him.

COSTELLO: So it's just like the -- hubris of this El Chapo because he wants his story told in Hollywood, which is why he agreed to this interview with Sean Penn.

CALLAN: Yes, it's really --

COSTELLO: And he'll probably get his wish. And this is a vicious killer.

CALLAN: It's pretty unbelievable. And people have to remember that the Sinaloa Cartel, they say, may be responsible for as many as 125,000 murders. Many people tortured to death. So don't romanticize El Chapo too quickly. And it's really astounding. He's spending his time looking for actors to play him in the movie role. And that's how he gets caught.

COSTELLO: It's just -- OK. So Sean Penn, everybody is wondering, he interviews this fugitive. He doesn't tell authorities. Could he be in trouble?

CALLAN: It's possible but unlikely. Under U.S. law, you can be charged with aiding and abetting, accessory after the fact, harboring a fugitive. But all of those things require you to actively help in hiding him. All Sean Penn is going to say he did was travel and talk to him. And journalists have traditionally talked to criminals. I mean, there were interviews with bin Laden when he was on the run. There's nothing criminal about that. So --

COSTELLO: Except Sean Penn is not a journalist.

CALLAN: Well --

COSTELLO: I guess he was acting as one.

CALLAN: Well, what is a journalist these days? And I'll give an example. "Rolling Stone" --

(LAUGHTER)

COSTELLO: It hurts when you pose that question.

CALLAN: Well, no, I'm sorry. I didn't mean to be looking at you when I said that, Carol. But "Rolling Stone" really has moved the line on this considerably. They hired a guy named Hunter Thompson in 1972 to cover the presidential campaign. He was dropping LSD during the course of his coverage and that got published and it was a big story. So we know what we're getting with Sean Penn. It's not like they're saying, we're sending out Walter Cronkite to cover this. People, when they read the article, they know it's Sean Penn, he's an activist. He's not bringing objectivity to the story.

So as long as you know what you're buying, I'm not so sure that it's a violation of the new journalism that seems to exist out there today.

COSTELLO: Paul Callan, thanks.

CALLAN: OK. Thank you.

[09:15:01] COSTELLO: Still to come in the NEWSROOM, frontrunners ready to fight it out in Iowa. Clinton and Trump both losing ground, though, in a new poll. But the vote, just three weeks away.

(COMMERCIAL BREAK)

COSTELLO: The battle of the GOP frontrunners were just three weeks away from the first presidential caucus and Donald Trump and Ted Cruz keeps throwing political punches and here's why. A new NBC News/Wall Street Journal Marysville reveals Trump and Cruz are neck in neck in Iowa, with Cruz still holding a slight edge over his main competitor with 28%. But, that edge only holds if fewer people vote. And Mr. Trump knows it.

(START VIDEO CLIP)

DONALD TRUMP, (R) 2016 U.S. PRESIDENTIAL CANDIDATE: You have to go and register. Otherwise, they're not going to let you vote. So go out of here and register or you can't vote. And you know what's going to happen if you don't vote. Our country is going to go to hell because that's what's happening. That's what's happening.

(END VIDEO CLIP)

COSTELLO: When it comes to New Hampshire, it is all about the Donald though, Trump now tightening his grip around the top spot in the granite state, the most intriguing things about these holes though in a head to head matchup, Bernie Sanders, swatters both Trump and Cruz. Let's bring in CNN's Athena Jones with more. She's in Washington, good morning.

ATHENA JONES, CNN CORRESPONDENT: Good morning Carol. This is all very interesting. Of course, Trump is the one keeping the pressure on Cruz right now. Cruz is trying not to really throw punches pack. But Trump sees these numbers in Iowa, sees this race very tight there, and what a big prize it would be for Trump to win in Iowa while he's already very much ahead in New Hampshire. And so he's raising these questions constantly about Cruz's citizenship and whether he's a natural born citizen and eligible to be president. Cruz of course says this is not an issue. Take to listen at what he had to say on State of the Union yesterday.

(START VIDEO CLIP)

[09:20:11] TED CRUZ, (R) 2016 U.S. PRESIDENTIAL CANDIDATE: The substance of the issue is clear and straightforward. As a legal matter, the Constitution and federal law are clear that the child of a U.S. citizen born abroad is a natural born citizen. And the dynamic that's happening, you know, was interesting. Three weeks ago, almost every Republican candidate was attacking Donald Trump. Today, almost every Republican candidate is attacking me.

(END VIDEO CLIP)

JONES: So Cruz there gets an opportunity to talk about his own momentum. But the fact is this constant drum beat from Trump is forcing Cruz to respond to this over and over again. From our reporters on the ground at the rallies over the weekend in Iowa and Nevada, the Trump rallies, they talked to voters who also were, the question have been raised in their mind, they didn't realize that Cruz was born in Canada. So Trump is succeeding on that front. Cruz is of course campaigning in Baton Rouge, Louisiana. Today, we'll see if he continues to respond to this issue.

Meanwhile on the democratic side, you mentioned the top line numbers. Yes, Clinton is slightly ahead of Sanders in Iowa. Sanders is leading Clinton in New Hampshire. But what's so interesting of these hypothetical general election matchup numbers, of course we're a long way out from the actual general election. No nominee has been selected. But Clinton's main argument, part of it is that she's more electable than Sanders. So to see Sanders leading all of these candidates much more than she does is pretty significant.

In the state of Iowa, Clinton loses to Cruz and Rubio. She leads Trump by eight points. But Sanders leads Trump by 13 points in Iowa and beats both Cruz and Rubio. And we're seeing a similar pattern in New Hampshire. Sanders way ahead of Trump, 19 points ahead. Instead of just 1 point from Clinton. And he also beats those other two. So, it might damage her electability argument, at least this one poll. Carol?

COSTELLO: Interesting. OK, we're going to get into that in a little bit. Athena Jones, thanks so much. As part of the final push to the first primaries, the candidates are campaigning hard. You heard what Athena said. And for Trump, that includes a return to Late Night. He's heading to the "Tonight Show with Jimmy Fallon". You remember the last time, right?

(START VIDEO CLIP)

JIMMY FALLON, THE TONIGHT SHOW WITH JIMMY FALLON HOST : I guess it's time to go out and talk to that dopey goofball Jimmy Fallon and give him the biggest ratings his pathetic show has ever seen. How do you think it's going to go?

TRUMP: It's going to be really class y.

FALLON: It's going to be really fantastic. It's going to be huge.

TRUMP: Huge!

(END VIDEO CLIP)

COSTELLO: With me now, CNN political commentators Tara Setmayer and Errol Louis. Thanks to you both for being with me. So why isn't Jimmy Fallon inviting Ted Cruz, Errol?

ERROL LOUIS, CNN POLITICAL COMMENTATOR: Well, I mean, there is that small matter of ratings, which is actually kind of a big deal for non- news programs. I think though that you know, look, if Ted Cruz does sort of does win Iowa and does something unusual, perhaps Jimmy Fallon will make a phone call or two. But you know, let's keep in mind, there are these institutional linkages, you know. Although Donald Trump no longer appears on NBC, there are a lot of people who will remember him. He's got some friends, he's got some contacts. He is a ratings draw. He is you know, sort of noteworthy in getting a lot of attention. Sure, why not?

COSTELLO: Sure, why not? OK, so let's talk about Ted Cruz. And you know, he think he could win in Iowa, right? So that this whole birther talk, Trump is like bringing it up every chance he gets. But Tara, it doesn't really seem to be hurting Ted Cruz that much.

TARA SETMAYER, CNN POLITICAL COMMENTATOR: Well, when you're this close in a race in Iowa, a few percentage points matter. So, as Athena mentioned that some people are talking about this. And the fact that they're talking about it, raises a specter in their minds, of well, maybe there is a problem with his eligibility. And sometimes, when voters are not sure and they're kind of leaning one way or the other, sometimes that's all it takes for them to go, you know what, I'm not comfortable with this. He could be tied up in litigation. Whatever all of these things that Donald Trump continues to repeat, that starts to plant the seed and starts to grow a little bit. So we're still three weeks away. A lot can happen between now and then. And as long as Donald Trump continues to make this an issue, it's already dominated the political news cycle for almost a week. It may have some of that and all you need is a couple percentage points. And then he goes from being a winner to a loser, or loser to a winner in that matter.

COSTELLO: On the other hand, Ted Cruz's name has like burst on to the scene so to speak because Donald Trump mentions Ted Cruz at every possible moment.

LOUIS: Well that's right. And he is, in fact, as the frontrunner, he's come under a fair amount of attacks. And I don't know if Trump's attacks are going to have much of an effect. I mean, there is that issue of just spreading confusion and discouraging voters a little bit. There are a lot of super-PAC ads that are aimed at Ted Cruz as the frontrunner. I think that might actually have a bit more of an impact. I was in Iowa recently. You turn on the TV and every other ads, somebody is going after Ted Cruz. I mean, there's a lot of rough and tumble going on out there. I think though, it is worth pointing out though, that what Senator Cruz said in the piece was absolutely right. This is absolutely settled. There is no genuine issue here.

And it should be noted that the Trump campaign I think is doing everyone a disservice by pretending that there is. I mean, even just a process. You don't get to just go to the Supreme Court and say, "Hey, give us an opinion about a hypothetical case." If you really mean it, and Trump really means it, he could file a lawsuit in any number of the primary states and then that would actually sort of put it in front of a court. But he's not going to do that because it's not a serious issue that he's raising.

[09:25:22] SETMAYER: And if it was such a serious concern, why didn't we mention this six months ago when there was a bromance between Trump and Cruz, and they were buddy-buddy. It wasn't until recently when Trump saw that Cruz was a real threat to him in Iowa. Now all of a sudden, it's a birther scandal. And also, I think they're doing this because Ted Cruz is resoundingly unlikable in Washington, D.C., within the party. The establishment cannot stand him. He has no friends in the Senate. So, when John McCain came out and made those comments, it was more to bring up, well, senators, and they passed a resolution for John McCain in 2008, but no one is rushing to do that for Ted Cruz, and wink, wink, because we don't like him. It was just something else to add on top to pile on in the Ted Cruz attack.

COSTELLO: OK. And I just want to touch on you know, I think these are intriguing numbers from this poll. When you look at hypothetical matchups in a general election, right? So Bernie Sanders beats Trump and Cruz. In New Hampshire, Sanders leads Trump, 56% to 37%. When it comes to Cruz, Sanders wins, 55% to 36%. Hillary Clinton leads Trump by 8 points but loses to Rubio and Cruz. So Errol, what do you make of that? LOUIS: Well, I make of it, first of all, but New Hampshire voters are

an unusual lot. That there are more people who are independent, meaning, not affiliated with any party, then they are either Democrats or Republicans, very independent-minded. They are voters who, I think, you know look. There's a lot of crossover appeal to Bernie Sanders, you know? And you don't have to be a partisan to sort of acknowledge that. The reality is, he chose not to be in the Democratic Party. He is an independent. He caucuses with them, but he's got some unusual ideas. And if you take, say, a typical Trump voter, they tend to be a working class. They tend to be a lower income. Bernie Sanders is offering quite a lot to those people. And whatever your political ideology is on immigration, or Muslims or anything else, the reality is, he's saying, free college tuition, higher minimum wage. He's talking about major infrastructure projects that actually create jobs. So there's a lot there that you don't have to be a Democrat to like a Bernie Sanders.

COSTELLO: All right, I'll have to leave it there. Tara Setmayer, Errol Louis, thanks so much.

Still to come in the "Newsroom." We are moments away from today's opening bell. How U.S. stocks fare amid more Chinese market turmoil.