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Egypt Calls for Unified Arab Force; Terrorism Threatening Mall of America; White House Wants Stay on Federal Judge Ruling; Closing Arguments Canceled in American Sniper Trial; Largest Oil Refinery Strike in 30 Years

Aired February 23, 2015 - 09:00   ET

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


CAROL COSTELLO, CNN ANCHOR: NEWSROOM starts now.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): Happening now in the NEWSROOM, despite the threat, Americans still shop. The same group behind a deadly Kenyan mall attack suggests something similar could be coming to the United States.

Rudy Giuliani changing his tune after questioning this president's heart for days. Now America's mayor says insulting Obama was not his intention. Too little too late?

Plus --

PATRICIA ARQUETTE, ACTRESS: We have fought for everybody else's equal rights. It's our time to have wage equality once and for all.

COSTELLO: Women stealing the show at the Oscars, equal rights taking center stage on Hollywood's biggest night.

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.

A key U.S. ally in the Middle East wants to raise the stakes. Egypt's president says it's time for the Arab nations to unite in a massive joint military force. Its mission, crush ISIS and the threat that's festering across the region. But this morning there are no details and a lot of questions about how such a force would operate.

CNN's Ian Lee live in Cairo today.

Hi, Ian.

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: Good morning, Carol. The speech was given last night by the president to the Egyptian people, a State of the Union of sort, talking about in the beginning the threat that ISIS poses to the Middle East. Egypt faces ISIS on their eastern border as well in the west in Libya. He confirmed that Egypt had 13 air strikes against ISIS targets.

In this speech, so he called for the need for a united Arab force to confront ISIS. He says that it is desperately needed. Now they didn't give any -- any picture of what this force would look like. The Egyptian presidency also not giving many details about what they're calling for.

The Egyptian president, though, in his speech said that the Egyptian army's main goal, their goal is to protect the borders of Egypt. But, if they're needed in the region, that they would be -- that they would act in cooperation with their Arab brothers.

Now this sort of call has been made before, decades ago. Arab -- Pan- Arabism nationalism isn't something new but this new threat of ISIS touches almost every Arab country in the region. This is likely to be -- it is the popular call here in Egypt. We'll wait to see what the other Arab capitals say, although Arab leaders are not known for their unity when it comes to really big decisions like this.

And it will take a lot. And I need to emphasize that, a lot of diplomatic talks to get something like this really off the ground -- Carol.

COSTELLO: And Ian, we're just getting word that Egypt has shut down its embassy in Yemen. Can you tell us more about that?

LEE: Yes. We know that they shut it down today, citing security concerns because of -- after the Houthi rebels took the capital from the government, the Egyptian government not believing that their diplomatic personnel aren't safe there.

And also important to note that in Yemen, al Qaeda has a very strong presence there. Egypt has been battling them as well. So they pulled their diplomatic mission -- Carol.

COSTELLO: All right. Ian Lee, thanks so much. Reporting live from Cairo this morning.

In Syria, U.S.-led air strikes killing more than 1600 people in the past five months. That's according to the London based Syrian Observatory for Human Rights. The reports that most but not all of the victims were ISIS militants. They say at least 62 civilians including eight children and five women have died in coalition air strikes.

The parents of slain ISIS hostage Kayla Mueller breaking their silence, telling NBC News about the horrific 18 months they spent trying to save their daughter. And the family's first public comment since learning their daughter died earlier this month, the father said he believes they had a chance of freeing Kayla.

(BEGIN VIDEO CLIP)

CARL MUELLER, KAYLA MUELLER'S FATHER: I really feel that we had a chance to get Kayla out because we were in communications with them, unlike the other families. But how do you raise $6.2 million? And pretty much made it impossible. But we feel they really did want to release Kayla.

(END VIDEO CLIP)

COSTELLO: Officials say a number of rescue and negotiations attempts to free Kayla failed after she was kidnapped in northern Syria in 2013.

Ukraine's cease-fire is in complete shambles.

Adding to the chaos, a bomb at this rally in eastern Ukraine, killing two people on Sunday. The rally marking one year since the uprising that killed 100 protesters and led to the fall of a Moscow backed president.

Ukraine says heavy artillery will remain on the front lines until shelling from pro-Russian rebels comes to a complete stop.

A new terror threat against U.S. shopping malls but that did not stop Americans from flocking to one of the potential targets. It's been business as usual at the massive Mall of America outside Minneapolis. Just hours earlier, terror group al-Shabaab said it could be the site of another massacre, similar to its siege on a Kenyan mall that killed dozens.

Terror experts say the Somalia-backed group doesn't have a reach for a similar attack in the United States. The greater threat, they say, is a lone wolf recruit.

(BEGIN VIDEO CLIP)

JEH JOHNSON, SECRETARY OF HOMELAND SECURITY: I am very concerned about the serious potential threat of independent actors here in the United States. We've seen this now in Europe. We've seen this in Canada.

GLORIA BORGER, CNN ANCHOR: But specifically against the Mall of America.

JOHNSON: Any time a terrorist organization calls for an attack on a specific place, we've got to take that seriously.

(END VIDEO CLIP)

COSTELLO: Strong words from the secretary, raising eyebrows and prompting some law enforcement agencies to stress there is no credible threat.

CNN's Erin McPike caught up to Jeh Johnson later in the day.

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ERIN MCPIKE, CNN CORRESPONDENT: Some law enforcement officials walking that back a little bit saying there is no specific, credible threat. I know what you just said, but do you regret any of the comments you made this morning?

JOHNSON: No. No.

(END VIDEO CLIP)

COSTELLO: So let's head to the Mall of America and CNN's Nick Valencia who joins us live.

Good morning, Nick.

NICK VALENCIA, CNN NATIONAL CORRESPONDENT: Good morning, Carol. Certainly a chilling message posted over the weekend online by the Somali terror group, al-Shabaab, warning of potential targets in the United States, Canada and the United Kingdom, among them listed is West Edmonton Mall in Alberta, Canada, and this mall here right behind me in Bloomington, Minnesota, the Mall of America.

And the Mall of America spokeswoman, sent out a statement over the weekend responding to that video saying that they are taking extra security precautions some that might be visible to shoppers, others not so much.

Our affiliate WCCO went inside that mall over the weekend and spoke to shoppers about the potential threat.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I'm just like, if it happens it happens.

UNIDENTIFIED FEMALE: Yes. I'm scared because I have kids. You know, I have two little ones and I'm pregnant. So coming here today was like -- I don't know.

(END VIDEO CLIP)

VALENCIA: Now it is worth us noting the Department of Homeland Security says that there is no working threat. No credible threat that they know of but they are urging shoppers especially here at the Mall of America to remain vigilant, as they always do.

Also I spoke over the weekend, Carol, to members of the Somali community, specifically to one community leader who called the message by al-Shabaab shocking and traumatizing. He says back in 2013, if you remember, there was somebody here from Minneapolis that participated in that attack on the Westgate Gall in Kenya.

They said the community is still reeling from that. He also went on to say that al-Shabaab does not speak for the majority of Somalis especially here in the community. But the concern, just like it is with federal officials is that this video may inspire some lone wolf sympathizers with al-Shabaab -- Carol.

COSTELLO: All right. Nick Valencia, reporting live from Minneapolis today.

Still to come in the NEWSROOM, the immigration battle rages on in Washington. CNN justice reporter Evan Perez is covering that for us this morning.

EVAN PEREZ, CNN JUSTICE CORRESPONDENT: Good morning, Carol. The Obama administration is getting ready to launch a legal fight to defend the president's immigration order. We'll tell you more about this fight right after the break.

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COSTELLO: The White House today seeking an emergency ruling to block the order postponing President Obama's executive order on immigration. The Department of Homeland Security was originally scheduled to begin accepting applications last week for the expansion of several of the controversial immigration programs.

But a federal judge's last-minute decision said the administration failed to comply with a provision that calls for a longer notification and comment period before taking action.

CNN's justice reporter Evan Perez joins me now with more on this.

Good morning.

PEREZ: Good morning, Carol. The Obama administration is going to file this request for an emergency stay of this order by Judge Andrew Hannon. We expect that that's going to be filed in the next few hours. The problem here is that they're going to ask the same judge to put a stay on his own order, which stopped the Homeland Security Department from keeping -- from preparing to implement the president's immigration order.

And so that's why experts believe this is a long shot for this judge to put a stay on his own order. After this, the administration is likely to go to the Fifth Circuit, which is in New Orleans and considered a conservative court. So you can see here that there is an uphill climb for the administration, as they face -- you know, the clock is running out on this administration next year. And so they really want to start working on this order before time runs out.

COSTELLO: So what's the game plan if a stay is not granted?

PEREZ: Well, you know, the White House says that they firmly believe that they're going to win this one.

Here's Josh Earnest talking about this on Friday.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: The U.S. government will be appealing the decision. And the reason for that is we continue to believe that there is a solid legal foundation for the steps the president has taken, to bring some accountability to our broken immigration system.

(END VIDEO CLIP)

PEREZ: Carol, they believe that they're going to -- in the end they're going to win this fight. The problem obviously is that the president's term is ending next year and if this legal fight stretches into next year the issue will be how many of these immigrants, the five million of them, who are living in the shadows, are going to come forward and give their name to the government with the chance the next president might change their mind about this executive order -- Carol.

COSTELLO: All right. Evan Perez, reporting live from Washington, thank you.

And this note, the Department of Homeland Security will hold a news conference this afternoon. The secretary, Jeh Johnson, will discuss the concerns over the agency's funding that's due to run out later this week. That's scheduled for 2:00 p.m. Eastern. CNN will carry it live.

Still to come in the NEWSROOM, did he know right from wrong? That's what jurors will have to decide in the "American Sniper" trial.

CNN's Martin Savidge is live in Texas today.

MARTIN SAVIDGE, CNN CORRESPONDENT: Good morning, Carol. Yes. Just as this controversial trial was getting ready to come to a big ending, there's a last-minute surprise.

I'll tell you what it is after the break.

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COSTELLO: Closing arguments canceled today in the 'American sniper' trial due to the weather. CNN's Martin Savidge is live in Stephenville, Texas, covering the trial for us. Tell us more, Martin.

SAVIDGE: Morning, Carol. Well, this winter weather that moved in, we're actually under a winter storm warning here in Stephenville Last week, temperatures, 60s and 70s, today it's barely going to get out of the mid-20s. And on top of that, they've had freezing rain and snow. So the judge made the decision earlier this morning that court would be canceled completely this morning, which is too bad because it looked as though that there was only going to be one more rebuttal witness that would come up for the prosecution, then after that, we might go to closing arguments and then, of course, it would be handed to the jury to make a final decision. But all of that now must wait at least 24 hours. Carol?

COSTELLO: You mentioned before there was a surprise. What was that?

SAVIDGE: Well, Mother Nature. No one really thought that this trial was going to be delayed in this particular way. So Mother Nature has dealt this particular blow. I should point out that, you know, you mentioned it earlier, which is the decision that this jury has to make is not the one juries typically made, which is did the defendant carry out the crime he's accused? There is no disagreement on that. We know that Eddie Routh did carry out the murders of these two men. The question is, was he in his right mind? The prosecution is saying, yes, he was in his right mind, he knew exactly what he was doing, and case and point, he tried to get away. Meanwhile, the defense is saying, no, he did not know what he was doing. And their experts have testified, look, he was ranting about how pigs were going to take over the world and that he feared that the two men were going to murder him if he didn't kill them first. So that is some very difficult stuff for the jury to weigh over, and there are some reports that the jury will be sequestered once they begin their deliberations. Carol?

COSTELLO: Martin Savidge reporting live from Texas today.

Don't forget to tune into a CNN Special Report, "BLOCKBUSTER: THE STORY OF AMERICAN SNIPER." That's tonight, 9:00 Eastern, right here on CNN.

Still to come, Rudy Guiliani clarifies his criticism of President Obama. His new op-ed, next.

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COSTELLO: It is the largest oil refinery strike this country has seen in over 30 years. More than 6500 workers at refineries across the country have simply walked off the job because of a dispute over contracts and more. You could be paying the price at the pump, I should say.

Chief business correspondent Christine Romans is following that story for us this morning. Good morning.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Hi. So United State workers union and these producers, these refiners, and they have contract maintenance work at some of these refineries and the union leaders and union members are mad. They say the work could be done better by union workers. It is a union dispute, a labor dispute. And you have 6500 who are off work right now. Most of these refiners are saying that they're still operating, they're using managers and engineers instead, they're using trained replacements. But it is a very big strike, the biggest we've seen in 30 or 35 years in the U.S. and comes at a very important time for the industry. We've seen gas prices rising. This is independent of what we're seeing here, the experts are telling us. But gas prices have been rising. You've noticed over the past week, you're paying an extra $0.05 over the past month maybe, or paying an extra $0.25, $0.27. Compared to last year, it's still down quite a bit, but they're moving over to the seasonal blend for the summer that is better for the environment, a different kind of gasoline and you tend to see gas prices rise in the spring and that's what we're seeing right now.

COSTELLO: How much could prices rise if the strike drags on?

ROMANS: I'm hearing mostly another $0.05 right now, another $0.10 maybe. It all depends on how this strike is resolved. We had a big port strike that just was resolved this weekend. You saw a backlog there. But very quickly, they will try to get through that backlog. To me, they're very separate issues, but it's interesting to me that you're seeing sort of labor disputes coming up again around the country. People feel like their work, in some cases, isn't being valued the way they want it to be valued. People are vocal about wanting to benefit or participate in a better economy. So I don't know. I'm watching - there's very separate issues. The one on the West Coast has been resolved. It depends on how long this one will be resolved to see what happens with gas prices long-term. So far, they're still refining the crude and so as long as they keep refining the crude, then it wouldn't affect gas prices.

COSTELLO: Christine Romans, thanks, as always.

ROMANS: You're welcome.

COSTELLO: I appreciate it. I'll be right back.

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