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Turkey Retrieves Audio and Video Evidence of Journalist Khashoggi's Murder; Steven Mnuchin to Attend Conference in Saudi Arabia Despite Concerns Over Journalist's Disappearance; Stocks Poised to Open Higher After Two Days of Turmoil. Aired 9-9:30a ET

Aired October 12, 2018 - 09:00   ET

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

[09:00:20] JIM SCIUTTO, CNN ANCHOR: A very good Friday morning to you. I'm Jim Sciutto.

POPPY HARLOW, CNN ANCHOR: And I'm Poppy Harlow in New York. We're glad you're with us.

In Mexico Beach, Florida, this morning the sun is up and out. The concern, though, is whether there will be any fatalities found here as the rescue workers and cleanup crews make their way in. FEMA administrator Brock Long told CNN this morning he fully expects the death toll which now stands at 11 to rise today and tomorrow.

SCIUTTO: Almost 48 hours after Hurricane Michael slammed this area with never-before-seen winds in that area, about 155 miles per hour winds, more than 12 feet of sea water, the scope of the devastation is still just coming into focus.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Well, our lives are gone here. You know, all the stores, all the restaurants, everything, there is nothing left here anymore. You know. All the homes on this side of the road, at the beach, they're all gone.

UNIDENTIFIED FEMALE: It was bad. It was bad. Never want to go through it again, ever. Next time I'm going opposite of wherever it is. I'm leaving.

UNIDENTIFIED FEMALE: I just can't describe the feeling. And I know I'm not the only one here that feels the same. They've lost everything.

(END VIDEO CLIP)

SCIUTTO: We still don't know the extent of the devastation. Why is that? Because the hardest hit areas are still barely reachable by phone or Internet. Let alone by road. More than 1.2 million homes and businesses don't have power.

CNN's Miguel Marquez is in Mexico Beach this morning. Really one of the worst hit areas.

Tell us what you're seeing there because I think it's hard without being on the ground to truly get a sense of the scope of this.

MIGUEL MARQUEZ, CNN NATIONAL CORRESPONDENT: In large parts, this town has been blasted off the face of the earth. 100 percent of it is affected. A large portion of it is literally scrubbed down to foundation.

I want to show you. This is Highway 98. You can see some of the people have started to come out here today. There is a boat in the middle of 98. There are boats all over town now. If you look over to the right, that is the top of a house that is now slammed into an apartment building or a condominium building. That building may look like it is in pretty good shape. It's not. All the doors, all the windows are blown off. The roof is completely blown off.

And as you look over this way, it is just the absolute -- a whole neighborhood that just washed away in just a massive storm surge. We have a mass cam up where you can see one area of town that's right near the public pier. There were lots of apartment buildings and that was quite built up and now it is all gone. Wiped clean. If you can make it out, there is an American flag right in the middle of it.

There is a few people that I have been speaking to over the last 24 hours. I want to introduce you to them. This is Robert Brock, this is Dawn Vickers and Robin (INAUDIBLE).

Your families are very worried about you. We had cell service for a little while. It went away but you don't even have cell phones.

Dawn, what has this been like?

DAWN VICKERS, LOST HOME DURING HURRICANE MICHAEL: This has been -- I don't even know if I have the words to describe it. It's been the worst nightmare I've ever been through in my life. Devastating.

MARQUEZ: You stayed here for the storm. Last night was very cold. I mean, what -- from that storm through last night, how difficult is life? Are you guys going to make it?

VICKERS: I hope we're going to make it. I feel we will. It's just -- it's very tough right now. We were -- they brought us here and left us at the gas station. Well, what was the gas station behind us. And we ran into some people that had a condo that was a little bit high and dry, drier than what I had been in.

UNIDENTIFIED FEMALE: Clean white sheet.

VICKERS: Yes. And a bed.

MARQUEZ: And you all stayed in this one condo last night?

VICKERS: Yes. Yes, we did.

MARQUEZ: Including Markey (PH), the service dog here, who's taken a liking to me. And this is your home?

VICKERS: Yes. MARQUEZ: What has happened to your home?

VICKERS: My home was taken off the foundation, cracked in two, and was floating away with my cars.

MARQUEZ: And Mexico Beach is your home.

VICKERS: Yes.

MARQUEZ: What has happened to Mexico Beach?

VICKERS: Mexico Beach is devastated. It's -- I mean, it looks like a war zone. I've never seen anything like it.

MARQUEZ: Your mother was able to get out. We hope that your families are seeing this or friends and that they will let them know that you guys are alive and well. Hopefully cell service will come back a little while later and people can start getting their messages out. But a lot of people, either their phones are gone, cars are gone, homes are gone, wallets are gone. It is going to be a long time from the very, very minute to the absolutely enormous to get this town back up and running again.

Back to you, guys.

SCIUTTO: No question. Of course the worry is that within that wreckage there, are there more lives lost? We're only going to know in the coming hours and days.

[09:05:06] Miguel Marquez, thanks very much.

HARLOW: Yes. That's an important point, Jim, as we heard Brock Long from FEMA say the death toll here is going to go up.

So we want to take you to the largest hospital now in Panama City. It's called the Bay Medical Sacred Heart. They are frantically working to evacuate all of the patients after taking major damage, which you see here. Ahead of the storm officials chose to stay open, hunkered down. The hospital, though, took a direct hit from Michael and now patients are being re-located as people are looking for medical care and some are being turned away.

Dianne Gallagher joins us there this morning.

Dianne, wow. Look at those pictures. What can you tell us?

DIANNE GALLAGHER, CNN CORRESPONDENT: Yes, Poppy, and you're talking about those patients being transported. If you can see this long line of ambulances, they are from all over the country. As far away as New Mexico in some cases. They are here to help transport the patients that are still at Bay Medical Sacred Heart and take them to places in Pensacola or places in Mobil, Alabama, Destin, Florida. Make sure that they are getting to places that aren't running on generators basically.

And the reason why is this. Right now Bay Medical is running completely on generators. It's the only type of power they had. There is no running water in Panama City, so the conditions are not ideal for any of the patients to remain here staying at the hospital.

Now 1500 people actually rode the storm out inside Bay Medical. The building that you're looking at right now that Jonathan is showing you, thank God there were no patients inside this when this storm hit. This is a receiving area. The problem is this is where a lot of the supplies are also held, I'm told by the CEO, including syringes, medical instruments. So they're not going to be able to use those things because they've been contaminated by things like water and dirt and other things that have come through here. I mean, it has been shredded by the storm.

Inside, while they were waiting, the roof came up. It lifted up. Water poured in. They had to move patients from one side because the generator started to go. There were too many patients on ventilators.

I want you listen to a doctor describe what it felt like to be in there.

(BEGIN VIDEO CLIP)

DR. AMIR HAGHIGHAT, CARDIOLOGIST, BAY MEDICAL SACRED HEART: A very scary few hours of howling winds, windows blowing in, crashing roofs, ceilings collapsing. But patients being cared for throughout all of it. You have these nurses, these respiratory techs, physicians and leadership in place, and they have been committed to this hospital for life. This is their life.

(END VIDEO CLIP)

GALLAGHER: Now they are staying here. The ER is still open, Poppy, so if people have emergencies. But a little bit later today we should have a D-med. That's that portable, full service hospital set up by government officials to help the community for injuries that may come.

HARLOW: OK, Dianne, thank you for all of this. You, all of our teams down there have been extraordinary. So thank you for working around the clock for us -- Jim.

SCIUTTO: Hurricane Michael did not spare churches either. Saint Dominick's has been a Catholic parish in Panama City, Florida, for 100 years. Still is but now its parish hall and bookstore are in ruins. The sanctuary and rectory damaged.

I'm joined now by -- on the phone by Father Luke Farabaugh of Saint Dominic's.

Reverend, thanks very much for taking the time this morning. First I want to ask you, I understand you haven't been able to reach everyone in your parish. Are you still concerned that some of their lives may be in danger?

FR. LUKE FARABAUGH, ST. DOMINIC CATHOLIC CHURCH PARISH PRIEST: Yes, that's right. We have been -- I mean, I have service right now, so I have been sending out text messages to some of our parishioners, and phone calls but it's just going to voicemail. So we are concerned still, especially with some of the apartment complexes and things like that. So there is very little we can do besides just keep on continuing to contact them and just really hope and pray at this point.

SCIUTTO: I understand that during the storm you yourself, you stayed, you hid in the stairwell. Tell us about the force of this storm as it blew through here.

FARABAUGH: Well, early on trees were going down and we were just simply watching the storm. But as they got -- you know, the eye wall came and the winds got stronger, we had to move to the stairwell and -- where there was no windows. And it was just -- the pressure was rising and dropping. Our ears were popping and cool air was rushing in. And it was pretty terrifying, actually, in those moments.

SCIUTTO: I'm sure. I'm sure it was. We've been seeing as you've been speaking to us, we're seeing pictures of the church there and all the damage that was done.

Let me ask you. I mean, this storm was stronger, was more powerful than expected. Are you concerned that you didn't -- your parish didn't receive enough warning of just how bad this was going to be?

FARABAUGH: Yes. It seems like all these hurricanes have a slow build-up and, you know, you have time to prepare, et cetera, but this seems so fast.

[09:10:07] It is really just -- I mean, I think a lot of us are still just in shock with the damage and just this -- I mean, it's really just it is surreal. It is really surreal. I don't think it's really set in how devastating and how much it's going to be involved in all of this and just the lives that are ruined. And it's just -- I mean, there is still hope, obviously, but it's going to be a long, long clean-up.

SCIUTTO: For sure. I know that folks watching this, they want to help as best they can. CNN has ways to do that on our Web site. But what help do you and your parishioners need most right now?

FARABAUGH: Yes. We -- well, thankfully, you know, we're able to help as well. (INAUDIBLE) clear so we're going to be distributing water. Catholic Charities is brining 18 wheelers with palates of water that we're going to be able to help out the community. So we're trying to also look for opportunities to serve rather than be served at this moment. But we're going to try to, you know, rebuild the church. And it's going to be a long process so any help with that is just always really appreciated.

SCIUTTO: Father, hang in there. We're going to be looking after you as best we can. We know that the time after the storm is often the toughest. We wish you the best of luck.

And we are staying on top of all the developments out of Florida. Plus sources telling CNN that Turkey has audio and video evidence of the Saudi journalist Jamal Khashoggi's murder. How will the president respond now?

HARLOW: Also happening this morning Pope Francis has accepted the resignation of the Archbishop of Washington, Donald Wuerl, this after weeks of outrage over Wuerl's role in clergy sex abuse scandal. He is believed to have known about those child victims of predator priest and covered it up.

We will also take you live this morning to the New York Stock Exchange looking from futures like the market will rally this morning after those two brutal days of a meltdown. We're on it.

(COMMERCIAL BREAK)

[09:15:00] JIM SCIUTTO, CO-HOST, NEWSROOM: This morning, sources telling Cnn that Turkish authorities now have video and audio evidence that journalist Jamal Khashoggi was killed inside the Saudi Consulate in Istanbul. Global Affairs correspondent Elise Labott with me now.

It's interesting, even as this evidence that the Turks say they have, and are sharing with their western partners, and we've seen lawmakers on the Hill who have been briefed on the evidence, Corker and others alarmed by this.

The administration, though, seems to be backing off with immediate response. We heard John Bolton this morning speaking to Hugh Hewitt, saying, well, we still have to see the facts. Trump saying he's sticking with arm sales --

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Right --

SCIUTTO: What are you hearing?

LABOTT: Well, I mean, two things here. First of all, they're saying that we need to hear the facts, see the facts, see an investigation. It would be inappropriate to, you know, completely blast them until we see.

But the president came out pretty far the other day saying, it looks like the Saudis are responsible. You've heard, as you said, so many lawmakers say that the evidence really points to --

SCIUTTO: Bob Corker, Lindsey Graham --

LABOTT: That's right, and --

SCIUTTO: Republicans.

LABOTT: And so it's a mixed message. We pretty much think that they did it, but you know, there's not that much we can do.

SCIUTTO: This administration has doubled down -- tripled down you could say on this -- on the Saudis in alliance against Iran in the region.

LABOTT: That's right.

SCIUTTO: Jared Kushner's peace plan in the Middle East --

LABOTT: Really dependent on the Saudis --

SCIUTTO: Dependent on the Saudis --

LABOTT: That's right, and I really think the administration is walking a tight rope right now, Jim. But you've seen international condemnation from the British, from the French, from others. I really think that this administration is going to come under a lot of pressure.

And, yes, you know, President Trump talks about jobs, the economy, all very important. But America has always stood for values and human rights. And I don't really think either Congress or the American people are going to stand by and let the relationship be business as usual if, in fact, the investigation, this evidence that we're hearing about from the Turks come out and this Jamal Khashoggi is -- was killed in that consulate.

SCIUTTO: And Congress has legal remedies perhaps under the Magnitsky Act, this has already been raised as well. Elise Labott, thanks very much. Poppy, back to you.

POPPY HARLOW, CO-HOST, NEWSROOM: OK, Jim, thank you. So joining us now is Republican Congressman Mike Turner of Ohio of Ohio, he sits on the House Intelligence Committee. Thank you for being with me. We have a lot to get to, it's good to have you in person.

As you know, they're reporting this morning that Cnn has -- is it Turkish authorities, say that they have not just audio, but also video confirmation, evidence, that Khashoggi; this journalist who has four children who are American citizens, who was a journalist for the "Washington Post" was murdered inside of the Saudi Consulate.

If that is the case, what should President Trump do about it?

REP. MIKE TURNER (R), OHIO: Well, I think in this -- several aspects of this that are very troubling that we have to put in perspective. And even if this was a domestic incident that had occurred in Saudi Arabia, and we'd still have grave concerns on the issue of human rights --

HARLOW: Yes --

TURNER: And what has occurred here and the responsibility. In this instance, so it's this extraterritorial action that where this is happening in another country that is even now much more troubling. A Turkey, a strong ally of ours --

HARLOW: And NATO ally --

TURNER: And NATO ally, and one benefit that we have is that Turkey and the United States have integrated intelligence --

HARLOW: Right --

TURNER: Infrastructure, so we're going to be able to share information at a level --

HARLOW: And frankly, this is what the intelligence is telling us. So what -- if this is the case, we know that it would have gone up to then Mohammad Bin Salman; it wouldn't happen if he didn't know about it, that's what intelligence officials are saying. If it's the case, what do you want the president to do about it?

[09:20:00] TURNER: Well, I think what you just outlined though is the next step. It is the -- once we have the issue of what occurred and that we have confirmation between the Turkish and the United States --

HARLOW: Right --

TURNER: Intelligence community is then who is responsible and then holding them responsible. Now --

HARLOW: So what is it, let's get into what that means because, you know, firstly, should the U.S. completely stop arm sales to Saudi Arabia, abandon the $110 billion arms sales agreement with Saudi immediately if there's evidence that this was carried out by the Saudi regime? It's really just yes or no.

TURNER: Well, right, and I would say no, and I would say no because it's not an issue of really value or cost. It's an issue of really Saudi Arabia is an ally, they're --

HARLOW: Wait --

TURNER: Aligned with us militarily --

HARLOW: So we should not --

TURNER: You know, we --

HARLOW: Stop arms sales?

TURNER: At this point, I would say no. The Saudi Arabia remains a very important ally in an area where we are working together in conjunction. Now, at the same time though, individuals have to be held accountable.

As you and I were talking earlier --

HARLOW: Yes --

TURNER: You have, you know, North Korea doing the territorial, you know, killing of Kim Jong-un's brother, you have Russia taking action in the U.K., and each instance we have increased sanctions, we've put pressure.

We cannot allow this to become the new international norm that we're beginning to see --

HARLOW: Look -- TURNER: Where people feel comfortable going into another nation.

HARLOW: It sounds like you agree with President Trump who said this week, no, stopping arm sales is not the way to punish Saudi Arabia for this. He said there are other things that can be done. His concern he said is U.S. jobs. But at what point, Congressman --

TURNER: Let's not match up --

HARLOW: But at what point do human rights trump everything else?

TURNER: Right --

HARLOW: At what point do you say, no, we are not going to fund -- we are not going to fund your protection and we are not going to sell you arms?

TURNER: Right. I disagree that we should ever look at arms sales as a jobs issue. Arms sales are an issue of where we look at interoperability, we look at modern -- someone works as an ally with us, whether we have joint military and international security concerns and issues that we're trying to address.

That's what military sales that we look to. We know also it's not as if the United States exits in military sales and if military sales are not going to occur, it means that it will be that Russia, that China will fill that gap and then also that interoperability, that cooperation will --

HARLOW: But --

TURNER: Lessen --

HARLOW: It's interesting --

TURNER: But --

HARLOW: You're making the point that the president you disagree with him that in order to maintain U.S. jobs continue to --

TURNER: It's not a job issue, should never be a --

HARLOW: Right --

TURNER: Job issue.

HARLOW: Steve Mnuchin; Treasury Secretary just told "Cnbc" a few minutes ago, he was asked if he still plans to attend the future investment initiative in Riyadh, and he said yes, at this point, he is still going.

As you know, media outlets have pulled out, Cnn has pulled out, the "New York Times" has pulled out, companies are pulling out, Richard Branson is pulling out. Should the U.S. Treasury Secretary, given the state of affairs and given what has led -- at the hands of Saudi Arabia still go to that conference in Riyadh. TURNER: Well, I think you should very seriously consider whether or not he should. I think the aspect --

HARLOW: Would you go knowing what you know today?

TURNER: Absolutely not. I think the -- what we have to do is take a pause here and complete the assessment with our strong intelligence partner, Turkey, and get to the bottom of not only what happened, but who is responsible and then hold them responsible.

We can't allow what is happening of nations feeling comfortable going into another nation and taking these type of brazen human rights violations. And that's happening now at --

HARLOW: So --

TURNER: An increased level --

HARLOW: Around the world --

TURNER: So we need, and it's changing what our basic human values are and our understanding --

HARLOW: So --

TURNER: Is of the international community --

HARLOW: Given that point about basic human values and human rights, the president goes to your home state, Ohio tonight. He holds a big rally in Cincinnati, what do you want him to say about human rights, about what America stands for, about Saudi Arabia, given all the U.S. intelligence knows now?

Given the fact that U.S. intercepts knew at least that Saudi officials were discussing a plan to capture this journalist. At a minimum they knew that. So what should the president say because of the optics here. He went to Saudi Arabia, his foreign trip, he danced, you saw the sword dance with the president.

What does he need to say to the people of Ohio --

TURNER: You know --

HARLOW: About where we stand as a country on human rights tonight?

TURNER: We also -- I mean, have every president. Obama as you know, had you know, meetings that where we were all very concerned about what the body language was between the president --

HARLOW: I understand that, but I'm talking about --

TURNER: In Saudi Arabia --

HARLOW: What we know today, right?

TURNER: Well, and even then, we've always had concerns about human rights with respect to Saudi Arabia.

HARLOW: Yes --

TURNER: So, I think though -- but what you want to hear from a president is the fact that basic values of the United States are committed to freedom and to the security of those who seek freedom. You know, what's troubling also about these extra territorial actions that are taking to violate people's human rights, these are not, you know, terrorist actors.

These are not international security actors, these are silencing voices of individuals who are in opposition and --

HARLOW: Yes --

TURNER: Who are in --

HARLOW: So --

TURNER: Who are critics. That's what makes also this that much more troubling because it's a shift that we're seeing --

HARLOW: Yes --

TURNER: Around the world that we need to stop.

HARLOW: I need to wrap it up, we're out of time. I appreciate you being here, it sounds like you want to hear a strong message from the president on this tonight in your home --

TURNER: Sure --

HARLOW: State, thank you, nice to have you --

TURNER: Thank you for seeing me.

HARLOW: All right, Jim, I'll send it back to you.

[09:25:00] SCIUTTO: Coming up next, we head to Wall Street where we may hear some signs of relief. In just minutes, stocks set to rebound at the open, we're going to be live for the opening bell.

(COMMERCIAL BREAK)

HARLOW: All right, welcome back. We are moments away from the opening bell on Wall Street. Futures is pointing higher after two days of major turmoil for the market. The Dow falling more than 1,300 points in the last two sessions. Let's go to our business correspondent Alison Kosik from the New York Stock Exchange.

So why are stocks looking better this morning?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes, first of all, I've got to point out, it's like whiplash, the bounce back --

(CHEERS) Expected after those masses losses on the Dow when we saw the Dow

dropping more than 1,000 points in two sessions.

(BELL RINGING)

And what's the big driver for the bounce back? Fourth of earnings, third quarter earnings season getting underway today.