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New Attacks on Israel; Microsoft to Lay Off Thousands of Employees; Armed Robbery Ends with Three Dead

Aired July 17, 2014 - 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: Thanks so much.

NEWSROOM starts now.

(BEGIN VIDEOTAPE)

COSTELLO: Happening now in the NEWSROOM.

TARIQ KHDEIR, AMERICAN TEEN BEATEN BY ISRAELI POLICE: Hello, everybody.

COSTELLO: Back home. Tariq Khdeir beaten by Israeli Police back in America this morning.

KHDEIR: I can't wait to go back and be with my friends and go fishing.

COSTELLO: The 15-year-old under house arrest for throwing rocks now free and speaking out.

UNIDENTIFIED MALE: No child, whether they are Palestinian or Israeli, deserves to die.

COSTELLO: Breaking overnight, a brazen bank robbery.

UNIDENTIFIED MALE: Stop and get the hostage. Get the hostage.

COSTELLO: And a high-speed chase ending in a hail of gunfire.

UNIDENTIFIED MALE: She was just, you know, an innocent bystander going to pull out money.

COSTELLO: In the end three people are dead and now there are questions over who really shot one of the hostages.

GEORGE HOWELL, CNN CORRESPONDENT: OK. So we're flying from Austin to Chicago and it's one of the bumpiest flights I've been on, ever.

COSTELLO: Bumpy ride.

UNIDENTIFIED FEMALE: Every flight that I get on gets choppier and choppier.

COSTELLO: How climate change is making the friendly skies not so friendly. And -- UNIDENTIFIED MALE: That's one small step for man --

COSTELLO: Landing on the moon.

UNIDENTIFIED MALE: One giant leap for mankind.

COSTELLO: Forty-five years ago.

Let's talk, live in the CNN NEWSROOM.

(END VIDEOTAPE)

COSTELLO: Good morning, I'm Carol Costello. Thank you so much for joining me. Israel and Hamas appear on the brink of war this morning, despite another attempt at a ceasefire, one that lasted just a few hours.

These are the latest pictures out of the region. The Israeli military says three mortars were fired from Gaza only two hours into that ceasefire. No one was hurt. Israel also says it stopped an attempt by 13 Hamas militants to infiltrate underground. They were using a tunnel. The Israeli military used an airstrike to destroy the tunnel.

Hours before the ceasefire began agony in Gaza City, though, over the deaths of four children killed while they were playing on the beach. Hamas is calling this a war crime. The kids, all cousins, were on that beach when an Israeli gunship opened fire near them.

Senior international correspondent Ben Wedeman joins us now with more on the story.

Good morning, Ben.

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, good morning, Carol. Yes, that incident happened 4:00 p.m. yesterday afternoon local time. What we've seen since then was a five-hour humanitarian ceasefire in which we saw lots of people come out to the street. Just downstairs there's a bank, we saw 30 or 40 people waiting to get out money. It was the first time that banks had been opened in 10 days, but yes, for those four boys on the beach in Gaza, that ceasefire didn't come soon enough.

(BEGIN VIDEOTAPE)

WEDEMAN (voice-over): They were killed on the beach Wednesday afternoon when the Israeli military targeted Gaza's harbor. The four boys, Ismail, Zakaria, Ahed and Mohamed, were cousins from the extended Bakr family ranging in age from 9 to 11. They were rushed to Gaza City's Shifa Hospital but it was too late.

An Israeli military spokesman says the incident is being carefully investigated and that preliminary results indicate, quote, "The target of the strike was Hamas terrorist operatives," unquote.

In just over an hour after their deaths, hundreds turned out for their funeral. Behind the angry chants, there is real grief. Eleven-year- old Mohamed's mother convulsed with shattered disbelief. "Why did he go to the beach and play, for them to take him away from me," she cries.

His blind father Ramiz is equally devastated. "I felt as if the world had come to an end when I heard the news," he tells me. "I wish I had died before hearing he was dead."

Of the more than 200 people killed in the last 10 days of Israeli bombardment, over 70 percent have been civilians, according to United Nations. Around 40 of the dead are children.

"Were those four small boys firing rockets?," Sufian, a relative, asks. "They went to the beach to play football."

The boys died on the sands of Gaza and in the sands of Gaza they were buried.

(END VIDEOTAPE)

WEDEMAN: Carol, there were Israeli and Palestinian negotiators in Cairo today discussing a possible ceasefire. There were initial reports coming out that a ceasefire -- a lasting ceasefire would go into effect at 6:00 a.m. Friday morning, but those reports were later denied, and now the word is that those negotiations have reached nothing at this point.

I notice the streets are clearing out, people are going back home. We've been watching plumes of smoke on the horizon, so unless the negotiators pull a surprise, we could have trouble in the coming hours -- Carol.

COSTELLO: All right. Ben Wedeman reporting live from Gaza this morning.

A Palestinian-American teenager beaten by Israeli police is back in America, back at home. A crowds of supporters cheered Tariq Abul Khdeir who had been in Jerusalem visiting relatives following the death of his cousin. Khdeir was at a protest when he was attacked. It was all captured on cell phone video, further escalating tensions in the region. Khdeir returned to America after completing his house arrest in Israel.

(BEGIN VIDEO CLIP)

KHDEIR: You only know my story because I'm an American but I hope you will also remember my cousin, a 16-year-old Palestinian named Mohammed Abu Khdeir. He was just a kid like me. And this whole thing started because he was killed. I know he must have been terrified like I was. I was in a new place and suddenly attacked by masked police. It was by far the scariest thing that has ever happened to me.

The physician said the physical pain in those first hours was really rough, and I'm only 15 but I will never think about freedom in the same way as I did two months ago.

(END VIDEO CLIP) COSTELLO: Khdeir was under house arrest in Israel because police there said he was taking an active part in the unrest, he was throwing stones and such. Khdeir and his family deny any wrongdoing.

Breaking news. Microsoft says it's prepared to lay off as many as 18,000 workers. This would be the largest layoff in Microsoft's history. This from a company that had $20 billion in sales in the first three months of this year.

CNN business correspondent Alison Kosik is at the New York Stock Exchange to tell us more.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning, Carol. So Microsoft is apparently just trying to be a leaner tech giant. Its CEO Satya Nadella laid out what his vision is going to be in a memo this morning where he announces these cuts and he says, "The first step to building the right organization for our ambitions is to realign our workforce. The overall results of these changes will be more productive, impactful teams across Microsoft."

So at the moment, the company has 127,000 employees, so this amounts to 14 percent of its workforce. Here's the thing, though. It got about 25,000 of those employees after it bought Nokia back in September and the biggest chunk of these cuts actually comes from Nokia, amounts to about 12,500 workers. Some of those positions are professional, the other are factory workers.

Now just keep this in mind, this sounds shocking, the 18,000, but it's very common for companies to cut jobs when they acquire another company, but the thing is, that Microsoft especially job cuts are rare, the last time Microsoft had a major cut it happened in 2009 the during the recession when it laid off more than 5,000 employees -- Carol.

COSTELLO: But, you know, some current and former employees do say that Microsoft has actually grown too large and too complex to compete with more nimble companies. Is that a valid criticism?

KOSIK: Well, I mean, you look at what Microsoft has sort of been through as we've seen this transition to mobile and you're -- what's happening now is Microsoft has been struggling to be relevant as mobile has really become huge, and you look at what happened when it introduced its tablet, the Surface, it was a huge failure so what Microsoft is trying to do is branch out, be more than a software company for personal computers. It's trying to become a stronger competitor to Google and Apple and the change has been slow for Microsoft.

So it's trimming its workforce to try to make itself stronger, but no doubt about it, Microsoft is still a money maker. It made a healthy $7 billion in profit in the first quarter, so many really look at this as a necessary reorganization, not necessarily a desperate move, though, by a failing company.

COSTELLO: Eighteen thousand jobs, that's a lot of jobs, though.

KOSIK: It is.

COSTELLO: Alison Kosik, many thanks.

Still to come in the NEWSROOM an explosion of gunfire echoed through a California neighborhood. A terrifying sound, a tragic end to a bank robbery. A hostage was killed in this event. We'll talk about that, just ahead.

(COMMERCIAL BREAK)

COSTELLO: Stunning new details this morning in a tragic end to a bank robbery complete with the robbers armed with AK-47s and hostages. Those bank robbers took off hostages in the car on a wild, high-speed chase through Stockton.

Listen to the gunfire along the way.

The gunfire ended, one of the hostages was dead.

CNN's John Berman has more for you.

(BEGIN VIDEOTAPE)

JOHN BERMAN, CNN ANCHOR, EARLY START (voice-over): Chaos in northern California as a violent bank robbery ends in a barrage of gunfire leaving one bank customer and two suspects dead. The events unfolded as three heavily armed men entered a bank, tied up a security guard and took three women hostage, before taking off on a stolen SUV with the police in hot pursuit.

UNIDENTIFIED POLICE: Ram him if you need to, to stop him or get him or something. If you can stop him, stop him.

BERMAN: The suspects had huge amounts of ammunition on them, according to police, who said the men had firearm magazines strapped to their bodies and fired on the officers relentlessly.

UNIDENTIFIED POLICE: There's a guy, number two male, sitting out the back window with a rifle, he's shooting at us with a rifle.

UNIDENTIFIED POLICE: Taking fire. We are taking fire.

BERMAN: Under the hail of gunfire, two of the hostages either jumped or were pushed from the suspect's vehicle. The witness managed to capture one of the moments on tape.

AUTUMN ALESSI, WITNESS: She was on the ground. My brother saw her roll over and her leg was all tore up and bleeding.

BERMAN: After more than an hour, the suspect's SUV was disabled, but that didn't stop the men who continued the gun battle with officers. Even, police say, using the last hostage as a human shield.

UNIDENTIFIED MALE: They were trying to kill our police officers.

BERMAN: In the end, all four people in the vehicle were shot. The hostage died of her wounds, though it's unclear when and by whom she was shot. The incident is under investigation according to police, who maintain they acted appropriately given the circumstances. Two of the suspects also died of their wounds and one was taken into custody.

(END VIDEOTAPE)

CAROL COSTELLO, CNN ANCHOR: John Berman reporting.

The key to safety is just one key, that's the message being put out by General Motors. The automaker is running this ad in several newspapers advising drivers of recalled cars to use just one key until every car with an ignition issue has been repaired. In the meantime in the next hour, GM's CEO Mary Barra will make her fourth appearance on Capitol Hill. She'll be grilled about the faulty ignition switches, but this time, she'll joined by the head of the company that made the switches linked to the deaths of at least 13 people.

Poppy Harlow has more for you.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNN CORRESPONDENT (voice-over): For the fourth time, the woman at the helm of General Motors is facing Congress. Lawmakers pressing Mary Barra about why the company delayed recalling 2.6 million cars with a faulty ignition switch for more than a decade. The defect proved deadly and an internal investigation uncovered what Barra called a "pattern of incompetence and neglect."

When Barra faced a Senate committee in April, it got heated.

SEN. CLAIRE MCCASKILL (D), MISSOURI: They and the American public were failed by a corporate culture that chose to conceal rather than disclose and by a safety regulator that failed to act.

HARLOW: GM admits at least 13 people died as a result of the faulty ignition switch, but says that number could rise. On Wednesday, "The New York Times" reported GM had more information about some of the deadly crashes than it shared with safety regulators, citing internal GM documents to regulators that it obtained.

Also in "The New York Times" Wednesday, this ad taken out by GM to remind drivers how to safely drive their recalled cars until they're fixed.

MARY BARRA, CEO, GENERAL MOTORS: This is a tragic problem that should never have happened and must never happen again.

HARLOW: This time around, lawmakers are grilling more than just Barra. Michael Millikin, GM's lead lawyer, is testifying, as well as the CEO of Delphi, the switch manufacturer. So is Anton Valukas, the former U.S. attorney who led GM's internal investigation, and Ken Feinberg, the man tasked with deciding compensation for victims and their families.

KEN FEINBERG, ADMINISTRATOR, GM VICTIM COMPENSATION FUND: GM has agreed and has delegated to me full authority. Once I make a final determination as to eligibility and dollar amount, GM, under the protocol, has to accept it. There are no appeals. GM can't question it. They've got to pay it.

HARLOW: Barra has apologized for the company's failure and says it stands by its pledge to compensate victims.

BARRA: I'm incredibly proud of what we're doing. It's the right thing to do and it shows our focus for the customer.

HARLOW: But for the families left behind, no amount of money brings their loved ones back.

LAURA CHRISTIAN, DAUGHTER DIED IN 2005 CHEVY COBALT CRASH: I still dream of my beautiful daughter as if she's alive.

UNIDENTIFIED MALE: It took the lives of a lot of people needlessly and I don't - I don't want them to forget.

(END VIDEOTAPE)

HARLOW: And, Carol, a lot of those family members will be at the hearing today. Also for the first time, the top lawyer at GM is going to testify. He's been at the company throughout this, and you can expect really tough questions for him from senators, including this -- why did GM's legal department settle with families for up to $5 million for ignition switch death-related cases, but never apparently tell the highest levels of the company? I think that will be key in this hearing.

Lawmakers had a chance to question Barra three times before, but they never had a chance to talk to the lead lawyer.

COSTELLO: Interesting. And also, Poppy, there was an article in "The New York Times" that is sort of the GM may have withheld information about those deadly crashes from regulators.

HARLOW: Right.

COSTELLO: Can you tell us anything about that?

HARLOW: Sure. What we can tell you is that "The New York Times" used the Freedom of Information Act to get some documents from NHTSA, the key safety regulators for cars on the road, right? And these death inquiries that they received, they received four of them in these ignition switch-related crashes. What they showed, according to "The New York Times" is that GM opted not to respond to questions from the regulator about what they knew about what may have contributed to some of these deadly crashes over the years.

Now, to be fair here, that's an optional, you have an option to respond, right? NHTSA doesn't force automakers to respond to this. That also falls on the side of the regulator, but apparently GM, "The New York Times" says, had police reports and other knowledge about some of these crashes, but according to "the times" did not give that over to regulators and the question becomes could you have known about this earlier? Could lives have been saved? I think you're going to hear that from lawmakers a lot today.

COSTELLO: I think so. Poppy Harlow, many thanks.

I'll be right back.

(COMMERCIAL BREAK)

COSTELLO: There are just 10 days left for Congress to find a solution to the crisis along the border, and anger is boiling over on both sides of the debate over how it should be handled.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They're not born here.

UNIDENTIFIED MALE: They're not born here either.

UNIDENTIFIED MALE: They need to go back to Mexico.

UNIDENTIFIED MALE: I'm protesting the invasion of the United States by people from foreign countries. This is about the sovereignty of our nation.

GOV. TERRY BRANSTAD (R), IOWA: I have empathy for these kids but I also don't want to send the signal that send your kids to America illegally.

(END VIDEO CLIP)

COSTELLO: Let's talk about that.

I'm joined by Abraham Diaz. Abraham is an undocumented immigrant who came to the United States when he was 9 years old. He's now attending the University of Texas as part of a problem that allows young immigrants to pursue education here in the United States.

Abraham, welcome.

ABRAHAM DIAZ, UNDOCUMENTED IMMIGRANT: Hello, Carol, and good morning.

COSTELLO: Good morning. And thanks so much for being with us. You've heard the anger. Where do you think that's coming from?

DIAZ: I personally think that these children, they need somewhere to stay. They are refugees. They are coming from violence, and they need a place to stay right now.

COSTELLO: Why do you think people are so angry that so many are coming here to find a better life?

DIAZ: That's a good question. There is no exact answer why somebody would like to not give a child shield or protection, and that's the way we should see it. Why would you not want to give a child some shield and protection from horrendous conditions in their country? COSTELLO: Well, many Americans might say they feel terrible for these

children, but the United States can't handle so many. What would you say to them?

DIAZ: That if we look at it at the human side and the way that there is trouble in their countries, you can see that they're not living well. They are in danger, and the only reason they're coming here to the U.S. is that for some shelter, for some security here.

COSTELLO: I've heard that the anger in part comes from Latinos taking American jobs. Have you heard that?

DIAZ: Yes, I've heard that, and it's very funny, because the only reason they're taking the jobs is because they're trying hard. What jobs are they taking? You don't see these undocumented people taking CEO jobs, high-position jobs. They're taking the low position jobs, the fields, the crops, the minimum wage, and it's funny that they're taking those jobs and we are complaining about it.

COSTELLO: Well, it is interesting, because, you know, Asian immigrants, you could argue that Asian immigrants are taking high- paying jobs. So why not express anger toward those groups as well?

DIAZ: Yes, exactly. And right now, we should express that they are coming, we should try harder and not let them take their jobs. We should fight for a better job maybe. We should not let them, because they are taking their jobs. You should try harder instead of just saying they are taking our jobs and we're going to give up here.

COSTELLO: There are also people who think you are, in part, to blame, because you give these kids hope, they think you should apply for citizenship or go home, because after all, you are an undocumented immigrant. What do you say to those people?

DIAZ: That I've been here. This is my country. Unfortunately, I was brought here at the age of 8. I went through elementary and middle school, high school, I am attending college.

I have worked hard, just like any American does, and I believe that I have the same opportunity that any American citizen should, because it all depends on how hard you try, and since I tried very hard throughout my life, I believe that I deserve where I am right now.

COSTELLO: And a final question for you: there are more than 50,000 children coming into the United States, and are currently detained. What should happen to those kids?

DIAZ: They should give asylum, because they are refugees, and this is what America does. America is the land that protects others.

COSTELLO: All of them?

DIAZ: As many as we can, because we can't say no to some and yes to some. We have to be equal. We have to say that we will be here for protection until there is something going on in their countries, until we find a solution to this. COSTELLO: Abraham Diaz, thanks so much.

I'm back in a minute.

(COMMERCIAL BREAK)