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Rebel Group Controls Presidential Palace in Yemen; President Delivers State of the Union Address; Interview with Senator Thom Tillis; Interview with Valerie Jarrett

Aired January 21, 2015 - 08:00   ET

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

(BEGIN VIDEOCLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The shadow of crisis has passed and the state of the union is strong.

(APPLAUSE)

UNIDENTIFIED MALE: It is time to move on beyond President Barack Obama.

UNIDENTIFIED MALE: I wish I had better news for you. All is not well in America.

UNIDENTIFIED FEMALE: Americans have been hurting.

OBAMA: I have no more campaigns to run. I know because I won both of them.

(APPLAUSE)

(END VIDEO CLIP)

ANNOUNCER: This is NEW DAY with Chris Cuomo, Alisyn Camerota, and Michaela Pereira.

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome back. This is your NEW DAY, Wednesday, January 21st, just after 8:00 in the east. President Obama says the state of our union is strong, but so are the countless terror groups active and only getting stronger around the world.

ALISYN CAMEROTA, CNN ANCHOR: And one of those groups is in Yemen. This morning the Yemeni government, a critical ally of the U.S., is on the brink of collapse. Rebels staging a coup, taking control of the presidential palace, forcing the U.S. to position two U.S. Navy warships in the event that evacuation is necessary. Earlier on NEW DAY Maine Senator Angus King said that it is time to evacuate.

Our team coverage begins with CNN senior international correspondent Nick Paton Walsh. He's the only western journalist in Yemen. He joins us live. What's the latest, Nick?

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Alisyn, we've just come back from the presidential residence that separates the presidential palace which was overrun by the Houthis yesterday as they began to state control effectively over the leaders of government here.

The presidential residence is a different story. The president is still inside we understand. We don't know who's with him, but the guard who would normally be around the outside of that residence, they're gone. And in their place a number of sometimes pretty young Houthi militants, relaxed, calm, one of them actually in control of a tank there. And they seem to be the ones who say that they are now the president. One of the men we spoke to out there has just won the Houthi militiaman. We asked him who is the president. He said, we are, the people are.

So a sense of real balance in flux here. I should point out that the Houthi leader Abdul-Malik al-Houthi in a speech yesterday still referred to President Hadi. So there's no obvious desire for the Houthis at this stage for him to change his job title. But what we are looking at is a situation where the president is certainly being, they say, protected by the Houthis. I haven't heard from his office how he feels about that situation, but he's certainly not going anywhere at the moment, Alisyn.

CAMEROTA: Nick Paton Walsh, it is wonderful to have your front row reporting. Thank you. We will monitor this throughout the morning, of course.

As the situation in Yemen becomes more dire there are growing calls to evacuate American personnel from the embassy immediately. So why isn't that happening? Let's go to Barbara Starr. She is live at the Pentagon. What are you hearing, Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning, Alisyn. At this hour there is a debate at the highest levels of the administration about what to do. On the one side you have the State Department and the CIA who hope they can stay, the embassy can stay open. It is not just a diplomatic outpost, but behind the scenes in Yemen the embassy is a valuable intelligence listening post for collecting intelligence about Al Qaeda in Yemen. There are intelligence operatives for the United States who work in Yemen. There are U.S. military commando teams who use the embassy as a base of operations. So it is vital for them to have that outpost. The State Department right now doesn't want to be seen as abandoning President Hadi.

On the other side, you have the Pentagon who says if the decision is made to evacuate, go now while it potentially is still safe enough for diplomats to drive to the airport and get on commercial flights. Not at all clear those roads are still safe to go to the airport. The military says if they have to go in and evacuate it will essentially be very difficult. They'll have to have air cover. It will be a full blown military operation. One official saying to me you've got to go while the going is good. Michaela?

MICHAELA PEREIRA, CNN ANCHOR: Time is clearly the essence. All right, Barbara Starr, thank you for that. President Obama taking his State of the Union agenda on the road

today. The first stop, the red state of Idaho. It was a bold, unrestrained president who addressed the nation last night, calling for tax hikes for the wealthy, a fair shake for the middle class, and a better brand of politics from Congress moving forward. Let's bring in our White House correspondent Michelle Kosinski. Now he's taking it on the road, Michelle.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: He is. Hi, Michaela. The White House says they are pleased, very pleased with the way the speech was received. This is the State of the Union address that the president has been wanting to make. The White House says now for once the economy is strong enough that he can really focus on these initiatives for the middle class, defiantly making a case for them last night, and for working with Congress, of course within limits.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Mr. Speaker, the president of the United States!

(APPLAUSE)

KOSINSKI: President Obama strode into what some called hostile territory of the now Republican-controlled Congress. This was intended to be a different kind of State of the Union.

OBAMA: Tonight we turn the page. The shadow of crisis has passed and the State of the Union is strong.

KOSINSKI: His first standing ovation was for saluting American troops, another big one on the economy.

OBAMA: Over the past five years our businesses have created more than 11 million new jobs.

KOSINSKI: This speech was less a laundry list of new things to try over the year and more a determined philosophical case for those goals -- immigration reform, free junior college, the president's tax proposal that Republicans propose to take a bigger chunk from the wealthiest merges and benefit for the middle class.

OBAMA: If you truly believe you can work full time and support a family on less than $15,000 a year, try it.

(APPLAUSE)

OBAMA: If not, vote to give millions of the hardest working people in America a raise.

KOSINSKI: The president's urging to make federal childcare a national priority got a few women on the Republican side standing. On foreign policy, a vow to fight terror.

OBAMA: We will continue to hunt down terrorists and dismantle their networks. KOSINSKI: Members of Congress collecting pencils in solidarity with

French cartoonists for free speech, and this poignant moment in the president's argument for lifting the Cuba trade embargo.

OBAMA: And after years in prison we are enjoyed that Alan Gross is back where he belongs. Welcome home, Alan. We're glad you're here.

(APPLAUSE)

KOSINSKI: President Obama reiterated his veto threats but also spoke for crafting a better politics in America.

OBAMA: Imagine if we broke out of these tired old patterns. A better politics is one where we debate without demonizing each other.

KOSINSKI: And politics made for an unintentionally funny wrapping up.

OBAMA: I have no more campaigns to run. My only agenda --

(LAUGHTER)

OBAMA: I know because I won both of them.

(APPLAUSE)

KOSINSKI: And the Republican response, freshman senator and war veteran, Joni Ernst.

SEN. JONI ERNST, (R) IOWA: Americans have been hurting, but when we demanded solutions, too often Washington responded with the same stale mindset that led to failed policies like Obamacare.

KOSINSKI: Pledging that Americans heard the message in the midterm elections and will pass what she calls serious ideas for the economy.

OBAMA: Let's begin this new chapter together and let's start the work right now.

(END VIDEOTAPE)

KOSINSKI: And one big question has been, even if any of these proposals were to be accepted by Congress, how exactly does the president plan on funding them? Well, we expect him to present his budget within the next few weeks. Chris?

CUOMO: The least of his concerns, Michelle Kosinski. Thank you very much for the reporting.

Joining us is Senator Thom Tillis. He is a freshman Republican from North Carolina who sits on the armed services committee and the committee on veterans affairs as well as the committee on the judiciary. Thank you very much for joining us, senator. Of course we're going to talk about what you heard last night, but there is a situation that demands our attention. What's going on in Yemen? They're not around the president's residence. They don't have full control of the government itself, but the Houthis have the palace. They're moving quickly. They seem stronger than the opposition, the military. Do you think the U.S. should get its people out of the embassy?

SEN. THOM TILLIS, (R) NORTH CAROLINA: I think we should listen to the Pentagon and people who are closest to the facts on the ground. If the Pentagon says now is the safest time to get Americans out, then they need to take that into account. What we don't want to do is increase the threat of harm to Americans and American soldiers by waiting too late. We just need to be focused on what's on the ground and do as soon as the people on the ground, the people that have the intelligence, tell us to do.

CUOMO: That is what our reporter at the Pentagon is saying, that if you want to get out, you should be doing it before it is perilous, it is dangerous to get people out. Now would be the time. The balance to that, senator, is obvious. You don't want to show that you're fleeing the president there and the current government. Which comes first?

TILLIS: Well, I think the safety and security of the American people come first. There are people on the ground there. We've made mistakes like this in the past by waiting too late. And I think that we just need to make sure. The timing I understand and the diplomatic issues weigh into that, but nothing outscores the priority of protecting the Americans on the ground in Yemen.

CUOMO: All right, well, hopefully this is something that stays urgent. We don't want to come at this story from the aftermath of not doing it right. Thank you for giving us your take on that. We look forward to seeing what action happens there.

All right, let's put up the poll of people who watched, very unscientific, last night, the people who were watching. Obviously that's a stilted group. Yes/no on pre and post-speech dealings on whether the president's policies will move us in the right direction. The numbers were high. Pre-speech they were high, post-speech they were much higher, 72 percent saying, yes, they will. The opposition response from Joni Ernst obviously very different. She says that these people are wrong. Do you believe that the people are wrong in this poll, senator? Do you think the president's policies will move us forward?

TILLIS: Chris, I think the problem or the reference points that were used to actually build the case, we talked about gas prices being lower. They're higher than they were when the president was sworn in. We're talking about unemployment being lower. The labor participation rate goes back to -- if you were to weigh that in to the old way of checking unemployment, we would be three or four percent higher. Saying deficits is down is one thing, but the reality is we've got a historic debt and we're just adding to the debt at a slower pace. I think the American people need to understand that what the president has proposed sounds good but it's unsustainable.

CUOMO: Gas prices are being touted as being the lowest in recent history. Oil hasn't seen these in forever. Do you think gas prices are a good reference point for the economy not recovering? TILLIS: I think the gas prices are low not because of the president's

policies but in spite of them. And they're artificially low. If you take a look at other nations like Canada, they are investing and they're trying to do everything they can to keep production higher while other countries are subsidizing their oil industries to keep the prices lower, to try and force the United States and Canada out of what can be within our reach, energy independence.

CUOMO: But you know very well the U.S. has never been putting out the kind of oil that it is right now, not in terms of recent history. Is that a good basis for pushback on the president? You know, with fracking and sand oil you're making more than you have in a very long time.

TILLIS: Right. But we've never really done what we should to explore and extract in an environmentally sound way energy resources. We need to become an independent energy super power. We have it within our reach to do that. And these reference points, again, are because we've been historically bad at actually doing a good job of becoming energy independent. That's what I mean by the kind of false reference points in the speech last night. I don't think it's giving the American people a clear picture of the challenges that we have and the opportunities that we have.

CUOMO: Let's put up your statement here that you released responding to the president's speech. You wrote, "Partisan gridlocks make things harder, not easier for the American people, and Washington has not produced results." Nobody is going to disagree with that except your brothers and sisters that you're about to join in Congress because they all seem to hide from their own inertia. However, hearing you now, you do seem to be sounding a lot like everybody else, which is whatever the president says is good you say is bad. Is that the way forward, senator?

TILLIS: No, I don't think so. You know, I came from a legislature that had a Democratic governor and Republican House and Senate. We found a way to work together. We just decided to check the things at the door where we weren't going to agree. We worked on energy policy, we worked on tax policy, we worked on regulatory policy. And that's why North Carolina is doing well compared to the other states. We need to do that for the nation. Recognize I'm not going to embrace a majority of what President Obama stands for. He's not going to embrace a majority of what I stand for. But there's a lot in the middle we can do to cooperate and get the economy back on track and make the world and make the country safer and more secure.

CUOMO: That will be well received by the voters, senator, because there are many in Congress right now who believe that doing nothing is serving the people's interests, and that's hard for Americans to swallow. It's good to hear you saying something different. Senator Tillis, good luck to you in the work ahead.

TILLIS: Thank you, Chris.

CUOMO: What do you think? What did you think of the president's speech? Which side do you think handled it better? What do you think the realities are? Tweet us at NEW DAY or go to Facebook.com/NewDay. Michaela, over to you.

PEREIRA: All right, France is unveiling plans to ramp up its security in the wake of recent terror attacks. The French prime minister said some 3,000 people in France with ties to jihad need to be under surveillance. The country also plans to toughen its intelligence services, spend some $490 million to boost the fight against extremism.

In the meantime this brand new surveillance video obtained by CNN appears to show slain terrorist Amedy Coulibaly and his wife walking by a Jewish institution this summer. Sources tell us the couple may have been looking for possible targets for several months.

CUOMO: Breaking overnight, a stabbing spree on a bus in Tel Aviv. It's now being called a terror attack. Israeli police say a Palestinian man stabbed at least nine people, seriously injuring one of them. Police say they shot the attacker in the leg once he got off the bus and then arrested him. Security has sharply increased in Tel Aviv as a result hopefully to prevent more attacks.

CAMEROTA: And listen to this story, a hand held radar device used by law enforcement officials across the country is sparking privacy concerns today, and that's because the devices allow authorities to see through walls up to 12 inches thick. They can detect a person's breathing, we're told, from 50 feet away. Authorities say this is designed to make police officers and firefighters jobs safer, but the ACLU says it infringes on civil rights.

PEREIRA: Privacy advocates will have all sorts of things to say about that.

CAMEROTA: I don't want people looking through my walls.

PEREIRA: But if you were a hostage inside the building.

CAMEROTA: Then I would want someone looking through my walls, right.

PEREIRA: If you are victim of fire, firefighters and law enforcement could use this as --

CUOMO: She's got you on strings.

CAMEROTA: She must.

PEREIRA: That's why I'm here.

CAMEROTA: How she did that?

CUOMO: She's smart, that's all.

President Obama's top advisor Valerie Jarrett is going to join us next. Now, how closely is the White House watching what's happening in Yemen? Should the embassy be evacuated?

We'll get answers next.

(COMMERCIAL BREAK)

CAMEROTA: All right. We're covering some breaking news for you this morning. A critical U.S. ally, Yemen, is on the verge of a coup. The Middle Eastern country is home to a dangerous affiliate, AQAP.

Is it time to evacuate U.S. personnel from the embassy there?

Joining us is senior adviser to President Obama, Valerie Jarrett.

Ms. Jarrett, good morning.

VALERIE JARETT, SENIOR ADVISER TO PRES. OBAMA: Good morning, Alisyn.

CAMEROTA: We'll get to President Obama's State of the Union in just one second. But we wanted to hear the White House's thoughts on what's going on in Yemen this morning. Is the White House considering evacuating all U.S. personnel?

JARRETT: Well, first of all, there is nothing more important to the president than the safety of American people. Secondly, the State Department is in very close contact with our embassy and folks on the ground, and the president is receiving regularly -- regular updates from his national security team here at the White House. So, no decision has been made to announce yet.

CAMEROTA: We just had Senator Angus King on our air on NEW DAY. He said that the time is now to evacuate because he's worried that there could be a hostage crisis. How concerned is the White House and why not just do it right now?

JARRETT: Well, the president is very concerned, but that's his decision to make and he'll make it in consultation with both folks on the ground and his national security team.

CAMEROTA: What's the reason not to evacuate?

JARRETT: Well, having a presence there is very important. That's a very important region and the work that they're doing, that is key to our agenda and so it's -- many of the people who serve, and it's an important point to make in our embassies all across the world are at risk. We are very grateful to them for that service. These are oftentimes very dangerous jobs.

And so, it's a delicate balance, and the president, as I said, is personally monitoring the situation very closely and the State Department is in absolutely continuous contact with our folks on the ground.

CAMEROTA: Yes. I mean, of course, it's a delicate balance and, of course, it is important to have them there, but it just seems as the situation is becoming more turbulent -- you know, people think back to Benghazi when there were warning signs that the situation on the ground was getting more turbulent, it was time for the ambassador to go. And maybe -- no one wants to see a repeat obviously.

JARRETT: Well, obviously. As I said at the outset, nothing is more important to the president than the safety of the American people and we are fortunate to have so many people who are willing to put themselves in harm's way every day serving our country.

CAMEROTA: Ms. Jarrett, we want to talk about the State of the Union Address. Last night, many political watchers including our own Wolf Blitzer, said they couldn't remember a State of the Union where the threat of a veto was invoked more often. Last night, President Obama said he would veto any repeal of Obamacare, he would veto any deregulation of Wall Street, he would veto any sanctions against Iran.

Tell us about that tone. Was that the right tone for a State of the Union Address?

JARRETT: Well, I think, first of all, the president really enjoys an opportunity to speak directly to the American people. It gives him a chance to lay forth his agenda, what his priorities are and how he wants to -- how he sees the State of the Union and he sees the state of our union as very strong. I mean, just take a step back and remind everyone we've now had 58 straight months of private sector job growth, over 11.2 million jobs. We're absolutely moving in the right direction.

But the president wants to make sure that what's happening in the aggregate in the economy actually is happening with individual families and their lives. And so, he wanted to be clear about what he's for but he also wanted to be clear that as Republicans have come back and as they've started to take action, what he's not going to do is have them dismantle his Affordable Care Act that's providing health care to millions of Americans for the first time. Women who are getting preventive care for the first time. People who have pre- existing conditions without who would be without insurance altogether were it not for the ACA.

He took executive actions as a last resort for immigration reform, and he made it very clear that he was hoping Congress would act. The Senate did act in a bipartisan basis, but the House for over two years didn't act, and so the president said, now I'm going to do what I can do. I'm not going to let you simply overturn that. If you don't like the executive actions, pass a bill.

And so, I think it's really important for him to stand up and say what he stands for, what he intends to do, but also let's not forget the end of the speech, which was really important. What he said, look, we can disagree, but let's find that common ground.

And there are many of the proposals that he set forth last night, including many of the tax proposals that began and came from Republicans. And so, let's not just say because it comes out of his mouth that it's dead on arrival, let's work together, let's find that common ground.

And let's remind ourselves of why we're all here, and that's to serve people like Rebecca who was sitting in the box who -- she and her husband are just trying to make ends meet, and go back to community college, get retraining. Her husband now as the construction industry is coming back is doing better, but couldn't afford child care. So, that's an explanation. He's telling the story for why he wants to

provide $3,000 tax credit for every young child in our families.

CAMEROTA: Right.

JARRETT: Because this is what people are talking about when they sit around their kitchen tables.

CAMEROTA: Let's talk about the Republican rebuttal to the president's State of the Union last night. It was given by new Senator Joni Ernst. She talked about bipartisanship as well and where she thinks there is an opportunity and for job growth. She zeroed in on the Keystone Pipeline. Listen to this.

(BEGIN VIDEO CLIP)

SEN. JONI ERNST (R), IOWA: President Obama has been delaying this bipartisan infrastructure project for years, even though many members of his party, unions, and a strong majority of Americans support it. The president's own State Department has said Keystone's construction could support thousands of jobs and pump billions into our economy and do it with minimal environmental impact.

(END VIDEO CLIP)

CAMEROTA: OK. So, given all of those reasons, why doesn't the president like it?

JARRETT: Well, first of all, the president hasn't made a decision. What he has said is the State Department hasn't yet made a recommendation to him. They haven't finished their process of consulting with all of the additional agencies who have standing to participate in this.

But the more important point he made is, let's not focus on one pipeline, let's be bolder than that. We have infrastructure all over our country, our airports, our ports, our roads, our bridges all of it who need investment. Those would create jobs right now.

When we want to compete with countries across the world and create an incentive for companies to locate here in America, make their goods here in America, infrastructure is critical. So let's not just focus on one small pipeline, let's think bigger than that. Let's be bold and let's come up with a way to make sure that the United States stays globally competitive.

That's where his focus is.

CAMEROTA: Senior adviser to the president, Valerie Jarrett -- thanks so much for coming on NEW DAY.

JARRETT: My pleasure. Thank you, Alisyn.

CAMEROTA: Michaela?

PEREIRA: All right, Alisyn. When it comes to the president's new agenda, is there any common

ground between Republicans and Democrats? We'll debate that ahead.

CUOMO: And it is an historic day in Cuba. The first face-to-face talks with the U.S. since 1961 taking place in Havana and it all starts today. But guess what showed up before the diplomats did? A Russian spy ship? What's that about? The latest from Havana, ahead.

(COMMERCIAL BREAK)

CAMEROTA: Welcome back to NEW DAY.

Let's break down the president's State of the Union address and his ambitious agenda.