Return to Transcripts main page

CNN Newsroom

Town Stunned by 8 Shooting Deaths; Obama to Host South Korea's President at State Dinner; Libyan Fighting Continues

Aired October 13, 2011 - 12:00   ET

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

FREDRICKA WHITFIELD: All right, top of the hour now. I'm Fredricka Whitfield.

Let's get you up to speed.

President Obama and his counterpart from South Korea are set to speak to reporters in about 20 minutes from now. You will see the news conference live here on CNN.

The South Korean leader is in Washington for a state visit. He arrived just hours after Congress approved a trade deal with his country. The Obama administration predicts it will create 280,000 new jobs.

People in Seal Beach, California say they are in shock today. A man walked into a salon, and then opened fire Wednesday. Eight people were killed. Police identify the suspect Scott DeKraii. They haven't given a motive but the "Los Angeles Times" reports DeKraii was locked in a custody battle with his ex-wife. Our affiliate KTLA reports she is among those killed.

(BEGIN VIDEOCLIP)

SGT. STEVE BOWLES, SEAL BEACH CALIFORNIA: As you all know, Seal Beach is a small, safe community, and we don't experience these things, ever.

It's been a long time since we had something -- we don't very often have homicides, and especially anything of this magnitude.

(END VIDEOCLIP)

WHITFIELD: One shooting victim remains in critical condition today.

In Libya today, the battle for Sirte has come down to a few streets.

(VIDEOCLIP)

WHITFIELD: Sirte is among the last towns to keep fighting for Moammar Gadhafi, the former Libyan ruler. It is his tribal home and fiercely loyal. The new government says it will declare Libya liberated once it controls all of Sirte.

Our Dan Rivers is there.

(BEGIN VIDEOCLIP)

DAN RIVERS, CNN CORRESPONDENT: Like the troops we're with, we try to stay out of the line of fire. Sometimes the bullets come out of nowhere. Comfortably close, even battle-hardened soldiers flinch sometime sometimes.

(END VIDEOCLIP)

WHITFIELD: And Libyan fighters claim that they have captured one of Gadhafi's sons in Sirte. That has not been confirmed. Such reports have been wrong in the past.

And Research in Motion, that's a company that operates BlackBerry. Well, they say BlackBerry service is back for all customers worldwide. RIM says a back-up computer system failed and it doesn't know why. BlackBerry service went on the frits Monday in Europe, Africa and the Middle East. By Tuesday, outages spread to South America. And then Wednesday, North America. About a half -- half of the 70 million BlackBerry users worldwide reported problems.

The manslaughter trial of Michael Jackson's doctor got going again a short time ago. It's possible prosecutors could wrap up their case today. Jurors are hearing from experts about Dr. Conrad Murray's use of anesthesia at Jackson's home. They say Murray was wrong to give Jackson Propofol as a sleep aide, and they add he should never have left him alone.

(BEGIN VIDEOCLIP)

DR. ALON STEINBERG, CARDIOLOGIST: When you monitor a patient, you never leave their side, especially after giving Propofol. It is like leaving a baby that's sleeping on your kitchen countertop.

(END VIDEOCLIP)

WHITFIELD: Murray's defense team no longer claims Jackson overdosed by drinking Propofol. The anesthesia apparently isn't effective by mouth, instead they say Jackson injected himself.

In Paris, France, prosecutors have dropped a sexual assault case against Dominique Strauss-Khan. They say there wasn't enough evidence to pursue charges against the former IMF chief. A French journalist accused him of trying to rape her during an interview in 2003. A similar case against Strauss-Khan in New York collapsed this summer when prosecutors raised doubts about the woman's credibility.

This Florida man is due in court tomorrow on hacking charges. Federal authorities say Christopher Chaney broke into e-mails of young Hollywood starlets. Nude photos of some of the celebrities turned up on the Internet. Cheney claims he was addicted to hacking.

(BEGIN VIDEOCLIP)

UNIDENTIFIED MALE: So what would you do with the information you found in those e-mails? CHRISTOPHER CHANEY, HACKING SUSPECT: Just nothing. I mean it was almost like reading a completely uncensored blog. I mean I wasn't saving archives of e-mails to maybe blackmail someone.

(END VIDEOCLIP)

WHITFIELD: If convicted on all counts, Chaney could be sentenced to 121 years in prison. The feds have dubbed him Hackerazzi.

Federal health authorities say 23 people have now died from contaminated cantaloupe. Melons from a Colorado farm were infected with the bacteria Listeria. The cantaloupe was recalled a month ago but symptoms can take weeks to show up. Federal experts say 116 people across 25 states have fallen ill from the bad cantaloupe. Listeria is particularly dangerous for older people and pregnant women.

All right, more now on the deadly shootings in a California hair salon. Police are trying to figure out why a man walked into the shop, and then opened fire. Eight people were killed and another person is in critical condition. There are reports that the suspect Scott DeKraii was in a custody fight with his ex-wife. It happened in Seal Beach, a quiet community near Los Angeles. The suspect is in custody on murder charges now.

Stephanie Malchow is Scott DeKraii's next-door neighbor, and she saw him before the shootings.

So tell us a little bit more about how he appeared to be before those shootings that day.

STEPHANIE MALCHOW, SHOOTING SUSPECT'S NEIGHBOR: Well, I mean he seemed pretty normal. I mean when I left for work, like another normal day. I mean, I waved, hi. And he said, hey, neighbor, you know. I left for work and had no clue that it was probably going to be the last time I was ever going to talk to him. Where his mindset even was.

WHITFIELD: So even prior to yesterday, in any way, shape or form, Stephanie, did you ever know or suspect that anything was troubling him? Did he ever express anything to you, frustrations, anger, anything?

MALCHOW: No. I mean every time I saw him, I mean, he seemed like, you know, he was really happy in his new marriage. I mean, he seemed like everything was fine. I mean, he was always talking about how he loved his son, and as far as I knew, I mean, he basically had full custody of his son for the last two, three years almost.

WHITFIELD: So you didn't know that there may have been a custody battle involving his son with his ex-wife?

MALCHOW: No. I wasn't aware until yesterday when I got home from work. I mean, as far as I knew, I mean he mainly had custody of his son and he had told me that the ex-wife only saw the son maybe one or two weekends a month. WHITFIELD: So, you know, based on, you know, what you knew of him as a neighbor, when you heard that he, you know, allegedly open fire at the salon, tell me what went through your mind.

MALCHOW: I was in complete shock. I mean, I kind of still am. I couldn't believe that out of everybody in my neighborhood that it would have been him. I mean, he seemed like the genuine, really nice neighbor. I mean obviously with this now kind of makes you wonder, I mean, how well do you really know people? I mean, because he was always so helpful, and I mean always hey, is there anything I can do, super friendly to everybody.

You know, he was like the neighborhood watch in our community. He seemed like an all-around good neighbor. I would never, ever have thought that he would do something like this.

WHITFIELD: So then post-shooting last night, in the neighborhood, at his house, what kind of activity did you see?

MALCHOW: Well, once I got home from work, I mean the police pretty much had his entire driveway closed off with police tape and everything, and they were doing a full, I guess, investigation of the home. And there was --obviously there was news vans all up and down my street. And I was just, I mean, in total shock. I just couldn't believe something like this would happen in my own neighborhood. I mean, it is a pretty quiet little neighborhood here. I mean, stuff like this just doesn't happen.

WHITFIELD: Stephanie, thanks so much for your time.

MALCHOW: No problem. Thank you.

WHITFIELD: All right, now your chance to "Talk Back" on one of today's biggest stories. Republican presidential candidate Herman Cain has pulled ahead of the pack in a new national poll for the very first time.

The NBC/"Wall Street Journal" poll shows Cain with a four-point lead over Mitt Romney, but can he stay ahead and win the GOP nomination? That's the "Talk Back" question today.

Carol Costello joining us now from New York.

So, Carol, first it was Romney, then Michelle Bachmann, then Rick Perry, and then Romney, now it is Cain's turn.

CAROL COSTELLO, CNN CORRESPONDENT: It is an interesting primary, isn't it?

WHITFIELD: Yes, it is.

COSTELLO: Or it will be once people actually vote.

WHITFIELD: It's early.

COSTELLO: It seems like we already have, I know. Herman Cain though, once an afterthought, is now leading Mitt Romney by four points in a new NBC/"Wall Street Journal" poll. Republicans seem drawn to his debating skills, his straight talk and of course, 999.

(BEGIN VIDEOCLIP)

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: We have an economic crisis. This economy is on life support. This is why I propose my 999 plan. It attracted a lot of attention at the debates last night. You know you must be doing something right when you get a lot of arrows in your back.

(END VIDEOCLIP)

COSTELLO: You bet you. And Cain now has something far more important -- pub. Cain is everywhere, on "The View," on "Leno," on "Letterman."

(BEGIN VIDEOCLIP)

DAVID LETTERMAN, HOST: He took on Herman Cain's 999 plan. Here, look at this.

(BEGIN VIDEOCLIP)

MICHELLE BACHMANN (R), PRESIDENTIAL CANDIDATE: You're never going to get rid of it. And one thing I would say is, when you take the 999 plan and you turn it upside down? I think the devil's in the details.

UNIDENTIFIED MALE: We've given you several chances to respond. I'll come back to you.

CAIN: That's right.

(END VIDEOCLIP)

COSTELLO: That makes me laugh every time I see it. Seriously though. Some analysts say Cain's popularity has more to do with voters wanting anyone but Mitt Romney than Cain himself.

Roger Simon writes on Politico.com, "The Republican Party is like the Wizard of Oz. Rick Perry wants a brain, Mitt Romney wants a heart and Herman Cain is seeking courage, courage to face the fact that he's never going to be the Republican nominee no matter how well he does in the polls. He needs the courage to settle for something far better than the presidency -- his own show on Fox."

So the "Talk Back" question today -- is Cain able to go the distance? Facebook.com/CarolCNN. Facebook.com/CarolCNN. I'll read your responses later this hour.

WHITFIELD: OK. Are you going to run that clip again that -- the Jay Leno clip again.

COSTELLO: It was "Letterman." WHITFIELD: It's funny and it was terrible to laugh because it is one of those uncomfortable moments. It's funny but should I be laughing at this? It's terrible.

COSTELLO: When that red stuff shoots out of Herman Cain's eyes, I'm sorry, that's funny.

WHITFIELD: I know.

All right, Carol, thanks so much.

All right, here's a rundown of some of the stories that we're covering over the next hour.

First, President Obama meets with South Korea's president at the White House. We'll bring a joint news conference to you live.

And how will the two countries' new free trade deal help or hurt American workers?

Then, heavy fighting in Libya over Gadhafi's tribal home of Sirte.

(VIDEOCLIP)

WHITFIELD: We'll have a report from the front lines.

And then later, the probe into "Operation Fast and Furious" deepens. We'll take a closer look at why the attorney general has been subpoenaed.

(COMMERCIAL BREAK)

WHITFIELD: All right, we expect to see President Obama and South Korean President Lee Myung-Bak shortly. They are scheduled to hold a joint news conference at the White House. You're looking at live pictures right now.

The set up of the two leaders are cementing a long-awaited free trade agreement that was passed by Congress last night. We'll bring you that news conference as soon as it happens.

But right now let's get more on the biggest U.S. trade deal in almost two decades now.

CNN's Karina Huber joining us now from the New York Stock Exchange.

So, Karina, administration officials have touted the deal as a way to boost U.S. exports and create tens of thousands of jobs at home. How many jobs are we talking about?

KARINA HUBER, CNN CORRESPONDENT: Well, Fredricka, of course, this is the million dollar question because of course politicians and special interest groups love to come out with these numbers and have very different methodologies and don't necessarily reveal how they come up with those numbers. And I can tell you, they are all over the map. The White House, for example, they say the trade deal will create tens of thousands of jobs. At the same time, you've got the Chamber of Commerce saying it will create hundreds of thousands of jobs. A big difference there. In some estimates, upwards of 200 to 300K. In reality, it is really hard to predict. But the general idea is that this is meant to be a job creation bill. That's why both Republicans and Democrats finally agreed on something and it will make it easier and cheaper to trade with South Korea, Colombia and Panama. Fredricka?

WHITFIELD: And so when we talk about jobs creation, what kind of industries are we talking about that would be impacted by this trade agreement?

HUBER: All right, well let's go through first of all, car companies. We're seeing that both in South Korea and in the U.S. There could be some winners there and the deal specifically opens a door for more cars to go to South Korea. We've seen China become a big consumer of U.S. cars. The hope is that South Korea will become the same.

Now food producers, beef, dairy, port, etcetera. When we see economies really improve, they want some of those items so bigger demand for that. A lot of that food is going to Colombia.

Then we've got chemical producers and construction equipment mainly going to Panama. That, of course, again as their economy picks up, they need more construction goods. And that's why we're seeing that industry doing well. But before we crack open the champagne, keep in mind, some critics are saying the deal could actually cost us jobs, more specifically in the textile industry. Fredricka?

WHITFIELD: Really. OK. So now let's take a look at the markets. We're seeing a sell-off. At least in the Dow so far, we saw that it was down quite a bit.

What's going on?

HUBER: Yes. Right now it is down by 106 points. That's just a little under one percent. But remember this is quite normal. We had a nice day, nice rally yesterday so could be seeing investors selling, some profit taking right now.

At the same time, we had JP Morgan Chase's results. First banks come out of the gate in this earning season. Well, they had a decent quarter. There was some concern going forward about how all these uncertainties in Europe are going to impact their bottom line. We're seeing, it's really the financials that are under pressure today with JPMorgan Chase's stock down by just a little under seven percent. Fredricka?

WHITFIELD: All right, Karina, thanks so much.

All right, here's some expressed optimism from this trade agreement with South Korea. Some American companies are already gearing up to start trading with that country. The CFO of a leading grapefruit company based in Florida tells us the agreement will boost exports, pricing power, and that company's hiring plans.

(BEGIN VIDEOCLIP)

MIKE GARAVAGLIA, JR., PRESIDENT, ROGERS CITRUS INC.: So we're here in the packing area where we custom pack fruit that's shipped all over the world. Our family business supports the free trade agreement with South Korea because it is going to impact our business in the short term and in the long term with increased sales, and hopefully better pricing.

The idea would be providing access, better access to the South Korean consumer which enjoys and appreciates the quality of Florida citrus. It is a premium market for us and by expanding premium markets anywhere in the world, that tie lifts all votes. We might experience better pricing in all of our markets worldwide by benefiting from a single market in South Korea.

It is a typical supply and demand equation. It offers less fruit for the rest of the world, prices are inclined to be up in those areas. One of our goals is expanding our worldwide market share. We compete with lots of other countries for that market share. The free trade agreement also gives us a balanced, level playing field.

By selling more fruit, extending our season, selling it for a better price allows us to re-invest in our grows primarily. That's not a short-term endeavor. From the day that we pull a trigger on planting new trees, it is about a ten-year proposition. It is expensive and it is risky. But there's a lot of jobs that are in between there.

Once those trees are in the ground, besides the labor that -- for the nursery men and the fertilizer companies, there's a constant re- investment in that tree before it starts producing fruit.

Being in agriculture period, right, is a business that you have to be passionate about. That's something for the weaker spirit, it is a challenge every day. Any time the government to government relations can improve the ability for us to market in other countries is a pretty good thing for us.

(END VIDEOCLIP)

WHITFIELD: All right, that's the expressed optimism from one American company on this agreement that has trade between South Korea and the U.S. So again we expect to see right here, live picture, press conference involving President Barack Obama and the South Korean President Lee Myung-Bak any moment now.

They are scheduled to hold this joint news conference talking in large part about that free trade agreement. It has been moved from the Rose Garden. It was very rainy out. Now it is going to be in the East Room as you see right there.

Most people are now seated and poised ready for that to take place. The two leaders are cementing a long-awaited free trade agreement that was passed by Congress just last night. We'll bring you that joint news conference as soon as it begins. (COMMERCIAL BREAK)

WHITFIELD: All right, we want to take you straight to the East Room there at the White House. President Barack Obama and South Korea's president, Lee Myung-Bak.

(PRESS CONFERENCE WITH PRESIDENTS OBAMA AND LEE SENT AS SEPARATE DOCUMENT)