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Deep Discounts; Target Talks Hacking; Terrorists Video; Burning Vehicle Rescue; Weather Outlook; Congress Stinks

Aired December 26, 2013 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: And, Brianna, thank you so much.

Good afternoon, everyone. I'm Kyra Phillips, in for Brooke Baldwin. A lot going on in the NEWSROOM today, so let's get right to it.

It is the post-shopping holiday blitz. Just one day after Christmas and retailers are offering the best deals of the year, all in an effort to boost the bottom line before they close the books on 2013. And here are just a few of the deals out there. Toys "R" Us are offering "buy one-get one 40 percent off" on all video games. Also Sears is staying open late offering big sales on appliance, up to 40 percent off there. And Macy's has discounts of up to 65 percent with free shipping if your order is over 75 bucks.

Our Margaret Conley is in New York just outside of Macy's.

Margaret, are you tempted to shop with everyone that you're interviewing today?

MARGARET CONLEY, CNN CORRESPONDENT: Yes. There are a lot of people here today, Kyra. And Macy's, they're pulling out all the stops to get inventory off the shelves before the end of the year. Macy's opened at 6:00 a.m. And here's what we've heard from shoppers.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Yes, a nice deal.

CONLEY: Yes?

UNIDENTIFIED FEMALE: Fifty percent off, 9.99, a lot of stuff on sale.

UNIDENTIFIED FEMALE: Twenty-five percent, and then they kept on throwing in all kinds of little goodies.

UNIDENTIFIED MALE: Oh, no, I got 50 percent and then the guy behind the counter pulls out his phone and takes another 25 percent off of a coupon he has on his telephone. I won't tell you his name.

UNIDENTIFIED FEMALE: I have some jewelry and, you know, some other little things that I didn't get to buy for some people that I missed. So I just seized the opportunity to get it on sale.

UNIDENTIFIED FEMALE: Shoes.

UNIDENTIFIED FEMALE: A lot of shoes. A lot of girly stuff.

UNIDENTIFIED FEMALE: I think I got four pair.

UNIDENTIFIED FEMALE: Yes, I've got two. So, six pairs.

(END VIDEO CLIP)

CONLEY: And, Kyra, as the days go on, the crowds have grown as the afternoon has progressed.

KYRA PHILLIPS, CNN ANCHOR: And I'm assuming a lot of returns, as well. I couldn't believe how high the numbers are. Not just the spending but the returns.

CONLEY: Yes, that's a huge issue. The National Federation of Retailers, they said last year retailers lost $264 billion from returns. So a lot of stores right now, they've loosened up their policies for returns. A lot of items you have 30 days to return. But we did find a list of stores where the time is unlimited. But check the item. Make sure it's on the list. The stores that we found that had unlimited returns are Macy's, Bloomingdale's, Costco, Bath & Body Works and Anthropologie.

And also one thing to add here is that consumers are being tracked. There's this company called Agile One (ph), and I got in touch with their CEO last night. He says there's different kinds of consumers and they are tracking them like you would stocks. They are consumers that do few returns and then there are the consumers that buy the same sweaters, for example, but in three different sizes, and then return two of them. So what he does is he tries to advise the stores to incentives those consumers so they would give, for example, the sweater buyers a coupon for jewelry so there's a better chance of them keeping the sale.

PHILLIPS: Pretty creative. Margaret Conley, thanks so much.

And as Margaret mentioned, plenty of deals today. So, where are the hottest online deals? We're going to ask our experts coming up in just about 25 minutes.

Well, the more we learn about the hackers of those card swipe devices at Target stores, the more difficult it is to actually discern the facts, speculation and, of course, corporate spin, because today Target is now saying that breach did not compromise unencrypted PIN data. CNN business correspondent Zain Asher in New York.

So, Zain, the 40 million victims of this theft, is it fair to say they can sort of breath a collective sigh of relief?

ZAIN ASHER, CNN PERSONAL FINANCE CORRESPONDENT: Hey, Kyra.

You know, it's interesting because Target is saying that there's no evidence that PIN data was compromised. But then you have this Reuters report that just came out saying, that in actual fact, that might not be true. That, in fact, these hackers may have gotten access to people's PINs as well. Now, as you mentioned, it's so difficult to figure out what is corporate spin and what is true and what is not true, but let me say this, if these hackers did actually get access to people's PINs, it means that they can actually go directly to an ANT and withdrawal money straight from people's bank accounts. It also means they can use these PINs to check the balance on people's accounts and use that to figure out how much money they can withdrawal without anyone noticing.

My advice to people is simple. You know, if you shopped at Target between say the end of November and mid December, it is crucial that you check your statements. And also watch out for even the tiniest of charges that you don't necessarily recognize because sometimes these hackers will test the waters and buy something very small. But if you're not sure, the best thing to do is really just cancel your card and get a new one. That is the safest way to sort of be sure, I guess, that nothing was stolen from your account.

Kyra.

PHILLIPS: Well, let's take a look at part of the statement today.

ASHER: OK.

PHILLIPS: And it says, "to date, there is no evidence that unencrypted PIN data has been compromised. There are also no indications that any PIN data was compromised. Our priority continues to be the security of our guests and we are working around the clock to address this issue."

Now, several banks have limited how much money we can take out of our own accounts.

ASHER: Right.

PHILLIPS: And because of this mess, right? So can you get us up to speed on where that stands?

ASHER: Right, so JP Morgan Chase specifically initially reduced spending limits on potentially affected customers. So what that meant was they said initially that they were going the reduce limits to $100 for withdrawals and $300 for spending limits. Now they've since raised that just a few days ago. They raised it to $250 for withdrawals, specifically, and $1,000 for spending. But, listen, the banks have to protect themselves, as well. Typically if you're - you know, if somebody sort of hacks into your account and commits fraud, you're not going to be liable for those charges. The banks have to protect themselves because they're going to have to write it off as losses. But so far JP Morgan Chase specifically is the only major big bank, only major U.S. big bank, to have taken those measures.

Kyra.

PHILLIPS: But the U.S., you know, has by far the world's largest economy, yet some of the world's worst credit and debit credit protection, as we have learned. So how can that be, I guess? And when is that going to get fixed? ASHER: Well, the real problem lies in the magnetic strip on the back of your card. That is where a lot of the data is. And this is technology that was -- came about in the 1960s and it's a lot cheaper. That is why we still have this system. In Europe, well specifically in England where I'm from, they use a system known as chip and PIN, which basically means that there is a chip stored on your actual physical debit card. That is where a lot of the data is stored. And it's not transmitted. So it means that if somebody's going to break into your account, for the most part they do actually need the physical card and the PIN.

Now, the issue with the U.S. is that this system is a lot more expensive. But my bet is, you know, when you see more of these data breaches taking place, you are going to see more banks going over to the European system no matter how expensive it is.

Kyra.

PHILLIPS: Zain Asher, thanks so much.

(BEGIN VIDEO CLIP)

WARREN WEINSTEIN, AMERICAN HELD HOSTAGE BY TERRORISTS: Nine years ago I came to Pakistan to help my government. And I did so at a time when most Americans would not come here. And now, when I need my government, it seems that I have been totally abandoned and forgotten.

(END VIDEO CLIP)

PHILLIPS: It's a brazen move by the terrorists. That video drop happened on Christmas Day. An American captive pleading for his life. Al Qaeda is holding Warren Weinstein. They grabbed him two years ago in Lahore, Pakistan. And now they're using him at the age of 72, Christmas Day no less, to try and gain leverage. Listen to this. They apparently put him up to pressure his own family to lobby the U.S. government to negotiate his release lest he die in captivity. It's pretty horrifying. Take a listen.

(BEGIN VIDEO CLIP)

WEINSTEIN: I understand this is not easy. And I know that doing so will take its toll on each of you. But in the final analysis, unless you continue to try to get President Obama and his administration to actively pursue my release, we may never see each other again.

(END VIDEO CLIP)

PHILLIPS: Clearly you could see he's under duress. That's American Warren Weinstein, two-plus years a captive of al Qaeda.

Elise Labott's live for us at the State Department.

So can we be certain that folks in Washington are actually sifting through this video as we speak and looking for clues to his whereabouts, the condition of Warren, Elise? ELISE LABOTT, CNN FOREIGN AFFAIRS REPORTER: I think so, Kyra. And also I think the State Department intelligence community are looking to see if this is a recent proof of life, whether it holds any clues. But, you know, these cases are very - are handled very quietly and low key. The U.S. doesn't want to do anything that could jeopardize efforts to get him out. Let's note that he works for a private contractor which was doing work in Pakistan. They could be working on something. The company is not saying anything right now.

But clearly you can see he seems very desperate. If you compare the previous photos that we've seen of Mr. Weinstein to this video, you can see the years are really taking their toll on him, and as he says in this plea to President Obama. Let's listen a little more to the message.

(BEGIN VIDEO CLIP)

WEINSTEIN: Mr. Obama, you are a family man and so you understand the deep mental anxiety and anguish that I have been experiencing. I am therefore appealing to you, on a humanitarian basis, if nothing else, in asking that you take the necessary actions to expedite my release.

(END VIDEO CLIP)

LABOTT: And he says President Obama is in his second term now, doesn't have to work on re-election. He can actually take some of these hard decisions. And he says he has spent his whole life in the service of the U.S. government and the American people, and he's asking not just the president but Secretary of State Kerry, the American public and us in the media to help bring him home. He says he felt abandoned.

And in this letter that he sent to "The Washington Post" when he forwarded this video, he says he's really disappointed. He feels that the media has forgotten about him.

But, Kyra, when you look at what his captors are demanded in exchange for his release, the release of al Qaeda prisoners, an end to drone strikes in areas like Pakistan, Afghanistan and Yemen, it's pretty clear that isn't going to happen because the U.S. doesn't negotiate with terrorists. And it's really hard to see how this gets resolved.

PHILLIPS: Yes. We'll follow it and he definitely hasn't been forgotten. Elise, thanks so much.

Coming up next hour, we're going to talk live to a former CIA covert operations officer and we're going to ask him what he sees in this video, including any secret signs, possibly, that Weinstein could be sending.

Also coming up -

(BEGIN VIDEO CLIP)

DON THOMPSON, LOS ANGELES POLICE DEPARTMENT: It was just a matter of seconds. Another 10, 15 seconds, there just would have been too much fire. (END VIDEO CLIP)

PHILLIPS: An L.A. cop driving to work makes a daring rescue. How close he and the driver came to a fiery end.

Plus, Americans have spoken and the results are in. How do you really feel about the 113th Congress? Let's just say not impressed is an understatement.

(COMMERCIAL BREAK)

PHILLIPS: Well, imagine that you're trapped in your car, it's on fire, burning, and you can't get out. And with all the flames, who would risk their lives to help you? It would take a miracle. Here's our Miguel Marquez.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): Hard to tell, but that is a black Mercedes. It lost control on a major freeway in Los Angeles. Harder to believe, the man who was driving survived.

DON THOMPSON, LOS ANGELES POLICE DEPARTMENT: It was just a matter of seconds. Another 10, 15 seconds, there just would have been too much fire.

MARQUEZ: Seconds to rescue the 72-year-old man whose car burst into flames after smashing into the center divider.

THOMPSON: I reached in there and I fumbled a bit more and thank goodness I found that button and popped the belt and grabbed him and pulled him out.

MARQUEZ: Adding to the miracle, Don Thompson, a 26 year veteran of the LAPD bomb squad, happened to be on his way to work. His shift started early. Diving into the flames, pulling the driver to safety.

THOMPSON: I'm just kind of singed, you know, hair here and some first degree on the side.

MARQUEZ: Thompson did have help. Miracles sometimes need company. A Los Angeles firefighter happened to be driving by, making the rescue seamless.

ERIK SCOTT, LOS ANGELES FIRE DEPARTMENT SPOKESMAN: To be able to help to immediate patient assessment and get other resources on scene a lot quicker because he happened to be the commander of the dispatch center and called them directly to do so.

MARQUEZ: A horrible accident and an impromptu act of heroism.

THOMPSON: It makes me feel good to know that I've saved a life.

MARQUEZ: Understatement from a veteran cop, all in a day's work.

(END VIDEOTAPE) PHILLIPS: Well, Miguel Marques, thank you so much.

And CNN affiliate KTLA does report that at least two civilians actually helped with that rescue. The man pulled from the car was transported to the hospital with moderate injuries.

Well, a fresh but light round of winter weather is in the Great Lakes and the Northeast. It's hampering efforts to restore power to thousands of residents. Utility crews actually have been working in frigid temps ever since Christmas Eve. More than 400,000 Michigan homes lost electricity after last weekend's big ice storm. And then in northern New England, the same scenario, about 30,000 residents in Maine were left in the dark. A full fix not expected until the weekend, as well.

More rain heading to the south. CNN meteorologist Jennifer Gray here now and to talk about the travelers returning home for the holidays.

What do you think? More storms to come?

JENNIFER GRAY, AMS METEOROLOGIST: Well, the short answer is no, the country is very, very calm right now. We're seeing high pressure in control across the mid-section. Maybe a couple of isolated showers in south Florida, mostly sunny in the Southwest. We're actually going to be warming up in the Midwest. We only are dealing with a couple of lake-effect showers -- snow showers around the Great Lakes. That's really it. Look at this, Denver warming up to 52 degrees today, Kansas City at 44, Chicago will hit 30, even in D.C. in the 40s. So we'll gradually be warming up over the next couple of days.

We are seeing a little bit of lake-effect snow but it's really not going to be too much. The power outages, the ice, all of that's left over from last weekend's storm. And so we'll be watching temperatures warm up in those areas as well over the next couple of days. Buffalo, Syracuse, could pick up two to four inches of snow throughout the day today. Even Maine picking up one to three inches.

Temperatures are still very cold in the north, really not above freezing. But in the next couple of days, things will start to change. So Burlington could see temperatures at 36 degrees on Saturday. And with these temperatures above freezing, that will help with that ice melt through the weekend.

PHILLIPS: All right, Jennifer, thanks.

Well, here's a question for you, what is a lower approval rating than cockroaches, Genghis Khan and lice? Your Congress. A new poll explains why.

And the last minute shopping might be over, but a lot of the deals have just begun. Our retail experts will tell you - tell all of us actually where we can go.

(COMMERCIAL BREAK)

PHILLIPS: The politically minded people who might disagree on everything else appear to share at least one conviction, Congress stinks. No, really stinks. A new CNN poll has found that the public's distaste for the legislative branch now borders on contempt. Here's our chief congressional correspondent Dana Bash.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT (voice-over): Freshman Angus King and Joe Donnelly just wrapped up their first year in the Senate. Their take on the institution is telling.

SEN. ANGUS KING JR. (I), MAINE: It's still pretty bad that we haven't been able to get more done.

SEN. JOE DONNELLY (D), INDIANA: The more cooperation we can get, the better off we'll be.

BASH: A new CNN/ORC poll shows 67 percent, two thirds of the country, call this the worst Congress of their lifetime, and nearly three quarters of those people, 74 percent, have lived a long life, they're 50 and older. Seventy-three percent says Congress has done nothing to address the country's problems.

BASH (on camera): The public approval of Congress is still pretty low. Does that surprise you?

DONNELLY: No, because what they see every day on television is deadlock and fights and screaming. What you don't see every day is large groups of both Democrats and Republicans coming together saying, how can we work through this process?

BASH (voice-over): One thing that is bipartisan, the blame. The public doesn't trust either party. Fifty-two percent say policies of Democratic congressional leaders will move the country in the wrong direction. Republican leaders fare only slightly worse at 54 percent, saying the GOP will move the country in the wrong direction. Moderate Republican Susan Collins spent the year organizing bipartisan discussion to solve bit problems. She wants Americans to have hope for 2014.

SEN. SUSAN COLLINS (R), MAINE: I hope that the American people will realize that there are some of us who are trying to build bridges and bring people together and solve problems.

BASH (on camera): Congress did leave for the year on a higher note than when it started, passing a bipartisan budget through the House and the Senate. Several senators told me that they had people coming up to them all over their states thanking them for being reasonable. One told me, at first he thought it was a nice compliment, but then he realized that's a pretty low bar.

Dana Bash, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: All right, Dana, thanks. So people are holding Congress to a very low bar, as you can see. Let's see what these guys think. On the left, Marc Lamont Hill. He's a CNN political commentator. Also from Dallas, leaning from the right, Ben Ferguson, also a CNN political commentator.

So, guys, you know, this recent Gallup poll I was looking at said that Americans actually think that car salesmen are more ethical and honest than members of Congress, which I thought is hysterical. So - but on a serious -

BEN FERGUSON, CNN POLITICAL COMMENTATOR: Who does that insult more?

PHILLIPS: Yes.

FERGUSON: Who does that insult more, the car salesman or the congressman?

MARC LAMONT HILL, CNN POLITICAL COMMENTATOR: Yes, I know.

FERGUSON: I mean, I'm worried. That's a toss-up.

PHILLIPS: OK. So we could laugh, you know, and make fun of that, but, I mean, at what point does this become dangerous? Marc?

HILL: Oh, we're way past the point where it began to be dangerous. I mean for the last four or five years, congressional polls of everyday citizens about Congress have shown that people find Congress to be ineffective, spineless, lazy and self-serving. And every year the numbers go up and up. Right now not only is this reflective of how people feel, it's actually true. Only 56 bills signed into law this year in 2013. This has been the most ineffective Congress we've seen in American history. They've been bitterly partisan. They've been spineless, speckles (ph). I have very few good things to say about this Congress. And it goes on both sides of the aisle.

PHILLIPS: Ben?

FERGUSON: Look, I mean, it's pretty popular right now to say you hate Congress. I mean name one thing that Congress has done in the last several years that you can say, man, that really affected my life in a positive way. So I think part of this is just people just think it's really fun to rip on these elected officials that they don't have any faith in to fix their real problems. They run on these big, grand ideas and then they never get anywhere close to what they promise.

How many years have we been having immigration reform? I mean that started back in 2000, and we still haven't done anything about it. And then there was some sort of, I think, really truly big dream with Obamacare and now we see Democrats just getting hammered on that issue because you can't keep your doctor, premiums are a lot higher than you were promised and the president's taken a beating on that with his approval rating. I mean he needed to go to Hawaii to start all over this holiday season. So I think, for a lot of people, they say, they're not doing anything good for me but taking my money and what am I getting in return? Nothing. PHILLIPS: All right. So let's put that all together. OK, let me ask -- I'm going to ask both of you to tell me what Congress did do right, OK? While we mentioned the disastrous handling of the debt ceiling, the government shutdown, the health care debacle, right, inactive when it comes to jobs, immigration, energy policy, Ben, you just hit on some of that. All of this while only 64 bills were passed. Can either one of you say, but hold on, there was - there was this that was good, or a sign of hope?

FERGUSON: Yes, they took a Christmas break and didn't spend any more of our money. That was good.

HILL: No, I had -

PHILLIPS: Go ahead. Go ahead, Marc. Hold on, Ben. Go ahead, Marc.

HILL: I saw signs of hope in the last three months with regard to Obamacare. And I disagree entirely with Ben's assessment of Obamacare. I think that's reflective of the kind of partisan rhetoric that causes problems in D.C.

I think in truth what we saw over the last three months are Democrats in Congress actually standing up to Republicans and forcing the nation to deal with the fact that we have Obamacare, that it is an effective policy and that ultimately once we work out these kinks, and the kinks are terrible, we're going to be fine. So watching the Democrats actually have a spine during the shutdown time on the debt ceiling conversation and on Obamacare has inspired me. But I'm still not optimistic that 2014 will be considerably better.

PHILLIPS: Ben.

FERGUSON: I think it's going to be better for the Republicans.

HILL: He's going to agree with everything I just said.

FERGUSON: I mean the government - the government shutdown -- the government shutdown hurt Republicans and now all of that lead the Democrats were rallying on has disappeared. I mean right now the present (ph), an incredibly low number, Democrats are, and Republicans are actually more favorable now than the Democrats are with Obamacare being implemented and because mainly it's been a pretty big failure. I mean you can't even get a website to work right, which goes back to the government cynicism.

HILL: No.

PHILLIPS: Hey, but you know - but Congress actually passed --

HILL: That's not true. That's not true, Ben.

FERGUSON: I mean -

PHILLIPS: Guys, guys, guys.

HILL: Obamacare - Obamacare hasn't been a failure. PHILLIPS: They actually passed a budget agreement. Isn't that a little sign of hope?

FERGUSON: Yes, it was a great budget agreement. Have you looked at it?

HILL: Yes, but the problem is, with the budget agreement Republicans -

PHILLIPS: Go ahead, Ben.

HILL: We and Ben both agree that the budget sucks. I think we both agree the budget agreement is bad. The difference is, I say it's bad because Republicans refuse to include necessary components, like unemployment extensions and other sort of financial forms of relief for everyday vulnerable citizens. That's the problem. And that's what's wrong with Congress, Republicans won't play fair.

FERGUSON: See -

PHILLIPS: Final thought, Ben.

FERGUSON: See, Marc, here's my thing. I actually look at what Congress did this last year as a glass half full instead of half empty. Think about this. Whether you're Republican or Democrat, they did barely anything, which maybe means they actually didn't - they actually saved you some of your hard earned money because they didn't pass a bunch of ridiculous government bills to spend more of your cash. So, in theory, it could be a good thing they did nothing because at least they're on vacation not passing laws that are hurting small businesses and spending our tax dollars. I kind of like it.

HILL: Oh, Ben.

PHILLIPS: Well, this has been a lovely discussion about how our Congress sucks, as Marc so lovingly put it.

Marc Lamont Hill, Ben Ferguson, thanks, guys.

FERGUSON: Amen. We agree.

PHILLIPS: Well, you agreed on something. That was good news. Thanks -

FERGUSON: We did.

HILL: Yes.

PHILLIPS: Thanks for coming together and showing some sort of partisanship, nonpartisanship.

All right, well, did you use -

HILL: Our pleasure.

PHILLIPS: OK, thanks, guys.

HILL: How about UPS. I'll tell you what, there is an issue where people are pretty much all on the same page, not real happy that Christmas gifts didn't arrive not on time, not at all. And now there's a shipping company that's - another shipping company, rather, that's facing some pretty serious holiday rage. And if you just didn't get that special gift that you were hoping for, well, there is still some time. Here's a positive note. Our retail expert is going to tell us where to find the best deals after Christmas.

(COMMERCIAL BREAK)