Return to Transcripts main page

CNN Newsroom

Jobs Shock Lingers; Iran Nuke Deal; Sandy Funds Probe; Interview with Lawrence Messina; West Virginia May Designate Safe Water-Use "Zones"; Gates' Book Rips Obama's War Leadership

Aired January 13, 2014 - 09:30   ET

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

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Here at the NYSE is Chrysler and Chrysler is expected to return to public trading in the next couple of months.

Ah, you heard it, the opening bell ringing. Looks like Wall Street may have a case of the Monday morning blues. Looking at a lower start now in the first few seconds of the trading day. Investors are still processing that disappointment of a jobs report from Friday showing that the economy added only 74,000 positions in December. The hope is that report was just a fluke.

Overall, though, for stocks, we're looking at 2014 not really off to a roaring start. All three of the major averages are down for the years with the Dow leading the decline with an almost 1 percent loss. Now, over the next couple of days, earning season, it's going to get into full swing with all of the six big banks set to clock in with their corporate report cards by the end of the week.

Carol.

CAROL COSTELLO, CNN ANCHOR: Alison Kosik, many thanks.

KOSIK: Sure.

COSTELLO: Still to come in the NEWSROOM, a milestone in diffusing the nuclear ambitions of Iran. But a new threat looms in Washington. Here's chief national security correspondent Jim Sciutto.

Good morning, Jim.

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Carol, still strong support on The Hill for new sanctions against Iran, which Iranian officials tell CNN would, quote, "ruin the entire agreement." More after the break.

(COMMERCIAL BREAK)

COSTELLO: Good morning. Thanks so much for joining me. I'm Carol Costello.

The White House says it's just one week away from easing nuclear tensions with Iran. But now the greatest threat to that long awaited deal is taking shape on Capitol Hill. Lawmakers, both Republican and Democrat, are inching towards slapping Iran with new, harsh U.S. sanctions. And that's a potential deal breaker that has President Obama issuing threats of his own. Jim Sciutto is our chief national security correspondent. He joins us from Washington with more on this.

Good morning, Jim.

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Good morning, Carol. Yes, you have this historic agreement negotiated last November and over months before that and now the implementation of this agreement announced over the weekend. Meanwhile, you've got 59 senators who've signed on to new sanctions against Iran. Our reporting is that there are more senators willing to support that if it comes to the floor and the reaction from the Iranians has been consistently negative and angry. I reached out to the deputy foreign minister of Iran yesterday and he responded by email saying, "I am hopeful that the proper implementation of the first step of the joint plan of action will create the necessary atmosphere for serious negotiations." But he goes on to say that, "any move contrary" to this agreement, "such as the enactment of sanctions by the Senate will ruin the entire agreement. We hope we will not have to face that. "

Now, I asked the administration about this yesterday. I said, listen, you've got this building, what are you going to do if this goes forward. And they said, listen, some of the senators have been frustrated that the agreement had not been implemented yet after being negotiated in November. So they're hoping that this might bring some -- particularly some of the Democrats on board to not support new sanctions legislation.

COSTELLO: So if the president vetoes this, will Iran be satisfied?

SCIUTTO: Well, it's a question. I mean the first question is, will there be enough senators to override a majority? It's an open call right now as to whether that's possible. But the administration making a very tough case. They say that - they cite the Iranian official's statement, saying that this will kill the deal. They say that the intelligence community, the U.S. intelligence community, has also concluded that new sanctions would disrupt this deal. But they also make the point that, listen, we are watching Iran as closely as the Congress is. This is what Secretary Kerry said yesterday traveling in response to the agreement.

(BEGIN VIDEO CLIP)

JOHN KERRY, SECRETARY OF STATE: As this agreement takes effect, we will be extraordinarily vigilante in our verification and monitoring of Iran's actions.

(END VIDEO CLIP)

SCIUTTO: And the administration goes on to say, listen, if there's any violation of this, Congress could act in a nanosecond. They don't have to - the administration's words, they don't have to move forward on any bill right now while the agreement's in effect. Say, listen, trust us and we know that you can move forward if there's any obstacle in the next weeks and months as this plays out. But it's a real problem for the administration because they say not only will it make the Iranians angry, it will make our European partners angry who have been brought on for this agreement as well. So, it's still a challenge. We're going to have to watch it very closely over the next coming weeks as this plays out.

COSTELLO: All right, Jim Sciutto, many thanks to you.

Checking our top stories at 37 minutes past the hour.

I'm sorry, but we've landed at the wrong airport. That's what a Southwest Airlines pilot told passengers after touching down seven miles away from the intended destination, Branson, Missouri. A Southwest spokesman said the airline doesn't yet know the cause for the mix up. The NTSB has launched an investigation.

A new controversy for Chris Christie this morning. No, it's not about traffic, it's about tourism. The ad you're watching right now featuring Christie and his family was meant to boost tourism to the Jersey shore after Superstorm Sandy. But CNN has exclusively learned that federal officials are investigating whether Christie improperly used relief funds to make these ads.

Let's bring in CNN national political reporter Peter Hamby to discuss more on this CNN exclusive.

Could this be a bigger blow than traffic gate?

PETER HAMBY, CNN NATIONAL POLITICAL REPORTER: The short answer, I think, Carol, is no. You know, it does compound his problems, though.

This investigation, I think, is interesting for a couple of reasons. One, it further undermines Christie's image as kind of a, you know, straight talker. Remember Sandy lent him this veneer of bipartisanship in 2012, helped him sort of hone that brand as he coasted to re- election last year. And this sort of tweaks that a little bit.

In the context of a Republican primary, if Christie does run for higher office, as most people expect he will, this is interesting because fiscal conservatives will take issue with this. Remember, last year, this issue bubbled up. Rand Paul, the Kentucky senator who has, you know, kind of an ongoing flame war with Chris Christie, kind of took a shot at Chris Christie saying, you know, this is a waste of money because Christie's face was all over these tourism ads.

But, you know, going back to the bridge controversy, I think that, Carol, has much more potential to be a nagging problem for him because the assembly, the Democrats in the New Jersey state house, have subpoena power and they're threatening to subpoena officials up and down the Christie administration in the coming weeks, Carol.

COSTELLO: All right, Peter Hamby reporting live for us this morning. Thanks so much.

Still to come in the NEWSROOM, despite promises of progress, one sixth of the state of West Virginia still cannot drink or even touch their tap water. When will their nightmare be over? We'll take you live to Charleston after this.

(COMMERCIAL BREAK)

COSTELLO: A sixth of the state of West Virginia on edge this morning. It has been four days and hundreds of thousands still don't know when they can drink or even bathe in their water. Right now officials are meeting to try to figure out some safe zones for water usage. But in the meantime, patience is running thin. Joining me now is Lawrence Messina (ph). He's the communications director for West Virginia's Department of Military Affairs and Public Safety.

Welcome, sir.

LAWRENCE MESSINA, COMMUNICATIONS DIRECTOR, W. VA DEPT. OF MILITARY AFFAIRS AND PUBLIC SAFETY: Good morning.

COSTELLO: So, tell me about these safe zones.

MESSINA: I'm sorry, I'm having a hard time hearing. What was your question?

COSTELLO: The safe zones, can you explain them to me?

MESSINA: Yes. Based on the way that the utility operates its distribution system, we're talking about radiant that extends out from the plant, and they - and this plan that's been arrived at by Western American Water, state and local health officials, Governor Tomblin's office and other state officials, uses this -- the way the distribution network is laid out so we can gradually restore service to the affected areas.

COSTELLO: So just to simplify it, people can go to these safe zones and get water?

MESSINA: Well, they can. What we would prefer is that as customers in a particular zone are notified directly with these explicit instructions of how to restore service to their homes, their business, what have you, that they do so and that if folks allow the process to unfold, as planned, that we'll -- eventually the entire service area will be back up and running.

COSTELLO: OK, but that's still going to take some time and it's been four days and everybody's wondering why is this taking so long. What is this chemical?

MESSINA: Well, as it has been explained previously, we're talking about a substance that is used in the process of washing coal. And the -- I think the bottom line is, folks want to make very sure -- very certain that the water is, again, safe for consumption. And that's why the testing process was developed. That's why hundreds of samples have been taken throughout the distribution network at the intake, in the plant itself, and I think folks just want to -- the folks involved in this process want to make very certain that the water is, again, safe for consumption.

COSTELLO: Well, we can understand that. Has the company been cooperative because the company's not said a word since Friday.

MESSINA: You mean the company that was involved in the leak?

COSTELLO: Yes, sir.

MESSINA: I believe that in discussions with our Department of Environmental Protection, that we - that there is a lot of communication between the company and our folks in that department who are helping to monitor the remediation process and also inspect the property to ensure we know what the situation is in there and how to address it.

COSTELLO: Basically there was a hole in one of the tanks underground. Did the company not know about that? Does it know --

MESSINA: Actually, we're talking about an above ground - above ground tank. And the --

COSTELLO: Above ground hole. So you could actually see the hole in the tank with your eyes?

MESSINA: I believe so. That once the Department of Environmental Protection visited the scene, they were able to observe the tank and see the issue at hand. The company would have to answer in terms of when it became aware of the situation and what it tried to do about it. We are aware that - I believe at 12:05 p.m. on Thursday is when they notified our emergency spill hotline, which is set up for when chemicals enter a waterway.

COSTELLO: Do they even know how long that hole was there?

MESSINA: I don't know if the company has said anything about that. The Department of Environmental Protection believes that because this chemical has a very low odor threshold, it doesn't take very much for folks to smell it, that the leak may have developed roughly around the time people started complaining of the odor and it was the odor complaint that led the DEP to find this leak.

COSTELLO: I'm just asking you these questions because it just seems -- it seems unusual that a hole that would be visible in a tank would suddenly pop up unexpectedly.

MESSINA: I believe that the hole has been described as being maybe one inch in diameter. Where it was in the tank I'm afraid I don't know. So to what degree it was visible I can't answer that my understanding is folks in that area complained about a smell. The Department of Environmental Protection went out and traced the smell to this facility and while on the grounds observed this tank and found that it was leaking.

COSTELLO: All right Lawrence Messina communications director for the Department of Military Affairs and Public Safety -- thanks so much for doing the good work out there. We appreciate it.

MESSINA: Thank you. COSTELLO: All new in the 10:00 a.m. Eastern hour of NEWSROOM. Some of the hardest bloodiest warfare since Vietnam now for many troops who fought and watched friends die in Fallujah, Iraq the nightmare may be revived.

New reports suggest the hard fought city could once again be lost to al Qaeda. So was the sacrifice worth it? Hear what some veterans are saying.

That's all new in the next hour of CNN NEWSROOM.

(COMMERCIAL BREAK)

COSTELLO: This just in to CNN. The U.S. Supreme Court has refused to hear Arizona's appeal to reinstate a law banning most abortions after 20 weeks. The ruling means the 2012 state law cannot -- cannot be enforced. Last year a Federal Appeals Court said that restrictions were unconstitutional. Arizona had been appealing that ruling. The U.S. Supreme Court has refused to hear it's appeal.

Former Defense Secretary Robert Gates is launching a defense -- a defense initiative of his own, brushing back criticisms of his book that blasts the current Commander-in-Chief. Gates defends his memoir and his often harsh critique of a sitting president even some fellow Republicans have questioned his timing.

Jim Acosta is at the White House with more -- Jim. What did Mr. Gates say?

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well good morning Carol.

As you know, Robert Gates is in the middle of a media blitz that got started over the weekend despite the fact that he is wearing a neck brace from a previous injury. And if you thought he was dialing back some of his criticism after all controversy he started, guess again.

(BEGIN VIDEO CLIP)

ACOSTA (voice over): No regrets from former Defense Secretary Robert Gates.

ROBERT GATES, FORMER DEFENSE SECRETARY: And the truth is I think the book is very evenhanded. I don't vilify anybody.

ACOSTA: Gates fired back at critics of his new memoir, "Duty" on NBC's "Today" show arguing the juicier excerpts from the book have been taken out of context.

GATES: I'm not really surprised but in a way disappointed that -- the book has sort of been hijacked by people along the political spectrum to serve their own purposes.

ACOSTA: In his tell-all Gates revealed he had little confidence in President Obama's support for the war on Afghanistan. On CBS's "Sunday Morning" Gates said while he admired the President he believed "Mr. Obama was only focused on getting out of Afghanistan."

GATES: It's one thing to tell the troops that you support them. It's another to work at making them believe that you believe, as president, that their sacrifice is worth it.

ACOSTA: It doesn't get any better for Vice President Joe Biden, who according to Gates planted seeds of doubts in the President's mind about military commanders.

GATES: Where I have particular problems with the Vice President was and his encouragement of suspicion of the military and the senior military with the President.

ACOSTA: Detractors claim Gates put out his book too soon just two and a half years after leaving the Pentagon while President Obama still has three years left in office and U.S. troops remain in Afghanistan. Even some of Gates' fellow Republicans argue he should have waited to issue his scathing critique.

SEN. JOHN MCCAIN (R), ARIZONA: If I had given him advice, I would have waited.

SEN. MARCO RUBIO (R), FLORIDA: My preference would be that people would refrain from writing these sorts of things until the President was out of office.

ACOSTA: As he kicks off a TV tour Gates doesn't plan on staying quiet even if it means weighing in on 2016 and whether Hillary Clinton would make a good president.

GATES: Actually I think she would.

ACOSTA: As for Biden --

GATES: Well I supposed to be even-handed, I would have to say, I suppose he would.

(END VIDEO CLIP)

ACOSTA: And as for the prospect of returning to government service, Robert Gates says, thanks, but no thanks. He is not planning to do that. He said that is why he decided to be so candid in this book. And he is candid -- Carol.

COSTELLO: He is candid and I watched that CBS interview and one of the most interesting things, I think, that he said, was he became very emotionally involved with the troops and he felt he could no longer dispassionately do his job. So that's why he decided to get out of government.

ACOSTA: Yes, it's a fascinating read. And a lot of people are talking about it. And you know he also says that he could have waited until 2017, until President Obama left office. But he said that perhaps the lessons that should be learned in his mind about Afghanistan might not have been you know really in the mainstream conversation out here if he had waited another few years. So he said that's another reason why he decided to come out now -- Carol.

COSTELLO: I can't to read the book myself. Jim Acosta reporting live from the White House.

Still to come in the NEWSROOM the Denver Broncos advance to the AFC title game. Brady versus Manning. Bring it on, Andy Scholes.

ANDY SCHOLES, CNN SPORTS: Yes. It's going to be round 15 between these two -- Carol. We will show you how the Broncos got to the title game next in your Bleacher Report.

(COMMERCIAL BREAK)

COSTELLO: A-Rod and his legal team are determined to go down swinging. Andy Scholes is here with the Bleacher Report.

SCHOLES: Saturday, the arbitrator hearing this case suspended A-Rod for the entire 2014 season and the postseason. A-Rod maintains he's innocent. He didn't do anything wrong. And this morning on CNN's "NEW DAY", his attorney, Joe Tacopina -- he was talking to Chris Cuomo. He said, today, they are going to file a lawsuit in federal court to try to get that suspension overturned.

(BEGIN VIDEO CLIP)

JOE TACOPINA, ATTORNEY FOR ALEX RODRIGUEZ: 162 games is inexplicable. It's not based on the law. It's not based on the collective bargaining agreement that's laid out between the unions in Major League Baseball. There's no basis for it. I mean everyone else got 50 games, who if you accept that there was a finding of liability, got 50 games. Somehow 162 is what was levied to Alex for no reason.

I mean Ryan Braun, who actually tested positive unlike Alex and went on a campaign to besmirch the test collector (inaudible) somehow he wound up with 65 games. So that in and of itself is a basis (inaudible) in federal court.

CHRIS CUOMO, CNN HOST: Would he have taken a lesser suspension?

TACOPINA: I don't think he should have taken any. But that's not my call --

CUOMO: Not any?

TACOPINA: I don't think so. I don't think so. This evidence was ridiculous. 90 percent of this evidence would have never made its way to a real courtroom. It was triple and quadruple hearsay. Documents are unauthenticated. I mean I heard this thing about these documents that Rob Manford said (inaudible) authenticated at the hearing.

(inaudible) seventh page of 4,000 pages of documents.

(END VIDEO CLIP)

SCHOLES: So the founder of the Biogenesis clinic and Major League Baseball key witness against A-Rod, Anthony Bosch, he gave side of the story last night on "60 Minutes". He said he injected A-Rod with steroids and told him how to beat the drug testing system. Rachel Nichols will have more on that in the next hour.

The final four in the NFL is now set. The Broncos clinched their spot in the AFC championship game with a win over the Chargers yesterday. Peyton Manning, he struggled in the playoffs before but he was solid in this one, threw two touchdowns in the first half. The Broncos held off a late rally to beat the Chargers, 24-17.

In the NFC, the 49ers went into Carolina, they beat the Panthers to punch their ticket to their third straight NFC title game. Colin Kaepernick leading the way for San Fran and Carol check out this touchdown he did in the third quarter. He is going to get in the end zone. He mocks Cam Newton's touchdown celebration -- the old superman. Then he, of course --

COSTELLO: It was the only exciting part of that game actually.

SCHOLES: Unfortunately, you are correct Carol.

The Niners ended up winning it, 23-10.

Here is your schedule for the championship Sunday. Broncos and Patriots going to square off in Denver at 3:00 p.m. Eastern. This will be Manning versus Brady, round 15 the third time they are going to face off in the AFC championship. That game followed by round three between the Niners and Seahawks. The split the season series this year. Winners will be in the super bowl.

COSTELLO: I hope Seattle will --

SCHOLES: Hopefully, it will be exciting next weekend right. Yesterday was kind of --

COSTELLO: I know. I kept falling asleep. It was bad.

Andy Scholes, thanks so much.

The next hour of CNN NEWSROOM starts now.

Hi good morning. I'm Carol Costello. Thanks so much for joining me.