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Athletes Arrive At Olympics Amid Terror Fears; Police Try To Link Mall Killer, Victims; Snowden: U.S. Officials Want To Kill Me; Jay-Z And Beyonce Kick Off 50th Grammy Awards; Obama's Challenge At State Of The Union; Bitter Cold Closes Schools For Millions; New Home Sales Drop 7 Percent In December
Aired January 27, 2014 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDY SCHOLES, "BLEACHER REPORT": He actually said -- he told Rachel Nichols, he said, "I'm going to Disney World," like everybody else says.
CAROL COSTELLO, CNN ANCHOR: That's not taking any chances. Andy Scholes, thanks so much. The next hour of CNN NEWSROOM starts now.
Good morning. Thank you so much for joining me. I'm Carol Costello. Stories we are watching right now in the NEWSROOM. Athletes are arriving today in Sochi, Russia for the Winter Olympics as new terror threats are surfacing. With more than 10,000 American athletes and their families expected there, U.S. officials are taking no chances. They are moving warships and putting evacuation plans into place.
Our senior international correspondent, Ivan Watson, live in Sochi this morning with more. Good morning, Ivan.
IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Good morning, Carol. That's right. The Russian security forces numbering in the tens of thousands in the Sochi region, you can see over my shoulder, the Olympic torch burning over the very recently constructed Olympic park here with Russian workers still putting the final touches on that.
Meanwhile, the torch relay continues across Russia going today to the turbulent caucuses region of Dagestan, which has been, according to the International Crisis Group, the scene of one of the deadliest conflicts in Europe. Take a look.
(BEGIN VIDEOTAPE)
WATSON (voice-over): This morning, the Olympic torch made its way through the capital of Dagestan, a region plagued by Islamist insurgents, promising more attacks like this recent bombing in Russia, though not specifically mentioning the Sochi games. As Olympic athletes begin to arrive, the U.S. State Department issued another warning last week urging American athletes not to wear their uniforms outside the game's Ring of Steel.
CHUCK HAGEL, DEFENSE SECRETARY: If we need to extract our citizens, we will have appropriate arrangements with the Russians to do this. WATSON: In the event of an attack, U.S. officials say they have contingency plans at the ready. Helicopters on standby on two warships in the Black Sea and C-17 transport aircraft in Germany could be on the scene in two hours. Russian officials hope these emergency plans won't be needed. Assuring their security forces will be vigilant.
SERGEY KISLVAK, RUSSIAN AMBASSADOR TO U.S.: I am certain, because we are doing everything that is needed in order to make sure it is going to be safe. It will be as safe as any other Olympics that can be held currently in the world.
WATSON: But others like U.S. Congressman Peter King, said on ABC's "This Week," he can't give that same promise.
REPRESENTATIVE PETER KING: I can't give them 100 percent guarantee. The fact is that these are going to be very much threatened Olympics, probably more than any we have had in the past.
WATSON: The U.S. continues to offer counter terrorism expertise to Russia with IED detecting software, jamming equipment and warships at the ready. All Russia needs to do is to give the green light.
HAGEL: Whatever we can do, we want to do to help. Right now, there has been no request from the Russian government.
(END VIDEOTAPE)
WATSON: Carol, just today, we've seen Russian Navy ships patrolling right off the coast of Sochi, very close to the Olympic Park. Another one of the security measures the Russians are doing is they are limiting cars. If your car is not registered in Sochi, locals tell me, you can't drive in from other Russian cities. That works both ways. If your car is registered in another city and it didn't leave by January 7th, you can't drive out of here either, forcing some drivers to strand their cars here until the games are over.
COSTELLO: Geez. Ivan Watson reporting live this morning. Normally, at this time, we would be talking about who might land a quadruple axle in the men's figure skating. But instead, we are not talking about the athletes at all. Everything is about black widows and terror threats. CNN's Becky Anderson picks up that part of our coverage from London.
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BECKY ANDERSON, CNN CORRESPONDENT (voice-over): Deadly terror attacks.
(on camera): Russian authorities are on high alert after another deadly blast hits the Southern Russian City of Volgograd.
(voice-over): Violence against two women kissing in public and claims of heavy handedness.
UNIDENTIFIED MALE: They are butting heads if you would like to put it that way, with the Russian Coast Guard and it got a little ugly.
ANDERSON: These are the kinds of reports coming out of Russia. Ahead of the Sochi Winter Olympics, an event designed to promote sport, solidarity, and peace.
MICHAEL PAYNE, FORMER MARKETING DIRECTOR, IOC: The IOC sits there, waiting, praying for the games to actually start and the focus to turn on to the athletes.
ANDERSON: But, rather the focus is these so-called black widows, women, authorities fear, are preparing attacks on the games.
ANDERSON COOPER, HOST, CNN'S "AC 360": The already tense run-up to the Winter Olympics in Russia just got down right terrifying.
ANDERSON: Russian police have stepped up their crackdown on Islamic militants. Broadcasters are voicing people's concerns.
UNIDENTIFIED FEMALE: It is a bit of a leap of faith. You know, you hope that the security is there. I hope that they share information more than they have with the U.S.
ANDERSON: The Russian government has promised the safest games ever, but those who speak out against Russia's anti-gay laws could be on thin ice.
BILLIE JEAN KING, U.S. OLYMPIC DELEGATE: I must say, there is a part of me that would be very alert, very alert, because you just never know.
ANDERSON (on camera): London hosted the most recent games. Many say those were the most successful ever. In the run-up to 2012, ticketing transports and security dominated the headlines. It was only when the athletes got here to the Olympic Park that the legacy was created, records smashed and new ground broken. Now, the question is, whether or not that Olympian motto of faster, higher, stronger, will be enough for the sports men and women to steal a spotlight in Sochi.
PAYNE: When it actually happens, they see the opening ceremony, they see that they are not protesting in the street, I think people say, what was all the noise about and get on with enjoying the sport.
(END VIDEOTAPE)
ANDERSON: The U.S. Olympic Committee has reportedly told the 230 or so American athletes that wearing their team colors at the games may make them a target in Sochi. Earlier this month, the State Department issued a travel advisory warning some 10,000 Americans planning to go that they should remain vigilant.
Let's be absolutely clear, though, an attack on the athletes or fans at these games will be as much personal as a political blow to Putin. He has staked his reputation as president on a successful event. His mantra I guess in 2014 should be, let the games begin and let them be safe -- Carol.
COSTELLO: Becky Anderson reporting for us this morning.
Also new this morning, the Florida Congressman that pleaded guilty to cocaine possession last fall is stepping down. Sources tell CNN, Trey Radel will submit his resignation letter to Speaker John Boehner today. Radel who was caught buying cocaine from an undercover federal agent in Washington acknowledged a separate struggle with alcohol at that time. He completed a stint in substance abuse program last month. A decision on a special election for Radel's seat will be made by Florida Governor Rick Scott.
Today in Columbia, Maryland, the shopping mall reopens just two days after a gunman walked into a store and killed two people and then himself. Police are pouring through a journal left behind by the gunman, 19-year-old Darion Marcus Aguilar. We are not sure if he even knew the victims who died in the explosion, a shotgun blast, 21-year- old Brianna Benlolo and 25-year-old Tyler Johnson. Today, their families are in disbelief struggling to make sense of something that makes no sense.
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SYDNEY PETTY, TYLER JOHNSON'S AUNT: With Tyler, we have lost a kind, positive son who reached out to help others in need and he made a difference. This is so unbelievable. Our prayers are with him and the other victims and all the people who have been touched by this senseless violence.
(END VIDEO CLIP)
COSTELLO: Police say Aguilar legally bought the 12-gauge shotgun back in December. Investigators say he was also carrying a backpack with two homemade bombs that were later disabled.
Edward Snowden making headlines again this morning lobbying out new accusations about Washington's secret surveillance programs. Snowden tells German public broadcaster, ARD, that the NSA spying also included industrial espionage. Snowden says companies were targeted, even though there was no threat of national security. He says U.S. officials want to have him killed too.
CNN Pentagon correspondent, Barbara Starr, in Washington. They want to have him killed?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, that's what he is saying. That's the latest, Carol, in a very lengthy interview that Edward Snowden gave a German broadcaster from where he is currently residing in Moscow. Now, I just want to get right to it and read you part of what Snowden told the Germans.
He said, quote, "These people and they are government officials, have said they would love to put a bullet in my head or poison me when I come out of the supermarket and then watch me die in the shower." We have no real understanding of who exactly Edward Snowden believes wants to kill him. The United States, of course, has charges against him. He has talked about the fact that he would come back to the United States if he didn't have legal jeopardy, that the whistle blower protections don't cover him. There is no indication at this point that the Obama administration wants to give him amnesty, forgiveness or any of that. They want him back. The official word is they want to prosecute him.
On this question of, you know, whether the NSA is targeting American companies for industrial espionage, the administration has said that they are only engaged in this kind of collection and surveillance when there is a national security threat to the United States. Another lengthy Snowden interview and still a lot of questions about what he is really talking about -- Carol.
COSTELLO: All right, Barbara Starr, reporting live from the Pentagon this morning. Let's talk about the 56th Annual Grammy awards definitely kept viewers entertained starting with something Jay-z and wife, Beyonce, have never done together. That would be perform. At times, the fog machine kind of got out of control. It was hard to tell if anybody was actually singing but we think they were. It was a fabulous performance.
The 17-year-old New Zealand native, Lorde, took home the coveted price for "Song of the Year." The helmet-wearing duel of Daft Punk took home "Record of the Year" for their smash hit "Get Lucky." Daft Punk also took home "Album of the Year" for "Random Access Memories."
And in a surprise appearance almost 50 years after the Beatles (inaudible) the two group's two surviving members, Paul McCartney and Ringo Starr performed "Cut Me Some Slack," which went on to win best rock song.
And a reminder for you, the CNN Film's presentation of "The '60s British Invasion" chronicling the Beatles first tour of the United States airs this Thursday, 9:00 p.m. Eastern.
Still to come in the NEWSROOM, high stakes at the "State of the Union," the challenges President Obama faces in his speech and in the year ahead.
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COSTELLO: President Obama looks to reboot his agenda at tomorrow night's "State of the Union Address." Coming off a tough 2013, the president will face challenges with that agenda even within his own party. Here's more now from CNN's Candy Crowley.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN CHIEF POLITICAL CORRESPONDENT (voice-over): This year's "State of the Union" night features a second-term president looking to his legacy and a supporting cast looking to get re-elected. Advantage to President Obama, who will be immediately elevated by the grandeur of tradition, and one of the handiest tools in a presidential arsenal, the power to set the agenda. PAUL BEGALA, DEMOCRATIC STRATEGIST: The most important time to set that agenda is at the "State of the Union" speech. So in that sense, it is the most important day that we know about that's coming in 2014. So he'll use that to revivify his second term.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: We can get this done.
CROWLEY: The president could use some revivification. There were victories but most of 2013 got away from him. After his convincing re-election, the president thought congressional Republicans would be more amenable to his agenda. They were not. The early months were consumed by deficit and spending arguments.
The Boston marathon bombing in the spring dominated the headlines and reawakened that post 9/11 sense of vulnerability. Some were brought the exposure of a secret U.S. government program to collect phone data on most calls in and out of the U.S. and an even response to a coup in Egypt, public disagreements with Israel and an on again, off again strike, against Syria's chemical weapons. October brought --
REPRESENTATIVE JOHN BOEHNER (R), HOUSE SPEAKER: This isn't some dam game.
CROWLEY: A government shutdown that hurt Republicans mostly, but everybody a little and the granddaddy of all agenda busters.
PRESIDENT OBAMA: That's on me.
CROWLEY: The incompetent rollout of the affordable care act, which hurt the president a lot.
PRESIDENT OBAMA: There was a time when I was a young invisible. After five years in this office, people don't call me that anymore.
CROWLEY: Politically, 2013 was the coolest year for the president. He has the poll numbers to prove it and an agenda that mostly didn't happen.
PRESIDENT OBAMA: That I will faithfully execute --
CROWLEY: Presidential second terms are so often downhill trips. There is a name for it, second term curse. To shake it off, this president is in dire need of a better economy and a clean run for his health care law to bolster his poll numbers and then a change-up. In politics that mean either double down on your efforts or pivot. Sounds like the president will choose both, work with Congress to get what he can. Go around them with executive power to go and get what he wants.
UNIDENTIFIED MALE: He will go everywhere he can to try to move the ball forward.
CROWLEY: Tuesday night, President Obama walks up to the House podium and into American living rooms to outline his agenda under the shadow of weak approval ratings and a ticking clock. Seated in the House Chamber will be progressives, previously known as liberals, disappointed in the president for not being more aggressive with Republicans and moderate Democrats facing their own tough re-election battles in conservative states the president lost and Republicans that might win a Senate majority this year.
All of that would mean during the last two years of his tenure, President Obama would be dealing with a Republican-controlled Capitol Hill. No pressure. Candy Crowley, CNN, Washington
(END VIDEOTAPE)
COSTELLO: Be sure to tune in to CNN's coverage of the "State of the Union," that starts tomorrow night at 7:00 p.m. Eastern.
Checking other top stories this morning at 17 minutes past the hour, two Toledo, Ohio firefighters have died in the line of duty. The firefighters were seriously burned while battling a fire at an apartment building Sunday. No one else was hurt.
No computers, phones, Wi-Fi, just some of the tight rules in place for the public as jury selection kicks off in the corruption trial of Ray Nagin, a former New Orleans mayor. The federal judge is worried some people may not respect the court's rules. Nagin is accused of taking more than $200,000 in bribes from city contractors after Hurricane Katrina.
In Alaska, an avalanche has cut off 4,000 residents into the town of Valdez. The only highway into the town is expected to stay closed for a week. A shelter has been set up in Valdez for voluntary evacuations. Food and fuel can be brought into the town by barge, if needed.
This morning, the eastern half of the country is divided into two groups. Everybody is feeling that frigid cold wind. The millions of people shivering from the latest blast of winter that would be that and the millions more who are just hours away from that, from plunging into a deep freeze of their own.
Right now, temperatures are as much as 30 degrees below normal in the northern plains and the Midwest. In some places like Chicago, today's high temperature will not even break zero. So Chicago shut down schools.
Also, there are several other districts across the region that have shut down schools, hopeful school kids take note though that arctic air is heading south along with the threat of a major storm. CNN meteorologist, Indra Petersons is in our weather center with more. Good morning.
INDRA PETERSONS, AMS METEOROLOGIST: Good morning. That's where I come in, always to give people the bad news. One of these days, we are going to flip this, I promise. For now, as you are waking up this morning, look at these temperatures. I mean, Minnesota feeling like almost 40 below right now. Take a look at Chicago, right now feeling like 26 below even Pittsburgh 2 below. Boston, yes, above freezing at 37. But this air is going to be spreading to the south and to the east. The question everybody has been asking, is this the worst it has ever been? No, believe it or not. It is cold but we have seen temperatures way cooler than this before. But regardless, no one care about that when you have to deal with a bitter cold.
Let's talk about the perspective though you just talked about that avalanche out towards Alaska. Keep in mind, meanwhile it's been cold on the eastern half of the country, the western half of the country has been seeing above normal temperatures. Today, they are 40. Meanwhile, Chicago is seeing a high of 1 below. That's that contrast across the country.
Yes, the clipper system making its way in through the northeast. We'll be seeing some lake effect snow and maybe some light dusting snow into New York, but is that cold air really trailing down to the south with this high pressure. This is the bigger story. Let me tell you how unusual this is.
We are going to be talking temperatures so cold all the way down into the south, by tomorrow morning, they are going to be talking about the threat for icing, wintry mix. Winter weather watches, they haven't seen in years. So places like Louisiana and New Orleans could have snow tomorrow morning. It is going to be tough to decide where we are going to be seeing the icing and the snow.
That's all going to depend on how far south that cold air moves, but think about it, Carol. You are talking about the Deep South, talking about several inches of snow or icing. Either way, it shows a perfect picture of what January has been looking like around here.
COSTELLO: It is so weird because in Atlanta, it was almost 65 degrees yesterday --
PETERSONS: A huge drop.
COSTELLO: Indra Petersons, thanks so much.
Minutes ago, the Commerce Department announced new home sales dropped more than expected. CNN's business correspondent, Zain Asher, explains what it means for your money. Hi, Zain.
ZAIN ASHER, CNN PERSONAL FINANCE/BUSINESS CORRESPONDENT: Hi, Carol. Yes, new home sales dropping by 7 percent partly because mortgage rates are up, home prices are up. I'll explain why that might make it easier for you to get a loan coming up after this break.
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COSTELLO: According to a new report by the Commerce Department, new home sales slipped last month. They fell 7 percent. The good news is experts predict market momentum will pick back up and if you take a look at the numbers over the past year, new home sales are actually up quite a bit. So to explain this all, let's bring in CNN business correspondent, Zain Asher. Good morning, Zain. ASHER: Hi, Carol. Yes, so if you look at the whole of 2013, new home sales actually reached the highest level in five years, however when you take the December numbers just by themselves, they actually dropped 7 percent, partly because of the cold weather. Overall, there are a couple of factors happening in the housing market right now that are affecting buyers. Prices are up. Inventory is tight. Mortgage rates are increasing.
Let me show you what home sales, where they are expected to go this year. Home prices, where they are expected to go, so Oakland, California, expects to increase by 9.3 percent, Ft. Worth, Texas, expected to go up by 8.9 percent. Mortgage rates, after seeing historic lows back in May of last year, possibly could reach 5 percent this year.
For some context, home buyers do need to make sure if you are looking to lock in a loan, go for it right now. Partly because banks, they need to drum up business. They are going to try and lure potential home buyers any way they can. Take a listen to what one economist had to say.
(BEGIN VIDEO CLIP)
STAN HUMPHRIES, ZILLOW CHIEF ECONOMIST: As mortgage rates rise, banks have to get more creative about getting new business. They tend to get more creative by lowering the amount of down payment they require or accepting a lower FICO score.
(END VIDEO CLIP)
ASHER: All right, so a FICO score is your credit score to lock in the best possible rate. You probably need something in the range of 740 -- Carol.
COSTELLO: Zain Asher reporting live this morning. Thanks so much.
Still to come in the NEWSROOM, his letter to the "Wall Street Journal" sparking a firestorm. Why the Silicon Valley billionaire says a tax on rich people like him are just like Nazi attacks on Jews.
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