Return to Transcripts main page

CNN Newsroom

Arizona Governor Has Until End Of The Week To Decide On Religious Freedom Bill; Consumer Confidence Falls From 5-Month High; Nugent Says He's Done With Name Calling; Duke Energy To Get Coal Ash Petitions Today; Samsung Unveils Galaxy S5 Smartphone

Aired February 25, 2014 - 10:00   ET

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

CAROL COSTELLO, CNN ANCHOR: Just ahead on the NEWSROOM, thousands of tons of toxic sludge dumped into a North Carolina river. Many are asking, is the water safe?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You go fishing in here?

UNIDENTIFIED MALE: I used to.

UNIDENTIFIED MALE: Would you do that now?

UNIDENTIFIED MALE: No.

(END VIDEO CLIP)

COSTELLO: Three weeks after the spill. Today, scientists begin testing fish. Residents not optimistic.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It is going to hurt a bunch of people.

(END VIDEO CLIP)

COSTELLO: Could this be the next West Virginia?

Plus -- voices growing louder.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We have equal rights. We are all human beings. We deserve the same rights.

(END VIDEO CLIP)

COSTELLO: Against Arizona's controversial anti-gay bill. It has made it all the way to the governor's desk.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I have to look at what it says and what the law says and take that information and do the right thing. (END VIDEO CLIP)

COSTELLO: Governor Jan Brewer speaks to CNN exclusively. The next hour of CNN NEWSROOM starts now.

Good morning. I'm Carol Costello. Thanks so much for joining me. The clock is ticking in Arizona where the governor has only a few days left to veto a bill that has become a lightning rod in the battle over gay right.

In effect that bill would allow businesses to site religious businesses and deny service to gay customers. Some leading Republicans are urging Jan Brewer to kill the bill.

(BEGIN VIDEO CLIP)

SENATOR JOHN MCCAIN (R), ARIZONA: Unfortunately, it hurts the image of our state just as a couple of years ago, our other law, SB-1070, that you are familiar with, it is not an accident that our Arizona Chamber of Commerce and our business leaders came out with a very strong message yesterday that they don't want the governor to sign this.

This is going to hurt the state of Arizona's economy and frankly our image. So I hope that the governor of Arizona will veto this and we move on.

(END VIDEO CLIP)

COSTELLO: Actually, similar legislation is working through at least five state legislatures and feeling arguments of gay rights versus individual religious rights and this morning, in Arizona, economic interests are also in play.

American Airlines, Marriott and Apple all urging Governor Brewer to veto that bill. The NFL is also bristling saying it will closely watch the decision in Arizona, which is slated to host next year's Super Bowl.

It's worth noting the NFL moved the 1993 Super Bowl from Arizona because the state's voters refused to make Martin Luther King Day a state holiday. Arizona's governor has a pro-business background that could weigh heavily in her decision.

She talked with Dana Bash who joins us with part of that exclusive interview. Good morning, Dana.

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Good morning, Carol. That's right. Jan Brewer has been here in Washington for a meeting of the National Governor's Association. I tracked her down at the hotel where they have been meeting.

As you can imagine she was reluctant to talk about, which way she will go especially since she is here in Washington and not in Arizona. She is actually heading back today, but she clearly gets the consequences of her decision. (BEGIN VIDEOTAPE)

BASH: The bill is going to hit your desk back in Arizona today. You haven't seen it yet, I understand that. But you are very well aware of what's in it? Where is your mind right now on what you might do?

GOVERNOR JAN BREWER (R), ARIZONA: Certainly, I'm going to go home. When I receive the bill, I'm going to read it and I'm going to be briefed on it. We have been following it. I will make my decision in the near future. I have until Friday or Saturday morning to determine that.

BASH: Now, I've seen some reports of business leaders in your state very upset and afraid of what the damage could be to businesses in your state. The Super Bowl is coming next year and obviously, there are a lot of other potential problems. Is that weighing on you?

BREWER: Of course, I have a history of deliberating and having an open dialogue on bills that are controversial to listen to both sides of those issues and I welcome the input and information that they can provide to me and certainly, I am pro-business and that is what is turning our economy around. I appreciate their input as I appreciate the other side.

BASH: I get as a governor, you have to deliberate. It is your job. But as a person and as a woman and as somebody who understands the plight of all kinds of people, where does your gut lie right now?

BREWER: Well, I am a woman and I don't rely a whole lot on my gut, because I have to look at what it says and what the law says and take that information and do the right thing, but I can assure you, as always, I will do the right thing for the state of Arizona.

(END VIDEOTAPE)

COSTELLO: OK, so Dana, read between the lines for us. What are you hearing behind the scenes?

BASH: Well, right. She was very, very cautious there, understandably. But people in Arizona who know her well say that they are confident when she says she will do the right thing, as you just heard say, for her, that will almost surely mean vetoing this bill.

I am told the main reason is because, again as you heard her say, she considers herself a pro-business governor, who above all wants to protect and promote Arizona's economic interest. She knows there will be economic retribution against her state big-time if the law is on the books.

This law is perceived by many as modifying discrimination. She vetoed a very similar bill last year. That was something I was reminded about by somebody who was kind of familiar with her thinking.

COSTELLO: Got you. Dana Bash reporting live for us, thanks so much.

BASH: Thank you. COSTELLO: This just in to CNN, consumer confidence taking a hit falling from its five-month high. CNN's chief business correspondent, Christine Romans has more. Good morning.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Good morning, Carol. You know, what consumers are saying is they feel like the economy is improving right now, but when they look forward six months, they are concerned it is just not going to last and not going to keep improving.

In particular, consumers telling the conference board they are feeling less confident about business conditions, jobs and earnings for companies going forward. So again consumer confidence slipping from a five-month high.

There is a lot to sort of digest here in the economy right now as we begin the New Year, Carol, because, look, you have had all this weather that is sort of distorting just how strong things are. You have things that are going right for the economy like the stock market is here near record highs.

You have had GDP that continues to grow and has actually been surprisingly strong considering everything we are enduring and record profits and profits rising for companies. Those are the things, the pros in the economy.

But the cons, Carol, mortgage rates are rising. Interest rates are rising. The weather has been poor. That's going to depress economic activity and the job situation is still weak here.

You take it all together, consumers are saying after being as confident as they were in five months, they are a little bit less so when you look out six months -- Carol.

COSTELLO: Christine Romans reporting live, thanks so much. Ted Nugent says he is done with the name-calling. Ted Nugent says he's done with the name calling. He came under fire for calling President Obama a, quote, "subhuman mongrel."

Well, in recent weeks, Nugent has campaigned with Texas Attorney General Greg Abbott, who is running for governor. Abbott said Monday he has no regrets about appearing with new Nugent. As for Nugent, he gave what many called a backhanded apology for his comments. He talked with CNN's Erin Burnett.

(BEGIN VIDEOTAPE)

ERIN BURNETT, HOST, CNN'S "OUTFRONT": I want to get to the question of whether you apologized or not. A lot of people say you didn't apologize. Did you mean it?

TED NUGENT, CONSERVATIVE ACTIVIST, MUSICIAN: Erin, come on, you have this English language down really well. I bet you understand when the question is, do you apologize, and I answer yes. You don't really have to ask that question again. Do you mean it?

BURNETT: But I want to understand why you used the word mongrel when you did?

NUGENT: I'll tell you. I have been a cop in Lake County, Michigan, since 1982 or thereabouts. I conduct federal raids with the DEA and ATF, and the U.S. marshals and the FBI and Texas Rangers, and the heroes of law enforcement.

We are re-arresting fugitive felons who are let out of their cages after murdering, raping, molesting and going after these guys. The adrenaline is something like you will never experience. When we are done with these kind of raids, we get together.

Our hearts are broken we have to face these monsters, mongrels, bad people who are destroying our neighborhoods as mongrels. I knew of no racial reference.

BURNETT: Let me ask you about something else you said about the president though since you are saying there was nothing racial about it. I am hoping you can explain a certain word here. In that same conversation that I played for you where you used subhuman mongrel. You said also said this.

NUGENT: A lot of people call that inflammatory speech. I would call it inflammatory speech when it is your job to protect Americans and you ask me to look into the television camera and say, what difference does it make that I have failed in my job to provide security and which have four dead Americans. What difference does that make? Not to a chimpanzee or to Hillary Clinton, but I guess it doesn't matter.

BURNETT: A chimpanzee?

NUGENT: Yes, Erin, I appreciate you playing that. Do you really think that I reference any race as a primate? I call my buddies in my band chimpanzees when they miss a good guitar lick. I referenced no racial overtones there whatsoever. I was referencing people who would look in the camera when there is four dead Americans in Benghazi.

And refuse to be accountable and say, what difference does it make? My whole life is dedicated to my black heroes. My black Hughes Cal heroes. You know that. I have not a racist bone in my body. That's like your goofball friend claims I am a has-been.

I just celebrated my 50th greatest tour. I have a black guitar player from Detroit. Get over it.

BURNETT: If I called the president who is a black president a chimpanzee, I would and should be fired.

NUGENT: I never called the president a chimpanzee.

BURNETT: Who were you referring to?

NUGENT: You think I hesitate. People who support that it doesn't matter four Americans are dead.

BURNETT: People who looked into the television camera and said that, the people you are referring to? I will leave it to our viewers to decide whether that was a direct reference to the president or not.

(END VIDEOTAPE)

COSTELLO: Ted Nugent, we'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Thousands of North Carolina residents are demanding the nation's largest energy provider take full responsibility for cleaning up the Dan River after a major coal ash fill. Today, 9,000 petitions will be delivered to Duke Energy after several thousand tons of coal ash entered the river from a leaking pipeline.

This week according to a North Carolina newspaper, three weeks after that leak was noticed, the Department of Natural Resources will start testing to see if fish in the river is contaminated. Now the Dan River is in north central North Carolina and used by many communities as its water supply. John Camp from affiliate WTVD has more.

(BEGIN VIDEOTAPE)

JOHN CAMP, WTVD REPORTER (voice-over): For Bill Wood and others we talked to who grew up around here, the spill at Duke Energy's coal ash pond in Eden has changed about everything.

(on camera): You go fishing in this river?

BILL WOOD, EDEN, NORTH CAROLINA RESIDENT: I used to.

CAMP: Would you do it now?

WOOD: No.

CAMP: Swim it?

WOOD: No.

CAMP: Tubing?

WOOD: No.

CAMP: You won't be casting a line. When do you think you will be able to do that?

UNIDENTIFIED MALE: I have no idea.

CAMP: That's something no one seems to have a good handle on, from Duke Energy responsible to the clean up to the state's environmental stewards at the Department of Environmental and Natural Resources.

SUSAN MASSENGALE, NORTH CAROLINA ENVIRONMENTAL AND NATURAL RESOURCES: The truth is we have never had an event like this before. So we are out there looking and determining what the next steps are.

CAMP (on camera): Federal environmental officials tell us the most visible evidence of the spill is still at the spill site about a mile up the river from where we are now. It is like a sandbar. In this case, a coal ash bar. Parts are five feet deep.

Watch this. Watch how fast this water is moving. That's a real problem. We are also told that down the river as far as 70 miles from here, coal ash has been found coating the river bottom.

(voice-over): And it's that sediment that have environmentalists so worried after all life in the river depends on the bugs underneath all that stuff.

JENNY EDWARDS, DAN RIVER BASIN ASSOCIATION: These guys are at the very bottom of the food chain. Everything depends upon them, particularly the fish. We are champing at the bit to hear with a very energetic and specific plan for how to remediate what happened on this river.

(END VIDEOTAPE)

COSTELLO: That report from John Camp of WTVD. Our own CNN investigative correspondent, Drew Griffin is now heading to North Carolina for that petition drop. He joins on the phone. Good morning, Drew.

DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT (via telephone): Good morning, Carol.

COSTELLO: So tell us what your day is going to be like. You are going to this petition drop. What do you expect to find?

GRIFFIN: I think the petition drop itself will be a fairly common occurrence, a kind of photo op if you will. Trying to make sure duke energy has the pressure on it to clean up and take responsibility for this all of which they have said they will do, take full accountability for it. They have the clean-up. So I think the issue here is more of a photo op.

But the big issue is whether or not Duke Energy has, according to the environmentalists, basically, been getting away with this kind of stuff for a long, long time. And whether or not various investigations will actually prove that there has been a much too cozy relationship between the state environmental agencies and this very powerful power company.

COSTELLO: Does this stem from the fact that the governor has ties to Duke Energy?

GRIFFIN: Yes. I mean, the governor doesn't just have ties at Duke Energy. He worked there for almost three decades. You also have to keep in mind that the governor, who has visited the Dan River site. He has met with Duke Energy. He has publicly stated that Duke Energy must clean this up. His old company must clean this up.

He also with the state, sued Duke Energy last year, not to just clean up this coal site but the 30 some coal ash ponds that are across this state. Many are pointing to the cozy relationship he has had throughout his career at Duke Energy as possible concern. There is no real evidence yet but the U.S. Attorney has opened a criminal investigation, Carol.

Asking for all the memos and all the communications between Duke Energy and the state's Department of Environment and Natural Resources to see if there was anything foul going on between these two company and state agencies to see if somehow or another, as I have said, Duke Energy, quote, "got away with something."

COSTELLO: I know you will get to the bottom. Drew Griffin reporting this morning. Thanks so much.

Still to come in the NEWSROOM, sizing up the new galaxy S-5 smartphone. It has just been unveiled with lots and lots of new features. Is it the worth the price tag?

(COMMERCIAL BREAK)

COSTELLO: Samsung is showing off its new smartphone, the tech giant unveiled the Galaxy S5 at the Mobile World Congress in Barcelona, Spain. It has a lot of upgrades over last year's model including a heart rate monitor and a fingerprint scanner.

CNN analyst and host of Tech Bites, Brett Larson, is live in New York. Really?

BRETT LARSON, CNN ANALYST: It is, Carol, all the talk of zombies. We have to have electronic heart rate monitors.

COSTELLO: To see if I am still alive.

LARSON: It is kind of an interesting twist. When we were at the consumer electronics show at the beginning of January, we saw this big trend in wearable technology. The push for wearable technology or what makes it really attractive is all this health care stuff we can get.

We can know how many steps you took and track your heart rate monitor. It's a tiny little thing. It has a nice, high resolution screen, a heart rate monitor on the back. I just took my heart rate. You can fell I have had too many cups of coffee this morning.

It was a little elevated. That information is then going to sink up with the phone so it can keep track of my heart rate, I guess, throughout the day. Or if you are really into physical fitness, a whole lot of apps that take advantage of this information.

COSTELLO: So how much would this cost us if we would like to buy one of these Galaxy phones?

LARSON: No exact pricing has been announced. I am going to speculate it is going to be about $200, $300 with the contract. A lot of cell phone carriers, they are kind of pushing us into this, we don't need you to sign a contract but we are going to need you to pay full price for that phone.

I would expect they would be in the $500, $600 range. Apple and Google is dealing with it. We have kind of been saturated with smartphones. This is the new Galaxy S-5. It is a beautiful phone. It has better battery life, a faster processor. It is just a few steps above where the s-4 was. If you are sitting there using an S-4, you are going to say, I don't want to spend another $500 for a slightly faster phones.

In the realm of cell phones and Tim Cook spoke to this on a recent call with Apple, it is more of a two-year cycle. It is interesting to see that Samsung is following in Apple's pattern, we are going to do big updates every two year. It is slight to the S-4 but a big update to the previous model two years ago.

COSTELLO: Maybe it would be smarter to make cheaper phones so more people could afford them.

LARSON: Samsung has a wider variety of less expensive phones. Apple tried to do that, but it wasn't as popular a selling phone as previous models were. When the 5 comes out, discounting the 4S so you can go get that for less money.

COSTELLO: Brett Larson, thanks for your insight. We appreciate it.

(COMMERCIAL BREAK)

COSTELLO: Just ahead of the NEWSROOM, the new United States military, stronger, smarter and now smaller?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Of course, there is going to be risk.

COSTELLO: Now, comes the real battle. Selling it to the American people.

Plus star running back, Ray Rice, some disturbing video of him dragging his unconscious fiancee through a casino. Something Maryland's governor now calls disappointing. New fallout with charges of domestic violence.

And consumer reports picks the ten best cars of the year. Did yours make the list? Maybe if it is from the outback. NEWSROOM starts now.

Good morning. I'm Carol Costello. Thank you so much for joining me. In Arizona, all eyes are on the governor on whether she'll veto a bill that's become a lightning rod in the battle over gay rights.

In effect, that bill would allow businesses to site religious beliefs and denies service to gay customers.