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Obama, Putin Have Hour-Long Phone Call; Rick Perry Fires up CPAC Crowd; Hiring Picks up in Feb; Hernandez Jailhouse Fight; Pro- Ukraine Rally

Aired March 07, 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: Did you know that the S&P 500 is up 180 percent, almost 180 percent since the stock market hit its low in 2009? Well now the big question is, when all this weather calms down, Jake, and can't be blamed for everything wrong with all these economic reports, will we get a better, more clear picture of the economy. That really is the question everybody wants answered.

That was the opening bell. Already starting in the green.

Jake.

JAKE TAPPER, CNN ANCHOR: All right, Alison Kosik, thank you so much.

To dig a bit deeper, I'm joined now by Monica Mehta. She's the managing principal at Seventh Capital Investment.

Monica, welcome.

We've seen the stock market hit record highs again and again this year, but to frank, those gains are far removed from many Americans, especially the middle class. There are 10.5 million Americans still out of work. Is this the new normal, this high market with the not really trickling down and reaching the rest of the American public?

MONICA MEHTA, MANAGING PRINCIPAL, SEVENTH CAPITAL INVESTMENT: Well, the market's been dislocated from the economy for a little while now because what seems to drive corporate profits has very little to do with what gets people jobs. Corporations have really been doing -- showing better results in the past few years by cutting costs and by accounting maneuvers versus growing top line, meaning selling more to consumers and therefore hiring people. And that's why we're sort of seeing main street or the American worker being left behind while the stock market keeps climbing up and up.

TAPPER: Now, you've said this recovery actually looks more like the beginning of a recession. Explain why.

MEHTA: Well, so the average expansionary cycle, or cycle in which the economy is growing, lasts 63 months. And here we are, 46 months into this recovery. And so if you just look at the numbers, we're actually closer to another recession than another expansion. And so we really should be seeing a lot more momentum this far into the game and I think that's one of the reasons that every American should be concerned, especially when it comes to jobs and being left behind. TAPPER: What do you think is holding it back?

MEHTA: Well, it's really wages. Wages are at the center of everything when it comes to the economy because a person needs to have money in order to buy things. And what's been happening is, and this is a long ward trend, we've been seeing wages stagnate. And when they stagnate, people have to turn to debt to live their lives. And that's a formula that only works so long. You can't just keep tapping into debt forever. And so until we really see good breadwinner jobs again, we're going to be struggling with this economy.

TAPPER: Monica Mehta, thank you so much. We appreciate it.

MEHTA: Thank you.

TAPPER: The Paralympic games are set to begin in Sochi, Russia, but many foreign dignitaries, of course, are not attending. They're staying home as tensions continue to smolder between Russia and the west over Ukraine.

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TAPPER: Aaron Hernandez could be in even more trouble. The former NFL star is already facing a first degree murder charge. Now he can be charged in connection with a jailhouse fight last week. CNN's Susan Candiotti is in Boston.

Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Good morning, Jake.

Yes, as if he doesn't have enough on his court docket, Aaron Hernandez may soon face another criminal charge for that -- over that jailhouse fight. The sheriff telling me things got physical between Aaron Hernandez and another inmate at the jail. The two able to get some hits into each other. One of the two men was not handcuffed.

Now, after an internal investigation, the sheriff is now telling me that he is asking a judge to press a criminal charge of what's called simple assault and battery against Aaron Hernandez. That would be a misdemeanor charge. Neither man was seriously hurt and neither Hernandez or the other inmate needed any medical attention. But the sheriff says the two men should never have been able to come into contact with each other to begin with. It happened in a common area of this high security segregated unit. And so now the sheriff is making some changes.

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SHERIFF THOMAS HODGSON, BRISTOL COUNTY, MASSACHUSETTS: No matter what, any one person comes out, there cannot be any cells open or anyone else allowed out at the same time.

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CANDIOTTI: So today we are waiting for a magistrate to tell us whether he think there is enough probable cause to go forward with this charge that the sheriff is asking for. And if so, there would be a probable cause hearing about this in court. We have reached out the Hernandez's lawyers. They have not gotten back to us. But, Jake, clearly, they can't be too happy about this.

TAPPER: All right, Susan Candiotti, thank you so much.

We're going to take a quick break. We'll be right back.

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TAPPER: Checking some top stories from around the country and around the universe now.

Just outside Minnesota, a bus driver is being praised for safely evacuating his school bus before it burst into frames. All four of the passengers onboard were grade schoolers with special needs. Two of the students were in wheelchairs. Thankfully, no one was hurt. A faulty heater is the suspected cause.

Right now you are witnessing history. This is the first-ever video of an asteroid breaking up thanks to NASA's Hubble telescope. It shatters into as many as 10 pieces, with several of them measuring as wide as four football fields. Scientists are fascinated because they're not sure why it broke up.

Command performance. President Obama and the first lady paid tribute to the Women of Soul, including legends such as Patti LaBelle and Aretha Franklin. The president drew some unintended chuckles when he praised the queen of soul and one of her big hits.

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BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When Aretha first told us what r-s-p-e-c-t meant to her -

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TAPPER: You probably caught that, the president missed the first "e" in the word "respect." Obama said the 1967 song served as a rallying cry for women, African-Americans and everyone else who felt a bit marginalized at the time. The show will air next month on PBS.

And Congressman Darrell Issa is apologizing after this clash with fellow Congressman Elijah Cummings, where Issa turned off the Democrat's microphone, sparked calls for his ouster as oversight committee chairman. In a tweet Issa said he, quote, "wanted to clear the air with Cummings." And he attached an article to the tweet explaining how he took responsibility for what he called an unfortunate incident. Cummings issued a statement accepting the apologizing and saying, in part, "my sincere hope is that as we move forward, we will respect the opinions of all members of the committee."

Returning now to our coverage of the Ukrainian crisis. People are gathering now for a pro-Crimea rally near Red Square in Moscow. CNN's Phil Black is on the phone from the Russian capital.

Phil.

PHIL BLACK, CNN CORRESPONDENT (via telephone): Hello, Jake.

Yes, so I'm standing here next to the big red walls of the Kremlin, next to Red Square in the shadow of Saint Basil's Cathedral. This is where thousands of people have gathered this afternoon to show solidarity, first of all, with the Russian government and its policies on Ukraine, but also, they say, with Russian speaking Ukrainian people in the south and east of the country in particular Crimea and the people there who are now voting to join and become part of the Russian Federation. Thousands of people, lots of speakers on stage, a big sign saying "we are together."

It would seem very likely there's been some Russian government involvement in setting up this rally today. Thousands of people appear to have been bussed in from outside of Moscow. It's a big setup, as I say. And clearly a very -- an attempt at showing that there is very strong support among the Russian people for the government's policies in Ukraine, Jake.

TAPPER: All right, Phil Black, thank you so much.

Next in the new - new in the next hour of NEWSROOM, a better than expected jobs report out for February. But for the nearly four million long term unemployed people in this country, that number does not mean much.

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UNIDENTIFIED MALE: I am not used to not working. I mean, it's something that's ingrained in me.

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TAPPER: Being out of work is not just impacting their wallets, it's taking a toll on their psyches. That's ahead next hour.

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TAPPER: Welcome back to CNN's continuing coverage in the Crisis in Ukraine.

Look at this a group of masked men attacking a freelance journalist. You can see him. They wrestle him to the ground. They point a gun at him. They steal his phone. The journalist told CNN he was filming the armed men with his phone after watching them steal equipment from a TV crew.

And another sign of a press crackdown and a crackdown on dissent -- pro-Russian forces have pulled the plug on two more Ukrainian TV stations in Crimea. One station manager says unidentified armed men entered the TV station and forced them to switch it off and now Russian state TV is broadcasting on that channel -- what a coincidence. Another station said it's now blocked from broadcasting in Crimea. Both stations are still available on cable and on satellite.

As the crisis in Ukraine simmers President Obama continues to talk with Russian President Vladimir Putin to try to find a solution. They spoke by phone yesterday for an hour, we are told, with President Obama stressing that Russia is violating Ukraine sovereignty.

CNN's White House correspondent Michelle Kosinski is live at the White House with more. Michelle what more can you tell us about this phone call.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi Jake right so this is the third phone call since the crisis began between Presidents Obama and Putin. But it doesn't really seem like progress has come from any of them. Although this time the administration did say that both sides understand that there should be a diplomatic way forward and that Russia even emphasized the importance of the U.S.-Russia relationship.

Repeatedly President Obama and other leaders have asked Putin to simply let in international monitors and that was brought up on the call last night as well but then today we see those monitors blocked again from entering Crimea.

There is a real different of opinion here as to what is even happening on the ground leading up to U.S. sanctions yesterday.

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KOSINSKI (voice over): In an hour-long phone call President Obama again urged Russian President Vladimir Putin to pursue a diplomatic solution tell him to have dialogue with Ukraine, to let in international monitors that have been blocked from Crimea this week and pull back his troops to their bases. Putin agreed on the need for diplomacy. But they see the situation differently as did Secretary of State John Kerry and the Russian Foreign Minister after a second day of meetings.

JOHN KERRY, SECRETARY OF STATE: Crimea is part of Ukraine. Crimea is Ukraine.

KOSINSKI: Russia called it's impossible to act in the face of unilateral semi-hysterical views, ultimatums and sanctions. The U.S. went ahead with sanctions the House approved a billion dollar in aid to Ukraine. The administration saying it has grave concerns the situation could escalate further. It wants to be prepared with powerful, flexible tools to keep pressure on.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If this violation of international law continues the result for the United States and our allies and the international community will remain firm.

KOSINSKI: But not for now sanctioning President Putin specifically.

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: We hold Russia accountable for the actions that Russia is taking in this regard.

KOSINSKI: Ukraine again asking for resolution.

ARSENY YATSENYUK, UKRAINIAN INTERIM PRIME MINISTER: President Putin, Mr. Putin tear down this wall, the wall of intimidation, the wall of military aggression and let's build up new type of relations between Ukraine and Russia. We are ready for cooperation but we are not ready to surrender and to be the subordinate of Russia.

(END VIDEO CLIP)

KOSINSKI: Every day, someone says there has to be a dialogue because Russia really hasn't sat down at the table with Ukraine. There have been discussions. Both prime ministers have spoken. There have been cabinet-level talks. But just this week, we saw the Russian foreign minister not sit down with his Ukrainian counterpart even though they were at the same -- in the same place at the same time. He did meet with Secretary of State Kerry twice two days in a row and other leaders but end up saying he did not find common ground with the West. That it was impossible to act in the face of ultimatums and sanctions but that discussions would continue -- Jake.

TAPPER: That's right, Michelle. And if you read the readouts from the White House and then from the Kremlin of that phone call, it is almost as if they are talking about two completely different phone calls.

CNN's Michelle Kosinski, thank you so much.

Rick Perry is the longest serving Governor of Texas in history and while he has yet to decide if his next political step will be a bid for the White House he is joining other potential 2016 candidates appearing before a key group of voters at the Conservative Political Action Conference or CPAC.

CNN's chief congressional correspondent Dana Bash is on site at CPAC in National Harbor, Maryland. And Dana Perry's speech we are told electrified the crowd. Tell us about it.

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: You remember, Jake, back in 2012, the roller-coaster of the Republican primary season. At one point for a long time Rick Perry was considered the favorite because of the way he could electrify a crowd as you said.

Well guess what; that guy showed up here today. He absolutely blew the roof off the place in a way that no other speaker has done so far, talking about some of the themes that we remember from 2012 that maybe he didn't get off so well particularly in some of the debates about the fact that he believes the federal government is too big and it is the states that have the most important role here.

Listen to what he said.

(BEGIN VIDEO CLIP)

GOV. RICK PERRY (R), TEXAS: get out of the health care business. Get out of the education business. Stop hammering industry. Let the sleeping giant of American enterprise create prosperity again.

My fellow conservatives, the future of the nation is upon you. It belongs to you. You have the power to change America. You have the power to speak to our newest hopes and in addition our age-old dreams. You are the path to the future alike on a distant shore. And you represent the renewed hope that America can be great again.

God bless you. And God bless this great country we live in.

(END VIDEO CLIP)

BASH: So, as you can see from the reaction from the crowd, Jake, he was the first speaker. Almost as if they didn't need to have their coffee because he gave them such a jolt with the way that he spoke. It really did stand out as we talked about yesterday. Chris Christie yesterday kind of energized the room as much if not more than others which may have been surprising. But it really doesn't compare to what happened this morning with Rick Perry talking about the fact that there was a rebellion and a battle field for ideas.

Again, important to emphasize, we don't know what his next move is. But certainly, if this is any indication, he seems to be interested and even thinking about a run again. The question is whether or not he's going to be able to capture this Rick Perry as opposed to the Rick Perry who was on the campaign trail in 2012 and really fumbled, especially in those debates -- Jake.

TAPPER: I asked Rick Perry yesterday on my show, Dana, I asked him, what he learned from 2012 that he could bring to 2016 if he chooses to run. He said don't have major back surgery six weeks before entering the race.

BASH: Yes. Fair enough.

TAPPER: He really blames that back surgery for his performance in debates and also on the campaign trail.

But Dana I wanted to ask you one other thing. I have heard some conservative pundits say that the rousing reception that Governor Chris Christie got yesterday in the room that you're standing in had less to do with Chris Christie and more to do with the fact that they feel like he has been besieged and attacked unfairly by the media. It was more of a finger in the eye of the media than it was applause for Chris Christie. What's your sense of that analysis from being in the room, from talking to activists?

BASH: Certainly that was part of it and the fact that Chris Christie chose to play that up -- the common ground that he has with a lot of the activists here in their -- that was a despising the media times these days. That was part of it.

But the other part of it was, you know, Jake, you have covered so many speeches and so many elections like I have. You just have a feeling. You can feel it when a politician has the room. He had the room. There is no question about it. And even people who I talked to afterwards who said they are not going to vote for him for reasons of bridge gate, for reasons of what happened in 2012, the fact that he embraced President Obama. They still said that they really thought that he connected with people and that that was something that they need to look at, especially when they have a Republican candidate who might be running against a Hillary Clinton. And that's something that they think they messed up on in the past not having a Republican candidate who connects -- Jake.

TAPPER: Some other possible 2016 candidates have spoken there. Senator Marco Rubio of Florida, Congressman Paul Ryan of Wisconsin who was the VP nominee last time around, Louisiana Governor Bobby Jindal. Anyone else captured anybody, very quickly, Dana?

BASH: Paul Ryan had a very substantive, very well-written and well- delivered speech that you would imagine it would be, on ideas. Certainly, he had a very nice reception and the same goes for Marco Rubio. He certainly had the room as well, not in the way, I don't think, that Chris Christie did. Maybe you are right. Maybe it is part because they were just fairly fascinated with listening to him.

TAPPER: Right.

BASH: But the thing that we are going to be looking for, just quickly, ahead in the next hour Mike Huckabee. He also is somebody who knows how to hold the room, especially with a crowd like this.

TAPPER: OK. And we'll be watching for that. Dana Bash, thank you so much.

The next hour of CNN NEWSROOM continues after this break.

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