Return to Transcripts main page

CNN Newsroom

Israel Strikes At Hamas After Teens Killed; Hurricane For July 4th Weekend?; Gas Prices To Hit Six-Year High; Win Or Go Home: U.S. Versus Belgium At World Cup; GM Recalls Another 8.4 Million Vehicles

Aired July 01, 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: Good morning. I'm Carol Costello. Thank you so much for joining me. Israeli Prime Minister Benjamin Netanyahu calls the people who killed three teenagers in the West Bank human animals. Hamas says any retaliation would open the gates of hell. Now tensions are quickly escalating in the Middle East as Israel strikes back against Hamas.

There is just one problem, Hamas continues to deny any role in the deaths of these three denies any role in the death of these three teenagers. A little known group is actually claiming responsibility, still overnight, the Israeli military launched more than 30 air strikes against Hamas targets sites in Gaza. The homes of two suspected kidnappers were also destroyed.

And this hour, Netanyahu and the Israeli president, Shimon Peres are taking part in the funeral for these three teenagers. Our senior international correspondent, Ben Wedeman is in Hebron with more for you.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Murdered in cold blood is how Prime Minister Benjamin Netanyahu describes the death of three teenagers whose bodies were discovered in a field near Hebron.

UNIDENTIFIED CALLER: Just found both bodies in a hole. Murdered them in the beginning. I don't know exactly all the details.

WEDEMAN: Three young men went missing from a Jewish settlement, 19 days ago while trying to hitch hike home from the southern West Bank. The aunt of the teens described her nephew as young and innocent and called news of the teen's death too sad to imagine.

LEEHY SHAAR, AUNT OF ISRAELI VICTIM GILAD SHAAR (via telephone): They just want to kill innocent boy. You tell me. What do they want?

WEDEMAN: Israel immediately lashed out at Hamas launching air strikes throughout Gaza shortly after the bodies were found.

RON DERMER, ISRAELI AMBASSADOR TO U.S.: We know who committed this action, it was members of Hamas in the Hebron area. The prime minister was very clear who did it and that they will have to pay a price for this. It's important for Israel to send a message to Hamas that this is completely unacceptable and we won't tolerate it.

WEDEMAN: Hamas denied it was behind the killings, but warned that if Netanyahu brings a war on Gaza, the gates of hell will open to him. But now a Palestinian news agency says a little know group whose name translates as "Supporters of the Islamic State" is claiming responsibility.

(END VIDEOTAPE)

COSTELLO: All right, we understand the funeral is getting under way for these three teenagers. They will be honored and buried together, and we also understand that the Prime Minister Benjamin Netanyahu will be making remarks of the boys' funeral. We are going to dig deeper into this topic and the ramifications it has for Middle East peace a little later in the NEWSROOM.

In other news this morning, a strong storm off the Florida Coast could turn into a hurricane and put 4th of July plans for millions in jeopardy. The storm is expected to march up the east coast where millions will be spending their holiday weekend at the beach.

So let's head to New York at Indra Petersons to tell us some bad news. Good morning.

INDRA PETERSONS, AMS METEOROLOGIST: Unfortunately, we are talking about the storm that could be developing into a hurricane, like you said, Carol, right around the 4th of July. This is already a tropical depression, but likely to form into a tropical storm as early as today. At 35-mile-per-hour winds, that makes it a depression, but 39 miles per hour that's all it takes to be a tropical storm.

So yes, this is likely to be Arthur and all the models are in consensus. Take a look at them. They are all bringing them along that coastline before curving it out to sea a little bit. But still seeing those effects all the way to the northeast, right on the 4th of July.

Let's take a look at what's expected here? At 40-mile-per-hour winds, tropical storm strength expected later this afternoon. And tomorrow, heading to Florida, that's where we see the biggest impacts tomorrow. Then as we go into the Carolinas, and through the next days, you are now talking about Wednesday into Thursday, that's where you are going to sees those effects.

And then Thursday night into Friday, those very early morning hours, is when we expect it to turn into a category one hurricane. There's a couple of things to think about. Your entire weekend is not ruined as it will move out quickly. Look at it closely out towards Florida, again we talked about Thursday, into the Carolinas.

This is kind of a double whammy is what I'm calling it. Remember that big system that brought all that heavy rain through Chicago yesterday, that cold front is bringing severe weather and pushing to the east coming in from the west. That's going to line up with all this moisture to this category one hurricane. The two coming together will bring the threat of some very heavy rainfall into the northeast and into New England as well. That's definitely you are going to have to consider there is impact of both of them. There you can see that severe weather threat already out there through New York and back in through Arkansas. It's the combination of both that will be affecting the northeast -- Carol.

COSTELLO: I'm very sad, Indra, for myself.

PETERSONS: No friends today for me.

COSTELLO: Indra Petersons, thanks so much. If you manage the miss the rain, gas prices will put a damper on your weekend. Prices are expected to be at their highest level in six years. The national average for gas right now, $3.67 a gallon and it's only expected to go up as we get closer to July 4th. Alison Kosik live in New York.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It's not as dire as you think, Carol. Higher gas prices kind of becoming American as apple pie, as you shell out money for hotdogs and hamburgers, you'll be digging a little deeper for gas. As you said, the national average price for a gallon of gas right now is around $3.67. It's going to stay right around $3.67, $3.68 a gallon around the 4th of July weekend. So if you're keeping track, that's 20 cents a gallon higher than last year at this time.

It's the highest average price since 2008. What usually what happens in gas prices is fall in June, but we didn't see that happen this year mostly because of the turmoil in Iraq, which is a key supplier of global oil. But I want you to look on the bright side. The national average for the price of gas is nowhere near the all-time high of $4.11 a gallon. We hit that back in 2008. That's when crude oil topped $140 a barrel. Right now, it's under $106 a barrel. We're not even close to that record highs.

COSTELLO: OK. Glass half full, glass half full. Thanks.

All is on the line for U.S. soccer today. Knock-off Belgium or get knocked out. The U.S. team is shooting for its first World Cup quarter final berth since 2002 and while millions will be following from back home, thousands of Americans will be at the match in person in Salvador, Brazil, including CNNs' Chris Cuomo. Andy Scholes is not there. He is here with me in Atlanta. But Chris, you're the lucky one. I understand you ran into some really crazy fans?

CHRIS CUOMO, CNN CO-ANCHOR, "NEW DAY": I really did. It's infectious. I caught the fever, Carol. I got the whole we can, I believe, we believe that we can win. I caught it here because second to Brazil, the U.S. bought the most tickets and it's not about the numbers. It's about the intensity. This sport has made a move.

This is a cultural flash point not just a soccer tournament back in the U.S. They are behind this team almost an Olympic feel down here. We've all found our way to this city in Brazil looking for the same thing, a U.S. win. In so many ways they have already won. But there is one guy I want you to meet, Carol. He's a former president, his name is Teddy Roosevelt and here he is transformed, he's Teddy Gooalsavelt. He is a symbol of the U.S. passion. Meet this guy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: My name is Mike Tamico, but I'm better known as Teddy Goalssavelt.

COUMO: Teddy Goalssavelt.

UNIDENTIFIED MALE: Teddy Goooalsavelt.

CUOMO: I said wrong. We will try again. Teddy Goooalsavelt.

UNIDENTIFIED MALE: Much better.

CUOMO: What is the goal of being Goalsavelt?

UNIDENTIFIED MALE: It's to motivate people here to help the U.S. soccer team win another match.

(END VIDEO CLIP)

CUOMO: It's all about dead presidents, Carol. When you start channelling the dead presidents and they start taking on to the soccer mentality, you know, you've made it.

COSTELLO: It's amazing. Well, I like your spirit. So Andy, tell us what the U.S. needs to do to win.

ANDY SCHOLES, CNN SPORTS: We are the underdogs in today's game so we're going to need a lot of things to go right for us to get the win. Let's take a look at what the keys to victory will be for Team USA. Number one, don't allow an early goal in this game because that would be really bad news considering Belgium has got a great defense. They have only allowed one goal in their three games and it was on a penalty kick.

If they get a goal early on, they are going to be able to sit back even more. That would be bad news. Number two key to victory, help Clint Dempsey. We need someone to help him put pressure on Belgian's defense, getting quality shots has been one of Team USA's biggest problems thus far.

Hopefully Jozy Altidore being back in the mix for today's game will help. Number three, Tim Howard just being Tim Howard. He's been phenomenal so far. If we were able to get a win today, Carol, you can bet Howard is going to have to come through with some big time saves.

COSTELLO: Go, Tim Howard. Andy Scholes, Chris Cuomo, thanks to both of you. Still to come in the NEWSROOM, General Motors in the hot seat again. Another round of recall, this time more than 8 million cars. CNN's Poppy Harlow has that story for you. Good morning. POPPY HARLOW, CNN CORRESPONDENT: Good morning to you, Carol. This marks the single biggest day of recalls for General Motors. All year we're talking more than 8.4 million cars. A lot of them in the U.S. and a lot of them because of another defective ignition switch. That's straight ahead.

(COMMERCIAL BREAK)

COSTELLO: From back to worse, General Motors announcing another recall. This time more than 8 million cars worldwide. The company says most of recalls are because of a defect with ignition switches. Sound familiar? Of course, it does because it's the same problem the company failed to disclose for more than a decade.

Just yesterday, GM offered to pay at least $1 million to each family who lost loved ones because of that very problem. The latest problems have been link to three deaths, and seven crashes and eight injuries. In all, GM has recalled nearly 30 million cars this year. Let's bring CNN's Poppy Harlow in New York. It just seems never ending.

HARLOW: Yes, and this is likely not the end of the GM recalls. This is a company that is going through every single one of its vehicles, saying is there anything slightly wrong, potentially dangerous, if so, we're going to recall them. Because they have come under fire for not disclosing a deadly defect for more than a decade.

This ignition switch is a really big deal because if it gets knocked off while you are driving, the car turns off. Your air bags don't work, your power steering doesn't work, et cetera. Take a look at the latest cars that they are recalling because of the ignition switch defect.

There is a lot of them here. I want to go through them. You've got first of all, Chevy Malibu, Oldsmobile Intrigue, Oldsmobile Alero, Pontiac Grand Am, Chevy Impala, the Monte Carlo, Pontiac Grand Prix, Cadillac CTS, Cadillac SRX, a lot of models and a lot of years covered here.

Again, this is going to cost them another $500 million, but they do not want to be accused of not telling the public about a defect because frankly that whole mess has cost them a billions of dollars and as you know it cost at least 13 lives.

COSTELLO: And speaking of that, just yesterday, Ken Feinberg announced what GM is offering to pay victims who died or injured as a result of those defective ignition switches. So I know you talked with some of the victims' families. Are those families going to participate?

KOSIK: Some are thinking about it and they are going to see what they are offered. Some are not. Really key here if the victims' families and the victims participate in this and sign off and accept money from GM, they totally give up their right to sue this company. One mother who lost her 29-year-old daughter told us, she wants her day in court.

This isn't about how many millions of dollars. It's not going to bring her child back. Some of them only want to make a statement they believe they can only make through trial. GM has put no cap on the amount it will pay out. This really stood out to us. Listen.

(BEGIN VIDEO CLIP)

KENNETH FEINBERG, MEDIATION ATTORNEY: This program is to compensate victims. If you want punitive damages, if you are determined to wage a litigation war against GM and try to secure millions in damages, don't come into this program. This program is designed to fully compensate victims and their families.

(END VIDEO CLIP)

HARLOW: So this is the question, Carol, that these families are going to have to decide. Do they want to accept the money? Do they want to try to move on as best they probably can or do they want to fight this out in court? I will tell you there is a big roadblock to fighting GM in court. Their 2009 bankruptcy gave them legal protection from any claims pre-2009.

So if victims or their families had crashes before 2009, that is technically the old GM, they are going to face a real uphill battle in court. Meantime, Carol, a number that just came out, GM just posted their best sales in June since 2007. So all these recalls --

COSTELLO: Come on. You would think it would be worth nothing.

HARLOW: No, because first of all, consumers are not focusing on the past with GM and these older cars. GM is building pretty strong cars right now and frankly recalls do not translate into hurting sales in the long term for these automakers. Important to our viewers, go to GM recall on our web site, every single car is on that list. It's important to know if your car is and take it to get fixed right away.

COSTELLO: Absolutely. Poppy Harlow, thanks so much.

Still to come to the NEWSROOM, a new and frightening picture that terrorists are making for Iraq and its neighbors. Is it propaganda or a new reality? We'll talk about that next.

(COMMERCIAL BREAK)

COSTELLO: Checking some top stories for you at 20 minutes past, the FBI says it will talk to the once missing Detroit boy who was found hiding in his father's basement. The bureau has scheduled an interview today with 12-year-old Charlie Bothuell. Detroit police say any charges against Charlie's parents will depend on what the FBI finds out from this interview.

The NCAA is reopening an investigation into the University of North Carolina's so-called paper class scandal. At issue is whether the school committed academic fraud by allowing athletes to take easy classes to get good grades between 1997 and 2011. UNC acknowledged the probe has been relaunched, but will not comment further.

New terrorism fears could mean tighter security at the airport. U.S. officials are considering new security measures over concerns that the al Qaeda in the Arabian Peninsula is developing more sophisticated explosives designed to get pass screening devices. U.S. officials tell CNN that there is no imminent threat or plot, only that another vulnerability has been identified.

It is a startling picture, a loyal follower of the terrorist group, ISIS, walking on a deserted street in Syria. But it is the new realty Iraq and Syria face. The group released a new audio recording, claiming a religious super state, or caliphate, proclaiming their leader as the next Mohammed. And they are demanding that Muslims around the world follow their rules.

In the meantime, the United States is sending 300 more troops to Iraq to help push back on this fast moving ISIS surge. So let's talk about this. Arsalan Iftikhar is the senior editor of the "Islamic Monthly" and founder of the muslimguide.com. Welcome.

ARSALAN IFTIKHAR, SENIOR EDITOR, "ISLAMIC MONTHLY": Good morning, Carol. Always good to be with you.

COSTELLO: Always good to have you here. So when you hear that the leader of a terrorist group like ISIS is saying he's the next Mohammed, what goes through your mind?

IFTIKHAR: Well, a few things, Carol. First of all, he's not saying he's the next Mohammed. He's saying he's the next caliph. And basically what the caliphate historically has been the Islamic society after successive generations of the prophet. There are 57 of them Muslim majority nations, that would consider themselves Islamic nations. None would have the audacity to call them the caliphate. This is a strategic play by is. This might be the worst one they have had to date.

COSTELLO: The Sunni seem to be on their side in Iraq. You are saying this might turn the tide?

IFTIKHAR: Obviously, over 1.2 billion Muslims listen to ISIS claiming to be the caliphate. Yes, right. It seems very brutal beheadings, executions in the northwest of Iraq and northeast of Syria for people who don't follow them, so essentially they are not trying to be a democratic political super state. They are essentially trying to be worse than al Qaeda. You know things are bad when even al Qaeda themselves distance themselves from ISIS saying, hey, listen, these guys are a little too cray-cray even for us.

COSTELLO: Still they made enormous in roads into Iraq and in Syria so how do you explain that? They crucify people?

IFTIKHAR: They do. It's horrifying and as Muslims we absolutely condemn that brutality. We've found that they have been able to, you know, essentially bank rob and steal $400 million from Iraqi banks near Mosul. It's going to be interesting to see other fighters who are more moderate tackle ISIS as ISIS tries to expand its scope into Syria and into Damascus. I think it is going to be a regional issue. I think Iran is going to be a big player as ISIS is primarily targeting Shia shrines in Iraq. I think other western nations are going to try play a big role in trying to neutralize ISIS in Levant and in Syria and in Iraq.

COSTELLO: We'll see. Arsalan Iftikhar, thanks so much for your insight. We appreciate it.

IFTIKHAR: Thank you, Carol.

COSTELLO: Still to come in the NEWSROOM, is religious freedom under attack in America? Some conservatives, actually many conservatives say yes and they are applauding the Supreme Court for standing up for Hobby Lobby. So is this just the first in a series of cases heading toward the courts around the country? We'll talk about that next.

(COMMERCIAL BREAK)

COSTELLO: Good morning. I'm Carol Costello. Thank you so much for joining me. Hobby Lobby takes on Obamacare and wins big. The U.S. Supreme Court backing the retailers claim that a contraception mandate violates its religious rights while the justices say their ruling is narrow and only applies to closely held corporations, will it be enough for those who say religious freedom is under attack in this country?

Let's talk about that. Russell Moore is the president of the Ethics and Religious Liberty Commission of the Southern Baptist Convention. Carmela Martin is the executive vice president for policy at the Center for American Progress. Welcome to both of you. Russell, do you see this as the first victory in a long war?

RUSSELL MOORE, SOUTHERN BAPTIST CONVENTION, ETHICS AND RELIGIOUS LIBERTY COMMISSION: I see it as the first victory in many, many court cases because we're dealing with religious freedom right now that is under assault in so many different ways in this country and it's a good step toward restoring what's a fundamental American value which is religious liberty is our first freedom and without that, we don't have any other freedoms because the government that can be God over the conscience is a government that can do virtually anything. This is a good first step in that regard.

COSTELLO: Carmela, in your mind is there really a war against religious liberty in this country?

CARMEL MARTIN, CENTER FOR AMERICAN PROGRAM: I don't think so and I think this decision actually is a blow against religious liberty. It turns religious liberty on its head. Religious liberty isn't just about the government not favouring one religion over another.