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Pulse Nightclub Owner Raises $50,000 at Community Event; Attorney General Loretta Lynch Expected to Announce She Will Follow DOJ Conclusion in Clinton Probe; Tesla Self-Driving Test Turns Fatal; Airports getting Higher-Level Security Holiday Travel; New Trial Granted to Adnan Syed After New Information Surfaces. Aired 10:30-11a ET

Aired July 01, 2016 - 10:30   ET

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

[10:30:00]

PAMELA BROWN, CNN HOST: The club's owner is using more than half of the $50,000 raised to compensate 38 employees. Those employees have been out of work since 49 people were killed inside the club earlier this month. Pulse's owner has made it clear she intends to reopen the club. No word on when that will happen.

Well, a horrific scene in Japan as a hillside home comes crashing down. This is the result of massive mudslides that have triggered by torrential rains in the area. The area had been evacuated before the home toppled over.

Well good Friday morning to you, I'm Pamela Brown in for Carol Costello. Thanks so much for being here with us. Just 30 minutes from now, Attorney General, Loretta Lynch will take the stage in Aspen, Colorado, when she is expected to announce publicly that she will follow guidance from the FBI and career prosecutors about whether any charges should be filed over Hillary Clinton's use of a private e- mail server. Sunlen Serfaty is following the story for us. Sunlen?

SUNLEN SERFATY, CNN CORRESPONDENT: Well Pam we're told that this announcement, and this plan, has been in the works for months. But the announcement did get bumped up because of the political firestorm that has been caused this week, after that impromptu, 30-minute meeting between Bill Clinton and Loretta Lynch on a tarmac.

Given that Loretta Lynch is the one that's overseeing his wife, Hillary Clinton's investigation into her use of a private e-mail server as Secretary of State. So the fact that the DOJ and Loretta Lynch having to come out publicly in a formal way today, offering something of an explanation of her role in this case going forward. Where they say that she will intend to accept the recommendations, the determinations from the DOJ career prosecutors, and the FBI, whatever that determination ends up being.

Now it's important to note she is not recusing herself in this case. So she clearly will have a role going forward. And some have called for her, in recent days, to recuse herself from this. So it'll be interesting to see if it at all tamps down some of the political criticism coming to her after this, most notably from Donald Trump, Hillary Clinton's opponent. Who has been all over Twitter this morning and an interview saying that this was bad judgment by Bill Clinton.

He also said that this is evidence that the political system is totally rigged. Now we are told that Loretta Lynch, when she speaks in about a half an hour, offers something of an explanation of that role, in that she clearly wanted to do this right now because of all the fallout over that meeting. Pam?

BROWN: Yes, the timing pretty obvious there. Sunlen Serfaty thank you so much. And meantime, a rare warning from the Federal government to owners of older Hondas and Acuras. Stop driving them immediately and get them to a repair shop. A defect in the airbag deployment system could kill the driver or a passenger in a crash.

This dire warning covers more than 300,000 cars and vans from 2001, 2002, and 2003. Especially those located in hot, humid climates. Christina Alessi at CNNMoney is covering this for us. This is especially disturbing for those who own these cars, who are driving them, Christina.

CHRISTINA ALESSI, CNNMONEY CORRESPONDENT: That's right. And this warning is really clearly aimed at getting these cars off the road. And to prevent more deaths from happening. You know, if you look at this, 10 people have already died as a result of these faulty airbags. Eight, specifically, in cars that are issued in this recall.

Now just to put this into context, these recalls were part of a larger recall. And what happened was that new tests show that there was a greater percentage of these bags deploying dangerously. What does that mean? Shrapnel flying out of them.

The tests revealed that there was a 50 percent likelihood that these airbags would deploy in a way that could kill the passenger. That's compared to one percent for the average airbags, here (ph). The good news is that many of these high-risk airbags have been replaced. The bad news is that they're high-risk because these vehicles are also older.

The length of the -- the age of the vehicle makes them more likely to deploy dangerously. So tracking down the original owner can get really tricky.

BROWN: Something else that's on top of mind is this -- all this talk about self-driving systems. But there was a fatal crash when there was a self-driving system test. Is that right?

ALESSI: This is a big story in the auto industry. Because it really throws into question the safety of self-driving, or autonomous vehicles here. What happened was, a tractor trailer was making a left turn. The Tesla was going straight. The Tesla's software failed to detect the white side of the tractor trailer because it blended in with a bright background. The driver did not engage the brakes. The brakes were not engaged.

The Tesla ended up sliding under the tractor trailer killing the driver. And Tesla expressing extreme sadness but also pointing out that 130 million miles of self-driving, or autopilot -- autopilot miles have been driven in the U.S. with no fatalities. This is the first of its kind.

Tesla also pointing out that it tells the drivers to keep their hands on the wheel at all times. Part of what the investigators will be looking at here is what backstops this software has to make sure that drivers are paying attention. And that has been the biggest debate when it comes to self-driving in autonomous vehicles here.

And it comes at a very critical time. Because Tesla has been wanting to expand the appeal of its automobiles. It is very hot in the tech community, now it wants to take it to average, everyday people and get them over the hurdle of this technology in the cars. Also the government is supposed to issue regulations and guidelines to test autonomous vehicles on public roads in July. And it's really unclear how this incident will impact that process, Pam.

[10:36:05]

BROWN: All right, we'll have to see. Christina Alessi thank you so much for that. And still ahead on this Friday, as the 4th of July holiday approaches, U.S. officials are ramping up security in the wake of the attack in Turkey. How one airport is preparing for the weekend, up next.

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[10:40:35]

BROWN: Well top U.S. officials are promising, "enhanced security" at the nation's airports and other top destinations this weekend as some 43 million people are expected to travel for the July 4th holiday.

I want to bring in CNN's Chris Frates who's getting an upclose look at some of those preparations underway. He joins me now from Reagan National Airport in Washington. It looks pretty quiet behind you, Chris.

CHRIS FRATES, CNN CORRESPONDENT: Yes it's pretty quiet. The whole morning rush is over Pam, but it's clear that this July 4th holiday weekend travel is underway. And while it's quiet now, the thing that has been constant is this ramped up security. We see dogs out here, we've seen law enforcement with long guns.

We've also seen some plain clothes police officers just kind of checking things out. And it's not just here at DCA, we're seeing this across the country. In fact, in Atlanta we have undercover law enforcement. And they're particularly interested in these soft target areas. Here where I'm standing, on the departure side before you go through security, outside by the curbside. And that's of course because of the attacks in Turkey, Istanbul, and also in Brussels.

In fact, I talked to John Pistole. He's the former TSA Administrator. And I asked him, "what should people do if, God forbid, there were an active shooter situation?" Here's what he said: (BEGIN VIDEO CLIP)

JOHN PISTOLE, FORMER ADMINISTRATOR, TSA: The three basic tenets are, run, hide, fight. So if you hear shots, run away from those shots. If you can't run, for whatever reason, there's multiple shooters or something, then hide. Do your best job of that. And only as a last resort, then you fight. You try to defend yourself.

(END VIDEO CLIP)

FRATES: Now of course officials always worried about terrorism, particularly around these big holiday weekends. But it's important to point out, a homeland security official telling CNN, "no credible, specific threats," this holiday weekend. And that kind of squares (ph) from what I heard from the airline industry, as well.

I talked some -- to some officials and executives there. They don't have any heightened concerns this holiday weekend. They're hoping that the TSA lines will move quickly. They've invested millions of dollars to make sure travelers can move through a little bit faster.

But I've got to tell you, Pam, a little bit earlier this morning it was packed here at TSA. A little bit of a lull. But I'm sure as we get into the afternoon and people try to get out of work early and get their holiday started, we may see that again. So recommending getting here a little bit early this afternoon, Pam.

BROWN: Good recommendation. Chris Frates thanks so much. And meantime the Turkey attack is heightening concerns that a suicide bomber will strike in the United States. Many Americans feel it's bound to happen. After all there have been more than one ISIS inspired attack in our country. But most involve guns.

Of course the Boston Marathon terrorists used bombs, but they did not blow themselves up. With me now to discuss, Daniel Benjamin, former U.S. Ambassador at large and State Department Coordinator for Counterterrorism. Welcome sir, thank you for coming on this show.

So the CIA Director says that he believes ISIS will carry out an Istanbul style attack on the U.S. soil, essentially. That it's only a matter of time. Why hasn't it happened yet?

DANIEL BENJAMIN, FORMER U.S. AMBASSADOR AT LARGE, STATE DEPARTMENT COORDINATOR FOR COUNTERTERRORISM: Well actually I think what he said was, he's sure ISIS is thinking about and trying to figure out how they can pull off such an attack. I don't think he said that it was an inevitability.

I do think that that is absolutely correct. And that is why we are constantly checking our security measures, checking to ensure that soft targets like airports are protected at their entrances and exits and the like. And why we're always trying to learn from the last attack.

Now it is possible, it could happen, anything can happen. But I think it's much more likely that we will see more attacks along the lines of San Bernardino or Orlando. Because on the one hand, we have so many weapons, so many assault rifles available. And also because it takes a team to do a suicide bombing. And we've been very good at breaking up cells.

There've been very few cells, in fact, that have emerged in the United States. And it's very hard to get into the country for bad actors coming from outside. So I think it's less likely, but again you can't rule out anything.

BROWN: Right. And for the suicide vest, not only does it take more people to make it, but also it's harder to acquire the materials in the United States, from what I understand. And in terms of the possibility of it happening. In your view, is it more likely that we will see someone who is radicalized in the U.S. -- like what we saw in San Bernardino and Orlando -- launch an attack? Rather than someone who is in Syria with ISIS and infiltrates the U.S. and launches an attack?

[10:45:15]

BENJAMIN: So I think it's much more likely that we'll see again, someone who was radicalized here. Remember, really -- with the exception of Tashfeen Malik, the wife of the other attacker in San Bernardino, who is a green card holder, only been in the country for a year or two -- every single incident that we've had in the United States involved people who were either green card holders or citizens, and people who'd been here for many years.

So I think that is the predominant paradigm and it is possible that someone could get in. But it is pretty unlikely. Our intelligence and security folks have really improved the protocols, have improved security for travel to the United States, enormously. As John Baron (ph) also pointed out the other day at the Council On Foreign Relations, since 9/11. And that has made a big difference for our security.

BROWN: And now let me put up this picture. We now have a picture of the alleged Turkey attack planner. He was added to the U.S. terror list last year, we're told. And out of fears he was plotting attacks on Turkish and U.S. facilities. And then lo and behold we see this attack at the Istanbul airport. And apparently he was a mastermind of it. Will his success in Istanbul influence counterterrorism strategies in the U.S.?

BENJAMIN: I'm sorry, can you repeat the last question?

BROWN: Right, so this is someone who has been on the U.S. terror list in the United States -- we'll put up his picture again -- the mastermind of the Istanbul attack. Will his success in Istanbul, someone who's been on the radar of European authorities as well as U.S. authorities, change counterterrorism strategies here in the U.S.?

BENJAMIN: As I said, whenever there is a successful attack, one that results in casualties, we reevaluate all of our different procedures to ensure that we can defend against such attacks. It is incredibly hard to defend against suicide attacks. That is axiomatic in this business and that is one of the really difficult things that we struggle with.

His success may also inspire copycat attempts but again, suicide vests are not simple to put together, certainly compared to getting hold of assault weapons and simply shooting up a soft target.

BROWN: All right, Daniel Benjamin, thank you very much for that. And still to come on this Friday, a historic vote thousands of miles away, sending shockwaves through the U.S. financial markets. What the EU referendum is doing to mortgage rates in this country. Up next.

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[10:51:50]

BROWN: Well the ripple effects of that historic EU referendum still rocking the U.S. financial markets. Mortgage rates are plummeting to three-year lows. Which of course could mean a big boost for the housing market. But Wall Street is still volatile and reeling from a wild ride of triple digit swings this week. CNN Business Correspondent Alison Kosik is following the story and she joins us live from the New York Stock Exchange. Good morning Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning Pamela. Can you say roller coaster? That's what kind of week it was. It was a wild week but the good news is it's ending on a high note. The DOW is ending in the green, overall for the week. But oh the swings we saw.

Did you know in a matter of six sessions, the DOW lost almost 900 points, and then gained back almost 800 points. And what that was, was reaction to the UK leaving European Union. One upside to this, lower mortgage rates. Rates this week hitting their lowest levels in three years. The average on the 30-year fixed at 3.48 percent. That's down from 4 percent a year ago. And the 15-year fixed is sitting at 2.78 percent.

And we saw these rates go down, Pamela, because investors have been rushing into the safety of U.S. Treasury bonds. That move causes the yield on those bonds to fall and mortgage rates are tied to those yields. So this is even better if you're in the market for a new home, the Brexit vote basically took the possibility of a rate hike off the table. So you could expect rates to stay low over the next few months, at the very least.

So everybody wants to know, is this it for the volatility? Is it smooth sailing from here? Not so fast. With so many unanswered questions about how the Brexit's going to play out, expect more uncertainty, expect more volatility, that's going to rule the market. But as we begin a new month and a new quarter today, I'd say you're probably safe to look at your 401k today. The DOW is up almost 3 percent for the year.

And Pamela, just to think, a few days ago, the DOW was in the negative for the year. So how fast things can happen here on Wall Street.

BROWN: And like you said, it could still be a roller coaster ride moving forward. KOSIK: Absolutely.

BROWN: Alison Kosik, thank you so much for that, we do appreciate it. And we're going to check our top stories now, on this Friday morning. Some of the victims of the Aurora theater massacre are being billed $700,000 to pay the legal expenses of the theater owner. Cinemark, which owns the theater, won a lawsuit brought by about 30 victims, claiming the company should be held responsible for the mass shooting in which 12 people died and 70 were wounded. Colorado law allows the winner of a civil suit to go after the losing side to recover legal expenses.

An eight-year old boy is fighting for his life after nearly drowning in a pool on a Royal Caribbean cruise ship. The incident, forcing the ship bound for the Caribbean, to return to port in New Jersey. The coast guard says the boy was in the water for eight to ten minutes. An NYPD chopper airlifted the unconscious child to the hospital where he is still listed in critical condition.

A Maryland judge has granted a new trial to Adnan Syed, the first subject of the podcast "Serial." Syed's conviction was vacated based on an alibi witness who was never contacted by the defense but was later featured in the podcast. And the judge found the defense also failed to show that cell tower records are not always reliable in pinpointing the person's location. That evidence was a key factor in Syed's conviction. Syed has been serving a life sentence for killing his girlfriend back in 1999.

And Apple is turning high tech in its effort to stop video piracy. The company has applied for a patent for an infrared signal that can disable cell phones from making unauthorized recordings at concerts, movies, and other venues. According to the patent filing, the blocking signal would only affect phone cameras if they are aimed in a certain direction.

Well thank you so much for joining me. I hope everyone has a great holiday weekend. I'm Pamela Brown, you're going to hear Loretta Lynch speak on "AT THIS HOUR" with Berman and Bolduan right after this break.

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