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NEW DAY

Cruz, Paul Spar Over Iran; Romney May Decide On 2016 Within Two Weeks; Race To Save Hostage Held By ISIS; Businesses Brace For Blizzard

Aired January 26, 2015 - 07:30   ET

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


CHRIS CUOMO, CNN HOST: All right. This is a live look at New York City. And you can see how horrible it is. No. The blizzard hasn't started yet. Right? What we're worried about is what is to come. We're being told it is a potentially lethal combination of snow and wind. And really, the wind is the big factor: 50, 60, 70 miles an hour. Imagine that on top of heavy snow, like an inch an hour.

So here's the exposure: 20 million people are under a blizzard warning. That means it is more likely than not that it happens to you. Twenty-three million are under winter weather advisories. That means there is a significant chance this could happen to you, so pay attention.

Thousands of flights in and out of the northeast already being cancelled preemptively because they're seeing the same things that we are telling you right now, the winds again expected to be particularly bad this time, 75 miles an hour is hurricane strength so imagine that's what Chad has been telling us this morning, snow hurricane, bad combination -- Mich.

MICHAELA PEREIRA, CNN ANCHOR: All right, government officials in Tokyo are scrambling to save the life of a Japanese hostage being held by ISIS. A second Japanese hostage has already been beheaded by the extremist. ISIS is now offering to spare the remaining hostage in exchange for the release of a convicted female bomber, who is facing the death penalty in jail in Jordan.

ALISYN CAMEROTA, CNN ANCHOR: A rescue operation is under way to free hundreds of miners trapped in Eastern Ukraine. It turns out they too are casualties of ongoing violence there. They were trapped after shelling hit an electrical substation. Luckily more than 100 of the 500 trapped are now freed and officials expect everyone to be out shortly they say.

Meanwhile, Ukraine's president says intercepted radio and phone conversations prove that Russian-backed rebels were behind a rocket attack on a city in Eastern Ukraine. Thirty people were killed in that attack.

CUOMO: Ready to see how those bets on Miss Universe panned out? Here she is, Paulina Vega of Colombia crowned last night in Miami, beat out 88 contestants.

CAMEROTA: I can see why. CUOMO: How about this, the 21-year-old says she's retiring. Why because she wants to study business administration. That's a cool decision. Miss USA Mia Sanchez from Vegas runner up, not bad.

All right, let's get to "Inside Politics" on NEW DAY with John King. John King, sorry you didn't make it to the final cut, my man, swimsuit killed you.

JOHN KING, CNN HOST, "INSIDE POLITICS": You know, I was just about -- yes, swimsuit always kills me. The Republicans had an event just liked that over the weekend in Iowa. It looked exactly the same. Happy Monday to you, guys. Brace yourself, prepare for the snow.

I shouldn't joke about it. If you feed supplies, get out there and get them, but snow is kind of fun sometimes. Let's go "Inside Politics" here in Washington this morning.

With me to share their reporting and their insights, Jackie Kucinich of "The Daily Beast" and Jonathan Martin of "The New York Times."

It was a beauty contest out in Iowa over the weekend and then there was a follow up last night the Koch brothers, we have what we call the -- they used to call it the invisible primary. It's not so invisible now.

All these events around the country, candidates go around and try to curry favor with people. The Koch brothers are big donors. Watch this exchange. This week in the Senate those who want to add the prospect, not automatic sanctions, but the prospect of additional sanctions against Iran over its nuclear program.

I want to move their bill this week. The president doesn't like it. Look at this exchange here, it tells you a lot about the differences, not only between the parties, but within the parties. Here is Ted Cruz and Rand Paul disagreeing over Iran.

(BEGIN VIDEO CLIP)

SENATOR TED CRUZ (R), TEXAS: We are allowing Iran to continue building centrifuges and enriching uranium. They have been negotiating for two years. This is the worst negotiation in the history of mankind.

SENATOR RAND PAUL (R), KENTUCKY: What are we going to do? Are you ready to send ground troops into Iran? Are you ready to bomb them? Are you ready to send them into Iraq? Do you want them in Syria, in Libya, the place is a mess. It's been a mess for a thousand years. We have to think about what really are the practical results of not negotiating.

(END VIDEO CLIP)

KING: This will be a dividing line on Capitol Hill in the coming weeks. It will also clearly be a dividing line in the Republican presidential primary. JULIE KUCINICH, "THE DAILY BEAST": Right. What struck me about this is Rand Paul seems very determined to be kind of the reasonable Republican in the room where he used to be kind of more on track with his father, the non-interventionalist-type thing.

Now he's saying, OK, well, you know, maybe sanctions, but let's talk about diplomacy, where Ted Cruz has kind of a bombastic language and Rubio has been very hawkish. So you will see that play out.

JONATHAN MARTIN, "THE NEW YORK TIMES": Yes. To me, it wasn't that Rand Paul is isolated. There is fought really other candidates in the race. You see Senator Paul there trying to basically say, look the alternative is 100,000 ground troops. In the play, it's going to be a real challenge for him because the instinct on his party on this kind of policy is always going to be towards the more hawkish side of things.

KING: At the same event. A lot has been said about Senator Ted Cruz, he is the Tea Party favorite from Texas. One thing that's probably never been said about Ted Cruz is that he's subtle. He tends to speak very clearly.

The Koch brothers, if you haven't followed campaigns in recent years, a lot of money, as in millions and millions to Republicans and conservative causes. Ted Cruz would like some of that money and made that pretty clear.

(BEGIN VIDEO CLIP)

CRUZ: There are a bunch of Democrats who have taken as their talking points that the Koch brothers are the nexus of all evil in the world. I admire Charles and David Koch. They are businessmen who have created hundreds of thousands of jobs.

(END VIDEO CLIP)

KING: And please send money.

KUCINICH: Right. I can't imagine why he would say that at a Koch brothers' event.

MARTIN: Even the folks (inaudible) like slowly applause and (inaudible) --

KING: But how important is -- we can laugh about it. But how important is the Koch primary, if you will, because they have a number of conservative organizations. They did prove at the grass roots level. They organized a lot. They spent a lot of money. Right now, they're funding a huge study of what happened in 2014 looking at the ads and the voting --

MARTIN: It's effectively a parallel party with the RNC so it's certainly relevant. Look, to me, it's most relevant, John, if they decide to throw us behind. That's not the question. They will pick a candidate. KUCINICH: Right, they are going to support the Republican nominee no matter who win, but yes, leading up to it, that's the question. Yes. That the question.

KING: We had some questions about whether Chris Christie would wait or whether he would get all in. He hasn't announced the campaign yet. He says he is seriously considering and exploring it. Friends of Chris Christie have now started a PAC, Leadership Matters, to help support a Christie candidacy.

Chris Christie was at this Iowa event this week and listen to him here making the case, look, we are going to disagree from time to time but --

(BEGIN VIDEO CLIP)

GOVERNOR CHRIS CHRISTIE (R), NEW JERSEY: Now, I'm sure you will not agree with me or any other candidate on every single issue. In fact, let me give you some advice. If you want a candidate that agrees with you 100 percent of the time, I'll give you one suggestion, go home and look at the mirror. You are the only person you will agree with 100 percent of the time.

(END VIDEO CLIP)

KING: He loves that line. He's used it before. But in Iowa, just going was interesting. It's a pretty conservative nominated event. The knock on Christie is he is moderate. He was out there saying, no, I'm not. Look at my views on abortion. I'm tough on spending.

He got some points just for going, the question is he seems all in, even though we thought he might wait until the federal investigation of bridge-gate was over.

KUCINICH: Right. And we are talking about this a little bit before the segment is that he's either good at bluffing or he doesn't think anything will come out. He hired one of Mitt Romney's top people in Iowa. I think that was announced yesterday or the day before. So he is making moves. He seems really serious.

MARTIN: Yes. He has a campaign apparatus. He's putting together. He's traveling the country. He's doing all the things that you do to run so -- I have very little doubt that Christie is going. But you do wonder what his ceiling is in Iowa, and how much of his being there is about expectations versus actually winning the place.

KING: Right. And Scott Walker with the Wisconsin governor seemed to get high marks out of the weekend event. Any other particular you think, won or lost at this event even though it's early?

KUCINICH: I mean, the Sarah Palin's speech was probably one of the more interesting speeches. If possible, she's gone a little more to the right and a little bit more of the, I say, crazy.

MARTIN: I think Walker comes out as somebody that is going to lone wolf for a lot of folks in Iowa. One of the great dynamics is going to be how much in that state does having experience help you? The last two caucus runners do those two folks own their votes from last time or is that up for grabs now?

KING: Jeb Bush skipped that event. You can look at it right now. Another guy who skipped that event is Mitt Romney. It was mentioned in the Peter Hamby piece, but look at this tweet from our old friend, Larry King. Larry King in Salt Lake City over the weekend ran into a guy named Mitt Romney and his wife, Ann.

Mitt Romney, of course, had just had a meeting with Jeb Bush out of Salt Lake City and Larry king said that Mitt told him, Larry, tweeted a selfie, he would decide within the next two weeks about whether he's really going to run.

MARTIN: So Larry King has scoped all of us by seeing Mitt Romney in Salt Lake City. He was seeing Jeb Bush for that meeting. But I talked to one of the Romney folks a couple of weeks ago when Romney told that group of donors in New York, that he was thinking about this.

The line I was given was he will have to figure this out in the next 60 days. That's probably a bit long. Two weeks makes sense. He seen Jeb Bush run around the country and lock down a lot of donors.

KUCINICH: Yes. That is one of the things in the Hamby piece that was interesting. When he did make that announcement in New York, a lot of those donors are already committed to Jeb Bush. The window is closing as to who Romney can tap for money at this point.

KING: This is going to be a big Republican field. We'll see if the former nominee, Mitt Romney, is in it. We should know pretty soon, and Alisyn, as we get back to you in New York. "Saturday Night Live," if you watch the weekend update, it was almost all politics including this little look back at the State Of The Union.

(BEGIN VIDEO CLIP)

COLIN JOST, SNL WEEKEND UPDATE CO-HOST: After Republicans during the State Of The Union applauded when President Obama said he had no more campaigns to run, Obama responded saying, I know because I won both of them. Obama's comeback was so good that it literally burned John Boehner.

(END VIDEO CLIP)

CAMEROTA: That's a good one.

KING: The speaker gets, shall we say, barbed about his skin color, by the way.

CAMEROTA: I'm familiar with those punch lines. All right, John, thanks so much. Stay safe down there.

OK, the northeast is about to get walloped. We are tracking this monster storm for you. And the White House wants to get the go ahead to fight ISIS on a global scale. Will Congress give the president the green light for there? We will ask the former chair of the House Intelligence Committee.

(COMMERCIAL BREAK)

PEREIRA: Good to have you back with us here on NEW DAY. ISIS is now demanding a prisoner in Jordan be set free in exchange for the release of the remaining Japanese hostage after apparently beheading the other captive.

This as the White House wants Congress to give them new authorization to fight ISIS around the globe. The military for its part is hoping for a completely open-ended authorization.

Let discuss it all with Mike Rogers, CNN national security commentator, a former chair of the House Intelligence Committee, and a former Republican congressman from Michigan.

Congressman, I'm so glad to talk to you. I wish it were about other things. This is such a horrible proposition that we are dealing with this Japanese hostage whose life is on the line right now.

We know is now is saying in exchange for this man's life being spared, we want Jordan to release a terrorist from jail. I am curious what your thoughts are and what japan is to do in this situation.

MIKE ROGERS, CNN NATIONAL SECURITY COMMENTATOR: I think it's important, Michaela, to remember, that when ISIS asked for the original $200 million. That was more of a political statement than it was even a foray into negotiations for his release.

The $200 million was exactly what Japan had pledged in humanitarian aid in Iraq and Syria during this crisis. So just like we saw in the Foley case if you remember the American reporter, Foley, who was ultimately beheaded, they put a very large number on it.

I think it was $130 million which is outside the bounds of real negotiations and there was no contact in order to facilitate negotiations --

PEREIRA: So you don't think they are actually willing to negotiate?

ROGERS: No, I really don't. I think that's why they were so easy to switch from the $200 million. If it was serious, it would be 1, 2, 3, 4, 5 million dollar asked.

PEREIRA: So to this Jordan -- this woman that is in jail in Jordan to be released. This is a woman that is suspected of being a terrorist, was accused of it, and has gone to jail for it. She is on death row. They want her released in exchange for sparing the life of this remaining hostage, do you think that is a fair or honor, a trade that they are willing to honor?

ROGERS: No, I don't. She was caught with her suicide vest on in the facility. So it was a husband-wife team. He blew up his vest. They killed some 45 people in a wedding. Her vest just didn't go off. She was apprehended at the scene.

If you recall, Michaela, this was at the time that Zarkawi in Iraq. This was the guy who was sweeping through Western Iraq. He was beheading people and chopping people's hands off, pretty brutal al Qaeda affiliate. So there is more politics and messaging in this than there is real negotiation, unfortunately, for the hostages.

PEREIRA: And you have long said that we won't negotiate with terrorists, but again this horrible proposition that I keep talking about is the fact that there is already one Japanese family mourning a loss, a horrific death of their loved one. We have another family hanging in the balance waiting for the fate of their loved one -- that is such a hard and difficult choice to have to make.

ROGERS: It really is very difficult. There is nothing easy about this, but we have to remember their goal and aim here isn't about the facilitation of money for the transfer of these hostages. It's about spreading terror. It's about messaging. It's about propaganda.

They cared very little for those individuals when they took them hostage. They don't care for them today even if they've changed their demands. You can't have nation states dictated by what is sheer brutality by these people and that is hardest part of this.

Unfortunately, they're very good at their propaganda. Their social media is very, very good. They're very aggressive with it. They understand it and they're using it very effectively.

PEREIRA: Congressman, let's turn quickly now to the military and to the global effort to eradicate ISIS, and let's talk about the U.S. We know the president has asked Congress to sign an authorization of use of military force. The White House has said in the past that they don't need new authorization, that the 2002 authorization covers them just fine. I'm curious where you stand on all this?

ROGERS: I think they need the authorization. I said last year, while I was still a member of the Congress and chairman of the House Intelligence Committee, we needed to do this authorization. We should have done it, put it in place before the end of last session. I think the president called for it in his State Of The Union.

This should be a very easy vote. This should get Republicans and Democrats together. Again, this isn't about sending in troops I don't want viewers at home so say, here we go. Some will say, here we go again. We will send a lot of troops in.

This is really about authorization to have our special capability soldiers do things that they can't do today or people at least don't believe they can do today without legal authorization. We ought to give them that, if we are going to ask these very special people to do really hard things.

Let's show them that America stands with them and this is a great and easy way to do it. This should again bring people together. I think the president will have to walk people through members of Congress what his plan is. That's a very important part of this.

PEREIRA: Former Congressman Mike Rogers joining us here on NEW DAY. Thanks so much for your expertise.

ROGERS: Thanks for having me.

PEREIRA: All right, Chris.

CUOMO: All right, Mich, here's the problem with blizzards. It's not just that they're dangerous, they're also expensive. Airlines are going to take a beating. We know that. They have already cancelled about 2,000 flights. That's just the beginning, but not everyone takes a financial snowball to the face. We have the financial impact of the blizzard ahead.

(COMMERCIAL BREAK)

CUOMO: The blizzard is going to be bad. It's going to be bad in a lot of ways. One of the ways that we are tracking would be economic activity namely freezing it out.

So let's bring in correspondent, Christine Romans, here for CNN Money now. I know that earnings will still be announced, but what it's going to do business?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Look, it really disrupts business in a big way. Big blizzards are big trouble for business. In 2010, that big blizzard cost retailers a stunning $1 billion. They lost that. America's research group tells us this blizzard could easily cost that much or more if it disrupts business for a few days.

Workers stuck at home means lost productivity. Airlines have already canceled thousands of flights, huge cost for them when they have to delay and cancel flights.

But the people who feel it the most, perhaps, hourly workers who can't make it in. That means lost wages they won't get back. There are, of course, others who will rake in big overtime. Public workers could make quite a bit in overtime pay doing snow clean up, running plows and salting roads.

Hardware stores and mega retailers like Home Depot and Lowe's, they see more business as people prep for harsh weather. Online retailers like Amazon, they could get a little bit of a boost, but most people will be too focused on shoveling snow to shop online.

Bottom line it has big disruptive effects for all kinds of different businesses even though you're paying a lot of overtime to some workers, it is, you know, public budgets pay that have to pay for that so it really hurts all the way around.

CAMEROTA: All right, Christine, thanks so much for tracking that for us.

So major cities as you know are bracing for this powerful blizzard, we will bring you the forecast and tell you which places will get the worst of it.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Don't underestimate this storm.

UNIDENTIFIED MALE: This could be the biggest snowstorm. Prepare for the worst.

UNIDENTIFIED MALE: This could be the big one.

UNIDENTIFIED MALE: What we're looking at wind, 40-50 miles an hour.

UNIDENTIFIED MALE: I'll believe it when I see it.

UNIDENTIFIED MALE: Bring it on.

UNIDENTIFIED FEMALE: I'm ready.

UNIDENTIFIED MALE: It won't be as bad as they say.

CUOMO: Breach of the White House grounds.

UNIDENTIFIED MALE: A device has been recovered by the Secret Service at the White House.

UNIDENTIFIED MALE: It's a drone we're told by authorities.

UNIDENTIFIED MALE: Early indication it does not serve as any sort of ongoing threat.

PEREIRA: A chilling new demand from ISIS this morning after apparently beheading one of two Japanese hostages.

UNIDENTIFIED MALE: ISIS continues to set the terms here.

UNIDENTIFIED FEMALE: Demands to release of a convicted female terrorist.

UNIDENTIFIED MALE: The death count, that's all it is, a death count.

(END VIDEOTAPE)