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Supreme Court Rules on Limits for Political 'Issue Ads'; Lake Tahoe Inferno; Kidnapped BBC Journalist

Aired June 25, 2007 - 10:59   ET

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


TONY HARRIS, CNN ANCHOR: You're with CNN. You're informed.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. 'm Heidi Collins.

Developments keep coming into the CNN NEWSROOM on Monday, June 25th.

Here's what's on the rundown.

Lake Tahoe inferno. Hundreds of homes in the line of fire this hour. More than 200 homes and other buildings already burned.

HARRIS: Important Supreme Court rulings. Last hour, decisions reflecting the new conservative membership. Government wins in cases involving separation of church and state and free speech.

COLLINS: Satisfaction guaranteed? Not in the case of the $54 million pants suit. A judge rules the plaintiff doesn't have a leg to stand on.

Can you say frivolous?

In the NEWSROOM.

HARRIS: And this just in. The Supreme Court has handed down decisions on a number of cases we're watching.

First, in a 5-4 ruling, the high court upheld the right of the White House to continue running an internal faith-based office. The offices pushes federal aid for religious charities. The court also tightened limited on student free speech.

In the so-called Bong Hits for Jesus case, in a 6-2 majority, the court ruled against a one-time high school student concluding his free speech rights were violated when he was suspended by his principal for displaying a banner "Bong Hits for Jesus" at a school-sponsored event.

And the justices struck down a key campaign finance reform law dealing with issue ads that eases restrictions on TV ads that are paid for by corporations and unions and that air close to election time.

Let's take a closer look at the ruling that could reverberate in future elections. Here to discuss the so-called ads, CNN senior political analyst Bill Schneider.

Bill, good to see you this morning.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning, Tony.

HARRIS: So here's the question. What does this mean, or does it mean anything goes when it comes to issue ads?

SCHNEIDER: Well, more or less, it does. It means that corporations, labor unions, issue advocacy groups, right or left, can run issue ads that mention candidates and parties by name 60 days before a general election, 30 before a primary.

That restriction had been in place in the campaign finance reform bill co-sponsored by John McCain, senator from Arizona, and Russ Feingold of Wisconsin. And previously in 2003, the court allowed that law to stand, but since then one justice has retired, Sandra Day O'Connor. She's been replaced by Samuel Alito. And the court today, by a narrow 5-4 majority, struck down that provision banning -- that has been banning issue ads within a certain period before an election.

HARRIS: And Bill, one more quick one here. Does this essentially sound the death nil for McCain-Feingold?

SCHNEIDER: Well, it's certainly a key provision in McCain- Feingold. It really eviscerates that law, because this was one of the central provisions of the law. And it essentially opens up the upcoming 2008 campaign to issue ads, both left and right, I should point out, because there were people who complained about the restriction like the American Civil Liberties Union, organized labor complained about it, as well as issue groups on the right.

They claim that businesses and advocacy groups should be able to spend that money, mentioned the names of candidates and parties before an election as a matter of free speech. And the court agreed.

HARRIS: Yes. CNN senior political analyst Bill Schneider for us this morning.

Bill, thank you.

SCHNEIDER: Sure.

COLLINS: An intense battle against a raging wildfire happening right now in Meyers, California. That's near Lake Tahoe.

Dozens of homes and other buildings burned to the ground. Hundreds more threatened. At least 1,000 people have fled the flames.

And CNN's Ted Rowlands is here now from Meyers.

Ted, we were getting word just last hour that this fire is possibly suspicious. Any more on that now?

TED ROWLANDS, CNN CORRESPONDENT: No, nothing more, only that they believe it was suspicious. And they have an investigator on scene trying to get to the exact cause of this fire. But that will be disheartening, the fact that it's suspicious, to the many people that have lost everything.

It's going to run into the millions of dollars in terms of property loss. If you just look around this area where the fire ripped through yesterday afternoon, fueled by 35-mile-per-hour winds, there is nothing left for these folks when they come back.

They will see, basically, just the chimneys, and that's about it. Everything, all their possessions, simply burned away.

A lot of these folks left with carloads full of things. Other people, though, didn't have time. Some people even fled on foot to get away from the flames, they were moving so quickly.

In all, about 1,000 people have been displaced because of this fire. Two hundred and twenty structures, including homes, have been destroyed by this fire, and about 2,000 acres have been consumed, as well.

They continue to battle this fire. This is the back half of it and this is the destruction that it has left in its wake. Firefighters are hoping to get the upper hand today, but, boy, yesterday they say they just could not save all of these homes.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The wind just pumped up a bunch of ash and stuff and sprinkled it through the neighborhoods and started a bunch of spot fires. And there just wasn't enough people to go around to put them out.

UNIDENTIFIED MALE: As it starts to build the heat and starts to smoke, we just want to keep it cooled down. That's about all we can do.

(END VIDEO CLIP)

ROWLANDS: And it really wasn't enough in terms of saving a lot of these homes. They were able to save portions and little pockets of structures, but for the most part, the fire won the battle yesterday.

Today, a new story though, and a much different story. Mother Nature is helping the firefighters greatly, and the hope is that these other 500-plus homes that are threatened can be saved.

They're assaulting this fire from the air and from the ground. About 750 firefighters on scene from around the region here near south Lake Tahoe, and right on the border of California and Nevada. And they are going at it hard. They're hoping to win the battle and ultimately the war -- Heidi.

COLLINS: Yes. I assume they've called in several hot shot teams from around the country on this one. I know there's sort of a mixture, Ted, of vacation homes there and permanent residences. What are homeowners being told that they should be doing?

ROWLANDS: Well, the folks getting out, basically, and staying out for now, at least. Probably by the end of today they'll have a better feel about where this fire is going. And they're hoping for some containment. They're hoping to hit the head of the fire this morning and stop its movement.

It did lay down overnight, and at that point homeowners may be able to come back. A lot of these homeowners are going to come back to pure heartbreak, though. A lot of people probably praying and crossing their fingers that they'll come back to have a home. But unfortunately, just looking around the street, a lot of people are going to be very, very disappointed.

COLLINS: Yes, the pictures have been truly incredible.

All right. CNN's Ted Rowlands coming to us from Meyers, California, today.

Ted, thank you.

HARRIS: And let's get over to Chad Myers now in the severe weather center.

(WEATHER REPORT)

HARRIS: How about this, a ruling last hour in the $54 million pants lawsuit. The court siding with the dry cleaner.

D.C. administrative law Judge Roy Pearson -- there he is -- claimed the cleaner lost an expensive and beloved pair of pants. He alleged fraud, saying the cleaner did not live up to promises of satisfaction guaranteed, and when that happens someone should pay. He also wanted money for pain and suffering.

A beloved pair of pants.

COLLINS: Yes. Lucky pants.

HARRIS: And also for legal bills. He gets nothing, and he'll like it, and will have to pay the defendants' court costs.

COLLINS: Suicide bombers strike across Iraq. This is the lobby of the busy Mansour hotel in Baghdad. At least one dozen people dead, almost two dozen others wounded. Among the dead, a tribal leader who helped the U.S. fight al Qaeda.

And south of Baghdad, a suicide car bomber targets a government compound. In all, at least four different targets bombed in suicide attacks today. The casualties, at least 46 killed, 132 injured.

HARRIS: And still ahead, Kentucky crash. A charter bus slams into a bridge, bringing a family reunion to a tragic end. JIM ACOSTA, CNN CORRESPONDENT: New court documents have been filed in the Jessie Davis case.

I'm Jim Acosta in Canton, Ohio. Those developments coming up in the NEWSROOM.

COLLINS: Also hard rains, high winds and heartbreak. Deadly storms on the Indian subcontinent.

HARRIS: And the edge of danger. Have you seen these pictures? A man slips from firefighters there and falls two stories. Man.

We'll tell you how it all turned out.

You are in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And good morning, everyone. Welcome back.

I'm Tony Harris, and you are in the CNN NEWSROOM.

Devastated by fire. Mandatory evacuations ordered in a northern California community. Hundreds of buildings destroyed and more in jeopardy.

The complete story coming up for you in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And let's get you to T.J. Holmes in the CNN newsroom. And T.J. is following a story of breaking news in Salt Lake City.

T.J., what are you working on?

T.J. HOLMES, CNN ANCHOR: Yes, Tony. A sad situation developing out there, where a corrections officer has been shot and killed by a prison inmate.

This is in Salt Lake City. This happened at the University of Utah, at the medical facility there.

The prisoner had been taken there to get medical treatment. Don't know what the condition was for him to be treated, but they say this is pretty routine for officers to transfer prison inmates from the prison to the University of Utah Medical Center there for treatment.

So, a routine something. And according to authorities there, there was some kind of altercation between this inmate and the officer. The inmate was able to get a hold of the officer's weapon and shot that corrections officer, and that corrections officer has been killed.

Now, the inmate ended up fleeing the scene, fleeing the hospital, and drove to a nearby restaurant, drove to an Arby's. Don't know why, where he was headed, what he was trying to do. But he was then apprehended and taken back into custody by police.

So, here we have one corrections officer killed after a prison inmate who was being taken to a hospital for medical treatment, was able to get a hold of a gun and shoot that officer. Many details, much to be worked out here. But again, this is something pretty routine, according to authorities out there, for the transfer to happen.

It sounds like it might have been a one-on-one situation, one officer with one prison inmate. That's the information we have so far. Don't know if that was the case, but possibly the case here.

HARRIS: Sure. Sure.

HOLMES: So, a sad story there, but the inmate is back in custody now. But again, one corrections officer dead -- Tony.

HOLMES: OK, T.J. Thanks.

HOLMES: All right.

COLLINS: New details coming during the last hour in the investigation of a pregnant mother's murder. Ohio police officer Bobby Cutts due in court this afternoon, accused of killing his girlfriend Jessie Davis and her unborn baby. Now a second person is under arrest.

We want to go live now to our Jim Acosta in Canton, Ohio.

Jim, tell us a little bit more about that arrest.

ACOSTA: Well, Heidi, both Cutts and his associate, 29-year-old Myisha Ferrell, are both scheduled to appear in court for a court appearance, is what they're calling it, not an arraignment, this afternoon at 3:00. And in advance of that court appearance authorities have filed new charging documents in this case.

And according to those charging documents, authorities now believe Bobby Cutts, Jr., the Canton police officer who is also the father of Jessie Davis' 2-year-old son, Blake, also believe dot be the father of her unborn child, according to those charging documents, authorities now believe Cutts killed Jessie Davis at her home.

Now, why is that important? It's important because last week authorities were peppered with questions as to whether or not Bobby Cutts abducted Jessie Marie Davis from her home or whether there was even an abduction at all. And according to these charging documents, that would not be the case, according to authorities, because these documents say that she was killed at her home.

As for Bobby Cutts' associate, Myisha Ferrell, she is charged with obstruction of justice. And according to her charging documents, she is being accused of making false statements to investigators.

Here is what police have to say about her case.

(BEGIN VIDEO CLIP)

CHIEF DEP. RICK PEREZ, STARK COUNTY SHERIFF'S DEPT.: Myisha Lynne Ferrell will appear in the Canton Municipal Court on Monday, June 25th, 2007, where she will officially be arraigned on one count of obstructing justice, a felony three. Myisha Lynne Ferrell is charged with obstructing deputies and agents in the investigation into the disappearance of Jessie Davis.

Investigators will continue to pursue leads developed through this investigation to identify any other individuals who are found to have any involvement in the disappearance of Jessie Davis.

(END VIDEO CLIP)

ACOSTA: And what is important about Myisha Ferrell's charging documents is that it does not say in here that she had anything to do in terms of moving the body of Jessie Davis, anything involved in the murder of Jessie Davis. These charging documents only say that she has been giving false information to authorities -- Heidi.

COLLINS: Jim, when you mentioned that about the possibility of her being killed in her home, it just makes me think about the possibility that she could have been killed then in front of her 2- year-old son, who we know was found wandering around alone in that home.

ACOSTA: That's right. Now, it's not clear exactly what that little boy saw. You know, all he has said so far that we know of from talking to his grandmother, Patty Porter, is that, "Mommy's crying. Mommy broke the table. Mommy's in the rug."

Never have we heard anything in terms of, "I saw daddy killing mommy," or anything along those lines. Now, authorities haven't told us everything that Blake has said in this case. So it's possible that he has said other things and those other things just haven't been disclosed to the media.

COLLINS: Yes. I'm sure much more to come out.

Also, I just wonder about the autopsy report. Any idea when we might be able to expect that?

ACOSTA: Not yet. And the big question remaining there is exactly how Jessie Davis was killed, what the cause of death was. That is the big detail that we're waiting from that autopsy.

COLLINS: All right. Jim Acosta reporting live for us on this tough story. Canton, Ohio, today.

Thank you, Jim.

HARRIS: New tape this morning of a kidnapped journalist captured by militants in the Middle East now making a new appeal.

CNN's Ben Wedemen has the story.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT (voice over): A chilling message from kidnapped BBC journalist Alan Johnston.

ALAN JOHNSTON, KIDNAPPED BBC JOURNALIST: As you can see, I have been dressed in what is an explosive belt which the kidnappers say will be detonated if there's any attempts to storm this area.

WEDEMAN: This is the second video released by Johnston's captors, the shadowy Jaish al-Islam, or army of Islam, which kidnapped the Gaza-based reporter on March 12th.

Since Hamas' takeover of Gaza earlier this month, the group's leaders have stressed their desire to win Johnston's freedom and have issued thinly-veiled threats that if talks fail, they may pursue other tactics.

JOHNSTON: Captors tell me that very promising negotiations were ruined when the Hamas movement and the British government decided to press for a military solution to this kidnapping, and the situation is now very serious.

WEDEMAN: Hamas' patience does seem to be running out. "The issue of the journalist must end, must end," declared Ismail Haniyeh, the dismissed Hamas prime minister who still runs Gaza. "We will never accept the continued kidnapping of the British journalist."

Following the broadcast of the latest video, the BBC issued the following statement. "It is very distressing for Alan's family and colleagues to see him being threatened in this way. We ask those holding Alan to avoid him being harmed by releasing him immediately."

After months of anarchy and factional fighting, calm is returning to Gaza. Hamas' executive force, the group's de facto militia, is policing Gaza's crowded and busy streets. But Johnston's continued captivity means they're grip on the strip is incomplete.

(on camera): Sources in Gaza tell CNN the kidnappers want guarantees they won't be punished or worse by Hamas if they free Johnston. Hamas leaders claim they've made those guarantees, but still, the Army of Islam won't free him.

Ben Wedemen, CNN, Jerusalem.

(END VIDEOTAPE)

COLLINS: Get ready to celebrate. Gas prices drop. Find out what you can expect to pay for a gallon of regular after the break.

(COMMERCIAL BREAK)

COLLINS: Quickly want to give you some more information that we're just getting in here to CNN now, the situation in Salt Lake City, Utah. A terrible situation, in fact.

T.J. Holmes is in the newsroom following this story for us. T.J., tell us the latest about this prison inmate now.

HOLMES: Well, we've got a few more details here. And got some video to show you out of Utah, as well.

But the story here is that a corrections officer has been shot and killed by a prison inmate that he was escorting to a medical facility for a medical appointment at the University of Utah. This is the video we're just getting in here of where the suspect was apprehended at an Arby's restaurant.

This was after. Again, he was taken to the University of Utah Medical Center for an appointment, shot the officer, killed the officer, fled on foot, then carjacked a car and drove around, was trying to get away.

Police ended up putting spikes down on the ground to stop him. He ended up being stopped at an Arby's restaurant, where he went in, according to police, and shot at least one person in that Arby's person.

This is video we're seeing, and that is the suspect we believe right there. Don't have his name yet, but that is the suspect, the one who is now a prison inmate. Not sure what he was in prison for, but now it appears that some other charges are going to be added on, including, no doubt, homicide in the killing of this corrections officer.

But the story here is this happens a lot, according to a correction officers out there. They escort inmates from the prison to this hospital, never had an incident like that before that they can remember, according to the officials out there. But a sad situation this morning that transpired over the past couple of hours, that a corrections officer had his gun taken away by the inmate he was escorting to a medical appointment.

That inmate then shot that officer, shot and killed that officer. A pursuit ensued, and it ramped up at an Arby's restaurant, where at least another person was shot -- another person was injured there. So more details there, but certainly a sad story and a tragic time out there for the law enforcement community.

Again, one corrections officer dead this morning -- Heidi.

COLLINS: Awful situation.

All right. T.J., thank you.

HARRIS: To your "Daily Dose" of health news this morning.

It looks like Americans are doing a better job of managing diabetes. A new study finds more than half of diabetics reached recommended targets for controlling blood sugar last year. In 2001, just over a third of people had their diabetes well controlled.

COLLINS: And if you're heading to the hospital, watch out. A new study indicates a drug-resistant staph germ may be infecting as many as five percent of hospital and nursing home patients. That's about 10 times the rate some health officials have previously estimated.

The germ can't be wiped out with certain common antibiotics. It is spread by touch and usually thrives in health care settings where people have open wounds.

To get your "Daily Dose" of health news online, log on to our Web site. You'll find the latest medical news, a health library and information on diet and fitness.

That address, CNN.com/health.

HARRIS: Chased by flames, hundreds of people in California on the run from a major wildfire. We will check the front lines.

HALA GORANI, CNN INTERNATIONAL CORRESPONDENT: I'm Hala Gorani in Baghdad.

Coming up, a suicide attack on what was thought to be one of the most secure buildings in Baghdad.

I'll have that for you after this.

(COMMERCIAL BREAK)

TONY HARRIS, CNN ANCHOR, NEWSROOM: And the bottom of the hour. Good morning, again, everyone. You're in the CNN NEWSROOM. I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR, NEWSROOM: And I'm Heidi Collins. Among our top stories this hour, a devastating wildfire in California, live pictures now. You still see the smoldering flames. At least 220 homes, other structures destroyed near Lake Tahoe. More now from reporter Dave Marquis of affiliate KXTV.

(BEGIN VIDEOTAPE)

DAVE MARQUIS, KXTV CORRESPONDENT: Even before firefighters arrived, neighbors trying to fight the flames themselves.

AARON HERNE, RESIDENT: The wind just pumped up a bunch of ash and stuff and sprinkled it through the neighborhoods and started a bunch of spot fires and they just wasn't enough people to go around to put them out.

UNIDENTIFIED MALE: Knew we had to come back to make sure the dog was going to be OK.

MARQUIS: Those who could get back in taking what is most precious.

UNIDENTIFIED MALE: We got the dog.

MARQUIS: (INAUDIBLE) Others realizing there is only so much you can do.

NATHAN FRIED, RESIDENT: Back up all our computer files, we got our insurance paperwork, our credit cards.

MARQUIS: Firefighters triage saving the homes they can, forced to let others burn.

UNIDENTIFIED FIRE FIGHTER: It just starts to build, the heat and starts to smoke, we just want to keep it cooled down. That's all about we can do.

MARQUIS: For fire fighters, the job even more complicated because of falling lines, some of them power lines like this making it difficult to get trucks and personnel through and leaving some of these homes an inferno. Helicopters maneuver into position above hot spots trying to blunt the leading edge of flame, as down below winds shift and firefighters could be suddenly blinded by smoke. Fire chewing away at even green forest at nearly 6,500 feet.

UNIDENTIFIED FEMALE: There's some lovely homes in there, but most of all, it's a beautiful area that is going to be charred now, it looks like.

MARQUIS: Four hours after the fire starts, flames continue hopscotching through pricy vacation cabins and permanent homes, destroying some, leaving others untouched.

(END VIDEOTAPE)

COLLINS: The local sheriff's office says hundreds of homes are still in the line of fire. You see all of that smoke just settling between the mountains there's. Fire fighters also trying to protect a high school at this time.

HARRIS: We are also watching developments this hour out of Iraq where it has been a day of extraordinary violence, dozens of people dead and wounded in suicide bombings across the country, one attack inside a Baghdad hotel that was hosting tribal leaders striving for national unity. CNN's Hala Gorani is in the Iraqi capital. Hala, good to see you. Who was in that hotel and how could something like this happen?

HALA GORANI, CNN CORRESPONDENT: Well it is the Monsour hotel in downtown Baghdad. It's really, literally a few hundred yards from the green zone. What you're seeing here is the aftermath of that devastating suicide bomb attack in the al Monsour. This building houses western organizations and the Chinese embassy, as well. But it seems as though it was a conference of tribal leaders that was targeted. Seven tribal sheiks have been confirmed dead by CNN. Two of their body guards, also an anchor for state-run (INAUDIBLE) television also among those killed.

Now, these tribal sheiks - and this is why this is significant -- many of those attending the conference have switched sides. Instead of combating alongside al Qaeda in provinces like Anbar, west of Baghdad, they are now accepting American help in order to combat al Qaeda, so many fingers being pointed now at al Qaeda as potentially being behind this attack. Again, the question is, how could this happen? Well, the suicide bomber seems to have been able to penetrate a few layers of security, at least and detonate his suicide vest, his bomb vest. The explosive vest he was wearing around him and kill all these people, at least 12, as of this count, Tony.

HARRIS: And Hala, there was other violence sadly in other parts of Iraq to report today.

GORANI: Yes. This was a very deadly day. The worst happened in Beji (ph). This with a truck bomb attack against a police headquarter building, but also in Hila (ph) and you're seeing pictures of the Hila attack, the aftermath of that against the governor's office in that city. Eight people were killed. Throughout the country in Mosul and in Baghdad, individuals were killed either in either car bomb attacks, suicide attacks or mortar attacks, as well. So it was a very bloody day and also one American soldier was killed in southeastern Baghdad, Tony.

HARRIS: CNN's Hala Gorani for us in the Iraqi capital of Baghdad, Hala, thank you.

COLLINS: Weekend storms ravaged parts of Pakistan and India, 200 people dead in Karachi alone, 200,000 homeless in India. CNN's Hugh Rimington has more.

(BEGIN VIDEOTAPE)

HUGH RIMINGTON, CNN CORRESPONDENT: It was wind, as much as rain, that brought such chaos to southern Pakistan. Many of those killed were victims of falling trees and flying building material or were electrocuted as power lines were brought down onto rain swollen streets. Many others died as slum housing collapsed, especially in Gadah (ph), an impoverished shantytown on Karachi's eastern outskirts. At one morgue alone in Karachi, 150 bodies were brought in. Frantic relatives crowded in in search of loved ones.

Meanwhile, the near total breakdown in power supplies brought angry protests to the streets. The fury was taken out on any available target, including people simply driving by. Across the subcontinent from Pakistani border lands close to Iran, to Bangladesh, thousands of kilometers to the east and in many parts of India, heavy rains have taken a toll. Some 200,000 people have been left homeless in the Indian state of Andreperdesh (ph) when more than 20,000 homes reportedly collapsed in cyclone conditions. Millions have been affected in some way and the draining systems in India's financial capital Bomba (ph) failing to cope with the inundation. Karachi's nightmare should ease over the coming days as the most violent storm cells head further west. More rain is expected in coming days, however, but Karachi authorities say they are now bringing the chaos under control. Hugh Rimington, CNN, Hong Kong.

(END VIDEOTAPE)

HARRIS: And back in the United States, Ohio police officer Bobby Cutts heads to court in just a few hours. He is accused of killing pregnant mom, Jessie Davis and her unborn baby. Now a friend of his is under arrest for obstruction of justice. Police in Canton, Ohio, won't say how Myisha Ferrell is involved. A neighbor says FBI agents searched Ferrell's apartment over the weekend and carried out multiple bags of items.

COLLINS: Now, to Egypt where a major summit on the Middle East gets under way today. But an early warning, don't expect the big break through in the peace process. Israeli Prime Minister Ehud Olmert calling today's summit merely a launching point for peace talks. Palestinian President Mahmous Abbas and Jordan's King Abdullah II also on the guest list. The summit is hosted by Egypt.

HARRIS: Still in the Middle East, possible proof of life. A new audio message believed to be from kidnapped Israeli soldier Gael Shahit (ph). The tape released on the one-year anniversary of his capture by Hamas. In the tape, Shahit says he is disappointed by the quote lack of interest by the Israeli government. He says his health is deteriorating. The tape was posted on a Hamas website. Hamas says it is willing to release Shahit in exchange for the return of Palestinian prisoners.

COLLINS: Still ahead, no more safe haven. Iran now sending thousands of refugees back across the border, but they're not exactly give getting a warm welcome back in Afghanistan.

SUSAN LISOVICZ, CNN CORRESPONDENT: I'm Susan Lisovicz at the New York Stock Exchange where oil prices are down but milk prices are up sharply. The 411 on the inflation behind this kind of fuel, next. You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

HARRIS: In southern Kentucky, a horrific accident scene, at least one person dead and the Associated Press now reporting 66 injured in that crash east of Bowling Green. It's on interstate 65. The bus slammed into the abutment of a concrete overpass, but it is not clear why. The charter company that owns the bus says it was rented by a family. They were returning to Alabama from a reunion.

COLLINS: Out west driven from their homes by a wall of flames. In Myers (ph), California, near Lake Tahoe, more than 1,000 people are on the run right now as a huge wild fire spreads, the flames destroying more than 220 homes and other structures. Another 500 are threatened and right now authorities say the origin looks suspicious. The battle is an intense one, more than 600 firefighters on the front lines, for the community, an unprecedented disaster.

(BEGIN VIDEOTAPE)

LT. KEVIN HOUSE, EL DORADO CO SHERIFFS DEPT: It's huge. As we reported last night, this is, this is far and above the biggest disaster that has happened to this community. I don't know, probably in forever.

(END VIDEO CLIP)

COLLINS: The blaze has scorched more than 2500 acres.

HARRIS: "Your World Today" coming up at the top of the hour. Rosemary Church, there she is.

ROSEMARY CHURCH, CNN CORRESPONDENT: Here I am. Tony and Heidi, great to see you both. We've got so much going on today across the board. It was difficult it get down to three, but here we are first going to Iraq for a live report from our Hala Gorani on that suicide bombing in the hotel lobby of that prominent hotel in Baghdad, targeting, it appears, tribal leaders there to promote peace. Twelve people are dead. We will figure out how that bomber was able to do that. Also our Jim Clancy is live in Moscow for our CNN special coverage of eye on Russia. He'll be taking a look at what is happening in that country today and gauge its economic success.

Also, a rare and chilling glimpse into the mind and motives of an unrepentant terrorist. We have an exclusive interview with (INAUDIBLE). Now before his arrest he was Indonesia's most-wanted man. You'll be shocked by what you see and what you hear in that exclusive interview. SO join us at the top of the hour for "Your World Today" here on CNN. Heidi and Tony, I'm sure you'll join us.

HARRIS: Absolutely.

COLLINS: Rosemary, thank you.

HARRIS: Well, how about a little good news? Gas prices are down, dropping below $3 a gallon for the first time since April. The Lundberg survey puts the national average at $2.99, down 11 cents in the last two weeks. The cheapest gas Jackson, Mississippi, at $2.75 a gallon, most expensive Chicago at $3.99, make that $3.39, wow $3.99. That would be our lead story. AAA's daily fuel check puts the national average at a fraction below $2.98 this morning. It was 13 cents lower a year ago.

COLLINS: Got milk? If you do, you may not have much left in your wallet as prices continue to climb. Susan Lisovicz is at the New York Stock Exchange with details. Hi there Susan, not just talking about gas prices, now milk prices.

LISOVICZ: This is a different kind of fuel, and for a lot of us, it is essential, Heidi. The high price of milk you see at the store today may be just beginning. July could bring even higher prices. The Department of Agriculture has raised the minimum price that farmers will get for their milk in July. The "Wall Street Journal" says the price is up 17 percent from June and 84 percent from last year. Part of the reason, a rise in corn prices, we've been talking about this a lot. Corn is used for cattle feed and to make ethanol, which is an alternative fuel that is becoming increasingly popular. June is also national dairy month, a time when retailers tend to run milk specials so the July price shock could be even greater because it's national dairy month. Heidi. You didn't know that, I know. I just had to emphasize that.

COLLINS: (INAUDIBLE) I've always felt very lucky that it was also national dairy month. LISOVICZ: That is why you have those incredibly strong bones.

COLLINS: Yes. That's it. Good one. Well, obviously, a lot of people drink milk. Many families, kids, if you have them. Any possibility you think that people will be switching to something else?

LISOVICZ: Not yet. Just because of exactly what you said. It is such an essential part in many people's pantries or refrigerators, I should say. Even small shifts in habits could have a big effect on companies like Kraft or cereal companies, Hershey's also and Starbucks already saying their bottom lines could be affected by the higher price of milk.

Even if you do get away from milk in liquid form, don't forget cheese. "The Wall Street Journal" says Pizza Hut raised prices on a medium cheese pizza. It's hard to find a consumer who isn't touched by at least one of those companies, when you think about.

So, turning to the market. Let's talk about something that is also higher. Stocks are rallying with the blue chips climbing into triple digit territory at times today, all this despite a sobering report on the U.S. housing market. Existing home sales slipped last month to their lowest level in nearly four years while inventories climbed. The median home price meanwhile was down more than two percent from a year earlier, but up slightly from April. However, the numbers were not as bad as some have feared. You figure it out. Seems like the housing market certainly is still not out of the woods, but not as bad as some people figured out anyway, didn't shake the market too much. Dow is close to triple-digit gains, at least the Dow is, up 91 points, 92 points, 2/3 of one percent. GM really on a tear up 3 percent, an upgrade from Goldman Sachs. The Nasdaq meanwhile was up half of 1 percent so a pretty nice bounce back from last week's triple-digit losses. Tony and Heidi, back to you.

COLLINS: OK, Susan, nice to see you again.

LISOVICZ: Likewise.

COLLINS: Thank you.

HARRIS: A refugee crisis building in Iran, the growing financial burden now leading the nation to turn its back on thousands of desperate people. CNN's Aneesh Raman has more.

(BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT (voice-over): Welcome home, it's back to Afghanistan for 100,000 illegal refugees in Iran sent packing over the past two months. Awaiting them an Afghan government unprepared to take them all in, some were left stranded, others alleged abuse along the way by Iranian police. So far Iran says it's gotten no official complaint.

BILL FRELICK, HUMAN RIGHTS WATCH: Iran for decades has been quite generous to Afghan refugees. In that respect this really, the level of the brutality here, the lack of consultation really marks a difference.

RAMAN: Iran has offered a primary support system to Afghan refugees for years. Tehran has built seven camps like this, providing every basic need, every day, albeit for a fraction of the estimated 1 million legal refugees living here.

JEAN-CLAUDE FORGET, DEPT. REP, UNHCR, IRAN: Until recently, the Iranian authorities have been coping with the needs of the refugees by themselves without support from the outside.

RAMAN: By choice?

FORGET: To a large extent, I would be inclined to say so. It was a matter of pride.

RAMAN: But as Afghanistan grows more violent, Afghan refugees are more afraid to go home. In 2005, according to the UN, just under 300,000 did. A year later, that number was down to 5,000. Add to that an influx of new refugees, many of them crossing illegally to Iran to spend their days working whatever job they can find. Iran says it's now spending $26 billion a year on 2.5 million legal and illegal Afghan refugees and according to the director general for refugee affairs, something has to give.

AHMAD HUSSEINI, DIRECTOR GENERAL, REFUGEE AFFAIRS: We cannot be at the same time a country that houses refugees for decades, repatriates refuges and also acts as a transit point for refugees to go else where, he says. We can no longer do all three.

RAMAN: In part because the national community according to Iran, is contributing only one cent for every dollar the Islamic republic spends, which means more and more illegal Afghan refugees will endure homecomings like this. Aneesh Raman, CNN, Tehran.

(END VIDEOTAPE)

COLLINS: The edge of danger. A man slips from firefighters and falls two stories. We'll show you the dramatic plunge and tell you what happened in just a moment.

(COMMERCIAL BREAK)

HARRIS: Let's get you back to TJ Holmes in the NEWSROOM. There it is. TJ, I know your police in Salt Lake City are processing I guess it's two crime scenes now, one at the University of Utah and the other at a nearby Arby's restaurant.

TJ HOLMES, CNN CORRESPONDENT: At the Arby's where they actually apprehended their suspect. It was a prison inmate who authorities say shot and killed a correction's officer and escorted him to his medical appointment at the University of Utah and then fled, went on a high- speed chase, finally had to be pulled over. He had finally stopped at an Arby's restaurant, went inside where police say he shot at least one person in that Arby's restaurant. We are expecting a press conference from authorities in just a bit. Not exactly sure, nail down the time just yet, but are expecting a news conference to get more details on this, but the suspect, we have a name now. Curtis Alger who is the suspect. You can see him being put in the vehicle right there. Yes, he is tatted up on the face, as you can see there. We don't have a close-up picture we can show you of that, but he has skinhead, a swastika and all kind of other things tattooed on his face. We are trying to work and get the background on this gentleman, so we're going to be watching this and keep an eye on that press conference and a lot more details to come on a sad day out there for the folks in the law enforcement community in Utah.

HARRIS: OK, TJ, thanks.

COLLINS: Remembering Jessie. An Ohio community comes together in grief after a pregnant mom is murdered. Today the case shifts to the courtroom.

(COMMERCIAL BREAK)

COLLINS: I want to get back to the Supreme Court decisions we've been telling you about this morning. Here is the deal, in a 5-4 ruling, the high court upheld the right of the White House to continue running an internal faith-based office. The office helps religious charities get Federal funds. The justices ruled taxpayers did not have the right to challenge that initiative. The court also tightened limits on student speech in a 6-3 decision. The justices ruled against a one-time high school student concluding his free speech rights were not violated when he was suspended for displaying a banner that said bong hits 4 Jesus. It was at a school-sponsored event. The justices struck down a key provision of campaign finance reform law. It deals with so-called issue ads. It eases restrictions on TV ads that are paid for by corporations and unions as well as those that air close to election time.

HARRIS: To China now and some dramatic video of a fire rescue in Shanghai. Take a look firefighters raced to a burning apartment building, a man waiting on a ledge to avoid the massive flames. He is fitted with a safety harness around his waist, but as he tries to get to the firefighter's ladder, you will see it here in just a moment, he falls from the fourth floor to the second floor hitting a metal pole along the way. Luckily he was saved by the safety rope. The apartment was destroyed.

COLLINS: CNN NEWSROOM continues just one hour from now.

HARRIS: "Your World Today" is next with news happening across the globe and here at home. I'm Tony Harris.

COLLINS: And I'm Heidi Collins. Have a good day everybody.

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