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U.S. Helps Turks to Locate Rebels; Police Officer Shot in Philadelphia; Fed Expected to Lower Interest Rates; Boy Admits to Starting Wildfire; Incidents of Nooses on Rise after Jena 6 Case; President Bush to Nominate New Ag Secretary

Aired October 31, 2007 - 11:00   ET

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

TONY HARRIS, CO-HOST: And good morning again, everyone. You're with CNN. You're informed. I'm Tony Harris.
HEIDI COLLINS, CO-HOST: Hi, everybody. I'm Heidi Collins and Happy Halloween to you. Developments do keep coming into the CNN NEWSROOM. On this Wednesday, October 31, here's what's on the rundown.

Junior fire starter; dangerous lesson learned in Southern California. Police say a boy playing with matches ignited a huge wildfire.

HARRIS: She's traveled overseas to improve America's image. Now she is heading home. Presidential aide Karen Hughes resigning.

COLLINS: And a symbol of hatred hung in a police station. Ahead, a preview from our special investigations unit, "The Noose", in the NEWSROOM.

HARRIS: And we begin with some breaking news just in to CNN. Let's get to our Pentagon correspondent Barbara Starr. And Barbara's following the story of new developments regarding Turkey and along that northern border with Iraq, Iraq's northern border.

Barbara, good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Tony.

The Pentagon just a few moments ago confirming that the U.S. military and U.S. intelligence community very much getting involved in that dispute between Turkey and PKK rebels along that remote northern border where there have been a number of cross-border attacks.

Pentagon press secretary Geoff Morrell just told reporters off camera a few minutes ago that, indeed, confirming U.S. intelligence is being supplied to the Turks as they try and hunt down the PKK rebels. Morrell telling reporters, quote, "We are assisting by supplying them, the Turks, with intelligence, lots of intelligence."

He went on to say, quote, "There has been an increased level of energies sharing since this recent crisis."

What is Geoff Morrell talking about? Even though he would not confirm this point to reporters. What we do know from at least three military sources, the U.S. is now flying U2 spy planes over that border region, collecting as much as it can about the movements of those PKK rebels and passing it on to the Turks.

The bottom line is the U.S. is desperately hoping to stop a war on that border. In fact, Secretary of state Condoleezza Rice is on her way to the region. Turkish officials are expected in Washington, of course, to meet with President Bush in the days ahead.

They're sharing intelligence. They're giving them the best they have off U.S. spy planes now, all in hopes of keeping the Turks satisfied that they're everything they can about the movements of these rebels so the Turks do not feel they must cross the border and invade northern Iraq.

HARRIS: That's the question, Barbara. You have to ask, does this shared intelligence make it more or less likely that there could be a full-on Turkish incursion into Northern Iraq?

STARR: Senior Pentagon officials, Tony, who in the last few days have met with Turkish officials, are very concerned about it. Their assessment is this: that the Turkish population is very upset, is pressuring their government in Turkey to move ahead with a full incursion into Iraq, to go after the PKK rebels.

What U.S. officials are trying to say to the Turks is, "Look, the PKK is launching all of these attacks to try and provoke you into an invasion."

The U.S. wants to separate both sides. They want to give the Turks the intel to go after the PKK, but they certainly want the Turks to stop short of a full-scale invasion. They're hoping, by giving them this best intelligence that the U.S. spy community basically can gather, that it will be enough to keep the Turks at bay, at least for a while, Tony.

HARRIS: Seems to also be saying to the Turks, here they are. Here is exactly where they are.

STARR: Absolutely.

HARRIS: Pentagon correspondent Barbara Starr for us this morning. Barbara, thank you.

STARR: Sure.

COLLINS: Want to get you to some other breaking news now, as well. Fredricka Whitfield in the newsroom for us, working on a shooting, Fred, in Philadelphia?

FREDRICKA WHITFIELD, CNN ANCHOR: Right, Heidi. Police are working a shooting scene there in Philadelphia. You're looking at the live shot location right now.

This actually looks like the hospital. In fact, what you see on the gurney there is a police officer who was shot during this incident. It's unclear whether he was off duty or not. Now you're looking at the taped images of where that shooting took place. A Dunkin' Donuts at 66th and Broad Street in Philadelphia.

Police now investigating another shooting involving one of their own just yesterday. A police officer there in Philadelphia was shot in a separate incident, and now this.

Again, we're trying to work our sources there to find out whether this police officer was on duty or not. Nevertheless, a police officer shot there in Philadelphia, 66 and Broad Street, right there at that Dunkin' Donuts where you see it's an active crime scene right now.

When we get more information, Heidi, we'll bring it to you.

COLLINS: OK, very good. Fredricka Whitfield in the newsroom. Fred, thank you.

HARRIS: And breaking news this hour. President Bush's long-time adviser, Karen Hughes, is leaving her post. She plans to quit her job as undersecretary of state by the end of the year.

Hughes is one of President Bush's last remaining advisers from his close circle of Texas aides. She's been traveling the Arab world, trying to improve the U.S. image abroad.

Hughes now planning to return to Texas. She is quoted as saying improving the world's view of the United States is a long-term challenge that will outlast her.

COLLINS: Wind, waves, and worry. Tropical Storm Noel is centered over Cuba right now. In fact, look at this. Our I-Reporters tracking the storm through Haiti and the Dominican Republic for us.

Jose Adelis Contreras took this video with his cell phone. Emergency officials are saying there's massive flooding and a rising death toll in the Caribbean.

Here in the U.S., strong winds and rough surf are hitting South Florida beaches right about now.

HARRIS: And why don't we check in with Jacqui Jeras for a view of where this storm -- boy, the track is a bit encouraging. It doesn't look like it poses the threat that maybe it might to South Florida, Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Right. It doesn't look like South Florida will likely get a direct hit from the storm, but certainly feeling the impacts right now, and it's strengthening at this time.

We just got the 11 a.m. advisory in, and those winds are up as predicted, 50 miles per hour now. And there you can see that big blossom here, all that purple. Look at that big blow up here. And that's why the storm is strengthening right now. It's back over the open waters, over that energy source, that fuel that it needs to strengthen. And as long as it does that, it has the potential to get stronger as it heads towards the Bahamas.

We have a new and updated track, and the main thing I want you to notice here is really the track hasn't changed very much, but look at the intensity. They're bringing this thing up to 65 miles per hour now overnight tonight, and staying near that strength as it moves through the northwestern Bahamas and pulls on up to the north and the east. That's not good news.

Still holding it under hurricane strength, but those winds ever getting stronger, and the stronger the wind are and the bigger the wind field gets, the more of an impact we're going to be seeing on Florida.

Now, the hurricane hunters have been flying into the system. Left Puerto Rico early this morning. They're still in flight as we've been seeing. There you can see some of the observations. Shawn Moore (ph) is clearing some of the data for me, showing us 36 knots right there. And that's the equivalent to about 40 miles per hour.

I'll show you the maps back again, and I'll show you what's been going on across Florida. High pressure to the north here along with the low pressure from Noel, together helping to drive in those strong winds, and why we're having such a huge beach erosion event.

Guys, we're having not a lot of I-Reporters sending us any I- Reports on the beach erosion, so I put my husband to work, who had a flight to Melbourne this morning. We'll show you those pictures and I'll help explain what beach erosion is, coming up around the bottom of the hour.

HARRIS: "Yes, honey. OK, honey."

COLLINS: Is he going to take pictures from above while he's flying?

JERAS: Well, he was on the ground. He spent the night there last night.

COLLINS: OK.

JERAS: Going back up into the air now.

HARRIS: "OK, honey. What else do you want me to do?" Huh?

JERAS: Isn't it great?

COLLINS: I think it's fabulous. Special I-Reporter.

Jacqui, thank you.

A Federal Reserve decision today. We've been talking about it all morning. What it could mean for your mortgage or credit card rates tomorrow. Ali Velshi at the Chicago Board of Trade this morning for us. Just a few more hours away until we really know what's going to happen here, Ali. But what about this change of interest rates? What exactly will it mean for the people at home?

ALI VELSHI, CNN CORRESPONDENT: Well, three hours away from now Heidi, 2:15 Eastern Time, there are two questions. Is it going to happen?

Most people are expecting a quarter of a percentage point cut, 25 basis points, a reduction in the Fed funds rate, which is 4.75 percent right now. But what that means to you is it's -- it means a quarter percentage point reduction in the prime rate, which is at 7.75 percent. That will come down to 7.5 percent, if it happens.

Now, what does that mean? That means that your -- a number of loans that you have that are tied to a variable rate could come down, as well. That could be credit cards. That could be consumer loans.

And over here at the Chicago Board of Trade is where they trade bonds, and those -- those prices will go up, and the interest rate will come down. Typically, that's how it works. It's not in lockstep with the Fed, but that's typically how it works, which means many of these mortgages that people are suffering with and having trouble with might get a little bit of a break today.

So what happens is when interest rates come down, Heidi, it just makes it easier and cheaper for people to borrow money. It makes it easier for businesses to borrow money, and when they have more money, they can expand and hire more people.

It gives consumers a little bit more money to spend, and that is particularly important right now, Heidi, because we're in that final stretch of the year. We're in the holiday shopping season.

And it's certainly a time where a lot of people are wondering where this economy is going. So the Fed cutting rates could make people feel a little more encouraged about spending.

COLLINS: Yes, definitely. Ali, do me a favor and as we see all those people behind you and it's looking pretty busy there, tell us a little bit about the mood where you are.

VELSHI: Well, you know, this is where these things get traded. This is the place where, when you see the Fed rate being cut this afternoon, you're going to feel most of the energy right here, because these traders who trade, by the way, not just bonds but commodities, you know, everything that we buy, will somehow have to react to that.

And that's where you'll see a very physical and strong reaction around here. This is -- some of this will directly affect your mortgages and loans, and some of it will affect everything around here.

Right now, because there's some doubt as to what the Fed will do -- most people think it will cut by a quarter percentage point. But because there's some doubt about it, there'll be a lot of activity. And there's a lot of sort of guessing and trying to figure out what's going on.

This is actually a fairly calm time right here, but there are times through the course of the morning when economic reports have come out and things have happened where you just see this burst of excitement. I'll be right here at 2:15 Eastern, and you'll see that burst of excitement.

COLLINS: Yes. And it's a perfect place for you, Ali.

VELSHI: Yes.

COLLINS: Perfect place for you. But I do kind of like it when they, like, throw stuff and they jump up and down.

VELSHI: I'm going to have to watch out when I'm -- when we're here at 2:15 to just make sure that you don't hear anything that the families watching shouldn't hear.

COLLINS: Yes. We'll have to put it on that funky delay thing that we have.

VELSHI: That's right.

COLLINS: OK. Ali Velshi "Minding Your Business". Thanks, Ali.

VELSHI: OK.

HARRIS: Well, a child playing with matches, and thousands of acres burned. Fire investigators in Southern California say a boy has admitted starting one of the region's worst fires, the Buckweed fire.

It burned more than 38,000 acres. More than 60 buildings were destroyed. Among the losses at least 21 homes. Fifteen thousand people were chased from their homes. Five people were injured, two of them firefighters.

The boy's name and age have not been released. He is now in the custody of his parents.

Prosecutors in Los Angeles County will decide whether he should face charges.

L.A. County Sheriff's Deputy Luis Castro offering this update in the NEWSROOM just a short time ago.

(BEGIN VIDEO CLIP)

DEP. LUIS CASTRO, L.A. COUNTY SHERIFF'S DEPARTMENT: It's going to be a hard time right now for everybody. Everybody is still recovering. Has to be hard on the parents...

HARRIS: Sure.

CASTRO: ... to know that their child may have been the cause of this great fire. He may not have known the magnitude of the fire. And again, it's still -- it's still too early to really assess everything.

HARRIS: Got you.

And Deputy, what led you to the boy?

CASTRO: Again, the investigators, after conducting a thorough investigation right after the fires, as soon as they were able to get in, were led by different pieces to this individual.

(END VIDEO CLIP)

HARRIS: And Deputy Castro says investigators are still gathering information on this case.

COLLINS: Want to go ahead and take a closer look at the Southern California wildfires for just a moment.

At least 18 of 23 fires are now fully contained. The rest are at least 70 percent contained. In all, though, the fires burned more than a half million acres; 1,600 homes were leveled. The fires are blamed for at least 14 deaths.

HARRIS: An earthquake rattles homes and nerves in Northern California. No reports of injuries or serious damage this morning. The magnitude 5.6 quake was centered about nine miles northeast of San Jose. It gave people who live in the area quite a jolt this morning.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We really felt it. It was of the first one since '89, and, yes, we were a little bit upset because we didn't know exactly where the epicenter was so we were scared.

UNIDENTIFIED MALE: We were sitting, just having dinner over there, and we felt like it was like a train coming through, you know? And everyone stand up and run out of the place, but it wasn't that bad.

(END VIDEO CLIP)

HARRIS: It wasn't that bad, huh? All right. Take a look at these pictures here. As you can see, the quake toppled a couple of items from store shelves.

Officials also fielded calls about gas leaks and some broken water pipes, but again no reports of major damage or injuries.

The earthquake was the largest to hit the San Francisco Bay area in almost two decades. We hope to talk with a seismologist about how close to the big one we might be ahead in the NEWSROOM.

COLLINS: What a brave and lucky little girl. You won't believe what she went through before rescuers finally reached her. We've got her survival story right here in the CNN NEWSROOM. (COMMERCIAL BREAK)

HARRIS: And welcome back, everyone, to the CNN NEWSROOM. I'm Tony Harris.

A symbol of hatred: nooses on display in a dozen recent incidents. What is going on here? Our special investigations unit goes deeper. A look at the story with Kyra Phillips, coming up next in the NEWSROOM.

(COMMERCIAL BREAK)

ANNOUNCER: You're watching CNN NEWSROOM on CNN, the most trusted name in news.

COLLINS: She's only 3 years old, but she's already been through more than most of us. Kate Williams is the only survivor from a small plane that crashed in the mountains of British Columbia. Rescuers found her hanging upside down still strapped in her car seat.

The plane was piloted by her grandfather, was nose down and flipped over in an icy creek. Rescuers say they knew she was OK when they pulled her out and she cried for her teddy bear, which was still in the wreckage, which you see there. Look at that.

Little Kate and her bear spent the night in the hospital, her parents by their side.

HARRIS: A powerful symbol of hatred, a reflection of ignorance and intimidation. Since the Jena 6 case, a dozen noose incidents reported across the country.

Our special investigations unit is on the story. A warning: this report contains some disturbing images. Here's our Kyra Phillips.

(BEGIN VIDEOTAPE)

COREY PEGUES, PRESIDENT, NOBLE: There was a noose found in the men's locker room of the Hempstead Police Department.

KYRA PHILLIPS, CNN ANCHOR (voice-over): On September 28, Corey Pegues, the president of a black law enforcement group, became enraged after learning about a noose hanging in this small Hempstead, New York, police station. He immediately let the local press know.

PEGUES: Just look at this. What this represents when I hold this up, when I see this, I think of my ancestors hanging off trees. We're appalled that in 2007 someone has the audacity to put a noose in a police department where people are sworn to protect and serve.

PHILLIPS: Hempstead Deputy Police Chief Willie Dixon believes he was the target of someone's hate and ignorance.

DEP. CHIEF WILLIE DIXON, HEMPSTEAD, NEW YORK, POLICE: A noose in my mind represents one of the darkest periods in this country's history. And it wasn't enough to lynch an African-American. You would castrate him to add insult to injury, and after the lifeless body was hanging from a tree, he would then set that individual on fire.

(END VIDEOTAPE)

HARRIS: Sorry, Kyra.

We were -- we were...

PHILLIPS: Getting into a debate, actually, about this.

HARRIS: We're debating this.

PHILLIPS: We'll save this discussion for the live Q&A right now.

HARRIS: Yes. Because my first question to you is I've been down this road a couple of times. With all the incidents that you're talking about with nooses around the country, certainly since Jena, during that story and since, and then with the inward, the whole discussion in our newsroom and around the country about the "N" word and the use of the "N" word and the power that it still has.

And I'm wondering, universally, was there condemnation of these nooses around the country from your reporting? Or is there a group that says, "You know what? It only has the power that we give it in 2007"?

PHILLIPS: See, I think people have forgotten the power that the noose was given...

HARRIS: Yes.

PHILLIPS: ... decades and decades ago. That's what I discovered, that a lot of these students, a lot of people around the country know about the Holocaust, know about the swastika.

HARRIS: Yes, yes.

PHILLIPS: They can talk about that. They had those classes in school. But lynching wasn't taught. They don't know about the pictures that you just saw. They didn't know that that existed.

HARRIS: So...

PHILLIPS: They didn't see those pictures when they were going to elementary, junior high, high school. Now the question is should they? Should they?

HARRIS: Yes.

PHILLIPS: Because we're seeing this undercurrent of racism come forward. Jena 6 marked a lot of this stuff. And now you've got these ignorant people around the country, hanging nooses as a way to send an intimidating message. So we wanted to step back and go, "OK, let's stop giving attention to these boneheads, OK, you know, that are hanging these nooses."

HARRIS: Right, right.

PHILLIPS: I mean, plain and simple. And let's educate people on what happened with those nooses and the history behind the noose and talk to the people who have been affected for generations.

HARRIS: And that's the approach, that's the tact of the special tonight.

PHILLIPS: That's right. You will hear from relatives that had a family member that died from a lynching.

You will hear from a white man who has dedicated his life to collect these pictures and teach people about the history of lynching.

And I traveled around to different diversity clubs and classes, where students are talking about issues of race...

HARRIS: Really?

PHILLIPS: ... and learning more about lynching and the symbol.

Do you remember...

HARRIS: Well, I'll tell you what.

PHILLIPS: ... in your classes where you were taught about lynching?

HARRIS: Well, sure. Sure.

PHILLIPS: You do remember it?

HARRIS: But I'm (UNINTELLIGIBLE) at this point. Of course.

PHILLIPS: Well, but so am I. I even went to inner city schools.

HARRIS: No, you're not. No, you're not.

PHILLIPS: I am. And I don't remember learning about that.

HARRIS: Right. But I wonder, the diversity classes, you know, a lot of folks point to the diversity classes as being part of a fuel here. It's not forcing us. They're trying to force us to get along. You're trying to force us to understand one another?

PHILLIPS: You have to talk about it. You know we have to talk about it.

HARRIS: Yes.

PHILLIPS: We want our kids talking about it. We don't want our kids being sheltered.

HARRIS: Yes.

PHILLIPS: We want them talking about all these sort of things.

HARRIS: Sure. Tonight. All right. Let's talk about it. Let's get you watching this.

"The Noose: An American Nightmare". It is a CNN special investigations unit piece tonight. You don't want to miss it. Catch it tomorrow night. It's tomorrow night?

PHILLIPS: Tomorrow night. Tomorrow night.

HARRIS: Right, tomorrow night, 8 Eastern right here on CNN. Thanks, Kyra.

PHILLIPS: Thanks, Tony.

HARRIS: And to read more about recent news incidents across the country or watch online videos on racial issues, here's what you do. Check out a special report, "The Noose". And you can find it at CNN.com/noose.

COLLINS: What you eat and your risk of getting cancer. Find out the top five food rules for reducing that risk.

(COMMERCIAL BREAK)

COLLINS: Want to give you some quick information here regarding another appointment of President Bush's. This time yesterday we told you about the secretary of veterans affairs.

And today, that man is going to be the nominee for agriculture secretary. And his name, Edward Schafer. He's a former two-term Republican governor from North Dakota, and he is going to be replacing Mike Johanns, who actually resigned last month. He's going to be running for the Nebraska Senate seat that was vacated by Chuck Hagel.

So now we will hear the formal announcement from the president, coming up at 2 p.m. Eastern Time. Going to happen in the Roosevelt Room. Once again, the secretary of agriculture nominee will be that gentleman that you're looking at on your screen, Edward Schafer. We'll hear more about him a little bit later on today.

A matter of life and death. The Supreme Court stepping in to block the execution of a convicted killer in Mississippi. Now, new questions about lethal injection.

It's the third time the justices have granted reprieves to Death Row inmates since last month. That's when they agreed to decide a larger constitutional issue of lethal injection. That case centers around Kentucky's lethal injection procedures.

Opponents of the death penalty say inmates suffer excruciating pain, which amounts to cruel and unusual punishment. A ruling from the high court is expected next year.

HARRIS: You know, what you eat matters when it comes to fighting cancer. That conclusion from a landmark study on cancer and diet.

Medical correspondent Elizabeth Cohen here with some of the food rules that might reduce your risk.

Well, I'm all ears.

ELIZABETH COHEN, CNN CORRESPONDENT: You're all ears.

HARRIS: Yes, yes.

COHEN: You know, well, that's good to hear, because I think sometimes people don't get the link. They get it, that what you eat affects your heart.

HARRIS: Sure.

COHEN: You better keep your weight down for the sake of your heart. They don't always get it that there is a connection between what you eat and your weight and whether or not you're going to get cancer.

But for the second time a worldwide group of experts has said there is a strong food/cancer connection. They say, in fact, that we might be able to prevent 30 to 40 percent of all the cases of cancer out there if people eat right.

Well, what does it mean to eat right? We're going to tell you. We have five tips for how to eat right to fight cancer.

Eat a plant-based diet. It's very simple: if it comes up from the ground, it's good. If people have messed with it and processed it, not as good.

Maintain a healthy body weight. That's so important. Being overweight puts you at a higher risk for having cancer.

Drink less alcohol. Alcohol not good for cancer.

Don't eat much red meat. Keep it to about 10 percent of your diet.

And keep your fat intake down in general.

So there are some tips for how to do it.

HARRIS: I'm good with four of the five.

COHEN: I won't ask what the fifth one is. OK.

HARRIS: You can figure that one out. But here is the question. I'm wondering how strong the linkage is, the food/cancer link. When we think about how strong the link is between smoking and cancer. COHEN: Right, right. And I'll be honest. The link is not as strong. The link between smoking and cancer is about as strong as it gets.

HARRIS: Yes.

COHEN: The link between food and cancer is there, but it's not as strong. But even knowing that, here's what's so important. Eating right is such a great idea for your entire body.

HARRIS: Absolutely.

COHEN: It helps cut the risk of heart disease.

HARRIS: Makes sense.

COHEN: And the rules are all pretty much the same.

HARRIS: Yes. OK. All right.

Anything else we need to take care of?

COHEN: No, I think that's it. I think that's it.

HARRIS: Four out of five.

COHEN: Cancer, heart disease, four out of five.

HARRIS: The linkage. All right, great.

COHEN: OK.

HARRIS: Elizabeth, thank you.

And to get your daily dose of health news online, logon to our Web site. You will find the latest medical news, a health library and information on diet and fitness. The address: CNN.com/health.

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins and Tony Harris.

HARRIS: And welcome back, everyone, to the CNN NEWSROOM. I'm Tony Harris.

COLLINS: Good morning, everybody. I'm Heidi Collins.

We want to get you straight to our Elaine Quijano, who is standing by to talk a little more now about this announcement that the president will be making, Elaine, come about 2 this afternoon, on a nominee for agriculture secretary.

ELAINE QUIJANO, CNN CORRESPONDENT: That's right. You know, I just got off the phone with a senior administration official who says, really, they believe here at the White House that this person, the former North Dakota governor, Ed Schaefer, has the right experience for this job. And people at home might be saying, "Well, agriculture secretary, we don't hear a lot about that."

But certainly the issue that you were just talking about a moment ago with Elizabeth Cohen is very big on the priority list for this cabinet position. Nutrition, food safety we're talking about.

Other issues that this nominee, if confirmed, will have to tackle include the president's trade agenda, trying to open up markets for U.S. agricultural products, and, of course, the Farm Bill. All of those issues are ones that certainly will be first and foremost.

So we have not, again, heard a lot about agricultural -- agricultural secretaries in the past, but certainly it is an important position, a cabinet-level position. President Bush, again, set to announce that at 2:00 Eastern Time in the Roosevelt room.

Heidi?

HEIDI COLLINS, CNN ANCHOR: A cabinet level position, Elaine, is going to have to be confirmed and everything, correct?

QUIJANO: That's right. And you know, it's interesting to note, Heidi, the climate of course that exists here in Washington when you're talking about confirmation. I asked a senior official what they anticipate in terms of a confirmation process for this particular nominee. This official said look, it's very early yet. We haven't even really begun to have conversations, but you can bet, it's a highly charged atmosphere here in Washington and there could possibly be some fireworks. We don't know of any at the moment. This announcement hasn't even been made officially just yet, but it'll be something to keep our eye on.

COLLINS: Yes and there certainly has been often a lot of talk here, absolutely right, Elaine, about the nutrition and what we are putting in our bodies in this country. So appreciate that, Elaine Quijano at the White House.

HARRIS: A guilty plea to tell you about in an alleged plot to attack a U.S. military base in New Jersey. One of six men arrested in the Fort Dix case has pleaded guilty. The 25-year-old native of Kosovo admits providing weapons to a group of an accused plotting the attack. He faces five years in prison. The others could face life imprison. Investigators say the men scouted bases along the East Coast but decided on Fort Dix largely because one of them delivered pizzas there.

COLLINS: Will you be looking at lower mortgage and credit card rates? Possible, if the Federal Reserve lowers interest rates. Today, the Fed is trying to ward off a recession. An interest rate cut would make money cheaper to borrow. That allows businesses to expand and hire more workers. People are actually saving money on lower rates, obviously and that allows for more consumers spending. Many analysts expect a quarter point cut in the Federal funds rate. Right now, it's at 4.75 percent. So, here's how it impacts you. If the Fed does cut rates, commercial banks reduce their prime lending rate. Right now, that rate, 7.75 percent.

HARRIS: A desperate measure as a storm moves in. Our I- reporters helping us tell this story. Tropical storm Noel hits hard in the Caribbean. Now, Florida is feeling the pain.

(COMMERCIAL BREAK)

COLLINS: Wind, waves, and worry. Tropical storm Noel is centered over Cuba right now, and strong winds and rough surf are hitting South Florida beaches this morning. Our Rob Marciano says watch out for dangerous surf and coastal flooding, but Noel is not expected to make a direct hit in the U.S. Haiti and the Dominican Republic slammed though by the storm. Emergency officials say at least 43 people were killed. We're getting I-reports about the storm too. This is from Monday in the Dominican Republic. Jose Adelis Contreras took this video with his cell phone. He says people were scared and waiting for help.

And that they were yelling for help, possibly. Jacqui Jeras is in the weather center now to give us a little bit more idea of where we are with Noel in the state.

(WEATHER REPORT)

HARRIS: Breaking news we've been following for you this morning in the NEWSROOM. Let's get to Fredricka Whitfield who is following the story out of Philadelphia. A second police officer shot in that city in as many days, Fred.

FREDRICKA WHITFIELD, CNN CORRESPONDENT: That's right. And this time at 66 and Broad Street at that Dunkin' Donuts right there where a Philadelphia police officer was shot in the head and earlier you saw images of the police officer being taken to a hospital. The Albert Einstein Medical Center there in Philadelphia. Bottom line is one officer who has been injured, let's hope for the best, but the suspect is still at large. So, you've seen choppers in the air through a number of images that we've been taking in this morning. Perhaps, we have some of the newer images.

Choppers in the air which are conducting an all-out search, not just in this community, but in surrounding communities looking for the suspect and it's unclear the motive or exactly what took place before that shooting occurs, but given the hour that it happened this morning, any Dunkin' Donuts anywhere in America usually has a lot of people, so you can believe that there are likely many witnesses. But we don't have an update on that police officer as of yet. But fingers are crossed hopefully he or she is doing just fine. Hasn't been made clear whether it's a male or female, just simply that it was an officer but we'll hope for the best.

HARRIS: Yes, absolutely. OK, Fred, thank you.

COLLINS: Quickly, want to get you to Seattle, to Seattle now. Quickly, with some tape that we've just gotten in of a situation there. We want to show you a rope rescue is going on right now. Look at this. Taking place at a construction site there in Seattle. Apparently, this 25-year-old man got trapped in a foundation dig after being hit by some kind of air explosion, is what we are seeing on our reports. And it's not quite sure what that means at this point, but obviously, they're being very, very careful getting him out of there and into the basket there. If you're familiar at all with the area, Aurora Avenue off of Denny Way.

Again, this is in Seattle, behind a gas station. So, we are understanding from the early reports here that the man has penetrating injuries. We will stay on top of this one, but a massive rescue under way, once again, in Seattle right now.

Who is protecting your kids? The agency in charge of product safety is now embroiled in a new controversy. A budget battle stirring up calls for a key resignation.

(COMMERCIAL BREAK)

HARRIS: OK, let's talk about protecting you and me. The agency in charge your product safety now in the middle of a Washington-style throw down. CNN's Brian Todd takes a look.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT: From toothpaste to toys. The wave of product recalls in the U.S. has reached crisis levels. The agency tasked to protect Americans from tainted goods has been understaffed, under funded for decades. One of its key testing labs looks like it belongs in a high school. Now, Democrats in Congress want the acting head of the Consumer Products Safety Commission to resign. That's because she's against parts of a bill that would double her agency's budget, add staff, and give it real teeth to protect us from things like lead-based toys.

BOBBY RUSH, (D) ILLINOIS: She needs to go. She needs to resign. She needs to get out of the way.

NANCY NORD, ACTING CHAIRMAN, CPSC: I am -- have no intentions or immediate plans to resign. Of course not.

TODD: Fighting a political onslaught acting CPSC head Nancy Nord says one proposal that would drastically hike penalties for companies that violates safety standards, would flood her agency with flimsy complaints. Consumer advocates couldn't disagree more.

DONALD MAY, CONSUMERS UNION: There needs to be tougher civil penalties, there would be true deterrents for manufacturers breaking those laws.

TODD: Nord says there are practical reasons why she opposes some provisions in the bill like the one that would virtually eliminate lead from all toys.

NORD: The problem is that we need to make sure that the legislation is both practical and enforceable, and I have raised some concerns about the enforceability. TODD: Critics say Nord is simply following the Bush administration's lead against regulating big business. She was once a corporate lawyer, but she told us it's that crowd she's trying to avoid.

NORD: There are provisions in this legislation that are going to increase litigation and result in this agency, ending up being in court. I don't want to be hiring lawyers. I want to be hiring safety inspectors.

TODD: Still, the senate commerce committee approved that bill that would beef up the CPSC. Including, a provision that would make the agency help whistle blowers. As for Nancy Nord, a White House official told us they support her and they accused the Democrats of politicizing consumer safety. Brian Todd, CNN, Washington.

(END VIDEOTAPE)

COLLINS: CNN's "Your World Today" is coming up in just a matter of, looks like about 12 minutes or so. And Hala Gorani is on it (INAUDIBLE).

HALA GORANI, CNN CORRESPONDENT: Pretty much.

HARRIS: Things are not synchronized.

GORANI: Anyway, either way, hope you can join us at the top of this hour. Noon, eastern. We're going to take you around the world on "Your World Today." We're going to start with those Madrid train bombing verdicts. Two years ago, one of the worst terrorist attacks on European soil. Several of those who were alleged to have organized and taken part in the attacks have been convicted, but the alleged mastermind was acquitted. We'll be taking you live to the Spanish capital.

Also, when you give money to a children's aid group, how can you be sure that it's really helping the kids? We'll bring you the bizarre story of a children's charity whose workers were arrested in Chad for allegedly trying to traffic in children. We'll be speaking to an expert.

Also, allegations of child abuse at Oprah Winfrey's school in South Africa. Our reporter in South Africa has a report and looks into this scandal. That's at the top of the hour. Back to you guys.

HARRIS: I appreciate it. Thank you.

COLLINS: Millions of Americans may soon get more choices when it comes to cable service providers. This could be very good news for a lot of people. Susan Lisovicz is at the New York Stock Exchange with details of the FCC's new rule. Hi there, Susan. This might be kind of complicated.

SUSAN LISOVICZ, CNN CORRESPONDENT: It's actually not that complicated on the surface. I mean, this decision, Heidi, will have a big effect on the 30 percent of Americans who live in apartment buildings. The FCC voting to ban exclusive deals between building owners and cable TV providers. Proponents of the decision say banning these agreements could prompt more competition and lead to lower cable rates. But others say, low rates are already being offered because building owners can negotiate discounts by guaranteeing cable companies a large number of customers.

Heidi?

COLLINS: Interesting. I was going to go into a big rant against my cable provider, but then I realized I wouldn't be very journalistically responsible.

LISOVICZ: But that's how you get sometimes a better deal, by talking to whatever provider it is.

COLLINS: Yes. We've talked, a lot. Anyway --

LISOVICZ: Go, Heidi.

COLLINS: This decision should open up the cable market and rights so there are no more monopolies.

LISOVICZ: That right and this is maybe where it gets a little more complicated. It's a whole new world in how we get our entertainment and news. A variety of companies have been trying to break into the cable market. This decision will allow for that. AT&T, Verizon, two examples. Both are known more for their phone services but have been rolling out TV programming as well. Because of that, they may come, there's no surprise that the FCC's decision was back bite AT&T and Verizon. Shares of AT&T aren't doing much, but Verizon is up more than 1 percent. Overall, we are seeing modest gains as investors hope for another interest rate cut despite a strong read, surprisingly strong reads this morning on economic growth in the third quarter.

That decision due out some, a little more than two hours from now. Ahead of that, the DOW industrials are up 56 points and nearly half of percent. The NASDAQ is two-thirds of a percent. And what a day for Google shareholders. Company's stock has topped $700 for first time. It took less than a month for the stock to leap from $600 to $700 a share. There are reports that Google's reach is going to extend even further as it unveils a long rumored operating system designed for mobile phones. There were some of us who said Google's IPO was expensive at 85 bucks a share.

COLLINS: Again, this is another one of those moments where I say to myself, I have gone into the wrong business. I did not come up with some fabulous web browser thingy dingy.

HARRIS: Worse than that, we didn't listen to Susan and Ali, the IPO at 85. We could have bought it then. They're telling us everyday what's going on.

COLLINS: Shoulda, coulda, woulda. There will be another new company. There will be plenty of other new companies. You can get in early and low. I'm going to buy my own cable company. How about that, Collins cable.

LISOVICZ: I like the sound of that.

COLLINS: Thank you, Susan.

LISOVICZ: You're welcome.

HARRIS: All right. Democratic presidential candidates move to the right. We're actually talking about Barack dancing. Should we show folks now or show folks later? Let's show you Barack dancing a bit later. You won't want to miss it coming up right here in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: Candidate breaks out by busting moves. Our Jeanne Moos is following Barack Obama.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: We're not talking break dancing. We're talking Barack dancing.

UNIDENTIFIED FEMALE: Wonderful. Makes me want to dance.

UNIDENTIFIED MALE: He's a little stiff.

UNIDENTIFIED FEMALE: He's doing this thing here.

UNIDENTIFIED FEMALE: He's doing all right.

UNIDENTIFIED MALE: Ellen is doing better.

MOOS: And how is Rudy doing?

BARACK OBAMA: I'm pretty sure I've got better moves than Giuliani.

UNIDENTIFIED MALE: Come on, Rudy. Booty that, booty that. That's right.

MOOS: We had to dig deep in our archives to unearth these moves. Tap dancing, not bad.

UNIDENTIFIED MALE: Come on, Rudy.

MOOS: Disco dancing, questionable. Rudy was shaking what he had 7 1/2 years ago at an annual event when the press lampoons the mayor and the mayor lampoons the press. Sort of makes you reevaluate Barack Obama.

UNIDENTIFIED MALE: Great moves.

ELLEN DEGENERES, HOST: You're the best dancer so far. The president...

OBAMA: It's a low bar.

MOOS: Practically on the ground. So, far the only presidential candidate to appear on the show was Hillary Clinton, and she walked onstage. Hillary prefers to have some fun...

UNIDENTIFIED FEMALE: All I want to do is have some fun.

MOOS: At events like her husband's inauguration, the only head- to-head dance competition was an imaginary one. Jimmy Kimmel live, break dancing battle between Obama look-alike, and a Hillary look- alike. Apparently, Hillary won. At church Obama seems to have that natural rhythm thing going. Even busting out a few robot moves.

UNIDENTIFIED MALE: Come on, everybody. Let's dance!

MOOS: Rudy may very well have been trying to dance badly to be funnier. As for Obama's reviews, they range from truly creepy. Obama looked like he was channeling Cher, to how can you pay attention to the issues, when he looks like that and then shaking what his mama gave him, whew, someone fan me.

UNIDENTIFIED FEMALE: I think Barack has better moves than that. He's just being conservative on TV.

UNIDENTIFIED FEMALE: Oh, he dances like the old folks.

MOOS: Who cares? These candidates are looking for a surge at the polls, not the pelvis.

UNIDENTIFIED MALE: Think presidential.

MOOS: Jeanne moos, CNN, New York.

(END VIDEOTAPE)

HARRIS: And still to come...

COLLINS: I have nothing to say, Tony.

HARRIS: OK. Oprah Winfrey promising action. She is responding to an allegation of abuse at her leadership academy for girls. "Your World Today" just minutes away.

(COMMERCIAL BREAK)

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