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American Morning
Economy Fears: Stocks Sink on Recession; South Carolina Showdown: Candidates Focus on Economy; Marine Murder; Hi-Tech Smart Shopping Cart; Romney's Tiff; Bush Economic Plan
Aired January 18, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Hey there, I'm Kiran Chetry in New York. Good to see you. The best part is if you download your list, your shopping list, it remembers what you need and it takes you through the aisles in order. So, hey, how cool is that.
JOHN ROBERTS, CNN ANCHOR: That is the most difficult part, isn't it?
CHETRY: Exactly.
ROBERTS: Trying to find that, you know. Where's that special little thing that I'm looking for? I can't find it anywhere. Hey, we are this morning, Kiran, and you would absolutely love this place. We are at the Lizard's Thicket in Columbia, South Carolina. Fabulous little restaurant. It's got all that great southern cooking.
We're here in South Carolina because tomorrow the Republicans go to the polls in the all-important South Carolina primary. Will it be John McCain? Will it be Mike Huckabee? How will Fred Thompson do? Is it do or die for him? And what about Mitt Romney? Could he pull off a half decent position and position himself to go on with some momentum?
We'll be talking about all of that throughout the morning and, of course, the number one issue emerging here in South Carolina as it is in many places across the nation, Kiran, the economy.
CHETRY: Exactly. And that's our top story this morning as well. Racing to stop a recession. Right now, the White House and Congress are putting together a package of tax breaks and incentives to the tune of billions of dollars to rescue the sinking economy. We're already getting an idea of just how much money Washington could be trying to put back into your pockets. The president expected to outline that plan a little bit before noon today. And lawmakers say there could be tax rebates, about $800, as high as $800 for an individual, up to $1,600 for families.
People trying to keep their jobs and keep up with their mortgages that may be money already spent. There are also critics saying it could be too little, way too late. Now, it comes after another awful day on Wall Street. A 300-point plunge on the Dow. Stocks have now all but wiped out gains from 2007. Stephanie Elam is in for Ali Velshi with more on that this morning. Is there still a debate going on within the economic circles about whether or not this is a recession?
STEPHANIE ELAM, CNN CORRESPONDENT: Of course. Yes. That part is not because it's something you look back at and you decide were we in a recession. Many people are saying we probably are now in a recession. But I keep using different verbs every day. I think today I'm going to use smack because the markets were pummeled yesterday. Oh, I used two.
Let's take a look at what happened yesterday. The Dow lost 237 points, nearly 2.5 percent of its value. That's the biggest drop in two months. Dow is now at a 10-month low and is now down 14.5 percent from its high. Nasdaq off two percent yesterday, also at a 10-month low.
Take a look at the S&P. It fell nearly three percent yesterday. Biggest drop in two months. It's at a 15-month low. This all comes from Merrill Lynch's week earnings yesterday. Some week regional economic data that we got yesterday. And then, of course, Ben Bernanke testified before Congress. He was saying, it's pretty clear. The economy is not in a recession yet, but we are on our way to one and we need a quick but temporary stimulus to get people spending.
And if you're thinking, will that really work? Let's take a look at what happened in 2001, when a package like this came out. The tax rebate checks came out, $300 to $600 there. Twenty to 40 percent of those checks were spent within days. Consumers saved a 1/3 of those checks and 2/3 of the rebate entered the economy within two quarters. So like Mr. Bernanke is saying, he wants the money to come back in. The people, lower income Americans to get out there, start spending, get that money back into the system and hopefully get the economy on its feet again, Kiran.
CHETRY: All right. We're going to hear more details. We're actually talking to the counsel of the president, Ed Gillespie in a few minutes, in the next hour actually, to find out exactly what they're laying out and then we'll talk about whether or not it will work.
ELAM: Exactly.
CHETRY: Thanks so much.
ELAM: Sure.
CHETRY: John?
ROBERTS: Kiran, thanks. With one day now until the primary here in South Carolina, the economy is all the talk of the trail. Candidates are talking up their ideas to fix it or how they would approach it at the very least. CNN's Dana Bash joins me now. So what do they say?
DANA BASH: Well, you know, it's interesting. I was at an event with John McCain here in Columbia yesterday, and it seemed to be kind of thrown together what they did. He started talking about the economy. It wasn't clear that he was actually coming out with what they described is his own economic stimulus plan. And so, after he was done, we saw it on his blackberry. But it was really kind of our blackberry, I should say. But it was really kind of a great case in point of how all of these candidates, John, they all want to get out in front of the issue that's now dominating. (BEGIN VIDEOTAPE)
BASH (voice-over): Just before the South Carolina primary he needs to win, it's clear what John McCain learned from the Michigan primary he lost -- focus on the economy.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Obviously, we're seeing the news. We're seeing the concerns of people we have out there.
BASH: Unveiling a new economic stimulus plan.
MCCAIN: I will cut your taxes. I will encourage the growth. I will eliminate the wasteful and unnecessary spending.
BASH: Specifically, McCain says, he would lower the corporate tax rate, allow a tax writeoff for equipment and technology investments, establish a new tax credit for research and development. McCain has stopped warning voters that lost jobs are not coming back. That didn't work in Michigan. Now it's optimism.
MCCAIN: This is still the most powerful and greatest nation on earth. We are the greatest innovator, the greatest exporter, the greatest importer, the strongest economy.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I will be releasing soon my economic stimulus plan to give the economy a short-term boost.
BASH: In a hurried appearance before he left South Carolina for Nevada, Mitt Romney promised he'll soon announce an economic plan of his own.
ROMNEY: I do believe it makes sense for Congress to take immediate action. The consequence of the economy falling into a recession is one which can be calculated in large numbers for the government, but in very important heartfelt changes for the families of America.
MIKE HUCKABEE (R), PRESIDENTIAL CANDIDATE: I want to say to you, I was probably one candidate, particularly in my party, who started seeing that we have some economic challenges.
BASH: As for Mike Huckabee, no talk of stimulus, just, I told you so.
HUCKABEE: Now, a few months later, all of them are saying, boy, we've got some economic challenges. Well, they didn't know that a little bit ago if they had gotten out of Washington and out of the ivory towers.
(END VIDEOTAPE)
BASH: Now the thing that all of these Republican candidates do have in common is that they all say whatever is done, it needs to be paid for. You know, John McCain, of course, talks about paying for his plan by cutting pork. But, you know, the concern among Republicans particularly when they're trying to appeal to Republicans here in the state of South Carolina is excess spending. They don't want to do anything that balloons the deficit, particularly when you're talking about working about Democrats.
ROBERTS: Yes. Dana, a place like South Carolina, you don't want to be talking about spending more money.
BASH: Absolutely.
ROBERTS: Dana bash, thanks.
The Nevada caucuses are tomorrow for both the Republicans and the Democrats. Nine precincts will be in casinos. The federal judge ruled yesterday that workers can caucus there. The state Teacher's Union backing Hillary Clinton and filed a lawsuit protesting the sites after the Culinary Union endorsed Barack Obama.
Clinton supporter Robert Johnson says he is sorry about a speech he made last Sunday where he alluded to Barack Obama's past drug use. Johnson, the founder of Black Entertainment Television explained what happened on the situation from yesterday.
(BEGIN VIDEO CLIP)
VOICE ROBERT JOHNSON, BLACK ENTERTAINMENT TELEVISION: Sometimes in campaigns you get carried away in your zeal to support your candidate. And you say things that are inappropriate and not proper for a campaign that should be based on the issues. And that's why I issued this personal apology to Senator Obama.
(END VIDEO CLIP)
ROBERTS: And Johnson says Obama accepted his apology, by the way.
Find the most politics in the morning right here on CNN. Mike Huckabee joins us at 7:15 Eastern. Fred Thompson is going to be our guest at 8:30 Eastern right here on AMERICAN MORNING. And right now, let's go back to New York, and here's Kiran.
CHETRY: John, thanks. Well, we check in now with Alina Cho. She's with me here at the update desk for a look at the other headlines this morning, including new details on the Christmas Day tiger attack at the San Francisco Zoo.
ALINA CHO, CNN CORRESPONDENT: Yes. Still a lot of he said she said and big questions about whether -- what that means for the criminal investigation. Kiran, good morning. Good morning, everybody.
There are new developments this morning in the investigation of that deadly tiger attack at the San Francisco Zoo. According to court documents obtained by the "San Francisco Chronicle," one of the two surviving victims admitted he was drunk and says he taunted the tiger before it escaped. That would be Paul Dhaliwal. Police say the teen was yelling and waving at the animal while standing on a railing near the edge of the tiger moat which surrounded the enclosure, of course. 17-year-old Carlos Sousa, Jr., a friend, was killed in the Christmas Day attack. The two brothers were seriously injured.
The CIA says Al-Qaeda is behind the assassination of former Pakistani Prime Minister Benazir Bhutto. CIA Director Michael Hayden tells the "Washington Post" Bhutto was killed by fighters linked with the tribal leader in northwestern Pakistan. The CIA says this network is behind a new wave of violence that is now threatening the stability of President Musharraf's government. Pakistan has been a key U.S. ally in the war on terror.
The military's number two man in Iraq says he has somegood news for U.S. troops and their families. Army Lieutenant General Ray Odierno says a slow and steady withdrawal of U.S. troops from Iraq is a very real possibility. Odierno thinks that Iraqi forces will be able to take over security even faster than he originally thought. But he says he doesn't want to pull out a, "whole bunch of U.S. forces" and he says, some U.S. air and ground forces will likely have to stay in Iraq for another five to 10 years.
Hollywood writers are still on strike. But the Director's Guild of America has cut a deal with the Hollywood studios. The tentative agreement will increase residuals for programs shown on the Internet. Of course, that's a major sticking point in the writers strike. Now, the pressure is on for the writers to settle. The Writer's Guild says it will take a close look at the director's deal.
And don't miss this story. They're identical twins with identical perfect scores on a key college entrance exam. It's unbelievable. Brian and Ross DeVol of Bellevue, Nebraska, each scored a perfect 36 on the ACT. Look at them. Now they're waiting to see which one of them will be the valedictorian of their class.
(BEGIN VIDEO CLIP)
ROSS DEVOL, TWIN WITH PERFECT ACT SCORE: I'm not sure I would try this hard if I were competing with somebody for the valedictorian position because I might get a few B's here and there, but so far it's still all A's.
(END VIDEO CLIP)
CHO: Now Brian got the perfect score the first or second time he took the test. It took the other brother, Ross, three tries before he scored his. And to put all of this in perspective, only one in about 4,000 students gets a perfect score on the test. Apparently, Kiran, they became really competitive with grades because they both said they weren't very good in sports, but they are very good in physics and both are in the band.
CHETRY: Hey, how about that?
CHO: And they look towards college now.
CHETRY: It is just a sign of how times have changed. It seems that we're getting text messages from college admissions saying come to our school, come to our school.
CHO: It's crazy. What happened to the SAT?
(CROSSTALK) CHETRY: I think this was like one of those --
CHO: I know. It's another one. That's right.
CHETRY: But didn't we -- I know. I tried to block it out of my mind.
CHO: Exactly.
CHETRY: The SAT was bad enough. Congrats to both of them. Bright futures. And their mother said I read to them, even when they were tiny.
CHO: Well, there you go.
CHETRY: Thanks, Alina.
CHO: You bet.
CHETRY: Well, Alaska is home to one of the world's largest moose population. Check out this bull moose wandering up and down the snow- covered sidewalk outside of a church in downtown Anchorage. People stopped, got out their cell phones to captured the moment. Environment analysts say there are so many moose in the state that human interactions are actually pretty frequent.
How about it? Maybe they're frequent, but it was still getting quite a -- generating a lot of buzz. It's almost like the paparazzi following around Britney. How about it?
Rob Marciano at our weather update desk tracking extreme weather for us in the northeast. Any moose sightings to tell us about, Rob?
ROB MARCIANO, METEOROLOGIST: Wow. You know, I did a story on moose road kill up in Maine a couple of years ago, and I can tell you that they're dangerous on the roadway. But they're darn cute when you're viewing them from afar.
Hey, I want to show you what's going on with the weather across the northeast. You guys are in for a little bit of -- while you've been dealing with some wet weather and some snow in spots. So depending on where you live, like it's typically the case, is where you're going to see the most action this morning.
We do have winter weather advisories all north of the city. But basically, the danger line runs right around through there. Everywhere north of that line is where you're seeing either some freezing rains, some sleet or some snow. And parts of Maine under a heavy snow warning this morning.
Take a look at some of these temperatures that tell the story as well. The freezing line right about there. But look at some of these numbers over the Midwest. Eight degrees right now in Chicago. That action is moving south and east, and we are in for some of the coldest air of the season coming up this weekend pretty much everywhere east of the Rockies. Now, down across Texas, some of that cold air is going to mix in with this batch of moisture developing around Austin and San Antonio, which will be rolling up the Gulf Coast and heading into well, some of that cooler air. Believe it or not, we have some winter storm watches that are posted for the deep south, including parts of central Alabama which could see a few inches of snow.
We might see more snow here in Atlanta. It's a very tricky forecast as we go through the next 24 to 36 hours. Where the snow falls, how much it falls, and when it meets up with that cold air are all questions that we're going to have to figure out here in the next few hours, and we'll be updating that forecast.
Bur right now, Birmingham, Alabama, believe it or not, under a winter storm watch with the potential of seeing, well, a few inches of snow on the ground by this time tomorrow morning. Interesting weather shaping up. And unfortunately for the kids who want to get a day off from school across the deep south, it doesn't happen very often. They already have tomorrow off, regardless of the weather.
CHETRY: Oh, all right. Good, because they get to enjoy it. Do you hear it snowed for the first time in 100 years, I think, in Baghdad as well?
MARCIANO: We showed some I-Reports out of Saudi Arabia of it snowing as well. Yes. It's wacky weather going on across the Middle East also.
CHETRY: Pretty neat. All right. Rob, thanks so much. Still ahead, you're watching the most news in the morning. Coming up, grocery shopping goes high-tech. We're going to get a sneak peek. There it is. This could be the shopping cart of the future, even guiding you down the right aisles and checking out for you right in your cart so you don't have to wait in line. We'll explain how the entire thing works coming up.
Also, new questions now for the wife of the marine at the center of a nationwide manhunt for murder. Did he confide in her before he vanished, and if she give him a head start? AMERICAN MORNING legal analyst is going to be joining us straight ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. There are new details today in the death of pregnant marine Maria Lauterbach. Police say that the wife of the marine suspected in the killing knew about the death but didn't report it to police until the next day. Police say that while driving to a lawyer's office last Thursday, Corporal Cesar Laurean told his wife, Christina, that that Lauterbach had demanded money from him, and then claimed that the 8-months pregnant Lauterbach killed herself and that he then buried her in the backyard.
The next day, his wife gave several notes that were written by her husband to police. They say that his wife who is also a marine has been cooperative and is not a suspect. Laurean is believed to be now hiding out in Mexico. There's also another disturbing report this morning that several people may have attended a cookout over the site where Laurean allegedly buried Lauterbach's body. "People" magazine senior editor Larry Sutton appeared on "NANCY GRACE" last night and made those allegations.
(BEGIN VIDEO CLIP)
NANCY GRACE, HOST, "NANCY GRACE": Larry, were they having some sort of a barbecue or a party or a bonfire or something?
LARRY SUTTON, SENIOR EDITOR, PEOPLE MAGAZINE: I wouldn't classify it as -- I wouldn't classify it as a party. I wouldn't classify it as a bonfire where they were cooking and barbecuing things like that. It doesn't look like they were celebrating her death. That would be putting it one step too far.
(CROSSTALK)
GRACE: They were having a barbecue...
SUTTON: Right.
GRACE: ... on top of the bodies?
SUTTON: I'm not accusing one bit of this. Yes. Well, perhaps. I don't know. I don't know what goes in your mind when you do something like this?
GRACE: OK. I'll tell you what goes through my mind when I hear it? It's called the D.P., death penalty.
(END VIDEO CLIP)
CHETRY: For the latest now on the case, we turn to AMERICAN MORNING's legal contributor Sunny Hostin. It just seems so gruesome, that allegation, that there were other people present when the body of this pregnant marine was being burned at this person's house.
SUNNY HOSTIN, AMERICAN MORNING LEGAL CONTRIBUTOR: Absolutely.
CHETRY: It also leads to questions about whether or not more people knew what was going on.
HOSTIN: Well, I think we can assume at this point, that people at least know where he is and that they are helping him because although he's a marine and he's trained in combat and trained to survive in these sort of circumstances, people must know where he is.
But the bottom line is, his wife, at least, we now know it's been reported knew about this a day before she went to police. And that's disturbing. But, of course, wives are not allowed to be compelled to testify against their husbands. So the fact that she's a marine and the fact that she's cooperating is good right now. But I wonder what's going to happen when and if he is caught and is brought to trial. How helpful she is going to be? CHETRY: OK. So you're saying that she can't be compelled to testify against him?
HOSTIN: Right.
CHETRY: She can't face charges for not coming forward earlier. But does it raise questions about whether or not, even though they say she's helping with the investigation now, she helped him before.
HOSTIN: Yes, and I think it does raise questions. It's very early in this investigation as far as I'm concerned. It's really still out going. There's a manhunt going on. We don't know what's going on, but it certainly raise questions as to how much she knew, when she knew, what she knew. But again, she cannot under the marital spouse privilege, she cannot be compelled to testify in the court of law.
CHETRY: All right. This case has been getting a lot of attention as we know, when he's found which eventually they're assuming and hoping that they do get cooperation from Mexican authorities to find him.
HOSTIN: Yes.
CHETRY: What is -- how will his trial happen fairly? I guess you could say, with all of the publicity that's happened, all of these details out there?
HOSTIN: It's just like with any other trial, Kiran. I mean, we know with O.J. and typically what attorneys do is they ask for a change of venue. They wan the trial to be somewhere else. But everyone knows about this trial.
CHETRY: Right.
HOSTIN: But, you know, about this case. I believe that you can get, you know, a fair trial. You can get 12 people that are impartial that will listen to the evidence. I've been a juror. I've been in front of juries. People do take that sort of thing seriously. He can get a fair trial. But the bottom line is it's not looking good for him right now.
CHETRY: Right.
HOSTIN: I'm sure that with Nancy Grace, it sounds a lot like the death penalty to me here.
CHETRY: Sunny Hostin, great to see you as always, thanks.
HOSTIN: Thank you.
CHETRY: John?
CHETRY: Kiran, a dust-up on the campaign trail. Mitt Romney gets fired up when asked about having a lobbyist on his campaign staff.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Did you hear what I said? Did you hear what I said, Glen?
GLEN JOHNSON, ASSOCIATED PRESS REPORTER: You don't have a lobbyist running my campaign.
ROMNEY: I said I don't have a lobbyist running my campaign, and he's not running my campaign.
(END VIDEO CLIP)
ROBERTS: We will show you the sharp exchange with the reporter and why the candidate wouldn't let it go. Coming up.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Find the bar code at the bottom, and you scan it and it pops up right there on your screen.
(END VIDEO CLIP)
CHETRY: Inside the Media cart. It knows what products you need and can navigate you to them. Is it an invasion of privacy or the wave of the future? Find out ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
(BEGIN VIDEOTAPE)
CHETRY: Hi-tech grocery shopping is no longer reserved for families like the Jetsons. In fact, the next generation of shopping cart will soon be headed to a supermarket near you. Our Veronica De La Cruz has one right here on the studio to give us an early look. Looks like your normal regular cart for the most.
VERONICA DE LA CRUZ, CNN CORRESPONDENT: I think it's great. You know what you're looking at here is the shopping cart of the future. This is Media cart and Microsoft basically teaming up to bring us the latest in technology when it comes to shopping, Kiran.
CHETRY: How does it work?
DE LA CRUZ: Let's just say that you want to download a shopping list. You can do that at home. You can type and go to the Web site, type it out, and then you show up the store. You swipe your little C-card, and there it is.
Let's just say that the first item is Cheerios. Really, really simple process. All you do is find the bar code on the bottom, and you scan it, and it pops up right there on your screen. So again, everything coming back to the screen there as you go along in the store. It's going to subtotal all the items.
CHETRY: So you already know what you're paying for and you also get some info about each product as you're shopping.
DE LA CRUZ: Yes. Yes, you do. You know, everybody is so hung up on caloric value... CHETRY: Right.
DE LA CRUZ: ... and fat content, right? So, you can actually find that on the screen as well. All of that is right there. Let me show what else you can find on the screen. You can look at all the specials on the store. Again, like we were just saying, it give you an estimation of how much money you've spent. If you scanned the item a couple of times by accident, you can remove it. You can also find the recipes there. You can e-mail it to yourself.
CHETRY: And what happens when you get to checkout. Do you have to check out again?
DE LA CRUZ: It's so easy. This whole thing operates with RFID technology. The RFID chip is right on the front of your cart. They call this scan and back technology. And the reason why is as you scan the item, we just scanned our Cheerios, right? You just throw it in the bag. It is a 12-second process. You get right up to the front, and the checkout will read what's in your cart. You slide your credit card and you're out the door, 12 seconds.
(END VIDEOTAPE)
CHETRY: Pretty cool, right? Well, the carts are due out in stores around the country in about six months. We talked to the makers of the Media cart about privacy. You know, there are people who are concerned. Well, maybe I don't want someone knowing exactly what I buy every time I go to the grocery store.
They said that, first of all, you don't have to identify yourself to use the tools on the cart, and customers can log in or they can just stay anonymous or if they choose to, they can just pull down that screen and not use the technology at all. But what do you say, John? I bet you it would make your trips to the grocery store a bit easier.
ROBERTS: Yes, my trips to the grocery store living in New York City are few and far between. It's a lot of takeout. But the time that I get back home to Virginia, I do a lot of shopping. Love to have something like that, Kiran.
CHETRY: All right. Well, you test it out. Tell us how it works for you.
ROBERTS: I'll do my best.
Hey, this morning we're getting the details of a new plan to jump start the stalling economy. President Bush is expected to outline parts of an emergency economic package today. Insiders say it could include advanced tax rebates of $800 for individuals and $1,600 for married couples. It looks like there would be a cap on income as well that the rebates would only be available to individuals who make less than $85,000 a year or couples who make less than $110,000 a year.
But that brings us to this morning's "Quick Vote" question. You got a tax rebate, what would you do with a little bit of extra money from the government? Would you spend it? Would you save it or use it to pay off debt such as your credit cards?
Cast your vote this morning at CNN.com/am. We're going to have the first tally of votes a little bit later on this hour.
Mitt Romney takes exception to a reporter's question during a campaign stop in South Carolina. We'll show you what got Romney all riled up.
And cancer awareness, a big issue here in South Carolina. This morning, the new ad campaign featuring Lance Armstrong that is raising some eyebrows. Our Dr. Sanjay Gupta will join us. That story and today's headlines when AMERICAN MORNING returns.
(COMMERCIAL BREAK)
KIRAN CHETRY, CNN ANCHOR: Shot this morning of the CNN Express Bus traveling crisscrossing all across the country right now as primary season well under way. I think Columbia, South Carolina this morning. 39 degrees shaping up to be 56 degrees there in Columbia on this Friday, January 18th. I'm Kiran Chetry here in New York.
And John, that looks like today would be, I guess the best weather you've had so far on the road. And you're inside.
JOHN ROBERTS, CNN ANCHOR: It is. It's a little bit chilly out there today. But we are inside. That's the best part of it and certainly not cold like it was in Las Vegas yesterday. I'm John Roberts live from Columbia, South Carolina. We are at the Lizard's Thicket Restaurant this morning. Popular place here in the capital of South Carolina and were looking forward to the big Republican primary coming up tomorrow. And what this has going to do to shape the race.
Will it be John McCain who comes out on top or will it be Mike Huckabee who is campaigning hard? And then what happens to Fred Thompson and Mitt Romney? All of that coming up. We're also going to be speaking with Mike Huckabee and Fred Thompson this morning, Kiran. All of that coming your way in just a little while. But right now, back to you in New York.
CHETRY: All right and we have some news just in to us. Word from Iceland's Channel 2 TV that former chess champion Bobby Fischer has died. He was 65 years old. Fischer won the World Chess Championship back in 1972. Considered by some to be one of the most gifted chess players of all time. We'll bring you more details as they become available.
We also have details of a plan to give the economy a boost. President Bush expected to outline parts of an emergency economic package today. Insiders say that it could include tax rebates in advance of $800 for individuals and $1600 for married couples.
Should the CIA be allowed to keep a secret? That's what a federal judge in New York is trying to decide right now. He says the agency violated a court order when it destroyed al Qaeda interrogation tapes back in 2005. The judge may ask officials who saw the tapes to talk. The American Civil Liberties Union is asks the judge to find the CIA and contempt to court for failing to preserve those tapes. And missing credit card information could leave 650,000 people at risk. The information is from JC Penney and up to 100 other stores. The company handing the data says there's been no sign its stolen and they won't name the other stores involve but they say they will pay for credit monitoring of those affected.
John?
ROBERTS: Kiran, the state of the economy is the big campaign issue here in South Carolina. The Republican primary tomorrow as we said. The Democrats will be keeping a close eye on those results as they fine tune their campaigns for their primary, which is a week from Saturday on the 26th.
CNN's Suzanne Malveaux has been talking to voters in the state all week long. She joins us now from Charleston, a little ways away here from the capital of Columbia.
Suzanne, is the economy the number one issue in the minds of many Democratic voters in the state?
SUZANNE MALVEAUX, CNN CORRESPONDENT: It sure is, John. I mean, there's a debate over whether or not there's a recession. But the people I talk to really say they feel the economic crunch here. They really feel that times are tough. You take a look at the statistics. We're talking about 20 percent uninsured in this state. 14 percent live in poverty. And the job losses when you look at the housing industry and how that's impacted folks, they're talking about people who build the windows, the doors, who cut the lumber. Those are the kinds of people who have lost their jobs.
And so they are waiting for something to really turn around. They're listening very carefully to the different candidates' economic stimulus packages. And numbers aside, John, there was just a couple that we met yesterday. It gives you a pretty good sense of how folks are doing. A volunteer had to come to this elderly couple. She was bedridden. He went there to help her with her medicine, her needs. He had to read the mail to the gentleman that she was married to.
Obviously, really hard times. So a lot of people are talking about how do we get better jobs? How do we get better education? How do we make better lives for ourselves and our families?
John?
ROBERTS: Suzanne, the candidates are also trying to bury the hatchet over the idea of race and what happened last week in the campaign and earlier this week. Last election, almost half of the Democrats who turned out before the Democratic primary were African-American. Is it really an issue that they can put away or is it always going to be lingering there at some level?
MALVEAUX: Well, sure. The campaign is definitely kind of want to scoot it to the side. But a lot of people I talked to, race is an inevitable factor here in looking at the candidates. It was really interesting because what the polls showed is that at least in the African-American community, there was a split along age or generational lines that most young people were going for Barack Obama. Most older people for Hillary Clinton and association. There are loyalties to the Clintons, for the civil rights movement, long- standing relationships.
But it was -- we've been here for days now. And we realized the theory is kind of turned on its head a little bit. It's a bit more complicated. You've got older voters as well who really look at Barack Obama and say give this guy a chance. That this is a realization of the civil rights movement. A very personal struggle for a lot of people.
So you can't really predict what's going to happen here. We saw that in Iowa and New Hampshire. Very interesting discussions is going on. And a lot of it is very personal. Having to do with faith and those kinds of intangible things you can't quite put your finger on, so fascinating situation here.
John.
ROBERTS: And again, to that interesting signal that we saw in the Michigan race on Tuesday night where Hillary Clinton was the only name on the ballot. But 68 percent -- almost 78 percent of African- Americans voted uncommitted. They did not vote for her. How might that translate here in South Carolina?
MALVEAUX: Well, what you might see is that there's not necessarily that strong sense of loyalty. Maybe a sense of loyalty, but not as strong as you would expect in the Hillary Clinton depending on some of those older voters and those established relationships that she has with older Democratic African-American voters.
So what I did -- when I talked to a lot of people, we went to a bible study, a pizza parlor, the local college. And what some of the elderly -- elder church ladies were saying to me was that, look, they have a fond affection for Hillary Clinton. But they say when it comes to change; they really want to see something entirely different. They believe that is Barack Obama. So we'll just have to see how it all plays out.
ROBERTS: All right. Suzanne Malveaux for us in Charleston this morning. Suzanne, thanks. And a reminder, find the "Most Politics in the Morning" right here on CNN. Mike Huckabee joins us at 7:15 Eastern. And Fred Thompson will be our guest at 8:30 Eastern here on AMERICAN MORNING.
Kiran?
CHETRY: There also some tense moments on the campaign trail for Republican Mitt Romney. It was during an appearance yesterday in an office supply store in Columbia, South Carolina. Romney got into a verbal tip with an associated press reporter. Listen to it a little bit.
(BEGIN VIDEO CLIP)
MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: I don't have lobbyists running my campaign. I don't have lobbyists that are tied to my...
GLEN JOHNSON, REPORTER: That is not true, governor. That is not true. Ron Kaufman is a lobbyist.
ROMNEY: Did you hear what I said? Did you hear what I said, glen?
JOHNSON: That you don't have lobbyists running your campaign.
ROMNEY: I said I don't have lobbyist running my campaign and he's not running my campaign.
JOHNSON: He's one of your senior advisors.
ROMNEY: He's an advisor.
(END VIDEO CLIP)
CHETRY: (INAUDIBLE), Romney wanted to make sure that the AP's Glen Johnson heard what he was saying.
(BEGIN VIDEO CLIP)
ROMNEY: He's not running my campaign. He's not running my campaign. He's not running my campaign.
JOHNSON: There's another lobbyist involved in your campaign too.
ROMNEY: Listen to my words, all right? Listen to my words.
JOHNSON: That's not (INAUDIBLE). Running your campaign and giving you advice. Come on.
UNIDENTIFIED MALE: Safe the argument...
ROMNEY: He approaches me, Eric. OK. Let's talk. Let's you and I talk.
JOHNSON: I'll be glad anytime.
(END VIDEO CLIP)
CHETRY: Well, the lobbyist in question, Ron Kaufman, is a senior Romney advisor. Romney's former gubernatorial chief of staff, Beth Myers, actually runs his presidential campaign. But it looks like all's well that ends well because they did have nice remarks to say back and forth to each other. In fact, Mitt Romney invited him up the campaign bus to come up and come to the front and sit with him. So, perhaps all the back and forth is water under the bridge now.
Also, don't forget, join our own John Roberts and Anderson Cooper in the CNN election center, tonight, 8:00 Eastern. And you can also head to our webpage, cnn.com/am to find out more about the "Most Politics in the Morning". Go on the road with John. See some of our interviews with the candidates and hear all of the behind-the-scenes dish at cnn.com/am. Here's a heart-warming story that caught our eye. Marlena Hayes was a full-time college student, part-time waitress working at Overland Park, Kansas and she got more than the standard 15 percent tip from one generous customer this week. Hayes says she was talking to a coworker about how she was struggling to pay for her books and the customer overheard because along with the money for the meal was a $400 tip and a note that said good luck in school.
(BEGIN VIDEO CLIP)
MARLENA HAYES, GOT $400 TIP: One of my coworkers was actually holding me. I was shaking. I was just so touched and so overwhelmed. I was going to have to work seven days a week for the first month or two of my new semester. And thanks to her. I actually get two days off a week now where I can be at home studying. Last night was the first night in about two months that I've gone to bed not worried about money.
(END VIDEO CLIP)
CHETRY: Hayes says that with the extra money, she'll be able to work fewer hours. Have some more time to study. She says the customer was a woman with two young kids. She says she hopes to see her again so she can thank her. How nice was that?
ROBERTS: That's a terrific story. Hey, lots of folks here in South Carolina, Kiran, waking up to a provocative new advertisement this morning featuring Lance Armstrong. His message for the candidates and for the rest of us. Dr. Sanjay Gupta joins us here in Columbia.
And the South Carolina primary just a day away. How the candidates are tailoring their messages in these final hours. It's the "Most Politics in the Morning" live from the Lizard's Thicket Restaurant in South Carolina. And up there in New York, Kiran wishing she was here to get some of those biscuits and sausage gravy. We'll be right back.
(COMMERCIAL BREAK)
ROBERTS: We're back at the Lizard's Thicket in Columbia, South Carolina. The CNN Election Express parked there outside. John Roberts back inside here. Before we get to Super Tuesday, we have got a crucial task for Republicans here tomorrow.
South Carolina could put John McCain in the lead or knock Fred Thompson all but out. Joining me now is CNN political analyst John Dickerson, who is also the chief political editor for slate.com. Who needs to win South Carolina the most? It really does seem to be coming down to a contest between John McCain and Mike Huckabee.
JOHN DICKERSON, SLATE.COM: That's right. It's between those two. As you mentioned, Fred Thompson, this is it. He really needs to win it the most. Because he has put all of his chips on the table here and if he doesn't win, that's really got to be it for Thompson. So he's really got to win. It doesn't look like he's going do that. But it's between McCain and Huckabee to get some momentum going into that next important contest in Florida. ROBERTS: There were some interesting moments on the campaign trail yesterday, particularly on the Mike Huckabee side including one that devote members of the 2000 race. Take a listen to this.
(BEGIN VIDEO CLIP)
MIKE HUCKABEE, (R) PRESIDENTIAL CANDIDATE: You don't like people from outside of the state coming and telling you how you ought to raise your kids. You don't like people from outside of the state coming down and telling you what to do with your flag. In fact, if somebody came to Arkansas and told them what to do with our flag, we would tell them where to put the pole.
(END VIDEO CLIP)
ROBERTS: So he has resurrected the issue of the confederate flag in South Carolina which really got settled eight years ago.
DICKERSON: This is a big deal. It was settled eight years ago. He's taken it down from atop of the state house. Folks still protest about this at McCain events and all of the events I've been to here. This is a very charged issue. And Huckabee is really playing with fire.
ROBERTS: So what was this? Was this a reminder to people in the state who don't like John McCain? Hey, remember, it was John McCain who told you to take the confederate flag down off the state house. I wouldn't say something like that.
DICKERSON: That's right, exactly. McCain is a busy body. He puts his nose in here. He's not our kind of people. We don't like him. And Mike Huckabee is our kind of fellow and so we should vote for him.
ROBERTS: But there's also plenty of things that Mike Huckabee would suggest the state do.
DICKERSON: Well, sure. Mike Huckabee has lots of suggestion about lots of things. He's willing to speak on scripture and make lots of suggestions about things. But in South Carolina, he knows better than to tell them what to do with their flag and this is very coated and very -- very volatile language here in South Carolina.
ROBERTS: The economy quickly becoming the number one issue here. President Bush coming out with outlining a list to stimulus package today. The Republican candidates so have to tread a very fine line here in South Carolina when it comes to stimulus packages. Because they don't want to be seen as spending a lot of money.
DICKERSON: That's right. There are a lot of fine lines for candidates to walk here. They don't want to look like they're spending too much money. Also, they have to figure out how to react to the president's plan. There may be things in it that they don't like. But part of this is not only in South Carolina and talking about the economy here, but it's also for the rest of the states. We're now moving into almost a national primary. The national issue is the economy. And so they all need to have something that's going to play well in those national media hits. ROBERTS: Well, we don't have long to wait to see how it played. John Dickerson, as always good to see you. Thanks.
Kiran?
CHETRY: All right, thanks, John. Well, you know, it's breakfast time. And coming up in our next hour, Dr. Sanjay Gupta is going to be taking a look at what's big southern style breakfast like the one I'm sure you're going to be showing us from your diner might have to do with health problems in the south. Everybody though, not just southerners love a good morning meal. So we want to hear from you. What's your favorite bad-for-you breakfast? E-mail us at am@cnn.com. We're going to read some of the recipes coming up.
Also, still ahead. Online search giant, Google, heading in to a new venture involving millions of dollars and it's just a drop in the bucket of what's in store. We're going to explain just ahead.
Plus, cycling champ Lance Armstrong as you've never seen him before. A provocative new ad and what Lance's message wants you to ask the candidates. Dr. Sanjay Gupta shows us live from South Carolina coming up.
(COMMERCIAL BREAK)
CHETRY: Here's a look now at what's making headlines this morning. Details of a plan to jump start the stalling economy. President Bush expected to outline parts of an emergency economic package today. The associated press says it could include tax rebates as high as $800 for individuals and $1600 for married couples.
In fact, coming up, we're going to be speaking to Ed Gillespie, counselor to the president in about 30 minutes from the White House lawn to get more details about that plan.
Meanwhile, the Pentagon saying 75 percent of Baghdad is secure. Compare that to a year ago when only 8 percent of the city was under control. Military data reported in "USA Today" intended to show the progress, since 30,000 troops were added to U.S. forces in Iraq.
A volcano eruption in southwestern Columbia forces thousands to evacuate. About 8,000 people needed to flee the Galeras Volcano. One of the most active in Colombia. Schools canceling classes today. Experts call it a violent eruption and say ash is being thrown up to five miles into the air. So far, no one has been hurt and there are no serious reports of any property damage.
New information now this morning about the tiger attack that happened on Christmas Day at the San Francisco Zoo. There are court documents now revealing that the young men who were mauled were yelling and waving at the tiger before it escaped and that one of them was drunk. It's all according to a search warrant affidavit that was obtained by the "San Francisco Chronicle."
John? ROBERTS: Kiran, coming up on eight minutes to the top of the hour now. Some folks here in South Carolina are waking up to an unusual ad this morning in their local papers. It shows Lance Armstrong in the middle of his cancer fight. Take a look at that photo there. It's all about promoting cancer awareness and prevention. Our chief medical correspondent Dr. Sanjay Gupta is here with us this morning. Why is cancer such an important issue here in the Palmetto State?
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, it has some of the highest cancer death rates of anywhere in the nation. South Carolina does. Some of the numbers are downright startling. One in two men in this state and one in three women are likely to get cancer at some point in their lifetime. So, you know, that really affects just about everybody, or at least someone in their family. I think even more than that, when you really start dig down here and investigating it, there's some huge disparities here, John. Some of the biggest disparities anywhere in the country.
For example, an African-American woman who develops breast cancer is 60 percent more likely to die of that breast cancer as opposed to a white woman who also develops breast cancer at the same stage, same time frame, everything. That's a huge disparity.
African-American men and women more likely to die of smoking-related cancers as compared to white women or men. There's all sorts of different disparities here. There's lots of different reasons as well. But that's what people here in South Carolina face.
ROBERTS: The troubling statistics, what's being done about this?
GUPTA: Well, you know, part of it is the access to care issue, you know. First of all, trying to figure out why does this exist? Part of it is just simple education. There are so many cancers out there right now that are totally preventable. There are hundreds of thousands of lives that could be saved because of what we already know. So that's the first thing that's being done is try to raise awareness.
And this ad that you've been showing all morning, really, in the newspapers today here in Charleston, trying to do that. And it's from Lance Armstrong. Again, as we've talked about it, reminding people that in 1996, he had cancer on his mind and do the presidential candidates have cancer on their mind now. Try to improve funding, try to improve awareness about getting early detection.
ROBERTS: Yes, of course, he has launched a huge campaign in Congress to try to increase funding for cancer. What do the candidates want? What do they propose?
GUPTA: Yes and I just want to point out in full disclosure. I said this on the "LIVESTRONG" board and that's exactly what he's talking about. He is trying to talk about increasing funding. The NCI budget has actually gone backwards. He's actually talking to a lot of candidates about this and also reminding them that a lot of them have a very personal connection with cancer. I mean, it's possible, we could actually elect somebody who's either had cancer or had cancer in their family. That wouldn't be one of the first times that's happened.
John McCain, for example, melanoma. Fred Thompson, lymphoma. We know those two for sure.
ROBERTS: Rudy Giuliani prostate cancer.
GUPTA: Right. Those are well-documented. But also Barack Obama's mother died, for example, of uterine cancer. Hillary Clinton's mother-in-law died of breast cancer in 1994. John Edwards' wife had metastatic breast cancer. So lots of different connections here.
They talk specifically about trying to increase funding many times, but also Governor Huckabee says, how about preventive strategies. John Edwards talks about how about a national cancer coalition strategy. John McCain talks about this idea that you know, we have a lot of information already. We spend too much on chronic diseases. How about shifting some of that money towards prevention. So you're starting to hear everyone at least discussed these issues.
ROBERTS: Good ideas. Sanjay, thanks very much. We'll get you back in just a little while to talk about the health effects of the good food they serve here in South Carolina.
GUPTA: Our patrons were eating.
ROBERTS: I was kind of shocked. A biscuit with sausage gravy, 551 calories and 31 grams of fat. We'll be staying away from that one.
Don't miss Sanjay's up coming special "Broken Government, Critical Condition." It airs Thursday, January the 31st at 11:00 p.m. Eastern. And Kiran, stay away from the biscuits with sausage gravy.
CHETRY: I just can't. There's nothing I can do about it. I'm drawn to them.
You know, there's something new from Google, John. It's called -- I know you love Google Earth. This is called google.org and it involves a plan to give away $25 million to address climate change in health developing countries. And Google promised when it went public 4 years ago to reserve one percent of its profit and equity to quote, "Make the world a better place." Well, Google.org expects to give away as much as $175 million over the next three years.
Still ahead, Mike Huckabee was riding high after Iowa. But then there were two third place finishes. Does he need a strong showing in South Carolina to keep his campaign going? What are the issues he's talking about there that may appeal to voters in that key state? We're going to ask him coming up.
Also, the CIA says it knows who assassinated Benazir Bhutto now. The revelation ahead. The next hour of AMERICAN MORNING begins right now.
(COMMERCIAL BREAK)
ROBERTS: To the rescue.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: A fiscal stimulus package should be implemented quickly.
(END VIDEO CLIP)
ROBERTS: The emergency plan to turn around the economy by putting money in your pocket.
Plus, what would they do?
(BEGIN VIDEO CLIP)
HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: I want a moratorium for 90 days on home foreclosures.
BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: I propose a tax rebate of $35 billion.
JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: You have to have spending cuts.
FRED THOMPSON, (R) PRESIDENTIAL CANDIDATE: You got to put things like a stimulus package on the table.
(END VIDEO CLIP)
ROBERTS: We're asking the candidates on the "Most Politics in the Morning."
And, expensive tastes. How your mind plays tricks when it comes to the price of wine.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Ooh, I like that one.
(END VIDEO CLIP)
ROBERTS: On this AMERICAN MORNING.
The interesting thing about that is it's not the actual price of wine; it's the price they told you would cost. Welcome back to AMERICAN MORNING. It's Friday, the 18th of January. I'm John Roberts live in Columbia, South Carolina this morning.
CHETRY: Perception is reality. You know, the brain is a funny thing. And I'm Kiran Chetry here in New York.
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