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"New York Times" Questions John McCain's Ties to Lobbyist; Navy Shoots Down Dying Satellite; President Bush Wraps up Africa Trip
Aired February 21, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. I'm Heidi Collins.
TONY HARRIS, CNN ANCHOR: And I'm Tony Harris. Stay informed all day with the CNN NEWSROOM.
Here's what's on the rundown. John McCain fighting back, calling "The New York Times" report a smear campaign. Was his relationship with a Washington lobbyist out of bounds?
COLLINS: The stage is set for the next Texas two-step. Barack Obama and Hillary Clinton in a CNN debate tonight.
HARRIS: A falling satellite filled with toxic fuel goes boom. Mission accomplished today, Thursday, February 21st.
You're in the CNN NEWSROOM.
A hit-and-run smear campaign. That's how John McCain's advisers describe the report questioning his ties to a lobbyist eight years ago. Just a short time ago, McCain along with his wife, responded to "The New York Times" article. The paper says McCain's aides were worried in 1999 about appearances of a close relationship with a female lobbyist, the paper says. And they were concerned it would undermine his record on ethics reform. McCain denies the story.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: I'm very disappointed in "The New York Times" piece. It's not true.
(END VIDEO CLIP)
HARRIS: Lobbyist Vicki Iseman represented clients with business before McCain's senate committee. The "Times" said aides confronted the senator and Iseman. McCain says they never confronted him. Both McCain and Iseman deny she received any special treatment and say they never had a romantic relationship.
Dana Bash is on the story for us this morning. She's live in Toledo, Ohio, where Senator McCain held his news conference last hour.
Dana, great to see you. The piece in "The New York Times" cites advisers, staff members, a former campaign adviser, two former associates and a top McCain aide. That's the sourcing on the story. DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: That's right. And John McCain insists that he doesn't know who those sources are because, as you just reported, McCain stood here right behind me. You know, he said he was going to move on. You can see behind me he already has. But he stood right behind me and talked to us for about 15 minutes and insisted that nobody in his campaign ever told him that they thought that his relationship with Ms. Iseman was a problem and that he didn't think that it was a problem because he insisted, one, that he didn't have any kind of romantic relationship with her as the "New York Times" suggested and he also insisted that, yes, they are friends but he said under questioning that he doesn't have more of a friendship with her than other lobbyists who he knows and has known in Washington.
He also insisted, I think perhaps most importantly here in terms of McCain campaign and the whole premise and theme of the McCain campaign, which is reforming Washington, he insists that he did not use his influence on the senate Commerce Committee, in which he had a senior position, to help Ms. Iseman or, more importantly, her clients.
(BEGIN VIDEO CLIP)
J. MCCAIN: At no time have I ever done anything that would betray the public trust or make a decision which in any way would not be in the public interest and it would favor anyone or any organization. As chairman of the Commerce Committee, there were hundreds of issues, including many telecommunication issues that came before the committee.
I had to make decisions on those issues and I made those decisions. Sometimes they were agreed with, sometimes they were not. But any observer will attest to the fact that I made those decisions on the basis of what I thought was in the best interest of the American citizen.
CINDY MCCAIN, WIFE OF JOHN MCCAIN: Obviously, I'm very disappointed in "The New York Times" and, more importantly, my children and I not only trust my husband but know that he would never do anything to not only disappoint our family but disappoint the people of America. He -- he's a man of great character and I'm very, very disappointed in "The New York Times."
(END VIDEO CLIP)
BASH: Disappointed is definitely the buzzword coming out of the McCain campaign, especially from Senator McCain and his wife Cindy as you just heard there. Tony, Senator McCain admitted that he's disappointed not just in "The New York Times" but disappointed because he understands this is a potential problem for him, regardless of how much he says the content of the story is false.
He gets it, that his campaign over and over again, wherever he goes, wherever he campaigns, he says he's going to change Washington. That is the whole reason for his campaign. And by having it out there that, whether it's true or not, he understands that he sort of did the opposite in Washington, that's problematic for him and he knows that. HARRIS: Absolutely. And Dana, you know, maybe folks care about whether or not there was a relationship, a personal relationship or whether there was an affair or not, but there was a critical issue before this committee, the senate committee that John McCain was chairing at the time, stationed groups around the country wanted the ability to own more than one station in any particular market.
And that was a critical question. And those stations, groups, were represented by Vicki Iseman in many cases. To the critical question of whether the chairman of that committee would side with those stations, groups, the answer ultimately, ultimately was yes.
BASH: Right. I mean, when Senator McCain insisted here today, what his campaign has released to us last night, was documentation and a couple of letters that were referred to in "The New York Times," letters to the FCC where he presses for a decision. Now, what Senator McCain says, insists, is that he was pressing for a decision and he didn't care which way the FCC would decide, whether the decision would favor Vicki Iseman and her client, a station in Pittsburgh, or whether they wouldn't.
He was trying to make the case that, as chairman of the committee, he just wanted a decision. Here he said that a former FCC chairman said he did nothing wrong. Back then the current FCC chairman was not very happy with that kind of pressure being put on him from a very important person like Senator McCain.
So, there are two sides to that story. You know, that's why Senator McCain's campaign is trying to put out that letter, to try to say, you know, I didn't really do anything wrong. It really is interesting, that is obviously a core issue. And the other issue is, you know, what's going on with some of these former aides and who are these former aides who say that they actually confronted John McCain.
In this story, Tony, you saw it, they said they were so upset about, concerned about what potential problems that they confronted John McCain. I asked Senator McCain about this, and a couple of other reporters did as well, he said that simply did not happen. That he didn't know about any kind of concern on the senate staff, in his campaign staff, his presidential campaign at the time eight years ago.
But we do know, I spoke with John Weaver, one of his former top strategist, who confirmed on the record to the "New York Times" and confirmed to me afterwards as well that he did, in fact, confronted, meet with Vicki Iseman because from his perspective, he said that he was hearing around town, in his words, that she was telling people that she was getting things from John McCain because of her relationship with him and she -- he told her basically stay away.
HARRIS: More work obviously to do on this story. Dana Bash for us this morning. Appreciate it. Thank you.
COLLINS: Deep in the heart of Texas. That's where the democratic presidential candidates are campaigning today. And it's where the face off tonight in a CNN debate. Barack Obama trying to keep the momentum going after 10 straight primaries and caucus wins. He leads in the overall delegate count.
Both he and Hillary Clinton are criss-crossing the state ahead of the March 4th primary. Clinton is counting on Texas and Ohio to get back on the game. She is banking her support from the largest Hispanic population in Texas, to help her win.
The democratic battles for Texas could turn on the Latino vote. So both Hillary Clinton and Barack Obama are working hard to win it. CNN's Gary Tuchman reports.
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN CORRESPONDENT: On a street corner in San Antonio, Texas, a small confrontation from some of the most sought after and fought after voters in the nation.
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: And together we will begin the next great chapter in American history, starting with those three words, si, se, puede. Si, se, puede.
SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Si, se, puede. That's right. Yes, we can.
TUCHMAN: Hillary Clinton and Barack Obama are desperately seeking the Latino vote. In a state that could propel Clinton back into contention or give Obama a sense of nomination inevitability.
OBAMA: How's it go, San Antonio?
CLINTON: I can't think of any better place to start our campaign for Texas than right here in El Paso!
OBAMA: I'm glad to be in the lone star state.
CLINTON: A I lived here in San Antonio for three months. It's where I became addicted to Mexican food and mango ice cream!
TUCHMAN: The polls show the Texas primary is now too close to call. There are about eight-and-a-half million Latinos in the state of Texas. There are more Latinos here than there are entire populations in 39 other states.
Roughly 36 percent of Texas residents are of Latino heritage, mostly Mexicans. So Obama and Clinton are now in the mists of a whirlwind Texas-Latino campaign stops. Polls show immigration is an important issue.
CLINTON: We are going to give people a path to citizenship because so many of the people who are here work hard, send their children to school, and deserve a chance at the American dream.
TUCHMAN: But Iraq, the economy, and education also dominate concerns.
OBAMA: I want every child to learn a second language, everybody. Not just Spanish-speaking people learning a second language. All of us need to learn a second language.
TUCHMAN: Both candidates have Spanish language commercials. This radio ad for Obama. This TV ad for Clinton. Hillary Clinton has done well nationally with the Latino vote.
UNIDENTIFIED FEMALE: We believe in her. We believe in what she stands for.
TUCHMAN: But Barack Obama won the majority of Latinos in Connecticut. And most recently, Virginia.
UNIDENTIFIED FEMALE: I'm going to vote for Obama now. I was undecided.
TUCHMAN: The stakes are high, so expect to see Obama and Clinton spending a lot more time with Latinos in Texas, even those who may not be ready to vote just yet.
(END VIDEOTAPE)
COLLINS: Obama-Clinton head to head and face to face tonight. Don't miss the democratic presidential debate hosted by CNN along with Univision. Campbell Brown moderates our live coverage from Austin, Texas, beginning at 8:00 Eastern, 5:00 Pacific only on CNN, your home for politics.
HARRIS: And developing this hour -- 6.3 magnitude earthquake in Nevada. Our severe weather expert Rob Marciano tells us the quake was relatively shallow. It struck about six miles deep in northeast Nevada near the Nevada-Utah line.
And the U.S. Geological Survey reports the quake hit at 6:16 local time. The Elco County under sheriff said there are unconfirmed reports of some damaged buildings. The quake was felt across eastern Nevada, Utah and as far away as southern California.
COLLINS: Snowed under, you go to feel for people in upstate New York right now. An overnight storm has left the town of Pulaski buried. Some places got three or four feet of snow.
(BEGIN VIDEO CLIP)
ALAN WOODS, PULASKI, N.Y. RESIDENT: The search going over the top of the snow blower. It just takes forever because you've got to go over things two, three, four times. So you want to stay at it better than that. So, I should have been out here earlier.
(END VIDEO CLIP)
COLLINS: A bit of a break expected today in Pulaski. I'm told. No more snow for now.
HARRIS: Pulaski.
COLLINS: Do you know who told me that, this guy over here, Rob Marciano. HARRIS: All the stuff he knows, smart guy.
ROB MARCIANO, AMS METEOROLOGIST: And then I had second thoughts.
COLLINS: I don't know. Somebody from Pulaski, give us a call.
MARCIANO: I like to throw them both out there.
COLLINS: I don't want to argue. So, that's the safe way to do it, yes.
MARCIANO: I want to talk about this earthquake a little bit. Here it is, guys, at northeast Nevada. You know, pretty unpopulated area but it's right along i-80. So, Wells, I mean, there's just some towns here. and I talked to my source at the U.S.G.S.. He said they had 59 reports in just about 20 minutes ago, 59 reports of people who felt it in over 40 zip codes. He thinks at least two million people felt this thing. But 150 miles from Salt Lake and maybe about the same for Boise.
This is an area that had -- the earth kind of, crust kind of stretches. Kind of wants to split apart. So even though this seems unusual, according to U.S.G.S, it's not entirely unusual for that part of the world. All right. More on that as we get the details in.
Other details of this developing story, some severe weather potentially across parts of the southeast corner of Texas, southern Louisiana and southern Mississippi as well. We have tornado watch in effect for 11:00 Central time. We haven't had any tornado warnings pop up but it has certainly had become more active, especially on the eastern part of this watch box, namely from New Orleans south across the mouth of the Mississippi and to Tibito (ph) and even south of Baton Rouge. So, we'll watch that area carefully.
Another area we're watching very carefully is Joplin, Missouri which had reports of hail and freezing rain and sleet. And Springfield sees some icing with a four degree temperature. We have a live picture for you, or near live picture of St. Louis, which is getting some snow. You'll get some freezing rain a little bit later.
Also an i-report, I want to talk more about the eclipse last night. If you were lucky enough to get a glimpse, my goodness, it was something spectacular. This is this from Hedi Enghelberg down there in Florida. She said she just got herself a telescope and new camera and she took these pictures out of Hollywood, California -- Hollywood, Florida, I believe.
COLLINS: I don't think that's how you spell Heidi. I'm just guessing. Sorry, go ahead.
MARCIANO: Hey, listen. You spell it your way, she spells it hers. Did you see the eclipse, Heidi?
COLLINS: You know, I was skiing, remember?
MARCIANO: Well, you can't look up? COLLINS: No. Not when I'm skiing. I'm too busy getting yelled at by the ski patrol to slow down.
MARCIANO: I know how it is. It's good to have you back. Tony, I don't want to ask. That I-report is for Tony because you said you were going to stay up.
COLLINS: Did you?
HARRIS: I passed out.
COLLINS: Oh. I'm glad for Hedi.
MARCIANO: That's why you shouldn't drink. You missed important celestial events like the eclipse.
COLLINS: All right. Thank you, Rob. Appreciate it.
MARCIANO: Sure.
COLLINS: Latino voters, the key to Texas. The Clinton and Obama campaigns are making their case.
(COMMERCIAL BREAK)
HARRIS: All right. The tussle for Texas voters. Democrats Hillary Clinton and Barack Obama battling out ahead of the March 4th primary. Senior political analyst Bill Schneider in Austin again with some of the new poll numbers.
Bill, good to see you. What are Texans saying about - well, I guess we should get to the numbers first.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: OK. The numbers are all tied up. Clinton and Obama among democrats in Texas, Clinton 50, Obama 48. That's easily within the margin of error. That's got to be a disappointment for Senator Clinton because throughout the campaign until very recently, she was running ahead of Senator Obama here in Texas but now it looks like the race is too close to call, Tony.
HARRIS: and Bill, how would Clinton or Obama stack up in a race against republican John McCain?
SCHNEIDER: Well, Texas is a base republican state. If Texas doesn't vote for the republican nominee, the republican nominee is really in serious trouble. And sure enough, McCain does beat both Clinton and Obama. But not by huge margins. It is standoff between John McCain and Hillary Clinton. It's John McCain 55, Clinton 42. McCain leads by 13 points.
But notice this, in a race between John McCain and Barack Obama, McCain's lead is a little bit narrower here in Texas. It's eight points. So Obama can argue, and he may well argue in tonight's debate, that he would be a stronger candidate in Texas than Hillary Clinton. At least that's what this poll suggests. HARRIS: Sure does. All right. Senior political analyst, Bill Schneider at the site of tonight's debate. Bill, good to see you. Thank you.
COLLINS: Hillary Clinton says she still has it. Barack Obama believes he's got it now. Candidates looking for Latinos' love and their votes in next month's Texas primaries. Let's hear from both campaigns. Maria Cardona is an adviser to Hillary Clinton and Federico Pena. He is the national co-chairman of the Obama campaign.
Thanks to the both of you for being here today.
MARIA CARDONA, ADVISOR TO HILLARY CLINTON: Thank you.
FEDERICO PENA, NATIONAL CO-CHAIRMAN, OBAMA CAMPAIGN: Thank you.
COLLINS: Mr. Secretary, I want to begin with you, the Latino voting bloc has always been considered Clinton territory if you will. Listen with me to radio show host Luis Jimenez for just a moment.
(BEGIN VIDEO CLIP)
LUIS JIMENEZ, RADIO TALK SHOW HOST: He may be the best guy in the world, but we just met. It's not racism. It's who we know and who we trust more.
(END VIDEO CLIP)
COLLINS: How confident are you that Senator Obama can win over the Latin vote?
PENA: Well, we're doing it. First of all, we won the Latino vote in Connecticut. We won the Latino vote in Virginia. We won it in the state of Illinois. We did very well in Colorado. And by the way, we won the Latino vote in Iowa which is the very first state to vote. It has a very small population of four percent. But this is the challenge. The Clinton name is a brand name that has been very familiar in the Hispanic community for 15 years.
And Barack Obama is not as well-known. But what we have learned is that when Barack has an opportunity to speak directly to the Hispanic opportunity he wins people over. And that's exactly what we are seeing today with the national polls, which show that among Hispanics, nationally today, both Barack Obama and Hillary Clinton are basically tied in support among Latinos. So, every day we're making advances. Every day people are it getting to know him. His four-day trip in Texas is helping a lot.
COLLINS: Well, Maria, I'm sure you have something to say about that. Let's also look at the numbers at the same time. Look at this now. Senator Obama has certainly made some progress. Comparing Latino votes on super Tuesday with votes in the Virginia primary. Just one week later, you can see numbers there. Sixty-three percent for Clinton on super Tuesday and then down to 46 percent by the time Virginia came around. What is the Clinton campaign actually doing to retain this Latino vote? CARDONA: I don't think we need to regain it because I think we are still very much ahead in terms of Latino support. I should point out that the numbers out of Virginia were done in an exit poll of 100 Latinos. So, I don't really know think that paints the whole picture.
COLLLINS: I actually said retain. How do you keep the ones that you have?
CARDONA: Oh, we will absolutely keep the ones that we have because Senator Clinton is continuing to talk about her commitment, her long shared history with the community, which is why they feel more comfortable with her, which is why I think they feel more that they would prosper under her presidency, which is the same way that they did under Bill Clinton's presidency. Millions of Latinos prospered immensely under the Bill Clinton's presidency including by the way your two guests tonight, today. And I believe that Latinos understand and want what they would get under Hillary Clinton's presidency.
COLLINS: All right. Let's talk about that for a minute. Obviously, we have the debate tonight. Secretary Pena, what are the issues? What do they most want to hear from these candidates tonight, for Latinos?
PENA: What happened to Latino families around the country are wage power has gone down, people have lost their jobs, they can't get health care, they're very worried about their future. They're having trouble sending their kids to college because of high rising costs. And there are questions on immigration. So, what the senator is going to talk about is his commitment to education. He has a strong policy on that.
His commitment to reduced health care costs for Latinos, to strengthen the economy, to increase the minimum wage. Every year inflation and, of course, do comprehensive reform immigration. So, these are the bread and butter issues that are very important to the Latino community. And that's why in Texas we're doing well and we expect to do well when the election occurs.
COLLINS: Maria, do you agree with that assessment?
CARDONA: I do agree that those are the key issues for Latinos. You know, over a third of Latinos don't have health care. We believe that Senator Clinton's plan that covers everybody is a plan under which Latinos would prosper immensely. Again, education is a very key issue. We understand that without good schools our children will not have successful futures.
That's why most Latinos come to this country to give their children a better life. We believe that Hillary Clinton will continue communicating that very strong message to Latinos and that we will continue to have the majority of their support.
COLLINS: There was something else that was interesting that was said by the same talk show host, Luis Jimenez, Latino -- otherwise known as Latino Howard Stern. Let's go ahead and listen to one more sound bite of this and I want to get your reaction on the back side.
(BEGIN VIDEO CLIP)
JIMENEZ: He's going to do more for the African-American community and he may forget about us. I'm not saying that's the truth but that's the way a lot of us think.
(END VIDEO CLIP)
COLLINS: Well, any -- any truth to that? Secretary Pena, go ahead.
PENA: Well, let me say, that is old-time thinking. That is old- time thinking. I'm very disappointed with the gentleman who made that comment. The fact is we have had a number of African-American mayors all across this country who is supported by the Hispanic community and those mayors have been very supportive of the Hispanic community, whether it's Mayor Tom Bradley in Los Angeles, Harold Washington in Chicago, Wellington Webb in Denver, across the country. So, that's old-time thinking. Look, if you're going to be a president or a governor or a mayor, you got to represent everybody. And that's why Latinos...
COLLINS: And you know that.
PENA: ... beginning to support Barack Obama every day and that's why we're beginning to win in some of these states as people get to know him better.
COLLINS: As a former mayor yourself, well said. Maria, I don't know. What do you think about that?
CARDONA: I think - I think Secretary Pena is right. I don't think that Latino support for Hillary Clinton is based on anything other than their comfort level with her, their long history with her and the fact that they understand that she has a huge command over the key issues that they care about.
I think they don't really know Senator Obama. They don't understand what he would do for the key issues that are important to at Latinos. They know what Senator Clinton will do and that's why they will support her.
COLLINS: Well, we appreciate that insight from both of you and of course, we will be watching very, very closely on CNN tonight this debate that's going to take place. Maria Cardona with the Clinton campaign and Federico Pena with the Obama campaign.
CARDONA: Thank you.
PENA: Thank you very much.
HARRIS: Let's take you to New York stock exchange. About close to an hour into the trading day. And as you can see, the Dow off to a nice start, up 34 points in the first hour of trading. We will get all of the market news on this morning with Susan Lisovicz throughout the morning and the day right here in the CNN NEWSROOM.
All right. Home heating bills giving you the chills? Could be. High pump prices putting the brakes on your driving. Help is here. Our Gerri Willis has some money-saving energy tips.
Gerri, good morning. Good to see you.
GERRI WILLIS, CNN, PERSONAL FINANCE EDITOR: Hey, good to see you.
HARRIS: I got to ask you right off the bat here. What is the outlook now for oil and gas prices?
WILLIS: Well, you know they're high. That's where they're going now. Oil at above 100 bucks a barrel. And it could get worse. Oil may keep rising to levels that could reach -- could reach, this is what some analysts say, 150 bucks a barrel.
HARRIS: Whoa!
WILLIS: Yes, this is could. You know, we all know that gas prices are on the rise. The average now three bucks. Now, the government is saying the gas prices could go to $3.40 or more by spring. Now, that sounds like a lot of bad news, right? But some analysts out there say, hey, you know what, this is not the beginning of a new normal.
Oil prices were returned to stable levels in three months to 15 months. And they say gas prices do have a ceiling of about 350. When they get that high they will definitely retreat in the second half of the year. That is according to the sources we're talking to because I don't forecast oil and gas prices.
HARRIS: Good for you.
WILLIS: As you know.
HARRIS: Yes, absolutely. You know, I'm curious. All right. That sort of covers the outlook when it comes to folks, you know, all of us, most of us who drive, and need to get around. What about the people and a lot of folks who heat their homes with oil? What's the outlook for those folks?
WILLIS: Well, yes. This has been painful this winter if you heat your house with oil like I do. And even if you're in a relatively new home, just five to ten years old, you may not have enough insulation. Look, one of the cheapest and most effective ways to cut down your heating bills is to add insulation.
You want to find the "R" value. That is the critical phrase, "R" that described how well insulated your house is and how well it keeps heat inside the house. See how much more insulation you might need by going to energystar.gov, great Web site, or you can go to simplyinsulate.com. You can find insulation, of course, at your local home improvement store.
HARRIS: Where can you get help if you can't afford your heating bills.
WILLIS: We got some great stuff here. OK. If you have trouble making payments on your heating bill, contact your local utility company first. They may be able to work out a payment plan with you. And don't forget, most states have a moratorium so utility companies can't shut off your service during the winter.
There's also a federal program that's available for the elderly and people on low incomes. It's called li-heat. To see if you qualify, call the National Energy Assistance referral project. Their phone number, write it down 1-866-674-6327.
And look if you don't qualify for that, check out something that's called the National Fuel Fund at nationalfuelfund.org and see if there are any local fuel funds that can help you out. Often other organizations, charitable organizations like Salvation Army, Catholic charities, they help folks out who are having problems paying this bills. Bottom line, there are ways to get that bill paid out there.
HARRIS: Yes, and Gerri, any - I don't know, any good tips on cutting your gas bill?
WILLIS: Well, you know, maintain the car, maintain the car, maintain the car. You know, it's all about maintaining the car. Check your tire pressure. Under inflated tires are a big problem. You can save a couple of cents a gallon by using the exact oil recommended for your car. Check it in the owner's manual. And then, of course, make sure your engine is properly tuned. Because if it's not, it costs you.
HARRIS: Absolutely. Gerri, what's coming up on the big "Open House" show this weekend?
WILLIS: Well, you want to join us at 9:30 a.m. Saturday morning, right here on CNN. And we're going to talk about foreclosures that are flooding the market. You know, women folks are snapping these up and getting a bargain by buying them. Then, renovations have paid off big time. We'll show you how to maximize the value of your home. Join us, Saturday morning and if you can't get up early, you know what to do, right, Tony?
HARRIS: Absolutely. Yes, we can catch it later in the day on HEADLINE NEWS.
WILLIS: At 3:30 p.m. Saturday and Sunday.
HARRIS: I'm with you. All right. There she is, CNN's personal finance editor, Gerri Willis. Gerri, great to see you, thanks.
WILLIS: My pleasure.
COLLINS: He'll spin to the news cycle. How will it come out in the wash? Well, John McCain fires back about favoring a lobbyist.
(COMMERCIAL BREAK)
HARRIS: And welcome back, everyone, to the CNN NEWSROOM.
I'm Tony Harris.
COLLINS: Hi there, everybody. I'm Heidi Collins.
The John McCain camp calls it a smear campaign. And just last hour, McCain, with his wife by his side, responded to a newspaper report questioning his ties to a lobbyist eight years ago.
"The New York Times" says McCain aides were worried that appearances of a close relationship with a female lobbyist would undermine his record on fundraising and ethics reform. McCain says he has never done anything to betray the public trust and he's disappointed in The Times article.
(BEGIN VIDEO CLIP)
J. MCCAIN: All of it is "anonymous sources," "former aides." You know, the staff of the Commerce Committee was around 100 to 150 staffers, as I recall. I've had -- it was one of the largest staffs of any committee. So "former aides and former staffers" could certainly encompass a large number of people.
(END VIDEO CLIP)
COLLINS: The lobbyist, Vicki Iseman, represented clients with business before McCain's Senate committee. The Times says aides confronted the senator and Iseman. McCain says they did not. Both McCain and Iseman deny she received any special treatment and they both say there was no romantic relationship.
HARRIS: Let's go deeper into this story now. Howard Kurtz of "The Washington Post" and CNN's "RELIABLE SOURCES" is in Washington.
Howard, good to see you.
"The New York Times" coming under some attack this morning from John McCain himself, reporting the story through unnamed sources. The question is, should this story have been reported in this way? We also should mention that "The Washington Post" is also tracking the story as well.
HOWARD KURTZ, "THE WASHINGTON POST": Yes, and published a story this morning that was -- we had also been working on. The Times obviously had a lot more. Look, unnamed sources are controversial in journalism. They've been used since Watergate. There is one named source in this piece...
HARRIS: Yes.
KURTZ: ... on a key allegation. That is John Weaver, longtime adviser to the senator who left in a campaign shake-up last summer. He says that he helped arrange a meeting with this lobbyist, Vicki Iseman, in which a top McCain aide basically told her to stay away from the senator because of concern. Again, he says that the relationship, whatever it was -- and we don't know exactly what the relationship was -- looked bad.
But otherwise, the story does rely on two former associates, and obviously when you put a controversial, disputed story out there about a presidential candidate without names attached to those making the charges, you often invite the kind of criticism that "The New York Times" is receiving this morning.
HARRIS: Does it feel to you like a legitimate story to follow, given John McCain's stance on campaign finance and trying to issue all appearances of unwarranted influence? Does it feel like a story that deserves to be reported?
KURTZ: Well, much of the lobbying part of the story actually was reported eight or nine years ago. But, look, because McCain is a self-anointed crusader against special interests and money -- excessive money in politics and that sort of thing, it is certainly legitimate to look into letters that he wrote to federal officials on behalf of clients, or that would benefit the clients of this lobbyist, Vicki Iseman. But, look, you know, watching cable TV over the last 12 hours, people aren't debating the letters to the FCC.
HARRIS: Yes.
KURTZ: They're talking about, was there an affair? And both parties, as you mentioned, John McCain and Vicki Iseman, say there was no romantic relationship. And "The New York Times" can't really contradict that except to say that aides to the senator's last campaign, at least some of them, eight years ago, were worried about the appearance of a close bond between these two people.
HARRIS: Well, how good a job does "The New York Times" do, "The Washington Post," as well, I should also mention, in getting at what many feel is the heart of the story as to whether or not this woman, Vicki Iseman, had access, and more than access, unwarranted sort of influence with John McCain as to an important issue that was before his committee at the time eight years ago, nine years ago?
KURTZ: It's a carefully-worded story. At the same time, it makes clear that -- and McCain said this morning that Vicki Iseman is a friend of his...
HARRIS: Yes.
KURTZ: ... that they flew together on a plane once, that he would see her at functions. So, you know, if it was any other member of Congress, I would say, you know, writing a few letters to federal regulatory agencies, this happens, fairly or unfairly, all the time. With John McCain though, I think it is fair for journalists to hold him to a higher standard because he holds himself to a higher standard as the chief proponent of campaign finance reform, and this sort of thing. In fact, the plane ride he took on one occasion with Vicki Iseman is now against federal ethics rules. That's a change that McCain helped push.
HARRIS: Yes. Is it fair to say that a lot of stories, a lot of important stories, may not, in fact, be told, if not through unnamed sources? And the McCain story -- and we can debate whether or not it's an important story -- but in the McCain story, sources, advisers, staff members, a former campaign adviser, two former associates, a top McCain aide, and as you mentioned, John Weaver -- is it fair to say that important stories -- again, we can debate this one -- might not in fact be told if not through the willingness of unnamed sources to speak for the record?
KURTZ: Look, I think that unnamed sources are way overused and abused in journalism. But when you are talking about breaking a story, as "The New York Times" did, for example, on the secret Bush administration eavesdropping program, or "The Washington Post" story on secret CIA prisons overseas, you can't write those kind of investigative stories if everybody has to have their name attached.
In this particular instance, you're asking people who are confidantes of Senator McCain to talk about some very sensitive matters. But look, a story is always more vulnerable to criticism and counterattack if you are making charges, or allowing people to make charges, acting as a conduit for those people, without their names attached. That's why I think the story is carefully written, but therefore it's fair for you and everybody else to say, well, what has The Times really got here that it's nailed down beyond dispute?
HARRIS: Yes.
Howard Kurtz of "The Washington Post" and CNN's "RELIABLE SOURCES."
Howard, great to see you. Thanks.
KURTZ: Thank you.
COLLINS: Mission accomplished. A U.S. Navy missile shoots down a dying spy satellite, and on the first try.
Our senior Pentagon correspondent, Jamie McIntyre, covered a briefing on the shootdown this morning.
I'm not sure if that's the technical term, but what is the military saying now, Jamie, about this event?
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: "Shootdown" is good, especially since it did shoot the satellite down.
COLLINS: OK. Yes.
MCINTYRE: You know, the Pentagon is being cautious about declaring this a total success, but by all accounts, everything went off exactly as planned. That standard missile fired from an Aegis cruiser, fired 10:26 p.m. last night, took only three minutes to rendezvous in an orbit with the satellite.
There was a head-on collision, 22,000 miles per hour between the kill vehicle and the satellite. And the satellite, by all accounts, was pulverized.
COLLINS: Cool.
MCINTYRE: Now, they were aiming for the fuel tank, and they believe they scored a direct hit.
COLLINS: Yes.
MCINTYRE: Here's the vice chairman of the Joint Chiefs, General James Cartwright.
(BEGIN VIDEO CLIP)
GENERAL JAMES CARTWRIGHT, JOIN CHIEFS VICE CHAIRMAN: We have a bunch of techies that are trying to work their way through the data. They want something that they can really be absolutely sure of before they will come to that conclusion.
No one of the pieces of data that we have thus far is enough to be conclusive. We have a high degree of confidence based on the imagery that we have and the destruction pattern that the missile impacted the satellite in the area of the tank.
(END VIDEO CLIP)
MCINTYRE: Now, why do they think the fuel tank was hit? And, of course, that was the objective, was to destroy that thousand pounds of hydrazine fuel.
One, they saw an explosion, they believe, that would only be accounted for by hitting the fuel portion of the satellite. Also, they detected a vapor trail. In addition, after the satellite was hit they saw more than 80 separate fields of debris, which really indicates that the satellite is in thousands of tiny pieces.
Now, so far, none of those pieces have fallen to Earth. They say most of them have burned up in the atmosphere because they were so small. They're still watching to see if any debris makes it to the ground. They think it's highly unlikely that any of that would pose a hazard to anyone. So it looks like this was a total success, but they're going to take another day or two to analyze the data and make sure that they're not coming to a false conclusion.
Yes. Boy, when you see that video, it really gives you a good idea of how accurate these missiles and these types of weapons, if you will, can be, which is a good thing, obviously.
CNN Pentagon Correspondent Jamie McIntyre. Thanks, Jamie.
MCINYTRE: You're quite welcome.
HARRIS: A final destination. President and Mrs. Bush wrapping up their Africa trip in a country founded by America's freed slaves.
(COMMERCIAL BREAK)
HARRIS: A final destination. President Bush caps his tour of Africa in Liberia, a country founded by freed American slaves and torn by war. Our Ed Henry live from Monrovia.
Ed, good to see you. What is the president saying about his experience?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, Tony, he's ending his African tour here in Liberia because, as you noted, there is that close bond between these two nations. And Mr. Bush vowed to keep that bond alive by doing all he can to help Africa's first female president, Ellen Johnson-Sirleaf, try to pull her country back together after a really devastating 14-year civil war here, as you know.
I can tell you, the roads here, homes, just in tatters, ripped to pieces. And so the U.S. is providing millions in construction aid. It's also helping to retrain the army here, get the Liberian armed forces back on their feet to deal with the possibility of insurgents, the potential for coup attempts.
There are a lot of potential problems out there they want to deal with. And Mr. Bush also said today that the U.S. will now be providing one million textbooks, a textbook for every schoolchild here in Liberia.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: You know, one of the things I've learned, and I suspect the people of Liberia have learned, it's easier to tear a country down than it is to rebuild a country. And the people of this good country must understand the United States will stand with you as you rebuild your country.
(END VIDEO CLIP)
HENRY: Now, the president also vowed to keep up the fight against deadly diseases like malaria and HIV/AIDS. That's what's made him so popular all along the way here. And that's why he's enjoyed himself on each stop.
In fact, today he did a little bit of dancing, along with some local dancers. Dare I say he was boogying a little bit. That's because he is enjoying himself. This gives him a chance to make the case that his legacy should not just be about the Iraq war. It should also be about some of the good works he's done in Africa -- Tony.
HARRIS: I love it! He was behind the table. Look at -- getting his swerve on, dare I say. Sorry. Let me clean it up. This is CNN. I apologize.
HENRY: Well, Tony, they tell me to be careful because in the fields behind me, there are these snakes that will kill you within 15 minutes. So you need to be careful. I might be doing a dance like that in a minute, too. So, you know, I've got to be careful.
HARRIS: Oh, that's good stuff. It's good to see the president having some fun. All right. What a trip for the president. What a trip for Ed Henry. Ed, thank you. COLLINS: I'm looking for snakes in that field behind him. It's not snakes, but a yard swarming with fleas and rats. The neighbors have had it.
(BEGIN VIDEO CLIP)
LESLIE LARSON, NEIGHBOR: He went to set up the lawnmower, and rats took off from underneath my lawnmower. And they went towards their yard.
(END VIDEO CLIP)
COLLINS: Yummy. Flea flicker -- in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Residents move out, fleas and rats take over. Have your way with the joint. A neighborhood nightmare in Florida. Details now from Tariq Minor of affiliate WKMG.
(BEGIN VIDEOTAPE)
LARSON: ... into the back, came back out. Walked into my house, and I was covered from head to toe with fleas. The fleas would have come from the lawn and the rats. They used to have dogs that they didn't take care of.
TARIQ MINOR, REPORTER, WKMG (voice over): The fleas are feeding on a plethora of fallen fruit from orange trees in the back yard of this abandoned home. But the insects aren't the only inhabitants concerning neighbors. Rats are also running the show.
LARSON: He went to start up the lawnmower, and rats took off from underneath my lawnmower. And they went towards their yard.
LEE LOPEZ, DELTONA, FLORIDA, CITY SPOKESMAN: We did what we could, which is we went out to the house. We looked at it. We didn't see any violations. And like I said, because there wasn't really anything that we needed to notify the owner about, we haven't done any type of a search to find out who the owner is.
MINOR: Code enforcement officers say the homeowners are not violating laws by having excessive fleas and rats in their back yard. They say Leslie Larson will have to fight them on her own.
LARSON: I think the city should fine these people for abandoning their house.
(END VIDEOTAPE)
HARRIS: You know, city officials say there are no obvious health concerns and advise neighbors to take steps to protect their yards.
COLLINS: My favorite story of the day.
Texas tussle -- Obama and Clinton face to face for the CNN debate tonight. Can she trip him up?
(COMMERCIAL BREAK)
COLLINS: The credit crunch has started to claim some corporate victims now. Yesterday it was Sharper Image filing for bankruptcy. So who's next? Susan Lisovicz is at the New York Stock Exchange with some answers to that question.
Good morning to you, Susan.
SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Hi, Heidi. Well, I'm going to state the obvious here by saying that this is not a great time in retail. And it's even worse if you work for or you run a company that is struggling in retail.
You know that credit crunch we've been talking about for so long not only affects consumers, it affects companies as well. And so easy access to credit is dried up. Not only did Sharper Image file for bankruptcy yesterday, Lillian Vernon, a catalog company, did as well. And other companies that have filed in recent months include Bombay -- that's a furniture company; (INAUDIBLE) filed this month; Levitz Furniture, which is a store well known in this area.
"The Wall Street Journal" says that video rental chain Blockbuster heads the list of companies at risk for violating their loan agreement. And that list is longer than it was a year ago. The Journal also says that companies already in bankruptcy are having trouble merging. Why is that? They can't find financing. So it's a vicious circle, Heidi.
COLLINS: Yes, obviously. How does this affect us though? I mean, it doesn't sound good.
LISOVICZ: Well, you know, it's not like the U.S. has any shortage of retail. There's plenty of retail analysts that say there's too many stores to begin with in the U.S. But when a store fails, when it closes, well, it affects people. And people are laid off.
A recent survey from Mercer Consulting shows a third of companies it surveyed -- now, this is not in retail specifically, but just in general -- may freeze hiring or downsize. Mercer says if you loose a job, if you are unlucky enough to lose a job, it may also take longer to find another one.
We did get a report out before the opening bell that showed the weekly jobless claims fell last week. So that is good news. And here on Wall Street, well, it's kind of tentative trading, at most. We did get a rally yesterday in spite of the higher oil prices.
We do have a bright spot to tell you about today -- tech stocks. Blackberry maker Research in Motion, its shares are up 10 percent. It raised its forecast, citing demand overseas and strong sales of its smart phone over the holidays. And, well, a lot of us, well, we consume Blackberry products like crackberry, right?
HARRIS: Crackberry.
LISOVICZ: Right, Tony? I hear you there.
COLLINS: Yes.
(STOCK MARKET REPORT)
LISOVICZ: Back to you guys.
COLLINS: OK. Very good. Yes, you didn't get any e-mails from me because I was on vacation and my Blackberry went down.
HARRIS: Oh!
LISOVICZ: Welcome back, Heidi.
COLLINS: Hey, I was almost losing my mind.
LISOVICZ: We missed you though.
COLLINS: Thank you, Susan. We'll check back later. Thanks.
HARRIS: Well, a trip to the store for groceries results in a special delivery for one New Yorker. Sucker punched -- in the NEWSROOM.
(COMMERCIAL BREAK)
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