Return to Transcripts main page
CNN Newsroom
Ford Announces Pressure on Your Wallet Hitting Production Lines; Big Oil Back on Hot Seat; GOP Finding It Hard to Recruit Minority Candidates
Aired May 22, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Ford announcing the pressure on your wallet is hitting its production lines. Ali Velshi tracking issue number one from New York. And this is not good when we hear Ford Motor Company with the kind of history that Ford has in this country.
ALI VELSHI, CNN, SENIOR BUSINESS CORRESPONDENT: Yes.
WHITFIELD: It really does kind of symbolize, you know, the American economy. It symbolizes so much.
VELSHI: It's our industry. It's our lifestyle. That's definitely exactly right.
WHITFIELD: Yes. It really is.
VELSHI: ... But so does this by the way, this barrel of oil and that's the price that it hit overnight, $135.09. $135, that's an increase in $5 over a 24-hour period. That's pretty remarkable. Now what Ford is saying and they're very clear about this. They are cutting production for the remainder of the year, about 15 percent of their production because customers have said that they don't want to buy the same kind of big cars, the same kind of fuel consuming cars.
WHITFIELD: Yes.
VELSHI: So, they're saying that they need to re-tool a little bit and they need to build more fuel efficient cars so this is exactly what we've thinking will happen when we keep having these record gas prices. $3.83 a gallon now, you know, for self serve unleaded. So, it's entirely connected. You see the airlines increasing fees because of fuel and now people are saying they're buying smaller cars. So, it's absolutely connected but what is happening here is that the high price of gasoline is changing the driving and lifestyle habits of Americans.
WHITFIELD: Right. And if Ford now, who next?
VELSHI: Well, they're all in trouble when we saw the numbers come out for sales, truck sales in April, it fell off a cliff compared to last year. People are buying more fuel efficient cars so there is one good - the piece of good news in here is the automakers can read the tea leaves and say let's start making a lot more in the way of fuel-efficient smaller vehicles. WHITFIELD: Wow. But that's kind of like in the long term still. It's going to take time to draw up those plans, get it going, get production. I mean, it almost sounds like a couple of years down the line before we are talking about an abundance of the hybrid vehicle.
VELSHI: I think you're absolutely right. But the point is that's what's going to have to happen. Here is the thing. When we start to see a break in oil price, if we, I have no reason to believe we would, but if we did we do see consumer habits changing in America. People say you know what maybe I will hang on to my gas guzzler for a little while. It's only going to be if we see these prices sustain for a while. People won't buy trucks. And as Tony pointed out earlier, they won't be able to sell theirs.
WHITFIELD: I think we are already there, too. They cannot sell and even if they want to get the few hybrids that are on the market.
VELSHI: Yes.
WHITFIELD: Ali Velshi, thanks so much.
TONY HARRIS, CNN ANCHOR: So Big Oil back on the hot seat today. Executives again defending record profits while you - while we pay record prices. CNN's Kate Bolduan on Capitol Hill.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN CORRESPONDENT (voice-over): More than $130 a barrel of oil. An average $3.80 for a gallon of gas. And the five executives of major oil companies summoned to Capitol Hill to answer for the record prices.
SEN. PATRICK LEAHY (D), JUDICIARY CHAIRMAN: $36 billion in three months. Certainly, more than the gross domestic product of some countries.
SEN. DIANE FEINSTEIN (D), CALIFORNIA: You rack up record profits for any corporation in the United States of America, quarter after quarter after quarter. And apparently have no ethical compass about the price of gasoline.
SEN. RICHARD DURBIN (D), ILLINOIS: Is there anybody here that has any concerns about what you are doing to this country?
J. STEPHEN SIMON, SENIOR V.P., EXXON MOBIL: We have a lot of concern about that. And we're doing all that we can to produce as much product as we can to put downward pressure on prices.
BOLDUAN: While Stephen Simon of Exxon Mobil acknowledged the big profits he said the company isn't driving up the high price of gas, it is the raw material, crude oil that's forcing up the price.
SIMON: There are so many factors that go in to establishing that price, supply and demand, weakness of the dollar, GOP, political situation, the amount of speculation coming into the market, the amount of spare capacity. BOLDUAN: The executives also point out they are plowing virtually all of their earnings into finding new U.S. energy supplies.
ROBERT MALONE, CHAIRMAN, BP AMERICA: Our investments across the entire energy spectrum are huge. The hard truth is even with major improvements in energy efficiency, the United States is going to need more oil, more coal, and more natural gas, and more nuclear in 2030 than it does today.
(END VIDEOTAPE)
HARRIS: And Kate Bolduan joins us from Capitol Hill. You know, there is a part of me, albeit a small part that feels a bit for these oil executives. I mean, we have to keep in mind, as we register all of this outrage, with pricing, this is still a business. I'm just wondering, Kate, what are we expecting to hear from these executives this morning?
BOLDUAN: It is a business. And I think that's something that definitely came out in the hearing yesterday, Tony. And we can expect to hear a little bit more today because the same five executives are going to be back on Capitol Hill but this time on the House side, on the House judiciary committee. Those executives, BP, Chevron, Phillips, Shell, and Exxon Mobil, they're going to be again, I mean, we're not reaching what you can say the hot seat. Because they are really hitting them with some hard questions. I mean, we can expect similar topics. Of course, we are talking about gas prices. And the congressmen are going to be asking them, you know, what are you doing to help this price of gas? And why is the price of gas so high? And we are also going to be looking is there any fault on the part of these oil companies when it comes to this gas price. But if you listened from the hearing yesterday, these oil executives, they say look, this price of crude, raw crude oil, this price, they say, is out of their hands. And that's what is at the center of driving up the price. So we can expect to hear possibly more fireworks today. Tony.
HARRIS: And it's out of my hands does not feel like an acceptable answer but I am curious to know more --
BOLDUAN: You can say that from the response of the congressman yesterday.
HARRIS: OK. Kate Bolduan for us on Capitol Hill. And as always, let me remind you to keep watching CNN, our money team, led by Ali Velshi. He has you covered on all of these issues affecting your wallet. Join us for a special report. It's called "Issue #1, the economy" today, noon Eastern, only on CNN.
WHITFIELD: All right. More now on that news just in from the presidential race. CNN confirms that Democrat Barack Obama has begun the search for a running mate. The veteran Democratic activist says that Obama has chosen the head of the search team of his search team, that is, former Fannie Mae CEO, Jim Johnson. Johnson will begin screening potential VP candidates. That news from the Barack Obama campaign. Meantime, guess who is coming to dinner this weekend. John McCain's guest list for a weekend cookout includes rumored running mate candidate Florida Governor Charlie Crist, Louisiana Governor Bobby Jindal and former Massachusetts Governor and presidential candidate Mitt Romney. The McCain camp says it is just a social gathering, by the way.
In the meantime, Democratic Hillary Clinton still in the fight. She is in Washington today after campaigning in Florida. She's still pushing to have votes from the Florida and Michigan primaries counted. And find out more on the candidates at cnnpolitics.com. Cnnpolitics.com is your source for everything political.
HARRIS: Staggering numbers in China. The death toll from last week's earthquake jumped by nearly 10,000 in a single day. Here is what we know. The government now says 51,151 people are confirmed dead. Almost 30,000 others are missing. The government is pleading for tents. Millions are homeless or their homes are unstable or unsafe. One sign of things getting back to normal. The Olympic torch relay resumed in China. It was on hold during three days of official mourning. The run is still being delayed in the Sichuan province where the quake hit.
WHITFIELD: And a message from Myanmar from U.N. Secretary General Ban Ki-Moon. He's visiting the nation weeks after a cyclone left more than 130,000 dead or missing. Ban told the Prime Minister the disaster is more than Myanmar can handle and the country needs more international help. Ban flew into the disaster zone, the remote Irrawaddy Delta. U.N. relief experts say millions of people are in desperate need of aid and many have not received any help at all. And of course, you can help at cnn.com. We have a special page on the devastation in China, and Myanmar. Plus, links to aid agencies that are organizing help for the region. It's a chance for you to impact your world.
HARRIS: Planning a summer getaway but finding it hard to get away from travel fees. We have a few alternate routes.
(COMMERCIAL BREAK)
HARRIS: Are you familiar with Gilroy, California? Middle of the state is my guess although let me run a quick Google. I don't want to get myself too far out on that limb right now. Santa Cruz mountains. As you can see, helicopters in the air right now. Trying to do some work on a fire there. Wildfires burning, more than 100 acres have been consumed since this fire started. Wow. 5:20 a.m. Pacific time. So, you see a lot of activity. This fire has clearly spread awfully quickly. The blaze is sending, as you can see, thick plumes of smoke into the air. A better location for you here. The fire is near highway 17, that's about ten miles west of Gilroy. We will continue to follow these pictures and not a aware of any structures taking a close look at the pictures now of any structures that have been damaged or destroyed that might be in the line of fire.
OK, some houses, I'm being told now, we will keep an eye on this. And our thanks to our affiliate there, KGO, for providing those pictures. And there is a structure. OK, obviously some structures in danger. Now, what was the big puff there just a moment ago? Oh, that's the fire. OK, that's the fire burning very close to that home. Again, northern California, wildfires burning there. We have been talking about extreme heat in that area. And the risk for fires, firefighters on the ground doing the best they can right now. We are going to just keep an eye on this situation.
WHITFIELD: It looks like they are cutting down fire lines to try to prevent -
HARRIS: Exactly.
WHITFIELD: To try to do whatever they can to keep that fire from growing -
HARRIS: Right.
WHITFIELD: From traveling, you know, past the fire line.
HARRIS: And finding more fuel on the other side of that line. All right, we will keep watching this.
WHITFIELD: It looks like a lot of fuel to the right of the screen.
HARRIS: Yes. And bring you more and better pictures as we get them right here in the NEWSROOM.
WHITFIELD: In the meantime, caring for China's babies. A policewoman gives the gift of life to the quake's smallest victim. CNN's Hugh Riminton has the report.
(BEGIN VIDEOTAPE)
HUGH RIMINTON, CNN CORRESPONDENT (voice-over): A mother and child. But she is not his mother and he is not her child. It is a life bond, however, born out of the China earthquake. 29-year-old policewoman Jiang Xiaojuan, the mother of a six-month-old boy, was called to emergency duty when the quake struck. She found in the chaos babies, screaming to be fed.
JIANG XIAOJUAN, POLICE OFFICER: I am breast-feeding so I can feed babies. I didn't think of it much. It is a mother's reaction, she says and a basic duty as a police officer to help. So she fed and fed. At one stage, feeding nine babies. Some of the moms were injured. Their fathers were dead, she says. Five of them were orphans. They have gone away to an orphanage now. She still feeds two including Zhao Zongjuan, the son of Jiang Xiaojuan.
ZHAO ZONGJUAN, EARTHQUAKE SURVIVOR (through translator): We walked out of the mountains for a long time. I hadn't eaten in days when I got here. And my milk was not enough. She saved my baby. I thank her so much. I can't express how I feel.
RIMINTON: Liu Hong is another mother whose breast milk stopped in the trauma of the earthquake. LIU HONG, EARTHQUAKE SURVIVOR (through translator): I'm so touched because she had her own baby. But she fed the disaster babies first. If she hadn't fed my son, he wouldn't have had enough to eat.
RIMINTON: Jiang Xiaojuan has become a celebrity followed now by local media, a front page hero proclaimed China's mother, number one. She is embarrassed by the fuss.
ZONGJUAN (through translator): I think what I did was normal, she says. In a quake zone, many people do things for others. This was a small thing, not worth mentioning.
RIMINTON (on-camera): On the most conservative figures, hundreds of thousands of children are now homeless, thousands have been injured, thousands more have lost at least one parent or are orphaned. Right across China, there's has been a huge outpouring of support from families who want to adopt those orphans. But that process takes time. And there are mouths to feed. Jiang misses her own son. He is being cared for through the emergency by in-laws in another town. But she is aware of the new connections she has made.
ZONGJUAN (through translator): I feel about these kids I fed, just as I feel about my own, she says. I have a special feeling for them. They are babies in a disaster.
RIMINTON: Hugh Riminton, CNN, Jiangyou, China.
(END VIDEOTAPE)
HARRIS: High water rescue in northern Idaho. A life saved in the NEWSROOM.
(COMMERCIAL BREAK)
WHITFIELD: Tough sell. Well, the GOP finding it hard to recruit minority candidates. CNN's Chris Lawrence has the story.
(BEGIN VIDEOTAPE)
CHRIS LAWRENCE, CNN CORRESPONDENT: The Republican Party is suffering a deficit of diversity. While dozens of African-American Democrats hold seats in Congress, the GOP is going on six years with no African-American governor or member of Congress.
JOE HICKS, FMR. LOS ANGELES CITY OFFICIAL: It's not, it's not a healthy party.
LAWRENCE: Republican and former Los Angeles city official Joe Hicks says the party is low on money and fighting to hold seats in Congress. To get competitive minority candidates the Republican brand would have to be strong enough to attract up and commerce.
HICKS: The party is not in that kind of position right now.
LAWRENCE: Especially since Republicans recently backed Pennsylvania's Lynn Swann and Ohio's Kent Blackwell, and both lost their bids for governor. Some Republicans say the party is not in any shape for any major outreach effort. Right now, it's just got to worry about winning races.
WALT ALLEN (R), COVIA CITY COUNCIL: I beg to differ. We need to deal with the minority recruitment effort now. We can't wait.
LAWRENCE: Suburban city councilman Walt Allen says look at Barack Obama who started at the local level 20 years ago. Allen says there are potential Republican Obamas out there but they need national help.
ALLEN: You need a good consultant. You need - you need to be credible. So endorsements help with that. You need money and all of that trickles down from the national to the local.
LAWRENCE: Joe Hicks says Republicans need to emphasize core values like low taxes instead of social issues like gay marriage.
HICKS: I think the party is drifting into areas that frankly has allowed itself not to be appealing to a 19-year-old who may be considering politics, may want to run somewhere down the road.
LAWRENCE: Everyone agrees there is no quick fix. And that even if Republicans start seriously cultivating minority candidates right now, you wouldn't see the effects on the big national races for another 10 to 15 years. Chris Lawrence, CNN, Los Angeles.
(END VIDEOTAPE)
HARRIS: Sixth grader perfect score, Fred, earns him a big check. Meet the national geography bee champion. And see if you are as smart as he is.
WHITFIELD: I already know I'm not.
(COMMERCIAL BREAK)
HARRIS: It's bouncing to the music a little bit. Man, OK. Let's - let's get a check of the big board, New York Stock Exchange right now inside the first hour of the trading day. OK, this is better news after two really bad sessions. 227 points bad yesterday. Close to 200 negative on Tuesday. We are up 43 in the first hour of the trading day. Sort of curious to know what is happening with shares of Ford this morning on the news that Ford will cut production by 15 percent in the second quarter, and 15 percent to 20 percent principally of SUVs and trucks.
If you want to be profitable in that industry, you would have to build the vehicles people want to drive. So, maybe this is good news. Ford announces --
WHITFIELD: Which means fuel efficient..
HARRIS: Cuts and yes perhaps that is the news that is driving the markets higher this morning. We'll check in with Susan Lisovicz in just a couple of minutes right here in the NEWSROOM. WHITFIELD: OK. So let's talk a little bit more about how high gas prices are pinching your wallet. Well, you know what other charges out there are also driving up your travel costs. Here now is Gerri Willis with tips to bring them down.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: If you're traveling this summer, higher costs are out there. And not just for fuel, here is how you can beat travel fees. First, make sure you travel light. Airlines are charging you $25 more if you bring a second bag with you. American Airlines is even going to charge you $15 for your first checked bag. And forget it if your luggage is overweight. If you have bags over 50 pounds, you may pay a penalty of $80 each way. Now to get around this, consider sending your weighty luggage by UPS or Fedex. You'll pay a lot less. And don't forget to book your tickets online. Today, if you book your flight over the phone or in person, you can pay up to $20 for the privilege and a warning for all those frequent flyers out there, if you cash in your miles less than three weeks in advance, you can be on the hook for fees up to $100.
And airlines aren't the only ones tacking on fees. Hotel fees are on the rise, too. Other charges are becoming more common, including baggage holding fees. Typically if you have to check out at noon, you'll be able to leave your bags at the hotel and the gratuity was optional. But now hotels are charging up to $5 for any luggage you leave. Plus automatic surcharges and gratuities are getting added to room rates. Usually that charges about $12 a day. Cancellation fees in resort amenity fees are also on the rise. Remember resort amenity fees are those cost the hotel passes along to consumers for access to the gym, tennis courts, or a pool. Even if you don't use these amenities you will still be stuck with the fee. To protect yourself ask about the total number of fees you will be charged when making reservations. Get the name of the person you're talking to and then get a written confirmation of the bill.
Finally, don't get stuck paying extra for your rental car. You may be asked if you want collision and damage insurance. But keep in mind that you are usually covered by your own credit card and insurance. Make sure you call your provider and find out. That could save you an extra $20 a day. Avoid gas fees by filling the car up before you return it. If you don't the rental company could fill it up and that may cost you $5 a gallon. Watch out for late return fees. Sometimes if you're more than an hour late, the rental company could charge you for a full day's rental. Your best bet to beat the rental fees, ask if the rental figure you are quoted includes fees, taxes, and surcharges. If you get lower rental rate, it may be worth your while to check out sites like hotwire or priceline.com.
And don't forget to watch "Open House," this Saturday 9:30 a.m. Eastern. We're looking at gas saving myths, trips for less and decorating on a budget.
HARRIS: Let's look at - OK. Let's take a look at some of the most clicked on videos here at cnn.com. School officials at a junior high school near Houston. Listen to this, confiscate kids' cell phones after nude images of two female students were forwarded to their classmates. We're talking about a junior high school here, Fred.
WHITFIELD: What's going on?
HARRIS: What is going on? Get more at cnn.com/mostpopular. Can't we all just get along? After all a rat, a cat, and a dog can.
WHITFIELD: Huh?
HARRIS: Yes. This little innovation here by California man is something that you really have to see it. Check it out again.
WHITFIELD: What you might see? Why? Why was that happening?
HARRIS: How about this? In Mexico, Fred, a donkey has been freed from a jail after three days for being an ass. It was caught kicking and biting two men and its owner had to foot the medical bills for those injured.
WHITFIELD: That's what they do.
HARRIS: That's what they do. Get this story and the others right now by logging on to cnn.com/mostpopular. I'm having way too much fun with this segment. And of course, don't forget you can download the CNN daily podcast right on your iPod.
WHITFIELD: And that's why it goes with the most popular, one click away.
HARRIS: That's right.
WHITFIELD: Oh, very intriguing. All right, intriguing too.
President Bush reviewing the troops. And assigning work to Congress. Iraq on the outline. We're at Fort Bragg.
(COMMERCIAL BREAK)
WHITFIELD: And welcome back to the NEWSROOM. I'm Fredricka Whitfield.
(WEATHER REPORT)
WHITFIELD: All right, the race for the white blue collar vote. It may come down to who can best imitate Clint Eastwood.
Here's CNN's Bill Schneider, part of the best political team on television.
(BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN'S SR. POLITICAL ANALYST (voice-over): Will white voters support Barack Obama? Yes and no. Kentucky Democratic voters were nearly 90 percent white. Obama got blown out in Kentucky by 35 points. Oregon Democrats were also overwhelmingly white. On the same day, Obama carried Oregon by 18 points. There is no such thing as a typical white voter. How Obama does depends on what voters we're talking about. There's continuing resistance to Obama among two types of white voters: Blue-collar whites and Appalachian whites. Why? He doesn't have big differences with Clinton on issues or ideology, but there are big differences of style and temperament. She comes across as a fighter.
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: We are in this race because we believe America is worth fighting for. This continues to be a tough fight. And I have fought it the only way I know how -- with determination, by never giving up and never giving in.
SCHNEIDER: Obama is running as a conciliator consensus builder.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: We should not just talk to our friends. We should be willing to engage our enemies as well. That's what diplomacy is all about.
SCHNEIDER: Democrats have had this problem before. With candidates who are not seen as tough guys. George McGovern, who was 1,000 percent behind his initial running mate. Michael Dukakis, in the tank. John Kerry, who was for the $87 billion before he was against it. Republicans believe they can exploit the same weakness in Obama.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Senator Obama, is naive enough to believe that if he sits across the table from Raul Castro, or from Ahmadinejad, that they will be able to quote, "work things out."
SCHNEIDER (on camera): The Clinton campaign tried to make Obama look weak. It's working but only with certain kinds of voters -- blue collar and Appalachian whites -- who want a more combative style of politics.
Republicans are trying the same thing. The Obama campaign is betting that voters are fed up with all of the fighting and want to try something different, for a change.
Bill Schneider, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: And of course, find more on the candidates at CNNpolitics.com.
CNNpolitics.com is your source for everything political.
HARRIS: Okay. Fingers crossed here, Fred. Are you as smart as a sixth grader? Probably not this one. Man, oh man. Go on. Just try to answer the National Geographic Bee's final question.
(BEGIN VIDEO CLIP)
ALEC TREBECK, HOST: Cochabamba is the third largest conurbation in what country? One of you is right. One of you is wrong. Hunter, you wrote down --
UNIDENTIFIED MALE: Honduras.
TREBECK: Akshay?
AKSHAY RAJAGOPAL, PARTICIPANT: Bolivia.
TREBECK: Bolivia.
Cochabamba is the third largest conurbation in the country of Bolivia. That means that Akshay is our champion.
(END VIDEO CLIP)
WHITFIELD: That is so cool.
HARRIS: What is the word? conurbation?
WHITFIELD: I don't know. I'm like, I would have failed that one because I didn't get any of the words.
HARRIS: I didn't understand the question.
Here is, the winner. Akshay Rajagopal, joins us from New York.
Young man, it is good to see you. You look good this morning. How do you feel?
RAJAGOPAL: Well, I feel very amazed at myself to be the winner of such a big event.
HARRIS: Can you quite believe that you're sitting here as the winner? You're the champion, you beat everyone else.
RAJAGOPAL: Yes, I can't believe I'm the winner because --.
HARRIS: Well, I have to ask you. Was it harder than you thought it would be? Or was it's easier than you thought it would be? As you hold the big check there.
RAJAGOPAL: I think it was easier than I thought it would be.
HARRIS: Don't, don't, don't tell me that.
Easier than you thought it would be?
RAJAGOPAL: Yes.
HARRIS: How is that? I mean, I couldn't understand that last question.
RAJAGOPAL: I did not know that Cochabamba was the third largest conurbation in Bolivia, but I knew that Cochabamba was in Bolivia.
HARRIS: I still don't know conurbation. I love it.
OK. So are you already preparing for your title defense? You know, you can rest on your laurels.
RAJAGOPAL: Next year I will be part of it.
HARRIS: You're amazing. How did you prepare for this competition?
How does one prepare for this kind of an event? What did you do?
RAJAGOPAL: I studied from a lot of DVDs. And I also studied from a book called, "Grolier's Plants and People."
HARRIS: Nice. How many hours?
RAJAGOPAL: On the weekdays, I just used whatever time I had after homework. And on the weekends, I'd average about 10 hours per day.
HARRIS: Are you kidding me?
RAJAGOPAL: Yes. That would mean 20 hours in a weekend.
HARRIS: 20 hours reading on the weekends? Alone?
RAJAGOPAL: Yes.
HARRIS: Well, no wonder you know what a conurbation is.
What's been the best part of all of this for you?
RAJAGOPAL: Well, I just like being challenged by the questions.
HARRIS: Man. So what do you do next? I mean look, you're the National Geographic Bee champion.
What is the next height for you to scale, here? What's the next challenge for you?
RAJAGOPAL: I think I might end up doing the science bowl.
HARRIS: That a boy. Any hobbies? I mean, come one, I mean all of this studying, do you have any hobbies?
What do you do for fun?
RAJAGOPAL: For fun, I do coin collecting, chess and video games.
HARRIS: Video games. What's your favorite video game right now? And what's your gaming system?
You've got the Xbox. What's the other one, Fred? The Playstation?
What's your gaming system and what's your favorite game? RAJAGOPAL: My favorite game is the Grand Tourismo 4 and Grand Tourismo 3 on Playstation 2.
HARRIS: Terrific. Hey, it's good to meet you. Congratulations on all your success.
RAJAGOPAL: Thank you.
HARRIS: You've done a fabulous job. And the best to your parents, too. A little credit to your parents here as well.
Nice to meet you, young man.
RAJAGOPAL: Pleasure meeting you.
WHITFIELD: Oh, I am so inspired. So smart. Such a cutie pie, too.
All right. Well, just like that bunny, fuel prices keep going and going and going. Drivers in Congress ask why.
(COMMERCIAL BREAK)
WHITFIELD: Inside the sect. Remember that story? Are there any more children still at the polygamist ranch in Texas? Well, the state says yes. Sect members say no. And amazingly, CNN has been allowed to enter the ranch and get closer to the temple than ever before.
CNN's David Mattingly reports.
(BEGIN VIDEOTAPE)
DAVID MATTINGLY, CNN CORRESPONDENT: Hours after they turned away Texas officials in search of more children, outrage returned to the polygamist sect in West Texas.
WILLIE JESSOP, FLDS SPOKESMAN: They're going to have to bring in a search warrant and their military tanks and their snipers.
MATTINGLY: But to show they have nothing to hide, FLDS spokesman Willie Jessop opened the gates to media for the closest look inside yet.
"Keeping Them Honest," we went along, wondering if we would see what the state was looking for, more children at the compound. Instead, the first stop was an empty school.
Have there been any children in here at all since the raid?
JESSOP: I think there's been a few broken-hearted mothers try to gather up their children's homework.
MATTINGLY: These could be classrooms from anywhere, if it weren't for the face of the sect's prophet, Warren Jeffs, looking at you at every turn.
On three separate walls in this room are pictures of Warren Jeffs at the rear. There's one at the front, and one over on the side.
I asked Jessop, how far would the sect be willing to distance itself from its fallen leader, now in prison as an accomplice to rape, for sanctioning marriage of an underage girl?
JESSOP: How do you renounce Jesus and then still say you're a Christian? It's what the state is trying to force us to do. And I will tell it over the board, it will never happen. You can't call yourself a Mormon and renounce Joseph Smith, any more than you can call yourself FLDS and renounce the prophet Uncle Warren. You can't do it.
MATTINGLY: To get their children back, their loyalty to Jeffs is apparently the line FLDS members will not cross.
But the raid on the compound has clearly taken its toll.
You look around, the place just feels desolate. There's really not very many signs of life. You see some automobiles parked here and there, but, really, very little human activity at all.
Unlike our previous visit, this time the FLDS did not offer any residents for us to talk to. We saw no children. There were no women to question about forced marriages of underage girls.
But there was one extraordinary moment. This is the closest outsiders have been allowed to the multimillion-dollar temple since police broke in and took away stacks of records for a criminal investigation.
Up this close, that building looks absolutely massive. You really don't get a feel for how big it is until you're standing on the ground here next to it. Just look at how big this stone wall is, and it goes all the way around that huge temple.
But like much of the community around it, the temple is silent, a reminder of the night allegations of abuse came crashing down on this once very private sect.
David Mattingly, CNN, Eldorado, Texas.
(END VIDEOTAPE)
(BUSINESS HEADLINES)
WHITFIELD: All right, the hard edge of war.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Two months ago this park wasn't a playground; it was an assassination place.
(END VIDEO CLIP)
WHITFIELD: Savoring life again in Basra.
(COMMERCIAL BREAK)
HARRIS: Let's take you to North Carolina right now, Ft. Bragg. President Bush there. Just moments ago. He had an opportunity to visit with the 82nd Airborne and some of the paratroopers obviously, and soldiers as well.
He's going to be making remarks at 11:00 a.m. And after those remarks, we understand the president will actually take a look at the living conditions for the soldiers there and visit some of the barracks that have been so much in the news and so much discussed over the last few weeks.
You'll recall there was a video posted on YouTube, showing the conditions of the barracks there at Ft. Bragg. The estimation of just about everyone, the conditions were deplorable. And there was a promise from everyone in the top brass, from the Army vice chief of staff in particular, General Dick Cody, that there would be repairs made. The president to visit those barracks after his comments this morning.
We'll bring those comments to you, right here in the NEWSROOM.
WHITFIELD: It has taken time but Iraq's second largest city appears safe for now. Radical Shiite militias no longer controlling Basra.
CNN's Arwa Damon reports.
(BEGIN VIDEOTAPE)
ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Two months ago, this park wasn't a playground, it was an assassination place. Today Ila (ph) is here with his young family.
It is the first time in two years that we come here, he tells us. His wife is shy, but she does feel safer. At one of the markets nearby we hear the same thing from Ohmi-mad (ph), out her 9-year-old daughter, Nor (ph). She says that when the militias controlled Basra, Nor (ph) was scared to even go to school. Nor (ph) pipes up saying, the Iraqi army her comfortable.
And is everywhere, some 30,000 troops and police, man countless checkpoints across the city. In other parts of town, once militia strongholds, the signs of fighting are unavoidable. That and the stench of sewage are Basra's defining characteristics. What's new, is that it's people are back on the streets. British troops are back in the city as advisers and the militia are nowhere to be seen. Instead, we're mobbed by children. At a tea stand in a nicer part of town, Udaye (ph), says things have changed.
UNIDENTIFIED MALE (through translator): Everything used to be bad in these streets. After about 6:00 or 7:00 in the evening, people would go home. They couldn't go out.
DAMON (on camera): When the city was under the control of the militia, places like this were completely shut down. Simply because there was no business. But now, as you can see, they're getting ready for the evening crowd.
(voice-over): After the intense heat of the day, strollers wander Basra's famed korneeshigan (ph). In Iraq's second city, the night no longer brings death, but signs of life.
Arwa Damon, CNN. Basra, Iraq.
(END VIDEOTAPE)
HARRIS: President Bush in North Carolina this morning -- Ft. Bragg. Visiting the 82nd airborne. The president just going through some thank yous right now. We will take a quick break and come back with the president's comments in just a moment.
You are in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Good morning again, everyone.
You are informed with CNN. I'm Tony Harris.
WHITFIELD: And I'm Fredricka Whitfield.
HARRIS: Elements keep coming into the CNN NEWSROOM on this Thursday, the 22 day of May.
Here's what on the rundown.
WHITFIELD: Wildfire erupting with a furry today in California's Santa Cruz mountains. Several homes in danger right now.
HARRIS: Gas guzzlers stalled. Ford will slash pickup and SUV production due to soaring fuel prices and plunging sales.
WHITFIELD: And presidential candidates begin looking around for number two. Let the VP derby begins in the NEWSROOM.
HARRIS: Let's get to California. It is a breaking story that we're following this hour. Strong winds are fanning a fast-moving wildfire in the Santa Cruz mountains in northern California. Fire officials say the blaze has now spread to about 500 acres. It was just 100 acres ten minutes ago, 20 minutes ago?
WHITFIELD: Yes, I was going to say less than 30.
HARRIS: Yes.
Multiple homes threatened. And the strong winds are making firefighting difficult. The blaze broke out just before dawn this morning in the mountain range about ten miles west of Gilroy.
We will continue to follow the story and bring you the latest. I think we're working to get some folks in firefighting, on the phone to bring us the very latest on this story.
WHITFIELD: Well let's check in with Rob Marciano.
Rob, you know it has been extremely hot in northern California the past two days. But now, the problem is wind. So the winds toppled -- coupled with all of that dryness, this is not good. Fuels the fire.
