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American Morning
Clinton Suspends Campaign; McCain and Obama's Past Battle Looms in Race; Accused 9/11 Terrorists Arraigned; Continental Airlines Cuts Fleet; Ed McMahon Faces Foreclosure; General Election Begins for McCain and Obama
Aired June 05, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: And if you look the newspapers obviously, out of New York today, it's all the big news here. "New York Daily News," OK, I'll quit. What does the "New York Press" say to that?
SUZANNE MALVEAUX, CNN POLITICAL CORRESPONDENT: This is kicking and screaming. I don't know if that's overstated slightly. Kicking and screaming that she ends her quest for the presidency or press (ph) I guess they used to say at the "New York Post."
ROBERTS: But no question there was some pressure brought to bear on her.
MALVEAUX: Absolutely.
ROBERTS: To say, you know, for the sake of party unity it's time to hang this thing up.
MALVEAUX: Absolutely. And mostly it comes from the New York Congressional delegation. It was a very difficult decision for her to make. And yesterday she had a series of meetings and conference calls. And finally they came out and said, look, we've got to roll out these endorsements. We have to make this happen.
There was basically a group that said, OK, let's give her some time. But we heard from Congressman Charlie Rangel who said, look, I'm going to be there for you until the very end, but the end is now. The end already happened. I'm confused. When do we wrap this thing up?
ROBERTS: Right.
MALVEAUX: And so, what we're going to see today is the New York Congressional delegation. They're going to endorse Barack Obama on the steps of the Capitol, the U.S. Capitol. Tomorrow we're going to see the New York governor out here in full force talking about how he's endorsing Obama. And then Saturday, she's going to have this big speech that she's going to make essentially saying that she's casting her support for him.
ROBERTS: You know, there have been some reports, "Politico.com" is carrying a report saying that she was pleading with people for more time. Do you know why because you've covered this campaign?
It must be -- it must have been difficult for her to let go. It's been so long and so much effort put into it.
MALVEAUX: Well, she keeps saying -- she keeps talking about those 18 million voters. I mean, that was really, really tough to let go of. And she really -- I mean, it was so, so --
ROBERTS: But when you say 18 million voters, he got just about the same amount.
MALVEAUX: Well, it was so, so close. It was really difficult for her to realize that the game was over. And a lot of people kept saying you don't have any other alternatives. There are no other options here. But she felt that she earned this and she wanted to satisfy voters.
There are a lot of people who still feel that they've been disrespected, that they haven't been treated well, and they want the Obama camp to reach out to them.
ROBERTS: Well, we'll see how well she can reach out to her voters to make sure that they don't defect to John McCain. That's going to be a big task.
Suzanne Malveaux, great to see you this morning. Thanks.
MALVEAUX: Thanks, John.
ROBERTS: Kyra?
KYRA PHILLIPS, CNN ANCHOR: Barack Obama is considering a challenge this morning from presumptive Republican nominee John McCain. Take a listen.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESUMPTIVE PRES. NOMINEE: As you know, I said earlier that I sent a letter to Senator Obama, and my campaign manager is contacting his campaign manager asking for an invitation and a request for 10 debates, one a week leading up to the Democrat convention.
(END VIDEO CLIP)
PHILLIPS: McCain trails Obama in the first national poll since Obama became the presumptive Democratic nominee. According to a CBS poll, 48 percent of the voters are for Obama. Forty-two percent are for McCain.
Now, John McCain and Barack Obama have a history of mixing it up since Obama came to the Senate just three years ago. CNN's Ed Henry is live at the White House with a preview of what we can expect in the general election -- Ed.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Kyra. That's right. Senators McCain and Obama are the last two men standing in this ring, but you're right, their sharp differences were first exposed two years ago when they started exchanging blows on Capitol Hill. And that could give us a taste of what's ahead.
(BEGIN VIDEOTAPE)
HENRY (voice-over): The shadowboxing was playful, but it came after a nasty spat between these two Senate heavyweights over ethics reform. In February 2006, Barack Obama fired off a letter suggesting John McCain was slow walking reform by pushing a task force to mull the issue.
SEN. BARACK OBAMA (D), PRESUMPTIVE PRES. NOMINEE: We don't need a study. We need action.
HENRY: That infuriated reformer McCain who did not like a lecture from a freshman. McCain flashed his anger writing, "I'm embarrassed to admit I failed to interpret your previous assurances as typical rhetorical gloss routinely used in politics to make self- interested partisan posturing appear more noble. I hold no hard feelings about your earlier disingenuousness."
SEN. JOHN MCCAIN (R), ARIZONA: I don't believe that there was any venom. I think it was a straight talk.
HENRY: Obama said a cranky McCain had overreacted, but the two men laughed it off a couple days later.
OBAMA: I'm particularly pleased to be sharing this panel with my pen pal John McCain.
MCCAIN: Senator Obama and I are moving on and will continue to work together, and I value his input.
HENRY: But now, they're sparring again over who can shake up Washington, and it's getting testy.
MCCAIN: He hasn't been willing to make the tough calls, to bring real change to Washington. I have.
OBAMA: I respect his many accomplishments, even if he chooses to deny mine.
(END VIDEOTAPE)
HENRY: Now a ban on gifts for lawmakers and more lobbying disclosure did pass last year. Obama claimed some credit by voting for this. McCain actually in the end voted against that bill because he thought it didn't go far enough. And what's interesting is that McCain allies portray this fight from two years ago as a sign that maybe Obama was not ready for prime time, that it took someone like McCain, a veteran legislator, to get this done.
On the other hand, the Obama allies say, look, McCain basically lost his temper during this debate two years ago and it took the cold demeanor of Obama to actually push this legislation through. So you can see already that's the exact kind of debate we're going to hear in the months ahead, Kyra.
PHILLIPS: OK. Ed Henry live from the White House, thanks.
And coming up at 7:25 Eastern, we're going to talk to McCain supporter and former Republican candidate Mitt Romney -- John.
ROBERTS: It's five minutes after the hour. The accused mastermind of the September 11th attacks and four other al-Qaeda suspects will face charges today in a military court in Guantanamo Bay, Cuba.
Our justice correspondent Kelli Arena is there this morning for us at Camp Justice. Good morning, Kelli.
KELLI ARENA, JUSTICE CORRESPONDENT: Good morning, John. This is all going to play out in a very high security courthouse, which is not far from where I'm standing. I'm just not allowed to show it to you for security reasons.
All five of those defendants will be in that courthouse this morning. They are all accused of playing a critical role in the September 11th attacks, and if convicted, they could all face the death penalty.
(BEGIN VIDEOTAPE)
ARENA (voice-over): Six and a half years after the September 11th attacks, the day of reckoning has finally dawned. Among the accused, alleged mastermind, Khalid Sheikh Mohammed, Ramzi Binalshibh (ph), accused of helping with logistics, and alleged al-Qaeda moneyman, Mustafa al-Hawsawi (ph), accused of sending thousands of dollars to the hijackers.
The Pentagon wants them executed but promises a fair trial saying the rules are similar to those facing U.S. service members accused of crimes.
BRIG. GEN. THOMAS HARTMANN, COMMISSIONS LEGAL ADVISER: This is an amazingly fair process. It's unprecedented in the history of warfare, the kinds of protections that we are providing in this cases that are very similar to what we provide to people who wear this uniform.
ARENA: But there's one big difference. If they're found not guilty, defense attorneys are pretty sure their clients will not walk free.
MAJOR JON JACKSON, DEFENSE ATTORNEY: I think that if he wins, meaning he gets a full acquittal, he stays at Guantanamo Bay.
ARENA: Major Jon Jackson represents al-Hawsawi (ph), and says the notion of a fair trial for his client is fantasy.
JACKSON: Everything has been slanted in favor of prosecuting this gentleman from admitting hearsay evidence to admitting coerced statements, to not having the right to remain silent.
ARENA: Capt. Prescott Prince represents Khalid Sheikh Mohammed. CAPT. PRESCOTT PRINCE, DEFENSE ATTORNEY: And I'm not trying to impugn anyone's integrity, but the rules do not allow a full and fair hearing at this time.
ARENA: In this courtroom, the government may introduce statements the defendants made after being harshly interrogated, some say tortured.
In civilian courts, that kind of evidence is not allowed. The Pentagon's response -- tell it to the judge.
HARTMANN: If you believe that coercion automatically means unreliable, present your argument to the judge. The court is the crucible truth. It's an engine of justice. You get to present all the facts, all the evidence, all the law before an independent judge.
(END VIDEOTAPE)
ARENA: Military defense lawyers actually tried to get this arraignment postponed, arguing that they just haven't had enough time to meet with their clients while the government has had access to them for years. Obviously, John, that request was denied.
ROBERTS: Kelli, an intriguing aspect of this case is that these defendants were held in secret CIA prisons for years. They've been down there in Guantanamo Bay, Cuba.
ARENA: Right.
ROBERTS: And when they walk into the courtroom today, it's going to be the first time that they've set eyes on each other.
ARENA: That's right. The first time that they'll ever make a public appearance as well. So we can report about what they look like, but who knows what's going to happen in that courtroom today, John. I mean, nobody knows what to expect.
Arraignments are usually very routine, as you know. You know, you're in, you're out. You read the charges, you plea, you're out of there. We have no idea what's going to happen today.
ROBERTS: All right. We'll be looking forward to your coverage of it. Kelli Arena for us this morning at Camp Justice in Guantanamo Bay, Cuba. Kelli, thanks.
PHILLIPS: And new this morning, four more aftershocks shake southwest China as engineers hope a dam can hold back 56 billion gallons of water. The largest measured at 5.3 and shook the ground as engineers hope that a lake created by the original quake would start to drain.
Two hundred thousand people were told to leave in case the dam overflows. The official death toll from the 7.9 magnitude quake on May 12th is now at more than 69,000 people.
Well, the race for the Democratic nomination is over, but the race for vice president is just heating up. So who might Obama be considering? We're going to take a look at the options.
ROBERTS: A hit with the kids and with the young at heart. How Nintendo's Wii and other video game gadgets are helping people bounce back. We've got that story coming up for you.
Coming up on AMERICAN MORNING, Beverly Hills broke.
(BEGIN VIDEO CLIP)
ED MCMAHON, HOST, "THE TONIGHT SHOW": Here's Johnny!
(END VIDEO CLIP)
ROBERTS: Why the curtain could be falling on a Hollywood star's dream home.
(BEGIN VIDEO CLIP)
ROBERT PITTS, REAL ESTATE BROKER: Foreclosures happen to everyone.
(END VIDEO CLIP)
ROBERTS: How Ed McMahon got caught up in the mortgage meltdown. Ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
PHILLIPS: All right, check this out. It's the ultimate economy ride. Riding on just three wheels and built completely on plastic. Aerodynamic vehicle created by Steve Fambro gets an amazing 230 miles per gallon. Mileage that you could get cross country on just one tank of gas.
(BEGIN VIDEO CLIP)
STEVE FAMBRO, ENGINEER: Once you realize and accept the fact that at highway speeds most of the energy goes just to push the air out of the way, why would you make a car that's square and boxy and like a piece of furniture?
(END VIDEO CLIP)
PHILLIPS: And they also have an electric version of the car. Fambro says that folks are already putting in their orders.
ROBERTS: Very stylish too. Imagine driving that to work.
(CROSSTALK)
PHILLIPS: You should see the afterburners go off.
ROBERTS: Twelve minutes after the hour now. Ali is here with more breaking news about the airlines. You talked about United --
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes, this is brand new.
(CROSSTALK)
ROBERTS: Minutes ago announced a massive --
VELSHI: This just happened moments ago. In fact, our business desk is on right now with Continental getting the details. Continental Airlines is announcing that it is cutting out 67 planes from its fleet and eliminating 3,000 jobs. It will reduce its capacity by 11 percent.
Now, this follows right on the heels. About 24 hours ago, United announced something similar taking out 100 planes, reducing staff by 1,500. Also, blaming fuel, taking out some of their planes that they say are less fuel efficient.
Now, we do not have details yet. We are working on the details of what planes Continental is taking out of service. At United, it's their 737s and their 747s.
Now, we've seen the 747 with four engines being replaced over the years. Many of those 747s are going to cargo now, but the 737 is the most popular commercial plane in the history of aviation.
ROBERTS: And it's Continental's workhorse.
VELSHI: And it is Continental's workhorse. They have, by the way, as a lot of the other airlines, have moved to many more planes made by Airbus. Continental has really had more Boeing planes over the years. So this is an issue.
We don't know what planes Continental is taking out right now, but the issue is and continues to be fuel. The airlines have passed on these fuel charges one after another. We've got 12 of them this year so far. We're on track at this pace for 40 or more of them, and it's still not helping the airlines.
So we'll get details on this and bring this right back to you, but now cuts at Continental, 3,000 jobs, 67 aircrafts, 11 percent of its capacity.
ROBERTS: Wow.
PHILLIPS: Well, cars and airplanes are seeing it.
VELSHI: That's right.
PHILLIPS: GM and now --
VELSHI: That's right.
PHILLIPS: Well, the race for the Democratic presidential nomination is over, but the race for the number two spot is just getting started. A look at the front-runners and who will help Barack Obama. ROBERTS: And roofs peeled back like tin cans. Storms cause heavy damage. Where? Just outside of Washington, D.C. And where is the heavy weather today? We'll have that for you.
PHILLIPS: Maybe Jacqui Jeras.
(COMMERCIAL BREAK)
JACQUI JERAS, AMS METEOROLOGIST: Extreme weather this morning. Storms causing creeks and rivers to swell across southwest Ohio, Indiana, and Kentucky. The water here moving quickly in Adams County, Ohio, spilling onto the streets. The storms left more than 86,000 people without power for a time.
And another storm system causing major damage in Virginia. The storm tossing cars, peeling off roofs, and plowing through walls just outside of Washington. Three people were reported dead in the storms across the Midwest and Mid-Atlantic states yesterday.
Good morning, everyone. Welcome back to AMERICAN MORNING. I'm CNN meteorologist Jacqui Jeras.
And more extreme weather expected today, this time in the nation's heartland. Yes, today could be one of those unusually strong storm systems developing causing a major tornado outbreak we think late this afternoon and tonight. That red highlighted area that you can see, that's what we call a moderate risk area for tornadoes. That includes you in Minneapolis, Sioux Falls, Des Moines, Omaha, Kansas City and Wichita, Kansas.
What does that mean, a moderate risk? It means there's going to be a great concentration of severe storms, 30 or more reports of one- inch plus hail, six to 19 tornadoes possible, or numerous wind events that cause damage, winds more than 60 miles per hour. And we think we could easily see both of those today.
Severe weather at this hour really focusing across southern parts of Wisconsin. We've had nasty storms moving through the Madison area, just west of Milwaukee. Watch out Milwaukee. About an hour from now the wicked weather moves into your neighborhood.
And then we have a severe thunderstorm watch that was just issued for these storms developing in eastern Colorado. They're pushing up to the north and the east, and we expect them to be some big hail makers.
On top of that, incredible rainfall has already come down in parts of Iowa while the rain comes down at this hour. We've got reports of more than seven inches of rain in Creston, Iowa.
And talk about some heat. That's the big story in the southeast. Boy, we could certainly use some rain here. There you can see the heat advisories.
It's going to be feeling like 104 to 108 degrees this afternoon. Raleigh-Durham, we're looking at triple digits before the week is out. And you want to talk about uncomfortable conditions, well, look at where we're starting this morning; 77 in Atlanta, 81 in Mobile. And, guys, those are the low temperatures that we're talking about for today.
PHILLIPS: Hit the beach. That's what I say.
JERAS: Not much else you can do when the heat is like that.
PHILLIPS: I always like going to the beach.
ROBERTS: Jacqui, thanks so much.
Barack Obama officially kicks off his campaign today. John McCain already sharpening his attacks. Mitt Romney joins us live on the debate over experience and why he thinks that McCain is better for the Middle East than Barack Obama.
ATIKA SHUBERT, CNN JERUSALEM CORRESPONDENT: I'm Atika Shubert in Jerusalem.
Obama's win has been greeted with fanfare from Japan to Kenya, but not here in Israel. Many people here are worried about his promise of policy change, especially negotiations with Iran. Coming up on AMERICAN MORNING.
ROBERTS: Coming up on AMERICAN MORNING, Beverly Hills broke.
(BEGIN VIDEO CLIP)
ED MCMAHON, HOST, "THE TONIGHT SHOW": Here's Johnny!
(END VIDEO CLIP)
ROBERTS: Why the curtain could be falling on a Hollywood star's dream home.
(BEGIN VIDEO CLIP)
ROBERT PITTS, REAL ESTATE BROKER: Foreclosures happen to everyone.
(END VIDEO CLIP)
ROBERTS: How Ed McMahon got caught up in the mortgage meltdown. Ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
PHILLIPS: Now, the mortgage meltdown is hitting home for Ed McMahon. He could lose his multimillion dollar mansion in Beverly Hills. Brooke Anderson has more on the story.
(BEGIN VIDEOTAPE)
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW") ED MCMAHON, HOST, "THE TONIGHT SHOW": Here's Johnny!
(END VIDEO CLIP)
BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT (voice-over): His famous lead-in to Johnny Carson made Ed McMahon a household name. But fame doesn't make him immune to the mortgage problems plaguing countless Americans.
The 85-year-old entertainer who also hosted "Star Search" is fighting possible foreclosure on his posh Beverly Hills home.
ROBERT PITTS, REAL ESTATE BROKER: Let's face it, he is a normal person. Foreclosures happen to everyone. You just get behind, and you just -- you know, it's a snowball effect.
ANDERSON: McMahon fell more than $643,000 behind on a $4.8 million loan from Countrywide, according to a notice of default filed in March. His publicist wouldn't talk finances but did tell CNN McMahon broke his neck in a fall a year and a half ago and hasn't worked since. That the potential loss of his house is due to "a perfect storm of bad events, bad economy, bad housing market, and bad health."
McMahon has owned the property since the early '90s. Five years ago he won a multimillion lawsuit against his home insurance company for the spread of toxic mold throughout the home. The house has been on and off the market for the past two years. The latest listing price, $6.25 million.
Beverly Hills mortgage broker, Steven Kosen, says McMahon can still save his home.
STEVEN KOSEN, THE MORTGAGE HOUSE, INC: The bank is not going to want the foreclosure to happen. They want their money. And if they can reinstate the account and bring the mortgage current, then it will be as it was.
ANDERSON: Through his publicist, McMahon says, "Many good, hardworking Americans are going through the same thing, and my heart goes out to them."
Brooke Anderson, CNN, Los Angeles.
(END VIDEOTAPE)
PHILLIPS: And a programming note, Ed McMahon and his wife will be on "LARRY KING LIVE" tonight at 9:00 p.m. Eastern.
More on Ed McMahon's mansion in your "AM Extra." It was built in 1989 and has been on the market now for two years. It's described as a Mediterranean estate with foreign imported doors, a master suite with his and her baths, and views of Mulholland Drive.
ROBERTS: It's 24 minutes after the hour.
Mitt Romney just minutes away. A man who fiercely debated John McCain talks about calling out Obama to the town hall.
And Barack Obama naming his VP search committee. Find out who's on it, and a look at who he might pick, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: The battle for the White House is now officially on, and Barack Obama and John McCain have their attention fully focused on each other. Governor Mitt Romney is one of McCain's former opponents, now a staunch supporter. He joins us this morning from Arlington, Virginia.
Governor, it's good to see you. What do you think of Barack Obama's historic win on Tuesday evening?
MITT ROMNEY (R), FMR. PRESIDENTIAL CANDIDATE: Well, you certainly have to congratulate him. I must admit I was one of those who didn't think anyone could beat Hillary Clinton on the Democratic side, and he made it happen, and you tip your hat and say nice job.
ROBERTS: So now, the race is on. What is the McCain campaign going to do to try to define Barack Obama?
ROMNEY: Well, I think Barack Obama is increasingly well-defined in the minds of the American voters. They see him as a very charming person. They also see him as somebody who has appealed very strong to the most left wing of his party. And they see him as someone who is very inexperienced and whose judgment they question.
That's why I think in the last 13 primaries with Hillary Clinton he lost seven. So I think he's got some real challenges within the voting public.
ROBERTS: Do you think the fact that she finished fairly strongly might present some problems for him going forward?
ROMNEY: Yes, I think there are a lot of people who like Barack Obama and find him to be well-spoken and a handsome man, but just don't think that he's ready to lead the strongest nation on the planet. They're concerned about his experience in foreign affairs, particularly as it relates to the Middle East. They're concerned about the fact that he hasn't been there in two years.
These are the kinds of things I think that are causing people to say, you know, nice fellow, but not a person who should be leading America at a time when our economy is so fragile and when our concerns around the world are such an elevated nature.
ROBERTS: Let me just pick up on that point about the economy. You were quite critical during the primary season of John McCain's credentials on the economy. Have you suddenly changed your mind on that?
ROMNEY: Well, I must admit I always liked my credentials best. I wouldn't have been running if that weren't the case. But there's no question that John McCain who served for what, 25 years in the Senate, has been part of the Reagan revolution, has seen our economy go up and down...
ROBERTS: Right.
ROMNEY: ... understands what it takes to grow jobs and to protect the livelihood of the American force.
ROBERTS: But you yourself -- you yourself suggested though that the economy wasn't his strong suit.
ROMNEY: Well, I think Senator McCain is absolutely right when he says the thing he is focused upon has been our foreign affairs. But he also understands the economy and, of course, I pushed as hard as I could on that, but he won after all.
And, of course, as you compare Barack Obama and John McCain on experience, there's just no comparison. John McCain is head and shoulders above Barack Obama when it comes to experience on the economy, when it comes to experience reaching across the aisle, when it comes to experience on Iraq, experience on foreign affairs, experience in protecting Israel. There's just no comparison on the experience and judgment of a person who's been there the last 25 years.
ROBERTS: On your point about Israel, all of the candidates this week addressed the AIPAC conference, the American Israel Public Affairs Committee. John McCain did on Monday, Barack Obama did on Wednesday, and he pushed back about -- against John McCain's criticisms of his idea that he wants to meet with Iranian leaders and meet with the leaders of other rogue nations. Let's listen to what he said.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESUMPTIVE PRES. NOMINEE: I have no interest in sitting down with our adversaries just for the sake of talking. But as president of the United States, I would be willing to lead tough and principled diplomacy with the appropriate Iranian leaders at a time and place of my choosing.
(END VIDEO CLIP)
JOHN ROBERTS, CNN, ANCHOR: So he's saying this is not a frivolous meeting. This would only be done if he felt that he could advance American interests.
MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: You know, he's going to do his very best to try to walk back from what he said at the Democratic debate, and in the Democratic debates the other candidates made it very clear that they would not sit down with Ahmadinejad himself or with Hassad or Kim Jong-Il or Castro without condition, and Barack Obama said he would sit down with them in his first year. He would meet with them without condition. A statement like that shows a naive lack of experience that I think is going to haunt him throughout this campaign. It's the wrong course for him to have set. It's why people in Israel are very concerned about Barack Obama and why, I believe, you're going to see time and again the experience of John McCain standing forward as a much better example. So I think he's trying to say now he just wants to negotiate with these people only if he can make progress. Look, that's not what he said in the debate. He said he would meet personally with Ahmadinejad, with Hassad, with Kim Jong-Il, with Hugo Chavez with Castro. That's simply the wrong course for American foreign policy. You only meet with those people when there have been conditions met, when there's been progress. Of course you talk diplomatically. Diplomatic channels are always open between nations of the world, but the president doesn't grace the world's worst tyrants with a propaganda bonanza.
ROBERTS: Hey, governor, one more question quickly before we go, the Memorial Day holiday came and went without that gas tax holiday. What happened?
ROMNEY: Well, you know, I wish we did see the gas tax holiday that Senator McCain pushed for. I know it would have made a difference to a lot of people who were paying a lot of money for gasoline.
ROBERTS: He hasn't mentioned it lately. Is it off the table now?
ROMNEY: Well, it's something that he's for, and he's going to have to get the Democratic leadership to take something like that up.
ROBERTS: Governor Romney, thanks for joining us this morning. Good to see you again.
ROMNEY: Thanks, John. Good to be with you.
ROBERTS: Kyra.
KYRA PHILLIPS, CNN ANCHOR: 7:31 Eastern time right now. Here's what's happening. Breaking news, New York's top Democrats say they plan to endorse Barack Obama today and tomorrow. Among those who will be supporting Obama, New York Governor David Paterson, who will make that announcement tomorrow.
And news of the impending endorsements come as Hillary Clinton has announced that she will officially suspend her campaign for the presidency this weekend. In a letter released this morning, Clinton says that she will endorse Barack Obama at an event on Saturday, and she'll urge her supporters to do the same.
And new concerns this morning after a strong aftershock in China. Officials say that one of the lakes that formed after last month's earthquake could now burst. The 5.3 aftershock rocked the area this morning. Engineers are trying desperately to relieve the pressure on that dam.
And the Obama campaign has unveiled a three-person team to help him pick a running mate. It includes first daughter Caroline Kennedy. CNN's Tom Foreman has more now on some of the names certain to make that shortlist.
TOM FOREMAN, CNN ANCHOR: Let's start off with Hillary Clinton. Her positives are easy. She had almost as much support as he did. She can bring in a lot of supporters if she got behind him. You could drag many of those voters along especially women over 30 whom he needs some help with. She has experience in the executive office in matters of foreign policy, things like that, things that he lacks, and taking her on would be a very powerful signal for the party to really unite and fire up for the fall. But her negatives are also pretty easy to see. There's this sense that many of her supporters right now are almost demanding the vice presidency, and if Obama would not want to appear weak, he can't just give in to them and make it look like he's afraid of her influence. That would be a concern. He's also been all about change, and her presence could undermine that, more of a traditional Democrat, and that could give a sense that it's weakened his moderate support.
And many Democrats have told me the frankly can't imagine Obama letting former president Bill Clinton having a key to the White House to scrutinize all of his policies. So who else could he turn to? Well, if he wants to bolster his experience on foreign affairs or military matters, he could look at any one of these folks here. Senator Evan Bayh out of Indiana, experience on the armed forces and intelligence committee. That would matter. Retired General Wesley Clark. He's got some real credentials to carry with him. Senator Jim Webb of Virginia, a decorated veteran, or maybe Sam Nun, a former long-time Georgia senator who would bring some deep experience and heft to Obama's side. All of these fellows would also help Obama with the white male vote, which we know is a bit of an issue.
If Obama wants to improve his fire power in some pivotal states, he could go with someone like Governor Ted Strickland of Ohio who could solidify his vote in that crucial region or perhaps Governor Ed Rendell of Pennsylvania. Rendell has supported Clinton but that can work in Obama's favor by helping bring her supporters into the fold in the keys states. And, of course, if Obama is worried about the women's vote, Hillary Clinton is not the only choice. Kathleen Sebelius, governor of Kansas, might help out. Smart, respected, from an old political family, and of course he's big friends with Oprah, too, so you never know.
ROBERTS: So how is a possible Obama presidency being viewed overseas? We're getting reaction from allies to world hotspots, Atika Shubert is live in Jerusalem this morning. And Atika, what's the perception of President Obama there a president Obama there, not president Obama.
ATIKA SHUBERT, CNN CORRESPONDENT: Well, he's still something of a question mark for many people here. What they do know is that he is promising change for the U.S., and that means change for the world. And that's making some people happy, but others particularly here in Israel are not so sure.
(BEGIN VIDEOTAPE)
SHUBERT (voice-over): From the villages of Kenya to the streets of Japan, around the world celebrations of Obama's presumed Democratic nomination. With a personal story that spans the globe from Kansas to Kenya, Indonesia to Hawaii, Obama himself seems to be a citizen of the world. His supporters say Obama would change the face of America to the world. In the war-torn streets of Baghdad, Obama's promise to withdraw U.S. troops has this man's vote. He says, I would vote for Barack Obama
UNIDENTIFIED MALE: He's a good man.
SHUBERT: But in Beijing few know Obama's name. Few are still, think he will bring change. An indication perhaps that hopes for America's Obama-led image makeover may be short lived.
FAREED ZAKARIA, HOST, "FAREED ZAKARIA GPS": The question is will it last, and my suspicion is it will not last unless there are policies that pursue a very different course than we've been pursuing.
SHUBERT (on-camera): Change is not popular everywhere. If there is one place that is not celebrating Obama's win, it's here in Israel.
SHUBERT (voice-over): Newspapers scrutinize his every word. Particularly his promise to open negotiations with Iran. A softer diplomatic approach favored by some, but not by others.
UNIDENTIFIED FEMALE: I was very impressed with him personally. I am very concerned about his record on Israel. I don't think he ever came out with a pro-Israel vote.
SHUBERT: Outside of America's borders, hopes, fears, and indifference, all stemming from the very thing on which Obama has based his campaign, promise of change.
(END VIDEOTAPE)
SHUBERT: Now, what it really comes down to is that people here are still learning who Obama is, what he stands for, so there's a lot of hope and some fear that's being projected onto him, and the fact is they'll just have to wait and see if his actions live up to their expectations, John.
ROBERTS: Atika Shubert live for us this morning. Atika, thanks.
PHILLIPS: Sometimes lawyers just don't have the time to exercise, but our Sunny Hostin found another way to stay in shape. Oh, yeah. And she's doing it live. Give it to us, Sunny. That's right. Dr. Sanjay Gupta is here to show us how video games are helping people of all ages to get healthy.
ROBERTS: That's our legal analyst? Is it?
And Ali is here talking about "Issue number one" this election season.
ALI VELSHI, CNN, SENIOR BUSINESS CORRESPONDENT: Or I can hula if you'd like.
ROBERTS: Or you could just sit there and watch Sunny all day.
PHILLIPS: We're sort of in shock there.
VELSHI: I got something to tell you about on business Monday. I have a lot of news for you. I am going to tell you about Continental announcing more cuts, aircraft coming out of service, job cuts, and I want to tell you a little bit about now that you have two presumptive nominees to talk about, or kind of, sort of, where they stand on issues that matter most to you. "Issue number 1," your candidates and the economy when we come back on AMERICAN MORNING. Stay with us.
(COMMERCIAL BREAK)
VELSHI: Welcome back to AMERICAN MORNING. I'm Ali Velshi. We got some news from Continental Airlines following on the heels of cuts that United yesterday. Continental says it is taking 3,000 jobs, cutting 3,000 jobs, getting 67 jets out of its fleet. Those will all be 737s. In fact, it's entire fleet of 737s, 300s, will be out of its fleet by the end of next year. It's reducing its capacity by 11 percent. And both the president and the CEO of Continental will be taking no more salary for the remainder of 2008. These cuts following a decision as I say a decision by United yesterday to pull 100 jets out of the fleet and lay off about 1,500 people.
Now, we've been talking about politics a lot. We will continue to, but now that we look like we're focusing on two candidates in the two major parties, I want to give you some sense of where they stand right now on the issues that affect your money. Your "Issue # 1" here on CNN. John McCain wants to keep President Bush's tax cuts in place for low and middle income earners. In fact, he wants to keep them in place for everybody. He wants to repeal the AMT, the Alternative Minimum Tax which more and more Americans are falling into. It used to be something which is for the highest of income earners. But now there are many middle income earners paying that. He thinks there should be a three-fifth vote in Congress to be able to raise any taxes whatsoever and he wants to ban Internet taxes and new cell phone taxes.
Now, Barack Obama has a different view. He wants to repeal the tax cuts for the highest earners, for those with $250,000 or more in income, but keep it for middle income and low income earners. He also suggests no income tax for seniors who earn less than $50,000. And he wants to match the 50 percent of the first $1,000 that is saved by families earning less than $75,000. So, in terms of your taxes, there are differences. There are also differences in health care. What we are still waiting for in terms of the biggest part of the policy is where they stand on energy policy. But we'll be digging into that.
ROBERTS: We have been so focused on the differences in policy and there aren't many of them between Barack Obama and Hillary Clinton, it will be good to give a real examination to this.
VELSHI: It will be very healthy to do that. We look forward to it.
ROBERTS: Thanks, Ali.
VELSHI: Let the healing again. James Carville joins us live next hour. As his candidate gets ready to suspend her campaign. We'll ask him how he thinks Barack Obama will do in November.
PHILLIPS: And Jacqui Jeras watching extreme weather for us. Jacqui.
JACQUI JERAS, CNN METEOROLOGIST: Hey, guys, it's going to be another one of those crazy days. This is an unusually strong storm. Find out who is going to be most likely to hear the sirens go off. You need to know and to have your radio tonight. We'll have your forecast coming up.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): Coming up on AMERICAN MORNING. Prime time drama.
UNIDENTIFIED FEMALE: Why don't you kick your shoes off and join the party.
ROBERTS: Sex, drugs, and swinging. Is it too racy for TV?
UNIDENTIFIED MALE: This is a network in desperation right now.
ROBERTS: Behind the scenes of "Swingtown," ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
JERAS: Welcome back to AMERICAN MORNING, everybody. I'm meteorologist Jacqui Jeras. We've talked a lot about severe weather. This has been an unusually active spring and now heading into the summer months. We've been telling you pretty much every day watch out, there's going to be severe weather, and there's likely going to be severe weather in the plains. But I really want to you take this threat very seriously for late today into tonight because there is the potential here for a major outbreak of tornadoes. Large, violent tornadoes that stay on the ground for very long periods of time and can cause this catastrophic damage. This is what we call a moderate risk day. We could see upwards of maybe 10, 20 tornadoes at least in this area. There you can see from Minneapolis down towards Wichita, the greatest risk comes in late. We do have that threat out there at this hour. A lot of wind damage and heavy rain across parts of Wisconsin and also down into parts of Iowa. Kyra and John, I'm going to put you guys on the spot and I'm going to ask you, do you guys have a NOAA weather radio, do you own one?
ROBERTS: Yes, I have one, but unfortunately it's in my go bag.
JERAS: Doesn't count.
ROBERTS: It's in my hurricane go bag.
PHILLIPS: He is way too organized.
JERAS: Everyone needs to have one, even if you don't live in tornado alley.
PHILLIPS: They're not that expensive, right?
JERAS: Now I know what I can get you guys for your birthdays. They're not. They're like $50, $60 maybe.
PHILLIPS: Let me see what it looks like.
JERAS: This is what it looks like. You can get this like on amazon.com. You can go to like Radioshack. You can go to, you know, some of the Krogers and (Publix) with things like sell these things. Make sure you get one with same technology, we call it, because you can program it for only your county, and only for tornadoes if that's what your worried about. So...
PHILLIPS: Back when I was a young reporter, I had my scanners in my car. We were really big on chasing stories.
ROBERTS: I bet folks in Falls Church, Virginia never thought that they needed one yesterday.
PHILLIPS: There you go.
ROBERTS: Jacqui, thanks so much for that.
PHILLIPS: We're listening. OK.
JERAS: Yes. All right. Thanks.
PHILLIPS: Exercise is boring for some, but how about in the form of a video game? Sunny Hostin, oh and Ali. Excellent. This is usually our legal analyst and our business guru. They're shaking it like a Polaroid. Look at Sunny. Oh, my. Dr. Gupta is going to tell us why this type of exercise is actually very good for your health and also your attention span.
ROBERTS: Don't go there. And Hillary Clinton steps aside. One of her strongest supporters here live next hour. James Carville on the healing ahead and how he thinks Obama will do.
(COMMERCIAL BREAK)
PHILLIPS: Video games. Well, they're not just for kids anymore, they're for our legal analyst and our business guru there. They have made a lot of advances with virtual reality games as you can see. Many medical institutions are using the systems for other purposes than just fitness and fun. Joining us this morning with more on video gaming for healthy living our own chief medical correspondent Dr. Sanjay Gupta. All right. There's something about Ali that's taking it to a different level. Sunny however though definitely has a sexy groove on right now.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: We actually got Ali's coat off. This is one of the more memorable segments I think I've ever done.
PHILLIPS: This is why bald men should not dance on live television. Sunny though has got the groove. GUPTA: She was telling me she's really feeling it in her core. And this is a good workout for her. With Ali, we'll find out a little later on.
PHILLIPS: But with regard to your colleagues in the medical community, what do they think about this on a bit of a serious note here.
GUPTA: Well, you know, it's interesting, there's a new study coming out, the Robert Wood Johnson Foundation which is a very prestigious medical foundation is going to look into this. They're actually going to fund 12 different studies specifically looking at video games and trying to figure out what the impact is on health. You know, we talked about this somewhat. I think it's interesting like at Ohio State for example, patients who are undergoing rehab of some sort after a stroke or after an accident, getting Wiis or other devices like that to help them actually perform repetitious activity to get some of their strength back. I think that's really an impressive thing and seems to work when we interviewed some of those patients. Also there's another place where they're actually using it at Texas A&M. Using the Wii to actually train ER docs. Train on the Wiis so they don't make mistake on some patients later on.
PHILLIPS: Explain that to me.
GUPTA: You're using it as a teaching tool essentially. So, they create these scenarios where you're in the emergency room dealing with patient, some sort of trauma situation or something and they practice using the video game before they actually do it on real, live human beings. So, you know, there are different applications but again RWJ, Robert Wood Johnson funding studies now to look into what they believe is going to be a real tool here.
PHILLIPS: So, exercise wise when we watch Ali --
GUPTA: You can't take your eyes off him.
PHILLIPS: You know, I tell what you, is this like running three miles if you do this for 10 minutes? I mean, give me an idea --
GUPTA: You could quantify and I would say Sunny is getting more exercise there than Ali. Ali's having a good time now.
PHILLIPS: Ali is just trying to work a date right now.
GUPTA: How's he doing, you think, Kyra?
PHILLIPS: You know, I'm not -
GUPTA: There's a lot of reasons to get kids off the couch. But even the makers of a lot of these devices say look, this is an entertainment device. We never really intended this to be an exercise device but we know now that if people get up and use these sorts of tools they burn three to four times calories of regular video games.
PHILLIPS: Really? GUPTA: At the highest settings like maybe Sunny was doing over there, five to six times. It does seem to be making a difference. Anybody will tell you, again even the makers will tell you this is not a substitute of the gym, but it does a pretty good job.
PHILLIPS: And it's pretty entertaining especially when you have folks to do it. Sanjay, thanks.
GUPTA: All right, Kyra. Thank you.
(BEGIN VIDEOTAPE)
PHILLIPS (voice-over): Bowing out.
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: It is an honor to call him my friend.
PHILLIPS: Hillary Clinton finally ready to back Obama and let the healing begin. How deep is the divide? We'll ask James Carville.
Plus, too hot for TV.
UNIDENTIFIED MALE: Why don't you take your shoes off and join the party.
PHILLIPS: "Swingtown" brings '70s style orgies to network TV, making the critics sweat, ahead on this AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: 56 minutes after the hour. Now to breaking news. Hillary Clinton's history-making presidential campaign is all but over. In a letter released early this morning, Clinton says she will suspend her campaign during an appearance with supporters on Saturday. She will also endorse Barack Obama and encourage all her supporters to rally behind him. Suspending the campaign means that she is no longer an active candidate, but is entitled to hang on to all of those delegates that she won.
PHILLIPS: CNN's senior political correspondent Candy Crowley now has more on what's next for Hillary.
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Good morning, John and Kyra. You know, when Hillary Clinton did not bow out of the race on the last night of the primary season, the question to her staff was, why not? The answer was, because she wants to pick the timing and the place, and now she has.
(BEGIN VIDEOTAPE)
CROWLEY (voice-over): She will end it Saturday, folding the tent on her historic campaign, handing it over to another kind of history. She began the process Wednesday in a speech to Jewish-American leaders where not just the words, but the verb tense, spoke to a turning page. SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: It has been an honor to contest these primaries with him. It is an honor to call him my friend, and let me be very clear, I know that Senator Obama will be a good friend to Israel.
CROWLEY: Clinton is expected to suspend her campaign rather than drop out. It means she'll be entitled to keep the delegates she won, and that may be a clue to the biggest question of the week, what does Hillary want?
CLINTON: And I think, too, of all those wonderful women in their 90s who came out to see me because they were born before women could vote. And they wanted to be part of making history.
CROWLEY: Part of what she wants, friends and adviser says, is to write the final draft of that history, perhaps keep those delegates until the convention so they can vote to her, not to change the outcome, but for the history. She should do it, said one high-profile Clinton supporter, for Chelsea and the rest of us. Few doubt Clinton would take the vice presidency if offered and many of her long-time supporters are pushing for just that but there's a difference between accepting and demanding it.
GOV. ED RENDELL (D), PENNSYLVANIA: You don't bargain with the presidential nominee even if you're Hillary Clinton and you have 18 million votes. You don't bargain.
CROWLEY: In fact, she's more conflicted about the idea of being number two than stories might suggest. Inside the campaign, they are certain she'd take it if asked, but it is not on her list and neither is money to help pay her campaign debt. What she wants people who have talked to her have say is respect for the history for her or her voters.
CLINTON: Thank you to the people across America for welcoming me and my family into your homes and your hearts.
CROWLEY: Her Saturday's speech is seen as part of one adviser called a multistep process. The thinking is she cannot just give a speech, say nice things about Obama and go away. They believe her supporters downscaled voters women and Latinos will feel abandoned and unwilling to move to Obama's side.
(END VIDEOTAPE)
CROWLEY: In the end, it's not what people around her want for Hillary Clinton wants, it's what she wants and only a handful of people really know what that is. What everybody knows is that she has the power with the delegates and the 18 million people who voted for her to get some of what she wants. John and Kyra.
ROBERTS: Candy Crowley for us, thanks.
PHILLIPS: And in Clinton's letter this morning, she writes "the stakes are too high for the party not to unify." ROBERTS: And coming up at 8:25, one of Clinton's strongest supporters, James Carville, joins us live with details on her decision and where she goes from here.
PHILLIPS: Also breaking right now, New York's top Democrat plan to endorse Barack Obama today.
