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FBI Releasing Some Violent Crime Stats; Health Alert Regarding Tomatoes; How do John McCain and Barack Obama Match Up in Washington?; Massive Explosions in China's Earthquake Zone

Aired June 09, 2008 - 09:00   ET

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


HARRIS: And severe weather, record flooding in the Midwest making for a mammoth cleanup. The East Coast bracing for more brutal heat in the NEWSROOM.
COLLINS: From the gas pumps to the grocery checkout, prices are climbing and your paycheck seems to be shrinking. Your money is "ISSUE #1" and there are a number of new developments we're watching very closely this morning.

Where is Wall Street headed today? Thirty minutes before the opening bell, earlier signs suggest a possible rebound from Friday's big losses when the Dow lost more than 3 percent. I'm sure you remember that.

Investors around the world are nervous, too. Overseas markets tumbled overnight. Japan, South Korea, Taiwan, Thailand and New Zealand all down. Soaring energy costs are fueling much of that anxiety.

For the first time ever, U.S. gas prices have soared above $4 a gallon.

HARRIS: Gas and oil -- let's get the latest on America's fuel crisis.

Ali Velshi is CNN's senior business correspondent.

Ali, I know you've got polls. I know you've been following this. Where do you want to start?

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Well, let's first of all talk -- Heidi has mentioned Asian markets were down overnight. And that's true. I think it was probably a hangover from what happened on Friday on the Dow. The Dow was down almost 400 points because of the negative economic news we had on Friday, between unemployment and oil.

But right now it looks like U.S. markets are set to open higher, looks like maybe we're done. We got that 400 points out of our system on the Dow. We're going to start positive.

So that's where we stand right now.

Number two, oil is down a little bit from where it was on Friday. We were on NEWSROOM in the afternoon while it was happening. $139.12, a spike of more than $11. We've never seen such a thing in history. So we're down a little bit on oil as well right now.

Now we've been asking Americans what they think about and guess what? We're lucky. We called this thing "ISSUE #1." It remains "ISSUE #1."

According to the latest CNN/Opinion Research Poll -- take a look at the numbers. It is the biggest issue as far as Americans are concerned. Right now the economy 42 percent say it's number one. Iraq is followed -- follows with 24 percent, then health care, then terrorism then immigration.

Now take a look at how that's changed. Right now, 22 percent of people think that the economy is good, our economic conditions can be described as good. In March it was 25 percent, January, 40 percent, and September, 54 percent. So we have dropped from that point.

There's one piece of good news in this whole puzzle, Tony, and that is that, when asked whether economic conditions will be good next year, a year from now, Americans increasingly say they think so. So right now, 22 percent of people think that the economy is good. Fifty-two percent say it will be good a year from now.

HARRIS: Hey, Ali, I got to ask you, because we're going to point to the bell. I was watching Friday's NEWSROOM and my goodness...

VELSHI: Wow.

HARRIS: ... that was a roller coaster ride. What is it that you're seeing that indicates that we might get an up open for the markets this morning? Is there something out there?

VELSHI: Well...

HARRIS: Some economic news?

VELSHI: No, no, I think this is -- the analysis, obviously, we look at the futures trading...

HARRIS: Yes. Yes.

VELSHI: ... which tells us where it's likely to open. But the indications are, you know, that people are in as bargain hunters. They feel that maybe on Friday people ran for the hills when they saw these oil prices going where they are and now people are sitting here saying, well, maybe that was overdone. Let's buy it in.

Again, we've had a volatile market over the last year.

HARRIS: That's right.

VELSHI: So hard to know what's driving it and how that can change. But for the moment, no specific indicator. Markets just seem to be pointing up.

HARRIS: Fingers crossed.

VELSHI: Yes.

HARRIS: We'd like it to go in a positive direction. That's for sure.

All right, Ali, you're with us throughout the morning. We appreciate it.

VELSHI: I am.

HARRIS: And also we should mention that Ali is going to drill down -- pardon the pun -- even deeper into the economy. Later he will interview Treasury Secretary Henry Paulson. That is live during "ISSUE #1" at noon Eastern.

And do you have a question about where the economy is heading or questions about your credit, gas prices, food prices, anything else, e-mail them to issue1@CNN.com.

COLLINS: Extreme weather to tell you about this morning, from massive flooding across the Midwest to sizzling heat in the northeast.

Indiana, Iowa, Wisconsin, Michigan, all slammed by storms that dumped heavy rains. People across the region dealing with flash flooding, power outages and evacuations.

At least eight deaths are blamed on the storm.

As people along the East Coast trying to beat the heat, some major cities could see triple-digit temperatures today. So we're all over the story for you.

Of course, CNN meteorologist Jacqui Jeras is here in the Weather Center with what you can expect in your forecast and our Reynolds Wolf is watching the mercury from the National Mall in D.C.. We'll watch him sweat for a bit, but first a storm wrap-up from our Susan Roesgen.

(BEGIN VIDEOTAPE)

BOB POTEMPA, CNN IREPORTER: All this debris in the air.

SUSAN ROESGEN, CNN CORRESPONDENT (voice over): A CNN iReporter spotted this tornado, as if it had spun right out of the "Wizard of Oz." But this was near Chicago and Dorothy didn't have to deal with what came next.

In dozens of cities and towns, the weekend storms brought more water than wind. Near Indianapolis, what could have been a fun school field trip was instead a real life evacuation.

UNIDENTIFIED REPORTER: There is a lot of destruction here.

ROESGEN: Homes, businesses and farmers' fields seem to sink beneath rising rivers and lakes.

Staying at one of the shelters, Oscar Regan(ph) thinks the flood took everything. OSCAR REGAN, STORM VICTIM: I think I'm pretty much did because the water was nearly to the ceiling.

ROESGEN: Those who have homes to go home to are cleaning up now, in Nebraska and Michigan, and Wisconsin. But in this small town of New Hartford, Iowa, the fight to hold back a flood is over. The entire town, 650 people, finally gave up and they're all getting out.

J.D. LUND, NEW HARTFORD FIRE DEPT.: The dike on the west end of town is lower than the surrounding. We did sandbag out a little bit but that's pretty much a lost cause.

ROESGEN: Other people aren't giving up yet. They're getting around as best they can, waiting for the water to give back what lies beneath.

Susan Roesgen, CNN.

(END VIDEOTAPE)

HARRIS: OK. What do you say we do the right thing here which is to check in with Jacqui Jeras in the Severe Weather Center.

Jacqui, good morning.

(WEATHER REPORT)

COLLINS: Yes, yes, major heat to say the least. You know how I am about that. Very graceful.

(CROSSTALK)

HARRIS: I love it.

COLLINS: He's out there playing tennis in the heat of the day over the weekend.

HARRIS: That's a little insane.

JERAS: Not between 3:00 and 6:00, Tony.

HARRIS: Yes, you're...

JERAS: Bad air quality.

HARRIS: That's right.

JERAS: That's all I'm going to say.

COLLINS: (INAUDIBLE) every hit it?

All right, Jacqui, thank you.

Another day of brutal heat along the East Coast as we've been mentioning.

Reynolds Wolf is watching the mercury from the National Mall in Washington, D.C.

Right now, Reynolds, I'm sorry, you drew the short straw here.

REYNOLDS WOLF, CNN METEOROLOGIST: You know, it's a great assignment. I mean it's a beautiful day but what a scary story in terms of the intense heat. You want some numbers? Take a look at this number I've got for you. This gizmo that I'm holding shows a combination of the temperature and the high humidity, which, of course, is your heat index and right now it reads right around, well above the century point by this time.

COLLINS: Already?

WOLF: I'll tell you what. Something even worse that we're going to be seeing those temperatures and the heat index rising more into the afternoon hours, especially when you have these clear skies and that peak heating it's going to be a rough time.

The response we've had from the heat? Well, some of it has been good, some of it is bad. The bad side, we've had 1,600 blackouts at this time, rather power outages, rolling blackouts, as people have been really cranking up the AC, trying to combat the heat.

The city has been doing what they could to help out and what they've been doing is opening up cooling centers, and at -- same time some places called spray centers.

Now if you're curious what a spray center might is, take a look at this video showing you that basically it's kind of self- explanatory. It's an area where you can spray off. You see these kids out there just making the most of us. We're going to have several of these open up around the city here in Washington, D.C.

Plus I mentioned we got the cooling centers, and if you don't have access to either one, keep in mind there's always the mall. You can always go to any of the attractions you have here. Many of them air conditioned, anything to do to take an edge off the heat, which is something we're going to deal with not just today but for tomorrow.

Those excessive heat warnings we have in New York, also in Philadelphia, figure it'll last the evening but the excessive heat or rather the heat advisories are going to last through Tuesday.

And as Jacqui will tell you, we can expect some changes we get to midweek and into the end of the week. Temperature also going to return back to the 80s and people can't here -- people here can't wait for that to happen soon enough.

COLLINS: Yes. I bet that.

WOLF: I'm sure you're -- how are you enjoying the studio? How -- 70 degrees? 68 or so?

COLLINS: It's pretty nice. It's pretty nice.

WOLF: Yes. COLLINS: We don't need any spray centers here. So, all right, Reynolds...

WOLF: Yes.

COLLINS: ... we'll be -- continue to check in on you and see how you're...

WOLF: Talk to you soon.

COLLINS: How he's holding up.

Thanks, Reynolds.

HARRIS: And if you're suffering through this spring heat wave, you want to know where you can go to escape the heat, try this. Take a trip to Eureka, Nevada. They had a record low, 27 degrees, yesterday morning. If the desert doesn't do it for you, then head to the great northwest. The temps plus 29 degrees in Meacham, Oregon, and up to a foot of new snow is forecast overnight for the western slopes of the northern and central cascades in Washington state.

How about that?

COLLINS: I know. Book that trip quick.

Just in, too, now, we want to make sure that we get this out. According to the Associated Press, Senator Ted Kennedy is expected to be released from the hospital today.

Obviously, this is one week now after undergoing the surgery that he had -- serious surgery he has -- for brain cancer.

So I just want to put that out. We will continue to follow this story for you, I'm sure, try to get you a shot of the senator leaving the hospital if that is possible.

But once again, according to the Associated Press, Senator Ted Kennedy is expected to be released from the hospital today.

Meanwhile, President Bush is on his way to Europe right now. He left the White House just a couple of hours ago. The first stop in his six-nation tour is Slovenia. There, the president will meet his counterparts from the European Union. He is expected to talk about economic issues and operations in Afghanistan.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: First, I'm looking forward to talking about the freedom agenda with the European nations. Got a lot of work to do in Afghanistan. And the countries I'm going to have committed troops to Afghanistan and, of course, we want to thank them and remind them there's a lot of work to be done.

(END VIDEO CLIP)

COLLINS: Other stops include Italy, Germany and England, where he will meet with Queen Elizabeth.

HARRIS: Looking ahead, Barack Obama and John McCain making plans for November, making appearances this morning.

ANNOUNCER: Weather update brought to you by...

(COMMERCIAL BREAK)

COLLINS: Welcome back, everybody. I'm Heidi Collins. You are in the CNN NEWSROOM.

We are watching the economy today. The opening bell about 15 minutes away now. How high will it go with the Dow as well? And then these gas prices. The path of milestones. So are more spikes on the way or will the bubble burst?

(COMMERCIAL BREAK)

ANNOUNCER: News as it develops as only CNN can bring it you. See for yourself in the CNN NEWSROOM.

COLLINS: Barack Obama back in the campaign today after a weekend of biking and golfing. The presumptive Democratic presidential nominee speaks in North Carolina this morning. The economy -- the focus at this event. It gets under way in about two hours so we are going to bring it to you live when that happens.

Hillary Clinton had the weekend spotlight all to herself. She spoke to supporters in Washington suspending her campaign and backing Obama.

John McCain has a couple of fundraisers today. He's also expected to speak in Virginia this morning. McCain raised $21.5 million last month, his best fundraising month so far. Obama raised $32 million in April.

HARRIS: Barack Obama and the race debate, his landmark accomplishment, shining a light on what it means to be biracial in America.

CNN's Jason Carroll has the story.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice over): Last Tuesday, Senator Barack Obama made history as the first African-American or first black presumptive nominee for a major party, depending on the headline.

He is a first. That's not disputed. The question: is it accurate to call him black?

MICHAELA ANGELA DAVIS, CULTURAL CRITIC: First of all, he can't say, "I'm a white guy" named Barack Hussein Obama. You know, no one -- no one's going to buy that. We're not ready for that.

CARROLL: In a speech on race, Senator Obama made clear he hails from a biracial family.

SEN. BARACK OBAMA (D), PRESUMPTIVE PRES. CANDIDATE: I'm the son of a black man from Kenya and a white woman from Kansas. I was raised with the help of a white grandfather.

CARROLL: Despite that heritage, Obama identifies himself as black, in part, because that's what people see.

DAVID MENDELL, AUTHOR, "OBAMA: PROMISE TO POWER": When he walks into a room, people do not see someone who is white or biracial. They generally see someone who is -- who looks African-American.

CARROLL: Obama explains it, on "60 Minutes."

(BEGIN VIDEO CLIP, "60 MINUTES")

OBAMA: Walking down the south side of Chicago, and visiting my barbershop and playing basketball in some of these neighborhoods, those aren't questions I get asked.

UNIDENTIFIED REPORTER: They think you're black?

OBAMA: As far as they can tell.

CARROLL: Jen Chau knows the debate all too well. Her father is Chinese, her mother, white. She founded a biracial support group called Swirl.

JEN CHAU, BIRACIAL: You'll have mixed race people who will say like we have we're a mixed race and then you'll have mixed race people who identify with one over the other.

CARROLL: The Swirl members we spoke to support Obama's choice to call himself black.

LYNDA TURETO, BIRACIAL: That's the racial reality in the United States. I myself am a woman who's half white but I would and could never identify as a white woman.

CARROLL (on camera): I wonder if we'll just get to the point where these labels won't be necessary.

ANDRES JACKSON, BIRACIAL: It's hard for me to see, you know, a future where the labels won't be there, but what I do hope is that there will be much less importance placed on those labels.

(END VIDEOTAPE)

HARRIS: Yes, and Jason, even that young man has it there -- Jason Carroll, joining us from New York this morning. With the country growing more and more diverse every day, you wonder, will the debate over race continue?

CARROLL: Well, one thing is for sure, the race is -- the debate is going to continue as the country becomes more diverse. You remember, Tony, just in 2000, that was the first time the census allowed people to check more than one box in terms of identifying their race. 6.8 million people identified themselves as biracial or multiracial, and so I think as this country continues to become more diverse, our perceptions are going to have to change and certainly our vocabulary is going to have to change as well.

HARRIS: Who am I? That -- that becomes an important distinction for all of us in our lives.

Jason Carroll for us, out of New York. Jason, appreciate it, thank you.

CARROLL: All right.

COLLINS: Comedian Al Franken smiling today. His bid for the U.S. Senate got a big boost from Democrats at the Minnesota state convention. The former "Saturday Night Live" writer and liberal radio host winning their endorsement. But first, had to apologize for some of his old jokes that offended some fellow Democrats.

Franken is likely to face Republican senator Norm Coleman in November.

HARRIS: The economy and your health. Are money concerns taking a toll on your well-being?

CNN medical correspondent Elizabeth Cohen takes a look.

(COMMERCIAL BREAK)

COLLINS: We're talking "ISSUE #1" today. So is your health suffering along with the nation's economy? Anyone who struggles to pay bills can tell you about the physical and mental toll.

So here with a closer look now, CNN medical correspondent Elizabeth Cohen.

So how does this economic hardship really affect our health?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: You know what, it affects you psychologically and it also affects your whole body. And a lot of people don't know that. But what people do know is they're stressed out. So I'm going to give you some statistics that I thought were pretty incredible.

The statistics show -- this is according to an American Psychological Association poll that 74 percent of respondents said that work or money were stressing them out. This is in 2007. And that's up quite a bit from the year before when it was only 59 percent.

Now, if people were that stressed out in 2007, three out of four people were stressed out, you can only imagine what it would be now, right? Because things have really only gotten worse in many ways.

COLLINS: Yes, absolutely. Those are really high numbers. Those a jump of almost 20 percent, right?

COHEN: That's it. That a huge jump.

COLLINS: Gees. And -- well, we know that -- you know, when you were talking about your bills and your health care and all that, especially now, you can kind of get, I mean, no kidding, depressed.

COHEN: Right.

COLLINS: Talk a little bit about the physical manifestations that come along with the emotional ones.

COHEN: It can affect you from head to toe. Stress can take its toll.

COLLINS: Is that what that is? I mean my shoulder right here.

COHEN: And you were right. It's probably how often it work it out for you. Yes, that probably is what that is.

COLLINS: It started about three weeks.

COHEN: Right. There you go. It probably is what that is.

So let's talk about all the different ways the stress can affect you starting with the head. Jaw -- we've heard of TMJ, that can be caused by stress, and that's a very painful condition in the jaw.

And your heart. It's no secret, you could almost feel your blood pressure going up when you get worried about things. High blood pressure can make you more at risk for heart disease and also for strokes.

The digestive system. We're talking about everything from nausea to -- even some people get even sicker, just a terrible feeling in the pit of your stomach. There's a reason for that expression.

And really the entire body is affected by stress, because stress can make your immune system not work very well. It can make it difficult to get sleep.

COLLINS: Yes.

COHEN: So when those things happen, it's affecting your health in every possible way really.

COLLINS: I think we really understate. We've been saying this for years, you know, the effects that stress can have on you.

What can you do about it aside from going to the spa for two, three weeks? Really great.

(CROSSTALK)

COHEN: Right. That would be great but especially if you're having financial issues... COLLINS: Yes, that's not going to happen.

COLLINS: Yes, the spa is not going to be -- not going to be where you want to go.

There are some very obvious things that we talk about all the time such as getting counseling or making a budget so that you have -- sort of can see in black and white where you're headed.

But there's another thing that people often don't think about and that is just to get financial counseling, because once you get your finances under control, all of you is going to feel better.

So the National Foundation for Credit Counseling gives free counseling to folks to sit down, to work out a budget, to figure out how you're going to get out of whatever mess you might be in, NFCC.org. It's very simple. You put in your zip code and all of these free services come up.

COLLINS: All right. Very good. It's certainly worth chatting about.

COHEN: Sure.

COLLINS: Appreciate it, Elizabeth Cohen, thanks.

HARRIS: Where are the markets going to go today? Isn't that the question of the morning really as we look at "ISSUE #1," the economy? Your money?

We're just a couple of minutes away from the opening bell. How will Wall Street react? Some indications, NASDAQ, S&P, Dow futures positive? Maybe that means a positive start.

Where is Susan Lisovicz? I need Susan Lisovicz. We'll talk to her in just minutes right here in the NEWSROOM.

(COMMERCIAL BREAK)

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

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

COLLINS: And I'm Heidi Collins.

Obviously, today is another day where we're really watching Wall Street this morning.

Susan Lisovicz is standing by at the New York Stock Exchange now with details because, Susan, Friday was just plain ugly, and everybody is hoping that there's going to be a bit of a rebound. And some of the words I'm hearing out there are like jittery, dicey, unstable, you know, yet again. But we've been hearing those words for awhile now. SUSAN LISOVICZ CNN CORRESPONDENT: Yes, but Friday was really unusual. It was really an historic day in terms of crude prices and a huge jump in the unemployment rate so I mean, it was -- all of those adjectives are appropriate.

Investors did have a weekend to sleep on it. It looks like there could be a bit of a bounce in less than a minute, when the market opens, but by no means enough to erase a 400-point plunge on Friday.

Ringing the opening bell, there you see the platform, the chairman of the Federal Energy Regulatory Commission.

Energy, of course, a huge story for us, following the historic nearly $11 spike Friday. Crude retreating now in an electronic trading, down three bucks but the dollar is again losing ground against the euro and that has been a major factor in pushing crude higher all this year.

Fresh concerns about the health of the financial sector. Lehman Brothers today reporting a nearly $3 billion loss.

There's the opening bell.

Lehman Brothers shares have been down about 7 percent in the free markets.

The financial sector so important to the U.S. economy, also under pressure. You know, big casualty, this subprime meltdown. And we're seeing some positive numbers in the first few seconds of trading, Heidi. But like I said, the bulls have their work cut out for them, because there is the combination of sharply higher gas prices, falling home prices, and a weakening job market.

And remember, falling stock prices don't do anything for consumer confidence which is already at a 28-year low. Checking the numbers, the Dow is up 36 points. The NASDAQ is up 8. Remember, the Dow dropped nearly 400 points on Friday.

Heidi, back to you.

HEIDI COLLINS, CNN ANCHOR: All right, Susan. I know you'll be there watching very closely with those numbers. So we'll keep checking in with you. Thanks so much.

LISOVICZ: You're welcome.

COLLINS: We are also keeping a tight focus on the economy today here. And we want to know what is your view? According to a new CNN Opinion Research Corporation poll, the outlook is pretty gloomy.

Late last week, about 22 percent of you described the economy as good. That marks a steady slide, though, from September, when 54 percent of Americans gave a rosy assessment. But you may be surprised by this kind of optimism. 52 percent of Americans predict the economy will be good one year from now.

And while 78 percent now describe the economy as poor, only about 46 percent expect the same sour conditions one year from now.

TONY HARRIS, CNN ANCHOR: And this just in. The FBI releasing some violent crime stats. Overall violent crime in the United States declined 1.4 percent last year. You know, that actually reverses an up tick in violent crime from the previous year.

The preliminary figures for calendar year 2007, show a drop of 2.7 percent in murders and a drop of 2.1 percent in personal property crime. Violent crime was actually down in the northeast, the Midwest and the west but was up slightly in the south by 0.7 percent. We'll follow this information and bring you the latest right here in the NEWSROOM.

Another quick check of weather now. Jacqui Jeras in the severe weather center.

Jacqui, good morning.

(WEATHER REPORT)

COLLINS: And you, our viewers, of course, have been sending us your pictures. So let's go ahead and check out some of these I- reports. This one coming to us from Indiana. I-reporter Tara Alsip says it was just crazy in the Bloomington area.

She says water spilled over levees and flooded railroad tracks and washed away houses. President Bush actually declared a disaster in 29 Indiana counties yesterday.

This picture coming to us from Waterford, Michigan, after a storm tore through, ripping down trees and power lines. Valentin Marco who took these pictures says he was outside barbecuing when the storm blew through. He had to run for cover. And wind up safe in the basement. Thank goodness.

You can be part of the CNN news team, too. We invite you to do that by sending us your pictures at cnn.com/ireport.

HARRIS: The issues you care about, how will Barack Obama and John McCain tackle the economy and each other? We will check the campaign pulse next in the NEWSROOM.

COLLINS: In this unstable economy, you never know when you need some extra cash in a hurry. Ali Velshi has some tips on that that are "Right on Your Money."

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT (voice-over): Protect yourself. When it comes to this economy, having easy access to cash gives you a safety net for the unexpected, like losing your job. So you should have enough on hand to cover your lifestyle for several months.

WALTER UPDEGRAVE, SENIOR EDITOR, MONEY MAGAZINE: For my emergency reserve, these three to six months that I need. Your primary concern here is safety. You're not trying to get the absolute highest deal.

VELSHI: The key is putting your money in an investment you can withdraw from any time without penalty.

UPDEGRAVE: Security is of utmost importance. So you want to stick primarily to savings accounts, money market accounts, short-term CDs. You want to do the best that you can within those categories.

VELSHI: So, shop around and remember, this is a low-risk, low- reward investment. That's why finding the best rate is your best bet.

UPDEGRAVE: You are still, probably, a little bit below 4 percent, so you may be still losing out a little bit to inflation. But you can still do a little bit better than, for example, just getting the average return, just going -- automatically going to your local bank.

VELSHI: And that's "Right on Your Money."

Ali Velshi, CNN, New York.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

HARRIS: Hey, do you have tomatoes in your fridge? A health alert for you now. The FDA says you should avoid red plumb, red Roma and red round tomatoes, because they have been linked to a Salmonella outbreaks spreading across the nation.

More than 160 people in the 16 states have gotten sick. They'll pop up here in a second. 23 of them have had to be hospitalized. No deaths have been reported. Right now, the FDA is investigating where those tomatoes were grown. In the meantime, some restaurants, fast food chains and supermarkets have pulled them off the menus and shelves as a precaution.

COLLINS: Wrongly convicted. A man walks out of prison after nearly two decades. Then faces a challenge nearly as daunting as proving his innocence -- finding work.

CNN's Thelma Gutierrez has the story.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): Down this dirt alley in South Los Angeles, a grisly discovery. The body of a woman raped and murdered.

HAROLD HALL, EXONERATED INMATE: From what I understand, she was down here next to a metal garage, lying down on her back with her legs open and something around her head.

GUTIERREZ: A horrible crime that happened in 1985, in Harold Hall's old neighborhood. He was 18 and running with a bad crowd.

HALL: So what we did is we tried to go view the body.

GUTIERREZ: You never saw the body?

HALL: I never saw the body at all.

GUTIERREZ: Harold Hall made a perfect suspect. He was in jail for armed robbery. He told informants what he had heard about the murder. Detectives came after Hall, the teenager baffles.

Hall was convicted and sentenced to life in prison without parole for a crime Hall says he did not commit. If you knew you were innocent from the get-go, why would you confess?

HALL: When you have four detectives with you in a room and you're a kid.

GUTIERREZ: From that moment, his youth vaporized.

HALL: And here I was, you know, getting off a bus, going into a prison, being chained and there's a guy up there with a gun. And that just, tears came to my eyes. You know, and I knew I had to get out of there.

GUTIERREZ: He buried himself in the prison's law library. For nearly two decades Hall filed motions and worked to prove his innocence. Then he got a break from several criminal defense attorneys including Karl Henry who found holes in Hall's case. He spoke with the informant whose testimony had sent Hall to prison and got him to recant his story.

KARL HENRY, HALL'S ATTORNEY: There was nothing to tie Harold to this case.

GUTIERREZ: 19 years after he was locked up, Harold Hall was exonerated. The court saying there was no physical evidence and the informant wasn't credible. But Hall was 37 with no work experience.

HENRY: I knew that his chances of being able to get gainful employment, you know, one employer, when you look at the record and says -- well, I've been locked up for the last 19 years, but I didn't do it. It was just wasn't going to happen that easily.

HALL: Yes, I'm sure he could. I don't see why he could.

GUTIERREZ: So Karl Henry gave Harold Hall a job with the Los Angeles County Bar Association to help poor defendants find legal representation, something he didn't have.

HALL: Without him, I wouldn't be here.

GUTIERREZ: What did he do for you, what did he give you?

HALL: He believed in me. He believed in me. And he was able to convince, you know, he was able to convince the judge. You know, that this evidence was false.

GUTIERREZ: A life resumed after nearly 20 years behind bars. Thelma Gutierrez, CNN, Los Angeles.

(END VIDEOTAPE)

HARRIS: So how about this. A new week and a new discussion. The next phase of the presidential race getting under way. How do John McCain and Barack Obama match up in Washington?

Anne Kornblut, "The Washington Post" national political correspondent. And in New York, Mark Halperin, senior political analyst for "Time" magazine.

Mark, good to see you.

Anne, good to see you.

ANNE KORNBLUT, NATIONAL POLITICAL CORRESPONDENT, "THE WASHINGTON POST": Good to see you.

HARRIS: Here we go. So, Anne, let's start with you. The race is set. Two very different guys with different ideas for moving the country forward. Is America going to face a very real choice in November?

KORNBLUT: Yes. We're entering into a whole new phase of this election. Some of it is going to be along fairly traditional Republican-Democratic split line. Over what to do with the economy, certainly on the war in Iraq. But yes, we're entering a whole new phase of this campaign. Now that the primary is officially over and I think we're going to start to see Republicans and Democrats really coalesce around these two candidates.

HARRIS: Boy, Mark, what do you think?

MARK HALPERIN, SENIOR POLITICAL ANALYST, "TIME": You know, I'm going to be a little contrarian on this just for the sake of debate.

HARRIS: Love it, love it.

HALPERIN: Also because I think there's more to it. Look, there's some big differences on Iraq, on taxes. But I think if you take a lot of what McCain says on foreign policy, absent Iraq, you take a lot about what they say about changing Washington, there's some real similarities between them.

And the battle, to a large extent, is for those voters in the middle. They want to hear about problem solving. They want to hear about solutions. There's almost certainly going to be a Democratic controlled Congress. That's going to make McCain's agenda, I think by the end of this pretty similar to Obama's on a lot of issues.

HARRIS: That's interesting. You know, we've got some polling here about the issues most important to Americans. At least right now this snapshot at the moment. We're talking about the economy at 42 percent, Iraq at 24 percent, health care 12 percent, terrorism, 11 percent. Let's talk about the economy, because it is the focus of the network today. Boy, Mark, let me start with you. How do the candidates move on the economic issues? You can make an argument that the only real power that the president has is maybe in appointing the Fed chairman. Maybe some fed governors. Those positions sort of controlled and set and monetary policy. But what do you think on this?

HALPERIN: Well, look, they both have long term ideas about entitlement reform, social security, health care. Also, about energy and the environment. But in the short term I think the challenge for them is to give people a sense, as Bill Clinton was so good at doing when he ran. What do they see as the economy in American and around the world -- what do they see as the strengths and weaknesses of the American economy.

How can they inspire optimism in Americans that they will make the economy better? Maybe not right away, but over the long term. Neither of them has excelled at that in any point in their career and it is the challenges. Issue one for CNN and job one for these two candidates.

HARRIS: Hey, Anne, how do the candidates move on this issue of the economy?

KORNBLUT: Well, I would agree with Mark and add to it that tax cuts are going to be essential. As Obama tries really hard to tarnish McCain with being a third term of the Bush administration, you're going to hear him talk about the Bush tax cut which of course is up for debate now, whether it should be continued or not.

You're going to hear him talk about gas prices in the immediate short term, since that's something that's on everyone's mind.

HARRIS: Yes. You know what, I'm curious to your thoughts on this. Who has the best chance, Mark, of expanding their party's map? Maybe Obama picking off some states in the south, the interior west. John McCain, maybe you put it out, Michigan and New Jersey.

HALPERIN: I think Michigan and New Jersey are good possibilities for McCain. Look, other people have made this point as well. This election could be really close or it could be a landslide in either direction. That's what makes it so unpredictable.

You can get a list of a dozen states even that have been won by Republicans that Obama is going to try for. Same with McCain. At this point Obama probably in theory at least has a few more opportunities. But he better not go looking too hard at those Republican opportunities without making sure he does hold down states like Michigan and Pennsylvania. The Democrats have won and that are absolutely critical for him.

HARRIS: Hey, Anne, who has the best chance of expanding their party's base?

KORNBLUT: Well, I think actually, at this point, Obama seems to have a lot of room to grow in that direction. Coming off with a really tough primary. And we'll see him at some point starts to really try and do that. I think it depends on how you define the base in each one.

And as Mark said, going to the center may wind up being more important for them.

HARRIS: Anne, Hillary Clinton at the National Building Museum on Saturday. What did you think of the speech?

KORNBLUT: Look, it was a hard moment for her supporters. We saw a lot of tears there. But at the end of it, we heard from a lot of Democrats who had been disgruntled in the days beforehand that they were satisfied with it. That she hit all the right notes and that they were glad to hear her finally do it.

HARRIS: Mark?

HALPERIN: She's on the right trajectory. That was a great first step. I think the bigger moment is going to come when they stand side by side probably in the next couple weeks and campaign together.

One, her supporters will get a sense, is her heart really in it? I think she's been a very effective surrogate for Obama already in the two times she's spoken in this new context.

But the other thing is, when they stand side by side, the challenge is going to be to not let that expectations about they are being a ticket get back out of control.

HARRIS: Yes. Let me see if I can squeeze one more in here. Anne, the idea from John McCain, a proposal for town hall-style debates. Do you like the idea and do you love the fact that McCain didn't just sort of slap it away and rule it out of hand?

KORNBLUT: Well, he didn't. This is not an idea that McCain invented. And I'm sure we're going to see Obama at some point participate. I don't know if he'll be able to push this too far, though, by you know having an empty chair on stage if Obama doesn't jump to the first opportunity to do it. But we're going to see them in a town hall setting. I have no doubt about it.

HARRIS: And Mark, what are your thoughts on this?

HALPERIN: I think it would be great for democracy. The more, the better and the sooner, the better. I think the Obama campaign has shown an incredible talent sometimes of saying yes, we're interested in something, but then slow-walking it and not actually making it come to bear. We'll see if McCain can put pressure on. Maybe the empty chair, maybe some other techniques to try to get this thing to actually start gearing up.

HARRIS: Anne and Mark, great to see you. Thanks for your time this Monday morning.

KORNBLUT: Thank you. HALPERIN: (INAUDIBLE).

COLLINS: Once high school sweethearts. After marriage, she said he cheated on her.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: When I confronted him, he started beating me. The worst was when he hit me with a glass on the head. It cracked my skull. There was blood all over the place.

(END VIDEO CLIP)

COLLINS: A victim of domestic abuse learns to help herself and others like her.

(COMMERCIAL BREAK)

COLLINS: Massive explosions in China's earthquake zone. Soldiers now using anti-tank weapons and explosives in huge lake formed on last month's quake. They're trying to splash away rocks and mud hoping to speed up the drainage of the so called quake lake, before an unstable dam breaks.

The water is rising fast despite a spillway built by engineers to release pressure on the dam. If the dam breaks, floodwaters could threaten more than a million people living downstream. About 250,000 have already been evacuated.

HARRIS: A victim of abuse, a woman learns to stand up for herself and others like her.

CNN's Arwa Damon has the story from Indonesia.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT (voice-over): She calls it one of the most important moments in her life. Isma's graduation, but her husband wasn't there.

ISMA, DOMESTIC VIOLENCE SURVIVOR (through translator): He didn't like it when I graduated. He even through my graduation statue on the ground.

DAMON: As she describes it, their 22 years together turned into a living nightmare.

The two were high school sweethearts, but two years into the marriage, she says he became a monster.

ISMA (through translator): He was having an affair with someone and that worsened the relationship between us. When I confronted him, he started beating me. The worst was when he hit me with a glass on the head. It cracked my skull. There was blood all over the place.

DAMON: Scared, confused, and ashamed of the social implications, she carried the burden alone.

ISMA (through translator): I have the worst faith in my family. I was depressed. He left me with little children. And they all needed money for school. And I didn't have a husband and I was so worried about my children's future. And then I started thinking that I have to wake up, stand up, fight, that I can't stay crying all day.

DAMON: And fight she did. Along with other women, like Kamala, who now heads the government's National Commission on Violence Against Women. In 2004 against the odds, they got parliament to pass a domestic violence law, and the number of cases reported quadrupled.

KAMALA CENDRAKIRANA, INDONESIAN COMMISSION ON WOMEN'S RIGHTS: By passing that law, more and more women actually felt more brave to report their cases.

DAMON: Doctors say many of the victims suffer from depression and thoughts of suicide.

DR. SURYO, PSYCHIATRIST (through translator): Domestic violence becomes a cycle. Women are confused as to whether they have to run away or live in a cycle of violence.

DAMON: That was the case for Isma. But the victim is now the activist.

ISMA (through translator): There's no use for me to have regrets. Out of everything that happened, the feeling that I have now is how I can support others so that they don't go through what I went through and get beaten down. They have to stand up.

DAMON: Isma is a school teacher and she tries to incorporate that concept into her daily classes so she can educate these young minds about the laws that protect them from domestic violence. She said it's the most important life lesson she can pass on to them.

Arwa Damon, CNN, Jakarta.

(END VIDEOTAPE)

COLLINS: Not just getting squeezed at the pump. You're feeling the pain in the check-outline, too. Our tips can help you save on groceries.

(COMMERCIAL BREAK)

HARRIS: In Texas today, federal investigators and local fire officials are looking for the person who may have started the blaze at the governor's historic mansion. It happened yesterday. The fire severely damaged the 152-year-old building which was being remodeled.

The part of the roof actually collapse. No one was in the building when the fire happened.

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

HARRIS: And I'm Tony Harris. You will stay informed all day in the CNN NEWSROOM. Here's what's on the run down.

Watching the prices on Wall Street and on your street. You told us issue no. 1 is the economy and we will tell you some ways to survive.

COLLINS: The president says one solution to the oil crisis is drilling in an Arctic refuge. Would it help?

HARRIS: And another scorcher for the East Coast that tripled digit hit index and it is not even new. Today, Monday, June 9th, you're in the CNN NEWSROOM.

Boy, oh boy, from gas to groceries. Prices are climbing. Your paycheck seems to be shrinking. CNN takes a day long look at issue no. 1 and how to fend off the latest assaults on your wallet.