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American Morning

First Full Day of President Bush's Farewell European Tour; Senator Ted Kennedy is Back Home; Feud Between Clint Eastwood and Spike Lee; Gasoline Prices Hit a New Record this Morning; Shocking Marketing for Singer Ashanti's New Album; First Lady Laura Bush's Visit to Afghanistan

Aired June 10, 2008 - 08:00   ET

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


SEN. CLAIRE MCCASKILL (D), MISSOURI: And we do not take any money from packets or from federal lobbyists, unlike the McCain campaign who welcomes those donations. So this is really about a different kind of Washington. This is about a different kind of campaign.
This isn't about getting in for the tit for tat. This is about focusing on Americans who are hurting, realizing that John McCain's policies, which are George Bush's policies, are not going to be the medicine that are country needs right now.

JOHN ROBERTS, CNN ANCHOR: Senator Claire McCaskill for us this morning. Senator, good to see you. Thanks for coming in.

MCCASKILL: Thank you.

KYRA PHILLIPS, CNN ANCHOR: And just crossing at the top of the hour. A check of our top stories.

Senator Barack Obama's campaign continues secret meetings to find a running mate. Two members of his vice-presidential search team met privately with Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi.

Top House and Senate Democratic leaders said that the discussions were, quote, "Good and long and a lot of names were mentioned."

Former White House Press Secretary Scott McClellan will testify before a House Committee next week to answer questions about accusations that he made against the Bush administration involving the CIA leak scandal in his new bombshell tell-all. McClellan suggests that senior White House officials may have obstructed justice and engaged in a cover-up.

And Barack Obama not the only candidate addressing the economy. Today, we're now less than 90 minutes away until John McCain speaks about his proposal to help boost small businesses.

Dana Bash live in Washington with the preview.

Hey, Dana.

DANA BASH, CNN CORRESPONDENT: Hi, Kyra. And you know, John McCain actually laid out his economic plan back in April while the Democrat's race was red hot. But what's new now, of course, is that John McCain knows who his Democratic opponent is. So what we'll hear from McCain later this morning is an attempt to contrast his ideas with Barack Obama's.

Paint Obama as a typical Democrat who wants to raise taxes and regulate government. I'll read you an excerpt of what we'll hear from Senator McCain here in Washington just in a short while.

He will say "Will we enact the single largest tax increase since the second world war as my opponent proposes. Or will we keep taxes low for families and employers. This election offers Americans a very distinct choice about what kind of change we will have."

Now, McCain spends a lot of time, of course, casting himself as a different kind of Republican. But on the economy he really has a classic Republican approach. And today, McCain will really try to offer a stark contrast with Obama on everything from free trade to eliminating the estate tax.

Kyra?

PHILLIPS: All right. Dana Bash, thanks so much.

John?

BASH: Thank you.

ROBERTS: It's the first full day of President Bush's farewell European Tour and the focus today ratcheting up pressure on Iran. Right now, the president is meeting with European Union leaders in Slovenia. We're awaiting a press conference in about a half an hour.

White House correspondent Elaine Quijano traveling with the president. She joins us live from Ljubljana this morning.

Elaine, does the president expect to get any kind of consensus on increasing pressure on Iran today?

ELAINE QUIJANO, CNN White House CORRESPONDENT: It certainly looks that way, John. Iran, as you know, John, really tops the list of issues on President Bush's agenda here in Slovenia. The president is essentially looking for backing from the European Union to increase the pressure, as you said, on Iran over its nuclear program.

That means the possibility of the threat of more sanctions against Iran. Now, Tehran continues to insist that its nuclear program is for peaceful civilian purposes only. But of course the United States and other countries are deeply skeptical of that.

We're likely going to hear more about this very issue coming up at this hour. A news conference scheduled to take place about 30 minutes from now, John. We're also anticipating that President Bush will likely make mention of the economic difficulties back home in the United States. Talking about how trade, the issue of trade fits in with how he thinks the economies worldwide can be boosted. John?

ROBERTS: All right. We'll be looking forward to that press conference. Elaine Quijano in Ljubljana, Slovenia this morning.

Kyra?

PHILLIPS: And new this morning, a security agreement between U.S. and Iraqi forces may be complete by next month. That's according to the State Department's lead negotiator. Under that plan, American forces will be able to legally remain in Iraq even after a U.N. mandate expires at the end of the year.

Also, North Korea says it's committed to fighting terrorism and nuclear disarmament in an apparent attempt to get its name off a U.S. black list. A senior U.S. State Department official is in the region today holding meetings with North Korean negotiators about work currently under way to disable activities at the communist state nuclear plant.

And China's so-called quake lake is no longer a danger. The Chinese government now says enough water has been drained from that lake. And as you saw right here on AMERICAN MORNING, crews used artillery to blast holes and release that water before the unstable dam had a chance to give way. It formed after last month's massive earthquake.

ROBERTS: Also new this morning, Senator Ted Kennedy is back home before beginning chemotherapy and radiation at Massachusetts General Hospital this week. And he told reporters that it was good to be home.

(BEGIN VIDEO CLIP)

SEN. TED KENNEDY (D), MASSACHUSETTS: Good to see you. Happy to see you. Glad to see you all.

(END VIDEO CLIP)

ROBERTS: Kennedy and his wife, Vicki, went sailing hours after he came home. The chief surgeon at Duke University says the 76-year- old Senator is, quote, "Making an excellent recovery after undergoing risky brain surgery a week ago."

New concerns this morning about the safety of the nation's blood supply. The American Red Cross hit with a nearly $2 million fine after an FDA review found red blood cells being cleaned improperly and then given to patients in transfusions. "The Washington Post" citing incidents back in 2006. And also last year, The Red Cross says violations did not put any patients in danger.

McDonald's, Burger King and Taco Bell said they will stop serving sliced tomatoes in all of their sandwiches after a 16 state Salmonella outbreak. The CDC says at least 145 people have been infected since mid-April. Wal-Mart and other grocery store chains are no longer selling red plum, Roma and round red varieties until the source of the outbreak is identified.

PHILLIPS: Some good news on the crime front this Tuesday morning. Violent crime down across the country for the first time in three years. An FBI report says that overall violent crime dropped 1.4 percent last year in major cities with more than a million people showed the most significant drops in murders, robberies and assaults.

Preliminary figures also show that fewer personal property crimes and arsons are taking place. But plenty of criminals continue to commit violence, even in the courtroom.

Cameras rolling when a convicted felon charged with murder, boom, turns around and just knocks this man out in a Miami court. Mitchell Lee Simpson had just been denied bail. He obviously was a little upset and just decided to slug the man behind him. Authorities not saying if he will face additional charges for that attack.

ROBERTS: Wasn't that guy's fault, it was just his turn, I guess.

PHILLIPS: Court rage.

ROBERTS: The high price of gasoline hits Americans in their pocketbook. How are you coping? Results from a new CNN poll. We'll have them for you just ahead.

Extreme weather and extreme damage. Homes ripped apart and washed down the river. The pictures in places where nature could turn nasty today.

And two Hollywood heavyweights battling it out. The feud between Clint Eastwood and Spike Lee. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

PHILLIPS: I guess price is forcing Americans to change their spending habits.

Ali Velshi, here to just lay it all out for us.

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes. We've been talking about this, we know, from the auto sales. We know from changes in the way people travel. That these high gas prices have resulted in the way we do things. But we've got a new poll. The CNN Opinion Research Corporation Poll asking people about their feelings about gas.

First of all, where do you think gas is going? 59 percent of you think it's likely, very likely that gas will hit $5 a gallon. This year worth $4.04 today. 27 percent of you think it's somewhat likely. Only 13 percent think it is not likely that gas will hit $5 a gallon.

Now, has the price of gas made you cut back on your household spending? 55 percent of you say yes, 44 percent of you say no. We also asked has the price of gas made you cut back significantly on your driving? We do have other evidence that this has been the case. And this actually bears out in the poll. Two-thirds of you are saying you cut back on your driving significantly compared to only 33 percent of you who have not. And maybe those 33 percent of you who have not is because you can't. You drive a great distance to work.

We've also asked, has the price of gas made you consider getting a more fuel efficient car. It's a bit of a gimme (ph). 71 percent of you has said, yes. The issue here of course is that considering getting a more fuel efficient car and actually getting one are two different things.

In some cases if you drive a big fuel inefficient car, an SUV or truck, you're going to have trouble unloading it. The market for big gas guzzling vehicles is not fantastic right now.

So you have to weigh the options against do I sell this, take a bath on it, buy a fuel efficient car. How long will it take me to make that cost up? Well, as gas prices continue to go up that decision might be easier for you.

ROBERTS: You know, if you look at a smart car these days, and it looks as appealing as an Escalade.

VELSHI: Oh, remember, two years ago, when it was like sort of only, kind of weird (INAUDIBLE) people had those kinds of things. And now you're looking --

ROBERTS: That's cool. That's a smart person.

VELSHI: That's where I want to be.

PHILLIPS: Can you give me a little Clint Eastwood.

VELSHI: About what?

PHILLIPS: Go ahead, punk -- can you give me something? A little something to make my day.

VELSHI: Go ahead, make my day.

PHILLIPS: OK. Beat that John Roberts.

I couldn't get -- I'm getting a big week. The control room given a big week.

ROBERTS: I could sing "Over the Rainbow," but I couldn't beat that. Come on. What are we talking about here?

PHILLIPS: I'd like to hear that, actually.

ROBERTS: I'm sure you would. Spike Lee calling Clint Eastwood an angry old man. This is where all this is headed. Clint Eastwood says that Lee should just shut his face. We'll tell you why a war movie is behind this war of words. Coming up. Destructive flooding in the Midwest to tell you about. Homes washed away by rising waters. Our Rob Marciano, tracking extreme weather for us this morning.

Hey, Rob.

ROB MARCIANO, CNN METEOROLOGIST: Hey, John. You hate to see that if that was your home. Dramatic video out of Wisconsin. Flood warnings there across many states and record-breaking heat again across the Northeast. When is it going to cool down? Complete forecast when AMERICAN MORNING comes right back.

(COMMERCIAL BREAK)

(WEATHER REPORT)

ROBERTS: We will do our best. Rob, thanks so much.

CNN is traveling the world again for a follow-up to our Planet in Peril series. One of the critical issues that we zeroed in on was the illegal trade in wildlife and its impact on the planet. It's a $10 to $20 billion a year industry, ranks just behind the trade in illegal weapons and drugs.

Actress Bo Derek is one of many celebrities trying to raise public awareness of wildlife trafficking. Earlier on AMERICAN MORNING, I asked her what the average person can do.

(BEGIN VIDEO CLIP)

BO DEREK, ACTRESS: Don't buy it. A lot of Americans when they're traveling will buy something, and certainly the person selling you the product, whether it's a bauble out of tortoise shell, still elephant ivories being sold overseas. Just don't buy it. A lot of reptile hides are in danger. Reptiles are in danger. And things are still being sold all over the world out of these products.

(END VIDEO CLIP)

ROBERTS: Bo Derek is playing an important role in this fight. She is the special envoy to the Secretary of State for Wildlife Trafficking issues.

PHILLIPS: So, you're watching "Most News in the Morning." Actress Gina Gershon fires back speaking for the first time after a "Vanity Fair" article linked the star to former President Clinton. Hear what she's saying.

ROBERTS: Coming up on AMERICAN MORNING, face off.

(BEGIN VIDEO CLIP)

CLINT EASTWOOD, ACTOR: Go ahead. Make my day.

(END VIDEO CLIP) ROBERTS: How two top directors got in a war of words over World War II? Clint Eastwood drops a bomb on Spike Lee, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: It's 18 minutes after the hour. Two of Hollywood's biggest stars are going to war over their war movies.

Our Brooke Anderson with the "Most News in the Morning" on the feud between Clint Eastwood and Spike Lee.

(BEGIN VIDEOTAPE)

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT (on camera): John and Kyra, it's a war of words about the depiction of war. Director Spike Lee and Clint Eastwood at each other over race and history on film.

ANDERSON (voice-over): He's known for tough talking.

CLINT EASTWOOD, "DIRTY HARRY": Go ahead. Make my day.

ANDERSON: He's known for hard-hitting films.

DENZEL WASHINGTON, "MALCOLM X": We didn't land on Plymouth Rock. Plymouth Rock landed on us.

ANDERSON: Now, Clint Eastwood and Spike Lee, two of America's most respected directors, have gone after each other in an escalating verbal battle. "A guy like Spike should shut his face" and "Clint sounds like an angry old man" are just two of the barbs tossed at each other.

It all began at the Cannes Film Festival, where Lee, promoting his upcoming World War II film about black soldiers, criticized Eastwood's movies -- "Letters from Iwo Jima" and "Flags of our Fathers" for failing to depict African-American soldiers.

Kirk Honeycutt of "The Hollywood Reporter" believes the criticism is unfair.

KIRK HONEYCUTT, CHIEF FILM CRITIC, "THE HOLLYWOOD REPORTER": One movie was about flying the flag at the top of Iwo Jima -- "Flags of our Fathers." And those characters were all white save for one Indian character whose cast that way. This was about people who are largely white.

The second movie, "Letters from Iwo Jima" was about the Japanese Army. And I don't think the Japanese Army had any black soldiers in it.

ANDERSON: Eastwood, who after explaining the films were historically accurate, advised Lee to, quote, "Shut his face." Lee then blasted Eastwood through abcnews.com hinting at racism, quote, "The man is not my father and we're not on a plantation. He sounds like an angry old man."

Mark Sawyer, Director of the Center for the Study of Race, Ethnicity and Politics at UCLA asserts Lee's take on Eastwood's films has merit.

MARK SAWYER, DIRECTOR, UCLA: It's a fair criticism in general about films about World War II and American wars in general. Clint Eastwood's films was sort of bearing the burden of hundreds of films about World War II that have ignored the presence of African-American troops.

ANDERSON (on camera): Lee and Eastwood both declined requests for interviews. Eastwood's representative tells CNN he was not misquoted but has nothing more to add.

Lee told abcnews.com, quote, "I'm going to take the Obama high road and end it right here."

John?

Kyra?

(END VIDEOTAPE)

ROBERTS: Brooke Anderson this morning. What a feud that is, huh?

PHILLIPS: Well and we'll be following it. That's true. We're trying to actually book that. So we'll see what happens. Actress Gina Gershon speaking out for the first time after a "Vanity Fair" article linked Former President Clinton to the actress. Appearing on "Regis and Kelly," Gershon called the article, quote, "Crazy, outrageous lie."

(BEGIN VIDEO CLIP)

GINA GERSHON, ACTRESS: It is such a crazy, outrageous lie that really has nothing to do with me at the end of the day, you know? It's more --

UNIDENTIFIED MALE: Do you even know him? Is he a friend of yours or --

GERSHON: I have met him three times, you know, at events at the White House or, you know, different places. But the thing is, you know, you're so used to celebrity gossip and people always say stuff. It's like, whatever, it's part of, you know, the world. You needed to deflect what's really going on with things.

UNIDENTIFIED FEMALE: But this somehow seems serious.

GERSHON: This disturbed me on so many other levels that I kind of felt like I had to stand up for myself.

(END VIDEO CLIP)

PHILLIPS: So far "Vanity Fair" has shot down calls from Gershon's reps who retract its July cover story.

ROBERTS: Have you ever wondered what God finds funny? Our next guess Deepak Chopra explores the topic in his new book and he joins us, coming up next.

Coming up on AMERICAN MORNING -- born again.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Democrats have gotten religion. The Republicans have turned agnostic.

(END VIDEO CLIP)

ROBERTS: Why the key battleground might not be Florida or Ohio.

(BEGIN VIDEO CLIP)

OBAMA: Democrats need to get in church.

(END VIDEO CLIP)

ROBERTS: Religious warfare ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

PHILLIPS: Coming up on AMERICAN MORNING, dancing with the first lady. A toe tapping, knee slapping good time.

Jeanne Moos gets out her dance card and looks at an unusual new craze, ahead on AMERICAN MORNING.

So let me ask you, when is the last time that you smiled for no apparent reason? How about bursting out in laughter. If you can remember that moment, you'll probably recall it felt pretty good.

And our next guest, best-selling author Dr. Deepak Chopra, tells us that laughter is the healthiest response to life even in the face of fear, sadness, insecurity.

Deepak's new book is "Why is God Laughing?: The Path to Joy and Spiritual Optimism."

Good morning.

DR. DEEPAK CHOPRA, AUTHOR, "WHY IS GOD LAUGHING?: THE PATH TO JOY AND SPIRITUAL OPTIMISM": Good morning, Kyra.

PHILLIPS: So why is God laughing.

CHOPRA: Well, God is that domain of our awareness, where we are all connected, where we feel love and compassion. We're willing to suffer with others. But the main thing is we also recognize that life is a paradox. Everything comes with its opposing energy -- joy and laughter, but there's also suffering. Birth, there's also death. Pleasure, pain. When our soul recognizes the paradoxes and contradictions of life, then it has no choice but laugh.

PHILLIPS: And you do something differently in this book. You write about this burned out Hollywood comedian. I'm taking it that's Mike Myers, your friend. And how this burned out comedian meets Francisco, this stranger that changes his life. I'm taking it that that's you.

CHOPRA: You're making this up.

PHILLIPS: Am I making this up. I'm assuming because you and Mike Myers have this great relationship. No. But why did you do it this way? Why did you write it like in a parable and write jokes and why this method?

CHOPRA: Because I wanted to reach a younger audience. People have this idea that seriousness is the hallmark of being spiritual. Everybody who we think of as spiritual is so serious. But seriousness is actually a sign of insecurity. It's a sign of being attached to your ego. It's a sign of self-importance. Truly spiritual people are joyous.

And their joyousness comes across. They see the humor even in difficult situations, because they are able to shift perception. When you're able to laugh like a child laughs. You know you said earlier when you're laughing for a reason or you're happy for a reason, it's just another form of misery. It can be taken away from you at any time.

But when you laugh like a child, for no reason whatsoever, then you're in bliss. You're in ecstasy. And when you do that, even your tears have different chemical constituents. The tears of laughter and joy are very different from the tears of sorrow. You make serotonin, dopamine, oxytocin, opiates. (INAUDIBLE) to your immune system, you're a much healthier person.

PHILLIPS: So you're saying if we don't get angry, we don't obsess about things, we don't act too serious, we don't let anxiety riddle our bodies. If we just laugh at ourselves, everything is going to be OK.

CHOPRA: You know, there's so much research on stress and it's deleterious effects. Now we're seeing the research on happiness and joy and laughter. And it's much more interesting.

PHILLIPS: Well, I definitely try to laugh at myself. My crew laughs at me constantly. It keeps me going. Right, guys? See, there it is. Now, this book actually comes out at a perfect time - "The Love Guru," starring Mike Myers. And let's just take a little clip at this and I want to ask you about this movie.

CHOPRA: OK.

PHILLIPS: OK.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Enlighten us.

UNIDENTIFIED MALE: Fate is a joke. And as I once read on a wall in a truck stop bathroom, the joke is in your hands. Oh, my God, I just got that.

(END VIDEO CLIP)

PHILLIPS: OK, is he making fun of you?

CHOPRA: He's trying to. He keeps saying that he's the second best in the world. He's got this hang-up that Deepak is the best. So I let him have it as if you can be number one.

PHILLIPS: You two have forged a pretty interesting relationship.

CHOPRA: Yes. Mike is a very --

PHILLIPS: He helped you with your joke telling. He's helped you to laugh more and you've done a lot for him as well.

CHOPRA: Yes. We actually, two of us, did improve theater in Greenwich Village a while ago. And we got a lot of laughs. I think I got a few more than he did. But he's very competitive, you know.

We've been good friends. Most people don't understand that he's a very serious scholar of eastern philosophy and actually knows a lot about it.

PHILLIPS: The Hindus were upset by this movie.

CHOPRA: I would say some Hindus were upset. And I only have one response -- if you're so upset about a joke, then you should be a little careful about what you believe in, because it could be a cover- up for insecurity.

You know, if you're really grounded in your faith, then you should be independent of the good or bad opinions of others. I don't think this movie is at all offensive to Hindus. If anybody should be offended, it should be me, because I'm the one who's being made to look ridiculous.

PHILLIPS: And you're laughing.

CHOPRA: And I'm laughing. This is the way to, I guess, get to your real self.

PHILLIPS: Well, if our spirit and our laughter can beat our ego then we've won.

CHOPRA: Absolutely.

PHILLIPS: Dr. Deepak Chopra, so good to see you. Once again, the book, "Why Is God Laughing?" Thanks so much. CHOPRA: Thank you.

PHILLIPS: John?

ROBERTS: It's just about 30 minutes after the hour now, Kyra. Here are some of the top stories that we're following right now.

Gasoline prices hit a new record this morning. About $4.04 a galloon according to AAA. 23 states plus Washington, D.C. now have average prices of above $4.

Danger averted, so says Fed Chairman Ben Bernanke, predicting that the economy may avoid a quote, "Substantial downturn." At a conference last night, Bernanke also said that despite the big jump in unemployment, other factors should offset the impact of high gas prices and a jump in jobless numbers.

We're expecting a press conference in just a few minutes with President Bush, who is in Slovenia this morning, on his farewell European tour. The president met today with leaders of the European Union on several issues, including Iran. They are expected to warn Iran that it could face harsher sanctions if it doesn't abandon its nuclear program.

Barack Obama is going after John McCain after the economy. He's in St. Louis, this morning. It is the second stop on his 11 state tour which is focusing on your money.

CNN's Jessica Yellin, has more for us now, from Washington.

(BEGIN VIDEOTAPE)

JESSICA YELLIN, CNN CORRESPONDENT (voice-over): Barack Obama on the economy.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: It is time to try something new. It is time for a change.

YELLIN: In his first policy speech of the general election, the presumptive Democratic nominee, repeatedly tied opponent to George Bush, whom he mentioned 15 times.

OBAMA: Senator McCain wants to turn Bush's policy of too little, too late, into a policy of even less, even later. The center piece of John McCain's economic plan amounts to a full throated endorsement of George Bush's policies.

YELLIN: He charged McCain with flip-flopping. Once opposing, now supporting Bush's tax cuts. And he accused McCain of supporting policy that would give the oil conglomerate EXXON Mobile, $1.2 billion in tax breaks.

OBAMA: That isn't just irresponsible, it's outrageous.

YELLIN: The McCain campaign fired back, insisting Obama doesn't understand the economy, has repeatedly voted to raise taxes and is making claims that cannot be verified because quote, "there are not enough specifics."

OBAMA: A week from today, I'll be talking about this long-term agenda in more detail.

YELLIN: He did outline a number of short-term proposals including a $50 billion economic stimulus package, in part to extend unemployment benefits. And created a $10 billion fund to help folks facing foreclosure. A mostly voluntary health care program that would lower premiums to $2,500 for the average family. A middle-class tax cut to about 95 percent of Americans. A windfall profits tax on oil companies. And a $4,000 a year college tuition credit for students who volunteer after graduation.

Obama is taking this pitch to battleground states over the next two weeks.

(on camera): And the newest proposal of all, Barack Obama is suggesting another round of rebate checks, $20 billion worth. He says it will help struggling Americans and he's like to see that enacted immediately.

Jessica Yellin, CNN, Washington.

(END VIDEOTAPE)

Defense secretary Robert Gates, named a new leadership to lead the Air Force yesterday. And now he's on a tour designed to mend fences with the Air men and women.

CNN senior Pentagon correspondent, Jamie McIntyre, is the only television correspondent traveling with Gates -- Jamie.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: John, Kyra. On day two of his morale mending tour, defense secretary Gates brought his tough love here to Colorado Springs, home of the Air Force academy.

(voice-over): Gates' voice seemed to quiver as he delivered a heartfelt message to separate gatherings of Air men at key bases across the U.S. That he's not picking on the Air Force and he feels their pain.

ROBERT GATES, DEFENSE SECRETARY: The Air Force is my service, the uniform I wore more than four decades ago.

MCINTYRE: Almost as evidence of his empathy, Gates offered up a surprise gift that addressed one of the services' biggest complaints. It doesn't have enough people.

GATES: I intend immediately to stop further reductions in Air Force personnel.

MCINTYRE: That means instead of trimming the Air Force from 340,000 troops to 316,000 by the end of the decade as planned, the cuts will end now while there are still more than 330,000 active duty Air men.

Gates is also engaged in rumor controls, insisting his sacking of the Air Force secretary and chief of staff was only because of sloppy nuclear security, not a broaded indictment of the service and its mission.

And the new chief, General Norton Schwartz, was picked Gates said, because of his experience in special operations and his record of working with the other services.

(on camera): Asked what priorities the Air Force leader should have. Gates said job number one was fixing the problems with nuclear security. Then comes modernization. He noted some of the tanker planes now in service, are the same ones he flew as a young Air Force lieutenant -- John, Kyra.

(END VIDEOTAPE)

ROBERTS: All right, Jamie McIntyre, this morning.

PHILLIPS: And Alina Cho now, with other stories here this morning. Good morning to you.

ALINA CHO, CNN CORRESPONDENT: Good morning again, guys.

Good morning everybody. And new this morning, big oil could be facing a new windfall tax. A vote is expected in the Senate today. Senate Democrats are in favor of the tax on the five biggest U.S. oil companies. And also want to take back $17 million in tax breaks. Republicans oppose the plan.

I just a couple of hours, the hatches will close between the International Space Station and the shuttle Discovery. During the mission, the shuttle's crew installed a new Japanese science lab for the station. And fixed a broken toilet. Discovery will undock tomorrow and land in Florida on Saturday. If mother nature cooperates. Hitching a ride home? Astronaut Garrett Reisman, he's been aboard the station since March. He'll be happy to be home.

And faster, better and cheaper. That's what apple is saying about its new version of the iPhone, which CEO, Steve Jobs, unveiled yesterday. That's when we first told you about it. The new iPhone will download twice as fast as the older one and cost $199. Some of that savings could be erased by higher monthly service charges.

I actually went on the web site guys, and looked at it. And it does look thinner, it does look lighter. It says starts at $199. Starts at, there's the key right?

PHILLIPS: Here's the key. It could go up to probably hundreds more.

CHO: Yes, yes, yes, yes. Anyway, and if you're wondering just how popular the iPhone is, here's an AM Extra, Steve Jobs says the company has sold 6 million phones since the launch last summer.

Remember when it cost $599?

In the last two months, Apple still sold 7,000 iPhones even though many people were waiting for the new version. But it's still not close to its big target, the Blackberry. There are currently 14 million Blackberry users. Research in Motion, the company that makes the Blackberrys, sold more than 4 million of the smart phones in the first three months of this year. And Steve Jobs just says, his goal is to sell 10 million iPhones by the end of 2008. We'll have to see if this new versions helps. It most certainly will at $199. But again, remember, it starts at $199 and can go much higher.

And anyway, new clues this morning that exercise will help more than just your waistline. Researchers say it can also help prevent drug and alcohol addiction. Researchers say, women who smoked were twice as likely to kick the habit if they exercised at least three times a week. They also gained half as much weight. Similar results were found in a study of teens and tween -- the new buzz word for people on the cusp of being teenagers.

PHILLIPS: I can't keep up with all the terms.

CHO: Yes, I know.

PHILLIPS: For different generations, different labels.

CHO: It's so Gen Y, Gen B.

PHILLIPS: See, there you go. Thanks Alina.

CHO: You bet.

PHILLIPS: We're waiting to hear from the president, correct?

ROBERTS: We are. Yes, they're just starting a press conference there in Slovenia. The area where they had this European Union summit. It's about 20 miles northwest of the capital city of Ljubljana. Who you're seeing on stage there, President Bush, as well as Prime Minister Janez Jansa, who is the Slovenian prime minister, also serving as the current president of the European Union council. And Jose Manuel Barroso, there on the end, who is the president of the European Commission.

We'll keep following this for you. As soon as President Bush starts to talk, we'll bring you some of that -- Kyra.

PHILLIPS: And meanwhile, R&B singer Ashanti, getting attention today. Not for her new album, but for its promotion. From threatening e-mails to fake murders, is it the right kind of attention. We're going to take a look, coming up.

Also, Bill Clinton, a controversial figure in his wife's campaign, no doubt. Can he stay on message for Barack Obama in the general election? Yes, we'll talk about it straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK) JAY LENO, ENTERTAINER: I heard today that Hillary Clinton has been racing all over Washington, D.C. Not because she's in a hurry. She just wants her name on some kind of ticket, you know.

ROBERTS: Well, it remains to be seen if Hillary Clinton will be running side by side with Barack Obama. But what about Bill Clinton? Is there a place for the former president in the fall campaign?

CNN's Brian Todd, has more for us in Washington.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (on camera): Good morning, John and Kyra.

You know, the Democratic Party is full of talk about unity these days. But Bill Clinton's role is still an uncertain one, thanks to the bumps and bruises of the primary season.

(voice-over): Just two days after his wife gave up the bid he campaigned so hard for, Bill Clinton is at the United Nations for a meeting on stopping the spread of AIDS.

BILL CLINTON, FMR. PRESIDENT OF THE UNITED STATE: Secretary general, it's good to be back at the U.N.

TODD: But will there be a role for him in the rest of the presidential campaign? For months he spoke to thousands of Democrats, campaigning vigorously for his wife.

CLINTON: You will never have a chance to vote for someone who cares more, who has done more and who will do more as president.

TODD: Sometimes bruising feelings of Barack Obama supporters along the way. Like when he said Obama's early opposition to the war was being exaggerated.

CLINTON: Give me a break. This whole thing is the biggest fairy tale I've ever seen.

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: He will need to say some things along the way that show that he appreciates that in his ardor and his enthusiasm for his wife, he may have gone over the line a few times and he regrets that. You know, that's going to help a lot.

TODD: His admirers say he is a skilled campaigner, a foreign policy heavyweight and reminder of good economic times. But he can also veer off message.

JOE KLEIN, "TIME" MAGAZINE COLUMNIST: There may be places he can help Obama, like Arkansas, for example. But I would expect that given his tendency to pop off, Clinton now is not a very safe bet.

TODD: Al Gore kept him at arm's length during the 2000 race. But so far, kind words from Barack Obama. SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I think Bill Clinton is an enormous talent and I would welcome him campaigning for me.

TODD: If Obama's team gives the former president a prime speaking slot at the August convention, that could be one sure indication they will tap him to campaign for them.

(on camera): And there's at least one very good fit in that arrangement. Analysts point out Bill Clinton really hit home with lower income white Americans who benefited from his years as president. And that's an area where Barack Obama needs some shoring up.

John and Kyra, back to you.

(END VIDEOTAPE)

ROBERTS: All right, Brian Todd, this morning.

In 2000 Al Gore kept him at arm's length, we'll see what Barack Obama does.

PHILLIPS: Coming up on most news in the morning, Barack Obama going right after religious voters. And John McCain trying to win them over as well. We're going to look at each campaign strategy.

R&B singer Ashanti, has a new album. But it's the marketing that's getting all the attention. Violent images designed to shock and scare fans. Does it go too far? That's next on the most news in the morning.

(COMMERCIAL BREAK)

PHILLIPS: Well, some tough press around singer Ashanti, this morning. Threatening e-mails, fake murders, all part of the promotion for singers Ashanti's new album. And it's working, people are paying tension. But is it the right kind for an artist known as the good girl.

AMERICAN MORNING'S entertainment correspondent, Lola Ogunnaike, got one of these so-called got you grams. She joins us live. And you were -- I mean that shocked me reading what you received.

LOLA OGUNNAIKE, CNN CORRESPONDENT: Kyra, it shocked me yesterday. I was freaked out when I got this on my Blackberry.

It said: "Dear Lola, do you know the person Brian, pictured in the video. If so, please contact me immediately. Your life may be in danger. Best, Detective James Nicholas, director of crime prevention, Universal Crime Network," and there's a phone number here.

Naturally I'm thinking to myself, what is this. I mean, when someone says your life is in danger, you don't take that lightly. I click on this link, it takes me to a fictional news report about a string of murders that have been inspired by Ashanti's latest video. PHILLIPS: Is this it right here? Is this where it takes you to?

OGUNNAIKE: Yes.

PHILLIPS: OK.

OGUNNAIKE: Looks eerily familiar to something that we run on our network, doesn't it?

PHILLIPS: Do we know what happens when you call the phone number?

OGUNNAIKE: When you call the phone number, you actually get a voice message from Ashanti, thanking you for supporting her new album.

PHILLIPS: So, when you clicked on and you saw this and then also you called the number, were you mad? Were you, I mean -- did your -- I mean your heart was probably thumping.

OGUNNAIKE: I was obviously outraged. Because there's one segment actually, in this video, it takes you to the latest crime scene, which is a bathroom. And the words "Lola will die," are written in what appears to be blood on the bathroom wall.

It turns out that this entire thing is a colossal hoax. I mean, you can go to her web site and download one of these Gotchagram, send them out to your friends or the lover who scorned you. You can put his name -- his or her name, the state where they're from, your weapon of choice. I mean, they give you anything from a knife to a guillotine, like everyone has a guillotine just lying around. And yes, and the type of murder. And the reason why you're going after them. Maybe because they cheated to you or lied about you or lied on your, maybe because they just weren't faithful.

Can you believe this?

PHILLIPS: But she's known as the good girl of hip-hop, though. So, what is this? Is this just people around her making not very good decisions? I mean, and is it going to backfire?

OGUNNAIKE: Yes. This is supported by her label. If you go to her web site you can download this Gotchagram. So, she's behind this, which is really surprising because she has always been one of the good girls. It'd be one thing if this came from say, a Lil' Kim or a Foxy Brown, or some unknown rapper...

PHILLIPS: You don't expect it from her.

OGUNNAIKE: Yes, unknown rapper trying to make a name for himself. But this is Ashanti.

PHILLIPS: Well, we'll see what happens. We'll monitor and see how that CD does and if this has any backlash on her.

OGUNNAIKE: I definitely think they'll have a backlash.

PHILLIPS: Thanks, Lola -- John.

ROBERTS: Just turning forty-eight minutes after the house, CNN NEWSROOM just minutes away now. And Heidi Collins is at the CNN center with a look at what lies ahead. Good morning, Heidi.

HEIDI COLLINS, CNN ANCHOR: Good morning, John. That's right, we have these stories coming up in the NEWSROOM rundown this morning.

Homes ripped from their foundation, carried off by a furious current. Look at that. Wisconsin engineers see if they can restore what floodwaters took away.

And the economy, ISSUE #1 for John McCain, next hour. We have the candidates talking tax reform at a small business summit.

Plus, a couple complains about airline service. They say the carrier didn't lose their luggage, it lost their son. We'll tell you that story and talk more about it.

Join us in the NEWSROOM coming up at the top of the hour right here on CNN -- John.

ROBERTS: Heidi, looking forward to it, we'll see you soon.

And let's go live now to Slovenia, where President Bush is making remarks at the EUUS summit there. They have agreed on some new sanctions against Iran, regarding banking and financial services.

Let's listen to the president.

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: We spent a lot of time talking about how to help others realize the blessings of liberty, whether in the Balkans, whether it be a Palestinian state, whether it'd be to use the EU as a way to encourage people to develop the habits of reformist societies.

And by the way, one subject we didn't spend a lot of time on that I'd like to clarify the U.S. position on is, we strongly believe Turkey ought to be a member of the EU. And we appreciate Turkey's record of Democratic and free market reforms, and working to realize this EU aspirations. We spent a lot of time on the Middle East, besides the Palestinian states. We talked about Lebanon, Iran and Syria. One thing is for certain. If more people lived in free societies in the Middle East, the Middle East would be a more hopeful and more peaceful place.

And so we strategized just how to do that, Mr. Prime Minister, and I want to thank you for that. I thank you for your support in Iraq and Afghanistan. It's amazing how these countries have gone from tyrannical situations to hopeful, young democracies. And I believe that it's in our mutual interests to work hard to help these democracies survive for the sake of peace and for the sake of human rights and human dignity.

We talked about Cuba. I want to thank very much your leadership, both of your leadership in having the EU summit in South America. Obviously it's in the U.S. interest that you do so. We got a lot of relations with countries in our neighborhood. I want to thank you very much for your expressions on Cuba. They said you know, before relations should go forward, all political prisoners ought to be free.

ROBERTS: President Bush, there speaking at the EUUS summit, just northwest of Ljubljana, the capitol of Slovenia. Next to speak will be Jose Manuel Barroso, who's the president of the European Union Commission. And the president will probably take a couple of questions.

The big news coming out of that summit, they have agreed on a call for tougher sanctions against Iran because of its nuclear program. Here's the operative phrase in the communication: "We will continue to work together, including through the financial action task force to take steps to ensure Iranian banks cannot abuse the international banking system to support proliferation and terrorism." So, putting the screws -- tightening the screws on Iran, in terms of banking and financial services, the funding of it's nations nuclear program.

Fifty one minutes after the hour. We'll be right back with more on AMERICAN MORNING.

(COMMERCIAL BREAK)

PHILLIPS: First Lady Laura Bush, visited with troops from New Zealand, as part of her trip to Afghanistan.

ROBERTS: It's not the first time in the Bush presidency that a dance turned into an awkward moment. We now have for you the Moos news in the morning.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Why doesn't the secret service stop this half naked guy in short shorts from charging at Laura Bush?

Hey, this is about as close as a first lady gets to her own personal lap dance. In Afghanistan all of places? All that slapping and thrusting, actually they're just welcoming her. The first lady was getting the royal treatment usually served up to the president.

You know, like the time he was surrounded by Massi warriors. The president is always being celebrated in such a way it would be almost impolite not to join in. Whether it be in Ghana or New Orleans or on the White House lawn. Or swaying with a sword. Well now, it was the first lady's turn. Think chippendales with spears.

Actually this was a = contingent of soldiers from New Zealand, doing a welcoming Haka (ph).

(on camera): Now the Haka may be thought of as a war dance, but look who's doing it these days? Most famously and all over YouTube, New Zealand's rugby team, the All Blacks and even gingerbread men in a bakery commercial. The Haka can include some vigorous tongue waggling, even a gingerbread man did it. At least they didn't subject the first lady to that. Laura bush displayed no fear, though she later admitted some to the guy in short shorts.

LAURA BUSH, FIRST LADY OF THE UNITED STATES: You kind of scared me with that whiplashing.

MOOS: You know, there's something about Haka that reminds me of something. There's something about the footwork.

(voice-over): Something about all that prancing and preening. Oh, yes, it's the mating dance of the emu.

Jeanne Moos, CNN, New York.

PHILLIPS: I thought more of the Nutcracker in ballet. But that's OK.

ROBERTS: You got to get the studio crew to get into the Haka.

PHILLIPS: We know they would, Kenny (ph) would.

ROBERTS: Yes.

PHILLIPS: Taught us how to hula hoop.

ROBERTS: Take you back to some more live pictures from Slovenia. President Bush at the EU summit. Jose Manuel Barroso, the president of the European Union Council, speaking right now. We're going to turn this over in a couple of minutes to our colleagues from NEWSROOM when President Bush takes some questions. We'll keep you in the loop in all this. AMERICAN MORNING comes right back.

(COMMERCIAL BREAK)

ROBERTS: That's going to do it for us. We'll see you again bright and early tomorrow. Thanks for joining us on this American morning.

CNN NEWSROOM with Tony Harris and Heidi Collins, begins right now.