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Killing Spree Suspect in Court; Jerusalem Bulldozer Rampage; Salmonella Investigation Expands Again; Starbucks Shutting Hundreds of Stores; High Gas Prices Blamed for Big Drop in Auto Sales; John McCain Wraps Up his Stop in Colombia Today; Japanese Cell Phone Ad Sending Shock Waves Around the World

Aired July 02, 2008 - 09:00   ET

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


TONY HARRIS, CNN ANCHOR: Naps are a good thing.
You are in the CNN NEWSROOM. Good morning, everyone. I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Hi there, everybody. I'm Heidi Collins.

You'll see events come into the NEWSROOM live on Wednesday July 2nd.

Here's what's on the rundown.

This man heading to court this morning. He is suspected in a killing spree that left eight people dead.

HARRIS: Street rampage. A man on a bulldozer mows down a bus and cars killing three people. Why did he do it?

COLLINS: They're not off the hook but a salmonella investigation moving beyond tomatoes today. We round up the usual suspects in the NEWSROOM.

A two-state killing spree. Eight people beaten to death. This morning a suspect is due in court.

Susan Roesgen in Granite City, Illinois this morning and that is where the suspect was arrested after an intense manhunt.

Susan, how did police finally track him down?

SUSAN ROESGEN, CNN CORRESPONDENT: Well, you know, basically, Heidi, they just followed the trail of the bodies from town to town to town. They figured in the end that he was here somewhere in the St. Louis area, and actually they got him smoking a cigarette outside of a bar in St. Louis last night. Now he's here at the police department in Granite City on a $10 million bond.

(BEGIN VIDEOTAPE)

ROESGEN (voice over): Whoever killed these people was desperate and had nothing left to lose.

That's what investigators say about Nicholas Sheley, arrested on a warrant charging him in one murder and he is suspected of seven more. Among the most recent killings, detectives believe Sheley used something as a weapon -- they won't say what -- to attack an Arkansas couple in Festus, Missouri. The husband and wife were in town for a graduation party. Detectives say Sheley beat them to death in their hotel parking lot. The couple's dogs attracted attention.

UNIDENTIFIED MALE: The customer of the hotel came in and found two dogs on the parking lot. Both dogs were covered in blood.

ROESGEN: In just one week, eight people were found murdered in what detectives say was a one-man killing spree, stretching nearly 300 miles. The first killing was in White Side County in Sterling, Illinois toward the north. The Festus, Missouri murders were near St. Louis to the south.

In Galesburg, Illinois, a man was killed behind this grocery store. A gas station clerk nearby says he spotted a man who looked like Sheley covered in blood.

Rock falls, Illinois. Three adults and one child killed in this small apartment. And in Sterling, Illinois, a 94-year-old man beaten to death, his body stuffed in the trunk of a car.

UNIDENTIFIED MALE: Guy's a nice old man. He didn't hurt anybody.

ROESGEN: The last time anyone saw Sheley was Monday night at the Bush Stadium where the Cardinals were playing in St. Louis. He was arrested not far from there in Granite City, Illinois with a $25,000 bounty on his head.

(END VIDEOTAPE)

ROESGEN: And here now this morning in Granite City we are expecting Nicholas Sheley to be arraigned this morning, make his first court appearance. We don't know yet, Heidi, whether or not he has a lawyer. We certainly don't know anything about a plea. We did not hear if he said anything to the police officers who arrested him. But we do know that they were very eager to get him last night -- Heidi?

COLLINS: Yes, I'm sure they were.

Do we know anything, Susan, about a motive at this point?

ROESGEN: Well, you know, I talked to the lead investigator on the case last night as they were sort of tightening the noose here in the St. Louis area trying to find him. He told me that he didn't want to speculate about any kind of motive, but the detectives did believe that he had a methamphetamine addiction, that he was a known drug addict.

They also said that he bought fresh clothes. He changed out of those bloody clothes and the real reason that they were especially concerned that he was very dangerous, that they wanted to get him right away, was they believe that he had stolen a handgun from that Arkansas couple that he allegedly killed in Festus, Missouri.

COLLINS: Wow.

ROESGEN: So they believe that he had the motivation. It could have been a drug addiction, but right now we haven't heard a plea, he hasn't been in court yet, so we'll wait and see.

COLLINS: Boy. That's devastating. Lots of questions to be answered, too.

All right, Susan Roesgen, sure appreciate it.

HARRIS: You know it looks like a big break for authorities and a frightened motorist in Texas. Some of our affiliates say authorities have caught the person responsible for six random roadway shootings. The latest shooting happened yesterday in Plano, Texas. Other shootings were reported in Garland, Mesquite and Richardson. At least two people were wounded.

For all of the victims it was a frightening ordeal.

(BEGIN VIDEO CLIP)

MIGUEL MIRALRIO, WITNESS (Through translator): A car turned on to Jupiter. He started shooting. I didn't know who he was shooting at. My truck got hit. I was very scared, so is my family. We just dedicate ourselves to work. I don't have any problems with anybody.

(END VIDEO CLIP)

HARRIS: Well, police have not released the name of a suspect arrested last night. Reports say he is 22 years old. He faces charges of aggravated assault, endangering a child and deadly conduct.

We will follow the story and bring you all the developments over the next few hours right here in the NEWSROOM.

COLLINS: The National Guard being mobilized now to help fight fires in California. They are expected to join around 19,000 firefighters some time next week. It is the first time the guard will be used on the ground in more than 30 years.

Air quality, a major problem right now in northern California. You can see just how thick that smoke is. Look at that. People are being told to stay inside as much as possible. And schools in some communities have actually canceled their outdoor activities.

New evacuations have been ordered near Big Sur. That fire has already burned 47,000 acres of forest and several homes.

Unbelievable.

HARRIS: What do you say we get an update on the situation in California?

Rob Marciano, standing by for us in the Severe Weather Center.

Rob, good morning, sir. ROB MARCIANO, CNN METEOROLOGIST: Good morning, Tony. Good morning, Heidi. Of course not having a lot of rain this past spring has caused some of the problems that we're dealing with across parts of California.

The entire state pretty much below average. These are the percentage of what they would normally have for the year ending just a couple of days ago. So generally speaking, Los Angeles, probably the best stop where there's least amount of fires. We get up towards Redding and Sacramento. We're talking about 70, 75 percent of normal. Places like Bakersfield and Riverside have even less than that.

(WEATHER REPORT)

COLLINS: Yes.

HARRIS: We'd love that trend.

MARCIANO: Yes.

COLLINS: Yes.

Thank you, Rob.

HARRIS: Thank you, Rob.

MARCIANO: All right, guys.

HARRIS: President Bush heads to Japan this weekend for his last G8 Summit. Next hour, he is talking about the trip.

CNN's Kathleen Koch from the White House.

Kathleen, good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Tony.

Yes, a senior administration official told me that the president in the Rose Garden at about 10:30 this morning will talk about how he is looking forward to attending this, his final G8 Summit.

He said that the president will talk about accountability and how he plans to push the other leaders of the industrialized countries to really live up to the commitments that they have made at past G8 Summits to the developing world.

Now these commitments, he said, include commitments to provide more food aid, aid to prevent and treat diseases like polio, malaria, HIV and AIDS.

The official says the president will also be outlining some of the more complex issues he hopes to see some progress on at the G8 Summit -- climate change. They'll be talking, of course, about energy security, a very important issue right now, as well as counterterrorism. And besides the president's meetings with the group of leaders when he's at the G8, he will certainly be meeting individually with his host, the Japanese prime minister Fakuda, a difficult issue right now that the U.S. is dealing with them, that Japan is concerned that before the U.S. takes North Korea off its list of countries that are state sponsors of terrorism, that North Korea come clean on its abduction of more than a dozen Japanese in the '70s and '80s.

The president will be -- also be meeting one-on-one with the leader of South Korea. Right now a lot of protests going on in that country as we've seen today over the resumption of beef imports, U.S. beef imports.

So a lot of thorny issues he'll be discussing, though certainly today the president will be putting a positive spin on what he hopes to accomplish there.

HARRIS: OK. Our Kathleen Koch at the White House for us this morning.

Again, that statement from the president, 10:30 a.m. and maybe, maybe, just maybe. the president will take some questions.

COLLINS: Israel calls it terror. A deadly bulldozer attack in Jerusalem. We'll go there live, coming up.

ANNOUNCER: CNN NEWSROOM brought to you by...

(COMMERCIAL BREAK)

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

Looks like a rally but the speaker calling for change is no politician.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They were totally inconsiderate of the cross cultural faux pas that it represented.

(END VIDEO CLIP)

COLLINS: Outrage over an ad that shows a monkey as a candidate.

(COMMERCIAL BREAK)

COLLINS: A horrific scene in the streets of Jerusalem this morning. A bulldozer rams a bus and several vehicles. Three people are now dead, more than 40 others hurt.

CNN's Ben Wedeman is joining us now live in Jerusalem.

Ben, Israeli authorities are calling this a terrorist attack.

BEN WEDEMAN, CNN CORRESPONDENT: Yes, that's right, that's what they're calling it. And what happened was at about 12:00 -- rather 12:00 noon, midday here, this tractor came down this street and starting hitting one car and then buses after another.

According to the police three people dead, that in addition to the driver of this bulldozer who was shot at point-blank range by the Israeli police.

Earlier we spoke with a spokesman for the police, Micky Rosenfeld, who described what happened here this morning.

(BEGIN VIDEO CLIP)

MICKY ROSENFELD, ISRAELI POLICE SPOKESMAN: He made its way down the road crushing everything in sight. The tractor was driven by a terrorist. We can clearly say this is a terrorist incident. Police, special patrol arrived at scene. One of them (INAUDIBLE) by standing close contact with the terrorist, shot and killed him, and at the moment our emergency teams are working at the site in order to deal with the injured.

(END VIDEO CLIP)

WEDEMAN: Now the testimony to the municipal services here, they've managed to clear the roads, the buses and the cars, and now traffic is running again because, of course, this road, Jaffa Road, is very busy. And this is -- was at a very busy time of day.

The entire incident, which took place just below our office which is in this building here, it only lasted a total of about seven minutes. But as I said, in those seven minutes this driver managed to kill three people and wound almost 40 -- Heidi?

COLLINS: Wow. That is a huge distortion. All right. Thanks so much. Ben Wedeman for us live this morning from Jerusalem.

Thank you, Ben.

HARRIS: Progress in securing Iraq? That's how Iraq's foreign minister sees it. He says an agreement outlining a security relationship between the U.S. and Iraq is, quote, "reachable."

The relationship between Iraq and the U.S. has been a critical aspect of discussions between the two nations.

When finalized the agreement will set down rules governing the conduct of U.S. troops in Iraq.

COLLINS: Running out of gas and patience. Iraqis have plenty of oil, but not enough fuel to go around.

CNN's Zain Verjee reports.

(BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT (voice over): Life is a challenge in Baghdad this July. To fill up your tank can take hours. Lines at gas stations stretch and stretch.

This man blames the hot weather and electricity shortages. People are using more fuel to power their home generators.

The Iraqi government says sabotage of a crude oil pipeline interrupted supplies. U.S. officials say the need for more gas comes from the drop in violence.

TOM CASEY, STATE DEPARTMENT SPOKESMAN: As things change and develop but there is increasing demand for gasoline and there is because there is an increasingly active economy and an increasingly normalized or more normalized security situation that's allowing people to use their vehicles more frequently and engage in more normal sorts of activities.

VERJEE: The fuel shortage comes just as the Iraqi government announces the first steps toward modernizing its oil industry. On Monday it's opened the way for international firms to develop its oil and gas fields.

Small comfort here as people are forced to push their cars to the pump on top of some of the richest oil reserves in the world.

(On camera): A gallon of gas costs $1.44 in Iraq. Sometimes it's three times higher than that on the black market. Still, by American standards, it's a steal.

Zain Verjee, CNN at the State Department.

(END VIDEOTAPE)

HARRIS: Well, it is the outrage story of the morning, ignored in the emergency room. A woman struggles for life. Why didn't anyone help?

(COMMERCIAL BREAK)

HARRIS: Left to die. Disturbing video leading to the promise of reforms at a New York psychiatric hospital.

CNN's Mary Snow reports.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice over): Had it not been for a surveillance camera inside the psychiatric emergency room at Brooklyn's King's County Hospital, we may never have known what happened to 49-year-old Edna Green in the moments before she died.

As she struggles on the floor, several people walk by, but no one does anything to help her. And it takes nearly an hour before a medical team arrives to treat her.

The New York Civil Liberties union released this videotape showing Green falling to the floor in the emergency room around 5:30 on the morning of June 19th. About 20 minutes later a security guard comes in to view. BETH HAROULES, NYCLU STAFF ATTORNEY: He walks in, he stands there. We actually think there's a television up in the top. We think he is looking at the TV. But he's clearly got the patient in view and he walks away.

SNOW: Green was in the E.R. waiting for a bed to become available. At one point the woman can be seen struggling to free herself from the chairs. And at another point she appears to make an effort to get up.

A copy of her medical records contradicts the tape, listing her at the same time as being awake, up and about, even going to the bathroom.

At about 6:10 a.m., lawyers say a second security guard enters the room.

HAROULES: Here he comes into the room, checks her out. He can't even get himself off his chair. He sits there. And then you'll see him wheel himself away.

SNOW: Finally around 6:30 a.m. medical personnel arrive. Green is later pronounced dead.

The New York City Health and Hospitals Corporation released a statement, saying, "We are shocked and distressed by the situation," adding that after it learned of the incident the agency's president directed the suspension and termination of those involved.

The city's mayor says the city will do everything it can to cooperate with the investigation.

MAYOR MICHAEL BLOOMBERG (I), NEW YORK: I was horrified, is much too nice a word. Disgusted, I think, is a better word.

SNOW (on camera): This is not the first time the psychiatric unit at King's County Hospital has been targeted. Advocates for the mentally ill filed a lawsuit in federal court in 2007 calling this a, quote, "shameful place" with horrendous conditions. That suit is still active.

The city's Health and Hospitals Corporation says it has put in place a number of reforms and continues to do so, including checking on patients in the psychiatric unit every 15 minutes.

Mary Snow, CNN, Brooklyn.

(END VIDEOTAPE)

COLLINS: A federal lawsuit over a new gun law in Georgia. At issue -- does the law allow visitors to carry firearms at Atlanta's airport?

City officials declared the airport gun-free when the law took effect yesterday.

(BEGIN VIDEO CLIP)

MAYOR SHIRLEY, FRANKLIN, ATLANTA: We are under the opinion, which has been stated, that state law protects this location because it is a public gathering.

JOHN MONROE, ATTORNEY FOR GUN RIGHTS BACKERS: I don't think that's her interpretation. I think that's her wish list for what she'd like the law to be. That's not what the law is.

(END VIDEO CLIP)

COLLINS: Atlanta officials say anyone carrying a gun at the airport could be arrested and charged with a misdemeanor.

Georgia's new gun law took effect yesterday. It allows gun owners with concealed weapons permits to carry firearms in several places. Those include restaurants that serve alcohol and also into public parks, on public transit.

HARRIS: A volatile market. We are live at the opening bell with Susan Lisovicz.

And $4 latte or $4 gas? Trouble brewing at Starbucks. Big changes coming. The tight economy hits the coffee pot in the NEWSROOM.

(COMMERCIAL BREAK)

ANNOUNCER: The "Opening Bell" brought to you by...

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

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

HARRIS: And I'm Tony Harris. Welcome back to the CNN NEWSROOM.

You know it was a wild ride. Maybe that's an understatement on Wall Street yesterday with trading guided largely by auto sales.

Susan Lisovicz, time to bring her in this morning at the New York Stock Exchange with details and a look at what we can expect today as we get closer to the opening bell.

Susan, you know, it was one of those days when we knew the day would be guided principally by auto sales numbers for June. And it was one of those stories where we expected the news to be bad, it was, but it wasn't as bad, at least in one respect, as we thought and that ended up being good news.

SUSAN LISOVICZ CNN CORRESPONDENT: Yes.

HARRIS: Yes.

LISOVICZ: I mean that's the kind of environment in which we live, Tony. And you know, silly me, because this is a holiday-shortened week. I felt a lot of people were taking off and that it would be fairly quiet.

I was wrong.

We had a wild ride yesterday. Ford's dismal sales sent the Dow down more than 100 points when its news came out. But GM turned things around with better-than-expected numbers.

Now remember, this is a loss...

HARRIS: Right.

LISOVICZ: A loss of 18 percent in its sale, but that's good compared to the 25 percent decline that was expected.

All in all, Tony, the major indices ended modestly higher. And remember, the Dow dropped like 100 points at the open.

HARRIS: That's right.

LISOVICZ: We're watching GM shares again downgraded by Merrill Lynch and are down 4 percent in the pre-market. Still hovering near a 50- year low. And of course, another thing we're watching, oil, which hit a record yesterday, a record close, just under $141 a barrel.

It's little changed right now but, about an hour from now we get the weekly inventory report. And we are expecting another drop in crude and gas supplies. And you know what that does to oil prices.

HARRIS: That's right. That's right.

LISOVICZ: Today we have more signs, Tony, of a slowing economy. Starbucks is closing 600 stores over next year for about 7 percent of its work staff.

Ali will along just in a couple of minutes and he'll talk more about that and what it means and how it's representative of the economy.

Block buster is withdrawing $1 billion bid for Circuit City due to the slowing economy. And in about 30 minutes...

HARRIS: Yes.

LISOVICZ: ... factory orders due out expecting to show orders slowed in May and, well, you know, shrinking demand leading to an inventory glut. That could lead to more job cuts.

HARRIS: Right.

LISOVICZ: And of course, then we get tomorrow's jobs report which is a major report of the week. Remember, employers have cut jobs every single month this year.

HARRIS: Got to tell you, Susan. The Starbucks story -- and you're right, we're going to talk to Ali about it in just a couple of minutes. But that really feels like something to watch here, because that is -- that company has really been a juggernaut just building stores everywhere, it seems. Two and three within blocks of one another.

And maybe that's part of the issue here, as I hear the bells go off behind you, that a lot of buildup and now there's a bit of cannibalization going on. LISOVICZ: That's right. I mean and more importantly, it shows what $4 gallon gas...

HARRIS: Yes, I think you're right.

LISOVICZ: ... does to consumer spending.

HARRIS: Yes.

LISOVICZ: You're not going to buy maybe the $4 latte every single day. And so, we've seen lots of examples of that. And, you know, real sea changes in consumer spending.

Like just with autos, for instance. You know, Toyota sales were down yesterday at 21 percent. Toyota makes the Prius. It makes the Yaris. Both really small cars, great fuel efficiency. The Prius, of course, is a hybrid. But they can't make them fast enough.

HARRIS: It can't make (INAUDIBLE) fast enough.

LISOVICZ: That's right. In the meantime, you know, in the first 30 seconds of trading we are seeing modest gains, but don't believe it, Tony! We have hours to go. And, you know, things have been turning around quite rapidly.

HARRIS: Yes, absolutely. Dramatic highs and lows. Happy you're with us.

LISOVICZ: Likewise, Tony.

HARRIS: Susan Lisovicz at the New York Stock Exchange. Good to see you, Susan. Thanks.

LISOVICZ: Likewise.

HEIDI COLLINS, CNN ANCHOR: So 600 stores closing their doors. That's the latest news coming out of Starbucks. You know, the coffee company. Senior business correspond Ali Velshi actually talked about it a little bit earlier this morning.

(BEGIN VIDEO CLIP)

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: They're talking about 600 stores now with an average of about 20 people working at each one of those stores. So we are looking at over 10,000 people who are being put out of their jobs as a result of this. Starbucks was such a massive growth story for so long, that this has something to do with the economy. And people sort of pulling back from buying expensive coffees.

Also, got something to do with the fact that that run of growth at some point comes to an end. We've been sort of talking about this about a year.

KIRAN CHETRY, CNN ANCHOR: The over saturation. VELSHI: Right. You know, that they are there. It is not the same experience it used to be. They're trying to get back into what it was. So I think -- again, it is like the auto companies. Is it fuel costs? No, because the auto companies have been sort of petering out over the years. Starbucks is just not in the growth phase that it was, you know, a few years back.

(END VIDEO CLIP)

HARRIS: We've got another "ISSUE #1" story for you. High gas prices blamed for a big drop in auto sales. American automakers not the only ones having a bumpy ride. CNN's Bill Tucker has the numbers.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Sales of new cars and trucks are being crushed. Chrysler saw its sales collapse in June, down 36 percent. The company which relies on nearly three-quarters of its sales from trucks, minivans and SUVs had already announced it is shutting down its minivan plant in St. Louis cutting back on the shifts at the Belvedere, Illinois plant.

Chrysler sales are down 22 percent so far this year. Chrysler reported the worst looking numbers but it had plenty of company in its misery, as high gas prices and a weakening economy exposed Detroit's vulnerability.

PROF. PETER MORICI, UNIVERSITY OF MARYLAND: Generally recession is exposed weak management. When times are good, mistakes are papered over by the rising tide. But when the economy turns south, the people with weak business models are really exposed.

TUCKER: Ford sales tumbled 28 percent in June, down 14 percent in the first half. GM's fell 18 percent and 16 percent in the first six months. Compounding the problems for domestic producers, they were already hurting.

REBECCA LINDLAND, GLOBAL INSIGHT: These companies were weak coming into 2008. And so they have already cut costs to the bone. They have already had, you know, tens of thousands of layoffs, both from a union and non-union standpoint.

TUCKER: That gives the advantage to foreign automakers who are in a stronger financial condition, making them better able to weather the bad news, but even Toyota saw its sales fall.

DAVID ZOIA, WARD'S AUTOMOTIVE: This is a trend that has really affected everyone, you know, some more than others.

TUCKER: Like Honda, for example, its sales rose modestly last month.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

COLLINS: Quickly we want to show you some more pictures, brand-new pictures, actually, live pictures, coming in from our affiliate KCAL. This is Goleta, California. What you're looking at -- hopefully, we'll get that signal back. It's sketchy because of all of these fires out here that we've been talking about for days now. 1,000 different fires.

This again known as the Goleta fire. The nickname -- the gap fire. There are actually evacuation orders that are in place now. That happened, I believe, last night. Residents, if you know the area for Glen Annie and Lapidary (ph) Canyon. They are expecting that more evacuations could come. Really, really fighting this thing hard.

Again, it is just one of many, many fires that are burning in central and northern California. We've been watching it for days and continue because air quality is certainly now an issue. Look at how thick that smoke is.

HARRIS: And Rob mentioned just moments ago that rain has been in a serious deficit. And Northern California -- throughout California and -- I guess the other thing we are curious about are wind speeds and wind conditions out there, because we know that that is an important factor for the firefighters trying to battle those flames.

ROB MARCIANO, CNN METEOROLOGIST: Yes. Winds are pretty light along the immediate coastline. They're still on shore. But we don't have any Santa Anas or anything like that blowing.

HARRIS: Marine layer -- marine layer would be nice.

MARCIANO: Would be nice, but, you know, the topography here. I mean, you got those coastal mountains and they pretty much put the kibosh on the marine layer getting into the inland valleys, which is where some of that action is taking place.

(WEATHER REPORT)

COLLINS: Yes. Hey, I'm headed there next week. What do you think? It will be about 120 by the time I get there?

HARRIS: That means you'll be miserable. You don't like the heat.

COLLINS: I don't.

HARRIS: Certainly.

COLLINS: But, see, there's this casino where you just kind of stay inside. They do have air conditioning. Yes. All right, Rob.

MARCIANO: I don't have my earpiece in. I can't hear a thing.

(CROSSTALK)

COLLINS: Because you're just over there.

HARRIS: There you go.

COLLINS: He shouldn't take that out. HARRIS: No. What is he thinking? All right.

COLLINS: We'll get back to more weather a little bit later on.

John McCain wraps up his stop in Colombia today before heading to Mexico. McCain met with Colombia's president discussing illegal drugs, improving relations and free trade.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: Free trade is an important issue, not only for Colombia, but I believe for the economy of the world, and, as you know, for the United States economy. And, as you know, I have strongly supported education and retraining programs for our displaced workers who have faced the challenges that America's economy is undergoing as we speak.

(END VIDEO CLIP)

COLLINS: McCain and President Bush both support a new trade agreement with Colombia. Barack Obama sides with Congressional Democrats who have blocked the deal over concerns about violence against labor leaders.

Obama was in Ohio calling on faith-based groups to step up. He praised earlier initiatives put forth by President Clinton and President Bush.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESUMPTIVE PRESIDENTIAL NOMINEE: I know there are some who bristle at the notion that faith has a place in the public square. But the fact is leaders in both parties have recognized the value of a partnership between the White House and faith-based groups.

(END VIDEO CLIP)

And Barack Obama is in Colorado Springs, Colorado today. He'll unveil his national service agenda. Obama's campaign says the plan gives Americans a chance to help address some of the country's most pressing challenges. You can see the senator's speech live here on CNN, 11:00 a.m. Eastern in the NEWSROOM.

HARRIS: Well, a Japanese cell phone ad is sending shock waves around the world. Wait until you see this.

CNN's Kyung Lah reports on monkey business that many call outrageous.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT (voice-over): The mobile phone commercial begins with the crowd rallying behind an inspirational speaker. Supporters hold signs that read "Change." The company eMobile says it is a nod at the worldwide popularity of U.S. presidential candidate Barack Obama. But here is the problem. The speaker at the podium is a monkey.

KELEB JAMES, RESIDENT OF JAPAN: It just made me go -- oh, come on, guys, come on.

UNIDENTIFIED MALE: And that has it.

LAH: This group of mostly African-Americans who live in Japan could not believe what they were seeing on Japanese TV.

JAMES: I don't think that anybody who deals on a world level doesn't understand the correlation between monkeys and black men. How they've been used historically as a symbol to dehumanize, as we are sub-human people.

MAL ADAMS, RESIDENTS OF JAPAN: They were totally inconsiderate of the cross-cultural faux pas that it represented.

PHILIP WOO, JAPANESE RESIDENT: People's minds should be more open as world citizens.

LAH: The ad has outraged this group and people in cyberspace, charges of racist Japan dehumanizing a U.S. presidential hopeful.

ADAMS: Are you trying to tell me that nobody between its inception and the result said -- whoa, whoa, whoa, hey, guys!

ERIC GAN, EMOBILE LTD. PRESIDENT & CEO: Not really, to be honest, at that time. But now, of course, we know.

LAH: The president of eMobile insists the firm simply had no idea. He points out the company's mascot is a monkey, an animal revered in Japan and used in previous eMobile ads.

GAN: When they sold the idea the first time, they said -- hey, this is actually -- you're copying this idea from the presidential election in the U.S. and they said, yes. But you know what, that that's how you make a presentation. How you make, you know, an impact. So which is -- we thought it was quite interesting.

LAH: We wondered if Tokyo commuters would find it interesting. Some thought it was cute, but none made a connection to the U.S. presidential candidate.

Obama-san?

UNIDENTIFIED MALE: Obama-san.

LAH: But they should get it says Temple University's Director of Asian Studies.

JEFFREY KINGSTON, TEMPLE UNIVERSITY, DIRECTOR OF ASIAN STUDIES: Cluelessness really isn't an excuse. Really Japan has to understand that public discourse here is not just a domestic discourse, it's international discourse.

LAH (on camera): There's not a lot of diversity here in Japan. 98.6 percent of the people who live here are ethnically Japanese. The cell phone company says it's received no complaints from Japanese customers, but has still pulled the ad after a complaint from the group in our story and a call from CNN.

(voice-over): For one Japanese company, a crash course in cultural sensitivity as a possible world leader breaks barriers on a national and global scale.

Kyung Lah, CNN, Tokyo.

(END VIDEOTAPE)

COLLINS: Quickly, we want to get back to the story that we had been following this morning, about this shooting that took place in Texas. Garland, Texas, to be specific.

We have on the line with us right now, Joe Harn, with the Garland Police Department trying to get the very latest information.

If you could tell us, sir -- if you have an arrest, we are hearing words that it is possible you have a suspect in custody.

VOICE OF JOE HARN, GARLAND, TEXAS POLICE: Yes. We took 22-year-old male in custody last night about an hour and a half after his last shooting which was at a restaurant where he drove up into the parking lot, got out, walked up towards the restaurant and fired into the wall just below the glass where the restaurant was fairly well occupied. Very close to where he had just done a shooting two days ago on the one of the first shootings that he had done.

COLLINS: So we have six shootings in all. Is that correct?

HARN: Yes. Six shootings, four different towns that butt up to each other. Garland was first, Mesquite to the south next, then Richardson, just to our north, and Plano just to our north.

COLLINS: What do you know about the injuries of people? We're being told there are three injuries. Two people were shot. One of them, actually, still in the hospital. Do you have any updates on their conditions?

HARN: Yes. You're correct. The very first two shootings happened on Sunday. One of the men was shot in the hand. He's been released from the hospital. The second shooting, about -- after 9:00 that night on Sunday night was shot in the stomach. He's still in the hospital, in a Dallas hospital, but expected to recover.

COLLINS: Anything you can tell us about this suspect? I understand he's a pretty young guy.

HARN: 22 years old. Right now, we're not releasing his name or photo because we're still showing a photo lineups of him to both witnesses and victims.

COLLINS: So that doesn't mean you are possibly looking for accomplices, does it? HARN: No. We think that he's going to be the lone shooter. There was one of the shootings yesterday that there was question whether he was by himself. But we, after arresting him, think he was by himself. We think we've got the lone shooter.

COLLINS: All right. Well, we will stay on top of this story. Sure do appreciate your information. I know how busy you guys must be at this point. Joe Harn for the Garland Police Department in Texas. Thank you.

HARRIS: A food detective following the tomato trail but the search for a Salmonella link may lead them down another garden path.

(COMMERCIAL BREAK)

COLLINS: Food safety experts now expanding their search for a Salmonella link. But the tomatoes might be able to help a little bit.

CNN medical correspondent Elizabeth Cohen is here.

So what's the deal? I mean, we keep talking about these tomatoes. Some of them are still on the shelves or are we still looking for the same culprits? We don't know where it is coming from?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: They are not exactly sure where it is coming from. In the meantime, 870 people have gotten sick.

COLLINS: Now, 870.

COHEN: 870. And the FDA says this is not the end. They expect more people to get sick. And here's the latest twist. A state official tells CNN maybe it is not tomatoes. Maybe it's lettuce, or jalapeno peppers, or cilantro.

The reason they named those three foods is that some of the people -- many of the people who got sick were also eating those foods. Now, tomatoes are still the lead culprit, but they are beginning to branch out a little bit in looking for what might have happened here.

COLLINS: So I'm wondering, you know, they started investigating the tomatoes, and then they started to see these other links because like you said, you don't usually have tomatoes alone.

COHEN: By themselves. Right. Right.

COLLINS: So why is it so hard for the FDA to figure it all out?

COHEN: It is hard to figure out the source of a food-borne illness, epidemic such as this. And here's the reason why. Tomatoes are very busy. Tomatoes don't go straight from the farm to your plate. They go all sorts of places. Lots of different people touch them.

They go to production houses and they go to places where they are clean. Some tomatoes start out in the U.S., go to Mexico, and then go back to the U.S. So it is really hard to pinpoint exactly where the contamination might have happened.

COLLINS: Yes. Well, I bet. And possibly, we have the 4th of July coming up this weekend, obviously. It's going to be a lot of barbecuing going on.

COHEN: A lot of tomatoing -- yes.

COLLINS: A lot, probably or maybe not. I don't know. Maybe people are avoiding them now. Remind us, which ones are safe, which ones aren't?

COHEN: Yes. The FDA says that some tomatoes are OK to eat and some tomatoes are not. So let's take a look at the list, plus some handy dandy pictures so that you know the good from the bad.

Cherry tomatoes, grape tomatoes, tomatoes where the vine is still attached that you find in grocery stores and home-grown tomatoes are all OK, according to FDA. The ones that are not OK are Roma or red plum. They go by two names and they look like the picture there, and red round tomatoes.

COLLINS: Just the regular red, round.

COHEN: Red, round. Yes. That's just what they are called and that's what they look like.

COLLINS: OK. All right. Well, we'll be watching for those everywhere we go. Thank you.

COHEN: OK. That's right.

COLLINS: CNN medical correspondent Elizabeth Cohen.

HARRIS: You know, we expect an update this morning from Angelina Jolie's doctor about the pregnant actress' condition. Jolie is expecting twins and has checked into a hospital on the French Riviera. And the hospital says there is no emergency. She'll be kept under doctor supervision and get some rest while she waits to give birth.

Jolie has said the babies are due in August, but twins, I'm told, often come early. She and actor, Brad Pitt, have four other children.

COLLINS: Sex up the summer grind. The secret is in the rind.

HARRIS: What are you talking about?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Watermelons has some of the same effects as Viagra.

UNIDENTIFIED MALE: Really?

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED MALE: Really? Well, give me another one. UNIDENTIFIED MALE: I'll give you some more.

(END VIDEO CLIP)

COLLINS: There's only so much I can say. But I won't. Juicy fruit in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Getting Randy from rind. A new study suggests watermelon gives you a real boost. Reporter Debra Nap from affiliate KENS has the story.

Hey, now.

(BEGIN VIDEOTAPE)

DEBRA NAP, KENS CORRESPONDENT (voice-over): The chemicals that are in the watermelon rind work much like Viagra.

UNIDENTIFIED FEMALE: Oh, really?

UNIDENTIFIED MALE: Give me a few more.

NAPS: Just a week after the annual watermelon thump celebration in Lulling, there's something new that watermelon growers can hang their hat on.

The rind on watermelons has some of the same effect as Viagra.

UNIDENTIFIED MALE: Really?

NAPS: Yes.

UNIDENTIFIED MALE: Really? Well, give me another one.

UNIDENTIFIED MALE: I'll give you some more.

NAPS: The director of Texas A&M's Fruit and Vegetable Improvement Center has discovered that watermelons have an ingredient that delivers Viagra like effects and may even increase libido.

UNIDENTIFIED MALE: (INAUDIBLE) surprise.

NAPS: There is a catch. The vital nutrient called citrulline that relaxes the blood vessels is found in the highest concentration in the part you generally don't eat -- the watermelon rind.

UNIDENTIFIED MALE: Would it take, like, a whole watermelon rind to eat to do any good? I mean, you might get yourself sick before you get yourself any help.

NAPS: Have you ever eaten the rind?

UNIDENTIFIED MALE: No. But I will start it now.

NAPS: Rinds are used in watermelon pickles and they're Kelly Allen's specialty.

UNIDENTIFIED FEMALE: My husband loves these. I don't know if it's because he eats these or not but he didn't have a problem.

NAPS: Neither does Hoit Alfred (ph), according to his girlfriend, Louis.

UNIDENTIFIED FEMALE: I don't know that you need them.

UNIDENTIFIED MALE: Well, thank you. That's a compliment.

NAPS: Scientists are working to breed watermelons with higher concentrations of citrulline in the flesh which may change Luling's image from being known for watermelons to something else.

That might be a new aspect to our watermelon growing. I can tell you that. No pun intended, but, you know.

(END VIDEOTAPE)

HARRIS: OK. So the scientist who did the study says the watermelon rind also has benefits for your heart. Now, of course, people aren't talking about that part of the story.

COLLINS: No, no. They don't care about that.

HARRIS: They don't care about that.

COLLINS: All right. So, how healthy are you? Well, if you eat watermelon rind you're good to go. New results from a study. 26 years in the making. Check the map for the happiest country in the world.

(COMMERCIAL BREAK)

COLLINS: Not just a golf tournament. This week's stop on the PGA tour offering a little more for military families. That story, coming up.

HARRIS: Happy in Denmark. The Danes topping an international survey, people in 97 nations asked if they are happy and satisfied with their lives. After Denmark, researchers found the most happiness in Puerto Rico. You can understand. Colombia. Iceland? The U.S. ranked 16th.

At the bottom of the list -- Ukraine, Belarus, Moldova, Armenia and Zimbabwe. Four of those are former Soviet Republics. The University of Michigan study was conducted over 26 years from 1981 to 2007.

COLLINS: I know a Dane. He's a happy guy.

HARRIS: He's a pretty happy guy?

COLLINS: (INAUDIBLE).

HARRIS: Can we get him on a beeper line?

COLLINS: He's on the line now.

HARRIS: There you go.

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

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

A murder suspect heading to court this morning. Police say he's behind a killing spree that took eight lives.

President Bush stepping into the Rose Garden this hour with a preview of his final G8 Summit. Live coverage ahead.

Starbucks shutting hundreds of stores. The sour economy taking a little whip off the frappucino, today, Wednesday, July 2nd. You're in the CNN NEWSROOM.

COLLINS: We are just about 30 minutes away now from President Bush's live remarks. Previewing his trip to Japan and the G8 Summit. His last, in fact. We're going to check in with our Kathleen Koch at the White House, coming up in just a moment.

HARRIS: A two state killing spree. Eight people beaten to death. This morning, a suspect is due in court.