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Nicholas Sheley Caught, Due in Court Later Today; Wildfires Continue in Northern California; President Bush Talks About His Trip to Japan for G8 Summit

Aired July 02, 2008 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: In fact, we're going to check in with our Kathleen Koch at the White House coming up in just a moment.
TONY HARRIS, CNN ANCHOR: A two-state killing spree. Eight people beaten to death. This morning a suspect is due in court.

Let's get to Susan Roesgen. She is in Granite City, Illinois. That's where the suspect was arrested after an intense man hunt. Susan, good morning to you. How did police eventually track him down?

SUSAN ROESGEN, CNN CORRESPONDENT: Well, you know, Tony, they had Nicholas Sheley's picture up everywhere. I saw his picture in a convenience store last night. I saw his picture tacked up to an AutoZone. He, they had his -- detectives had his pictures up everywhere in Illinois and in Missouri.

And they sort of tracked the progress of the murders that they believe Sheley committed. They started in Sterling, Illinois. And then the next murder was in Galesburg. And then four people killed in Rock Falls, Illinois. And then two people murdered in Festus, Missouri, just a couple of days ago, Tony.

And then the detectives tell me that they believe that he was on foot. They believe that Nicholas Sheley stole a pickup truck from his Galesburg victim. And they found that pickup truck in the St. Louis area. So they believe last night that he was somewhere here in the St. Louis area and it was here in Granite City, this small town just outside of St. Louis that he was picked up outside of a bar smoking a cigarette just as casual as you can be, Tony. But he is now in the jail behind me on a $10 million bond.

HARRIS: So, Susan, what are police saying, if anything, about a motive?

ROESGEN: Well, you know, we haven't heard any kind of speculation yet. We have seen a press release from the St. Louis Police Department saying that he is a known meth addict, a drug addict. The detectives also say that he called his wife during the last week, Tony, that Nicholas Sheley called his wife and told her, in their words, he had more killings to do.

The wife told the detectives that her husband was, in her words, a nice guy, except when he has been drinking or doing drugs. Now, again, that's just the talk among the detectives of what they've been able to tell us. I do know, Tony, that Nicholas Sheley is the only inmate right now in the jail behind me.

I spoke to the lieutenant just a couple of minutes ago and he told me this is a small town of about 35,000. Very little violent crime here. And maybe a murder once a year.

So, they've got this most wanted man, this most wanted suspect, in the jail behind me. He's the only one in there. And in fact, no one is quite sure yet how they're going to handle his first court appearance where he'll be asked to make a plea. He may, actually, in fact, stay in the jail right here. The local judge in the small town may do a video conference. No one's really quite sure how to handle this yet because he was captured in this town, but this town isn't used to this kind of attention and big city type killing.

HARRIS: OK. And I know you're following it for us. And just drop us a note when you get a little more clarification, guidance on the process today. Susan Roesgen for us. Susan, good to see you. Thank you.

COLLINS: Texas authorities think they've caught the person responsible for six random roadway shootings. We just talked a moment ago with the police spokesman in Garland, Texas, who confirmed the arrest.

(BEGIN VIDEO CLIP)

VOICE OF JOE HARN, GARLAND, TEXAS POLICE: Yes. We took a 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 one of the first shootings that he had done.

(END VIDEO CLIP)

COLLINS: One of the latest shootings 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 MIRARIO, 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 was my family. We just dedicate ourselves to work. I don't have any problems with anybody.

(END VIDEO CLIP)

COLLINS: The suspect faces charges of aggravated assault, endangering a child and deadly conduct.

HARRIS: The National Guard being mobilized to help fight fires in California. They're expected to join around 19,000 firefighters sometime next week. It is the first time the Guard will be used on the ground in more than 30 years. Air quality really a major problem here right now in northern California. You can see just how thick the smoke is.

People are being told to stay inside as much as possible. And schools in some communities have canceled all of their out door activities. New evacuations have been ordered near Big Sur. That fire has burned 47,000 acres of forest and several homes. Beautiful country.

COLLINS: Yes, looking really awful right now, though. Our Rob Marciano standing by to talk a little more about this and the weather for the rest of the country. Every time I see the shots of the smoke and people standing in the middle of it, you just got to wonder how on earth they're able to breathe.

ROB MARCIANO, AMS METEOROLOGIST: Some of that smoke getting through California and over into Nevada, Las Vegas reporting some smoke this morning. They expect to see more smoke throughout the day today. And you're right about that. Beautiful country, that Big Sur area is just breathtaking.

All right. Here's what's going on out west. Heat again. Not much in the way of dry lightning expected today. But the damage already done. Not only the dry lightning that we've seen in the past couple weeks that have sparked these fires, but also the dry weather we saw this spring.

A pretty good wet winter, but then the faucet turned off come March and April. These are the numbers for the past year. 72 percent of normal in Redding, 75 percent of normal in Sacramento. A little bit better in Los Angeles. But Riverside and Bakersfield, they seem in some cases, less than half the rainfall. Radarscope today showing not much so we don't expect to get any help from mother nature in the rainfall department.

A matter of fact, the heat building across the southwest. Heat watch in Vegas. Excessive heat warning, Phoenix, west I-10 through Humo (ph) and to the deserts of southern California. So take it easy out there and try to stay inside if you can. Thunderstorms developing today from Green Bay south, eventually dropping into Chicago.

We got a live picture for you. Temperatures there will get up into the 80s. Looking a little bit steamy there. There's the Miracle Mile. All right. Looking good. Look out for thunderstorms that could become rough and tumble, starting around the lunch hour and then moving through the afternoon.

Kansas City, you've been seeing some action mostly north of Kansas City. And here's where we expect most of the juice to fire later on today. Along this very slow moving front that could produce large hail, maybe some damaging winds along with isolated tornadoes. As far as the high temperatures for today, check them out.

There you go. Nice and slow. Kind of easing you into summer. 97 in Dallas, 91 degrees in Kansas City. It will be 86 in New York. You guys want a sneak peek at -- well there's our little could be tropical depression. Not too worried about it right now. A little sneak peek at fourth of July, guys because you can never get enough of these fire works this time of year.

Right, we throw them on the graphics. A little bit of a blocking effect could lead to some showers and storms. Kind of peek-a-boo clear skies and maybe some slash and dash thunderstorms over the weekend. At least beginning on Friday from this area, from Cincinnati maybe east along I-95 in Sioux Falls.

That's the latest from here. And of course, we'll be reusing these for the next couple days. Going to get our money's worth.

COLLINS: Yes. Absolutely.

MARCIANO: Maybe break out the American flag as well.

HARRIS: There you go.

COLLINS: Does it wave like that?

MARCIANO: When the wind's blowing.

COLLINS: That's high-tech. All right.

MARCIANO: Don't make me break dance.

COLLINS: Great. Thank you, Rob.

MARCIANO: You got it.

HARRIS: Hey, I want to get a bit of an update on the situation in northern California, the wildfires that we've been covering for days now. Daniel Berlant is with California Fire. He is on the line with us. Daniel, thanks for your time this morning.

VOICE OF DANIEL BERLANT, CAL. FIRE: You're welcome.

HARRIS: If you would, how would you describe the progress being made in containing the wildfire in Goleta. Let's start there in the Los Padres National Forest.

BERLANT: You know, that fire just broke out yesterday evening. Really fanned by a strong wind late at night. A typical weather pattern that we kind of start to see later in the year, much like the Santa Ana winds that occur in southern California. That started the wildfires last year back in October. But this morning, crews, we got a lot of crews in there making good progress.

HARRIS: You know, we just reported a few moments ago that the National Guard will actually be on the ground starting next week for the first time in, I guess, more than 30 years. Is it just a matter of getting more manpower on the ground in these hot spots and where these fires are burning, or is the National guard bringing you some additional capabilities?

BERLANT: You know Cal Fire does work closely with the California National Guard for their aerial resources, their helicopters, aircraft, that kind of stuff. But this is going to be one of the first times in a long time that we've used actual ground forces on the ground. Over the next week or so we're going to be training them as firefighters so that we can then put them on the line, help put out any hot spots while our crews then would be relieved to be able to go towards the active flames.

HARRIS: OK. And that begins next week. And boy, how much training is necessary? How long before you think that the National Guard, that personnel will actually be ready to help in the fire fighting effort?

BERLANT: You know, obviously we're not going to put anybody on the line without the proper safety training.

HARRIS: Sure, sure.

BERLANT: They're going to be actually going to areas that are -- are called a cold line. They're going to be putting the hot spots out, making sure that we have every single ember, every single little smoldering, you know, completely out. They won't really be in direct contact with large flames. That's going to be left to our trained professionals. But they will go through some intense safety training over the next week.

HARRIS: Daniel Berlant is with California Fire. Again, if we just spoke for a moment on the Goleta fire, 40 plus homes evacuated, 200 other structures are threatened by that fire. We'll keep an eye on the situation. Daniel, appreciate it. Thanks for your time.

BERLANT: You're welcome.

COLLINS: President Bush talks about his trip to the G8 summit in Japan, minutes ahead. Meanwhile, CNN's Kathleen Koch is at the White House for us this morning.

So what is the president expected to focus on, Kathleen, when he talks in the Rose Garden later?

KATHLEEN KOCH, CNN CORRESPONDENT: Well, Heidi, White House Press Secretary Dana Perino said the president is basically going to look ahead to what he really hopes to accomplish with the other leaders at the G8 summit in Japan, the three-day summit. She said the president is going to talk about the progress he wants to make on complex issues, including energy, security, climate change, very important issue, too much of the rest of the world, trade, also counter terrorism.

Perino disputed the contention that the President may not be able to accomplish as much because he has barely six months left in office. She said indeed she thinks that many of the other world leaders are more highly motivated than ever to work with the President to really accomplish what they've started, what they've been working on over the last seven plus years. We're told the President will talk about accountability along those lines. And he'll talk about really how he wants to try to hold the rest of the industrialized -- these other leaders to account, to come through on these promises that they've made to the developing world, to struggling countries. Talk about coming through with food aid that has been promised. Also aid to treat and prevent diseases like polio, malaria, HIV and AIDS. So, those are some of the things he's going to be touching on. And we're told that there's a 50/50 chance he'll take questions out there in the Rose Garden.

COLLINS: Huh, interesting. I guess everyone is probably wondering whether or not they'll be talking about high fuel costs.

KOCH: I think that's a pretty safe bet. That's certainly something that in a briefing by major administration officials yesterday on the summit they did say they thought that would come up. But when they were asked, what can these leaders really do about it, they had very little to say.

They said, you know, they'll certainly talk about what happened at the Saudi Arabian conference just last month when it promised to begin pumping more oil. But there is no direct answer to that question. Probably, and perhaps that's a tacit admission. There's very little they can do directly.

COLLINS: Yes. Some of the other countries might actually say, what, it's only 4 bucks a gallon there in the United States?

KOCH: They're paying much higher prices than we are and have been for a long time.

COLLINS: Yes. They certainly are. All right. CNN's Kathleen Koch outside the White House this morning. We're going to bring the President up a little bit later on for live coverage of his remarks on the G8, coming your way 10:30 Eastern, 7:30 Pacific.

KATE BOLDUAN, CNN CORRESPONDENT: I'm Kate Bolduan just outside the nation's capital. Golf and the military. A strange combination? I'll tell you why it's a perfect fit heading into the fourth of July holiday, coming up in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: Paying tribute. The PGA Tour hits the Washington area this week for a tournament usually hosted by Tiger Woods. But this year there are some other VIPs in attendance.

CNN's Kate Bolduan is in Bethesda, Maryland, this morning. Good morning to you, Kate.

BOLDUAN: Good morning.

Well, as you can see it's a beautiful day here just outside the nation's capital. Pros and amateurs warming up behind us here as the AT&T National is about to get under way. But as one special girl tells us, this event this weekend, today it is so much more than just a golf tournament. (BEGIN VIDEOTAPE)

BOLDUAN (voice-over): This isn't just any summer golf practice. For 13-year-old Maggie Rollins --

MAGGIE ROLLINS, CEREMONIAL VIP: That was horrible.

BOLDUAN: She's been warming up for a much bigger swing. The ceremonial first tee shot kicking off the annual AT&T National Golf Tournament hosted by none other than Tiger Woods.

ROLLINS: Probably 10 percent nervous, 90 percent excited.

BOLDUAN: The tournament hosts more than 100 of golf's finest. But more importantly it's a special fourth of July tribute to military families across the country. Maggie's father is recovering after being wounded by a roadside bomb in Iraq.

ROLLINS: Very frightening. Scary. A lot. You don't know where he's at all the time. So you can't really call him up.

ALLISON BARBER, ASST. DEFENSE SECRETARY: It's just one more way that shows that the American people are looking for ways to kind of put their arms around our military members and their families and say, don't worry, you're serving our country and you're going to serve you.

BOLDUAN: 30,000 free tickets to the tournament are being handed out to military families. The high profile opening tee shot is labeled the shot hit around the world. Because the golf balls were played by service members in Iraq and other military locations overseas. What's the connection between golf and the military? The tournament's host, Tiger Woods. His father served two tours in Vietnam.

TIGER WOODS, GOLFER: We need to say thank you somehow. And this is a small way of doing that.

BOLDUAN: Maggie knows it's all to honor people like her dad. But for her the tournament's more about fun.

ROLLINS: Because I love the whole game of golf. And I'm ready to show my dad that I can play.

(END VIDEOTAPE)

BOLDUAN: Now, top prize, the winner here after the tournament will take home just over $1 million. But throughout the tournament this weekend through the fourth of July, the focus, especially for people like Maggie Rollins sits squarely on celebrating the fourth of July weekend and of course, honoring the men and women who serve our country, Heidi.

COLLINS: Well, I just love it. You know some of the best courses that I've ever played are actually on military bases in this country. So, what a great tournament. Thanks so much, Kate Bolduan, for bringing it to us. HARRIS: A new airline restriction has got you a little worried about your carry on bag. Have we got a demonstration for you.

(COMMERCIAL BREAK)

COLLINS: That's a plus sign, people.

HARRIS: Yes.

COLLINS: Twenty points up with the Dow Jones Industrial average right now. Just shy of an hour into the trading day. We are watching that number and many other numbers. Nasdaq as well apparently kind of flat right now. But we're going to check in a little bit later, once again with Susan Lisovicz.

HARRIS: OK. New rules about airline luggage. So, how is a traveler to pack? Good question. Our Gerri Willis is here with a demonstration. Carry on, Gerri? Let's talk about checked bags. Is that what we're talking about?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: No. We're talking about checked bags.

HARRIS: OK.

WILLIS: We're going to talk about the bag that you're going to bring on the plane.

HARRIS: Carry on.

WILLIS: Put in the overhead.

HARRIS: Got you.

WILLIS: All right. You want to get in as much as you can. So first you want to check the size restriction on your carry-on bag. You should know, Tony, most airlines give you what they call 45 linear inches. That's height, width and depth. Add it together and a weight limit of 40 pounds.

Now, this bag you're seeing here is a little smaller. You know what happens. They're going to charge you more if your carry-on bag is oversized, maybe 15 bucks more. And other airlines are probably going to jump on board this. So, make sure you go to your airline's Web site to check out the rules.

Remember, the smaller the bag the less stuff you'll be tempted to pack. Bags with soft side will accommodate your items more easily and bags without wheels are lighter and you can squish them into smaller spaces. And of course, the earlier you board the plane the better chance you have of scoring the primo overhead space. Critical real estate. Critical.

HARRIS: Location, location. Timing, location. Hey, Gerri, how do we get the most out of our packing? WILLIS: Well, OK. So when you start to pack, put the bulkiest clothes in first. Let me show you something here, a little trick we learned.

HARRIS: All right.

WILLIS: You want to roll these clothes up. Because that's the way they take up the least amount of space.

HARRIS: Heidi knows this. She's familiar with this. OK.

COLLINS: And my husband's laughing right now because me packing one little bag is just a joke. But I did learn about the rolling.

HARRIS: OK.

WILLIS: Excellent. It also prevents wrinkles. That's the main point. Don't forget to utilize every space you've got in here. So, you know, the side pockets, everything. You want to put everything in here in these little spaces. And if you have shoes in here, and here are my big running shoes, as you can see.

HARRIS: There you go.

WILLIS: Put your socks in here. OK. Put stuff in the shoes. That's another space that you can utilize as well. And make sure you don't pack things that you won't need. Look, many hotels are going to provide you with the shampoo. They're going to provide you with conditioner. You know, you don't need to bring that stuff. You don't need that. You don't have to carry it. It's always better to pack light.

HARRIS: Well but you know, that's great for you and for Heidi. But, you know, I'm a big, bulky guy.

WILLIS: You are a big, bulky guy.

HARRIS: Thank you.

COLLINS: Wow. I am so glad I'm not in this shot right now.

HARRIS: It is a wonderful moment.

WILLIS: Somebody show Heidi.

COLLINS: I'm not in this.

HARRIS: So, Gerri.

WILLIS: What are we talking about?

HARRIS: Give me some tips. Big bulky guy tips here.

WILLIS: I think of you as a svelte, slim, very handsome man. But if you had big hiking boots, let's say, or maybe a big heavy coat, dress in layers on the plane. And then you won't have to -- then you can wear them on rather than carry them on. I'm never doing this again.

HARRIS: No. That's terrific. How about some advice? How about some advice if you have some overweight -- big overweight checked luggage.

WILLIS: Bags.

HARRIS: Yes, bags. What do you do?

WILLIS: OK, well, if your checked baggage more than 50 pounds, here's an idea. Travel like a model. You may want to consider sending those bags via FedEx or UPS. You can send a 51 pound bag coast to coast for a lot less than the overweight fees. And hey be wary of luggage shipping services. They can be extremely expensive.

And Tony, I have to tell you, there is some good news if you travel with a laptop. There are check point friendly laptop cases that are coming out and may soon be available. And you can just throw your laptop in there and never open it up because the scanners can see right through them. So, that's good news.

HARRIS: Nice. If you would, Gerri, before we lose you, give us a bit of -- Heidi, stop. You are trying to stir up -- just stop, Heidi. Give us a bit of a preview of "ISSUE #1," coming up at noon Eastern, right here on CNN.

WILLIS: Well, you know, we are all over the gas and oil story. As you know it's changing the way Americans live. We're going to show you how and how to manage your money in an economy like this when we've got lots of advice, lots of great info. Join us at noon for "ISSUE #1."

HARRIS: And Gerri, I'm so glad we had this time together.

WILLIS: I am too. I'm a little embarrassed. Sorry.

HARRIS: You have a great day and I'll send you an e-mail.

WILLIS: OK.

COLLINS: Oh, my. It goes on and on. You are as red as your shirt. OK.

Hey, let's get back to -- President Bush is actually going to be talking today in the Rose Garden. Live remarks about his upcoming trip to Japan, to the G8 summit. His final one in fact while he's in office, 10:30 Eastern right here in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: At the bottom of the hour. Welcome back, everyone to the CNN NEWSROOM. I'm Tony Harris.

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

We are awaiting President Bush coming to the podium in the Rose Garden. Going to be talking about his trip to Japan. That is the site of the 2008 G8 summit. He's going to be talking about a variety of things. He will lay all of them out for us coming up here, oh, just about -- supposed to be about a minute or so.

HARRIS: Yes.

COLLINS: But we haven't gotten that two-minute warning yet. So, we will watch it -- oh, we just got it, pardon me. Apparently, he's going to be talking about some accountability to the commitments that some of these other countries have made in the past. Going to bring that up when he goes to Japan, regarding food aid and other things. He will also talk about climate change, counterterrorism, and we think the cost of fuel.

So, we will wait to see that happen coming up here any minute.

HARRIS: You remember what you paid for gas a year ago? Wish you could pay the same price right now? A new Web site makes it possible for next year.

CNNmoney.com's Poppy Harlow has our "Energy Fix" from New York. Poppy, good morning. I am all ears here.

POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Good. Yes, good morning, Tony. I love this story. I think it's going to help a lot of people out there.

Many airlines and other large companies do this all the time. They buy gas at today's prices to guard against higher prices in the future. It's called hedging. And now, you can do it, too. A new Web site called mygallons.com lets you buy as much gas as you want at today's price for your neighborhood and then redeem the gas at a later date if and when the price goes up, which is what we've seen on a daily basis lately.

Now, the company gives you a debit card that is accepted at 95 percent of the gas stations around the country. Today, the nationwide average for gas, another record high, of course above $4.09 a gallon. So, if you had been able to do this a year ago when prices were averaging around $2.95 a gallon, Tony, you would have saved $1.14 a gallon.

HARRIS: Yes.

HARLOW: And that really, really adds up.

HARRIS: Absolutely, you know, this is one of those deals that sounds a bit too good to be true. Is it?

HARLOW: Yes -- in some ways it is, Tony. There are some fees associated with the program, including --

HARRIS: Poppy, Poppy, if I could, let me just interrupt because the president is coming up.

HARLOW: For the president, OK. COLLINS: Let's go ahead and listen in as he lays out his plan for discussions of the G8 Summit in Japan.

(JOINED IN PROGRESS)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In recent summits, G8 countries have made pledges to help developing nations address challenges from health care to education to corruption. Now, we need to show the world that the G8 can be accountable for its promises and deliver results. As I said the other day, we need people who not only make promises, but write checks for the sake of human rights and human dignity, and for the sake of peace.

Accountability is really important when it comes to our work on the continent of Africa. 2005, G8 leaders promised to double the development assistance to Africa by 2010. America's on track to meet our commitments. And in Japan, I'll urge other leaders to fulfill their commitments as well.

We must also fulfill our commitments in the battle against HIV/AIDS and malaria. I've asked Congress to reauthorize and expand the emergency plan for AIDS relief, doubling our funding for this vital effort. It's very important that Congress reauthorize this plan, but in the meantime, we're fulfilling our promises that we made. Not only at the G8, but more importantly to the people of -- on the continent of Africa.

It's important that over the next five years that we support anti-retroviral treatment for approximately 2.5 million people. That we prevent 12 million new AIDS infections and that we care for 12 million people also affected by HIV/AIDS, including five million orphans and vulnerable children.

Last year, the G8 agreed to meet those commitments. They agreed to match. They also agreed to help us reduce malaria in affected countries by half. And, you know, I hope that these countries understand the great promise and hope that comes when we help alleviate this suffering. It's one of my really important agenda items that's going to rally our partners to make commitments and meet commitments.

We'll also discuss additional steps to confront some other challenges such as the need to train health care workers in G8 partner countries in Africa. It's one thing to say we're going to help people with their -- deal with disease, but a lot of these countries need workers that are capable of helping, of reaching out to people in need. We should set a goal to treat at least 75 percent of the people with neglected tropical diseases in the most affected countries.

We've got to work to confront higher food prices. I'm confident we'll be talking about energy and food. On the food issue, I've announced that the United States would make available nearly $1 billion in new resources to bolster global food security. As once again, I'll be going to the G8 talking about the great compassion and concern of the American people and addressing problems. At Toyako, I'll also ask leaders of the G8 to make other important strategic moves to alleviate hunger, such as increasing the shipments of food, fertilizers and seeds to countries in need. It's one thing to talk about the problem. This is a practical way to help countries deal with the lack of food. We need to help severely affected nations grow more of their own food. It's one thing to provide food. Seems like it makes sense to me to say we're going to help you become more agriculturally self-sustaining.

This has been an issue in the United States Congress, by the way. Unfortunately, we tried to get this in the Farm Bill. Our members of Congress decided against this plan, this way forward. But it makes sense for the United States if we're going to be providing food aid to encourage people to grow their own food so we don't have to deal with this problem on a regular basis.

I'm also going to make sure that the world understands the importance of advanced agricultural technologies, including biotechnology to help nations grow food so they don't have to come to the world for help.

We'll also be talking about export restrictions and tariffs and subsidies. We will work to tear down barriers to trade and invest around the world. It's an opportunity for those of us in the G8 and the other nations coming to talk about a successful round of Doha. The United States is firmly committed to Doha. We're working hard to get this done by the end of the year. It'll be a good opportunity in Japan to discuss what we need to do together to open up market access and to reduce agricultural subsidies.

We'll be talking about energy security and, of course, at the same time, the climate change issue. I'll be reminding people that we can have better energy security and we can be better stewards of the environment without sacrificing economic growth. And the principle is pretty simple. It's going to be hard to have the amount of money necessary to invest in new technologies if we don't have the money to spend. And therefore, we need to make sure our economies are vibrant.

We're now implementing new mandatory programs that reduce billions of tons of emissions. I'll remind people at the G8 and other nations that we're taking effective steps. We're going to make available more than $40 billion in loan guarantee authority to support private sector incentives and innovative clean energy technologies. The 2009 budget requests more than $4 billion to support technologies that have the potential to avoid, reduce and sequester greenhouse gases. In other words, we've got a strong agenda when it comes to providing money to encourage the advent of new technologies.

And as well, when we're meeting with leaders of the major economies to discuss shared strategies and practical actions for addressing greenhouse gas emissions. This is called the major economies process that we proposed and G8 leaders endorsed. All this is aiming, by the way, to develop a strategy in which major economies are a part of the strategy.

Look, we can't have an effective agreement unless China and India are a part of it. It's as simple as that. I'm going to remind our partners that's the case. And we want the United Nations frame work convention to be effective. So, we've got to reach common ground on how to proceed. And we're making some progress there, including the knowledge that we've got to have a long-term emissions reduction goal. Mid-term goals with national plans to achieve them and cooperation in key industrial sectors.

And also, we're going to talk about the struggle against violent extremists. The temptation is to kind of say, well, maybe this isn't really a war. Maybe this is just a bunch of disgruntled folks that occasionally come and hurt us. You know, that's not the way I feel about it. This is an ongoing constant struggle to defend our own security and at the same time, help people realize the blessings of liberty. I'll of course talk about Afghanistan and Iraq and ask the G8 to continue to help.

So, this is an historic opportunity to meet, to exchange ideas and to address some of the problems we all face. And I'm looking forward to going.

And now, I'll be glad to answer a couple of questions. Deb?

QUESTION: Thank you, Mr. President. June was the deadliest month for U.S. troops since we began the war in Afghanistan. Has Afghanistan replaced Iraq as the central part of the War on Terror and is al Qaeda and the Taliban taking the upper hand? And also, is it possible that we could send additional U.S. troops there sooner than the 2009 date that you've been talking about?

BUSH: First of all, any time a troop loses their life, whether it be in Afghanistan, Iraq, or elsewhere, our hearts go out to their families. And I am so appreciative that in a time of danger, Americans are willing to step up and volunteer and sacrifice.

Secondly, it has been a tough month in Afghanistan. But it's also been a tough month for the Taliban. You know, one reason why there have been more deaths is because our troops are taking the fight to a tough enemy. You know, that means (ph) he doesn't like our presence there because they don't like the idea of America denying safe haven. America is pressing an ideology that's opposite of theirs. And so, of course there's going to be resistance.

I am confident that the strategy is going to work, which is to confront the Taliban, confront elements of al Qaeda, and at the same time encourage the growth of a free society by good economic policy, good education policy, and good health policy.

We're constantly reviewing troop needs, troop levels. We're halfway through 2008. As I said, we're going to increase the troops by 2009. One thing, however, that you've got to understand is that we have doubled Afghan troops, coalition troops have doubled from two years ago. There is an active presence. And there are more troops there than there were. We're constantly reassessing and seeing whether or not, you know, we can change tactics in order to achieve our objective -- Toby? QUESTION: What do you realistically expect to accomplish at the G8 to deal with soaring oil prices and the weak dollar, which are having effects on the U.S. economy? Even the Chinese now are saying that the United States needs to stabilize the dollar.

BUSH: Well, we're strong dollar people in this administration and have always been for a strong dollar and believe that the relative strengths of our economy will reflect that. One thing we need to make clear when I'm with our partners is that we're not going to become protectionists. We believe in free trade and open markets. One of the fears around the world is that the United States becomes a protectionist nation.

Secondly, I'll remind people it took us a while to get into the energy situation we're in. It's going to take us a while to get out of it. But one thing is for certain here in the United States that we can help alleviate shortages by drilling for oil and gas in our own country, something I've been advocating ever since I've been the president.

I've been reminding our people that we can do so in environmentally-friendly ways. And yet the Congress, the Democratically-controlled Congress now has refused to budge. It makes no sense to watch these gasoline prices rise when we know we can help effect the supply of crude oil which should affect the supply of gasoline prices.

And so, yes, we'll be talking about energy. Ultimately, of course, we're going to transition away from hydrocarbons. But we're now just in a transitional period. And we need more oil to be able to do so. And I'm also going to remind people that our habits are changing. You notice in the newspapers that automobile sales have slowed down dramatically as automobile manufacturers shift from cars that are using more gasoline to cars that are more efficient, more fuel efficient.

And I'll also tell them it's a tough period for American consumers. Nobody likes high gasoline prices. And I fully understand why Americans are concerned about gasoline prices. But I want them to understand fully that we have got the opportunity to find more crude oil here at home in environmentally-friendly ways. And they ought to be writing their Congress people about it. And they ought to say you ought to be opening up ANWR and Outer Continental Shelf and increasing oil shale exploration for the sake of our consumers as well as become less dependent on oil -- Makenna (ph)?

QUESTION: Can you tell me what is the outlook for getting an agreement with the emerging economies that will, you know, limit emissions in a meaningful way in the mid-term? What's the outlook for that and how are we --

BUSH: Yes, well, the first thing, John, is to make sure we get an understanding that all of us need to agree on a long-term goal. And part of the reluctance has been on some nations that are major economies to participate at all. Because initially, I'm confident they thought they were going to get a free pass from any international agreement. I mean, after all, the Kyoto International Agreement excluded major economies. And therefore, they're probably thinking, well maybe history will repeat itself.

The idea is to say, look, we want to be effective. Effectiveness comes when major economies come to the table. The first step is to agree to a long-term goal. I talked to our Arsherpa (ph) about that and he feels pretty good that people are now coming to that clear understanding that we're going to have to come to a long-term goal. Hopefully, we can do it at this meeting. If not, we'll continue to press forward to get it done.

Secondly, one of the -- a lot of the developing world says well, it's unfair, the developed world gets to develop and we don't. Well, our attitude about that is why don't we set up a technology fund and make it easier for people to be able to afford the new technologies that nations like ours and others will bring to the marketplace.

Thirdly, if you really do want to make sure technologies move around the world, we've got to reduce these trade barriers and tariffs that prohibit technologies from moving like they should. And so, I -- you know, we'll see, John. I mean, this is a tough issue. It's tough to get consensus. People -- there's a consensus that it's a problem, but it's tough to get a consensus that all of us have a responsibility to do something about it, not just some. But all of us, so that whatever we do is effective -- Rick Bear (ph).

QUESTION: There have been a spate of recent stories about possible military action against Iran before the end of the year, if not by the U.S. than by Israel. And that prompted Iranian officials to say if they're attacked, they'll essentially shut down the Strait of Hormuz.

One, how confident are you that Israel will not act independently as the diplomatic process moves forward? And, two, what do you make of the mixed messages out of Iran, one of defiance and one of willingness to negotiate?

BUSH: I have always said that all options are on the table. But the first option for the United States is to solve this problem diplomatically. I have also made it clear that you can't solve a problem diplomatically unless there are other people at the table with you. And that is why we have been pursuing multilateral diplomacy when it comes to convincing the Iranians that the free world is sincere about, you know, insisting that they not have the technologies necessary to develop a nuclear weapon.

We're making progress along those lines. There's been numerous security counsel resolutions. And -- in my recent trip to Europe, I was very encouraged to see these leaders stand up and speak out about the need to keep our coalition active and keep the pressure on.

I will talk to Martha Raddits (ph).

QUESTION: Would you strongly discourage Israel from going after Iran militarily? And do you believe when you leave office, Iran will be pursuing a nuclear weapon? BUSH: I have made it very clear to all parties that the first option ought to be to solve this problem diplomatically. The best way to solve it diplomatically is for the United States to work with other nations to send a focused message. And that is that you will be isolated and you will have economic hardship if you continue trying to enrich.

You might remember, I worked closely with Vladimir Putin on this issue. When I said that -- when I asked that one of these enumerable press conferences, did you -- do you think they ought to have a civilian nuclear program. I said, of course they should. But they can't be trusted to enrich.

And therefore, I agree with Russia that Russia -- when Russia said that she will provide enriched uranium for a civilian nuclear power program and will collect the enriched uranium, thereby negating the need for the Iranian regime to enrich at all. And so, we will continue working diplomatically.

Well listen, thank you very much. I've enjoyed being with you. I hope you've enjoyed being with me. You have -- thank you.

HARRIS: And there you go, President Bush at the Rose Garden. What a wonderful day in Washington, D.C., setting the stage for his trip to Japan for the G8 summit.

Just a couple of notes because we have some other breaking news that we need to get to. The president fielding a few questions on, first of all, troop deaths in Afghanistan obviously on the rise, outpacing troop deaths in Iraq last month.

And then, there was a question near the end there on military action against Iran by Israel by the end of the year. The president saying and reaffirming really that all options are on the table for dealing with Iran. But that the first option for his administration is diplomacy.

The president leaves for Japan on Saturday. The G8 summit starts on Monday.

COLLINS: Quickly, that breaking news that we're talking about. CNN has confirmed that Sam Israel III has been arrested. It happened in Southwick, Massachusetts. You will remember him as a Wall Street financier, actually the former manager of the Bayou Group Hedge Fund. He pled guilty in 2005 of defrauding investors $400 million. He is the man who authorities say actually faked his own suicide. It's a very convoluted plot. His girlfriend was actually arrested back -- I believe it was about the 20th of June or so.

The day that he was supposed to go to court, pardon me, to prison after pleading guilty in 2005 which was June 9th, he drove a vehicle on top of the Bear Mountain Bridge which is near the Hudson River there in New York and left the vehicle there. And then, she apparently according to authorities drove him back home. And he had left that note. We've been reporting it on this show. The note that said, quote, "Suicide is painless." Well, once again, CNN is now confirming that federal authorities have arrested Sam Israel III. We are following this story all day long. We have a couple of reporters on it, in fact. And we are going to cover that just as soon as we can talk with them. Once again, he had been sentenced to 20 years in prison. So again, we'll stay on top of it for you.

HARRIS: And we want to show you these pictures just into the CNN NEWSROOM. This is Nicholas Sheley just moments ago, the man police believe is responsible for a two-state killing spree. Eight people beaten to death. He is due in court this morning. This picture would indicate that that process is under way. He is being transported from the jail to where this hearing will take place. Once again, those pictures into CNN just moments ago. Nicholas Sheley on his way for his court appearance.

A lot of breaking news happening in the NEWSROOM. We say that every morning. We're going to take a quick break and come back and give you the latest, update all of our breaking news story in just a moment. You're in the CNN NEWSROOM.

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HARRIS: You know, Starbucks scaling back after growing really at breakneck speed. The coffee giant now plans to close hundreds of stores. Susan Lisovicz is on the floor of the New York Stock Exchange with details.

And Susan, we were talking about this earlier. And you made the point pretty clear. You know, you've got $4 for a gallon of gas and you've got $4 for a latte. You frame it that way, it's a pretty easy choice to make.

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HARRIS: A couple of big stories we're following. Fugitive financier Sam Israel in custody. And a killing spree suspect due in court. We'll give you an update on both of those stories coming up in the NEWSROOM. -

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