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John McCain in Missouri Today; Obama Raised $52 Million in June; Myanmar: Exotic Enough to Attract Tourists, Too Dangerous to Keep Them Coming Back; Look-Alike Electronic Devices Target for Thieves; Primetime Emmy Nominations Announced Today; New Plan for Afghanistan
Aired July 17, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Thanks for joining us on this AMERICAN MORNING.
KIRAN CHETRY, CNN ANCHOR: And right now here's "CNN NEWSROOM" with Tony Harris and Heidi Collins.
TONY HARRIS, CNN ANCHOR: And good morning, everyone. You are in the CNN NEWSROOM. 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 this Thursday morning, July 17th.
Here's what's on the rundown.
Mixed signals on housing starts. Key economic reports just out. Our "ISSUE #1" team will break them down.
HARRIS: Barrier falling? A report says the U.S. may set up a diplomatic station in Iran.
COLLINS: And driving without a drop of gas. Our Miles O'Brien is charged up to show you an electric car, in NEWSROOM.
The nation's sputtering economy. This morning, new snapshots add to the bigger picture. Just minutes ago we learned jobless claims jumped last week. The new figure, $366,000.
New numbers also show residential construction remains gloomy. Construction of single family homes dropped by 5.3 percent last month. It's now at the slowest pace in 17 years.
The price of oil slides a bit more, that's after a drop of $10 a barrel over the last couple of days -- a little good news there. Stocks are expected to rise at the opening bell later this hour, and that's after yesterday's big gains, the largest one-day surge since April.
More good news.
Let's check in with Susan Lisovicz now at the New York Stock Exchange with more on all of these numbers.
Good morning to you, Susan.
SUSAN LISOVICZ CNN CORRESPONDENT: Good morning, Heidi.
And we're looking at an extension of those gains that we saw yesterday. Dow futures telling us that we may see a triple-digit gain right at the open. Of course, that can change in 29 minutes. All major averages yesterday gained 2 percent or better.
Same story boosting stocks today -- better than expected earnings reports and falling oil prices.
Oil is now below $134 a barrel. That's still really high, but it was less than a week ago that crude briefly topped $147 a barrel. The decline due to concerns the American economy is weakening, and that it will lead to a decline in demand for energy. A lot of Americans are driving less these days.
And first really big day for second quarter earnings reports with a trio of Dow 30 companies reporting already. Two more due to report after today's closing bell.
The roundup, JPMorgan, one of the biggest financial companies. Its second quarter earnings declined 53 percent, but in this environment, that's not bad. It was better than expected. Coca-cola also beating expectations and United Technologies saw profits rise more than 10 percent and raised its forecast for the year.
So that's a quick look at what we're watching but there's lots of other things that could change direction very quickly.
COLLINS: Yes. Yes, it's volatile, isn't it? Yes.
LISOVICZ: Absolutely.
COLLINS: All right, Susan Lisovicz, thank you. We'll check again a little bit later.
LISOVICZ: You got it.
HARRIS: And new questions are swirling around IndyMac, the California bank that's now operating under federal control. Since IndyMac failed last Friday, customers have lined up to withdraw their money.
Now a source tells CNN the FBI is investigating the failed bank for fraud. At issue, home loans made to risky borrowers. The source says the investigation is focused primarily on the company, not individuals.
The FBI says it is investigating 21 corporations in the sub prime lending market for possible mortgage fraud.
Fuel conservation amid record high prices, a concern for airlines, as well as motorists, but is one carrier placing safety behind savings?
Here's CNN's Deborah Feyerick.
(BEGIN VIDEOTAPE)
DEBORAH FEYERICK, CNN CORRESPONDENT (voice over): The U.S. Airline Pilots Association took out a full page ad in "USA Today" accusing U.S. Airways management of pressuring captains to reduce fuel levels in order to save money.
Eight pilots filed complaints with the Federal Aviation Administration as did the union. They accused the airline of trying to infringe on the captain's authority by making them fly with less fuel than they're comfortable with.
Well, the Department of Transportation says fuel levels should always be up to the pilot.
MARY PETERS, TRANSPORTATION SECRETARY: The pilot is the last authority that determines how much fuel that plane takes and pilots have that discretion, and are routinely given that discretion, so if a pilot doesn't feel that a plane has enough fuel in it for the trip that he or she is about to make, then they have the discretion of not flying that flight.
FEYERICK: Prior to filing the complaints the eight pilots, all of them senior captains, who normally fly international flights, were called in by U.S. Airways to do fuel conservation training. The union says the pilots were carrying 10 to 15 minutes' worth of extra fuel and calls the training intimidation and harassment.
The U.S. Airways says the eight pilots were way above average in terms of the amount of fuel they had when the planes landed. A spokesman for the airline says if you carry too much fuel, you burn too much fuel and with the high price of oil, it's a balance between having enough to travel safely but also fly efficiently.
(On camera): Captains are fearful now that their jobs are in jeopardy, but U.S. Airways say the training is not punishment and that the jobs are safe.
U.S. Airways will take $2 billion more in fuel costs than it did last year. The FAA says it's looking into the matter.
Deborah Feyerick, CNN, New York.
(END VIDEOTAPE)
COLLINS: All right. We want to get over to Rob Marciano standing by in the Weather Center now following several developing weather stories.
We've got some heat to talk about, we've got an update on Bertha, and maybe some severe weather?
(WEATHER REPORT) HARRIS: Yes.
COLLINS: Oh good. I love that.
MARCIANO: Yes?
COLLINS: Yes.
MARCIANO: Feels good, doesn't it?
COLLINS: Love it.
MARCIANO: Opens up the pores.
HARRIS: There you go.
MARCIANO: Keep your bloods going.
COLLINS: Yes, so does a facial.
All right, Rob, thank you.
MARCIANO: All right.
COLLINS: Talking to you later.
MARCIANO: Thank you.
COLLINS: A big about-face. President Bush now reportedly ready to station diplomats in Iran for the first time in almost 30 years. Britain's "Guardian" newspaper says a formal announcement in is the works.
We want to go live now to CNN White House correspondent Elaine Quijano.
Elaine, a big about-face, huh?
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Yes, you know, the administration would argue this would not be an about-face. First of all, they're not commenting on that article in the "Guardian" newspaper. They're not saying anything right now. It's got nothing to announce is what we've been hearing from them.
But they would argue that because the idea of an interest section, is what it's called in Iran, is out there, it would be to get closer to the Iranian people, not to the Iranian government. So they would take issue with that phrase "about-face."
But as we reported weeks ago, officials here have not denied that this is an idea that's being considered, an interest section, essentially with the -- not a full embassy, keep in mind -- but a kind of de facto embassy that would house U.S. diplomats in Iran to help with visas and facilitate travel for Iranians who want to come to the United States. Now the benefit for the United States would be the ability to more directly reach out to the Iranian people and keep contact with the Iranian regime to a minimum. But, of course, it would also give the United States, Heidi, a much better handle on what is taking place with Iran's political situation.
As you know, the U.S. trying to keep the diplomatic pressure up on the regime to try to curb Iran's nuclear ambitions -- Heidi.
COLLINS: Yes, and this is the first time we've seen something like this. I mean we have a body, if you will, that's very similar to this in Cuba, right?
QUIJANO: That's right. There is an interest section that the United States has in Havana, Cuba. In fact -- and it's interesting to note, Iran itself has its own interest section right here in Washington, D.C. It is housed within the embassy of Pakistan.
So the thinking is that it would be very -- it would be very difficult for Tehran to say no when Iran itself already has its own interest section here in Washington.
But the timing -- it is interesting I should mention that in just a few days -- on Saturday, in fact -- U.S. top diplomat will be sitting down in Geneva, Switzerland, for a meeting that the White House says is already scheduled with Iran's top nuclear negotiator and the foreign policy chief of the European Union.
But, again, all of this happening, Heidi, interestingly, at a time when the U.S. has really been trying to ratchet up the pressure on Iran over its nuclear program -- Heidi.
COLLINS: All right. But we are watching closely. Thanks so much, CNN's Elaine Quijano at the White House for us this morning.
HARRIS: New plan for Afghanistan. With violence there on the rise the U.S. military is considering sending more troops to the war front.
Live now to CNN Pentagon correspondent Barbara Starr.
Barbara, good morning to you. I have to tell you in following your reporting over the months, this seems a situation where it may be easier said than done.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Absolutely, Tony. You know the security situation in Afghanistan is deteriorating and it was long before the Sunday attack in the eastern sector of the country that killed nine U.S. troops, when they came under surprise attack from about 200 insurgents.
Now that incident is under full investigation. What commanders want to know is, why was the intelligence so bad that those young troops had no information indicating that they were facing an insurgent force of that size? That said, Defense Secretary Robert Gates now indicating he is giving plenty of consideration to the plea from commanders for more troops on the ground, and to get them there quickly.
Listen to what he had to say.
(BEGIN VIDEO CLIP)
ROBERT GATES, DEFENSE SECRETARY: We are clearly working very hard to see if there are opportunities to send additional forces sooner, rather than later. No decisions have been made no, recommendations have been made.
(END VIDEO CLIP)
STARR: Easier said than done, as you pointed out, Tony, right at the top. There simple aren't a large number of U.S. troops available to send, all tied down in Iraq. The long-standing view is they have to get the troops out of Iraq first before they can get them home, rested and turn anybody around, and send them to Afghanistan.
So what's the solution now? What's the secretary talking about?
Small numbers perhaps, security forces, reconnaissance units, the type of thing that could at least lend a hand to what's going on, on the ground. There are about 2,200 Marines in the region near Kuwait. They're the standby force if there's an emergency. If they get around to sending them, that will be very interesting.
People will be watching that very closely, because then there's really no standby force. So a lot of looking at what's in the system, where can they move the chess pieces around, where could they get the troops in Afghanistan some help and get it there quick -- Tony.
HARRIS: Now you are one of the people who will be watching this very closely for us.
Barbara Starr at the Pentagon -- Barbara, thank you.
STARR: Sure.
COLLINS: One decade ago Detroit was a-buzz about electric cars. So who pulled the plug?
(COMMERCIAL BREAK)
BETTY NGUYEN, CNN ANCHOR: I'm Betty Nguyen.
Coming up, Myanmar relies on tourism for much of its revenue. So what's keeping tourists away? I'll take you on a search for answers.
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN, the most trusted name in news. Now back to the CNN NEWSROOM.
COLLINS: Pulling the plug on electric cars. $4 a gallon gas may have you wondering what happened to it?
CNN's Miles O'Brien is joining us now with some answers.
So are you in one? Is that one of them? I'm sure it is.
MILES O'BRIEN, CNN CHIEF TECHNOLOGY CORRESPONDENT: I -- yes, listen. How quiet it is. You know...
COLLINS: Sounds like a golf cart.
O'BRIEN: ... a lot of people think of -- well, that's it, everybody thinks of golf carts when they think of electric cars. But that's part of the problem with electric cars. There's this perception thing, the notion that they aren't much better than electric car.
This is an '89 Doran. This is a prototype from, you know, 20 years ago, and it's pretty cool. It can do 60 miles an hour. Has a decent amount of range. What electric car enthusiasts will tell you this is, this is the problem -- people had the wrong perception of them and what's worse, the U.S. automakers are not producing a new practical electric vehicle.
I drove recently, Heidi, with a guy in San Francisco, who is a huge electric car enthusiast.
(BEGIN VIDEOTAPE)
MARC GELLER, ELECTRIC CAR OWNER: I could start it. I forget sometimes. Started or not started.
O'BRIEN (voice over): Once you get Marc Geller started on the subject of electric cars, there's no stopping him.
(On camera): So it really doesn't inconvenience you?
GELLER: There's definitely no inconvenience, and there's a tremendous amount of pleasure in passing gas stations and watching the price rise.
O'BRIEN (voice over): Marc's been breezing by gas pumps in San Francisco for seven years. This is his second all-electric car, a used plug-in Toyota RAV-4, used because right now there isn't a new practical electric car on the U.S. market.
(On camera): Is it frustrating?
GELLER: It's incredibly frustrating. It's frustrating, because every day I meet people who would like to be driving this car.
O'BRIEN (voice over): Ten years ago, Detroit seemed positively plugged in.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: The electric car is here. (END VIDEO CLIP)
O'BRIEN: General Motors built and leased about 1,000 of the fabled EV1s after a California law mandated sales of zero emission vehicles.
UNIDENTIFIED MALE: I think it's the future. I'm happy.
O'BRIEN: But by 2003, California backed down. GM repo'd the EV1s and destroyed them amid protests. Marc was among the protesters.
So why does he think Detroit pulled the plug?
GELLER: I would say because they are fearful of how disruptive plug-in cars will be, and how unattractive their old product line will appear.
O'BRIEN: Marc says a fully charged battery takes him 120 miles. Normally a charge overnight at home is more than enough to get him through the day.
And here's the kicker. Marc works for a solar power company. His own roof is covered with solar cells.
GELLER: As soon as I got the car, I realize, now I understand why this makes sense. I can create my own electricity.
O'BRIEN (on camera): Would you call yourself an electric car zealot?
GELLER: A zealot might be a little strong, but I truly believe that this is an option consumers would love to be able to purchase.
(END VIDEOTAPE)
O'BRIEN: But if you want to purchase an electric vehicle like this RAV-4 -- this is a lot like Marc Geller's car in San Francisco, you can't get them new, because they all got destroyed except for a few that were owned by people like this one.
By the way, check out under the hood. It's pretty simple there, Heidi. Basic...
COLLINS: Yes.
O'BRIEN: That's mostly for the air conditioning unit and all that stuff. But if you want to get one, you got to go on eBay. And you know what you'll spend for this? 65,000 bucks anyhow.
COLLINS: Wow.
O'BRIEN: So there's demand for these things. There's only about 500 or 600 of them. Here's another one that was -- of an earlier vintage, looks a little more complicated. But I love this one. Look at the Sparrow. This is a car. This will do 70 miles an hour, if you dare. COLLINS: Really? Downhill or...
O'BRIEN: One seat, three wheels. I would say that's a real speed demon and Stephen Taylor, the guy who owns all these cars, and was nice enough to bring them out for us, says he got in an orange for visibility. I don't blame him.
COLLINS: Wow. That is cool. Are you going to drive that one?
O'BRIEN: Yes, yes, I'll get into it right now. As a matter of fact I'm headed off right now.
COLLINS: Yes, that was your queue.
O'BRIEN: You can only get in on this side. Can you shut that? Shut that hood for me there, will you, Mike? It's not easy to get into, Heidi, I got to tell you that.
COLLINS: Yes.
O'BRIEN: I would love to have this in New York, though, you know?
COLLINS: Yes. Minimized parking, right? Very easily.
O'BRIEN: Wouldn't that be nice? The real issue, though, in Manhattan, where would I plug it in? I got to worry about that.
COLLINS: Well, that's true.
O'BRIEN: Anyway, I'll see you later.
COLLINS: Adios. Looks good. Look at...
HARRIS: Oh man.
COLLINS: Looks like a little spacecraft, doesn't it?
HARRIS: Oh look at him.
COLLINS: It's cool. All right, Miles O'Brien reporting for us...
HARRIS: Man oh man.
COLLINS: ... and driving for us. Let's just stay on that.
HARRIS: No, no, no, let's not.
COLLINS: I like it. Bye-bye. It does look pretty, though, isn't it?
HARRIS: Al Gore -- Al Gore's power play, not political, but electrical today. Al Gore will challenge the U.S. to produce all its electricity from so-called clean sources within 10 years. He admits it's an ambitious and expensive goal but he says it will pay itself back many times over.
You can see Gore's energy speech live during "ISSUE #1," that's at noon Eastern Time and he will be a guest on "LARRY KING LIVE" tonight at 9:00 Eastern, that's 6:00 Pacific.
COLLINS: Fighting fat. Which diet works best? Medical correspondent Elizabeth Cohen has the skinny on the news desk.
(COMMERCIAL BREAK)
HARRIS: Low carb, low-fat or Mediterranean. That's diet talk for weight loss plans, and a new study looks into which ones work best. Hmm.
Elizabeth Cohen here with some ideas and some thoughts, and the results of some of the findings of this study.
People on these plans, was there a clear winner?
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: You know, there were kind of three clear losers.
HARRIS: Losers?
COHEN: Losers.
HARRIS: Hey.
COHEN: And not in a good way. Not -- losers in a good way.
HARRIS: Oh explain, please.
COHEN: They do not do terribly well on this diet. I'm going to show you some numbers...
HARRIS: OK.
COHEN: ... that will make you go eh.
So let's take a look.
HARRIS: OK.
COHEN: Let's take a look at the numbers. These were folks who weighed about 200 pounds. They were on the diets for two years. The folks on the low-fat diet in two years they lost six pounds.
HARRIS: Two years?
COHEN: They're starting out at 200 pounds, 6 pounds is really not a great weight loss.
HARRIS: I agree.
COHEN: Folks on a Mediterranean diet, which is high in things like olive oil and fish, they lost 10 pounds in the two years. Folks on the low-carb, sort of an Atkins style diet, they lost -- also about 10 pounds.
So it was relatively unimpressive weight loss.
HARRIS: Yes.
COHEN: I want to say that part of the study was funded by the Atkins Foundation. That's an important thing to know.
And Tony, I feel like -- it's July but it's Groundhog Day.
HARRIS: OK.
COHEN: Because this study found what so many other studies have found, which is that, in the beginning...
HARRIS: Yes.
COHEN: ... you lose weight.
HARRIS: Yes.
COHEN: But you know what? Over the months that follow, people tend to gain it right back again.
HARRIS: Yes.
COHEN: They eat most of it right back again.
HARRIS: Two years? I mean those -- that's not a lot.
COHEN: Six pounds in two years.
HARRIS: I mean come on.
COHEN: When you started out at 200 pounds...
HARRIS: Yes.
COHEN: Yes, not great.
HARRIS: How about exercise, because we know that's a very important component to any weight loss plan?
COHEN: Absolutely, and in this study -- this one in the ""New England Journal of Medicine," exercise is not a part of the diet plan. So maybe it's not surprising they didn't do very well.
Yes, exercise, exercise, exercise is really crucial, not just to losing the weight, but to keeping it off and remember, it's that keeping it off part...
HARRIS: Yes.
COHEN: ... that is really crucial. People are pretty good at losing weight. It's the keeping it off part that's tough.
HARRIS: Yes, those aren't -- and you're right, maybe not a clear winner at all in this, and maybe some losers.
Elizabeth Cohen with us this morning, good to see you.
COHEN: Good to see you.
HARRIS: Thank you.
And still to come, a baby boomlet. The government says more than 4.25 million babies were born in the United States last year. The birth rate hasn't been that high since, what, 1957.
One population expert says it's the result of a perfect storm. Women in their 20s and 30s having families, more women in their 40s giving birth, and a growing immigrant population.
Investors may be hurting, but not the CEOs of Fannie Mae and Freddie Mac. What congressional overseers are saying about their salaries.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins and Tony Harris.
HARRIS: Approaching the half hour. Welcome back, everyone, to the CNN NEWSROOM. I'm Tony Harris.
COLLINS: Hi, everybody. I'm Heidi Collins.
We've got a little bit of good news today on the economic front. So let's talk about that first as we wait for the opening bell. A live shot there for you.
Price of oil down some more after a couple of days. It's down $10 a barrel. So we love that one.
HARRIS: Over the last two days, yes, that great.
COLLINS: Yes. And then also stocks are expected to rise when that bell rings today, because yesterday Dow gained 276 points. We haven't seen that in a while so it was quite a surge yesterday. So hopefully we're going to see some of those similar numbers today.
That's the greatest news as far as jobless claims go or housing starts, residential construction, in fact. But we will hang on to that good news because we really like -- there you have the opening bell -- our numbers yesterday a lot.
So we'll take a look at how things open up in just a moment here.
HARRIS: OK. Federal help for Fannie Mae and Freddie Mac. But will it come with strings attached? Congressional overseers want to know why CEOs are doing so well when investors are hurting.
CNN's Brian Todd reports.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): A mortgage meltdown, stock prices for two of the nation's giant lenders plummet, amid fears about the historic downturn in the housing market. Still, the CEOs of Fannie Mae and Freddie Mac are bringing in huge salaries.
Daniel Mudd of Fannie Mae, more than $12 million in salary, bonuses and long-term incentives last year. Freddie Mac's Richard Syron got $10.5 million last year.
REP. BARNEY FRANK (D), MASSACHUSETTS: It's not appropriate for people to be making tens of millions of dollars if they are reliant on a potential help from the taxpayers.
TODD: The two companies were created by Congress to help provide mortgage funding, with the understanding that the government, the taxpayers, would back them up financially if they got in trouble.
That hasn't happened yet. But Democratic Congressman Barney Frank wants to regulate how much the top executives of Fannie and Freddie make.
FRANK: We're not asking anybody to take an oath of poverty, but I believe that paying at a level of a couple of million dollars a year, $3 million a year, that's going to get you the talent you need.
TODD: But both companies are privately run, trade on the open market. They tell CNN their executive stock awards dropped last year because the firm's stock prices went down. A Freddie Mac official said that company's board believe Richard Syron's salary is justified, because he led them to a greater share of the mortgage market.
One analyst says, even with quasi government involvement in Fannie and Freddie, maybe we shouldn't be so outraged at those salaries.
MAURNA DESMOND, FORBES.COM: Fundamentally, companies need to offer compensation for talent. Combined, the two firms shoulder $5.2 trillion in outstanding government debt. That's about half of the outstanding U.S. mortgage market. And they're as important, if not more important, than any Wall Street firm.
TODD: And Maurna Desmond points out the Fannie and Freddie execs make much less than the CEOs of many Wall Street firms.
(on camera): Still, given the foreclosure prices, Congress will push hard to have more control over these lenders. Under Barney Frank's bill, if Freddie Mac and Fannie Mae tap into the government's proposed expanded line of credit, meaning more potential money from taxpayers, their shareholders and executives would not be paid dividends if the stock prices of those companies go back up.
Brian Todd, CNN, Washington.
(END VIDEOTAPE) COLLINS: Presidential politics. John McCain in Missouri today. McCain holds town hall meeting in Kansas City, following his speech at the NAACP convention yesterday. That will happen at 12:30 Eastern and you will see it live, of course, right here on CNN.
Barack Obama is off the trail, but in the money. The campaign says Obama raised $52 million in June. That's more than double the $22 million that McCain campaign took in last month.
HARRIS: To the politics of race now. A new poll suggests that Obama presidency would do little to change race relations. CNN's senior political correspondent Candy Crowley explains.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SENIOR POLITICAL ANALYST (voice-over): John McCain went before the NAACP and recognized the obvious, Barack Obama is making history.
SEN. JOHN MCCAIN (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: Of course, I would prefer his success not to continue quite as long as he hopes. But it does make you and me proud to know the country I've loved and served all my life, still a work in progress and always improving.
CROWLEY: But in New York Times/CBS News Poll shows despite Obama's already historic run, Americans still see things in black and white. 59 percent of blacks describe race relations as generally bad in this country. Only 34 percent of whites say that.
What's more, only half of black respondents think an Obama presidency would change race relations.
RON WALTERS, DIR. AFRICAN AMERICAN LEADER CENTER: It lends us some credence to the fact that even if Barack Obama is now the nominee of the party or even if he wins the presidency, it's not going to have a profound effect upon race relations in the United States.
CROWLEY: And while Obama battles McCain to become leader of the Western world, the poll also found 64 percent of blacks think whites have a better chance of getting ahead. Just 35 percent of whites thought that.
It goes on, with blacks more likely than whites to see Obama as caring about the problems of people like them and more likely to describe him as patriotic. Whites are more likely to see Obama as a politician who says what he thinks people want to hear.
The truth is, blacks have voted Democratic for decades. No Democratic presidential nominee has won the white vote since the early '70s. These things take time.
WALTERS: You have to look at American culture and the fact that it's been 400 years for these kind of racial attitudes to develop, racial behaviors to materialize. And you're certainly not going to wipe that out with just someone being elected to any office in the United States.
CROWLEY: Making history does not change history.
Candy Crowley, CNN, Washington.
(END VIDEOTAPE)
COLLINS: President Bush is among those gathering today to remember Tony Snow. The funeral service for the former White House spokesman taking place in Washington this morning. A live shot there for you, of some people, I believe, already starting to gather.
Snow died of colon cancer on Saturday at the age of 53. He was White House press secretary from May 2006 until last September. Prior to that, he was a columnist, commentator and talk show host.
Snow joined CNN as a contributor in April. He is survived by his wife and three children.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
BETTY NGUYEN, CNN ANCHOR: I'm Betty Nguyen. Coming up, Myanmar relies on tourism for much of its revenue. So, what's keeping tourists away? I'll take you on a search for answers.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
COLLINS: Rob Marciano standing by now to give us an idea --
HARRIS: Where is he?
COLLINS: Sitting by, standing by, sitting by.
HARRIS: All right.
ROB MARCIANO, CNN METEOROLOGIST: Strategizing exactly how we're going to utilize this 1 minute and 45 seconds.
HARRIS: Yes.
COLLINS: All right, go.
(WEATHER REPORT)
HARRIS: You know, oftentimes up here, we discuss maybe sending that recon aircraft over to the weather center to find you, Rob.
MARCIANO: Well, send the G-5.
COLLINS: C-130 -- Oh, G-5. All right.
HARRIS: A G-5. MARCIANO: They've got one G-5 that they (INAUDIBLE). That's how I prefer to roll.
HARRIS: That's the deal. Thanks, Rob.
Exotic enough to attract tourists, too dangerous to keep them coming back. CNN's Betty Nguyen inside Myanmar.
(BEGIN VIDEOTAPE)
BETTY NGUYEN, CNN ANCHOR (on camera): Political sanctions have cut Myanmar off from much of the world, which is why many locals rely on tourists to make a living. The problem is few are coming here.
(voice-over): Driving through Yangon, you won't find tourists strolling through the streets. In fact, you'll be lucky to find many tourists at all. Even at the country's main attraction, the Shwedagon Pagoda. Today's log shows only eight foreigners have toured this ancient shrine. More recently, it served as a launching site for the September 2007 protest.
Many were beaten and killed for rising up against the Myanmar government. Today, apparently, fear prevents most from even talking about. Our guide would rather show us for centuries of well-carved detail was ripped to shreds by cyclone Nargis.
UNIDENTIFIED FEMALE: Most of them are heavily washed off dry by the Nargis cyclone. Only, (INAUDIBLE).
NGUYEN (on camera): So, just about every part of the pavilion here was destroyed the roof of it.
(voice-over): That storm killed nearly 85,000 people in early May, and some 50,000 remain missing. Now, two months later, people are still trying to rebuild their lives and find peace through prayer. And it might take some divine intervention to get foreigners packing into this tourist market on the hunt for gems and jade.
(on camera): So, right now, business is no good?
UNIDENTIFIED MALE: No good, yes.
NGUYEN (voice-over): This jeweler blames the lack of business on the monsoon season. And judging from the downpours, he may be right. Though others say there's more to it than that.
Business is not good?
UNIDENTIFIED MALE: No good this time. No good.
NGUYEN: Why?
UNIDENTIFIED MALE: I don't know this time. The problem is the Nargis before.
NGUYEN: The cyclone? UNIDENTIFIED MALE: The cyclone, yes.
NGUYEN (on camera): While the locals won't say it publicly, many will quietly tell you they blame their oppressive military government. It's hard to really pinpoint what's keeping tourists away from Myanmar, but one thing is certain, there's been a long-standing debate over whether tourists should even come here at all.
(voice-over): Back in 1995, opposition leader ** urged tourists not to visit Myanmar because their money would fuel the junta government. That same regime ignored elections that would have made her the country's leader and instead put her under house arrest where she remains today.
Still, others argue if tourists don't come, the world will never see the poverty, oppression and despair. But if tourists are hoping to get a glimpse of the cyclone devastation, don't bother. The government won't allow them in the Irrawaddy delta, even if they travel across the world to help.
(on camera): Myanmar's government isn't making it easy for foreigners who do want to come here. Journalists are strictly prohibited and tourist wanting to get a visa are finding it increasingly difficult especially if you have an American passport.
Betty Nguyen, CNN, Yangon, Myanmar.
(END VIDEOTAPE)
COLLINS: Look-alike electronic devices, one is a Bluetooth, the other is a hearing implant. The latter also a target of thieves.
(COMMERCIAL BREAK)
COLLINS: I want to let you know we are keeping our eye on the funeral services for Tony Snow, former White House press secretary. They are beginning to arrive at Washington Shrine of the Immaculate Conception. We have that live shot for you.
A very sad day for an awful lot of people who knew Tony Snow. President Bush will, of course, be at his funeral. He will be one of the people eulogizing him, in fact. Tony Snow, once again, White House press secretary, from May of 2006 until last September. He died on Saturday at the age of 53.
HARRIS: Standing room only last night at a memorial for Army Lieutenant Holly Wimunc. More than 200 people showed up to pay their respects. Wimunc is the third female soldier at Fort Bragg to be killed in seven months. Her husband, Marine Corporal John Wimunc, is charged with murder.
The FAA investigating a small plane crash in Central Oregon. Officials say the twin engine, Cessna, crashed at Sun River Airport and burst into flames. A witness says the plane hit a runway and lost control. The Associated Press reporting the plane was registered to Prosoft Technology of Bakersfield, California. And the AP adds that the company's CEO was killed and was also the only one on board.
COLLINS: An implant allowed a boy to hear for the first time, but silence fell on him again after thieves got the wrong idea. CNN's Chris Lawrence reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED CHILD: Three.
UNIDENTIFIED FEMALE: Three.
UNIDENTIFIED CHILD: Four.
UNIDENTIFIED FEMALE: Four.
UNIDENTIFIED CHILD: Five.
UNIDENTIFIED FEMALE: Five.
CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): Every time Jose Franco speaks, his mom hears a miracle.
JOSE FRANCO, USES COCHLEAR IMPLANT: Whoa! Spiderman.
HILDA GIRON, JOSE'S MOTHER: I just thought he was never going to say mom.
LAWRENCE: But now she's worried again. Jose is deaf. It's only this earpiece working with a tiny receiver in his skull that allows him to process sound. But thieves think it's some kind of expensive Bluetooth, and keep trying to steal it.
The first time, they ripped it off at a grocery store. And right after he got it back, someone snatched it off his ear at McDonald's.
GIRON: (INAUDIBLE). I couldn't think.
LAWRENCE: Now, Jose has to use a backup. But if it gets stolen again, too bad.
BARBARA HECHT, JOHN TRACY CLINIC: My understanding is that people can get a replacement every few years, but they really only get one.
LAWRENCE: Barbara Hecht runs a clinic that helps deaf children memorize sounds.
HECHT: What do you hear when you're making popcorn?
UNIDENTIFIED CHILD: Pop, pop, pop.
LAWRENCE: The cochlear implant converts sound into electrical signals. And without his earpiece, Jose can barely hear a jackhammer or a roaring chainsaw just a few feet away. His world would sound like this.
Jose was scared when they stole his earpiece. That and --
LAWRENCE: Sad?
FRANCO: Sad.
LAWRENCE (on camera): Jose, when you got your implant back in, were you happy?
FRANCO: Happy.
LAWRENCE (voice-over): Teachers say some kids used to feel a little self-conscious about the earpiece.
HECHT: So, we were actually kind of thrilled that people are wearing these Bluetooth devices and headsets because our kids kind of fit in.
LAWRENCE: No one thought that meant becoming the targets of criminals, who can't tell a Bluetooth from this.
(on camera): One big difference? This Bluetooth costs about $100. The implant earpiece? $6,000.
Chris Lawrence, CNN, Los Angeles.
(END VIDEOTAPE)
HARRIS: Going for TV gold. Find out if your favorite programs are up for an Emmy.
But first, the sun in your skin. CNN's Judy Fortin takes a look at how you can protect yourself in this week's "30, 40, 50" health report.
(BEGIN VIDEOTAPE)
JUDY FORTIN, CNN MEDICAL CORRESPONDENT (voice-over): Lifeguards Jeremy Nork (ph) and Robbie Marcwerntz are in the sun all day. The rays are intense. So, they take extra precautions.
ROBBIE MARCWERNTZ, LIFEGUARD: I have to put sun tan lotion on constantly throughout the day. It does help, but I still do get burned.
UNIDENTIFIED MALE: The first couple of weeks when you're start working when you're not tan at all, you'll definitely moisturize.
FORTIN: Although, they're only in their 20s, doctors believe that how these guys treat their skin today will make a huge impact on how their skin ages.
DR. THOMAS NIGRA, WASHINGTON HOSPITAL CENTER: What you do in your teens and 20s shows up in your 30s. So, what you do in your 30s doesn't really mean a total protection.
FORTIN: In our 30s, small lines and wrinkles begin to show on the face. And more sun exposure means more wrinkles. The reason? Too much UV rays from the sun.
NIGRA: The light penetrates deeply into the dermis, the collagen and elastin to suddenly get lax, particularly the elastin, and the skin sags.
FORTIN: Some sunscreen can protect you from further damage, but not all sun screens are the same. According to a recent survey by the environmental working group, many sun screens don't adequately do the job. The consumer advocacy group says look for ones that protects against UVA and UVB rays of the sun.
NIGRA: I like to think of the UVB spectrum has the burning spectrum. B for burning and the A spectrum as A for aging.
FORTIN: Products that contain zinc oxide or titanium dioxide do the best job with an SPF 30 or higher if you're sunbathing and an SPF 15 on a daily basis.
Around water, make sure it's waterproof and not water resistant. To keep skin from drying, use a moisturizer at night especially after a day in the sun.
In our 40s and 50s, we start to get age spots. Doctors say look for retinoids, which were a chemical form of vitamin A. They help clear up some of those spots and rejuvenate the skin.
NIGRA: My patients have been using it and they swear by the anti-aging effects, and I can see its results.
FORTIN: Also watch for skin cancer, although skin cancers like basal cell carcinoma and melanoma can happen at any time, more cases are reported in this age group. Keep an eye on moles and dark spots. They could be signs of developing cancer lesions. Judy Fortin, CNN, Atlanta.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
COLLINS: You already know to catch us weekday mornings from 9:00 until noon Eastern, but did you know you can take us with you anywhere on iPod. I hear Tony is going to be singing a song on the podcast today.
HARRIS: OK. Not that "Bleeding Love" song. I'll tell you that.
COLLINS: It's your favorite. The CNN NEWSROOM podcast, available 24/7 right on your iPod.
HARRIS: Rip my own heart out.
And the nominees are -- the primetime Emmy nominations were announced just a short time ago. And for the first time, two programs from basic cable made the list. Kareen Wynter has highlights.
(BEGIN VIDEOTAPE) KAREEN WYNTER, CNN GENERAL ASSIGNMENT CORRESPONDENT (on camera): The excitement filled the air here at the Academy of Television Arts and Sciences where the 60th Annual Emmy Nominations were just announced.
Now, leading the pack, HBO, no real surprise there, taking in 23 nominations for its mini series "John Adams." And the most overall nominations, 85 of any network, this followed by NBC's comedy, "30 Rock," which now have 17 nominations and rounding out the big three was AMC's "Madmen" with 16 nominations, which is really a coup for basic cable.
"Damages" and "Madmen," the first two basic cable programs to be nominated in the drama category. The statues will be handed out on September 21st at the new Nokia Theater in downtown Los Angeles.
Kareen Wynter, CNN, North Hollywood.
(END VIDEOTAPE)
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 rundown.
Market bounce back. Two days of dropping oil prices fuel a Wall Street recovery. Will the good times roll on?
COLLINS: More crude talk. Oil speculators have taken some heat for higher prices. Should they get a shout-out today?
HARRIS: And reinforcements to Afghanistan. Some U.S. units could be there in weeks but not brigades. It is Thursday, July 17th, and you are in the CNN NEWSROOM.
New plan for Afghanistan. With violence there on the rise, the U.S. military now considering sending more troops to the war front.
Live now to CNN Pentagon correspondent Barbara Starr.
Barbara, you know, it really doesn't sound like there are many good options for getting large numbers of troops to Afghanistan.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: That is correct, Tony. There are no good options for that. And it can all be summed up in one word -- Iraq. In fact, of course, such a large number of U.S. troops still tied down in Iraq that they simply don't have the flexibility at the Pentagon to turn around and send a large number to Afghanistan.
But, yesterday, Defense Secretary Robert Gates made clear that he is hearing the commanders on the ground in Afghanistan and that they need more troops as soon as possible and he's going to start looking around to see who he can send.
There's a Marine unit right now off Kuwait. They're sort of a reserve force, if you will, for emergencies.
