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American Morning

Obama Heads to Paris to Meet President Sarkozy; John McCain Sharpens Attack on Obama's Foreign Policy; Qantas Jet Lands With Gaping Hole in Fuselage; Father Forgives Daughter's Killer; Woman Fights Foreclosure to Keep Her Home

Aired July 25, 2008 - 07:00   ET

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


JOHN ROBERTS, CNN ANCHOR: Just crossing the top of the hour and here are this morning's top stories.
Breaking this morning, Barack Obama Paris bound right now. He's going to meet with French President Nicolas Sarkozy today. Obama called for renewed European support for the war in Afghanistan yesterday in Berlin in front of an estimated 200,000 people.

Secretary of State Condoleezza Rice with a serious message for Pakistan. She says that the government must do more to control militants crossing into Afghanistan. Rice said there has been an up tick in violence not just against U.S. forces but the Afghan people as well.

A plane plunging 20,000 feet. A gaping hole in the fuselage. It was a terrorizing flight for 300 passengers aboard a Qantas jet from Hong Kong to Melbourne today.

Brand-new video from inside the plane as oxygen masks came down and people braced for a crash landing. The airline says it had to make an emergency landing in Manila after a midair rupture. Passengers say the plane lost cabin pressure during the 30 second dive and a door popped open. We're going to hear from some of those passengers in a just a few minutes' time. Fortunately, none of them was injured.

Back to our top story this morning, Barack Obama now heading for France to meet with another world leader. CNN's chief international correspondent Christiane Amanpour joins us. She is live outside the Elysee Palace in Paris. Good morning to you, Christiane.

CHRISTIANE AMANPOUR, CHIEF INTERNATIONAL CORRESPONDENT: Good morning, John. And we expect Barack Obama to be here in about three hours or more from now. He's staying longer than expected in Berlin, where yesterday he had a rapturous welcome from some 200,000 people. Not just Germans but a lot of Americans and people from all over Europe and as far away as Australia. That cosmopolitan city turned out to hear him speak.

He talked a lot about rebuilding and rebridging the Transatlantic Alliance. He talked about not only what America would do if he was the president but also what Europe should do, particularly talking about Germany should come and help a little bit more, stabilizing the situation in Afghanistan. He also acknowledged something that many people around the world feel very deeply and that is the gap, the divisions they've felt with the United States over the last eight years.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: People of Berlin, people of the world, this is our moment. This is our time. I know my country is not perfected itself.

At times, we've struggled to keep the promise of liberty and equality for all of our people. We've made our share of mistakes. And there are times when our actions around the world have not lived up to our best intentions.

(END VIDEO CLIP)

AMANPOUR: But mindful, of course, that his main audience was back home in the United States, the American voters, he quickly went on to say that he loves his country and that for the last 200 years, his country has struggled and sacrificed for a more perfect union and to make a more perfect world. And he issued a challenge to the people who turned out to see him. That we need now to seize this moment and go on and make history as we move forward into the 21st century.

Barack Obama also met some officials there. Of course, the Chancellor Angela Merkel. And he will meet here in Paris with the president, Nicolas Sarkozy, in Elysee, just to my left. He's also expected to hold a press conference.

Not sure whether he'll see any of the sights. He didn't in Berlin. He wasn't able to go to the famous remnants of the Berlin Wall which was really the setting for a lot of his speech. He talked a lot about how Berlin Wall was during the time when the communists has surrounded and divided it with the Berlin Wall. But he didn't go to see it and he probably won't see here the replica of the Statue of Liberty, which after all it was France who donated that to the United States so many years ago.

Back to you, John.

ROBERTS: All right. Christiane Amanpour for us in Paris this morning. And again, a note that his arrival there in Paris delayed just a little bit because he's lingered in Berlin a little longer than expected -- Kiran.

KIRAN CHETRY, CNN ANCHOR: Well, a new CNN poll of polls shows the presidential race still tight. John McCain trailing Barack Obama, 41 to 44 percent. Fifteen percent say they still have not made up their mind.

While Barack Obama was speaking to thousands of people in Germany who can't vote for him, John McCain was talking to dozens in Ohio who can. McCain also took some swipes at Obama.

As our Mary Snow reports, it's all part of the plan to win back some of the headlines -- Mary.

MARY SNOW, CNN CORRESPONDENT: John and Kiran, John McCain was trying to keep the focus on domestic issues. But the focus shifted toward rival Barack Obama. The McCain camp took a swipe at Obama's Berlin speech calling it a premature victory lap. And McCain is sharpening attacks on Obama's Iraq policy.

(BEGIN VIDEOTAPE)

SNOW (voice-over): With his Democratic opponent stealing the spotlight in Berlin, Republican presidential hopeful Senator John McCain stuck to a German scene but at a German restaurant in Columbus, Ohio. Was he trying to make a point?

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I'd love to give a speech in Germany to a political speech where or a speech that maybe the German people would be interested in. But I'd much prefer to do it as president of the United States rather than as a candidate for the office of presidency.

SNOW: While there McCain sat down with small business owners to talk about the economy, health care and gas prices. While keeping one eye on domestic issues, his other remains watchful of Obama's stand on Iraq, criticizing him for not supporting the surge. Now, Obama is firing back at his Republican challenger for saying this.

MCCAIN: It seems to me that Senator Obama would rather lose a war in order to win a political campaign.

SNOW: Obama told NBC News he was disappointed by McCain's language.

(BEGIN VIDEO CLIP, "NBC NIGHTLY NEWS")

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: For him to suggest that I don't -- for him to suggest that somehow I'm less concerned about the safety of my wife and daughter than he is, I think was -- was unfortunate.

(END VIDEO CLIP)

SNOW: McCain is standing firm.

MCCAIN: All of us care about our children. I'm sure that every American does. The point is that Senator Obama doesn't have an understanding of what was at stake with the surge, what is at stake in the future for the security of this nation. I stand by my comments. And I think the record authenticates it.

SNOW: But one political observer says McCain's suggestion that Obama is more interested in winning the election than the war could cause a backlash.

LARRY SABATO, UNIVERSITY OF VIRGINIA: It's red meat for the Republican base. But this election as all presidential elections will be decided by the swing independent moderates. And they tend not to like language like that.

(END VIDEOTAPE) SNOW: The McCain camp is doing what it can to keep Obama from using his trip overseas to bolster his foreign policy credentials. And in vying for the spotlight, McCain is scheduled to meet with the Dalai Lama later today -- John and Kiran.

CHETRY: That meeting with the Dalai Lama is going to be taking place in Aspen, Colorado, this afternoon. And McCain also has a speech in Denver. It's at 1:30 Eastern time and we'll, of course, bring it to you live.

ROBERTS: Seven minutes after the hour. Stories making news across the country this morning.

In New York City, the group Autism United will announce a list of major companies pulling their sponsorship from Michael Savage's radio show. Last week Savage said 99 percent of autistic children are "brats" and they're faking it. One out of every 150 children in the United States is diagnosed with autism.

A new government report says last August's fatal mine collapse in Utah was not caused by an earthquake. Rather the mine caved in because there weren't enough support pillars in place. Officials announced $1.85 million in fines. That's the highest ever imposed on a mine owner. Six miners died in the collapse along with three rescuers.

In Arizona, a student remains in critical condition after a shooting at a Phoenix college. Police say an argument got out of control at a South Mountain Community College.

The gunman opened fire hitting a 17-year-old boy and two other students. Police arrested 22-year-old Rodney Smith at his home. Smith's parents and three others were also arrested for interfering with the investigation.

A New Jersey State assemblyman who once sponsored a child pornography bill is now allegedly being investigated for possessing child porn. Officials say two fellow assemblymen discovered the material on Democrat Neil Cohen's office computer. The attorney general seized that computer on Wednesday. Cohen has not been charged.

CHETRY: And a Qantas air flight from London to Australia makes an emergency landing. A hole rips through the fuselage after losing cabin pressure. And this is what the 747 looked like after landing in the Philippines. You can see that nine-foot wide gash in the right side just above the wing.

And we have new video now from inside the plane. It shows those moments just after the oxygen masks fell from the ceiling. Passengers say they heard an explosion and then that flight plunged 20,000 feet in just 30 seconds. You can hear the relief of passengers giving a big round of applause after the landing. Let's listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There was an almighty crack and you could hear something happening. And then the oxygen masks fell down and you started dropping down, ears popping. That sort of stuff.

UNIDENTIFIED FEMALE: My partner was upstairs. I thought maybe he's gone. I don't know. I had no idea.

(END VIDEO CLIP)

CHETRY: Well, an airport official says that no one was hurt on the flight. Some passengers did become sick after landing. Australian authorities say they are beginning an investigation into exactly what caused that hole.

Here's what we're working on for you this morning. Nearly 100 miles of the Mississippi River still closed after an oil spill, and it could take days to reopen and months to clean up. We're going to get a bird's eye view.

ROBERTS: And fighting foreclosure. A woman sues to keep her home, but the banks and builders say she was in over her head and she knew the risks. So who's to blame?

CHETRY: Olympic heartache. With her Iraqi team banned, a sprinter wonders if she'll ever get another shot.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: In this horrible situation, she says, who can say I'll even be alive in 2012?

(END VIDEO CLIP)

CHETRY: You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: 12 minutes after the hour. Our Ali Velshi just touched down in Sarajevo in Bosnia, Herzegovina, just a little while ago.

CHETRY: How about that.

ROBERTS: He's on vacation there.

CHETRY: From ANWR to Croatia.

STEPHANIE ELAM, BUSINESS CORRESPONDENT: Did he let you know that? Did he actually e-mail you and say I just touched down?

ROBERTS: He said he just touched down in Sarajevo.

ELAM: On vacation?

CHETRY: He said he vacationed in Croatia. So --

ROBERTS: Was it Bosnia first then go to Croatia going to the Adriatic coast as well.

(CROSSTALK) ELAM: He needs to learn how to vacate, apparently.

ROBERTS: So Stephanie is here and we should also mention that this is the last time we're going to see Stephanie for a couple of weeks because you're heading off to get married.

ELAM: I am. I'm heading the other way.

CHETRY: This is your last chance to see Stephanie as a single woman. Your last chance.

ELAM: On AMERICAN MORNING, that is true. On AMERICAN MORNING.

ROBERTS: So we know that your stock is rising. And how are ours doing?

ELAM: Well, unfortunately, you know, normally when I come, markets agree with me. They go up. We're happy. Not the case yesterday. The markets were down yesterday because of some more economic jitters.

The Dow as you can see there on the downside by 283 points. Nasdaq losing 45 points, and the S&P 500 off 29 points yesterday. And it really did come down to the battered housing market playing its role. We did get more information about slumping existing home sales. That really freaked the market out.

And then on top of it, employment. We saw some jobless claims that were higher than expected, and that also led to the market's downward trend yesterday.

Also, I want to take a look at oil. We've been talking about oil dropping. Not the case yesterday. Actually on the upside by just over a dollar. $125.49. So we'll be keeping our eyes on that.

Foreclosure filing is up 120 percent in the second quarter. All of this is going to play into things. I can tell you though about gas prices, still moving to the downside. Gas priced down now, eighth drop in a row right above $4 at this point.

So if you remember, our record high was $4.11. That was on July 17th, so we've been moving down about 11 cents since then. So we'll be keeping our eyes on it. Right now, we're poised for a higher opening.

ROBERTS: So if you've been holding off on pulling that trigger on the Hummer, go buy it.

ELAM: Right now, yes. You've been thinking that's the car for you. Now is the time.

ROBERTS: So you have to -- when you return you have to let us know how the merger went.

ELAM: The merger, yes.

ROBERTS: The merger, yes.

ELAM: That's appropriate for us.

CHETRY: Mergers and acquisitions.

ELAM: We both talk about business all the time, so mergers and acquisitions.

ROBERTS: Good luck. Congratulations.

CHETRY: Congratulations.

ELAM: Thank you. Thank you so much.

ROBERTS: Have a wonderful, wonderful time.

ELAM: Thank you. Thank you.

CHETRY: Send us pictures, please.

ELAM: There will be plenty of pictures.

CHETRY: Well, energy bill limbo. With Congress about to go on vacation, we find out why there may be no help for oil and gas prices until summer's over.

ROBERTS: And the bean ball that sparked a base brawl. A pitcher nails a fan and the benches clear.

ROB MARCIANO, AMS METEOROLOGIST: And I'm Rob Marciano in the CNN weather center. Dolly still spinning around in Mexico and yesterday spun up some tornadoes in San Antonio. That, plus your forecast when AMERICAN MORNING comes right back.

(COMMERCIAL BREAK)

CHETRY: 16 minutes past 7:00 here on the East Coast this morning. Rob Marciano tracking the weather for us. Breathing a sigh of relief. We're over with the big hurricane. And a little bit of flooding but the levees held.

MARCIANO: Yes. But, you know, all in all not too shabby. There's still a lot of people without power though this morning and Dolly continues to spin. Nothing on the horizon tropically in the Atlantic or the Caribbean or the Gulf of Mexico that's good.

Here she is into Mexico now, but done some damage yesterday in San Antonio. Some tornadoes spun off and here's some video of it.

Over 50 homes damaged from this. Ten commercial buildings. This just two miles south of downtown San Antonio. It happened late morning, early afternoon. And the path of it or the width of it is about a quarter of a mile wide. So a small one but obviously doing a little hurt there in central Texas.

San Antonio, even though very far from the center certainly sustaining some damage the day after Hurricane Dolly came ashore. Here's what you did for rainfall. We talked about the potential for flooding. Got a foot of rain in San Manuel. Brownsville, Texas, 8.62. McAllen, Texas, 8.5. So certainly it's a decent amount of rain in an area that could use it. But really San Antonio, Central Texas could use it the most.

St. Louis to Nashville, some showers and thunderstorms at this hour. And also thunderstorms now pushing off coast of the Eastern seaboard. New Hampshire yesterday saw some thunderstorms that were rough and tumble. Possible tornado in the eastern part of that state, but it will be much more quiet today.

Here's your strong storms also being quiet across the West Coast heading into the weekend a little bit more quiet than it was this week. And that's good news. Kiran and John, back up to you.

CHETRY: All right, Rob. Thank you.

MARCIANO: Yes.

CHETRY: Well, here's what we're working on this morning for you. House swapping. It's a great way to save on vacations if you're game. All you have to do is let a complete stranger stay at your house.

ROBERTS: And hot dog danger. A new warning about processed meats with the focus on school cafeterias.

(COMMERCIAL BREAK)

ROBERTS: It's 20 minutes now after the hour. Welcome back to the "Most News in the Morning." And time to fast forward now to some of the stories making headlines today.

Barney Franks, House Financial Services Committee, is going to hold a hearing on current mortgage practices and its impact on the foreclosure crisis. That will be at 10:00 a.m. this morning. Also, at 10:00 a.m., what could be some interesting political theater, the House Judiciary Committee will hold hearings on alleged misconduct by the Bush White House. Among those expected to testify, Congressman Dennis Kucinich who has introduced several resolutions calling for President Bush's impeachment.

This hour Senator Barack Obama leaves Berlin headed for Paris. He's going to meeting with French President Nicolas Sarkozy at 11:00 a.m. Eastern. Shortly after that, he is expected to hold a news conference before jetting off to London.

And back here at home, Senator John McCain sitting down with a world leader of his own. He's going to meet with the Dalai Lama at the Aspen Institute in the battleground state of Colorado.

And that's what we're following for you this morning -- Kiran.

CHETRY: Thanks, John.

Well, a father and the man who killed his daughter joining forces to save lives. It's an amazing story of forgiveness, one that started with a tragic drunk driving accident and ended with a stunning request for mercy in court. Here's CNN's Carol Costello.

CAROL COSTELLO, CNN CORRESPONDENT: John and Kiran, I don't know whether I could forgive. Could you forgive a drunk driver that killed your child?

Well, Jeff Vetter not only forgave the drunk driver, but he bonded with him.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): Snapshots of daddy's little girl. Jessica Vetter grew up a tomboy. So much like her father, they dreamed of racing cars and opening up a body shop. But last year on this Maryland roadway, their dreams died with Jessica. Just 20 years old, she was killed by a drunk driver.

JEFF VETTER, DAUGHTER KILLED BY DRUNK DRIVER: It was the phone call you never want to get. That was the worst thing I ever had to deal with in my life.

COSTELLO: Every year more than 17,000 people are killed by drunk drivers. More than 17,000 stories where sorrow turns to rage, as it did for Jeff Vetter.

VETTER: I was full of anger, hate, revenge. I was full of venom ready to strike at any time. I was so tied down into that world of mad and anger that I had to try to do something to get out of it because if I didn't, I wasn't going to survive.

COSTELLO: But that changed when he decided to do what few can imagine. Forgive. He reached out to the Jacoby family and to their son, Michael, the man who killed his daughter. The power to do that came to him in court when he saw not a monster, but a fragile almost 24-year-old man pleading guilty to manslaughter, ready to be punished, and filled with remorse.

VETTER: I saw your normal, every day boy, kid, family such as mine. And I saw that they were going through, you know, the things that I was going through. Total hell.

COSTELLO: And the Jacoby's were going through hell. Placing flowers at the accident site, praying not for their son, but only for forgiveness.

TINA JACOBY, MOTHER OF DRUNK DRIVER: We wanted to reach out to them but we didn't know how, other than to go to the site and to pray for Jessie.

COSTELLO: When forgiveness came, they fully expected Michael to remain in jail for the 18-month sentence. But Vetter convinced the judge to release Michael from jail so both could educate young people about the dangers of drunk driving. Michael is willing, but still too emotionally fragile to appear on camera.

Do you think he'll ever heal?

JACOBY: I don't know. I don't know. He's very remorseful to what happened.

COSTELLO: As for what daddy's little girl would think of her father's astonishing gift of forgiveness?

VETTER: I was hoping you wouldn't ask that. She was a very forgiving person. I can feel her kicking me in the back right now. She would say, go on, dad. Give it to them.

COSTELLO (on camera): She would probably be proud.

VETTER: Very.

(END VIDEOTAPE)

COSTELLO: And in case you're wondering, Michael Jacoby had a clean record. This was his first accident and he's not completely free. He's going to have to serve out the rest of his time on home detention, and he's been sentenced to hundreds of hours of community service. And, of course, that includes traveling throughout the United States with Mr. Vetter to educate people about drunk driving -- John, Kiran.

ROBERTS: Pretty incredible.

CHETRY: It is. And hopefully them going around the country together will help make other people think twice before getting in the car if they've been drinking.

ROBERTS: Yes. Extraordinary example of an attempted healing there. Wow.

25 minutes after the hour. We are waiting for Barack Obama's arrival in Paris this morning. Another meeting with the world leader on tap after 200,000 people welcomed him in Berlin.

CHETRY: Fighting foreclosure.

(BEGIN VIDEO CLIP)

ALLAN CHERNOFF, BUSINESS CORRESPONDENT: He said don't worry about the price.

GESILLE JAMES, HOMEOWNER FIGHTING FORECLOSURE: Don't worry about the price.

(END VIDEO CLIP)

CHETRY: In over their heads, homeowners strike back and find ways to keep their keys.

(BEGIN VIDEO CLIP)

GESILLE JAMES, HOMEOWNER FIGHTING FORECLOSURE: I'm fighting it because I need somewhere to live.

(END VIDEO CLIP) CHETRY: You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: Passing the buck in the foreclosure crisis. Many homeowners are now trying to figure out where it went wrong and how they got in over their heads. Now the brokers, the bankers, the borrowers all pointing fingers at one another.

CNN's senior correspondent Allan Chernoff followed one woman who is now suing to keep her home -- Allan.

ALLAN CHERNOFF, BUSINESS CORRESPONDENT: John, Kiran, the mortgage crisis raises questions of responsibility. Who's to blame? Bankers? Brokers? Borrowers? In some cases, all of the above.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): Gesille James hasn't paid her mortgage in a year. She received a foreclosure notice in November. But she's fighting to stay in the two-family home. Gesille, a librarian, was earning $50,000 a year when she bought this house 2 1/2 years ago. So she took out two mortgages to finance the entire purchase price of $560,000.

CHERNOFF (on camera): Did you think you could afford this house?

GESILLE JAMES, HOMEOWNER FIGHTING FORECLOSURE: No. No.

CHERNOFF: You never thought you could afford it?

JAMES: Well, the price that was quoted, and I kept getting back don't worry about it. They'll work with what you have. There's the financing.

CHERNOFF: Who said that?

JAMES: Anthony.

CHERNOFF: Your broker?

JAMES: He's with financing -- yes.

CHERNOFF: He said don't worry about the price.

JAMES: Don't worry about the price.

CHERNOFF (voice-over): That broker is Anthony Brown who has his own real estate company nearby.

CHERNOFF (on camera): Obviously she couldn't afford it.

ANTHONY BROWN, A PLACE FOR EVERYONE REALTY: Yes, that's true. But with a --

CHERNOFF: Why did you sell -- why did you sell the home? BROWN: No, I don't control her mortgage. You understand? I control the actual sales between her and the developer.

CHERNOFF (voice-over): Brown claims the developer, Home Master Development Group arranged Gesille's financing with Alliance Mortgage, which is no longer in business. Home Master says Mr. Brown arranged the financing. Gesille says the same.

CHERNOFF (on camera): Did he say you could afford it?

JAMES: He did. He did.

CHERNOFF: He did?

JAMES: He did.

CHERNOFF (voice-over): Gesille rented one of the two apartments in the house. But even with the income she still couldn't cover the mortgage payments.

CHERNOFF (on camera): You see how much she earns?

BROWN: Right.

CHERNOFF: How could you sell her a home that was so way out of her price range?

BROWN: Well, that's what she -- from her choice. That was her choice.

CHERNOFF: Well, it's your choice to sell it, no?

BROWN: I don't control -- I don't control what a person chooses to do. If they wanted to get a home, they get a home.

CHERNOFF: Alliance Mortgage quickly sold Gesille's loan to Morgan Stanley who told us they have no comment since the loan has since been sold off to other investors buying mortgage securities. Gesille's lawyer argues she was misled. And therefore has a right to fight foreclosure.

JEFFREY BENJAMIN, ATTORNEY FOR GESILLE JAMES: The goal is to keep the consumer in her home, where she should belong. But at a reasonable monthly burden.

CHERNOFF: Gesille admits she bears much of the responsibility. But says she can't imagine what she'll do if she has to leave her home.

GESILLE JAMES, FIGHTING FORECLOSURE: I'm fighting it. Because I need somewhere to live. I have to live somewhere. I can't live in the car.

CHERNOFF on-camera): Attorney Jeff Benjamin says he's hopeful of renegotiating Gesille's mortgage on this home, especially now that banks are being more flexible since so many of their loans have gone bad. Kiran, John. JOHN ROBERTS, CNN, ANCHOR: Allan Chernoff this morning. Thanks.

KIRAN CHETRY, CNN, ANCHOR: Well, the housing bill could vote - the Senate could vote on this housing bill as early as today and it could rescue hundreds of thousands of homeowners who are also scrapping, you know, plans and trying to figure out whether or not they'll be able to keep their homes.

ROBERTS: 31 minutes after the hour. Here are this morning's top stories. Breaking this morning. Barack Obama on his way to Paris right now to meet with French President Nicolas Sarkozy today. Obama calls for renewed European support for the war in Afghanistan. Yesterday in Berlin in front of a crowd estimated by police at 200 thousand.

Terror in the sky. A plane plunging 20,000 feet in 30 seconds with a gaping hole in the fuselage. The Qantas jet was going from Hong Kong to Melbourne this morning when it lost cabin pressure. New video coming from inside the plane as oxygen masks came down and people braced for a crash landing. The airline said it had to make an emergency landing in Manila after a midair rupture. Amazingly though, no one was injured.

A brand-new bird's eye view of a 400,000 gallon oil spill near downtown New Orleans. Nearly 100 miles of the Mississippi river still closed could take days to reopen and months to clean up. It's all the result of the worst collision there in nearly a decade between a 61- foot barge and a tanker.

Iraqi athletes will not be able to compete at the Olympics in Beijing. The International Olympic Committee banned them because of interference by the Iraqi government which disbanded the country's officially recognized Olympic committee. CNN's Morgan Neill joins us now live from Baghdad this morning. Exactly what's going on there, Morgan.

MORGAN NEILL, CNN CORRESPONDENT: Well, John, as you can imagine this decision has just devastated these athletes who have worked so hard in the midst of a war zone to get to Beijing just weeks from now. And there is a lot of finger pointing going on about just who's to blame for this decision. But in the end, whoever is to blame, it's these athletes and this country that it so looked forward to seeing them compete who will suffer the most.

(BEGIN VIDEOTAPE)

NEILL (voice-over): The last time we visited Iraqi sprinter Dana Hussein, it seemed nothing could stop her. But today she's devastated. She's just learned the International Olympic Committee has banned Iraqi athletes from competing in Beijing.

DANA HUSSEIN, SPRINTER (through translator): After all the effort I've made, she says, they came and said you can't participate in the Olympics.

NEILL: The IOC suspended Iraq in June for political interference. After the government disbanded the Iraqi Olympic committee, saying the committee held meetings without quorums and had officials serving in one-year posts for more than five years.

One member accused the government of acting out of jealousy over the non-governmental committee's achievements. On Thursday, the IOC's suspension was confirmed. A letter to Iraqi officials read, "we deeply regret this out come which severely harms the Iraqi Olympic and sports movement and the Iraqi athletes. But which is unfortunately imposed by the circumstances."

But why ban Iraq now? When teams led by the infamous Uday Hussein, accused for torturing athletes who didn't perform well were allowed to compete. The IOC didn't suspend Uday's committee until after the U.S.-led invasion in 2003.

In Baghdad, reaction was a mixture of sadness and anger. I blame the Iraqi government said this young teacher. They should not interfere in sports. This government worker still held out hope. We asked them to review their decision and to allow the athletes to participate in Beijing, he said.

Dana's coach tries to comfort her, saying she'll compete in 2012.

DANA HUSSEIN (through translator): In this horrible situation, she says, who can say I'll even be alive in 2012.

(END VIDEOTAPE)

NEILL: As you can see, this decision's obviously just heart wrenching for the athletes. But it's also a missed opportunity for this country where sports has proven to be one of the few areas that really unites people under a common banner. Now, the IOC has told CNN that there is still a slim chance that some athletes can compete. But that would only happen if the Iraqi government were to reinstate that disbanded Olympic Committee. And that's something the Iraqi government says simply isn't going to happen, John.

ROBERTS: So the government is standing firm that there's no chance that they'll change their minds. So the IOC, really it's hands will be tied here?

NEILL: That's essentially the situation we're in. We've talked to today a member of that disbanded committee who says essentially this was a decision taken for both sectarian reasons and just because the government wanted to take power of this Olympic movement in order to gain some of the credit from what is essentially such a popular area. The government in turn blames that disbanded committee not only for those procedural violations but also for corruption, John. So, that's right. That's where we stand.

ROBERTS: And the athletes get caught in the middle. Morgan Neill for us this morning from Baghdad. Morgan, thanks so much for that.

CHETRY: Well, a fan hospitalized, a player arrested and 15 others ejected in a minor league bench clearing brawl. It broke out between the midwest league's Dayton Dragon's and Peoria Chiefs. There you see the pitcher, Peoria's pitcher Julio Castillo, firing a ball at the opposing dugout. Well, he missed but hit a fan in the stands. Castillo's now facing an assault charge. Umpires also tossed both managers. The league president though has to step in and reinstate the players so that the pitchers didn't have to play in the out field. But again, a big brawl and one of the players, that pitcher who hurled that ball, now facing assault charges.

ROBERTS: Now, amazing, the fan had to be taken to the hospital as well.

An American favorite may be raising your cancer risk big time. A new warning about hotdogs and other processed meats. The study that comes down hard on school cafeterias.

(BEGIN VIDEOTAPE)

CHETRY (voice-over): House swapping.

UNIDENTIFIED MALE: It's an adventure.

CHETRY: It's also a way to save money this summer. When you travel on the cheap, sometimes you get what you pay for.

UNIDENTIFIED FEMALE: The worse one was the house in Bavaria which was absolutely filthy.

CHETRY: You're watching the most news in the morning.

(COMMERCIAL BREAK)

CHETRY: Well, strangers in your house sleeping in your bed. Would you call the police or would you stay at their house for a unique vacation? Well, it's called house swapping, and it's the latest way to cut down on vacation costs. Our Zain Verjee joins me now from Washington. I know you did the commuter thing where you commuted with a total stranger. Would you do this house swapping, though?

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, not quite. But what we didn't realize was that everyone's just trying to save money on summer vacations. Some aren't even going on trips because, Kiran, it's just too expensive. But if you're looking for a way to hit the road without breaking the bank, how about a house swap?

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VERJEE (voice-over): For 20 years, Lauren Kahn can has been welcoming total strangers to her home. She's about to meet Ken and Shirley Bullock for the first time and hand over her house keys.

UNIDENTIFIED MALE: Hi, how are you?

VERJEE: The Bullocks are trading their home in Australia for Lauren's in McLean, Virginia, for a month.

LAUREN KAHN, HOUSE SWAPPER: It's not everybody's idea of a conventional vacation. VERJEE: If you want more than a one night stay for free, all you have to do is go to some of these home swapping websites. And your entire world is open.

It's already popular in Europe. Now it's picking up steam in the U.S. and elsewhere. As eager swappers showcase their homes.

Oh, Kenya. Nice.

UNIDENTIFIED MALE: It's an adventure.

VERJEE: This will be Lauren's 35th house swap.

KAHN: What you do get is a lot of cross cultural experiences.

VERJEE: They also swap cars.

Lauren and ourselves were exchanging cell phones. So she'll be using ours there and we're using hers here.

VERJEE: Travel editor Keith Bellows champions house swapping but warns do your home work.

KEITH BELLOWS, EDITOR, NATIONAL GEOGRAPHIC TRAVELER: You really need to think through, am I willing to leave my home in someone else's hands. Somebody I've never met before.

SHIRLEY BULLOCK, HOUSE SWAPPER: It's the question that people keep asking. You're going to let people in your home, they say? But you'll be in their house.

VERJEE: Even with careful research, you could be in for a surprise.

KAHN: The worst one was the house in Bavaria which was absolutely filthy. The car didn't work.

VERJEE: The rules? A clean home and advice for guests.

KAHN: How to drive the car. I have a new car. They get a car with less than 1,000 miles. Where to go to get food. Where to go for other shopping.

VERJEE: On Kawana Island on Australia, the Bullocks leave Lauren treats.

KAHN: Oh, some chocolates.

VERJEE: And a welcome first meal. A couple vacationing in the U.S. spends on average $250 a day in meals and hotels. The Bullocks is only spending only $75 per day. Is it the money that you save?

SHIRLEY BULLOCK: I'd still say money has to come last.

KAHN: It's the people. You also do it, of course, to save money. But I would never have had the quality of vacations that I've had and the experiences I've had without all my exchanges. I wouldn't give them up for the world because what I like more than anything else is to travel.

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VERJEE: House swapping also lets you live like a local. You're not at a hotel, Kiran. You meet the neighbors, you go to the local stores. But you still need to make sure you learn as much as possible about the people that you're swapping with and the places that you're visiting just to make sure it's safe. Would you do this, Kiran?

CHETRY: I know. When I first heard you're doing the story I thought no way. After seeing the two different families who did it and it seems to work for them, maybe I'd give it a try.

VERJEE: Yes.

CHETRY: Pretty neat. Zain, thank you.

ROBERTS: Just remember the house in Bavaria, though.

CHETRY: That's right. It was filthy and the car didn't work.

ROBERTS: Exactly.

Here's what else we're working on for you this morning. They say that time is money. And Congress is about to let you go the rest of the summer without an answer to the energy crisis. Our Kate Bolduan finds out what the holdup is.

Lance Armstrong won the Tour De France seven times. But now he's trying to win a much tougher battle. Armstrong is going to join us live to talk about his fight to end cancer.

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ROBERTS: It's coming up now on 15 minutes to the top of the hour. We could go the rest of the summer without help from Washington on the oil and gas crisis. Congress is about to take a vacation. Right now both sides are using up most of their energy taking shots at each other. CNN's Kate Bolduan has got the story for us now from Capitol Hill.

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KATE BOLDUAN, CNN CORRESPONDENT: Even before the votes were counted on the latest energy proposal, the partisan standoff was clear.

REP. NANCY PELOSI (D), HOUSE SPEAKER: We're saying, Mr. President, free our oil. It's our oil. It belongs to the American taxpayers.

REP. JOHN BOEHNER (R), MINORITY LEADER: This bill's a joke. Come on. This is not an energy bill. This is not going to produce any more American made energy.

BOLDUAN: That bill, a democratic plan to release oil from the nation's strategic petroleum reserve. It failed. One more example of the deadlock over sky high gas prices and one step closer to Congress going home for the summer without passing anything significant on energy. The main battle comes down to whether to allow new offshore drilling. Republicans say yes. Democratic leaders say no. The dispute has deteriorated into competing press conferences, dueling poster boards and partisan jabs.

SEN. PETE DOMENICI (R), NEW MEXICO: Does it seem to you like it does to me, that Harry Reid is either scared, chicken, to have a vote or he's decided that he's going to dictate to the United States Senate?

PELOSI: This call for drilling in areas that are protected is a hoax. It's an absolute hoax on the part of the republicans in this Bush administration.

BOLDUAN: But both sides see little political incentives to strike a deal. Democrats and republicans point to separate polls as proof they have the winning argument. Republicans cite polls showing the majority of Americans are in favor of more drilling. Democrats cite polls indicating Americans blame the Bush administration and oil companies, not Congress, for high fuel prices.

STU ROTHENBERG, THE ROTHENBERG POLITICAL REPORT: Republicans believe that energy is their winning issue. They've been searching for an issue for weeks. Democrats, on the other hand, don't see it as a fundamental weakness. They don't think it's a big loser for them. They think the election is about other things.

BOLDUAN (on-camera): Congress is running out of time before the long recess. But democrats and republicans say they're happy to take their arguments all the way to the fall election. Kate Bolduan, CNN, Washington.

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CHETRY: And here's what we're working on for you this morning. Lance Armstrong retired from cycling, the focus on trying to end cancer. He's got an assist from presidential candidate John McCain, himself a cancer survivor. And Armstrong joins us live in just a couple of minutes.

Also, Barack Obama talked to CNN's own Candy Crowley just minutes before leaving for Paris. We're going to hear what he has to say. You're watching the most news in the morning.

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CHETRY: School cafeterias across the country are being called out for the processed meat they serve to students. A study says that favorites like hot dogs and other processed foods can put children on a path that could lead to colon cancer. Now, a vegan group is trying to drive home that message with the powerful new ad starring kids on youtube.

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UNIDENTIFIED MALE: I thought I would live forever. I was dumfounded when the doctor told me I have late-stage colon cancer. UNIDENTIFIED MALE: Deciding between surgery and radiation wasn't easy. Who knows what sort of side effects they have.

UNIDENTIFIED FEMALE: It has been tough on my husband, my kids and me. Cancer affects the whole family.

UNIDENTIFIED FEMALE: Cancer risks start early. Even small amounts of processed meats can lead to adult cancers.

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CHETRY: Medical correspondent Elizabeth Cohen joins us now to sort out a little bit more about the ad which is scary when you take a look at it. And is there a research that backs that up that even small amounts of processed meats could lead to colon cancer?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT; There is some research, absolutely, Kiran, that eating small amounts of meat can indeed increase your risk of cancer. It's you know, that ad makes you think if you ate processed meats you're definitely going to get cancer. This ad was put out by an animal rights group that wants us all to be vegan. So, having said that. Let's talk about what the actual research says.

There was a report that came out recently from the American Institute for Cancer Research and what they found was if you eat one hot dog a day, you are increasing your cancer risk by 21 percent. Now, using hot dogs here as an example but it's really about an ounce and a half of processed meat a day of any kind is what can lead to cancer. So, here we have some examples of what we mean by processed meats. We are talking bacon, sausage, salami, baloney, hot dogs, any of that. Ounce a day could increase your risk of cancer according to this study.

The problem experts believe it is in nitrates in those processed meats. That's apparently what's causing the cancer link. Kiran.

CHETRY: All right. So I have a couple of questions but first should we stay away from processed meats in general?

COHEN: OK. I'm going to tell you what the American Cancer Society said. The American Cancer Society says reduce your consumption of processed meats as much as possible. The American Institute of Cancer Research says save processed meats for special occasions. A slice of ham at Christmas, a hot dog at an occasional baseball game.

CHETRY: Very interesting. A lot of grocery stores are now offering nitrate-free hot dogs. I know because I buy them for my daughter. Are those any better?

COHEN: Yes, there is a possibility that those are better. Again, they are not sure what it is about processed meats but a lot of experts think it is the nitrates. So, they would say yes, if you can get the nitrates out and you have indeed improved, so to speak, that meat.

CHETRY: All right. A bummer for a lot of us, when we look at our normal breakfast regimen. Thanks, Elizabeth.

COHEN: Thanks.

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ROBERTS (voice-over): Obama, world tour.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: We have too much at stake to turn back now.

ROBERTS: Visiting France and the U.K. today after calling for a world without walls in Berlin.

OBAMA: America can't do this alone.

ROBERTS: Plus, live strong.

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Lance Armstrong is making all the difference in the world.

ROBERTS: The seven-time Tour de France champion brings his quest to cancer research to the most news in the morning.

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ROBERTS: Good morning, it's now to the top of the hour. Lance Armstrong, we all know his story, seven-time Tour de France winner and a cancer survivor. He retired from cycling but is going full speed ahead on his mission to fight cancer. Last night, Armstrong hosted his second Live Strong summit. Presidential candidate John McCain was there.

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SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: When I was in a battle with melanoma and I know, and I know, somewhat at least a small degree how tough that battle can be. And, yes, I have become a fanatic. Yes, I admit it. When I see a woman with a child and a son, I go over and say get sunscreen on that child, please.

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ROBERTS: Lance Armstrong joins me now live from Columbus, Ohio, the site of the summit. Lance, it is great to see you. Let me start by asking you this question. You see when the presidential candidates are saying about health care. If you were running for president, what would you be doing about cancer?

LANCE ARMSTRONG, CANCER SURVIVOR: Oh, boy. Obviously we need to do a lot more. I mean, I think we need to address all aspects of what we call the cancer continuum so we must as a society focus on prevention as Senator McCain spoke about, and obviously sunscreen is hugely important for all of us. But also tobacco control and making sure people either never smoke or stop smoking.

On through, all the way through medical research, scientific research, increasing funding at all the scientific institutes that we have here in the country. A lot of aspects there but I think primarily the administration needs to make it a priority and needs to fund it as such.

ROBERTS: You told the local newspaper in the last couple of days that you would work with the FDA to regulate tobacco and try to make America smoke-free. Is that possible?

ARMSTRONG: Well, I think both candidates - well, you know, even in the last year, almost all of the candidates will tell you that to make America smoke-free is probably best left to the states and to the cities or municipalities. You got to keep in mind right now we are about 50 percent smoke-free. I think that, you know, every month another state is added. So, we are getting there slowly, but surely. And I think the president is always going to rely on the states and cities do that.

ROBERTS: You also said in that interview that you would try on to guarantee access health care for every American and double the budget of the National Cancer Institute. Which candidate has the health care plan out there that's closest to what you would like to see in this country?

ARMSTRONG: You know, to be honest, I think both candidates are still laying out that plan. I mean, obviously if you went to both websites, you would see some sketch of that. It is interesting but within this current election cycle and this current debate so many things are vying for attention. It could be the war, it could be terror, it could be the price of oil. It could be the economy. It could be education. And health care is one of the issues they will debate. I don't think we have seen clear lines drawn and true plans laid out.

ROBERTS: You said last night at your town hall meeting, you pointed out at least that the Bush administration has cut funding for the National Cancer Institute three years in a row. John McCain at that town hall pledged that he would try to increase funding. I asked him about those cuts in an interview last year. And why they happened. Here is what he told me.

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SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I don't know the answer to that. I'm sure that there may be some rationale for it. I was not aware that we had cut it. And there's many areas where we have increased cancer research. I would have to get back to you. I was not aware that we made cuts in the funding.

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ROBERTS: Despite his own battles with cancer, he articulated last night, you didn't seem to know a lot about the funding issue in that interview. Are you confident that he does now?

ARMSTRONG: Well, that's what I asked him last night. I mean, the whole purpose of having a presidential forum is that you get to ask one of the candidates harder questions. And I said listen, a lot of your skeptics will say that voting for you is the equivalent of voting for George Bush again. And the record will show that the current administration shrunk the budget for two or three years in a row now. Will we expect the same thing? And he said no. So, you know, we have to be optimistic with that.