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Tropical Storm Fay Eyes Florida, Storm Gaining Strength; Pakistani President Pervez Musharraf Resigns; Michael Phelps Wins His Eighth Gold Medal; Obama in His Own Words on Same-Sex Marriage; Dogs Sniff out Cell Phones Smuggled into Prison; Candy Prices Going Up

Aired August 18, 2008 - 06:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Breaking news. Pakistan's president, a key ally in the hunt for bin Laden says he's stepping down.
Fay eyes Florida. The coast preparing for the worst.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don't want to take a chance for the children.

(END VIDEO CLIP)

CHETRY: The storm set to strike today.

And Grand Canyon rescue. Hundreds in a giant hole filling with flood waters.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Just like you would think in a movie.

(END VIDEO CLIP)

CHETRY: The search continues for campers and tourist on this AMERICAN MORNING.

Welcome. Good to see you this morning. So from the east to the west there is weather.

ROB MARCIANO, CNN CO-HOST: Yes.

CHETRY: Which is why -- this always happens when Rob is going in for John Roberts.

MARCIANO: It does seem to happen.

CHETRY: We got Fay.

MARCIANO: Yes.

CHETRY: And we also have a situation that caused a lot of problems out in the Grand Canyon.

MARCIANO: Yes. Possibly we have some international news. John Roberts is taking a little bit of a long weekend. He'll be back tomorrow, but I'm happy to be here.

CHETRY: Well, we're glad to have you and we start with breaking news.

President of Pakistan, Pervez Musharraf saying he will resign. Musharraf, a long-time U.S. ally in the war on terror said that he's stepping down to avoid an impeachment fight that would harm Pakistan's interest. The country's ruling coalition was taking steps to remove Musharraf. We'll have more on what it means to the U.S. and concerns about Pakistan's nuclear status as well as the hunt for Osama bin Laden still ahead.

Right now, Cuba getting drenched as Tropical Storm Fay marches towards Florida. There's a look right now. Forecasters say Fay could strengthen into a hurricane by the time it makes landfall somewhere over the Keys later today. At least five people were killed in the Caribbean and dozens of communities in Cuba have been evacuated.

Speaking of evacuations, they could resume today at the Grand Canyon after a dam burst. It happened in northern Arizona yesterday after days of heavy rain. The wall of water took out hiking trails, footbridges. Helicopters lifting more than a 170 people living along the Colorado River to safety before calling off air evacuations due to the darkness. A flash flood warning is in effect.

MARCIANO: Back to our breaking news weather wise. Emergency workers are on standby as Tropical Storm Fay sets its sight on Florida. It's the sixth storm of this hurricane storm already blamed for five deaths in the Caribbean. Warnings and watches are up for the Florida Keys and the west coast of Florida.

Right now, winds are about 50 miles an hour so a decent tropical storm. Those winds extend out to about 100 miles and neither direction. It's about 150 miles to the south southeast of Key West. But right now it is pummeling Cuba in a big way with damaging winds and some flooding rains especially on the coastline, and CNN's Morgan Neill is live for us in Havana, Cuba.

Good morning, Morgan, what's the situation there?

MORGAN NEILL, CNN CORRESPONDENT: Good morning, Rob. Well, thousands of people have been evacuated in the path of this storm in various parts of Cuba. Here in Havana, the storm appears to have moved to the east of us so it doesn't look as though we'll be in the path of the storm itself. But what authorities are saying is we can't really see it. But I'm just along the seawall here and there's a risk that because of the pattern of the storm, the ocean itself could flood this low-lying area just along the Malecon, here in Havana.

Of course, Cuba is just the latest stop for this storm. It's been felt throughout the region.

(BEGIN VIDEOTAPE)

NEILL (voice-over): Tropical Storm Fay picked up momentum Sunday hitting Cuba's southern coast with gusty winds and heavy rains that pushed and swirled closer to the island. Hurricane watches were posted along much of Cuba's central and western coast, including Havana as the storm picked up strength.

Already, Fay has left at least five people dead in its wake after battering Haiti and the Dominican Republic. Nearly 12,000 people were evacuated in the Dominican Republic and power was cut to some 15,000 homes according to local reports. Target now, the Florida Strait, predictions that could reach hurricane strength as it pushes back over water.

BEN NELSON, FLORIDA STATE METEOROLOGIST: The main threats with Fay as the National Hurricane Center, and the state emergency response team diagnosis right now are tornadoes and flooding.

NEILL: Forecasters said the storm could hit the Florida Keys Monday night. In the Keys, schools are closed. Tourists are being urged to leave and shelters are being opened. The governor has declared a state of emergency and 9,000 Florida National Guard troops are ready.

GOV. CHARLIE CRIST (R), FLORIDA: Florida is prepared and we are ready and we'll be vigilant.

NEILL: Residents rushed to prepare for the incoming storm buying plywood, batteries, generators and candles. In some areas, water sold out within hours of stores opening. And out in the Gulf of Mexico, U.S. oil companies like Shell are already pulling workers off offshore platforms preparing for Fay's arrival. Back here in Cuba, the island must now start to deal with the damage.

(END VIDEOTAPE)

NEILL: And so far, there have been relatively few reports of that kind of damage. But, of course, Rob, Fay isn't done with Cuba just yet.

MARCIANO: No, she's not. Morgan Neill live for us in Havana. Thank you, Morgan.

And, of course, the concerns now to Florida here in the states where Fay could develop into a hurricane before making landfall there.

CNN's Reynolds Wolf is tracking the storm live from the hurricane center down at Atlanta, and Reynolds's latest update just came in from the National Hurricane Center.

What do you know?

REYNOLDS WOLF, AMS METEOROLOGIST: Well, the latest we know, Rob, is that the storm, as you mentioned, moving over parts of Cuba right now. Not a whole lot of activity in downtown Havana. But take a look at the last couple of frames just boom. You see some explosive convection popping up that far from Nassau right across the strait of Florida.

Now if you look at the state of Florida it sticks kind of like a knife blade. And as the storm exists its way to the north parts of Florida especially the keys are going to be experiencing some deteriorating conditions.

Now as Rob mentioned moments ago, we do have some new information in from the National Hurricane Center. Winds currently at 50, gusting to 65. Now the center of the storm still 151 miles from Key West Florida. It still has a ways to go before it gets to the U.S. mainland and the latest path we have from the National Hurricane Center brings the center of the storm. Not the entire storm but just the center of circulation right past Havana.

And as we get to 2:00 a.m. on Tuesday, late last night early morning on Tuesday, winds of 65 miles per hour right near Key West to Dry Tortugas will be right about here at Fort Jefferson. And then the storm would be making its way just to the north, possibly just coming onshore near Tampa by 2:00 a.m. with winds of 70 miles per hour and then eventually moving in to north Florida, south Georgia and the Carolinas.

But, Rob, as you know very well, these storms can be really fickle. They do tend to deviate from path. Their wobbling system spinning some storms on them, rotating plainly (ph) very hard to judge. But right now, it is moving to the north. Looks like Florida is going to be hit next. Let's send it back to you.

MARCIANO: All right. Reynolds Wolf for us live from the hurricane headquarters in Atlanta. Thanks, Reynolds.

WOLF: You bet, man.

CHETRY: Also, breaking this morning, the political shakeup in Pakistan. Embattled President Pervez Musharraf resigns and it comes after weeks of pressure from the country's new ruling coalition calling on Musharraf to step down or face impeachment. So what does it mean for the U.S.?

Well, joining us now on the phone CNN State Department correspondent Zain Verjee. Hi, Zain.

ON THE PHONE: ZAIN VERJEE, STATE DEPARTMENT CORRESPONDENT: Hi there, Kiran. Good morning.

You know, the U.S. has really been bracing for this moment, the day Pervez Musharraf is forced to leave office. So this really isn't a surprise for the U.S. The truth is is that Washington has really moved on from just Pervez Musharraf and it's recognized that there are other players in Pakistan. So the State Department has had to adjust its policy accordingly.

Secretary of State Condoleezza Rice says that Pervez Musharraf has been a really good ally to the U.S. She was also asked whether the U.S. would give Musharraf asylum. She said that was not on the table. But the real key here for the U.S., Kiran, is that they want a refocus on the war on terror. They feel that all this political turmoil and political chaos has taken the Pakistani eye off the ball on that border region between Pakistan and Afghanistan -- Kiran. CHETRY: As well, Pakistan a nuclear nation, are the weapons safe and is the U.S. concerned about that?

VERJEE: Well, the U.S. believes that for now the nuclear weapons are safe. But, yes, there is a lot of concern about that. The big fear is that Pakistan gets destabilized and the nuclear weapons fall into the hands of terrorists.

Now, Pakistani leaders have always maintained that the weapons are safe. But the truth is we don't know much about the nuclear weapons. Most people think that they are disassembled and then not ready to use. They say that different people have different parts of the code so it's not easy to activate it.

Pakistani leaders have said those nuclear weapons are securely guarded by military forces. They've recently upgraded security and that they are safe but there is a very real concern -- Kiran.

CHETRY: All right. Zain Verjee, our State Department correspondent on the phone with us this morning, thank you.

MARCIANO: Well, some would say he rules the pool. Michael Phelps gets the gold medal record and now he stands to make millions of dollars in endorsements. We're live in Beijing.

And Barack Obama and John McCain on abortion and taxes. Hear how both candidates answer the same tough questions in their own words. You're watching the "Most News in the Morning." We'll be right back.

(COMMERCIAL BREAK)

MARCIANO: American swimmer Michael Phelps is now an Olympic class all by himself. Phelps won his record eighth gold medal at the Beijing Games. That's 14 for his career, also a record. Phelps has won more gold than some countries competing in the Beijing Olympics and as for the current medal count, here we go.

The U.S. leads with 65. China has 61. But China has the most golds with 35 compared to 19 for the U.S. Australia is third in the medal standing with 33 medals, 11 of which are gold.

CNN's Larry Smith is live in Beijing this morning with more on Michael Phelps historic achievement and a look at some -- how the other Americans are doing in their quest for gold. Quite an amazing weekend, wasn't it, Larry?

LARRY SMITH, CNN SPORTS CORRESPONDENT: It really was, Rob. Imagine where the U.S. would be though without Michael Phelps. Eight of the Americans' 19 gold medals coming from the 23-year-old who over the weekend made sure that this will always be known as his Olympics.

(BEGIN VIDEOTAPE)

SMITH (voice-over): Just like the week preceding it, the weekend in Beijing belonged to Michael Phelps. The swimming sensation staked his claim as one of the greatest Olympic athletes ever by taking his record eighth gold medal of the games and 14th overall.

MICHAEL PHELPS, U.S. OLYMPIC TEAM: I said all along, you know, I want to be the first Michael Phelps, not a second Mark Spitz.

SMITH: Phelps did it swimming the third leg of the 4 by 100 medley relay for the Americans, giving the team a lead it never relinquished.

As for the women in the pool, Dara Torres captured a storybook Olympic comeback with two silver medals on Sunday. The 41-year-old lost a 50 meter freestyle by just one one-hundredth of a second.

DARA TORRES, U.S. OLYMPIC TEAM: You don't have to put an age limit on your dreams. And I'm hoping that if you go out there that might -- maybe thought they were too old to do certain things realize that they're not too old to do certain things.

SMITH: On the track it was a disappointing weekend in the men's and women's 100 meters for the much hyped U.S. team. Jamaican Shelley Ann Frazer blew away the field Sunday night making it a clean sweep for the country. Jamaican sprinter Usain Bolt easily took gold with a world record dash in the men's 100 on Saturday.

Over to gymnastics where American Shawn Johnson and Nastia Liukin captured silver and bronze medals in the women's floor exercises. But U.S. gymnast Alicia Sacramone finished a disappointing fourth in the vault competition.

And two familiar American faces are leaving Beijing with some gold. Venus and Serena Williams took the women's doubles title over this weekend.

SMITH: Well, early this morning I sat down for a one-on-one interview with Michael Phelps and he had some interesting things to say. We'll bring that for you next hour here on AMERICAN MORNING. We'll see you then. Let's go back to you.

MARCIANO: All right. Larry Smith with the one-on-one Michael Phelps. Looking forward to that. Thank you, Larry.

Also, Olympic superstar Michael Phelps will be on CNN.com/live tomorrow. And you can be a part of that interview. Go to iReport.com and submit your own video questions for him. He'll answer some of them at 8:30 Eastern only on CNN.com/live.

CHETRY: Rob, thanks.

Well, up close and personal with Barack Obama. The presumptive Democrat nominee talking about where he stands on abortion, same-sex marriage and many other issues. We're going to hear what Obama said at a church for him in his own words.

And sniffing out cell phones. Dogs trained to find high-tech contrabands. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK) CHETRY: Welcome to the "Most Politics in the Morning." Barack Obama campaigns in New Mexico today. But over the weekend he shared the stage with Senator John McCain. They were at a presidential forum on faith in California.

The candidates answered questions from Pastor Rick Warren. In an effort to help you make an informed decision in this election, we've been playing longer versions of what the candidates are saying to the voters about the issues.

So right now, here is Barack Obama talking about same-sex marriage and abortion.

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I am pro-choice. I believe in Roe v. Wade, and I come to that conclusion not because I'm pro-abortion, but because, ultimately, I don't think women make these decisions casually. I think they -- they wrestle with these things in profound ways, in consultation with their pastors or their spouses or their doctors or their family members.

And so, for me, the goal right now should be -- and this is where I think we can find common ground. And by the way, I've now inserted this into the Democratic Party platform, is how do we reduce the number of abortions? Because the fact is that although we've had a president who is opposed to abortion over the last eight years, abortions have not gone down.

PASTOR RICK WARREN, SADDLEBACK CHURCH: Define marriage.

OBAMA: believe that marriage is the union between a man and a woman. Now, for me as a Christian -- for me -- for me as a Christian, it is also a sacred union. You know, God's in the mix. But --

WARREN: Would you support a Constitutional Amendment with that definition?

OBAMA: No, I would not.

WARREN: Why not?

OBAMA: Because historically -- because historically, we have not defined marriage in our constitution. It's been a matter of state law. That has been our tradition.

I mean, let's break it down. The reason that people think there needs to be a constitutional amendment, some people believe, is because of the concern that -- about same-sex marriage. I am not somebody who promotes same-sex marriage, but I do believe in civil unions. I do believe that we should not -- that for gay partners to want to visit each other in the hospital for the state to say, you know what, that's all right, I don't think in any way inhibits my core beliefs about what marriage are. I think my faith is strong enough and my marriage is strong enough that I can afford those civil rights to others, even if I have a different perspective or different view. (END VIDEOTAPE)

CHETRY: Well, coming up a little bit later, we're going to hear from John McCain about his views on same-sex marriage and abortion as well.

Also, a programming reminder. Live coverage of the Democratic National Convention in Denver begins right here a week from today, from the "Most News in the Morning."

MARCIANO: A dramatic search and rescue right now at the Grand Canyon. Hundreds trapped when a dam burst. Evacuations could resume this morning. The latest as the danger situation unfolds.

Prison cells.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think we owe it to the victims to not allow inmates to continue to run their enterprise from behind our bars.

(END VIDEO CLIP)

MARCIANO: How dogs are helping cut down on a growing problem in prison.

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

(COMMERCIAL BREAK)

MARCIANO: Welcome back to the Most News in the Morning, today.

Russian troops will begin pulling out of Georgia, 11 days after invading that country. The promise from Russian President Dmitry Medvedev, after a cease-fire agreement on Saturday. So far, no word on whether the Russian deployment will be complete. And Medvedev is suggesting he might keep Russian artillery in the two break-away regions of South Ossetia and Abkhazia.

And President Bush has strongly criticized Russian's actions in Georgia. CNN has learned that the Pentagon has been studying Russian's latest invasions.

Here's Pentagon's correspondent Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Rob, Kiran, the U.S. Military's going to be living with the consequences of the Russian/Georgian conflict for some time to come.

(voice-over): CNN has learned the U.S. Military already is studying Russia's campaign in Georgia for clues about the strength and tactics of the Russian military and how to protect former East Block nations. ROBERT GATES, DEFENSE SECRETARY: One of the consequences of what Russia has done, frankly, is to make all of their neighbors apprehensive.

STARR: No surprise experts say.

BRIG. GEN. DAVID GRANCE, U.S. AMY (RET), CNN MILITARY ANALYST: What you see right now is a posturing. A positional advantage of Russian forces. Very similar to what they've done in the past.

STARR: The U.S. is beginning to respond. For instance, in next door Poland, the U.S. is sending a battery of patriot missiles -- 100 U.S. troops will operate the. The U.S. Navy may send ships into the Black Sea to support Ukraine. And look for U.S. Military assistance to government across Eastern Europe.

GATES: They've seen some familiar behavior here and they don't like it.

STARR: U.S. commanders say they were struck by Russia's speed and its ability to conduct highly coordinated air land and sea attacks. And by their overwhelming force, moving in with more than 10,000 troops, 150 tanks and more than 300 armored vehicles.

(on camera): One of the major problems for the U.S. Military -- once again, lack of intelligence. It took days to move spy satellites overhead so the U.S. could get its own independent assessment of the fighting on the ground -- Rob, Kiran.

(END VIDEOTAPE)

CHETRY: Barbara Starr, thank you.

Well, the Florida Keys in the bullseye as Tropical Storm Fay turns towards the north. Right now, that storm lashing Cuba with winds, rain and waves. We have breaking details on the storms track and strength still ahead.

And turning gold into millions. Michael Phelps making history. Stands to make big bucks, as well. We're going live to Beijing. You're watching the Most News in the Morning.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

MICHAEL PHELPS, OLYMPIC SWIMMER: I've always had the kind of mind frame where anything is possible. You know, no matter what it is, if you put your mind to it, you can do it. And I've been able to do that through my career. So coming into here, I thought anything was possible.

(END VIDEO CLIP)

CHETRY: And that was Michael Phelps talking to CNN this morning. Phelps, you know, just an amazing, incredible story. He won his eighth gold medal of the Beijing Olympics this weekend, shattering all the records. Now, he has 14 in his career -- that's more than anyone in Olympic history. Phelps' remarkable achievement of course, has Beijing buzzing.

Joining me now from Beijing, to talk more about the Phelps' phenomenon, B.E.T. talk show host and sports attorney Ryan Smith, who's covering the games as well.

Thanks for being with us.

You know, I don't know, we started to take it for granted Ryan --

RYAN SMITH, BET TALK SHOW HOST: Thank you.

CHETRY: -- that he was just going to continue to win these golds. I mean, he did it. The bar was set high and he surpassed it and then some.

How significant is it to win eight golds?

SMITH: Oh, it's amazing. Well, first of all, it's unheard of. This is the first time in history it's been done.

But you know, it just seems that every time he gets in the water, he wins gold. Not only that, he breaks a world record. Eight of his golds, seven world records, which is just unbelievable. So, you say, what happens from here? He's 23 years old. He could swim you know, another couple of events in 2012. So it's not over yet. And he's just done an amazing thing.

CHETRY: You're right. Certainly not over. And Dara Torres has proved that even in your 40's, you can be incredible in the water. But, as you said, he's shattering these records.

Are we going to see another Olympics like this, perhaps a swimming event like this, in our lifetime?

SMITH: Probably not. But if we do see it, it might be from him. Because you know, he could technically swim as many as eight -- he could swim the eight events or more, in 2012.

But, this is just unheard of. When you think of how many heats you have to swim to get to this point -- 16, 17, 18, 20 races, maybe. It is just -- it really wears on the body, particularly when you're in a new climate. So, I don't think you'll see something like this, unless it's from Michael Phelps again, in our generation.

CHETRY: You know, I wonder -- we better get used to seeing. Because I'm sure we're going to see him all over the place in terms of endorsements. He got a $1 million bonus from Speedo and I'm sure there are many more endorsement deals in his future.

What are we talking here, in terms of money?

SMITH: Experts are already saying that he's going to make upwards of $30 million, just off of this Olympic performance alone. But, what I really like about Michael Phelps is, he has the ability to bring swimming to the next stratosphere just because of what he's done here. Think about swimming right now. We really look at it from Olympics to Olympics. And after an Olympic performer performs, you generally forget about that performance in a couple months after the Olympics is over.

What Michael Phelps can do is he can now draw people into swimming matches all over the world, for years and years. Perhaps leading up to the 2012 Olympics when he performs again. So, if he can build swimming up to that level as say, golf with Tiger Woods, when people used to just watch Majors and then he started doing so well and people started following things like the Buick Invitational, then you could see Michael Phelps making tens of millions of dollars a year for a very long time.

CHETRY: You're right. And it does have an impact. I mean, myself, along with many other girls, because of Mary Lou Retton, got into gymnastics. So, like you're saying, he could spawn future Olympians down the road.

What else is the big headline out of Beijing, now that we're done with you know, the Michael Phelps phenomenon?

SMITH: Well, there were two things. The first this is, as big as Phelps phenomenon was, the biggest news yesterday, or actually in today's morning papers was China. Because China's got this 35-19 edge on the U.S., in terms of gold, almost doubling their total. The Chinese are very, very happy with the way their performers have performed.

But, the biggest news today is Liu Xiang, their 110 hurdle gold medalist in 2004. They basically pinned all their hopes on Liu, to win in track and field for the Chinese. They don't do so well in that area. And Liu pulled out lame, right as the first start happened in the 110 hurdles. He had a hamstring problem for a number of weeks and just could not go. It was a terrible, terrible thing for the Chinese because, as I said, China's not doing so great in track and field, and this was their gold medal hope.

Liu Xiang is about as popular here as Yao Ming is. So, you can imagine, it's almost as if -- somebody mentioned before, it's almost as if Michael Phelps pulled the blame on his first race. It's just unheard of and it's really devastating to the Chinese.

CHETRY: Wow. But as you said, they're still really, really winning in the overall medal count. We still have time to catch up, though. Ryan Smith, great to see you. We'll check in with you again throughout the week. Thanks.

MARCIANO: Well, just about 30 minutes past the hour, some breaking news. Florida on alert as tropical storm Fay steers towards the Keys. Right now, the storm is pounding Cuba with 50 miles an hour wind. Those winds expected to strike in hurricane strength before reaching Florida later tonight. Hurricane watches are now in effect. And the storm has already been blamed for at least five deaths in the Caribbean.

Political upheaval in Pakistan. President Pervez Musharraf resigns to avoid an impeachment fight. He seized power in a 1999 coup but Musharraf has undergone some growing pressure from Pakistan's new ruling coalition to resign or face impeachment. Musharraf has been a long-time U.S. ally in the war on terror.

And a foster care fight in Texas involving eight children taken from a polygamist compound four months ago. Hearings begin today. The state says the children are in danger because their parents refuse to keep the kids away from the ranch and alleged abusers.

In June, more than 400 kids were released from foster care after the Texas Supreme Court ruled the state had no right to take the children.

And back to our breaking news. Tropical storm Fay picking up momentum and expected to become a hurricane as it churns towards the Florida Keys.

CNN's Reynolds Wolf live at the CNN hurricane headquarters in Atlanta.

What do you know, Reynolds?

WOLF: Well, Rob, the latest we have is the wind is still at 50 miles per hour. Some gusts getting stronger approaching 65 miles an hour. Now, the center of the storm is just to the east of Havana at this time, expected to make its way over to warm waters in the Gulf -- or rather the Straits of Florida.

Over here, we've seen some explosive convection in, I guess, would be the northeast quadrant of this system. Now, the latest path from National Hurricane Center brings this thing to the north. In fact, this doesn't only just go to the north, it goes right along the east -- the West Coast to Florida. Very similar to what Charlie did, Hurricane Charlie did back in 2004. So again, to watch this very carefully.

The path brings it just to the north of the Keys, pass the (INAUDIBLE), begins at 2:00 a.m. winds. It would wind some 65 miles an hour. Still, a storm. Not a hurricane as of yet.

But then as we get closer to Tampa, again, it looks like about 2:00 a.m. on Wednesday, winds around 70 miles per hour. But keep in mind, the forecast does have this thing reaching Category One hurricane strength before it makes landfall, possibly south of Tampa, and then back in the north water right along parts of the I-10 Corridor and then into the Carolinas and Georgia.

Keep in mind, though -- Rob, I know you know this, but our viewers at home might not, this storm's kind of really fickle. They do wobble quite a bit. There's a chance that it could move a little bit more to the east, perhaps more to the west. When it stays more to the west, much better chance for intensification, possibly Cat Two, maybe even a Category Three, a major hurricane. You'll never know with these systems. Let's send it back to you, Rob.

MARCIANO: And if you care to spend a week, Reynolds, it seems like they just had a hard time getting their head around this forecast, shifting it back and forth.

WOLF: The models have been all over the place. So, it's going to be really interesting, especially the next 12 to 24 hours, to see exactly how this storm system plays out and see what changes might come to the forecast.

MARCIANO: We'll be watching it carefully. Reynolds Wolf live for us in hurricane headquarters. Thanks, Reynolds.

WOLF: Any time.

MARCIANO: Kiran?

CHETRY: And to "Most Politics in the Morning" now. The Democrats set to convene in Denver in just a week and now speculation about Barack Obama's potential running mate is about to reach a fever pitch.

CNN Deputy Political Director Paul Steinhauser is live in Washington with a look for us.

Hi, Paul.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Good morning, Kiran. I think it's fair to say Barack Obama's got a big item on his to-do list this week.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL NOMINEE: Until I introduce my V.P. nominee, you're not going to try anything at me.

STEINHAUSER (voice-over): And Barack Obama has kept quiet. But when the Democratic convention starting one week from today, Obama needs to decide, if he hasn't already, who he wants as his running mate. Today, he campaigns in New Mexico.

Governor Bill Richardson is thought to be in contention for the V.P. job. And another contender, Senator Joe Biden, is in the spotlight as well. He went to the Republic of Georgia at the request of that country's president.

SEN. JOHN MCCAIN (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: Could I ask our veterans just to stand so we can say thank you, thank you for your service to our country.

STEINHAUSER: You'll probably hear more words like that later this morning as John McCain speaks in Orlando at the annual convention of the Veterans of Foreign Wars.

But it his fundraiser later in the day in Atlanta that's causing controversy. Ralph Reed, the one-time "Boy Wonder" of the Christian coalition, says he's involved with the event.

Reed is closely connected to a corruption scandal that rocked Washington. Not surprisingly, Democrats have pounced.

(END VIDEOTAPE)

STEINHAUSER: And the McCain campaign says there's no connection whatsoever between the fundraiser and Ralph Reed. As for McCain himself, he heads off the trail on Wednesday, back to the ranch in Arizona. And that gives Barack Obama the spotlight as we expect an announcement later this week of his running mate.

Kiran?

CHETRY: And what about the timing of all of this, Paul? Is it unusual to be so close to the conventions and not announce your pick yet?

STEINHAUSER: Yes. Four years ago, John Kerry named John Edwards 20 days before the conventions. That was a little early. But we're going to have an incredible three weeks -- quite a ride coming up. We got both conventions and both candidates announcing their running mates. We haven't seen something like this in modern times.

Kiran?

CHETRY: Paul Steinhauser for us this morning. Thanks.

MARCIANO: Well, candy prices are going up. Why that sweet tooth could cost you next time around. Gerri Willis is "Minding Your Business".

Cell block. The dogs that can sniff out cell phones smuggled into prison.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We have found them inside of boxes of food and cut-out books.

(END VIDEO CLIP)

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

(COMMERCIAL BREAK)

CHETRY: Well, if you want candy, it's going to cost you more. Gerri Willis is here with...

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right.

CHETRY: ...with the bad news.

MARCIANO: And "Gifts.".

WILLIS: It's the perfect song, yes. And the gifts, kids. It's Hershey's bar right here. I'm telling you, prices are going up for Hershey's. Here's what you need to know. OK. Now, you will pay attention to the inflation story, won't you?

Prices for chocolates going up. Hershey company announcing an increase in wholesale prices of 11 percent. So, that's the price that will go to retailers and presumably, they will pass it right along to us.

For multi-pack package candy lines, why? Well, because the prices of the things they put in this chocolate are going up. Cocoa, corn sweeteners, sugar, and yes, peanuts, are up 20 to 45 percent since the beginning of the year. Ouch!

So, Hershey's is raising its prices to consumers. So, this affects Kisses, Almond Joy -- I just love saying this -- Almond joy, Kit Kat, Milk Duds, Mounds, Reese, Mr. Goodbar, ROLO. Very sad story. And I'm going to leave this with you, Rob, because I know it's important to you.

MARCIANO: It is.

WILLIS: I also want to tell you this story has legs, Mrs. Fields is filing for bankruptcy. So if, you know, maybe you were jouncing for a chocolate bar, now you're going to buy a cookie, that maybe harder too. It's just really a horrific turn of events.

MARCIANO: Absolutely. Do you think there's going to be a fire sell in the Mrs. Field's cookies?

WILLIS: Well, no. They're filing for bankruptcy so they're going to try to work it out with the Chapter 11 bankruptcy. They say there's less consumer traffic. And malls, that's a sign of what's going on with the economy out there. Aggressive competition in the franchising industry. But I'm telling you, you're going to have to pay attention to this inflation story now, Rob.

MARCIANO: Who has to pay for Kisses nowadays? Does that cost money?

WILLIS: Chocolate Kisses.

MARCIANO: My ladies.

WILLIS: Kiran, though, am I right? Come on. Come on.

(CROSSTALK)

MARCIANO: All right. Thank you, Gerri.

Back to politics and faith. John McCain on abortion and stem cell research. Find out where he stands on both those hot topics.

CHETRY: Spy in the sky.

(BEGIN VIDEO CLIP) UNIDENTIFIED FEMALE: This is one of the devices law enforcement use. You simply put in the battery, attach it to the car and off they go.

(END VIDEO CLIP)

CHETRY: Kate Bolduan shows us how police could be tracking your every move in real time with no warrant. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

MARCIANO: Welcome back to the "Most Politics in the Morning." John McCain will be talking to voters in Orlando today. And over the weekend, McCain came face to face with Barack Obama on church forum on faith and it was in California if you miss it.

The candidates answered questions from Pastor Rick Warren. In an effort to help you make a more informed decision in this election, we've been playing longer versions of what the candidates are saying the voters about the issues. So, here's John McCain talking about the views -- on his views on stem cell research, same-sex marriage and abortion.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: I have a 25-year pro-life record in the Congress, in the Senate and as president of the United States I will be a pro-life president, and this presidency will have pro-life policies.

(APPLAUSE)

That's my commitment. That's my commitment to you.

PASTOR RICK WARREN, SADDLEBACK CHURCH: OK, we don't have to go longer on that one. Define marriage.

MCCAIN: A union -- a union between man and a woman, between one man and one woman. That's my definition of marriage.

(APPLAUSE)

I'm a federalist. I believe that states should make those decisions.

In my state, I've hope we will make that decision, and other states, they have to recognize the unique status of marriage between man and woman. And that doesn't mean that people can't enter into legal agreements. That doesn't mean that they don't have the rights of all citizens. I'm not saying that. I am saying that we should preserve the unique status of marriage between one man and one woman.

And if a federal court -- if a federal court decided that my state of Arizona had to observe what the state of Massachusetts decided, then I would favor a constitutional amendment. Until then, I believe the states should make the decisions within their own states.

WARREN: OK.

(APPLAUSE)

All right.

Another issue, stem cells. Now, we've had this scientific breakthrough of creating pluripotent stem cells through adult stem cells.

MCCAIN: Yes.

WARREN: So would you favor or oppose the federal funding of embryonic stem cell research since we had this other breakthrough?

MCCAIN: For those of us in the pro-life community this has been a great struggle and a terrible dilemma because we're also taught other obligations that we have as well. I've come down on the side of stem cell research. But I am wily optimistic that skin cell research, which is coming more and more into focus and practicability, will make this debate an academic one.

(END VIDEO CLIP)

MARCIANO: And we'll hear from the candidates in their own words throughout the morning. And, of course, CNN will have live gable to gable coverage of the Republican National Convention in Minneapolis Saint Paul which kicks off September 1st.

Prison cells.

(BEGIN VIDEO CLIP)

UNIDENTIFIED POLICE: I think we owe it to the victims to not allowing this to continue to run their enterprises from behind our bars.

(END VIDEO CLIP)

MARCIANO: How dogs are helping cut down on a growing problem in prison. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: Welcome back to the "Most News in the Morning." At prisons across the country, cell phones are becoming a hot ticket item for people behind bars. Now, officials are using specially trained K- 9s to sniff out those phones.

Here's CNN's Justice correspondent Kelli Arena.

KELLI ARENA, CNN JUSTICE DEPARTMENT AND SUPREME COURT CORRESPONDENT: Good morning, guys. You know, believe it or not, it is a growing and very serious problem. And it is taking some ingenuity to try to solve it. (BEGIN VIDEOTAPE)

ARENA (voice-over): They say in prison, you can get just about anything you want, for a price -- cigarettes, drugs, weapons. But the hot commodity these days, cell phones. And these dogs are trained to sniff them out.

SGT. DAVID BROSKY, K-9 OFFICER: We have found them inside of boxes of food, cut out books, in shoes with hollowed out soles, under mattresses inside, mattresses or pillows.

ARENA: At up to $400 a pop, cell phones are worth their weight in gold. That is a nice profit for a good smuggler --

UNIDENTIFIED MALE: Warning!

ARENA: Which apparently I'm not.

UNIDENTIFIED FEMALE: I'm going to have to pat you down because (INAUDIBLE).

ARENA: I got caught. But more than 800 phones did get in to Maryland's prisons last year.

MIKE STOUFFER, COMMISSIONER OF CORRECTION: These institutions are like cities. And a lot of goods and materials and people have to come in and out all the time.

ARENA: So why go to the trouble of training dogs to find phones? Philadelphia, January, 2008. Sean Tay Wright is gunned down as she prepares to testify against a career criminal. Investigators think it was a hit ordered from prison, with a cell phone.

MAJ. PETE ANDERSON, K-9 UNIT COMMANDER: I think we owe it to the victims to not allow inmates to continue to run their enterprises from behind our bars.

ARENA: And that's where these guys come in. The program has only been in place for a couple of months but already the dogs have found more than a dozen phones.

LT. RODNEY JORDAN, K-9 TRAINER: At first, I really wasn't too keen on the idea. I didn't think they would be able to separate the odor of the phones versus a lot of stuff that's in the institution.

ARENA: So how do the dogs tell the difference between a TV set and a cell phone on block nine?

UNIDENTIFIED MALE: Everything on earth has a scent signature.

ARENA: We would tell you more. But why give the criminals that kind of information. We'll share this. If you are caught with a phone behind bars in Maryland, you could get up to three more years in prison and a $1,000 fine. And no, you can't have it back to call a lawyer.

(END VIDEOTAPE)

ARENA: Officials from other states are now reaching out to Maryland hoping to replicate its success.

Rob, Kiran, back to you.

CHETRY: Leaving town, 25,000 tourists jamming roads leading back to the main land.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don't want to take a chance with the children.

(END VIDEO CLIP)

CHETRY: Tropical Storm Fay could hit Florida today. And, big, hairy, body of evidence.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We are now the best trackers in the world.

(END VIDEO CLIP)

CHETRY: Two men who say they found big foot's giant torso make their case live.

(COMMERCIAL BREAK)

MARCIANO: Your "Political Ticker" this Monday morning. Well, after a hug at a faith forum, the candidates are on the attack again this morning. A John McCain spokesman says, they both have, quote, "profound differences of opinions on issues." And Obama called the economy a disaster thanks to, quote, "John McCain's president."

Each candidate faced questions on abortion, same-sex marriages, leadership and faith on Saturday, in their first appearance together since the end of primary season.

Well, Barack Obama's campaign says it added 65,000 new donors last month. They helped the Democratic candidate raise $51 million, still a million shy of June's number. McCain camp says it raised 27 million in July, his best month yet.

Kiran?

CHETRY: Half of House Democrats could vote for Hillary Clinton at the convention. At least that's what Clinton supporter Congresswoman Loretta Sanchez says. The Obama campaign said Clinton's name will be put into nomination to recognize her historic bid for the presidency. Clinton, herself, has said she plans to vote for Obama.

It's being called Gitmo in Denver. Cages topped with barbwire. Activists groups protesting a holding cell that could be used for any mass arrests at the Democratic convention. The facility will help speed up processing and get people out of jail more quickly.

And for up-to-the-minute political news, head to cnn.com/ticker.

MARCIANO: Well, Senators Barack Obama and John McCain shared a special moment on Saturday. The two candidates embraced one another during the civil presidential forum hosted by Pastor Rick Warren of the Saddleback Church. After the forum, CBN correspondent and CNN contributor David Brody sat down with Obama and asked him about the negative ads targeting him.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL NOMINEE: I think ultimately the American people are going to understand by the time they go into the polling place in November that this is not an election about me. This an election about them -- ordinary people, their lives, their hopes, their dreams, the fact that their incomes have gone down over the last eight years, the fact that their jobs are less secure, that they have less retirement security, that their kids can't afford college, that jobs are being shipped overseas, that the tax code isn't fair and that special interests have come to dominate Washington.

And as long as we're communicating an active plan to fix those problems then I think we're going to do well.

DAVID BRODY, CBN CORRESPONDENT: Real quick, the born alive infant protection act. I got to tell you that's the one thing I get a lot of e-mails about and it's just not just from Evangelicals, it's about Catholics, Protestants, main -- they're trying to understand it because there was some literature put out by the National Right to Life Committee. And they're basically saying they felt like you misrepresented your position on that bill.

OBAMA: Let me clarify this right now.

BRODY: Because it's getting a lot of play.

OBAMA: Well and because they have not been telling the truth. And, you know, I hate to say that people are lying, but here's a situation where folks are lying.

I have said repeatedly that I would have been completely and fully in support of the federal bill that everybody supported, which was to say that you should provide assistance to any infant that was born even if it was as a consequence of an induced abortion.

That was not the bill that was presented at the state level. What that bill also was doing was trying to undermine Roe vs. Wade. By the way, we also had a bill, a law already in place in Illinois that insured life saving treatment was given to infants.

So for people to suggest that I and the Illinois medical society, so Illinois doctors were somehow in favor of withholding life saving support from an infant born alive is ridiculous. It defies common sense and it defies imagination and for people to keep on pushing this is offensive, and it's an example of the kind of politics that we have to get beyond.

It's one thing for people to disagree with me about the issue of choice, it's another thing for people to out and out misrepresent my positions repeatedly, even after they know that they're wrong. And that's what's been happening.

(END VIDEO CLIP)

MARCIANO: Coming up at the bottom of the hour, what John McCain said about America's greatest moral failure.

And AMERICAN MORNING is your convention headquarters. First, the Democrats, starting next week in Denver, the Best Political Team on TV brings you everything as Barack Obama makes history.