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Health Officials Encouraged by Flu's Apparent Low Severity; Obama Tax Plan Cracks Down on Scofflaw Companies; Parents of Missing Girl Talk on "Oprah"; Obama Promises Different Economic Role for Wall Street; U.S. Missing Out on Investment in Cuba; Experts Speculate on Supreme Court Replacement Pick; Firing for MySpace Comments Sparks Lawuit; Controversy over Red-Light Cameras

Aired May 04, 2009 - 06:00   ET

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


JOHN ROBERTS, CNN ANCHOR: Good morning. And thanks very much for being with us on this Monday, the 4th of May, as we begin yet another new week. I'm John Roberts.

KIRAN CHETRY, CNN ANCHOR: It's another new week. I'm Kiran Chetry, but we're still talking swine flu this week.

ROBERTS: Right.

CHETRY: Could be some good news.

ROBERTS: Some things don't change, but there is an evolution to the story this morning. That's what's nice about it.

CHETRY: Exactly. And we do have a lot to cover. Here are the big stories we're breaking down for you in the next 15 minutes.

We are entering a new phase, they're saying, in the swine flu outbreak this morning -- one of cautious optimism, U.S. health officials say that they're seeing encouraging signs that the H1N1 flu virus is not as dangerous as once feared, even though the number of confirmed cases in the U.S. continues to rise.

In just a few hours, President Obama will unveil a brand-new tax crackdown. The administration targeting U.S. companies to try to exploit tax loopholes allowing them to legally avoid paying billions of dollars in taxes. We're live at the White House.

Also two years after British toddler Madeleine McCann disappeared, her parents sat down with Oprah for their first U.S. interview. We're going to have a sneak preview, and we're also getting a look at what their daughter might look like now at age 6 from a new computer generated forensic image as the search for her still continues.

ROBERTS: But we start this morning with encouraging signs about the swine flu outbreak in a situation much different than just a week ago. There are now nearly 900 confirmed cases of the fast moving H1N1 virus in 18 countries with 20 deaths reported. Here at home, more than 226 people have been sickened in 30 states, but the nation's top health officials have come out with a unified message of cautious optimism. (BEGIN VIDEO CLIP)

DR. RICHARD BESSER, ACTING DIRECTOR, CENTERS FOR DISEASE CONTROL: There are encouraging signs. We're not out of the woods yet. But what we've learned about the virus itself, it doesn't contain the factors that we know are seen in much more severe flu strains. Each strain that comes out may have other factors we weren't aware of, but the ones we know about it's not there.

KATHLEEN SEBELIUS, U.S. SECRETARY OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES: There is some cautious optimism right now in terms of what is presenting itself in America, but it's early. We know that even if this doesn't present itself as a very virulent strain right now, it could come back with greater force in the winter and fall when we get into full flu season, so this is no time for complacency. We want to stay out ahead of this.

(END VIDEO CLIP)

ROBERTS: And this morning, it's back to business at one Catholic high school at the center of the outbreak in New York City. Classes will resume for the first time in more than a week at Saint Francis Prep in Queens. One in three Saint Francis students reported flu-like symptoms at a New York City Department of Health survey last week, but thousands of other kids all across the United States are still being told to stay home today. Here's CNN's Susan Candiotti.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: John and Kiran, good morning. Here at Saint Francis Prep School, the epicenter of New York City's swine flu outbreak, students are anxious to get back to school after an unexpected week of vacation. The flu has rattled nerves everywhere.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): It's goodbye to mask-wearing sanitation crews and hello to students at Saint Francis Prep School in Queens. After a top-to-bottom scrubbing, hallways won't be empty anymore.

DANA DA ROSA (ph), QUEENS: It was scary for me so close to my home and not knowing what to expect.

CANDIOTTI: Dana da Rosa (ph) and her daughter live across the street. Fourteen-year-old Alyssa (ph) goes to a different school so far untouched by swine flu. But when some classmates got sick, Alyssa's (ph) mom kept her daughter home and missed work to stay with her.

DA ROSA: Just wasn't sure if the schools were doing everything they needed to do to -- for her health.

CANDIOTTI: Even unconfirmed cases of swine flu have prompted schools in at least 19 states to shut their doors as a precaution. In Southern California, some closings called an aggressive move to slow the spread, but some parents question it. UNIDENTIFIED MALE: I think there are precautions that we need to be doing, and -- but don't overreact because I think we're a little overreacting.

CANDIOTTI: In Texas, Fort Worth schools are closed for two weeks. In Washington State, public officials ask employers to bear with parents who need unexpected time off to care for their children. Parents are frustrated.

UNIDENTIFIED FEMALE: I guess I just have to stay home with my kids. It's really scary.

CANDIOTTI: In Milwaukee, Wisconsin, a tennis tournament went on as planned but other non-sport related after-school activities were cancelled.

Back in Queens, New York, Dana da Rosa (ph) is waiting nervously to see what happens next.

(on camera): Will you change anything about what you do when you go back to school?

ALYSSA DA ROSA (ph), QUEENS: I'm going to start bringing hand sanitizer more now.

CANDIOTTI (voice-over): Students at Saint Francis and other high schools likely to do the same.

(END VIDEOTAPE)

CANDIOTTI: While this New York City school has given itself a clean bill of health, it may be a few more weeks before others are ready to reopen. And with the end of the school year rapidly approaching, a lot of parents may be wondering, will their schools be forced to shut their doors -- John, Kiran.

CHETRY: Susan Candiotti for us, thanks.

Well, this morning, the head of the World Health Organization, who last week warned of a full-blown swine flu pandemic, one that would place all of humanity under threat, is hitting back at critics who accused her of overkill.

In an interview with the "Financial Times," Margaret Chan warned the virus may return "with a vengeance," adding, "We hope the virus fizzles out because if it doesn't we are heading for a big outbreak."

And the debate has been raging about whether officials should close the U.S.-Mexico border because of the swine flu outbreak. It continues to be a big topic of conversation on our show hotline 877- MY-AMFIX. Here's some of what you're seeing.

(BEGIN VIDEO CLIP)

CALLER: These border crossings should be closed, not necessarily because of immigration issues but because of the spreading of the flu. I don't feel it has anything to do with immigration at this point.

CALLER: It would just be good judgment to close down the border temporarily from Mexico and not just close down the border but not have people flying back and forth to and from Mexico unless it's absolutely necessary.

(END VIDEO CLIP)

CHETRY: And on CNN's "STATE OF THE UNION WITH JOHN KING," Homeland Security Secretary Janet Napolitano defended the Obama administration's decision not to close the border with Mexico.

(BEGIN VIDEO CLIP)

JANET NAPOLITANO, U.S. SECRETARY OF HOMELAND SECURITY: We take our advice from the scientists. And if the scientists have said that closing the border, which by the way is an enormously complicated and expensive thing to do, but if they said that would be a wise thing to do to control the outbreak, we could have taken some steps. But the advice was exactly the opposite. It actually would have distracted us from the steps we did need to take to protect the American people, and that was focusing on what we could do to contain the virus that was already within our borders.

(END VIDEO CLIP)

CHETRY: The Homeland Security secretary went on to emphasize that closing the border would not slow the spread of swine flu within the United States.

ROBERTS: Now to politics and brand new this morning. President Obama is set to roll out a new tax plan today that would crack down on big companies not paying their fair share to Uncle Sam. The details are just coming out and our Suzanne Malveaux is live at the White House for us this morning to break it all down.

The big focus here, companies that do business overseas, Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Absolutely, John. We got a briefing from senior administration officials to explain the rationale behind this. And obviously they're saying that there are flaws in the international tax code that allow billions of dollars costing all of us taxpayers' money to escape the process. And so what they're going do is going to take a look. They're going to eliminate some of those tax incentives for companies to create jobs overseas. They are also going to take a look at those loopholes within the law that create these tax havens. So these are companies that are allowed to basically make their subsidiaries overseas disappear or individuals who are the breaking the law by hiding their money in these overseas accounts.

What they're going to do is beef this up. There's going to be about 800 new IRS employees. They're going to be in charge of law enforcement, making sure that this happens and that this is carried out. And finally, John, they believe that this is going to save at least $210 billion over the next ten years. That is money that the government says it desperately needs. That is one of the reasons why they are doing this. And you can imagine, John, the kind of pushback already that they're getting, about 200 letters to Congress from lobbyists and various business interests who say they don't think this is a good idea, John.

ROBERTS: I'm sure they're getting a lot of blowback on that.

MALVEAUX: Absolutely.

ROBERTS: By the way, hey, a little date night over the weekend at the White House. What happened?

MALVEAUX: Well, it's really quite interesting. Take a look at these pictures here. The first couple strolling -- this is the South Lawn, the grounds at the White House. They're passing the swing set, they're holding hands, very casual.

This was after, John, kind of a chaotic situation in Georgetown. They went out to dinner at a restaurant. Citronella, you may know it well having lived here. And about several hundred people gathered outside of the restaurant trying to take pictures and get a glimpse of them. They were cheering. There was a woman with a bullhorn saying, we're so happy you're here. So, obviously, a lot of excitement over this -- you can call it a first date, I guess, since his presidency when he stepped out of Georgetown, came back to a nice relaxing evening here at the White House, John.

ROBERTS: And Citronella, I know it well, never been there. And I guess it's really kind of tough to hide where you're going when you've got a 16-car motorcade driving you around town, too.

MALVEAUX: And 200 people en masse, so they find out where you're going to be, so really, really fun.

ROBERTS: Suzanne, thanks so much for that.

ROBERTS: The political lines now being drawn over President Obama's first Supreme Court appointment. The president is considering potential replacements for retiring Justice David Souter. Republicans are concerned that he's going to pick a liberal who will try to pull the court to the left, but the chairman of the Judiciary Committee, Senator Patrick Leahy, wants the president to take something more important into consideration.

(BEGIN VIDEO CLIP)

SEN. PATRICK LEAHY (D-VT), CHAIRMAN, JUDICIARY COMMITTEE: I want the president to pick somebody for all the American people. In the past few years, the court, many members of the court seemed to be more and more isolated from real Americans, real people. I would like to see somebody -- I like to see an appointment of somebody who has real life experiences, not just within a judicial monastery but somebody who can reflect the feelings of real Americans. (END VIDEO CLIP)

ROBERTS: Potentially raising the capital of potential picks such as Michigan Governor Jennifer Granholm or even the secretary of the Department of Homeland Security, Janet Napolitano. Justice Souter is going to retire at the end of the Supreme Court's term this summer.

Well, former Secretary of State Condoleezza Rice defending the harsh interrogation techniques used during the Bush administration. Yesterday, she told students at a Jewish day school in Washington that former President Bush would not have authorized anything illegal.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, FORMER U.S. SECRETARY OF STATE: Let me say this. President Bush was very clear that he wanted to do everything that he could to protect the country. After September 11th, we wanted to protect the country. But he was also very clear that we would do nothing, nothing that was against the law or against our obligations internationally. And so the president was only willing to authorize policies that were legal in order to protect the country.

(END VIDEO CLIP)

ROBERTS: Last month, the Senate Intelligence Committee report showed Rice was among the top Bush advisers who approved the use of waterboarding, something that President Obama has since banned and described as torture.

CHETRY: All right. Well, other stories new this morning. A Dallas Cowboys scouting assistant is paralyzed. It was the result of a horrifying accident at the team's practice facility this weekend. The Cowboys announced that 33-year-old Rich Behm (ph) fractures his spine when the team's bubble tent structure collapsed during a severe storm.

There you see what it looked like from the inside and now the outside. The team's routine practice became pandemonium with people running for safety as the roof collapsed on them. Two other Cowboys staffers suffered serious injuries.

And again, Behm was badly injured. They said that doctors are remaining optimistic. He underwent surgery. They say that he is still paralyzed, but hope is not lost because with any injury to the spinal cord, the swelling has to subside before they can finally make the determination about whether or not it's permanent.

And the future of the 137-year-old "Boston Globe" newspaper still up in the air this morning. Talks continued past midnight, Sunday, deadline between the unions and management seeking $20 million in concessions to try to save the paper. The "New York Times" company which owns the "Globe" has threatened to begin the process of shutting the paper down.

And it's been two years since Madeleine McCann disappeared while on vacation with her family. Her parents marking the occasion by talking with Oprah Winfrey. We'll hear what they're saying about what it was like being a suspect in the disappearance of their own daughter and also what she might look like today. She'd be 6 years old as the search for her continues.

It's 12 minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. It's been two years now since Madeleine McCann vanished without a trace while vacationing with her family in Portugal. It was a case that drew international attention and also accusations against her parents, Kate and Gerry McCann.

Well, the McCanns are now talking with Oprah Winfrey about their ordeal. It's their first U.S. interview. It's going to be airing later today, and Jason Carroll was able to get a preview of this. He joins us now with more on what they were saying.

And we all remember this case, of course. It was really a shocking and sad situation that happened to this family.

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Captured the attention of the world, and the reason why her parents agreed to do this interview is because of Oprah's global reach. She appears in more than 140 countries.

British investigators say the answer to Madeleine's disappearance still lies with someone at that Portuguese resort where she disappeared. Her parents have released a digitally enhanced picture showing what she might look like today if she were still alive at age 6. Her mother told Oprah some days she is simply overwhelmed.

(BEGIN VIDEO CLIP)

OPRAH WINFREY, HOST, "THE OPRAH WINFREY SHOW": Then do you let yourself go to the worst sometimes?

KATE MCCANN, MOTHER OF MADELEINE MCCAN: I mean I do. I think it's natural and, you know. I know people mean well when they say don't let yourself go there. And it's not going to help going there. As a mom, I have to be there at all times and I do. They're the times I kind of get down.

(END VIDEO CLIP)

CARROLL: Well, the interview continued. Madeleine's father says despair over his daughter's disappearance has s strained their marriage but says it has also made the family much closer.

(BEGIN VIDEO CLIP)

GERRY MCCANN, FATHER OF MADELEINE MCCAN: Child abduction, I think, could destroy any family. There's no doubt about it. It's one of the most devastating things. And if you look at what's happened just subsequently, that we -- we've been supported tremendously well and I think that's helped us stay strong and stay together. And obviously, we're really united in our goal and our love of Madeleine and showing our love (ph).

(END VIDEO CLIP)

CARROLL: Portuguese authorities closed the case last July. Detectives found no reason to charge any of the three people previously named as suspects. Madeleine's parents and a local man all had strongly denied any involvement and won libel awards against newspapers suggesting otherwise. Madeleine's mother says she still visits her daughter's room twice a day.

(BEGIN VIDEO CLIP)

WINFREY: Do you talk to her?

K. MCCANN: I do usually. I mean I tend to open and close the curtains morning and evening and say hello, really. Tell her we're still going and, you know, we're going to do everything we can to find her.

(END VIDEO CLIP)

CARROLL: She went on to say that it makes her sick to think that someone may have been watching the family and planning her daughter's abduction. They are still hoping some day someone will find her, but at this point, Portuguese authorities say the case is cold and that no leads so there's really nothing more that they can pursue at this time.

CHETRY: You know, are they using outside investigators to continue the case, the family?

CARROLL: They are. And doing the best that they can to just sort of move forward. But at this point, no leads, cold case.

CHETRY: What a nightmare for them. All right. Jason Carroll, thanks.

ROBERTS: President Obama cracking down on Wall Street, saying its role in the economy will be a lot different once we emerge from this financial crisis. We'll break down what that could mean for your money.

And exotic beaches, cigars and oil reserves. More of the world and many of our biggest competitors now investing in Cuba. Why it may be hard for the United States to catch up. We're live in Havana this morning.

It's coming up now on 18 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Twenty-one minutes after the hour. Welcome back to the Most News in the Morning. A live look at Atlanta right now where it's 52 degrees -- sorry, 63 degrees going up to a high of 52 (sic) today. Could be some thunderstorms in the forecast. So if you're about to drive downtown, make sure you bring an umbrella with you because you might need it later on today.

Let's fast forward now to some of the stories that we'll be watching on CNN, the story we'll be following very closely today.

Alaska's Mount Redoubt volcano getting angry. Yesterday, it sent a burst of ash 18,000 feet into the sky. Scientists say an explosive eruption is now more likely in the next few days.

This morning at 11:00 a.m. Eastern, Vice President Joe Biden returns to his old stomping ground. He'll be in Delaware to help kick off the renovation of Amtrak's Wilmington station paid for in part by President Obama's stimulus package.

And at 10:00 a.m., Senator Arlen Specter is going to hold a town hall meeting in Hershey, Pennsylvania. It will be the first opportunity for the senator to talk face to face with his constituents since switching parties. Specter made the switch from Republican to Democrat last week. But he made a special point yesterday in his appearance on "Meet the Press" and saying, "I'm not going to be an automatic 60 votes, you know, filibuster-proof majority. I'm not going to be the "loyal Democrat." I'm going to be my own person."

So we'll see.

CHETRY: He's not going to change. Yes, we'll see.

And meanwhile, Christine Romans is here talking more about what President Obama is saying about the role of Wall Street in the U.S. economy and how it could look different at the end of this recession.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, look, this is a president who took office four months after the collapse of Lehman Brothers. And with every speech, every interview, every move he makes, we're getting a better sense of what the economy is going to look like on the other end of this crisis. And this is a president who is really harnessing what is a once in a lifetime opportunity to really make some big changes on health care, on energy, on tax reform, as we say this morning and some other events.

This is what he told "The New York Times" about the role of Wall Street once this is all said and done: "Wall Street will remain a big important part of our economy. It just won't be half of our economy."

He said that the practices of Wall Street, the risk-taking, the excessive risk-taking and pay frankly for that risk over the past 10 or 15 years was frankly "unsustainable." This president says that we will get the securitization markets working again.

You know, the Treasury and the Fed are essentially stepping in where Wall Street isn't or won't, or the banking sector won't right now because of a lack of confidence. He said it will take time. We must be patient but those will return. But he said we need good, solid regulation for these markets and that's what he's going do. And he seemed to have disdain really in this interview for the 25-year- olds getting $1 million bonuses and said that he would prefer if the smart, mathematically inclined would go into engineering and technology, not necessarily into Wall Street.

Of course, those who work on Wall Street and have been on Wall Street for a long time will say that if you're going to diminish the role of Wall Street and the size of the economy, then you definitely have to have something in its place, otherwise economic growth slows. So, it would be interesting to see.

CHETRY: Yes, it's an interesting quote because how does the government determine that it's going to be -- not going to be half the size of our economy in Wall Street?

ROMANS: Well, that's a very good point. And also, you know, the regulation part of this, we have had regulation in the past. Our regulation didn't work. So part of this has to be fixed from the Washington angle, not necessarily just from the Wall Street side of things. So there's a lot of work to be done but everyday we get a clear picture of what this president is trying to do. And he's painted a picture quite, frankly, of an economy that's going to be very different from you and I on the other side of this crisis.

CHETRY: Christine Romans, thanks.

ROMANS: Sure.

ROBERTS: I might need to make a correction. Weather in Atlanta 63 right now, going up to a high of 72. I might have said 52.

CHETRY: Right. That's all right. I thought that would be the first time we've seen that in a while for May.

ROBERTS: I had one of those nights where I went to sleep at 8:00 and woke up at 11:30. And I'm not complaining. I'm just saying there's some low off today.

ROMANS: Right. You know, John, every decade, you can have a little mistake. That was your mistake in a decade, right? Let's put it that way.

ROBERTS: I already made my mistake for the year about two weeks ago. Really angry at myself. Thanks, Christine.

Now, everyone knows that every keystroke at work can be monitored, but what about private conversations at home on sites like MySpace and Facebook. Find out just how far your boss can go.

And America's biggest competitors are expanding their footprint in Cuba while Washington watches from the sidelines. Why there's a lot more than tourism dollars at stake.

It's 25 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. We've heard President Obama talk about a new beginning in relations with Cuba. But right now, while Washington is searching for ways to improve ties with the communist island, the rest of the world is already cashing in.

CNN's Jim Acosta is live in Havana right now with more.

Good morning, Jim.

JIM ACOSTA, CNN CORRESPONDENT: Good morning, Kiran. That's right. During our journey to Cuba, we've seen some stunning examples about how America's biggest competitors are investing heavily in Cuba, from Spanish-owned hotels to Chinese oil drilling operations. But because of the U.S. embargo on Cuba, all the Americans can do is watch from the sidelines, 90 miles away.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): If Americans are wondering what it's like to travel to Cuba, just ask a Canadian.

UNIDENTIFIED MALE: There's a mistake about Cuba. Let's be honest here.

ACOSTA: Or an Australian.

UNIDENTIFIED MALE: It's just great, a great time. Beautiful country.

ACOSTA: Or South African pro golfer Ernie Els, the star attraction at a Cuban golf tournament aimed at turning the island into the sport's next destination.

ERNIE ELS, PGA GOLFER: It's a great tourist destination. It's unbelievable that those can open up, especially (ph) American dollars. And, you know, it maybe time for us to open up.

ACOSTA: Every year, foreign travelers escape to Cuba's exotic shores and Spanish colonial streets, pumping an estimated $2 billion into the island's economy. So it was no surprise when Cuba's deputy tourism minister told me the island is ready to welcome back its neighbor to the north.

ALEXIS TRUJILLO, CUBA DEPUTY TOURISM MINISTER (through translator): Our country has always been open. They are the ones who haven't been able to come.

ACOSTA (on camera): Tell a Cuban, take me to the beach, and they'll take you here, Varadero Beach. The sand belongs to the Cubans. The resort partially owned by a Spanish company.

(voice-over): That's why a growing number of U.S. senators want to end the U.S. travel ban on Cuba and consider scrapping the 47-year embargo on the island.

SEN. BYRON DORGAN (D), NORTH DAKOTA: We don't limit the rights of travel to China or Vietnam, communist countries. ACOSTA: But there may be more than travel at stake. China is now a player in Cuba, selling the island these tourist buses. The Chinese are getting more than cigars out of Cuba. They're tapping into the country's oil reserves.

When it comes to business, Cuba is changing its tune. Once known for its classic cars, the island is no longer just a time machine to the past, leaving the U.S. with a choice, shift a decades-old policy or let sleeping dogs lie.

(END VIDEOTAPE)

ACOSTA: Now the next phase in U.S.-Cuba relations won't be easy. As a former ambassador from Canada to Cuba told me, it's complicated as both sides start talking. Old controversies are sure to rise to the surface -- Kiran.

CHETRY: Jim Acosta for us in Cuba. Great report, thanks so much.

ROBERTS: Coming up now on 30 minutes after the hour and checking our top stories this morning.

Mixed messages about swine flu. While the number of cases worldwide grows to just shy of 1,000, health officials here in the United States and Mexico are now saying we may have turned a corner in this fight. The acting director of the Centers for Disease Control and Prevention says they are seeing encouraging signs. And Mexican authorities could lift a wide-ranging shutdown by Wednesday.

Score one more for the French Navy in the battle with pirates off the coast of Somalia. A French naval ship intercepted 11 suspected pirates today in the Gulf of Aden. Defense officials say the pirates were traveling in two assault vessels and the mother ship loaded with rifles and rocket launchers. It's the third time in the past month the French have confronted pirates on the high seas.

And former senator and presidential candidate John Edwards says he is cooperating with a federal investigation into his campaign spending. Edwards' political action committee paid more than $100,000 for video production to a company owned by a woman with whom Edwards admits having an extramarital affair. In a statement, Edwards says he is confident that no campaign funds were used improperly.

There's plenty of buzz in Washington about President Obama's first Supreme Court appointment. The president says he expects to have a replacement for retiring Justice David Souter in time for the court's next session in October. Some senators are already nudging the president to look beyond the bench and maybe further diversify the court with his pick. Joining us now from Washington to talk more about this and other things political, Democratic analyst and CNN contributor Hilary Rosen along with Republican strategist and former Mitt Romney campaign spokesman Kevin Madden. Good morning to both of you.

So, let's start with you. Who do you think that President Obama is going to pick? Will he pick somebody from the circuit court of appeals or do you think he'll reach out to somebody with political experience, perhaps a Jennifer Granholm from Michigan or maybe even a Janet Napolitano?

HILARY ROSEN, POLITICAL DIRECTOR, HUFFINGTONPOST.COM: This is the first time in history really the court has been so homogenous and having somebody -- and having a court with sort of no elected official experience, very little private practice experience. There are a lot of people who are suggesting that would be a really good move. I think many of us are hoping he'll pick a woman.

Obviously there's a greater need for diversity on this court. There are no Latinos on the court. So, it's a big charge. There are a lot of things that you try and accomplish with a single appointment, but you know, the good news is it's likely that President Obama is going to have more than one appointment over the course of his term and I think that, you know, progressives are going to be patient here.

ROBERTS: Right. Kevin what would you like to see? Certainly, Souter wasn't the conservative that George Bush 41 thought he was going to be. But he wasn't a complete liberal either. He had some centrist policies? Do you hope to see the president replace Souter with somebody like-minded or some people are suggesting, trying to tilt that part of the court further to the left by picking a real liberal.

KEVIN MADDEN, VICE PRESIDENT, GLOVER PARK PUBLIC RELATIONS FIRM: I think there's very little chance we're going to get the conservative that Kevin Madden would like to see on the court.

ROBERTS: That goes without saying.

MADDEN: But I do think that what we're going to see is -- I think the Republicans are probably gearing up for a fight with somebody who President Obama is going to appoint, is probably going to be a judicial activist. You heard it in the president's remarks where he talked about looking for somebody who is going to focus on empathy. Empathy in many ways is a direct reference to somebody who's going to look at the court in order to legislate from the court and that worries a lot of conservatives and it ought to worry a lot of Americans.

ROSEN: The Republicans are getting their talking points ready. My friend Kevin, they've already starting with the labeling of judicial activist. We don't even have the nominee yet and that's really what this is about. I think the Republicans are going to oppose anybody that President Obama picks and try to fit them in a box.

ROBERTS: Either side, you got to draw your battle lines right. Kevin, I just want to stick with you for a second here, Republicans trying to remake themselves. First meeting of the National Council for a New America. Your old boss Mitt Romney is part of that, House minority whip Eric Cantor as well. Is this the group of people that can remake the Republican party? MADDEN: Well I hope so. I hate to quote Mao on this one, but the journey of a thousand miles begins with a first step and this is very much the first step. I think Republicans know that we have two problems; We have a communications problem and we also have an ideas problem. And right now, these folks are coming together to remake the Republican party again as a party of ideas and also to look at ways where we can modernize our communications, both our infrastructure and our message, in order to reach these voters. The reason we've done very poorly in the last two elections John is because we haven't reached out to that broader swath of the American electorate that really cares about some big issues. And that larger swath of the American electorate, that includes independents and many moderate Democrats. So this effort is out there to put together a stronger message to reach these voters.

ROBERTS: What do you think, Hilary? Can they do it? Can they remake themselves into the party of the 21st century? I mean, Democrats were in a horrible position just a few years ago. Look at where they are now.

ROSEN: Right. I think Kevin is right, they have to try. I hate to bring back that campaign slogan, it's just lipstick on a pig. But it's tempting to talk about.

ROBERTS: Whoa!

ROSEN: But they're on the right track. But I think that they are on the right track. Clearly they need to find a way to appeal to younger voters, something that Democrats won in very wide margins this year. There's just a sense that Republican party politics have taken them too far to the right, focus too much on social issues which young people don't feel so strongly about. And that there was too much of a disparity in helping the rich at the expense of the middle class. I think Kevin is right. They need more ideas.

ROBERTS: All right, we'll see if they come up with them. Thanks very much, so much, Hilary Rosen. Kevin Madden, great to see you this morning.

MADDEN: Great to be with you.

ROBERTS: Kiran.

CHETRY: You may want to think twice before you talk shop on MySpace or Facebook. Find out just how far a company can go in monitoring what you're saying outside of work.

Also right now, there are some violent thunderstorms marching across the south. Dangerous wind, hail, weather for tornadoes. Our Rob Marciano keeping an eye on all of the action for us. It's 36 minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Sometimes you may forget but anything you send from a work account is fair game for your bosses to read, but what about cyberchat done in the privacy of your own home? You may be surprised to learn that in some cases, that's not off limits either. CNN's Alina Cho is following this story for us. Your home computer?

ALINA CHO, CNN CORRESPONDENT: That's right. We were really surprised by this story, guys. Good morning. Good morning, everybody. We all know that if you're sending an e-mail from work, pretty good chance the bosses are watching you or at least they could if they wanted to. But what if you're at home on MySpace on your home computer and off the clock? You're not responsible for what you say there, right? Wrong. It cost two restaurant workers in New Jersey their jobs.

(BEGIN VIDEOTAPE)

CHO: Did you ever in your wildest dreams think that making a comment like this on MySpace would get you fired?

DOREEN MARINO, FIRED FOR COMMENTS ON MYSPACE: Absolutely not. Never in a million years would I have thought that this was going to get me fired.

CHO (voice-over): It did. Doreen Marino says she was blindsided when in 2006 her boss at this Houston's restaurant in Hackensack, New Jersey fired her, not for bad performance or calling in sick, for allegedly making derogatory comments about one of her managers in a private discussion group on MySpace. Members only, password required, created specifically so she and other co-workers could gossip. You want to vent.

MARINO: Better to vent there in my opinion, take it somewhere where no one is going to hear you.

CHO: Marino was wrong. She says managers at the restaurant got hold of the password, didn't like what they saw and as a result according to Marino, fired her and another worker.

(on camera): Did you feel like that was a violation of your privacy?

MARINO: Absolutely. They weren't invited. They were not members of the group. In my opinion, I felt they had no business being there.

CHO (voice-over): She is so mad, she and the co-worker are suing the owners of Houston's for invasion of privacy. The parent group of Houston's would not comment about the lawsuit but in a statement to CNN said, quote, this is not a case about cybersnooping, the First Amendment or privacy. It's about two staff members who were let go for unprofessional conduct, including, says the company, disparaging comments about our guests and sharing a product knowledge test before it was administered. This misconduct was voluntarily brought to light by a member of the online group.

Is it reasonable, is it really reasonable to expect that you're writing things on MySpace, somebody is not going to see it?

MARINO: Where do we draw the line? We have to the right to say what we want in a private environment.

CHO: Or do they?

UNIDENTIFIED MALE: Technology is changing faster than the law and faster than our social norms. So, the laws and the courts don't really know how to handle this, and it's not like they'll catch up.

CHO: Marino says she's hoping to set a precedent.

MARINO: There has to be some sacred space in our lives where we can feel comfortable speaking our minds.

(END VIDEOTAPE)

CHO: That is at the heart of the debate. As you heard from our Internet expert, there are no laws on the books to deal with this. The problem, no surprise to anyone is that the Internet is changing faster than those laws can be written. The expert says today there's a lawsuit on MySpace. Tomorrow there will be a similar case on Twitter.

The norms are changing. We're all used to chitchatting maybe at the local bar and saying, my boss is really bad, can you believe he or she did that? The problem, is that really different from saying my boss is really bad, can you believe he or she did that, and there's written evidence? So, I think this woman thought that there was a reasonable expectation of privacy because she was on a private discussion board. But the truth is according to our expert, if you're online and you write something, it's there forever, and that's part of the problem. Ultimately, anyone can see it.

CHETRY: Something to keep in mind, that's for sure. Alina, thanks.

CHO: You bet.

ROBERTS: Right now, a powerful storm is hitting the Southeast, a tornado watch in effect this morning. CNN's Rob Marciano monitoring the dangerous conditions for us this hour. He'll have an update coming right up.

And more Madonna adoption drama. A man claiming to be the girl's father speaking out now as a judge in Malawi gets ready to make a decision. We'll find out what he's got to say. It's 43 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. A live look at Raleigh, North Carolina. Right now it is 71 degrees, but it is going up to 80 today. Unfortunately, there are thunderstorms in the forecast, so keep that in mind if you're traveling through the area.

At 45 minutes past the hour, we fast forward through some of the stories we'll be watching today on CNN. Defense chief Robert Gates on his way to Egypt right now. He's due to arrive in Cairo this afternoon. It's the first stop on a Mideast tour aimed at reassuring allies about the U.S. diplomatic outreach to Iran.

Right now, Malawi's highest court is considering Madonna's latest adoption bid. The singer was not at today's hearing. Last month though, a lower court rejected Madonna's initial request to adopt a little girl named Mercy. Now there's another twist. There's a man claiming to be Mercy's father speaking out saying that he wants to take care of this child. Meantime, this baby has been in an orphanage. A spokesperson for Madonna told the Associated Press there is no proof that Mercy is his biological daughter.

Today the Homeland Security Council will hold an exercise to prepare for the upcoming hurricane season. A number of Cabinet secretaries will be participating, including the secretary of defense, as well as the attorney general and staff to the president as well as vice president - John.

ROBERTS: Rob Marciano is down there in the weather center in Atlanta, tracking all of the extreme weather of this day, and there is a lot of it, too. We've got some severe storms moving across parts of the country. Rob, who's in the crosshairs this morning?

(WEATHER REPORT)

CHETRY: The Oracle of Omaha, as they call him, dispensing his wisdom to scores of financial followers this weekend. We go one on one with Warren Buffett and get his prognoses for the nation's economy.

Also, smile, you just got a ticket. Hidden cameras on traffic lights used to raise monies in towns that are strapped for cash. Some say it makes intersections less safe and is it fair? It's 49 minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. Warren Buffett knows a thing or two about investing and your money, and he told a weekend meeting of his Berkshire Hathaway shareholders that he thinks the nation's economic crisis has passed. CNN's Poppy Harlow sat down for a one-on-one interview with the Oracle of Omaha.

POPPY HARLOW, CNNMONEY.COM: John and Kiran, well, 35,000 people descended on Omaha, Nebraska this weekend for one reason, to hear what Warren Buffett has to say about the crisis and where we stand in it. Last fall when I spoke to Buffett, he said we were in the middle of an economic Pearl Harbor, but now he says times have changed.

(BEGIN VIDEO CLIP)

WARREN BUFFETT, CEO, BERKSHIRE HATHAWAY, INC.: It isn't Pearl Harbor anymore. We're in an economic war of sorts, but the situation has come a long ways since we talked. At that time, the financial system shortly before that, middle of September, very, very close to a meltdown. I mean, it was a strike at the very heart of the American economic system. A lot of smart things were done then. I give great credit to the people that were working on the problem.

Getting in there and guaranteeing the commercial paper, the money market funds, it brought stability to the system, and that has laid the framework for an improved economic situation. But that's going to take time. So, we are now in the more drawn-out phase of fighting the battles of the war and you know, they come along like Chrysler or whatever it may be, and you take them one at a time. You don't win them all, but the crisis has passed.

(END VIDEO CLIP)

HARLOW: Now, Buffett says the Obama administration is fighting a number of battles that are not of his choosing but he says the administration understands the problems well, and he says the government is going to get done whatever it has to -- John, Kiran.

CHETRY: All right. And to see Poppy Harlow's full interview with Warren Buffett, go to CNNmoney.com.

ROBERTS: Smile, you're on ticketcam. Critics are calling it Big Brother justice, an all-out ripoff in tough times. Red-light cameras now being used more and more to help cities catch up financially, but are they doing it at expense of your safety? It's 54 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News in the Morning. You know, the cameras are everywhere these days but more and more, these hidden cameras are being used to snap photos of drivers breaking the law. They bring in an awful lot of money, but do they really improve safety? Carol Costello joins us now. So what is this, safety device or cash cow? What do you think?

CAROL COSTELLO, CNN CORRESPONDENT: I think it's both, John. Many cities are expanding the use of these cameras, not only to catch red-light runners, but to catch speeders, too. Critics are outraged, saying safety is not the top priority here. Money is, especially now that so many cities are suffering because of the economy.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): Four, three, two, one, gotcha. Red-light camera, once law enforcement novelties, today they're common, and boy do they punish red-light runners. We met Marion in Los Angeles, outside of traffic court, ready to fight what she got in the mail.

MARION, RECEIVED TICKET: A ticket for $436. I mean, nobody has no job, so how do you expect us to pay it?

COSTELLO: No wonder protests over what some call Big Brother justice are all the rage online. Some drivers are trying to trick the camera, using photo blockers that claim cameras won't see their license plate numbers because they produce blurry photos. Los Angeles police say all that angst is misplaced. Since installing red- light cameras, the number of accidents have dropped significantly, and there have been zero fatalities, and the cameras brought in $3.3 million in fines in 2007 alone. It's that combination of Big Brother watching and big-time profit that really bothered Georgia lawmaker Barry Loudermilk. He's known as the red-light man here.

REP. BARRY LOUDERMILK, GEORGIA STATE HOUSE: This light has been the largest money generator for the city of Atlanta. It produces a lot of revenue, from the reports, about $1.3 million off this intersection last year.

COSTELLO: Just this intersection.

LOUDERMILK: Just this intersection.

COSTELLO: He says some towns in Georgia who put up red-light cameras shorten the length of time a light stays yellow to catch more red light runners. So, he pushed through a law that requires lights in Georgia to stay yellow for one second longer. This yellow light, for example, went from 3.6 seconds to 4.6 seconds. So, one second, just one second makes all of that difference.

LOUDERMILK: It does because it gives the motorist adequate time to clear the intersection.

COSTELLO: Since the law took effect in January, at least three Georgia communities will no longer use red-light cameras because they're not cost effective.

UNIDENTIFIED MALE: The objective is deterrent.

COSTELLO: Safety experts tell us they're all for extending the time a light stays yellow. They also say there's no doubt red-light cameras have been effective.

UNIDENTIFIED MALE: Our overall position on red-light cameras is that they are effective. They are saving lives by preventing people from disobeying the law.

(END VIDEOTAPE)

COSTELLO: Critics do say these cameras prevent people from running red lights, at a cost, though. It increases rear-end collisions because people slam on their brakes to stop at the red light, and the person behind them, well, you know what happens. Other safety experts say that is true but the cameras do reduce more serious side-impact crash, crashes that are often fatal and oh, by the way, Marion, the poor woman standing in line in Los Angeles, waiting to pay her $436 ticket, she paid it. She didn't fight it. She's out $400.

ROBERTS: Well, some people choose to fight, and others don't. Carol Costello for us this morning. Carol, thanks so much.