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American Morning

North Korea Sentences Two American Journalists to Twelve Years in Jail; More Bodies, Debris Found at Air France Crash Site; Gas Prices on the Rise Again; President Obama to Push for More Spending; South Dakota Rancher Wins $232 Million Powerball Jackpot; White House Is Looking For New, Faster Ways to Save and Create Jobs; First Family Checks Out Sights in Paris; Palin Hits New York

Aired June 08, 2009 - 06:00   ET

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


ANNOUNCER: This is CNN breaking news.

JOHN ROBERTS, CNN ANCHOR: And good morning, thanks very much for being with us on the "Most News in the Morning." It's Monday. It's the 8th of June, starting a brand new week with a whole lot to tell you about. I'm John Roberts.

KIRAN CHETRY, CNN ANCHOR: And I'm Kiran Chetry. Glad you're with us. And we do start with breaking news.

American journalists Laura Ling and Euna Lee have been convicted of "grave crimes" and sentenced to 12 years of hard labor in North Korea. Washington demanding Pyongyang release both women. The State Department says it is deeply concerned and is working right now to secure their release.

You may remember they were taken by North Korean officials after trying to report a story on refugees in China. The allegation was that they crossed the border into North Korea.

Well, the news comes as the Obama administration warns it is considering placing Pyongyang back on the list of states that sponsor terrorism. Secretary of State Hillary Clinton calling North Korea's recent nuclear provocations very dangerous for the region and the world. We're following developments live at the White House this morning.

And more bodies recovered near the site of last weekend's crash of Air France Flight 447. This morning, recovery crews also finding more debris from the jetliner floating in the Atlantic Ocean. In a moment, we'll take you live to Brazil where there are now new questions about a key sensor on that plane.

ROBERTS: But we begin this morning with the breaking news. Two Americans on trial deep inside North Korea now facing 12 years of hard labor. Overnight, Pyongyang's top court found television journalists Euna Lee and Laura Ling guilty of "grave crimes" against the Korean nation. The two women were accused of spying when they were detained back in March.

CNN's Jason Carroll is here with brand new developments this morning, and Elaine Quijano is live at the White House where Washington is pressing for their release. Let's start with Jason.

Twelve years in a labor camp. That's got to be an awfully frightening.

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Very harsh. And, you know, obviously a big disappointment to their families who've been holding vigils, you know, to try to secure their release. North Korea's state-run media is reporting that the country's high court has sentenced the American journalists to 12 years of reform through labor. Now that means Laura Ling and Euna Lee's sentence will be served at a labor camp for what the court is calling a grave crime committed against the Korean nation for their "illegal border crossing."

And just in to CNN this morning. The State Department is responding saying, "We are deeply concerned by the reported sentencing of the two American citizen journalists by North Korean authorities, and we are engaged through all possible channels to secure their release. We once again urge North Korea to grant the immediate release of the two American citizen journalists on humanitarian grounds."

Ling and Lee were working on a report about North Koreans fleeing the country. And when they were detained by soldiers patrolling the border between China and North Korea, they were working for Current TV, a media company co-founded by former Vice President Al Gore.

U.S. Secretary of State Hillary Clinton called the charges baseless and demanded their release. And just before the sentencing, Laura Ling's sister, Lisa, spoke about her sister at a commencement speech in San Diego.

(BEGIN VIDEO CLIP)

LISA LING, SISTER OF LAURA LING: Quite honestly, the story that my sister went to do wasn't one that we were that concerned about because they had no intention when they left the United States to cross into North Korea. My sister is an amazing journalist and she's very passionate about what she does.

Yes, she's -- I mean, she is a good person who wanted to tell a story, and this unfortunate event has happened. And we just hope that she's OK and that she'll be returned home to us.

(END VIDEO CLIP)

CARROLL: Well, North Korean experts say the U.S. will continue back- door negotiations. Several senior administration officials say the idea of sending Al Gore to help is under consideration. Also a possibility, sending New Mexico Governor Bill Richardson who has worked in the past for the release of people held by North Korea. As it stands right now, the Swedes will continue working behind the scenes to try and help.

ROBERTS: We're also going to be talking with New Mexico Governor Bill Richardson coming up in our 8:00 hour this morning. So we'll see what he has to say about all of this. Jason, thanks so much for that.

CHETRY: He successfully helped secure the release more than a decade ago of at least two others that were being held.

ROBERTS: Yes, twice, 1994 and 1996.

CHETRY: All right. Well, we're going to, of course, bring you that a little bit later.

Meanwhile, we're following a story from the White House as well this morning. CNN's Elaine Quijano working her sources, the only reporter now live at the White House this early in the morning.

What are you hearing about what the White House may or may not be able to do in this situation, Elaine?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, Kiran, we have been reaching out to senior aides this morning for any kind of comment or reaction. So far no word back just yet, but you can be sure this topic is going to be front and center here at the White House.

Now, this development is happening at a time when, of course, the picture surrounding North Korea is becoming more and more complicated.

(BEGIN VIDEOTAPE)

QUIJANO (voice-over): After North Korea's provocative actions, including its missile and nuclear test last month, the regime could wind up back on the U.S.'s list of state sponsors of terrorism, according to Secretary of State Hillary Clinton.

HILLARY CLINTON, SECRETARY OF STATE: Well, we're going to look at it. There's a process for it. Obviously, we would want to see recent evidence of their support for international terrorists.

QUIJANO: Clinton says the U.S. is just beginning to look for that evidence but if officials do press ahead, it would ratchet up tensions even further. The move would mean South Korea could possibly intercept North Korean ships suspected of supplying missiles and nuclear materials to other countries, actions Kim Jong-il's regime has warned would provoke retaliation. Still, President Obama on his trip to Europe made clear they U.S.'s patience with North Korea is wearing thin.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I don't think that there should be an assumption that we will simply continue down a path in which North Korea is constantly destabilizing the region.

QUIJANO: CNN foreign affairs correspondent Jill Dougherty says behind the scenes U.S. officials are grappling with how best to deal with the regime.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: There's enormous frustration about how to really put the pressure on them and get them to do what they have promised to do, which is end their nuclear program.

QUIJANO: For now, the U.S. wants tougher United Nations sanctions.

CLINTON: If we do not take significant and effective action against the North Koreans now, we'll spark an arms race in northeast Asia. I don't think anybody wants to see that.

(END VIDEOTAPE)

QUIJANO: Now in the meantime, as for the journalists, we're continuing to work our sources and will certainly get back to you, Kiran, as soon as we get something. Over the weekend, we should tell you, Secretary Clinton said that the journalists' attention was a humanitarian issue separate from political matters and she called for the women to be let go. Now that North Korea has ignored that call, there is certainly increased pressure on the United States to change its approach to North Korea -- Kiran.

CHETRY: Tough situation right now for sure. Elaine Quijano for us at the White House this morning. Thanks.

ROBERTS: Also new this morning, New Orleans Mayor Ray Nagin is a long way from the French Quarter. Nagin and his wife are quarantined in China after a passenger on their flight from the United States showed symptoms of the swine flu. They're being kept at a hotel in Shanghai along with a member of the mayor's security detail. The spokesman says the Nagins have shown no signs of the H1N1 swine flu virus.

The man charged with killing late-term abortion Dr. George Tiller last week is warning of more violence to come. Scott Roeder telling "The Associated Press" "similar events are planned around the country as long as abortion remains legal." The Justice Department says the threat is being taken seriously and has ordered additional protection for abortion clinics. A leader of the anti-abortion movement called Roeder a "lunatic."

More bodies and debris from Air France Flight 447 found at the Atlantic Ocean. Authorities say they have narrowed their search area now and this morning new theories emerging as to why the plane went down.

Seven minutes now after the hour.

(COMMERCIAL BREAK)

CHETRY: Well, you may have to throw a couple of extra bucks in your wallet if you're going to fill up. Gas prices on the rise. Christine Romans is going to join us in a minute to tell us what exactly is going on?

We're also going to hear some of your calls. A lot of people steamed about it.

Meanwhile, it's ten minutes past the hour. Welcome back to the Most News in the Morning on this Monday. The Obama administration could announce as early as today a list of the nation's largest banks that say they can repay billions in federal loans. The Treasury Department has invested about $200 billion in more than 600 banks under its financial rescue program.

Well, in recent months, more banks have sought permission -- that's right, permission to return the money. They want to avoid restrictions on things as executive pay as well as others. The administration has allowed about 20 smaller banks to do so.

Last night's Tony Awards anything but a good time for Poison's Bret Michaels. Check this out.

Well, at the end of the performance with Broadway's "Rock of Ages," Michaels actually get smacked in the head. There you see it by a set going down.

Wow, knocked to the ground. They don't know yet the extent of his injuries. The spokesman for the Tonys says Michaels "missed his mark."

Well, yes, that's a little obvious but hopefully he's doing OK this morning. Maybe the cowboy hat protected him.

ROBERTS: It looks like he took it right in the nose.

CHETRY: I know. Ouch.

Well, Stephen Colbert going commando. The Comedy Central pundit is taping shows in front of 450 troops at Camp Victory in Iraq. The top commander in Iraq was his first guest for the taping and he brought the shears.

President Obama joined them on satellite with orders to give Colbert more of a military-style haircut. It was the first time in U.S. history that a TV show has actually been produced entirely in the combat zone. He doesn't look bad.

ROBERTS: To developing news now, searchers are looking for the remains of Air France Flight 447 narrowing their focus after locating 17 bodies, hundreds of personal items and more pieces of the plane. Right now, they are combing an area called the "sea of debris" more than 700 miles off of Brazil's northeastern coast. And this morning, there are new questions about the jet's air speed sensors. Investigators want to know if the system sent incorrect readings leading the plane to fly either dangerously fast or slow.

This morning we're tapping into the global resources of CNN. Our Karl Penhaul is live this morning in Recife, Brazil.

Karl, what do we know this morning?

KARL PENHAUL, CNN VIDEO CORRESPONDENT: Well, this is an operation, a search and rescue operation that does not sleep. It's been run around the clock. Not only did Brazilian authorities tell us last night that they currently recovered 17 bodies. They said that they've seen many more in the water, and we expect those to be recovered in the coming hours.

(BEGIN VIDEOTAPE)

PENHAUL (voice-over): A radio crackles as pilots and ship captains calling coordinates. Far out into the Atlantic Ocean, Brazilian and French Navy ships began recovering the dead and debris from doomed Air France Flight 447.

This is search and rescue headquarters in Recife, northeast Brazil. Brazilian military officers are using computer charts to pinpoint the exact location of every new find.

"There's no doubt that all the debris we're finding belonged to this plane that crashed. There's no doubt all the bodies are from people on this flight," he says.

Video and photos taken by the Brazilian Navy show the scale of the recovery effort. Planes and boats are combing an area as big as the U.S. state of Nebraska or almost the size of Britain. It's more than 1,100 kilometers or 700 miles out in the Atlantic Ocean.

"There are currents, winds and tides that drag off debris, bodies and whatever is left of the plane," he says. The weather and waves make bringing the wreckage back to dry land more difficult.

Photos from Sunday show this Navy boat pulling debris aboard. Helicopters help with the heavy lifting. It's around the clock effort. Aircraft packed with electronic spotting equipment fly through the night.

As dawn breaks, military spotters scan the ocean for wreckage and bodies. Debris fields are marked with flares allowing the Navy to move in.

The Air France Airbus bound for Paris made its last radio contact with this air traffic control center in Recife Sunday night a week ago. Brazilian authorities say their priority now is recovering as many bodies as possible.

(END VIDEOTAPE)

PENHAUL: But it will be down to French investigators to piece together the wreckage and other clues to determine what brought down this Air France flight with 228 people aboard. So far foul play, lightning storms and sabotage have not been ruled out, John.

ROBERTS: Karl Penhaul for us this morning in Recife, Brazil with the very latest on Air France Flight 447. Karl, thanks so much.

Coming up at our next hour here in AMERICAN MORNING, we're going to be talking with the pilot of Airbus 320. He's also simulated on the Airbus 330. We'll talk to him about what he thinks might have possibly brought that plane down.

It's 15 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News in the Morning. And a quick look now at the a.m. rundown and the stories that we'll be breaking down for you in the next 15 minutes.

Champagne wishes come true. America's newest Powerball multimillionaire is a 23-year-old from South Dakota. What he plans to do with his $232 million jackpot.

Plus, stimulating the stimulus, the president's $787 billion economic recovery program has been in the books for weeks now, but where are all the jobs that it was supposed to create?

And hitting the town first family style. Michelle Obama and her daughters take to the streets of Paris. We'll show you the pictures that still have people buzzing this morning.

Thank heaven for little girls. They grow up in the most delightful way.

CHETRY: Yes, and especially how exciting, a trip to Paris with the family.

ROBERTS: Exactly.

CHETRY: Wow. Well, all right, also this morning, gas prices up this morning. National average is now $2.61 a gallon. And a lot of people talking and calling our show hotline 877-MY-AMFIX. Let's listen to a few of these calls.

(BEGIN VIDEO CLIP)

CALLER: You see a lot of stores they cut the price to help the economy out. Why does the gas company keeps raising their prices left and right?

CALLER: I just want to let the president know that the price of gas is hurting a lot of American workers. I realize he's focusing on health care, but the price of gas is just getting out of control and it's hurting everybody.

CALLER: I'm just wondering why the gas prices are starting to take a giant leap again. Nobody is talking about oil and gas. What's going on?

(END VIDEO CLIP)

CHETRY: A lot of us actually are wondering that. We brought Christine Romans. She's "Minding Your Business" this morning.

Because the economists before Memorial Day...

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right.

CHETRY: ... were telling you, a lot of them were saying you're not going to see it top $2.50, $3. ROMANS: They were saying, "Don't worry." They were saying again and again, "Don't worry because demand is not increasing." But this is what's happening here. And guys, this is pretty interesting stuff.

Because of the bailout and now concern in global markets about how much money the United States is borrowing and spending, it's weakening the dollar. And as the dollar weakens, people are concerned about inflation. And the hedge against inflation is commodities.

And so you're seeing money flowing into crude oil because of concerns about the dollar and the future of this country. So even though you have demand down, we have a recession, we're using less oil, oil prices are rising.

On Friday, they got to $70. Goldman Sachs has raised its target to $85 for a barrel of crude. And so we have seen gas prices, which, of course, are made from crude oil. We've seen gas prices up 50 percent so far this year.

And again, just a couple weeks ago, a lot of economists and people who track this were telling me don't worry, don't worry, it won't hit $3 a gallon. And frankly, very quickly these prices outstrip what the government thought its peak would be for the summer. And you are seeing still money flowing into oil markets because of -- another thing to blame the bailouts for, frankly.

ROBERTS: So who to believe, who to believe, who to believe.

CHETRY: The bright side is maybe that all of these pronouncements of how terrible things are maybe won't come to fruition either.

ROMANS: True.

CHETRY: Meaning that it's hard to predict behavior and it's hard to predict how things will go for the better or for the worse.

ROMANS: True. That's right. But we do know that the trend right now is the money is flowing into commodities. It's flowing out of the dollar and that is hurting the price you pay at the pump.

CHETRY: All right. Well, time now for "Romans' Numeral." And this is a number that we bring you every day, a number driving a story about your money. So what is today's "Romans' Numeral"?

ROMANS: The number is 18. And it is $18. And this is how much more you're paying to fill up your gas tank this year from the beginning of the year to now.

CHETRY: Every time?

ROMANS: Every time. So they're 18 bucks now. Put this in perspective, the increased cost of filling up your car this year because of higher gas prices.

Now, it's still much less than it was last year. I want to point that out. But keep in mind that takes away pretty much the president's Making Work Pay tax cut.

CHETRY: Right. And if you fill up three times a week, you know, you're almost at $60.

ROMANS: That's right.

CHETRY: 240 bucks a month.

ROMANS: It pretty much negates that tax cut. This is supposed to be -- so this is why people will get concerned about higher gas prices if they could put a dampening effect on the recovery.

ROBERTS: But here in New York City, gas prices have quietly cracked three bucks.

ROMANS: Oh, have they in New York? Wow.

ROBERTS: Yes. Back up to not where they were this time last year but certainly on the rise.

ROMANS: Again, much better than last year. Last year crude oil was $125 a barrel. Right now, it's 70 but still, gosh, when it moves so quickly it hurts. You can feel it.

ROBERTS: Christine, thanks so much.

ROMANS: Sure.

ROBERTS: Christine Romans "Minding Your Business" this morning.

It's a story that people are still talking about today. A down-on- his-luck cowboy hitting it big, winning the $232 million Powerball jackpot.

Twenty-three-year-old Neal Wanless, a South Dakota rancher now has some fat saddlebags to go with that cowboy hat. He'll take home $88.5 million in a lump sum payment after taxes.

Wanless had his trailer repossessed. His family owed thousands of dollars in back taxes. The lucky cowboy says he plans to repay the community "many times over for helping his family through some tough times."

The win just cracks the top ten of the biggest Powerball wins. Here's more for you in an "AM Extra."

The biggest jackpot was $365 million won three years ago by eight workers at a meat processing plant in Nebraska. The West family in Oregon won a $340 million jackpot in 2005. And Andrew Whittaker (ph) of West Virginia took a $315 million pot home back in 2002.

CHETRY: Sometimes you think oh, you've got it made. You won millions and millions and dollars. Things didn't work out so well for him and his family. They ended up in trouble afterward. I mean, sometimes it's a curse. ROMANS: That's right. This guy has got a lot of people giving him financial advice right now. If I were him, I'd sit back, put much in the bank and just wait.

ROBERTS: Yes. A lot of people probably calling up to say, "Hey, remember, I lent you 25 bucks."

CHETRY: Exactly.

ROBERTS: Well, with interest and penalties that's now --

CHETRY: Poor guy.

ROBERTS: Yes.

CHETRY: Well, he's got $88 million. Invest it and save it and good luck.

ROMANS: Wow.

ROBERTS: Twenty-four minutes now after the hour. Stay with us.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the "Most News in the Morning." Twenty-six minutes past the hour now.

Start spending. That's expected to be the message today when President Obama brings his cabinet together. After all that talk of shovel-ready projects, the Congressional Budget Office says only about three percent of the $787 billion recovery plan has actually been spent so far.

CNN's Jim Acosta is still in Washington. Why did I say still? You've been there working this story.

JIM ACOSTA, CNN CORRESPONDENT: I'll be here all day.

CHETRY: Yes, exactly. This is something that the vice president was talking about as well and we pointed it on the show. Why has this been such a slow start to spending this stimulus money?

ACOSTA: Well, it takes money -- it takes time to get this much money out the door, Kiran. And they want to get more of it out much faster than what they are currently doing right now.

And, you know, this morning, the president and the vice president will be meeting with the cabinet to talk about ways to accelerate the flow of stimulus funds into government projects. In other words, it's time to stimulate the stimulus.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): It's a caution sign on the road to recovery. The White House warns the stimulus, like the program's highway projects, is a work in progress. When the president signed the Recovery and Reinvestment Act, he vowed the $787 billion program would save or create three and a half million jobs. So far, the administration says the program has saved or created just 150,000 jobs in its first 100 days. That's fewer than the 345,000 job losses in May alone, which is why Vice President Biden says the White House is looking at new ways to get a better bang for its buck.

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: We will not be satisfied until we're adding jobs on a monthly basis.

ACOSTA: House Republicans who never supported the stimulus are all but saying, "I told you so."

REP. JOHN BOEHNER (R), HOUSE MINORITY LEADER: While the president is trying to convince us the plan is working and that more jobs are being created, it's clear we're continuing to lose an awful lot of jobs.

ACOSTA: After all of that talk about shovel-ready projects, the Recovery Act's own Web site shows the Transportation Department actually ranks fourth in stimulus spending so far. Education comes in first.

CHRIS WHATLEY, COUNCIL OF STATE GOVERNMENTS: I think that if you were to poll all of America, they would probably think that there's $800 billion worth of asphalt in the Recovery Act.

ACOSTA: As stimulus supporters point out, much of the money is going to save the job of teachers.

WHATLEY: States are facing their worst revenue shortfall that they've ever faced. And when states hit the wall on tax collections, they make stark choices. They lay off teachers. They furlough prisons.

These are things that have an immediate impact in the lives of communities. And states are still facing very tough choices. But without the Recovery Act they would be in dire situations.

ACOSTA: There would be more layoffs of teachers and police officers.

WHATLEY: Without doubt.

ACOSTA: The administration predicts job creation will come next.

DAVID AXELROD, WHITE HOUSE SENIOR POLITICAL ADVISER: The president said it was going to take some time for it to filter through the system and that employment was the last thing that was going to respond.

ACOSTA: But by then, stimulus critics argue the economy would be staging a comeback.

PETER MORICI, ECONOMIST: Yet economists were forecasting all along that the economy would come out by the end of the year. So you can't have it both ways. If you rely on economists, then why did he not rely on their projections.

(END VIDEOTAPE) ACOSTA: And there is still plenty of pressure on the White House to show results. The nation's jobless rate stands at 9.4 percent, inching closer to what most political experts agree is dangerous political territory, double digit unemployment -- Kiran.

CHETRY: Yes, not even political territory but just how difficult it is for many who are still looking for jobs. Jim Acosta for us, thanks so much.

ACOSTA: You bet.

CHETRY: And we have an interesting interview coming up, by the way. We're going to be talking about stimulus spending with South Carolina's Republican Governor Mark Sanford in our next hour. He didn't want the money to the tune of hundreds of millions of dollars even though his state ranks third in terms of unemployment. We're going to ask him why. He's coming up at 7:30 Eastern Time -- John.

ROBERTS: Crossing the half hour now and here's a check of the top stories this morning.

Alaska Governor Sarah Palin hitting back at charges that portions of a recent speech were largely lifted from an article co-written by Newt Gingrich. Journalist Geoffrey Dunn (ph) cites as least nine examples where he says Palin's remarks appear to be pulled from the four-year- old article. Palin's lawyer says she gave proper credit to the former House speaker.

And over the weekend, Palin proved she still got it. More than 20,000 people lined the streets to see Palin lead the parade through downtown Auburn, New York.

A rush hour bombing in Baghdad kills at least seven people and injures at least two dozen others. The bomb was attached to a mini bus and exploded this morning in a mainly Shiite area. The blast is a grim reminder of the challenge facing Iraqi forces with U.S. troops scheduled to withdraw from Iraq cities by the 30th of this month.

Deal or no deal? The U.S. Supreme Court expected to decide today whether a group of Chrysler shareholders can continue attempts to block Chrysler's sale to Fiat. Three Indiana state pension funds filed an emergency appeal over the weekend. They're asking the high court to put the brakes on the proposed sale. They want more compensation for their share of Chrysler's nearly $7 billion in secured debt.

Back to our breaking news this morning. This morning, a verdict for the two American journalists being tried in North Korea. Overnight, Laura Ling and Euna Lee were sentenced to up to 12 years of hard labor by Pyongyang's highest court. The women say they were covering the flight of defectors along North Korea's border with China when they were taken into custody. That was back in March. But North Korea says they were spying and found them guilty of, quote, "grave crimes" against the secretive state.

CNN's Zain Verjee is live for us in London this morning. Zain, you cover the State Department. What are you hearing about all of this, this morning?

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, some pretty swift reaction from the United States, John. The State Department, shortly after we got the verdict, issued this comment and said, "We are deeply concerned by the reported sentencing of the two American citizen journalists by North Korean authorities, and we are engaged through all possible channels to secure their release." "We once again," it went on to say, "urged North Korea to grant the immediate release of two American citizen journalists on humanitarian grounds."

John, they got a longer than expected sentence. Many analysts were saying that even by North Korean standards, this was pretty dire.

John?

ROBERTS: Many people, I guess, are wondering, Zain, if they're being made an example of or if they're being held as a bargaining chip. You've been following the story, following it overnight for your show on CNN International. When we talk about this idea of being sentenced to 12 years of hard labor, what does that exactly mean?

VERJEE: Well, it's not clear. We don't know so much about what goes on inside North Korea. But there are two schools of thought here. One is that they do go to some Stalin-like gulag that has gross human rights abuses and are at a hard-labor camp.

But also when you look at the wording of the statement they talk of prison camp. So, it's unclear, too, whether they mean they just go to a prison-like situation and do some labor. But it's really a question of interpreting and reading, which is very difficult to do with North Koreans.

ROBERTS: We're going to be talking with New Mexico Governor Bill Richardson coming up in our 8:00 hour here on AMERICAN MORNING. And, you know, you wonder, could he be potentially involved in this. He helped get people out of North Korea in 1994 and 1996. Does there appear to be any opportunity for diplomacy in all of this?

VERJEE: Many analysts are saying yes. Bill Richardson's name has been floated around. And so is Al Gore because he owns Current TV, which is the network that the two journalists were working for. What they're saying is that this does open the door for a humanitarian mission where a high-level U.S. envoy goes over and makes the appropriate token apology and hopefully that will trigger a release.

But they can also go there and reinforce President Obama's message that could have been lost when North Korea tested a nuclear device and fired off some missiles. So it really does create an opening there for something like that to happen as well as allows the U.S. to communicate with the North Koreans without losing face or looking as though they're bowing to pressure on the nuclear issue.

John? ROBERTS: I tell you, it's got to be pretty frightening for Laura and Euna to be sentenced to 12 years of labor camp.

Zain Verjee for us in London this morning. Zain, thanks so much for that.

CHETRY: Well, it wasn't all business when the president went to Europe. He had a chance to hang out a little bit in Paris with his family. So we're going to see some pictures and we're going to talk a little bit more about that with the staff writer from the "Washington Post" who covers Michelle Obama.

Also a bit of a shake-up in Michelle Obama's staff. More on that.

Thirty-five minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. Thirty- eight minutes past the hour now.

President Obama's trip to the Middle East and Europe was marked by big speeches, a lot of solemn events but it ended with some family playtime, a whirlwind tour of Paris. America's First Family checked out some of the sites in the "city of lights." The downtime had the president in a reflective mood. Here's what he said about it.

(BEGIN VIDEO CLIP)

OBAMA: I would love nothing more than to have a leisurely week in Paris, stroll down the Seine, take my wife out to a nice meal, have a picnic in Luxembourg Gardens. Those days are over, for the moment.

(END VIDEO CLIP)

CHETRY: Robin Givhan covers the Obama family for "The Washington Post." She joins us now from Washington.

Robin, good to see you this morning.

ROBIN GIVHAN, STAFF WRITER, "THE WASHINGTON POST": Nice to be here.

(CROSSTALK)

CHETRY: What was it like? I mean, you know, there's not a lot of downtime, but when the first family gets a chance, they certainly seem to take advantage. So how were they received and what was it like for them in Paris?

GIVHAN: Well, they both seem to be received like rock stars. And I think a huge part of that has to do with the fact that despite all the trapping of the office and all the security, there's still a sense of accessibility to them. And there's a sense that, you know, they're not just interested in sort of the policy of politics, but they're also interested in culture and the people. And they're really out there sort of being tourists and representing the American public in a very sort of mass and normal kind of way.

CHETRY: We saw the striking pictures of the first couple as well as France's first couple. And you remember back to those frosty relations between then President George Bush and then president of France, Jacques Chirac. Seems like now that we have the Obamas and the Sarkozys, it's a totally different relationship. Speak of that a little bit.

GIVHAN: Well, it is really striking. And, I mean, I think some of it does come from just completely different personalities and also very different times. But, I mean, I do think that some of it has to do with the fact that, you know, the Obamas have made it very clear that they want to be perceived as citizens of the world. And they've really opened themselves up to that kind of sensibility, and they've shown a real curiosity for exploring other cultures and being able to sort of immerse themselves in whatever city they happen to be in, and the same way they have done that with Washington.

CHETRY: And, in fact, we're seeing some of the pictures right now. You see the first lady getting some time with the girls. They went shopping. They had a chance to visit the Eiffel Tower. They really had a chance to enjoy themselves.

Meantime back at home, there was a bit of a shake-up, though, in Michelle Obama's staff. Announced that she's replacing chief of staff Jackie Norris with longtime Chicago friend Susan Sher.

Now, everything appeared to be going so smoothly for Michelle Obama. She's got incredible approval ratings, up in the high 70s. Do we know anything about what went wrong with this -- was this a personal fallout?

GIVHAN: You know, I haven't heard that there's that any kind of what you call fallout. What I think is interesting is that the relationship between Mrs. Obama and Jackie Norris really goes back to Iowa, and it seemed to be predicated to a great degree on their relationship as mothers.

And her relationship with Susan Sher seems to really have grown out of a more professional and career-driven encounter. That goes all the way back to Chicago. But, you know, as you said, what's particularly interesting is that on the surface, it seems that everything was going very smoothly. So, you have to assume that it was something that really didn't have anything to do with the way the message was being driven home.

CHETRY: All right. Robin Givhan, staff writer with "The Washington Post" covering the Obamas. Great to talk to you this morning. Thanks for being with us.

John?

(COMMERCIAL BREAK)

ROBERTS: We're back with the Most News in the Morning. It's 45 minutes after the hour. And let's fast forward to some of the stories that will be making news later on today.

Supreme Court nominee Judge Sonia Sotomayor will be back on Capitol Hill this week for another round of courtesy calls with key senators. At 5:00 Eastern, she meets with New Hampshire Democrat Jeanne Shaheen.

At 10:00 a.m. Eastern, the National Transportation Safety Board begins a three-day hearing on US Airways Flight 1549. It crash landed, you remember, in the Hudson earlier this year after a flock of birds caused the plane to lose power in both engines. Scientists at the Smithsonian have examined the feather remains from the incident, part of an effort to reduce the risk of bird strikes, believed that they were Canada geese that hit that plane.

And Apple is at it again. After fueling weeks of speculation, this afternoon at 1:00 Eastern, the company will unveil its latest gadgets. Among the rumors, a new iPhone and a touch screen tablet computer. And also lighting up the blogs, speculation of whether Steve Jobs, who has been on medical leave, will make an appearance there.

CHETRY: All right. Well, meanwhile, it is almost 46 minutes past the hour. We have Rob Marciano here in New York, fresh off of a little golf outing in Vermont.

ROBERTS: She just gave away the story.

ROB MARCIANO, AMS METEOROLOGIST: Yes, breaking news. It's a good thing I didn't strive to be a professional golfer. I'm just starving at this moment.

CHETRY: You know what? You guys just do it for the joy, right?

ROBERTS: The camaraderie.

MARCIANO: Exactly.

Morning, John. Morning, Kiran.

CHETRY: Meanwhile, these tornado pictures in Colorado -- unbelievable.

MARCIANO: Yes.

CHETRY: They really got some rough weather there.

(WEATHER REPORT)

CHETRY: No threat for a hole-in-one from you either, right?

MARCIANO: Not in the near future.

ROBERTS: Golf courses across the land with Rob Marciano.

Rob, good to see you in New York this morning.

Forty-eight minutes after the hour. (COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News in the Morning. A live look at the Capitol building in Washington, D.C., where it's 66 degrees right now, going up to 85. Thunderstorms in the forecast. But the weather might be better than most of the weekend where there were lots of rain.

Welcome back to the Most News in the Morning.

President Obama back home, ready to tackle some major domestic issues, but his trip to the Middle East and Europe certainly generated lots of buzz on the Sunday talk show circuit. CNN's John King is looking at that for us this morning.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (on camera): The sound of Sunday is already part of Monday's water cooler conversation. The president's overseas trip dominated much of the discussion, including his push to revive the Israeli-Palestinian peace process and nudge Israel's fragile government to take the risk and free settlements.

(BEGIN VIDEO CLIP)

DAVID AXELROD, SENIOR ADVISER TO PRESIDENT OBAMA: We want to get them back talking to each other. It's laden with difficulties. And he understands the politics. But the stakes are so enormous.

(END VIDEO CLIP)

KING: Home now, Mr. Obama faces rising unemployment. We spoke to three mayor in towns where General Motors is closing or idling plants who say the recession is forcing them to make tough choices.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BROWN EAST LANSING, MICHIGAN: This isn't just about the auto industry, you know.

MAYOR JAMES BAKER, WILMINGTON, DELAWARE: We're all suffering. We're all trying to deal with loss of revenues.

MAYOR MICHAEL DINWIDDIE, NASHVILLE, TENNESSEE: I think the worst thing that we could possibly do is turn this into a political battle.

(END VIDEO CLIP)

KING: And just down the road, big debates over how to pay for health care reform, and the nomination of Judge Sonia Sotomayor to the Supreme Court.

(BEGIN VIDEO CLIP)

SEN. RICHARD SHELBY (R), ALABAMA: It will be the first step in destroying the best health care system the world has ever known.

ERIC SCHMIDT, CHAIRMAN CEO, GOOGLE: You won't fundamentally solve the problems in business until you solve the problem of spiraling health care costs, which is driving everybody crazy.

NEWT GINGRICH (R), FORMER HOUSE SPEAKER: Putting white male where she had Latina, and that person frankly would be disqualified from the court.

AXELROD: I think those who oppose her nomination would like to create a side debate by taking her words out of context.

(END VIDEO CLIP)

KING: And flash back, remember that ad Hillary Clinton run during the Democratic primaries about who voters wanted to have answering a 3:00 a.m. phone call at the White House? Well, she was asked if she thinks her former opponent, now the president and her boss, is qualified now.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, U.S. SECRETARY OF STATE: The president in his public actions and demeanor, and certainly in private with me and with the national security team, has been strong, thoughtful, decisive. I think he's doing a terrific job. And it's an honor to serve with him.

(END VIDEO CLIP)

KING: The small sampling there of the sounds of Sunday will shape the week ahead.

Back to you guys in New York.

(END VIDEOTAPE)

ROBERTS: All right. John King for us this morning.

You heard Judge Sotomayor mentioned in John's piece. And with the nomination of the first Latina for the Supreme Court, we want to remind you that coming up in October, CNN is going to take a comprehensive look at how Latinos are helping to reshape America from politics and business to our schools and neighborhoods. LATINO IN AMERICA, coming your way in October, here on CNN.

CHETRY: Well, she may be a controversial figure in the GOP but Alaska Governor Sarah Palin sure knows how to still draw a crowd. She was in New York this week. We're going to tell you why, coming up. Fifty-three minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning.

From Wasilla, Alaska to the city that never sleeps, Governor Sarah Palin was all over New York State over the weekend. She was raising money for charity and also raising some buzz at the same time about 2012. She drew a crowd of 20,000 people in Upstate New York. Many chanting, "Run, Sarah, run." Later she signed baseballs for fans at Yankee Stadium. She took a few swings of her own, though. But not at the ball, at the Obama administration along the way.

Our Mary Snow is here now.

Did the governor start raising speculation? But this happens every time she appears somewhere, about her political ambitions beyond Alaska.

MARY SNOW, CNN GENERAL ASSIGNMENT CORRESPONDENT: Certainly gets a lot of attention, Kiran. Even though this was filled with low key events. Seven months after her failed Republican vice presidential bid ended, a trip like this stirs the guessing game about whether she's gearing up for round two on the national political stage.

(BEGIN VIDEOTAPE)

SNOW (voice-over): She traveled thousands of miles to mark a page in Alaska's past. Governor Sarah Palin paid tribute in Upstate New York to William Stewart, who negotiated the purchase of her home state in 1867. But it was her political future that became a focus in the crowds. And she made clear she's watching Washington.

GOV. SARAH PALIN (R), ALASKA: We know decisions being made lately we believe are not in the nation's best interest.

SNOW: And Palin took aim at the Obama administration over proposed cuts to Alaska's missile defense network.

PALIN: Reducing Alaska's defense readiness in these careless times is a show of weakness. It's not a sign of strength.

SNOW: Palin's political action committee paid for her New York trip that took her to a Yankee's game with fellow Republican Rudy Giuliani, an autism walk and a fund-raiser for an organization dedicated to the disable, where Palin talked about her 1-year-old son, Trigg, who has Down Syndrome.

PALIN: Just because our ticket placed second, second out of two, you still have an advocate for the cause.

SNOW: She took no questions from reporters, but at least one New York Republican is reading into her trip.

REP. PETER KING (R), NEW YORK: I think she's touching the water. That's just my own opinion. I think she wants to get the feel for how it is out there.

SNOW: A recent CNN Opinion Research Corporation Poll shows in a hypothetical Republican presidential race in 2012 she's virtually tied with Mike Huckabee and Mitt Romney. Palin says Republican Congressman Peter King will have to overcome unfavorables and filling gaps such as foreign policy. But he says he's urged her to get out there.

P. KING: She has star quality. And not many people in our party have it today.

(END VIDEOTAPE)

SNOW: After leaving New York, she was on to Washington for staff meetings. Still a question, though, is whether she'll attend a big fund-raiser tonight in D.C. for congressional Republicans.

Over the weekend, there was a behind-the-scenes drama between her camp and organizers about whether she would speak. She will not. But, Kiran, sure, we'll be hearing more about it today.

CHETRY: How did she like the Yankees game? Was she hanging out with the Giulianis?

SNOW: Yes, and she said we won. After a weekend in New York, she feels like a New Yorker.

ROBERTS: Doesn't take long, does it?

CHETRY: There you go.

All right. Thanks, Mary.

SNOW: Sure.

CHETRY: Well, welcome once again. Glad you're with us on this Monday. It is June 8th, I'm Kiran Chetry.

ROBERTS: And good morning to you. I'm John Roberts. Breaking news to tell you about right off the top here this morning. American journalists Euna Lee and Laura Ling, convicted of, quote, "grave crimes" and sentenced to a dozen years of hard labor in North Korea. Washington now demanding the communist nation released both women. The State Department says it is deeply concerned, and is working right now to try to get them home.

The news comes as the Obama administration warns it is considering placing Pyongyang back on the list of state that sponsored terrorism. Secretary of State Hillary Clinton calling North Korea's recent nuclear provocations very dangerous for the region and the world. We're following developments live at the White House for you this morning.

And new developments in the crash of Air France flight 447. The Brazilian Air Force says it has spotted more bodies floating in the ocean. Seventeen were recovered over the weekend. And investigators now focusing on jet's air speed sensors as they try to find out what brought the plane down.

In 10 minutes time, Captain Johncox joins us. He's an expert on air safeties, also flown Airbuses. He's going to tell us if the sensors could be to blame.

But we begin this morning with breaking news. Two Americans on trial deep inside North Korea now facing 12 years of hard labor. Overnight Pyongyang's top court found television journalists Euna Lee and Laura Ling guilty of, quote, "grave crimes" against the Korean nation. The two women accused of spying when they were detained back in March.

CNN's Jason Carroll is here with brand new developments. Elaine Quijano is live at the White House where Washington is now pressing for the two journalists' release.

Let's start with Jason. What's the latest for us there, Jason?

CARROLL: Well, this is not entirely unexpected but a big disappointment for the families of both that are involved here.

North Korea's state-run media is reporting the country's high court has sentenced the American journalists to 12 years of reform through labor. That means Laura Ling and Euna Lee's sentence will be served at a labor camp for what the court is calling a grave crime committed against the Korean nation for their "illegal border crossing."

And just in to CNN this morning, the State Department is responding saying, "We are deeply concerned by the reported sentencing of the two American citizen journalists by North Korean authorities, and we are engaged through all possible channels to secure their release. We once again urge North Korea to grant the immediate release of the two American citizen journalists on humanitarian grounds."

Ling and Lee were working on a report about North Koreans fleeing the country when they were detained by soldiers patrolling the border between China and North Korea. They were working for Current TV, a media company co-founded by former Vice President Al Gore.

U.S. Secretary of State Hillary Clinton called the charges "baseless" and demanded their release. And just before the sentencing, Laura Ling's sister, Lisa, spoke about her sister at a commencement speech in San Diego.

(BEGIN VIDEO CLIP)

LING: Quite honestly, the story that my sister went to do wasn't one that we were that concerned about because they had no intention when they left the United States to cross into North Korea. My sister is an amazing journalist and she's very passionate about what she does.

Yes, she's -- I mean, she is a good person who wanted to tell a story and this unfortunate event has happened. And we just hope that she's OK and that she'll be returned home to us.

(END VIDEO CLIP)

CARROLL: And Lisa Ling's family as well as Euna Lee's family, they've been holding vigils to try and draw attention to the cause of these two young women. North Korean experts say the U.S. will continue back door negotiations. Several senior administration officials say the idea of sending Al Gore to help is under consideration. Also a possibility, sending New Mexico Governor Bill Richardson who has worked in the past to release people held in North Korea.

In the meantime, the Swedish ambassador will be working behind the scenes to help. And some North Korean experts still believe that there is room for negotiations here.

ROBERTS: Yes. Certainly there must be, because 12 years hard labor for what they're accused of doing, the crime wouldn't seem to fit the punishment.

CARROLL: Right. And there's also a theory that perhaps they'll use it as some sort of bargaining chip or something.

ROBERTS: Yes. Exactly that might be what's going on.

CARROLL: Yes.

ROBERTS: Jason, thanks so much.

Coming up in the next hour, by the way, we're going to be talking with New Mexico Governor Bill Richardson. He helped get, as Jason was saying, people out of North Korea. It was back in 1994 and 1996. We'll ask him whether he may get involved this time around, get his take on the best way to deal with the North Koreans. He's been consulting with the administration on all of this.