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American Morning
Obama Tackles Global Economy in G8 Summit; Obama Stimulus Under Fire From Republicans; New Details on the Condition of Michael Jackson's Body; Are Our Brains Hijacked by Fat, Sugar and Salt?; U.S. Concerns Over Lack of Afghan Force
Aired July 08, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: And welcome. Can't believe we're actually here this morning.
ALINA CHO, CNN CORRESPONDENT: Yes. You're back from Los Angeles.
Good morning, everybody. It is Wednesday, July 8. I'm Alina Cho. John Roberts has the week off. Nice to be sitting next to you again. You got back safe.
CHETRY: And at least we're not wearing the exact same sweater as we were yesterday.
CHO: Yes.
CHETRY: I'm Kiran Chetry. A lot going on this morning. We start with the president on his trip.
CHO: That's right. We are following several developing stories this morning. We're going to be breaking them down for you in the next 15 minutes.
First off, the G8 summit about to get under way in Italy. President Obama about to meet with leaders of the top global economies, but there could be a glitch.
The summit is being held at the site of recent deadly earthquakes. And there's even an evacuation plan in place in case there are more aftershocks. We are live in Italy for a preview.
CHETRY: And this morning, the White House playing defense and struggling to stay on message as Republicans slam the ongoing $787 billion stimulus bill calling it "a failure." Democrats though say they've only spent about $100 billion so far and if that's the case, why are they now talking about a second stimulus.
A lot of questions this morning and we're trying to answer some of them this morning from Washington.
CHO: That's right. And there are also some new details emerging from the investigation into Michael Jackson's death. What police investigators are telling CNN about the condition of Jackson's body.
And the most heart wrenching moment from the Jackson memorial. If you missed it, we are going to show you what Jackson's only daughter said about her father.
CHETRY: We begin with President Obama about to confront a world of economic pain. He just arrived in Italy for the G8 summit. And behind the pomp and circumstance, the president is expected to get an earful over the financial crisis. And with nothing less with the global economy at stake, the president's mission is to lead and to show that his plans to kick-start the economy can actually work.
CNN's Suzanne Malveaux is live in L'Aquila, Italy this morning. And, Suzanne, what's the president's goal here in terms of the American economy getting that on better footing?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Kiran, we got a pretty good sense of it yesterday, a preview if you will, in his remarks in Russia before a group of business people. He was talking about the need for transparency, for opening up trade, opening up markets, also corporate responsibility. And also one of the things that he has been pushing is the economic stimulus package.
He believes that using the money to stimulate the economy is the best way to turn things around despite the fact a lot of that money has yet to make it to the pipeline. So it is still kind of a wait and see, if you will, to see if that is the right prescription. But that is something that he's going to be talking about with the other world leaders. Other world leaders don't feel so secure about that. They're looking at tighter regulations.
So these are the kinds of things that the president is going to sit down in private meetings in group settings and try to come up with some sort of strategy so that when things do turn around for the U.S. economy and the world economy that we're not going to get ourselves in this type of crisis again -- Kiran.
CHETRY: And, Suzanne, as we've talked about before, Republicans are hammering away at the president about the economic stimulus putting some new ads out as well. What is the White House saying about the fact that a lot of the stimulus money still hasn't gotten out there where it was intended to go yet?
MALVEAUX: Well, Kiran, they're just simply saying wait and see, that you have to be patient about this. Only 15 percent of that money, the $787 billion economic stimulus package has really made its way through. But they're saying it is taking some time but that eventually this money will get used, that it will create the kinds of jobs that they're certainly hoping for.
And one of the things that they say is it's better that it happens slowly and responsibly than discovering that there's a kind of misuse and abuse and the kind of projects they're putting forth are not really worth the money and the time.
CHETRY: I want to ask you about where this is, L'Aquila. We remember this because this was the site of Italy's deadly earthquake earlier in the year. Why is it being held there?
MALVEAUX: Well, the leader, Italy's leader Berlusconi decided that he did not feel it's appropriate for them to have it at a resort spa, to have the world leaders come here. He wanted to show that there was progress that was being made.
There were nearly 300 people who lost their lives, about 50,000, Kiran, who are still homeless. He wants to show the world community that yes, they are making progress in restoring, trying to get people housed outside. But then they're also trying to raise serious money about $40 million or so from the international community in donations to try to help them out with the effort.
There was a sense that it wouldn't have been in good taste if these world leaders were seen as wining and dining at a resort while so many Italians are suffering. So there is a concern, though, you raised before, which is that the aftershocks that continue to happen.
There was one as recently as Friday. And we understand there is a contingency plan to fly these world leaders out of here, bring them back to Rome if necessary if you have an aftershock that's very, very powerful -- Kiran.
CHETRY: All right. Suzanne Malveaux for us in L'Aquila, Italy this morning. Thanks so much.
And we have some live pictures here we want to show you of the speaking that's going on right now. And this is Italy's president along with President Obama and they're speaking. We're going to be dipping in to some of that a little bit later in the morning. Thanks.
CHO: There are some mixed messages from the White House on turning around the U.S. economy. President Obama is taking some time out of his overseas trip to defend his $787 billion stimulus package.
Just three days ago, Vice President Joe Biden said the administration misread how bad the economy was. So with unemployment at its highest level in more than a quarter century, Republicans are pouncing.
CNN's Jim Acosta watching it all from Washington.
Hey, Jim, good morning to you. So what are those Republicans saying?
JIM ACOSTA, CNN CORRESPONDENT: Good morning, Alina. You know, the president is overseas so Republicans here in Washington believe they have found Mr. Obama's Achilles heel, the economy. Top GOP leaders are pointing to some recent conflicting statements coming out of the White House on the stimulus, asking once again whether it was the right approach to ending the recession.
(BEGIN VIDEOTAPE)
(BEGIN VIDEO CLIP, GOPLEADER.GOV)
NARRATOR: Where are the jobs? We put the dogs on the money trail to find out.
(END VIDEO CLIP)
ACOSTA (voice-over): In the latest sign the economy is in the doghouse, Republicans are sitting (ph) their bloodhounds on the stimulus with this video that asks, where are the jobs?
(BEGIN VIDEO CLIP)
REP. JOHN BOEHNER (R), MINORITY LEADER: I'm John Boehner. This is Ellie Mae (ph). She hasn't found any stimulus jobs yet and neither have the American people.
(END VIDEO CLIP)
ACOSTA: It's an issue that dogged the president all the way to Russia when Mr. Obama clarified statements made by his own vice president on the recession.
JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: There was a misreading of just how bad an economy we inherited.
ACOSTA: Not exactly according to the president.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I would actually, rather than say misread, we had incomplete information.
ACOSTA: Who still believes the stimulus was the right call.
OBAMA: There's nothing that we would have done differently.
ACOSTA: But Republicans point to President Obama's dire warnings back in February when he urged the Congress to pass the stimulus.
OBAMA: We're moving quickly because we're told that if we don't move quickly that the economy is going to keep on getting worse. We'll have another two or three or four million jobs lost this year.
ACOSTA: It turns out, even with the stimulus, the economy has shed 3.4 million jobs in just six months. And while the president says he's now open to a second stimulus, one of his top economic advisers is already calling for one.
Laura D'Andrea Tyson told an economic seminar in Singapore, we should be planning on a contingency basis for a second round of stimulus. Republicans say the White House can't get its story straight.
SEN. MITCH MCCONNELL (R), MINORITY LEADER: They said the stimulus was necessary to jump start the economy. Yet now with about a half a million jobs lost every single month, they've started to admit they simply misread the economy. These were costly mistakes and we can't take them back.
ACOSTA: Despite a rough couple of weeks for Republicans, GOP strategists see their own political green shoots of recovery on the economy. UNIDENTIFIED MALE: Nothing has really galvanized the Republican Party more than the stimulus bill. One thing that we've seen is that the president's popularity, while he's still popular throughout the nation, really is taking hits in key states.
(END VIDEOTAPE)
ACOSTA: And which states are we talking about? Try the key battleground of Ohio for one. That may explain why the White House is not alone in considering a second round of stimulus. Democratic leaders including the House majority leader and Congress are kicking around the idea of a sequel even though some in the party are clearly disappointed with the original -- Alina.
CHO: Jim Acosta live for us in Washington for us. Jim, thank you.
CHETRY: Well, still the beltway and the blogs buzzing this morning about Alaska Governor Sarah Palin's bombshell announcement that she's quitting before her term is up. There's also a new "USA Today"/Gallup poll suggesting that Palin's resignation has not hurt her. That, in fact, it improved her standing at least among Republicans.
Two-thirds want her to be a "major national political figure in the future." However, three-fourths of Democrats polled hope she won't be.
Meantime, Palin's surprise announcement still a major topic on our show hotline, 877-MY-AMFIX. Here's a little bit about what some of you were saying.
(BEGIN VIDEO CLIP)
ANONYMOUS (via telephone): I do believe that she is a good person, and I do believe that she has a bright future. I think she's very smart and I think she's doing the right thing for her.
RALPH (via telephone): I think Sarah Palin's resignation is one of the biggest blunders of political history.
ANONYMOUS (via telephone): I know what they don't like about Sarah Palin. It's her Christian values. But she has the values that the founding fathers have.
MR. TAYLOR (via telephone): Sarah Palin, careful what she's about to do. Don't be surprised. Talk show, book deal. She's about to help (ph) the world.
(END VIDEO CLIP)
CHETRY: All right. Well, we want to hear what you think about this story or anything else that's on your mind. Again, you can call our show hotline. It's 877-MY-AMFIX.
CHO: Nine minutes after the hour. Also new this morning, congressional Democrats are finally getting their wish.
Former White House senior adviser Karl Rove spoke yesterday to attorneys for the House Judiciary Committee. The panel first subpoenaed Rove back in 2007 as part of its investigation into the firing of nine U.S. attorneys. At the time, President Bush signed an executive privilege and refused to let them testify.
CHETRY: Also a new report out this morning reveals a stunning lapse in Homeland Security. The Government Accountability Office, GAO, saying that investigators were able to smuggle bomb-making materials past security at ten federal buildings.
Once inside, they managed to construct explosive devices and then carry them around the government buildings undetected. There are likely to be some tough questions about that GAO report at a Senate Homeland Security hearing today.
CHO: And some government agencies still suffering the effects of a July 4th cyber attack that knocked out numerous Web sites including those used to fight cyber crime. "The Associated Press" reports the Treasury Department, Secret Service, Federal Trade Commission, and Transportation Department Web sites all down at some point over the weekend and into this week.
South Korean officials say their government and private Web sites were hit too, and that the attacks may be connected.
Ten minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Twelve minutes after the hour. Welcome back to the "Most News in the Morning." It is, as I said, 13 minutes past.
New this morning, a dangerous situation unfolding as we speak. Here we go again.
Pirates have reportedly boarded a Turkish-owned ship off the coast of Somalia. Right now, no information on the condition of the 23-member crew. But the ship's owner says the vessel is still on course and heading for Jordan.
CHETRY: Iran's president, Mahmoud Ahmadinejad calling last month's disputed election "the most clean and free election in the world." He made the comments while addressing the nation yesterday. Ahmadinejad's re-election, of course, was followed by deadly protests and the arrest of more than 1,000 people.
CHO: And Texas billionaire T. Boone Pickens blowing off plans to build the world's largest wind farm in the Texas panhandle. Pickens has already ordered 687 giant wind turbines which can stand 400 feet tall. That's taller than most 30-story buildings.
Well, now, there's no place to put them in. His company is looking for other projects that could use some of the $2 billion worth of wind turbines they have on order. CHETRY: The day after being celebrated in words and music, Michael Jackson's death remains a mystery. His death certificate has been made public but the cause of death is still unknown. They're learning more though about the condition of Michael Jackson's body and what it could mean. CNN's Randi Kaye has that part of the story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: We have a gentleman here that needs help and he's not breathing.
RANDI KAYE, CNN CORRESPONDENT (voice-over): CNN has now learned disturbing new details about what precisely police investigators found when they answered the 911 call from Jackson's house 12 days ago.
UNIDENTIFIED MALE: No, he's not conscious, sir.
OPERATOR: OK.
KAYE (on camera): A source involved with the investigation tells us Jackson had "numerous track marks on his arms" and that those marks "could certainly be consistent with the regular IV use of a drug like Diprivan."
(voice-over): Diprivan is the powerful sedative commonly used in anesthesia in a hospital. A nurse who had worked for Jackson told CNN he had begged her for Diprivan a few months ago so he could sleep.
Our source cautioned investigators can't say right now if a Diprivan IV drip caused the track marks on Jackson's arms. Some of the marks, the sources said, appeared fresh, others, older. In fact, some of the newest marks could have been caused when emergency medical personnel rushed into the house and used their own IVs in an effort to save him.
The source would not confirm if Diprivan had been found with Jackson. But he told us numerous bottles of prescription medication had been found in Jackson's $100,000 a month rented mansion. He described them as "dangerous drugs," similar to those found in a hospital setting. That's as far as he would go.
(on camera): As for Jackson's body, the source said he had never seen anything like it in decades of investigative work. He described it as "lily-white from head to toe." Was it caused by the disease Jackson said he had? We don't know.
(voice-over): Another source with knowledge of the case described Jackson's body as having "paper white skin, as white as a white t-shirt." He also told me his scalp was bald, that the pop star had no hair. That may have been a result of injuries Jackson received when his hair caught fire while making this Pepsi ad years ago.
This source also said Jackson's veins were "collapsed" in both arms suggesting frequent intravenous drug use. His final note, the body was emaciated despite the vigor Jackson showed on stage during his final rehearsal just 36 hours earlier. Randi Kaye, CNN, Los Angeles.
(END VIDEOTAPE)
CHETRY: All right. Well, you know, there are so many emotional moments yesterday at the actual memorial. Quite surprising actually that, you know, we had known so long about Michael Jackson's death and had some time to digest it. But still parts of that ceremony just really gave me goose bumps.
CHO: Not only that, it left you speechless, really. You know, at the end of it, a lot of people were saying, a lot of journalists and just a lot of people who were there were saying there's just really never been anything like this and we don't know if there will ever be anything like this again.
CHETRY: A lot of people say this was a once in a lifetime.
CHO: Yes, it really was.
CHETRY: The type of performer and type of person and the ceremony as well.
CHO: Yes, that's right. You know -- I mean, there were so many emotional moments as you said. But a lot of people agree this morning that none really was more heart wrenching than when Jackson's 11-year- old daughter said goodbye. It's the first time really that any of us have even heard from the Jackson children. Watch.
(BEGIN VIDEO CLIP)
PARIS JACKSON, MICHAEL JACKSON'S DAUGHTER: Ever since I was born, daddy has been the best father you could ever imagine. And I just want to say I love him so much.
(END VIDEO CLIP)
CHO: Just tore your heart out to see that, really. I mean, and just to close the ceremony. You know, but those memorable moments that we talked about, you know, really, there were so many. One thing that really stood out to me was when Usher spoke or saying "Gone Too Soon" and he went and he went right up and touched the casket.
And then there were moments of levity too. You know, Smokey Robinson came up and they played a song and he said, you know, I wrote that song. I thought I sang it. But, you know, and so -- but it's just really was something. It was a moment in history, really was something to see.
CHETRY: Yes. And, you know --
CHO: And you were there for a while.
CHETRY: Yes. And I just -- a lot of people as you said had never seen the Jackson children without either --
CHO: A veil.
CHETRY: A veil and heard from them and they're beautiful adorable little children that now are facing life without their parents, really.
CHO: That's right.
CHETRY: And so -- and they're going to need the love of their family around them and hopefully they're going to have that. But that really broke your heart for sure.
Nineteen minutes after the hour. Much more ahead. We'll be right back.
(COMMERCIAL BREAK)
CHETRY: Well, it is a special day especially if you're into numbers, you know, because -- well, Christine did a number. That's her job. She gives us the "Romans' Numeral" every day which is a number that drives the story about your money.
And that's something you'll remember we're talking about today. Check this out.
It is July 8, 2009. Right? So it's 7, 8, 9. So at 12:34:56 this afternoon, if you put the time next to the date, you'll get the straight number sequence. 1, 2, 3, 4, 5, 6, 7, 8, 9.
What do numerologists say about that? They say that this second of perfection, they say that it could be a very good day to make money.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hey, I like that.
CHETRY: How about that? You didn't even have to call, you know, Miss Cleo.
ROMANS: Is it a good day to spend money?
CHO: I'd be a contrarian. I don't know.
CHETRY: You don't care?
CHO: It's not I don't care. It's interesting. I didn't know that.
ROMANS: It is fun with numbers. That's for sure.
Fun with numbers off of the stimulus. I've been tracking sort of a reality check on the stimulus spending because this is starting to be a big political fight where people who say, look, the money is not going -- there's a lot of different ways people are fighting about the stimulus money.
Some people want more stimulus. They want another stimulus already. Some people say they want the money spent faster and then there are people having tea parties all over the country who say, hey, you're borrowing money. You're spending money that we shouldn't be spending this way.
So let's just take a look at where this stimulus money has gone. You know, it's a little complicated because there's stimulus projects spending and that's what I'm focusing on right here. About $499 billion has been allocated. Another $157 billion is available but spent $56.3 billion.
And Senate Majority Leader Harry Reid says overall, just about slightly over 10 percent of the stimulus money has been given out for the places he says that it needs to go. So a little less than 90 percent less is still being spent.
There's some tax relief that you've already started to feel in your paychecks starting in May, and there's also some relief in terms of jobless benefit extensions and food stamps and that kind of thing. But the fight here is about job creation because the White House said it would save or create 750,000 jobs by August.
Now, I have said this a thousand times. It is so difficult, and I'm going to say it's almost impossible to verify how you have saved or how many jobs you have saved.
CHO: Yes.
ROMANS: Because we're just watching all of these jobs disappear. But the White House did say that they would -- passing the stimulus would help prevent the jobless rate from going above eight percent. We know it's already done that. It's above 9.5 percent.
So this is what the fight is about. How much money has been spent? Should more be going out the door more quickly?
There are Democrats who say they want to see things moving more quickly. But remember this was meant to be time released. It was meant to be 70 percent of it out the door by September, 2010. That's a year away from now.
CHO: So they're on track?
ROMANS: A lot of people are telling me they might be slightly behind track. But they didn't anticipate that there'd be these many jobs lost and that's what make people say, wait, does this mean it was -- we thought that we wouldn't see this kind of bad job loss if you did have the stimulus.
The White House says it would be worse without the recovery act, which is the name for the stimulus. It would be worse without it and so that it is helping to save jobs. Very difficult to verify.
Now, there's a congressional committee that may have found that 21,000 highway jobs have been made -- so created. So 21,000 highway jobs. But remember, we're losing jobs every single day over and over and over again. CHETRY: And as you know, and you said before, it's how people feel. It's how you feel at home. I mean, you can crunch all the numbers you want to crunch. If you're out of a job, it doesn't feel like the stimulus is working for you.
ROMANS: It's true. And I'm going to talk a little bit more about the second stimulus next hour. But look, this is already the second stimulus. We had a stimulus last year, remember? $168 billion. It's about $1 trillion that's been committed to the economy just over the past year, year and a half. So this is the second stimulus. And we're still losing off a lot of jobs.
CHETRY: What's your numeral?
ROMANS: The numeral is six. And it has to do with like job loss and it has to do with why this is all so important, kitchen table economics because people talk about it. They hear us talking about.
CHO: Such a small number, Christine.
ROMANS: It is a small number. It means -- it's the number of job seekers for every job opening in America.
So, boys and girls, that's your competition out there. And this is why people at home are looking at the stimulus.
CHO: Seems like a big number now.
ROMANS: Yes. The people looking at the stimulus saying, you know, where's my bailout? Where is the stimulus that's supposed to be America's bailout? And there are six job seekers for every job opening. So it's a difficult situation to navigate politically and economically for the White House.
CHETRY: All right. Well, their dad is overseas at the G8 summit but it's Sasha and Malia Obama that are generating a lot of the buzz as they travel with their mom. We're going to have more on that.
Twenty-six minutes after the hour.
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): This is the view of the world from outside your body as seen in the movie "Ghost."
Swedish researchers are creating a similar experience in their lab.
UNIDENTIFIED FEMALE: And you close your eyes.
TUCHMAN: Using 3-D goggles and cameras, researchers enable participants to see themselves from above or even feel like they are the dummy in this room.
HENRIK EHRSSON, KAROLINSKA INSTITUTET: It's quite amazing. You've been within your body for all your life and you think the brain should know what your body looks like.
But then you have ten seconds, it can completely re-evaluate the situation and accept the body of a different individual or different gender even.
TUCHMAN: So how does it work? First, the subject wears a head mounted video unit then researchers play video they want the person to see. When she looks down, this is what her eyes see. The researcher then touches her body and the dummy simultaneously. With this, the test subject's brain makes a connection and presto, she's the dummy. To test the connection, the dummy is cut with the knife and the test subject reacts.
UNIDENTIFIED FEMALE: It feels like when you tried to slice me, and I felt my stomach.
UNIDENTIFIED MALE: So you've experienced being a plastic man.
UNIDENTIFIED FEMALE: Yes.
TUCHMAN: Ehrsson said the possibilities are endless. Cameras could show how you appear to others and help improve low self-esteem. Amputees could use the therapy to give their new prosthetic limb a sense of feeling.
EHRSSON: I think you have a new body, maybe a different gender or a different group or race. Maybe that can change when you think about yourself, feel about yourself and think of people and other individuals.
TUCHMAN: Gary Tuchman, CNN.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
CHO: Just about half past the hour, checking our top stories this morning.
U.S. missiles reportedly score a direct hit on a Taliban camp in Pakistan overnight killing ten insurgents. Pakistani intelligence officials say six missiles were fired from an unmanned plane destroying a mountaintop training facility in South Waziristan. That's near the Afghan border. It's the second time in two days that U.S. missiles have struck a militant hideout in Pakistan.
CHETRY: Hey, we're talking about stimulus. Well, this is certainly a personal stimulus if you spend a lot of money on gas. The price of gas continues to drop. AAA reporting the national average for unleaded regular is now down to $2.59 a gallon, a penny less than it was Tuesday. Gas prices have now dropped for 17 straight days, and just remember this number, back on July 17, 2008, gas was $4.11 on average for unleaded.
CHO: And we both remember that. Guess what -- Americans are actually using less gas and spending less time stuck in traffic. Not so sure about that. The study by the Texas Transportation Institute attributing the changes to the economy and gas prices. Analysts say rush hour traffic congestion has dropped for the past two years in a row.
Again, I'm not so sure about that. Well, traffic is getting better in Los Angeles, though. The city still tops the list for the worst traffic jams in the country.
CHETRY: And the Obamas are in Rome this morning for the G-8 Summit. And the First Family just spent two days as well in Moscow. While the president took care of foreign policy business, the Obama girls are creating their first own buzz.
And joining us now from Washington to talk about the First Family's overseas reception, Nia-Malika Henderson, White House reporter for the Politico.
Thanks for being with us this morning, Nia.
NIA-MALIKA HENDERSON, WHITE HOUSE REPORTER, POLITICO: Good to be here.
CHETRY: So, you know, it's so funny because there are always big policy debates going on, but everyone still wants to know, oh, what are the Obama girls wearing and what are they doing when they're overseas?
And the interesting thing was, you know, there was a lot of extensive media coverage when they were -- when they were traveling overseas. Yet, the Russian trip resulted in some fewer crowds and also the Kremlin controls the media. And so how was this trip portrayed if you were in Moscow watching it?
HENDERSON: Yes, it was a little different. I mean, we saw, of course, the frenzy when the First Lady first -- made her first overseas trip and then again when the First Family made an overseas trip a couple of weeks ago as well.
It's been a little muted. There have been a lot of emphasis and focus on the First Lady's garden. Everybody is excited about that because remember Russia is a very traditional society. And so, you know, they've talked about Michelle as the mom-in-chief and less as, you know, kind of a fashion icon as we saw in her trips overseas when she was in Britain and France.
CHETRY: Right. And so speaking of the fashion icons, we're going to show you some pictures now. This is Sasha and Malia. They're exiting Air Force One. There you see them in Moscow. They're both wearing J. Crew. And then a J. Crew spokeswoman promptly distributed a product description of those items along with pictures of the girls.
The White House declined to comment, but the fact is J. Crew seems to like the fact, of course, that the First Children and First Lady are wearing their clothes.
What does it say about the marketability when they go out on the national stage and they're wearing J. Crew?
HENDERSON: Well, I mean, this is a gold mine, obviously, for J. Crew. And then as you said they immediately sent out this -- what I thought was kind of a press release about what these -- what the First Daughters were wearing. And even if you go to their Web site today, they have the coats that the First Daughters wore during the inauguration and they say, you know, that the first -- the coat that everybody has been waiting for, essentially. So, I mean, you can tell that they are kind of latching on to this and certainly using this as a way to move merchandise.
CHETRY: You know, the other interesting thing, though, is that J. Crew is using these images, as we said, to market some of the spring and summer styles. And as I mentioned, the First Lady's office not commenting. But earlier in the year, the First Lady's office did criticize the company that was making those Beanie Babies for modeling dolls after their daughters. So, what is the difference there?
HENDERSON: Well, it's a -- it's a very fine line. I mean, you're right. I mean, when the Beanie Baby incident happened, they issued a statement that essentially said they think it's inappropriate to use private individuals for marketing purposes.
And this certainly seems like what J. Crew is doing here. I mean, maybe the argument can be made that the girls in this capacity are actually in kind of a public role here when they're on Air Force One. They're traveling in their official capacity and maybe they're not private individuals in this instance.
And so that might be an argument that could be made. But it certainly is a kind of a fine and maybe even blurry line that they're walking. I mean, the bottom line is, the First Family clearly likes J. Crew. They like these clothes. And I think for a lot of people, maybe the Beanie Babies had a bit of a creepy factor and certainly weren't sanctioned by the White House.
CHETRY: Right. And as you said, I mean, if they wear J. Crew, they can't really put out a statement saying they don't want them because they really do wear it.
HENDERSON: Right.
CHETRY: All right. Nia-Malika Henderson, great to see you as always. White House reporter for the Politico. Thanks.
HENDERSON: Good to see you.
(COMMERCIAL BREAK)
CHETRY: (INAUDIBLE) this morning.
Welcome back to the Most News in the Morning.
A quick check of the AM rundown. These are some stories that we're going to be talking about a little bit later. One of them is at Wal-Mart. CHO: This is incredible. I was really surprised about this.
CHETRY: Wal-Mart is actually setting up shop in India. The thing is though is that very few people who live there will actually be able to partake in the everyday low prices Wal-Mart is so famous for. Our Sara Sidner is live in New Delhi to explain why.
CHO: Yes, I can't wait to see that story.
You know, I want to move on to food here. All of us do crave certain foods. You know, for me, chocolate chip cookies, little pizza, little Mac and cheese when I was a kid. I know for you -- I learned yesterday before you got on the plane that you took two bags of Funions.
CHETRY: You never know when you're going to need Funions. I'm sorry to the person I was sitting next to, by the way
(CROSSTALK)
CHO: There's a reason -- you know, there is a reason. There is a scientific reason why we crave these foods, evidence that shows our brains are actually being hijacked by food.
Watch.
(BEGIN VIDEOTAPE)
CHO (voice over): Ever wonder why that chocolate chip cookie seems to have so much power over you? Or why potato chips are so addictive?
UNIDENTIFIED BOY: Just one.
UNIDENTIFIED MALE: Bet you can't eat just one.
CHO: Researchers say our brains are being hijacked by fats, sugar and salt.
DR. DAVID KESSLER, AUTHOR, "THE END OF OVEREATING": Add flavor, add texture, add temperature, add color. And what do we end up with? One of the great public health epidemics of our time.
CHO: Former FDA commissioner Dr. David Kessler is author of the new book "The End of Overeating." Kessler says by combining fat, sugar and salt in all kinds of different ways, food makers are stimulating our desire to eat, even when we're full.
KESSLER: In fact, 20 years ago, the average bite had about 20 chews. Today, food goes down in one or two chews. It's a wash, we get stimulated and we reach for more and more.
CHO: We just can't help ourselves. Just ask four-star chef Daniel Boulud.
DANIEL BOULUD, OWNER-CHEF, DANIEL RESTAURANT: You know, the spicy, the sweet, the salty, the crunchy.
CHO: Chef Blue treated us to a tasting menu -- a bite-size symphony of sweet, salty and fatty foods.
BOULUD: It's about fat -- it's about tasty fat.
CHO: With every taste...
(on camera): Oh, it's so good.
(voice over): I found myself...
(on camera): Oh, my God.
(voice over): ...unable to stop eating.
BOULUD: You don't know why, but it feels good.
CHO: Like the short ribs that melt in your mouth and mashed potatoes with cheese inside. Sometimes you don't have to taste the food to know that you want it.
BOULUD: Sometimes it's the eyes. You know, you cross the room with a beautiful souffle or something and everybody is looking and saying, oh, I want that.
CHO: While Boulud agrees with Kessler that portion control is so important -- when it works.
BOULUD: We don't control how much you eat of it. We just control how much we give you. If you want more, that's out of my control.
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CHO: That's for sure. You know, I found myself watching the Michael Jackson coverage yesterday. I could have used this advice. You know, Kessler says, you know, just formulate thoughts in your mind, it's food rehab. Instead of saying I'm just going to have one bite because I can control myself, say, no, I can't control myself so I'm not going to even have that first bite because then I'll have 20.
You know, I found myself doing that with the chocolate covered peanuts yesterday.
CHETRY: Yes. I love that you got your own private tasting with one of the most popular chefs in our city.
CHO: Hey, listen, somebody's got to do it.
CHETRY: Yes, somebody has to do it. But the thing -- they market the chips -- you can't eat just one. I mean, it's true.
CHO: It is true. It is true. And it is about fat, sugar and salt. There's something about that sort of connection that connects with our brains. Anyway, if you want to read more about this story or sound off yourself, go to our blog, cnn.com/amfix.
Forty-two minutes after the hour.
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CHO: Watching a developing story. Welcome back to the Most News in the Morning.
Thousands of U.S. Marines on the move in Afghanistan. Their mission? To flush out the Taliban, of course. But U.S. commanders carrying out President Obama's new strategy for the war are expressing concern now over a shortfall of Afghan security forces. CNN's Barbara Starr live at the Pentagon for us.
So, Barbara, what are you hearing from your sources there?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Alina, good morning to you. We have spoken to senior U.S. military officials and they say absolutely, yes. They need more Afghan troops on the ground in that combat in southern Afghanistan's Helmand Province. This is becoming a serious issue, they say. You know, they just simply don't have enough Afghan troops.
And if they can't get more on the ground there, what is the risk? Well, the operation could basically stall. U.S. commanders say they must demonstrate progress to the Afghan people and that it has to come at the hands of Afghan security forces. If they just toss the Taliban out, the U.S. troops, well, the people aren't going really see their lives improve. So, this is becoming a very critical issue as we now enter the second week of this major combat operation in southern Afghanistan -- Alina.
CHO: And Barbara, of course, we are seeing some more deadly fighting across Afghanistan. What is the latest from the region right now?
STARR: Well, you know, even as the combat goes on down in the south, in the north and in the east, there have been a number of attacks against U.S. and NATO troops. And just one sad marker on the wall -- Monday alone, 10 NATO troops including seven U.S. troops died in the series of attacks in various places in Afghanistan. It was one of the deadliest days in over a year. So it shows that this effort is getting hotter and the combat is growing more intense.
Alina?
CHO: Barbara Starr live at the Pentagon for us. Barbara, thank you.
Forty-seven minutes after the hour.
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CHO: Forty-nine minutes after the hour. Welcome back to the Most News in the Morning.
Wal-Mart making its debut in, and of all places, India, opening its doors in one of the country's holiest cities.
CHETRY: Yes, the big-box chain is set to gain a giant foothold in India. And our Sara Sidner is live in New Delhi to show us and tell us more about the new store which is not your typical Wal-Mart.
What does this mean?
SARAH SIDNER, CNN INTERNATIONAL CORRESPONDENT: That right. It's not typical. But India's economy is growing despite the world economic downturn. So, it's no big surprise that the world's largest retailer is trying to find its niche in this country.
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SIDNER (voice over): Here in the "Holy City of the Golden Temple," an American retail giant is hoping to strike gold. Wal-Mart has finally made its way to India in a joint venture with one of the country's best-known companies -- Bharti Enterprises.
RAJAN MITTAL, BHARTI ENTERPRISES VP & MARKETING DIRECTOR: We understand the Indian consumer. We understand the Indian psyche. They'll bring the science and art of retailing. And I think it's a good mix to understand what the Indian consumer needs.
SIDENR: But not everyone can shop here. This is a wholesale store, aptly named Best Price Modern Wholesale. Here, only licensed business people, hotels, or institutions are allowed in. India's strict business rules forbid foreign companies from direct retail for fear multinational corporations will wipe out the little guy.
(on camera): Big box stores are almost non-existent in India. Ninety-five percent of the buying and selling happens in mom and pop shops. You want luggage, you buy it here. You want dried snacks, you have to go somewhere else. You want vegetables? You go to yet another place.
(voice-over): For some businesses it could mean visiting up to 25 different places every day just to stock the shelves until now.
JAGJIT SINGH HUNDAL, GM COUNTRY INN AND SUITES, ANVITSER: The hotel industry is a blessing, because everything you talk about stationery, you talk about crockery, cutlery, kitchen, your groceries, your even meats, your fish, everything is available under one roof.
SIDNER: The store also appeals to Sundar Singh, who owns a tiny shop in a nearby village.
"I traveled 40 kilometers but I save a lot of money and get good quality. I visit this place four to five times a week."
But not everyone is excited about the new store in Punjab.
Small distributor Parwan Sharma (ph) is worried. He said his business has dropped by 15 percent in the month Wal-Mart has been open. But the Bharti WAL-Mart partnership says with more than a billion people in India to serve, there's room for everyone to do good business here.
CRAIG WINSETT, BHARTI WAL-MART CHIEF OPERATING OFFICER: We believe it's been a very good move, and we have high hopes for the opportunities to be able to grow this format in other parts of India.
SIDNER: Bharti Wal-Mart plans to open 15 stores across India within the next few years.
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SIDNER: Now, because the store is so unique in this town, it's actually become also a place for business people to socialize and network, and Bharti Wal-Mart says more than 30,000 people have signed up for membership.
Kiran?
CHETRY: All right. Sarah, thanks so much.
And we want to know what you think of Wal-Mart's globalization in India's holy city.
Share your thoughts with us -- CNN.com/amfix. You can also call our show hotline at 877-my-amfix.
CHO: Fifty-two minutes after the hour.
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CHO: Fifty-five minutes after the hour. Welcome back to the Most News in the Morning.
President Obama moving from Russia to Italy, trying to tackle a global economic crisis at the G-8 Summit. The president touched down in Rome, just a couple of hours ago. He's there to meet with other world leaders.
It is a tough balancing act to say the least. Work with the world, while trying to do what's best for your bottom line.
Our Suzanne Malveaux is traveling with the president.
So Suzanne, what is the president's goal here in terms of getting our economy on better footing?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Alina, obviously, it starts with building better relationships with these leaders. I want to show you some fresh pictures just coming in. President Obama with the president of Italy, Napolitano. The two have met, making very brief statements later. He's going to be meeting with the Prime Minister Berlusconi. And all of this is really to try to figure out a way to move forward the American economy, the world economy, to deal with this global economic crisis. We did get a hint of what the president's message is going to be from yesterday when he was in Russia, before some Russian business leaders emphasizing the need for transparency, for open markets, for free trade, corporate accountability and those types of things.
The president, unlike some other world leaders has focused more on economic stimulus, pouring money into the economy, to try to turn it around. That is not something necessarily. That's something these other world leaders agree. The extent of economic stimulus. They want tighter regulations. These are the kinds of conversations, Alina, that the president is going to have.
And they really is kind of building up to what they hope is more coordination between these world leaders so that when the economies do turn, when things do get better, that this kind of crisis doesn't happen again.
Alina?
CHO: Suzanne, as you know, the G-8 Summit was supposed to be held in Rome initially. The last minute change of plans and it's being held now in L'Aquila, which is about an hour outside of Rome. Of course, we remember it because there was a deadly earthquake there in that region earlier this year.
But what is the significance of moving the G-8 Summit there?
MALVEAUX: And that's actually right where we are, is in this mountainous town. It's obviously where a lot of people devastated by that earthquake, where about 300 people who died. 50,000, Alina, who are still homeless. But the Prime Minister Berlusconi said that he did not believe it was in good taste to have these world leaders come be wined and dined in some sort of resort location, that he wanted to call attention to this area to show that there is progress in trying to put people back in their homes.
They're also trying to raise some money in the tune of $40 million in international donations to try to help out with that effort. So, obviously, it's twofold.
And should let you know, Alina, that there is a backup plan, an emergency plan as we got these aftershocks. They had one as recently as Friday. But if they have strong, powerful aftershocks, we're going to helo these guys, transport the world leaders back to Rome where they'll actually be able to continue with this summit.
Alina?
CHO: That would be quite a picture if that happens, Suzanne.
Suzanne Malveaux traveling with the president.
MALVEAUX: And we're going to stay here.
CHO: Yes, right.
Suzanne Malveaux traveling with the president.
Hey, Suzanne, great to see you as always.
MALVEAUX: All right. Thanks.
CHO: You know, as the president continues his trip, CNN will be there every step of the way. On Monday, a historic moment. America's first black president will visit Africa. And our Anderson Cooper will sit down exclusively one-on-one with President Obama. You can see that interview on Monday night, 10:00 p.m. Eastern Time right here on CNN.
