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American Morning

Arizona Wildfires Burning Out of Control; Hackers Hit Nintendo; Yemen on Verge of Civil War; Turning Point in Libya?

Aired June 06, 2011 - 06:00   ET

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


ALI VELSHI, CNN ANCHOR: I'm Ali Velshi.

A lot happening overnight. Let's get you caught up. Burning out of control, thousands chased from their homes by one of the biggest wildfires in Arizona's history.

CHRISTINE ROMANS, CNN ANCHOR: Chaos in Yemen.

I'm Christine Romans.

President Saleh undergoing surgery in Saudi Arabia after an attack on his compound. The U.S. with very serious concerns this morning about al Qaeda potentially stepping up to fill that void.

KIRAN CHETRY, CNN ANCHOR: And I'm Kiran Chetry.

Hackers hit Nintendo. The gaming giant becomes the latest company to suffer an online security breach. Find out if your personal information is at risk on this AMERICAN MORNING.

VELSHI: Good morning and welcome to AMERICAN MORNING. It is Monday, June the 6th.

CHETRY: Good to see you all. Breaking news out of Yemen, this morning. Right now the country on the edge of an all-out civil war. A cease-fire seems to be holding with thousands of people celebrating in the streets. The country's President Ali Abdullah Saleh is now in Saudi Arabia. He's had two operations there after he was wounded during an attack on his palace. His supporters, though, are vowing he will return.

ROMANS: Mohammed Jamjoom has been following this all weekend, is live in Abu Dhabi this morning.

Mohammed, the U.S. not so sure he's ever coming back. There are growing concerns about the void left by his departure and, I guess, who might fill it, right?

MOHAMMED JAMJOOM, CNN CORRESPONDENT: Oh that's right, Christine. As so many concerns right now, you've got people in Yemen speculating as to whether President Saleh will come back. Right now the vice president is nominally in charge.

But you have to remember in Yemen, even though the vice president has taken the reigns of the country right now, the head of the central security forces there, that's the counterterror unit, that's President Ali Abdullah Saleh's nephew. The head of the Republican guard, that's the elite force in Yemen, that's President Saleh's son. So a lot of power still concentrated within the hands of the Saleh family.

And that's leading to speculation there could be more clashes even though a cease-fire announced between the country's vice president and tribal leaders there of a tribe that's been battling it out in the streets of the capital for two weeks with government forces.

Well, today we hear that three tribesmen were killed by snipers. The spokesperson for this tribe says that government forces fired on these tribesmen at some point after the cease-fire was declared and that even though the tribesmen are holding to the cease-fire they're worried the government's going to keep trying to kill the tribesmen and might lead to more warfare in the streets of Sanaa.

So a lot of concern as to who is in charge, what the power backing situation in and what's going to be happening.

VELSHI: All right, Mohammed, we'll keep checking in with you in the fast-developing story.

Mohammed Jamjoom for us in Abu Dhabi.

Israeli security forces firing on hundreds of pro-Palestinian demonstrators along the border with Syria this weekend. The violence erupting on the anniversary of the 1967 war when Israel captured the Golan Heights. Syrian authorities say 25 people were killed and more than 350 others were injured. The U.N. is condemning the violence calling on both sides to use restraint.

ROMANS: Here at home, thousands forced from their homes as one of the worst wildfires in Arizona's history burns out of control. Fire fighters are trying to hold a 30-mile line against the wallow fire near the town of Springerville. That fire has already burned 180,000 acres. Twenty-two hundred people now told to get out. The flames so intense, right now, that firefighters can't get to close to see whose homes are burning. One resident is hoping the house he's built with his own hands will make it through.

(BEGIN VIDEO CLIP)

JESSE WALKER, WORRIED HOMEOWNER: Person don't realizes how hard it is to face something like that. You think you're prepared for it. You think you're mentally prepared for it, physically prepared for it, you're not. I cried all the way down.

UNIDENTIFIED FEMALE: You did?

WALKER: It's hard. I got to go.

(END VIDEO CLIP)

ROMANS: Forecasters say all of northern Arizona is under the threat of wildfires this morning because of the wind. Reynolds Wolf in the Extreme Weather Center. Just a dangerous situation. People can't get close enough to see -- firefighters don't know which homes are burning at this point.

(WEATHER REPORT)

CHETRY: Coming up in a few hours the former head of the International Monetary Fund will be formally arraigned on attempted rape and sexual abuse charges. Dominique Strauss-Kahn is expected to plead not guilty to the alleged attack on a maid at New York City hotel.

CNN's Deb Feyerick is following the latest developments. She's live outside of the courthouse in lower Manhattan this morning.

Hi, Feb.

DEBORAH FEYERICK, CNN CORRESPONDENT: Hey there, Kiran. Well, we've been told even since this happened back in the middle of May, May 15th, that, in fact, Dominique Strauss-Kahn would be pleading not guilty. His lawyers saying that evidence will suggest that, in fact, this was not a forced act that happened in the hotel room, but something bordering more along the lines of a consensual incident.

Now he is expected to be here at the courthouse today. This is 100 Center Street, where a lot of criminal cases are tried, sexual assault cases are tried. He's going to be leaving, really, a nearby townhouse where he has been living for the past couple weeks. He has been busy preparing his legal defense. He has hired some of the best lawyers in the city including Ben Brafman, who's represented a lot of high profile clients.

And those lawyers, actually, not too long ago, fired off a letter to the prosecutors saying that the police department had been leaking some critical information, including alleged forensic reports as well as witness statements. And in that letter, DSK's lawyer demanded access to the same material.

But the prosecutors, they're also playing hardball. They have brought in some of the most seasoned prosecutors to try this case and their response to the request for that so-called evidence. They said, we will be happy to provide it in due course following normal discovery procedures.

Now as far as the housekeeper, the hotel housekeeper from the Sofitel, she has hired her own high-powered legal defense team. They have been brought on to basically protect her, but obviously that suggests there's going to be some sort of civil litigation at some point along the way. So she has also lawyered up.

In the meantime, Dominique Strauss-Kahn, he has been under house arrest on $6 million bail. And just recently last week, he actually suspended his web site. Remember, he was running for president or he was expected to run for president of France as the leading contender. But, in fact, he suspended his website saying that since the incident, the site had received some 20,000 unique visitors and he said that you will understand the reasons that bring on the suspension. So again, he is now focused 100 percent on clearing his name and making sure that his reputation is restored -- Kiran.

CHETRY: All right. Deb Feyerick following the developments for us. We'll check in with you throughout the day. Thanks, Deb.

VELSHI: Also new this morning, a potential breakthrough for patients with melanoma, one of the deadliest forms of -- the deadliest form of skin cancer, actually. New research shows that two drugs can extend the life of melanoma patients. One blocks cancer cells and shrinks tumors; the other stimulates the immune system in people with advanced melanoma. Patient in clinical trials showed a 63 percent reduction in the death rate, compared with traditional chemotherapy treatments.

ROMANS: This is seen as a major shift in the war on cancer.

VELSHI: Sure.

ROMANS: So a lot of scientists very excited about this, this morning.

Also scientists say bean sprouts from Germany are the likely source of the e. Coli outbreak that's spread across Europe. At least 22 people have died now. More than 2,000 people have gotten sick. Officials say there's no indication yet the outbreak has peaked and it's said to be the deadliest outbreak of e. Coli ever.

CHETRY: Well, country star Trace Adkins lost his home in a devastating fire over the weekend. Adkins and his wife were not there but their children were. His wife says everyone got out OK, they were with a babysitter at the time and they all followed the plan that the family had in place to meet at a tree in front of their house. The neighbor saved the family dog. The nanny reportedly says that she heard a spark before the fire, but it's not clear what caused it.

VELSHI: And Nintendo says hackers gained access to one of its servers here in the United States. The gaming giant says no consumer information was stolen. A group that has hacked into the servers of Sony Pictures and PBS has claimed responsibility for the attack. CHETRY: The Miami Heat back on top in the NBA finals. The Heat holding off the Dallas Mavericks to win game three, 88-86 in Dallas. Chris Bosh got the go ahead shot for the Heat with 39 seconds left. And then Mavs' star Dirk Nowitzki misfired on a shot that would have tied the game in the final seconds. So the series resumes tomorrow night, game four, in Dallas.

VELSHI: And Raphael Nadal the king of clay (ph) again. The Spaniard captured the record-tying sixth French Open title on Sunday, beating Roger Federer in four sets, 7-5, 7-6, 5-7 and 6-1. The victory ties him with the legendary Bjorn Borg for the most career wins at Roland Garros.

CHETRY: We were calling it the clash of the titans this weekend. I mean, they're both so incredible. Good for Nadal.

Well ahead on AMERICAN MORNING, a bouncy house blown away because of severe winds. Children were inside at the time that this happened. The parents and kids are talking about some scary moments.

Meanwhile, Sarah Palin is on the freedom trail. Now OK, what is this controversy about the midnight ride of Paul Revere? Was she right? Did she mess it up? What does history say? We'll have it after the break.

(COMMERCIAL BREAK)

ROMANS: So parents and children this morning shaken up after a freak accident during a carnival on Long Island, New York. A gust of wind sent a bouncy house ride flying through the air. Now, the kids are still inside there. Terrifying. A mother captured it with her cell phone camera.

VELSHI: Wow.

ROMANS: The first house took flight and took out two other inflatable houses. Parents frantically trying to chase it down. One little girl barely escaped being strangled when a rope hooking down the ride ended up around her neck.

(BEGIN VIDEO CLIP)

VOICE OF LARA RHATIGAN, INJURED: It just felt like someone was grabbing my neck and I was -- they were dragging me.

MARIANNA RHATIGAN, MOTHER: I was getting hot dogs and I just happened to turn around and I saw the slide blowing in the wind and I just -- I couldn't believe. It was like something out of a movie.

JOAN RILEY, WITNESS: You could see from all over, the men ran to get the balloons, you know, the bouncy structures, down and everything like that. Yes, and it to make sure nobody was inside.

(END VIDEO CLIP)

ROMANS: Thirteen people wound up in the hospital. Luckily mostly bumps and bruises. All of them walked out without any serious injuries.

VELSHI: Wow.

CHETRY: When you look at the pictures that is pretty amazing.

ROMANS: No word on how many heart attacks the parents had.

VELSHI: Yes, no kidding.

All right. The Republican field is getting bigger today. Former Pennsylvania senator Rick Santorum is expected to make it official he is in the race for the White House.

CHETRY: But for Rick Santorum, will all of that be overshadowed by the latest Sarah Palin situation? She's undeclared but she's found herself trying to explain a little history lesson that she gave on the Freedom Trail this weekend. Jim Acosta live for us in Washington.

Hey, Jim.

JIM ACOSTA, CNN CORRESPONDENT: Good morning, guys.

Yes. You know, she billed this bus trip last week as a tribute to American history, so it wasn't - it wasn't out of the question that some intrepid reporter out there was going to ask her a question about American history and that's what happened up in Boston late last week. She was asked about Paul Revere and the significance of that midnight ride a couple of centuries ago and - more than a couple centuries ago, and here's what she had to say about the significance of that ride, something that she says she didn't get wrong.

(BEGIN VIDEO CLIP)

SARAH PALIN (R), FORMER ALASKA GOVERNOR: He who warned the - the British that they weren't going to be taken away our arms by ringing those bells and making sure as he's riding his horse though town to send those warning shots and bells and that we were going to be secure and we're going to be free, and we're going to be armed.

(END VIDEO CLIP)

ACOSTA: So this came across as a bit of a gaffe, because, obviously, the historical significance of Paul Revere's ride was to warn that the British were coming, warn the American patriots that the British were coming.

She was asked about this on the Sunday talk shows yesterday - or one of the Sunday talk shows yesterday on FOX News Sunday, where working for Fox, she's a paid contributor and - and she claims that she did not get this wrong. Here's what she had to say.

(BEGIN VIDEO CLIP)

PALIN: You know what, I didn't mess up about Paul Revere. Here's what Paul Revere did. He warned the Americans that the British were coming. The British were coming and they're going to try to take our arms. And it wasn't just one ride. He was a courier. He was a messenger. Part of his ride was to warn the British that were already there, that, hey, you're not going to succeed. You're not going to take American arms. I answered candidly and I know my American history.

(END VIDEO CLIP)

ACOSTA: Well, she didn't get the historical significance of the Paul Revere ride wrong. However, she does have a little bit of a point. Paul Revere was eventually captured after that midnight ride and he did warn the British that the Americans were amassing this - this large militia and that they better watch out. So she does have a small point there. But she did get the historical significance of the occasion wrong there. And I - I got to say, guys, it's too bad that she didn't just come out and say, hey, guys, I got this wrong. She sort of blamed it on a media "gotcha" question as she called it. And after all, she is a part of the media now, she has to expect these sorts of questions, especially about American history, when you're on a bus trip paying tribute to American history, it's not out of the question you're going to be asked about American history, guys.

ROMANS: And I haven't thought about that that she's a part of the -

ACOSTA: Sure.

ROMANS: -- American media now.

ACOSTA: She is. That's right.

ROMANS: That's touche.

Rick Santorum, meanwhile, his grandfather I think settled in - what - Somerset, Pennsylvania in 1927 that's where he's going to declare today?

ACOSTA: That's right. And, you know, this is a long shot run for Rick Santorum. He lost his Senate seat back in 2006. He lost by 18 points in that race to Bob Casey. So a lot of Republicans see this as sort of a long shot deal.

But, you know, he is banking his success on Evangelical conservatives, social conservatives who play a significant role in places like Iowa and South Carolina and he does have a shot. I was in Iowa a - a few weeks ago and talked to some social conservatives out there and they said they're watching Rick Santorum. So he does have this announcement later this morning in Pennsylvania and he may do well out there in Iowa.

But, you know, we just talked about Sarah Palin a few moments ago. She is the - she is the X factor in this race right now. You know, she is not listed, you know, we have a graphic we can put up a full screen. You know, she is not among those candidates who have confirmed they are running for president at this point. But if she gets into this race, she cuts into the support for people like Rick Santorum, people like Michelle Bachmann who may be announcing that she's jumping in any minute now.

And one - one final thing, we do have a plug to mention, the CNN Political Team is hosting a debate, one week from today up in New Hampshire, and it's going to be interesting because Rick Santorum will be part of that bunch. Who knows if he can try to break out of that pack? That's really his only hope at this point, guys.

ROMANS: All right. We'll look out then (ph).

We'll be there live, of course, only on -

ACOSTA: Of course.

ROMANS: -- CNN that - that debate. Thanks, Jim.

ACOSTA: You bet.

ROMANS: One of the early frontrunners for the GOP nomination, Mitt Romney, will sit down with Piers Morgan tonight. His first primetime interview since jumping in. Don't miss that. That's live at 9:00 P.M. Eastern right here on CNN. And more politics - ah, in the morning -

CHETRY: That's right.

ROMANS: -- in the evening, all day long.

CHETRY: And, you know, Mitt Romney is actually banking on economic issues when he - when he runs hoping that, you know, he can prove that, hey, I led a state. I was also a businessman, and I'll probably be better than this current administration when it comes to the economy.

We wanted to ask you, though, what is the single most important issue facing America today?

ROMANS: Yes. Send us an e-mail. You can give us a tweet. You can tell us on Facebook. We're going to read some of your responses throughout the morning.

VELSHI: All right. Coming up next on AMERICAN MORNING, Steve Jobs is taking a break from the medical leave that he's been on because he's going to make a big announcement today. We'll have details on what the Apple CEO is going to unveil later on.

CHETRY: Also, Defense Secretary Robert Gates like you've never seen him before, saying good-bye to U.S. troops in Afghanistan.

It's 20 minutes past the hour.

(COMMERCIAL BREAK)

ROMANS: It's 23 minutes after the hour. "Minding Your Business" this morning.

Markets open after five weeks of declines in a couple hours. It's the longest losing streak for the Dow since July, 2004. The longest slump for the S&P 500 since July of 2008.

Also weighing on investors, Greece dealing with a debt disaster this morning. The country is expected to need a second bailout. Now, that worries economists because it could add more pressure to the international banking system, which has been trying to regain its footing.

A new report expects state and local governments to cut as many as 110,000 jobs in the coming months with teachers and other school employees bearing the brunt of the layoffs. The new fiscal year begins next month and many states are facing multibillion dollar budget deficits. Americans opting not to wake up to a bowl of cereal. Sales falling more than 2.5 percent in cereal in the past year, that's according to one research group. Americans spend about 13 minutes eating breakfast and they're choosing breakfast sandwiches or breakfast bars instead.

Despite being on medical leave, Apple's CEO Steve Jobs will kick off Apple's Annual Conference today. He's expected to announce a new on- line service for storing music and other files that's called iCloud.

And at the box office this weekend, x marked the spot, "X-Men: First Class" took in an estimated $56 million. It's the fifth installment of the "X-Men" franchise. "Hangover 2" and "Kung Fu Panda 2" rounded out the top three.

AMERICAN MORNING will be back right after this break with whether we've reached a turning point in the fight against Libyan leader Moammar Gadhafi.

(COMMERCIAL BREAK)

VELSHI: Good morning. Twenty-eight minutes after the hour. Let's bring in your top stories now.

High winds blowing a massive wildfire across Northern Arizona right now. The Wallow Fire as it's called has already burned more than 180,000 acres. Containment is zero at the moment. Twenty-two hundred people have been chased from their homes.

CHETRY: It's arraignment day in New York City today for Dominique Strauss-Kahn, the former head of the International Monetary Fund. He's expected to plead not guilty today to charges of sexually assaulting a maid at a Manhattan hotel. It's his first court appearance since being released on $6 million bail.

ROMANS: Yemen on the edge of an all-out civil war this morning. A one week ceasefire seems to be holding. Thousands of people celebrating in the streets. The country's president Ali Abdullah Saleh is in Saudi Arabia. He's undergone two surgical procedures after being wounded during an attack on his palace on Friday.

VELSHI: And we'll have more on that.

Also in Libya, NATO forces stepping up their air assault on Moammar Gadhafi's regime. A significant turning point here. Look at these. This weekend for the first time, British and French attack helicopters were deployed against Gadhafi troops in Tripoli.

CHETRY: Could this mark a turning point in the effort to remove Gadhafi from power?

CNN's Dan Rivers is live in the Libyan capital for us. Hi there, Dan.

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes. Good morning.

This could be really significant, the Apache Longbow, which is off the British forces have deployed for the first time from a ship out in the Mediterranean is a fierce weapon equipped with Hellfire missiles and a 30-millimeter cannon that some military analysts think could be a real game changer here.

(BEGIN VIDEOTAPE)

RIVERS (voice-over): This the turning point in Libya. NATO hopes so. French Tiger (ph) helicopters lift off and, for the first time, striking pro-Gadhafi forces.

And here, British Apaches are hitting military targets near the strategically important town of Al Brega. Military analysts say it might just tip the momentum towards the rebels.

These are U.S. Apaches on training exercise in South Korea last year. The pilots told me there's nothing to match their maneuverability and firepower. In Libya, their deployment could be critical, but their low-level flying will make them much more vulnerable than the high- level jets that had been the main attack force until now.

NATO says that part of the campaign is continuing. Here, British tornadoes hit targets in al Brega, but there have been more air strikes in the capital Tripoli.

We were taken to a Coptic church by government minders southwest of the capital. The priest claims NATO bombs have been falling all around for five days. There were some broken windows, but that was all.

(on camera): The lack of damage in this church, perhaps, speaks more of the accuracy of some of these NATO airstrikes. In fact, we can't see any damage at all in here, yet right next door, what looks like a military installation has been completely destroyed.

(voice-over): Government officials didn't want us to film this building, next door, apparently some sort of military installation, which looks like it's been bombed. Nine-year-old Mora (ph) had taken shelter in the church with her father when the bombs fell.

UNIDENTIFIED GIRL: I was feeling that the place I was sitting in, would fall at me and -- but that didn't happen. I was very, very afraid or scared.

RIVERS: The visit to this church was carefully orchestrated by the Libyan government. But the turmoil these children are living through is very real and they, like everyone here, have no idea when and how this will all end.

(END VIDEOTAPE)

RIVERS: The government's regime here has continued to take journalist out to alleged sites of NATO airstrikes. They say they've hit residential areas. It's impossible for us to know whether that's the case or not.

We were taken to one and shown a crater with what appeared to be some sort of remains of a rocket in it and were told children had been injured. We were taken to a hospital and shown a 7-month-old baby who was in a coma. But staff passed a note to one journalist saying, in fact, that baby had been injured in a car crash and not as a result of the missile strike.

So, there's a lot of spinning going on here to try to give the impression that NATO are hitting residential areas. The truth, while NATO are denying that, and, you know, frankly it's very difficult for us to know one way or the other.

KIRAN CHETRY, CNN ANCHOR: All right. Well, good reporting, Dan. Thanks so much.

CHRISTINE ROMANS, CNN ANCHOR: Defense Secretary Robert Gates delivering an emotional farewell to U.S. troops in Afghanistan on his final visit as defense secretary. Gates told the troops he feels, quote, "personally responsible" for making sure they have everything they need to succeed and return safely home.

(BEGIN VIDEO CLIP)

ROBERT GATES, DEFENSE SECRETARY: I just want you to know I think about you every day. I feel your hardship and your sacrifice and your burden and that of your families, more than you can possibly know. You are, I believe, the best our country has to offer and you will be in my thoughts and prayers every day for the rest of my life. Thank you.

(CHEERS)

(END VIDEO CLIP)

ROMANS: Gates is leaving his post later this month.

ALI VELSHI, CNN ANCHOR: Well, it's the start of week three in the Casey Anthony murder trial in Orlando. The young mother is charged with killing her 2-year-old daughter Caylee. So far, testimony has revealed a web of lies, but prosecutors still must link the young mother to physical evidence in her daughter's death.

This weekend, an FBI forensic expert testified about a nine-inch strand of hair that was found in the trunk of Casey Anthony's car.

(BEGIN VIDEO CLIP)

KAREN LOWE, FBI FORENSIC EXPERT: What I was looking for were any hairs that exhibited characteristics of apparent decomposition and then that hair I compared to hair recovered from the hair brush which is identified as belonging to Caylee.

(END VIDEO CLIP)

VELSHI: Karen Lowe, who you heard there, told jurors that based on her microscopic analysis, the strand of hair was consistent with hair that was found in Caylee's hair brush. CHETRY: Well, a touching story from the scene of devastation in Massachusetts. A family reunited with their puppy that was literally carried away by a twister last week. Police say that a state trooper heard barking and crawled under a pile of splintered wood and broken glass and pulled out the puppy named "Shadow" from the rubble.

One family member described the terror of watching him being torn away from them.

(BEGIN VIDEO CLIP)

AUDREY CARABETTA, OWNER: Hear his nails being dragged across the floor and he was crying, you could hear him hitting the walls as he was being pulled out of the house. It just completely broke my heart. He jumped all over us and licked us and he's doing great. He's tired and hungry, but besides that, he's in great shape.

(END VIDEO CLIP)

CHETRY: Wow. Amazing. Shadow was unharmed. He was a gift for the family's daughter who is in remission from cancer.

VELSHI: Wow.

ROMANS: Reynolds Wolf is in the extreme weather center.

And that's the thing about tornadoes, Reynolds, almost like the fingerprint of a tornado that you don't know where the destruction is going to be and where you're going to find some kind of a miracle in the rubble, and that's certainly what happened for Shadow.

REYNOLDS WOLF, AMS METEOROLOGIST: No question about it. Those conditions are very random when you have those tornadoes. Certainly, as evidence by what we heard in the story in Massachusetts. And, of course, in stories, say, in part of Joplin, Missouri, and certainly, in Tuscaloosa, Alabama, as well as other places around the country, have been hit by the tornadoes.

And speaking of tornadoes, it seems like we've kind of had a lot of rough weather, not just with those twisters but also with flooding, especially in the Northern Plains and back in the Central Plains. As we hone in a few key spots, it's been very bad in parts of the Dakotas, South Dakota near Pierre, you've had mass evacuations. Also parts of Nebraska, more of the same. We've gotten some video to prove the story.

Let's go right to it. You do show you, we've got the water levels rising and as they do, a lot of people, of course, taking their belongings and moved out, certainly very dire conditions there. Hearts go out to the men and women, the families that are suffering from the floodwaters at this time.

Let's go back to the weather computer and as we do so, something else that you're going to notice, some severe thunderstorm watches now in effect as we make our way from the storm system that pulls from parts of Minnesota and Iowa, into Wisconsin. We might see some flash flooding in places like Baraboo maybe and as far south as Madison before the day is out. Nothing severe at this point but there will be that potential later on today.

We'll have more on your forecast in a few moments. But for now, let's pitch it back to you in New York.

VELSHI: Reynolds, thanks very much. We'll check in with you again shortly.

ROMANS: OK. The "Miracle on the Hudson" plane is on the move. Remember this story? It's heading to Charlotte, North Carolina, where it will have a permanent home in a museum there. The plane left a New Jersey warehouse on Saturday. There was a bit of a delay after it got stuck at an intersection.

You remember back in 2009, the U.S. Airways jet piloted by Chelsea "Sully" Sullenberger, struck a flock of geese, lost engine power and then landed safely in the Hudson River. The plane is expected to arrive in a week or is with the museum inviting all 155 crew members and passengers to the reception there.

CHETRY: Where are the wings?

VELSHI: You got to take them off to transport it.

CHETRY: Yes, all right. They're coming separately.

VELSHI: I don't remember them having come off. If you recall, the passengers were standing on the wings.

ROMANS: It was basically attached.

CHETRY: People thought it was a movie set, they thought they were filming a scene.

ROMANS: Only in New York can you go to the harbor and be there's a movie out there.

(CROSSTALK)

VELSHI: We're so jaded here. It must be a movie.

All right. Coming up next on AMERICAN MORNING: some signs of optimism in the economy. I'll give you something to think about.

CHETRY: Also, John Edwards said to have nixed a plea bargain before being indicted. We'll tell you what the deal-breaker was.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN breaking news.

CHETRY: Breaking news this morning out of Iraq. Five U.S. service members have been killed. The deaths are the single largest loss of life among U.S. troops in Iraq in months. The military is not releasing right now how they were killed. But according to two Iraqi security officials, the service members were killed during an early morning mortar attack at a U.S. military base in southeastern Baghdad.

The military says that the names of the service members are being withheld until families are notified and we'll bring you more details throughout the morning as we get them.

ROMANS: New this morning, jail time was apparently the reason a possible plea bargain for John Edwards collapsed. A source is telling CNN that talks broke down when prosecutors insisted Edwards serve six months for allegedly violating federal campaign finance laws. Edwards wanted the deal to have a minimal impact on his children. The former North Carolina senator and presidential candidate has pleaded not guilty to using campaign funds to hide an extramarital affair.

Florida governor, Republican Rick Scott, is defending a new controversial law that will force people applying for welfare to submit to a drug test. He spoke to our T.J. Holmes over the weekend.

(BEGIN VIDEO CLIP)

GOV. RICK SCOTT (R), FLORIDA: Our tax payers are not interested in subsidizing drug addiction. I mean, it's no different than -- think about it -- if you go to apply a job, they're not saying you use drugs. They're just saying, in that work environment, they don't want you to use drugs.

In this case, we do not want to subsidize drug addiction. We want to give everybody an increased incentive not to use drugs. It's better for our families. It's better for the individual and it doesn't waste taxpayer money.

(END VIDEO CLIP)

ROMANS: Democrats are slamming the law saying, the tests are an invasion of privacy. The ACLU is filing suit against Scott's drug testing order.

Massive protests in Greece. Tens of thousands of people are taking to the streets last night. They're upset about new taxes and spending cuts required to get a second international bailout package. The first aid package to help Greece bay down its debt was worth nearly $161 billion -- Ali.

VELSHI: Well, there's not a lot of optimism this Monday morning when it comes to the nation's economic outlook. To put it simply, last week was not a good week. And this morning, many are concerned about the week ahead.

But I'm here to tell you not all is doom and gloom. In fact, there are some reasons to be optimistic. Let's take a look at a few key areas. The first one when we talk about a lot -- the markets.

Take a look at this. This is the Dow since the beginning of the year. Your IRA or 401(k) investments may reflect some of this.

Take a look at that -- went up, we had a big drop down there in March, then up again, and now we saw a big drop again. This was not a great scene in the month of May and the Dow has lost value for the past five weeks.

But take a look at the bigger picture. The Dow where it stands right now is still up compared to where it started the beginning of the year, up 5 percent actually. That's not bad for half the year. The S&P 500 also up since January by 3.5 percent.

So, when people tell you it's all bad, it's not necessarily all bad.

Gasoline prices -- that has been occupying us for months. It doesn't feel like it should be a bright spot. But with Memorial Day behind us, many experts predict that the price at the pump could continue to decrease. In fact, this morning, the national average for a price of unleaded gasoline -- if you fill it yourself -- $3.77. Overall, that decline is good for the economy.

And, finally, home sales -- that's what started the bad news last week. There hasn't been much reason for optimism here, but look a little deeper and there is a glimmer of hope. Take a look at this graph and this is based on data compiled by LPS Applied Analytics.

This is the number of delinquencies for homes. It shows a 16 percent drop in the last year in the number of home loans that are at least one month past due -- a decrease. Seriously delinquent loans, those that are 90 days overdue or already in foreclosure, those are down 11 percent over the last year.

Now, you combine the decrease in delinquencies in foreclosures with low home prices and record low mortgage rates and this continues to be an ideal time in some parts of the country to buy a house.

CHETRY: Well, seven Republican presidential hopefuls are ready to go head to head in New Hampshire in a live nationally televised debate. It's a week from tonight. It's right here on CNN. But it's one potential candidate who hasn't even declared her intentions, Sarah Palin, who seems to be stealing the spotlight.

With more on the state of the Republican Party, here's CNN's host of "STATE OF THE UNION," Candy Crowley.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN ANCHOR (voice-over): Sarah Palin capped off the first week of her "this is not a campaign tour" aboard a "this is not a campaign bus" with a "this is not a campaign appearance."

SARAH PALIN, FORMER ALASKA GOVERNOR: What President Palin would do is cut the federal budget.

CROWLEY: Unclear is whether Palin's hide and seek tease tour will continue this week or not. Somewhere in Pennsylvania, Rick Santorum is hoping not. Making his bid official Monday, Santorum could use some oxygen for his campaign.

RICK SANTORUM, FORMER PENNSYLVANIA SENATOR: It's been great to be out on the Hustings. I've been to New Hampshire, I think, it's my 15th time. CROWLEY: Who knew? not many. A recent survey by Pew Research found fewer than half of voters who lean Republican have ever heard of the former senator from Pennsylvania. Counting Santorum there are seven people known and not so much known know officially running for the Republican nomination for president.

Former Minnesota governor Tim Pawlenty will outline his cure for what ails the economy this week in Chicago, Illinois. Need we say more?

TIM PAWLENTY, REPUBLICAN PRESIDENTIAL CANDIDATE: President Obama's policies have failed.

CROWLEY: In the cycle of presidential elections, this is big dream season.

RON PAUL, REPUBLICAN PRESIDENTIAL CANDIDATE: I am so delighted to see you involved in our revolution.

CROWLEY: And Texas Congressman Ron Paul is on round three. He first ran for president as a Libertarian 23 years ago, preaching lower taxes and less spending.

PAUL: Mainstream is moving in the direction that I have been talking about for a long time and, therefore, nobody knows what the outcome will be in this election. During the last campaign I knew what was happening. You know, they mocked me for my foreign policy and they laughed at my monetary policy. No more.

CROWLEY: And finally on Capitol Hill, where the campaign runs through it, this may be big miracle season.

REP. NANCY PELOSI (D), MINORITY LEADER: There is a bipartisan discussion going on that is civil and constructive and that they've come to some areas where they can possibly reach agreement but that nothing is agreed to until everything is agreed to.

CROWLEY: What the House Democratic leader will not agree to is cuts in Medicare which sounds like square one. Except Nancy Pelosi is not known for her sunny outlook on bipartisan deals. Time is running out to raise the debt ceiling and throughout Capitol Hill history, deadline pressure has always outperformed miracles. This could be the week -- or not.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

CHETRY: And there's only one place to see next week's Republican presidential debate -- right here on CNN. It's live at 8:00 p.m. Eastern, a week from tonight.

ROMANS: Well, he almost didn't get there. The Connecticut teen who was briefly banned from his prom finally made it to the big dance on Saturday. You'll remember James Tate. He was originally told he couldn't go to the prom after he plasted his prom proposal in thick letters on the side of his high school. Well, after thousands of people rallied behind him, there was even a Facebook page, the school caved. Here you can see James and his date arriving at the Hawaiian- themed prom. And while there had been calls to name him prom king the honor did go to another young man.

CHETRY: Well, at least the school did the right thing.

VELSHI: Totally. Yes, yes, yes. It was sweet.

(CROSSTALK)

ROMANS: The moral of that story is, don't post anything on the school walls.

VELSHI: You can't clamp down on old fashioned romance. That took effort. I admire -- did you really -- I mean, once that story got out, you must have thought, you both must have thought he was going to go to the prom.

ROMANS: I did. I was surprised how firm the school was about -- they have a zero tolerance policy and he did affix it to the side of the school and he's not supposed to do that.

VELSHI: I kind of admire the school for saying we really do have a policy, but they did cave to romance a little bit.

CHETRY: There you go. Well, just wait until next year when it gets more elaborate when they paste a billboard to the actual side of the school. Hey, but you let him go.

ROMANS: And romance is not on the list of what we're expecting to be getting on our question of the day either.

CHETRY: Which is, what is the single most important issue facing America today?

VELSHI: Lack of romance.

CHETRY: Send us an e-mail, a tweet, tell us on Facebook. We'll read some of your comments -- and we've been getting some good ones -- in just a few minutes.

(COMMERCIAL BREAK)

CHETRY: Fifty-one minutes past the hour. Here's a look at your headlines this morning.

Yemen could be on the brink of civil war. Right now a cease-fire negotiated by Saudi Arabia is holding this morning. The President Ali Abdullah Saleh is in Saudi Arabia recovering from two operations after being wounded during attack on his compound.

Twenty-two hundred people chased by a massive wildfire in Arizona. It's already burned 180,000 acres and is still out of control this morning.

There's some encouraging news in the treatment of the deadliest form of skin cancer. Researchers say that two new drugs slow the progress of melanoma and can extend the life of melanoma patients.

It's week three of the Casey Anthony trial that gets underway this morning. An FBI forensic expert testified this weekend that a nine- inch hair found in the young mother's trunk could belong to her murdered daughter Caylee.

Lawmakers in Alabama passing a controversial new immigration law that requires businesses to verify the legal status of all new hires. It also permits police to stop drivers suspected of being in the country illegally.

And the Miami Heat now just two games from an NBA title. They overcame game two meltdown to beat the Dallas Mavericks last night in Dallas, 88-86, to take a 2-1 lead in the NBA finals.

You're caught up on the day's headlines. AMERICAN MORNING is back after a quick break.

(COMMERCIAL BREAK)

VELSHI: Imperial Beach, California, is a mecca for surfing. Even dogs are catching the waves. CNN iReporter Chris Morrow sent us this video of the Lowe's surf dog competition held over the weekend.

Check this out. Some 60 dogs took part in the event.

CHETRY: He looks thrilled.

VELSHI: Yes. Doesn't look that happy.

CHETRY: He's being dragged out onto the surf.

VELSHI: The benefit goes to the group donors choose.org.

CHETRY: You'd never get a cat --

VELSHI: That dog does not look happy.

CHETRY: That dog looks very cat-like.

ROMANS: All right. Sinking stocks and disappointing jobs numbers threatening our economy. It's already been a pretty shaky recovery, but will that be the deciding factor at the polls?

CHETRY: Well, it leads us to our question of the day. What is the single most important issue facing America today?

We got a lot of varied responses.

VELSHI: Interesting responses.

ROMANS: Yes.

George on Facebook said, "Jobs, jobs, jobs and more jobs."

VELSHI: And I thought that would be sort of the theme, jobs or debt. But we got some --

ROMANS: For many people, the average length of unemployment now is 39 weeks. That's the longest it's ever been on record so you can see why people are so upset.

Shelby on Facebook said, though, "Debt control."

In some ways, jobs and debt control, those two things could work across (ph) purposes.

VELSHI: That's right.

CHETRY: Gene Starwind from Twitter writes, "Human induced climate change. What else matters if the world is no longer inhabitable."

Also, Cynthia Carter Wagoner on Facebook, "Health care."

VELSHI: And Jun Gureshi (ph) on Twitter writes, "Innovation. Falling behind in new technologies and not focusing on infrastructure."

So some good ideas out there. Keep your comments coming. Send us an e-mail, a tweet, tell us on Facebook. We'll read some more of your thoughts a bit later in the show.

Our top stories are just minutes away, including a very fragile cease- fire in Yemen. The president is undergoing surgery in another country after being wounded in an attack on Friday. Is this an opening for al Qaeda? we'll discuss it with Jamie Rubin when we come back.

(COMMERCIAL BREAK)