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American Morning
"The Best Kept Secret in America"; Terror Leader Taken Out; Arlene Makes Landfall; Nigerian Man Sneaks on Flight; Obama Slams Republicans for Not Raising Debt Ceiling; Popular Breast Cancer Drug May Lose FDA Approval
Aired June 30, 2011 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALI VELSHI, CNN ANCHOR: The defense may rest its case today in the Casey Anthony murder trial after a day of riveting testimony. Her sobbing father on the stand and accused killer stone-faced. Could she take the stand today? On this AMERICAN MORNING.
KIRAN CHETRY, CNN ANCHOR: And good morning to you. It's Thursday, June 30th. Glad you're with us on this AMERICAN MORNING. And that's a big question today. Will Casey Anthony take the stand in this trial? It's now wrapping up.
CHRISTINE ROMANS, CNN ANCHOR: That's right. Will she testify at her own defense? The Casey Anthony murder trial could wrap up as early as today. Yesterday Casey wiped away tears as a grief expert testified, but only a few hours earlier she sat at the defense table and just stared when her father, George Anthony, sobbed on the witness stand.
Carol Costello joins us live from Orlando, Florida. Another dramatic day in the courtroom, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: It sounds so cliched, but it was very emotional day in court. Maybe Casey Anthony will have to take the stand. Her father, George Anthony's, testimony was cried effective. He cried, wept. He kept on crying. The defense tried to paint him as a man that molested the daughter and covered up the death of his granddaughter.
(BEGIN VIDEO CLIP)
GEORGE ANTHONY, CASEY ANTHONY'S FATHER: I need to have something inside of me get through this.
COSTELLO: Testimony so emotional from George Anthony at times the judge asked if he could continue. Mr. Anthony's tears did not appear to faze Casey. She sat emotionless even as they are father cried how he attempted suicide weeks after the remains of his granddaughter, Caylee, were found in December of 2008.
ANTHONY: I needed at that time to go in and be with Caylee.
UNIDENTIFIED MALE: You expressed that in the note?
ANTHONY: Yes, I did because I believe I failed her. COSTELLO: In his questioning of the witness, attorney Jose Baez tried but did not succeed in advancing the defense's contention that Mr. Anthony helped cover up his granddaughter's death and molested his daughter, Casey.
ANTHONY: Sir, I never would do anything like that to my daughter.
UNIDENTIFIED MALE: My question is you would never admit to it, would you, sir?
ANTHONY: Sir, I would never do anything to harm my daughter in that way.
COSTELLO: The tension between witness and defense attorney was palpable at times.
ANTHONY: Sir -- you are arguing with me, sir.
COSTELLO: Especially when Baez asked Anthony about conflicting statements about an odor emanating from Casey Anthony's car.
ANTHONY: You are trying to take this joy of my life away from me, sir, and you can't do it anymore.
UNIDENTIFIED MALE: Would you like --
ANTHONY: I'm going to answer this to you, sir. The decomposition that I smelled in the trunk of my daughter's car on July 15, 2008, at Johnson's towing smelled like human decomposition. I can close my eyes at the moment, sir, and I can smell that again. How dare you, sir, try to tell me that I did something differently than what I did?
(END VIDEOTAPE)
COSTELLO: Most defense experts say George Anthony's testimony was devastating to the defense. As for what witnesses for the defense will call today, well, maybe Casey Anthony, but maybe Crystal Holloway, the woman that said she had an affair with George Anthony, you know, AKA River Cruise. She may give testimony that will shake confidence that George Anthony instilled in the jurors' mind but I know you will talk to Sunny Hostin and she knows better than me.
ROMANS: This story, characters, everything about it, I mean, this is why people are riveted. Thanks, Carol.
CHETRY: In these six weeks of testimony George Anthony's tearful moments on the stand may be probably some of the most riveting moments of television.
VELSHI: Right. Obviously some of the best testimony we have seen has been when it is somebody from Casey Anthony's family. Joining us is Sunny Hostin. Legal contributor for "In Session" on TruTV. She has been following this endlessly. Sunny, carol just said that they think that was devastating for the defense. Why?
SUNNY HOSTIN, LEGAL CONTRIBUTOR, "IN SESSION": Because the defense hung its hat on blaming George Anthony. They said George Anthony sexually abused Casey Anthony when she was a child, which is why she behaved the way she did for 31 days. And they also said he was complicit and knew this was an accidental drowning and somehow took part in the cover up of that.
So they - the defense really needs this jury to believe he is a monster and bad guy. What we saw on the witness stand yesterday was -- what appeared to be a grieving grandfather really humanized him yesterday.
I have to tell you, the day before, he denied having any sort of relationship with river are Crystal Holloway. The jury has seen two faces of George Anthony. Quite possible that there is a juror that thinks well, he -- could be a liar. That may come true today because Krystal Holloway will take the stand.
CHETRY: She definitely will be taking the stand?
HOSTIN: She has been in the witness room.
CHETRY: I want to ask you about this accidental drowning. If they are wrapping up their case today, Crystal Holloway will not be testifying about an accidental drowning. Where are they prove thing alternative -- even doubt that it -- Caylee Anthony was a victim of an accident?
HOSTIN: I think that's a huge hole in the defense's case now. That's why I have been saying from the beginning, I'm going to say it again today -- I think Casey Anthony has to take the witness stand to prove that defense opening statement. When I was a prosecutor I was known forgiving very big opening statements. My supervisors used to say you wrote a check. Do you have funds in your account to cash that check? You better have evidence in your bank account.
And that's how I feel about Jose Baez's opening statement. Where is the proof of the accidental drowning? The defense says it will rest today. If it is going to happen it is going to happen today. Maybe I have been wrong all this time. But if I'm wrong the defense is in trouble because, again, question is the right one. Where is the evidence of that? I don't think it is come in yet.
ROMANS: Sunny, thanks so much. It is fascinating.
HOSTIN: Fascinating.
CHETRY: Also new today, the militant leader believed to have helped plan the attack on the intercontinental hotel in Kabul was killed by an airstrike in Afghanistan. Ismael Jan, a member of the Haqqani Network, it is the same group that Afghan officials believe was the real culprit behind Tuesday's attack. And 21 people died in the siege, including 12 victims and al nine attackers.
A major fallout from the mission to kill Osama bin Laden, Pakistan now telling the U.S. military to leave an air base, to leave. That air base is used to launch the drone attacks that have been so successful against terrorists. It's something that could be a major setback in the fight against Al Qaeda. But a U.S. official telling CNN that the base is still open and that comments from Pakistan's defense minister are, quote, "news to us."
VELSHI: Right now thousands of teachers and nurses and public workers in Britain are hitting the picket line, shutting down schools and disrupting air travel. It has been called the biggest strike in Britain since 1926. These are live pictures of demonstrations under way in Great Britain right now. Dan Rivers is live in London. Dan, why are they striking? We have been so consumed with Greece, what's going on in Great Britain?
DAN RIVERS, CNN INTERNATIONAL CORRESPONDENT: This is all part of the wider story in Britain, austerity of government owing huge amounts of money they have to pay back and then trying to cut different parts of the public sector in order to get back some of that money. This is about pensions, retirement funds, for public sector workers. Government wants to change those funds in effect many people have to work longer and pay more and get less when they retire.
And that has infuriated teachers and lecturers here and other public sector workers who feel that's completely unfair, that they are basically having to pick up the tab for bailing out the banks during the financial crisis.
VELSHI: Dan, we will keep a close eye on it throughout the course of the day.
CHETRY: Ahead on "American Morning," mayors against illegal guns. They're Warning that Al Qaeda is looking for loopholes in our gun laws here in the states. We are going to be joined by New York Mayor Michael Bloomberg here at the CNN headquarters to talk about it in just a moment.
The president calling out Republicans in the budget showdown, warning them to get back to work so the country can avert a crisis with the debt ceiling and pay its bills.
(COMMERCIAL BREAK)
VELSHI: A group of America's mayors are sending a powerful message to Congress about illegal guns, saying they are more than a crime problem. They are now a national security danger.
ROMANS: They even use the words of an Al Qaeda spokesperson in a new PSA.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The latest Al Qaeda plot instructs terrorists on how to buy guns in America.
UNIDENTIFIED MALE: This is a golden opportunity. America is absolutely awash with easily obtainable fireworks. You can go down to a gun show and come away with a fully automatic assault rifle without a background check. So what are you waiting important?
(END VIDEO CLIP)
CHETRY: Wow. Joining us this morning to talk more about this, some one that's fought against this for years, New York Mayor Michael Bloomberg. Good to see you this morning. This gun show loophole, estimated 40 percent of U.S. gun purchases are sold without background checks because of the private sale or gun show loophole. Why has that not been able to close after all these years?
MAYOR MICHAEL BLOOMBERG, (I) NEW YORK CITY: Congress is unwilling to face the fact the second amount doesn't protect terrorists. I don't think anybody thinks Al Qaeda was in the minds of the founding fathers. Have a right to buy guns, protecting the constitution, every state has the right to set their own laws. They do that.
The federal government passed a law saying you can't buy a gun if you are a minor, if you have psychiatric problems, or if you have a criminal record. Then they didn't fund the ATF so that ere is no enforcement of it and they have this gun show loophole where if you say I'm a casual seller, you don't have to do the background check that's required to meet the first set of requirements that I just talked about.
And so people go to gun shows and just buy guns, and sellers go to gun shows. And they are not casual sellers. They can have 200 guns there to sell. The guy you saw in the ad he is not an actor. This is a terrorist. This is a guy we think is hiding in Pakistan, an American converted to become a Muslim. Muslims -- most Muslims aren't terrorists. This guy happens to be an extreme Muslim who is out there and advocating people to buy guns and kill Americans and he says you can just do it right in America. Just walk up to a --
VELSHI: The NRA response to that spot is he's recommending to people who are not part of an organized movement, lone wolves to buy guns. Those lone wolves that may go to a gun show and buy the gun and commit a terrorist attack would not be on a watch list anyway quite possibly.
BLOOMBERG: I don't know that. But what rational reason could you have for not at least trying? It is true that everybody that wants to bring down an airline is not on the terrorist watch list. But to not check before you get on a plane doesn't make any sense. They find some people.
And I if you were on that plane, how would you feel as the -- as you are coming to the end of your life and saying they didn't have the courage to test?
ROMANS: That gets everybody's attention when you talk about terrorists and using our gun laws to get guns. What about -- I want to get your thoughts on the ATF fast and furious program. Which was the U.S. watching these guns --
BLOOMBERG: They were trying to find out where the guns go into next expo and how Mexican drug dealers get them. Mexican drug dealers have killed something like 30,000 people over the years.
ROMANS: Guns they get here. BLOOMBERG: There's no question the guns come from America and we buy their drugs.
ROMANS: Money goes to fund more drugs and more guns.
BLOOMBERG: Absolutely. They screwed up. They did a lousy operation. That does not mean we should not stop trying to stop the flow of guns.
CHETRY: But people who advocate for guns right say we have a lot of rules. We have a lot of laws on the books already. They are not enforced. And so --
BLOOMBERG: That's not true in New York City. We can have a record --
CHETRY: Well, you guys have a wonderful -- you have a --
(CROSSTALK)
BLOOMBERG: -- plenty of other cities and states in this country that do a good job, too. America isn't full of bozos. Most people really do a good job stopping it. It's just a handful of people.
CHETRY: But right now what -- their argument is why go after people who just want to enjoy guns on their own and have never done anything illegal, why not enforce what we see -- I mean, on the streets of just read an article of the streets of Newark, you just can buy a gun. You know, quite easily, actually, probably just as easily as you can buy drugs or something else.
BLOOMBERG: Look, the mayor of Newark -- Cory Booker has got a very tough job. So does the mayor of every city of this country. Even if you don't get everybody, why would you not want to stop those people who have psychiatric problems, or minors, or have criminal records? We have a federal law that says they can't buy guns. But it doesn't apply to gun shows where 40 percent of the guns as you pointed out come from.
ALI VELSHI, CNN ANCHOR: Yes.
BLOOMBERG: There's no reason not to enforce the existing law. And, incidentally, you also want to close what they call a terrorist gap and that is, if you can't fly, you should be added to that category of minor --
CHETRY: Of people who can't own guns.
(CROSSTALK)
VELSHI: All right. Mayor Bloomberg, good to see you. Thanks very much for joining us.
BLOOMBERG: Thanks for having me. This is real. This is a real terrorist.
VELSHI: All right.
CHETRY: A very powerful PSA. Thank you so much, Mr. Mayor.
Sixteen minutes past the hour. Time to check in with our Rob Marciano. He has a look at the forecast across the country.
Hey, Rob.
ROB MARCIANO, AMS METEOROLOGIST: Good morning, guys.
I just have to give you an update on tropical storm Arlene making landfall right now across Mexico, between Tusfan (ph) and Tampico, winds of 65 miles an hour, gusting to 75. So, this is a strong tropical storm. And because it's making landfall now, we don't expect it to strengthen into a hurricane. Nonetheless, there are some hurricane warnings that are posted.
The track of this as it moves west to the southwest, so we're now looking forward to really bringing beneficial rains to Texas. Mexico has its own drought going on. But you get into the hilly terrain and we are going to talk -- probably see flash flooding in spots, maybe even some mudslides, could see 10-plus inches in some of the areas.
And again, this moisture really not going to get up to where we need it, northern parts of Texas, New Mexico and Arizona. Critical fire danger here, not only because of winds but maybe dry lightning in those areas and the heat building back into the Central Plains today.
Meanwhile, still fairly comfortable across the Northeast as that cool front came through -- 81 degrees, low level humidity in New York City. And there's your heat in Kansas and Dallas with high temperatures getting close to 100.
Back to you, guys, in New York. Enjoy a nice day.
ROMANS: Hot, hot, hot.
VELSHI: All right. Rob, thanks a million.
MARCIANO: You bet.
ROMANS: Up next on AMERICAN MORNING, it appears the banks complain how much they charge retailers every time you use your debit card, those complaints paid off. We'll explain.
CHETRY: Also, the question of the day. We want to hear from you. President Obama telling Congress: do your job. Forget vacation. Let's get a deal on raising the government's debt ceiling.
Will the two sides be able to solve the debt issue?
Tell us what you think. Send us an e-mail, tweet, or tell us on Facebook. We're going to be reading your comments in about 30 minutes.
(COMMERCIAL BREAK)
VELSHI: Twenty-two minutes after the hour. Minding your business this morning.
U.S. stocks headed for a fourth day of gains today. The Dow, NASDAQ, and S&P 500 al closed higher. Those are yesterday's closing numbers. But news from Greece pushed stocks higher. But investors remain wary.
Now that the vote passed on the five-year austerity package, Greek parliament votes today on how to implement it. The country needs $17 billion in emergency funds by mid-July to avoid defaulting on its debt.
The Labor Department in the United States saying unemployment rates rose last month in more than half of the country's largest cities. That's due to a weak private sector hiring and natural disasters and in just about two hours, fresh -- about one hour, fresh initial jobless claim numbers come out.
If you live in California, starting tomorrow, you'll be slapped with a new Internet sales tax on products purchased online from companies that are based outside of the state. It was passed to help balance the state budget. Amazon.com dropping 10,000 of its California based associates due to the new tax.
Don't forget, for the very latest news about your money, check out the all-new CNNMoney.com.
AMERICAN MORNING, right back after the break.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. Twenty-six minutes past the hour right now.
This morning, we are taking an in-depth look at the changing face of America. In towns and in cities across the nation, minority populations are climbing. And their growing presence is helping cities like San Antonio, for example, prosper.
Our Ed Lavandera is live in San Antonio, Texas, today with more for us.
Hey, Ed.
ED LAVANDERA, CNN CORRESPONDENT: Good morning, Kiran.
We know across the country where you've seen a growth of the Latino population in places where they're not used to seeing a whole lot of Latinos kind of created a kind of cultural problem in many places across the country. But here in San Antonio, they say that's just the way it's always been.
(BEGIN VIDEOTAPE)
LAVANDERA (voice-over): It's fitting that for almost 300 years, this very spot in the San Fernando Cathedral has been the epicenter of San Antonio. Inside this Spanish-inspired church rested tombs of Texas' Anglo heroes like Davy Crockett. In this city, cultural history is intertwined and San Antonio's mayor, Julian Castro, says that puts his city on the cutting edge today.
MAYOR JULIAN CASTRO, SAN ANTONIO, TX: There's been this terrific confluence of cultures and this great Texas history, all of that has come together here in present day San Antonio to provide a backdrop of a city that's one where people live well together, they work well together.
JORGE CORTEZ, MI TIERRA RESTAURANT: My family and my father started the restaurant.
LAVANDERA: When Jorge Cortez's grandparents immigrated to the United States, they looked for work in the historic market square.
CORTEZ: Market square is like the Ellis Island of San Antonio.
LAVANDERA: This is where the Cortez family launched their Mi Tierra Restaurant empire. They have three massive restaurants and 600 employees. A large mural honoring his family hangs inside. He calls it the American dream.
CORTEZ: I had a dream of doing something to honor this American dream of my father.
LAVANDERA: Cortez says in San Antonio, you'll find the Latino population blossoming.
CORTEZ: I feel that we need to invest and reinvest in this American Dream. I feel the Latinos are going to have a lot to do with what this great country is all about.
LAVANDERA: That influence is only growing. San Antonio is now the seventh largest city in the country, 63 percent of the population is Latino.
RAMIRO CAVAZOS, HISPANIC CHAMBER OF COMMERCE: I think one of the best kept secrets in America --
LAVANDERA: Ramiro Cavazos of the Hispanic Chamber of Commerce says it's the city's creative business spirit that's driving growth. He says 85 percent of the city's jobs are created by businesses with fewer than 20 employees.
CAVAZOS: We work harder. I believe because we don't think we are a major city. So if anything, we -- we are hungry as a marketplace and I believe that's what's sustaining us for -- and will sustain us for years to come.
LAVANDERA: But Mayor Julian Castro says San Antonio still has big dreams to reach.
CASTRO: What we want for San Antonio is for this city to be a brain power community that's the liveliest city in the United States.
(END VIDEOTAPE)
LAVANDERA: And, Kiran, the mayor is also talking about diversifying the economy. There's a huge military presence here in San Antonio, medical health care industry that's blossoming as well. So, he really points to all of that that's really making a difference.
The unemployment rate in this city, 2 percent below the national average. And that's why you hear some people say this is one of the best kept secrets in America -- Kiran.
CHETRY: And thanks to you, it's out. And people know about it. But it is nice to be able to highlight, you know, some of the good things as we talked about a lot of not so good things happening now in the country.
LAVANDERA: Absolutely. And I think, you know, you stand here in front of the Alamo and saw a lot of tourists coming through. They expect many more this Fourth of July weekend. So, people kind of finding out about it on their own as well.
CHETRY: All right. Ed Lavandera, good to see you this morning. Thanks.
LAVANDERA: You got it.
VELSHI: Have you been to the Alamo?
CHETRY: No.
VELSHI: It's smaller than I expected. It would be given it was such a grand story. The bus was parked where it was. But it's a great place. San Antonio is a great town. It was a lot of fun.
ROMANS: Yes, it's a nice town. Really nice town.
All right. Top stories this morning:
Terror leader taken out. A NATO airstrike killing the leader of a militant group tied to al Qaeda in Afghanistan. He was wanted in connection with Tuesday's deadly attack at Kabul's Hotel Intercontinental. Twelve victims and in all nine attackers were killed in that fight.
Tropical Storm Arlene makes landfall in Mexico. The first named storm of the Atlantic hurricane season, folks. The National Hurricane Center says parts of Mexico could see 15 inches of rain.
New this hour, the FBI trying to find out how a Nigerian man slip on board a flight in New York and made it all the way to L.A. KABC reports the crew of the Virgin Atlantic flight didn't know an extra passenger was onboard until they touched down in Los Angeles.
Investigators say, get this, he didn't have a valid passport. He was carrying several expired boarding passes and was taken into custody. Law enforcement official tells us there is nothing at this point to indicate terrorism.
VELSHI: President Obama is issuing a warning. Yellow light he said is flashing when it comes to passing legislation so America can pay its bills.
The deadline for passing that legislation is a little more than one month from today. Yesterday, the president sounded downright impatient saying he compromised by agreeing to cut spending. But Republicans won't budge when it comes to raising taxes on the wealthy.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: They need to do their job. Now is the time to go ahead and make the tough choices. That's why they are called leaders.
They are in one week and they are out one week. Then they are saying Obama has got to step in. You need to be here. I have been here. I have been doing Afghanistan and Bin Laden and the Greek crisis. You stay here. Let's get it done.
(END VIDEO CLIP)
VELSHI: Our Jill Dougherty is live at the White House. Jill, it seems across the board this morning the papers, the president's tone, combative, something we haven't seen in a while.
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Yes. I mean, forget no drama Obama. Ali, you really have to say in the sound bite war and, of course, reporters love sound bites the president had a lot of them and he started with one about Sasha and Malia, his daughters, 10 and 13.
Saying, look, they don't have to pull all-nighters to get their school work done. So why should the Congress? But the frustration is pretty evident because now it is the president who is leading these discussions and negotiations with the Republicans after that kind of quiet diplomacy with Vice President Biden.
They are not getting very far. As you mentioned, taxes totally divided on that. Republicans saying, no way. Democrats and the president saying, you cannot do this unless you have revenue increases.
Then the other, the deadline of raising the debt ceiling and the president in an answer to our own Jessica Yellin who was here at the White House for her first day yesterday saying, what would happen if they don't reach that deadline, if they don't raise the debt ceiling.
(BEGIN VIDEO CLIP)
PRESIDENT OBAMA: We don't know how capital markets will react. But if capital markets suddenly decide you know what, the U.S. government doesn't pay its bills. So we are going to start pulling our money out.
And the U.S. Treasury has to start to raise interest rates in order to attract more money to pay off our bills, that means higher interest rates for businesses and that means higher interest rates for consumers. So, all of the head winds that we are experiencing in terms of the recovery will get worse, that's not my opinion. I think that's a consensus opinion.
(END VIDEO CLIP)
DOUGHERTY: And Mr. Obama also saying that legislators should simply stick around town and not take their fourth of July vacations. Meanwhile, the Republicans are pushing for a balanced budget amendment. Ali --
VELSHI: Jill, thanks very much. We will continue to cover developments in this story obviously for the next month as we get closer to that drop dead deadline.
CHETRY: That right. The question of our day, which we would be asking our viewers all morning, the president telling Congress get to work. But will both sides be able to solve this debt issue?
ROMANS: Here is what some of you are saying. Naeem on Facebook says, "Knowing the Republican Party and their ploy to discredit anything this president is doing, they will play politics on this issue to the end to further their own agenda."
VELSHI: Jo on Facebook says, "Time to fix the freaking tax code. Close loopholes and ensure everyone pays their share. Yes, it's asinine to think you can borrow more to get out of debt while you live the same lifestyle."
CHETRY: That's for sure. Kyle on Facebook, "Until Congress has term limits, we will be stuck with career politicians who are too scared to make tough decisions for fear of not being re-elected."
VELSHI: Keep your comments coming. Send us an e-mail, a tweet, tell us on Facebook, we're going to read some more of your thoughts later on in the show.
President Obama, by the way, has made it known that he's nervous about his daughter, Malia becoming a teenager next month, which is just -- tomorrow, right?
He's apparently dreading that moment so much that he got his daughter's age wrong. Not once but twice during yesterday's press conference. Listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Malia and Sasha generally finish their homework a day ahead of time. Malia is 13. Sasha is 10. It is impressive. They don't wait until the night before. They are not pulling all-nighters. They are 13 and 10.
(END VIDEO CLIP)
VELSHI: OK. So here's the thing. Here's the thing. Malia turns 13 on July fourth. ROMANS: He was rounding up.
VELSHI: I mean, 365 days. She turns 13 in 3. That's completely fair. Only kids say that I'm 12 and 7/8.
ROMANS: He's like I'm going to have a 13-year-old and has been preparing himself --
VELSHI: I did hear somebody say that if -- Michele Bachmann had done that, they would be all over her about being inaccurate.
ROMANS: Exactly. We politicize everything that comes out of anybody's mouth.
VELSHI: So you think it has more to do with the fact there --
ROMANS: I think --
CHETRY: His daughter is getting older. Being 13, you are finally a teenager. You know, when you are 12, you are a tween. There is a big difference in kid world.
VELSHI: All right.
CHETRY: Ali, by the way, only one of the three of us that did pull all-nighters.
VELSHI: I was more distracted by that. What's wrong with the all- nighters?
ROMANS: Made it through college.
VELSHI: Why the president making me feel bad.
CHETRY: Rhode Island state senator probing a bill to legalize same- sex unions. That legislation has already passed the state House and it now heads to the desk of Governor Chafey who says he will sign it.
Lawmakers say the bill is a compromise. It's intended to provide same-sex couples with the same rights and benefits enjoyed by married couples while at the same not altering the legal definition of marriage.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Visitation rights, medical decision making powers, equal state tax treatment, we have moved one step in the right direction to ensuring that individuals receive equal rights and protections under the law.
UNIDENTIFIED MALE: I'm going to vote against this bill because I believe that every American is equal under the law.
UNIDENTIFIED FEMALE: This is somewhat of a compromise. I don't think anybody is truly happy, but I do think that it is a step in the right direction. (END VIDEO CLIP)
CHETRY: If the bill becomes law it would make Rhode Island the fifth state to allow civil unions. The other states include New Jersey, Illinois, Delaware, and Hawaii.
ROMANS: All right, a closer look at our states in crisis now. Another budget fight with kids caught in the middle. In Wisconsin, Milwaukee public schools say that it will lay off 519 staff members, including 354 teachers because $84 million in state cuts and the system's efforts to control costs.
(BEGIN VIDEO CLIP)
DR. GREGORY THORNTON, MILWAUKEE PUBLIC SCHOOLS SUPERINTENDENT: I'm extremely troubled by the fact of the 354, 347 are elementary school teachers. That's the foundation of our work.
I'm going to lose about 80 teachers from the Arts. That's problematic for us. The Arts are big. It is balance -- a balanced diet that I think our young people need and deserve.
It's a standard care that we must provide. Thirty eight Art teachers will certainly be part of this in addition to 13 Music teachers, in addition to 27 Physical Education teachers.
(END VIDEO CLIP)
ROMANS: For students, of course, class sizes will be larger. Some class sizes frankly will be doubling. Older textbooks will not be replaced.
Over at the border in Minnesota, government shutdown growing more likely by the hour. The governor and Republican lawmakers there have until tomorrow to bring on a budget for the 2012 fiscal year without a last-minimum deal many states services will be suspended.
Highway rest stops will close just in time for the July fourth weekend. Road construction will stop. Job training and funding for the homeless will be cut off. It is a crisis playing out in states across the nation.
VELSHI: Yes, and as far as the importance of things, obviously, schools are more important than rest stops. As a guy that likes the road, I like rest stops. It's a big part of the drive across the country.
CHETRY: They are there when you need them.
VELSHI: That's right, exactly.
CHETRY: Up next on AMERICAN MORNING, could that morning cup of coffee you are enjoying -- wait. This means that coffee is good today.
VELSHI: Excellent. Could coffee combat Alzheimer's?
CHETRY: I hope so.
ROMANS: Will and Kate in Canada. The royal newlyweds kicking off their first official foreign trip today.
VELSHI: He played the dude from Napster in a social network. Now, can Justin Timberlake save Myspace? It's 39 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: It's 42 minutes past the hour. Welcome back. New political campaign season is money for late night comics.
ROMANS: That's right. Right now, Jay Leno is across the pond talking cars and, you know, presidential punch lines. Our Zain Verjee sat down with him in an interview.
Zain joins us now live from London. Good morning, Zain.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Good morning, guys. It was so much fun. He was absolutely great, very cool to hang out with.
I asked him who would give him the best fodder important the presidential campaign. His answer was Sarah Palin. Listen.
(BEGIN VIDEO CLIP)
JAY LENO, HOST, "TONIGHT SHOW WITH JAY LENO": Yes. She has the fire in the belly I think she said. It is not the fire. It is the air in the head. That's --
VERJEE: The air in the head.
LENO: The air in the head. I think that's -- fire in the belly is not a problem.
VERJEE: What about the titanium in the spine?
LENO: That just happen today. I just saw that.
VERJEE: Michele Bachmann on Fox says that she's got the titanium in the spine.
LENO: You know, that could be -- a really bad porn movie. I don't know what it means. I don't want to go there.
(END VIDEO CLIP)
VERJEE: We had a good laugh about a lot of issues. He talked about the best kind of material that he uses. He says it has to be men behaving badly. He was here. He was invited by Jaguar guys and he was really excited because he got to drive one of Princess Diana's old cars and he talked a lot about the automobile industry here.
What we had -- a lot of fun. I even introduced him to Kenyan Motor Transportations, which he hadn't heard about and he may include it in his collections. A toktok (ph) and (inaudible), that's a three-wheel scooter and wheelbarrow dragged around by a guy. He hadn't heard of those.
VELSHI: Wow. She said it like she says them every day.
ROMANS: Wow. We have seen Will and Kate at Wimbledon this week. Another royal was spotted yesterday without one of her famous hats.
VERJEE: Everyone is over at Wimbledon. It is the place to be. Beatrice, Princess Beatrice was there without that hideous hat that she had worn for the royal wedding and got so much flack.
The rumor is that she's actually hired a new public and someone to dress her a lot better as well. Emma Watson's stylist, actually, of Hermione and Harry Potter.
But, yes, there she is. She was watching the women's quarterfinals at Wimbledon. It poured with rain, the roof had to go up. And that's her boyfriend, Dave Clark. She's been making the rounds at a lot of the society events here. She was at Ascot and then she was at another Darby there and hanging out with Will and Kate a lot.
But there she is, Princess Beatrice having fun.
ROMANS: All right. Zain Verjee. Thank you so much, Zain.
CHETRY: Pippa was there also with her old boyfriend who -- there were rumors that they weren't together. I think Alex Loudon (ph).
ROMANS: Right.
CHETRY: And they said she was with a new one but she was at Wimbledon with her old one. So, no Prince Harry.
VELSHI: I have a little information. You've heard about this -- you know, this woman who's going to marry the Prince of Monaco?
ROMANS: Yes.
VELSHI: And then she tried to bail, she was found at the airport trying to leave to go back to South Africa or something.
ROMANS: Really?
CHETRY: Runaway bride.
VELSHI: And the Prince had to come to the airport and the wedding's this weekend and it's like a multimillion dollar wedding and --
ROMANS: How do you know all this?
VELSHI: Zain told me this morning. I got a lot of information from Zain. Zain's a royal watcher.
Let's stay on the royal topic. Britain's new -- while you digest that, Britain's royal newlyweds are making their first official trip abroad as the Duke and Duchess.
Prince William and his new bride Catherine leaving now. These are live pictures right now. Where is this, Brian? Is this in Canada or is this Britain? This is Canada, because there's a big Canadian flag there. Oh, it's in Britain. That's a Virgin Airlines -- that's actually the Virgin Airlines tail. Looks like the Canadian flag, red and white. They will get on that plane and I suspect in a few hours they will be in Canada.
CHETRY: You're a wealth of misinformation. Thanks.
(LAUGHTER)
VELSHI: The whole thing about Monaco, by the way, I made that up.
CHETRY: Yes, thanks.
CHETRY: Well, Max Foster, though, is going to set the record straight.
VELSHI: He is in Ottawa.
CHETRY: He is Ottawa this morning.
ROMANS: Oh, please, Max.
CHETRY: How exciting -- excited is Canada to welcome the royal -- the newly minted royal couple?
MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: Yes. Absolutely. There were pictures from Britain. What's interest about that is that they are traveling by Canadian military jets because they are the Canadian royal family, as well as the British royal family. And now they're officially in the hands of the Canadian government as they embark on this tour to Canada.
So they're on their way here. They're going to get here at about 2:00, and then they start a whole raft (ph) and whole series of very quick meetings and events throughout the next eight days.
Here's a sense of what you can expect from their Canadian royal tour.
(BEGIN VIDEOTAPE)
FOSTER (voice-over): This was the welcome Prince William when he traveled to Canada in 1998, the year after his mother, Diana, died. He now returns with his wife.
They arrive in Ottawa for this year's Canada Day celebrations. As the next generation of royals, they're expected to connect with young people.
From the capital, it is on to Quebec. A children's hospital in Montreal. The Citadel in Quebec City. A reminder of their wedding day in Prince Edward Island with a carriage procession through Charlotte Town. As a certain much and rescue pilot Prince William is keen to take part in the demonstration with his world renowned counterparts in Canada. Some risky maneuvers are expected and some nervous royal aides will be watching on. The couple will also take to the water, each in their own dragon boats revealing their competitive streaks. Catherine is a very experienced rower.
From PEI, it's up to the wilderness of the northwest territories. Final stop in Canada is Calgary, Alberta, in time for the stampede. It's all about rodeos, rounding sheep and wagon racing. A rare chance to see royals in cowboy gear, yes, you heard it right.
From Calgary on to California for the start of their U.S. tour, one of the most ambitious royal trips in years.
(END VIDEOTAPE)
FOSTER: So it's a big trip, a very complicated trip, a very ambitious trip also. Lots of frivolous comments around this, of course. Everyone fascinated to hear what Kate's going to be wearing on the trip. No inside track from the palace. She's going to decide herself. We know that. At least she's got a bit of help, her hairdresser coming with her.
I suspect she won't be wearing one of these. I picked this up at a local shop. But there's a certain degree of excitement here.
Ali, not quite your size but I'm sure they will have some available when you return.
VELSHI: Thank you, Max. I lived in Ottawa, actually, for a while. It's a lovely -- the market is just over near you. You can get beaver tails there which are not really beaver tails but they're just fried dough.
ROMANS: Maybe Will and Kate can pick --
VELSHI: And Ottawa summers they say are beautiful both days.
(LAUGHTER)
ROMANS: Thanks, Max Foster. That's very funny.
I do think that it's interesting that she's going to be picking out what she's going to wear. It's a lot of pressure. Imagine being her, how much pressure it is. Everything she wears, people watch.
CHETRY: And everything she wears, there is either a knock or the real thing sold out within moments of her appearing publicly.
Must be nice.
VELSHI: All right. Well, still ahead on AMERICAN MORNING, an FDA panel rejecting arguments a popular cancer drug helps patients live longer or improves the quality of life. So what does this mean for the makers of Avastin? We'll tell you on the other side. (COMMERCIAL BREAK)
VELSHI: I love this story. If you plan to enjoy cold beer in the sun this weekend, put on bug repellant first because a study found drinking beer makes you more attractive to mosquitoes.
ROMANS: What about white wine?
CHETRY: Is it beer in general?
VELSHI: Well, yes. I think mosquitos like booze.
(CROSSTALK)
VELSHI: But French researchers studied it and they studied 43 men -- this isn't the world's biggest study -- 43 men. Mosquitoes were roughly 30 percent more likely to fly towards the guy who drank three cans of beer instead of water.
Maybe because they were more fun.
ROMANS: We could do the study ourselves and maybe --
(CROSSTALK)
VELSHI: Researchers say it could be because beer drinkers are slower to notice them.
(LAUGHTER)
CHETRY: Or they're so drunk they forgot to put on the Deep Woods OFF?
ROMANS: And they don't care.
(CROSSTALK)
ROMANS: A new study shows that a cup of coffee, that one that you're drinking right now, it may actually protect your brain from Alzheimer's. Scientists studying mice with the Alzheimer's gene -- you're going to have to finish because it's so funny here.
VELSHI: This is good. Because if you get -- drink beer you get bitten but if you drink coffee, scientists say that those given the equivalent of four to five cups of caffeinated coffee every few days had an improved meaning. Now previous research has found that caffeine can partially block proteins that clog the brains of Alzheimer's patients.
CHETRY: Right.
VELSHI: I'm going to live my life until they have studied everything and it comes around to my consumption habits.
CHETRY: Right? My dad still tells me not to stand in front of the microwave. I said, no, I think we're OK along those lines.
VELSHI: My wife's definitely all about the -- because I like watching my stuff.
CHETRY: Me too. I sit there and see, oh, it's bubbling up.
VELSHI: Yes, that's totally what I like.
CHETRY: Oh well.
An FDA panel is recommending the drug Avastin lose its approval to treat women with advanced breast cancer even though there are many women who take it who swear by this drug.
VELSHI: Yes, this decision comes after some very, very emotional testimony. This is really something that's getting people very worked up.
Senior medical correspondent Elizabeth Cohen joins us, live.
Elizabeth, tell us what this means. Set the stage for us again. I know you've reported on this as it progresses but tell us what this means.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: What this means is that women who are taking Avastin and believe that it's helping them, their insurance may longer pay for it. And this is a big deal. It costs about $90,000 to get treated with this drug and, of course, if insurance won't pay for it, most women, of course, can't afford that on their own. There was lots of emotional testimony.
Here, for example, is cancer survivor Patricia Howard who truly believes that Avastin saved her life.
(BEGIN VIDEO CLIP)
PATRICIA HOWARD, CANCER PATIENT: I'm not just a piece of anecdotal evidence. I'm a wife, mother, sister, aunt and grammy and a friend and vibrant human being worthy of the dignity of being treated as such. I never thought in the United States I would have to beg for a drug that is keeping me and many others alive. Please approve Avastin as a treatment of my disease. What if I was your wife, your mother, your sister, your friend and what if I were your grammy?
(END VIDEO CLIP)
COHEN: But, on the other hand, you can take a look at this. Some women say, look, this drug really does not help. It doesn't do anything and there's plenty of evidence that shows that this drug really doesn't do much.
So let's hear from another survivor who said that this drug gives false hope.
(BEGIN VIDEO CLIP)
CHRISTINE BRUNSWICK, V.P. NATIONAL BREAST CANCER COALITION: It does not significantly keep the disease at bay. It surely is not a cure and it does not extend life. The drug does raise false expectations and does detract from focusing on other research that may produce effective life-saving drugs.
(END VIDEO CLIP)
COHEN: So as you can see, even cancer survivors have very, very different ideas about what this drug can do.
CHETRY: So just to be clear, though, and I want you to tell us what the drug maker said. It is still available, it just won't be covered?
VELSHI: For some patients.
COHEN: Right. Avastin is available for other drugs. So any doctor who wants to prescribe it for breast cancer, they can prescribe this drug if they want to, but because of this FDA panel recommendation, as things go down the line, there is a really good chance that insurance companies are going to say we won't pay for it for advanced breast cancer patients because the FDA has said it doesn't appear to work.
So it really -- when it comes down to it, this is a money issue. It is such an expensive drug -- $90,000 for treatment -- that, of course, it becomes, you know, impractical. No one's going to be able to afford it practically because it's so expensive.
CHETRY: Sad, sad situation. All right. Elizabeth Cohen for us. Thanks so much.
COHEN: Thanks.
VELSHI: And for all the latest health news, go to the CNN.com/health.
AMERICAN MORNING back after a break with your top stories. Fifty- eight minutes after the hour.
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