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American Morning: Wake Up Call
Debt Ceiling Talks; New Credit Score Rules; Yellowstone Spill Plan
Aired July 11, 2011 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALI VELSHI, CNN ANCHOR: Good morning. It's Monday, July 11th. This is your A.M.: WAKE-UP CALL.
I'm Ali Velshi, joining you live this morning from New York.
Let us talk about the issue that will not leave us alone. At 11:00 Eastern this morning, the president will update you, me, and the rest of the nation on the debt ceiling talks.
Here's the debt clock, by the way. The national debt clock has numbers that would baffle Einstein, it's on two lines. The regular clock, by the way, keeps ticking toward the August 2nd default date.
The president has given lawmakers nine more days to make a deal because they need time to get the legislation together to make it work.
Here's what the treasury secretary had to say about this battle.
(BEGIN VIDEO CLIP)
TIMOTHY GEITHNER, TREASURY SECRETARY: It's political moment, people are trying to get attention, they say really amazing thing. But there's no credible argument, no responsible leader would say the United States of America, for the first time in its history, should not pay its bills and meet its obligations. That would be catastrophic for the economy. Everybody understands that. There's just a lot of political theater in this business.
(END VIDEO CLIP)
VELSHI: The government, by the way, has already maxed out its borrowing at $14.3 trillion.
Here's another story we're following today -- an explosion at a naval base in Cyprus. It's left at least 12 soldiers dead and 30 injured. The blast was so powerful it knocked out electricity for about one third of the island. Apparently, the trouble started when a cargo ship loaded with ammunition caught fire.
Space, as we know, is the final frontier. It's also a little bit messy. NASA believes a chunk of space debris could get close to the space shuttle Atlantis and the International Space Station this week. The debris is part of an old satellite. You might remember a couple of weeks ago, the International Space Station crew had to take shelter in two space capsules because of a close call with space junk.
Britain's "News of the World" tabloid, it's kaput, done, "Thank You & Goodbye," after 168 years, brought down by a phone-hacking scandal, but the story goes on. The deputy minister will meet with the family of Milly Dowler. She was the teen girl who was murdered. People working for the paper allegedly hacked her voice mail after she disappeared, deleting messages from her full voicemail box after listening to them, giving Milly's family and friends a false impression that she was still alive.
The Dowlers will meet with other British bigwigs this week. Their lawyer says the Dowlers were very upset with the paper's, quote, "self-congratulatory final issue."
Here's what the editor had to say on the last day.
(BEGIN VIDEO CLIP)
COLIN MYLER, NEWS OF THE WORLD EDITOR: After a really difficult day have produced, in professional way, a wonderful newspaper.
(END VIDEO CLIP)
VELSHI: Now, there are accusations that the newspaper also bribed police officers and hacked the phone messages of terrorist victims.
The NTSA says it will take a long time to investigate a small crash in Alabama Saturday. It will take a long time because the wreckage is so deep in the woods. A couple and five of their children were killed. The father was piloting the plane. They apparently got within two miles of a runway.
If and when you are on Facebook today, do not -- repeat -- do not click on a link that promises leaked video of Casey Anthony confessing to a lawyer. It is a scam. Some folks are trying to use the fascination with the case to weasel their way into Facebook users' networks. Also that true by the way, a report that says Jerry Springer offered Anthony and her family $1 million to be on his show. Springer's people say they never made an offer, they never will.
The U.S. is holding $800 million in military aid to Pakistan. They're withholding it. It's a smackdown for Pakistan expelling U.S. military trainers. And U.S. officials hope holding back all that money will pressure Pakistan to crack down harder on militants and terrorists.
So, what's the best way to describe the relationship with Pakistan right now?
(BEGIN VIDEO CLIP)
BILL DALEY, WHITE HOUSE CHIEF OF STAFF: They have been an important ally in the fight on terrorism. They've been the victim of enormous amounts of terrorism. But right now, they have taken steps that have given us reason to pause on some of the aid which we were giving to their military and we're trying to work through that. It's a complicated relationship in a very difficult, complicated part of the world.
(END VIDEO CLIP)
VELSHI: And here's a figure for you, $37 billion. According to Moody's Analytics, that much money could vanish this year from U.S. pockets. Moody's says nearly $2 out of $10 Americans took in last year came in from government in the form of jobless benefits, food stamps and Social Security and things like that. Now, when those extended benefits go away by the end of the year, some $37 billion won't go into people's accounts and hence won't go into the economy.
Let's go to Kristie Lu Stout for your morning hit from Hong Kong.
Kristie, good morning. The beginning of second quarter earnings season --
KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR: Good morning, Ali.
VELSHI: -- begins after our markets close here this evening. Are you getting any reaction to that already on Asian markets?
STOUT: Well, this is what we're looking at in European markets so far. European markets have been down. Thanks to the bad payroll report out Friday that came out last week in the U.S. Fears about the Euro Zone debt crisis haven't been helping either.
Now, to answer your question, in Asia, it's been pretty downbeat here in the stock markets. We've seen a pretty hefty selloff across much of the region. That is again, you know, reaction to what happened last week, that dismal U.S. jobs report.
And, also, on top of that, another inflation rise in China. Despite Beijing's continued efforts to pull price rises and inflation in China soars to a three-year high in June.
Now, banking stocks across the region, there are worries that European debt, that crisis could spread to Italy.
Now, in Japan, the striking yen is hurting exporters. Automakers are losing ground there.
Meanwhile in Sydney, the main Aussie benchmark shed more than 1 1/2 percentage as investors absorbed the details of a new carbon tax plan Down Under -- Ali.
VELSHI: All right. Let's talk about this Italy think you just mentioned -- more European debt. What's going on in Italy?
STOUT: Yes. Well, top E.U. officials, they are set to meet later today in Brussels. Of course, they're going to discuss Greece and the second aid package for Greece. But there's also speculation that Italy will be a topic of discussion. Now, there are growing worries that the Italian economy, which is far larger than that of Greece, Portugal and Ireland combined maybe be pulled into the debt crisis as well. Now, on Friday, shares of Italy's largest bank, that's Unicredit, it fell 8 percent. And the main Italian index dropped 3.5 percent on fears about the overall situation in Italy.
But a European council spokesman denies that today's event is a crisis meeting -- Ali.
VELSHI: Right. Well, we'll keep a close eye on this. This is a problem that seems to not go away.
Kristie Lu Stout in Hong Kong, we will check in with you a little later in the show. Thank you so much, Kristie.
All right. Kristie, while you're there, just stick around for this. The people who work for Adaptive Computing in Utah celebrate their -- surpassing of their 2010 revenue goal. Cake wasn't enough for them, Kristie. They blew up their sales V.P.'s car. He wasn't in it by the way.
The car, just in case you can still make it out there, is a 1995 Teal Mitsubishi Mirage which some say it looks better after they blew it up than it did beforehand. Employees say it was a real moral boost.
This was in Utah, Kristie. You're in Hong Kong. I'm New York. You can't blow up people's car on those cities. Too much stuff around.
STOUT: No, you can't. But I can imagine why it's a real moral boost. I mean, that is the ultimate team-bonding experience. I mean, who wants to (INAUDIBLE) anymore? If you can blow something up, you know, your boss' car, your producer's car, he drives a Prius here in Hong Kong -- I mean, that's a real morale boost.
VELSHI: All right. I'll make sure I'm around when you're celebrating something. Kristie, good to see you my friend. We will check in with you a little later on the show. Kristie Lu Stout, joining us from Hong Kong.
Let's go to Atlanta now. Reynolds Wolf is checking out the weather situation.
It is hot. But does that give us any flight delays this morning?
REYNOLDS WOLF, AMS METEOROLOGIST: Oy vey. It is roasting out there, Ali, in parts of the nation. We're going to talk about some of that coming up in a few moments.
Delays as you mentioned, we're going to have plenty of those especially in spots like Chicago and Detroit. The big culprit: thunderstorms, lot of them already. We have some widespread thunderstorm across parts of the Midwest this morning.
Major delays possibly over an hour. Flight delays, that's not flight congestion, that is flight constipation. That is horrible. Also, expect some backups in places like Tampa, Miami, due to afternoon thunder boomers. Same deal in Denver and in San Francisco, the story is going to be the morning fog, giving way to some strong winds into the afternoon. Delays just under an hour.
Meanwhile, again, the heat will continue through much of the nation's midsection, all the way up in parts of the central plains, possibly northern plains by late afternoon. Scattered storms across the four corners, and afternoon thunderstorms may give a few delays in parts of the Southeast as well.
Ali, let's pitch it right back to you.
VELSHI: Reynolds, thank you so much. Good to see you.
I want to bring you up to speed on "Transformers" weekend movie. The box office taking -- "Transformers" continues to crush the box office competition. Now, it's become the biggest hit of 2011. See how it stacks up against its competition when we come back.
And, before we go, we couldn't resist making this the quote of the day. Guess who said this, quote, "Didn't resist arrest. I'm in a neck brace. How am I going to resist arrest?"
Who said? I'll tell you right after the break.
It's nine minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: All right. Thirteen minutes after the hour.
Pacman Jones, the pro-football player, confirming through -- coming through with today's quote of the day. Police in Cincinnati arrests Jones in bar on Sunday morning. They say he was screaming profanities, then resisted arrest. Reporters caught up with Jones after he was released from jail.
(BEGIN VIDEO CLIP)
REPORTER: Court documents said you resisted arrest.
ADAM "PACMAN" JONES, CINCINNATI BENGALS PLAYER: I didn't resist arrest. I'm in a neck brace. How am I going to resist arrest?
(END VIDEO CLIP)
VELSHI: A student at the University of South Alabama reportedly admits to killing a man inside a dorm room. Nineteen-year-old Brandon Ajizadeh was arrested early yesterday after placing a frantic call to campus police. When officers got to the Delta 6 dorm, they say they found a man stabbed to death. The victim is not a student at the university but police say he knew the suspect.
Kidnapping victim Jaycee Dugard said she did what she had to do to survive during her 18 years of captivity. She was snatched in 1991 at the age of 11 by a convicted sex offender. Phillip Garrido and his wife Nancy held Dugard and later her daughters in hidden compound of sheds and tarps in their backyard until the year 2009. Now, at the age of 31, Jaycee is opening up about how she got by.
(BEGIN VIDEO CLIP)
JAYCEE DUGARD, KIDNAPPING VICTIM: Time is hard to judge, but there's a switch to shut off.
DIANE SAWYER, ABC NEWS: Just go someplace else.
DUGARD: Just went someplace e else.
(END VIDEO CLIP)
VELSHI: Dugard's book is "A Stolen Life." It's out -- it's due out tomorrow.
Imagine this inn that we're going to look at minus the gigantic flames. Does it look familiar? It's from the "Twilight" movies. Oregon's the Viewpoint Inn caught fire over the weekend, still not clear how. But firefighters say no one was hurt.
Tell your teens not to worry. Bella and Edward are just fine.
The latest "Transformers" movie is the biggest hit so far this year. Optimus Prime -- they must be proud.
(MOVIE CLIP PLAYS)
VELSHI: "Transformers: Dark of the Moon" topped the box office for a second straight week, bringing in an estimated $47 million since Friday. The total haul is, so far, $261 million. That means it dethrones "The Hangover 2" as the biggest movie of 2011.
Time now for our conversation with Tim Farley. He's the host of "Morning Briefing" on Sirius XM POTUS, live from Washington.
Tim, can we just rewind the conversation that we had almost every day last week about debt ceiling talks? Or is today's actually different?
TIM FARLEY, "MORNING BRIEFING," SIRIUS XM POTUS: It's Groundhog Day. You're Bill Murray and we're making our way through this.
Yes, the development, obviously, is that the president is having a press conference today and maybe we'll take some questions on this. And I think the really grand deal is turning into something that David Gergen said was going to happen all along. And that is that there will probably be a mini deal which will maybe take us up to the election next year.
But some of the serious problems are not going to be taken care of, at least in the short term, Ali.
VELSHI: All right. We're going to keep our eye on that. Here's another one for you, Tim. A social conservative group put out this marriage pledge that they asked a number of people to sign, presidential candidates Michele Bachmann and Rick Santorum both signed. Now, there's this controversial part in it that they want to pull out.
Here's the part. It says, "Slavery had a disastrous impact on African-American families, yet sadly a child born into slavery in 1860 was more likely to be raised by his mother and father in a two-parent household than was an African-American baby born after the election of the USA's first African-American president."
Apparently, they got some flak from that and they're taking it out?
FARLEY: Understood that they would get some flak trying to say that, for some reason, that slaves were better off under slavery than they would be with gay marriage being allowed.
Bachmann campaign quoted on "Politico" saying she'd only signed the candidate vow, that's the only part that she endorsed, and not the preamble, which included that phrase you were just mentioning.
On the other hand, they also said that slavery is horrible and economic enslavement is also horrible.
Rick Santorum also signed it.
One has to wonder, though, Ali, whether this will be a major problem for either one of these candidates who have pretty much been pretty right wing when it comes to faith and morals and social issues. It probably won't cost them at all.
VELSHI: Not likely to hurt them amongst their own supporters, I guess, is the point they're making because their supporters tend to be fairly conservative in their views.
All right. Tim, maybe tomorrow, we'll be able to say something has really developed in the debt ceiling talks. The president is holding press conference later on today. He's giving them a deadline. He says they got nine days to get this together. So, that means you and I have eight days to talk about it some more.
Tim Farley, good to see you. Good luck on the show this morning. Tim Farley --
(CROSSTALK)
VELSHI: Yes.
All right. Developing in just the last few hours, officials order a new round of safety tests for Japan's nuclear plants. I'll tell you what they're doing about it.
But before you go, be sure to take time to brighten someone's day today why? Because it is, I'm not kidding, National Cheer Up the Lonely Day. Go face to face time is best to go, by the way. A phone call was also OK.
Don't just text somebody, not just an email. Phone or go see someone. National Cheer Up the Lonely Day.
It's 18 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Twenty minutes after the hour.
Here are three things you need on your radar today:
First, debt talks. President Obama and Congress try to come to a resolution about the debt ceiling. At 11:00 Eastern this morning, the president will hold a news conference on reducing the deficit.
Also at 11:00 this morning, Tiger Woods will make an announcement on the Golf Channel. No word on what he's expected to say.
And this week, key companies will report their second quarter results. Keep an eye on Alcoa, JPMorgan Chase, Citigroup and Google among others.
The Japanese government says there will be a new round of safety tests for that country's nuclear plants. This comes just days after the government said it would put every nuclear plant through stress test. They've basically got an extra layer of testing to restore public confidence post-earthquake.
There was, by the way, another earthquake off Japan's coast yesterday, by the way. It caused more jitters than problem. Japan has 54 nuclear reactors, but only 19 of them are operating right now.
Defense Secretary Leon Panetta has been in Baghdad. He said Iran has been sending weapons into Iraq and they've been hurting the U.S. military. Listen.
(BEGIN VIDEO CLIP)
LEON PANETTA, DEFENSE SECRETARY: I would like for Iraq to exert more of an effort to go after those that -- those extremists that are making use of these weapons. We have been big partners. They have a responsibility to be able to protect against that kind of an attack occurring.
(END VIDEO CLIP)
VELSHI: June was the deadliest month for U.S. troops in Iraq since 2008.
Well, many are warning about tough road ahead for South Sudan, a country now just two days old. On Saturday, thousand celebrated their independence in a massive ceremony. North and South Sudan have yet to reach agreement on borders, oil, or the status of their respective staff of citizens. The U.N. Security Council plans to send up to 7,000 peacekeepers and 900 uniformed police to the brand-new country. Prince William and his wife Catherine are heading back to London after whirlwind tour of North America. They spend three days in southern California, mixing business, charity and Hollywood glitz. After a Saturday polo match and red carpet gala, the couple spent Sunday visiting L.A.'s Skid Row, where they threw themselves into an art class for underprivileged kids. Final stop is a job fair for veterans.
Let's go around the world.
Zain Verjee joining us now from London.
Zain, there's been a boat that's capsized in Russia. Tell us what's going on there.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Hi, Ali.
Yes, I mean imagine going with your family or your friends or some tourists catching a boat just for fun down the River Volga and, all of a sudden, it just capsizes and so many people are missing. Nobody knows the cause of what exactly happened here, but search and rescue divers are out there. They're saying more than a hundred people are missing and the chances of anyone surviving are slim to none.
This is the problem, many say, Ali, where a lot of these old Soviet- style boats and they also have planes and trains as well. And this particular boat that went down is said to have had a lot of mechanical problems. They had initially canceled the trip, had broken down on a cruise, passengers have complained.
But this is really a tragic situation. And it seems as though those missing are likely dead.
VELSHI: All right. We'll stay on top of that with you.
Let's also go to Australia now. Tell me about a new law that if passed would require Muslim women to lift their veils when police demand it.
VERJEE: Right. This is a big fight brewing in Australia. Basically, women who were the nicab or cover their faces are totally have been told if the police tell you to lift you veil, you have to do it, if you don't, you get a year of jail time, as well as a huge fine.
So, the fight is on the one hand, people that are saying this is culturally insensitive. They should be allowed their right to religious freedom. On the other hand, the government and the police forces are saying, well, this is about security here.
The thing that's been happening here, Ali, is that Australia has been relaxing its immigration law, so you've had this huge influx of Muslims that have come into Australia and that's led to all these cultural clashes.
What we're talking about here is Australia has a population of something like 23 million people, about 400,000 are Muslim. And this would only affect about 2,000 women in Australia who wear the veil.
VELSHI: All right. A bit of a tempest in a teacup, but we'll see where it goes.
Zain, stick around for this. You must have being watching this. The U.S. beating Brazil in the Women's World Cup quarterfinal. What a stunner of the game. It was 123 minutes into the game before we even got a tie breaker.
Look at this woman, Abby Wambach. She scored a dramatic header in the last minute of the game.
"The Seattle Post-Intelligencer" headline says "If the U.S. can't love soccer after this, it never will." And TheMiamiHerald.com headline says U.S. women rule.
It was pretty impressive. I mean, you know, I like soccer, you like soccer. These games can get long and they tend to be low-scoring. This one -- this one was a nail-biter. This was exciting.
VERJEE: Yes. This was totally great, Ali. This was a really great moment for the U.S. women's football team.
They were low on hope. They were almost out of time. And this amazing header in the last one minute -- just look at that. It was a totally thrilling moment, and it led to them having a penalty shoot- out with Brazil and they managed to come out on top.
And, you know, this was being said to be even a more exciting match than the men's World Cup football. Everything was packed into this last 15 minutes.
But keep your eye on Abby Wambach. She is the star of the match. And who knows? The U.S. team could get through the finals.
VELSHI: I was at a Yankee game yesterday. And they stopped what they were showing on the big screen there to go live to this match. And the crowd just went crazy for it.
Zain, good to see you. I'll check in with you later on -- Zain Verjee joining with us in London.
All right. Apply for credit, get turned down, get your credit score free. It's about to get easier to keep your credit reputation in check -- thanks to new credit score rules.
We'll be right back.
(COMMERCIAL BREAK)
VELSHI: Good morning. It is Monday, July 11th. This is your A.M.: WAKE-UP CALL.
I'm Ali Velshi, joining you live from New York this morning. It is 30 minutes after the hour. President Obama holds a news conference at 11:00 a.m. to give us an update on debt ceiling negotiations. He and Congressional leaders met last night, but they only talked for a little over an hour. The government has maxed out its borrowing at $14.3. The treasury department says if it can't borrow more money by August 2nd, the U.S. could start defaulting on its loan obligations.
Well, if you apply for credit, you get turned down or if your loan terms get worse, you are going to be able to get your credit scores for free very soon. A new rule from the fed and the FTC take effect ten days from now on July 21st. Lenders will be forced to disclose a credit score. This is different from your credit report which you're already entitled to once a year. Now, you get your credit score every time it's used to revoke or deny you credit or to change credit terms.
Part of Exxon's plan to clean up oil spill in Yellowstone River is not good enough. The EPA says it wants a plan on revisions capturing the oil and removing the pipe without polluting downstream. The government says the water downstream shows no detectible level of toxic petroleum chemicals. Exxon estimates 42,000 gallons of crude were released when a pipeline burst on July 1st.
Washington state couple has filed a complaint with the TSA after their six-year-old son was patted down during an airport screening. They were headed from Seattle to Orlando for a trip to Disney World. Jenine Michaelis says her son was singled out after a video game on his belt apparently set off the metal detector.
(BEGIN VIDEO CLIP)
JENINE MICHAELIS, MOTHER: We all talk to our kids about improper touching. Somebody shouldn't touch you unless you want to be touched. You know, we didn't have any time to talk to him about what they were really doing.
(END VIDEO CLIP)
VELSHI: Somebody shouldn't touch you, unless, you want to be touched, unless, you want to fly on their airplane. After the pat-down, the boy said he didn't want to go to Disney anymore. The TSA says it takes all complaints seriously, and they'll get back to the family.
And Kiplinger to the growing number of companies that have been hacked. The company tells Bloomberg the hackers stole usernames, passwords, and credit card data from up to 142,000 subscribers. Kiplinger produces magazines and newsletters including Kiplinger personal finance magazine and the Kiplinger letter.
Well, a hotel maid who said she was attacked by former IMF chief, Dominique Strauss-Kahn is finding a network of support in New York, even though, prosecutors say she lied. At least dozen community groups, activists, and religious leaders are rallying for the woman insisting that the accuser deserves her day in court. They say prosecutor should focus on the evidence, not the past of the 32-year- old single mother who is an immigrant from Guinea.
(BEGIN VIDEO CLIP)
BILL PERKINS, (D) NEW YORK SENATE: It's a time for us to guarantee that justice is done.
DORCHEN LEIDHOLDT, SANCTUARY FOR FAMILIES: When a woman reports as case of sexual assault, her character must not be the focus of the debate. The focus must be full access to justice in a court of law.
(END VIDEO CLIP)
VELSHI: Dominique Strauss-Kahn has pleaded not guilty. He's free on his own recognizance until his next court date, which is one week from today.
Well, you know, the big drop in gas prices over the past couple of months, well, it seems to have stopped. According to the Lundberg Survey, the average price of unleaded regular dropped over a penny -- or only a penny over the past couple of weeks to $3.62 a gallon. If you're looking for someone to blame, try crude oil prices which are up $5 a barrel.
A House vote is set to take place today to repeal the light bulb efficiency standard set back in 2007 under the Bush Administration. This new push stems from those who say they don't want the government telling them what kind of light bulbs to buy. Supporters of the standard say the more efficient incandescent bulbs only costs about a dollar more than the old ones.
Well, every year, the Tour de France hosts riders from all over the world. So, we were surprised to learn that it has something very, very different going on this year. I'll tell you about that when we come back.
But before we go, today is World Population Day. So, we'll focus today's get smart question on that. The U.N. figures the global population will hit another milestone later this year. What do you think that number will be? ? A, 10 billion, B, 7 billion, or C, 15 billion? I'll have the answer for you right after this break. It's 34 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Thirty-seven minutes after the hour. Today is World Population Day, so we'll focus today's get smart question on that. The U.N. figures the global population will hit another milestone later this year. What do you think the number is going to be? The answer is B, 7 billion. That's a growth of 40 percent in just over 20 years, according to the United Nations. The planet's population has doubled since 1968.
Time now for our "Political Ticker." CNN deputy political director, Paul Steinhauser, on the phone from Washington this morning. Paul, Congressional leaders go back to the White House for debt ceiling talks. They made it about 75 minutes yesterday. I mean, what is the problem here, Paul? PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR (via telephone): Both parties are playing their bait. Let's start with the Republicans. Probably what the president wants to do here is increase taxes on wealthy Americans. That is a huge no-no for the Republican Party. No way. No how. Not in this kind of economy. You say that we're not going to tax anybody, not even the rich.
Why are the Democrats upset (ph) about this problem? Because of the entitlement programs, Social Security and Medicare. The president planned on (INAUDIBLE) for big cuts in those program, and Democrats are saying, no way. Leave your hands off our entitlements, Mr. President. That's why it's so hard to take on both side as they no to any kind of compromise, Ali.
VELSHI: Paul, talk to me about this pledge. There was a marriage pledge that an Iowa social conservative group got Michele Bachmann and Rick Santorum too, socially conservative candidates to sign. There is a preamble there that they're now taking out after getting some criticism. Here's what the preamble said.
"Since slavery had a disastrous impact on African-American families, yet sadly a child born into slavery in 1860 was more likely to be raced by his mother and father in a two-parent household than was an African-American baby born after the election of the USA's first African-American president."
STEINHAUSER: Yes. This thing has a lot of controversy at some of the family leader. They're one of the most social conservative groups in Iowa on the Republican side. You know, Iowa, of course, is the first caucus state. That's why all presidential candidates go there. The family leader is one of the most important groups there, and most of the groups are very important.
That was also for marriage (ph) for basically, it's for people to pledge fidelity to their spouse and also to oppose any redefinition of marriage including same-sex marriage, but that preamble got every -- that's what got all the trouble go in there. Listen, Michele Bachmann said, you know what, I signed this thing, but I didn't sign that preamble. I found it foul (ph).
So, she (INAUDIBLE) preamble. Same thing for Rick Santorum. A lot of spotlight on them as they don't want right now, but you can understand why it is such an important issue out there with social conservatives having so much power -- Ali.
VELSHI: These pledges introduce a whole new dimension to running for office, all these pledges that you have to sign for taxes and marriage. All right. Paul, good to talk to you. Thanks, buddy. Paul Steinhauser, a deputy political editor.
It's 40 minutes after the hour. Here are three things that need to be on your radar today.
Today marks day two of serious government sponsored national dialogue talks. Activists have been criticizing recent crackdowns by that country's security forces. Today, the crew of the space shuttle "Atlantis" will begin moving items from the shuttle to the International Space Station. NASA is holding a mission status briefing live from Houston at 9:30 eastern this morning.
And President Obama and Congress, as Paul was just discussing, are trying to come to a resolution about the debt ceiling at 11:00 this morning eastern time. The president will hold a news conference about the progress toward reducing the deficit.
A funeral will be held today for that Texas Ranger fan who fell to his death while reaching for a tossed ball. The spot where he fell was draped in black and flags at Rangers Park were half-staff during yesterday's game. Shannon Stone (ph) was a 39-year-old firefighter from Brownwood, Texas.
Pittsburgh Steelers wide receiver, Hines Ward, is in a bit of a pickle. He was arrested early Saturday near Atlanta in charged with DUI. Police say he was driving erratically and hit a curb. His attorney say Ward will be exonerated. Even if you're not a football fan, you may remember his moves on the dance floor. Ward won "Dancing with the Stars."
Police in Las Vegas and Nashville are familiar with NFL player, Pac- Man Jones. Now, add Cincinnati cops to the list. They say the Bengals cornerback was in a bar shouting profanities, then resisted when they tried to arrest him. Jones has denied doing anything wrong.
Take a look at this. This is yesterday's winning quarterfinal goal in the Women's World Cup quarterfinal. It came in a shoot-out between the world's number one team, the U.S., and Brazil, the number three team. U.S. is slated to play France next. France is ranked seven, and that game is Wednesday morning.
And a milestone at the Tour de France. His name is Yohann Gene. He's the first black cyclist ever to compete in the tour. The 30-year-old cyclist has been a pro-racer for six years. He moved to France at the age of 17 from his native, Guadalupe.
The Yankees star, Derek Jeter, has joined one of baseball's most exclusive clubs, the 3,000 club, and he did it in style, with a home run.
Pablo Torre from "Sports Illustrated" joins us now to talk about this. You know, I was at yesterday's game. I wasn't at Saturday's game, Pablo. I was hoping to see that 3,000 on Sunday. I was way late for it. In fact, he was at 3,003 before the Saturday game was done.
PABLO TORRE, REPORTER, SPORTS ILLUSTRATED: Yes. I mean, the thing about this is baseball loves celebrating these big round numbers, but the other benefit to this chase was that Derek Jeter got over the hump a little bit. It sort of looked like this all would go very kind of badly.
The bottom line is Derek Jeter's, 37 years old, was on the disabled list, his productivity was famously in decline, and then, he comes back and shows everybody why he's one of the most beloved baseball players. All bar era (ph) going five for five, getting his 3,000 hit on a home run, really showing why you respect the guy even if you loathe him, even if you're the most virulent Red Sox fan. I mean, that's sort of the picture-perfect way you'd want to go into the history books, and Derek Jeter has a flair for the dramatic, managed to get it done, as always.
VELSHI: He's a good guy. He shows up to a lot of games. He likes the fans. He goes out and talks to them. In fact, the fan who caught the ball gave it back to the Yankees. What was that about?
TORRE: Yes. He gave it back and did not ask for a penny. It was the most mind-boggling aspect of all of this. Now, keep in mind, Ali, Christian Lopez, the 23-year-old fan who caught the ball is a far saintlier person than I will ever be. But to me, not asking for money or anything, not driving a bargain with the New York Yankees and Derek Jeter on this fall was kind of like giving a bailout to Scrooge McDuck (ph).
You know, if there's a sports team that almost literally swimming around in gold coins somewhere is New York Yankees. And Christian Lopez in his day job is a Verizon customer service rep. He said he had six figures in loans that he still had to pay and yet he gave his hero, Derek Jeter, a free pass basically.
Now, he's going to get some free tickets. He's going to get some memorabilia, but not driving a bargain on this was an epic moral act that I don't know if I can endorse personally. And I don't know if anybody should love Derek Jeter that much, but he comes out as maybe the classiest guy of this whole affair, surprising a lot of people for his (ph) generosity.
VELSHI: First time a Verizon rep ever gave anybody anything for free. Pablo, good to see you, buddy. Pablo Torre from "Sports Illustrated."
Before we go, on this day in history, in 1914, baseball legend, Babe Ruth, made his major league debut at 19. He pitched seven strong innings to lead the Boston Red Sox to a 4-3 victory over the Cleveland Indians. Forty-five minutes after the hour.
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VELSHI: Good morning. It is Monday, July 11th. This is your A.M. WAKE-UP CALL. I'm Ali Velshi joining you live from New York this morning. It is 48 minutes after the hour.
Time to go around the world. Zain Verjee joins us now from London. Good morning, Zain. You're following a few tragedies this morning. We've got a train crash in India, as well.
VERJEE: Yes. I just want to show you this dramatic video, Ali. I was just looking at it, the twisted wreckage, totally wrecked compartment here. This is the scene in Northern India. What happened was the train just basically jumped off the tracks. Sixty-four people were killed. They're investigating the cause of this. Hundreds of people take trains like this in India all the time, and there are about a hundred accidents like this a year -- Ali.
VELSHI: Zain, we'll keep an eye on that. Admiral Mike Mullen is in China. What's going on there?
VERJEE: Now, these are some really interesting and pretty significant remarks. He gave a speech at the university there, Ali, and he said this. China has arrived as a world power. That's a big deal because everyone in the U.S. until before then had said, well, China is rising. China is rising. It's not quite there yet, but he's definitively saying, it is. The focus of a lot of his trip is also on the South China Sea. Why?
Well, because of its territorial fight that goes on between China, Vietnam, the Philippines, Malaysia, Brunei, as well as Taiwan. They all claim a piece of it because it has potentially huge reserves in oil and gas. And why does this matter to the U.S.? Well, the U.S. conducts joint military naval exercises in the South China Sea, and it really makes the Chinese mad. In fact, Admiral Mullen on this trip had said, you know what, the Chinese shouldn't react in any way that will create a situation that isn't good.
VELSHI: All right. Zain Verjee, we'll keep checking these world stories with you, and I'll check in with you on "American Morning" very shortly.
VERJEE: OK.
VELSHI: Zain Verjee for us in London.
Let's talk about the issue that won't go away. In about five hours, the president will update you, me, and the rest of the nation on the debt ceiling talks. Take a look at the national debt clock here in New York City. We're going to need a bigger clock soon. It's already on two lines. Time keeps ticking toward the August 2nd default day. The president has given lawmakers nine more days to make a deal. This is what the treasury secretary said about that battle.
(BEGIN VIDEO CLIP)
TIMOTHY GEITHNER, TREASURY SECRETARY: Political moment if you're trying to get attention. They say really amazing things, but there's no credible argument. No responsible leader would say the United States of America, for the first time in its history, should not pay its bills and meet its obligations. That would be catastrophic for the economy. Everybody understands that. There's just a lot of political theater in this business.
(END VIDEO CLIP)
VELSHI: The government has maxed out its borrowing at $14.3 trillion.
Here's another story we're following today. An explosion at a naval base in Cyprus. It's left at least 12 people dead and about 40 injured. The blast was so powerful it knocked out the electricity for about one-third of the island. Apparently, the trouble started when a grass fire spread to an area storing crate full of munitions.
Well, space, it's the final frontier. It's also bit messy. NASA believes a chunk of space debris could get close to space shuttle "Atlantis" and the International Space Stations this week. The debris is part of an old satellite.
And Britain's "News of the World" is kaput, done, thank you and goodbye after 168 years, brought down by a phone-hacking scandal, but the story goes on. The deputy prime minister will meet with the family of Milly Dowler. She was the teen girl who was murdered. People working for the paper allegedly hacked her voice mail, deleted messages from her full mailbox after listening to them, giving Milly's family and friends a false impression that she was still alive.
The Dowlers will meet with other British big waves (ph) this week. Their lawyer says Rupert Murdoch has not apologized to them, and that they're pretty upset with the paper's, quote, self-congratulatory" final issue. Here's what the editor said on the last day.
(BEGIN VIDEO CLIP)
COLIN MYLER, NEWS OF THE WORLD EDITOR: Really difficult day have produced a brilliantly professional way a wonderful newspaper.
(END VIDEO CLIP)
VELSHI: Now, there are accusations that the newspaper also bribed police officers and hacked the phone messages of terrorist victims.
The U.S. is withholding $800 million in military aid to Pakistan. It's a smack down for Pakistan expelling U.S. military trainers. U.S. officials hope holding all that money back will exert pressure on Pakistan to crack down harder on militants.
Here's a figure for you. $37 billion. According to Moody's analytics, that much money could vanish from U.S pockets this year. Moody's says nearly two out every $10 Americans took in last year came from the government in the form of jobless benefits, food stamps, and Social Security. When extended benefits go away by the end of this year, some $37 billion won't go into people's accounts and won't go into the economy.
Time now for Reynolds Wolf live in Atlanta. Any flight delays this morning, Reynolds?
WOLF: Not yet, but they're sure to come. We've got a pretty strong storm system moving through parts of the Midwest. The result is going to be possibly some major delays for Chicago, for Detroit. Those thunderstorms can keep you on the ground for at least now, on the ground, in the terminal, on the tarmac. It could be kind of a busy day for you.
Also in Tampa and Miami, mainly afternoon thunderstorms may give you a delay under an hour or so. Same deal for you in Denver, but in San Francisco, some morning fog and wind that could cause few backups here and there to say the least. Also, look for the chance of thunderstorms across parts of the Four Corners into the southeast, and strong thunderstorms may even provide a little bit of flash flooding in a new few key spots.
Keep that in mind on major roadways. All right. Ali, you're up to speed. Let's pitch it right back to you in New York.
VELSHI: Reynolds, have a good morning. I'll talk to you a little bit later on the morning.
Before we go, today's word of the day, skullduggery. Find out what it means and why you need to know it right after the short break. It is 53 minutes after the hour.
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VELSHI: It is 56 minutes after the hour. Before the break, I told you that today's word of the day is skullduggery. Webster's defines it as underhanded or unscrupulous behavior or a devious device or trick. Now, its origin is apparently from the 18th century Scotts term, skullduttery, which at the time referred to indecent behavior like adultery or fornication.
"New York Times" column, the state (ph) car used the word skullduggery while writing about the phone hacking scandal that led to yesterday's abrupt closure of the British tabloid, "News of the World."
Fifty-seven minutes after the hour now. Here are three things that you need to have on your radar today.
First, the debt talks. President Obama and Congress are trying to come to a resolution about the debt ceiling at 11:00 a.m. eastern this morning. The president will hold a news conference on reducing the deficit.
Also at 11:00 this morning, Tiger Woods will make an announcement on the golf channel. No word yet on what he is expected to say.
And today, the crew of the space shuttle "Atlantis" will begin moving items from the shuttle to the International Space Station. NSA is holding a mission status briefing live from Houston at 9:30 this morning.
Let's go across the world to see how your world's money is doing this Thursday morning. Kristie Lu Stout live from Hong Kong. Good morning, Kristie.
STOUT: Hello there, Ali. Now, European stocks have been down. Thanks to that bad payroll report Friday (ph) in the U.S. And fears about the euro-zone debt crisis haven't been helping either.
Now, here in Asia, it's been a downbeat day on the stock markets. We've seen a pretty hefty selloff across much of the region. Now, that on the back again of that dismal U.S. jobs report, and yet, another inflation rise in China. Now, despite the government's continued efforts to cool the price rises there, Chinese inflation soared to a three-year high in June. Back to you, Ali. VELSHI: Implications of that, of course, is that they may have to bring increase interest rates in China and certainly the rest of the world doesn't want Chinese consumers' buying power to be weakened. Hey, Kristie, this is the beginning of the second quarter earnings season, the report card if you will for companies around the world. What are we expecting?
STOUT: There in the U.S., major stock markets, it looks set for a lower open. When the trading week gets under way, you said it this week, is the unofficial beginning of second quarter earnings season. It's going to kick off with (INAUDIBLE). After bell on Monday, it is expected to have earned 32 cents a share. And before the bell on Thursday, JPMorgan Chase reports.
Now, it is forecast to have earned $1.21 a share in the second quarter. Google also reports after the bell and almost expect earnest for Google of around $7.86 a share. Back to you.
VELSHI: OK. It's going to set the tone for us over the course of the next few days. Thanks very much. Kristie Lu Stout in Hong Kong.
Well, Baby Jammichael (ph) delivered weighing 16 pounds, 4 ounces, 24 inches long with a 17-inch chest. Look at this little tank. His baby number four a Longview, Texas couple. Blood sugars are down. The baby is not breathing on his own. He's breathing with assistance right now. The dad says, however, that he sees football in his son's future. We'll keep a close eye on Baby Jamichael. He's a big kid.
That's it for me on WAKE-UP CALL. AMERICAN MORNING begins right now.
