Return to Transcripts main page

CNN Newsroom

"Atlantis" Crew Says Goodbye to ISS; Second Karzai Ally Assassinated; Shuttle Prepares For Final Flight; Mandela Turns 93 Today; Murdock Media Scandal Deepens; Debt Talks Dominate Washington; Heatwave Bakes Midwest; Japan Revels in Women's Soccer Win; Representative, Family Safe after Home Invasion; New York Tour Bus Crash; L.A. Survives "Carmageddon"; Casey Anthony Released; "Potter" Finale Best Opening Ever; "Cheap Trick" Stage Collapse; Beckhams Welcome Daughter; Heat Wave Slams 14 States;

Aired July 18, 2011 - 10:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: It's now top of the hour, 10:00 a.m. on the East Coast and 7:00 a.m. out West. In Afghanistan, assassins kill a second senior official in less than a week. He was a member of parliament and a key adviser to Afghan's President Hamid Karzai.

Minutes ago as you just saw space shuttle "Atlantis" closed its hatch preparing to undock from the ISS. It is scheduled to land Thursday and end the final flight of the shuttle program.

Nelson Mandela turns 93. South Africans pay tribute to him, their former president, by forming at least 67 minutes of volunteering, one minute for each year Mandela spent fighting for freedom in South Africa.

A new casualty in the Rupert Murdoch's media scandal, one of Scotland Yard's top officers has resigned. Two years ago, John Yates ruled that there was no reason to re-open the investigation in the phone hacking by journalist, and it was that botched decision that also cost the job of Britain's top cop. The head of the Scotland Yard stepped down amid public outrage yesterday.

(BEGIN VIDEO CLIP)

SIR PAUL STEPHENSON, METROPOLITAN POLICE COMMISSIONER: As commissioner, I carry ultimate responsibility for the position we find ourselves in. With hindsight, I wish we had judged some matters involved in this affair differently. I didn't, and that's that.

(END VIDEO CLIP)

PHILLIPS: CNN's Dan Rivers is in London where all eyes turn to tomorrow's testimony before lawmakers. Tell us why.

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, they want to know how far up the chain this went, this whole phone hacking scandal. Who knew what in the Murdoch Empire? That's what they hope to get to the bottom of tomorrow. Rupert and James Murdoch themselves will be appearing before politicians here for a grilling as well as those two -- their former executive Rebekah Brooks will appear separately because she was arrested late last night and detained and questioned for some 12 hours. She's out on bail.

They have to be careful how they frame the questions so they don't sort of prejudice any subsequent trial, but she will also be questioned. As you mentioned, now we've had not only the most senior policeman in the country go, but also one of his senior officers as well.

He was in charge of the initial review into this. John Yates initially went away and looked at the evidence and said, no, there are only a handful of victims in this, and it's not worth digging back into.

Now we know there are 4,000 potential victims, so his explanation was questionable to say the least. Now he's gone and we wonder who is next.

PHILLIPS: Dan Rivers, we will pay close attention and see how that testimony goes. Thanks. Stay with CNN for all the latest developments on the Murdoch media scandal and join us tomorrow to hear from the man himself, Rupert Murdoch, his son, James, and Rebekah Brooks. As you heard Dan just say due to testify before British lawmakers tomorrow beginning at 9:30 Eastern Time.

Fifteen days from now your dollar may be worth less, your loans could cost more. That is if the government runs out of money and is unable to pay its bills. With a major breakthrough increasingly out of reach, lawmakers are showing more interest in a fall-back plan.

The compromise measure would allow the president to raise the debt ceiling and avert crisis before lawmakers agree on where the spending can be cut. A vote on that could happen this week.

The fall back plan would likely pass the Democratic controlled Senate, but face a bigger challenge in the House that Republicans hold the majority.

CNN's Brianna Keilar is at the White House. So Brianna, it doesn't appear that the White House is any closer to brokering a deal.

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: No, Kyra, and there were no announced meetings between President Obama and congressional leaders over the weekend. So if there were meetings, the White House and congressional leaders were able to keep a lid on it.

But you said it. Fifteen days away, a little over two weeks from the date when the Treasury Department says the U.S. will default on its loan obligations setting off horrible economic consequences.

And a plan for deficit reduction that would sort of clear the way to increasing the debt ceiling and perhaps getting some Republican support still eluding the White House, still eluding congressional leaders.

There was no significant progress over the weekend. As you said, Kyra, a lot of eyes right now focussing on this kind of fall- back plan that the top Republican and Democrat in the Senate, Mitch McConnell and Harry Reid are trying to work out.

It's a plan that practically speaking would allow President Obama to really have the ability to increase the debt ceiling and not require a majority of support in Congress to do so.

But it wouldn't address necessarily spending cuts, those expensive entitlement programs and tax increases, which still, Kyra, Democrats are demanding and Republicans are balking at.

PHILLIPS: All right, Brianna Keilar live at the White House on the debt talks. Brianna, thanks.

There's a heat wave that's baking most of the central U.S., and it's expected to spread east. Sixteen states are currently under heat advisories, watches or warnings now.

CNN's Ted Rowlands is live in Minneapolis. So, Ted, you were at a Twins game yesterday and saw several people suffering from heat exhaustion. What else have you seen?

TED ROWLANDS, CNN CORRESPONDENT: Well, I tell you, we were at a game yesterday. There's another one here today. Actually, two games, and it was hot. It's going to be even hotter today with the heat index up 110 degrees.

Yesterday, several people suffered from heat exhaustion. One gentleman actually had to be wheeled out in a gurney with an IV attached to him because he had suffered from severe heat exhaustion.

The Twins are going out of their way to help with people. They put up stations around the stadium for water, and the lines for that water yesterday were very long. Expect the same thing here today. This is happening, of course, across the Midwest, but here in Minneapolis, boy, they are not used to this kind of heat. They deal with the cold, but when it gets how the, it's tough for them to deal with.

PHILLIPS: It's not just Minnesota, but we're seeing the rest of the Midwest baking as well, Ted.

ROWLANDS: Yes. Oklahoma, it's been horrible, 27 days -- think about that. This summer has been over 100 degree degrees. The governor there actually asked people to pray for some relief.

In Texas, they have a horrible drought going on. Cattle are sold by some farmers there because they can't grow grass to feed their cattle so they're selling them earlier than they want to. It is miserable.

And as we said earlier, this is going to happen throughout the week here in Chicago. St. Louis, there are cooling stations opening up this week in the Midwest. I guess, they call that a heat cap. It's right on top of the country right now, and people are having to deal with it.

PHILLIPS: All right, Ted Rowlands live from Minneapolis. Ted, thanks.

Baseball has been Japan's national sport for a long time, but suddenly they've gone soccer crazy. The Japanese women's soccer team just won the World Cup outshooting the U.S. in the final.

Zain Verjee joining us live from Frankfurt where the match was played. So Zain, what was it like actually being there?

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: It was pretty amazing being there, Kyra. I mean, the atmosphere in the stadium was absolutely electric. People were biting their nails. I was on the edge of my seat.

The U.S. came out really aggressive out of the gate. They were hustling so hard to score a goal, but they had so many missed opportunities. The first goal came around the 68th minute when the youngest player on the U.S. team substituted in, Alex Morgan, scored a beautiful goal.

But then minutes later the Japanese got one, and mainly because of a U.S. communication failure in the defense line. They kind of gave them a gift by tapping the ball onto the Japanese attacker's foot and it went in there.

Later on in extra time, Abby Wambach, an amazing U.S. striker, the coach even calls her "The Beast." She's known for these incredible headers. She was in the air and she got one in and everyone thought great, that's a wrap. The U.S. has it.

But, no, the Japanese came back in the last few minutes, and boom, they scored and as you know they won in a dramatic penalty shoot-out. It was an incredible match. People were tweeting like crazy, Kyra. I was looking that a world record was set yesterday, 7,196 tweets a second at end of the game. Did you watch it?

PHILLIPS: I did not watch it because I knew you'd be there and bring me the highlights. I had to admit I was caught up watching Tour de France over the weekend. I'm in full disclosure here.

But, you know, we have talked a lot about the U.S. women had a lot to deal with, a lot of comparisons to the '99 women's soccer team that did win the Cup. Who would forget brandy tearing off her jersey and chaos ensued.

VERJEE: Yes, absolutely. I mean, that's one of the most iconic images in U.S. sporting history, but you know what? This team is extra disappointed because for years they've been kind of struggling to get out from under the shadow of the '99ners is what they call them.

They want to make their own name. They want to be the new generation. This match was so important for them to try and redefine themselves because everybody thinks of the magic of 1999 and the game in the Rose Bowl arena in Los Angeles and how amazing Mia and Brandy and Julie and Joy were.

They wanted to make a difference, but unfortunately it wasn't meant to be. They played the better game, but they didn't manage to clench it. Kyra, it was an amazing match to watch, and it will go down in history.

Good for the Japanese. They were the sentimental favorites going in. They started off a little bit nervous at the beginning. They didn't really unlock their game until after the first shot, and then they really showed skill in controlling the ball and passing, and they did get lucky, too.

PHILLIPS: Yes, well, they needed it for morale. That's for sure. Zain, thanks so much. As Zain mentioned, you know, the United States loss in the World Cup finals, it definitely broke the hearts across the country.

But, that's right, in Japan, their win was a boost that that country desperately needed. We'll be talking more about that coming up.

Casey Anthony was set free over the weekend in the middle of the night. I'll tell you why her own parents don't even know where she is right now.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories cross country. An Iowa congressman and his family safe after a home invasion, it happened over the weekend in the home of Representative Leonard Boswell.

Apparently, an armed man came to the front door, attacked Boswell's daughter and demanded money. Boswell ran for help and so did his 22-year-old grandson. He grabbed a shotgun and chased away the intruder.

In upstate New York, two people are killed and at least others injured when a tour bus crashed on Interstate 390. A tire blowout may have caused the accident.

And Los Angeles survived "Carmageddon." Drivers heated dire warnings of traffic gridlock and mostly stayed off L.A.'s freeways over the weekend. Interstate 405 re-opened at noon local time yesterday after crews finally finished the work on the bridge much earlier than expected.

All in all it was a pretty anti-climatic end to the circus that was the Casey Anthony trial. She actually walked out of jail this weekend, released just after midnight Sunday morning. To no one's surprise she's gone into hiding.

CNN's David Mattingly covered the trial for us. So David, it's even out there that her own parents don't know where she is.

DAVID MATTINGLY, CNN CORRESPONDENT: That's right, Kyra. Just one of the many surprises again continuing with this story. Not only did they walk out of jail, she walked out of the front door and waiting for her were a couple of hundred angry protestors, some of them shouting the word killer as she got into an SUV and sped off into the night.

News helicopters lost sight of that vehicle in a parking deck in downtown Orlando at an office building where there's an office for one of her defense attorneys. Her whereabouts after that is anyone's guess. Her family does not know where she is.

Speaking through their attorney, they say that Jose Baez, Casey Anthony's attorney, actually approached them and asked them to act as decoys that night that she was released. They refused to do that. Later they say they received a text message saying that Casey Anthony was OK, and that she was safe. They got some comfort from that.

But they didn't get any information about where actually she is. The family believes, however, Kyra, that she is no longer in Central Florida with all the attention this trial has been getting, virtually anyone here could recognize here anywhere.

PHILLIPS: Well, she may be out of jail, but she's not free of all the other legal entanglements that surround her.

MATTINGLY: That's right. She has a lot of civil cases to deal with, but first facing her right away, this will be coming up next month. The state of Florida is seeking compensation for all the money it had to spend in this investigation and in this trial.

That could total up to about hundreds of thousands of dollars, and they want Casey Anthony to pay it back. There's going to be a hearing to decide how much they're going to be seeking, and, of course, Casey Anthony and her attorneys are going to be fighting that because she has to start her life over again and having the burden of hundreds of thousands of dollars is definitely going to have an impact there.

She has already declared indigent, unable to pay for her own defense. A lot of fighting left to do, a lot of talking left to do and a lot of questions still remain as we continuing to through the courts with Casey Anthony.

PHILLIPS: David Mattingly live out of Orlando. David, thanks.

North Korean soccer players fail doping test at the women's World Cup, and you're not going to believe what they're blaming for it.

Harry Potter series just keeps rolling on. We'll show you just how much the latest boy wizard movie took in at the Box Office.

(COMMERCIAL BREAK)

PHILLIPS: Your showbiz headlines. It's the biggest opening weekend ever for the Harry Potter movie. That finale hauls in 169 million bucks here in the U.S. That actually beats the first weekend record set by the "Dark Night." Worldwide it's taken in nearly a half billion dollars.

There were warnings at the Blues Festival in Ottawa, Canada that storms were coming. When Cheap Trick started performing, the entire stage came down around them. It was all caught right here on Youtube, the band is fine.

Wants to be a pop star or soccer player? What do you think? For the first time we're seeing pictures of Victoria and David Beckham's baby daughter, Harper, after Harper Lee, the author or mom's favorite book, "To Kill a Mockingbird" and seven, the number that David Beckham used to sport on the back of his soccer jersey.

We know that hearts were broken all over the United States after yesterday's loss to Japan in the Women's World Cup, but as our Kyung Lah says Japan was a country that needed a little good news.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT (voice-over): In the urban sports bars of Tokyo to the gymnasiums of rural Japan, the sound, the same, jubilation.

A team of underdogs against a stronger team, they'd lost to 25 times. More than a sports team, they carry the prayers and hopes of the badly damaged nation moved to tears as they watch.

I think we witnessed something historic says this fan. I was so moved.

(on camera): Hours after that incredible win, the game is being replayed across Tokyo. It's not just soccer fans, but an entire nation desperately in need of a feel-good moment and some heroes.

(voice-over): Coming four months after the tsunami, Japan continues to reel from the disaster. The Fukushima nuclear plant remains a crisis still spewing radiation and months away from a cold shutdown. Japan's economy has struggled in the wake of the epic disaster.

The lawmakers locked in partisan bickering and trying to oust the prime minister. While in the tsunami zone, nearly 100,000 remain in evacuation centers and temporary housing with years of rebuilding ahead.

This game happened at the right time for us says this tsunami victim. This victory gives us the strength to keep going. The morning papers for once blared upbeat news snatched up by eager readers.

There's been so much bad news from Japan, says this commuter, this is good news and it encourages us. The sports world is already calling the women's team the comeback kids for how they refused to yield in the World Cup, but to their home nation they're a potent symbol, a reminder to never give up. Kyung Lah, CNN, Tokyo.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, Warren Buffett and Bill Gates sit down with President Obama today to talk about charitable giving. What do you think? Should they advise the president on the debt ceiling? Our "Political Buzz" panel weighs in.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now. The heat is unrelenting. The National Weather Service declaring excessive heat warnings for 14 states. The humidity can make it feel as hot as 126 in some places, and it's extending all the way through the Midwest. No deaths have been reported so far.

Former "News of the World" Rebekah Brooks will testify as scheduled tomorrow before British lawmakers investigating illegal eavesdropping by journalists. Brooks was arrested and released over the weekend.

President Obama says talks will continue this week, but top Republicans say they still need more specifics on deficit reduction before agreeing to anything. In a new twist Moody's, the big credit rating agency, says that the U.S. would be better off if it did away with the debt ceiling entirely. Lawmakers have an August 2nd deadline to get that deal done.

All right, "Political Buzz," your rapid fire look at the hottest political topics of the day. Three questions and 20 seconds on the clock and playing today, Democratic strategist Maria Cardona, Sirius XM political talk show host and comedian Pete Dominick and CNN contributor and talk show radio host Dana Loesch.

First question, you guys, this hour, Warren Buffett and Bill Gates sitting down with President Obama. What kind of advice should they give the president to solve the debt impasse? Dana --

DANA LOESCH, CNN CONTRIBUTOR: Goodness, have the Senate Democrats come up with some sort of balanced budget amendment or come up with specific cuts that they can make in these debt talks. That's one of the things that we're missing.

Realistic, big-time cuts that were actually going to have a difference aside from the pettily $2 trillion, where only in D.C. would $2 trillion sound like a nothing amount.

PHILLIPS: The pettily $2 trillion, Maria.

MARIA CARDONA, DEMOCRATIC STRATEGIST: I think what they'll do, Kyra, is continue to urge this president to stand strong on wanting to keep tax revenues, new revenues into whatever deal. They have been saying for many, many, many years that they are -- that people like them can and should be paying more because any deal needs to be fair and balanced. Most Americans agree with that.

PHILLIPS: Pete.

PETE DOMINICK, SIRIUS-XM POLITICAL TALK SHOW HOST: Well, maybe Bill Gates could tell the president how to design a revolutionary new operating system that would dominate all computers.

Short of that, Warren Buffett and Bill Gates have taken advantage of all these tax loopholes that President Obama wants to close. These guys know better than anyone how to take advantage of them. They should tell the president what they use, and maybe he could address those issues right now.

PHILLIPS: All right, guys, GOP candidate Herman Cain says a community should be able to prevent building a mosque in their neighborhood. Is this kind of thinking presidential? Dana.

LOESH: Well, really quickly, 55 percent of American oppose tax hikes in the debt ceiling talks. But according to -- going along with Herman Cain's discussion here, I'm against mob rule.

But I believe that any sort of mosque that's built in a community needs to disclose whether or not it has ties to any organizations that present a conflict of interest to American security. I think that two-way street is fair, so hopefully we can have more of that in the future.

PHILLIPS: Maria.

CARDONA: It is as far from presidential you can get. It's downright shameful. Would he ask the same of Christians, of Buddhists, of Hindus, of Jewish people wanting to build those kinds of institutions and places of worship in their communities?

He is in essence equating American Muslims, Americans in their community with al Qaeda and with Osama Bin Laden, downright shameful.

PHILLIPS: Pete.

DOMINICK: This is so stupid and insulting. Herman Cain and anybody who shares this kind of idea that says you can't build a house of worship is a joke. It's insulting.

I'm no fan of religion myself, but this is too sad. He actually has a lot of executive experience. He should focus on that. Muslims have helped disrupt every plot in America. We need to be their friend, not their enemies and that's exactly what he's doing.

PHILLIPS: All right, guys, your buzzer beater. Ten seconds each. Sarah Palin's movie is out for all to see this weekend. Her big competition is Harry Potter. What would you rather see, Maria? CARDONA: I would rather see Harry Potter. If I was a fan of horror movies, I go see Sarah Palin's movie because I'm sure it's going to be downright scary. It would give me nightmares for days.

PHILLIPS: Dana.

LOESCH: That's so classy. I'm going to see the Sarah Palin movie obviously, but I'm also going to see the Harry Potter because I have two boys. I have to. I'm obligated to.

PHILLIPS: Pete.

DOMINICK: Well, one movie has really made us familiar with a character who developed over three years and helped people who are very religious and lack certain critical thinking skills. I really am attracted to that, but the other movie centers around a wizard. So -

(BUZZER)

DOMINICK: I'm not sure. I think it's a win-win.

PHILLIPS: Thanks, guys, for weighing in.

Well, soccer's governing body says five players from North Korea's women's World Cup soccer team have now failed doping tests. A team that didn't even make it into the quarterfinals, by the way. And wait until you hear what they are blaming the failed tests on.

Zain Verjee is back. Zain, do tell.

ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: Right. Well, this story is a little bit sketchy. You decide and see what you make of it, but the North Koreans played the U.S. and they lost that match. Now shortly after that, the coach went out on the record saying that the players were struck by lightning when they were training in North Korea and that they had been taken to hospital. He said that the treatment that was given to the players that were allegedly struck by lightning was deer musk. That's basically - the deer in North Korea has this hairy gland, and they basically cut those hairy glands open and a liquid comes out and they fed it, he says, to the players as medicine.

Now FIFA is saying, hang on a minute. These five players testing positive for steroids, and now there's this disciplinary committee that's looking into this. These players could be suspended for something up to two years. But their story is the players were hit by lightning, and they only gave them this deer musk liquid treatment.

PHILLIPS: You know, you just never know. There's all types of philosophies about various anecdotes, Zain.

OK, players from other teams, did they fail tests?

VERJEE: No one else has failed a test. The biggest scandal right now is this North Korean story. It's the biggest scandal in two decades here. But many people here are just asking questions, like you know, how many people could actually be struck be lightning at once? And what was this somehow some kind of a designer steroid laced with this deer musk? There are too many questions that just make it too sketchy a story.

And we don't even know how the North Koreans put this out in the media. It just suddenly appeared, and there isn't any proof, although they claim there are photographs of the players that have been taken to hospital after being hit by lightning. I'm not sure we'll ever know because it's the hermit kingdom. Kyra.

PHILLIPS: Zain Verjee, thanks.

She was the most powerful woman in British media, and today those news headlines and cameras are focused on Rebekah Brooks and the scandal that has engulfed Rupert Murdoch's empire. We'll take a closer look.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories "Cross-Country" now. Extreme summer heat making things unpleasant, even dangerous for a lot of folks. In Minnesota, they had to delay a kids' soccer tournament when the heat index soared to 110.

In Chicago, cooling buses and fans keep concert goers from wilting. A heat advisory remains in effect through tonight.

And a different weather issue in Denver. Golf ball-sized hail blew in and damaged a number of planes at the airport. Frontier Airlines getting hit the hardest, canceling dozens of flights.

The rise of fall of one of the most powerful women in British media. Rebekah Brooks was arrested yesterday in the investigation into phone hacking and police bribery. Now she's scheduled to testify before lawmakers tomorrow. CNN's Atika Shubert reports.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT (voice-over): In the cozy world of British politics and media, Rebekah Brooks was at its very center. She wined and dined the rich and powerful on behalf of her boss and mentor, Rupert Murdoch.

Brooks first came to News International as a secretary at "News of the World." She quickly developed a reputation for her tenacity as a journalist, reportedly once disguising herself as a cleaning lady to scoop a competitor. Described as both ruthless and charming, she was soon the youngest editor of "The News of the World," and shortly after that, "The Sun" -- both owned by Murdoch's News International.

She spearheaded a controversial campaign to, quote, "name and shame" alleged pedophiles, publishing their names and addresses in the paper.

As the editor of "The Sun," Brooks testified to parliament that her paper had paid police officers for information. And it was under her editorship that "The News of the World" allegedly paid a private investigator to hack into the voicemail messages of Milly Dowler, the 13-year-old girl murdered in Britain whose investigation and court case made front page headlines.

Those allegations did not come to light until almost a decade later, after Brooks had scaled the corporate ladder to become chief executive of News International, a position she resigned last week. Brooks has denied having any knowledge of any phone hacking by her staff.

It was Brooks who cemented a relationship with Prime Minister David Cameron, inviting him to lunches at her country home with the head of News Corporation Rupert Murdoch's son, James.

There have been several arrests in the phone hacking scandal so far, but Rebekah Brooks is the highest profile yet, and the one closest to Rupert Murdoch himself.

Atika Shubert, CNN, London.

(END VIDEOTAPE)

PHILLIPS: NFL players and owners return to the bargaining table today in New York. Negotiators reporting progress on a wide range of issues. The two sides have been at odds since March when the NFL imposed the lockout. The first preseason game set for August 7th.

It took him 20 years to do it, but Darren Clarke finally won the British Open. He held off late challenges from Phil Mickelson and Dustin Johnson. He claims his first major title at the age of 42.

Former hockey star Joe Sakic sank a hole in one yesterday at the American Century Championship at Lake Tahoe. He won a million-dollar bonus. He's going to split it 50/50 with Lance Armstrong's Livestrong foundation.

And basketball great Charles Barkley didn't win any prizes for his golf swing yesterday in Lake Tahoe. Take a look at this. Not sure where he learned this technique or even if you ca call it a technique. It's pretty bad on the tee shot to the 18th. He just stopped, one-handed the club and yep, knocked it right into the "Happy Gilmore" rough.

It would make the summer a lot more uneventful, but what if the United States got rid of the debt ceiling completely? Alison Kosik takes a look at that right after the break.

(COMMERCIAL BREAK)

PHILLIPS: Thirty-four times American shuttle crews have packed up and shipped out from the International Space Station. The thirty- fifth and final departure is tomorrow, but first the astronauts had to say good-bye.

CNN's John Zarrella is going to tell us all about this morning's farewell ceremony. Hey, John. JOHN ZARRELLA, CNN CORRESPONDENT: Hey, Kyra. Yes, the hatch is now closed and the astronauts will go to bed shortly. Then later tonight, they'll get their wake-up call again.

But the order of business today was closing the hatch for the final time between the space station and a space shuttle. In a brief ceremony, the six space station astronauts and the six space shuttle astronauts gathered together at the hatch that leads to the space shuttle. And they placed an American flag that flew on the very first space shuttle back 30 years ago. They placed that flag on the hatch.

(BEGIN VIDEO CLIP)

RON GARAN, ATLANTIS ASTRONAUT: We close that hatch when these guys go by; we're closing a chapter in the history of our nation. But in the future when another spacecraft docks to that hatch and with crew members on board and we open that hatch, we are going to be opening a new era and raising a flag on a new era of explanation behind lower earth orbit. So, it's a great honor to do that and it's a great place to put it.

(END VIDEO CLIP)

ZARRELLA: So, they closed the hatch for - just a few minutes ago, and the flag seen prominently on the hatchway there on the international space station. And of course, the astronauts all hugged and said their good-byes.

And that flag will be returned to earth when the next U.S. crew arrives up at the international space station, which will likely be on a commercial vehicle in three or four years. They'll bring that flag back to earth, and then the flag will fly on the first deep space mission, probably to an asteroid or to Mars in 2025 or 2030. Kyra?

PHILLIPS: That's pretty awesome. I hope you get a chance to actually see it - yeah -- and bring it into a live shot. Thanks, John.

How about this for an idea? Eliminate the debt ceiling altogether. That's what one well respected firm is actually suggesting. So, Alison Kosik, what do you think?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hey, I think go for it! Chuck it all together if you ask me.

Yes, so this is not coming from me, though. It's from Moody's, which is really making a lot of headlines lately. You know, the ratings agency warned last week it will downgrade the U.S. credit rating if it doesn't reach a debt ceiling agreement in time. And now Moody's is coming out and saying, you know what? Why not just get rid of the whole thing altogether?

It's saying by setting a ceiling on debt, what happens is it creates uncertainty over the government's ability to meet obligations every single time we get close to the ceiling. And that means that big investors that hold onto U.S. debt, they get scared and they begin to consider it risky to hold that kind of debt.

Now the U.S., remember, is supposed to this harbor of uncertainty, a spot of safety approximate in a world of uncertainty, and that countries shouldn't be nervous about holding our debt. So Moody's really wants the U.S. to consider another framework that wouldn't cause the kind of uproar we're going through right now. Kyra?

PHILLIPS: All right, so one of the basic problems is the debt ceiling hasn't been effective in keeping the debt down?

KOSIK: Yes. You know what, I mean for decades it's been a routine thing. Congress has always raised the debt ceiling without stirring up too much controversy. But it is important to remember that the debt ceiling is actually not linked to spending levels, so it doesn't actually keep the country's debt in check in any real way.

And the U.S. is actually one of just a few countries that has a legal barring limit. Moody's actually points to Chile as a model that we should look to. It's seen at Latin America's most fiscally sound country, because over there the government doesn't have a hard-and- fast ceiling, but debt is generally kept constrained. So in theory, it would keep the government from spending too much or much more than it has, and hopefully avoid this occasional panic that we go through.

Somehow I don't see that happening. I kind of think politicians like this back and forth, you know?

PHILLIPS: Exactly. Hey, that's why they -- that's why we are where we are, because of how they handled it. Thanks, Alison.

Stories making news later today. President Obama nominating former Ohio attorney general Richard Cordray to head the new Consumer Financial Protection Bureau. That comes at 1:05 Eastern.

The U.S. House Rules Committee holds a hearing into the Cut, Cap and Balance Act at the Capitol. That hearing is supposed to start at 5:00 Eastern.

And in New York City, a summit on cyber bullying and cyber safety being held at the Times Center in New York. That also begins at 5:00 Eastern.

An elder statesman celebrates another year on earth while many admirees - admirers, rather -- celebrate him. Nelson Mandela being honored on his 93rd birthday.

(COMMERCIAL BREAK)

PHILLIPS: This morning a changing of the guard in Afghanistan. Army general David Petraus officially transfers U.S. command to Marine Lieutenant General John Allen. Petraeus is headed to a working retirement. In September, he takes over the CIA.

Barbara Starr at the Pentagon. Barbara, what will Petraeus do when he gets to the CIA? First things first. BARBARA STARR, CNN PENTAGON CORRESPONDENT: You know, he has to do what every CIA director does when they walk in the door in Langley, Virginia, and that is to convince the work force there he's one of them. That he's not some retired Army general with his heart still at the Pentagon and with the U.S. military in terms of what he wants to accomplish there. He takes the uniform off after 37 years. And, of course, the last several years serving as commander in both Iraq and Afghanistan.

Let's just listen for a minute to some of his last words in command.

(BEGIN VIDEO CLIP)

GEN. DAVID PETRAEUS, OUTGOING COMMANDER, U.S. FORCES IN AFGHANISTAN: It has, again, been the greatest of honors to serve here. To witness the skill and valor of our troopers, and to see the courage and commitment of Afghan leaders, Afghan forces, and the Afghan people.

(END VIDEO CLIP)

STARR: But at the CIA, it will be a little bit different. He will still, of course, work the Afghan and Iraq issues, but it's really going to be this emerging theater of war on terror. Somalia, Yemen, still Pakistan. And of course, the traditional concerns about North Korea and Iran.

Iran may prove, Kyra, to be topping the list in the months and years to come. A lot of concern that the Iranian regime is getting very involved in Afghanistan, in Iraq, and really trying to exert its influence throughout that region.

So, all of this list of countries are going to be the things that Petraeus will be dealing with as Director Petraeus once he's no longer General Petraeus. Kyra?

PHILLIPS: It will be interesting to watch the difference that he makes and the changes that he makes. Barbara Starr from the Pentagon. Barbara, thanks.

STARR: Sure.

PHILLIPS: Today is Nelson Mandela's birthday. Nobel prize winner turns 93, and millions of schoolchildren around the country saying happy birthday to Mandela before lessons begin today. Take a listen.

(BEGIN VIDEO CLIP)

CROWD (singing): Happy birthday to you, happy birthday to you, happy birthday dear Nelson -

(END VIDEO CLIP)

PHILLIPS: CNN's Robyn Curnow is in Johannesburg. So, Robyn, how else are people celebrating Mandela on this special day?

ROBYN CURNOW, CNN INTERNATIONAL CORRESPONDENT: Well, it is a special day for South Africans, and there was, as you could hear, quite a lot of singing when I dropped my four-year-old off at school this morning. It was quite touching to think that more than 12 million school children in South Africa were at the same time singing happy birthday, Ta-Ta. Now, Ta-Ta (ph) means "grandfather," and that gives you some sense of how South Africans view Nelson Mandela. They view him as a member of the family, and of course, as the grandfather of this nation.

So, for his birthday for 67 minutes everybody is encouraged here and also around the world to do 67 minutes of volunteering for your community. And basically he and his people have said, don't give me a gift. Rather, look next door and help somebody who needs a little bit of help. Maybe needs their house painted or maybe somebody needs a meal cooked. And basically, Mandela and those around him wanted to say and want to urge people all over the world that, you know, big things start with little steps, and that sacrifice, like all the sacrifice he gave, all started off with just turning to the person next to you and saying, how can I help?

So, it's that kind of attitude, that kind of wonderful feeling of selflessness that is being sort of felt around South Africa today. It's been very touching.

PHILLIPS: Well, how is his health, by the way?

CURNOW: Good question. As you'll remember, at the beginning of this year he was in hospital with pneumonia. Much to his doctor's surprise, from what I understand, he's rallied quite well. He is doing well.

But you know, he's 93. Let's not forget that. So, he struggles with a number of health problems. We also know that his memory is failing. He sometimes does get confused, often frustrated with this sort of old body that he finds himself in.

But I think many people around him quite astounded at his will to live, his incredible self-discipline. And of course, after 27 years in prison and all those sacrifices, one shouldn't be surprised that he turned 93 today. And I'm sure many more to come.

PHILLIPS: Yes, indeed. Diana (sic), thanks.

And coming up in the next hour of CNN NEWSROOM, Morgan Freeman joins us to talk about playing Mandela, a role he says was harder than playing God. The movie legend also has an update for us on Mandela's health. That's coming up at the top of the hour.

(COMMERCIAL BREAK)

PHILLIPS: Let's straight to our political editor, Mark Preston, for a bit of a political update. He is out of Washington. So Mark, Rudy Guiliani making a little news over the weekend. MARK PRESTON, CNN SENIOR POLITICAL EDITOR: He certainly is. You know, Kyra, we know that Rudy Guiliani does not support gay marriage, but he does support civil unions. Still, look at this at this advice he's giving his Republican colleagues when it comes to the issue. He says, "I think the Republican Party would be well-advised to get the heck out of people's bedrooms and let these things get decided by the states." He goes on to say, "We'd be a much more successful political party if we stuck to our economic, conservative roots."

Now, Guiliani made these comments yesterday on "STATE OF THE UNION" with Candy Crowley. You know, Kyra, we're still waiting to see if he will take the plunge and try to run for president once again.

Now, out in Iowa, here's some pretty disturbing news that came out with a pretty decent outcome. Leonard Boswell, he's a Democratic congressman. Was in his farmhouse late Saturday night when an intruder broke in. The intruder put a gun to his daughter and demanded money. Now, Boswell, who is 77 years old, went after the gunman, tried to get the gun away from him, was unsuccessful. But his 22-year-old grandson pulled out a shotgun. The intruder then headed for the hills.

Now, the good news is nobody was hurt. There was some minor bruises and some scrapes, and they're still looking for the intruder.

PHILLIPS: Hey, how about that 22-year-old grandson? He's the hero in this story! He's got everybody's back, doesn't he?

PRESTON: He certainly is. And I'll tell you what, you can do a lot of talking with a loaded shotgun, that's for sure.

PHILLIPS: What else is happening on the campaign trail today? What are you tracking?

PRESTON: Well, you know, the big question is what's going to happen with Rick Perry? He's the Texas governor. Is he going to run, is he not going to run? He gave an interview, Kyra, over the weekend to "The Des Moines Register," a very influential newspaper out in that state, where he seems to be edging towards it.

So I think over the next week or two, perhaps the next three weeks, we'll find out if Rick Perry is actually going to take the plunge. He's actually doing okay in the polls right now for somebody who hasn't announced he's running for president yet, Kyra.

PHILLIPS: All right, Mark Preston. Thanks. We'll have your next political update in just about an hour. And of course, a reminder for all the latest political news: you can always go to our Web site at CNNpolitics.com.

Well, well, well. Look who is in the hot seat today.

DREW GRIFFIN, CNN ANCHOR: I like that shotgun story.

(LAUGHTER)

GRIFFIN: You don't have to talk at all with a shotgun, really.

PHILLIPS: Doesn't get better than that, does it? You want to bother my sister? I have one thing to show you.

Drew Griffin, take it away.

GRIFFIN: Thanks, Kyra.