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CNN NEWSROOM

New Anti-U.S. Violence Erupts; Extraordinary Secret Briefing on Libya; Romney's Rough Week; Cancer Cure within Reach; Newest Apple Phone Now on Sale; Google Won't Remove Anti-Islam Clip; Microsoft Saved Billions on Tax Loopholes; Endeavour's Final Flight Today; Video Show Lohan's Latest Incident; NFL Warns Teams about Conduct; Eye-to- Eye with a Cheetah

Aired September 21, 2012 - 09:00   ET

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


CAROL COSTELLO, CNN ANCHOR: Hi, Soledad, thank you.

Happening now in the NEWSROOM, 70,000 to stop the protest. The State Department airing a PSA, a public service announcement, in Pakistan saying America respects all faiths. Some, though, say America is waving the white flag.

Taking on her critics. Ann Romney hitting the road last night saying if someone else can do a better job, they should try running for office themselves.

(BEGIN VIDEO CLIP)

ANN ROMNEY, WIFE OF MITT ROMNEY: Stop it. This is hard. You want to try it, get in the ring.

(END VIDEO CLIP)

COSTELLO: This, as fellow Republicans keep slamming team Romney. Peggy Noonan this morning calling the campaign a, quote, "rolling calamity."

Cancer breakthrough. A CNN exclusive. Dr. Sanjay Gupta and the bombshell news from one of America's top cancer hospitals. Have we finally turned the corner on fighting some of the deadliest forms of the disease?

Plus this. It's here. iPhone frenzy. The lines and lines and lines, from Australia to the big apple. People camped out for more than a week. Belly up to the genius bar.

NEWSROOM starts right now.

Good morning. Happy Friday to you. I'm Carol Costello. We begin this hour with new anti-American violence erupting across much of the Muslim world. In Bangladesh, about 10,000 protesters take to the streets, many burned U.S. flags and some torched a mock coffin with President Obama's name scrolled on the side.

In Sri Lanka more anger over that film mocking the Prophet Muhammad. Across the region the United States shut many diplomatic facilities because Friday prayers often fueled mob rage.

Some of the ugliest violence, though, is in Pakistan. In Peshawar, protesters set fire to two movie theaters. One person was killed, dozens more injured.

CNN's Reza Sayah joins us live from Islamabad with more.

Good morning.

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Good morning, Carol. This is an awful, awful day here in Pakistan. This week the government here declared this Friday a national holiday, a day to show your love for the Prophet Muhammad. But it turned out to be a day when many Pakistanis showed their anger against America.

Demonstrations in every major city in Pakistan and sometimes they got very violent. One news van driver in the city of Peshawar shot and killed. Three police officers reportedly shot in the city of Karachi.

Here in the capital of Islamabad, protests are dying down. Here is what they looked like earlier today.

(BEGIN VIDEOTAPE)

SAYAH (on camera): Friday prayers have just concluded. And what we're seeing are some of the largest and most intense protests yet here in Pakistan.

Now what you see over there are shipping containers. Police are using them to block off the path to the diplomatic enclave. That's where the foreign embassies are, the U.S. embassy, the French embassy.

Now what you seem to have here is some people urging protesters to rush police officers and others, saying don't go. Stay put. And they can't seem to decide what to do.

So at this point, it's basically a free-for-all. What you see is these protesters just teeing off with objects. And police just holding up their shields and blocking the objects.

Now police officers are starting to throw rocks. And I think it's time for us to move back a little bit.

Now what often gets lost in these dramatic pictures is the actual numbers. How many people are here. And if you do a quick count, there's no more than, at most, 400 or 500 people here.

All right. We had to make a run for it because police fired off several canisters of tear gas. We had difficulty seeing and breathing. So we came back here to where there's a rally taking place.

Here is what we observed. A lot of the protesters who are throwing objects, sticks, stones, they're young men, teenagers in their 20s. And you see them with this mischievous smile. And you get the impression that they're not offended by any anti-Islam movie that they're getting a rush out of facing off with police.

And then you see some of the signs, the chant against the U.S. government, against the NATO supply routes, and again, that's a sign that this is more than just about an anti-Islam movie. There's a lot of anger about U.S. foreign policy, the occupation of Afghanistan. And a lot of people here will tell you that what's boiled over is this deep seated anti-American sentiment that's been here in Pakistan for a very long time.

(END VIDEOTAPE)

SAYAH: When asked why the Pakistani government declared this Friday a national holiday, in many ways inviting people to come out and protest, government officials said they had to address public sentiment.

Carol, and I think that's a decision that's going to see a lot of criticism in the coming days.

COSTELLO: Reza Sayah, thanks so much. These protests come despite efforts by the President and Secretary of State to calm things down in Pakistan. Both starred in a public service announcement that ran on seven TV networks in Pakistan.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Since our founding, the United States has been a nation that respects all faiths. We reject all efforts to denigrate the religious beliefs of others.

HILLARY CLINTON, U.S. SECRETARY OF STATE: Let me state very clearly and I hope it is obvious.

(END VIDEO CLIP)

COSTELLO: Some Republicans, though, were not so happy in the State Department shelled out $70,000 of taxpayer money to continue what they call the Obama apology tour.

(BEGIN VIDEO CLIP)

SARAH PALIN, (R) FORMER ALASKA GOVERNOR: In the midst of this apology tour, we see our embassies in the Middle East under siege. So how is that U.S. apology tour working out for you, Mr. President?

Look, if our fearless leaders insist on waving the white flag like this, we may need to bring our troops home from the Middle East. No more blood. No more U.S. treasure spent.

(END VIDEO CLIP)

COSTELLO: In the meantime on Capitol Hill, extraordinary briefings are held behind closed doors as lawmakers demand answers. Today, many are fuming. They say top officials gave little insight into the consulate attack that killed the U.S. ambassador to Libya and three other Americans. And Republicans say the White House was too slow and concluding it was an act of terrorism and not an angry mob.

Listen to how that assessment has changed since Sunday.

(BEGIN VIDEO CLIP)

SUSAN RICE, U.S. AMBASSADOR TO THE UNITED NATIONS: And we are of the view that this is not an expression of hostility in the broadest sense towards the United States or U.S. policy, it's proximately a reaction to this video and it's a hateful video that had nothing to do with the United States. And which we find disgusting and reprehensible.

VICTORIA NULAND, STATE DEPARTMENT SPOKESWOMAN: We've heard a number of different things from Libya. I would simply say that what -- the comments that Ambassador Rice made accurately reflect our government's initial assessment.

SEN. JOSE LIEBERMAN, (I) CONNECTICUT: Let me begin by asking you whether you would say that Ambassador Stevens and the three other Americans died as a result of a terrorist attack.

MATTHEW OLSEN, DIRECTOR, NATIONAL COUNTERTERRORISM CENTER: Certainly on that particular question, I would say yes, they were killed in the course of a terrorist attack on our embassy.

(END VIDEO CLIP)

COSTELLO: CNN senior congressional correspondent Dana Bash has been talking to lawmakers.

Dana, what are they telling you this morning?

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Well, when it comes to those who are the most and have been, really, the most critical of the administration and their response to this, like John McCain, they're not happy. You played a pretty interesting evolution of the response from the administration and that also ended with the White House press secretary on the President's plane yesterday saying it was terrorism.

Listen to what John McCain said coming out of a classified briefing with Hillary Clinton and others yesterday.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) ARIZONA: I'm stunned that they thought that it was some kind of spontaneous demonstration. It shows the level of their -- abysmal level of their knowledge about fundamental aspects of terrorist attacks and militant operations to say that they didn't believe it was a terrorist attack to start with and go on every nationwide media outlet and say that.

(END VIDEO CLIP)

BASH: Now he was speaking outside of a briefing that was for all senators with Hillary Clinton, members of the -- people who are investigating, the Defense Department and others. They also had a very -- briefing for all members of the House. And by and large, Carol, talking to Democrats and Republicans, they still felt frustrated not necessarily just on the substance of it, but about the fact that they feel that they're getting more information from CNN and other media outlets than they did from the administration -- Carol.

COSTELLO: Dana Bash reporting live from Capitol Hill this morning.

President Obama may have a 40-point advantage over Mitt Romney when it comes to Hispanic voters. But that doesn't mean he had an easy night during a Univision forum. The President was repeatedly asked about his broken promise to push through immigration reform and his administration's role in the "Fast and Furious" gun operation. But it was this line from the President that really resonated.

(BEGIN VIDEO CLIP)

OBAMA: I've learned some lessons over the last four years. And the most important lesson I've learned is that you can't change Washington from the inside. You can only change it from the outside. That's how I got elected and that's how the big accomplishments like health care got done was because we mobilized the American people to speak out.

(END VIDEO CLIP)

COSTELLO: Governor Romney pounced, telling voters in Sarasota, Florida, that he is the candidate of change.

(BEGIN VIDEO CLIP)

MITT ROMNEY, (R) PRESIDENTIAL NOMINEE: The President today threw in the white flag of surrender again. He said he can't change Washington from the inside. He can only change it from outside. Well, we're going to give him that chance in November. He's going outside.

(END VIDEO CLIP)

COSTELLO: For Governor Romney, it was a chance to play offense instead of defense. It's been a rough week for the governor. His off-the-cuff remarks in a secretly recorded video gave Democrats plenty of ammo. Republican pundits didn't hold out either. Former Reagan speechwriter and "Wall Street Journal" columnist Peggy Noonan blasted Romney again in her column this morning.

"The Romney campaign," she says, "has to get turned around. This week I called it incompetent but only because I was being polite. I really meant 'rolling calamity'."

Romney's wife, Ann, is not taking kindly to this continuing criticism.

(BEGIN VIDEO CLIP)

A. ROMNEY: Stop it. This is hard. You want to try it? Get in the ring. This is hard. And, you know, it's an important thing that we're doing right now. And it's an important election. And it is time for all Americans to realize how significant this election is. And how lucky we are to have someone with Mitt's qualifications and experience and know-how to be able to have the opportunity to run this country.

(END VIDEO CLIP)

COSTELLO: Mrs. Romney made those comments in an interview with Radio Iowa. We'll talk more about these comments in the next hour of NEWSROOM.

In the world of health, dying from lung cancer, skin cancer or breast cancer may soon be as rare as dying from pneumonia. That's the hope of doctors at MD Anderson Cancer Center -- Cancer Center in Houston who say they will soon be able to radically lower the death rate from several cancers.

CNN chief medical correspondent Dr. Sanjay Gupta got exclusive access with researchers in the world's largest cancer center.

(BEGIN VIDEO CLIP)

DR. RONALD DEPINHO, MD ANDERSON CANCER CENTER: We're in a position to make dramatic impact on cancer mortality in this decade.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: You're saying if we do everything right, in five years from now, there will be far fewer people dying from cancer, right?

DEPINHO: Correct. I think that with the existing knowledge in the application of what we know now we could begin to see dramatic declines in mortality that would accelerate in years five through 10 and beyond set the stage for ultimate control of the disease.

(END VIDEO CLIP)

COSTELLO: Sanjay joins us now.

So this appears to be stunning.

GUPTA: It is. And you're hearing, again, from the president of the largest cancer center in the world saying these things. So, you know, I mean you have to -- really pay attention, which we did. We got this access. They call it the moon shot program, Carol, they're conjuring up the whole energy and enthusiasm of putting a man on the moon, putting that same thing toward cancer. So they get some starting numbers with some of the most common cancers. There's a list of cancers they're targeting over the next few years.

Take a look at the list. The common ones. Melanoma, lung cancer is the biggest cancer killer, prostate cancer, the triple-negative breast cancer, Carol, as you may know one of the hardest to treat breast cancers.

You can look at the list. They think within the next five years, significantly reduce cancer death rates in all of those cancers.

COSTELLO: Well, the intent, their intent is to cure but hasn't that been the intent all along? GRACE: Yes, in some ways it has. Although, you know, it's one of these things where, you know, the -- other achievement sort of to get there, you know, had been significant at times. But in terms of actually reducing, as you say, turning it into the likelihood of a pneumonia death, you know, really improving screening, for example, detection.

Who do you screen for lung cancer has been a big question. They think they've figured that out. And also individualizing therapy. So if you had cancer, for example, the way that you would treat it would be very different than the way the next person was treated. So understanding the genes of you and giving you the specific treatment that works as opposed to a shotgun approach. It's using all the science that we already know.

COSTELLO: So I know you spent a lot of time in the research lab. So what kinds of things did you find out?

GUPTA: Well, I think one of the areas where they really are going to make a difference, I think, is melanoma. And some of the video that you see even behind you is specifically in looking at taking your body's immune system, cells from your body's immune system and teaching them that that cancer is bad.

COSTELLO: Wow.

GUPTA: So, you know, your body's immune system fights things all the time. Focus that immune system on the cancer. So it's what's happening to this patient that you're watching on the screen right now. It's one of the first patients in the world to be having this done.

COSTELLO: I hope it works. I mean it's just --

GUPTA: Me, too. Right. And -- but again, you're hearing this from the scientists themselves as opposed to a policy mandate or some sort. Money is tight. It's very hard to fund these things but they still think they're going to get it done.

COSTELLO: I hope so because I think everyone, you know, has had a loved one die from cancer.

GUPTA: It affects everybody in some way.

COSTELLO: Yes.

GUPTA: Yes.

COSTELLO: Thanks, Sanjay.

GUPTA: You got it, Carol.

COSTELLO: Don't miss Sanjay's special report, "CHASING THE CURE", this weekend, airs Saturday at 4:30 p.m. Eastern and Sunday at 7:30 p.m. right here on CNN. It's been a long night for Apple fans but the wait is over. This is a live look from New York where people are waiting in line to get their hands on that new iPhone. We'll take you there live. Maybe we'll talk to the last person in line because imagine if you were the last person in line and they ran out of iPhones. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Don't be surprised to see a lot of people playing with the new smartphones today. Apple's iPhone 5 went on sale just about an hour ago here on the East Coast. But all across the country, from New York, to Chicago, to Los Angeles, Apple fans have been lining up for days. Some people were even selling their spots in line with prices reaching several hundred dollars.

Maggie Lake joins us live from New York. So, Maggie, is the fanfare dying down a bit?

MAGGIE LAKE, CNN CORRESPONDENT: It is. It's sort of shifting, Carol, I'd say in sort of anticipation of getting in to the now fascination of getting into the gadgets they've been waiting for. You know I don't know if you're a football fan. But the only way to describe a day like today is really this is the technology world's version of tailgating. This isn't just about the product itself, it's really about the experience that happens here.

I want to show you what's actually going on in the line. As you could see, you still have this sort of spectators and there are still some customers that are penned up, snaking their way around. But we can actually see the end of the line now. Earlier this morning it wrapped around the block.

Who are these people? Some of them are people who are -- are die-hard Apple fans. Other people tried to preorder. It was so popular, remember, two million phones sold out in 24 hours, that they couldn't do it over the Internet. So they were forced to come down here and cue up and wait on line to get their hands on it.

Some are upgrading from an older version, a 3 or 4 and they've been waiting and finally going to get this one. A lot of people really interested in being able to tap into that faster network, that 4G network. And have the faster chip so they can -- improve their experience. So a lot of very satisfied people coming out. To the one you talked to, they say it was worth it, even the folks who were here for eight days -- Carol.

COSTELLO: Okay, so I'm wondering, for the people who were for eight days, let's say you're last in line. I'm obsessed with this for some reason. It would be a nightmare if you're last in line, you get into the Apple store and they don't have any more phones.

LAKE: This is it. And we actually have to grab the -- PR people and all of the employees are totally focused on the customers. And we're actually -- pan it on the other side. We haven't had a chance to talk to them about whether they're going to sell out. If the early buzz as any indication, that seriously a real threat. So you need to call the store before you head down to one if that's your plan even if there's no line outside.

Analysts who watched this, Carol, say they expect Apple to sell 50 million of these by December, through the holiday season. And that's looking a little conservative now. So there is huge appetite for this phone even though there's a lot more competition. There are a lot more smartphones out there.

Google, android operating systems, Samsung Galaxies. They're very popular but they don't seem to kind of create that enthusiasm and fervor that these Apple products do.

(LAUGHTER)

COSTELLO: That's just insane. Maggie, thank you.

"Talk Back," coming your way next. The question for you this morning: Are the President's ads in Pakistan good strategy or an apology? Facebook.com/carolCNN.

(COMMERCIAL BREAK)

COSTELLO: Now it's your chance to "Talk Back" on one of the big stories of the day. The question for you this morning: Are the President's ads in Pakistan good strategy or an apology?

They're chanting "Death to America" in Pakistan this morning, the protests sparked by that cheesy anti-Islam movie trailer, at least in part. And while the angry crowd is relative small, one person has died. Despite the best efforts of President Obama and Secretary of State Clinton who appeared in a public service announcement on Pakistani television.

(BEGIN VIDEO CLIP)

OBAMA: Since our founding, the United States has been a nation that respects all faiths. We reject all efforts to denigrate the religious beliefs of others.

CLINTON: Let me state very clearly, and I hope it is obvious that the United States government had absolutely nothing to do with this video. We absolutely reject its content and message.

(END VIDEO CLIP)

COSTELLO: The U.S. State Department shelled out $70,000 to run those ads. Its point, to say to the Arab world it wasn't the U.S. government that made that anti-Islam film. It was a private individual, and this happens sometimes in a free society.

State Department spokeswoman Victoria Nuland said, quote, "The sense was that this particular aspect of the President and Secretary's message needed to be heard by more Pakistanis than had heard it." End quote.

The President and Secretary Clinton did not say the word sorry in the ad but some administration critics say sorry was certainly implied. (BEGIN VIDEO CLIP)

PALIN: Well, in the midst of this apology tour, we see our embassies in the Middle East under siege. So how is that U.S. apology tour working out for you, Mr. President?

Look, if our fearless leaders insist on waving the white flag like this, then they need to bring our troops home from the Middle East. No more blood. No more U.S. treasure spent.

(END VIDEO CLIP)

COSTELLO: We, as Americans, cherish our free speech rights. And it doesn't appear many would favor the U.S. government or Google banning the movie from the Internet, but people are dying. So as president, what do you do? Talk tough or try to calm things down?

"Talk Back" question for you today: Are the President's ads in Pakistan good strategy or an apology? Facebook.com/carolCNN. Facebook.com/carol CNN. Your comments, later this hour.

General Motors, GM, recalls nearly half a million of its vehicles. Are you driving one of them? We'll run down the list for you.

(COMMERCIAL BREAK)

COSTELLO: Good morning. Happy Friday to you. I'm Carol Costello. Stories we're watching right now in the NEWSROOM. We're seconds away from the Opening Bell on Wall Street. Investors hoping to close higher for a third straight week. Ringing the bell today, execs from Spirit Realty Capital. The company celebrating its initial public offering.

General Motors is announcing a couple of recalls. The first involves possible transmission problems in the Chevrolet -- and Chevrolet Malibus, rather, Saturn Aura and Pontiac G6 models. They were made between 2007 and 2010 and all four have four-speed automatic transmissions. All four, I should say, have automatic transmissions. That's a better way to say it. Nearly a half a million cards are included in this.

The second recall is for the Chevrolet Sonic Subcompacts. A malfunction may leave drivers unaware when a turn signal bulb goes out.

New anti-American protests are erupting today in much of the Muslim world. Once again they're fueled by outrage over that film that mocks the Prophet Muhammad. The U.S. has closed a number of embassies and diplomatic offices for the day as a precaution.

In response to all of those protests, there's a new ad running on television in Pakistan that might seem a little different than the rest. The ad features President Obama and Secretary of State Clinton denouncing the anti-Islam video that hit YouTube last week and sparked protests around the world.

(BEGIN VIDEO CLIP)

OBAMA: Since our founding, the United States has been a nation that respects all faiths. We reject all efforts to denigrate the religious beliefs of others.

CLINTON: Let me state very clearly, and I hope it is obvious that the United States government had absolutely nothing to do with this video. We absolutely reject its content and message.

(END VIDEO CLIP)

COSTELLO: The State Department said it's normal to buy air time on Pakistani TV for public service announcements. Republicans? Well, they disagree. They say America should never apologize for free speech rights, even with all those protests going on.

Joining me now is Andrew McLaughlin, former Google policy director. Welcome, Andrew.

ANDREW MCLAUGHLIN, FORMER GOOGLE POLICY DIRECTOR: Good morning.

COSTELLO: You had some part in determining what Google's standards were in posting videos, like on YouTube and stuff. Can you tell me what went into that policy-making decision?

MCLAUGHLIN: Sure. Well, when I joined Google, Google was just in the process of going from being a mostly U.S. and European company to really being a global company. That accelerated when Google bought YouTube. So we had to figure out what kinds of rules would apply to the videos that people were posting from all over the world.

The amazing thing about the Internet is that it's a global platform. It crosses national borders. But we still have governments and not only dictatorships, we also have democratic governments like those in Germany and Turkey, for example, that have rules about free speech that are different from the rules we have in the United States.

The essence of Google's rules and the YouTube rules that we're seeing in action today is to respect the wishes of countries that have different views about particular kinds of content, like Nazi speech in Germany. But to limit the restrictions on videos to those countries alone. So that's why we see Google blocking this anti-Islam video in Egypt, Libya, India and Indonesia, but not in the rest of the world.

COSTELLO: Well, would it help to block it anywhere right now? I mean it seems just the fact that people are hearing about it causes them to protest in some countries.

MCLAUGHLIN: Well, that's a really great point. And one of the -- one of the really interesting things about the Internet that you especially see in a country like China is that when you take a video off of one particular platform, it doesn't keep it out of the public realm. So when the Chinese government doesn't -- sees tweets that they don't like, they may take those tweets down but they're mirrored in so many places that they can't kill it off entirely. COSTELLO: Well, it is interesting that one of the actresses that appeared in that cheesy movie trailer, she now says she's getting death threats because of this posting on YouTube. She wants it taken down. A judge denied her request in California.

But would Google take death threats against her into account now that they've come to light?

MCLAUGHLIN: Well, the right response to death threats like that is to go after the people making the death threats. It's to do law enforcement and to protect citizens the way that they should be protected, it's not to take the speech down. That's at the core of our First Amendment tradition in this country, that the response to bad speech or terrible speech is more speech, not restrictions.

COSTELLO: So, let's say, though, that the violence in other countries continues. And it continues to get worse. Will there be some point when Google executives will sit down again and talk about this issue?

MCLAUGHLIN: I'm sure they'll be talking about it every day. It seems to me, though, that the right response here is to do the kind of thing that President Obama and Secretary Clinton have been -- just been doing in Pakistan, which is reminding the world that a devotion to free speech does not mean that you agree with everything everybody says.

Our own First Amendment says that -- in its text it says we believe in free speech but we also believe in the free exercise of religion. And those two things can go hand in hand. We can condemn evil speech at the same time that we stand up for the right of those people to say it.

COSTELLO: Andrew McLaughlin, former Google policy director, thank you so much for joining us today.

MCLAUGHLIN: Thank you.

COSTELLO: No one likes paying taxes. It can be a full-time job looking for ways to get around paying taxes. But it seems like Microsoft, they play the game and they won. They're saving billions and it's all legal.

(COMMERCIAL BREAK)

COSTELLO: Turns out there are plenty of legal ways to avoid paying billions, yes, billions with a B to Uncle Sam. In fact a Senate panel says Microsoft saved nearly $7 billion by using loopholes.

I know, you've got to be kidding me. Alison Kosik joins us now. $7 billion?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes. It is -- it is amazing. But you know we hear about this all the time, Carol. And we, you know, discuss this regularly, I'd say, about these companies that ship this money offshore. And the natural reaction from a lot of people is anger. But they're not doing anything wrong, these company. What they're doing is legal. In fact, Congress is looking into this. The Senate's permanent subcommittee on investigations put together a report that included subpoenas but companies also voluntarily took part.

Here's what if found. Since 2009 Microsoft has saved billions, with a B, on its tax bill by taking advantage of these legal loopholes. Here's an example for you. The company transferred half of its revenue from U.S. retail sales to a Puerto Rican subsidiary saving it $4.5 billion between 2009 and 2011.

Hewlett Packard is tapping into overseas resources, too. A few years ago it held $12.5 billion in foreign cash, but just $800 million in U.S. money. It only had to pay taxes on the U.S. portion. But, again, Carol, the panel says nothing is illegal here. Just the way our tax code works. You know, it's part of the reason that, you know, re-jiggering our tax code has become such a hot political issue -- Carol.

COSTELLO: You got that right. So how do the companies justify this?

KOSIK: Okay. So here's what's interesting. Microsoft's head tax guy spoke at a hearing about it and he said that foreign revenue grows helps to support the growth of our U.S. operations, creating additional U.S. jobs and supporting and economic ripple effect that leads to greater growth and local communities.

Okay. Well, we got a call into Microsoft to see just how many jobs they've added in the U.S. since using these loopholes. Haven't gotten a call back yet. But there is a report that it commissions back in March and said that Microsoft is spending in other areas, creating millions of jobs. In fact Microsoft said cloud computing itself will wind up creating 14 million new jobs around the world by 2015. Most of those positions, though, Carol, are expected to be in emerging markets -- Carol.

(LAUGHTER)

COSTELLO: Well, I'm sure you'll continue to await the call from Microsoft and when you get it --

KOSIK: I will.

(LAUGHTER)

KOSIK: I'll let you know what they say.

COSTELLO: Thanks, Alison.

Checking our top stories at 41 minutes past the hour.

The Afghan surge is officially over. The last of the 30,000 additional American troops sent to Afghanistan back in 2009 came home yesterday. Right now, about 68,000 troops remain in that war-torn country. President Obama says those troops should be home by the end of 2014. Space shuttle Endeavour takes to the sky one final time today. The shuttle will complete its three-day cross country piggyback flight, landing in Los Angeles. Yesterday, Endeavour flew over Tucson, Arizona, in a tribute to former Congresswoman Gabrielle Giffords and her husband, former NASA commander Mark Kelly.

Check this out. This could have been a really scary scene when a grenade is thrown on to a soccer pitch. Didn't even know what it was. It happened during a match in Iran. The player, you see, picked it up. And it was a grenade. He didn't realize it. He threw it off the field. And that's when it exploded. The match was stopped for a short time. But it did finish.

(COMMERCIAL BREAK)

COSTELLO: Space shuttle Endeavour will fly over Los Angeles, Sacramento and San Francisco today before finally landing at LAX. And late night comedians are wondering, what's in the cockpit?

(BEGIN VIDEO CLIP)

CONAN O'BRIEN, TALK SHOW HOST: I'm going to start with good news. The space shuttle is going to be driven through Los Angeles tomorrow. Isn't that nice? Through Los Angeles. That's exciting.

Yes. The bad news, it's going to be driven by Lindsay Lohan. Her co- pilot, Amanda Bynes.

(END VIDEO CLIP)

COSTELLO: That's so wrong.

Speaking of Lindsay Lohan, we now have video of that incident that led to her arrest yesterday. But it's really hard to tell if Lindsay Lohan actually hit someone with her car or not.

A.J. Hammer, host of "SHOWBIZ TONIGHT", I'm sure you've studied this tape, A.J. What did you see?

A.J. HAMMER, HLN HOST, "SHOWBIZ TONIGHT": I have studied it very closely, Carol. And the NYPD says that Lohan was driving a Porsche Cayenne into the parking of a hotel in Chelsea, New York City when she allegedly hit a pedestrian who works at a restaurant next door.

The specifics are still pretty unclear. Take a look at this video. It's pretty unclear. Obviously, it's black and white. It shows for less than 30 seconds and was shot by a private surveillance camera and obtained by the police the night of the incident.

Now the video, as you're seeing it shows a dark car with its headlight on passing through a group of pedestrians as it turns from the street into an entrance of the hotel. And as the car disappears into the entrance and out of frame, this blurred figure is seen appearing to run after the car.

In the video, it appears the pedestrian remains standing the entire time, but the NYPD confirmed a Wednesday report that the alleged victim was treated at a hospital for a knee injury after the incident.

So even though the video may seem to suggest no one was hit, we are still not exactly sure what happened. A rep for Lohan however telling "SHOWBIZ TONIGHT" this. "As the facts of the situation come to light it is going to be apparent that there was no accident."

And for Lindsay's sake, Carol I hope that is the case.

COSTELLO: I hope so too. Hey, he might have injured his knee running after the car. Who knows?

HAMMER: Who knows.

COSTELLO: Strange.

Let's talk about the Emmys that's coming up Sunday night. Who do we expect to win?

HAMMER: Well, one of our favorite shows is expected to do very well in the comedy category Carol. "Modern Family" is seen as a favorite to win.

COSTELLO: "Modern Family."

HAMMER: Absolutely, they may win Best Comedy. Four of the nominee for Best Supporting Actor this year are from "Modern Family". So unless there's a split, I think we can expect to see one of them win that category. And it wouldn't be a surprise to see one of the women on the show win for Best Supporting Actress.

Now on the drama side we have a bit of suspense this year. I keep looking around and see experts predicting a big night for "Homeland", which wouldn't be a huge surprise. But the Showtime series is up against some pretty stiff competition. You have "Mad Men" going up for what would be a record fifth Emmy in a row in the Best Drama Category.

Those shows are up against two of my absolute favorite television shows, the British import "Downton Abbey" and the spectacular "Breaking Bad".

So I don't even know who to root for on Sunday night. However, I'm still in the middle of season five of "Breaking Bad". I was watching, I watched three episodes last night Carol. it is insane how good that show is.

COSTELLO: I have to -- I'm going to go to the -- no, I guess I can get it online.

HAMMER: It's amazing.

COSTELLO: Okay, I'll get whatever they're called online. Season one. That's where I have to start. A.J. Hammer.

HAMMER: Absolutely.

COSTELLO: Thanks so much.

Next hour A.J. will be back to talk about new photos of Jessica Simpson's little baby.

(COMMERCIAL BREAK)

COSTELLO: "Talk Back" question of the day: Are the President's ads in Pakistan good strategy or an apology?

This from Khalil: "A great strategy. We have to clean up our act in the Middle East, bottom line."

This from Marquis: "I just think it's the truth. This is the right course of action. The next being a stern cease and desist followed by a surgical military action if there is an escalation or if the local government fails to act."

This from Carolyn: "It's a waste of $70,000 in taxpayer money. So before you applaud Obama make sure you're a taxpayer. The White House and the media know that video did not cause the embassy attack or this violence. Actually you have a point with the consulate in Libya."

But this -- today's violence in Pakistan, we talked to protesters there and it indeed in part caused people to protest in Pakistan.

This from Marcelo: "Don't care what it is but if it saves one American life I support it."

Please keep the conversation going. Facebook.com/CarolCNN.

Note to NFL coaches, lay off the replacement refs. The league sends down a warning and the next violator will get more than a penalty flag.

(COMMERCIAL BREAK)

COSTELLO: The NFL is warning all 32 teams to watch its behavior with the replacement refs -- in other words, be nice. The move comes after a few coaches were seen verbally abusing officials in last weekend's games. The NFL says if the same conduct happens this weekend the player or coach will get a penalty and then they will hear from the league office.

No refs verbally attacked in last night's game but the Giants smacked around the Panthers. New York scored the first four times it had the ball and went to blow out Carolina 36-7. Eli Manning was masterful, completing 27 of 35 passes. But boy was it a rough night for the Panthers' Cam Newton. He was picked off three times.

To baseball now, the Washington Nationals trying to clinch a playoff spot. Ryan Zimmerman, here he is, smacks the ball into the gap in left center. Bryce Harper comes all the way from first to score. So the Nats go on to beat the Dodgers, 4-1. Washington has its first baseball team in the postseason since 1933.

Tiger Woods shares the lead of the PGA tour championship in Atlanta. Tiger shot a 4 under par 66 in the first round. His short game looking pretty well. Finished with six birdies. Tiger is one of five golfers who can take home the FedEx Cup and the $10 million bonus by winning this tourney.

That's a look at sports this morning.

Tourists going on a safari want to get close enough to wild beasts to take that perfect picture. But some tourists in Kenya got an image of a cheetah they will never forget.

Here's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): It was just another safari in Kenya when the cheetah the tourists had spotted decided to hitch a ride. Or at least a seat. And thus began 45 minutes of eye- to-eye contact only a foot or two from a creature one couple dubbed --

UNIDENTIFIED FEMALE: Rita. Rita the cheetah.

MOOS: Cate Girskis's husband was the one shooting the video.

CATE GIRSKIS, SAFARI TOURIST: How are you feeling there, Girskis?

UNIDENTIFIED MALE: Oh, my God. My heart's going to beat out of my chest.

MOOS: Although not known for viciousness, they easily kill their prey.

GIRSKIS: I'm not sure that I was breathing. And my knees were buckling. My whole body was shaking. She was stunning.

MOOS (on camera): When the cheetah leaped up, the safari guide told the tourists exactly what not to do.

GIRSKIS: Don't move. Don't talk. Hakuna matata.

MOOS (voice-over): The expression made famous by "The Lion King".

(MUSIC)

GIRSKIS: She wasn't interested in us at all.

MOOS: for her the vehicle was just a perch with a view, so she could scan for prey. After 45 minutes, Edward the guide started the engine. And seconds later, Rita the cheetah stood up. Soon she presented a new threat.

UNIDENTIFIED MALE: Don't spray us now.

MOOS: Not at all farfetched. There's a famous Animal Planet video in which Keekaye (ph) the cheetah answers the call of nature -- through the sunroof into the napkin of a zoologist trapped below. But Rita behaved. (on camera): The tourists realized later that the license plate on their vehicle began with the letters KAT. Though spelling cat with a K is cheetah-ing.

Finally --

UNIDENTIFIED MALE: Yes. Thank goodness. Oh, man.

GIRSKIS: I can breathe.

UNIDENTIFIED MALE: Whoa. Bye-bye.

GIRSKIS: It was elation and relief.

UNIDENTIFIED MALE: Oh.

MOOS: They had but one request of their guide.

GIRSKIS: Edward, if we could get a lion up there next.

MOOS: Actually cheetahs parking themselves on cars and sun roofs are pretty common on YouTube. It's almost as if it's raining cats.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)