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Congress Leaves FAA in Limbo; Wall Street Tries to Rebound Today; White House's Economic Plans; Students Feel Pinch in Debt Deal; Mubarak on Gurney, in Cage at Trial; Man Jumps White House Fence; Prostitution Sting at Donut Shop; Cops Bust Lemonade Stand; Deadly 100-Degree Heat Streak; Oprah Gets an Oscar; "Funeral" for Sheen's Character; Model Wants $46K in Child Support; New "D.B. Cooper" Developments; D.B Cooper's "Niece" Speaks Out
Aired August 03, 2011 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PHILLIPS: It's 10:00 a.m. on the East Coast, 7:00 a.m. out West. I'm Kyra Phillips. Thanks for joining us.
Here are some of the stories that have us talking this morning.
We're watching Wall Street. The Dow plunged 266 points yesterday for its eighth consecutive loss. So far right now, Dow Industrials down 14 points.
Congress takes a break, thousands of workers lose their paychecks. A new crisis facing the FAA and the air travellers who rely on it.
And a trial is underway for former Egyptian President Hosni Mubarak. He could face execution if convicted in the death of anti-government protesters.
The debt deal was signed, but the damage is done. Our nation's reputation is tarnished and we're all likely to pay one way or another. Brianna Keilar has the big picture for us.
Ted Rowlands has some big casualties. Thousands of jobs now thrown into limbo and once again you can blame Congress.
And then Poppy Harlow there takes a wider view of the jobs market. It's pretty grim.
And George Howell showing us how college students are about to take a huge hit.
Alison Kosik, of course, at the New York Stock Exchange. All right, let's begin on Wall Street, shall we? Markets trying to rebound after eight days of consecutive losses. Alison we're looking at numbers right now, up 21 points.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Numbers are picking up a bit of steam right now. I'll tell you what, if the Dow ends up in the red today, it will be the first nine-day losing streak since 1978 that's more than three decades ago. Of course, that's after that 266 point drop yesterday. It is pretty standard though to see a bit of a balance after such a big sell off. Investors are getting in there, buying those beaten down stocks.
But I'll tell you what, those investors are really concerned about what's happening here with the economy. Their big concern is if this recovery is stalling out after we have gotten a number of dismal reports on spending, manufacturing and economic growth.
And you know what, Kyra, the "R" word is being tossed around, recession, the economists and traders that I talked to this morning are saying, you know what, the odds are increasing for another recession.
Now Moody's has stamped the U.S. credit rating with a negative outlook. It is being taken more seriously than that downgrade by a Chinese rating agency, which is independent of the Chinese government there.
But Moody's is still highly respected here in the U.S., even though it missed by a long shot calling the financial crisis ahead of time. Now we did get a bit of good news today on the jobs front.
ADP reported that private sector employers added 114,000 jobs in July, but you know what, ADP missed terribly in June, so investors aren't putting too much stock in it. They really want to wait and see what the official government jobs report says and that is coming out on Friday. Kyra --
PHILLIPS: OK, Alison. Thanks.
Now let's head over to the White House, shall we? Brianna Keilar, what's the administration saying about the nation's credit ratings holding firm?
BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: You know, Kyra, we have pressed White House Press Secretary Jay Carney on this for many briefings and he has said the White House cannot control what the credit rating agencies do, but he said this debt ceiling deal at least relieved some of the uncertainty and that should work to a positive effect.
Now what we're really seeing here at the White House is a pivot to the jobs message. The president has kind of been chained to the white house, chained to Washington dealing with the debt ceiling crisis.
And now he's moving to jobs saying you can't just grow the economy through deficit reduction. So here in the next few weeks, expect him to take his message very much on the road. Kyra --
PHILLIPS: OK, and we will follow that bus tour. That's for sure. Brianna, thanks.
Now to the thousands of jobs being held hostage by another impasse on Capitol Hill. Lawmakers left on some recess without funding the Federal Aviation Administration. Thousands of employees face five weeks without a paycheck and more than a billion dollars in tax money is just going to go to waste.
Ted Rowlands at O'Hare Airport in Chicago. So Ted, a lot of people asking, all right, what about our safety, is it at risk? Will it be compromised?
TED ROWLANDS, CNN CORRESPONDENT: Well, the FAA says absolutely not, everybody is safe and here's why, basically TSA folks and air traffic controllers, they are paid from a different pot of money.
So the FAA has basically been destabilized on many fronts, but safety is not a concern according to the FAA for passengers that are planning to fly, don't worry about that.
But if you're a taxpayer, you should worry about basically the bleeding that the federal government is doing during this impasse as you mentioned, thousands, millions of dollars of uncollected taxes.
Plus you've got job loss because of this. There are 4,000 FAA employees that are now furloughed. They're sitting at home not being paid, and an estimated 70,000 construction workers are also sitting at home not getting paid because the folks on Capitol Hill did not come to an agreement on whether our House would fund the FAA moving forward before they went on their summer recess.
Everybody is upset. Take a listen to Randy Babbitt from the FAA, he is livid.
(BEGIN VIDEO CLIP)
RANDY BABBITT, FAA ADMINISTRATOR: This can't go on a day longer, much less six weeks longer. We're going to suffer a lot of long-term damage. We have billions of dollars in construction money that should be going out the door, it's not, this is money that's available, it's simply we can't spend it.
(END VIDEO CLIP)
ROWLANDS: And of course people are frustrated with Washington around the country. We talked to a couple of passengers this morning here at O'Hare, one lady says she has a solution to all of this, take a listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Cut your vacation short, get your ass back to Washington and figure something out quick.
(END VIDEO CLIP)
ROWLANDS: There you go, Kyra.
PHILLIPS: Plain and simple. Ted, thanks. All right, let's move on now, shall we? Let's talk about our kids in college. Guess what? The debt deal means his or her loan could actually cost more, thousands of dollars more. George Howell has been talking to students across the country this morning. He's actually live on Kennesaw State University campus just outside of Atlanta. What are students telling you?
GEORGE HOWELL, CNN CORRESPONDENT: Kyra, the truth of the matter, there's still a lot that is yet to be determined, specifically when it comes to the private loans that parents take out for kids to go to schools like this.
Now here's what we do know, it's a mixed bag of good and bad news for students. First off, the debt deal eliminates subsidies for graduate students. Now the government currently pays for the monthly interests while students are in school.
That is no longer the case, that tax on thousands of dollars to the overall cost. It also eliminates a credit that saves students money who make 12 months of on time payments. So that incentive is gone.
Now the good news in all of this, of the $22 billion saved, $17 billion now goes to protect Pell Grants, a big deal to students. We talked to a few here who are still concerned.
(BEGIN VIDEO CLIP)
JEREMY WALKER, KSU STUDENT: I have heard some of the loan rates are going to increase.
LATIA RICHARDS, KSU STUDENT: I think it's going to be hard for other students coming in to take out loans now.
AMANDA BALLOUP, KSU STUDENT: Education is really important to my family, so any way we have got to do that, we're going to do it.
(END VIDEO CLIP)
HOWELL: These changes kick in on July 1, 2012 and everyone right now watching to see what happens with the credit rating and interest rates, so a lot still to be determined. Kyra --
PHILLIPS: OK, George, we'll be watching that too and then 66,000 jobs were cut last month. That's a 60 percent increase from the month before so why all the layoffs? And does the debt ceiling deal mean more cuts to come?
Poppy Harlow will answer those questions for us. She's going to join us at 10:30.
I'll tell you what. We haven't been able to take our eyes off the bizarre pictures out of Cairo. Here they are if you haven't seen them yet. That's former Egyptian President Hosni Mubarak, wheeled into court on a gurney and put in a cage.
CNN Fred Pleitgen was actually in the courtroom. He joins us now on the phone. So Fred, what was it like?
FREDERICK PLEITGEN, CNN INTERNATIONAL CORRESPONDENT (via telephone): Well, I mean, it was pretty shocking to see Hosni Mubarak in that way inside that cage. Certainly, he looked very, very weak, very frail. He actually didn't speak very much at all during this entire trial..
The only thing that he did was he responded when the judge asked how he would respond to these allegations. He said all of what has been said today is not true. Those were the only words that we heard from Hosni Mubarak today.
And they were uttered in a very, very weak voice and I can tell you, there were, I would say, about 100 lawyers present at this trial and so the courtroom allow the prosecuting lawyers who are actually asking for the death penalty against Hosni Mubarak.
But even they said they were absolutely shocked to see him in that state. They said they felt this looked like a man who was very weak, a man who was basically on his way out, is the way that one of them put it.
But certainly this is something that definitely will have shocked a lot of people here in Egypt and indeed around the world who saw this and who know what Hosni Mubarak looked like when he was still in power.
PHILLIPS: And also, I mean, Fred, let's put this in perspective. We can't forget the live coverage we saw every single day of the thousands and thousands of protesters wanting democracy, all crowded there in Tahrir Square, you remember it well.
And then we saw the violence and all the allegations that came before that Mubarak was telling supporters, shoot and kill these protesters in Tahrir Square.
PLEITGEN: Yes, that of course, the main case that the prosecutor is trying to make here. They say that he is ultimately responsible for the killing of protesters during the revolution that started on January 25.
Now they're having trouble making a case that he directly issued orders for his police and interior minister forces to fire on the protesters because apparently there's been evidence that's been destroyed.
But they say because he was president at that time, because the buck stopped with him and because he was updated every hour on what was going on, on the streets, he had the possibility to stop it.
He didn't do that and therefore he is guilty of premeditated murder. That's the case that the prosecution is trying to make. Of course, Mubarak's supporters and his lawyers are trying to make a very different case, saying that he was ultimately not responsible for what happened.
One of the lawyers told me that he believes even if Mubarak is sentenced, he probably would not see a death sentence. You would probably see him behind bars in some sort of hospital facility until the end of his days, which many people believe is not many days that Hosni Mubarak has left.
PHILLIPS: All right, keep us posted, Fred. Thanks for calling in. Coming up, eye scanners to catch a crook, the newest tool for the NYPD.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: They can quickly identify who they have in front of them and what potential danger or risk they may pose.
(END VIDEO CLIP)
PHILLIPS: We'll show you how it works just ahead.
Plus, as the FBI works its most promising lead ever in the 40-year-old D.B. Cooper case, an alleged relative of the hijacker steps forward.
And a deadly heat wave baking Texas with 100-degree temperatures for 32 straight days. We'll take you there.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories cross country. A man with a backpack jumps the fence. The secret service jumps him. Security breach triggered a lockdown at the White House and it all unfolded live during CNN's "JOHN KING USA" last night.
Want a little extra sugar in your coffee? You better watch what you ask for. A worker at Dunkin' Donuts in Rockaway, New Jersey actually got busted for prostitution. Apparently, the code for her services was to ask for a little extra sugar.
A new cycling event rolls through Iowa. To cops cracked down on vendors selling food without a license. Yes, you know what's coming now. This poor 4-year-old girl, her lemonade stand got shut down. Cops say the law's the law.
The nation's midsection south is sweltering. In Dallas Fort Worth, it's been well over 100 degrees for 32 straight days. It was 99 at midnight and today could be the day that shatters the all- time high temperature of 113 degrees. Ed Lavandera is in Texas.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): In Texas, swarms of grasshoppers are invading dried out grass fields. In Oklahoma, there's barely enough hay to feed herds of cattle.
Across these crusty plains, lakes are evaporating, children hibernate, playgrounds are silent. Triple-digit temperatures have baked Texas and Oklahoma for more than a month. The summer of 2011 is a beat down of epic proportions. If that sounds dramatic, CNN I-Reporter Suzanne Newkirk knows these are desperate times.
UNIDENTIFIED FEMALE: We are sweltering and we're just asking for some relief here!
LAVANDERA: This week Dallas/Fort Worth could break its all-time high temperature of 113 degrees. In Dallas, the heat has killed 12 people so far. In Oklahoma, there's been 11 heat related deaths.
All but six of Texas's 254 counties are under a burn ban. The heat and dryness continues spawning wildfires like this large blaze in Tulsa, Oklahoma.
In San Angelo, Texas, bacteria that thrives in dry, hot conditions have turned this lake red. Even strong decades-old trees are withering under the scorching heat. Leaves are turning brown.
MIKE FOREST, OKLAHOMA ARBORIST: If it loses all its leaves and goes totally brown, it's done.
LAVANDERA: Texas electricity regulators are issuing emergency warnings urging people to conserve power, but who needs to power an oven when you've got a sizzling car. This Tyler Texas TV reporter's baked chocolate chip cookies in just over three hours.
UNIDENTIFIED FEMALE: My God, they're pretty hard.
LAVANDERA: Apparently, good enough to eat.
(END VIDEOTAPE)
PHILLIPS: The only good side, I guess, to this heat, but Ed, in all seriousness, you're joining us live from Dallas where you've been talking about the lake right behind you drying up, right?
LAVANDERA: Yes, we have seen that in many parts of the state where you have seen these lakes that -- lake levels dropping quickly in a town out in far west, Texas.
One lake in particular is at 1 percent capacity, which is threatening the drinking water for the town of Robert Lee out in far west Texas. So dry and heat and those temperatures today will be rising to some very dangerous levels.
Many people worried about the power today. In fact, the state regulators here in Texas urging people to conserve electricity, saying the likelihood of rolling blackouts today is very real.
PHILLIPS: All right, we'll be following it for sure very closely. Ed, thanks.
Coming up, 40 years later, it's the FBI's only unsolved hijacking. But now several new developments in the D.B. Cooper case. We'll talk to an author who got exclusive access to the FBI files.
(COMMERCIAL BREAK)
PHILLIPS: All right. Let's hit some showbiz headlines for you. She lost out on an Oscar for "The Color Purple," but Oprah Winfrey is finally being recognized by the academy. It's giving her a humanitarian award for her support of education, women and children issues.
Charlie Sheen, not quite as terrible to women and children. Now he's been sentenced to death. According to "Deadline Hollywood" the season premier of "Two and a Half Men" includes a funeral for Sheen's character. He was kicked off the show for, quote, "dangerously self-destructive conduct."
And '90s supermodel Linda Evangelista says it takes at least $46,000 to raise her kid. She's in court seeking child support from her son's dad. He is a billionaire we should point out.
The model mom says a chunk of the cash would go to full-time nannies and driver who double as security.
A mysterious man, a threatening note and a sky dive into the history books. The D.B. Cooper hijacking is one of this country's most fascinating unsolved cases.
So a few days ago, when the FBI confirmed reports of its most promising lead to date in the 40-year-old case, it got a lot of people's attention. Pretty good timing for author Geoffrey Gray, his book "Sky Jack: The Hunt for D.B. Cooper" comes out next week.
He joins us live from New York. So Geoffrey, just this morning another new twist in the case, ABC's "Good Morning America" actually ran an interview with a woman who claims she's D.B. Cooper's niece. Here's how she says she found out.
(BEGIN VIDEO CLIP)
MARLA COOPER, SAYS UNCLE WAS HIJACKER "D.B. COOPER": I was spying on them from around the back of my grandmother's house and I heard my uncle say, we did it, we -- our money problems are over. We have hijacked an airplane. They told my dad they wanted him to help him go back into the woods and find the money.
(END VIDEO CLIP)
PHILLIPS: So Geoffrey, what do you think? Do you believe her? Is she credible?
GEOFFREY GRAY, AUTHOR, "SKYJACK: THE HUNT FOR D.B. COOPER": You know, what I think is that D.B. Cooper mania is upon the land. This story to me is actually not that credible. I don't want to doubt her, but I kind of have to.
Because after researching and reporting the story for the last three years, this story line is very common in Cooper land. You find a lot of people who have memories. This one taken from a woman who's 48 and she had this memory when she was 8 years old.
So I just don't know if I can totally believe this whisper that she overheard or at least I need to know a lot more.
PHILLIPS: Interesting. OK, well, you've got exclusive access to the FBI's case files. You know so much about this mystery. Tell us about some of the most interesting things that you discovered.
GRAY: Well, I mean the most interesting riveting, I think, experience for me was actually reading them, just reading the documents and actually finding out what exactly happened.
Because there's the myth of D.B. Cooper and there's the true story of Dan Cooper, the name is hijacker actually used and to go through these documents and find out what witnesses actually reported in 1971 was an intimate and just lucky great experience.
PHILLIPS: So is there anything that stood out to you?
GRAY: Plenty.
PHILLIPS: Like, for example?
GRAY: The most -- I don't know, what comes to mind right now is just who this hijacker was, his personality, his means, all the things that he said to the stewardesses and his motive and behind every crime we really want to understand the motive.
And I'll give you one little snippet of dialogue that I was able to uncover. At one point, the stewardess says to the hijacker, do you have a grudge against Northwest Airlines? Is that why you want to hijack the plane?
He said, no, I don't have a grudge against your airlines, I just have a grudge. So this is a man who just had a grudge and the truth is. There are a lot of them out there.
PHILLIPS: Interesting. All right, final question, you know, the FBI has said for years, there's no way he could have survived jumping out of that airplane. Now we hear that he could have lived for decades. What do you think? What's your gut? And is it possible, I'm going to throw it out there, that he's not dead?
GRAY: Right. Well, it's absolutely possible to survive that jump and the FBI actually one of the things that I found in the files and one of the things that's in the book is that they actually interviewed parachute experts the morning after.
And the parachute experts told him, yes, it's possible to survive a jump like that even in that area, but just a last word about this recent suspect because I really want people to proceed with caution here.
I spoke with the FBI last night about this lead, and even though it's been called our most promising ever, it's really not, and an FBI agent told me that this particular suspect had not been totally vetted, they just passed along evidence to the lab.
I just want people to understand that, proceed with caution here because as the mania unfolds, actually expect more uncle L.D.s as the suspect is called to come forward.
PHILLIPS: All right, interesting. We'll track it and we'll probably be interviewing you again, my guess, and the mystery will live on, probably for decades more. Geoffrey Gray, the book is called "Sky Jack". It's a great read. Appreciate you joining us, thanks.
GRAY: Thanks for having me.
PHILLIPS: You bet. Well, some people are asking where Mitt Romney has been on the debt ceiling debate. Actually been referred to as the Mittness Romney protection program, he's staying out of the fray, or is he being a political genius? We'll find out.
Plus 66,000 people lost their jobs in July, while layoffs and does the debt ceiling deal mean more cuts to come? We'll tell you.
(COMMERCIAL BREAK)
PHILLIPS: Checking top stories now, Wall Street hoping to bounce back as investors digest two mixed job reports. Yesterday, the Dow plunged 266 for its eight straight loss. Dow Industrials down 51 points right now.
Former Egyptian President Hosni Mubarak wheeled into court on a gurney and put into an iron cage as this trial gets underway in Cairo. The ailing Mubarak is charged with corruption and ordering the killing of antigovernment protesters.
A bomb squad called into a house in Sidney, Australia, they're investigating a suspicious device reported by an 18-year-old girl. They won't comment on the reports that that device is attached to the girl.
All right, political buzz, your rapid fire look at the hottest political topics of the day, three questions, 30 seconds on the clock.
Playing today Democratic strategist, Maria Cardona, Robert Tram, the D.C. Bureau chief for Comcast Network and CNN contributor and talk radio host Dana Loesch.
All right, guys, first question. China downgrading U.S. debt, Moody says it's holding its ground on its AAA ratings so for now was this whole circus over the debt ceiling deal just a shell game, Maria?
MARIA CARDONA, DEMOCRATIC STRATEGIST: I certainly don't think it was a game because either default or downgrade are both very serious issues. But many times it did feel like a scary economic gamble that could have completely been avoided.
And I think what Americans are going to think about when they think about this whole circus is are those small group of lawmakers within the GOP Tea Party caucus who are intransigent and so recalcitrant, it was either their way or the highway, they either didn't believe in default, didn't believe in the consequences of default, and they were willing to bring us to the brink of another economic recession. And that, I think, is going to come back and haunt them.
PHILLIPS: Dana?
DANA LOESCH, CONSERVATIVE RADIO TALK SHOW HOST: I would like to remind Maria that that small group of freshmen lawmakers also represent quite large constituencies that really believe in what those lawmakers are standing for because that's why they were sent there.
But we already had three credit agencies downgrade us. But nobody talks about those because it doesn't fit the narrative. No one mentions them because they cite big spending. I think that Washington is surprised to see that Wall Street doesn't react whenever it snaps its fingers. But we were always told that if we pass this debt bill, if we compromise on the debt ceiling, we wouldn't see this from Wall Street. Everything would be kittens and sunshine. But it's past and we're not seeing it.
So, I think it was kind of a -
(BUZZER SOUNDS)
LOESCH: -- shell game and a lot of fearmongering definitely going on.
PHILLIPS: Bob?
ROBERT TRAYNHAM, D.C. BUREAU CHIEF, COMCAST NETWORK: Well, it certainly wasn't a political shell game. What it was was a serious policy debate between Republicans and Democrats who had some very serious differences and concerns, not only about the debt, but also obviously about revenue.
And what you saw was for the very first time in a very long time, and I think everyone would agree with this, is that we had a national conversation about reigning in our debt. We had a national conversation about what's right and what's wrong and what we can afford and what we can't afford. So, regardless of whether you're a Republican or a Democrat, a liberal or a conservative, you have to admit that all of us started to think a little bit more clearly -
(BUZZER SOUNDS)
TRAYNHAM: -- a little bit more thoughtfully about our national debt.
PHILLIPS: OK. GOP presidential frontrunner Mitt Romney all but stayed out of the debt debate until it was all over. Politico calling his low profile this summer the "Mittness Protection Program." You know, just staying out the fray. A stroke of political genius, or is this going to cost him? Maria?
CARDONA: I love that term by the way. I think it's brilliant.
I don't think this is actually going to cost him, Kyra. I think what's going to cost him even more than being absolutely absent from this whole negotiation and this whole deal is actually being present on both sides of major issues throughout his career. On issues like gay rights, gay marriage, abortion, the Recovery Act, the recession.
You name it, Mitt Romney has been on both sides of those issues. He's flip-flopped more than the International House of Pancakes, and that's what I think is going to come back to bite him.
PHILLIPS: Dana?
LOESCH: I like the "Mittness Protection Program."
I thought it was odd that he was the only one who was silent. And isn't he running for president? I kind of forgot because he was so quiet.
I think Mitt Romney can't blink or can't move or even comb his hair without checking a poll or a sample group or so on and so forth. That's not a real good indicator of leadership.
PHILLIPS: All right, bob?
TRAYNHAM: Very, very clever. I don't know whether or not this is going to help him or hurt him; time will tell. But you know, Mitt Romney has a very, very distinct record of going right down the middle, taking his finger, putting it up to the pulse and then going in the direction of the wind. So, we'll see exactly whether or not the Tea Party - in particular in Iowa, in South Carolina, in New Hampshire, in those battleground primary states, whether or not they support the Mitt Romney kind of middle-of-the-road philosophy or not. Time will tell.
PHILLIPS: OK, guys, your "Buzzer Beater." Twenty seconds each. Writing on CNN.com, retired Army general Russell Honore, who never holds back, says that he has a way to shape things up in Washington. He says send politicians to boot camp.
So, here's my question: who would you like to see get the boot camp treatment exactly? Dana?
LOESCH: Oh, any politician that -- we could be here all day because so many of them have that big, giant spare tire of excessive spending. And I think they could work that off. We would be here all morning, there's so many.
PHILLIPS: But there's not one in particular, Dana?
LOESCH: Oh, my goodness. Mitch McConnell, Lindsey Graham, Nancy Pelosi, Clyburn. Oh, yes, I could go on and on.
PHILLIPS: Just imagine them all together. Maria, what do you say? CARDONA: I agree that every politician, frankly everybody, can benefit from a little bit of a boot camp workout. But I will tell you, and I have said this time and again on your program, Kyra. I think the 66 members of the Tea Party Caucus could benefit from this because you learn a lot about shared sacrifice, about teamwork, about putting the needs of many before your own -- i.e., the American people, and they need to learn that.
(BUZZER SOUNDS)
PHILLIPS: All right, Bob, who would you want to see doing some hardcore P.T. out there?
TRAYNHAM: The good thing about boot camp is it's nonpartisan. Everyone comes in the same, and they all leave the same. So, every single member of Congress should go except for Gabby Giffords.
PHILLIPS: Aww! He -- I think everybody would probably agree on that, yes. What a remarkable woman and it was great to see her out on the floor.
All right, we ended on a very positive note. Dana - no arguing here! No debate! Dana, Maria, Bob, thanks, guys.
LOESCH: Thank you.
TRAYNHAM: Thank you.
PHILLIPS: Well, some bad news on the job front, 66,000 jobs. Those are the cuts that were announced last month. It's according to a top outplacement consulting firm. So, if you're keeping count, that's a 60 percent increase from the month before.
Let's talk more about this with Poppy Harlow. So, Poppy, let's talk about why all the layoffs, and where exactly are they?
POPPY HARLOW, CNNMONEY.COM: Yes. It's a good question. It's a big jump from just a month ago. It's a very unexpected jump, and it comes at a time of such volatility, uncertainty and the market has been down for eight straight days. This is not good news. The market is down 100 points right now, in part reacting to these jobs number.
Kyra, this is for two reasons. One, a lack of demand. People are not spending a lot of money right now, and companies feel the environment is so uncertain. They've got health care reform, they've got financial reform, they don't know what's ahead in taxes.
And I want to show you some of the companies. We've got them on here CNNmoney, job killing companies. Let's go through the three biggest ones. But before I do that, I want to play for you the reason why we're seeing all of these job cuts. This comes from John Challenger, who issued that report. Take a listen to what he says.
(BEGIN VIDEO CLIP)
JOHN CHALLENGER, CEO, CHALLNGER, GRAY & CHRISTMAS: One picture is, we're in this rocky recovery, in one of those entrenchments. But there's increasing concern that the economy may be heading towards recession. Major companies are now making layoffs rather than just holding on to their people. All of the government's stimulus, both fiscal and monetary now, is at risk. And maybe there's not going to be enough consumer and business spending to keep this economy afloat.
(END VIDEO CLIP)
HARLOW: So, a major risk, and I want to show you the big companies that are cutting majorly in terms of jobs, Kyra. Let's look first at Borders. As you know, they're liquidating, they're closing. Cutting more than 10,000 jobs. They're going to close their 399 remaining stores.
Let's move on to banking. Goldman Sachs, that Wall Stree powerhouse in July announcing 1,000 job cuts. They're going to save $1.2 billion as a result. Cisco, huge technology company, cutting 6,500 positions, letting go of 15 percent of their top management.
Kyra, what's troubling here is these are across industries, this is not just focussed on one industry. And these are industries that typically enjoy low levels of job cuts. And that's why this is so troubling and it shows us the job picture is not getting any better, Kyra.
PHILLIPS: More on Poppy's report there at CNNmoney.com. Poppy, thanks.
And while it can be tough to find a job, now is your chance to be seen and heard. You can give us your 30-second pitch right here on our air. Tell us why someone should hire you. Send us an e-mail, 30SecondPitch@CNN.com. You may get a chance to make that pitch right here on the CNN NEWSROOM, 10 a.m. Eastern.
Coming up, eye scanners to identify suspects. I'll show you how it works next.
And tracking Tropical Storm Emily. We'll tell you where it's headed.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories "Cross Country."
The drought in Texas painfully obvious in the town of Robert Lee. Brown, rain-parched lanes - or lawns, rather, are one thing. But now this town of 1,000 people may run out of water next year if it doesn't rain. Robert Lee has only seen one inch of rain since December.
A man with a backpack jumps the fence, the Secret Service jumps him. The security breach triggered a lockdown at the White House, and it all unfolded live during CNN's "JOHN KING USA" last night.
And he's back. The peacock that had enough of the Central Park Zoo, flew the coup and took perch on a Fifth Avenue window ledge. Well, he's returned to his enclosure as of four hours ago. Hope he enjoyed his hall pass.
Eye scanning. A futuristic tool used in science fiction thrillers like "Minority Report."
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TOM CRUISE, ACTOR (acting): Look at me. Positive for Howard Marks. I'm placing you under arrest.
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PHILLIPS: But it's not science fiction anymore. Police are actually using iris scanners now to identify people and instantly reveal their criminal history. Deb Feyerick shows us how it works.
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DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): At the Plymouth County Correctional facility, the current home of reputed crime boss "Whitey" Bulger, you'd be surprised at the things some incoming inmates will do.
(on camera): How many prisoners have tried to shield their identity or hide their identity into the system?
UNIDENTIFIED MALE: There's been quite a few.
FEYERICK (voice-over): Like the felon who gave a phony name, even lied about a prominent tattoo, says records supervisor Lieutenant Doug Rideout .
(on camera): He still denied who he was?
LT. DOUGH RIDEOUT, RECORDS SUPERVISOR, PLYMOUTH COUNTY CORRECTIONAL FACILITY: Yes! He still denied it, but we had him pretty much (INAUDIBLE)
FEYERICK (voice-over): The positive ID took just a few seconds because of this.
RIDEOUT: Look into the camera.
FEYERICK: An iris scan. Like a fingerprint, but with 235 specific identifying marks in each eye. Apparently quicker and more accurate.
RIDEOUT: It's a national database. If his eyes match up to anybody, it will pop up.
FEYERICK: Sean Mullen, showing us how it works, is president of B-12 Technologies, the biometric intelligence company behind the iris scan.
SEAN MULLEN, PRESIDENT, B12 TECHNOLOGIES: Hold it from about four or five inches from your eye.
FEYERICK: No danger to the eye?
MULLEN: No danger to the eye. It's just simply a digital photograph.
FEYERICK: What makes the system unique is this handheld device, which can be used anywhere. Attached to a smart phone, it can instantly run ID checks only after an officer determines probable cause.
MULLEN: The biggest advantage, they can quickly identify who they have in front of them and what potential danger or risk they may pose.
FEYERICK: Mullen says the eye scan is uploaded and checked in the database against half a million people previously arrested. My results?
MULLEN: And what does it say?
FEYERICK (on camera): No matches.
MULLEN: No match found. That's the idea.
FEYERICK: He says my iris scan is then erased. My record clean.
According to Mullen, more than 300 sheriff's departments and correctional facilities around the country are using the new systems. Anyone charged with a crime there gets their eyes scanned.
Civil rights advocates worry the iris scan could be used without probable cause as a surveillance tool. Or in places like Arizona as a way to enforce disputed immigration policies. Mullins says that's unlikely, given how close you have to be to snap a photo.
Plymouth County sheriff Joseph McDonald sees it as an extra safeguard to ensure prisoners being released aren't wanted elsewhere. And to verify the person getting out?
JOSEPH MCDONALD, PLYMOUTH COUNTY SHERIFF: That photo was take, on the way in and then matched up on the way out.
FEYERICK: -- has served their time.
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PHILLIPS: Deb Feyerick joining us live out of New York. So, Deb, could this be used to identify people even when there's no reason to do so?
FEYERICK: That is really the big concern. But think about it, the iris scan really has to be held about five inches from your face. It's certainly not at the stage that it can be mounted on a light post to identify people crossing the street, for example.
Think about fingerprinting, there does have to be reasonable suspicion. And that's the plan for iris scans as well. Really the immediate tricky area, it could be immigration because if someone is pulled over who's not documented, they could wind up in the database. And that clearly will be legally challenged.
But it's fascinating. We were so impressed by the degree of accuracy that this can call up a prisoner's record. You have to be in the system for it to match. If you're not in the system, like I'm not in the system, then there's no match and the eye scan goes away.
PHILLIPS: Interesting. Deb, thanks.
Coming up, the stock market could face a pretty bleak milestone if it doesn't manage to end higher today. We're going to check in with our Alison Kosik in just a few minutes.
And later on, an environmental group checks children's car seats for chemicals. We're going to tell you which infant seats are the most toxic.
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PHILLIPS: Stories making news today. In about 45 minutes, senators Harry Reid and Jay Rockefeller address the partial shutdown of the FAA.
At 2:00 p.m. Eastern, President Obama holds a cabinet meeting before he departs for Chicago where he headlines a party fundraiser on the eve of his 50th birthday.
Alison Kosik standing by at the New York Stock Exchange now, where the market is trying to rebound from the recent string of losses. And taking a look at numbers, wow. It's gone really into negative big time now, down 133 points. It wasn't that low when we talked about that a half an hour ago.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Nope. Yes, we are watching the markets slide again. The Dow Industrials looks like it's getting real close to having a ninth straight loss. We haven't seen that happen since 1978.
Yesterday the S&P 500, Kyra, gave up all its gains for the year, and many of our 401(k) close or near the index. So, I'll tell you what, it's really not a good time to look at your investments.
Also, the NASDAQ is also in the negative for the year. It's erased all its gains as well. Listen, traders I talked to on the floor are getting really concerned. They're hearing more talk that we're headed for a double dip recession. One economist, in fact, tells me the odds of a recession has begun in the third quarter or will begin soon have risen dramatically. Kyra?
PHILLIPS: Is it fair to say it's only -- about 10:49 Eastern time and watching these numbers in negative territory -- but things could get better as we watch the day progress, right? This doesn't necessarily mean it's going to be a horrific day?
KOSIK: It's really hard to tell. You know, it's hard to be a prognosticator, but volume today, it's still pretty strong considering when we see volume pretty strong, sometimes the gains -- or in this case the losses -- can really stick.
You know, everyone wants to see, you know, kind of a reprieve from this negative news lately. But I'll tell you what, the weak personal spending numbers from yesterday, they're of big concern. We're seeing people spending less, saving more. And in theory, it's good for people to save money, but it's even more important for them to get out there, have confidence in their personal financial situation and go out and pump money into the economy. But we're not seeing that at this point.
And then you lump all the other negative news we have gotten. The negative Moody's outlook, the bad manufacturing numbers from Monday, the weak GDP figures, all of this not painting a pretty picture. So we're really not seeing any relief on that front. Then Wall Street also looking for the jobs report, not expecting to get much relief from that either. Kyra?
PHILLIPS: OK. Alison, we'll keep talking.
And watches and warnings are now in effect for Tropical Storm Emily. We're going to tell you where it's likely to make landfall.
Also, an environmental group tests for chemicals in children's car seats. We'll show you the most toxic infant seats.
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PHILLIPS: OK, we're watching Tropical Storm Emily. Meterologist Bonnie Schneider tracking it, too.
BONNIE SCHNIEDER, AMS METEOROLOGIST: Good morning, Kyra. We just got the latest advisory in; not too much of a change. But keep in mind that we're looking at a tropical system that will be impacting areas from the Dominican Republic all the way up the East Coast, possibly straight into early next week as the storm track takes the storm further off to the west and then curves it away from the main land. But keep in mind, this track is likely to change.
Right now, the storm is bearing down, bringing tropical force conditions as we expect later today and tonight, to the Dominican Republic and Haiti. And the reason this is so dangerous, of course, because in the higher terrain, if we get ten inches of rain possible that will really cause the problem with mudslides.
So, the storm is continuing to work its way toward Puerto Rico and the Bahamas, and with that said, watches and warnings are posted for the next 36 to 48 hours. We'll watching for tropical storm force winds all the way up possible to the Bahamas. Kyra?
PHILLIPS: OK, thanks so much, Bonnie.
All right. I'm just looking over this list that parents of young children are going to want to check out. It's the latest research on toxic chemicals in car seats. The Ecology Center has released its findings on the Web site HealthyStuff.org, and researchers actually tested infant, convertible and booster models for a number of chemicals. So, here you go.
The Graco Snug Ride 35 in Edgemont Red and black, and the Graco Snug Ride 30 in Asprey were found to be the most toxic in infant models. And the least toxic in the infant category, the Chicco KeyFit 30 in Limonata, the Graco Snugride 35 in Laguna Bay and the Combi Shuttle 33 in Cranberry. Now, overall, the study found that many companies are starting to make car seats with healthier products.
All right. Coming up at the top of the hour, an in-depth look at what the debt deal could mean for the stock market, your personal finances, unemployment, small businesses and hospitals.
Plus this --
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BRIAN TODD, CNN CORRESPONDENT: They blasted through cage like metal gates on the stairways. As a small team of SEALs reached the third floor, one of them turned to his right.
UNIDENTIFIED MALE: He sees this tall individual poking his head out of the door with a fist-length beard.
TODD: The SEAL says Nicholas Schmittle instantly sensed that was Bin Laden.
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PHILLIPS: New details in the Osama bin Laden raid including how one Navy SEAL had to act in a split second when he came into the room where bin Laden was hiding.
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PHILLIPS: All right, we hear "Mittness Protection Program" and kind of chuckle. But Mitt Romney has taken some serious heat for being late in the debt deal game. Brianna Keiler is at the White House with more on this. Brianna?
BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Hi there, Kyra. Yes, this on the ticker. Mitt Romney on a milk carton, and our political correspondent Jim Acosta explaining why.
Mitt Romney, of course, Republican presidential candidate. He's been criticized as late to the game in weighing in on this debt ceiling crisis. He put on a statement nine hours before the House passed this compromise deal that was just signed into law yesterday saying that he didn't support it. And so a blogger on the conservative Web site, Daily Caller put a picture of a milk carton with Romney's photo on it with a caption saying "Missing Leadership."
So, the campaign, Romney's campaign, says he supports a more conservative approach. The cut, cap, balance plan that passed the House with only Republican support but failed in the Senate. But critics are saying Romney hasn't really taken a clear position on increasing the debt ceiling.
Also on the ticker, a story coming kind of from the White House. The president is going to be taking his jobs message on the road with a bus tour across the Midwest. This will be taking place, the White House says, the week of August 15. So, the week after next week, the president, the White House, they really feel like they haven't been able to concentrate on their jobs message, which of course is a huge, huge important issue going into the 2012 election. So, he'll be taking this message on the road for that, trying to move beyond the debt ceiling business the president has been dealing with.
And Kyra, I promise this is going to be a great story on the ticker because it is by our newest member of the White House unit, Adam Aigner-Treworgy. This is his first ticker item as a member of our White House team.
PHILLIPS: Adam, welcome. We have heard great things. That's indeed.
Not shout-out, Brianna.
All right. We'll be talking more tomorrow.
It is the top of the hour. That does it for us. We'll be back here tomorrow morning.
Fredricka Whitfield, in for Suzanne today.
Hello.
FREDRICKA WHITFIELD, CNN ANCHOR: All right. Hello to you. Have a great day.
PHILLIPS: Thank you. You, too.
WHITFIELD: All right. Thanks so much, Kyra.
