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American Morning: Wake Up Call
Case Against Strauss-Kahn Shaky; Minnesota Government Shuts Down; Geithner Considers Leaving; Minnesota Government Out of Money; New Secretary Of Defense
Aired July 01, 2011 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALI VELSHI, CNN ANCHOR: Good morning. It is Friday, July 1st. This is your A.M. WAKE-UP CALL.
I'm Ali Velshi, joining you live this morning from New York.
We begin this morning with dramatic developments in the sexual assault case against former IMF chief Dominique Strauss-Kahn. A source close to the case tells CNN that defense attorneys and prosecutors will ask for a sharp reduction in his bail today together. Why? Because prosecutors are seriously questioning the credibility of the hotel maid who says Strauss-Kahn attacked her in his hotel room. Issues include outright lies to the investigators with the district attorney's office.
(BEGIN VIDEO CLIP)
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST (via telephone): This is just an extraordinary, extraordinary development. Considering that this case was brought with such great fanfare by the Manhattan district attorney and they very loudly trumpeted the credibility of the accuser here. And the credibility appears -- and I hasten to say appears -- to have collapsed.
What makes it even more extraordinary is that the evidence apparently shows DNA evidence of a sexual encounter between Dominique Strauss- Kahn and the woman who is the maid -- yet even with DNA evidence, the prosecution is considering dropping the case. That shows how bad her credibility may be, that even with DNA evidence, they may not be able to bring this case. It's a shocking, shocking development.
(END VIDEO CLIP)
VELSHI: DSK's bail reduction hearing is set for 11:30 this morning, Eastern Time. CNN will follow the story very closely.
For the second time in six years, Minnesota state government is out of money and closed for business. The state's Democratic governor and Republican-controlled legislature could not agree on a budget or on how to close a $5 billion deficit.
Now, shutdown does not affect prison staffing, state police, patrols or staffing at nursing and veterans homes. But it does affect some roads. It's a big hassle for campers. They've got to leave state parks on this busy Fourth of July weekend. Also at midnight, the NBA's collective bargaining agreement ran out, making it the second major sports organization to enter a lockout. The league says it lost $300 million last season and is looking at a similar loss next season. So, owners want to reduce players' salaries.
Now, the sides are so far apart on this that industry insiders say the entire 2011-2012 season is in jeopardy. I'll have more with Fav Latore (ph) from "Sports Illustrated" later on in the show.
Prosecutors in the Casey Anthony trial can call rebuttal witnesses after the defense rested without put her on the stand yesterday. CNN has obtained home video of Anthony as a young girl in 1991. Here she is as a friend's birthday party.
(BEGIN VIDEO CLIP)
CASEY ANTHONY: Happy birthday. My name is Casey.
UNIDENTIFIED FEMALE: What do you think, Casey, I didn't get you.
ANTHONY: Happy birthday. My name's Casey.
(END VIDEO CLIP)
VELSHI: The woman who claims she had an affair with Casey's father was on the stand yesterday. Here's what she says, George Anthony, the father told her about Caylee Anthony's death.
(BEGIN VIDEO CLIP)
KRYSTAL HOLLOWAY, ALLEGED WITNESS: He had said it was an accident that snowballed out of control. But I was in shock. And by the time I looked up, his eyes were filled with tears. And I didn't elaborate.
(END VIDEO CLIP)
VELSHI: The trial starts up again this morning, around 8:30 A.M. Eastern Time.
The U.S. Senate is taking Independence Day off, but it will not be out for an extended Fourth of July recess. Senate Majority Leader Harry Reid announced yesterday they're skipping the planned week-long break to revive talks on reducing the deficit and raising the debt ceiling.
Treasury Secretary Timothy Geithner is considering leaving his post once a deal is hammered out on that debt ceiling. That's according to a source familiar with the discussion. But when asked about his future plans yesterday, this is what Geithner himself had to say.
(BEGIN VIDEO CLIP)
TIMOTHY GEITHNER, TREASURY SECRETARY: I live for this work. It's the only thing I've ever done, I believe in it. We have a lot of chance as a country and I'm going to be doing it for the foreseeable future.
(END VIDEO CLIP)
VELSHI: We'll keep an eye on that as well. Let's cross over to Hong Kong.
Anna Coren is watching world markets for us right now.
Good morning, Anna.
ANNA COREN, CNN CORRESPONDENT: A very good morning to you, Ali.
Well, here in the Asia Pacific or the Tropics as I know you like to call it, markets closed mostly higher. The Nikkei rose to an almost two-month high, following optimism that Greece has managed to avoid a default and also on news that U.S. manufacturing expanded at a faster pace in June. Well, it settled at about 0.5 percent.
European markets have been open for a few hours and they're relatively flat. We'll see how they do over the day.
America? You're looking good so far. The S&P 500 closed strong last night, marking the fourth straight day of strong performance. We'll see if Europe's performance will affect things across the pond for you guys there.
VELSHI: You in the Tropics like your bridges. In fact, in China, I read in "TIME" magazine that 11 of the world's 15 longest bridges are there. And there are four bridges opening today, including the world's longest sea bridge. This thing was amazing. It's the length of a marathon.
COREN: It's -- it is very long.
But believe it or not, Ali, we're hearing news out of Louisiana that they're refusing to give up the title of having the world's longest bridge. They've had that title for about half a century. They claim that this bridge in China, that they've opened, is only 16 miles long across the water, because it has a big long curve in it. It says that its bridge crosses 24 miles of water.
So, there you go. Bit of a dispute going on.
VELSHI: I tell you, those are long bridges, you're a runner. This looks like, doesn't look like a pedestrian bridge. But I guess they've got little things on the sides.
You run in Hong Kong? I mean, in summer in Hong Kong or the Tropics --
COREN: I do.
VELSHI: -- it gets hot and there's a lot of thunder.
COREN: Ali, I said it first, OK? Let's just get that straight.
(LAUGHTER)
VELSHI: Very good. Anna Coren, we'll check in with you later on day.
(CROSSTALK)
VELSHI: Anna Coren in Hong Kong.
Speaking about weather, any tropical weather or flight delays this morning? Rob Marciano is in Atlanta for us.
ROB MARCIANO, AMS METEOROLOGIST: Hey, you know, we had our first tropical storm of the season that made landfall yesterday, Ali, across Mexico. That is dissipating and bringing all the beneficial of rain to Mexico and the mountainous areas, although there's a little bit of flash flooding in some of the hillier terrain.
A little bit of moisture this morning across parts of the western Great Lakes, but this isn't a big deal. It's kind of a precursor of the heat that's going to be building. If you are traveling today, look at it for airport delays in Tampa, Orlando, Miami, in the afternoon for thunderstorms. Minneapolis and Omaha, probably see some afternoon thunderstorms. And Chicago, low clouds and some showers there that are rumbling through.
As mentioned, the heat is going building across the western Great Lakes and the Central Plains, where we'll see heat indices up and over 100 degrees right through tomorrow. So, dangerous heat there with humidity as well be pumped up from the Gulf of Mexico, looking at decent weather, though, across parts of the Northeast. Another nice day in New York City, with a high temperature of 83 degrees. That's warm, comfortable, but not quite
VELSHI: It's fine. That's the high end of what I can live with.
Rob, watch this video for me. Just in time for the Fourth of July fireworks -- in slow motion from "Popular Science." What you're watching here -- high-definition footage. 2,000 frames a second. By the way if you're watching us, it's 30 frames a second, so this is about 67 times slower than normal video.
Take a look at that. Fireworks in slow motion.
MARCIANO: Come on. That is awesome.
Blowing stuff up is fun enough, but to see it in super-duper slow-mo, that's money.
VELSHI: It's pretty cool. I like it. All right, Rob. I'll check in with you a little later on. Rob Marciano in the weather center.
Hey, time for our quote of the day. Here are a few memorable words from a newsmaker. Quote, "I've been pretty blunt with what I think about this president. I think he's in over his head. I think he's in denial. And yesterday, he acted like a 10-year-old," end quote.
Who said it? Mull it over and I'll have the answer for you after the break.
It's eight minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Happy Friday. It is 12 minutes after -- 11 minutes after the hour.
Before the break I read you this quote. "I've been pretty blunt in what I think of this president. I think he's in over his head. I think he's in denial. And yesterday, he acted like a 10-year-old."
Who said that? Well, it was the Republican Congressman Joe Walsh of Illinois, making it clear to Eliot Spitzer that he's no fan of the way the president is handling the nation's business. Here it is in his words.
(BEGIN VIDEO CLIP)
REP. JOE WALSH (R), ILLINOIS: I've been blunt in what I think of this president. I think he's in over his head. I think he's in denial. And yesterday, he acted like a 10-year-old. He hasn't been serious about any of the serious fiscal issues our country is facing. I don't take him very seriously.
(END VIDEO CLIP)
VELSHI: This is starting to sound like a schoolyard spat. Let's not forget, the president slung a similar insult earlier this week.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Malia and Sasha generally finish their homework a day ahead of time. They don't wait until the night before. They're not pulling all-nighters. They're 13 and 10.
(END VIDEO CLIP)
VELSHI: Remember Republican presidential hopeful, Michele Bachmann's, mix up, confusing a Hollywood icon with a serial killer? Well, the late-night comedians do and they won't let it rest. Here's your punch line.
(BEGIN VIDEO CLIPS)
DAVID LETTERMAN, "LATE SHOW WITH DAVID LETTERMAN": Did you see - look at this. Watch this.
NARRATOR: Earlier this week, Michele Bachmann confused John Wayne with serial killer John Wayne Gacy. She sincerely regrets the error and vows to carry on her campaign and the tradition of our great Founding Fathers Thomas Jefferson, James Madison and Osama bin Franklin.
JON STEWART, THE DAILY SHOW: How do you know she got her John Waynes confused?
(AUDIO BREAK) serial killer straight up. I believe the Waterloo Chamber of Commerce sent her a thank you card.
(END VIDEO CLIPS)
VELSHI: All right. Let's go straight to Tim Farley. He's the host of "Morning Briefing" on Sirius XM POTUS live from Washington.
Hey, the story tonight, overnight, that's getting everybody's attention, Tim, is Minnesota government shutdown. Why did it happen? What does it mean?
TIM FARLEY, SIRIUS XM POTUS: Well, you -- I saw you talk about it at the beginning of the show. And this is a key part of this -- it's not just about people in Minnesota. Around the country, people are struggling, states are struggling with their budgets. And right now, we have a Democratic governor and a legislature run by the Republicans that don't seem to be getting along.
And there's a sense of frustration around the country, not just in Minnesota, but in the federal government and even on the state level when you have parties mixing it up. In this case, in Minnesota, they're shutting down the state, including state parks, right in front of one of the busiest weekends of the year, July 4th weekend.
Marge Gundersen (ph) is going to be writing screening tickets up in Brainerd, but you're not going to be seeing the parks open this weekend.
VELSHI: All right. And, by the way, we all sort of know what you're doing for the weekend. If you are one of these presidential candidates in this increasingly crowded field, what are you planning on doing this weekend? Do you take it off or do you work?
FARLEY: Funny you should mention that, Ali, because you just had something there about Michele Bachmann. Herman Cain is going to be in Winterset, Ohio, the actual boyhood home of John Wayne.
But if you look around, Michele Bachmann is in Iowa also.
This weekend, a lot of candidates out. Ron Paul has a schedule. If you go to his Web site, that is so full, he's all over New Hampshire. And Mitt Romney is going to be spending some time there, also -- as is Jon Huntsman.
And this the day after they finish their fundraising. You're going to see some numbers come out. Jon Huntsman's campaign said they raised $4 million. You're going to see dribs and drabs of that over the next few days. July 15th, the deadline. We'll see how much money people have been raising, and that might give you a sense of how well their campaigns are going along.
VELSHI: And I guess if you're trying to raise money and trying to get votes, you can't take the weekend off.
Tim, good to see you. Have a great show this morning. Tim Farley, "Morning Briefing" on Sirius XM POTUS, live from Washington. Speaking of the 2012 White House run, former President Bill Clinton has got a few thoughts on how it's going to go down. He sat down for a one-on-one with our Wolf Blitzer.
(BEGIN VIDEO CLIP)
WOLF BLITZER, CNN ANCHOR: How worried are you right now about president Obama getting re-elected?
WILLIAM J. CLINTON, FORMER U.S. PRESIDENT: Well, on today's facts, I'll be surprised if he's not re-elected. I think people understand this recession was more severe than the one I had.
BLITZER: Who is the strongest Republican candidate out there?
CLINTON: I can't tell you.
BLITZER: Who do you fear the most?
CLINTON: Oh, I'm not afraid. I'll be surprised if the president doesn't win. I think he will. But, you know, as you might imagine, as a Democrat who's -- I've always thought myself as pro-growth, pro- business, pro-labor Democrat. I like, you know, I like Governor Huntsman, I like Governor Romney. I think Governor Romney is doing a better job this time than he did last time.
(END VIDEO CLIP)
VELSHI: All right. The sex assault case against the man who was once the world's most powerful banker could be falling apart. There are big new questions about the credibility of the maid accusing him. We'll look at ha could happen in a New York courtroom this very morning and at the bottom of the hour, we'll go live to Paris, Dominique Strauss-Kahn's homeland. Remember, he was expected to be the next president of that country.
Thousands of inmates con set free in a matter of months. I'll tell you about how new changes in sentencing guidelines that some critics are calling unfair in the first place.
And today, we celebrate the second half of the year day. That's right, half of 2011 is already behind us. We got six more months to go. Boy, we're going to find some national day every single day.
By the way, it's a National Day of Canada. It's Canada's birthday today. Happy Canada Day, everybody.
We're taking a break. Sixteen minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Nineteen minutes after the hour. I'm Ali Velshi.
Here are three things to put on your radar today.
Former IMF chief Dominique Strauss-Kahn goes before a jury to try to get his bail reduced. Prosecutors say they've discovered serious credibility issues with the woman who accused him of sexual assault. That hearing is at 11:30 a.m. Eastern this morning. CNN will have coverage of it.
Plus, today, Prince Albert II of Monaco will marry his fiancee, Charlene Wittstock. The civil ceremony is today, the religious one is tomorrow. Remember, she tried to get out of that wedding.
And this afternoon, President Obama will head to Camp David for the July 4th weekend.
Thousands of federal inmates serving time for crack cocaine offenses could get out of prison a lot sooner, that's because a law passed last year to bring crack cocaine sentences more in line with that of powdered cocaine would be retroactively applied. The U.S. Sentencing Commission voted unanimously for the change yesterday. It won't take effect until November.
Critics argued that the old sentencing guidelines hurt African- Americans the most. Either way you slice it, crack is still whack.
And Massachusetts, lifeguards and managers of a public pool are off the job as investigators try to determine how a woman died. The 36- year-old woman's body went undetected for several days as others continued to swim in the pool. Apparently, it was hard to see the body at the bottom of the 12-foot pool described as cloudy by a health inspector.
As to the risks of those people who were swimming in that pool?
(BEGIN VIDEO CLIP)
DR. LAUREN SMTH, MASS. DEPARTMENT OF PUBLIC HEALTH: Given the fact that the victim was in the pool, and the chlorine levels were within normal levels, there really wouldn't be any additional health risk.
(END VIDEO CLIP)
VELSHI: In New Mexico, firefighters describe a massive wildfire burning in forest around the Los Alamos nuclear weapons lab as really aggressive in their terms. Winds gusting up to 40 miles an hour have made it tough to fight. The Los Alamos lab and an adjacent town have been evacuated since Monday. Lab and fire officials say no release of radiation or other hazardous materials has been detected.
A six-foot long predator is on the loose in Myrtle Beach, South Carolina., and the neighborhood there. It's an albino python. It should be easy to find. It's been spotted several times, in fact, in the last week. Residents are concerned about the safety of their children and small pets.
The snake is not native to the area. Reptile experts say it's likely someone released into the wild. Wow.
All right. Let's go around the world. Zain Verjee live in London with us right now. Zain, we have, we have news from Moammar Gadhafi's daughter. What's this story about?
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Aisha Gadhafi, Ali, 35 years old, has spoken out to France 2 TV. Here's what she had to say. The headline here really is she's saying that the government, the Gadhafis are reaching out and talking to the rebels.
She says this, "There are currently direct and indirect negotiations. We are working to stop bloodshed of Libyans. And for this, we are ready to make an alliance with the devil, with the armed rebels."
She was also asked about whether it was time for dad to leave. And she replied, "This is his country, his land, his people. Where would he go?" she says. "There is one thing you don't understand and one thing you will never understand, is that my father is a symbol, a guide."
Ali, she said she sees him once in a while and he's the one that cheers everyone up and tells them, just be patient -- Ali.
VELSHI: Wow.
All right. Zain, Hugo Chavez, we were talking about this, he's been in Cuba for a while. A lot of speculation as to what he was doing there. He's finally come out and said why he was there.
VERJEE: Yes, he says he has cancer. That he was in Cuba for an operation. That was done.
Now, we don't know how long he's going to be there. He looks like he's going to be there quite a while.
And the question is: who's actually going to be running the country while Hugo Chavez is recovering in Venezuela? So, the question for many people in the concern is, you know, Venezuela is a big oil producer. Who's going to be running the show? There are reports that his brother, Adan, is running it.
But the political opposition is happy about this. They want to take advantage while he's out of the country. And they say, you can't run the country by being away from it, because that's just unconstitutional. Elections are coming up. They want to capitalize on it.
VELSHI: And we saw some pictures of him there. He does look to be robust. He's otherwise a robust-looking guy. So, at least they've answered the questions about his health.
Zain, why am I working today?
(LAUGHTER)
VERJEE: You shouldn't be working, it's Canada Day. You're Canadian. You should, you should have taken it off.
VELSHI: I should have. Coming up there, hanging out with the royals.
VERJEE: Beaver tails.
VELSHI: That's right. Beaver tails.
By the way, if you don't know what a beaver tail is. If you don know what it is, people think that's pretty gross. It's not really a beaver's tail. It's a donut. It's basically a fried piece of dough, sweetened.
But, yes, I would have been loved to have been in Ottawa.
You spent some time in Canada as well, you went to school there.
VERJEE: I did. I was in Montreal, where I ate poutine most of the time.
But, you know, William and Kate there, you know people were screaming. The Canadians just love them. You know, they have a much more casual approach. They're very chatty, very touchy-feely. Their gestures are not just this. And formal.
And today, by the way, there's an undertone of sadness I think for Prince William. If Diana was alive, she would have turned 50 today.
VELSHI: Well, we will watch them. They've got a few more, they've got several more days. They've got a week more in Canada.
Zain, good to see you, as always. We will check in with you a little later in the show.
Zain Verjee in London.
Hey, at midnight, the NBA's collective bargaining agreement ran out, making it the second major sports organization to enter a lockout. The league says it lost $300 million last season. It's looking at a similar loss next season. So, owners want to reduce players' salaries.
The sides are so far apart that industry insiders say the entire 2011- 2012 season is in jeopardy.
So, all you basketball fans and all you football fans out there, you better become baseball fans. My Yankees tickets just got a little more valuable.
The U.S. Senate is taking Independence Day off. But it's not going to be fought for an extended Fourth of July recess. Senate majority leader Harry Reid announced yesterday they're skipping the planned week-long to revive talks on reducing the deficit and raising the debt ceiling.
And in today's businessman's special, find out what Walmart has to do with cheap gas.
Twenty-five minutes after the hour. I'll be right back. (COMMERCIAL BREAK)
VELSHI: Twenty-nine minutes after the hour. Good morning. It's Friday, July 1st. This is your A.M. WAKE-UP CALL.
I'm Ali Velshi, joining you live this morning from New York.
This morning, we've got all the news, weather, politics, sports -- everything you need to know to get your day started.
There are dramatic developments in the sexual assault case against former IMF chief, Dominique Strauss-Kahn. It may be close to collapsing. A defense source tells CNN there serious issues with the credibility of the hotel maid who claims that he attacked her in his Manhattan hotel suite.
"The New York Times" cites two law enforcement sources as saying that the woman has repeatedly lied, and that she's got possible links to people involved in criminal activities. "The Times" also reports a phone conversation was recorded in which she talked about the possible benefits of pursuing charges against Strauss-Kahn.
(BEGIN VIDEO CLIP)
TOOBIN: The evidence apparently shows DNA evidence of a sexual encounter between Dominique Strauss-Kahn and the woman who is the maid -- yet even with DNA evidence, the prosecution is considering dropping the case. That shows how bad her credibility may be, that even with DNA evidence, they may not be able to bring this case. It's a shocking, shocking development.
VELSHI: CNN senior international correspondent, Jim Bitterman, is in Paris. Jim, prosecutors and defense attorneys both jointly, according to the reports, are going to be asking for a sharp reduction in Strauss-Kahn's bail today, maybe even his very strict bail conditions. What's the reaction in France? This was a man, we don't want to forget, who many thought might be the next president of France.
JIM BITTERMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Absolutely true, Ali. In fact, this morning, they're using the words that they've been used. They've used once or twice before, and that's bombshell and thunderclap and all that sort of thing, because frankly, there's no other way to describe it. This is just another sudden reversal in the fate of Dominique Strauss-Kahn, but also in the fate of French politics, because, basically, he was the leading candidate, he hadn't been declared, but he was the leading candidate on the socialist party side.
And now, of course, there's a question about whether or not he could come back. And we went out on the streets today to talk to people, ask them whether or not they thought he was politically finished or if he still had a future and here's the kind of thing we heard.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I think he can't come back. The men in the presidential competition, I don't think so. I don't think so. I think it's not white and black.
UNIDENTIFIED MALE: I think he's out of the presidency, because anyway, the story will have an input on his career and on his popularity. So, I don't think he's able to make it.
UNIDENTIFIED FEMALE: I think for him, political party is over.
UNIDENTIFIED FEMALE (through translator): There will always be a doubt. So, even if they say yes, yes, he is innocent, there'll always be people who will think the contrary.
(END VIDEO CLIP)
BITTERMAN: And despite that skepticism, the politicians here are thinking he could still come back, and in fact, they're saying that he has until the 13th of July to file for the presidency on the socialist party ticket. So, he could very well do that if he gets clear to those charges and if he can travel -- Ali.
VELSHI: All right. We're a few hours away from seeing what this is all about. We don't know whether it means a reduction, as you say, in the strict conditions and in his high bail or whether it means that they think that the case is collapsing. How is this transpired? How has this moved in France? We heard the people you talked to, but has it shifted the political winds entirely? Has the opposing political party gained from this?
BITTERMAN: Well, absolutely. In fact, in the weeks since Dominique Strauss-kahn was first brought in the court and since we saw those pictures of him doing the perp walk and all the rest of it, basically, he's been written out of French politics. And other leading socialists have come to the fore. There's a rather major competition going on between (INAUDIBLE) and Martine Aubrey, the two leading socialist party candidates.
And some of the Strauss-Kahn supporters have thrown their weight behind those two candidates. Now, of course, it's all changed. And this morning, there's some talk among the leading socialists, that, in fact, they should even suspend this primary with the idea to give Strauss-Kahn enough time to reestablish himself on the political scene.
So, he's certainly changed the spectrum here, and it changes things for everybody, including President Sarkozy, because he was looking at a much easier time of it with the sort of lesser candidates on the left, but now, Strauss-Kahn has come back. He could be a formidable opponent -- Ali.
VELSHI: Jim Bitterman is covering the story for us through the course of the day.
Treasure Secretary Tim Geithner making headlines this morning. The U.S. treasury secretary is considering leaving his job after a deal is reached to raise the debt ceiling. That's what a source familiar with the discussion tells our Jessica Yellin. President Obama nominated Geithner as treasury secretary in 2009. Now, here's what Geithner told former president, Bill Clinton, at a Clinton Global Initiative event when he was asked about his future.
(BEGIN VIDEO CLIP)
TIMOTHY GEITHNER, U.S. TREASURY SECRETARY: I live for this work. It's the only thing I've ever done. I believe in it. We have a lot of challenged in our country. I'm going to be doing it for the foreseeable future.
(END VIDEO CLIP)
VELSHI: Now, for the second time in six years, Minnesota state government is out of money and close for business. The state's democratic governor and Republican-controlled legislature could not agree on a budget on how to close a $5 billion deficit. The shutdown doesn't affect prisons staffing, state police patrol, or staffing at nursing and veteran homes does involve a lot of other things, and it's big hassle for campers who've got leave the state parks on this busy Fourth of July weekend.
And don't miss my show, "Your Money" tomorrow 1:00 p.m. eastern and Sunday at three. We'll be discussing the debt ceiling and how you invest in this kind of climate.
The Barenaked Ladies, a good Canadian band, because it's Canada Day today, July 1st.
Hey, it's time now for the business band special. Wal-Mart offering ten cents off gas for the rest of the summer. There is a catch, a couple of catches. You have to buy the fuel using a Wal-Mart gift card or credit card. So, basically, you've got to go into the big box store to fill up our card and go to the pump and get your gas.
Catch number two, you can only get the discount in one of 18 states. You may read through them. Well, you can get them in any of 18 states, Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Missouri, New Mexico, North Carolina, Ohio, South Carolina, Tennessee, Texas, and Virginia. This goes on through September.
OK. Now, it's time to get smart. College degrees are stocks and bonds. College degrees or stocks and bonds. Which do you think is the best long-term investment? Think on it. I've got an answer for you after the break. Thirty-five minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Thirty-nine minutes after the hour. Before the break, I asked you, which do you think is the best long-term investment, college degrees or stocks and bonds? If your answer was Wall Street, you would be wrong.
According to a new study by the Brookings Institution, a college degree will get you far better returns on the same amount of money compared to stocks and bonds, housing and even gold. To read more on the study, head to the all-new redesigned CNNMoney.com. Time for the "Political Ticker." Political producer, Shannon Travis, my good friend, on the phone from Washington. It's all about Jon Huntsman today. Good morning, Shannon.
VOICE OF SHANNON TRAVIS, CNN POLITICAL PRODUCER: Hey there, Ali. Good morning. Yes, we're watching Jon Huntsman, because -- we're watching this presidential race, and you know, Ali, that money equals attention in this presidential race. We're watching it because the second fundraising quarter just ended yesterday, and we're looking to the presidential candidates, you know, raised how much money.
Jon Huntsman, he raised $4.1 million in the second fundraising quarter, but almost $2 million of that money was put in by himself. Now, this is a bit of a contradiction, because Jon Huntsman told reporters in early May that he would not put in his own money. We, of course, know that he, he has a lot of money because of his father's corporation, a chemical corporation.
So, it's a little bit of a contradiction that Jon Huntsman put in almost $2 million of his own money into this campaign. But hey, again, he entered the race a little bit later than the other candidates did -- Ali.
VELSHI: He's got some catch-up to play. Shannon Travis, thank you very much for that. Shannon Travis, our political producer.
Go to CNN.com/politics for your latest on politics. Forty minutes after the hour.
There are three things that you should have on your radar today. The Georgia immigration law targeting illegal immigrants takes effect today. One part of the law says that people using a fake I.D. to get a job in Georgia could go to prison for 15 years.
Plus, Leon Panetta takes over as the new secretary of defense today. General David Petraeus replaces Panetta as the director of the CIA.
And today, the 9/11 Health and Compensation Act takes effect.
At 10 o'clock eastern time, the authors of "The Act" will celebrate at Mount Sinai Medical Center here in New York.
All right. Time now to talk about sports, and boy, there are some big sports news to talk about. Pablo Torre is a reporter for "Sports Illustrated" joining us from New York. Pablo, all about the NBA lockout started at midnight. What does this mean for fans?
PABLO TORRE, REPORTER SPORTS ILLUSTRATED: Yes. Well, for fans, it allows us to finally get back to what we love about sports which is, you know, obscure counting rules and labor law. The problem is that NBA teams have been crying poor for quite a while, and they're saying that 22 of 30 of them lost money last year. And so, they want to be more like the NFL. They want shorter contracts. They want nonguaranteed contracts for players. They want revenue sharing.
And the players, of course, got a great deal in the last collective bargaining agreement. And they don't want any of that. And so, the canyon is so wide between the two parties. We may not have basketball for an entire year, Ali, which is a nightmare scenario. The first time ever we're not going to have an NFL season potentially and now an NBA season, which is just disastrous for any kind of sports fan.
VELSHI: All right. Pablo, I want to take a look at this. We talked the other day about Tiger Woods and his new endorsement deal, that commercial that he's in for this pharmaceutical company. Take a look at the commercial.
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(SPEAKING DIFFERENT LANGUAGE)
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VELSHI: All right. We don't need to understand the language to understand what they're saying. It's a little cream that gives you some heat and helps. What do you think of the commercial? Do you think it will help? I seem to have lost Pablo's audio. All right. We'll get back to him a little bit later on. Pablo Torre from "Sports Illustrated."
Hey, Kim Kardashian and Demi and Lady Gaga, L.A. police want these celebrities to tweet something. I'll tell you what it is when we come back. It's 42 minutes after the hour.
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VELSHI: Forty-five minutes after the hour. Good morning. It is Friday, July 1st. This is your A.M. AKE-UP CALL. I'm Ali Velshi joining you live from New York this morning. Let's go around the world, Zain Verjee standing by in London.
Zain, the story out here is that in a few hours, we're going to see a court appearance by Dominique Strauss-Kahn. Sources tell us that something is changing. That prosecutors are finding holes in his accuser's story.
ZAIN VERJEE, CNN CORRESPONDENT: It is a big, old mess, Ali. And it is stunning pieces of information that we're now getting that could completely collapse the case against Dominique Strauss-Kahn. The prosecutors are saying that there are serious questions about the credibility of the witness that has accused him of rape. Here's what they're saying. Now, the prosecutors have told Dominique Strauss- Kahn's team that the Guinean maid has not been truthful about details of a prior sexual assault case.
They also say that she wasn't honest about an asylum application that she had made from Guinea. "The New York Times" is reporting that there was this taped conversation between this maid and an inmate in a prison where she was recorded as having said, well, let's see how can I take advantage of this the situation with Dominique Strauss-Kahn. How can I benefit from it?
There are also many other questions and inconsistencies that investigators have found about the information that she has given them about this case. So, there's a hearing today, and it's throwing questions about the whole legal system here. Why would prosecutors have come forward to this, if -- with these charges against him if they did not have a watertight case? Could Dominique Strauss-Kahn now walk? Maybe -- Ali.
VELSHI: Well, you know, we were talking to Jim Bitterman who is our man in Paris. He did sort of an informal survey of people on the streets, and they were all universally saying, it doesn't really matter at this point. The damage has been done. His political career is over. Is that how this is playing in other circles?
VERJEE: That is one of the major questions. I mean, he's respected professionally by many people in France, but they seem personally as damaged goods. But, technically, he has until July the 13th. If he is cleared of these charges, to file papers to run for a presidential candidate in the French elections. Even a socialist party, they're talking about, hey, wait a minute, maybe we can even delay our primaries before, before, you know, so that we can accommodate him if he gets to walk.
The thing is here, even though he's personally damaged, the fact that the U.S. justice system may have failed so badly, it could just make him a martyr and give him a big boost. We don't know. That's going to be a huge story today.
VELSHI: This is going to be a huge story today. It's going to be what everybody is talking about. They thought when this case was laid against him, that it was air-tight. We'll have to see what is developing. It's a few hours from now.
VERJEE: Right.
VELSHI: We'll stay on it. Zain, good to see you. I'll see you in a few minutes on "American Morning.
Leon Panetta will be sworn in today as the U.S. secretary of defense. The Senate unanimously confirmed him last Tuesday. He is leaving the top spot at the central intelligence agency to take the reins at the defense department. Panetta called the killing of al Qaeda leader, Osama Bin Laden, in May, a highlight of his tenure at the CIA. David Petraeus takes over from him at the CIA.
The U.S. Senate is taking Independence Day off, but will not be out for an extended Fourth of July recess, which is normally what they do. Senate Majority Leader, Harry Reid, announced yesterday they're skipping the planned week-long break to revive talks on reducing the deficit and raising the debt ceiling.
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SEN. HARRY REID, (D) MAJORITY LEADER: What we have to do is too important not to be here and try to resolve what needs to be done. We really don't have any time to waste.
(END VIDEO CLIP) VELSHI: Prosecutors in the Casey Anthony trial can call rebuttal witnesses today after the defense rested without putting her on the stand. The jury heard from the woman who claims that she had an affair with Casey's father. Here's what she says George Anthony told her about his granddaughter, Caylee's death.
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KRYSTAL HOLLOWAY, ALLEGED WITNESS: He had said it was an accident, that snowballed out of control, but that I was in shock, and by the time I looked up, his eyes were filled with tears, and I didn't elaborate.
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VELSHI: The trial starts up again around 8:30 eastern time this morning.
In Florida, an autopsy finds pro-wrestler, Macho Man, Randy Savage, died of natural causes, not from injuries that he may have received in a traffic accident in May. A medical examiner's autopsy lists the official cause of death is heart disease. Now, that's thickening of the artery walls that can lead to a sudden heart attack.
In New Mexico, firefighters describe a massive wildfire burning in far surrounding the Los Alamos Nuclear Weapons Lab as really aggressive. And winds gusting up to 45 miles an hour made it tough to fight. The Los Alamos Lab and adjacent town have been evacuated since Monday. Lab and fire officials say release -- no release of radiation or other hazardous materials has been detected.
Let's go to Rob Marciano live in Atlanta. Rob, what's it looking like? Any flight delays, first of all?
ROB MARCIANO, AMS METEOROLOGIST: We've got a couple that we're going to be watching. The threat for severe storms this afternoon is going to be across the upper plains, so Minneapolis will be a spot. Last night, if you live in Chicago or were traveling through there, they got hit with some thunderstorms that had some big-time hail. This afternoon, Tampa, Orlando, Miami, so Florida, which could use the rain, everyone, except for Miami, actually could use the rain.
They'll get some this afternoon. Thunderstorms in Minneapolis as mentioned. And low clouds and showers left over this morning in Chicago. So, be aware of that. And the heat is going to build if you are traveling out this way, travel light. Pack light and dress light, because temperatures are going to be close to 100 degrees, and with the humidity, it's going to feel a lot hotter than that.
Ninety-one degrees expected in Chicago, 83 degrees in New York City, likely cooler in Canada. You probably touched on this earlier, Ali, but if you could remind me and our viewers exactly what Canada Day is all about?
VELSHI: This is the day that Canada became Canada.
MARCIANO: Kind of like our Independence Day?
VELSHI: It's like Independence Day. It wasn't a revolution that led to it. It's a sort of, you know, a date, but it's fantastic day. Everybody is off. The royals are there having a great time. And you know what they eat in Canada right on days like this? You eat beaver tails if you're in Ottawa where our good friend, Max Foster, is. They're not real beaver's tails. They're like a doughnut.
MARCIANO: OK. VELSHI: And poutine. You ever had poutine?
MARCIANO: No. And I've been to Canada several times.
VELSHI: It's great. Crispy French fries and you put cheese curd and then you put sort of burnt dark gravy on it and it all mixes up and it's gooey, and it's --
MARCIANO: Curd and burnt dark gravy. It sounds delicious. Happy Canada Day, everybody.
VELSHI: Rob, stick around for this one.
MARCIANO: OK.
VELSHI: Los Angeles wants a few good celebrities. They want -- police there want celebrities that have big Twitter followings to send out an important message. Part of the freeway there is closing for one weekend in July. So, they've asked all these celebrities to get the word out. Some of them are actually doing it. Here's what some of the celebrities are saying so far.
William Shatner tweeted, "L.A. friends, have you heard about carmageddon? 405 will be closed on July 16th and 17th."
Ashton Kutcher got a lot of followers tweets it, too, but then he tax (ph) on the end. He said, "In exchange, I would like a free pass on the stoplight ticket, it was yellow."
I'm actually kind of fascinated, Rob, that they're actually telling people about things that are going to cause traffic delays in L.A. Like, I just kind of assume when go to L.A., it's just a big traffic delay.
MARCIANO: Yes, that's true. But the fact that these big-time celebrities are participating in issuing a public safety announcement, that's good.
VELSHI: It's nice.
MARCIANO: I'm surprised they didn't ask you. You've got what, tens of thousands. You've got a few, pal.
VELSHI: I'm just celebrating Canada Day today. Good to see you, my friend. Maybe next time I see you, you give us the weather in Canada.
MARCIANO: OK. You got it. VELSHI: All right, buddy. See you.
MARCIANO: See you.
VELSHI: Today's word of the day, Super PAC. It's not a juiced up version of Pac-Man. Find out what it means and why you need to know it right after this short break. Fifty-three minutes after the hour.
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VELSHI: Fifty-six minutes after the hour. Before the break, I told you our word of the day was Super PAC. It's the type of political action committee that can receive unlimited funds from corporations, unions, and individuals to spend on outside groups to campaign for or against candidates or interests. Mind the number. Campaign finance term, right? Not when Stephen Colbert gets his own.
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STEPHEN COLBERT, HOST, "THE COLBERT REPORT": I don't know about you, but I do not accept limits on my free speech.
(CHEERS AND APPLAUSE)
COLBERT: I don't know about you, but I do not accept the status quo.
(CHEERS AND APPLAUSE)
COLBERT: But I do accept Visa, MasterCard, and American Express.
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VELSHI: All right. Here are three things to put on your radar today. Former IMF chief, Dominique Strauss-Kahn, goes before a judge today to try and get his bail reduced. Prosecutors say they've discovered credibility issues, serious ones, with the woman who accused him of sexual assault. That hearing is at 11:30 a.m. eastern this morning.
The Georgia immigration law targeting illegal immigrants goes into effect today. One part of the law says people using fake I.D. to get a job in Georgia could face up to 15 years in prison.
Leon Panetta takes over as U.S. Defense Secretary today. General David Petraeus replaces Panetta as the director of the CIA.
Let's go over to Hong Kong where Anna Coren is standing by with the quick check of the markets. Anna, good morning.
ANNA COREN, CNN CORRESPONDENT: Yes, Ali. Once I fill you in on the markets, you can snack on your poutine. Your snack that you, Canadians, love so much. Here in the Asia-Pacific, markets closed mostly higher. Nikkei rose to almost two-month high before closing about half of percent. European markets have been open for a few hours, they're slightly up. We'll see how they do over the next few hours. Wall street was stronger overnight. The S&P 500 closed higher, marking the fourth straight day of strong performance. And we'll see if Europe's performance will affect you guys in the U.S., Ali.
VELSHI: And we're looking at something going on with Google and prescription drugs. What's the story there?
COREN: Yes. Well, they're facing a huge fine, up to $500 million. Some FDA agents went undercover, and now, they -- and prosecutors are making a big accusation that Google took advertising money from rogue drug websites, ones that were selling highly addictive drugs without prescriptions. And they're saying Google did it on purpose for three years.
We're talking narcotics like Percocet and OxyContin, stimulants for ADHD, and even anti-anxiety drugs like Ambien and Ativan. All these, Ali, are very addictive. If they slap Google with a fine, it will be the largest of its kind in U.S. history.
VELSHI: And Anna, you know that movie "Snakes on a Plane." Check this out. A guy was caught trying to sleep on a flight between Seattle and anchorage when he felt something crawl up his sleeve. He brushed it away without looking and then felt it again, and he saw it was a scorpion that had apparently gotten through security in Austin where the flight started. That's kind of gross, Anna.
COREN: That is, that is very scary, but I was reading that, apparently, a reptile expert said that if he had calmly removed it, it wouldn't have stung him. He was too threatening to the scorpion.
VELSHI: All right. Anna, you mentioned poutine at the beginning of this -- a great Canadian food on Canada Day.
COREN: I do.
VELSHI: Have you ever eaten poutine?
COREN: No, I haven't, but I know you speak very fondly of it.
VELSHI: I do. I do quite enjoy it, French fries, cheese curd, and gravy all mashed together. Perhaps, one day, we'll get a chance to enjoy a Styrofoam bowl of poutine together.
COREN: I'll look forward to it.
VELSHI: Anna Coren, thanks very much. Good to see you as always. Anna will continue to cover her news on CNN international. We'll take it over right now in the United States. "American Morning" continues right now.
