Return to Transcripts main page
CNN Newsroom
Ford Motors Cutting North American Production; Barack Obama Reaching Out to Voters in Florida; Big Oil Execs Back on Capitol Hill; Time Bomb in the Toy Box; Keeping Your Memory Sharp
Aired May 22, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: And good morning, everyone. You are in the CNN NEWSROOM. I'm Tony Harris.
FREDRICKA WHITFIELD, CNN ANCHOR: And I'm Fredricka Whitfield.
HARRIS: You will see events coming to the NEWSROOM live on this Thursday morning, May 22nd.
Here's what's on the run down.
WHITFIELD: New record highs -- oil and gas prices step on it. Industry execs explaining to Congress again this morning.
HARRIS: The campaign said it's just a social gathering. Three would-be vice presidents invited to dinner at the McCain ranch.
WHITFIELD: And the body count soars past 50,000 in China today. Live from the earthquake zone 10 days after the disaster, in the NEWSROOM.
HARRIS: No end in sight. Gas and oil prices spiral upwards setting new records overnight. The bottom line, it's costing us more.
Ali Velshi tracking "Issue #1" from New York.
Ali, the price goes higher. I have to dig deeper...
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes.
HARRIS: ... which means I have less money for everything else. I don't know about you, but there is a lot of everything else in my life...
VELSHI: Yes.
HARRIS: ... that I need to cover, Doctor.
VELSHI: And the everything else has also gotten more expensive because if it gets shift anywhere, it gets brought on a truck or it gets produced on a farm, that gas price is costing more as well.
$135.09 is what a barrel of oil hit overnight. Tony, in a 24 hour period leading up to last night when it first hit that price, oil had gained $5 in one day, $5 in one day. Gasoline prices, a new record, the 15th in a row, and up more than two cents in one day. These are not sustainable prices.
Take a look at the price of oil just since the beginning of the year. Just since January 1st of this year, oil is up over 30 percent. $133, a little higher than that at the moment, but that's the kind of range we've been looking at.
This is a real problem, Tony.
Now I want to show you something that we've been working on because we want to find out how much this oil really costs the oil company.
HARRIS: Great.
VELSHI: And there's a big range on this, obviously, because you get oil from different places. If you drill straight down into dry, accessible land, maybe the oil is 1,000 feet below, you might get oil out for about 20 bucks a barrel. You go up shore, it starts at 20 bucks a barrel depending on where it is and how convenient it is. It could go up to 60 bucks a barrel.
If you go into deep sea drilling like off the coast of Brazil where they think they've got a massive oil reserve?
HARRIS: Yes.
VELSHI: You're looking at least 60 bucks, but billions of dollars in expense before that.
HARRIS: There you go.
VELSHI: In the western United States, Tony, we have shale. You can get oil out of shale. That's an expensive process, $30 to $50. And in Canada, we talk about the oil sands, massive reserves, bigger than Saudi Arabia, but can you see that's even more expensive, 50 to 60.
HARRIS: Yes.
VELSHI: But look at those numbers. You don't see 80 there. You don't see 90, 100, 110.
So that's the point, that at 60 buck as barrel, it becomes economical and profitable for companies to be finding oil pretty much in the most difficult circumstances around. And $135 a barrel? You should be able to find oil out of paper or my vest, you know?
HARRIS: You know, the maddening aspect -- and there are several...
VELSHI: Yes.
HARRIS: ... that are absolutely maddening in this -- is that there is a sense of helplessness. And you've kind of touched on it there.
VELSHI: Yes.
HARRIS: You know, we're Americans. We're used to the idea that we can fix anything. But it doesn't seem to be...
VELSHI: It's not up...
HARRIS: ... an easy fix to this.
VELSHI: Yes.
HARRIS: And we feel a bit helpless about this.
VELSHI: It's not just -- and the problem is it's not just our problem. You see we can switch to smaller cars.
HARRIS: Yes. Yes.
VELSHI: That's how you can help yourself or change your...
HARRIS: Yes.
VELSHI: ...heating. But the fact is China, India, those places are growing. A lot of that is what's driving the price of this oil up. So there is absolute helplessness. The only thing we can do -- and some say it's a good thing -- that at these prices it forces us to look for alternatives in our own lives...
HARRIS: Absolutely.
VELSHI: ... that are more economical.
HARRIS: Ali Velshi, "Minding Your Business." Ali's back with us next hour. See you then. Thank, Ali.
VELSHI: OK.
WHITFIELD: Mean time oil executives are facing another grilling on Capitol Hill this morning, defending record industry profits before a House panel. They've already gone before a Senate committee, asked if they have a corporate conscience -- conscience, that is, the executives said they do and blames Congress for limiting U.S. exploration and drilling.
(BEGIN VIDEO CLIP)
J, STEPHEN SIMON, SENIOR V.P., EXXON MOBIL: When energy prices are high, the urge to point fingers at oil companies is strong. But undercutting the ability of American companies like Exxon Mobil to compete in a huge global marketplace only makes it harder for Americans to secure the energy they need at competitive prices.
(END VIDEO CLIP)
WHITFIELD: And Republican's efforts to expand drilling in places like the Alaska wildlife refuge have failed. HARRIS: Well, rising fuel prices are cutting deep into airline profits. How to make it up? American Airlines plans to charge passengers for every checked bag.
Alina Cho getting reaction in New York.
(BEGIN VIDEOTAPE)
ALINA CHO, CNN CORRESPONDENT (on camera): This is something the flying public simply is not used to. American Airlines says it's going to cost an extra $3 billion to fly this year, all because of soaring jet fuel prices. So the airlines have decided starting June 15th to start charging passengers $15 to check their very first bag.
Now here's the break down. $15 for the first bag, $25 for the second bag, and here's where it gets interesting, $100 for the third bag. That means a family of four traveling -- that will cost an extra $60 each way minimum.
American says it will also have to cut back flights and that will mean some layoffs, too, but you know, we're all used to paying $8 for that sandwich, maybe $3 for trail mix, but did you know this? If you want a premium coach seat, say on JetBlue, that will cost you an extra $10 to $20.
If you want to fly with a small child on your lap, that can cost anywhere from $10 to 10 percent of the adult fare. And if you want to bring Fluffy or Spot on board, say you want your pet with you in the cabin, that can cost anywhere from $50 to $85.
As for the $15 charge for the first bag checked on American, the reviews here at New York's LaGuardia have been mixed.
UNIDENTIFIED PASSENGER: I'd rather them charge more for the flight than add it on to the bags. I mean it's understandable that gas prices are going up, but I mean, right now, adding it on to the bags is just -- I don't know.
UNIDENTIFIED PASSENGER: Short term, American Airlines is losing money. Got to make it up somehow.
UNIDENTIFIED REPORTER: So you think it's a fair charge.
UNIDENTIFIED PASSENGER: Yes.
UNIDENTIFIED REPORTER: Really?
UNIDENTIFIED PASSENGER: Pay per pound. They should charge me extra for being fat.
CHO: We should mention that if you're an elite passenger, if you're flying first or business or you're flying internationally, you are exempt. But in effect, you are paying by the pound. American calls it a fee, but it's essentially a fare increase.
U.S. airlines have tried to increase fares 15 times just this year. Eleven of those attempts have succeeded and that means if you're flying domestically, it will cost you about $100 more this year than last year.
Airline analysts say people want bear bones fares. They don't want to subsidize other people carrying around their wardrobe. Airlines simply can't afford the cost and this is one way of keeping up.
Alina Cho, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: And guess who's coming to dinner? John McCain's guest list for a weekend cookout tops our look at the presidential politics. The list includes rumored running mate candidates, Florida governor, Charlie Crist, Louisiana governor, Bobby Jindal, and former Massachusetts governor and presidential candidate, Mitt Romney.
The McCain camp said it is just a social gathering. Only the burgers, not the guests, will be grilled.
As for the Democrat, Hillary Clinton is in Washington today after campaigning in Florida. She is still pushing to have votes from the Florida and Michigan primaries counted. And Barack Obama starts the day in Washington before heading back to Florida. He's campaigning there with an eye on the general election come November.
And more now on John McCain's weekend get-together and the buzz over possible running mates, CNN's Mary Snow live from New York.
How significant, Mary, is this? It seems like they...
MARY SNOW, CNN CORRESPONDENT: Hi, there. You're right. Hi there, Fredricka.
You know, as you said, the McCain camp is saying, look, this is a social event. There are going to be 10 couples out at the McCain's home. But certainly it's fueling the speculation because of the three potential or people seen as potential running mates on that list.
Although the McCain camp has been very tight lipped about who it is really looking at, but as you mentioned, Charlie Crist, the governor of Florida, very popular governor. He endorsed John McCain in the Florida primary at a late stage and, of course, Florida is such a key state.
Mitt Romney, his former rival, and Mitt Romney seen as helping with the conservatives, also on the economy, and then economy, as we all know, is not seen as one of John McCain's strong points.
And Bobby Jindal, the Louisiana governor at 36, certainly is the big contrast to John McCain who is 71.
So these -- there's a lot of talk about this, but, of course, as we've said, really no official business according to the McCain campaign, but you know, you wonder, this is seen as a compatibility test, how do people get along, and this is certainly a setting where that can be tested.
WHITFIELD: Interesting. And Many, meantime, you know, John McCain is on a roll. He was on "SNL," "Saturday Night Live," and now it's off to "Ellen." But at the same time, he got a little bit of grilling, didn't he?
SNOW: Yes, you know, he really did. And as you know, last week when California ruled that gay marriage was -- same sex marriage would be legal in that state, Ellen said that she was going to be marrying her long-term girlfriend. So on his show -- on her show, she had Senator McCain and she asked him what he thought about gay marriage.
Take a listen.
(BEGIN VIDEO CLIP, "ELLEN")
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I think that people should be able to enter into legal agreements and I think that that is something that we should encourage. I just believe in the unique status of marriage between man and woman.
ELLEN DEGENERES, HOST, "ELLEN": There is this old way of thinking that we are not all the same. We are all the same people, all of us. You're no different than I am, our love is the same.
MCCAIN: We just have a disagreement and I along with many, many others wish you every happiness.
DEGENERES: Thank you. So you'll walk me down the aisle? Is that what you're saying?
(END VIDEO CLIP)
SNOW: (INAUDIBLE) and laugh but you could see the differences there in opinion. And this is also (INAUDIBLE) an attempt by Senator McCain. You mentioned he was on "Saturday Night Live." He did an "Essence" magazine interview in the past couple of days. It's all an effort for him to be seen in a different kind of setting.
WHITFIELD: All right. Mary Snow, thanks so much.
SNOW: Sure.
HARRIS: First snow, then rains, and now floods. And this dramatic rescue on a bloated St. Joe River in northern Idaho. The man's truck got stuck yesterday in the rising waters. His neighbor tried to reach him in a row boat, but the strong currents forced him to abandon that idea. Rescue teams arrived and eventually brought the man to shore.
There you go.
Flood warnings are still up in that area.
WHITFIELD: Wow. And this wave of wacky weather just continues to push on. Rob Marciano's been very busy... ROB MARCIANO, CNN METEOROLOGIST: Yes.
WHITFIELD: ... all morning as you have been...
HARRIS: Yes, man.
WHITFIELD: I don't know. This is getting redundant. It's like a broken record. Busy, busy, busy. Bad weather everywhere.
(WEATHER REPORT)
MARCIANO: Memorial Day, guys. Can you believe that?
HARRIS: How about that?
MARCIANO: Can't believe it.
WHITFIELD: That's weird.
HARRIS: Fire up the grill.
WHITFIELD: Where has the year gone already?
HARRIS: May. Yes.
WHITFIELD: Yes.
HARRIS: Second quarter. Here we go.
Good to see you, Rob. Thank you, sir.
MARCIANO: All right, guys.
WHITFIELD: (INAUDIBLE)
HARRIS: Meet China's mother number one.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: "I think what I did was normal," she says. "In the quake zone, many people do things for others. This was a small thing not worth mentioning."
(END VIDEO CLIP)
HARRIS: Yes. a small thing to her, but a life-saving gift to others.
(COMMERCIAL BREAK)
HARRIS: And welcome back, everyone, to the CNN NEWSROOM. I'm Tony Harris. Something just in we want to share with you. Let me attribute this to the Associated Press, Detroit, Michigan.
Ford Motor Company is cutting North American production for the rest of the year. Why? They've been talking about it for weeks here. Gas prices, the weak economy. No more specifics than that at this point.
Boy. Cutting production by how much? Any layoffs attached to this notice?
We're going to check it out with Ali Velshi and get you more details right here in the NEWSROOM.
Buy a car, get free gas, or a free gun.
(BEGIN VIDEO CLIP)
WALTER MOORE, MAX MOTORS: I get in the vehicle to better trade. There's guns in the seats, there's guns in the back windows. Everybody's got a gun down here, so no backlash.
(END VIDEO CLIP)
HARRIS: Find out which gift car buyers prefer in the NEWSROOM.
(COMMERCIAL BREAK)
WHITFIELD: The government death toll has jumped to more than 51,000 from that catastrophic earthquake in China.
CNN's Kyung Lah live from Chengdu now with the latest on relief efforts. Some U.S. relief is arriving in the area, but is it actually getting to anyone?
KYUNG LAH, CNN CORRESPONDENT: Well, we're seeing it definitely arrived here in Chengdu. This is the largest city, Fredricka, just next to the earthquake zone. But the numbers are very sobering and there is so much need.
You mentioned the 51,000 who are dead, according to the government. There are nearly 300,000 people who have been injured in the earthquake, some five million people who are homeless. The government today said that what they really need right now are tents. They need to put tents over these people's heads. They are asking for three million tents to be donated.
They don't really care where it's from. They just want the tents to get here. But then it has the trouble of trying to get anywhere.
Now here in Chengdu today we actually saw a shipment from the U.S. U.S. aids did arrive here with very large crates. These are all donated items. They are large earth breakers. They are concrete breakers. There are also generators.
And arriving with U.S. aid, this particular U.S. aid shipment, are nine rescue personnel from across the country and they are going to actually train the Chinese rescue personnel here to how -- on how to exactly use this equipment when they actually can -- actually get it out there to try to get to these people.
So one of the Fairfax firefighters who's a part of this nine- person U.S. aid crew said that in the wake of Hurricane Katrina, China donated money to New Orleans. This was his way as an American to give back to this country -- Fredricka.
WHITFIELD: That is extraordinary. Meantime, let's talk about the Olympic Games just a couple of months away in Beijing. How might all of what's taking place in this province affect the Olympics?
LAH: Well, immediately what it's doing is certainly affecting the torch relay. It did just start again today. Tomorrow, we're going to actually see something quite extraordinary. In Shanghai, the torch is going to make its way through Shanghai and four people who are a part of the quake relief, four people who were in there, who were digging trying to get people out -- those four people are going to be running through Shanghai carrying their Olympic torch -- a doctor, a firefighter and two volunteers.
This is China's way of nodding to them and also they pushed back the run through the Sichuan province back three weeks. It's going to be the last leg of the Olympic torch relay before going to Beijing -- Fredricka.
WHITFIELD: Wow. All right. Thanks so much, Kyung Lah there in Chengdu.
And, of course, you can help. At CNN.com, we have a special page on the devastation in China and Myanmar, plus links to aid agencies that are organizing help for the region. It's a chance for you to "Impact Your World." So let us be your guide.
HARRIS: OK. And Fred, let's get back to the story that now CNN has confirmed. The Ford Motor Company advising that it is cutting North American production for the rest of the year as -- boy, because of this flagging economy.
Ali Velshi is standing by in New York.
Ali, I hope we've given you enough time to sort of...
VELSHI: Yes, we've got -- we've been able to confirm this.
HARRIS: ... work your sources -- yes. OK.
VELSHI: It's tied exactly to this gas price I'm telling you about. North American car and -- truck production is going to be reduced at Ford for the remainder of this year and they are saying to reflect the continuation of rapid changes in customer buying preferences.
HARRIS: Yes.
VELSHI: And that's exactly what we talked about. Dramatic model shifts -- these are Ford's words -- away from large trucks and SUVs. Higher commodity costs are forcing a change.
Now, Ford is saying, by the way, they had expected to be profitable by the end of 2009 as part of this massive change that's been under way for a few years. All these layoffs that we've been talking about, Ford now saying they will not be profitable by the end of 2009. They might hit into profitability in 2010 so it's a fairly major shift.
They are directly attributing this to changes in customer buying habits because of the high price of gasoline. So we are seeing -- we did see a little earlier this month massive drop-offs in truck sales at all the North American automakers.
HARRIS: Yes.
VELSHI: Now we're seeing Ford is saying they're cutting back on their production for the rest of the year, making major cuts. We're going to get a little more specific about...
HARRIS: Yes.
VELSHI: ... where they're cutting and what they're cutting, but at least they're saying it's because people are not buying those due to gas prices.
HARRIS: You know what sounds interesting about all of this, Ali? And we've been talking about this for, it seems, months now.
VELSHI: Yes.
HARRIS: You know there probably will always be something of a market for trucks, for pickups.
VELSHI: Sure.
HARRIS: It's America after all. The other side of it is: could this potentially be the death, the sounding of the death bell, for the SUV? If you're trying to scale back your life right now and you have one of these minivans or SUVs and you're trying to move that...
VELSHI: Yes.
HARRIS: ... you're having a difficult time selling that vehicle right now.
VELSHI: There are -- you're absolutely right. There are two things that we can see a shift in.
HARRIS: Yes.
VELSHI: One is that there are a lot of these larger vehicles that are more fuel efficient. They are moving to hybrids. So if you really need that space...
HARRIS: Yes.
VELSHI: ...there are going to be choices you can make where -- you know New York taxi cabs. There are hundreds of these...
HARRIS: Good. Good.
VELSHI: ... these little hybrid trucks, SUVs...
HARRIS: Kind of crossover vehicles.
VELSHI: Crossover vehicles.
HARRIS: Yes.
VELSHI: The other thing that can be done is we can sort of take a page out of the European song book and say, do we really all need this? Because Europeans seem to manage quite effectively in little cars and get everywhere they need and get their family and buy the things they need.
HARRIS: Absolutely.
VELSHI: So there's two ways to thinking on this. Do we -- can we downsize and if we don't downsize, can we become more fuel efficient? Bottom line is -- and many people have said this and you and I talked about this 20 minutes ago -- people are forced to make different decisions and now...
HARRIS: Yes.
VELSHI: ... we're hearing from Ford, they are making different decisions.
HARRIS: Ali Velshi in New York following this story. And there's the barrel.
VELSHI: Yes. Unbelievable.
HARRIS: $135 for a barrel of crude oil. Light sweet.
All right. Ali, appreciate it.
VELSHI: Nothing sweet about that.
HARRIS: Yes. Thank you, Ali.
Big oil executives called to answer on Capitol Hill today. What's causing the run-up on gas prices and what, well, if anything, can they do about it?
(COMMERCIAL BREAK)
HARRIS: Free gas? Sounds like a fantastic deal particularly in this economy. Well, for some car buyers, a gun is as good as it gets.
Chris Nagus from affiliate KMBC has the story.
(BEGIN VIDEOTAPE)
CHRIS NAGUS, KMBC REPORTER: This is a semi-automatic handgun and it's yours with the purchase of a new car.
MOORE: I say it's just a choice. Protection or gas.
NAGUS: Walter Moore worked for Max Motors in Butler. He came up with the "Guns or Gas" promotion.
MOORE: (INAUDIBLE) you know, we got high gas prices. We got theft. We got carjackings. We got people -- innocent people getting hurt.
NAGUS: Moore says owning a gun is an American right. Jerry Hertzog agrees.
JERRY HERTZOG, CUSTOMER: We'll have guns and we all need to have guns.
NAGUS: But the idea isn't popular with everyone. One viewer told us he's concerned and believes the promotion is dangerous.
MOORE: How can you say it was a bad idea? Some people have the right to protect themselves.
NAGUS: Moore says most of his customers already own weapons.
MOORE: I get in the vehicle to better trade. There's guns in the seats. There's guns in the back windows. Everybody's got a gun down here so no backlash.
NAGUS: Given the option gas or one of these, most new car owners in Butler pick the gun.
MOORE: Right now we're probably running 80 percent toward the gun.
NAGUS: Count Jerry Hertzog among the majority. He's leaving with a new truck and never thought twice about the choice he was given. He's ready for target practice.
HERTZOG: Guns or gas or fuel. And I'll take the gun anytime.
(END VIDEOTAPE)
WHITFIELD: That scares me.
HARRIS: Look, the -- yes, the car dealer doesn't give out the gun, just the certificate so you can go get one and the car owner still has to pass a background check.
WHITFIELD: I hope so.
OK. Wanted, Republican Obama is what the GOP needs to do to find more minority candidates.
(COMMERCIAL BREAK)
TONY HARRIS, CNN ANCHOR: Oh, did we just miss the bell? Oh well, OK, all right. The after bell applause. It must have been a good sounding this morning.
FREDRICKA WHITFIELD, CNN ANCHOR: Hey, they are happy to be there. Yes. HARRIS: Well, as we get the business day started this morning, Fred, we take a look back to yesterday and what a rough day for stocks yesterday. Down 227 points. The NASDAQ down, as well, by a full percentage point.
And now we've got the news about Ford cutting production for the rest of the year because of high gas prices and all the elements of the economy -- this stalling economy that we've been talking about for months now. And you wonder what impact this news will have on the stock price.
WHITFIELD: And the crude oil now. $135.09.
HARRIS: So we're following the markets. We'll get a market check from Susan Lisovicz. She's with us throughout the morning right here in the NEWSROOM.
WHITFIELD: All right. Very good.
And you are in the CNN NEWSROOM. I'm Fredricka Whitfield.
HARRIS: And good morning, everyone. I'm Tony Harris. Let's tell the Ford story here. We mentioned it just a moment ago. Ford Motor company advising that it is cutting North American production for the rest of the year because of high gas prices. You see what's happening to the price of a barrel of crude oil.
And this is all due to the weakening economy right now and consumer preferences. Ford says it will cut production by 15 percent in the second quarter, 15 percent to 20 percent in the third quarter and two percent to eight percent in the fourth quarter.
The cuts primarily impacting pickups and sport utility vehicles which have seen sales as we've documented here in the NEWSROOM with Ali Velshi and with Gerri Willis. Sales of those vehicles just plummeting. The concentration now will move to more vehicles and crossover vehicles.
We'll continue to follow this story for you right here in the NEWSROOM.
WHITFIELD: And of course we're continuing to watch presidential politics -- Democrats and the fight for Florida. Barack Obama is reaching out to skeptical voters in the Sunshine State.
CNN's Jessica Yellin is live from a very sunny Miami.
Jessica, what's on tap for today?
JESSICA YELLIN, CNN CORRESPONDENT: It's a big day for Barack Obama today, Fredricka. He is making a special visit to some of Florida's Jewish voters. He has had some difficulty connecting with the Jewish community around the country and is making a concerted effort to assuage Jewish voters here in Florida about his Israel policies, some of his recent comments on Iran, and his general view toward creating peace in the Middle East. So he's going to a synagogue in Boca Raton today this afternoon to take questions from some folks there. A recent Quinnipiac poll shows that Barack Obama is actually trailing John McCain in Florida where is Senator Hillary Clinton is beating him in Florida.
So Barack Obama has quite a bit of work to do here to turn around his fortunes and connect with his base here with the natural base. To that end, he was here also yesterday talking to voters about not just his broad policy positions, but his determination to make sure that Florida's delegates are seated at the convention even though there's been an inter-party squabble that calls that into question. Let's listen to what he said.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: My hope is in a couple weeks time that we won some more elections, we won some more delegate, we've gotten the Florida delegation seated, so that they're going to be at the convention. And then we're going to have a convention in August and I'm going to accept that nomination.
(APPLAUSE)
And then you and I together, we're going to have to work hard to make sure that we win Florida, we win this general election, and then you and I together, we're going to change the country and change the world.
(END VIDEO CLIP)
YELLIN: Now you see that Barack Obama looking forward to the general election in his comments in Florida. Senator Clinton was also here yesterday, but she was in a sense looking back at the primary that took place here January 29th. Also addressing the delegate question.
She brought up Florida's very difficult experience in 2000 with the Florida recount that was such an emotional hurdle for the Democrats that has haunted the party to this date. And she made this argument that the Florida recount is one reason Florida's full delegation should be seated.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: We must do everything we can to discern the intent of the voter and honor it. Many of us believe that the candidates who got fewer votes was inaugurated president. And we know that of all states, this state should have extra attention to make sure your votes are counted because you should never be disenfranchised.
(END VIDEO CLIP)
YELLIN: Now, the Democratic National Committee will ultimately decide how many of Florida's delegates get seated. They make that decision on May 31st. Already today, the Obama campaign has indicated they will give a little. They'll let Senator Clinton who won here overwhelmingly have slightly more delegates and they're willing to compromise. So it looks like it's moving toward a resolution.
Fredricka?
WHITFIELD: Interesting, Jessica. You talked about and underscored a significant portion of the electorate there in Florida. But also there is that Cuban-American community -- Latino community there that Barack Obama really has to appeal to just as Hillary Clinton already has, just has McCain already has.
YELLIN: You're absolutely right. Tomorrow, he is going to speak to Cuban-Americans here in Miami. And yesterday, he tried to address Puerto Ricans in an event in Central Florida. But I should point out, Fredricka, just from eyeballing the crowd, which is quite full, only about 30 percent of the audience seem to be Latino.
So he is not even getting the, you know, eyes and ears of that community to the extent that I'm sure the campaign would like. So he is quite a bit of distance to cover to win over both -- a number of these very key constituencies in Florida.
WHITFIELD: All right. Jessica Yellin there covering the Obama campaign from Florida. Thanks so much.
HARRIS: Let's take everyone to Capitol Hill right now. Great pictures right now on the air for you. Generals -- they are really looking at the Armed Services Committee -- the Senate Armed Services Committee. General David Petraeus as you know has been nominated to assume control of all U.S. forces in the Middle East as commander of CENTCOM.
And his deputy, Lieutenant General Ray Odierno, has been picked to replace Petraeus as the top commander in Iraq. This will give committee members, particularly Democrats, an opportunity to ask questions that they've asked on a number of occasions.
When more troops might come home and whether the U.S. war effort there in Iraq has actually aggravated the situation on the ground. No surprises expected today. The nomination is expected both of them to be approved.
WHITFIELD: All right. Meantime, also on Capitol Hill, the subject is gas. Gas prices and the politics of such. Big oil execs back on Capitol Hill this morning to explain the surge in prices. They collided with frustrated senators, Wednesday. CNN's Joe Johns reports.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CORRESPONDENT (voice-over): The politics of the pump, it's a huge issue for everyone. So it was all but hostile when the Senate had a bunch of top oil company executives come in to explain their billions in profits versus what we pay for gas.
SEN. RICHARD DURBIN (D) ILLINOIS: Is there anybody here that has any concerns about what you're doing to this country?
SEN. DIANNE FEINSTEIN (D) CALIFORNIA: You racked up record profits -- record profits for any corporation in the United States of America quarter after quarter after quarter. And apparently have no ethical compass about the price of gasoline.
JOHNS: The response and we've heard it before. The money oil companies make goes back into producing more oil.
PETER ROBERTSON, VICE CHAIRMAN, CHEVRON: That we are investing all of our earnings. That's why we earn money is to invest.
JOHNS: In fact, they blamed supply and demand and said if you want lower gas price, then let them do more drilling.
J. STEPHEN SIMON, SENIOR VICE PRESIDENT, EXXON MOBIL: This is the only government in the world that denies its citizens access to known recoverable oil and gas.
JOHNS: It's complaining about bans on drilling in places like Alaska where there are environment worries. Some politicians fear voters may be so angry about gas prices, they'll take it out on them.
REP. TOM DAVID (R) VIRGINIA: The energy prices drag the whole economy down as they go up. So there's no question that it's going to be front and center.
JOHNS: Retiring Congressman Tom Davis of Northern Virginia is from the suburbs of Washington D.C.
(on camera): The D.C. area according to "Forbes" magazine has the third highest commuter costs in the country. $6.32 per every commuter every day just to get to and from work.
DAVIS: I mean, there are a number of reasons that energy prices are up and the war is one of them. But it's not the only cost. There's a huge supply and demand problem on top of that and the fact that we haven't produced more energy domestically.
JOHNS (voice-over): So what's a politician to do with gas prices like this? Blame the other party, of course. And that's the plan. But then they could also vote to open up off limit drilling sites in Alaska or off the coast which to some sounds more appealing now.
REP. CHARLIE MELANCON (D) LOUISIANA: You know, I can't imagine with the economy, the cost of food, the cost of gasoline, everything that's out there that's facing Americans, it's getting tougher and tougher, that there's not going to be some opposition and some concern and even some mad voters. So it's going to be interesting. Can we fix it before then? I don't know that we can.
JOHNS: Translation? No quick election year fixes. Joe Johns, CNN, Washington.
(END VIDEOTAPE) WHITFIELD: All right. Let's talk more stormy weather. There is Rob Marciano getting ready for what is sure to be -- shoot, another, I guess, hit of the day in terms to severe weather.
(WEATHER REPORT)
HARRIS: A father's fear.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I feel guilty because I gave her an object that could have easily killed her. I might as well handed her a gun.
(END VIDEO CLIP)
HARRIS: Magnets. One parent calls them a time bomb in the toy box. The CNN Special Investigation's Unit is on the story.
(COMMERCIAL BREAK)
WHITFIELD: A popular toy called Magnetix. Well, it's a magnetic building set and it's no stranger to controversy. Last year, there was a voluntary recall of millions of these toy sets after reports of children being injured from swallowing the magnetic pieces that fell out of the toy. Once child even died.
Well, the company said it made changes to make its product safer to the magnets so that the magnets would not fall out. Well, did that happen? Here's Special Investigations Unit correspondent Abbie Boudreau.
(BEGIN VIDEOTAPE)
UNIDENTIFIED DOCTOR: Can I take a look at your belly?
ABBIE BOUDREAU, CNN INVESTIGATIVE CORRESPONDENT (voice-over): Haley Lents is 8 years old and her doctor says she's lucky to be alive.
JASON LENTS, HALEY'S FATHER: I feel guilty because I gave her an object that could have easily killed her. I might as well handed her a gun.
BOUDREAU: Nearly two weeks ago, the Lents rushed Haley to the hospital for emergency surgery. While playing at home with the popular Magnetix, Haley swallowed 20 steel balls and ten magnets. This is the x-ray taken of Haley where you can see all the small pieces. Pieces doctors say were ripping holes in her intestine.
DR. ALAN LADD, RILEY'S HOSPITAL FOR CHILDREN: Well, she had multiple areas where the magnets had stuck together between different moves of intestine.
BOUDREAU: Haley said she thought the small shiny balls looked like something she could eat.
HALEY LENTS, SWALLOWED MAGNETS: I like candy a lot. So that's why I ate them.
J. LENTS: She looked at me and said mommy and daddy, am I going to die.
BOUDREAU: Haley's parents didn't realize when they bought a Magnetix set last Christmas the toy had already been recalled. In 2006 and 2007, Mega brands recalled more than four million Magnetix sets after the Consumer Products Safety Commission reported 27 intestinal injuries and one death. After these toy magnets were ingested.
The company redesigned the product by encasing the powerful magnets in plastic and that redesigned toy appears to be what the Lents bought.
(on camera): Yet doctors say these magnets are so powerful that most parents don't realize that if the child swallows just two of these it could kill them.
J. LENTS: A lot of parents that don't know that they've got a time bomb in their toy box.
BOUDREAU (voice-over): Mega brands stands behind its product. It says it knows of one other case of a child who has swallowed a magnet rod since the recall. The company also says it created a new product designed to have no magnetic parts that can be swallowed. It will hit store shelves in July. Too late for Haley who says she has a message for other children.
H. LENTS: Don't eat them, kids.
(END VIDEOTAPE)
WHITFIELD: And that report from Abbie Boudreau while the age labels on the box state that this toy is meant for children six years and up, but doctors say even older kids can't seem to resist putting the little shiny pieces in their mouths.
Mega brands tell us that this is a highly unusual and isolated case and does not indicate any problem with the company's magnetic toys. It says its toys meet the highest safety standards and adds if the child swallows 30 pieces of any toy, it is likely to result in harm.
The company points out in this case no magnets got loose from the product. A spokeswoman for the Consumer Products Safety Commission says it is investigating.
HARRIS: Prediction comes true. China says the quake dead now tops 50,000. Live from the disaster zone in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Keeping your memory sharp. Oh, keep reading. CNN's Judy Fortin has details on how men and women can handle memory loss in their 30s, 40s and 50s. (BEGIN VIDEOTAPE)
JUDY FORTIN, CNN MEDICAL CORRESPONDENT (voice-over): Gordon Williams is a busy man. Owner of his own auto mechanics shop and a father of two active boys. He's always on the go. So from time to time, his memory catches up with him.
GORDON WILLIAMS, MECHANIC: You get side tracked. I mean, if the phone is ringing, you have paperwork, you have everything going on, you turn around you don't write something down, five minutes later, it's gone.
FORTIN: There are millions of people like Gordon. People involved in day to day stress. But when does a blip in our memory become a real problem. It's more than just forgetting a few small details.
DR. MICHAEL BATIPPS, NEUROLOGY, WASHINGTON HOSPITAL CENTER: Some people do start to actually get truly forgetful and need to rely more on writing notes or using a PDA or the latest thing is to have reminders in your cell phone.
FORTIN: Starting in our 30s, some memory loss can be expected. But how do we keep the mind sharp through the years. Stay active. Regular physical activity can improve circulation which keeps the vessels in the brain healthy.
BATIPPS: People who are physically active are less likely -- a little less likely to get dementia at an early age.
FORTIN: And get sleep. Eight hours a day can keep you sharp. Some people in their 40s are turning to memory courses or memory boot camps. Boot camps teach mind benders like puzzles to keep the brain active. Can't do boot camp, stock up on brain healthy food.
Researchers at Rush University in Chicago found foods rich in antioxidants and Omega 3 fatty acids, may keep brain cells from dying. And stay away from fatty foods.
BATIPPS: Studies have shown that memory problems do increase with the parallel to the risk of vascular disease.
FORTIN: In our 50s, if you're forgetting a lot, have family members watch your habits. Just forgetting names is no big cause for concern, but there are warning signs to watch for.
BATIPPS: When the person sort of is not recognizing the problem themselves. It's when their relatives or their significant others says, you know, you're being -- you're really forgetful that's a red flag to us that it probably is a problem.
FORTIN: As for Gordon Williams, he realizes he's not as young as he used to be and now jots down reminders to stay organized during his busier times. Judy Fortin, CNN, Atlanta.
(END VIDEOTAPE) WHITFIELD: All right. Some presidential politics type of news. For those of you who may have been thinking Obama-Clinton dream ticket. Well, maybe not.
We're now hearing from Democratic officials that Barack Obama has begun a top secret search for a running mate. And the party's likely nominee has asked former Fannie Mae CEO Jim Johnson to begin vetting potential vice presidential picks.
Johnson did the same thing for Democratic nominees John Kerry in 2004 and Walter Mondale in 1984. And, of course, this process will be a closely held secret as they continue with their backroom kind of meetings, closed-door meetings, trying to discern who might be the best potential running mate for what could be the likely nominee for the Democratic Party, Barack Obama.
So, of course, when we get more information on that, we'll be able to bring that to you.
Tony?
HARRIS: His name is David, and he's the new American Idol, but which David is it?
(COMMERCIAL BREAK)
WHITFIELD: Well, it looks like hell. The words of one Lake County Florida woman describing a fast moving wildfire that was practically on her doorstep. The 1,000 acre blaze north of Orlando forced her and hundreds of others to get out.
Authorities ordered mandatory evacuations as the fire threatened to cut off residents. Today, fire officials worry that high winds and dry conditions will spread the flames. Fires are also burning along Florida's Atlantic Coast.
Good morning again, everyone. I'm Fredricka Whitfield.
HARRIS: And I'm Tony Harris. Stay informed all day in the CNN NEWSROOM. Here's what's on the run down.
Issue no.1, jobs, blames high fuel prices. Ford announcing a short time ago it is cutting production of gas guzzlers for the rest of 2008.
WHITFIELD: Sure gas prices are eating your budget, but tacked on fees are also costing you. How to stop travel dollars from disappearing.
HARRIS: Quake dead. Passing the 50,000 mark. China pleading for millions of tents today, Thursday, May 20th. You're in the CNN NEWSROOM.
WHITFIELD: No end in sight. Gas and oil spiral upward setting new records and just last hour, Ford, announcing the pressure on your wallet is hitting its production lines. Ali Velshi, tracking issue no.1 from New York. And this is not good when we hear Ford Motor company.
