Return to Transcripts main page
CNN Newsroom
High Oil Prices; High-Tech Hunt on the Ocean Floor; Powerful Drugs to Treat Bipolar Disorder; Supreme Court Refuses to Block Sale of Chrysler
Aired June 10, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. We've got a lot to cover in the NEWSROOM today. Here's what we're working on right now.
A high-tech hunt on the ocean floor. We're going to show you how a nuclear sub will actually be searching for the voice and data recorders from flight 447.
And also, betting the economy will get better. The oil prices hit a high for the year so that usually means prices at the pump are going to go up, too. We'll take a look at that.
Plus, powerful drugs to treat bipolar adults. But are they safe for kids? Our Dr. Sanjay Gupta's going to be looking at those risks.
It is Wednesday, June 10th. I'm Heidi Collins and you are in the CNN NEWSROOM.
Chrysler's hopes for survival may look much more promising this morning. Last night, the Supreme Court refused to block the sale of Chrysler to an Italian automaker, Fiat. There are reports the sale could close as early as this morning.
For Chrysler the sale would be a big step closer to getting out of bankruptcy. Chrysler has said it loses about $100 million every day that it is in chapter 11.
Chrysler scored another victory when a bankruptcy judge approved its plan to close 789 dealerships. Now the closing of those dealerships will force thousands of job losses around the country and small communities everywhere will be hurting.
The same dealerships that donated a car to the high school raffle or cut a special deal for a family in need will be gone. In Lake View, Michigan, they're losing a neighbor that has been around for generations.
Here now, John Mills of CNN affiliate WZZM.
(BEGIN VIDEOTAPE)
JOHN MILLS, WZZM REPORTER (voice-over): Bollinger's has been reflecting life on Lake View's main street for 95 years.
BILL BESEMER, BOLLINGER'S CHRYSLER: I started in 1914 when Dodge built their first vehicle.
MILLS: Tuesday the dealership had two cars left to sell.
BESEMER: Service on 53, please. Service on 53.
MILLS: Owner Bill Besemer says he hopes to see his dealership to the century mark.
BESEMER: I thought we'd jump through all the hoops and all -- you know, the things that were suggested.
MILLS: Without help from the courts, he will never reach that milestone.
BESEMER: I'm very, very said that that has happened. We have not cost them one thing. If anything, we are revenue generating.
MILLS: Besemer says Chrysler didn't provide him with the reason Bollinger's landed on the dealer reduction list. Long-time customers say it wasn't for a lack of exceptional service.
UNIDENTIFIED FEMALE: It's a shame. It's the oldest dealership in the state of Michigan. Here since 1914. And people from this whole geographic area depend on this dealership.
UNIDENTIFIED FEMALE: This is going to be a very sad day without Bollinger's. Just for the simple fact that they're hometown folks, they take care of hometown folks.
UNIDENTIFIED MALE: We have confidence that this dealership is a good service.
BESEMER: I'm sure we can march right down new service.
MILLS: Besemer says he'll take some time to review the books and determine if Bollinger's can somehow survive without new car sales and warrantee work for Chrysler.
BESEMER: I am going to miss it a great deal. Yes. This has been my life.
(END VIDEOTAPE)
COLLINS: Well, as you can see, there's a lot to get a handle on with this Chrysler story.
I want to turn now to Christine Romans of the CNN money team to talk a little bit more about it.
So, Christine, I guess the first question, when can we expect a deal?
CHRISTINE ROMANS, CNN CORRESPONDENT: Well, maybe today. I mean, frankly, now that the Supreme Court has paved the way for this thing to get done, the White House and Chrysler and Fiat, they want to get it done and they want to move on with this new Chrysler and get done with this.
So the deal with Fiat expected to close very shortly according to the companies. So I mean that could be, Heidi, today or tomorrow. So it's imminent.
COLLINS: Yes. All right. Well, what happens to Chrysler operations in the midst of all this?
ROMANS: Well, we know that they haven't been making cars. Most of their plants, most of their facilities shut down as soon as they filed for bankruptcy. So workers want to know when they're going to be able to get back to work, when things could get started up, maybe by the end of the month.
So hopefully that means that they're going to start their operations again, and also it means that there are unwanted assets that are not going to be a part of this new company and those will be shed here. Those are the eight factories and the workers there who will no longer be Chrysler employees and working for Chrysler and those 789 dealerships who have all been told they'll be severing the relationship.
You mentioned that dealership in Michigan.
COLLINS: Yes.
ROMANS: I mean that's really a compelling story, Heidi. How many communities rely on the dealer to sponsor the little league team, to sponsor the girl's volleyball team, for all of these other things? This is something that with so many -- 1 in 4 of these dealerships will be going away, will be severing its tie with Chrysler.
This is something that's going to change a lot of towns. So even though the bankruptcy looks like it's ending here and starting over with Fiat, you know, very shortly, there still are a lot of changes that are coming and a lot of pain that's going to be felt for people here as we go forward.
COLLINS: Yes. No question. What about the "Romans' Numeral"?
ROMANS: Eighteen months.
COLLINS: I mean good news or uplifting news there?
ROMANS: Depends on how you look at it.
COLLINS: OK.
ROMANS: 18 months. 18 months is our number here. This is a number I'll kind of give you a little bit more texture on the story of the day. 18 months, it has to do with the Chrysler bankruptcy and Fiat. This is when Chrysler is expected to start selling its first Fiat-based cars in about 18 months. So big changes.
That's looking to the future, I guess, Heidi.
COLLINS: Yes.
ROMANS: The future of this new Chrysler company, Chrysler with Fiat, in 18 months, smaller fuel-efficient cars available for American customers that are Fiat cars, Heidi.
COLLINS: Yes. All right. Well, we're watching it closely. Christine Romans from the CNN money team.
ROMANS: Sure.
COLLINS: Thank you.
ROMANS: You're welcome.
COLLINS: If you are getting ready to trade up from an older car to a newer one, you'll want to hear this. The House has passed a so- called cash for clunkers bill. The program aims to boost new car sales and get old gas guzzling vehicles off the streets.
Owners of those older cars would get instant vouchers of up to $4,500 toward the purchase of new wheels. The measure now goes to the Senate.
So will you cash in on this offer? Well, next hour, CNN personal finance editor Gerri Willis is going to take a closer look at the fine print of it because there always seems to be fine print. Right?
On the scene, at this hour, a French nuclear submarine equipped with high-tech sonar to help the search for the flight data recorders from Air France flight 447. Divers have recovered 41 bodies so far. 228 people were on board the flight when it disappeared off the coast of Brazil.
CNN international correspondent Paula Newton is live in London now with the very latest on this.
Hi there, Paula. How different is this particular French submarine from the other vessels that are already out there?
PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT: Well, it's a specialized equipment they have on board, plus the fact that piggybacking off that ship will be these robotic submarines, that if they do find someone -- something will be able to go down there and actually try and retrieve it.
But, again we've been told by investigators again and again finding those black boxes right now is still going to be a tall order.
I spoke to investigation officials this morning in France. They still do not believe they'll have more information any time soon on what caused the crash. Heidi, another link we are looking into now, as one French paper reporting, that there were two possible suspects, security risks, if you will, on that flight.
They are saying it's too early to tell if this had anything to do with flight 447 crashing into the Atlantic. They are right now only checking similarities in names, Heidi, and having a look at birth dates and trying to confirm who these people are.
Even if they were people of interest to security sources in France, that does not mean they had anything to do with bringing this airplane down.
Heidi, like with so many of the different causes being brought up in the last nine days...
COLLINS: Yes.
NEWTON: ... they can't rule anything in, but they're definitely not ruling anything out. And that includes terrorism. Heidi?
COLLINS: Yes. Because of the crash, though, we've heard some airlines are trying to replace the speed sensors on some of the Airbuses. Do you know anything more about that?
NEWTON: Yes. I mean this will be accelerated on many different airlines, they're accelerating. And it has to do with the actual manufacturing of them. They're trying to go towards one manufacturer and not the other. But again, what we keep hearing from aviation experts is that yes, these could have posed a problem and it certainly would have been a significant problem but that alone cannot explain why 447 went down.
COLLINS: Right.
NEWTON: Still most airlines now being pressured to change those and really taking no chances with those speed sensors.
COLLINS: Yes, operation of just being more safe than sorry, that's for sure. All right, Paula, we sure do appreciate that. Thanks so much, live from London this morning.
A five-star hotel in Pakistan is targeted by suicide bombers. It happened last night at the Pearl Continental Hotel in the northwest city of Peshawar. 17 people are dead. At least 64 wounded.
Surveillance video released today captured images of what could be the attackers invading the hotel grounds that they were set off -- where the car bomb was. The two United Nations employees are among the dead and officials say the bomb contained about 1,000 pounds of explosives.
Hip-hop blaring from car speakers, dancing in the streets. It's campaigning like you've never seen. In Iran. But can the reformists defeat the hardliner on Friday? CNN chief international correspondent Christiane Amanpour is in Tehran.
(BEGIN VIDEOTAPE)
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT (voice-over): This is democracy Tehran style. As the people take to the public square. On opposite street corners, supporters of the fundamentalist president Mahmoud Ahmadinejad face off against those of his main rival, reformist Mir Hussein Moussavi. And the traffic runs through them.
Boys and girls throw caution to the wind. In this country, this is daring. I asked these young people holding a sidewalk debate what makes this election different. "This is like a revolution," says Pega (ph). "People are excited about rescuing our country from the calamity it's in.
Even this Ahmadinejad supporter says the people are out in protest. "Most of the people voting for Moussavi are doing it just to get rid of Ahmadinejad," she says.
But the president still has staunch support, especially among the poor in the provinces, to whom he's doled out money, benefits and favors. "Honestly, we've never seen anyone as courageous as Ahmadinejad," says this supporter. "He's a true son of the revolution," adds another.
On the president's side of the street, many have bust in to counter the growing Moussavi crowds. There are scuffles. Organizers step in before it gets out of control. A young man shouts "death to liars" before making a break for it.
And on Moussavi's side of the street, there are more women, the crowd is younger. They talk of basic things. "We want freedom, a living wage, a better economy," says one. "We want relations with America. We want to be friends with all countries," says this one.
Another day of street politics, another day of gridlock. Before the country casts its vote.
Christiane Amanpour, CNN, Tehran.
(END VIDEOTAPE)
COLLINS: And Christiane Amanpour is actually joining us on the phone now from Tehran this morning.
So, Christiane, are there rallies that are going on right now? What's the situation around you?
(ON THE PHONE)
AMANPOUR: Absolutely, Heidi. There's a massive rally, a march through a great thoroughfare in the bottom of town here in Tehran which has got really a river of green running through it as people carry green posters, green flags, green head bands, all manner of green which is the color of Mir Hussein Moussavi, the main rival to Ahmadinejad in Friday's election.
And many are saying that scenes like this have not been seen since the revolution 30 years ago. The street is full of young people who are walking calmly, organized fashion towards what they call Freedom Square. And that is where they're going to be holding a big rally tonight and apparently also some supporters of the president are going to be there. So we are headed there. Again, as I say, another day of street politics and another day of gridlock. The whole town, at least many of the areas around these big rally sites, are -- is gridlocked and people are going in motorbikes, by foot and in cars as best they can. Heidi?
COLLINS: Yes, Christiane, I just want to be clear. We're showing some video while you were speaking about the rallies that are going on right now that was from a little bit earlier this morning.
So just curious about your perception. I mean you have covered this region for a very long time. Is this like anything you've ever witnessed before?
AMANPOUR: Not in terms of the outpouring on the street and the -- really the abandon with which people are expressing themselves and countering the opposing camp. It is really quite extraordinary. People here are likening it to even before the last round of reformist elections which was in 1997.
People are likening it to a sort of -- the period 30 years ago, although not quite as many people in the streets when millions came out at the beginning of the Islamic revolution 30 years ago.
But what's happening is that many, many people who said that they were not going to vote because they were tired of the system, they didn't think their vote counted, in just the last week have been energized. And by and large, it's the supporters of the opposition candidate.
COLLINS: Yes.
AMANPOUR: The leading opposition candidate, who are coming out, because they sense that this is now a tight race, and they want to get rid of the president who still has support strong though.
COLLINS: All right. Christiane Amanpour, appreciate that live reporting for us coming out of Tehran, Iran.
So what effects could all of this have on the United States? In just a few moments we're going to be talking to another insider about the state of Iran.
UNIDENTIFIED FEMALE: And we're looking at the threat for severe weather this afternoon. We'll come up and show you what happens for the afternoon forecast. We'll show you that right after this.
(COMMERCIAL BREAK)
COLLINS: Election Day in Iran just two days away now. From campaign rallies to televised debates, it appears democracy is at work there. But is it really?
Joining us from New York is Reza Aslan. He's a scholar of religions and the author of "No God but God: The Origin, Evolution and Future of Islam." Thanks so much for being with us. A lot to talk about here. I'm not sure if you just heard our report coming in from our correspondent Christiane Amanpour from Tehran, but really talking a lot about all of these rallies that are taking place this morning.
Who do you think is going to win on Friday? I mean could this conceivably be the end of Mahmoud Ahmadinejad?
REZA ASLAN, AUTHOR, "NO GOD BUT GOD": Well, I think that probably what we're going to see on Friday is the beginning of a run- off election between Ahmadinejad and former Prime Minister Moussavi.
We'll probably wait for another week until we finally know who actually wins this thing, but the truth is, Heidi, that if this is an election that stays on domestic issues, particularly issues of the economy, then it's going to be very hard for Ahmadinejad to pull through this time.
There's a sort of overwhelming support now for an opening up of the country to the international community. Some access to the free market economy. Because frankly, Iran's own economy is on the verge of utter collapse.
COLLINS: Yes. I mean, in fact, just yesterday we heard from former president, Akbar Hashemi Rafsanjani who wrote to the Ayatollah Khomeini in which he said this, and we'll it on the screen for you, "Millions of people were witness to Ahmadinejad's lies and distortions of the truth which were against religion, law, ethics and fairness, and were aimed at the achievements of our Islamic system."
So between this and then some of these statements from his opponents, which you mentioned, seems like everybody's kind of piling on the criticism of Ahmadinejad. Even if he wins, is he going to feel the pressure to maybe sort of reform some his views? And what would that matter in all of this?
ASLAN: Well, to be perfectly honest, I think he already has been reforming a little bit. Part of this has to do with the fact that I think the clerical regime in Iran recognizing that some his belligerent comments and his holocaust denial was...
COLLINS: Right.
ASLAN: Was really beginning to cause an enormous amount of strain on the Iranian economy. But what's really fascinating about that Rafsanjani article, of course, is in response to the presidential debate, the first live presidential debate that Iran has ever had in which Ahmadinejad tried to link Moussavi with Rafsanjani. Rafsanjani, not the most popular figure in Iran. He's a billionaire. Iran's only billionaire.
And this is -- really an attempt by Ahmadinejad to link the two of them together, very much in the same way that Obama tried to constantly link McCain to Bush.
COLLINS: I was just going to say that. ASLAN: And this is -- yes. And this is, of course, Rafsanjani fighting back in that regard.
I will say one thing that Ahmadinejad is right about, though, is that we are seeing this strange alliance between Rafsanjani's more centrist pragmatic approach and Moussavi's more liberal and reform- minded approach, and it is precisely in opposition to Ahmadinejad.
There is an enormous fear on both the left and the center that another four years of Ahmadinejad that Iran just simply cannot take it, that the international isolation may be too much.
COLLINS: Yes. Well, in talking about international relations, what does all of this mean regardless of who wins on Friday, for U.S.- Iranian relations, if there are any?
ASLAN: Well, let's be...
COLLINS: To talk about.
ASLAN: Let's be frank. The Obama administration is going to open up to Iran regardless of who wins this election. But it would certainly be a lot easier, not to mention more politically palatable in the United States if it weren't Ahmadinejad.
It would be a lot easier to, I think, deal with a new Iranian administration with a new American administration, both of them sort of starting fresh, starting from scratch, trying to move forward with some hope for rapprochement.
But either way, let's get this straight. Either way America's plan is to begin a process of dialogue and diplomacy with Iran because, quite frankly, there's really no other option at this point. You know Iran can't be ignored that the way the Bush administration did. It's just too large, it's too important right now.
COLLINS: Got to be following the rules, though, all of the international rules as well.
ASLAN: Yes.
COLLINS: So that is...
ASLAN: That's a lot easier.
COLLINS: Very, very quickly. Moussavi, you mentioned him a couple of times. What about him? Is he really that different than Ahmadinejad?
ASLAN: Well, he's different insofar as from a domestic policy issues, which is why we have so many younger Iranians as Christiane said, particularly women who perhaps sat out the last election, thought that really it doesn't matter who is president.
Either way, the machinery of government is what's going to move forward. And they found out over those last four years, turns out it's not the case. It actually does matter. So in that regard it's going to be much more important.
When it becomes to foreign policy, really there's not that much difference. It's just a different face and that is important.
COLLINS: Got it. Yes. All right, well, we will continue to watch certainly. Coming up on Friday, the vote.
Reza Aslan, sure do appreciate your time. Thank you.
ASLAN: My pleasure.
COLLINS: There are three powerful antipsychotic drugs with serious side effects. Should they be prescribed for children with bipolar disorder? Our Dr. Sanjay Gupta takes a look at it coming up.
(COMMERCIAL BREAK)
COLLINS: Three powerful drugs for bipolar disorder and schizophrenia. They're called atypical antipsychotics. An FDA panel votes today on whether to approve those drugs for kids. The decision is a controversial one. That's because the list of risks associated with these drugs is long. Weight gain, high blood sugar, type 2 diabetes, things like that.
We're joined now by our chief medical correspondent Dr. Sanjay Gupta on this.
So, Sanjay, when you rattle off the list of potential side effects, why would the FDA even consider potentially allowing these drugs to be prescribed to kids?
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, you know, it's like most things in medicine, Heidi. It's a risk-benefit analysis. These types of discussions take place before the approval of lots of different classes of drugs but this is one of the more emotionally charged ones because of some of the things you're mentioning.
How do you test for these drugs in kids? Have they been tested adequately? And how do you balance those risks and benefits? The drugs that they're talking about today specifically, Zyprexa, Seroquel, Geodon.
Let me just go through some of those specific side effects that you mentioned. Weight gain, high blood pressure, type 2 diabetes, sudden cardiac death in rare situations.
Heidi, the weight gain that we're talking about here is not just simple -- small weight gain. We're talking up to 40 pounds in a couple of months. It seems to interfere with an area of the brain that's responsible for our ability to feel full. And that's a real problem. They can develop diabetes as a result.
What I thought was also a very interesting issue that's coming up as well is, are these drugs being prescribed for the right reasons?
COLLINS: Yes.
GUPTA: Take a look at this graphic over here behind me. I don't think you've seen these numbers. But only 37 percent of the time are they prescribed for bipolar disorder and schizophrenia. There's all these other things that they're prescribed for more often. 29 percent for ADHD, 13.8 percent for something that's non-psychiatric altogether. Autism. Tourette's syndrome.
These are issues as well, Heidi, as far as are they being prescribed for the right reasons and are they able to manage some of those side effects, and monitor them?
COLLINS: Yes, well, that's just it. I mean when you talk about all this, it seems pretty striking that the number of kids who are getting these antipsychotics aren't even bipolar or schizophrenic. I mean do doctors expect those numbers to go up if the FDA approves these drugs?
GUPTA: Most likely. I mean they've gone up over the years, almost 40 fold over the last decade. And if the FDA approves them, they're likely to have those numbers go up even further. Lots of interest in this on the blogosphere, questions coming on our Twitter. What kind of drugs can we use now to treat bipolar and schizophrenia?
There are drugs that can be used now including Abilify and Risperdal. It could be FDA's vote today. In fact teens are already taking these drugs. Heidi, as you know, a lot of these are already prescribed off-label. So likely it won't affect people currently taking it but this is going to be a issue is how these drugs move forward.
COLLINS: All right. Well, we will stay updated through you. Appreciate that, our chief medical correspondent, Dr. Sanjay Gupta, thank you.
GUPTA: You got it. Thank you.
COLLINS: On Wall Street now, prices across the board are rising this morning. It's not just stocks, it's oil we're talking about, too.
Susan Lisovicz is at the New York Stock Exchange now with a look at the trading day.
Good morning to you, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning, Heidi. Yes, it's one of the consequences of an improving scenario for the economy. We are set for a higher open for stocks and we are seeing higher prices for crude. Right now trading above $71 a barrel.
Investors jumping back into the oil market because they're betting the economy will improve and boost demand.
The outlook for Chrysler is improving. It's set to exit out of bankruptcy. This as the Supreme Court looks at temporary stay that would have halted the sale of Chrysler's assets to Fiat. The stay was originally granted because of an appeal brought by a group of Indiana pension funds.
Meanwhile the outlook for the "Boston Globe" is in question. The "globe's" owner, "The New York Times" company, has hired Goldman Sachs to manage the possible sale of the 137-year-old newspaper. The "Globe" says it has two potential anonymous buyers.
The government planning to change its rules on executive pay. The "Wall Street Journal" says the Obama administration will announce today a plan to hire a pay czar and drop the salary cap on companies receiving bailout money.
Finally, Home Depot boosting its full-year earnings guidance. This comes just weeks after rival Lowe's did the same thing. Home Depot shares right now are up 3 percent.
And overall, yes, we're seeing some nice gains. But three major averages up 0.5 percent.
Did you notice who rang the opening bell, Heidi Collins?
COLLINS: Yes. Some of the hot rods, right?
LISOVICZ: That's right. The National Hot Rod Association, including seven of what they call Full Throttle Drag Racing Series drivers.
COLLINS: Wow.
LISOVICZ: And some of them were women. They feel the need for speed, Heidi.
COLLINS: I love that stuff. Danica Patrick, too. I mean, obviously, different type of car, second place in the Indy.
LISOVICZ: Yes, there you go!
COLLINS: All right. Susan Lisovicz, we'll check back later on -- to the positive right now, about 70 points or so on the Dow Jones Industrial Averages.
We want to give you this story now -- a gun battle on a Mexican street.
But this battlefield is not a dusty village. It is Acapulco. A tourist destination caught in the crossfire. Is this a sign of things to come?
(COMMERCIAL BREAK)
COLLINS: Right now, we want to take you over to our blog for a moment, because there's something going on in the Brazilian custody case that we want to tell you about today. And we'd like to hear from you, too, if possible. Of course, the international custody battle that we have been talking about involving that little boy from New Jersey and his father. Again, there is possibly going to be a decision today in this case. They're back in court today.
We've got a lot of comments on this. It's been five years since Sean Goldman has seen his father, David Goldman. We've got about 152 comments on here.
So, later on in the show, we're going to be reading some more of your comments here -- because again, we've gotten so many in, we want to make sure that you're hearing some of them. Once again, you go to our blog on this: CNN.com/Newsroom. Click on my name: Heidi. Check it out.
We're back in a moment.
(COMMERCIAL BREAK)
COLLINS: Some headlines making news on the Hill today. Health care is front and center in the House. This morning, a subcommittee will hold a hearing, taking a look at the single-payer health care option. That is where the government or an entity similar to Medicare administers health care. That hearing gets under way in about an hour from now.
And the Senate could vote today on a bill that would give the FDA sweeping controls other tobacco products. The measure, for the first time, would give the FDA power to regulate the sale, manufacturing and marketing of tobacco. The House has passed a similar bill and President Obama supports the legislation.
President Obama's Supreme Court nominee is making more courtesy calls on the Hill today. Judge Sonia Sotomayor is meeting with senators who will vote on her nomination. Senate Democrats are hoping a vote on her nomination will take place by their summer recess. But Republican Senator John Thune told CNN Radio it might not happen until September.
The drug wars in Mexico. The death toll is rising. The violence is spreading. One recent battlefield: the tourism hotspot of Acapulco. And experts warn tourists will increasingly get caught in the crossfire.
CNN's Ed Lavandera with the latest.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Burst of gunfire echoed through the darkness of Mexico's streets. It's the sound of a drug war, but this time, it's different.
RUSTY FLEMIN, AUTHOR, "DRUG WARS": You are seeing a new level of the war on drugs in Mexico. And now, of course, you've got an administration that has taken the war directly to these guys. You're going to start seeing them in places that we never thought they existed.
LAVANDERA: But it seems no place is immune. This gun battle took place in the tourist Mecca of Acapulco -- a place largely untouched by drug violence until now.
(GUN FIRE)
LAVANDERA: The battle started over the weekend when Mexican groups raided a suspected safe house of the Beltran Leyva drug cartel. When the smoke cleared, more than 3,000 shots had been fired, 50 grenades exploded, and 17 people killed -- including two soldiers and two innocent bystanders. Terrified tourists fled from the area.
Inside the gated house where the gunmen were hold up, soldiers found four handcuffed shirtless men who claimed to be kidnapped state police officers.
And then yesterday -- another rampage of gunfire and explosions. Two police stations were riddled with bullets and pounded with grenades in a coordinated near-simultaneous attack. Three policemen were killed and one wounded.
Reports say state officials were investigating whether it was a retaliatory attack while Mexican soldiers in trucks and in helicopters kept watch over a nervous resort town.
Some 2,300 people have been killed just this year in Mexico's drug violence. The latest of nearly 11,000 victims since the nation's president unleashed military forces against drug traffickers in December of 2006. The U.S. State Department has a travel alert, warning Americans of the increased levels of violence.
The Mexican government says its resort towns are safe but Fleming disagrees, and says open warfare in places like Acapulco is just beginning.
FLEMING: All of those drugs have to come in shipping lanes. And those are shipping ports. So, of course, they've got a presence there. And, of course, you're going to see, as, you know, these guys -- their operations become uncovered by the military and military begins to pursue them -- you're going to see more of this kind of violence.
LAVANDERA: A new front in the war on drugs, another town gripped with fear.
Ed Lavandera, CNN, Mexico City.
(END VIDEOTAPE)
COLLINS: Recovering bodies. Authorities say the body of one person killed in an explosion at a North Carolina food plant has now been recovered. Search teams will try to enter the ConAgra plant near Raleigh today, hoping to reach another body. A third person is still unaccounted for. The plant which makes the Slim Jim meat snacks was ripped apart in an explosion yesterday with 300 workers inside. Heavy thunderstorms forced crews to end their search yesterday.
(MUSIC)
COLLINS: Take a moment to get over to the severe weather now. Karen Maginnis is joining us today.
Hi there, Karen. A lot of rain to be talking about yet again today, huh?
KAREN MAGINNIS, CNN METEOROLOGIST: Yes. As a matter of fact, I was watching this area right down here tucked around Carlsbad, Hobbs, also in Odessa. And now, a severe thunderstorm watch has been issued across this region. It was looking ominous just a few minutes ago and, in fact, the Storm Prediction Center now says, "Well, we could see some thunderstorms rumbling around across that region as well."
Well, sliding on to the Midwest and towards the Ohio River Valley, some pretty good thunderstorms rumbling around here. As you can see, no watches or warnings have been issued, but this is all part of a stationary weather system that's just kind of flagging right along the Central United States. And this is where the bulk of that moisture's been found for the past week or so.
All right. In the next 48 hours, kind of our bull's eye will be in this area from Kansas City towards St. Louis and towards Springfield. Take a look at this zone. We're expecting between about three to six inches of rainfall and that is because of that very stubborn frontal system that just does not want to seem to go away.
Well, in our forecast, this is what we're anticipating -- that frontal boundary, quasi-stationary, will still produce those showers and thunderstorms all the way from Cleveland into Wheeling, West Virginia, extending on down towards Nashville. Nashville, you're just about in line for some of those thunderstorms in the next few minutes or so. Then, for Dallas, they could really use some of the wet weather. They saw some pretty nice spring time rainfall, but now, it looks like it's easing off.
Live picture out of Atlanta. It will be hazy today, temperature around 90.
Heidi, back to you.
COLLINS: All right. Karen, we do appreciate that. Thank you.
Get a haircut, save a sea otter. In Chico, California, a hair salon is sweeping up those clippings and donating them. A nonprofit group takes the human hair and weaves it into mats that are then used to soak up oil spills.
One pound of hair can actually absorb a quart of oil. Did you know that? And the mats can be reused up to 100 times.
Murder suspect speaks from jail. The man accused of killing a late-term abortion provider sits down for a CNN interview. What he says about the clinic's closing.
(COMMERCIAL BREAK)
COLLINS: The suspect in a killing of a Kansas abortion provider says the closing of his clinic is a victory for all the unborn children. In a jailhouse interview with CNN, Scott Roeder did not admit to killing Dr. George Tiller, but he did react to a possible conviction. Tiller was one of the few doctors in the U.S. who performs late-term abortions as well as regular abortions.
Our Ted Rowlands spoke with Roeder.
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (on camera): I was allowed 30 minutes inside the jail here in Wichita to talk to Scott Roeder. It was an interview where there was a plate of glass separating us. We talked over a phone line. There were no recording devices allowed. So, it was just myself, a pad of paper and a pen.
At one point, Roeder said that he felt good because he was getting, quote, "encouraging letters" from people around the country here in his mail at the jail. He also talked about the death of Dr. George Tiller.
(voice-over): Dressed in the same type of maroon inmate outfit, he wore here at his first court appearance, Roeder said he didn't want to incriminate himself and didn't answer specific questions about Tiller's murder. But he did say, if in the end, he was convicted, quote, "The entire motive was the defense of the unborn."
When asked what he thought about the fact that Dr. Tiller is dead, Roeder said, quote, "The fact that Tiller's clinic is closed is a victory for all the unborn children. No more slicing and dicing of the unborn child in the mother's womb, no more needles of poison into the baby's heart."
Roeder said reports from his ex-wife and others that he was mentally ill, suffering from schizophrenia were, quote, "completely false." He refused to comment on what, if anything, he said to Dr. Tiller that day in Wichita and said he feared the possibility that he may face federal charges, in addition to the murder charge he's already facing in Kansas.
Afterward, we asked Tiller family attorney Dan Monnat for reaction.
DAN MONNAT, TILLER FAMILY ATTORNEY: Personally, I'm reluctant to, in any way, legitimize Mr. Roeder or anything he stands for by directly responding to his statements. Actually, I'm content to let law enforcement determine whether this defendant merits any attention.
ROWLANDS (on camera): Roeder did the interview with us without the consent of his attorney. At no point did he give any sense of remorse, and at no point did he say he was innocent.
Ted Rowlands, CNN, Wichita, Kansas.
(END VIDEOTAPE)
COLLINS: A former House speaker does not mince words as he takes on President Obama. (BEGIN VIDEO CLIP)
NEWT GINGRICH (R), FMR. HOUSE SPEAKER: So he can't turn around now and say, "Oh, gosh, George W. Bush made me have a stimulus plan." This is his plan, and what happened?
(END VIDEO CLIP)
COLLINS: What else was said and not said at one of the biggest GOP fundraisers of the year?
(COMMERCIAL BREAK)
COLLINS: Two thousand of the party's faithful came, checkbooks in hand, and they raised nearly $14.5 million for congressional Republicans. What do they get in return?
Here's our senior political correspondent Candy Crowley.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): After several days of Palin party drama, invitations, dis-invitations, would she come? She did. Would she speak? She didn't. But the former speaker spoke and gave a shout-out.
GINGRICH: I felt looking at John McCain and Sarah Palin, this country would have been amazingly better off had they been in the White House.
(APPLAUSE)
CROWLEY: Also helping out at the GOP fundraiser, actor Jon Voight, introduced as one of the few Hollywood-types brave enough to be a Republican. Voight took to the stage, applauding the voices of dissent.
JON VOIGHT, ACTOR: Let's give thanks to them for not giving up and staying the course to bring an end to this false prophet, Obama.
(APPLAUSE)
CROWLEY: It was the Senate and House Republicans' biggest fundraiser of the year, a year of living unanimously, as a minority party with little to do but speak out -- something Gingrich does well.
GINGRICH: Reagan used his rhetorical skills to shine light on truths and fundamental facts. Obama uses his rhetorical skills to hide from fundamental facts.
CROWLEY: Along with the critic of the Obama administration, Gingrich offered the faithful a road map to majority status. Chiming in on a recent debate over who's a real Republican, Gingrich preached inclusiveness.
GINGRICH: I am happy that Dick Cheney is Republican. I am also happy that Collin Powell is a Republican.
(LAUGHTER)
CROWLEY: Long considered an idea man for the party and a presidential possibility by some, Gingrich advised the GOP to stick with fundamental principles: Lower taxes, less government intrusion, the defense of individualism.
It was vintage Newt, a reasoned defense of Republican policy, a few history lessons, and big blast at the administration. There was this on the economy.
GINGRICH: Which means their budget is already wrecked because we're going to have higher unemployment, greater government expenses and less revenue than they projected, because their plan has already failed.
(APPLAUSE)
CROWLEY: And this on foreign policy.
GINGRICH: Let me be clear: I am not a citizen of the world. I think the entire concept is intellectual nonsense and stunningly dangerous.
(APPLAUSE)
CROWLEY: It's not as new or electric as Sarah Palin, but Gingrich still delivers.
(END VIDEOTAPE)
COLLINS: The money raised goes to the GOP House and Senate campaign committees that will be dividing up among various candidates as Republicans try to regain control of Congress next year.
There's an awful lot going on this morning, and CNN crews are in place now to bring it to you. Let's go ahead and begin with Barbara Starr at the Pentagon.
Hi, Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning, Heidi. The rhetoric between North Korea and the U.S. is only getting hotter. We'll have more at the top of the hour.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: I'm Gerri Willis. Uncle Sam wants to put you in a new car, a so called "cash for clunkers" bill just passed by the House provides money to trade in the gas guzzler for a new, more efficient car. I have more details at the top of the hour.
MAGINNIS: I'm Karen Maginnis. And we're having to look at some thunderstorms, strong storms erupting all the way from the mid- Atlantic into the Southwest. I have more details at the top of the hour. COLLINS: All right. Thanks so much, everybody.
We are also going to introduce you to a little robot with big potential for cancer patients.
(COMMERCIAL BREAK)
COLLINS: All right. Some news that's interesting here in the CNN NEWSROOM. We want to make sure we get them out to you directly.
We are understanding that Chrysler and the Italian carmaker, Fiat, had made it official now, they are joined together.
We also have the name of the individual who actually become the chairman of this new Chrysler, if you will. We have a picture here. I want to go over to the "Heidi Mac," as we're calling. I don't know if that's legal or not.
But, this is the gentleman -- C. Robert Kidder, that, we are understanding, to become the chairman of Chrysler Group. He's got -- apparently, according to this right here that we found on the Web -- about 40 years of experience; right now, serves on Morgan Stanley's board, Schering-Plough Corporation and several other corporations. He had previously been chairman and CEO of Duracell and Borden Chemicals.
So, again, we've learned a little bit more about him.
We just want to get that news out to you as soon as we get it in here. That Chrysler and Italian carmaker Fiat have actually made it officially now. So, it is a done deal.
Meanwhile, I want to get back to the news now as well.
You can get a good deal at Goodwill. Listen to this, two prize paintings that were unanimously donated to a Goodwill thrift store in Toronto are now been sold. They pitched 134,000 bucks on the auction block.
The charity has said all the money will go back into its programs to help people in need. Now, the paintings were placed in a donation bin last fall. A lucky fine there.
Now, for a story of courage and sheer determination. After a stray bullet shredded Martrell Stevens' spine and paralyzed him, the 4-year-old seemed confine to a wheelchair forever.
But Cheryl Burton from our affiliate WLS tells us how just one year later, he'd beat all the odds and stood tall on graduation day.
(BEGIN VIDEOTAPE)
CHERYL BURTON, WLS REPORTER (voice-over): The auditorium was standing room-only at Jane A. Neal Elementary School. Five year old Martrell Stevens sat in his wheelchair and watched closely the kindergarten graduation proceedings. It was an emotional moment when the young boy got up and walked across the stage, using a walker, with the help of his therapist, to receive his diploma. He will now be a first grader.
What does it feel like to walk across that stage?
MARTRELL STEVENS, SHOOTING VICTIM: It wasn't hard. I'm going to be smart and I'm going to graduate again to the second grade.
ANTWOAN STEVENS, MARTRELL STEVENS' STEPFATHER: We are so happy that he made it. He got to walk across the stage to get his diploma. Big smile on his face, the family is happy. Everyday he says, "I'm going to walk, I'm going to walk." And with that mindset and the strength that he has.
BURTON: Last year, Martrell's mother, LaKeesha Rucker, fought back the tears as she walked her son shot in the 6400 block of South Bishop Street. Rucker and her son were in a car when a gunman started shooting at them, aiming at her brother-in-law. He shot the boy in the torso.
LAKEESHA RUCKER, MARTRELL STEVENS' MOTHER: I'm very grateful that my son was able to walk up to the stage and just to let him know to keep up the good work that he has. (INAUDIBLE) on the stage to walk across, this just the beginning right here.
BURTON: In order to walk across the stage, Martrell has gone through extensive physical therapy. He played sports and lost weight.
Martrell has this message for all.
M. STEVENS: Stop the war (ph).
UNIDENTIFIED MALE: Stop the shooting.
M. STEVENS: Stop the shooting.
UNIDENTIFIED MALE: Stop the killing.
M. STEVENS: Stop the killing.
UNIDENTIFIED MALE: Because I want to grow up.
M. STEVENS: Because I want to grow up.
BURTON: Martrell got his wish to ride in a limo and off to celebrate, courtesy of Chi-town Limo Service.
(END VIDEOTAPE)
COLLINS: Illinois police officers say no one has been charged from Martrell's shooting. The gunman is still unknown.
