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Obama To Hold Town Hall Meeting on Health Care Reform; Lawyers Could File Jackson's Will in California Courtroom Today; Standoff Brewing in Honduras; Cash-Strapped States Face Budget Deadlines; Potential New FDA Guidelines for Usage of Products with Acetaminophen; New Cash for Clunkers Law Goes Into Effect Today; Jackson's Posthumous Album Sales Break New Record; Defense Secretary Robert Gates Considers Modifications on "Don't Ask, Don't Tell"; Private Pilots May Face Tough New Security Measures
Aired July 01, 2009 - 09:57 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MELISSA LONG, CNN ANCHOR: Here's a look at some of the other stories happening right now. The Arizona House has narrowly rejected a bill that would have criminalized any illegal immigrants living in the state. The House voted 26-15 in favor, but that was five votes short of the Arizona House requirement for full passage. The bill would have made Arizona the only state to criminalize illegal immigrants.
NASA is now checking up on some of the repairs completed on the space shuttle Endeavour. Right now, engineers are looking at the fuel tanks for leaks. A hydrogen gas leak prevented the shuttle's launch, that was just last week. If the leaks are fixed, Endeavour could lift off on the eleventh of July.
And the death toll and a massive car bombing in northern Iraq yesterday now stands at 35. The blast wounded 95 other people and destroyed 17 buildings in a commercial section of Kirkuk. The bombing came on the same day that U.S. troops pulled out of major Iraqi towns and cities.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Now's the time for us to finally do something about health care. We have been talking about it enough, we have had commissions, we have had white papers, we have had blue ribbons. We have talked about it and talked about it, and now it's time to act.
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SEN. JUDD GREGG (R), NEW HAMPSHIRE: This bill is headed to a $3 trillion to $4 trillion price tag unpaid for, added to the debt event. And there's no reason to aggravate that with another $80 billion of basically walking around money. It just doesn't make any sense at all.
MELISSA LONG, CNN ANCHOR: Hearing from the president, hearing from lawmakers about health care reform and today it's your turn, President Obama is holding an on-line town hall meeting a little over from three hours from now and you'll be able to send your questions in through Facebook, Youtube and Twitter and we're going to have more on the town hall in a moment but first our Dan Lothian looks that status of health care reform.
(BEGIN VIDEOTAPE)
DAN LOTHIAN, CNN CORRESPONDENT (voice-over): When it comes to health care reform, the Obama administration says there's no time like now.
PRES. BARACK OBAMA, UNITED STATES: After decades of inaction, we have finally decided to fix what's broken by health care in America.
LOTHIAN: That pledge gets good applause in Green Bay, Wisconsin, but on Capitol Hill, the devil is in the details. Mr. Obama is pushing a government-sponsored option. Republicans and some Democrats say it's bad for private insurers, even though the White House claims it would make them more disciplined and boost competition.
There's a non-profit co-op plan and other ideas being floated to provide affordable health insurance for all Americans. Whatever is settled on, the price tag is steep, roughly $1 trillion. Raising taxes on the middle class to pay for it, once a no-no on the campaign trail...
OBAMA: Not any of your taxes.
LOTHIAN: ... is now a possibility. But spokesman Robert Gibbs is projecting a positive tone. Saying the administration "feels good about the progress being made on health care reforms."
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: Everybody is still at the table, everybody is still talking to each other in an effort to move health care reform forward, to do so in a way that's consistent with our principals and our value.
(END VIDEOTAPE)
LONG: White House correspondent Dan Lothian joins us live from the White House. And we know that the White House has done a series of these town halls recently, it's focusing on health care. So why is this one any different?
LOTHIAN: That's right. In fact, they had one as recently as last week. But what they say is different about this one, it's so interactive and the most interactive to date. You talked about it earlier, Twitter, Youtube, also Facebook and in fact, the president, himself, according to the White House made a video that was posted on Youtube trying to solicit some of these questions, the questions that they received. Some of them will be asked at the town hall today.
LONG: Well, you mentioned again, the interactivity, of course. It's an opportunity for the president and his administration to connect with voters, but also to connect with those on Capitol Hill. LOTHIAN: It really is. I mean, when you talked to senior administration officials, they say the focus of this really is to get the voice of the public, to get them involved in the debate now and the process now not after the fact but one administration official did acknowledge that, you know, they hope that Capitol Hill is paying attention. They want lawmakers to hear the compelling stories of people who don't have health insurance and how difficult it has been for them or those who do have health insurance, but are still struggling to pay all their bills because they've had a lot of these catastrophic illnesses. Those are the kind of things that could come up at a town hall meeting and they really hope that Capitol Hill is paying attention.
LONG: Dan Lothian at the White House. Dan, thanks much.
LOTHIAN: OK.
LONG: President Obama still has to convince many Americans about his health care plan. The latest CNN/Opinion Research Corporation poll finds a slim majority, 51 percent support the president's plan, but health care is still a critical issue for almost all Americans. 95 percent of those polled favor either a great deal of reform or just some reform.
Again, we're talking about house care reform on our blog this morning. The question we pose, what worries you most about President Obama's plan? We hope you'll go online and engage in a conversation with us. Go to cnn.com/newsroom and click on Heidi's picture. I'm in today for Heidi, and post your thoughts. We'd love to hear from you.
There are new developments to make sure you're aware of this morning about the legacy of Michael Jackson as it takes shape. Here's what we know. Just a couple hours from now, lawyers could file his will in a California courtroom. According to various reports, the seven-year-old documents contains no bombshell, and that his mother gets custody of the children. We have also learned that a public viewing is now being planned for Jackson's fans. A law enforcement official tells CNN it will be held at his Neverland Ranch on Friday.
So, will that provide some closure and maybe tamp down the frenzy? Not likely, according to an attorney for the Jackson family.
(BEGIN VIDEO CLIP)
BURT LEVITCH, JACKSON FAMILY ATTORNEY: I'm not sure how long the drama will last. Obviously, Michael Jackson is beyond an iconic figure and his life and his death are of importance to the world. And in that sense, I think there will be media attention on this set of issues for a long time. In terms of the complexity of the estate administration, you need to keep in mind that to the best of our knowledge his business dealings were quite complex and it will take quite a long time to sort out all of those issues.
(END VIDEO CLIP)
LONG: There has been a rush of activity at Jackson's Neverland Ranch. Construction equipment, workers are streaming in, questions piling up, as well. CNN's Kara Finnstrom is just outside the gates and she joins us now live from California. Good morning, Kara.
KARA FINNSTROM, CNN CORRESPONDENT: Good morning, Melissa. This part of the story still very much evolving. And you mentioned all that activity. I want to give you a look at the two-lane country road leading into Neverland Ranch. You can see the throng of media that has arrived here all in anticipation of memorial service for Jackson this weekend.
On the record now, the Los Angeles Police Department saying that they and members of the California State Highway Patrol did meet with members of Jackson's family yesterday discussing plans related to memorial services for Jackson. However, they are refusing to share any of the specific details they say until those plans are firmed up.
Now, as you mentioned, Melissa, CNN has been reporting that a law enforcement source has shared with CNN that yesterday law enforcement officials did develop plans to actually have a motorcade that will bring Michael Jackson's body from the Los Angeles area up here to the Neverland Ranch for public viewing, as well as a private memorial service for the family. The family itself has not made any comments about their plans.
Obviously, this is a huge, logistical feat. I mean, we heard in the last 24 hours, a lot of safety concerns raised by the community here, concerns about the traffic. You know, about the huge crowds and then you've also got the feat of trying to get all these different law enforcement agencies trying to work together. So there may be some tweaking to the plans under way, but, still, CNN does anticipate to see some activity here this weekend with some sort of memorial services held for Michael Jackson and, Melissa, we're just going to keep bringing you the details as we get them.
LONG: You showed us the picture of all the live satellite trucks for the news media. That is a sprawling estate, what's in the area around it?
FINNSTROM: You know, there are a lot of ranches around here. You know, just kind of big, sprawling grasslands and not far from me, I can see some cattle. So, you know, this is a really remote, grassy area. There are also a lot of vine lands around here, you know, there are a lot of wineries and, you know, so it's really a very, kind of isolated, very quiet place and many people in this community don't want to see, you know, the big crowds come here. I can tell you they remember back in 1991 when Elizabeth Taylor was married here, they talk about, you know, the helicopters that were overhead, all the looky lous, the fans that came out and said, you know, it created quite a bit of problems back then. This, they say, of course, would be a completely different scale.
LONG: Oh, I'm sure. All right. Kara Finnstrom just outside the gates of the Neverland Ranch. Thank you, Kara.
And we continue to focus on the pop icon for sale. Memories of Michael Jackson. Is it time to dust off that old LP or break out a single white glove? We're going to look at the skyrocketing prices of those old keepsakes and show you also some memorabilia that will have some die-hard fans drooling.
This Saturday, this Sunday night, CNN's Don Lemon takes an in- depth look at Michael Jackson's life and legacy, his childhood, his music, his finances, influence. Don't miss the CNN presents special "Michael Jackson, the Man in the Mirror." Again, this weekend at 8:00 Eastern, only on CNN.
Family and friends are saying good-bye to Farrah Fawcett. The actress' long-time companion, Ryan O'Neal, was among the pallbearers for yesterday's private funeral at a Los Angeles church in downtown L.A.. Fawcett's Charlie's Angels co-star Kate Jackson also attending, as did Fawcett's son, Redmond O'Neal, who was let out of jail for that service. Fawcett died Thursday after a three-year battle with cancer. She was 62.
A celebration of Ed McMahon's life taking place tonight in Los Angeles. The funeral service will not be televised. McMahon, of course, was Johnny Carson's sidekick on NBC's "Tonight Show" for three decades. He died last week at the age of 86.
Quite a fright for homeowners in central Florida. Tornado winds knocked over trees yesterday. One fell right between those two homes. The other across the street, no one was hurt, that's the good news. The storm did bring a good bit of rain, an inch or even more in many spots.
Let's bring in Rob Marciano and more on the storms that took place there and more on the storms on the horizon. People don't want to hear about storms as we inch closer to the fourth though.
ROB MARCIANO, AMS METEOROLOGIST: No. And they want things cleared out, but we're in kind of a quieter trend although Tampa and Hillsborough County with pictures you saw certainly indicate that that area has seen some rough weather. That was actually a very, very small tornado with some of that damage. And they'll probably see more in the way of thunderstorms today and likely some heavy rain.
Cool air trying to drip down across the western part of the Great Lakes into the northeast, and the northeast will see a fair amount of showers because of that and we're already seeing that. Everything filtering around, this area of low pressure kind of rotating in. So if it's rotating in from Canada, you know, it's on the cool side. So temperatures will be, anywhere from 10 to 15 degrees and in some cases 20 degrees below average for daytime highs across the western Great Lakes and just more unstable air expected across the northeast because of that low rotating things in.
Eastern parts of New Hampshire and eastern parts of Rhode Island and Massachusetts seeing some showers. They're starting to wind down. Here you go, Tampa, certainly seeing more in the way of thunderstorms this morning and that will last through the afternoon. So we have a flash flood watch that's in effect for another one to two inches of rainfall, that is possible in that particular area. As far as daytime highs are concerned, looking at temps to be, look at that. 63 in Chicago. My goodness.
LONG: Chilly.
MARCIANO: Seventy-eight degrees in New York City and 85 degrees in D.C.. I want to show you this. A couple of earthquakes this morning. One near Crete, Greece, just off shore there about 6.4 magnitude at about 10 kilometers deep. So there was some shaking felt in Athens and actually across the river of the Mediterranean in Africa.
And over to Seattle we go, where 3.7 magnitude earthquake was found just northwest of Seattle across the Puget Sound area. No word of how many people felt that but certainly at that magnitude, wouldn't do a whole lot of damage. A little shake, rattle and roll and a little bit of thunderstorm across Florida. And we'll try to keep things quiet for the fourth of July weekend. Look for that exclusive graphic, Melissa, with the fireworks and the flags. We'll probably work on that and debut it for you tomorrow.
LONG: When are you going to debut that for me? I'm sorry.
MARCIANO: Likely tomorrow.
LONG: I have to wait until tomorrow, Rob?
MARCIANO: The anticipation is building.
LONG: Building. Thank you.
MARCIANO: Ratings gold.
LONG: I know. Looking forward to it. All right. Thank you.
MARCIANO: See you.
LONG: State budgets in crisis. Agonizing decisions on the horizon. The recession hitting home, again, for millions of Americans.
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LONG: Search crews may have located the flight data recorder from the Yemenia Airways jet that went down in the Indian Ocean, but a French foreign ministry official says so far the devices are inaccessible. 153 people were on board and the father of the lone survivor, a 13-year-old girl says she will be OK. The Airbus 310 crashed overnight on Monday on a flight from Yemen to the island nation of Comoros.
Now crews have expanded their search efforts for more bodies and more wreckage. It is the second deadly crash of an Airbus jet in one month.
The death toll rising from a bombing in northern Iraq, 35 people now dead in Kirkuk, nearly 100 people wounded. A car loaded with explosives detonated yesterday in a busy Kurdish neighborhood. About 20 shacks and homes were destroyed. That attack happened the very same day U.S. troops completed their pullback from Iraqi cities.
A standoff in the making in Honduras. The United Nations and the Organization of American States, the OAS, are demanding military coup leaders restore the power of President Jose Manuel Zelaya. The OAS is giving the coup leaders three days to do it, or risk Honduras being suspended from the group.
But the new regime in Honduras said President Zelaya has committed crimes against the constitution and will be arrested if he returns. Now there is word that Zelaya will delay his trip home from Thursday until Saturday.
Iran's government says the presidential election is over, done, it's a wrap. But the candidates who lost are saying, not so fast. CNN's Reza Sayah just back from Tehran, now at our Iran desk to tell us what is the latest this morning.
REZA SAYAH, CNN CORRESPONDENT: Yes, Melissa, this aggressive, often brutal crackdown on the part of government has really been successful in snuffing out these mass street protests and a lot of the protesters that we've seen over the past couple of weeks are eager to see what their opposition leaders will do now. Will they throw in the towel, and there are all sorts of indications today that many of them are saying, not so fast.
This just in to the Associated Press and the Iran desk. Iran's embattled opposition leader Mir Hossein Mousavi has branded last month's presidential elections illegitimate and has demanded the regime release all political prisoners. Some strong words there by Mir Hossein Mousavi. Also another candidate, Mehdi Karubi, another reformist candidate who finished third in the elections, he came out today and really blasted the elections process and the crackdown that followed.
Here's what Mr. Karubi had to say. "I see these and other actions as the foundation of the annulment of the elections and I will not recognize the legitimacy of this government which has resulted from this process and will not participate in any of its processes, in any way." It doesn't end there. The former reformist president Mohammad Khatami also coming out, again, with some strong words.
According to reformist paper, former President Khatami "saying the current militarization of the security environment must change and society must be taken towards calm and believe that all doors are not yet closed. Of course, the government came out yesterday and said, all doors all are closed." The Guardian Council, the top legislative body certifying the election result saying Mahmoud Ahmadinejad has won the elections. He is scheduled to start his term on July 26 with a swearing in ceremony, but, as you see today, some opposition leaders remain defiant in Iran. They're not throwing in the towel yet. Melissa.
LONG: Reza Sayah from the Iran desk. Reza, thank you.
General Motors back in court today as it seeks judge's approval to sell-off much of its holdings. The troubled automaker says a quick deal will allow it to become the new GM and emerge swiftly from bankruptcy protection. Bond holders and some consumer groups have objected to the plan, they say, creating a new company would erase old debts and make existing shares of GM stock worthless.
In California, the budget crisis gets even worse. The state will now have to issue IOUs after lawmakers fail to approve a stop gap plan before a midnight deadline. That's when the state's new fiscal year got under way without a budget to cover the operating expenses. Lawmakers are at odds in how to deal with the shortfall of more than $24 billion. And California not the only state drowning in debt. Several others are also facing a deepening crisis and agonizing decisions on where to make cuts.
CNN's Elaine Quijano explains.
(BEGIN VIDEOTAPE)
ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): Across the country, state governments are scrambling to pay the bills. In Illinois, a $9.2 billion deficit.
GOV. PAT QUINN (D), ILLINOIS: Our state is really suffering its most difficult financial crisis since 1818.
QUIJANO: In California, an eye popping $24 billion shortfall.
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: Our wallet is empty. Our bank is closed and our credit is dried up.
QUIJANO: And in Pennsylvania, a $3.2 billion gap.
GOV. ED RENDELL (D), PENNSYLVANIA: Make no mistake, it's the financial crisis that caused this.
QUIJANO: In the midst of the recession, state tax revenues dropped off sharply, leaving state budgets deep in the red.
JON SHURE, CENTER ON BUDGET AND POLICY PRIORITIES: Unlike the federal government, the states can't run at a deficit and they can't print money. So when they have a shortfall between needs and available revenue, they really have to scramble.
QUIJANO: That means schools, teachers, health care, all in danger.
TODD HAGGERTY, NATL. CONFERENCE OF STATE LEGISLATURES: Well, you see that these budget gaps are so large that states are facing and pretty much anything and everything is on the table.
QUIJANO: Including cuts in programs that help the elderly and veterans, tax and fee increases, layoffs of state employees and even partial government shutdown. Experts say the federal government is providing some relief. On average, they say states are using money from the economic recovery plan to cover roughly 40 percent of their budget shortfalls. SHURE: There are no silver bullets in this. The stimulus package, which was unprecedented relief from the federal government for the states was aimed at solving about 40 percent of the state's budget shortfall and it's doing that.
(END VIDEOTAPE)
LONG: Elaine Quijano now joins us live from Washington with a closer look. And Elaine, if the states can get by this time around, even if they can, what about next year?
QUIJANO: You know, it doesn't look good. Experts say, Melissa, that states are going to be facing these same problems through 2010, maybe even beyond that. Why? Because even though the national economy may be showing some signs of recovery, states take longer because unemployment eases only gradually and, Melissa, that's exactly where states get their revenues from.
LONG: Well, Elaine Quijano, joining us live from Washington. Thanks, Elaine.
Well, if you take Tylenol or other products with acetaminophen, I think you're going to want to hear about some new recommendations from the FDA.
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LONG: Some widely, again, widely-used pain killers that may be in your medicine cabinet right now have the FDA worried. They're concerned about the potential of people taking a deadly overdose, and this could lead to some new guidelines. Our senior medical correspondent Elizabeth Cohen joins us now. And again, could, being the key word.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right, could being the key word.
This is an FDA committee that met yesterday to look at acetaminophen overdoses. Acetaminophen is what's in Tylenol but it's also in other drugs, for example, Vicodin and Percocet and this committee said, you know what, we are worried that people are overdosing on the acetaminophen that's in Vicodin and Percocet because they are relatively high amounts of acetaminophen in these drugs. And this committee said you, yank them off the market, no more Vicodin, no more Percocet.
Now, the FDA did not have to listen to its committee, but it certainly takes its recommendations pretty seriously. Now this committee also said that over the counter medicines like Tylenol should have lower maximum doses of acetaminophen.
LONG: Acetaminophen seems to be in so many labels. So how big of a problem could this potentially be? How many people are getting sick?
COHEN: I know, it's a bigger problem than most people think. A lot of people think, "Oh it's over the counter, how harmful can it be?". But acetaminophen, when taken in amounts that are too large, can really harm your liver and in fact, it can cause liver failure. From 1990 until 1998 there were 56,000 emergency room visits because of acetaminophen poisoning and 26,000 hospitalizations. And each year, each year there were 458 overdose deaths because of acetaminophen. And Melissa, the line is very thin between the right amount and too much. That's part of the problem here.
LONG: And again, a committee reviewing this. If there are changes, when can we see them?
COHEN: The FDA will usually act on these recommendations in about six months or so. So it's going to be a while.
LONG: All right. Senior medical correspondent Elizabeth Cohen, thank you.
Now, a will can be challenging, a difficult document to put together, but it can sometimes be a loved one's last chance at financial security. Our personal finance editor is going to tell us who should get a will and why.
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ANNOUNCER: Live breaking news, unfolding developments, see for yourself in the CNN NEWSROOM.
LONG: Good morning, once again. Here's a look at some of the news making headlines this morning. An ultimatum in Honduras. The United Nations and the Organization of American States are both demanding leaders of the military coup in Honduras restore the ousted president to power.
And a winner, an official winner at last. Nearly eight months after voters went to the polls, Al Franken has been declared the winner of the U.S. senate race in Minnesota.
And lawyers could soon file a will for Michael Jackson in a courtroom in California. According to various reports, the seven- year-old document says Jackson's mother gets custody of his children.
Well, you may not have a bank account to match the King of Pop, but that does not mean that you shouldn't put together a will. Personal finance editor Gerri Willis joins us from New York to tell us what we all need to know about creating a will. And first and foremost, who should be drafting one?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: You may not think you own a lot, but you probably own more than you think, especially if you have a home, a car, and maybe even a baseball card collection. That means you're a good candidate for making a will.
Generally if you have assets, property money you want to direct to another person, you should make out a will. If you don't have one when you die, then the state decides who gets what and what typically happens if you don't have a will and you're survived by a spouse and some kids, the spouse will get up to half your assets and your kids will get the rest.
Making out a will, though -- make sure your property goes where you want it to go and you can avoid nasty family squabbles if it's clear as a bell.
LONG: How do you get organized? How do we go about drafting that will?
WILLIS: If what you own, your estate plans are too complicated, say, what you have is a modest home and you don't have stepkids and a business, you can generally make out your will online. It will cost you 70 bucks, but if your situation is more complicated, say you have a vacation home or you're remarried, other things going on, you may look for a lawyer who specializes in estate planning.
Keep in mind these lawyers can be expensive. They can cost anywhere from 600 bucks to $1,000 per will, sometimes more depending on your situation. Melissa?
LONG: You mention when somebody gets married. How often should you change the will and update it?
WILLIS: Any time you have a life-changing event. If you get married, divorced, you have children, you buy a vacation home, all of these are indicators you should get your will updated and don't keep your will secret. Your family should see it. They should know what's in it and know where to find the latest copy, and that copy should be kept in a safe place. Maybe a bank safety deposit box or at home in a fireproof case. Somewhere where people know how to get it. Because you know what? If they can't find it, you don't have a will.
LONG: Important peace of mind if you actually go through this and draft a will. Gerri Willis in New York, thank you very much. Sound advice.
WILLIS: My pleasure.
LONG: There is some reason for homeowners to take heart this morning. There are some new signs that the housing market may be stabilizing. Minutes ago, we learned that pending home sales in May rose one-tenth of one percent, and that is the fourth straight month of an increase. The National Association of Realtors reporting that credits lower home prices and, also, the $8,000 tax credit that is available to first-time homebuyers right now.
Well, big cities have been having quite a revival. New census figures show that the trend moving to the suburbs is slowing. New York, Chicago, Los Angeles, all showing population increases. The biggest growth has been recorded in New Orleans. Round Rock, Texas; Cary, North Carolina; Gilbert, Arizona and McKinney, Texas. People are staying put in the cities because the recession, this housing crunch and higher gas prices simply make it tough to relocate.
Nearly half a million jobs lost during the month of June, but is it possible to find a silver lining in all this? We want a silver lining. Susan Lisovicz at the floor of the New York Stock Exchange. Is there one? Good morning, Susan. Is there one?
SUSAN LISOVICZ, CNN CORRESPONDENT: Some days are easier than others to find the silver lining. Pretty tough when it has to do with jobs, quite frankly, Melissa. So many of them, 473,000 jobs, to be exact. That's from ADP, which is a payroll processing firm, so it certainly keeps track of those things. Wall Street was expecting that number to be under 400,000.
The silver lining, if you will, is that May was revised the previous month, I should say, was revised lower. That was May. Also, we have a separate report from Challenger, Gray and Christmas that shows the planned job cuts, the announcement slowed. That is the fifth straight month. So, that is encouraging.
But let's face it, the number of job cuts is still very high and the unemployment rate is quite high. What is also high, and this is also silver lining, is the first day of July starting off on a positive note. The Dow is up 128 points, the NASDAQ is up 25. Good start, tough act to follow, though, the second-quarter rally that we saw. Melissa.
LONG: Of course, so many reports on housing and consumer sentiment, and they really gauge how the markets move and how investors react. A report that comes out tomorrow, however, a lot of people are really waiting for, is the government's official report.
LISOVICZ: That's right, Melissa. This report, this ADP report, private sector, very broad range of industries, but the government jobs report coming out a day early because the markets will be closed on Friday in observance of the Independence Day holiday includes both public and private, and we are expecting a big number there, as well. I mean, under 400,000, but we've been surprised before and sometimes unpleasantly surprised.
We also expect the unemployment rate to tick higher, getting closer to 10 percent. 9.6 percent is the number we're expecting there. Remember employment, unemployment, jobs, a lagging indicator. Even as we get signs that the economy is starting to stabilize or even improve, the jobless rate is expected to rise. It is lagging indicator, Melissa. I can't say it often enough.
LONG: Susan, about 30, 35 minutes ago we got a look at the manufacturing figures out of a new report. What can you share with us about that?
LISOVICZ: When this rate goes higher, that is actually an improvement. We did see that the manufacturing index did improve slightly. Remember, this is a sector of the economy that has been really decimated. Just think of the auto industry. It has ticked a little bit higher, but, it was better than the Street expected, but still very weak. Melissa.
LONG: Susan Lisovicz at the New York Stock Exchange. All amongst the hustle and bustle this morning. Thanks, Susan.
LISOVICZ: You're welcome. LONG: If you are considering trading in your gas guzzler for a more fuel-efficient vehicle, there is help from Uncle Sam. The new cash for clunkers law goes into effect today. CNNmoney.com's Poppy Harlow is looking at who stands to benefit and who doesn't benefit. Hey, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey, Melissa. Yes, this is a billion dollars of taxpayer money going into this new initiative. Federal officials still working out some of those details. But we want to run through the basics for you, so if you're in the market for a new car and lucky enough to be able to do that right now, here's what you need to know.
If your old car gets 18 miles per gallon or less, you can get a government voucher -- a pretty substantial one between $3,500 or $4,500. Depends on how fuel efficient the car is. Now, here's the catch. The clunker can't be more than 25 years old. A lot of people don't have cars that old, but they can't be more than that.
Another catch here is that those vouchers from the government, they are actually in place of and not in addition to the ordinary trade-in value of your car or your truck. So, if your old car is worth more than the voucher amount when you trade it in, you shouldn't even bother with this at all, Melissa. That's something a lot of people don't know. You really should know that. This is not on top of the trade-in value, it is in lieu of it, Melissa.
LONG: Looking at that car, 25 years of age. Kudos to that car company and that driver as well. With this cash for clunkers program, is this really going to significantly boost car sales in the U.S.?
HARLOW: That is the hope and the Big Three love this, they were in support of it. It was debated in Congress. What lawmakers are predicting is this will prompt sales of about 250,000 new vehicles. It runs through November 1 or when that billion dollars in funding runs out. We went on the streets in New York, we asked people about it, and not one person we stopped heard of cash for clunkers. After we explained it, here's what their reaction was.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We're in a recession and money's tight, and a little bit of money goes a long way.
UNIDENTIFIED MALE: The government's going to give me money to go get another car that is better than the old car? I would run with it.
UNIDENTIFIED FEMALE: I just have this really fuel-inefficient -- it is like a big old Jeep, and I would rather be driving something that gives me a little more bang for my buck.
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HARLOW: All right, her big old Jeep is probably going to qualify, but a lot of cars are not because their fuel economy isn't bad enough. One woman told us she wanted to trade in her 1990 Toyota Corolla. We looked that up. It gets better than 18 miles per gallon. So that's not eligible. Even though it's an older car. This is really going to help drivers of trucks and SUVs. You want to go on to this site, fueleconomy.gov. Find out if you qualify. Those are the details. More on CNNmoney. Melissa.
LONG: Poppy Harlow from CNNmoney.com. Thanks, Poppy.
Fans, the longtime fans and now the new fans put Michael Jackson back on the Billboard charts. Josh Levs following this story for us. Morning, Josh.
JOSH LEVS, CNN CORRESPONDENT: Yes, Melissa. I'll tell you, we've got some brand-new figures. They're out right now. We're going to show you what the numbers are behind the skyrocketing album sales and a brand-new record, something that no one has ever done.
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LONG: Final farewell plans for Michael Jackson, and what about the future of his children? Here's what we know at this hour. Lawyers may file his will in California courtroom today. Various reports indicate that the document, dated in 2002, gives custody of his three children to his mom.
For Michael Jackson's fans, a public viewing. A law enforcement official is telling CNN it will be held at his Neverland ranch in California on Friday. The family plans a private service there on Sunday.
Of course, other tributes are taking place around the world. CNN's Thelma Gutierrez is at one of them. She is at the Grammy Museum in Los Angeles. Good morning, Thelma.
THELMA GUTIERREZ, CNN CORRESPONDENT: Good morning, Melissa. This is a major exhibit here at the Grammy Museum, and this exhibit was coming down on the day that Michael Jackson died. So, everybody here at the museum had to scramble to put it right back up again.
Bob Santelli is the executive director here at the Grammy Museum. Bob, tell me. Michael Jackson actually reached out to you a few months ago and told you that he wanted to be included as part of this exhibit.
BOB SANTELLI, EXECUTIVE DIRECTOR, GRAMMY MUSEUM: That's right. The Grammy Museum opened in December and in early January, we got word from one of his representatives that Michael had heard about the museum and was hoping that since he won so many Grammys that he would be in the museum. And we were absolutely delighted with that.
GUTIERREZ: You had an opportunity to go into his private collection and make your own selections. How did you choose these items?
SANTELLI: When you do a museum exhibit, you really want to find a sense of story and it became very quickly obvious to us that many of the fashion statements that Michael made over the years were relegated to the idea of being the King of Pop. So, we looked for things that had a regal sensibility to them.
If you look behind me, a number of these outfits all suggest regal status, so we told the story of how Michael proclaimed himself on stage.
GUTIERREZ: And, of course, the white suit.
SANTELLI: This is really one of the most iconic ones we have in the exhibit because this is the suit he wore on his most famous album, maybe the greatest pop album of all time, Thriller, in 1982.
GUTIERREZ: Right over here, you have a jacket.
SANTELLI: This jacket here is a jacket that he would wear. But the most important thing about this jacket and like all of these, is the weight of it. Check this out. Feel how heavy this is. This is 15 to 17 pounds, and really something on a body such as Michael's to wear this and be able to dance and move like he did was quite an accomplishment. It suggested he was really an athlete as an entertainer.
GUTIERREZ: Holding this, it's hard to believe that he could move like that in something that weighs this much. Here you have shin guards.
SANTELLI: These are shin guards he would wear on stage. You can see the wear marks on the knees and the ankles when he would get down and move around. These, too, very cumbersome on a normal person, but on Michael Jackson, these were just part of the show, and he was able to move around very easily.
GUTIERREZ: You also mentioned when you actually shook his hand, this was a very strong man, even though he only weighed about 110 pounds.
SANTELLI: When I met Michael, one of the most important lasting images that I have of shaking his hand because it was almost as if I were shaking a boxer's hand. A lot of strength in his hand. Very much not in what I thought was going to be, and I thought it would be something far more dainty and it was very powerful. The man was very strong.
GUTIERREZ: Bob, how important will this exhibit be now that Michael Jackson has passed away?
SANTELLI: What we want to do here at the Grammy Museum is show his musical legacy and the fact that he took music on stage and elevated to the highest dimension. One of the greatest performers of all time. What you will see at the Grammy Museum are his stage outfits and the kinds of things that help make him the King of Pop. The way he was able to present himself with the sequins and military garb and something he was very interested in and something now that will last.
GUTIERREZ: Bob Santelli, thank you so much. If you want to see any of these items, very impressive, come here to the Grammy Museum and check it out yourself. This museum is now open indefinitely. Melissa.
LONG: An amazing opportunity for Mr. Santelli to actually pick some of those items and meet Michael Jackson. You mentioned the exhibit was coming down?
GUTIERREZ: Yes, because exhibits run their course and, so, this exhibit had been up for a little bit, and it was time for it to come down. They were in the process of actually taking it down when they heard the news, and at that point, everybody had to scramble to get it right back up again. But it will be here indefinitely.
LONG: Thelma Gutierrez, live from the Grammy Museum. Thank you so much.
Now in the days since his death, Michael Jackson has broken records. Josh Levs joins us now with the latest on Jackson's album sales and a first in music history. What kind of first are you talking about?
LEVS: Yeah, it's interesting. I was just speaking to the folks at Billboard this morning and make sure I was getting it right. By the way, it's open up behind me. Billboard.com. You can see there the M.J. Chart record.
Let me tell you the big one. Let's go straight to this graphic here. Basic idea here. The way you look at albums, you got the latest releases. You also have catalog albums that are older. This is the first time ever that you have catalog albums outselling the number one latest release, and not only did they outsell with one, but all top three of his albums that have been selling outsold the number one latest release, which was from the Black Eyed Peas.
Let me show you the big figure on the next graphic. 415,000 solo albums. And this is important, little words that bottom of your screen point out the week ended Sunday night. So, we're talking about the news of his death came Thursday afternoon. So, all those sales by Sunday night and still shooting to number one, breaking records.
Here's the top three on the next graphic. These are the ones that sold the most, more than any others you've got. You have "Number Ones" and "The Essential Michael Jackson" and "Thriller," and all of them beating the 100,000 sales mark.
And then finishing out the rest of the top nine. You have more Jackson albums. Show this last graphic here. "Off The Wall" then at number five, is the Jackson Five's album, "Ultimate Collections." And then you're back to all solo albums. "Bad," "Dangerous," "Greatest Hits HIStory," and then you got the ultimate collection there. So, he has basically taken over all top nine slots of the biggest sellers, and in the process broke that record, Melissa.
LONG: Amazing sales. Absolutely. Josh Levs, thanks so much.
LEVS: Thanks.
LONG: Still to come, gays in the military. The defense secretary looking for ways to add some flexibility to the "don't ask, don't tell" policy.
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LONG: A reminder, health care is on the calendar in Washington. President Obama taking your questions on health care reform. An online town hall meeting. You can also follow it here on CNN television this afternoon beginning at 1:15 Eastern.
And also the conversation's happening on our blog this morning. We've been asking you, "What are your concerns about health care reform?". We hope you're participating in the conversation. That's the question. Want to share some comments we received.
This is from Steve. He writes, "It concerns me that not enough change is coming, not enough reform and not enough money-saving measures put in place for the future. And also, not getting all people covered or having it available to them and, yet, it's costing trillions while not accomplishing much." Steve, thanks for writing in.
Here's another Steve, this is Steve S., who writes "What concerns me the most is the urgency, this issue is being pushed through Congress and the Senate with little time being taken to ensure the quality of health care doesn't fall."
Here's another comment. One to highlight. This is from Aaron who writes, "What concerns me about Obama's plan is that it will eliminate our current system and coverage choices."
Thanks so much for writing in. Continue to participate in the conversation. CNN.com/newsroom.
So, what would you ask the president about health care? Again, go to our blog here, participate at CNN.com/newsroom. Participate in the next couple hours, and Tony Harris is going to be joined a little bit later by the White House health reform director, and they're answering your questions during the lunch hour at 12:00 p.m. Eastern time.
Under fire from gay rights activists. President Obama has been criticized for not moving fast enough to lift the ban on openly gay military service, and now Defense Secretary Robert Gates is looking at ways to make the regulation, quote, "more humane" until Congress changes it.
More now from our Pentagon correspondent Barbara Starr. Good morning, Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Melissa. That's really a key phrase that you just used. More humane.
Defense secretary Robert Gates' words about what he would like to see happen about implementing the law that bans people that are gay from openly serving in the United States military. That law now in effect for many years, highly controversial. Gates yesterday, speaking to reporters, let it be known that he is looking at how to modify all of this. He says he's looking at a number of options.
Could the policy be implemented somehow differently until the law is changed? And he listed some exceptions that he wanted to consider, and what he's talking about is a couple of things he mentioned that possibly gay service members could still serve, if, for example, they were outed by some act of vengeance, by a jilted lover, the secretary pointed out, or by some sort of blackmail. In other words, that it wouldn't be so automatic that a person would be processed out of the military automatically, that there could be these exceptions.
Now, all of this, of course, falls short of President Obama's still existing campaign promise to lift the ban outright and change the law. Gay rights activists are saying that they're applauding Secretary Gates' proposal, if you will, but, still, that they will come back with their own recommendations about what they want to see happen. No word from Congress yet about any reaction to Secretary Gates' latest new plan. Melissa?
LONG: Thank you for the update. That's Barbara Starr at the Pentagon.
Guarding against terror or robbing Americans of their freedom? A proposed crackdown on general aviation has the pilots up in arms.
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LONG: In our "Security Watch," a couple of stories to highlight for you dealing with terrorism. First, a new report from the New York City police department. It says high-profile buildings need tighter security to guard against terrorist attacks.
Here are some of the recommendations. Positioning glass facades away from nearby landmarks and putting tighter restrictions on blueprints and floor plans that could fall into the wrong hands. This report does not identify the buildings considered at higher risk for such attacks.
Now the terror threat in the skies. The 9/11 attack shows the killing power of hijacked airliners, and now private pilots could face tough new security measures. They're outraged. They're fighting back. The details from CNN's homeland security correspondent Jeanne Meserve.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): Bob Hawkins has been flying for 50 years, and he has had it with the Transportation Security Administration.
BOB HAWKINS, PILOT: I find it a real pain in the tush, and I don't think it accomplishes anything.
MESERVE: Hawkins is upset about rules that the TSA is proposing for noncommercial aircraft, even though they would not apply to the small plane he is flying, but larger corporate and personal jets, generally those holding eight or more people. If the aircraft weighs more 12,500 pounds at take-off, the TSA proposes fingerprinting the pilot and doing a background check. Checking passenger names against terror watch lists and banning the same items prohibited from the cabins of commercial flights. Knives and guns, but also tools even golf clubs. The aviation community is pushing back hard.
It would be the equivalent of telling you have to go through all kind of security requirements to drive your car.
MESERVE: The Aircraft Owners and Pilots Association enlisted celebrity pilot Harrison Ford to underline the high cost of the proposal.
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HARRISON FORD, ACTOR: Millions of jobs and large and small businesses depend on general aviation.
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MESERVE: Aviation groups also argue that private planes are too small to be effective weapons, and that security at general aviation airports is much improved.
A recent report from the Department of Homeland Security and Inspector General seem to bolster their case, concluding general aviation presents only limited and hypothetical threats to security.
But a TSA official counters "We don't know who is flying around where, what or who they're carrying or what their intent may be." The previous secretary of homeland security said repeatedly aviation had to be seen as a threat factor.
MICHAEL CHERNOFF, FORMER HOMELAND SECURITY SECRETARY: Not because of a specific threat, but simply because the difference between security in commercial aviation and security in general aviation has grown, and that difference creates a vulnerability.
MESERVE (on camera): The TSA is talking with aircraft manufacturers, pilots and others, and all sides say the proposed security rules are likely to be modified before they're finalized. But pilots like Bob Hawkins aren't likely to be happy with any regulation that they perceive as interfering with their freedom to fly.
Jeanne Meserve, CNN, Washington.
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LONG: Little later today, President Obama is holding a health care forum online. I'm Melissa Long, in today for Heidi Collins. You can find out more about how you can get involved when CNN NEWSROOM with Tony Harris starts right now.
