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New Report Reveals Security Lapses at Some Federal Buildings; Recession at Top of G-8 Agenda Today; Suspected Serial Killer in South Carolina Had Long Rap Sheet; Scientists Claim They Created Human Sperm in a Lab; Republicans Say Stimulus Package Hasn't Created Jobs as Promised; Google to Launch Its Own Operating System Next Year; Questions Continue to Swirl Around the King of Pop's Untimely Death

Aired July 08, 2009 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

HEIDI COLLINS, CNN ANCHOR: Here are some of the other stories we are watching right now. A British soldier is dead following an attack in southern Afghanistan. He was part of the force fighting Taliban in Helmand province. This is the seventh British casualty now in Afghanistan in one week.

Bernie Madoff's wife has her passport back, but Ruth Madoff's attorney isn't saying if she's got plans to leave the country. She surrendered that passport back in December to get her husband out of prison. Bernie Madoff was sentenced last week to 150 years in prison.

Bombs smuggled into federal buildings. A recent security review gives failing grades to guards. The new report detailing the lack of security found in high-level federal buildings is also the subject of a Senate hearing getting under way right now. Take a look at this video, in fact. It shows undercover investigators going through security. They are carrying bomb parts. They later put them together in a bathroom.

It wasn't just in one building, either. They took those bomb parts into 10 buildings in all, and that includes buildings associated with the State Department and the Department of Homeland Security.

And here's something else they found. They snapped this picture of a sleeping guard at one of the federal buildings. Now, we should point out that the problems found at the federal buildings were all with contract workers, not law enforcement officers from Federal Protective Services. This is the agency we're talking about.

In fact, earlier I talked with the head of the FDS officers' union, who said that lack of federal funding may actually be the culprit here. Joining me now from Washington is CNN national security contributor Fran Townsend, a former national security adviser under President Bush.

Fran, thanks for being with us today. Wow, I mean, when you read this, it's kind of like, are you kidding me? Bomb materials -- they were actually brought into these buildings and some of the agents asleep on the job. How concerned should the American public be?

FRAN TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: Oh, the American public should be very concerned, and I'd be particularly concerned if I was a federal worker in one of those buildings. You know, Heidi, one of the things that the union president didn't mention when you interviewed him is the people responsible for supervising the contract guards are of course the Federal Protective Service. And while indeed, they may need more resources, what were they doing with the resources that they have, and why weren't they inspecting and testing these contract guards?

After all, the threat, the liquid bomb threat goes back to a 2006 emanating out of London, as you recall, it led to the ban of liquids on airplanes.

COLLINS: Yes.

TOWNSEND: So what we learned today, Heidi, from this report is the American flying public is better protected than the federal civil servants who work in these federal buildings.

COLLINS: You know, I want to see what Gary Schenckle said here, because obviously he is the current director of the Federal Protective Service. And let's go ahead and put that on the screen. He says this, this is going to be testimony that he gives today as well in this Senate Homeland Security Committee.

"When GAP presented its finding several weeks ago, we took it very seriously." He also said this: "upon my arrival in April 2007, it was apparent FPS was experiencing some serious challenges." Now, you were the director of Homeland Security. What was the state of FPS in 2007? Can you elaborate on that?

TOWNSEND: Well, Heidi, as you know, I left the White House in January of 2008. There's no question that additional resources had been given to places like the Department of Justice, the Department of Homeland Security in order to increase our security posture. I don't have any doubt that more needed to be done, but certainly no one was raising the alarm that we didn't have adequate resources, to be testing, at least that I was aware of, that we didn't have adequate resources to test the contract guards.

I mean, contract guards need to have -- it needs to be cleared, the training that is required of those contract guards. Their armed training, their screening training, and certainly nobody ought to find it acceptable that a guard is found sleeping, or as one of the examples in the report cites, running an adult Web site from a federal site where he's supposed to be protecting people.

COLLINS: Yes. I mean, when we look back at some of the other investigations that have been done, but once again, we should say this was done by the GAO. There are other reports as well. There was a Homeland Security inspector general report back in April that faulted this contracting process that we've been talking so much about. Another one in 2008 by the same agency, GAO, found that the agency was incredibly short-staffed. I mean, what's the deal here? Is the Federal Protective Service a good thing? Or is it something that needs complete reorganization?

TOWNSEND: Well, I think we've got to be careful now. I mean, we typically find a problem that we overreact to. I think the answer is not necessarily hiring more federal employees. You can have contract guards, but there needs to be guidelines set when you hire them. They need to be inspected. They need to be tested, and the Federal Protective Service needs to exert control and responsibility over that process. I think we need to really take a hard look at that and what are the standards for federal contract guards and their training.

COLLINS: Yes, I mean, because we know that the White House is actually right now is in favor of this appropriations bill that we have been talking about and trying to explain, because the Federal Protective Service has been under all of these different agencies. They want to move now again from immigration and customs enforcement to the National Protection and Programs Directorate. OK. People at home are saying who cares? What does that mean? What exactly will happen next year and what needs to be done to ensure the safety of these workers and of Americans in these buildings?

TOWNSEND: Heidi, you raise a good point. You know, it's a real Washington solution: when you find a problem, let's reorganize. And that's not always the best answer because of course that is disrupting...

COLLINS: Well, it costs money, too, to reorganize.

TOWNSEND: Pardon me?

COLLINS: It costs money to reorganize.

TOWNSEND: That's exactly right. Look, I don't think -- I think what's important is did they have adequate resources against the responsibilities they've been given? It looks like right now based on their performance, the answer is no. It may be that they could have done better with the resources they had, and we need to understand that from the GAO report. And I expect you're going to see Senator Lieberman and Senator Collins today asking some really tough questions to make sure we understand where the problems are and what the best options for solution are.

COLLINS: Yes, in fact, we've already seen them quoted in some of the papers this morning, obviously. All right. Well, we sure do appreciate your time. Fran Townsend, thanks so much. And we'll be watching that hearing today.

TOWNSEND: Thank you.

COLLINS: Thank you.

So, what do you think about all of these. You can share your thoughts at cnnnewsroom.com/heidi. In fact, one of the questions that we are wondering about is whether or not detailed reports like this should actually be shared with the public or is that somehow putting our security in jeopardy?

So, go ahead and go to our blog site. We love to hear what you think about that. CNN.com/NEWSROOM and just click on my name. You'll see it right here. Investigations details, how much should we really know? How transparent should the government be when we're talking about security? We'll be looking at those a bit later on.

Meanwhile, going overseas now where President Obama is joining the other G-8 leaders in Italy for the group's annual summit. Topping the agenda, the recession. In a draft statement today, the leaders say efforts to stimulate the economy must continue while at the same time there should be a focus on how to wrap up those strategies. Now while the focus is on serious global issues like the recession, the summit host is being dogged by scandal. Here now, CNN's Paula Newton.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT (voice-over): With his roots in showbiz, Silvio Berlusconi has always pursued what Italians call la bella figura or "making a good show of it." The G-8 meeting, his third with hosting duties, is no different. But the scandal swirling around him this time beats all, even for Berlusconi.

In an interview with CNN, Patricia D'Addario admitted being a high-paid prostitute and is now at the center of an investigation into whether Italy's prime minister paid for sex.

PATRICIA D'ADDARIO (through translator): I feel that I am the only one that is here telling these things that no other woman dare say.

NEWTON: Berlusconi has denied all charges. But as lurid pictures of parties at his lavish villa hit the papers, some are now questioning not just his judgment, but whether he's fit to lead Italy.

"The Economist" magazine has always had an opinion on that. "Mamma Mia!" was how it greeted his latest election victory. And still its editors admit...

JOHN PEET, "THE ECONOMIST": Surprisingly a large number of Italians find him rather charming and cheerful and his brushes with the law -- they kind of almost sympathize with because the Italian state is not highly respected by many Italians.

NEWTON (on camera): And what has been an incredibly frustrating for both the opposition and his critics is that the more (INAUDIBLE) prone Berlusconi seems to be, the more popular he becomes with Italians.

FRANCO PAVONCELLO, JOHN CABOT UNIVERSITY: Mr. Berlusconi is a very tough man, especially when he's in the midst of a fight. And I think that he is going to be taking this G-8 with the usual energy and enthusiasm.

NEWTON (voice-over): But this larger than life personality is a tabloid dream. Incidents too rich, too long to catalog but here's just one at the G-20 with the Queen earlier this year.

The Queen took a good-natured swipe at him, asking why he has to be so loud when calling out to President Barack Obama.

To all this, Berlusconi recently told CNN he had never committed a gaffe.

SILVIO BERLUSCONI, ITALIAN PRIME MINISTER (through translator): I have never made any gaffes. Not even one. Every gaffe is invented by the newspapers.

NEWTON: But as the cameras roll, it's clear that sometimes the newspapers don't have to invent a thing. Berlusconi has always done it his way. Even his enemies admit not even this scandal will likely get in his way.

Paula Newton, CNN, Rome.

(END VIDEOTAPE)

COLLINS: Protests timed to the summit are going on across Italy now. Demonstrators threw tree branches and trash on to Rome's streets yesterday in order to block the traffic. Some 20 activists from Italy and other countries were detained. Greenpeace says demonstrators have occupied four coal-fired power plants today, raising banners urging the G-8 to do more to fight climate change. The energy from that runs three of the plants says production has not been disrupted, and workers at two of the plants held counter-demonstrations.

Now, back here in the United States, President Obama is under fire over his economic recovery plan. Critics say it's not creating jobs. Live picture now from Capitol Hill as the house oversight committee, hearing testimony today on how states are spending their portion of this $787 billion package. Government auditors say many are using the money to simply stay afloat and not for larger ways to jump-start the economy.

Republicans think they have found the president's weakness in the economy and they plan to capitalize on it. We'll have more on that coming up in the half hour.

Saying good-bye to the King of Pop, Los Angeles honored Michael Jackson with a moving memorial.

(BEGIN VIDEO CLIP)

(MUSIC PLAYING)

COLLINS: Many of the entertainment world's biggest named paid tribute with memorial performances and emotional goodbyes. Millions of people worldwide watch it all on TV.

And the hardest moment for a lot of people was when Jackson's 11- year-old daughter poured her heart out.

PARIS KATHERINE JACKSON, MICHAEL JACKSON'S DAUGHTER: I just want to say, ever since I was born, daddy has been the best father you could ever imagine, and I just want to say I love him so much.

(END VIDEO CLIP)

COLLINS: There is still no word yet of the final resting place for Michael Jackson. We'll have the very latest on his death investigation coming up in our next half hour.

A tribute to a murdered star of the gridiron, the Tennessee Titans are opening their field to fans today and tomorrow to pay their respects to former quarterback Steve McNair. McNair spent some of his best years with the Titans. He was found dead in Nashville Saturday next to the body of Sahel Kazemi, whom police say he was dating. No ruling on her death yet, but police call McNair's death a homicide.

Police say South Carolina's suspected serial killer had a long rap sheet, so why was he on the streets? We'll talk about that in a moment.

Also ahead, the heat is on, and meteorologist Jacqui Jeras is tracking those high temps all across the country for us. Hey there, Jacqui.

JACQUI JERAS, AMS METEOROLOGIST: Hey there, Heidi. Pick you word today. Whether it's sultry, steamy, stifling, it's hot in Texas and Oklahoma. We've also got stormy conditions in parts of the country. Find out where coming up in your forecast.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: A suspected serial killer police say went on a terrifying killing spree, now permanently off the streets in South Carolina, but as the panic and paranoia settles, outrage is growing. Patrick Burris had been arrested 30 times in North Carolina. So why was such a notorious career criminal allowed back on the streets?

Reginald Lloyd, director of South Carolina's Law Enforcement Division is joining me now to talk a little bit more about this. Director Lloyd, it is a fair question, it seems.

So, let me give a bit of background here. Quickly on Patrick Burris, as we said, he's been arrested more than 30 times, convicted of crimes in Florida, Virginia, West Virginia, Maryland. He had violated parole a bunch of times. Now, you're a former judge, federal prosecutor. Do you in some way blame the North Carolina judicial system for the deaths of these five people?

REGINALD LLOYD, DIRECTOR, SOUTH CAROLINA LAW ENFORCEMENT DIVISION: I think, Heidi, one of the things we've tried to discuss over these last couple days is that when you look at his rap sheet, it's 25 pages long. There are weapons crimes throughout it. There are burglaries, strong-arm robberies, armed robberies.

COLLINS: It's unbelievable.

LLOYD: At some point we just think -- I think we need to ask the question of why did this individual not receive a much longer sentence at some point in his criminal career?

COLLINS: Yes, because what was it? He had spent eight years, I believe, in jail, at one point, yes?

LLOYD: Right. A little less than eight years, I believe, and actually our understanding is that he actually qualified for early release and...

COLLINS: Model prisoner?

LLOYD: ... you know, had he still been in prison -- our understanding is he was not a model prisoner, but he had several infractions during the time that he was incarcerated, and yet he still qualified for an early release. And you know, I think the criminal justice system has got to decide what we're going to do with habitual career offenders, and I believe much longer sentences are deserved in those cases.

COLLINS: Yes. And I guess not only sentences, but then, you know, availability for parole, obviously needs to be looked at as well for something like this. I mean, this is an incredible story for the state of North Carolina. A hundred investigators, in fact, from both North and South Carolina working on this case now. The suspect is dead, but there are these two other people. Can you update us on what it is that is going on in the investigation at this point?

LLOYD: Sure. One of the things that after the shooting in North Carolina that we wanted to do is go back and start piecing together his actions and movements over the last couple of weeks. Obviously we're still trying to go link him to activities in and around Gaffney, South Carolina, his movements in that area. We're also trying to, along with North Carolina, to determine if he's been involved in any other unsolved crimes, whether they are murders, burglaries or anything else since he's been out of prison.

So we're concentrating on that, we're concentrating on continuing to link evidence that we found, either in a residence that he was using, or his vehicle that links him to the killings in South Carolina, and we've had very good luck on that. So we're just continuing to try to put this together in terms of an investigation just as if he were alive.

COLLINS: You know, besides thinking about the relatives of those who were killed, certainly devastating for them. The rest of the people in this town, Gaffney, South Carolina, are they still afraid? I mean, this is terrifying.

LLOYD: It was, and they were certainly -- they had cause to be worried during this spree. I've got to tell you, though, we're so proud of the tips that came in, we're very proud of the way the community reacted. Checking on neighbors, checking on family members. They were very cooperative with law enforcement throughout this. They deserve better, and I think they deserve answers to why this individual was out, why he targeted not only this community, but these particular victims, and we're still trying to piece that together so we can give them those answers.

COLLINS: Yes. They do deserve better, certainly and did the family members as well. All right. Well, we appreciate your time. Reginald Lloyd, the director of South Carolina Law Enforcement Division. Thank you.

LLOYD: Thank you, Heidi.

They needed snowplows in the middle of July in Yonkers, New York after a double whammy of hail and sleet did a number on the area yesterday. Snow plows hold off more than two inches of the stuff. Heavy winds and rain, downed trees, took out utility poles, causing a whole lot of power outages and damage at least two of the homes there. Jacqui Jeras has been watching all of it and joins us now. Hi there, Jacqui.

JERAS: Hey there, Heidi. Yes, things cleared out a little bit in the northeast finally but that sure woke up a lot of people last night about 11:30. Today our big focus at this hour is the heat. Let me tell you. It is smoking hot in Texas today. Temperatures already well into the 80s, and we're looking at heat indices this afternoon between 100 and 115 degrees. That's really, you know, dangerous levels. Heat advisories from Austin all the way down towards the Rio Valley.

Austin, for example, looking hazy at this hour, temperatures up to 103, we think, this afternoon, and it will stay in the triple digits right through the weekend. That's our tower cam, KXAN-TV. It looks like we need a little Windex maybe there for a fine print. Let's talk about who else is under the heat today? This is really going to be building over the next couple of days. You know, it's been lasting for a couple of days as well. McAllen, Texas, for example, had a record high yesterday of 109. That was the fourth consecutive day with a record high. And it's one away from the all- time record, hottest it's ever been in that city.

Yesterday Ft. Lauderdale up to 97, 95 in Miami. Hopefully some of those South Florida temperatures will be cooled a smidge today due to the chance of some thunderstorms rumbling on through. Well, we're really hot here across the plains states, really cool across parts of the northeast. We showed you that video, those storms going through. The northeastern corridor staying cool there, with a chance of storms today.

We're also looking at some heavy showers across parts of Florida. Look at all of this wet weather into the Gulf of Mexico right now. You know where it's going, yes, right into northern parts of the state. You've already seen anywhere between about two and five inches of rainfall here in the last couple of days, we could see another one to three on top of what you already have, and a couple of those thunderstorms in here could reach severe levels. We're also monitoring the threat for severe weather across the upper midwest today. Storm prediction center highlighting here a moderate risk now across parts of the Dakotas. So look for that rough weather to begin developing later on this afternoon. Heidi?

COLLINS: OK. Will you keep us posted, Jacqui. Thank you.

Scientists say they have created human sperm in a lab. A closer look at their claim and the implications of it in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: In a medical first, British scientists say they have developed human sperm using embryonic stem cells. They say it will help doctors better understand infertility in men. Joining me now to talk a little bit more about this CNN's senior medical correspondent Elizabeth Cohen. So, all right, what did they do?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: These British researchers, well they were a little curious and they said, "Gee, I wonder if we can make sperm out of embryonic stem cells."

So, what they did is they took an embryo. They took the stem cells out of the embryo, and well they made sperm. It doesn't look exactly like sperm, but they say that the cells they made have the same properties of sperm. I just got off the phone with one of the co-authors, and he said in five to seven years we think that we could tell an infertile man, hey, we know you're infertile and we're going to help out. We're going to make you sperm that have your genetic traits.

In other words, like sperm that would be your sperm if you were actually fertile. Now, I must say that some scientists are skeptical about this. They think that this really isn't sperm, some of them, and they also have great ethical concerns about sort of making human reproductive cells in the lab. There's some ethical issues there as well.

COLLINS: OK. Well, I mean, I guess you have to consider each one of the cases separately in all of this. Because that's what ends up happening as we get further down the road, if in fact it becomes viable. Could the sperm they made right now, could it get a woman pregnant?

COHEN: I asked the researcher that, and he says yes, he thinks that the sperm that he has in his lab right now could get a woman could get pregnant, but this is a huge but he thinks that the offspring would be abnormal. So they obviously have to tweak that.

COLLINS: Yes, very much so.

COHEN: And that's also why some ethicists are saying why are you even going there?

COLLINS: Yes. OK. Well, have they tried this on animals?

COHEN: Yes, he said that they did try it in mice? And they did get girl mice pregnant, but those baby mice were abnormal, which is why they have the concerns about humans and why some ethicists say if the mice children were abnormal, why are you even thinking about trying this in humans? So it will be interesting to see if they even get permission to try this in humans, to try impregnating a woman with the sperm.

COLLINS: Yes, very much. Well, keep us posted.

COHEN: I will. COLLINS: If they get past the girl mice.

COHEN: Yes, absolutely.

COLLINS: We move on to real girls. All right. Very good. Elizabeth Cohen, thank you.

Show me the jobs. That's the outcry, and critics say the president's economic recovery plan isn't working. Republicans bring out the bloodhounds to sniff around the money trail.

(COMMERCIAL BREAK)

COLLINS: This hour, Vice President Joe Biden is set to make what's billed as a major announcement on health care. We're getting word the vice president will reveal hospitals are ready to give up $155 billion in government payments over the next ten years. Live pictures there. The savings could be used to help pay for coverage for millions of uninsured Americans.

The global economic crisis topping the agenda at the G-8 summit. Leaders from eight world powers, including President Obama, are meeting in L'aAquila, Italy starting today. Here's what we know about this year's summit. President Obama is expected to spend his time there pushing for more international stimulus packages. Other issues on the agenda: climate change and stopping the spread of nuclear weapons.

And security, as you would imagine, is high. Italy claims it arrested six terrorists planning to attack the summit.

Back here at home, $787 billion in your taxpayer money. Republicans say it's not working to jumpstart the economy. A House oversight committee is hearing testimony this morning now on how the stimulus money is being spent.

Meanwhile, Republicans smell blood. They think they have found President Obama's weakness. CNN's Jim Acosta reports.

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Where are the jobs? We've put the dogs on the money trail to find out.

(END VIDEO CLIP)

JIM ACOSTA, CNN CORRESPONDENT: In the latest sign the economy is in the doghouse, Republicans are siccing their bloodhounds on the stimulus, with this video that asks, "Where are the jobs?".

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R), OHIO: I'm John Boehner. This is Ellie Mae. She hasn't found any stimulus jobs yet, and neither have the American people.

ACOSTA: It's an issue that dogged the president all the way to Russia, where Mr. Obama clarified statements made by his own vice president on the recession.

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: There was a misreading of just how bad an economy we inherited.

ACOSTA: Not exactly, according to the president.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I would, actually -- rather that I say misread, we had incomplete information.

ACOSTA: Who still believes the stimulus was the right call

OBAMA: There's nothing we would have done differently.

ACOSTA: But Republicans point to President Obama's dire warnings back in February when he urged the Congress to pass the stimulus.

OBAMA: We're moving quickly because we're told if we don't move quickly, the economy will keep getting worse. We'll have another 2 or 3 or 4 million jobs lost this year.

ACOSTA: Turns out even with the stimulus, the economy has shed 3.4 million jobs in just six months. While the president says he's now open to a second stimulus, one of his top economic advisers is already calling for one. Laura Dee Andrea Tyson told an economic seminar in Singapore, "We should be planning on a contingency basis for a second round of stimulus."

Republicans say the White House can't get the story right.

SENATOR MITCH MCCONNELL (R), KENTUCKY: They said the stimulus was necessary to jumpstart the economy. Yet now with about a half million jobs lost every single month, they've started to admit they simply misread the economy. These were costly mistakes, and we can't take them back.

ACOSTA: Despite a rough couple weeks for Republicans, GOP strategists see their own political green shoots of recovery on the economy.

DOUG HEYE, REPUBLICAN STRATEGIST: Nothing has really galvanized the Republican party more than the stimulus vote. One thing that we've seen is that the president's popularity, while he is still popular across the nation, really is taking hits in key states.

(END VIDEOTAPE)

COLLINS: Jim Acosta joining us now live from Washington, D.C. this morning. Jim, how likely do you think this second stimulus is?

ACOSTA: Boy, that depends on who you talk to, Heidi. The president is in a tough spot with the stimulus and with the recession. Not only does he have critics on the Republican side, which he probably expected, there are some on the left of the Democratic party who say the stimulus wasn't big enough to begin with, and we need a second, stronger stimulus, no matter what the deficit tells us right now.

So he's in a very tough spot, especially in places like Ohio, where a recent poll shows less than half the people there don't like the job he's doing on the economy. Ohio, as we know is a bellwether/battleground state. And while this may be 2009, and 2012 is still three years away, the White House is paying very close attention to that, Heidi.

COLLINS: I think everybody is when we talk about money, taxpayer money, that's for sure.

ACOSTA: Absolutely.

COLLINS: Jim Acosta, thank you.

ACOSTA: You bet.

COLLINS: A search engine giant is dropping a bomb on Microsoft. Google plans to debut its own computer operating system to take on Microsoft's vice-like grip on the PC market. Susan Lisovicz on the floor of the New York Stock Exchange with more on this showdown. Very interesting here. Susan, good morning once again.

SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning, Heidi. That cheeky Google, it's calling out Microsoft. That's right, it is going to debut its Chrome operating system in the second half of next year, which is a direct challenge to Microsoft's windows operating system. Chances are, if you're not on a Mac, you're on Windows. It is dominant not only here in the U.S., but worldwide.

What Google wants to do is debut an operating system that will primarily be used in Netbooks, which are lower-power, cheaper laptops, do less things, but certainty are becoming more and more popular, especially in this economy. Not a whole lot of details yet, but we're seeing a reaction on Wall Street. Google shares are up nearly 2 percent, Microsoft shares are down nearly 1 percent. Overall market is showing a bit of a bounce after yesterday's sell-off. The Dow is up 19, the NASDAQ is up 21. Heidi.

COLLINS: Well, we do know how popular Google is as a search engine, anyway. How well-established, though, Microsoft is with computer software, so this is really a battle of the titans, isn't it?

LISOVICZ: That's why it's such a delicious story. Come on, Heidi, competition is good for us. It tends to bring about innovation, oftentimes more choice, better cost. We should talk.

You know, this is not the first time this has happened. Others have tried and failed to go against Windows, among them IBM and Linux. And there's also reciprocity here, because Microsoft has been trying to get into the search engine market.

Last time I looked, I think we were still using Google as a verb, but we aren't using "bing." Have you been using your "binging" something? No. That's what we're talking about. We're talking about two different companies, powerful in their own ways, trying to encroach upon other areas. Google has been trying to create some software to challenge Microsoft to little effect so far, Heidi.

COLLINS: Yes. Sounds like it. Well, how do they plan to differentiate themselves? Google, I mean?

LISOVICZ: Well, one of the vulnerable areas for Microsoft is with security. Earlier this week, we were talking about Microsoft warned of hackers attacking Windows XP and the Windows systems 2003. Just quickly, Google says it wants to design security of its Chrome system so people don't have to deal with, quote, "viruses, malware and security updates." On the Google Web site, executives say it should just work.

COLLINS: Well, we'll leave it at that. Good luck to them.

LISOVICZ: Yes, we would like that, too.

COLLINS: Susan, appreciate it. Thank you.

LISOVICZ: You're welcome.

COLLINS: The winds of change for oil men turned renewable energy advocate T. Boone Pickens. His plan to build the world's largest wind farm is blowing colder. CNNmoney.com's Poppy Harlow has our "Energy Fix" now. What's the deal here, Poppy? No more wind power?

POPPY HARLOW, CNNMONEY.COM: No, definitely he's still on track. We're talking about T. Boone Pickens. Still on track for a wind farm, just not the wind farm as quickly as he was hoping in Texas. It all comes down to money and funding. He told us just a bit ago he has slowed those plans.

This wind farm, you heard a lot about it. It could have powered 1.3 million homes. Just slowing down that process right now, saying it was the transmission issues that were a big problem. You have to route all that renewable energy to a central grid. It's very expensive to build those transmission lines, and he said just wasn't able to tap the funding he needed to do that right now.

But he wanted us to reiterate this project is not disappearing. He's ordered, Heidi, 667 wind turbines from General Electric that cost him $2 billion. You can't just return those, so he's looking in Kansas, in Ohio, he's looking in Canada, for places to start new projects outside of this Texas plan, Heidi.

COLLINS: So it's definitely not the end of the Pickens plan, but if he can't get the funding, it makes me wonder how many people are really buying into the idea in the first place.

HARLOW: It's a great question. We asked him that. He wanted us to clarify something. He said, "Listen, this is getting a lot of headlines today, but we've told this story three times since the beginning of the year. It's just getting a lot of attention today." The government funding isn't there yet from the stimulus bill, but he's still fully committed to this.

Remember, he announced the Pickens plan, which wind was a part of, a year ago, when oil was $130 a barrel and higher. It's less than half of that now, so that decline in energy prices kind of diminishing the urgency for some folks on this, for some companies to buy in.

But he says he's adamant about cutting our dependence on foreign oil, and he's willing to work with Canada. It's all about this North American energy plan to him, Heidi. So, I wouldn't be surprised to hear him tell us in the next few months where we'll see those wind farms, and I'll bet some will be in Canada and also some states in this country. Heidi.

COLLINS: Is it crazy to think that he could tap into the billions of dollars earmarked specifically for renewable energy from the stimulus bill?

HARLOW: You would think he would be the perfect candidate, right, for money from the stimulus plan? Here's the problem. We asked his team that question. The programs, the guidelines for this haven't been defined yet.

So, there's two key provisions: one is a 30 percent cash incentives for companies like him and the other is federal loan guarantees for projects like this. They haven't been defined. They haven't been outlined. He could have really used them. So he said this is still going to happen, we just need the government to move along a little bit quicker, Heidi.

COLLINS: All right, Poppy Harlow with our "Energy Fix." Poppy, thank you.

HARLOW: You're welcome.

COLLINS: Iran's president has a message of higher and grander things in his second term, but some Iranians are try to go drown him out from the rooftops.

(COMMERCIAL BREAK)

COLLINS: The greatest election ever. Iranian president Mahmoud Ahmadinejad defending the legitimacy of his re-election while promising higher and grander things in his second term. Last night, the Iranian president had his first major televised address since his nation's voting dispute began.

(BEGIN VIDEO CLIP)

MAHMOUD AHMADINEJAD, PRESIDENT OF IRAN (through translator): It has been absolutely healthy, because people themselves held the election. They themselves took part in that, and they themselves counted the votes. You saw that in the recount, too, there was no harm made to the recount. And those who claimed --they did not provide with even one piece of document regarding irregularities or vote fraud.

(END VIDEO CLIP)

COLLINS: While the president spoke, opposition supporters took to the rooftops in Tehran, shouting, "death to the dictator."

A major player pulling out of the G-8 summit to deal with clashes back home. China's state-run media says president Hu Jintao left the G-8 to address the violence in the northwestern part of his country. Soldiers have moved into the area where ethnic violence is boiling between the Muslim minority Uighers and the Han Chinese. At least 156 people are dead after riots this past weekend. Police there have reportedly detained 1,400 people so far.

Mediation talks are set for tomorrow to resolved the political crisis in Honduras. Its ousted president, Jose Manuel Zelaya met with Secretary of State Hillary Clinton in Washington yesterday. The U.S. among nations calling for Zelaya to be returned to power. He was overthrown in a military-led coup ten days ago, and despite the violence some of his supporters have faced, they keep demonstrating. Among those speaking out, his wife.

(BEGIN VIDEO CLIP)

XIOMARA CASTRO (through translator): From here in front of the embassy, I want to thank the understand the United States government for the signs of support that have been firm. As we have seen, they do not recognize any other position that is not Manuel Zelaya (INAUDIBLE).

(END VIDEO CLIP)

COLLINS: Both Zelaya and the interim leader of Honduras, Roberto Micheletti, have agreed to meet tomorrow in Costa Rica.

We have been talking about a new report on security at federal buildings. The Senate Homeland Security Committee is hearing testimony right now. What we know is undercover investigators were able to smuggle bomb parts, including liquid explosives, past those guards at ten federal buildings.

This is some of the video from that investigation. Government Accountabilty Office. Moments ago, Mark Goldstein from the GAO was asked if funding at the Federal Protective Service was the main problem.

(BEGIN VIDEO CLIP)

MARK GOLDSTEIN, GENERAL ACCOUNTING OFFICE: A lot of the management issues have nothing to do with level of resources per se. Not having national guidance and standards for when and how to inspect guards, not having better standards...

(END VIDEO CLIP)

COLLINS: And on our blog this morning, we are asking you whether reports like this should in fact be released to the public. We want to let you know what some of those responses are. Let's head to CNN.com/newsroom. Once again, you can get on there and you can see a bit about the investigation, the details there.

One of our first comments says this. "Releasing the details of security shortcomings in government buildings is thoughtless and extremely dangerous. Who in his right mind would tell the world, including terrorist cells that seek to harm us, that our security upgrades have been proven to be flawed?"

Once again, reminding you there's a hearing with all the this information being released going on right now. Also, another blog says this. "Yes, the information should be shared with the public after the problem has been fixed."

Finally, just letting you know, there is a link available right here as well to the full report written by CNN right here. CNN.com/heidi, you can go there and share your thoughts with us. Once again, should reports like this be released to the public when we're talking about a matter of security? So, we'll look at those responses, some more of them later on.

Meanwhile, what are police investigators finding as they look into Michael Jackson's death? We'll have the latest from the investigation.

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COLLINS: Even in death, Michael Jackson is still the undisputed King of Pop. According to Billboard magazine, his albums are soaring. Fans bought more than 800,000 copies last week. And Jackson's albums currently hold all ten spots in the Top Pop catalog albums chart. That actually breaks Jackson's own record last week, when he had only eight Top Ten albums. He also has five singles in the Top Ten list of music digital downloads.

After the memorial, Jackson's body was wheeled out of the Staples Center in a golden casket.

(BEGIN VIDEO CLIP)

(MUSIC PLAYING)

COLLINS: But at this point, we do not know just where the pop star will be buried. Family and friends held a private memorial at a cemetery in L.A.'s Hollywood Hills, but sources say he won't be buried there. No plans have been announced for the Neverland ranch, either.

A question many still want answered is what killed the King of Pop? A toxicology report has been not been released. The cause of death is deferred on the death certificate. CNN's Randi Kaye has new details from the ongoing investigation.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE (audio recording): We have a gentleman here that needs help, and he's not breathing.

RANDI KAYE, CNN CORRESPONDENT (voice-over): CNN has learned disturbing new details about what precisely police investigators found when they answered the 911 call from Jackson's house 12 days ago.

UNIDENTIFIED MALE (audio recording): He's not conscious, sir.

UNIDENTIFIED MALE (audio recording): OK.

KAYE: A source involved with the investigation tells us Jackson had, quote, "numerous track marks on his arms," and that those marks, quote, "could certainly be consistent with the regular IV use of a drug like Diprivan."

Diprivan is the powerful sedative commonly used as anesthesia in a hospital. A nurse who worked for Jackson told CNN he begged her for Diprivan a few months ago so he could sleep.

Our source cautioned investigators can't say right now if a Diprivan IV drip caused the track marks on Jackson's arms. Some of the marks, the source said, appeared fresh. Others older. In fact, some of the newest marks could have been caused when emergency medical personnel rushed into the house and used their own IVs in an effort to save him.

The source would not confirm if Diprivan had been found with Jackson, but he told us numerous bottles of prescription medication had been found in Jackson's $100,000-a-month rented mansion. He described them as, quote, "dangerous drugs, similar to those found in a hospital setting." That's as far as he would go.

(on camera): As for Jackson's body, the source said he had never seen anything like it in decades of investigative work. He described it as, quote, "lily white from head to toe." Was it caused by the disease Jackson said he had? We don't know.

(voice-over): Another source with knowledge of the case described him as having, quote, "paper-white skin, as white as a white T-shirt." He also told me that his scalp was bald, that the pop star had no hair. That may have been a as a result of injuries Jackson received when his hair caught fire while making this Pepsi ad years ago.

This source also said Jackson's veins were, quote, "collapsed in both arms, suggesting frequent intravenous drug use." His final note: the body was emaciated, despite the vigor Jackson showed on stage during his final rehearsal just 36 hours earlier.

Randi Kaye, CNN, Los Angeles.

(END VIDEOTAPE)

COLLINS: In just a moment, we'll check in with Jacqui Jeras. The weather across the country -- hot. Back in a moment.

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COLLINS: Jacqui Jeras is standing by with the hot weather across the country, but that's not really accurate. Texas, right? JACQUI JERAS, AMS METEOROLOGIST: Texas, Oklahoma. It's expanding over the next couple days. It's covering a lot of real estate -- of course the biggest real state, Texas. They do everything big, right? And the temperature is not the exception. Today, 100 degrees in Dallas. We also have an air quality alert in effect here, as the high pressure has that sinking air in place and just kind of develops that smog in that area.

We do have some heat advisories in effect, too, from the Austin area, extending down toward the valley area. Cool across the Northeastern quarter, though. Only 67 in Boston. They would love to see some of that heat. Heavy rain has been moving in from the Gulf of Mexico and moving across parts of Florida. Check this out. From Gainesville to Jacksonville, about an inch or two of rainfall so far, another one to two on top of that today. Also, some severe storms in the upper Midwest. Heidi?

COLLINS: Yuck, it is hot. Thank you, Jacqui.

The federal government may fall way short again in a hurricane causes major damage. The government has the option to buy 38,000 temporary homes to help victims of natural disasters. One hundred and forty-five thousand were needed after Katrina and Rita. The House Homeland Security Committee is hearing testimony right now. FEMA's administrator is telling the committee the agency has made progress, but still has a lot to work.

I'm Heidi Collins. CNN newsroom continues right now with Tony Harris.