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Possible Tax on the Middle Class; Deadliest Month in Afghanistan; Three Americans Detained in Iran Named; Gulf War Navy Pilot Found Buried in Iraq; Cutting Edge Healthcare for Less; Continental Flight Diverted; Fight for Michael Jackson's Estate; Ayatollah Endorses Ahmadinejad; Keeping Cash for Clunkers Alive; Baghdad's Top Traffic Cop

Aired August 03, 2009 - 09:00   ET

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


HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. I'm Heidi Collins. We have a busy day right here in the "CNN Newsroom," so I want to get started right away on this Monday, August 3rd.

In fact, tight off the bat, White House Correspondent Ed Henry is going to be talking about some promises made and possibly broken now. Middle class Americans may actually be facing higher taxes after all.

And then on to Afghanistan. Our Ivan Watson's going to be focusing on the growing death toll of U.S. troops and their allies, as well, pointing to signs that the worst could be far from over.

And also today, the Michael Jackson case ends up going on to court. At stake, his children and almost everything he owns.

But first, want to get to this story for you. Scary moments for passengers on board a Continental Airlines flight. Airport officials confirmed severe turbulence forced it to land at Miami's Intercontinental Airport.

Now, the airline says 28 passengers were treated at the scene and seven were taken to hospitals. Continental says there were 168 passengers and 11 crew members on board.

The plane was on its way to Houston from Rio de Janeiro in Brazil. Continental says the plane has left Miami, was on the way to Houston as we speak.

We're going to be talking with Lieutenant Al Conciera (ph) from the Miami-Dade Fire Rescue Team coming up just about 30 minutes from now. We'll find out more about what has happened there.

Meanwhile, remember President Obama's campaign pledge that there will be no new tax hikes for the middle class? Well, that was then, and this is now. Over the weekend, the Obama White House said it can no longer guarantee the middle class will be spared.

(BEGIN VIDEO CLIP)

TIMOTHY GEITHNER, TREASURY SECRETARY: We have to do what's necessary, remember the critical thing is people understand when we have recovery established led by the private sector and we have to bring these down -- deficits down very dramatically, we have to bring them down to a level where the amount we're borrowing from the world is stable at a reasonable level.

And that's going to require some very hard choices and we're going to have to try to do that in a way that does not add to the -- unfairly to the burdens that the average American already faces.

LARRY SUMMERS, DIRECTOR, NATIONAL ECONOMIC COUNCIL: There's a lot. There's a lot that can happen over time. But the priority right now, so never a good idea to absolutely rule things, rule things out no matter what.

(END VIDEO CLIP)

COLLINS: Let's get the very latest now from White House correspondent, CNN's Ed Henry, this morning.

Hey, good morning to you, Ed.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning, Heidi.

And what's interesting, of course, is that on one hand, they're stating the obvious. Both of these top economic officials that it's difficult to shut the door on any option, but on the other hand, when you have the president's top two money men, basically presented with the question about whether the middle class may face increased taxes, a real hot button.

COLLINS: Yes.

HENRY: The fact they both left the door open, it certainly sounds like a trial balloon, certainly with all the spending that's going on in Washington right now, it seems almost inevitable that some taxes will be raised.

The question, really, is how do you define middle class, though? The president clearly drew a line in the sand during the campaign. Let's take a listen to what he said and what he promised.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If you make under $250,000, you will not see your taxes increase by a single dime. Not your income tax, not your payroll tax, not your capital gains tax, no tax.

(END VIDEO CLIP)

HENRY: Now the president recently reiterated, this is a couple of weeks ago, that he still stands behind that promise. So, obviously the devil is going to be in the details, exactly what kind of a potential tax increase will the Obama administration be talking about?

You can bet there'll be a lot of pressure from Republicans to get some more answers, some conservative Democrats going home now for August town hall meetings also could be on the defensive, Heidi.

COLLINS: Yes, going to be hearing from their constituents, I bet. How might this complicate, though, Ed, the president's push for health care reform now?

HENRY: Well, it could complicate it because one of the pillars of the president's case is that health reform will lower costs in the long-term. As you know, there have been various reports by independent experts like the Congressional Budget Office suggesting the short-term, though, costs could balloon.

How are you going to pay for those increased costs? It certainly looks like and it sure as looks like the administration was pointing to the possibility of increased taxes. The president just has not laid out specifics yet. So this could really put more pressure on this White House to finally get more specific about what health reform will really mean for people's bottom line, Heidi.

COLLINS: Yes. I'm sure you're aware of the president's overall approval rating, those numbers have been going down pretty consistently. What's the White House been doing to counteract that? Especially when we're talking about issues of the economy and health care reform?

HENRY: Well, they stress that, look, historically when you look at it, his numbers are still pretty good, in our CNN latest polling sort of in the mid-50s. He had been in the 60s to 70s in the early days, obviously that was sort of the stratosphere, maybe he's coming back down to earth, but he's still more popular than any politician in the country right now in either party, number one.

Number two, what they're doing specifically, is the president going out on the road a lot more. Remember I was at that supermarket in Bristol, Virginia last week, tomorrow I'm heading to Elkhart, Indiana ahead of the president. Wednesday, he's doing another event in Elkhart.

That was the first place that he went outside the beltway in the first 100 days. Now as we come up on the second 100 days here coming up later week, that anniversary, the bottom line, the president wants to go back to Elkhart, the center of the country where unemployment has been around 19 percent there because it's the capital of the RVs.

COLLINS: Yes.

HENRY: Where all of the RVs are sold in this country. Particularly hard it was people not buying RVs, not taking vacations this summer. So what they're trying to do is get out there, hit the road, and talk to real people, Heidi.

COLLINS: All right. We'll be watching very closely. Ed Henry from the White House this morning.

CNN's most recent poll of polls, as we were discussing here, shows the overall approval rating has dropped. So what's your opinion of the president's performance? We'd like to hear from you. Let's just go to our blog at CNN.com/heidi. Or you can always call in your thoughts to "Hotline to Heidi." That number on the screen there, 1- 877-742-5760.

Later on this morning, we expect to hear from the president. He's due to make remarks on the nation's new GI bill, that event scheduled at 11:05 eastern. And we, of course, we'll carry his comments live for you.

July was the deadliest month for coalition forces in Afghanistan, and now this month off to a violent start, as well. Nine troops killed over the weekend and a deadly attack on police this morning.

Our Ivan Watson is joining us now live from Kabul with more on this.

Ivan, good morning to you.

IVAN WATSON, CNN CORRESPONDENT: Good morning, Heidi, it was a deadly attack this morning in Afghanistan's largest western city, (INAUDIBLE). There Afghan security forces tell us that around 7:00 in the morning a roadside bomb hit a passing convoy that a police chief, an Afghan police chief was riding in.

And that explosion killed 12 people. It wounded the police chief, killed two of his body guards, and killed 10 Afghan civilians and then injured dozens of other Afghan civilians as well as security forces.

And this, of course, coming after a bloody weekend for U.S. and NATO forces in Afghanistan. Nine killed, six American troops in southern and eastern Afghanistan as well as two Canadian soldiers and one French soldier, and this coming after the deadliest month yet of this eight-year war when some 775 NATO Americans and other NATO troops were killed last month here in Afghanistan, Heidi.

COLLINS: So, Ivan, this country's gearing up for an election. I mean it's going to be a very deal for the people there, but I wonder, are they going to feel secure enough to go out and actually vote?

WATSON: Well, this is a big problem. We've talked to the independent election commission here and they concede that of the 7,000 polling stations around the country, up to 700 of them are not yet considered safe enough for voting to take place in them.

That's 10 percent, and mostly that's in the south and east of the country where the Taliban insurgency is raging. Now in addition to this, you have decades of civil war and war lordism in Afghanistan. So we've already seen other forms of violence that are sometimes between rival groups.

The election commission says that three of the more than 3,000 provincial council candidates have been killed in recent months in the run-up to this election and we also know that last week, one of the campaign managers for one of the top presidential candidates, Dr. Abdullah Abdullah, one of his campaign managers was attacked. He was seriously injured, and one of that man's body guards was actually killed.

So, there is going to be this backdrop of violence amid the elections. I do have to point out, though, in 2004 and 2005, there were previous presidential and parliamentary elections, there were threats from the Taliban as we're hearing again this time, but the elections did go ahead, Heidi.

COLLINS: All right. Ivan Watson, staying on top of it all for us. We will be following the elections, obviously, closely with you. Thank you, Ivan.

We now know the names of the three American hikers who were being held in Iran. They were arrested on Friday after apparently wandering from their charted course in Iraq and drifting across the unmarked border into Iran.

We'll get the details now from CNN national correspondent Susan Candiotti.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): Kurdish officials have identified the three Americans being detained as Joshua Fattal, seen here on his Facebook page, as well as Shane Bauer, and Sarah Shourd, both appearing on Internet Web sites.

They've been staying at a hotel before setting out to a scenic area for a hike in the mountains near Ahmed Awaa in Iraq. Despite warnings to be careful, they apparently strayed into Iranian territory across an unmarked natural border with northern Iraq.

A friend who stayed behind at the hotel because he was ill said he last heard from them Friday. They called to tell them they were surrounded by Iranian soldiers during their hike.

Fattal's mother who lives in Pennsylvania confirms their captivity, but is declining requests for on-camera interviews. She spoke with CNN Radio by phone.

LARA FATTAL, MOTHER OF DETAINED U.S. HIKER: My husband and I are eager for the best welfare and conditions for our son, Josh, and for the other two companions he's with. And that is our only concern. His welfare and the best conditions for him.

CHRIS FORAKER, FRIEND OF JOSH FATTAL: Josh is a very curious person and he is interested in the world. He wants to eat the world whole.

CANDIOTTI: Friends say the three have spent time or have lived in western Europe and the Mideast and are seasoned travelers. Sarah Shourd appeared on a Web site that mentions her travels. She's also named on Shane Bauer's Web site. He's a photographer, the American hiker, Shon Meckfessel, who stayed behind because he was ill, is now at the U.S. embassy according to his grandmother. Meckfessel is a graduate student at the University of Washington. The State Department says it has asked the Swiss consulate in Iran to try to make contact with the detained Americans because the U.S. itself has no diplomatic relations with Iran.

(on camera): It's a very sensitive situation, especially given the strained relations between the U.S. and Iran.

Susan Candiotti, CNN, New York.

(END VIDEOTAPE)

COLLINS: Also in Iran now, a key endorsement for the disputed president. Earlier today, Iran's supreme leader formally backed Mahmoud Ahmadinejad as he prepares for his second term. Two former presidents boycotting the ceremony and then widespread claims the presidential election was fixed.

The outrage ignited weeks of bloody streets protests across Iran. It also prompted international outcry and a demand for new elections. Iran's government has refused, it says the elections were fair and the votes were properly counted.

An 18-year-long mystery solved. A discovery in the desert finally revealing the fate of the first American lost in the 1991 American Gulf War.

ROB MARCIANO, AMS METEOROLOGIST: Rough weather again yesterday for parts of the northeast with some damage in the atmosphere, recharges for today. We'll have complete weather forecast when the CNN NEWSROOM comes right back.

(COMMERCIAL BREAK)

ANNOUNCER: Covering the angles, uncovering the details, see for yourself in the CNN NEWSROOM.

COLLINS: He was the first American lost in the 1991 Gulf War, but no one knew for sure what happened to Navy pilot Michael Speicher until now.

Pentagon correspondent Chris Lawrence tells us how troops finally found his remains.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): Captain Scott Speicher's children were toddlers the day he disappeared. Now his remains are coming home to college students.

A nearly 20-year mystery. Was he captured? Tortured? All this time, the answer was buried in the Iraqi sands and solved by a single tip.

MIRIAM NOVELLY, HIGH SCHOOL CLASSMATE: It's a bittersweet ending. I mean, it's great that we have finally accomplished an ending. But it is bittersweet. LAWRENCE: Last month, an Iraqi citizen told American troops about the crash site. When the marines arrived, another Iraqi said he was there when veterans Bedouins found Captain Speicher already dead and buried his body.

Searching the site, U.S. troops found multiple skeletal fragments and bones. And when military investigators compared Captain Speicher's dental records with the recovered jawbone, it was him.

SEN. BILL NELSON (D), FLORIDA: The whole family is just so grateful that the Navy stayed on this.

LAWRENCE: But the military made mistakes, starting hours after Speicher was shot down when the Pentagon declared him dead.

DICK CHENEY, FORMER DEFENSE SECRETARY: The total U.S. losses are one aircraft and one individual.

UNIDENTIFIED REPORTER: The Pentagon has identified a United States Navy pilot as apparently the first U.S. serviceman missing in action in the Persian Gulf War.

LAWRENCE: Some in the military thought Speicher had ejected and might still be alive. In 1994, they proposed a secret mission to survey the crash site, but according to senior defense officials in the room, chairman of the Joint Chiefs, Gen. John Shalikashvili, scrubbed the plan and said, quote, "I do not want to have to write the parents and tell them their son or daughter died looking for old bones."

In 2001, the Pentagon changed his status to missing in action, and there were accusations he was being held captive by Saddam Hussein. After the invasion of Iraq, some thought they found Speicher's initials scratched into the wall of an Iraqi prison. And investigators even excavated a grave site in Baghdad, but it was not him.

Now the vigils can end, but one fact remains.

NELSON: We walked away from a downed pilot. It was done by mistakenly declaring him dead and then they didn't go and search for him and that was a mistake. And that is very important that we never repeat that mistake again.

(END VIDEOTAPE)

COLLINS: Chris Lawrence is joining us now live from the Pentagon with more on this. So, Chris, we understand that the remains have been found, but does this answer all of the questions for the family?

LAWRENCE: Not at all, Heidi. You know the family's got to be wondering is there any chance at all that Captain Speicher may have survived that initial crash even for a little while and was -- did he die right there at that crash site? Or was he brought there and buried later?

COLLINS: Yes.

LAWRENCE: And finally, you know, why did the Bedouins bury him? On the last question, you know, we can speculate that Muslim law does demand that a body be buried promptly after death. So, it's possible the Bedouins may have buried him out of respect for his body.

As for the other question, the family's going to get a classified briefing from the military today or tomorrow that can possibly ask some of those. But all of that said, they are very, very thankful for the Navy, for the marines who did not give up and kept searching for all of those years.

COLLINS: Exactly. All right, Chris Lawrence, our Pentagon correspondent this morning. Thank you, Chris.

LAWRENCE: Yep.

COLLINS: Heading over to the Severe Weather Center now. Rob Marciano is standing by. You have windy and hot behind you.

(WEATHER REPORT)

COLLINS: I was going to say, that was my big headline, right? I think you said can't never, that's a double negative.

MARCIANO: I might could have said that.

COLLINS: Yes. Sure. (INAUDIBLE) All right, Rob. We'll check back with you later on. Bye.

Making health care better and cheaper, sound impossible? Well, one group says it can be done. We'll show you how they're doing it.

(COMMERCIAL BREAK)

COLLINS: Cutting edge healthcare for less. It's what President Obama is pushing for. But is it really possible?

National political correspondent Jessica Yellin shows us a healthcare group in rural Pennsylvania proving it can be done.

(BEGIN VIDEOTAPE)

JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: Cardiologist Peter Berger is looking inside a patient's heart and getting graded on his work.

DR. PETER BERGER, CARDIOLOGIST: We're in the heart. And we're taking some pictures.

YELLIN: The grade is based not just on the success of this procedure, but on the overall care his patient receives. Sometimes up to months later.

DR. GLENN STEELE, GEISINGER HEALTH SYSTEM CEO: Everybody that's involved in the care is focused on the outcome, not their piece of the action.

YELLIN: It's part of a radical new approach to medicine that's made Geisinger Health System an Obama administration poster child for reform. Geisinger has cut costs and improved quality by standardizing how procedures are done, developing a team approach, and emphasizing preventive and follow-up care.

STEELE: All of those things are thought or have been proven to be related to the probability of you having a perfect outcome.

YELLIN: Some of their innovation? Checklists. The medical team follows steps to ensure there are no mistakes, like making sure the right patient is on the table. Another innovation, a warranty. Instead of charging for each test or procedure, patients can pay a flat fee for treating their heart condition. If there are any complications, the patient gets follow-up care for free.

BERGER: This warranty system just provides additional incentive for us to do the right thing.

YELLIN: A third innovation, patient partnering. A nurse is assigned a patient with a chronic condition and checks in regularly. Nurses can even get a readout of a patient's weight every day. If he gains weight.

JAMES CONNELLY, PATIENT: Dan's going to be on the phone the next morning looking for an explanation.

YELLIN: According to Geisinger, partnering has led to a huge decrease in hospitalization. Dr. Berger says these innovations had helped make his patients healthier. Geisinger says in some instances, they've safe saved up to 7 percent a year.

(On camera): The big question is, can this be duplicated on a national scale? The doctors at Geisinger say some parts more readily than others. For example, it will likely be easier to expand the use of electronic medical records and harder to get primary care doctors, nurses, and specialists to work together and change their approach to medical care.

Jessica Yellin, CNN, Washington.

(END VIDEOTAPE)

COLLINS: Think your morning commute is bad? Well, at least you're not stuck in Baghdad's rush hour. We'll meet the man many Iraqis trust to get them where they're going.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: Well, July was a hot month on Wall Street. And we don't mean the temperature. Consider this, the Dow surged more than 8.5 percent last month. Susan Lisovicz is at the New York Stock Exchange now with a look at what to expect today and for the month of August. Opening bell just a few seconds away here, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Heidi. It's time.

COLLINS: Wow.

LISOVICZ: It's time.

COLLINS: She's got the cow bell out. I'm so happy.

LISOVICZ: Because the Dow and the S&P 500 recorded their best July in at least 20 years. And today, the first trading day of August, futures are set to rally thanks to strong gains overseas.

Investors encourage that Europe's Barclays Bank posted a 10 percent jump in profit for the first half of the year due to strength in investment banking. Unfortunately oil prices are also rallying up $1.50, trading over $70 a barrel. That's what happens when things are improving, or at least there is a sense that things are improving.

Traders, I knew, and manufacturing in China is expanding and here at home, we're expecting to see an improvement in U.S. manufacturing. That is something that has been under terrible pressure.

COLLINS: Yes.

LISOVICZ: At the top of the hour. Also, Ford Motor, set to deliver a sales increase this afternoon. Let me repeat that.

COLLINS: That's pretty wild.

LISOVICZ: A sales increase for one of the Big Three. A Ford executive tells CNN the automaker will report an increase in July sales, marking the first year-over-year hike since the financial crisis began two years ago. Ford says conditions began to improve in June and carried through to July. Of course, Cash for Clunkers helped out, too.

There are changes in the board room at Apple, Google CEO Eric Schmidt resigning from Apple's board of directors. Google competing directly with more of Apple's core businesses as Steve Jobs said in a statement that there could be potential conflicts of interest.

And check out the first minute of trading, Heidi. The Dow Industrials right now up 72 points, 0.75 of a percent. The NASDAQ and the S&P 500 higher, as well.

Of course, corporate earnings, a big catalyst for what we saw in July. 2/3, Heidi, of the companies in the S&P 500 have now weighed in with their quarterly report cards. About 3/4 of those reporting have exceeded forecasts. We get more corporate earnings this week, but you know what the headline of the week is. It comes on Friday with the July jobs report.

COLLINS: Yes, which is going to tell us a whole lot more about the bigger picture obviously.

LISOVICZ: No question about it.

COLLINS: All right. Susan Lisovicz, watching all the numbers. Thanks, Susan. We'll check back a little bit later on.

LISOVICZ: You're welcome.

COLLINS: Turning now to the story we told you about a little bit earlier. A Continental Airlines plane forced to land in Miami because of severe turbulence. It was actually on its way from Rio de Janeiro to Houston. Twenty-eight people were treated at the scene and seven were taken to area hospitals. Lt. Elkin Sierra from the Miami-Dade Fire Rescue Team is actually on the phone with me now to give us an update here.

Lieutenant, if you can hear me, can you talk to us a little bit more about the injuries? It is somewhat rare for us to hear about serious injuries from turbulence.

LT. ELKIN SIERRA, MIAMI-DADE FIRE RESCUE (via telephone): Right. As we said, we counted 26 patients that were assessed, four of them being serious. Now, we're not sure of these four serious injuries were direct traumatic injuries, or if they were pre-existing medical conditions that were exacerbated by the scare. For example, somebody with a heart condition may have developed chest pain and an abnormal blood pressure or pulse due to the scare. Yet, not suffer injuries.

COLLINS: Got it. Understood. And we're just looking at some of that video there. Kind of unusual. They had to use one of those sky chef trucks to help offload some of the injured.

SIERRA: Well, this definitely came in as a great benefit for us, because this applied a platform, a stable sturdy platform with which to lower the crews and of course the patients down to the ground level where awaiting rescue transport units were standing by. And definitely more safe than bringing them down the stairs.

COLLINS: Yes, yes, sure. Hey, is anybody saying whether or not these particular passengers and as you say the four serious injured, I am interested in even though they are, you know, potentially with pre- existing conditions, who knows at this point. But about seat belts and whether or not these injured were able to have their seat belts on at the time?

SIERRA: It's not clear how many patients -- of the patients that were injured had their seat belts on or didn't have them on. I know they were jolted sideways, up and down the corner for the past -- at the airport, and the turbulence did last about 10 seconds according to one of the passengers and the passengers were relieved when the plane once again stabilized.

COLLINS: Yes. And that can feel like an eternity when you're in an airplane, obviously.

SIERRA: Sure. COLLINS: Any idea of crew members were injured? Because I guess we have 11 crew members, which probably means about nine flight attendants.

SIERRA: Well, I'm not sure if they were injured with minor injuries, but on the 14 that were transported, none of those were crew members.

COLLINS: OK, understood. Now, here's my big question for you. What is the status of that actual aircraft? Because we're hearing that it is going to go on to Houston. I'm just wondering if it has taken off. If there are some delays. If they are going to use the same crew to complete this flight?

SIERRA: That I'm not aware of. I know that the passengers did clear customs here in Miami, but I'm not sure if they're going to return to the same aircraft or change aircraft.

COLLINS: OK. So at this point, we will continue to follow this story obviously, because we're trying to figure out what will happen with all of the people. 168 people on board originally. So we will stay on top of the story and bring everybody the latest.

Lieutenant Elkin Sierra, sure do appreciate your input on this one.

SIERRA: All right.

COLLINS: And also, I want to head on over to Rob Marciano, because when we hear turbulence, I mean, we obviously think weather. Apparently this was at 38,000 feet, somewhere near the Dominican Republic.

ROB MARCIANO, AMS METEOROLOGIST: Yes. And it's interesting to see what this plane was doing when it changed its destination from Houston Intercontinental to Miami.

We've loaded up our flight explorer software which gives you an idea of the track. Over Puerto Rico at 36,000 feet, and then also, you see the destination is Intercontinental, but at about there where the Turks and Caicos Island is, it switches to Miami and then as it gets over to lower Bahamas, it goes from 38,000 feet and then makes a quick descent into the Miami International Airport. So there you see what happened there.

So we're assuming that the turbulence happened somewhere around there where that damage was done, as far as the satellite is concerned. There's not a whole lot going on except right in through here, the national hurricane center has analyzed a tropical wave. There's not a whole lot of thunderstorm activity there, obviously, but there is a disturbance in the atmosphere that certainly could make for some up and down motion.

And as you know, Heidi, all you need is a little up and down motion for that turbulence to happen. And this is probably what we call clear air turbulence, meaning there's not a whole lot of convection around it, but certainly that up and down vertical motion will throw a plane up and down with those air currents, and that's probably what happened.

COLLINS: Yes. And regardless of the size. I mean, we haven't mentioned yet, the 767, I mean, it's not a small aircraft. So obviously it had to have been something pretty severe. So, all right, Rob, we're going to stay on top of this one. We'll check back with you a little bit later on. Thank you.

MARCIANO: OK, sounds good.

COLLINS: Michael Jackson's mom will be in court today to fight for control of her son's estate. Katherine Jackson will appear before the same judge who is expected to give her permanent guardianship of the singer's children.

CNN's Ted Rowlands is joining us now live from Los Angeles with the very latest.

Ted, good morning to you.

TED ROWLANDS, CNN CORRESPONDENT: Good morning, Heidi. A very busy day here in court in Los Angeles. First up on the docket will be this guardianship arrangement that has already been dealt with between Debbie Rowe, Michael Jackson's former wife and the mother of two of Michael Jackson's children and Katherine Jackson. They basically hashed it out on their own, and it's expected that the judge is going to ratify it. And basically what the plan is is that Katherine Jackson will have custody of the Jackson children, Debbie Rowe will be given some visitation down the line when appropriate for her two children.

That isn't going to be a big deal, but the other side of this equation is the estate. And that is expected to require this judge to make some decisions because as well as the parties got along on the guardianship issue, it's the other story on the estate.

Basically, Katherine Jackson is going to ask this judge for more involvement in the estate, maybe going as far as asking to be a co- executor. It's not likely that she has footing to do that, but she's really toeing the line here because this will that Michael Jackson left is a no contest will.

If you contest the will, you can say this will is bogus. You're out. So what they're doing is they're trying to talk to this judge and try to win little battles here in this overall war. They're going to ask for a stipend for Katherine Jackson and the children. And it should be interesting to see what this judge does. There'll have to be some decisions made. The estate estimated worth about $500 million. We should get more detailed information today during this hearing.

COLLINS: All right. Very good. Ted Rowlands, appreciate it. Thanks.

Iran's President Mahmoud Ahmadinejad denies there is a rift between him and supreme leader Ayatollah Ali Khamenei. But their body language could be telling a different story. We are comparing the endorsement ceremony four years ago with this one today.

International correspondent Reza Sayah is at our Iran desk with more on this.

All right. So, Reza, what were we seeing there?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Well, Heidi, you don't have to be a body language expert to tell that the interaction between the supreme leader Ayatollah Khamenei and President Ahmadinejad was very different from what we saw four years ago. Just didn't have the same vibe.

COLLINS: There was none.

SAYAH: We're going to -- we're going to show it to you, and you can decide. This was the scene 11:30 a.m. local time in Iran. The supreme leader giving the president a document. And there you see a little hesitation and then President Ahmadinejad kissing the supreme leader on the shoulder. There you see it in slow motion, that hesitation there. Kind of an awkward moment. And the kiss on the shoulder in Arab culture, not Iranian culture, but an Arab culture, that's a sign of loyalty.

Now, let's go back to 2005, the same ceremony. That was the first time the president was elected, and there you see again, him, getting up. There was former President Khatami, and here comes the document. And there you're going to see the president kissing the supreme leader's hand, the first president to do that, and then you see a warm embrace in an exchange. Again, very different from what we saw today.

Now, it's difficult to say exactly what happened today, but there's all this talk about a rift between these two men that emerged a couple of weeks ago. President Ahmadinejad dismissed that riff. He said this man like my father, but interesting to see the contrast today. This ceremony coming almost two months after the disputed vote on June 12th. The opposition leaders still saying that vote was rigged. And no shows today were the big names in the opposition, the former presidents Rafsanjani, Khatami, no-shows. Also, Mir Hossein Mousavi, a no-show, as well.

Heidi?

COLLINS: Yes. Very, very interesting.

All right, Reza, let us know if you find out anything else on that.

SAYAH: Will do.

COLLINS: Appreciate it.

Cash for clunkers. Does the program have a future? Or will the Senate put the brakes on it? (COMMERCIAL BREAK)

COLLINS: Keeping the cash for clunkers program alive. The Senate is expected to vote today on a $2 billion bill to keep it going. People have been flocking to car dealers to get as much as $4,500 back when they trade in gas guzzlers for somewhat more fuel- efficient cars.

Christine Romans is here now with the very latest on this.

OK, so Christine, we were talking about this on Friday, whether or not they were going to be able to get more money for the program because of this enormous response. And?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And the House approved $2 billion more late Friday, and the Senate has to do it today. $2 billion, Heidi, that they would take from energy stimulus already in that stimulus to apply to this program to hopefully keep it alive. And the White House says if the Senate doesn't approve this, then this will expire by about the middle of the week. And we know, Heidi, that it has been incredibly popular, even over the weekend, even with some of the dealers associations saying hold on, wait for the money to be appropriated before you do anymore of these deals.

We saw dealerships that were packed. We saw people lining up to do this, to get this done, to get their Junker, you know, turned in.

I want you to listen to what one cash for clunker customer said in San Francisco.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I traded in a car. I got $4,500 for a car I paid $4,000 for four years ago. It had 220,000 miles on it. So I think I made a great deal.

(END VIDEO CLIP)

ROMANS: That's pretty impressive, right? 220,000 miles --

(CROSSTALK)

COLLINS: I never get those deals.

ROMANS: Well, now, Chrysler this morning is saying it's debunking some reports that it's not going to have its $4,500 incentive anymore on top of the cash for clunkers. Chrysler says no, you bring a clunker into us, you buy a new car. There's up to $4,500 more in incentives for you. So, this apparently is a good time to be a car buyer with an old gas guzzler you want to get rid off. And that shows the popularity of that program, Heidi.

COLLINS: Yes. No question. Remind me, again, the money -- where is it coming from?

ROMANS: It's coming from the stimulus. And now, think of this. The whole stimulus, $787 billion, this is just a very small sliver of it. It's 0.38 percent would be -- a $3 billion cash for clunker deal. And it shows you kind of what we were talking about the beginning of the stimulus. Some people were saying the stimulus was unfocused. It was unwieldy. It was big. It was this monster. How do we know how it was going to work?

But some economists have been saying all along, look, you have to be diversified, because we're not quite sure which different parts of this are going to strike a chord in the economy and really be a boost into the economy. And we can see that this will be.

We'll hear from Ford that has had its first monthly sales growth in two years, and a lot of that is due to things like cash for clunkers program.

COLLINS: Yes, very interesting. So there are still chunks of money that have not been spending could be put into things like this.

ROMANS: Right. Exactly.

COLLINS: Clearly. All right. All right, Christine, we'll keep our eye on it. Thank you.

ROMANS: Right. Bye-bye.

COLLINS: Have the second 100 days of the Obama administration been days of change or days of frustration? Let your voice be heard. Cast your vote now at cnn.com/reportcard. Then get the results from CNN's "NATIONAL REPORT CARD," Thursday night, 8:00 Eastern.

If you've ever gotten a ticket, you don't have to explain why. Traffic cops don't get much love in this country. But it is a different story in Iraq, where many depend on this man every day to cut through the Baghdad gridlock.

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COLLINS: Simmering tension in Nigeria, days after more than 700 people died in clashes between Islamic militants and government security forces. The fighting started in the Muslim-dominated north of West Africa's most populated nation. The Red Cross says hundreds of bodies are being placed in mass graves to them from being exposed to the heat. About 36,000 people were displaced during the attacks. Officials say almost all of them have returned to their homes.

Cooler weather helping firefighters battle this on the Spanish Canary Island of La Palma. A pair of forest fires burning since Friday. Look at that.

The Associated Press reports 7,400 acres burned so far. About 4,000 people had to be evacuated over the weekend. Dozens of homes and some businesses have now been destroyed. Officials say someone may have started these fires.

Well, if you think the traffic around Los Angeles or Washington or Atlanta is bad, try the commute in Baghdad. Phil Black introduces us to a man helping drivers get from point A to point B in Iraq's capital.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT (voice-over): Rarely do traffic police officers anywhere inspire this much affection, or so much respect. "It's a great honor to meet you," this man says.

General Ammar Al-Khayat has been a traffic officer in Iraq for 23 years. Over the last 18 months, he's also become a television celebrity. General Ammar is Baghdad's traffic guru. The old roads and soaring car ownership, the traffic in Baghdad is pretty much always terrible.

General Ammar tells the audience of "Good Morning Iraq" just how terrible it is. He reports live from the street and the city's traffic monitoring center, using 85 cameras to make sense of the gridlock. He tells me he loves his job, doesn't care about being a celebrity, and he's just happy that people are watching and learning. General Ammar doesn't only give traffic reports. He's become a moral compass for the city's drivers, publicly criticizing their mistakes -- anybody, even the police or other officials.

"Look at this car, driving on the wrong side," he says here. "What gives him the right to break the law just because he's driving a government car?"

(on camera): Successfully navigating Baghdad's road network isn't just about convenience or getting somewhere on time. In this city, people are killed while sitting in traffic. General Ammar Al- Khayat knows this personally.

(voice-over): Last year his 18-year-old son was killed by a roadside bomb. He says his job has now become a duty.

"Some people thought about revenge when they lost loved ones," he says. But it won't bring my son back. This is why I have to keep doing this until I die. And his viewers believe he is saving lives. "When I drive, I remember General Ammar's advice and put on my seat belt," this man says. And unlikely, but effective hero in a city that needs many of them.

Phil Black, CNN, Baghdad.

(END VIDEOTAPE)

COLLINS: Well, there's an awful lot going on this morning. Our CNN crews are in place to bring it all to you. Let's get a look ahead now to both of these stories. We're waiting on Poppy Harlow and Rob Marciano.

Poppy, to you first.

POPPY HARLOW, CNNMONEY.COM: You know, I'm in New York, and we're talking about the cash for clunkers program that could face extinction, Heidi, if the Senate doesn't act soon. Will the program get $2 billion more, and what happens to all of those clunkers anyways? We're going to tell you and we're going to show you, Heidi, at the top of the hour.

MARCIANO: And I'm Rob Marciano on the CNN severe weather center. Another weekend of rough stuff, especially across the northeast. What's in store for them now as the atmosphere recharges for more severe weather later on today. Complete forecast is coming up in the next hour.

Heidi?

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: And there's a big problem with veterans of the wars in Iraq and Afghanistan coming back to the United States in an uncertain employment environment. The president today announcing a new initiative to try and help give returning veterans the training they need to get back in the job market. All of that story in a few moments.

COLLINS: All right. Very good. Thanks so much, guys. We'll check back a little bit later on.

In the meantime, I want to bring you back to the story we've been following this morning. That Continental Airline flight 128 that actually had divert. We want to go ahead and bring in -- we understand, let me update you a little bit more before we go to our guests on the phone here.

We are understanding from the Miami-Dade Fire and Rescue team that we spoke with just a little while ago that there are apparently four serious injuries. We do not know the nature of those injuries, 26 injuries in all. Originally, there were 168 passengers, 11 crew members. And the plane was heading from Rio de Janeiro, Brazil, to Houston, Texas. Had to divert to Miami because of major turbulence in the air. 38,000 feet near the Dominican Republic.

Right now, I want to go ahead and bring in Rosanna Nichols, because her son, her 13-year-old son actually was on that flight and they are now waiting for him in Houston.

Rosanna, if you can hear me, have you been able to speak with your son?

ROSANNA NICHOLS, 13-YEAR-OLD SON WAS ON FLIGHT (via telephone): Yes, ma'am. I spoke with him, and he's fine.

COLLINS: He's fine?

NICHOLS: Yes.

COLLINS: What did he have to tell you about what happened in the air?

NICHOLS: He was very scared and he didn't have his seat belt on. You know, the flight attendant was supposed to watch him, but -- and he bumped his head, but he said he's OK. The plane shakes a lot, and that's how -- that's what he told me.

COLLINS: OK. Where is he now? We're trying to get an understanding out there --

NICHOLS: He's in Miami.

COLLINS: He's in Miami?

NICHOLS: He's in Miami right now.

COLLINS: Still on the plane?

NICHOLS: No, no. They fly (INAUDIBLE), book him on another flight.

COLLINS: OK.

NICHOLS: Coming to Houston.

COLLINS: Understood. So he is just trying to get to you in Houston there, on a completely different flight?

NICHOLS: Yes.

COLLINS: Do you have any idea, Rosanna, what's happening to the other passengers? Are they rebooking all of the passengers on different flights?

NICHOLS: Yes. Everybody else. I talked to Natalia (ph), the lady that was by his side, the lady that called me from my cell phone, and she said she's going to New York in another flight. You know, they all in different flights. You know, going to different direction.

COLLINS: OK. So many people are sort of abandoning the idea of going to Houston, which was the original final destination, or they had to go on to continuing flights to where they actually lived?

NICHOLS: Yes.

COLLINS: Understood.

NICHOLS: Some of them are coming here.

COLLINS: Understood. So that was very nice. The woman who sat next to your son?

NICHOLS: Yes.

COLLINS: Was actually the one to call you on the cell phone?

NICHOLS: Exactly. As soon as they land, he called me. I was getting in, in the parking lot and he called me. He said, mama, I'm OK, but the flight I was on almost crashed. And the lady lent him the phone to call me, she's from Brazil, too, and she knew I was going to be devastated. So I was glad to hear his voice. I assumed the plane -- the flight get on the ground and -- so I called talked to my family who is Brazil and everybody.

COLLINS: Well, I'm sure you were very nervous, especially if you have heard that information before being able to speak with him.

NICHOLS: Yes.

COLLINS: Rosanna Nichols, we appreciate it very much. We're going to stay on top of this story, and we're going to turn it up as soon as we get a little bit more information about what exactly happened and what caused all of that turbulence. We've been told by our meteorologist, Rob Marciano, weather is pretty tough around the area. So we will stay on top of it and we'll bring you the latest just as soon as we get it right here on CNN.

The three Americans now being held in Iran. What were they doing before they crossed the border?

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