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Push for Global Regulation; Critical Week for President Obama; Making Ends Meet During Difficult Times

Aired September 07, 2009 - 10:59   ET

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

TONY HARRIS, CNN ANCHOR: It is Monday, September 7th, Labor Day. And here are the top stories for you in the CNN NEWSROOM.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I may have voted for McCain and Bush in the past. I wouldn't want them speaking to my students, or your students, or anybody else's students, for that matter -- their child. Politics is totally up to the family.

(END VIDEO CLIP)

HARRIS: Wow. OK. Anger stews over the president's message to school kids. Read it for yourself today.

Plus, a civilized discussion of the raw political tone.

Everybody out of the water. And how about this -- queue the "Jaws" music. Great Whites invade the waters off Cape Cod.

And a woman convicted of wearing western clothes. Her pants, too tight. Her blouse, too sheer. What happens now?

Good morning, everyone, and welcome. I'm Tony Harris.

You are in the CNN NEWSROOM, where we will quickly get you caught up on the day's hot headlines, then take the time to break down the big issues to find out why they really matter.

Leading the way this hour, President Obama facing a critical week ahead. He is trying to regain control of the health care debate, while facing the fallout over an education speech. The president spends part of this Labor Day speaking at an AFL-CIO picnic in Cincinnati. Live pictures now of Marine one.

Tomorrow, he delivers his TV and Web address to schoolchildren. And Wednesday, the president goes before Congress to try to regain momentum on the health care debate.

We are waiting to get the text of President Obama's speech to schoolchildren. The address has come under fire from conservatives. The secretary of education says keeping kids home to avoid tomorrow's speech would be silly. Critics saying they still have concerns, but Secretary Arne Duncan says the goal is simply to motivate students.

(BEGIN VIDEO CLIP) ARNE DUNCAN, EDUCATION SECRETARY: I think all of the drama, all of the hoopla -- at the end of the day, if the president motivates one C student to become a B student, one B student to become an A student, or one student who's thinking about dropping out and take their education seriously, it's all worth it.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

GOV. TIM PAWLENTY (R), MINNESOTA: There's concerns about the disruption. There's also concerns about, is this going to be done in an appropriate manner? I trust and hope that the White House will have a content that is not political, and they're not using the public school infrastructure for that purpose.

(END VIDEO CLIP)

HARRIS: Well, the White House will post the speech on its Web site. And our senior White House correspondent, Ed Henry, will read portions of the speech as soon as it is posted.

(BEGIN VIDEO CLIP)

MIKE DETRIECH, INCIDENT COMMANDER, U.S. FORESTRY SERVICE: I saw a statistic that said the Station Fire is the 10th largest fire in the state's history. So, that gives you an idea of the size of the operation and the impacts that -- of this fire.

I want to summarize by saying that yesterday, folks made excellent progress. I have some great news. Officially, the entire western perimeter of the fire from La Canada, over towards Big T, Dillon Divide, all the way up and around towards Acton and Little Rock is now officially contained.

(END VIDEO CLIP)

HARRIS: And that is good news. Fire officials briefing us on that massive wildfire near Los Angeles. They now have more than half of it contained.

Two firefighters have died in the Station Fire. It has burned almost 246 square miles and destroys dozens of homes. California Governor Arnold Schwarzenegger is offering a $100,000 reward for information leading to the arrest of the person responsible.

Afghanistan's election commission is tossing ballots from 447 polling stations. That could mean tens of thousands of votes. It's in response to charges of fraud in last month's presidential election. President Hamid Karzai is close to winning. Recent results show he's got almost 49 percent of the votes so far.

Financial regulation a hot topic at the G-20 summit in London. Treasury Secretary Timothy Geithner tells CNN he's pushing for stricter capital requirements for banks around the world. Geithner speaking exclusively with our Richard Quest. (BEGIN VIDEOTAPE)

TIMOTHY GEITHNER, TREASURY SECRETARY: We need to make sure that we have a new international accord on capital standards that constrains excess leverage in the future. That's going to be a critical part of reform, and there's very broad support across the G-20 for the kind of reforms we talked about.

RICHARD QUEST, CNN CORRESPONDENT: But they managed to avoid those the last time. I mean, the whole tenor of the crisis was they got (INAUDIBLE).

GEITHNER: You're exactly right. We waited too long to put in place more effective constraints and we made them too easy to evade. And we're not going to make that mistake.

QUEST: How easy is it going to be to get agreement on greater capital requirements for banks?

GEITHNER: It's going to be hard for some countries. It's going to be hard for some, just to be honest. But we're going to get agreement, because I think everybody knows that the damage caused by this crisis was unacceptable, and it's not tenable for any country, I think, to resist the kind of changes we need to prevent this from happening again.

QUEST: Except there's always the risk that those banks involved will go overseas or find some other way to circumnavigate.

GEITHNER: That's why you have to do it internationally. You're exactly right.

It's not enough for the U.S. to raise standards in the United States, because then the risk will just shift.

QUEST: Will you go unilaterally if you have to?

GEITHNER: We'll do what's necessary to protect the United States. But again, our judgment is -- and we think there's broad agreement around this -- is that it's better for the world for us move together.

QUEST: Will you hold out on other parts of the reform package if you don't get agreement on capital...

GEITHNER: Don't expect or need to, because, again, I thought you saw very broad support around the room for these kind of changes. And again, we need to move when the memory of the crisis, when the damage, is still acute. The memory is still searing in its impact, so the people understand why we're doing this.

QUEST: How quickly do people forget?

GEITHNER: They're going forget too quickly. But again, we're moving quickly in the United States. And I think there's a lot of will around the world to move quickly, too. The point is, we need to act now. (END VIDEOTAPE)

HARRIS: On the domestic front, Geithner says the government needs to rein in spending, but not too soon. He would not give a specific timetable for when the U.S. can stop thinking in terms of stimulus.

The stakes are really high this week for President Obama. After taking a real beating during August on health care reform, the president tries to regain control of his signature domestic issue. But before his speech to Congress Wednesday, he faces another test with his back-to-school message tomorrow.

Senior White House Correspondent Ed Henry joining us live now.

And Ed, we are awaiting the text of the president's speech. I've got to tell you something, he's probably -- this speech to the school kids tomorrow will probably be as closely scrutinized as the speech to a joint session of Congress on Wednesday.

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Who would have thunk it...

HARRIS: Yes. Who would have thunk it?

HENRY: ... as tough an audience as members of Congress, skeptical of health care reform, Tony? I think I've seen everything in politics now.

You know, this was basically what was supposed to be a very non- controversial speech, the president saying study hard, stay in school, a basic message that the Democrats or Republicans, or Independents, for that matter, could embrace. But in this current media environment, everything can be blown up, blown out of proportion.

And in this case, conservatives really pounced on some of the lesson plans that were attached to that. And I think, admittedly, White House aides will now acknowledge that that lesson plan, which is encouraging students to write up things that they admire about the president, ways they could help the president, suggested to conversations maybe this was going to cross the line into politics.

Now that lesson plan has been pulled back. So, the speech should be the focus. And the education secretary, Arne Duncan, made clear yesterday on CBS, look, nobody's being forced to watch anything.

(BEGIN VIDEO CLIP)

DUNCAN: Schools can do this, they cannot do it. They can watch it during the school day, children can watch it at home with their families. They can watch it a month from now. They could never watch it. It's purely voluntary.

(END VIDEO CLIP)

HENRY: And in order to try to douse the flames that have been fired up in recent days, the White House is planning at the top of the next hour to post the actual text of the president's speech online so that parents can look at it, decide whether or not they think it crosses any sort of political line. And if they do, then they can obviously not send their kids to school on Tuesday. But the anticipation from senior aides here is that this is pretty non-controversial and something that people will and should embrace.

We'll bring it to you as soon as we get it -- Tony.

HARRIS: Yes, can't wait for that, Ed.

And then on Wednesday, the president addresses, as we mentioned, a joint session of Congress on health care. Ed, this is really going to be a big moment for the president.

HENRY: Absolutely. You know, the bottom line is that, I think we're going to see a number of things.

We're going to see a more conciliatory tone from the president, trying to sort of dial back some of the anger we've seen in the town hall meetings, maybe make his last approach to Republicans to hope that maybe there's a bipartisan approach here. This coming from senior aides.

Senior aides also saying that they expect the president to be much more specific than he's been throughout the process. You've been hearing not just Republicans, but Democrats demanding that.

And finally, I think on the public option, he's going to push for it one more time. He's going to say, look, I still think this is the best way to keep, as he puts it, insurance companies honest, but he's also going to make clear that there's some flexibility there, because he may need to drop the public option in order to cut a deal.

I think the best way might be to put it, he's not throwing the public option under the bus yet, but it might be taped to the side of the bus, sort of rolling along the road. And if they need to cut it off the side of that bus in order to get a deal, they want to sign a bill, Tony, and they're going to do what they need to do.

HARRIS: Yes. That sounds like a plan.

All right, Ed. We'll see you at the top of the hour when the education speech hits the Web site. Appreciate it. Thank you.

And, of course, let's -- a couple of program notes here. We will carry the education speech live during the noon hour tomorrow, so you can see it and judge it for yourself. And, of course, CNN will bring you the president's address to Congress on health care reform live. Of course we will do that.

Coverage from the best political team starts Wednesday at 8:00 p.m. Eastern Time.

Millions of Americans unemployed, living without a salary. How can you make ends meet during these difficult times? Our personal finance editor, Gerri Willis, gives us a step-by-step plan. That's next. (COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: Almost seven million jobs have been lost since the recession began at the end of 2007. If you've lost your income, you know just how much harder it is to make ends meet.

Personal Finance Editor Gerri Willis is here with strategies on handling your finances if you've lost your job.

Good to see you, Gerri. What's the first step here?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey there, Tony.

Yes, your first step is really to prioritize your creditors, your bills above all your other debts. You have to keep your calm, right? That's your top priority.

If you think you're going to have trouble making your mortgage payment, make sure you get on the telephone to lenders and explain your loss of income. Now, your lender may be able to reduce or suspend your payments for a certain amount of time. And your interest rate could be cut, your adjustable rate could be frozen.

Contact a mortgage counselor at 800-251-2227 -- Tony.

HARRIS: All right. So, Gerri, what do you do if you have a lot of other debt?

WILLIS: It's time to start negotiating. Look, Tony, if you have high credit card debt, call your lender, explain the situation. More and more credit card companies are willing to negotiate.

Now, they're not just being charitable. They're trying to get out of you what you can, and you may be able to get on what they call a monthly payment plan. Your rate may be lowered, your late fees waived. And in some cases, even, your principal is reduced.

Now, if you have high student loan debt, you may be able to get a forbearance or deferment on those federal loans. In both cases, you can stop making payments for a little while. The debt doesn't go away, but interest does continue to accrue, even if you don't make payments -- Tony.

HARRIS: OK. So, Gerri, I'm up to here and beyond, I've got problems here. Where can I go for some help?

WILLIS: Yes. You know, a lot of people are like that.

And if you can't even make the monthly bills, one place to turn to, United Way at 211. That's the number you call.

They may be able to direct you to local, low-cost assistance programs if you can't make the rent, you can't make the utility bill. And according to Consumer Credit Counseling Service of Greater Atlanta, you may be directed to other low-cost services like childcare or reduced-cost medical centers.

So, there are places you can plug into. You've just got to make sure you get to them in time.

HARRIS: And you know, Gerri, these days, finding that next job is taking a lot longer about. What advice do you have about longer-term financial planning?

WILLIS: Yes. You've really got to -- you've got to know where your money goes, too. It's more important than ever for everybody to track how much money they're spending. Software like Quicken, Microsoft Money, they can help you organization yourself when it comes to savings and spending. Currently, Quicken has a free online version -- free. Free.

HARRIS: Nice. Free is for me.

WILLIS: Yes. And that's where you track all of your money on one page, and you see your retirement, your checking account, all at one time. What's more, this program will also calculate where your money's being spent, so you can see a little pie chart, it make sense, it's easy to follow.

And, of course, if you have any questions, send them to me at gerri@cnn.com. We answer those questions right here every day.

And Tony, for you, I have to tell you, Elmo -- Elmo...

HARRIS: Yes. Yes. Yes.

WILLIS: Elmo says hello to you.

HARRIS: Elmo said hello to me?

WILLIS: Yes.

HARRIS: Really?

WILLIS: Yes. Thinking about you. Thinking about you.

HARRIS: I don't think I can go on. I'll soldier forward as best I can, but I'm moved.

Gerri, thank you. Wow.

(LAUGHTER)

WILLIS: My pleasure. Yes.

HARRIS: Check out our special report. We update it all the time. "America's Money Crisis," that's at -- did you hear that? Elmo said hello -- at CNNMoney.com.

And here is the video of the day. You ready?

The gloves come off at a lacrosse game. This is really getting out of hand. The football stuff last week, this at a lacrosse game in Canada. A game just full on, erupting into an all-out brawl.

We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: All right. Let's do this -- let's get to our top stories.

Crews are scrambling to reopen the Bay Bridge linking Oakland and San Francisco. Live pictures now.

Good. Good. Good. Good. Good.

Workers are stumbled on a two-inch crack in a steel link during a seismic upgrade this weekend.

(BEGIN VIDEO CLIP)

BART NEY, CALTRAN SPOKESPERSON: Again, worked all through the night. The materials arrived yesterday by plane. They were able to lay them out, they were able to inspect them. They passed inspection.

We were able to go through the process of measuring the area, taking all of the dimensions, doing the modeling we needed to do. And the work has started on actually placing the saddles that we're going to be using and the rods that we're going to be using for the repair.

(END VIDEO CLIP)

HARRIS: Hey, Bart. Thank you very much. Appreciate it.

The bridge carries 260,000 vehicles a day.

That massive wildfire near Los Angeles is now more than half contained. The Station Fire has burned almost 246 square miles, destroyed dozens of homes, and killed two firefighters. A thousand -- make that $100,000 reward is being offered for information leading to an arrest.

German Chancellor Angela Merkel is calling for a thorough investigation of Friday's NATO airstrike in Afghanistan. That attack ordered by a German commander killed at least 90 Afghans. It occurred as Afghans were siphoning fuel from two tankers that had been hijacked by the Taliban.

Our Anderson Cooper takes you inside Afghanistan all this week. "Live From the Battle Zone" starting tonight. Don't miss this special "AC 360" at 10:00 Eastern.

(COMMERCIAL BREAK)

HARRIS: Our Ali Velshi is on the road in the CNN Express. He is holding his own mini town halls. Right now, he is driving through Wisconsin on his way to Chicago.

One of his last stops was in a suburb of Kansas City, where he asked about the impact of the town hall meetings on health care.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: What's your view on this?

UNIDENTIFIED FEMALE: I think it is too fast. I think time needs to be taken out to educate everyone, as many people in America. I think there needs to be a forum held to educate people as far as what this whole thing is about.

VELSHI: Isn't that what those town halls were supposed to be?

UNIDENTIFIED FEMALE: Supposed to.

VELSHI: What was your general impression about how that went down?

UNIDENTIFIED MALE: One of the fundamental problems to the town halls they were highly politicized. There was an agenda. Whether you're a Democrat or Republican, Libertarian, whatever your affiliation you want to claim, there was a polarization to those town halls.

UNIDENTIFIED MALE: This was marketing.

UNIDENTIFIED MALE: It was, it was blatantly so. And there was just no, in my estimation, there was a lack of value because it wasn't informative. It was politicized. It was polarized.

UNIDENTIFIED MALE: Because it was so much marketing, or what appeared to be marketing to me, made people tune it out. And then we still leave ourselves unknowledgeable about what's really happening. So, this is probably a much better representation about how this should be handled. Just maybe in larger numbers throughout the United States.

(END VIDEO CLIP)

HARRIS: And we will hear live from Ali in the next hour of CNN NEWSROOM.

Overhauling health care -- Finance Committee Chairman Max Baucus' proposal hot off the presses. What did he and his so-called Gang of 6 agree on?

We are live on the Hill.

(COMMERCIAL BREAK)

HARRIS: It is make-or-break time for President Obama on health care reform. He's under pressure from the left and the right as he goes before Congress on Wednesday. Now aides say the president will detail what he wants to see in a health reform bill.

The story now from CNN's Kate Bolduan.

(BEGIN VIDEOTAPE)

KATE BOLDUAN, CNN CORRESPONDENT (voice-over): President Obama returns from vacation to the crucial week ahead in the health care debate. Top White House aides insist the president will spell out his specifics for reform when he speaks Wednesday to a joint session of Congress.

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: They'll leave that speech knowing exactly where the president stands, exactly what he thinks we have to do to get health care done.

BOLDUAN: At the same time, CNN has learned the White House is quietly talking about drafting its own health care bill, a kind of contingency legislation, and is leaning towards a plan that would trigger a public insurance option only if health care reform fails to meet certain goals. White House officials dodged questions Sunday about whether the president would sign a bill that doesn't include a public option.

DAVID AXELROD, WHITE HOUSE SENIOR ADVISER: He believes the public option is a good tool. Now, it shouldn't define the whole health care debate, however.

BOLDUAN: It's a contentious issue that has the White House squeezed from the right and the left.

REP. MAXINE WATERS (D), CALIFORNIA: We need credible, comprehensive, universal health care with a good robust public option now.

PAWLENTY: I think if the Democrats embrace the public option, even in the form of the trigger, they're going to shoot themselves in the foot.

BOLDUAN: And political analysts say there's a lot riding on the president's short visit this week to Capitol Hill.

STU ROTHENBERG, POLITICAL ANALYST: He can talk about various alternatives and ideas, but at the end of the speech, it seems to me, folks on Capitol Hill and around the country have to have a much clearer idea what kind of a bill he feels he needs to sign.

BOLDUAN (on camera): Recent numbers show the president may have some hard work ahead there. According to a CNN/Opinion Research Corporation poll, a majority of Americans say they feel more secure under the current health care system than with the president's proposals.

Kate Bolduan, CNN, the White House.

(END VIDEOTAPE)

HARRIS: Vacation accomplished. Congress back to town tomorrow after get ang earful on health care during the August recess.

CNN's Brianna Keilar in Washington.

And Brianna, after months of waiting for the Senate Finance Committee to put out its proposal for a health care overhaul, the committee's chairman, Max Baucus, at least, has drafted one.

What can you tell us about it?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, Senator Baucus, taking into account, Tony, all of these hours of negotiations that we have followed so closely, has finally put together a formal proposal and circulated it among the bipartisan members of the so- called Gang of 6. This is this group that has been seen as really the best chance for bipartisan compromise on health care reform in the Senate.

So, here's what it includes. A nonprofit health care cooperative, as we expected, instead of a government-run insurance plan or public option. And then the big tax that would pay for part of the overhaul is a tax on Cadillac Health Insurance plans, those high-end insurance plans that some say encourage consumers to overuse health care.

The price tag here, Tony, less than $900 billion. This is actually about $100 billion less than the other bills before Congress. So what Senator Baucus is doing here, putting out this proposal over the weekend, obviously trying to make sure that his committee can put its stamp on the health care debate before the president's address to Congress on Wednesday, really to see, Tony if this key committee can really reach a bipartisan compromise or if that effort is futile.

And I have to tell you, some Senate Democratic leadership sources have been telling me for some time, Tony, that they have felt that it is.

HARRIS: Really? OK. You know, there's another possible compromise track here, this idea of the public option with a trigger. What is it? And is there any bipartisan support for that idea?

KEILAR: So the trigger, this public option with a trigger, what that means is there would be a government-run insurance plan that would kick in only if private health insurance companies don't do what Congress wants them to do, provide affordable coverage to a certain number of Americans within a certain period of time.

And there is a key Republican in this gang of six on the Senate Finance Committee, even though this is kind of a separate track from what we just talked about, Senator Baucus' proposal, that key Republican, her name is Olympia Snowe. She's been talking about this for some time, Tony. She's been in discussions, in fact, with the White House about this so-called trigger.

And yesterday, Senator Ben Nelson, a key conservative Democrat in the Senate, said this is something the president should consider. What's more, Minnesota Senator Amy Klobuchar, a left-of-center Democrat has indicated that she is open to this idea as well. So some consensus in the Senate, but keep in mind, Tony, of course, the liberal Democrats, the House of Representatives, they are opposed to this idea. They think that think a public option with a trigger is tantamount to not having a public option.

HARRIS: Oh, boy. All right, tomorrow, starting tomorrow it really gets interesting on your beat. Brianna Keilar for us, we appreciate it.

KEILAR: I'll see you then.

HARRIS: Yes, yes, absolutely. The protest against health care reform, known as the Tea Party Express rolls on this Labor Day. Rallies scheduled in Joliet, Illinois, South Bend, Indiana, and Battle Creek, Michigan. The bus tour has drawn some angry crowds. It wraps up this weekend in Washington.

CNN Wednesday night, President Obama addresses Congress on his plans for health care reform, coverage from the best political team on television starts at 8:00 p.m. Eastern right here on CNN. The White House is set to release the text of President Obama's back-to-school speech that has many conservatives upset. Some critics say they're concerned that the president will use the speech to advance his political agenda. Supporters say it is an exciting opportunity.

(BEGIN VIDEO CLIP)

JOE GUTMANN JR, LAW GOVERNMENT TEACHER: It's the president talking to students. You know, the embrace of technology as a young student, I would have been so excited as a kid to have the president talk to me. So I think it's a great opportunity for our students and we're going to embrace it.

UNIDENTIFIED FEMALE: Trying to bring his views to the school and, you know, with the school kids and things. So, no, I don't think it's a good idea for him to do that.

(END VIDEO CLIP)

HARRIS: Our White House correspondents are standing at the ready to go as soon as the text is released.

And just last hour, a jury convicted three British Muslims in a plot to blow up airliners in flight and kill thousands of passengers. The men's arrest in 2006 led to restrictions on liquids on planes. International security correspondent Paula Newton now in London. Paula, if you would, talk us through the day in court.

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Well, this was a retrial, Tony. What happened was these three had been convicted of conspiracy to murder in 2008. They were already starting to serve their life sentence. The missing piece of the puzzle, they not convicted of trying to blow up airlines, Tony, and British intelligence here, prosecutors saying we cannot let this stand. We have martyrdom videos, they insisted, we have evidence even though they did not have plane tickets, even though some of them still not have valid passports. Wee are trying this again. They did.

And as a majority verdict an 11-1 that's allowed here in Britain, three of them convicted of trying to blow up the planes. Tony, what it means for all of us, you know airline travel is changed for you and me and everyone else, the complete liquid bans mean they tolerate little bottles.

HARRIS: Yes and plastic bags.

NEWTON: But this is vindication for Homeland Security and the United States and for British officers here. The plot involved eight airliners going to either the United States or Canada from London's Heathrow. Vindication, they're saying look, when we said that you know soft drink bottles, bombs disguised as soft drink bottles could blow up an airplane, we meant it. We knew it could have happen. Scientifically, technically, it could have happened. We were right to put in those restrictions and I think that's a good reason why they decided to spend a lot of effort and a lot of expense trying to get this retrial. Now five of them, there were eight defendants, five were not found guilty of those charges, but still the British prosecutors here, they'll take it, they're taking this as a victory.

HARRIS: Yes, all right, Paula Newton for us. Paula, appreciate it, thank you.

A former U.N. worker faced trial in Sudan today. Her crime, police say, her pants were too tight, her blouse too skimpy. CNN's David McKenzie is watching this case from Nairobi, Kenya and we're going to get to David in just a couple of moments. We just lost him.

All right, it is a move driven by the economy but some say it could lead to dozens of wrecks. Today, folks, in the Pacific Island nation of Samoa will begin driving on the left side of the road instead of the right. It is the first time a country has attempted to switch its driving lanes since the '70s. Officials say the move will make it possible for thousands of ex-patriots who live in New Zealand and Australia to send their used cars to family back home. We've got a map here. This map shows you who drives where. The red indicating left driving countries, yay.

All right, you better get out of water if you see these guys headed your way. These are great whites and this isn't a movie.

(COMMERCIAL BREAK)

HARRIS: Let's get you to our top stories now. Five more NATO troops have been killed in Afghanistan. Officials not yet releasing the identities and nationalities of the fallen troops, but we know at least two of them are Americans. So far this month nine U.S. troops have been killed in that war.

Just when you thought airlines had nickeled and dimed you enough with their fees, Southwest Airlines has a new one for you. Travelers who pay $10 more each way can board ahead of others to grab a plumb seat. They call it the Early Bird Program.

President Obama is headed to Cincinnati for a Labor Day rally. He left Washington earlier this hour. He is expected to push for health care reform at the AFL-CIO annual picnic. The speech 1:15 Eastern and CNN will bring it to you live.

And as we told you just a moment ago, a former U.N. worker faced trial in Sudan today. Her crime, police say, her pants were too tight, her blouse too skimpy. CNN's David McKenzie watching this all from Nairobi, Kenya, for us. And he joins us on the phone. David, what happened in court today?

DAVID MCKENZIE, CNN CORRESPONDENT (on phone): Well, Tony, what happens was quite surprising in fact. Lubna al-Hussein was a U.N. employee and a journalist living in Sudan, she is Sudanese. She was up for trial today. What we expected was possibly her to get that 40 lashes conviction or a fine or to be acquitted. But the court tried to get out of all of this and basically said we'll give you a fine of $200 and that's that. However, she said she's going to continue taking a stand saying there's a rule and this law is against the rights of women.

Now she's in jail, basically her lawyer telling us she refused to pay the fine, she'd rather take a stand. It looks like she's going to spend about a month in jail for the crime of wearing pants. You see in that photo, what she's wearing is not particularly revealing. She says, yeah, it's certainly not against the Sharia Law in Sudan, but there's a strict interpretation of the Islamic law and she's trying to fight and make it possible for all women to wear what they like.

HARRIS: So David, she wants to take this all the way to make the point here, doesn't she?

MCKENZIE: Well, that's right, Tony. Basically they're trying to take it to the equivalent of the Supreme Court in Sudan. The problem is that the Sudanese government is trying to kind of sweep this under the carpet. For them, they've had a lot of bad press, they've had a lot of bad publicity. Amnesty International is calling this practice abhorrent. And you have to remember, this isn't the first Sudanese woman who has come across here, many women have been flogged for wearing what is against Islamic code according to the morality police. She's taking a stand and trying to change the overall constitution.

So certainly not the end of this, but it would seem she's spending the night in jail and possibly the next month in jail for this so-called crime.

HARRIS: Yes, all right, CNN's David McKenzie for us -- David, appreciate it, thank you.

Time for a check of weather now with Reynolds Wolf. Unfreeze the animation. All right, let's just go to Reynolds.

(WEATHER REPORT)

HARRIS: Well, before I let you go here, have you seen what Rob has been doing all morning long?

REYNOLDS WOLF, CNN METEOROLOGIST: I'm so envious. Brings back great memories.

HARRIS: He's somewhere near Cocoa Beach and he's been taking -- face plant, yes.

WOLF: Very nice, very nice. Looks like about an eight-footer, I'm thinking a triple fin board he's playing with. Something like that. It looks pretty nice. He's doing all right there. Good balance. HARRIS: No, he's not.

WOLF: Come on, that's my friend, man.

HARRIS: All right. There he is. The big man, Rob Marciano apologizing. Women and children, be very afraid.

WOLF: He almost took out a family, but that's OK.

HARRIS: One more time, one more time and then I guess we need to get to some news here. Come on, Rob, bring it home, baby. Bring it home.

WOLF: Very nice.

HARRIS: Awesome. All right, Reynolds, appreciate it, thank you.

WOLF: Absolutely.

HARRIS: We have got a success. I don't know if you've seen this, but have you seen some of this video out of Canada? I mean, we show this because, I mean, this is starting to get out of hand here. We've got a free for all during a Canadian lacrosse championships there in front of a packed house, British Columbia. The brawl erupted after two players from the Salmonbellies clocked a player from the Excelsiors as you can see the bench is cleared.

WOLF: That's where the trouble starts. When you have a name called Salmonbellies and you're playing hockey with that ice, it gets a little crazy.

HARRIS: And the teams find the bench is empty. Kids are watching. Come on, we've got to do better than this.

WOLF: Exactly.

HARRIS: And there you go. Reynolds, appreciate it, see you next hour.

If you were in downtown Atlanta over the last couple of days, you probably saw dozen of people masquerading as fantasy and comic book characters. That's lovely. That's a good look, moms. The world's largest sci-fi convention known as Dragon Con has just wrapped up. These images sent to us from our i-Reporters. To become one of our i- Reporters, just upload your pictures of news stories at ireport.com. We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: Unemployment hitting African-Americans harder than any other group. Here's a look at the racial divide from the Bureau of Labor Statistics. It shows almost 9 percent of whites unemployed while more than 15 percent of blacks don't have jobs and 13 percent of Hispanics. The Obama administration says it recognizes that too many people are out of work and is trying to fix that. The economy also plays into issue -- the issue of health care. I asked our top money people, Christine Romans and chief business correspondent Ali Velshi about that on Friday. Here is some of that conversation.

(BEGIN VIDEO CLIP)

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Something really crazy has been happening in the labor market over the past not just few years, but 10 years, 15 years.

We are seeing a situation where it's easier because of globalization to simply switch a job out someplace else if it's a cheaper labor market. And we have seen that happening in spades.

You're already hearing labor economists talk about, if there are going to be new jobs created, maybe a company is going to take a risk on a facility, expanding a facility they have someplace else across the world instead of expanding it here. You're hearing people talk about that.

We also know -- Ali and I love to talk about this -- productivity.

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Yes.

ROMANS: You know, they're squeezing more work out of you. You're doing your former colleagues' jobs. You're worried about losing your job. You're doing -- your productivity is up about 6.6 percent.

Do you think that employers are going to say when the recession's over, OK, everybody, go back to your jobs, relax, we're going to hire all those people back? If you're being more productive now, you're going to be expected to be more productive when things turn around.

VELSHI: I do worry, though, about the shift. And again, it's not just this recession, but we've seen a shift towards employers hiring people where they don't have to pay them benefits, short of full time or contract work, and I do think you're going to see a lot more of that. And that's an important thing to think about in this health care debate. You might not be put out of a job, you may just not be in a job that has benefits in the next few years.

(END VIDEO CLIP)

HARRIS: Imagine, if every weekend was a three-day weekend like this one. It is now a dream come true for kids in one Georgia county, but our Fredricka Whitfield found some teachers and parents aren't so happy with the four day school week.

(BEGIN VIDEOTAPE)

SUSAN S. CLARK, SUPERINTENDENT: I was devastated. I'm sure I speak probably for every superintendent in the state of Georgia.

FREDRICKA WHITFIELD, CNN ANCHOR (voice-over): Susan S. Clark is schools superintendent in rural Peach County, Georgia.

CLARK: If was almost like, come on. It's a week before school starts. What are we going to do? WHITFIELD: In July, public schools in Georgia got some bad news as the state grappled with a budget crisis, they were told to cut spending. Peach County suddenly had a shortfall of nearly $800,000.

CLARK: Do I want to shut the buildings down and take the bulk of my savings in energy and transportation, or do I want to lay out 39 people?

WHITFIELD: So Peach County decided to try something new to Georgia, a four-day school week. For all 4,000 students in Peach County, no school on Mondays. The county estimates it will save $400,000 by closing school buildings and parking school buses. It is saving a similar amount with a three-day furlough for all staff.

NANCY HARPER, THIRD GRADE PARENT: When they first said that we were going to a four-day week, I thought this is crazy.

WHITFIELD: Nancy Harper, whose daughter is a third grader at Byron Elementary, wasn't happy.

HARPER: I planned out what I was going to do, OK, and when you make a budget and you've got your finances in a budget, and you've got it set, all of the sudden they threw a monkey wrench at it.

WHITFIELD: Parents are now left trying to keep their kids occupied or cared for on Mondays. Some got lucky. Thanks to Jesse Fortson, pastor of Byron Baptist Church.

JESSE FORTSON, PASTOR, BYRON BAPTIST CHRUCH: We sat down and decided to put together a program on Monday. It's an extremely low cost. We just don't want to do child care. If we were doing child care, we'd put them in a daycare. But we want to do is really come along side with mentoring and helping out in school.

WHITFIELD: That helps a few dozen students. A group of moms came up with another plan.

MITZI MCDANIEL, PARENT: Several of us were getting our children together on Mondays and letting the children experience things they sometimes can't learn that in school. We're just making the best out of a delicate situation right now. We talk about anything from the seven continents to the five oceans to the five sense to coloring, counting, anything that is age appropriate exercises.

WHITFIELD: Susan Clark says there are no easy options. She believes she took the least damaging course.

CLARK: Are you willing to take the risk to do what you believe is in the best interest of the children or not?

WHITFIELD: There may be more tough choices ahead. The county expects further budget cuts in January. Fredricka Whitfield, CNN, Atlanta.

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HARRIS: And here are some of the stories that we are working on for the next hour of CNN NEWSROOM. President Obama's back to school pep talk has generated plenty of controversy, mostly from conservative parents who feel and fear he will push his political agenda on impressionable young minds. We are expecting the White House to release that speech at any moment. This is a live look at the White House Web site. When will the White House hit send? Hit the send button.

Also a whistle blower who exposed deviant behavior by U.S. Embassy guards in Kabul sits down with CNN's Paula Newton. We will bring you the exclusive interview in the next hour of CNN NEWSROOM.

(COMMERCIAL BREAK)

WHITFIELD: You hear the music, everybody knows this, right? For the first time, researchers have tagged great white sharks swimming in the Atlantic off of our coast. The sightings have prompted officials to shut down several beaches. CNN's Jason Carroll has been following this for us.

JASON CARROLL, CNN CORRESPONDENT: Well you know, Tony, some species of sharks are common in the cape waters off the coast of Massachusetts, but despite what you may have seen in the movies, great white sharks are relatively rare in New England. So imagine the surprise of researchers who spotted not one but two and were able to tag the giant predators near Catan Beach. They estimate each one weighed 1,000 pounds. This is the first time two great whites have been tagged in the Atlantic. It all happened on Saturday when researchers and local fishermen made a little bit of history at the sea.

(BEGIN VIDEO CLIP)

BILL CHAPRALES, TAGGED GREAT WHITE SHARK: Well, as soon as he came up to the surface, I raised the harpoon and got ready to take aim. And as soon as he gets within range, I just throw the pole into the fish that puts the tag into the fish and as soon as it hits him, he takes right off, the tag is in place.

GREG SKOMAL, MASS. INSTITUTE OF MARINE FISHERIES: I've tried to go out and find great white sharks in 27 years. I can't find them. So that's a lot of time, a lot of commitment. And in one day, boom, two animals. That kind of puts it into perspective.

(END VIDEO CLIP)

CARROLL: The great whites were tagged with high-tech devices programmed to stay on the sharks until January 15th. And then the devices will pop off, float to the surface and then they should begin transmitting data via satellite back to the researchers. Scientists hope the information will help them learn more about the shark's migratory patterns and will lead to better conservation efforts. Also an important note, Tony, several beaches in the area have been closed and state officials are warning swimmers in the area to be on the lookout for sharks. Tony?

HARRIS: I get it, Jason, appreciate it, thank you.