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New Green Auto Jobs for Detroit; Former Detroit Mayor Faces Prison Time; DOW Drops at Open; Students Wear KKK Robes at School; Options to Stop the Oil Flow

Aired May 25, 2010 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: And good morning, everybody. I'm Kyra Phillips. Here is what we're working on this morning.

Thirty-six days later, here we are. Top kill eve. It is BP's big plan that might not work. A shot in the deep. The gulf and everything it touches at stake. Credibility and reputations could get as soiled as the marsh.

Stocks piling into the elevator getting ready for a ride down. And get ready. It could be a sharp drop.

Sure, it'd be nice to get away from the oil and the stock market, wouldn't it? Well, Jamaica is just the ticket. Just be aware of flying bullets and the narco kingpin with his posse.

All right, let's start with the countdown right now. This hour, BP executives are briefing reporters on the next great hope to shut down the gushing oil leak in the gulf.

Our David Mattingly is monitoring the conference call. We're going to bring that to you as soon as news comes out of that briefing. But first, we actually want to set the stage. This hour, we're going to try and make sense of that option and other efforts to contain the disaster.

Let me bring you over to the magic wall. In fact, you know, we're actually going to show you exactly what the engineers are thinking about. And first up, we actually want you to see where that first bullet in the chamber is going to be.

Well, let's just show you the animation as this is what we've been talking about a top kill. The top kill method. It's how the experts actually hope it will play out beginning tomorrow. And as you can see here, the crews would actually begin injecting the cement right into the pipe to try and plug it up.

It's the best hope going forward right now. And even BP says it has no more than a 70 percent chance of succeeding.

All right, so what's next? Let me show you option number two. The dome. We've talked about that. It could be another shot at placing this dome over the leaking oil well. It's like putting a bucket over a broken sprinkler head if you're actually in your front yard trying to stop a water leak. Experts have tried this technique twice and twice it's failed. But we're told that engineers have tweaked the approach. So maybe this time this dome effort could work.

All right, let's take a look at the third option. I need Jacqui Jeras to help me with the training on the big board here. Rob Marciano on assignment for us so I'm winging it.

All right, this is another option, the so-called junk shot. You've heard a lot about this as well. It's similar to tomorrow's top kill maneuver, but instead of cement and mud, crews would actually use -- well, junk.

(LAUGHTER)

PHILLIPS: They would actually inject tires, golf balls, other expandable materials right into the pipe to try and clog it up. Now no matter what happens with any or all of these other attempts the real answer is actually months away. Crews have already begun drilling new relief wells.

What's so special about relief well? Well, they would actually have a cutoff valve that would stop the gusher immediately.

Now we're going to continue talking about the oil spill disaster. We just laid out all the options there that are on the table. A briefing is happening right now -- we told you about that -- regarding top kill. We are monitoring that for you.

But first, let's go ahead and head out to Ed Lavandera who is in New Orleans right now.

So, Ed, top kill. Are expectations too high?

ED LAVANDERA, CNN CORRESPONDENT: Well, the expectations are high, clearly, given the gravity of the situation because, as you mentioned, BP officials kind of estimating their chances of success at about 60 to 70 percent. All those other options that you talk about, that we know of so far, and BP stresses that they will continue looking for other options to do.

But really this top kill effort is the one that could potentially shut down the well and stop the leaking. If not, what we're really looking at is the very high likelihood that every other option has more to do with trying to capture the flow and the leak and not necessarily cutting it off, which means that we would be waiting until August until those relief wells get to the point where they need to be to cut off this well for good.

PHILLIPS: And another concern right now, the dispersant that BP is using to break part some of this oil. The company is still using a pretty dangerous formula that the government actually wants shelved.

So let's take a look at the piece that you put together, then we'll talk about that.

LAVANDERA: Sure. OK.

(BEGIN VIDEOTAPE)

LAVANDERA (voice-over): Despite being told to use a less toxic dispersant, BP continues spraying tens of thousands of gallons of the chemical called Corexit into the Gulf of Mexico. BP's chief executive is unapologetic.

TONY HAYWARD, CEO, BP: We have used dispersants in the beginning that are on the EPA approved list. Everything that we do with dispersants is with the explicit approval of the EPA.

LAVANDERA: Not quite. EPA administration Lisa Jackson gave BP a three-day deadline to change dispersants or explain why it couldn't. The deadline has passed and BP is still using Corexit.

LISA JACKSON, EPA ADMINISTRATION: The answer we got back from -- from BP to me seemed more like a defense of their current choice. It reminded me a little bit of that old commercial, I'd rather fight than switch.

LAVANDERA: BP says there are five viable dispersant options at this point besides Corexit. The EPA says Corexit is the most toxic of those. But in fact on May 4th BP ordered 100,000 gallons of one of those called Sea-Brat, but it's still sitting in an industrial park outside of Houston, Texas.

After our story aired last week questioning why this potential help was sitting hundreds of miles away, BP now says Sea-Brat needs more testing because it may harm the environment more than Corexit. The maker of that Sea-Brat, though, says BP is nitpicking.

JOHN SHEFFIELD, PRESIDENT, ALABASTER CORP.: I'm anxious to get started. I think the window of opportunity to start effectively dealing with the oil spill is closing.

LAVANDERA (on camera): So that makes it more urgent to get this?

SHEFFIELD: I think absolutely.

LAVANDERA (voice-over): While BP keeps fighting to stick with the product it's always used, Louisiana environmentalists like Wilma Subra say the EPA should force BP to stop using Corexit.

WILMA SUBRA, LOUISIANA ENVIRONMENTAL ACTION NETWORK: Nobody is standing up to BP. They make the decision. They disperse it into the water cobble (ph) and then we have to live with the environmental damage.

LAVANDERA: The EPA says it is standing up to BP calling on the oil giant to dramatically cut back on the amount of dispersant it's shooting into the Gulf of Mexico.

(END VIDEOTAPE)

PHILLIPS: So, Ed, does the EPA feel like BP is defying them? LAVANDERA: Well, we asked the administrator that pointblank yesterday. She didn't necessarily agree with that. But it is clear that the EPA and BP are kind of in the middle of -- in the midst of a standoff, kind of at a stalemate here.

EPA says that they will have their scientists to continue to study what the harmful effects might be of all of these dispersants that used under water. In the meantime, they're calling on BP to cut back by at least 50 percent the use of dispersants in the Gulf of Mexico.

PHILLIPS: Ed Lavandera, live from New Orleans. Ed, thanks.

So, what should the government be doing and how has it performed so far? After all, this could become the legacy of the Obama administration. We're going to talk to White House veteran David Gergen who has served as adviser to four U.S. presidents. And he's seen a lot of disasters in his time. He's going to join us next hour.

Moving on to Wall Street. This hour, the Dow opens at its lowest level in three months. And when the opening bell rings, it may only go down from there.

Recognize a trend here? CNN's Christine Romans in New York to set the stage for us -- Christine.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Good morning, Kyra. You're right, Dow futures are pointing at least 200 points lower here. And that's because you had big selloffs around the world over night. In Asia and in Europe.

For two reasons. One, Asian stocks very concerned about new saber-rattling on the Korean Peninsula. In particular concerns that North Korea is -- frankly, threatening war with South Korea and that causes a lot of -- a lot of nervousness about a global recovery in Asia.

Also, you're talking about, still, Europe. The euro is down again. The dollar is up. There is a global sense of risk aversion here happening right now. You've got oil prices down. You've got the dollar up. You've got stock markets down. Basically, a lot of people saying, you know what, we think that maybe all of this hope for a global recovery has been priced to perfection.

The best case scenario has been put into the market over the last year and now we're just very concerned about all the risks.

I want to show you really quickly, Kyra, where we've been in just two years in stock markets. Because if you're waking up this morning and saying, what? What do you mean down 200 points? One day it's up 100, one day it's down 200.

This is where we've been. That first big selloff there, down 57 percent from the all-time high in 2007 to last March. Remember? And then in March, you embarked on a once-in-a-lifetime rally. Eighty percent stocks went up with barely any kind of pause. And since then, stocks are down more than 10 percent, 12 percent for the S&P 500.

That is considered a textbook correction. Now, after that huge wild ride around the world, people are saying we're concerned about Europe, we're concerned about these debt crises in these concerns, and now we're concerned about North Korea. We're not going to be investing in stocks this morning.

That's what's happening here -- Kyra.

PHILLIPS: All right. We're following it all morning. Christine, thanks.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Come on, threw it up on him.

UNIDENTIFIED MALE: OK.

(END OF VIDEO CLIP)

PHILLIPS: Sporadic gunshots and a stream of troops and police swarming the slums of Kingston, Jamaica, all searching for one man. A man described as Robin Hood. But before you think he's a hero for the poor, he's an accused drug kingpin. We're talking about Christopher "Dudus" Coke.

He's facing extradition in New York on drug and gun charges. But the impoverished west side of Kingston is his turf. And people there are willing to protect him. Why? UNICEF says that nearly half the people in Jamaica live in poverty. And Coke and his gang are known to hand out sandwiches in the streets, send kids to school, and build medical and community centers.

Now wonder he gets compared to Robin Hood. But still, before you start feeling sympathetic for the guy, keep this in mind. The State Department says Jamaica is the largest Caribbean producer and exporter of pot and it's a layover point for cocaine transfer from South America.

Dudus Coke is accused of having a hand in trafficking both to the U.S. as well as firearms. And Jamaica news report says his gang, the Shower Posse, earned its name for raining bullets on their enemies.

So would you still want to go to Jamaica for your beach getaway? Even if you got to dodge bullets from the Shower Posse?

Kirk Abrahams from Radio Jamaica joining us now live by phone.

First question right off the bat, if I'm headed there for vacation, do I go?

KIRK ABRAHAMS, RADIO JAMAICA: All right, Kyra, certainly you can come to Jamaica because what is happening is that (INAUDIBLE). If you're coming to Jamaica -- most of the tourist coming here, they usually go to the west coast of the island or the north coast (INAUDIBLE). Those areas are totally OK at this time. As I said the (INAUDIBLE) is concerned (INAUDIBLE)

PHILLIPS: Kirk, I apologize. We're having -- we've got bad communications with you. We're going to try and improve that phone connection with you there in Jamaica. We'll continue our conversation.

Kirk Abrahams with Radio Jamaica.

If you're getting ready gearing up for a vacation there, if you happen to have relatives, loved ones, friends in Jamaica, we'll have more information on -- on that road, how dangerous it is to travel to and from the airport, and if indeed you should head there for a vacation if you're planning so soon.

We're going to move on now to that sunken battleship and the accusation of trespassing threatening to drag North and South Korea into combat. Today the North says it's ready to flex the military muscle after accusing the South of slipping over a watery border.

Bad timing. The South just released a report blaming its neighbor for torpedoing its Navy ship killing 46 sailors. The U.S. has thrown its full support behind the South and troops are now planning a pair of military exercises off the Korean Peninsula.

Thailand's ousted prime minister wanted on terrorism charges. National leaders accused Thaksin Shinawatra of -- inciting, rather, weeks of protests. That paralyzed Bangkok and left at least 50 people dead. Most of those victims Thaksin's followers the Red Shirts.

Meanwhile Bangkok is tense but calm as it recovers from the violent outbursts. And authorities say they are keeping the peace but extending the overnight curfew for a week.

Now on that charred flight -- or the charred data recorder, clues that could help piece together the last moments of an Air India flight that crashed on Sunday killing 158 people. That flight data recorder was found intact in Bangalore.

That's from the Boeing 737 that overshot the runway, slamming into a ravine before bursting into flames. The NTSB has arrived at the crash site to help with the investigation.

A long-wait to break through could be coming to the rank and file of the U.S. military. The end of the line for "Don't Ask, Don't Tell" is on the horizon.

BONNIE SCHNEIDER, CNN METEOROLOGIST: I'm meteorologist Bonnie Schneider tracking extreme weather. There is a tropical disturbance out there that will bring wind and rain to parts of the south East Coast.

Plus we are tracking severe weather in the plain states, and if that's not enough, temperature contrasts that are so dramatic from the 30s to the 90s depending on where you are in the U.S. We'll tell you all about it straight ahead on CNN NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Repealing "Don't Ask, Don't Tell." The White House and congressional Democrats reportedly have a deal that would allow gays to openly serve in the U.S. military.

CNN's Pentagon correspondent Barbara Starr live in Washington with the details.

So, Barbara, the vote could come soon, right?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Absolutely, Kyra. The first vote on this could come as soon as Thursday.

What are we talking about? Congress is looking at a compromise that would actually repeal "Don't Ask, Don't Tell" that would allow gays and lesbians to openly serve in the military but it would not go into effect until the military certifies that it's ready for the whole change.

Now the military is going to spend at least until the end of this year, reviewing it all, talking to the troops about what they think, and looking at an implementation plan, how they would actually get the military ready for all of this in terms of housing, benefits, all that sort of thing.

So they're looking at this compromised to try and get it done now before the political landscape changes on Capitol Hill and they don't have the votes for it. But keeping the promise to the troops that they will give them time to weigh in on all this, say what they think and get ready for it.

Vote now. It doesn't go into effect for perhaps several months -- Kyra.

PHILLIPS: And we'll track it. Barbara, thanks.

South Dakota quickly becoming a severe weather hot spot. Meteorologist Bonnie Schneider with the roundup of tornados caught on tape and the consequences.

(WEATHER REPORT)

PHILLIPS: Well, Haiti's homeless have had it. Still needing help after the earthquake, tensions boil over on the streets. We'll take you there.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now.

BP finalizing its top kill plan to plug that leaking wellhead of crude oil that's still gurgling in the Gulf of Mexico. The operation begins in just a few hours. We're monitoring a conference call the company is holding this hour. We'll bring you the latest developments as they warrant. And a state of emergency intensifies in Kingston, Jamaica where violence is exploding as the island's biggest drug gang is battling government security forces over the planned extradition over an alleged Jamaican drug lord to the U.S.

Uncertainty on Wall Street. Nervous investigators watching stock futures drop as concerns over global economic slowdowns gain steam. The euro now hovering at a four-year low set last week.

(COMMERCIAL BREAK)

PHILLIPS: Well, nearing the end of their ride. Astronauts aboard the space shuttle Atlantis going through their checklist for tomorrow's scheduled return to. It's the Atlantis shuttle's final mission. Touchdown set for 8:48 Eastern Time tomorrow. And of course, we'll bring that to you live as it happens right here on CNN.

Now check out what rolled ashore on South Carolina's Hilton Head Island Saturday. A hunk of metal, roughly the size of a car. According to the local paper the FAA is identifying it as debris from a European rocket booster that used to launch -- was used, rather, to launch a satellite.

Haiti's homeless have had it. Patience running out and things have gotten pretty ugly. Gun shots and tear gas were fired in the area around a giant tent city.

And our Gary Tuchman was there.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): Hundreds of protesters are in the street right now here in Port-au-Prince, near the presidential palace. You can see, they set a fire right here. They said tire is on fire. They also put a Brazilian flag inside this fire.

They are angry because they said there are a lot of Brazilians who administer forces that the U.N. forces who help protect Port-au- prince, they're blaming U.N. forces, and I'd stress, we don't know this for sure, but they are blaming all the people the U.N. for firing rubber bullets and tear gas at them.

According to the protesters here, two youths were injured from the rubber bullets and have been taking to the hospital. But there's been much unhappiness over the past couple of weeks throughout the Port-au-Prince about the government's response to this earthquake.

We've been here since January 13th. Everything has been remarkably calm. But things now, as it gets warmer, as it gets better, conditions seem politically to be deteriorating. And you can say right now, we don't know what's going to happen the rest of the night.

(END VIDEOTAPE) PHILLIPS: Now there were no other reports of disturbances in Port-au-Prince last night, but Gary plans to follow up on that story. He'll be reporting for CNN's "ANDERSON COOPER, 360" tonight.

Opening bell just minutes away. Dow future already down more than 200 points. We're following the rocky ride.

(COMMERCIAL BREAK)

PHILLIPS: Got it. Fears about the global economy are slamming stocks all around the world. Asian markets sold last -- sold off, rather, last night. European markets doing the same thing. So how bad will it be here in the U.S.?

Hopefully, Felicia Taylor will give us a little inside-look of what we're expecting to see at the open -- Felicia.

FELICIA TAYLOR, CNN BUSINESS CORRESPONDENT: Hey, Kyra, yes, it's been pretty serious overnight, especially in Asia but most significantly in Europe. The Dow futures forecast a lower open by as much as 200 points.

The selloff did begin in Asia. They were up about 3 percent. Tensions escalated between North and South Korea. North Korea's Kim Jong-Il putting his military on combat alert. The bears then continue to travel through Europe, selling off -- especially in the financial institution, they're taking the brunt of the bad news after word that four Senate banks plan to merge due to concerns about solvency.

EU leaders are also now warning that Europe's economy could stagnate without major government reforms. Basically, what we're looking for is another drop here.

The European markets are up about 3 percent. Most significantly, in Paris, they were down about 4 percent. The European currency is also near a four-year low of 121. The Dow industrial is, indeed, off 1.25 percent, a loss of 123 points. The Nasdaq sinking 2.5 percent this morning. The S&P is also down 1 percent -- Kyra.

PHILLIPS: All right. Felicia, thanks.

Ali Velshi, put this into perspective. How do we fix this? Why do we need to worry? How is it going to affect us?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Other than that day where the Dow dropped 999 points and that might have had something to do with computers, this is not a science. This is all art.

PHILLIPS: Do we still know if that was a glitch or something --

VELSHI: Remember, the Dow was down 350 points because of Europe and then it went down a lot more and that was likely a glitch.

PHILLIPS: OK.

VELSHI: But they're sort of narrowing down what it is, but generally speaking, when the market is down, it's more art than science. It is how people feel. It's emotion. So, you go back in --

PHILLIPS: Fear?

VELSHI: Totally right. Go back to 2008, when our markets went down in September and October, the whole world suffered that too because people said, can the economic situation be fixed or are we all going to be unemployed and in bread lines? That's basically the concern.

PHILLIPS: Is it the oil spill that's freaking everybody out right now? Is it --

VELSHI: No, no, no. This is still the issue that Europe has such big problems in terms of how its economy is run. Remember, this is not just a banking crisis in Europe. It is, but it's also the sense that there are countries like Greece, like Portugal, like Spain, they have economic policies that can't be changed overnight, long vacations and, you know, increasing wages and things like that that can't be fixed overnight. And people are worried that if they can't fix this, it makes Europeans poorer, right?

Things will change. It will make their houses more expensive. It will make their imported goods more expensive. And when they are poorer, everybody else is too because everything that they buy from people like us doesn't get bought and that affects our recovery. That's why this continues. Until somebody comes up with a plan that investors or all of us say, hey, this is going to get back on track, it won't fix. But remember, it did fix for us after 2008. It will fix for them. We just haven't found the right fix yet.

PHILLIPS: Sounds like the oil spill.

VELSHI: It sounds right.

PHILLIPS: There is a similarity. Is there a jump shot or a top kill that we can somehow incorporate into the --

VELSHI: It's a great parallel because we know that there is enough science and technology to fix that oil spill, but until it gets fixed, we're all going to be very worried.

PHILLIPS: All right. We'll track it. Thanks, Ali.

VELSHI: OK.

PHILLIPS: Some positive automotive news coming out of Detroit, actually. Ford Motor Company has announced a $135 million initiative to build battery packs and components for hybrid vehicles that it plans on producing in 2012. It plies to two Ford factories near Motor City, brings at lease the 170 new jobs with it. That's good news. And work that is presently being done overseas will now come here to the U.S.

We're also keeping an eye on Detroit right now for the sentencing of former mayor, Kwame Kilpatrick. He could end up back behind bars after failing to live up to the terms of his probation. Kilpatrick, as you remember, pleaded guilty to obstruction charges after sexually explicit text messages show that he purged himself in a whistle blower's lawsuit. Prosecutors now want Kilpatrick to serve from 2-5 years behind bars for allegedly lying about his ability to repay $1 million in restitution.

The countdown to top kill. BP executives say the plans remain on track to try in plug the ruptured oil well sometime tomorrow. The procedure has successfully smothered above-ground oil wells in the Middle East but has never been tested at 5,000 feet under water. Now, for that reason, BP gives 60 percent to 70 percent chance of success. Today is the 36th day of that disaster. 36 days and counting. 36 days and wondering, should BP really be in charge here?

The more oil that gushes, the more that people are losing confident in that company. John Roberts tackled the question this morning with the president's energy czar, and he's joining us live this morning with our "AM Extra" -- John.

JOHN ROBERTS, CNN CORRESPONDENT: You know, Kyra, it is so difficult to get clear answers on any of this. A lot of it's because working at these depth with the type of leak that they've got, nobody is certain what to do. Nobody has gamed this out. They were relaying on that blowout preventer and when it didn't work, it's all just kind of like, all right, let's get the heads together and see how we can approach this, which prompted a question this morning to the president's energy czar, how is it that the government, these leases are given out all the time.

There are dozens of them that are giving out. There are all these dozens of drilling rigs out there in the Gulf of Mexico, but how is it that the government and BP were so woefully unprepared to deal with the disaster at these depths, and how is it that they ever got to sink the drill in the first place without having any kind of a disaster plan? Here is what she told me.

(BEGIN VIDEO CLIP)

ROBERTS: How is it that neither the government nor BP were prepared to deal with a spill this big or this deep without adequate safeguards being put in place? How did they even get permission to drill without having the disaster plan?

CAROL BROWNER, ASSISTANT TO THE PRESIDENT ON ENERGY & CLIMATE CHANGE: There are plans. The states have plans. The drillers are required to have plans. There are plans. Obviously, this is a very, very large, complicated situation. And what we're doing right now is making sure that all of the best minds are brought to bear. And that, you know, BP, we're not relying on BP, that their expertise is being taken advantage of, but we're making sure that everything is being done to get this thing shut down. ROBERTS: You say that there were plans, but it would be a pretty clear indication from what we're seeing now 36 days out that those plan were wholly inadequate. So, how did they ever get through?

BROWNER: For example, each of the states have plans in terms of what needs to be protected, what are their most sensitive areas. We are working with the governors.

(END VIDEO CLIP)

PHILLIPS: OK. Working with the governors. So, even there, you hear her skirting the issue and your question actually putting the responsibility with the governors now. So what's the deal?

ROBERTS: How many times did you hear her say the word plans? We had plans for this, plans for that. But nothing is working. If there were disaster plans for the bottom of the sea, it's clear that those didn't work. If there were plans to protect the wetlands and the marshlands, it's clear that those didn't work. If there were plans to sop up all of the oil that's coming out in the bottom of the sea, it's clear that those didn't work. You know, the government, according to Admiral Thad Allen, has to give the lead to shutting off this well to BP because the government can't do it.

The government doesn't have the expertise. Unless, we want to go back it's soviet's day (ph), Kyra, that we're talking about a week and a half ago, drill a hole drop a nuke in and seal up the well that way, well maybe, the government could participate. They could BP the nuclear weapon, but the government doesn't have the technology to deal with shutting off this leak. And it's clear from what we're seeing on the surface that nobody has the technology to adequately stream those booms to protect the wetlands.

PHILLIPS: You know, we laugh about that report that the soviets put out in 1986, but that's exactly what they did, and it worked. A lot of people are wondering now at what point do you tell BP, a corporation, move over. You obviously don't know what you're doing. Let's bring in the most amazing minds in the world whether the oil industry or people from the Middle East and try to attack this in a different way. So many people asking that now. We're actually going to tackle that coming up next hour. John, appreciate it.

ROBERTS: All right. Looking forward to hearing what people have to say, Kyra, because it certainly is, as the British would say, a sticky wicket.

PHILLIPS: Yes, it is. Now, we'll continue to follow that as well and push it forward. Thanks so much, John.

Attention Wal-Mart shoppers, the store is slashing prices on the Apple iPhone. That's right. Slashing prices on that little toy that you love so much, but you got to read the fine print, by the way.

And here's a medical news flash. 87 is the new 25. And here is the proof. Check out Adam Hoffmann of San Antonio, still pole vaulting after all these years. That triple bypass nine years ago not slowing him down. Adam also does the high jump, long jump, discuss, shot put, juggling, hammer throw and weight throw. Oh, and by the way, he plays softball too. Definitely not your father's grandpa. And hey, if you got the will and the skill, might as well jump.

(COMMERCIAL BREAK) PHILLIPS: BP's top kill option is just about less than 24 hours away, and actually, BP officials have been holding a conference call that our David Mattingly was also listening into. He joins us now live from New Orleans. You know, this procedure has never been tried in such depths. A lot of people wondering if this is going to work. Nothing else has so far. What are they telling you, David?

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: Just listening to that call for lack of a technical term here, they're definitely down to crunch time. They are going to be spending the next 12-24 hours doing a lot of pressure testing. They're going to be trying a bunch of connections. This all being done with robotic hands down there at the bottom of the ocean, something they've never tried before. These robots the size of small sports cars up to the size of mini-vans. They're going to be connecting the hoses. They're going to be pressure testing all the entry points just to try and figure out how best to insert this liquid into that system that they have down there.

Again, this has never been tried before at this depth. It's never been 100 percent successful when they've tried it on land and at other depths. So, there's always some risk that's involved in this. And they're learning as they go. The BP officials talking today were making the point, we're doing something in a matter of weeks that would normally take months to prepare for any kind of operation at this kind of depth. So, really, I mean, they're about to take a big leap into the deep end of the pool here to see what's going to work before they try this top kill.

PHILLIPS: OK. Let us know as you hear more. David Mattingly, thanks so much.

If your kid wears a bathrobe to school, it's a small problem. If your kid wears a KKK robe to school, we're way beyond a dress code violation here, and it happened in Georgia. A history teacher, really wishing it did not happen.

(COMMERCIAL BREAK)

PHILLIPS: I wish you could see Elizabeth Cohen dancing over to that song. Don't you wish that I got her on the deep shot?

Wal-Mart is cutting the price of Apple's 16 gigabyte iPhones from $199 to $97. The sale price on the iPhones starts today before Apple rolls out a new model. And you know the thrill, when a new model hits store sales, and the old one, well, it tanks. And if you're thinking of taking advantage of the sale, remember you have to purchase a two- year contract from AT&T.

All right. We've been telling you, date 36 and no end in sight for the oil gushing from a BP well in the Gulf. Now, you think the people in Grand Isle, Louisiana, are a little bit upset about the gobs of goo that have washed up in their community. Check out the signs. BP, we want our beach back. Shame on you, BP. Beach closed. Life is no beach here.

The protest in Houston was a lot louder and a bit skimpier. Code Pink, you know the women's activist group staged this protest. Some pretty unique outfits there, a good way to get attention. They went after both BP and the rig owner, TransOcean. Urged the government to shutdown BP, seize its assets and take over the cleanup.

The oil spill has already (INAUDIBLE) ashore in three states and shut down waters that provide seafood for much of the country. But we wanted to ask, how will it impact you? According to the latest CNN Opinion Research Corporation Poll, nearly one in three Americans say it will directly impact them. More than half say that they will be indirectly impacted; 16 percent of Americans say they expect to feel no effect at all.

And next to Wednesday and Thursday, Dr. Sanjay Gupta takes an in- depth look at "Toxic America". It's a two-night special investigation. He'll report on toxic towns and toxic childhoods. Find out how common chemicals are affecting our children and what we can do to protect them and ourselves.

(COMMERCIAL BREAK)

PHILLIPS: Well, we're monitoring the big board for you there at the New York Stock Exchange. Right now the DOW down 227 points.

Stephanie Elam, it is going to be a rocky day.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Yes. It's one of those days, Kyra, when we're going to have our eyes glued to the market and see what's going on here. And there are a few things that we're watching.

Well, first of all, this is the second day in a row that we're really seeing stocks getting slammed here; the DOW closing on its lowest point in three months yesterday. That did not help out the Asian markets which are also being affected by what's going on with the tensions between North Korea and South Korea.

And then that spilled over to the European markets, so let's be clear, this all started because over the weekend Spain bailed out the country's banks because of issues over solvency and whether or not these banks would be able to work. That fear of the spreading contagion of what's going on in the marketplace and what's going on with Europe really keeping investors jittery. They want a solid outcome, until there is one, we'll probably see the markets look like this.

So the DOW as you can see they're off 225 points; that's below 10,000, last time we closed below 10,000 was the first week of February. So we'll be watching that.

The NASDAQ is on the down side by more than two and a half percent right now. S&P 500 off two and a third percent. So we'll be watching this today but obviously a lot of this has to do with what this means for us if this -- if this solvency issue spreads throughout Europe and then affects people here in the United States -- Kyra. PHILLIPS: OK. We'll keep watching it and talking. Thanks, Steph. More from the CNN NEWSROOM straight ahead.

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PHILLIPS: What the heck was she thinking? A history teacher in Georgia giving the green light on white robes. Plenty of students dressed like Klansmen for a history project on racism. The kids were doing a scene like a reenactment. Oh, they made a scene all right when they wore the robes outside class and outside context.

Watch this story now from Ryan Young of WSB TV and then we'll talk.

(BEGIN VIDEOTAPE)

CODY RIDER, STUDENT: Tears came to my face.

RYAN YOUNG, WSB TV (voice-over): Cody Ryder believes his classmates crossed the line.

RIDER: We're sitting in the lunchroom and my little cousin tapped me on the shoulder. He was also African-American, you know, and he was scared. Like there was fear in his eyes and I was like what is it? And I looked up and they just walked into the lunchroom with white sheets.

So I mean, me, I got mad, stood up and I tried to go handle it.

YOUNG: Cody says teachers tried to calm the lunchroom down by telling students it was a re-enactment for a class project. But his cousin became enraged when he was asked to help participate.

RIDER: The students approached him and they asked him if they can reenact the lynching with him.

YOUNG: Katherine Armena (ph), the woman you see here, is the teacher whose advanced history class wanted to make a film about racism when four students put on robes like the Ku Klux Klan.

DEWEY MOYE, SCHOOL SUPERINTENDENT: She's an advanced placement teacher and has done very well; has been very competent in her job and in her performance. I think it was a very bad decision.

Lumpkin school superintendent Dewey Moye says the actions are not one his system can stand by and one they can't allow to happen again at the high school.

MOYE: We will not sanction that kind of decision. I just think she used extremely poor judgment.

(END VIDEOTAPE)

PHILLIPS: There's a history teacher who wishes she could go back in time and tell the kids to shoot "Birth of a Nation" somewhere else in school. Now I don't think woman meant any harm and she admits it was bad judgment to let that happen. I do think she needs a common sense check. She got a little too wrapped up in AP history and forgot about the present and the old scars that haven't healed.

We want to know what you think about this story. Should this teacher or these students be punished? Go to my blog, CNN.com/kyra, post your comments. I'll share some of them on the air next hour.

This is probably not the best way to get tourists to cross the border. Take a look at the advertisement the Mexican Tourism Board put in the Arizona republic. "In Sonora we're looking for people from Arizona." Probably not a good idea to team up with that ad company that put that picture together, not in this climate; it could easily have the opposite effect.

(BEGIN VIDEO CLIP)

SHERIFF JOE ARPAIO, MARICOPA COUNTY, ARIZONA: I don't know what this guy's looking at. He's probably looking at me. What do the binoculars mean? Does that mean it replaces photo radar?

UNIDENTIFIED FEMALE: The initial impression is there is combat waiting in the jungle and it's waiting for you.

(END VIDEO CLIP)

PHILLIPS: Well, the Sonoran Tourism Board changed the ad. It now says "In Sonora we're looking for people from Arizona who want to have a great time." And there's a picture of a girl in a bikini. Right there and -- well, do we see it? Maybe not. I guess it's in the binoculars.

All right. Last one. This is funny and good. Jan Brewer's ad firing at Congressmen of the sort of who didn't read the bill. She did it through a puppet, actually. Are we going to see it? OK. We'll show that to you, hopefully next hour.

All right. Let's go ahead and check top stories, shall we? Tensions are remaining high right now over South Korea's claim that North Korea fired a torpedo at one of its ships back in March. The North today accused the South of trespassing into its waters and threatened military action.

Congressional Democrats and the White House have reached an agreement on repealing the "Don't Ask, Don't Tell" policy. The House could vote on an amendment as soon as this week. The repeal would become final only after military review is completed by the end of the year.