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Stowaway Breaches Airport Security; Fire Crews Safeguard Los Alamos; Colbert Testifies in DC; Palace Denying Runaway Bride; Watching to See if Casey Testifies; Obama Rips Congress; Sen. Maj. Leader Calls for No Recess; Casey Anthony Murder Trial; Defense Secretary Gates Last Day; Police Leave Rifle on Patrol Car

Aired June 30, 2011 - 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: Hi, guys. Good morning.

It's 9:00 a.m. on the East Coast, 6:00 a.m. out West.

Will Casey Anthony take the stand in her murder trial? We're live in Orlando, Florida.

Firefighters make some critical process against the flames threatening the Los Alamos National lab. They say stockpiles of toxic and radioactive wastes are safe and secure.

And just minutes ago, a new measure of the economy. The number of Americans filing their first unemployment claim dips slightly to 428,000, a decrease of about 1,000 from the week before.

We begin with the security breach that will leave you speechless. A man allegedly gets on a plane, flies across the country, and get this, no valid I.D. and somebody else's old boarding pass.

Our homeland security correspondent Jeanne Meserve on the story for us.

Jeanne, with all of the precautions in place, with all the focus on our security this seems outrageous.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Yes, it really is an eye-opening sort of event.

I should say first of all that a law enforcement official tells us that there's nothing at this point that indicates terrorism but it's certainly raises a lot of questions about what kind of security we have at the nation's airport.

It involves an individual by the name of Olajide Noibi. On June 24th, according to a law enforcement affidavit, he boarded a Virgin American flight at Kennedy Airport in New York and flew to LAX. He was found on the flight after it took off, was asked if he had a boarding pass. He produced something. But it turned out that the boarding pass and the ticket were for the day before. And they were not in his name. They then asked him for identification and he produced a University of Michigan I.D. Then a few days later, on June 29th, he tried to board a Delta flight, this time flying from Los Angeles to Atlanta. He was stopped by a Delta agent at the gate and was told he did not have a valid boarding pass. Once again, it was for a different date and it turns out it was in a different name.

So at that point, law enforcement queried him and they asked to look in his bag. In his bag, they found over 10 boarding passes in various names. This is the allegation in the affidavit.

The only I.D. he was able to produce was from the University of Michigan. He claimed that a U.S. passport had been stolen, that he also had a Nigerian passport but that that was at his home.

Now apparently at two airports this individual got through a security checkpoint where you are supposed to show a government-issued identification as well as a valid boarding pass.

But this morning, the TSA gave us only this on-the-record statement saying every passenger that passes through security checkpoints are subject to many layers of security including through physical screening at the checkpoint. TSA's review of this matter indicates that the passenger went through screening.

So he went through physical screening but, once again, why didn't they catch the fact that he didn't have a valid I.D., that he didn't have a valid boarding pass, and why was he able to board the Virgin America flight without a valid boarding pass?

At most boarding gates, you have an electronic reading that read your boarding pass. So there is still a lot of questions here that we're asking this morning. We don't have all the answers but for the time being this guy is in custody and they are continuing the investigation to find out exactly what happened.

Back to you.

PHILLIPS: All right. Jeanne, thanks.

And in New Mexico, a sensor relief in the air along with choking smoke and flyer embers. Fire crews say that even though flames have devoured 90,000 acres and counting, the desperate effort to protect the Los Alamos National Lab, well, it's paying off. Radioactive waste and other toxic materials are out of reach from the massive wildfire.

And CNN's Reynolds Wolf is right there in Los Alamos with the latest.

So, Reynolds, what exactly turned the tide?

REYNOLDS WOLF, AMS METEOROLOGIST: Well, the real turning point was actually yesterday, Kyra. What they did is they set up a preventive burn. A preventive burn on the western fringe of the laboratory which is actually right across this ravine. You can barely see it due to the heavy smoke. And the action began yesterday afternoon. In fact we show you the video. You'll see the video that was captured by CNN's John Torogawi (ph). Very, very thick smoke from the hillside. Some of it got within miles of the laboratory itself but although it looks daunting it was actually part of the controlled burn. The strategy to remove a lot of the vegetation that would actually feed that fire, of course, possibly throughout the laboratory.

But they did a great job. I can tell you that Los Alamos Fire Chief Doug Tucker feels very, very thankful for the great work done by the men and women of the firefighters, 341 of them, that have been working the 16-hour shifts. And one of the signs that things are really getting back to normal is that he is hoping that people will return to Los Alamos either tomorrow or Saturday to come back to their homes.

So certainly some good news on this front -- Kyra.

PHILLIPS: All right. That is good news. Reynolds, thanks.

Mitt Romney going after President Obama on the economy today and he's using a pretty symbolic backdrop.

CNN's Jim Acosta from Washington now with the story.

Hey, Jim.

JIM ACOSTA, CNN CORRESPONDENT: Good morning, Kyra.

Yes, it could be a preview, a sneak preview of the upcoming general election campaign if Mitt Romney can only get the GOP nomination. Both he and President Obama will up in Pennsylvania later today for fundraisers but Mitt Romney is going to make a pit stop outside of a metal works factory up in Allentown to make some pretty key points about the economy.

This is a factory that President Obama visited in 2009 touting his stimulus plan. Well, the factory, Kyra, closed a few months ago back in January and Mitt Romney has already released a Web video this morning with the message that President Obama isn't working.

This has been sort of a catch phrase of the Romney campaign and one he'll be trying out later today up in Pennsylvania. So that is something we will definitely be watching.

On the lighter side of things, here in Washington, D.C., speaking of politicians and money, Stephen Colbert, you've probably heard of him. He hosts "The Colbert Report" -- "Colbert Report," I should say, over there on Comedy Central.

He will be testifying in front of the Federal Election Commission later today about -- and a lot of his fans and viewers have heard all about this -- how Colbert wants to start his own super PAC sort of like the one that Karl Rove started, American Crossroads. These are these big political actions committees that had been given the green light by the Supreme Court to raise gobs and gobs of money. Well, as a joke, as a way to call attention to this, Stephen Colbert wants to start his own super PAC. He's going to be talking about this later this morning at the FEC. He's going to be testifying, as a matter of fact, Kyra.

And what is so interesting about this is that in just the last couple of days, some campaign finance activists, people here in Washington who are concerned about the influence of money in politics, are actually going to be testifying against and they've been acting against Stephen Colbert in the forming of the super PAC because they say what Colbert is actually trying to do could open up the floodgates to even more money into the political process.

And they say that is not a good idea. So we'll be seeing what kind of antics might be going on down at the FEC later today.

PHILLIPS: We can only imagine how this is going to play out.

ACOSTA: Yes.

PHILLIPS: Right, Jim?

(LAUGHTER)

ACOSTA: We can only imagine. You know, at least it's going to be good for a laugh.

PHILLIPS: Yes.

ACOSTA: But we might not all be laughing, depending on how this plays out on the upcoming campaign.

PHILLIPS: Yes. Point well made. Jim, thanks.

ACOSTA: You bet.

PHILLIPS: And we're going to have a next -- your next political update just about an hour. But you can also find the latest political news 24/7 on our Web site CNNPolitics.com.

All right. As we speak, the royal newlyweds are crossing the pond, shall we say, en route to Canada. Prince William and Duchess Kate will spend nine days crisscrossing the country. And as they head to Ottawa, well, another royal couple is heading to the altar, so we think.

Zain Verjee joining us from London.

A little last-minute intrigue in Monaco, wouldn't you say?

ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: Yes. Oh, yes, Kyra.

This is not the kind of a royal wedding that they want grabbing the headlines here. This is more like a Hollywood movie script, OK? What's happening is Prince Albert is marrying a former Olympic swimmer from South Africa. Her name is Charlene Wittstock. And the bride to be, apparently, according to one French magazine report, "L'Express," she did a runner.

She bolted. She headed over to Niece Airport. She wanted a one- way ticket to South Africa. But the officials there said, whoa, whoa, whoa. You can't go anywhere. There's a wedding that you need to be at. They called up Prince Albert. He came over and was apparently described as intensely persuasive, and so she went back.

Now the palace has put out a statement and they say, look, there is no rift here but what they are doing is they're focusing on whoever it was that leaked this to the press. So they are on a hunt for that person.

She got freaked out, Kyra, because apparently there are secrets that she's learning about and have shocked her. We can't confirm any of those. I'll share one headline with from this site, from the "Irish Independent." The headline reads, "Prince puts on brave face as bride's cold feet are talk of town." It reads, "With mud flying less than two days before the royal wedding, the message from the rock is that the show is on."

It's an $18 million show, Kyra. Thousands of guests are coming. Lots of dignitaries. Right now, they're saying everything is cool, everything is OK. Who knows? You think she may leave him at the altar?

PHILLIPS: I don't know. A lot of people watching this. If anyone is going to get the scoop, it's going to be you, Zain. Let us know.

(LAUGHTER)

VERJEE: All right.

PHILLIPS: All right.

VERJEE: We knew she was a former Olympic swimmer and couldn't get away from the airport. She could swim away.

PHILLIPS: She can swim and she can run, apparently.

All right, we're just getting this video in out of France. You could see there -- I don't know if we can re-rack it. But what -- there you go. You see the president there, the French President Sarkozy getting pulled by the arm. Someone apparently came in, grabbed his sleeve and you can see his bodyguards taking the guy to the ground.

We just got this video. We are working the story trying to find out exactly who this guy is, how he got so close to the president, and we'll bring you the details as we get it.

All right, let's head to Florida now. The Casey Anthony trial. Will she testify? It seems to be the burning question for all of those individuals fixated on this murder trial. The defense is expected to rest in its case today.

Let's talk more about this with Holly Hughes, a criminal defense attorney and former prosecutor.

So what do you think will unfold today?

HOLLY HUGHES, CRIMINAL DEFENSE ATTORNEY/FORMER PROSECUTOR: Well, that is the $64,000 question, Kyra. Right now there's some great drama going on. The defense has called to the stand Crystal Holloway, aka, River Cruz. She's the woman who alleges that she had an affair with George Anthony.

Two days ago, George Anthony denied that affair and a little scoop for you, Kyra, is that that very night, River Cruz went on blog talk radio, in "The Levi Page Show," and she was hot. George Anthony denied being with her, she was cussing like salty sailor. So I'm really waiting to see what happens in this courtroom this morning.

It could be some very explosive testimony because she was just so angry and giving out nasty details and all of the stuff on the radio. So it was quite the interview.

After she is done, we need to see if they are going to put Casey on the stand because legally speaking, Kyra, they stood up in opening, Jose Baez, the lead defense attorney for Casey Anthony, and he alleged all of these things. There were sexual abuse by George, there were sexual abuse by Lee, that's her father and her brother.

And then he said the baby drowned in the swimming pool. So far there has been no testimony that any of those things occurred and if they don't get testimony in, there is no evidence of it, so he cannot get up in closing argument and argue that to the jury. They can't even consider it. He's got to put her up. If he doesn't, he's on a sinking ship and going down fast.

PHILLIPS: I tell you what, a lot of questions being thrown out there, too. A lot of doubt being waved.

All right, Holly, I know you're going to be with us. We're actually looking at live pictures right now from the courtroom there in Orlando, Florida.

Holly is going to be with us throughout the next couple of hours. You're watching this, we're watching this. And that is the big question today. Will Casey Anthony take the stand in her murder trial today.

Also President Obama skewers Republicans and rails against political games. Did he win points with the public?

Our David Gergen breaks down the president's feisty news conference.

Plus Prince William and Kate starting their first official foreign trip as a couple from the home of hockey to the surf in California. We've got their itinerary.

(COMMERCIAL BREAK)

PHILLIPS: Checking cross country:

Doctors will treat Arizona mass shooting suspect Jared Loughner with mind-altering medications to an effort to restore mental competency. Yesterday, a federal judge rejected a defense motion that claims forcibly medicating Loughner violated his rights.

Bigger classes and less teachers next year for students in Milwaukee. Friday, more than 300 teachers will be out of the job due to steep budget cuts.

Rhode Island lawmakers approved a bill yesterday that would allow same-sex couples to enter civil unions. The governor is expected to sign it.

And turtles to blame for the flight delays at New York's Kennedy Airport yesterday. More than a hundred of these guys turned up on the tarmac, spilling trouble in the air and on the ground.

Take a listen.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: American 1009, there's a report of a turtle on the runway. Do you want to have it removed first?

UNIDENTIFIED MALE: Sure.

UNIDENTIFIED MALE: American 1009, cancel takeoff clearance, hold the position.

UNIDENTIFIED MALE: Holding position American 1009. I was wondering where those things were.

(END AUDIO CLIP)

PHILLIPS: Do you hear that? Wondering where they were? Apparently, turtle migration n at JFK is an annual affair. The sand there is a popular egg laying and nesting area.

And get this -- the turtles are on Twitter. They have 5,700 plus followers.

I can see David Gergen laughing. Yes. We will talk about the turtles as well maybe.

But let's start with President Obama calling out Congress and trying to assure Americans that he feels their pain. He says as the economy struggles and jobs are disappearing, lawmakers need to strike a deal on the debt crisis and put their vacations on hold.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: You need to be here. I've been here. I've been doing Afghanistan and bin Laden and the Greek crisis.

You stay here. Let's get it done.

(END VIDEO CLIP)

PHILLIPS: This time yesterday, we were asking David Gergen what the president needed to say in his news conference -- and, David, you answered or you advised, rather, for a president. So, let's go ahead and tap into those insights. All of these negotiations going as slow as those turtles there at JFK, no doubt!

Now, you wrote a piece for CNN.com and as you put it, the president skewered Republicans and, yes, that gets him political points. But for the average Americans out of work and struggling to survive, are they tired of this bickering and just want relief?

DAVID GERGEN, CNN SR. POLITICAL ANALYST: So tired, so tired, Kyra. So many people are looking for some kind of -- the clouds to lift to have a chance to go back to work and make a decent living and have the value of your house go up, instead of down.

You know, so, people want action from Washington and what we are still hearing is a lot of political rhetoric. It's clear that the negotiations haven't yet come any more close to the finish line for some sort of megadeal.

The president, yesterday, came out. He was feisty, especially in going after Republicans. I did think he made some political points out in the countryside by arguing, look, the Republicans, they're refusing -- raise taxes on billionaires and people who fly corporate jets, on hedge fund types, on oil industries. Instead they want to cut for the middle class, cut benefit for the middle class. That kind of argument, that populist argument does have appeal.

But at the same time, the president took snide jabs at the Republicans -- just like you -- the clip you just showed about, you know, telling them not to go home. You know, those are the kinds of, sort of, small personal insults and slights that get people angry on the other side, and I think make it more difficult to get to an agreement. And I think we're going to have some very, very tough negotiations just ahead.

PHILLIPS: So, does this, as you talk about, the anger on both sides then. Does this poison any chance of a deficit plan by August 2nd, that hard deadline, he keeps talking about?

GERGEN: Well, certainly, Kyra, what we saw yesterday was frustration and exasperation on part of the president and I think reflects to some degree what's going on among Democrats and among Republicans.

I have to tell you, I thought yesterday's press conference, while it helped politically the president around the country and I think protects him a little bit, if the talks all break down, it's so -- I think it's sort of divisive, I think it alienated some Republicans and I think the chances of getting an agreement are actually further away after yesterday, or at least the chances -- here, the prospect is really this. That instead of getting $4 trillion deal, which is what the country needs and what the president says we need, we're likely to get a deal maybe one quarter of that, maybe $1 trillion that will simply be a patch -- kick the can down the road for the really hard and tough negotiations to occur later, maybe even after the elections.

And the problem with that is that's business as usual in Washington. But the problem is the credit rating agencies like Moody's yesterday said, hey, guys if you really don't come up with a big credible plan, a big plan, there's a very strong possibility that we will downgrade your credit rating.

Downgrading of American credit rating would raise interest rates and it will be expensive for a lot of middle class Americans who need help right now.

PHILLIPS: And both the financial markets and Americans will suffer even more.

We'll keep following it. David Gergen, thanks so much.

GERGEN: Follow those turtles!

PHILLIPS: Follow those turtles in the negotiations that are moving at a very slow pace. David, thanks.

GERGEN: OK.

PHILLIPS: Jay Leno heads across the pond to London to talk about American politics.

(BEGIN VIDEO CLIP)

JAY LENO, TALK SHOW HOST: Bill Clinton was the golden age of comedy. It doesn't get any better than that. George Bush, pretty good there! Oh, boy, fantastic!

(END VIDEO CLIP)

PHILLIPS: So, what did Leno have to say about President Obama? Hear what he told our Zain Verjee and how Zain fired back.

(COMMERCIAL BREAK)

PHILLIPS: All right. Let's hit showbiz headlines. "The Voice," NBC's answer to "American Idol" wrapped its first season last night.

(BEGIN VIDEO CLIP)

ANNOUNCER: The winner of "The Voice" is -- Javier Colon.

(CHEERS)

(END VIDEO CLIP)

PHILLIPS: The vote was super close -- only 2 percent separating Javier and his runner up, Dia Frampton.

And he played one of Facebook's founders in the movie "The Social Network," but Justin Timberlake is a MySpace man now. The singer/actor bought a stake in the site which changed hands yesterday in a bargain basement deal. Timberlake says he is, quote, "excited to revitalize MySpace and bring artist and fans together."

And talk about method acting, Charlie Sheen just revealed he took steroids to help him play Ricky "Wild Thing" Vaughn, the out of control pitcher in the Major Leagues. Sheen says steroid helped his fastball but made him a little cranky.

So, Zain Verjee took on Jay Leno, and it's not easy to take on a late night comedian but she did and she joins you live from London to tell us.

Tell us how it all went down. Did you break any scoop with Jay?

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: I don't think I broke any scoop but I a lot of fun for 10 minutes. He was really cool. He was -- you know, he was having a lot of fun. He was enjoying London.

He was invited here by Jaguar to check out their cars. You know, he is a huge car collector. He says you just can't get enough of it. He drove Princess Diana's old cars as well. And so, he was excited about that.

But we talked about politics. I asked him whether he thought that President Obama was someone he could make fun of or not. Listen to what he said.

(BEGIN VIDEO CLIP)

LENO: Bill Clinton was the golden age of comedy, doesn't get any better than that. George Bush, pretty good there! Oh, boy, yes, fantastic! And, of course, Obama, not so much.

VERJEE: Why?

LENO: Well, he is well-spoken and he's serious and he does not seem to have the sort of usual flaws. He uses a teleprompter too much but that's OK. But we have Sarah Palin and we have so many other people, so it's actually -- I think it's going to be OK.

(END VIDEO CLIP)

VERJEE: And, Kyra, he also said his old time favorite material is when there is a man behaving badly, then he can just go for the jugular. Nobody else is terribly hurt and nobody died, he said but, you know, that's the thing that he enjoys.

PHILLIPS: So, he never behaves badly, is what he is telling you, so he gets the rip on everybody else?

(LAUGHTER)

PHILLIPS: He was very well behaved with you, I must say. OK.

Well, did tell you who he is pulling for in the upcoming election?

VERJEE: No. He said, look, I'm not going to give you my opinion and tell you who I'm pulling for. He just wouldn't do it.

But, he did say this. Listen.

(BEGIN VIDEO CLIP)

VERJEE: Who do you think will give you the best fodder for being a presidential candidate? Give you the best material, Sarah Palin?

LENO: Sarah Palin is a fantastic -- I mean, she said last week --

VERJEE: She's in a movie now.

LENO: Yes, she hat fire in the belly, that's what she said. But it's not the fire in the belly. It's the air in the head. That's --

VERJEE: The air in the head?

LENO: The air in the head. I think that's -- fire in the belly is not a problem, but air in the head.

(END VIDEO CLIP)

VERJEE: Ouch, Kyra! He had fun with that one, too.

I had a little bit fun, too, you know? I told him, well, hang on. You have all of these cars. You love them. You can't stop talking about them.

But do you have a Kenyan mukokotini (ph)? And he didn't. And let me show you what a Kenyan mukokotini is. It's a wheelbarrow, right?

This is it. This is all over Kenya. This is what's used for transportation. And people can't afford cars. So the man in front there drags it and there's a tire under mukokotini that is used as a brake and they carry mattresses and cans of water.

And Jay Leno didn't have this. I advised him if he's interested in transportation, this may be an interesting collector's piece.

What do you think?

PHILLIPS: Oh, yes. I'm sure, you said have said to him, you know what they say about a man that pulls a yukatini (ph) -- how do you say it?

VERJEE: What is it? What is the answer?

PHILLIPS: I think we'll move on to the next story!

(LAUGHTER)

PHILLIPS: See you soon, Zain!

VERJEE: All right, Kyra.

PHILLIPS: Coming up, Prince William and Kate, somewhere over the Atlantic Ocean right now. They actually touched down in Canada in just a few hours and we're going to see what they've got planned.

And a farewell to arms. A good-bye to Robert Gates. Live pictures now from the Pentagon. This hour, a tribute to the outstanding sec-def. We'll go live to the Pentagon.

(COMMERCIAL BREAK)

PHILLIPS: All right. Let's go ahead and check our top stories.

We just got this video in of someone grabbing French President Nicolas Sarkozy, trying to actually pull him down to the ground but his bodyguards wrestled the would-be attacker and took him to the ground.

The defense may rest as early as today in the Casey Anthony murder trial. George Anthony's alleged mistress, Krystal Holloway, on the stand right now, prosecutors cross-examining her.

And firefighters making progress against a wildfire burning near Los Alamos, New Mexico. Nearly 10,000 people haven't been allowed to return to their home yet.

And our Jeanne Meserve reporting so far, no sign of terrorism in a stowaway case. A Nigerian man allegedly flew from New York to L.A. without a value valid boarding pass or ID.

Royal newlyweds William and Kate beginning their first official overseas trip together. They're due to land in Ottawa, Canada, just a few hours from now.

And, of course, CNN's Max Foster is there.

Max, they've got a pretty busy schedule.

MAX FOSTER, CNN CORRESPONDENT: They certainly have. I'm just showing you some preparations here. It's going to be a big day tomorrow. Canada Day, they call it -- lots of celebrations and parties and performances.

And they're doing all the rehearsal there. Currently on the big stage that's been set out for them and the couple will be watching that tomorrow lunch time. And also another party in the evening, a big event in Canada tomorrow celebrating Canada Day.

As you say, the couple currently over the Atlantic in a military jet and in the hands of the Canadian government, because they are the Canadian royal family as well as the British royal family and they've got a very busy day when they get here.

(BEGIN VIDEOTAPE)

FOSTER (voice-over): This was the welcome Prince William got when he traveled to Canada in 1998, the year after his mother Diana died.

He now returns with his wife.

They arrive in Ottawa in time for this year's Canada Day celebrations.

CROWD: Happy Canada Day!

FOSTER: As the next generation of royals, they are expected to connect with young people.

From the capital, it's on to Quebec, a children's hospital in Montreal, the citadel in Quebec City.

A reminder of their wedding day in Prince Edward Island, with a carriage procession to Charlottetown.

As a search and rescue pilot, Prince William is keen to take part in a demonstration with his world renowned counterparts in Canada. Some risky maneuvers are expected and some nervous royal aides will be watching on.

The couple will also take to the water, each in their own dragon boats revealing their competitive streaks. Catherine is a very experienced rower.

From PEI, it's up to the wilderness to the Northwest Territories.

The final stop in Canada is Calgary, Alberta, in time for the stampede. It's all about rodeos, rounding sheep and wagon racing, a rare chance to go the royals in cowboy gear. Yes, you heard it right.

(END VIDEOTAPE)

FOSTER: So a very busy (INAUDIBLE) as you can see. And one thing, we don't know what she will be wearing but we'll find out, Kyra, around four hours from now.

PHILLIPS: Max, we'll be watching closely. All right. We'll check in with you.

All right. We're getting word now from the Hill. Actually, a source telling our Kate Bolduan that Harry Reid -- oh, he's announcing it right now actually about canceling the July 4th recess as the August 2nd deadline looming over the debt ceiling.

Let's listen.

SEN. HARRY REID (D-NV), MAJORITY LEADER: As the president often said that with liberty comes responsibility. We should take that responsibility seriously. I'm confident we do.

That's why the Senate will reconvene on Tuesday, the day after the 4th. We'll do that because we have work to do. We'll be in session that week, that's next week, with the first vote on July 5th. We'll determine what time that vote will be on July 5th -- likely in the afternoon because of the traveling problems with the 4th the July the previous day.

There is so much to do to put Americans back to work, cut our deficit, and our economy back to work. It's very important we do this. That moment is too important, the obstacles too steep and the time too short to waste even a moment.

I hope my Republican colleagues will put politics aside and help Democrats and Congress with the responsibility to the American people.

For some Republicans in Congress who say the United States government has less responsibility to pay its bills than struggling families all across our great country. As a default crises approaches, the Republicans are saying we should simply stop cutting checks, the national --

PHILLIPS: All right. We're just tuning into Senator Harry Reid once again saying they will not take a recess this July 4th. You know the deadline is looming, August 2nd, to hammer out negotiations on the debt ceiling. We'll continue to follow what the senator has to say there on the floor.

Meanwhile, coming up, Medicare announces today that it's going to will pay for a new drug to treat prostate cancer. It could adds months to the lives of those who have cancer.

Our Elizabeth Cohen is joining us with that, right after the break.

(COMMERCIAL BREAK)

PHILLIPS: All right. Opening bell rang a few minutes ago. Checking the big board right now. Dow Industrials up 45 points.

All right. We're talking about a new drug promising to add months to the lives of men suffering prostate cancer. But it could also add billions of dollars to the nation's medical bills. Prostate cancer, as you know, is one of the most common cancers in men, and two out of three are on Medicare.

So, we're going to find out today if the government will actually foot the bill for this.

Senior medical correspondent Elizabeth Cohen is joining me now to talk about -- first of all, I guess, how expensive is this drug cost? How expensive is it?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: All right. Let's take a look at this. The drug is called Provenge, and men take it who has prostate cancer and it costs $93,000 for a course of treatment. And that gets on average, that will get a man four extra more months of life. In other words, four more months than they would have without the drug.

And, you know, Kyra, if you're a man with prostate cancer, you say, you know, you can't put a price tag on four more months with my loved ones. Of course, it's worth $93,000.

PHILLIPS: Is it the only drug out there that can do this?

COHEN: It is. And, you know, this is a really exciting time for prostate cancer drugs. There are two other relatively new drugs and they're about the same. Four extra months of life when you take these drugs, cost also about $93,000 for a course of treatment.

PHILLIPS: All right. So -- I mean, this could get really expensive, obviously, and taxpayers are saying, hey, you know, some are saying, I don't want to pay for this. There's debate out there.

COHEN: That's right, because most of the men taking these drugs are on Medicare. So, it's the taxpayers who are going to pay $93,000 per person and tens of thousands of men have prostate cancer.

And, you know, this is a tough thing to talk about. Nobody, including me, likes to say -- well, is four months of life worth $93,000?

PHILLIPS: Yes.

COHEN: It depends who you're asking because, you know, as some people have pointed out, you could use that money other places. You can't save more lives. You can take that same $93,000 and save more lives.

And Medicare is already in a really difficult financial place.

PHILLIPS: Well, what do you think? Is Medicare going to pay?

COHEN: You know, the folks I talked to say they think Medicare is going to pay and one big reason is that this administration is still reeling from the whole death panel debate. Do you remember that during the health care reform?

PHILLIPS: Of course.

COHEN: And no one wants to say, the government is out to kill grandpas. And so, chances are, they will approve this.

PHILLIPS: Got it. All right. We'll follow it. Thanks, Elizabeth.

We're also watching the Casey Anthony trial. Right now, George Anthony's alleged mistress is on the stand. We're going to talk about it right after a break.

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PHILLIPS: Checking stories cross country.

This one out of Fall River, Mass -- it's just hard believe -- a woman's body goes unnoticed at the bottom of a public pool for two days. So, now dozens of pools are closed. Lifeguards are on administrative leave. An investigation has begun.

A hostage call turned hoax in Collier County, Florida. A teen living at this address saying he was playing an Xbox game with gamer from Canada. The next thing he knew, the SWAT Team was at his doorstep. His gaming buddy now suspected of making the false report.

In Glen Ellyn, Illinois, robbers with a conscience? Well, a group -- church group, actually, was robbed at gun point, at knife point in Columbia. But the following day, the thieves apologized even returning some of the stolen loot. Apparently, the alleged gang members felt guilty when they found out the students were there doing mission work.

And better later than never in Louisville, Kentucky, where flooding along the Ohio River meant two-month delay for the annual great steamboat race. How fast exactly do steamboats go? Well, congrats to the hometown ship for winning last night's race.

Casey Anthony murder trial winding down today. And, right now, a woman who says she had an affair with Casey's dad is on the dad.

Holly Hughes, criminal defense attorney and former prosecutor, joining me now.

KYRA PHILLIPS, CNN ANCHOR: The Casey Anthony murder trial winding down today and right now, a woman who says she had an affair with Casey's dad is on the stand. Holly Hughes, a criminal defense attorney and former prosecutor is joining me now.

All right, let's talk about the significance of listening to this woman Krystal Holloway, the alleged mistress.

HOLLY HUGHES, CRIMINAL DEFENSE ATTORNEY/FORMER PROSECUTOR: Well, the big significance for the defense is she is testifying in direct opposition to something George Anthony said on the stand. So he got himself in that witness chair, he raised his hand, he took an oath to tell the truth and he said, I didn't have an affair with that woman.

In fact, he laughed. He was smug and arrogant about it when he denied it, Kyra. What they have now done is called this woman, Krystal Holloway to the stand. And she is saying, oh, no, we did have an affair.

(CROSSTALK)

PHILLIPS: In her apartment, isn't it.

HUGHES: Oh yes, she -- she said, she is a little upset that he is not claiming it and naming it, ok? You know, so what she wants is she wants to be able to tell the world this is my story.

So if the defense can prove to the jury, if they think that she is credible -- and that's what it all comes down to -- then they can argue George is a liar, he's a big, fat liar. So obviously, he must be lying when he denied the sexual abuse. Obviously, he must be lying when he denies knowing anything about this drowned little baby.

So that's where they're going. The judge will charge the jury at the end of this case on what the law is. And one of the instructions we're going to hear him give is credibility of witnesses. And he is going to say to that jury, credibility of witnesses for you and you alone to decide. It doesn't matter what the attorneys think, it doesn't matter what I think. And, P.S., if you find somebody not credible, you can throw out all of their testimony. You don't have to listen to one thing they said.

That's the big apple that the defense is reaching for right now. They want that prize where the jury goes, don't really believe George because that gives credence to their defense.

PHILLIPS: We'll hear it live out of Orlando, Florida right now, right along with you. Holly, thank you so much.

On the last day on the job, the beginning of a new era for the nation's military; minutes from now, a farewell ceremony for Defense Secretary Robert Gates. We'll take you live to the Pentagon.

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PHILLIPS: All right, minutes from now at the Pentagon, President Obama will deliver remarks at the Armed Forces farewell tribute to Robert Gates. This is the last day on the job for the outgoing Sec Def who oversaw two wars and military operations around the world.

Barbara Starr has probably covered all of them. Barbara, quickly tell us what's going to happen at this ceremony?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know Kyra this is the U.S. military "Pomp & Circumstance" to give Bob Gates a stand up after more than four years on the job. We will see President Obama deliver remarks; there will bands, there will a 19 gun salute, "Pomp and Circumstance", "Ruffles and Flourishes", the Pipe and Drum Corps, all of it here a day for the Pentagon to celebrate Bob Gate's tenure here.

But I think one of the things on the human interest side people will be watching for when Secretary Gates gets up to deliver his final remarks. He is expected to get a bit emotional about the troops. This guy has been in Washington for decades but he -- when it comes to the troops I have to tell you his voice breaks, his eyes tear up. And we're all waiting to see you know whether he'll be able to hold it all together.

Actually it's not quite his last day on the job. He will fly this afternoon to his home in Washington State but officially not step down until Leon Panetta takes the oath of office tomorrow morning -- Kyra.

PHILLIPS: Wait -- well, which leads me to my next question, Leon Panetta, quite a background there as well. Diversity of positions he's taken on. How's that expected to impact strategy in the wars that the U.S. is fighting right now -- Barbara?

STARR: Well, yes I mean you really hit it. He has been the OMB director, chair of the House Budget Committee, he has a lot of expertise in fiscal policy, budgeting and that's really front and center now at the Pentagon. How to get another $400 billion out of the Defense budget in the coming years.

So that will be on his plate but also wrapping up the wars in Iraq and Afghanistan. Afghanistan, of course, particularly controversial as Panetta climbs the stairs into the Pentagon because just -- you know, over the last 48 hours we saw this terrible hotel attack in Kabul the capital. Once again, raising questions about security in Afghanistan at the very time the President is determined to start bringing U.S. troops home -- Kyra.

PHILLIPS: All right, Barbara Starr, we will -- as soon as we see -- well, actually we're seeing Bob Gates and the President of the United States stepping out right now and when they step up to the mike we'll take it live, Barbara -- we're both following it here from the CNN NEWSROOM.

Once again, live pictures now, of the President of the United States and the outgoing Secretary of Defense Gates and it looks like, is that Mullen on the other side there. It's kind of hard to see at the shadow. Yes it does looks like the Chairman of the Joint Chiefs.

All right, we'll take that live as soon as they step up to the mike.

All right here are some of the other stories that are developing later today.

In Boston, accused mob boss James "Whitey" Bulger has a court appearance in just about 90 minutes.

At 2:00 p.m. in Washington, lawmakers take up the topic of proposed U.S. troop withdrawals from Afghanistan and that same hour the crew of the space shuttle "Discovery" held a news conference about their historic final mission.

And by the way, CNN is your place to watch the final shuttle launch. It's set for a week from Friday. Our coverage begins at 10:00 Eastern.

All right, we're following lots of developments in the next hour of the CNN NEWSROOM. Let's go ahead and check in first with Zain Verjee live in London -- Zain.

ZAIN VERJEE, ANCHOR, CNN INTERNATIONAL: Hi Kyra. We've got some pretty dramatic video of the French President, Nicolas Sarkozy being shoved. How did it happen? Where was his security? We'll tell you next.

CAROL COSTELLO, CNN CORRESPONDENT: I'm Carol Costello in Orlando, Florida. A woman named Krystal Holloway testified that George Anthony told her how Caylee Anthony died. I'll have more testimony for you at the top of the hour.

PHILLIPS: All right. Ladies thanks.

And also ahead the cash crop of marijuana -- it's not just for stoners and criminals anymore. Some cash-strapped cities are playing with the big business of medical marijuana. I'll explain next hour.

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PHILLIPS: Women's semi-finals under way in Wimbledon. The men's semis will go on tomorrow without one of the sport's biggest names. Roger Federer is out. Twelfth seeded Jo-Wilfried Tsonga beat him. Federer won the first two sets yesterday. He had never lost a grand slam match with that lead; 178-0, make it 178-1.

Tsonga used a booming serve and great ground strokes to take the match in five sets. The Frenchman fell to his knees after that win and a little old victory dance, of course. He'll play in his third career grand slam semi-final.

Also advancing to semis, Britain's Andy Murray. He beat Spain's Feliciano Lopez in straight sets. Andy's mom made highlights, if you might remember, tweeting deliciano (ph) Lopez. But when it came to the match, blood was thicker than a flirtation. And Judy Murray (ph) well, was totally in her son's court.

Police in Seattle, pretty red-faced after doing something with an assault rifle that you've probably done yourself a time or two with a purse or wallet or even a cup of Joe.

CNN's Jeanne Moos reports.

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JEANNE MOOS, CNN CORRESPONDENT: Ever drive off with something sitting on your roof? Imagine you're a cop and you're driving around with this thing on your trunk. Even the Seattle police say --

UNIDENTIFIED MALE: It's a careless act.

MOOS: -- a semiautomatic rifle --

UNIDENTIFIED MALE: We're very embarrassed.

MOOS: -- probably loaded say police.

UNIDENTIFIED MALE: People should expect more.

MOOS: sitting unattended on a trunk of a patrol parked in downtown Seattle. Passerby Nick Gonzalez snapped a picture, alerted officers on bike, then sent the photos to Seattle's alternative newspaper "The Stranger". It sure was a strange sight.

UNIDENTIFIED MALE: What?

UNIDENTIFIED FEMALE: Oops, that wasn't very smart.

MOOS: Now it's one thing to leave, say, a cup of coffee on the roof and take off, but the gun apparently didn't fall off. A source confirms to CNN that one officer was unloading his car in the precinct garage. He set the rifle down on the trunk of a second car, then forgot it.

A lieutenant came out, got in a car and drove off with a gun on the trunk. She parked a few blocks away to stop at a Starbucks. That's when passersby saw the rifle.

The whole thing feels like a scene out of "There's Something about Mary". Ben Stiller rests Cameron Diaz's dog in a body cast on the roof then forgets it and drives off.

Now, when police do this with a gun, it would most likely be considered minor misconduct and result in a reprimand or a suspension of a day or two.

Of course there are worse things you could leave on top of your car. On the MTV series "Jackass", they put a baby doll on the roof --

UNIDENTIFIED MALE: Stop your car. Hey. Hey. Stop.

MOOS: -- to see how folks would react.

UNIDENTIFIED FEMALE: Hey.

UNIDENTIFIED MALE: Hey.

UNIDENTIFIED MALE: Oh, my god.

UNIDENTIFIED FEMALE: Stop, stop.

UNIDENTIFIED MALE: Oh, my (EXPLETIVE DELETED).

MOOS: The real mystery is how did that assault rifle not fall off on the drive to Starbucks? Truth be told, we had to do a couple of takes because our coffee cup stuck.

Take off.

Jeanne Moos, CNN, New York.

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