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Indefinite Recess in Anthony Trial; Los Alamos National Lab Closed; Case Against Former IMF Chief in Doubt; NBA Lockout Begins; Players Dispute Estimated Losses; Canada's Royal Reception; Minnesota's Government Shuts Down; Immigration Law Takes Effect Today; Golden Gate Ferry Service Canceled; Panetta Takes Control of Pentagon; Clinton Weighs In on 2012 Election; Hints of "Sex and The City" Prequel
Aired July 01, 2011 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: It's 10:00 a.m. on the East Coast, 7:00 a.m. out West. I'm Kyra Phillips. Thanks for joining us this morning. The Casey Anthony murder trial goes on indefinite recess as the defense questions state witnesses. The judge says the case could go to the jury this weekend.
The Los Alamos National Lab closed for the fifth day as high winds make problems for fire crews -- 94,000 acres have burned. So far, toxic materials are safe.
The royal couple awaken in Canada this morning. Prince William and Duchess Kate are in Ottawa. Their first official trip since their April wedding.
We begin with a bombshell announcement in a shocking criminal case that may not have been a crime after all. Sources say that prosecutors now have serious doubts about the hotel maid who accused Dominique Strauss-Kahn of sexually assaulting her.
The accusations caused him his leadership of the International Monetary Fund and likely his bid to become France's next president. Susan Candiotti has the latest. So Susan, what are the specific issues regarding her credibility right now?
SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, we know that there are about four or five of them, according to a source familiar with the case. One of them involves a political asylum application that she made from her native Guinea when she came to the United States in which she claimed that she had been sexually assaulted.
Sources say that they are calling that an outright lie and that has been admitted now. It is one of several credibility issues they are having. So when they go into court this day, the defense and prosecutors will likely agree on modifying his bail conditions, Kyra.
And this is a stunning development because it was information about these credibility issues that came from prosecutors made to defense attorneys that prompted a meeting between both sides yesterday on Thursday.
PHILLIPS: And just to remind everyone, he hasn't been in a jail cell all this time. He's basically been living in a lap of luxury.
CANDIOTTI: He has. He's been living in quite a posh town home in lower Manhattan in the meat packing district called Tribeca. He's been forced to pay for his own security, which amounts to up to maybe a quarter of a million dollars.
That includes 24 hour surveillance. He had to wear an ankle bracelet. In fact, his attorneys will probably be asking the court to allow him to travel within the United States.
He's not likely to get his passport, so it is possible he may even be released on his own recognizance. That's one of the issues likely to be discussed in court this day. Kyra --
PHILLIPS: All right, Susan Candiotti. We'll follow it. Thanks, Susan.
Well, the NFL is not the only league in a lockout right now. NBA owners have locked out players after the two sides failed to reach a new deal.
Sure, it's the offseason, but owners, players and fans are pretty worried that the dispute could jeopardize next season. CNN's Mark McKay joining us now talking about the big issues that are separating the sides here.
MARK MCKAY, CNN SPORTS: You talk about the offseason, Kyra. You know, what a wonderful end of the season, The Mavericks and the Heat. It just clouds this all over, because the issues basically come down to revenue and how do you split the revenue between the owners and players.
The owners have come out and said they want a complete change of the entire system. They would like a hard salary cap as opposed to the soft one that's currently on the table.
They would also like to roll back existing contracts. The players, of course, they don't want to have any kind of hard cap on their salaries. They want to continue to earn their money. They adamantly oppose any kind of cap.
They question the NBA'S assertion that they are losing $300 million. So Kyra, it really is something when the NBA commissioner comes out, David Stern and says it concerns him because there's such a huge philosophical divide between the owners and the players at this point.
PHILLIPS: Has there ever been a pro-sports season lost to a lockout?
MCKAY: It's 2004-2005, the National Hockey League completely lost its season and there was a feeling maybe fans wouldn't come back. Well, not only that league go away, an entire season was lost back then, but many say the NHL came back stronger than before.
There's a lot of NBA team owners that have ties to the NHL thinking perhaps this could work in their favor as well, Kyra. That perhaps if a season goes away, we reassess things and maybe come back stronger. The NHL is thriving. Look how great their ratings bonanza with the Bruins and Canucks game 7 --
PHILLIPS: Everybody duking it out on the ice. Well, if there's no NBA next year. College basketball may benefit from it?
MCKAY: College basketball will certainly. It's already a thriving sport. We see huge numbers when it comes to the college game. They could benefit. Of course, the National Football League would like to think that it could benefit as well.
But, yes, they, Kyra, have to also work out their labor issues in order to get a season on the field this fall. So perhaps college basketball could benefit from the pros what they're fighting about.
PHILLIPS: All right, we'll see. Mark, thanks.
MCKAY: OK.
PHILLIPS: With the second pro league lockout, fan outrage is getting ready to boil over. We're going to talk about that part of the story with sports analyst Larry Smith a little later this hour.
The Casey Anthony murder trial is winding down. Today, the prosecution was expected to call rebuttal witnesses, but the judge recessed the trial indefinitely.
CNN'S David Mattingly is in Orlando. So, David, what's going on and what could happen this weekend?
DAVID MATTINGLY, CNN CORRESPONDENT: Well, Kyra, the defense rested and the prosecution just had a couple of witnesses to call for rebuttal. We expected that to wrap up pretty quick today, but everything is sort of on hold at the moment when the judge declared a recess.
The defense wants to depose one of the witnesses that the prosecution is bringing up. When he did that, he warned the defense and everyone else involved with this case, we've been at this a long time.
You've got a jury essentially on hold with their lives right now. They've been sequestered and they're ready to get back on with their lives. Let's get things going here. Listen to what he said.
(BEGIN VIDEO CLIP)
JUDGE BELVIN PERRY, ORANGE COUNTY CIRCUIT COURT: There are real problems and there are imaginary problems. I hope this is a real problem and not an imaginary problem.
(END VIDEO CLIP)
MATTINGLY: If they are able to wrap things up today with this rebuttal that the prosecution's trying to put on, they will continue.
They will have their closing arguments all in one day tomorrow, and then the jury will begin its deliberations in this long and very detailed and very painful case for the Casey family. We saw all members of the family on the stand yesterday. We did not see, however, Casey Anthony who declined not to testify in her own defense.
PHILLIPS: Of course there's been so much drama and moments in this trial, David. What is this about the man who actually flipped his finger at the prosecutor?
MATTINGLY: Well, that was a spectator. He had one of the highly coveted seats that the public lines up for every day. He's, we're told, a waiter at a local restaurant here. He made that obscene gesture at one of the prosecutors, was caught on camera when he did it.
The judge called him up and said what were you doing? The guy didn't really have an explanation except to say it was just stupid. Now he's going to have a lot of time to think about it. The judge sent him to six days, six days in jail and $623 in fine and court costs. That was one very costly finger.
PHILLIPS: Hope he's been saving his tips. Thanks a lot, David.
All right, the royal newlyweds are spending their first full day in Canada and it's a biggy, why? Because they're taking part in the country's National Day celebrations, that's right, Canada Day.
For more on William and Kate's visit and how they're being received, Zain Verjee in London following this for us. Happy Canada Day!
ZAIN VERJEE, CNN ANCHOR AND CORRESPONDENT: Thanks, happy Canada to you too, Kyra. They are having a great time, you know, everybody loves them. There's a lot of love for the royal couple here.
Actually there's a little bit more love for Kate than William. You know, everyone is chanting Kate, Kate, Kate. He's kind of hanging back a little bit, being a bit low key, but enjoying she's also getting the spotlight.
Let's look at some of the headlines. Here, Kyra, "The Guardian" has this one. "If it's Friday, it must be Ottawa. Royals fly in for 11 days of mounties and movie stars."
It's describing they're welcome in Canada and it's basically all about the attention they're getting. It goes on to say, "It's almost as if the second largest nation on earth by size is saying something that they're more populous neighbor further south cannot match."
Take a look at the headline of the "Ottawa Citizen." It says, "The royals' second home. The official theme of the royal tour is moving forward together in the future," it says. That's important. The story of the royal family in Canada is an ongoing one, inseparable from the country itself.
Many people are saying, Kyra, that this is kind of like the royal wedding all over again, how everyone is totally fixated on them. One thing many people are pointing out too is that they are not just stiffly waving their hands like this.
They are actually very touchy-feely. They are engaging with people in a very warm and a very affectionate way. That's just different from what they used to seeing.
PHILLIPS: That's how Canadians are so it makes perfect sense. So did you see all the gals with copies of Kate's ring, Princess Di's ring on their hands?
VERJEE: Yes.
PHILLIPS: These folks are getting into this visit?
VERJEE: They sure are. I mean, there is an anti-monarchy faction in Canada, but even like the cheers on the street and all the excitement is drowning them out a little bit too.
They're just really warm and genuine. They are the real deal and people love seeing that. So they're going to have a good time. They're going to be traveling all across Canada and they're going to stick in one day I think of a romantic getaway somewhere in an undisclosed location, somewhere in the Rocky Mountains. It's nice up there, Kyra.
PHILLIPS: Yes, it is. The lakes are beautiful out there too. All right, they are also going to be attending a Canadian citizenship ceremony.
VERJEE: That's right.
PHILLIPS: We're going take you right to there, right?
VERJEE: Right.
PHILLIP: Yes, in Ottawa in about 20 minutes for that. Zain is going to be watching that. We'll take it live. Thanks, Zain.
Former President Bill Clinton weighing in on the 2012 presidential election in a one-on-one interview with our Wolf Blitzer.
(BEGIN VIDEO CLIP)
WOLF BLITZER, HOST, "THE SITUATION ROOM": Who's the strongest Republican candidate out there.
(END VIDEO CLIP)
PHILLIPS: Find out his answer just ahead.
There's a new man in charge at the Pentagon. We're going to see what challenges lie ahead as Leon Panetta tackles military and budget issues.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories cross country. In Minnesota, Governor Mark Dayton calls it a day of great sorrow. For the second time in six years, stalled budget talks shut down Minnesota's state government. Few state agencies left operating do so with skeleton crews now.
Today in Georgia, some of the state's toughest new anti-immigration laws go into effect Monday. A federal judge put the kibosh on two of the more controversial parts of the law, namely police checks on immigration status of anyone suspected of being in the country illegally.
Along the San Francisco Bay, more than 5,000 commuters have to find another way to work this morning. There's no Golden Gate Ferry service because of a one day labor strike by ticket takers.
Well, there's a changing of the guard at the Pentagon, former CIA boss Leon Panetta sworn in as defense secretary this morning. He has a daunting task before him.
Let's talk about it more with Pentagon correspondent Barbara Starr. So Barbara, let's lay out the major tasks right now on hand for Panetta.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, good morning, Kyra. As he came up the stairs today, sworn in as the 23rd secretary of defense, facing a host of issues around the world, of course.
But, you know, a lot of what he may be doing here behind the scenes, after the handshakes and the smiles all around will be very reminiscent of his issues at the CIA where he just left.
Secret wars really unfolding now in places like Somalia and Yemen where al Qaeda is on the rise and both the CIA where General David Petraeus will be taking over.
And here at the Pentagon, both agencies really in a very strong partnership to conduct raids, air strikes and all kinds of covert operations in both of those countries. Think of it all as the war on terror 2.0 if you will. That's a lot of what Panetta will be dealing with even as he comes here, Kyra.
PHILLIPS: Yes, I mean, he's going to be faced with getting troops out of two wars and of course, a budget, a number of slashes to the department.
STARR: A lot on his plate. You're absolutely right, of course. He's going to have to come up with a plan to cut $400 billion in defense spending over the next several years.
As you say, get those troops out of both Afghanistan and Iraq and just consider this in Iraq right now, the month of June that has just passed was the most deadly month for U.S. troops in Iraq in the last two years.
So even as that war supposedly winding down, still very deadly and very lethal for U.S. troops, as is Afghanistan, far from over yet, Kyra. PHILLIPS: Yes, Barbara Starr at the Pentagon. Barbara, thanks.
Former President Bill Clinton weighing in on the presidential campaign giving his opinion on the candidates in a one-on-one interview with our Wolf Blitzer. He asked Clinton if he ever talks to President Obama about being re-elected.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER U.S. PRESIDENT: Not a lot, but some - I never -- he's got plenty to do. He's had to deal -- he's got the Afghanistan problem, Libya problem, a whole range of other issues. If they want me to do something, they ask and we talk.
BLITZER: So you're waiting for a phone call.
CLINTON: Absolutely. I don't think I should. He knows I support in general what he's trying to do. I'm out here trying to explain it to people, but he's got a good team. You know, I talk to Jean Sperling from time to time. I talk to other people.
BLITZER: He worked for you?
CLINTON: He did. He's a good man. I talked to Joe Biden last week about some of these economic issues, but I think it's important, you know, not to get the politics confused with action.
Because I believe if people understand the choices, then the only way he will lose is if a Republican who is nominated who has a more credible plan for even more rapid, more broadly based recovery.
BLITZER: Who's the strongest Republican candidate out there?
CLINTON: I can't tell you.
BLITZER: Who do you fear the most?
CLINTON: I'm not surprised if the president will win. I think he will, but you know, as you might imagine a Democrat who I've always thought myself is pro growth, pro business, pro-labor Democrat.
I like Governor Huntsman. I like Governor Romney. I think Governor Romney is doing a better job this time than he did last time. He seems to be willing to take some of the heat you get if you stand up to people in your own party that you think are, in his case, too far to the right.
I don't know who's going to win. I think -- I'm not surprised that Congresswoman Bachmann is off to a good start, because I think she's a compelling public figure. I don't agree with her on a lot of things, but I think she comes across as real. They've got other candidates that are quite good. I don't think we can tell yet. We have to let it play out.
(END VIDEO CLIP)
PHILLIPS: Well, Clinton also talked about his health. He says he feels great even though he's gained a few pounds.
The popular characters from "Sex and the City" may go way back in time. The author of the "Sex and the City" book reveals who she'd like to play her characters in a prequel.
A closer look at the possibly crumbling case against Dominique Strauss-Kahn next the extraordinary twist.
(COMMERCIAL BREAK)
PHILLIPS: OK, now to that extraordinary new twist in the Dominique Strauss-Kahn legal case. Sources say that prosecutors have grave doubts about the hotel maid who accused him of sexual assault. This is just in from our Susan Candiotti who's been working her sources.
Apparently somebody close to the defense case tells her that his attorneys will ask that Dominique Strauss-Kahn be released on his own recognizance and it's hoped prosecutors won't object.
Our next guest has worked in the legal system on both sides of the courtroom, Holly Hughes, criminal defense attorney and former prosecutor. OK, taking in this new news talking about this new twist, I mean, do this guy walk free?
HOLLY HUGHES, CRIMINAL DEFENSE ATTORNEY: Absolutely. Kyra, that's exactly what we're looking at and sooner rather than later because as you just reported as Susan gave you the 411. They are going in. His attorneys are going in and they're saying, you know what?
This isn't going to be a felony anymore, Judge. So this enormous amount of bond that he was forced to post, it's not applicable. This is going to be reduced to a misdemeanor at best.
So you know what, this guy is so high profile, he's not a risk to run on a misdemeanor, that's silly. Let him sign his own bond. Let him get his money released that was on hold.
You know what? We're not going to ask for his passport back, Judge. He's not going to run. He'll stay within the United States. He'll be able to travel freely and eventually what they're looking at is dismissing the charges altogether.
Because when it comes to credibility issue and you got this woman who law enforcement has released statements that says she has lied repeatedly in the past.
PHILLIPS: And she's got some connections to some shady characters in jail. What have we found out about her that basically makes the case stronger for Kahn?
HUGHES: Well, one of the big things, Kyra, is that the day after this alleged assault happened, she was on the telephone talking to an inmate who is currently facing charges of having 400 pounds of marijuana, you know how light marijuana is, can you imagine?
That's more than a dump truckload and $100,000 cash received. This person is looking at charges of drug trafficking and money laundering and one of the big things is they have found out this woman was paying hundreds of dollars in phone charges to five different companies.
Now as an ex-prosecutor, I know if somebody has five phones or five pagers back in the day, that usually is not a good sign. It usually means some type of illegal activity if you're running around with five cell phones.
So, yes, they have problems with her credibility. I think Strauss- Kahn is going to get his bond reduction. I think that eventually we're going to see the charges dropped because of the credibility issues with this alleged victim.
PHILLIPS: And "New York Times" breaking a lot of these details. Our Susan Candiotti has her sources. We're finding out more and more. Bottom line, also apparently, this hotel maid has made accusations of sexual assault in the past. Do we know if that ever went anywhere?
HUGHES: We have not been able to find out the end result of those, but we do know that when she applied for asylum in this country, she had reported that one of the reasons she needed to flee her own country was that she had been a victim of rape.
But we have not been able to find out what happened to those charges, where they went or even if anyone was able to substantiate them, Kyra, which would be the big thing. You know, do we know, did it ever even happen?
PHILLIPS: Holly Hughes, appreciate it. Thanks.
Talks of a "Sex and the City" prequel and the supermodel's love child connection. There's a teaser. Kareen Wynter is here with these headlines in entertainment and more.
Kareen, so they are turning back, I guess, the clock on the popular HBO series?
KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: Actually they are. We're actually getting a little glimpse of Carrie Bradshaw, Kyra and the girls in their younger years and a new book "Sex and the City" author, Candace Bushnell.
She's promoting a prequel to her "Sex and the City" book series. It's called "Summer in the City." Bushnell says the young, beautiful, glamorous Selena Gomez would fit right into this story as a young charlotte if they adopt the book for TV or film.
But don't hold your breath while Bushnell is the woman behind the "Sex and the City" stories, she didn't have any involvement in the film. So, Kyra, this is a less of a casting announcement than ideal speculation.
Gomez, you know, she is all over the place these days, very busy. She's got a new movie out. It's called "Monte Carlo," which is sure to bring those girls into the theatres this weekend. But I could see Gomez doing anything she wants to. She's really such an impressive woman, singing, acting, doing just about everything. We'll have to see if she makes it on to this project, if it happens.
PHILLIPS: All right, the next story, the supermodel and the Hollywood star. What's this all about?
WYNTER: You know, so many people are buzzing about this story, Kyra. The "New York Post" is reporting that Evangelista's son is actually - Linda Evangelista we're talking about. She's actually - he's actually the half brother of Salma Hayek's little girl, small world, I guess.
But "The Post" says French billionaire, Francois-Henri Pinault is the father of Evangelista's 4-year-old son. The 49-year-old Pinault is Hayek's husband and they have a 4-year-old daughter together. The French playboy married Hayek in 2009 and he reportedly got together with Evangelista when he and Hayek were separated, when they had a little time apart.
Evangelista has always denied Pinault as a father is in a family court trying to work out a settlement with her ex. This may be getting a little sticky here, Kyra.
PHILLIPS: All right, Kareen. Thanks.
Coming up live from Ottawa, a peek at Prince William and Duchess Kate to see how they're celebrating Canada Day.
Sarah Palin sits on the sidelines while Michele Bachmann's campaign marches along. Our cnn.com politics, ask has Michele Bachmann replaced Palin in the Tea Party's hearts?
(COMMERCIAL BREAK)
PHILLIPS: Checking top stories. The sexual assault case against former IMF chief Dominique Strauss-Kahn could be in jeopardy. A source familiar with the case tells CNN that prosecutors have found major credibility problems with the hotel maid who accuses Strauss- Kahn of assault.
The judge declares an indefinite recess in the Casey Anthony murder trial. Yesterday, the defense rested its case without Anthony testifying. The prosecution was expected to call rebuttal witnesses today.
The NBA still in limbo. Owners began a lockout until a collective bargaining agreement can be hammered out with the players union.
The NFL lockout goes on as well. The NBA lockout, as we said, it was discussed last night, still there, and Dodger paychecks bounce. What about the fans? Are they being forgotten? Sports in 15 minutes.
Now "Political Buzz," your rapid fire look at the hottest political topics of the day. Three questions, 20 seconds on the clock. Playing today Democratic National Committee member Robert Zimmermann, Sirius XM political talk show host and comedian Pete Dominick and conservative talk show host Dana Loesch.
All right, guys. First question, we're going to go ahead and borrow our first one from our friends at CNN.com, because the headline reads, quote, "Has Michele Bachmann replaced Palin in the Tea Party's heart?"
What do you think? Robert?
ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: Well, Kyra, fortunately, the Tea Party has got a very big heart. So, there's plenty of room for Sarah Palin, Michele Bachmann, Newt Gingrich, Rick Santorum and many others. And for Democrats, that's like Valentine's Day every day -- speaking objectively.
PHILLIPS: Dana?
DANA LOESCH, CONSERVATIVE TALK SHOW HOST: Now, I think there's absolutely enough room for both women. But I still don't think Palin is going to be running for president. I think she's looking to be more of a king maker.
That being said, I think the Tea Party loves anyone who's limited government, who's all about financial responsibility. They're going to love anyone who stands for that.
PHILLIPS: Pete?
PETE DOMINICK, COMEDIAN: Kyra, I disagree with Robert. I don't think they have a big heart. Based on the budgets that they support, I'm not sure they have a heart.
But polls show that both Bachmann and Palin would be drawing from the exact same pool of voters. I think they'd split that. So, I disagree with Dana, too. I don't think that there's enough room for both of them.
But we know Palin is not running. So, we can stop about talking her now, Kyra.
PHILLIPS: OK. All right. He's making a prediction there. Maybe we should make a bet on that.
DOMINICK: Oh, yes.
PHILLIPS: OK.
Treasury Secretary Tim Geithner, as you know, is going to leave later this year. The economy is still in big time trouble. So, who should the president be listening to?
Dana?
LOESCH: History -- maybe the ghost of Ronald Reagan. I mean, I know that the president would like to see the economic recovery that we witness when taxes were cut across the board in the '20s, when they were cut across the board during Kennedy's reign, during Reagan, during 2003, especially if you look at the four pillars of Reaganomics, which I think that this president would benefit from, promoting a strong dollar, less government regulation, less of a tax burden and also less spending, if you have that, you're going to have a good economy. He's not doing any of those things.
PHILLIPS: Robert?
ZIMMERMAN: Let's remember, Dana, Ronald Reagan raised taxes 11 times during his presidency to keep the government functioning. Fortunately through president's chief of staff, Bill Daley's leadership, we have more business leaders on the front lines dealing with currency fluctuation and job retraining and economic growth working with this White House to turn our economy around.
PHILLIS: Pete?
DOMINICK: President Obama completely lost my support as a voter on the economic issues when he literally appointed the people who created the economic disaster, Kyra -- Tim Geithner, Larry Summers. But the fact is -- you know who is going to choose the next treasury secretary? And I think a lot of Americans know who's going to choose the next treasury secretary. And that's Wall Street.
PHILLIPS: All right. You're a buzzer beater. And this is a talker among all of us this morning, this new Harvard study came out, and said, if you attend a 4th of July party before your 18th birthday, that you're more likely to vote Republican. What do you guys think? Can you explain that? Robert?
ZIMMERMAN: Well, if that survey was done at restricted country clubs with 14-year-olds drinking martinis, maybe that sort of checks out. But young people separate patriotism from partisanship.
PHILLIPS: Dana?
LOESCH: A lot of these studies are scientists presenting their biases as fact. You know, I went to almost every 4th of July parade when I was younger, I still ended up voting Democrat in my early 20s, before I became an independent conservative. So, I think it's bunk.
PHILLIPS: Pete?
DOMINICK: Lt's see, Kyra, people exposed at an early age to lawn jarts and cheap beer and fatty meats and irresponsible grown men who are playing with explosives -- irresponsible grown men playing with explosives -- it's such a mystery the way that they vote Republican.
PHILLIPS: Pete, you know 4th of July, it's not about the cheap beer, it's about the good beer. Come on now!
DOMINICK: I would love to come to your party, Kyra, thanks for the invite.
PHILLIPS: You are invited.
DOMINICK: This study is if they attend parades, not parties. But I went with the party joke anyway. It's actually said anybody who attended a parade. I had to read up on it.
PHILLIPS: Yes, leave it to Pete to correct the Harvard study. Thanks, guys. Happy Fourth of July!
DOMINICK: I went to Yale. I went to Yale.
PHILLIPS: I was waiting for him to plug that.
All right. Today is Canada's birthday. They're throwing one of their biggest celebrations ever. They've got VIP guests after all, I mean, Prince William and Kate. Heck, they are on hand in Ottawa to help celebrate their full day of their Canadian trip.
Our Max Foster, he's also there, too. He's helping celebrate. And talk about big crowds and a lot of fans.
MAX FOSTER, CNN CORRESPONDENT: Big, big crowds gathering here. And the sunshine has come out. There's spooky thing going on here. Whenever Catherine and William go outside, it's sunny, when they go inside, it starts raining. Something very odd going there.
So, very successful trip so far. We just had all the pomp and pageantry that's expected from an occasion like this. A little later, Catherine and William will turn up here in an open top carriage and have a look at a big show on stage. We'll be bringing you that later on.
Their first stop, though, was due to have started but it's been delayed for some reason. They're going to the Canadian Museum of Civilization where they're going to see about 25 people become Canadian and swear allegiance to the sovereign which one day will be William.
It will be interesting to see how he handles that situation. It's a reality that one day he will be king. They are working their way, I think, Kyra, through how they're going to reign at the moment. And it seems quite touchy-feely. I'm not sure if you feel the same, with (INAUDIBLE) maybe.
PHILLIPS: Well, we're going to take that live, Max, as soon as it happens, once that ceremony begins. Max Foster there in Canada -- thanks.
Well, coming up, it's quickly becoming the biggest 4th of July holiday tradition, and the grossest. This weekend, Nathan's annual hotdog eating contest. And let me tell you something, national pride is on the line, folks. We'll explain.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories cross-country.
After 16 years on the run, Boston mobster James "Whitey" Bulger back home. The 82-year-old accused murderer got a public defender, but lost his petition to have two pending racketeering cases combined.
Besides one count of robbery, Michael Perry also faces an additional charge of contributing to the delinquency of a minor.
In Orville, California, Butte College has new claim to fame. With its array of 25,000 solar panels, the school is the first college in the U.S. history to generate all of its electricity from renewable energy.
Well, listen up, folks, America's pride may be on the line. You know, we like our trophies, like the World Series. U.S. wins that almost every year.
Now, there's a chance we could lose face this weekend. And, of course, I'm talking about Nathan's annual hot dog eating contest.
Senior correspondent Allan Chernoff who attends the famous ceremony every year, of course, has plenty of dogs. He's going to talk to us what the buzz -- the big buzz is this time around.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Kyra, all the excitement is building this very morning. In less than an hour, the weigh-in will begin in city hall here in New York. We're going to have Sonia Thomas, the top eater for women staring down against Joey Chestnut, the world champion, the holder of the world record, 68 hot dogs and buns in only 10 minutes.
Now, you mentioned that world domination issue. We're having the Chinese come in. There are three Chinese competitors. They've just arrived in New York. They'll be at the weigh-in.
So, a little bit of anxiety here as to whether or not the Chinese may challenge the world champion Joey Chestnut. Chestnut is hoping to be able to break his world record of 68. He says if it's a good day, if the dogs are cooked correctly, he might be able to eat 70 or even more. Let's see.
Now, what about his old rival? Hikaru (ph) Kobayashi of Japan. Last year, he was banned from the competition. There was a contractual despite. He's now going to be eating on his own at a bar in Manhattan challenging them from afar, from across the river -- Kyra.
PHILLIPS: There we go. We had the little video mix up there. Now we see him being dragged away in the cuffs. That was serious stuff. He charged the stage, created a lot of drama.
I mean, this is -- this is serious business, Allan, right?
CHERNOFF: Indeed, it is. It's actually marketing genius. We'll have the story for you on Sunday and Monday morning talking about what this has done for Nathan's famous, the sponsor.
Kyra, believe it or not, their hot dog sales have nearly doubled over the past seven years and it's mainly because of this incredible contest that not only takes place here in Coney Island but it actually occurs. There's a qualifying round across the country, so the excitement builds up in local markets all over. The big one though, July 4th, Coney Island, we'll be there. Watch it.
PHILLIPS: I got to admit, the first time I went, I went straight to Nathan's and had the dog. Thanks, Allan.
CHERNOFF: But not too many.
PHILLIPS: That's right. Yes, not 70 in less than 10 minutes. That's for sure.
All right. Tough time in pro sports. Well, try telling that to the fans. Two leagues in lockout and a baseball owner, he can't pay his bills. We're going to talk the state of sports, next.
(COMMERCIAL BREAK)
PHILLIPS: Well, if you're an NBA fan, try going online to check your team's player profile. You click on any player, any player, and you just can't find them. The league is locking out the players and redirecting your searches to another page.
But we're not just calling out the owners here. You know, when money's involved, there's always two sides to the argument and who's caught between, is the players and the owners -- of course, the fans.
And that's what sports analyst Larry Smith is joining us to talk about.
So, we haven't heard a lot from the fans. You can only imagine what they're going to -- I mean, Steven A. Smith said, well, they're going to have to get over it. I'm thinking OK. All right.
What about you? What do you think?
LARRY SMITH, SPORTS ANALYST: They will. They'll get over it. I mean, this is not the first time we had a lockout or work stoppage. I think the biggest fear for the NBA and NFL is when you miss games.
For the NBA, this is day one. There's a wide chasm between the two sides between the issues. It's been proven before. They lost games back in '88 or '98-'99. They still bounce back and they will again.
PHILLIPS: So, do you expect fan retaliation when the games return? Can they boycott and go, forget this you left haw and dry without our action?
SMITH: Well, I think for the NBA, it's unique, because you have so many other ways you can spend your sports entertainment dollar. You have college basketball, the NHL, a lot of things going on.
The NFL right now is a little bit different because Sundays are NFL, it's a different brand.
But the NBA needs to be really concerned in terms of fan retaliation and empty seats if they start missing games come November.
PHILLIPS: So, do you think any games will be missed? NBA and NFL?
SMITH: NFL, it looks like they're going to get it done in time. The NBA, they got four months to get it done. I talked to one league employee last week, who said, brace yourself, this is going to be like '98. We will not have basketball come November 1st. But, again, they are four months away.
There's a big divide right now in terms of the basketball-related income, what the players get, what the owners now want to pay them. You know, guys, split the difference, make it 50/50.
PHILLIPS: You know, I start thinking old school here, the beginning days of basketball, I think back to the Green Bay Packers, when they first started, it was all about the game. It wasn't about the money. And, boy -- I mean, the money, the greed, everything, has really gotten involved in this process.
A lot of people are saying what happened to the love of the sport? Why can't we go back to that time? We kind of created a monster?
SMITH: We have. Madison Avenue, TV, imagine the gladiators of Rome with cable, you know? CNN you're reporting on --
PHILLIPS: That would be NASCAR. That would be NFL.
SMITH: Absolutely. It's not at 8:00. It's the blood sport at the coliseum. So ,it's Madison Avenue, it's a multi billion dollar enterprise. The owners of both leagues are doing what other corporations have done in this kind of economy. It's their chance to go through and try to cut some costs and see where they can make more money.
PHILLIPS: The Dodgers are in trouble too. They may be going back to Brooklyn. Who knows?
Thanks, Larry.
SMITH: That's even scarier.
PHILLIPS: All right. We'll keep talking. Thanks, Larry.
SMITH: Sure.
PHILLIPS: Well, stories making news later today.
At 11:30 Eastern, former IMF chief Dominique Strauss-Kahn back in a New York courtroom.
One-thirty Eastern, the man arrested Wednesday by the FBI for allegedly flying on a fraudulent boarding pass is set to appear on a U.S. district court.
And around 4:00 Eastern, President Obama heading to Camp David for the 4th of July weekend.
All right. T minus seven days and counting to the end of an era. NASA gets ready to pull the plug on the space shuttle program. Was it a success or failure? We'll take a hard look after the break.
(COMMERCIAL BREAK) PHILLIPS: And just moments ago, we got a glimpse of Strauss-Kahn, former IMF -- there he is, you can see the former IMF chief and his wife by his side heading into the courtroom. His court hearing expected to take place within the next hour.
As you know, the sexual assault case against the former IMF chief, Dominique Strauss-Kahn, could be in jeopardy now. We reported today, sources familiar with the case were telling us that prosecutors have found major credibility problems with the hotel maid who is accusing him of sexual assault.
We're following the story. We're following the hearing that should be taking place within the next hour as you saw Strauss-Kahn arriving to the courthouse just moments ago.
OK. We're seven days away from the last scheduled launch of a NASA space shuttle Atlantis set to lift off next Friday, just before noon Eastern. After 135 missions, questions around -- questions abound, rather, as to why the U.S. is pulling the plug and if the program is deemed a success or failure.
Our John Zarrella takes a look at this.
(BEGIN VIDEOTAPE)
JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): From the beginning, it was a marvelous machine, releasing from its cargo bay, deep space probes like Ulysses that went to Jupiter. Astronauts ventured out un- tethered.
UNIDENTIFIED MALE: The trip to solar access (ph) estimated to take 10 minutes.
ZARRELLA: To capture and retrieve failed satellites dead in space, dangerous feats unheard of before shuttle.
UNIDENTIFIED MALE: I think we got a satellite.
ZARRELLA: The great observatory Hubble dazzles with breathtaking images of the universe and its ability to see galaxies born nearly at the dawn of time.
UNIDENTIFIED MALE: Hubble has arrived on board Atlantis with the arm.
ZARRELLA: Hubble was launched, repaired and serviced from shuttle.
Every major building block of the football field long space station was carried up and assembled from shuttle.
Before becoming NASA's head man, Charlie Bolden was an astronaut. He flew four shuttle flights including the Hubble launch.
CHARLIE BOLDEN, NASA ADMINISTRATION: I defy anybody, I will argue with my Apollo comrades, the accomplishments, the achievements, the record of performance, the spinoffs, the capabilities that have been developed, what we did in shuttle over 30 years dwarf what was done in the Apollo era.
GENE CERNAN, APOLLO ASTRONAUT: We can build spacecraft. We can build hardware. We can build boosters. But there's no goal, there's no mission.
We are wandering in a desert in space today, period.
ZARRELLA: So, why now? Why call it quits now?
From the time of its inception 40 years ago, until the shuttles are retired, the program will have cost the American taxpayers just shy of $115 billion. That's less than $4 billion a year -- a drop, if that, in the federal budget. Still, the problem is money.
NORM AUGUSTINE, PRESIDENTIAL COMMISSION CHAIRMAN: There's just not enough money in NASA to continue the existing programs and start a new program at the same time.
ZARRELLA (on camera): Was it time?
BOLDEN: Yes, it was time. It has been time for some time to phase out of shuttle and go back to exploration.
ZARRELLA (voice-over): Whether you hated it or hailed it, whether you felt it a waste or worth it, the shuttle was an iconic flying machine that symbolized America's inspiration and ingenuity.
UNIDENTIFIED MALE: Roger all.
(END VIDEOTAPE)
PHILLIPS: And in advance of next week's final shuttle launch, CNN presents "Beyond Atlantis: The Next Frontier." It debuts Sunday, 8:00 p.m. Eastern. And encore presentation airs Friday, July 8, 10 p.m. Eastern.
And remember, CNN is your place to watch the final shuttle launch. It's set for a week from today. Our coverage begins 10:00 a.m. Eastern Time.
First, pro football, now pro basketball. The NBA has locked out its players. And coming up, Suzanne Malveaux will talk to an NBA all-time great, Kareem Abdul Jabar about the lockout.
Plus, we all know someone who buys clothes, shoes or other items and then hides the purchase from family and friends. Next hour, we're dealing with financial infidelity.
And a Michigan congressman about to join the White House race. We're going to tell you all about this gentleman, coming up next.
(COMMERCIAL BREAK)
PHILLIPS: New candidate to tell you about who is joining the White House race.
Jim Acosta who is here -- and someone who is not necessarily a household name, Jim.
JIM ACOSTA, CNN CORRESPONDENT: No, that's true. But you could say that Thad McCotter is tuning up for a presidential run, Kyra. Good morning to you. That's right.
The Michigan congressman, he's been in office for five terms now. He has decided he is going to run for president. A spokesman for his office confirmed that to CNN earlier this morning.
He is expected to make this announcement tomorrow afternoon at a festival, a 4th of July festival in his home district up in Michigan. And according to the press release for that festival, Kyra, he is expected to also show off his musical talents.
That's right. Thad also plays the guitar. He is a big Led Zeppelin and classic rock fan. When he was asked about the near government shutdown that happened earlier this spring, he blamed it on a communication breakdown, quoting Led Zeppelin there, between the two parties.
So, this should be an interesting race. But McCotter is going to be a serious candidate. He is going to be competing in Iowa. He's already purchased a prime location for that big Ames straw poll that's coming up next month.
So, we'll be watching Thad McCotter closely.
Also wanted to point out, there are some fundraising totals that have come in on the GOP side and Mitt Romney -- looks like he is the big front runner when it comes to the money race for the White House. He's expected to announce somewhere in the neighborhood of $15 million to $20 million in the first quarter in fundraising. That's not as much as he did raise back in the 2008 period in the same time period, but still, not too shabby for Mitt Romney -- Kyra.
PHILLIPS: All right. Jim, thanks. We're going to have your next political update just about an hour. And, of course, a reminder for all the latest political news, go to our Website, CNNPolitics.com.
All right. Let's celebrate the Fourth a couple days together, shall we?
