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Search for Missing Boat Passengers; Jurors Weigh Anthony's Fate; French Writer Accuses DSK of Attempted Rape; Teachers Union Endorses President Obama; Mexican Drug Violence Explodes; Missing Teen's Phone Hacked; Parents: Curb Your Bratty Kids; Final Shuttle Flight Friday; Royals in Canada

Aired July 05, 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: Good morning, you guys. It's 9:00 a.m. on the East Coast, 6:00 a.m. out West. I'm Kyra Phillips. And here are some of the stories that have us talking this morning.

A tough wait for Casey Anthony and everyone invested in her murder trial. She's accused of killing her 2-year-old daughter Caylee. The jury beginning its second day of deliberations.

Former IMF chief Dominique Strauss-Kahn facing a new sexual assault complaint. A French writer says he tried to rape her eight years ago. Her lawyer following the charge with prosecutors.

And the Senate back in session today after the holiday weekend. Top of the agenda? The debt ceiling deadlock. The Treasury due to run out of money in less than a month.

We begin this morning, it's been more than 30 hours in shark-infested water. Coast Guard crews and the Mexican Navy still searching off the Baja Peninsula for several people still missing in a boating accident.

The charter fishing boat ran into bad weather and capsized and sank early Sunday. More than 40 people were on board, more than half of them Americans. Most have been rescued, but they had to wait hours for help.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: He was in the water about 12 hours and I think he said he swam or at least he told me to my last call to him he swam maybe about eight miles.

UNIDENTIFIED FEMALE: They had life jackets on and they actually did have time to put on life jackets so that's a good thing.

(END OF VIDEO CLIP)

PHILLIPS: Now there are some conflicting reports as to just how many people are still missing. We're hearing at least five, possibly as many as eight.

Joining us now with more on the rescue effort, Coast Guard Lieutenant Bill Burwell. And Lieutenant, I know you're going on very little sleep in the past 36 hours. I want to talk about the rescue efforts but first of all, can you confirm the number of missing people that you are searching for right now? Is it five, six, seven, eight?

LT. BILL BURWELL, U.S. COAST GUARD: Kyra, the truth is, we don't know a specific number. We were told between six and nine people and we're out there searching for any survivors.

So the number really is inconsequential to us. We are just looking for those that are surviving and we are continue to do so throughout the night and this morning.

PHILLIPS: And let's talk about those efforts, Lieutenant. You're the one that has been out there involved in this mission working with the Mexican authorities. What exactly are you doing right now and what are the biggest challenges that you face?

BURWELL: Kyra, we have C-130 on the scene that's conducting a search. They're able to use a multitude of sensors to look through the Sea of Cortez near the debris field and then we're also plotting the drift throughout the night, through this morning, to see if we can find anything.

We've had two crews flown out for our rescue helicopters and there is multiple Mexicans both airborne and surface assets looking on scene for any survivors.

PHILLIPS: Any signs of life, Lieutenant, in the past, say, 12 hours?

BURWELL: We have not recovered any survivors in the last 12 hours. We are continuing to search. Search conditions are good. Storm blew through but it's -- there's good visibility. And the water is warm, about 85 degrees, and if someone is out there, there's a good chance that they're still surviving. We'll keep looking for them.

PHILLIPS: And we know that that's exactly what you will do and you won't give up until you do know.

Lieutenant Bill Burwell, I know it's been a long couple of days for you. Sure appreciate you calling in. We'll continue to follow the story, of course.

BURWELL: Thanks, Kyra.

PHILLIPS: You bet.

Well, Jacqui Jeras has been watching the weather in the search and rescue operation right there off the Sea of Cortez.

Jacqui, let's talk about the kind of conditions that they're dealing with right now. You heard the lieutenant.

JACQUI JERAS, AMS METEOROLOGIST: Right.

PHILLIPS: Warm weather, that's great. JERAS: Right.

PHILLIPS: If indeed there's someone or a group of individuals surviving this right now. But what about everything else?

JERAS: Yes. Well, 85 degrees, certainly you can survive in that, so you're more talking about whether or not you have a flotation device on and maybe getting some waters as temperatures are extremely warm in this area.

You could see clusters of showers and thunder showers south of there. This is the Sea of Cortez, also known as the Gulf of California. We'll zoom in and show you the area that we've been talking about. And here's the Island of San Luis.

And this is very near where the boat was capsized and this is a very remote area, and so that is part of the reason why they had such a long period of time before they were able to find anybody. Only about four miles between the island and the peninsula here, so people were able to swim to shore before they got some of that help.

Now clear conditions expected today. Very little chop in the sea so that's the great news as well. However, we do expect some moisture to pull into this area this afternoon and kick up some showers and thunderstorms. So any showers and thunderstorms that do develop, of course, they produce lightning, that will be a concern, and also will cause some erratic winds which will help bring those seas up just a little bit.

So that's the biggest concern that they're going to be dealing with in the next couple of days -- Kyra.

PHILLIPS: All right, Jacqui, thanks.

Well, it's day two of deliberations in the Casey Anthony trial. Jurors weighing seven charges against her including first-degree murder.

CNN's David Mattingly is following the developments out of Orlando.

So, David, what's the scene and the atmosphere there right now? A lot of anticipation, no doubt, building.

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: No doubt. Also, we were watching very closely this morning Casey Anthony in court. She seemed somewhat agitated today, involved in a very animated conversation with one of her defense attorneys.

We have no idea what that was about. But we do know that the jury is back at work today after getting a half day in yesterday. They heard some very powerful words from the prosecution, calling Casey Anthony a pathological liar, and posing the question, who else but Casey would have benefited from the murder of her daughter Caylee? They say Casey Anthony yearned for a simpler, carefree party life and that her daughter was getting in the way. And while they worked today behind closed doors and under guard, the police are also in the neighborhood where Casey Anthony's parents live. A makeshift memorial has hopped up in the woods near their home where little Caylee's body was discovered and people are coming by there leaving stuffed animals and cards and balloons and sentiments.

People trying to remember the little girl whose death started this intensely watched investigation and murder trial. But for here, right now, at the courthouse itself a great deal of anticipation and everyone just watching, wondering what is important to this jury, what are they talking about, when will they come to a decision, and what will happen now to Casey Anthony -- Kyra.

PHILLIPS: All right, David Mattingly there in Orlando, we'll continue to wait as the jury has begun its second day of deliberations. We're going to get more insight into the trial and the jury deliberations from our criminal defense attorney Holly Hughes, she's joining us here again in the studio in just about 20 minutes.

Now while one attempted rape case against former IMF chief Dominique Strauss-Kahn maybe be falling apart, it looks like he could be facing another one.

Monita Rajpal joining us now from London.

Monita, we got word of this French journalist coming forward saying Strauss-Kahn attempted to rape her eight years ago. We're learning more about her and exactly what type of evidence she might have.

I guess let's begin with, is there a statute of limitations on this in France?

MONITA RAJPAL, CNN INTERNATIONAL ANCHOR/CORRESPONDENT: Yes, that's really interesting, Kyra, in this case. We understand that this case took place eight years ago. And of course, many people are asking questions as to why it has taken this journalist this long to file this criminal complaint against Mr. Dominique Strauss-Kahn.

They have been saying that it took this long because the alleged victim's mother had advised her not to file a complaint because Mr. Strauss-Kahn is a high profile person and that this could be something that would be a stain against her career.

But we understand in France, there is a statute of limitations against cases of this -- of this nature. If there is an attempted rape or rape, there is a statute of limitation of 10 years. And for sexual assault, there is five years. Now that, of course, poses -- I guess, a hurdle for the alleged victim in order to prove that this was indeed attempted rape, in order to fit within that 10-year time frame. If it was sexual assault, she would have passed that five-year mark -- Kyra.

PHILLIPS: Do we know anything more about this French journalist? Apparently this interview took place. Do we know where? A hotel room eight years ago?

RAJPAL: It took place -- it took place at Strauss-Kahn's National Assembly office.

PHILLIPS: OK.

RAJPAL: And we -- again, in 2003. Again, we're getting discrepancy here whether 2002 or 2003. Apparently she had done an interview with him. And then he had called her to say that -- sent her a text message as I've said that he wasn't happy with a few of the things that were said within that interview so he called her back to the office allegedly.

And that's where this alleged incident took place that, apparently, she was, according to reports, roughed up and she was then, obviously, very shaken up by this whole incident. And that was when she contacted her mother reportedly indicating what had allegedly happened.

PHILLIPS: OK. We'll keep following it. Monita, thanks so much.

We're 16 months out from the presidential election and we don't even know who the Republican candidate will be but already we have one big group that is throwing its support behind President Obama.

Jim Acosta is on that for us out of Washington this morning.

Hey, Jim.

JIM ACOSTA, CNN CORRESPONDENT: Good morning, Kyra. You know this is not a big surprise. We spent a lot of time talking about the Republican side of the race for 2012.

On the Democratic side the president did pick up a pretty important endorsement yesterday from the National Education Association. This is the teachers union as everybody knows. And the vice president gave a pretty important speech yesterday to this union and so today the teachers union is throwing its support behind the president.

Not unexpected, as I mentioned. And we've got a quote from the president of the NEA, Dennis Van Roekel. He says he has never wavered talking about the president from talking about the importance and his dedication to a vibrant middle class.

What is somewhat surprising about all of this is that the NEA would come out with this endorsement this soon. The president has sort of occasionally and his administration has occasionally shown some tough love towards the teachers around the country and the NEA has come out strongly behind the president saying they're concerned about what's happening in state houses, going into Republican hands. So a pretty big move there by the NEA to get behind the president.

Also want to talk about the Republican side of the race for 2012. Got some great video to show you, Kyra, out on the campaign trail. Fourth of July obviously is a very important holiday for politicians because there are parades and picnics to talk to voters out there.

Well, Mitt Romney and Jon Huntsman were at the same parade in Amherst, New Hampshire, yesterday. There they are both in the split screen there, shaking hands with as many people as they can find.

That didn't just happen in New Hampshire yesterday. In Clear Lake, Iowa, Michele Bachmann and Newt Gingrich were also working the crowds at the same parade. So not enough parades. Too many candidates on the Fourth of July yesterday -- Kyra.

PHILLIPS: You would think there'd be a little -- a few more options out there, Jim, on the holiday, or maybe this was planned.

ACOSTA: You know, this just goes to show you when you just have Iowa and New Hampshire and South Carolina to worry about for months and months and months, there just aren't that many parades for these candidates to hit. So it makes it difficult.

Makes it easy for us, though. We can just go to one event and get two candidates. That's not a bad deal.

PHILLIPS: There you go. And you've got yourself a story, Jim. Thanks.

ACOSTA: Exactly.

PHILLIPS: We're going to have your next political update in just about an hour. And a reminder for all the latest political news, you can always go to our Web site 24/7 at CNNPolitics.com.

Well, Mexico nabs a brutal drug lord in the war on drugs. Drug violence in Mexico is exploding. The number of deaths is shocking.

Coming up we're going to talk to the author of the "TIME" magazine cover story "The War Next Door."

And this story out of Britain. A British newspaper says that one of Rupert Murdoch's tabloids hacked the phone of a girl later found dead. That story coming up in 10 minutes.

(COMMERCIAL BREAK)

PHILLIPS: All right. Stories making news "Cross Country."

In California a bus carrying firefighters to battle a blaze in the Endless National Forest just outside L.A. crashed last night in Palmdale. Police say that at least nine people were injured, some were trapped inside that bus.

In Iowa, a teen run over by a train actually lived to tell about it. The 17-year-old tells police he had been drinking heavily and blacked out between the tracks. Well, when he woke up, the train was passing over him with just a few cuts and bruises. Railroad wants to press charges.

In Michigan, a prison inmate is suing the state because he's not allowed to have his porn. Kyle Richards says that a lack of raunchy reading material has left him with a poor standard of living and sensory deprivation. The local sheriff isn't too sympathetic. Police in Mexico saying they have bagged a brutal kingpin in the war on drugs. Sunday, they arrested Jesus Enrique Rejon Aguilar, founder of the ruthless Zetas drug gang. They say that he's connected to the attacks against U.S. ICE agents in February that killed agent Jamie Zapata.

Now, I mentioned this war on drugs. Do you realize it has been 40 years since President Richard Nixon began that war? It's got to lead you asking, what have we been doing the last four decades?

"TIME" magazine is devoting its cover story to "The War Next Door." Tim Padgett wrote it. He's been covering Mexican drug wars more than 20 years now. He joins me live from Miami.

I guess, first of all, let me ask you about the latest news, Tim. Do you think the capture of the Zetas founder is going to make any type of impact at all?

TIM PADGETT, LATIN AMERICA BUREAU CHIEF, TIME: I think it's a significant victory for the Mexican government. Rejon is one of the founders of the Zetas.

If we talk about the cancer of drug violence in Mexico, Zetas are really the most malignant cells you could say. They are the most soulless killing machine amongst all the cartels in Mexico. They are former army commandos recruited about a decade ago by the Gulf cartel up in northeastern Mexico.

And they are really the worst nightmare that Mexico's lawlessness could produce. They have no compunctions about killing not just rivals but innocent civilians in this war. And also, as you mentioned, even U.S. agents like ICE agent Jaime Zapata back in February.

PHILLIPS: You know, and you point out in your article -- in the last five years, 40,000 people have died on this war on drugs, you know, a war that was implemented as I mentioned 40 years ago. I mean, why has this war been such a failure, so ineffective?

PADGETT: Well, large part is just that -- on the Mexican side anyway is just the utter lack of credible police and judicial institutions.

One of the things we wanted to do with this article was put more of a human face on the Mexican drug war tragedy and that's important because as these drug cartels become more and more monstrously violent, as I mentioned, they're killing increasingly innocent people. But what that's doing is creating the emergence of victims groups like the one led by the Mexican poet, Javier Sicilia, that we talked about in the story, whose son was killed by narcos.

And those victims groups are beginning slowly but surely to put pressure on Mexican politicians to get more serious about the kind of police and judicial reforms that are really Mexico's only long-term solution to saving itself from this tragedy.

PHILLIPS: Tim, final point. I mean, and for years and you've covered this, too, the corruption within the police, the military, the politicians. I mean, that is also a fighting force in itself.

PADGETT: Oh, I mean, the big problem -- look. The United States is to blame to a large extent for this tragedy because of our drug consumption and also because of the weapons that gets smuggled from the United States into Mexico. But the largest part of the problem is the police corruption. Most of the police -- and I hate to say this -- but most of the police in Mexico are, in some way, in the pockets of the drug cartels. And until that's changed in Mexico, nothing is really going to change.

PHILLIPS: Well, your work hasn't changed. And for more than 20 years, you've been tackling this from every single angle possible. Tim, thanks so much for joining me today. It's a pleasure.

PADGETT: Thank you.

PHILLIPS: And a missing British teen's phone was hacked, making it pretty difficult for people to solve the case. Now, they're questioning tabloid news executives. We'll have details from London in just four minutes.

And duty-free shops, most people think they are a good deal because you're not paying taxes. But they might be overcharging you in other ways. Alison Kosik explains that.

(COMMERCIAL BREAK)

PHILLIPS: All right. How about showbiz headlines for you?

The boy wizard reveals a dark side. We all watched Daniel Radcliffe grow up playing "Harry Potter" in all those movies. Well, now, he admits in a "GQ" interview that he became secretly reliant on alcohol to fuel those long hours on the set.

Radcliffe now 21 says he got sober last year and he's enjoying life a lot more.

Black Eyed Peas expected to release a new video game later this year that will let you sing along and bust all their moves. The game will break new ground and will give you real-time feedback on how well you're doing.

Actor Will Smith reportedly putting together a team to do a re-make of the movie "Annie." It will star his daughter Willow. Smith is reportedly talking to "Men in Black 3" co-star Emma Smith about writing the screenplay.

A missing British teenager's phone messages allegedly hacked by journalists and police say it messed up their investigation.

CNN's Monita Rajpal joining us from London once again.

So, give us the background on this, Monita?

MONITA RAJPAL, CNN INTERNATIONAL ANCHOR: Well, what we understand right now is that, Milly Dowler was the teenage girl here in Britain who went missing in 2002. She was later found dead. What we -- our understanding now of what is emerging of the last day and today is that the phone of a journalist allegedly at newspaper "News of the World" allegedly hacked into her mobile phone and then deleted messages from her voice mail.

According to these accusations and allegations, there were many messages were left on her voice mail from friends and relatives appealing her to contact them. They were, obviously, very distressed that she had been missing. And then those messages, especially the ones left within the first couple of days that she was missing, were deleted, allegedly by the journalist of "News of the World."

Now, "News of the World" is owned by a News International, which is part of Rupert Murdoch's empire. The executives of News International are meeting with British police today to -- they are saying that they want to cooperate with any sort of investigation. Of course, this has police and, of course, the family of Milly Dowler extremely angry. Many describing the situation as heinous as this, obviously, could affect the investigation as it was taking place -- Kyra.

PHILLIPS: All right. We'll follow the investigation. Monita, thanks.

Duty-free is just another way of saying tax-free and it sounds like that would save you money. But does it really?

Alison Kosik has some revelations from New York Stock Exchange -- Alison.

ALISON KOSIK, CNN CORRESPONDENT: You know what, Kyra? It all depends on what you're buying. And the reality is you really can't be sure you're getting a good deal unless you know what the item costs in a regular retail store so you know what the advice is? Do a little homework before you go into these duty free shops.

Also, what your currency is worth, that has a lot to do with whether it's worth it to buy in these duty-free shops as well. So, let's say the dollar is weak against the euro, then buying from a European duty- free shop is not going to be such a great deal after all.

Now, even in "USA Today," one traveler says, you know what, he gets great deals at duty-free stores in Kenya but it really depends on where you are.

Overall, though, no doubt about it, this is big business, this duty- free shopping. Shoppers spent $39 billion at duty-free shops just last year -- Kyra.

PHILLIPS: So, what items are worth it then to actually buy at these shops?

KOSIK: OK. All right. So, this is the meaty part here. Three examples of the top items that people go for in these duty-free shops. First of all, perfume and cosmetics. I say buy it duty-free, especially if it's a multipack with more savings. If you're looking for cigarettes, buy those duty-free as well, because the fact is, we do pay a lot in taxes here in the U.S.

Electronics, though, buy those at a regular retail store because they are going to be cheaper at the regular retail store and you may need to return it if something happens.

All right. What's in store for stocks today? We're expecting a flat open. Light trading is expected as we come off the strongest week we've had in two years. We are getting a factory orders report out in about a half hour. We'll see if that moves the markets at all.

Kyra, back to you.

PHILLIPS: All right. Thanks, Alison.

A portion of one of the nation's most pristine rivers polluted by an oil spill. The governor gets a look at that today. The latest on the cleanup in four minutes.

And the duke and duchess hit Prince Edward Island. They go head-to- head , competing against each other in a dragon boat race! And the winner is?

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories:

We're waiting right now for a verdict in the Casey Anthony trial. Jurors in their second day of deliberations are trying to decide whether she's guilty of killing her 2-year-old daughter.

A sexual assault complaint filed today against Dominique Strauss-Kahn. French writer Tristane Banon claims that the former IMF head tried to rape her eight years ago.

And the search goes on for as many as nine people after a tourist boat capsized off Mexico's Baja, California peninsula. One American so far is confirmed dead.

One oil spill is fouling one of the nation's most pristine rivers. An estimated 40,000 gallons spilled from a broken underground pipeline into Yellowstone River near Billings.

(WEATHER REPORT)

PHILLIPS: For a second day, the jury is out in Orlando. They're weighing first-degree murder and six other charges against defendant Casey Anthony. She's at the courthouse, as we speak, awaiting her fate. And according to CNN's David Mattingly she seem agitated this morning and had some pretty intense chats with her lawyers.

Holly Hughes, a criminal defense attorney and former prosecutor. She knows both sides -- or how both sides, rather, are feeling right now.

First of all, do you know anything about these conversations she was having with her attorney? Do we have any inside scoop on what she was so rattled about? HOLLY HUGHES, CRIMINAL DEFENSE ATTORNEY: No. There wouldn't be, because, of course, those are privileged communications.

But you've got to believe that now that it's come down to D-day, and that is decision day, deliberation day, done day. There's no more evidence, Kyra, so you got to believe she didn't sleep last night. So she probably was up all night thinking about you should have said this, you should have said that, you should have let me testify.

So I think what we're seeing is the reality hitting her. She's overtired like every single person involved with this case. And she's probably rerunning it through her head. You know how we do as humans. You know, we do something --

PHILLIPS: We second-guess everything.

HUGHES: Yes. Monday morning quarterback. We've come up with a phrase to describe that indecision we have about ourselves. We go and do something and then we step back and go, maybe I should have done it differently. And I think that's probably what's happening here. She sees her future on the line it's becoming very real and she's probably panicking saying why didn't you do.

PHILLIPS: What's your gut? I mean, you know from your experience. Could we find out today her fate? Could it happen today or do you think it's going to take a little more time?

HUGHES: You know, I think it might, Kyra. I think by the end of today or early tomorrow before lunch time, I think we very may well have a verdict.

This is an older panel of people. We don't have any, you know, 20- somethings on here. The youngest is 32, goes up into the 60s, possibly 70s. We're guessing about those ranges. So you've got a mature panel of people. They've been diligently taking notes the whole time. They're ready to get to work and get it done.

So I think we're going to see a verdict sooner, rather than later.

PHILLIPS: All right. Stay with us, please.

HUGHES: I will.

PHILLIPS: Holly, thanks.

Well, it's the end of an era on Friday, when we'll witness the very last flight for the space shuttle. And it looks like the private industry picking up pace when it comes to NASA's work. That is coming up.

And LZ Granderson is talking directly to parents this week. He says the world should not act as surrogate parents for your bratty kids. He'll explain coming up next.

(COMMERCIAL BREAK) PHILLIPS: OK. There's kid-free resorts, there's kid cruises and when LZ Granderson heard major airlines might ban kids from first class and offer kids free flight, well, he cheered out loud. On the CNN.com opinion page, LZ says the rest of the world should not have to be subjected to your, as he writes, bratty kids.

OK, LZ, define bratty for me, first.

LZ GRANDERSON, CNN.COM OPINION WRITER: Bratty kids, I think would be any child in which the parent hasn't gotten in early on the discipline and so their behavior can't be modified, can't be regulated, it's really up to what the child feels like doing.

PHILLIPS: OK. So you're saying the kid in no way, shape, or form could be brought up with a lot of discipline and then all of a sudden at the age of say, two or three or four, just boom, turn and become a nightmare?

Is that what you're saying?

GRANDERSON: I'm not saying that, you know, I have a son. I've been through every possible phase, you know, known to man when it comes to kids embarrassing you in the wrong places. But, you know, column really actually talks about what parents should be doing in terms of understanding the rest of the world should not have to deal with the parenting or the discipline of their child.

So if your kid starts freaking out in the movie theater in the middle of a movie, take him out. I'm sorry if you're going to miss the movie. Tough. That's what it means to be a parent. Don't make the rest of us deal with your screaming kid.

PHILLIPS: OK. Now, as you can imagine, this triggered quite a debate among all the parents on our team. And just for the record, I want you to know that I take your side. But then my EP was saying, oh, just you wait until your kids grow up, the argument will be, hey, I can't just stay at home. I got to go to the grocery store, I got to fly to see family.

You know, LZ, you've got to be more compassionate.

GRANDERSON: You know what? Every situation is different. Every child and parent relationship is different. But I think what we're seeing a trend in which, because there are so many divorce situations in the country now, there's a lot of guilt.

I deal with a lot of guilt in terms how I should be disciplining my son because I felt bad that I was getting divorced to begin with so I didn't want to be the heavy to come down with discipline. But, you know, the bible is true about one thing. You spare the rod, you spoil the child, and I start to see behavior in my son that I didn't want to see continue, so I had to get tough.

PHILLIPS: OK. You know there's debate about whether that really exists in the bible or not. You and I will have to talk about that in the next segment, OK? That'll be the next one. (LAUGHTER)

PHILLIPS: But, so let me ask you, what are you advocating here? Are you advocating spanking, a smack on the cheek or is this, as soon as the baby comes out of the womb, you're giving it that look as in you better listen to me or you're going to know what is coming?

GRANDERSON: I'm advocating discipline, whatever that discipline means to the parent.

What I don't think is that we should be allowing kids to dictate what should happen in the environment. They are not the center of the universe. They're wonderful people. They're wonderful, little cute creates but they're not the center of the universe. And I think if we started treating kids -- if we teach them early to become part of society and not society rotates around them, I think that's better for everyone.

You won't have teachers having to be forced to spend so much of their teaching time disciplining undisciplined children in the classroom. Those teachers can be more focused on actually teaching and those are the kind of progressive things I want to see happening and that's the reason why I wrote the piece.

PHILLIPS: Well, when my twins turn two, you're going to come sit down with them and have a little discussion with them.

LZ, great piece.

GRANDERSON: Absolutely.

PHILLIPS: OK. It was great talking to you.

And, of course, you can read LZ's entire piece, "Permissive Parents, Curb Your Brats" at CNN.com/opinion. And, of course, join the conversation. LZ loves that.

Well, the last space shuttle trip ever is Friday, but private industry is already stepping in. What they have in store, coming up next.

(VIDEO CLIP)

Injured in war but flying high on the Fourth of July. More in two minutes.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories Cross Country.

A barge used to set off fireworks for Boston's Fourth of July celebration smolders in the Charles River. The fire broke out earlier today, but was quickly put out.

In North Carolina, Robert Robertson thought he and some coworkers was being given a police escort to the hospital. Robertson's wife was taken there after suffering a heart attack. Turns out they were wrong. Robertson now faces reckless driving charges.

In Colorado, new heights for some disabled war veterans. A group was taking to tandem sky diving on the Fourth of July. The event was organized by Operation Rebound, a nonprofit group that helps disabled war veterans.

The final shuttle flight is Friday. The Atlantis astronauts are prepping for the end of an era and after that, it's up in the air, or as some worry, maybe nothing's going to be up in the air for a really long time. But our John Zarrella says that the U.S.'s future in space may not be through the government, but, rather, private industry.

(BEGIN VIDEOTAPE)

ZARRELLA: Elon Musk runs Space X. Richard Branson has Virgin Galactic. Both are using their considerable wealth to back bold attempts to make space travel as routine as boarding an airplane.

RICHARD BRANSON, VIRGIN GALACTIC: People used to say, it's impossible to build your own spaceship and your own spaceship company and be able to take people into space. And, you know, that's the kind of challenge I love to sort of prove them wrong.

ELON MUSK, SPACE X: I want to see a future where we are exploring the stars, where we're going to other planets, where we're doing the great things that we read about in science fiction and in the movies.

ZARRELLA(voice-over): There are several companies, some big, some small, who see as NASA moves on to distant planets that weightless region just above the atmosphere. Just out of reach right now becoming quite possibly a good investment.

GEORGE MUSSER, SCIENTIFIC AMERICAN MAGAZINE: NASA is still in there, still with a heavy lift rocket. But we've also got this hopefully flowering of private space flight and that's what's get us the Hilton and the Hertz or in cars or whatever in orbit.

ZARRELLA: Space X and Virgin Galactic are on the verge of not just opening but stepping through that door to the future.

MUSK: We want to make space accessible to everyone. I mean, that's a revolutionary change and incredibly exciting, and it brings the possibility of space travel to all Americans, which is fantastic.

ZARRELLA: Next year, Musk hopes to begin carrying cargo to the International Space Station, eventually astronauts, a commercial company replacing the space shuttle.

UNIDENTIFIED MALE: Confirmed. Docking is complete.

MUSK: We believe firmly we can send astronauts to the space station within three years of receiving a NASA contract to do so.

ZARRELLA: But unless it's safe, NASA's administrator says no U.S. astronaut will be on board.

CHARLIE BOLDEN, NASA ADMINISTRATOR: I cannot allow them to put us in jeopardy by not focusing on crew safety and the like. That's my job.

ZARRELLA: The stakes are high. There is no turning back.

UNIDENTIFIED MALE: Please welcome the future of space travel.

ZARRELLA: With the shuttle retired and astronauts left to riding Russian spaceships, NASA is counting on commercial companies to get it right, make it work. And the more who make it work, the more affordable it will become.

BRANSON: That's the end of a particular era. And it's up to individuals like myself if you're in a position to be able to, you know, achieve wonderful things, you know, to not waste that position.

UNIDENTIFIED FEMALE: Down and locked.

UNIDENTIFIED MALE: Liftoff. Falcon 9.

(END VIDEOTAPE)

PHILLIPS: John Zarrella is now joining us at the Kennedy Space Center. Wow, you're getting me all excited with these pieces John, you're doing such a great job. Let's talk about NASA is kind of turning over these low orbit flights to commercial companies. There's already been so much progression in that area.

Let's talk exactly about, you know, the next great adventure here and what the possibilities will be for those who still want to go up in space.

ZARRELLA: Yes, you know, it's a risky proposition what NASA is doing right now, because basically they are saying all right, you commercial companies, low earth orbit is yours and what we're going to do, NASA is, we're going to start going back to what we do best which is going outward.

So NASA's plan is build a heavy lift rocket, put a capsule on top it and maybe send humans to an asteroid by 2025 and Mars shortly thereafter. But the real -- the problems are Kyra that -- that heavy- lift rocket they need hasn't been built yet. The capsule is, in fact, a mock-up that was just delivered here today so people could take a look at it.

But the issues are will there be a national will down the road to fund a mission to Mars or an asteroid? And some people who are in NASA's corner are still, though, really concerned that there may not be a national will and there may not be the money down the road to do it. Certainly not to go it alone on pricey missions like that.

PHILLIPS: Well, we look forward to the special coverage, John. You're going to be a big part of that.

ZARRELLA: Yes.

PHILLIPS: Thank you so much. Stay with CNN for a live coverage. It's this Friday at 10:00 a.m. Eastern as the Space Shuttle "Atlantis," takes off for the very last time.

Will and Kate's North American tour rolls on. And this morning, they are in Yellow Knife, Canada. They're going to play a little field hockey. But yesterday, it was dragon boats. So who won? The Duke or the Duchess?

(COMMERCIAL BREAK)

PHILLIPS: Well, they continue to charm Canada. Will and Kate have cooked, buggied, cruised and now rode, this time in Prince Edward Island.

(BEGIN VIDEO CLIP)

MAX FOSTER, CNN INTERNATIONAL ANCHOR (voice-over): The Duke and Duchess hit shot at town on Prince Edward Island.

(on camera): How was it, was it worth it?

UNIDENTIFIED FEMALE: It was very exciting. He was so -- he was so personable and charming.

FOSTER: What did you talk about?

UNIDENTIFIED FEMALE: I had my iPad and he said he seen that a lot lately they are the new toy and I said -- I'm sorry for being rude and shook his hand and he was very nice about it.

FOSTER: What did you guys speak about?

UNIDENTIFIED FEMALE: The camera just kind of following. He said aren't they the most interesting things to have as they just keep following you, like this if you want to just capture every picture. Yes and I am still shaking. This is so exciting.

FOSTER (voice-over): William then took to the skies, a search-and- rescue pilot by profession, he was keen to meet up with his Canadian counterparts. They're famous for this risky maneuver. An emergency helicopter landing on water. Palisades, no doubt, holding their breath. Then the couple took to the water together, each in their own dragon boats. They are a sporty and competitive couple, so the winner was suitably satisfied.

Then to the beach, this area is famous for its seafood, sand sculptures and smudging (ph) a traditional welcoming ceremony.

(END VIDEO CLIP)

MAX FOSTER, CNN INTERNATIONAL ANCHOR: And the next stop on the tour is the Northwestern territory. The couple wanted to experience the great Canadian outdoors, as they call it. And they're going to go and meet some local people living local lives and sitting around the camp fires and amongst tepees and also the -- the Duchess getting involved in some local crafts. And she was keen to do that so she's going to see the process of moose leather being made out there in the Northwestern territories -- Kyra. PHILLIPS: Our Max Foster there. And today Yellow Knife, including a game of what else? Street hockey with the local kids.

Well, we're following lots of developments in the next hour of CNN NEWSROOM. Let's check in first with Brianna Keilar at the White House -- Brianna.

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Hi there Kyra, it's still center stage here in Washington. This negotiations over increasing the debt ceiling, but so far for this week there are no meetings scheduled between the White House and congressional leaders. I'll tell you what the impasse is all about at the top of the hour.

JACQUI JERAS, AMS METEOROLOGIST: I'm meteorologist, Jacqui Jeras. Up to eight people still missing after a boat capsizes in the Gulf of California. Find out how the weather could impact the rescue efforts coming up at the top of the hour.

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: And I'm David Mattingly in Orlando with the latest on the deliberations in the Casey Anthony murder trial. I'll have that story for you at the next hour.

PHILLIPS: All right. Thanks guys. And coming up also in the next hour, more legal trouble for former IMF head, Dominique Strauss-Kahn. Lawyers for a French writer going to court today. She alleges that he tried to rape her eight years ago. We're going to talk about it with criminal defense attorney Holly Hughes.

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PHILLIPS: Two of baseball's biggest comebacks? Jeff Fischel.

JEFF FISCHEL, HLN SPORTS: That's right. You know, baseball needs its stars especially as we get to our pennant race time. And it's good to see these future hall of famers back.

Albert Pujols could be back from a broken wrist today. Even his recovery from injury is adding to the legend. He got heart just 16 days ago. He was supposed to be out four to six weeks, maybe longer; just another reason why they call him the machine. So we'll see if Pujols makes it.

Last night, shortstop Derek Jeter returned to the Yankees' line up. He missed 18 games with a strained right cal. He did not get a hit though he did reach base on an errand, this one right here. The Yankees lost, six to three to the Indians. Jeter is six hits away from 3,000.

Adam Dunn has been one of baseballs, a great slugger for a decade, but this year he has been awful. The White Sox fans have noticed, the single off Casey's Jeff France; just a single got, yes, a standing ovation. The hometown fans of Chicago mocking him. He played along and even tipped his cap. It was only his second hit all season long and he's a lefty. Later in the game, though he got a second standing o, and this one he earned. A huge shot gone. He said it had been so long he almost forgot what it was like to get a homerun. That shot was the difference as the Sox won, 5-4.

Phillies and Marlins; Phillies Pitcher Van Worley goes up the middle. It bounces off from short stop Hanley Ramirez. Second baseman Omar Infante bare hands and throws the first for the out. What a great play by Infante. Flips for the out but Worley's the one who did the job. A two-hit shut-out, Phillies win 1-0.

Finally, a welcome home party for Wimbledon champ Novak Djokovic. Tens of thousands of people have showed up at a square in Belgrade. Djokovic called it the greatest day of his life. He sang and danced to the music of his favorite Serbian band, I know you have them on the iPod. Tap 011 I think is what you call them.

PHILLIPS: You know what's funny. I'm familiar with this band.

FISCHEL: No, come on.

PHILLIPS: Yes, that threw you for a loop. I can't name the song but I'll get back to you on that.

FISCHEL: I listened to them for a while this morning. They kind of sound like a Serbian Abba. That's kind of my impression of them. But it's only my first exposure, I might put them on my iPod as well.

PHILLIPS: I'll school you. It came through a friend actually from that part of the world.

FISCHEL: Please do.

PHILLIPS: All right. Thanks Jeff.

FISCHEL: That's OK.