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'News of the World' Shutting Down; Debt Ceiling White House Talks; Couple Bids Shuttles Good-Bye; Casey Anthony Goes Back to Jail, For Six Days More; Doctors Grow Organ in Lab; Terrorists Seek Body Bombs; Japan's Carnivore Girls

Aired July 07, 2011 - 12:00   ET

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

SUZANNE MALVEAUX, CNN ANCHOR: Top of the hour, I'm Suzanne Malveaux. Want to get you up to speed, we have breaking news.

The British newspaper "News of the World" is shutting down. Sunday's paper is going to be the last. The tabloid has faced intense scrutiny this week over a phone-hacking scandal. Most recently, the paper hacked the voicemail of a kidnapped teenager who turned up dead.

Reports also say the "News of the World" hacked relatives of terror victim and war dead. That prompted advertisers to start fleeing, drove News Corp's stock down. Now, the tabloid is part of Rupert Murdoch's global media empire, which also includes Fox News and "The Wall Street Journal."

Our Dan Rivers joins us live from London with more.

Dan, essentially, how did it get to this point, where they said, you know what, we've got to shut this thing down?

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I think the "News of the World" was becoming a toxic brand, and they had to do something to stem the flow of advertising away from News International. It is an incredible development, it must be said. It's only just happened in the last 10 or 15 minutes or so.

But James Murdoch, who is the deputy chief operating officer of the parent company, News Corp, and chairman of News International, Rupert Murdoch's son, gave a statement to staff saying the good things the "News of the World" does, however, have been solid (ph) by behavior that was wrong. He went on to say that, "Having consulted senior colleagues, I have decided we must take further decisive action with respect to the paper."

This Sunday will be the last edition of the "News of the World." And in addition, the revenue from this weekend's paper will go to good causes.

It is an incredible development. The "News of the World" has been around since 1843. It is one of the biggest selling papers in Britain.

It has a reputation second to none, really, for uncovering scandals and gossip, and has been at the center of this massive controversy that has exploded with revelations that they had hacked into the voicemail messages of a 13-year-old school girl who was murdered, in order to get salacious stories. That has provoked a huge backlash here, with an emergency debate in the British parliament.

The prime minister came out and roundly condemned them. The advertisers were fleeing in droves. And now they have taken the ultimate sanction, to close down that paper completely.

MALVEAUX: Dan, do we think it was that case of the dead teenager that was the final straw here? Because there have been a lot of complaints, and we've even seen recently celebrities coming forward. I believe Hugh Grant was one of them.

But was that the case that was brought before them, where they just realized they could just not survive?

RIVERS: I think if that had been on its own, it would have been bad enough, and they may well have taken the decision. But that, coupled with the news that they had allegedly hacked into the voicemail messages of the families of soldiers who died in Afghanistan while they were grieving, that they had hacked into the voicemail messages of families killed in a terrorist attack here in Britain in 2005, it just got worse and worse.

People could not believe the kind of behavior that allegedly had been going on at this tabloid, and it just got to the point where everyone in Britain was horrified with the continuing stream of allegations. And I think they realized the game was up, they had no choice, really, but to close this paper.

There was talk of a huge boycott, that no one was going to buy this weekend, the advertisers were leaving in droves. The share price yesterday of News Corp fell more than three percent. They were in really being financial trouble here, so I think they have clearly decided to cut their losses and end it.

We don't know quite how many job losses that that's going to mean, but there will be a lot of people here who will feel that this is right and that it is the result of their own bad behavior, their appalling behavior over the previous 10 years, that it's come to this.

MALVEAUX: Dan, do we know, is this isolated to this one particular British tabloid? Or is this what other tabloids are doing? Could we see almost a domino effect where there are other papers and publications that are impacted by what we have seen with this?

RIVERS: Yes. I think there is no doubt that the "News of the World" were not alone in this practice of hacking into people's voicemails. There are suggestions that it was endemic, really, across all newspapers in Britain for a certain time. Now, clearly, people are aware of how just illegal and controversial it is.

But from the people I've been speaking to, former journalists, for example, on the "News of the World," said everyone was up to this. It's not just the "News of the World." And, in fact, the "News of the World," by no means, were the worst perpetrators of this. But lots of other tabloid newspapers were doing it on an even greater scale.

The "News of the World" and News International had maintained this line that it was a rogue reporter, initially. They then said that the editor was not aware of what was going on, that they had sort of -- it was a cabal of journalists who were up to no good. That became more and more unbelievable as these allegations continued because of the sheer scale of it. You can't be an editor of a newspaper and have all these different stories appearing on your front page without asking where the stories are coming from.

MALVEAUX: Sure. All right. Dan Rivers, thank you very much for the breaking news.

Casey Anthony, she's going to go free next Wednesday. An Orlando jury found her not guilty of killing her daughter on Tuesday, but they did convict her of lying to police.

The judge gave her the maximum today, four years, to be served consecutively. But with time that Anthony has already spent in jail and good behavior, she walks in six days.

One of the jurors says the not guilty verdicts made the members of the panel "sick to our stomachs." Jennifer Ford told ABC News people should not interpret the acquittal as Casey Anthony is innocent.

(BEGIN VIDEO CLIP)

JENNIFER FORD, JUROR: I'm not convinced that she didn't, but I also couldn't exclude the possibility of it being an accident. So I can't find her guilty of a crime if I'm not sure a crime was committed.

So it was just that not knowing exactly what happened and not knowing if we made the right choice. And of course we don't want to set someone free if they killed their beautiful daughter.

(END VIDEO CLIP)

MALVEAUX: His attorney says Dominique Strauss-Kahn will never plead guilty to anything. A hotel housekeeper accuses Strauss-Kahn of sexual assault. The former IMF chief's lawyer sat down with Manhattan prosecutors Wednesday to discuss the next steps in the case. Prosecutors have questioned the housekeeper's credibility.

A federal appeals court is ordering the Pentagon to stop enforcing "Don't Ask, Don't Tell" immediately. Congress repealed the policy last winter, but the Obama administration favors a slow transition to open service by gays and lesbians in the military. If that's to continue, the administration will have to get the U.S. Supreme Court to block the appeals court order.

Relatives are pleading with rescuers to keep looking for seven Americans missing off the coast of Mexico. They've even set up a Facebook page for donations to pay for the search teams. Nineteen American passengers and 16 crew members were rescued when their fishing boat sank last weekend. One American is known dead. Facebook wants to be your phone company. The social site has announced a new video chat service in a partnership with Skype. It allows you to talk to Facebook friends face to face. It's just as quick as a traditional phone call.

(BEGIN VIDEO CLIP)

MARK ZUCKERBERG, CEO, FACEBOOK: It's not the case like with traditional Skype, where both people have to have downloaded Skype beforehand. So we think that this is awesome, because we're using the best technology out there for doing video chat, with the best social infrastructure that's out there in order to create some really cool, new scenarios.

(END VIDEO CLIP)

MALVEAUX: Police are looking for a man who walked out of a San Francisco art gallery with a Picasso under his arm. Police say the well-dressed thief went straight to the Picasso, picked it up, walked out, got into a cab that was waiting for him. The pencil drawing titled "Head of a Woman" is valued at $200,000. Picasso did the sketch in 1965.

The rush to make a deal to reduce the nation's debt forced a meeting at the White House today. Democratic sources say that the president is proposing as much as $4 trillion to reduce the debt over the next 10 years. That includes Social Security and Medicare, but he wants the Republicans to give up something as well -- their hard line on tax reform.

Our CNN White House correspondent, Brianna Keilar, is live from the White House.

Brianna, you were inside that meeting as they came out there. You saw the president, the Democrats, the Republicans there. You even tried to shout a question at the president.

What did you ask him?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: I asked him if Social Security, Suzanne, was on the table. I asked him twice and he wouldn't answer.

You've heard the White House say, you've heard Democrats and Republicans say, they're not going to negotiate this through the press or in public. And certainly he stuck to that. And all we heard was some small talk between the president and Senator Jon Kyl about the sand storm in Arizona.

If you really must know what was discussed while we were there, nothing, really. But as you mentioned, Democratic sources who are familiar with negotiations revealed to us last evening, told CNN, that the president is considering a many more ambitious plan.

Our Jessica Yellin, reporting that this was $3 trillion to $4 trillion in deficit savings over the next 10 years. That's much bigger than the president was considering before, as much as double, maybe even more.

A Republican source familiar with negotiations, Suzanne, telling me today and confirming, really, suspicions about what that would entail, because it's such a big comprehensive plan. That would include putting all of the entitlements, Social Security, Medicare, Medicaid reform, on the table, along with comprehensive tax reform.

And it's really striking, Suzanne. You can imagine, that's a very heavy lift, considering that, seemingly, for the last couple of weeks, these talks have been at an impasse over tax increases. Democrats want them, Republicans don't. Really, that's very ambitious adding to this, trying to get that done in such a short amount of time.

MALVEAUX: Sure. I know that frustration, not getting an answer to your question there when you're right there with the president, hoping to get something out of that meeting.

But tell us a little bit -- the treasury secretary, he set a deadline, August 2nd, to raise the debt ceiling. And Speaker of the House Boehner, he announced that they have a 50/50 chance of coming up with a compromise.

So what happens if they don't make this deadline?

KEILAR: No, and he also said that he'll know in the next few days, he'll get a better sense of it coming to a deal. And that was something that he told our producers at CNN.

I mean, basically, this would be, according to the treasury, financially ruinous for the U.S. You would have foreign nations that now hold some of the U.S. debt. They wouldn't want to hold the U.S. debt if the U.S. isn't going to be making good on the debts that they own. There would be -- so that issue with foreign investments.

The credit rating would be downgraded. And then, also, I think, Suzanne, these are sort of large, broad strokes that would rock the U.S. market, it would rock the global market. But this will also affect Americans on a very real level.

Just in the course of your life, you borrow money to buy a home, to buy a car, you have a 401(k). And obviously, if the markets were to be shaken, if interest rates were to be severely affected, which the expectation is, all of those things that we kind of go about doing, and that have even been impacted over the course of the financial crisis, would be even more difficult and affect us on a very real level.

MALVEAUX: And tell us a little bit about the Republicans, the Republican congressional leaders. Do we think that they're going to give a little on the no tax increase pledge? Is there any wiggle room there?

KEILAR: What they are talking about is comprehensive tax reform, coupled to this idea of entitlement reform. They really want entitlement reform. What they're calling for, and what Speaker Boehner has discussed with President Obama, I'm told by a Republican source, is reducing the individual tax rate, the individual tax rate, and also simplifying, as they put it, the tax code, getting rid of tax loopholes, credits that a lot of people and a lot of corporations use so that they pay vastly less in taxes.

But again, Suzanne, there's no deal. This is just something that's being discussed. And sources that we are talking to are cautioning, this is very preliminary, this is just on the table right now.

MALVEAUX: All right. Brianna Keilar, thank you so much. Excellent reporting.

Here's a rundown of some of the stories that we're covering over the next hour.

First, the end of the space shuttle era. One couple talks about the future of their business as Atlantis prepares for a final liftoff.

And a British tabloid folds as more victims of its alleged phone hacking keep coming forward.

Then, how the hacking scandal is hurting investors in Rupert Murdoch's company here in the United States.

And later, our legal experts debate the future for Casey Anthony after she learns she'll be free in six days.

And a man receives the first-ever organ grown from stem cells. We're going to show you how that was done.

(COMMERCIAL BREAK)

MALVEAUX: We're looking at live pictures here of Kennedy Space Center. Some pictures there.

There is just absolute rain that is pouring down there, as we await to see if the weather is going to cooperate. We're just hours away from NASA's final space shuttle launch. And you see the live picture there of the shuttle in the rain that is pouring down.

The scheduled launch is CNN's "In-Depth" focus this week. We'll see if it actually goes without a hitch, or whether or not this is actually going to be delayed.

The shuttle program is ending with the Atlantis mission to the International Space Station. For one couple, it's going to be like saying good-bye to a family member.

CNN's Brooke Baldwin brings us that story.

(BEGIN VIDEOTAPE)

BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): Through the decades, Brenda and Gerry Mulberry marked major milestones with the launches of the space shuttle.

BRENDA MULBERRY, OWNER, SPACE SHIRTS: We watched the launch of STS-1 together from the Titan complex when I was 21 years old.

BALDWIN (on camera): A match made in space heaven.

MULBERRY: Yes.

BALDWIN (voice-over): From one of their first date, to Brenda opening up her own T-shirt shop, Space Shirts -- it's just two miles down the road from Kennedy Space Center. And right now her business is booming. But with the launch of the 135th and final space shuttle mission, Gerry is marking a different kind of memory.

GERRY MULBERRY, FMR. NASA EMPLOYEE/ROCKET SCIENTIST: I started in April of '81.

BALDWIN (on camera): '81. And so you worked from '81 until?

G. MULBERRY: Until April of this year. With the program shutting down, you know, everybody got cut back. And our department got cut back a little earlier than some of the others, so it was time to move on.

BALDWIN (voice-over): Thirty years to the month Gerry was laid off.

He's one of 7,000 workers at Kennedy Space Center alone who are already jobless or soon will be. It's eerily familiar to the last time this space coast saw manned space flight at a standstill. That was after the last Apollo mission in 1975, six years before the launch of the first space shuttle.

This time around, Gerry says the job outlook is better.

G. MULBERRY: There's a barrier which is going to build a business jet right at Melbourne Airport. They're going to do their final assembly there, so it's a little different now.

BALDWIN: While this area is steeped in space, tourism officials say space tourism makes up just five percent of all the tourism here now. Beaches, cruise ships and the visitor center will still bring in the tourists, but that doesn't take the sting out for someone who just lost his dream job.

(on camera): What's worst, the loss of the space shuttle era or the loss of NASA family?

G. MULBERRY: Hmm, good question. I think it really goes together. There's a big tradition out there that you get a picture signed. And, you know, you get that, and that's it.

So it does bother you. It's like when you give your badge in for the last time, it gets to you.

BALDWIN (voice-over): For now, Gerry is helping his wife sell shirts and souvenirs to tourists in town from all around the world. No matter what happens, it will be a bittersweet chapter for a couple who's watched and hoped and loved 134 times. And now they wait for their next mission.

B. MULBERRY: So we're going to keep printing, and he's going to go find another job. And, you know, I mean, I love him to death, but he's a rocket scientist, you know? And it doesn't take a rocket scientist to print T-shirts.

BALDWIN: Brooke Baldwin, CNN, Kennedy Space Center.

(END VIDEOTAPE)

MALVEAUX: All right.

(WEATHER REPORT)

MALVEAUX: CNN plans special coverage of tomorrow morning's scheduled launch of Atlantis from the Kennedy Space Center. Our coverage of the last shuttle flight, it begins at 10:00 a.m. Eastern. The launch is set for 11:26.

We've got three great stories. Only one of them is going to air this hour. "Choose the News" you would like to see. Here are your choices.

First, a veteran disabled in the Iraq War encourages other wounded vets to become active and physically fit. One of their first challenges, skydiving.

Second, the Russian government thinks radio can change hearts and minds by giving Russia's view on things, and they're trying to do it from Washington.

And third, Japan's aggressive young women are driving a new fad in sushi. We're not talking about raw fish. It's sushi made with raw meat. And the women are called "Carnivore Girls."

You can vote by texting 22360. Vote 1 for "Injured Vets Skydive"; 2 for "Russian Radio in D.C.'; or 3, "Japan's Carnivore Girls."

The winning story is going to air in the next hour.

(COMMERCIAL BREAK)

MALVEAUX: Al Qaeda is making a comeback in Afghanistan. After driving the terror group across the border into Pakistan, U.S. commanders are now seeing a sudden resurgence just as American troops are getting ready to leave.

CNN's Nick Paton Walsh joined an Army patrol on the hunt.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT (voice-over): Almost a decade in, the hunt for al Qaeda in one part of eastern Afghanistan looks like this: Americans pushing the Afghans to the front, taking the high ground in hills impossible to police. The pressure for less Americans here is extreme, but the Afghans only mustered five men for this patrol.

UNIDENTIFIED MALE: When you shoot, all right, it's got to be five-to- seven-round bursts. Then go.

WALSH: And, despite this training, are barely after (ph) policing the local villages, let alone taking on the very terrorist network America came here to eradicate.

(on camera): Well, it's here that Afghanistan's future looks a lot like its past. American control does not extend up into this valley, and high on those ridge lines they found safe havens for al Qaeda.

(voice-over): U.S. and Afghan officials have revealed to CNN they located here al Qaeda fighters using these secluded Alpine villages for training and planning.

In June, hundreds of Americans were airlifted in 9,000 feet up, but they faced fierce resistance and a longer, nastier fight than planned. U.S. officials say they killed 120 insurgents and top leaders, many Taliban, but several of them Arabs linked to al Qaeda, damaging their network. Yet, the clashes reveal that al Qaeda, for years, said to be mostly across the border in Pakistan, is again a concern back where they started, in Afghanistan's hills.

We push down into the Wata Pur Valley, still an insurgent stronghold. High-tech American attack helicopters buzzed overhead until militants shot at them from up the valley.

SECOND LT. TREY VAN WYHE, U.S. ARMY: It's uncharacteristic for the Taliban, I know, from around here. They're getting people gutsy. Right past there, usually our patrol isn't on pushup too far past that, because if you push up any farther past that, you're going to take enemy contact. It's pretty certain.

WALSH: The Afghans clear about who lay and wait for them ahead.

UNIDENTIFIED MALE (through translator): It's very dangerous. There are Taliban, Arabs, Pakistanis there.

WALSH: At the foot of the valley, the American base is often hit by potshots, sometimes from lone gunmen up high, who they then mortar. Al Qaeda's return to these remote hills could tie America's hands, making it harder to justify pulling back from here.

The terrorist network that made America's case for invading, slipping back in just when America makes its case to leave.

Nick Paton Walsh, CNN, Kunar, Afghanistan.

(END VIDEOTAPE)

MALVEAUX: Casey Anthony goes back to jail, but not for long. We're going to find out what's next for Anthony after she was sentenced this morning for lying to police. (COMMERCIAL BREAK)

MALVEAUX: Casey Anthony will get out of jail six days from today. That is next Wednesday. We've got a confirmation of a release date from a court reporter just within the last hour.

(BEGIN VIDEO CLIP)

KAREN LEVY, COURT REPORTER: The defendant was given credit for 1,043 days. And at this time, her release date has been calculated as July 13th, 2011.

(END VIDEO CLIP)

MALVEAUX: So, Casey Anthony only has six more days behind bars. Judge Belvin Perry gave the Florida woman the maximum sentence possible for four counts of lying to police in connection with the death of her daughter.

We're joined by two legal experts: defense attorney and former prosecutor, Holly Hughes. She's here with me in Atlanta. And criminal defense attorney Richard Herman, who joins us from Las Vegas.

So, Richard, to you first. Essentially, she got six more days. I mean, is she treated any differently now that she's got six more days?

RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: Well, she's in segregation, And, by the way, I spoke to a Pinellas County jail official who says my calculation is right and she should be out today. In any event, maybe she will be later on. Who knows?

But listen, she's going to be in segregation. She's in danger in prison right now. They have to keep her segregated. Child killers are the number one targets in prisons. And if she's going to stay there any longer than today, they really have to watch over her to protect her.

MALVEAUX: Holly, is she in any more danger now, because in a sense, she's been found not guilty?

HOLLY HUGHES, CRIMINAL DEFENSE ATTORNEY: Yes, because beforehand, everybody was thinking the "system," quote/unquote, was going to take care of it and get some justice for this baby. Right now, there's probably a lot of folks sitting in that jail that think she got away with murder, just like we see out in the public.

You know, the system did what it was supposed to do, it functioned as you should have. But that doesn't stop folks from feeling like it was the wrong verdict. And so, you got a lot of anger and a lot of rage. And now, that those folks are locked up with her and they're thinking she's a baby killer and she's going to walk away, so therefore, we need to exact justice.

So, Richard is right, they are going to have to monitor her closely. If they she stays in their custody for the next six days, I mean, serve and protect. That's their charge. MALVEAUX: Let's play a little bit of Dr. Drew, because he actually had an interesting take on what things will be like after for Casey Anthony, after she gets out (AUDIO GAP).

(BEGIN VIDEO CLIP)

DR. DREW PINSKY, HOST, HLN'S "DR. DREW": What you see is one of two things. If she's indeed primarily a criminal, is you'll see more criminal behavior. I mean, O.J. Simpson, I hope, has taught us that, that these people go out and do the same thing all over again at some fashion. They're their own worst enemy.

If this is primarily a sick person, which as we begin to hear more about this case and people begin talking now that the case is over, there's a lot of impairment here very, very clearly. If she's a sick person, she will continue to create the chaos and vortex that we've all gotten sucked into.

I mean, think about it, one young woman's behavior has sucked hundreds of lives into her vortex. She is capable of a lot of damage whether or not she's a murderer. So, we will see more of that kid of chaos.

(END VIDEO CLIP)

MALVEAUX: Richard, do you agree? Do you think she's going to commit crimes? And this is going to be a troubled life for her, this move forward?

HERMAN: Well, she's certainly not mother of the year, Suzanne. I mean, let's face it. Her behavior with this child was abhorrent. So, she may be innocent of the charges brought, however this is not a great mother. And her serial compulsive lying was completely out of control.

Who's to say? Why should it stop? Of course, it's going to continue.

And I happen to agree with Dr. Drew on this. I think that she's going to spin herself into trouble. She needs a support group around her.

I just don't see anybody. She can't live in Baez' office, so I don't know what's going to happen here. But think she's in a heap of trouble.

MALVEAUX: Well, yes, I'm going to ask Holly that.

I mean, where does she go now? Does she go back to her family? Is that even possible? Where does she go?

HUGHES: You know what? This family is dysfunctional is a word we've heard tossed around, on a level we have never seen before.

So, yes, I do think at some point -- it may not happen today or next week, but I think there is going to be that stage where they say, OK, you know, you are what you are and you've done what you've done, but come on back. I think they will take her back. I really do. But it is going to be a hard road. Dr. Drew and Richard -- they nailed it. This woman -- we have heard from the professionals. You know, she is sociopathic. She's a pathological life.

Look at all her behavior, not just with this baby. I mean, we all got caught up, because that was the trauma. She stole hundreds of checks from her mother Cindy. She stole how many checks from her friend Amy Huizenga, and went on the shopping spree when her baby was missing?

There were allegations that she stole from her grandfather's retirement account. And that's sort of what led to this big blowup fight between Cindy and Casey the night before.

So, she's not going to stop. And you know why? Because she now feels vindicated. She feels like all the lies she told, and all that crazy behavior, she got away with it. It's OK. The jury said no problem.

MALVEAUX: Richard, is she going to need security? I mean, who's going to pay for her security if people are out to get here?

HERMAN: That's the problem. Nobody. The dichotomy here is that law enforcement who they blessed with her in the trial is now charged with protecting her life.

Miller said last night on one of our shows that he heard from an aunt in Texas that said they would be happy to take her in, which I don't know why they would publicize that. But she's got to get out of Florida, number one. For her own safety, she must get out of the state of Florida.

MALVEAUX: Should she go underground, take on an alias or something and go underground essentially?

HUGHES: Absolutely.

HERMAN: Yes, if she was my client, that's what I would tell her to do. Absolutely.

She's in trouble, Suzanne. It's really -- you know, she's probably the most hated woman in the United States right now. And she needs to be protected.

MALVEAUX: We'll have to see what happens --

HERMAN: Whether you agree or not with the verdict.

MALVEAUX: Right. Well, six days from now she will be released next Wednesday --

HERMAN: Or today.

MALVEAUX: Or, you know, how that unfolds and whether or not she has the kind of security he needs. Richard, thank you. Holly, thank you very much. Appreciate it.

British tabloid in print for 168 years is forced to shut down. What caused it to fold and how it's having a direct impact on thousands of U.S. investors today.

(COMMERCIAL BREAK)

MALVEAUX: Scandal killed a 168-year-old newspaper today. News Corp said Sunday's edition of "News of the World" will be the last. People across Britain reacted with revulsion after learning the paper hacked the voicemail of a kidnapped teenager. She turned up dead.

Now there are revelations "News of the World" eavesdropped on relatives of terror victims and war dead.

I want to go to Alison Kosik at the New York Stock Exchange.

Alison, advertisers -- they were banning this paper beforehand. Now, it looks like News Corp stuck out a really big hit here -- took a hit?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Well, News Corp shares took a hit yesterday, Suzanne. They're rebounding today on shareholders like this kind of news when they hear that when something is in trouble, like "News of the World" is in trouble and it's shutting down, it means advertisers for the company at least, the hope is that the advertisers won't sort of boycott the other properties of News Corp, so shareholders see this as a positive that "News of the World" is shutting down.

And then we got the other possible ramification for News Corp from this alleged hacking scandal. You know, at the moment, News Corp is trying to buy Britain Sky Broadcasting, and the scandal could put that $12.5 billion deal in jeopardy.

But putting this in an even bigger perspective for you -- News Corp is huge. Think about it. It made $600 million just last quarter. It owns FOX. It owns "The Wall Street Journal," "The New York Post," Harper Collins. Its stock is up 9 percent for the year.

But, you know what? Even with this newspaper shutting down, the big questions going forward is, you know, will this hit the reputation of other News Corp entities -- Suzanne.

MALVEAUX: Very good question. And, Alison, give us a sense of how the stocks are doing today?

KOSIK: Well, we are seeing stocks higher. The Dow up 93. The NASDAQ better by 37. We're seeing an immediate reaction after that positive ADP report.

Also, we got a positive report on weekly initial jobless claims. Of course, everybody waiting for the big government jobs report tomorrow, but this ADP report that came in showing that 157,000 private sector jobs were added does give some optimism here on the floor of the exchange before that government jobs report comes out on Friday -- Suzanne.

MALVEAUX: All right. Alison, thanks.

Well, doctors in Europe may have hit on a medical breakthrough. An artificial organ grown in a lab using a man's own stem cells.

(COMMERCIAL BREAK)

MALVEAUX: Here's a reminder about your "Choose the News" stories for today. You can vote for your favorite by texting "22360."

Text "1" for injured vets skydive. A disabled war veteran encourages others to stay fit, "2" for Russian radio in D.C. Russia reaches out to Americans by hitting the air waves, or "3" for Japan's carnivore girls. How a raw meat sushi fad mirrors changing gender roles in Japan. The winning story is going to air in just 10 minutes.

Well, a cancer patient who was given less than a month to live now has a much better outlook thanks to an artificial organ grown with his own cells. Senior medical correspondent Elizabeth Cohen is here to explain what all of it means.

What did the doctors do, Elizabeth, to this man?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Well, I'll tell you, this man was really at the end of his road, Suzanne. He's 36 years old. He had this huge tumor on his trachea. But, like many trachea tumors, it was caught really late. So they treated him, but they could do nothing more. They said, you need a trachea from a cadaver. But that line is so long, he would have died waiting for it.

So doctors said, you know what, we're going to make you one. So they made him a trachea out of plastic --

MALVEAUX: Wow.

COHEN: Out of plastic. This sort of spongy, bendable plastic, and then they coated it with his own stem cells. So there it is uncoated. So that's the plastic trachea, which is the windpipe. You know, it's sort of in this region. And there was a tumor. That green stuff there that you see, Suzanne?

MALVEAUX: Yes. Right.

COHEN: That green stuff is all tumor. OK. So that's -- as you can see, that is huge. And so they built him a new one, coated it with his stem cells, and his body accepted it. His body said, oh, this is me. And his veins actually grew -- his vessels actually grew into it, because his body thought it was a part of him.

MALVEAUX: So does everybody with trachea cancer, can they get this treatment now?

COHEN: It will be wonderful if that day ever comes to pass because right now they can't do much for people with trachea cancer. But first they have to try this in more people. Well, first, they have to follow him. They need to see how he does over time.

MALVEAUX: Sure.

COHEN: And then they need to try it in more people. So right now they're going to try to start to do a clinical trial with like 10, 20 people and see how it goes. But he had this surgery about a month ago and he's being discharged from the hospital. You know, he's healthy enough that he's leaving.

MALVEAUX: Unbelievable. So most people have to wait for a cadaver to have this. Is this the kind of thing that can just be grown now in a dish?

COHEN: You know, the dream -- the dreamavision is that one day we won't have to wait for cadaver organs, we'll be able to just make a kidney, make a liver in the lab. This is a baby, baby, baby step in that direction. Because here they made a fake one. They coated it with stem cells from his bone marrow so that his body would think that it was his.

MALVEAUX: Right.

COHEN: And if they can do that with more organs, that would be a wonderful thing. This is proof of principle. But remember, a windpipe is a very kind of basic structure. It's not like a heart that has valves and, you know, different parts and whatnot. So, but, you know, maybe in time they can do this with more organs. That would be an incredible day.

MALVEAUX: All right. It would be. Thank you, Elizabeth. Appreciate it.

COHEN: OK, thanks.

MALVEAUX: We're going to take a quick break.

(COMMERCIAL BREAK)

MALVEAUX: We have a follow-up to the story we first brought to you yesterday. According to U.S. security officials, terrorists are considering a new tactic to take out commercial airliners -- human bombs. And those officials think they know who hatched the idea. Here's Brian Todd.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): U.S. security officials tell CNN of a chilling tactic terrorists might try next, targeting commercial aircraft by surgically implanting explosives or bomb components inside the bodies of attackers.

JOHN PISTOLE, TSA ADMINISTRATOR: We see this as the latest iteration or the evolution of what terrorist groups are trying to do to circumvent our security layers and to perhaps defeat our societal norms.

TODD: Officials say there's fresh intelligence showing terrorists have a renewed interest in planting bombs in bodies, but there's no specific or imminent threat. One U.S. officials says a man suspected of involvement in this effort is Ibrahim Asiri, bombmaking mastermind for al Qaeda in the Arabian peninsula. Asiri is believed to have planned the 2009 plot to kill Saudi Arabia's interior minister by placing a bomb in the rectal cavity or underwear of his own brother. Asiri's brother was killed, but the minister escaped. I asked Rafi Ron, Israel's former top aviation security official, about surgically implanted bombs.

TODD (on camera): What does this tell you about where the terrorist are versus where security officials are right now?

RAFI RON, NEW AGE SECURITY SOLUTIONS: Well, it tells me that we have exhausted the capabilities of the technology available to us because there's no way we can take the next step after the body scanners to figure out when a person carries a device inside his body.

TODD (voice-over): Ron and other experts say those full-body scanners, which we once tested out, can see through clothing, can find prosthesis, breast implants, contours, but cannot detects bombs inside the body. I spoke with Dr. Jack Sava, chief trauma surgeon at Washington Hospital Center, about how terrorists might try to pull this off.

TODD (on camera): Do you need a hospital to do this or can you do it in some kind of a terrorist field camp? What kind of training do you need?

DR. JACK SAVA, WASHINGTON HOSPITAL CENTER: Well, I think, again, the fundamental question is going to be, how well do you want to do it? If you want to do it to 20 people and have 19 of them die in one success that you can send on your mission, that would be easier. You could do that sloppy. But if you wanted to do it well and expect them all to remain sterile, not cause infection, I think then you're largely going to be talking about a hospital, or at least a clinic setting.

TODD (voice-over): Explosives, he says, could be placed in the abdomen or elsewhere.

TODD (on camera): Dr. Sava says an explosive could be implanted in a prosthetic device, like a fake hip, a breast implant. He says a non- sophisticated implanted bomb might last three to four days inside the body before complication sets in. But if it's a sophisticated surgery and implant, it could last weeks, months, or even longer.

TODD (voice-over): Experts disagree on whether a bomb inside a body would need an external detonator or ignite it or if it could be set off with a timer. It's also not clear if the body itself could blunt the impact of an explosion.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

MALVEAUX: We've got some breaking news for you. In about 10 minutes or so we're going to hear from President Obama at the White House. He's going to go to the Briefing Room to address reporters. This comes after talks he had this morning with Republican and Democratic leadership over the budget and also dealing with the federal deficit and raising the debt ceiling. All of those talks taking place at the White House earlier today. We'll see if there are any breakthrough that happened in those talks. The Republicans saying no new taxes, no tax hikes. The president saying he's willing to cut some $4 trillion over 10 years when it comes to government spending.

So we'll see if there are any breakthroughs that happened in those talks that happened earlier at the White House. But in 10 minutes, we are going to hear from the president. This was not scheduled before and this has been added to the schedule to update reporters and the American people on how these talks are going. We're going to have more after the break.

(COMMERCIAL BREAK)

MALVEAUX: We've got live pictures inside the White House Briefing Room as they set up a hasty setup there for the president who's going to be speaking to the American people and reporters in less than 10 minutes or so. This after coming -- after some critical talks with Republican and Democratic leadership over the issue of raising the debt ceiling.

Now, time for your "Choose The News" winner. Aggressive young women in Japan are driving a new fad in sushi made with raw meat. These women are called "carnivore girls." Kyung Lah reports.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT (voice-over): The proper slice and molded rice for the picture-perfect sushi. Except this isn't raw fish, it's raw meat. Horse meat, pork and chicken says Chef Kenskei Onishi (ph), all raw and uncooked. Gobbled down by eager customers packing Nifu Sushi (ph) restaurant. Nifu Sushi means "meat sushi." No fish allowed. And in an odd way, the battle between meat and fish parallels the Japanese battle of the sexes.

Iya Kanazawa (ph) goes raw three times a week here. "I'm a carnivore girl," she says proudly. A buzzword labeling Japan's young, aggressive women. "Carnivore Girls" call the shots in love. They're independent and opinionated. Raw meat eaters. A direct contrast to Japan's so- called "herbivore boys." Translated in Japanese, sex means relationship in flesh. So "herbivore boys" are less interested in sex. Born out of two decades of Japan's economic stagnation, traditional masculinity and career don't drive herbivores. For a country aging at the world's fastest rate, with one of the lowest birth rates, "herbivore boys" embody the nation's societal fears.

LAH (on camera): What is a "carnivore girl"?

LAH (voice-over): "Carnivore girls" are the reaction to "herbivore boys," says this group. "It's the upheaval of the gender," says this girl. Restaurant manager Hioraki Tota (ph), sensing a marketing opportunity, hit Twitter, talking up his new raw meat sushi bar.

LAH (on camera): You made this place trendy.

LAH (voice-over): "You could say that," he says. "We're riding off the buzz of the "carnivore girls." Half of his customers are women. The restaurant expanded to four locations and is now looking into franchising. LAH (on camera): Trends or not, since we're talking about the handling, the ingesting and the serving of raw meat, it begs the question, is this all safe? Well, Japan has some of the highest food safety standards in the world. And this restaurant says, in eight months it's been opened, it's not had a single reported case of food poisoning.

(voice-over): But there have been scandals -- four people died at a different restaurant chain two months ago after eating spoiled raw beef, prompting this sushi restaurant to take raw beef off its menus, sticking to raw horse meat, chicken and pork for now.

American Matt Heibel says he's still not worried about eating an entire meal of uncooked meat.

MATT HEIBEL, AMERICAN: There's odd things about Japan. Raw meat is only one of many. So, you just localize yourself, go native a bit.

LAH: And why not? Fellas, have you seen how many girls are in this joint?

Kyung Lah, CNN, Tokyo.

(END VIDEOTAPE)

MALVEAUX: CNN NEWSROOM continues right now with T.J. Holmes. He's in for Randi Kaye.

Hey, T.J.