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Hiring Slows, Unemployment Rises; NASA Launches Last Shuttle; Hiring Slows, Unemployment Rises; The Help Desk; Thousands Flood Tahrir Square
Aired July 08, 2011 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Thank you so much.
And of course we're going to have another look at that history.
Hello, everyone. I'm Fredricka Whitfield.
Let's get you up to speed right now.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: 10, 9, 8, 7, 6, 5 -- all three engines up and burning -- 2, 1, 0, and liftoff! The final liftoff of Atlantis on the shoulders of the space shuttle. America will continue the dream.
(END VIDEO CLIP)
WHITFIELD: All right. Just in case you missed it, or maybe you just need to see it again, NASA launches its 135th and final space shuttle mission just a half an hour ago. Atlantis soared into orbit one last spine-tingling time. Bad weather had threatened the launch.
The shuttle program is ending after 30 years, due to costs and the age of the orbiters.
Today's report on unemployment is much worse than anyone expected. The U.S. Labor Department says the economy added just 18,000 jobs in June. It takes 300,000 new jobs a month to put a significant dent in unemployment. June's meager showing pushed the jobless rate up just a notch to 9.2 percent.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: And today's job report confirms what most Americans already know. We still have a long way to go and a lot of work to do give people the security and opportunity that they deserve.
We've added more than two million new private sector jobs over the past 16 months, but the recession cost us more than eight million. And that means that we still have a big hole to fill.
(END VIDEO CLIP) WHITFIELD: Britain's phone-hacking scandal reached Prime Minister David Cameron's office today. Police arrested his one-time communications director, former "News of the World" editor Andy Coulson. Allegations the paper hacked the phones of celebrities and politicians cost Coulson his job at the "News of the World" back in 2007. Coulson quit Cameron's government in January as the scandal grew.
The prime minister took responsibility for hiring Coulson, and called for government investigation into the paper's conduct.
(BEGIN VIDEO CLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: This is a wake-up call. Over the decades, on the watch of both labor leaders and conservative leaders, politicians and the press have spent time courting support, not confronting the problems. Well, it's on my watch that the music has stopped.
(END VIDEO CLIP)
WHITFIELD: "News of the World" will fold after Sunday's edition. The tabloid is part of Rupert Murdoch's media empire which includes "The Wall Street Journal," "New York Post," and Fox News, right here in the U.S.
A shooting rampage in Michigan ends with seven people and the gunman dead. Grand Rapids police say Rodrick Dantzler opened fire at two different homes. Dantzler's daughter and former girlfriend are among the victims. In the end, police say he turned the gun on himself while negotiating to surrender.
And a reminder. U.S. combat operations in Iraq may be over, but danger is not. The military says two American troops have been killed in central Iraq. Fourteen Americans fell in June, the highest number since 2008. All U.S. forces are scheduled to leave Iraq by the end of this year.
Casey Anthony will get out of a Florida jail Sunday, July 17th, not days earlier, when it was to be, July 13th. Correction officers say they have re-figured the release date which is based on time served and time off for good behavior. Public anger over the not guilty verdicts in death of Anthony's daughter still simmers.
(BEGIN VIDEO CLIP)
JEAN CASAREZ, LEGAL CONTRIBUTOR, "IN SESSION": Any concern for her safety?
CHENEY MASON, DEFENSE ATTORNEY: Sure. Yes. Everybody around her knows you have to be concerned for her safety.
There's a lot of nuts out there that don't believe in the Constitution of the United States, don't believe the jury system. And all you have to do is go downstairs on the sidewalk and you'll see.
(END VIDEO CLIP)
WHITFIELD: The duke and duchess of Cambridge arriving in Los Angeles this evening. You know exactly who they are, Will and Kate. Britain's future king and queen land at LAX after nine days on the road in Canada. The royal couple addressing the part for the rodeo in Calgary on Thursday.
San Francisco police say the Picasso thief is behind bars today. Investigators say Mark Lugo had boxed up the sketch and was ready to ship it when he was tracked down. Surveillance video shows a man boldly walking out of an art gallery with the pencil drawing on Tuesday. The Picasso is worth $200,000.
All right. Let's now get back to jobs, or lack thereof. Hiring has slowed and the unemployment rate has risen unexpectedly.
The June jobs report shows the economy gained just 18,000 jobs last month. That prompted immediate reaction on Wall Street.
CNN's Christine Romans joins us now, live from New York.
So, Christine, what are we to make of all of this?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It's, as one economist described it, a big bucket of very cold water, quite frankly. It shows that the government is still shedding jobs because of state and local budget cuts. So you're losing government jobs. And the private sector is just not robustly creating jobs.
So, overall, a disappointing report all together.
I asked Austan Goolsbee, who is one of the president's top economic money men -- I asked him, you know, what this means, what we can do to start creating jobs in this country.
(BEGIN VIDEO CLIP)
AUSTAN GOOLSBEE, CHAIRMAN, WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS: Now, I view this number as a call to action that we should, in Washington, be doing everything we can on a bipartisan basis to get the growth rate back and to help facilitate the private sector standing up and leading the recovery. That's what has to happen. And there are a number of things that we can do right now that are teed up on the table in a bipartisan way, but I really view it as that call to action.
(END VIDEO CLIP)
ROMANS: So, in the meantime, while we wait for that bipartisan action, you've got a 9.2 percent unemployment rate. Austan Goolsbee and the president, also, earlier today, pointing out that we have created some two million private sector jobs over the past 15 months, and it's a very, very big hole that the economy's trying to climb out of.
You know, there's no real disagreement about that. But the issue here is, at this point in the recovery, should we be doing a little bit better? And for those of you at home who have been saying it doesn't feel like a recovery to me, these numbers simply reinforce that -- Fredricka.
WHITFIELD: Yes, and especially back-to-back poor jobs reports, June and May.
How do people look for signs of recovery that indeed the economy might be moving forward?
ROMANS: Well, I'll tell you a couple of places where the jobs market is creating positions.
That's in health care. You saw 14,000 more jobs created there. Mining, also you saw 8,000 jobs I think created there. Temporary services is mostly flat.
Where you're seeing also, leisure and hospitality, sort of hotels and restaurants. They added maybe 34,000 jobs in the month. That's where you're seeing some job creation.
But here's a bigger sort of political question and a question about the direction of the middle class in this country, Fredricka. And think of this. Business and professional services also saw some jobs growth there. And in that category, there are some jobs that are pretty good paying jobs.
But the top three categories overall for jobs growth over the next couple of years are cashier, waitress, and retail sales clerk, like at a big box store. Those are the places where we are forecast to create the most jobs.
The question is, can the United States middle class live on those earnings in a way that we have been accustomed to over the past 10, 20, 30 years? And what I think you're really seeing here is a real reexamination, Fredricka, of what we can afford in the country -- I mean, look at the debt debate that's happening now -- and where we're headed. So, clearly, it's a difficult report that underscores that.
WHITFIELD: All right. Christine Romans, thanks so much, from New York.
ROMANS: Sure.
WHITFIELD: Appreciate that.
OK. So we heard from President Obama reacting to the weak jobs report. He admits that having a long way to go is before him and the rest of the administration to get people and jobs and the security that they are looking for. Congressional leaders, well, they're reacting already as well.
CNN's Jim Acosta, part of "The Best Political Team on Television," is live from the Political Desk in Washington.
So, what are lawmakers saying? JIM ACOSTA, CNN CORRESPONDENT: Well, Fredricka, the reactions from Republicans here in Washington shot up faster than the space shuttle Atlantis. You could see the responses coming from the GOP presidential candidates, coming in almost as soon as the jobs report came in, from Mitt Romney, Tim Pawlenty, Jon Huntsman.
And over on Capitol Hill, the Speaker of the House, John Boehner, was asking a familiar question, a question he's been asking for years.
(BEGIN VIDEO CLIP)
REP. JOHN BOEHNER (R), SPEAKER OF THE HOUSE: After hearing this morning's jobs report, I'm sure the American people are still asking the question, where are the jobs? The stimulus spending binge, excessive government regulations, and our overwhelming debt continue to hold back job creators around our country. Tax hikes on families and job creators would only make things worse.
(END VIDEO CLIP)
ACOSTA: And, of course, Democrats will say to John Boehner, and they are saying to John Boehner this morning, that there are job creation proposals that Democrats say they have pending up on Capitol Hill that they would like to see passed. Of course, Republicans say the very same thing, that they have job creation proposal that are pending, if only the Democrats would come to the table.
And at the White House press briefing just a few moments ago, the press secretary, Jay Carney, over there said that one way to get jobs going is to pass some sort of agreement to raise the debt ceiling and to bring the debt under control. And of course we're all waiting here in Washington for both sides to do just that -- Fredricka.
WHITFIELD: Right, because aren't they all to meet one more time, at least one more time this weekend?
ACOSTA: That's right.
WHITFIELD: You wonder whether this jobs report and the tone of what's coming -- the tone from the White House versus the tone from Capitol Hill, is going to kind of reset the tone of these bipartisan talks.
ACOSTA: That's right. All of this is -- this jobs report really raises the stakes in this debt ceiling debate, Fredricka, because going into these talks this weekend, before the jobs report, well, you might have thought that perhaps the Democrats might have felt like they had the upper hand in some of these talks, and perhaps Republicans are going to go into these talks over the weekend feeling more emboldened. But, really, both sides have paints themselves into a corner when it comes to job creation in this country, Fredricka, because you have the Democrats, who would like to spend more government money in order to create jobs, but, of course, there are these debt talks under way, so both sides will say, well, we can't afford to do that. And Republicans would like to cut taxes, and Democrats will just charge right back, well, we can't do that. So, both sides are really in a fix here because they've been advocating from both of these entrenched positions for so long, and yet this debt ceiling debate is hanging over all of them. So, the question is, can you bring the debt under control and create jobs at the same time? Both sides are going to have to answer that question.
WHITFIELD: All right.
Jim Acosta, in Washington.
Thanks so much.
All right. Let's take a look at the rundown now of some of the stories that we're covering over the next hour.
First, the final mission of the space shuttle program is now under way. Our Suzanne Malveaux at the Kennedy Space Center with reaction to the final blastoff.
Then, the first African-American woman in space reflects on the end of this shuttle program.
Plus, after 168 years, Britain's "News of the World" comes to an end. Hear what the tabloid has meant to its British readers.
Also, a baseball fan falls to his death trying to catch a ball.
And then later, the shocking pictures of Yemen's president badly burned after an attack on his palace.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Ten, 9, 8, 7, 6, 5 -- all three engines up and burning -- 2, 1, 0, and liftoff! The final liftoff of Atlantis on the shoulders of the space shuttle.
(END VIDEO CLIP)
WHITFIELD: The space shuttle Atlantis is on its way to the International Space Station after a spectacular launch less than an hour ago.
Our Suzanne Malveaux and John Zarrella are joining me now from the Kennedy Space Center.
So, Suzanne and John, still breaking up over it, a lot of giggles there.
All right. It's one thing to watch this launch on television, but quite another to see it in person.
I remember covering that second John Glenn launch, and the excitement there is palpable whether you're there at the launch pad or whether you're at the beach. And I understand you've been tweeting about it all morning long, and giggling.
SUZANNE MALVEAUX, CNN ANCHOR: I've been tweeting all morning, Fred. Well, I was just so thrilled with this. It was really an awesome experience.
For John, he's covered many of these. This is just old hat for him. But, I mean, this was my first time, and it's the last one.
I was a guest of Charlie Bolden, who's the head of NASA. He had a group that was not far from here, about five miles from the launch site. And he was absolutely right, Fred.
I had a chance to talk to him this morning, and he says, "At first you see it. Right? You can see the launch. And then you hear it, all of the thunderous noise around. And then you can feel it."
And that's when I realized it's absolutely true. It is so different when you're here, because you feel it. Your whole body shakes and vibrates, that sense of excitement and exhilaration.
And the people I was with, some of them, John, these are, like, veteran astronauts, and they were still nervous. They were still very tense when they watched that, especially that moment when there was that technical glitch, that delay.
JOHN ZARRELLA, CNN CORRESPONDENT: Yes. Right.
MALVEAUX: And we were fortunate enough just to sit beside them and say, so what's going on? Is this going to happen or not? They're on their phones. They were just as nervous as we were.
What was it like for you?
ZARRELLA: Thirty-one seconds, and they had some arm that they weren't sure had actually retracted. And they had to get a visual confirmation before they could say, OK, we're cool, it's fine, we can go.
But we were all sitting here going, oh, no. I have seen that so many times over the years because it is such a complicated vehicle, and there are so many things that could go wrong.
And as you know, that's one of the reasons why the shuttle program is being phased out.
MALVEAUX: Right.
ZARRELLA: Too complicated, too costly, et cetera, et cetera. But, boy, what a shame --
(CROSSTALK)
MALVEAUX: And John, you talked to some folks this morning.
ZARRELLA: Oh, yes, absolutely. We had lots of folks. We had astronaut Cady Coleman with us this morning, up here. And, you know, I think what's fascinating is that right before the launch, we were sitting here, it's not going to go, it's not going to go -- the weather -- you know, we're all the naysayers. And then NASA gives the go ahead and the launch director says we're looking really good.
And Commander Christopher Ferguson had some really, really interesting words I want everybody to here before they lifted off.
(BEGIN VIDEO CLIP)
CHRISTOPHER FERGUSON, SPACE SHUTTLE ATLANTIS COMMANDER: The shuttle is always going to be a reflection of what a great nation can do when it dares to be bold and commits to follow-through.
We're not ending the journey today, Mike, we're completing a chapter of a journey that will never end. You and the thousands of the men and women who gave their hearts, souls and their lives to the cause of exploration have lived in history.
Let's light this fire one more time, Mike, and witness this great nation at its best. The crew of Atlantis is ready for launch.
(END VIDEO CLIP)
ZARRELLA: Ready for launch. And, of course, they did. A 12-day mission. Sunday morning, they'll dock with the International Space Station. And it's going to be pretty emotional, I think.
MALVEAUX: There were a lot of people who were emotional with Charlie Bolden. One of the people that I had a chance to talk -- we were in the same little group traveling together -- was Teddy Kennedy, Jr. and list daughter, Kiley. She was there.
And they both wanted to kind of avoid the cameras today, but he did make it clear. He said, "Look, I'm representing the Kennedy family. This is a really proud moment for us."
And I kept asking, "Bittersweet? Bittersweet?" Nobody wants to use that word because there is a sense of loss here as well. I mean, it is an emotional experience. It was for him, it was for Charlie as well.
ZARRELLA: And the one other major event that's going to take place, when the shuttle comes back down, on the 20th, if they just do the 12-day mission, and they land over here at the Kennedy Space Center, and Chris Ferguson, the commander, calls "Wheels stop," he told me -- he said he's bound and determined to be the last person off the shuttle. But beyond that, all of the workers who have made this possible --
MALVEAUX: Oh, absolutely.
ZARRELLA: -- thousands of them, whoever is here, they're going to be allowed to actually walk out on the runway. That's the plan right now --
MALVEAUX: Really?
ZARRELLA: -- to touch the vehicle, to be there, after everything is done. That's the plan right now. You know, that one time that everybody who has been so much a part of it can say good-bye.
MALVEAUX: And it's so emotional, and people want to touch it. They want to be a part of it.
ZARRELLA: Yes.
MALVEAUX: And it's been a part of their lives, a part of their livelihood.
I want to go to our Brooke Baldwin, who is there with some visitors at the visitor center.
And Brooke, you know, the gift shop closed down where we were, and people were in kind of a scramble, a panic, to get something to commemorate this very special moment. I imagine people are trying to snatch things up as quickly as possible, taking pictures.
What's it like from where you are?
BROOKE BALDWIN, CNN CORRESPONDENT: Yes. I have maybe gotten an e-mail or two from producers in the control room saying, "Hey, Brooke, can you get me some NASA T-shirts, please, while you're done there?"
It's been an amazing experience, Suzanne. I'm right there with you. It has been my first launch, and what a launch to be here.
I met a woman earlier. She was just -- you know, tears streaming down her face. She was here with her kids and her grandkids. And speaking of three generations, take a look to my right.
This is a family from Warren, Michigan. This is Wynn (ph), grandma. Mom's off to the side. All these different kids.
Wynn (ph), why was it important? This is your first time. Why now?
UNIDENTIFIED FEMALE: Because it's something I can never see again. You're going to make me cry.
BALDWIN: Oh, I'm sorry. But it's emotional for you. Why?
UNIDENTIFIED FEMALE: Because it was something that's never going to happen again, so they say. I don't know. But I've never seen it and I wanted to.
BALDWIN: And to be here and watch these little ones.
UNIDENTIFIED FEMALE: Yes. Seeing that this is something that they may never see again.
BALDWIN: Hey, little Parker (ph).
UNIDENTIFIED MALE: Hi.
BALDWIN: Hey, little man. Can you just talk to me and tell me what you saw just a couple of minutes ago.
UNIDENTIFIED MALE: Yes.
BALDWIN: What did you just see?
UNIDENTIFIED MALE: A space shuttle launch.
BALDWIN: What was the coolest part?
UNIDENTIFIED MALE: The one where the fire came out there, and even the big one came.
BALDWIN: I just love how children explain what this was like. It's just so simple, and it's almost poignant as well, just the fire and the smoke. And we all felt it sort of in our chest.
Take a look at these two guys. They came all the way from?
UNIDENTIFIED MALE: England.
BALDWIN: England. Whereabouts in England?
UNIDENTIFIED MALE: Yorkshire.
BALDWIN: Yorkshire. That's a bit of a plane ride over here to come see this.
Why take the effort?
UNIDENTIFIED MALE: Well, personally, I came here about 13 years ago, and Endeavour was on the pad ready to go. It actually took off three days after we left, so unfortunately I didn't see that. But I wanted to see one before it was the last one, basically.
So it's been absolutely incredible. I'm pretty much speechless.
BALDWIN: Speechless.
You as well?
UNIDENTIFIED MALE: Yes. A fantastic experience. We had a great view. Well, just seeing the noise afterwards was just unbelievable.
BALDWIN: Seeing the noise, feeling the noise.
UNIDENTIFIED MALE: If we could see it one more time in our lives --
BALDWIN: One more time would be nice.
I think, Suzanne, John -- I know John has seen several of theses. But Suzanne, I'll come find you shortly and we'll share and swap stories. Amazing.
MALVEAUX: Oh, yes, Brooke. Absolutely.
You know, there was an interesting story. Kiley Kennedy told us that there was guy from New Zealand that she met, came all the way from New Zealand to see this final launch. And even then we had no idea what the weather was going to be like.
But I want to let our viewers know that, John Zarrella, this guy has covered 75, 80 launches.
ZARRELLA: That dates me.
MALVEAUX: Do you have a job? What are you going to do tomorrow, John? What's your backup plan?
ZARRELLA: I've been telling people that I'm just glad that the space shuttle was retiring before I'm retiring. I don't know what the plan is, but the shuttle's retiring before I am.
MALVEAUX: We're going to get you another assignment.
John's going to do something for us here.
But it's an amazing, amazing time. Historic. And you've done an incredible job.
ZARRELLA: And tonight at 8:00 and 10:00, "Beyond Atlantis." I'm putting in a shameless plug for the special that we did, the one-hour special on the end of the space shuttle program, 8:00 and 10:00.
MALVEAUX: All right. Great. We're going to keep an eye out for that. All right. Thanks, John. Appreciate it.
Hey, Fred.
WHITFIELD: All right. Well, John's backup plan is that he's so versatile, he can do anything. And we've seen that over the years.
(LAUGHTER)
WHITFIELD: All right. John, Suzanne, thanks so much. Appreciate it. We'll check back with you.
All right. Meantime, the investigation intensifies. An arrest is made in Britain's phone-hacking scandal that targeted murder victims, terrorism victims, and the grieving families of troops killed at war. A live report from London.
(COMMERCIAL BREAK)
WHITFIELD: All right. Some of the stories that our affiliates are covering around the country now.
A man attending a Texas Rangers game with his son tried to catch a ball thrown into the stands and then fell head first over the railing. He died at the hospital. Another fan tried to grab his shirt, but simply couldn't hold on. A similar incident happened last year at a Rangers game, but the man survived.
Yellowstone Park officials say they have no plans to kill a grizzly that attacked and killed a man. His wife survived by playing dead. Park officials say the bear was never involved in other incidents and was probably trying to protect its cubs when it was surprised by the hikers.
And in Seattle, this woman says she believes she was racially targeted after being pulled out of an airport security line for a pat- down of her hair. She was wearing it up at the time.
(BEGIN VIDEO CLIP)
LAURA ADIELE, HAIR CHECKED AT AIRPORT SECURITY: There were many other females around me who were not black who were not having their hair searched, who had curly -- I mean, I distinctly remember looking at a woman with her hair in a ponytail, very curly, big hair, thinking, why isn't she being accosted as well?
(END VIDEO CLIP)
WHITFIELD: A spectacular career inspired by the TV series "Star Trek." We'll find out what it's like to fly on a space shuttle from the first African-American woman in space.
(COMMERCIAL BREAK)
WHITFIELD: Heads are starting to roll in Britain's phone-hacking scandal. Police today arrested a former editor of "News of the World." That's the tabloid newspaper accused of breaking into people's voicemail accounts and bribing police. The newspaper is owned by media magnate Rupert Murdoch, who also owns Fox News and "The Wall Street Journal."
CNN Senior International Correspondent Dan Rivers joins me live now from London.
So, Dan, the former editor who is now under arrest also happens to be a former press secretary for the British prime minister, David Cameron. So is this scandal expected to be politically damaging for the prime minister?
RIVERS: Well, it certainly acutely embarrassing for David Cameron, and he kind of admitted in a press conference today that it was his decision and his decision alone to employ Andy Colson, a decision which has now sort of come back to haunt him with a vengeance.
(BEGIN VIDEO CLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: This is a wake-up call. Over the decades, on the watch of both Labour leaders and Conservative leaders, politicians and the press have spent time courting support, not confronting the problems. Well, it's on my watch that the music has stopped. And I'm saying, loud and clear, that things have got to change.
(END VIDEO CLIP)
RIVERS: So talking there about the cozy relationship that has existed between both parties really, all the parties, and sort of major news groups here, notably News International, which has four major titles in the UK.
He didn't quite go as far as saying that Rebecca Brooks, the chief executive of News International, should step down immediately. What he said was if he had been offered her resignation, he would have accepted it, almost the same thing. But at the moment she remains in her post.
She's in the building behind me now having a meeting of staff, which she has been this afternoon. She appears to be continuing in her role as chief executive of the parent company. Meanwhile, the 200 staff of the News of the World are preparing the final edition after 168 years, which will go out Sunday with no advertising in.
There's also been a significant development this afternoon in the last hour. The big motor company Renault has pulled out of advertising in any News International paper. Not just News of the World but any of the papers. Now, that may be the beginning of a further set of damaging sort of boycotts by advertisers for all of the titles in the News International stable.
WHITFIELD: All right. That's extraordinary. Dan Rivers, thanks so much. Appreciate that.
We're going to talk some more about this. The "News of the World" has broken legitimate stories in its 168 years in operation, but often, the paper headlined sensational dribble as well. Let's bring in our Howard Kurtz on Skype. He hosts CNN's "RELIABLE SOURCES" and Washington bureau chief for "The Daily Beast."
So, Howard, does this scandal infer that other organizations under News Corp., from "The New York Post" to Fox New to the "Wall Street Journal" here in the States, just may at some point be accused of doing the same thing?
HOWARD KURTZ, CNN HOST, RELIABALE SOURCES: Well, I don't think it's fair to take the obvious, outrageous tactics that "News of the World" used and you'll remember that, you know, lying and having people and being impersonated, the famous sheikh sting that was carried out against Fergie. This is all standard procedure at Rupert Murdoch's London tabloid.
But since Fox News, the "Wall Street Journal," "The Times" of London, also Murdoch properties with very different cultures operate independently, I don't think it's fair to tarnish them. Although the Murdoch brand certainly tarnished by this scandal.
WHITFIELD: So then why would Rupert Murdoch be so quick to let this newspaper fold?
KURTZ: Well, Fredricka, my reporting suggests that he had become such a liability that he may be trying to protect some of his top executives. For example, there's one named Rebecca Brooks, who's the chief executive of Murdoch's News International based in London. She had been editor of "News of the World" during some of these crucial years when the phone hacking took place.
And I think this was a form of damage control, a desperate move, to be sure by Murdoch to say the paper's so tarnished and is the focus of so much outrage in Britain over the targeting of people who are terror victims, and not just celebrities that why, not get rid of it?
And here's the last point, and that is Murdoch is trying very hard to salvage a major media deal he wants to do in Britain, taking over British Sky Broadcasting. That's $12 billion deal. And he wants to make this "News of the World" scandal just go away.
WHITFIELD: And so he feels like perhaps the conventional wisdom is he feels like he still stands a good chance of that $12 billion acquisition of Sky Broadcasting by letting this controversial paper go?
KURTZ: Yes, which unfortunately will cost the jobs of 200 employees at "News of the World." some of whom engaged in some of these questionable tactics, shall I say, some of them are just hard- working tabloid journalists.
But you know, the only way the British government can stop that acquisition of British Sky Broadcasting is by showing that Murdoch has too much media power, too much influence to be concentrated in the hands of News Corp. It's not supposed to get into any of these ethical and moral questions of journalism. And so I think the feeling on Murdoch's part, the sooner "News of the World" becomes history, and it will disappear after Sunday, the easier it will be for him and his company to put the scandal behind him.
I'm not so sure. I think it will resonate very strongly, with all of these investigations. Even prime minister Cameron calling now for a probe of the relationship between politicians and "News of the World" and other news organizations. I don't think the story's going to go away. Murdoch obviously trying to at least minimize the fallout.
WHITFIELD: All right. Fascinating stuff. I know you'll be talking about it some more on "RELIABLE SOURCES" this weekend. Thanks so much. We'll be watching. Howard Kurtz, appreciate it.
All right, meantime, a spectacular career inspired by the TV series "Star Trek." we'll find out what it's like to fly in a space shuttle from the first African-American woman in space.
(COMMERCIAL BREAK)
WHITFIELD: So have you ever wondered what it would be like to be on board a space shuttle at moment of liftoff? Suzanne Malveaux has someone who knows exactly what that's like and is going to explain. Suzanne?
SUZANNE MALVEAUX, CNN CORRESPONDENT: Fred, we have an amazing guest here. Dr. Mae Jemison was on Endeavour's shuttle. That was back in 1992, and she's joining us here live to witness -- you witnessed Atlantis in the last shuttle take-off there. Most of us we don't know, we have no clue what it's like, what you're experiencing when you're in that shuttle and is about to take off. What goes through your head, through your heart at that moment when you're about to lift-off?
DR. MAE JEMISON, FIRST AFRICAN-AMERICAN WOMAN IN SPACE: I think there are a number of different things. One thing is, wow, I'm really excited. It's going to today right? Which is one of the things they were thinking about. You have a bit of butterflies, because there's the excitement, the anxiety of how the asset (ph) will go.
And I think the other piece is, that you're focused on your job. So there's, you know, all of these other parts, little bit of anxiety, I want it to go, I have butterflies, but you're focused on your job. So, it's really a mixture of feelings.
MALVEUAX: What was it like for you today to watch Atlantis? Did you have some feelings, mixed emotions about this being the last launch? And do you have some anxiety where the space program goes now?
JEMISON: Well, I think it's a bittersweet feeling, and I've been looking at in the way of you had a friend or a good car or something that did a really good job. But now it's time to move on.
So, I think some of the anxiety that's around the space program may be a little bit misplaced in the sense that we still have humans in space. We, as a U.S., no longer have the vehicle that's taking them up in space, but we're still very much part of the major part of the equation in space exploration.
But we're actually working on other vehicles. We're working on vehicles that can take us outside of low earth orbit. So it's bittersweet, sort of like watching a friend, saying good-bye to the friend but then having new horizons to meet. And that's where I look at it.
MALVEUAX: Now it's kind of a fun story to tell. I love this story -
JEMISON: Uh-oh.
MALVEAUX: -- that you were inspired by Star Trek when you found that you really wanted to get into space and space work and become an astronaut yourself. You made history as the first African-American woman in space.
What do young people hold on to now if they say hey, I want to do that, too, but they don't have the opportunities, they don't see the vision? JEMISON: Well, to clean the story up, I always wanted to go in space. Star Trek was a confirmation that it could happen. And Michelle Nichols has done an incredible job helping people get involved in space exploration.
I think the issue is that young people are always interested in doing better and reaching further. The issue surrounds us as adults being able to give them that opportunity.
MALVEUAX: Tell us about that program. You are working with kids now to actually help them get involved in science.
JEMISON: Well, students, we do programs called the Earth We Share. It's not my day job, it's my for love of job. It's a nonprofit called the Dorothy Jemison Foundation for Excellence. We actively put together programs to help students build critical thinking and problem solving skills to get comfortable with science.
We work with middle school students, which is that difficult age where students start to say, oh, does this fit with me. And we are particularly interested in girls and underrepresented minorities. In fact, we're going to be starting a program just next week in Los Angeles with the Unified School District in Compton that looks at that the kind of issue.
But the problem, in terms of space exploration, how do we go further? We go further by as adults making a commitment to continue exploration, to not to say well, oh well, we're done. To move further.
MALVEUAX: OK. All right. You've been a role model to so many. I'm sure a lot of people will follow in your path as well. Thank you very much.
JEMISON: You're very welcome.
MALVEAUX: Appreciate it, Mae.
Hey, Fred. Back to you.
WHITFIELD: Thanks so much. She's an inspiration on so many levels. Appreciate that.
All right. If you started a job recently, you're one of the lucky few. New unemployment numbers are out today, and they don't look good. I'll talk to a Georgia Tech economics professor.
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WHITFIELD: So, it's worse than anyone expected. Talking about jobs. The U.S. Labor Department says the economy added only 18,000 jobs in June, and that's pushed the unemployment rate up to 9.2 percent.
Danny Boston, professor of economics at Georgia Tech, joins me here in Atlanta right now.
So interesting, you know, Danny, professor, the White House, the president said, you know what, all the more reason to tackle this debt ceiling now. Republicans were quick to come out and say all the more reason why we shouldn't raise taxes. Who's right?
DANNY BOSTON, ECONOMIC PROFESSOR, GEORGIA TECH: Well, you know, neither side has really gotten to the heart of the problem because in order to tackle the problem that we're in now, you have to really walk on three legs, right? You have to address issues that will stimulate growth because that brings in new revenue, you have to cut the deficit and do it in a strategic way, and you also have to raise taxes. And so all of those things are required in order to --
WHITFIELD: That's at the core of the argument, how you raise revenue. One might say raising taxes as another and cutting spending --
BOSTON: Right.
WHITFIELD: You know, that is at the core here.
BOSTON: Right. Right. Have to do all three of them though. I mean all three -- we cannot get out of the problem by thinking that we can put all of our eggs into one basket. That it has to be a strategy that is multifaceted and in a reasoned strategy, it has to be strategic, because we have to grow. If we cut too much, then we'll ultimately end up bringing in less revenue. And so we can't do it alone just by cutting.
WHITFIELD: Are you seeing on the horizon, without some sort of compromise quickly, a double-dip recession?
BOSTON: Well, I don't see a double dip, all right, and -- but I do see a lot of -- it's a roller coaster economy. But if you think of a recovery as having really two stages, the first stage really is a fast growth stage where we typically will recover all of the jobs that we lost during the recession. And then secondly it settles down, grows normally, kind of meanders along. So that's where we're now, we're meandering but we didn't recover jobs when we were growing.
WHITFIELD: So private sector jobs versus government or public sector jobs, government saw a real hit, well as private sector has seen a little bit of a bump. People used to go into government jobs thinking this is the stability, but state economies everywhere are doing so poorly, it means fewer jobs. Many more jobs being cut.
BOSTON: Right. Absolutely. Absolutely.
WHITFIELD: So where can you count on the growth from here on out?
BOSTON: Well, the growth, it has to come -- there are three important sectors that we have to look at. The corporate sector. And that sector, right now, is having record earnings and they're sitting on record piles of cash. We have to get them to spend that cash. They're not doing that. They're uncertain about the future. Small businesses have to be a part of the mix because that's where the jobs come from. Businesses from zero to 50 employees and new start-ups. And then we have to do something about the housing sector. Trying to recover jobs without a healthy housing sector's like running a train down the track with a caboose with its brakes done. We just can't do it. So we (ph) have to do that.
WHITFIELD: Yes, you have to feel for a lot of the people in construction right now and the housing market, they're getting hit very hard.
BOSTON: Right. Absolutely. Absolutely.
WHITFIELD: Professor Danny Boston, thanks so much.
BOSTON: My pleasure.
WHITFIELD: Good to see you. Of Georgia Tech.
BOSTON: OK. Thank you.
WHITFIELD: Thanks again.
All right, protesters are flooding Cairo's Tahrir Square again. Having forced President Mubarak from power, they're still demanding reforms promised by the new government. We'll take you there, live.
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POPPY HARLOW, CNNMONEY.COM: Time now for "The Help Desk," where we get answers to your financial questions. Joining me this hour, Jack Otter, the executive editor at cbsmoneywatch.com, and Ryan Mack, the president of Optimum Capital Management.
Thanks for being here, guys. Appreciate it.
Some good questions. Let me read the first one. This comes from Sandra in Virginia. Sandra writes, "I am a widow and have been taking money out of my husband's IRAs. I have enough to last about four years and the taxes are hurting me. What can I do?"
Jack, what would you say to her?
JACK OTTER, EXECUTIVE EDITOR, CBSMONEYWATCH.COM: Well, she's in a tough situation and a lot of people are in this situation. The only good news here is that she's got four years of runway to figure things out. What I don't want to see her do is just keep on exhausting them knowing that the money's going to run out at that time period.
So, number one, she should sit down with a financial adviser and just figure out a plan. So is she taking her late husband's Social Security benefits. She has access to that, whichever is higher, hers or his. She also needs to make sure that her tax planning is right. If she's got income coming in, plus Social Security, then, yes, her taxes are going to be higher.
HARLOW: Right.
OTTER: If her only income is what she's taking out of the IRA and Social Security, they shouldn't be too high, but maybe she can delay taking those withdrawals from the IRA or something just to keep her tax bill down.
HARLOW: It's so important to know the rules. The tax rules can save you so much money or cost you so much money. An expert's going to know what the answer is to that one.
OTTER: And if she has equity in a home, maybe a reverse mortgage if she's really hurting for money.
HARLOW: Sure.
OTTER: And maybe she needs to annuitize the IRA while doing the reverse mortgage, but she's got to plan now, not wait four years and suddenly be out of money.
HARLOW: Of course planning is always better. Thank you.
Ryan, interesting question for you. This comes from Terry in Nevada. Terry says, "I bought a house in 2006," of course height of the market, "for $535,000. It is now worth around $340,000. I have around $200,000 in the bank. Should I wait until the housing market improves or should I take money out of the bank to refinance my loan?"
This is a good question because rates are so low right now.
RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Yes, well, first of all, congratulations for having that much liquidity, first of all. Second of all, there are two programs that the government has in order to assist individuals in order to -- for those individual who have underwater programs. One is HARP, the Home Affordability and Responsibility Program -- Refinance Program, rather. And then she's actually not eligible for that because the mortgage is actually over 125 percent of the appraisal value.
Then they have FMAP (ph), which is the Home Modification and Refinance Program. So -- but she's not eligible for that because she's actually been essentially on time for payments, so she's not in foreclosure.
Look, she's got $200,000. Take that -- take -- allocate nine or 12 month of living expenses, put it in an emergency fun, keep yourself liquid, and then take the additional amount and diversify your portfolio. I mean she's got a lot of that value in her investments in her home right now.
HARLOW: So don't refi right now.
MACK: No, actually not -- not right now. I mean if she's got an astronomical rate back in 2006, I'd imagine that the rate's probably not too much more -- too much lower than what it is right now.
HARLOW: Right. MACK: But if it -- if she can get maybe an additional one or two points, she might be able to. But the biggest thing is diversify your portfolio, put some money into some assets that might be able to appreciate at a faster rate than the home now.
HARLOW: Got it, guys. Thanks so much. Good advice. And if you have a question that you want answered, just send us an e-mail any time to cnnhelpdesk@cnn.com.
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WHITFIELD: His appearance shocked everyone. Yemen's president went on television in Saudi Arabia to try to raise the morale of his supporters back home. Well, he was badly burned in a bombing last month by those who were trying to force him from power. President Ali Abdullah Saleh had bandaged hands and he wore makeup to cover up the burns on his face. You see him before. Take a look. And then right now. Those are the images right now that you're looking at. Saleh fled to Saudi Arabia for medical care. We don't have those images of the before. However, he did reach out to his opponents. He said that he will not surrender power, despite his appearances.
All right, recent history is repeating itself in Egypt. Five months after protesters drove President Hosni Mubarak from power, they are back on the streets and they're demanding promised reforms. CNN's Fred Pleitgen in overlooking historic Tahrir Square in Cairo.
So what are the protesters saying now?
FREDERIK PLEITGEN, CNN CORRESPONDENT: Well, there's tens of thousands out here, Fredricka. And, of course, this is a very important key, strategic ally for the U.S. in this region. And basically they're saying that they don't believe that enough has changed since Hosni Mubarak seeded power about five months ago. They say government corruption still continues. They say government officials who were part of Mubarak's regime are not being put on trial. The economy is not doing well. There's high unemployment. So there's a whole array of issues that's driving these ten thousands of people on the streets.
I want you to listen in to what some younger Egyptian had to say to me earlier today when I talked to them.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Nothing changed. Nothing. Just the face and the name (ph). Mubarak (INAUDIBLE).
UNIDENTIFIED FEMALE: Yes, if we -- we are saying there's good intentions. (INAUDIBLE) they are slowing. Like this -- they're slowing. It tells me they are like -- they are not going to do anything or they're just -- we are wasting time.
UNIDENTIFIED MALE: Our army (INAUDIBLE) protect our own revolution, he's protecting himself. So protect all (INAUDIBLE) and old guys (ph). Plus Mubarak and his (INAUDIBLE) ministries. (END VIDEO CLIP)
PLEITGEN: Now, keep in mind, Fredricka, that right now this country is being governed by a military council. A lot of the people who are on that council were very, very close to Hosni Mubarak and to his regime. And so many people here say that this -- that the reforms that are being instigated are not deep enough and don't go far enough after Hosni Mubarak was in power.
And keep in mind that one of the things that President Obama said in his latest speech to the Muslim world, he said people in countries like Egypt specifically have to start feeling the dividend of democracy, the benefits of democracy. And many people here say they're not feeling that at all at this point.
Fredricka.
WHITFIELD: All right, Fred Pleitgen, thank so much, from Cairo. Appreciate that.
I'm Fredricka Whitfield. CNN NEWSROOM continues right now with T.J. Holmes, in for Randi Kaye.
T.J.
T.J. HOLMES, CNN ANCHOR: Hey there, Fredricka.
WHITFIELD: Hello. Almost like the weekend again.
HOLMES: Just like the weekend. Good to see you. And I'll maybe see you this weekend?
WHITFIELD: Well, I'll be here.
HOLMES: Yes, I might not be, Fredricka.
WHITFIELD: Yes, that's what I hear. So --
HOLMES: All right.
WHITFIELD: You know, this is like the weekend, but then it's not going to be like this weekend.
HOLMES: I'm glad we got our moment at least, Fredricka. Thank you so much.
WHITFIELD: OK. There we go. We had our fill. I'm going.
HOLMES: I will see you here soon, Fredricka. Thanks so much.
