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Bombers Strike Mumbai; Jurors Disgusted By Casey; Bernanke's Warning On Debt Crisis; U.S. Airport Security; Women's World Cup Soccer; Murdoch Hacking Scandal; Interview with Rep. Ron Paul; Netflix Introduces Price Hikes; Karzai's Emotional Burial for Slain Brother; Remembering Betty Ford; U.S. Women's Team Advances to Finals in World Cup

Aired July 13, 2011 - 12:59   ET

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

RANDI KAYE, CNN ANCHOR: We begin this hour with a triple bombing in a city of 20 million. Officials in Mumbai, India, say at least 20 people are dead and more than 100 hurt in explosions that rocked three busy areas of India's financial capital just minutes apart. A witness says the sound was absolutely deafening and he feared the panic would cause a stampede. India's home minister is appealing for calm in a city that still bears the scars of a terrorist rampage from 2008. That assault lasted days and killed more than 160. At this hour, Mumbai, along with New Delhi and Kolkata, are all under high alert. And CNN's Mallika Kapur is on the phone with me now with the very latest.

Mallika, tell us exactly where you are and also what happened there?

MALLIKA KAPUR, CNN INTERNATIONAL CORRESPONDENT: Sure. I am in an area -- an area in South Mamaku, opera house, and this is where one of the explosions took place. I am standing right there at this moment, I just got here a few moments ago. It is normally a very, very crowded area in Mumbai, it's also the jewelry district in Mumbai, it's popularly known as the diamond district.

This area is made up of lots of narrow lanes and bi-lanes, narrow alley ways, and it's usually a very, very, very crowded and busy area, especially at rush hour when you have hundreds and thousands of traders who leave this area. And at the scene right now, there are lots of police personnel over here, lots of journalists, and curious on lookers.

The police are slowly trying to clear the area and get everyone away. We have seen some shattered glass on the ground. I'm seeing two motor bikes and this car, covered with plastic sheets, the police have covered these at the moment. And a few of local monasteries are addressing - the public addressing the journalists at the moment.

KAYE: Can you walk us through -- can you walk us through the --

KAPUR: At the moment, it is treated for a chaotic scene as people come to grips with what happened here in Mumbai, at the location of one of the Mumbazid (ph) land -- Randi.

KAYE: Can you walk us through the targeted areas and give us just a brief idea of why those areas are so significant?

KAPUR: Sure. All three areas are really crowded, congested areas. Let me tell you about the first area in the north which is the area of Sadr. It is very close to an important railway station. Remember, Mumbai is a city that defends on its workforce. You have millions of people who commute into the city on local trains every single morning. And they go back on the local trains every evening at 7:00 p.m. which is rush hour. And that is an area which has a very important railway junction, which is why it's an extremely, extremely crowded area and a very important area for commuters.

That's one of the areas, the second is Gizeri (ph) Bizarou, Bizarou meat market, and again, it's in part of old Mumbai, it's very crowded, lots of shops there, it's a commercial area, but a couple of residents there as well. (Inaudible) shops, (meat shops), jewelry shops. And the third area is the diamond district where I am right now. Again, as the man suggests (ph) that the jewelry has lots of tiny, very cramped offices, narrow roads streaming with people. All three areas streaming with people.

KAYE: And as we continue to look at the scene there, can you tell us, has anybody claimed responsibility?

KAPUR: Randi, I can barely hear you, it's loud in here. But I think you asked me if anybody has claimed responsibility. No one has claimed responsibility yet. We have heard officials -- the police commissioner who might (ph) come out and speak, (inaudible). They've been asked these questions, who is responsible, and they said, well, you know, we're not going to talk about that now.

Our priority is really just to make sure that the Mumbaikas are safe, is to get the wounded people to a hospital, and we're going to come to this a little later -- we're going to address the questions of who had done it later, but the police commissioner has said repeatedly on the local television, whoever has done it will be brought to justice.

KAYE: All right. Mallika Kapur, appreciate your reporting for us there in Mumbai. Thank you very much.

Our "Sound Effect" is a new and unsettling glimpse inside the jury room in the Casey Anthony trial. As you probably know, Anthony was acquitted of murdering her two-year-old daughter, Caylee, who vanished in June of 2008, but wasn't reported missing for a month. Her mother spent those 31 days bar hopping and hanging out with a boyfriend, and in the interview with "Fox News", the jury foreman said that behavior troubled the jury greatly.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE, ANTHONY JURY FOREMAN: Well, it disgusted us. We're all very disgusted with that, between June 16th when it happened to the time that it -- and that's what makes this hard. That's what makes this -- it's what made it very hard for us. It's something that, you know, I wish, because of that, and seeing in that, it would be -- we wish there was something else we could look -- that would be more -- that would be a felony. Something where, you know, and we don't have the power to do this, we don't have the ability to put the laws in place for this, but where something where if you do not report a child missing, then it's going to be a felony, and for every hour or day whatever goes, it gets worst and worst, because her actions were disgusting.

(END VIDEO CLIP)

KAYE: The foreman says jurors were stunned when the prosecution rested, hoping and expecting there would be more incriminating evidence. The jury did find Casey Anthony guilty of lying to investigators, but she's still due to leave jail a free woman on Sunday.

Checking some other "Top Stories" that we're following along with you. A warning from fed chairman, Ben Bernanke today, if Congress fails to raise the debt ceiling by the August 2nd deadline, the result could be a major financial crisis. Bernanke's grim prediction was part of his twice a year economic report to Congress on the economy. Bernanke said the central bank would supply more stimulus if needed. He said the fed was prepared to raise interest rates if inflation becomes a major issue. Wall Street was obviously pleased by what he said, with stocks jumping over 150 points in the early-morning trading.

Heads up if you fly. The nation's airports have suffered more than 25 security breaches since 2001. That's an average of a little more than five security breaches a year at each of the 457 commercial airports. The figures from the transportation security administration which were provided to a Congressional committee. Breaches included everything from people accidentally leaving a bag at a checkpoint conveyor belt, to those who purposefully evaded security. TSA says the numbers are misleading, they say they represent just a small fraction of one percent of the 5.5 billion people screened since the 9/11 attacks.

In Germany right now, it's looking good for the USA women's soccer team, they lead France one, zip in their World Cup semi-final game. A victory would move them one step closer to winning their third world cup, and first since 1999. Today game follows Sunday's dramatic come-from-behind victory over Brazil, who could forget that one, right? Today's second semi-final picks (ph) Sweden against Japan, final set for Sunday.

Britain's hacking scandal forces Rupert Murdoch to make a stunning move, we're live in London in just two minutes.

(COMMERCIAL BREAK)

KAYE: In our "CNN In Depth" we're digging deeper into the hacking scandal that has unleashed a fire storm for media mogul, Rupert Murdoch. It created a spectacle of the British media. It's police force and even Prime Minister David Cameron. Under pressure by the British parliament, Murdoch's News Corp. announced today that it is dropping its bid to take over British satellite BSkyB today. Murdoch's decision follows scathing allegations of illegal eavesdropping by a number of his journalists. But the fallout threatens to reach far beyond Murdoch's media empire. Now, U.S. lawmakers, including two senators, are pushing for an investigation here at home to find out if Murdoch's news corp. broke U.S. law by bribing foreign officials.

Let's go straight to our CNN Senior International Correspondent Dan Rivers, who's been tracking the latest developments on this very closely. He joins me now from Westminster in London. Dan, British Sky Broadcasting, or BSkyB as it's called, would've been Murdoch's biggest acquisition yet. The fact that he withdrew his bid, what is this signal?

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: It's a massive climb down for Rupert Murdoch, and he wanted that broadcast desperately, and now he's think -- I think he had, you know, to face the reality. All the political parties here were about to vote against him having that takeover. It wouldn't have been legally binding, but it would've been a big slap in the face.

Just before that debate in the building behind me was about to get under way, News Corp. itself announced that they were holding their hands up and saying, look, we're not going to go ahead with this. So, an amazing U-turn from Rupert Murdoch in the face of unprecedented opposition to that takeover which has really only been given voice in the last few days.

KAYE: And any reaction, Dan, from the prime minister or from parliament on this?

RIVERS: Yes, it's being welcoming by the prime minister, the leader of the opposition at Mileband. They said it's a victory for people up and down the land. I think they are all relieved that -- for the minute anyway, that they don't have to make that decision in government, because that was going to be a very awkward moment when they had to decide one way or the other if that could be approved.

Now that's been taken off the table, so they aren't going to worry about that. The story isn't over, though. I mean, the police investigation continues, there may be more arrests, there may be more fallout, there may be more allegations, and it's a global story now. There's talk about, you know, looking at whether they hacked into victims of 9/11 in the U.S., and threats from a U.S. Senator, Jay Rockefeller as well, so this isn't just confined to the U.K. now.

KAYE: Yes, I also want to ask you about -- I mean, the whole reason that this -- that this broke, really, is because of the voice mail that was hacked, that voice mail that belonged to that 13-year- old girl, Milly Dowler. Her family met with the prime minister today, their lawyer was there as well, he spoke publicly after the meeting. I want to play what he said and then I want to ask you something about that.

(BEGIN VIDEO CLIP) MARK LEWIS, DOWLER FAMILY ATTORNEY: On behalf of Milly, and behalf of all the other (inaudible) victims of unlawful activity of the press, there will now be a full public inquiry for the public, and not a political inquiry for the politicians.

(END VIDEO CLIP)

KAYE: And Dan, what more can you tell us, if anything, about this meeting with the prime minister and Milly's family and the lawyer?

RIVERS: Well, I think it sounds like it went fairly well. They've been meeting with the deputy prime minister and the leader of the opposition as well in the past few days. I think their whole point was they wanted to make sure what happened to their daughter will never happen again, and therefore, they are very much behind this public inquiry, which is going to go ahead later this year.

And I think they were just frankly flabbergasted that anybody could have done this, and just, you know, really, really desperate to insure that no one would ever consider doing anything like this again, which now seems to be the case. It caused a massive uproar here, and it's caused this story to explode here in the U.K., and now across the U.S. as well.

KAYE: And is there any late word yet on whether or not Rupert Murdoch on his son and some of their highest executives who have been called to answer questions there, will they show up when the time comes?

RIVERS: Well, they have been invited to appear before this committee, next Tuesday, of parliamentarians, whether they turn up or not is anyone's guess. They don't have to turn up because they are not British citizens, but their chief executive, Rebecca Brooks, does have to turn up, she's also been asked to come along. She has to turn up or risks basically being arrested. So, one would imagine it's going to be fairly embarrassing if there are three seats there and one of them is filled.

KAYE: All right, Dan River for us in London. Dan, thank you very much, Dan.

Well, Ron Paul has made two big career decisions lately. One is to run for president in 2012, the other he will talk about live right after this break.

(COMMERCIAL BREAK)

KAYE: Welcome back.

When Ron Paul was first elected to Congress, Jimmy Carter was president, inflation was 11 percent and the Cold War was in full swing. Times have changed. But Paul has been a steadfast champion of smaller government and individual freedoms. And his 2008 run for president inspired a movement. You know it today as the Tea Party. Ron Paul announced this week that he won't run for re-election from the fourteenth district of Texas, instead devoting his energies to another run for president. Congressman Paul joins me from Capitol Hill to talk about that decision and, of course, his very colorful career.

Congressman, happy to have you on the show today. I want to ask you first, though, why give up your House job?

REP. RON PAUL (R), TEXAS: Thank you. Well, I didn't want to run two campaigns at one time. You know, I've done it before. It was criticized. I think the criticism is justified. And I think I should concentrate on one campaign and that's what I'm going to do. And I thought it was time to leave the Congress anyway. And besides, I don't think it's legal under the Constitution to be the president and also to be a member of Congress.

KAYE: I'm sure you're well aware of this little crisis that's brewing in Washington these days known as the debt crisis.

PAUL: Right.

KAYE: What is your solution here, do you think?

PAUL: Well, there's no easy solution, because it took them about 30 or 40 years to get into this mess. The solution is, we have to change our whole attitude about what the role of government ought to be. And in the last 100 years, we've drifted from the original intent of the Constitution where the government was to be limited and was there to protect our liberties.

So we have a foreign policy that needs dramatically changed. We can't be the policemen of the world. We shouldn't have a government that's dealing with our personal liberties and dealing and treating us the way they do at airports. We should have a different monetary system. And we certainly shouldn't go into deficit. We shouldn't be doing central economic planning and willing to spend all this money that we don't have. So it's a major change that we need. But the major change is coming because the country technically is in bankruptcy.

KAYE: And what is your answer, though, on the debt ceiling? Do you think it should be raised?

PAUL: No, absolutely not. I have not voted for any of the spendings. I'm not going to vote to raise the debt limit. And that's only going to encourage them. And the argument for raising it is that it's so --

KAYE: What's the problem with raising it?

PAUL: Well, you know, they argue that it's going to, you know, be devastating if we don't and we'll default. But I think the problems that we face, if we continue to do what we're doing, is much, much worse. And, besides, we're currently defaulting constantly. We default when we devalue the currency, and that is why our prices are going up.

Although today, Bernanke claimed that inflation is only a couple percentage points. When you look at the free market economists, they claim that inflation is over 9 percent according to the CPI that we used to use. So there's still a lot of inflation. And that means defaulting on the people because they're getting paid money that loses its value. They save money, they lose its value. And people who owe money get to pay back with cheap money. And that's also the way governments usually default on their debt. They devalue the currency. Very, very dangerous and eventually it ends up very badly with a lot more inflation.

KAYE: Well, your feelings certainly are well known about the Federal Reserve. And as I said, it was quite entertaining to watch you tangle with Ben Bernanke today. I want to play some of that and then I want to ask you about it. So, let's listen.

(BEGIN VIDEO CLIP)

PAUL: Then we also have the Fed to deal with, too. And I see the Fed as a problem because I see so much of this other spending wouldn't have gotten out of hand if we didn't have a monetary system where the system provides the funds. We don't have to be responsible because we can always say, well, it's up to the Fed. You know, if we didn't have the Fed buying up our debt, interest rates would rise and everybody would yell and scream, but you know what it would do? It would put pressure on us here in the Congress to do something about it.

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: You're mistaken in saying that the Federal Reserve has spent any money. You say $5 trillion. We have lent money. We have purchased securities. That's not buying -- that's not dissipating, you know, the money. We've gotten all the money back. As an article over the weekend by Alan Sloan (ph) showed, in fact, the Fed has been a major profit center for the U.S. government. We've turned over profits in the last two years of $125 billion. So we are not costing any money in terms of budget deficits or anything like that.

(END VIDEO CLIP)

KAYE: So, I want to give you the last word here, Congressman, on that little debate there. I mean you have gone so far as to say that we don't even need the Fed. Why is that?

PAUL: Well, the fed creates the financial bubbles. And if you have a financial bubble, you have to have a correction. The correction is a recession and the depression and then the price inflation and you have the unemployment. So their purpose is to give us low unemployment and stable prices, and we don't get any of it. So we're not getting much for it.

But for him to say they don't spend any money, that's a bit of strained language because he claims if you buy a security, that you're just adding reserves into the system. But where did he get the money? I mean if -- and he brags about the profits?

I'll tell you what. If I had absolute control of the printing press, I bet I could make some profits, too. It wouldn't be -- it wouldn't take a genius to make profits. But to say that, technically speaking, he's not spending money like we do in the Congress, but he is printing money and he is buying junk. He buys all the securities that nobody else wanted, and that's how he bailed out the banks and he bailed out corporations. So as far as I'm concerned, in a practical sense, that is spending money, money that he created out of thin air, and the people suffer. And the point I made during the conference was, in the past three years, the economy has not improved and we've ended up with a $5 trillion increase in the national debt.

KAYE: So, Congressman, before I let you go, I'm sure you pay attention to the polls. Close attention. If you don't become president, now that you've given up your job at the House, what will you do?

PAUL: Well, first I am going to concentrate on the campaign. And, actually, we're pretty optimistic about that compared to four years ago. And the one thing that we do know that when we look at our own polls is that the support I have is very, very solid. They're not going to go anywhere. The support for other candidates, they jump around.

So -- but I will continue to do what I've been doing in office or out of office. I've dedicated myself to, you know, defending individual liberties. That's the most important thing. If we have our liberties, we don't have to worry about the prosperity. The prosperity will come. But if you give up or liberties, as we have been, our prosperities -- our prosperity dissipates and that's what happens. So I'll keep fighting for that, which means sound money, free markets, a sensible foreign policy and balanced budget. But to concentrate on the principle that every individual deserves their liberties and free people can take care of themselves much better than anything we can do with a dependency on government and central economic planning.

KAYE: Well, I know that you've been working hard to change peoples' minds and change the country. And we wish you the best of luck with that. And when we call you on August 3rd, after the debt ceiling deadline, we hope you'll take the call and come back on the show and talk to us about that.

PAUL: Thank you very much.

KAYE: Thank you.

It is about 24 minutes past the hour on the East Coast. 1:24. Here are the top stories at this hour.

And it's not good news for the U.S. women's soccer team in Germany right now. France has just tied it all up. The score in the semifinal World Cup game now 1-1.

Afghan President Hamid Karzai led thousands of mourners at his half-brother's funeral today. Ahmed Wali Karzai, a council chief in Kandahar, was killed Tuesday by one of his security guards. The guard was shot dead by other guards. He had worked for Karzai for the last eight years. The Taliban has claimed responsibility saying the guard acted under their direction.

The body of former First Lady Betty Ford will be flown to Michigan today. Tonight, there will be a private memorial service held in her honor. She will be buried next to her husband in Michigan. Yesterday, friends, family and first ladies past and present gathered for a funeral in Palm Desert, California.

The longtime girlfriend of ex- mob boss James "Whitey" Bulger is in court in Boston again today for a bail hearing. Catherine Greig has been charged with harboring a fugitive. She was arrested along with Bulger in California last month. Her attorney plans to ask for home confinement while she awaits trial, contending that she poses no flight risk.

A very popular company is jacking up prices. How you can avoid paying more, next.

(COMMERCIAL BREAK)

KAYE: Netflix is a popular choice among people looking to rent movies without the hassle of ever leaving the house. In addition to being able to rent DVD movies, customers can also stream select titles from the Netflix website all for around $10. But now Netflix wants you to pay more for the combined service. Alison Kosik is at the New York Stock Exchange with the details for us.

So, Alison, let me get this straight, how much money are we talking about here?

ALISON KOSIK, CNN CORRESPONDENT: OK, we're getting ready to pay up to 60 percent more, but only for some members, Randi. Here's a breakdown. Take a look. Before this price -- these prices went up, it was $9.99 for one DVD a month by mail and Internet streaming. Well now, with these price changes, both services are going to cost $15.98. That is a 60 percent increase because what you have to do is you have to buy each service separately. If you want -- you know, if you want streaming, you have to pay for it. It's $7.99. And if you want a DVD by mail, you have to pay another $7.99 for that plan. Of course you can always downgrade, get only one service and then cut your costs. But either way, the new pricing is going to begin. It starts now for new customers. And if you're currently a Netflix customer, the new pricing kicks in on September 1st.

KAYE: And so why the increase? I guess a lot of people are probably curious about that.

KOSIK: Yes, you know what, Randi, Netflix is blaming higher costs. You know, streaming is growing more and more popular. Internet connections are getting faster and faster and you can watch videos on a number of mobile devices. It's becoming definitely more enjoyable. But the thing is, it's expensive for Netflix because Netflix has to pay to get the rights to stream these movies. And for Netflix, it costs hundreds of millions of dollars. So it's got to make up the money somewhere. So it's going right to the customers to do that, Randi.

KAYE: All right, Alison Kosik, thank you very much.

Well, explosions leave at least 20 dead in Mumbai, India. We'll have the details right after this. (COMMERCIAL BREAK)

KAYE: Time right now, about half past the hour. Let's check out some of the news and other headlines that you may have missed.

Disaster in Mumbai today. At least 20 people were killed, more than 100 others hurt in a series of blasts in India's financial capital. Police said the triple blast occurred within minutes of each other in several busy commercial area. New Delhi and Cocana (ph) have been placed on high alert.

We just got a statement in from President Obama here and I just want to read you -- it says in part, "I strongly condemn the outrageous attacks in Mumbai and my thoughts and prayers are with the wounded and those that lost loved ones. The U.S. government continues to monitor the situation, including the safety and security of our citizens." India is a close friend, the president says, and partner of the United States.

Media mogul Rupert Murdoch's troubles may have just spread overseas. Today, U.S. Senator Frank Lautenberg urged Attorney General Eric Holder and the head of the Securities and Exchange Commission to investigate whether News Corp employees broke U.S. law by bribing foreign officials. British Prime Minister David Cameron also has launched a wide-ranging investigation into the media group.

A three judge federal appeals panel says Tucson shooting suspect Jared Lee Loughner can refuse anti-psychotic medication. The court ruled yesterday that forcing Loughner to take drugs would violate drugs because he has not been convicted of a crime. Loughner is being held in a federal mental hospital after an earlier court ruling found him incompetent to stand trial.

Remember when the roof of the Metronome in Minneapolis collapsed under the heavy snow in December? Well, stadium officials and construction workers completed a test inflation of the new Teflon coated ceiling this morning, and it worked. Yes, good news. The $23 million project is expected to be finished in a few weeks, in time for the Minnesota Vikings to play their first preseason game, if there is, of course, an NFL season. That's the other issue besides the dome.

Excitement is building for the U.S. women's soccer team. The World Cup semifinals happening right now. We'll tell you what the score is right after the break.

(COMMERCIAL BREAK)

CHETRY: All right. Remember this?

(VIDEO CLIP)

KAYE: Oh, yes. That was our Richard Roth around this very same time last year covering excitement around the men's soccer team. Does the same hold true this year for the women?

Richard joins us now from -- where else -- a bar in New York City.

Richard, any hand holding this year?

RICHARD ROTH, CNN CORRESPONDENT: If you asked about hand holding, I'm not touching anybody in here. But the thing is, this match is anxiety ridden, 1-1, totally tied up. You just saw some reaction here.

Natalie, what's your reaction about this game? France is putting the U.S. under a lot of pressure.

UNIDENTIFIED FEMALE: They are and we need to possess the ball and we need to have that fighting spirit and come back and score.

ROTH: What's inside you right now? You've been going up, down, and you're going to Germany for the finals even if the U.S. loses?

UNIDENTIFIED FEMALE: Yes, no matter what I'm going to be there and supporting them and it's a little nervous right now. I can't eat, I have, you know, just excited.

ROTH: All right. Paulette, what's your reaction as this goal comes in close --

It is a U.S. goal.

(CHEERS AND APPLAUSE)

KAYE: Look out, Richard, somebody might kiss you.

ROTH: Pardon me? Yes, a little good luck there.

What do you think? I don't think that goal was ever coming.

UNIDENTIFIED FEMALE: It's Abby (ph) and her head. Abby and her head. She is just so good in the air and you can never take a break with the U.S. You always have to be ready because we're going to come at you.

ROTH: So that's Abby Wambach, the captain who scored the last second goal. Look at her get up there -- was that her? What a goal.

It's not just Americans here. There is actually a French person here who was getting optimistic.

Wally (ph), what did you think of the goal? The Americans are in the lead.

UNIDENTIFIED MALE: I'm very upset but it's a game so -- I would love to see the French team winning, but it's a game, so we'll see at the end of the --

ROTH: Well, there's still 11 minutes left. Good luck.

There's a lot of tension here, Randi, of course, in the bar. Isn't there tension always in bars? Maybe later in the evening. Back to you.

KAYE: Only you, Richard. What a plum assignment. You get paid to spend the afternoon in a bar watching the World Cup. Not a bad deal.

ROTH: No, usually I'm looking for diplomats or something. But I don't drink so it's no problem for me.

KAYE: All right, Richard. Well, keep a close -- uh-oh -- all right.

ROTH: No, France didn't score. He thought so.

KAYE: We'll check back in with you later.

ROTH: It's going to be right down to the end. OK, thanks, Randi.

CHETRY: OK, thanks Richard Roth.

A reality TV producer facing real-life murder charges. That story is next.

(COMMERCIAL BREAK)

CHETRY: The assassination of the half-brother of the president of Afghanistan has created a sudden power vacuum in the birthplace of the Taliban. President Hamid Karzai today attended the funeral for Ahmed Wali Karzai in the southern city of Kandahar. Wali Karzai was one of the most powerful men in Kandahar province. He was assassinated just yesterday by family friend and longtime bodyguard. The Taliban say the shooter was one of their sleeper agents.

Ben Farmer joins us now from Kabul.

Ben, it was a very emotional day for President Karzai.

BEN FARMER, CNN CORRESPONDENT: Yes, it's been a very difficult day for the president of Afghanistan today. Today he's buried a brother who was his staunchest ally in the south of the country. He's also buried a brother who he stuck by through thick and thin and against all sorts of accusations that his brother was involved in the drug trade and corruption.

Mr. Karzai arrived for the funeral in a helicopter and was joined by thousands of mourners. He was seen to be openly crying as he took part in the ceremony. At one point he forced his way through the press of mourners and climbed into his brother's freshly dug grave where witnesses said he could be heard sobbing.

To underline the importance of this funeral, he was joined at the gravesite by numerous cabinet ministers and governors and local power brokers.

KAYE: And are there any new details, Ben, at this hour, on the Taliban's claims that they were behind this?

FARMER: This murder still remains shrouded in mystery. The Taliban have claimed that Sardar Mohammed, the man who killed Ahmed Wali, was one of their sleeper agents. But it seems that that's not necessarily clear. Many security sources are saying perhaps he was a victim of a personal feud or a business feud.

A team of investigators have landed in Kandahar to try and find out. Many of his relatives and friends have been arrested. But with the two witnesses in this -- the two main witnesses now dead, it's possible we'll never really know what happened.

KAYE: And with Wali Karzai holding so much power in southern Afghanistan, now we have a power vacuum.

Is there any clue yet as to who might step in to fill that?

FARMER: Ahmed Wali's shoes are very difficult shoes to fill, very big shoes to fill. He was the most powerful man in Kandahar, perhaps in the whole of the south of the country.

As you say, his death leaves a vacuum. President Karzai tried to start to fill that vacuum today by appointing another brother Shah Wali Karzai, as head of the Popalzai tribe. Shah Wali Karzai is a little known figure. He's been very low profile. Many elders are not sure that he can fill his shoes.

KAYE: And there were a couple explosions, from what I understand, in Kandahar after the funeral today. Is there anything that we should know about that?

FARMER: Well, the funeral itself passed off safely, but there were a couple explosions afterwards. A few roadside bombs were found on the road taken by the funeral cortege. They were safely destroyed by NATO forces.

KAYE: All right. Ben Farmer in Kabul for us. Ben, thank you.

It is 44 minutes past the hour. Here's a look at the top stories this hour.

The head of Pakistan's intelligence agency headed to Washington for a day of meetings. The U.S. official confirms the visit but would not confirm who they would be meeting with. The visit comes at a time when tensions between the two countries continue to rise and a few days after the Obama administration announced plans to withhold $800 million in military aid to the country. Washington has accused the ISI of tipping off militants, a claim they have vehemently denied.

Hundreds of Egyptian police officers have been fired resulting from the January violence that to the country's president leaving office. The Interior Ministry spokesmen said 505 generals and 85 other senior officials were dismissed; 27 of them are accused of killing protesters. The reform of the police force and punishing those who arm protestors are key demands of demonstrators who continue to campout in Cairo's Tahrir Square. A California judge has ordered former "Survivor" producer Bruce Redman to be returned to Mexico on charges that he killed his wife. Redman and his wife were vacationing in Cancun in April 2010 when his wife's body was found in a sewer near a resort. Police briefly detained him, confiscated his passport and ordered him to stay in Mexico, though he later returned home to California.

And it's good news for U.S. women's soccer team fans. They just scored again at the World Cup semifinal cup in Germany, and the score right now three to one.

The body of former U.S. first lady Betty Ford on its way to Michigan for a private service. I'll tell you who is planning to attend right after the break.

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KAYE: More tributes today for first lady Betty Ford. Her body is being flown to her home state of Michigan. The former first lady will lie in repose at the Gerald Ford museum before being buried tomorrow next to her husband.

Yesterday, first ladies past and present as well as President George W. Bush honored Ford at a funeral in California. She was remembered as a women whose disclosures about her personal battles showed encouragement and grace, and brought encouragement to others.

Ted Rowlands joins me live from Grand Rapids, Michigan, which is where a private service will take place tonight.

Ted, President Clinton, we know was supposed to attend yesterday's service but ended up not being able to because of mechanical problems, I guess, with an airplane. Is he or any other dignitaries plan to attending the service there in Michigan?

TED ROWLANDS, CNN CORRESPONDENT: Yes, his place apparently had mechanical difficulties, so he was not, as you said, able to go to Palm Desert, so he will be here tomorrow.

Barbara Bush who was, you know, the first lady that wasn't there in Palm Springs, will be here tomorrow as well. The Cheneys will be here ,the Rumsfelds will be here. Lynn Cheney will deliver a eulogies here at this private ceremony, and that takes place tomorrow.

Her body is expected arrive about 5:00 local time here in Grand Rapids. And initially, her body will be brought here to the presidential museum, and there will be a small service here with the governor and the mayor and family members, that's at 5:15.

And after that she will lie in repose tonight until 11:00, and then again from tomorrow morning from 7:00 a.m. to 11:00 to give people a chance to pay their respects.

Then, as you mentioned, she'll be laid next to her husband in the back of the library in an above ground tomb, that after that ceremony tomorrow.

KAYE: She had so many fans, certainly probably because she was so outspoken and so open about what she was struggling with personally. Tomorrow, as you said, it's the people's service, as you call it. Any idea how many people might be expected there?

ROWLANDS: Well, they're expecting tens of thousands. You say she has a lot of fans around the world, but, boy, her fan club was here in Michigan, and specifically in Grand Rapids.

And when Gerald Ford died in 2007, 65,000, 70,000 people filed through during that time in January.

It's beautiful weather here. They're expecting tens of thousands to come today, this afternoon, and then again tomorrow to pay their respects to Betty Ford.

KAYE: All right. Ted Rowlands for us there in Michigan. Ted, thank you.

We should let you know that this is just in to CNN. Good news for women's soccer fans. We have just gotten word the U.S. has beaten France. Final score on today's match was three to one. So they will be moving on to the finals. Very good news.

Well, every day on this show we do a segment called the "Big I," it's about big ideas, innovations and solutions to problems. We all have problems with this one way or another, car accidents and the traffic pile-ups that result.

Well, right now our eye's quick reflexes and driving skills are the only things to prevent fender bend, right? Well, there could be an app for that.

Researchers in Italy have created an app with an automatic accident detection system that could potentially reduce the number of pileups by up to 40 percent.

Say there's an accident. That first car involved in the accident triggers an alarm. The car nearby picks up on the alert with an acceleration sensor. Your car, which is further down the road, finds out about it in real-time from the car that's just ahead of you.

So essentially, the app allows cars to talk to one another and then gives drivers time to slow down and avoid an accident. Developers are looking into integrating the program directly into car dashboards or into your navigation systems.

So far, researchers have tested the app on papers and computer simulations. Road tests will begin this summer, the real thing, in Los Angeles.

For more information, you can check out my Facebook page, Facebook.com/RandiKayeCNN.

The RNC launches it second ad today and they are asking the American people to embrace change of direction. A Political Ticker is after the break.

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KAYE: Well, as we told you, this just in, the U.S. women's soccer team has won today. So they'll move to the finals on Sunday.

Our Richard Roth is celebrating, I believe, somewhere at a bar in New York City. Richard, what are folks there saying?

ROTH: Well, I'm always a neutral. Let's find out. What's your reaction to the victory?

UNIDENTIFIED MALE: Fantastic. This team has done one great thing after another. What's not to love about it? Every time you think, oh, boy, here we go, we're not really getting it together, bam, two goals in five minutes in this case. We had the late one against Brazil. They're just awesome.

ROTH: What do you like about women's soccer?

UNIDENTIFIED MALE: I'm a big soccer fan in general. I actually got into soccer because my sister played for many years, and by watching her, she got me watching it.

ROTH: All right, thank you.

We're going to talk here with a woman who's going to Germany, promised to go for the finals even if the U.S. didn't win.

I was with you when they scored. We all saw you. Now how do you feel?

UNIDENTIFIED FEMALE: I feel great. I'm real excited. I'm definitely excited to see one of my good friends, Jill Loyden, she's on the team, she's a backup keeper. Just to see them play the way they're playing. They're going to win the World Cup.

ROTH: Your flight is tonight. You probably won't need an airplane to get there the way you're feeling.

Has the U.S. women's team become a favorite that then became an underdog and is now a favorite?

UNIDENTIFIED FEMALE: I think we've been an underdog for a while. I think everyone was expecting Germany to win, and then when they crumbled under the pressure, everybody thought, wow, this U.S. team has some heart. It's something we haven't seen in awhile.

ROTH: You can watch this at home. Why come to a bar?

UNIDENTIFIED FEMALE: I love the atmosphere, love coming with my friends and getting to cheer really loud.

ROTH: All right, thank you very much.

That's the view of two of the viewers who watched United Nations (sic) taught, tense win. Two goals late in the second half, France was coming on. The United States will be in the final against either Sweden or Japan -- Randi.

KAYE: This is very exciting, and I know exactly where you're going to be on Sunday, Richard. At a bar, very likely, somewhere in New York City watching the game.

ROTH: Like every Sunday.

(LAUGHTER)

KAYE: Richard, thank you.

Time now for a CNN Political Update. CNN's Joe Johns joins me now from the Political Desk in Washington.

And, Joe, Newt Gingrich praises Texas Governor Rick Perry again?

JOE JOHNS, CNN SENIOR CORRESPONDENT: Well, you know, it's the kind of thing that gives you a little bit of an update. He's a Republican presidential candidate, Newt Gingrich is, and he is praising Rick Perry, who might be a Republican presidential candidate, at least at some point.

So during a question-and-answer session in Charleston, apparently, Newt Gingrich weighed in once again about Rick Perry. Gingrich was asked who was the second best candidate for the Republican nomination, and he pointed out that Rick Perry and he are best friends, a great friend.

He also said Perry wrote the forward to Gingrich's book. He called him a terrific job creator. And he said he'd be a formidable candidate were he to get into the race.

It's not really surprising except for the fact that when a bunch of people abandoned Gingrich's campaign, questioning basically his work ethic, his commitment to fundraising, those people were advisers to Rick Perry, and some of them are even in place now looking into whether it would be a good idea for Rick Perry to run.

So you've got to ask, what's up with that, and it's certainly something worth following, Randi.

KAYE: All right, we'll continue to follow it, as I'm sure you will too. Thank you, Joe.

And your next update from "The Best Political Team on Television" is just an hour away.