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FBI Investigating Murdoch Empire; Obama Wants Debt Blueprint before August Deadline; Minnesota Shutdown Nears End; Casey Anthony Released Sunday; Murdoch Scandal: Exec Resigns; Commuters Brace for "Carmageddon"; Commuters Brace for "Carmageddon"; U.S. Military Reveals Cyber Attack; Debt Talks Get Testy

Aired July 15, 2011 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Yes, we do. We've got a lot to talk about. Thanks so much, guys.

It's 9:00 a.m. on the East Coast, 6:00 a.m. out West. Thanks so much for joining us.

The nation's debt crisis. The clock ticks, the pressure builds, the president tells congressional leaders you've got 24 hours or less to make something happen.

And new this morning, a top Murdoch executive resigns. Rebekah Brooks, former head of the disgraced tabloid "News of the World," is gone.

And in Southern California, drivers buckling up for carmageddon. A bridge demolition that will close down the 405, one of L.A.'s busiest highways.

And we begin this morning with the resignation of a key executive in the Rupert Murdoch media empire. Rebekah Brooks, editor of the disgraced tabloid "News of the World" is out. Many people were outraged when Brooks kept her job after the newspaper was shut down for scandalous reporting tactics.

And as Brooks steps down, the investigations ramp up. The FBI now investigating the Murdoch empire right here in the United States. Lawmakers, rather, demanding the probe amid reports that Murdoch's journalists hacked the cell phones of 9/11 victims and their families.

Susan Candiotti in New York with the details now -- Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi, Kyra. Good morning to you.

Yes, this investigation is now 24 hours old. As FBI tries to figure out how they're going to approach this.

All of it started, Kyra, with a report in a British tabloid that a private investigator here in New York, that there was an attempt to hire him to hack into phone records of 9/11 victims and families, as well as reach out into the voicemails of 9/11 victims and families. So the FBI, that appears to be the starting point. They're going to look to see whether there's any truth in that. Of course people on Capitol Hill as well 9/11 families have been pushing for this. The U.S. attorney general has acknowledged during a news conference in Australia in the last 4 hours that, yes, indeed, this is taking place.

And already we have reaction from 9/11 families, including Jim Riches who lost his son, a firefighter, on 9/11.

(BEGIN VIDEO CLIP)

JIM RICHES, FATHER OF 9/11 VICTIM: If somebody went in and took our information and took our last messages from our sons or what we were talking about, it's not none of their business unless they can ask us and if we're willing to tell them, we will tell them. But to invade privacy like that, America has rights.

(END OF VIDEO CLIP)

CANDIOTTI: And in fact, Mr. Riches and other 9/11 families are saying that if these allegations are true, it is horrifying and people should be prosecuted if they can find out who's responsible -- Kyra.

PHILLIPS: Susan Candiotti. Thanks, Susan.

And now the man who led New York through the 9/11 attacks and its horrible aftermath -- he's speaking out on the Murdoch scandal. Former New York mayor and onetime prosecutor Rudy Giuliani said this.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, FORMER NEW YORK MAYOR: Sure. I mean, intercepting communications like that is a crime. It has to be investigated. I think what there shouldn't be -- and we've learned recently with a bunch of criminal cases of different kinds, don't rush to judgment. Give people a presumption of innocence. I think that just how high up it goes is a big question and when we should be jumping to conclusions about.

(END OF VIDEO CLIP)

PHILLIPS: Well, Giuliani is also a longtime friend of Rupert Murdoch.

Now the nation's debt crisis and a new deadline. Forget August 2nd. The president says it's decision time now. And here's what he told Congress. You've got 24 hours or less to move forward on a deal.

And then there is this dire message from the big three global credit ratings agencies. If a deal isn't reached soon, they'll downgrade the nation's credit standing.

The president speaks to the American public today. A news conference less than two hours away from now. 11:00 Eastern. We will carry it live.

Let's get to the White House and Dan Lothian.

So, Dan, what do we expect the president on say come 11:00?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, a senior administration official telling me that the president will be explaining to the American people where they really are in this process, what he has asked congressional leaders to do, and how he is still pushing for the biggest deal possible.

Another White House aide telling me that the president will continue in that press conference to make the case that now is the time to sort of seize the moment in order to get the big deal, but I can tell you, after five days of meetings here at the White House, still this grand bargain deal does not appear like the Republicans pushing back, resisting that.

So it seems likely that it will be something either much smaller than that or perhaps something in the middle. What we do know is that after yesterday's meeting, the president called on these congressional leaders to go back and meet with their caucuses and then come back within 24 to 36 hours with some options about the way forward and, if not, perhaps they'll have to meet again over the weekend.

So, you know, all sides here trying to prevent what everyone has described as a catastrophic situation if that debt ceiling is not raised.

PHILLIPS: Dan Lothian at the White House. Dan, thanks.

And once again stay with CNN for live coverage of the president's news conference less than two hours from now at 11:00 Eastern.

And don't think for a second that the president is the only one pushing back here. His own base is protesting.

Our deputy political director Paul Steinhauser.

What's the news there, Paul?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, about an hour after the president's news conference in Chicago, outside the president's reelection headquarters, you're going to see the Progressive Change Campaign Committee, PCCC. They're one of these progressive liberal groups and they have been pushing back against the president for a couple of years now.

They're going to deliver what they say is 200,000 pledges from Democrats across the country who say they won't campaign, they won't contribute to the president's reelection campaign if he cuts Social Security, Medicaid or Medicare as part of this plan.

So, yes, Kyra, Republicans are hearing it from the Tea Party and the president and other congressional Democrats are hearing it from the progressive groups. No doubt about it.

Let's move from Chicago a little bit north and little bit west to Minnesota, where it looks like that two-week long government shutdown may just about be over. The Democratic governor up there, Mark Dayton, and Republican lawmakers say they've come to an agreement to end the shutdown up there.

Remember, Minnesota just like almost every other state needs a balanced budget. They didn't have it, they didn't have an agreement on July 1st and that's why the shutdown happened.

Looks like the Republicans here are a little bit more the political winners because Dayton and the other Democrats there had to give up plans to try to tax wealthy Minnesotans to try to end the budget standoff up there. Republicans didn't give us as much in these negotiations -- Kyra.

PHILLIPS: Well, I guess you could always take things to a ballpark?

STEINHAUSER: Yes, you can. And we did just that right here in Washington, D.C. Last year at Nationals Park, that's where the Nationals play in Major League Baseball, but it was the 50th Annual Congressional game.

Yes, and guess who won this time? The Democrats, 8-2. Second year in a row they won. They won big the year before. So give it to the Democrats. But, again, that's baseball. That's fun and games. And it's a little more, I guess, in budget and deficit negotiations -- Kyra.

(LAUGHTER)

PHILLIPS: Yes, no doubt. Although there are a lot of things flying, I'm sure, in the other negotiations as well.

Thanks, Paul.

STEINHAUSER: Good one. Good one.

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

Casey Anthony gets out of jail on Sunday. So what's next for the Florida mom? Hear what advice PR experts think that her next move should be ahead. Just ahead.

And guess I -- no, it's better late than never. A love letter finally arrives more than a half century later. You'll see what it says as we tell you.

(COMMERCIAL BREAK)

PHILLIPS: Well, in case President Obama isn't too busy with debt ceilings and deficit reduction, well, the U.S. women's soccer team has invited him to Sunday's championship showdown against Japan, and we know someone else who's going, too. She has a big wig.

Zain Verjee, live in London this morning.

And I know you're packing up, ready to go, you're going to be live from the game. Are you going to get to talk to the president?

(LAUGHTER)

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Yes. Yes. I just may, you know? It's going to be so exciting, Kyra, you know? I have my stilettos on, I'm putting my running shoes on pretty soon, and I'm going to be packing to go.

But it is going to be an exciting game. The U.S. women's soccer team is just one victory away from history. Dare to dream, Kyra. They're a great team that is said to be magical with a never-say-die attitude. They hustle, they're talented and they really fit, but they do have a tough test.

You know, Kyra, the Japanese are in it. I read one article that said it's not just about their height, it's about their heart, because they are fighting for a win to uplift the whole country after the devastation of the tsunami.

You know, they're really motivated by that. The U.S. women's team, though, is looking great and it is motivated to win -- Kyra. I hope I get to see it.

PHILLIPS: I -- we are looking forward to your reports. Zain, thanks so much.

We're checking stories "Cross Country" now.

A petty scary few moments at Boston's Logan Airport. Two planes collide on the runway right before takeoff. A Delta 767's left wing crushed the tail section of a smaller Delta commuter plane. Both planes evacuated.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Kind of crazy. That we couldn't sell lemonade. So -- but it was fun and stuff, but we had to listen to the cops and shut down.

(END OF VIDEO CLIP)

PHILLIPS: It is crazy. A lemonade stand bust. Can you believe police in Midway, Georgia, shut it down because the girls didn't have a business license and a vendor's permit. The chief says, quote, "The law is the law." The girls said they were just trying to earn money to go to a water park.

And get this. An Indianapolis man learns about a love letter written by his high school sweetheart 53 years later. It was signed, "Love forever, Vonnie," by the woman who would later become Clark Moore's first wife. They eventually divorced but Moore says he's anxious to read it and share it with his kids anyway. Casey Anthony, spending her last few hours behind bars. Sunday she gets released from the Orange County Florida jail. While some people are worried about her safety, others are wondering how she will rebuild her life after such an infamous trial.

Here's CNN's David Mattingly.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (voice-over): As one of the most watched and talked about people in the country, public relations executives weigh in with a word of caution to Casey Anthony. Do not confuse infamy with fame.

GENE GRABOWSKI, LEVICK STRATEGIC COMMUNICATIONS: It's not fame. There's interest in you. A lot of it is negative interest. Don't confuse that situation with celebrity. Don't think that you have to go out and do a whole lot of things right now. As a matter of fact, it's best probably to lay low.

MATTINGLY: If that's even possible. Angry words we heard outside the Orange County courthouse are tiny in comparison to the Casey Anthony hatred expressed online. More than 770,000 people are signed on to just one of many anti-Casey pages on Facebook.

UNIDENTIFIED FEMALE: We, the jury, find the defendant not guilty.

MATTINGLY: Acquitted in a court of law, Casey Anthony may need to begin fighting for her freedom in the court of public opinion the minute she walks out of jail.

BRIAN PIA, LUCKIE STRATEGIC PR: Most people are going to be looking at her expression. I think people need to see remorse. I think people need to see that she understands the fact that she lost her daughter.

She doesn't need to walk out of jail smiling. She doesn't need to walk out of jail with a smirk on her face. She needs to walk out of jail looking like a mother who lost her child.

MATTINGLY: And from there, experts believe it would be time, at least temporarily, to disappear. Consider the offers that come her way and decide how best to tell her story.

MARVET BRITO, THE BRITO AGENCY: We're going to have to hear from Casey Anthony. We're going to have to hear a first-person account. People will be interested in what she has to say. Whether or not they accept it or not is a different story.

(END VIDEOTAPE)

PHILLIPS: CNN's David Mattingly joining us now live from Orlando.

So, David, how is this going to work and where is she going to go?

MATTINGLY: Well, typically, when someone is release from the Orange County jail, they are brought out of a public waiting area where they go and get into a car for someone waiting for her. We have no idea if that's what they're going to do with Casey Anthony or not. They have gone to great lengths to make sure the when, where, and how of this departure from this facility has remained a secret.

It could happen some time in the wee hours of the morning. It could happen before dawn. It could happen sometime during the day. We just don't know.

But believe me, every single exit from this jail is being watched by someone in the media. There are cameras everywhere and probably be a surprise to everyone when we finally learn how she gets out of here.

PHILLIPS: All right. David Mattingly live in Orlando -- David, thanks.

I want my money back. That is the word from flyers who say, airlines, if you can't get me my baggage when I land, then pay up! We'll talk about that coming up next.

And move over, Lady Gaga. There's a new Facebook queen and it ain't you. We've got the scoop next in showbiz.

(COMMERCIAL BREAK)

PHILLIPS: All right. We got some showbiz headlines for you.

Move over, Lady Gaga, Rihanna is now the most popular woman on Facebook. According to camecount.com, Rihanna surpassed Gaga around noon yesterday with more than 25,000 fans. And let me tell you, Lady Gaga fans are not taking the news lightly. They actually took to Twitter telling fans to unlike Rihanna.

But Cher, Lady Gaga is the greatest thing. She is back in the studios after nine years recorded a song that Lady Gaga gave her. Cher shared the news on Twitter saying, "She gave me a great song and I'm beyond grateful."

And Eva Longoria's character may be popular in "Desperate Housewives," but her Vegas nightclub -- not so much. According to Radar Online, the club is closing its doors temporarily due to financial troubles. But her restaurant attached to the club still making money and will stay open.

Hey, alpha males, Zain Verjee has news for you. It's not lonely at the top, it's not very good for you either. Well, if you're a baboon. Our local Kenyan, Zain Verjee, has been investigating this nine-year study on stress and she's going to join us right after the break.

(COMMERCIAL BREAK)

PHILLIPS: All right, alpha males, listen up. Zain Verjee has some news for you. It's not just lonely at the top. It's also not very good for you. Well, I guess if you're a baboon, that is.

Local Kenyan reporter Zain Verjee has been investigating this nine-year study on stress and she knows it well.

Princeton scientists actually did the research but Zain is going to go ahead and read the animal kingdom tea leaves. Do tell.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: I was not the one analyzing the poop that gave us these phenomenal results.

PHILLIPS: Thank goodness!

VERJEE: -- the poop on safari in Kenya. But I tell you what is going on with this study when I'm home.

It's been nine years in the making and scientists basically determined that the baboons out there, if you consider the alpha males, they are actually more stressed out than they were thought to be. You'd think if you were a top dog, if you were the number one up there on the chain, you'd be relaxed and you'd have all food, you'd have all the females baboons, and you could sleep wherever you want.

So, that's not the case actually. They are as stressed out as the other baboons at the bottom of the totem pole. Scientists gathered their poop and took it over to a lab and they analyze it. I guess when you look at the testosterone levels, you can figure out the stress levels, too, in the baboons.

So, it turns out it ain't that great to be number one in the baboon world.

And when I go to Kenya next week, Kyra, which is where I'm going, I will be able to confirm that.

PHILLIPS: You will actually go and mingle with the baboons and discuss this scientific research with them? So, what does this mean for the number two guy, the number two baboon there?

VERJEE: Well, it means it's great to be number two. Actually, it's better than number one, because you're not as stressed out. You know? You're not worried so much about the female baboons and the food and proving that you're the man. You know? You can just say, OK, I'm number two, you know? I'm going to sleep here and get food here. Oh, I like this baboon here. You know?

So, being the beta male baboon is better than being the alpha male -- Kyra.

PHILLIPS: I'm not really quite sure what to take away from all of this to apply to the human male, but, you know, I think we can read between the lines on that as well.

Thank you, Zain.

Well, new and improved passenger friendly airline rules go into effect next month. No more sitting on the tarmac for hours or being hit with these hidden fees. But when it comes to your bags, of course, there is a catch.

Alison Kosik has more at the New York Stock Exchange -- Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Kyra, don't you hate it when you pay those hefty big bag fees and the airline loses your luggage anyway, and chances are, you're going to be stuck paying that fee even after the new consumer protections take effect unless, of course, you never get your luggage back because the airlines only have to refund those fees if it never returns your bag.

Now, your bag could is missing a week or more, but as long as you get it back, you cannot get that refund. Because of these new rules, they don't apply to delayed bags. Now, the good news is, for as many people as there are in the air, you know what? Airlines hardly ever lose bags altogether.

A technology firm did study on this and found for every 1,000 passengers around the world, only about 12 bags are mishandled and less than one bag is lost for every thousand people. But, Kyra, if you ask me, if you're in that little group that's affected, it's really, really frustrating, Kyra.

PHILLIPS: Well, we already pay such, you know, huge prices anyway. It seems that carriers should be more willing to just give a small refund.

KOSIK: Yes, it would be nice, right? Yes, the tickets are expensive enough on their own. But then, you know, you throw in those bag fees and we all feel really taken advantage of. You know, just look at the different from 2007 to last year, flyers pay just over $464 million for checked in bags back then. But in 2010, it was almost $3.5 billion, that's with the B.

Part of the reason industry posted, it is part of the reason why the industry posted these massive profits last year. So you know what, Kyra? They're not going so quick to give in knowing that they are making billions of dollars off you and me and our bags -- Kyra.

PHILLIPS: No surprise. Alison, thanks.

The latest "Harry Potter" movie opens today. And while stuff in the books has troubled some Christians, one priest says, hold on a second, give it a chance. Should we listen to the word of Harry Potter? That is next.

Also, look at the mad dash just for the chance to sign up for Section 8 housing. A lot of people got hurt in that commotion. We're back in three minutes.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories.

In less than two hours, President Obama will have update on the debt ceiling talks. CNN will carry it live.

The drawdown is underway in Afghanistan. The first of the 10,000 U.S. troops scheduled to withdraw by the end of the year left this.

And the FBI now investigating Rupert Murdoch's News Corporation. U.S. lawmakers called for the probe after learning about allegations that the phones of 9/11 survivors, victims and their families, were hacked.

And in Great Britain, more news on that scandal. A top Murdoch executive has resigned. Rebekah Brooks was editor of the tabloid "News of the World" when some of the most disgraceful abuses allegedly took place.

Dan Rivers is joining us now from London.

So, Dan -- to many people in Britain, she really became the face of this scandal, right?

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes. And now, she has finally gone after days of sort of clinging on to her job by her fingernails with everyone from the prime minister downward saying she should go. Well, finally, this morning, she did resign.

But that's not the end of the story yet because both she and Rupert and James Murdoch are all going to have to appear before a committee in the building behind me on Tuesday and they will be grilled by politicians who want some answers as to who knew what and when.

PHILLIPS: OK. Dan Rivers live out of London -- we will follow the fallout, of course, from that resignation.

Well, it took one of the FBI's most intense manhunts to finally nail mob boss Whitey Bulger. But even behind bars, what damage can he still do?

Deborah Feyerick looks into that on CNN presents this Sunday night. Here's a preview.

(BEGIN VIDEOTAPE)

JOHN SHEA, FORMER DRUG RUNNER: I met Whitey between the age of 15 and 16.

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): John Shea, nicknamed Red, grew up in a tight knit world of South Boston's old housing colony projects. Shea, a golden glove boxer with a wild streak wanted to be just like reputed crime boss Whitey Bulger and the Irish gangsters who ran Southie.

SHEA: Over there is colony project an over here the harbor projects where Whitey grew up and Santa Monica church. Next to Santa Monica Church, around the rotary, is the liquor store and the video store where it was base of operation.

The guy was legendary.

FEYERICK: Shea says Bulger was the undisputed king of Southie.

SHEA: He wanted to be as strong and as powerful and as rich as he could be.

FEYERICK (on camera): Whitey was the toughest of them all.

SHEA: Are you kidding me? The tough guys shake. He made them shake.

FEYERICK (voice-over): Raised by a single mom, Shea looked up to Bulger as a father figure and mentor. Shea's boxing skills came in handy. He says he worked for Bulger first as an enforcer, shaking down debtors. Then, in an initiation, Bulger took Shea to a basement and pulled a gun.

SHEA: It was called a test and that's when I had become the boss after that.

FEYERICK (on camera): And that put you in charge of the drugs?

SHEA: That put me in charge of the drugs.

FEYERICK (voice-over): In 1990, Shea was convicted of cocaine trafficking. He served 12 years, refusing to cooperate in exchange for a shorter sentence.

SHEA: They wanted Whitey through me and I wouldn't give him up. They could have threatened me with electric chair and I wouldn't give him up, ever.

FEYERICK: Because in Southie, it was OK to be a criminal, but not a rat. And when Shea, in prison, found out Bulger was an FBI informant --

SHEA: It was almost like someone reached through the phone lines down my throat and tore my heart out. So, that's what it is for me, because I honored the code.

FEYERICK (on camera): And they played you.

SHEA: And they played me, because Whitey knew.

FEYERICK (voice-over): As Bulger went on the run, his betrayal out in the open, his 20-year reign as Boston's most notorious mob boss came to an end.

SHEA: I would have died for that guy. I would have died for him.

FEYERICK: With two books to his credit, Shea says he has taken responsibility for his early life and is now a changed man.

As for the former king of Southie? Shea believes he still is calling the shots.

SHEA: He is playing them. Is he giving them information? Is he talking to them? You guarantee he is. He started the minute they captured him.

But psychologically, he's playing them. Guaranteed!

(END VIDEOTAPE)

PHILLIPS: Deb joins us now from New York with the back story on Whitey Bulger -- Deb.

FEYERICK: You know, it's so interesting, Kyra, because the more you read, the more you learn about him and speaking to people about the hold he had on South Boston. Shea, who you just saw there, calls Whitey Bulger a gangster of psychopathic intelligence and unusual anger. It didn't matter if you owed him $100 or $100,000. It was a matter of principle. You had to pay up.

And, you know, all of the gangsters had a code and you can see the anger in Shea's eyes and his demeanor. It was better to be dead than to be a rat. So, when the underworld found out that Whitey Bulger was an FBI informant, they realized he'd been playing them all along, selling them out. He demanded loyalty. But in the words of one writer, it was a one-way loyalty, Kyra.

PHILLIPS: Deb, your CNN presents on Sunday night, we look forward to it. Thanks so much.

FEYERICK: Of course.

PHILLIPS: After more than a decade, the spell will soon be broken.

(MOVIE CLIP PLAYS)

PHILLIPS: Opening today, "Harry Potter and Deathly Hallows Part 2" has already hauled in 25 million bucks. It's the final movie in the series. But don't worry, Potter will still live on in theme parks, online ventures, toothbrushes, pajamas, Halloween costumes.

But will the word of Potter live on? When shelves started filling up with "Harry Potter" books, some hard-core religious folks felt the story insulted their beliefs and made heroes out of warlocks. However, our next guest says the stories of "Harry Potter" don't teach doctrine but rather ask questions of ultimate meaning.

Danielle Tumminio teaches the class "Harry Meets the Bible" at Yale. She's also an Episcopal priest.

So, Danielle, what are the questions of ultimate meaning that are posed through Harry Potter and the other characters?

DANIELLE TUMMINIO, LECTURER, YALE UNIVERSITY: Well, it's such a great question. You know, I think what we see in the books, the questions that are most prominent have to do with evil and death. So, Harry is faced with the death of his parents and has to say, "What does their death mean for me? Can I have a relationship with people who have died? How do I carry on and live with their memory?"

And, you know, if the books are about anything, it's about a fight against evil and how we respond to evil and what kind of power evil has over us.

And I think that in the journey of the seven books, but especially that last book, and the half we're seeing in the film, that's the question that Harry and his friends are asking.

PHILLIPS: So, what do you say to the Christians that say, but, Danielle, these films are about a wizard, and the wizard story, spells, potions, wands and curses. You know, why should I be inspired by that? Or how should I be inspired by that?

TUMMINIO: Yes. I -- well, the first thing I encourage them to do whether or not they want to expose their children to the books is give them a try on their own and if they do want to read them, read them with their children and make that into a teachable moment.

But with regard to the presence of witchcraft, the way I -- I talk to my students and the way I talk to parents about it is to say witchcraft is a power and it's a gift that is given to people in this particular world and it can be used for good or it can be used for ill. And the bad characters are certainly using it with ill intentions.

And just like anything that's powerful, like medicine, like knowledge, it can be used well or it can be used, you know, dangerously. And so, the question to my mind is not -- are the books evil or heretical because witchcraft is used? But, instead, are they heretical because of how it's used?

PHILLIPS: Well, it's n interesting write, for sure. Danielle Tumminio, you can read the entire piece on our Belief Blog on CNN.com. Danielle, thanks.

And Harry Potter fans tonight, you get insider pass. Larry King takes you behind the scenes for the a making of the final movie in the series. Join Larry with the cast for "Harry Potter: The Final Chapter," a CNN special hosted by Larry King. That's tonight, 8:00 p.m. Eastern.

Traffic is already bad in Los Angeles but it's about to get even worse as the city braces for a major freeway shutdown.

And those drivers won't be going anywhere and neither was the window washer dangling above the street. We're going to show you the amazing rescue. We're back two minutes and 20 seconds.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories cross country.

This is just another sign of how bad our economy is. Take a look at this. These folks are actually lined up for Section 8 housing. But when the doors open, they started rushing. Several people, including a pregnant woman, were trampled. No one seriously hurt.

Someone stealing mailboxes in Los Angeles. Four of 200-pound blue boxes bolted to concrete slabs were taken. The Post Office is warning customers about the danger of identity theft, but the real target may be that metal.

And firefighters in Seattle had to rescue a window washer as he dangles 65 feet above the street. His chair broke. Only his safety harness saved his life. A rescuer on a ladder truck actually brought him down.

In southern California, drivers buckling up for carmageddon. A bridge demolition is going to close down the 405, one of the L.A.'s busiest highways. It's likely to cause a pretty big traffic nightmare as well.

Casey Wian is there.

So, Casey, what do you think? Is L.A. ready for this?

CASEY WIAN, CNN CORRESPONDENT: I think L.A. is ready for this, Kyra. What we're talking about is behind me. Over my shoulder, you can see the Mulholland Bridge, and that is spanning the 405 freeway connecting the San Fernando Valley section of Los Angeles to the west side of Los Angeles.

Now, starting tonight, officials are going to begin demolishing that bridge slowly with jackhammers. What they're going to do eventually is to add a carpool lane to the 405 freeway to ease traffic congestion. What that means this weekend for a 10-mile stretch of this freeway, it is going to be completely closed.

Officials are very worried about the traffic gridlock that could result throughout southern California from this freeway closure, spreading to other freeways throughout the area. For weeks now, they have been warning the public. There have been signs all over southern California on freeways about this freeway closure.

They are asking that people look for alternative means of transportation. Use public transportation if at all possible. They have added buses. They have added trains. They are also telling people to expect delays if they must drive.

But the main advice is if you don't have to drive, stay home and avoid this area completely.

Now, you mentioned the term carmageddon. A lot of people have used this term. It's a lot of hyperbole because southern California has survived much worse traffic situations than this before. You think back to the 1994 Northridge earthquake, we had two major freeways shut down for weeks. It was a nightmare then but the economy, the area did survive, did come back.

Probably the closest example we can think of in semi-recent history is 1984 Olympics. That was also considered to be before the event, a potential traffic nightmare. Angelinos basically stayed home and it was one of the lightest periods of traffic that this area has seen for, you know, decades, Kyra.

So, officials say that they are warning the public. They are saying that if, on Monday, when this is all wrapped up, that everybody comes back and says this was a big nothing, that they exaggerated, that that's OK, because they want to prevent these significant problems from spreading.

So, they are saying it's better to be on the cautious side than to sort of pretend like nothing is happening -- Kyra.

PHILIPS: Got it. Casey Wian there in L.A., we'll see how this impact those 500,000 plus drivers that take to that highway.

Later today at 2:00 p.m. on the "CNN NEWSROOM" with Randi Kaye, her guest will be the Los Angeles mayor. He will join us live to talk us how it's going to impact the City of Angels.

Well, it could be just days from the start of NFL training camps. We're going to tell you about some big progress to end the lockout. Sports in seven minutes.

(COMMERCIAL BREAK)

PHILLIPS: Stories making news later today.

At 11:00 Eastern, President Obama holding a news conference. The big expected talking point, the debt ceiling negotiations. You can watch it live right here on CNN.

12:30 Eastern, Mr. Obama is scheduled to speak to astronauts aboard the space shuttle "Atlantis". It's the last mission for the shuttle program.

And later tonight in southern California the traffic nightmare known as "Carmageddon" officially begins. Construction workers is going to be reworking the L.A.'s busiest interstate, the 405.

Lots of developments in the next hour of the CNN NEWSROOM. Let's check in first with White House correspondent -- actually, no. We're going to check with the Pentagon correspondent Barbara Starr. That was a typo. Then again, Barbara, you can handle both beats, I'm sure.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: I would always refer to my friend Dan Lothian.

Kyra, you know, if you think the phone-hacking scandal in Britain is grabbing world headlines, wait until you hear what's been going on at the Pentagon. We'll have that story coming up.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: And I'm Susan Candiotti in New York. As Barbara just said, the FBI already is into its investigation into that possible phone-hacking scandal of 9/11 victims here in the U.S. We'll also have reaction from the 9/11 families. That in the next hour.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, President Obama will be holding the second press conference this week here at the White House. A chance to not only prod congressional leaders to get an agreement on deficit reduction but explain to people what's happening here in Washington. I'll have more on that story in the next hour.

PHILLIPS: It sounds great, thanks guys.

Also ahead, retirement; doesn't that word just sound fantastic? But if you're single, you might not be saving enough to relax on that beach. We'll explain.

(COMMERCIAL BREAK)

PHILLIPS: Well, it appears that no one is safe from hackers, even the U.S. military. For the first time the Pentagon reveals that its computer network was hacked.

Here's Pentagon correspondent Barbara Starr.

(BEGIN VIDEOTAPE)

STARR (voice-over): In the field, Touch Screen phones and tablet devices are being tested by soldiers. Soon troops may be texting battlefield messages, photos, and reports right from the front line.

But modern communications are risky. The phone hacking scandal in Britain just the latest example of today's vulnerabilities. And just as the Pentagon unveiled its plans for operations in cyberspace, top officials revealed one of the worst breaches ever.

UNIDENTIFIED MALE: Indeed, in a single intrusion this past March 24,000 files were taken.

It was done, we think, by a foreign intelligence service. In other words, a nation-state was behind it.

STARR: Pentagon officials confirmed it was sensitive U.S. military data taken from a contractor's computer system. Cyberspace is now a potential war zone.

UNIDENTIFIED MALE: Cyber attacks will be a significant component of any future conflict, whether it involves major nations, rogue states, or terrorist groups.

STARR: In 2008 an infected flash drive was inserted into a laptop on a U.S. military base. A foreign spy agency had placed a malicious code on the drive, transferring secret data to foreign control. For the first time a foreign government had a cyber beachhead.

The new Pentagon strategy focuses on defending military systems from theft and denial or disruption of service. But it's tough.

UNIDENTIFIED MALE: You're going to wind up using component elements that are built around the world. And so the issue of securing a supply chain becomes, you know, very much a security matter.

STARR: In the event of a devastating attack in military cyberspace the President could order a conventional counterattack using missiles or bombs. But at least one senior officer says even the more mundane phone-hacking scandal is still concerning.

UNIDENTIFIED MALE: That does worry me. More from the standpoint that to date industry in the chip sets that we use in our displays, the chip sets we use in our phones or other end point devices don't -- are not currently configured to encrypt. And we're going to have to start to think our way through as a nation.

(END VIDEOTAPE)

PHILLIPS: CNN's Pentagon correspondent Barbara Starr joining us. So Barbara, do we know any more about this computer intrusion?

STARR: You know, the Pentagon clearly wanted to say just a little bit about it, let people know that it had happened, but they won't say what country, what spy service they think may have been responsible for it.

And really it's just the latest in a series of incidents. Everything from information on aircraft electronics to satellite communications appears to be vulnerable these days -- Kyra.

PHILLIPS: Barbara Starr. Thanks.

Well, we could have a deal to end the NFL lockout as soon as this weekend. ESPN reporting the players and the owners have reached an agreement on big issues: player compensation, salary cap, and rookie wage structure. Both sides is talking again this morning. The league is up against a deadline to get a deal done by next week so no pre- season games are lost.

All eyes on 20-year-old Tom Lewis, with the British Open second round under way, he was tied for the lead after the first day, setting a record for the lowest round by an amateur in the history of the tournament.

And check out this shot. The 16th hole, that's Dustin Johnson using a pitching wedge from the tee. Yes, it was a par 3, 159 yards. And guess what? You got it. He got a hole in one.

And the sun broke through the clouds at Coors Field during last night's Colorado-Milwaukee game, a beautiful rainbow across the crowd. So Brewers first baseman Prince Fielder called time, went to his dugout, grabbed some shades, he couldn't find any. So guess what?

Yes, you got it. A Colorado fan said hey, take mine, pal. Fielder does, goes back in the field. And then when the sun went behind the clouds again -- he's such a nice guy -- he returned the glasses to the fan. And you can see he's texting everybody what happened.

Well, you know, lawmakers can actually say the darnedest things when the debt clock is ticking. Tempers have flared during these talks, which at times have been described as intense and unproductive. CNN's Jeanne Moos looks at the lowlights.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: We are indebted to the debt ceiling for making our politicians testy, testy.

UNIDENTIFIED MALE: President Obama, quit lying.

UNIDENTIFIED FEMALE: I think Mitch McConnell, frankly, has lost his mind.

REP. CORRINE BROWN (D), FLORIDA: And you think this mess started 18 months ago? No, it did not.

MOOS: A Democrat gets fiery. A Republican mocks her back.

REP. STEVE WOMACK (R), ARKANSAS: I think we're going to have to extend the space shuttle for an extra day to retrieve that thought process. It got so far out there in orbit.

MOOS: These politicians aren't even the ones stuck in the room where the debt talks are taking place.

Now, since cameras aren't allowed in the negotiating room, we can only imagine the annoyance, the exasperation, the tension.

UNIDENTIFIED MALE: Temperatures began rising.

UNIDENTIFIED FEMALE: Debt negotiations turning nasty.

UNIDENTIFIED MALE: An angry president shoves his chair back and walks out.

UNIDENTIFIED FEMALE: It seems like the President had a, well, hissy fit.

UNIDENTIFIED MALE: When it almost came to blows between Eric Cantor and the President.

MOOS: Almost came to blows? That's almost as overblown as comparing the debt talks to the "Real Housewives of New Jersey".

UNIDENTIFIED FEMALE: (EXPLETIVE DELETED)

UNIDENTIFIED FEMALE: Theresa completely, certifiably crazy out of her mind.

MOOS: Remind you of anything?

UNIDENTIFIED FEMALE: I think Mitch McConnell, frankly, has lost his mind.

MOOS: Mitch McConnell's raise the debt ceiling plan got bashed by both sides.

DONALD TRUMP, REAL ESTATE MAGNATE: It's called el foldo.

MOOS: And the President got compared to a Popeye character.

UNIDENTIFIED MALE: He reminds me of the cartoon character Wimpy where Wimpy said --

UNIDENTIFIED MALE: I'll gladly pay you Tuesday for a hamburger today.

MOOS: This has literally become a food fight.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We might as well do it now. Eat our peas.

ELISABETH HASSELBECK, CO-HOST, "THE VIEW": Tell us to eat our peas like bratty little kids.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: By the way, did you see I got a big plate of peas and I ate all my peas. So now it's the President's turn to cut federal spending.

UNIDENTIFIED FEMALE: Speaker Boehner reportedly said that dealing with the Democrats is a lot like dealing with Jell-o.

UNIDENTIFIED FEMALE: Jell-O is slippery, slimy --

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: I love Jell-O personally; if you mix peas in it, you can get --

MOOS: Never mind the debt ceiling. Just be glad there's no blood on the ceiling. Unlike Al Capone in "The Untouchables" --

ROBERT DE NIRO, ACTOR: I get nowhere unless the team wins.

MOOS: -- made the politicians of the debt talks take a bat to the budget. Jeanne Moos, CNN, New York.

(END VIDEOTAPE)