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Extreme Heat; Taliban Claim They were Hacked; Debt Deadline Approaches; Hopes Rise on Bipartisan Debt Deal; Murdoch Scandal Fallout; Prime Minister Grilled, Heckled; "E-Books" and The Reading Revolution; Meet the Murdoch Family

Aired July 20, 2011 - 09:59   ET

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

KYRA PHILLIPS, CNN ANCHOR: It's 10:00 a.m. on the East Coast; 7:00 a.m. out West. Hello everyone. Thanks for joining us.

A bipartisan deal to raise the nation's debt ceiling building hopes that the government won't run out of money on August 2nd. President Obama says Congressional leaders need to talk turkey in today's meeting.

Most of the central U.S. under a heat alert and the dangerous temps will blanket the east by the end of the week. Some areas feel as hot as 126 degrees.

The Taliban blaming U.S. hackers for a text that the announced the death of its leader Mullah Omar. The Taliban says no, he's alive and well.

Two steps forward, one step back. That seems to be the debt talk tango in Washington. The House has passed the cut, cap and balance bill, which would limit federal spending and future taxes.

The Republican majority pushed it through, but its passage sun likely in the Senate and doomed should it reach the president. So the focus now turns to a bipartisan bill proposed by the Senate's gang of six.

President Obama supports the plan and is encouraging congressional leaders to follow suit so he can sign the bill into law before the August 2nd deadline.

In fact, here's a measure of just how worrisome that will deadline is. This new glimmer of optimism helped the Dow gain more than 200 points for its biggest day of the year recovering both angles.

Kate Bolduan is on the Hill. Brianna Keilar at the White House. Kate, let's go ahead and start with you. What exactly is in the plan proposed by the group of six?

KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: It's a big plan. Some were describing it as really a huge long-term deficit reduction plan that includes some $3.6 trillion, $3.7 trillion in deficit reduction, Kyra, over the next 10 years, $500 billion in deficit savings in the immediate term, if you will. It also is calling for new revenue, which some will read as tax increases, a touchy point there. Another touchy point it takes on is entitlement reform. So there is a lot in this plan.

But this, the goal of this plan was really to make the president's fiscal commission, they came up with guidelines and suggestions to make that a reality. And this has been worked on for months by this bipartisan group of senators, three Democrats, three Republicans and they've come up with this massive plan.

But to be clear, their focus has always been on long-term deficit reduction not necessarily, Kyra, in relation to this specifically this debt ceiling debate as they've been looking at this far before this debate really heated up, Kyra.

PHILLIPS: All right, so Brianna, what's the White House doing to make the case for this plan?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Kyra, we saw yesterday the way the president's really trying to push this forward is by using the bully pulpit, coming to the cameras yesterday. He's really trying to appear as kind of the great compromiser that he's trying to get these two sides.

Democrats and Republicans really to broker a deal on something like this, although obviously he has his point of view. If you were to say that he's sort of like a parent in this, I guess you could say the Democrats were really more his favorite child.

We also know that there are ongoing discussions going on. The president has a pretty light schedule today. We're waiting to see if perhaps a meeting will be announced between him and the principal negotiators here, congressional leaders.

So far, there is no announced meeting, but we know everything cans have been ongoing. In fact, Senator Reid just mentioned that he was on the phone last night with President Obama, on specifics, Kyra. I will tell you the White House is being very mum on all of the back and forth.

PHILLIPS: So Kate, bottom line, what's the reality of this actually getting through?

BOLDUAN: Very good question, Kyra. Bottom line is that members of this group have already acknowledged as Senator Dick Durbin a Democrat said, this huge plan is not ready for primetime, his words.

Meaning that this huge plan is not going to be scored and put into legislative language in time to beat this August 2nd deadline, but there is some discussion about maybe folding in elements of this plan into possibly that McConnell Reid fall back plan.

One suggestion by Senator Kent Conrad is to use this is plan possibly as the baseline for discussion of the deficit commission that could be set up as part of that fallback plan. But it's all part of this kind of very developing story as we're continuing those conversations, Kyra.

PHILLIPS: Brianna, House Republicans not exactly embracing this?

KEILAR: No, they're not exactly embracing this, and obviously, the White House is aware of this because we've heard the speaker say on some very important points, this falls short. I think really, you know, it has to be seen.

But I think the expectation as Kate mentioned is this would be very difficult to pull off and we heard the president say yesterday, Kyra, the concentration is very much still on this plan that Senators McConnell and Reid are working out.

But as you know, Kyra, that puts the president in the unenviable position of having to raise the debt ceiling three times, essentially on his own with a minimal -- minimum amount of support from Congress.

And certainly that would be very politically difficult to make that ask three times between now and the 2012 election.

PHILLIPS: Brianna Keilar and Kate Bolduan, appreciate it. We'll be talking a lot more.

All right. Are we going to be moving on to Murdoch? OK, we're going to talk more about the Murdoch scandal and the fact that David Cameron found himself in a little heat when he testified. We'll have that out of London right after the break.

(COMMERCIAL BREAK)

PHILLIPS: The Murdoch media scandal far from over. Matter of fact, Great Britain's prime minister faced a grilling and more than a few heckles when he appeared at a special session of parliament.

David Cameron has found himself increasingly tainted by claims that he was too cozy with the media empire and its leaders. Meanwhile, get this. Amid the scandal, the company is showing signs of rebound.

News Corp stock surged more than 5 percent while the Murdochs testified yesterday before members of parliament. In more simple terms, the company regained about $2 billion of its lost value.

Let's get straight to Dan Rivers in London. Dan, we've seen the public outrage aimed at the Murdochs. What's the street view of Prime Minister Cameron and his speech?

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, I don't think there was any sort of knockout blow landed on him today. The debate is still going although the prime minister is not in the chamber now.

But parliament behind me should have already gone on holiday, but they came back especially for this debate that's a sign of how serious this is all being taken. The prime minister coming back early from a trip to southern Africa to sort of face the music as it were in the building behind me.

Again, he was sort of asked repeatedly about his lapse, supposedly, of judgment in hiring this former tabloid editor, Andy Coulson as a director of communications, asked again about the exact nature of his discussions with people in Murdoch's empire during a time when the government was considering this takeover of a broadcaster here, B-Sky-B.

The prime minister hit back though. It was a robust performance from David Cameron. He was really sort of on many occasions asking for unity rather than decisiveness from the opposition. Here's what he said.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: What the public expects is not petty political point scoring, -- what they want, what they deserve is concerted action to rise to the level of events and pledge to work together to sort this issue out once and for all, and it is in that spirit that I commend this statement to the House.

(END VIDEO CLIP)

RIVERS: So the prime minister there fighting back, but I think he will remain under pressure for many more weeks and months to come. This story still has a long way to run.

We're told that this police investigation will almost certainly result in more arrests. They've got 11,000 pages of evidence to go through in all this.

And as far as the political dimension of the story, well, there is an awful lot of political hay to be made by the opposition who are sort of revealing in this if you like trying to embarrass and corner the prime minister wherever they can.

PHILLIPS: Dan Rivers live from London. Coming up at 10:30 Eastern, we've got meet the Murdochs. A look at what could happen to the Murdoch family's control of its empire after the hacking scandal.

Conduct unbecoming of an officer. That's why a slew of naval commanders are now being relieved of their command. CNN Pentagon correspondent Barbara Starr live with more on, I guess, you could say pretty embarrassing facts that led to a rather unusual memo, shall we say?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Indeed, Kyra. The Navy's top officer is not happy. Here's what's going on. You know, just this week, a Navy flight squadron commander relieved of duty by the Navy for what we are told is an alcohol-related incident out on a port call in the Middle East just the latest incident.

So the far this year, 14 Navy commanders relieved of duty and we're only in the month of July, 14 so far this year, 17 all of last year, all of this prompting Admiral Gary Roughead, the chief of naval operations to release a four-page memo.

He has written to prospective commanding officers reminding them in very blunt language of their responsibilities saying in part, and I quote "you will be held accountable to the highest standards of conduct."

And certainly about 14 of them did not meet that standard. What are they getting relieved of duty for? Well, you know, it ranges from everything from allegations of drunk driving, inappropriate personal relationships, mistreating other sailors, one commanding officer relieved of duty even for mishandling loaded weapon, all of these things, even two of them relieved of duty for running their ships into buoys in harbors.

Now of course, it's not just the Navy we want to say. The Army, the Air Force, the Marines, all over the last many months consistently relieve officers of duty when they fail to meet standards.

Sometimes it's just loss of confidence in command, but the navy certainly cracking down the chief of naval operations making it very clear, he wants this to stop, Kyra.

PHILLIPS: Barbara Starr live from the Pentagon. Thanks, Barbara. Checking stories cross country now, kids in Memphis, Tennessee may be doing a little celebrating today. That's because the school district is keeping schools closed until the city ponies up 140 million bucks that the city owes it. Schools are scheduled to open August 8th.

In New York, it's mangled and partially burned the fire truck from Ladder Company Three is returning to ground zero. It's been almost 10 years since it was used to respond to the scene of the September 11th attacks. Truck's going to be permanently installed in the 9/11 Memorial Museum.

Talk about a close call. A woman had to be rescued from the Niagara River right near the false. She had been hiking along the shore and slipped into the water. Luckily for her, there was a tour boat nearby that swooped in for the rescue.

Coming up, with more and more people embracing e-books, are regular books virtually doomed? And she's been on "Sesame Street," "Iron Chef," now first lady Michelle Obama will appear on "Extreme Makeover Home Edition" and for a great cause.

Don't forget, if you're walking away from the TV, it doesn't mean you have to stop watching. You can take me with you. All you got to do is stream live on your phone, computer, iPad. Here you go. Check it out. It's happening right now. A little bit of a delay here, cnn.com/video. And then you just upgrade the new app for free, by the way and there you go. You can watch us live anywhere that you are.

(COMMERCIAL BREAK)

PHILLIPS: All right. Showbiz headlines now. Ashton Kutcher takes it all off. How's this for the first ad promoting the retooled sit-com, "Two and A Half Men?"

Cast members it going commando hopefully to command your attention. What about Charlie Sheen you ask? Well, he says he's signed on to a new sit-com not yet sold to a network.

Well, no title yet, but the 23rd Bond film set to hit the theaters late next year. Daniel Craig reuniting with his buddy after Reith Evens. One more reason to watch, well, the Welsh actor starred with Craig in a movie before where he played the stalker in kissed him.

New Bond girl? ABC says Michelle Obama will guest star in "Extreme Makeover Home Edition." She'll head to North Carolina to work on a center for homeless female vets. Her episode airs in October.

With borders announcing it's going to out of business, the publishing industry is desperately trying to navigate the age of the e-book. Martin Savidge sums it up.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): Once upon a time, all books had pages and were only bought in stores. What a fairy tale. Today, we read things called kindles or nooks and books are downloaded anywhere any time.

To see how much things have changed, just peer into John McClure's front window as he runs his publishing company from a spare bedroom.

UNIDENTIFIED MALE: This is actually a book we publish, "Get the Job You Want in I.T."

SAVIDGE: He used to go to borders, then saw the writing on the wall and gave up his I.T. job to begin Signalman Publishing. So far he's published 200 electronic books and seems his business double each year.

JOHN MCCLURE, SIGNALMAN PUBLISHING: I think publishing is undergoing a huge change not unlike the whole record industry with downloadable music.

SAVIDGE: So is it the end of paper books? McClure says no. Not even close.

MCCLURE: We're just in the last three years. It's literally come to about this point where e-book sales are about on par with the paperback sales.

SAVIDGE (on camera): But you don't think paperbacks are going to go away?

MCCLURE: No, I think it's going to level off somewhere in the middle. SAVIDGE (voice-over): Marketing research expert Brit Beemer agrees. He points out only 11 percent of consumers say they would buy an e-reader.

UNIDENTIFIED MALE: So you still have 90 percent of Americans are still going to buy a book.

SAVIDGE: Beamer says it would be wrong to think that borders went bust because bookstores are obsolete.

BRITT BEEMER, AMERICA'S RESEARCH GROUP: You can't look at borders to me as a failure of the book industry. You have to look at borders as a failure of a retail concept.

SAVIDGE: So if borders got it wrong, then DNL books would seem to have got it right.

UNIDENTIFIED FEMALE: This is just regular romance.

SAVIDGE: Jan Packwood with his 38,000 books and 4,000 loyal customers. Daughter Dina manages the place.

UNIDENTIFIED FEMALE: Well, we're here to stay.

SAVIDGE: So far they've been around 24 years and despite all the changes in the book business, their readers keep coming back. Packwood says their secret is something you just can't download.

UNIDENTIFIED FEMALE: Customer service.

SAVIDGE: Knowing your customers?

JAN PACKWOOD, B&L BOOKS: Yes, being able to build rapport with them, knowing what they read and also our customers go way back as far as they've grown up in the store when they were children, the mother brought them in and then they come back and bring their children and it's sort of family-like.

(END VIDEOTAPE)

SAVIDGE: Kyra, all the experts we talk to say it's pretty much going to be a world that has both e-books and regular books in them. There are always going to be those who love the feel of a book and always those who like technology.

The reality is, this works without batteries. It also works under 10,000 feet and you can beat on it and it still continues to work for you, Kyra --

PHILLIPS: What exactly are you reading there? Is that one of your all-time favorites? Is that an all-time great?

SAVIDGE: It's just one of these kinds of sea adventure stories, big fan.

PHILLIPS: Another side to Marty Savidge. Thanks, Marty. Republican Governor Chris Christi pushes ahead on a program to dispense medical marijuana. Your political buzz is next.

Plus, protecting the Murdoch Empire. We're not just talking about Murdoch's wife's right hook.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories, the House may have passed Republican's cut, cap and balance act, but the deficit reduction plan is likely to die quickly in the Senate.

Maybe more hopeful to break the debt deadlock, a bill proposed by the Senate's bipartisan gang of six and supported by the president.

The heat wave that's broiled the middle of the country has stretched over to the east coast now. Excessive heat watches, warnings and advisories in effect in more than 30 states.

And a day after the Murdochs grilling by British lawmakers investigating phone hacking, Prime Minister David Cameron in the hot seat in a special session of parliament. He denied allegations his staff tried to block an investigation into the now defunct "News of the World" tabloid.

"Political Buzz," your look at the hottest political topics of the day. Three questions, 20 seconds on the clock. Playing today, Democratic strategist Maria Cardona, Sirius XM political talk show host and comedian Pete Dominick and CNN contributor and talk radio host Dana Loesch.

First question, guys, Michele Bachmann says migraines will not get in her way as president. Reagan had cancer operations, Kennedy was said to have malaria. So why should Bachmann's migraines matter? Dana.

DANA LOESCH, TALK RADIO HOST, "THE DANA SHOW": I don't think that they should. I think that this piece that's kind of circulating is nothing more than research trying to masquerade as journalism. She controls it with taking aspirin. There's a bunch of uncited sources. It's drama for drama's sake.

PHILLIPS: Maria?

MARIA CARDONA, DEMOCRATIC STRATEGIST: Well, I do think she needs to come clean a little bit more about how her condition affects her ability to do her job because clearly it has affected her ability to do her job.

But more than migraines, Kyra, I think what should scare every American is her brain and the political philosophies and public policies and ideas she would pursue if she would become commander-in- chief. That should be scarier to any American than any migraine.

PHILLIPS: I think I'm scared to hear what Pete's going to say. PETE DOMINICK, SIRIUS-XM POLITICAL TALK SHOW HOST: Well, first of all, Michele Bachmann could help out millions of Americans who's suffer from migraines by telling them what medicine she's using to control them.

But I'm definitely a lot more scared of Michele Bachmann's brain when it is functioning. But the truth here, Kyra, it doesn't matter at all about her migraine headaches because she has the same chance as I do of getting the nomination for president of the United States.

PHILLIPS: All right, Republican Governor Chris Christi pushes ahead on a program to dispense medical marijuana. Is the push to legalize pot beyond partisan politics? Maria --

CARDONA: Well, it should be beyond partisan politics because clearly, there is a role for medical marijuana for a lot of American who suffer from chronic pain. Unfortunately, I think for Christi and I think the reason it took him so long to approve the measure, it will be an issue politically if he decides to pursue higher office. It's not an issue that his base agrees with or the majority of Republicans in this country.

PHILLIPS: Dana?

LOESCH: actually, I think it is kind of. It's sort of a bipartisan issue. Honestly, the topic, we have the debt ceiling we're talking about right now. We have the war in Libya. We have stuff going on in Afghanistan. The president promised to bring home troops. Not going all the way through with his promise. I would love to see these issues tackled as opposed to this. I think there's definitely more weightier stuff.

PHILLIPS: Pete?

DOMINICK: Well, the truth is a lot of people think that this is an issue that the left or Democrats or liberals care more about. But President Obama hasn't made much movement on this and there's two Republican candidates for president, Gary Johnson and Ron Paul who are totally for decriminalizing and to some extent legalizing marijuana.

The fact is if two drugs give you pain relief and one will kill you possibly and be highly addictive and the other won't, which one do you want to take?

PHILLIPS: Your buzzer beater now, guys, 10 seconds each. If the gang of six plan actually helps cobble together a debt deal, what impasse task should they tackle next? Dana.

LOESCH: Well, cobbling together is the right word. I like the cap and balance plan. I think if we're truly serious about getting the debt under control, we need to pass it in the Senate and present it to the president for his signature. If he wants to veto it then we'll see. But this plan is a sham, does nothing to reduce taxes.

PHILLIPS: She went past 10 seconds. That means, Maria, two buzzes, three buzzes. You get an extra three seconds.

CARDONA: So I think they should help the president tackle unemployment next and raising the debt ceiling will go a long way towards doing that. They should then tackle the NFL lockout and lastly see if they can put together J. Lo and Marc Anthony's marriage.

PHILLIPS: Talks about political buzz. J. Lo and Marc Anthony. Pete, what happened? They were supposed to be the couple.

CARDONA: Right.

DOMINICK: I think J. Lo finally got a good look at Marc Anthony. Will that hurt my career? I think the next big impossible task they could tackle, Kyra, is the gang of six could head out capitol parking lot and move all the Democrats parking spots two spots to the right to match their political shift.

PHILLIPS: Pete, Maria, Dana, thanks, guys.

Great Britain, the political buzz is all about the Murdoch media scandal. This morning, Great Britain's prime minister faced a grilling and more than a few heckles when he appeared at a special session of parliament.

David Cameron has found himself increasingly tainted by claims he was just too cozy with the media empire and its leaders. Meanwhile the company shows signs of rebound. News Corp stock surged more than 5 percent while they testified yesterday before members of parliament.

In more simple terms, well, the company regained about $2 billion of its lost value. So investors showed support for Rupert Murdoch's performance by buying the company stock. Richard Roth looks at how the whole family is trying to protect this empire.

(BEGIN VIDEOTAPE)

RICHARD ROTH, CNN CORRESPONDENT: When Rupert Murdoch was attacked in London -- his family led by wife, Wendi rushed to his aid by going on the offense. During the hearing, father and son played defense with survival of the family business at stake.

JEFFREY TOOBIN, CNN LEGAL ANALYST: For Rupert Murdoch, the testimony was less about him than it was about preserving News Corp in the Murdoch family. He's on his way out, but he has got to keep control so he can pass it to James and his other children.

ROTH: Rupert Murdoch at times was glad to have James, his fourth child and deputy News Corp executive to take some of the heat.

RUPERT MURDOCH: I think my son can perhaps answer that in more detail. He was a lot closer to that.

ROTH: Before the scandal, James Murdoch was seen as a likely heir to the CEO chair.

JAMES MURDOCH: First of all, I would like to say as well just how sorry I am.

MICHAEL WOLFF, EDITORIAL DIRECTOR, ADWEEK: I think James is finished. I just don't think he has enough credibility left. The only thing is now whether he can stay out of jail, but he cannot run this company.

ROTH: Another son, Lochland Murdoch, was once seen as the heir before quitting in 2005.

TOOBIN: Murdoch is very devoted to his children but he's had a stormy relationship with them. Lachland Murdoch once seemed like the heir apparent, but had a falling out with his father and he's been off to Australia.

ROTH: Elizabeth Murdoch has denied reports she blamed her brother James or "News of the World" executive Rebekah Brooks for the damage the scandal has done to her father's company. She once started her own independent TV firm, only to be bought by her father for nearly $650 million.

VICKY WARD, WRITER, "VANITY FAIR": This is a man who cares so much about his legacy, he once said to me, all I want is for my kids to be decent people.

ROTH: They love their father, but keep an eye on replacing him when that day comes.

WOLFF: James very much -- very much wanted it. They have all wanted it. There was the period when Elizabeth wanted -- Elizabeth was the heir and that didn't work out. And then Lackland and James. So, actually this rather continues the pattern.

ROTH: Keeping it all in the family. Rupert Murdoch told his questioners about his late father buying a small newspaper, rooting out scandals.

RUPERT MURDOCH: Which I remain very, very proud of.

UNIDENTIFIED MALE: I think students of history are well aware of your family business.

RUPERT MURCOCH: I would love to se my sons and daughters follow, if they're interested.

ROTH: A hint from the father that the children may be less interested now that the company is embroiled in scandal.

Richard Roth, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Coming up, black farmers furious at Congresswoman Michele Bachmann.

(BEGIN VIDEO CLIP) MICHELE BACHMANN, REPUBLICAN PRESIDENTIAL CANDIDATE: When money is diverted to inefficient projects like the Pickford project, where this seems to be proof positive of fraud, we can't afford $2 billion in potentially fraudulent claims.

(END VIDEO CLIP)

PHILLIPS: Fraudulent claims? Well, the head of the black farmers' union weighs in on the historic settlement based on discrimination and financial loans.

And don't forget, if you're walking away from the TV, doesn't mean you have to stop watching. You can take me with you. You can take all of us with you, actually, depending on what hour you're watching. Just grab your iPod and check this out. CNN.com/video. Download the free app. And there you go. Streaming live. You can take us anywhere you want to go.

(COMMERCIAL BREAK)

PHILLIPS: Breaking news as we check in our stories "Cross Country." In Minnesota, things could get - or could be returning to normal after nearly three weeks of a government shutdown. Minnesota Mark Dayton just signed the budget bill as you can see, officially ending the 19-day government shutdown.

And in northeastern Ohio, near-record rainfall flooding out homes and roads. The storm also brought damaging winds and lightning. About 10,000 people left without power, and the Akron airport was also closed for a few hours.

And take a look at this. Lovely little dinner for three at one of Los Angeles' most exclusive dining spots. The middle of the 405 freeway. Mart Corrigan, his wife and a friend decided, hey, what the heck. Let's set up for dinner while the highway is closed for construction. So they did. Some folks in L.A. were calling it Carmageddon but the traffic nightmare never really materialized.

Congresswoman Michele Bachmann once again characterizing a settlement to black farmers as fraud.

(BEGIN VIDEO CLIP)

BACHMANN: When money is diverted to inefficient projects like the Pickford project, where this seems to be proof positive of fraud, we can't afford $2 billion in potentially fraudulent claims when that money could be used to benefit the people along the Mississippi River and along the Missouri River. And of course, that's Iowa.

(END VIDEO CLIP)

PHILLIPS; Fraudulent claims she says in a settlement to black farmers discriminated against in the '80s and the '90s.

John Boyd, president of the Black Farmers' union. John, she says that the Pickford settlement reeks of fraud. What do you say to that? JOHN BOYD, PRESIDENT, BLACK FARMERS' UNION: How you doing, Kyra? First of all, this case is not about fraud. This case is about black farmers who were discriminated against between 1981 and December 31st of 1996. We've proven our case in federal court.

And I just don't understand why people like Mrs. Bachmann and others on Capitol Hill continue to criticize this settlement. This is something that they continue to use to divide and conquer America. If they want to bring America together, the thing they're going to have to do is accept that black farmers had problems with the United States Department of Agriculture, and we need to make this thing right by paying settlement to eligible black farmers that of deserve these payments. They waited decades to receive these payments, Kyra.

PHILLIPS: And John, she continually talks about these numbers. You know, 94,000 claims of discrimination. Yet, there are only 18,000 black farmers in the U.S. Here's what she said back on the floor back in November.

(BEGIN VIDEO CLIP)

BACHMANN: How in the world, Mr. Speaker, can you have 94,000 claimants in addition to the previous 14,500 claimants if there were originally only 18,000 black farmers in the country? This is a simple math problem.

(END VIDEO CLIP)

PHILLIPS: My guess is not a simple math problem for you, John.

BOYD: No, it's not really. The case goes back to 1981, and thousands and thousands of black farmers made their case to the United States Department of Agriculture. This case has nothing to do with the census.

And Mrs. Bachmann and others seem to forget why blacks were in this country. We were in this country to farm. And we were slaves and we on to be sharecroppers, and many of us were lucky enough -- went on to buy and purchase land after the Civil War.

So many black farmers that are not counted by the U.S. census had problems dealing with the United States Department of Agriculture. This case says those who attempted to farm and farmed between 1981 and 1996, it didn't say you have to be counted by the census.

PHILLIPS: So, bottom line, you're saying you know, because black farmers couldn't get loans, because of discrimination, you've got a lot of family members, lots of generations here coming forward saying look, we deserve, you know, to get a piece of this settlement?

So, let me ask you, you know, when you listen to these statements and the fact that she keeps addressing this, I mean, how would you characterize her accusations? Do you feel that she's racist?

BOYD: Well, she's going to have a hard time proving to America that she's not racist if she continues to make these kinds of comments. And it's like what I said in the early part of the show. If she wants to be president of the United States, she's going to have to work with all people. And somewhere in there, all people include America's black farmers. And to continue to ridicule a group of people who have been victimized by the United States Department of Agriculture -- we've proven our case in federal court, there's been hearing after hearing. And I personally worked with Republicans on this legislation that the president signed into law back in December.

So, we went through every loophole that of the challenged and presented to America's black farmers and we're still being faced with a form of discrimination such as what Mrs. Bachmann is doing by continuing to ridicule persons who deserve justice in this country.

PHILLIPS: And once again, we'd like to make the point that we would have Michele Bachmann on live at anytime to discuss this issue. John Boyd, president of the Black Farmers' union, thanks for your time today.

BOYD: Thank you, Kyra.

PHILLIPS: Coming up, the NBA's tallest player makes a big decision. Yao Ming retiring. We'll have a live report from Beijing.

(COMMERCIAL BREAK)

PHILLIPS: Time now for "The Big Play" and good news for Texas Ranger fans. He was the number 1 draft pick by the Houston Rockets in 2002 and he's only 30 years old, but Yao Ming's decided to retire from the NBA. He helped the league score millions of fans in Asia. Commissioner David Stern even called him a transformational player. As for advertisers, well, they just called him.

(BEGIN VIDEO CLIP)

(SPEAKING IN FOREIGN LANGUAGE)

ANNOUNCER: Reebok, Pepsi, Gatorade --

(END VIDEO CLIP)

PHILLIPS: Yao's popularity and appeal still strong. Unfortunately, his body's not. Serious foot and ankle problems prompted the decision to retire.

And Stan Grant joins us live from Beijing. Stan, e was an all- star in the NBA but a superstar in China. What's the reaction to his retirement there?

STAN GRANT, CNN INTERNATIONAL CORRESPONDENT: Yes, a lot of sadness. This isn't unexpected. It's been rumored now for the past few weeks. So, really this was an official announcement of what everyone really probably already knew.

You mentioned there, Kyra, this injury. He's carried foot and ankle injuries throughout his career. He first broke his foot when he was still a teenager and never really got over that. That's probably hampered his legacy on the court or as you say, eight times he played for in the NBA All-Stars game. So, certainly he made his presence felt four times, went to the NBA playoffs with the Rockets. So he really was a significant player.

What was really interesting about Yao Ming though is the time that he came along. He was a champion for the times. For the Chinese people, he was one of their own, going to the United States, taking them on at their own game and really standing up and being counted. At the same time, his rise and his success paralleled the rise of China. China's economy emerged as the second-biggest economy after the United States in the world and really established China as a world power.

And it was also timely for Yao Ming because as you say, the advertisers all came calling. This was a man who was a brand, a billion-dollar brand, representing so many of these big advertisers, big companies around the world. And a transformational figure, as David Stern said today, a figure able to bring hundreds of millions of people to the game and really cast a very long shadow. And now by leaving the game, leaves a very big hole both here in China and also for the NBA.

PHILLIPS: Stan Grant, live from Beijing.

Coming up, it sounds like something from the "Men In Black" movies, the Fourth bureau. But this little-known credit agency could be what stands between you and your next loan.

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PHILLIPS: So, what if things like paying your gym membership on time or magazine subscription you forgot about kept you from getting a car or home loan? Well, it's actually becoming more of a reality.

Alison Kosik at the New York Stock Exchange to explain why. Alison?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It's because of this very mysterious Fourth bureau we've all heard of Equifax, Experian, Transunion. They're household names. These are the big three credit bureaus that keep track of our loans, establish our credit score.

How about this fourth bureau? What this is is this group of lesser known companies, and they track many of the financial moves that you make. And it's got a hand in determining whether you qualify for a loan.

Now, "The Washington Post" rounded up some of the bills it is monitors, everything from rent payments and magazine subscriptions to cable bills, gym memberships and those payday loans. But the problem with this is, if the information they have the isn't right, it could keep you from getting a loan. In fact, one woman tells The Post it kept her from buying a dishwasher of all things, Kyra

PHILLIPS: So this is clearly worrisome for all of us. But who do you think is most at risk from this fourth bureau? KOSIK: Well, it's mostly students, immigrants, low-income people. About 30 million people all together without access to basic financial services. So, you know, they depend on this fourth bureau for information to get them a loan. And that could be a good thing once again if the information is correct. But if you've missed payments or the information isn't correct, these people can't move forward.

Now, if you want to keep track of what your credit is looking like with this fourth bureau, what this bureau does, it charges 11 bucks for its files. But the new consumer protection laws allows people who've been denied credit to get one of these reports for free. Kyra?

PHILLIPS: All right, well, Wall Street got a pretty nice boost yesterday from President Obama and the Gang of Six. Any follow- through today?

KOSIK: It did.

Not seeing much follow through. Watching stocks drift a little lower. Investors are waiting for this debt ceiling deal to come to light. We also got a disappointing housing report. But we are watching Apple shares. It had a blowout quarter thanks to strong sales for the iPhone and the iPad. Shares right now up $388 a share. If only I would have gotten in at $25.

PHILLIPS: We've said that about everything. Said that about Apple back when the computers were - yes. Alison, thanks.

Well, in this economy, it can be pretty tough to find a job. We know that. But now is your chance to be seen and heard. You can give your 30-Second Pitch right here on air. Tell us why someone should hire you. Send us an e-mail, 30SecondPitch@CNN.com, and you may get a chance to make that pitch right here on the CNN NEWSROOM at 10:00 a.m. Eastern.

All right, checking stories making news today is. Gabrielle Giffords' staff and members of Gabe Zimmerman's family will be on Capitol Hill for a press conference. Zimmerman worked for Giffords and is the first congressional staff member to ever be killed in the line of duty.

A Los Angeles county judge will consider a prosecution request to delay the start of the involuntary manslaughter trial of Michael Jackson's doctor. They want another three weeks to prepare. That trial has already been delayed twice since Conrad Murray's arraignment in January.

And the Army psychiatrist charged in the deadly Fort Hood shootings will be arraigned today. It's his first courtroom appearance since being told he would face the death penalty. Nidal Hasan is accuses of killing 12 people and injuring 31 others at Fort Hood in November of 2009.

Well, if you've ever had a migraine, you know it hurts and it can even take you out of action. Presidential candidate Michele Bachmann actually suffers from migraines. She came out yesterday to talk about that. So severe, she says, they actually send her to the hospital.

Medical correspondent Elizabeth Cohen here to talk about the fact that can they really incapacitate you to that point where you've got to go to the hospital?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Migraines can (ph), so let's talk about what we know about Michele Bachmann's migraines. Because really it's not necessarily very much, and you're not quite sure what you should believe or what you shouldn't.

So, "The Daily Caller" quotes these former aides, who say she had migraine episodes about once a week and that they could incapacitate her for days. Now, Bachmann says yes, I do suffer from migraines but it is not nearly as bad as all that. Let's listen to what she has to say.

(BEGIN VIDEO CLIP)

BACHMANN: I'm prescribed I medication that I take on occasion whenever symptoms arise, and they keep my migraines under control. But I'd like to be abundantly clear. My ability to function effectively will not affect my ability to serve as commander in chief.

(END VIDEO CLIP)

COHEN: Now, Cheryl Stoleberg, a New York Times reporter, she talked to her son who is a physician. And he said look, yes, at least twice, she's had to seek emergency care while traveling. And he said she's probably not going to run a mile, but he said she is - she is -- can assess information, comprehend information. All of that is fine.

PHILLIPS: Got it. All right, Elizabeth Cohen, we'll continue to track it, of course, also as the campaign continues. Elizabeth, thanks.

Republican senator and the Gang of Six talks to us about compromise and civility. Next hour, we're going to ask Senator Crapo if there's enough time to hammer out a deal.

Plus, illegal immigrants discover a new way to zip across borders. The dangers of their journey ahead.

And a new poll of GOP hopefuls has one gaining ground and another firmly in place. We'll take you live to Washington for our Political Ticker.

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PHILLIPS: Topping our Political Ticker this hour, all this deficit and debt ceiling talk. Well, it's coming with a cost. And some lawmakers may pay a very high price when election time rolls around.

CNN White House correspondent Brianna Keilar live in Washington with more. Brianna?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Hi there, Kyra. You know, I guess we're not surprised that voters are frustrated with how Washington is handling debt negotiations, and kind of everything. A new Washington Post/ABC News poll shows that eight out of 10 Americans surveyed were either dissatisfied or outright angry about how the federal government is working. This is the highest since the 1990s. And furthermore, 63 percent of them said they may look around to elect new representatives come November 2012.

A lot of poll numbers out. You can check them on the CNN.com/ticker. The political ticker. Also new numbers there from the "Wall Street Journal" poll on what people think of how the president is leading the country. Not so great numbers for him.

Also on the ticker, the RNC is targeting Hispanic voters in three key states: Nevada, New Mexico and Colorado, states that President Obama won just by single digits in the last presidential election. They're also going, now they've put out an ad and going to be putting out a Spanish-language ad. And the thought is maybe they can make some headway because while unemployment is at about 9.2 percent overall in the U.S., for Hispanic Americans it's higher at 11.6 percent.

And then also something of note that we learned during the briefing yesterday from White House press secretary Jay Carney. It appears the president is kind of coming a click closer towards endorsing even more rights for same-sex couples. Carney saying the president supports something called the Respect for Marriage act. This is a bill going through the Senate, through the committee process right now. It's an outright repeal -- that's what it proposes of the Defense of Marriage Act, which is the same-sex marriage ban. And Kyra, we'll be watching this and we're going to have a story shortly because this hearing is going on right now. It's the first hearing of any legislation that would outright repeal the Defense of Marriage Act.

PHILLIPS: Yes, we're watching it here, too. Brianna Keilar, live from the White House. Brianna. thanks.

We'll have your next political update in just an hour. And a reminder, for all the latest political news, you can always go to our Web site, CNNpolitics.com.

That does it for us. Fredricka Whitfield in for Suzanne Malveuax here in Studio 7.

FREDRICKA WHITFIELD, CNN ANCHOR: Good to see you!

PHILLIPS: Good to see you.

WHITFIELD: Trying to stay cool today. It's hot out there. Already!

PHILLIPS: Yes, it is.

WHITFIELD: All right, thanks so much, Kyra.