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British PM in Parliament Over Hacking Uproar; Don't Count on Calorie Counts; 'Gang of Six" to the Rescue; Interview With Senator Mike Crapo; Wendi Murdoch's Save; Getting a Deal on a New Car; The Future of Bookstores After Borders
Aired July 20, 2011 - 10:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Hello again, I'm Fredricka Whitfield live in Studio 7 in for Suzanne Malveaux. Let's get you up to speed for this Wednesday, July 20.
A report out of Britain's Parliament today comes down hard on London's police and "News of the World" owner, News International. Parliament looked at Scotland Yard's initial phone hacking investigation back in 2005 and 2006.
The report rips the chief investigator, who left the police force and eventually took a job at News International. It slams News International for its, quote, "deliberate attempts to block police."
Prime Minister David Cameron called Parliament into special session to discuss the phone hacking scandal. Cameron and his predecessors have been criticized for their ties to News Corp. Chairman Rupert Murdoch and the people who run his London media operation.
(BEGIN VIDEO CLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: --the public expects is not petty political point-scoring but--
(JEERS, BOOS)
CAMERON: 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)
WHITFIELD: In this country, a new debt ceiling compromise seems to be getting traction in Washington. Six senators-- three Republicans, and three Democrats-- are offering a plan to cut the nation's debt by about $3.7 trillion over the next decade. It includes spending cuts and about a trillion dollars in new tax revenue. Republicans have insisted on deep cuts and no tax increases before they'll agree to raise the country's borrowing limit. That debt ceiling deadline is now just 13 days away.
Minnesota's three-week government shutdown is over. Democratic governor Mark Dayton signed a budget bill today. He and Republican lawmakers finally agreed to use accounting gimmicks to close the state's $5 billion shortfall. Republicans refused to raise taxes. The shutdown left 22,000 state workers without a paycheck.
And Memphis public schools may not open August 8th, as scheduled, because of a budget fight. The school board says no classes until the city pays $55 million. The board says the city owes that much in tax revenue for upcoming school year. The board claims the city has shortchanged schools for years.
(BEGIN VIDEO CLIP)
SARA LEWIS, MEMPHIS CITY SCHOOLS COMM.: Someone has to assume responsibility for the collective education of the children in the city of Memphis. And I don't think that City Council can be exempt from that responsibility.
MARTAVIUS JONES, MEMPHIS CITY SCHOOLS COMM.: I'm all in support of us having assurances and money in the bank. But I think that 55 was just an unreasonable amount to expect at this particular time.
(END VIDEO CLIP)
WHITFIELD: and France is raising the prospect of Moammar Gadhafi staying in Libya, on two conditions. French foreign minister Alain Juppe says Gadhafi would have to give up power and agree to keep out of Libyan politics. Until now, NATO nations, including the United States, have insisted Gadhafi must leave the country.
Human rights activists say Syrian troops gunned down perhaps as many as 10 people during a funeral for protesters. It happened Tuesday in the city of Homs.
Mourners scattered when gunfire erupted. Residents tell Reuters that troops and armored vehicles have moved into every neighborhood in Homs. Syrian forces have been trying to crush the uprising in several cities since it began in March.
American Airlines is acquiring a whole bunch of new planes. The company says it has ordered 460 jets from Boeing and Airbus. This is the first time in two decades Europe's Airbus has sold planes to the airline. American says the $20 billion deal will create the youngest and most fuel-efficient airline in the U.S.
Excessive heat warnings, watches or advisories are posted across 32 states today. That dome of hot air parked over the center of the country is only going to grow. Intense heats will spread out of the Midwest and invade the Eastern Seaboard today, and it's going to hang around, as well. Extraordinarily high humidity will make temperatures feel like 120 degrees in many cities.
OK, so here's your chance to talk back on one of the big stories of the day, the debt talks. Today's question: What's the solution to the political stalemate? Carol Costello has more.
CAROL COSTELLO, CNN CORRESPONDENT: Oh, you're scratching your head over that one, aren't you, Fredricka!
(LAUGHTER)
WHITFIELD: It's not an easy one.
COSTELLO: Oh! It's not an easy one at all. The never-ending debt ceiling debate-- you know the players-- Obama, Boehner, Cantor, Biden, the "gang of six," the Tea Party. And generally speaking, you don't like them that much, not necessarily because most Republicans don't want to raise taxes or most Democrats want to protect entitlements, but because they just can't get it together, as in compromise, as in "Let's make a deal," and Americans are sick of it.
According to an ABC News/"Washington Post" poll, fully 80 percent of voters-- 80 percent!-- are now dissatisfied or angry about the way the federal government is working. Lawmakers are aware of how you feel. Really, they are. So what are they doing about it? They're calling each other names. Democrats rolled out a video campaign citing Ronald Reagan's long-ago plea to raise the debt ceiling as an adult moment.
(BEGIN VIDEO CLIP)
RONALD REAGAN, PRESIDENT OF THE UNITED STATES: The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility, two things that set us apart from the much of the world.
(END VIDEO CLIP)
COSTELLO: There, that's an adult moment! You see what the Democrats are going for, don't you? Some Republicans are much more direct. Congressman Allen West sent an e-mail to Democratic Congresswoman Debbie Wasserman Schultz. Here's the e-mail. West called Wasserman "the most vile, unprofessional and despicable member of the U.S. House of Representatives." Why? Because they disagree over the Republican-backed "cut, cap and balance" bill. And you thought things were going to get better after the mid-term elections, when voters voted out so many incumbents!
So the "Talk Back" question today: When it comes to the debt ceiling, what is the solution to the political stalemate? Facebook.com/CarolCNN, FaceBook.com/CarolCNN. I'll read some of your comments later this hour.
WHITFIELD: That's the trillion-dollar question. Thanks so much, Carol.
(LAUGHTER)
WHITFIELD: Appreciate it. We'll check back with you.
OK, here's a rundown of some of the stories we're covering right now. First, Britain's prime minister goes toe to toe with Parliament over the hacking scandal. And the big, fat truth about your favorite guilty pleasures and restaurant calorie counts. Then a Republican senator in the "gang of six" talks compromise and civility, how his group found common ground in the debt ceiling talks.
And later, does the death of Borders book store signal the end-- or the beginning, rather, of the end for all book stores? These owners don't think so.
(BEGIN VIDEOTAPE)
JAN PACKWOOD, B&L BOOKS: Our customers go way back, as far as they've grown up in the store when they were children, their mother brought them in, and then they come back and bring their children. And it's sort of family-like.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
WHITFIELD: British prime minister David Cameron was on the defensive and firing back at members of Parliament this morning. They're critical of Mr. Cameron's close ties to top figures in the phone hacking scandal that has rocked his country. The prime minister's former communications director was once editor of the tabloid at the center of the scandal.
(BEGIN VIDEO CLIP)
DAVID CAMERON, BRITISH PRIME MINISTER: Of course, I regret and I am extremely sorry about the furor it has caused. With 20/20 hindsight and all that has followed, I would not have offered him the job, and I expect that he wouldn't have taken it. But you don't make decisions in hindsight!
ED MILIBAND, LABOUR PARTY LEADER: It's not about hindsight, Mr. Speaker! It's not about whether Mr. Coulson lied to him. It is about all the information and warnings that the prime minister ignored! He was warned, and he preferred to ignore the warnings.
(END VIDEO CLIP)
WHITFIELD: That exchange in today's Parliamentary session follows yesterday's appearance by Rupert Murdoch. He testified before a Parliamentary committee. The billionaire businessman denied any prior knowledge of phone hacking in his massive media empire.
All right, let's go straight to London now. CNN senior international correspondent Dan Rivers joins us. So Dan, let's begin with the prime minister, Cameron's grilling today. He's accuses of having been a little too cozy with Rupert Murdoch and his executives. Is the prime minister's job on the line here?
DAN RIVERS, CNN CORRESPONDENT: I don't think it is at the moment yet, until and unless there are more evidences produced by the opposition Labour Party that could prove, for example, that David Cameron was talking to News International, Murdoch's company here, about the BSkyB takeover, something that he should not have been talking to him about.
Now, we know that he had various conversations, we're told, with Rebekah Brooks, the chief executive, but we're told that they were appropriate. We don't know what the content is yet. So I don't want to get too bogged down in the detail, but the short answer is, no, not at the moment. I don't think anyone's talking about him being in a perilous position yet.
But this is slowly, incrementally getting closer and closer to Downing Street's door, and it is very, very awkward for the prime minister. It's taken up a lot of his time. It's put him in a difficult position. I think he's desperately hoping, after today's combative exchanges in the House of Commons behind me, this will be a line drawn under it. It will then go back to the police inquiry. This lot-- the politicians in there will be off on their summer holidays, and I would think David Cameron will be hoping that this will be off (ph) his initial sort of entree (ph), if you like, for the summer and that he can concentrate on other things.
WHITFIELD: So Dan, let's revisit Rupert Murdoch's testimony, refusing to take any responsibility for this phone hacking scandal. Take a quick peek.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Mr. Murdoch, do you accept that, ultimately, you are responsible for this whole fiasco?
RUPERT MURDOCH, NEWS CORP. CHAIRMAN: No.
UNIDENTIFIED MALE: You're not responsible? Who is responsible?
MURDOCH: The people that I trusted to run it and then maybe the people they trusted.
(END VIDEO CLIP)
WHITFIELD: So what has been the overall reaction there?
RIVERS: Well, I was in the room with Rupert and James Murdoch. And it was excruciating at times, the pregnant silences, the pregnant pauses that followed the specific questions from politicians thrown to Rupert Murdoch, and suddenly, there would just be nothing.
Now, we talk about it as sort of characteristic trademark of Rupert Murdoch, but when you hear it in the flesh, it was pretty uncomfortable. And I think the general impression that was given off by Rupert Murdoch was of a man who just was not on top of the detail of all this. He was not-- did not have a grip of his company, has not got a grip of this crisis.
He appeared badly briefed and badly prepared. And his son, James, was constantly trying to leap in and help him out with the specific questions which were constantly delivered to Rupert Murdoch because it's Rupert Murdoch, the father, who is responsible for corporate governance of News Corporation. So I don't think it was a great day for the Murdochs, but they got through it. And as you've seen, their share price is now recovering, perhaps shareholders thinking they're through the worst of it.
WHITFIELD: So Dan, I wonder what's next now? You had this testimony before Parliament. You hear from the prime minister today. And then there's the separate police investigation. Why does this testimony before Parliament even matter? Where does it go?
RIVERS: Well, I think that the next thing that's going to happen is that this police inquiry is going to continue to roll on through the summer and that we could see more arrests, we could see more evidence coming out. We might get more interesting details about whose phones were hacked, about which individuals in News International are alleged to have been responsible.
Don't forget also that a lot of these people that have been arrested, like Rebekah Brooks and so on, haven't actually been indicted or charged yet. They've just arrested and released on police bail. So we may get some developments on that front, as well. It's all fascinating stuff, but it's got a long way to go yet.
WHITFIELD: All right. Dan Rivers, thanks so much, from London. Appreciate that.
All right, time now for a cross-country look at some of the other stories we're following. Police in Montgomery, Alabama, have made the biggest cash seizure on record in that city. They pulled over an 18- wheeler after the driver made an illegal lane change and found more than $1 million hidden in the cargo. And if it turns out that the money was being used for something illegal, then police can keep 80 percent of it for crime fighting.
And this is pretty hard to believe. But it did. In California, a tiny but very powerful crime fighter, as you see right there-- his name, Paco, Paco the Chihuahua. Well, he's the talk of the town after chasing armed robbers, as you see right here in this surveillance tape-- chasing them out of this shop in Altadena. He nipped at their ankles, chasing them right across the street.
And then on to Ohio, where heavy rains flooded roads and neighborhoods. Parts of the state got as much as four inches in just a short time. The storms left tens of thousands of homes and businesses without power.
So while the country's mid-section doesn't need floods, it could sure use some rain to try and cool things down. An intense heat wave is on, locking into 30 states. Jacqui Jeras with us now. It is an unbearable summer.
JACQUI JERAS, CNN METEOROLOGIST: It really is. I mean, it's downright deadly, dangerous, like you mentioned. About 13 people have died in the Midwest now, unfortunately, being (ph) succumbed to this heat. I mean, the heat index yesterday in parts of Minnesota up to 129 degrees. WHITFIELD: That's unbelievable.
JERAS: So yes. I mean, nobody can stand it.
WHITFIELD: For any state, but especially--
JERAS: Yes, where they're not--
WHITFIELD: --for Minnesota.
JERAS: --quite used to that kind of heat. Take a look at this animation I have for you. This is from NOAA. And this really helps to put things into perspective. This starts on July 13th, and watch as that heat just grows and expands across the Midwest, really intensifies across the southern plains states, then slowly starts to shift its way off towards the east. And that last image you just saw there showed you the heat finally beginning to move out of the upper Midwest. And that's going to happen by tomorrow.
In the meantime, take a look at this. It feels like 95 in Minneapolis already. It's 10:00 o'clock in the morning here, 90 up in Fargo, North Dakota, 93 in Cedar Rapids, 97 degrees is the temperature your body feels in Chicago.
Here are all those advisories that we've been talking about in the nation's midsection. But now we're going to see some changes. All this heat's going to start to shift eastward. We'll watch for relief in the upper Midwest by tomorrow, but it's the Northeastern corridor that's really going to feel the brunt of this for the latter part of the week. We're talking 141 million people under advisories, a million square miles across the country.
WHITFIELD: That's huge.
JERAS: So that's so many people being impacted by this heat. It's all anybody's talking about.
WHITFIELD: Yes, drink a lot of water and stay cool and--
JERAS: Yes. That's how--
(CROSSTALK)
WHITFIELD: I know. I'm trying. I'm trying.
(LAUGHTER)
WHITFIELD: All right, thanks so much. I know you're not counting calories, Jacqui, but a whole lot of people are. Well, don't count those numbers on the restaurants' Web sites apparently. You may be getting more than you bargained for-- more calories, that is.
(COMMERCIAL BREAK)
WHITFIELD: OK, you're watching what you eat, so you check the calorie counts on the restaurant Web sites, right? Well, guess what? What you see may not be what you get, or vice versa. Researchers at Tufts University say they were shocked at how inaccurate the information was on restaurant Web sites. The story from senior medical correspondent Elizabeth Cohen.
(BEGIN VIDEOTAPE)
ELIZABETH COHEN, CNN CORRESPONDENT (voice-over): Lorien Urban is on a secret mission, and it has to do with what's in this bag. She's a nutrition researcher, and restaurants don't know she's checking up on them.
Back at her lab at Tufts University, Urban grinds up the food, turns it into a powder and analyzes it to find out how many calories there are.
LORIEN URBAN, RESEARCHER, TUFTS UNIVERSITY: The sample we're going to take to actually put in the bomb (ph) calorimeter needs to be a representative sample of the entire dish.
COHEN: She found that one in five restaurant dishes has at least 100 calories more than what the restaurant says it does. That means when you look on the restaurant's Web site, you can't always believe what you read.
SUSAN ROBERTS, RESEARCHER, TUFTS UNIVERSITY: One food had more than a thousand calories more than it was supposed to-- more than a thousand more! It was just shocking.
COHEN: Urban and her colleague, Susan Roberts, wrote up their findings in this week's "Journal of the American Medical Association."
ROBERTS: It's enormous. It's enormous. It shouldn't happen.
COHEN: Several restaurants had dishes with a calorie count in the lab higher than what was on the restaurant's Web site, including Chipotle Mexican Grill, where a burrito bowl had 249 more calories. The chicken and gnocchi soup from Olive Garden had 246 more calories. And a chicken dish from Boston Market, 215 more calories.
ROBERTS: I think restaurants have got a lot to answer for here.
COHEN: The National Restaurant Association points out that on average, the calorie counts given by the restaurants are accurate. Chipotle and Olive Garden told us their dishes are hand-prepared and cooked from scratch, which means calories may vary. Roberts says those extra calories add up.
ROBERTS: If you have 100 calories more than you think every day, just 100 calories, that's something like 10 or 15 pounds of extra weight you gain over the course of a year.
COHEN: Ten to fifteen pounds! And unless you have a lab, you'd never know why.
(END VIDEOTAPE)
WHITFIELD: All right, Elizabeth Cohen joining us now. OK, this makes me feel terrible because I think I'm--
COHEN: Right. You're doing the right thing.
WHITFIELD: --helping myself out by getting a salad in particular. But that could be wrong, too.
COHEN: Well, right. The salads actually were the ones that were most prone to be wrong. So for example, this side salad from Outback Steakhouse with bleu cheese dressing-- Tufts says that it was about 600 calories off.
WHITFIELD: Because of the bleu cheese? Because that's what I always ask for. I love bleu cheese.
COHEN: That really could be why, is that--
WHITFIELD: Oh, man!
COHEN: --they put too much bleu cheese on or-- take a look at--
WHITFIELD: Get it on the side.
COHEN: You got your bacon bits and your cheese, and you know, there's quite a bit in there. Outback says that Tufts might have goofed and ordered the entree salad instead of the side salad. But Tufts says, No, we know how to order. It's the side salad and it was wrong.
WHITFIELD: OK, so what are we to do? What do we do when we go out to eat?
COHEN: Well, you know what? You just said, three little words, "on the side." Right? For this salad, for example, if you ordered the dressing on the side and if you ordered the cheese and the bacon on the side, you can make sure that you're not sort of at someone's whim. Like, what if someone throws an extra handful of bacon bits and an extra handful of cheese?
WHITFIELD: Right.
COHEN: That's a lot more calories.
WHITFIELD: All right. They're in a hurry back there. They're just tossing it and--
COHEN: Right. Exactly.
WHITFIELD: --throwing the stuff on it--
COHEN: Put yourself--
WHITFIELD: --not measuring, maybe.
COHEN: --into control. Be an empowered eater.
WHITFIELD: OK. I like that! All right, Elizabeth Cohen, thanks so much.
COHEN: Thanks.
WHITFIELD: I'll still order the salads, though.
COHEN: OK. On the side!
WHITFIELD: All right, so here's a look at today's "Choose the News" stories. You can vote for the story you want to see next hour.
First, he calls himself the godfather of China's growing hacking world and even claims to have shut down the White House Web site. Now he describes why he's training a new wave of hackers to hit other sites around the world.
And then second, it's a new way to pay for something without bills, coins or even credit cards. It's called Bitcoin, a virtual currency that doesn't abide by the rules of a bank or a government.
And then third, a closer look at a girls' soccer team that made headlines well before the U.S. women's World Cup run. Meet the team nominated in 2008 by "Sports Illustrated" as the "Sports Team of the Year" and hear the ultimate goal.
You can vote by texting 22360. Text 1 for Chinese hacker, 2 for Bitcoin currency, or 3 for girls' soccer goal. The winning story airs next hour.
All right, a compromise debt-reducing plan may be gaining momentum. It's from the so-called "gang of six." I'll go one on one with a member of the "gang" to talk about the plan.
(COMMERCIAL BREAK)
WHITFIELD: Here's a rundown of some of the stories we're working on. Up next: They call themselves the "gang of six," and this bipartisan group of senators may have finally found a way to bust through the debt debate gridlock.
Then Rupert Murdoch's wife doesn't just stand by her man, she comes to his rescue. We'll take a closer look at News Corp.'s fascinating first lady.
And later: It's not just the mom and pop stores anymore. Now a huge name in books is going under.
The clock is ticking in the search for a deal to raise the country's debt ceiling. While the debate goes on, a Republican plan to reduce the deficit passes the House, but it has little chance of making it through the Senate. Republicans call it "cut, cap and balance"-- cut spending for next year, cap future spending and pass a balanced budget amendment to the Constitution. Even if the bill were to clear the Senate, the president has promised to veto it.
Meantime, President Obama has high praise for another debt- reducing plan. It's a compromise put together by a bipartisan group of senators known as the "gang of six." The plan would reduce the nation's debt by $3.7 trillion over the next 10 years. In the near term, it would cut spending by $500 billion. The proposal would also reform the tax code. Some tax breaks would be eliminated and the number of tax brackets would be reduced from six to three.
So the so-called "gang of six" plan has been in the works for months now, but the stalemate over the debt ceiling may have given it new momentum. Senator Mike Crapo is a Republican member of the bipartisan group behind this plan. He joins us now from Capitol Hill. Good to see you.
SEN. MIKE CRAPO (R), IDAHO: Good morning.
WHITFIELD: OK, so this has been in the works since January. So far, what is the reaction from fellow senators?
CRAPO: We've had a very, very positive reaction from both Republican and Democrat senators. In fact, we put out our ideas yesterday, and almost 50 senators, half of the Senate, showed up. And I think to a person, almost, they were very positive about it.
WHITFIELD: So it's interesting because, you know, Mr. Boehner says that this "gang of six" plan, quote, "shares some-- many similarities" with the far-reaching strategy that he had been pursuing with the president. Why might this be a more successful measure than what the president and other leaders were working on from the White House?
CRAPO: Well, for one thing, we are building a bipartisan basis for it in the Senate. If the president and Republican leaders can also build that bipartisan support, then I think the two could come together, the two ideas could come together, and form the foundation for a very big step for America.
I should say, though, that from what I understand of the negotiations that are going on at the White House, our proposal is two or three times larger in its scope, and it's much more comprehensive. It puts everything on the table, dramatically reforms our tax code and makes America a much more competitive and dynamic economy, and gives us kind of broad-based approach to reform of entitlements and spending processes across the board that I don't think were in those discussions. I hope they will be now, though.
WHITFIELD: So, you mentioned larger and more comprehensive, which might underscore why Senate Majority Leader Harry Reid is questioning the timeline -- whether there is enough time to try and get this through.
CRAPO: That's a valid question. As we put this together, we never intended this to be a part of the debt ceiling battle. That's kind of a subset of the much bigger issue of our debt crisis.
Our proposal is a -- like I say, a comprehensive bipartisan proposal to deal with the debt crisis. And it's a fair thing to say that it's sufficiently comprehensive and complex that it may take some time to move forward. Parts of it may be able to be used in the debt ceiling battle, but ultimately, we need a much broader, bigger and more comprehensive approach to dealing with our nation's most serious problem right now, which is our debt.
WHITFIELD: So what he specifically is it about this measure that you feel with great relief and security, feeling that this is going to mean that the U.S. would avert a real crisis?
CRAPO: Well, what this plan does is put everything on the table as I have said. It has major reforms of entitlements. It saves Social Security from imploding. It controls discretionary spending.
It creates an enforcement mechanism that stops Congress from bypassing or finding loopholes around budgets. And it reforms the tax code in a way that reduces rates dramatically but grows the economy -- and therefore, generates greater revenue through greater economic activity.
WHITFIELD: Well, you mentioned --
CRAPO: That's the approach we need.
WHITFIELD: You mentioned Social Security. But is Social Security likely to get some cuts under this measure, as well as Medicare and defense spending?
CRAPO: Well, I should say, Social Security will not be utilized as a part of the solution to our debt crisis. We are proposing reforms to Social Security on a separate track simply to save Social Security from the wall that it's going to hit in about 20 years.
And what we will do is actually stop Social Security recipients from seeing about a 22 percent cut if Social Security becomes insolvent. And yes, with regard to entitlements and defense spending -- all of that is on the table, as a part of the reduction in spending in Washington that's necessary to control our spending side of the equation.
WHITFIELD: Senator Mike Crapo, thanks so much for your time.
CRAPO: Thank you.
WHITFIELD: And here's a reminder to vote on the story that you want to see next hour, you can text your vote to 22360. Text 1 for Chinese hacker -- hear from the godfather of China's hacking world on why he's training others to follow in his footsteps. Text 2 for bitcoin, the virtual currency that doesn't abide by rules of a bank or government. Or text 3 for the unique girls soccer team that made headlines well before the U.S. women's World Cup team did.
The winning story airs next hour.
(COMMERCIAL BREAK)
WHITFIELD: Even in slow-mo, it happened quicker than you can say banana cream pie. A man lunges at Rupert Murdoch in parliament with a plateful of shaving cream. Watch it right there. The pie eater is now facing criminal charges. The pie-eater? Well, maybe a little sympathy.
But not from the late-night comedians.
(BEGIN VIDEO CLIP)
CONAN O'BRIEN, "CONAN": You know, Rupert Murdoch, he's having a terrible time lately. He's got this whole phone-hacking scandal and his whole empire is in trouble. Well, today, while testifying in parliament, Rupert Murdoch was attacked by a man who threw a pie and yelled insulting names. Threw a pie and insulting names -- yes, Murdoch immediately gave the man his own show on FOX News.
(LAUGHTER)
O'BRIEN: I would watch that show, wouldn't you?
(END VIDEO CLIP)
WHITFIELD: So, that pie in the face moment has put the spotlight on Murdoch's much younger wife Wendi. She pounced to defend her man when he came under attack.
CNN's Jeanne Moos reports on her volleyball spike.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT (voice-over): Wendi Murdoch was easy to pick out in pink. When you're 38 years younger than your husband, it's nice to rub his back and pour him water before he testifies. She even restrained him when he pounded the table too much.
But she didn't restrain herself when this happened. An activist pulled a foam-filled plastic pie plate out of a plastic bag. Some of that foam landed on CNN producer Jonathan Wald as the attacker --
UNIDENTIFIED MALE: Plunges it squarely into the face of Rupert Murdoch.
MOOS: And that's when his wife Wendi whacked the guy, even picked up the plate.
UNIDENTIFIED MALE: Hit him back with it. It was all extremely dramatic.
MOOS: Sort of reminds us of the woman who used her purse to try to knock the gun out of a hostage taker's hand --
UNIDENTIFIED MALE: No! No!
MOOS: -- at a school board meeting.
UNIDENTIFIED FEMALE: This is the weapon.
MOOS: Apart from shaving cream, all Rupert Murdoch got was a tongue-lashing from his attacker.
UNIDENTIFIED MALE: "You're a greedy billionaire."
MOOS: The activist, who British media identified as Johnny Marbles, had just sent a tweet saying, "It is a far better thing that I do now than I have ever done before," hashtag splat.
(on camera): It may have been more than a close shave for Rupert Murdoch, but at least he avoided major embarrassment by getting his face full off camera.
(voice-over): Unlike pie targets like Ann Coulter, and Ralph Nader, who managed to throw his pie back at his attacker -- Bill Gates got splattered and then his image got splattered for eternity all over the Internet. Anita Bryant got pied by a gay demonstrator.
ANITA BRYANT, GAY RIGHTS OPPONENT: Every --
UNIDENTIFIED MALE: Oh!
BRYANT: Well, at least it's a fruit pie.
UNIDENTIFIED MALE: Let's pray. Let's pray for him right now.
MOOS: First her husband prayed for the attacker. Then he went outside and splattered him back.
Wendi Murdoch was praised by a member of Parliament.
UNIDENTIFIED MALE: Your wife has a very good left hook.
MOOS: Or was it her right?
Regardless, a prankster temporarily changed her Wikipedia entry to say, "Wendi used her ninja background to ward off an attacker. The move is now being referred to as the 'Crouching Wendi, Hidden Dragon'."
After the attack, Wendi tenderly cleaned off her husband.
UNIDENTIFIED MALE: Carefully wiping the foam off his jacket and his face. She was smiling and seemed quite happy that she had managed to score a blow.
MOOS: We watched her crossing her arms and crossing her legs, but it was the right cross we won't forget.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: And she should be celebrating her skyrocketing popularity. But right now, Michele Bachmann is busy fighting off rumors about her health. We'll tell you what the rumors could mean for her White House run.
(COMMERCIAL BREAK)
WHITFIELD: She is surging in the polls, but could severe migraines affect Michele Bachmann's ability to lead?
Shannon Travis, part of "The Best Political Team on Television" is live from the political desk in Washington.
So, Shannon, tell us about these headaches and what is causing these headaches for Michele Bachmann and the headache for her presidential run, too?
SHANNON TRAVIS, CNN POLITICAL PRODUCER: Yes. Hey there, Fred.
Yes. Now that Michele Bachmann has admitted that she has migraine headaches, she says like millions of Americans do, some people are wondering if this will add stress to her. Obviously running is very stressful. Some people are wondering if she will be able to match the stresses of a presidential campaign, and should she win -- should we win the White House, would she be somehow incapacitated?
This all stems from, as you and a lot of our viewers know, a report in the "Daily Caller" yesterday that said -- they used some unnamed sources -- that said that Michele Bachmann suffers from migraines and that they actually sent her to the hospital at least three times.
Yesterday, Michele Bachmann addressed that report and addressed the migraines at a campaign stop in South Carolina. Take a listen.
(BEGIN VIDEO CLIP)
REP. MICHELE BACHMANN (R-MN), PRESIDENTIAL CANDIDATE: I am prescribed 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 -- will not affect my ability to serve as commander in chief.
(END VIDEO CLIP)
TRAVIS: So there you go, Fred. Michele Bachmann saying they're not -- they don't incapacitate her in any way.
But at that same campaign event yesterday, there's another story that emerged. ABC's Brian Ross, he's an investigative correspondent for ABC News, he was trying to basically question Michele Bachmann about whether the migraines caused her to miss any House votes ever. She wouldn't answer. He kept pressing her and he apparently ran after her.
We're told by a time correspondent that two Michele Bachmann bodyguards actually, quote, "manhandled Brian Ross," and pushed him around a little bit. The campaign says that Brian Ross was ordered not to jump up on stage and he jumped up on stage. But the campaign is not addressing whether or not he was manhandled -- Fred.
WHITFIELD: All right. Let's talk about more news with another presidential debate. This tonight. Tell us all about it.
TRAVIS: That's right, Fred. It's being billed as the first ever presidential debate on Twitter. It's going to have six candidates, I'll just read off the names -- Michele Bachmann, who we just spoke about, will be there, Thad McCotter, Herman Cain, Newt Gingrich, Gary Johnson and Rick Santorum.
But there's a little bit of a snafu ahead of the debate. Tim Pawlenty, the former Minnesota governor, was listed on a press release a few weeks ago as being confirmed as attending. I contacted the campaign today. They said, look, we never confirmed to be there. I then went back to the organizers of this debate and they were like you know what, it was a miscommunication problem.
WHITFIELD: Oh, boy All right. Shannon Travis, thanks so much.
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Getting a deal on a new car isn't as easy as it once was. The earthquake in Japan and lower production by U.S. automakers have limited selections, and has driven car prices higher.
Alison Kosik has tips to help you save.
Hi, Alison.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hey, Fredricka.
So manufacturers aren't just raising car prices these days. They're also offering fewer incentives. Edmonds.com, in fact, says incentives were down almost 20 percent in June compared to the same time last year. And that works out to an average of about 2,000 extra that you spend on your car.
So before you we begin looking for new wheels, CNNMoney's Peter Valdes-Dapena recommends finding out what the car you have now is worth. Use the calculator at Kelly Blue Book and be honest about your car's condition. The website will tell you how much you could get, if you sold the car yourself, and you can use that to figure out if a dealer's offer for your trade-in is a realistic one -- Fredricka.
WHITFIELD: OK, so what about your new car? How can the Internet apparently help?
KOSIK: Well, do your homework. When you walk into a dealership, be prepared. Peter Valdes-Dapena says you should know which model you want and why. You can go to sites like Edmonds.com, KVB.com and AOL Autos. They offer reviews and they give information on features like fuel economy and power, and these sites tell you real world prices as well as sticker prices.
And once you've narrowed down your search to three choices, it's time to take a drive -- Fredricka.
WHITFIELD: OK, so is there a best time to buy?
KOSIK: OK. So if you can afford to wait, CNNMoney is recommending to hold off till the fall because that's when production in Japan is expected to pick up. Dealers are also going to start to move the 2011 models of lots to make room for the 2012 models. So if you don't need the latest and greatest features, that's a great time to negotiate a great deal -- Fredricka.
WHITFIELD: OK. And perhaps one of the most nerve-racking is trying to haggle, how to negotiate. How do you do that? What's the best way?
KOSIK: Oh, exactly. So unless you're a skilled negotiator, you may have bet luck getting someone else to handle it for you. CNNMoney lists sites like ZAG.com or CarWoo.com, which will actually haggle for you. Both sites give quotes from dealers and you don't need to give out your personal information. And since the dealers know you can compare prices side by side, they're more likely to give you their best offer.
Now once you have the car, stop there. Phil Reid of Edmonds.com told CNNMoney that extras like fabric protectors or extended warranties, they aren't really worth the cost. And of course, it goes without saying, remember to read every document very carefully before you drive off and sign, of course, on the dotted line and drive off with your vehicle -- Fredricka.
WHITFIELD: That's right, read the fine print.
All right, Alison Kosik, thanks so much. Appreciate that.
All right, we're asking you to talk back on one of the biggest stories of the day. Today's question: What's the solution to the political stalemate on the debt talks?
Todd says, "Ban political parties so they can all sit in a room without agendas and start representing the voters again."
We'll have more of your answers after the break.
(COMMERCIAL BREAK)
WHITFIELD: All right, you have been sounding off on our "Talk Back" session. Carol Costello is here has some of your responses. And something tells me people were on fire.
COSTELLO: Yes, you got that right, cause people really want lawmakers to sit down and talk, but they don't think that's going to happen.
The "Talk Back" question today: What is the solution to the political stalemate as it applies to the debt ceiling?
This from Sarah, "Compromise, simple. That is what this country was founded on. It's a pity that we're headed for a dictatorship with the Tea Party and associates."
This from Chris, "The Democrats want to continue their ways of spend more, tax more and borrow more. It's time to get your house in order and make changes that will reduce our deficit. It's wrong to assume the rich do not pay their fair share when the rich pay the majority of taxes in our country."
This from Cameron, "The debt ceiling and the economy is not some ideological holy war. It is the well-being and the future of our country. Personally, I am disgusted with the childish behavior on both sides. It's a shame there's no one decent in Washington. Maybe we should send Mr. Smith back to Washington."
And this from Dave, "Throw out the incumbents, and put in people who want to help the country. Oh, wait -- never mind."
We just did that, didn't we, in the midterm elections?
Keep the conversation going, Faccebook.com/CarolCNN, and I'll be back here right in about 15 minutes.
WHITFIELD: All right, a lot of comedians there. Thanks so much, Carol.
All right, the announcement that Borders will close its doors has folks wondering whether book stores are becoming a thing of the past. We talked to some independent bookstore owners who say, no way. And some analysts say it's the rise of the digital reader that's running Borders out of business.
We've seen eReaders come increasingly possible over the last few years. So how many people own an eReader now? Is it, 10.2 million, 20.6 million, 28.9 million or 5.7 million? The answer after this. (COMMERCIAL BREAK)
WHITFIELD: So we have seen eReaders become more popular over the last few years. Now bookstores across the country, including Borders, are going out of business.
We asked how many people in the United States own eReaders? The correct answer, 20.6 million according to eMarketer, and the research firm expects that jump to 28.9 million by next year.
So more than 10,000 people will be out of a job when Borders shuts its doors on all of it stores. Liquidation is expected to start as soon as Friday pending bankruptcy court approval. The president of Borders blames the tough economy and the invention of the eReader.
CNN's Martin Savidge takes a look at the winds of change in the book industry.
(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 call Kindles or Nooks, and books are downloaded anywhere, anytime.
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.
JOHN MCCLURE, SIGNALMAN PUBLISHING: This is actually a book we publish, "Get the Job You Want in IT."
SAVIDGE: He used to go to Borders, then saw the writing on the wall and gave up his IT job to begin Signalman Publishing. So far, he's published 200 electronic books and seen his business double each year.
MCCLURE: I think publishing is undergoing a huge change, not unlike the whole record industry with the -- with downloadable music.
SAVIDGE: So is it the end of paper books? McClure says no, not even close.
MCCLURE: Just in the last three years, it's literally come to about this point where eBook 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 researcher expert Britt Beemer agrees. He points out only 11 percent of Americans say they would buy an eReader.
BRITT BEEMER, AMERICA'S RESEARCH GROUP: So you still have -- 90 percent of Americans are still going to buy a book.
SAVIDGE: Beemer says it would be wrong to think that Borders went bust because bookstores are obsolete.
BEEMER: You can't look at Borders, to me, as a failure of the book industry. You have to look at Borders as a failure as a retail concept.
SAVIDGE: So if Borders got it wrong, then B&L Books would seem to have got it right.
JAN PACKWOOD, B&L BOOKS: This is romance. This is just regular romance.
SAVIDGE: Jan Packwood has 38,000 books and 4,000 loyal customers. Daughter Dina (ph) manages the place.
DINA PACKWOOD, B&L BOOKS: Well, we're here. 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.
J. PACKWOOD: Customer service.
SAVIDGE: Knowing your customers?
J. PACKWOOD: Yes, being able to build rapport with them, knowing what they read, and also our customers go way back as far as they have grown up in the store. When they were children, their mother broad them in and they may come back and bring their children, and -- it's sort of family like.
(END VIDEOTAPE)
WHITFIELD: Martin Savidge joining me now from a Borders slated to close right outside of Atlanta -- or in Atlanta, actually,
So I imagine maybe independent bookstores are kind of happy to see the big mega-bookstores go?
SAVIDGE: Hello, Fredricka. Yes, you'd think that, but it's not the case.
First and foremost, they say nobody likes to see 10,000 people lose their jobs.
But beyond that, they say to be an independent bookstore owner you have to love books and you have to love the magic of reading, and they don't care whether you capture that sensation to want to read at the library or in school or even at a competitors' store. They know once they have a reader, that's a customer for everybody.
So the loss of Borders is the loss of another one of those hundreds of places where people might get into books. So no, they don't celebrate, they actually mourn the loss of Borders.
WHITFIELD: Yes, it certainly seems like a very sad chapter.
All right, thanks so much. Appreciate it.
