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No Taxes on Airline Tickets; Accused of Unwanted Advances; Gay Weddings & The Economy; NFL Owners, Players Agree on a Deal; Norway Suspect Makes Brief Court Appearance; Hotel Maid Goes Public With Strauss-Kahn Allegations; Debt Limit Talks Still Stalled
Aired July 25, 2011 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SUZANNE MALVEAUX, CNN ANCHOR: Live from Studio 7, I'm Suzanne Malveaux. Want to get you up to speed for this Monday, July 25th. The man suspected of carrying out Friday's deadly bombing in Oslo, Norway, and massacre at a youth camp was in court this morning. Briefly, the judge said Anders Breivik admitted to the attacks and claimed he had help from two terror cells. That has not yet been confirmed. The judge ordered Breivik held for eight weeks in isolation until the next hearing.
This scene played out across Scandinavia earlier today, people pausing to remember the victims of that attack. As Norway mourns, we're hearing more from people who risked their lives to save others. Our CNN's Michael Holmes caught up with one of them.
(BEGIN VIDEOTAPE)
MICHAEL HOLMES, CNN CORRESPONDENT: It's not a huge boat. How many people did you put in here?
KASPAR ILGAUD, RESCUED CHILDREN FROM UTOYA ISLAND: The first round, I believe it was 14.
HOLMES: Fourteen?
ILGAUD: Yes. And then I had to address the oldest one of the four left and said, You have to stay ashore. I promise I will come back and get you. And they respected that. And I said, Sit down and wait. I went to the mainland. I went back again, and they were, as agreed upon, sitting there. And I just waved to them like this and they waved back, and we made a contact and got them in the boat.
(END VIDEOTAPE)
MALVEAUX: Well, the clock is ticking on the debt limit crisis. There's no deal -- if no deal by August 2nd, that means higher interest rates for you. It's a financial mess for the country. And the talks over the weekend -- well, essentially, they didn't go anywhere. So now Republicans and Democrats are working on separate plans to raise the debt limit and reduce spending.
Treasury Secretary Timothy Geithner says it is now time to act.
(BEGIN VIDEO CLIP) TIMOTHY GEITHNER, TREASURY SECRETARY: Back in January, more than seven months ago, we started this process of working with the Congress to get them to raise the debt limit so we could -- it's taken us seven months to get to where we are now. We're almost at a runway. We're not nowhere, but we're almost at a runway. And we cannot put the American economy through this periodic threat.
CANDY CROWLEY, HOST, "STATE OF THE UNION": Is that a no?
(END VIDEO CLIP)
MALVEAUX: The deadlock over the debt ceiling is making Wall Street quite nervous. Stocks are down in early trading. Right now, the Dow is down by 63 points. Asian markets closed lower on fears of a possible U.S. default.
Well, get ready for some football! That's right, NFL owners and players -- they've agreed now on a new labor deal. It's expected to be approved in a vote today. That's welcome news not just for the fans but also for everybody who makes a living off the NFL. Now, we're talking about parking attendants, hot dog vendors, hotels, entire cities. Billions of dollars are at stake. We've got a live report on that in just a minute.
Well, a hotel maid goes public now with her allegations of sexual assault. She is standing by her claims against the former head of the International Monetary Fund, Dominique Strauss-Kahn. Nafissatou Diallo spoke to "Newsweek" magazine and to ABC's Robin Roberts of "Good Morning America," and she says that Strauss-Kahn was naked when she entered his hotel room.
(BEGIN VIDEO CLIP)
NAFISSATOU DIALLO, ALLEGED RAPE VICTIM: I was, like, I'm so sorry. I turn my head. He come to me and grab my breasts! No, you don't have to be sorry. I said, Stop (INAUDIBLE) I don't want to lose my job!
(END VIDEO CLIP)
MALVEAUX: Los Angeles fire investigators are looking at the possibility an arsonist is setting fires in North Hollywood. Crews put out more than a dozen fires over the weekend. Most of them involved vehicles in carports.
Well, wedding bells ringing all over New York this weekend as the state officially began allowing same-sex marriages. Now, the first couple to tie the knot in New York City was 77-year-old Phyllis Siegal and 85-year-old Connie Kopelov. They've been together for decades, and they're finally married at the city clerk's office as a crowd of onlookers cheered them on.
(BEGIN VIDEO CLIP)
PHYLLIS SIEGAL, JUST MARRIED IN NEW YORK: It was just so amazing! It's the only way I can describe it. I lost my breath, and a few tears. And it's indescribable. (END VIDEO CLIP)
MALVEAUX: Back to the big news in the NFL this morning. Well, the owners and players have now agreed on a deal. It's not just the fans that are cheering, but you've got businesses in every city with an NFL team that are sighing with relief here.
David Mattingly joining us. Tell us what this means because it goes much more beyond the game.
DAVID MATTINGLY, CNN CORRESPONDENT Well, you look at the NFL, they have $9 billion in revenue. And -- but when you look at each individual city -- I mean, take Atlanta, for example. They had two pre-season games last year. They had eight regular season games. That brought in $56 million into the economy.
So you can see that in just about every NFL town everywhere, there's a game going on. And then earlier, you were talking about all the people who work at the games...
MALVEAUX: Sure.
MATTINGLY: ... and everything like that. These teams have a lot of people depending on these teams getting on the field, and that's about to happen. We got confirmation today that we will have a vote from the players union today. They're going to be taking it to, first, the players' representatives.
MALVEAUX: OK.
MATTINGLY: Then the representatives will take it to the rank and file. It's going to take 50 percent plus one of the players to approve this deal.
MALVEAUX: So what was the main sticking point here? What were they negotiating over?
MATTINGLY: Well, what the owners were trying to do was trying to work through with the players on issues about health and safety, about limiting the amount of contact they would have in practice.
MALVEAUX: OK.
MATTINGLY: They've also had issues talking about retirement. This was a sweeping, sweeping agreement. And it's a collective bargaining agreement that's going to last now for 10 years. That's unheard of in major league professional sports.
MALVEAUX: And are the fans -- are they -- are they going to come back, do you think, David? I mean, there's been this kind of roller- coaster ride and folks getting nervous about this. Do they lose some of their fans?
MATTINGLY: Well, so far, the only thing the fans have missed is going to be that Hall of Fame game, that first pre-season game of the year, in Canton, Ohio. They're not going to be able to make that one. So if they get that agreement going, if they're able to get people back onto the field the way they expect to, the regular season may not be in jeopardy. And that's when fans really start to get upset.
MALVEAUX: All right. Well, I know a lot of people are looking forward to the season. So thank you very much, David. Hope it all works out.
MATTINGLY: We'll see.
MALVEAUX: Here's your chance to talk back on one of the big stories of the day. Today's question: Should President Obama forget Congress and raise the debt limit on his own?
Carol Costello -- good to see you, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: Good to see you. Welcome back.
MALVEAUX: Thanks. Amazing what a week can do for you.
COSTELLO: Yes. And amazing what a week cannot do for Washington because, yes, no debt ceiling deal. So please, allow me to be crass. The popular topic on Twitter this weekend was, "FU Washington." I doubt you're shocked.
After seven-plus months of scathing political attacks, countless meetings between the president and lawmakers, half a dozen plans, there is still no debt ceiling deal. Bottom line, House Speaker John Boehner says if a deal is not in place by Wednesday, the country will go into default, something that could cause interest rates to shoot up and stock prices to plummet.
So if there is no deal by Wednesday, what should President Obama do? Bill Clinton says he ought to invoke the 14th Amendment. Clinton says the 14th Amendment gives the president the authority to raise the debt ceiling without congressional approval. President Obama is actually thinking about it.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I have talked to my lawyers. They don't -- they do not -- they are not persuaded that that is a winning argument.
(END VIDEO CLIP)
COSTELLO: So that's a no, right? Well, maybe not. Peter Shane (ph), a law professor from Ohio State, argues the president ignored the White House lawyers on Libya and he adopted a tenuous interpretation of the War Powers resolution. So why not adopt a tenuous position on the 14th Amendment?
So the "Talkback" question today: Should President Obama forget Congress and raise the debt limit? FaceBook.com/carolcnn, FaceBook.com/carolcnn. I'll read some of your comments later this hour. MALVEAUX: All right. The deadline is looming. A lot of people wondering how this whole thing is going to be resolved. Thank you, Carol. Appreciate it.
Here is a rundown, some of the stories that we're looking at ahead. First, the hotel maid who told police she was raped by one of the most powerful men in France -- well, she's going public with her story.
Then the FAA is not collecting taxes on airline tickets, but it's not going to mean savings for you.
Plus, the heat outside -- downright dreadful. Well, some states could catch a break soon. We'll tell you which are the lucky ones.
And then seven-term congressman from Oregon David Wu accused of unwanted sexual advances on the teenage daughter of a family friend.
And as wedding bells ring for same-sex couples in New York, so do cash registers for people in a lot of businesses.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: It's a new market that we're going to be able to tap. You know, there's a lot of affluent same-sex couples in the city who are really excited about being able to get married.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
MALVEAUX: More now on the first court appearance for Norway's terror suspect. It was brief. Few people actually saw Anders Breivik.
Our Michael Holmes -- he joins us from outside the courthouse. And Michael, I understand that we are just getting news now that the Norwegian police -- they held a press conference. They have adjusted those numbers, the casualty numbers. Before, it was believed that 93 people had been killed from the initial explosion and in that mass shooting. That has been downgraded now to 76 people who lost their lives, the police saying that this was due to some confusion at both scenes about those numbers.
Clearly, that is a little bit of good news here, but this is just such a tragic situation all around. Can you tell us what happened at the courthouse today?
HOLMES: Yes, I can do that. You're right. At Utoya, the island where the shootings took place, that is now about 68 dead, was 86 initially. And at the Oslo bombing, that's actually gone up one from 7 to 8. Those numbers can still change. We've got a few missing near the island, four missing there, and there could be more still in the damaged building not far from where I am.
Now, here at the court, Anders Breivik appeared. As we thought it would be, it was brief. We did think we were going to be able to get in there, that the media was going to be allowed in. It's a very open judicial system here in Norway. However, the police said that they still weren't convinced that Breivik did not have associates on the outside, co-conspirators. And they feared that if he did appear in court, he might send a message to those co-conspirators, and so they barred the media and the public from the court.
But again, this being a very open society, we got the judge afterwards coming out and giving a news conference, basically, and outlining the things that the accused has said. First of all, he said that he has remanded him in custody, not surprisingly, for eight weeks. And there will be another court appearance. He's not allowed to have newspapers, television, no contact with anyone. So he can't get in touch with anyone he may have conspired with.
He also made an interesting point. He said that Breivik had said that he was involved with two cells who helped him carry out the act. And so police are obviously looking into that side of it.
I want to play you one sound bite that the judge said. Have a listen.
(BEGIN VIDEO CLIP)
TRANSLATOR FOR JUDGE KIM HEGER: Despite that the accused has acknowledged the actual circumstances, he has not pleaded guilty. Turning (ph) to what the court understands, the accused believes that he needed to carry out these acts in order to save Norway and Western Europe from, among other things, cultural Marxism and Muslim takeover.
(END VIDEO CLIP)
HOLMES: And of course, Suzanne, this is what we've heard from Breivik...
MALVEAUX: Right.
HOLMES: ... his manifesto that was published on line and the like. He was saying that, you know, he feared colonization of Europe by Muslims and that's why he carried this out, the target here in Oslo being the Labor Party. And of course, on the island, that was a youth Labor Party camp that was going on there, Suzanne.
MALVEAUX: Such a tragedy. Michael, do we know what's next for this suspect here?
HOLMES: Yes, he appears back in court in eight weeks. Now, he could just get another remand again, be remanded in custody again for another eight weeks. And the process here -- I was talking to a law professor earlier. He said that in a case like this, where Breivik has pleaded not guilty and there will be a trial, it could take up to a year for a verdict -- for us to hear a verdict in this case -- the irony being, of course, that he's as pleaded not guilty, but he's admitted to everything. The reason for that -- he wants a trial to give him a platform to give his views again.
MALVEAUX: I see. OK. Michael, thank you very much.
Allegations of sexual assault, a high-profile case of "He said, she said." Now the hotel maid who accuses a powerful money man goes public with her story.
(COMMERCIAL BREAK)
MALVEAUX: A hotel maid who accuses a powerful international figure of sexual assault -- she's now breaking her silence. Nafissatou Diallo spoke to "Newsweek" magazine and to ABC's "Good Morning America" about her allegations against Dominique Strauss-Kahn. He has denied assaulting her, but she stands by her story.
Our national correspondent, Susan Candiotti -- she's been following the case from the very beginning and she's joining us from New York. Susan, give us a sense here. Now that the alleged victim has come forward, is there any talk in the legal community about whether or not this is going to help or hurt her case?
SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, I think you get people from both sides talking about this, Suzanne. It could help if, in fact, what she's doing what she said she would do, and that is to try to put pressure on prosecutors to get them to go forward with the case against Dominique Strauss-Kahn.
On the other hand, as you said, it's truly remarkable that an alleged sex assault victim would come forward before authorities have had a chance to go to trial or decide on whether they're going to press charges in this particular case. So it's really, really fascinating.
Also fascinating is the disturbing account that we now hear from her in her own words. For example, she said she tried to stop him when he, she says, came after her in the hotel room. Here's part of the interview.
(BEGIN VIDEO CLIP)
NAFISSATOU DIALLO, ALLEGED RAPE VICTIM: Then I said, Oh, my God! And I was crying. I said, They're going to kill me! I said, They're going to kill me. I'm going to die. Stop! Stop this! Stop this! But he wouldn't say nothing. He keep pushing me, pushing me, pushing me to the hallway, back to the hallway, keep pushing me. I was so afraid. I was so scared!
(END VIDEO CLIP)
CANDIOTTI: Why is she coming forward? She says because she wants justice. In her words, she doesn't think someone as powerful as Dominique Strauss-Kahn, who was then head of the International Monetary Fund -- she said she didn't know that at the time -- but she said someone like him shouldn't be able to get away with this. As you said, Suzanne, he has denied the charges.
She denies claims that she is a prostitute. Here's her answer to that.
(BEGIN VIDEO CLIP)
DIALLO: I'm not! And I never been called that since I was born. God is my witness, I'm telling the truth from my heart. God knows that. (END VIDEO CLIP)
CANDIOTTI: As soon as everyone learned that these interviews had taken place on Sunday, lawyers for Dominique Strauss-Kahn issued a written statement, and a written statement only, accusing her, as they say, as the first accuser in history to conduct a media campaign to persuade a prosecutor to pursue charges against a person from whom she wants money. And they added, speaking of her lawyers, its obvious purpose is to inflame the public.
Now, Suzanne, she has not yet filed a civil lawsuit against Strauss- Kahn, though that is widely expected.
MALVEAUX: All right. Susan Candiotti, thank you very much, Susan.
We got three great stories. Only one of them's going to air. So it's your chance to "Choose the News." These are the options. Number one: In a country where women's voices often go unheard, this Afghan mom is making a mark in independent journalism.
Number two: It wasn't his choice to join the Army, but it became his life. He served his country for almost four decades. Now the last draftee is about to retire.
Or number three: You know it as a dangerous drug, but a century ago, Freud was calling it a miracle cure for mental illness. Our Dr. Sanjay Gupta takes a look back at the long, strange trip of cocaine.
You can vote by texting 22360. Text 1 for Afghanistan's female voice, 2 for the last draftee retires, or 3 for the history of cocaine. The winning story will air in the next hour.
Well, the East -- finally going to get some relief from the heat this week. Our Rob Marciano -- he joins us with what is on the way.
ROB MARCIANO, CNN METEOROLOGIST: Well, cooler temperatures, at least for a couple days, Suzanne. And then I think we're going to crank things back up.
I want to put into perspective what we did last week as far as the amount of heat we had for the week of July 17th to the 24th. We had on Friday -- that was the hottest day of the week -- 745 temperature records. Total records for the entire week, almost 4,000. Unbelievable!
And guess what? We had more records yesterday, 100 degrees in Raleigh, 100 degrees in Atlantic City. Wilmington, North Carolina also seeing the century mark, and Pennsylvania and Philadelphia seeing 98 degrees there.
So where are we going to see the hot weather today? Across the southern plains and the central plains. Dallas and Oklahoma City, and parts of Arkansas have seen 100 degrees plus now for over 20 days in a row. And the next five to ten days doesn't look to be any cooler. So I think we'll probably see a record streak goes (ph) as far as that is concerned. But the eastern third of country, a little bit cooler. We had a little cool front kind of come through yesterday. We've got another one that's going to drop down from Canada, and that will spawn more in the way of some showers and thunderstorms. We're seeing that just about right now.
Some of these could be rough heading through Scranton getting into some of the tri-state area here across New Jersey and New York and southern Connecticut, up towards Newberg (ph), across the Hudson Valley, we're seeing some thunderstorms, as well. So just be aware of that. We could see some boomers later on in the day.
As far as what the temperatures are expected to be here going forward, 106 in Dallas, so we'll be threatening records there for sure there today, but 85 degrees after the torrential rains over the weekend, 85 and much drier in Chicago, but 79 rain-cooled degrees today in New York City and 85 degrees in Atlanta.
But enjoy the temperatures, for our friends across the Northeast, today and tomorrow. We heat it back up to the 90s and maybe even close to 100 again as we get closer to the weekend, giving the air conditioners a break, at least for a time -- Suzanne.
MALVEAUX: OK. I think my air conditioning conked out. We'll see how that goes. Thanks, Rob.
MARCIANO: You bet.
MALVEAUX: A lot of talk but no action in the debt limit crisis. We're going to update you where things stand and what it all means for your finances.
(COMMERCIAL BREAK)
MALVEAUX: Here's a rundown of some of the stories that we are working on. Next, the fallout is predicted to be catastrophic if Congress doesn't come up with a debt deal in a week. Ali Velshi has details on what it means for you.
Then the wedding business feeling the love as same-sex marriage is legal now in New York.
And later, the FAA stops collecting taxes on your airline ticket because of a partial shutdown, but don't even expect cheaper fares.
And the debt ceiling crisis is turning into a real cliffhanger. Outcome determines whether or not you end up paying higher interest rates and whether the economy takes a major hit. Well, the talks over the weekend -- they stalled. So now Democrats, Republicans -- they are working on separate plans. Senate Majority Leader Harry Reid's plan calls for $2.7 trillion in deficit reduction. It does not include tax hikes opposed by Republicans. Well, House Speaker John Boehner -- he's expected to protose -- propose, rather, a two-step plan, $1 trillion in spending cuts while raising the debt limit through 2011, then the second stage tied to tax reforms and entitlement changes later on down the road. Well, the White House says that President Obama -- he opposes any short-term deal that requires a second vote in the middle of the 2012 elections. The president canceled two fund-raising appearances today to focus on the debt crisis.
So the deadline for raising the debt limit -- just eight days away. What happens if lawmakers don't reach a deal?
Our chief business correspondent, Ali Velshi, joins us. You know, Ali, a lot of people are asking, What are the consequences? If no deal is reached by August 2nd, is there a way for the government to delay paying some of its bills?
ALI VELSHI, CNN CORRESPONDENT: Yes, they're asking me the same question. I wish I had an answer. We have never been anywhere near this. Since the day America had a credit rating, it's been the best. We've never missed a payment, we've never been late on a payment, we've never not paid in full when it's due. So we really don't know.
But Suzanne, I hearken you back to 2008, when, you know, Lehman Brothers collapsed and we thought the market...
MALVEAUX: Right.
VELSHI: ... would be able to absorb that, and it didn't. I would suggest that a U.S. default of any sort is substantially larger and more important than the collapse of an investment bank.
Let me tell you this, Suzanne. There's a mixed -- there are mixed views as to what would happen to interest rates. In theory, our credit rating would go down, right?
MALVEAUX: Right.
VELSHI: The U.S.'s perfect, stellar credit rating would decrease. And when your credit rating goes down -- if this happened to you or me, the net result would be it would become more expensive and a little harder to borrow money.
We are not sure that that's going to happen, but we are probably likely going to see an interest rate increase, and it's probably going to affect stocks. So if you have a 401(k) or an IRA or you just invest in the stock market, that's probably likely to be pulled back.
The net effect of that is that it could cost jobs and leave less money in people's pockets, which in an economic recovery makes it a little bit difficult to sort of plug along.
MALVEAUX: So Ali, a lot of people have been asking this question. Should we change our 401(k)s or retirement plans? Is there anything that we can do or expect that's going to happen to our 401(k)s because of this?
VELSHI: I think you should have control over your 401(k). In other words, you should know who you call if you need to change it. You should know how to sell your holdings, if you need to. You should know how to log into the program.
I would tell you today, Suzanne, I wouldn't do anything just yet. I would make sure you're not overexposed. I would say that safer investments are companies that have a lot of cash and not a lot of debt. They are the least likely to be affected by this.
But I would say that we've got, you know, maybe 48 or 72 hours in which to see if Washington comes up with a deal. Right now, when you look at the stock market, it is pricing in the idea that there is going to be a deal. There is going to be a conclusion to this.
If there isn't, we're going to let everybody know, and then you can consider whether or not you should get out of the stock market.
But the biggest mistake people make is they sell out at the wrong time. They buy in at the wrong time. And they miss the normal vacillation, normal up and downs of the markets.
So, I would caution people right now
SUZANNE MALVEAUX, CNN ANCHOR: Sure.
VELSHI: Don't worry about it. I'll let you know when it is time to do so.
MALVEAUX: All right. Ali, we'll be asking.
Real quick follow-up here. You talked about downgrading the credit rating of the United States --
VELSHI: Yes.
MALVEAUX: -- making it more expensive to borrow. Is that inevitable because we're so close to this deadline? Is that already going to happen or is it possible that that's still on hold?
VELSHI: There are a number of key economists who say it is inevitable that the credit rating will be downgraded. That's very serious.
It is not inevitable that if we get a downgrade in the credit rating that our cost of borrowing will go up substantially. Remember, interest rates are historically low. Fed rates are low. Mortgage rates are low.
So, it's not inevitable that they are going to go up. It is -- many people say more than inevitable that we're going to get a ratings downgrade even if they made a deal today because we have sent the signal to the world that our politics comes in the way of good economic decision-making in the United States. And the rest of the world isn't interested in us getting to it within days of defaulting on debts before sorting that out.
In normal life, Suzanne --
MALVEAUX: Sure. VELSHI: -- you wouldn't -- your bank wouldn't appreciate it if you're always rubbing up against a deadline and calling people and shuffling things around. That's the situation we're in right now.
MALVEAUX: All right. Ali, we're going to be watching this very closely and obviously getting back to you as anything develops. Thanks again, Ali.
The next time you fly, you might notice that you're not charged any taxes on that ticket if you look at the fine print. Well, that is because the FAA, which is partially shut down now, but it doesn't mean that you're going to get away with a cheaper flight.
Our CNN senior correspondent Allan Chernoff is at the New York Stock Exchange to talk a little bit about this.
And, Allan, so the FAA, it doesn't collect taxes on tickets now, but does that mean there is any savings for us? What's going on?
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Right. Well, they haven't been collecting taxes since Saturday. So, yes, you'd expect we'd be saving some money. But in most cases, it's just not happening. Even though the government isn't collecting some of the taxes that normally fund the FAA, many carriers simply are not passing along the savings.
Instead, they've actually raised their fares by the same amount of the tax. Rick Seaney of farecompare.com says that would give a major boost to airline earnings.
Suzanne, I guess you're not too surprised.
MALVEAUX: I'm not surprised. We're getting caught with the expense here.
So, if you buy your ticket weeks ago, you pay the taxes, you're flying now -- do you get a refund?
CHERNOFF: Well, the Treasury Department is telling us that, yes, you should be able to get a refund. This is all theoretical. On a $300 domestic ticket, that would amount to about 30 bucks. Now, the government is still working out exactly how this would all happen but the money should be coming from the airlines.
Let's also note that not every single carrier has raised its prices. Virgin America and Alaska Air are touting the savings as a tax holiday. In fact, Virgin has a very witty promotion. They're telling consumers, quote, "Evade taxes, take flight" -- Suzanne.
MALVEAUX: Not a bad motto there.
Let's go back to the FAA, the shutdown here, more serious. Are folks being laid off now or how is that impacting their agency?
CHERNOFF: Yes. And, indeed, 4,000 FAA workers are furloughed without pay and $2.5 billion in airport construction projects all over the country are now on hold. That is hitting people who work on those projects both in the private and the public sector.
So, a major impact here. And this is not a good time for it either of course.
MALVEAUX: All right. Allan, thank you so much. Appreciate it.
Allegations of unwanted sexual advances lead to calls for an ethics investigation of a congressman. Details in our Political Ticker update.
Also, it's bigger, it's brighter, even easier to find CNN's most compelling video. We're going to invite you to check out the bold new look of CNN.com's ground-breaking new video experience. That's at CNN.com/video.
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Text 1 for Afghanistan's female voice. This mom is making a mark in independent journalism in a country where women have long been silenced.
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The winning story is going to air in the next hour.
Well, allegations of unwanted sexual advances lead to calls for an ethics investigation of an Oregon lawmaker.
Mark Preston, part of "The Best Political Team on Television" is live from the political desk in D.C.
And, Mark, what can you tell us about the allegations against Congressman David Wu?
MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Well, very serious allegations, Suzanne, by a young woman who has accused Congressman Wu of Oregon of an inappropriate, improper sexual encounter. The story was first broke on Friday night by "The Oregonian" newspaper.
And the congressman put out a statement not denying it actually happened. In fact, he said that while it is very serious, he has absolutely no desire to bring unwanted publicity, attention, or stress to the young woman or her family.
So, here we are now, House speaker -- or, rather, Democratic leader Nancy Pelosi has asked the House Ethics Committee to launch an investigation into Mr. Wu's conduct. Now, Mr. Wu has had some kind of history of erratic behavior. Back in 2010, right around the election, he did some things that caused his staff to draw some major concerns. In fact, he sent this picture right here of himself dressed up as a tiger right around the election, right around Halloween time. He sent it to some staffers.
The staffers were very concerned about him. They tried to get him some help. They were unsuccessful.
Now, the congressman has eventually said that at the time he was under a lot of stress. He was raising his two young children alone. He lost his father. And he was involved in a very heated campaign.
So, he did acknowledge that he was seeking some help back in 2010.
But here we are right now in 2011 and Democratic leaders are asking for this ethics investigation.
I'm going to tell you, Suzanne, the fact that they're doing it just shows you where his support is right now with the Democratic Caucus, and that really shows he has no support -- Suzanne.
MALVEAUX: Yes. Did he ever explain the outfit, why he sent that to his staffers?
PRESTON: He said that it was around Halloween and he was having some fun with his kids. But it is kind of a bizarre thing to do to then send a picture of yourself to your staffers.
MALVEAUX: All right. Thank you very much. We will get an update on the story as it develops. Thanks, Mark.
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MALVEAUX: Well, they had to wait 23 years for their big day. Meet some of New York's same sex newlyweds. A lot of New York businesses are just as happy about the news as these two are. We're going to tell you why.
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MALVEAUX: It's a sight that caught our eye. The number of same sex wedding announcements in the "New York Times" this weekend, the increase paints a picture of the new normal in the latest state to allow gay couples to get married.
Well, on Sunday, hundreds of same sex couples flooded into New York City's clerk's office to exchange vows and to make history. In all, 764 weddings took place setting a new one-day record for the city and setting a new definition of marriage in New York.
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MARCOS CHALJUB, NEWLYWED: It's the moment we've been waiting for for years.
FREDDY ZAMBRANO, NEWYLWED: A dream come true for us. A dream come true to say this is my husband now, Freddy, as opposed to my boyfriend or my partner.
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MALVEAUX: All of the wedding bells mean big bucks for the state's economy as well. The bakers, wedding planners, dress makers all raking it in as same sex couples step up to the altar.
Maggie Lake has that story.
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UNIDENTIFIED FEMALE: Hi.
UNIDENTIFIED MALE: Hi.
UNIDENTIFIED FEMALE: Hi. How can I help you?
MAGGIE LAKE, CNN CORRESPONDENT (voice-over): Barry Ernst and Kevin Phillips have been together for more than 20 years. On Monday, they plan on finally tying the knot, one day after New York state's landmark bill allowing same sex marriages goes into effect.
It has been a whirlwind few weeks of planning.
UNIDENTIFIED MALE: That's a simple design there.
UNIDENTIFIED MALE: Let's put like some loose calla lilies up there.
KEVIN PHILLIPS, PLANNING SAME-SEX MARRIAGE: It started with simply saying we should do this. Come on. Let's do it.
And then it was, if we're going to do this, we should have a reception. If we're going to have a reception, you need a cake.
LAKE: Businesses like City Cakes are bracing for a spike in orders from couples like Barry and Kevin who have been waiting to wed for years.
JASPREET SAHOTA, CITY CAKES: It's a new market we'll be able to tap. You know, there's a lot of affluent, same sex couples in the city who are really excited about being able to get married and are looking to order extravagant cakes or flowers or, you know, even booking extravagant venues.
LAKE (on camera): The city estimates that over the next three years, the new legislation could bring in more than $700 million to New York City and it's not just small businesses like City Cakes that hope to benefit, but also historic institutions like the Pierre Hotel.
(voice-over): Inside a luxury Pierre suite, Nora Walsh walks us through the hotel's tempting package to same sex couples. NORA WALSH, THE PIERRE HOTEL: They have a personalized wedding cake as well as champagne on arrival. (INAUDIBLE) for some chocolate as well as oysters. A carriage ride in the world's most romantic park, Central Park, as well as a picturesque picnic.
So, that's definitely something that isn't something we do with any of the other packages. People that are getting married right now are going to want simpler, quicker weddings rather than people who are taking a year or two to plan very elaborate weddings.
UNIDENTIFIED MALE: Many of our rooms are actually stainless steel.
LAKE: Pent up demand may trigger a summer time surge but at Chelsea gift shop Arcadia, Jay Gurewitsch is planning for a permanent boost to business.
JAY GUREWITSCH, ARCADIA: Typically, we would keep in stock anything, about 20 to 30 rings maximum. By the time the summer is over, we'll probably have over a hundred different styles of rings in stock and many more of them will be specifically geared for weddings.
BARRY ERNST, PLANNING SAME-SEX MARRIAGE: I think they're going to be surprised at how much more business they're going to have. A couple of the other people that we spoke to about cakes before we decided on City Cakes were just -- when they saw us come in, you could se the almost the dollar signs in their eyes.
UNIDENTIFIED MALE: It's going to be beautiful, guys. You're going to be really happy with it.
LAKE: History is being made and New York businesses are hoping for an invitation.
Maggie Lake, CNN, New York.
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MALVEAUX: Not everybody in New York was cheering on Sunday. Thousands rallied with the National Organization for Marriage to protest the weddings.
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UNIDENTIFIED FEMALE: That's not what the Bible says. The Bible says that there is a husband and a wife and that's how we are to bring up our children.
UNIDENTIFIED MALE: Man marrying man, woman marrying woman, we're against that. Not only that we're against it, but God is.
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MALVEAUX: The march began on Park Avenue outside of the office of Governor Andrew Cuomo who had championed the bill.
But, today's talk back question: Should President Obama forget Congress, just raise the debt limit?
Christina says, "Yes, he should. Obama has done everything he can to work with the Republicans and all they want to do is get him out of office -- at all cost, even if it comes to bringing the U.S. down."
More of your responses up ahead.
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MALVEAUX: If you haven't booked your summer travel yet, you could end up paying a lot for for these last-minute plane tickets.
Allan Chernoff is here with tips to help you save some money.
Allan, I guess that's me. I always buy these tickets at the last minute. Help me out. Help a sister out.
CHERNOFF: Well, it's going to cost you, but we've got a few ideas here. OK?
MALVEAUX: OK.
CHERNOFF: We checked with the travel site farecompare.com. They tell us there have been 13 fare hikes this year, but there is some good news here. Most of those fare hikes came earlier in the year and many of the recent ones have been withdrawn.
Rick Seaney at Fare Compare says the summer travel tips are these:
First of all, when you fly it really matters. Many airlines will add surcharges on the busy days, so what you want to do is be flexible. Here you go -- Tuesday, Wednesday and Saturday are the cheapest days for domestic flights. Friday and Sunday, the most expensive days.
So, Suzanne, if you have some flexibility, I don't think you do, but if you do have --
MALVEAUX: Not that much.
CHERNOFF: If you do have, you could you save a little bit.
MALVEAUX: What about times to buy the tickets? Is there a best time to shop, maybe?
CHERNOFF: Yes, of course, you will need to shop while you're working, but this is what you can do, as long as the bosses aren't watching. Fare Compare crunch the numbers, they found that prices are lowest at 3 p.m. on Tuesday.
Now, most of those discounts will get pulled on Thursday, so you don't want to wait until the weekend to be buying the ticket.
MALVEAUX: OK. Who knew, 3:00 on Tuesday. Unbelievable.
CHERNOFF: Right. Set your -- set your outlook.
MALVEAUX: OK. And once you figure out where you're going, you got a departure date, any other tricks that you can do to lower the price?
CHERNOFF: Right. Well, Rick Seaney recommends buying tickets -- get this one at a time, even if you're booking travel for a whole group. This is certainly a hassle.
But he says when you buy more than one ticket, the airline reservation systems will price all the tickets equally at the highest price. So, if you buy one at a time, you can get some cheaper seats. And he's saying that it could save you, theoretically, hundreds of dollars.
Honestly, to me, sounds like a huge hassle.
MALVEAUX: And if you just can't avoid a last-minute flight is there any way to save money on the last-minute flights that you've got to book?
CHERNOFF: Right. OK. Here are a few strategies. First of all, the airlines sometime do have last-minute deals on off-peak round trips. For example, Thursday to Monday, Saturday to Tuesday. Again, what you have to do is you have to be flexible.
You can also try to buy tickets using miles or points, so if you don't have enough, you can always go to the airline Web site, buy some extra miles.
And here's another idea: you can look for packages that actually include hotel stays, even if you're not planning to stay at hotels, because Seaney says many packages offer these combo sites that are actually cheaper than the airline tickets alone purchased at very last minute.
MALVEAUX: OK.
CHERNOFF: Few ideas for you, Suzanne.
MALVEAUX: Yes, those are great ideas. I got book a flight for Friday. So, I'm going to make sure Tuesday, 3:00, I'm online, trying to figure it out.
So, thank you, Allan.
CHERNOFF: That's right.
MALVEAUX: Appreciate it. Thanks again.
CHERNOFF: Good luck.
MALVEAUX: There is still time to vote on the story would you like to see in the next hour. You can text your vote to 22360.
Text 1 for Afghanistan's female voice. This mom is making a mark in independent journalism, making her voice heard in a country where women generally are silenced.
Text 2 for the last drafty retires. It wasn't his choice to go to Vietnam but he stayed in the army for almost four decades. Or text 3 for the history of cocaine -- from miracle cure to dangerous narcotic. Dr. Sanjay Gupta, he is tracking the history of cocaine.
Winning story is going to air in the next hour.
Deadline on the debt crisis grows more urgent with every day which bring us to today's "Talk Back" question and, Carol Costello, who joins us from Washington -- hey, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: Yes, I got the responses back, at least some of them. The talk back question today, Suzanne: should President Obama forget Congress and raise the debt limit?
This from Michael: "If there is a way -- and some say there is -- for Obama to raise the debt ceiling, I say do it. Linking the debt ceiling to all these spending/cutting plans is just insanity created by the GOP and some reason, bought into by the Democrats. A pox on both."
This from Adam, "If he can do it legally, he should use the executive order and end this nonsense. GW Bush would have done it for sure."
This from Burak: "Why would we raise the debt ceiling if no money is going toward paying down our debt? It literally makes no sense. I say let's default and get it out of the way sooner rather than later because it's happening regardless."
This is from Kyle: "To do so is a subversion of the democratic process as it was designed by the Founding Fathers. But then again, the Founding Father assumed that those who held elected office would actually manage to not be insane, hell-bent on wrecking the U.S. economy."
Thank you for responses. Facebook.com/CarolCNN. Please continue the conversation. I'll be back with you in about 15 minutes.
MALVEAUX: All right. Carol, you can't go yet, sorry. You got to stay. You got to stick around.
You know we have favorite segments for you, Carol. Just for you. For you only.
COSTELLO: I am ready.
MALVEAUX: OK. This is a doozy. All right. Old furniture, sculptures, you have anything like that lying around?
COSTELLO: Yes, but it's all junk.
MALVEAUX: OK. You would think, right? You think it's junk.
So, the guys from "Antiques Roadshow," they're stopping by Atlanta next week. I got my own junk. But I want you to check this out.
They gave the best news to this guy. He's out of Tulsa. They appraised a rare collection of Chinese carved rhino horn cups, OK, between $1 million and $1.5 million.
COSTELLO: What?
MALVEAUX: Yes, I'm not kidding you.
They are from the late 17th or early 18th century, most valuable appraisal in the show's history. So, you got any rhino horn cups laying around, Carol, anything like that?
COSTELLO: I don't know. I don't know but I'm going to look in every corner of my house. Rhino stuff.
MALVEAUX: You know, your junk, somebody else's treasure, really. Check it out because it's really kind of amazing.
And I also want our viewers to check this out, too, because this is -- this is very cool. I'm not a tech person here. But, look, you got to check it out.
All right. If you are away from your TV, you can still watch CNN NEWSROOM right now on your phone, your computer or your iPad. That's what we are watching here. You can see the show, any of our CNN favorites, live on the go. So, you got to check out CNN.com/video or just download the app and go.
See? I mean it is like live TV on your iPad, on your phone. It's pretty cool stuff, Carol.
COSTELLO: It is cool stuff. And, see, you can do it. You just did it, I'm proud of you.
MALVEAUX: And, you know I'm so afraid of technology. Look we did this. We pulled it off.
COSTELLO: She doesn't even know how to like operate her stereo.
MALVEAUX: Stereo? Now, I'm more sophisticated than that. But I do have album, I have albums. So, yes, it is a shame, but true.
So check it out. All right. We will have more. We will have more with Carol after the break.
COSTELLO: I'll be back.
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