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London Home Going for $160,000,000; Bachmann Wins Iowa Straw Poll; Dow Up to 100-Plus Points; Best Little Towns in America; American Kidnapped in Pakistan

Aired August 15, 2011 - 08:59   ET

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


KYRA PHILLIPS, CNN ANCHOR: Good morning, ladies. Thanks so much, it's 9:00 a.m. on the East Coast, 6:00 a.m. out West.

This hour, a memorial service at the Indiana State Fair, five people were killed, dozens injured when a concert stage collapsed during a weekend storm.

Americans paying a dime a gallon less for gas and prices are likely to slide more.

And kept inside a cage in the courtroom. This may be the last public image of Hosni Mubarak for a while. TV coverage won't be allowed when his trial resumes next month.

And a wild weekend shakes up the Republican race for the White House. We have winners, losers and a potential game-changer.

First up, Michele Bachmann, she begins the week with a big win, the coveted straw poll in Iowa, the same contest that chases Tim Pawlenty from the race. He finished a disappointing third. And Texas Governor, Rick Perry steals much of the spotlight with his weekend entry. Charismatic, he brings new excitement and a lot of buzz to the GOP landscape.

We have lots best political team on television is breaking down those stories for us, the unofficial start of President Obama's re- election campaign as well. Let's go ahead and start with Jim Acosta and a closer look at Rick Perry joining the race.

So Jim, how much of a potential game changer would you say this is?

JIM ACOSTA, CNN POLITICAL CORRESPONDENT: This is a big game changer, Kyra. Good morning. Good to see you.

You know, there are probably two winners that came out of the Ames straw poll over the weekend; Michele Bachmann for having won the poll and Rick Perry, for having beaten Mitt Romney, without even competing in that state.

You know, he had his big announcement Saturday in South Carolina and then in Iowa -- and then in Iowa guess what he did? He went to Michele Bachmann's hometown, the town she was born, the town where she announced her campaign a few weeks ago. And he went right after the Tea Party vote, which is a big base of her support, basically saying that he would like to have the Tea Party backing him. Here is what he had to say.

(BEGIN VIDEO CLIP)

GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: I have heard people say, wait a minute. You Tea Party types, y'all are angry. We're not angry. We're indignant.

We're indignant at the arrogance and the audacity that this administration is showing about the values that are important to the people of America.

(END VIDEO CLIP)

ACOSTA: He will be doing some more campaigning in Iowa later today. And, you know, he told reporters out there when he arrived on the ground that he's accustomed to doing this kind of politicing, Kyra because after all, he won three elections down in Texas as governor there. And e went to a lot of small towns. He's going to be doing the same thing in Iowa.

So, look out, Michele Bachmann. She spent the last several weeks, trying to knock Tim Pawlenty out of the race. Now she has Rick Perry to worry about. Kyra?

PHILLIPS: Oh, watching closely, Jim. Thank you very much.

As Jim just mentioned, there's a new energy and new momentum in Michele Bachmann's campaign. She's riding high after narrowly beating fellow Congressman Ron Paul in the Iowa straw ballot.

(BEGIN VIDEO CLIP)

BACHMANN: Issue after issue after issue, I've been at the tip of the spear and I've been a champion for people on these issues. I've been the fighter. So, people want to know, who can we trust? Who can we believe? Who is going to fight for us when they're in Washington? They see that I've demonstrated that.

(END VIDEO CLIP)

PHILLIPS: Well, at the bottom of the hour, we're going to take a closer look at Bachmann and her campaign.

Well, Iowa is a critical proving ground for candidates and for Tim Pawlenty, it proved his troubled campaign was doomed. Deputy political director Paul Steinhauser in Washington now. So, Paul, Pawlenty finished third, about middle of the pack. So, why is he dropping out while the others who finished behind him are staying in?

PAUL STEINHASUER, CNN DEPUTY POLITICAL DIRECTOR: Great question. But you know what? Pawlenty, low on cash and with no obvious roots in a nomination (ph), he called it quits.

So, Kyra, what went wrong? Maybe we'll start with Tim Pawlenty himself as a candidate. Maybe he was too mild mannered, too nice for this GOP electorate, especially this conservative GOP electorate right now, which is pretty angry and wants to hear tough Michele Bachmann fired away at Barack Obama, the president.

Also, let's go back to our debate back in June in New Hampshire, where a lot of people say Pawlenty messed up. He had a great opportunity to go after Mitt Romney over what he called Obamneycare, and he didn't do it. That was a big stumble, a lot of people say.

And then how about his campaign cash numbers? Beginning in July, we saw those second-quarter numbers, and they were underwhelming. So, he placed all his chips on Iowa in the straw poll, Kyra. He put all of his remaining money there. Didn't pan out.

Here is what he said yesterday in the Sunday talk shows.

(BEGIN VIDEO CLIP)

TIM PAWLENTY (R), FORMER PRESIDENTIAL CANDIDATE: If we didn't do well in Ames, we weren't going to have the fuel to keep the car going down the road. But also, there's a lot of other choices in the race. And for me, what I brought forward, I thought, was a rational, established, credible, strong record of results, based on experience governing a two-term -- governor of a blue state. But I think the audience, so to speak, was looking for something different.

(END VIDEO CLIP)

STEINHAUSER: So, to your point, why did people who finished below him, why are they still in the race? Well, the guy who finished right behind them, Rick Santorum, the former senator from Pennsylvania, he's still in the race. I spoke to him Saturday night, after the camp, after the results. He said listen, I am the little engine that could. He's on a shoestring budget. Here is what he told me.

(BEGIN VIDEO CLIP)

RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: We were in range of three. I mean, you know, we felt like here is a guy that spent a million bucks or more in this, and we spent a fraction of that. And here we are, within a few hundred votes of him. And I feel very, very good about that.

Hopefully, the media will start paying a little more attention to us because they certainly haven't been doing much.

(END VIDEO CLIP)

STEINHASUER: That's why you'll see Santorum, Herman Cain and some of the others, Kyra, who have shoestring budgets stay in this race.

But who are the top three right now? Take a look. Well, first of all, Romney. Still the frontrunner nationally. Also the frontrunner big-time in New Hampshire. Listen, Bachmann now is by far the frontrunner in Iowa, if she wasn't so before, so she is now. And Perry rising in the polls, brand new to the race.

I guess right behind them, you've got Ron Paul, who did very well, came in a close second in Ames. And also, don't count out Jon Huntsman.

Kyra, this is an exciting race. We're going to watch it.

PHILLIPS: We're all watching closely. It is getting more and more exciting. Paul, thanks so much.

And today, President Obama kicks off his bus tour. We were telling you about that last week. And the White House is insisting that the focus is on the economy, not the Republican challengers. But he will be awfully close. He begins in Bachmann's home state in Minnesota, then he travels to Iowa and Illinois.

Athena Jones at the White House for us this morning. Athena, what are the themes we're likely to hear from the president?

ATHENA JONES, CNN CORRESPONDENT: Well, Kyra, I should let you know, he's about to take off any minute to head to Minneapolis. He will hop on a bus, visit five towns in three states over the next three days. He'll be hosting town halls in most of these stops. And what the White House is calling a World Economic Forum at one town in Iowa.

The focus will be on jobs, which we know is issue number one for voters. And we expect to hear him mention some ideas for spurring hiring. Things like extending the payroll tax cut, extending unemployment insurance, passing a road construction bill, passing these pending free trade agreements with Colombia, Panama and South Korea and patent reform. These are ideas we have heard him talk about, all part of a plan that he hopes can help spur hiring if these ideas can get passed, of course.

It is important to note that he's facing a really pessimistic public right now. Our latest CNN poll shows that 71 percent of respondents said that there were few jobs in their communities, and only 29 percent thought there would be more jobs in their area this time next year. So, that's really the big challenge the president is facing, trying to show people or convince people that things are going to get better and that he has a plan to make them get better. Kyra?

PHILLIPS: All right. Athena Jones at White House. We'll be talking more as the president hits the road.

Well, as the president takes off on this Midwest bus tour, he also sits down our with Wolf Blitzer. The Obama interview with our Wolf Blitzer, tomorrow at 6:00 p.m. Eastern time.

Hosni Mubarak is accustomed to appearing in public in swanky, custom-made Armani suits. But not this morning. He's in a Cairo courtroom is in a gown on a gurney behind a wire cage.

CNN International's Ralista Vessileva here to talk more about this. This is quite the opposite of what we're used to seeing Mubarak look like.

RALISTA VESSILEVA, CNN INTERNATIONAL CORRESPONDENT: Absolutely. It's incredible, isn't it, Kyra?

PHILLPS: Yes. You can't - it's -- you can't stop watching.

VESSILEVA: The former president of Egypt of more than 30 years appearing on a hospital gurney in a cage, just like a common criminal. He appeared there with his two sons. He heard the ruling. The judge postponed the trial for another three weeks, until September 5th.

And from now on until the verdict, Kyra, we will not be seeing pictures anymore. The judge ordered no TV cameras anymore until a verdict is reached.

So, this is where things stand. He, of course, facing charges of ordering deadly violence that killed protesters against him. And also corruption. So, we will just be following the story through reporters there is in the courtroom but will not be seeing those pictures.

PHILLIPS: What's the reality of how things stand there now? I mean, we cannot forget those images. Remember, we talked about it for hours and hours, days and days? All the protesters there in Tahrir Square. I mean, it really turned the tide with regard to politics and human rights. And we haven't talked about that for a while.

Now we're seeing Hosni Mubarak in a cage in the courtroom.

VESSILEVA: Absolutely. And what has happened, one of the things that have happened, of course that people are there on Tahrir Square, out and freely protesting their demands. There was also reaction outside the courtroom today, people throwing stones at each other. Supporters of Mubarak and people who oppose him, who want him to stand trial for the deaths of more than 800 people. So, people are expressing what they feel.

However, the police and the security forces have been withdrawn from other places, like the Siani area near the border with Israel, where I want to read a headline from "The International Herald Tribune" today saying that, quote, "The police have all but disappeared from the northern Sinai since the Egyptian revolution and the smuggling business has grown so exponentially that Hamas, the militant group controlling Gaza recently decided to limit car imports to 30 a week for fear of pollution and traffic congestion."

Because of the relaxed borders, because of the unrest in neighboring Libya as well, they're able to smuggle more cars. So, they're making -- it's a very profitable business. They're making more than $2,000 a car, the smugglers. So, there's so many cars being snug smuggled and no police to keep things in check that Hamas has been imposing controls. It's just amazing.

They say the police will come back, but it seems they're more focused on the political unrest and political issues rather than policing the borders.

PHILLIPS: We'll talk more next hour. Thanks, Ralista.

VESSILEVA: All right. Looking forward to it.

PHILLIPS: All right. This morning, people are also talking this morning about what happened after a concert stage collapse in Indiana.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Make sure you got her neck.

UNIDENTIFIED MALE: One, two, three.

(END VIDEO CLIP)

PHILLIPS: We'll have more on the heroic efforts to help the victims in a live report.

(COMMERICAL BREAK)

PHILLIPS: Stories making news "Cross Country." The hacking group known as Anonymous strikes BART, San Francisco's transit system. It appears that passenger information like names and phone numbers, was posted online. BART is also warning riders about a protest that Anonymous has planned for today.

Sheriff's detectives in Los Angeles are considering misdemeanor charges against rapper The Game after he allegedly tweeted the phone number of a sheriff's station. The Game, who's real name is Jason Taylor, says on his Twitter page it was an accident. Meanwhile, dispatchers and deputies were flooded with phone calls.

And who ripped off the Rembrandt? Someone stole this masterpiece from the Ritz Carlton hotel lobby in Marina Del Rey, California. It's called "The Judgement." And it's worth about $250,000. The piece dates from around 1665 and was part of an art exhibit.

The Indiana State Fair is reopening this morning with a memorial service for the victims of a terrifying stage collapse. Five people were killed when a powerful gust of wind knocked down metal scaffolding over the stage on Saturday night.

CNN's Susan Candiotti has more now on the heroic acts to help save those victims.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): When the stage canopy collapsed at the Indiana State Fair on Saturday night, everyone who could run did. Moments later, something remarkable happened. Fans started running back, toward the stage, dozens of them coming together to lift hundreds of pounds of scaffolding and debris off trapped victims.

Using broken chairs as stretchers. In all, some 40 people were injured. The National Weather Service estimates winds at the time of the collapse were between 60 and 70 miles per hour. The governor of Indiana nearly moved to tears by the quick response to the tragedy.

UNIDENTIFIED MALE: Individuals who ran to the trouble, not from the trouble. The character that we associate with our state, people don't have to be paid to do it.

CANDIOTTI: Brook Shnel and Elizabeth Pillger were 12 rows from the stage when the sky darkened and winds kicked up. They decided to head for cover and barely made it out.

UNIDENTIFIED FEMALE: The wind was so heavy in a circular motion and I was holding on to her like this, and we made it to the aisles and we turned around and we heard the like -- and we watched the stage collapse.

UNIDENTIFIED FEMALE: By the time we made it to the aisle all I can remember is looking back at her and looking at the stage and seeing the thing just completely fall down.

I mean, my main thing that I just remember is seeing the guy that was up in the lighting and I just saw him completely just timbering down.

CANDIOTTI: On a gray Sunday as the rain poured down, friends and relatives grieved for the victims. The 23-year-old Alina Bigjohny of Fort Wayne was among the five people killed. She was about it to start a new job, teaching.

ARTURO PENA, JR., FORMER HIGH SCHOOL CLASSMATE: She was a good person and she was very smart, and caring, loving. And she would do anything for anybody.

(END VIDEOTAPE)

PHILLIPS: Susan Candiotti is joining us live from the fair. Now, it was closed yesterday, Susan. Will it reopen today?

CANDIOTTI: Yes, it will. And, of course, the question is, how do you ever get things back to normal? As you know, Kyra, right now that memorial service is going on.

But then after that, at the top of the hour, the fair will reopen. That means midway, that means all the exhibits. And, you know, interestingly enough, after that wind gust came through, none of the other exhibits, none of the rides on the midway were damaged in any way. They were virtually unscathed after this system came through. But, of course, investigators will have their hands full, trying to figure out what happened here and whether this tragedy could have been prevented.

In the meantime, what about all the concerts that they had scheduled? Big names are coming in the rest of the week, including Janet Jackson, for example, and Maroon 5. Well, they're still trying to figure out what to do about that. They might reschedule one of those concerts and make an announcement about that later today, I'm told.

PHILLIPS: All right. Susan Candiotti, appreciate.

Earn six figures without a college degree? Yes, they're out there. We'll tell you about it after the break.

Also, housing slump -- what housing slump? This place is going for 160 million bucks. We'll take you on a tour.

(COMMERCIAL BREAK)

PHILLIPS: Let's hit some showbiz headlines for you.

"Rise of the Planet of the Apes" roles the box office for the second straight weekend. It's taken in at about $105 million in 10 days. "The Help" debuted at number two.

HLN host and "The View" star Joy Behar just got married in a private ceremony in New York. It was long time coming, too. She and her new hubby, Steve Janowitz, have been together for more than 25 years.

And "30 Rock" star Tina Fey has given birth to her second daughter. The baby's name? Penelope Athena. She is also mom to 5- year-old Alice.

All right. Forget about foreclosures and underwater mortgages. The only thing underwater about this place is its multiple swimming pools. In a London home can be yours for the mere price for 160 million bucks.

Ralitsa, who can afford $160 million home? Please tell me that.

VASSILEVA: Well, that's the question we asked the real estate agent. And he said, you know, rock stars would love to have this, but not all of them can afford this. However, interestingly enough, actually, there are people who are dying to buy these properties. They see it as a solid investment.

This one, costing, as you said, more than $160 million. We see there this is one of the many salons, that's how they describe them, in the house. And the furniture is just to give the future owner an idea as to what he can do.

But the real estate agent says, you know, people come in. They have their own architects and designers and they put their own stamp on their property. So --

PHILLIPS: I think it should go to someone who plays the piano as well.

VASSILEVA: Yes.

PHILLIPS: You mentioned salons. The only salon I know is a hair salon. Does it come with that?

VASSILEVA: Those are the salons, which is what they call them, I guess the living rooms. So, different living rooms.

(LAUGHTER)

VASSILEVA: When we saw the pool and those are the bathrooms.

And it's got several kitchens. One is a regular European kitchen for everyday cooking. There's a special one for when you have guests, you know, you need to cook bigger meals and possibly have help to help you. So, it is amazing.

What's amazing is that the properties of luxury of these high- end luxury houses, estates, have gone one-third -- prices have gone up one-third since 2009. While the rest of the prices have slumped in Britain, people are snapping up these properties.

PHILLIPS: Gosh, I'd like to meet these people and find out exactly how they made all that money so we could all retire.

VASSILEVA: Yes.

PHILLIPS: Ralitsa, thanks.

All right. Well, no college degree and making 100 grand? It sounds almost as good as affording one of those $160 million homes.

Alison Kosik at the New York Stock Exchange -- OK, where are these jobs? What are these jobs?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: OK. So, I know you're going to think no way, but hear me out. These are jobs where the majority of workers don't have college degrees. And get this -- the top 10 percent -- they make six figures.

So, take a look. The top three of these jobs compiled by monster.com show that number three is a massage therapist. The Labor Department says this is a growing field that can give you a lot of flexibility with your time. You don't need a diploma. But you do need to be trained and licensed.

Number two in this list, security director. They usually begin as a security guard. They can move up the ranks. There's high turnover in this field. So, if you stick with it, you're rewarded.

OK. And number one job here is nuclear power reactor operator. So, this area is expected to grow if new plants are built, operators get extensive on-the-job training. So, they don't need to be college educated.

But, Kyra, remember, these are exceptions to the rule. Remember, people with college degrees generally earn almost twice as much as those with only a high school diploma.

But nice to know some jobs out there where you don't need a college diploma -- college degree.

PHILLIPS: That third -- that's right, college degree. I'd like to know what it takes for that third position. You would think you would need a college degree for that one.

All right. Wall Street, boy, we had a rough week last week. Keep our fingers crossed, it will be a little bit calmer, yes?

KOSIK: Exactly. And it is expected to be calmer. But I'll tell you what. After witnessing what I did last week, anything is going to be calmer than that. You know, it was one of the most volatile weeks ever for the Dow.

It looks like the Dow is going to be opening a bit higher today. And, once again, you look past. You know, in the last week, the past five sessions, the Dow has made triple-digit moves. I mean, just incredible to watch. The last two of them were gains. So, we could be on a winning streak, we hope.

The big surprise, merger story of the day, that's grabbing the headlines, Kyra, is Google getting into the cell phone hardware business by Motorola, Mobility, for $12.5 billion, which should generate some excitement in the tech sector today. Wall Street always like to see deal-making getting done -- Kyra.

PHILLIPS: Alison, thanks.

Michele Bachmann on message and on a roll. We're going to take a closer look at her big win in Iowa and what it means for her presidential bid.

And they're being called the best little towns in America. We're going to tell you who rose to the top of CNN Money's ranking of the best places to live. That's in about 20 minutes.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now.

(VIDEO CLIP PLAYS)

PHILLIPS: Pretty powerful pictures. It was all caught on a phone there.

Five people were killed when a gust of wind, estimated at 60 to 70 miles an hour, blew over the scaffolding at the Indiana state fair concert. Nine people remain in the hospital. Memorial for the victims is being held at this hour at the fairgrounds.

Google is buying Motorola Mobility for $12.5 billion. The company says acquiring Motorola will, quote, "enable Google to super charge the Android ecosystem and enhance competition in mobile computing."

And in Cairo, Egypt, today, former President Hosni Mubarak on a gurney and behind the steel cage. A judge postponed his trial until September 5th and said he will not allow any more cameras in court until a verdict is reached.

In Iowa, voters weigh in and Michele Bachmann rises up. Her weekend victory in the straw poll pushes her into the top tier of Republicans running for the White House. And it's a field that changed dramatically over the weekend.

Senior political editor Mark Preston is in Washington. So, Mark, what's your message that seems -- whoops, we went to dark there.

We're here. We're still here. I promise.

Hi, Mark. Sorry about that. I went away for a second.

Let's talk about the message that seemed to resonate with the Iowa voters.

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Yes, no question. Look, Michele Bachmann certainly got a huge victory, Kyra, this weekend with the Iowa straw poll. Her message was basically the economy.

But let's not forget that she is a social conservative and those Iowa straw poll voters are a big block of that Iowa straw poll. So, the appeal that she made is that she's the person who can come to Washington and she can turn things around. So, a big victory from Michele Bachmann.

The big question, though: did she peak too early? You know, last night, she was in Waterloo. She spoke at a Republican county fund-raising dinner. Rick Perry also spoke there.

But let's listen to what Michele Bachmann had to say about the economy at this dinner.

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN (R-MN), PRESIDENTIAL CANDIDATE: Enough is enough with the debt. It's completely changed the flavor, completely changed the complexion in Washington, D.C. That's why the Tea Party has been the best antidote to the out-of-control spending that we have seen. Rather than dissing the Tea Party, we should be praising the Tea Party in Washington.

(END VIDEO CLIP)

PRESTON: And there you have it, Michele Bachmann in Waterloo, Iowa, last night. No surprise that she was propping up the Tea Party, a very, very important constituency in the Republican presidential nomination and, quite frankly, probably helped Michele Bachmann win the Iowa straw poll yesterday, Kyra.

PHILLIPS: And, Mark, you were in New Hampshire this weekend, with Rick Perry, Mitt Romney, Jon Huntsman. What do you think? How different is this race today than it was a week ago?

PRESTON: Well, it's altered in a big way. Look, Tim Pawlenty, the former Minnesota governor, got out of the race on Sunday. And now, we have three in the top tier right now of candidates we're looking at. We're looking at Mitt Romney who continues to be the front-runner. But we have Rick Perry as well and now Michele Bachmann.

Let's not count out Jon Huntsman, though. He is somebody who thinks that he can appeal to moderate voters, especially if someone like Mitt Romney were to stumble.

Now, Kyra, we'll see Michele Bachmann in South Carolina, for several stops over the next few days. We're also going to see Rick Perry making his way around between these three states -- New Hampshire, Iowa, South Carolina. And Mitt Romney is going to be focusing all his time in August right now in New Hampshire -- Kyra.

PHILLIPS: OK. Mark, thanks so much.

As Mark mentioned, it was a pretty big weekend for Republican presidential hopefuls in Iowa. And besides, the debate in the straw poll -- also we've talked about and we saw the fact that one candidate dropped out and another dropped in.

CNN contributor L.Z. Granderson and Will Cain are here with their scorecard. They want to talk about their winners, their losers.

Guy, good to see you.

Will, let's go ahead --

WILL CAIN, CNN CONTRIBUTOR: Good morning.

PHILLIPS: Good morning. Good morning.

L.Z. GRANDERSON, CNN.COM CONTRIBUTOR: Good morning.

PHILLIPS: Why don't we start with the losers? Will, you say biggest loser for you, Jon Huntsman. Why?

CAIN: Well, Mark just touched on it. There's been kind of this undercurrent -- at least in the media -- that Jon Huntsman provides a serious alternative to people who don't define themselves by their opposition to Barack Obama, but more in opposition to his ideas and his policies.

But the voters, largely, have thought Jon who? I have to say after the debate in the straw poll results -- it looks like the voters are right. Jon Huntsman right now, my analysis of him is, uh.

PHILLIPS: All right. And as we're talking about presidential hopefuls -- L.Z., you say actually your loser was John Boehner.

GRANDERSON: Yes, I do. He is trying to get control of his party. And seeing the success of the Tea Party candidates at the Iowa straw poll does not help his case. He knows that he may be able to get Michele Bachmann to win amongst her conservative group. But in a general election, she doesn't appear very electable. So, in his mind, he's got to find a way to not get rid of the Tea Party but get them at least to understand they need to make sure they get someone who is more moderate so they can woo independent voters and Iowa didn't help matters.

PHILLIPS: And to turn it around, you say your winner, on the other hand, L.Z., is Michele Bachmann.

GRANDERSON: Yes, absolutely, because look, she's in it to win it. She's got power. You have to reckon with her.

And whether or not she's electable in a general election doesn't matter right now. What matters right now is who has power and influence, and we can't deny the fact that she has both. And, you know, there's also a really good side is that she's the first woman to actually win the Iowa straw poll. I think that says a lot about how the country has progressed in terms of this thinking in terms of gender equity. So, I think that's a good thing, too.

PHILLIPS: Meanwhile, Will, you say your winner is Mitt Romney?

CAIN: Yes. I think with Rick Perry's entrance into the race, he and Michele Bachmann take up the same space. It's like two actors in the same movie being nominated for an Oscar. They split the vote and the other guy benefits. The other guy in this case is Mitt Romney.

PHILLIPS: Meanwhile, the two of you agree on one thing, a mutual winner. And that is that President Barack Obama.

L.Z., give us the 15-second why. I'll let Will do the same thing.

GRANDERSON: Well, it's obvious, right? I mean, Michele Bachmann does not appear to be someone who can be a true candidate in a general election. So, as horrible as his numbers have been, his approval rating is, as horrible as what we saw on Wall Street was, he wins because if Michele Bachmann actually comes out ahead in this, the people aren't going to vote for crazy. And she still registers as crazy with a lot of independents.

PHILLIPS: Oh, I don't know. If you go back decades, there's a lot of people who vote for crazy, guys. That seems to be part of the political norm.

And, Will, you agree, President Obama coming out a winner as well?

CAIN: Yes. Look, I think if you were asking the Obama administration to lay out their probability chart, right now, the Republican field is pretty high on the good side of their probability chart. I don't think they're excited about Rick Perry.

But, look, here's the deal -- President Obama is an extremely talented politician. He's a liberal ideologue in my book. But he is so good at selling it, he's put forth a transformative health care bill. He's made this country transformed in two years.

And what are we as conservatives doing, we're messing around with the likes of Michele Bachmann, and Rick Perry and even Mitt Romney. Until a Chris Christie or a Paul Ryan comes around, I think the Obama administration remains a winner and remains pretty happy.

PHILLIPS: Will and L.Z., thanks, guys.

CAIN: Thanks.

GRANDERSON: Thank you.

PHILLIPS: Will smokers -- you bet.

Smokers out there, what will it take to make you quit? Maybe a graphic warning like this? Oh, my next guest isn't so sure it's worth the effort or the money.

(COMMERCIAL BREAK)

PHILLIPS: Opening bell is just about seven minutes ago.

Alison Kosik, it's looking pretty good. The Dow is up. So, we're off to a good start.

KOSIK: We are, strong opening. The Dow up 131 points. You remember, we ended higher on Thursday -- 423 points higher. On Friday, 125 points higher.

Can we go for the triple digit triple? We'll see.

You know, it's always this way, where we start off. It isn't necessarily where we end up. But we are seeing strength in financials. Bank of America, JPMorgan Chase -- those shares are moving higher. Also some bellwether companies, Alcoa, G.E., and Caterpillars. This is good to see -- these bellwether companies are kind of indicators of where the economy is going. And those shares are up as well.

We'll see if we can carry it through to the closing bell today, right now, once again. Up 133 points on the Dow -- Kyra.

PHILLIPS: All right. Alison, thanks.

Well, if you are a smoker, would seeing a graphic pic of this guy here right on your pack of smokes make you quit? OK. How about this one?

Over the next year, cigarette packages will get these graphic warnings. Just one more attempt to get Americans to quit smoking. The FDA claims that these will actually make at least 200,000 people quit in 2013 alone.

CNN contributor Bob Greene isn't quite buying the hype. And he writes about it on CNN.com in his op-ed piece.

So, Bob, why?

BOB GREENE, CNN CONTRIBUTOR: Well, you hope it hurts. They have to keep trying something.

But the reason it may not work, you would think, is that 45 years after the first warning labels went on packs of cigarettes, there are still 46.6 million adult smokers in the United States.

And you wonder if anyone in this country, either a smoker or a nonsmoker who sees these new labels is going to say, boy, I didn't know that. Smoking is bad for you? Smoking can make you sick and kill you?

It seems like there's a certain bottom line of people who are going to keep smoking, even the ones who would love to be able to quit, that nothing is going to scare 'em away.

PHILLIPS: So, Bob, let me ask you this -- we seem to be able to talk about the numbers of people that smoke, and the CDC, you know, reports those. But you see graphic pictures like these are already being used, similar ones, in Canada, Brazil, the U.K. Is there any proof out there at all that images like these actually convince a smoker to stop?

GREENE: Well, the CDC, Centers for Disease Control, believes that at least it makes them stop and think about it. And at least it makes people who -- maybe young people who are going to smoke for the first time think twice about it.

But the statistic that sort of floors me is that, again, according to the CDC, every day in this country, 2,200 adults start for the first time to smoke on a daily basis. So, they've got to try something.

PHILLIPS: So, let me ask you this. Why don't we see like, say, if you think of all the people killed by drunk drivers, right -- why don't we see pictures of wrecked cars and corpses on bottles of liquor or heart attack victims on the packages of potato chips or, up next, the fast food restaurants? Why do you think that cigarettes get singled out like this, in this particular way?

GREENE: Well, of course, a lot of people make that very point, Kyra, that, you know, if the government gets too involved in everything we do, it's overbearing. But I think of all the products you just named, cigarettes are probably the only one that if they were being introduced for the first time today, if they were a brand new product, they would never be allowed to go on the market.

I mean, there's too much evidence that it will end up killing you. So, they try to do this, but -- they also try to do it, as you know, by taxing them. I was in the gift shop in a hotel in New York, and a single pack of cigarettes there, 20 cigarettes, cost $18.30. So, they're trying taxes. They're trying these gruesome new pictures.

But, in the end, as you walk down the street today, you'll see that some people -- nothing seems to get to 'em.

PHILLIPS: Bob Greene, thanks for weighing in.

You can actually read Bob's latest piece about the cigarette pack warnings at CNN.com/opinion. If you like it, you can join the conversation and leave a comment for him.

CNN Money's annual ranking of the best small towns in America is out. And we're going to tell you which cities top the list, after the break.

And 17-year search is finally over. A scrap yard worker in Ohio returns the World War II medals he found years ago in an old car.

(COMMERCIAL BREAK)

PHILLIPS: Checking news cross country now:

In Orlando, megachurch pastor found dead in a New York City hotel room. Zachary Tims built one of the biggest congregations in central Florida and was seen nationwide on the Word Network. CNN affiliate WESH says the cause of death has not yet been determined.

Police rescued an Ontario, Canada man, after he fell 30 feet into the Niagara Gorge. They say the three men were exploring when the 27- year-old fell. He's been treated for a broken leg and head injury.

For 17 years scrap yard owner Rocky Cummins has been searching for the owner of these World War II medals that he found in a junk car. Well, Cincinnati affiliate WLWT says that finally Rocky's search is over. James D. Brofft (ph) says that his late father's medals had been given to another relative when they went missing and he's thrilled to have them back.

Well, when it comes to where we live, here are some of the things that Americans care about: great job opportunities, top-notch schools, safe streets, lots of things to do. Money Magazine and CNN Money is out with their annual list of best small places to live. And CNN's Poppy Harlow has them all.

Where should we start?

POPPY HARLOW, CNNMONEY.COM: Well, my hometown did not make the list this year. It did last year, Kyra. But let's -- let's go through the top three. All right, let's start out with Solon, Ohio, right outside of Cleveland. Unemployment rate 8.2 percent, well below the national average there. A small town but they've got a pretty big tax base, a lot of big employers there. And that is critical.

You have Nestle based there, you have L'Oreal, so a lot of good jobs.

Also, hometown to the world-renowned Cleveland clinics, so a lot of good jobs there and schools. All of these towns have great schools. In Solon, Ohio, they have Ohio's best school district.

All right, let's move on to number two on the list, Milton, Massachusetts, right outside of Boston, population 27,000, 6.6 percent unemployment and very, very good on the jobs front. Home prices there Kyra, have not been hit since the peak of the market in 2005. They've got a top-notch school system. The only down side to Milton, high taxes, Kyra. PHILLIPS: Ok now, what small town are you from again? Isn't it -- isn't in Michigan?

HARLOW: It's Minneapolis.

PHILLIPS: It's Minneapolis.

HARLOW: It's Minneapolis, for -- but one Minnesota town always gets on the list. And there is one on the list this year. You have to go to CNNMoney.com to find out what that is. It's not number one -- it's not number one though, Kyra, that Minnesota town.

But I will tell you number one is Louisville, Colorado, population 18,000; Unemployment 6.3 percent.

(CROSSTALK)

PHILLIPS: Wow.

HARLOW: They have tons of good jobs. Tech jobs, telecom, aerospace, health care. You name it. Again, same story with housing there. Their home prices have not been hit in the housing crisis. You can get a three-bedroom house there for less than you can and Boulder which is right nearby, the lowest crime rate in all of Colorado.

So three top places to live in the country and I want to play you this some fun things we've got. If you go to the site, we have a list of all the towns with the most available jobs, with the best job markets and also this is a fun one this year. Fan favorite food, Kyra. You take a picture of your favorite food from your town, you send it in via iReport and then everyone votes on it. My favorite food is -- do you have any idea, Kyra?

PHILLIPS: Oh, I could guess a lot of things. Tell me, what is it?

HARLOW: It's cheese -- it's cheese curds, totally Minnesota.

PHILLIPS: Oh my, that's so Wisconsin, too. Where I grew up in the Midwest.

HARLOW: I know that Kyra.

PHILLIPS: But we love our fish fry and our cheese curds and our beer.

HARLOW: Yes.

PHILLIPS: Let's not forget that.

All right, Poppy. Thanks to you.

HARLOW: Absolutely. Absolutely.

PHILLIPS: We'll turning overseas now, an American is pistol- whipped and kidnapped in Pakistan. We're getting the latest on the investigation. A live report, right after the break.

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PHILLIPS: Well, police in Pakistan have made little headway in the search for a kidnapped American. Warren Weinstein works for a development company that's based in Virginia. And apparently a gunman broke into his home Lahore over the weekend and pistol whipped and took him away. So far there have been no claims of responsibility or demands.

CNN's Reza Sayah is covering it for us though, live at Islamabad, Pakistan. Reza, is there anything else that you've been able to find out?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Unfortunately, not a lot of new information about this kidnapping Kyra. I don't think there's any doubt that Warren Weinstein's wife and family desperately want to know where he is and if he's ok. But it seems neither the U.S. embassy here in Islamabad nor the Pakistani police have any information about his whereabouts and his condition.

The only bit of new information we have is that Pakistani police are telling us that his three security guards who were working that morning when he was kidnapped and his driver has been detained for questioning. Police say they are not suspects at this point, but they only have them for questioning. In Pakistan, the law says you can detain someone for up to 72 hours for questioning and we are still in that 72-hour window.

Weinstein kidnapped early Saturday morning around 3:00 a.m. in an upscale neighborhood in Lahore. According to police at least eight assailants, eight gunmen broke into his home, overpowered the three security guards who were very well-trained according to police, retired military commandos, pistol whipped his driver, eventually left with him.

And Kyra it seems at this point the focus is on the three security guards and the driver. Not necessarily because they're being suspected, but because they seem to be the only witnesses to this kidnapping.

PHILLIPS: All right, we'll follow the investigation. Reza thanks.

Checking stories that making news later today, the three Dougherty siblings caught after a nationwide hunt appear in a Pueblo, Colorado courtroom this morning at 11:00 Eastern.

And Republican presidential candidate Rick Perry of Texas speaks at the Iowa State Fair at 12:15 Eastern.

And President Obama hosts a Town Hall event in Cannon Falls, Minnesota, at 12:45 Eastern Time.

Well, we're following lots of developments in the next hour of CNN NEWSROOM. Let's go and check in first with Jim Acosta in Washington -- Jim.

JIM ACOSTA, CNN POLITICAL CORRESPONDENT: Kyra, from fried butt on a stick to buttering up Republican voters, the Iowa straw poll is over, but the real race for votes begins. And I'll have some more on the new player in the race, Rick Perry in just a few.

ROB MARCIANO, AMS METEOROLOGIST: And I'm Rob Marciano on the CNN Severe Weather Center.

A rough weekend with record setting rains in New York. Plus, a deadly storm that moved through the Indiana state fair. We'll break down the anatomy of that storm. Plus, how you can protect yourself while at outdoor event. That's in the next hour.

MARTIN SAVIDGE, CNN CORRESPONDENT: I'm Martin Savidge Aruba. It's been two weeks since Robyn Gardner went missing while snorkelling. Authorities have detained her traveling companion; they are suspicious it may not have been an accident. He's going to be in court in just a short while. He could walk free. We'll be here with the story -- Kyra.

PHILLIPS: All right, thanks guys.

Also, next hour, a soldier steps up to help a little boy who just lost his dad. The latest twist in a story that touched all of our hearts.

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PHILLIPS: "Big Play" with Jeff Fischel. Big lesson here: you never go to the White House without your ID.

JEFF FISCHEL, HLN SPORTS: The rules are the same for everybody, right?

PHILLIPS: Dodo Desmond, that's his new nickname.

FISCHEL: Desmond Bishop of the Green Bay Packers, boy, he learned the hard way. It cost him a chance to meet the President. The Super Bowl winner, the Green Bay Packers, they always get invited to the White House.

PHILLIPS: Except for Desmond.

FISCHEL: He got there on Friday, he got there.

PHILLIPS: He was behind the pen.

FISCHEL: But he wasn't -- he was not allowed in. No license. No ID. No shoes, no shirt, no service. 6'2" 238-pound linebacker -- everyone knows who he is -- but he was not allowed in.

Afterwards he tweeted, I forgot my ID on the plane this time, but next year -- and then he added one of those smiley face emoticons. He also tweeted, "Though disappointed, I'll live vicariously through my fellow teammates." PHILLIPS: Poor guy. You know, they're ranting him in the locker room, giving him the worst time.

FISCHEL: Oh, man, they better win another Super Bowl, right?

PHILLIPS: Exactly.

FISCHEL: Baseball, the Atlanta Braves Dan Uggla had a 33-game hit streak, the longest this season -- in fact, the longest in five years in Major League Baseball. This was his chance, right here to extend it to 34. The blooper in the right field. Watch Chicago Cubs Darwin Barney, fully extends, steals it. Great catch on Uggla. Uggla had one more chance rounding out the seventh. So the streak is over.

And who doesn't remember Dennis Rodman, one of the most loquacious and colorful and I do mean colorful players in NBA history.

(CROSSTALK)

FISCHEL: So colorful -- that's right -- but serious actually this time. Rodman was inducted into basketball's Hall of Fame over the weekend.

(BEGIN VIDEO CLIP)

DENNIS RODMAN, BASKETBALL HALL OF FAME INDUCTEE: I didn't play the game for the money. I didn't play the game to be famous. What you see here is more just -- well, illusion that I love to just be an individual that's very colorful.

(END VIDEO CLIP)

FISCHEL: Things about his family and children, as well. Saying, you know, really I haven't been the best husband, I haven't been the best father. He really opened up in a way I guess guys only like Dennis Rodman do.

And what an up and down day as you watched yesterday for golf's Keegan Bradley was missing several putts. Final round of the PGA Championship when he hit this one to recover. A triple bogey at 15. I mean Van de Veldean right there.

But he recovered. Goes to a playoff and becomes the third player ever to win his first ever appearance in a major tournament. Goes all the way back almost 100 years.

Bradley calls his win unbelievable, a dream. He's the PGA champion.

PHILLIPS: Here is the best part because you know I'm such an avid golfer. Once Tiger hit the tour, that's all people can talk about. Tiger, Tiger, Tiger. He's phenomenal. This, that and then they thought, he's a guy that's going to dominate the game. We've seen what happened there.

Now you're seeing these young kids like Keegan and Ricky Fouler and Rory McIlroy who we love come in there and play some unbelievable golf -- not a perfect game -- and win.

FISCHEL: That's right. And the last three years straight, every major winner has been a new guy who hadn't won before.

PHILLIPS: It's awesome.

FISCHEL: Of course, Keegan's story is great. And I guess you're talking to him next hour, right?

(CROSSTALK)

PHILLIPS: Yes. Yes he's going to be right here on set. Yes, because the tournament as you know is right here in our backyard.

FISCHEL: Right down the street, right.

PHILLIPS: I'm going to try and talk him into a few tips as well.

(CROSSTALK)

PHILLIPS: Pat Bradley.

FISCHEL: Pat Bradley as well. So you should know.

PHILLIPS: I bet he was on the phone. Ok, tips? You know, help me out here. I also want the sports psychologist, I want a session with him. Jeff, thanks.

FISCHEL: Ok.

PHILLIPS: All right.

A wild weekend shakes up the race for the Republicans for the White House. We've got the winners, the losers, and the potential game changer.

First up, Michele Bachmann. She begins the week with a big win, the coveted --