Return to Transcripts main page

CNN Newsroom

Obama Ends Midwest Tour Today; President Obama's Jobs Plan; Obama Holds Town Hall In Illinois; Report on Children of Unemployed; The Best Places to Live; Cafe Reconcile In New Orleans; Murdoch Back Before Parliament

Aired August 17, 2011 - 13:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: And if your choice did not win or if you just want to check out the runners up, we'll have links to them on Suzanne's page at Facebook.com/SuzanneCNN.

All right, the CNN NEWSROOM continues with Randi Kaye. Hey, Randi.

RANDI KAYE, CNN ANCHOR: Hi there, Fred. Thank you very much, have a great day.

Just two more events to go now in the president's three-day tour of the Midwest. This is a live picture right now as we're waiting for the president to speak in Atkinson, Illinois. His next and last stop, though, another town hall in Alpha, Illinois, then it's back to Washington tonight and then off to Martha's Vineyard for vacation tomorrow.

Meanwhile, we just learned the president is now not only putting together a new plan to create jobs and grow the economy, but he plans to announce it in an address to the nation right after Labor Day which is September 5th, that happens to be the same week Congress returns from its summer break. President Obama has been actively consulting with experts in the field of job creation, including company CEOs, to come up with this plan.

The question is how specific will it be and, of course, will it help? The White House officials tell us it's a work in progress, but it will likely include tax cuts and infrastructure ideas that could create jobs, measures that target the long-term unemployed, as well as measures that target specific struggling economic sectors.

Now, they also say the president is working on a debt reduction proposal he'll present to the so-called super committee, as you know, that's the group of 12 lawmakers tasked with cutting at least $1.5 trillion from the federal deficit. Their plan is due at the end of November. And according to the White House, the president's debt plan will go beyond that $1.5 trillion. Now, Republicans, who have been calling on the president throughout this debt crisis to come up with a plan of his own, are responding. Here is Mitt Romney on the campaign trail just a short time ago.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: We appreciate the fact that he's trying to devote some time to it, not just on the bus tour, not just going to be vacationing at Martha's Vineyard, but giving thought to the American people. I would've thought that's what he would have done from day one. And if I'm the next president of the United States, from day one in my term, I'll be working to get Americans jobs again.

(END VIDEO CLIP)

KAYE: Now the president argues he inherited an economic mess bigger than anyone expected.

Joining us now to talk a little bit more about this is April Ryan, White House Correspondent for the American Urban Radio Networks. April, great to have you with us. First, let me ask you, what is your reaction to the president's plan now to address the nation with his job creation plan?

APRIL RYAN, WHITE HOUSE CORRESPONDENT, AMERICAN URBAN RADIO NETWORKS: Well, it's needed. The nation is in the grips of something we've never seen before. We are now in the time when this president and this Congress must act before things get much worse. And the president and the White House are saying that they are going to be aggressive in talking to Congress after the speech, and working with Congress, particularly with the GOP as they were into moving the tax cut issue forward, and the president feels that this is something that they were working on before and they should accept it when he goes to them to aggressively move forward with these initiatives and pass them.

KAYE: April, I want you to just stick with us here for just a few minutes, the president has started speaking there. Let's listen what he has to say for a couple minutes.

(BEGIN LIVE COVERAGE

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I want to acknowledge a few people who are with us today, wonderful, wonderful folks. First of all, our secretary of transportation, pure is own (ph) Ray LaHood is in the house. Our outstanding secretary of agriculture, Tom Vilsack, is here. Mayor Gus Junior is in the house. I told Gus that I didn't have any gray hair either when I took office. So, that's why you know what you have in store for you, right here. But --everybody tells me he is doing a great job.

I want to thank the Waffles family for -- Whiffles rather, excuse me. I haven't had lunch.

(LAUGHTER)

OBAMA: I want to thank --I want to thank the Whiffles family for hosting us here today, please give them a big round of applause. I want to thank Lisa, of Lisa's Place. Where is Lisa? Is that Lisa? Because Secret Service had to shut down the road and do all this stuff, I know some of you guys have not been able to enjoy her outstanding food. So as a consequence, my staff has been, I think, trying to eat up as much as possible. My understanding is I've got a pie coming? Is that correct? What kind of pie?

UNIDENTIFIED FEMALE: Coconut cream and a cinnamon roll.

OBAMA: Coconut cream and a cinnamon roll. I am very excited about that. Coconut cream is one of my favorite pies. So, thank you.

And we also have here -- Congressman Bobby Schilling is here. Now, it is absolutely terrific to be back home. And I just want to, first of all, say to so many of you --and I had a chance when I was still running for the United States Senate, and a lot of people did not know my name. This young lady, she's still got --she's got like a picture from the --

UNIDENTIFIED FEMALE: Will you sign it?

OBAMA: I will sign it, of course I will. And so as we've been traveling through the back roads of Iowa, and now Illinois, it is such a reminder of why I decided to get involved in public service in the first place. You know, we've obviously been going through a tough time in the last two and a half years. And we went through the worst recession since the great depression. We saw eight million jobs lost, four million before I took office and then another four million in the first months of 2009. A lot of small businesses got hit, and so -- you know, I think a lot of times there have been folks who said -- who wonder whether our best days are still ahead of us or are they behind us?

But I will tell you, when I travel through downstate Illinois, when I traveled through Iowa, when I traveled through the Midwest, I am absolutely confident about this country, and the reason is because of you. The reason is because of the American people, because as tough of a time as we've had, there is not a country on earth that would not readily change places with us right now.

We've still got best workers in the world, we've got the best entrepreneurs in the world, we've got the best scientists, the best universities. We have so much going for us, and you see it in a company like this one, I was talking to the Whiffle brothers, and they were telling me they're now expanding. They've been hiring some new folks, they're starting to go into new markets around this region. So, we've got so much going for us --there's nothing wrong with our country right now. There is something wrong with our politics, there is something wrong with our politics.

You know, when you look at this debacle we had with the debt ceiling and raising it, what you realize is is that our politics engaging in partisan brinksmanship and potentially seeing the first default of the United States of America, that that has no place in how we move forward together. When this country is operating off of a common ground, nobody can stop us, but when we're divided, then we end up having a whole lot of self inflicted problems. And the fact of the matter is the economy has gotten better than it was when I first took office.

We've seen, over the last 17 months, two million -- over two million private sector jobs created, but everybody here knows we've still got a long way to go. And it is urgent for us to make sure that we are joining together and not thinking about party first, not thinking about elections first, but thinking about country first. That's the message that we need to send to Washington. There are some --there are some things that we could be doing right now to put our neighbors and our friends, some family members, back to work.

And over the last not just two days, but over the last several weeks, I have been talking about some additional things we need to do. There is no reason why we should not extend a payroll tax cut that put $1,000 into the pockets of every single family out there. That means they've got more money to spend, that means businesses have more customers, that means the economy grows and more people get hired. And we could renew it right now to give businesses the certainty they will have customers not just this year but next year as well. The only thing holding us back is our politics.

It's traditionally a bipartisan idea, there's no reason why we shouldn't pass it. There's no reason why we shouldn't put Americans back to work all across the country rebuilding America. You know, as I was driving in here --as I was driving in here, I saw that a new fire station is being built, thanks to the recovery act. Well, we need roads and bridges and schools all across the country that could be rebuilt. All of those folks who got laid off from construction because the economy went south or the housing bubble burst, they're dying for work. Contractors are willing to come in under budget and on time.

And interest rates are low, so we could finance right now the rebuilding of infrastructure all across America that drove not only unemployment in the construction industry down, but drove unemployment down across the board. And traditionally, that hasn't been a Democratic or Republican issue, that's been an American issue. We've taken pride in rebuilding America. The only thing that's holding us back right now is our politics. We should be passing trade deals right now because, look, the Koreans, they can sell Kias and Hyundais here in the United States. That's great, I want to sell Fords, and Chryslers and Chevys into Korea, and I want all products across the word stamped with three words "Made in America," that's something we could be doing right now.

There's a bill pending in Congress right now that's called the American Events Bill. Basically, it says entrepreneurs who are coming up with good ideas --I'll tell you, if the Whiffle brothers came up with a --with a new strain and wanted to patent it in some way, make it easier for them so that they could market it and make money off of it and hire people for it. We could do that right now, the only thing that's holding us back is our politics.

Over the last --over the last six months, even though the economy has been growing, even though the economy has been recovering, it has not recovered as fast as it could. And some of those things are not in our control. You know, we couldn't control the tsunami in Japan that disrupted supply chains. We could not control what happened in the Middle East that drove up gas prices. We don't have complete control over what happens in Europe with their problems, and all of those things have affected our economy, but there are so many things that we've got control over right now that we could be doing to put people back to work.

And, by the way, there's no reason to think that putting people back to work is somehow in conflict with us getting our fiscal house in order. You know, this downgrade that happened, they didn't downgrade us because America couldn't pay its bills, they downgraded it because they felt that our political system couldn't seem to make good decisions in order to deal with our budget the same way families deal with their budgets.

And so, the fact of the matter is that we came close to a grand bargain, which would've said, we're going to cut spending we don't need in order to pay for the things we do. We're going to eliminate unnecessary programs so we can pay for student loans so they can go to University of Illinois, or the University of Iowa. We know that we've got to invest in basic research, that's part of what made us the most productive agricultural powerhouse in the world.

So, we don't want to cut back on agriculture research in order to pay for it. We've got to get rid of some things. But what we've also said is we've got to do it in a balanced way. We've got to do it in a balanced way.

You know, a couple of days ago, Warren Buffett wrote an op-ed piece in which he said, it's time to stop coddling billionaires. And he pointed out that he pays a lower tax rate than anybody in his office, including his secretary. That doesn't make any sense.

You know, if everybody took an attitude of shared sacrifice, that we're not going to put the burden on any single person, we can solve our deficit and debt problem next week and it wouldn't require radical changes, but it does have to be balanced. I don't want a tax break, as lucky as I've been, if that tax break means that a senior citizen is going to have to pay an extra $6,000 for their Medicare. That's not fair.

I think it makes sense before we ask that student to pay a little more for their student loan, we should ask those oil and gas companies to get rid of some corporate tax loophole that they don't need because they've been making record profits.

KAYE: All right. You've been listening there to President Barack Obama in Atkinson, Illinois, talking jobs, talking debt ceiling, talking all kinds of things.

Still with us is April Ryan, White House correspondent for American Urban Radio Network. We are also joined by Ari Fleischer, who is the former White House press secretary under George W. Bush.

Good to have you both with us.

April, we talked just a moment before about the president and his plan to address the nation with his plan for jobs and how to create jobs after Labor Day.

Ari, I want to get your take on this latest announcement and the timing of it. ARI FLEISCHER, FORMER WHITE HOUSE PRESS SECRETARY: I think the president has made a very bad tactical decision here. He would have been so much better served and the office of the presidency would have been empowered if he had first come out with all the specifics of a new plan and not wait until September and then took this tour to promote the plan across the country. In that way, it really would have been a presidential trip, presidential action aimed at policy.

Instead, he has really diminished the office of presidency and himself to being just another candidate crisscrossing the trail in Iowa with Mitt Romney and with Rick Perry and with others. I don't understand the White House's strategy, thinking, timing or tactics, as they have gone through this August. It just seems they're making a lot of mistakes.

KAYE: April, we haven't heard a whole lot about the president's plan to improve the jobs situation and get people back to work. What do you think needs to happen? What does the president and Congress need to do?

RYAN: That's it, Randi. And I love Ari to death. It's been eight years since we've been on TV together.

But guess what, Ari, you're totally wrong. And without the spin, Congress and the president need to work it out. That's the bottom line.

And this president just had a hard time with Congress trying to get things passed. And the bottom line is the American public. Those who are without jobs. Those who don't have enough money coming in. Those who are under employed. And that's the issue. It's not necessarily all the politics or what's going on, it's about getting the job done. And that's at the end of the day. And that's what people are going to vote for in the polls.

KAYE: Ari, what needs to be in the jobs plan to get it through?

FLEISCHER: Well, I'm a skeptic on what President Obama has left that he can announce that's going to make any difference in terms of private sector employment. He's been in office now for about -- oh, I just looked it up, it's something about 31 months. And by my count, this is going to be his tenth major speech announcing economic plans or job plans. So, on average, about once every three months the president is announcing a new, so-called new major economic jobs program.

And the reason is because nothing he's announced before has worked. I think that we're caught in one of those business cycle where the likelihood is nothing will happen between now and the election that's going to turn that business cycle around. Whoever is the president in 2013, whether it's Barack Obama re-elected for the Republican, is going to be the beneficiary of just the changing climate in the private sector economic cycle.

I think there's very little the president can do other than to create -- make more (ph) government jobs and put more people on the payroll, which, of course, is what the stimulus tried to do and failed to achieve its objectives when we spent a trillion dollars in early 2009.

KAYE: April, I see you shaking your head.

RYAN: I love Ari to death, again, but, Ari, he's got a lot of spin and he's not -- Ari, you're not really directing the issue to Congress. The GOP -- you've got tax cuts. The president is talking about tax cuts. And this is something that the GOP has been pushing. And if indeed this does not happen, if Congress does not push tax cuts, what is the problem? What is the problem?

It's about a coming together. And it's about everyone. All of these incumbents are faced with the realism of people not having jobs and they are seeing what's going on right now.

KAYE: Ari, I want to give you the last word on this --

FLEISCHER: Well, because Congress does have --

KAYE: Go ahead.

FLEISCHER: Congress does have the vital role to play here, but it really does begin with presidential leadership. What I think the president needs to do, he should have done it in August and then taken the bus tour. But not in September, specifics.

Will he support raising the retirement age on Medicare and Social Security to 67 or higher than 67? Will he change the CPI, the Consumer Price Index, so that -- for Social Security, which also effects tax brackets and brings in more revenue?

We need to hear the specifics from the president. It's presidential leadership that drives Congress to action. And, of course, in the United States Senate, they haven't even passed a budget for the last two years in a row, which is a big part of the problem in Washington.

KAYE: Well, you know, we could continue to talk about this for hours. Unfortunately, we don't have that time. But thank you to both of you. Ari Fleischer, April Ryan, appreciate it.

Well, it may turn out to be the biggest scandal in the history of college sports. Allegations at the University of Miami are extraordinary. Players getting gifts of cash, prostitutes, cars, and that's not even the worst of it. You have to hear this report right after this short break.

(COMMERCIAL BREAK)

KAYE: The story I'm about to share with you could turn out, could turn out to be the biggest scandal in the history of college sports. It's unfolding right now at the University of Miami. Sure, the world is no stranger to sports scandals. Powerhouse programs like Ohio State, Southern Cal, Auburn are some of the most recent to receive black eyes for various NCAA rules violations or other investigations.

Well, this latest investigation by one journalists is filled with extraordinary allegations. Yahoo! Sports reports that Miami Hurricane coaches and players broke NCAA rules for eight years between 2002 and 2010. During 100 hours of interviews with investigative journalist Charles Robinson, former booster Nevin Shapiro spilled the goods. He told Robinson he gave lavish gifts to 72 current and former Hurricane players and recruits.

Now, the alleged gifts are shocking. Hundreds of thousands of dollars in cash, prostitutes, cars, rides on his yacht, paid trips and jewelry. Shapiro also tells Yahoo! Sports that he offered bounties for injuring opposing players.

And it gets even worse. Shapiro, the booster, says in one case he paid for an abortion for a woman who claims a Miami Hurricane player got her pregnant.

Charles Robinson spent 11 months investigating Shapiro's allegations. He also audited thousands of pages of financial and business records to examine his claims.

Here is what you should know about Nevin Shapiro. He was convicted for his role in a $900 million Ponzi scheme. He was sentenced to 20 years in prison in June. He first made his allegations about a year ago. Among other things, he says six Miami coaches were aware of his activities. And he said that he did it because, quote, "nobody stepped in to stop me."

We reached out to Miami for reaction and here's what they told us. "The University of Miami takes any allegations seriously, and we will continue to cooperate fully in a joint investigation with the NCAA."

The Miami Hurricanes new football coach, Al Golden, who was hired last December, says he and his team are disappointed in the allegations but see the scandal as a life lesson.

(BEGIN VIDEO CLIP)

AL GOLDEN, MIAMI FOOTBALL COACH: We have to make sure that we prevent that from going forward. So, how do you do that? Well, you do that by getting to the facts. You know, by getting to the truth. And, you know, how did this guy, if he did, how did he get around our players like that? And so I know, me, as a head coach, I want to know. And I know our assistant coaches want to know, because we want to -- we want to make sure it never happens again. It shouldn't happen.

(END VIDEO CLIP)

KAYE: And we've just received a statement from the NCAA's president, Mark Emmert. It says, and I'm quoting here, "if the assertions are true, the alleged conduct at the University of Miami is an illustration of the need for serious and fundamental change in many critical aspects of college sports. This pertains especially to the involvement of boosters and agents with student athletes. While many are hearing about this case for the first time, the NCAA has been investigating the matter for five months."

Next hour we will dig deeper. You'll want to tune in for my interview with Yahoo! Sports reporter Charles Robinson about his 11 month investigation and the impact this scandal may have on the University of Miami and college sports in general.

Up next, here's a question for you. How many kids live in homes right here in America where at least one parent is unemployed? One to two million, three to four million, five to six million, seven to eight million. We'll let you know.

(COMMERCIAL BREAK)

KAYE: And welcome back.

We hear a lot about jobless rates, debt ceilings and the ups and downs of Wall Street. But in today's "Your Money," we're talking children. How the economy is impacting them. The annual "Kids Count" Data Book, by the Annie E. Casey Foundation, released this week, details how many American children are living in homes with unemployed parents. Poppy Harlow joins us now live from New York with much more on this. Hey there, Poppy, so you've looked at the findings. What stands out to you?

POPPY HARLOW, CNNMONEY.COM ANCHOR: It's a very troubling number not only in the amount of kids, Randi, but the increase we've seen. This study that just came out this week shows us, from the 2010 data, that 7.8 million children in this country, right now, live in a home with at least one fully unemployed parent.

That is almost double where it was three years before, in 2007. And what's also troubling, this study outlines, is that African-American kids were nearly twice as likely as white children to have at least one unemployed parent. So, there's a lot of racial disparity here. Now, under employment -- people not making enough to support their family -- that's arguably an even bigger problem.

And this is why. Take a look state by state. The most recent data available for this is the 2009 numbers. Here is what it shows us. We're going to pull up a map. You can see what we're talking about, here. If you look at the state of Mississippi, 39 percent of households there are households where no parent has a full time job. No parent. Kentucky is next on the list, 38 percent. Michigan, Alaska, and then Tennessee. So, all of these states, Randi, are above 30 percent of households where no parent, neither parent, has a full time job. That is a big, big increase from what we saw the previous year, in 2008.

So the situation is getting worse. When you look at the state in the best position, in terms of parents being fully employed, that's in North Dakota. And there's a clear reason for that. It's because the unemployment rate in North Dakota is about three percent and there are so many oil and gas jobs in North Dakota. When you look at income levels, 42 percent or about 31 million Americans lived in low-income families in 2009, that's a two million person increase from 2007. And just, overall, I think what really stood out about the study, Randi, is that 31 million kids live in low income families.

Also, 5.3 million kids, Randi, it says were affected by foreclosures since 2007. That means that their home entered the foreclosure process. So, what this is showing us is just the trickle down affect of the recession, of the jobs crisis that the President just addressed, and what that is doing to kids in America. I think, when you look at it from that lens it's obviously very troubling.

KAYE: Yeah, not just those who are unemployed, it's their families and their children behind them as well.

HARLOW: Right. Absolutely.

KAYE: That is some disturbing information. Poppy Harlow in New York, thank you.

A world class restaurant and youth looking for direction. See how they both come together next.

But first, the results are in, we've got Money Magazine's list of the best places to live. We're taking a look at some of the small towns with less than 50,000 people that made the cut. Can you guess which one we are highlighting today?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: If your commute drives you crazy, this town may be a good fit. Getting to work within this scenic city takes less than 15 minutes. Where does less time in the car mean more fun outdoors? We'll tell you after the break.

(COMMERCIAL BREAK)

UNIDENTIFIED MALE: Where does less time in the car mean more fun outdoors? Hannover, New Hampshire, where biking around town is a popular way to go. At the heart of the city is Ivy League College, Dartmouth, making the typical resident barely in their 20s. And another plus? The natural beauty of the Vermont border and Connecticut river.

UNIDENTIFIED MALE: We have this beautiful surrounding. And it's really fun for someone from more of an urban area to get out here and explore.

UNIDENTIFIED MALE: Coming in at number six on Money Magazine's list of best places to live is Hannover, New Hampshire.

KAYE: In New Orleans, a restaurant that helps troubled teens find their way. Here is Ed Lavandera with part two of our series on Cafe Reconcile.

(BEGIN VIDEO CLIP)

SISTER MARY LOU SPECHA, PBVM, CAFE RECONCILE EXECUTIVE DIRECTOR: It devastated all of our staff. Everybody here.

ED LAVANDERA, CNN CORRESPONDENT: Are you ready to throw your hands up?

SPECHA: Yes. LAVANDERA: The devastating news was the murder of 22-year-old Marvin Watts, a recent Cafe Reconcile graduate, working for one of the top chefs in New Orleans. His senseless murder made Sister Mary Lou Specha want to walk away.

SPECHA: The last thing I said to him was, I say, "Marvin, I love you". That's what I hear in my head every day, and he said, "I love you, too, sister".

LAVANDERA: But it didn't take long for Sister Mary Lou to realize she couldn't give up. She sees inspiration in every face because of young people like Causey Davis, a kid with so much talent and the biggest smile around. Looking for a place to blossom. Causey is 22-years-old -- taught himself to play the piano.

CAUSEY DAVIS: I feel every key that I play is real emotion.

LAVANDERA: Causey's family left New Orleans when he was in high school, he stayed behind and started drifting. Davis said he wasted countless days smoking weed -- no place to call home, he started living out of a car. No future for this young father of two children. He turned to Cafe Reconcile, but the first time he failed a drug test and got kicked out.

What did you think of yourself?

DAVIS: I just felt like a failure.

LAVANDERA: You'd never guess, but Causey's constant smile hides the reality of home life. Now living in this drug-plagued corner of the Treme district in New Orleans.

DAVIS: This is the living room.

LAVANDERA: This is a young man who has almost nothing.

DAVIS: And this is my bedroom. Either it's this or homeless. So it's a roof, and I am grateful for a roof.

SPECHA: The people most vulnerable, the poorest, get judged the harshest, because I think people don't want to see the poor.

LAVANDERA: Thanks to Cafe Reconcile, you can now see Causey Davis working in a fancy New Orleans restaurant, and he's got even bigger dreams.

DAVIS: I have faith. I have a strong belief that I will be successful. And nothing, this time, will stop me. Nothing.

(END VIDEO CLIP)

LAVANDERA: Really, it took a while to just set in the fact that the young man had taught himself to play the piano. You can listen to just how well he played. These kids, they come through - there's a 12-week program at Cafe Reconcile. They move in, it seems like they are only there for a little while, but this is a program that much of the city of New Orleans has adopted. You can see. Go into any restaurant. We went into The Loews Hotel and restaurant there. It seemed like everywhere we turned, the manager there showed us that there was a graduate from Cafe Reconcile. They work in some of the finest restaurants and hotels in the city, Randi.

KAYE: It's so great, Ed, to see that they do have a future and it's helping them quite a bit. But, what is the future of the program there at the cafe itself?

LAVANDERA: Well, they are looking to expand. They are in the middle of a $10 million capital campaign. That building that they're in is about five stories high. They've raised about half of the $10 million. Right now, they can help about 60 kids at a time. They want to double that up to 120. Possibly even more. Emeril Lagasse, of course, the world renowned chef, has donated - his foundation has donated -- half a million dollars to create this kitchen where they can do testing and they can do culinary training for the students. Hold tastings for other people around town for fundraisers. They get a great deal of support from many of the well-known chefs in New Orleans.

KAYE: Well, there are no shortage of those there, so that should be a big help for them and their future. Ed Lavandera, great story. Very inspiring. Thank you.

LAVANDERA: You got it.

KAYE: The British phone hacking scandal is back in the news again. Why James Murdoch may have another date with the British parliament. That story is next.

(COMMERCIAL BREAK)

Four top British police officers are off the hook in the investigation surrounding the tabloid phone hacking scandal in the U.K. An independent panel now says there is no wrong doing by the former head of London's Metropolitan Police and three others. But, there is word today that the British parliament may recall News International chairman, James Murdoch to answer more questions about the case.

Dan Rivers is following the developments in London in today's "Globe Trekking". Dan, I understand that Murdoch's testimony is being challenged by two former executives of the now defunct "News of the World". What's the latest there?

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, and it's not just any old former executives, they are Tom Crone, the former head lawyer of News International and Colin Myler, the former editor of "News of the World". Both taking issue with a rather, sort of, technical part of the evidence that James Murdoch gave.

Basically, James Murdoch told that committee of politicians that he was unaware of a sort of smoking gun e-mail, which contained the transcripts of 35 hacked conversations that was destined for one of his chief reporters. He was unaware of that e-mail when he settled a huge amount of money, almost $1.6 million to someone that was suing the company over phone hacking.

Colin Myler and Tom Crone are saying, hang on a minute, he knew full well about this e-mail. That's a critically embarrassing for him and may mean that he is recalled. Also, his own former legal firm, Harbottle & Lewis, the firm that acted for his company, are also describing Murdoch's evidence as hard to credit, self-serving, inaccurate, and misleading. That's the firm that he used to employ to represent the company. So, it's pretty damning stuff. It may mean that politicians want to have him back again in that room to ask some more questions.

KAYE: So, are they actually saying, Dan, I mean, are they using the word "lie," here and are they saying that he "lied" to the British parliament when he testified?

RIVERS: No, they are saying they want to get him back to clarify issues basically. They have not formally made that decision; they will have to get together and vote on it. It's likely if he does come back, it would be in October or so. But hey are taking this, you know, fairly incrementally, the politicians on this committee. They want to get the facts straight before they make accusations.

They are saying they want to get Tom Crone, this legal guy, and possibly Colin Mylar, the former editor back as well to clarify what they said. So, everybody looks like they will be called back to explain themselves again.

KAYE: Could he face prosecution?

RIVERS: Well, potentially he could. The committee itself has no powers to put him behind bars in practice. They could hold him in contempt of Parliament, which would be a big humiliation, but wouldn't necessarily result in any kind of actual punishment. But this could be looked at by the police if they feel that there is evidence for a crime here called perverting the courts of justice, which is basically sort of interfering with a police investigation. And if they feel he has been trying to sort of hold the facts back, burying this e-mail as part of a settlement to try and stop it from coming up, then potentially yes, he could.

KAYE: All right. Dan Rivers, thank you for the update.

Up next, how Ralph Lauren is changing the face of fashion by taking it off the runway and putting it at your fingertips.

(COMMERCIAL BREAK)

KAYE: When you think of fashion, you may think of this. Models walking up and down a runway or browsing designer shelves as malls and stores. Yes, and usually things we can't afford, of course.

But my next guest talks about changing the face of fashion, taking it from the runway to the information highway. Ralph Lauren is leading the digital pack, so to say, when it comes to combining their products with emerging technologies. Smartphone apps to shop from anywhere, virtual fashion shows where you can instantly buy what you like. And children's books, even interactive windows, where you can shop from a store when it's closed. Yes, after-hours shopping! I love that! This is very cool.

Joining me now from New York to talk much more about this is David Lauren, son of famed designer Ralph and brainchild behind what's making the brand a digital leader. And Tyler Gray, deputy editor at FastCompany.com.

First, because we have to ask, David Tyler (sic), what are you guys wearing today?

TYLER GRAY, DEPUTY EDITOR, FASTCOMPANY.COM : Oh, you don't want to know. Mine's - yes. This is the guy you want to ask that. Not me.

KAYE: OK, well, come on, David, what are you wearing?

DAVID LAUREN: I'm wearing Ralph Lauren.

KAYE: Excellent. Fine choice, I must say. All right, well, let's get to the important stuff here. What inspired you, David, to go the online route?

DAVID LAUREN, EXECUTIVE VICE PRESIDENT OF ADVERTISING, RALPH LAUREN CORPORATION: Well, you know, Ralph Lauren has been a lifestyle brand for years. You've have seen our brand come alive in magazines and in stores. But taking it to the Internet was a way to express ourselves in a much more cinematic way.

And it's really been the ultimate expression for me and for so many people in our company to talk a new way of shopping and a whole generation of people who want to understand our brand in new ways.

KAYE: So, Tyler, this has been pretty successful. Do you see other fashion brands, companies, following suit here?

GRAY: Well, that's the thing. This is uncharted territory. You have a lot of people selling discount things and sort of low-budget things. But the fashion industry is a little bit risk averse when it comes to technology. And they're big into taking risks with art and avant- garde culture. But when it comes to doing technology and going online, it's new ground. I mean, brands maybe like a Burberry or somebody might do something like this. But not quite to the degree Ralph Lauren has done it and not as early.

KAYE: Yes. David, I want our viewers to really understand, I mean, we're not talking about going on to a Web site and buying Ralph Lauren items and products. We're talking about something completely different here. So, if you could, just talk about -- tell us some of your creations and how they differ from just online shopping.

LAUREN: Well, what we have done is created the Ralph Lauren experience on-line. So it's unlike anything any other brand has done. We've created something called the first ever 4-D Experience, which is a four-story tall interactive experience for literally models who walking down Madison Avenue and bottles were spinning over your head and spraying real fragrance. No one had ever seen basically Avatar come to life beyond a movie screen. We took an entire block in New York and brought it to life --

KAYE: I - I - yes. Go on.

LAUREN: We've created online fashion shows that were shopable before anyone did that. We created something called "The Children's Storybook," which is a virtual storybook that parents can shop with their children and literally roll over a video watching these children on an adventure and the shop the clothes that they're wearing.

And again, it's immersive. It's interactive. It's luxury. But it's also fun and takes shopping to a new level, which is cinematic and really just modern.

KAYE: And you really take window shopping to a whole new level. I love the idea that you can shop after hours right at the store window.

LAUREN: Yes. We created something called the first-ever 24-hour shopping experience, which is a touch screen window where you can walk down the street with your dog at night, tap on the glass and shopping you see in the window of the store and buy it.

And you can also read articles, you can get tennis tips and shop the tennis clothing. I have a real immersive experience with Ralph Lauren.

KAYE: Tyler, why does this work? I mean, who would you say would take advantage of this?

GRAY: Well, I mean, that's the thing. Anybody can. That's what makes us so interested in this story at Fast Company was we saw someone doing something in a space where this sort of thing, it hasn't really been done. Not only in fashion, in this particular industry, but with this brand. I mean, this is a brand that relies a lot on legacy and a lot of tradition and a lot that's gone on in the past in embracing those values for the future.

But this is an entirely new direction. It's steering an aircraft carrier, essentially. That's what they've done by moving this stuff online, so that anyone with an iPad or phone or walking by a window at midnight can access.

KAYE: Yes, that walking by the window at midnight, boy, that scares me just a little bit. I'll be too tempted.

But thank you both. It's really fascinating. David, we wish you the best of luck with it. David Lauren, Tyler Gray, appreciate it.

LAUREN: Thank you.

GRAY: Thanks.

KAYE: And for much more about Ralph Lauren's digital content, check out my Facebook page at facebook.com/randikayeCNN. And don't forget to tune in tomorrow. Same "Big I" time, same "Big I" channel.

And next, what your lack of sexual prowess says about your heart, especially you men. The surprising findings from Dr. Sanjay Gupta in less than 90 seconds.

(COMMERCIAL BREAK)

KAYE: It is awkward to talk about, but at least 30 million men in the U.S. have this issue that could be a sign of something far more dangerous. Our chief medical correspondent Dr. Sanjay Gupta tells us more on what's being called the canary in a coal mine.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Randi, the answer will be surprising to a lot of people. It's something that men aren't often comfortable talking about. But with regard to trying to predict a problem with heart disease, possibly having a heart attack later on down the line, erectile dysfunction can be an early warning sign.

About 30 million men have some form of erectile dysfunction, and it's often something that's treated in isolation. But if a doctor is more inquisitive or treats the patient more as a whole, the whole body, they may find there's in fact some problems heart disease.

Take a listen to how Terry Mason, Dr. Terry Mason, who is a urologist at Cook County Hospital puts it.

(BEGIN VIDEO CLIP)

DR. TERRY MASON, UROLOGIST, COOK COUNTY HOSPITAL: I would say that erectile dysfunction is the canary in the coal mine. When men begin to have erectile dysfunction, it's a sign that there's more widespread disease and not just for the heart but throughout all the blood vessels in the body.

(END VIDEO CLIP)

GUPTA: Now, Randi, keep in mind that blood vessels in the body are all potentially subject to disease. So, again, you want to look for early clues. Atherosclerosis or hardening of the arteries, that's something that can develop just about anywhere in the body. And if you want to find, sort of get an early clue that heart disease may be developing, you can look in other places in the body.

Now, I will tell you that men under the age of 50 in particular, if they have erectile dysfunction, that's going to be more of a warning sign for example than as men get older. You diminish the correlation as men get older. But man under the age of 50 having this problem. If they go to get treated, they should probably ask about heart disease as well.

Now, one thing as well I want to point out, Randi, is there's lots of different medications out there. But some of the medications when they were initially developed -- were developed to try and combat heart disease as opposed to erectile dysfunction. So, there's been a correlation there for a very long time.

Again, we're working on this documentary, "THE LAST HEART ATTACK," and part of getting to that point in this country is trying to figure out who is most at risk in preventing the disease from ever developing. Just really quickly as well, as you can see behind me, I'm in Havana, Cuba. A place I have never been here before. Very excited to be here.

We're working on a special about Diana Nyad, one of the most inspiring people I've ever met. She's a long-distance swimmer who wanted to swim from here all the way to the Florida Keys to do something no human being has done. The way she wanted to do it. A remarkable story.

We're also taking a close look at the Cuban health care system. A lot of controversy over this system, but they do have one of the highest life expectancies, one of the lowest infant mortalities, and they spend a fraction of what we spend in the United States.

How do they do it? Is it real? Is it available to everyone? These are questions we're trying to answer. Randi, back to you.

KAYE: Thank you, Sanjay. And be sure to tune in to CNN this weekend, Dr. Sanjay Gupta reports. "THE LAST HEART ATTACK," this Sunday night at 8:00 eastern. Sanjay talks to doctors on the cutting-edge of heart disease prevention, including a former surgeon who developed a radical diet he says can make anyone heart-attack proof in a single month.