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Genesis Crashes in Utah Desert; Iraq Approaching Civil War?

Aired September 08, 2004 - 13:30   ET

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

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


MILES O'BRIEN, CNN ANCHOR: All right. You're going to have to remind me of these other missions, precisely the ones you were involved in, that were attempts to go to Mars and didn't do so well.
Just take us through what happens to the scientific team, having spent, in many cases -- in this case around 20 years, from idea to this day, and to see this happen, it's got to be such a crushing thing.

STEVE SQUYRES, MARS SCIENTIST: Well, when you lose one completely, it's a very, very sick feeling. I mean, you -- sometimes it happens instantly. Sometimes it sort of dawns on you gradually that something's been lost.

This situation is sort of different. This is one where the samples are on earth. All those samples that were so carefully collected, they are here on earth. The question is what kind of state they're in. And that's not going to be known until a very thorough investigation of the contents of the sample canister has been undertaken.

So, there's, I'm sure, a great sense of unease and uncertainty and concern on the part of the scientists. But I'm sure there's hope, as well.

O'BRIEN: Well, and hope is what this business is all about, after all. And you sort of have to approach it that way. But we should remind folks that it was considered such a delicate payload that they didn't even want it to land via parachute at eight miles an hour, much less at 100 miles an hour. And it was very important that it not be exposed to the earth's atmosphere.

What really are the chances of any science coming out of it?

SQUYRES: I absolutely have no idea, Miles. I really don't. I think it's way, way too early to speculate on that, until there's been a complete recovery and securing of the payload.

O'BRIEN: Give us a sense, if you will -- as we leave you here -- just the risky nature of this business. People tend to take these things for granted because of so many successes on the part of NASA, but a lot of times, space can really bite you, can't it?

SQUYRES: That's right. This really underscores just how difficult the things that NASA and the things that JPL do are. These are extraordinarily difficult things, bringing samples back to earth. This is the first time that something like this had been attempted, bringing back extraterrestrial materials this way.

It's a very, very tough business. It's an extremely unforgiving one. And what this says is that we should learn from the failures and cherish the successes.

O'BRIEN: Steve Squyres, good words to leave it with -- the principle investigator on the Mars Rover Expeditions, Spirit and Opportunity -- still operating on Mars. There you go -- from the absolute pinnacle of success to what lies behind me.

Thank you, Steve -- Kyra?

PHILLIPS: Well, Alan Greenspan indicates the rubber is finally about to hit the road for the U.S. economy. The Federal Reserve chief went to Capitol Hill today to talk economic indicators.

He says he sees strengthening in consumer spending and housing starts, and that business investment remains solid. But he sounded a cautionary note on August retail numbers. Greenspan also said surging oil prices don't seem to have fueled inflation fears.

Well, more signs of trouble in the airline industry. Rhonda Schaffler joins us now live from the New York Stock Exchange with the latest from there -- Rhonda?

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: Hi, Kyra.

You know, it's nearly three years since 9/11, and the nation's airlines are still struggling to recover. Just this morning, Delta Airlines says it's going to slash six to 7,000 jobs over the next year-and-a-half. That is 10 percent of its workforce.

In addition to cutting jobs, Delta plans to slash employee pay and benefits. Delta's also going to close its hub in Dallas/Ft. Worth. It's all part of a plan to save $5 billion by 2006. Despite all the cost-cutting, the carrier says bankruptcy remains a, quote, "real possibility." Delta shares are now down more than seven percent here at the big board.

And JetBlue shares are under pressure, down about one percent. The low-cost carrier has been one of the few U.S. airlines to remain profitable in recent quarters. But now, it's warning third quarter earnings will be hurt by the Florida hurricanes -- Kyra?

PHILLIPS: All right. You're talking about all these budget changes, what about these other airlines, charging you more to talk to a real, live person?

SCHAFFLER: Can you believe this? Yes...

PHILLIPS: Yes, I can believe it.

SCHAFFLER: It's going to cost you more if you actually want to speak to a human. US Airways and Continental are the latest airlines now to slap on extra fees if you don't book your flight online. The two carriers are imposing surcharges of five to $10 on flights purchased on the phone or at airport ticket counters. They join other airlines in trying to save on personnel costs.

Here's what's happening on Wall Street right now. Stocks are just edging lower as investors weigh the comments from Fed Chief Alan Greenspan. Dow is down seven points; Nasdaq slightly lower.

That is the very latest from Wall Street. Still ahead, college tuition costs continue to rise, but the sticker shock may be a bit less painful this year. I'll tell you why later this hour. Here's more LIVE FROM right after this.

(COMMERCIAL BREAK)

PHILLIPS: Drive-by shootings, Fallujah firefights, and more dead Americans are making news in Iraq this hour. We get the latest from CNN's Walter Rodgers; he's in Baghdad.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN CORRESPONDENT: There are days when Iraq very much seems like a country up for grabs. Last week, the distinguished British Royal Institute of International Affairs released a report saying if current trends continue in Iraq, the country could well slip into a bloody civil war.

There was an upswing of violence again today, yesterday, and the day before. The fighting was centered in Sadr City. U.S. soldiers fighting the Mehdi Army there. Today, however, the fighting seems to be in Fallujah, in the Sunni Triangle. U.S. aircraft bombing suspected Iraqi rebel command and control centers there.

Recall that on Monday of this week, seven U.S. Marines were killed outside Fallujah in a deadly suicide car bomb attack on their transport vehicle. In the last four days, 17 U.S. service personnel have been killed in Iraq. Still, the American generals' here strategy, at least with regard to Fallujah, seems to be to encircle the city, lock it down, but do not commit American troops to more ferocious fighting there as we saw in April, earlier in this past year.

Another reason for that restraint at this point could well be political. No president running for reelection wants to go into an election with a spike in American casualties just a few weeks before the public goes to the polls.

But if Americans are dying in moderate numbers, the Iraqis continue to die in more substantial numbers. There has been a rash of assassinations of public figures here, hospital directors, police detectives, even politicians. The assassinations, of course, are launched by the insurgents, aimed at destabilizing the American attempt to build a Democratic society here.

Walter Rodgers, CNN, Baghdad.

(END VIDEOTAPE)

O'BRIEN: Still feeling the effects of Frances: The storm system is still causing flash floods along the Atlantic coast. We'll have details for you just ahead.

Also, the cost of college tuition is on the rise. Is that news? I don't know. Well, is there any relief in sight? There's a good question. Details just ahead in our business report.

And crying foul at the U.S. Open: Controversial calls highlight the semifinal match between Serena Williams and Jennifer Capriati. We'll break it down for you just ahead.

(COMMERCIAL BREAK)

O'BRIEN: Much of the eastern seaboard is getting pounded by the remnants of Hurricane Frances. Right now, President Bush is getting a firsthand look at the devastation in Saint Lucie County, just weeks after he damaged the -- or toured damage from Hurricane Charley.

Before arriving, the President signed a $2 billion aid package for victims of both storm.

CNN's Gary Tuchman shows us how one neighborhood is coping in the aftermath.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Let's get whatever is left in the freezer.

TUCHMAN (voice-over): A neighborhood get together in Palm Beach Gardens, Florida.

UNIDENTIFIED CHILD: Hey, I remember this taco meat.

TUCHMAN: Where neighbors who have been without electricity since the arrival of hurricane Frances try to eat their frozen food before it goes bad. During daylight hours, the lack of power is tolerable. But as night falls, it gets increasingly trying.

(on camera): In all honesty, has this made everyone in the family a little more irritable than usual?

UNIDENTIFIED FEMALE: Oh, yes, very irritable.

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED FEMALE: I left today for a while.

TUCHMAN (voice-over): With the help of a flashlight, we talked to Cindy and Pat Rappelle (ph), proud parents of two girls, who, like countless children throughout Florida, lived through a dark and scary weekend.

(on camera): What did you think was going to happen to you and your sister and your mom and dad that night?

DAISY: We were going to die.

TUCHMAN (voice-over): Ten-year-old Daisy's parents are more grateful than anything their children are OK; but now, days later, are getting a bit impatient for power.

UNIDENTIFIED MALE: Every time you go to bed, and even going and sleeping, you're sweating. And it's just continually hot.

TUCHMAN: That's why they're staying outside as long as possible, across the street, at the Markwiths (ph) house.

UNIDENTIFIED MALE: I started to take cold showers and washing the dishes. It's, you know, sometimes impossible. You've got to boil the water and you've got to use bleach. It's -- it gets frustrating. After four or five days, it starts wearing on you.

TUCHMAN (on camera): About two million Florida households are still without power. That works out to be about four million people, about one quarter of the population of the entire state.

(voice-over): The whole Rappelle family is sleeping in the living room with the battery powered TV on to provide a night-light of sorts. Their living room gets an occasional refreshing breeze, a Florida night so much different than the one now ingrained in their memories.

(on camera): When you become a mom, what are you going to tell your kids about this hurricane?

UNIDENTIFIED CHILD: It was really bad.

TUCHMAN: And I bet you'll protect them as well as your parents protected you, right?

UNIDENTIFIED CHILD: Yes.

(END VIDEOTAPE)

(WEATHER UPDATE)

PHILLIPS: Elsewhere across America this hour, more trouble for Lionel Tate. He's the Florida teen, you may remember, whose murder conviction for killing a young playmate was overturned on appeal back in January. Well, yesterday, he was arrested again, allegedly for violating probation after being caught out of his house and armed with a knife. He was supposed to be under house arrest for a year.

In Aiken, South Carolina, police are looking for a Robber who used a pitchfork to stick up a bank. The culprit pitched the fork outside when he was done. And while the weapon was rusty, the getaway was clean.

Barry Bonds scoring his 698th career homer. Check it out. It happens to be his 40th so far this season, by the way. That gives the San Francisco outfielder eight 40-homers seasons overall. That ties him with Hank Aaron's National League record. San Francisco still lost to Colorado last night, though, 8-7.

(COMMERCIAL BREAK) PHILLIPS: Work it, girls. It's not even officially fall yet, but fashionistas are already focused on spring 2005, so is my entire crew in the control room. Well, it's Fashion Week in New York City, eight days of style that kicked off this morning with Kenneth Cole. Also showing today, the label Imitation of Christ. Almost 80 different designers will unveil their latest designs. Coming up Later on LIVE FROM, Miles will have the inside scoop, the backstage skinny from a fashion insider.

And from skinny to skin, cheese cake at McDonald's? Oh, yes. Playboy.com thinks it can find some behind-the-counter at McAdee's. The Web site that brought us the women of Enron, well, the women of Starbucks, the women of Wal-Mart, says it's now looking for hamburger hotties for a woman of McDonald's nude pictorial. Will we ever be able to order a shake with our fries with a straight face again?

O'BRIEN: Gives new meaning to the term buns, doesn't it?

PHILLIPS: Or Big Mac, however you want to look at it it.

O'BRIEN: All right, of course, McDonald's is where my kids are working as of now.

I'm sorry, we got to talk about tennis firsts before we talk about college tuition. I'm so upset about the college tuition report.

Let's talk about the U.S. Open. Serena Williams, who obviously didn't look up the dress code there, feels also upset and cheated. She's out of the U.S. Open after losing a critical quarterfinal match, marred by a wrong call from a chair umpire. It happened at the top of the third set with Jennifer Capriati, who won the match.

By the way, the chair umpire won't be back. She's been barred from the officiating for the remainder of the tournament, a lot of good that does Serena.

(STOCK MARKET REPORT)

O'BRIEN: That does it for this hour. Another hour lies ahead. We'll begin the program in just a few moments with an update on that Genesis crash in the Utah desert. Stay with us.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired September 8, 2004 - 13:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: All right. You're going to have to remind me of these other missions, precisely the ones you were involved in, that were attempts to go to Mars and didn't do so well.
Just take us through what happens to the scientific team, having spent, in many cases -- in this case around 20 years, from idea to this day, and to see this happen, it's got to be such a crushing thing.

STEVE SQUYRES, MARS SCIENTIST: Well, when you lose one completely, it's a very, very sick feeling. I mean, you -- sometimes it happens instantly. Sometimes it sort of dawns on you gradually that something's been lost.

This situation is sort of different. This is one where the samples are on earth. All those samples that were so carefully collected, they are here on earth. The question is what kind of state they're in. And that's not going to be known until a very thorough investigation of the contents of the sample canister has been undertaken.

So, there's, I'm sure, a great sense of unease and uncertainty and concern on the part of the scientists. But I'm sure there's hope, as well.

O'BRIEN: Well, and hope is what this business is all about, after all. And you sort of have to approach it that way. But we should remind folks that it was considered such a delicate payload that they didn't even want it to land via parachute at eight miles an hour, much less at 100 miles an hour. And it was very important that it not be exposed to the earth's atmosphere.

What really are the chances of any science coming out of it?

SQUYRES: I absolutely have no idea, Miles. I really don't. I think it's way, way too early to speculate on that, until there's been a complete recovery and securing of the payload.

O'BRIEN: Give us a sense, if you will -- as we leave you here -- just the risky nature of this business. People tend to take these things for granted because of so many successes on the part of NASA, but a lot of times, space can really bite you, can't it?

SQUYRES: That's right. This really underscores just how difficult the things that NASA and the things that JPL do are. These are extraordinarily difficult things, bringing samples back to earth. This is the first time that something like this had been attempted, bringing back extraterrestrial materials this way.

It's a very, very tough business. It's an extremely unforgiving one. And what this says is that we should learn from the failures and cherish the successes.

O'BRIEN: Steve Squyres, good words to leave it with -- the principle investigator on the Mars Rover Expeditions, Spirit and Opportunity -- still operating on Mars. There you go -- from the absolute pinnacle of success to what lies behind me.

Thank you, Steve -- Kyra?

PHILLIPS: Well, Alan Greenspan indicates the rubber is finally about to hit the road for the U.S. economy. The Federal Reserve chief went to Capitol Hill today to talk economic indicators.

He says he sees strengthening in consumer spending and housing starts, and that business investment remains solid. But he sounded a cautionary note on August retail numbers. Greenspan also said surging oil prices don't seem to have fueled inflation fears.

Well, more signs of trouble in the airline industry. Rhonda Schaffler joins us now live from the New York Stock Exchange with the latest from there -- Rhonda?

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: Hi, Kyra.

You know, it's nearly three years since 9/11, and the nation's airlines are still struggling to recover. Just this morning, Delta Airlines says it's going to slash six to 7,000 jobs over the next year-and-a-half. That is 10 percent of its workforce.

In addition to cutting jobs, Delta plans to slash employee pay and benefits. Delta's also going to close its hub in Dallas/Ft. Worth. It's all part of a plan to save $5 billion by 2006. Despite all the cost-cutting, the carrier says bankruptcy remains a, quote, "real possibility." Delta shares are now down more than seven percent here at the big board.

And JetBlue shares are under pressure, down about one percent. The low-cost carrier has been one of the few U.S. airlines to remain profitable in recent quarters. But now, it's warning third quarter earnings will be hurt by the Florida hurricanes -- Kyra?

PHILLIPS: All right. You're talking about all these budget changes, what about these other airlines, charging you more to talk to a real, live person?

SCHAFFLER: Can you believe this? Yes...

PHILLIPS: Yes, I can believe it.

SCHAFFLER: It's going to cost you more if you actually want to speak to a human. US Airways and Continental are the latest airlines now to slap on extra fees if you don't book your flight online. The two carriers are imposing surcharges of five to $10 on flights purchased on the phone or at airport ticket counters. They join other airlines in trying to save on personnel costs.

Here's what's happening on Wall Street right now. Stocks are just edging lower as investors weigh the comments from Fed Chief Alan Greenspan. Dow is down seven points; Nasdaq slightly lower.

That is the very latest from Wall Street. Still ahead, college tuition costs continue to rise, but the sticker shock may be a bit less painful this year. I'll tell you why later this hour. Here's more LIVE FROM right after this.

(COMMERCIAL BREAK)

PHILLIPS: Drive-by shootings, Fallujah firefights, and more dead Americans are making news in Iraq this hour. We get the latest from CNN's Walter Rodgers; he's in Baghdad.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN CORRESPONDENT: There are days when Iraq very much seems like a country up for grabs. Last week, the distinguished British Royal Institute of International Affairs released a report saying if current trends continue in Iraq, the country could well slip into a bloody civil war.

There was an upswing of violence again today, yesterday, and the day before. The fighting was centered in Sadr City. U.S. soldiers fighting the Mehdi Army there. Today, however, the fighting seems to be in Fallujah, in the Sunni Triangle. U.S. aircraft bombing suspected Iraqi rebel command and control centers there.

Recall that on Monday of this week, seven U.S. Marines were killed outside Fallujah in a deadly suicide car bomb attack on their transport vehicle. In the last four days, 17 U.S. service personnel have been killed in Iraq. Still, the American generals' here strategy, at least with regard to Fallujah, seems to be to encircle the city, lock it down, but do not commit American troops to more ferocious fighting there as we saw in April, earlier in this past year.

Another reason for that restraint at this point could well be political. No president running for reelection wants to go into an election with a spike in American casualties just a few weeks before the public goes to the polls.

But if Americans are dying in moderate numbers, the Iraqis continue to die in more substantial numbers. There has been a rash of assassinations of public figures here, hospital directors, police detectives, even politicians. The assassinations, of course, are launched by the insurgents, aimed at destabilizing the American attempt to build a Democratic society here.

Walter Rodgers, CNN, Baghdad.

(END VIDEOTAPE)

O'BRIEN: Still feeling the effects of Frances: The storm system is still causing flash floods along the Atlantic coast. We'll have details for you just ahead.

Also, the cost of college tuition is on the rise. Is that news? I don't know. Well, is there any relief in sight? There's a good question. Details just ahead in our business report.

And crying foul at the U.S. Open: Controversial calls highlight the semifinal match between Serena Williams and Jennifer Capriati. We'll break it down for you just ahead.

(COMMERCIAL BREAK)

O'BRIEN: Much of the eastern seaboard is getting pounded by the remnants of Hurricane Frances. Right now, President Bush is getting a firsthand look at the devastation in Saint Lucie County, just weeks after he damaged the -- or toured damage from Hurricane Charley.

Before arriving, the President signed a $2 billion aid package for victims of both storm.

CNN's Gary Tuchman shows us how one neighborhood is coping in the aftermath.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Let's get whatever is left in the freezer.

TUCHMAN (voice-over): A neighborhood get together in Palm Beach Gardens, Florida.

UNIDENTIFIED CHILD: Hey, I remember this taco meat.

TUCHMAN: Where neighbors who have been without electricity since the arrival of hurricane Frances try to eat their frozen food before it goes bad. During daylight hours, the lack of power is tolerable. But as night falls, it gets increasingly trying.

(on camera): In all honesty, has this made everyone in the family a little more irritable than usual?

UNIDENTIFIED FEMALE: Oh, yes, very irritable.

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED FEMALE: I left today for a while.

TUCHMAN (voice-over): With the help of a flashlight, we talked to Cindy and Pat Rappelle (ph), proud parents of two girls, who, like countless children throughout Florida, lived through a dark and scary weekend.

(on camera): What did you think was going to happen to you and your sister and your mom and dad that night?

DAISY: We were going to die.

TUCHMAN (voice-over): Ten-year-old Daisy's parents are more grateful than anything their children are OK; but now, days later, are getting a bit impatient for power.

UNIDENTIFIED MALE: Every time you go to bed, and even going and sleeping, you're sweating. And it's just continually hot.

TUCHMAN: That's why they're staying outside as long as possible, across the street, at the Markwiths (ph) house.

UNIDENTIFIED MALE: I started to take cold showers and washing the dishes. It's, you know, sometimes impossible. You've got to boil the water and you've got to use bleach. It's -- it gets frustrating. After four or five days, it starts wearing on you.

TUCHMAN (on camera): About two million Florida households are still without power. That works out to be about four million people, about one quarter of the population of the entire state.

(voice-over): The whole Rappelle family is sleeping in the living room with the battery powered TV on to provide a night-light of sorts. Their living room gets an occasional refreshing breeze, a Florida night so much different than the one now ingrained in their memories.

(on camera): When you become a mom, what are you going to tell your kids about this hurricane?

UNIDENTIFIED CHILD: It was really bad.

TUCHMAN: And I bet you'll protect them as well as your parents protected you, right?

UNIDENTIFIED CHILD: Yes.

(END VIDEOTAPE)

(WEATHER UPDATE)

PHILLIPS: Elsewhere across America this hour, more trouble for Lionel Tate. He's the Florida teen, you may remember, whose murder conviction for killing a young playmate was overturned on appeal back in January. Well, yesterday, he was arrested again, allegedly for violating probation after being caught out of his house and armed with a knife. He was supposed to be under house arrest for a year.

In Aiken, South Carolina, police are looking for a Robber who used a pitchfork to stick up a bank. The culprit pitched the fork outside when he was done. And while the weapon was rusty, the getaway was clean.

Barry Bonds scoring his 698th career homer. Check it out. It happens to be his 40th so far this season, by the way. That gives the San Francisco outfielder eight 40-homers seasons overall. That ties him with Hank Aaron's National League record. San Francisco still lost to Colorado last night, though, 8-7.

(COMMERCIAL BREAK) PHILLIPS: Work it, girls. It's not even officially fall yet, but fashionistas are already focused on spring 2005, so is my entire crew in the control room. Well, it's Fashion Week in New York City, eight days of style that kicked off this morning with Kenneth Cole. Also showing today, the label Imitation of Christ. Almost 80 different designers will unveil their latest designs. Coming up Later on LIVE FROM, Miles will have the inside scoop, the backstage skinny from a fashion insider.

And from skinny to skin, cheese cake at McDonald's? Oh, yes. Playboy.com thinks it can find some behind-the-counter at McAdee's. The Web site that brought us the women of Enron, well, the women of Starbucks, the women of Wal-Mart, says it's now looking for hamburger hotties for a woman of McDonald's nude pictorial. Will we ever be able to order a shake with our fries with a straight face again?

O'BRIEN: Gives new meaning to the term buns, doesn't it?

PHILLIPS: Or Big Mac, however you want to look at it it.

O'BRIEN: All right, of course, McDonald's is where my kids are working as of now.

I'm sorry, we got to talk about tennis firsts before we talk about college tuition. I'm so upset about the college tuition report.

Let's talk about the U.S. Open. Serena Williams, who obviously didn't look up the dress code there, feels also upset and cheated. She's out of the U.S. Open after losing a critical quarterfinal match, marred by a wrong call from a chair umpire. It happened at the top of the third set with Jennifer Capriati, who won the match.

By the way, the chair umpire won't be back. She's been barred from the officiating for the remainder of the tournament, a lot of good that does Serena.

(STOCK MARKET REPORT)

O'BRIEN: That does it for this hour. Another hour lies ahead. We'll begin the program in just a few moments with an update on that Genesis crash in the Utah desert. Stay with us.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com