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CNN Live Today

Missing Student; California Quake; President's Rating; U.S. Open; Top Five Tips: Financial Freedom

Aired June 17, 2005 - 10:00   ET

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

DARYN KAGAN, CNN ANCHOR: I'm Daryn Kagan. Let's go ahead and take a look at what's happening now in the news. Or we go right to our breaking news? Let's go right to our breaking news.
We were telling you before Bill's good-bye, there is a new development in the case of a missing 18-year-old Alabama student. We're going to go to CNN's Karl Penhaul in Palm Beach, Aruba, with the story.

Karl, hello.

KARL PENHAUL, CNN CORRESPONDENT: Daryn, prosecutors have told us in the last few minutes that there has been a fourth arrest of a fourth suspect in connection with the disappearance of Natalee Holloway. That disappearance of a male came at 6:25 this morning, shortly after dawn. Police have given us very few extra details apart from to say it is a male, age 26 years old. That would make him the oldest of the four suspects now in custody in connection with Natalee's disappearance.

Daryn.

KAGAN: So we don't know anything more, what his connection might be to the other three young men who are already in custody?

PENHAUL: We don't. What one would assumes is that since the other three suspects have been under intense interrogation for the last few days, that this lead could have come from those interrogations sessions. But beyond that, prosecutors and police have given us no specifics as to what has led them to this person and also whether they have seized any particular items during the raid in which that person was arrested.

Daryn.

KAGAN: And still, most important to Natalee Holloway's parent, still no sign of her and no physical evidence about what could have happened to her?

PENHAUL: That is the number one question right now, what did happen or what has happened to Natalee Holloway, because there's no evidence right now, conclusively, to show that she's dead or alive.

Daryn.

KAGAN: Karl Penhaul, live from Palm Beach, Aruba. Once again, a fourth arrest in connection with the disappearance of Natalee Holloway. We will go back to Karl as there are developments.

Meanwhile, we want to head out to California where they are shaking, rattling and rolling again. Fourth time this week, residents have felt the jolt of an earthquake. The latest is a magnitude 6.6. It struck late last night, located off the coast of Northern California, and felt 300 miles south in San Francisco. Our Ted Rollins join us. He's at Cal Tech's seismology lab in Pasadena with more.

Good morning. You staying steady there this morning?

TED ROWLANDS, CNN CORRESPONDENT: So far, so good in terms of steadiness. Seismologists are hard at work and they have been all week trying to analyze all the data that's coming in. You mentioned that last earthquake. They think that is an aftershock of the 7.2, which also hit in the Pacific Ocean off the coast of Northern California on Tuesday.

Meanwhile, down here in Southern California, there have been two significant events this week. They had a 5.2 and then a 4.9 yesterday. And that 4.9 yesterday could be felt pretty much throughout the entire Los Angeles area.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We are in the midst of an earthquake here in Southern California.

ROWLANDS, (voice over): It was felt at the racetrack and in just about every living room in the Los Angeles area.

UNIDENTIFIED MALE: I was in my power lounger and it started shaking. My wife was in the kitchen by the refrigerator. She had to grab the wall and the refrigerator.

ROWLANDS: Yesterday's earthquake was the third in California in less than a week, leaving people to think, there must be a connection. Seismologists say that's possible, but think it's more likely that mother nature is just sending a reminder.

DR. LUCY JONES, U.S. GEOLOGICAL SURVEY: This is not an unusual level of earthquake activity. We live in earthquake country and we should remember it.

ROWLANDS: Yesterday's 4.9 earthquake was centered just north of the city of Ukiah. Some people living near the epicenter reported minor damage.

UNIDENTIFIED FEMALE: It did all the damage to the porch and the eves and everything and to the chimney on the fireplace.

UNIDENTIFIED MALE: It was pretty scary. It was pretty, like, wavy, it felt like. A lot of things - some stuff fell down.

ROWLANDS: Two earthquakes hit the state earlier in the week, a 5.6 near the city of Anza Sunday, and a 7.2 90 miles off the coast of Northern California on Monday. The northern quake set off a tsunami warning that turned out to be a false alarm. Also, a 7.8 quake killed at least 11 people in Chili Monday and a 6.8 hit the Aleutian Islands off Alaska on Tuesday. Seismologists say they plan to study any possible relationship between the earthquakes but don't anticipate proving any sort of link. Meanwhile, until the next one, life goes on.

UNIDENTIFIED MALE: Dark Beauty's a neck in front. Pleasant Thunder alongside these two. Come to the wire in a shaker!

(END VIDEOTAPE)

ROWLANDS: And whether or not we're going to get another shaker, we have to wait and see. Seismologists believe that there's about a one in 20 chance that these two 5s, if you will, down here in Southern California, are just a precursor to a larger event. Folks hoping that is not the case. Waiting and seeing what mother nature has in store for us next.

Daryn.

KAGAN: Yes, I've been hearing the word foreshock as opposed to aftershock.

ROWLANDS: Yes, the foreshock.

KAGAN: Yes.

ROWLANDS: Yes. There's a chance, they say. But as more days go by, the chances that these were foreshocks diminishes greatly. They say usually a foreshock comes within hours of the main event, so we're now, you know, over a day, almost a day from this potential foreshock. The more time that elapses, the better off we are.

KAGAN: All right. Well, you keep your seat belt fastened in the meantime.

Ted Rowlands in Pasadena, thank you.

You know there are people who think there's such a thing as earthquake weather. Kind of a wives tale. Rob Marciano, you've heard . . .

ROB MARCIANO: Really?

KAGAN: You haven't heard of this?

MARCIANO: No. No. But you . . .

KAGAN: That there's earthquake weather.

MARCIANO: And good weather means earthquakes?

KAGAN: I think earthquake weather tends to be kind of clear and warm.

MARCIANO: Well, it's always clear and warm in California.

KAGAN: Well, there you go. That's why they have earthquakes.

(WEATHER REPORT)

KAGAN: In "The Fight for Iraq," the U.S. military launched a major combat operation today against insurgents. About 1,000 Marines, Sailors and Iraqi soldiers are taking part in Operation Spear. The fight is focused around the city of Karabila. That is in the Al Anbar province near the Syrian border. Our Jane Arraf is embedded with U.S. troops in the operation. She reports the city of 60,000 has been virtually taken hostage by insurgents. U.S. forces have found bombs, mines and other explosives set around the city.

Here in the U.S., Representative John Conyers says he's going to keep trying to get the White House to fully respond to the Downing Street Memo. The 2002 British government memo suggests the U.S. fixed intelligence to support its decision to invade Iraq. Thursday, Conyers and other congressional Democrats delivered more than a half million petition signatures to the White House gate. The petition asked for a response to the Downing Street Memo. At a news conference last week, President Bush and British Prime Minister Tony Blair denied prewar intelligence was fixed.

President Bush is now planning a more vigorous defense of the Iraq War, but it will have to make its case with an American public that it become less satisfied with his performance. Our White House Correspondent Suzanne Malveaux joining us this morning.

Suzanne, good morning.

SUZANNE MALVEAUX, WHITE HOUSE CORRESPONDENT: Good morning, Daryn.

President Bush is on his way to Maple Grove, Minnesota. That's where he's going to be talking about his domestic agenda. Most notably, Medicare. But the president also, of course, is dealing with a number of questions, as well as mounting criticism over the U.S. decision to go to war in Iraq in the first place.

This comes amid mounting casualties, both American and Iraqi casualties, in Iraq, including a car bombing that occurred today. Also comes amid a call from some members of Congress, some house lawmakers just yesterday, including two Republicans, who are now introducing a resolution for the Bush administration to set a clear timetable for those U.S. troops to come back home.

Now, the president is facing some daunting poll numbers here as it shows that Americans are losing support when it comes to the U.S. mission in Iraq. A poll that was taken just yesterday by "The New York Times"/CBS News shows, when voters are asked, Americans are asked, how is Bush handling his job as president, 42 percent say they improve but 51 percent say they disapprove. When asked how the president is handling the situation with Iraq specifically, 37 percent say approved, but 59 percent disapprove. And finally, when you ask overall, is the country going in the right direction? Right direction, 33 percent say yes. Wrong direction, 61 percent.

Now, Daryn, look for a couple of things to happen here over the weeks to come. Aides say that the president is going to step up his efforts to try to convince the American people that this U.S. mission in Iraq will ultimately work. Look to Monday, a speech, EU, as well as U.S. summit, to talk about some of the progress there. Look to this coming Friday as well. That's when he's going to be hosting the Iraqi prime minister in the Rose Garden. He will talk about the progress that is made on the political front, as well as the one-year anniversary of Iraqi sovereignty.

A lot that the White House is hoping to get out to the American people. Again, a big public relations push here to convince people that it is well worth it.

Daryn.

KAGAN: Suzanne Malveaux at the White House. Sounds like there's also some yard work going on.

MALVEAUX: There always is, Daryn.

KAGAN: Expect that.

Thank you, Suzanne.

MALVEAUX: Sure.

KAGAN: We'll be looking at Iran in a bit. They are picking a new president. Are the voters really turning out? And what are the options or the table? We'll check.

Plus, play is underway at the U.S. Open. How are the big name doing?

And speaking of big names, Tom Cruise/Katie Holmes, big announcement out of Paris this morning. What they have to say for themselves ahead on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: Well, let's talk some golf. The second round of play is underway at the U.S. Open. Tiger Woods not the most feared challenge facing the world's best golfers. That would be the conditions. This one is a tough course. Mark McKay is in Pinehurst, North Carolina, with the latest.

Good morning.

MARK MCKAY, CNN CORRESPONDENT: Hi, Daryn.

At least we're getting a break with weather. We've got overcast and a bit cool condition, so that's a bit of good news as the field heads out for day number two of the 105th U.S. Open.

As for day number one, playing it safe. That was the rule of thumb here at Pinehurst number two as the course really showed its stuff. You know, considering the challenging layout, it has time and time again been describe as tough but fair. But, you know, you have to play it safe. And many did yesterday. You didn't see many players, at least not the ones with championship credentials, take a whole lot of chances, especially on the turtleback greens and the unforgiving rough. The feeling is, play is going to become tougher as this championship heads into the weekend and it could be one of the quietest golfing majors of the year.

(BEGIN VIDEO CLIP)

TIGER WOODS, TWO-TIME U.S. OPEN CHAMP: Because there's no rollers out here. Think about it. Who's going to hole one from off the sides of these greens, you know? At Augusta, you hearing eagle rollers, you're hearing these big putts made. You don't hear anything out here. You know, the guys are just trying to make pars. And that's just kind of the nature of this golf course.

PHIL MICKELSON, THREE-TIME U.S. OPEN RUNNER-UP: It's really important to get off to a good start here because it play right on the edge today. And if it gets any harder, which I'm sure it will, and any tougher as the week wears on, it's going to be almost impossible to shoot a round under par.

(END VIDEO CLIP)

MCKAY: Boy, and doesn't Phil Mickelson know that at the moment. He is out on the course. He is plus six for the day. Five over four, the championship for last year's Masters champions Phil Mickelson. Of course, the lesser known names, Olin Browne and Rocco Mediate, began with day, Daryn, with the lead. They've been joined at three under par by one other golfer, kind of - just completely went away from me, but - Bob Estes. That's right. Bob Estes is now up there. So you've got some lesser known names making a name for themselves here, Daryn.

KAGAN: Looks like it's going to be like a big scrambled egg. Everything's going to kind of mix up as the weekend goes on.

Thank you, Mark McKay.

MCKAY: I think so.

KAGAN: Thank you.

Coming up, Gerri Willis is here with today's "Top Five Tips." A Father's Day theme, working.

Hello.

GERRI WILLIS, CNN CORRESPONDENT: That's right. Hi, Daryn. Good to see you.

It's Father's Day Sunday. And if you're a father, you know all about the National Bank of Dad. We'll show you how to close it down.

(COMMERCIAL BREAK) KAGAN: Let's go ahead and check the markets. They've been open 53 minutes. Two different stories developing here. On the Dow, it looks like we have a strong day with blue chips leading the gains. The Dow up 45, well 46 points. The Nasdaq, though, things kind of flat, like they've been most of the week. The Nasdaq is down a point.

So if give your dad the Father's Day gift of wealth, maybe you can give him the second best thing, a little financial independence from his kids. CNN Personal Finance Editor Gerri Willis joins us with her top five tips on how dad can raise financially savvy children.

Good morning.

WILLIS: Good morning, Daryn.

Tip number one, you want to start them young. Even as toddlers, when you take them it the store, have them hand the money to the woman or man at the cash register and take the money back. Teach them to start counting. You know, one way to get started is when you're setting the table at night for dinner, have them count out the forks and the spoons. You want them to get used to numbers and money.

KAGAN: You're saying they can pay for their dinner!

American children are bombarded with different advertising messages. Mom and dad have to help them kind of sort through all that.

WILLIS: Hey, Daryn, do you know that kids influence their parents in spending some $1 trillion a year. It's amazing the amount of influence that kids have, and it's mostly because of advertising on television. Your best job, sitting down with your kids and talking with them about what they're seeing on TV and having them associate those goodies with price tags.

KAGAN: Now something that a lot of adults don't like to do, draw up a budget.

WILLIS: Yes, this is tricky, because this isn't fun for mom or dad either. But, you know, kids tend to spend less if they think of the money as their own and not as money you're just giving them for fun or whatever they want to buy. So introduce them to the idea, the concept of budgeting and what it means to spend money over time, to be responsible for your finances.

KAGAN: Here's something that varies family to family, allowance.

WILLIS: Yes, this is very tricky. Some people like to pay their kids for each job they do around the house. Other parents say, no, the kids should have responsibilities that they always follow. Well, one happy median here is to pay them for those special things they do that you might hire somebody to take care of, like cleaning out the garage or something. But giving them an allowance and doing it the same time every week or every month helps them figure out how to handle their money over time. And that's really a critical lesson, Daryn. KAGAN: And then there's credit cards that kids are getting a lot younger today than when you and I were - back in the day, Ger.

WILLIS: Back in the day. Well, you know, I had a credit card in college. And let me tell you, you can learn some pretty intense lessons there. Over 90 percent of college seniors have credit card balances, get this, over $2,800.

KAGAN: Wow.

WILLIS: Now that's a lot of money. The best thing to do, because you're going to have to teach your kids about these credit cards - and let me mention here that colleges are selling the list of their students to the credit card companies. That's what's happening. So if you think you're going to get help from the colleges, forget about it. They're really in on this too. So if you want to teach them how to responsibly manage those credit cards, that plastic, when they're in high school, give them pre-paid cards, that way you're not on the hook for a lot of money. You know exactly how much they're going to spend and they get used it using plastic.

KAGAN: And then when they run out, they run out.

WILLIS: They run out. And then it's over.

KAGAN: Until they say, dad, can I have some more.

WILLIS: Bank of Dad.

KAGAN: Yes.

WILLIS: We're closing down the Bank of Dad, Daryn.

KAGAN: There you go!

Gerri, thank you.

WILLIS: You're welcome.

KAGAN: International news is just ahead. Today, voters head to the polls in Iran. And many of the young people of the country want change but are they voting? Our Christiane Amanpour take as look when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

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