Transcripts For CNNW CNN Newsroom 20110721 : vimarsana.com

CNNW CNN Newsroom July 21, 2011



officials say nothing suggests an attack is imminent. they only say recent incidents reinforce the terror threat. and hope for a grand debt fix was dimmed just a bit in washington. some democrats and republicans are picking apart the latest plan with the same old complaints. liberals say it cuts social security and medicare. conservatives say it raises taxes. republicans have refused to raise the nation's debt limit without deep spending cuts and no tax increases. the deadline now is just 12 days away. somalia's president is asking the world for immediate help to feed his country's people. the united nations says more than 3.5 million somalis are threatened by famine. aide workers call the food shortage even worse than the ethiopian famine of the mid-'80s. >> our children need immediate action. immediate action is action today. almost half of this country's population will be sweltering in a dangerous heat wave today. hot air and high humidity will make big cities along the i-95 corridor feel like a sauna. the national weather service says the heat wave may have contributed to 22 deaths already. and london police are expanding their investigation into the phone hacking scandal. an official says it now involves newspapers beyond rupert murdoch's media empire including "the daily mail" and "daily mirror." the police task force has added 15 investigators, bringing the total working on the hacking scandal to 60. nfl owners are meeting in atlanta today to vote on a tentative labor deal with players. the reported ten-year deal, if finalized, would divvy up the league's $9 billion in annual revenue. players were supposed to vote yesterday but never did, suggesting there's still a few details to work out. nfl fans say, enough already. >> 10% unemployment in the country, right? us poor folks scrap and scraping to get by. come on. it's billionaires against millionaires, right? can you not meet in the middle somewhere? here's your chance to talk back on one of the big stories of the day. carol costello in washington with today's question, should politicians participate in religious events? >> that's a good question. the country, fredricka, is drowning in debt. jobs are m.i.a. lawmakers are too paralyzed by partisanship to help much. so why not pray? at a stadium in houston next month, texas governor rick perry plans to lead a day of prayer at an event dubbed "the response." >> with the economy in trouble, communities in crisis and people adrift in a sea of moral relativism, we need god's help. that's why i'm calling on americans to pray and fast like jesus did. and as god called the israelites to do in the book of joel. >> now, the event is sponsored by the american family association. a conservative christian organization. and that's got some folks in texas mighty upset. they say a texas governor should not be involved in a religious revival because it blurs the separation between church and state. thing is, that line is blurred plenty. every year the president of the united states speaks at the national prayer breakfast in washington, d.c. and guess what? he talks religion. >> it was through that experience working with pastors and laypeople, trying to heal the wounds of hurting neighborhoods, that i came to know jesus christ for myself. and embrace him as my lord and savior. >> still, the event in texas has become the proverbial political hot potato. perry will likely be there next month, but organizers tell us his role has yet to be determined. so the talkback question today, should politicians participate in religious events? facebook.com/carolcnn. facebook.com/carolcnn. i'll read some of your comments later this hour. >> thanks so much, carol. look forward to that. all right. here's a rundown of some of the stories we're covering right now. first, it looks like the bipartisan gang of six debt ceiling deal may be in trouble. we'll look at why liberals and tea party conservatives won't buy into it. also, why getting food to starving somalis may require dealing with terrorists. then, an emotional celebration as space shuttle "atlantis" touches ground. and nfl owners meet today over a deal to end the lockout. late we shall they're calling her crouching wendi, hidden tiger. rupert murdoch's wife is the talk of social media in china. 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believe it or not, heat is the number one weather-related killer. hurricanes, flooding, those two big ones, are trumped by heat year after year. you know, in modern-day history, 1995 in chicago, we had several hundred deaths. in 2003 in europe, several thousand deaths. this is a serious business that we certainly want you to be aware of. that cool front is going to make slow progress and it's not a very strong one. it doesn't go very far to the south. so i think the south is really going to be in it as far as the heat goes for the next, well, not only several days but several week. i want to touch on one other thing. to get away from the heat, because it's just making me sweat just sitting here, look at that storm. hurricane dora. almost, almost a category 5 storm. it is just off the coast of mexico, but expected to stay off the coast and continue to go out to sea. nonetheless, try to get your mind off the heat, sometimes it's a psychological thing. stay hydrated and try to get in the shade when you can. >> you can't drink enough water, especially now. thanks, rob, appreciate that. all right. time is running out in the search for a deal to raise the country's debt limit. if there is no agreement in 12 days, the government risks defaulting on some of its bills. with the clock ticking, the chance of a broader deficit reduction plan appears less likely. so where do things stand right now? what are the stumbling blocks to this deal? joining us to talk about that is john avalon. he is a cnn contributor and senior political columnist for "newsweek" and "the daily beast." this plan from the so-called gang of six bipartisan senators seemed to be gaining traction. now, you know, lawmakers are starting to criticize it including reportedly ohioan republican representative jim jordan and representative and republican senator jeff sessions. so is there a chance that this deal really could succeed? >> of course there's still a chance. i think it's still the best deal that's put on the table. president obama has critically said that he would be willing to sign a short-term extension to the debt ceiling if it -- folks saying later on on this gang of six bipartisan deal. what's really discouraging and really the ultimate indictment of this atmosphere of high partisanship in washington is that a bipartisan deal, because it is embraced by president obama, is securing the broad outlines he supports, is being criticized by some republicans as, transfer, being impers missable. "the wall street journal" saying it would be the most important reform to the tax code since the 1980s and congratulates democrats on board for embracing not only the tax rate but entitlement reforl form. this is a critical moment right now. >> john, what does that mean that the president would throw his support behind this plan and that suddenly there are some who say, well, i don't even want to support this plan because i don't like the fact that the president has thrown some support behind it? what does that mean? >> sit's a complete indictment f the hyperpartisanship in washington, d.c. these folks are trying to play political games. we've got an objective deadline approaching. it's not a stand for fiscal responsibility if you refuse to pay a bill after you already spent the money. all you do is end up getting interest rates jacked which puts you further in the financial hole. that's where we are as a nation right now. we can solve this problem. we should be able to solve this problem. it's going to take everybody giving a little bit. that's why a bipartisan deal, ambitious bipartisan deal like the gang of six deserves serious support. instead, everything gets derailed by the hyperpartisanship and the country suffers. there'll be real political consequences as well as economic consequences if we go over this cliff. >> does it say more about sort of the splintering of even the republican party with the tea party movement, that there is this commitment from tea party followers who say that, you know, whatever the president puts on the table, we're going to oppose that and, thereby, it kind of creates this divide within the republican party for those who do want to go forward with a bipartisan plan? >> look, to be fair, there's 70 democrats in the house who oppose any entitlement reform which would have to be part of any grand bargain. you're right to the extend there's a hard core group of folks in the republican house in particular approaching negotiations with an all or nothing mindset. party members were elected by saying in large part themted to reduce the deficit and debt which they believed was generational theft. question is, is that your first priority or drawing an absolute line on taxes? if you take a look at the gang of six plan you should be thrilled if tax is your priority because rates would be lower and cuts would be made first and not after. it really becomes a question of priorities. if republicans want to relink fiscal conservatism with fiscal responsibility they will be able to work with this president and deal with this deal because it does much of what they want. all or nothing is never on the menu. of course, the devil is always in the details. that's not news. >> cnn contributor john avalon, thanks so much for your insight. appreciate that. >> thank you. wall street prepares just in case there is no deal to raise the debt ceiling. find out what companies are doing and how it just might affect you. hi, we're looking to save some money on our car insurance. great! at progressive, you can compare rates side by side, so you get the same coverage, often for less. wow! that is huge! [ disco playing ] and this is to remind you that you could save hundreds! yeah, that'll certainly stick with me. we'll take it. go, big money! i mean, go. it's your break, honey. same coverage, more savings. now, that's progressive. call or click today. the deadlock over raising the nation's debt limit is making wall street a bit jittery. now financial players are coming up with contingency plans just in case there is no deal and the government really does default on its debts. alison kosik is at the new york stock exchange with details on this. alison, what kinds of steps are these companies taking? >> well, financial companies, fredricka, they're keeping an eye on the bond market. they're watching the bond market very closely. they're preparing for a loss of confidence. treasuries are a type of investment. they're u.s. bonds. they're a gold standard. they're aaa rated. they come with low risk. it's always been a sure bet you're going to get your investment back and get paid interest. but if the government defaults, investors could head for the door and interest rates could soar. so companies, they're preparing by trying to calm nerves ahead of time. for one, you look at mutual funds. talking about retirement funds and pensions. they're working to persuade their boards to hold on to bonds, thinking everything is going to be worked through. that's what they're telling them. they believe a default at this point is unlikely. they still think the government debt -- that government debt is a good investment. now, we've also got the ratings agencies in this. they're trying to figure out who could be affected by a default. so they can prepare as well. so they're looking at insurance companies and states. they're looking at this ripple effect. analysts are saying it's really hard to prepare for the unknown. >> what about those states, then? are states putting some measures into place to try to prepare just in case the government can't pay its bills towards them? >> well, they're coming up with a plan "b" as well. they're finding other ways to get cash. you know, like the federal government. the issue here for states is the bond market. because states sell bonds to raise cash but there may not be much demand if the federal government defaults. now, california is coming up with its own contingency plan. it's looking to have a $5 billion bridge loan so it will have cash on hand. and when things turn around, california plans to sell bonds to repay the loan kind of like borrowing from peter to pay paul, fredricka. >> at least we're enjoying a little bump in the numbers. the markets right now. what is happening? >> yeah, european leaders look like they're making good progress on a greek bailout. the markets seem to like it a lot. dow up 145. nasdaq better by 26. financial shares are really leading the charge. 29 of the 30 dow components are in the green. that even includes cisco systems, top performer up about 2%. a good day for the markets overall, fredricka. >> very good. thanks so much. three great stories. only one can air. here's your chance to vote for the story you want to see next hour. first, you watched the revolution. but have you seen the movie? a new film dramatizes the events of the egyptian uprising. second, they're training to be the first female pilots in the afghan army and they're getting their wings right here in the united states. or, third, a painter's passion for rescued pit bulls becomes high art in st. louis and saves animals in the process. you can vote by texting 22360. text "1" for egyptian revolution the movie. "2" for first female pilots in afghanistan or "3" for pit bull painter. the winning story airs next hour. are they ready for some football? that's the question right now as nfl owners meet in atlanta to try to end a four-month lockout. a key vote could break the stalemate. our david mattingly is on the story. >> reporter: who gets how much of $9 billion in annual revenue? the numbers are so big, nfl fans in a tough economy had a tough time keeping score. >> 10% unemployment in the country, right? us poor folks scrapping and scraping to get by. come on. it's billionaires against millionaires, right? can you not meet in the middle somewhere? >> reporter: in march, with owners and players reportedly $800 million apart, the owners voted for lockout. even the president had something to say about it. >> my working assumption at a time when people are having to cut back, compromise and worry about making the mortgage and, you know, paying for their kids' college education is that the two parties should be able to work it out. >> reporter: the owners came to the table with three main demand. give players a smaller percentage of annual revenues, play more regular season games, 18 up from 16, and no more top dollar contracts to unproven rookies. but four months later, word from inside the closed-door meetings was close, but no deal yet. already the first economic fallout, some towns are losing millions because of training camps that won't be opening. and pressure builds by the day. >> we want to play football. we want to go back to work. but we're not going to agree to any deal unless it's the right deal for all the players. >> all right. cnn's david mattingly joins us now from downtown atlanta where the meeting is taking place. so any indicators that they're close to a deal? >> reporter: all we can say right now, fredricka, is that there is a lot of hope here. when the owners and some of the top executives of the 32 nfl teams gathered here, they started their meeting at 10:00. they had hope that the nfl players would vote on their agreement and they would have that in front of them here so they could vote as well. they are ready to vote. they are ready to move forward with this. but the players did not go through with that last night and now they're waiting

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