fold the slices in half. a real treat. >> thanks for coming by. >> i can't tell you how much it meant to be here with him and see this community and just appreciate it for what it is. >> reporter: the tour ends with a walk around the old neighborhood. >> i was born in this building in 19 is 311. >> reporter: and a stroll through arthur avenue market where they sampled aged parmesan cheese and get a treat of a lifetime. >> can you imagine being in the arthur avenue market and getting that? >> that's a slice of every day life. you say this is free, but how many people can get in on this? >> it's kind of luck of the draw and these women from south carolina got lucky. >> they sure did.

what a fun day. well, that's going to do it for us, great having you here. >> great being here. >> hope to see you back here tomorrow, for now the news continues with heidi collins. health care reform, new week, new challenges, and new doubts. and do you know who or what to believe? we'll show you how the facts are twisted on both sides of the issue. then power struggle, wicked storms move in, the lights go out. good morning, everybody, i'm heidi collins, today is monday, july 27th, and you are in the "cnn newsroom." in fact, we have our crews in place this morning to bring you all kinds of developing stories. right out of the gate this morning, suzanne malveaux is looking at the latest health care strategy that's really ratcheting up in washington now. and also our christine romans looking after your money. she's going to explain to us why we should understand how china is keeping a very close eye on the american economy and also why you should care. and our cal perry as you see him there, he is in beirut. he's going to be telling us

about the new push for peace in the middle east. and about the iran factor. we do begin this morning with health care reform. president obama's top domestic priority is facing two obstacles this morning. time and math. members of both parties now say an overhaul cannot pass without some republicans getting on board. but a far different message coming from the speaker of the house. nancy pelosi insists she has the votes to plow ahead. >> it's not a question of rush. it's a question of the american people who have been waiting a very long time. for health insurance that gives them confidence that they had a preexisting condition or if they lose their job or change their job or start a business that they will have health insurance. >> i take this bill to the floor, it will win. but we will move forward, this will happen. >> let's get the very latest now from suzanne malveaux. so suzanne, the senate is going to be missing the president's deadline for a vote on health

care reform. is anyone still listening to the president? >> well, they certainly hope that somebody's listening to the president. what a top white house aide told me this morning who i spoke with said what they're trying to do now is reassure the american people, make sure they know he's a credible player, a viable player in all of this despite the fact he didn't get the deadline he was looking for, that he has still, the political capital to try to push this thing through. one of his top aides over the weekend describing that august is is going to be a very busy month and that he's still very much going to be a player. take a listen. >> we're less interested in hard deadlines than moving the process forward. they've had a disciplining effect. 3 of the 5 committees of the jurisdiction in the congress have passed bills, the other two were working hard on, and we want to move this process forward, even if both the house and the senate have voted on these bills before the break. this would still go well into the fall.

>> and heidi, i've been told that the president was going to work very hard, including this week, hooe going to get out travel in the country, push for it. one of the things they're talking about, look, we've got 80% of this or so in agreement, it's the other 20% that we just haven't quite worked out, that is really the tough part of this, heidi, that other 20% a big hurdle because not just the republicans, but also the democrats very much split on how to handle this and what to do. and here's how one of the top republicans in negotiations put it. >> the house bill and the senate health committee bill, they pay for it by cutting doctors, cutting hospitals, and raising taxes on small business. those are very difficult pay fors, and they're having a hard time selling it to their own members. the only thing bipartisan about the measures so far is the opposition to them. >> heidi, there is one measure that is creating some bipartisan support, and that is one called the so-called cadillac tax or it

would be a tax on health insurance companies, they're really costly plans that they supply to some high-powered executives. that is something that republicans, democrats, and the white house all seem to be a bit open to. they have some more time to work on this, to look it over, so that's one of the things that's emerging, heidi. >> you are all over that story, of course, this morning. and then this, the president's going o be taking a break from health care reform and talking about china, which is a huge issue. can you kind of headline it for us? >> sure. it is called the u.s. china strategic and economic dialogue, it's a big meeting, big conference that happens the next couple of days. president obama's going to be highlighting it this morning, and essentially, it's somewhat of a departure from the bush administration, prurv focusing on the economic relationship between the two countries. president obama when he first met with the president of china said i want to expand, so they're going to be talking about security issues, north

korea, which they feel china's been very good in pushing north korea and some other things. and so it's beyond the economic priorities, it's really establishing a broad wide range between these two countries, heidi. >> yes, we want china continue liking america, certainly. and just for everybody's sake, we were looking at pictures of secretary hillary clinton moments ago. these are live pictures coming to us from the ronald reagan building and we also have secretary of treasury who is there and, of course, the president of china and the state counselor, as well. we'll be keeping our eye on that. and a reminder, stay with us for the president's remarks because they are scheduled for the bottom of the hour, and of course, we will carry them live, once again, 9:30 eastern time. now the u.s. and china have an uneasy alliance of sorts when it comes to the economy. china has gobbled up staggering amounts of u.s. debt. and now washington needs to

assure beijing that the investment is safe. here with us christine romans of the cnn money team. christine, the financial crisis that has strained economic relations between these two countries, where do things stand right now? >> well, it has strained things. for years the united states and our leaders have been telling them they need to be more like us, get their government out of their economy and embrace free markets, capitalism. now because of the financial crisis, which many say has been started by our big banks and the big multinational taking risks and not having good enough regulation, the chinese can turn around and say you need to be more like us. you have the situation for years we were talking about the sch i chinese and their currency, and now saying what about your currency? we own a lot of your debt. we need to know you're going to take care of our investments. this bigger dialogue that suzanne mentioned, it's important because you can't separate. you cannot separate economics out of all of the big foreign policy issues. they're going to talk about the economic recovery, what we're

doing together to get there, climate change, energy, and environment, north korea, afghanistan, pakistan, and also as the secretary -- geithner and clinton and in an op ed, this is all on the agenda for the next couple of days, heidi. >> i hope they have enough time to cover all of that. explain, though, to people why we have to worry about china's unease with the u.s. dollar and the value of it. >> well, because look, the chinese -- we spend more money every day than we have. and we borrow that money from china, and when we buy that money from china, then we buy chinese-made goods and the money circles around and the the chinese get the dollars and invest into treasury bonds. they are our banker. they are a big, big banker, i think our biggest foreign lender. so china is our banker and they want to make sure that what we're doing isn't going to hurt their investments and them. also the chinese officials lately have been making more and more noise about diversifying in the global economy away from the

dollar being the big huge global reserve currency and maybe looking at a basket of currencies or maybe even doing more international transactions in the chinese currency. and you know, that's a big deal because just about anything of value of gold, oil, exports, anything you can think of is denominated in the dollar. that is showing you that there's a new big powerful player on the global stage and that powerful player is china. >> well, christine romans, we appreciate it very much. lots more topics to discuss on this front. we will talk with you again shortly. meanwhile the man overseeing the crisis says there's a silver lining. ben bernanke says americans are now developing better money habits. increased savings and racking up less debt. he says those factors and tighter federal regulations will eventually make the economy stronger and less likely to face a similar crisis in the future. bernanke's comments came during a town hall meeting in kansas city, missouri. so, we want to know, have you changed your spending and

saving habits because of the recession? it's our blog question today. and post your comments at cnn.com/heidi, or give me a call. the hot line to heidi number is 877-742-5760. we'll put the comments on the air later in the show. we are also keeping a close eye on the middle east where tensions are rising over iran's nuclear ambitions. israel suggesting it won't rule out a military strike. israel's defense minister said today his country is taking no option off the table. remark comes amid strong overtures from washington, as well. hillary clinton has implicitly urged israel to set aside thoughts of a preemptive strike and give u.s. policy time to work. -- of a possible defense umbrella in the region. she says it could help protect allies against iran's nuclear program. >> what we want to do is to send a message to whoever is making

these decisions. that if you're pursuing nuclear weapons for the purpose of intimidating of projecting your power, we're not going to let that happen. first, we're going to do everything we can to prevent you from ever getting a nuclear weapon, but your pursuit is futile. >> and meanwhile washington has dispatched a group of high profile envoys to israel. their focus, pressuring israel to halt the settlement in the west bank and east jerusalem. that's land they want for a future state and a major obstacle in possible talks. the latest on this from beirut, lebanon. talk to us about any progress that might be being made so far. >> reporter: well, i think it's one step forward, one step back as usual when it comes to the middle east peace process. and what we're seeing here is is the first full court press from the obama administration on the middle east after a number of speeches where he said he's going to reach out to the middle

east, we're going to see that happen this weekend. george mitchell, visiting damascus before traveling to israel and those meetings seemingly a huge success. we heard george mitchell say things we haven't heard the administration say for over eight years, he talked about the people and the need for cooperation between the united states and syria, a far cry from the bush administration. we spoke to senior syrian officials yesterday on the phone. they said the same thing, said they were impressed by mitchell, he carried a genuine message from obama and the conversation went toward a future meeting, potentially between hillary clinton and the president of syria and president obama. now after those meetings this weekend in syria, mitchell flew on to israel and that's where the honeymoon seemed to quickly end. he was immediately faced with the iranian issue. israel has always said that iran is the biggest threat to israel if not the world. flanking george mitchell as the

u.s. defense secretary robert gates seemed to only reenforce what the israelis had to say about the program. take a listen to what he had to say. >> there's no question that as minister barack said a nuclear-armed iran would be profoundly destabilizing to the entire region. and a threat to certainly to israel and a threat to the united states -- >> reporter: now, heidi, i think ironically we're seeing for the first time really a relationship between the u.s. and syria going well. and the u.s. walking a fine diplomatic line with a country that has been a staunch ally for 60 years, that being israel. and all you have to do is look at the way george mitchell has traveled around this region from syria to israel and then at very sort of strange scheduling change. he then flew on to egypt. he was supposed to do that tomorrow. he did that today. he's back in israel very

quickly. as you can see, he's just on a whirlwind trip as the u.s. tries to move syria away from iran and at the same time walking a very fine line with their long time ally, israel. heidi? >> that's it if you can back up for a moment. i'd love to know why he started in syria, meaning george mitchell. and syria's always had this cloud of suspicion over them about where their moneys are going and possible funding of terrorist activities. so is that gone now? >> reporter: i don't think it's gone at all. and when you talk to u.s. military commanders on the ground, for example, in iraq even, now they'll still tell you in these high-level briefings that they're very concerned about the flow of weapons and fighters across the syrian border. but i think there was a clear message on mitchell going to syria first before going to israel, the u.s. is sending a message that syria really is key to middle east peace and you look at it and you can tell why. the hamas leadership which still runs gaza resides in damascus,

so access can be found through the syrian leadership and of course, as i mentioned that border with iraq, that is key for the united states. obama wants to ramp down military activity in iraq, he wants to ramp it up in afghanistan, the only way he's going to be able to do that if that border's secured, heidi. >> understood. thanks is so much, live from beirut, lebanon this morning. three cars, one going the wrong way. ending in a horrific crash. police are now looking for answers. i'm rob marciano, cnn severe weather center, humidity building for more typical summer time weather pattern. but really heating up in pacific northwest. "cnn newsroom" with heidi collins is coming right back. ce. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long.

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a car crash on a suburban parkway outside of new york city kills eight people, including four children. police say the minivan was heading the wrong way on the parkway yesterday when it crashed into an suv. it also hit a third car and then burst into flames. the woman driving the minivan and four of the five children inside it were killed. only one child survived.

>> it was a horrific scene altogether. i've never seen anything like this. -- at the scene and hopefully we'll be able to come to some determination why this person entered going the wrong way. >> the three people in the suv were also killed. police say it was the second wrong way crash on the parkway that day. rob marciano joining us now. nice to see you again. i didn't know we were on together before, sorry about that. >> it was a sneak attack. hope you had a great weekend, heidi. >> yeah. >> hello, everybody. typical summer weather shaping finally across the eastern part of the country. you get humidity that's starting to build up in the eastern sea board. this section, warm and humid conditions with thunderstorms popping up, especially in the afternoon, this front's kind of stalling out right along the -- right along i-95 and a threat for seeing severe weather across parts of the upper midwest and the western great lakes, that's where, i think, we'll see the

most intense thunderstorms later on today. a couple of thunderstorms that were severe yesterday and last night now moving offshore. so that's not so much of a problem for the folks in the northeast. later on today, you'll see things bubble up. west texas, north texas, dallas, you'll start to see action towards denton, look like thunderstorms there. wfaa, thanks for that shot, temperatures right now in the mid-70s, and obviously clouds around, storms are surrounding you, about a 70% to 80% chance of seeing action today, so be aware of that if you live in the metro plex, bring the umbrella or rain gear. dry out across the pacific northwest, temperatures starting to build into the 90s, maybe up and over 100 degrees in places like portland, eugene, salem. it's just really, really hot, high pressure in control, and humidity's not all that low for this part of the map.

it's pretty sticky out there, a lot of folks in the northwest don't have the air-conditioning. might be sweating here the next couple of days. >> we'll keep our eye on that and check back in with you later on. making a comeback to raise awareness about cancer. cycling strong man rides again. our dr. sanjay gupta is at the finish line with lance armstrong at the tour de, france. y airway. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe bs not e. hmehetealter all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid.

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lance armstrong didn't win this year at the tour de france, but the seven-time winner showed the world he's still got it. he came in third, impressive considering he was making a comeback after nearly four years in retirement to raise cancer awareness. cnn's sanjay gupta talked with armstrong in paris right after the finish. >> to tell you it's been a remarkable 22 days for lancearm strong right here in france, tour de france ended right here in paris. fans, cancer survivors all over the world cheering on the seven-time winner. i sit on the board, and i can tell you after a four-year

hiatus, that was a big decision for him. i caught up with him a few hours after he took third place. at the tour de france to talk about the challenges and criticisms that have been waged against him and how he responds to those and ask him why he decided to get involved in all of this again. >> coming in first, is that something that you thought about? did you care? >> you're right it's not about the bike, but do you care about if you come in first or not? >> well, i wanted to come in first. but sometimes in sports there's somebody that's better. and i was that guy for seven years. and i never understood what it felt like to get second or third. i'm 38 now and you race guys that are 24, 25, or 26, and their paths are strong, they have acceleration, they have all of the things that you had at that age. and you get third. that's what's the great thing about the tour that the best man

always wins. >> how was this race different for you in terms of how you trained, what you ate, was it different compared to five years ago? >> well, i used a lot of the same training, the same idea with diets. the only difference, i guess, is that i'm now 38 years old. so a 38-year-old man does not wake up every day like a 28-year-old. but i can't complain, i mean, i think i rode well. >> why come back after four years? what inspired that? >> obviously, i have to have a love for the bike, a love for the tour, otherwise it's too hard, it's way too damn hard to go out and do this. but my passion for fighting cancer and fighting and not just in texas or the united states, but around the world. when you look at you the man, lance, and the issue of cancer, do you think people separate that? do you think they understand why you're riding and came back? >> yeah, i think so. these days it's easy to get

feedback. when people have a comment or have an issue, they let you know. and most of them are regarding cancer. so that tells me that the people understand. they've been effected, their loved one. and they understand it, and they say keep going, pedal hard for them tomorrow, pedal hard for my mom or my neighbor or co-worker. >> you talked about during was the surprise test. they just come surprise you. >> they're not surprises any more. >> i think over 40 tests. >> i think over 50 now. >> what do you say to the critics and skeptics now? end of the tour? >> look, i've done this a long time and i've been at the highest level now since 1992 until 2009, i've been tested more than anybody else. if i can take four years off and come back at the age of 38 with more control than anybody else on planet earth and get third in the hardest sporting event in

the world, i think we've answered the questions. >> couple of things worth pointing out, lance's heart and lungs are different than most people. he pumps about 9 gallons per minute as compared to 5 gallons for a normal healthy 20-year-old. also with every breath he takes, he gets about twice as much oxygen as normal, as well. which could be advantageous. i asked lance what was next, he's going to dublin at the end of august to continue those discussions on some of the issues he talked with me about today. back to you. >> thanks for that. also, out of the hospital, but not back to work just yet. for french president sarkozy, he collapsed while jogging over the weekend. doctors say his heart and everything else checks out okay. they blame it on heat and too much work. the prescription, a few days of rest. sarkozy canceled all of his official business for the day.

on wall street, two weeks of gains has sent both the dow and s&p 500 up more than 10%. but this is the busiest week yet for earnings. and there's a full plate of economic reports to go with them. susan lisovicz at the new york stock exchange now to break it down for us. hi there, susan. >> good morning, heidi. what a summer scorcher we've had. you mentioned the dow and s&p 500, also the nasdaq, 12 back to back rallies, so we'll see what this week has to bring. you mentioned it's a busy week for earnings, nearly 150 companies in the s&p 500 are reporting this week. the market's two-week rally on the back of largely better than expected numbers, but there are disappointments today and stocks are set for a flat open. honeywell's quarterly profit dropped nearly 40% due to problems in the auto and construction sectors, and

honeywell says it doesn't expect an economic recovery this year. health insurer says earnings fell nearly 30%, and as the opening bell rings, that company cut its profit forecast for the second time in two months. and dow component verizon says quarterly profits fell more than 20%, the nation's largest wireless company has been working hard to cut costs, but it can't do it fast enough to keep pace with falling revenue. ben bernanke says there's a silver lining to this recession, people are adopting good habits like saving more. speaking at a town hall forum in kansas city for pbs, the chairman of the federal reserve says the recovery will be gradual, but economic activity will pick up this year. the fed chief has been increasingly taking his message to the people. earlier this year, he did a lengthy interview with 60 minutes and last week wrote an op ed piece in the "wall street journal." not seeing any improvement in the first few seconds of trading. the dow, nasdaq, s&p, showing a

little bit of resistance. in half an hour, we'll get the latest read on the housing market. expecting new home sales to rise more than 2%. and we'll be following it closely. back to you. >> that's always an interesting number to get. thanks so much. we'll check back later on. republicans are digging in their heels on health care reform and some democrats are dragging theirs with president obama's deadline fast approaching. what's the next move for the white house? long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways.

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breall day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. happening right now in washington, high-level talks between the u.s. and china. we expect to hear from president obama any minute now. you're looking at some live pictures coming to us. this is the chinese state counselor, actually. this is the first u.s.-china strategic and economic dialogue. the biggest issues between the two countries, major differences on trade and the growing u.s. budget deficit. secretary of state hillary clinton and treasury secretary timothy geithner are also there at the meeting.

now, as far as my schedule that i'm looking at that we do expect that president barack obama will be the next speaker. as i'm told we were listening in a little bit there to the chinese state counselor. so, we will keep our eye on this for you and just as soon as the president comes to those microphones, which may be any second, we, of course, will bring that to you. i was listening just a moment to the state counselor who was talking about how important the relations between these two countries, the united states and china are, discussing how large their economies are and how large -- >> ladies and gentlemen, the president of the united states -- >> obviously, that is one of the major issues in continuing a relationship, especially considering the amount of treasury bonds that this country owns in american dollars. so we will go ahead and listen in to president barack obama now. once again, at the u.s.-china strategic and economic dialogue meeting coming our way from the ronald reagan building right there in washington.

>> thank you. thank you. good morning. it is a great honor to welcome you to the first meeting of the strategic economic dialogue between the united states and china. this is an essential step in advancing a positive, constructive, and comprehensive relationship between our countries. i'm pleased that the president shares my commitment to a sustained dialogue to enhance our shared interests. the president and i both felt that it was important to get our relationship off to a good start. of course, as a new president and also as a basketball fan, i have learned from the words of yao ming who said no matter whether you are new or an old team member, you need time to

adjust to one another. well, through the constructive meetings we've already had and through this dialogue, i'm confident that we will meet yao's standard. i want to acknowledge the remarkable american and chinese leaders who will co-chair this effort. hillary clinton and tim geithner are two of my closest advisers, and they have both obtained extraordinary experience of working with china. and i know that they will have extremely capable and committed chinese counterparts in state counselor di. thank you very much for being here. i'm also looking forward to the confirmation of an outstanding u.s. ambassador to china. governor john huntsman, who is here today. john has deep experience living and working in asia, and unlike

me, he speaks fluent mandarin chinese. he also happens to be a republican who co-chaired senator mccain's campaign. and i think that demonstrates john's commitment to serving his country and the broad bipartisan support for positive and productive relations between the united states and china. so thank you, john, for your willingness to serve. today, we meet in a building that speaks to the history of the last century. it houses a national memorial to president woodrow willson, a man who held office when the country was so young and the leadership was emerging. it is named for ronald reagan, a man who came of age during two world wars, and whose presidency helped usher in a new era of history. and it holds a piece of the berlin wall, a decade's long symbol of division that was finally torn down, unleashing a rising tide of globalization

that continues to shape our world. 100 years ago, in the early days of the 20th century, it was clear that there were momentous choices to be made. choices about the borders of nations and the rights of human beings. but in woodrow wilson's day, no one could've foreseen the ark of history, nor could they imagine the conflict and upheaval that characterized the years in between. from people everywhere, from boston to beijing, the 20th century was a time of great progress, but that progress also came with a great price. today we look out on the horizon of a new century, and as we launch this dialogue, it's important for us to reflect upon the questions that will shape the 21st century. will growth be stalled by events like our current financial crisis? or will we corporate to create

balanced and sustainable growth, lifting more people out of poverty and creating a broader prosperity around the world? will the need for energy breed competition and climate change, or will we build partnerships to produce clean power and to protect our planet. well, nuclear weapons spread unchecked, or will we forge a new consensus to use this power for only peaceful purposes. will extremists be able to stir conflict and division? or will we unite on behalf of our shared security? well, nations and peoples define themselves solely by their differences? or can we find common ground necessary to meet our common challenges and to respect the dignity of every human being. we can't predict with certainty what the future will bring. but we can be certain about the issues that will define our times. and we also know this, the relationship between the united

states and china will shape the 21st century, which makes it as important as any bilateral relationship in the world. that really must underpin our partnership, that is the responsibility that together we bear. as we look to the future, we can learn from our past, for history shows us that both our nations benefit from engagement is grounded in mutual interest and mutual respect. during my time in office, we will mark the 40th anniversary of president nixon's trip to china. at that time, the world was much different than it is today. america had fought three wars in east asia in just 30 years. and the cold war was in a stalemate, china's economy was cut off from the world and a huge percentage of the chinese people live in extreme poverty. back then our dialogue was guided by a narrow focus on our shared rivalry with the soviet

union. today, we have a comprehensive relationship that reflects the deepening ties among our people. our countries have now shared relations for longer than we were estranged. and i believe we are poised to make steady progress on some of the most important issues of our times. my confidence rooted in the fact that the united states and china share mutual interests. if we advance those interests through cooperation, our people will benefit and the world will be better off. because our ability to partner with each other is a prerequisite for progress of many of the most pressing global challenges. let me name some of those challenges. first, we can cooperate to advance our mutual interests in a lasting economic recovery. the current crisis has made it clear that the choices made within our borders reverberate across the global economy. and this is true not just in new

york and seattle, but in shanghai, as well. that is why we must remain committed to strong bilateral and multilateral coordination. and that is the example we have set by acting aggressively to restore growth, to prevent a deeper recession, and to save jobs for our people. going forward, we can deepen this cooperation. we can promote financial stability through greater transparency and regulatory reform. we can pursue trade that is free and fair and seek to conclude an ambitious and balanced agreement. we can update international institutions so the growing economies like china play a greater role that matches their greater responsibility. and as americans save more and chinese are able to spend more, we can put growth on a more sustainable foundation. because just as china has benefitted from substantial investment and profitable

exports, china canq, enormous market for american goods. second, we can cooperate to advance our mutual interests in a clean, secure, and prosperous energy future. the united states and china are the two largest consumers of energy in the world. we are also the two largest emitters of greenhouse gases in the world. let's be frank. neither of us profits from a growing dependence on foreign oil, nor can we spare our people from the ravages of climate change unless we cooperate. common sense calls upon us to act in concert. both of our countries are taking steps to transform our energy economies. together, we can chart a low carbon recovery, we can expand joint efforts and research and development, to promote the clean and efficient use of energy, and we can work together to forge a global response of

the climate change conference of cope haguen and beyond. and to increase our security and prosperity, is to keep our markets open to new ideas, new exchanges, and new sources of energy. third, we can cooperate to advance our mutual interests in stopping the spread of nuclear weapons. make no mistake, the more nations acquire these weapons, the more likely it is that they will be used. neither america nor china has an interest in a terrorist acquiring -- or nuclear arms race breaking out in east asia. that is why we must continue our collaboration to achieve the new nuclearization of the korean peninsula and make it clear to north korea that the path to security and respect can be traveled if they meet their obligations. and that is is is why we must also be united in preventing iran from acquiring a nuclear weapon and urging the islamic

republic to living up to its international allegations. this is is not about singling out any one nation. it is about the responsibility of all nations. together we must cooperate to secure all vulnerable nuclear materials around the world, which will be a focus next year. and together, we must strengthen the nuclear non-proliferation treaty by renewing its basic bargain. countries with nuclear weapons will move towards disarmorment. a balance of terror cannot hold. in the 21st century, a strong and global regime is the only basis for security from the world's deadliest weapons. and fourth, we can cooperate to advance our mutual interests in confronting transnational threats. the most pressing dangers we face no longer come from competition among great powers,

they come from extremists who would murder innocents from traffickers and pirates who pursue their own profits at the expense of others, from diseases that know no borders, and wars that breed instability and terror. these are the threats of the 21st century, and that's why the pursuit of power must no longer be seen as a zero sum game. through increased ties between our militaries, we can diminish causes for dispute while providing a framework for cooperation. through continued intelligence sharing, we can disrupt terrorist plots and dismantle terrorist networks. through early warning and coordination, we can check the spread of disease. and through determined diplomacy, we must meet our responsibility to seek the peaceful resolution of conflict. and that can begin with the renewed portion to end the you

ever suffering in darfur. all of these issues are rooted in the fact that no one nation can meet the challenges of the 21st century on its own, nor effectively advance its interests in isolation. it is this fundamental truth that compels us to cooperate. i have no illusion that the united states and china will agree on every issue. nor choose to see the world in the same way. this was already noted by our previous speaker. but that only makes dialogue more important. so that we can know each other better and communicate our concerns with candor. for instance, the united states respects the progress that china has made by lifting hundreds of millions of people out of poverty. just as we respect china's ancient and remarkable culture, it's remarkable achievements, we also strongly believe that the

religion and culture of all peoples must be respected and protected, and that all people should be free to speak their minds. and that includes ethnic and religious minorities. in china as surely as it includes minorities within the united states. support for human rights and human dignity is ingrained in america. our nation is made up of immigrants from every part of the world. we have protected our unity and struggled to protect our union by extending basic rights to all our people. and those rights include the freedom to speak your mind, to worship your god, and choose your leaders. these are not things that we seek to impose, this is who we are. it guides our openness to one another and to the world. china has its own distinct story that shapes its own world view. and americans know the richness of china's history because it helped to shape the world and it helped to shape america. we know the talent of the

chinese people because they have helped to create this great country. my own cabinet contains two chinese americans. and we know that despite our differences, america is enriched through deeper ties with a country of 1.3 billion people that is at once ancient and dynamic. ties that can be forged through increased exchanges among our people and constructed bilateral relationships between our governments. that is how we will narrow our divisions. let us be honest, we know that some are weary of the future. some in china think that america will try to contain china's ambitio ambitions. some in america think that there is something to fear in a rising china. i take a different view. i believe in a future where china is a strong, prosperous, and successful member of the community of nations. a future when our nations are

partners out of necessity but also out of opportunity. its future is is not fixed, but a destination that can we pursud dialogue like the one that you will commence today and act on what we hear and what we learn. thousands of years ago, the great fill loss officer said, a trail through the mountains, if used, becomes a path and a short time. but if unused becomes blunt like grass and an equally short time. our task is a forth a time of future that we seek for our children that prevents mistrust from allowing that moment to be blocked by grass. always be mindful of the journey that we are undertaking together. this dialogue will help determine the ultimate destination of that journey and represent a commitment to shape

our young century through sustained coop operation and i look forward to carrying through this effort where i hope to know better your leaders and in the assembly of progress and meet our responsibility to the people. thank you very much. >> all right. president barack obama as you see there. president barack obama as you see there speaking at the u.s. china strategic and economic dialogue meeting. now complete, he had several things to say. mainly talking about the much interests of the two countries, china and the u.s. the lack of the economic recovery and clean and prosper louse energy future and confronting trans national threats, meaning extremists or

any type of disease that threatens china and the united states. there you have it. the secretary of the hill we're going to take a break. ps my air. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways.

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time now for a quick check of stories happening right now. firefighters are battling this raging five-alarm fire at a home furnishing store at bremerton near seattle. the fire chief says that no one was inside the building when the fire started. an american who joined al qaeda and then plotted to kill former president bush is due back in court today for

resentencing. he was convicted in a federal court back in virginia 2005. astronauts were wrapping up the space shuttle "endeavor." they will be rearranging power cables and connections. the "endeavor" is scheduled to leave the space station tomorrow. >> by now, david goldman's story is well known. in 2004, his wife took their son on vacation out of the u.s. and never came back. now the brazilian family raising the boy is sharing their side of the boy is sharing their side of the he better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways.

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the economy is issue number one for you and for us. wall street is turning and churning. new company reports and economic numbers. christine romans is tracking stimulus money. is your cash being spent wisely? and health care reform.

a new week, new challenges, and new doubts. in fact, we begin with health care reform. president obama's top domestic priority is facing two big priorities this morning. time and math. both parties cannot pass without some republicans getting on board. we'll hear more now from suzanne malveaux. you have to wonder what are they listening to from the president these days? >> you know, it's a very good question. what kind of role is it going to play? some of the people i spoke with this morning are saying, look, he's still a relevant player and they want to say despite he missed the deadline he still has political clout in all of this. he's going to be out front and center in the weeks and days to come. the bottom line here is they

want them to know -- they want democrats and republicans to know that he is still going to be very much engaged in the weeks to come on this debate. three of the five jurisdiction have passed a bill and the other two were working hard on it. we want to move this forward. even if both the house and the senate voted on this before the break, it would still go, as you know, well into the fall. >> one of the things here, david axelrod and robert gibbs, 80% say that they have an agreement. as we know, that's the tough part. the other 20 percent, we know republicans as well and democrats are very much prepared for it but republicans are

warning him do not necessarily expect that you're going to by the end of the year. take a listen. >> the house bill and the senate house committee bill pay for it by cutting doctors, cutting hospitals, and raising taxes on small business. those are very difficult, painful pay force and they are having a hard time selling it to their own members. the only thing bipartisan so far is the opposition to them. >> there is a by partisan measure that he tries to get and that's the idea that they are taking about are the companies on these high profile cadillac and they offer to top execs. that is one idea being bounced around. that's going to be passed on to the consumer but it's something

that seems to be gaining attraction right now. they have more time to mill it over and more time to fight it, heidi. we'll see how it goes. they are talking about how they work together. sus zan malvo, you're on top of it. we appreciate it so much. at any moment we expect to hear that new home sales have gone up. the housing market is indeed beginning to stabilize. we're also hearing more optimistic news about chairman bernanke. how you can save more and spend less. those factors and tighter regulations eventually make you stronger for the future. on wall street, nearly 150 companies will offer their polls of the economy.

they are releasing earning reports and investors are poised and ready. joining us now is susan lisovicz from the new york stock exchange. hi, susan. >> hi, heidi. we've seen the market turn around. why? the expectation was that new home sales rose 3.2% last month. guess what? it is what we are seeing. and that was revised higher to 2.4%. this comes on the back of last week's existing home sales. we sold a third straight monthly increase rate of course, also important, giving us an indication of whether there is in from and at what price people will buy. tomorrow we get another report on home prices. that will give us an indication of exactly where we are on that

end. the point s. the market is rallying just a little bit on the back of this news and that's really what we've had, heidi, over the last two weeks, a remarkable summer scorcher. the sense that corporate america is telling us things may be bottoming out or in some cases improving just a little bit so the market has taken off on that. the dow's two-week run since the beginning of the decade, the nasdaq rose nearly 12 consecutive sessions. this was way back when in 1992 and now we're getting information that the housing market, which i think many would argue which is where this crisis all began is showing signs of life. >> and that's encouraging: we were thinking it would go up by 2.2% or that was just last month? and it's 11% is now -- clear this up for me. >> okay.

we're going from month to month. that is how corporate earnings compare year after year. but this is month to month. so june, what we had is that new home sales rose and may would revise higher as well. i'm looking at the census -- the census -- excuse me. the commerce department light now. so backing up on this very encouraging report. >> i'm sorry. i'm a little slow. i want to make sure i got this right as far as new home sales go? >> that's right. these are estimates. as you know, sometimes they are way off. the revision is higher. you're seeing a trend in the housing market.

as well as builders doing anything off the lot. the fact is, there's activity. >> next time we talk to you, i would love to talk to you about credit. to me it seems like that's the next question, are people able to go out there and get the loans that they need in order to buy these new homes. >> it's a big issue. there's no question about t it's still not -- credit is not flowing. it's the taxpayer economic recovery package. 10% has been doled out now. you may have in fact -- and you probably won't, really like the answer. so, christine, do we know? first off, where is this stimulus money going?

>> first i can tell thaw $54.7 million has been paid out a170 billion -- and that means more than 10% right now and we can see by the website they paid about $18,000 per contract. the own stimulus project and one of the projects that is on the top list of all of the stores that unused train station in snerms and pult this train station back in work. right now it's an sore. they don't use the train station and critics say, look.

>> it's the grass land and apparently if you look for erosion heads have hurt some of the roads there. and this is signage and ipt rack tif kind of things for tourists. so this is putting my money to work at the grass plant $2.5 million for that. so there a couple of examples that critics of the plan say, come on, how much job is that going to create. i don't know if you meant to do this or not, but your friend -- >> i think they meant to do that. those things are and toited to each other. >> and there are people that will say that the train station is good use global health

research leaders, one of the projects in china, south africa, americans, scientists early in their career may have lost their funding because of the recession and now we will be able to continue their research on things like hiv, syphilis in shanghai, heart disease, health issues here in the united states all of these kinds of things. aand $780 billion, they are able to go to recovery.gov and report if you think there's fraud or waste or you know that there are shen nan begans. you can actually report it yourself to the government as well. >> what would they do? >> i don't know. that's a good question.

and people are trying to figure out how they can buy an awful lot of restrictions and cross the eyes and dot the gas prices are edging up now, according to triple a. the national average is at $2.50. that's an increase of less than a penny a gallon from yesterday. but it was nerl 15 cents a gallon than what we were paying month ago. keep that in mind. meanwhile, later this hour, a formal rm here is what you need to know if you want to cash in on that opportunity. the program offers up to $4500

for old gasparino guz zelg vehicles and steer row and there were a lot of restrictions so for more information go to the governments website for that, cars.gov. if you don't have health insurance you may be are the to wait >> last year at midnight we was 300. a. the line at the dmv has nothing on this free lynn click. also, rob will tell us how things are shaping up for the workweek. >> well, heidi, you're settling into a more thunderstorms that pop up. we'll discuss that.

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officials say that a man walked into a barbecue in east baltimore last night and started shooting. none of the injuries are life

threatening. detectives are working with witnesses to get the description of the shooter. in seattle, the military thought it had finally found a desserter. they threw him in jail for a week. they shipped him to fort knocks. the only problem is, he was never actually in the military. >> >> how the paperwork got mixed up and said that i was in there for two years before they finally figured out that i wasn't and started counting me as a desserter. >> parks says that he nearly joined when he was 18 but backed out. somehow his name stayed in the system. homeland security found him back on a trip to central america. eventually he got out but still wants a full explanation. >> 163 homes damaged in port orange florida.

take a look at these pictures. the tornado was a breeze merger. when winds come in and collide and start rotating. let's take a look at the damage that charlie crist will inspect the damage today. only one person has a minor injury. >> and then a sea breeze merger. >> nice work on a sea breeze merger. i have to admit, i was only listening to half of your thing there. but i'll look at the tape.

>> okay. >> i'll give you my feedback. more thunderstorms possible across parts of florida. actually, everything south of the stationery boundary will see human conditions and thunderstorm that will pop up in the afternoon. that's where we will potentially see severe thunderstorms there. in some cases, that is northwest of chicago. right now and through dallas, storms rolled and rotated through here. it's not just a disturbance that will shoally go off to the east. they are moving smoothly all right. portland is going to be hot. excessive heat warnings out for this part of the country. temperatures well into the 90s and into the 100 s.

if you don't have health insurance, take a number. the sight of this clinic, here is our affiliate wjhl, more people are asking for help than ever before. before dawn, hundreds of people wait for their number to be called. >> i got here at 9:00 last night and i'm 790. >> reporter: for many, camping out was necessary. by sun rise, tickets were gone. >> at midnight and 27, 28, 29. >> last year we were at 300. >> he was there for 12 years. >> i'm seeing a growth.

each clinic is becoming larger. >> without these clinics -- >> i wouldn't get what i needed -- >> be without. >> what would you not get. >> i wouldn't get my typical glasses. this weekend, about 1600 patients each day will be interviewed and 28 pairs of dentures will be fit and over 3,000 teeth will be taken out behind me. >> reporter: volunteers give their time and supplies. >> the dentures in my practice is about $2500. that's a pretty good sign and free work when you consider the rotating part of it, too. >> because people need it. >> >> people don't really have medical care. >> and so volunteers share what they can. >> when you're driving home from wherever it is, knowing that you turned down 1,000 pair of glasses and that's 1,000 people seeing sharper than they were earlier. >> stressed out and can't sleep

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a new study suggests that a chemical used in food tubing could cause problems in preemies. the nation's financial crisis may have robbed you of your finances and even robbed you of a job. millions of americans find that it's also taking a toll on their sleep. we get the details from poppy harlow. >> reporter: if a good night's sleep seems like a disstapt memory, blame the economy. over one-third of the population is losing sleep over the financial crisis or the economy. >> we're seeing a combination of people, people who have had

long-standing problems with their sleep and who report that their sleep is getting worse because of the added stress of the economy. >> prescriptions for sleep medications are at a record high topping 56 million in 2008 and up 54% since 2004. but if pill popping doesn't sound like the solution, consider a good, old-fashion power nap. >> you can nap after sleep loss after the fact or you can nap in anticipation of sleep loss because only sleep can replace sleep. >> and napping may be just a ticket. business is booming here where people will pay nearly $30 for a 40-minute nap. >> it's been a real interesting change in terms of consumer behavior. before september, a lot of people were coming here and saying, you know, i'd like to

get a nap and now people actually need their nap. it's become a real necessity in people's life. >> i just think it make as real difference, first of all, in my work. i do a much better job and that means i'm going to get a better bonus and i'm not going to burn out. >> two-thirds offed a dults think that sleep interferes with their concentration and makes handling the job more difficult. regular peers say that it's a small price to pay to overcome ex zaugs coming here and spending the money and taking a nap allows me to burn the candle at both ends. >> poppy harlow, cnn, new york. your home. obviously it's a huge investment. some encouraging news about the housing market. show you how the numbers may impact you.

>> the earnings report will offer a snapshot of the economy. a live report just ahead. the new york stock exchange, you can check out the numbers there. it's up to 9000 and that's a good thing. gerri willis has a key update on the housing numbers and a huge surprise. here is an article from the omaha. what warren buffett has to say. the commerce department just released june new home sales and first off, tell us the number again, because i'd like to hear it. 11%? >> yeah, new home sales for june up 11%. >> yeah. >> to 384,000. this comes as a big surprise to

wall street, which was expecting a tiny increase. 2.3% because there's a big increase over what we were ex peblging. this is the biggest increase in the monthly sales numbers in nine years. since december 2000. you should understand that the new home market is a small part of the existing home sales and it's really a much bigger barometer of how the market is doing. i want to show you the numbers to give you an idea of why people say it may have found the bottom and may be correcting right now. if you look at april, may, and june of this year, each of those months have experienced an increase of 4,890,000. you can look at the new home sales market. we're seeing some signs of an improvement. an individual market, vegas reported its hugest sales since

december 2006. that was a market that was really hard. you're seeing recovery all across these markets but a very low threshold and you have to understand that a lot of the sales are getting outs of the market. we have to put those types of things into it. >> right. exactly. there are some negatives here as well. we still haven't seen prices improve. in fact, prices are down 15% from a year ago. the median house price in this country, $181,000. and i have to also say that unemployment here is also bad news for the market. that's the old-fashion way that people will go into the market and not pay their mortgage. you should also understand that the federal tax credit prevents first-time home buyers, and that expires later this year.

the jolt going to the market will go away and surprising al jazeera, people really help the economy get going. tonight here is positive news for a change. >> we'll hold on for as long as we can. the chairman of the senate reserve is once again taking his case to the people now. ben bernanke says that the people will recover but there are very important lessons to learn. hi, susan. those are pretty strong words. >> pretty strong words and speaking very plainly, i guess he wasn't speaking to an

economist, that was ben bernanke speaking for pvs and says that there is actually a silver lining to this recession and that we, the american public, are saving more. of course, we've been the biggest consumer in the world and we saw what happened to our 401(k) and they became 201 ks and people are adopting good habits of not only will we be back on track but the economy will be stronger than it had been and not a surprise after two weeks of pretty strong gains, if you look in the housing second to, if you look at companies tied to the housing market, it's green arrows across the board. for instance, big home builder, shares are up 8.5%.

the dow is down a half a percent. that's on the back of the report just 30 minutes ago. >> yeah, wild. >> also, ben bernanke is saying we may have learned our lesson but did the fed learn their lesson and he said too big to fail. has to go. there are new laws and regulations that need to be put in place so that you ensure that the whole financial system.

>> all right. we're watching it all every day. we sure appreciate it. susan lisovicz, thank you. >> yes. >> more on buffett. america will recover from this recession. poppy harlow asked the legendary star about his thoughts of the economy. he's had good lessons in the economy ever since he was 6 years old. so little help from his family but he's done a lot since then. he told me one on one, have faith in the american economy with a look back at history, we always emerge stronger from a crisis. take a listen.

>> anybody has lived to regret it. we have a system that unleashes human potential and then continue to do so but you won't see that tomorrow or the next day necessarily. but i will guarantee that five years from now you and your kids and all of the people will be ultimately it's the spirit in him and not government stimulus that is going to get the economy back on track. that's what he said. we talk about history shows this and obviously if you tell them what to do, though, none of the government intervention as we talk about what is going on.

>> it's a great question and we ask the final question for my kids, listen, should americans have any confidence to hold that little savings that they might have out of the mattress and put them to work in the market and listen to what he told me. >> that's when tlings cheap. you know, they -- people were buying these same businesses a couple of years ago when the dow was 14,000 and the businesses have not gone away. >> he said be fearful when others are greedy. the goldman sachs investment and

paying off but he dumped in when every one else runs away. you can see that poll whenever you want at cnn.com. >> i'd like to see a little more of a stash or a discussion. >> a little bit more. >> poppy harlow, thank you. >> sure. >> we've been asking you all morning long what you think about this. have you actually changed your spending habits or your saving habits because of the recession? we have been getting a lot of responses. let's check out what you guys have been saying to us. the first person said, yes, as a single woman, i had takeout delivered at $20 per visit and that turned out to be over $200 in a month and 2400 in a year. i couldn't believe it. time to share flag. and then she says, i have not changed my spending habits i pay

cash and credit cards for all of the most major consumer goods and products and just a reminder, to send in your comments to cnn.com/heidi. meanwhile, a sad sight after a crew ship hits major trouble in northern waters. this problem was more of a moby dick than a titanic. to helreathe l da. ani's t a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. un kpsairwayreathe better all day looi p me betraly longd 'no. and it's not a steroid. announceit ky airwen...toelr d i's t a eroid. announceit keeps my airways. to help me breathe better all day long.

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summer thunderstorms is what we are talking about now. rob marciano, i guess it's across the eastern part of the

country, yeah? >> yeah. really rough weather and pop-up thunderstorms. there was humidity that built up across the northeast and with that, certainly seeing quite a bit of thunderstorm activity. and that's going to be the trend i think this week. typical summer time, we've been waiting a while for this to set in. this stationary boundary just sits there and then thunderstorm also develop in the afternoon. some will be more intense and widespread than others depending on what kind of energy it's depekt tekting out of the gulf. right now, the northern parts of texas is seeing rainfall as the eastern parts of nen brass ska and with that we see airport delays and just be aware of that. in the east coast, you saw showers and later on this afternoon, we start to see thunderstorms pop up. western great lakes, parts of milwaukee, madison, minneapolis,

thunderstorms could be on the severe side. here we go. this front kind of stops and it's typical this time of year. 88 degrees in dallas. it will be wet at times. the other big story is the heat building across the u.s. 91 at least that could hit the 100-degree mark. they don't usually get a lot of humidity and there is some humidity there. it will be a little steamy. >> rob, you may want to stick around for this next story. a crew dragging a massive passenger back with him. in fact, the dead 70-ton fin

wheal stuck to the boat. the ship probably hit the wheal in alaskan waters. nobody realized that it had been impaled until the crew docked. the crew doesn't know how it happened but they have strict rules about avoiding marine life. >> that's tough. >> they are the number one threat to troops in afghanistan. they provide explosive deviceses and how u.s. forces are getting around them and staying alive. n. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways.

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making their way across the border where is he hanging around and stirring up support, on friday, even put back in his own country, he was forced out by a military cue and he is criticizing the insurance for not doing more with their power. and then a cease fire in taliban struck in a tiny part of northern afghanistan. it deals with the province that was pushed goord in badghis. tie day karzai is saying that he will talk to the press and

calling for new rules for international protection and saying that he is tired of being treated unfairly. >> this has been indeed the deadliest month in afghanistan. they have seen the most intense fighting. ivan watson takes us offroading to show us how they deal with the biggest threats of their lives. marines blazing a trail in the desert and sometimes getting stuck in the sand. they are offroading to avoid ieds. >> it's the best way to go. there are not too many ways to go. we know it's the best place to catch us. >> over the course of the ieds that have killed coalition

forces. >> the second recon zans ba tal general, he tries to think like a taliban bomb maker. i'm curious about who they are after. they are smart as well. they try to take out key assets. >> this photo shows an ied on foot patrol earlier this month. two marines were killed in the blast. cheap, easy to make roadside bombs have taken their toll on american and nato forces. this has been the deadliest month yet of this eight-year war. >> like you hear a pop and then all of a sudden you hear -- the explosion and all you see is dust and your ears are ringing. your body, your adrenaline is rushing. body is so tense at the time. you like have no time like trying to kree act. you don't know what to do. >> corporal charles suffered an

ied strike against his armored vehicle on july 11th. the bomb killed two marines. >> i have flashbacks as to what happened a week ago. and all i can do is snap myself back to reality. >> the threat of bombs has forced coalition forces to rely more on helicopters to remove troops and supplies but the marines also have an arsenal for combatting this deadly bobby tracks. >> this is an example of a mechanical solution. and what you will see is the wheels here. they cover a path that is slightly wider than the track width of the vehicle and what it's intended to do is set off a pressure point line. >> sometimes all it takes to do a bomb -- >> he's doing this pattern and clearing both sides and we're

out corporal chuck marion and his 3-year-old labrador are part of a canine bomb hunting team. >> he's part of our saviour. >> you know, he saved our life. not to mention the rest of the marines. >> 78 of the ma marines killed were hit by roadside bombs. unlike iraq, afghanistan has few paved roads making it easier for bomb makers to plarnt their cnn, afghanistan. >> a messy custody case. a new jersey man fighting to get his son back to the u.s. and now only on cnn, we hear from the man on the other side of that

fight. one boy and two families. it was a case that was an international battle now the family is breaking their silence. >> at the age of 35, he had everything she dreamed of. living in brazil with her american-born sun, happily remarried, a baby on her way, her own business. it was almost too perfect.

>>. >> she was really, really grave to come here. she wanted her life back. >> but it came with a price. to be able to keep her son in brazil, work out custody with her first husband band in new jersey, goldman. >> nobody knows the exact moment that she decided to stay here in brazil, but it's at this point that the story takes sharply different turns. >> david went to court in new jersey but the court ruled that he be immediately brought home. goldman says that she warned him not to go to police threatening -- >> i would never see my son again. >> her mothers and brothers say not true. >> don't come, never see your

son -- >> >> he has come many, many times. >> and meanwhile in years past he was living in rio, learning portuguese, and making friends. and then tragically, last august, his mom died hours after giving birth to a daughter. again, shawn's life wa was about to change. he was ordered to be returned to goldman shawn's stepdad is making a legal claim for shawn to stay in brazil where he's lived half his life. >> i'm pleased with the decision today. >> why is the stepfather fighting for custody of another man's biological child. >> a man with no blood relation

to keep another parent's child is against their own law. >> so why is shawn, now 9, still in brazil. >> she always asks me to mom, if some day something will happen to me. please. the son from him, that you are going to stay away from him. >> his family still grieving her death is determined to move on. >> can you imagine, not only live in america but with someone that you don't know but is your biological father? you don't remember. just go. i mean, he doesn't want to go. >> it's so sad. i miss my daughter so much. >> the changing face of war