Transcripts For CNN CNN Newsroom 20120713

>> jamie dimon as i am told from a number of analysts as they exited the conference call, he was very apologetic. you have to admit, he has come out in front of the problem, addressed it, has taken responsibility for it. he asked that three people in charge of this chief investment office to resign. they're now claiming they're going to go after claw backs, means they can go up to two years of compensation for the individuals, and evidently the one in charge of the office offered to give ahead of them asking. and no severance pay and no compensation for 2012. so there is some fall back in terms of these individuals. we don't know how many other people may be involved. that's still to come. however, there's still about 30% of this trading operative that's out there, still to be unwound. we don't know if there will be more operating losses. one analyst expects there to be a gain, but as allison is about to tell you, no question, analysts and investors like what they heard this morning from jamie dimon. >> no more derivative spreading. let's go to wall street where investors decided to let by gones be by gones. you're watching it more. looks like stocks in general are on the rebound today. >> they are. a lot has to do with financial shares. financial shares boost up the dow. it is up 148 points. financials had been treading water, waiting to hear what jpmorgan chase had to say. jpmorgan had its day, investors liked what they say. shares up more than 4%. biggest gainer of 30 stocks traded on the dow industrial, so after hearing that jpmorgan fessed up to losing 5.8 billion, call it little consequences, there are wide ranging estimates going into today about how big this loss will be. and $5.8 billion is triple what was originally thought. and jamie dimon even said, you know what, losses can get bigger, much bigger, as the bank unwinds complex trades. the point is, wall street heard it direct from the source, and it is not just speculation now. dimon is being very open about this. he said, quote, this has shaken our company to the core, and he says traders involved in trading losses are no longer with the company. now, you want to know how it effects the bottom line, it is held in a lot of everyday investments. total dollar value of jpmorgan shares is more than $60 million. largest amounts in three van guard funds. even with a 16% slide in shares since the loss came out, since we learned about this loss may 10th, shares are up 4.5% for the year. while you may not be where you were may 9th before we got the news, you could still be making money on jpmorgan shares. >> not a bad thing. a lot of people don't realize they have chase in mutual funds. not a lot of people pay attention to what's exactly in there. >> they will now. >> they sure will. alison, they will. thanks so much. jpmorgan lost in market capitalization. of all the times live in iraq, what went through your mind. >> this is the geographic south pole. ♪ ( whirring and crackling sounds ) man: assembly lines that fix themselves. the most innovative companies are doing things they never could before, by building on the cisco intelligent network. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. out the door. you can continue watching cnn from your mobile phone or if heading to work, you can watch it live from a desktop. go to cnn.com/tv. president obama is spending most of the next few days in virginia, a state he carried in 2008, ending a 44 year losing streak. democratic presidential candidates in the old dominion, speaks next hour in virginia beach, then off to hampton, roanoke. it is important to both candidates. >> reporter: it is important to both. particularly for president obama as you pointed out, he did win there in 2008, first time a democrat had done that in decades. it was a narrow victory for the president trying to hang onto the key battle ground state. seeing in the last few months, a strong pinch from the obama team to go after military veterans. that's especially important in a state like virginia that has a big population of military personnel. so the president's message not only today but tomorrow will be focused on helping the middle class and helping people get into the middle class. you'll also hear the president continue to put pressure on congress to extend bush era tax cuts for the middle class, kyra. >> and the president has been doing some reflecting on -- admitting to a mistake? >> reporter: that's right. admit to a mistake, the opposition will jump on it. you heard the president in that interview with cbs, talking about some of the challenges of the past three-and-a-half years. it is not the first time we heard the president talk about this. back in 2010 during one of his backyard events in seattle, washington, the president talked about how he was sort of moving quickly in emergency mode, did not have a chance to properly advertise what his administration was doing. so that message again now being amplified in this campaign environment. you hear the president talking about challenges, saying he needs to do a better job of not only explaining but also inspiring. >> the mistake of my first couple of years was thinking that this job was just about getting the policy right. and that's important. but the nature of this office is also to tell a story to the american people. gives them a sense of unity, purpose, optimism, especially during tough times. >> reporter: the president in that interview also said if elected a second term, plans to get out of town more to meet with american people, listen to them, have conversations. but i'll tell you as pointed out earlier, when you admit you have any kind of failings, the opposition will jump all over it, that's exactly what republicans did yesterday shortly after some transcripts from that interview were released. rnc sending out a statement saying the decision for voters isn't about can the president tell a good story, can the president create jobs. it plays into the narrative from republicans that the president hasn't done a good enough job turning the economy around, kyra. >> dan lothian, thanks so much. president obama had something to say about it. paul, did obama set himself up with that comment? >> everything president obama says will be scrutinized, rebutted by the other side, no doubt about it. you could say it was an opportunity for romney campaign to quickly respond and they did. put out a statement from the presumptive republican nominee minutes after that sound aired yesterday. here is what mitt romney said. president obama believes millions of americans that lost their homes, their jobs, lively hood because he failed to tell a good story. being president isn't about telling good stories, it is about leading. no wonder americans are losing faith in his presidency. the response from mitt romney. going after every word, parsing every word the other says. >> everyone is listening to every word, trying to figure out who the vp will be. rumors are swirling. hearing condoleezza rice. what's the deal? what do your sources say? >> reporter: yesterday, a screaming headline from the drug report, a popular website on the conservative side, talked about a new name high up on that list, condoleezza rise. her name has been bandied about a long time, and a lot of good reasons why. she's african-american, she's a woman, held a lot of experience, national security adviser, and secretary of state for george w. bush in his second term. do a reality check here, also things against her. a, when it comes to abortion, important to conservatives, social conservatives. she called for abortion rights to an extent, that doesn't gel with mitt romney, also on illegal immigration doesn't match up well with romney. she herself in a number of interviews, including interviews with wolf blitzer, with candy crowley and others, piers morgan, it is not going to happen, recently said it in a cbs interview. >> i am saying there's no way i will do this because it is really not me. i know my strengths, governor romney needs to find someone who wants to run with him. there are many people that will do it well and i'll support the ticket. >> that's a no or it's not going to happen. >> that's it's not going to happen. and no. >> reporter: kyra, the only people that know who the names are, mitt romney, his wife ann, maybe beth meyers, running the search. they're not talking. one other thing, the whole story moves the conversation from that bain capital story over to this. maybe that helps mitt romney to a degree. >> point well made. paul, thanks. as bill clinton says mitt romney should open his finances, specifically tax returns on the "today" show, the 42nd president took issue with romney's release with just one year of his 1040s. >> this is the first time in, i don't know, more than 30 years that anybody running for president has only done that. you know, it is typical i think we all release 10, 11 years. i think senator mccain released over 20 years of tax returns. that i think has been -- that struck me as a little odd. >> and mitt romney says, and i quote, all the taxes are paid as appropriate, all of them have been reported to the government. there's nothing hidden. everyone has goals. take the steps to reach yours, with us with real advice, for real goals. the us bank wealth management advisor can help you. every step of the way. from big steps, to little steps. since 1863 we've helped guide our clients, so they can take the steps to help grow, preserve, and pass along their wealth. so their footsteps can help the next generation find their own path. all of us serving you. us bank a prestigious university shamed. if you didn't get to read parts of the report released yesterday, i will tell you now, it leaves the reputation of joe paterno and top officials tarnished. investigation led by louis freeh accuses them of not only covering up jerry sandusky's sexual abuse of young boys, but empowering sandusky to continue the attacks. also named, the school board of trustees, accused of not performing oversite duties. today, that board meets at a regularly scheduled meeting. we still don't know whether or not they'll discuss the report. we can tell you that more criminal charges could be on the way for the failure of the leaders to report what they knew. well, what they knew, that is what outraged so many people when you talk about the penn state scandal, including a number of op-ed writers like sally jenkins with "the washington post." joe paterno was a liar. coverup artist. a can ee and unfeeling power broker who put protecting his reputation ahead of protecting children. and not only are we witnessing a public lashing by many, we are starting to witness a movement to wipe paterno's legacy right off campus, starting with the removing of this iconic statue. sally jenkins joining us by phone from new york. she's there, working on a book. we will definitely talk about that when you finish up, sally, in a year. but let's start with your op-ed piece if you don't mind. i remember when you did the interview with paterno, you talk about this in your op-ed piece. i'm curious, at that time, did you have any gut feeling that he was lying to you? >> i had a suspicion that he wasn't being truthful about some things. i also felt he was truthful about some other things. you know, my main job in that story was to get paterno's account of himself on the record, and print it, see if it stood up to scrutiny. and it didn't. the freeh report flatly contradicts his account of his knowledge or lack of knowledge in 1998 of a police investigation into jerry sandusky for molesting two boys in the penn state football showers. >> what's your sense, sally? you know, through all the years of writing, interviewing, why do you think he blatantly lied? went on record to so many people and said he didn't know anything. >> well, i think the stakes were very high. i mean, the question of what he knew in 1998 was the critical question, and it was the question on which i pressed him the most in our interview, which wasn't lengthy, but you know, i asked him four different ways, four different shapes and forms, you know, did you know anything about the '98 investigation. if not, why not, how could you not have heard a rumor. he was adamant he had no knowledge of it. joe paterno's entire account of his behavior around jerry sandusky rests on his claim to be ignorant of the 1998 police investigation. it now turned out he did know about that investigation and so it makes all of his subsequent actions look very much like a coverup. >> so now there's a growing movement to take the statue of him down, to take it off campus. what are your feelings about that, do you support that? >> well, one of my feelings is maybe they ought to leave it up to remind people how a good man can make such a bad decision. you know, the stakes were very high for joe paterno, in 1998, penn state built its reputation as the moral arbitrator of college football. claimed to do everything that everybody else could hold them to moral high ground. the idea that a child molester occupied the office close to his, i think joe paterno just went into denial. he had a great deal of difficulty admitting that. that denial is forgivable. what's not forgivable is a sustained lie over a period of ten years, from 2001 onward, when joe paterno knew that not once but twice jerry sandusky had been accused of molesting boys in the penn state showers, and he took no action. >> matt millen now with espn played for paterno and sandusky. he said to me this shows he was fal i believe, he made a mistake. is his legacy spoiled? yes, absolutely it's spoiled. but there's still a lot of good there. sally, is there still a lot of good there? >> well, i think he undeniably graduated players at a higher rate than most of his peers. he was for many years a wonderful educator of young men. what's baffling is he failed to see that young boys needed protection to be able to grow into the kind of young men he claimed to produce. that's what's so confusing. yes, he did a lot of wonderful work at penn state. he was a witty man, charming man, intelligent man, in many ways a moral man, but he failed the single most important moral test of his life. >> what outrages you more, the coverup or the absolute disregard for victims? >> well, they're one in the same. those two things are the very same thing. the coverup was a manifestation of lack of regard for the victims, central lack of empathy, a central galluping self absorption that prevented the top people of echelon at penn state of recognizing boys were being harmed in the most profound way. >> sally jenkins, sports columnist from "the washington post." thanks for calling in. joe paterno's family released a statement after yesterday's skating report. they said in part, one great risk in this situation is a replaying of events from the last 15 years or so in a way that makes it look obvious what everyone mufr known and should have done. the idea that any sane, responsible adult would knowingly cover up for a child predator is impossible to accept. the far more realistic conclusion is that many people didn't fully understand what was happening and underestimated or misinterpreted events. joe paterno wasn't perfect, he made mistakes and he regretted them. he is still the only leader to step forward and say that with the benefit of hindsight, he wished he had done more. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. what ? customers didn't like it. so why do banks do it ? hello ? hello ?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello ? ally bank. no nonsense. just people sense. not a day goes by you don't hear about violence in syria. activists say what unfolded in the last 24 hours is bloodshed on an unprecedented scale. opposition groups say up to 287 people were slaughtered by government forces, most in the village of tremseh. president says terrorist groups are to blame. and syrian protesters make it clear they're tired of diplomatic talks that have gone nowhere. and they want special envoy kofi annan to leave. mo, what can you tell us about the massacre, start there. >> reporter: the opposition activists we have been speaking with yesterday say it was the deadliest day since the uprising 16 months ago. at least 287 killed across syria yesterday. and 220 in a village tremseh alone. for hours, the town was surrounded by syrian tanks, it was shelled relentlessly. after the shelling, tanks, syrian security forces and members of militia, pro-regime entered that town, started slaughtering families trying to escape the violence there. we have some very disturbing amateur video, can't authenticate it. seen it posted. reports showing the aftermath. it is graphic. must warn videos. one shows bodies in the streets, gives you some sense of this atrocity yesterday. another one of the videos purports to show a man crying over the body of his father who activists say was killed as a result of that massacre yesterday. it is really, really horrific stuff, very, very difficult to watch. for its part, the syrian government continues to blame the violence in syria on armed terrorist groups, not a surprise. they have been using that line since the beginning of the uprising. syrian government says yesterday they received distress calls from that town and that they we went there and responded because they heard terrorist groups were there, they say 50 died as a result of clashes. >> now there's protests to get rid of kofi annan. what is the deal there, why are they so fed up with him? >> it is interesting, kyra. we heard many activists say what they're calling for are protests. we see evidence of protests, a lot of videos showing protests across the country where people are expressing outrage at kofi annan. they are upset about it, many marching in solidarity. they say since the u.n. observers got in there and since he became the special envoy, they say not only has violence not ceased, it has gotten worse. they call for the removal as the special envoy to syria. they want to see the international community step in, make things better. >> thanks so much. ambassadors at the u.n. security council will resume talks about syria and military intervention. meanwhi new satellite images of north korea are ringing alarm bells among intelligence analysts now. these photos actually show increased construction activity at a nuclear facility near the capital of pyongyang. north korea claims this reactor is intended to help solve domestic energy shortages. they also say it is part of an effort to build noouks. they said they would suspend nuclear activity in terms for shipment of food from the u.s., carried out a rocket launch in april despite that. favorite way mexican drug cartels use to get stash into the u.s., tunnels. the feds discovered another. this one 240 yards long, running 55 feet underneath the mexican arizona border. casey wian has more. >> reporter: this is the way agents first discovered this tunnel a few days ago, under this giant container of water. over here, you can still see 55 gallon drums that contain the dirt that was dug out stretching 240 yards across the u.s., mexico border. >> this is the most sophisticated one i've seen in arizona. most of the tunnels we have in arizona, those are digging through dirt to get to the sewer system, using that sewer system, punching out again. this one, when you look down the hole, you're going to see, it is completely 4 x 6 all the way, plywood all the way around it, rebar in there, reinforced. >> reporter: it is so narrow, so deep, our photo journalist and his camera needed to descend separately. >> clear the shaft. >> clearing the shaft. >> reporter: each with the help of a harness. >> gets smaller. >> gets smaller towards mexico. to crawl, if you were to go a whole lot further. >> there's no dirt in here, it is very clean, and there's light, electricity, and a fan even. >> reporter: u.s. authorities found 156 cross border tunnels since the early 1990s. lately, they have become more sophisticated as drug detection technology above ground improves. agents had the area under surveillance since january when the tunnel was actually discovered. arizona public safety officers pulled over a pickup truck on the highway north of here, discovered 39 pounds of methamphetamine. after interviewing occupants of the truck, they linked it to this facility, and they now have three suspects in custody. casey wian, cnn, san luis, arizona. >> no drugs were found in the ice plant on the u.s. side, just bags and barrels of dirt. for more, go to fbi.gov. yeah, we found that wonderful thing. and you smiled. and threw it. and i decided i would never, ever leave it anywhere. because that wonderful, bouncy, roll-around thing... had made you play. and that... had made you smile. [ announcer ] beneful. play. it's good for you. well, if you take a look at your thinning hair, thinking about popping a pill, you're going to want to hear this next story. it is a popular drug that's taken by millions of men to fight baldness. it could be causing now some major sexual side effects, even after you stop taking the pill. we have more details on propecia. what exactly, how did this come about, and what exactly is the research telling us now? >> this is a doctor at george washington that wonders could this be causing side effects because there's talk about it. >> there's warnings when you take this, it could cause sexual side effects. >> there's warnings some men experienced certain sexual side effects. we will get to those in a minute. talk about the study, it is interesting. it is a small study. 54 people, that small. and not a random sample of men. millions have taken propecia. he got most of the study subjects from a website where men go that are having problems. this is a website you go to if having sexual problems you think because of a result of propecia. they found 90% of the 54 men had sexual problems as a result of taking, felt they had sexual problems as a result of taking propecia, and they lasted after they stopped taking the drug. the drug manufacturer says these were men having problems already. they say they were taking propecia and afterwards had problems. it wasn't a random sample of millions of people that took it. merck says causal relationship between the use of propecia and continued sexual dysfunction after distinction of treatment has not been established. they didn't look at a thousand men taking it to see what percentage had sexual side effects, they looked at men that say they were already having sexual side effects from propecia. bottom line, if there's a man thinking about taking it now, what's the recommendation and is it a risk and, you know, should they be worried about sexual side effects? >> you should be an empowered patient and think it through. first of all, you should know it works on testosterone. that's the way it works. the fda has talked with merck, they put a label that talks about certain sexual side effects. let's look at what they talk about on the label. it talks about ee recognize tile dysfunction, libido disorders, ejaculation disorders, orgasm disorders. it doesn't say propecia causes it, but says some men complained of those things. that's important to know. men should think about this. you have thinning hair. do you want to take a drug that might possibly do that? go to the doctor, maybe there's another drug. maybe you want to put up with thiping hair. it is an unusual side effect, but could happen to you. >> important to note to speak with your doctor as elizabeth mentioned before stopping or starting any drug. ♪ ♪ ♪ ♪ ♪ just a few minutes ago i talked with sally jenkins from "the washington post," a sports columnist. she had the last interview with joe paterno before he died. we just received video from that interview. the legendary football coach talks about how he felt when he first heard the allegations that jerry sandusky was sexually abusing young boys. take a listen. >> i was shocked and saddened when i heard about jerry sandusky. i mean, shocked and saddened because nobody had any inkling. >> how does something like that happen do you think, how does someone hide in plain sight that way? >> i wish i knew. i had never had to deal with something like that. >> again, that was joe paterno speaking with "the washington post" sally jenkins in the last interview before his death. and the last interview before the release of former fbi head louis freeh and his scathing report showing paterno did know about jerry sandusky abusing young boys. when i say pageant, you think beautiful women on stage head to toe. contestants are gearing up to compete in miss florida package tomorrow. one contestant is breaking ground not because she's perfect, but has imperfect vision. john zarrella introduces us to this contestant. >> reporter: she must hold her face inches from the sign in sheet. you see, connor is legally blind. >> we're four feet apart, you can't see me. >> no. it effects my retina. my central vision. my peripheral vision is intact. >> reporter: at six months old she developed over her left eye has man gee only a, build up of blood vessels. surgery took care of that. in a few years, she was diagnosed with star barks, a rare disease, one had nothing to do with the other, just plain bad luck. >> i fell going down the steps of the lincoln memorial, believe it or not, but you know, i managed. >> reporter: star garts, gradual worsening of blindness is incurable. she has a thirst to overcome the disability. she was in gymnastics. >> when she had to do vault, she ran into the vault one time. >> reporter: while she can barely see, her vision of the future is clear. she's the first legally blind woman to sign up to compete in miss florida usa pageant. winner goes to nationals. her journey began just a couple years ago when she was 16, on a whim, she entered a local teen pageant and won. >> which is the first one you won. >> that bad boy. >> what is that? >> harvest queen. >> reporter: each crown helps build in confidence and self esteem that was lacking. each new success led her here. >> what makes her special is her drive. she's admirable. she doesn't give up. >> reporter: pageant officials say other than helping her get marks on the stage, she's treated like all the other young women and she never plays to her disability. >> she's the last one who will tell you this, she prefer you not know. more importantly, it is not what i can't do, it is what i can do. >> i have come to learn it is not about winning the pageant, it is about i am so glad my story could be shared, and at least i can inspire one person. and if i can inspire one person, i feel like i've won. >> reporter: perhaps what's most refreshing, she doesn't take herself too seriously. john zarrella, cnn, florida. >> despite being legally blind, she ran track in high school and graduated with over a 4.0 gpa. the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. what do you think. how should school teachers be evaluated, even pay. graduation rates, writing skills, parent satisfaction? there's a new law just passed in ohio where test scores will actually decide how much a teacher gets paid. we should point out, this is your beat, a show you do in schools across the country get to see you in the news cast. what's the reaction to this, and how exactly would this work? >> ohio used to be like other states in which an outside obser observer would come in and rate that teacher depending what the observer saw. in ohio, this is what's changing. teachers will be graded. half the grade will be determined how well students perform on tests. test scores are a major factor, and the grades are used to determine who gets promoted, who gets paid what, who gets fired. one of the things you see on the graph, seniority will take a back seat. what that means is all but the top performing teachers teacher state are going to be evaluated annually. >> when schools do well with test scores they get more money. >> yes. >> so is this -- there has to be controversy surrounding this. just because you have good test scores doesn't necessarily mean your student is learning and doing well and getting a good education. >> that's where the criticism comes in. ohio does receive race to the top funds from the federal government. the federal government does want ohio as all states that receive those funds to show constant improvement for students shown by those test scores. a lot of controversy with test scores. critics say that it ignores other types of learning. take a listen to what teachers are saying about this. we have a couple comments, one from a teacher saying this is fine as long as athletes are ultimately paid based on the final scores of games. as long as dentists or doctor salaries are determined by patient health. another teacher talking to us saying this law, and this is a teacher who taught at two different schools with different students and had different results. she said this would basically mean she would never go back to teach the students who didn't perform as well. that is where the heart of the concerns of critics lie because they're saying in poor areas whether urban or rural you might have students concerned about where the next meal is coming from and they need good teachers but if they're not focused on tests for any one of a number of reasons -- they might not have parental support either -- those teachers are not going to get promoted. they're not going to get -- they might lose their jobs. >> could go into effect year? >> 2013 school year. >> could be a little tweaking to the law. you will follow up and let us know what happens. >> will do. >> thanks. read more about this story at cnn.com/education. this next man grew up dreaming of a better future for his hometown slum in south africa. when the dream never became a reality he decided to change things himself. meet this week's cnn hero. >> since then the town has not changed. there is no electricity. people are living in shacks. growing up here makes you feel like you don't have control over your life. many children drop out of school because they don't have school uniforms and text books. i realized the only way the town could change was through education. i'm helping educate the children so that we can change the town together. we help the children by paying for their school books, school uniforms. our main focus is our tutoring program that we run four days a week. as young people here who are born and raised here we know the challenges of this community. we also do a number of activities. we've got to come together for fun and also come together for academics. >> this program gave me a chance to go to university and paid for my fees. that's why i came back to help out here. a little can go a long way. >> what subjects you need? math and science and english. >> i did not go to university but whenever i help them i feel excited. >> i am going to be an account anlt. >> i am going to be a lawyer. >> i am going to be a nurse. >> the work we're doing here is bringing change. >> don't forget we're always looking for people making a dinks. if you have someone in mind nominate them today. tell us their story. go to cnn heroes.com. [ nurse ] i'm a hospice nurse. britta olsen is my patient. i spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. one night britta told me about a tradition in denmark, "when a person dies," she said, "someone must open the window so the soul can depart." i smiled and squeezed her hand. "not tonight, britta. not tonight." [ female announcer ] to nurses everywhere, thank you, from johnson & johnson. ♪ [ female announcer ] to nurses everywhere, you want to save money on car insurance? no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem. you want to find a place to park all these things? fuggedaboud it. this is new york. hey little guy, wake up! aw, come off it mate! geico. saving people money on more than just car insurance. ...more talk on social security... ...but washington isn't talking to the american people. [ female announcer ] when it comes to the future of medicare and social security, you've earned the right to know. ♪ ...so what does it mean for you and your family? [ female announcer ] you've earned the facts. ♪ washington may not like straight talk, but i do. [ female announcer ] and you've earned a say. get the facts and make your voice heard on medicare and social security at earnedasay.org. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ you know him for songs, and grammys. there is a side of lenny kravitz you wouldn't have seen coming. we'll go through his house in paris and see another one of his passions -- interior design ♪ ♪ >> reporter: lenny kravetz -- rock star, actor. interior designer? why not? >> i was always into my environment. you know, even when i was a little kid. >> reporter: i sat down with kravitz at his palatial paris home, his home for seven years. >> there you go. >> reporter: the four story mansion is filled with all of his favorite things -- art by warhol, a lucite piano. his four grammys. photos of his late mother actress rocksi roper, and the couch and chandelier he designed. >> it always made me feel good. it made the music sound better. you know, the lighting was right. everything was good. it just goes hand in hand with everything that i do creatively. >> reporter: in 2003 he founded kravitz design, a residential, commercial, and product design company with a real office in new york with real workers and real projects. >> the same way i make my music, the same philosophy. i'm very detail oriented. if you put me in a room that's perfect except for one flaw my eye goes right to the flaw. kind of a sickness. my attention to detail. but that's the way i am. he's designed condos and hotel suites in miami, wall paper and these chairs. >> does one help the other? >> yeah. when i'm doing music i need a break from music. doesn't mean i want to stop being creative. >> reporter: how do you keep it all straight? talking about tile designs in between gigs? >> absolutely. you have to. >> reporter: this is just the beginning. >> the plan is to make it a lifestyle brand. that's been my dream for this company in the same way you would see ralph lauren. when people say they enjoy something or something gives them pleasure, the music a couch, whatever it may be, it's just a great thing to be able to share something with other people. >> reporter: alina cho, cnn, paris. >> the top names in the fashion industry are in paris for fashion week show casing their lates designs. you'll hear more from top designers and get an exclusive back stage pass from paris with alina cho saturday, 2:30 p.m. eastern. thanks for watching. continue the conversation with me on twitter or on facebook. "newsroom international" starts right now. welcome to newsroom international. we are taking you around the world in 60 minutes. right now gunfire, pipe bombs, fireworks, bricks. police in belfast, ireland say that demonstrators used all of that against them in violent protests over the last 24 hours. the violence broke out during a pro british protestant march in a catholic neighborhood. 20 officers suffered minor injuries. two people were arrested. to london now. new details we learned about possible murder in one of europe's wealthiest families. you know from reporting here that eva rausing was found dead this week in her home in london. police initially arrested her billionaire husband hans on drug charges. now he is also a suspect in her murder. a formal investigation into the woman's death began today in the rausing family. they are connected to tetrapak the world's biggest food packaging company. already in syria today 56 people reported killed in fighting across the country including a large explosion in damascus that some witnesses say was a car bomb. syrians are shaken by what happened today but also yesterday. more people died thursday, yesterday, in syria, than any single day since the uprising started a year and a half ago. [ speaking in other language ] >> this is a city not far from the operational center for the rebel up. you saw that young man crying over the body of an older man calling his name while fighting is raging in the background. it is so hard to even watch. this is just one moment, just one of the 220 men, women, and children who were killed yesterday in that village alone. now, people in one syrian town are reacting now with anger at the united nations, specifically the special envoy calfl kofi annan. they say the u.n. peace plan annan sold really has done nothing but buy this government more time to do this killing. first of all, this is a -- so hard to see. the syrians now, the protesters, are turning on kofi annan. why are they blaming him? >> reporter: the opposition activists we talked to say ever since he's been involved in the syrian conflict, appointed as the special envoy to syria and since the u.n. observers entered the country they say not only has the violence not ceased, not only has kofi annan's six-point peace plan not stuck or the cease-fire been implemented but the violence has only ratcheted up. when you see videos that are so grisly and gruesome and keep hearing of more massacres and alleged atrocities the opposition says they are totally in effective and that's why there are so many demonstrations reportedly in syria today. not just people there in solidarity with the victims of the massacre yesterday but also calling on the removal of kofi annan as the special envoy to syria because they want the international community to step in and really do something to stop the violence here. >> what is the alternative here? i mean, if they can't restore faith in the diplomatic mission, do they think it's about arms, who is going to win this battle on the streets? >> reporter: well, that's the key question. you know, today you've seen kofi annan call for a cessation of violence saying he was shocked and appalled at what happened. we've seen statements from the head of the u.n. observers mission that is suspended in syria verifying what happened yesterday saying even aircraft were used in the offensive yesterday. he says they'd like to go to that village and further investigate but can't until violence ceases. the people in syria are wondering what exactly can be done. they've asked for a while, the opposition groups, for some sort of either no fly zone or military intervention from the international community. they say the powers that need to step in haven't stepped up to the plate and because of that bear some of the burden for what is going on in syria. they ultimately blame the assad regime but say the international community hasn't helped the people the way they need to. >> i want to read a statement. the white house repeated its demand for what they call a coordinated international response at the united nations and president obama himself says that assad has lost his legitimacy to lead. do the syrian people believe that the united states needs to do more? >> the opposition activists we've been speaking with have said for a while that the united states and other world powers need to do more. they believe that the u.n. has been completely ineffectual, the observers mission has been ineffectual, that something big has to happen. world powers need to step in either with some sort of military intervention or some sort of effective plan to be able to help what's going on there. either remove bashar al assad from power or do some military intervention. that hasn't happened. they say they're tired of waiting. the main opposition group said today all they hear about are people reporting back to bodies whether it be in new york or geneva. that doesn't do anything. it doesn't stop the atrocities and these atrocities and massacres have to stop now. >> thank you for bringing this to our attention as always. we appreciate it. it is the nation's largest bank and a stock probably in her 401(k). now we're just learning how much jp morgan lost in a bunch of risky trades. turns out it is a lot more than they initially claimed. in may the ceo jamie dimon pegged the loss about $2 billion. today in a call with investors he revealed it was $5.8 billion. that's almost triple the original estimate. >> we learned a lot. i can tell you this has shaken our company to the core. what happened here is that the team went back and said let's redouble our efforts to make sure we're running a great company. we could never say we won't make mistakes. we operate in a risk business. >> i want to bring in richard quest from london. >> he's right this is a risk business but how does this affect our investments when you look at those numbers today? >> directly it doesn't. unless you happen to be an investor in jp morgan chase in which case you have every right to be very angry and you would be asking if you were a shareholder why on earth this took place. if you look at the report they prepared into it just about every mistake that could be made in risk management seems to have taken place. the wrong people were given the wrong responsibilities and made wrong decisions at enormous costs to the bank. this is the bank's money that's been lost. billions of it. it is jp morgan's shareholders who will rightly be furious. yes there is an argument that some banks are too big to fail. they've had fed money. they've been propped up by the central banks. therefore there is a public policy issue. but everybody i've spoken to today seis, suzanne, says this is jp morgan's stupidity and it's jp morgan's shareholders that will bear the brunt. >> so jp morgan also talked about the fact that they posted almost a $5 billion second quarter profit. how did that actually happen? >> well, imagine you've taken a bet. basically this. imagine you've taken a bet but it's not just a bet. it's an open ended bet. one where if things get worse you stand to lose more money. if they get better you make more money but it is never ending. here is what happened to jp morgan and where it gets really interesting. back in april, when morgan said the problem they had, everybody else in the market suddenly knew that jp morgan was virtually naked. they could work out what their position was, what the market was, where they stood, and being the financial markets where frankly you prey on the weak and they are tomorrow's lunch they went after them. what i'm hearing from people is as soon as the other banks realized how morgan was standing in the market after they had to reveal the bareest, remember jamie dimon refused to give details. he wouldn't say anymore. >> right. >> he kept saying, for good reason, his competitors all around him were working out what he was doing and literally preparing to eat his lunch. that is one of the reasons because they have been forcing the market in a particular way and it's one of the reasons why the losses have swelled. >> richard, tell me one thing. these losses are largely stemming from this london trader nick named the london whale. can you tell us about what this, if it has an impact on the european banks and businesses? >> no. no, again, you know, this is a -- this was a strategy by the bank's admission. it was poor policy. it was poorly executed. it was poorly -- poor risk management. if you look at what they say today everybody who was involved has been severed. they use that nice little term of art. not only that they're not getting any compensation. and here's the interesting bit. they're hoping to do a two-year claw back on any bonuses that they may have got. and this was a wholesale incompetent negligent piece of banking which jamie dimon admitted as such. frankly, he probably has to take some of the blame, too, because the firm management as it's called didn't do the necessary oversight although perhaps to his credit they were getting assurances from people underneath that things were okay. >> all right. richard, thanks for breaking it down for us. have a great weekend. here's more of what we are working on for this hour of newsroom international. he once was george bush's top spy and director of the super secret national security agency and could read your license plate from thousands of miles away. now removed from the government he is working on the challenges that fragile and failed countries pose for the international community. an exclusive interview with the former cia director. plus the pride of the usa decked out in uniforms made in china. one lawmaker says we should take these olympic uniforms and burn them. on a walk, walk, walk. love to walk. yeah, we found that wonderful thing. and you smiled. and threw it. and i decided i would never, ever leave it anywhere. because that wonderful, bouncy, roll-around thing... had made you play. and that... had made you smile. [ announcer ] beneful. play. it's good for you. all right. some consider it a scandal. the united states athletes going to london competing in the olympic games head to toe in uniforms made in china. listen to senate majority leader harry reid beside himself on this point. >> i am so upset that i think the olympic committee should be ashamed of themselves. i think they should be embarrassed and take all the uniforms, put them in a big pile and burn them and start all over again. >> michael holmes from cnn international, you and i just did this during the break. my dress? china. >> yeah. >> my watch switzerland. my shoes thailand. where are your clothes from? >> slovenia. not made in china. made in slovenia. who knew? >> what the big deal here? >> it's a pr blunder. the american olympic team going off to the olympics in london should be dressed in american -- sorry. it's free market eek eight woco work. this is globalization and what you get when you have a team privately sponsored. they're going to go like all businesses do for the cheap place to make the clothes and that's all that profit. >> the olympic committee is defending the company and saying look. this is not like the government decided we're going to sponsor the olympics and the outfits, that type of thing. >> yeah. >> what do you make of what the athletes, i mean, how they feel about this, the fact that this is caught up in patriotism and pride? >> some are quite stoic. it is a bit of a mix. a lot of saying thanks, china. i think one of them said. the interesting thing when i started looking into this, i'm australian. australia's olympic uniforms? made in china. and new zealand's were designed in italy and made partly in turkey, italy, and china. the british uniforms sponsored by a german company and according to some elements of the british press were made in indonesian sweat shops. we're not the only ones out there. i remember it wasn't that long ago there were miniature statutes at the smithsonian of american presidents made in china. we buy cheap chinese goods because we like cheap chinese stuff. this is sort of a symptom of that. ralph lauren goes to where he can get it made cheap. >> there was an athlete who spoke out about this, an olympic swimmer, dara torres. she said she'd like to see the uniforms made in the united states. >> you know, we all want to see the global economy do well but here in the u.s. the economy isn't too good either so wearing the u.s. uniform going out there representing the united states it would be nice if it was actually made in the united states. >> was there anything they can do at this point? ralph lauren, you know, harry reid is calling them to burn it. i don't think that's going to happen. >> the games are like a week and a half off. you have to go do some quick measuring of a bunch of unusually sized athletes to get the clothes whipped up in no time. you probably have to get them overseas to get done in that time. it is a pr blunder. wouldn't it be terrific if it was made here. the u.s. trade devas swficit wi china has gone up 18%. textiles, clothes, shoes in the u.s. are up 50% from china. so we buy this stuff. you know? >> we do. we support it. maybe next, after next four years. maybe next go round they'll think it through. a little forethought. >> the pr -- there are economic realities and we like a free market economy. this is what happens. it's just not great pr. >> no. whatever we're wearing we're going to kick some -- >> all right. thank you, michael. >> good to see you. it's friday. probably ready for a nice getaway after a long week at work. i know i am. well, we have got a list of the world's best hotels. from here in the united states all the way to tanzania. checking the charts. tdd# 1-800-345-2550 looking for support, tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade. tdd# 1-800-345-2550 and i do it all with charles schwab, tdd# 1-800-345-2550 because their streetsmart edge platform tdd# 1-800-345-2550 helps me trade quickly, intuitively. tdd# 1-800-345-2550 staying on top of the market is key! tdd# 1-800-345-2550 and the momentum tool, tdd# 1-800-345-2550 it lets me do it at a glance, tdd# 1-800-345-2550 so when things shift, i'm ready. tdd# 1-800-345-2550 then to track the stocks i have my eye on, tdd# 1-800-345-2550 i turn to schwab's high/low ticker. tdd# 1-800-345-2550 so i can spot a potential breakout tdd# 1-800-345-2550 before it breaks out. tdd# 1-800-345-2550 and get this...i can even trade, tdd# 1-800-345-2550 change my orders or check out my positions tdd# 1-800-345-2550 right on my chart. tdd# 1-800-345-2550 my system works for me. tdd# 1-800-345-2550 does yours work for you? 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what are some of the results of these trends? >> one thing we've found which we love, the idea of looking at trends and seeing what people want to do. people are looking for experiences, things that feel authentic. they want to live a little bit on the wild side. so our first winner is an incredible safari lodge in tanzania. it's the grimedi preserve. i wore an animal print to celebrate it. going on safari is a trip of a lifetime and this incredible property is really an experience of a lifetime. not only do you get world class guides. you get to be in a 350,000 acre private reserve. you get tons of animal sightings. so much that you need to take multiple memory cards so you can take so many pictures. the setting is incredible. the hotel itself is beautiful. the tented camps are some of my favorites. it feels like they're fitted out for royalty. >> what about number two? >> number two is also great and this is closer to home. this is in darby, montana in the bitter root mountains. the triple creek ranch. this is number two world's best hotel according to our readers. what the readers love is the fact that they can really get outside and enjoy that beautiful rocky mountain nature. you can fly cast, you can do every kind of activity you can imagine even going around by helicopter. you can also do something with the chef and learn to cook some local -- maybe something you've caught. there are only about 23 cabins so it is very intimate, very charming, and very lux. >> it looks gorgeous. it looks quite remote as well. what is number three? >> number three is the southern ocean lodge. this is in kangaroo island in australia. now, it's named for the beautiful, adorable kangaroos there and you'll see koalas, fairy penguins. this is an incredible place and it's a game changer on this island. there is not much else there. it is only about eight miles from the mainland and half hour flight from ad late but you feel a world away. this hotel really gives you extreme access to nature but also with wi-fi and 500 thread count sheets so a little bit of both worlds. i like that. >> love it. luxury. number four, what is number four? >> lap of lux shi is this hotel in rajaistan. if you're thinking about going to india this is a great primer. this is a great place for someone to go o know a honeymoon. it looks like you're in the middle of a fairy tale palace. your incredible experience starts at the airport where they pick you up and take you by boat to the hotel. this is a place where you can get private yoga lessons with their on site yoegi. you are really, when you say lap of luxury this is exactly it. >> are these affordable? >> these are definitely hotels you do want to go for a special experience. we don't call it affordable. we say they have a great value for money. what they offer in terms of the services and experiences you get is definitely worth the money. but these ain't cheap for sure. >> okay. a special experience. special occasion. thanks. good to see you. have a great weekend. >> thank you. fast food. lack of exercise and your jeans. we know these can lead to diabetes. do you know which country has the most diabetics? it is not the united states. the medicare debate continues in washington... ...more talk on social security... ...but washington isn't talking to the american people. [ female announcer ] when it comes to the future of medicare and social security, you've earned the right to know. ♪ ...so what does it mean for you and your family? [ female announcer ] you've earned the facts. ♪ washington may not like straight talk, but i do. [ female announcer ] and you've earned a say. get the facts and make your voice heard on medicare and social security at earnedasay.org. home proctor plus, from liberty mutual insurance, where the costs to both repair your home and replace your possessions are covered. and we don't just cut a check for the depreciated value -- we can actually replace your stuff with an exact or near match. plus, if your home is unfit to live in after an incident, we pay for you to stay somewhere else while it's being repaired. home protector plus, from liberty mutual insurance. because you never know what lies around the corner. to get a free quote, call... visit a local office, or go to libertymutual.com today. liberty mutual insurance. responsibility. what's your policy? welcome back. we take you around the world in 60 minutes. we all know diabetes is a serious disease that can have deadly complications. it is striking people in one country far more frequently than anywhere else. more than 62 million people in india are diabetic. you compare that to the united states where less than half that number have diabetes. there is another disturbing trend. indians are often diagnosed in their 20s. that is 20 to 30 years younger than most americans develop the disease. charles matly is a celebrity chef known for making $7 meals. he is also a filmmaker and his documentary "the diabetic you" has just wrapped up shooting in india. nice to see you in the house. >> glad to be back. >> very good to see you. tell us a little bit about what you found in india. >> well, india is a very beautiful country and the film that is based on my life with diabetes. i'm going across the country and the world. i am type 2 diabetic. i wanted to go to india to see what the rest of the world was experiencing. why diabetes is so rampant in india. actually just last year it was only 50 million people with diabetes so you're talking about a 12-person increase in just a year. unfortunately india is experiencing growth and, of course, because of the western population and western influences such as fast foods, burger king, our influences, it's spreading to india. so the foods are very rich in sugar, very rich in milk and very rich in other things that allow -- i gained probably two to three pounds, probably five pounds while i was there myself. here i'm going to india to talk about why people have diabetes and i gain weight. and then of course exercise, diet, things like that. it is an older -- a lot of the doctors are older doctors and some of the things they're pushing are meds first. that's one of the missions i was truly on because when i was diagnosed the first thing they try to do is give me some medication and i thought, wow. there had to be another way. so what i wanted to do was kind of get out here and find out. >> sure. >> how people are living. what other ways are there to fight diabetes especially type 2 diabetes? and it's been an unbelievable journey. we've traveled around the country. we'll be going to dubai, china, which is the second largest population of diabetics and it's just been an unbelievable experience. >> tell me about what you found. i understand that they are -- they're diagnosed much later. they're living with diabetes and they don't find out until later in life. is that right? >> well, even in america there are over 54 million people who are prediabetic. there are over 7 million so-called undiagnosed diabetics. a lot of people think that because you're skinny they can't have diabetes so they don't go get checked. >> right. >> a lot of people are walking around and think they're healthy. i thought i was healthy. that's just the thing we try to stress is that early detection, early prevention. if you find out then there are ways you can combat diabetes without having to get on medication and do all the other stuff. unfortunately, it's not we'll wean you off medication as you go. it's -- you're going to eventually increase the medication as you go. some of the things they're trying to do in india is natural foods. eating, changing the diet. i've met doctors, even doctors in india who lost 40, 50, 60 pounds and were able to reverse the diabetes in a sense. and it brought down the cholesterol and, see, diabetes is a symptom. and diabetes brings liver disease. 80% of diabetics die from heart disease. the number one cause of amputation. number one cause of blindness. so it's a very serious disease that we really have to combat. it's a pandemic. >> obviously you know what you're talking about. you look great. i know you're doing something right there. >> you trying to flirt with me? >> am i? did it work? >> it did work. i'm easy. >> what is your next visit? >> well, i'm going to be here in atlanta. i'm doing a new radio show called "the healthy dish" working with corporate wellness now getting ready to get a new rv and tour the country and be the first rv to test people for diabetes all across the country. of course i'm working on a new cookbook with the american diabetes association. and we're just taking the world by storm here. >> you are. good to have you. >> thank you so much. >> thank you. >> all right. former president george w. bush made him america's top spy and he headed up the super secret national security agency to follow your every move. well now who is he watching? we'll find out in an exclusive interview. general michael hayden up next live. two american tourists and their guide were kidnapped today in egypt's sinai region. officials say the kidnappers want authorities to release a relative who is in detention in alexandria on drug charges. the americans have been targeted by kidnappers several times this year. in february two tourists were kidnapped and released. the same thing happened in june to two others. well, today we are learning just how bad off some of the most fragile countries are in the world. details were just released by the fund for peace and foreign policy magazine in what they called their failed states index. it's a snap shot of social, economic, and political development in every country on the planet. once again the most fragile countries are in africa with somalia and the democratic republic of the congo in the worst shape. they are followed by some familiar countries, sudan, afghanistan, haiti, yemen, iraq, and pakistan. experts say that their instability is having an impact on the rest of us. retired air force general michael hayden spent several years leading the national security agency then became america's top spy when president george w. bush made him the director of the cia. now he is working with the fragile states strategy group in washington. general hayden is also a foreign policy adviser to republican presidential candidate mitt romney. good to see you again, general. give us a sense -- first of all we are rebuilding iraq. we are nation building in afghanistan. why isn't the u.s. involved in some of these failed african nations? >> why aren't we involved? >> yes. >> actually there is some work being done by the united states. several years back we created a new command called africa command designed to help us focus some of our resources in this region not for combat purposes but for what we in the military call shaping and in the fund for peace we'd call it putting the right assistance in the right place at the right time. these failing states, states under stress aren't real security problems for us at some point in the future. >> which states are a security risk to the united states? >> well, frankly, i thought it most striking. if you look at the list you just it rated there, if you look at the top 13, five of them are safe havens for al qaeda. iraq, afghanistan, pakistan, somalia, and yemen. so there is a case right there as to why it's in the american national security interest to pay some attention to these circumstances in these kinds of states. >> what about haiti? what about sudan? is there a need for the united states to get involved in those failed states, in those countries that we do not have a significant presence? >> right. no, in sudan there are moral compelants and you've seen very prominent americans like george clooney and others trying to call attention to the human catastrophe going on there. haiti is closer to home. you have both a human dimension to the problem and also serious migration issues across the caribbean into the southern united states if haiti collapsed as a state. so this is all intertwined. our moral and geo strategic interests sometimes merge together. >> can we afford to ignore some of these countries? because clearly it looks like when you talk about societies that are braeaking down and cant feed their own people that there are security risks that develop as well. no. that's the point of the failed state index. look, as you mentioned i was the director of the cia and i have to tell you on most days the urgent, push the important off the page. an index like this gives us a moment or two to reflect on what's important and what we have to pay attention to even though it might not be physically, visibly crying out for attention right now. by the way, this does not always require massive investment. very often it's just a little prudence. a little investment in time and energy. a little coalition building. a little concern. use of what's now popularly described as smart power so that at some point later we aren't forced to use hard power to defend ourselves and our citizens. >> general, obviously someone who's been in the intelligence business as you have with your experience, you look at what is taking place in syria today. nearly 300 people killed just yesterday. do you believe that our administration needs to do more, is doing all it can in terms of collecting intelligence and trying to support the opposition and prevent the blood shed? >> suzanne, this looks like even from the outside this looks like a problem from hell. i don't think anyone in or out of the administration believes what it is we're doing now, is or will be sufficient. so i fear we and other members, responsible members of the international community are going to face some very difficult choices because right now we have stasis between the government and the opposition at a horrific level of violence and that just can't be sustained. >> what would you recommend if you were in that position today? >> well, first of all as an intelligence officer i'd get to know the opposition very, very well. who are these folks so we can have some reasonable confidence that what follows the assad regime isn't as bad or even worse. frankly, i'm a little troubled right now. this is a bit -- other groups in syria are still on the sideline. the kurds for one, the christians, the drus. that would trouble me that this has the earmarks of sectarian conflict in addition to being one between democrats and autocrats. caution is warranted here and over time i think we'll see ourselves and our friends take more action. >> do you think we should be militarily involved and have boots on the ground? any military? >> i would be very reluctant to recommend that. i would be a voice of caution if i were at that table in the situation room fully realizing circumstances may make our choices very few indeed and none of them being the kinds we would desire. >> general michael hayden thank you for your expertise and input. good seeing us an always. >> thank you. the report on the failed states pretty comprehensive covering every country. if you want to read the entire report on fund for peace it is on their website at fund for peace.org. doctors in cuba are fighting cholera infections and for the first time the cuban government allowed cameras inside the hospital where that outbreak started. about once a month. drive around town all the time doing errands and never ever have to fill up gas in the city. i very rarely put gas in my chevy volt. last time i was at a gas station was about...i would say... two months ago. the last time i went to the gas station must have been about three months ago. i go to the gas station such a small amount that i forget how to put gas in my car. ♪ here at the hutchison household. but one dark stormy evening... there were two things i could tell: she needed a good meal and a good family. so we gave her what our other cats love, purina cat chow complete. it's the best because it has something for all of our cats! and after a couple of weeks she was healthy, happy, and definitely part of the family. we're so lucky that lucy picked us. 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[ speaking in foreign language ] >> translator: this morning i was waiting for the bus and i threw up twice so i came running here. >> reporter: so far it's claimed at least three lives and sickened over 110 people with cholera, doctors say. many more people suffer from cases of severe diarrhea. for the first time the cuban government allowed cameras inside the hospitals at the epicenter of the outbreak. for doctors to tell their stories to cnn. >> translator: the first day five patients came and then eight. that's not normal that five people would come with the same symptoms. the most critical days were when there were 30 to 32 patients that arrived in a single day. >> reporter: cholera is a water borne disease that is usually not fatal if treated. it was believed to have been eradicated in cuba. cuban doctors say a hot and wet summer here set the stage for cholera's return. unusually heavy rainfall cluttered these people's farmlands and contaminated their wells. that is how the first outbreak of cholera in cuba in over a century began. to halt cholera's spread here the government has closed contaminated wells and is trucking in drinking waters and shuttered food stands that could spread the illness. temporarily banned swimming and fishing in waters that may be contaminated. this doctor treated patients with cholera in haiti and is part of a cuban medical mission there. he says doctors here are gaining the upper hand on cuba's much smaller cholera outbreak. >> translator: the number of cases is evidently dropping. that doesn't make us confident so much as make us intensify all of our preventative measures so that in the next few weeks we can stop the outbreak. >> reporter: an outbreak that this woman hopes she can avoid. after speaking to us she was admitted to the hospital. cholera tests could take seven to ten days to come back. a nerve-racking wait as cuba again battles a killer disease. >> patrick avin is joining us now from havana. the people in the capital, are they now worried this outbreak could spread there? >> reporter: you know, there is concern because you would think this outbreak which is in a very remote area, if it were to reach a much more populated area like havana where there are many foreign tourists who of course would then return to their home countries, that would just be a much, much bigger problem. cuban doctors are confident that's not going to happen. yesterday as we were driving back it's about a 14-hour drive to these affected areas. as we were coming back we saw several check points where they're stopping cars and buses and checking people for any symptoms to make sure they don't travel out of the outbreak areas. you know, as cuban doctors told us, until they reach every single person who has cholera in cuba the outbreak here will continue. >> and do they feel they have this under control now or is this something that they are still very concerned about? >> they're very concerned. they say the number of cases is dropping. the preventative measures. they're taking are showing real effects. they feel the tide has been turned. again, this disease kills millions of people every year. it's killed a relatively few number in cube an doctors here hope to keep it that way. >> thank you so much. appreciate it. tatoo checks becoming more common if you're applying for a visa in the united states. a man in mexico says his body art stopped him from visiting his own family.gh ♪ ♪ rocky, rocky mountain high ♪ ♪ all my exes live in texas ♪ ♪ born on the bayou [ female announcer ] the perfect song for everywhere can be downloaded almost anywhere. ♪ i'm back, back in the new york groove ♪ [ male announcer ] the nation's largest 4g network. covering 2,000 more 4g cities and towns than verizon. rethink possible. a man from mexico thought he was going to be able to visit his wife's family in texas, right? when goat to the border he was denied a visa. all because of his tatoo. that's right. take a look at this. it seems he had a tatoo on his back which law enforcement officials say drug carl members idolize. i want to bring in rafael romo who has been covering this. this sounds kind of strange really. because his wife is an american citizen and he's just trying to visit the family and he gets stopped by his tat. why? >> it should be a very straight forward case. he's married to an american citizen and has three american citizen children but when he goes to the appointment for his interview to get his residency based on the fact that he is married to an american citizen officials notice that he has this particular tatoo which is as you mentioned before "holy death" and that is a tatoo mexican drug cartels idolize. it's the tatoo that the criminal underworld in mexico -- it is very prevalent. based on that his application was denied. now we've spoken with his attorney and he also spoke with one of our affiliates. he says his client, 28 years old, a mechanic, is not a criminal and he just enjoys tatoo art. let's listen to what he had to say. >> our clients adamantly deny any gang affiliation. the tatoo is just a way to express themselves. but the council nevertheless is holding the case up while they investigate. >> we also reached out to the state department about this case. they don't generally go into specific individual case buss they said as law enforcement professionals have begun to better understand the relationship of certain tatoos to criminal gang membership more attention bhans paid to tatoos as possible indicators of gang affiliation during the visa process. so they're not saying he is a member of a gang but certainly it was one factor that was considered and he became disqualified. >> you let us know when you got an update on what happens to this guy because it is a fascinating case and we're out of time. >> absolutely. >> thank you. you know him for his songs but lenny kravitz has another side you might not know -- designer. 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[ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends july 31st. lenny kravetz, grammy winner, actor, all around cool guy but not well known for his other job, interior designer. alina cho talked to him about his creations and the future of his brand. ♪ ♪ >> reporter: lenny kravitz -- rock star, actor. >> i'm here to help you any way that i can. >> reporter: interior designer? why not? >> i was always into my environment, you know, even when i was a little kid. >> reporter: i sat down with kravitz at his palatial paris home, a place he's called home for seven years. >> there you go. >> reporter: the four-story mansion is filled with all of his favorite things -- art by warhol, a lucite piano, his four grammys, photos of his late mother actress rocksi roper, and a couch and chandelier he designed. >> it always made me feel good. it made the music sound better. you know, the lighting was right. everything was good. i think it goes hand in hand with everything that i do creatively. >> in 2003 he founded kravitz design. a product design company with a real office in new york with real workers and real projects. >> the same way i make my music. the same philosophy. i'm very detail oriented. if you put me in a room that's perfect except for one flaw my eye goes right to the flaw. it's kind of a sickness. my attention to detail. but that's the way i am. >> reporter: he's designed condos and hotel suites in miami, wall tiles, wall paper, and these chairs for cartel, something he called couture meets rock 'n' roll. >> does one help the other? >> yeah. when i'm doing music i need a break from music it doesn't mean i want to stop being creative. >> reporter: how do you keep it straight? talking about tile designs between gigs? >> absolutely. you have to. >> reporter: this is just the beginning. >> the plan is to make it a lifestyle brand. that's been my dream for this company. the same way you would see ralph lauren. when you say something gives them pleasure, the music, a couch, whatever it may be, it's a great gig to be able to share something. >> reporter: alina cho, cnn, paris. >> for alina's special back stage pass from paris tomorrow july 14th at 2:30 eastern. several stories caught our attention today. here in india these folk dancers performed during a travel and tourism fair in calcutta. participants from all over the world planned to travel across the country to show case their products and services to attract more tourists. a controversial issue brings out the clowns in the west bank. activists and palestinians dressed as clowns. they marched past israeli soldiers earlier today. they are protesting against israel's controversial barrier in the west bank near bethlehem. i'm suzanne malveaux. america's largest bank opens its books. it ain't pretty. also the late joe paterno speaking out in the wake of the penn state sex scandal. the outcry over teen usa's olympic uniforms. why one lawmaker wants them burned. let's get straight to it. in london soccer star john kerry has been found not guilty of racially abusing an opponent. the two had an exchange of words in a match last october. ter dion eyed they were racially motivated. the world needs airline pilots believe it or not. one of the biggest commercial jet companies says in the next 20 years the air travel industry will need almost a half million more trained up pilots. boeing sums it up this way. the global economy is growing fast and airlines are expanding

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