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Stocks Rally Ahead Of Fed Move; Remains Of 30 U.S. Troops Back Home; Warren Jeffs Gets Life In Prison; Deadly Violence In British Streets; Mobs Continue To Torch And Loot Throughout London

Aired August 09, 2011 - 13:00   ET

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

RANDI KAYE, CNN ANCHOR: Hi, Suzanne, thank you.

If we could forget what happened yesterday, today would look like a pretty great day on Wall Street. Instead, this bounce in the Dow is a relief. We're now up, looking at the big board there, about 170 points, but it still leaves us more than 400 points below where we started the week. The plunge, of course, attributed to the downgrade of U.S. government credit by Standard & Poor's. Yes, you got it, Standard & Poor, which attributes that decision in large part to the grid lock in Washington, the inability of President Obama and Congressional Republicans, yes, there we are right there, to get a meaningful handle on the deficits and the debt.

Now comes, of course, the Federal Reserve. We have Ben Bernanke right here, which has used every tool in its box to keep credit flowing and interest rates low in the wake of the great recession. At 2:15 Eastern, a little over an hour from now, the fed will tell us what if anything it plans to do in the wake of the Downgrade, the debt snafu, the European debt snafu and the global stock market freak-outs. In the meantime, I want to bring in our economic brain trust. Richard Quest is just outside the New York Stock Exchange, and Christine Romans in our New York studios.

Christine, I'd like to start with you. We just mentioned that the fed is going to speak here, or at least issue a statement, at about 2:15 today. What, if anything, can the fed do to help the situation that we're in right now?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, that's what we all want to know, right Randi? Because the fed has already kept interest rates at basically zero percent since all the way back in December of 2008. The fed, twice now, has embarked on big huge stimulus measures, buying back bonds, buying assets, that's about $2.9 trillion, keeping credit and money flowing best they can into the economy.

So, what can they do next beyond, say, what the fed says about being on guard and on alert for anything weakening in the economy and being ready to step in? How would they step in, when would they step in, what does the fed think about unemployment and inflation, those are the two things that the fed has a mandate to keep in check or to keep under control. So, that's what everyone wants to know. Also, one thing I would like to point out is that the fed -- this meeting was scheduled way before this latest period of unrest in the markets. A lot of people are saying the fed needs to step in and say something to soothe the markets, but others are saying the fed is too aggressive in its statement, it could spark concern in the markets that the fed is trying to target stock markets. So, you never know how to grade how the fed statement's going to play out in the markets beforehand -- Randi.

Christine, stay right there, I'll get back to you in just a second. I want to bring in Richard Quest. Richard, the Markets in Europe also bouncing back today. So is that it? Is it over? Are we in safe territory once again?

RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT: Well, if you accept that yesterday's fall was a fear-based fall, a waterfall if you like, that wasn't based on any economic fundamentals, then clearly the Market will start to drift back up again. It will regain some of the losses, But it won't regain all of them. It will keep trying to test those lows to see actually where the floor in the market currently is, and I would expect that what's going to happen.

So, the Market comes back up again, a bit like a bathtub, comes back up again, but the hole is still open and it's going to keep working out how much is going to drain down over the next few days and few weeks. Now, what could change the entire scenario, new economic data. Everybody's going to be looking at the numbers. Keep your eye on the numbers, because what you're looking for is a weakness in the economy that shows these share prices are not justified on the market.

One thing I will take issue with you on, Randi, if I may, you said the fed's running out of things that it can do. I suspect Ben Bernanke would disagree with you. He'd say -- he would say that he's always got a bit more queue (ph) in if he wanted to, he can always fiddle around and move the money around if he had to, and most important of all, he is the ultimate printer of money. He can flood Wall Street from here to kingdom come with money up the wazoo (ph), if necessary, to ensure the liquidity of the markets remain solid.

KAYE: All right, Richard, I'll give you that. Let me get back to Christine, now. Christine, yesterday, a lot of folks, as we watched the Market plunge, certainly afraid to even look at our 401(k), but put this in perspective for us, if you can.

ROMANS: OK. So, the Dow is now up, what, 165 points. That means we have only got 1,600 points more to go to get back to where we were just July 21st, that's depressing. So, let's put it into other perspective. When you look at percentage-wise in the Dow Jones industrial average, down 634 points yesterday, but percentage wise, that's five percent. That happens kind of often, you get big moves like that. It's not unprecedented, and in fact, that's not even in the top 20 worst percentage drops in history.

When you think of that battle Thursday in 1987, that black Thursday, look, yesterday is not even on that list of terrible, terrible days for the Dow. When you look back at 1987, that was a 22 percent drop, and that still holds the record for the first one ever. We're not anywhere near anything like that. OK, so for the S&P 500 -- so, since -- OK, let's just say for the summer. For the summer, the S&P 500 has corrected even more, it's down 16, 17, 18 percent. That is a big move in a short period of time and it hurts.

OK, let's step back and compare it with that awful March 2009, the S&P is up 64 percent, so it's all a matter of perspective. It's been a huge rally since those terrible days in the financial crisis, and a lot of people were waiting saying, oh, this market is prime for a big selloff and it happened vigorously and fast. Now it's fundamentals, I'm sure Richard would agree with me. The question the market is telling us is are we in a rut or recession? They're trying to figure that out, they're hoping it's a rut. And if it's a rut, well there's not much to be happy about in general, so that's why stocks have been having such a hard time.

KAYE: Richard, what do you say? Rut or recession?

QUEST: I'm on the fence at the moment, and I'll tell you why. The rut leads to a recession, because ultimately, if you have enough rutting, you end up with a full recession. We're not there yet, the economic fundamentals don't justify it. Christine talks about 1987, I was 25 on that day when the market crashed, that black Monday. I remember it as if it was yesterday when the market suddenly dropped more than 100 points in the last seconds of trade. I have never seen fear like I saw then, even 2008 didn't come close to 1987. We're a long way off those sort of levels of worry.

KAYE: Christine, what do you --

ROMANS: Randi and I weren't even born in 1987, so we'll take your word for it.

KAYE: Oh, I don't know about that but thank you. Christine, what do you think investors hope the fed does do today?

ROMANS: I think the investors hope for a very frank assessment of unemployment and the pace of the economic recovery, and they want to know that the fed stands ready to intervene, if necessary, to put more, as Richard says, more quick chewy into the system to flood Wall Street with dollars up the wazoo, I think is what he said, but also not to frighten anyone into thinking that we are definitely headed for a recession. They would prefer it's a rut, not a recession, and that the fed stands ready to do anything to ameliorate it.

KAYE: All right. Christine Romans, Richard Quest, thank you both. We'll keep an eye on wazoo on Wall Street. Don't you worry.

Another story we're following this hour. The American troops killed in the deadliest day of the Afghan war have come home. The remains of the 30 troops, including 22 Navy S.E.A.L.s, arrived at Dover Air Force Base in Delaware this morning, some are seen in these pictures here. Families of the victims traveled to Dover for the somber transfer ceremony.

President Obama, defense secretary Leon Panetta, and joint chiefs of staff chairman Admiral Mike Mullen were also there. Also included, the remains of seven Afghan troops and a civilian interpreter. Those remains will be returned to Afghanistan once identifications can be made. All were killed, you may recall, when their helicopter crashed in central Afghanistan on Saturday.

We want to tell you more about one of the victims and his 10- year-old son. Brian Nichols was a U.S. army pilot from Kansas who flew Chinook helicopters. He can be seen on the far left in this photo here. When his son Braden Nichols learned about his father's death, he couldn't understand why the Navy S.E.A.L.s who were also killed were getting so much media attention so he sent us this photo in an iReport and this request, quote, "My father was one of the 30 U.S. soldiers killed in Afghanistan with the S.E.A.L.s rescue mission. My father was the pilot of the Chinook. I have seen other pictures of victims from this deadly mission and wish you would include a picture of my father. He is the farthest to the left."

Braden, we all want to thank you for sending the picture of your dad, we're very sorry for your loss. Braden's aunt, Sue Keller, says Braden was his father's only son and that they were very close. He was counting the days, in fact, until his dad came home. There were just nine left before Brian Nichols was to fly home to Kansas city, nine days left for a two-week leave.

It only took 30 minutes for a Texas jury to decide the fate of Warren Jeffs. After the half hour deliberation, the FLDS self- proclaimed prophet was sentenced to life in prison, plus a $10,000 fine. Jeffs was found guilty on one count of aggravated sexual assault and another count of sexual assault, both involving underage girls. His sentence was the maximum possible.

London police say the violence on the streets is the worst they have ever seen. Now the British prime minister is promising to put thousands more officers on the street. So, will that end the crisis? We'll take you to London live next.

(COMMERCIAL BREAK)

KAYE: The first riot-related death has been reported in London since the violence broke out Saturday night. A 26-year-old man who was found with a gunshot wound to the head in Croydon, which is in south London, on Monday night has died, according to police. Now some 16,000 police officers are on the streets of London as tensions have now turned deadly between groups of young people and police. Police say the riots in London Monday night were the worst in current memory. For the third straight night, people set buildings on fire, looted stores and attacked police with bottles and fireworks. Hundreds have been arrested.

This all started last week, after 29-year-old Mark Duggan was shot and killed by London police. Violence first broke out over the weekend in the district of Tottenham in north London and has now spread to three major British cities.

CNN's Atika Shubert joins us now from London. Atika, some are saying this rioting is all because of high unemployment and benefit cuts, but then there are the others who are saying that it could be racially motivated because the man police killed last week was black. What are you hearing in terms of race being behind this?

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: I'm hearing a lot of different things, and I think it's very complicated, there are a lot of different factors to this. Clearly, what we know is that the trigger was the killing of Mark Duggan by local police. In fact, there's just been some news on that that came out. Basically, they found there was a firearm on the scene that did not belong to police, but it didn't fire any bullets.

Originally, police said there was an exchange of gunfire in which he was killed, that's now being called into question. And it just goes to show that the family has -- was very angry about his death but they held a very peaceful protest, it then degenerated into a riot. Now, that's what happened on Saturday night. What people are asking is then how did it become riots on Sunday night and then a full-blown looting -- sporadic looting and rioting on Monday night?

So, I don't think there's any one particular answer. We do know the shooting triggered it, but it does seem perhaps the recession is hitting people very hard. Benefit cuts in particular are being felt very sharply, cutting a lot of the youth clubs and other activities that kept a lot of teenagers off the streets. And a lot of these, unfortunately, packs of teens seem to have basically jumped in with the looting, vandalizing local shops like this grocery store behind me that went up in flames last night, and that and what seems to be a whole host of different factors and just generally, a venting of anger by some of these angry youths.

KAYE: And some are calling this the worst violent outbreak since the race riots back in 1981. I mean, can they really be compared?

SHUBERT: I think they can definitely be compared. This is exactly what people are saying that it reminds them. I just actually spoke to a former police officer who was in Tottenham during some of those disturbances, those riots in the '80s. He said it's like deja vu. He remembers seeing some of these exact same scenes, running battles between some of those teenagers, at the time, and police. He says it's a lot of the same thing.

Again, some of the same situations that we were seeing in terms of context, a recession, economically speaking, people were really doing hard, unemployment was high, benefits being cut across the board. We're seeing all of that being repeated again and that might be one reason we're seeing the violence again.

KAYE: What about this increased police presence? Will that help the situation at all, do you think?

SHUBERT: I think it's probably going to help certainly in certain areas. A lot of people I have been speaking to both Eastland, and South, North, and here now in the West say last night, the police were just stretched too thin. There were maybe 30 policemen and 150 of these looters and rioters. So having more police will help. But at this point, it's so widespread, it's much more difficult to get it under control.

A lot of people are asking if there are going to be more forceful measures in place, water cannons, tear gas, maybe even a curfew in some areas. Those things have not been announced yet. But if things don't get under control tonight, you can guarantee there will be demands for these things tomorrow.

KAYE: From the looks of it, though, even if they did put a curfew in place, who knows if it would work. Atika Shubert in London, thank you.

Are they the new Bonnie and Clyde? The FBI is in hot pursuit of a sister and two brothers. They are considered very well armed and very dangerous. We'll check it out next.

(COMMERCIAL BREAK)

KAYE: Well, the hunt continues for three siblings accused in a two-state crime spree. Lee Grace Dougherty and her brothers Dylan and Ryan, all in their 20s, seen here, are wanted for armed robbery and attempted murder. Police say they robbed a bank in Georgia with an AK-47 assault rifle, then opened fire on a police car in Florida. The officer was unhurt but authorities are worried.

(BEGIN VIDEO CLIP)

You know, these people out there, they are extremely dangerous and they are street-smart. They know what they're doing. The biggest thing we're afraid of right now is they have three options. One is that we hope they turn themselves in. That is what -- that is what we hope ends this. The second thing is right now, they did the bank robbery, so they got a little bit of money but we know they will need some more money to survive. Right now, we think they may go out and commit another felony. The third thing is, they may end this in a battle with law enforcement, but we have a lot of resources and I promise, we will win that battle.

(END VIDEO CLIP)

KAYE: All three siblings have criminal records. Ryan Dougherty has 14 felony arrests since 2007. And he recently was sentenced to 10 years probation for sending harmful information to a minor.

After nearly 29 hours in the water endurance swimmer Diana Nyad abandoned her attempt to make history today. The 61-year-old arrived in Key West, Florida aboard a boat this morning after asthma and shoulder pain forced her to call it quits about halfway through the 103-mile swim from Cuba to Florida.

(BEGIN VIDEOTAPE)

DIANA NYAD, ENDURANCE SWIMMER: It was about midnight last night, you know, they always use that phrase, Suzanne, mind over matter. And this sport proves it. You push beyond what the human limit is, all the time. But last night at midnight, I was trembling, the 11 hours of asthma had taken so much from my body that I was absolutely spent. And when I found out it would be not only to swim at midnight through the rest of the night, through this entire day, through this entire night coming up, I just knew that it wasn't mind over matter anymore. I was absolutely spent.

(END VIDEO CLIP)

KAYE: That was Nyad speaking with my colleague, Suzanne Malveaux, earlier today. Despite her disappointment, Nyad said she does not see herself attempting the swim again.

For much more on Diana's story, tune in to Sanjay Gupta's hour- long special next month, Saturday, September 17th at 8:00 o'clock, Eastern, right here on CNN.

Tiger Woods is back on the prowl, roaming the golf course once again but it sounds like it's his former caddy who is actually doing most of the growling. We'll check it out, next.

(COMMERCIAL BREAK)

KAYE: Tiger Woods is ready to tee it up in golf's fourth and final major tournament of the year. The GPA Championship starts Thursday on sister station TNT. Tiger finished 37th in this past weekend's tournament, not a terrible outcome for someone who has been out with an injury for a few months. But really, more people may have been focused on Tiger's former caddie.

Take a look here. That's Steve Williams on the right. He and his new boss had a really good weekend. Adam Scott won the Bridgestone Invitational. Williams carried the bag, never even swung a club, but he called it his greatest win ever.

(BEGIN VIDEO CLIP)

STEVE WILLIAMS, CADDIE FOR ADAM SCOTT: It's the most satisfying win I've ever had. No two ways about it. I'm not denying that. I mean, I was absolutely shocked that I got the boot, to be honest with you. I carried for the guy for 13 years, I was incredibly loyal to the guy and I got short-shifted. Very disappointed.

(END VIDEO CLIP)

KAYE: That's coming from a guy who was at Tiger's side when he won 13 majors. He was fired by Woods last month. Turner Sports' Jim Huber joins me now from the Atlanta Athletic Club, site of this week's PGA Championship.

Hi, there, Jim, you heard what Steve Williams said. Did he sound a little bitter to you?

JIM HUBER, TURNER SPORTS: Just a little? You think? Yeah, I think he was bitter. I think he's very upset at the way he was treated. I think that that particular divorce on Tiger's part didn't go as anybody planned. And so therefore, it was Steve Williams' chance to get him back.

It was so rare to even see a caddie on camera. That just doesn't happen in these days and times. Caddies are treated like second class citizens basically. They bring up the rear. So to have Steve Williams go on camera with CBS immediately following the championship, and sort of overshadow what accomplishment his man achieved was really rare, and kind of bizarre and very disappointing, I think.

KAYE: It's almost like he didn't have much of a choice, though, in a way. He was mobbed by reporters. But do you think he regrets coming out and speaking that way?

HUBER: Well, we caught up with him just a little while ago. He wouldn't go on camera but he did apologize. He said he was sorry if he offended anybody, that he was caught up in the emotion of the moment. And that he was happy for his man, Adam Scott, and looked forward to playing this week at the Atlanta Athletic Club. Period, paragraph, end of story, hopefully. But his saga won't be the end of story. Tiger Woods has a press conference in the morning and we'll hear from him for the first time on this issue. It's not going to be finished.

KAYE: Yeah. Speaking of Tiger, how's he looking these days? Was he a bit rusty over the weekend?

HUBER: Randi, he was rusty. And rightfully so. He hadn't played in a good long time. His putter didn't work very well. His driver certainly didn't work. Those two, you know, that is not a good sign for any golfer. When you come to a major championship like this with the rough as high as it is, the premium is on driving it in the middle of the fairway and hitting greens at the right position, where you don't have to three and four putt, which is potential on these greens. So he's got to have both of those clubs in his bag working and coming in here, they're not.

KAYE: How is his attitude on the course these days?

HUBER: Well, I think his attitude is sort of like let's see what I've got. I don't think he got as upset at himself as he might have in times past, because I don't think he was expecting a whole lot of what he had. I think that he knew he was going to be rusty. I think he knew he had to work on some things. And the fact that the Bridgestone was not a cut tournament, in other words, he was guaranteed four days of practice, basically, it gave him a chance to work on it coming into this major.

KAYE: Speaking of caddies, Tiger has a new caddie, obviously since he got rid of his old one, who is like a high school buddy of his, right, with not much experience caddying at all?

HUBER: Brian Bell is his name. Yeah. Old high school and college buddy. They get along pretty well but I think Tiger does his own clubs, reads his own greens, and I don't think he relies on Brian for much more than just a pat on the back and to carry his bag.

KAYE: You think Tiger will be the big story of the PGA? HUBER: Well, I think he's a big story whenever he steps foot on a golf course. Unfortunately, there are an awful lot of other players who should be getting the limelight here who will sort of be left in his dust as it always happens. There's an awful lot of good young players who have a great chance of winning this championship and I don't think Tiger stands much of a chance, to be honest with you.

KAYE: All right. You will have a prime seat. We know that, given your location today. Jim Huber, nice to see you. Thank you.

HUBER: Nice to see you, Randi. Thank you.

KAYE: Polygamous leader Warren Jeffs just found out how much time he will spend in jail after being convicted of sexual assault on a child. The sentence right after the break.

(COMMERCIAL BREAK)

KAYE: About half past the hour.

Let's take a look at some of the headlines and other news you may have missed.

The Dow is up right now 167 points, as investors await possible action by the Federal Reserve. Today's previously scheduled Fed meeting takes on new urgency after yesterday's stock market plunge in the wake of the U.S. government's credit downgrade. We're expecting the announcement from the Federal Reserve at 2:15 Eastern, just about 45 minutes from now. Full coverage for you next hour.

President Obama was on hand today as the American troops killed in the deadliest day of the Afghan war came home. The remains of the 30 troops, including 22 Navy SEALs killed in a helicopter crash in Afghanistan, arrived at Dover Air Force Base in Delaware earlier this morning.

The president, Defense Secretary Leon Panetta and Joint Chiefs of Staff Chairman Admiral Mike Mullen were there for the somber transfer ceremony, along with the families of the fallen troops.

It only took 30 minutes for a Texas jury to decide the fate of Warren Jeffs. After the half-hour deliberation, the FLDS self- proclaimed prophet was sentenced to life in prison, plus a $10,000 fine. Jeffs was found guilty on one count of aggravated sexual assault and another count of sexual assault, both involving underaged girls. His sentence was the maximum possible.

One person has been killed and more than 500 have been arrested in three days of rioting in Britain. British Prime Minister David Cameron says he's putting 16,000 officers on the streets of London tonight to deter protesters, arsonists and looters. The riots were sparked by the shooting death of a 29-year-old man in London last week. Police say 44 police officers were injured just last night.

Pop singer Gavin DeGraw was rushed to a New York City hospital early Monday after being assaulted on the Lower East Side of New York City. "The New York Post" reports DeGraw has just left just a group of friends when he was attacked around 4:00 a.m. He suffered a broken nose and cuts on his face. Sources told "The Post" the attack did not appear to be a robbery.

The mysterious orange goo that washed up on the shores of an Alaskan village last week has finally been identified. According to a National Oceanic and Atmospheric Administration lab, the substance is a mass of microscopic invertebrate eggs. Yes. The lab believes the eggs could possibly be from a small crustacean, but more testing will be done to determine the species and to see if the eggs are toxic at all to humans.

A tragic story continues to unfold in the Horn of Africa. Dr. Sanjay Gupta reports from a refugee camp where thousands are fighting for their lives.

We will back with that story.

(COMMERCIAL BREAK)

KAYE: President Obama has authorized more U.S. aid for people starving in the Horn of Africa. The U.S. will spend an additional $105 million to pay for food, water, shelter, health, and sanitation assistance. Tens of thousands of people are huddled in a refugee camp in Kenya.

Here's what it looks like from above.

Our chief medical correspondent, Dr. Sanjay Gupta, is there. He has a report on the most vulnerable refugees in the camp, the children.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: And, Randi, these children are so resilient as well. But the question still remain, how do you take care of so many people, hundreds of thousands of people, in the largest refugee camp in the world? It is not easy.

But we give you the idea through the story of a father's love for his boys.

(voice-over): What you're looking at may best be described as the most desperate place on earth, vulnerable children, thick with misery.

(on camera): You can tell right away when you see a little baby here. You can take a look here, the baby's fontanel, it's so sunken in. This is what happens when they have no food, no water so dehydrated.

(voice-over): Basic, basic necessities so hard to come by. Dust and starvation nearly everywhere you look.

(on camera): This is also what happens when you're at the world's largest refugee camp, all these folks waiting to see one doctor over here.

(voice-over): As you look at these images, consider this simple fact. These are the lucky ones, lucky because they made it here at all. This family of five made it out of Somalia just yesterday.

(on camera): Came out here to the middle of the desert to give you a real idea of what this family went through. They walked for 30 days and 30 nights. Primarily walking at night because it was cooler carrying those three kids, sometime carrying a kid, going back, getting another kid and then just doing this over and over again in the desert. Thirty nights' worth, they crossed the border and then they get robbed. Bandits take what little possessions they actually have.

(voice-over): But the bandits didn't take this father's dream and his drive to keep his kids alive. It's not going to be easy.

(on camera): This is another thing you see quite a bit. This child obviously, 3 months old, looking very listless. Just not very active at all. Look at his breathing specifically. He is breathing with his abdomen, not so much with his chest, which is something very tiring for a baby. He also has whooping cough, pertussis because the child was never vaccinated either.

He will need a hospital, oxygen, antibiotics, and yes, food and water. All of it may come too late. So painful to realize that every single one of his ailments could have been prevented. Unfortunately, though, that hardly ever happens in the most desperate places on Earth.

(on camera): And, Randi, the numbers continue to increase. They expect here 2,000 people a day to still be coming into these camps, those numbers obviously increasing. In some way, there have been some signs of improvement. They have more resources in some of these camps. There is more of a structure to some of these camps as well.

But the real key from talking to people on the ground is to be able to take some of these resources, put them directly in Somalia around the people who need them the most to try and avoid them having to make these incredibly arduous treks -- Randi, back to you.

(END VIDEOTAPE)

KAYE: So hard to see those children suffering.

Sanjay, thank you.

And you can see much more from Sanjay Gupta and Anderson Cooper reporting live from Somalia tonight. Watch "A.C. 360" at its new time. That's 8:00 p.m. Eastern right here on CNN.

To find out how you can make a difference to help victims of the famine in East Africa, visit our "Impact Your World" page. You can find that at CNN.com/impact.

After the break, a lifesaving food that's become an important weapon in the fight against famine. It's our "Big I" today. And we will show it to you.

(COMMERCIAL BREAK)

KAYE: So it has a funny-sounding name, but it's saving lives in Somalia and Kenya.

Plumpy Nut is a ready-to-use therapeutic food designed to combat malnutrition. And it is the topic of today's "Big I."

It's made with a peanut-based paste, sugar, vegetable fat and skim milk powder enriched with vitamins and minerals. And it is playing a really important role in famine-stricken Horn of Africa.

Omar Taha is the director of international development for Nutriset, which developed Plumpy'nut. He joins us now from Paris.

Omar, let's start with a little background here, if you would. When was Plumpy'nut first developed?

OMAR TAHA, DIRECTOR OF INTERNATIONAL DEVELOPMENT, NUTRISET: Plumpy'nut was actually initially developed in 1996 by Michel Lescanne and Andre Briend of the Institute for Research and Development in Paris, France.

KAYE: I ran through the ingredients. Can you give us an idea of how nutritious this is and how it could help these starving people, especially the children?

TAHA: Well, the fact that it uses a fat-based matrix to deliver the essential vitamins and minerals that these children that are suffering from severe acute malnutrition, it's proven to be lifesaving, as you very well know, as you have stated, and it has a little bit above a 90 percent recovery rate.

I think the main aspect is what was happening before the integration of Plumpy'nut into humanitarian programs. We had high rates of infant mortality because the hospital was the only place where children could be treated, but, because it was so far away or it cost so much to get to, or because children had to be admitted as in- patients, all these served as disincentives for mothers or caregivers to present children. So they often presented the kids when the situation was too dire and irreversible.

And so we had lots of deaths for -- for an unnecessary and preventable reason.

KAYE: Yes.

And besides obviously the nutritional value, what would you say are some of the other advantages to having Plumpy'nut there on the ground?

TAHA: Well, Plumpy'nut enables -- instead of being treated in the hospital, those children with -- without medical complications, those children that are only suffering from malnutrition, they can be treated in their communities. So, right away, you're talking about increased coverage, enormous. The number of kids you can treat relative to what we were treating before is immense.

KAYE: And it's easy to store. I mean, that was one of the things I was getting at. It's not something that has to be refrigerated, because you are certainly not going to have that.

TAHA: (AUDIO GAP) in the hospital, a fortified milk needs to be mixed in a sterile environment. The Plumpy Nut uses the exact same formula as the milk that is given at the hospital level. But has a two-year shelf life, doesn't have to be heated or reconstituted before it's given to the child. It can be eaten directly from the sashey (ph).

KAYE: And we said this is peanut based. So, is there any risk with all the talk of peanut allergies these days, or do the benefits outweigh any of that risk?

TAHA: In fact, this is a question that comes up quite often. The peanut allergy is not something, it's not a phenomenon that we have come across in the developing world. I'm not saying it doesn't exist, but that's something that we typically find in Europe, North America and other developed countries. So, it's not something we have seen at all.

But we do get that question quite frequently. It is a good one.

KAYE: What does it taste like? Just curious.

TAHA: It tastes like peanut butter cookie dough. It's probably the best example I can give you. So, the children do love it and so do the caregivers because it's easy to administer and they know their children recover quite quickly from it. Typically a child that is severely wasted takes Plumpy Nut for four to six weeks and is fully recovered.

So, the children that you're seeing on your broadcast there, they are literally running around smiling, just after four to six weeks of treatment on this type of product.

KAYE: Well, we would certainly prefer to see those images over the ones we have been seeing on CNN for the last few weeks.

What about the situations other than famine does this come in handy?

TAHA: Absolutely. Any situation where you have, you know, whether it's post-conflict or post-disaster, where you have civil strife, when you have refugees that are internally displaced persons, people don't have access to their fields, they can't harvest, there is food insecurity -- all of these types of situations, you will typically find Plumpy Nut and other products.

It's important to note that Plumpy Nut was the first of many in a similar range of products that was produced. The other ones are for less severe cases of malnutrition. But they are all spawned by the success of the product Plumpy Nut.

KAYE: Omar Taha, thank you so much for your time. And great work with this Plumpy Nut.

TAHA: Thank you for having me.

KAYE: And you can give donations to make more Plumpy Nut available in east Africa at globalgiving.org. And for more about this and other "Big I" stories, you can check out my Facebook page, Facebook.com/RandiKayeCNN.

Hate boiling over. A new killing caught on tape is now bringing back troubling visions of Mississippi's racially charged past.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Absolutely. There's no doubt they were looking for a black victim to assault. And even kill.

(END VIDEO CLIP)

KAYE: We've got the disturbing details and the surveillance tape next.

(COMMERCIAL BREAK)

KAYE: White teens looking for trouble. Prosecutors in Mississppi say it was a deadly mix of hate and racism with one unsuspecting black man in the wrong place at the wrong time.

CNN special investigations unit correspondent Drew Griffin has the troubling story.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT CORRESOPNDENT (voice-over): He is just 18 years old. Facing a possible double life sentence with a senseless murder of a man he never knew, Darryl DedmOn is thin, short with straggly blond hair, accused of leading a group of white teenage revelers on a mission to find and beat up anyone who is black.

(on camera): They discussed, let's go get -- I mean, let's get honest here. Let's get a (EXPLETIVE DELETED), right?

ROBERT SCHULER SMITH, HINDS COUNTY, MISSISSIPPI DISTRICT ATTORNEY: That's exactly what it will show.

GRIFFIN: Heinz County district attorney Robert Schuller Smith says the evidence and witness accounts tell a story of a crime that would seem right to come out of Mississippi's troubled past. On June 26, a group of white teens, seven in all leaving an all-night party in the white, middle-class enclave of Rankinc County, Mississippi in search of a black person to, quote, "mess with."

(on camera): Out of hate? SMITH: Out of hate. That's exactly --

GRIFFIN: No doubt in your mind this was a racially motivated. Hate motivated. Let's kill a black guy crime.

SMITH: Absolutely. They were looking for a black victim to assault. And even kill in this instance.

GRIFFIN (voice-over): They drove 16 miles on a freeway heading west. At 5:00 a.m. that Sunday morning, the teens in two vehicles took the Ellis Avenue off ramp leading to a predominantly black section of Jackson. Just as they were exiting, an unsuspecting 49- year-old auto worker named James Craig Anderson was standing by his car at this local motel. And he was black.

(on camera): So literally, they found the first black person they could find and that black person was in this parking lot?

SMITH: Well, yes. This is the first business that you get to coming off of the highway, and so that was the first person that apparently was out here and vulnerable.

GRIFFIN (voice-over): According to witness statements, at first James Craig Anderson was beaten and taunted with racial slurs. Surveillance video shows white teens going back and forth in what prosecutors say was a continuous beating of the victim. As one of the teens walks back to the cars after beating Anderson, he pumps his fist in the air and shouts "white power," according to a motel security guard.

Then some of the teens got in the white SUV and drove away, leaving Anderson beaten and lying on the ground.

(on camera): But Darryl Dedmon apparently wasn't through. He had two girls in his truck as he was leaving this parking lot. A big F 250 pickup truck. James Craig Anderson, the man who was beaten almost to a pulp, was stumbling down this curb.

That's when police say Darryl Dedmon hit the gas, jumped the curb, and ran right over his victim. Smashing him.

What he didn't know was the entire episode was being caught on a surveillance camera on the corner of this hotel.

(voice-over): This is what was caught on that tape obtained exclusively by CNN. We warn you, it is disturbing. A video capturing what prosecutor Robert Schuler Smith says is pure racial hatred and murder.

(END VIDEOTAPE)

KAYE: And as Drew said, we do want to warn you that videotape that Drew was talking about is disturbing. We will have it for you next.

Plus, we'll tell you what the family of the victim is doing now in the aftermath.

(COMMERCIAL BREAK)

KAYE: Now back to our story about a troubling attack in Mississippi. The prosecutor in the case calls it a hate crime, pure and simple. White teens on the prowl for a black man, looking for blood, and they got it.

We have to warn you that the video you're about to see is disturbing. Here's CNN's special investigation's correspondent Drew Griffin with the rest of that story.

(BEGIN VIDEOTAPE)

GRIFFIN (voice-over): Here you see James Craig Anderson in a hotel parking lot as he first comes into view in the lower right corner of the screen. This is after he was beaten according to law enforcement officials. He staggers into the headlights of Mr. Dedmon's truck. The truck backs up and surges forward suddenly, running right over the defenseless man. Take a look again as the approaching headlights glow on Anderson's shirt, then disappears under the truck.

According to police, Dedmon, with two teenage girls as his passengers, drove to a local McDonald's, meeting up with the rest of the group. There, according to witnesses interviewed by police, he said "I ran that (EXPLETIVE DELETED) over."

SMITH: He was not remorseful. He was laughing. Laughing about the killing.

GRIFFIN: Later that morning, James Craig Anderson's family learned their 49-year-old brother and son died from what they thought was a hit and run. Only later when witness statements were taken did they learn the real horror. Winston Thompson is the family's attorney.

WINSTON THOMPSON, ANDERSON FAMILY ATTORNEY: As the facts developed, it went from a bad situation to much, much, much worse. That this could -- at that time they were being told this could have possibly been a racially motivated killing.

GRIFFIN (on camera): Now, it appears there is no doubt.

THOMPSON: Still in shock. Still in disbelief.

GRIFFIN (voice-over): Calls to Darryl Dedmon's attorney have gone unanswered. During a bond hearing, that attorney told the court he saw nothing to back up the racial allegations. At Dedmon's home, a girl who answered the door pretended not to know him, though the pickup truck he allegedly used as a murder weapon sticks out of the family's garage. Police say they returned it after the vehicle was processed.

A second teen, 18-year-old John Aaron Rice, has been charged with simple assault for his part in the beating. His attorney also did not return calls.

Neither teen has entered a plea. The other teens in the group have not been charged.

James Craig Anderson's family has decided to remain silent for now. Trying to come to grips with a crime they thought was in Mississippi's past. The murder of a man just because he was black.

Drew Griffin, CNN, Jackson, Mississippi.

(END VIDEOTAPE)

KAYE: And for more on this story at that exclusive video from the hotel surveillance camera, be sure to log onto our Web site at CNN.com.