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28 Missing in Cruise Ship Disaster; Ship Tragedy Dominates Headlines; Fears of $5 Gas This Summer; Romney Rivals Target Frontrunner; Captain Blames Technical Failure; Cruise Ship Captain Faces Judge; Scalpers Fuel Apple Frenzy in China; Stocks Set to Rally; Italian Judge: Captain Stays in Jail; EPA: Job's Killer or People Saver

Aired January 17, 2012 - 08:59   ET

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

KYRA PHILLIPS, CNN ANCHOR: Good morning, everyone. We start off this hour off the coast of Italy. A new infrared video of that wrecked cruise liner. Passengers line up trying to get to safety. And as the camera pans down, you can actually see a gigantic rift right there in the ship's side.

Now here's the view from underwater as crews smashed windows, swim through the hallways. And they've already recovered one black box that we're told. And the Coast Guard is now saying it knows where a second data recorder is.

Now does this look like a technical failure to you? Because that's how Captain Francesco Schettino described the disaster according to port authority transcripts reported in an Italian newspaper.

Here's part of the conversation. Port authority, Concordia, we ask you if all is well there. Concord, all is well. It's only a technical failure. Port authority, how many people are on board? Schettino, 200, 300. Port authority, how come so few people? Are you on board? Schettino, no, I'm not on board because the ship is keeling. We've abandoned it. Port authority, what? You've abandoned the ship? Schettino, no. What abandon? I'm here.

Well, a judge questions the captain at a closed hearing today. He's under arrest and he could be charged with manslaughter.

Dan Rivers is live on the scene once again for us there in Italy.

Dan, six people are dead, 28 are missing, including two Americans, and crews are still searching for survivors, right?

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: That's absolutely right, yes. It's getting along four days since this happened here in Italy. You can see the wreck right behind me. There's a lot of activity again there at the moment. So a lot of ships around. And the divers, again, are making their way on board.

This morning they've been actually using explosives to blast their way, as you mentioned, through into parts of the ship that they couldn't get access to before. Five different explosions have been echoing across this island this morning as they continue their work. And basically their message is we will not stop until we have accounted for everyone.

So until they have either recovered bodies or, you know, fingers crossed, found any more survivors, they're going to continue this operation. In addition to that, there is of course a concern about the environment. There's more than 2,000 tons of fuel aboard this ship. Amazingly so far none seems to have spilled into these pristine waters.

But they've already started putting booms. I don't know if you can see but around the coast line there, there's kind of line of orange booms now that they put in place. That's to protect the shore if the worst case happens and they were to get worse and the ship starts leaking fuel.

PHILLIPS: All right, Dan Rivers, we'll continue to follow the story with you throughout the morning.

And you know this tragedy is definitely a talker around the world because so many of us have taken cruises.

Zain Verjee is in London.

What are you hearing this morning, Zain?

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Good morning to you, Kyra. Let's go to the newspapers. There's a lot of concern.

"Les Echos" in France has this headline, Kyra. They say this, "The debate about safety on board cruise ships has just begun." It goes on to add, "A maritime union representative noticed the diverse nationalities of the Costa Concordia crew and also significant question, how could all of these crew members communicate with each other and their passengers effectively? Was this one of the main problems?"

"The Wall Street Journal" in Europe has this headline, "Cruise tragedy takes its toll on Carnival." It says, "Images of the Costa Concordia sinking off the Italian coast are unlikely to fade quickly from the public mind. For investors, the 16 percent stock price drop Monday in London in the cruise ship's parent company, Carnival, is a grim reminder that there are perils at sea."

Finally, Kyra, check out "The Daily Telegraph" here in the U.K. It has this headline. "So will this sink the cruise industry?" It says, "If the accident was not due to a fault of the ship but rather a serious error on the part of the captain, the cruise industry will be breathing a collective sigh of relief. All said, cruising whether on a cruise ship or a liner is the safest form of travel there is."

So really grabbing all the international headlines around the world, Kyra. Back to you.

PHILLIPS: All right. Zain Verjee out of London for us. Zain, thanks. Four days to go until South Carolina votes in the Republican presidential primary. Five GOP candidates are still standing and the tone of the race, well, it's getting pretty intense. Fresh off a fiery debate Rick Santorum holding a national security town hall on the USS Yorktown in Mt. Pleasant this hour, while Mitt Romney holds a rally in Florence.

Now all the candidates gunning for Mitt Romney. The clear target of last night's debate. He's taking flak on everything from his super PAC ads to how much he pays the taxman.

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: It would be nice if Governor Romney would exercise leadership on his former staff and his major donors to take falsehoods off the air.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: But if we're talking about super PAC ads that are inaccurate, Mr. Speaker, you have a super PAC ad that attacks --

GINGRICH: And I've --

ROMNEY: That attacks me. Now just hold on. It attacks me. It's probably the biggest hoax since Bigfoot.

RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: Governor Romney's super PAC has put on ads out there suggesting that I voted to allow felons to be able to vote from prison.

ROMNEY: First of all, as you know, the PACs that run ads on various candidates as we unfortunately know in this --

SANTORUM: I'm still looking for an answer to the question first.

(END VIDEO CLIP)

PHILLIPS: That's good. Straight to CNN political editor, Paul Steinhauser, is live in Charleston for us.

So, Paul, did any of those attacks on Romney draw any blood?

PAUL STEINHAUSER, CNN POLITICAL DIRECTOR: You know, watching the debate last night, to me, Kyra, it seemed like the first time that Mitt Romney was a little uncomfortable since our debate back in Las Vergas back in October. I think Rick Santorum with that exchange over the super PACs and whether felons, former felons should be able to vote, kind of put Romney on the spot, a little out of his game for the first time in a while.

Newt Gingrich also, as you saw from those clips, really going after Mitt Romney as well. Listen, Gingrich, Santorum, both of them here in South Carolina fighting to be the conservative alternative to Mitt Romney. And they both had big rights. Especially Gingrich, Kyra. We know Newt Gingrich, Mitt Gingrich is a -- Newt Gingrich, not Mitt Gingrich. Newt Gingrich is a very good debater and he showed it again last night.

Romney did survive though. Yes, he was knocked off his game a little bit. Made a little uncomfortable especially by Santorum. But he did survive in the end.

Kyra, and they get to do it again Thursday night right behind me. It's the North Charleston Coliseum. A CNN debate. John King, the moderator. So the last chance for these candidates to go after Mitt Romney, to try to knock him off his game before Saturday's primary -- Kyra.

PHILLIPS: I'll tell you what, we've had so many debates, Paul, I can't even keep track of how many we've had so far.

(LAUGHTER)

PHILLIPS: Hey, look, Rick Perry says that he wants to see just how much Mitt Romney is worth and he brought it up again. Take a listen.

(BEGIN VIDEO CLIP)

GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: Mitt, we need for you to release your income tax so the people of this country can see how you made your money.

(END VIDEO CLIP)

PHILLIPS: All right. Well, what do you think? Any chance that Romney is going to show his tax forms?

STEINHAUSER: Well, first of all, that was number 16 last night, Kyra. There's going to be a quiz on this later, OK? I'm going to ask you later.

PHILLIPS: Sixteen.

STEINHAUSER: So ours will be number 17. Sixteen last night, 17 is ours. Second of all, Rick Perry actually had a very good debate. He was pretty -- remember all that criticism back in the fall when he plunged and didn't do so well? Had a very strong debate last night. But it may be too little too late for Rick Perry. He's pretty low in the polls here in South Carolina.

Romney, he's been knocked left and right, back and forth over these taxes. And for the first time he said, well, maybe, probably, maybe I will do it in April, stay tuned. We'll see if he does. But it gives the other candidates a line of attack against Romney. It gives the Democrats a line of attack. What's he hiding.

Legally does he have to do it? No. Candidates are not legally -- you know, forced to release their taxes. He is legally required to do his financial disclosure report. He's already done that. Stay tuned on whether he actually releases the taxes -- Kyra.

PHILLIPS: All right. Paul, thanks so much. And don't forget Thursday just days before the South Carolina primary the GOP contenders debate the issue, debate number 17, according to Paul. The "SOUTHERN REPUBLICAN PRESIDENTIAL DEBATE" is right on here on CNN Thursday night, 8:00 Eastern.

We'll have your next political update in just about an hour. And for all the latest political news you can always go to our Web site, 24/7 CNNPolitics.com.

All right. American motorists, buckle up. Bad news at the pump and it may get worse. Gas prices already at record highs for January. Now experts say that some of us could be paying five bucks a gallon this summer.

Christine Romans joining us now.

So how soon could this happen, Christine?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I know. That's that round numbers that strikes fear in motorist's' hearts. And there's a headline on CNNMoney getting a lot of attention to this morning. That in some spots of the country some analysts are saying five bucks by the driving season this summer.

But there are other analysts in that same article who are pointing out that maybe $3.50 is more like it. It all depends on a couple of things, how modest the U.S. recovery is, what's going on with Iran in the Strait of Hormuz, and just how briskly other countries' emerging economies like China, and India, and Brazil are growing. All of those things coming together to drive these forecasts higher.

I want to show you where we are right now with gas prices because it's different. To say an average gas price, as you know, like saying the average temperature across the country. Different taxes, different everything.

Take a look at this. The darker the red, the higher the gas price that you're paying right now. But gas prices are felt differently, too. When you look at gas prices as a percent of your income, you can see the darker blue, these are people who are paying a lot of their income in gas.

In Mississippi, for example, it's 14 percent. In Florida, it's about 10 percent. South Carolina it's about 12 percent. Why is that important? Because the people are going to the polls to -- been listening to their GOP hopefuls are people who are feeling these higher gas prices more keenly than elsewhere in the country.

So there you go, gas prices, one of those numbers, Kyra, that we always say is probably every week the economic indicator you feel more than anything else, that and your job.

And quickly I wanted to bring you the new CNN/ORC polls about how the president is doing his job. That's what people have been telling us, 47 percent approve, 51 percent disapprove. As you know 11 percent approve of Congress, which is -- (LAUGHTER)

ROMANS: Hardly anything. And what are people saying about the economy overall? Right now about 18 percent of Americans are saying it's good. That's a little bit of an improvement. Forty-two percent, though, are saying it's somewhat poor, 38 percent saying it's very poor. That also is a little bit of improvement. Well, that tells you basically it's still eight out of 10 people are saying we'd like the economy to be a little bit better -- Kyra.

PHILLIPS: Yes. We all would. Christine, thanks.

ROMANS: You're welcome.

PHILLIPS: The captain of that wrecked cruise liner faces a judge this morning. And did passengers aboard that ship signed away some of their legal rights when they bought their tickets? Ashleigh Banfield with the legal details next.

And a mother and her two children just inches away from plunging to their deaths until a pretty incredible rescue. You'll see it.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories "Cross Country" now.

It's deadline day for Wisconsin's Democratic Party which is trying to recall Republican Governor Scott Walker. The governor came under fire last year for stripping public employees of their collective bargaining rights.

And this is life today in Valdez, Alaska. Shoveling snow even for one of the snowiest place on earth, well, they've had about enough. The city has seen a history-making accumulation of 322 inches of this stuff so far.

And the heroic action of some California rescuers helped save a mother and her two children from this horrific crash. Their car was actually dangling over a freeway bridge after a semi rear-ended it. Now the big rig driver didn't survive. His truck plunged into a ravine and burst into flames.

A technical failure, that's what the captain of this wrecked cruise liner off the coast of Italy told a judge this morning. Francesco Schettino denies that he did anything wrong to cause the ship to hit the rocks. He also denies abandoning it. But newly released radio transcripts actually contradict his story.

CNN's Ashleigh Banfield joining me now from New York.

So, Ashleigh, let's take a look at some of that -- some of the conversation. Let's talk about how damaging these transcripts are.

ASHLEIGH BANFIELD, CNN CORRESPONDENT: Do you want me to read some of the transcripts here, Kyra? They're absolutely harrowing.

PHILLIPS: I apologize for that. We had a graphic made up as part of the transcript. You've actually got it. So why don't we --

BANFIELD: I do. And --

PHILLIPS: Talk about the part where it was very confusing whether he abandoned the ship or not.

BANFIELD: Sure.

PHILLIPS: Watching you this morning, it was hard to understand what exactly he did.

BANFIELD: I think there was so much confusion on that -- on that ship that night, but here is one thing that is crystal clear. The communications between Captain Schettino and the port authority started like this.

Port authority said, "How many people are on board?" And he says, "Two-three hundred."

And they say, "How come so few people? Are you on board?" And Captain Schettino says, "No. I'm not on board because the ship is keeling. We've abandoned it."

Port authority says, "What? You've abandoned the ship?" And Schettino says, "No. What abandon? I'm here."

And, you know, that is really, really damning stuff, Kyra, because up until now there had been some question. Did he abandon ship, did he not? Did he leave passengers behind and get off himself or not?

Because it is a charge in maritime law, abandon ship, and it carries with it quite a punishment, as does shipwreck. So, that he made this first appearance, which is really akin to sort of part of the investigation. It's critical because things are coming out, these transmissions are coming out now.

And they will -- mark my words, Kyra -- they will make their way into this case.

PHILLIPS: And he already faces manslaughter charges, right?

BANFIELD: Yes.

PHILLIPS: What -- how do these transcripts, I guess, make a stronger case for those charges?

BANFIELD: Well, and here's the weird part. Right now, we only know of six people dead, but there are 29 people missing. So now, we could be talking about a whole lot more charges of manslaughter if a number of bodies start turning up.

And here's the other thing, in Italian law, they do allow for consecutive sentencing, and I'm not suggesting for a moment that he's guilty, I'm not suggesting for a moment that he'd be sentenced at all on manslaughter. But if he is, the exposure is vast on manslaughter alone.

And, of course, what's going to matter, Kyra, is, what was his negligence here? How did this happen? And one of the most disturbing things that's out there is one of these reports that this might have been show boating, trying to get closer to shore.

One of the maritime officials has been quoted as saying this thing should have been four miles out to sea. And you can see from your pictures, it was pretty darn close to shore.

But that said, that might play into this case as well because there have been reports that this captain actually after the ship struck ground did some pretty good maneuvering to get it into shallower waters. But for that fact, this ship might be under water like the Titanic and the 4,200 plus passengers on board, the bulk of them may not have gotten out to safety.

So, there could be a number of different factors that play into litigation here.

PHILLIPS: All right. And we'll follow it and keep talking about the story with you, Ashleigh. Appreciate you following it for us and the legal side.

BANFIELD: Sure.

PHILLIPS: And coming up, we're going head to China. We'll show you the ugly side of capitalism. Our cameras actually followed the scalpers as they rule the streets and ruin the markets for Apple products.

Burger King has always said you can have it your way. Now, that includes delivery right to your door. We'll go to the New York Stock Exchange for details.

(COMMERCIAL BREAK)

PHILLIPS: From soccer moms to techno geeks, few gadgets can get the pulse racing like a shiny new iPhone or iPad. And that enthusiasm can make for some ugly business in China. Take a look at what our Stan Grant found.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hello.

UNIDENTIFIED MALE: Hello.

STAN GRANT, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Someone doesn't want us to see what they're up to. Right in front of Apple's flagship store in the heart of Beijing, gangs of scalpers are preying on customers.

Our news assistant is approached by a man wanting to sell her a new iPhone 4S. "We bought this from a real Apple Store in Beijing," he says. "If you're really interested, I can show you."

He tells her she can buy it for 5,800 R&B. That's about $1,000. A markup of more than $100 on the official price.

They're not just selling. They're buying as well.

This man was talking on his iPhone and approached by one of the scalpers.

UNIDENTIFIED MALE: They wanted to buy my iPhone.

GRANT (on camera): So, do you have your iPhone there with you?

UNIDENTIFIED MALE: Yes.

GRANT: Give us a look.

OK, they saw it and wanted to buy it off you?

UNIDENTIFIED MALE: Yes.

GRANT: What did they say to you?

UNIDENTIFIED MALE: They told me they'd give me 2,600 kwai?

GRANT: Two thousand six hundred kwai. So, what's that? It's about $500, wasn't it?

UNIDENTIFIED MALE: Yes.

GRANT: What do you think they're doing here?

UNIDENTIFIED MALE: I guess ripping people off.

GRANT (voice-over): Everything here is undercover. When exposed, they turn nasty. Our assistant, abused.

This is how far scalpers will go to try to get their hands on apple goods. This was meant to be the official launch of the new iPhone. Worried about the crowd, Apple withdrew it from sale when it all went terribly wrong.

The gangs targeted stores to buy up all of the stock and resell it for a profit. Apple has taken it off its shelves across China. You can only buy the phone online.

(on camera): But here, less than 10 minutes away, you can buy the iPhone 4s. In fact, you can buy many Apple products in this fake Apple market. You can buy iPads, you can buy iPods, you can buy computers. And all of them apparently coming from Apple Stores.

(voice-over): The logo is the same. Apple does not endorse these stores, but its goods are displayed. There's nothing you can't buy here if you're willing to pay.

"I can promise you these are the real stuff. Don't worry." She says they come with a full guarantee from the official Apple Store. The markup, a gain about $100 on the real Apple price.

"If you really want the 4S now, the only way to get it is through us," she says.

The stores can't sell them. We've got them through our ways.

Chinese consumers are caught in the middle. Scalpers turn a nice profit. Apple lovers of China left with a sour taste in their mouth.

Stan Grant, CNN, Beijing.

(END VIDEOTAPE)

PHILLIPS: So, are you craving a whopper? Why not get it delivered.

Alison Kosik is going to do that at the New York Stock Exchange so I'm told.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: I'm not going to deliver the burger for you. I'll tell you about though. If you're in the Washington, D.C., area, if you're in the Washington, D.C. area, Burger King's delivering right around there from 10 restaurants.

But there are some critics about this, Kyra. They say, ew, burgers and fries, they don't travel well. You know, that soggy bread and the soggy fries. But Burger King says it has thermal packing technology that will keep those fries crisp.

But, who doesn't love delivery? It's so popular. We get our groceries delivered, Christmas trees. Even here in New York, Kyra, did you know we can get a pint of ice cream delivered at 3:00 a.m.? Yes, we can.

If successful, this definitely could heat up the competition among fast food restaurants. And Burger King apparently is leading the pack right now -- Kyra.

PHILLIPS: All right. Wall Street was closed yesterday for MLK day. Is a little rest and relaxation putting investors in a buying mood?

KOSIK: I think that's exactly what they needed, was a little rest, because Dow futures right now are up 100 points.

Some decent news on the global economy came out. We found that China's economy is slowing, but not as much as many had feared. We're also not seeing any negative reaction in the markets around the world after Standard & Poor's on Friday downgraded nine euro countries including France.

Also, keep everybody in a buying mood apparently, manufacturing activity in the New York region picked up. That is sending oil prices up about 2 bucks over $100 a barrel. Opening bell is ringing in about five minutes. You should see the buying begin then -- Kyra.

PHILLIPS: Sounds good. Alison, thanks.

Wile the investigation continues into what went wrong on that cruise ship off the coast of Italy, we're going to show you how captains here train for disaster.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Captain, we have a grounding checklist.

UNIDENTIFIED MALE: I'm going ring the general alarm.

(END VIDEO CLIP)

PHILLIPS: Coming up, CNN's Brian Todd takes us inside the training center in Florida.

And Michelle Obama already plays a lead supporting role to the president. Now, she's making a cameo in a television show. That's coming up.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now.

If you can't get on Wikipedia tomorrow, don't worry. It's not your computer. Wikipedia and several other large Web sites plan a blackout tomorrow to protest an anti-piracy bill before Congress. Time Warner, by the way, a parent company of CNN is among one the industry in support of the legislation.

Mitt Romney remains in the lead and that makes him the prime target, especially at last night's GOP debate in South Carolina. His rivalries are turning up the heat, asking for his tax returns. The next debate, Thursday night, 8:00 Eastern, right here on CNN.

And Congress returning to work on Capitol Hill today with an all-time low job approval rating. It's now at 11 percent, according to a new CNN/ORC International poll.

And today, President Obama's going to meet with business leaders assigned with creating new jobs. For a president whose re-election may depend on an economic recovery, the proposals face two big challenges, Congress and the clock.

Christine Romans joining us to explain.

So, Christine, what are the CEO's proposing exactly?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, you know, and I want to be clear because the CEO of General Electric has said, if there were a silver bullet for jobs creation, wouldn't we have fired it? There's no one thing you can do. It's a lot of different things.

And so, corporate America has the ear of the president for what they'd like to do. Among the things they'd like to do is cut the corporate tax code. Simplify it. Do some kind of a tax reform and in that tax reform, lower corporate taxes, the taxes that corporations pay.

As you know, we have said many, many times, there are loopholes and offshoots and offshore places they can do business to try to avoid U.S. taxes. They'd like to cut the corporate tax rate instead. They want to expand domestic oil drilling. That's something else that seems to be coming up again and again as the president meets with this group.

But at 11:05, we'll find exactly in their roadmap to renewal what they plan to propose. I mean, the draft of this has been seen by "Reuters," the news agency. And it says that they've also talked about how to shore up manufacturing, how to shore up innovation in this country.

In the beginning to both of those steps, Kyra, quite frankly, is education. We can't out-innovate the rest of the world. We can't out-compete the rest of the world if our education system isn't geared up to supply the workers and the education that people need to succeed.

So, those are the things they've been talking about behind closed doors. But it is a complicated and tricky process because different companies, different sector of the economy feeling about what you can do (VIDEO BREAK). You know, everyone says you ought to fix it. It's like saying I love my mother. We need a simpler tax code.

But quite frankly, how you do that, who benefits the most, who gives up the most -- that's where it starts to get tricky, Kyra.

PHILLIPS: Christine Romans in New York for us -- Christine, thanks.

And right now, we've got new developments from Italy for you on the capsized ship liner. Just moments ago, we learned that crews have found five more bodies inside the ship. That puts the death toll at 11 now. And it means 23 people remain missing, two Americans have been on that list. And this morning, the captain of the ship facing questions from a judge -- a decision due at any moment on whether he should remain jailed while the investigation unfolds.

Prosecutors want to press manslaughter charges against him. We'll keep following all the latest developments for you.

Well, the Concordia disaster is raising a lot of questions about the training of captains and crew aboard these massive vessels. After all, thousands of lives depend on them.

So, CNN's Brian Todd went to Florida where captains train by experiencing a realistic simulation of their worst fears.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): The vessel's pitching drastically. Water is coming over the bow. You can feel your stress levels and your lunch rising.

One of the scenarios captains and crew are put through at the American Maritime Officers' Union training facility called the Star Center. They've trained thousands of officers here, including several cruise ship captains.

With Captain Larry Reimer, we go inside the 360, a high tech simulator.

CAPT. LARRY REIMER, AMERICAN MARITIME OFFICERS' UNION: You have to constantly keep in your mind what type of weight you're dealing with, what type of momentum you're dealing with, and the fact that behind you here, you've got thousands of passengers.

TODD: Every aspect of navigation is covered -- steering, depth measurement, speed, how to read maps and radar, where every potential obstacle is. They can re-create every major port in the world.

REIMER: We're coming into New York harbor now. You've got governor's island here on the right.

TODD: They don't have a re-creation of the island off Giglio, Italy, but they can come close.

(on camera): The trainers here have also created a place called Generica. It is a generic country or city that you've come into, that has every type of characteristic to challenge you for maritime navigation.

Over here, you've got a tight coast line with a village. We've got to go underneath this bridge here to get to a channel to get to the port city over here to the right. You can tell us we're way under here.

You've also got to navigate past some rocky coast line over here. So, as we do all that, I'm going to take the con, as they say. I'm going to take controls. And Captain Reimer is going to take me through the process.

(voice-over): The slightest turn can cause a top heavy cruise ship to pitch dangerously.

REIMER: Not too much. She'll steady right up on you here.

TODD: I eventually run the ship aground.

REIMER: OK. That's it. We're aground. Let's stop engines.

Snorre, pull the checklist foregrounding.

SNORRE KAUSLAND, AMERICAN MARITIME OFFICERS' UNION: Captain, we have a grounding checklist.

REIMER: I'm going to ring the general alarm.

TODD: They run checklists to see if the ship is taking in water, send a mayday call. And never, ever is the captain to leave the bridge of the vessel until everyone else is off the ship. Reimer says they teach captains to deal with stress.

REIMER: What happens with stress is you get what they call tunnel vision. You lose the whole picture of what's going on. The only way to deal with that, take that stress off you to open up your awareness of what's going on, is to take some of the stress off you and to give it to other members of the team.

TODD: Reimer says the most common mistake captains make, trying to do everything themselves.

Outside we're shown how they train crew members to evacuate everyone on to life boats.

KAUSLAND: You would pull that. That lowers the boat.

TODD: Snorre Kausland, who teaches crisis and crowd management, says all crew members from cooks, to housekeepers, to entertainers, each have a task in an emergency. To muster passengers at specific places, get them organized.

KAUSLAND: You have a whole loft of people on board that are not mariners and have absolutely no training in safety matters. And those are, of course, the passengers.

So, regulations say we need to find some way to, you know, inform the passengers of what an emergency signal is, how to use a life jacket, and also what to do when they hear an emergency signal.

TODD: The trainers here say despite the Costa Concordia accident and the perceptions emanating from that, the cruise ship industry is still incredibly safe. They say hundreds of thousands of people are on the high seas on these cruise ships every day. Accidents are he extremely rare.

And the vast majority of captains and crew are very well- trained.

Brian Todd, CNN, Dania Beach, Florida.

(END VIDEOTAPE)

PHILLIPS: Well, have you noticed that the EPA is a punching bag for the Republican candidates? They call the agency a job killer.

L.Z. Granderson says there won't be any people to work if the air and water is toxic. They'll be working in the cemetery. We'll talk about his new column in just a few minutes.

And Madonna nabbed the prize for best original song at the Golden Globes, leaving fellow nominee Elton John in a bit of a foul mood. Now, he's eating his own words. Details next.

Let's check the markets quickly. Five minutes after the opening bell. Dow Industrial is up 100 points. Quick break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Michelle Obama making her acting debut. Several students got a prescreening of the Nickelodeon show featuring the first lady.

Let's talk with Nischelle Turner out of Los Angeles with more on that.

So, what do you think, Nischelle?

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: You know, by all accounts, Kyra, she did pretty darn good. She's been working hard to support military families. And this is a school with a lot of kids that have parents in the military.

So, what a better place to show off her debut on "iCarly," which is a show with the main character who's father is a deployed Air Force colonel. But, first, let's take a look at the first lady's acting skills.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hey, guys.

UNIDENTIFIED FEMALE: They throw me out the front door into heavy traffic. And then this big fish truck pushes me straight into Bell Harbor.

MICHELLE OBAMA, U.S. FIRST LADY: Did the pumpkins float?

UNIDENTIFIED MALE: No. They sank like a rock.

I'm telling you, my life is like a sitcom. I don't know.

(END VIDEO CLIP)

(LAUGHTER)

TURNER: You know what? She's got pretty good timing there. And she got good reviews.

The show stars say the first lady was a great guest star. She's got really good comic timing, Kyra.

PHILLIPS: I'll tell you what? You've got the president celebrating Betty White's birthday with this little skit. Now, you've got Michelle Obama on Nickelodeon. I'll tell you what? You know, they're really moving into the mainstream here of pop culture.

TURNER: Watch out, Hollywood.

PHILLIPS: Yes, I'm telling you.

All right. Now, what's all this drama between Elton John and Madonna?

TURNER: Oh, this one's getting good. This is a celebrity feud that was spawned by the Golden Globes.

So, I want to tell you the deal. Elton John and Madonna were both nominated for best original song in a motion picture at the Golden Globes. And I guess Elton really wanted to win this.

Now, this all started on the red carpet before the ceremony when Elton said Madonna didn't have a bleeping chance for winning the Globe for best song. Well, if you were watching the Globes, you saw his reaction when Madonna won, right?

Well, then, Madonna took some shots back at Elton on the carpet when reporters asked her about his jab.

After she actually won the Globes, she took the high road and she said, "Well, I hope he speaks to me for the next couple of years. He's known to get mad at me. He's brilliant, and so I adore him. He'll win another award so I don't feel bad."

But then Elton's husband, David Furnish, well, he decided to stir the pot on his Facebook page immediately after Madonna won. He used a profanity and he said, this, quote, "shows how these awards have nothing to do with merit. Her acceptance speech was embarrassing and its narcissism."

So, they're going back and forth. But, Kyra, I have to think that they actually like this kind of fighting back and forth in the media.

PHILLIPS: Publicity?

TURNER: Yes, I think they love it.

This fight between them has been going on for about eight years. So, it's never ending.

And you know what? They're both really successful. They're both really talented. Let's move on.

All right. And, Nischelle, we're going to talk more next hour. Betty White's 90th birthday, I mentioned that. She got an early birthday present last night. I'm not talking about the skit from the president, which Nischelle and I were talking about. You'll find out what happened during her birthday barb. It's next hour.

Well, L.Z. Granderson has a big problem with Republican candidates beating up on the EPA. First and foremost, a Republican president created it, not a bunch of pot smoking hippies at a nudist camp. Those are his words, not mine. We're going to talk about his column right after the break.

(COMMERCIAL BREAK)

PHILLIPS: Well, minutes ago we learned that five more bodies were found inside the capsized ship "Costa Concordia." All were wearing life jackets we're told. And now an Italian judge has ruled that the captain should remain jailed as the investigation unfolds.

Barbie Nadeau was in the courtroom. Joins us on the phone now. Barbie, tell us what happens?

BARBIE NADEAU, CNN INTERNATIONAL CORRESPONDENT: The chief prosecutor addressed the press shortly after the ruling was made. And said that they've interrogated the captain. He was commander at the time of the accident. But the prosecutor -- and the judge -- the judge decided based on the prosecutor's request to reserve the decision about whether or not he has to stay in jail during the entire investigative process in Italy, a suspect in a crime can stay in custody for up to a year before being charged.

So the captain has not been charged, he's in custody now but there will be another hearing in a matter of weeks to determine whether or not he has to stay in jail during the investigative process. We won't expect that he'll be charged any time soon, though because the investigation is still being conducted.

PHILLIPS: All right. Barbie Nadeau reporting to us there from Italy just as the captain appeared before a judge in court facing charges. The biggest, manslaughter.

Well, have you noticed that the Republican candidates for president aren't big fans of the Environmental Protection Agency? Take a listen.

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: The EPA has become a major job killer, a major energy cost increaser and a major anti- technology system.

RICH PERRY (R), PRESIDENTIAL CANDIDATE: The EPA and their continual pressure upon industry with regulations that, frankly, aren't making our water any clearer, the air any better to breathe, the safety, it's just more cost.

(END VIDEO CLIP)

PHILLIPS: But hold on. A Republican president created the EPA; Richard Nixon in 1970. And as L.Z. Granderson says in his new column in CNN.com. "Nixon agreed with the rest of the thinking society that clean water and air was a good thing".

L.Z., how did we get here? How did all this anti-EPA sentiment get started?

L.Z. GRANDERSON, CNN.COM CONTRIBUTOR: You know I hate to make it -- boil it down to about the oil and gas companies, but you know if the shoe fits, they've got to wear it. And they've been very resistant to some of the regulations that the EPA has been trying to impose largely because it's going to cost them more money to do some of the things that's being required of them.

Now when I wrote the piece, I really wasn't trying to be as partisan as it's coming across. But if you listen to the GOP debates, if you listen to the candidates, I mean, they're all doing it. They're all beating this drum about how bad the EPA is forgetting the reason why it was created was kind of really important.

PHILLIPS: Explain why you make the point that you don't think environmental protection should be up to the states.

GRANDERSON: Well, you know if you look across the country right now, what you find are a bunch of cash strapped states. I mean, there are stories about police stations having to rotate hours because they don't have enough dollars to keep them open 24 hours. And so this idea that we're going to all of a sudden ask these states that can barely keep them running now to take on the responsibility among doing things like all of the companies and making sure they are doing what they are supposed to do to keep our air clean and our water safe I think is ludicrous.

I mean, if you look at the state of like Mississippi for instance, you know the poorest state in the country, the least educated state in the country, if you get rid of the EPA and ask Mississippi to monitor business in its area, I mean, you're going to find a lot of poor people that are going to be hurt by the holes that are going to be created by the EPA not being there.

PHILLIPS: All right so final thought then. Do you honestly think if -- if Gingrich or Perry or Paul were elected, that they would actually be able to abolish the EPA?

GRANDERSON: You know that's a good question. I don't know how serious they are about this threat. You know, a lot of it is just pandering to their conservative right in saying the things they think that their base wants to hear.

You know I wrote the piece largely because I want that base to think for a moment. You need to think about your own best interests. Is it really in your best interest to let companies like oil companies, like BP, in what we saw in Louisiana, is it really in our best interests to let them do the policing or is this one area in which you really want the federal government to have a voice and to be strong?

You know if maybe if that base starts saying things that you what, we like the EPA, maybe these candidates will start making that threat of getting rid of it.

PHILLIPS: L.Z. thanks so much. And you can read L.Z.'s column, baked fresh this morning at CNN.com/opinion. It's called "EPA: Job Killer or People Saver?" And you can weigh in with your opinion, as well.

All right, let's check news across country. The government has placed a ban on the Burmese python and three other constrictor snakes that threaten the Florida Everglades and other sensitive eco systems across the country. Earlier today, the U.S. Fish and Wildlife Service finalized a rule which prevents people from importing or transporting the snakes into the United States.

In Alaska, the process of transferring fuel from a Russian tanker to the snowed-in town of Nome, Alaska, has started. The small town only has enough fuel to last until about March. The voyage through 300 miles of sea ice is the first ever attempt to supply fuel to an Arctic Alaska settlement.

And some tech savvy girl scouts in Texas will soon be using a Smartphone app to sell their famous cookies. The Girl Scout cookie locator app is expected to be released within a week. It will be available for iPhone and android users.

Well, she's a beauty queen, but she still has to wait for the quarterback to call her back. Miss America wants to meet Aaron Rodgers. That story, next.

(COMMERCIAL BREAK)

PHILLIPS: Happening a little later in the CNN NEWSROOM, around 11:00 Eastern, President Obama meets with his jobs council to discuss strengthening the economy and accelerating job growth.

At 1:00, we head to L.A., Lindsay Lohan is scheduled to appear in court for another update on her probation.

And then at 2:00 we expect a news conference in Orange County, California; police and the FBI, rather, will update us on Itzcoatl Ocampo who is accused in the killing four homeless men.

We're following lots of developments in the next hour of the CNN NEWSROOM. Let's go ahead and check in first with CNN political director Mark Preston. Hey, Mark.

MARK PRESTON, CNN POLITICAL DIRECTOR: Hey Kyra. You know last night, the five Republican presidential candidates faced off in the debate up in Myrtle Beach. Well in two days those candidates are going to be here right behind me at the North Charleston coliseum to make their closing arguments to the South Carolina Republican voters. I'll have more at the top of the hour.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Hey there. I'm Zain Verjee in London. I've been taking a look at newspapers around the world. And in just a few minutes, I'll tell you what the headlines are about what they're saying about the cruise ship disaster in Italy. That's in just a few minutes.

POPPY HARLOW, CNNMONEY.COM: And I'm Poppy Harlow in New York. We're going to take an interesting in-depth look at what could be America's next boom town. We're talking about eastern Ohio where they are getting billions of dollars for oil and natural gas drilling, but they're also getting earthquakes. We'll give you more in the next hour. PHILLIPS: All right, guys. Thanks so much.

And 600,000 children sleep on the streets in Afghanistan. More than two million are orphans. Next hour, six of them join us. They're seeing America and sharing their amazing adventure.

Stay with us.

(COMMERCIAL BREAK)

PHILLIPS: Aaron Rodgers may not be going to the super bowl, but the Packer QB did get another invitation.

(BEGIN VIDEO CLIP)

LAURA KEAPPLER: From the home of the reigning Super Bowl champs, if you're watching, Aaron Rodgers, call me. I'm Laura Keappler.

Miss Wisconsin Laura Keappler gave Rodgers a shout out just before she won the Miss America crown Saturday night. We'll keep you posted.

The Packers' playoff loss caused one fan more than his pride. New York businessman Peter Serafin blew $240,000 big ones on the road trip to Lambeau Field. Here's just part of what he got: 70-foot RV, two waitresses, 100 gallons of beer, 150 pounds of prime rib, six seats on the 50-yard line and Serafin took along five New York Giants fans. Imagine that trip back home.

The Denver Broncos say that Tim Tebow will be their starting QB going into training camp this summer. However, he is going to work on improving his passing during the off season. And he's got a pretty good tutor.

We're told that Hall of Famer and Broncos executives John Elway is going to give him some tips.

Check out these mammoth waves off Tahiti. Cinematographer Chris Brian uses a super slow-mo camera to actually capture them and of course, a couple of those daring surfers riding them, as well.