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Lou Dobbs Moneyline
Dow Advances 20.50 to 11,090.74; Nasdaq Climbs 46.27 to 2,264.00; President Bush Signs Tax Cut Bill
Aired June 07, 2001 - 18:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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LOU DOBBS, CNN ANCHOR: ... Nasdaq closed at its high for the session, investors assessing the latest report on the economy, claims for unemployment jumping to the highest level in nine years.
We will have much more on the economy, but we begin in Washington, where today, President Bush marked his biggest policy achievement yet. Mr. Bush signed into law the most dramatic tax overhaul since 1981, $1.3 trillion in tax cuts over the next 10 years.
Congress passed the legislation just before Senator Jim Jeffords defected from the GOP. Senior White House correspondent John King reports.
(BEGIN VIDEOTAPE)
JOHN KING, CNN WHITE HOUSE CORRESPONDENT (voice-over): The president's signature locked in the first major tax cut in 20 years, and the first of what he hopes will be a string of legislative victories, even now that the Senate is in Democratic hands.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today is a great day for America. It is the first major achievement of a new era, an era of steady cooperation.
KING: The measure provides $1.35 trillion in tax relief over the next 10 years. This year, single taxpayers get a $300 rebate check, married couples $600. Other major changes are phased in over the next decade. Lower marginal tax rates, including a drop from 39.6 percent to 35 percent in the rate paid by the wealthiest Americans.
The child credit goes from $500 to $600 next year, and to $1,000 by 2010. There is a gradual easing of the so-called marriage penalty on two-earner couples, a phase-out of the estate tax, and new incentives to save for education costs and retirement.
BUSH: We recognize loud and clear the surplus is not the government's money. The surplus is the people's money, and we ought to trust them with their own money.
KING: Mr. Bush called it a bipartisan triumph, but only a modest number of Democrats voted yes, and the rest have a long list of complaints. To make it fit within budget projections, all the tax breaks expire in 2010, unless renewed by Congress.
Tax cuts leave the government with less money, forcing tough spending choices. And working-class Americans in the 15 percent tax bracket get no rate reduction.
REP. RICHARD GEPHARDT (D-MO), MINORITY LEADER: We want tax cuts that leave enough room in the budget for the priorities people most care about: health care, education, Social Security, energy, the environment. This bill does not do that.
KING: The tax cut is now law, but the debate over spending priorities will continue in a Congress where Democrats now have a greater voice, and already are predicting that sooner or later the Bush tax cut will have to be scaled back.
(END VIDEOTAPE)
KING: Now the White House says it will paint any effort to trim the president's plan as an effort to raise taxes. But just the fact that this debate is taking place, a reminder that even as the president celebrates one major victory, the rise of the Democrats in the Senate makes the path to future celebrations much more difficult -- Lou.
DOBBS: John, it's also tonight fairly clear that the Democratic leadership is also divided on this issue. Senator Max Baucus here last night saying he's not in favor of opening the issues within that tax legislation, do you think the president will be taking some advantage of that as well?
KING: Well, the president certainly will make that message -- give that message to Senate Democratic leader, now the majority leader, Tom Daschle, when they have dinner here at the White House tonight. Most Democrats believe they won't try to open this bill in the short-term. Indeed, they want the issue for the 2002 election, to say the tax cut doesn't leave enough money for Social Security, for Medicare, for education.
Down the road, though, some Democrats might try to reopen it. The White House again saying, go ahead and try, we will be happy to engage in a debate over the White House will be quick to call an effort to raise taxes -- Lou.
DOBBS: John, thank you very much. John King from the White House.
The Treasury Department will begin sending out 95 million rebate checks beginning July 20. Economists have very different views on just how much that rebate will help.
Brian Wesbury says the rebate will add just 0.1 percent to the gross domestic product this year. Allen Sinai says, 0.2 percent. Wayne Angell at Bear Stearns says the rebates will provide what he calls a "modest" stimulus to consumer spending, but others however see a much more dramatic impact. Richard Berner at Morgan Stanley says those rebates will add 1 1/4 percentage points to GDP in the second half of the year. And Tony Crescenzi at Miller Tabak says: "It will be a big boost to retail sales."
Coming up next here on MONEYLINE, a top economic adviser to the president will give us his view on how the tax cut plan will affect the economy. Glenn Hubbard, in his first television interview as chairman of the Council of Economic Advisers.
But first, we have just received late word that the appellate court in Denver, Colorado, has denied Timothy McVeigh's request for a stay of execution. We are going to Susan Candiotti who is outside the 10th District courthouse in Denver, Colorado, where that request for a stay has just been denied -- Susan.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Hello, Lou. This decision is not expected, because, quite frankly, this is the very same court that hand-picked Judge Richard Matsch to try the Oklahoma City bomb case, and this court has never reversed any of his findings in that particular trial.
So, with that in mind, this court has upheld Judge Matsch's rulings and has denied Timothy McVeigh's appeal asking for a stay of execution. It's a seven-page opinion, and the reason boils down to this: this court agreed with Judge Matsch when it said that the defense attorneys were not able to prove to them that any fraud have been committed on the court.
And they used a very high standard for that. They agree with Judge Matsch, and they said, look, there's no evidence of any bribery of the judge, of any of the jurors, and they said that they agreed with Judge Matsch when he said that they could find no evidence, when the FBI failed to turn over all these documents, that there was any pattern among FBI agents, a scheme to defraud the court. And therefore, these judges said that they didn't find enough evidence of that fraud upon the court.
And therefore, they found secondly that they are treating Timothy McVeigh's appeal to the lower court as what they call a "success of appeal." He would have to have proven that he was innocent of this crime, in other words. It's a very, very high standard. And because, quite obviously, this court found that Timothy McVeigh does not claim innocence -- his attorneys say no, he's not innocent of the crime -- they're using that very high standard.
It doesn't matter, the court found, that Timothy McVeigh's lawyers are now saying that we were really only trying to see whether the jury might have found a different sentence, deciding between life and death. It doesn't come into play here. Therefore, this court has denied the stay of execution.
What happens now? Well, it is all up to Timothy McVeigh. He could go to the U.S. Supreme Court, but that decision is his. His lawyers are already preparing the documents, and they will be meeting with him, as early as tonight, to discuss what he wants to do next. Back to you, Lou.
DOBBS: Susan, thank you very much. Susan Candiotti from Denver, Colorado, where the 10th Circuit Court of Appeals has denied Timothy McVeigh's request for a stay of execution. His execution is scheduled for Monday by lethal injection.
Turning back to Washington, D.C., the tax cut legislation which the president signed today will expire on December 31, 2010. Republicans are arguing that the economy will benefit most if those changes are made permanent. My first guest tonight says he hopes and expects the tax overhaul to be made permanent. Don Nickles of Oklahoma, one of the most powerful Republicans in the Senate.
Senator, good to have you with us.
SEN. DON NICKLES (R), OKLAHOMA: Hi, Lou.
DOBBS: John King just reported some concern on reopening this tax legislation as it becomes law today. What's your view?
NICKLES: Well, I certainly am disappointed when I hear the Democrats talking about trying to reopen it, so they can take away some of the tax reduction. In other words, they want to have tax increases.
They have tried very hard on the floor of the Senate and in committee. In committee, they offered numerous amendments; on the floor, over 50 amendments. They were unsuccessful. Senator Daschle and most of the Democrats -- not all the Democrats -- tried to take away the death tax repeal, the death tax cuts. They tried to take away tax cuts for upper-income people, only wanted to have them on the lower income side.
They weren't successful. We had a bipartisan coalition that stayed together, that kept the bulk of the tax cut, made it a reality, which the president did by signing it into law today. So, I think if they try to undo it, they will be unsuccessful.
DOBBS: In terms of the various committees that you serve on, and important committees at that, in terms of budget, finances and energy, you are square at some of the most significant issues facing the country and also the principle on the Bush agenda. In terms of the president's energy proposals, with the shift in power in the Senate, it looks as though that's going to be a very difficult agenda for the president to pursue. Would you agree?
NICKLES: Well, Lou, it's always tough. You know, having a 50/50 Senate and passing the largest tax cut in decades going back to 1981, that wasn't easy, but we were able to do it. We put together a bipartisan coalition, we made that happen.
Now we have 50-49. It's not going to be easy; it's going to be a little more difficult. Jeff Bingaman is going to be chairman of the Energy Committee instead of Frank Murkowski, and maybe is not as favorably inclined towards the president's initiatives on energy as Senator Murkowski. But I still think we can put together a bipartisan coalition -- we still have the same 100 senators we had two weeks ago -- and put together a good package, one that will help get us out of the energy dilemma that we find ourselves in. It won't be easy, but it's not easy at 50-50, either.
So, you know, we have some work cut out before us. But the president, unlike President Clinton, unlike previous presidents -- he put together a very comprehensive, I believe, balance energy package. One that's going to be a challenge to pass, but I hope that we can get the bulk of it through this Congress.
DOBBS: Senator, we thank you very much for being with us; Senator Don Nickles of Oklahoma.
NICKLES: Thank you; you bet.
DOBBS: Well, coming up next on MONEYLINE: the latest look at the job market. The biggest gain in weekly jobless claims since the early '90s. We'll be telling you all about that. And, a broad advance on Wall Street, where the Nasdaq jumped more than 2 percent on the day.
Intel: It's shares moving higher even as investors await late-day guidance. Bruce Francis has been following the company conference call, and brings us up to date -- Bruce.
BRUCE FRANCIS, CNN CORRESPONDENT: Lou, you can't call it upbeat, but Intel's outlook has the stock higher in after-hours trading. I'll have details next.
DOBBS: And, Californians are facing a summer of blackouts. We'll have a MONEYLINE special report tonight on why California residents may soon face, as well, a water shortage. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Further signs of a softening jobs market: The number of Americans filing for unemployment benefits last week climbed to the highest level in almost nine years. The number, worse than economists had expected and forecast. Especially disconcerting because of the shortened Memorial Day week. Jobless claims for that week climbed by 13,000 to 432,000. The four-week moving average moved up by 11,000 to 413,000.
And, despite that report, it was a solid day for the markets today, helped along by strong chip stock performance.
Jan Hopkins tracked the day's action at the New York Stock Exchange, and has the report.
(BEGIN VIDEOTAPE)
JAN HOPKINS, CNN CORRESPONDENT (voice-over): Semiconductor stocks sent the markets to their fifth winning session in six days. National Semiconductor beat the Street's earnings target, despite lower sales. The company expects sales next quarter to fall again, but added the worst may be over. The stock exploded, gaining nearly 11 percent, taking other chip stocks with it. Also helping, a report released late Wednesday saying the chip industry is on track for 20 percent growth in 2002. This, after a 14 percent decline this year.
GEORGE SCALISE, SEMICONDUCTOR INDUSTRY ASSOCIATION: As we go into the December quarter, I think we'll see the first signs of sequential growth quarter to quarter. So the December quarter is going to be an up quarter, in our view.
HOPKINS: The strength in chip stocks helped push the Nasdaq Composite 46 points higher.
A 4 1/2 percent jump in shares of Intel helped the Nasdaq, and accounted for nearly half the Dow industrials' gain. The Dow has squeezed a gain of 20 points from investors, although volume on both the New York Stock Exchange and the Nasdaq were, once again, below their three-month averages.
And that might mean the latest rally is not as solid as it appears.
DAVID BRIGGS, FEDERATED INVESTORS: The market has gotten a little bit ahead of the fundamentals. And I'd like to get a little bit further along into the year and get to see what I call the body language of some companies, whether it be pre-announcements or, actually, earnings announcements, before, you know, we start to take heart that, indeed, things have bottomed and, you know, are turning around for the technology stocks.
(END VIDEOTAPE)
HOPKINS: Despite the skepticism of some traders, it has been a stellar two months for Nasdaq. That index has surged 38 percent since April 4. That's when it hit its low, so far, for the year -- Lou.
DOBBS: Jan, the specialists, the traders down at the Big Board today, were their moods any different than yesterday?
HOPKINS: Yes, they were. And technology stocks, certainly behind the move. Of course, remember tobacco stocks actually fell today, so that was part of what meant that the Dow didn't perform as well as the Nasdaq.
DOBBS: OK, Jan, thanks; Jan Hopkins from the Big Board.
Intel today -- speaking of technology -- held its first-ever mid- quarter analysts meeting. And, overall, Intel sounded upbeat about the future. Intel voicing confidence in its second quarter revenue. Intel is trading now up more than $1 in the after-hours market.
Bruce Francis in on the conference call, and has the latest for us on Intel -- Bruce.
FRANCIS: Lou, it's what passes for good news on Wall Street these days: The warning that many on the Street fretted about did not materialize. Instead, Intel is sticking by its guns. Let's take a look. Intel says that revenue in the current quarter should come at slightly less than $6.5 billion. That's in the middle of its guidance that it issued in April, and slightly ahead of Wall Street's expectations. Chief Financial Officer Andy Bryant also says that he continues to see stability in the microprocessor and flash memory market. Communications chips, though, are still suffering.
Well, that adds up to a stronger second half for Intel. That's the typical pattern historically, and not much of a challenge, considering the first two quarters have been pretty much a bust. Well, the big message from Intel: The business is following normal seasonal patterns. Bryant calls that, quote, "pretty comforting."
But some analysts are concerned that Intel is sounding, here, more confident right now than its customers, the big PC companies. After all, yesterday Hewlett-Packard sounded more cautious at its analysts meeting.
(BEGIN VIDEO CLIP)
ERIC ROSS, THOMAS WEISEL PARTNERS: I was expecting to hear that the -- I'm hearing from my channel checks and from the PCOEMs, exactly like a lot of the other analysts, that the PC market was a little bit weaker in the second quarter than they would have expected. And so we're having trouble understanding how Intel is not really seeing that yet.
(END VIDEO CLIP)
FRANCIS: Now, Ross says that Intel isn't out of the woods yet. Intel typically takes in 40 percent of its revenue in a quarter in the remaining weeks. So lots of work left to do here, Lou.
DOBBS: And trying to forecast during these days of limited visibility, as they say, is difficult for even Intel, right Bruce?
FRANCIS: Absolutely.
DOBBS: All right, Bruce, thanks; Bruce Francis.
While, Intel enjoys that warm reception with investors, a number of fellow technology firms aren't so fortunate, issuing warnings after the bell and quite a few warnings, at that. Handspring having it's sales force -- forecast rather -- blaming a bloody price war with archrival Palm. Lattice Semiconductor and 3Com also slashing their sales forecast and chipmaker Transwitch says it will post a loss rather than a profit.
And in after hours trading Handspring is down nearly 10 percent, Lattice down nearly a dollar a share. Transwitch off more than 2$ a share, 3Com is flat.
Coming up next: A chilling message on the impact of global warming. Will it force the White House to take a tougher position against carbon emissions? And Britain at the polls in what could be a major victory for the ruling Labour Party. We'll be going to London for a live report. Also a one-time president of Argentina is now under house arrest, charges against former President Carlos Menem.
(COMMERCIAL BREAK)
DOBBS: As we have just reported to you, the 10th Circuit Court of Appeals has denied Timothy McVeigh's request for a stay of execution. Timothy McVeigh scheduled for execution by lethal injection this coming Monday.
Susan Candiotti, reporting from the 10th Circuit Court of Appeals, has just learned from defense attorneys for Timothy McVeigh that in all likelihood, Timothy McVeigh will not appeal the 10th Circuit Courts's refusal for a stay to the Supreme Court. We will be bringing you more as this story develops.
Today, the White House heard a sobering message on global warming, when a panel of top scientists said that the problem is real, and it is worsening. The National Academy of Sciences issued a report that could complicate the White House's energy plan. It could also raise the heat on the president over his stand on carbon emissions. Tim O'Brien has the story from Washington.
(BEGIN VIDEOTAPE)
TIM O'BRIEN, CNN CORRESPONDENT (voice-over): The National Academy of Sciences, which includes some of the country's preeminent experts on climate, concluded global warming could in fact wreak havoc on the world's weather patterns by the end of the century, causing floods in some places, droughts in others.
President Bush has always been skeptical of global warning and its causes. The White House today insisted the president is nonetheless committed to reducing it.
ARI FLEISCHER, WHITE HOUSE PRESS SECRETARY: The question is how much of a cause is human activity. The president is committed to focusing on how to reduce global warning. He does believe that it is an important problem.
PHILIP CLAPP, NATIONAL ENVIRONMENTAL TRUST: That's just a shell game.
O'BRIEN: Environmentalists say the president's own energy program will make global warming even worse.
CLAPP: We estimate that there will be about a 35 percent increase in the pollution that causes global warning over the next decade, just from the president's energy proposals alone.
O'BRIEN: But not everyone is buying the Academy's report.
JERRY TAYLOR, CATO INSTITUTE: When the report purports to represent the state of the science, yet ignores all the important papers published in the most-respected peer review journals to make its case, I think you could smell a rat. O'BRIEN: The White House itself had asked the Academy for the report, which is now providing ammunition to its opponents. Environmentalists say it underscores the need for mandatory controls on the emissions of carbon monoxide and other so-called greenhouse gasses.
President Bush, preferring voluntary incentives, has rejected mandatory controls, even though they're part of the global warming agreement signed by the United States and 167 other countries in Kyoto, Japan four years ago.
(END VIDEOTAPE)
O'BRIEN: Next week, the president travels to Sweden to meet with European leaders, and the Kyoto agreement and just what, if anything, the United States is prepared to do to reduce global warming is all but certain to be a hot topic -- Lou.
DOBBS: Tim, any indication -- we heard from Condoleezza Rice today that on acknowledgment of the seriousness of the issue, official acknowledgment by this administration -- any indication that it's going to change the policy pursuits of the Bush administration when they do travel next week?
O'BRIEN: There is no commitment whatsoever. The administration is saying we do know that some of the global warming is caused by human behavior, but we don't know how much. That's the open question. they have assembled a cabinet-level committee to look into that question.
I don't think we are going to get anything from the administration until that committee comes up with some additional answers.
DOBBS: Tim, thank you very much. Tim O'Brien, from Washington.
Coming up on MONEYLINE: British Prime Minister Tony Blair receives a vote of confidence at the ballot box. We'll go live to London for the very latest.
And I have just received word that we're going to go to Denver, Colorado, as we have been reporting. Susan Candiotti, our correspondent there, reporting that the 10th Circuit Court of Appeals has denied Timothy McVeigh's request for a stay of execution. His defense attorneys obviously gathering there for a news conference.
ROBERT NIGH, DEFENSE ATTORNEY: We have received the 10th Circuit's order and judgment denying our application for a stay of execution on Mr. McVeigh's behalf. We have informed Mr. McVeigh about the circuit's decision, and I would like to tell you that he intends to petition for (UNINTELLIGIBLE) to the United States Supreme Court, but I cannot.
Mr. McVeigh doesn't want to proceed any further in legal actions in order to try to stop his execution. He had prepared himself to die prior to the initial execution date of May 16, and he now, again, wants to make the final preparations necessary to be ready to die on Monday.
I think that most of you know that we have urged him at every turn to keep pursuing his legal options, even perhaps when he did not want us to do so, but he would consent and let us press on. He has reached the point that he wants us to press no further, and we have to respect that decision. It would be tempting to urge him to continue, but quite frankly, we're not in his position, and we don't have to make the mental preparations that he does.
The decision from the 10th Circuit was beyond words for us in terms of disappointment. We believe that Mr. McVeigh has raised extremely compelling legal arguments at every turn, and at every turn has been rebuffed. We believe that the rule of law has been brushed aside because of the nature of the case. And we do believe that what has been created is the Tim McVeigh exception to the rule of law.
We are going to try not to react out of emotion and make statements that we shouldn't make. I think that with that, we'll try to answer what questions you have.
QUESTION: Is there any chance that he will change his mind and go appeal to the Supreme Court?
NIGH: I don't believe so. Mr. McVeigh has resolved in his mind about putting an end to this process, and I believe that he doesn't want to create uncertainty for other people at the present time, and would allow it to go forward in part for that reason as well.
QUESTION: Mr. Nigh, what did you tell him to try to talk him out of that decision?
NIGH: There wasn't a large amount of need to try to talk him out of that decision. Our conversation was very frank. He was very forthright with me concerning his opinion about it and what he intended to do. And I respect his decision enough not to -- not to try to change his mind at this point.
QUESTION: Mr. Nigh, did Mr. McVeigh take time to think about what he wanted to do after he was told that the circuit court's decision, or did he decide straight away that this would be his course of action?
NIGH: He decided straight away.
QUESTION: How would you describe his demeanor in accepting this?
NIGH: I think his demeanor was extremely calm. I think that his resolve was clear. He takes this much more in stride than probably his lawyers do. Almost certainly.
QUESTION: Mr. Nigh, what about the Supreme Court (OFF-MIKE) he did appeal his case to the 10th Circuit Court of Appeals and is now saying he doesn't want to take that final step (OFF-MIKE) what was it (OFF-MIKE)?
NIGH: I suspect primarily it's the closeness in time. If we were to pursue remedies in the Supreme Court now, there would be more uncertainty, and he only has really two more days left to live. If you continue to pursue your legal options with only that much time left, you have placed additional turmoil in the final hours that perhaps you could use to try to create some peace.
QUESTION: (OFF-MIKE)
NIGH: It will be in essence the same ones he was required to make prior to the execution date on May 16th. He has family and friends that he must say his good-byes to. The kind of introspection and psychological preparation he has to go through, only he could know, and other people in his position can know.
QUESTION: (OFF-MIKE)
NIGH: Well, in terms of communicating his decision to us, it came clearly after the Tenth Circuit's decision today. Whether he made up his mind prior to today, I cannot tell you. Because of course we did not know what the decision would be, and he did not know what the decision would be.
QUESTION: Did you talk to him by phone right after the decision?
NIGH: Yes.
QUESTION: Did you discuss with him possibly seeking a presidential clemency?
NIGH: Yes, we certainly did. He said previously in reference to clemency that he was not going to make what he considered, probably accurately, would be a meaningless gesture. He did not expect President Bush to spare his life and he wasn't going to ask President Bush to spare his life. And ultimately, as his lawyers, although we urged him to pursue every option, it was finally his decision not to do that.
QUESTION: (OFF-MIKE)
DOBBS: You're watching and have been listening to Timothy McVeigh's lead attorney Robert Nigh announcing to the press that in fact Timothy McVeigh has decided not to seek a stay of execution from the United States Supreme Court, which was really his only option after the Tenth Circuit Court of Appeals in Denver denied his stay for -- his request for a stay of execution, that process in just about 7 hours from the time they received to the motion.
We'll go to Greta Van Susteren, who is our legal analyst here at CNN.
Of course, at this juncture, Greta, let me ask you, it almost sounded at one point as if Robert Nigh was acknowledging that they went ahead with the appeals process despite a reluctant client?
GRETA VAN SUSTEREN, CNN LEGAL ANALYST: It does that way, Lou. Most defendants at this stage know that the end is very near. It's really hard when you this far down the litigation to persuade a court to give you a postponement on an execution. I mean, it's pretty obvious.
Plus, you have the problem here, there wasn't powerful information in the 4100 or 4400 pages. The defense conceded -- what the defense said is that we need time to study it and investigate it. But of course, the court, the trial court judge didn't give him that. Once the trial court judge ruled against McVeigh, the lawyers and Timothy McVeigh knew it was a very slim chance the United States Court of Appeals would help him.
And that there was even a slimmer chance the United States Supreme Court would suspend this execution. It takes five votes in the United States Supreme Court to do that, and it seems very unlikely the makeup in this court he would ever get it.
DOBBS: What you're saying is, that once the trial judge Richard Matsch had made his decision, it was unlikely -- far more difficult to win on the -- with the appellate court; is that correct?
VAN SUSTEREN: That's right, Lou. I actually covered the trial for CNN, it wasn't televised; it was a federal trial. And Judge Matsch is a very firm, strong judge; but he's very defense oriented, in the sense that he gives the defendant every single right he possibly can during trial. Many people thought -- I thought this as well -- is that out of abundance of caution that he would suspend the execution date.
Not necessarily get rid of it altogether. But, at least give the defense lawyers time to investigate. So, it came as a huge surprise for most people who done death penalty lawyers, and to many of us who had watched the trial and watch Judge Matsch.
DOBBS: The Tenth Circuit Court of Appeals making their decision within 7 hours of having received the motion. Timothy McVeigh apparently having made his decision less than an hour of having been told by Robert Nigh, his attorneys, his request for a stay had been denied. Is that an unusually accelerated pace for this kind of appeal and request?
VAN SUSTEREN: Not really, Lou, because these are all done in emergency basis. In fact, every time there's an execution in this country lawyers are scrambling and running to the United States Supreme Court, including filing documents after midnight, trying to get stays of executions. It's a very fast pace, when you approach the execution date, because the lawyers are trying everything, trying to argue every single issue, going to every single judge, every single court you possibly can.
At the same time, you're trying to counsel your client, because your client is obviously -- reached the ultimate experience, being executed by the state or federal government in this instance. So, you have a two-fold job. But you're madly trying to get some judge to postpone or in some instance simply to throw out the execution.
DOBBS: That process has apparently ended. Robert Nigh, the lead attorney for Timothy McVeigh, announcing just moments ago that his client will not seek a stay of execution from the U.S. Supreme Court. Greta, thank you very much. Greta Van Susteren, our legal affairs expert at CNN.
We will go now to Gary Tuchman in Oklahoma City -- Gary?
GARY TUCHMAN, CNN CORRESPONDENT: Lou, this is the news that most of the family members of the victims and survivors wanted to hear. With us right now is one of the men who prosecuted Timothy McVeigh during his trial in Denver, the former attorney from Oklahoma City, Patrick Ryan.
Patrick, you learned about the news with us standing here. What is your first impression?
PATRICK RYAN, MCVEIGH PROSECUTOR: I'm pleased. The families have been through enough. the people of Oklahoma and Terre Haute have been through enough. The nation has been through enough. Timothy McVeigh is guilty. He's been proven guilty. He's admitted he's guilty. His lawyers said he was guilty. It's time to get on with what the jury determined.
TUCHMAN: Were you surprised to just hear from his attorneys that he's decided not to fight, not to go to the U.S. Supreme Court. Because we talked yesterday, and theoretically, he could have had a better chance with the U.S. Supreme Court, than with the court of appeals?
RYAN: Possibly, he could have had a better chance, but I don't think it would have been a good chance. I'm not surprised because this is a man who gave up his last appellate price on (UNINTELLIGIBLE) appeals, so he's obviously someone who is not inclined to always follow his lawyer's advice, and in this case I think he's done a favor finally to the nation.
TUCHMAN: Patrick, what do you think about the argument, though, gave up his appeals before, he didn't know about these 4,000 pages of evidence?
RYAN: That's true, but he knows about them now. Judge Matsch took all that into account and so did the Tenth Circuit, and they found that he received a fair trial. I think McVeigh knows he received a fair trial. That's why he has not in any way contested his conviction in the last two days, only his sentence.
TUCHMAN: This has been a major part of your life, fighting McVeigh?
RYAN: It has.
TUCHMAN: How are you feeling at this moment?
RYAN: An execution is nothing you'll get excited about; it's not a happy event. It's the culmination of a process that we developed in this country that insures the rights of the accused in a fair trial, a fair hearing, he's received all that. And now, it's time for the jury's sentence to be carried out. TUCHMAN: Patrick Ryan, thanks for joining us.
RYAN: Happy to be here.
TUCHMAN: We appreciate it.
RYAN: You bet.
TUCHMAN: All day long here in Oklahoma City, preparations have been underway for the execution behind me here at the Oklahoma City Bombing Museum where the Murrah building used to stand. Security barriers have been set up; media platforms have been set up for all the news media scheduled to come here for the execution.
This Sunday, a plane will arrive, a government plane to take ten Oklahomans to the execution in Terre Haute to witness it firsthand, and then about 300 Oklahomans will witness it via closed-circuit TV in Oklahoma City.
Lou, back to you.
DOBBS: Gary, thank you. Gary Tuchman in Oklahoma City.
To briefly recap, the Tenth Circuit Court of Appeals has denied Timothy McVeigh's request for a stay of execution. Within an hour of learning that refusal to grant his request, Timothy McVeigh through his lead attorney Robert Nigh announcing he will not seek an appeal to the U.S. Supreme Court.
MONEYLINE will continue in just one moment.
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DOBBS: Well, news that Bristol-Myers Squibb is making its second largest acquisition ever. Bristol-Myers confirming it's paying nearly $8 million for DuPont's drug business. That's part of an aggressive effort to focus on pharmaceuticals. And the deal strengthens aids Bristol's leadership in AIDS and cardiovascular therapies.
Analysts say the notoriously deal-shy drugmaker is now getting much of the cash from its recent sale of Clairol.
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BOB KIRBY, EDWARD JONES: So when you're sitting on that much cash you go out and you buy it. Also, you kind of can view it as a trade between letting Clairol go, and taking on DuPont. And I think that's a fairly good trade for Bristol to make.
(END VIDEO CLIP)
DOBBS: Not much movement in the stocks of either company. The shares ending only fractionally higher. In other corporate news tonight, Boeing confirming its inspectors have found intentional -- intentional -- wire damage on at least seven airplanes. The damage uncovered during routine testing of 737's at its Renton, Washington plant. The FBI is now investigating.
Franchising firm Cendant says it's in talks to buy travel services firm Galileo. The two companies are reportedly considering a cash and stock deal that would be worth about $3 billion. On the news, shares of Cendant dropped nearly 40 cents, Galileo up more than 50 cents.
WorldCom shareholders approved the company's plan to issue a tracking stock for its consumer business, MCI Group. Its faster- growing data and Internet business will continue to trade under the WorldCom ticker. Both stocks begin trading tomorrow. The company is hoping the decision will boost its sagging share price. WorldCom has dropped more than 60 percent from its 52-week high.
Well, the economy could use a boost. The government late last month revised first quarter GDP sharply lower to 1.3 percent. Corporate profits declined in back-to-back quarters. That's the first time that's happened since the Russian financial crisis. My guest tonight, a top adviser to the president, who says the tax cuts and Fed interest rate cuts should help this economy but not until the end of the year.
Glenn Hubbard joining us in his first television interview, I'm told, as Chairman of the Council of Economic Advisers. It is good to have you with us, Mr. Chairman.
GLENN HUBBARD, CHAIRMAN, COUNCIL OF ECONOMIC ADVISERS: Thanks, Lou, it's good to be with you.
DOBBS: Let me ask you, we reported earlier here on MONEYLINE a range from private economists of the effect of tax cut and those tax refund checks coming back, going anywhere from .01 percent to 1 1/2 percent. Can you strengthen out those economists and the impact on GDP?
HUBBARD: Well, Lou, I expect there to be quite a significant impact on GDP toward the end of the year. It's important to understand that this isn't a one-time rebate. This is a prepayment on a permanent tax cut.
So I think you'll see a fairly substantial impact on GDP toward the end of the year, more along the lines of the higher side estimates that you reported earlier.
DOBBS: And in terms of the president's energy proposals that will, of course, take time, and perhaps it will be a more difficult struggle. One would assume so, with the Democrats firmly in control of the Senate.
But energy prices will continue to be a concern to nearly all of us. What do you expect the impact of energy to be on the economy itself?
HUBBARD: Well, energy price increases have played a big role in the growth slowdown that we've been experiencing. I think this summer, the energy price increases that we'll see will also be driven by supply problems here in the U.S. -- refinery problems, electricity generation problems, not so much just input prices. So I think the need to act on the president's energy plan is real and present.
DOBBS: And while the administration characterizes the current energy situation, if I may, as a crisis, recent forecasts have gasoline prices, for example, actually projected to go down through the summer months. What do you make of that?
HUBBARD: Well, again, the sense in which we have a problem is that, regionally this summer, we may see some spikes in gasoline prices. And we have a long-term problem for our economy unless we have upgrade our refining capacity. So in that sense, there's still a need for urgency.
DOBBS: Well, certainly, urgency the watchword at the Fed, where there have been five rate cuts in less that five months; 250 basis points. Is it enough? Is it soon enough to spark this economy to a more vigorous level of growth?
HUBBARD: Well, I don't want to comment on monetary policy, but I can say this: that the Fed's interest rate cuts thus far will have, again, a very stimulative effect on the economy by the end of this year. And that, in concert with the president's tax bill, which he signed into law today, should be good news for the fourth quarter.
DOBBS: And any prospect in your mind of recession in the next year?
HUBBARD: I don't see a recession in the next year. I think the next two quarters will be quite sluggish growth, but I don't see a recession.
DOBBS: Well, Mr. Chairman, thank you. And I just want to -- as it was your first television interview, give you the opportunity, at least, to comment on Fed policy, which you declined, and understandably so.
Glenn Hubbard...
HUBBARD: Thanks, Lou.
DOBBS: ... thanks for being with us, chairman of the Council of Economic Advisers.
We'll continue in just one moment.
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DOBBS: In tonight's "Sectors Report": Biotech StemCells today winning two new patents related to its work in treating ailments such as Parkinson's disease. Chiron raising its war chest; raising $400 million in a convertible bond sale. Also today, Prudential raised its price target on Human Genome Sciences, saying it has several promising new products.
StemCells and rival ASTM among the biggest percentage gainers on the Nasdaq as well. Chiron and Human Genome ended the day, actually, lower.
Coming up next here: a battle over deregulation and a possible shortage in California. We're not talking about electricity, power and energy but, rather, water. Stay with us.
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DOBBS: As we reported to you, within the past hour Timothy McVeigh deciding that he will not seek relief from the U.S. Supreme Court following the 10th Circuit Court of Appeals' decision to deny his request for a stay of execution. He is, of course, scheduled to die by lethal injection Monday.
We're going now to Gary Tuchman in Oklahoma City, where he is with one of the family members of a bombing victim.
TUCHMAN: That's right, Lou; 168 people were killed when the Murrah Federal Building was bombed on April 19, 1995. One of them was Carrie Lenz. She was 26 years old, she was 6 months pregnant with her first baby. And with us right now is the mother of Carrie Lenz, Doris Jones.
Doris, thanks for joining us.
DORIS JONES, MOTHER OF BOMBING VICTIM: Hi, you're welcome.
TUCHMAN: How did you feel when you heard that Timothy McVeigh is no longer going to fight and is going to die Monday?
JONES: Shaky. Kind of -- kind of excited but nervous. I've got, like, butterflies. I'm a little shaky about it.
TUCHMAN: I mean, this is very important to you, isn't it?
JONES: It is important. I'm tired of -- of going through it again and again and again. It's, you know, time for this to be over and for me to be thinking of something else besides that.
TUCHMAN: A few minutes ago, we interviewed one of the prosecutors, Patrick Ryan. You saw him after the interview, you gave him a hug, what did you say to him?
JONES: I told him I was very proud of him. He said that was quite an announcement. I said: "Oh, my gosh, it was." You know, it's been a long time, and I told him I thanked him for everything he did for us. And he said he did it, you know, for the victims.
TUCHMAN: Final question for you, Doris, will you be watching the execution Monday?
JONES: I am planning on it, as of right this minute. Of course, I was all geared up on May 16, and I haven't had really had -- I haven't -- I try not to think about it, because I didn't want to be disappointed or -- I hate saying that. But you get yourself psyched up, and then to have that stopped again, you're emotions just keep going up and down. So, I'm off tomorrow, so I will probably have to think about it then.
TUCHMAN: Doris Jones, thank you for joining us.
JONES: Oh, thank you so much.
TUCHMAN: We appreciate your time.
JONES: Thank you very much.
TUCHMAN: Doris will be one of about 300 people who will watch the closed-circuit viewing of the execution at a jail facility here in Oklahoma City, near the city's airport. Lou, back to you.
DOBBS: Gary, thank you very much. Gary Tuchman from Oklahoma City.
We're going to continue with MONEYLINE in just a moment, right after this commercial break.
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DOBBS: Well, some good news for Californians. State official today reported wholesale electricity prices are actually moving lower. Spot prices are now below $95 per megawatt hour. That compares to nearly 300 on average during the first quarter.
While there is hope that the power crisis may be abating, state residents may now be facing a different sort of shortage: water. Casey Wian looks at a fight pitting private companies against the state water utilities.
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CASEY WIAN, CNN CORRESPONDENT (voice-over): More than 70 percent of rain in California falls in the north, yet 80 percent of the demand for water is south of San Francisco Bay. Now, to quench the thirst of a growing population, a private water market is emerging, one that takes surplus water from wet areas and redirects it to state's growing cities.
JEANNIE JONES, CALIFORNIA DEPARTMENT OF WATER RESOURCES: California receives enough precipitation annually to meet all of the state's needs. However, the situation is such that much of the water supply is not located where people wish to live, or where agricultural crops are growing. So therefore, we have a problem of maldistribution of water supplies.
WIAN: For Michael George, CEO of Western Water Company, maldistribution is a business opportunity.
MICHAEL GEORGE, CEO, WESTERN WATER: Bringing into the balancing of water over time from place to place, from one use to another, is much better handled by independent, voluntary, price-sensitive decision between willing buyers and willing sellers.
WIAN: But in order to get the water from remote areas to cities, it must pass through the state water project, a network of rivers, canals, aqueducts and others plumbing that's own by public utilities.
In Sacramento, lawmakers are considering a bill that would set a price for doing that at rates critics say are too cheap. Without enough money to cover their costs, utilities warn the bill could lead California into a deregulation disaster similar to electricity.
RON GASTELUM, CEO, METROPOLITAN WATER DISTRICT: What we've seen in energy deregulation is the same promises that were made about more supply and cheaper supply. Didn't come true there, and they won't come true in water deregulation as well. And the reason is, water is a public resource. It's not a commodity. And when you try to rely upon a market, market distributes according to profit.
WIAN: Western Water argues that Metropolitan Water District is trying to maintain its monopoly on Southern California water, and that private companies could guarantee adequate supplies for years to come, at a fraction of the cost.
(on camera): The water bill will make its way through the state legislature this summer, likely against the backdrop of rotating blackouts, a constant reminder for lawmakers of the state's last big move toward deregulation.
Casey Wian, CNN, Financial News, Los Angeles.
(END VIDEOTAPE)
DOBBS: And now, a look at some of your comments to us here at MONEYLINE. Last night, we reported to you that in California, some oil refineries may have to cut production on gasoline. Jeff wrote us, quote: "If you shut down a refinery, it takes about one week to bring it back up. You could do it in a couple of hours if you can tolerate having the refinery explode every third or fourth try. At $1 billion a pop, maybe you'd take your time."
Well, Don also questioned the California energy crisis, offering his views on conservation. He says he's amazed that during an energy shortage, no one, quote, "mentions that probably at least 95 percent of office and business buildings have all their lights on all night."
And finally, from Fort Lauderdale, quote: "It's refreshing to see Lou back on the air. Welcome back, sir."
Please, no "sir." It's Lou, and it's great to be with you. Thanks for being with us. We look forward always to hearing from you. Our address is moneyline@cnn.com.
And that's MONEYLINE for this Thursday evening. We thank you for being with us. I'm Lou Dobbs. Good night from New York. "CROSSFIRE" is next.
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