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Lou Dobbs Tonight

New Saddam Photographs Released; North Korea Willing to Discuss Nuclear Program

Aired August 01, 2003 - 18:00   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.


JAN HOPKINS, CNN ANCHOR: The unemployment rate dropped last month, but nearly half a million people stopped looking for a job. No regrets and no remorse from Saddam Hussein's daughters. They say he was a loving father. "Selling America": how celebrities are cashing in at the expense of jobless actors in the advertising industry. And what could be the worst movie of the year, "Gigli," even ITS high- profile stars, Ben Affleck and Jennifer Lopez, can't save it from the critics.
ANNOUNCER: This is LOU DOBBS TONIGHT for Friday, August 1. Sitting in for Lou Dobbs, Jan Hopkins.

HOPKINS: Good evening. I'm Jan Hopkins. Lou has the night off.

Tonight: new leads in the hunt for Saddam Hussein. U.S. troops captured what they call two important associates of the former regime. Central Command also issued new images of what Saddam may look like now. But there was defiance in a new audiotape attributed to Saddam.

Pentagon correspondent Barbara Starr has our report -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Jan, hello to you.

Well, indeed the U.S. Central Command late today made public five digitally altered photographs that they have already distributed to their troops in Iraq, trying to give them an indication how Saddam Hussein might look after months on the run.

We're going to show you these five photographs. We're going to start off with the first one, which shows Saddam with a full beard. Then, another photograph shows him with a gray, bushy mustache. Then there's one that shows him without any of his trademark mustache that the world has come to know for so many years. Another one shows him in a traditional Arab headdress. And then, finally, there's one that shows him with salt and pepper hair instead of the full white hair.

Now, none of these, you notice, are terribly radical. They're just meant to give the troops an idea of how Saddam might look, because, you'll remember, when his sons were finally killed, we saw that they had changed their appearance. There's a belief Saddam might be changing his. And his sons, we now know, moved around in a garbage truck in the final days before they were found by U.S. forces. The view is, Saddam may be moving around in civilian vehicles.

But there is another series of sketches, if you will, that we are not going to see. We have learned that the CIA has developed a series of artists' sketches it is distributing very quietly to its own operatives in Iraq and to special forces perhaps, sketches that show Saddam looking radically different, looking haggard, with long hair, and again without a mustache.

And, as you say, today in Iraq, the hunt continues. There were more raids in Tikrit, some loyalists captured, U.S. military assessing who those people are, how close they might have been to Saddam, and whether this is further chipping away at the security apparatus that has been surrounding him. And now, again, the U.S. government says late today, that latest audiotape, they do believe again it is Saddam's voice, another audiotape from Saddam where he tells the Iraqi people to be patient. He says that God is on the side of the faithful.

But I must tell you, Jan, the U.S. not terribly fussed or concerned about these audiotapes. They say they expect more of them, that these audiotapes are basically Saddam's final weapon before the U.S. catches up to him -- Jan.

HOPKINS: Barbara, what are they saying about how close they think they are to getting Saddam?

STARR: Well, I must tell you, while the soldiers on the ground, of course, are very enthusiastic and telling people they believe they are hot on his trail -- and they genuinely believe that and they probably have reason to believe it -- they're getting a lot of good leads, a lot of good intel -- people here still very cautious, very watchful, saying they don't have him yet and it could still be some time, continuing to chase him.

But, as Don Rumsfeld always says -- and we repeat and quote him -- they don't have him until they have him.

HOPKINS: Thank you, Barbara Starr, at the Pentagon.

Saddam Hussein's daughters faced the cameras for the first time today since they went to exile in Jordan. There was no regret or remorse for the suffering that Saddam Hussein inflicted on Iraq and its people, only concern for the safety of their father.

(BEGIN VIDEO CLIP)

RAGHAD HUSSEIN, DAUGHTER OF SADDAM HUSSEIN: He was a very good father. Loving. Has a big heart. Loved his daughters, sons, grandchildren. He was very good father.

(END VIDEO CLIP)

HOPKINS: Not once did Saddam Hussein's daughters express any sympathy for the tens of thousands of Iraqis who were killed by their father's regime.

President Bush today welcomed North Korea's willingness to hold six-nation talks about its nuclear weapons program. North Korea's decision was a significant change of policy. It had previously insisted on direct talks with the United States alone. White House correspondent Chris Burns has the story -- Chris.

CHRIS BURNS, CNN WHITE HOUSE CORRESPONDENT: Well, hello, Jan.

This might sound like shape-of-the-table wrangling during the Paris peace talks during the Vietnam War, but, really, there is significance to this. And why? Because President Bush says that the last bilateral agreement between the U.S. and North Korea over North Korea's weapons program failed. It collapsed. The president would like now to involve what he calls the neighborhood, the other countries, Russia, China, South Korea, Japan, to bring pressure to bear on the North Korean regime of Kim Jong Il, who has been insisting that he talk only with the Americans.

At this point, Kim Jong Il has been pressured by the countries in the region to come to the table. The question is when. But President Bush is very optimistic.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We'll see how the dialogue goes. We fully understand the past. We're hopeful, however, that Mr. Kim Jong Il, because he's hearing other voices, will make the decision to totally dismantle his nuclear weapons program, that he will allow there to be complete transparency and verifiability. And we're optimistic that that can happen.

(END VIDEO CLIP)

BURNS: Now, the Stalinist regime of Kim Jong Il quit the nuclear proliferation treaty last year, kicked out nuclear weapons inspectors, and started reprocessing spent nuclear fuel rods into nuclear weapons- grade plutonium, being able to build more nuclear weapons.

The U.S. believes that they already have one or two, but they could build more and possibly even export them. That is why President Bush wants to stop this. Kim Jong Il is demanding that the U.S. and other countries provide more economic aid. And, even, he is demanding a nonaggression pact from the U.S. The U.S. is denying that, but they will be talking about these concerns with the North Koreans.

The question again, when it could be, possibly in September -- back to you.

HOPKINS: Chris, the president is about to take an extended vacation on his ranch in Texas. Is he calling this a working vacation?

BURNS: Well, Jan, this is definitely a working vacation for somebody who wants to be reelected next year. The president even started his vacation early today, going golfing. He leaves tomorrow for Crawford, Texas, for a month, but he's going to be very busy.

He's going to be going to six fund-raisers in five different states in the Midwest and West. And he's also going to be busy trying to shore up his environmental credentials by going to some national parks, talking about how his policies are promoting the environment. And you look at polls and they don't agree with him -- back to you, Jan.

HOPKINS: Thanks, Chris Burns, at the White House.

BURNS: Thank you.

HOPKINS: The president also spoke about the latest jobs figures. The unemployment rate fell last month to 6.2 percent. But that decline was caused by a large number of people who gave up looking for work.

Kitty Pilgrim has our report.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): More than nine million people are out there looking for work. Sure, there were fewer of them looking in July, but that is not good news. Economists say some just gave up and are no longer counted in official statistics.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: Fewer people are getting into the game actually looking for work. And that kind of discouragement can lead to a lower unemployment rate. It doesn't mean the labor market is tightening. It just means that there are fewer people actually seeking work.

PILGRIM: Companies cut back on the number of workers on the payroll for the sixth straight month; 44,000 jobs were cut in July. Economists were actually predicting that companies would add jobs. Well, for the most part, that just didn't happen.

For example, 12,000 jobs were cut in food and grocery stores. Jobs in the transportation industry, particularly the airlines, fell by 9,000. Manufacturing, where employment has been falling continuously for the last three years, lost 71,000 jobs in July. Also, companies cut back on the number of hours people were working. The average work week is about 33 1/2 hours in July, a signal of economic weakness.

ANTHONY CHAN, BANC ONE INVESTMENT ADVISORS: When you lose hours, that's not a good thing, because that really is also equivalent to loss of labor input. And it tells you that things are still sort of soft.

PILGRIM: All this is not playing well in the market or in Washington. President Bush made a promise over the situation.

BUSH: This administration focuses on lives. And when there are people looking for work and they can't find a job, it means we're going to continue to try to put pro-growth, expansive policies in place.

(END VIDEOTAPE)

PILGRIM: Now, there are a couple of bright spots. Companies are adding temps the third month in a row, 42,000 jobs in July. And, also, the travel industry added 11,000 jobs, mostly in hotels -- Jan.

HOPKINS: Sometimes, those temporary jobs become permanent.

PILGRIM: That would be one way to go. And, in fact, if you get your foot in the door in a company any way you can, it would be probably better than keep looking.

HOPKINS: Thanks, Kitty Pilgrim.

America's closest ally in the war against Saddam Hussein was British Prime Minister Tony Blair. And today, a judge investigating the apparent suicide of British weapons expert David Kelly said he will call Blair as a witness in his inquiry. At stake are the reputations of Blair and the BBC, which claims the government exaggerated the case for war.

Robin Oakley reports from London.

(BEGIN VIDEOTAPE)

ROBIN OAKLEY, CNN CORRESPONDENT (voice-over): The judge set out 38 episodes, including the controversial story by BBC journalist Andrew Gilligan, for which Kelly was claimed as the source, in the list, exchanges between the BBC and the Defense Ministry which led to Dr. Kelly's outing and exposure to an investigative committee's grilling.

Lord Hutton said he wanted all 38 items fleshed out in greater detail. The witnesses he'll be calling to help him do that fleshing out and eventually to apportion blame include Tony Blair and his Downing Street communications director, Alastair Campbell, Defense Secretary Geoff Hoon, the BBC reporter Andrew Gilligan, and Gavin Davis, the chairman of the BBC governors.

Reputations and jobs are at stake. And everything possible, Lord Hutton promised, will be in the public domain.

LORD HUTTON, HEAD OF THE INQUIRY: It is my intention to conduct this inquiry in public, unless considerations such as those of national security require me to sit in private. Unless such considerations arise, it is important that the public should know every word of evidence which is spoken at this inquiry and should know the full contents of every document which is referred to in evidence.

OAKLEY (on camera): Lord Hutton's thirst for detail and the exhaustive program he has set out makes it unlikely, say legal experts, that his inquiry can report before November. That's later than Tony Blair had hoped. But Britain's prime minister will be relieved that Lord Hutton hasn't indicated any plans to widen his inquiry into the government's use and alleged misuse of intelligence information in making its case for war.

Robin Oakley, CNN, London.

(END VIDEOTAPE) HOPKINS: More problems tonight for Russian President Putin in the crisis over Chechnya. At least 35 people were killed when a suicide bomber blew up a truck in a Russian military hospital in a town near Chechnya. Tonight, the White House said no cause whatsoever can justify such an attack.

And in Turkey today, a bomb went off in the capital, Ankara, as police officers investigated a suspicious bag; 16 officers were wounded, two seriously.

Still to come tonight: Kobe Bryant prepares for his day in court. We'll have a live report from Eagle, Colorado.

And then:

(BEGIN VIDEO CLIP)

VICTOR JOHNSON, ASSOCIATION OF INTERNATIONAL EDUCATORS: DHS has performed more gender-change operations than every doctor in the United States.

(END VIDEO CLIP)

HOPKINS: The Department of Homeland Security cracks down on student visas, but the system is flawed. Jeanne Meserve will explain.

And gotcha: A tech-savvy teen helps cops nab a bad guy -- that story and a lot more ahead.

(COMMERCIAL BREAK)

HOPKINS: Anthrax investigators have come up dry again.

The FBI drained a Maryland pond looking for clues into last year's anthrax attacks. All they found was some junk. The search was prompted by the discovery of a plastic box in the pond last winter. The anthrax attacks killed five people and sickened 17 others. To date, no one has been arrested.

The anthrax attacks began a month after hijacked airplanes were used to attack the United States. Two of the hijackers arrived in this country on student visas. A new screening system may have stopped them. But glitches in that system could prevent it from ever working effectively. Meanwhile, air travelers are facing closer scrutiny than ever.

Jeanne Meserve has the report.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): Two of the September 11 terrorists entered the U.S. on student visas, but were not going to school. Theoretically, the new Student and Exchange Visitor Information System, or SEVIS, might have caught that and stopped them. ASA HUTCHINSON, UNDERSECRETARY, DEPARTMENT OF HOMELAND SECURITY: We'd know that they were out of status as students, and, therefore, we'd have taken steps to expel them from the country.

MESERVE: By Friday, U.S. schools must enter basic information about their international students in SEVIS' centralized computer system. Those records will be used to screen student visa holders at ports of entry before the students are let in.

If the visa holder then doesn't arrive at school or attend classes, the school tells SEVIS and an investigation begins. But will it work? So far, schools say, computer glitches have made it a disaster.

JOHNSON: DHS has performed more gender-change operations than every doctor in the United States, because you enter somebody as a male and they print out as a female.

MESERVE: Schools worry, the system will crash completely in the next few weeks, when 600,000 students come pouring into the country for the new semester. To deal with anticipated problems, Immigration and Customs is opening a command center. But, even if the system works, will it be effective? The Department of Homeland Security admits, as of now, it does not have the resources to investigate and enforce.

HUTCHINSON: It's going to be a challenge, and we're building that capability.

MESERVE: Some believe the system pays disproportionate attention to students, who account for only 2 percent of temporary visa holders.

FANTA AW, THE AMERICAN UNIVERSITY: This would not be, from my perspective, a dent in being able to combat terrorism.

(END VIDEOTAPE)

MESERVE: And schools ask, if this and other security measures drive international students away, some of whom come to know and love the U.S., isn't that a national security problem, too? -- Jan.

HOPKINS: Good point.

Jeanne, is there any decision tonight on visas for people in transit, simply traveling through the United States? That's been an issue this week.

MESERVE: We know they are examining that policy. We expect some modifications to be made. And a number of people in the industry expect some changes, but nothing has been announced at this point in time.

However, there has been some change in security directives. Those transit passengers are being subjected to more scrutiny, a more careful look being given specifically to their shoes and to their clothes and to their electronics. You might remember that that aviation advisory about possible hijackings that went out earlier this week indicated that those sorts of items might be weaponized by any possible hijackers.

HOPKINS: Thanks very much, Jeanne Meserve, in Washington.

And, in New Jersey, modern technology did work and helped prevent a horrible crime. Camera cell phones have only been around in this country for about a year, but a 15-year-old boy used his to photograph a man who tried to lure the teen into his car. Those photos led to the arrest of the would-be assailant, who is now in jail.

New developments tonight in the Kobe Bryant case: Late yesterday, a judge said that Bryant must appear in court on August 6. There are also questions about one of the key investigators in the case.

Gary Tuchman is in Eagle, Colorado, with the latest -- Gary.

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Hello to you, Jan.

Five days from now, Kobe Bryant will be appearing in this building behind me, the Eagle County Justice Center, it's officially called, his initial appearance in court. His lawyers went to court yesterday to try to tell the judge, please don't make Kobe Bryant appear. The judge refused. So Bryant will be here for what should be a short hearing, but it will get a lot of public attention. He'll be read the charges. He'll be read his rights. And it will probably take five or 10 minutes, and then he'll be allowed to fly back to California.

Now, among the items we're investigating, CNN has learned that Kobe Bryant placed a 911 emergency call from his phone on the morning of July 3. Now, we have no indication, no evidence that this is related to the sexual assault case. However, at the very least, the timing is notable, because he made this call just hours after he came back from Colorado, where he provided DNA testing here in Colorado, flying back, and then making the call.

Now, authorities are telling us, in Newport Beach, California, they got a 911 call. There was nobody on the line. They called the number back. Kobe Bryant answered. Officials say Kobe Bryant acknowledged making the call earlier. They were told to come to the house, the EMS officials, because a female needed medical attention. We are not being told the female was his wife, Vanessa. We do know there were three people in the house, according to the EMS, and the Bryants do have a young baby, so three people who were there.

They got to the scene. They provided some medical attention to the woman, who they say was lying in bed, but she said she did not need to go to the hospital. So the officials in Newport Beach say -- quote -- "Further transport was refused." They were there for a total of 23 minutes.

Now, the reason the timing is notable is because this alleged crime happened on June 30. The woman, the 19-year-old alleged victim, then went to the hospital on July 1. Kobe Bryant then went to the hospital on July 2, provided the DNA testing, then flew back to California. This call would have then happened a few hours later in the very early morning hours, the late night of July 2 the early morning of July 3.

And then, on July 4, he came back here to Colorado, where he was arrested, his picture was taken, he posted bond, and then flew back again to California. And once again, the next time he'll be here is August 6 this Wednesday, for his first appearance in court -- Jan, back to you.

HOPKINS: So what's the thought about this?

TUCHMAN: Authorities in Newport Beach, first of all, aren't telling us if they know if there's a connection or even if they care if there was a connection. Their job was to provide medical treatment.

But the fact was, at the very least, it's very coincidental that this man, whatever happened, went through all these things over a period of a few days and then made a call to 911, which is unusual for any family, just hours after he got back from providing DNA testing.

HOPKINS: Gary Tuchman in Eagle, Colorado, thank you.

When we return: political races from California to the White House picking up some familiar faces. Senior political analyst Bill Schneider, a familiar face, will join us.

And then our series of special reports on "Selling America" continues tonight with celebrity exposure and overexposure.

Plus: the future of advertising. Author Joe Cappo will be our guest.

Also ahead: A tax-free shopping spree, it's a trend that's catching on.

(COMMERCIAL BREAK)

HOPKINS: Still ahead: Senator Springer? It could happen. It's just one of many odd possibilities on the political landscape right now.

Senior political analyst Bill Schneider will join us next.

(COMMERCIAL BREAK)

HOPKINS: Nearly a dozen Texas Democrats are still on the run tonight. The 11 state senators are holed up in New Mexico, still ignoring pleas from Texas Governor Rick to come home. The Democrats are protesting Republican plans to redraw congressional districts. They're being guarded by New Mexico State Police because of concerns that bounty hunters have been hired to take them home.

A number of developments on the national political scene: Democrats reportedly are pressuring former Vice President Al Gore to make another run for the White House. And a controversial figure from American pop culture is said to be considering a return to politics.

Senior political analyst Bill Schneider joins us now from Washington with more.

Bill, let's talk first about the presidential race. Al Gore being drafted, what's the likelihood, and why?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, it doesn't come from Al Gore. He's absolutely denied any interest in running. He said he wouldn't run about -- almost a year ago. And it's not from his people. It's from anxious Democrats, who are worried that the Democrats don't seem to have a front-runner in this race.

And even worse, from some of their points of view, the front- runner may be Howard Dean. If Howard Dean from Vermont ends up beating Dick Gephardt in Iowa and then a week later beating John Kerry in New Hampshire, Howard Dean might be unstoppable. And a lot of Democrats -- not all, but a lot of Democrats -- think, well, he's a sure loser, because if they nominate Howard Dean, then the campaign would consist of refighting the Iraq war. And a lot of Democrats say: We don't want to do that.

So they're trying to find a candidate. And they're even looking at Al Gore.

HOPKINS: Who else might be drafted?

SCHNEIDER: Oh, they talk about Hillary Clinton, wistfully, as someone they'd love to see run. But she too has said she doesn't intend to run, she will not run. She pledged to the voters of New York that she wouldn't run. I think that's all blowing smoke from the point of view of the Democrats who are talking about her. I don't think she's going to run. And I don't think Gore's going to run.

I think the only option, if people want to stop Dean, they've got to gather behind some candidate. And the problem is that the establishment, so to speak, the Democratic insiders, right now are divided principally between three candidates, Dick Gephardt, who has a lot of union support, John Kerry, and -- who else is there? Kerry, Gephardt, and...

HOPKINS: Edwards?

SCHNEIDER: Lieberman, Joe Lieberman, who was on the ticket with Al Gore.

HOPKINS: Let's go to California, no shortage of candidates there, and some interesting ones.

SCHNEIDER: You have over 200 people who have picked up papers. They haven't all filed, but they've picked up papers indicating they might run, some of them with interesting names, someone named Michael Jackson, a couple of people named Gray Davis, the same name as the governor. It's very easy to run in California. You need 65 signatures and $3,500 and you're a candidate. You don't even have to run for a party nomination. And whoever gets the most -- the largest number of votes -- you don't need a majority -- wins. And with possibly 200 candidates on the ballot, that could be a very easy thing to do.

HOPKINS: Including Larry Flynt?

SCHNEIDER: Larry Flynt, who claims to have a little bit of a political standing, because he's a civil libertarian, a free speech advocate. He also, of course, is a famous self-described smut peddler, the publisher of "Hustler" magazine, he's running. Does he have a chance? I mean, is this a joke?

Well, look, if there are dozens and dozens of candidates on the ballot, maybe 90 percent of California voters said, I won't say -- I will never in a million years vote for Larry Flynt and he may have only 10 percent of the vote. But if that 90 percent who would never vote for him are divided between 10 or 15 candidates, sure, he has a chance.

HOPKINS: And Arnold Schwarzenegger, what's his decision, do you think?

SCHNEIDER: Well, we don't know. The indications from California are that he's likely not to run. His wife, Maria Shriver, is said to be concerned about security. They have four children. She's a Kennedy, of course. And all Kennedys are very security-minded in politics.

If he decides not to run, he probably will announce it next week on the Jay Leno show, which leaves a lot of people to say maybe all of this was just a ploy to try to promote his current movie.

HOPKINS: Mr. Traficant, the congressman from my old district in Ohio, talking about running for president from jail.

SCHNEIDER: That's right, not for governor of California, but for president. He's going to run against the Democratic Party. He thinks it's got too many socialists in the party. He's a bit of a joke also. But running for president, of course, a very different business from the crazy rules for running for governor of California -- not a chance in the world.

But he would add a little bit of, shall we say, colorful commentary to this race.

HOPKINS: That's for sure.

Thanks very much. Bill Schneider, have a good weekend.

SCHNEIDER: Sure. OK.

HOPKINS: When we return: our series of special reports, "Selling America." Tonight: celebrities hawking their own images -- that story and the future of advertising. Joe Cappo, the author of a book by that name, will join us.

And then, wanted: jobs. Stocks fall and a weak employment report. Christine Romans will have the market for us.

And:

(BEGIN VIDEO CLIP, "GIGLI")

JENNIFER LOPEZ, ACTRESS: I want to meet your mother.

(END VIDEO CLIP)

HOPKINS: It has been called the worst movie of the century. Peter Viles reports on "Gigli." And we will have the head of BoxOfficeGuru.com to join us.

(BEGIN VIDEO CLIP, "GIGLI")

UNIDENTIFIED ACTRESS: Larry, invite them in.

BEN AFFLECK, ACTOR: I am, ma, all right?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

HOPKINS: Concerns about the economy and the latest employment report sent stocks tumbling. Dow Industrials fell about 80 points. Nasdaq lost 19. The S&P 500 fell 10. Christine Romans is here with the market -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: Hi there, Jan. A down day capped a down week for the market. It was the first down week for the Dow in five weeks. The Nasdaq fell almost 1 percent this week. And the S&P 500 dropped almost 2 percent on the week.

Now, with such a big rally already this year, traders fear that strong earnings and nascent economic growth have already been factored into the market and stocks could be stalling out here. That's what you saw today. Still, the earnings news has been good. We're 80 percent through the earnings season. The S&P 500 companies are reporting profit growth of more than 9 percent, revenue up 4 percent.

Still, after a sizzling July, August got off to a weak start, and that's not so unusual. In the past 15 years August has been the worst month of the year for the Dow and the S&P, and the third worst for the Nasdaq. Now, the bulls hope that this is not the case this time around. They point out that August tends to be strong when bear markets are ending. So we'll watch to see.

HOPKINS: We'll see if the bear market's ending. Thanks, Christine.

ROMAS: You're welcome.

HOPKINS: In tonight's quote, reaction to the jobs report and its effect on economic recovery, quote "this is not the stuff that expansions are made of," that from economist Ed McKelvey. And tonight we continue our series of special reports, selling America celebrities are popping up all over the place these days, in commercials and interviews and in the news. In some cases they're taking jobs away from voice-over actors and models.

(SINGING)

HOPKINS: Look who's in the new Gap ads, Madonna. After a disappointing movie and record, Madonna is taking her act to the Gap.

(SINGING)

HOPKINS: Celine Dion is singing for Chrysler.

MARK TUTSSEL, LEO BURNETT: It's an opportunity for those people to basically produce a pop promo. It enables them to play their music and be associated with that brand. So it's a two-way traffic. It's almost a duet between the music industry and the advertising community.

HOPKINS: Beyonce knowles is on the September cover of Glamour. she joins a host of celebrities taking over where once only models reigned.

CYNTHIA LEIVE, EDITOR-IN-CHIEF GLAMOUR: 10 years ago glamour was doing exclusively models. Once in a long, long while a celebrity would come along on the cover of the magazine, but it was really a rare event. Now we're doing more and more celebrity covers to the tune of about eight, nine, even sometimes ten a year.

HOPKINS: Celebrities like Whoopi Goldberg...

WHOOPI GOLDBERG, ACTRESS: You've been friends for so long you can actually be honest about everything.

HOPKINS: Bruce Willis...

BRUCE WILLIS, ACTOR: The Toyota Tundra out accelerates every other base V-8 truck in its class.

HOPKINS: And Halle Berry....

HALLY BERRY, ACTRESS: So you're that new crispy M&Ms guy, huh?

UNIDENTIFIED MALE: Are you trying to get me killed?

HOPKINS: ... are now doing voice-over work for commercials. Advertisers love it because they can use familiar voices. But it's taking jobs away from voice actors who are already finding it hard to find work.

CARY BERMAN, WILLIAM MORRIS AGENCY: I think that there are fewer jobs out there for voice-over talent as there are for actors as well. If you look at the television arena, you see all the reality programming that's taken over prime-time. And that has really decreased the amount of jobs out there. HOPKINS: Yes, celebrities are everywhere, doing everything and being paid handsomely for it. It's no wonder Brad Paisley's new satire song celebrity is getting a lot of mileage.

(SINGING)

(END VIDEOTAPE)

HOPKINS: Tonight's thought is on the risks of too much celebrity. Quote, "I think there's a danger in overexposure. Just think what happened to Lady Godiva -- she became a chocolate." That from Kenneth Jay Lane.

And we are now joins by Joe Cappo, who wrote a book called "The Future of Advertising." he joins us from Chicago.

Let's start with celebrities, I mean, is there a danger of overexposure and in a year or so we don't want to hear from celebrities?

JOE CAPPO, AUTHOR: Well, there's no question about that. But you have to know that clients right now are desperately trying to get attention in a media world that's just filled with so many options and so many different messages that they're just raising the volume day after day.

HOPKINS: And that's part of the reason why you use the subtle kind of voiceovers from a familiar voice of a celebrity, to try to get attention of the audience, right?

CAPPO: Well, this has been a trend over the last few years, and that is they have stopped largely using announcers, radio announcer voices, and have gone toward actors, who are able to put a little more feeling, maybe a little more sell into the messages, and also have that familiar voice that they might associate with a product or with a service.

And then they create a relationship between the actor or the actress and the product itself, hoping to have a little synergy in terms of selling.

HOPKINS: What else is working?

CAPPO: Well, traditional advertising is not working as well as it used to, and that is television, traditional television, to a large extent, newspapers to a large extent, magazines are inconsistent in their results. But the reason is this whole proliferation of media, 150 or 200 or 300 channels of satellite television, thousands of magazines, all kinds of sponsorships and sales promotion events and things of that sort have created a very cluttered environment for all of us, anybody in the news business as well as those in the advertising business.

So the idea is to get out of that clutter and try to have a good, clean, solid image and a brand that you could project out into the public. HOPKINS; So advertisers are doing other things. They're naming stadiums, for example, as a way to get their name out there. What else?

CAPPO: Well, that's one of the large points that has taken place in the last two or three years, at a point now where about 75 of the professional sports stadiums in the country have named sponsors paying them money.

But there's a second part of that, the sponsor, for example, in the case of Pepsi Cola, putting its name on a sports stadium in Phoenix, also gets the right to be the exclusive seller of soft drinks or beverages in that stadium. So there's a dollar return to some extent in that regard.

HOPKINS: We did a story this week on product placement. That's another thing that we can really see a lot more of in the next few years, don't you think?

CAPPO: Well, actually, there is a system that's on the west coast right now called Wink TV which has the ability to have a product placement on a TV program where you have a set-top box, as you would have a cable box, and when a product that is being placed and paid for in that channel or in that network comes up, you get a signal and you can click on your remote and you can see what the product is and perhaps order it or get a demonstration or have someone call you or something of that line. That's the ultimate so far in product placement.

HOPKINS: So Cappo, Crane (ph) Communications and author of the book "The Future of Advertising".

CAPPO: Thank you.

HOPKINS: And coming up our "CEO of the week". On success and filtering out winning strategies from the losers.

And then one reviewer called the lates Benn Affleck and Jennifer Lopez film a shrill mess. Peter Viles reports on "GIGLi".

And we will hear from boxofficeguru.com, coming up.

And how does a tax free shopping spree sound? It could be coming to a mall near you.

(COMMERCIAL BREAK)

HOPKINS: Our "CEO of the Week" has nearly doubled his company's stock price in only five years. Five years that have been less than rewarding to most stockholders.

Mark Kachur of CUNO is our "CEO of the Week."

(BEGIN VIDEOTAPE)

HOPKINS: (voice-over): Back in 1994, CUNO had top notch filtration technology but a rusty business plan. So the company recruited Mark Kachur to fix it.

MARK KACHUR, CHMN. & CEO, CUNO INC.: The biggest problem was a culture of new product development. There was none.

HOPKINS: Kachur's arrival touched off an era of what one analyst describes as a religious commitment to developing a full pipeline of new products.

KACHUR: We won't develop it unless it has a proprietary and patented position. We don't want to create an after-market for somebody else. So when we lock in that after-market, we can expect to enjoy it for several years.

HOPKINS: The strategy has paid off. Operating margins have nearly quadrupled since Kachur took over. And CUNO's growth rate is nearly twice the industry average.

Kachur moved the company away from selling lower-end products to more sophisticated filter systems with higher margins, particularly for the health care industry.

Shareholders have taken note. The company's stock is up nearly 90 percent in the last five years.

KACHUR: We're heavily compensated on the success of new products. It's part of our culture. Our training is based on new products. And so it becomes a daily activity for us. And it's probably not the case in most of our competitors.

HOPKINS: Kachur and CFO Fred Flynn are the only insiders on a board of seven. The board conducts its meeting in what Kachur calls an environment of open dissent.

KACHUR: I never use the term "my board" because it's not my board. It's the shareholders' board. It's up to the shareholders, and it's up to the board to work closely and represent the shareholders so the shareholders are getting the best possible benefit for their investment.

(END VIDEOTAPE)

HOPKINS: Our congratulations to Mark Kachur, our "CEO of the Week."

And a reminder now to vote in tonight's poll: "What do you think will be the most important issue in the 2004 elections?" The economy and unemployment, homeland security, health care, or the national debt? Cast your vote at cnn.com/lou. We'll bring you preliminary results in just a few minutes.

Shoppers in Georgia are enjoying a four-day holiday of sorts. The state is giving them a break from paying sales taxes. Similar tax-free holidays are catching on across the country, as Sean Callebs reports.

(BEGIN VIDEOTAPE) SEAN CALLEBS, CNN CORRESPONDENT (voice-over): It's time to shop till you drop without dropping any money on sales tax. Well, on most items in Georgia. It's a sales tax holiday just a few weeks before the start of school.

UNIDENTIFIED FEMALE: It's perfect because you do spend a lot between school supplies and clothes and shoes.

CALLEBS: The National Retail Federation says Georgia is one of 10 states that currently gives customers a break on sales tax each year and 17 more states are considering it.

(on camera): These four days will cost Georgia somewhere between 14 and 16 million dollars in lost tax revenue, according to state officials. But they plan on making up some of that money in part because stores will have to spend more money on overtime for their employees and also hire some temporary workers.

That will bring in some extra income tax, but Georgia and other states look at this chiefly as a boost for consumers and retailers.

CHRISTINA OLAUSSON, MALL ASSISTANT MANAGER: Last year, the first tax-free day that we had, which was right before Easter, our traffic was like the busiest shopping day of the year.

CALLEBS (voice-over): There is one slight drawback.

UNIDENTIFIED MALE: It's a double-headed sword there. You go in there to save money and then you end up spending a little bit more than you would want to because of the simple fact that you're saving a little bit on taxes.

CALLEBS: But many say if you're going to spend the cash, why not spend it when you can save?

Sean Callebs, CNN, north Georgia.

(END VIDEOTAPE)

HOPKINS: Still to come, a summer stinker at the box office. "Gigli" is pummeled by pundits. Gitesh Pandya of boxofficeguru.com will join us.

And then your e-mails on buying American as more jobs are shipped overseas.

And funky fragrances. Dirt, snow, and funeral home scented perfumes? Jeanne Moos will have that story when we come back.

(COMMERCIAL BREAK)

HOPKINS: We usually wait until Monday to tell you how the new films have fared at the box office over the weekend, but we're making an exception this week because of the remarkable critical reaction to the new Ben Affleck/Jennifer Lopez movie. To say that the critics hate this movie is a bit of an understatement. Peter Viles reports.

(BEGIN VIDEOTAPE)

BEN AFFLECK, ACTOR: Larry.

JENNIFER LOPEZ, ENTERTAINER: Larry Giggley, right? I saw it on the mailbox.

AFFLECK: Yes, it's pronounced Gigli, but it rhymes with really.

PETER VILES, CNNfn CORRESPONDENT (voice-over): As in really, really bad, the overwhelming critical opinion of "Gigli, " the new romantic comedy starring Ben Affleck and Jennifer Lopez.

"The New York Post" said the dialogue was embarrassing, crude and clueless. Here's a sample.

AFFLECK: Let me tell you something. In every relationship there's a bull and a cow. I'm the bull. You're the cow. Got that?

LOPEZ: Yeah, I've got it. Bull, cow.

VILES: The reviews aren't just bad. They're savage. A new low, says "The Daily News." A stuffed turkey says "The Post."

RUSSELL LEATHERMAN, PRES., MOVIEFONE: People are really jumping on this thing, right? Like, very critic across the country is taking the opportunity to just hammer this movie as hard as they can, maybe because Ben and Jen did so much publicizing of themselves.

VILES: "The New York Times" calls it a hopelessly misconceived exercise in celebrity self-worship has a special badness all its own.

So bad, says the "Atlanta Journal-Constitution, " it verges on the legendary. A disaster of spectacular proportions. A pile of manure.

RICHARD ROEPER, CHICAGO SUN-TIMES: Calling it a pile of manure is an insult to manure everywhere. I don't know why anybody would say such a thing about manure. That's such an insult.

VILES: Legend has it the two stars fell in love while making this movie. Critics say the sparks are missing from the final product.

"USA Today" says Affleck had more chemistry with buddy Matt Damon in "Good Will Hunting." Columbia Pictures did find two positive reviews, but they really had to search. They came from entertainmentstudios.com, which called the movie original. And from a Dallas TV station, which said it was sexy and fun. A random survey showed those to be minority opinions.

UNIDENTIFIED FEMALE: You couldn't pay me to see it.

UNIDENTIFIED FEMALE: Could have been better. VILES: "Gigli" opens today across America. If you want to see it in a theater, you might want to hurry.

Peter Viles, CNN, New York.

(END VIDEOTAPE)

HOPKINS: Joining us with more on the summer box office and some of the all-time worst bombs of the big screen is Gitesh Pandya. He's editor of boxofficeguru.com. But will people go to the movie to kind of watch a train wreck or to see the romance?

GITESH PANDYA, EDITOR, BOXOFFICEGURU.COM: Well, that's one of the hopes that Sony pictures has for "Gigli", opening this weekend. The star power is very good. Ben Affleck, Jennifer Lopez, they actually anchor a lot of commercial hits at the box office. They can both sell tickets. The question is put them together for the first time ever after a year of endless publicity, do people want to see that despite the bad reviews?

Now, the reviews, as we've said, not only are they bad, they're horrendous, one of the worst-reviewed movies of the year. However, I think there will be somewhat of an audience coming out this weekend, maybe just a moderate audience, to see the movie but after that you'll see very large declines at the box office.

HOPKINS: What about some of the other bad movies, the bombs. You know, name some.

PANDYA: Well, one of the notorious films from the '90s we talk about is "Waterworld". People talk about Kevin Costner, an inflated budget of $175 million to make this movie and how did it do at the box office. Many people would be surprised to learn that it was a profitable film despite all of the bad reviews and the bad publicity, about the actor fighting with the director. It grossed about $88 million domestically, but it did about twice as much overseas, and the overseas market was very big for it. About 250 to 260 million worldwide gross plus video revenue made that movie a hit.

However, you also have other films where you have these pop music divas become movie stars. Madonna was in "Swept Away" last year. That did less than 1 million at the box office. Mariah Carey was in "Glitter" two years ago, that was about 4 or 5 million at the box office. So there is a track record of people, especially singers, moving into the movie business and bombing.

HOPKINS: There are some other movies this weekend. "The American Wedding". Is that likely to do well?

PANDYA: Well "American Wedding" does look like it's going to be a hit for Universal Pictures. It was part of a franchise, which has been going since 1999. The first one did about 106 -- $101 million actually at the box office. The next one did $145 million.

This one, "American Wedding" is the third and supposedly final part in the trilogy of "American Pie" movies. It's a crude, gross-out kind of a comedy, and it's expected to be number 1 at the box office this weekend just like many other sequels have opened this summer. But just like most sequels it will probably open pretty big with most of the audience coming this time and then fall away quickly.

HOPKINS; A different strategy, "Seabiscuit". It's opening at more theaters this weekend, and it might actually grow in the next few weeks. Is that right?

PANDYA: I think so. I think this is another one from Universal Pictures. They're having a very good summer. It opened last weekend with about a $10,000 per screen average, which was the best of all movies in wide release. This time they're adding about 400 more theaters across the country. There's good word of mouth.

There's very good reviews, which is more than you can say for "Gigli" this weekend. And so that is the old-fashioned way to make a hit. And this one will be a strong contender throughout the rest of the summer, and I can see it passing $100 million at the domestic box office.

HOPKINS: Thanks very much, Gitesh Pandya. Thanks for joining us.

And when we come back, we'll have preliminary results of the poll tonight plus outrage over excessive pay from corner offices to Hollywood stars. We'll read some of your e-mails next.

(COMMERCIAL BREAK)

HOPKINS: Now the preliminary results of tonight's poll. What do you think will be the most important issue in the 2004 elections? 81 percent of you said the economy and unemployment. 6 percent said homeland security, 4 percent said health care, 9 percent said the national debt.

Now for a look at some of your thoughts. Many of you wrote about our report last night exporting America and our poll question that asked if you'd be willing to pay more for American-made products.

Joe Pane, of California broke it down to a simple equation, "American products equal more plants equals more jobs equals more property taxes, equals better town services equals better house equals better quality of life.

Now if can just fill all of those thoughts with legal American labor we could actually improve the United States."

John from Reno, Nevada, was more skeptical, "Most Americans will say that they are willing to pay more for American made products until they take out their wallets."

And Bruce Reed of Texas asked, "When there is no one but Hamburger flippers and used car salesmen left working, who is going to buy anything?"

We love hearing from you. You can e-mail us at loudobbs@CNN.com. Finally tonight, the sweet smell of success. There is a fragrance company that has won awards for creating some unusual scents. Our Jeanne Moos has details on these funky fragrances.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Instead of getting out of a thunderstorm, smell like your in one.

UNIDENTIFIED FEMALE: My god. It smells like the wet leaves.

MOOS: Instead of sipping a gin and tonic, light one up.

UNIDENTIFIED FEMALE: Gin and tonic.

UNIDENTIFIED FEMALE: Yes.

MOOS: Instead of getting all dirty, do as Actor Alan Cumming does.

(on camera): What are you wearing?

UNIDENTIFIED MALE: I'm wearing dirt.

MOOS: Dirt the scent and now dirt the soap.

UNIDENTIFIED MALE: I like to think of it as soil rather than dirt.

MOOS: A rich earthy smell familiar to any gardener.

UNIDENTIFIED FEMALE: It is the perfume for people not interested in perfume.

MOOS: Christopher Brosius is the co-founder of the Demeter Fragrances, award-winning scents ranging from grass, to snow to angel food.

UNIDENTIFIED FEMALE: That's really nice.

UNIDENTIFIED MALE: I also like (UNINTELLIGIBLE).

MOOS: Now Demeter fans have something new to sniff, room spray, scented candles and soaps. $12 Italian soaps. You can play in the dirt together, you can infuse a room with a childhood memory of a favorite ice cream bar.

UNIDENTIFIED FEMALE: Creamsicle but don't lick it.

MOOS: The thunderstorm candle smells of wet earth. Customers ask for the oddest things.

UNIDENTIFIED MALE: You know, it's the scent when I first turn on my air conditioner in May. And I said, well, that's mildew.

MOOS: But even mildew sounds tame compared to funeral home. UNIDENTIFIED FEMALE: Funeral home confused me because it smells of musty old people, and why would you want to smell like that.

MOOS: Actually, it's composed of white flowers such as lilies. Christopher says his biggest failure was cream corn.

UNIDENTIFIED MALE: It was just revolting.

MOOS: Demeter Fragrances are sold at stories like Anthropologie and at the fashion-planet.com Web site. You might recall the odorific machine in the movie "Harold and Maude."

Roast beef, old book, mown grass. Demeter has done them all.

UNIDENTIFIED MALE: Brilliant roast beef.

MOOS: And now you can have your mouth washed out with dirt.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

HOPKINS: That's our show for tonight. Thanks for joining us. I'm Jan Hopkins for all of us here, have a great weekend. Good night from New York. "LIVE FROM THE HEADLINES" with Anderson Cooper is next.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Discuss Nuclear Program>


Aired August 1, 2003 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JAN HOPKINS, CNN ANCHOR: The unemployment rate dropped last month, but nearly half a million people stopped looking for a job. No regrets and no remorse from Saddam Hussein's daughters. They say he was a loving father. "Selling America": how celebrities are cashing in at the expense of jobless actors in the advertising industry. And what could be the worst movie of the year, "Gigli," even ITS high- profile stars, Ben Affleck and Jennifer Lopez, can't save it from the critics.
ANNOUNCER: This is LOU DOBBS TONIGHT for Friday, August 1. Sitting in for Lou Dobbs, Jan Hopkins.

HOPKINS: Good evening. I'm Jan Hopkins. Lou has the night off.

Tonight: new leads in the hunt for Saddam Hussein. U.S. troops captured what they call two important associates of the former regime. Central Command also issued new images of what Saddam may look like now. But there was defiance in a new audiotape attributed to Saddam.

Pentagon correspondent Barbara Starr has our report -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Jan, hello to you.

Well, indeed the U.S. Central Command late today made public five digitally altered photographs that they have already distributed to their troops in Iraq, trying to give them an indication how Saddam Hussein might look after months on the run.

We're going to show you these five photographs. We're going to start off with the first one, which shows Saddam with a full beard. Then, another photograph shows him with a gray, bushy mustache. Then there's one that shows him without any of his trademark mustache that the world has come to know for so many years. Another one shows him in a traditional Arab headdress. And then, finally, there's one that shows him with salt and pepper hair instead of the full white hair.

Now, none of these, you notice, are terribly radical. They're just meant to give the troops an idea of how Saddam might look, because, you'll remember, when his sons were finally killed, we saw that they had changed their appearance. There's a belief Saddam might be changing his. And his sons, we now know, moved around in a garbage truck in the final days before they were found by U.S. forces. The view is, Saddam may be moving around in civilian vehicles.

But there is another series of sketches, if you will, that we are not going to see. We have learned that the CIA has developed a series of artists' sketches it is distributing very quietly to its own operatives in Iraq and to special forces perhaps, sketches that show Saddam looking radically different, looking haggard, with long hair, and again without a mustache.

And, as you say, today in Iraq, the hunt continues. There were more raids in Tikrit, some loyalists captured, U.S. military assessing who those people are, how close they might have been to Saddam, and whether this is further chipping away at the security apparatus that has been surrounding him. And now, again, the U.S. government says late today, that latest audiotape, they do believe again it is Saddam's voice, another audiotape from Saddam where he tells the Iraqi people to be patient. He says that God is on the side of the faithful.

But I must tell you, Jan, the U.S. not terribly fussed or concerned about these audiotapes. They say they expect more of them, that these audiotapes are basically Saddam's final weapon before the U.S. catches up to him -- Jan.

HOPKINS: Barbara, what are they saying about how close they think they are to getting Saddam?

STARR: Well, I must tell you, while the soldiers on the ground, of course, are very enthusiastic and telling people they believe they are hot on his trail -- and they genuinely believe that and they probably have reason to believe it -- they're getting a lot of good leads, a lot of good intel -- people here still very cautious, very watchful, saying they don't have him yet and it could still be some time, continuing to chase him.

But, as Don Rumsfeld always says -- and we repeat and quote him -- they don't have him until they have him.

HOPKINS: Thank you, Barbara Starr, at the Pentagon.

Saddam Hussein's daughters faced the cameras for the first time today since they went to exile in Jordan. There was no regret or remorse for the suffering that Saddam Hussein inflicted on Iraq and its people, only concern for the safety of their father.

(BEGIN VIDEO CLIP)

RAGHAD HUSSEIN, DAUGHTER OF SADDAM HUSSEIN: He was a very good father. Loving. Has a big heart. Loved his daughters, sons, grandchildren. He was very good father.

(END VIDEO CLIP)

HOPKINS: Not once did Saddam Hussein's daughters express any sympathy for the tens of thousands of Iraqis who were killed by their father's regime.

President Bush today welcomed North Korea's willingness to hold six-nation talks about its nuclear weapons program. North Korea's decision was a significant change of policy. It had previously insisted on direct talks with the United States alone. White House correspondent Chris Burns has the story -- Chris.

CHRIS BURNS, CNN WHITE HOUSE CORRESPONDENT: Well, hello, Jan.

This might sound like shape-of-the-table wrangling during the Paris peace talks during the Vietnam War, but, really, there is significance to this. And why? Because President Bush says that the last bilateral agreement between the U.S. and North Korea over North Korea's weapons program failed. It collapsed. The president would like now to involve what he calls the neighborhood, the other countries, Russia, China, South Korea, Japan, to bring pressure to bear on the North Korean regime of Kim Jong Il, who has been insisting that he talk only with the Americans.

At this point, Kim Jong Il has been pressured by the countries in the region to come to the table. The question is when. But President Bush is very optimistic.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We'll see how the dialogue goes. We fully understand the past. We're hopeful, however, that Mr. Kim Jong Il, because he's hearing other voices, will make the decision to totally dismantle his nuclear weapons program, that he will allow there to be complete transparency and verifiability. And we're optimistic that that can happen.

(END VIDEO CLIP)

BURNS: Now, the Stalinist regime of Kim Jong Il quit the nuclear proliferation treaty last year, kicked out nuclear weapons inspectors, and started reprocessing spent nuclear fuel rods into nuclear weapons- grade plutonium, being able to build more nuclear weapons.

The U.S. believes that they already have one or two, but they could build more and possibly even export them. That is why President Bush wants to stop this. Kim Jong Il is demanding that the U.S. and other countries provide more economic aid. And, even, he is demanding a nonaggression pact from the U.S. The U.S. is denying that, but they will be talking about these concerns with the North Koreans.

The question again, when it could be, possibly in September -- back to you.

HOPKINS: Chris, the president is about to take an extended vacation on his ranch in Texas. Is he calling this a working vacation?

BURNS: Well, Jan, this is definitely a working vacation for somebody who wants to be reelected next year. The president even started his vacation early today, going golfing. He leaves tomorrow for Crawford, Texas, for a month, but he's going to be very busy.

He's going to be going to six fund-raisers in five different states in the Midwest and West. And he's also going to be busy trying to shore up his environmental credentials by going to some national parks, talking about how his policies are promoting the environment. And you look at polls and they don't agree with him -- back to you, Jan.

HOPKINS: Thanks, Chris Burns, at the White House.

BURNS: Thank you.

HOPKINS: The president also spoke about the latest jobs figures. The unemployment rate fell last month to 6.2 percent. But that decline was caused by a large number of people who gave up looking for work.

Kitty Pilgrim has our report.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): More than nine million people are out there looking for work. Sure, there were fewer of them looking in July, but that is not good news. Economists say some just gave up and are no longer counted in official statistics.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: Fewer people are getting into the game actually looking for work. And that kind of discouragement can lead to a lower unemployment rate. It doesn't mean the labor market is tightening. It just means that there are fewer people actually seeking work.

PILGRIM: Companies cut back on the number of workers on the payroll for the sixth straight month; 44,000 jobs were cut in July. Economists were actually predicting that companies would add jobs. Well, for the most part, that just didn't happen.

For example, 12,000 jobs were cut in food and grocery stores. Jobs in the transportation industry, particularly the airlines, fell by 9,000. Manufacturing, where employment has been falling continuously for the last three years, lost 71,000 jobs in July. Also, companies cut back on the number of hours people were working. The average work week is about 33 1/2 hours in July, a signal of economic weakness.

ANTHONY CHAN, BANC ONE INVESTMENT ADVISORS: When you lose hours, that's not a good thing, because that really is also equivalent to loss of labor input. And it tells you that things are still sort of soft.

PILGRIM: All this is not playing well in the market or in Washington. President Bush made a promise over the situation.

BUSH: This administration focuses on lives. And when there are people looking for work and they can't find a job, it means we're going to continue to try to put pro-growth, expansive policies in place.

(END VIDEOTAPE)

PILGRIM: Now, there are a couple of bright spots. Companies are adding temps the third month in a row, 42,000 jobs in July. And, also, the travel industry added 11,000 jobs, mostly in hotels -- Jan.

HOPKINS: Sometimes, those temporary jobs become permanent.

PILGRIM: That would be one way to go. And, in fact, if you get your foot in the door in a company any way you can, it would be probably better than keep looking.

HOPKINS: Thanks, Kitty Pilgrim.

America's closest ally in the war against Saddam Hussein was British Prime Minister Tony Blair. And today, a judge investigating the apparent suicide of British weapons expert David Kelly said he will call Blair as a witness in his inquiry. At stake are the reputations of Blair and the BBC, which claims the government exaggerated the case for war.

Robin Oakley reports from London.

(BEGIN VIDEOTAPE)

ROBIN OAKLEY, CNN CORRESPONDENT (voice-over): The judge set out 38 episodes, including the controversial story by BBC journalist Andrew Gilligan, for which Kelly was claimed as the source, in the list, exchanges between the BBC and the Defense Ministry which led to Dr. Kelly's outing and exposure to an investigative committee's grilling.

Lord Hutton said he wanted all 38 items fleshed out in greater detail. The witnesses he'll be calling to help him do that fleshing out and eventually to apportion blame include Tony Blair and his Downing Street communications director, Alastair Campbell, Defense Secretary Geoff Hoon, the BBC reporter Andrew Gilligan, and Gavin Davis, the chairman of the BBC governors.

Reputations and jobs are at stake. And everything possible, Lord Hutton promised, will be in the public domain.

LORD HUTTON, HEAD OF THE INQUIRY: It is my intention to conduct this inquiry in public, unless considerations such as those of national security require me to sit in private. Unless such considerations arise, it is important that the public should know every word of evidence which is spoken at this inquiry and should know the full contents of every document which is referred to in evidence.

OAKLEY (on camera): Lord Hutton's thirst for detail and the exhaustive program he has set out makes it unlikely, say legal experts, that his inquiry can report before November. That's later than Tony Blair had hoped. But Britain's prime minister will be relieved that Lord Hutton hasn't indicated any plans to widen his inquiry into the government's use and alleged misuse of intelligence information in making its case for war.

Robin Oakley, CNN, London.

(END VIDEOTAPE) HOPKINS: More problems tonight for Russian President Putin in the crisis over Chechnya. At least 35 people were killed when a suicide bomber blew up a truck in a Russian military hospital in a town near Chechnya. Tonight, the White House said no cause whatsoever can justify such an attack.

And in Turkey today, a bomb went off in the capital, Ankara, as police officers investigated a suspicious bag; 16 officers were wounded, two seriously.

Still to come tonight: Kobe Bryant prepares for his day in court. We'll have a live report from Eagle, Colorado.

And then:

(BEGIN VIDEO CLIP)

VICTOR JOHNSON, ASSOCIATION OF INTERNATIONAL EDUCATORS: DHS has performed more gender-change operations than every doctor in the United States.

(END VIDEO CLIP)

HOPKINS: The Department of Homeland Security cracks down on student visas, but the system is flawed. Jeanne Meserve will explain.

And gotcha: A tech-savvy teen helps cops nab a bad guy -- that story and a lot more ahead.

(COMMERCIAL BREAK)

HOPKINS: Anthrax investigators have come up dry again.

The FBI drained a Maryland pond looking for clues into last year's anthrax attacks. All they found was some junk. The search was prompted by the discovery of a plastic box in the pond last winter. The anthrax attacks killed five people and sickened 17 others. To date, no one has been arrested.

The anthrax attacks began a month after hijacked airplanes were used to attack the United States. Two of the hijackers arrived in this country on student visas. A new screening system may have stopped them. But glitches in that system could prevent it from ever working effectively. Meanwhile, air travelers are facing closer scrutiny than ever.

Jeanne Meserve has the report.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): Two of the September 11 terrorists entered the U.S. on student visas, but were not going to school. Theoretically, the new Student and Exchange Visitor Information System, or SEVIS, might have caught that and stopped them. ASA HUTCHINSON, UNDERSECRETARY, DEPARTMENT OF HOMELAND SECURITY: We'd know that they were out of status as students, and, therefore, we'd have taken steps to expel them from the country.

MESERVE: By Friday, U.S. schools must enter basic information about their international students in SEVIS' centralized computer system. Those records will be used to screen student visa holders at ports of entry before the students are let in.

If the visa holder then doesn't arrive at school or attend classes, the school tells SEVIS and an investigation begins. But will it work? So far, schools say, computer glitches have made it a disaster.

JOHNSON: DHS has performed more gender-change operations than every doctor in the United States, because you enter somebody as a male and they print out as a female.

MESERVE: Schools worry, the system will crash completely in the next few weeks, when 600,000 students come pouring into the country for the new semester. To deal with anticipated problems, Immigration and Customs is opening a command center. But, even if the system works, will it be effective? The Department of Homeland Security admits, as of now, it does not have the resources to investigate and enforce.

HUTCHINSON: It's going to be a challenge, and we're building that capability.

MESERVE: Some believe the system pays disproportionate attention to students, who account for only 2 percent of temporary visa holders.

FANTA AW, THE AMERICAN UNIVERSITY: This would not be, from my perspective, a dent in being able to combat terrorism.

(END VIDEOTAPE)

MESERVE: And schools ask, if this and other security measures drive international students away, some of whom come to know and love the U.S., isn't that a national security problem, too? -- Jan.

HOPKINS: Good point.

Jeanne, is there any decision tonight on visas for people in transit, simply traveling through the United States? That's been an issue this week.

MESERVE: We know they are examining that policy. We expect some modifications to be made. And a number of people in the industry expect some changes, but nothing has been announced at this point in time.

However, there has been some change in security directives. Those transit passengers are being subjected to more scrutiny, a more careful look being given specifically to their shoes and to their clothes and to their electronics. You might remember that that aviation advisory about possible hijackings that went out earlier this week indicated that those sorts of items might be weaponized by any possible hijackers.

HOPKINS: Thanks very much, Jeanne Meserve, in Washington.

And, in New Jersey, modern technology did work and helped prevent a horrible crime. Camera cell phones have only been around in this country for about a year, but a 15-year-old boy used his to photograph a man who tried to lure the teen into his car. Those photos led to the arrest of the would-be assailant, who is now in jail.

New developments tonight in the Kobe Bryant case: Late yesterday, a judge said that Bryant must appear in court on August 6. There are also questions about one of the key investigators in the case.

Gary Tuchman is in Eagle, Colorado, with the latest -- Gary.

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Hello to you, Jan.

Five days from now, Kobe Bryant will be appearing in this building behind me, the Eagle County Justice Center, it's officially called, his initial appearance in court. His lawyers went to court yesterday to try to tell the judge, please don't make Kobe Bryant appear. The judge refused. So Bryant will be here for what should be a short hearing, but it will get a lot of public attention. He'll be read the charges. He'll be read his rights. And it will probably take five or 10 minutes, and then he'll be allowed to fly back to California.

Now, among the items we're investigating, CNN has learned that Kobe Bryant placed a 911 emergency call from his phone on the morning of July 3. Now, we have no indication, no evidence that this is related to the sexual assault case. However, at the very least, the timing is notable, because he made this call just hours after he came back from Colorado, where he provided DNA testing here in Colorado, flying back, and then making the call.

Now, authorities are telling us, in Newport Beach, California, they got a 911 call. There was nobody on the line. They called the number back. Kobe Bryant answered. Officials say Kobe Bryant acknowledged making the call earlier. They were told to come to the house, the EMS officials, because a female needed medical attention. We are not being told the female was his wife, Vanessa. We do know there were three people in the house, according to the EMS, and the Bryants do have a young baby, so three people who were there.

They got to the scene. They provided some medical attention to the woman, who they say was lying in bed, but she said she did not need to go to the hospital. So the officials in Newport Beach say -- quote -- "Further transport was refused." They were there for a total of 23 minutes.

Now, the reason the timing is notable is because this alleged crime happened on June 30. The woman, the 19-year-old alleged victim, then went to the hospital on July 1. Kobe Bryant then went to the hospital on July 2, provided the DNA testing, then flew back to California. This call would have then happened a few hours later in the very early morning hours, the late night of July 2 the early morning of July 3.

And then, on July 4, he came back here to Colorado, where he was arrested, his picture was taken, he posted bond, and then flew back again to California. And once again, the next time he'll be here is August 6 this Wednesday, for his first appearance in court -- Jan, back to you.

HOPKINS: So what's the thought about this?

TUCHMAN: Authorities in Newport Beach, first of all, aren't telling us if they know if there's a connection or even if they care if there was a connection. Their job was to provide medical treatment.

But the fact was, at the very least, it's very coincidental that this man, whatever happened, went through all these things over a period of a few days and then made a call to 911, which is unusual for any family, just hours after he got back from providing DNA testing.

HOPKINS: Gary Tuchman in Eagle, Colorado, thank you.

When we return: political races from California to the White House picking up some familiar faces. Senior political analyst Bill Schneider, a familiar face, will join us.

And then our series of special reports on "Selling America" continues tonight with celebrity exposure and overexposure.

Plus: the future of advertising. Author Joe Cappo will be our guest.

Also ahead: A tax-free shopping spree, it's a trend that's catching on.

(COMMERCIAL BREAK)

HOPKINS: Still ahead: Senator Springer? It could happen. It's just one of many odd possibilities on the political landscape right now.

Senior political analyst Bill Schneider will join us next.

(COMMERCIAL BREAK)

HOPKINS: Nearly a dozen Texas Democrats are still on the run tonight. The 11 state senators are holed up in New Mexico, still ignoring pleas from Texas Governor Rick to come home. The Democrats are protesting Republican plans to redraw congressional districts. They're being guarded by New Mexico State Police because of concerns that bounty hunters have been hired to take them home.

A number of developments on the national political scene: Democrats reportedly are pressuring former Vice President Al Gore to make another run for the White House. And a controversial figure from American pop culture is said to be considering a return to politics.

Senior political analyst Bill Schneider joins us now from Washington with more.

Bill, let's talk first about the presidential race. Al Gore being drafted, what's the likelihood, and why?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, it doesn't come from Al Gore. He's absolutely denied any interest in running. He said he wouldn't run about -- almost a year ago. And it's not from his people. It's from anxious Democrats, who are worried that the Democrats don't seem to have a front-runner in this race.

And even worse, from some of their points of view, the front- runner may be Howard Dean. If Howard Dean from Vermont ends up beating Dick Gephardt in Iowa and then a week later beating John Kerry in New Hampshire, Howard Dean might be unstoppable. And a lot of Democrats -- not all, but a lot of Democrats -- think, well, he's a sure loser, because if they nominate Howard Dean, then the campaign would consist of refighting the Iraq war. And a lot of Democrats say: We don't want to do that.

So they're trying to find a candidate. And they're even looking at Al Gore.

HOPKINS: Who else might be drafted?

SCHNEIDER: Oh, they talk about Hillary Clinton, wistfully, as someone they'd love to see run. But she too has said she doesn't intend to run, she will not run. She pledged to the voters of New York that she wouldn't run. I think that's all blowing smoke from the point of view of the Democrats who are talking about her. I don't think she's going to run. And I don't think Gore's going to run.

I think the only option, if people want to stop Dean, they've got to gather behind some candidate. And the problem is that the establishment, so to speak, the Democratic insiders, right now are divided principally between three candidates, Dick Gephardt, who has a lot of union support, John Kerry, and -- who else is there? Kerry, Gephardt, and...

HOPKINS: Edwards?

SCHNEIDER: Lieberman, Joe Lieberman, who was on the ticket with Al Gore.

HOPKINS: Let's go to California, no shortage of candidates there, and some interesting ones.

SCHNEIDER: You have over 200 people who have picked up papers. They haven't all filed, but they've picked up papers indicating they might run, some of them with interesting names, someone named Michael Jackson, a couple of people named Gray Davis, the same name as the governor. It's very easy to run in California. You need 65 signatures and $3,500 and you're a candidate. You don't even have to run for a party nomination. And whoever gets the most -- the largest number of votes -- you don't need a majority -- wins. And with possibly 200 candidates on the ballot, that could be a very easy thing to do.

HOPKINS: Including Larry Flynt?

SCHNEIDER: Larry Flynt, who claims to have a little bit of a political standing, because he's a civil libertarian, a free speech advocate. He also, of course, is a famous self-described smut peddler, the publisher of "Hustler" magazine, he's running. Does he have a chance? I mean, is this a joke?

Well, look, if there are dozens and dozens of candidates on the ballot, maybe 90 percent of California voters said, I won't say -- I will never in a million years vote for Larry Flynt and he may have only 10 percent of the vote. But if that 90 percent who would never vote for him are divided between 10 or 15 candidates, sure, he has a chance.

HOPKINS: And Arnold Schwarzenegger, what's his decision, do you think?

SCHNEIDER: Well, we don't know. The indications from California are that he's likely not to run. His wife, Maria Shriver, is said to be concerned about security. They have four children. She's a Kennedy, of course. And all Kennedys are very security-minded in politics.

If he decides not to run, he probably will announce it next week on the Jay Leno show, which leaves a lot of people to say maybe all of this was just a ploy to try to promote his current movie.

HOPKINS: Mr. Traficant, the congressman from my old district in Ohio, talking about running for president from jail.

SCHNEIDER: That's right, not for governor of California, but for president. He's going to run against the Democratic Party. He thinks it's got too many socialists in the party. He's a bit of a joke also. But running for president, of course, a very different business from the crazy rules for running for governor of California -- not a chance in the world.

But he would add a little bit of, shall we say, colorful commentary to this race.

HOPKINS: That's for sure.

Thanks very much. Bill Schneider, have a good weekend.

SCHNEIDER: Sure. OK.

HOPKINS: When we return: our series of special reports, "Selling America." Tonight: celebrities hawking their own images -- that story and the future of advertising. Joe Cappo, the author of a book by that name, will join us.

And then, wanted: jobs. Stocks fall and a weak employment report. Christine Romans will have the market for us.

And:

(BEGIN VIDEO CLIP, "GIGLI")

JENNIFER LOPEZ, ACTRESS: I want to meet your mother.

(END VIDEO CLIP)

HOPKINS: It has been called the worst movie of the century. Peter Viles reports on "Gigli." And we will have the head of BoxOfficeGuru.com to join us.

(BEGIN VIDEO CLIP, "GIGLI")

UNIDENTIFIED ACTRESS: Larry, invite them in.

BEN AFFLECK, ACTOR: I am, ma, all right?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

HOPKINS: Concerns about the economy and the latest employment report sent stocks tumbling. Dow Industrials fell about 80 points. Nasdaq lost 19. The S&P 500 fell 10. Christine Romans is here with the market -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: Hi there, Jan. A down day capped a down week for the market. It was the first down week for the Dow in five weeks. The Nasdaq fell almost 1 percent this week. And the S&P 500 dropped almost 2 percent on the week.

Now, with such a big rally already this year, traders fear that strong earnings and nascent economic growth have already been factored into the market and stocks could be stalling out here. That's what you saw today. Still, the earnings news has been good. We're 80 percent through the earnings season. The S&P 500 companies are reporting profit growth of more than 9 percent, revenue up 4 percent.

Still, after a sizzling July, August got off to a weak start, and that's not so unusual. In the past 15 years August has been the worst month of the year for the Dow and the S&P, and the third worst for the Nasdaq. Now, the bulls hope that this is not the case this time around. They point out that August tends to be strong when bear markets are ending. So we'll watch to see.

HOPKINS: We'll see if the bear market's ending. Thanks, Christine.

ROMAS: You're welcome.

HOPKINS: In tonight's quote, reaction to the jobs report and its effect on economic recovery, quote "this is not the stuff that expansions are made of," that from economist Ed McKelvey. And tonight we continue our series of special reports, selling America celebrities are popping up all over the place these days, in commercials and interviews and in the news. In some cases they're taking jobs away from voice-over actors and models.

(SINGING)

HOPKINS: Look who's in the new Gap ads, Madonna. After a disappointing movie and record, Madonna is taking her act to the Gap.

(SINGING)

HOPKINS: Celine Dion is singing for Chrysler.

MARK TUTSSEL, LEO BURNETT: It's an opportunity for those people to basically produce a pop promo. It enables them to play their music and be associated with that brand. So it's a two-way traffic. It's almost a duet between the music industry and the advertising community.

HOPKINS: Beyonce knowles is on the September cover of Glamour. she joins a host of celebrities taking over where once only models reigned.

CYNTHIA LEIVE, EDITOR-IN-CHIEF GLAMOUR: 10 years ago glamour was doing exclusively models. Once in a long, long while a celebrity would come along on the cover of the magazine, but it was really a rare event. Now we're doing more and more celebrity covers to the tune of about eight, nine, even sometimes ten a year.

HOPKINS: Celebrities like Whoopi Goldberg...

WHOOPI GOLDBERG, ACTRESS: You've been friends for so long you can actually be honest about everything.

HOPKINS: Bruce Willis...

BRUCE WILLIS, ACTOR: The Toyota Tundra out accelerates every other base V-8 truck in its class.

HOPKINS: And Halle Berry....

HALLY BERRY, ACTRESS: So you're that new crispy M&Ms guy, huh?

UNIDENTIFIED MALE: Are you trying to get me killed?

HOPKINS: ... are now doing voice-over work for commercials. Advertisers love it because they can use familiar voices. But it's taking jobs away from voice actors who are already finding it hard to find work.

CARY BERMAN, WILLIAM MORRIS AGENCY: I think that there are fewer jobs out there for voice-over talent as there are for actors as well. If you look at the television arena, you see all the reality programming that's taken over prime-time. And that has really decreased the amount of jobs out there. HOPKINS: Yes, celebrities are everywhere, doing everything and being paid handsomely for it. It's no wonder Brad Paisley's new satire song celebrity is getting a lot of mileage.

(SINGING)

(END VIDEOTAPE)

HOPKINS: Tonight's thought is on the risks of too much celebrity. Quote, "I think there's a danger in overexposure. Just think what happened to Lady Godiva -- she became a chocolate." That from Kenneth Jay Lane.

And we are now joins by Joe Cappo, who wrote a book called "The Future of Advertising." he joins us from Chicago.

Let's start with celebrities, I mean, is there a danger of overexposure and in a year or so we don't want to hear from celebrities?

JOE CAPPO, AUTHOR: Well, there's no question about that. But you have to know that clients right now are desperately trying to get attention in a media world that's just filled with so many options and so many different messages that they're just raising the volume day after day.

HOPKINS: And that's part of the reason why you use the subtle kind of voiceovers from a familiar voice of a celebrity, to try to get attention of the audience, right?

CAPPO: Well, this has been a trend over the last few years, and that is they have stopped largely using announcers, radio announcer voices, and have gone toward actors, who are able to put a little more feeling, maybe a little more sell into the messages, and also have that familiar voice that they might associate with a product or with a service.

And then they create a relationship between the actor or the actress and the product itself, hoping to have a little synergy in terms of selling.

HOPKINS: What else is working?

CAPPO: Well, traditional advertising is not working as well as it used to, and that is television, traditional television, to a large extent, newspapers to a large extent, magazines are inconsistent in their results. But the reason is this whole proliferation of media, 150 or 200 or 300 channels of satellite television, thousands of magazines, all kinds of sponsorships and sales promotion events and things of that sort have created a very cluttered environment for all of us, anybody in the news business as well as those in the advertising business.

So the idea is to get out of that clutter and try to have a good, clean, solid image and a brand that you could project out into the public. HOPKINS; So advertisers are doing other things. They're naming stadiums, for example, as a way to get their name out there. What else?

CAPPO: Well, that's one of the large points that has taken place in the last two or three years, at a point now where about 75 of the professional sports stadiums in the country have named sponsors paying them money.

But there's a second part of that, the sponsor, for example, in the case of Pepsi Cola, putting its name on a sports stadium in Phoenix, also gets the right to be the exclusive seller of soft drinks or beverages in that stadium. So there's a dollar return to some extent in that regard.

HOPKINS: We did a story this week on product placement. That's another thing that we can really see a lot more of in the next few years, don't you think?

CAPPO: Well, actually, there is a system that's on the west coast right now called Wink TV which has the ability to have a product placement on a TV program where you have a set-top box, as you would have a cable box, and when a product that is being placed and paid for in that channel or in that network comes up, you get a signal and you can click on your remote and you can see what the product is and perhaps order it or get a demonstration or have someone call you or something of that line. That's the ultimate so far in product placement.

HOPKINS: So Cappo, Crane (ph) Communications and author of the book "The Future of Advertising".

CAPPO: Thank you.

HOPKINS: And coming up our "CEO of the week". On success and filtering out winning strategies from the losers.

And then one reviewer called the lates Benn Affleck and Jennifer Lopez film a shrill mess. Peter Viles reports on "GIGLi".

And we will hear from boxofficeguru.com, coming up.

And how does a tax free shopping spree sound? It could be coming to a mall near you.

(COMMERCIAL BREAK)

HOPKINS: Our "CEO of the Week" has nearly doubled his company's stock price in only five years. Five years that have been less than rewarding to most stockholders.

Mark Kachur of CUNO is our "CEO of the Week."

(BEGIN VIDEOTAPE)

HOPKINS: (voice-over): Back in 1994, CUNO had top notch filtration technology but a rusty business plan. So the company recruited Mark Kachur to fix it.

MARK KACHUR, CHMN. & CEO, CUNO INC.: The biggest problem was a culture of new product development. There was none.

HOPKINS: Kachur's arrival touched off an era of what one analyst describes as a religious commitment to developing a full pipeline of new products.

KACHUR: We won't develop it unless it has a proprietary and patented position. We don't want to create an after-market for somebody else. So when we lock in that after-market, we can expect to enjoy it for several years.

HOPKINS: The strategy has paid off. Operating margins have nearly quadrupled since Kachur took over. And CUNO's growth rate is nearly twice the industry average.

Kachur moved the company away from selling lower-end products to more sophisticated filter systems with higher margins, particularly for the health care industry.

Shareholders have taken note. The company's stock is up nearly 90 percent in the last five years.

KACHUR: We're heavily compensated on the success of new products. It's part of our culture. Our training is based on new products. And so it becomes a daily activity for us. And it's probably not the case in most of our competitors.

HOPKINS: Kachur and CFO Fred Flynn are the only insiders on a board of seven. The board conducts its meeting in what Kachur calls an environment of open dissent.

KACHUR: I never use the term "my board" because it's not my board. It's the shareholders' board. It's up to the shareholders, and it's up to the board to work closely and represent the shareholders so the shareholders are getting the best possible benefit for their investment.

(END VIDEOTAPE)

HOPKINS: Our congratulations to Mark Kachur, our "CEO of the Week."

And a reminder now to vote in tonight's poll: "What do you think will be the most important issue in the 2004 elections?" The economy and unemployment, homeland security, health care, or the national debt? Cast your vote at cnn.com/lou. We'll bring you preliminary results in just a few minutes.

Shoppers in Georgia are enjoying a four-day holiday of sorts. The state is giving them a break from paying sales taxes. Similar tax-free holidays are catching on across the country, as Sean Callebs reports.

(BEGIN VIDEOTAPE) SEAN CALLEBS, CNN CORRESPONDENT (voice-over): It's time to shop till you drop without dropping any money on sales tax. Well, on most items in Georgia. It's a sales tax holiday just a few weeks before the start of school.

UNIDENTIFIED FEMALE: It's perfect because you do spend a lot between school supplies and clothes and shoes.

CALLEBS: The National Retail Federation says Georgia is one of 10 states that currently gives customers a break on sales tax each year and 17 more states are considering it.

(on camera): These four days will cost Georgia somewhere between 14 and 16 million dollars in lost tax revenue, according to state officials. But they plan on making up some of that money in part because stores will have to spend more money on overtime for their employees and also hire some temporary workers.

That will bring in some extra income tax, but Georgia and other states look at this chiefly as a boost for consumers and retailers.

CHRISTINA OLAUSSON, MALL ASSISTANT MANAGER: Last year, the first tax-free day that we had, which was right before Easter, our traffic was like the busiest shopping day of the year.

CALLEBS (voice-over): There is one slight drawback.

UNIDENTIFIED MALE: It's a double-headed sword there. You go in there to save money and then you end up spending a little bit more than you would want to because of the simple fact that you're saving a little bit on taxes.

CALLEBS: But many say if you're going to spend the cash, why not spend it when you can save?

Sean Callebs, CNN, north Georgia.

(END VIDEOTAPE)

HOPKINS: Still to come, a summer stinker at the box office. "Gigli" is pummeled by pundits. Gitesh Pandya of boxofficeguru.com will join us.

And then your e-mails on buying American as more jobs are shipped overseas.

And funky fragrances. Dirt, snow, and funeral home scented perfumes? Jeanne Moos will have that story when we come back.

(COMMERCIAL BREAK)

HOPKINS: We usually wait until Monday to tell you how the new films have fared at the box office over the weekend, but we're making an exception this week because of the remarkable critical reaction to the new Ben Affleck/Jennifer Lopez movie. To say that the critics hate this movie is a bit of an understatement. Peter Viles reports.

(BEGIN VIDEOTAPE)

BEN AFFLECK, ACTOR: Larry.

JENNIFER LOPEZ, ENTERTAINER: Larry Giggley, right? I saw it on the mailbox.

AFFLECK: Yes, it's pronounced Gigli, but it rhymes with really.

PETER VILES, CNNfn CORRESPONDENT (voice-over): As in really, really bad, the overwhelming critical opinion of "Gigli, " the new romantic comedy starring Ben Affleck and Jennifer Lopez.

"The New York Post" said the dialogue was embarrassing, crude and clueless. Here's a sample.

AFFLECK: Let me tell you something. In every relationship there's a bull and a cow. I'm the bull. You're the cow. Got that?

LOPEZ: Yeah, I've got it. Bull, cow.

VILES: The reviews aren't just bad. They're savage. A new low, says "The Daily News." A stuffed turkey says "The Post."

RUSSELL LEATHERMAN, PRES., MOVIEFONE: People are really jumping on this thing, right? Like, very critic across the country is taking the opportunity to just hammer this movie as hard as they can, maybe because Ben and Jen did so much publicizing of themselves.

VILES: "The New York Times" calls it a hopelessly misconceived exercise in celebrity self-worship has a special badness all its own.

So bad, says the "Atlanta Journal-Constitution, " it verges on the legendary. A disaster of spectacular proportions. A pile of manure.

RICHARD ROEPER, CHICAGO SUN-TIMES: Calling it a pile of manure is an insult to manure everywhere. I don't know why anybody would say such a thing about manure. That's such an insult.

VILES: Legend has it the two stars fell in love while making this movie. Critics say the sparks are missing from the final product.

"USA Today" says Affleck had more chemistry with buddy Matt Damon in "Good Will Hunting." Columbia Pictures did find two positive reviews, but they really had to search. They came from entertainmentstudios.com, which called the movie original. And from a Dallas TV station, which said it was sexy and fun. A random survey showed those to be minority opinions.

UNIDENTIFIED FEMALE: You couldn't pay me to see it.

UNIDENTIFIED FEMALE: Could have been better. VILES: "Gigli" opens today across America. If you want to see it in a theater, you might want to hurry.

Peter Viles, CNN, New York.

(END VIDEOTAPE)

HOPKINS: Joining us with more on the summer box office and some of the all-time worst bombs of the big screen is Gitesh Pandya. He's editor of boxofficeguru.com. But will people go to the movie to kind of watch a train wreck or to see the romance?

GITESH PANDYA, EDITOR, BOXOFFICEGURU.COM: Well, that's one of the hopes that Sony pictures has for "Gigli", opening this weekend. The star power is very good. Ben Affleck, Jennifer Lopez, they actually anchor a lot of commercial hits at the box office. They can both sell tickets. The question is put them together for the first time ever after a year of endless publicity, do people want to see that despite the bad reviews?

Now, the reviews, as we've said, not only are they bad, they're horrendous, one of the worst-reviewed movies of the year. However, I think there will be somewhat of an audience coming out this weekend, maybe just a moderate audience, to see the movie but after that you'll see very large declines at the box office.

HOPKINS: What about some of the other bad movies, the bombs. You know, name some.

PANDYA: Well, one of the notorious films from the '90s we talk about is "Waterworld". People talk about Kevin Costner, an inflated budget of $175 million to make this movie and how did it do at the box office. Many people would be surprised to learn that it was a profitable film despite all of the bad reviews and the bad publicity, about the actor fighting with the director. It grossed about $88 million domestically, but it did about twice as much overseas, and the overseas market was very big for it. About 250 to 260 million worldwide gross plus video revenue made that movie a hit.

However, you also have other films where you have these pop music divas become movie stars. Madonna was in "Swept Away" last year. That did less than 1 million at the box office. Mariah Carey was in "Glitter" two years ago, that was about 4 or 5 million at the box office. So there is a track record of people, especially singers, moving into the movie business and bombing.

HOPKINS: There are some other movies this weekend. "The American Wedding". Is that likely to do well?

PANDYA: Well "American Wedding" does look like it's going to be a hit for Universal Pictures. It was part of a franchise, which has been going since 1999. The first one did about 106 -- $101 million actually at the box office. The next one did $145 million.

This one, "American Wedding" is the third and supposedly final part in the trilogy of "American Pie" movies. It's a crude, gross-out kind of a comedy, and it's expected to be number 1 at the box office this weekend just like many other sequels have opened this summer. But just like most sequels it will probably open pretty big with most of the audience coming this time and then fall away quickly.

HOPKINS; A different strategy, "Seabiscuit". It's opening at more theaters this weekend, and it might actually grow in the next few weeks. Is that right?

PANDYA: I think so. I think this is another one from Universal Pictures. They're having a very good summer. It opened last weekend with about a $10,000 per screen average, which was the best of all movies in wide release. This time they're adding about 400 more theaters across the country. There's good word of mouth.

There's very good reviews, which is more than you can say for "Gigli" this weekend. And so that is the old-fashioned way to make a hit. And this one will be a strong contender throughout the rest of the summer, and I can see it passing $100 million at the domestic box office.

HOPKINS: Thanks very much, Gitesh Pandya. Thanks for joining us.

And when we come back, we'll have preliminary results of the poll tonight plus outrage over excessive pay from corner offices to Hollywood stars. We'll read some of your e-mails next.

(COMMERCIAL BREAK)

HOPKINS: Now the preliminary results of tonight's poll. What do you think will be the most important issue in the 2004 elections? 81 percent of you said the economy and unemployment. 6 percent said homeland security, 4 percent said health care, 9 percent said the national debt.

Now for a look at some of your thoughts. Many of you wrote about our report last night exporting America and our poll question that asked if you'd be willing to pay more for American-made products.

Joe Pane, of California broke it down to a simple equation, "American products equal more plants equals more jobs equals more property taxes, equals better town services equals better house equals better quality of life.

Now if can just fill all of those thoughts with legal American labor we could actually improve the United States."

John from Reno, Nevada, was more skeptical, "Most Americans will say that they are willing to pay more for American made products until they take out their wallets."

And Bruce Reed of Texas asked, "When there is no one but Hamburger flippers and used car salesmen left working, who is going to buy anything?"

We love hearing from you. You can e-mail us at loudobbs@CNN.com. Finally tonight, the sweet smell of success. There is a fragrance company that has won awards for creating some unusual scents. Our Jeanne Moos has details on these funky fragrances.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Instead of getting out of a thunderstorm, smell like your in one.

UNIDENTIFIED FEMALE: My god. It smells like the wet leaves.

MOOS: Instead of sipping a gin and tonic, light one up.

UNIDENTIFIED FEMALE: Gin and tonic.

UNIDENTIFIED FEMALE: Yes.

MOOS: Instead of getting all dirty, do as Actor Alan Cumming does.

(on camera): What are you wearing?

UNIDENTIFIED MALE: I'm wearing dirt.

MOOS: Dirt the scent and now dirt the soap.

UNIDENTIFIED MALE: I like to think of it as soil rather than dirt.

MOOS: A rich earthy smell familiar to any gardener.

UNIDENTIFIED FEMALE: It is the perfume for people not interested in perfume.

MOOS: Christopher Brosius is the co-founder of the Demeter Fragrances, award-winning scents ranging from grass, to snow to angel food.

UNIDENTIFIED FEMALE: That's really nice.

UNIDENTIFIED MALE: I also like (UNINTELLIGIBLE).

MOOS: Now Demeter fans have something new to sniff, room spray, scented candles and soaps. $12 Italian soaps. You can play in the dirt together, you can infuse a room with a childhood memory of a favorite ice cream bar.

UNIDENTIFIED FEMALE: Creamsicle but don't lick it.

MOOS: The thunderstorm candle smells of wet earth. Customers ask for the oddest things.

UNIDENTIFIED MALE: You know, it's the scent when I first turn on my air conditioner in May. And I said, well, that's mildew.

MOOS: But even mildew sounds tame compared to funeral home. UNIDENTIFIED FEMALE: Funeral home confused me because it smells of musty old people, and why would you want to smell like that.

MOOS: Actually, it's composed of white flowers such as lilies. Christopher says his biggest failure was cream corn.

UNIDENTIFIED MALE: It was just revolting.

MOOS: Demeter Fragrances are sold at stories like Anthropologie and at the fashion-planet.com Web site. You might recall the odorific machine in the movie "Harold and Maude."

Roast beef, old book, mown grass. Demeter has done them all.

UNIDENTIFIED MALE: Brilliant roast beef.

MOOS: And now you can have your mouth washed out with dirt.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

HOPKINS: That's our show for tonight. Thanks for joining us. I'm Jan Hopkins for all of us here, have a great weekend. Good night from New York. "LIVE FROM THE HEADLINES" with Anderson Cooper is next.

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