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CNN Live Today

Two Separate Attacks in Sunni Triangle Leave at Least Nine Dead, Five U.S. Military Personnel

Aired March 31, 2004 - 10:00   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.


DARYN KAGAN, CNN ANCHOR: Good morning, we're at CNN headquarters in Atlanta. I'm Daryn Kagan. Let's get started with the check of the headlines at this hour.
In Iraq, grisly scenes from two attacks in the explosive Sunni Triangle region. Five U.S. service members are dead after a roadside bombing and four civilian contractors are dead following a grenade attack. Both attacks came in or near Fallujah. Eyewitnesses report a burning body being dragged through the streets, while Iraqi crowds cheered. In minutes, we'll bring you the latest in a live report.

CNN has learned of a secret operation, which was approved in the early days of the Bush administration to mount retaliatory attacks against Iraq. Weeks after coming into office, Operation Desert Badger was approved by President Bush. It called for a massive strike against if a U.S. pilot was shot down, while flying over the country. Iraq repeatedly claimed to be shooting at U.S. planes. Recently, critics have said the administration was pre-occupied with Iraq well before the September 11 attacks. President Bush confirmed the operation's existence, says earlier this year it was an extension of an existing policy.

In Wisconsin, family and friends are looking for a young girl seen here. Audrey Seiler was last seen on this video surveillance early Saturday leaving her dorm at the university of Wisconsin, Madison. Volunteers have combed through nearby swamps, so far they say though, police have very few leads on the 20-year-old woman's disappearance.

And John Kerry is in Boston for minor shoulder surgery. The presidential hopeful needs treatment to repair a torn rotator cuff. Kerry's injury stems from a minor accident at a campaign stop last January. The senator will go home for a few days of rest, following the procedure.

The first hour of CNN LIVE TODAY begins right now.

We are going to begin this hour in Iraq. The epicenter of the insurgency, the Sunni Triangle. Two separate attacks in and around the region have left at least nine people dead, five of them U.S. military personnel. And in one grisly incident, crowds reportedly dragged at least one of the bodies through the streets.

Our Jim Clancy is in Baghdad with more on these attacks -- Jim. JIM CLANCY, CNN CORRESPONDENT: Well, Daryn, if a picture is worth 1,000 words, the pictures coming out of Fallujah today were 1,000 nightmares. Four U.S. civilian contractors, I shouldn't say U.S.; we don't know all of their nationalities just yet. We know they were working with the U.S. Civilian Provisional Authority, though. They were in Fallujah for some reason, the U.S. military not able to confirm why.

Gunmen from two directions set upon them with hand grenades. Apparently two vehicles that they were riding in caught fire and then their vehicles were sprayed with small arms fire. The resulting scene one of devastation and death: the vehicles on fire, the charred bodies inside. Iraqis, some of them, pulled those bodies from the cars and dragged them through the streets hanging them, or at least parts of them from a bridge nearby. It was a horrific scene, and one in which some of the people on the scene chanted, celebrated the deaths and chanted long live Saddam Hussein. No other details about those people that were involved there pending the notification of the next of kin.

Now, this was predicted that there would be a spike in attacks. One member of the Iraqi Governing Council told us that even before this day.

(BEGIN VIDEO CLIP)

AYAD ALLAWI, IRAQ GOVERNING COUNCIL: It will definitely get worse before it gets better. We know that there are a lot of enemies, elements who are trying to undermine the situation in Iraq now. They are trying to create problems in Iraq to stop the process from moving forward. A process of sovereignty and the process of democracy.

(END VIDEO CLIP)

CLANCY: Now, nearby Fallujah, a roadside bomb killed five U.S. soldiers with the First Infantry Division. They were driving in an area of farmland -- rich farmland around that region when the bomb went off, killing all of them. Apparently it was underneath the vehicle. No other details on that forthcoming just yet -- Daryn.

KAGAN: Jim Clancy, we'll hear more from you and from Baghdad in the next hour.

Right now we move on to the latest on Condoleezza Rice's return appearance before the 9/11 Commission. This time, as you know, it will be in public. That news breaking just about 24 hours ago on this program. Administration officials say that it's likely the president's national security adviser will testify at the end of next week.

Earlier, the commission's chairman appeared on CNN's "AMERICAN MORNING" to discuss the focus of Rice's questioning.

(BEGIN VIDEO CLIP)

TOM KEAN, CHMN., 9/11 COMMISSION: In the transition from the Clinton to the Bush administrations what did she say? What did they tell her? What did we know then about terrorism? What was the advice? Then what were the policies of the Bush administration, as they proceeded ahead? And we want to clear up any discrepancies between her testimony and other people's. and most of all, we suppose we want to know what the policy is now. I mean what are we doing? How are we doing it? How successful does she think we are? And is she recommending any changes? Are they going to go in any different directions?

(END VIDEO CLIP)

KAGAN: And a footnote here for you. Today a technical review panel for the Environmental Protection Agency will hold its first meeting. The focus is on the health concerns of workers and residents affected by the collapse of the World Trade Center buildings.

A Canadian man is under arrest on terrorism charges that span the Atlantic Ocean. The Royal Canadian Mounted Police arrested the 29- year-old Mohammad Momin Kuaja (ph). And they are saying very little about the arrest, other than the case involves crimes in Ottawa and London. Family members of the Canadian-born man say they were asked about the Madrid bombings.

Meanwhile, a report by Canada's auditor general warns that its borders and airports remain vulnerable to terrorist attacks and that urgent movements must be made. The country has spent billions in updating security since September 11. The report says there's a dangerous lack of communication between security agencies.

A decision that was made halfway around the world is hitting home at your corner gas station. The OPEC oil cartel today shrugged off concerns about surging oil prices and decided to go ahead with a planned production cut. That likely will mean more pain at the pump for many of us already wrestling with record gas prices.

Our Diana Muriel is in London with more on the OPEC decision -- Diana.

DIANA MURIEL, CNN LONDON CORRESPONDENT: Yes, Daryn. Well, OPEC has not officially confirmed this decision to cut production by a million barrels a day to 23.5 million barrels. It was something, though, that was flagged up at their last meeting in Algiers in February. They said they were going to do this in the beginning of April. They said they were going to do it again at the end of April. That may not happen. We have to wait and see. There seemed to have been a split amongst OPEC oil ministers.

But the affect on the markets was immediate. Even without official confirmation from OPEC itself, we saw the price of gasoline spiking in the New York mercantile exchange to an all time high. We saw the price of light, sweet crude for May delivery in New York also leaping by 28-cents. So the markets have recognized that there is this cut. and that, of course, will feed through eventually to prices at the pump. It won't feed through immediately. It will take about six weeks or so before the effects of this production cut, if it is confirmed, are felt. But in the meantime, Americans are already paying extremely high prices for gasoline. Something of an average of 1.74-cents for a gallon, and that is the highest that we've seen it since 1985. Of course, in an election year, this could be fairly uncomfortable for the administration, a lot of pressure on the U.S. president to try and alleviate this.

In the meantime, the administration is saying that it's going to continue replenishing the stocks of the strategic reserve. They see that as a point of national security, that that must be at full capacity. And that the administration has said it is going to put something like 25 million barrels into that before Election Day. So the effects of the OPEC decision will also hurt very soon in the United States -- Daryn.

KAGAN: Just what drivers here in the U.S. did not want to hear. Diana Muriel in London, thank you for that report.

Well we're talking about the politics of this. The surging gas prices creating political inroads this presidential year. Who can best prime the pump: President Bush, candidate Kerry, or perhaps even you?

Our financial news reporter Bill Tucker takes a look.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): With gasoline prices headed well north of $2 a gallon in some places, voter anger is rising, and the political rhetoric is getting interesting.

REP. EDWARD MARKEY (D), MASSACHUSETTS: The Christians had a better chance against the lions than the American consumer has against the OPEC cartel.

TUCKER: Gasoline stations have become the backdrop of campaign moments, with demands of action to bring prices down.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We should be putting pressure on OPEC to raise the supply and not allow those countries to undermine the economies of the world.

TUCKER: The Republicans have their own response.

UNIDENTIFIED MALE (voice-over): If Kerry's gas tax increase were law, the average family would pay $657 more a year.

TUCKER: In the House, a bipartisan group has sent the Bush administration a letter asking that they file a case with the World Trade Organization against OPEC, for restricting production and colluding to raise prices. None of which addresses the real problem. Our ever-increasing demand for energy. Over the last 20 years, demand has risen 1 percent a year. Refining capacity has not.

JOHN FLEMY, AMERICAN PETROLEUM INST.: We consume about 20 million barrels a day of petroleum and we only have refining capacity to supply around 16.7 million barrels a day. So we need more refineries or we at least need more refining capacity.

TUCKER: But building refineries is never a popular idea. It seems we'd rather drive our cars, blame OPEC and avoid the real issue.

PAUL ROBERTS, AUTHOR, "END OF OIL": Wondering what OPEC is going to do at its meeting, this is all window dressing on a much larger question. Which is a lack of an energy policy. You know, we have a patchwork energy policy, and we've never really been willing to attack it in a comprehensive long-term way.

TUCKER (on camera): We'd rather yell about it. Ignore the fact that despite the recent run-up in prices, Americans still pay considerably less than consumers in, say, Britain, where the price is about $5.25 per gallon.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

KAGAN: We are keeping our eyes on the manslaughter trial of former NBA star Jayson Williams. He is facing eight charges in connection with a shooting that took place at his estate in New Jersey last year. The limousine driver hired for the night was shot and killed. There was a possibility that we heard that Jayson Williams would testify in his own defense. He addressed that idea in court just a few minutes ago, and this is what he had to say.

(BEGIN VIDEO CLIP)

JAYSON WILLIAMS, DEFENDANT: Yes, I understand my rights. Under advice of my counsel, I will not testify. I am innocent. I put my trust in God, and I have great confidence in this jury.

(END VIDEO CLIP)

KAGAN: And so Jayson Williams, in fact, will not take the stand in his own defense. He faces, as I mentioned, eight charges in connection with that shooting last year of Gus Christofi, lost his life in that shooting. If he's convicted, Jayson Williams could face up to 55 years in prison. We'll have more from that trial in just a little bit.

Also, the new man in charge of the search for weapons of mass destruction in Iraq. An exclusive interview with him and what he says are interesting new discoveries.

A perspective jury out to get Scott Peterson? That is what his attorney alleges.

And we are checking out the clothes, Tommy Hilfiger is our guest today. He's showing off his new line and talking about what it's like to lead a multi-million dollar company.

(COMMERCIAL BREAK)

KAGAN: Final jury selection in the Scott Peterson double murder trial is still at least six weeks away. And already, one potential juror faces a possible perjury charge. The woman has been ordered back to court on May 11 for allegedly saying Peterson is, quote, "guilty as hell. " Peterson's defense team raised the issue in court after receiving a tip from an acquaintance of the woman. The woman denies saying that she thinks Peterson is guilty.

Also in California, public defenders have withdrawn a motion to force jailhouse visits for Marcus Wesson, who's accused of killing nine of his children. The attorneys say the sheriff's department has indicated that they'll probably lift the visitation restriction very soon. Meanwhile, the county coroner says nothing unusual was found in the blood of the victims. Meaning, they apparently were not drugged before they were killed.

In the Michael Jackson case, grand jurors in Santa Barbara reportedly have heard from the 14-year-old behind the molestation accusation. That's according to the Associated Press citing unnamed sources. Sources tell CNN that the man who introduced Jackson and the boy also appeared before the grand jury yesterday.

Jackson is in Washington, D.C., thousands of miles from the grand jury room. The pop star meets with Texas Democrat Sheila Jackson Lee later today. And yesterday he visited with several members of the Congressional Black Caucus to lend his support to the fight against AIDS in Africa. Our Sean Callebs joins us from Washington to bring us up to date on that.

Sean, good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning to you Daryn. And indeed the king of pop, not exactly king of the Hill. Michael Jackson had hoped for a meeting with the entire Congressional Black Caucus. It didn't happen. However, he did met with Pennsylvania Representative Chaka Fattah and about a dozen members of the caucus late Tuesday. As you mentioned, Jackson is slated to meet with Texas Representative Sheila Lee about 2:00 Eastern Time. And later, both are scheduled to meet with the media.

So why you ask is the singer accused of child molestation here in Washington? Jackson is here to promote the fight against AIDS in Africa. Now, during his meeting Tuesday, the pop star read a brief statement, pledging to do whatever he can to fight AIDS and praised law parks for raising awareness and funding to fight the ongoing problem in Africa. Congressman Fattah says he is happy to meet with a celebrity who is doing what he can to fight a global problem.

When pressed about Jackson's legal trouble, Fattah had this to say.

(BEGIN VIDEO CLIP)

REP. CHAKA FATTAH (D), PENNSYLVANIA: Just as you might have been the subject of a speeding ticket allegation or some more serious allegation, until someone is proven to have done something wrong, to shun them or act as if they do not deserve to be heard, I think would be an insult to our responsibilities here as representatives of this country, which is a nation of laws.

(END VIDEO CLIP)

CALLEBS: Now, most of the members of the Black Caucus said they couldn't meet with Jackson because of conflicting schedules. But privately aides told CNN many simply don't want their picture taken with Jackson. The 45 year old has pleaded not guilty to felony counts of child molestation -- Daryn.

KAGAN: Scheduling conflicts right up there with wardrobe malfunction.

(LAUGHTER)

KAGAN: Will not be available. I understand, though, Michael Jackson is also getting an award tonight?

CALLEBS: Yes, indeed. Actually the award is going to be tomorrow. It is going to be for his ongoing efforts trying to raise awareness about the problem ongoing in Africa, and also doing what he can to raise funding to fight that global problem.

KAGAN: And any word from Congressman Lee, why -- Jackson Lee, why she's agreed to meet with him?

CALLEBS: Basically, from all the information we're getting, the same reason that the representative from the Philadelphia district said he met with Jackson. He is a celebrity. He is someone with name recognition and has been, and is doing what he can to continue to bring awareness and try and bring more focus on the problem going on in Africa.

KAGAN: Interesting images. Michael Jackson on Capitol Hill. Sean...

CALLEBS: And we'll hear more at 2:45 today, too, from both of them.

KAGAN: All right. Looking -- we will be seeing that. Thank you, Sean Callebs.

It's National Sleep Week. Get up and we want to hear from you. Coming up on CNN, in the next hour of CNN LIVE TODAY, we have a sleek -- sleep expert here, wants to know what is keeping you or perhaps your kids up at night. He is here to answer your questions. So send your questions to livetoday@cnn.com.

And stay awake until the next hour. Gerri Willis is going to help us do that. She is always tiptop shape.

What do you have for us today -- Gerri.

GERRI WILLIS, CNNfn PERSONAL FINANCE EDITOR: Hey, Daryn. We're going to talk about home sweet home. It's great to have a space of your home, even better not to pay the landlord. But what about the tax breaks this April 15. We'll give you the details next on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: Well, you've heard it said, in life there is nothing certain but death and taxes. When it comes to buying and owning a home, there are some ways to shelter yourself from being taxed to death.

Here with some tips CNNfn personal correspondent Gerri Willis in New York.

Gerri, good morning.

WILLIS: Hey, Daryn. Well, you know no magic here. Take the mortgage interest deduction. This is the biggest benefit you're going to get from Uncle Sam. Make sure you take advantage of it. It's available to people with mortgages -- mortgage balances, that is, that are lower than $1 million. It's a no-brainer. Look for Form 1098 from your brow -- from your lender.

KAGAN: And if you are making a sale or paying the points, that could also help you out?

WILLIS: Yes, this is a big benefit too. You know, if you go out and get a home loan you may pay points. and that's just a fee essentially that borrowers pay to get the loan in the first place. You can write those off. Now, if you refinanced, you've got to write it off over the term of the loan. So if you have a 30-year loan you have to write off the points over 30 years. Fifteen years, you have got to write those points off after 15 years.

But here's a surprising thing, Daryn, that I found out in reporting this story. Listen to this. If you buy a house, the seller pays your points. You can deduct them. That's right. If your seller volunteers to pay the points for you on your loan, you can deduct those.

KAGAN: Take the exclusion.

WILLIS: That's right, if you are selling. Now we're assuming you're on the sell side of the equation. Selling your house you get a huge tax benefit. The government lets you shelter some of those capital gains, as much as $250,000 if you are a single tax payer, $500,000 if you are married filing jointly. So don't miss out on that. And the IRS is even making the rules here more liberal. If for example, you have some kind of medical condition that requires you to leave the house, you can still leave and shelter the income. And those medical conditions can include having twins.

KAGAN: Oh. All right. There are some people around here who will need to know that.

(LAUGHTER)

WILLIS: Right, exactly.

KAGAN: Exactly, a few of them.

OK. When you are buying a home, there's cost associated with that. And you want to keep that in mind.

WILLIS: Right, you want to keep track of the bases. This is the amount of investment in your house for tax purposes. And when you buy that house you have got to keep track of a lot of things: the attorney fees, broker fees, all of that. You're going to roll that into your purchase price. That will become important when you are reporting the amount of money you have invested in the home when you sell it. So keep that in mind.

KAGAN: And finally, don't forget about those pesky real estate taxes.

WILLIS: Yes, that's a big write-off, too. The only problem here and the only snag for some people who aren't paying a lot of attention. Your local government is going to send you a statement about how much you are paying. It may roll in some other things, like how much you are paying for garbage pickup, or if you have been assessed money to have the street in front of your house fixed. Make sure you are only picking up those real estate taxes.

KAGAN: Gerri Willis, all very good tips. Appreciate it, especially during tax time.

WILLIS: There you go. Thanks.

KAGAN: They've agreed that she will testify. The question is when will Condoleezza Rice testify in public? A live report from the White House is straight ahead.

And an all-American designer launches a new line. Tommy Hilfiger is here; right here in Atlanta with us to talk about a line he's hauling "H."

(COMMERCIAL BREAK)

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Aired March 31, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning, we're at CNN headquarters in Atlanta. I'm Daryn Kagan. Let's get started with the check of the headlines at this hour.
In Iraq, grisly scenes from two attacks in the explosive Sunni Triangle region. Five U.S. service members are dead after a roadside bombing and four civilian contractors are dead following a grenade attack. Both attacks came in or near Fallujah. Eyewitnesses report a burning body being dragged through the streets, while Iraqi crowds cheered. In minutes, we'll bring you the latest in a live report.

CNN has learned of a secret operation, which was approved in the early days of the Bush administration to mount retaliatory attacks against Iraq. Weeks after coming into office, Operation Desert Badger was approved by President Bush. It called for a massive strike against if a U.S. pilot was shot down, while flying over the country. Iraq repeatedly claimed to be shooting at U.S. planes. Recently, critics have said the administration was pre-occupied with Iraq well before the September 11 attacks. President Bush confirmed the operation's existence, says earlier this year it was an extension of an existing policy.

In Wisconsin, family and friends are looking for a young girl seen here. Audrey Seiler was last seen on this video surveillance early Saturday leaving her dorm at the university of Wisconsin, Madison. Volunteers have combed through nearby swamps, so far they say though, police have very few leads on the 20-year-old woman's disappearance.

And John Kerry is in Boston for minor shoulder surgery. The presidential hopeful needs treatment to repair a torn rotator cuff. Kerry's injury stems from a minor accident at a campaign stop last January. The senator will go home for a few days of rest, following the procedure.

The first hour of CNN LIVE TODAY begins right now.

We are going to begin this hour in Iraq. The epicenter of the insurgency, the Sunni Triangle. Two separate attacks in and around the region have left at least nine people dead, five of them U.S. military personnel. And in one grisly incident, crowds reportedly dragged at least one of the bodies through the streets.

Our Jim Clancy is in Baghdad with more on these attacks -- Jim. JIM CLANCY, CNN CORRESPONDENT: Well, Daryn, if a picture is worth 1,000 words, the pictures coming out of Fallujah today were 1,000 nightmares. Four U.S. civilian contractors, I shouldn't say U.S.; we don't know all of their nationalities just yet. We know they were working with the U.S. Civilian Provisional Authority, though. They were in Fallujah for some reason, the U.S. military not able to confirm why.

Gunmen from two directions set upon them with hand grenades. Apparently two vehicles that they were riding in caught fire and then their vehicles were sprayed with small arms fire. The resulting scene one of devastation and death: the vehicles on fire, the charred bodies inside. Iraqis, some of them, pulled those bodies from the cars and dragged them through the streets hanging them, or at least parts of them from a bridge nearby. It was a horrific scene, and one in which some of the people on the scene chanted, celebrated the deaths and chanted long live Saddam Hussein. No other details about those people that were involved there pending the notification of the next of kin.

Now, this was predicted that there would be a spike in attacks. One member of the Iraqi Governing Council told us that even before this day.

(BEGIN VIDEO CLIP)

AYAD ALLAWI, IRAQ GOVERNING COUNCIL: It will definitely get worse before it gets better. We know that there are a lot of enemies, elements who are trying to undermine the situation in Iraq now. They are trying to create problems in Iraq to stop the process from moving forward. A process of sovereignty and the process of democracy.

(END VIDEO CLIP)

CLANCY: Now, nearby Fallujah, a roadside bomb killed five U.S. soldiers with the First Infantry Division. They were driving in an area of farmland -- rich farmland around that region when the bomb went off, killing all of them. Apparently it was underneath the vehicle. No other details on that forthcoming just yet -- Daryn.

KAGAN: Jim Clancy, we'll hear more from you and from Baghdad in the next hour.

Right now we move on to the latest on Condoleezza Rice's return appearance before the 9/11 Commission. This time, as you know, it will be in public. That news breaking just about 24 hours ago on this program. Administration officials say that it's likely the president's national security adviser will testify at the end of next week.

Earlier, the commission's chairman appeared on CNN's "AMERICAN MORNING" to discuss the focus of Rice's questioning.

(BEGIN VIDEO CLIP)

TOM KEAN, CHMN., 9/11 COMMISSION: In the transition from the Clinton to the Bush administrations what did she say? What did they tell her? What did we know then about terrorism? What was the advice? Then what were the policies of the Bush administration, as they proceeded ahead? And we want to clear up any discrepancies between her testimony and other people's. and most of all, we suppose we want to know what the policy is now. I mean what are we doing? How are we doing it? How successful does she think we are? And is she recommending any changes? Are they going to go in any different directions?

(END VIDEO CLIP)

KAGAN: And a footnote here for you. Today a technical review panel for the Environmental Protection Agency will hold its first meeting. The focus is on the health concerns of workers and residents affected by the collapse of the World Trade Center buildings.

A Canadian man is under arrest on terrorism charges that span the Atlantic Ocean. The Royal Canadian Mounted Police arrested the 29- year-old Mohammad Momin Kuaja (ph). And they are saying very little about the arrest, other than the case involves crimes in Ottawa and London. Family members of the Canadian-born man say they were asked about the Madrid bombings.

Meanwhile, a report by Canada's auditor general warns that its borders and airports remain vulnerable to terrorist attacks and that urgent movements must be made. The country has spent billions in updating security since September 11. The report says there's a dangerous lack of communication between security agencies.

A decision that was made halfway around the world is hitting home at your corner gas station. The OPEC oil cartel today shrugged off concerns about surging oil prices and decided to go ahead with a planned production cut. That likely will mean more pain at the pump for many of us already wrestling with record gas prices.

Our Diana Muriel is in London with more on the OPEC decision -- Diana.

DIANA MURIEL, CNN LONDON CORRESPONDENT: Yes, Daryn. Well, OPEC has not officially confirmed this decision to cut production by a million barrels a day to 23.5 million barrels. It was something, though, that was flagged up at their last meeting in Algiers in February. They said they were going to do this in the beginning of April. They said they were going to do it again at the end of April. That may not happen. We have to wait and see. There seemed to have been a split amongst OPEC oil ministers.

But the affect on the markets was immediate. Even without official confirmation from OPEC itself, we saw the price of gasoline spiking in the New York mercantile exchange to an all time high. We saw the price of light, sweet crude for May delivery in New York also leaping by 28-cents. So the markets have recognized that there is this cut. and that, of course, will feed through eventually to prices at the pump. It won't feed through immediately. It will take about six weeks or so before the effects of this production cut, if it is confirmed, are felt. But in the meantime, Americans are already paying extremely high prices for gasoline. Something of an average of 1.74-cents for a gallon, and that is the highest that we've seen it since 1985. Of course, in an election year, this could be fairly uncomfortable for the administration, a lot of pressure on the U.S. president to try and alleviate this.

In the meantime, the administration is saying that it's going to continue replenishing the stocks of the strategic reserve. They see that as a point of national security, that that must be at full capacity. And that the administration has said it is going to put something like 25 million barrels into that before Election Day. So the effects of the OPEC decision will also hurt very soon in the United States -- Daryn.

KAGAN: Just what drivers here in the U.S. did not want to hear. Diana Muriel in London, thank you for that report.

Well we're talking about the politics of this. The surging gas prices creating political inroads this presidential year. Who can best prime the pump: President Bush, candidate Kerry, or perhaps even you?

Our financial news reporter Bill Tucker takes a look.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): With gasoline prices headed well north of $2 a gallon in some places, voter anger is rising, and the political rhetoric is getting interesting.

REP. EDWARD MARKEY (D), MASSACHUSETTS: The Christians had a better chance against the lions than the American consumer has against the OPEC cartel.

TUCKER: Gasoline stations have become the backdrop of campaign moments, with demands of action to bring prices down.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We should be putting pressure on OPEC to raise the supply and not allow those countries to undermine the economies of the world.

TUCKER: The Republicans have their own response.

UNIDENTIFIED MALE (voice-over): If Kerry's gas tax increase were law, the average family would pay $657 more a year.

TUCKER: In the House, a bipartisan group has sent the Bush administration a letter asking that they file a case with the World Trade Organization against OPEC, for restricting production and colluding to raise prices. None of which addresses the real problem. Our ever-increasing demand for energy. Over the last 20 years, demand has risen 1 percent a year. Refining capacity has not.

JOHN FLEMY, AMERICAN PETROLEUM INST.: We consume about 20 million barrels a day of petroleum and we only have refining capacity to supply around 16.7 million barrels a day. So we need more refineries or we at least need more refining capacity.

TUCKER: But building refineries is never a popular idea. It seems we'd rather drive our cars, blame OPEC and avoid the real issue.

PAUL ROBERTS, AUTHOR, "END OF OIL": Wondering what OPEC is going to do at its meeting, this is all window dressing on a much larger question. Which is a lack of an energy policy. You know, we have a patchwork energy policy, and we've never really been willing to attack it in a comprehensive long-term way.

TUCKER (on camera): We'd rather yell about it. Ignore the fact that despite the recent run-up in prices, Americans still pay considerably less than consumers in, say, Britain, where the price is about $5.25 per gallon.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

KAGAN: We are keeping our eyes on the manslaughter trial of former NBA star Jayson Williams. He is facing eight charges in connection with a shooting that took place at his estate in New Jersey last year. The limousine driver hired for the night was shot and killed. There was a possibility that we heard that Jayson Williams would testify in his own defense. He addressed that idea in court just a few minutes ago, and this is what he had to say.

(BEGIN VIDEO CLIP)

JAYSON WILLIAMS, DEFENDANT: Yes, I understand my rights. Under advice of my counsel, I will not testify. I am innocent. I put my trust in God, and I have great confidence in this jury.

(END VIDEO CLIP)

KAGAN: And so Jayson Williams, in fact, will not take the stand in his own defense. He faces, as I mentioned, eight charges in connection with that shooting last year of Gus Christofi, lost his life in that shooting. If he's convicted, Jayson Williams could face up to 55 years in prison. We'll have more from that trial in just a little bit.

Also, the new man in charge of the search for weapons of mass destruction in Iraq. An exclusive interview with him and what he says are interesting new discoveries.

A perspective jury out to get Scott Peterson? That is what his attorney alleges.

And we are checking out the clothes, Tommy Hilfiger is our guest today. He's showing off his new line and talking about what it's like to lead a multi-million dollar company.

(COMMERCIAL BREAK)

KAGAN: Final jury selection in the Scott Peterson double murder trial is still at least six weeks away. And already, one potential juror faces a possible perjury charge. The woman has been ordered back to court on May 11 for allegedly saying Peterson is, quote, "guilty as hell. " Peterson's defense team raised the issue in court after receiving a tip from an acquaintance of the woman. The woman denies saying that she thinks Peterson is guilty.

Also in California, public defenders have withdrawn a motion to force jailhouse visits for Marcus Wesson, who's accused of killing nine of his children. The attorneys say the sheriff's department has indicated that they'll probably lift the visitation restriction very soon. Meanwhile, the county coroner says nothing unusual was found in the blood of the victims. Meaning, they apparently were not drugged before they were killed.

In the Michael Jackson case, grand jurors in Santa Barbara reportedly have heard from the 14-year-old behind the molestation accusation. That's according to the Associated Press citing unnamed sources. Sources tell CNN that the man who introduced Jackson and the boy also appeared before the grand jury yesterday.

Jackson is in Washington, D.C., thousands of miles from the grand jury room. The pop star meets with Texas Democrat Sheila Jackson Lee later today. And yesterday he visited with several members of the Congressional Black Caucus to lend his support to the fight against AIDS in Africa. Our Sean Callebs joins us from Washington to bring us up to date on that.

Sean, good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning to you Daryn. And indeed the king of pop, not exactly king of the Hill. Michael Jackson had hoped for a meeting with the entire Congressional Black Caucus. It didn't happen. However, he did met with Pennsylvania Representative Chaka Fattah and about a dozen members of the caucus late Tuesday. As you mentioned, Jackson is slated to meet with Texas Representative Sheila Lee about 2:00 Eastern Time. And later, both are scheduled to meet with the media.

So why you ask is the singer accused of child molestation here in Washington? Jackson is here to promote the fight against AIDS in Africa. Now, during his meeting Tuesday, the pop star read a brief statement, pledging to do whatever he can to fight AIDS and praised law parks for raising awareness and funding to fight the ongoing problem in Africa. Congressman Fattah says he is happy to meet with a celebrity who is doing what he can to fight a global problem.

When pressed about Jackson's legal trouble, Fattah had this to say.

(BEGIN VIDEO CLIP)

REP. CHAKA FATTAH (D), PENNSYLVANIA: Just as you might have been the subject of a speeding ticket allegation or some more serious allegation, until someone is proven to have done something wrong, to shun them or act as if they do not deserve to be heard, I think would be an insult to our responsibilities here as representatives of this country, which is a nation of laws.

(END VIDEO CLIP)

CALLEBS: Now, most of the members of the Black Caucus said they couldn't meet with Jackson because of conflicting schedules. But privately aides told CNN many simply don't want their picture taken with Jackson. The 45 year old has pleaded not guilty to felony counts of child molestation -- Daryn.

KAGAN: Scheduling conflicts right up there with wardrobe malfunction.

(LAUGHTER)

KAGAN: Will not be available. I understand, though, Michael Jackson is also getting an award tonight?

CALLEBS: Yes, indeed. Actually the award is going to be tomorrow. It is going to be for his ongoing efforts trying to raise awareness about the problem ongoing in Africa, and also doing what he can to raise funding to fight that global problem.

KAGAN: And any word from Congressman Lee, why -- Jackson Lee, why she's agreed to meet with him?

CALLEBS: Basically, from all the information we're getting, the same reason that the representative from the Philadelphia district said he met with Jackson. He is a celebrity. He is someone with name recognition and has been, and is doing what he can to continue to bring awareness and try and bring more focus on the problem going on in Africa.

KAGAN: Interesting images. Michael Jackson on Capitol Hill. Sean...

CALLEBS: And we'll hear more at 2:45 today, too, from both of them.

KAGAN: All right. Looking -- we will be seeing that. Thank you, Sean Callebs.

It's National Sleep Week. Get up and we want to hear from you. Coming up on CNN, in the next hour of CNN LIVE TODAY, we have a sleek -- sleep expert here, wants to know what is keeping you or perhaps your kids up at night. He is here to answer your questions. So send your questions to livetoday@cnn.com.

And stay awake until the next hour. Gerri Willis is going to help us do that. She is always tiptop shape.

What do you have for us today -- Gerri.

GERRI WILLIS, CNNfn PERSONAL FINANCE EDITOR: Hey, Daryn. We're going to talk about home sweet home. It's great to have a space of your home, even better not to pay the landlord. But what about the tax breaks this April 15. We'll give you the details next on CNN LIVE TODAY.

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KAGAN: Well, you've heard it said, in life there is nothing certain but death and taxes. When it comes to buying and owning a home, there are some ways to shelter yourself from being taxed to death.

Here with some tips CNNfn personal correspondent Gerri Willis in New York.

Gerri, good morning.

WILLIS: Hey, Daryn. Well, you know no magic here. Take the mortgage interest deduction. This is the biggest benefit you're going to get from Uncle Sam. Make sure you take advantage of it. It's available to people with mortgages -- mortgage balances, that is, that are lower than $1 million. It's a no-brainer. Look for Form 1098 from your brow -- from your lender.

KAGAN: And if you are making a sale or paying the points, that could also help you out?

WILLIS: Yes, this is a big benefit too. You know, if you go out and get a home loan you may pay points. and that's just a fee essentially that borrowers pay to get the loan in the first place. You can write those off. Now, if you refinanced, you've got to write it off over the term of the loan. So if you have a 30-year loan you have to write off the points over 30 years. Fifteen years, you have got to write those points off after 15 years.

But here's a surprising thing, Daryn, that I found out in reporting this story. Listen to this. If you buy a house, the seller pays your points. You can deduct them. That's right. If your seller volunteers to pay the points for you on your loan, you can deduct those.

KAGAN: Take the exclusion.

WILLIS: That's right, if you are selling. Now we're assuming you're on the sell side of the equation. Selling your house you get a huge tax benefit. The government lets you shelter some of those capital gains, as much as $250,000 if you are a single tax payer, $500,000 if you are married filing jointly. So don't miss out on that. And the IRS is even making the rules here more liberal. If for example, you have some kind of medical condition that requires you to leave the house, you can still leave and shelter the income. And those medical conditions can include having twins.

KAGAN: Oh. All right. There are some people around here who will need to know that.

(LAUGHTER)

WILLIS: Right, exactly.

KAGAN: Exactly, a few of them.

OK. When you are buying a home, there's cost associated with that. And you want to keep that in mind.

WILLIS: Right, you want to keep track of the bases. This is the amount of investment in your house for tax purposes. And when you buy that house you have got to keep track of a lot of things: the attorney fees, broker fees, all of that. You're going to roll that into your purchase price. That will become important when you are reporting the amount of money you have invested in the home when you sell it. So keep that in mind.

KAGAN: And finally, don't forget about those pesky real estate taxes.

WILLIS: Yes, that's a big write-off, too. The only problem here and the only snag for some people who aren't paying a lot of attention. Your local government is going to send you a statement about how much you are paying. It may roll in some other things, like how much you are paying for garbage pickup, or if you have been assessed money to have the street in front of your house fixed. Make sure you are only picking up those real estate taxes.

KAGAN: Gerri Willis, all very good tips. Appreciate it, especially during tax time.

WILLIS: There you go. Thanks.

KAGAN: They've agreed that she will testify. The question is when will Condoleezza Rice testify in public? A live report from the White House is straight ahead.

And an all-American designer launches a new line. Tommy Hilfiger is here; right here in Atlanta with us to talk about a line he's hauling "H."

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