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American Morning

Michael Jackson Indicted; Rising Cost of War in Iraq; President Bush's Standing Against John Kerry Has Improved

Aired April 22, 2004 - 9:00   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.


BILL HEMMER, CNN ANCHOR: Good morning. What's next for Michael Jackson? A grand jury indicting him in a child molestation investigation.
The U.S. nowhere near finished paying for Iraq. The battle in Washington over how much more money is needed and how soon.

Spring weather still hitting hard across the country. A giant hailstorm is more on the way.

And the cruise ship that has it all and then some. The Queen Mary II now part of the Manhattan skyline on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

O'BRIEN: Good morning. Welcome back, everybody.

Other stories that we're following this morning, the judge that's overseeing the Kobe Bryant case has made a huge decision about bringing the medical history of the alleged victim into the trial. Jeff Toobin is going to join us in just a few moments to talk about just how big a setback this might be for the defense.

HEMMER: Also, on this Earth Day today, hybrid car. Sales are said to be on the rise, but how much? And are hybrids the safety factor that many consumers have looked to before? We'll get to that issue this morning. It is Earth Day here on Earth.

O'BRIEN: Hi, Jack.

JACK CAFFERTY, CNN ANCHOR: This is Earth Day?

HEMMER: Yes.

CAFFERTY: It snuck up on me again this year.

HEMMER: Yesterday was Professional Assistant's Day.

CAFFERTY: Yes?

HEMMER: Yes. It used to be Secretary's Day. Don't go there.

CAFFERTY: Well, we can't say Secretary's Day anymore.

HEMMER: I said don't go there. CAFFERTY: First day is Secretary's Day. It will be nice when we run out of days.

How much is too much information about the presidential candidates? Got your medical records, military records, tax records, yadda, yadda, yadda. Enough, not enough, you want to know more, less? AM@CNN.com. I'm just hanging on tenor (ph) hooks here.

HEMMER: Spoken with enthusiasm. A man who surely cares.

CAFFERTY: What time does the bus to Queens come by here?

HEMMER: Fifty-eight minutes.

O'BRIEN: Don't make me laugh. It hurts my stomach.

HEMMER: Let's get to our top stories again starting our third hour this morning.

There's a U.S. general in Fallujah warning the insurgents to disarm or face the consequences. U.S. Marines had agreed to stop the operations if insurgents turned over the weapons. This video from yesterday with the U.S. Marines doing action there. Military sources say they are not pleased with the turnover. They say guerrillas have days and not weeks to lay down their arms.

Saudi officials blaming al Qaeda for a car bombing in Riyadh. Four people were killed, more than 140 people injured yesterday. Officials recently diffused five other bombings and say simultaneous bombings are an al Qaeda trademark. There's a group sympathetic to al Qaeda claiming responsibility for yesterday. The Saudi ambassador, Prince Bandar bin Sultan, says his country is now in, "a total war against terrorists."

In this country, federal officials in Illinois today trying to determine if parts of it qualify for federal relief money. A series of tornadoes struck the state Tuesday night in Utica, southwest of Chicago by 90 miles. Crews recovered more bodies yesterday, bringing the death toll there to eight. The governor yesterday issued a state disaster declaration there.

Also, some wild weather in Oklahoma. Thunderstorms dumping baseball-sized hail and heavy rain in parts of the state, contributing to go a car crash that killed one woman. Another woman was rescued after being trapped in her car by hail and flood waters.

You can see the videotape there and what the folks were dealing there. There's another piece of tape here maybe we'll get to a bit later with Chad that literally shows the sleet and hail piling up in piles, coming off the roofs up there.

O'BRIEN: What a mess, absolutely.

(WEATHER REPORT)

O'BRIEN: Well, Michael Jackson has been indicted by a California grand jury. The charges are confidential at this point, but the grand jury was investigating the child molestation case against Jackson.

CNN's Miguel Marquez live for us in Santa Barbara, California, this morning.

Hey, Miguel. Good morning, again.

MIGUEL MARQUEZ, CNN CORRESPONDENT: (AUDIO GAP) those proceedings were sealed. WE do know some stuff about what happened there, the 13 days the grand jury heard and considered testimony against Michael Jackson on molestation charges. In grand jury proceedings, 12 of 19 grand jurors must agree with a strong suspicion of guilt -- that's a legal standard -- that they believe Mr. Jackson was guilty of that individual charge. They vote on each and every charge.

Back in January, Jackson was charged with seven counts of lewd and lascivious acts against a child under 14 and two counts of giving a child an intoxicating agent. On February 2003 -- all of this stems from then -- he was believed -- the allegations are that he molested a child at his Neverland Ranch. A search there was conducted back in November 2003.

There have been 18 searches, dozens of computers. Hundreds of videos, DVDs and mini DVDs have been taken from Mr. Jackson's Neverland Ranch and other locations.

Mr. Jackson's lawyers hopping right on this. Cleared a statement with the court system here in Santa Barbara before the charges were even announced, the new charges. They say that they are patently false and that they remind everybody that these are allegations. Mr. Jackson will have to re-appear in court on April 30 to be arraigned on these charges, and his lawyers say he will plead not guilty -- Soledad.

O'BRIEN: No surprise there. Miguel Marquez for us before we get to Bill Dworin.

In fact, Bill Dworin is a retired LAPD detective. He was the lead investigator in the 1993 child molestation case against Michael Jackson. He joins us from LA this morning with his reaction to the Jackson indictment.

You just heard what Miguel Marquez had to say, updating us on the case there. We're still unclear of the charges exactly. But if Michael Jackson is indicted, do you think that means that there is enough evidence that it will just go to trial and not necessarily much more than that, right? That's fair to say?

BILL DWORIN, RETIRED LAPD DETECTIVE: Yes, that's very fair to say. We don't know what the prosecution has in the way of physical evidence, as well as what the testimony was in the grand jury hearing. So we're still at a loss to know what exactly has occurred.

O'BRIEN: There are two things you have said in the past, and I want to go through them individually. First, you said you're surprised that there were not more charges filed against Michael Jackson. And should I read into that that you think that this is potentially a weak case?

DWORIN: No. Again, we don't know.

We know that in a situation where a suspect, a pedophile seduces a child, the activity is a progression from a touching to a fondling to whatever else has occurred. In this case, we don't know how long this abuse has been occurring. The dates indicate it's been a short amount of time, so it's possible that no further abuse occurred during this time period.

O'BRIEN: And we'll say alleged abuse because obviously...

DWORIN: Yes, alleged abuse.

O'BRIEN: ... this is going to trial, but not necessarily a conviction there. The second thing that you have said is that the timeline in this case is unusual. What are you talking about?

DWORIN: Well, it appears from the initial complaint that was issued that the abuse occurred after the show that was showing Jackson with the boy, that the defense attorney general was hired. The abuse occurred after this time. So I'm concerned about the time line. Again, we don't know what was presented to the grand jury, and that timeline, may, in fact, be different.

O'BRIEN: To what degree do you think that the case you worked on back in 1993 is going to play a large role in the current case that is being worked on today?

DWORIN: It would depend upon if the alleged victim from 1993 testifies in the trial, the upcoming trial. If he does, it will show a pattern of activity, things that occurred in '93 continues to occur today in 2003.

O'BRIEN: Do you think all of the media attention -- and I have to imagine that the media attention is only going to go more and greater as the this heads into a trial -- do you think it gives Michael Jackson an advantage, or do you think it gives prosecutors an advantage, or do you think that it's just a wash?

DWORIN: Well, because of the grand jury, we don't know. The public doesn't know what was presented, what the physical evidence is. And I think this will help allow the Santa Barbara district attorney to select a jury pool, a jury from a jury pool who is not corrupted by the media attention.

O'BRIEN: Bill Dworin, a retired LAPD detective, joining us this morning. Thanks for your time and some of your insight. Appreciate it -- Bill.

DWORIN: Thank you.

HEMMER: Legal implications, Soledad. Our senior legal analyst, Jeffrey Toobin, now checks in here on AMERICAN MORNING.

Good morning to you. JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Good morning.

HEMMER: Earlier today, you said it's virtually the same case as before. What do you mean by that?

TOOBIN: Well, that's what it appears. We don't know. But based on the witnesses who testified before the grand jury, it looks like that the prosecutor's attempt to find additional victims, to find additional incidents, was not successful, and that this case is based solely on the allegations made by the former cancer patient around the time of the documentary in February of 2003.

HEMMER: Back to you initial point, though, what we don't know at this point is how much is there or is not there.

TOOBIN: A lot. I mean, think about what we don't know. There were those very celebrated notorious raids on Neverland, where many, many officers, dozens of officers went in there and looked for evidence against Michael Jackson around the time he was arrested.

What did they find? We don't know. Maybe they found incriminating evidence, maybe they found nothing.

I mean, that's the kind of thing that will come out of the trial. But the significant thing is that, remember, District Attorney Sneddon said please come forward if you've been abused by Michael Jackson. It appears, based on what we've seen so far, that no one has.

HEMMER: A lot of legal analysts have said Michael Jackson doesn't have counsel around him to prevent him from doing things like he did on top of that bus back -- I think it was January. You were 20 feet away from him at the time.

TOOBIN: I was. It was really one of the most surreal experiences of my life standing there, because you expect certain things to happen in a courtroom and in these procedures. I've covered these high-profile cases before, and one of the terms I always object to that people use is "media circus" and "circus" because usually they're not a circus.

I remember sitting there thinking this is a circus. This was so bizarre. Mark Geragos and Ben Brafman were at about 50 feet away from Michael Jackson. They clearly had no idea he was going to do this.

HEMMER: What was their reaction?

TOOBIN: Well, they were just...

HEMMER: And shaking their mouths.

TOOBIN: ... in shock. You can be sure when Michael Jackson returns to court next Friday to be arraigned this will not be repeated, because these are serious lawyers. And they're not going to allow this to happen again.

HEMMER: Quickly, away from Michael Jackson, Kobe Bryant. You have said earlier today that you're not quite sure it is that significant of a setback for the defense.

TOOBIN: Certainly it's a setback. They would like to have had these hospital records. But it's worth pointing out that this does not mean when this accuser testifies on the witness stand she will be barred from having to discuss her mental health history.

They can still ask about that. And the big issue, the discussion of her sexual history, whether the defense can point out -- can claim that she had sex with other people around the time of the incident with Kobe Bryant, that issue was not decided at all by the decision yesterday. That is a more important decision that's coming up in the next few weeks.

HEMMER: Next week. Monday...

TOOBIN: The hearing next week.

HEMMER: All right. Thanks, Jeff. Jeff Toobin -- Soledad.

O'BRIEN: Still to come this morning, the rising cost of war in Iraq. Just how much money is needed? And how much has already been spent? We're going to take you live to the Pentagon in just a moment.

HEMMER: Also, on the campaign front, despite controversial books, 9/11 testimony, and that ongoing war, President Bush is still strong in the poes. In fact, he came up this past week. Jeff Greenfield breaks down the numbers in a moment.

O'BRIEN: And the cars of the future, well, they're here already. But just who is buying those half-gas, half-electric creations? We'll talk about the newest hybrid cars coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: With the recent surge of violence in Iraq, the cost of the Americans lives has taken a tragic turn. And now there are new questions about what the continuing effort there is going to cost in dollars, and cents as well. For details on that and the latest on the military situation in Iraq, let's go right to the Pentagon and our correspondent, Barbara Starr, who's there.

Hey, Barbara. Good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Soledad.

A political and a military question now facing the White House. They are going to have to ask Congress for more money, perhaps $50 billion to $60 billion to fight the war in Iraq. But will they ask Congress for the money before or after the November election?

Yesterday's hearings on Capitol Hill made it very clear the price tag is going up. One reason, 20,000 extra troops, of course, staying in Iraq for about 90 days to deal with the insurgency. A lot of questions from Capitol Hill.

(BEGIN VIDEO CLIP)

GEN. RICHARD MYERS, CHAIRMAN, JOINT CHIEFS OF STAFF: Additional time in Iraq is going to cost us more money. We estimate right now -- we are working those estimates right now, let me just say that.

(END VIDEO CLIP)

STARR: General Myers going on to say the extra price tag will be at least $700 million to keep those 20,000 troops there for 90 days. The war is now costing about $5 billion a month. And operationally on the ground today in Iraq, growing concern, Soledad, about the situation in Fallujah. More fighting overnight.

We are told by Pentagon officials heavy fighting in the northwest section of the city. So heavy that they had to stop humanitarian assistance, convoys from coming into the city. The top general in the area says that weapons turnover is not going very well. Now week three of the insurgency. A lot of questions about how long this very tenuous cease-fire status quo may go on -- Soledad.

O'BRIEN: Barbara Starr at the Pentagon for us this morning. Barbara, thanks.

Bill?

HEMMER: Political talk now amid bad news from Iraq and tough questions for that 9/11 Commission. And even after widely publicized books, painting the White House in less than glowing colors, new poll numbers show the president's standing against Senator John Kerry has improved.

CNN senior analyst, Jeff Greenfield, here to sort it out for us.

Good morning to you.

JEFF GREENFIELD, CNN SENIOR ANALYST: How are you doing?

HEMMER: How big was the jump? I'm doing all right -- thanks.

GREENFIELD: Well, if you take a look at two national polls, you see slightly different stories. The CNN-USA Today-Gallup poll shows a move from a four to a six-point lead. That is statistically insignificant.

The ABC News-Washington Poll tells a little more dramatic story. What was a four-point Kerry lead has become a five-point Bush lead in a month. There is some talk that all the focus on Iraq and 9/11, even if it raised questions about the Bush performance, might have helped him, because anything that shifts the focus to terrorism and international matters supposedly helps the president because it goes to his strength. And the numbers inside these polls do show that Bush gets much higher marks in these areas than Kerry.

But also note something else, Bill. Bush's approval ratings on Iraq in general are down. What matters here apparently is Kerry's higher negatives. And also, it's not exactly headline news that if you spend $55 million in ads in a month and a half, you'll make a difference. And they have. Majorities now say Kerry doesn't say what he means but rather says what he thinks people want to hear.

HEMMER: I heard a little bit of that on Sunday morning about the $55 million in terms of the attack ads. On the issue of Iraq and the issue of 9/11 you just mentioned there, some are suggesting now, even though there are critical questions asked about the performance of the White House perhaps they even helped elevate his standing because the focus went back to...

GREENFIELD: And that's what I mentioned. If you look at the state polls, you'll see how this plays.

We all learned in 2000 that you win the White House by winning states. And the so-called battleground states very close for either Bush or Gore four years ago. And where this election will be decided, those states have some unhappy news for Kerry.

Let's look at Pennsylvania. This is a new poll that shows Bush leading Kerry by four points. A month ago, it was a virtual tie. You throw in Nader, it's six points.

But now look at this: Bush has got this lead even with numbers that show him with a 47, 49 negative overall job approval rating. And by 40 to 19 percent, Pennsylvanians say that Bush's economic policies have hurt the state. What is going on here?

Kerry has 24 to 31 percent negative unfavorable. This is the state that Gore won narrowly. It is the number one target of Bush to take away from the Democrats. And if you look at other blue states, also some unsettling news if you're a Democrat.

Michigan, Gore won it close four years ago. It's 47-45 Kerry lead. That's a virtual dead heat.

Oregon, Gore won it narrowly. Bush has got a narrow lead. That's really a dead heat.

Wisconsin, Gore won it narrowly four years ago. Bush leads by four points.

And here is a real eyebrow raiser. In New Jersey, where Gore won big four years ago, it's a 48-47 race for Kerry. That's a dead heat.

And by contrast, if you look at the so-called red states, only Ohio and West Virginia, states that Bush won narrowly four years ago, show Kerry tied with Bush. And since I figured you might ask, Bush has a an eight-point lead over Kerry in a state you know very well, and that's Florida.

Cautionary words apply. Poll numbers are not always reliable.

Kerry has raised a ton of money. He raised actually more in the first quarter this year than Bush. So he will have money to go on the air with ads. But what this shows is that, in his effort to define himself, Kerry has his work cut out for him. HEMMER: Wow. And no matter what we say today, six-and-a-half months out, it still comes down to who votes on November 2nd. Voter turnout.

GREENFIELD: We're going to see so much money thrown into -- you're already seeing it. And to get out the vote operations, you're absolutely right.

HEMMER: On both sides.

GREENFIELD: You're going to get ground war and air war. And six-and-a-half months out there already fighting like it's two weeks till Election Day.

HEMMER: Well, didn't someone say -- I believe his name was Jeff Greenfield -- the "Seinfeld" election was in 2000, all about nothing, and this time it's all about everything.

GREENFIELD: This is in every way one of the more consequential elections I've ever seen, not the least of which is, if the Republicans win it, they are the permanent governing majority.

HEMMER: Thanks, Jeff. We'll talk again. Jeff Greenfield here.

In a moment, a grand jury indictment could clear the way for a trial in the case against Michael Jackson. More on that in a moment.

And a huge welcome home celebration. We'll take you to Texas in a moment. Back after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back. Good morning. Half past the hour here in New York as we continue.

The auto industry getting serious about the hybrid cars. Sixty miles a gallon, that's the sales pitch in some cases. Is that true, and how safe are they? And why are consumers not buying them up more? Get to that in a moment here.

It's Earth Day. In a few moments we'll hear.

O'BRIEN: Also this morning, can P. Diddy act? He's the newest star on Broadway in one of the classics of American theater. "90- Second Pop" team handling this and many, many, many other topics this morning.

HEMMER: That's right. He has said that it's the most difficult thing he has ever done in terms of entertaining.

O'BRIEN: Well, the last person who had that role was Sidney Poitier. So, yes, I think that would be true.

HEMMER: Good luck.

Top stories here at the half-hour. A preliminary hearing may not be necessary in the Michael Jackson matter. A Santa Barbara grand jury indicted the singer yesterday. Specifics not known, but it's believed they are similar to the child molestation and child endangerment charges that Jackson already faces. In a statement, his attorneys say they are confident the singer will be fully exonerated.

About 50,000 expected to celebrate today at the largest Army post in the U.S. Hundreds of soldiers from Ft. Hood, Texas, returned from a year-long mission in Iraq yesterday. More troops, in fact, come home today.

They're being greeted by a star-studded list for the task force Iron Horse. It includes Randy Travis, Jessica Simpson, cheerleaders from the Patriots and Dallas Cowboys and, get this, 30,000 donated barbecue sandwiches in the state of Texas.

The U.S. is creating a policy in Iraq to rehire fired military officials and former members of Saddam's Ba'ath Party. Top U.S. administrator Paul Bremer, in Iraq, telling The Washington Post the strategy is designed to entice the powerful Sunni minority back into the political fold and weakened insurgencies in the Sunni Triangle. The proposal expected to be finished this week.

Federal officials in Illinois today trying to determine if parts of it qualify for federal relief money. A series of tornadoes striking late on Tuesday in Utica, 90 miles southwest of Chicago. Crews recovered more bodies yesterday. The death toll there is eight in Utica.

The governor issued a state disaster declaration as well. Cleaning up the pieces and not a good sight, as you spoke earlier today with one there.

O'BRIEN: No question. It's a big job ahead for those folks. And then you have to do it, of course, when they're emotional as well. It has to be very tough.

(WEATHER REPORT)

O'BRIEN: The U.N. has agreed to an independent investigation into allegations of corruption and kickbacks in its Oil for Food Program for Iraq. Former Federal Reserve chairman, Paul Volcker, will oversee a team of investigators.

Senior U.N. correspondent Richard Roth live for us this morning with the very latest from there.

Good morning to you, Richard.

RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Good morning, Soledad.

If there is something bad in the U.N., then they'll have to clean it up. That's what Paul Volcker said. But first, he has to lead this probe into the U.N.'s complex Oil for Food Program.

(BEGIN VIDEOTAPE)

ROTH (voice-over): As U.S. Federal Reserve Board chairman, Paul Volcker, could move markets and shake up governments...

PAUL VOLCKER, OIL FOR FOOD INVESTIGATIVE PANEL: I'm not the CIA, I'm not an official agency of any government. I don't have the police powers that come naturally to a government.

ROTH: After a closed-door debate, the Security Council voted to approve Volcker's panel. Volcker will not have subpoena power, counting on cooperation from the people he says with authority. But some of those very same countries may want to hide involvement by their diplomats or companies.

JOHN FAWCETT, PRIVATE LEGAL INVESTIGATOR: We're talking about over a hundred countries involved in corruption with Iraq, with Saddam Hussein's Iraq. That embarrasses a lot of people.

KOFI ANNAN, SECRETARY-GENERAL, UNITED NATIONS: Obviously, these serious allegations which we take seriously, and this is why we've put together a very serious group to investigate it.

ROTH: Annan's former coordinator for the Oil for Food Program will no doubt be asked questions. Benon Sevan's name turned up in an Iraqi newspaper list of people on the take. He has consistently denied any misconduct at the Oil for Food Program.

BENON SEVAN, FMR. DIRECTOR, OIL FOR FOOD PROGRAM: Nobody has been able to point a finger about any corruption with all that money involved.

ROTH: Another congressional hearing heard an Iraqi government adviser condemn the U.N. for allowing the scam to happen.

UNIDENTIFIED MALE: The very fact that Saddam Hussein, the U.N., and certain members of the Security Council could conceal such a scam from the world should send shivers down every spine in this room.

(END VIDEOTAPE)

ROTH: This is all not really a shock, Soledad, to members of the U.N., especially the Security Council. U.S. and Britain in a special committee examine all business contracts to Iraq between them and many companies. It's just a question of how much did they really want to look in order to keep the sanctions in place before the war.

Back to you.

O'BRIEN: All right. Richard Roth for us this morning. Richard, thanks.

Well, it's time now for "90-Second Pop." Today's topics: P. Diddy's Broadway, trumping the Donald, and new weekend movies.

Here to discuss, our panel, humorist Andy Borowitz. He is the author of "Governor Arnold." Also, New York Magazine contributing editor, Sarah Bernard. And B. J. Sigesmund, staff editor for US Weekly.

Hello, hello, hello. Where do you want to begin? Let's start with Donald.

ANDY BOROWITZ, HUMORIST: Donald.

O'BRIEN: Well, you know, he's done it successfully. Re-upped, new contract. A lot of dough.

BOROWITZ: Right.

O'BRIEN: All of these other billionaires suddenly jumping into the pot. Mark Cuban...

BOROWITZ: Mark Cuban...

O'BRIEN: and Richard Branson.

BOROWITZ: Yes.

O'BRIEN: Do people want to see billionaires on TV, do you think? Or do you think Trump has a special thing?

BOROWITZ: I don't know if they're going to want to see these guys. Every billionaire wants to be on TV now. And it's funny. I think, how long before Bill Gates shows up on "American Idol" singing "She Blinded Me With Science?" It's a matter of time. That's what I want to see.

O'BRIEN: I'm sorry.

BOROWITZ: No, no, no. I have nothing of value...

(CROSSTALK)

SARAH BERNARD, BEW YORK MAGAZINE: Well, I was going to say, what is so interesting about this is that Mark Cuban on his Web log yesterday had an open letter to Trump because...

O'BRIEN: They hate each other.

BERNARD: They hate each other because Trump had accused him of, you know, kind of imitating his show, which, hello, of course he is.

O'BRIEN: Duh!

BERNARD: It was exactly the same, basically.

BOROWITZ: Who do you root before between Mark Cuban and Donald Trump? That is kind of like when the Riddler and the Joker...

B.J. SIGESMUND, US WEEKLY: But don't forget, it wasn't just Donald Trump that made "The Apprentice." It was Mark Burnett, the producer of "Survivor," who brought...

(CROSSTALK) O'BRIEN: But you don't think that Mark Cuban and Richard Branson...

SIGESMUND: Well, you know, they're both very charismatic and eccentric guys, but it's going to take the right producer to make these shows work.

O'BRIEN: What's with P. Diddy? He's making his Broadway debut. I want to tell you, I like P. Diddy. I'm a huge P. Diddy...

BERNARD: You want to see it, right?

O'BRIEN: Yes. I'd go see it.

BERNARD: I think a lot of people feel the same way. Well, so now he's hip-hop mogul, fashion designer...

O'BRIEN: Marathoner.

BERNARD: He just signed a deal with (UNINTELLIGIBLE) this week -- exactly. And now he's a Broadway star. This is the first time the play "Raisin in the Sun" has been back to Broadway since 1959. I can't believe it. And Sidney Poitier was the person who originated this role. I mean, could you be more intimidated? I can't believe it.

O'BRIEN: Sidney Poitier, on to P. Diddy.

BOROWITZ: I think it's a really good choice. He had originally been talking about doing a revival of "Fiddler on the Roof." And I think that...

(CROSSTALK)

SIGESMUND: You've got to admire P. Diddy's ego, though...

BERNARD: I'm telling you.

SIGESMUND: ... to be able to think that he can follow Sidney Poitier's footsteps and do the show. And he's going to do it all the way through July 15. So even if the reviews are terrible and people hate him in this, is he committed all the way through.

BOROWITZ: Yes. If he's bad, he'll just change his name again.

SIGESMUND: I think he used Sean Combs when (UNINTELLIGIBLE).

O'BRIEN: I can't keep it all straight. Is he any good?

BERNARD: Well, the reviews are not bad. And I have to say that what's interesting about him now, the fact that he's doing a marathon, he does not need to do this, basically, for fame. He doesn't need anymore...

O'BRIEN: It's a challenge.

BERNARD: He doesn't need any more money. And he's just doing this because it's a fantasy.

O'BRIEN: I want to tell you...

SIGESMUND: You're there.

O'BRIEN: No. I think it's bigger than that. I like P. Diddy. I think he always stretches the boundaries and moves on to the next thing.

BERNARD: He does. I mean, it's putting yourself out there to have everybody kind of watch you...

O'BRIEN: You go, P. Diddy. I'm going to be in the front row every night cheering you on even if you're not very good. We'll wait and see.

BERNARD: No, I think he's not bad.

O'BRIEN: Oh good. Well, we'll wait and see.

Let's talk movies. "Thirteen Going on Thirty," this looks very funny. Jennifer Garner is in it.

SIGESMUND: Yes. I saw "Thirteen Going on Thirty," actually.

O'BRIEN: You liked it?

SIGESMUND: I was in Florida last weekend visiting my mother and we went to one of those sneak previews that they have on Saturday night.

O'BRIEN: Oh, you took you mom.

SIGESMUND: But the funniest part was there were so many little kids in the audience we felt like we were at a 12-year-old's birthday party. Like we were the oldest -- I was old by like 20 years.

BOROWITZ: Thanks for the warning, B.J.

SIGESMUND: This is, you know, Jennifer Garner. It's basically a female version of "Big." She's a 13-year-old who wishes she were 30 and could skip adolescence. And one morning she wakes up and she is 30. And she's this fabulous magazine editor in New York.

O'BRIEN: But mean and nasty, because she hung out with the wrong girls in junior high sool school.

SIGESMUND: Right. It turns out she has grown up to be like this horrible person. So she tries to change all that. And I don't want to spoil too much about the movie, but it' s pretty enjoyable.

BERNARD: I think what's interesting is that she apparently is really like that in person. We're so used to her being like the "Alias," you know, kicking butt girl. But apparently in real life she's much more like the giggly 13-ear-old. And that's why she said she wanted to do it. O'BRIEN: Oh, I see. As always, you guys, thanks so much.

Bill?

HEMMER: All right, Soledad. A check of "NEWSNIGHT" right now. Aaron Brown and a preview of what is coming up later tonight, 10:00 Eastern here on CNN. Here's Aaron.

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on "NEWSNIGHT," Bob Woodward's new book has driven much of the news this week and bedeviled a lot of people in high places. The book sheds new light on the how's and when's of the decision to go to war with Iraq. We will talk with Mr. Woodward tonight about the storm he has set off.

That, plus all the day's top news stories, morning papers, and the rest. That's "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern -- Bill.

HEMMER: Aaron, thanks. See you later tonight.

In a moment here, how to make a blinding impression at a business lunch. Flash the white card. What's the white card? Andy has that in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Checking the action now on Wall Street, plus the credit card with top snob appeal. And Amazon's latest venture. Back to Andy, "Minding Your Business."

Good morning to you. First the markets. What do you have inflation concerns out there?

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Yes, we do.

HEMMER: Interest rates? Everybody is concerned, huh?

SERWER: We do. We have a little incipient inflation out there perhaps.

Wholesale prices are up; people watching that. But markets shrugging it off. Dow is up 11 points. Earnings are too good, outweighing it. Let's talk about that very quickly.

e-Bay coming out with gangbuster numbers. That stock is up almost $3 today. Starbucks, boy, that coffee machine just keeps on ticking. And that stock is up as well.

Let's talk about this new credit card, Bill, though. It's called Stratus, rhymes with status, I guess. A new visa card with a $1,500 annual fee. Why? Why would you do that?

Well, here are the perks. Here's what you get: the first thing is the fee. You get -- with points, you get a private jet. So you get 200,000 points, you get to fly around on a Gulf Stream or a citation. How about that? Lifestyle management consultants, that's like if you need a florist, they'll talk to you.

HEMMER: Huh?

SERWER: There's some insurance there you can see. And the ultimate gift bag, supposedly even better than the Oscars.

A couple of other things. You know, there's a lot of these high end cards. AMEX has the black card, which is $1,000. It's like card inflation, because they came out with a platinum card. There are now a hundred million of those. They came out with a titanium card, there's now a student titanium card. How exclusive could that be?

So it's just one of these things where...

O'BRIEN: Pay their bills.

SERWER: ... trying to capture the higher end of the market. And people are willing to pony up that kind of money.

HEMMER: You know, we were thinking about getting some jewelry for Soledad. Do you got a good place where we could go?

O'BRIEN: Oh, that's sweet.

SERWER: I think I know a place you might want to check out this morning. If you go to their home page, amazon.com getting into the jewelry business. And it's right there; you can't miss it. If you try to buy a book you'll stumble right into this thing this morning if you go there.

Interesting idea. The average markup at a jewelry store about 45 percent. OK? Amazon saying it's going to be less than 20. They've got stuff like -- they a $93,000 platinum and diamond necklace on there.

O'BRIEN: That will do.

SERWER: It will be interesting to see if they can sell that online.

O'BRIEN: Thank you. You guys! I love you guys! I love you guys!

HEMMER: I bet you do. Hey, by the way, great looking tie today.

SERWER: Well thanks. I think Jack likes it a lot, too.

O'BRIEN: I love his ties.

SERWER: Two out of three at least here, huh?

O'BRIEN: Fantastic.

SERWER: No comment over there. CAFFERTY: You look like a salmon. Pink shirt, pink tie.

O'BRIEN: It's very handsome.

CAFFERTY: Well, I shouldn't being. This is no day at the beach I'm wearing either.

HEMMER: Glass house.

CAFFERTY: Yes.

O'BRIEN: Coming up on CNN this morning, a Texas-size welcome home today for the war-hardened 4th ID. A preview of the festivities coming up in the next hour with Daryn Kagan. That's on "CNN LIVE TODAY."

AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

HEMMER: Hey, we've got to run. Thanks for being with us today. Back by Jack demand tomorrow, Phil Mickelson is back on our program.

CAFFERTY: On the hairy edge of existence.

(CROSSTALK)

HEMMER: We've got to run. Here's Daryn Kagan at the CNN Center.


Aired April 22, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. What's next for Michael Jackson? A grand jury indicting him in a child molestation investigation.
The U.S. nowhere near finished paying for Iraq. The battle in Washington over how much more money is needed and how soon.

Spring weather still hitting hard across the country. A giant hailstorm is more on the way.

And the cruise ship that has it all and then some. The Queen Mary II now part of the Manhattan skyline on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

O'BRIEN: Good morning. Welcome back, everybody.

Other stories that we're following this morning, the judge that's overseeing the Kobe Bryant case has made a huge decision about bringing the medical history of the alleged victim into the trial. Jeff Toobin is going to join us in just a few moments to talk about just how big a setback this might be for the defense.

HEMMER: Also, on this Earth Day today, hybrid car. Sales are said to be on the rise, but how much? And are hybrids the safety factor that many consumers have looked to before? We'll get to that issue this morning. It is Earth Day here on Earth.

O'BRIEN: Hi, Jack.

JACK CAFFERTY, CNN ANCHOR: This is Earth Day?

HEMMER: Yes.

CAFFERTY: It snuck up on me again this year.

HEMMER: Yesterday was Professional Assistant's Day.

CAFFERTY: Yes?

HEMMER: Yes. It used to be Secretary's Day. Don't go there.

CAFFERTY: Well, we can't say Secretary's Day anymore.

HEMMER: I said don't go there. CAFFERTY: First day is Secretary's Day. It will be nice when we run out of days.

How much is too much information about the presidential candidates? Got your medical records, military records, tax records, yadda, yadda, yadda. Enough, not enough, you want to know more, less? AM@CNN.com. I'm just hanging on tenor (ph) hooks here.

HEMMER: Spoken with enthusiasm. A man who surely cares.

CAFFERTY: What time does the bus to Queens come by here?

HEMMER: Fifty-eight minutes.

O'BRIEN: Don't make me laugh. It hurts my stomach.

HEMMER: Let's get to our top stories again starting our third hour this morning.

There's a U.S. general in Fallujah warning the insurgents to disarm or face the consequences. U.S. Marines had agreed to stop the operations if insurgents turned over the weapons. This video from yesterday with the U.S. Marines doing action there. Military sources say they are not pleased with the turnover. They say guerrillas have days and not weeks to lay down their arms.

Saudi officials blaming al Qaeda for a car bombing in Riyadh. Four people were killed, more than 140 people injured yesterday. Officials recently diffused five other bombings and say simultaneous bombings are an al Qaeda trademark. There's a group sympathetic to al Qaeda claiming responsibility for yesterday. The Saudi ambassador, Prince Bandar bin Sultan, says his country is now in, "a total war against terrorists."

In this country, federal officials in Illinois today trying to determine if parts of it qualify for federal relief money. A series of tornadoes struck the state Tuesday night in Utica, southwest of Chicago by 90 miles. Crews recovered more bodies yesterday, bringing the death toll there to eight. The governor yesterday issued a state disaster declaration there.

Also, some wild weather in Oklahoma. Thunderstorms dumping baseball-sized hail and heavy rain in parts of the state, contributing to go a car crash that killed one woman. Another woman was rescued after being trapped in her car by hail and flood waters.

You can see the videotape there and what the folks were dealing there. There's another piece of tape here maybe we'll get to a bit later with Chad that literally shows the sleet and hail piling up in piles, coming off the roofs up there.

O'BRIEN: What a mess, absolutely.

(WEATHER REPORT)

O'BRIEN: Well, Michael Jackson has been indicted by a California grand jury. The charges are confidential at this point, but the grand jury was investigating the child molestation case against Jackson.

CNN's Miguel Marquez live for us in Santa Barbara, California, this morning.

Hey, Miguel. Good morning, again.

MIGUEL MARQUEZ, CNN CORRESPONDENT: (AUDIO GAP) those proceedings were sealed. WE do know some stuff about what happened there, the 13 days the grand jury heard and considered testimony against Michael Jackson on molestation charges. In grand jury proceedings, 12 of 19 grand jurors must agree with a strong suspicion of guilt -- that's a legal standard -- that they believe Mr. Jackson was guilty of that individual charge. They vote on each and every charge.

Back in January, Jackson was charged with seven counts of lewd and lascivious acts against a child under 14 and two counts of giving a child an intoxicating agent. On February 2003 -- all of this stems from then -- he was believed -- the allegations are that he molested a child at his Neverland Ranch. A search there was conducted back in November 2003.

There have been 18 searches, dozens of computers. Hundreds of videos, DVDs and mini DVDs have been taken from Mr. Jackson's Neverland Ranch and other locations.

Mr. Jackson's lawyers hopping right on this. Cleared a statement with the court system here in Santa Barbara before the charges were even announced, the new charges. They say that they are patently false and that they remind everybody that these are allegations. Mr. Jackson will have to re-appear in court on April 30 to be arraigned on these charges, and his lawyers say he will plead not guilty -- Soledad.

O'BRIEN: No surprise there. Miguel Marquez for us before we get to Bill Dworin.

In fact, Bill Dworin is a retired LAPD detective. He was the lead investigator in the 1993 child molestation case against Michael Jackson. He joins us from LA this morning with his reaction to the Jackson indictment.

You just heard what Miguel Marquez had to say, updating us on the case there. We're still unclear of the charges exactly. But if Michael Jackson is indicted, do you think that means that there is enough evidence that it will just go to trial and not necessarily much more than that, right? That's fair to say?

BILL DWORIN, RETIRED LAPD DETECTIVE: Yes, that's very fair to say. We don't know what the prosecution has in the way of physical evidence, as well as what the testimony was in the grand jury hearing. So we're still at a loss to know what exactly has occurred.

O'BRIEN: There are two things you have said in the past, and I want to go through them individually. First, you said you're surprised that there were not more charges filed against Michael Jackson. And should I read into that that you think that this is potentially a weak case?

DWORIN: No. Again, we don't know.

We know that in a situation where a suspect, a pedophile seduces a child, the activity is a progression from a touching to a fondling to whatever else has occurred. In this case, we don't know how long this abuse has been occurring. The dates indicate it's been a short amount of time, so it's possible that no further abuse occurred during this time period.

O'BRIEN: And we'll say alleged abuse because obviously...

DWORIN: Yes, alleged abuse.

O'BRIEN: ... this is going to trial, but not necessarily a conviction there. The second thing that you have said is that the timeline in this case is unusual. What are you talking about?

DWORIN: Well, it appears from the initial complaint that was issued that the abuse occurred after the show that was showing Jackson with the boy, that the defense attorney general was hired. The abuse occurred after this time. So I'm concerned about the time line. Again, we don't know what was presented to the grand jury, and that timeline, may, in fact, be different.

O'BRIEN: To what degree do you think that the case you worked on back in 1993 is going to play a large role in the current case that is being worked on today?

DWORIN: It would depend upon if the alleged victim from 1993 testifies in the trial, the upcoming trial. If he does, it will show a pattern of activity, things that occurred in '93 continues to occur today in 2003.

O'BRIEN: Do you think all of the media attention -- and I have to imagine that the media attention is only going to go more and greater as the this heads into a trial -- do you think it gives Michael Jackson an advantage, or do you think it gives prosecutors an advantage, or do you think that it's just a wash?

DWORIN: Well, because of the grand jury, we don't know. The public doesn't know what was presented, what the physical evidence is. And I think this will help allow the Santa Barbara district attorney to select a jury pool, a jury from a jury pool who is not corrupted by the media attention.

O'BRIEN: Bill Dworin, a retired LAPD detective, joining us this morning. Thanks for your time and some of your insight. Appreciate it -- Bill.

DWORIN: Thank you.

HEMMER: Legal implications, Soledad. Our senior legal analyst, Jeffrey Toobin, now checks in here on AMERICAN MORNING.

Good morning to you. JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Good morning.

HEMMER: Earlier today, you said it's virtually the same case as before. What do you mean by that?

TOOBIN: Well, that's what it appears. We don't know. But based on the witnesses who testified before the grand jury, it looks like that the prosecutor's attempt to find additional victims, to find additional incidents, was not successful, and that this case is based solely on the allegations made by the former cancer patient around the time of the documentary in February of 2003.

HEMMER: Back to you initial point, though, what we don't know at this point is how much is there or is not there.

TOOBIN: A lot. I mean, think about what we don't know. There were those very celebrated notorious raids on Neverland, where many, many officers, dozens of officers went in there and looked for evidence against Michael Jackson around the time he was arrested.

What did they find? We don't know. Maybe they found incriminating evidence, maybe they found nothing.

I mean, that's the kind of thing that will come out of the trial. But the significant thing is that, remember, District Attorney Sneddon said please come forward if you've been abused by Michael Jackson. It appears, based on what we've seen so far, that no one has.

HEMMER: A lot of legal analysts have said Michael Jackson doesn't have counsel around him to prevent him from doing things like he did on top of that bus back -- I think it was January. You were 20 feet away from him at the time.

TOOBIN: I was. It was really one of the most surreal experiences of my life standing there, because you expect certain things to happen in a courtroom and in these procedures. I've covered these high-profile cases before, and one of the terms I always object to that people use is "media circus" and "circus" because usually they're not a circus.

I remember sitting there thinking this is a circus. This was so bizarre. Mark Geragos and Ben Brafman were at about 50 feet away from Michael Jackson. They clearly had no idea he was going to do this.

HEMMER: What was their reaction?

TOOBIN: Well, they were just...

HEMMER: And shaking their mouths.

TOOBIN: ... in shock. You can be sure when Michael Jackson returns to court next Friday to be arraigned this will not be repeated, because these are serious lawyers. And they're not going to allow this to happen again.

HEMMER: Quickly, away from Michael Jackson, Kobe Bryant. You have said earlier today that you're not quite sure it is that significant of a setback for the defense.

TOOBIN: Certainly it's a setback. They would like to have had these hospital records. But it's worth pointing out that this does not mean when this accuser testifies on the witness stand she will be barred from having to discuss her mental health history.

They can still ask about that. And the big issue, the discussion of her sexual history, whether the defense can point out -- can claim that she had sex with other people around the time of the incident with Kobe Bryant, that issue was not decided at all by the decision yesterday. That is a more important decision that's coming up in the next few weeks.

HEMMER: Next week. Monday...

TOOBIN: The hearing next week.

HEMMER: All right. Thanks, Jeff. Jeff Toobin -- Soledad.

O'BRIEN: Still to come this morning, the rising cost of war in Iraq. Just how much money is needed? And how much has already been spent? We're going to take you live to the Pentagon in just a moment.

HEMMER: Also, on the campaign front, despite controversial books, 9/11 testimony, and that ongoing war, President Bush is still strong in the poes. In fact, he came up this past week. Jeff Greenfield breaks down the numbers in a moment.

O'BRIEN: And the cars of the future, well, they're here already. But just who is buying those half-gas, half-electric creations? We'll talk about the newest hybrid cars coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: With the recent surge of violence in Iraq, the cost of the Americans lives has taken a tragic turn. And now there are new questions about what the continuing effort there is going to cost in dollars, and cents as well. For details on that and the latest on the military situation in Iraq, let's go right to the Pentagon and our correspondent, Barbara Starr, who's there.

Hey, Barbara. Good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Soledad.

A political and a military question now facing the White House. They are going to have to ask Congress for more money, perhaps $50 billion to $60 billion to fight the war in Iraq. But will they ask Congress for the money before or after the November election?

Yesterday's hearings on Capitol Hill made it very clear the price tag is going up. One reason, 20,000 extra troops, of course, staying in Iraq for about 90 days to deal with the insurgency. A lot of questions from Capitol Hill.

(BEGIN VIDEO CLIP)

GEN. RICHARD MYERS, CHAIRMAN, JOINT CHIEFS OF STAFF: Additional time in Iraq is going to cost us more money. We estimate right now -- we are working those estimates right now, let me just say that.

(END VIDEO CLIP)

STARR: General Myers going on to say the extra price tag will be at least $700 million to keep those 20,000 troops there for 90 days. The war is now costing about $5 billion a month. And operationally on the ground today in Iraq, growing concern, Soledad, about the situation in Fallujah. More fighting overnight.

We are told by Pentagon officials heavy fighting in the northwest section of the city. So heavy that they had to stop humanitarian assistance, convoys from coming into the city. The top general in the area says that weapons turnover is not going very well. Now week three of the insurgency. A lot of questions about how long this very tenuous cease-fire status quo may go on -- Soledad.

O'BRIEN: Barbara Starr at the Pentagon for us this morning. Barbara, thanks.

Bill?

HEMMER: Political talk now amid bad news from Iraq and tough questions for that 9/11 Commission. And even after widely publicized books, painting the White House in less than glowing colors, new poll numbers show the president's standing against Senator John Kerry has improved.

CNN senior analyst, Jeff Greenfield, here to sort it out for us.

Good morning to you.

JEFF GREENFIELD, CNN SENIOR ANALYST: How are you doing?

HEMMER: How big was the jump? I'm doing all right -- thanks.

GREENFIELD: Well, if you take a look at two national polls, you see slightly different stories. The CNN-USA Today-Gallup poll shows a move from a four to a six-point lead. That is statistically insignificant.

The ABC News-Washington Poll tells a little more dramatic story. What was a four-point Kerry lead has become a five-point Bush lead in a month. There is some talk that all the focus on Iraq and 9/11, even if it raised questions about the Bush performance, might have helped him, because anything that shifts the focus to terrorism and international matters supposedly helps the president because it goes to his strength. And the numbers inside these polls do show that Bush gets much higher marks in these areas than Kerry.

But also note something else, Bill. Bush's approval ratings on Iraq in general are down. What matters here apparently is Kerry's higher negatives. And also, it's not exactly headline news that if you spend $55 million in ads in a month and a half, you'll make a difference. And they have. Majorities now say Kerry doesn't say what he means but rather says what he thinks people want to hear.

HEMMER: I heard a little bit of that on Sunday morning about the $55 million in terms of the attack ads. On the issue of Iraq and the issue of 9/11 you just mentioned there, some are suggesting now, even though there are critical questions asked about the performance of the White House perhaps they even helped elevate his standing because the focus went back to...

GREENFIELD: And that's what I mentioned. If you look at the state polls, you'll see how this plays.

We all learned in 2000 that you win the White House by winning states. And the so-called battleground states very close for either Bush or Gore four years ago. And where this election will be decided, those states have some unhappy news for Kerry.

Let's look at Pennsylvania. This is a new poll that shows Bush leading Kerry by four points. A month ago, it was a virtual tie. You throw in Nader, it's six points.

But now look at this: Bush has got this lead even with numbers that show him with a 47, 49 negative overall job approval rating. And by 40 to 19 percent, Pennsylvanians say that Bush's economic policies have hurt the state. What is going on here?

Kerry has 24 to 31 percent negative unfavorable. This is the state that Gore won narrowly. It is the number one target of Bush to take away from the Democrats. And if you look at other blue states, also some unsettling news if you're a Democrat.

Michigan, Gore won it close four years ago. It's 47-45 Kerry lead. That's a virtual dead heat.

Oregon, Gore won it narrowly. Bush has got a narrow lead. That's really a dead heat.

Wisconsin, Gore won it narrowly four years ago. Bush leads by four points.

And here is a real eyebrow raiser. In New Jersey, where Gore won big four years ago, it's a 48-47 race for Kerry. That's a dead heat.

And by contrast, if you look at the so-called red states, only Ohio and West Virginia, states that Bush won narrowly four years ago, show Kerry tied with Bush. And since I figured you might ask, Bush has a an eight-point lead over Kerry in a state you know very well, and that's Florida.

Cautionary words apply. Poll numbers are not always reliable.

Kerry has raised a ton of money. He raised actually more in the first quarter this year than Bush. So he will have money to go on the air with ads. But what this shows is that, in his effort to define himself, Kerry has his work cut out for him. HEMMER: Wow. And no matter what we say today, six-and-a-half months out, it still comes down to who votes on November 2nd. Voter turnout.

GREENFIELD: We're going to see so much money thrown into -- you're already seeing it. And to get out the vote operations, you're absolutely right.

HEMMER: On both sides.

GREENFIELD: You're going to get ground war and air war. And six-and-a-half months out there already fighting like it's two weeks till Election Day.

HEMMER: Well, didn't someone say -- I believe his name was Jeff Greenfield -- the "Seinfeld" election was in 2000, all about nothing, and this time it's all about everything.

GREENFIELD: This is in every way one of the more consequential elections I've ever seen, not the least of which is, if the Republicans win it, they are the permanent governing majority.

HEMMER: Thanks, Jeff. We'll talk again. Jeff Greenfield here.

In a moment, a grand jury indictment could clear the way for a trial in the case against Michael Jackson. More on that in a moment.

And a huge welcome home celebration. We'll take you to Texas in a moment. Back after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back. Good morning. Half past the hour here in New York as we continue.

The auto industry getting serious about the hybrid cars. Sixty miles a gallon, that's the sales pitch in some cases. Is that true, and how safe are they? And why are consumers not buying them up more? Get to that in a moment here.

It's Earth Day. In a few moments we'll hear.

O'BRIEN: Also this morning, can P. Diddy act? He's the newest star on Broadway in one of the classics of American theater. "90- Second Pop" team handling this and many, many, many other topics this morning.

HEMMER: That's right. He has said that it's the most difficult thing he has ever done in terms of entertaining.

O'BRIEN: Well, the last person who had that role was Sidney Poitier. So, yes, I think that would be true.

HEMMER: Good luck.

Top stories here at the half-hour. A preliminary hearing may not be necessary in the Michael Jackson matter. A Santa Barbara grand jury indicted the singer yesterday. Specifics not known, but it's believed they are similar to the child molestation and child endangerment charges that Jackson already faces. In a statement, his attorneys say they are confident the singer will be fully exonerated.

About 50,000 expected to celebrate today at the largest Army post in the U.S. Hundreds of soldiers from Ft. Hood, Texas, returned from a year-long mission in Iraq yesterday. More troops, in fact, come home today.

They're being greeted by a star-studded list for the task force Iron Horse. It includes Randy Travis, Jessica Simpson, cheerleaders from the Patriots and Dallas Cowboys and, get this, 30,000 donated barbecue sandwiches in the state of Texas.

The U.S. is creating a policy in Iraq to rehire fired military officials and former members of Saddam's Ba'ath Party. Top U.S. administrator Paul Bremer, in Iraq, telling The Washington Post the strategy is designed to entice the powerful Sunni minority back into the political fold and weakened insurgencies in the Sunni Triangle. The proposal expected to be finished this week.

Federal officials in Illinois today trying to determine if parts of it qualify for federal relief money. A series of tornadoes striking late on Tuesday in Utica, 90 miles southwest of Chicago. Crews recovered more bodies yesterday. The death toll there is eight in Utica.

The governor issued a state disaster declaration as well. Cleaning up the pieces and not a good sight, as you spoke earlier today with one there.

O'BRIEN: No question. It's a big job ahead for those folks. And then you have to do it, of course, when they're emotional as well. It has to be very tough.

(WEATHER REPORT)

O'BRIEN: The U.N. has agreed to an independent investigation into allegations of corruption and kickbacks in its Oil for Food Program for Iraq. Former Federal Reserve chairman, Paul Volcker, will oversee a team of investigators.

Senior U.N. correspondent Richard Roth live for us this morning with the very latest from there.

Good morning to you, Richard.

RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Good morning, Soledad.

If there is something bad in the U.N., then they'll have to clean it up. That's what Paul Volcker said. But first, he has to lead this probe into the U.N.'s complex Oil for Food Program.

(BEGIN VIDEOTAPE)

ROTH (voice-over): As U.S. Federal Reserve Board chairman, Paul Volcker, could move markets and shake up governments...

PAUL VOLCKER, OIL FOR FOOD INVESTIGATIVE PANEL: I'm not the CIA, I'm not an official agency of any government. I don't have the police powers that come naturally to a government.

ROTH: After a closed-door debate, the Security Council voted to approve Volcker's panel. Volcker will not have subpoena power, counting on cooperation from the people he says with authority. But some of those very same countries may want to hide involvement by their diplomats or companies.

JOHN FAWCETT, PRIVATE LEGAL INVESTIGATOR: We're talking about over a hundred countries involved in corruption with Iraq, with Saddam Hussein's Iraq. That embarrasses a lot of people.

KOFI ANNAN, SECRETARY-GENERAL, UNITED NATIONS: Obviously, these serious allegations which we take seriously, and this is why we've put together a very serious group to investigate it.

ROTH: Annan's former coordinator for the Oil for Food Program will no doubt be asked questions. Benon Sevan's name turned up in an Iraqi newspaper list of people on the take. He has consistently denied any misconduct at the Oil for Food Program.

BENON SEVAN, FMR. DIRECTOR, OIL FOR FOOD PROGRAM: Nobody has been able to point a finger about any corruption with all that money involved.

ROTH: Another congressional hearing heard an Iraqi government adviser condemn the U.N. for allowing the scam to happen.

UNIDENTIFIED MALE: The very fact that Saddam Hussein, the U.N., and certain members of the Security Council could conceal such a scam from the world should send shivers down every spine in this room.

(END VIDEOTAPE)

ROTH: This is all not really a shock, Soledad, to members of the U.N., especially the Security Council. U.S. and Britain in a special committee examine all business contracts to Iraq between them and many companies. It's just a question of how much did they really want to look in order to keep the sanctions in place before the war.

Back to you.

O'BRIEN: All right. Richard Roth for us this morning. Richard, thanks.

Well, it's time now for "90-Second Pop." Today's topics: P. Diddy's Broadway, trumping the Donald, and new weekend movies.

Here to discuss, our panel, humorist Andy Borowitz. He is the author of "Governor Arnold." Also, New York Magazine contributing editor, Sarah Bernard. And B. J. Sigesmund, staff editor for US Weekly.

Hello, hello, hello. Where do you want to begin? Let's start with Donald.

ANDY BOROWITZ, HUMORIST: Donald.

O'BRIEN: Well, you know, he's done it successfully. Re-upped, new contract. A lot of dough.

BOROWITZ: Right.

O'BRIEN: All of these other billionaires suddenly jumping into the pot. Mark Cuban...

BOROWITZ: Mark Cuban...

O'BRIEN: and Richard Branson.

BOROWITZ: Yes.

O'BRIEN: Do people want to see billionaires on TV, do you think? Or do you think Trump has a special thing?

BOROWITZ: I don't know if they're going to want to see these guys. Every billionaire wants to be on TV now. And it's funny. I think, how long before Bill Gates shows up on "American Idol" singing "She Blinded Me With Science?" It's a matter of time. That's what I want to see.

O'BRIEN: I'm sorry.

BOROWITZ: No, no, no. I have nothing of value...

(CROSSTALK)

SARAH BERNARD, BEW YORK MAGAZINE: Well, I was going to say, what is so interesting about this is that Mark Cuban on his Web log yesterday had an open letter to Trump because...

O'BRIEN: They hate each other.

BERNARD: They hate each other because Trump had accused him of, you know, kind of imitating his show, which, hello, of course he is.

O'BRIEN: Duh!

BERNARD: It was exactly the same, basically.

BOROWITZ: Who do you root before between Mark Cuban and Donald Trump? That is kind of like when the Riddler and the Joker...

B.J. SIGESMUND, US WEEKLY: But don't forget, it wasn't just Donald Trump that made "The Apprentice." It was Mark Burnett, the producer of "Survivor," who brought...

(CROSSTALK) O'BRIEN: But you don't think that Mark Cuban and Richard Branson...

SIGESMUND: Well, you know, they're both very charismatic and eccentric guys, but it's going to take the right producer to make these shows work.

O'BRIEN: What's with P. Diddy? He's making his Broadway debut. I want to tell you, I like P. Diddy. I'm a huge P. Diddy...

BERNARD: You want to see it, right?

O'BRIEN: Yes. I'd go see it.

BERNARD: I think a lot of people feel the same way. Well, so now he's hip-hop mogul, fashion designer...

O'BRIEN: Marathoner.

BERNARD: He just signed a deal with (UNINTELLIGIBLE) this week -- exactly. And now he's a Broadway star. This is the first time the play "Raisin in the Sun" has been back to Broadway since 1959. I can't believe it. And Sidney Poitier was the person who originated this role. I mean, could you be more intimidated? I can't believe it.

O'BRIEN: Sidney Poitier, on to P. Diddy.

BOROWITZ: I think it's a really good choice. He had originally been talking about doing a revival of "Fiddler on the Roof." And I think that...

(CROSSTALK)

SIGESMUND: You've got to admire P. Diddy's ego, though...

BERNARD: I'm telling you.

SIGESMUND: ... to be able to think that he can follow Sidney Poitier's footsteps and do the show. And he's going to do it all the way through July 15. So even if the reviews are terrible and people hate him in this, is he committed all the way through.

BOROWITZ: Yes. If he's bad, he'll just change his name again.

SIGESMUND: I think he used Sean Combs when (UNINTELLIGIBLE).

O'BRIEN: I can't keep it all straight. Is he any good?

BERNARD: Well, the reviews are not bad. And I have to say that what's interesting about him now, the fact that he's doing a marathon, he does not need to do this, basically, for fame. He doesn't need anymore...

O'BRIEN: It's a challenge.

BERNARD: He doesn't need any more money. And he's just doing this because it's a fantasy.

O'BRIEN: I want to tell you...

SIGESMUND: You're there.

O'BRIEN: No. I think it's bigger than that. I like P. Diddy. I think he always stretches the boundaries and moves on to the next thing.

BERNARD: He does. I mean, it's putting yourself out there to have everybody kind of watch you...

O'BRIEN: You go, P. Diddy. I'm going to be in the front row every night cheering you on even if you're not very good. We'll wait and see.

BERNARD: No, I think he's not bad.

O'BRIEN: Oh good. Well, we'll wait and see.

Let's talk movies. "Thirteen Going on Thirty," this looks very funny. Jennifer Garner is in it.

SIGESMUND: Yes. I saw "Thirteen Going on Thirty," actually.

O'BRIEN: You liked it?

SIGESMUND: I was in Florida last weekend visiting my mother and we went to one of those sneak previews that they have on Saturday night.

O'BRIEN: Oh, you took you mom.

SIGESMUND: But the funniest part was there were so many little kids in the audience we felt like we were at a 12-year-old's birthday party. Like we were the oldest -- I was old by like 20 years.

BOROWITZ: Thanks for the warning, B.J.

SIGESMUND: This is, you know, Jennifer Garner. It's basically a female version of "Big." She's a 13-year-old who wishes she were 30 and could skip adolescence. And one morning she wakes up and she is 30. And she's this fabulous magazine editor in New York.

O'BRIEN: But mean and nasty, because she hung out with the wrong girls in junior high sool school.

SIGESMUND: Right. It turns out she has grown up to be like this horrible person. So she tries to change all that. And I don't want to spoil too much about the movie, but it' s pretty enjoyable.

BERNARD: I think what's interesting is that she apparently is really like that in person. We're so used to her being like the "Alias," you know, kicking butt girl. But apparently in real life she's much more like the giggly 13-ear-old. And that's why she said she wanted to do it. O'BRIEN: Oh, I see. As always, you guys, thanks so much.

Bill?

HEMMER: All right, Soledad. A check of "NEWSNIGHT" right now. Aaron Brown and a preview of what is coming up later tonight, 10:00 Eastern here on CNN. Here's Aaron.

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on "NEWSNIGHT," Bob Woodward's new book has driven much of the news this week and bedeviled a lot of people in high places. The book sheds new light on the how's and when's of the decision to go to war with Iraq. We will talk with Mr. Woodward tonight about the storm he has set off.

That, plus all the day's top news stories, morning papers, and the rest. That's "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern -- Bill.

HEMMER: Aaron, thanks. See you later tonight.

In a moment here, how to make a blinding impression at a business lunch. Flash the white card. What's the white card? Andy has that in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Checking the action now on Wall Street, plus the credit card with top snob appeal. And Amazon's latest venture. Back to Andy, "Minding Your Business."

Good morning to you. First the markets. What do you have inflation concerns out there?

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Yes, we do.

HEMMER: Interest rates? Everybody is concerned, huh?

SERWER: We do. We have a little incipient inflation out there perhaps.

Wholesale prices are up; people watching that. But markets shrugging it off. Dow is up 11 points. Earnings are too good, outweighing it. Let's talk about that very quickly.

e-Bay coming out with gangbuster numbers. That stock is up almost $3 today. Starbucks, boy, that coffee machine just keeps on ticking. And that stock is up as well.

Let's talk about this new credit card, Bill, though. It's called Stratus, rhymes with status, I guess. A new visa card with a $1,500 annual fee. Why? Why would you do that?

Well, here are the perks. Here's what you get: the first thing is the fee. You get -- with points, you get a private jet. So you get 200,000 points, you get to fly around on a Gulf Stream or a citation. How about that? Lifestyle management consultants, that's like if you need a florist, they'll talk to you.

HEMMER: Huh?

SERWER: There's some insurance there you can see. And the ultimate gift bag, supposedly even better than the Oscars.

A couple of other things. You know, there's a lot of these high end cards. AMEX has the black card, which is $1,000. It's like card inflation, because they came out with a platinum card. There are now a hundred million of those. They came out with a titanium card, there's now a student titanium card. How exclusive could that be?

So it's just one of these things where...

O'BRIEN: Pay their bills.

SERWER: ... trying to capture the higher end of the market. And people are willing to pony up that kind of money.

HEMMER: You know, we were thinking about getting some jewelry for Soledad. Do you got a good place where we could go?

O'BRIEN: Oh, that's sweet.

SERWER: I think I know a place you might want to check out this morning. If you go to their home page, amazon.com getting into the jewelry business. And it's right there; you can't miss it. If you try to buy a book you'll stumble right into this thing this morning if you go there.

Interesting idea. The average markup at a jewelry store about 45 percent. OK? Amazon saying it's going to be less than 20. They've got stuff like -- they a $93,000 platinum and diamond necklace on there.

O'BRIEN: That will do.

SERWER: It will be interesting to see if they can sell that online.

O'BRIEN: Thank you. You guys! I love you guys! I love you guys!

HEMMER: I bet you do. Hey, by the way, great looking tie today.

SERWER: Well thanks. I think Jack likes it a lot, too.

O'BRIEN: I love his ties.

SERWER: Two out of three at least here, huh?

O'BRIEN: Fantastic.

SERWER: No comment over there. CAFFERTY: You look like a salmon. Pink shirt, pink tie.

O'BRIEN: It's very handsome.

CAFFERTY: Well, I shouldn't being. This is no day at the beach I'm wearing either.

HEMMER: Glass house.

CAFFERTY: Yes.

O'BRIEN: Coming up on CNN this morning, a Texas-size welcome home today for the war-hardened 4th ID. A preview of the festivities coming up in the next hour with Daryn Kagan. That's on "CNN LIVE TODAY."

AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

HEMMER: Hey, we've got to run. Thanks for being with us today. Back by Jack demand tomorrow, Phil Mickelson is back on our program.

CAFFERTY: On the hairy edge of existence.

(CROSSTALK)

HEMMER: We've got to run. Here's Daryn Kagan at the CNN Center.