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CNN Live Today

Fallujah Firefight; Kobe Bryant Due in Court Today

Aired April 26, 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, HOST: All right. We'll get things started on a Monday morning. Good morning to all of you. From CNN headquarters in Atlanta, I'm Daryn Kagan.
The latest developments at this hour: an uneasy truce in the Iraqi city of Fallujah is interrupted by an intense firefight. It went on for three hours between U.S. Marines and insurgents gunmen; when it was over, at least 10 U.S. Marines had been wounded, four of them seriously, no reports on enemy casualties.

Kobe Bryant is due in court today in Eagle, Colorado, Day 1 of a three-day hearing in his sexual assault case. Decisions still to come, include a date for the trial and ground rules for testimony on his accuser's sexual activities.

Cosmetics queen Estee Lauder is dead at the age of 97. The founder of 18 Estee Lauder companies died at her home in Manhattan. Lauder was a pioneer in cosmetics marketing in the 1940s, handing out free samples and letting shoppers test her creams in department stores.

The Senate debates taxes on Internet connections and whether to permanently ban them. A temporary ban expired six months ago. The Congressional Budget Office says the ban on taxes could cost state and local governments billions of dollars.

In Iraq, clouds of smoke and a critical deadline are hanging over Fallujah. That is where the fighting has intensified today. A raging battle there left 10 U.S. Marines injured and concern reverberating to Baghdad where yet another explosion has erupted.

Our Jim Clancy is in the Iraqi capital; he has more on the latest -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Let's begin in Baghdad. It appears now this was no roadside bomb. But instead, U.S. soldiers went to a location in northwest Baghdad in an area where there are several chemical companies. They were there to look into reports that one of them had suspicious chemicals. In the course of an investigation, their inspection of the site, there was an explosion. That explosion killed two U.S. personnel. It wounded five others. There were then eight Iraqi civilians who were also hurt in the blast.

This was a scene that torched about four Humvees that were parked out in front of the building. That building, the front of it was completely demolished. Neighboring structures also heavily damaged by the force of the explosion that sent a mushroom cloud rising over that section of Baghdad.

Now, as the Humvees burned, a lot of young people came out in the street jumping and shouting anti-U.S. slogans from their positions. Even though this would seem to be anti-American sentiment, coalition spokesmen, just minutes ago, saying it's not all representative of the attitude of most Iraqis and reflects more of the antics that are sometimes arrived at by taking a television camera to one of these locations.

Let's take a look at perhaps the strategically more important point, and that is Fallujah. In less than 24 hours there were hopes that there were going to be joint patrols between U.S. military personnel and Iraqi police. It's not known what the future of that is, whether it will go on schedule after two serious firefights erupted. In one of them, at least dozens of gunmen armed with rocket propelled grenades attacked U.S. Marine positions. Close-air air cover was called in support. A mosque that had been used on two occasions the same day to attack U.S. forces was blown up and it was said that 8 fighters were found dead inside. Earlier, they had invaded the mosque; they had gone inside and found spent shell casings there.

But a heavy fight in Fallujah. One the U.S. tried to ignore. The very difficult thing while they're talking with community and religious leaders, they're not able to get the gunmen to listen to the message, get the message that the shooting is to stop.

Back to you.

KAGAN: And Jim, what about these efforts in Fallujah to try to get the insurgents, and just about everybody, to hand over these weapons as the deadline is extended?

CLANCY: Well, if they're not going to stop shooting, they're not going to hand in their weapons. That is the problem. This weapons handover has not worked very well at all, and I think people will tell you that. Still, it is not something that is being interpreted as a failure. Instead, they're trying to move ahead with what they really need to do. That's gain a sense of security back on the ground. The only way to do that is with joint patrols for the Iraqis working together with coalition forces. That's what they're trying to do. There is no indication, despite this fighting, that that is off track, that they're not going to move ahead with that-- Daryn.

KAGAN: Jim Clancy in Baghdad.

Other news from Iraq; we want to show you the newly adopted flag in Iraq. The nation's Governing Council approved the design. It includes symbols of peace, Islam and Iraq's Kurdish population. Within days, it will be raised above government buildings and replace the 40-year-old flag flown by Saddam Hussein.

CNN has obtained a video of alleged al Qaeda operatives confessing to Jordanian police about plans for a major chemical weapons attack in Amman. Among the targets in the alleged plot: the U.S. Embassy, the Jordanian prime minister's office and the headquarters of Jordan's intelligence service. The Jordanian government says the plan's alleged ringleader and several other suspects provided details about the plot in videotaped confessions that were recorded for use on Jordanian television. CNN has the full story including the taped confessions in a report by John Vause. You'll see it tonight on "NEWSNIGHT" at 10:00 p.m. Eastern.

Earlier today, North Korea released details on last week's devastating explosion. The death toll has passed 160 and more than 1300 are reported injured in the collision between trains carrying chemicals and fuel. North Korea's official news agency says more than 1800 homes and apartments were destroyed, and 6000 others damaged. Emergency aid is already pouring into the town near the Chinese border. A number of countries are pledging to send even more.

What happened to the combat medals that John Kerry won in Vietnam? Did Kerry throw them away after he came home and became a war protester?

The latest on that controversy now from CNN Sean Callebs who is in Washington.

Good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Daryn. Indeed, the Bush camp is hammering away at the presumptive Democratic presidential nominee, John Kerry, and his actions during the Vietnam War era. Former White House communications chief Karen Hughes is raising questions about an anti-war protest Kerry took part in during the early 1970s, when Vietnam veterans tossed their medals away. Kerry was there and now says he only threw the ribbons away and actually kept the medals.

Kerry received three Purple Hearts, a Silver Star and a Bronze Star during the Vietnam War. This morning he is defending his actions. This morning on "Good Morning America," Kerry said and we quote here.

"We threw away the symbols of the war and I am proud. I stood up and fought against it, proud I took on Richard Nixon. And I think to this day there is no distinction between the two." Referring to throwing the medals away or the ribbons away.

Now, even though Karen Hughes is no longer on the White House staff, she remains one of the President Bush's closest advisers. She says Kerry's actions raises a lot of questions.

(BEGIN VIDEO CLIP)

KAREN HUGHES, FMR. BUSH ADVISER: I also was very troubled by the fact he participated in the ceremony where veterans threw their medals away, and he only pretended to throw his. Now, I can understand that if out of conscious you take a principled stand and you decide you're so opposed to this you would throw your medals. But pretend to do so? I think that's very revealing.

(END VIDEO CLIP) CALLEBS: And these questions don't end there. She is also commenting on the fact that back in 1971, Kerry, while in Vietnam, said he personally took part in his word, "atrocities." Kerry says he regrets the choice of that word saying he participated in search and destroy missions, the burning of villages and shootings in free fire zones. He says the word "atrocity" was inappropriate and he did not mean to cast a negative light on the troops he served with in Vietnam. The Kerry camp says Hughes' comments are misleading, adding they will stand toe-to-toe with President Bush on the topic of military service any day of the week -- Daryn.

KAGAN: Sean, it's pretty interesting to hear the Bush camp going to this area of Senator Kerry's military record. It seems like that's the last place they would want to go because not wanting to draw any more attention to President Bush's military record, which took them so long to quiet down.

CALLEBS: Exactly. One thing they have been adamant about doing is staying away from that. But now they're taking a look at his record as a U.S. Senator, pointing out he has repeatedly voted against items that wouldn't help the U.S. military, and that coming from the Bush administration. Things like: the Bradley fighting machines, the B-2s and Patriot missile.

And a new ad is coming out today that really jumps on that as well.

We should point out right now, Democratic National Committee Chairman Terry McAuliffe is holding -- is having a -- holding a speech out in the Midwest. And he actually attacks Dick Cheney saying while Cheney was in Congress he basically voted against a number of military proposals as well.

KAGAN: Sean Callebs in Washington.

Sean mentioning the vice president; the U.S. Supreme Court is due to hear arguments tomorrow in the case involving Vice President Cheney and his efforts to fight the release of White House records. At issue is a study group that was chaired by Cheney, which issued recommendations on national energy policy. The White House argues that forced disclosures will hamper a president's ability to seek candid advice.

With his arraignment for child molestation charges just days away, Michael Jackson gets a new defense team. Is this a wise strategy? What about the timing of the all? Harvey Levin of "Celebrity Justice" joins us to talk about that.

And Estee Lauder's legacy, a recipe that was cooked in a kitchen, if you can believe that. A detailed look at lifetime of achievement.

And then later...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Women must have used their eyes a lot to communicate the language of seduction, as well as their dresses, their stockings and their beautiful shoes.

(END VIDEO CLIP)

KAGAN: The art of seduction, showcased for the world. We'll look at flirting during the days of Marie Antoinette and Louis the XVI.

(COMMERCIAL BREAK)

KAGAN: A wildfire is still burning in Riverside County, California about 100 miles southeast of Los Angeles. But firefighters believe they have the upper hand and this morning they declared the blaze 90 percent contained. The fire has destroyed two mobile homes, scorched 2300 acres and no injuries reported. So one bit of relief there.

President Bush, back to him now, took his campaign to Minnesota today pushing a high tech agenda that includes hydrogen fuel cell research. The Bush campaign is ready to release 10 new ads targeting Senator John Kerry's voting record on weapon systems.

Our White House correspondent Suzanne Malveaux, on the road with the president today, we find her in Minneapolis.

Good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Daryn. This is actually the president's eighth visit here to Minneapolis, Minnesota. This is, of course, a very important state to the president. He lost to Gore only by 2 1/2 percent back in 2000.

Now today he's going to be announcing some economic energy and high tech initiatives. The first one he's going to be talking about is making broadband or high speed Internet access available to all Americans by 2007 and to make it permanently tax-free.

He's also going to be talking about initiatives, some $350 million in private sector partnerships to develop research with hydrogen fuel technology. That also including the developing a hydrogen-powered car; this of course, to decrease the dependency on foreign sources of energy, as well as oil.

And then finally to make Americans' health records available electronically. This would be a voluntary program but this would be available to all Americans within 10 years or so.

Now, all of this comes at a time the president highlighting his domestic agenda but also a huge campaign and ad blitz. Ten million dollars now that are being put forward, essentially to attack Senator John Kerry's record on national defense, on national security. One of those ads being released called "troubling."

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT, UNITED STATES OF AMERICA: I'm George W. Bush and I approve this message. UNIDENTIFIED MALE (voice-over): As our troops defend America in the war on terror, they must have what it takes to win. Yet John Kerry has repeatedly opposed weapons vital to winning the war on terror: Bradley fighting vehicles, Patriot missiles, B-2 stealth bombers, F-18 fighter jets and...

(END VIDEO CLIP)

MALVEAUX: Now, the president is also going to be involved in a campaign. It's called "The Winning on -- "The Winning the War on Terror Tour." This is something that's going to go on for two weeks or so. It's is hitting swing states. It's involving U.S. officials and also defense officials who will be talking about the importance of these high tech and high-powered technology, these weapon systems and missile systems. This is something they're going after Senator Kerry, saying that he voted against some of these systems.

What is interesting, Daryn, is that Kerry camp is wasting no time in actually responding to this. We understand they're actually going to be having their own press conferences and their own events responding to each and every one of these accusations -- Daryn.

KAGAN: Thank you so much Suzanne Malveaux in Minneapolis, Minnesota. We're going to hear from you in the next hour as well, look forward to that.

From the world of sports: if you're a professional athlete, one accusation you do not want have leveled at you, Marion Jones, the latest to play defense against the allegation of steroid use.

This is CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: In New York, the end of one era and the beginning of another. Just days after arriving, the Queen Mary 2 is on its way back to England. It's a trans-Atlantic voyage that will become its regular route in the shadow of the world's largest ocean liner as its predecessor, the Queen Elizabeth 2, which is making its final trip home to England.

Estee Lauder put a new face on American business. In fact, "Time" magazine named the cosmetic queen as the only woman among the 20 most influential business geniuses of the century. She died over the weekend but leaves behind a remarkable life story as we hear from CNN's Ali Velshi.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN CORRESPONDENT (voice-over): Estee Lauder started selling skin-care products that her Hungarian uncle cooked up on a stove. And by the late 1940s, Estee Lauder, Inc. was born. In the early days, she traveled the country selling her wares in upscale department stores, like Neiman Marcus. Today, Estee Lauder products are sold in 130 countries to the tune of more than $5 billion. Lauder introduced her first fragrance in 1953. Back then, European style skin repair creams were fashionable. Lauder's version was Re-Nutriv, it sold for a $115 per pound in 1960. The 60s saw her tackle the men's fragrance market with the introduction of Aramis. By 1968, she ventured into hypoallergenic skin-care with the launch of Clinique. In 1972, she stepped out of the president's job, which went to her son Leonard, but she stayed on as CEO. And by 1988, the company controlled a third of the Prestige cosmetics market in the United States.

Over the next decade, Lauder unveiled the Botanicals cosmetics line Origens, bough the makeup company MAC, even Bobby Brown's Essential cosmetic line.

Like many powerful women, Estee Lauder was criticized by some. In a 1985 unauthorized biography, author Lee Israel criticized Lauder for her cutthroat business methods and ruthless social climbing.

(on camera): Macy's is one of those places you can buy Estee Lauder products. Ninety percent of Estee Lauder is still controlled by the company; son Leonard is the chairman. Later this year, grandson William assumes the role of CEO. And while Estee Lauder herself hasn't had an official title in the company for some years, the empire she built more than 60 years ago is today stronger than ever.

Ali Velshi, CNN Financial News, New York.

(END VIDEOTAPE)

KAGAN: Days before his arraignment, Michael Jackson makes a dramatic legal shift. But is the timing right? We're going to talk to "Celebrity Justice's" Harvey Levin and see what he thinks.

Also, graduation day is right around the corner. Gerri Willis on hand with some tips for you college grads going into the work force.

Hey, Gerr.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey Daryn, good to see you. Yes, it's all about college graduates. What do you need to know to get your financial footing? That's up next on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: Meanwhile, college graduates, our "Top Five Tips" today are for you. We are focusing on the students who will be graduating from college next month. Our personal finance editor, Gerri Willis, with us for some advice for those new grads.

I can feel their stomachs turning in anticipation and fear as we speak.

WILLIS: You bet. And you can understand why, Daryn. The average undergraduate has $18,900 worth of debt. Almost $20,000 worth of debt! Another thing that's going on here, students more and more likely to use credit cards to help pay the tab. Those folks when they graduate have $3400 in credit card debt on top of their loans!

So what do you do? There are a couple of things you can do to make the bite easier to take once you start making those college loan payments. No. 1 deduct the interest on your college loans. That's right. Uncle Sam will let you write it off. Secondly, automate the payment. If you do that, you may buy yourself a lower rate with some lenders -- Daryn.

KAGAN: So, not only do they have a lot of debt, but also the target of marketers out there?

WILLIS: Yes. Freshly minted graduates, they are prime target No. 1 for people who are selling credit cards, cell phones, you name it. My point here is shop around because you don't want to take the first offer that's presented to you. If you're getting a credit card, go to cardweb.com and see what good deals are out there for you. Avoid those deals where they say they're going to give you a zero percent interest up front for a period of time. Guess what? The numbers become pretty high, pretty fast. So, my advice, shop around. and you know, don't be trapped in one of these deals that somebody says they're giving you just because you're a graduate.

KAGAN: And there is help out there that can help you automate and make some decisions a little bit easier?

WILLIS: Right. I think this is a great idea for grads because they're already tech savvy. If you automate your payments for everything from your credit card to even your utilities, which you can do in many places now, you don't even have to think about the mechanics of paying those monthly bills. You're more likely to be on time because, let's face it, new grads are completely consumed by starting off their careers on the right foot, thinking about what they're doing at work, and they don't want to be focused on, you know, the monthly bills -- Daryn.

KAGAN: And then the dreaded B-word, budget. Nobody likes to make one of those -- Gerri.

WILLIS: Yes, I know. It's a tough thing to do but just remember three little rules of thumb. No. 1, you don't want your overall debt to be more than 20 percent of your annual pay. No. 2, don't pay more than 30 percent for housing. That's a big no-no. And try to save as much as 10 percent of your annual pay so that you have something down the road for retirement, maybe for the new house when you want to buy a house, all those good things that you want to reward yourself in the future.

KAGAN: When you say 20 percent, you mean the payments that you're making each month or your total debt?

WILLIS: I mean the payments you're making each month, because most people with a lot of college debt cannot hit that 20 percent marker if you take into account their entire debt.

KAGAN: OK, got that. And then finally, never too soon to start thinking about retirement and the 401(k)? WILLIS: I know. A lot of young people do not contribute to their company's 401(k) plan. That is a big problem, because you know what? You're giving away free money. There is always some kind of company matching the 401(k) plan or generally there is and if you don't take advantage of it, you're just giving money away. Don't do it. At least set some aside. And of course, you know my rule of thumb 10 percent in savings is going to be good for you down the road whether you're retiring, whether you're buying a house, whatever your goals on -- Daryn.

KAGAN: And for our grads, welcome to the real world and all the fun that goes with it.

WILLIS: That's right.

KAGAN: Gerri Willis, thank you so much.

WILLIS: Thank you.

KAGAN: Coming up on CNN LIVE TODAY, Kobe Bryant is back in court as the defense fights to use the accuser's past against her.

And showcasing the past, how the other half lived and loved during the 18-century.

This is CNN LIVE TODAY.

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


Aired April 26, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, HOST: All right. We'll get things started on a Monday morning. Good morning to all of you. From CNN headquarters in Atlanta, I'm Daryn Kagan.
The latest developments at this hour: an uneasy truce in the Iraqi city of Fallujah is interrupted by an intense firefight. It went on for three hours between U.S. Marines and insurgents gunmen; when it was over, at least 10 U.S. Marines had been wounded, four of them seriously, no reports on enemy casualties.

Kobe Bryant is due in court today in Eagle, Colorado, Day 1 of a three-day hearing in his sexual assault case. Decisions still to come, include a date for the trial and ground rules for testimony on his accuser's sexual activities.

Cosmetics queen Estee Lauder is dead at the age of 97. The founder of 18 Estee Lauder companies died at her home in Manhattan. Lauder was a pioneer in cosmetics marketing in the 1940s, handing out free samples and letting shoppers test her creams in department stores.

The Senate debates taxes on Internet connections and whether to permanently ban them. A temporary ban expired six months ago. The Congressional Budget Office says the ban on taxes could cost state and local governments billions of dollars.

In Iraq, clouds of smoke and a critical deadline are hanging over Fallujah. That is where the fighting has intensified today. A raging battle there left 10 U.S. Marines injured and concern reverberating to Baghdad where yet another explosion has erupted.

Our Jim Clancy is in the Iraqi capital; he has more on the latest -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Let's begin in Baghdad. It appears now this was no roadside bomb. But instead, U.S. soldiers went to a location in northwest Baghdad in an area where there are several chemical companies. They were there to look into reports that one of them had suspicious chemicals. In the course of an investigation, their inspection of the site, there was an explosion. That explosion killed two U.S. personnel. It wounded five others. There were then eight Iraqi civilians who were also hurt in the blast.

This was a scene that torched about four Humvees that were parked out in front of the building. That building, the front of it was completely demolished. Neighboring structures also heavily damaged by the force of the explosion that sent a mushroom cloud rising over that section of Baghdad.

Now, as the Humvees burned, a lot of young people came out in the street jumping and shouting anti-U.S. slogans from their positions. Even though this would seem to be anti-American sentiment, coalition spokesmen, just minutes ago, saying it's not all representative of the attitude of most Iraqis and reflects more of the antics that are sometimes arrived at by taking a television camera to one of these locations.

Let's take a look at perhaps the strategically more important point, and that is Fallujah. In less than 24 hours there were hopes that there were going to be joint patrols between U.S. military personnel and Iraqi police. It's not known what the future of that is, whether it will go on schedule after two serious firefights erupted. In one of them, at least dozens of gunmen armed with rocket propelled grenades attacked U.S. Marine positions. Close-air air cover was called in support. A mosque that had been used on two occasions the same day to attack U.S. forces was blown up and it was said that 8 fighters were found dead inside. Earlier, they had invaded the mosque; they had gone inside and found spent shell casings there.

But a heavy fight in Fallujah. One the U.S. tried to ignore. The very difficult thing while they're talking with community and religious leaders, they're not able to get the gunmen to listen to the message, get the message that the shooting is to stop.

Back to you.

KAGAN: And Jim, what about these efforts in Fallujah to try to get the insurgents, and just about everybody, to hand over these weapons as the deadline is extended?

CLANCY: Well, if they're not going to stop shooting, they're not going to hand in their weapons. That is the problem. This weapons handover has not worked very well at all, and I think people will tell you that. Still, it is not something that is being interpreted as a failure. Instead, they're trying to move ahead with what they really need to do. That's gain a sense of security back on the ground. The only way to do that is with joint patrols for the Iraqis working together with coalition forces. That's what they're trying to do. There is no indication, despite this fighting, that that is off track, that they're not going to move ahead with that-- Daryn.

KAGAN: Jim Clancy in Baghdad.

Other news from Iraq; we want to show you the newly adopted flag in Iraq. The nation's Governing Council approved the design. It includes symbols of peace, Islam and Iraq's Kurdish population. Within days, it will be raised above government buildings and replace the 40-year-old flag flown by Saddam Hussein.

CNN has obtained a video of alleged al Qaeda operatives confessing to Jordanian police about plans for a major chemical weapons attack in Amman. Among the targets in the alleged plot: the U.S. Embassy, the Jordanian prime minister's office and the headquarters of Jordan's intelligence service. The Jordanian government says the plan's alleged ringleader and several other suspects provided details about the plot in videotaped confessions that were recorded for use on Jordanian television. CNN has the full story including the taped confessions in a report by John Vause. You'll see it tonight on "NEWSNIGHT" at 10:00 p.m. Eastern.

Earlier today, North Korea released details on last week's devastating explosion. The death toll has passed 160 and more than 1300 are reported injured in the collision between trains carrying chemicals and fuel. North Korea's official news agency says more than 1800 homes and apartments were destroyed, and 6000 others damaged. Emergency aid is already pouring into the town near the Chinese border. A number of countries are pledging to send even more.

What happened to the combat medals that John Kerry won in Vietnam? Did Kerry throw them away after he came home and became a war protester?

The latest on that controversy now from CNN Sean Callebs who is in Washington.

Good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Daryn. Indeed, the Bush camp is hammering away at the presumptive Democratic presidential nominee, John Kerry, and his actions during the Vietnam War era. Former White House communications chief Karen Hughes is raising questions about an anti-war protest Kerry took part in during the early 1970s, when Vietnam veterans tossed their medals away. Kerry was there and now says he only threw the ribbons away and actually kept the medals.

Kerry received three Purple Hearts, a Silver Star and a Bronze Star during the Vietnam War. This morning he is defending his actions. This morning on "Good Morning America," Kerry said and we quote here.

"We threw away the symbols of the war and I am proud. I stood up and fought against it, proud I took on Richard Nixon. And I think to this day there is no distinction between the two." Referring to throwing the medals away or the ribbons away.

Now, even though Karen Hughes is no longer on the White House staff, she remains one of the President Bush's closest advisers. She says Kerry's actions raises a lot of questions.

(BEGIN VIDEO CLIP)

KAREN HUGHES, FMR. BUSH ADVISER: I also was very troubled by the fact he participated in the ceremony where veterans threw their medals away, and he only pretended to throw his. Now, I can understand that if out of conscious you take a principled stand and you decide you're so opposed to this you would throw your medals. But pretend to do so? I think that's very revealing.

(END VIDEO CLIP) CALLEBS: And these questions don't end there. She is also commenting on the fact that back in 1971, Kerry, while in Vietnam, said he personally took part in his word, "atrocities." Kerry says he regrets the choice of that word saying he participated in search and destroy missions, the burning of villages and shootings in free fire zones. He says the word "atrocity" was inappropriate and he did not mean to cast a negative light on the troops he served with in Vietnam. The Kerry camp says Hughes' comments are misleading, adding they will stand toe-to-toe with President Bush on the topic of military service any day of the week -- Daryn.

KAGAN: Sean, it's pretty interesting to hear the Bush camp going to this area of Senator Kerry's military record. It seems like that's the last place they would want to go because not wanting to draw any more attention to President Bush's military record, which took them so long to quiet down.

CALLEBS: Exactly. One thing they have been adamant about doing is staying away from that. But now they're taking a look at his record as a U.S. Senator, pointing out he has repeatedly voted against items that wouldn't help the U.S. military, and that coming from the Bush administration. Things like: the Bradley fighting machines, the B-2s and Patriot missile.

And a new ad is coming out today that really jumps on that as well.

We should point out right now, Democratic National Committee Chairman Terry McAuliffe is holding -- is having a -- holding a speech out in the Midwest. And he actually attacks Dick Cheney saying while Cheney was in Congress he basically voted against a number of military proposals as well.

KAGAN: Sean Callebs in Washington.

Sean mentioning the vice president; the U.S. Supreme Court is due to hear arguments tomorrow in the case involving Vice President Cheney and his efforts to fight the release of White House records. At issue is a study group that was chaired by Cheney, which issued recommendations on national energy policy. The White House argues that forced disclosures will hamper a president's ability to seek candid advice.

With his arraignment for child molestation charges just days away, Michael Jackson gets a new defense team. Is this a wise strategy? What about the timing of the all? Harvey Levin of "Celebrity Justice" joins us to talk about that.

And Estee Lauder's legacy, a recipe that was cooked in a kitchen, if you can believe that. A detailed look at lifetime of achievement.

And then later...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Women must have used their eyes a lot to communicate the language of seduction, as well as their dresses, their stockings and their beautiful shoes.

(END VIDEO CLIP)

KAGAN: The art of seduction, showcased for the world. We'll look at flirting during the days of Marie Antoinette and Louis the XVI.

(COMMERCIAL BREAK)

KAGAN: A wildfire is still burning in Riverside County, California about 100 miles southeast of Los Angeles. But firefighters believe they have the upper hand and this morning they declared the blaze 90 percent contained. The fire has destroyed two mobile homes, scorched 2300 acres and no injuries reported. So one bit of relief there.

President Bush, back to him now, took his campaign to Minnesota today pushing a high tech agenda that includes hydrogen fuel cell research. The Bush campaign is ready to release 10 new ads targeting Senator John Kerry's voting record on weapon systems.

Our White House correspondent Suzanne Malveaux, on the road with the president today, we find her in Minneapolis.

Good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Daryn. This is actually the president's eighth visit here to Minneapolis, Minnesota. This is, of course, a very important state to the president. He lost to Gore only by 2 1/2 percent back in 2000.

Now today he's going to be announcing some economic energy and high tech initiatives. The first one he's going to be talking about is making broadband or high speed Internet access available to all Americans by 2007 and to make it permanently tax-free.

He's also going to be talking about initiatives, some $350 million in private sector partnerships to develop research with hydrogen fuel technology. That also including the developing a hydrogen-powered car; this of course, to decrease the dependency on foreign sources of energy, as well as oil.

And then finally to make Americans' health records available electronically. This would be a voluntary program but this would be available to all Americans within 10 years or so.

Now, all of this comes at a time the president highlighting his domestic agenda but also a huge campaign and ad blitz. Ten million dollars now that are being put forward, essentially to attack Senator John Kerry's record on national defense, on national security. One of those ads being released called "troubling."

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT, UNITED STATES OF AMERICA: I'm George W. Bush and I approve this message. UNIDENTIFIED MALE (voice-over): As our troops defend America in the war on terror, they must have what it takes to win. Yet John Kerry has repeatedly opposed weapons vital to winning the war on terror: Bradley fighting vehicles, Patriot missiles, B-2 stealth bombers, F-18 fighter jets and...

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MALVEAUX: Now, the president is also going to be involved in a campaign. It's called "The Winning on -- "The Winning the War on Terror Tour." This is something that's going to go on for two weeks or so. It's is hitting swing states. It's involving U.S. officials and also defense officials who will be talking about the importance of these high tech and high-powered technology, these weapon systems and missile systems. This is something they're going after Senator Kerry, saying that he voted against some of these systems.

What is interesting, Daryn, is that Kerry camp is wasting no time in actually responding to this. We understand they're actually going to be having their own press conferences and their own events responding to each and every one of these accusations -- Daryn.

KAGAN: Thank you so much Suzanne Malveaux in Minneapolis, Minnesota. We're going to hear from you in the next hour as well, look forward to that.

From the world of sports: if you're a professional athlete, one accusation you do not want have leveled at you, Marion Jones, the latest to play defense against the allegation of steroid use.

This is CNN LIVE TODAY.

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KAGAN: In New York, the end of one era and the beginning of another. Just days after arriving, the Queen Mary 2 is on its way back to England. It's a trans-Atlantic voyage that will become its regular route in the shadow of the world's largest ocean liner as its predecessor, the Queen Elizabeth 2, which is making its final trip home to England.

Estee Lauder put a new face on American business. In fact, "Time" magazine named the cosmetic queen as the only woman among the 20 most influential business geniuses of the century. She died over the weekend but leaves behind a remarkable life story as we hear from CNN's Ali Velshi.

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ALI VELSHI, CNN CORRESPONDENT (voice-over): Estee Lauder started selling skin-care products that her Hungarian uncle cooked up on a stove. And by the late 1940s, Estee Lauder, Inc. was born. In the early days, she traveled the country selling her wares in upscale department stores, like Neiman Marcus. Today, Estee Lauder products are sold in 130 countries to the tune of more than $5 billion. Lauder introduced her first fragrance in 1953. Back then, European style skin repair creams were fashionable. Lauder's version was Re-Nutriv, it sold for a $115 per pound in 1960. The 60s saw her tackle the men's fragrance market with the introduction of Aramis. By 1968, she ventured into hypoallergenic skin-care with the launch of Clinique. In 1972, she stepped out of the president's job, which went to her son Leonard, but she stayed on as CEO. And by 1988, the company controlled a third of the Prestige cosmetics market in the United States.

Over the next decade, Lauder unveiled the Botanicals cosmetics line Origens, bough the makeup company MAC, even Bobby Brown's Essential cosmetic line.

Like many powerful women, Estee Lauder was criticized by some. In a 1985 unauthorized biography, author Lee Israel criticized Lauder for her cutthroat business methods and ruthless social climbing.

(on camera): Macy's is one of those places you can buy Estee Lauder products. Ninety percent of Estee Lauder is still controlled by the company; son Leonard is the chairman. Later this year, grandson William assumes the role of CEO. And while Estee Lauder herself hasn't had an official title in the company for some years, the empire she built more than 60 years ago is today stronger than ever.

Ali Velshi, CNN Financial News, New York.

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KAGAN: Days before his arraignment, Michael Jackson makes a dramatic legal shift. But is the timing right? We're going to talk to "Celebrity Justice's" Harvey Levin and see what he thinks.

Also, graduation day is right around the corner. Gerri Willis on hand with some tips for you college grads going into the work force.

Hey, Gerr.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey Daryn, good to see you. Yes, it's all about college graduates. What do you need to know to get your financial footing? That's up next on CNN LIVE TODAY.

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KAGAN: Meanwhile, college graduates, our "Top Five Tips" today are for you. We are focusing on the students who will be graduating from college next month. Our personal finance editor, Gerri Willis, with us for some advice for those new grads.

I can feel their stomachs turning in anticipation and fear as we speak.

WILLIS: You bet. And you can understand why, Daryn. The average undergraduate has $18,900 worth of debt. Almost $20,000 worth of debt! Another thing that's going on here, students more and more likely to use credit cards to help pay the tab. Those folks when they graduate have $3400 in credit card debt on top of their loans!

So what do you do? There are a couple of things you can do to make the bite easier to take once you start making those college loan payments. No. 1 deduct the interest on your college loans. That's right. Uncle Sam will let you write it off. Secondly, automate the payment. If you do that, you may buy yourself a lower rate with some lenders -- Daryn.

KAGAN: So, not only do they have a lot of debt, but also the target of marketers out there?

WILLIS: Yes. Freshly minted graduates, they are prime target No. 1 for people who are selling credit cards, cell phones, you name it. My point here is shop around because you don't want to take the first offer that's presented to you. If you're getting a credit card, go to cardweb.com and see what good deals are out there for you. Avoid those deals where they say they're going to give you a zero percent interest up front for a period of time. Guess what? The numbers become pretty high, pretty fast. So, my advice, shop around. and you know, don't be trapped in one of these deals that somebody says they're giving you just because you're a graduate.

KAGAN: And there is help out there that can help you automate and make some decisions a little bit easier?

WILLIS: Right. I think this is a great idea for grads because they're already tech savvy. If you automate your payments for everything from your credit card to even your utilities, which you can do in many places now, you don't even have to think about the mechanics of paying those monthly bills. You're more likely to be on time because, let's face it, new grads are completely consumed by starting off their careers on the right foot, thinking about what they're doing at work, and they don't want to be focused on, you know, the monthly bills -- Daryn.

KAGAN: And then the dreaded B-word, budget. Nobody likes to make one of those -- Gerri.

WILLIS: Yes, I know. It's a tough thing to do but just remember three little rules of thumb. No. 1, you don't want your overall debt to be more than 20 percent of your annual pay. No. 2, don't pay more than 30 percent for housing. That's a big no-no. And try to save as much as 10 percent of your annual pay so that you have something down the road for retirement, maybe for the new house when you want to buy a house, all those good things that you want to reward yourself in the future.

KAGAN: When you say 20 percent, you mean the payments that you're making each month or your total debt?

WILLIS: I mean the payments you're making each month, because most people with a lot of college debt cannot hit that 20 percent marker if you take into account their entire debt.

KAGAN: OK, got that. And then finally, never too soon to start thinking about retirement and the 401(k)? WILLIS: I know. A lot of young people do not contribute to their company's 401(k) plan. That is a big problem, because you know what? You're giving away free money. There is always some kind of company matching the 401(k) plan or generally there is and if you don't take advantage of it, you're just giving money away. Don't do it. At least set some aside. And of course, you know my rule of thumb 10 percent in savings is going to be good for you down the road whether you're retiring, whether you're buying a house, whatever your goals on -- Daryn.

KAGAN: And for our grads, welcome to the real world and all the fun that goes with it.

WILLIS: That's right.

KAGAN: Gerri Willis, thank you so much.

WILLIS: Thank you.

KAGAN: Coming up on CNN LIVE TODAY, Kobe Bryant is back in court as the defense fights to use the accuser's past against her.

And showcasing the past, how the other half lived and loved during the 18-century.

This is CNN LIVE TODAY.

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