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American Morning

Fallujah Burning; Role of Religion and Presidential Campaign; Change in Michael Jackson Defense

Aired April 26, 2004 - 09:00   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. The calm in Fallujah shattered again. Insurgents opened up fire on Marines and are met with an intense response there.
The celebrity child abuse case of Michael Jackson will go forward without two of its celebrity lawyers.

And parts of Arkansas under water, homes submerged. Rescue crews searching for victims lost in the flood.

All ahead this hour on AMERICAN MORNING.

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody.

Other stories that we're following this morning, Jeff Greenfield is going to join us in a moment. He is taking a the look at the delicate situation for Senator John Kerry, who is now under pressure from Roman Catholic officials who say that if a politician supports abortion, he shouldn't get communion. We're going to take a look at how this could play into the campaign.

HEMMER: Also this hour, Kobe Bryant going back to court today in Colorado, looking at what's in store over the next several days in that case, too. We'll get you out there in a moment.

O'BRIEN: Mr. Cafferty is with us.

Hello.

JACK CAFFERTY, CNN ANCHOR: How are you doing, Soledad?

Pat Tillman turned his back on a multimillion-dollar pro football contract to join the Army and fight for his country. He was killed last week in Afghanistan. Does the massive media coverage of that story detract in any way from the sacrifice that others have made? AM@CNN.com. We'll read some of your e-mail later.

HEMMER: The story was over the weekend with the draft going off on Saturday. It drew a lot of attention. Arizona already dedicating the season to Pat Tillman. The NFL may follow suit.

CAFFERTY: Ironically, he wanted no publicity for any of this stuff. HEMMER: Seldom did an interview.

CAFFERTY: Yes. And yet he winds up on the front page of every paper in the world on Saturday morning.

HEMMER: Thanks, Jack.

I want to get you to Fallujah straight away here. CNN's Karl Penhaul has been embedded there with the U.S. Marines. His ability to transmit signals and words is touch and go, but we do have him now live in Fallujah for the very latest on what we're watching here on these pictures that we saw a short time ago.

Now Karl.

KARL PENHAUL, CNN CORRESPONDENT: Sporadic gunfire can still be heard echoing across this northwest corner of the city of Fallujah. It was a very different picture, though, this morning and early afternoon because just behind me, the area just behind me was the scene of some very intense gun battles. The Marines say one of the most intense gun battles that they've had in the two or three weeks that this supposed cease-fire has been in place here in Fallujah.

Before dawn, the U.S. networks pool headed out with a Marine platoon about 200 yards this way across the cemetery. The Marines went and occupied two buildings. They were occupying those so that they could look out for suspected Iraqi insurgents. A sniper post, some positions on the other side and deeper into the city.

They holed up in those buildings for about four or five hours and then, in the words of one Marine, all hell broke loose. Iraqi insurgents had massed around the two buildings occupied by Marines and they opened fire with mortars, with rockets, with automatic weapons fire.

While we were inside that building, we saw rockets smashing into the sides of the buildings, rockets smashing through the windows. We heard mortar rounds landing nearby, exploding and setting neighboring buildings on fire.

After about an hour and a half, the Marine commander gave the order for his troops to pull back. And that they did, with the help of two U.S. tanks who were also called in to assist. The Marines withdrew through two alleys and returned to one section of their base on this northwest edge of Fallujah.

The firefight, though, continued for a good two hours after that. Very heavy exchanges of gunfire. U.S. Marine Cobra attack helicopters were called in. They were firing off missiles. And also, we're told a mortar platoon from further back in the rear was firing off 81- millimeter mortars, and those impacted in a number of buildings behind us, setting them on fire and sending plumes of black smoke into the air.

Also, there was a mosque on my right side here. It had a minaret 50 to 60 feet high. Marine commanders say they were taking sniper fire from that minaret.

That minaret has now been leveled by U.S. military ordnance, missiles and mortars. There's nothing left at all of that minaret.

The final casualty toll, according to the U.S. Marine commander, Captain Douglas Dinbeck (ph), he's told us that four Marines were wounded seriously. He also says that at least six other Marines have received shrapnel wounds, which he described as relatively superficial.

Karl Penhaul, U.S. Networks Pool, Fallujah, Iraq.

(END VIDEOTAPE)

HEMMER: Again, CNN's Karl Penhaul. We are sharing his duties with other networks around the world. And this country included Karl Penhaul reporting there and what's happening with the Marines.

There are expected patrols to take place starting tomorrow in Fallujah. Iraqis are supposed to patrol, along with coalition forces. How all this happens, though, is not clear based on what Karl Penhaul is reporting there now. Let's get to the White House and talk more about it with our senior White House correspondent, John King.

John, good morning there.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Good morning to you, Bill.

And the question now is, can you go forward with that plan for joint patrols between U.S. Marines and Iraqi security forces in the wake of more violence in Fallujah? White House officials caution us. They say we are seeing the results of one, perhaps two big firefights.

They are not playing down the significance of the fighting Karl Penhaul just reported on, but they do say it is a larger city. And they need to get a better sense of whether this is widespread, whether there is open rebellion among the insurgents, open refusal among the insurgents to cooperate with local officials before the president decides whether to go ahead with a more full-scale military offensive.

Now, obviously they are watching closely here at the White House for security concerns, for political concerns as well. Before the president hit the road today to talk about economic matters, we saw his national security adviser, Condoleezza Rice, in the Oval Office. A brief, but a very animated conversation with the president this morning before Mr. Bush hit the road.

Now, again, the president being updated on events. And Bill, it is a question here at the White House. They would like to do this with the least military force as possible, but they say it is critical as the political transition gets closer and closer to restore security in Fallujah and Najaf and other cities to crush the insurgency.

So, if necessary, the White House says there will be a much more aggressive military response. They're hoping to avoid that, Bill. "Hoping" is the key word right now.

HEMMER: John, thanks for that. John King from the front lawn of the White House.

Now Soledad with more.

O'BRIEN: Well, the coalition is hoping to resolve the standoffs in Fallujah and Najaf, as well, without any military assaults. It might be difficult. It might actually be impossible.

For analysis now, we go to CNN's military analyst, retired Army Brigadier General David Grange. He joins us from Chicago this morning.

Nice to see you, General. Thanks for joining us, as always.

A cease-fire, but the firefights continue. Even these, as we've seen in Fallujah, lasting five hours, injuring up to 10 Marines, we're told. How do you see things ending Fallujah? Do you see a military ending? Do you see a political ending? What happens?

BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Well, I think a combination of both. The issue is here, how do you maintain control, how do you maintain security in certain places in Iraq and Fallujah, as in this example, without alienating more of the population? And thought it would be a tough fight, the coalition forces could take down the insurgents even though, it's an urban environment, a very tough battlefield environment, if it wasn't for the civilians. Because the civilians suffer from the action.

So the decisions on the coalition really is driven by what to do with hurting, causing more problems with the civilians. But it can be done. It's going to be a fight. I don't think the cease-fire is going to work because of the hard-core insurgents that are in the city.

O'BRIEN: And, in fact, it really is that question of the long- term ramifications that are complicating things much more than whether the Marines could get in there and be victorious in the end. Lakhdar Brahimi, the U.N. special envoy to Iraq, had this to say this weekend on ABC. Let's listen.

(BEGIN VIDEO CLIP)

LAKHDAR BRAHIMI, U.S. SPECIAL ENVOY TO IRAQ: When you surround a city, you bomb a city, when people cannot go to hospital, if you have enemies there, this is exactly what they want you to do. To alienate more people so that more people support them rather than you.

(END VIDEO CLIP)

O'BRIEN: Basically summing up the problem there. So describe for me the non-military solution. What does it look like, in your mind?

GRANGE: Well, the non-military solution is to continue to try to help the people, continue with the reconstruction in this part of Iraq. But it's pretty hard to do unless you secure the environment, unless there's some sort of rule of law where fear is induced by others, then the legal government, the legal provisional government of Iraq, progress cannot go forward.

So you really have to eliminate the threat. You have to provide security of the environment. And to do that, you can say, well, we'll just seal off the city. Let them just rot there. Let the insurgents rot.

The problem is you have the peaceful civilians in the same environment where you have the insurgents. So how do you get the insurgents away? How do you separate them from the civilian population? How do you keep them out of mosques, out of schools, which they are going to take advantage of because they know you're going to be hesitating to fire on those facilities? It's very difficult.

O'BRIEN: What do you make of these joint patrols? These are patrols that would be made up of coalition forces, and also the Iraqi Defense Corps, the Iraqi police service, as well. Many military people have expressed serious skepticism about this working. Where do you stand on that?

GRANGE: Well, the joint patrols are only going to work in certain areas in the city. If they come under attack, or possible attack even, and the Iraqis that are patrolling with the coalition forces know they're going to be attacked, I don't think you're going to see a very good performance.

Some of these -- I mean, it's the same sect of Sunnis. I don't think it's going to work unless it's in a more benign environment of Fallujah itself. So I think hard-core areas are going to have to be U.S. only.

O'BRIEN: Brigadier General David Grange joining us. As always, thanks for your insight.

GRANGE: Thank you.

O'BRIEN: Bill?

HEMMER: I want to get to other news at 10 minutes past the hour now. Michael Jackson is getting a new legal team. Benjamin Brahman says he and Mark Garages have "stepped down" from the defense team due to complicated issues.

Thomas Mesereau, who once represented actor Robert Blake, will now be Jackson's attorneys. That's according to the pop star's official Web site. A court date now set for Friday as that case continues.

North Korea's neighbors rushing to send relief to victims of last week's huge train explosion. China, South Korea, Japan and Russia have all either sent assistance or announced plans to do so. One hundred and sixty-one are dead; that figure could go even higher. Olympic gold medalist Marion Jones denying reports that she was given performance-enhancing drugs from the Bay Area Laboratory Cooperative otherwise known as BALCO. According to the paper in San Francisco, The Chronicle, Jones is one of 30 athletes provided with steroids.

The lab's owner reportedly told federal investigators that Jones got the drugs in exchange for endorsing one of the company's nutritional products. Jones' lawyers call the accusation a "character assassination of the worst kind."

Flooding continues along much of northern central Arkansas. At least three were killed by flooding over the weekend. A 2-year-old boy still missing, swept away after his mother's car washed off a bridge near a rain-swollen creek. The governor, Mike Huckabee, expected to survey the damaged areas today.

And the aerials are tough. Thick, thick heavy water there.

O'BRIEN: Those pictures look so bad. And then, of course, the tragic stories that are coming out of there. It's horrible.

(WEATHER REPORT)

O'BRIEN: Still to come this morning, can Senator John Kerry balance his political candidacy with his Roman Catholic faith? A look at that's ahead.

HEMMER: Also, Kobe Bryant back in Colorado, the start of a three-day hearing in his sexual assault matter. We will hear from a former sex crimes prosecutor about what may come out of this hearing this week.

O'BRIEN: And, is the whole country going low-crab crazy? Some staggering new numbers are just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: To politics now and the role of religion and the presidential campaign. Like many of his 63 million fellow Americans Roman Catholics, John Kerry receives communion. Yet, Friday, a top Vatican cardinal said that no Catholic politician who backs abortion rights should receive the sacrament.

In the U.S., the Catholic clergy now split on the issue. The Vatican, in fact, said it's for the U.S. to decide what happens now.

Our senior analyst, Jeff Greenfield, looking at this.

Good morning to you.

JEFF GREENFIELD, CNN SENIOR ANALYST: Good morning.

HEMMER: It seems a bit of a reversal. You go back to the early '60s, 44 years ago, and reflections of JFK. GREENFIELD: Yes, absolutely. When John Kennedy ran, the issue then, just as it was back in 1928, when Al Smith became the first Catholic to win a major party nomination, was whether the Catholic Church would exert improper influence on a Catholic president on matters of aid to parochial schools. In fact, one of the more dramatic moments of the 1960 campaign was when John Kennedy appeared before a group of Protestant ministers in Houston and spelled out his views.

Take a listen.

(BEGIN VIDEO CLIP)

JOHN F. KENNEDY, FMR. PRESIDENT OF THE UNITED STATES: I believe in an America where the separation of Church and state is absolute. Where no Catholic appellate would tell the president, should he be Catholic, how to act, and no Protestant minister would tell his parishioners for whom to vote.

(END VIDEO CLIP)

GREENFIELD: Now, today, by contrast, the issue is whether a pro- choice Catholic candidate, like John Kerry, is too unwilling to follow the Church's teaching. It's the same issue that confronted Geraldine Ferraro, who was Walter Mondale's 1984 running mate, the first Catholic on a national ticket after the Supreme Court had declared abortion a constitutional right.

So you're right. It's a flip.

HEMMER: A bit of a hypothetical here, but if the Church were to deny communion on a Sunday to John Kerry, a political fallout would be what?

GREENFIELD: Well, at first blush, it doesn't look like it would be that significant because, if surveys are right, American Catholics tend to mirror the general population's view on abortion. They do not favor abortion on demand, they do not want it outlawed either.

But, Bill, I think this debate should not obscure what I think is the more important political point. In general, Catholics are much less like to vote Democratic than they used to, but not because of abortion.

HEMMER: Really? So if abortion is not the issue, then what is?

GREENFIELD: Well, I think what's happened is this: for decades, Catholics voted reliably Democratic. They were concentrated in big cities, they were helped by Democratic machines, they tended to back the party, the Democratic Party's strong pro-labor stance.

It started around 1968. They began moving away from the party on matters of patriotism and values, a lot of resistance to the emerging counter culture, the increasing racial tension in schools, and jobs.

So if you look at 2000, Al Gore only beat Bush 50-47 among Catholic voters. And in background states, like Ohio and Pennsylvania and Michigan and Wisconsin, George W. Bush either came very close or beat Gore among Catholics. And right now, according to one survey, Kerry leads Bush by only 45-41 among Catholics. But, again, this is not specifically church-related issues that Kerry needs to worry about, but much broader issues about whether he can connect on personality and issues.

HEMMER: Very interesting. Reflections of 44 years ago, today in 2004. Thank you, Jeff. Good to see you.

GREENFIELD: You too.

HEMMER: All right.

Here's Soledad.

O'BRIEN: All right. Time to check in with Jack and the Question of the Day.

CAFFERTY: Thank you, ma'am.

The death of former football play Pat Tillman, killed in eastern Afghanistan last week, dominated news coverage over the weekend. He walked away from a multimillion-dollar pro football contract to join the Army following the attack on America September 11. Considering the way a lot of professional athletes behave these days, Tillamook's decision stood out.

Hundreds of others, though, have lost their lives without the same media coverage. So that is the question. Does the media coverage of Pat Tillamook's death in any way diminish the sacrifice of others?

Dee in Tampa, Florida, writes: "I think one aspect missing from the Tillman coverage is that Pat would have hated all the attention diverted from other casualties. I was bombarded with many reviews of his life and sacrifice but heard very little about Sergeant Elmer Krause this weekend, another soldier who had been missing and whose body was found."

Ken in Tampa, Florida, writes: "In this complex world, we often need symbols to help us understand events. Pat Tillman has become a symbol for all the rights and wrongs of our nation at war. His life symbolizes all our young heroes participating in the war in Iraq. His death symbolizes the horrible price we paid for an unnecessary war."

And Dan in Vista, California, writes: "Finally we have a dead millionaire in Afghanistan, and everybody wants to give him a medal. The same day that PFC Tillman was killed, there were five other young men killed in Iraq. As of today, I've never heard their names. For that matter, there's only been a few times that they had been mentioned at all."

O'BRIEN: Interesting points. I tell you, there is not one person who writes who I disagree with their perspective, although even though they're often completely contradictory. CAFFERTY: That's an interesting question, which, after all, that's why we're here.

O'BRIEN: That's right. Each and every day.

CAFFERTY: That be our job.

O'BRIEN: Yes, it is.

Coming up, a check on the latest from Iraq. Fierce fighting in Fallujah, despite a cease-fire which remains in place there.

And also, some strange legal maneuvers just days before Michael Jackson's arraignment. He dumped his lawyers. We'll tell you why. That's ahead on AMERICAN MORNING.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Now to the Kobe Bryant sexual assault case. The new pretrial hearing begins today in Colorado.

And Linda Fairstein is a former New York City sex crimes prosecutor. Also a best-selling author. She's working on her next book now. Her current book, though, is titled "The Kills." And she joins us to talk about what you can expect from this three-day court proceeding.

Let's first talk a little bit about the trial date. Both sides have now on the record said they want it to be fast. So if you had to guess, when is the trial going to begin?

LINDA FAIRSTEIN, FMR. SEX CRIMES PROSECUTOR: Well, fast in the criminal justice context has an entirely different meaning. And I don't think anybody really expects it to be before the fall or winter despite the language.

O'BRIEN: Really?

FAIRSTEIN: Right. There is still a lost of unfinished business. These hearings will create some new issues, the judge will have to rule on them. There is still, I believe, scientific evidence that has been exchanged, and we don't have all of the results. So I think it's unrealistic to expect a trial before September.

O'BRIEN: Does it really make an impact when the defense and the prosecution both say, listen, our client really wants a speedy trial? I mean, is it sort of like, yes, we'll do our best? But do they take it really into consideration or no?

FAIRSTEIN: Well, yes. I mean, I think everybody would like the trial to start and be over with. But it's not that the judge is holding them back from doing that.

There were -- there was scientific evidence sent out, the DNA analysis, as we know. That was a slow process in this case. It can be done much faster.

There are so many motions. The defense is -- they're good lawyers, as we've discussed before, and they're filling us up with a lot of new motions whenever something develops. I believe there are still at least 12 unresolved issues...

O'BRIEN: So a lot of work to do still.

FAIRSTEIN: A lot of -- yes.

O'BRIEN: In light of the judge saying no last week to the release of the medical records, what do you think the chances are that the accuser's sexual history will be allowed in court?

FAIRSTEIN: OK. Last week, we had the ruling that prohibits the defense from going into the prior psychiatric hospitalization and medical history directly, although there are still issues about whether witnesses who know about...

O'BRIEN: Could talk about it anyway?

FAIRSTEIN: Could talk about it. Now, this week are the rape shield law hearings. And I think that there are significant issues that the defense has raised.

For example, the prosecution is going to claim that there were injuries that this victim sustained internally. If that's true, and the defense can realistically prove that within hours of the alleged assault there might have been activity that -- during which the same injuries could have been sustained, they might have a shot at doing it.

So I think the judge is going to parse and get out some of the very irrelevant sexual history, things that happened months, weeks ago, that the defense may be alleging. But I think you're going to see at least perhaps two individuals, the bell man and the ex- boyfriend, who may be the subject of an inquiry.

O'BRIEN: At some point. Bryant in the middle of a tough playoff series. So I'm curious to know, do judges take that into consideration when they're dealing with a high profile person, whether that person is the defendant or that person is bringing the charges?

Would they say, you know, boy, it would be easier to schedule this just out of consideration? Or, no, whatever is going to happen is whatever is going to happen, and everybody's schedule is going to follow the judge's?

FAIRSTEIN: Well, I think whenever the world is watching a judge like this, he's going to say, no, we can't pay attention to the schedule, this comes first. And probably on a human level, everybody does pay a little bit of attention to the schedule. So I think the judge is under pressure not to let that get in the way of these hearings.

O'BRIEN: Linda Fairstein, nice to see you, as always. FAIRSTEIN: Thank you.

O'BRIEN: Thank you for joining us.

Bill?

HEMMER: Soledad, in a moment here, the Olsen twins growing up. The sister act getting a new image, too, we are told.

Plus the (UNINTELLIGIBLE) of the box office all part of "90- Second Pop" in a few minutes away from here.

Also, opening bell on a Monday right after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

HEMMER: Welcome back to AMERICAN MORNING; 9:30 here in New York.

In a moment, Michael Jackson has a new attorney. Mark Geragos, Benjamin Brafman are out. What happened to the shakeup? Who steps in? We'll talk to Jeff Toobin, who has been all over this story so far today.

O'BRIEN: Also this morning, another celebrity case moves closer to its conclusion, we think. Closing arguments are scheduled to begin today in the Jayson Williams trial. It has certainly been a long haul in this trial. We will see how much more time is actually likely.

HEMMER: So true.

O'BRIEN: Before any of that, though, let's get right to our top stories this morning.

U.S. Marines are clashing with Iraqi insurgents in Fallujah. At least 10 Marines wounded, four of them seriously, we are told. The violence comes despite a recent extension to the cease-fire there. U.S. Marines plan to start training Iraqi security forces to join them in patrolling that city.

Nearly 500 people have been quarantined in China in an effort to contain the SARS virus. Two confirmed cases, six suspected cases have been announced there over the past week. Authorities in China are worried that the disease might spread during the upcoming May Day national holiday. The newest outbreak is linked to people working in a SARS laboratory in Beijing.

And U.S. politics on the campaign trail. Jobs the focus this week. President Bush heads to Minnesota today, where he will promote job training programs. Democratic presidential candidate John Kerry is kicking off a four-state bus tour in Wheeling, West Virginia. Senator Kerry is asking voters there to hop on the jobs first express.

Hundreds of homes in southern California are being threatened by a blazing wildfire. Firefighters have been battling the flames since yesterday with some air support. The wildfires burned more than 2,000 acres, but no reports of any injuries at this time, fortunately.

(WEATHER REPORT)

HEMMER: Michael Jackson's lead attorneys, Mark Geragos and Benjamin Brafman, two well known members of the legal community, now stepping down from the defense of the pop star. The move comes just days after Jackson was indicted by a grand jury and only days before his arraignment in Santa Barbara.

Our legal analyst, Jeffrey Toobin, back with us to talk about this.

Good morning to you.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Howdy.

HEMMER: What was the rub here in California?

TOOBIN: Well, I think a lot of it had to do with publicity, Michael Jackson's entourage, which is how a case like this is run. You don't just have a client; you have the client's entourage. It was very upset that on cable TV, the current defense team, Geragos and Brafman, weren't responding to every charge, weren't getting involved in every controversy.

Geragos and Brafman said, look, we don't think we should justify every little attack with the response. Plus, we're under a gag order. And that conflict, Bill -- and ultimately there was a parting of the ways.

HEMMER: So your defense sources are telling you that Michael Jackson's team was worried about the news cycle that surrounded this story and some cases on a daily basis?

TOOBIN: Principally, Randy and Jermaine Jackson, two of the Jackson Five who are now very much involved in Michael Jackson's defense. They were intensely interested in the give and take on cable TV, where as Brafman and Geragos were saying, look, let's do the job in the courtroom. That's the only thing that matters.

HEMMER: I know you spoke with some sources on the defense team. Brafman and Geragos, are they upset about this?

TOOBIN: I think philosophical is word. Yes, any lawyer would love the challenge of a case like this, one that they particularly regard as winnable. But, you know, these are strong egos, they control their own cases. And if they felt that they couldn't try the case the way they wanted to, it wasn't worth staying in.

HEMMER: I know you speak a lot, highly of Benjamin Brafman.

TOOBIN: I certainly do.

HEMMER: Thomas Mesereau is the guy who's stepping in. What do you know? TOOBIN: I have not personally seen him in action. But people I know, and by reputation, he is has an excellent reputation. He's done a lot of work, a lot of pro bono work.

He was on and off the Robert Blake case, which is how most people in the public know him. But he's a serious player. And in this respect, at least in getting rid of Geragos and Brafman, who are highly regarded, they went for someone else who has a good reputation.

HEMMER: All right. Thanks, Jeff. We'll talk Michael Jackson today. Tomorrow, we'll talk Jayson Williams.

TOOBIN: If there is a verdict. That case has been dragging on for months.

HEMMER: Well, listen, we're going to get to it right now. Jeff, thanks for that.

TOOBIN: OK.

HEMMER: The Jayson Williams matter could go to the jury as early as tomorrow, we're told. Closing arguments in the trial set to begin today. In fact, about 25 minutes from now in Somerville, New Jersey.

Deborah Feyerick is watching that trial for us.

Good morning, Deb.

DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Bill.

Well, today, both sides will try to weave all of their elements together, the eyewitnesses, the evidence, the gun testimony. Jayson Williams' legal team trying to drive home to the jury that this was not aggravated or reckless manslaughter, as prosecution has spent the last three months trying to prove.

(BEGIN VIDEOTAPE)

FEYERICK (voice-over): Was it an accident or not? For Jayson Williams, the jury's answer is everything. The judge set to tell the jurors...

JUDGE EDWARD COLEMAN, N.J. SUPERIOR COURT: The state has only proven that the death of Mr. Christophi was only an accident, then you must find him not guilty.

FEYERICK: The shooting of all the limo driver happened two years, ago inside the master bedroom of Williams' 80-room mansion. Four friends who had been out with Williams that night were given immunity to testify against him. Harlem Globe Trotter Paul Gaffney describing the chaotic aftermath.

PAUL GAFFNEY, HARLEM GLOBE TROTTER: Jayson was like, "Are you OK? Are you OK? Please tell me you're OK."

FEYERICK: Another Globe Trotter, Benoit Benjamin, testified he was close enough to see Williams with his finger inside the trigger loop. But a defense expert says wood chips inside the firing mechanism could have caused the shotgun to misfire.

RICHARD ERNEST, DEFENSE EXPERT: It's my opinion that this shotgun was basically an accident waiting to happen.

FEYERICK: One friend who cut a deal with prosecutors described how Williams wiped fingerprints from the shotgun, moving it to look like the driver had killed himself. The judge will tell the jury they can consider the defense argument Williams panicked and didn't realize a cover-up was criminal.

Closing arguments should have taken place three weeks ago. The trial almost derailed when prosecutors discovered they failed to tell Williams' legal team an engineer from the gun company had taken the shotgun apart.

Williams was allowed to reopen his case. That's when the judge threw out tests by the state's chief gun expert who found he could not get the gun to misfire. Williams did not testify, telling the judge...

JAYSON WILLIAMS, DEFENDANT: I put my trust in god, and I have great confidence in this jury.

(END VIDEOTAPE)

FEYERICK: There are eight charges against Jayson Williams. The most serious, aggravated manslaughter. It carries a maximum of 30 years in prison -- Bill.

HEMMER: Deb Feyerick, thanks. Watching that trial for us in New Jersey.

Soledad?

O'BRIEN: Well, millions of Americans are joining the low-carb diet craze. And there's a glut of new products on the stores' shelves to feed the low-carb nation. The trend is TIME Magazine's cover story this week, and Dr. Sanjay Gupta joins us from the CNN Center to talk a little bit more about it.

Good morning to you, Sanjay.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, Soledad.

Yes, this is becoming a very big deal. Obviously, lots of people hearing about the low-carb, high-protein diets. We talked about good carbs and bad carbs, all that sort of stuff. But a new poll now from Opinion Dynamics trying to put context into this, how many people using these diets.

Now, take a look at the numbers. Really pretty high, I thought. Seventy million people now on some sort of carb-limiting diet. Some of them freelance carb limiters, some of them -- 26 million of them hard-core low-carb people. They eat little or no carbs on a daily basis. Pretty remarkable, Soledad.

There's also -- another number I thought interesting, 1,558 new products out there over the last two years that are specifically low or no-carb products. You can get everything from beer to cake to ice cream to even spaghetti, really usually considered a very carb-laden food.

There's also a lot of reading to be done on this. One hundred and forty books on low-carb or no-carb diets out there. Expect another 51 this year, Soledad.

Remember the low fat craze years ago? Well, the low-carb craze is certainly here. We're going to hear about it more and more -- Soledad.

O'BRIEN: Sanjay, a question for you. When you talk about the impact on the body, of course the whole idea behind carbs, I guess, is the insulin levels and what makes you really keep on weight and things like that. I guess the question would be, is there a conclusion about whether this is safe or not?

GUPTA: Well, it's a very interesting question. I mean, all of the dietitians that we talked to, all of the nutritionists, when we say, what should the average person do? They say the average person should eat a balanced diet and exercise. What this is, is a quick fix, or at least an attempt at it.

Now, the question about whether or not it's safe is a good one. Something that's been studied at least short term. Some of those studies coming out of North Carolina, talking about the fact that while you would expect cholesterol levels and saturated fat levels to go up, at least in the six-month trials, people on low-carb diets, high-protein diets, high-fat diets, did not have that problem so much. But there's still the concerns over kidney problems, osteoporosis, and liver problems with the high-protein diets. And there is concern about strokes with the high saturated fat diet.

So bottom line, Soledad, it's a complicated question, because a lot of people, they want this quick fix and they want to believe it's safe. If you are going to go on a low carbohydrate diet, make sure to get your vitamins and nutrients. Take your fish oil supplements, which are recommended, and your multi dose vitamin as well -- Soledad.

O'BRIEN: All right. Sanjay Gupta with some great advice for us this morning.

Have you ever done one of those low carb diets?

HEMMER: I sure have.

O'BRIEN: Really? Did it work for you?

HEMMER: Yes. O'BRIEN: Really?

HEMMER: Yes.

O'BRIEN: How much weight did you lose?

HEMMER: You lose -- I think I lost maybe five pounds.

O'BRIEN: Did you gain it all back?

HEMMER: No. I stick to it.

O'BRIEN: Really? For how long?

HEMMER: I tell you what, you feel so much better because you never feel bloated or full.

O'BRIEN: Because you lost five pounds or because of what you're eating?

HEMMER: No, because of what you're eating. If you take away the starches and the carbs and the bread, it doesn't occupy the space in your tummy.

O'BRIEN: Let's not talk about space in the tummy, mister. You have no idea.

HEMMER: That's right.

In a moment here, attention Kmart shoppers. Finally some good news for Martha Stewart. Andy Serwer tells you about that in a moment here.

O'BRIEN: And "Piano Man" Billy Joel, he's one of the world's best singers, song writers. But he might want to work on his driving. Our "90-Second Pop" panel takes a look at that.

That's ahead as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

O'BRIEN: Good morning. Welcome, everybody. It's time now for another all new episode of "90-Second Pop." The gang's all with us this morning.

Andy Borowitz, the author of "Governor Arnold," New York Magazine contributing editor Sarah Bernard; and Toure, contributing editor for Rolling Stone, good morning to all of you. We have so much to get through. Let's just get going.

Sarah, you're going to start for me. Billy Joel, third time in recent history.

SARAH BERNARD, NEW YORK MAGAZINE: I know. Another car accident for Billy Joel.

O'BRIEN: And this is an odd one because he ran into a house.

BERNARD: He did. This was actually not in the Hamptons. It was in Mid Island.

And what happened was, apparently, he was not drinking this time. He just literally lost control of his 1967 Citron, which I have to say, I mean, does that even have seat belts? That is not a car that you should be driving.

O'BRIEN: But they also, by the same token, won't do a lot of damage when they hit a house.

BERNARD: That's right. They sort of bounce right off the house.

TOURE, ROLLING STONE: (UNINTELLIGIBLE) just to Billy.

O'BRIEN: Is he fine now?

BERNARD: He wasn't hurt. He was just shaken up about it. And then, of course, it made all the news because he's been -- this is pattern for Billy.

ANDY BOROWITZ, HUMORIST: But you know the good new for Billy Joel? He just got a great rate on his car insurance by Geico. So that's good news.

(CROSSTALK)

BERNARD: And this time, actually, his daughter was not in the car, which was one of the concerns of Christie Brinkley...

O'BRIEN: Right -- the last time.

BERNARD: Because they kept fighting about it because she was worried that something was going to happen to Alexa.

O'BRIEN: Yes, he has what I would call a non-stellar driving record. Certainly over the last...

BOROWITZ: Maybe he should stay in his house and let people drive (UNINTELLIGIBLE). That's what I would do.

O'BRIEN: The Olsen twins -- which they hate to be called the Olsen twins. I mean, literally, publicists are like, "Do not call them the Olsen twins." So they're Mary-Kate...

BOROWITZ: Well, you've done it three times.

O'BRIEN: I know. Only because -- well, they are the Olsen twins.

BOROWITZ: Right, Mary-Kate and Ashley.

O'BRIEN: Mary-Kate and Ashley are trying to re-launch.

BOROWITZ: Right. Well, they are -- you know, I was shocked. They're turning 18, which just shocked me, because they've been around so long. I thought they were like 40. I was just amazed.

O'BRIEN: They were the little babies on "Full House."

BOROWITZ: They've been with us forever.

TOURE: Now they're so rich they could buy and sell John Stamos.

BOROWITZ: That is true.

BERNARD: That's right. But if you Google their 18th birthday, Mary-Kate and Ashley, something like 3,000 Web sites come up, counting down to the exact second.

O'BRIEN: That's odd. That's just weird.

(CROSSTALK)

BOROWITZ: Well, if you're a reader of "Teen People," as I am, you'll find the Olsen twins are actually the most powerful people on the universe. So we should be concerned about their every move.

And this is actually a big deal, because they're now talking about how do they grow up. Because they're 18, how do they change their image.

The only piece of advice I would give them is, just don't listen to the Bush twins. They're not a source of good advice on this topic.

O'BRIEN: Not necessarily.

Let's talk about the weekend box office. Who is going to tackle that?

BERNARD: Well, it's really been a tie.

O'BRIEN: "Thirteen Going on Thirty."

BERNARD: And "Man on Fire."

O'BRIEN: That seems like a cute movie.

BERNARD: It is a very cute movie. Jennifer Garner, everyone is comparing her to Julia Roberts now.

TOURE: Didn't they steal the script from "Big" and put it to a woman?

O'BRIEN: Welcome to Hollywood.

(CROSSTALK)

O'BRIEN: And what did "Big" steal the script from? Something else, I'm sure. Everything's a remake. Please, Toure.

BERNARD: But apparently guys like her and girls like her, which is a hard combination, because usually you get one or the other. And then you have the complete other side of the spectrum, "Man on Fire," which is one of those revenge stories again.

BOROWITZ: Which one was Billy Joel on his way to see?

BERNARD: "Man on Fire."

BOROWITZ: OK. That would have changed things.

O'BRIEN: You guys crack me up. Well, we ran through a lot today. Good job. Andy and Sarah and Toure, thank you so much.

Bill, back to you.

HEMMER: All right, Soledad.

In a moment here, it's not all bad news these days for Martha Stewart. Andy explains that in a moment here on AMERICAN MORNING.

Back after this.

(COMMERCIAL BREAK)

O'BRIEN: We've got this just in to CNN this morning: we've got word that two U.S. soldiers have been killed today, five more injured in that blast that we've been telling you about all morning in Baghdad. Apparently, that blast taking place in a chemical storage facility.

The explosion leveled parts of a building as the U.S. troops were searching it for some suspicious chemicals, and that apparently is when the two U.S. soldiers were killed. The remainder were injured. So a total seven casualties to report: two dead, five injured there.

And it really goes with what we've been talking about all morning outside of Fallujah and Najaf as well. And now in Baghdad, too. Just exactly how do you manage what is a tenuous situation in keeping the peace and not killing civilians, keeping U.S. soldiers alive and allowing them to do the job that they've been sent to do and getting the insurgents out of these areas? Very, very difficult.

HEMMER: Extremely. And this will be Topic A again tomorrow, because Tuesday initially was the deadline yesterday, and where the insurgents were told they had to turn in their heavy weapons or else there would be hell to pay essentially by the U.S Marines.

So that story's out of Baghdad now. More a bit later here.

On other news back here in the U.S., though, Lance Armstrong losing his main sponsor in the Tour de France. And Kmart and Martha Stewart will keep their relationship alive.

For that and a check of the markets, Andy Serwer back with us, "Minding Your Business" today. First to the markets, I guess.

Good morning.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Let's do that. And, you know, the market keeps a close eye on that news overseas as well. So far, shaking it off.

The Dow up 24 points here, Nasdaq up as well. One stock moving to the upside this morning is Boeing. It got a new order for its 7E7 aircraft. That's the first new airplane that's put out in 10 years from a Japanese airliner. A $6 billion order. That stock is moving.

Another stock moving is Martha Stewart Omnimedia. It's up about 30 cents, to $10 and change. That on the news that Martha and Kmart have made nice, apparently.

You may remember they had this business relationship. Kmart sued Martha Stewart. Now apparently it's just crossing the tape about an hour ago they have laid aside their differences and extended their deal.

Very important for Martha Stewart. They've extended the deal two more years to 2009. They're also going to be selling new products from Martha Stewart, including furniture, which has been going very well, and, of course, dropping a lawsuit between the two companies. So that's a good thing.

HEMMER: And if she loses her appeal, they will have this relationship going while she is essentially behind bars.

SERWER: Yes. It could be that Kmart sees the worst being over. Of course, Kmart has its own problems, though.

HEMMER: Tour de Lance continues.

SERWER: Yes. This is kind of an interesting story. Lance Armstrong just won the Tour de Georgia over the weekend. Good for him. But some bad news.

The U.S. Post Office, which had sponsored his team, will now be dropping the sponsorship at the end of 2004. In July, Lance goes for his record sixth Tour de France, which is the only one he really cares about. After that, it's over. Apparently, the Post Office...

(CROSSTALK)

HEMMER: So he wins five in a row, what have you done for me lately, huh? Not good enough for the...

SERWER: Yes. Well, (UNINTELLIGIBLE) about how much they spent and whether it was really worth all the money...

HEMMER: Thank you, Andy.

SERWER: OK.

HEMMER: Coming up next hour on CNN, a number of new details coming out of Iraq in the past few minutes. The situation of Fallujah is ongoing.

Also, what Soledad just talked about, this chemical explosion in Baghdad from a few hours ago.

Daryn has all of that next hour. We're back in a moment on AMERICAN MORNING after this.

(COMMERCIAL BREAK)

HEMMER: We've got to run. Hope to see you tomorrow on Tuesday for Jack and Andy and Soledad. And we'll see you then, OK? First thing tomorrow morning.

Daryn, back to you now at the CNN Center to pick it up from here.

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 - 09:00   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. The calm in Fallujah shattered again. Insurgents opened up fire on Marines and are met with an intense response there.
The celebrity child abuse case of Michael Jackson will go forward without two of its celebrity lawyers.

And parts of Arkansas under water, homes submerged. Rescue crews searching for victims lost in the flood.

All ahead this hour on AMERICAN MORNING.

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody.

Other stories that we're following this morning, Jeff Greenfield is going to join us in a moment. He is taking a the look at the delicate situation for Senator John Kerry, who is now under pressure from Roman Catholic officials who say that if a politician supports abortion, he shouldn't get communion. We're going to take a look at how this could play into the campaign.

HEMMER: Also this hour, Kobe Bryant going back to court today in Colorado, looking at what's in store over the next several days in that case, too. We'll get you out there in a moment.

O'BRIEN: Mr. Cafferty is with us.

Hello.

JACK CAFFERTY, CNN ANCHOR: How are you doing, Soledad?

Pat Tillman turned his back on a multimillion-dollar pro football contract to join the Army and fight for his country. He was killed last week in Afghanistan. Does the massive media coverage of that story detract in any way from the sacrifice that others have made? AM@CNN.com. We'll read some of your e-mail later.

HEMMER: The story was over the weekend with the draft going off on Saturday. It drew a lot of attention. Arizona already dedicating the season to Pat Tillman. The NFL may follow suit.

CAFFERTY: Ironically, he wanted no publicity for any of this stuff. HEMMER: Seldom did an interview.

CAFFERTY: Yes. And yet he winds up on the front page of every paper in the world on Saturday morning.

HEMMER: Thanks, Jack.

I want to get you to Fallujah straight away here. CNN's Karl Penhaul has been embedded there with the U.S. Marines. His ability to transmit signals and words is touch and go, but we do have him now live in Fallujah for the very latest on what we're watching here on these pictures that we saw a short time ago.

Now Karl.

KARL PENHAUL, CNN CORRESPONDENT: Sporadic gunfire can still be heard echoing across this northwest corner of the city of Fallujah. It was a very different picture, though, this morning and early afternoon because just behind me, the area just behind me was the scene of some very intense gun battles. The Marines say one of the most intense gun battles that they've had in the two or three weeks that this supposed cease-fire has been in place here in Fallujah.

Before dawn, the U.S. networks pool headed out with a Marine platoon about 200 yards this way across the cemetery. The Marines went and occupied two buildings. They were occupying those so that they could look out for suspected Iraqi insurgents. A sniper post, some positions on the other side and deeper into the city.

They holed up in those buildings for about four or five hours and then, in the words of one Marine, all hell broke loose. Iraqi insurgents had massed around the two buildings occupied by Marines and they opened fire with mortars, with rockets, with automatic weapons fire.

While we were inside that building, we saw rockets smashing into the sides of the buildings, rockets smashing through the windows. We heard mortar rounds landing nearby, exploding and setting neighboring buildings on fire.

After about an hour and a half, the Marine commander gave the order for his troops to pull back. And that they did, with the help of two U.S. tanks who were also called in to assist. The Marines withdrew through two alleys and returned to one section of their base on this northwest edge of Fallujah.

The firefight, though, continued for a good two hours after that. Very heavy exchanges of gunfire. U.S. Marine Cobra attack helicopters were called in. They were firing off missiles. And also, we're told a mortar platoon from further back in the rear was firing off 81- millimeter mortars, and those impacted in a number of buildings behind us, setting them on fire and sending plumes of black smoke into the air.

Also, there was a mosque on my right side here. It had a minaret 50 to 60 feet high. Marine commanders say they were taking sniper fire from that minaret.

That minaret has now been leveled by U.S. military ordnance, missiles and mortars. There's nothing left at all of that minaret.

The final casualty toll, according to the U.S. Marine commander, Captain Douglas Dinbeck (ph), he's told us that four Marines were wounded seriously. He also says that at least six other Marines have received shrapnel wounds, which he described as relatively superficial.

Karl Penhaul, U.S. Networks Pool, Fallujah, Iraq.

(END VIDEOTAPE)

HEMMER: Again, CNN's Karl Penhaul. We are sharing his duties with other networks around the world. And this country included Karl Penhaul reporting there and what's happening with the Marines.

There are expected patrols to take place starting tomorrow in Fallujah. Iraqis are supposed to patrol, along with coalition forces. How all this happens, though, is not clear based on what Karl Penhaul is reporting there now. Let's get to the White House and talk more about it with our senior White House correspondent, John King.

John, good morning there.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Good morning to you, Bill.

And the question now is, can you go forward with that plan for joint patrols between U.S. Marines and Iraqi security forces in the wake of more violence in Fallujah? White House officials caution us. They say we are seeing the results of one, perhaps two big firefights.

They are not playing down the significance of the fighting Karl Penhaul just reported on, but they do say it is a larger city. And they need to get a better sense of whether this is widespread, whether there is open rebellion among the insurgents, open refusal among the insurgents to cooperate with local officials before the president decides whether to go ahead with a more full-scale military offensive.

Now, obviously they are watching closely here at the White House for security concerns, for political concerns as well. Before the president hit the road today to talk about economic matters, we saw his national security adviser, Condoleezza Rice, in the Oval Office. A brief, but a very animated conversation with the president this morning before Mr. Bush hit the road.

Now, again, the president being updated on events. And Bill, it is a question here at the White House. They would like to do this with the least military force as possible, but they say it is critical as the political transition gets closer and closer to restore security in Fallujah and Najaf and other cities to crush the insurgency.

So, if necessary, the White House says there will be a much more aggressive military response. They're hoping to avoid that, Bill. "Hoping" is the key word right now.

HEMMER: John, thanks for that. John King from the front lawn of the White House.

Now Soledad with more.

O'BRIEN: Well, the coalition is hoping to resolve the standoffs in Fallujah and Najaf, as well, without any military assaults. It might be difficult. It might actually be impossible.

For analysis now, we go to CNN's military analyst, retired Army Brigadier General David Grange. He joins us from Chicago this morning.

Nice to see you, General. Thanks for joining us, as always.

A cease-fire, but the firefights continue. Even these, as we've seen in Fallujah, lasting five hours, injuring up to 10 Marines, we're told. How do you see things ending Fallujah? Do you see a military ending? Do you see a political ending? What happens?

BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Well, I think a combination of both. The issue is here, how do you maintain control, how do you maintain security in certain places in Iraq and Fallujah, as in this example, without alienating more of the population? And thought it would be a tough fight, the coalition forces could take down the insurgents even though, it's an urban environment, a very tough battlefield environment, if it wasn't for the civilians. Because the civilians suffer from the action.

So the decisions on the coalition really is driven by what to do with hurting, causing more problems with the civilians. But it can be done. It's going to be a fight. I don't think the cease-fire is going to work because of the hard-core insurgents that are in the city.

O'BRIEN: And, in fact, it really is that question of the long- term ramifications that are complicating things much more than whether the Marines could get in there and be victorious in the end. Lakhdar Brahimi, the U.N. special envoy to Iraq, had this to say this weekend on ABC. Let's listen.

(BEGIN VIDEO CLIP)

LAKHDAR BRAHIMI, U.S. SPECIAL ENVOY TO IRAQ: When you surround a city, you bomb a city, when people cannot go to hospital, if you have enemies there, this is exactly what they want you to do. To alienate more people so that more people support them rather than you.

(END VIDEO CLIP)

O'BRIEN: Basically summing up the problem there. So describe for me the non-military solution. What does it look like, in your mind?

GRANGE: Well, the non-military solution is to continue to try to help the people, continue with the reconstruction in this part of Iraq. But it's pretty hard to do unless you secure the environment, unless there's some sort of rule of law where fear is induced by others, then the legal government, the legal provisional government of Iraq, progress cannot go forward.

So you really have to eliminate the threat. You have to provide security of the environment. And to do that, you can say, well, we'll just seal off the city. Let them just rot there. Let the insurgents rot.

The problem is you have the peaceful civilians in the same environment where you have the insurgents. So how do you get the insurgents away? How do you separate them from the civilian population? How do you keep them out of mosques, out of schools, which they are going to take advantage of because they know you're going to be hesitating to fire on those facilities? It's very difficult.

O'BRIEN: What do you make of these joint patrols? These are patrols that would be made up of coalition forces, and also the Iraqi Defense Corps, the Iraqi police service, as well. Many military people have expressed serious skepticism about this working. Where do you stand on that?

GRANGE: Well, the joint patrols are only going to work in certain areas in the city. If they come under attack, or possible attack even, and the Iraqis that are patrolling with the coalition forces know they're going to be attacked, I don't think you're going to see a very good performance.

Some of these -- I mean, it's the same sect of Sunnis. I don't think it's going to work unless it's in a more benign environment of Fallujah itself. So I think hard-core areas are going to have to be U.S. only.

O'BRIEN: Brigadier General David Grange joining us. As always, thanks for your insight.

GRANGE: Thank you.

O'BRIEN: Bill?

HEMMER: I want to get to other news at 10 minutes past the hour now. Michael Jackson is getting a new legal team. Benjamin Brahman says he and Mark Garages have "stepped down" from the defense team due to complicated issues.

Thomas Mesereau, who once represented actor Robert Blake, will now be Jackson's attorneys. That's according to the pop star's official Web site. A court date now set for Friday as that case continues.

North Korea's neighbors rushing to send relief to victims of last week's huge train explosion. China, South Korea, Japan and Russia have all either sent assistance or announced plans to do so. One hundred and sixty-one are dead; that figure could go even higher. Olympic gold medalist Marion Jones denying reports that she was given performance-enhancing drugs from the Bay Area Laboratory Cooperative otherwise known as BALCO. According to the paper in San Francisco, The Chronicle, Jones is one of 30 athletes provided with steroids.

The lab's owner reportedly told federal investigators that Jones got the drugs in exchange for endorsing one of the company's nutritional products. Jones' lawyers call the accusation a "character assassination of the worst kind."

Flooding continues along much of northern central Arkansas. At least three were killed by flooding over the weekend. A 2-year-old boy still missing, swept away after his mother's car washed off a bridge near a rain-swollen creek. The governor, Mike Huckabee, expected to survey the damaged areas today.

And the aerials are tough. Thick, thick heavy water there.

O'BRIEN: Those pictures look so bad. And then, of course, the tragic stories that are coming out of there. It's horrible.

(WEATHER REPORT)

O'BRIEN: Still to come this morning, can Senator John Kerry balance his political candidacy with his Roman Catholic faith? A look at that's ahead.

HEMMER: Also, Kobe Bryant back in Colorado, the start of a three-day hearing in his sexual assault matter. We will hear from a former sex crimes prosecutor about what may come out of this hearing this week.

O'BRIEN: And, is the whole country going low-crab crazy? Some staggering new numbers are just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: To politics now and the role of religion and the presidential campaign. Like many of his 63 million fellow Americans Roman Catholics, John Kerry receives communion. Yet, Friday, a top Vatican cardinal said that no Catholic politician who backs abortion rights should receive the sacrament.

In the U.S., the Catholic clergy now split on the issue. The Vatican, in fact, said it's for the U.S. to decide what happens now.

Our senior analyst, Jeff Greenfield, looking at this.

Good morning to you.

JEFF GREENFIELD, CNN SENIOR ANALYST: Good morning.

HEMMER: It seems a bit of a reversal. You go back to the early '60s, 44 years ago, and reflections of JFK. GREENFIELD: Yes, absolutely. When John Kennedy ran, the issue then, just as it was back in 1928, when Al Smith became the first Catholic to win a major party nomination, was whether the Catholic Church would exert improper influence on a Catholic president on matters of aid to parochial schools. In fact, one of the more dramatic moments of the 1960 campaign was when John Kennedy appeared before a group of Protestant ministers in Houston and spelled out his views.

Take a listen.

(BEGIN VIDEO CLIP)

JOHN F. KENNEDY, FMR. PRESIDENT OF THE UNITED STATES: I believe in an America where the separation of Church and state is absolute. Where no Catholic appellate would tell the president, should he be Catholic, how to act, and no Protestant minister would tell his parishioners for whom to vote.

(END VIDEO CLIP)

GREENFIELD: Now, today, by contrast, the issue is whether a pro- choice Catholic candidate, like John Kerry, is too unwilling to follow the Church's teaching. It's the same issue that confronted Geraldine Ferraro, who was Walter Mondale's 1984 running mate, the first Catholic on a national ticket after the Supreme Court had declared abortion a constitutional right.

So you're right. It's a flip.

HEMMER: A bit of a hypothetical here, but if the Church were to deny communion on a Sunday to John Kerry, a political fallout would be what?

GREENFIELD: Well, at first blush, it doesn't look like it would be that significant because, if surveys are right, American Catholics tend to mirror the general population's view on abortion. They do not favor abortion on demand, they do not want it outlawed either.

But, Bill, I think this debate should not obscure what I think is the more important political point. In general, Catholics are much less like to vote Democratic than they used to, but not because of abortion.

HEMMER: Really? So if abortion is not the issue, then what is?

GREENFIELD: Well, I think what's happened is this: for decades, Catholics voted reliably Democratic. They were concentrated in big cities, they were helped by Democratic machines, they tended to back the party, the Democratic Party's strong pro-labor stance.

It started around 1968. They began moving away from the party on matters of patriotism and values, a lot of resistance to the emerging counter culture, the increasing racial tension in schools, and jobs.

So if you look at 2000, Al Gore only beat Bush 50-47 among Catholic voters. And in background states, like Ohio and Pennsylvania and Michigan and Wisconsin, George W. Bush either came very close or beat Gore among Catholics. And right now, according to one survey, Kerry leads Bush by only 45-41 among Catholics. But, again, this is not specifically church-related issues that Kerry needs to worry about, but much broader issues about whether he can connect on personality and issues.

HEMMER: Very interesting. Reflections of 44 years ago, today in 2004. Thank you, Jeff. Good to see you.

GREENFIELD: You too.

HEMMER: All right.

Here's Soledad.

O'BRIEN: All right. Time to check in with Jack and the Question of the Day.

CAFFERTY: Thank you, ma'am.

The death of former football play Pat Tillman, killed in eastern Afghanistan last week, dominated news coverage over the weekend. He walked away from a multimillion-dollar pro football contract to join the Army following the attack on America September 11. Considering the way a lot of professional athletes behave these days, Tillamook's decision stood out.

Hundreds of others, though, have lost their lives without the same media coverage. So that is the question. Does the media coverage of Pat Tillamook's death in any way diminish the sacrifice of others?

Dee in Tampa, Florida, writes: "I think one aspect missing from the Tillman coverage is that Pat would have hated all the attention diverted from other casualties. I was bombarded with many reviews of his life and sacrifice but heard very little about Sergeant Elmer Krause this weekend, another soldier who had been missing and whose body was found."

Ken in Tampa, Florida, writes: "In this complex world, we often need symbols to help us understand events. Pat Tillman has become a symbol for all the rights and wrongs of our nation at war. His life symbolizes all our young heroes participating in the war in Iraq. His death symbolizes the horrible price we paid for an unnecessary war."

And Dan in Vista, California, writes: "Finally we have a dead millionaire in Afghanistan, and everybody wants to give him a medal. The same day that PFC Tillman was killed, there were five other young men killed in Iraq. As of today, I've never heard their names. For that matter, there's only been a few times that they had been mentioned at all."

O'BRIEN: Interesting points. I tell you, there is not one person who writes who I disagree with their perspective, although even though they're often completely contradictory. CAFFERTY: That's an interesting question, which, after all, that's why we're here.

O'BRIEN: That's right. Each and every day.

CAFFERTY: That be our job.

O'BRIEN: Yes, it is.

Coming up, a check on the latest from Iraq. Fierce fighting in Fallujah, despite a cease-fire which remains in place there.

And also, some strange legal maneuvers just days before Michael Jackson's arraignment. He dumped his lawyers. We'll tell you why. That's ahead on AMERICAN MORNING.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Now to the Kobe Bryant sexual assault case. The new pretrial hearing begins today in Colorado.

And Linda Fairstein is a former New York City sex crimes prosecutor. Also a best-selling author. She's working on her next book now. Her current book, though, is titled "The Kills." And she joins us to talk about what you can expect from this three-day court proceeding.

Let's first talk a little bit about the trial date. Both sides have now on the record said they want it to be fast. So if you had to guess, when is the trial going to begin?

LINDA FAIRSTEIN, FMR. SEX CRIMES PROSECUTOR: Well, fast in the criminal justice context has an entirely different meaning. And I don't think anybody really expects it to be before the fall or winter despite the language.

O'BRIEN: Really?

FAIRSTEIN: Right. There is still a lost of unfinished business. These hearings will create some new issues, the judge will have to rule on them. There is still, I believe, scientific evidence that has been exchanged, and we don't have all of the results. So I think it's unrealistic to expect a trial before September.

O'BRIEN: Does it really make an impact when the defense and the prosecution both say, listen, our client really wants a speedy trial? I mean, is it sort of like, yes, we'll do our best? But do they take it really into consideration or no?

FAIRSTEIN: Well, yes. I mean, I think everybody would like the trial to start and be over with. But it's not that the judge is holding them back from doing that.

There were -- there was scientific evidence sent out, the DNA analysis, as we know. That was a slow process in this case. It can be done much faster.

There are so many motions. The defense is -- they're good lawyers, as we've discussed before, and they're filling us up with a lot of new motions whenever something develops. I believe there are still at least 12 unresolved issues...

O'BRIEN: So a lot of work to do still.

FAIRSTEIN: A lot of -- yes.

O'BRIEN: In light of the judge saying no last week to the release of the medical records, what do you think the chances are that the accuser's sexual history will be allowed in court?

FAIRSTEIN: OK. Last week, we had the ruling that prohibits the defense from going into the prior psychiatric hospitalization and medical history directly, although there are still issues about whether witnesses who know about...

O'BRIEN: Could talk about it anyway?

FAIRSTEIN: Could talk about it. Now, this week are the rape shield law hearings. And I think that there are significant issues that the defense has raised.

For example, the prosecution is going to claim that there were injuries that this victim sustained internally. If that's true, and the defense can realistically prove that within hours of the alleged assault there might have been activity that -- during which the same injuries could have been sustained, they might have a shot at doing it.

So I think the judge is going to parse and get out some of the very irrelevant sexual history, things that happened months, weeks ago, that the defense may be alleging. But I think you're going to see at least perhaps two individuals, the bell man and the ex- boyfriend, who may be the subject of an inquiry.

O'BRIEN: At some point. Bryant in the middle of a tough playoff series. So I'm curious to know, do judges take that into consideration when they're dealing with a high profile person, whether that person is the defendant or that person is bringing the charges?

Would they say, you know, boy, it would be easier to schedule this just out of consideration? Or, no, whatever is going to happen is whatever is going to happen, and everybody's schedule is going to follow the judge's?

FAIRSTEIN: Well, I think whenever the world is watching a judge like this, he's going to say, no, we can't pay attention to the schedule, this comes first. And probably on a human level, everybody does pay a little bit of attention to the schedule. So I think the judge is under pressure not to let that get in the way of these hearings.

O'BRIEN: Linda Fairstein, nice to see you, as always. FAIRSTEIN: Thank you.

O'BRIEN: Thank you for joining us.

Bill?

HEMMER: Soledad, in a moment here, the Olsen twins growing up. The sister act getting a new image, too, we are told.

Plus the (UNINTELLIGIBLE) of the box office all part of "90- Second Pop" in a few minutes away from here.

Also, opening bell on a Monday right after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

HEMMER: Welcome back to AMERICAN MORNING; 9:30 here in New York.

In a moment, Michael Jackson has a new attorney. Mark Geragos, Benjamin Brafman are out. What happened to the shakeup? Who steps in? We'll talk to Jeff Toobin, who has been all over this story so far today.

O'BRIEN: Also this morning, another celebrity case moves closer to its conclusion, we think. Closing arguments are scheduled to begin today in the Jayson Williams trial. It has certainly been a long haul in this trial. We will see how much more time is actually likely.

HEMMER: So true.

O'BRIEN: Before any of that, though, let's get right to our top stories this morning.

U.S. Marines are clashing with Iraqi insurgents in Fallujah. At least 10 Marines wounded, four of them seriously, we are told. The violence comes despite a recent extension to the cease-fire there. U.S. Marines plan to start training Iraqi security forces to join them in patrolling that city.

Nearly 500 people have been quarantined in China in an effort to contain the SARS virus. Two confirmed cases, six suspected cases have been announced there over the past week. Authorities in China are worried that the disease might spread during the upcoming May Day national holiday. The newest outbreak is linked to people working in a SARS laboratory in Beijing.

And U.S. politics on the campaign trail. Jobs the focus this week. President Bush heads to Minnesota today, where he will promote job training programs. Democratic presidential candidate John Kerry is kicking off a four-state bus tour in Wheeling, West Virginia. Senator Kerry is asking voters there to hop on the jobs first express.

Hundreds of homes in southern California are being threatened by a blazing wildfire. Firefighters have been battling the flames since yesterday with some air support. The wildfires burned more than 2,000 acres, but no reports of any injuries at this time, fortunately.

(WEATHER REPORT)

HEMMER: Michael Jackson's lead attorneys, Mark Geragos and Benjamin Brafman, two well known members of the legal community, now stepping down from the defense of the pop star. The move comes just days after Jackson was indicted by a grand jury and only days before his arraignment in Santa Barbara.

Our legal analyst, Jeffrey Toobin, back with us to talk about this.

Good morning to you.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Howdy.

HEMMER: What was the rub here in California?

TOOBIN: Well, I think a lot of it had to do with publicity, Michael Jackson's entourage, which is how a case like this is run. You don't just have a client; you have the client's entourage. It was very upset that on cable TV, the current defense team, Geragos and Brafman, weren't responding to every charge, weren't getting involved in every controversy.

Geragos and Brafman said, look, we don't think we should justify every little attack with the response. Plus, we're under a gag order. And that conflict, Bill -- and ultimately there was a parting of the ways.

HEMMER: So your defense sources are telling you that Michael Jackson's team was worried about the news cycle that surrounded this story and some cases on a daily basis?

TOOBIN: Principally, Randy and Jermaine Jackson, two of the Jackson Five who are now very much involved in Michael Jackson's defense. They were intensely interested in the give and take on cable TV, where as Brafman and Geragos were saying, look, let's do the job in the courtroom. That's the only thing that matters.

HEMMER: I know you spoke with some sources on the defense team. Brafman and Geragos, are they upset about this?

TOOBIN: I think philosophical is word. Yes, any lawyer would love the challenge of a case like this, one that they particularly regard as winnable. But, you know, these are strong egos, they control their own cases. And if they felt that they couldn't try the case the way they wanted to, it wasn't worth staying in.

HEMMER: I know you speak a lot, highly of Benjamin Brafman.

TOOBIN: I certainly do.

HEMMER: Thomas Mesereau is the guy who's stepping in. What do you know? TOOBIN: I have not personally seen him in action. But people I know, and by reputation, he is has an excellent reputation. He's done a lot of work, a lot of pro bono work.

He was on and off the Robert Blake case, which is how most people in the public know him. But he's a serious player. And in this respect, at least in getting rid of Geragos and Brafman, who are highly regarded, they went for someone else who has a good reputation.

HEMMER: All right. Thanks, Jeff. We'll talk Michael Jackson today. Tomorrow, we'll talk Jayson Williams.

TOOBIN: If there is a verdict. That case has been dragging on for months.

HEMMER: Well, listen, we're going to get to it right now. Jeff, thanks for that.

TOOBIN: OK.

HEMMER: The Jayson Williams matter could go to the jury as early as tomorrow, we're told. Closing arguments in the trial set to begin today. In fact, about 25 minutes from now in Somerville, New Jersey.

Deborah Feyerick is watching that trial for us.

Good morning, Deb.

DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Bill.

Well, today, both sides will try to weave all of their elements together, the eyewitnesses, the evidence, the gun testimony. Jayson Williams' legal team trying to drive home to the jury that this was not aggravated or reckless manslaughter, as prosecution has spent the last three months trying to prove.

(BEGIN VIDEOTAPE)

FEYERICK (voice-over): Was it an accident or not? For Jayson Williams, the jury's answer is everything. The judge set to tell the jurors...

JUDGE EDWARD COLEMAN, N.J. SUPERIOR COURT: The state has only proven that the death of Mr. Christophi was only an accident, then you must find him not guilty.

FEYERICK: The shooting of all the limo driver happened two years, ago inside the master bedroom of Williams' 80-room mansion. Four friends who had been out with Williams that night were given immunity to testify against him. Harlem Globe Trotter Paul Gaffney describing the chaotic aftermath.

PAUL GAFFNEY, HARLEM GLOBE TROTTER: Jayson was like, "Are you OK? Are you OK? Please tell me you're OK."

FEYERICK: Another Globe Trotter, Benoit Benjamin, testified he was close enough to see Williams with his finger inside the trigger loop. But a defense expert says wood chips inside the firing mechanism could have caused the shotgun to misfire.

RICHARD ERNEST, DEFENSE EXPERT: It's my opinion that this shotgun was basically an accident waiting to happen.

FEYERICK: One friend who cut a deal with prosecutors described how Williams wiped fingerprints from the shotgun, moving it to look like the driver had killed himself. The judge will tell the jury they can consider the defense argument Williams panicked and didn't realize a cover-up was criminal.

Closing arguments should have taken place three weeks ago. The trial almost derailed when prosecutors discovered they failed to tell Williams' legal team an engineer from the gun company had taken the shotgun apart.

Williams was allowed to reopen his case. That's when the judge threw out tests by the state's chief gun expert who found he could not get the gun to misfire. Williams did not testify, telling the judge...

JAYSON WILLIAMS, DEFENDANT: I put my trust in god, and I have great confidence in this jury.

(END VIDEOTAPE)

FEYERICK: There are eight charges against Jayson Williams. The most serious, aggravated manslaughter. It carries a maximum of 30 years in prison -- Bill.

HEMMER: Deb Feyerick, thanks. Watching that trial for us in New Jersey.

Soledad?

O'BRIEN: Well, millions of Americans are joining the low-carb diet craze. And there's a glut of new products on the stores' shelves to feed the low-carb nation. The trend is TIME Magazine's cover story this week, and Dr. Sanjay Gupta joins us from the CNN Center to talk a little bit more about it.

Good morning to you, Sanjay.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, Soledad.

Yes, this is becoming a very big deal. Obviously, lots of people hearing about the low-carb, high-protein diets. We talked about good carbs and bad carbs, all that sort of stuff. But a new poll now from Opinion Dynamics trying to put context into this, how many people using these diets.

Now, take a look at the numbers. Really pretty high, I thought. Seventy million people now on some sort of carb-limiting diet. Some of them freelance carb limiters, some of them -- 26 million of them hard-core low-carb people. They eat little or no carbs on a daily basis. Pretty remarkable, Soledad.

There's also -- another number I thought interesting, 1,558 new products out there over the last two years that are specifically low or no-carb products. You can get everything from beer to cake to ice cream to even spaghetti, really usually considered a very carb-laden food.

There's also a lot of reading to be done on this. One hundred and forty books on low-carb or no-carb diets out there. Expect another 51 this year, Soledad.

Remember the low fat craze years ago? Well, the low-carb craze is certainly here. We're going to hear about it more and more -- Soledad.

O'BRIEN: Sanjay, a question for you. When you talk about the impact on the body, of course the whole idea behind carbs, I guess, is the insulin levels and what makes you really keep on weight and things like that. I guess the question would be, is there a conclusion about whether this is safe or not?

GUPTA: Well, it's a very interesting question. I mean, all of the dietitians that we talked to, all of the nutritionists, when we say, what should the average person do? They say the average person should eat a balanced diet and exercise. What this is, is a quick fix, or at least an attempt at it.

Now, the question about whether or not it's safe is a good one. Something that's been studied at least short term. Some of those studies coming out of North Carolina, talking about the fact that while you would expect cholesterol levels and saturated fat levels to go up, at least in the six-month trials, people on low-carb diets, high-protein diets, high-fat diets, did not have that problem so much. But there's still the concerns over kidney problems, osteoporosis, and liver problems with the high-protein diets. And there is concern about strokes with the high saturated fat diet.

So bottom line, Soledad, it's a complicated question, because a lot of people, they want this quick fix and they want to believe it's safe. If you are going to go on a low carbohydrate diet, make sure to get your vitamins and nutrients. Take your fish oil supplements, which are recommended, and your multi dose vitamin as well -- Soledad.

O'BRIEN: All right. Sanjay Gupta with some great advice for us this morning.

Have you ever done one of those low carb diets?

HEMMER: I sure have.

O'BRIEN: Really? Did it work for you?

HEMMER: Yes. O'BRIEN: Really?

HEMMER: Yes.

O'BRIEN: How much weight did you lose?

HEMMER: You lose -- I think I lost maybe five pounds.

O'BRIEN: Did you gain it all back?

HEMMER: No. I stick to it.

O'BRIEN: Really? For how long?

HEMMER: I tell you what, you feel so much better because you never feel bloated or full.

O'BRIEN: Because you lost five pounds or because of what you're eating?

HEMMER: No, because of what you're eating. If you take away the starches and the carbs and the bread, it doesn't occupy the space in your tummy.

O'BRIEN: Let's not talk about space in the tummy, mister. You have no idea.

HEMMER: That's right.

In a moment here, attention Kmart shoppers. Finally some good news for Martha Stewart. Andy Serwer tells you about that in a moment here.

O'BRIEN: And "Piano Man" Billy Joel, he's one of the world's best singers, song writers. But he might want to work on his driving. Our "90-Second Pop" panel takes a look at that.

That's ahead as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

O'BRIEN: Good morning. Welcome, everybody. It's time now for another all new episode of "90-Second Pop." The gang's all with us this morning.

Andy Borowitz, the author of "Governor Arnold," New York Magazine contributing editor Sarah Bernard; and Toure, contributing editor for Rolling Stone, good morning to all of you. We have so much to get through. Let's just get going.

Sarah, you're going to start for me. Billy Joel, third time in recent history.

SARAH BERNARD, NEW YORK MAGAZINE: I know. Another car accident for Billy Joel.

O'BRIEN: And this is an odd one because he ran into a house.

BERNARD: He did. This was actually not in the Hamptons. It was in Mid Island.

And what happened was, apparently, he was not drinking this time. He just literally lost control of his 1967 Citron, which I have to say, I mean, does that even have seat belts? That is not a car that you should be driving.

O'BRIEN: But they also, by the same token, won't do a lot of damage when they hit a house.

BERNARD: That's right. They sort of bounce right off the house.

TOURE, ROLLING STONE: (UNINTELLIGIBLE) just to Billy.

O'BRIEN: Is he fine now?

BERNARD: He wasn't hurt. He was just shaken up about it. And then, of course, it made all the news because he's been -- this is pattern for Billy.

ANDY BOROWITZ, HUMORIST: But you know the good new for Billy Joel? He just got a great rate on his car insurance by Geico. So that's good news.

(CROSSTALK)

BERNARD: And this time, actually, his daughter was not in the car, which was one of the concerns of Christie Brinkley...

O'BRIEN: Right -- the last time.

BERNARD: Because they kept fighting about it because she was worried that something was going to happen to Alexa.

O'BRIEN: Yes, he has what I would call a non-stellar driving record. Certainly over the last...

BOROWITZ: Maybe he should stay in his house and let people drive (UNINTELLIGIBLE). That's what I would do.

O'BRIEN: The Olsen twins -- which they hate to be called the Olsen twins. I mean, literally, publicists are like, "Do not call them the Olsen twins." So they're Mary-Kate...

BOROWITZ: Well, you've done it three times.

O'BRIEN: I know. Only because -- well, they are the Olsen twins.

BOROWITZ: Right, Mary-Kate and Ashley.

O'BRIEN: Mary-Kate and Ashley are trying to re-launch.

BOROWITZ: Right. Well, they are -- you know, I was shocked. They're turning 18, which just shocked me, because they've been around so long. I thought they were like 40. I was just amazed.

O'BRIEN: They were the little babies on "Full House."

BOROWITZ: They've been with us forever.

TOURE: Now they're so rich they could buy and sell John Stamos.

BOROWITZ: That is true.

BERNARD: That's right. But if you Google their 18th birthday, Mary-Kate and Ashley, something like 3,000 Web sites come up, counting down to the exact second.

O'BRIEN: That's odd. That's just weird.

(CROSSTALK)

BOROWITZ: Well, if you're a reader of "Teen People," as I am, you'll find the Olsen twins are actually the most powerful people on the universe. So we should be concerned about their every move.

And this is actually a big deal, because they're now talking about how do they grow up. Because they're 18, how do they change their image.

The only piece of advice I would give them is, just don't listen to the Bush twins. They're not a source of good advice on this topic.

O'BRIEN: Not necessarily.

Let's talk about the weekend box office. Who is going to tackle that?

BERNARD: Well, it's really been a tie.

O'BRIEN: "Thirteen Going on Thirty."

BERNARD: And "Man on Fire."

O'BRIEN: That seems like a cute movie.

BERNARD: It is a very cute movie. Jennifer Garner, everyone is comparing her to Julia Roberts now.

TOURE: Didn't they steal the script from "Big" and put it to a woman?

O'BRIEN: Welcome to Hollywood.

(CROSSTALK)

O'BRIEN: And what did "Big" steal the script from? Something else, I'm sure. Everything's a remake. Please, Toure.

BERNARD: But apparently guys like her and girls like her, which is a hard combination, because usually you get one or the other. And then you have the complete other side of the spectrum, "Man on Fire," which is one of those revenge stories again.

BOROWITZ: Which one was Billy Joel on his way to see?

BERNARD: "Man on Fire."

BOROWITZ: OK. That would have changed things.

O'BRIEN: You guys crack me up. Well, we ran through a lot today. Good job. Andy and Sarah and Toure, thank you so much.

Bill, back to you.

HEMMER: All right, Soledad.

In a moment here, it's not all bad news these days for Martha Stewart. Andy explains that in a moment here on AMERICAN MORNING.

Back after this.

(COMMERCIAL BREAK)

O'BRIEN: We've got this just in to CNN this morning: we've got word that two U.S. soldiers have been killed today, five more injured in that blast that we've been telling you about all morning in Baghdad. Apparently, that blast taking place in a chemical storage facility.

The explosion leveled parts of a building as the U.S. troops were searching it for some suspicious chemicals, and that apparently is when the two U.S. soldiers were killed. The remainder were injured. So a total seven casualties to report: two dead, five injured there.

And it really goes with what we've been talking about all morning outside of Fallujah and Najaf as well. And now in Baghdad, too. Just exactly how do you manage what is a tenuous situation in keeping the peace and not killing civilians, keeping U.S. soldiers alive and allowing them to do the job that they've been sent to do and getting the insurgents out of these areas? Very, very difficult.

HEMMER: Extremely. And this will be Topic A again tomorrow, because Tuesday initially was the deadline yesterday, and where the insurgents were told they had to turn in their heavy weapons or else there would be hell to pay essentially by the U.S Marines.

So that story's out of Baghdad now. More a bit later here.

On other news back here in the U.S., though, Lance Armstrong losing his main sponsor in the Tour de France. And Kmart and Martha Stewart will keep their relationship alive.

For that and a check of the markets, Andy Serwer back with us, "Minding Your Business" today. First to the markets, I guess.

Good morning.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Let's do that. And, you know, the market keeps a close eye on that news overseas as well. So far, shaking it off.

The Dow up 24 points here, Nasdaq up as well. One stock moving to the upside this morning is Boeing. It got a new order for its 7E7 aircraft. That's the first new airplane that's put out in 10 years from a Japanese airliner. A $6 billion order. That stock is moving.

Another stock moving is Martha Stewart Omnimedia. It's up about 30 cents, to $10 and change. That on the news that Martha and Kmart have made nice, apparently.

You may remember they had this business relationship. Kmart sued Martha Stewart. Now apparently it's just crossing the tape about an hour ago they have laid aside their differences and extended their deal.

Very important for Martha Stewart. They've extended the deal two more years to 2009. They're also going to be selling new products from Martha Stewart, including furniture, which has been going very well, and, of course, dropping a lawsuit between the two companies. So that's a good thing.

HEMMER: And if she loses her appeal, they will have this relationship going while she is essentially behind bars.

SERWER: Yes. It could be that Kmart sees the worst being over. Of course, Kmart has its own problems, though.

HEMMER: Tour de Lance continues.

SERWER: Yes. This is kind of an interesting story. Lance Armstrong just won the Tour de Georgia over the weekend. Good for him. But some bad news.

The U.S. Post Office, which had sponsored his team, will now be dropping the sponsorship at the end of 2004. In July, Lance goes for his record sixth Tour de France, which is the only one he really cares about. After that, it's over. Apparently, the Post Office...

(CROSSTALK)

HEMMER: So he wins five in a row, what have you done for me lately, huh? Not good enough for the...

SERWER: Yes. Well, (UNINTELLIGIBLE) about how much they spent and whether it was really worth all the money...

HEMMER: Thank you, Andy.

SERWER: OK.

HEMMER: Coming up next hour on CNN, a number of new details coming out of Iraq in the past few minutes. The situation of Fallujah is ongoing.

Also, what Soledad just talked about, this chemical explosion in Baghdad from a few hours ago.

Daryn has all of that next hour. We're back in a moment on AMERICAN MORNING after this.

(COMMERCIAL BREAK)

HEMMER: We've got to run. Hope to see you tomorrow on Tuesday for Jack and Andy and Soledad. And we'll see you then, OK? First thing tomorrow morning.

Daryn, back to you now at the CNN Center to pick it up from here.

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