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American Morning
Recapping Opening Statements by Prosecution in Double Murder Trial of Scott Peterson; 'Fear Factor' of Terrorist Attacks in Rise of Oil Prices
Aired June 02, 2004 - 08:00 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 defense gets ready to set the stage in the Scott Peterson murder trial. Is there an explanation for what prosecutors call a web of lies?
A new weapon for terrorists -- the price of oil. Americans feeling it every time they go to the pump.
And lighting up the sky in Florida -- going after the fires in Alligator Alley.
All ahead here on AMERICAN MORNING.
ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
HEMMER: Welcome, everybody.
Eight o'clock here in New York.
Heidi working for Soledad today.
How are you doing?
HEIDI COLLINS, CNN ANCHOR: I'm doing well, thanks.
HEMMER: Oh, yes?
COLLINS: I wore yellow so we'd all stay awake.
HEMMER: Nice.
COLLINS: You can't miss it, can you?
HEMMER: And we are.
Some other stories this hour.
In a few hours time, day two of the Scott Peterson double murder trial. It will feature the attorney Mark Geragos and his opening statements for the defense. A rather dramatic day yesterday in court. A full report on what folks saw out there in northern California in a moment. COLLINS: Also, how will the role of the U.S. military change, if any, now that Iraq's new leaders are assuming their duties? We're going to talk about the practical effects of sovereignty on the military with Retired General Don Shepperd.
HEMMER: Also, Sanjay's back with us again today looking at a problem that comes along with a number of prescription drugs. We'll look at which medicines can cause you to add the pounds and what you can do about them. We'll get to that in a moment here.
COLLINS: We always show those shots, don't we?
JACK CAFFERTY, CNN CORRESPONDENT: We shouldn't have to look at that this time of the morning, you know what I'm saying?
HEMMER: How you doing?
COLLINS: Hi, Jack.
CAFFERTY: How you doing?
Coming up in the Cafferty File, we'll tell you about a hairpiece that stopped a roller coaster in its tracks. And the most unlikely personality you could ever imagine seeing on MTV. Coming up shortly.
COLLINS: Excellent tease.
CAFFERTY: Yes.
COLLINS: You're good.
CAFFERTY: Thank you.
HEMMER: Toast with butter, right?
CAFFERTY: What?
HEMMER: Toast with butter.
CAFFERTY: What are you talking about?
HEMMER: You know what I'm talking about.
CAFFERTY: Toast with butter? No, I don't. I'm lost.
HEMMER: Let's get to our top stories this morning.
CAFFERTY: What does he mean?
HEMMER: The defense today...
CAFFERTY: Can you translate?
COLLINS: (UNINTELLIGIBLE).
HEMMER: ... makes its opening statement today in the double murder trial of Scott Peterson. The prosecutor yesterday laying out the state's case that Peterson killed his wife Laci and their unborn child back on Christmas Eve 2002.
Ted Rowlands live in Redwood City, California watching it there -- Ted, good morning.
TED ROWLANDS, CNN CORRESPONDENT: Good morning, Bill.
After a day of listening to incriminating audiotapes and other evidence geared at Scott Peterson, this jury will listen to Mark Geragos, as he tries to convince them that somebody else is responsible for Laci Peterson's murder.
(BEGIN VIDEOTAPE)
ROWLANDS (voice-over): The case against Scott Peterson is centered on lies and according to Prosecutor Rick Distaso, common sense. In opening statements, Distaso methodically stacked bits of circumstantial evidence against Peterson, trying to show that "Scott Peterson is the only logical person that could be responsible for the murder of his wife and unborn son."
Distaso told the jury about how Peterson lied consistently to investigators, his family and friends, and the media in the days and months after his wife's disappearance.
Peterson looked away when Distaso showed the jury photos of he and girlfriend Amber Frey at a Christmas formal, the same night Laci attended a different Christmas party alone, where this picture was taken of her sitting in a chair. At one point, Distaso played a five minute portion of an audiotape of Peterson talking to Frey on December 31, the same day hundreds of people attended a vigil for Laci in Modesto. Peterson, who claimed he was in Brussels on international business, says to Frey at one point, "You know you're so beautiful and our relationship will grow."
In another tape, Peterson is heard talking to his friend, who works in real estate, about selling the family house -- finished. Peterson tells his friend he'd like to keep the sale private and would like to put the house on the market right away because, he said, "I can't have Laci coming home to that house."
Laci's family fought back tears when Distaso showed graphic photos of both Laci and the baby's remains.
(END VIDEOTAPE)
ROWLANDS: And Geragos will begin his opening statements at 9:00 Pacific Time. When court convenes. He'll have all day. The prosecution used the entire day yesterday. He can go as long as he wants. If he doesn't use the entire day for his opening statements, then the prosecution will begin its case, calling its first witness, the Petersons' maid -- Bill.
HEMMER: And a day of drama yesterday.
Ted, thanks, there in northern California -- Heidi.
COLLINS: Oil prices hit an all time record high, with crude oil topping $42 a barrel. Yesterday was the first day of trading since violence aimed at oil company executives in Saudi Arabia killed 22 people.
And as Tom Forman reports, a fear factor is helping fuel the latest rise.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): The attack in Saudi Arabia sent a shockwave through world oil markets and when U.S. traders hit the floor after the long weekend, the impact was immediate. Oil prices jumped almost $2.50 per barrel since last Friday, a new high.
At Harvard University, Professor of International Relations Joseph Nye calls it the risk factor kicking in.
JOSEPH NYE, AUTHOR, "SOFT POWER": Indeed, some people feel about a quarter of the price of a barrel of oil is not determined by supply and demand, but by fears for the future.
FOREMAN: Fear is clearly the driving force behind the price jump. The Saudi attack did not keep a single drop of oil off the market. Still, in a statement purportedly from al Qaeda, the group claims it will continue to hit American companies that are specialized in oil and steal the wealth of Muslims.
Operations in Saudi Arabia are prime targets, because the Saudis control a quarter of the world's oil reserves. No wonder Secretary of State Colin Powell is encouraging Saudi efforts to fight terrorism.
COLIN POWELL, SECRETARY OF STATE: They know that this kind of terrorist activity cannot be in any way found to be something that is tolerable. And I expect them to use all the resources at their disposal to go after them, just as every other civilized nation should.
FOREMAN: It is possible the consequence of attacking the oil trade could be worse for the terrorists than it is for the world. At least at the Chicago trading firm layoff Alaron, analyst Phil Flynn thinks so.
PHIL FLYNN, COMMODITY ANALYST: I think al Qaeda has made a mistake, a tactical mistake, by attacking the Saudi oil industry, because, in effect, an attack on Saudi Arabia is an attack on the entire OPEC cartel.
FOREMAN (on camera): If OPEC leaders see it that way when they meet later this week, al Qaeda may find the largest and wealthiest Islamic nations getting a lot more serious about hunting terrorists down.
Tom Forman, CNN, Washington. (END VIDEOTAPE)
COLLINS: OPEC ministers meet tomorrow in Beirut and are expected to boost oil supplies -- Bill.
HEMMER: Heidi, just as he has for the past two years, terror suspect Jose Padilla waking up today in federal custody. The 33-year- old Brooklyn born former gang member has been declared an enemy combatant who worked with al Qaeda. But he's never been formally charged and yesterday the government released some details about Padilla's alleged activities.
(BEGIN VIDEO CLIP)
JAMES COMEY, DEPUTY ATTORNEY GENERAL: On May the 8th of 2002, a soldier of our enemy, a trained, funded and equipped terrorist, stepped off that plane at Chicago's O'Hare. A highly trained al Qaeda soldier who had accepted an assignment to kill hundreds of innocent men, women and children by destroying apartment buildings.
(END VIDEO CLIP)
HEMMER: Very strong statements out of Washington yesterday.
Also, the government saying Padilla would destroy those buildings by using natural gas. Also repeating the claim that Padilla plotted to detonate a radioactive dirty bomb somewhere here in the U.S.
One of Padilla's attorneys, Donna Newman, our guest here now on AMERICAN MORNING.
Good morning to you.
DONNA NEWMAN, ATTORNEY FOR JOSE PADILLA: Good morning.
HEMMER: You've met with Padilla how many times?
NEWMAN: Twice since he's been declared an enemy combatant.
HEMMER: Twice.
And did your discussions talk in any way of what he told interrogators since he's been taken into custody?
NEWMAN: We have not been allowed to discuss that with Mr. Padilla and whatever Mr. Padilla has said to us is classified, which is kind of ironic, since Mr. Comey got on the airwaves and had this large announcement.
But we, however, our lips, they made sure, are zipped.
HEMMER: Well, here's what the government's saying. They allege Padilla is an al Qaeda terrorist, he had ties to Khalid Shaikh Mohammed, also trained in Afghanistan.
What can you share with us about those allegations? NEWMAN: Well, as I just said, they are -- whatever information I have is classified and I cannot reveal that. But more important, these are terrible allegations. Doesn't that sound like an indictment to you and to the rest of the nation? And if that sounds like an indictment, then this belongs in court. And that's what we've said from day one.
HEMMER: Yesterday you had said that he has also denied a number of things.
NEWMAN: Well...
HEMMER: What things has he denied? Can you tell us that?
NEWMAN: Well, yes. In the summary that they sent to the Senate, the government had a footnote which Mr. Comey, of course, omitted from his discussions. And in that footnote it says that Mr. Padilla has denied many of these allegations.
So the fact of the matter is where we belong is in court. Mr. Comey's statement was nothing more than an opening statement to a trial that they have not allowed to proceed. They are trying my client in the court of public opinion, without allowing him an opportunity to give his side of the story. That's not what we are about.
HEMMER: Now, the government is saying, though, had they given him a right to a lawyer early on, he would have likely chosen his right to remain silent and possibly even been released.
Your reaction to that?
NEWMAN: Well, I don't think -- I mean based on the history of terrorist cases, that's a very farfetched statement, that he would be released. On the other hand, the government has consistently said that they have held Mr. Padilla for information he gives about other people. But yesterday they changed their whole story and now they say what they're holding Mr. Padilla for is information he gives about himself, which they knew previously.
HEMMER: What, then, is the motivation, do you believe, for the U.S. government to hold him? If everything you're saying is, indeed, true, why hold him? Why keep him?
NEWMAN: Isn't it easier just to avoid the court system? Why, with all that paperwork, with judges, what a pain we have in our system. So simple just to say we say he's guilty, therefore he's guilty.
HEMMER: You have a Supreme Court ruling. I think in about three weeks it's expected.
What do you believe was the motivation to release this information publicly yesterday?
NEWMAN: I won't speculate about what the government does. I think it speaks for itself. I'll let the public draw its own conclusions about the timing of this, as well as the timing of their other releases.
HEMMER: When will you meet with Jose Padilla again?
NEWMAN: Shortly. We hope as soon as the Supreme Court gives a decision.
HEMMER: Shortly means July?
NEWMAN: Sure.
HEMMER: Shortly means?
NEWMAN: July certainly.
HEMMER: Donna Newman, thanks for your time this morning.
NEWMAN: Thank you.
HEMMER: All right -- Heidi.
COLLINS: Twelve minutes past the hour now.
Here's what's happening in other news this morning.
Two members of the U.S. military coming under fire in the Saudi capital of Riyadh today. But according to Pentagon and U.S. Embassy officials, there were -- they were not injured.
In a separate incident, though, Saudi security forces killed two militants in the western city of Taif. But the militants are not believed linked to the attacks in Khobar over the weekend.
Israeli forces launching a new incursion in a refugee camp in Gaza. Dozens of Israeli tanks and bulldozers rode into the area where thousands of Palestinians lost their homes last month. The Israeli Army says it is looking for tunnels used for smuggling weapons into Gaza from Egypt.
The FBI issuing a nationwide alert now for two stolen tanker trucks from San Antonio, Texas. The vehicles were filled with thousands of gallons of liquid propane. Meanwhile, another company has reported 15 missing gas cylinders. Authorities say there is no sign of a terrorist link in the crimes, but they want to eliminate that potential threat.
And Interstate 75 in the Florida Everglades is open again this morning. It was closed last night after this -- thick black smoke from wildfires cut visibility to zero. Flames along the highway, known as Alligator Alley, finally died down when gusting winds pushed the fire away from the road. Firefighters and state troopers are keeping an eye on the 3,000 acre blaze, though, as you would imagine.
And filmmaker Michael Moore's documentary "Fahrenheit 911" now has a distributor for the U.S. and will be in theaters on June 25. Moore's movie is critical of President Bush's handling of the 9/11 attacks. It will now be distributed by a partnership of Lion's Gate Films. The movie recently won top prize at the Cannes Film Festival in France. The Weinsteins, who run Miramax Films, bought the rights to the movie from Walt Disney Company, which had refused to distribute the film.
HEMMER: About 15 minutes past the hour.
Back to Jack.
An intriguing Question of the Day.
Good information here, huh?
CAFFERTY: Great stuff thanks to our colleagues over there at CBS, the Evening News. They released these tapes that could spell very bad news for Enron. Traders are heard on the tapes gloating about their role in the Western power crisis of a few years ago, apparently confirming that they deliberately drove up prices.
Here on the tape a trader rejects about a forest fire that shut down a big transmission line coming into California.
(BEGIN AUDIO CLIP)
UNIDENTIFIED MALE: Burn, baby, burn. That's a beautiful thing.
(END AUDIO CLIP)
CAFFERTY: Others are congratulating each other on cashing in on the crisis.
(BEGIN AUDIO CLIP)
UNIDENTIFIED MALE: They're f_____g taking all the money back from you guys? All the money you guys stole from those poor grandmothers in California?
UNIDENTIFIED MALE: Yes, Grandma Millie, man.
UNIDENTIFIED MALE: Yes. Now she wants her f_____g money back for all the power you've charged right up, jammed right up her a______ for f_____g $250 a megawatt hour.
(END AUDIO CLIP)
CAFFERTY: Aren't they beauties?
The tapes also appear to link top Enron officials Ken Lay and Jeff Skilling to schemes that started the whole crisis.
The question we're asking is this -- how damaging are these new Enron tapes?
Pretty much, I would say. Diana in Renick, West Virginia writes: "It's no mystery, Jack, why Ken Lay is still walking around free. Kennie boy is one of Mr. Bush's best buds. If anything, Bush is loyal to a huge fault. Lay won't be indicted until Mr. Bush is out of office. Even if somehow he is, Mr. Bush will be certain to make him one of the pardons as he leaves the White House. All those energy executives stick together like gummy overdone rice."
Gary in Hamilton, Ontario: "The behavior of Enron traders, as revealed in the tapes, is what we've come to expect from lawyers, MBAs and others who seem to be trained to maximize their returns at any price, even if it means lying and cheating. We must ask ourselves what kind of education these so-called professionals were receiving in their high priced schools."
Sandy in Chicago: "Traders in Chicago, Jack, want to know when Ken Lay is going to be brought to justice. He's given us honest, hard working people a very bad name. That's if anybody can find him."
And Doug weighs in from Stoney Creek, Ontario with this: "Jack, now I know what we can do with Abu Ghraib Prison. It's a perfect spot for these jackals. Maybe Grandma Millie would volunteer to work there as a guard."
HEMMER: And Sandy coming to the defense of traders. Very interesting, out of Chicago.
CAFFERTY: Yes. Well, and, yes, we heard, I guess there's a bunch of them out there that watch the program.
HEMMER: You got it.
How was your croquet game over the weekend, by the way?
(CROSSTALK)
CAFFERTY: It was like toast with butter. That's not -- let me do some translating quickly for Bill. At the top of the seven o'clock hour on the Scott Peterson case I said Peterson's toast.
HEMMER: Yes.
CAFFERTY: An hour later he goes toast with butter and it took me a while to get it.
The croquet thing is a reference to something we said yesterday about how I spent the Memorial Day holiday...
COLLINS: We're looking for regular viewers.
CAFFERTY: Yes.
HEMMER: I'm just trying to keep you on your toes, my man.
CAFFERTY: So if you want to keep up with this program, I suggest you watch every single moment of every day. HEMMER: Every single minute.
CAFFERTY: Because even I get lost sometimes.
HEMMER: You know, that's best advice you've given all day.
Thank you, Jack.
CAFFERTY: Yes.
HEMMER: Nice to see you.
CAFFERTY: All right.
HEMMER: All right.
COLLINS: We want to go ahead and check on the weather now.
(WEATHER REPORT)
COLLINS: And we're going to keep it in Georgia now. A one of a kind accident, in fact, in that state. A huge crane topples over in a busy suburban neighborhood. Look at this. When the dust settles, one house is literally sliced in half. The crane was being used to remove a dead tree from the back yard. But the homeowner was inside when suddenly the crane's arm cut right through the three story home.
(BEGIN VIDEO CLIP) BEVERLY WOLFE, HOMEOWNER: I was sitting there eating my dinner at the table in the kitchen and I heard this crash and just kind of got up and walked away and thought maybe I should start running out of here. And the crane just came right through the house.
(END VIDEO CLIP)
COLLINS: Well, as you saw there, luckily, Ms. Wolfe walked out without a scratch. Without her lunch. Did she say she was eating lunch?
HEMMER: Well, she was running.
COLLINS: But no scratches.
HEMMER: I thought we did hear that.
COLLINS: Yes. Wow.
HEMMER: Well, you try to get the dead trees out of the way so they don't come crashing down on your house and you get a crane instead.
COLLINS: You get the crane, right. You got it.
HEMMER: It doesn't seem like the trade-off there is even.
In a moment here, if you're having trouble losing weight, maybe it's your medicine. Sanjay has an intriguing story for us today. We'll get to that in a moment.
COLLINS: Also ahead, a new government gets set to take the reigns in Iraq. What does it mean for U.S. troops? We'll be talking about that coming up on AMERICAN MORNING.
(COMMERCIAL BREAK)
COLLINS: President Bush says he expects the violence in Iraq to continue up to and past the day that Iraqis are given sovereignty of their country. So, what does that mean to the thousands of U.S. troops in Iraq, especially now that a new interim government is transitioning into power?
Earlier on AMERICAN MORNING, coalition spokesman Dan Senor spoke to the question.
(BEGIN VIDEO CLIP)
DAN SENOR, SENIOR CPA ADVISER: There is a major terrorist threat in Iraq and the Iraqi security forces right now, and immediately after June 30, will not be in a position to handle the threat on their own. And they're going to need the continued support of the U.S. and the multinational force. It's quite logical.
(END VIDEO CLIP)
COLLINS: Retired Major General Don Shepperd is joining us from Hartford, Connecticut this morning to talk about all of this.
General, good morning to you.
Thanks for being with us.
I want to ask you about, obviously the new interim government was put into place just yesterday.
What does this mean to U.S. forces on the ground, in the air and all around, if anything? Does their role change?
MAJ. GEN. DON SHEPPERD (RET.), U.S. AIR FORCE, CNN MILITARY ANALYST: It's still unclear. The role of the U.S. forces for the immediate future won't change, Heidi. They're going to be there to protect themselves, provide security of places where they are asked and told to do so by the American chain of command.
What has to be negotiated, however, with the new interim government, and then finally the transitional government in January of next year, is the status of forces agreement. In other words, what the American forces are allowed to do, where they're allowed to do it, what rules apply and then, of course, when we eventually leave.
So the soldier himself won't see much change in what he's doing right now. But behind-the-scenes, there's going to be a lot going on with the new Iraqi leaders.
COLLINS: Well, we heard Dan Senor just a moment ago talking a little bit about this, as well.
Do you think that the forces will be able to do both, that being continuing with their combat operations and then also protecting this new interim government?
SHEPPERD: Well, a lot of effort is going to go into protecting the new interim government and the ministers and what have you, because clearly the former regime loyalists, people that do not want to see a new Iraqi government, a democratically elected government, are going to wage mischief all across the country. There's going to be increased terrorist attacks, not only during the period after the 30th of June, but even after the transitional government takes place, the transition to the new government takes place in January of 2005.
There probably will be attacks all along against the new government and trying to keep order from being established in the interests of taking over power again for interest groups within Iraq itself.
COLLINS: General Shepperd, it seems a lot like the onus has been on the United States and coalition, if you will, to protect the Iraqis.
When will the Iraqis step up and start protecting and working to protect themselves?
SHEPPERD: Well, they're doing it now in many areas. But the process of training and establishing a new army, training, establishing and equipping a police force that can really provide security in the various areas is a slow process, Heidi. It takes a long time to do that and to do it properly.
Clearly the new interim government and then the transitional government will have authority over the emerging Iraqi forces. And you'll see a slow handoff from U.S. forces in the cities to the Iraqi forces being established, and then a slow backing away out of the cities and eventually a withdrawal from the country. That seems to be what's going to take place.
COLLINS: All right, quickly, let's look south a little bit, if we could, General Shepperd, to Najaf and Kufa. The cease-fire there pretty shaky. It seems to be crumbling, in fact. By the way you see things, you think that it's al-Sadr who's actually losing control of his Mahdi Army.
Why do you see it that way?
SHEPPERD: Well, I think al-Sadr is getting weaker and he's getting weaker because the people are not gathering to support him. His support is diminishing, not spreading. Clearly, he has this Al Mahdi Army that's loyal to him and is attacking U.S. forces wherever they may be. But it's very predictable that you're going to have a imperfect truce as you establish it and then Karbala, for instance, is fairly peaceful now. But Kufa and Najaf are still problem areas, even the western part of Baghdad and the old al-Sadr City. So you see him slowly losing control. He does not have control over his army and the citizens are not joining him. And that's why I say he's getting weaker -- Heidi.
COLLINS: All right, U.S. Air Force Retired General Don Shepperd this morning from Hartford, Connecticut.
Appreciate it.
SHEPPERD: A pleasure.
COLLINS: And still to come this morning, a new government set to take the reigns in Iraq. What is the political fallout here in the U.S.?
Also ahead, why your medicine could be a prescription for getting fat.
Stay with us. We'll talk about it on AMERICAN MORNING.
(COMMERCIAL BREAK)
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Aired June 2, 2004 - 08:00 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 defense gets ready to set the stage in the Scott Peterson murder trial. Is there an explanation for what prosecutors call a web of lies?
A new weapon for terrorists -- the price of oil. Americans feeling it every time they go to the pump.
And lighting up the sky in Florida -- going after the fires in Alligator Alley.
All ahead here on AMERICAN MORNING.
ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
HEMMER: Welcome, everybody.
Eight o'clock here in New York.
Heidi working for Soledad today.
How are you doing?
HEIDI COLLINS, CNN ANCHOR: I'm doing well, thanks.
HEMMER: Oh, yes?
COLLINS: I wore yellow so we'd all stay awake.
HEMMER: Nice.
COLLINS: You can't miss it, can you?
HEMMER: And we are.
Some other stories this hour.
In a few hours time, day two of the Scott Peterson double murder trial. It will feature the attorney Mark Geragos and his opening statements for the defense. A rather dramatic day yesterday in court. A full report on what folks saw out there in northern California in a moment. COLLINS: Also, how will the role of the U.S. military change, if any, now that Iraq's new leaders are assuming their duties? We're going to talk about the practical effects of sovereignty on the military with Retired General Don Shepperd.
HEMMER: Also, Sanjay's back with us again today looking at a problem that comes along with a number of prescription drugs. We'll look at which medicines can cause you to add the pounds and what you can do about them. We'll get to that in a moment here.
COLLINS: We always show those shots, don't we?
JACK CAFFERTY, CNN CORRESPONDENT: We shouldn't have to look at that this time of the morning, you know what I'm saying?
HEMMER: How you doing?
COLLINS: Hi, Jack.
CAFFERTY: How you doing?
Coming up in the Cafferty File, we'll tell you about a hairpiece that stopped a roller coaster in its tracks. And the most unlikely personality you could ever imagine seeing on MTV. Coming up shortly.
COLLINS: Excellent tease.
CAFFERTY: Yes.
COLLINS: You're good.
CAFFERTY: Thank you.
HEMMER: Toast with butter, right?
CAFFERTY: What?
HEMMER: Toast with butter.
CAFFERTY: What are you talking about?
HEMMER: You know what I'm talking about.
CAFFERTY: Toast with butter? No, I don't. I'm lost.
HEMMER: Let's get to our top stories this morning.
CAFFERTY: What does he mean?
HEMMER: The defense today...
CAFFERTY: Can you translate?
COLLINS: (UNINTELLIGIBLE).
HEMMER: ... makes its opening statement today in the double murder trial of Scott Peterson. The prosecutor yesterday laying out the state's case that Peterson killed his wife Laci and their unborn child back on Christmas Eve 2002.
Ted Rowlands live in Redwood City, California watching it there -- Ted, good morning.
TED ROWLANDS, CNN CORRESPONDENT: Good morning, Bill.
After a day of listening to incriminating audiotapes and other evidence geared at Scott Peterson, this jury will listen to Mark Geragos, as he tries to convince them that somebody else is responsible for Laci Peterson's murder.
(BEGIN VIDEOTAPE)
ROWLANDS (voice-over): The case against Scott Peterson is centered on lies and according to Prosecutor Rick Distaso, common sense. In opening statements, Distaso methodically stacked bits of circumstantial evidence against Peterson, trying to show that "Scott Peterson is the only logical person that could be responsible for the murder of his wife and unborn son."
Distaso told the jury about how Peterson lied consistently to investigators, his family and friends, and the media in the days and months after his wife's disappearance.
Peterson looked away when Distaso showed the jury photos of he and girlfriend Amber Frey at a Christmas formal, the same night Laci attended a different Christmas party alone, where this picture was taken of her sitting in a chair. At one point, Distaso played a five minute portion of an audiotape of Peterson talking to Frey on December 31, the same day hundreds of people attended a vigil for Laci in Modesto. Peterson, who claimed he was in Brussels on international business, says to Frey at one point, "You know you're so beautiful and our relationship will grow."
In another tape, Peterson is heard talking to his friend, who works in real estate, about selling the family house -- finished. Peterson tells his friend he'd like to keep the sale private and would like to put the house on the market right away because, he said, "I can't have Laci coming home to that house."
Laci's family fought back tears when Distaso showed graphic photos of both Laci and the baby's remains.
(END VIDEOTAPE)
ROWLANDS: And Geragos will begin his opening statements at 9:00 Pacific Time. When court convenes. He'll have all day. The prosecution used the entire day yesterday. He can go as long as he wants. If he doesn't use the entire day for his opening statements, then the prosecution will begin its case, calling its first witness, the Petersons' maid -- Bill.
HEMMER: And a day of drama yesterday.
Ted, thanks, there in northern California -- Heidi.
COLLINS: Oil prices hit an all time record high, with crude oil topping $42 a barrel. Yesterday was the first day of trading since violence aimed at oil company executives in Saudi Arabia killed 22 people.
And as Tom Forman reports, a fear factor is helping fuel the latest rise.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): The attack in Saudi Arabia sent a shockwave through world oil markets and when U.S. traders hit the floor after the long weekend, the impact was immediate. Oil prices jumped almost $2.50 per barrel since last Friday, a new high.
At Harvard University, Professor of International Relations Joseph Nye calls it the risk factor kicking in.
JOSEPH NYE, AUTHOR, "SOFT POWER": Indeed, some people feel about a quarter of the price of a barrel of oil is not determined by supply and demand, but by fears for the future.
FOREMAN: Fear is clearly the driving force behind the price jump. The Saudi attack did not keep a single drop of oil off the market. Still, in a statement purportedly from al Qaeda, the group claims it will continue to hit American companies that are specialized in oil and steal the wealth of Muslims.
Operations in Saudi Arabia are prime targets, because the Saudis control a quarter of the world's oil reserves. No wonder Secretary of State Colin Powell is encouraging Saudi efforts to fight terrorism.
COLIN POWELL, SECRETARY OF STATE: They know that this kind of terrorist activity cannot be in any way found to be something that is tolerable. And I expect them to use all the resources at their disposal to go after them, just as every other civilized nation should.
FOREMAN: It is possible the consequence of attacking the oil trade could be worse for the terrorists than it is for the world. At least at the Chicago trading firm layoff Alaron, analyst Phil Flynn thinks so.
PHIL FLYNN, COMMODITY ANALYST: I think al Qaeda has made a mistake, a tactical mistake, by attacking the Saudi oil industry, because, in effect, an attack on Saudi Arabia is an attack on the entire OPEC cartel.
FOREMAN (on camera): If OPEC leaders see it that way when they meet later this week, al Qaeda may find the largest and wealthiest Islamic nations getting a lot more serious about hunting terrorists down.
Tom Forman, CNN, Washington. (END VIDEOTAPE)
COLLINS: OPEC ministers meet tomorrow in Beirut and are expected to boost oil supplies -- Bill.
HEMMER: Heidi, just as he has for the past two years, terror suspect Jose Padilla waking up today in federal custody. The 33-year- old Brooklyn born former gang member has been declared an enemy combatant who worked with al Qaeda. But he's never been formally charged and yesterday the government released some details about Padilla's alleged activities.
(BEGIN VIDEO CLIP)
JAMES COMEY, DEPUTY ATTORNEY GENERAL: On May the 8th of 2002, a soldier of our enemy, a trained, funded and equipped terrorist, stepped off that plane at Chicago's O'Hare. A highly trained al Qaeda soldier who had accepted an assignment to kill hundreds of innocent men, women and children by destroying apartment buildings.
(END VIDEO CLIP)
HEMMER: Very strong statements out of Washington yesterday.
Also, the government saying Padilla would destroy those buildings by using natural gas. Also repeating the claim that Padilla plotted to detonate a radioactive dirty bomb somewhere here in the U.S.
One of Padilla's attorneys, Donna Newman, our guest here now on AMERICAN MORNING.
Good morning to you.
DONNA NEWMAN, ATTORNEY FOR JOSE PADILLA: Good morning.
HEMMER: You've met with Padilla how many times?
NEWMAN: Twice since he's been declared an enemy combatant.
HEMMER: Twice.
And did your discussions talk in any way of what he told interrogators since he's been taken into custody?
NEWMAN: We have not been allowed to discuss that with Mr. Padilla and whatever Mr. Padilla has said to us is classified, which is kind of ironic, since Mr. Comey got on the airwaves and had this large announcement.
But we, however, our lips, they made sure, are zipped.
HEMMER: Well, here's what the government's saying. They allege Padilla is an al Qaeda terrorist, he had ties to Khalid Shaikh Mohammed, also trained in Afghanistan.
What can you share with us about those allegations? NEWMAN: Well, as I just said, they are -- whatever information I have is classified and I cannot reveal that. But more important, these are terrible allegations. Doesn't that sound like an indictment to you and to the rest of the nation? And if that sounds like an indictment, then this belongs in court. And that's what we've said from day one.
HEMMER: Yesterday you had said that he has also denied a number of things.
NEWMAN: Well...
HEMMER: What things has he denied? Can you tell us that?
NEWMAN: Well, yes. In the summary that they sent to the Senate, the government had a footnote which Mr. Comey, of course, omitted from his discussions. And in that footnote it says that Mr. Padilla has denied many of these allegations.
So the fact of the matter is where we belong is in court. Mr. Comey's statement was nothing more than an opening statement to a trial that they have not allowed to proceed. They are trying my client in the court of public opinion, without allowing him an opportunity to give his side of the story. That's not what we are about.
HEMMER: Now, the government is saying, though, had they given him a right to a lawyer early on, he would have likely chosen his right to remain silent and possibly even been released.
Your reaction to that?
NEWMAN: Well, I don't think -- I mean based on the history of terrorist cases, that's a very farfetched statement, that he would be released. On the other hand, the government has consistently said that they have held Mr. Padilla for information he gives about other people. But yesterday they changed their whole story and now they say what they're holding Mr. Padilla for is information he gives about himself, which they knew previously.
HEMMER: What, then, is the motivation, do you believe, for the U.S. government to hold him? If everything you're saying is, indeed, true, why hold him? Why keep him?
NEWMAN: Isn't it easier just to avoid the court system? Why, with all that paperwork, with judges, what a pain we have in our system. So simple just to say we say he's guilty, therefore he's guilty.
HEMMER: You have a Supreme Court ruling. I think in about three weeks it's expected.
What do you believe was the motivation to release this information publicly yesterday?
NEWMAN: I won't speculate about what the government does. I think it speaks for itself. I'll let the public draw its own conclusions about the timing of this, as well as the timing of their other releases.
HEMMER: When will you meet with Jose Padilla again?
NEWMAN: Shortly. We hope as soon as the Supreme Court gives a decision.
HEMMER: Shortly means July?
NEWMAN: Sure.
HEMMER: Shortly means?
NEWMAN: July certainly.
HEMMER: Donna Newman, thanks for your time this morning.
NEWMAN: Thank you.
HEMMER: All right -- Heidi.
COLLINS: Twelve minutes past the hour now.
Here's what's happening in other news this morning.
Two members of the U.S. military coming under fire in the Saudi capital of Riyadh today. But according to Pentagon and U.S. Embassy officials, there were -- they were not injured.
In a separate incident, though, Saudi security forces killed two militants in the western city of Taif. But the militants are not believed linked to the attacks in Khobar over the weekend.
Israeli forces launching a new incursion in a refugee camp in Gaza. Dozens of Israeli tanks and bulldozers rode into the area where thousands of Palestinians lost their homes last month. The Israeli Army says it is looking for tunnels used for smuggling weapons into Gaza from Egypt.
The FBI issuing a nationwide alert now for two stolen tanker trucks from San Antonio, Texas. The vehicles were filled with thousands of gallons of liquid propane. Meanwhile, another company has reported 15 missing gas cylinders. Authorities say there is no sign of a terrorist link in the crimes, but they want to eliminate that potential threat.
And Interstate 75 in the Florida Everglades is open again this morning. It was closed last night after this -- thick black smoke from wildfires cut visibility to zero. Flames along the highway, known as Alligator Alley, finally died down when gusting winds pushed the fire away from the road. Firefighters and state troopers are keeping an eye on the 3,000 acre blaze, though, as you would imagine.
And filmmaker Michael Moore's documentary "Fahrenheit 911" now has a distributor for the U.S. and will be in theaters on June 25. Moore's movie is critical of President Bush's handling of the 9/11 attacks. It will now be distributed by a partnership of Lion's Gate Films. The movie recently won top prize at the Cannes Film Festival in France. The Weinsteins, who run Miramax Films, bought the rights to the movie from Walt Disney Company, which had refused to distribute the film.
HEMMER: About 15 minutes past the hour.
Back to Jack.
An intriguing Question of the Day.
Good information here, huh?
CAFFERTY: Great stuff thanks to our colleagues over there at CBS, the Evening News. They released these tapes that could spell very bad news for Enron. Traders are heard on the tapes gloating about their role in the Western power crisis of a few years ago, apparently confirming that they deliberately drove up prices.
Here on the tape a trader rejects about a forest fire that shut down a big transmission line coming into California.
(BEGIN AUDIO CLIP)
UNIDENTIFIED MALE: Burn, baby, burn. That's a beautiful thing.
(END AUDIO CLIP)
CAFFERTY: Others are congratulating each other on cashing in on the crisis.
(BEGIN AUDIO CLIP)
UNIDENTIFIED MALE: They're f_____g taking all the money back from you guys? All the money you guys stole from those poor grandmothers in California?
UNIDENTIFIED MALE: Yes, Grandma Millie, man.
UNIDENTIFIED MALE: Yes. Now she wants her f_____g money back for all the power you've charged right up, jammed right up her a______ for f_____g $250 a megawatt hour.
(END AUDIO CLIP)
CAFFERTY: Aren't they beauties?
The tapes also appear to link top Enron officials Ken Lay and Jeff Skilling to schemes that started the whole crisis.
The question we're asking is this -- how damaging are these new Enron tapes?
Pretty much, I would say. Diana in Renick, West Virginia writes: "It's no mystery, Jack, why Ken Lay is still walking around free. Kennie boy is one of Mr. Bush's best buds. If anything, Bush is loyal to a huge fault. Lay won't be indicted until Mr. Bush is out of office. Even if somehow he is, Mr. Bush will be certain to make him one of the pardons as he leaves the White House. All those energy executives stick together like gummy overdone rice."
Gary in Hamilton, Ontario: "The behavior of Enron traders, as revealed in the tapes, is what we've come to expect from lawyers, MBAs and others who seem to be trained to maximize their returns at any price, even if it means lying and cheating. We must ask ourselves what kind of education these so-called professionals were receiving in their high priced schools."
Sandy in Chicago: "Traders in Chicago, Jack, want to know when Ken Lay is going to be brought to justice. He's given us honest, hard working people a very bad name. That's if anybody can find him."
And Doug weighs in from Stoney Creek, Ontario with this: "Jack, now I know what we can do with Abu Ghraib Prison. It's a perfect spot for these jackals. Maybe Grandma Millie would volunteer to work there as a guard."
HEMMER: And Sandy coming to the defense of traders. Very interesting, out of Chicago.
CAFFERTY: Yes. Well, and, yes, we heard, I guess there's a bunch of them out there that watch the program.
HEMMER: You got it.
How was your croquet game over the weekend, by the way?
(CROSSTALK)
CAFFERTY: It was like toast with butter. That's not -- let me do some translating quickly for Bill. At the top of the seven o'clock hour on the Scott Peterson case I said Peterson's toast.
HEMMER: Yes.
CAFFERTY: An hour later he goes toast with butter and it took me a while to get it.
The croquet thing is a reference to something we said yesterday about how I spent the Memorial Day holiday...
COLLINS: We're looking for regular viewers.
CAFFERTY: Yes.
HEMMER: I'm just trying to keep you on your toes, my man.
CAFFERTY: So if you want to keep up with this program, I suggest you watch every single moment of every day. HEMMER: Every single minute.
CAFFERTY: Because even I get lost sometimes.
HEMMER: You know, that's best advice you've given all day.
Thank you, Jack.
CAFFERTY: Yes.
HEMMER: Nice to see you.
CAFFERTY: All right.
HEMMER: All right.
COLLINS: We want to go ahead and check on the weather now.
(WEATHER REPORT)
COLLINS: And we're going to keep it in Georgia now. A one of a kind accident, in fact, in that state. A huge crane topples over in a busy suburban neighborhood. Look at this. When the dust settles, one house is literally sliced in half. The crane was being used to remove a dead tree from the back yard. But the homeowner was inside when suddenly the crane's arm cut right through the three story home.
(BEGIN VIDEO CLIP) BEVERLY WOLFE, HOMEOWNER: I was sitting there eating my dinner at the table in the kitchen and I heard this crash and just kind of got up and walked away and thought maybe I should start running out of here. And the crane just came right through the house.
(END VIDEO CLIP)
COLLINS: Well, as you saw there, luckily, Ms. Wolfe walked out without a scratch. Without her lunch. Did she say she was eating lunch?
HEMMER: Well, she was running.
COLLINS: But no scratches.
HEMMER: I thought we did hear that.
COLLINS: Yes. Wow.
HEMMER: Well, you try to get the dead trees out of the way so they don't come crashing down on your house and you get a crane instead.
COLLINS: You get the crane, right. You got it.
HEMMER: It doesn't seem like the trade-off there is even.
In a moment here, if you're having trouble losing weight, maybe it's your medicine. Sanjay has an intriguing story for us today. We'll get to that in a moment.
COLLINS: Also ahead, a new government gets set to take the reigns in Iraq. What does it mean for U.S. troops? We'll be talking about that coming up on AMERICAN MORNING.
(COMMERCIAL BREAK)
COLLINS: President Bush says he expects the violence in Iraq to continue up to and past the day that Iraqis are given sovereignty of their country. So, what does that mean to the thousands of U.S. troops in Iraq, especially now that a new interim government is transitioning into power?
Earlier on AMERICAN MORNING, coalition spokesman Dan Senor spoke to the question.
(BEGIN VIDEO CLIP)
DAN SENOR, SENIOR CPA ADVISER: There is a major terrorist threat in Iraq and the Iraqi security forces right now, and immediately after June 30, will not be in a position to handle the threat on their own. And they're going to need the continued support of the U.S. and the multinational force. It's quite logical.
(END VIDEO CLIP)
COLLINS: Retired Major General Don Shepperd is joining us from Hartford, Connecticut this morning to talk about all of this.
General, good morning to you.
Thanks for being with us.
I want to ask you about, obviously the new interim government was put into place just yesterday.
What does this mean to U.S. forces on the ground, in the air and all around, if anything? Does their role change?
MAJ. GEN. DON SHEPPERD (RET.), U.S. AIR FORCE, CNN MILITARY ANALYST: It's still unclear. The role of the U.S. forces for the immediate future won't change, Heidi. They're going to be there to protect themselves, provide security of places where they are asked and told to do so by the American chain of command.
What has to be negotiated, however, with the new interim government, and then finally the transitional government in January of next year, is the status of forces agreement. In other words, what the American forces are allowed to do, where they're allowed to do it, what rules apply and then, of course, when we eventually leave.
So the soldier himself won't see much change in what he's doing right now. But behind-the-scenes, there's going to be a lot going on with the new Iraqi leaders.
COLLINS: Well, we heard Dan Senor just a moment ago talking a little bit about this, as well.
Do you think that the forces will be able to do both, that being continuing with their combat operations and then also protecting this new interim government?
SHEPPERD: Well, a lot of effort is going to go into protecting the new interim government and the ministers and what have you, because clearly the former regime loyalists, people that do not want to see a new Iraqi government, a democratically elected government, are going to wage mischief all across the country. There's going to be increased terrorist attacks, not only during the period after the 30th of June, but even after the transitional government takes place, the transition to the new government takes place in January of 2005.
There probably will be attacks all along against the new government and trying to keep order from being established in the interests of taking over power again for interest groups within Iraq itself.
COLLINS: General Shepperd, it seems a lot like the onus has been on the United States and coalition, if you will, to protect the Iraqis.
When will the Iraqis step up and start protecting and working to protect themselves?
SHEPPERD: Well, they're doing it now in many areas. But the process of training and establishing a new army, training, establishing and equipping a police force that can really provide security in the various areas is a slow process, Heidi. It takes a long time to do that and to do it properly.
Clearly the new interim government and then the transitional government will have authority over the emerging Iraqi forces. And you'll see a slow handoff from U.S. forces in the cities to the Iraqi forces being established, and then a slow backing away out of the cities and eventually a withdrawal from the country. That seems to be what's going to take place.
COLLINS: All right, quickly, let's look south a little bit, if we could, General Shepperd, to Najaf and Kufa. The cease-fire there pretty shaky. It seems to be crumbling, in fact. By the way you see things, you think that it's al-Sadr who's actually losing control of his Mahdi Army.
Why do you see it that way?
SHEPPERD: Well, I think al-Sadr is getting weaker and he's getting weaker because the people are not gathering to support him. His support is diminishing, not spreading. Clearly, he has this Al Mahdi Army that's loyal to him and is attacking U.S. forces wherever they may be. But it's very predictable that you're going to have a imperfect truce as you establish it and then Karbala, for instance, is fairly peaceful now. But Kufa and Najaf are still problem areas, even the western part of Baghdad and the old al-Sadr City. So you see him slowly losing control. He does not have control over his army and the citizens are not joining him. And that's why I say he's getting weaker -- Heidi.
COLLINS: All right, U.S. Air Force Retired General Don Shepperd this morning from Hartford, Connecticut.
Appreciate it.
SHEPPERD: A pleasure.
COLLINS: And still to come this morning, a new government set to take the reigns in Iraq. What is the political fallout here in the U.S.?
Also ahead, why your medicine could be a prescription for getting fat.
Stay with us. We'll talk about it on AMERICAN MORNING.
(COMMERCIAL BREAK)
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