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American Morning

Bush to Address National Urban League; Democratic Convention; Missing Jogger

Aired July 23, 2004 - 9:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BILL HEMMER, CNN ANCHOR: Good morning. After a controversy with the NAACP, the president today reaching out to African-American voters when he speaks before the Urban League this morning.
Senator John Kerry launching a campaign march that will lead him eventually to Boston and the DNC.

And strange new twists from the case of a missing Utah woman. What her husband did before and after she went missing.

All ahead this hour here on AMERICAN MORNING.

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

HEMMER: Good morning, everyone. Nine o'clock in New York. Soledad at home resting and waiting. And Heidi Collins is not. She's here with us.

Good morning.

HEIDI COLLINS, CNN ANCHOR: I'm still waiting, though, too.

HEMMER: Yes, you are? For what?

COLLINS: Her family's waiting, everybody's waiting.

HEMMER: Yes?

COLLINS: For babies.

HEMMER: OK.

COLLINS: For her babies.

HEMMER: That's right. That's what I'm talking about.

COLLINS: OK. Woo.

HEMMER: Got that cleared up.

New polls show a dead heat between the president and Senator John Kerry in this election. Both candidates have a big day ahead of them. We'll check in with a report on both campaigns in a moment, hear the campaign calendar momentarily. COLLINS: Also, how are the families of 9/11 victims responding to the work of the commission and their recommendations? We'll talk to Carie Lemack, whose mother was killed on September 11.

HEMMER: Also, that new aircraft carrier, Ronald Reagan, coming home today for the first time today. Six-thousand Navy personnel onboard. Looking forward to that. We've got a guy onboard ourselves. We'll get to it on the West Coast here this hour.

COLLINS: Jack Cafferty now.

JACK CAFFERTY, CNN ANCHOR: Thank you, Heidi.

The 9/11 Commission report 20 months in the making, two-and-a- half million pages of documents, 1,200 people interviewed. They came up with a list of recommendations, here's some ways we can make the country safer. Congress, they're going on vacation today and say they won't have time to fool with this till sometime next year. Am@cnn.com.

HEMMER: And the beat goes on. Thank you, Jack.

To the campaign trail now. President Bush traveling to Detroit this hour, where he'll talk at the National Urban League Conference before heading back to his ranch in Texas. Kathleen Koch on the front lawn this morning starts our coverage this hour.

Good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Bill.

It's a short trip by President Bush this morning to the battleground state of Michigan, his 16th visit to the state as president. It's a state that the president narrowly lost by just five percentage points to Al Gore back in 2000. But President Bush's focus this morning will be on mending fences with the African-American community -- community. He'll be speaking in Detroit to the National Urban League after refusing an invitation to appear at last week's NAACP convention in Philadelphia.

Now, Democratic challenger John Kerry did speak to both groups, and at each venue. He criticized the president yesterday, telling the National Urban League that Mr. Bush has "a failing record on African- American opportunity." Now, of course, the White House is taking issue with that, insisting that Mr. Bush is an inclusive leader with a proven record of reaching out to all Americans, and working with African-American leaders on issues like education reform and minority home ownership.

The administration officially saying that it was a scheduling problem that forced President Bush to turn down that invitation to speak to the NAACP. However, the president himself said that his relationship with the civil rights group is "basically nonexistent."

And there are some in Republican circles who believe that it is basically a waste of time for the president to make these appearances since, traditionally, for decades, the majority of African-Americans have voted Democratic. However, in a close election, and in a battleground state like Michigan, the president believes that every single vote counts.

And Bill, as you mentioned, it's shaping up to be a very close race this year. The latest poll numbers from the latest CNN-"USA Today" Gallup poll do show that John Kerry is leading President Bush by just one percentage point, with Ralph Nader drawing about 4 percent of likely voters.

Now, after the president does leave Detroit this morning, he heads to his ranch in Crawford, Texas, where he'll be relaxing for nearly a week, while the Democrats take the national spotlight at their convention in Boston. Back to you.

HEMMER: Going back to the year 2000, more than 90 percent of African-Americans going with Al Gore as well. Kathleen, thanks.

President Bush's speech to the Urban League set to start at 10:00 a.m. Eastern Time. Live coverage in Detroit when that happens -- Heidi.

COLLINS: The Democrats take center stage Monday, as we have said, when they open their presidential nominating convention in Boston. And in a very tight race, they'll be going after those much sought after undecided votes. Kelly Wallace live from Boston now this morning with the very latest.

Good morning once again, Kelly.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning again, Heidi.

Well, as Kathleen's just mentioning, John Kerry heading into this convention with polls showing this race remaining neck and neck. This means decisive problems for President Bush over the past few months, the selection of John Edwards. John Kerry has not been able to pull out in front. Well, Democrats are hoping that will change after John Kerry's speech here and all the razzle-dazzle here in Boston.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): Racing against the clock to transform the home of Boston Celtics and Bruins into center stage for the Democratic team, while the party's quarterback, John Kerry, and his running mate, John Edwards, begin a pre-convention cross-country blitz in Colorado, where Kerry was born. Yesterday, Senator Kerry, reacting to the September 11 report, said President Bush has not done enough since the attacks to keep America safe.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We must do better. And there's an urgency to our doing better. We have to act now.

WALLACE: But Senator Kerry still trails President Bush significantly when likely voters are asked who would do a better job handling terrorism. In the latest CNN-"USA Today" Gallup poll, 56 percent chose the president, 38 percent backed Mr. Kerry. And the poll also showed this race a virtual dead heat, with 83 percent saying they've made up their minds. Only 17 percent said they could still switch. And so the senator heads into his convention hoping to introduce himself to those crucial swing voters while Kerry's opponents say they won't cede the entire city to the Democrats.

JIM DYKE, RNC: We're going to be here to make sure that people actually know John Kerry's real record, or at least to the -- to the best of our abilities, given that we're sort of swimming upstream here in Boston.

WALLACE: And this not-so-warm welcome directly across the street from the FleetCenter, the Halftime Pizzeria, one of several businesses inside a strict security zone, deciding to close down convention week.

(END VIDEOTAPE)

WALLACE: And security expected to be a big story at this convention, the first since the September 11 attacks. Right now, the only credible threat we're hearing about, law enforcement sources telling CNN they have a credible threat that a domestic group or individuals could be plotting an attack against media vans at this event -- Heidi.

COLLINS: Kelly, also, talking about the security now, that highway right behind you, a very busy highway there, Highway 93, closing, right?

WALLACE: It is, exactly. On this bridge behind me, it is Highway 93. It will be closing for the duration of convention week, which is really a traffic nightmare for a lot of Boston residents and workers.

There's also a huge security perimeter all around the FleetCenter. We mentioned that one business in our story there. Businesses deciding to close. They were allowed to stay open, Heidi, but they say just getting to work, they getting -- those businesses getting to work, their staff, it would just take them hours and hours, so they're deciding the hassle's not worth that.

COLLINS: All right. Well, Kelly Wallace, thanks so much for updating us on all of that.

And AMERICAN MORNING will be live from the Democratic convention in Boston beginning Monday, 7:00 a.m. Eastern.

HEMMER: The 9/11 Commission yesterday saying -- quoting now -- "We are not safe." Commissioners believe a dramatic overhaul of intelligence is critical as long as the U.S. faces the threat of terrorism.

(BEGIN VIDEO CLIP)

THOMAS KEAN, CHAIRMAN, 9/11 COMMISSION: We expect further attacks. Against such an enemy there can be no complacency. This is the challenge of our generation. As Americans, we must step forward and we must meet that challenge.

(END VIDEO CLIP)

HEMMER: Thomas Kean from yesterday. The panel recommends a number of changes. Among them, bringing together the counterterrorism efforts of the CIA, the FBI, Defense and Homeland Security departments under a single roof, naming a national intelligence director to oversee all those agencies and report directly to the White House, and forming permanent oversight committees for homeland security in each House of Congress.

Carie Lemack's mother was killed on 9/11. She pushed for the government investigation that led to yesterday's report. Carie's back with us here live in Boston this morning.

And good morning to you.

CARIE LEMACK, MOTHER KILLED ON 9/11: Good morning, Bill.

HEMMER: On the day after, what do you take away from what came out yesterday?

LEMACK: Well, I think we're recharged. We worked very hard to get the commission, and we've been monitoring commission ever since its inception. But today we know that we now have these recommendations, and it's our job to make sure that they're implemented.

We saw 10 commissioners yesterday who were all fully backing the recommendations. And I have to believe that they have looked at the evidence. They've made 1,200 interviews, looked at 2.2 million documents. If these aren't the best recommendations out there, I challenge anyone with something better to come forward.

But the worst thing we can do is to do nothing. So I think that it (UNINTELLIGIBLE) all of Congress, the president and all Americans to make sure that we make America safer, because now it's in our hands

HEMMER: So then the question is, does anything get done? Bob Kerry, commission member, talking with Heidi last hour. Here's how he answered that question.

(BEGIN VIDEO CLIP)

BOB KERREY, 9/11 COMMISSION MEMBER: I'm just not optimistic that it's going to happen anytime soon unless the American people rise up and ask their congressmen, their senators and their president. Look, we've got to get these changes in place, because if we don't, the country is -- simply is not going to be as safe as it needs to be.

(END VIDEO CLIP)

HEMMER: You heard his words, Carie. He's not optimistic. How does that hit you?

LEMACK: Well, it makes me sad. We also heard from the speaker of the House that he's not optimistic things will get done. But it's that kind of attitude that's going to make Americans less safe.

We've been told time and time again that we're -- there's going to be an attack perhaps before the election. Why are we going to wait until after the election to make changes that could stop that attack?

I don't understand why Congress won't take this up, the president as well. He's going to Crawford, Texas. The Congress is going on vacation. We need to see some more urgency.

You know, after September 11, on September 12, and in the weeks ensuing, people asked what can we do to help. Well, today we have an answer. A 600-page answer, but it's a good answer.

And I ask for everyone, we need everyone's support. They need to contact their senators and congressmen. They need to let people know that this is important to them because it could help to save them or their loved one's lives.

HEMMER: You know, Carie...

LEMACK: I don't want to have to look any other family member in the eye if something does happen and we haven't done anything to make these changes.

HEMMER: In the effort to get your own life back, and get it back on track, how does this report stack up now in your own healing process?

LEMACK: Well, my mother is still murdered. But I know today, just as I've known for the past almost three years now, that one thing that I can do to make sure her murder wasn't in vain is to make changes so no one else goes through this.

The pain of losing my mom, it's never going to go away. And it's still here today. But at least I can be constructive. And I think this commission's report, these recommendations, are so far the best thing we can do.

HEMMER: Carie Lemack in Boston, thanks -- Heidi.

LEMACK: Thank you.

COLLINS: Questions are swirling in Utah about the behavior of Mark Hacking. His wife, Lori, has been missing since Monday. Ted Rowlands is live in Salt Lake City now with the very latest on the case.

Ted, hello.

TED ROWLANDS, CNN CORRESPONDENT: Hello, Heidi.

The search efforts here in Salt Lake City are scheduled to begin within the next hour. Family members are hoping that the public will come out in earnest, despite the latest reports concerning Lori Hacking's husband, Mark. According to the "Salt Lake City tribune" here, Mark Hacking purchased a mattress on Monday morning just before calling police. He had told police, according to the "Tribune," that he had been jogging the three-mile trail that his wife was last seen jogging on before calling police. This report flies in the face of that.

Of course, this, of course, also coming in addition to the revelation that he had an intricate series of lies concerning his graduation from college and his trip to medical school in North Carolina. One police spokesperson called him a person of interest, and said that the lies about medical school were "the tip of the pyramid."

That said, family members said they are focusing on trying to bring Lori Hacking home, and they're hoping that the public will come out here this morning and help. She's now been missing for four days. This is the fifth day of search efforts looking for 27-year-old Lori Hacking -- Heidi.

COLLINS: All right. Ted Rowlands, thanks so much for the update on that.

As you can imagine, the family very much concerned about Lori Hacking, wanting to know where she is. Been gone for a couple of days now. Twenty-seven years old, five weeks pregnant. Her husband, Mark, now in the hospital.

So we want to go ahead and talk with family members. We have the cousin of Lori Hacking with us. Kathy Black, she is there, along with Chris Smart, the uncle of Elizabeth Smart.

Thanks so much for joining us this morning, to the both of you.

Kathy, I'd like to begin with you. What is your family saying about some of the new developments that we have just heard, once again, from our correspondent, Ted Rowlands, there about Mark?

KATHY BLACK, LORI HACKING'S COUSIN: Well, right now, we haven't been focusing as much on what the media reports have been. As you can well imagine, we've been here at the volunteer center as much as possible, and really focusing more on what we can do to find Lori, and trying to get the community out in support, and help them understand that whatever they might be hearing in the media is not -- is not of the focus. What the focus is, is to come out and find Lori.

COLLINS: When was the last time you spoke with her?

BLACK: I spoke with Lori -- actually, Lori and Mark came out to visit me in New York City where I live last year, last fall. But I have been in constant contact with her via e-mail.

When they were thinking about moving to the East Coast, they were looking to me to help them find out, you know, what the cost of living is like, you know, what they could expect living on the East Coast. And they were excited to move. And the last e-mail I got from Lori was approximately a week ago, and she was saying how excited they were because they would be close and could come visit me in New York more often.

COLLINS: Nothing seems strange to you about that e-mail in the slightest?

BLACK: No.

COLLINS: OK. What sort of...

BLACK: Again, she was...

COLLINS: Go ahead.

BLACK: Again, I was just going to say, she was very excited about the opportunity to -- to move to the East Coast and to -- to be near. Lori loved to travel -- loved to travel, and she's a very adventurous girl. And just, you know, looking forward to some new -- you know, some new, exciting challenges in her life.

COLLINS: Are you getting a lot of help from the community? You talked about keeping the focus on Lori and finding her.

BLACK: We have been getting -- the first day there was over 1,200 volunteers that came out to search for Lori. We've been getting lots of great donations from people. But we still need their help.

A number of the volunteers have -- have dropped off, and we need them to understand that Lori is still out there. She's still missing. And we need their help.

COLLINS: Understood. All right. Thanks so much to you, Kathy.

And Chris, I want to ask you a couple of questions now.

CHRIS SMART, ELIZABETH SMART'S UNCLE: Sure.

COLLINS: It wasn't very long ago when you were searching for your own niece. This has got to be tough for you as well.

SMART: You know, we are just so grateful that we had such a fantastic outcome in our search. And we are just trying to aid the Hackings family any way that we can in helping put together the search and carry it out, and encourage the public to please come out and help us find Lori.

COLLINS: I imagine you are really...

SMART: And it...

COLLINS: I'm sorry. I imagine you're really very much able to offer that sort of positive reinforcement to the family. Is that true?

SMART: Yes. You know, we try to go ahead and just let them, you know, keep focused at -- you know, so far, we haven't seen anything, you know, that wouldn't say that she's out there. And so, you know, just keep the focus that we want to bring her back. COLLINS: All right. Well, to the both of you, thanks so much for being with us this morning. We offer you our very best. And good luck in this search, for sure. Chris Smart and Kathy Black, thanks so much.

BLACK: Thank you.

SMART: Thank you.

HEMMER: About 16 minutes now past the hour. A check of the other news this morning. We want to start with Iraq. Fredricka Whitfield has all of that at the CNN Center.

Tough news here, Fred. Good morning.

FREDRICKA WHITFIELD, CNN ANCHOR: Hi there, Bill.

Two U.S. soldiers have been killed by a roadside bomb in Iraq. A military convoy was struck in the Iraqi city of Samarra, north of Baghdad. A third American was also injured in the blast.

Officials in Turkey have ruled out sabotage as a possible cause for the derailment of a high-speed train. At least 36 people were killed and some 80 others injured yesterday when the train jumped the tracks on its way to Ankara from Istanbul. The train's engineers are being questioned now.

The House of Representatives is taking on same-sex marriage. Lawmakers yesterday voted to bar federal courts from ordering states to recognize marriages approved in other states. The Bush administration supports the bill, which faces an uphill battle in the Senate.

And there's been a reversal in the Kobe Bryant sexual assault case. The judge now says findings from a physical exam of Bryant hours after he was first accused will be allowed to be used at trial. That reverses an earlier decision which would have suppressed those results. The reversal came after Bryant's defense filed notice that it would introduce the evidence.

And finally, the former husband of U.S. Olympian Marion Jones is claiming she used banned performance-enhancing drugs. "The San Francisco Chronicle" quotes C.J. Hunter as saying Jones was using the drugs when she won five medals at the 2000 Sydney games. Jones' attorney calls Hunter an embittered former spouse who was "seeking to exact his revenge by telling lies to the government."

And now back to you, Bill.

HEMMER: All right, Fredricka. Thanks for that.

Back to Jack now, "Question of the Day" here in New York.

CAFFERTY: Thank you, sir.

The 9/11 Commission report is out. Recommendations, everything, what to do to make the country safer. What happens next? Well, nothing, I guess.

Congress says it won't be able to get to this till next year. Much too busy. No time this year. Legislative agenda's already full. Got this gay marriage thing, big national crisis.

Who sets the agenda? Well, Congress itself does, of course. So if they want to change it, they can damn well change it. But, no, no.

And they are going on vacation today. We mustn't let terrorism get in the way of, you know, a little fun and sun in the sand.

It's mind-boggling. It's mind-boggling. These clowns are going away on vacation.

What should the Congress do about the 9/11 report? I'm not trying to steer your answers here, of course.

Jane in Philadelphia, "Congress should immediately go into special session instead of summer vacation, which would not only begin to make us safe, but would also put Americans on war footing. We all need to be reminded, we're in a real war here, especially our leaders."

Amen, Jane.

Frederick in Spencer, Indiana, "These people have forgotten they're public servants. All they're interested in is gorging themselves at the public trough. I for one will not vote for any incumbent. Maybe that way we can restore an environment of service and trust."

"The question is not what Congress should do about the 9/11 recommendations, but what voters should do." This is from Virginia. "All of our high-placed elected officials should be given the opportunity to pursue other interests."

And Ron in Luray, Virginia, "Stop bashing the Congress. These guys make more money and have more perks than any legislative body in history. And they need their time off to spend that money and use their perks in order to get reelected. Or, on the other hand, let's start the revolution against these fat cats come November."

HEMMER: The DNC is -- the Democratic convention in Boston is scattered with security. They're going to have them all over Manhattan in about a month...

(CROSSTALK)

CAFFERTY: Yes. Why is...

HEMMER: For the first time since I've been in New York in over two years, yesterday on the subway, I heard that announcement, keep your eye out for suspicious packages, report anything that you see that does not look right.

CAFFERTY: You know, I hope to god nothing happens. But what will the explanation of these boobs down there be if something does, and instead of addressing these recommendations, well, we had to debate gay marriage thing, and we had to go on vacation.

I mean, how -- if something happens, how can they look anybody in the eye and say anything? I mean, it's just -- it's mind-boggling.

Where are they going? You should be in special session. You should do something. People are trying to kill us. You know what I'm saying?

HEMMER: You heard Bob Kerrey. He's not optimistic.

CAFFERTY: Yes. And he knows how that thing works down there.

HEMMER: Thank you, Jack.

CAFFERTY: Yes.

COLLINS: All right, Jack. Thanks so much.

We're going to get a check on the weather now. Chad Myers is at the CNN Center with the very latest forecast.

(WEATHER REPORT)

COLLINS: All right, Chad, thanks so much for that.

HEMMER: So the airports are good at 9:21 in the morning.

COLLINS: Yes. Yes. Well, there's a whole day ahead, isn't there?

HEMMER: That's right.

Thank you, Chad. Talk to you a bit later this hour.

Also, in a moment here, looking at a dead heat for the race for the White House now. Pollsters say that says something very important about voters. We'll talk to Bill Schneider, who knows a thing or two about this in a moment.

COLLINS: Also ahead, a look at a new mode of transportation that's putting some New Yorkers in seventh heaven.

HEMMER: And the cabby who passed up a fortune and went the "Extra Effort" to help someone out still to come this hour on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Right about 25 minutes past the hour. Lance Armstrong has his bike, and he knows it all too well. This morning, Jeanne Moos finds a whole new way, though, to cycle around New York City.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): You won't see this bike at the Tour de France.

UNIDENTIFIED MALE: What is it, sir? What is it?

MOOS: This bike seats seven. And if that doesn't make you wonder, wonder woman in drag might.

UNIDENTIFIED MALE: Hi, ladies.

MOOS: The seven-seat bike is turning heads in Times Square. Even Spider-Man's head.

UNIDENTIFIED MALE: Yeah! Hold on tight, guys! Whoo!

MOOS: There are about a dozen of these seven-seaters in this country. The ones in Times Square cater to tourists.

UNIDENTIFIED FEMALE: I love it! This is awesome!

MOOS: One person steers, all seven pedal. The inventor is an American artist living in Amsterdam. Eric Stoler (ph) is known for creations he calls urban UFOs, like the Light Mobile, a Volkswagen Bug with computerized light patterns, and the Bubble Heads, wearing Plexiglas spheres. And even a Bubble Boat, with its top made out of a grain silo. It sort of makes a seven-seat bike seem tame.

UNIDENTIFIED MALE: This is the SUV of bicycles.

MOOS: Owner Don Dimiti (ph) paid $16,000 for what's called the Conference Bike, and hopes to acquire a fleet of 10.

UNIDENTIFIED MALE: I've got hydraulic brakes down below it...

MOOS: It's got what's called a universal joint, one gear, front- wheel steering.

(on camera): Have you taken out any pedestrians ever?

UNIDENTIFIED MALE: Only the ones I didn't like.

UNIDENTIFIED FEMALE: Watch out, girl.

UNIDENTIFIED FEMALE: Get over yourself, buddy.

MOOS (voice-over): Despite a couple of close calls...

UNIDENTIFIED MALE: Oh, sorry about that. Are you all right?

MOOS: ... Paul Creshi (ph) says he's never had an accident.

UNIDENTIFIED FEMALE: You were going to hit that guy.

MOOS (on camera): You feel the bump.

UNIDENTIFIED MALE: Oh, yes, you do.

MOOS (voice-over): Almost as eye-catching as the bike... UNIDENTIFIED MALE: Oh, my gosh. Make some noise.

MOOS: ... is a driver in drag named Sybil (ph).

UNIDENTIFIED MALE: Pedal forward, honey. Forward.

MOOS: On a bicycle built for seven, you can even powder your nose...

UNIDENTIFIED FEMALE: It's better than the naked cowboy.

MOOS: ... though we recommend against riding the seven-seat bike naked.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

HEMMER: See what you get in this city? It's 24-hour entertainment.

COLLINS: Yes. I've seen him a couple of times.

HEMMER: Yes?

COLLINS: I've actually seen the bike, too. So does that mean that I really can say (UNINTELLIGIBLE) now?

HEMMER: I think you're inducted.

COLLINS: I'm a native. Not even close. All right.

Still to come this morning, TGIF. It is time for "90-Second Pop." Smart move or big, fast risk? Kirstie Alley is back with a show called "Fat Actress."

Plus, Halle Berry reborn as a cat. And Matt Damon just plain "Bourne" again. It's "Catwoman" versus "The Bourne Supremacy" in "90- Second Pop."

(COMMERCIAL BREAK)

HEMMER: Back here in New York City, on Wall Street, we are open for trading on a Friday morning. The Dow starting today at 10,050, finished at about four points in positive territory yesterday.

Nasdaq market site, still under 1,900; 1,889 is your opening mark. Descent day yesterday, 15 points to the positive.

Welcome back, everybody -- 9:30 here in New York. And good morning again.

COLLINS: Good morning to you, everybody.

The latest polls, you know, don't show a clear advantage for either candidate, but they do show something interesting about the voters. Bill Schneider is breaking down the numbers and he's seeing a trend that could make for a very interesting Election Day. But we kind of already suspected that.

HEMMER: It is close out there, right?

"90-Second Pop" in a moment here, talking about the movies you should not see this weekend. I think this one is on their list: Halle Berry's new film "Catwoman." We'll talk about that in a moment.

COLLINS: Call it kitty litter.

HEMMER: Yes.

COLLINS: Not very good. All right.

To the news now this morning. Douglas Faneuil, whose testimony helped to convict Martha Stewart and her broker, Peter Bacanovic, will be sentenced this morning. Mary Snow has the story.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): He's the baby-faced stockbroker's assistant whose phone conversation with Martha Stewart changed her fate. Doug Faneuil was the insider the government needed to make its case against Martha Stewart and stockbroker Peter Bacanovic. Legal experts say without Faneuil, conviction wasn't a sure thing for prosecutors.

IRA SORKIN, SECURITIES LAWYER: Would they have been able to go to trial? Sure. But would they have been able to obtain a conviction? Probably not.

SNOW: Faneuil handled Stewart's sale of ImClone's stock on December 27, 2001. He initially backed up the story by his boss, Bacanovic, and Stewart that there was an agreement to sell Stewart's stock once it fell below $60. He later broke ranks, and told investigators there was no such agreement. He testified the real reason for the sale was that ImClone founder Sam Waksal was trying to dump all his shares, and that he, Faneuil, was told to call Stewart and inform her.

SORKIN: It's always in the government's best interest in a so- called white collar case to have an insider, someone who was there, someone who can talk about what happened, because generally white collar cases are not done openly and notoriously like a bank robbery.

SNOW: He made a deal with investigators, admitted lying to them, and testified. Defense lawyers attacked his credibility, saying he was star-struck with Stewart, and that he once bragged in an e-mail "Baby put Ms. Martha in her place." Barred from the securities industry, Faneuil now works at in a Manhattan art gallery and lives in Brooklyn. While he tries to live in obscurity, he'll have a hard time shaking his legacy.

JACK COFFEE, COLUMBIA UNIVERSITY: He was critical to the case. So it may be his epitaph that he was the man who sent Martha Stewart to prison.

SNOW (on camera): For telling his story, Faneuil, in exchange, gets leniency. His lesser charge of a misdemeanor is punishable by up to a year in prison. But legal experts expect he'll be put on probation.

Mary Snow, CNN Financial News, New York.

(END VIDEOTAPE)

COLLINS: Stewart and Bacanovic have been sentenced to five months in prison and five months home confinement.

HEMMER: Now to elections, the political season. Democratic convention just three days away. That race now just about as close as it can get.

The newest CNN-"USA Today" Gallup poll of likely voters has John Kerry a percentage point ahead of President Bush, 47 to 46, with a 3.5 percent margin of error. With it that close, already in Boston for us, here's Bill Schneider this morning.

Good morning, Bill. You are there...

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning, Bill.

HEMMER: ... in position and ready to go. Very interesting numbers. If you read deep into these -- the polling numbers that came out yesterday, asked whether or not you're more enthusiastic about voting this year than usual, when compared with the year 2000 and compared with the year 1996, look at that figure. Sixty percent. What does that say to you, Bill?

SCHNEIDER: Well, you know, this election is split 50-50, just as the 2000 election was split. But that can happen two ways.

In 2000, this -- the 50-50 split was like, whatever. People were sort of indifferent. This year, they're raring to go. It means we're pumped. And take a look at the difference between the parties.

In 2000, the Republicans were more enthusiastic about voting than the Democrats were, 46 to 36. But this year, the Democrats are rearing to go. Remember Florida. Two-thirds of Democrats are saying they're more enthusiastic than usual. Republican enthusiasm is up over what it was, but Democratic enthusiasm is really up.

HEMMER: Which could tell us a lot about voter turnout come the 2nd of November.

SCHNEIDER: Yes, indeed.

HEMMER: Back in the polling numbers, too, asked about whether or not the Bush administration deliberately misled the public on WMD, 45 percent say yes, 52 percent say no. Concentrate on that word "deliberately." Define that for us in this polling. SCHNEIDER: Deliberately misled is -- sounds to me like a euphemism for lied. That is a growing number of Americans over the past two years who are willing to say that the Bush administration lied to the American people about weapons of mass destruction.

Emphasis on the word "deliberately," which is in the poll. That's almost half of Americans have now reached that conclusion. That is a very, very serious judgment on the Bush administration.

HEMMER: So then on the issues, Bill, between Bush and Kerry, here's how they stack up. On terrorism, Bush a clear leader here. On Iraq, still a leader. On the economy, it flips to Kerry. So, too, for health care by a rather substantial margin.

How do the two parties then go about their election season knowing the Democrats kick off Monday where you are?

SCHNEIDER: Well, what the Democrats have to do is play up, of course, their advantage on domestic issues. But right now, the most serious concerns are national security and, of course, the engagement in Iraq.

Kerry is going to go to great lengths to show that he can be as strong and as resolute as President Bush after all those charges of flip-flopping. And he's going to have to make the point that he is a man who says what he believes. Because Americans, first and foremost, want to be sure that whoever they elect president is going to protect the American people and keep them safe.

HEMMER: Thank you, Bill. We'll see you on Monday, all right?

SCHNEIDER: OK.

HEMMER: Bill Schneider in Boston.

AMERICAN MORNING is live 7:00 a.m. Eastern Time, starting to be there throughout the week. Monday, Bill Richardson, Ted Kennedy, Joe Lieberman our guests. On Tuesday, Teresa Heinz Kerry will be here, Ben Affleck, and a cast of others.

COLLINS: Quite a lineup.

HEMMER: They're all coming out of the woodwork, let me tell you.

COLLINS: Yes. They heard you were going to be there.

Still to come...

HEMMER: Well, we're all going to be there.

COLLINS: Still to come this morning, why go to someone else's movie theater when you can buy your own? We're "Minding Your Business" this morning.

HEMMER: Also, talking about movies, "Catwoman" tries to scratch her way to the top. But does the movie belong to the kitty litter, as Heidi suggests?

COLLINS: Well, it's not quite my line.

HEMMER: Ooh. To the litter box in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Well, in guess you haven't guessed, it's time for our Friday edition of "90-Second Pop" with our stars of the show, Sarah Bernard of "New York" magazine, B.J. Sigesmund of "US Weekly," and Jessica Shaw of "Entertainment Weekly" magazine.

Thanks, guys. Nice to see you on a Friday.

JESSICA SHAW, "ENTERTAINMENT WEEKLY": You too.

COLLINS: "Fat Actress" with Kirstie Alley, does anybody want to watch this show, do you think?

SHAW: Personally, I do.

COLLINS: Yes?

SHAW: I think this is the best career move for her to make. She's doing a show for Showtime, "Fat Actress," based on her own issues with weight and love and family and work.

SARAH BERNARD, "NEW YORK" MAGAZINE: This is a major problem.

COLLINS: Reality show or not?

SHAW: No, it's going to be a scripted show. And they start shooting in September. And I think, you know, more power to her. There are pictures in the tabloids of her every other week, you know, gobbling down In and Out burgers in her car.

B.J. SIGESMUND, "US WEEKLY": Yes. I have to say, like, I don't think it's very promising, and I don't think many people are going to be watching this show. But a good thing about it is, it has a producer from "Curb Your Own Enthusiasm." So, perhaps it's going to be better than we think.

COLLINS: A great show.

SHAW: (UNINTELLIGIBLE) from "Seventh Heaven."

BERNARD: Right.

SHAW: So, it's going to be a very weird...

BERNARD: Well, you know, I think for a while now actors have been doing this thing where when they're disgraced in some way, they go on "Saturday Night Live," like Paris Hilton did. They make fun of themselves a little bit.

(CROSSTALK) BERNARD: Right? That's kind of the formula.

SIGESMUND: But when is...

BERNARD: But this is taking it way too far.

SHAW: I think this she's...

BERNARD: I mean, this is like a cry for help.

SHAW: No, I think this is a great move.

BERNARD: This is not -- not good..

SIGESMUND: I don't...

SHAW: I think this is like doing -- this is like Larry David doing "Curb."

COLLINS: Yes.

SHAW: It's sort of taking -- owning your own insanity and running with it and making money off of it, you know?

COLLINS: All right, B.J., I think I'm with you on this one.

Meanwhile, a couple of new movies are coming out this weekend.

SIGESMUND: Yes.

COLLINS: We're talking about "The Bourne Supremacy," Matt Damon. And the other movie...

SIGESMUND: "Catwoman."

COLLINS: "Catwoman," all about Halle Berry...

SIGESMUND: Yes.

COLLINS: ... and the cat suit.

SIGESMUND: Exactly. Well, let's talk about Halle Berry and "Catwoman" first.

COLLINS: OK.

SIGESMUND: This has nothing in common with the Michelle Pfeiffer Catwoman that we saw in the "Batman" movie in the early '90s. This is a totally new concept.

Halle Berry an ad director at a cosmetics company...

COLLINS: Of course.

SIGESMUND: ... who one day stumbles upon the secret of their new makeup, which is that it, A, disfigures women, and, B, gets them addicted to the makeup. And she gets killed because -- she gets killed because of this knowledge. But then a mysterious Egyptian cat brings her back to life as a half-feline, half-hybrid.

COLLINS: Come on.

SIGESMUND: And she's out to wreak havoc on her killers, which include Sharon Stone.

SHAW: It's such a horrible story. I mean, Nicole Kidman turned this down. Like, this is the worst plot for a movie I have ever heard in...

COLLINS: Why did she pick it up?

SHAW: Twelve and a half million.

(CROSSTALK)

COLLINS: Oh, is that all.

BERNARD: I want to know why it's taking years and years to put a decent plot together for "Superman," right? And they just threw this together, and it needs some work.

SIGESMUND: Well, four writers wrote this movie. The rule of thumb should be the more writers on a script, the worse it's going to be. There are four writers on this.

COLLINS: Yes. Too many cooks in the kitchen.

SHAW: And she doesn't show up in the cat suit until half an hour into the movie, which is -- that is really the only people -- the only reason...

COLLINS: A lot of the guys...

SHAW: ... that people even want to go see that movie to begin with.

COLLINS: ... yes, are gone by then, right?

SHAW: Exactly.

COLLINS: Sarah Bernard, B.J. Sigesmund, and Jessica Shaw, thanks, as always, to you guys on this Friday -- Bill.

HEMMER: All right, Heidi. A break here in a moment. A piece of Americana may be in trouble. We'll look at that in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Forty-five minutes past the hour. Back to Fredricka, watching the news for us today.

Good morning, Fred. WHITFIELD: Good morning again to you, Bill.

Two U.S. troops were killed when their convoy was bombed in the Iraqi city of Samarra. A third soldier was wounded. Meanwhile, at least nine Iraqis were killed in Baghdad when a mini bus collided with a U.S. tank. Iraqi sources say the victims were all from the same family.

A federal judge is upholding a decision to fence off protesters at next week's Democratic national convention in Boston. The judge agreed in spirit with protesters' lawyers, saying the fence is an affront to free expression. But he ruled that it's a necessary precaution given violent protests in the past. In another ruling, the judge is allowing protesters to march directly past the convention site.

In California, jurors in the Scott Peterson double murder case were removed from the courtroom during a heated debate over a strand of hair. Lawyers argued yesterday about the admissibility of the hair apparently found with a pair of pliers on Peterson's boat. The court is in recess today. More testimony is expected on Monday.

And finally, signs of decay at one of baseball's most hallowed grounds. For the third time in under two months, a piece of concrete has apparently fallen from the upper deck of Chicago's Wrigley Field. A stadium inspection will begin today. No one has been injured in the incidents.

Now back to you, Bill.

HEMMER: If there ever a reason to keep a baseball stadium open and safe and restructured and refurbished, it's Wrigley.

WHITFIELD: Yes.

HEMMER: Thank you, Fred.

WHITFIELD: It's an institution.

HEMMER: Indeed it is.

CAFFERTY: Our producer said Fenway.

HEMMER: Fenway's great. Yankee Stadium's also. But Wrigley Field in the afternoon in July, forget it.

COLLINS: Forget about it.

CAFFERTY: So what's the problem, it's falling down?

HEMMER: Well, a piece of concrete had fallen down. And now they're looking at making sure it's safe.

CAFFERTY: I think I'm with you, Ted. Let's go to Fenway. I don't want to go to a place where there's stuff falling down. What should Congress do about the 9/11 recommendations in the report? Well, they're going to go on vacation today. That's the first thing they're going to do.

Linda writes, "All Congress wants is power. But they don't have it, we do. Whoever's in office, whoever's in office, vote them out. Party lines don't matter. Take away the power and keep taking it away until they finally listen to the people who put them there."

Brian writes, "Congress should show bipartisan solidarity to secure our nation against terrorism and have a special session devoted to 9/11 to decide on changes to be made immediately to our security and intelligence posture. Then they can go on a recess. Sometimes you have to stay late at the office. This is one of those times."

And Terry in Bay City, Michigan, "Maybe every incumbent of for reelection regardless of party should be replaced. Their replacements might then get the idea that they should reconsider their priorities."

A time was that you used to get real news at the political conventions. A lot of times we didn't know who the running mate was until late into the convention. But that's all gone now, and some say the conventions are nothing more than long, empty advertisements, a chance for that soft money to cuddle up to the candidates.

We'll talk about that this weekend on "IN THE MONEY," a tidy little business program that airs Saturday at 1:00 and Sunday at 3:00 her on CNN.

And you're going up there to cover that.

HEMMER: Yes, I'll be there.

CAFFERTY: You know, some people say they ought to just do away with them.

HEMMER: There was a lot of attention a couple of months ago, the networks across the country saying they weren't going to give as much attention this time around. But wait till you see what happens. A lot of times, these conventions take on a life of their own. Once they get started, the momentum starts to build, and everybody gets drawn into it.

CAFFERTY: And since you're up there for a whole week, you hope that happens, don't you?

HEMMER: I'm telling you. (UNINTELLIGIBLE) Fenway.

(CROSSTALK)

(LAUGHTER)

COLLINS: All right. Thanks, Jack.

One of the nation's largest theater companies is going private. With that, and a check of the market, Carrie Lee is live at the Nasdaq, "Minding Your Business" this morning.

Carrie, hello.

CARRIE LEE, CNN CORRESPONDENT: Hi, Heidi.

Well, selling really the name of the game on Wall Street. Red arrows across the board. Technology companies really taking a big hit. And that's mainly because of Microsoft.

The software giant reported fourth quarter results, beating the street on sales expectations. Sales up 15 percent in the recent quarter. The profit estimates, or profit results, rather, fell a penny shy of Wall Street expectations. And Microsoft is lowering its profit outlook for 2004. And that's mainly because of that $75 billion cash shareholder give-back (ph) plan announced early in the week.

No such thing as free money. So Microsoft shares trading lower by 2.5 percent right now. That's weighing on the Dow.

The Dow is down 49 points right now. And the Nasdaq is down 21 points. That's a decline of over one percent on the Nasdaq.

Another thing weighing on techs, Amazon.com also out with profits late last night, also missing the Wall Street estimate by a penny. So Amazon shares are down 7 percent.

Now, on to that movie deal, we're talking about AMC Entertainment. The company is looking into selling itself for $2 billion. So this will no longer be a publicly-traded company if regulators approve it, going back to the private market. And shareholders are going to get $19.50 a share.

So this caused an 11-percent jump in the stock yesterday. It doesn't look like it's open for trading yet. It finished at 1,910. We'll see what it does today.

Heidi, back to you.

COLLINS: (UNINTELLIGIBLE) all right. Carrie Lee, thanks so much for that.

Still to come this morning, our weekly "Extra Effort" segment. Today, we'll tell you about a cabby who gave up a fortune and became a hero for it.

Stay with us.

(COMMERCIAL BREAK)

(WEATHER REPORT)

COLLINS: A New York City cab driver is being hailed for his honesty after finding a treasure trove in his back seat. He is the focus of our "Extra Effort" segment this week.

Here's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): It was a night on the town with friends. Lawrence Policastro had dinner and drinks, then hailed a cab and headed out for more.

LAWRENCE POLICASTRO, LEFT VALUABLES IN CAB: We got out. And we tipped the cabby. And we went into the Mercury Lounge, and we ordered some drinks. And all of a sudden it just -- "Oh, my god, where is my backpack?"

CARROLL: This is what was inside: black pearls, $76,000 worth. Policastro picked them up earlier that night as part of a business venture.

POLICASTRO: I was pretty sure that it was left in the cab and gone forever.

NESTOR SULPICO, CAB DRIVER: When I opened it up, I -- lo and behold, I saw black pearls right there.

CARROLL: Nestor Sulpico was the cabby who picked up Policastro that night.

SULPICO: It's a treasure rove right there.

CARROLL: Buried in the treasure, the owner's cell phone. Sulpico used it to find the rightful owner.

SULPICO: I called the phone right away.

CARROLL: Sulpico says he was never tempted to keep the jewels, even though he's struggling to make money to send home to his daughter in his native Philippines.

SULPICO: So I believe that what I did, that I did was right.

CARROLL: The children in his Bronx neighborhood think so, where he's become a local celeb. Policastro was so grateful, he rewarded Sulpico with $500 and set up a fund to help Sulpico get out of his cab and back to nursing school, his dream.

POLICASTRO: It makes you feel good about human kind, and that's how it's life changing.

SULPICO: Oh, I feel very, very good. I mean, it cannot be bought by money.

CARROLL: It seems nice guys can finish first after all.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

COLLINS: Good guy. The cabby who says he's been mugged twice since December says his new good fortune is his reward. We're going to take a quick break. Be back in just a moment.

(COMMERCIAL BREAK)

HEMMER: Hey, we've got to run. Thanks for with being with us today. And see you on Monday from Boston. You guys have a great weekend.

CAFFERTY: Safe trip.

COLLINS: You have a great weekend.

HEMMER: "IN THE MONEY" this weekend.

CAFFERTY: Saturday, 1:00, Sunday at 3:00.

HEMMER: Who could ever miss it? I mean, how could we? How could we even think about it?

CAFFERTY: Get your TiVo thing out there.

COLLINS: I'll be there, watching from the Hamptons.

HEMMER: Here's Fredricka at the CNN Center.

Good morning, Fred. Have a great weekend.

WHITFIELD: Hello again. You all have a great weekend as well.

HEMMER: All right.

WHITFIELD: Good morning to everyone from the CNN headquarters in Atlanta. I'm Fredricka Whitfield in for Daryn Kagan.

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 July 23, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. After a controversy with the NAACP, the president today reaching out to African-American voters when he speaks before the Urban League this morning.
Senator John Kerry launching a campaign march that will lead him eventually to Boston and the DNC.

And strange new twists from the case of a missing Utah woman. What her husband did before and after she went missing.

All ahead this hour here on AMERICAN MORNING.

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

HEMMER: Good morning, everyone. Nine o'clock in New York. Soledad at home resting and waiting. And Heidi Collins is not. She's here with us.

Good morning.

HEIDI COLLINS, CNN ANCHOR: I'm still waiting, though, too.

HEMMER: Yes, you are? For what?

COLLINS: Her family's waiting, everybody's waiting.

HEMMER: Yes?

COLLINS: For babies.

HEMMER: OK.

COLLINS: For her babies.

HEMMER: That's right. That's what I'm talking about.

COLLINS: OK. Woo.

HEMMER: Got that cleared up.

New polls show a dead heat between the president and Senator John Kerry in this election. Both candidates have a big day ahead of them. We'll check in with a report on both campaigns in a moment, hear the campaign calendar momentarily. COLLINS: Also, how are the families of 9/11 victims responding to the work of the commission and their recommendations? We'll talk to Carie Lemack, whose mother was killed on September 11.

HEMMER: Also, that new aircraft carrier, Ronald Reagan, coming home today for the first time today. Six-thousand Navy personnel onboard. Looking forward to that. We've got a guy onboard ourselves. We'll get to it on the West Coast here this hour.

COLLINS: Jack Cafferty now.

JACK CAFFERTY, CNN ANCHOR: Thank you, Heidi.

The 9/11 Commission report 20 months in the making, two-and-a- half million pages of documents, 1,200 people interviewed. They came up with a list of recommendations, here's some ways we can make the country safer. Congress, they're going on vacation today and say they won't have time to fool with this till sometime next year. Am@cnn.com.

HEMMER: And the beat goes on. Thank you, Jack.

To the campaign trail now. President Bush traveling to Detroit this hour, where he'll talk at the National Urban League Conference before heading back to his ranch in Texas. Kathleen Koch on the front lawn this morning starts our coverage this hour.

Good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Bill.

It's a short trip by President Bush this morning to the battleground state of Michigan, his 16th visit to the state as president. It's a state that the president narrowly lost by just five percentage points to Al Gore back in 2000. But President Bush's focus this morning will be on mending fences with the African-American community -- community. He'll be speaking in Detroit to the National Urban League after refusing an invitation to appear at last week's NAACP convention in Philadelphia.

Now, Democratic challenger John Kerry did speak to both groups, and at each venue. He criticized the president yesterday, telling the National Urban League that Mr. Bush has "a failing record on African- American opportunity." Now, of course, the White House is taking issue with that, insisting that Mr. Bush is an inclusive leader with a proven record of reaching out to all Americans, and working with African-American leaders on issues like education reform and minority home ownership.

The administration officially saying that it was a scheduling problem that forced President Bush to turn down that invitation to speak to the NAACP. However, the president himself said that his relationship with the civil rights group is "basically nonexistent."

And there are some in Republican circles who believe that it is basically a waste of time for the president to make these appearances since, traditionally, for decades, the majority of African-Americans have voted Democratic. However, in a close election, and in a battleground state like Michigan, the president believes that every single vote counts.

And Bill, as you mentioned, it's shaping up to be a very close race this year. The latest poll numbers from the latest CNN-"USA Today" Gallup poll do show that John Kerry is leading President Bush by just one percentage point, with Ralph Nader drawing about 4 percent of likely voters.

Now, after the president does leave Detroit this morning, he heads to his ranch in Crawford, Texas, where he'll be relaxing for nearly a week, while the Democrats take the national spotlight at their convention in Boston. Back to you.

HEMMER: Going back to the year 2000, more than 90 percent of African-Americans going with Al Gore as well. Kathleen, thanks.

President Bush's speech to the Urban League set to start at 10:00 a.m. Eastern Time. Live coverage in Detroit when that happens -- Heidi.

COLLINS: The Democrats take center stage Monday, as we have said, when they open their presidential nominating convention in Boston. And in a very tight race, they'll be going after those much sought after undecided votes. Kelly Wallace live from Boston now this morning with the very latest.

Good morning once again, Kelly.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning again, Heidi.

Well, as Kathleen's just mentioning, John Kerry heading into this convention with polls showing this race remaining neck and neck. This means decisive problems for President Bush over the past few months, the selection of John Edwards. John Kerry has not been able to pull out in front. Well, Democrats are hoping that will change after John Kerry's speech here and all the razzle-dazzle here in Boston.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): Racing against the clock to transform the home of Boston Celtics and Bruins into center stage for the Democratic team, while the party's quarterback, John Kerry, and his running mate, John Edwards, begin a pre-convention cross-country blitz in Colorado, where Kerry was born. Yesterday, Senator Kerry, reacting to the September 11 report, said President Bush has not done enough since the attacks to keep America safe.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We must do better. And there's an urgency to our doing better. We have to act now.

WALLACE: But Senator Kerry still trails President Bush significantly when likely voters are asked who would do a better job handling terrorism. In the latest CNN-"USA Today" Gallup poll, 56 percent chose the president, 38 percent backed Mr. Kerry. And the poll also showed this race a virtual dead heat, with 83 percent saying they've made up their minds. Only 17 percent said they could still switch. And so the senator heads into his convention hoping to introduce himself to those crucial swing voters while Kerry's opponents say they won't cede the entire city to the Democrats.

JIM DYKE, RNC: We're going to be here to make sure that people actually know John Kerry's real record, or at least to the -- to the best of our abilities, given that we're sort of swimming upstream here in Boston.

WALLACE: And this not-so-warm welcome directly across the street from the FleetCenter, the Halftime Pizzeria, one of several businesses inside a strict security zone, deciding to close down convention week.

(END VIDEOTAPE)

WALLACE: And security expected to be a big story at this convention, the first since the September 11 attacks. Right now, the only credible threat we're hearing about, law enforcement sources telling CNN they have a credible threat that a domestic group or individuals could be plotting an attack against media vans at this event -- Heidi.

COLLINS: Kelly, also, talking about the security now, that highway right behind you, a very busy highway there, Highway 93, closing, right?

WALLACE: It is, exactly. On this bridge behind me, it is Highway 93. It will be closing for the duration of convention week, which is really a traffic nightmare for a lot of Boston residents and workers.

There's also a huge security perimeter all around the FleetCenter. We mentioned that one business in our story there. Businesses deciding to close. They were allowed to stay open, Heidi, but they say just getting to work, they getting -- those businesses getting to work, their staff, it would just take them hours and hours, so they're deciding the hassle's not worth that.

COLLINS: All right. Well, Kelly Wallace, thanks so much for updating us on all of that.

And AMERICAN MORNING will be live from the Democratic convention in Boston beginning Monday, 7:00 a.m. Eastern.

HEMMER: The 9/11 Commission yesterday saying -- quoting now -- "We are not safe." Commissioners believe a dramatic overhaul of intelligence is critical as long as the U.S. faces the threat of terrorism.

(BEGIN VIDEO CLIP)

THOMAS KEAN, CHAIRMAN, 9/11 COMMISSION: We expect further attacks. Against such an enemy there can be no complacency. This is the challenge of our generation. As Americans, we must step forward and we must meet that challenge.

(END VIDEO CLIP)

HEMMER: Thomas Kean from yesterday. The panel recommends a number of changes. Among them, bringing together the counterterrorism efforts of the CIA, the FBI, Defense and Homeland Security departments under a single roof, naming a national intelligence director to oversee all those agencies and report directly to the White House, and forming permanent oversight committees for homeland security in each House of Congress.

Carie Lemack's mother was killed on 9/11. She pushed for the government investigation that led to yesterday's report. Carie's back with us here live in Boston this morning.

And good morning to you.

CARIE LEMACK, MOTHER KILLED ON 9/11: Good morning, Bill.

HEMMER: On the day after, what do you take away from what came out yesterday?

LEMACK: Well, I think we're recharged. We worked very hard to get the commission, and we've been monitoring commission ever since its inception. But today we know that we now have these recommendations, and it's our job to make sure that they're implemented.

We saw 10 commissioners yesterday who were all fully backing the recommendations. And I have to believe that they have looked at the evidence. They've made 1,200 interviews, looked at 2.2 million documents. If these aren't the best recommendations out there, I challenge anyone with something better to come forward.

But the worst thing we can do is to do nothing. So I think that it (UNINTELLIGIBLE) all of Congress, the president and all Americans to make sure that we make America safer, because now it's in our hands

HEMMER: So then the question is, does anything get done? Bob Kerry, commission member, talking with Heidi last hour. Here's how he answered that question.

(BEGIN VIDEO CLIP)

BOB KERREY, 9/11 COMMISSION MEMBER: I'm just not optimistic that it's going to happen anytime soon unless the American people rise up and ask their congressmen, their senators and their president. Look, we've got to get these changes in place, because if we don't, the country is -- simply is not going to be as safe as it needs to be.

(END VIDEO CLIP)

HEMMER: You heard his words, Carie. He's not optimistic. How does that hit you?

LEMACK: Well, it makes me sad. We also heard from the speaker of the House that he's not optimistic things will get done. But it's that kind of attitude that's going to make Americans less safe.

We've been told time and time again that we're -- there's going to be an attack perhaps before the election. Why are we going to wait until after the election to make changes that could stop that attack?

I don't understand why Congress won't take this up, the president as well. He's going to Crawford, Texas. The Congress is going on vacation. We need to see some more urgency.

You know, after September 11, on September 12, and in the weeks ensuing, people asked what can we do to help. Well, today we have an answer. A 600-page answer, but it's a good answer.

And I ask for everyone, we need everyone's support. They need to contact their senators and congressmen. They need to let people know that this is important to them because it could help to save them or their loved one's lives.

HEMMER: You know, Carie...

LEMACK: I don't want to have to look any other family member in the eye if something does happen and we haven't done anything to make these changes.

HEMMER: In the effort to get your own life back, and get it back on track, how does this report stack up now in your own healing process?

LEMACK: Well, my mother is still murdered. But I know today, just as I've known for the past almost three years now, that one thing that I can do to make sure her murder wasn't in vain is to make changes so no one else goes through this.

The pain of losing my mom, it's never going to go away. And it's still here today. But at least I can be constructive. And I think this commission's report, these recommendations, are so far the best thing we can do.

HEMMER: Carie Lemack in Boston, thanks -- Heidi.

LEMACK: Thank you.

COLLINS: Questions are swirling in Utah about the behavior of Mark Hacking. His wife, Lori, has been missing since Monday. Ted Rowlands is live in Salt Lake City now with the very latest on the case.

Ted, hello.

TED ROWLANDS, CNN CORRESPONDENT: Hello, Heidi.

The search efforts here in Salt Lake City are scheduled to begin within the next hour. Family members are hoping that the public will come out in earnest, despite the latest reports concerning Lori Hacking's husband, Mark. According to the "Salt Lake City tribune" here, Mark Hacking purchased a mattress on Monday morning just before calling police. He had told police, according to the "Tribune," that he had been jogging the three-mile trail that his wife was last seen jogging on before calling police. This report flies in the face of that.

Of course, this, of course, also coming in addition to the revelation that he had an intricate series of lies concerning his graduation from college and his trip to medical school in North Carolina. One police spokesperson called him a person of interest, and said that the lies about medical school were "the tip of the pyramid."

That said, family members said they are focusing on trying to bring Lori Hacking home, and they're hoping that the public will come out here this morning and help. She's now been missing for four days. This is the fifth day of search efforts looking for 27-year-old Lori Hacking -- Heidi.

COLLINS: All right. Ted Rowlands, thanks so much for the update on that.

As you can imagine, the family very much concerned about Lori Hacking, wanting to know where she is. Been gone for a couple of days now. Twenty-seven years old, five weeks pregnant. Her husband, Mark, now in the hospital.

So we want to go ahead and talk with family members. We have the cousin of Lori Hacking with us. Kathy Black, she is there, along with Chris Smart, the uncle of Elizabeth Smart.

Thanks so much for joining us this morning, to the both of you.

Kathy, I'd like to begin with you. What is your family saying about some of the new developments that we have just heard, once again, from our correspondent, Ted Rowlands, there about Mark?

KATHY BLACK, LORI HACKING'S COUSIN: Well, right now, we haven't been focusing as much on what the media reports have been. As you can well imagine, we've been here at the volunteer center as much as possible, and really focusing more on what we can do to find Lori, and trying to get the community out in support, and help them understand that whatever they might be hearing in the media is not -- is not of the focus. What the focus is, is to come out and find Lori.

COLLINS: When was the last time you spoke with her?

BLACK: I spoke with Lori -- actually, Lori and Mark came out to visit me in New York City where I live last year, last fall. But I have been in constant contact with her via e-mail.

When they were thinking about moving to the East Coast, they were looking to me to help them find out, you know, what the cost of living is like, you know, what they could expect living on the East Coast. And they were excited to move. And the last e-mail I got from Lori was approximately a week ago, and she was saying how excited they were because they would be close and could come visit me in New York more often.

COLLINS: Nothing seems strange to you about that e-mail in the slightest?

BLACK: No.

COLLINS: OK. What sort of...

BLACK: Again, she was...

COLLINS: Go ahead.

BLACK: Again, I was just going to say, she was very excited about the opportunity to -- to move to the East Coast and to -- to be near. Lori loved to travel -- loved to travel, and she's a very adventurous girl. And just, you know, looking forward to some new -- you know, some new, exciting challenges in her life.

COLLINS: Are you getting a lot of help from the community? You talked about keeping the focus on Lori and finding her.

BLACK: We have been getting -- the first day there was over 1,200 volunteers that came out to search for Lori. We've been getting lots of great donations from people. But we still need their help.

A number of the volunteers have -- have dropped off, and we need them to understand that Lori is still out there. She's still missing. And we need their help.

COLLINS: Understood. All right. Thanks so much to you, Kathy.

And Chris, I want to ask you a couple of questions now.

CHRIS SMART, ELIZABETH SMART'S UNCLE: Sure.

COLLINS: It wasn't very long ago when you were searching for your own niece. This has got to be tough for you as well.

SMART: You know, we are just so grateful that we had such a fantastic outcome in our search. And we are just trying to aid the Hackings family any way that we can in helping put together the search and carry it out, and encourage the public to please come out and help us find Lori.

COLLINS: I imagine you are really...

SMART: And it...

COLLINS: I'm sorry. I imagine you're really very much able to offer that sort of positive reinforcement to the family. Is that true?

SMART: Yes. You know, we try to go ahead and just let them, you know, keep focused at -- you know, so far, we haven't seen anything, you know, that wouldn't say that she's out there. And so, you know, just keep the focus that we want to bring her back. COLLINS: All right. Well, to the both of you, thanks so much for being with us this morning. We offer you our very best. And good luck in this search, for sure. Chris Smart and Kathy Black, thanks so much.

BLACK: Thank you.

SMART: Thank you.

HEMMER: About 16 minutes now past the hour. A check of the other news this morning. We want to start with Iraq. Fredricka Whitfield has all of that at the CNN Center.

Tough news here, Fred. Good morning.

FREDRICKA WHITFIELD, CNN ANCHOR: Hi there, Bill.

Two U.S. soldiers have been killed by a roadside bomb in Iraq. A military convoy was struck in the Iraqi city of Samarra, north of Baghdad. A third American was also injured in the blast.

Officials in Turkey have ruled out sabotage as a possible cause for the derailment of a high-speed train. At least 36 people were killed and some 80 others injured yesterday when the train jumped the tracks on its way to Ankara from Istanbul. The train's engineers are being questioned now.

The House of Representatives is taking on same-sex marriage. Lawmakers yesterday voted to bar federal courts from ordering states to recognize marriages approved in other states. The Bush administration supports the bill, which faces an uphill battle in the Senate.

And there's been a reversal in the Kobe Bryant sexual assault case. The judge now says findings from a physical exam of Bryant hours after he was first accused will be allowed to be used at trial. That reverses an earlier decision which would have suppressed those results. The reversal came after Bryant's defense filed notice that it would introduce the evidence.

And finally, the former husband of U.S. Olympian Marion Jones is claiming she used banned performance-enhancing drugs. "The San Francisco Chronicle" quotes C.J. Hunter as saying Jones was using the drugs when she won five medals at the 2000 Sydney games. Jones' attorney calls Hunter an embittered former spouse who was "seeking to exact his revenge by telling lies to the government."

And now back to you, Bill.

HEMMER: All right, Fredricka. Thanks for that.

Back to Jack now, "Question of the Day" here in New York.

CAFFERTY: Thank you, sir.

The 9/11 Commission report is out. Recommendations, everything, what to do to make the country safer. What happens next? Well, nothing, I guess.

Congress says it won't be able to get to this till next year. Much too busy. No time this year. Legislative agenda's already full. Got this gay marriage thing, big national crisis.

Who sets the agenda? Well, Congress itself does, of course. So if they want to change it, they can damn well change it. But, no, no.

And they are going on vacation today. We mustn't let terrorism get in the way of, you know, a little fun and sun in the sand.

It's mind-boggling. It's mind-boggling. These clowns are going away on vacation.

What should the Congress do about the 9/11 report? I'm not trying to steer your answers here, of course.

Jane in Philadelphia, "Congress should immediately go into special session instead of summer vacation, which would not only begin to make us safe, but would also put Americans on war footing. We all need to be reminded, we're in a real war here, especially our leaders."

Amen, Jane.

Frederick in Spencer, Indiana, "These people have forgotten they're public servants. All they're interested in is gorging themselves at the public trough. I for one will not vote for any incumbent. Maybe that way we can restore an environment of service and trust."

"The question is not what Congress should do about the 9/11 recommendations, but what voters should do." This is from Virginia. "All of our high-placed elected officials should be given the opportunity to pursue other interests."

And Ron in Luray, Virginia, "Stop bashing the Congress. These guys make more money and have more perks than any legislative body in history. And they need their time off to spend that money and use their perks in order to get reelected. Or, on the other hand, let's start the revolution against these fat cats come November."

HEMMER: The DNC is -- the Democratic convention in Boston is scattered with security. They're going to have them all over Manhattan in about a month...

(CROSSTALK)

CAFFERTY: Yes. Why is...

HEMMER: For the first time since I've been in New York in over two years, yesterday on the subway, I heard that announcement, keep your eye out for suspicious packages, report anything that you see that does not look right.

CAFFERTY: You know, I hope to god nothing happens. But what will the explanation of these boobs down there be if something does, and instead of addressing these recommendations, well, we had to debate gay marriage thing, and we had to go on vacation.

I mean, how -- if something happens, how can they look anybody in the eye and say anything? I mean, it's just -- it's mind-boggling.

Where are they going? You should be in special session. You should do something. People are trying to kill us. You know what I'm saying?

HEMMER: You heard Bob Kerrey. He's not optimistic.

CAFFERTY: Yes. And he knows how that thing works down there.

HEMMER: Thank you, Jack.

CAFFERTY: Yes.

COLLINS: All right, Jack. Thanks so much.

We're going to get a check on the weather now. Chad Myers is at the CNN Center with the very latest forecast.

(WEATHER REPORT)

COLLINS: All right, Chad, thanks so much for that.

HEMMER: So the airports are good at 9:21 in the morning.

COLLINS: Yes. Yes. Well, there's a whole day ahead, isn't there?

HEMMER: That's right.

Thank you, Chad. Talk to you a bit later this hour.

Also, in a moment here, looking at a dead heat for the race for the White House now. Pollsters say that says something very important about voters. We'll talk to Bill Schneider, who knows a thing or two about this in a moment.

COLLINS: Also ahead, a look at a new mode of transportation that's putting some New Yorkers in seventh heaven.

HEMMER: And the cabby who passed up a fortune and went the "Extra Effort" to help someone out still to come this hour on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Right about 25 minutes past the hour. Lance Armstrong has his bike, and he knows it all too well. This morning, Jeanne Moos finds a whole new way, though, to cycle around New York City.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): You won't see this bike at the Tour de France.

UNIDENTIFIED MALE: What is it, sir? What is it?

MOOS: This bike seats seven. And if that doesn't make you wonder, wonder woman in drag might.

UNIDENTIFIED MALE: Hi, ladies.

MOOS: The seven-seat bike is turning heads in Times Square. Even Spider-Man's head.

UNIDENTIFIED MALE: Yeah! Hold on tight, guys! Whoo!

MOOS: There are about a dozen of these seven-seaters in this country. The ones in Times Square cater to tourists.

UNIDENTIFIED FEMALE: I love it! This is awesome!

MOOS: One person steers, all seven pedal. The inventor is an American artist living in Amsterdam. Eric Stoler (ph) is known for creations he calls urban UFOs, like the Light Mobile, a Volkswagen Bug with computerized light patterns, and the Bubble Heads, wearing Plexiglas spheres. And even a Bubble Boat, with its top made out of a grain silo. It sort of makes a seven-seat bike seem tame.

UNIDENTIFIED MALE: This is the SUV of bicycles.

MOOS: Owner Don Dimiti (ph) paid $16,000 for what's called the Conference Bike, and hopes to acquire a fleet of 10.

UNIDENTIFIED MALE: I've got hydraulic brakes down below it...

MOOS: It's got what's called a universal joint, one gear, front- wheel steering.

(on camera): Have you taken out any pedestrians ever?

UNIDENTIFIED MALE: Only the ones I didn't like.

UNIDENTIFIED FEMALE: Watch out, girl.

UNIDENTIFIED FEMALE: Get over yourself, buddy.

MOOS (voice-over): Despite a couple of close calls...

UNIDENTIFIED MALE: Oh, sorry about that. Are you all right?

MOOS: ... Paul Creshi (ph) says he's never had an accident.

UNIDENTIFIED FEMALE: You were going to hit that guy.

MOOS (on camera): You feel the bump.

UNIDENTIFIED MALE: Oh, yes, you do.

MOOS (voice-over): Almost as eye-catching as the bike... UNIDENTIFIED MALE: Oh, my gosh. Make some noise.

MOOS: ... is a driver in drag named Sybil (ph).

UNIDENTIFIED MALE: Pedal forward, honey. Forward.

MOOS: On a bicycle built for seven, you can even powder your nose...

UNIDENTIFIED FEMALE: It's better than the naked cowboy.

MOOS: ... though we recommend against riding the seven-seat bike naked.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

HEMMER: See what you get in this city? It's 24-hour entertainment.

COLLINS: Yes. I've seen him a couple of times.

HEMMER: Yes?

COLLINS: I've actually seen the bike, too. So does that mean that I really can say (UNINTELLIGIBLE) now?

HEMMER: I think you're inducted.

COLLINS: I'm a native. Not even close. All right.

Still to come this morning, TGIF. It is time for "90-Second Pop." Smart move or big, fast risk? Kirstie Alley is back with a show called "Fat Actress."

Plus, Halle Berry reborn as a cat. And Matt Damon just plain "Bourne" again. It's "Catwoman" versus "The Bourne Supremacy" in "90- Second Pop."

(COMMERCIAL BREAK)

HEMMER: Back here in New York City, on Wall Street, we are open for trading on a Friday morning. The Dow starting today at 10,050, finished at about four points in positive territory yesterday.

Nasdaq market site, still under 1,900; 1,889 is your opening mark. Descent day yesterday, 15 points to the positive.

Welcome back, everybody -- 9:30 here in New York. And good morning again.

COLLINS: Good morning to you, everybody.

The latest polls, you know, don't show a clear advantage for either candidate, but they do show something interesting about the voters. Bill Schneider is breaking down the numbers and he's seeing a trend that could make for a very interesting Election Day. But we kind of already suspected that.

HEMMER: It is close out there, right?

"90-Second Pop" in a moment here, talking about the movies you should not see this weekend. I think this one is on their list: Halle Berry's new film "Catwoman." We'll talk about that in a moment.

COLLINS: Call it kitty litter.

HEMMER: Yes.

COLLINS: Not very good. All right.

To the news now this morning. Douglas Faneuil, whose testimony helped to convict Martha Stewart and her broker, Peter Bacanovic, will be sentenced this morning. Mary Snow has the story.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): He's the baby-faced stockbroker's assistant whose phone conversation with Martha Stewart changed her fate. Doug Faneuil was the insider the government needed to make its case against Martha Stewart and stockbroker Peter Bacanovic. Legal experts say without Faneuil, conviction wasn't a sure thing for prosecutors.

IRA SORKIN, SECURITIES LAWYER: Would they have been able to go to trial? Sure. But would they have been able to obtain a conviction? Probably not.

SNOW: Faneuil handled Stewart's sale of ImClone's stock on December 27, 2001. He initially backed up the story by his boss, Bacanovic, and Stewart that there was an agreement to sell Stewart's stock once it fell below $60. He later broke ranks, and told investigators there was no such agreement. He testified the real reason for the sale was that ImClone founder Sam Waksal was trying to dump all his shares, and that he, Faneuil, was told to call Stewart and inform her.

SORKIN: It's always in the government's best interest in a so- called white collar case to have an insider, someone who was there, someone who can talk about what happened, because generally white collar cases are not done openly and notoriously like a bank robbery.

SNOW: He made a deal with investigators, admitted lying to them, and testified. Defense lawyers attacked his credibility, saying he was star-struck with Stewart, and that he once bragged in an e-mail "Baby put Ms. Martha in her place." Barred from the securities industry, Faneuil now works at in a Manhattan art gallery and lives in Brooklyn. While he tries to live in obscurity, he'll have a hard time shaking his legacy.

JACK COFFEE, COLUMBIA UNIVERSITY: He was critical to the case. So it may be his epitaph that he was the man who sent Martha Stewart to prison.

SNOW (on camera): For telling his story, Faneuil, in exchange, gets leniency. His lesser charge of a misdemeanor is punishable by up to a year in prison. But legal experts expect he'll be put on probation.

Mary Snow, CNN Financial News, New York.

(END VIDEOTAPE)

COLLINS: Stewart and Bacanovic have been sentenced to five months in prison and five months home confinement.

HEMMER: Now to elections, the political season. Democratic convention just three days away. That race now just about as close as it can get.

The newest CNN-"USA Today" Gallup poll of likely voters has John Kerry a percentage point ahead of President Bush, 47 to 46, with a 3.5 percent margin of error. With it that close, already in Boston for us, here's Bill Schneider this morning.

Good morning, Bill. You are there...

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning, Bill.

HEMMER: ... in position and ready to go. Very interesting numbers. If you read deep into these -- the polling numbers that came out yesterday, asked whether or not you're more enthusiastic about voting this year than usual, when compared with the year 2000 and compared with the year 1996, look at that figure. Sixty percent. What does that say to you, Bill?

SCHNEIDER: Well, you know, this election is split 50-50, just as the 2000 election was split. But that can happen two ways.

In 2000, this -- the 50-50 split was like, whatever. People were sort of indifferent. This year, they're raring to go. It means we're pumped. And take a look at the difference between the parties.

In 2000, the Republicans were more enthusiastic about voting than the Democrats were, 46 to 36. But this year, the Democrats are rearing to go. Remember Florida. Two-thirds of Democrats are saying they're more enthusiastic than usual. Republican enthusiasm is up over what it was, but Democratic enthusiasm is really up.

HEMMER: Which could tell us a lot about voter turnout come the 2nd of November.

SCHNEIDER: Yes, indeed.

HEMMER: Back in the polling numbers, too, asked about whether or not the Bush administration deliberately misled the public on WMD, 45 percent say yes, 52 percent say no. Concentrate on that word "deliberately." Define that for us in this polling. SCHNEIDER: Deliberately misled is -- sounds to me like a euphemism for lied. That is a growing number of Americans over the past two years who are willing to say that the Bush administration lied to the American people about weapons of mass destruction.

Emphasis on the word "deliberately," which is in the poll. That's almost half of Americans have now reached that conclusion. That is a very, very serious judgment on the Bush administration.

HEMMER: So then on the issues, Bill, between Bush and Kerry, here's how they stack up. On terrorism, Bush a clear leader here. On Iraq, still a leader. On the economy, it flips to Kerry. So, too, for health care by a rather substantial margin.

How do the two parties then go about their election season knowing the Democrats kick off Monday where you are?

SCHNEIDER: Well, what the Democrats have to do is play up, of course, their advantage on domestic issues. But right now, the most serious concerns are national security and, of course, the engagement in Iraq.

Kerry is going to go to great lengths to show that he can be as strong and as resolute as President Bush after all those charges of flip-flopping. And he's going to have to make the point that he is a man who says what he believes. Because Americans, first and foremost, want to be sure that whoever they elect president is going to protect the American people and keep them safe.

HEMMER: Thank you, Bill. We'll see you on Monday, all right?

SCHNEIDER: OK.

HEMMER: Bill Schneider in Boston.

AMERICAN MORNING is live 7:00 a.m. Eastern Time, starting to be there throughout the week. Monday, Bill Richardson, Ted Kennedy, Joe Lieberman our guests. On Tuesday, Teresa Heinz Kerry will be here, Ben Affleck, and a cast of others.

COLLINS: Quite a lineup.

HEMMER: They're all coming out of the woodwork, let me tell you.

COLLINS: Yes. They heard you were going to be there.

Still to come...

HEMMER: Well, we're all going to be there.

COLLINS: Still to come this morning, why go to someone else's movie theater when you can buy your own? We're "Minding Your Business" this morning.

HEMMER: Also, talking about movies, "Catwoman" tries to scratch her way to the top. But does the movie belong to the kitty litter, as Heidi suggests?

COLLINS: Well, it's not quite my line.

HEMMER: Ooh. To the litter box in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Well, in guess you haven't guessed, it's time for our Friday edition of "90-Second Pop" with our stars of the show, Sarah Bernard of "New York" magazine, B.J. Sigesmund of "US Weekly," and Jessica Shaw of "Entertainment Weekly" magazine.

Thanks, guys. Nice to see you on a Friday.

JESSICA SHAW, "ENTERTAINMENT WEEKLY": You too.

COLLINS: "Fat Actress" with Kirstie Alley, does anybody want to watch this show, do you think?

SHAW: Personally, I do.

COLLINS: Yes?

SHAW: I think this is the best career move for her to make. She's doing a show for Showtime, "Fat Actress," based on her own issues with weight and love and family and work.

SARAH BERNARD, "NEW YORK" MAGAZINE: This is a major problem.

COLLINS: Reality show or not?

SHAW: No, it's going to be a scripted show. And they start shooting in September. And I think, you know, more power to her. There are pictures in the tabloids of her every other week, you know, gobbling down In and Out burgers in her car.

B.J. SIGESMUND, "US WEEKLY": Yes. I have to say, like, I don't think it's very promising, and I don't think many people are going to be watching this show. But a good thing about it is, it has a producer from "Curb Your Own Enthusiasm." So, perhaps it's going to be better than we think.

COLLINS: A great show.

SHAW: (UNINTELLIGIBLE) from "Seventh Heaven."

BERNARD: Right.

SHAW: So, it's going to be a very weird...

BERNARD: Well, you know, I think for a while now actors have been doing this thing where when they're disgraced in some way, they go on "Saturday Night Live," like Paris Hilton did. They make fun of themselves a little bit.

(CROSSTALK) BERNARD: Right? That's kind of the formula.

SIGESMUND: But when is...

BERNARD: But this is taking it way too far.

SHAW: I think this she's...

BERNARD: I mean, this is like a cry for help.

SHAW: No, I think this is a great move.

BERNARD: This is not -- not good..

SIGESMUND: I don't...

SHAW: I think this is like doing -- this is like Larry David doing "Curb."

COLLINS: Yes.

SHAW: It's sort of taking -- owning your own insanity and running with it and making money off of it, you know?

COLLINS: All right, B.J., I think I'm with you on this one.

Meanwhile, a couple of new movies are coming out this weekend.

SIGESMUND: Yes.

COLLINS: We're talking about "The Bourne Supremacy," Matt Damon. And the other movie...

SIGESMUND: "Catwoman."

COLLINS: "Catwoman," all about Halle Berry...

SIGESMUND: Yes.

COLLINS: ... and the cat suit.

SIGESMUND: Exactly. Well, let's talk about Halle Berry and "Catwoman" first.

COLLINS: OK.

SIGESMUND: This has nothing in common with the Michelle Pfeiffer Catwoman that we saw in the "Batman" movie in the early '90s. This is a totally new concept.

Halle Berry an ad director at a cosmetics company...

COLLINS: Of course.

SIGESMUND: ... who one day stumbles upon the secret of their new makeup, which is that it, A, disfigures women, and, B, gets them addicted to the makeup. And she gets killed because -- she gets killed because of this knowledge. But then a mysterious Egyptian cat brings her back to life as a half-feline, half-hybrid.

COLLINS: Come on.

SIGESMUND: And she's out to wreak havoc on her killers, which include Sharon Stone.

SHAW: It's such a horrible story. I mean, Nicole Kidman turned this down. Like, this is the worst plot for a movie I have ever heard in...

COLLINS: Why did she pick it up?

SHAW: Twelve and a half million.

(CROSSTALK)

COLLINS: Oh, is that all.

BERNARD: I want to know why it's taking years and years to put a decent plot together for "Superman," right? And they just threw this together, and it needs some work.

SIGESMUND: Well, four writers wrote this movie. The rule of thumb should be the more writers on a script, the worse it's going to be. There are four writers on this.

COLLINS: Yes. Too many cooks in the kitchen.

SHAW: And she doesn't show up in the cat suit until half an hour into the movie, which is -- that is really the only people -- the only reason...

COLLINS: A lot of the guys...

SHAW: ... that people even want to go see that movie to begin with.

COLLINS: ... yes, are gone by then, right?

SHAW: Exactly.

COLLINS: Sarah Bernard, B.J. Sigesmund, and Jessica Shaw, thanks, as always, to you guys on this Friday -- Bill.

HEMMER: All right, Heidi. A break here in a moment. A piece of Americana may be in trouble. We'll look at that in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Forty-five minutes past the hour. Back to Fredricka, watching the news for us today.

Good morning, Fred. WHITFIELD: Good morning again to you, Bill.

Two U.S. troops were killed when their convoy was bombed in the Iraqi city of Samarra. A third soldier was wounded. Meanwhile, at least nine Iraqis were killed in Baghdad when a mini bus collided with a U.S. tank. Iraqi sources say the victims were all from the same family.

A federal judge is upholding a decision to fence off protesters at next week's Democratic national convention in Boston. The judge agreed in spirit with protesters' lawyers, saying the fence is an affront to free expression. But he ruled that it's a necessary precaution given violent protests in the past. In another ruling, the judge is allowing protesters to march directly past the convention site.

In California, jurors in the Scott Peterson double murder case were removed from the courtroom during a heated debate over a strand of hair. Lawyers argued yesterday about the admissibility of the hair apparently found with a pair of pliers on Peterson's boat. The court is in recess today. More testimony is expected on Monday.

And finally, signs of decay at one of baseball's most hallowed grounds. For the third time in under two months, a piece of concrete has apparently fallen from the upper deck of Chicago's Wrigley Field. A stadium inspection will begin today. No one has been injured in the incidents.

Now back to you, Bill.

HEMMER: If there ever a reason to keep a baseball stadium open and safe and restructured and refurbished, it's Wrigley.

WHITFIELD: Yes.

HEMMER: Thank you, Fred.

WHITFIELD: It's an institution.

HEMMER: Indeed it is.

CAFFERTY: Our producer said Fenway.

HEMMER: Fenway's great. Yankee Stadium's also. But Wrigley Field in the afternoon in July, forget it.

COLLINS: Forget about it.

CAFFERTY: So what's the problem, it's falling down?

HEMMER: Well, a piece of concrete had fallen down. And now they're looking at making sure it's safe.

CAFFERTY: I think I'm with you, Ted. Let's go to Fenway. I don't want to go to a place where there's stuff falling down. What should Congress do about the 9/11 recommendations in the report? Well, they're going to go on vacation today. That's the first thing they're going to do.

Linda writes, "All Congress wants is power. But they don't have it, we do. Whoever's in office, whoever's in office, vote them out. Party lines don't matter. Take away the power and keep taking it away until they finally listen to the people who put them there."

Brian writes, "Congress should show bipartisan solidarity to secure our nation against terrorism and have a special session devoted to 9/11 to decide on changes to be made immediately to our security and intelligence posture. Then they can go on a recess. Sometimes you have to stay late at the office. This is one of those times."

And Terry in Bay City, Michigan, "Maybe every incumbent of for reelection regardless of party should be replaced. Their replacements might then get the idea that they should reconsider their priorities."

A time was that you used to get real news at the political conventions. A lot of times we didn't know who the running mate was until late into the convention. But that's all gone now, and some say the conventions are nothing more than long, empty advertisements, a chance for that soft money to cuddle up to the candidates.

We'll talk about that this weekend on "IN THE MONEY," a tidy little business program that airs Saturday at 1:00 and Sunday at 3:00 her on CNN.

And you're going up there to cover that.

HEMMER: Yes, I'll be there.

CAFFERTY: You know, some people say they ought to just do away with them.

HEMMER: There was a lot of attention a couple of months ago, the networks across the country saying they weren't going to give as much attention this time around. But wait till you see what happens. A lot of times, these conventions take on a life of their own. Once they get started, the momentum starts to build, and everybody gets drawn into it.

CAFFERTY: And since you're up there for a whole week, you hope that happens, don't you?

HEMMER: I'm telling you. (UNINTELLIGIBLE) Fenway.

(CROSSTALK)

(LAUGHTER)

COLLINS: All right. Thanks, Jack.

One of the nation's largest theater companies is going private. With that, and a check of the market, Carrie Lee is live at the Nasdaq, "Minding Your Business" this morning.

Carrie, hello.

CARRIE LEE, CNN CORRESPONDENT: Hi, Heidi.

Well, selling really the name of the game on Wall Street. Red arrows across the board. Technology companies really taking a big hit. And that's mainly because of Microsoft.

The software giant reported fourth quarter results, beating the street on sales expectations. Sales up 15 percent in the recent quarter. The profit estimates, or profit results, rather, fell a penny shy of Wall Street expectations. And Microsoft is lowering its profit outlook for 2004. And that's mainly because of that $75 billion cash shareholder give-back (ph) plan announced early in the week.

No such thing as free money. So Microsoft shares trading lower by 2.5 percent right now. That's weighing on the Dow.

The Dow is down 49 points right now. And the Nasdaq is down 21 points. That's a decline of over one percent on the Nasdaq.

Another thing weighing on techs, Amazon.com also out with profits late last night, also missing the Wall Street estimate by a penny. So Amazon shares are down 7 percent.

Now, on to that movie deal, we're talking about AMC Entertainment. The company is looking into selling itself for $2 billion. So this will no longer be a publicly-traded company if regulators approve it, going back to the private market. And shareholders are going to get $19.50 a share.

So this caused an 11-percent jump in the stock yesterday. It doesn't look like it's open for trading yet. It finished at 1,910. We'll see what it does today.

Heidi, back to you.

COLLINS: (UNINTELLIGIBLE) all right. Carrie Lee, thanks so much for that.

Still to come this morning, our weekly "Extra Effort" segment. Today, we'll tell you about a cabby who gave up a fortune and became a hero for it.

Stay with us.

(COMMERCIAL BREAK)

(WEATHER REPORT)

COLLINS: A New York City cab driver is being hailed for his honesty after finding a treasure trove in his back seat. He is the focus of our "Extra Effort" segment this week.

Here's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): It was a night on the town with friends. Lawrence Policastro had dinner and drinks, then hailed a cab and headed out for more.

LAWRENCE POLICASTRO, LEFT VALUABLES IN CAB: We got out. And we tipped the cabby. And we went into the Mercury Lounge, and we ordered some drinks. And all of a sudden it just -- "Oh, my god, where is my backpack?"

CARROLL: This is what was inside: black pearls, $76,000 worth. Policastro picked them up earlier that night as part of a business venture.

POLICASTRO: I was pretty sure that it was left in the cab and gone forever.

NESTOR SULPICO, CAB DRIVER: When I opened it up, I -- lo and behold, I saw black pearls right there.

CARROLL: Nestor Sulpico was the cabby who picked up Policastro that night.

SULPICO: It's a treasure rove right there.

CARROLL: Buried in the treasure, the owner's cell phone. Sulpico used it to find the rightful owner.

SULPICO: I called the phone right away.

CARROLL: Sulpico says he was never tempted to keep the jewels, even though he's struggling to make money to send home to his daughter in his native Philippines.

SULPICO: So I believe that what I did, that I did was right.

CARROLL: The children in his Bronx neighborhood think so, where he's become a local celeb. Policastro was so grateful, he rewarded Sulpico with $500 and set up a fund to help Sulpico get out of his cab and back to nursing school, his dream.

POLICASTRO: It makes you feel good about human kind, and that's how it's life changing.

SULPICO: Oh, I feel very, very good. I mean, it cannot be bought by money.

CARROLL: It seems nice guys can finish first after all.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

COLLINS: Good guy. The cabby who says he's been mugged twice since December says his new good fortune is his reward. We're going to take a quick break. Be back in just a moment.

(COMMERCIAL BREAK)

HEMMER: Hey, we've got to run. Thanks for with being with us today. And see you on Monday from Boston. You guys have a great weekend.

CAFFERTY: Safe trip.

COLLINS: You have a great weekend.

HEMMER: "IN THE MONEY" this weekend.

CAFFERTY: Saturday, 1:00, Sunday at 3:00.

HEMMER: Who could ever miss it? I mean, how could we? How could we even think about it?

CAFFERTY: Get your TiVo thing out there.

COLLINS: I'll be there, watching from the Hamptons.

HEMMER: Here's Fredricka at the CNN Center.

Good morning, Fred. Have a great weekend.

WHITFIELD: Hello again. You all have a great weekend as well.

HEMMER: All right.

WHITFIELD: Good morning to everyone from the CNN headquarters in Atlanta. I'm Fredricka Whitfield in for Daryn Kagan.

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