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Canadians Voice Anger at President Bush on His Two-Day Trip North; Mark Geragos Makes His Final and Most Critical Argument to Scott Peterson Jury Today

Aired December 01, 2004 - 07:00   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.


SOLEDAD O'BRIEN, CNN ANCHOR: Canadians voice their anger at President Bush on his two day trip north. Today, a thank you to good neighbors.
Emotions too strong to be contained at the Scott Peterson sentencing, as Laci's mother confronts her son-in-law.

Remarkable scenes from the Philippines, where massive flooding is devastating the country. Hundreds killed, on this AMERICAN MORNING.

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

O'BRIEN: Good morning. It's Wednesday. Bill Hemmer has the day off today. Miles O'Brien is filling in for him all week. Nice to have you. Thanks for helping us out.

MILES O'BRIEN, CNN ANCHOR: It's good to be here. It's my pleasure. Good morning to you.

A lot going on now in the Scott Peterson trial as it nears its end. Some of the most intense moments yet with Laci Peterson's mother taking the stand yesterday. Even some jurors were startled by her testimony, and we will talk about that with jury consultant Robert Hirschhorn.

S. O'BRIEN: Also this morning, and interesting case that's now before the Supreme Court where a high school basketball coach is suing his school using Title IX. The question is, can the law be used to protect male coaches, in addition to the female athletes it protects? We're going to talk with Coach Robert Jackson, as well as hear the arguments against him.

M. O'BRIEN: All right, and that "Jeopardy" winning streak is over. Ken Jennings has time now to read the encyclopedia and count his money.

S. O'BRIEN: I thought he lost on an easy question, but...

M. O'BRIEN: Easy for us to say, after 2.5 million in the bank.

S. O'BRIEN: Time to get a look at the -- Jack, I forgot about you. I'm so sorry.

JACK CAFFERTY, CNN ANCHOR: It's all right. I'll try to recover from that slight. It's a not a big deal. Seventh member of President Bush's cabinet member has decided it's been a lot of fun, but he'd rather do something else. Secretary of Homeland Security Tom Ridge is out of there. Plastic sheeting and duct tape notwithstanding, we'll take a look at whether the country is better off under his tutelage or not.

And I'll be back in 20 minutes if you want to set your alarm or anything.

S. O'BRIEN: I'll write it down.

M. O'BRIEN: We'll pencil you in.

S. O'BRIEN: Thank you, Jack.

CAFFERTY: You're welcome.

Let's turn right now to Heidi Collins with a look at some stories now in the news.

Good morning, Heidi.

HEIDI COLLINS, CNN ANCHOR: Good morning, Soledad. And good morning to you, everybody.

President Bush promising to lobby members of Congress to pass the intelligence reform bill, this as members of the 9/11 Commission met yesterday with Vice President Dick Cheney. They urged Congress to act quickly.

(BEGIN VIDEO CLIP)

TOM KEAN, 9/11 COMMISSIONER: The status quo failed us. The status quo does not provide our leaders with the information they require to keep the American people safe. Reform is an urgent matter, and reform simply must not wait until after the next attack.

(END VIDEO CLIP)

COLLINS: House and Senate Republican leaders are meeting at a legislative retreat in Virginia. Aides say the 9/11 bill will come up, but will not dominate those discussions.

A top U.S. senator calling for the resignation of U.N. Secretary- General Kofi Annan. In a public opinion piece in today's "Wall Street Journal," Senator Norm Coleman says the most extensive fraud in United Nations history occurred during Kofi Annan's watch. The Minnesota senator is the head of a Senate committee looking into possible corruption and mismanagement the Iraqi oil-for-food program. He says the massive scope of the debacle demands Annan's resignation.

The Philippines bracing for more bad weather. Powerful rainstorms have triggered landslides and flash flooding. Rescue crews are struggling to reach survivors on rooftops and dry patches of land. More than 400 people have reportedly been killed, some 170 others still missing. And a second typhoon is expected to hit within the next 48 hours.

And say goodbye to Southeast Airlines. The Florida based discount carrier made its final landing last night. The company issued a statement on its Web site, blaming uncontrollable high fuel costs for its closure. Customers are being asked to contact their credit card companies for refunds on their tickets.

Miles, back now to you.

M. O'BRIEN: All right, it's a tough business. Heidi, thank you very much.

Day No. 2 of President Bush's trip to Canada. Yesterday, the president met with Prime Minister Paul Martin in the Canadian capital. On the agenda, trade disputes and plans to tighten border security. President Bush will travel to Halifax Nova Scotia today, then back to Washington. White House correspondent Suzanne Malveaux traveling with the president, joining us now from Ottawa -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: He's going to talk to the Canadian people, and what he's going to argue is that they are natural allies in the war on terror, and he's going to recall that moment, the moment immediately after the September 11th attacks, when Canadians helped more than 30,000 Americans who are stranded. There planes had been diverted, they were in Canada, but as President Bush recognized yesterday, as you hear the protests outside today, those relations have since cooled.

(BEGIN VIDEOTAPE)

MALVEAUX (voice-over): Thousands of Canadians demonstrated against President Bush's visit, protesting everything from the Iraq war to America's ban on Canadian beef. Mr. Bush used his joint appearance with Canada's Prime Minister Paul martin to try to make light of it.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I frankly felt like the reception we received on the way in from the airport was very warm and hospitable, and I want to thank the Canadian people who came out to wave, with all five fingers, for their hospitality.

MALVEAUX: Despite presenting a united front, the two leaders have not yet resolved their differences over Canada's banned beef and taxed lumber, but they vowed to work together on the war in terror.

BUSH: Canada and the United States share a history, a continent and a border. We also share a commitment to freedom and a willingness to defend it in times of peril.

MALVEAUX: Away from the protests, pomp and pleasantries. Wednesday, Mr. Bush delivers a big thank you to the Canadians in the eastern provinces, who helped the more than 30,000 Americans who had become stranded there immediately following the September 11th attacks. The president will address those Canadian volunteers during his brief visit to Halifax, Nova Scotia.

(END VIDEOTAPE)

MALVEAUX: And, Miles, really, this trip to Canada is really seen as a first leg to the fence mending that he is going to do, that he's going to continue to do in Europe when he travels there early next year -- Miles.

M. O'BRIEN: Suzanne Malveaux in Ottawa, thanks much -- Soledad.

S. O'BRIEN: When the president returns from Canada, he'll have more cabinet issues to deal with. Homeland Security Secretary Tom Ridge is resigning. He made the announcement yesterday, saying that he believes the nation is stronger and safer than before 9/11.

TOM RIDGE, HOMELAND SECURITY SECY.: I'm confident the terrorists are aware from the curb to the cockpit, we've got additional security measures that didn't exist a couple years ago, that from port to port, we do things differently with maritime security, confident they know that our borders are more secure.

S. O'BRIEN: Stephen Flynn is an expert on homeland security issues. He's also the author of "America the Vulnerable."

Nice to see you. Thanks for talking with us.

STEPHEN FLYNN, AUTHOR, "AMERICA THE VULNERABLE": I'm glad to be here with you.

S. O'BRIEN: We heard, essentially, the secretary saying we're stronger, we're safer than before 9/11. Is he right about that?

FLYNN: Well, we were wide open before 9/11, and if we could rate it on a scale of 1 to 10, we were probably a 1, and today we're probably closer to a 3. so this is going to be a crawl, walk, run. We should be running, but the secretary's got us up to a crawl.

S. O'BRIEN: So if we're only a 3, which is not good, what are the biggest vulnerabilities, do you think?

FLYNN: Well, we really have this critical infrastructure (INAUDIBLE). These are our transportation system, beyond planes -- trucks, and ships and trains are huge challenges and vulnerabilities. Our energy system, chemical industry, food supply, water supply. You know, we're a society that built ourselves over the course of the last 200 years without having to worry about enemies on our soil. And we now we're having to retrofit security and we need to do it much more urgency than we are, than we have been today.

S. O'BRIEN: Let's talk a little bit about what Tom Ridge was able to accomplish in the 20 months that he was in office. He had a difficult job of combining some 22 separate agencies under one big umbrella, which he was in charge. At the same time, these color-coded alerts, I think it's fair to say, were ridiculed by many people in the government and also lay people who had to just sort of abide by them. What do you think at the end of the day was his biggest accomplishment? FLYNN: Probably putting a rather reassuring face on something that's rather scary, which is homeland security. You know, Americans are really struggling with what that is all about and what the term is here. He certainly provided a public and a focal point to begin the process of saying, we have to come to grips with this real challenge here of terrorists at home, not just dealing with this overseas.

I think the color alert, we probably if we could do it over again, we would have done it again differently. I think the U.S. government would have. It was an attempt to borrow from the Department of Defense. It has a similar system for alert base, and drop it into the civilian world. So I think one of the lessons that comes out of that is that things you did in a traditional national security realm don't work very well in the homeland security realm. You better be a little more creative.

S. O'BRIEN: In addition to that then, what do you think is the biggest challenge for whoever takes over as the next head of homeland security?

FLYNN: I think there are really two. One is to deal with the growth of complacency. You know, once could certainly argue that...

S. O'BRIEN: In the department, or among Americans?

FLYNN: Amongst the American people. To some extent, within the U.S. government, Congress particularly here. Talking to Americans, quite candidly, about the extent of the threat, about vulnerabilities, and how hard this job is and how much we need everybody to pull into it is going to be something we're going to continue to need. And doing that, in the absence of an event, is going to be very challenging. Within Washington, there's a very difficult budget environment. It's clear the department...

S. O'BRIEN: So the second thing is money?

FLYNN: Yes, the second thing is money. There isn't the resources. You know, the war overseas is very expensive. We got a big deficit. And the needs of these agencies are quite high, and more particularly the needs of states and localities to be able to cope with things like a weapons of mass destruction going off in a city. This is a huge demand that most cities still remain woefully unprepared to respond to.

S. O'BRIEN: It's a huge job. We'll see who ends up filling in.

Stephen Flynn, nice to see you. The book, again, is called "America the Vulnerable." It's nice to have you.

FLYNN: Thank you for having me this morning.

S. O'BRIEN: My pleasure -- Miles.

M. O'BRIEN: Well, the answer is Nancy Zerg. The question, who unseated the all-time "Jeopardy" champion last night. Ken Jennings, "Jeopardy" juggernaut, the longest and richest winning streak in game show history, finally came to an end.

(BEGIN VIDEO CLIP)

ALEX TREBEK, HOST, "JEOPARDY": The category is business and industry, and here is the clue, ladies and gentlemen: "Most of this firm's 70,000 seasonal white-collar employees work only four months a year." 30 seconds, good luck.

Nancy, you wrote down your response rather quickly, I thought. I hope it's correct. Let's take a look.

NANCY ZERG: I hope so, too.

TREBEK: "What is H&R Block," right. Your wager 4,401, taking you up to $14,401. You have a 1 dollar lead over Ken Jennings right now. And his final response was? FedEx. His wager was 5,601.

He winds up...

(END VIDEO CLIP)

M. O'BRIEN: Did you hear that gasp? Even Zerg shocked, she had unseated the now-famous champ. Jennings logged 74 consecutive wins, totalling more than $2.5 million. Now that's an average daily windfall of more than $34,000, not a bad day's work.

During his run, Jennings came up with the correct question more than 2,700 times. We'll more on Jennings defeat coming up later this hour on "90-Second Pop." And Jennings will be our guest tomorrow here on AMERICAN MORNING.

(WEATHER REPORT)

M. O'BRIEN: Still to come, testing the limits of Title IX. We'll meet a man who says he was punished for doing the right thing. It's all in the hands of the Supreme Court as of today.

S. O'BRIEN: Also, a former Navy diver who thought he had telepathy with Sheryl Crow, accused stalker, learning his fate.

M. O'BRIEN: And the sentencing phase of the Peterson trial just started, but has the jury already signaled whether Peterson will get the death penalty? We'll ask that question, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Attorney Mark Geragos make his final and most critical argument to the Scott Peterson jury today. The defense will present its side of the trial's penalty phase. Before the prosecution rested yesterday, there were emotional moments in that courtroom, to say the least, from Laci Peterson's family.

Robert Hirschhorn, attorney and jury consultant, joining us now to talk a little bit about it. Of course all we have here have the ability to do is read it, and just reading it is very difficult, isn't it.

ROBERT HIRSCHHORN, ATTY. & JURY CONSULTANT: Well, it is. And you know, being in the courtroom, the emotion has got to be overwhelming. It breaks your heart to see what this mother's going through.

M. O'BRIEN: Right, let's give people a little bit of a sense of it, a couple of the things that were said. Speaking to Scott Peterson directly, in some cases, she said this. "Why, why? Divorce is always an option, but not murder." Directly to him. That had to be an incredibly powerful moment.

HIRSCHHORN: And it's a point that all the jurors can understand -- if you're not happy in the relationship you're in, get out of it, but you don't kill the person. It's a very powerful message that they can take back.

M. O'BRIEN: And then there was also a sense of her own agony, this sense of missing her daughter. She said, "I miss her. I want to know my grandson. I want Laci to be a mother. I want to hear her be called mom." It's hard to even read that, apparently not a dry in the jury box.

HIRSCHHORN: Yes, I wouldn't expect there to be a dry eye in the house. I mean, that is such overwhelming kind of testimony and it's something that every single juror can relate to, the loss of something that you're looking forward to for so long and so dearly.

M. O'BRIEN: So what we're talking about here is a mother seeking justice versus what we're going to hear from eventually, which is a mother trying to protect the life of her son. Generally, and you know, patterns are probably not worth applying necessarily, because this is a very individual thing, but generally, where do juries usually side in these cases.

HIRSCHHORN: What they have to do is they're being asked to make this life-or-death decision. It's a decision, it's a situation that none of us would ever want to be placed in, to decide should another human being live or die. What you've got is no mother -- no mother should have to have their heart broken like this, not the mother of the victim, not the mother of the victimizer. So the jury is going to have to do this weighing process and decide, what's the right decision?

M. O'BRIEN: All right, so if you're advising the defense, Mark Geragos and his team, what would you tell them?

HIRSCHHORN: Well, we've got to get the jury to the point of being is despise the sin, forgive the sinner. And so that way, they can be mad at him, but be willing to spare his life. The other thing that we have to consider is, if we're going to ask for the ultimate punishment, the death penalty, it needs to be saved for the worst of the worst, not a real bad guy, and that's where I think the defense is going to go.

M. O'BRIEN: And this part of a trial is a very difficult stage for anybody in the defense, because in some ways they have to undermine their own arguments that has brought them this far.

HIRSCHHORN: You bet. And part of it, is they're asking the jury to look at what's called residual doubt -- do they have any question in their mind, because you know, there's very little evidence linking him directly, all a circumstantial evidence case. So There's still this residual doubt. But what you want to do is get the jury to consider, well, if there's a chance he didn't do it, we should spare his life.

M. O'BRIEN: All right. We'll be watching it. Robert Hirschhorn, come on back and let us know how it goes as this progresses. Very emotional.

HIRSCHHORN: Thanks, Miles.

M. O'BRIEN: Appreciate it.

S. O'BRIEN: The man accused of stalking pop star Sheryl Crow has been acquitted. Seen here in a video played for the jury Ambrose Capos (ph) was found not guilty of stalking and burglary. The former Navy diver was arrested last year after appearing at a hall where Crow was performing. Outside the court, Capos said he was -- quote -- "delusional" when he believed he could communicate telepathically with the singer.

Still to come this morning, the nation's No. 1 retailer does a major about-face just in time for the holiday shopping season. Andy tells us what it's all about, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Wal-mart finds itself in unfamiliar territory. For that and a look at the action on Wall Street today, Andy Serwer's "Minding Your Business."

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you, Soledad.

The world's largest retailer finds itself in the headlines yet again, this time apparently doing an about face.

You may remember a couple days ago, the company said it wouldn't break out sales for Black Friday, that all-important day after Thanksgiving. Then it said two days ago, that sales for November were subpar, because it hadn't discounted enough compared to its competitors, like Target et al.

Now, last night, apparently, the company signalling it will begin discounting heavily. That should send a lot of shoppers their way. Twenty percent of sales come in that Christmas season, so very important. Yesterday, Wal-mart shares were down again, along with Home Depot, and that helped drag the Dow down 47 points to end the month on a sour note.

Still, November a very, very good month, the Dow up nearly 4 percent. Remember, after the election, we had that rally, still enough to carry us through to have a very positive month. November usually a very good month for the markets, and it followed course.

S. O'BRIEN: When do they know whether or not it's going to be a good Christmas season? Is it really just the day after Christmas when they added up everything, or can you tell a trend?

SERWER: Well, you can tell a trend. You can start to tell a trend right away after Thanksgiving. And as you get closer, you get more information, but there's so many contradictory signals. We talked about that a little bit, and we'll know the full story in January really.

S. O'BRIEN: Andy, thanks.

M. O'BRIEN: You're welcome. All right, Jack Cafferty is here. We've got some e-mail Questions of the Day.

CAFFERTY: Thank you, Miles. Tom Ridge is leaving the Department of Homeland Security. He'll, of course, be remembered for plastic sheeting, for duct tape, and for the color-coded alert system. Laugh if you want, but remember this, on Tom Ridge's watch, there have been no attacks on our homeland.

So the question is this, has the Department of Homeland security under Ridge been right, or just lucky? AM@cnn.com.

S. O'BRIEN: Good question.

M. O'BRIEN: Yes, he had a tough job, creating a bureaucracy out of, you know...

S. O'BRIEN: A bunch of mini bureaucracies.

SERWER: Creating a bureaucracy is not job you necessarily want to get. That is tough.

M. O'BRIEN: I wonder if you put it that way on your resume, creating a bureaucracy?

SERWER: Probably not. You probably want would put it that way.

M. O'BRIEN: You'd probably spin it a little different, yes.

S. O'BRIEN: Member of the cabinet probably better.

CAFFERTY: A held a high-level government position that was extremely pertinent to national security.

SERWER: That's good.

M. O'BRIEN: Career counselor, Jack Cafferty.

CAFFERTY: I've been practicing writing resumes myself.

S. O'BRIEN: Practicing lying on your resume for years now. CAFFERTY: Working on my own.

S. O'BRIEN: Thank you, Jack.

Still to come this morning, the Wednesday edition of "90-Second Pop."

It was supposed to be a three-hour tour, but once again, "Gilligan's Island" is full of castaways, some of them famous. Will the reality remake sink or swim? Plus, Mariah Carey gives her regards to Broadway, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Still to come this morning, Title IX is supposed to prevent discrimination against women and girls. So why does a man in Alabama think it applies to him, too? That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired December 1, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Canadians voice their anger at President Bush on his two day trip north. Today, a thank you to good neighbors.
Emotions too strong to be contained at the Scott Peterson sentencing, as Laci's mother confronts her son-in-law.

Remarkable scenes from the Philippines, where massive flooding is devastating the country. Hundreds killed, on this AMERICAN MORNING.

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

O'BRIEN: Good morning. It's Wednesday. Bill Hemmer has the day off today. Miles O'Brien is filling in for him all week. Nice to have you. Thanks for helping us out.

MILES O'BRIEN, CNN ANCHOR: It's good to be here. It's my pleasure. Good morning to you.

A lot going on now in the Scott Peterson trial as it nears its end. Some of the most intense moments yet with Laci Peterson's mother taking the stand yesterday. Even some jurors were startled by her testimony, and we will talk about that with jury consultant Robert Hirschhorn.

S. O'BRIEN: Also this morning, and interesting case that's now before the Supreme Court where a high school basketball coach is suing his school using Title IX. The question is, can the law be used to protect male coaches, in addition to the female athletes it protects? We're going to talk with Coach Robert Jackson, as well as hear the arguments against him.

M. O'BRIEN: All right, and that "Jeopardy" winning streak is over. Ken Jennings has time now to read the encyclopedia and count his money.

S. O'BRIEN: I thought he lost on an easy question, but...

M. O'BRIEN: Easy for us to say, after 2.5 million in the bank.

S. O'BRIEN: Time to get a look at the -- Jack, I forgot about you. I'm so sorry.

JACK CAFFERTY, CNN ANCHOR: It's all right. I'll try to recover from that slight. It's a not a big deal. Seventh member of President Bush's cabinet member has decided it's been a lot of fun, but he'd rather do something else. Secretary of Homeland Security Tom Ridge is out of there. Plastic sheeting and duct tape notwithstanding, we'll take a look at whether the country is better off under his tutelage or not.

And I'll be back in 20 minutes if you want to set your alarm or anything.

S. O'BRIEN: I'll write it down.

M. O'BRIEN: We'll pencil you in.

S. O'BRIEN: Thank you, Jack.

CAFFERTY: You're welcome.

Let's turn right now to Heidi Collins with a look at some stories now in the news.

Good morning, Heidi.

HEIDI COLLINS, CNN ANCHOR: Good morning, Soledad. And good morning to you, everybody.

President Bush promising to lobby members of Congress to pass the intelligence reform bill, this as members of the 9/11 Commission met yesterday with Vice President Dick Cheney. They urged Congress to act quickly.

(BEGIN VIDEO CLIP)

TOM KEAN, 9/11 COMMISSIONER: The status quo failed us. The status quo does not provide our leaders with the information they require to keep the American people safe. Reform is an urgent matter, and reform simply must not wait until after the next attack.

(END VIDEO CLIP)

COLLINS: House and Senate Republican leaders are meeting at a legislative retreat in Virginia. Aides say the 9/11 bill will come up, but will not dominate those discussions.

A top U.S. senator calling for the resignation of U.N. Secretary- General Kofi Annan. In a public opinion piece in today's "Wall Street Journal," Senator Norm Coleman says the most extensive fraud in United Nations history occurred during Kofi Annan's watch. The Minnesota senator is the head of a Senate committee looking into possible corruption and mismanagement the Iraqi oil-for-food program. He says the massive scope of the debacle demands Annan's resignation.

The Philippines bracing for more bad weather. Powerful rainstorms have triggered landslides and flash flooding. Rescue crews are struggling to reach survivors on rooftops and dry patches of land. More than 400 people have reportedly been killed, some 170 others still missing. And a second typhoon is expected to hit within the next 48 hours.

And say goodbye to Southeast Airlines. The Florida based discount carrier made its final landing last night. The company issued a statement on its Web site, blaming uncontrollable high fuel costs for its closure. Customers are being asked to contact their credit card companies for refunds on their tickets.

Miles, back now to you.

M. O'BRIEN: All right, it's a tough business. Heidi, thank you very much.

Day No. 2 of President Bush's trip to Canada. Yesterday, the president met with Prime Minister Paul Martin in the Canadian capital. On the agenda, trade disputes and plans to tighten border security. President Bush will travel to Halifax Nova Scotia today, then back to Washington. White House correspondent Suzanne Malveaux traveling with the president, joining us now from Ottawa -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: He's going to talk to the Canadian people, and what he's going to argue is that they are natural allies in the war on terror, and he's going to recall that moment, the moment immediately after the September 11th attacks, when Canadians helped more than 30,000 Americans who are stranded. There planes had been diverted, they were in Canada, but as President Bush recognized yesterday, as you hear the protests outside today, those relations have since cooled.

(BEGIN VIDEOTAPE)

MALVEAUX (voice-over): Thousands of Canadians demonstrated against President Bush's visit, protesting everything from the Iraq war to America's ban on Canadian beef. Mr. Bush used his joint appearance with Canada's Prime Minister Paul martin to try to make light of it.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I frankly felt like the reception we received on the way in from the airport was very warm and hospitable, and I want to thank the Canadian people who came out to wave, with all five fingers, for their hospitality.

MALVEAUX: Despite presenting a united front, the two leaders have not yet resolved their differences over Canada's banned beef and taxed lumber, but they vowed to work together on the war in terror.

BUSH: Canada and the United States share a history, a continent and a border. We also share a commitment to freedom and a willingness to defend it in times of peril.

MALVEAUX: Away from the protests, pomp and pleasantries. Wednesday, Mr. Bush delivers a big thank you to the Canadians in the eastern provinces, who helped the more than 30,000 Americans who had become stranded there immediately following the September 11th attacks. The president will address those Canadian volunteers during his brief visit to Halifax, Nova Scotia.

(END VIDEOTAPE)

MALVEAUX: And, Miles, really, this trip to Canada is really seen as a first leg to the fence mending that he is going to do, that he's going to continue to do in Europe when he travels there early next year -- Miles.

M. O'BRIEN: Suzanne Malveaux in Ottawa, thanks much -- Soledad.

S. O'BRIEN: When the president returns from Canada, he'll have more cabinet issues to deal with. Homeland Security Secretary Tom Ridge is resigning. He made the announcement yesterday, saying that he believes the nation is stronger and safer than before 9/11.

TOM RIDGE, HOMELAND SECURITY SECY.: I'm confident the terrorists are aware from the curb to the cockpit, we've got additional security measures that didn't exist a couple years ago, that from port to port, we do things differently with maritime security, confident they know that our borders are more secure.

S. O'BRIEN: Stephen Flynn is an expert on homeland security issues. He's also the author of "America the Vulnerable."

Nice to see you. Thanks for talking with us.

STEPHEN FLYNN, AUTHOR, "AMERICA THE VULNERABLE": I'm glad to be here with you.

S. O'BRIEN: We heard, essentially, the secretary saying we're stronger, we're safer than before 9/11. Is he right about that?

FLYNN: Well, we were wide open before 9/11, and if we could rate it on a scale of 1 to 10, we were probably a 1, and today we're probably closer to a 3. so this is going to be a crawl, walk, run. We should be running, but the secretary's got us up to a crawl.

S. O'BRIEN: So if we're only a 3, which is not good, what are the biggest vulnerabilities, do you think?

FLYNN: Well, we really have this critical infrastructure (INAUDIBLE). These are our transportation system, beyond planes -- trucks, and ships and trains are huge challenges and vulnerabilities. Our energy system, chemical industry, food supply, water supply. You know, we're a society that built ourselves over the course of the last 200 years without having to worry about enemies on our soil. And we now we're having to retrofit security and we need to do it much more urgency than we are, than we have been today.

S. O'BRIEN: Let's talk a little bit about what Tom Ridge was able to accomplish in the 20 months that he was in office. He had a difficult job of combining some 22 separate agencies under one big umbrella, which he was in charge. At the same time, these color-coded alerts, I think it's fair to say, were ridiculed by many people in the government and also lay people who had to just sort of abide by them. What do you think at the end of the day was his biggest accomplishment? FLYNN: Probably putting a rather reassuring face on something that's rather scary, which is homeland security. You know, Americans are really struggling with what that is all about and what the term is here. He certainly provided a public and a focal point to begin the process of saying, we have to come to grips with this real challenge here of terrorists at home, not just dealing with this overseas.

I think the color alert, we probably if we could do it over again, we would have done it again differently. I think the U.S. government would have. It was an attempt to borrow from the Department of Defense. It has a similar system for alert base, and drop it into the civilian world. So I think one of the lessons that comes out of that is that things you did in a traditional national security realm don't work very well in the homeland security realm. You better be a little more creative.

S. O'BRIEN: In addition to that then, what do you think is the biggest challenge for whoever takes over as the next head of homeland security?

FLYNN: I think there are really two. One is to deal with the growth of complacency. You know, once could certainly argue that...

S. O'BRIEN: In the department, or among Americans?

FLYNN: Amongst the American people. To some extent, within the U.S. government, Congress particularly here. Talking to Americans, quite candidly, about the extent of the threat, about vulnerabilities, and how hard this job is and how much we need everybody to pull into it is going to be something we're going to continue to need. And doing that, in the absence of an event, is going to be very challenging. Within Washington, there's a very difficult budget environment. It's clear the department...

S. O'BRIEN: So the second thing is money?

FLYNN: Yes, the second thing is money. There isn't the resources. You know, the war overseas is very expensive. We got a big deficit. And the needs of these agencies are quite high, and more particularly the needs of states and localities to be able to cope with things like a weapons of mass destruction going off in a city. This is a huge demand that most cities still remain woefully unprepared to respond to.

S. O'BRIEN: It's a huge job. We'll see who ends up filling in.

Stephen Flynn, nice to see you. The book, again, is called "America the Vulnerable." It's nice to have you.

FLYNN: Thank you for having me this morning.

S. O'BRIEN: My pleasure -- Miles.

M. O'BRIEN: Well, the answer is Nancy Zerg. The question, who unseated the all-time "Jeopardy" champion last night. Ken Jennings, "Jeopardy" juggernaut, the longest and richest winning streak in game show history, finally came to an end.

(BEGIN VIDEO CLIP)

ALEX TREBEK, HOST, "JEOPARDY": The category is business and industry, and here is the clue, ladies and gentlemen: "Most of this firm's 70,000 seasonal white-collar employees work only four months a year." 30 seconds, good luck.

Nancy, you wrote down your response rather quickly, I thought. I hope it's correct. Let's take a look.

NANCY ZERG: I hope so, too.

TREBEK: "What is H&R Block," right. Your wager 4,401, taking you up to $14,401. You have a 1 dollar lead over Ken Jennings right now. And his final response was? FedEx. His wager was 5,601.

He winds up...

(END VIDEO CLIP)

M. O'BRIEN: Did you hear that gasp? Even Zerg shocked, she had unseated the now-famous champ. Jennings logged 74 consecutive wins, totalling more than $2.5 million. Now that's an average daily windfall of more than $34,000, not a bad day's work.

During his run, Jennings came up with the correct question more than 2,700 times. We'll more on Jennings defeat coming up later this hour on "90-Second Pop." And Jennings will be our guest tomorrow here on AMERICAN MORNING.

(WEATHER REPORT)

M. O'BRIEN: Still to come, testing the limits of Title IX. We'll meet a man who says he was punished for doing the right thing. It's all in the hands of the Supreme Court as of today.

S. O'BRIEN: Also, a former Navy diver who thought he had telepathy with Sheryl Crow, accused stalker, learning his fate.

M. O'BRIEN: And the sentencing phase of the Peterson trial just started, but has the jury already signaled whether Peterson will get the death penalty? We'll ask that question, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Attorney Mark Geragos make his final and most critical argument to the Scott Peterson jury today. The defense will present its side of the trial's penalty phase. Before the prosecution rested yesterday, there were emotional moments in that courtroom, to say the least, from Laci Peterson's family.

Robert Hirschhorn, attorney and jury consultant, joining us now to talk a little bit about it. Of course all we have here have the ability to do is read it, and just reading it is very difficult, isn't it.

ROBERT HIRSCHHORN, ATTY. & JURY CONSULTANT: Well, it is. And you know, being in the courtroom, the emotion has got to be overwhelming. It breaks your heart to see what this mother's going through.

M. O'BRIEN: Right, let's give people a little bit of a sense of it, a couple of the things that were said. Speaking to Scott Peterson directly, in some cases, she said this. "Why, why? Divorce is always an option, but not murder." Directly to him. That had to be an incredibly powerful moment.

HIRSCHHORN: And it's a point that all the jurors can understand -- if you're not happy in the relationship you're in, get out of it, but you don't kill the person. It's a very powerful message that they can take back.

M. O'BRIEN: And then there was also a sense of her own agony, this sense of missing her daughter. She said, "I miss her. I want to know my grandson. I want Laci to be a mother. I want to hear her be called mom." It's hard to even read that, apparently not a dry in the jury box.

HIRSCHHORN: Yes, I wouldn't expect there to be a dry eye in the house. I mean, that is such overwhelming kind of testimony and it's something that every single juror can relate to, the loss of something that you're looking forward to for so long and so dearly.

M. O'BRIEN: So what we're talking about here is a mother seeking justice versus what we're going to hear from eventually, which is a mother trying to protect the life of her son. Generally, and you know, patterns are probably not worth applying necessarily, because this is a very individual thing, but generally, where do juries usually side in these cases.

HIRSCHHORN: What they have to do is they're being asked to make this life-or-death decision. It's a decision, it's a situation that none of us would ever want to be placed in, to decide should another human being live or die. What you've got is no mother -- no mother should have to have their heart broken like this, not the mother of the victim, not the mother of the victimizer. So the jury is going to have to do this weighing process and decide, what's the right decision?

M. O'BRIEN: All right, so if you're advising the defense, Mark Geragos and his team, what would you tell them?

HIRSCHHORN: Well, we've got to get the jury to the point of being is despise the sin, forgive the sinner. And so that way, they can be mad at him, but be willing to spare his life. The other thing that we have to consider is, if we're going to ask for the ultimate punishment, the death penalty, it needs to be saved for the worst of the worst, not a real bad guy, and that's where I think the defense is going to go.

M. O'BRIEN: And this part of a trial is a very difficult stage for anybody in the defense, because in some ways they have to undermine their own arguments that has brought them this far.

HIRSCHHORN: You bet. And part of it, is they're asking the jury to look at what's called residual doubt -- do they have any question in their mind, because you know, there's very little evidence linking him directly, all a circumstantial evidence case. So There's still this residual doubt. But what you want to do is get the jury to consider, well, if there's a chance he didn't do it, we should spare his life.

M. O'BRIEN: All right. We'll be watching it. Robert Hirschhorn, come on back and let us know how it goes as this progresses. Very emotional.

HIRSCHHORN: Thanks, Miles.

M. O'BRIEN: Appreciate it.

S. O'BRIEN: The man accused of stalking pop star Sheryl Crow has been acquitted. Seen here in a video played for the jury Ambrose Capos (ph) was found not guilty of stalking and burglary. The former Navy diver was arrested last year after appearing at a hall where Crow was performing. Outside the court, Capos said he was -- quote -- "delusional" when he believed he could communicate telepathically with the singer.

Still to come this morning, the nation's No. 1 retailer does a major about-face just in time for the holiday shopping season. Andy tells us what it's all about, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Wal-mart finds itself in unfamiliar territory. For that and a look at the action on Wall Street today, Andy Serwer's "Minding Your Business."

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you, Soledad.

The world's largest retailer finds itself in the headlines yet again, this time apparently doing an about face.

You may remember a couple days ago, the company said it wouldn't break out sales for Black Friday, that all-important day after Thanksgiving. Then it said two days ago, that sales for November were subpar, because it hadn't discounted enough compared to its competitors, like Target et al.

Now, last night, apparently, the company signalling it will begin discounting heavily. That should send a lot of shoppers their way. Twenty percent of sales come in that Christmas season, so very important. Yesterday, Wal-mart shares were down again, along with Home Depot, and that helped drag the Dow down 47 points to end the month on a sour note.

Still, November a very, very good month, the Dow up nearly 4 percent. Remember, after the election, we had that rally, still enough to carry us through to have a very positive month. November usually a very good month for the markets, and it followed course.

S. O'BRIEN: When do they know whether or not it's going to be a good Christmas season? Is it really just the day after Christmas when they added up everything, or can you tell a trend?

SERWER: Well, you can tell a trend. You can start to tell a trend right away after Thanksgiving. And as you get closer, you get more information, but there's so many contradictory signals. We talked about that a little bit, and we'll know the full story in January really.

S. O'BRIEN: Andy, thanks.

M. O'BRIEN: You're welcome. All right, Jack Cafferty is here. We've got some e-mail Questions of the Day.

CAFFERTY: Thank you, Miles. Tom Ridge is leaving the Department of Homeland Security. He'll, of course, be remembered for plastic sheeting, for duct tape, and for the color-coded alert system. Laugh if you want, but remember this, on Tom Ridge's watch, there have been no attacks on our homeland.

So the question is this, has the Department of Homeland security under Ridge been right, or just lucky? AM@cnn.com.

S. O'BRIEN: Good question.

M. O'BRIEN: Yes, he had a tough job, creating a bureaucracy out of, you know...

S. O'BRIEN: A bunch of mini bureaucracies.

SERWER: Creating a bureaucracy is not job you necessarily want to get. That is tough.

M. O'BRIEN: I wonder if you put it that way on your resume, creating a bureaucracy?

SERWER: Probably not. You probably want would put it that way.

M. O'BRIEN: You'd probably spin it a little different, yes.

S. O'BRIEN: Member of the cabinet probably better.

CAFFERTY: A held a high-level government position that was extremely pertinent to national security.

SERWER: That's good.

M. O'BRIEN: Career counselor, Jack Cafferty.

CAFFERTY: I've been practicing writing resumes myself.

S. O'BRIEN: Practicing lying on your resume for years now. CAFFERTY: Working on my own.

S. O'BRIEN: Thank you, Jack.

Still to come this morning, the Wednesday edition of "90-Second Pop."

It was supposed to be a three-hour tour, but once again, "Gilligan's Island" is full of castaways, some of them famous. Will the reality remake sink or swim? Plus, Mariah Carey gives her regards to Broadway, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Still to come this morning, Title IX is supposed to prevent discrimination against women and girls. So why does a man in Alabama think it applies to him, too? That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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