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U.S. Senators Convene Shortly for Final Debate on Nomination of Condoleezza Rice as Secretary of State; '90-Second Pop'

Aired January 25, 2005 - 09:30   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: Welcome back, everybody. Just exactly half past the hour on this AMERICAN MORNING.
How exposed will American troops be this Sunday when Iraqis hold their elections? We're learning new details about the military's exact role. Barbara Starr is going to join us in just a few moments to tell us about the dangers Americans will face.

BILL HEMMER, CNN ANCHOR: Also this hour, just a little less than an hour ago, we heard the nomination for this year's Academy Awards. A special edition of "90-Second Pop." We talked to our poppers two hours ago. We got their predictions. We're going to see if they came true in a moment here. The surprises, too, from an hour ago.

O'BRIEN: Headlines first, though. Carol Costello is back for us this morning. Good morning.

CAROL COSTELLO, CNN ANCHOR: I am, for one more last go around. Is that grammatically correct?

O'BRIEN: Yes, it is.

COSTELLO: And then I must bid you adieu.

O'BRIEN: Until tomorrow, right?

COSTELLO: Exactly.

O'BRIEN: A little emotional over here.

COSTELLO: I know.

Good morning to you. Good morning everyone.

Now in the news, a serious story to start off with. An American citizen known to have been kidnapped in Baghdad in November has now appeared in a videotaped statement pleading for his life. The man identifies himself as Roy Hallums. This is an image from that tape. It's not clear when this video was recorded. Attempts by CNN to contact Mr. Hallums' for a response family have been unsuccessful. But the U.S. embassy in Baghdad tells CNN they are in contact with his family, and they do believe that he is a hostage.

Military operations in Iraq and Afghanistan are getting more expensive. A senior administration official saying the White House will ask for another $80 billion, boosting the cost of both conflicts to almost $300 billion. The announcement is expected as early as today.

O'BRIEN: In Cambridge, Massachusetts, opening statements are getting under way in the trial of a defrocked priest charged with sex abuse. Paul Shanley faces three charges of raping a child and two charges of indecent assault and battery on a child. If convicted the maximum sentence would be life in prison. The case is expected to last about two weeks.

And we have been telling you all morning about this: The pro basketball players and fans involved in that big brawl last November may be reunited in a Michigan courtroom. Five Indiana Pacers players and five Detroit Pistons fans have been ordered to attend a pretrial congress today. It is not clear if that I all be before the judge at the same time, but they'll all be in the courthouse at the same time. And it will be interesting to see what the judge has to say to them.

O'BRIEN: Interesting to see the high-priced lawyers versus everybody else's lawyers.

COSTELLO: The public defenders.

O'BRIEN: For the fans, right?

HEMMER: Thanks, Carol.

O'BRIEN: Thanks, Carol.

HEMMER: U.S. senators convene shortly for a final debate on the nomination of Condoleezza Rice as secretary of state. Democrats asked for the debate to highlight their criticism of the war in Iraq and the policies supported there. Nine hours on the schedule.

Ed Henry kicks it off from Capitol Hill.

Has it started yet, Ed?

Good morning.

ED HENRY, CNN CORRESPONDENT: Good morning again, Bill.

It's expected to start about 10:45 Eastern Time this morning. And the obvious question here is, you know, after everyone knows the fact that Condoleezza Rice is going to be confirmed tomorrow. They also know that there were two days where Democrats last week got to grill her pretty hard. So why do they need nine more hours of debate? Democrats basically say it's because they have very sharp policy differences with the White House, especially on Iraq. And since Democrats are out of power, this is one of their only forums, really, to air grievances.

And leading the charge for the Democrats once again is Senator Barbara Boxer. She insisted on CNN this morning that Democrats are not playing political games here.

(BEGIN VIDEO CLIP) SEN. BARBARA BOXER (D), CALIFORNIA: It's important because the United States Senate has this role given to us in the constitution that we are supposed to advise the president and consent to his nominees. This isn't something that we're looking at because we want to have some fun. This is a very serious constitutionally driven responsibility that we have.

(END VIDEO CLIP)

HENRY: But Republicans say this is overkill, that Democrats are actually engaged in petty partisanship. Republicans also frustrated. They believe that Democrats are playing politics with national security, and that it's dangerous to be playing around with a new secretary of state and delaying Condoleezza Rice's elevation to secretary of state at a time of war.

The bottom line here, a lot of rhetoric coming today once again, but tomorrow Condoleezza rice will finally be confirmed.

HEMMER: Ed, before we get to that point, $80 billion is on the table now in additional funding for Iraq and Afghanistan, or will be in about two weeks time. How much of that debate will come on to the Senate floor?

HENRY: You can bet that Democrats like Barbara Boxer, Edward Kennedy are going to be the Senate floor today saying that while they want to support the troops, while they want to send more money to Iraq and Afghanistan, they're concerned that not enough money is being spent on the domestic front here at home, and also you're going to hear those Democrats saying that if they write another check for that money, they want some sort of exit strategy from the White House on Iraq -- Bill.

HEMMER: Ed Henry on Capitol Hill. Thanks, Ed -- Soledad.

O'BRIEN: Just five days to go until Iraq's elections. As U.S. forces prepare for the big day, questions persist on what the next phase in Iraq will hold.

Barbara Starr is at the Pentagon for us this morning.

Good morning, Barbara.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you again, Soledad.

Well, on Election Day, the expectation is that Iraqi security forces will handle security around the polling places, U.S. troops will be in a backup support role, but with every expectation that the violence is going to continue for some time, indeed, military planners are already looking at the next phase.

(BEGIN VIDEOTAPE)

STARR (voice over): As the violence continues just days before the election, the U.S. military is now stepping up efforts to improve the Iraqi security forces' capability to fight for their country. Key to the plan? U.S. military and police advisory teams will be attached directly to Iraqi units to fight the insurgency together. One potential option planners are considering?

BRIG. GEN. MARK KIMMITT, DEP. DIR., U.S. CENTRAL COMMAND: The numbers that we have been working with are somewhere in the order 200 to 250 of these teams and roughly 10 men per team. So, we're talking in total somewhere between 2,200 and 2,700 personnel involved in this process.

STARR: The hope is by making U.S. troops part of Iraqi units, it will increase the Iraqis' confidence. One key advantage? The U.S. will bring along its own firepower.

KIMMITT: If necessary, if the unit needs it, they can bring in artillery support. They can call in for close-air support.

STARR: Officials say the plan is absolutely not the beginning of a strategy to withdraw from combat in favor of training, and that the Iraqis privately tell the Americans they want the U.S. to stay. The U.S. and Iraqis say they still plan to win against the insurgency.

KIMMITT: It won't be black, white, win, lose. First of all, we will not lose. It will be more of a gradual process. We will know that we have achieved the military requirements in Iraq when the Iraqi security forces are capable of taking on all the internal and external security needs for their country.

(END VIDEOTAPE)

STARR: But if the Iraqis can't take over any time soon, top Army officials here in the Pentagon say they are prepared to keep 120,000 U.S. soldiers in Iraq for the next two years -- Soledad.

O'BRIEN: Barbara Starr at the Pentagon for us this morning. Barbara, thanks -- Bill.

HEMMER: Soledad, talking about the weather, take a look at this right now. Hall is frozen over. The scene in Hall, Massachusetts yesterday. You will see ice-encrusted homes on the water. One homeowner, we heard said she had to chip her way out after the storm. That is unbelievable. It looks like a picture of the North Pole from the state of Massachusetts.

(WEATHER REPORT)

HEMMER: We are watching right now the Oscar nominations that came out just about an hour ago. Three hours ago, we had our poppers out here, giving us their predictions. We are visiting with them again. Say hello to Toure and Jessica Shaw from "Entertainment Weekly," and Devin Gordon "Newsweek" magazine.

Welcome, thanks for being patient today.

"Aviator" is going to get the headline, 11 nominations. Two other headlines out there, too, though, "Fahrenheit 9/11," zip, and "Passion of the Christ" got three, but in somewhat minor category.

TOURE, CNN CORRESPONDENT: Yes, cinematography, Best Score, Best Makeup. This is not what we go to the Oscars to win. I mean, it's really surprising, these big two movies that really embodied 2004 -- red state, blue state, what we were all about last year, nothing major here.

HEMMER: They got the attention in the headlines, but the Academy did not give...

JESSICA SHAW, "ENTERTAINMENT WEEKLY." Yes, I don't think this is surprising at all that they didn't get nominations. "Passion" was a phenomenon. "Fahrenheit" was a phenomenon. These were movies that did incredibly well at the box office, but they were not Best Picture movies.

DEVIN GORDON, "NEWSWEEK": Hollywood is a blue state. That's why. Hollywood is a blue state.

TOURE: But then why isn't "Fahrenheit," which was a great movie, why isn't in the Best Picture?

GORDON: Because they lost. They lost. I think, you know, if Bush had lost the election, I think "Fahrenheit 9/11" definitely would have been a nominee.

HEMMER: You believe that? I think the Academy's just reflecting...

GORDON: They would have patted themselves on the back.

HEMMER: ... what every social conversation in America is supposed to stay away from, religion and politics.

SHAW: It also came out quite a while ago. And that often happens with Oscar-nominated movies. If it comes out in the spring or in the summer, people forget about it. That's why "Eternal Sunshine" didn't get the nod.

HEMMER: The buzz starts to buzz the other way. Best Picture. "Aviator" got 11 nominations. I mentioned that. "Finding Neverland" got 7, "Million Dollar Baby" was 7, "Ray" and "Sideways." "Aviator" wins or not?

TOURE: I'm thinking still "Million Dollar Baby." I mean, just the heat that I'm seeing in the other categories. The Best Actor, the supporting categories. "Million Dollar Baby" is right in there. I think it's a two-way race. I think "Sideways" has lost a bit of their momentum. Early, late December, it was "Sideways" is the picture of the year. Now, pull the brakes on that, it's a two-way race. "Aviator," "Million Dollar Baby." You know what I said is going to win.

HEMMER: Yes, I know what you said. Best Actor, Don Cheadle, "Hotel Rwanda"; Johnny Depp, "Finding Neverland"; Leo DiCaprio, "The Aviator"; Clint Eastwood, "Million Dollar Baby." If we got it, put it on the screen. Jamie Foxx in "Ray." Cheadle, a long shot, you thought?

SHAW: Yes. I thought that was a bit of a long shot. It's nice to see the Academy giving "Hotel Rwanda" some love. And in got in. Sophie Okonedo for Supporting Actress. She got a nomination. But I don't know. I kind of thought this was going to -- the fifth slot would be for Paul Giamatti from "Sideways." You know, I thought, God, he's a lock. He would definitely get it. He was nowhere.

HEMMER: Best Actress now. Devin, take a shot at this. Annette Bening, "Being Julia." Catalina Sandino Moreno, not to be confused to with Suzanne Rodana Rodana (ph). Imelda Staunton, "Vera Drake." Hilary Swank, "Million Dollar Baby" and Kate Winslet, "Eternal Sunshine." Rematch, Swank and Annette Bening, right?

GORDON: Yes, this is a category that looks like Hilary Swank is the frontrunner on. But I just keep thinking back to a couple years ago when Adrien Brody won against, like, the greatest collection of actors maybe ever in a category. He was up against Cain, he was up against Nichelson, and yet, Adrien Brody comes out of nowhere and wins. These things happen in the Academy Awards. And I just, for some reason, I have a feeling that that Oscar is ripe for the picking. I think...

SHAW: You're wrong!

TOURE: Where is my girl Uma Thurman? She made two movies, people. Two "Kill Bills." She was awesome and I'm hurt that she's not noticed today.

GORDON: When you step on an eyeball in a movie...

(CROSSTALK)

HEMMER: Snub, biggest one for you. Just one. Is it Paul Giamatti in "Sideways"?

SHAW: It's got to be Paul Giamatti. I think that is horrendous that two Supporting Actors, Virginia Madsen and Thomas Haden Church, both got nominated but Paul Giamatti...

GORDON: I'm broken up about something else. Where is the love for Spongebob? No Spongebob in the animation category for "Shark Tale"?

TOURE: But that's because...

GORDON: That's because, yes, we've got the little...

TOURE: Because he's gay. That's the problem.

SHAW: (UNINTELLIGIBLE) by "90 Second Pop."

HEMMER: Thanks to all three of you. Thanks for sticking around. Here's Soledad.

O'BRIEN: When you step on an eyeball in a movie -- that didn't. Some big name prescription drugs are about to jump up in price. Andy is "Minding Your Business" just ahead.

Plus, resolutions always hard to keep, so why is the Reverend Leigh Ann Raynor tough enough to keep up with the "New You Revolution"? A look at that's ahead as well on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Week two of our "New You Resolution" -- I always want to call it resolution, which was the name last year. But now it's a revolution. We're helping five folks break some bad health habits.

HEMMER: Every Tuesday morning, Sanjay joins us, checks up on their progress or lack thereof. He's at the CNN Center. How are you, doc? Good morning.

SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Hey, good morning, both Bill and Soledad. The first week of the "New You Revolution" was a busy one for all of our participants. They had a cooking class. We got them in the gym for a morning. It was all designed to get everyone off to a good start, but especially for the Reverend Leigh Ann Raynor.

(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: And inhale. And she goes down!

LEIGH ANN RAYNOR, "NEW YOU" PARTICIPANT: I did that well, don't you think?

GUPTA (voice over): She's the reverend. She's almost 50, and she's ready to make a "New You Revolution."

UNIDENTIFIED FEMALE: Lift the hips up.

RAYNOR: That's as far as my hip goes, sweety. I'm finding muscles I had forgotten I had.

GUPTA: No surprise to her that she isn't as limber as she used to be.

RAYNOR: It's difficult because I'm one of the most competitive people I know.

GUPTA: But she does have a key ingredient: determination.

(on camera): So, how are you feeling?

RAYNOR: I feel great.

GUPTA: Yes? No problems at all? Not overdoing it?

RAYNOR: No.

GUPTA (voice over): It's important, because six months ago she had successful heart surgery. Now she watches closely for warning signs.

RAYNOR: Chest pains, dizziness, shortness of breath, because other than that, your only warning sign is sudden cardiac death.

GUPTA: So we're going slow. No more than three miles an hour for now and some mild resistance training. Of course, hand in hand with the exercise comes diet. So we took Leigh Ann and the others to cooking school.

(on camera): Where do you hope to be eight weeks from now?

RAYNOR: Eight weeks from now, I hope to have learned some cooking techniques.

UNIDENTIFIED FEMALE: When you cook your own food, it's always going to taste better and going to be -- it is!

GUPTA: Have you tasted her cooking?

UNIDENTIFIED FEMALE: Have you?

GUPTA: No.

(voice over): But Leigh Ann surprised even herself by cooking her first meal ever for someone else. She made chicken, and along with some healthy mac and cheese and a salad, this meal is filling, and just 500 calories.

With exercise, diet and good old-fashioned willpower, the reverend is well on her way.

RAYNOR: Wish me luck. I'm going to work at it.

(END VIDEOTAPE)

GUPTA: There she is. And our other participants have also had some ups and downs in the first week. Here's there weekly check-up.

(BEGIN VIDEOTAPE)

GUPTA (voice over): For Thekla, the "New You Revolution" is about learning.

THEKLA FISCHER, "NEW YOU" PARTICIPANT: It's teaching me where I've got work to do.

GUPTA: From which areas to strengthen to which foods are best.

Dr. Lisa Missoulu (ph), author of "Before Your Pregnancy," arrived with some useful lessons.

UNIDENTIFIED FEMALE: Women under 35 and particularly between 30 and 35, have about an 85 percent chance of getting pregnant if they try for 12 cycles or one year.

GUPTA: And to dispel some myths.

UNIDENTIFIED FEMALE: Whether you've never been on the pill, on it for 2 years or 10 years, you'll actually get the same ability to be pregnant after that's done.

GUPTA: One week into his "New You Revolution" and already a minor hitch for Jonathan. The doctor's prescription for ending his nail-biting habit: self-monitoring. And the best way?

UNIDENTIFIED MALE: Because you need to save the nails.

JONATHAN KARP, "NEW YOU" PARTICIPANT: If anybody found out, I'd be a certified whack job. It's a good idea, but I wouldn't do it.

GUPTA: Jonathan did agree to the backup plan: Keep a log of how much he bites every day and to reduce stress which may be fueling his habit. He'll try relaxation techniques to keep the biting at bay.

SANDRA GARTH, "NEW YOU" PARTICIPANT: I'm ready. I've committed to do it, and I'm going to do it.

GUPTA: She sure is. Sandra's first week of the "New You Revolution" included some tips from the experts at a cooking school. Out? French toast dripping in syrup. In? Healthy French toast covered in yogurt and fruit.

Even after she went home and the cameras went away, Sandra has been sticking to her plan. Resistance training with her exercise bands and walking and walking. Using her step meter, she's been going about the 10,000 steps recommended by her trainer.

And she's cut back on her food intake. But her nutritionist is telling her to eat more, 1,600 calories a day.

GUPTA (on camera): And next week, we're focusing on Harald, who admits he's addicted to running and he's doing lots of it. The problem is, he's also addicted to food. So is he starting to break those bad habits? We'll ask him.

For now, here are take-home tips for you as well. All of this we learned from week one. Firs of all, don't skip meals, especially if you're going to exercise. It's really important. Find low-calorie versions of your favorite recipes. And wear a pedometer or a step meter so you know when you've taken 10,000 steps. It really seems to help -- Bill and Soledad.

(END VIDEOTAPE)

O'BRIEN: All right, Sanjay, thank you very much.

Well, get ready to dig deeper into your wallet to pay for some popular prescription drugs. Andy is "Minding Your Business," just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. Wall Street is open. We'll get a check on that, the early action there. And the country's most popular prescription drugs getting even more expensive. Andy Serwer is back with us, "Minding Your Business." Good morning to you.

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

First of all, just in, CNN confirming the Congressional Budget Office has a new projections for the federal deficit, budget deficit for the 2005. It's $368 billion. That's up from $348 billion, a projection made in October, $20 billion more.

Interesting, it does not include the costs of the Iraq war, because they are not quantifiable at this point. Also, it doesn't figure the new numbers on Social Security as well. So very preliminary figure, but it is higher, and we'll be talking about that more I'm sure coming up.

Let's check in on the markets, because we have a rally going on of Biblical proportions here. That's the only way to characterize that, up 100 points on the Dow. I'm exaggerating just slightly.

HEMMER: For 2005 that's all right.

SERWER: Yes, for 2005, that's huge.

Dupont and Merrill Lynch coming in with earnings that are above expectations. Also on the health care front, Johnson & Johnson coming in with some nice numbers. Merck as well, earnings as down sharply as you might imagine there because of problems with Vioxx, et cetera, down 21 percent, but still above projections.

Also, they're putting aside $600 million for potential litigation with regard to Vioxx, although some people are saying it will be billions of dollars, not just hundreds of millions of dollars.

Speaking of prescription drugs, a story in "The Wall Street Journal" reporting that prescription drug costs are going up. The drug companies raising prices. Why? Well, we talked about Vioxx, also Celebrex. A lot of those blockbusters having severe downturns in terms of sales; 31 of the 50 largest drugs have had price increases since November. You can see some of them on the screen there.

Interesting since November. Why? Because drug companies like to raise prices after the election. They don't like to do it coming into the election, because then they set themselves up as targets by the politicians. So there's that. There's also some changes in Medicare benefits that would put downward pressure on prices, so they want to raise them now.

But very interesting to see, you knew the drug companies were going to have to make it up somehow after losing all that money with some of those drugs coming off line.

HEMMER: Thank you, Andy.

SERWER: You're welcome.

O'BRIEN: Andy, thanks. Coming up on CNN, the nominations are out. "The Aviator" leads Oscar's gold rush with 11 nods, but is that enough to make it the favorite? Daryn Kagan, Tony Harris are going to have a live report from Los Angeles. That's in the next hour on "CNN LIVE TODAY."

AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

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Aired January 25, 2005 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back, everybody. Just exactly half past the hour on this AMERICAN MORNING.
How exposed will American troops be this Sunday when Iraqis hold their elections? We're learning new details about the military's exact role. Barbara Starr is going to join us in just a few moments to tell us about the dangers Americans will face.

BILL HEMMER, CNN ANCHOR: Also this hour, just a little less than an hour ago, we heard the nomination for this year's Academy Awards. A special edition of "90-Second Pop." We talked to our poppers two hours ago. We got their predictions. We're going to see if they came true in a moment here. The surprises, too, from an hour ago.

O'BRIEN: Headlines first, though. Carol Costello is back for us this morning. Good morning.

CAROL COSTELLO, CNN ANCHOR: I am, for one more last go around. Is that grammatically correct?

O'BRIEN: Yes, it is.

COSTELLO: And then I must bid you adieu.

O'BRIEN: Until tomorrow, right?

COSTELLO: Exactly.

O'BRIEN: A little emotional over here.

COSTELLO: I know.

Good morning to you. Good morning everyone.

Now in the news, a serious story to start off with. An American citizen known to have been kidnapped in Baghdad in November has now appeared in a videotaped statement pleading for his life. The man identifies himself as Roy Hallums. This is an image from that tape. It's not clear when this video was recorded. Attempts by CNN to contact Mr. Hallums' for a response family have been unsuccessful. But the U.S. embassy in Baghdad tells CNN they are in contact with his family, and they do believe that he is a hostage.

Military operations in Iraq and Afghanistan are getting more expensive. A senior administration official saying the White House will ask for another $80 billion, boosting the cost of both conflicts to almost $300 billion. The announcement is expected as early as today.

O'BRIEN: In Cambridge, Massachusetts, opening statements are getting under way in the trial of a defrocked priest charged with sex abuse. Paul Shanley faces three charges of raping a child and two charges of indecent assault and battery on a child. If convicted the maximum sentence would be life in prison. The case is expected to last about two weeks.

And we have been telling you all morning about this: The pro basketball players and fans involved in that big brawl last November may be reunited in a Michigan courtroom. Five Indiana Pacers players and five Detroit Pistons fans have been ordered to attend a pretrial congress today. It is not clear if that I all be before the judge at the same time, but they'll all be in the courthouse at the same time. And it will be interesting to see what the judge has to say to them.

O'BRIEN: Interesting to see the high-priced lawyers versus everybody else's lawyers.

COSTELLO: The public defenders.

O'BRIEN: For the fans, right?

HEMMER: Thanks, Carol.

O'BRIEN: Thanks, Carol.

HEMMER: U.S. senators convene shortly for a final debate on the nomination of Condoleezza Rice as secretary of state. Democrats asked for the debate to highlight their criticism of the war in Iraq and the policies supported there. Nine hours on the schedule.

Ed Henry kicks it off from Capitol Hill.

Has it started yet, Ed?

Good morning.

ED HENRY, CNN CORRESPONDENT: Good morning again, Bill.

It's expected to start about 10:45 Eastern Time this morning. And the obvious question here is, you know, after everyone knows the fact that Condoleezza Rice is going to be confirmed tomorrow. They also know that there were two days where Democrats last week got to grill her pretty hard. So why do they need nine more hours of debate? Democrats basically say it's because they have very sharp policy differences with the White House, especially on Iraq. And since Democrats are out of power, this is one of their only forums, really, to air grievances.

And leading the charge for the Democrats once again is Senator Barbara Boxer. She insisted on CNN this morning that Democrats are not playing political games here.

(BEGIN VIDEO CLIP) SEN. BARBARA BOXER (D), CALIFORNIA: It's important because the United States Senate has this role given to us in the constitution that we are supposed to advise the president and consent to his nominees. This isn't something that we're looking at because we want to have some fun. This is a very serious constitutionally driven responsibility that we have.

(END VIDEO CLIP)

HENRY: But Republicans say this is overkill, that Democrats are actually engaged in petty partisanship. Republicans also frustrated. They believe that Democrats are playing politics with national security, and that it's dangerous to be playing around with a new secretary of state and delaying Condoleezza Rice's elevation to secretary of state at a time of war.

The bottom line here, a lot of rhetoric coming today once again, but tomorrow Condoleezza rice will finally be confirmed.

HEMMER: Ed, before we get to that point, $80 billion is on the table now in additional funding for Iraq and Afghanistan, or will be in about two weeks time. How much of that debate will come on to the Senate floor?

HENRY: You can bet that Democrats like Barbara Boxer, Edward Kennedy are going to be the Senate floor today saying that while they want to support the troops, while they want to send more money to Iraq and Afghanistan, they're concerned that not enough money is being spent on the domestic front here at home, and also you're going to hear those Democrats saying that if they write another check for that money, they want some sort of exit strategy from the White House on Iraq -- Bill.

HEMMER: Ed Henry on Capitol Hill. Thanks, Ed -- Soledad.

O'BRIEN: Just five days to go until Iraq's elections. As U.S. forces prepare for the big day, questions persist on what the next phase in Iraq will hold.

Barbara Starr is at the Pentagon for us this morning.

Good morning, Barbara.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you again, Soledad.

Well, on Election Day, the expectation is that Iraqi security forces will handle security around the polling places, U.S. troops will be in a backup support role, but with every expectation that the violence is going to continue for some time, indeed, military planners are already looking at the next phase.

(BEGIN VIDEOTAPE)

STARR (voice over): As the violence continues just days before the election, the U.S. military is now stepping up efforts to improve the Iraqi security forces' capability to fight for their country. Key to the plan? U.S. military and police advisory teams will be attached directly to Iraqi units to fight the insurgency together. One potential option planners are considering?

BRIG. GEN. MARK KIMMITT, DEP. DIR., U.S. CENTRAL COMMAND: The numbers that we have been working with are somewhere in the order 200 to 250 of these teams and roughly 10 men per team. So, we're talking in total somewhere between 2,200 and 2,700 personnel involved in this process.

STARR: The hope is by making U.S. troops part of Iraqi units, it will increase the Iraqis' confidence. One key advantage? The U.S. will bring along its own firepower.

KIMMITT: If necessary, if the unit needs it, they can bring in artillery support. They can call in for close-air support.

STARR: Officials say the plan is absolutely not the beginning of a strategy to withdraw from combat in favor of training, and that the Iraqis privately tell the Americans they want the U.S. to stay. The U.S. and Iraqis say they still plan to win against the insurgency.

KIMMITT: It won't be black, white, win, lose. First of all, we will not lose. It will be more of a gradual process. We will know that we have achieved the military requirements in Iraq when the Iraqi security forces are capable of taking on all the internal and external security needs for their country.

(END VIDEOTAPE)

STARR: But if the Iraqis can't take over any time soon, top Army officials here in the Pentagon say they are prepared to keep 120,000 U.S. soldiers in Iraq for the next two years -- Soledad.

O'BRIEN: Barbara Starr at the Pentagon for us this morning. Barbara, thanks -- Bill.

HEMMER: Soledad, talking about the weather, take a look at this right now. Hall is frozen over. The scene in Hall, Massachusetts yesterday. You will see ice-encrusted homes on the water. One homeowner, we heard said she had to chip her way out after the storm. That is unbelievable. It looks like a picture of the North Pole from the state of Massachusetts.

(WEATHER REPORT)

HEMMER: We are watching right now the Oscar nominations that came out just about an hour ago. Three hours ago, we had our poppers out here, giving us their predictions. We are visiting with them again. Say hello to Toure and Jessica Shaw from "Entertainment Weekly," and Devin Gordon "Newsweek" magazine.

Welcome, thanks for being patient today.

"Aviator" is going to get the headline, 11 nominations. Two other headlines out there, too, though, "Fahrenheit 9/11," zip, and "Passion of the Christ" got three, but in somewhat minor category.

TOURE, CNN CORRESPONDENT: Yes, cinematography, Best Score, Best Makeup. This is not what we go to the Oscars to win. I mean, it's really surprising, these big two movies that really embodied 2004 -- red state, blue state, what we were all about last year, nothing major here.

HEMMER: They got the attention in the headlines, but the Academy did not give...

JESSICA SHAW, "ENTERTAINMENT WEEKLY." Yes, I don't think this is surprising at all that they didn't get nominations. "Passion" was a phenomenon. "Fahrenheit" was a phenomenon. These were movies that did incredibly well at the box office, but they were not Best Picture movies.

DEVIN GORDON, "NEWSWEEK": Hollywood is a blue state. That's why. Hollywood is a blue state.

TOURE: But then why isn't "Fahrenheit," which was a great movie, why isn't in the Best Picture?

GORDON: Because they lost. They lost. I think, you know, if Bush had lost the election, I think "Fahrenheit 9/11" definitely would have been a nominee.

HEMMER: You believe that? I think the Academy's just reflecting...

GORDON: They would have patted themselves on the back.

HEMMER: ... what every social conversation in America is supposed to stay away from, religion and politics.

SHAW: It also came out quite a while ago. And that often happens with Oscar-nominated movies. If it comes out in the spring or in the summer, people forget about it. That's why "Eternal Sunshine" didn't get the nod.

HEMMER: The buzz starts to buzz the other way. Best Picture. "Aviator" got 11 nominations. I mentioned that. "Finding Neverland" got 7, "Million Dollar Baby" was 7, "Ray" and "Sideways." "Aviator" wins or not?

TOURE: I'm thinking still "Million Dollar Baby." I mean, just the heat that I'm seeing in the other categories. The Best Actor, the supporting categories. "Million Dollar Baby" is right in there. I think it's a two-way race. I think "Sideways" has lost a bit of their momentum. Early, late December, it was "Sideways" is the picture of the year. Now, pull the brakes on that, it's a two-way race. "Aviator," "Million Dollar Baby." You know what I said is going to win.

HEMMER: Yes, I know what you said. Best Actor, Don Cheadle, "Hotel Rwanda"; Johnny Depp, "Finding Neverland"; Leo DiCaprio, "The Aviator"; Clint Eastwood, "Million Dollar Baby." If we got it, put it on the screen. Jamie Foxx in "Ray." Cheadle, a long shot, you thought?

SHAW: Yes. I thought that was a bit of a long shot. It's nice to see the Academy giving "Hotel Rwanda" some love. And in got in. Sophie Okonedo for Supporting Actress. She got a nomination. But I don't know. I kind of thought this was going to -- the fifth slot would be for Paul Giamatti from "Sideways." You know, I thought, God, he's a lock. He would definitely get it. He was nowhere.

HEMMER: Best Actress now. Devin, take a shot at this. Annette Bening, "Being Julia." Catalina Sandino Moreno, not to be confused to with Suzanne Rodana Rodana (ph). Imelda Staunton, "Vera Drake." Hilary Swank, "Million Dollar Baby" and Kate Winslet, "Eternal Sunshine." Rematch, Swank and Annette Bening, right?

GORDON: Yes, this is a category that looks like Hilary Swank is the frontrunner on. But I just keep thinking back to a couple years ago when Adrien Brody won against, like, the greatest collection of actors maybe ever in a category. He was up against Cain, he was up against Nichelson, and yet, Adrien Brody comes out of nowhere and wins. These things happen in the Academy Awards. And I just, for some reason, I have a feeling that that Oscar is ripe for the picking. I think...

SHAW: You're wrong!

TOURE: Where is my girl Uma Thurman? She made two movies, people. Two "Kill Bills." She was awesome and I'm hurt that she's not noticed today.

GORDON: When you step on an eyeball in a movie...

(CROSSTALK)

HEMMER: Snub, biggest one for you. Just one. Is it Paul Giamatti in "Sideways"?

SHAW: It's got to be Paul Giamatti. I think that is horrendous that two Supporting Actors, Virginia Madsen and Thomas Haden Church, both got nominated but Paul Giamatti...

GORDON: I'm broken up about something else. Where is the love for Spongebob? No Spongebob in the animation category for "Shark Tale"?

TOURE: But that's because...

GORDON: That's because, yes, we've got the little...

TOURE: Because he's gay. That's the problem.

SHAW: (UNINTELLIGIBLE) by "90 Second Pop."

HEMMER: Thanks to all three of you. Thanks for sticking around. Here's Soledad.

O'BRIEN: When you step on an eyeball in a movie -- that didn't. Some big name prescription drugs are about to jump up in price. Andy is "Minding Your Business" just ahead.

Plus, resolutions always hard to keep, so why is the Reverend Leigh Ann Raynor tough enough to keep up with the "New You Revolution"? A look at that's ahead as well on AMERICAN MORNING.

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O'BRIEN: Week two of our "New You Resolution" -- I always want to call it resolution, which was the name last year. But now it's a revolution. We're helping five folks break some bad health habits.

HEMMER: Every Tuesday morning, Sanjay joins us, checks up on their progress or lack thereof. He's at the CNN Center. How are you, doc? Good morning.

SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Hey, good morning, both Bill and Soledad. The first week of the "New You Revolution" was a busy one for all of our participants. They had a cooking class. We got them in the gym for a morning. It was all designed to get everyone off to a good start, but especially for the Reverend Leigh Ann Raynor.

(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: And inhale. And she goes down!

LEIGH ANN RAYNOR, "NEW YOU" PARTICIPANT: I did that well, don't you think?

GUPTA (voice over): She's the reverend. She's almost 50, and she's ready to make a "New You Revolution."

UNIDENTIFIED FEMALE: Lift the hips up.

RAYNOR: That's as far as my hip goes, sweety. I'm finding muscles I had forgotten I had.

GUPTA: No surprise to her that she isn't as limber as she used to be.

RAYNOR: It's difficult because I'm one of the most competitive people I know.

GUPTA: But she does have a key ingredient: determination.

(on camera): So, how are you feeling?

RAYNOR: I feel great.

GUPTA: Yes? No problems at all? Not overdoing it?

RAYNOR: No.

GUPTA (voice over): It's important, because six months ago she had successful heart surgery. Now she watches closely for warning signs.

RAYNOR: Chest pains, dizziness, shortness of breath, because other than that, your only warning sign is sudden cardiac death.

GUPTA: So we're going slow. No more than three miles an hour for now and some mild resistance training. Of course, hand in hand with the exercise comes diet. So we took Leigh Ann and the others to cooking school.

(on camera): Where do you hope to be eight weeks from now?

RAYNOR: Eight weeks from now, I hope to have learned some cooking techniques.

UNIDENTIFIED FEMALE: When you cook your own food, it's always going to taste better and going to be -- it is!

GUPTA: Have you tasted her cooking?

UNIDENTIFIED FEMALE: Have you?

GUPTA: No.

(voice over): But Leigh Ann surprised even herself by cooking her first meal ever for someone else. She made chicken, and along with some healthy mac and cheese and a salad, this meal is filling, and just 500 calories.

With exercise, diet and good old-fashioned willpower, the reverend is well on her way.

RAYNOR: Wish me luck. I'm going to work at it.

(END VIDEOTAPE)

GUPTA: There she is. And our other participants have also had some ups and downs in the first week. Here's there weekly check-up.

(BEGIN VIDEOTAPE)

GUPTA (voice over): For Thekla, the "New You Revolution" is about learning.

THEKLA FISCHER, "NEW YOU" PARTICIPANT: It's teaching me where I've got work to do.

GUPTA: From which areas to strengthen to which foods are best.

Dr. Lisa Missoulu (ph), author of "Before Your Pregnancy," arrived with some useful lessons.

UNIDENTIFIED FEMALE: Women under 35 and particularly between 30 and 35, have about an 85 percent chance of getting pregnant if they try for 12 cycles or one year.

GUPTA: And to dispel some myths.

UNIDENTIFIED FEMALE: Whether you've never been on the pill, on it for 2 years or 10 years, you'll actually get the same ability to be pregnant after that's done.

GUPTA: One week into his "New You Revolution" and already a minor hitch for Jonathan. The doctor's prescription for ending his nail-biting habit: self-monitoring. And the best way?

UNIDENTIFIED MALE: Because you need to save the nails.

JONATHAN KARP, "NEW YOU" PARTICIPANT: If anybody found out, I'd be a certified whack job. It's a good idea, but I wouldn't do it.

GUPTA: Jonathan did agree to the backup plan: Keep a log of how much he bites every day and to reduce stress which may be fueling his habit. He'll try relaxation techniques to keep the biting at bay.

SANDRA GARTH, "NEW YOU" PARTICIPANT: I'm ready. I've committed to do it, and I'm going to do it.

GUPTA: She sure is. Sandra's first week of the "New You Revolution" included some tips from the experts at a cooking school. Out? French toast dripping in syrup. In? Healthy French toast covered in yogurt and fruit.

Even after she went home and the cameras went away, Sandra has been sticking to her plan. Resistance training with her exercise bands and walking and walking. Using her step meter, she's been going about the 10,000 steps recommended by her trainer.

And she's cut back on her food intake. But her nutritionist is telling her to eat more, 1,600 calories a day.

GUPTA (on camera): And next week, we're focusing on Harald, who admits he's addicted to running and he's doing lots of it. The problem is, he's also addicted to food. So is he starting to break those bad habits? We'll ask him.

For now, here are take-home tips for you as well. All of this we learned from week one. Firs of all, don't skip meals, especially if you're going to exercise. It's really important. Find low-calorie versions of your favorite recipes. And wear a pedometer or a step meter so you know when you've taken 10,000 steps. It really seems to help -- Bill and Soledad.

(END VIDEOTAPE)

O'BRIEN: All right, Sanjay, thank you very much.

Well, get ready to dig deeper into your wallet to pay for some popular prescription drugs. Andy is "Minding Your Business," just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. Wall Street is open. We'll get a check on that, the early action there. And the country's most popular prescription drugs getting even more expensive. Andy Serwer is back with us, "Minding Your Business." Good morning to you.

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

First of all, just in, CNN confirming the Congressional Budget Office has a new projections for the federal deficit, budget deficit for the 2005. It's $368 billion. That's up from $348 billion, a projection made in October, $20 billion more.

Interesting, it does not include the costs of the Iraq war, because they are not quantifiable at this point. Also, it doesn't figure the new numbers on Social Security as well. So very preliminary figure, but it is higher, and we'll be talking about that more I'm sure coming up.

Let's check in on the markets, because we have a rally going on of Biblical proportions here. That's the only way to characterize that, up 100 points on the Dow. I'm exaggerating just slightly.

HEMMER: For 2005 that's all right.

SERWER: Yes, for 2005, that's huge.

Dupont and Merrill Lynch coming in with earnings that are above expectations. Also on the health care front, Johnson & Johnson coming in with some nice numbers. Merck as well, earnings as down sharply as you might imagine there because of problems with Vioxx, et cetera, down 21 percent, but still above projections.

Also, they're putting aside $600 million for potential litigation with regard to Vioxx, although some people are saying it will be billions of dollars, not just hundreds of millions of dollars.

Speaking of prescription drugs, a story in "The Wall Street Journal" reporting that prescription drug costs are going up. The drug companies raising prices. Why? Well, we talked about Vioxx, also Celebrex. A lot of those blockbusters having severe downturns in terms of sales; 31 of the 50 largest drugs have had price increases since November. You can see some of them on the screen there.

Interesting since November. Why? Because drug companies like to raise prices after the election. They don't like to do it coming into the election, because then they set themselves up as targets by the politicians. So there's that. There's also some changes in Medicare benefits that would put downward pressure on prices, so they want to raise them now.

But very interesting to see, you knew the drug companies were going to have to make it up somehow after losing all that money with some of those drugs coming off line.

HEMMER: Thank you, Andy.

SERWER: You're welcome.

O'BRIEN: Andy, thanks. Coming up on CNN, the nominations are out. "The Aviator" leads Oscar's gold rush with 11 nods, but is that enough to make it the favorite? Daryn Kagan, Tony Harris are going to have a live report from Los Angeles. That's in the next hour on "CNN LIVE TODAY."

AMERICAN MORNING is back in just a moment.

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