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CNN Live At Daybreak

Developments in Michael Jackson's Child Molestation Trial; Microsoft's New Internet Search Engine

Aired February 01, 2005 - 06:00   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.


CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, this is how it all started. Some dramatic new pictures to show you from the first moments of the tsunami disaster.
Also, decked out in white and cheered on by fans. We'll show you the opening day of Michael Jackson's trial.

And it's for your. Your cell phone might be ringing a lot more soon, and you won't like who's on the other end.

It is Tuesday, February 1.

You are watching DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, Iraqi election workers have counted all the ballots by hand. They're now sending those numbers to Baghdad, where they will be entered into a bank of computers. We could have some partial results for you tonight. The official numbers could take up to 10 days, though.

In the meantime, post-election violence leaves two guards dead in the northern Iraqi town of Erbil. Sources say the car bomb exploded near the home of a top Kurdish political official who insurgents have targeted before.

Back here in the States, today is Tom Ridge's last day as homeland security secretary. Ridge gave a farewell speech yesterday. He said the department he helped start after 9/11 has come a long way in a short time.

And Microsoft wants to get in on some of the big bucks that can be made from Web search engines. Microsoft rolled out its own Internet search engine Monday, after several months of testing. More details ahead in our "Business Buzz."

To the forecast center now -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT) COSTELLO: We have seen so many pictures of the tsunami in Southeast Asia. This morning, we have some new video. For the first time we see the 9.0 earthquake that sparked the disaster. This was shot by a man in Banda Aceh who was videotaping a marathon. And take a look here. And you can see the Earth shaking and at some point you can see people holding the ground to steady themselves, waiting for it to be over. Images from that tsunami disaster are still difficult to watch.

Let's head live now to reporter Becky Diamond at the heart of the tragedy, Banda Aceh, Indonesia.

And you have more new pictures to show us this morning. BECKY DIAMOND, CNN CORRESPONDENT: Exactly, Carol.

Well, dramatic video is out today of the tsunami. Now, this happened over a month ago, but the wounds are very fresh in the minds of the people here in Aceh. As the video shows, what you see is actually, as you said before, the earthquake. And this is something we really haven't seen before and it's something that often gets overlooked by people.

The people of Aceh Province suffered dramatically in this earthquake and they were caught completely unaware as they were tending to the injuries sustained due to this earthquake -- falling buildings, cars that had moved, equipment that had fallen, rescue workers came out. And they suspected nothing else. To them, they thought truly the worst was over.

And as you see in the video, the worst was really yet to come. And that's when the water came down. And I've spoken to many people who had frankly never heard of a tsunami before the waters came in. There was one gentleman who, when the earthquake struck, he left his five children sitting outside of his home because he thought that's where they would be safest, and he traveled to a shop that he owned a little distance away. And when he returned, the five children were missing and he has not found them. And this is a typical story here in Aceh.

So these pictures remind everyone of the suffering of these people -- Carol.

COSTELLO: Becky Diamond reporting live for us this morning.

Thank you.

Some post-election violence in Iraq this morning. A Kurdish official says a bomb went off in the northern town of Erbil, near the home of a top Kurdish politician. Two guards were killed. But it's a very different scene elsewhere in Iraq. The northern town of Mosul, where insurgents have struck frequently in the past, has been rather quiet after the election. In the meantime, the Iraqis are busy counting the votes in that is only the beginning. They still have to draft a new constitution. The deadline to get that done is August 15th. The constitution also has to be voted on. That will happen in October in a national referendum. And in December, if the constitution is approved, there will be a vote for a permanent government.

Now, if the constitution is rejected, the whole process has to start all over again.

Back here in the States, the Bush administration is taking some wartime action today. It'll propose a boost in benefits to families of American troops killed in Iraq, Afghanistan and future combat situations. Veterans groups had complained the current tax-free death benefit falls short. The new proposal would hike the one time payment to $100, 000, from $12, 420, and it would boost life insurance benefits to $400, 000, from $250, 000.

One pressing question for President Bush is when will U.S. troops come home from Iraq?

Senate Minority Leader Harry Reid says Democrats want to hear an exit strategy when the president delivers his State of the Union address.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MINORITY LEADER: On Wednesday night, the president needs to spell out a real and understandable plan for the unfinished work ahead, defeat the growing insurgency, rebuild Iraq, increased political participation by all parties, especially Iraq's moderates, and increased international involvement.

(END VIDEO CLIP)

COSTELLO: We'll have more on the Democrats' demands for President Bush at the bottom of the hour. We'll be talking to Congressman Adam Schiff, who serves on the House International Relations Committee.

Plus, you know you can count on CNN for special prime time live coverage of the president's State of the Union address. That's tomorrow night. We'll air it live.

Imagine trying to find 12 people with no preconceived notions about Michael Jackson. That's what's facing attorneys in Santa Maria, California.

CNN's Ted Rowlands has more on day one of jury selection in the Jackson child molestation trial.

(BEGIN VIDEO TAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Michael Jackson, dressed in white, acknowledged his screaming fans as he walked into the courthouse for day one of his criminal trial. In court, Jackson seemed to be at his best behavior, standing up as prospective jurors walked in.

LINDA DEUTSCH, SPECIAL CORRESPONDENT, A.P.: He had a little smile on his face. Some of the jurors appeared quite taken with looking at him. They appeared not to be surprised at who was the defendant in this case. They apparently had been told. But some of them craned their necks to get a better look at him.

ROWLANDS: Over half of the 300 prospective jurors that came through indicated that six months of service was OK with them. The rest asked to be let go for a variety of reasons, as Jackson looked on.

Michael Jackson is accused of molesting a 13-year-old boy at his Neverland Ranch in 2003. If convicted of all of the charges he's facing, he could serve up to 20 years in prison.

Outside the courthouse, hundreds of Jackson's fans spent the day waiting for a glimpse of the pop superstar. In contrast to his arraignment last year, when he danced on the top of his SUV, this time Jackson just waved from the street and again after he got into his car, which seemed to satisfy the crowd.

(on camera): The judge estimates it'll take a few weeks to come up with 12 jurors and eight alternates. Michael Jackson is required to attend the jury selection process, meaning he's expected to be back here when court resumes at 10:00 a.m.

Ted Rowlands, CNN, Santa Maria, California.

(END VIDEO TAPE)

COSTELLO: So let's talk.

Pamela Hayes is a criminal defense attorney and a former federal prosecutor.

She joins us live now.

Good morning.

PAMELA HAYES, FORMER FEDERAL PROSECUTOR: Good morning.

COSTELLO: You know, it always seems to me, in watching these stories about the Michael Jackson trial, it always seems to be just about to go out of control.

Could this get chaotic?

HAYES: It could, but I don't think it will. I think the judge has a firm grip on the trial and the players and as a result I think it'll stay in line.

COSTELLO: I hope so, because outside of the courtroom, it got a bit chaotic yesterday.

HAYES: You know, yesterday, arraignment day, I mean it's been really wild and, you know, he really doesn't have any control over what goes on outside of the courtroom. But they have to try and have the veneer of stability. So I think they understand that.

COSTELLO: Well, let me tell folks what happened out there. There was a scuffle between Jackson supporters and this anti- molestation group called My Private Parts. Apparently one of the Jackson supporters tried to cover up the sign and the police came in and made an arrest.

Why don't they keep those people away from the courthouse altogether?

HAYES: Fortunately, this is the way we do things in America. We have the right to assemble, to protest, to do what we want to. And as long as you do it in an orderly fashion, the courthouse is the place where you go to do that type of thing. So, you know, when they get out of line, that's when they get the hook.

COSTELLO: I guess they have to increase the police presence then.

OK, so the judge wants to interview 750 potential jurors in two days and narrow it down to 12, although he said that, what, they interviewed some, what, 300 the first day, yesterday, and like half of them really wanted to stay for the whole six months.

Is that unusual?

HAYES: No, not in a case like this. First of all, you've got people who have some dull jobs and they'll do anything to get away and they get paid by their jobs for sitting in court and doing their civic duty. So of course you want to stay. This is going to be the hottest show they've got going.

COSTELLO: But isn't there a concern that if someone is too eager to serve on the jury they could have other reasons for serving, like writing a book later or magazine articles or making money off this thing?

HAYES: Absolutely. I don't know what the law is in California, but, you know, we want people to serve. If we could only get a pool of 50 percent of those who want to serve, I think it's a good thing. And 750 people is not going to be enough, in my mind. I've been to trials that have been high profile where we went through 800 people in four weeks.

So I think they're going to need a lot more.

COSTELLO: You know, the sad part to me is the children in this case, whether they're telling the truth or not, are so overshadowed by Michael Jackson. Their pain is getting lost in all of this.

HAYES: Well, their pain is getting lost if they, in fact, have pain. But if they have been forced or, you know, intimidated into making these statements for whatever reason, Michael Jackson's pain is getting lost.

So, you know, it's unfortunate but we just have to wait. And that's why it's so important that we focus on the evidence and what these children have to say. And if they are, in fact, telling the truth and their testimony withstands cross-examination, then Michael Jackson will be in a lot of trouble. COSTELLO: It should be a very interesting trial.

Pamela Hayes, thank you for joining DAYBREAK this morning.

HAYES: Thank you.

OK.

COSTELLO: We have a lot more to tell you about this hour, including a look at how Microsoft hopes to take a bite out of the Internet search engine giant Google.

And what if you're cell phone number goes public? Convince or nuisance? We'll talk with a Georgia State law maker who vows to fight the move.

And we're more than 24 hours away from the State of the Union address, but one congressman already has a take on it. And no surprise here, he's ready to rebut.

But first, here's a look at what else is making news this Tuesday morning.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It's 6:15 Eastern.

Here's what's all new this morning.

Michael Jackson heads back to court. Another 300 prospective jurors will be processed. The judge wants to narrow the jury pool down to 12 jurors and eight alternates.

Senator Hillary Rodham Clinton says it's no big deal. She fainted during a speaking engagement in Buffalo. Clinton blames a stomach virus. She went on to give another speech later in the day.

In money news, oil prices expected to remain high even though OPEC decided against cutting production. Many experts believe OPEC may still cut production before the end of the first quarter. Oil is now at about $48 a barrel.

In culture, former network news anchor Tom Brokaw has a deal to write two books for Random House, but it's not known what he'll write or when he'll write it.

In sports, injured Eagles wide receiver Terrell Owens practiced with the team for the first time since his December ankle injury. At least one teammate said he looked pretty good. But Coach Andy Reid says he still has not decided if Owens will play in the Super Bowl.

Want to make a bet -- Chad. MYERS: OK.

COSTELLO: I bet he'll play.

MYERS: I bet he'll play.

COSTELLO: It's not so much of a bet, is it?

MYERS: I guess nobody wins.

Good morning.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Time now for a little "Business Buzz."

Google has become a household name because of its domination of Internet searching. But Microsoft becomes the latest to try to take a bite out of Google's search engine pie.

Here's Carrie Lee live at the Nasdaq market site -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

The software giant's latest development competing with Google. They have released a full release version of their search engine. A couple of changes here. They had been using Yahoo! technology to power their search engine. Well, now Microsoft is using its own technology. Among other changes, they've revamped the msn.com home page to make the search engine more prominent and they're focusing more on answers, not just links. They're billing the new search engine as a provider of answers. For example, if you click on the music tab, you can search for an artist or a song and then the search engine will provide you with links for sample music. And you can even buy the song through the site. Other things, they're also going to include information from Encarta, which is the electronic encyclopedia on the site. Once again, an effort to provide answers, not just links.

Meanwhile, turning to futures, it looks like we could see a little bit of a weaker open after some gains yesterday. The Dow managed to end higher by 63 points.

Today is the start of a two day Federal Reserve meeting. We'll get the latest decision on interest rates tomorrow. Wall Street widely expecting another hike, probably a 1/4 point hike. In fact, a lot of people thinking that we'll see that at maybe every Fed meeting for the reminder of the year.

One stock to watch, keeping in the search engine space, Google reporting its second quarterly results since becoming a public company. Wall Street looking for $0.77 a share in profits per share.

Carol, that's the latest -- back to you. COSTELLO: Carrie Lee live from the NASDAQ market site.

As if ringing cell phones were not annoying enough, soon they will be dinging and singing and beeping even more. Oh, you're going to hate this. We're going to talk to one Georgia law maker about his fight to stop the madness.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": When you're looking to select a financial adviser, I think one of the first things you want is somebody who is compatible with you. I think that after you have a chance to talk to the person and see if you establish a rapport and you find out about their credentials, probably the next most important thing you want to do is ask them for the names of some people who they've worked with and then you want to talk to those people and find out can you get to this person or do you wind up always speaking to an underling, did the plan that they created for you, did it work out?

I think ultimately you want the performance. You want to make sure that if the person is picking investments for you that they're good investments; that if they're creating a financial plan for you, that you're reaching your goals.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: That was a beautiful shot, wasn't it?

It won't be long until your cell phone number goes public. Soon you can call 411 on your cell to get someone else's cell phone number. Sounds convenient, right? But you know what it opens the door to? Telemarketers.

Georgia State Senator Cecil Staton joins us on the phone from Atlanta.

Good morning.

CECIL STATON (R), GEORGIA STATE SENATE: Good morning, Carol.

COSTELLO: Now, I know there is a bill in Georgia snaking its way through the legislature that would stop this in its tracks. You co- authored this legislation. But first answer this question.

What is so wrong with what some call another convenience?

STATON: Well, it's a good question, Carol.

I think there are a couple of important issues here. One is privacy. Your cell phone number is your private information and you should have a right to decide whether or not it's disclosed, as you said earlier, to telemarketers. But beyond that, I think one of the things we have to consider here is the fact that if, in fact, telemarketers get hold of our numbers, here's a chance that we'll be paying ourselves for their marketing activities, because remember, those minutes are going to come off of your wireless plan and it will cost you money.

COSTELLO: And the do not call list doesn't apply to cell phones, does it?

STATON: No, it does not. That's a federal act. But here in Georgia, we're trying to be preemptive and I give credit to our governor, Sonny Purdue, for supporting this legislation. We're going to make sure that at least in Georgia we protect the rights of cell phone users so that those wireless companies or their agents or affiliates will not be able to sell or put our numbers into a database without our express permission.

COSTELLO: Well, let's explain the legislation further. Basically, the legislation will require written permission to give out a number.

What else?

STATON: Well, that's the heart of it. It's actually very, very simple. We're saying this is private information, it cannot be put into a database or a directory or sold unless the cell phone user gives very explicit permission to the cell phone company. If you don't mind that, if you want your number published, then that's fine, you'll have a right to do that. But you'll also be protected should you choose not to allow your number to be in such directories.

COSTELLO: OK, two questions.

Who would enforce this and what would be the penalty?

STATON: Well, a very good question. This bill will be working its way through our Science and Technology Committee over the next couple of weeks. As the bill stands at the moment, though, I think we're going to be taking a good, hard look at this. It simply says that every deliberate violation of this code of Georgia law is grounds for a civil suit by the aggrieved subscriber that can be aimed at the service supplier or wireless company response for the violation.

Actually, I think that that's pretty strong, because it means that if a wireless company violates this law, then they could face numerous lawsuits from their subscribers.

COSTELLO: Interesting. So who would enforce it? Did you say that somewhere in there?

STATON: It's a civil -- it would be civil at this particular moment, rather than criminal. In other words, you would be able to file a lawsuit against the wireless company.

COSTELLO: So really it would be up to the person, the consumer, to enforce the law? STATON: Well, it would be up to the consumer to initiate it, to say that I have been harmed or that I -- my rights have been violated. And then it would go from there. But as I said, we're going to be taking a good, hard look at that as the bill moves through our committees in the state senate and it could end up different. But that's the way it's written at the moment.

COSTELLO: All right, well, we'll follow that piece of legislation through the process.

Georgia State Senator Cecil Staton joining us live on DAYBREAK this morning.

Thank you.

Of course, cell phones aren't the only issue -- aren't the issue in another Southern state. It's land lines. Two tiny towns in Louisiana are finally bringing in 20th century technology in the 21st century. Mink and nearby Shaw are two of the last places in the country to get phone service, you know, the old-fashioned kind? And that first call came from Louisiana's governor.

(BEGIN VIDEO CLIP)

GOV. KATHLEEN BLANCO, LOUISIANA: How are you enjoying having that telephone?

ALMA LOUISE BOLTON: I'm loving every minute of it.

BLANCO: Your children and grandchildren are going to love it, too, aren't they?

BOLTON: Oh, they are. They're so happy. We're all so thankful for it.

BLANCO: Well, that is terrific.

BOLTON: Yes.

BLANCO: Yes, I tried to call your line a little bit. Now, I was -- I got a busy signal and I was wondering if telemarketers had already gotten to you.

BOLTON: Not yet. Not yet.

(END VIDEO CLIP)

COSTELLO: And I'm wondering where she got that phone. She doesn't even have a wireless phone. Some residents actually do have cell phones, but they say the reception there is spotty at best.

Iraq's election gives President Bush a lot to brag about tomorrow night, and that means the Democrats have their work cut out from them. Congressman Adam Schiff joins us live to talk about their strategy.

Plus, how worried are Americans about their money? Our friends at Gallup will tell us more how you feel.

Stick around.

(COMMERCIAL BREAK)

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Aired February 1, 2005 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, this is how it all started. Some dramatic new pictures to show you from the first moments of the tsunami disaster.
Also, decked out in white and cheered on by fans. We'll show you the opening day of Michael Jackson's trial.

And it's for your. Your cell phone might be ringing a lot more soon, and you won't like who's on the other end.

It is Tuesday, February 1.

You are watching DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, Iraqi election workers have counted all the ballots by hand. They're now sending those numbers to Baghdad, where they will be entered into a bank of computers. We could have some partial results for you tonight. The official numbers could take up to 10 days, though.

In the meantime, post-election violence leaves two guards dead in the northern Iraqi town of Erbil. Sources say the car bomb exploded near the home of a top Kurdish political official who insurgents have targeted before.

Back here in the States, today is Tom Ridge's last day as homeland security secretary. Ridge gave a farewell speech yesterday. He said the department he helped start after 9/11 has come a long way in a short time.

And Microsoft wants to get in on some of the big bucks that can be made from Web search engines. Microsoft rolled out its own Internet search engine Monday, after several months of testing. More details ahead in our "Business Buzz."

To the forecast center now -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT) COSTELLO: We have seen so many pictures of the tsunami in Southeast Asia. This morning, we have some new video. For the first time we see the 9.0 earthquake that sparked the disaster. This was shot by a man in Banda Aceh who was videotaping a marathon. And take a look here. And you can see the Earth shaking and at some point you can see people holding the ground to steady themselves, waiting for it to be over. Images from that tsunami disaster are still difficult to watch.

Let's head live now to reporter Becky Diamond at the heart of the tragedy, Banda Aceh, Indonesia.

And you have more new pictures to show us this morning. BECKY DIAMOND, CNN CORRESPONDENT: Exactly, Carol.

Well, dramatic video is out today of the tsunami. Now, this happened over a month ago, but the wounds are very fresh in the minds of the people here in Aceh. As the video shows, what you see is actually, as you said before, the earthquake. And this is something we really haven't seen before and it's something that often gets overlooked by people.

The people of Aceh Province suffered dramatically in this earthquake and they were caught completely unaware as they were tending to the injuries sustained due to this earthquake -- falling buildings, cars that had moved, equipment that had fallen, rescue workers came out. And they suspected nothing else. To them, they thought truly the worst was over.

And as you see in the video, the worst was really yet to come. And that's when the water came down. And I've spoken to many people who had frankly never heard of a tsunami before the waters came in. There was one gentleman who, when the earthquake struck, he left his five children sitting outside of his home because he thought that's where they would be safest, and he traveled to a shop that he owned a little distance away. And when he returned, the five children were missing and he has not found them. And this is a typical story here in Aceh.

So these pictures remind everyone of the suffering of these people -- Carol.

COSTELLO: Becky Diamond reporting live for us this morning.

Thank you.

Some post-election violence in Iraq this morning. A Kurdish official says a bomb went off in the northern town of Erbil, near the home of a top Kurdish politician. Two guards were killed. But it's a very different scene elsewhere in Iraq. The northern town of Mosul, where insurgents have struck frequently in the past, has been rather quiet after the election. In the meantime, the Iraqis are busy counting the votes in that is only the beginning. They still have to draft a new constitution. The deadline to get that done is August 15th. The constitution also has to be voted on. That will happen in October in a national referendum. And in December, if the constitution is approved, there will be a vote for a permanent government.

Now, if the constitution is rejected, the whole process has to start all over again.

Back here in the States, the Bush administration is taking some wartime action today. It'll propose a boost in benefits to families of American troops killed in Iraq, Afghanistan and future combat situations. Veterans groups had complained the current tax-free death benefit falls short. The new proposal would hike the one time payment to $100, 000, from $12, 420, and it would boost life insurance benefits to $400, 000, from $250, 000.

One pressing question for President Bush is when will U.S. troops come home from Iraq?

Senate Minority Leader Harry Reid says Democrats want to hear an exit strategy when the president delivers his State of the Union address.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MINORITY LEADER: On Wednesday night, the president needs to spell out a real and understandable plan for the unfinished work ahead, defeat the growing insurgency, rebuild Iraq, increased political participation by all parties, especially Iraq's moderates, and increased international involvement.

(END VIDEO CLIP)

COSTELLO: We'll have more on the Democrats' demands for President Bush at the bottom of the hour. We'll be talking to Congressman Adam Schiff, who serves on the House International Relations Committee.

Plus, you know you can count on CNN for special prime time live coverage of the president's State of the Union address. That's tomorrow night. We'll air it live.

Imagine trying to find 12 people with no preconceived notions about Michael Jackson. That's what's facing attorneys in Santa Maria, California.

CNN's Ted Rowlands has more on day one of jury selection in the Jackson child molestation trial.

(BEGIN VIDEO TAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Michael Jackson, dressed in white, acknowledged his screaming fans as he walked into the courthouse for day one of his criminal trial. In court, Jackson seemed to be at his best behavior, standing up as prospective jurors walked in.

LINDA DEUTSCH, SPECIAL CORRESPONDENT, A.P.: He had a little smile on his face. Some of the jurors appeared quite taken with looking at him. They appeared not to be surprised at who was the defendant in this case. They apparently had been told. But some of them craned their necks to get a better look at him.

ROWLANDS: Over half of the 300 prospective jurors that came through indicated that six months of service was OK with them. The rest asked to be let go for a variety of reasons, as Jackson looked on.

Michael Jackson is accused of molesting a 13-year-old boy at his Neverland Ranch in 2003. If convicted of all of the charges he's facing, he could serve up to 20 years in prison.

Outside the courthouse, hundreds of Jackson's fans spent the day waiting for a glimpse of the pop superstar. In contrast to his arraignment last year, when he danced on the top of his SUV, this time Jackson just waved from the street and again after he got into his car, which seemed to satisfy the crowd.

(on camera): The judge estimates it'll take a few weeks to come up with 12 jurors and eight alternates. Michael Jackson is required to attend the jury selection process, meaning he's expected to be back here when court resumes at 10:00 a.m.

Ted Rowlands, CNN, Santa Maria, California.

(END VIDEO TAPE)

COSTELLO: So let's talk.

Pamela Hayes is a criminal defense attorney and a former federal prosecutor.

She joins us live now.

Good morning.

PAMELA HAYES, FORMER FEDERAL PROSECUTOR: Good morning.

COSTELLO: You know, it always seems to me, in watching these stories about the Michael Jackson trial, it always seems to be just about to go out of control.

Could this get chaotic?

HAYES: It could, but I don't think it will. I think the judge has a firm grip on the trial and the players and as a result I think it'll stay in line.

COSTELLO: I hope so, because outside of the courtroom, it got a bit chaotic yesterday.

HAYES: You know, yesterday, arraignment day, I mean it's been really wild and, you know, he really doesn't have any control over what goes on outside of the courtroom. But they have to try and have the veneer of stability. So I think they understand that.

COSTELLO: Well, let me tell folks what happened out there. There was a scuffle between Jackson supporters and this anti- molestation group called My Private Parts. Apparently one of the Jackson supporters tried to cover up the sign and the police came in and made an arrest.

Why don't they keep those people away from the courthouse altogether?

HAYES: Fortunately, this is the way we do things in America. We have the right to assemble, to protest, to do what we want to. And as long as you do it in an orderly fashion, the courthouse is the place where you go to do that type of thing. So, you know, when they get out of line, that's when they get the hook.

COSTELLO: I guess they have to increase the police presence then.

OK, so the judge wants to interview 750 potential jurors in two days and narrow it down to 12, although he said that, what, they interviewed some, what, 300 the first day, yesterday, and like half of them really wanted to stay for the whole six months.

Is that unusual?

HAYES: No, not in a case like this. First of all, you've got people who have some dull jobs and they'll do anything to get away and they get paid by their jobs for sitting in court and doing their civic duty. So of course you want to stay. This is going to be the hottest show they've got going.

COSTELLO: But isn't there a concern that if someone is too eager to serve on the jury they could have other reasons for serving, like writing a book later or magazine articles or making money off this thing?

HAYES: Absolutely. I don't know what the law is in California, but, you know, we want people to serve. If we could only get a pool of 50 percent of those who want to serve, I think it's a good thing. And 750 people is not going to be enough, in my mind. I've been to trials that have been high profile where we went through 800 people in four weeks.

So I think they're going to need a lot more.

COSTELLO: You know, the sad part to me is the children in this case, whether they're telling the truth or not, are so overshadowed by Michael Jackson. Their pain is getting lost in all of this.

HAYES: Well, their pain is getting lost if they, in fact, have pain. But if they have been forced or, you know, intimidated into making these statements for whatever reason, Michael Jackson's pain is getting lost.

So, you know, it's unfortunate but we just have to wait. And that's why it's so important that we focus on the evidence and what these children have to say. And if they are, in fact, telling the truth and their testimony withstands cross-examination, then Michael Jackson will be in a lot of trouble. COSTELLO: It should be a very interesting trial.

Pamela Hayes, thank you for joining DAYBREAK this morning.

HAYES: Thank you.

OK.

COSTELLO: We have a lot more to tell you about this hour, including a look at how Microsoft hopes to take a bite out of the Internet search engine giant Google.

And what if you're cell phone number goes public? Convince or nuisance? We'll talk with a Georgia State law maker who vows to fight the move.

And we're more than 24 hours away from the State of the Union address, but one congressman already has a take on it. And no surprise here, he's ready to rebut.

But first, here's a look at what else is making news this Tuesday morning.

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COSTELLO: Your news, money, weather and sports.

It's 6:15 Eastern.

Here's what's all new this morning.

Michael Jackson heads back to court. Another 300 prospective jurors will be processed. The judge wants to narrow the jury pool down to 12 jurors and eight alternates.

Senator Hillary Rodham Clinton says it's no big deal. She fainted during a speaking engagement in Buffalo. Clinton blames a stomach virus. She went on to give another speech later in the day.

In money news, oil prices expected to remain high even though OPEC decided against cutting production. Many experts believe OPEC may still cut production before the end of the first quarter. Oil is now at about $48 a barrel.

In culture, former network news anchor Tom Brokaw has a deal to write two books for Random House, but it's not known what he'll write or when he'll write it.

In sports, injured Eagles wide receiver Terrell Owens practiced with the team for the first time since his December ankle injury. At least one teammate said he looked pretty good. But Coach Andy Reid says he still has not decided if Owens will play in the Super Bowl.

Want to make a bet -- Chad. MYERS: OK.

COSTELLO: I bet he'll play.

MYERS: I bet he'll play.

COSTELLO: It's not so much of a bet, is it?

MYERS: I guess nobody wins.

Good morning.

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COSTELLO: Those are the latest headlines for you this morning.

Time now for a little "Business Buzz."

Google has become a household name because of its domination of Internet searching. But Microsoft becomes the latest to try to take a bite out of Google's search engine pie.

Here's Carrie Lee live at the Nasdaq market site -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Hi, Carol.

The software giant's latest development competing with Google. They have released a full release version of their search engine. A couple of changes here. They had been using Yahoo! technology to power their search engine. Well, now Microsoft is using its own technology. Among other changes, they've revamped the msn.com home page to make the search engine more prominent and they're focusing more on answers, not just links. They're billing the new search engine as a provider of answers. For example, if you click on the music tab, you can search for an artist or a song and then the search engine will provide you with links for sample music. And you can even buy the song through the site. Other things, they're also going to include information from Encarta, which is the electronic encyclopedia on the site. Once again, an effort to provide answers, not just links.

Meanwhile, turning to futures, it looks like we could see a little bit of a weaker open after some gains yesterday. The Dow managed to end higher by 63 points.

Today is the start of a two day Federal Reserve meeting. We'll get the latest decision on interest rates tomorrow. Wall Street widely expecting another hike, probably a 1/4 point hike. In fact, a lot of people thinking that we'll see that at maybe every Fed meeting for the reminder of the year.

One stock to watch, keeping in the search engine space, Google reporting its second quarterly results since becoming a public company. Wall Street looking for $0.77 a share in profits per share.

Carol, that's the latest -- back to you. COSTELLO: Carrie Lee live from the NASDAQ market site.

As if ringing cell phones were not annoying enough, soon they will be dinging and singing and beeping even more. Oh, you're going to hate this. We're going to talk to one Georgia law maker about his fight to stop the madness.

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(BEGIN VIDEO CLIP)

WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": When you're looking to select a financial adviser, I think one of the first things you want is somebody who is compatible with you. I think that after you have a chance to talk to the person and see if you establish a rapport and you find out about their credentials, probably the next most important thing you want to do is ask them for the names of some people who they've worked with and then you want to talk to those people and find out can you get to this person or do you wind up always speaking to an underling, did the plan that they created for you, did it work out?

I think ultimately you want the performance. You want to make sure that if the person is picking investments for you that they're good investments; that if they're creating a financial plan for you, that you're reaching your goals.

(END VIDEO CLIP)

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COSTELLO: That was a beautiful shot, wasn't it?

It won't be long until your cell phone number goes public. Soon you can call 411 on your cell to get someone else's cell phone number. Sounds convenient, right? But you know what it opens the door to? Telemarketers.

Georgia State Senator Cecil Staton joins us on the phone from Atlanta.

Good morning.

CECIL STATON (R), GEORGIA STATE SENATE: Good morning, Carol.

COSTELLO: Now, I know there is a bill in Georgia snaking its way through the legislature that would stop this in its tracks. You co- authored this legislation. But first answer this question.

What is so wrong with what some call another convenience?

STATON: Well, it's a good question, Carol.

I think there are a couple of important issues here. One is privacy. Your cell phone number is your private information and you should have a right to decide whether or not it's disclosed, as you said earlier, to telemarketers. But beyond that, I think one of the things we have to consider here is the fact that if, in fact, telemarketers get hold of our numbers, here's a chance that we'll be paying ourselves for their marketing activities, because remember, those minutes are going to come off of your wireless plan and it will cost you money.

COSTELLO: And the do not call list doesn't apply to cell phones, does it?

STATON: No, it does not. That's a federal act. But here in Georgia, we're trying to be preemptive and I give credit to our governor, Sonny Purdue, for supporting this legislation. We're going to make sure that at least in Georgia we protect the rights of cell phone users so that those wireless companies or their agents or affiliates will not be able to sell or put our numbers into a database without our express permission.

COSTELLO: Well, let's explain the legislation further. Basically, the legislation will require written permission to give out a number.

What else?

STATON: Well, that's the heart of it. It's actually very, very simple. We're saying this is private information, it cannot be put into a database or a directory or sold unless the cell phone user gives very explicit permission to the cell phone company. If you don't mind that, if you want your number published, then that's fine, you'll have a right to do that. But you'll also be protected should you choose not to allow your number to be in such directories.

COSTELLO: OK, two questions.

Who would enforce this and what would be the penalty?

STATON: Well, a very good question. This bill will be working its way through our Science and Technology Committee over the next couple of weeks. As the bill stands at the moment, though, I think we're going to be taking a good, hard look at this. It simply says that every deliberate violation of this code of Georgia law is grounds for a civil suit by the aggrieved subscriber that can be aimed at the service supplier or wireless company response for the violation.

Actually, I think that that's pretty strong, because it means that if a wireless company violates this law, then they could face numerous lawsuits from their subscribers.

COSTELLO: Interesting. So who would enforce it? Did you say that somewhere in there?

STATON: It's a civil -- it would be civil at this particular moment, rather than criminal. In other words, you would be able to file a lawsuit against the wireless company.

COSTELLO: So really it would be up to the person, the consumer, to enforce the law? STATON: Well, it would be up to the consumer to initiate it, to say that I have been harmed or that I -- my rights have been violated. And then it would go from there. But as I said, we're going to be taking a good, hard look at that as the bill moves through our committees in the state senate and it could end up different. But that's the way it's written at the moment.

COSTELLO: All right, well, we'll follow that piece of legislation through the process.

Georgia State Senator Cecil Staton joining us live on DAYBREAK this morning.

Thank you.

Of course, cell phones aren't the only issue -- aren't the issue in another Southern state. It's land lines. Two tiny towns in Louisiana are finally bringing in 20th century technology in the 21st century. Mink and nearby Shaw are two of the last places in the country to get phone service, you know, the old-fashioned kind? And that first call came from Louisiana's governor.

(BEGIN VIDEO CLIP)

GOV. KATHLEEN BLANCO, LOUISIANA: How are you enjoying having that telephone?

ALMA LOUISE BOLTON: I'm loving every minute of it.

BLANCO: Your children and grandchildren are going to love it, too, aren't they?

BOLTON: Oh, they are. They're so happy. We're all so thankful for it.

BLANCO: Well, that is terrific.

BOLTON: Yes.

BLANCO: Yes, I tried to call your line a little bit. Now, I was -- I got a busy signal and I was wondering if telemarketers had already gotten to you.

BOLTON: Not yet. Not yet.

(END VIDEO CLIP)

COSTELLO: And I'm wondering where she got that phone. She doesn't even have a wireless phone. Some residents actually do have cell phones, but they say the reception there is spotty at best.

Iraq's election gives President Bush a lot to brag about tomorrow night, and that means the Democrats have their work cut out from them. Congressman Adam Schiff joins us live to talk about their strategy.

Plus, how worried are Americans about their money? Our friends at Gallup will tell us more how you feel.

Stick around.

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