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CNN Live At Daybreak

Reactions to the State of the Union; Bush's Social Security Plans

Aired February 03, 2005 - 05:00   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.


(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If whole regions of the world remain in despair and grow in hatred, they will be the recruiting grounds for terror and that terror will stalk America and other free nations for decades.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, a warning from President Bush and a message for terrorists. We've got the State of the Union highlights and the day after reactions.

Plus, within the last hour, an update on the pope, hospitalized with breathing problems. We'll have a live report from Rome for you in 13 minutes.

And front page news in the U.K., the Michael Jackson child molestation case. We'll take you live to London for a look at the tabloids there.

It is Thursday, February 3.

This is 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, the prime minister of Georgia has been found dead. Gas poisoning is suspected. But an investigation has been ordered. Zurab Zhvania was a key leader in the movement that toppled Eduard Shevardnadze.

A lapse in judgment, that's what Paul Volker thinks about the U.N.'s Oil For Food Program in Iraq. Volker heads the panel investigating the program. An interim report puts part of the blame on the U.N. official who was in charge.

General Electric says it will not accept any new business in Iran. A company spokesman cites uncertain conditions. Senator Frank Lautenberg of New Jersey has criticized G.E., saying it took blood money because Iran sponsors terrorism.

And a little more than two hours ago, an Atlas 3 rocket lifted off from Cape Canaveral, Florida. It's carrying a satellite that will be used for national security.

To the forecast center -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: President Bush takes his message on reforming Social Security to North Dakota today. Overhauling the program was one of the highlights in his State of the Union address last night.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes. We must ensure that lower income Americans get the help they need to have dignity and peace of mind in their retirement. We must guarantee there is no change for those now retired or nearing retirement. And we must take care that any changes in the system are gradual, so younger workers have years to prepare and plan for their future.

(END VIDEO CLIP)

COSTELLO: The president also talked about a budget plan that will eliminate a number of programs, all in the interests of saving tax dollars.

(BEGIN VIDEO CLIP)

BUSH: My budget substantially reduces or eliminates more than 150 government programs that are not getting results or duplicate current efforts or do not fulfill essential priorities. The principle here is clear -- taxpayer dollars must be spent wisely or not at all.

(END VIDEO CLIP)

COSTELLO: Of course, the president also talked about Iraq and its national elections. He said the successful elections prove his policy there is working. He adds U.S. efforts there are part of a larger quest to encourage freedom around the world. The president also talked about Israeli-Palestinian relations. He's pledged to give $350 million to support political, economic and security efforts in the Palestinian territories. Now, that $350 million should make Palestinian Authority President Mahmoud Abbas very happy.

Let's get some reaction to the president's comments.

Our Guy Raz has more for us from Jerusalem -- hello, Guy.

GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.

Indeed, reaction from Palestinian officials has been positive to the news that the president will seek an additional $350 million in aid to the Palestinian National Authority. Now, that money will essentially be used to rebuild and reconstruct much of the infrastructure in the Palestinian territories that has been damaged or destroyed in the past four years of fighting.

Now, on average, the Palestinian Authority received about $75 million in U.S. aid per annum. Now, with this increase in aid, the Bush administration clearly signaling its confidence in the new Palestinian leadership, particularly in the new Palestinian president, Mahmoud Abbas. And underlining the Bush administration's stated pledge to re-engage in the Middle East peace process is this weekend's visit of Condoleezza Rice, the U.S. secretary of state.

She arrives to the region on Sunday. She'll hold bilateral talks with Israeli and Palestinian leaders separately, an effort, essentially, to bolster the momentum that now exists between both sides.

Now, shortly after Condoleezza Rice leaves the region, a landmark Mideast summit is set to take place in Egypt. That meeting will include leaders from Jordan and Egypt, of course; Israel and the Palestinian Authority President Mahmoud Abbas, the most high level meeting between Israeli and Palestinian leaders now in two years -- Carol.

COSTELLO: Guy Raz reporting live from Jerusalem this morning.

Thank you.

President Bush is also promising to fix Social Security, which he claims is heading for bankruptcy. In his State of the Union, the president said younger workers should be allowed to divert part of their Social Security taxes into stocks and bonds.

CNN's Allan Chernoff talked with one couple that put their nest egg in the stock market.

(BEGIN VIDEO TAPE)

DON KUTHE, STORE CLERK: Let me see what size it is first.

ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): Don Kuthe never thought he'd have to work at age 70, never thought he'd be helping at a hardware store to make ends meet. But that was before his stock investments collapsed five years ago.

D. KUTHE: The way the stocks were going up at that time, it was, you know, it was great. So I felt secure at that particular point, false security, unfortunately.

CHERNOFF: Kuthe, a former electrical contractor, calculates he and his wife Joan lost more than one third of their nest egg, and it wasn't much to begin with. Their savings was down to about $30,000.

(on camera): The Kuthes couldn't afford to lose money in the stock market because they had failed to save much for retirement. They depend upon Social Security and some help from their kids, one of whom bought this house for them. JOAN KUTHE: We're very reliant on Social Security. We couldn't manage without, you know, Don gets a decent Social Security.

CHERNOFF (voice-over): Given their experience, the Kuthes oppose the president's plan to let younger Americans invest some Social Security money in stocks.

D. KUTHE: It is working fine. Why do you want to fix something that's not broken? I don't understand it.

CHERNOFF: The Kuthes say they understand there's no danger to their Social Security benefits, $27,000 a year, and they've heard the system may be facing serious financial strain. Even so, for the sake of their children and grandchildren, they want to send a message to President Bush -- Social Security is no place to let people risk their money.

D. KUTHE: If he were sensitive, he wouldn't monkey around with everybody's livelihood. You know, he doesn't live in the real world.

CHERNOFF: The stability of Social Security is even more important for the Kuthes because of health problems that have come with advancing age. Don takes pills for high blood pressure and a bad back, and insulin for diabetes. Joan has had minor strokes, four operations on her right shoulder and this week one on the left.

D. KUTHE: The golden years are not for sissies. It's tough.

CHERNOFF: The golden years have been anything but for the Kuthes, which is why they warn you never know just how much you may need Social Security.

(END VIDEO TAPE)

COSTELLO: That report from Allan Chernoff of CNN Financial News.

In the Democratic response to the State of the Union, Senate Minority Leader Harry Reid called the president's Social Security proposals "dangerous and wrong." In fact, when the president was talking about them in the State of the Union, you heard boos from the audience, and that does not happen very often during these events.

That brings us to today's DAYBREAK E-Mail Question. Social Security -- leave it alone or time for a change? Did the president's speech last night make you feel any better about his proposed plans to change Social Security? We want to know what you think this morning so e-mail us at daybreak@cnn.com. That's daybreak@cnn.com.

In other news across America this morning, about 100 Marines have returned home from Iraq. They got a very warm welcome from family and friends at Miramar Air Station in California. They've been deployed since last summer. More members of the 3rd Marine Aircraft Wing will be coming home in a few weeks. Four Marines from the unit were killed in that tragic helicopter crash near Baghdad last week.

Three youngsters from Camden, New Jersey got a cool prize for their hard work. They're going to the Super Bowl. The tickets and transportation were given by an anonymous donor as the prize for a Camden Boys & Girls Club essay contest.

Now for some great pictures from Hawaii. Lava from the Kilauea volcano has carved two new paths into the ocean. The new molten rivers have drawn crowds to watch the natural show. Kilauea has been erupting continuously since 1983.

We're taking you around the world on DAYBREAK this morning.

First, is the United Kingdom united in its support of Michael Jackson? That's a big story over there. We'll get a live report from London about how the trial is playing overseas.

Also ahead, the pope has a long hospital stay ahead of him. We'll have the latest on his health live from Rome.

And the amazing stories of survival after the tsunami are not over. We'll take you back to Indonesia.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: A doctor at Gemelli Hospital in Rome says Pope John Paul II is expected to remain there about a week. The doctor says laboratory tests on the 84-year-old pope have yielded satisfactory results.

CNN's Allessio Vinci has a live report now from outside of the hospital -- good morning, Alessio.

ALESSIO VINCI, CNN CORRESPONDENT: Good morning to you, Carol.

Well, first of all, let me tell you what Vatican officials are telling. Last night, one Vatican official telling reporters -- he was one of the few who actually had the chance to see the pope -- says the pope is actually recovering well, that he's responding well to the treatment that has been given to him. And Dr. Joaquin Navarro-Valls, who is actually a doctor himself but also happens to be the chief Vatican spokesman, met reporters this morning, saying that the pope had a good night of sleep and that in his experience the pope will spend at least another week or at least seven days at the hospital before being, perhaps, returning to the Vatican.

There are also some rumors which we haven't been able to confirm independently, but we understand that the Vatican is making some provisions for allowing the pope on Sunday to recite his own Angelus, the prayer that he does every Sunday, from here, from his hospital bed. This is something that he has done in the past before, so there's nothing new here. But certainly the Vatican this morning trying to put a positive spin on the situation, saying, again, of course, that the recovery, that the pope was admitted to the hospital because of precautionary measures, but also because -- and there was nothing to be alarmed with -- back to you, Carol.

COSTELLO: Alessio Vinci reporting live from Rome this morning.

Thank you.

Your news, money, weather and sports.

It's 5:15 Eastern.

Here's what's all new this morning.

President Bush is taking his case for Social Security reform on the road to four states. The first stop? North Dakota. In last night's State of the Union address he said the entire Social Security is in danger of being "exhausted and bankrupt."

The Marine Corps may need a few more good men and women. For the first time in nearly a decade, the Corps missed its monthly recruiting target in January. The Marines say the number was merely an internal goal and the number of troops is on target.

In money news, the Fed's done it again. A key interest rate has gone up another 1/4 point. It's the sixth straight increase since last June. The rate now stands at 2.5 percent.

In culture, Martha Stewart will host a spin-off version of NBC's hit "The Apprentice." The network says the format will be changed slightly to fit her style. Stewart gets out of prison on March 4, but then she'll be confined to her home for five more months.

In sports, the Los Angeles Lakers coach is stepping down as head coach, citing medical concerns and stress. He'd come out of retirement to replace Phil Jackson as the Lakers coach this season. Now, some reports say Jackson is at the top of the Lakers' wish list for a new coach.

To the forecast center and Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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

The Super Bowl will be played on the real green stuff this weekend. But is artificial turf endangering some NFL players?

And we'll tell you what questions potential jurors faced in the Michael Jackson trial.

You are watching DAYBREAK for a Thursday.

(COMMERCIAL BREAK)

COSTELLO: Attorneys in the Michael Jackson case are taking the next few days to try to get inside the heads of potential jurors. CNN's Ted Rowlands has more on questions the jury pool had to answer before they could be considered for the final panel.

(BEGIN VIDEO TAPE) TED ROWLANDS, CNN CORRESPONDENT (voice-over): Have you or any relative or close friend ever been the victim of inappropriate sexual behavior of any kind? Have you or any relative or close friend ever been accused of inappropriate sexual behavior? These are two of the 41 questions asked of potential jurors in the Michael Jackson case. Age, sex, race and occupation are also included in the four and a half page questionnaire, along with questions about Jackson himself, sexual abuse and lawsuits.

Have you or a family member ever made any type of claim for money damages? Have you ever worked or volunteered for a child advocacy group or for a group dealing with child safety, child abuse or mistreatment or children's rights? Jurors were also asked if they themselves, or any acquaintances, had met Jackson or spent time at Neverland, where Jackson has employed hundreds of locals.

Missing from the questionnaire, anything about Michael Jackson's music.

JAYNE WEINTRAUB, DEFENSE ATTORNEY: I wanted to know did they or anybody in their family ever collect Michael Jackson albums, were they fans of his, have they ever seen him in concert, did they -- do they know what moonwalk is?

ROWLANDS: Another question involves an issue the judge in the case has yet to rule on, the past allegations of abuse against Michael Jackson. Do you know or have you read, seen or heard anything about the publicity regarding the 1993-1994 investigation against Michael Jackson?

Lawyers on both sides have until Monday to review the questionnaires, at which point they can ask each potential juror face- to-face about their answers. Eventually, the pool of about 250 will be whittled down to 12 jurors and eight alternates, who will be asked to decide Michael Jackson's fate.

Ted Rowlands, CNN, Los Angeles.

(END VIDEO TAPE)

COSTELLO: And the Michael Jackson trial is not just stealing headlines here in the United States. The kop has legions of loyal fans in the U.K.

So live to London now and "Time" magazine's James Inverne to see how Britain's press is handling this story.

And, you know, James, many Americans are tired of hearing about it here in the United States.

Are people really that interested over there? JAMES INVERNE, "TIME" MAGAZINE: Yes and no. I mean it's not the phenomenon that it was the last time around. On the other hand, you know, there's this whole myth about Michael Jackson, well, in fact, it's not a myth, it's part of the American Dream, you know, which, in many cases, is very true, and was in his case. You know, he built himself up with the aid, albeit, of a domineering father, and became this great pop legend and seemed to have everything that all of us want, I mean those of us, you know, that used to dance in our beds with our hairbrush in our hands singing Beatles hits. Of course, I never did anything like that.

But then it's all gone sort of spectacularly wrong, you know, both physically, because he seems to have become this, you know, grotesque monster, although we know he has reasons for that, so he says; and, of course, with these awful charges brought against him.

So there's this fascination. It's almost taking on the aspects of a great Shakespearean drama. And, in fact, you know, it may be no coincidence that many of the great works of American culture by, you know, the plays of Tennessee Williams and Arthur Miller are all about this idea of the American Dream turning into nightmare.

COSTELLO: I've never thought of it in Shakespearean terms, but maybe I will from now on. Maybe it's because of that...

INVERNE: Michael Jackson as King Lear.

COSTELLO: Exactly. Oh, gosh.

Maybe it's because of, you know, Martin Beshir did that documentary -- he's a British guy. Did that sort of like bring added into the people of Great Britain?

INVERNE: It did. It did to an extent. I mean Brits are always interested when fellow Brits make an impact in America. So that was very much marketed as Martin Bashir having this great scoop, you know, which it was, although somewhat marred afterwards by the counter allegations made by Michael Jackson.

The thing is we're not really that aware of all the minutiae of the case here. I was listening to a report before, all the rules the jurors have to sit through. That wasn't on British new, British TV news this morning, and it's not in the newspapers. But we are, as I say, fascinated by this idea that this guy had everything and now he's destroying it. And, you know, there's also something else, which is that we live in an age of fewer and fewer real personalities in the music world. I mean we're now dominated by these talent competitions, by "American Idol," "British Idol," pop icon, you know, best person singing with a hairbrush on top of the bed, all of these sort of shows. And they've produced these plasticy sort of clones. And if you look at the charts, there's very few people as interesting now as the generation of Michael Jackson and Elton John, you know? And in those days you had personalities.

We don't know whether or not he's a criminal yet, but by god he's smooth. COSTELLO: He is, and he can actually sing. And a lot of singers now can't actually sing, which is very sad. And you have something there.

James Inverne from "Time" magazine, joining us live from London.

Thank you.

Here's what's all new in the next half hour of DAYBREAK.

Global reaction to the president's State of the Union address. What do Iraqis and the British think of George Bush's end game?

Plus, the pope's condition. Early this morning, the Vatican announced how much longer he will be in the hospital.

And a reminder, our E-mail Question of the Day -- Social Security, leave it alone or is it time for a change? Did the president change your mind last night? Send us your comments, daybreak@cnn.com. That's daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: Good morning to you.

Welcome to the second half hour of DAYBREAK.

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

Now in the news, Georgia's prime minister and a deputy in his government have died of apparent gas poisoning in Tbilisi. It's believed a gas leak in the deputy's home killed the two men.

The top investigator of the U.N.'s Oil For Food Program for Iraq says the program was tainted from top to bottom. Paul Volker issues his interim report today on the Oil For Food corruption case.

General Electric will not accept any new business in Iran. G.E. says the moratorium is due to uncertain conditions in Iran, including concerns about meeting customer commitments.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired February 3, 2005 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If whole regions of the world remain in despair and grow in hatred, they will be the recruiting grounds for terror and that terror will stalk America and other free nations for decades.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: Straight ahead on DAYBREAK, a warning from President Bush and a message for terrorists. We've got the State of the Union highlights and the day after reactions.

Plus, within the last hour, an update on the pope, hospitalized with breathing problems. We'll have a live report from Rome for you in 13 minutes.

And front page news in the U.K., the Michael Jackson child molestation case. We'll take you live to London for a look at the tabloids there.

It is Thursday, February 3.

This is 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, the prime minister of Georgia has been found dead. Gas poisoning is suspected. But an investigation has been ordered. Zurab Zhvania was a key leader in the movement that toppled Eduard Shevardnadze.

A lapse in judgment, that's what Paul Volker thinks about the U.N.'s Oil For Food Program in Iraq. Volker heads the panel investigating the program. An interim report puts part of the blame on the U.N. official who was in charge.

General Electric says it will not accept any new business in Iran. A company spokesman cites uncertain conditions. Senator Frank Lautenberg of New Jersey has criticized G.E., saying it took blood money because Iran sponsors terrorism.

And a little more than two hours ago, an Atlas 3 rocket lifted off from Cape Canaveral, Florida. It's carrying a satellite that will be used for national security.

To the forecast center -- good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: President Bush takes his message on reforming Social Security to North Dakota today. Overhauling the program was one of the highlights in his State of the Union address last night.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We must make Social Security permanently sound, not leave that task for another day. We must not jeopardize our economic strength by increasing payroll taxes. We must ensure that lower income Americans get the help they need to have dignity and peace of mind in their retirement. We must guarantee there is no change for those now retired or nearing retirement. And we must take care that any changes in the system are gradual, so younger workers have years to prepare and plan for their future.

(END VIDEO CLIP)

COSTELLO: The president also talked about a budget plan that will eliminate a number of programs, all in the interests of saving tax dollars.

(BEGIN VIDEO CLIP)

BUSH: My budget substantially reduces or eliminates more than 150 government programs that are not getting results or duplicate current efforts or do not fulfill essential priorities. The principle here is clear -- taxpayer dollars must be spent wisely or not at all.

(END VIDEO CLIP)

COSTELLO: Of course, the president also talked about Iraq and its national elections. He said the successful elections prove his policy there is working. He adds U.S. efforts there are part of a larger quest to encourage freedom around the world. The president also talked about Israeli-Palestinian relations. He's pledged to give $350 million to support political, economic and security efforts in the Palestinian territories. Now, that $350 million should make Palestinian Authority President Mahmoud Abbas very happy.

Let's get some reaction to the president's comments.

Our Guy Raz has more for us from Jerusalem -- hello, Guy.

GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.

Indeed, reaction from Palestinian officials has been positive to the news that the president will seek an additional $350 million in aid to the Palestinian National Authority. Now, that money will essentially be used to rebuild and reconstruct much of the infrastructure in the Palestinian territories that has been damaged or destroyed in the past four years of fighting.

Now, on average, the Palestinian Authority received about $75 million in U.S. aid per annum. Now, with this increase in aid, the Bush administration clearly signaling its confidence in the new Palestinian leadership, particularly in the new Palestinian president, Mahmoud Abbas. And underlining the Bush administration's stated pledge to re-engage in the Middle East peace process is this weekend's visit of Condoleezza Rice, the U.S. secretary of state.

She arrives to the region on Sunday. She'll hold bilateral talks with Israeli and Palestinian leaders separately, an effort, essentially, to bolster the momentum that now exists between both sides.

Now, shortly after Condoleezza Rice leaves the region, a landmark Mideast summit is set to take place in Egypt. That meeting will include leaders from Jordan and Egypt, of course; Israel and the Palestinian Authority President Mahmoud Abbas, the most high level meeting between Israeli and Palestinian leaders now in two years -- Carol.

COSTELLO: Guy Raz reporting live from Jerusalem this morning.

Thank you.

President Bush is also promising to fix Social Security, which he claims is heading for bankruptcy. In his State of the Union, the president said younger workers should be allowed to divert part of their Social Security taxes into stocks and bonds.

CNN's Allan Chernoff talked with one couple that put their nest egg in the stock market.

(BEGIN VIDEO TAPE)

DON KUTHE, STORE CLERK: Let me see what size it is first.

ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): Don Kuthe never thought he'd have to work at age 70, never thought he'd be helping at a hardware store to make ends meet. But that was before his stock investments collapsed five years ago.

D. KUTHE: The way the stocks were going up at that time, it was, you know, it was great. So I felt secure at that particular point, false security, unfortunately.

CHERNOFF: Kuthe, a former electrical contractor, calculates he and his wife Joan lost more than one third of their nest egg, and it wasn't much to begin with. Their savings was down to about $30,000.

(on camera): The Kuthes couldn't afford to lose money in the stock market because they had failed to save much for retirement. They depend upon Social Security and some help from their kids, one of whom bought this house for them. JOAN KUTHE: We're very reliant on Social Security. We couldn't manage without, you know, Don gets a decent Social Security.

CHERNOFF (voice-over): Given their experience, the Kuthes oppose the president's plan to let younger Americans invest some Social Security money in stocks.

D. KUTHE: It is working fine. Why do you want to fix something that's not broken? I don't understand it.

CHERNOFF: The Kuthes say they understand there's no danger to their Social Security benefits, $27,000 a year, and they've heard the system may be facing serious financial strain. Even so, for the sake of their children and grandchildren, they want to send a message to President Bush -- Social Security is no place to let people risk their money.

D. KUTHE: If he were sensitive, he wouldn't monkey around with everybody's livelihood. You know, he doesn't live in the real world.

CHERNOFF: The stability of Social Security is even more important for the Kuthes because of health problems that have come with advancing age. Don takes pills for high blood pressure and a bad back, and insulin for diabetes. Joan has had minor strokes, four operations on her right shoulder and this week one on the left.

D. KUTHE: The golden years are not for sissies. It's tough.

CHERNOFF: The golden years have been anything but for the Kuthes, which is why they warn you never know just how much you may need Social Security.

(END VIDEO TAPE)

COSTELLO: That report from Allan Chernoff of CNN Financial News.

In the Democratic response to the State of the Union, Senate Minority Leader Harry Reid called the president's Social Security proposals "dangerous and wrong." In fact, when the president was talking about them in the State of the Union, you heard boos from the audience, and that does not happen very often during these events.

That brings us to today's DAYBREAK E-Mail Question. Social Security -- leave it alone or time for a change? Did the president's speech last night make you feel any better about his proposed plans to change Social Security? We want to know what you think this morning so e-mail us at daybreak@cnn.com. That's daybreak@cnn.com.

In other news across America this morning, about 100 Marines have returned home from Iraq. They got a very warm welcome from family and friends at Miramar Air Station in California. They've been deployed since last summer. More members of the 3rd Marine Aircraft Wing will be coming home in a few weeks. Four Marines from the unit were killed in that tragic helicopter crash near Baghdad last week.

Three youngsters from Camden, New Jersey got a cool prize for their hard work. They're going to the Super Bowl. The tickets and transportation were given by an anonymous donor as the prize for a Camden Boys & Girls Club essay contest.

Now for some great pictures from Hawaii. Lava from the Kilauea volcano has carved two new paths into the ocean. The new molten rivers have drawn crowds to watch the natural show. Kilauea has been erupting continuously since 1983.

We're taking you around the world on DAYBREAK this morning.

First, is the United Kingdom united in its support of Michael Jackson? That's a big story over there. We'll get a live report from London about how the trial is playing overseas.

Also ahead, the pope has a long hospital stay ahead of him. We'll have the latest on his health live from Rome.

And the amazing stories of survival after the tsunami are not over. We'll take you back to Indonesia.

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

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: A doctor at Gemelli Hospital in Rome says Pope John Paul II is expected to remain there about a week. The doctor says laboratory tests on the 84-year-old pope have yielded satisfactory results.

CNN's Allessio Vinci has a live report now from outside of the hospital -- good morning, Alessio.

ALESSIO VINCI, CNN CORRESPONDENT: Good morning to you, Carol.

Well, first of all, let me tell you what Vatican officials are telling. Last night, one Vatican official telling reporters -- he was one of the few who actually had the chance to see the pope -- says the pope is actually recovering well, that he's responding well to the treatment that has been given to him. And Dr. Joaquin Navarro-Valls, who is actually a doctor himself but also happens to be the chief Vatican spokesman, met reporters this morning, saying that the pope had a good night of sleep and that in his experience the pope will spend at least another week or at least seven days at the hospital before being, perhaps, returning to the Vatican.

There are also some rumors which we haven't been able to confirm independently, but we understand that the Vatican is making some provisions for allowing the pope on Sunday to recite his own Angelus, the prayer that he does every Sunday, from here, from his hospital bed. This is something that he has done in the past before, so there's nothing new here. But certainly the Vatican this morning trying to put a positive spin on the situation, saying, again, of course, that the recovery, that the pope was admitted to the hospital because of precautionary measures, but also because -- and there was nothing to be alarmed with -- back to you, Carol.

COSTELLO: Alessio Vinci reporting live from Rome this morning.

Thank you.

Your news, money, weather and sports.

It's 5:15 Eastern.

Here's what's all new this morning.

President Bush is taking his case for Social Security reform on the road to four states. The first stop? North Dakota. In last night's State of the Union address he said the entire Social Security is in danger of being "exhausted and bankrupt."

The Marine Corps may need a few more good men and women. For the first time in nearly a decade, the Corps missed its monthly recruiting target in January. The Marines say the number was merely an internal goal and the number of troops is on target.

In money news, the Fed's done it again. A key interest rate has gone up another 1/4 point. It's the sixth straight increase since last June. The rate now stands at 2.5 percent.

In culture, Martha Stewart will host a spin-off version of NBC's hit "The Apprentice." The network says the format will be changed slightly to fit her style. Stewart gets out of prison on March 4, but then she'll be confined to her home for five more months.

In sports, the Los Angeles Lakers coach is stepping down as head coach, citing medical concerns and stress. He'd come out of retirement to replace Phil Jackson as the Lakers coach this season. Now, some reports say Jackson is at the top of the Lakers' wish list for a new coach.

To the forecast center and Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

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

The Super Bowl will be played on the real green stuff this weekend. But is artificial turf endangering some NFL players?

And we'll tell you what questions potential jurors faced in the Michael Jackson trial.

You are watching DAYBREAK for a Thursday.

(COMMERCIAL BREAK)

COSTELLO: Attorneys in the Michael Jackson case are taking the next few days to try to get inside the heads of potential jurors. CNN's Ted Rowlands has more on questions the jury pool had to answer before they could be considered for the final panel.

(BEGIN VIDEO TAPE) TED ROWLANDS, CNN CORRESPONDENT (voice-over): Have you or any relative or close friend ever been the victim of inappropriate sexual behavior of any kind? Have you or any relative or close friend ever been accused of inappropriate sexual behavior? These are two of the 41 questions asked of potential jurors in the Michael Jackson case. Age, sex, race and occupation are also included in the four and a half page questionnaire, along with questions about Jackson himself, sexual abuse and lawsuits.

Have you or a family member ever made any type of claim for money damages? Have you ever worked or volunteered for a child advocacy group or for a group dealing with child safety, child abuse or mistreatment or children's rights? Jurors were also asked if they themselves, or any acquaintances, had met Jackson or spent time at Neverland, where Jackson has employed hundreds of locals.

Missing from the questionnaire, anything about Michael Jackson's music.

JAYNE WEINTRAUB, DEFENSE ATTORNEY: I wanted to know did they or anybody in their family ever collect Michael Jackson albums, were they fans of his, have they ever seen him in concert, did they -- do they know what moonwalk is?

ROWLANDS: Another question involves an issue the judge in the case has yet to rule on, the past allegations of abuse against Michael Jackson. Do you know or have you read, seen or heard anything about the publicity regarding the 1993-1994 investigation against Michael Jackson?

Lawyers on both sides have until Monday to review the questionnaires, at which point they can ask each potential juror face- to-face about their answers. Eventually, the pool of about 250 will be whittled down to 12 jurors and eight alternates, who will be asked to decide Michael Jackson's fate.

Ted Rowlands, CNN, Los Angeles.

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COSTELLO: And the Michael Jackson trial is not just stealing headlines here in the United States. The kop has legions of loyal fans in the U.K.

So live to London now and "Time" magazine's James Inverne to see how Britain's press is handling this story.

And, you know, James, many Americans are tired of hearing about it here in the United States.

Are people really that interested over there? JAMES INVERNE, "TIME" MAGAZINE: Yes and no. I mean it's not the phenomenon that it was the last time around. On the other hand, you know, there's this whole myth about Michael Jackson, well, in fact, it's not a myth, it's part of the American Dream, you know, which, in many cases, is very true, and was in his case. You know, he built himself up with the aid, albeit, of a domineering father, and became this great pop legend and seemed to have everything that all of us want, I mean those of us, you know, that used to dance in our beds with our hairbrush in our hands singing Beatles hits. Of course, I never did anything like that.

But then it's all gone sort of spectacularly wrong, you know, both physically, because he seems to have become this, you know, grotesque monster, although we know he has reasons for that, so he says; and, of course, with these awful charges brought against him.

So there's this fascination. It's almost taking on the aspects of a great Shakespearean drama. And, in fact, you know, it may be no coincidence that many of the great works of American culture by, you know, the plays of Tennessee Williams and Arthur Miller are all about this idea of the American Dream turning into nightmare.

COSTELLO: I've never thought of it in Shakespearean terms, but maybe I will from now on. Maybe it's because of that...

INVERNE: Michael Jackson as King Lear.

COSTELLO: Exactly. Oh, gosh.

Maybe it's because of, you know, Martin Beshir did that documentary -- he's a British guy. Did that sort of like bring added into the people of Great Britain?

INVERNE: It did. It did to an extent. I mean Brits are always interested when fellow Brits make an impact in America. So that was very much marketed as Martin Bashir having this great scoop, you know, which it was, although somewhat marred afterwards by the counter allegations made by Michael Jackson.

The thing is we're not really that aware of all the minutiae of the case here. I was listening to a report before, all the rules the jurors have to sit through. That wasn't on British new, British TV news this morning, and it's not in the newspapers. But we are, as I say, fascinated by this idea that this guy had everything and now he's destroying it. And, you know, there's also something else, which is that we live in an age of fewer and fewer real personalities in the music world. I mean we're now dominated by these talent competitions, by "American Idol," "British Idol," pop icon, you know, best person singing with a hairbrush on top of the bed, all of these sort of shows. And they've produced these plasticy sort of clones. And if you look at the charts, there's very few people as interesting now as the generation of Michael Jackson and Elton John, you know? And in those days you had personalities.

We don't know whether or not he's a criminal yet, but by god he's smooth. COSTELLO: He is, and he can actually sing. And a lot of singers now can't actually sing, which is very sad. And you have something there.

James Inverne from "Time" magazine, joining us live from London.

Thank you.

Here's what's all new in the next half hour of DAYBREAK.

Global reaction to the president's State of the Union address. What do Iraqis and the British think of George Bush's end game?

Plus, the pope's condition. Early this morning, the Vatican announced how much longer he will be in the hospital.

And a reminder, our E-mail Question of the Day -- Social Security, leave it alone or is it time for a change? Did the president change your mind last night? Send us your comments, daybreak@cnn.com. That's daybreak@cnn.com.

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COSTELLO: Good morning to you.

Welcome to the second half hour of DAYBREAK.

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

Now in the news, Georgia's prime minister and a deputy in his government have died of apparent gas poisoning in Tbilisi. It's believed a gas leak in the deputy's home killed the two men.

The top investigator of the U.N.'s Oil For Food Program for Iraq says the program was tainted from top to bottom. Paul Volker issues his interim report today on the Oil For Food corruption case.

General Electric will not accept any new business in Iran. G.E. says the moratorium is due to uncertain conditions in Iran, including concerns about meeting customer commitments.

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