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American Morning

North Korea Withdraws from Nuclear Talks; Dean Likely to Head Democratic Party; Fast Food Restaurants Offering Fruit Dishes; Ethiopian Model Changing Face of Fashion

Aired February 10, 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.


BILL HEMMER, CO-HOST: There's your opening bell on Wall Street, now off and running. Stocks are here in New York City; 10664 is the opening mark. Down day yesterday, fell about 60 points. News from Cisco a bit mixed.
And NASDAQ market sites starting the day today at 2052, off about 34 points in trading on Wednesday. Andy tells us look out for Dell Computers later today. They are set to report. So we'll see how they do.

Good morning, 9:30. Good morning to you.

SOLEDAD O'BRIEN, CO-HOST: And good morning to you.

HEMMER: Straight ahead here, North Korea surprising world leaders again today, saying it will no longer have anything to do with these talks on nuclear disarmament. Pyongyang got in a pretty blunt parting shot, too, as well. We'll get a report on that and the country's latest claims in a moment. We'll get to Asia for that.

O'BRIEN: Also, Howard Dean. Looks like a shoo-in to take over as chairman of the Democratic Party. He brings fund-raising skills and maybe some problems, as well. We're going to chat with Jeff Greenfield about all that ahead.

HEMMER: A very interesting tenure, to say the least.

Good morning, Carol.

CAROL COSTELLO, ANCHOR: Good morning to you. Good morning to all of you.

Now in the news, President Bush is taking his Social Security pitch on the road. The president set to leave Andrews Air Force Base -- actually he's going to do that. You can see the live pictures right there for yourself.

He's leaving for a town hall meeting in Raleigh, North Carolina, and then he's scheduled to speak at a community college outside of Philadelphia. The president is pushing his plan to allow younger workers to invest a portion of their Social Security taxes into private accounts.

Pope John Paul II heading back to the Vatican today after spending more than a week at a hospital in Rome. The Vatican issuing a statement this morning saying the pope was cured of his breathing problems. A Vatican spokesman says the 84-year-old pontiff plans to send a letter of thanks to those who cared for him at the hospital.

And today, U.N. Secretary-General Kofi Annan is laying out his agenda for the United Nations. Speaking in London less than two hours ago the secretary-general said the transition to democracy in Iraq and the Middle East peace process remain top priorities. He's also pushing for expansion of the Security Council. British Prime Minister Tony Blair called Annan a unifier for the international community.

And there is word this morning the Boston Red Sox are aiming for more expansions at Fenway Park. The goal is to renovate the so-called 406 Club behind home plate. The team wants to add more seating and standing room. Execs are also considering changing the name. The 406 Club name honors Ted Williams' batting average in 1941. Kind of makes you quake when you think what they want to change the name to. Like American Express?

O'BRIEN: Yes, the seating area. I think that's a pretty good guess, something along that vein.

HEMMER: You could call them once every 86 years.

O'BRIEN: You are the king of trivia, isn't he?

HEMMER: Let's get -- yes, thanks.

Let's get to North Korea right now, a story we've been watching throughout the morning here. Upping the stakes today in the game of nuclear brinkmanship. Atika Shubert is watching this story now from Tokyo.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: (speaking foreign language)

ATIKA SHUBERT, CNN CORRESPONDENT: In a brief statement, North Korea says it will no longer take part in the six-party talks, dashing hopes that a halt in its nuclear weapons program can be negotiated soon.

The Korean Central News agency quoted an official from North Korea's foreign ministry as saying, quote, "We are compelled to suspend our participation in the talks for an indefinite period until we have recognized that there is justification for us to attend the talks," end quote.

The statement went on to say that North Korea had manufactured nuclear weapons for self-defense and that they were needed, quote, "to cope with the Bush administration's evermore undisguised policy to isolate and stifle the DPRK, or the Democratic People's Republic of Korea," end quote.

On her tour of Europe, U.S. Secretary of State Condoleezza Rice was quick to respond, saying the announcement would only deepen North Korea's isolation. CONDOLEEZZA RICE, SECRETARY OF STATE: This is an unfortunate move, most especially probably for the people of North Korea, because it only deepens the North Korean isolation from the rest of the international community. It's very clear that all responsible members of the international community, and most especially North Korea's neighbors, support the six-party framework as a way to resolve the North Korean nuclear issue.

SHUBERT (on camera): The substance of North Korea's comments come as little surprise, but the timing does. The Bush administration has made little mention of North Korea in recent days. Most of the attention has been on Iran. So what does North Korea hope to gain by focusing attention back on its nuclear weapons program and withdrawing further into isolation?

Atika Shubert, CNN, Tokyo.

(END VIDEOTAPE)

HEMMER: To date, North Korea's flip-flopped on the six-nation talks at least a half dozen times in the past six months. Be sure to stay with CNN day and night for the most reliable news about your security -- Soledad.

O'BRIEN: Bill, thanks.

Former presidential candidate Howard Dean is expected to become the next chairman of the Democratic National Committee. Now that his last remaining opponent, Tim Roemer, has bowed out of the race.

Dean has shown a strong ability to raise money, but is he the guy to lead the party? Joining us this morning, CNN's senior analyst, Jeff Greenfield.

So how did this happen? I mean, it's fair to say that his campaign crashed and burned. I don't think that's an overstatement. I don't think that's particularly cruel. How is he the last guy standing in this?

JEFF GREENFIELD, CNN POLITICAL ANALYST: Well, the first thing is he worked very hard in it, you know. He -- there's a lot of affection for Dean among the rank and file, among grassroots activists.

And moreover, Dean offered state party people everything from a bigger voice in decision making to a lot more money. Money doesn't ever hurt.

But I think the success also reveals some pretty deep divisions within Democratic Party. And they've been apparent, really, for decades. The candidates are looking for a more centrist Democratic Party. They just didn't find a receptive audience.

Governor Tim Roemer, who was basically pro life, ex-congressman Marty Frost, who lost his Texas seat because of that Tom DeLay redistricting, who was saying we've got to appeal more to the middle. That isn't what the activists wanted to hear. And Dean has a much more let's get organized; let's rally our base; let's be true to our colors. And that's what -- that's what helped sell him.

O'BRIEN: OK. Well, then let's talk about up sides and down sides, sort of hope versus fear of Howard Dean.

GREENFIELD: Well, the hope for the Democrats is -- is represented in some of the Dean campaign. As you mentioned, I think he raised a ton of money, some $50 million before the primaries began. He had a whole lot of supporters and organizers on his web site.

And the party -- the party activists who have long resented insiders, they see Dean as their guy. Just a step to reforming the party. His critics, though, also point to the same campaign, the one that you referred to as crashed and burned, quite rightly, I think. It was broke by the time the primaries began. It was played by this organization.

And Dean's own comments and positions, obviously, most famously that post-Iowa scream, but plenty of others, for his critics, say that he has a tin ear when it comes to communicating with voters who aren't already drawn to him and to the Democratic Party. His critics say he's exactly the wrong guy to solve the party's problem. Too many people, they say, see the party as elitist, too secular, too out of touch with the middle.

When have you a Rush Limbaugh saying sarcastically to the Democrats please pick Howard Dean, he's no friend of the Democratic Party, you can see where the fear is coming from.

O'BRIEN: I have never heard debate over who's going to be the chairperson of the DNC talked about for so long and so heatedly before.

GREENFIELD: Yes. Well, welcome to 24-hour news. This is...

O'BRIEN: But that's not the only reason why, is it?

GREENFIELD: Well, it's a substantial reason. The other reason is you've got a lot of political journalists who have nothing to cover. They can't really start talking about the Iowa caucuses three years away. So it's a race.

I think part of it's due to the unusual nature of the new chair. I mean, there are cases where party chairs have then run for president: the first George Bush. I can't recall -- I'm sure I'll be corrected by somebody out there -- where a visible presidential candidate then became chair of his party or some day her party.

I think fundamentally, though, you're right. The party chair is somebody who raises money, makes the party work, you know, logistically. It's not traditionally the message voice of the party. And I really don't think we're going to look back in a few years and say this was the key moment in the party's history.

The Democrats have a much better problem. They know what they stand for. And they -- can they convince the country that what they stand for are a series of good ideas that will make people vote for them, because their base has been drifting away from them steadily over a period of, I really think it's closer to 30 years.

O'BRIEN: Is Howard Dean the guy for that message?

GREENFIELD: Well, I don't think -- but that goes back to, there's no party chair that's going to suddenly say, "Oh, OK, that's fixed." This is a more fundamental problem. It's an unfashionable notion, but ideas in politics have huge consequences. And I think my feeling is that's where the party's dilemma is, not who's the chairman or woman or thing. Or entity.

O'BRIEN: I just hope it's a man or a woman, either one of those. Jeff Greenfield...

GREENFIELD: In some parts of this country, I don't know.

O'BRIEN: OK. Jeff, as always, thank you. Appreciate it.

GREENFIELD: OK.

O'BRIEN: Bill.

HEMMER: All right, Soledad.

Another check of the weather. Here's Chad watching things down in Atlanta at the CNN Center.

Good morning.

(WEATHER REPORT)

O'BRIEN: All right, Chad, thanks.

So you say you like to sing karaoke in front of a big old group of strangers. How about this? Try doing it naked. That is the challenge at one Connecticut bar, which is advertising naked karaoke night. The bar's owner says the idea actually began as a joke, but then he was threatened with fines, even threatened with arrest. So he sued the town. And he won.

He says 120 people have already signed up for naked karaoke night.

HEMMER: A hundred and twenty?

O'BRIEN: To perform or to watch?

HEMMER: Assuming they show up. Video to follow.

These are salad days for the fast food industry. And two of the major chains are expanding their healthy menu by offering fruit as a meal. Dr. Sanjay Gupta now with more on the fast food idea.

Good morning. You like it?

SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, yes. And it's hard to -- hard to follow naked karaoke. HEMMER: I'm sure. You want to try it?

GUPTA: Let me give it a try.

HEMMER: We don't want to watch.

GUPTA: Yes. Yes, I mean, things are changing when it comes to the fast food industry. We talk about that a lot, what are the various options that are being offered. Well, Wendy's is rolling out a fresh fruit entree, a fruit bowl, as well. And about 80 percent of its restaurants, now.

McDonald's is actually going to try a fruit and walnut salad. These are things you're going to see in fast food restaurants. Yes.

Also Chick-Fil-A has a fruit cup. There's apple dippers.

Interesting fact. The largest purchaser of apples in this nation, McDonald's, because they now substitute -- they offer to substitute apples instead of French fries in some of their meals. Really interesting there.

Of course, there are some caveats with those salads. If you load them up with croutons and salad dressing and fried chicken, you may as well be eating a hamburger. So the question is, is the fruit going to be a better option? And that's what a lot of people are talking about today.

Specifically, some of the options out there, take a look. Wendy's 8.9 ounce fruit entree. You can see the calories there. If you add the yogurt dip you do increase the calories to 220. Only one gram of fat. The McDonald's -- that costs $4.19 by the way. So a little bit expensive. Not bad.

McDonald's fruit yogurt parfait, 160, 2 grams of fat. The Chick- Fil-A fruit cup, 4 ounces of calories. I'm sorry. Four ounces, 60 calories and 0 grams of fat. Compare that, by the way, to four ounces of French fries. You'll see 350 calories, 16 grams of fat.

In fact, Bill, if you actually eat -- I've brought some of these foods here. If you actually eat the fruit entree along with the parfait and the apple dippers over there, all that together still isn't as many calories and grams of fat as a large order of fries. So it could fill you up and taste good as well.

HEMMER: I like the idea. I think it reflects the business demands and diet demands with all the diets that we have followed over the past five years.

GUPTA: Yes.

HEMMER: Do you think many people are going to go for this option?

GUPTA: You know, it's interesting. You know, they had a McLean burger for a while at McDonald's. You may remember that. It actually did well in taste tests prior to market. When people actually saw it on the menu, they didn't order it as well. And it slowly disappeared.

We actually went to the streets to find out how people are reacting to the fruit. Here's what they said.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It's healthy and it's fast and it's fresh.

UNIDENTIFIED FEMALE: In the days when I was growing up, or even when we were raising our children, it wasn't -- I mean, you just drove through and picked up the French fries and drove on. Now that we have grandchildren, it's exciting to know that from the get-go they're possibly able to lead a little healthier life.

UNIDENTIFIED FEMALE: I think I'd go for the fruit because it's probably more colorful. And you know, you always have that in mind that fries are, like, greasy. So I think you would go for the fruit.

UNIDENTIFIED MALE: I feel like eating healthy is the way to go even though I love French fries.

(END VIDEOTAPE)

GUPTA: So you can see there a new generation, a new generation of buyers. It hasn't worked well in the past, as you point out. But I think this time around with the fruit, the healthier salads, these options are going to be good. They taste good, as they say. They fill you up, and they're not as expensive as people thought they might be -- Bill.

HEMMER: And they feel better, too. OK. Thank you, Sanjay, see you tomorrow.

GUPTA: All right.

HEMMER: Soledad.

O'BRIEN: My kids?

HEMMER: Yes.

O'BRIEN: I better swap out the apple for the French fries at McDonald's. That might work. And they even know. They want the fries.

Coming up this morning, corporations pay millions of dollars to get their names on stadiums. But now you can do the same for just a few hundred bucks. Andy will explain when he "Minds Your Business" just ahead.

HEMMER: Also, breaking down barriers. An inside look at an industry that is still far from color blind. That's up in a moment, too, on AMERICAN MORNING.

(COMMERCIAL BREAK) O'BRIEN: It's Fashion Week in New York with hundreds of models showing off the latest clothing trends. But some say modeling continues to lack diversity. Minorities struggling to find a place in high fashion.

CNN's Jason Carroll has more on a model whose success is starting to test that boundary.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT: She's fashion's model of the moment: Ethiopian born Liya Kebede, known for her beauty and for breaking barriers.

IVAN BART, IMG MODELS: Liya's Estee Lauder contract was probably, you know, the shot heard around the world.

CARROLL: Liya is the first black woman to land a coveted cosmetics contract with Estee Lauder, a first in that company's 59- year-old history.

LIYA KEBEDE, MODEL: To be part of that, it's really, really -- I don't think I can ask for anything more.

CARROLL: Liya's break came when Tom Ford, former designer for Gucci, exclusively chose her for the runway when she was still a struggling model in Chicago.

KEBEDE: It was tough. I mean, I got luck we the whole Tom Ford thing.

CARROLL: Liya's success is the exception. While models like Sujawala (ph) from India...

UNIDENTIFIED FEMALE: It's always been a sweet struggle.

CARROLL: ... Sudan's Alek Wek, or Japan's Ai Tominaga are redefining beauty standards, progress for most models of color is still slow.

SEAN PATTERSON, WILHELMINA MODELS: It can be a tough sell. And that can be heartbreaking sometimes. Because you know, you have some really unbelievably gifted people, beautiful people who aren't given the opportunity to break through.

CARROLL: The models complain.

CAROLINE RIBEIRO, MODEL: That's the way it is. And it's never going to change, ever.

CARROLL: So do some designers.

MATTHEW WILLIAMSON, DESIGNER: There's resistance. I don't know what it is. I think it's probably getting less and less so.

CARROLL: Few can pinpoint who's at fault. KEBEDE: I don't know if there's a business reason for it or not.

CARROLL: The omissions are evident. Take fashion giant Prada. We looked at runway shows going back several years. Last year, no women of color. 2003, none. 2002, zero. Prada has not put a woman of color on its runway in at least six years.

Prada's spokeswoman has not returned our calls.

MICHAELA ANGELA DAVIS, FASHION BEAUTY MANAGER, "ESSENCE": It's kind of safe (ph). There's one Naomi. There's one Alek Wek. There's one Liya. You know? But when you've got all of them on a runway, it creates a shift. And it's about -- I think people aren't quite comfortable with what that shift is.

CARROLL (on camera): What is it going to take to change? I mean, you know this industry.

UNIDENTIFIED FEMALE: Activism. Activism. It really is.

CARROLL: Until then, Liya will keep pushing.

KEBEDE: We have to keep going. You have to just persevere in it.

CARROLL: And striving to be the face of change.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

O'BRIEN: Fashion Week ends tomorrow with collections from Ralph Lauren and also J. Lo -- Bill.

HEMMER: For just a few hundred bucks, the naming rights for a glitzy sports arena can be all yours. Andy's "Minding Your Business."

Back in a moment here. Live in Manhattan here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. There is a new way to get your name in lights. And with that and a check of the markets, back to Andy Serwer, "Minding Your Business."

Twenty-three minutes old.

ANDY SERWER, "FORTUNE" MAGAZINE: That's right.

HEMMER: How are we doing?

SERWER: We're doing OK this morning. Stocks rebounding after yesterday's losses. Let's go to the big board and see what's happening right about now. Twenty-nine points to the up side. Dell reports after the bell. Interesting news from Sara Lee. They're going to be selling their apparel business, which includes Hane's, Playtex and the Wonderbra. Also -- this is really interesting -- a new CEO, a woman, Brenda Barnes.

So as of yesterday morning, we had eight women who were CEOs of Fortune 500 companies. Then we were down to seven with Carly Fiorina leaving. Now we're back to eight. Interesting stuff.

HEMMER: Moving fast.

SERWER: Yes, indeed. The Fleet Center at Boston is auctioning off naming rights to that facility, one day at a time, on eBay. And you can simply buy the name and put your name up there. And here's what's happening.

O'BRIEN: For a day?

SERWER: For a day, yes, because it would get expensive do it more than that. But they're letting everyone or anyone do it, a business, an individual. One guy did it for $500.

What happened is Bank of America bought Fleet last year. They don't want to continue the whole deal. This is where the Celtics play and where the Bruins used to play.

And you can just go right on there. One guy got it for $500. It's around $2,000 right now. You can just put your name up there. You don't get it on the outside. You get it on the inside. The answering machine says -- here are some names, the Serwer Center, The Jack -- The Jack, like the Jake.

HEMMER: The Jack!

SERWER: The House of Hemmer and, of course, the Sole-Dome. The Sole-Dome in Boston.

O'BRIEN: I'd cough up two grand for that.

SERWER: The Sole-Dome.

HEMMER: The Cafferty Coliseum?

SERWER: No, The Jack.

HEMMER: For a day?

SERWER: The Jack.

CAFFERTY: Do they make those other things that you get in the drugstores, that company, Fleet?

SERWER: No. They don't. That's out at Yankee Stadium.

O'BRIEN: I don't even want to know where that came from. Let's talk about the question of the day, shall we? CAFFERTY: Should Camilla Parker Bowles be the next queen of England is the way the issue...?

O'BRIEN: I'm sorry. Did I kick you?

CAFFERTY: Yes, you did.

HEMMER: That was for...

CAFFERTY: The weighty issue that we're dealing with on this program, which mercifully is about over.

John: "Does it really matter? They're all just figureheads anyway. It's not as if alliances and the fates of nations depend on it anymore." You're right, John.

Tina in New York, "No, it's scandalous. Make no mistake, Camilla chose Diana because she thought she was stupid and would let her have her husband and the goodies he would bring her as mistress. I hope for both of them, they're receiving the same kindness in life that they both gave Diana."

And Greg in Westville, Nova Scotia, "Jolly good morning, Jack. What difference would it make? She only has to publicly announce a charity of her choice and learn to wave from the rear seat of a Bentley. And Jack, please don't go if you get a call to knighthood. The sword works as well horizontally as it does vertically."

HEMMER: Sir Jack. Like it.

Put this topic to rest.

SERWER: This is the wave, right? This is the wave? The royal wave?

CAFFERTY: I've never been in the back seat of a Bentley. Have you, Soledad? No.

HEMMER: Kick him again. Kick him again.

O'BRIEN: I had a girlfriend who had a Bentley once. And yes, I rode in a Bentley.

CAFFERTY: Now you know the rest of the story.

SERWER: All the news you need to know.

HEMMER: Let's get a break here. We're expecting to hear about the pope being released from the hospital later this morning. There are still many questions, though, about his future. They have that next hour with Rick and Betty on "CNN LIVE TODAY."

We're back in a moment here on AMERICAN MORNING, right after this.

(COMMERCIAL BREAK) 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 10, 2005 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CO-HOST: There's your opening bell on Wall Street, now off and running. Stocks are here in New York City; 10664 is the opening mark. Down day yesterday, fell about 60 points. News from Cisco a bit mixed.
And NASDAQ market sites starting the day today at 2052, off about 34 points in trading on Wednesday. Andy tells us look out for Dell Computers later today. They are set to report. So we'll see how they do.

Good morning, 9:30. Good morning to you.

SOLEDAD O'BRIEN, CO-HOST: And good morning to you.

HEMMER: Straight ahead here, North Korea surprising world leaders again today, saying it will no longer have anything to do with these talks on nuclear disarmament. Pyongyang got in a pretty blunt parting shot, too, as well. We'll get a report on that and the country's latest claims in a moment. We'll get to Asia for that.

O'BRIEN: Also, Howard Dean. Looks like a shoo-in to take over as chairman of the Democratic Party. He brings fund-raising skills and maybe some problems, as well. We're going to chat with Jeff Greenfield about all that ahead.

HEMMER: A very interesting tenure, to say the least.

Good morning, Carol.

CAROL COSTELLO, ANCHOR: Good morning to you. Good morning to all of you.

Now in the news, President Bush is taking his Social Security pitch on the road. The president set to leave Andrews Air Force Base -- actually he's going to do that. You can see the live pictures right there for yourself.

He's leaving for a town hall meeting in Raleigh, North Carolina, and then he's scheduled to speak at a community college outside of Philadelphia. The president is pushing his plan to allow younger workers to invest a portion of their Social Security taxes into private accounts.

Pope John Paul II heading back to the Vatican today after spending more than a week at a hospital in Rome. The Vatican issuing a statement this morning saying the pope was cured of his breathing problems. A Vatican spokesman says the 84-year-old pontiff plans to send a letter of thanks to those who cared for him at the hospital.

And today, U.N. Secretary-General Kofi Annan is laying out his agenda for the United Nations. Speaking in London less than two hours ago the secretary-general said the transition to democracy in Iraq and the Middle East peace process remain top priorities. He's also pushing for expansion of the Security Council. British Prime Minister Tony Blair called Annan a unifier for the international community.

And there is word this morning the Boston Red Sox are aiming for more expansions at Fenway Park. The goal is to renovate the so-called 406 Club behind home plate. The team wants to add more seating and standing room. Execs are also considering changing the name. The 406 Club name honors Ted Williams' batting average in 1941. Kind of makes you quake when you think what they want to change the name to. Like American Express?

O'BRIEN: Yes, the seating area. I think that's a pretty good guess, something along that vein.

HEMMER: You could call them once every 86 years.

O'BRIEN: You are the king of trivia, isn't he?

HEMMER: Let's get -- yes, thanks.

Let's get to North Korea right now, a story we've been watching throughout the morning here. Upping the stakes today in the game of nuclear brinkmanship. Atika Shubert is watching this story now from Tokyo.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: (speaking foreign language)

ATIKA SHUBERT, CNN CORRESPONDENT: In a brief statement, North Korea says it will no longer take part in the six-party talks, dashing hopes that a halt in its nuclear weapons program can be negotiated soon.

The Korean Central News agency quoted an official from North Korea's foreign ministry as saying, quote, "We are compelled to suspend our participation in the talks for an indefinite period until we have recognized that there is justification for us to attend the talks," end quote.

The statement went on to say that North Korea had manufactured nuclear weapons for self-defense and that they were needed, quote, "to cope with the Bush administration's evermore undisguised policy to isolate and stifle the DPRK, or the Democratic People's Republic of Korea," end quote.

On her tour of Europe, U.S. Secretary of State Condoleezza Rice was quick to respond, saying the announcement would only deepen North Korea's isolation. CONDOLEEZZA RICE, SECRETARY OF STATE: This is an unfortunate move, most especially probably for the people of North Korea, because it only deepens the North Korean isolation from the rest of the international community. It's very clear that all responsible members of the international community, and most especially North Korea's neighbors, support the six-party framework as a way to resolve the North Korean nuclear issue.

SHUBERT (on camera): The substance of North Korea's comments come as little surprise, but the timing does. The Bush administration has made little mention of North Korea in recent days. Most of the attention has been on Iran. So what does North Korea hope to gain by focusing attention back on its nuclear weapons program and withdrawing further into isolation?

Atika Shubert, CNN, Tokyo.

(END VIDEOTAPE)

HEMMER: To date, North Korea's flip-flopped on the six-nation talks at least a half dozen times in the past six months. Be sure to stay with CNN day and night for the most reliable news about your security -- Soledad.

O'BRIEN: Bill, thanks.

Former presidential candidate Howard Dean is expected to become the next chairman of the Democratic National Committee. Now that his last remaining opponent, Tim Roemer, has bowed out of the race.

Dean has shown a strong ability to raise money, but is he the guy to lead the party? Joining us this morning, CNN's senior analyst, Jeff Greenfield.

So how did this happen? I mean, it's fair to say that his campaign crashed and burned. I don't think that's an overstatement. I don't think that's particularly cruel. How is he the last guy standing in this?

JEFF GREENFIELD, CNN POLITICAL ANALYST: Well, the first thing is he worked very hard in it, you know. He -- there's a lot of affection for Dean among the rank and file, among grassroots activists.

And moreover, Dean offered state party people everything from a bigger voice in decision making to a lot more money. Money doesn't ever hurt.

But I think the success also reveals some pretty deep divisions within Democratic Party. And they've been apparent, really, for decades. The candidates are looking for a more centrist Democratic Party. They just didn't find a receptive audience.

Governor Tim Roemer, who was basically pro life, ex-congressman Marty Frost, who lost his Texas seat because of that Tom DeLay redistricting, who was saying we've got to appeal more to the middle. That isn't what the activists wanted to hear. And Dean has a much more let's get organized; let's rally our base; let's be true to our colors. And that's what -- that's what helped sell him.

O'BRIEN: OK. Well, then let's talk about up sides and down sides, sort of hope versus fear of Howard Dean.

GREENFIELD: Well, the hope for the Democrats is -- is represented in some of the Dean campaign. As you mentioned, I think he raised a ton of money, some $50 million before the primaries began. He had a whole lot of supporters and organizers on his web site.

And the party -- the party activists who have long resented insiders, they see Dean as their guy. Just a step to reforming the party. His critics, though, also point to the same campaign, the one that you referred to as crashed and burned, quite rightly, I think. It was broke by the time the primaries began. It was played by this organization.

And Dean's own comments and positions, obviously, most famously that post-Iowa scream, but plenty of others, for his critics, say that he has a tin ear when it comes to communicating with voters who aren't already drawn to him and to the Democratic Party. His critics say he's exactly the wrong guy to solve the party's problem. Too many people, they say, see the party as elitist, too secular, too out of touch with the middle.

When have you a Rush Limbaugh saying sarcastically to the Democrats please pick Howard Dean, he's no friend of the Democratic Party, you can see where the fear is coming from.

O'BRIEN: I have never heard debate over who's going to be the chairperson of the DNC talked about for so long and so heatedly before.

GREENFIELD: Yes. Well, welcome to 24-hour news. This is...

O'BRIEN: But that's not the only reason why, is it?

GREENFIELD: Well, it's a substantial reason. The other reason is you've got a lot of political journalists who have nothing to cover. They can't really start talking about the Iowa caucuses three years away. So it's a race.

I think part of it's due to the unusual nature of the new chair. I mean, there are cases where party chairs have then run for president: the first George Bush. I can't recall -- I'm sure I'll be corrected by somebody out there -- where a visible presidential candidate then became chair of his party or some day her party.

I think fundamentally, though, you're right. The party chair is somebody who raises money, makes the party work, you know, logistically. It's not traditionally the message voice of the party. And I really don't think we're going to look back in a few years and say this was the key moment in the party's history.

The Democrats have a much better problem. They know what they stand for. And they -- can they convince the country that what they stand for are a series of good ideas that will make people vote for them, because their base has been drifting away from them steadily over a period of, I really think it's closer to 30 years.

O'BRIEN: Is Howard Dean the guy for that message?

GREENFIELD: Well, I don't think -- but that goes back to, there's no party chair that's going to suddenly say, "Oh, OK, that's fixed." This is a more fundamental problem. It's an unfashionable notion, but ideas in politics have huge consequences. And I think my feeling is that's where the party's dilemma is, not who's the chairman or woman or thing. Or entity.

O'BRIEN: I just hope it's a man or a woman, either one of those. Jeff Greenfield...

GREENFIELD: In some parts of this country, I don't know.

O'BRIEN: OK. Jeff, as always, thank you. Appreciate it.

GREENFIELD: OK.

O'BRIEN: Bill.

HEMMER: All right, Soledad.

Another check of the weather. Here's Chad watching things down in Atlanta at the CNN Center.

Good morning.

(WEATHER REPORT)

O'BRIEN: All right, Chad, thanks.

So you say you like to sing karaoke in front of a big old group of strangers. How about this? Try doing it naked. That is the challenge at one Connecticut bar, which is advertising naked karaoke night. The bar's owner says the idea actually began as a joke, but then he was threatened with fines, even threatened with arrest. So he sued the town. And he won.

He says 120 people have already signed up for naked karaoke night.

HEMMER: A hundred and twenty?

O'BRIEN: To perform or to watch?

HEMMER: Assuming they show up. Video to follow.

These are salad days for the fast food industry. And two of the major chains are expanding their healthy menu by offering fruit as a meal. Dr. Sanjay Gupta now with more on the fast food idea.

Good morning. You like it?

SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, yes. And it's hard to -- hard to follow naked karaoke. HEMMER: I'm sure. You want to try it?

GUPTA: Let me give it a try.

HEMMER: We don't want to watch.

GUPTA: Yes. Yes, I mean, things are changing when it comes to the fast food industry. We talk about that a lot, what are the various options that are being offered. Well, Wendy's is rolling out a fresh fruit entree, a fruit bowl, as well. And about 80 percent of its restaurants, now.

McDonald's is actually going to try a fruit and walnut salad. These are things you're going to see in fast food restaurants. Yes.

Also Chick-Fil-A has a fruit cup. There's apple dippers.

Interesting fact. The largest purchaser of apples in this nation, McDonald's, because they now substitute -- they offer to substitute apples instead of French fries in some of their meals. Really interesting there.

Of course, there are some caveats with those salads. If you load them up with croutons and salad dressing and fried chicken, you may as well be eating a hamburger. So the question is, is the fruit going to be a better option? And that's what a lot of people are talking about today.

Specifically, some of the options out there, take a look. Wendy's 8.9 ounce fruit entree. You can see the calories there. If you add the yogurt dip you do increase the calories to 220. Only one gram of fat. The McDonald's -- that costs $4.19 by the way. So a little bit expensive. Not bad.

McDonald's fruit yogurt parfait, 160, 2 grams of fat. The Chick- Fil-A fruit cup, 4 ounces of calories. I'm sorry. Four ounces, 60 calories and 0 grams of fat. Compare that, by the way, to four ounces of French fries. You'll see 350 calories, 16 grams of fat.

In fact, Bill, if you actually eat -- I've brought some of these foods here. If you actually eat the fruit entree along with the parfait and the apple dippers over there, all that together still isn't as many calories and grams of fat as a large order of fries. So it could fill you up and taste good as well.

HEMMER: I like the idea. I think it reflects the business demands and diet demands with all the diets that we have followed over the past five years.

GUPTA: Yes.

HEMMER: Do you think many people are going to go for this option?

GUPTA: You know, it's interesting. You know, they had a McLean burger for a while at McDonald's. You may remember that. It actually did well in taste tests prior to market. When people actually saw it on the menu, they didn't order it as well. And it slowly disappeared.

We actually went to the streets to find out how people are reacting to the fruit. Here's what they said.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It's healthy and it's fast and it's fresh.

UNIDENTIFIED FEMALE: In the days when I was growing up, or even when we were raising our children, it wasn't -- I mean, you just drove through and picked up the French fries and drove on. Now that we have grandchildren, it's exciting to know that from the get-go they're possibly able to lead a little healthier life.

UNIDENTIFIED FEMALE: I think I'd go for the fruit because it's probably more colorful. And you know, you always have that in mind that fries are, like, greasy. So I think you would go for the fruit.

UNIDENTIFIED MALE: I feel like eating healthy is the way to go even though I love French fries.

(END VIDEOTAPE)

GUPTA: So you can see there a new generation, a new generation of buyers. It hasn't worked well in the past, as you point out. But I think this time around with the fruit, the healthier salads, these options are going to be good. They taste good, as they say. They fill you up, and they're not as expensive as people thought they might be -- Bill.

HEMMER: And they feel better, too. OK. Thank you, Sanjay, see you tomorrow.

GUPTA: All right.

HEMMER: Soledad.

O'BRIEN: My kids?

HEMMER: Yes.

O'BRIEN: I better swap out the apple for the French fries at McDonald's. That might work. And they even know. They want the fries.

Coming up this morning, corporations pay millions of dollars to get their names on stadiums. But now you can do the same for just a few hundred bucks. Andy will explain when he "Minds Your Business" just ahead.

HEMMER: Also, breaking down barriers. An inside look at an industry that is still far from color blind. That's up in a moment, too, on AMERICAN MORNING.

(COMMERCIAL BREAK) O'BRIEN: It's Fashion Week in New York with hundreds of models showing off the latest clothing trends. But some say modeling continues to lack diversity. Minorities struggling to find a place in high fashion.

CNN's Jason Carroll has more on a model whose success is starting to test that boundary.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT: She's fashion's model of the moment: Ethiopian born Liya Kebede, known for her beauty and for breaking barriers.

IVAN BART, IMG MODELS: Liya's Estee Lauder contract was probably, you know, the shot heard around the world.

CARROLL: Liya is the first black woman to land a coveted cosmetics contract with Estee Lauder, a first in that company's 59- year-old history.

LIYA KEBEDE, MODEL: To be part of that, it's really, really -- I don't think I can ask for anything more.

CARROLL: Liya's break came when Tom Ford, former designer for Gucci, exclusively chose her for the runway when she was still a struggling model in Chicago.

KEBEDE: It was tough. I mean, I got luck we the whole Tom Ford thing.

CARROLL: Liya's success is the exception. While models like Sujawala (ph) from India...

UNIDENTIFIED FEMALE: It's always been a sweet struggle.

CARROLL: ... Sudan's Alek Wek, or Japan's Ai Tominaga are redefining beauty standards, progress for most models of color is still slow.

SEAN PATTERSON, WILHELMINA MODELS: It can be a tough sell. And that can be heartbreaking sometimes. Because you know, you have some really unbelievably gifted people, beautiful people who aren't given the opportunity to break through.

CARROLL: The models complain.

CAROLINE RIBEIRO, MODEL: That's the way it is. And it's never going to change, ever.

CARROLL: So do some designers.

MATTHEW WILLIAMSON, DESIGNER: There's resistance. I don't know what it is. I think it's probably getting less and less so.

CARROLL: Few can pinpoint who's at fault. KEBEDE: I don't know if there's a business reason for it or not.

CARROLL: The omissions are evident. Take fashion giant Prada. We looked at runway shows going back several years. Last year, no women of color. 2003, none. 2002, zero. Prada has not put a woman of color on its runway in at least six years.

Prada's spokeswoman has not returned our calls.

MICHAELA ANGELA DAVIS, FASHION BEAUTY MANAGER, "ESSENCE": It's kind of safe (ph). There's one Naomi. There's one Alek Wek. There's one Liya. You know? But when you've got all of them on a runway, it creates a shift. And it's about -- I think people aren't quite comfortable with what that shift is.

CARROLL (on camera): What is it going to take to change? I mean, you know this industry.

UNIDENTIFIED FEMALE: Activism. Activism. It really is.

CARROLL: Until then, Liya will keep pushing.

KEBEDE: We have to keep going. You have to just persevere in it.

CARROLL: And striving to be the face of change.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

O'BRIEN: Fashion Week ends tomorrow with collections from Ralph Lauren and also J. Lo -- Bill.

HEMMER: For just a few hundred bucks, the naming rights for a glitzy sports arena can be all yours. Andy's "Minding Your Business."

Back in a moment here. Live in Manhattan here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. There is a new way to get your name in lights. And with that and a check of the markets, back to Andy Serwer, "Minding Your Business."

Twenty-three minutes old.

ANDY SERWER, "FORTUNE" MAGAZINE: That's right.

HEMMER: How are we doing?

SERWER: We're doing OK this morning. Stocks rebounding after yesterday's losses. Let's go to the big board and see what's happening right about now. Twenty-nine points to the up side. Dell reports after the bell. Interesting news from Sara Lee. They're going to be selling their apparel business, which includes Hane's, Playtex and the Wonderbra. Also -- this is really interesting -- a new CEO, a woman, Brenda Barnes.

So as of yesterday morning, we had eight women who were CEOs of Fortune 500 companies. Then we were down to seven with Carly Fiorina leaving. Now we're back to eight. Interesting stuff.

HEMMER: Moving fast.

SERWER: Yes, indeed. The Fleet Center at Boston is auctioning off naming rights to that facility, one day at a time, on eBay. And you can simply buy the name and put your name up there. And here's what's happening.

O'BRIEN: For a day?

SERWER: For a day, yes, because it would get expensive do it more than that. But they're letting everyone or anyone do it, a business, an individual. One guy did it for $500.

What happened is Bank of America bought Fleet last year. They don't want to continue the whole deal. This is where the Celtics play and where the Bruins used to play.

And you can just go right on there. One guy got it for $500. It's around $2,000 right now. You can just put your name up there. You don't get it on the outside. You get it on the inside. The answering machine says -- here are some names, the Serwer Center, The Jack -- The Jack, like the Jake.

HEMMER: The Jack!

SERWER: The House of Hemmer and, of course, the Sole-Dome. The Sole-Dome in Boston.

O'BRIEN: I'd cough up two grand for that.

SERWER: The Sole-Dome.

HEMMER: The Cafferty Coliseum?

SERWER: No, The Jack.

HEMMER: For a day?

SERWER: The Jack.

CAFFERTY: Do they make those other things that you get in the drugstores, that company, Fleet?

SERWER: No. They don't. That's out at Yankee Stadium.

O'BRIEN: I don't even want to know where that came from. Let's talk about the question of the day, shall we? CAFFERTY: Should Camilla Parker Bowles be the next queen of England is the way the issue...?

O'BRIEN: I'm sorry. Did I kick you?

CAFFERTY: Yes, you did.

HEMMER: That was for...

CAFFERTY: The weighty issue that we're dealing with on this program, which mercifully is about over.

John: "Does it really matter? They're all just figureheads anyway. It's not as if alliances and the fates of nations depend on it anymore." You're right, John.

Tina in New York, "No, it's scandalous. Make no mistake, Camilla chose Diana because she thought she was stupid and would let her have her husband and the goodies he would bring her as mistress. I hope for both of them, they're receiving the same kindness in life that they both gave Diana."

And Greg in Westville, Nova Scotia, "Jolly good morning, Jack. What difference would it make? She only has to publicly announce a charity of her choice and learn to wave from the rear seat of a Bentley. And Jack, please don't go if you get a call to knighthood. The sword works as well horizontally as it does vertically."

HEMMER: Sir Jack. Like it.

Put this topic to rest.

SERWER: This is the wave, right? This is the wave? The royal wave?

CAFFERTY: I've never been in the back seat of a Bentley. Have you, Soledad? No.

HEMMER: Kick him again. Kick him again.

O'BRIEN: I had a girlfriend who had a Bentley once. And yes, I rode in a Bentley.

CAFFERTY: Now you know the rest of the story.

SERWER: All the news you need to know.

HEMMER: Let's get a break here. We're expecting to hear about the pope being released from the hospital later this morning. There are still many questions, though, about his future. They have that next hour with Rick and Betty on "CNN LIVE TODAY."

We're back in a moment here on AMERICAN MORNING, right after this.

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