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American Morning

NYC Terror Target?; Update on Michael Jackson Trial; Martha Stewart's Makeover

Aired March 02, 2005 - 07:30   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, CNN ANCHOR: Good morning, everybody. It's 7:30 here in New York. Good to have you along with us today.
SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back.

We've got a developing story to get to right away, reports of a possible link between the Madrid train bombing and New York's Grand Central Station. Terrorists in Spain may have been scouting that station. That, at least, is what the Madrid newspaper, "El Mundo," is reporting today.

Madrid bureau chief Al Goodman joins us by phone this morning.

Al -- good morning.

AL GOODMAN, CNN MADRID BUREAU CHIEF: Good morning.

Well, what we've been able to confirm with a U.S. embassy official in Madrid is that in December of 2004, last December, U.S. authorities received information related to Grand Central Station from Spanish law enforcement authorities, according to this U.S. embassy official. But that is what we have confirmed at this point.

There are a lot of questions raised by this newspaper report in Spain. Specifically, the newspaper points out -- but very low in its story, not at the top -- that Spanish police don't know who actually made the handwritten drawing of Grand Central Station, or who compiled information in the computer, also supposedly related to Grand Central Station.

Now, this all was seized in Madrid in March of 2004 shortly after those horrendous Madrid train bombings that killed 191 people. And they were seized in an apartment, where three suspects linked to that Madrid train bombing also lived.

But this information wasn't given to U.S. authorities until December, because apparently Spanish authorities weren't able to get a clear picture of what actually was at stake here, according to the newspaper report. There still are many, many questions, Soledad, especially whether these three individuals linked to the train bombings actually knew about this computer information or had actually prepared it. So, there are a lot of questions we're still working on -- Soledad.

O'BRIEN: Has there been, Al, any response by Madrid authorities to this report? GOODMAN: We have checked with the spokes -- the main office for the Spanish prosecutors who reportedly had turned this information over to U.S. authorities. Ad a prosecutor does confirm to us that there has been constant and fluid contact between Spanish authorities and U.S. authorities related to terrorism and movement of terrorists, which would be of interest to both countries. But the Spanish prosecutor's office is saying publicly that they're not commenting on specific events, such as this passing of information in December, 2004.

Now, we have the U.S. officials confirming that information was passed. What we don't know is how relevant that information was or actually how new that information was when the U.S. officials got it back in December -- Soledad.

O'BRIEN: All right, Al Goodman, thanks. Obviously, we'll keep watching that.

First, though, let's get another check on the headlines. Carol Costello is with us this morning.

Good morning.

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

"Now in the News."

The BTK serial killer investigation is ongoing this morning in Kansas. A suspect in the case, Dennis Rader, was charged with 10 counts of murder. In his first court appearance yesterday, wearing an orange jumpsuit, Rader said he understood the charges. Authorities are looking into other unsolved murders in the area to see if there is a possible link.

The man accused of plotting with al Qaeda to kill President Bush is staying behind bars this morning. Twenty-three-year-old Ahmed Abu Ali has been denied bail. A federal judge has called him a great danger and a flight risk. During a hearing, FBI agents showed what they said was an alleged confession from Ali. His lawyer claims the confession was made after Ali was tortured in Saudi Arabia.

Pope John Paul II is skipping his weekly audience. Vatican sources say the pope will miss today's session to concentrate on regaining his speech. The pontiff spoke for the first time yesterday since undergoing a tracheotomy last week. Another official medical update on the pope's condition is expected tomorrow.

And he's more than halfway there. Millionaire and adventurer Steve Fossett is now flying over Asia. He's planning to land back in Salina, Kansas, sometime tomorrow, less than 70 hours after taking off from that point. If he makes it, he will be the first person to fly solo around the world without stopping. His project manager says Fossett is in remarkably good spirits for someone who has been awake for over 24 hours and is now living on milkshakes and a wing and a prayer, so to speak -- Bill. HEMMER: So far, so good, though. Keep it trucking. Thank you, Carol.

Prosecutors continue presenting their case this morning in Michael Jackson's child molestation trial. Jurors heard from both sides on Tuesday, with the state calling its first witness and the defense finishing its opening statement.

Court TV's Lisa Bloom is not in the courtroom in California, but she is here in New York in our studio.

Lisa, nice to see you. Good morning to you.

LISA BLOOM, COURT TV: Good morning.

HEMMER: Three points the defense tried to bring out yesterday, so far in this case anyway. No. 1, Jackson's attorney, Tom Mesereau, addressed these allegations that Jackson used alcohol and pornographic magazines to molest this young boy.

BLOOM: Well, they had to respond to that, because there are going to be corroborating witnesses to say that the boy was, in fact, drunk and stumbling around Neverland. Mesereau says the boy and his siblings got into alcohol on their own when they were left unsupervised.

HEMMER: Broke into the cabinet essentially.

BLOOM: Right. And that Jackson did not know about it and is not responsible for it. And that's important, because the prosecution has to show not just that the kids drank alcohol at Neverland, but that Jackson gave it to the boy in order to seduce him. If the boy just simply did it on his own, then they're not going to win on that charge.

HEMMER: How does he explain the pornographic material then and the fingerprints inside of it?

BLOOM: He admits that Jackson does like -- quote -- "girly magazines." And I think that helps the defense and makes him sound like a heterosexual adult rather than a gay pedophile as the prosecution wants to make him out as. And, again, he says that the children got into that on their own. When Jackson found out about it, he locked away the porn.

HEMMER: And it was Jackson who tried to take the magazine away from the children, and that's how the fingerprints found its way inside.

BLOOM: Exactly, that's going to be the defense.

HEMMER: Point No. 2, Mesereau is saying that no DNA has been found that links the accuser to Michael Jackson's bedroom. How significant could that be?

BLOOM: I don't think that's all that significant, because the jurors saw the boy holding hands with Jackson on the tape. We know that the boy has been at Neverland, that he was there many times. So the lack of DNA, I don't think, is all that significant.

HEMMER: What do you make of Mesereau hinting that Jackson might testify?

BLOOM: I think that's much ado about nothing. I would be shocked...

HEMMER: Nothing?

BLOOM: ... if Michael Jackson testifies. Let me tell you, Bill, he testified in that same courthouse in 2002 in a business case. It was a disaster for him on the stand. He was terrible. He was making faces. He just -- it was an absurdity. He lost the case, by the way, to the tune of $5 million. There is no way that Tom Mesereau is going to let Jackson testify in this case.

HEMMER: Now for the president. Their first witness is Martin Bashir, the documentary filmmaker who now works for ABC.

BLOOM: Yes.

HEMMER: Why begin with Bashir?

BLOOM: Well, really they began with the documentary. Bashir was just there to say this is his documentary, to authenticate it and set it up. That documentary, I think, is very important. It's the closest the prosecution has to a confession.

Of course, Jackson doesn't confess to molesting the boy, but he does confess to -- quote -- "sharing his bed with many children." And he vigorously defends sharing his bed with little boys even after the '93 accusations, which the jury heard, because they heard in the documentary that Jackson had been accused before. So it really sets up the entire case.

HEMMER: There was a suggestion for those inside the courtroom this documentary may have helped Jackson or it may have hurt him.

BLOOM: Well, there are positive things in the documentary about Jackson. That he clearly loves children. That he's a philanthropist. That he helps a lot of children, brings them to Neverland for good purposes.

HEMMER: Today, what happens?

BLOOM: I'll give you a little preview of today. Ann Kite, also known as Ann Gabriel, will be on the stand. She was brought in on the Jackson team as a crisis manager when everything started to deteriorate between Jackson and the family. She says one of the Jackson lawyers said to her -- quote -- "We're going to make this mother look like a crack (EXPLETIVE DELETED)." In other words, they were going to go after this family. Well, if you believe the prosecution, that's exactly what happened. That's the defense strategy now in the case. HEMMER: Well, we had mentioned there are lurid details. It looks like it will continue today.

BLOOM: Absolutely.

HEMMER: Thank you, Lisa. Lisa Bloom from Court TV.

BLOOM: Thank you.

HEMMER: All right. Here's Soledad.

O'BRIEN: As Martha Stewart prepares to be released from prison as early as Friday, her company, Martha Stewart Living Omnimedia, has announced the resignation of its executive vice president. Last week, the company reported its fourth consecutive operating loss, nearly $9.5 million during the final quarter of last year.

So, from domestic diva to convicted felon, will Stewart be able to help her company, repair her reputation and make a comeback? It's a pretty tall order.

National correspondent Kelly Wallace has the first in a series of reports on Martha's post-prison makeover.

Good morning.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning.

O'BRIEN: That's a lot for her to tackle.

WALLACE: I was going to say, she has a lot of work ahead, no question, Soledad. Her image, her brand rocked by all of this. The trial, the sentencing, spending time in jail.

So, what we set out to determine: What does Martha Stewart need to do to repair her image? What can be done to rebrand Martha Stewart?

(BEGIN VIDEOTAPE)

WALLACE (voice over): What do you do after you've been called everything from liar to poster child for bad boss behavior to symbol of corporate greed, and after you haven't sounded all that remorseful?

MARTHA STEWART, MARTHA STEWART LIVING OMNIMEDIA: I'm not afraid. I'm not afraid whatsoever.

WALLACE: You might wand to find someone like Linda Kaplan Thaler, CEO of one of the fastest-growing advertising agencies in the U.S. How would she repair Martha's image?

UNIDENTIFIED FEMALE: Humor. Lighten up. OK?

WALLACE: Thaler (ph) says humor can make Martha seem less pretentious.

UNIDENTIFIED FEMALE: So make me laugh, Martha.

WALLACE (on camera): Make you laugh.

UNIDENTIFIED FEMALE: Hired a comedy writer.

WALLACE: Hire...

UNIDENTIFIED FEMALE: That's the first thing that I would do, hire a comedian.

WALLACE (voice over): No. 2, humility.

UNIDENTIFIED FEMALE: Let's see the humble side of Martha Stewart, OK? People love in this country when somebody's been knocked down. We love to knock people down, and then we love to build them up again.

WALLACE: And that is why prison may, ironically, turn out to be one of Martha's best career moves. After all, her ordeal has brought her two new television shows, including an apprentice-like primetime program and a return to the spotlight at her company after it distanced itself from the domestic diva. Thaler (ph) says that was a big mistake.

UNIDENTIFIED FEMALE: A big mistake. The absolute worst thing you can do. She is the brand. That's like taking potato chips and say, OK, we're going to do it now but without the potatoes. It can't happen!

WALLACE: The rest of Thaler's (ph) five-point point plan for Martha, empathy. Show you are more sensitive after serving time. Plan B, embrace the post-prison chapter of your life since Plan A did not include five months behind bars. And finally, give them a surprise.

UNIDENTIFIED FEMALE: Astonish me. Startle me. When I see you, show me a different side that I haven't seen before.

WALLACE (on camera): If she's trying to incorporate your five- point plan, what do you think are the biggest challenges she'll face?

UNIDENTIFIED FEMALE: Is not listening to her gut.

WALLACE (voice over): And, of course, remember, Martha, as you begin your makeover following Camp Cupcake, first impressions are, oh, so important.

UNIDENTIFIED FEMALE: I wouldn't wear stripes on the first day.

(END VIDEOTAPE)

WALLACE: A slight joke there, but this is all serious business. And since Martha Stewart's sentencing last year, Soledad, her stock price has quadrupled. And according to today's "New York Post," she is going to be named in "Ink" magazine's April issue one of 26 entrepreneurs we love -- quote -- "because she took one for the time." O'BRIEN: You know, it could be a really good career move in the very end going off to prison. What's in the series tomorrow?

WALLACE: Tomorrow we look at the rules following Martha Stewart's release. She will be under house arrest. We'll talk about what that means, what she can do and can't do.

O'BRIEN: All right, Kelly, thanks.

WALLACE: Sure.

O'BRIEN: Bill.

HEMMER: The man at the center of the WorldCom scandal tries a new tactic on the stand. It's called the (UNINTELLIGIBLE) and confused defense. Andy is "Minding Your Business", explains that in a moment.

Also, 50 Cent's protege in a shooting at a New York radio station. Is there a new rap war to talk about? That's in "90-Second Pop."

But before we go to break, back to Chad, a quick check there.

(WEATHER REPORT)

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. Back to Jack now and the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: Thank you, Bill.

Separation of church and state comes before the Supreme Court of the United States today. The court will hear arguments in two cases about whether displays of the Ten Commandments on public property are unconstitutional.

A recent "USA Today"/CNN/Gallup poll indicates a majority of Americans find a monument to the commandments on the grounds of their state's capitol appropriate. Only 20 percent disapprove.

The commandments are carved on government buildings all across the country. They're even on the ceiling of the U.S. Supreme Court.

Here's the question: Should the Ten Commandments be displayed on government property?

Robert in Washington writes: "What's wrong with the Ten Commandments that upsets people so much? I would put the Ten Commandments in front of every government establishment. And if you have a problem with it, don't look at it."

Victor in New York writes: "Absolutely not. It's ironic that at this time, while the United States is trying to get other nations to move away from religious domination of their governments, there is a movement trying to push us the other way."

Doug in New Jersey writes: "As a Christian, it's my duty to have the commandments in my heart. Posting them in the courthouse, town hall or toll plaza simply will not enhance their sanctity."

Chris in Maryland writes: "The Ten Commandments are good things by which to live. But since they are from a Bible, they should not be on any government's door step. If you post the commandments, why not post the five pillars of Islam, scriptures from Hinduism and Confucian quotes?

And Sean in Virginia: "Displaying the Ten Commandments on state property is an act of hypocrisy. Those who push this are usually the ones who pay the least attention to what the commandments say."

HEMMER: A question of church and state. Thank you, Jack.

O'BRIEN: I wonder if it's found unconstitutional, what do they do with all of the government buildings?

ANDY SERWER, "FORTUNE" MAGAZINE: Get the jackhammers out.

O'BRIEN: Yes, kind of.

CAFFERTY: I suppose.

SERWER: Yes, I mean...

CAFFERTY: I don't know.

O'BRIEN: We'll have to see. All right, Jack, thanks.

Former WorldCom chief Bernie Ebbers takes the witness stand for a second day. Andy Serwer is "Minding Your Business." I like the strategy here.

SERWER: Yes. Well, you just keep saying I don't know. I don't know. I didn't know. I didn't know.

O'BRIEN: I'm confused.

SERWER: Yes, I'm confused. And that's what Bernie Ebbers did yesterday. This is our daily trial update. Bernie Ebbers yesterday sparring with government prosecutors, saying he didn't know.

He was somewhat argumentative, and this may not play in his favor, of course. A couple of jurors slept, according to news reports.

One kind of funny exchange. The government prosecutor asked him about a particular document. He goes, you know, I probably threw that in the trash.

Tough to handicap how this is going to go. He's going to be on the stand again today, and it probably is going to go to the jury tomorrow. Another trial to keep you up-to-date with, Richard Scrushy from HealthSouth down in Alabama. Here's what's going on with him. A subordinate testified yesterday that Scrushy said the reason they should keep the fraud going was because Scrushy was scared of getting sued by shareholders. If we don't keep the fraud going, we're going to get sued.

But, Richard, if you keep the fraud going, you're going to get sued. See, these guys box themselves in.

O'BRIEN: Between a rock and a hard place.

SERWER: Yes, that's what happened to Mr. Scrushy. And it will be interesting, you know, he may take the stand too. And that would be really -- you know, how I love that one. It will be good stuff.

CAFFERTY: Oh, yes, he's a whack job...

SERWER: Well...

CAFFERTY: ... of the first order.

SERWER: An interesting man, yes.

CAFFERTY: Whack job.

O'BRIEN: Thank you for that.

SERWER: Yes.

O'BRIEN: Thank you for that trial update.

SERWER: You're welcome.

O'BRIEN: Well, one TV network turns the theater of the absurd into a new TV series. Are you ready to invite Michael Jackson into your living room every night? "90-Second Pop" is up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: We're going to be playing a lot of Michael Jackson, I fear, for the next few months. Welcome, everybody. It's time for "90-Second Pop" on a Wednesday.

Our pop panel this morning, Andy Borowitz from Borowitzreport.com. Amy Barnett with "Teen People." And Toure, CNN's pop culture correspondent.

Good morning.

TOURE, CNN POP CULTURE CORRESPONDENT: You look so hot today, I don't think I can even pay attention.

O'BRIEN: Forget the segment. Let's just talk about me. No, I'm joking. Let's talk a little bit about this new show, program, thing on E!

TOURE: Snore-fest.

AMY BARNETT, "TEEN PEOPLE" MAGAZINE: Right, exactly.

O'BRIEN: Snore-fest, I think it's fair to call it. Let's show everybody what we're talking about. They basically are reenacting the trial, which I thought would be kind of exciting. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: She claimed that she was the victim and her children were the victim of battery, false imprisonment and infliction of emotional distress. This was in July of 1999. Almost a year later, she amended that complaint to add sexual assault by a security officer.

(END VIDEO CLIP)

O'BRIEN: Oh, my god, that was only 10 seconds of the trial.

ANDY BOROWITZ, BOROWITZREPORT.COM: Yes.

(CROSSTALK)

O'BRIEN: I'm, like, falling asleep in my chair.

BOROWITZ: Instead of "Man in the Mirror" we should have played "Bad." This is, like, what is this? This is like blurring the line between news and karaoke. I mean, this is just unbelievable.

BARNETT: It's American pop culture goes Vegas. That's what it is.

TOURE: Right, right, right.

O'BRIEN: So, they're reenacting the trial. The guy who looks like -- who is supposed to look like Michael Jackson, not so much.

BOROWITZ: No.

BARNETT: How much is he getting paid? Because he's not going to testify, so all he's going to do this entire reenactment is just sit there and look very pensive.

BOROWITZ: My prediction is the No. 1 Halloween outfit this year is going to be Mesereau. A Mesereau wig.

O'BRIEN: I think...

BOROWITZ: It's going to be awesome, though. The...

O'BRIEN: He looks good.

BOROWITZ: Yes.

O'BRIEN: He looks a lot like Mesereau.

TOURE: It's like we're back O.J.-land, right?

BOROWITZ: Right.

TOURE: It's a multimedia Greek tragedy, replayed here, and the smoking gun giving you blow by blow, and...

O'BRIEN: Didn't you think it was going to be more exciting, though?

TOURE: No, this couldn't be more boring.

O'BRIEN: I was like...

BARNETT: Yes, I think so.

BOROWITZ: This is, I think, evidence of why people try so hard to get out of jury duty. I mean, this is like torture.

O'BRIEN: I actually started feeling sorry for people like Jeff Toobin, who are in the courtroom now. Poor Jeff. He must be so bored if this is really how it is.

BOROWITZ: No, no, that is a Jeff Toobin look-alike. It looks a like a lot like him. They nailed him, I thought.

O'BRIEN: All right. Let's talk about my favorite topic, rappers and rapper wars.

BOROWITZ: Rapper wars.

O'BRIEN: Why not? OK. The Game, huge debut, big deal, protege of 50 Cent.

BOROWITZ: Right.

O'BRIEN: They were friends.

BARNETT: It was very...

O'BRIEN: Now they're not friends.

BOROWITZ: Right.

O'BRIEN: And now, like, gunshots going each and every -- what?

TOURE: Do you know...

O'BRIEN: Didn't I sum it up well, kind of?

TOURE: Do you know the phrase...

BOROWITZ: Totally, and you got the fitty (ph) pronunciation.

TOURE: Do you what we mean when we say "my people?" "My people?" Like, oh, god, what are you guys doing? But it's like we have this marketing tool now as getting shot or getting shot at, right?

O'BRIEN: Well, for a rapper, it's a good tool.

TOURE: Yes, like, 50 Cent got shot at when his album first came out and then, like, not get again until then album was almost done. Now, his album comes out again tomorrow.

O'BRIEN: There's a downside to that marketing strategy.

TOURE: Exactly, if you get hit with a bullet.

O'BRIEN: If you get hit, you could die.

BOROWITZ: You know, the one part -- Toure, maybe you can explain to me -- the part of the story that confuses me is I guess this all got started because 50 Cent -- fitty (ph) Cent, I'm sorry -- threatened to kick The Game out of the G-Unit.

O'BRIEN: He did, his label.

BOROWITZ: OK. And then here's what I don't get. What are the advantages of being in the G-Unit? Is there dental? I mean, are there benefits?

(CROSSTALK)

BARNETT: The rap wars are so 1990.

O'BRIEN: It's like 1988.

BARNETT: They're so...

BOROWITZ: We're so over the rap wars.

BARNETT: Aren't you, though? I mean, we're so over them.

TOURE: I know. It happened at Hot 97. Nothing good happens at Hot 97 these days, right? Which also is the focus of the Lil' Kim shootout, right?

BOROWITZ: Right.

TOURE: Well, she's now on trial for lying to the grand jury for a shootout with, I kid you not, a rap group known as CNN.

BOROWITZ: Oh, really?

TOURE: Tony Noriega (ph) of CNN.

O'BRIEN: Nobody we know in that, right?

TOURE: Nobody we know. They're not related to us.

O'BRIEN: Whew! BARNETT: (UNINTELLIGIBLE) rappers over there?

O'BRIEN: I just don't want any, you know, gunshots flying here because we got the rap wars going on.

BARNETT: I'm wearing a vest, so I'm OK.

BOROWITZ: And, there's also this rapper now named Lou Dobbs. Did you know that?

TOURE: No, but Wolf Blitzer is a great rap name.

BOROWITZ: That is true.

O'BRIEN: And on that, we're going to leave it there. You guys, as always, thank you.

Bill -- back to you.

HEMMER: I'm thinking Hemmer-time.

(LAUGHTER)

HEMMER: Thank you. See you later.

Top stories in a moment here. Also this developing story out of Spain today. Investigators may have found a link between the Madrid train bombings a year ago and New York's Grand Central Station. We'll look at that from overseas in a moment as we continue after this.

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Aired March 2, 2005 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning, everybody. It's 7:30 here in New York. Good to have you along with us today.
SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back.

We've got a developing story to get to right away, reports of a possible link between the Madrid train bombing and New York's Grand Central Station. Terrorists in Spain may have been scouting that station. That, at least, is what the Madrid newspaper, "El Mundo," is reporting today.

Madrid bureau chief Al Goodman joins us by phone this morning.

Al -- good morning.

AL GOODMAN, CNN MADRID BUREAU CHIEF: Good morning.

Well, what we've been able to confirm with a U.S. embassy official in Madrid is that in December of 2004, last December, U.S. authorities received information related to Grand Central Station from Spanish law enforcement authorities, according to this U.S. embassy official. But that is what we have confirmed at this point.

There are a lot of questions raised by this newspaper report in Spain. Specifically, the newspaper points out -- but very low in its story, not at the top -- that Spanish police don't know who actually made the handwritten drawing of Grand Central Station, or who compiled information in the computer, also supposedly related to Grand Central Station.

Now, this all was seized in Madrid in March of 2004 shortly after those horrendous Madrid train bombings that killed 191 people. And they were seized in an apartment, where three suspects linked to that Madrid train bombing also lived.

But this information wasn't given to U.S. authorities until December, because apparently Spanish authorities weren't able to get a clear picture of what actually was at stake here, according to the newspaper report. There still are many, many questions, Soledad, especially whether these three individuals linked to the train bombings actually knew about this computer information or had actually prepared it. So, there are a lot of questions we're still working on -- Soledad.

O'BRIEN: Has there been, Al, any response by Madrid authorities to this report? GOODMAN: We have checked with the spokes -- the main office for the Spanish prosecutors who reportedly had turned this information over to U.S. authorities. Ad a prosecutor does confirm to us that there has been constant and fluid contact between Spanish authorities and U.S. authorities related to terrorism and movement of terrorists, which would be of interest to both countries. But the Spanish prosecutor's office is saying publicly that they're not commenting on specific events, such as this passing of information in December, 2004.

Now, we have the U.S. officials confirming that information was passed. What we don't know is how relevant that information was or actually how new that information was when the U.S. officials got it back in December -- Soledad.

O'BRIEN: All right, Al Goodman, thanks. Obviously, we'll keep watching that.

First, though, let's get another check on the headlines. Carol Costello is with us this morning.

Good morning.

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

"Now in the News."

The BTK serial killer investigation is ongoing this morning in Kansas. A suspect in the case, Dennis Rader, was charged with 10 counts of murder. In his first court appearance yesterday, wearing an orange jumpsuit, Rader said he understood the charges. Authorities are looking into other unsolved murders in the area to see if there is a possible link.

The man accused of plotting with al Qaeda to kill President Bush is staying behind bars this morning. Twenty-three-year-old Ahmed Abu Ali has been denied bail. A federal judge has called him a great danger and a flight risk. During a hearing, FBI agents showed what they said was an alleged confession from Ali. His lawyer claims the confession was made after Ali was tortured in Saudi Arabia.

Pope John Paul II is skipping his weekly audience. Vatican sources say the pope will miss today's session to concentrate on regaining his speech. The pontiff spoke for the first time yesterday since undergoing a tracheotomy last week. Another official medical update on the pope's condition is expected tomorrow.

And he's more than halfway there. Millionaire and adventurer Steve Fossett is now flying over Asia. He's planning to land back in Salina, Kansas, sometime tomorrow, less than 70 hours after taking off from that point. If he makes it, he will be the first person to fly solo around the world without stopping. His project manager says Fossett is in remarkably good spirits for someone who has been awake for over 24 hours and is now living on milkshakes and a wing and a prayer, so to speak -- Bill. HEMMER: So far, so good, though. Keep it trucking. Thank you, Carol.

Prosecutors continue presenting their case this morning in Michael Jackson's child molestation trial. Jurors heard from both sides on Tuesday, with the state calling its first witness and the defense finishing its opening statement.

Court TV's Lisa Bloom is not in the courtroom in California, but she is here in New York in our studio.

Lisa, nice to see you. Good morning to you.

LISA BLOOM, COURT TV: Good morning.

HEMMER: Three points the defense tried to bring out yesterday, so far in this case anyway. No. 1, Jackson's attorney, Tom Mesereau, addressed these allegations that Jackson used alcohol and pornographic magazines to molest this young boy.

BLOOM: Well, they had to respond to that, because there are going to be corroborating witnesses to say that the boy was, in fact, drunk and stumbling around Neverland. Mesereau says the boy and his siblings got into alcohol on their own when they were left unsupervised.

HEMMER: Broke into the cabinet essentially.

BLOOM: Right. And that Jackson did not know about it and is not responsible for it. And that's important, because the prosecution has to show not just that the kids drank alcohol at Neverland, but that Jackson gave it to the boy in order to seduce him. If the boy just simply did it on his own, then they're not going to win on that charge.

HEMMER: How does he explain the pornographic material then and the fingerprints inside of it?

BLOOM: He admits that Jackson does like -- quote -- "girly magazines." And I think that helps the defense and makes him sound like a heterosexual adult rather than a gay pedophile as the prosecution wants to make him out as. And, again, he says that the children got into that on their own. When Jackson found out about it, he locked away the porn.

HEMMER: And it was Jackson who tried to take the magazine away from the children, and that's how the fingerprints found its way inside.

BLOOM: Exactly, that's going to be the defense.

HEMMER: Point No. 2, Mesereau is saying that no DNA has been found that links the accuser to Michael Jackson's bedroom. How significant could that be?

BLOOM: I don't think that's all that significant, because the jurors saw the boy holding hands with Jackson on the tape. We know that the boy has been at Neverland, that he was there many times. So the lack of DNA, I don't think, is all that significant.

HEMMER: What do you make of Mesereau hinting that Jackson might testify?

BLOOM: I think that's much ado about nothing. I would be shocked...

HEMMER: Nothing?

BLOOM: ... if Michael Jackson testifies. Let me tell you, Bill, he testified in that same courthouse in 2002 in a business case. It was a disaster for him on the stand. He was terrible. He was making faces. He just -- it was an absurdity. He lost the case, by the way, to the tune of $5 million. There is no way that Tom Mesereau is going to let Jackson testify in this case.

HEMMER: Now for the president. Their first witness is Martin Bashir, the documentary filmmaker who now works for ABC.

BLOOM: Yes.

HEMMER: Why begin with Bashir?

BLOOM: Well, really they began with the documentary. Bashir was just there to say this is his documentary, to authenticate it and set it up. That documentary, I think, is very important. It's the closest the prosecution has to a confession.

Of course, Jackson doesn't confess to molesting the boy, but he does confess to -- quote -- "sharing his bed with many children." And he vigorously defends sharing his bed with little boys even after the '93 accusations, which the jury heard, because they heard in the documentary that Jackson had been accused before. So it really sets up the entire case.

HEMMER: There was a suggestion for those inside the courtroom this documentary may have helped Jackson or it may have hurt him.

BLOOM: Well, there are positive things in the documentary about Jackson. That he clearly loves children. That he's a philanthropist. That he helps a lot of children, brings them to Neverland for good purposes.

HEMMER: Today, what happens?

BLOOM: I'll give you a little preview of today. Ann Kite, also known as Ann Gabriel, will be on the stand. She was brought in on the Jackson team as a crisis manager when everything started to deteriorate between Jackson and the family. She says one of the Jackson lawyers said to her -- quote -- "We're going to make this mother look like a crack (EXPLETIVE DELETED)." In other words, they were going to go after this family. Well, if you believe the prosecution, that's exactly what happened. That's the defense strategy now in the case. HEMMER: Well, we had mentioned there are lurid details. It looks like it will continue today.

BLOOM: Absolutely.

HEMMER: Thank you, Lisa. Lisa Bloom from Court TV.

BLOOM: Thank you.

HEMMER: All right. Here's Soledad.

O'BRIEN: As Martha Stewart prepares to be released from prison as early as Friday, her company, Martha Stewart Living Omnimedia, has announced the resignation of its executive vice president. Last week, the company reported its fourth consecutive operating loss, nearly $9.5 million during the final quarter of last year.

So, from domestic diva to convicted felon, will Stewart be able to help her company, repair her reputation and make a comeback? It's a pretty tall order.

National correspondent Kelly Wallace has the first in a series of reports on Martha's post-prison makeover.

Good morning.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning.

O'BRIEN: That's a lot for her to tackle.

WALLACE: I was going to say, she has a lot of work ahead, no question, Soledad. Her image, her brand rocked by all of this. The trial, the sentencing, spending time in jail.

So, what we set out to determine: What does Martha Stewart need to do to repair her image? What can be done to rebrand Martha Stewart?

(BEGIN VIDEOTAPE)

WALLACE (voice over): What do you do after you've been called everything from liar to poster child for bad boss behavior to symbol of corporate greed, and after you haven't sounded all that remorseful?

MARTHA STEWART, MARTHA STEWART LIVING OMNIMEDIA: I'm not afraid. I'm not afraid whatsoever.

WALLACE: You might wand to find someone like Linda Kaplan Thaler, CEO of one of the fastest-growing advertising agencies in the U.S. How would she repair Martha's image?

UNIDENTIFIED FEMALE: Humor. Lighten up. OK?

WALLACE: Thaler (ph) says humor can make Martha seem less pretentious.

UNIDENTIFIED FEMALE: So make me laugh, Martha.

WALLACE (on camera): Make you laugh.

UNIDENTIFIED FEMALE: Hired a comedy writer.

WALLACE: Hire...

UNIDENTIFIED FEMALE: That's the first thing that I would do, hire a comedian.

WALLACE (voice over): No. 2, humility.

UNIDENTIFIED FEMALE: Let's see the humble side of Martha Stewart, OK? People love in this country when somebody's been knocked down. We love to knock people down, and then we love to build them up again.

WALLACE: And that is why prison may, ironically, turn out to be one of Martha's best career moves. After all, her ordeal has brought her two new television shows, including an apprentice-like primetime program and a return to the spotlight at her company after it distanced itself from the domestic diva. Thaler (ph) says that was a big mistake.

UNIDENTIFIED FEMALE: A big mistake. The absolute worst thing you can do. She is the brand. That's like taking potato chips and say, OK, we're going to do it now but without the potatoes. It can't happen!

WALLACE: The rest of Thaler's (ph) five-point point plan for Martha, empathy. Show you are more sensitive after serving time. Plan B, embrace the post-prison chapter of your life since Plan A did not include five months behind bars. And finally, give them a surprise.

UNIDENTIFIED FEMALE: Astonish me. Startle me. When I see you, show me a different side that I haven't seen before.

WALLACE (on camera): If she's trying to incorporate your five- point plan, what do you think are the biggest challenges she'll face?

UNIDENTIFIED FEMALE: Is not listening to her gut.

WALLACE (voice over): And, of course, remember, Martha, as you begin your makeover following Camp Cupcake, first impressions are, oh, so important.

UNIDENTIFIED FEMALE: I wouldn't wear stripes on the first day.

(END VIDEOTAPE)

WALLACE: A slight joke there, but this is all serious business. And since Martha Stewart's sentencing last year, Soledad, her stock price has quadrupled. And according to today's "New York Post," she is going to be named in "Ink" magazine's April issue one of 26 entrepreneurs we love -- quote -- "because she took one for the time." O'BRIEN: You know, it could be a really good career move in the very end going off to prison. What's in the series tomorrow?

WALLACE: Tomorrow we look at the rules following Martha Stewart's release. She will be under house arrest. We'll talk about what that means, what she can do and can't do.

O'BRIEN: All right, Kelly, thanks.

WALLACE: Sure.

O'BRIEN: Bill.

HEMMER: The man at the center of the WorldCom scandal tries a new tactic on the stand. It's called the (UNINTELLIGIBLE) and confused defense. Andy is "Minding Your Business", explains that in a moment.

Also, 50 Cent's protege in a shooting at a New York radio station. Is there a new rap war to talk about? That's in "90-Second Pop."

But before we go to break, back to Chad, a quick check there.

(WEATHER REPORT)

(COMMERCIAL BREAK)

HEMMER: Welcome back, everybody. Back to Jack now and the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: Thank you, Bill.

Separation of church and state comes before the Supreme Court of the United States today. The court will hear arguments in two cases about whether displays of the Ten Commandments on public property are unconstitutional.

A recent "USA Today"/CNN/Gallup poll indicates a majority of Americans find a monument to the commandments on the grounds of their state's capitol appropriate. Only 20 percent disapprove.

The commandments are carved on government buildings all across the country. They're even on the ceiling of the U.S. Supreme Court.

Here's the question: Should the Ten Commandments be displayed on government property?

Robert in Washington writes: "What's wrong with the Ten Commandments that upsets people so much? I would put the Ten Commandments in front of every government establishment. And if you have a problem with it, don't look at it."

Victor in New York writes: "Absolutely not. It's ironic that at this time, while the United States is trying to get other nations to move away from religious domination of their governments, there is a movement trying to push us the other way."

Doug in New Jersey writes: "As a Christian, it's my duty to have the commandments in my heart. Posting them in the courthouse, town hall or toll plaza simply will not enhance their sanctity."

Chris in Maryland writes: "The Ten Commandments are good things by which to live. But since they are from a Bible, they should not be on any government's door step. If you post the commandments, why not post the five pillars of Islam, scriptures from Hinduism and Confucian quotes?

And Sean in Virginia: "Displaying the Ten Commandments on state property is an act of hypocrisy. Those who push this are usually the ones who pay the least attention to what the commandments say."

HEMMER: A question of church and state. Thank you, Jack.

O'BRIEN: I wonder if it's found unconstitutional, what do they do with all of the government buildings?

ANDY SERWER, "FORTUNE" MAGAZINE: Get the jackhammers out.

O'BRIEN: Yes, kind of.

CAFFERTY: I suppose.

SERWER: Yes, I mean...

CAFFERTY: I don't know.

O'BRIEN: We'll have to see. All right, Jack, thanks.

Former WorldCom chief Bernie Ebbers takes the witness stand for a second day. Andy Serwer is "Minding Your Business." I like the strategy here.

SERWER: Yes. Well, you just keep saying I don't know. I don't know. I didn't know. I didn't know.

O'BRIEN: I'm confused.

SERWER: Yes, I'm confused. And that's what Bernie Ebbers did yesterday. This is our daily trial update. Bernie Ebbers yesterday sparring with government prosecutors, saying he didn't know.

He was somewhat argumentative, and this may not play in his favor, of course. A couple of jurors slept, according to news reports.

One kind of funny exchange. The government prosecutor asked him about a particular document. He goes, you know, I probably threw that in the trash.

Tough to handicap how this is going to go. He's going to be on the stand again today, and it probably is going to go to the jury tomorrow. Another trial to keep you up-to-date with, Richard Scrushy from HealthSouth down in Alabama. Here's what's going on with him. A subordinate testified yesterday that Scrushy said the reason they should keep the fraud going was because Scrushy was scared of getting sued by shareholders. If we don't keep the fraud going, we're going to get sued.

But, Richard, if you keep the fraud going, you're going to get sued. See, these guys box themselves in.

O'BRIEN: Between a rock and a hard place.

SERWER: Yes, that's what happened to Mr. Scrushy. And it will be interesting, you know, he may take the stand too. And that would be really -- you know, how I love that one. It will be good stuff.

CAFFERTY: Oh, yes, he's a whack job...

SERWER: Well...

CAFFERTY: ... of the first order.

SERWER: An interesting man, yes.

CAFFERTY: Whack job.

O'BRIEN: Thank you for that.

SERWER: Yes.

O'BRIEN: Thank you for that trial update.

SERWER: You're welcome.

O'BRIEN: Well, one TV network turns the theater of the absurd into a new TV series. Are you ready to invite Michael Jackson into your living room every night? "90-Second Pop" is up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: We're going to be playing a lot of Michael Jackson, I fear, for the next few months. Welcome, everybody. It's time for "90-Second Pop" on a Wednesday.

Our pop panel this morning, Andy Borowitz from Borowitzreport.com. Amy Barnett with "Teen People." And Toure, CNN's pop culture correspondent.

Good morning.

TOURE, CNN POP CULTURE CORRESPONDENT: You look so hot today, I don't think I can even pay attention.

O'BRIEN: Forget the segment. Let's just talk about me. No, I'm joking. Let's talk a little bit about this new show, program, thing on E!

TOURE: Snore-fest.

AMY BARNETT, "TEEN PEOPLE" MAGAZINE: Right, exactly.

O'BRIEN: Snore-fest, I think it's fair to call it. Let's show everybody what we're talking about. They basically are reenacting the trial, which I thought would be kind of exciting. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: She claimed that she was the victim and her children were the victim of battery, false imprisonment and infliction of emotional distress. This was in July of 1999. Almost a year later, she amended that complaint to add sexual assault by a security officer.

(END VIDEO CLIP)

O'BRIEN: Oh, my god, that was only 10 seconds of the trial.

ANDY BOROWITZ, BOROWITZREPORT.COM: Yes.

(CROSSTALK)

O'BRIEN: I'm, like, falling asleep in my chair.

BOROWITZ: Instead of "Man in the Mirror" we should have played "Bad." This is, like, what is this? This is like blurring the line between news and karaoke. I mean, this is just unbelievable.

BARNETT: It's American pop culture goes Vegas. That's what it is.

TOURE: Right, right, right.

O'BRIEN: So, they're reenacting the trial. The guy who looks like -- who is supposed to look like Michael Jackson, not so much.

BOROWITZ: No.

BARNETT: How much is he getting paid? Because he's not going to testify, so all he's going to do this entire reenactment is just sit there and look very pensive.

BOROWITZ: My prediction is the No. 1 Halloween outfit this year is going to be Mesereau. A Mesereau wig.

O'BRIEN: I think...

BOROWITZ: It's going to be awesome, though. The...

O'BRIEN: He looks good.

BOROWITZ: Yes.

O'BRIEN: He looks a lot like Mesereau.

TOURE: It's like we're back O.J.-land, right?

BOROWITZ: Right.

TOURE: It's a multimedia Greek tragedy, replayed here, and the smoking gun giving you blow by blow, and...

O'BRIEN: Didn't you think it was going to be more exciting, though?

TOURE: No, this couldn't be more boring.

O'BRIEN: I was like...

BARNETT: Yes, I think so.

BOROWITZ: This is, I think, evidence of why people try so hard to get out of jury duty. I mean, this is like torture.

O'BRIEN: I actually started feeling sorry for people like Jeff Toobin, who are in the courtroom now. Poor Jeff. He must be so bored if this is really how it is.

BOROWITZ: No, no, that is a Jeff Toobin look-alike. It looks a like a lot like him. They nailed him, I thought.

O'BRIEN: All right. Let's talk about my favorite topic, rappers and rapper wars.

BOROWITZ: Rapper wars.

O'BRIEN: Why not? OK. The Game, huge debut, big deal, protege of 50 Cent.

BOROWITZ: Right.

O'BRIEN: They were friends.

BARNETT: It was very...

O'BRIEN: Now they're not friends.

BOROWITZ: Right.

O'BRIEN: And now, like, gunshots going each and every -- what?

TOURE: Do you know...

O'BRIEN: Didn't I sum it up well, kind of?

TOURE: Do you know the phrase...

BOROWITZ: Totally, and you got the fitty (ph) pronunciation.

TOURE: Do you what we mean when we say "my people?" "My people?" Like, oh, god, what are you guys doing? But it's like we have this marketing tool now as getting shot or getting shot at, right?

O'BRIEN: Well, for a rapper, it's a good tool.

TOURE: Yes, like, 50 Cent got shot at when his album first came out and then, like, not get again until then album was almost done. Now, his album comes out again tomorrow.

O'BRIEN: There's a downside to that marketing strategy.

TOURE: Exactly, if you get hit with a bullet.

O'BRIEN: If you get hit, you could die.

BOROWITZ: You know, the one part -- Toure, maybe you can explain to me -- the part of the story that confuses me is I guess this all got started because 50 Cent -- fitty (ph) Cent, I'm sorry -- threatened to kick The Game out of the G-Unit.

O'BRIEN: He did, his label.

BOROWITZ: OK. And then here's what I don't get. What are the advantages of being in the G-Unit? Is there dental? I mean, are there benefits?

(CROSSTALK)

BARNETT: The rap wars are so 1990.

O'BRIEN: It's like 1988.

BARNETT: They're so...

BOROWITZ: We're so over the rap wars.

BARNETT: Aren't you, though? I mean, we're so over them.

TOURE: I know. It happened at Hot 97. Nothing good happens at Hot 97 these days, right? Which also is the focus of the Lil' Kim shootout, right?

BOROWITZ: Right.

TOURE: Well, she's now on trial for lying to the grand jury for a shootout with, I kid you not, a rap group known as CNN.

BOROWITZ: Oh, really?

TOURE: Tony Noriega (ph) of CNN.

O'BRIEN: Nobody we know in that, right?

TOURE: Nobody we know. They're not related to us.

O'BRIEN: Whew! BARNETT: (UNINTELLIGIBLE) rappers over there?

O'BRIEN: I just don't want any, you know, gunshots flying here because we got the rap wars going on.

BARNETT: I'm wearing a vest, so I'm OK.

BOROWITZ: And, there's also this rapper now named Lou Dobbs. Did you know that?

TOURE: No, but Wolf Blitzer is a great rap name.

BOROWITZ: That is true.

O'BRIEN: And on that, we're going to leave it there. You guys, as always, thank you.

Bill -- back to you.

HEMMER: I'm thinking Hemmer-time.

(LAUGHTER)

HEMMER: Thank you. See you later.

Top stories in a moment here. Also this developing story out of Spain today. Investigators may have found a link between the Madrid train bombings a year ago and New York's Grand Central Station. We'll look at that from overseas in a moment as we continue after this.

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