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American Morning
Gas Hikes: No End in Sight; Two Years At War
Aired March 18, 2005 - 07:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody. It's just about half past the hour on this AMERICAN MORNING. Bill Hemmer has got the day off, but Rob Marciano is helping us out and filling in for Bill today.
So a big thank you to you. Appreciate it.
ROB MARCIANO, CNN METEOROLOGIST: Good times. Good times.
O'BRIEN: Well, prices for gasoline, they are skyrocketing around the country. But what are you really paying for at the pump? We're going to break down the costs this morning.
MARCIANO: Also, a milestone in the Iraq war, the two-year anniversary of the shock and awe campaign. CNN's Nic Robertson, in Baghdad as the bombs fell, is here in the studio this morning to talk about life in Iraq two years later.
O'BRIEN: Before we get to that, though, let's get right to the headlines.
Carol Costello, good morning to you.
MARCIANO: Hi, Carol.
CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to you, Rob. Good morning to all of you.
"Now in the News."
The man described as a person of interest in the case of a missing Florida girl is expected to be in court today. John Couey faces unrelated charges. He was picked up by authorities in Augusta, Georgia. Jessica Lunsford was reported missing from her home more than three weeks ago. Her father says he'll continue with the search for his daughter and is trying to keep a positive outlook.
(BEGIN VIDEO CLIP)
MARK LUNSFORD, FATHER OF JESSICA: And my daughter, I don't have any choice but to keep going. You know, I just -- I just keep going.
(END VIDEO CLIP)
COSTELLO: It's not clear if Couey has any connection to Jessica's disappearance. President Bush is back on the road with his campaign for overhauling Social Security. The president took off for Pensacola and Orlando, Florida, just a short time ago. This is from Andrews Air Force Base. It's his second visit to the Sunshine State in just over a month. It's all part of a 60-day Social Security brainstorming tour.
And Major League Baseball is getting some heat from Congress. A House panel criticized the sport for its inability to police the use of steroids. Among those who testified, former and current all-stars and the baseball commissioner, and a father who believes his son's suicide was directly related to the use of steroids.
(BEGIN VIDEO CLIP)
DONALD HOOTON, FATHER OF TAYLOR HOOTON: You are cowards when it comes to facing your fans and our children. Why don't you behave like we try to teach our kids to behave? Show our kids that you're man enough to face authority, tell the truth, and face the consequences.
(END VIDEO CLIP)
COSTELLO: So much more to talk about on this. We'll have much more on this congressional hearing. Our CNN senior analyst, Jeff Greenfield, will join us in the next hour -- Rob.
MARCIANO: Record prices at the pump are taking a bite out of America's pocketbooks. And with crude oil prices jumping past $57 a barrel at one point this week, there's no end in sight. The American Automobile Association says the national average for a gallon of self- serve gas has soared to a record $2.06. Prices are highest in California, averaging $2.33 a gallon. New Jersey has the lowest gas prices at $1.89 a gallon.
Joining us to explain what's going on is Denton Cinquegrana, markets editor for the Oil Price Information Service.
Good morning, Denton.
DENTON CINQUEGRANA, OIL PRICE INFORMATION SERVICE: Good morning, Rob. How are you?
MARCIANO: I'm doing OK, but I'm paying more at the pump, which doesn't make me happy, like a lot of Americans. We talked about crude oil prices. They're up. I mean, I don't even know how many gallons are in a barrel or what that means for gas. I assume they're connected.
CINQUEGRANA: They are connected. Basically, you put the crude oil into a refinery and out comes gasoline, diesel fuel, jet fuel and a couple of other refined products. But gasoline is obviously the most important to the American public.
And right now, oil prices are running up. And this is around the time of year that we start to see our run-up as we make our way to the spring and summer driving season. Prices usually peak out around Memorial Day weekend and then start to kind of trickle down from there and hit fits and starts back through the fall.
MARCIANO: Everyone who lives in this area knows that if you're going to be on the turnpike in Jersey, you pull over and get some gas. It's the cheapest gas in Jersey.
CINQUEGRANA: It is.
MARCIANO: It's the most expensive in California.
CINQUEGRANA: Right.
MARCIANO: Explain how it works.
CINQUEGRANA: Well, in California, they have a very special blend of gasoline. Basically, their gasoline is some of the cleanest- burning in the world, because of tighter air regulations there versus some other places in the country. They need to have less air pollutants in it. And their summertime gasoline, they start using that starting in February, where the weather here allows for winter gasoline to be used a little later.
MARCIANO: Take a look at this graphic we have. It kind of breaks down what we pay in taxes, the distribution in marketing. Give us a rundown and maybe compare that to other countries. We're getting off kind of cheap, aren't we?
CINQUEGRANA: Retail-wise, yes. Wholesale-wise, U.S. prices for wholesale products are among the highest in the world. And that's why we're attracting so many imports. Right now, we're importing about a million barrels a day of gasoline, not just finished gasoline but components that make up gasoline.
MARCIANO: That was California. You mentioned higher price there. Now let's look at the breakdown for Jersey. Taxes, lower. Distribution, lower. Why is it cheaper in Jersey?
CINQUEGRANA: Well, basically, we're, as you know, right on the coast here. And a lot of components -- finished gasoline components that make up gasoline can come very easily into the New York Harbor, into Delaware River and the Philadelphia area. So, basically this is just a landing point for everything. And because of winter gasoline, it was a little bit easier to make and a little bit cheaper, we're reaping the benefits of that right now.
MARCIANO: I never knew there were two types of gas. That explains lot. Like, there's two types of oil for winter and for other parts of the season. Oil. I mean, the oil companies make a ton of money when the price of oil goes up. Does that trickle down to the individual gas station owners?
CINQUEGRANA: When price goes up as fast as they have, the guy you're buying your gasoline from at the gas station, he's not making as much on margin. He's making maybe 5 to 10 cents at best at a time like this. It's when prices start to come down on the wholesale level is when he'll kind of make that up and see a little bit better of a margin. MARCIANO: The oil companies are not paying out big dividends. They don't seem to believe that prices are going to stay this high. What is your take? What are you hearing on the street?
CINQUEGRANA: Well, we're probably going to expect to see prices continue to move up. We're thinking the average peak could be around $2.25 for the entire country. And I think this summer is where the American motorists might get their threshold pushed and say, all right, I'm changing my driving patterns. I'm trading in my SUV for something that's a little more fuel-efficient.
MARCIANO: The Pria is getting more and more popular.
CINQUEGRANA: Exactly.
MARCIANO: Denton Cinquegrana, thank you for your oil insight this morning.
CINQUEGRANA: My pleasure.
MARCIANO: Soledad -- back to you.
O'BRIEN: Let's take a check of the weather this morning.
(WEATHER REPORT)
O'BRIEN: Well, it was two years ago tomorrow, the start of the Iraq war. And you may recall CNN reporting live from the battle zone.
(BEGIN VIDEO CLIP)
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: The anti- aircraft are going in the city are now picking up. Oh, a huge flash. Huge, huge, huge explosion. Get away from the window. Get away from the window. Get away from the window.
(END VIDEO CLIP)
O'BRIEN: That voice, that of CNN senior international correspondent Nic Robertson, reporting as the U.S.-led coalition launched the attack on Baghdad. Nic and his team were forced to leave Iraq for Jordan soon after. They returned, though, weeks later, and they have covered the story ever since.
Nic Robertson joins us here in the studio, a real pleasure, because, of course, we rarely get to see you face to face. You're always in Baghdad. And in addition to that, it's nice to have you not wearing a flak jacket, but a suit and tie this morning.
First, give me a look back about the violence. How have things changed in Iraq a year ago to now?
ROBERTSON: Really, a year ago, the insurgency was beginning to build up. It wasn't as bad, if you will, as it is now. In Iraq now, there perhaps may be 60 to 70 attacks across the country, from roadside bombs to suicide car bombs to just gunfire attacks, rocket attacks.
But, you know, the real difference is that we're beginning to see Iraqi people move on with their lives. Inasmuch as they put the violence to one side and say, OK, yes, we're going to get involved in our sports, whatever it is, bodybuilding, for example, as we covered recently. There is a level of acceptance that this violence is going on, but so are their lives.
O'BRIEN: They were frustrated. We've seen many reports about the lack of gas, the lack of some of the daily items they needed. But when it comes to the violence, do they feel hopeful that it's going to be resolved? Or have they just sort of come to terms with this is the way it's going to be?
ROBERTSON: I think they've come to terms with it. You find this in any war situation that people will get used to the environment that they're in. They recognize that there are places that are going to be dangerous, perhaps outside some of the recruitment stations, perhaps around government offices. But a lot of places they can probably go with a degree of safety.
They worry about the kidnappings. People still kidnap, perhaps a successful businessman in Iraq, because they can make money from his family.
But by and large, people are putting the violence to one side, just because they know they have to. They know that they have to continue with their lives.
And the real key point for them was the insurgents said there was going to be so much violence for the elections at the end of January. And there was violence, but it wasn't on the scale that people were fearing. And for that reason, people have said, OK, there's light at the end of the tunnel. We can see it's not going to be that bad.
O'BRIEN: So, you're getting a palpable sense of hope, then, among the people because of the National Assembly finally meeting, because of the elections going off, not with no violence, but with less than predicted.
ROBERTSON: Absolutely. And they're seeing on television the Iraqi government is beginning to address the concerns of people. They're putting these programs on about the insurgents, about how good the police force is, about recruiting for the police.
And, really, it's very, very simple. The Iraqi people were really sort of living in an information vacuum. Rumors abounded. Who was responsible? Why is all this violence happening in our country? It can't be Iraqis doing it. It must be people from outside. And now, they're getting some answers, and, you know, it gives them something to believe in.
O'BRIEN: What about your own work? Has it gotten significantly more dangerous for yourself and for other journalists who are covering the story? ROBERTSON: I think there was really a watershed last summer, where we -- until that moment, we'd really been able to travel around the country, taking a lot of precautions. But we were still able to do it. And I think really it was at the end of last summer, there was a real increase in the kidnappings of westerners. And that really sent a strong message to journalists, because journalists were also targeted for kidnappings. That it just wasn't as safe as it used to be.
So, I would say from the fall of last year, we take a lot more precautions. We're more cautious. But we still can get out to do our jobs. We just take those steps. We watch where we're going. We watch where we're going to meet and who we're going to meet. But it's possible.
And it's great, because we are finding interesting stories. We are finding the stories about the cartoonist. We are finding stories, you know, about the bodybuilding championship, the things that are going on in people's everyday lives. And that's fascinating, and that's a great bit of journalism, getting out and meeting people.
O'BRIEN: And you've been doing an amazing job, I have to say. We're going to ask you to stick around and talk to us a little bit later this morning about some of your experiences while covering the war. Nic Robertson for us this morning. Nic will be back, in fact, in our final hour at 9:00 a.m. Eastern Time.
He's also going to talk about the time he crawled into Saddam Hussein's spider hole. Remember these shots? That was back in December of 2003. Fascinating perspective is just ahead -- Rob.
MARCIANO: Soledad, is your identity at risk? Well, another big computer database has been hacked. Andy Serwer tells us who should be checking their bank accounts.
Also, the legal issues around the Terri Schiavo case haven't been settled, but the political issues are running hot. More on that.
And Lil' Kim could be heading for the big house. Our "90-Second Pop" crew on what she said and why prosecutors think it's so bad. Stay with us. AMERICAN MORNING continues in a moment.
(COMMERCIAL BREAK)
O'BRIEN: Don't forget about "IN THE MONEY." This week, America's shopping obsession. Saturday at 1:00 p.m., Sunday at 3:00 p.m. Jack has the weekend off. That's nice.
MARCIANO: And let's check in with Jack for the "Question of the Day."
JACK CAFFERTY, CNN ANCHOR: Thank you, Rob.
On the day that Terri Schiavo's feeding tubes -- what did you say, Ted? Oh. Let me just start over here. On the day that Terri Schiavo's feeding tubes are to be removed, the House Committee on Government Reform has issued a last-minute subpoena to Schiavo's doctors, ordering them not to remove the tubes. They have also passed legislation granting federal courts the power to review decisions by Florida state courts. State courts are about things like states' rights. Florida has repeatedly said Terri Schiavo would not want to live in a persistent vegetative state.
The question is this: Does the federal government have the right to intervene in the case in the case of Terri Schiavo?
Jay in Virginia writes: "This whole situation is appalling. Terri's husband would be the most likely person to know her wishes. The woman should be allowed to die with dignity."
John in Florida writes: "No. Congress can't solve Social Security, Medicaid or our porous borders, but these morons want to usurp the role of the judiciary. Next thing you know, they'll get involved in baseball and steroids."
Kate in Florida writes: "Why is the government even involved in this case? It should be strictly a family issue."
Eugene in Florida: "As a parent, this is tough. I feel for the family pain. However, stop the madness. If not for the case being in Florida, where Jeb Bush is thinking about a political run for president, this case would have been over by now."
And D.W. in Crescent City writes: "No, it does not. I realize that my body, beautiful though it is right now, will one day be dead. So I've written a living will, which I hope will protect it from the grasping hands of relatives, politicians, surgeons and taxidermists."
O'BRIEN: Taxidermist?
MARCIANO: That's a nice little segment. You get a sense that, I mean, a lot of these congressional hearings, the steroid case, I mean, these politicians are just kind of grandstanding. It's free airtime for them.
CAFFERTY: Well, there's also a fundamental argument about, if state courts rule on something that applies to state law, where does the Congress suddenly get off saying, well, we have the right to kick this up to a federal judiciary? There are two judiciaries in the country for a reason. There are state courts, and there are federal courts, and they don't do the same things, except when it's convenient for people who have a political agenda, which I think might be the case here.
O'BRIEN: Is the issue that they could subpoena her, Terri Schiavo herself, which would then, of course, protect her from the doctors? Is that what the...
ANDY SERWER, "FORTUNE" MAGAZINE: Oh, that's an interesting wrinkle.
O'BRIEN: That's sort of what's been floated.
CAFFERTY: Well, there are...
O'BRIEN: If she, in fact, is the person who is being subpoenaed.
SERWER: Right.
CAFFERTY: Yes, there are -- I mean, there issues that go back seven years, which is how long this woman has been in the state that she is in. And the issue we're trying to get at this morning isn't whether she should live or die, but whether or not federal courts have the right to suddenly review decisions that are made at the state level. And I don't know what the answer to that is. I mean, I tend to think the federal government might have enough to do, but apparently...
MARCIANO: They should...
SERWER: They have baseball again. I mean...
CAFFERTY: Well, yes, yes.
SERWER: ... they have got important things to do a.
O'BRIEN: It's a great question.
CAFFERTY: Right.
O'BRIEN: Thanks, Jack.
Well, thousands of Boston College grads were warned about possible identity theft. Tat story and a stock market preview this morning from Andy Serwer. He's "Minding Your Business."
Good morning.
SERWER: Good morning, Soledad.
Kind of a mixed picture on Wall Street again. It's all about oil on Wall Street these days. You can see here, the Dow took a little bit. The Nasdaq and S&P up. Oil hit a record high of $57.60 yesterday. A couple of media stocks continue to rise, Viacom and Time Warner. Breakup fever is the word there.
Now, a mixed bag yesterday for alumni of Boston College. First of all, the good news. On the hardwood, NCAA tournament, the Boston College Eagles thumped the University of Pennsylvania Quakers. Jared Dudley (ph) led the Eagles with 18 points.
On the negative side, though, Boston College officials warned 120,000 alumni that information may have been stolen from a university computer. Again, another case of identity theft. Hackers broke in to the university's computer and compromised the files of 120 alumni. Social Security and address -- Social Security numbers and addresses were possibly accessed. And they sent letters out.
O'BRIEN: They said 120, but you meant 120,000, right?
SERWER: One hundred twenty thousand, excuse me, yes, that's right.
O'BRIEN: Wow!
SERWER: And who knew that the NCAA tournament and identity theft were connected stories? But we see that they are.
MARCIANO: Nice work.
SERWER: Yes.
O'BRIEN: All right, thanks, Andy.
SERWER: You're welcome.
O'BRIEN: Well, here's a question for you. Is "The Ring 2" as scary as the original? Should you be covering your eyes in the movies this weekend, or just saving your money? We've got a preview coming up in "90-Second Pop" just ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
O'BRIEN: Welcome, everybody. It's time for "90-Second Pop" on a Friday with our all-star pop panel. Amy Barnett is managing editor of "Teen People." B.J. Sigesmund is staff editor for "Us Weekly." Jessica Kline is a comedian from VH1's "Best Week Ever."
Good morning.
B.J. SIGESMUND, STAFF EDITOR, "US WEEKLY": Good morning.
JESSI KLEIN, COMEDIAN: Good morning.
O'BRIEN: Nice to have you for your very first time. Welcome, welcome, welcome.
AMY BARNETT, MANAGING EDITOR, "TEEN PEOPLE: Thank you.
O'BRIEN: Let's start with Lil' Kim.
SIGESMUND: Lil' Kim, big trouble.
O'BRIEN: Big trouble for that little girl. She's a tiny, little thing, but she faces some bid old time in the big house.
SIGESMUND: Yes. No, she was convicted yesterday of both perjury and conspiracy, and she was acquitted of the more serious charge, which was conspiracy -- I'm sorry.
O'BRIEN: Obstruction of justice.
UNIDENTIFIED FEMALE: Right, right.
SIGESMUND: Obstruction of justice.
UNIDENTIFIED FEMALE: That's a bad one. SIGESMUND: This all stems from the 2000 shootout, where some of her entourage were in battle with another entourage over a rival rapper.
O'BRIEN: She was just trying to protect her folks.
SIGESMUND: Yes. And then...
UNIDENTIFIED FEMALE: She was trying to be a good person.
SIGESMUND: Right. In 2003 facing...
O'BRIEN: By lying to the hood.
SIGESMUND: So...
UNIDENTIFIED FEMALE: She's trying to be nice girl.
SIGESMUND: But the core issues that in 2003 when she was talking about what happened in 2001, she apparently lied several times, trying to protect people in her posse. She said that two men weren't there, and then the jury saw on videotape that they were there.
O'BRIEN: Lying when they have it on tape. Just as a rule, bad idea.
BARNETT: Don't you think that she should go to jail? Because now it's like the judge is supposed to be lenient if she show remorse.
O'BRIEN: How much time is she facing?
BARNETT: Well, she could get up to 20 years.
SIGESMUND: Twenty years?
BARNETT: But I'm, like, she should just go to jail. She could make a fortune in jail. I mean, the street cred (ph), it could boost her flagging CD sales. She could do a video game, where you, like, have to bust Lil' Kim out of jail.
SIGESMUND: And what would she wear? What would she wear in jail?
BARNETT: It's what she wears when she comes out. She could, like, wear hand-knit pasties or something, you know, and, like, become a martyr, lose a bunch of weight.
KLEIN: I think that Lil' Kim is too small to go to jail. I mean, she is 4'11". She is very tiny. What if she meets up with some sort of, like, tough, hardened Martha Stewart type of person?
SIGESMUND: Oh, she's already...
(CROSSTALK)
KLEIN: I worry about her. BARNETT: Oh, please!
KLEIN: She's a delicate flower.
O'BRIEN: You might be the only one who thinks so.
OK. I want to talk about a little bit about "The Ring 2," because I really liked "The Ring," the first one with Naomi Watts, who I thought was terrific. It was really scary. And as a rule I don't like scary movies. But this was a good one. You've seen it. How is No. 2?
BARNETT: I mean, you know, the plotline of having a movie -- watching a movie where you're watching a movie that could possibly kill you was just so incredibly creepy the first time around. But they didn't do anything new and exciting the second time.
O'BRIEN: I don't hear the words, "I loved it, Soledad."
SIGESMUND: Yes, yes.
BARNETT: No, it was a classic case of box office greed, where, like, you know, I made five bucks with "Rocky 4," so I'm going to see if I can make three bucks with "Rocky 5," you know?
SIGESMUND: Yes. I agree. I have seen it, too. The first one was all about the notion that this videotape could kill you, right? And the second one is just about this demon child, Semara (ph), who comes back to haunt Naomi Watts Freddy Krueger-style, you know, in dreams, out of dreams. But there is nothing as clever about it as the first one. Still, I think it's going to make more money than the first one.
KLEIN: I can't even -- I'll just put in a vote. It looks scary to me, because I can't even watch the commercial. I'm terrified of it. And literally, in my house when it comes in, I have to turn to something else. CNN usually
BARNETT: Well, I hope I don't mess up anybody's, you know, sort of movie-watching experience. But the creepiest thing is this, you know, the ring part, is killer reindeer.
SIGESMUND: Absolutely. That's the best scene of all.
(CROSSTALK)
BARNETT: It's the best scene. But killer reindeer is the best scene.
O'BRIEN: I still don't hear that you love it.
BARNETT: That should tell you something.
SIGESMUND: No, I did not love it.
O'BRIEN: All right, I'm looking forward to this. First of all, I love John Stamos. I think he's a nice...
BARNETT: Who doesn't?
O'BRIEN: He's cute. He seems nice. He's a good actor.
KLEIN: Poor man's George Clooney.
O'BRIEN: True. And he also -- he's had that breakup, and he's been a real gentleman about it. He's got a new show.
KLEIN: That's right. "Jake in Progress." There were, I guess, four episodes on last night. ABC is just serving it up. You know, I took a look at the show. Obviously when you see John Stamos, you think "Full House." So the comparison to me is there are no Olsen twins in this, which is a plus. I do miss the razor wit of Bob Saget (ph), so that's tough.
For me, though, I think that the whole premise of the show is little unbelievable. It's basically about this hot, you know, wealthy, successful guy, who has been a womanizer and now decides he wants, like, a steady girlfriend. In real life in New York, that would take about two minutes for this guy. They're going to have a whole season of him looking for a girlfriend? I don't think so.
SIGESMUND: Well, also, I found the show is about a celebrity publicist, and it's about the inner workings of the way the media works. Those kinds of shows never, ever work.
O'BRIEN: Why not?
SIGESMUND: They're just too inside baseball. And I feel like America doesn't really care about the underbelly of celebrity journalism and the way it works. I think that they're not going to pay as much attention.
UNIDENTIFIED FEMALE: John Stamos is cute. He's cute.
O'BRIEN: I was going to bring it back to, hi, he's cute, and we're all going to watch because he's hot.
(CROSSTALK)
BARNETT: I think this show is kind of good. It's like dating for dummies for metro-sexual guy. You know, I think everybody likes that.
O'BRIEN: They could have called it that, but they didn't. You guys, we're out of time. As always, I thank you very much.
Let's go back to Rob.
MARCIANO: Thanks, Soledad.
In a moment, today's top stories, including the congressional steroid investigation, and fans may not be feeling the same way about Mark McGwire after his testimony. Stay with us. That, plus a whole lot more on AMERICAN MORNING.
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Aired March 18, 2005 - 07:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody. It's just about half past the hour on this AMERICAN MORNING. Bill Hemmer has got the day off, but Rob Marciano is helping us out and filling in for Bill today.
So a big thank you to you. Appreciate it.
ROB MARCIANO, CNN METEOROLOGIST: Good times. Good times.
O'BRIEN: Well, prices for gasoline, they are skyrocketing around the country. But what are you really paying for at the pump? We're going to break down the costs this morning.
MARCIANO: Also, a milestone in the Iraq war, the two-year anniversary of the shock and awe campaign. CNN's Nic Robertson, in Baghdad as the bombs fell, is here in the studio this morning to talk about life in Iraq two years later.
O'BRIEN: Before we get to that, though, let's get right to the headlines.
Carol Costello, good morning to you.
MARCIANO: Hi, Carol.
CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to you, Rob. Good morning to all of you.
"Now in the News."
The man described as a person of interest in the case of a missing Florida girl is expected to be in court today. John Couey faces unrelated charges. He was picked up by authorities in Augusta, Georgia. Jessica Lunsford was reported missing from her home more than three weeks ago. Her father says he'll continue with the search for his daughter and is trying to keep a positive outlook.
(BEGIN VIDEO CLIP)
MARK LUNSFORD, FATHER OF JESSICA: And my daughter, I don't have any choice but to keep going. You know, I just -- I just keep going.
(END VIDEO CLIP)
COSTELLO: It's not clear if Couey has any connection to Jessica's disappearance. President Bush is back on the road with his campaign for overhauling Social Security. The president took off for Pensacola and Orlando, Florida, just a short time ago. This is from Andrews Air Force Base. It's his second visit to the Sunshine State in just over a month. It's all part of a 60-day Social Security brainstorming tour.
And Major League Baseball is getting some heat from Congress. A House panel criticized the sport for its inability to police the use of steroids. Among those who testified, former and current all-stars and the baseball commissioner, and a father who believes his son's suicide was directly related to the use of steroids.
(BEGIN VIDEO CLIP)
DONALD HOOTON, FATHER OF TAYLOR HOOTON: You are cowards when it comes to facing your fans and our children. Why don't you behave like we try to teach our kids to behave? Show our kids that you're man enough to face authority, tell the truth, and face the consequences.
(END VIDEO CLIP)
COSTELLO: So much more to talk about on this. We'll have much more on this congressional hearing. Our CNN senior analyst, Jeff Greenfield, will join us in the next hour -- Rob.
MARCIANO: Record prices at the pump are taking a bite out of America's pocketbooks. And with crude oil prices jumping past $57 a barrel at one point this week, there's no end in sight. The American Automobile Association says the national average for a gallon of self- serve gas has soared to a record $2.06. Prices are highest in California, averaging $2.33 a gallon. New Jersey has the lowest gas prices at $1.89 a gallon.
Joining us to explain what's going on is Denton Cinquegrana, markets editor for the Oil Price Information Service.
Good morning, Denton.
DENTON CINQUEGRANA, OIL PRICE INFORMATION SERVICE: Good morning, Rob. How are you?
MARCIANO: I'm doing OK, but I'm paying more at the pump, which doesn't make me happy, like a lot of Americans. We talked about crude oil prices. They're up. I mean, I don't even know how many gallons are in a barrel or what that means for gas. I assume they're connected.
CINQUEGRANA: They are connected. Basically, you put the crude oil into a refinery and out comes gasoline, diesel fuel, jet fuel and a couple of other refined products. But gasoline is obviously the most important to the American public.
And right now, oil prices are running up. And this is around the time of year that we start to see our run-up as we make our way to the spring and summer driving season. Prices usually peak out around Memorial Day weekend and then start to kind of trickle down from there and hit fits and starts back through the fall.
MARCIANO: Everyone who lives in this area knows that if you're going to be on the turnpike in Jersey, you pull over and get some gas. It's the cheapest gas in Jersey.
CINQUEGRANA: It is.
MARCIANO: It's the most expensive in California.
CINQUEGRANA: Right.
MARCIANO: Explain how it works.
CINQUEGRANA: Well, in California, they have a very special blend of gasoline. Basically, their gasoline is some of the cleanest- burning in the world, because of tighter air regulations there versus some other places in the country. They need to have less air pollutants in it. And their summertime gasoline, they start using that starting in February, where the weather here allows for winter gasoline to be used a little later.
MARCIANO: Take a look at this graphic we have. It kind of breaks down what we pay in taxes, the distribution in marketing. Give us a rundown and maybe compare that to other countries. We're getting off kind of cheap, aren't we?
CINQUEGRANA: Retail-wise, yes. Wholesale-wise, U.S. prices for wholesale products are among the highest in the world. And that's why we're attracting so many imports. Right now, we're importing about a million barrels a day of gasoline, not just finished gasoline but components that make up gasoline.
MARCIANO: That was California. You mentioned higher price there. Now let's look at the breakdown for Jersey. Taxes, lower. Distribution, lower. Why is it cheaper in Jersey?
CINQUEGRANA: Well, basically, we're, as you know, right on the coast here. And a lot of components -- finished gasoline components that make up gasoline can come very easily into the New York Harbor, into Delaware River and the Philadelphia area. So, basically this is just a landing point for everything. And because of winter gasoline, it was a little bit easier to make and a little bit cheaper, we're reaping the benefits of that right now.
MARCIANO: I never knew there were two types of gas. That explains lot. Like, there's two types of oil for winter and for other parts of the season. Oil. I mean, the oil companies make a ton of money when the price of oil goes up. Does that trickle down to the individual gas station owners?
CINQUEGRANA: When price goes up as fast as they have, the guy you're buying your gasoline from at the gas station, he's not making as much on margin. He's making maybe 5 to 10 cents at best at a time like this. It's when prices start to come down on the wholesale level is when he'll kind of make that up and see a little bit better of a margin. MARCIANO: The oil companies are not paying out big dividends. They don't seem to believe that prices are going to stay this high. What is your take? What are you hearing on the street?
CINQUEGRANA: Well, we're probably going to expect to see prices continue to move up. We're thinking the average peak could be around $2.25 for the entire country. And I think this summer is where the American motorists might get their threshold pushed and say, all right, I'm changing my driving patterns. I'm trading in my SUV for something that's a little more fuel-efficient.
MARCIANO: The Pria is getting more and more popular.
CINQUEGRANA: Exactly.
MARCIANO: Denton Cinquegrana, thank you for your oil insight this morning.
CINQUEGRANA: My pleasure.
MARCIANO: Soledad -- back to you.
O'BRIEN: Let's take a check of the weather this morning.
(WEATHER REPORT)
O'BRIEN: Well, it was two years ago tomorrow, the start of the Iraq war. And you may recall CNN reporting live from the battle zone.
(BEGIN VIDEO CLIP)
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: The anti- aircraft are going in the city are now picking up. Oh, a huge flash. Huge, huge, huge explosion. Get away from the window. Get away from the window. Get away from the window.
(END VIDEO CLIP)
O'BRIEN: That voice, that of CNN senior international correspondent Nic Robertson, reporting as the U.S.-led coalition launched the attack on Baghdad. Nic and his team were forced to leave Iraq for Jordan soon after. They returned, though, weeks later, and they have covered the story ever since.
Nic Robertson joins us here in the studio, a real pleasure, because, of course, we rarely get to see you face to face. You're always in Baghdad. And in addition to that, it's nice to have you not wearing a flak jacket, but a suit and tie this morning.
First, give me a look back about the violence. How have things changed in Iraq a year ago to now?
ROBERTSON: Really, a year ago, the insurgency was beginning to build up. It wasn't as bad, if you will, as it is now. In Iraq now, there perhaps may be 60 to 70 attacks across the country, from roadside bombs to suicide car bombs to just gunfire attacks, rocket attacks.
But, you know, the real difference is that we're beginning to see Iraqi people move on with their lives. Inasmuch as they put the violence to one side and say, OK, yes, we're going to get involved in our sports, whatever it is, bodybuilding, for example, as we covered recently. There is a level of acceptance that this violence is going on, but so are their lives.
O'BRIEN: They were frustrated. We've seen many reports about the lack of gas, the lack of some of the daily items they needed. But when it comes to the violence, do they feel hopeful that it's going to be resolved? Or have they just sort of come to terms with this is the way it's going to be?
ROBERTSON: I think they've come to terms with it. You find this in any war situation that people will get used to the environment that they're in. They recognize that there are places that are going to be dangerous, perhaps outside some of the recruitment stations, perhaps around government offices. But a lot of places they can probably go with a degree of safety.
They worry about the kidnappings. People still kidnap, perhaps a successful businessman in Iraq, because they can make money from his family.
But by and large, people are putting the violence to one side, just because they know they have to. They know that they have to continue with their lives.
And the real key point for them was the insurgents said there was going to be so much violence for the elections at the end of January. And there was violence, but it wasn't on the scale that people were fearing. And for that reason, people have said, OK, there's light at the end of the tunnel. We can see it's not going to be that bad.
O'BRIEN: So, you're getting a palpable sense of hope, then, among the people because of the National Assembly finally meeting, because of the elections going off, not with no violence, but with less than predicted.
ROBERTSON: Absolutely. And they're seeing on television the Iraqi government is beginning to address the concerns of people. They're putting these programs on about the insurgents, about how good the police force is, about recruiting for the police.
And, really, it's very, very simple. The Iraqi people were really sort of living in an information vacuum. Rumors abounded. Who was responsible? Why is all this violence happening in our country? It can't be Iraqis doing it. It must be people from outside. And now, they're getting some answers, and, you know, it gives them something to believe in.
O'BRIEN: What about your own work? Has it gotten significantly more dangerous for yourself and for other journalists who are covering the story? ROBERTSON: I think there was really a watershed last summer, where we -- until that moment, we'd really been able to travel around the country, taking a lot of precautions. But we were still able to do it. And I think really it was at the end of last summer, there was a real increase in the kidnappings of westerners. And that really sent a strong message to journalists, because journalists were also targeted for kidnappings. That it just wasn't as safe as it used to be.
So, I would say from the fall of last year, we take a lot more precautions. We're more cautious. But we still can get out to do our jobs. We just take those steps. We watch where we're going. We watch where we're going to meet and who we're going to meet. But it's possible.
And it's great, because we are finding interesting stories. We are finding the stories about the cartoonist. We are finding stories, you know, about the bodybuilding championship, the things that are going on in people's everyday lives. And that's fascinating, and that's a great bit of journalism, getting out and meeting people.
O'BRIEN: And you've been doing an amazing job, I have to say. We're going to ask you to stick around and talk to us a little bit later this morning about some of your experiences while covering the war. Nic Robertson for us this morning. Nic will be back, in fact, in our final hour at 9:00 a.m. Eastern Time.
He's also going to talk about the time he crawled into Saddam Hussein's spider hole. Remember these shots? That was back in December of 2003. Fascinating perspective is just ahead -- Rob.
MARCIANO: Soledad, is your identity at risk? Well, another big computer database has been hacked. Andy Serwer tells us who should be checking their bank accounts.
Also, the legal issues around the Terri Schiavo case haven't been settled, but the political issues are running hot. More on that.
And Lil' Kim could be heading for the big house. Our "90-Second Pop" crew on what she said and why prosecutors think it's so bad. Stay with us. AMERICAN MORNING continues in a moment.
(COMMERCIAL BREAK)
O'BRIEN: Don't forget about "IN THE MONEY." This week, America's shopping obsession. Saturday at 1:00 p.m., Sunday at 3:00 p.m. Jack has the weekend off. That's nice.
MARCIANO: And let's check in with Jack for the "Question of the Day."
JACK CAFFERTY, CNN ANCHOR: Thank you, Rob.
On the day that Terri Schiavo's feeding tubes -- what did you say, Ted? Oh. Let me just start over here. On the day that Terri Schiavo's feeding tubes are to be removed, the House Committee on Government Reform has issued a last-minute subpoena to Schiavo's doctors, ordering them not to remove the tubes. They have also passed legislation granting federal courts the power to review decisions by Florida state courts. State courts are about things like states' rights. Florida has repeatedly said Terri Schiavo would not want to live in a persistent vegetative state.
The question is this: Does the federal government have the right to intervene in the case in the case of Terri Schiavo?
Jay in Virginia writes: "This whole situation is appalling. Terri's husband would be the most likely person to know her wishes. The woman should be allowed to die with dignity."
John in Florida writes: "No. Congress can't solve Social Security, Medicaid or our porous borders, but these morons want to usurp the role of the judiciary. Next thing you know, they'll get involved in baseball and steroids."
Kate in Florida writes: "Why is the government even involved in this case? It should be strictly a family issue."
Eugene in Florida: "As a parent, this is tough. I feel for the family pain. However, stop the madness. If not for the case being in Florida, where Jeb Bush is thinking about a political run for president, this case would have been over by now."
And D.W. in Crescent City writes: "No, it does not. I realize that my body, beautiful though it is right now, will one day be dead. So I've written a living will, which I hope will protect it from the grasping hands of relatives, politicians, surgeons and taxidermists."
O'BRIEN: Taxidermist?
MARCIANO: That's a nice little segment. You get a sense that, I mean, a lot of these congressional hearings, the steroid case, I mean, these politicians are just kind of grandstanding. It's free airtime for them.
CAFFERTY: Well, there's also a fundamental argument about, if state courts rule on something that applies to state law, where does the Congress suddenly get off saying, well, we have the right to kick this up to a federal judiciary? There are two judiciaries in the country for a reason. There are state courts, and there are federal courts, and they don't do the same things, except when it's convenient for people who have a political agenda, which I think might be the case here.
O'BRIEN: Is the issue that they could subpoena her, Terri Schiavo herself, which would then, of course, protect her from the doctors? Is that what the...
ANDY SERWER, "FORTUNE" MAGAZINE: Oh, that's an interesting wrinkle.
O'BRIEN: That's sort of what's been floated.
CAFFERTY: Well, there are...
O'BRIEN: If she, in fact, is the person who is being subpoenaed.
SERWER: Right.
CAFFERTY: Yes, there are -- I mean, there issues that go back seven years, which is how long this woman has been in the state that she is in. And the issue we're trying to get at this morning isn't whether she should live or die, but whether or not federal courts have the right to suddenly review decisions that are made at the state level. And I don't know what the answer to that is. I mean, I tend to think the federal government might have enough to do, but apparently...
MARCIANO: They should...
SERWER: They have baseball again. I mean...
CAFFERTY: Well, yes, yes.
SERWER: ... they have got important things to do a.
O'BRIEN: It's a great question.
CAFFERTY: Right.
O'BRIEN: Thanks, Jack.
Well, thousands of Boston College grads were warned about possible identity theft. Tat story and a stock market preview this morning from Andy Serwer. He's "Minding Your Business."
Good morning.
SERWER: Good morning, Soledad.
Kind of a mixed picture on Wall Street again. It's all about oil on Wall Street these days. You can see here, the Dow took a little bit. The Nasdaq and S&P up. Oil hit a record high of $57.60 yesterday. A couple of media stocks continue to rise, Viacom and Time Warner. Breakup fever is the word there.
Now, a mixed bag yesterday for alumni of Boston College. First of all, the good news. On the hardwood, NCAA tournament, the Boston College Eagles thumped the University of Pennsylvania Quakers. Jared Dudley (ph) led the Eagles with 18 points.
On the negative side, though, Boston College officials warned 120,000 alumni that information may have been stolen from a university computer. Again, another case of identity theft. Hackers broke in to the university's computer and compromised the files of 120 alumni. Social Security and address -- Social Security numbers and addresses were possibly accessed. And they sent letters out.
O'BRIEN: They said 120, but you meant 120,000, right?
SERWER: One hundred twenty thousand, excuse me, yes, that's right.
O'BRIEN: Wow!
SERWER: And who knew that the NCAA tournament and identity theft were connected stories? But we see that they are.
MARCIANO: Nice work.
SERWER: Yes.
O'BRIEN: All right, thanks, Andy.
SERWER: You're welcome.
O'BRIEN: Well, here's a question for you. Is "The Ring 2" as scary as the original? Should you be covering your eyes in the movies this weekend, or just saving your money? We've got a preview coming up in "90-Second Pop" just ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
O'BRIEN: Welcome, everybody. It's time for "90-Second Pop" on a Friday with our all-star pop panel. Amy Barnett is managing editor of "Teen People." B.J. Sigesmund is staff editor for "Us Weekly." Jessica Kline is a comedian from VH1's "Best Week Ever."
Good morning.
B.J. SIGESMUND, STAFF EDITOR, "US WEEKLY": Good morning.
JESSI KLEIN, COMEDIAN: Good morning.
O'BRIEN: Nice to have you for your very first time. Welcome, welcome, welcome.
AMY BARNETT, MANAGING EDITOR, "TEEN PEOPLE: Thank you.
O'BRIEN: Let's start with Lil' Kim.
SIGESMUND: Lil' Kim, big trouble.
O'BRIEN: Big trouble for that little girl. She's a tiny, little thing, but she faces some bid old time in the big house.
SIGESMUND: Yes. No, she was convicted yesterday of both perjury and conspiracy, and she was acquitted of the more serious charge, which was conspiracy -- I'm sorry.
O'BRIEN: Obstruction of justice.
UNIDENTIFIED FEMALE: Right, right.
SIGESMUND: Obstruction of justice.
UNIDENTIFIED FEMALE: That's a bad one. SIGESMUND: This all stems from the 2000 shootout, where some of her entourage were in battle with another entourage over a rival rapper.
O'BRIEN: She was just trying to protect her folks.
SIGESMUND: Yes. And then...
UNIDENTIFIED FEMALE: She was trying to be a good person.
SIGESMUND: Right. In 2003 facing...
O'BRIEN: By lying to the hood.
SIGESMUND: So...
UNIDENTIFIED FEMALE: She's trying to be nice girl.
SIGESMUND: But the core issues that in 2003 when she was talking about what happened in 2001, she apparently lied several times, trying to protect people in her posse. She said that two men weren't there, and then the jury saw on videotape that they were there.
O'BRIEN: Lying when they have it on tape. Just as a rule, bad idea.
BARNETT: Don't you think that she should go to jail? Because now it's like the judge is supposed to be lenient if she show remorse.
O'BRIEN: How much time is she facing?
BARNETT: Well, she could get up to 20 years.
SIGESMUND: Twenty years?
BARNETT: But I'm, like, she should just go to jail. She could make a fortune in jail. I mean, the street cred (ph), it could boost her flagging CD sales. She could do a video game, where you, like, have to bust Lil' Kim out of jail.
SIGESMUND: And what would she wear? What would she wear in jail?
BARNETT: It's what she wears when she comes out. She could, like, wear hand-knit pasties or something, you know, and, like, become a martyr, lose a bunch of weight.
KLEIN: I think that Lil' Kim is too small to go to jail. I mean, she is 4'11". She is very tiny. What if she meets up with some sort of, like, tough, hardened Martha Stewart type of person?
SIGESMUND: Oh, she's already...
(CROSSTALK)
KLEIN: I worry about her. BARNETT: Oh, please!
KLEIN: She's a delicate flower.
O'BRIEN: You might be the only one who thinks so.
OK. I want to talk about a little bit about "The Ring 2," because I really liked "The Ring," the first one with Naomi Watts, who I thought was terrific. It was really scary. And as a rule I don't like scary movies. But this was a good one. You've seen it. How is No. 2?
BARNETT: I mean, you know, the plotline of having a movie -- watching a movie where you're watching a movie that could possibly kill you was just so incredibly creepy the first time around. But they didn't do anything new and exciting the second time.
O'BRIEN: I don't hear the words, "I loved it, Soledad."
SIGESMUND: Yes, yes.
BARNETT: No, it was a classic case of box office greed, where, like, you know, I made five bucks with "Rocky 4," so I'm going to see if I can make three bucks with "Rocky 5," you know?
SIGESMUND: Yes. I agree. I have seen it, too. The first one was all about the notion that this videotape could kill you, right? And the second one is just about this demon child, Semara (ph), who comes back to haunt Naomi Watts Freddy Krueger-style, you know, in dreams, out of dreams. But there is nothing as clever about it as the first one. Still, I think it's going to make more money than the first one.
KLEIN: I can't even -- I'll just put in a vote. It looks scary to me, because I can't even watch the commercial. I'm terrified of it. And literally, in my house when it comes in, I have to turn to something else. CNN usually
BARNETT: Well, I hope I don't mess up anybody's, you know, sort of movie-watching experience. But the creepiest thing is this, you know, the ring part, is killer reindeer.
SIGESMUND: Absolutely. That's the best scene of all.
(CROSSTALK)
BARNETT: It's the best scene. But killer reindeer is the best scene.
O'BRIEN: I still don't hear that you love it.
BARNETT: That should tell you something.
SIGESMUND: No, I did not love it.
O'BRIEN: All right, I'm looking forward to this. First of all, I love John Stamos. I think he's a nice...
BARNETT: Who doesn't?
O'BRIEN: He's cute. He seems nice. He's a good actor.
KLEIN: Poor man's George Clooney.
O'BRIEN: True. And he also -- he's had that breakup, and he's been a real gentleman about it. He's got a new show.
KLEIN: That's right. "Jake in Progress." There were, I guess, four episodes on last night. ABC is just serving it up. You know, I took a look at the show. Obviously when you see John Stamos, you think "Full House." So the comparison to me is there are no Olsen twins in this, which is a plus. I do miss the razor wit of Bob Saget (ph), so that's tough.
For me, though, I think that the whole premise of the show is little unbelievable. It's basically about this hot, you know, wealthy, successful guy, who has been a womanizer and now decides he wants, like, a steady girlfriend. In real life in New York, that would take about two minutes for this guy. They're going to have a whole season of him looking for a girlfriend? I don't think so.
SIGESMUND: Well, also, I found the show is about a celebrity publicist, and it's about the inner workings of the way the media works. Those kinds of shows never, ever work.
O'BRIEN: Why not?
SIGESMUND: They're just too inside baseball. And I feel like America doesn't really care about the underbelly of celebrity journalism and the way it works. I think that they're not going to pay as much attention.
UNIDENTIFIED FEMALE: John Stamos is cute. He's cute.
O'BRIEN: I was going to bring it back to, hi, he's cute, and we're all going to watch because he's hot.
(CROSSTALK)
BARNETT: I think this show is kind of good. It's like dating for dummies for metro-sexual guy. You know, I think everybody likes that.
O'BRIEN: They could have called it that, but they didn't. You guys, we're out of time. As always, I thank you very much.
Let's go back to Rob.
MARCIANO: Thanks, Soledad.
In a moment, today's top stories, including the congressional steroid investigation, and fans may not be feeling the same way about Mark McGwire after his testimony. Stay with us. That, plus a whole lot more on AMERICAN MORNING.
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