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CNN Live At Daybreak

Tropical Storm Arlene Nears Cuba; Rainfall in West: Boon or Bust?

Aired June 10, 2005 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


VALERIE MORRIS, CNN CORRESPONDENT: It's Friday, June 10.
And a weekend of severe weather lies ahead for many of you. From Midwest twisters to a tropical storm, you could be in for a big one. These are live pictures now from Haulover Beach in Miami. Take a look at this. Tropical storm Arlene is heading to the Gulf Coast.

And what could a judge's son have to do with the disappearance of that young American woman in Aruba?

Plus, drama outside the Jackson trial as deliberations go into day six.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

MORRIS: Good morning, everyone.

I'm Valerie Morris in for Carol Costello.

More on those top stories in a moment.

Also ahead this hour, the name may be common, but will the movie go beyond the ordinary? Tom O'Neil joins us with his reviews.

An Italian aid worker is in good health after being released from more than three weeks in captivity in Afghanistan. Clementina Cantoni, who works with CARE International, is en route now to Rome.

When it comes to his judicial nominations, President Bush is now five for five. The Senate has confirmed Justice William Pryor for the 11th U.S. Circuit Court of Appeals. Senators also approved two other judges, David McKeague and Richard Griffin.

Australians, well, they have been warned against traveling to Indonesia. The government says it has credible reports that terrorists in Indonesia are in the advanced stages of planning attacks. The reports say hotels catering to Westerners may be targeted.

We're keeping track of some stormy weather out there. You need to watch out for tropical storm Arlene because it is dumping a lot of rain on Cuba right now. But that storm is expected to make landfall somewhere along the northern Gulf Coast late tomorrow.

Forecasters say it will not become a hurricane. Florida residents mindful, though, of last year's devastating hurricanes, are preparing anyway. They are stocking up on supplies. A tropical storm watch has been issued from central Louisiana to the Florida Panhandle.

And take a look at this. This funnel cloud was spotted over Stockton, Kansas. It's just one of several tornadoes sighted in the state yesterday. They caused some damage and power outages, but no injuries -- Rob.

It was lucky, because we know how much danger and how much trouble such a storm can give.

ROB MARCIANO, CNN METEOROLOGIST: Luckily, those storms typically happen over rural farm areas. When they get over even the smaller towns, they can do some damage. So, you need to see that video, because it's fascinating just to see the strength of Mother Nature. Of course, we hope that no one gets hurt in the process.

We might want to add, also, that this is the time of year where they start to harvest hay out there in Oklahoma and northern Texas and any sort of big storms and hail can damage that crop. So that's a concern, also.

All right, speaking of rain, across western Cuba right now getting heavy rainfall here. This is tropical storm Arlene. Actually, the center of it is right about there. So everything has moved off toward the north and east, a very poorly organized system. It's encountering some strong winds that are kind of tearing the top off it. So for that reason, it's not expected to strengthen to hurricane status. We'll watch it, of course.

So, we have tropical storm watches that are posted from Morgan City, Louisiana all the way back through Indian Pass, Florida, pretty much the mid Panhandle of Florida. Over the next 36 hours, we expect tropical storm force winds and rainfall. And that whole deal, with battering waves across the Panhandle, as well.

We'll show you that video, or that live shot, of Miami. They have winds now out of the east at 25 knots, so heavy surf coming into the eastern shores of Miami, down across the very first part of the Keys there, as well. So you see those waves battering across the jetties there and beaches. So, winds 25 knots can certainly whip up those waves quite easily, and that will be the call later on tonight and tomorrow across the Panhandle, as this storm continues to move up toward the north and east.

(WEATHER REPORT)

MORRIS: And, Rob, as we have been saying, Arlene has its stormy eye on western Cuba. Those 40 mile an hour winds will lash the island nation with up to a foot or more of torrential rain.

Havana's bureau chief, Lucia Newman, joins us now live with the very latest from there -- Lucia.

LUCIA NEWMAN, CNN CORRESPONDENT: Good morning, Valerie.

Well, it's thunder and lightning and lots and lots of rain here in Havana. In fact, it's been raining nonstop since last night and with even more intensity in neighboring Pinar del Rio Province, which is just to the west, on the very western tip of Cuba.

Now, this is, of course, a tropical storm, not a hurricane. But, nevertheless, late Thursday afternoon, the authorities began what is routine here -- evacuating people living in low lying coastal areas in Pinar Del Rio, just as a precaution, because there is a lot of rain.

Now, the irony, Valerie, is that this -- that Cuba right now is witnessing the worst drought in a century. So, in general terms, this rain is actually very welcome in Havana and Pinar Del Rio, although too much of a good thing could be damaging, especially to the tobacco crop, which is used to make Cuba's famous cigars -- Valerie.

MORRIS: I understand also that there are some reports that say a house outside of Havana where Ernest Hemingway actually lived and wrote for, oh, a couple of decades, is actually potentially being threatened by that storm.

Can you confirm that?

NEWMAN: Valerie, to say that it's a danger may be taking it too far, in danger because of this storm. But it certainly isn't helping an already bad situation. Hemingway's famous villa, the Finca Vigia, as his villa was called, is particularly vulnerable to humidity, which has been eating away at everything inside. And so the intense rain now slows down the repairs and restoration work that are currently underway. And hopefully, that can be accelerated before the really big hurricanes of the season hit Cuba, as they are almost certain to do -- Valerie.

MORRIS: All right, Lucia Newman reporting from Havana.

Thank you.

Meantime, thousands of residents in Florida are keeping an eye on the progress of that tropical storm, Arlene. Right now, the storm is tracking on a path toward the Florida Panhandle, which certainly took a beating similar to this just last fall. But you may recall that hurricane Charlie wobbled off its predicted path. So Arlene's approach is not good news.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Denial at first. You're thinking no, this is not going to happen again. It just can't. You know, we just can't go through this again. That's denial.

(END VIDEO CLIP)

MORRIS: And here's proof that hurricanes can spawn more than just high winds. The "Orlando Sentinel" reports that Florida hospitals are in the midst of a baby boom. It was nine months ago that hurricane Charlie caused panic and power outages as the first of three big storms to make landfall.

Winter snow and late spring rain have brought drought relief to the Western states, but it's a mixed bag. Too much rain is a hardship for farmers and yet the experts caution residents about turning on all those faucets too soon.

Casey Wian has the story.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Get out of here!

CASEY WIAN, CNN CORRESPONDENT (voice-over): The catastrophic La Conchita and Laguna Beach mudslides are dramatic evidence that at least in southern California, the drought is a fading memory. The region has had more than three times its normal rainfall since October.

Hundreds of miles north, snow lingers in the mountains above California's San Joaquin Valley, the nation's most productive agricultural region. Twice the normal snow pack means water managers are for now more concerned about flood control than water conservation.

DANIEL VINK, LOWER TULE RIVER IRRIGATION DISTRICT: This is the first year after five years that we haven't had a drought. Obviously one year does not end a drought, but it sure goes a long way to help impact the water supplies in this area.

WIAN: Water now spills over the top of the Friant Dam.

(on camera): For five years, the only water that was released from the Friant Dam was a relative trickle, just enough to keep the San Joaquin River flowing. Now, an extra seven billion gallons a day is gushing out of the dam.

(voice-over): A stark contrast exists in southern Nevada, which depends on the Colorado River system for 90 percent of its water. Lake Mead recovered slightly this winter, but remains nearly 80 feet below capacity and is expected to drop another 20 feet this year. Strict water conservation measures remain in force.

PAT MULROY, SOUTHERN NEVADA WATER AUTHORITY: We are far from out of the danger zone. I mean, we don't know if last winter was simply a wet year in the middle of a dry cycle or whether it really signaled the end of a drought period.

WIAN: The national drought map, displaying the driest areas in darker colors, shows the worst of the drought easing during the past three months.

DOUGLAS LE COMTE, DROUGHT SPECIALIST, NOAA: There is a danger when you have one wet year like this, because historically we've seen cases where there have been long strings of dry winters only to be interrupted by one wet winter. So there's no guarantee that we won't reverse to a drier pattern come -- come next year. WIAN: Water managers worry that customers will become complacent and abandon the conservation measures that have helped ease the historic drought. That's more important than ever with the West's population growth far outpacing its supply of water.

Casey Wian, CNN, Friant, California.

(END VIDEOTAPE)

MORRIS: More arrests have been made in connection with the disappearance of Natalee Holloway. But there is still no sign of the missing teen. The investigation has also spread outside Aruba. Police forces in South America have been contacted as part of the investigation.

The three suspects arrested yesterday were originally questioned by police last week. There are now five people in custody, although none of them has been charged. Aruba's prime minister says they're doing what they can to solve the case.

(BEGIN VIDEO CLIP)

NELSON ODUBER, ARUBAN PRIME MINISTER: As prime minister, I guarantee you, as visitors, I guarantee all visitors of the island, my people, that we will do our utmost for this case and with all the power of the law, we will execute, if there is any related crime with this situation.

(END VIDEO CLIP)

MORRIS: Just like in Holloway's hometown of Mountain Brook, Alabama, people in Aruba are putting up yellow ribbons in her honor. A $55,000 reward has been offered for information in the case.

But what effect has this case had on Aruba's biggest industry? Coming up later in this hour of DAYBREAK, we'll talk about that with Aruba's minister of tourism, Myrna Jansen.

News now Across America.

A suspected gang shooting on the Los Angeles Freeway closed down traffic for several hours. The victim suffered only a minor head wound when he was shot by someone in another car. He is in stable condition.

The pilot of a small plane is dead after crashing into a house shortly after takeoff in Conroe, Texas. The fire from the crash burned the house to the ground, but no one was at home at time.

Several members of an Amish family in Middlefield, Ohio were seriously injured when their buggy was rear-ended by a car. Two children are among those taken to the hospital. Police say it doesn't appear that that car made any attempt to avoid hitting the family's vehicle.

And still to come this hour, in the spotlight, how a supporter stole the show at the Michael Jackson trial.

Looking to retire? Well, look again. You may have to wait longer than expected.

And meet the Smiths on the big screen. Tom O'Neil is here with this weekend's movies.

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

(COMMERCIAL BREAK)

MORRIS: Your news, money, weather and sports.

Hello, again.

It is 6:14 and here's what's all new this morning.

Senate Democrats say that there will be no vote on John Bolton until they get what they want from the White House. They requested records on Bolton from the National Security Agency, but so far none of the information on the U.N. ambassador nominee has been turned over.

In money, this table sold for a record price of $3.8 million at an auction in New York. The oak and glass table was made by Italian designer Carlo Mollino in 1948. Amazingly, it was only expected to fetch $200,000 at the sale.

In culture, thousands of fans have gathered in Nashville to kick off the four day Country Music Association Festival. Alan Jackson, Gretchen Wilson and Dolly Parton are among the big name country stars expected to perform.

In sports, talk about performance. The San Antonio Spurs shut down the Detroit Pistons in game one of the NBA finals. The Spurs won 84-69, and the 69 points for the Pistons, that's the fourth worst showing ever in the finals.

And in weather -- Rob.

MARCIANO: Hi, Spurs well rested there, Valerie, taking advantage of a few days off and the Pistons, not such a good performance.

(WEATHER REPORT)

MORRIS: And those are the headlines.

Still to come on DAYBREAK, a rival car maker wants to help General Motors. But legal experts have some questions about their possible plans.

"Business Buzz" is next.

Plus, island mystery -- where did Natalee Holloway first come in contact with one of the suspects in her disappearance? But first, we want to say good morning to New Orleans. Tropical storm Arlene could be headed toward the Gulf Coast of the United States.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

MORRIS: In our "Business Buzz" this morning, Fed Chairman Alan Greenspan tells lawmakers he doesn't see a significant slowdown in the U.S. economy ahead, or he doesn't see a major risk from any regional decline in housing prices, either. Greenspan also suggested the Fed will continue its policy of 1/4 point interest rate hikes, at least into the foreseeable future.

Some Senate Republicans are talking about their own ideas for overhauling Social Security. They include limiting future benefits for high income earners and raising the retirement age. It's been 65, but is scheduled to reach 67 for people born after 1960.

And now for our "Business Buzz."

A rival auto maker wants to help General Motors.

Well, Carrie Lee is here to tell us why -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Yes, this is interesting, Val.

Toyota is now saying for the second time in two months that it wants to raise prices to help the big three auto makers. A little unusual, but according to reports, for the second time, this is what they're saying. Now, such a move would give G.M. and other auto makers room to raise their prices and help their profits. So that's the thinking here.

The comments, though, could be viewed as price signaling and could even get Toyota in trouble with U.S. anti-trust regulators. According to a legal expert, well, what's the incentive for Toyota? Well, as Detroit's big three struggle, their problems are being blamed on stiff competition from Japanese automakers. So Toyota is worried that this would create a backlash.

And even if Toyota does raise prices, the move wouldn't necessarily achieve the desired result, as the U.S. companies may skip planned price increases to avoid the appearance of collusion.

By the way, Honda says it would not raise prices.

But still, an interesting move here.

MORRIS: Oh, yes.

LEE: Toyota would raise its own prices to help the U.S.

MORRIS: Price signaling -- is that a potential concern? LEE: That is exactly what it is. The definition of price signaling, you raise your prices hoping that your competitors do the same thing. And that would be a big no-no. So, but still, interesting that Toyota's chairman would be willing to entertain the idea anyway.

MORRIS: Absolutely.

As the markets open, still kind of mixed for the year, right?

LEE: Yes. We did see pretty decent gains yesterday, the Dow up 26 points, the Nasdaq up 17. Looking like a mixed session today.

Intel's mid-quarter report will be a stock to watch tonight. They did raise sales expectations. The stock actually fell a little bit, though, in the after hours session. So the chip giant on our radar screen today.

MORRIS: OK, Carrie Lee, thanks so much.

LEE: OK.

MORRIS: Still to come on DAYBREAK...

(BEGIN VIDEO CLIP FROM "MR. AND MRS. SMITH, COURTESY 20TH CENTURY FOX)

BRAD PITT, ACTOR: I tell you, I was married once before. Are you out of your mind? What is wrong with you?

ANGELINA JOLIE, ACTOR: You're what's wrong with me.

(END VIDEO CLIP)

MORRIS: "Mr. and Mrs. Smith" on the big screen. But how well do these lethal lovers play together? We'll ask Tom O'Neil next.

As we go to a break, a look at that surf that is kicking up on Haulover Beach in Miami, Florida as tropical storm Arlene moves in.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM "MR. AND MRS. SMITH, COURTESY 20TH CENTURY FOX)

JOLIE: You still alive, baby?

(END VIDEO CLIP)

MORRIS: That's Angelina Jolie and Brad Pitt in the new movie, "Mr. and Mrs. Smith."

And here to talk about that flick and other stuff is Tom O'Neil of "In Touch Weekly."

We all kind of watched and then kind of giggled. The premise of this movie is?

TOM O'NEIL, "IN TOUCH WEEKLY": Irresistible...

MORRIS: It really is.

O'NEIL: ... to anybody who's been in a dysfunctional relationship.

MORRIS: All right, so they are two assassins...

O'NEIL: Secret assassins for rival organizations.

MORRIS: And they're clueless that each of them are doing the same thing...

O'NEIL: Right.

MORRIS: ... until they get contracts to wipe out each other?

O'NEIL: And they're not too unhappy about that, because the relationship is not going too well anyway. So it sets up this great farce. The wonderful surprise is about this movie, Valerie, is how funny it is. But, also, these action sequences are structured and choreographed so well that it really paces the movie nicely.

They were not planned, by the way. As they made this movie, Angelina and Brad kind of entered into this rivalry and one-upmanship that they kept adding this to the movie, and it really adds creatively to the movie in a big way.

MORRIS: Well, the other thing that, of course, has added to the movie is all of the talk about hmmm, are they an item for real or not?

At a recent premier, they were just gushing about each other as far as their work.

O'NEIL: Right.

MORRIS: But staying pretty mum still on is it real, as far as their relationship, right?

O'NEIL: Our latest take on it is that he is pulling away from this relationship. Just last week, this very building that we're in right now, the Time Warner Center, he was staying here at the Mandarin Hotel. She was down the block at the Essex House with Maddox, her son. She was calling his room constantly and he wasn't picking up.

He's trying to create some distance, whether it's just during this promotional period or not, because I think he's starting to feel like he's the bad guy here, that he broke up this relationship with Jennifer for this. And so there's still much mystery.

MORRIS: He's sporting a new look. He's looking kind of hot with that...

O'NEIL: Yes, with that blond doo. Yes. MORRIS: Absolutely.

As far as the movie overall, do you give it a good rating?

O'NEIL: Absolutely great. Thumbs up. And it's going to be huge this weekend, making at least $30 million.

MORRIS: Wow!

Another thing that is potentially going to be talked about this weekend, I mean it's talked about all the time anyway, but there could be a verdict in the Michael Jackson case.

Give me your take on what is happening now and how things are playing out.

O'NEIL: Right. Normally guilty verdicts come quickly, so we're all wondering what does this mean as time drags out. However, Fridays are usually a good day to get a verdict because it's human nature. They tend to play these things out...

MORRIS: They want to tidy up before the weekend.

O'NEIL: Right. Now, the police say they have contingency plans in place for every scenario -- for Michael potentially trying to flee if there's a guilty verdict, even suicide. There are ambulances at the courthouse, not just for him, but for his mother and father.

But if he's exonerated, if he walks free today after a potential verdict, expect really good news from his camp, the announcement of a world music tour with him and his brothers.

MORRIS: Because that was my first question.

O'NEIL: Yes?

MORRIS: If on the one side, if he is vindicated and freed, I wanted to know what his next career move would be to kind of rebuild, capitalize...

O'NEIL: This has been in the works for a while. They've wanted to bring the Jackson 5 back together.

MORRIS: Yes.

O'NEIL: And this would be a great way to end this whole drama...

MORRIS: Oh, it would.

O'NEIL: ... and tragedy, to say hey, we've got some good news, we're going on the -- on a world tour. And it has to be a world tour because Michael is more popular overseas than he is domestically.

MORRIS: Yes.

All right, let's look at the flip side of this, because what if it is a guilty verdict? I mean he would be going to a prison where probably one of the biggest known prisoners, Sirhan Sirhan, is there.

O'NEIL: Right.

MORRIS: What kind of conditions and circumstances would he be in?

O'NEIL: We're talking about the Pelican Bay State Prison in northwest California if Michael is convicted of felony charges. He'll be put in the maximum security unit there, with Sirhan Sirhan. Charlie Manson is also at this prison, by the way, but not right now in the security -- high security area.

Michael will be given a job. He could be a barber. He could be serving food. No Jesus juice, sorry, Michael. There are about 30 inmates there and he has to conform to the rigid lifestyle there. He would be confined in a cell eight by ten and it would -- it's very glum.

MORRIS: Tom O'Neil, always good to see you.

O'NEIL: The same here, Valerie.

MORRIS: Thanks for the wrap-up.

And, also from the Jackson trial, this story. One of the pop star's most rabid supporters has been ordered to stay away from Court TV correspondent Diane Diamond. She says B.J. Hickman is harassing her and inciting others to harm her. Hickman moved from his home in Tennessee to attend the trial, where he has been a daily presence there since January.

Still to come on DAYBREAK, a push for renewing the Patriot Act. But does Congress feel the same way the president does?

Plus, the search for Natalee Holloway. We'll bring you up to date on the case when DAYBREAK returns.

(COMMERCIAL BREAK)

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Aired June 10, 2005 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
VALERIE MORRIS, CNN CORRESPONDENT: It's Friday, June 10.
And a weekend of severe weather lies ahead for many of you. From Midwest twisters to a tropical storm, you could be in for a big one. These are live pictures now from Haulover Beach in Miami. Take a look at this. Tropical storm Arlene is heading to the Gulf Coast.

And what could a judge's son have to do with the disappearance of that young American woman in Aruba?

Plus, drama outside the Jackson trial as deliberations go into day six.

ANNOUNCER: From the Time Warner Center in New York, this is DAYBREAK with Carol Costello and Chad Myers.

MORRIS: Good morning, everyone.

I'm Valerie Morris in for Carol Costello.

More on those top stories in a moment.

Also ahead this hour, the name may be common, but will the movie go beyond the ordinary? Tom O'Neil joins us with his reviews.

An Italian aid worker is in good health after being released from more than three weeks in captivity in Afghanistan. Clementina Cantoni, who works with CARE International, is en route now to Rome.

When it comes to his judicial nominations, President Bush is now five for five. The Senate has confirmed Justice William Pryor for the 11th U.S. Circuit Court of Appeals. Senators also approved two other judges, David McKeague and Richard Griffin.

Australians, well, they have been warned against traveling to Indonesia. The government says it has credible reports that terrorists in Indonesia are in the advanced stages of planning attacks. The reports say hotels catering to Westerners may be targeted.

We're keeping track of some stormy weather out there. You need to watch out for tropical storm Arlene because it is dumping a lot of rain on Cuba right now. But that storm is expected to make landfall somewhere along the northern Gulf Coast late tomorrow.

Forecasters say it will not become a hurricane. Florida residents mindful, though, of last year's devastating hurricanes, are preparing anyway. They are stocking up on supplies. A tropical storm watch has been issued from central Louisiana to the Florida Panhandle.

And take a look at this. This funnel cloud was spotted over Stockton, Kansas. It's just one of several tornadoes sighted in the state yesterday. They caused some damage and power outages, but no injuries -- Rob.

It was lucky, because we know how much danger and how much trouble such a storm can give.

ROB MARCIANO, CNN METEOROLOGIST: Luckily, those storms typically happen over rural farm areas. When they get over even the smaller towns, they can do some damage. So, you need to see that video, because it's fascinating just to see the strength of Mother Nature. Of course, we hope that no one gets hurt in the process.

We might want to add, also, that this is the time of year where they start to harvest hay out there in Oklahoma and northern Texas and any sort of big storms and hail can damage that crop. So that's a concern, also.

All right, speaking of rain, across western Cuba right now getting heavy rainfall here. This is tropical storm Arlene. Actually, the center of it is right about there. So everything has moved off toward the north and east, a very poorly organized system. It's encountering some strong winds that are kind of tearing the top off it. So for that reason, it's not expected to strengthen to hurricane status. We'll watch it, of course.

So, we have tropical storm watches that are posted from Morgan City, Louisiana all the way back through Indian Pass, Florida, pretty much the mid Panhandle of Florida. Over the next 36 hours, we expect tropical storm force winds and rainfall. And that whole deal, with battering waves across the Panhandle, as well.

We'll show you that video, or that live shot, of Miami. They have winds now out of the east at 25 knots, so heavy surf coming into the eastern shores of Miami, down across the very first part of the Keys there, as well. So you see those waves battering across the jetties there and beaches. So, winds 25 knots can certainly whip up those waves quite easily, and that will be the call later on tonight and tomorrow across the Panhandle, as this storm continues to move up toward the north and east.

(WEATHER REPORT)

MORRIS: And, Rob, as we have been saying, Arlene has its stormy eye on western Cuba. Those 40 mile an hour winds will lash the island nation with up to a foot or more of torrential rain.

Havana's bureau chief, Lucia Newman, joins us now live with the very latest from there -- Lucia.

LUCIA NEWMAN, CNN CORRESPONDENT: Good morning, Valerie.

Well, it's thunder and lightning and lots and lots of rain here in Havana. In fact, it's been raining nonstop since last night and with even more intensity in neighboring Pinar del Rio Province, which is just to the west, on the very western tip of Cuba.

Now, this is, of course, a tropical storm, not a hurricane. But, nevertheless, late Thursday afternoon, the authorities began what is routine here -- evacuating people living in low lying coastal areas in Pinar Del Rio, just as a precaution, because there is a lot of rain.

Now, the irony, Valerie, is that this -- that Cuba right now is witnessing the worst drought in a century. So, in general terms, this rain is actually very welcome in Havana and Pinar Del Rio, although too much of a good thing could be damaging, especially to the tobacco crop, which is used to make Cuba's famous cigars -- Valerie.

MORRIS: I understand also that there are some reports that say a house outside of Havana where Ernest Hemingway actually lived and wrote for, oh, a couple of decades, is actually potentially being threatened by that storm.

Can you confirm that?

NEWMAN: Valerie, to say that it's a danger may be taking it too far, in danger because of this storm. But it certainly isn't helping an already bad situation. Hemingway's famous villa, the Finca Vigia, as his villa was called, is particularly vulnerable to humidity, which has been eating away at everything inside. And so the intense rain now slows down the repairs and restoration work that are currently underway. And hopefully, that can be accelerated before the really big hurricanes of the season hit Cuba, as they are almost certain to do -- Valerie.

MORRIS: All right, Lucia Newman reporting from Havana.

Thank you.

Meantime, thousands of residents in Florida are keeping an eye on the progress of that tropical storm, Arlene. Right now, the storm is tracking on a path toward the Florida Panhandle, which certainly took a beating similar to this just last fall. But you may recall that hurricane Charlie wobbled off its predicted path. So Arlene's approach is not good news.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Denial at first. You're thinking no, this is not going to happen again. It just can't. You know, we just can't go through this again. That's denial.

(END VIDEO CLIP)

MORRIS: And here's proof that hurricanes can spawn more than just high winds. The "Orlando Sentinel" reports that Florida hospitals are in the midst of a baby boom. It was nine months ago that hurricane Charlie caused panic and power outages as the first of three big storms to make landfall.

Winter snow and late spring rain have brought drought relief to the Western states, but it's a mixed bag. Too much rain is a hardship for farmers and yet the experts caution residents about turning on all those faucets too soon.

Casey Wian has the story.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Get out of here!

CASEY WIAN, CNN CORRESPONDENT (voice-over): The catastrophic La Conchita and Laguna Beach mudslides are dramatic evidence that at least in southern California, the drought is a fading memory. The region has had more than three times its normal rainfall since October.

Hundreds of miles north, snow lingers in the mountains above California's San Joaquin Valley, the nation's most productive agricultural region. Twice the normal snow pack means water managers are for now more concerned about flood control than water conservation.

DANIEL VINK, LOWER TULE RIVER IRRIGATION DISTRICT: This is the first year after five years that we haven't had a drought. Obviously one year does not end a drought, but it sure goes a long way to help impact the water supplies in this area.

WIAN: Water now spills over the top of the Friant Dam.

(on camera): For five years, the only water that was released from the Friant Dam was a relative trickle, just enough to keep the San Joaquin River flowing. Now, an extra seven billion gallons a day is gushing out of the dam.

(voice-over): A stark contrast exists in southern Nevada, which depends on the Colorado River system for 90 percent of its water. Lake Mead recovered slightly this winter, but remains nearly 80 feet below capacity and is expected to drop another 20 feet this year. Strict water conservation measures remain in force.

PAT MULROY, SOUTHERN NEVADA WATER AUTHORITY: We are far from out of the danger zone. I mean, we don't know if last winter was simply a wet year in the middle of a dry cycle or whether it really signaled the end of a drought period.

WIAN: The national drought map, displaying the driest areas in darker colors, shows the worst of the drought easing during the past three months.

DOUGLAS LE COMTE, DROUGHT SPECIALIST, NOAA: There is a danger when you have one wet year like this, because historically we've seen cases where there have been long strings of dry winters only to be interrupted by one wet winter. So there's no guarantee that we won't reverse to a drier pattern come -- come next year. WIAN: Water managers worry that customers will become complacent and abandon the conservation measures that have helped ease the historic drought. That's more important than ever with the West's population growth far outpacing its supply of water.

Casey Wian, CNN, Friant, California.

(END VIDEOTAPE)

MORRIS: More arrests have been made in connection with the disappearance of Natalee Holloway. But there is still no sign of the missing teen. The investigation has also spread outside Aruba. Police forces in South America have been contacted as part of the investigation.

The three suspects arrested yesterday were originally questioned by police last week. There are now five people in custody, although none of them has been charged. Aruba's prime minister says they're doing what they can to solve the case.

(BEGIN VIDEO CLIP)

NELSON ODUBER, ARUBAN PRIME MINISTER: As prime minister, I guarantee you, as visitors, I guarantee all visitors of the island, my people, that we will do our utmost for this case and with all the power of the law, we will execute, if there is any related crime with this situation.

(END VIDEO CLIP)

MORRIS: Just like in Holloway's hometown of Mountain Brook, Alabama, people in Aruba are putting up yellow ribbons in her honor. A $55,000 reward has been offered for information in the case.

But what effect has this case had on Aruba's biggest industry? Coming up later in this hour of DAYBREAK, we'll talk about that with Aruba's minister of tourism, Myrna Jansen.

News now Across America.

A suspected gang shooting on the Los Angeles Freeway closed down traffic for several hours. The victim suffered only a minor head wound when he was shot by someone in another car. He is in stable condition.

The pilot of a small plane is dead after crashing into a house shortly after takeoff in Conroe, Texas. The fire from the crash burned the house to the ground, but no one was at home at time.

Several members of an Amish family in Middlefield, Ohio were seriously injured when their buggy was rear-ended by a car. Two children are among those taken to the hospital. Police say it doesn't appear that that car made any attempt to avoid hitting the family's vehicle.

And still to come this hour, in the spotlight, how a supporter stole the show at the Michael Jackson trial.

Looking to retire? Well, look again. You may have to wait longer than expected.

And meet the Smiths on the big screen. Tom O'Neil is here with this weekend's movies.

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

(COMMERCIAL BREAK)

MORRIS: Your news, money, weather and sports.

Hello, again.

It is 6:14 and here's what's all new this morning.

Senate Democrats say that there will be no vote on John Bolton until they get what they want from the White House. They requested records on Bolton from the National Security Agency, but so far none of the information on the U.N. ambassador nominee has been turned over.

In money, this table sold for a record price of $3.8 million at an auction in New York. The oak and glass table was made by Italian designer Carlo Mollino in 1948. Amazingly, it was only expected to fetch $200,000 at the sale.

In culture, thousands of fans have gathered in Nashville to kick off the four day Country Music Association Festival. Alan Jackson, Gretchen Wilson and Dolly Parton are among the big name country stars expected to perform.

In sports, talk about performance. The San Antonio Spurs shut down the Detroit Pistons in game one of the NBA finals. The Spurs won 84-69, and the 69 points for the Pistons, that's the fourth worst showing ever in the finals.

And in weather -- Rob.

MARCIANO: Hi, Spurs well rested there, Valerie, taking advantage of a few days off and the Pistons, not such a good performance.

(WEATHER REPORT)

MORRIS: And those are the headlines.

Still to come on DAYBREAK, a rival car maker wants to help General Motors. But legal experts have some questions about their possible plans.

"Business Buzz" is next.

Plus, island mystery -- where did Natalee Holloway first come in contact with one of the suspects in her disappearance? But first, we want to say good morning to New Orleans. Tropical storm Arlene could be headed toward the Gulf Coast of the United States.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

MORRIS: In our "Business Buzz" this morning, Fed Chairman Alan Greenspan tells lawmakers he doesn't see a significant slowdown in the U.S. economy ahead, or he doesn't see a major risk from any regional decline in housing prices, either. Greenspan also suggested the Fed will continue its policy of 1/4 point interest rate hikes, at least into the foreseeable future.

Some Senate Republicans are talking about their own ideas for overhauling Social Security. They include limiting future benefits for high income earners and raising the retirement age. It's been 65, but is scheduled to reach 67 for people born after 1960.

And now for our "Business Buzz."

A rival auto maker wants to help General Motors.

Well, Carrie Lee is here to tell us why -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Yes, this is interesting, Val.

Toyota is now saying for the second time in two months that it wants to raise prices to help the big three auto makers. A little unusual, but according to reports, for the second time, this is what they're saying. Now, such a move would give G.M. and other auto makers room to raise their prices and help their profits. So that's the thinking here.

The comments, though, could be viewed as price signaling and could even get Toyota in trouble with U.S. anti-trust regulators. According to a legal expert, well, what's the incentive for Toyota? Well, as Detroit's big three struggle, their problems are being blamed on stiff competition from Japanese automakers. So Toyota is worried that this would create a backlash.

And even if Toyota does raise prices, the move wouldn't necessarily achieve the desired result, as the U.S. companies may skip planned price increases to avoid the appearance of collusion.

By the way, Honda says it would not raise prices.

But still, an interesting move here.

MORRIS: Oh, yes.

LEE: Toyota would raise its own prices to help the U.S.

MORRIS: Price signaling -- is that a potential concern? LEE: That is exactly what it is. The definition of price signaling, you raise your prices hoping that your competitors do the same thing. And that would be a big no-no. So, but still, interesting that Toyota's chairman would be willing to entertain the idea anyway.

MORRIS: Absolutely.

As the markets open, still kind of mixed for the year, right?

LEE: Yes. We did see pretty decent gains yesterday, the Dow up 26 points, the Nasdaq up 17. Looking like a mixed session today.

Intel's mid-quarter report will be a stock to watch tonight. They did raise sales expectations. The stock actually fell a little bit, though, in the after hours session. So the chip giant on our radar screen today.

MORRIS: OK, Carrie Lee, thanks so much.

LEE: OK.

MORRIS: Still to come on DAYBREAK...

(BEGIN VIDEO CLIP FROM "MR. AND MRS. SMITH, COURTESY 20TH CENTURY FOX)

BRAD PITT, ACTOR: I tell you, I was married once before. Are you out of your mind? What is wrong with you?

ANGELINA JOLIE, ACTOR: You're what's wrong with me.

(END VIDEO CLIP)

MORRIS: "Mr. and Mrs. Smith" on the big screen. But how well do these lethal lovers play together? We'll ask Tom O'Neil next.

As we go to a break, a look at that surf that is kicking up on Haulover Beach in Miami, Florida as tropical storm Arlene moves in.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP FROM "MR. AND MRS. SMITH, COURTESY 20TH CENTURY FOX)

JOLIE: You still alive, baby?

(END VIDEO CLIP)

MORRIS: That's Angelina Jolie and Brad Pitt in the new movie, "Mr. and Mrs. Smith."

And here to talk about that flick and other stuff is Tom O'Neil of "In Touch Weekly."

We all kind of watched and then kind of giggled. The premise of this movie is?

TOM O'NEIL, "IN TOUCH WEEKLY": Irresistible...

MORRIS: It really is.

O'NEIL: ... to anybody who's been in a dysfunctional relationship.

MORRIS: All right, so they are two assassins...

O'NEIL: Secret assassins for rival organizations.

MORRIS: And they're clueless that each of them are doing the same thing...

O'NEIL: Right.

MORRIS: ... until they get contracts to wipe out each other?

O'NEIL: And they're not too unhappy about that, because the relationship is not going too well anyway. So it sets up this great farce. The wonderful surprise is about this movie, Valerie, is how funny it is. But, also, these action sequences are structured and choreographed so well that it really paces the movie nicely.

They were not planned, by the way. As they made this movie, Angelina and Brad kind of entered into this rivalry and one-upmanship that they kept adding this to the movie, and it really adds creatively to the movie in a big way.

MORRIS: Well, the other thing that, of course, has added to the movie is all of the talk about hmmm, are they an item for real or not?

At a recent premier, they were just gushing about each other as far as their work.

O'NEIL: Right.

MORRIS: But staying pretty mum still on is it real, as far as their relationship, right?

O'NEIL: Our latest take on it is that he is pulling away from this relationship. Just last week, this very building that we're in right now, the Time Warner Center, he was staying here at the Mandarin Hotel. She was down the block at the Essex House with Maddox, her son. She was calling his room constantly and he wasn't picking up.

He's trying to create some distance, whether it's just during this promotional period or not, because I think he's starting to feel like he's the bad guy here, that he broke up this relationship with Jennifer for this. And so there's still much mystery.

MORRIS: He's sporting a new look. He's looking kind of hot with that...

O'NEIL: Yes, with that blond doo. Yes. MORRIS: Absolutely.

As far as the movie overall, do you give it a good rating?

O'NEIL: Absolutely great. Thumbs up. And it's going to be huge this weekend, making at least $30 million.

MORRIS: Wow!

Another thing that is potentially going to be talked about this weekend, I mean it's talked about all the time anyway, but there could be a verdict in the Michael Jackson case.

Give me your take on what is happening now and how things are playing out.

O'NEIL: Right. Normally guilty verdicts come quickly, so we're all wondering what does this mean as time drags out. However, Fridays are usually a good day to get a verdict because it's human nature. They tend to play these things out...

MORRIS: They want to tidy up before the weekend.

O'NEIL: Right. Now, the police say they have contingency plans in place for every scenario -- for Michael potentially trying to flee if there's a guilty verdict, even suicide. There are ambulances at the courthouse, not just for him, but for his mother and father.

But if he's exonerated, if he walks free today after a potential verdict, expect really good news from his camp, the announcement of a world music tour with him and his brothers.

MORRIS: Because that was my first question.

O'NEIL: Yes?

MORRIS: If on the one side, if he is vindicated and freed, I wanted to know what his next career move would be to kind of rebuild, capitalize...

O'NEIL: This has been in the works for a while. They've wanted to bring the Jackson 5 back together.

MORRIS: Yes.

O'NEIL: And this would be a great way to end this whole drama...

MORRIS: Oh, it would.

O'NEIL: ... and tragedy, to say hey, we've got some good news, we're going on the -- on a world tour. And it has to be a world tour because Michael is more popular overseas than he is domestically.

MORRIS: Yes.

All right, let's look at the flip side of this, because what if it is a guilty verdict? I mean he would be going to a prison where probably one of the biggest known prisoners, Sirhan Sirhan, is there.

O'NEIL: Right.

MORRIS: What kind of conditions and circumstances would he be in?

O'NEIL: We're talking about the Pelican Bay State Prison in northwest California if Michael is convicted of felony charges. He'll be put in the maximum security unit there, with Sirhan Sirhan. Charlie Manson is also at this prison, by the way, but not right now in the security -- high security area.

Michael will be given a job. He could be a barber. He could be serving food. No Jesus juice, sorry, Michael. There are about 30 inmates there and he has to conform to the rigid lifestyle there. He would be confined in a cell eight by ten and it would -- it's very glum.

MORRIS: Tom O'Neil, always good to see you.

O'NEIL: The same here, Valerie.

MORRIS: Thanks for the wrap-up.

And, also from the Jackson trial, this story. One of the pop star's most rabid supporters has been ordered to stay away from Court TV correspondent Diane Diamond. She says B.J. Hickman is harassing her and inciting others to harm her. Hickman moved from his home in Tennessee to attend the trial, where he has been a daily presence there since January.

Still to come on DAYBREAK, a push for renewing the Patriot Act. But does Congress feel the same way the president does?

Plus, the search for Natalee Holloway. We'll bring you up to date on the case when DAYBREAK returns.

(COMMERCIAL BREAK)

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