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American Morning

New Press Secretary?; Egypt Terror Attack; Changes in Nepal; Feeling the Pinch; Jury Deliberations in Moussaoui Trial; Sanctions Threat

Aired April 25, 2006 - 06:00   ET

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


MILES O'BRIEN, CNN ANCHOR: This morning, petroleum, politics and pressure. With his poll numbers plummeting, the president takes on rising gas prices today. We have a preview.
SOLEDAD O'BRIEN, CNN ANCHOR: And the press is on at the white House. Is TV news host Tony Snow going to act as the administration's mouthpiece? We're going to take a look at that this morning.

BRIANNA KEILER, CNN CORRESPONDENT: I'm Brianna Keiler in Washington. The fate of Zacarias Moussaoui rests in the hands of the jury. Will it be life in prison or death?

M. O'BRIEN: On the day after Osama bin Laden speaks, three back- to-back terror bombings at a resort in Egypt. We're live with the latest on the search for who is responsible.

CHAD MYERS, CNN METEOROLOGIST: Severe weather in Oklahoma City yesterday, El Reno. We even have pictures of tornadoes there and more severe weather to the east of there. Details in seven minutes.

S. O'BRIEN: Good morning. Welcome to Tuesday, everybody. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien.

S. O'BRIEN: You'd call it I guess the power of the pump. This morning, President Bush is delivering what the White House is calling a major speech on energy. It comes as a new CNN poll, conducted by Opinion Research Corporation, shows that nearly 7 in 10 Americans believe that rising gas prices are causing them hardships. That number is up significantly from just a year ago.

The White House says the president has a four-part plan that's going to include the following: asking the Energy and Justice Departments to investigate whether oil prices are being illegally manipulated, promoting greater fuel efficiency, boosting gasoline supply at home and encouraging energy companies to reinvest some of their profits in new technologies and alternative fuels.

The president's remarks on energy come at 10:05 a.m. Eastern Time out of Washington, D.C. CNN, of course, going to bring that to you live when it happens -- Miles.

M. O'BRIEN: It appears the next White House press secretary will be a FOX News commentator. Sources tell CNN Tony Snow has been asked and will likely accept the job.

White House correspondent Suzanne Malveaux outfoxed the competition and has the story for us.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (on camera): Well it's a move that the new chief of staff, White House Chief of Staff Josh Bolten, wanted to make very quickly to get resolved early this week. Numerous sources, those close to the White House, as well as familiar with the deliberations, say that FOX anchor Tony Snow not only got the job offer for press secretary, but is highly likely, highly expected to accept this offer. That announcement expected within the next 24 to 48 hours.

Sources telling us that the White House reached out to Tony Snow several weeks ago by Bolten quietly at a meeting at the White House to feel him out for the job. And then of course there were a number of considerations, his family, his finances and most notably his health. He has been battling colon cancer. We are told by sources that late last week he got a clean bill of health from his doctor, a good prognosis. It was over the weekend that he had to deliberate various concerns, that he resolve those concerns.

And of course the White House very eager to fill this position. It is considered a good fit for this administration. Tony Snow, a conservative radio talk show host, FOX anchor, but also a former speechwriter for President Bush's father.

Suzanne Malveaux, CNN, Washington.

(END VIDEOTAPE)

S. O'BRIEN: A CNN "Security Watch" now, will al Qaeda conspirator Zacarias Moussaoui live or die? That is what a jury of nine men and three women must now decide. They got the case on Monday.

CNN's Brianna Keiler is live for us in Washington, D.C.

Hey, Brianna, good morning.

KEILER: Good morning, Soledad.

This certainly has been a roller-coaster of a capital murder trial, but it is finally nearly an end as today jurors begin their first full day of deliberations.

(BEGIN VIDEOTAPE)

KEILER (voice-over): Weeks of heart wrenching evidence.

MELISSA DOI, 9/11 VICTIM: I'm going to die, aren't I?

OPERATOR: No, no, no, no, no, no.

DOI: I am going to die.

KEILER: Over the course of the Zacarias Moussaoui trial, emotional testimony was punctuated by serious legal missteps and hateful outbursts in court. Now it is all in the hands of the jury.

In closing arguments, prosecutor David Raskin reminded the court how victims were vaporized when the planes slammed into buildings or were crushed by concrete when those buildings collapsed. His comments followed those of 30 September 11 families who testified for the prosecution.

ROSEMARY DILLARD, 9/11 FAMILY MEMBER: To make light of the pain and suffering of others, what reason does that person have to live?

KEILER: More than a dozen 9/11 families who say killing Moussaoui will make him a martyr took the stand for the defense. Moussaoui's lawyers' greatest obstacle proved early on to be their own client. Moussaoui first testified in March that he was supposed to fly a fifth plane on 9/11 into the White House. His lawyers argue he made it all up.

UNIDENTIFIED MALE: The government's main weakness in this case is the lack of their own evidence to corroborate Moussaoui's admission that he was to be part of the September 11, 2001 attacks.

(END VIDEOTAPE)

KEILER: Jurors must come to a unanimous decision for Moussaoui to receive the death penalty.

Brianna Keiler, CNN, Washington.

S. O'BRIEN: Public opinion appears mixed, really, on whether Moussaoui should be sentenced to death. A new CNN poll, 50 percent favor the death penalty for Moussaoui, 45 percent say they are opposed.

Brianna Keiler with our report from Washington, D.C. this morning.

Thanks, Brianna -- Miles.

M. O'BRIEN: Even as the Moussaoui trials wraps up, another important terror trial is just under way in New York City. A Pakistani immigrant with a hatred for Americans charged with a scheme to blow up a subway station in Manhattan.

Shahawar Matin Siraj was arrested in August 2004 on the eve of the Republican National Convention in New York. A police informant testified Siraj wanted to punish Americans because he was upset about the war in Iraq. Defense attorneys claim Siraj was entrapped by the informant and that the government created a crime where none existed.

In -- Soledad.

S. O'BRIEN: Happening in America this morning, in Washington State, 16-year-old accused of planning to shoot people at his high school has been charged with first-degree attempted assault. Police found several guns, a homemade bomb in the teenager's home near Tacoma. He said -- apparently the police are saying he said he was going to kill 15 people at random this week.

And there was a court hearing for five teenagers who allegedly were planning to attack their high school in Riverton, Kansas. The teenagers are now facing initial charges of incitement to riot and making criminal threats. One of them, an 18-year-old, can be released on bond. Four others are between the ages of 15 and 17. They're going to remain in custody until a hearing, which happens on May 3.

And a very close look at a massive tornado, take a look at this. A news chopper caught these dramatic pictures near El Reno in Oklahoma. It's part of a big storm that swept across central and northern parts of the state. The storm damaged some hangars at the El Reno Airport.

And our severe weather expert Chad Myers talks about golf ball sized hail. Take a look at that. Look at that. That is big. Despite all the stormy weather...

MYERS: The size of a golf ball.

S. O'BRIEN: Yes, it's the size of a golf ball, really, almost exactly.

M. O'BRIEN: I think there was a golf ball in there, wasn't there?

S. O'BRIEN: No, in the middle to compare.

M. O'BRIEN: OK, thank you.

S. O'BRIEN: Come on now.

Despite all the stormy weather, of course, no injuries were reported. And that's pretty remarkable, I think, Chad, when you consider that that really is golf ball sized hail.

M. O'BRIEN: Raining Titleist.

MYERS: It's amazing. You get golf balls at a driving range. You know you get too close and they fall out of the sky. That was happening yesterday.

Actually, that was conglomerate hail. It looks a little different than the big, big hail that we'll show you a little bit later. See how all those little pieces, those are little individual pieces of smaller hail that actually glued themselves together on the way up and down.

Sometimes you'll get one solid hunk. And I have pictures of some of those solid hunks from Wichita. They actually went right through the windshield, didn't break it, right smack through it in a hole about that big. We'll take you to those pictures a little bit later. People in Wichita may not want to see them.

(WEATHER REPORT)

Back to you guys.

M. O'BRIEN: Thank you very much, Chad.

Terror strikes, once again, on Egypt's Sinai Peninsula. And, once again, a coastal resort town filled with Westerners is the target. Three synchronized explosions leaving 23 dead in Dahab, Egypt. Dozens more injured in the terror attacks, including four Americans. Dahab sits on the East Coast of the Sinai on the shores of the Red Sea. It's a popular resort town. The attacks occurring yesterday evening. The streets filled with tourists headed to dinner.

CNN's Paula Hancocks is on the phone now from Dahab with more.

Paula, tell us about the investigation.

PAULA HANCOCKS, CNN CORRESPONDENT: Well the investigation, Miles, is still ongoing. There has been no actual claim of responsibility, so they don't have anything to go on from that respect. But there have been forensics down here and for most of the hours after these attacks did happen about 7:15 p.m. local time yesterday, about midday your time. They have cordoned off particular areas.

And some of the security officials say they think it might just be local grievances, but they are in the minority. Many more are saying this does appear as though it could be linked to al Qaeda or at least a group who has ideology linked to al Qaeda.

Now it has all the hallmarks, as well, of two previous attacks, as you mentioned, in the last 18 months, where about 100 people have been killed from these bombings. Three almost simultaneous bombings in the place just about 65 miles north of here in 2004. And then also about 65 miles south of here just last July. So many people here are saying they almost expected it because they were in the middle and they expected another attack -- Miles.

M. O'BRIEN: Paula, if they expected it, and given the history, had security been upped in some of these resort towns that clearly have become a target?

HANCOCKS: Security has been increased a tremendous amount. There have been more checkpoints put in from, for example, Cairo, the capital, coming down south to the Sinai Peninsula itself and also coming from Israel, coming in to Taba, which is just across the border from Israel, there are a lot more checks there. But the fact is they still couldn't stop these three particular attacks.

And what the security officials are guessing is that this is an attack also against the pro-Western Arab governments, the fact that Egypt is pro-Western, the fact that tourism runs this particular area. They're trying to hit the tourists. They're trying to hit the economy. And judging from the amount of tourists around compared to yesterday, I would say that they're actually succeeding in the short term.

M. O'BRIEN: Paula Hancocks on the line with us from Dahab, Egypt, thank you.

Be sure to stay tuned to CNN day and night for the most reliable news about your security.

S. O'BRIEN: Still to come this morning, admit it, come on, admit it, you pretend you're working and you're actually surfing the Web, right?

M. O'BRIEN: No, not me, never.

S. O'BRIEN: You're anchoring this show and you're surfing the Web, right, -- Miles?

M. O'BRIEN: A little online shopping every now and then during the show.

S. O'BRIEN: Doing it on the sly. Anyway, we're going to tell you this morning why it's OK to surf the Internet at work, really, no joke. We'll explain just ahead.

M. O'BRIEN: It's legal.

SATINDER BINDRA, CNN SENIOR INTERNATIONAL CORRESPONDENT: Hello, I'm Satinder Bindra in Katmandu, Nepal.

Hundreds of thousands of people are marching into the country's capital. This time not to protest but to celebrate. After three weeks of almost nonstop protests, the country's king, who lives in this palace just down the road, is handing power back to the people. Parliament convenes Friday and Nepal is soon going to get a democratic government.

M. O'BRIEN: And why the immigration debate is really getting ugly in California. Governor Arnold Schwarzenegger says some officials are getting threats.

There's other stuff going on. Like to find out about it? Read your screen.

(COMMERCIAL BREAK)

M. O'BRIEN: Our top stories right now.

President Bush says he wants to look into possible gas price gouging. This morning, he'll talk about his long and short-term plans to deal with the energy crisis.

A must-pass-spending bill goes to the Senate today. It's to pay for the war and Katrina, but a fight expected over pork projects added to the bill.

In California where immigration is often front and center, Governor Arnold Schwarzenegger announcing some death threats made to the Lt. Governor Cruz Bustamonte and the Los Angeles Mayor Antonio Villaraigosa. Both are of Mexican heritage.

S. O'BRIEN: Business news this morning.

Enron founder Ken Lay getting his opportunity to be on the stand. That's a positive spin. Finally getting your opportunity to tell your side of the story.

(CROSSTALK)

M. O'BRIEN: I get to go, please.

CARRIE LEE, CNN CORRESPONDENT: Bottom line, he blamed it on the finance guy, Andrew Fastow, former CFO of Enron. Lay taking the stand yesterday in his own defense. He denied that a fraud took place at Enron a few years ago. Called Enron's problems a classic run on the bank. Pretty much blamed the whole thing on Andy Fastow, as I said, a former CFO who testified for the prosecution. Earlier in the trial, Lay said his biggest mistake was hiring Fastow. His second biggest mistake was promoting him to CFO.

He also said whistle-blower Sherron Watkins, you might remember this name, did not call the transactions illegal, she just said they looked bad. He admits that he did meet with her. She requested a meeting regarding the company's accounting, but that the legality of the numbers was never really brought up. So that is a little bit different from what she said some years ago.

M. O'BRIEN: He's trying to put himself in a sympathetic light. Is he succeeding?

LEE: You know it's a tough thing to say. I mean, personally, on a subjective level, he's affable, he's likeable, has a very grandfatherly demeanor to him. They're trying to talk about his contributions to charity, to the community. Whether that's going to be a sell for the jury or not, well, we'll see.

M. O'BRIEN: Yes, he's slapping the backs of reporters, you know it?

LEE: Trying. Trying.

M. O'BRIEN: Yes.

LEE: Something else regarding Microsoft, they're unveiling a new Beta version of Internet Explorer today. They're doing this a couple of times. The final version will be available later this year. This is normal. Microsoft typically does this. There were some problems with the earlier version, particularly trying to access banking and news sites. So they are working on that if you use Microsoft Internet.

S. O'BRIEN: Two large problems,...

LEE: Yes.

S. O'BRIEN: ... banking and news sites. LEE: Exactly. Exactly.

M. O'BRIEN: Meanwhile...

S. O'BRIEN: But the shopping was fine.

M. O'BRIEN: Yes, and that's the important thing.

LEE: Yes.

And then turning to stocks finally, looking like a pretty flat open on Wall Street today. Dow took a little bit of a hit yesterday, down 11 points, Nasdaq down about 9. Oil fell almost $2 a barrel. So we're clearly seeing some profit taking here.

And that's a look at business news so far.

S. O'BRIEN: Great.

M. O'BRIEN: Thank you, Carrie Lee.

S. O'BRIEN: Thank you.

LEE: Sure.

M. O'BRIEN: Chad will have the forecast after a quick break. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Taking a look now at some of the most popular stories on CNN.com.

Maury Povich and staff members of his show have been hit with a $100 million sexual harassment lawsuit. A former producer claims that Povich's relationship with another co-worker created a hostile workplace that was abusive to women. Maury Povich is married to TV news anchor Connie Chung.

Guess what, turns out you can't fire somebody for surfing the Web. Good news for all of us who do that. A New York judge ruled visiting sites on the Internet at work, it's the same as reading a newspaper or talking on the phone.

And it's a good thing. A comeback for Martha Stewart to tell you about, at least on Wall Street, her stock is up 20 percent since February.

Turning to Nepal now, the anger there being replaced by cheers and celebrations. People pouring into the streets after Nepal's king announced that he is going to reinstate the Parliament that was dissolved back in 2002. This follows three weeks of pro-democracy demonstrations and clashes with security forces that you've seen.

Senior international correspondent Satinder Bindra joins us now from Katmandu. Hey, Satinder, good morning.

BINDRA: Hey, Soledad, good morning.

Just take a look at these streets. For several days there was just nothing moving here. There was a curfew. All the stores that you see here were shut. And now many people very happy. They're coming out into the streets. Traffic is moving just as normal.

And what you're seeing right now, Soledad, is the king's palace. It was from here last night that the king announced he was reconvening Parliament, which he had dissolved. He had dissolved this Parliament in 2002. But all things coming together for pro-democracy activists.

They have been battling the king now almost for three weeks. Fourteen of them have been killed. And earlier, the king had given some concessions. They weren't enough. People continued to pour out in the streets. Still the king finally said Parliament would be recalled.

Just down the street there's tens of thousands of protesters. They're having a wild party. But now the seven main political parties organizing these protests are telling them to go back home. Some people have been tearing down posters. And these political parties telling their activists that, hey, let's get together and have another big party two days from now. So a lot of big changes. Nepal is soon going to have a democratic government -- Soledad.

S. O'BRIEN: People happy, obviously, and clearly celebrating. But, Satinder, not satisfied or not satisfaction for everybody, I mean, because if you talk about and look at the calls for the new constitution, didn't happen, right, big problem there?

BINDRA: Yes, there are also Maoist insurgents or communists in this country and they wanted more from the king. They wanted the king to announce an assembly, which would rewrite a new constitution, which would limit or make the king a mere figurehead. That hasn't happened. But political parties say they will make that happen. They'll try to elect an assembly. So some disappointment, but by and large a lot of joy here on the streets -- Soledad.

S. O'BRIEN: Yes, we can certainly see it in the pictures.

Satinder Bindra for us this morning. He's reporting to us from Katmandu.

Thanks, Satinder -- Miles.

M. O'BRIEN: Let's get a check of the forecast, Chad Myers in the CNN Center Weather Center.

Good morning, -- Chad.

MYERS: Good morning, Miles.

(WEATHER REPORT) Back to you.

M. O'BRIEN: All right, Chad Myers, stay there, will you, please?

MYERS: Yes. Yes.

M. O'BRIEN: You've got to see this video.

MYERS: OK.

M. O'BRIEN: You've watched a diving competition before. And when you watch them, you probably think why doesn't this happen more often because it always seems so close. Now brace yourself, this is tough, OK. You're looking at 15-year-old Greg Farucci (ph).

S. O'BRIEN: Gosh.

M. O'BRIEN: North Carolina. He's at the U.S. Open Diving Championship in Indianapolis. Look at it in slow-mo now.

S. O'BRIEN: My god.

M. O'BRIEN: It's -- I can't. I really can't. My goodness gracious. He hits his head right there on the springboard, as you see. It's a good thing it wasn't one of those platform deals, right, -- Chad?

MYERS: Yes.

M. O'BRIEN: You know at least there's a little give in it.

S. O'BRIEN: Wow.

MYERS: He got a little piece of his shoulder, too, which didn't take the -- all the cranial nerves up there, too, so.

M. O'BRIEN: Right. His coach, Ted Aru (ph), jumped in fully clothed to save him, pulled him from the water. As you saw, he was -- I can't even read while I'm doing that. Anyway, he was treated on the pool deck, taken to the hospital. We're told he suffered a concussion.

S. O'BRIEN: And that's it, right, I mean, he's OK?

M. O'BRIEN: Fair condition.

S. O'BRIEN: Thank god.

M. O'BRIEN: Can you believe that, Chad? I'm...

S. O'BRIEN: My gosh.

M. O'BRIEN: Unbelievable.

MYERS: Yes.

S. O'BRIEN: Those are tough to watch.

M. O'BRIEN: All right.

S. O'BRIEN: We're going to take a look at the rest of the morning's top stories straight ahead, including the very latest on high gas prices. The promise is now they'll take a look into possible price gouging. We're going to talk to Carol about that.

Hi, -- Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Yes, I'm Carol Costello in the newsroom.

Are the big oil companies ripping you off? The president wants to know. We'll unveil his four-point plan right after this break.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody.

Let's start with our top stories this morning.

It's not exactly a news flash to point out that filling up is costing you more, much more. Prices around three bucks a gallon for gasoline. President Bush, though, set to announce an investigation into possible price gouging.

Sources close to the White House say that FOX News anchor Tony Snow is likely going to be the next White House press secretary. Scott McClellan announced his resignation last week.

Bill Gates and Microsoft today are unveiling the latest version of Internet Explorer the Web browser. Version 7 is available today for a free download.

Good morning. Welcome back, everybody. I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien. We're glad you're with us.

This morning you're probably angry about the high cost of gas and you're wondering who or what to blame. Is it that huge SUV you have sitting in the driveway that gets about 13 miles to the gallon or is it the oil companies gouging us as the price of oil rises or is it the politicians we send to Washington? Could they be doing more?

Carol Costello with more on this from the newsroom.

Good morning, -- Carol.

COSTELLO: I think it's a little bit of all of those things.

You know the president's poll numbers are slipping. And a lot of you are absolutely steamed over high gas prices and then also feeling that the oil companies are flat-out ripping you off. Well the president is going to engage his Energy and Justice Departments to carryout this four-point plan. Here's what it is. Here's that four- point plan the president will announce later this morning.

He wants to make sure consumers are treated fairly, as in the oil companies aren't gouging you. He wants to promote greater fuel efficiency, although we don't know how yet. He wants to boost the supply of gas in this country. Again, we don't know how. And he wants to make a long-term investment in alternative fuels. As in how much, we don't know yet.

Why is the president doing this now? Take a look at that number. Take a look at it right now, I hope.

Sixty-nine percent of you say high gas prices are making things tough for you. Gaze now at the price of a gallon of regular gas in California, $3.07 a gallon. The average nationwide $2.91.

But before you let your inner skeptic do a number on President Bush, keep this in mind: according to the Power Information Network, in January, February and March, Americans bought big, huge cars at the same rate they did before, eight-cylinder cars that take a lot of gas to run. There are some signs that consumers maybe are going towards smaller cars, but they aren't big signs.

Also, while we may drive less in the short term, it's always the short term, because 1.5 percent -- we're driving 1.5 percent more than we did last year. So really, consumers aren't doing their part either.

M. O'BRIEN: Well, as the price goes up, however, that's likely to change, don't you think?

COSTELLO: Yes, but then the gas prices will fall and we'll go back to driving more than we ever did. So it doesn't solve the problem.

M. O'BRIEN: Well, yes, in theory. Maybe it could be a good argument for a gas tax in all of this to help pay for these alternative fuels.

COSTELLO: We have enough gas taxes, don't you think?

M. O'BRIEN: No, maybe we could have more.

COSTELLO: Maybe.

M. O'BRIEN: We'll see -- Soledad.

S. O'BRIEN: Interesting. I think she's right. I think it's all of the above playing a role in this, I think.

Anyway, moving on to the first full day of deliberations for the jury in the trial of the al Qaeda conspirator, Zacarias Moussaoui, the same jury that decided that Moussaoui was eligible for the death penalty, now they have to decide if he's going to live or if he's going to die.

Let's get right to Kelli Arena. She's got more for us from Alexandria, Virginia.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Jurors will start deliberating once again this morning. They've got a very complicated task ahead of them. That verdict form has 33 questions that need to be answered.

Yesterday, in closing arguments, prosecutors reminded those jurors of all the pain that was caused on September 11th, how Moussaoui showed absolutely no remorse, and, in fact, rejoiced over all the suffering that he saw. And they argued that even if he's behind bars, Moussaoui could kill someone because he's determined to kill Americans.

The defense countered by saying that if Moussaoui is executed, he could be seen as a martyr for al Qaeda. They also mentioned the fact that they believe that he is mentally ill. And they brought up his troubled childhood as possible mitigating factors. And the defense argued that Moussaoui is merely a sacrificial lamb, taking the place of bigger, more involved al Qaeda operatives who have yet to face justice.

The jury has two choices, death or life in prison. Yesterday, as lawyers were heading out, the judge thanked them for all of the time and effort that they put into this case, and she said that she has never seen a defendant more difficult than Moussaoui. As one observer said, it's possibly the understatement of the year.

Kelli Arena, CNN, Alexandria, Virginia.

(END VIDEOTAPE)

M. O'BRIEN: Happening "In America" this morning, in Florida, four teenagers who pleaded guilty to beating a homeless man to death last spring in Fort Lauderdale -- you remember this tape -- will serve long sentences, but not life sentences. The teens are between 15 and 19. The shortest sentence is 22 years. The 15-year-old got 35 years in jail.

Also in Florida, a major four-month-long Internet sting operation nabbed two dozen suspected pedophiles. The suspects were led to a house in Fort Myers with the expectation of having sex with a child. Police say one of the suspects showed up to the house naked.

Jeez.

Police near Naples, Florida, broke up a large cockfighting ring thanks to a mistaken 911 call. Nine people arrested, around 200 birds confiscated. Police came to the house after a couple kids say they accidentally dialed 911. When they arrived, police heard the fights going on behind the home.

And talk about a dramatic entrance. Roger Toussaint is getting his first jailhouse breakfast this morning after a group of supporters crossed the Brooklyn Bridge with him yesterday. The head of the New York Metropolitan Transit Authority Union crossed that bridge last December during a three-day strike on the city's subways and buses. Toussaint was sentenced to 10 days and a fine for initiating that illegal strike last December.

Two NASCAR race fans died after being electrocuted as a racetrack in Talledega, Alabama. They were setting up camp there ahead of next Sunday's race. The men apparently hit an overhead power line while trying to raise a flagpole. Emergency workers couldn't get to the pair until the power company turned off the juice -- Soledad.

S. O'BRIEN: Wow, that's a tough story.

Time to take a look at the forecast this morning. Chad's got that. He's at the CNN Center for us.

Good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning.

(WEATHER REPORT)

S. O'BRIEN: Yesterday was bad. Yes, from the get-go, yesterday was not good.

MYERS: Yes.

S. O'BRIEN: All right, Chad. Thanks.

MYERS: You're welcome.

S. O'BRIEN: Jews around the world today are remembering the six million killed in the Holocaust.

That was the sound three hours ago in Israel when horns announced a two-minute observance. The nation came to a standstill in remembrance of Jews from eastern and western Europe who were tortured and killed by Adolf Hitler during World War II. Finally tonight, as Jews everywhere light candidates for the dead, six torches will be lit by Holocaust survivors at Israel's memorial, which is called Yad Vashem.

A short break. AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

M. O'BRIEN: Checking our top stories for you, the president with a major energy policy speech this morning. He wants an investigation into possible price gouging and manipulation.

In Athens, Greece, riot police hold back demonstrators trying to protest Secretary of State Condoleezza Rice's visit there. She is meeting with the Greek prime minister as part of a five-day European trip.

With the immigration debate raging, some death threats leveled at political leaders in California. The mayor of Los Angeles and the state's lieutenant governor, both Latinos, on the receiving end. Word of those threats announced by the governor yesterday.

Some of the stories we're following around the world.

After days of protests, celebrations now in Nepal. And in France, the end of a hunger strike.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN SR. INTERNATIONAL CORRESPONDENT: I'm Jim Bittermann at a hospital just outside Paris where a French member of parliament is recovering from his hunger strike. He very nearly died in order to save 150 jobs in his home district. Critics say he may have won his battle, but, in fact, he contributed to losing the French war on unemployment.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

SATINDER BINDRA, CNN SR. INTERNATIONAL CORRESPONDENT: Hello. I'm Satinder Bindra in Kathmandu, Nepal. Hundreds of thousands of people are marching into the country's capital. This time, not to protest, but to celebrate.

After three weeks of almost nonstop protests, the country's king, who lives in this palace just down the road, is handing power back to the people. Parliament convenes Friday, and Nepal is soon going to get a democratic government.

(END VIDEOTAPE)

S. O'BRIEN: For more on all these stories, or any of the day's stories, in fact, you can go right to cnn.com.

Developing news out of Iran this morning. Iran warning the U.N. not to impose sanctions, threatening to cut off connections with U.N. observers and to continue nuclear operations in secret.

CNN's Aneesh Raman is one of the only American journalists in Tehran. He joins us by phone in morning.

Hey, Aneesh. Good morning to you.

What do you think about these threats?

ANEESH RAMAN, CNN CORRESPONDENT: Well, Soledad, essentially what we've seen in the past few days is Iran solidifying its position, that its civilian nuclear program is now irreversible, having enriched uranium on their own. And the last option, it seems, really on the table is for inspectors to come into Iran and verify that the country does not deter on to a path towards a nuclear weapon. The country has denied that is its attempt from the start.

Yesterday, we heard from the Iranian president dismiss, really, any notion of sanctions. But today, Iran's top nuclear negotiator said at a -- on Iran's nuclear situation that if the U.N. issues sanctions, Iran will simply cut off ties with the IAEA, the U.N.'s nuclear watchdog. I asked him, "What if they have lesser action, (INAUDIBLE)?" He said any unilateral action, relief (ph) of that, and if there's a military strike on Iran, the country will cease to be transparent and will simply go on with their nuclear program.

It's all routed in fierce pride. Iranians feel that they've finally achieved this nuclear step and they're not going to back down from it -- Soledad.

S. O'BRIEN: And it's all in the context, of course, of the Security Council giving a deadline of Friday for Iran to suspend their uranium enrichment. That deadline certainly doesn't look like it's going to be met -- Aneesh.

RAMAN: Not at all. Iran has no intention of suspending its uranium enrichment. So, the pressure now falls on to Mohamed ElBaradei, the head of the IAEA, the U.N.'s nuclear watchdog, and his report.

There are suggestions the report will not be friendly to Iran. And so, we could see tensions rise further between this country and the West because Iran is showing no signs of making any deal that would involve (INAUDIBLE) the nuclear program -- Soledad.

S. O'BRIEN: Aneesh Raman with our update out of Tehran this morning. And again, Aneesh one of the few American journalists able to report from Iran today.

Thanks, Aneesh.

Still to come on AMERICAN MORNING, a high school in lockdown after a very dangerous hostage situation there. We're going to tell you about that coming up next.

And then later, the defense revealing some of its strategy in the Duke rape case.

Those stories ahead on AMERICAN MORNING. We're back right after this short break.

(COMMERCIAL BREAK)

M. O'BRIEN: Good morning, Philadelphia. WPVI with that excellent shot there.

S. O'BRIEN: It's a beautiful shot, yes.

M. O'BRIEN: The City of Brotherly Love looking nice today. But I don't know that for a fact. Is it nice there?

S. O'BRIEN: Yes. I think it's in the 70s, looking at temperatures today.

M. O'BRIEN: You've been paying attention to Chad.

S. O'BRIEN: I try to pay attention. We're only 47 minutes into the show. You know?

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Something about David Bowie going out throughout the whole city there?

S. O'BRIEN: Yes. It's all good. Kumbaya, everybody.

SERWER: Wow. Feeling that love.

S. O'BRIEN: I love you guys.

SERWER: Feeling that love.

S. O'BRIEN: Let's take a look what's happening "In America" this morning.

In North Carolina, a 17-year-old high school student has been arrested. Police say he held a teacher and another student hostage for an hour yesterday. He fired a shotgun, too. Nobody hit, though. Police say they didn't know why the boy took hostages.

A battle for control of the largest Hassidic Jewish sect in the U.S. Rabbi Moses Teitelbaum died on Monday in New York. He was 91 years old. The question now is, which of his two sons are going to take his place? They've been feuding over the future of the sect.

And a very close look, kind of scary look at a massive tornado. Take a look at this.

A news chopper caught these dramatic pictures near El Reno, Oklahoma. That's when you fly the chopper the other direction.

M. O'BRIEN: One would think that would be the good way to go.

S. O'BRIEN: One would think. You don't want to see a shot like this up close. It's all part of a storm that sliced right through the central and northern parts of the state. The storm damaged some of the hangars at the El Reno airport.

When our severe weather expert, Chad Myers, talks about the golf ball-sized hail, we'll take a look at that. There it is. It's not the one in the middle. That's an actual golf ball, Miles.

Despite all the stormy weather, no injuries, remarkably enough, reported. I mean, gosh, truly, that could kill you getting hit by one of those. It goes right through your car.

M. O'BRIEN: Yes. Yes.

Does it ever hail nine irons or drivers? It's just -- it's always golf balls.

SERWER: Sometimes softballs.

M. O'BRIEN: Yes. OK. Got you.

Deep Throat speaks. The man who helped a pair of young "Washington Post" reporters to a series of exclusive stories and eventually the unraveling of the Nixon presidency in an exclusive sit- down with Larry King tonight. Of course we know who he is now. His name is Mark Felt. And here's an expert of that interview.

(BEGIN VIDEO CLIP)

LARRY KING, HOST, "LARRY KING LIVE": Did you ever during all this time -- were you ever tempted to tell anyone?

MARK FELT, "DEEP THROAT": No.

KING: Never?

FELT: Never.

KING: Did your family know?

FELT: No, they didn't know either.

KING: Your daughter didn't know?

FELT: No.

KING: How did you do that?

FELT: Just maneuvered round and about.

KING: What about when you -- when you would read in the papers, this person's "Deep Throat" or that person's "Deep Throat" or...

FELT: I'd clip it and put it in a book.

KING: You saved items?

FELT: Yes.

KING: About who "Deep Throat" might be?

FELT: Yes.

(END VIDEO CLIP)

M. O'BRIEN: The full interview is tonight. Watch Larry King every night at 9:00 Eastern Time. And we want you to tune in tonight to see that. That will be fascinating. A little piece of history there.

Andy Serwer is here.

How are you, Andy?

SERWER: I'm doing just fine. Talking about the AARP this morning doing more than just offering magazine discounts. We're going to tell you about that. Here's a hint: get ready to roll over your IRA.

Plus, amazon.com gets in the TV business. It's not what you think.

Stay tuned -- coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

(MUSIC)

S. O'BRIEN: Waking up with a little Cat Stevens this morning.

M. O'BRIEN: No (INAUDIBLE) sky.

S. O'BRIEN: Yes, that's right. Remember that?

SERWER: Right. He landed in Maine. And then they sent him back to the U.K.

M. O'BRIEN: A quick trip back.

S. O'BRIEN: Yes. Turnaround back.

SERWER: Yes. He want to sing "Peace Train," so it was a real threat.

S. O'BRIEN: Let's move on and take a look at some of the stories we're working on for you this morning.

President Bush set to deliver what the White House is calling a major speech on gas and energy.

A deadly terror attack kills as the least 23 people in Egypt.

Police stop a student's plan to kill more than a dozen classmates. At least that's what they're saying in Washington State.

Jury deliberations are under way in the Zacarias Moussaoui trial.

And tornadoes touched down in Oklahoma. Take a look at these pictures. A lot of damage. So far, though, no reported injuries.

Those stories are all ahead.

M. O'BRIEN: That's quite a picture.

S. O'BRIEN: Yes. Pretty amazing picture.

Let's talk about retirement. Let's talk about retirement.

SERWER: Yes.

S. O'BRIEN: Let's talk about retirement, shall we?

SERWER: How soon can we get there?

M. O'BRIEN: I was hoping about noon.

S. O'BRIEN: This is kind of a weird story -- maybe 10:00 a.m. if you're lucky.

Why would the AARP be involved in the business end of retirement?

SERWER: Well, because they're looking to make a little coin here.

S. O'BRIEN: Oh.

SERWER: And, you know, the AARP is obviously the most powerful lobbying group in the United States. I think you can say that unassailably.

Thirty-five million members. And the AARP has been looking to get into sort of other businesses.

Now they're moving squarely into the business of financial services, getting into selling mutual funds for those of us 50 years old and older. And why not? It's a very affluent group.

They've already been in the business of financial service a little bit, insurance, credit cards. And this is my favorite. Do you know that they offer motorcycle insurance? Isn't that great that the AARP offers motorcycle -- a lot of seniors riding bikes these days.

M. O'BRIEN: I think that's wonderful.

SERWER: So, I guess it's a good thing.

M. O'BRIEN: Bungee jumping insurance? Do they do that, too?

S. O'BRIEN: My dad rides a motorcycle.

M. O'BRIEN: He does?

S. O'BRIEN: Yes, he does.

M. O'BRIEN: Is he a Harley guy?

S. O'BRIEN: He's 70 years old. Sure -- yes.

SERWER: And are you guys members of the AARP, by the way?

S. O'BRIEN: Yes, I am.

M. O'BRIEN: Oh, stop it.

SERWER: You are?

M. O'BRIEN: That's a trick question. That's a trick question.

SERWER: You don't have to be over 50. In fact, I know someone who is in their 20s who joined.

You're an associate member. You don't have all the full benefits of membership, but you can join when you're any age.

M. O'BRIEN: What does that get you?

SERWER: Nothing.

M. O'BRIEN: A discount on Depends? I mean, what is...

(CROSSTALK)

SERWER: You have a little card.

And then we want to move on to this other story about amazon.com. They're getting into the business of offering DVDs of television shows, signing a deal where they will be offering these DVDs as soon as 24 hours after a show has aired. One of the networks they signed with is NBC.

At first, though, they're just going to be selling DVDs of niche programming like the Westminster Kennel Club Dog Show.

Look. Always an excuse to roll this out.

Remember when Rufus won?

M. O'BRIEN: Yes.

SERWER: And remember two years ago when Josh won? So, you can buy Josh, the big black Newfoundland.

S. O'BRIEN: Remember Josh, the big...

SERWER: You can go back and buy vintage programming like that. Also...

M. O'BRIEN: It doesn't get better than that.

SERWER: That's not Josh.

S. O'BRIEN: No, Josh is way bigger than that.

SERWER: Josh is big. Josh...

M. O'BRIEN: That's a pretty...

S. O'BRIEN: I interviewed that dog once.

SERWER: It was a pretty good interview, actually.

M. O'BRIEN: It was a dog of an interview.

SERWER: No, not bad.

M. O'BRIEN: You were barking up the wrong tree.

SERWER: I love that stuff.

M. O'BRIEN: I wish they had a mutt show so Annie (ph) and Peanut (ph) could be a part of it. S. O'BRIEN: I know, yes. That would be funny.

M. O'BRIEN: Wouldn't that be good?

SERWER: No.

M. O'BRIEN: No. Bad idea.

SERWER: But anyway, they're going to actually at some point have, you know, shows that aired the night before. So they're going to be competing with iTunes and then competing with ABC, that's going to be doing on their Web site. It's all about changing things up.

S. O'BRIEN: Maybe we'll see if they ever have a delivery system where Amazon could just somehow, you know, send it to you electronically.

SERWER: Right.

S. O'BRIEN: As opposed to having...

SERWER: To order it.

(CROSSTALK)

S. O'BRIEN: Which, of course, loses the whole point of getting it within the next 24 hours.

M. O'BRIEN: I bet they're working on it.

SERWER: I bet you they are, yes.

S. O'BRIEN: Yes.

SERWER: And get those old dog show DVDs. That's what I want.

S. O'BRIEN: Thank you, Andy. We'll get you one.

SERWER: OK. Thanks.

M. O'BRIEN: We need to get you a dog. Obviously, you...

SERWER: Yes.

M. O'BRIEN: You've got a soft spot for hounds.

SERWER: Hound dogs.

M. O'BRIEN: Let's check in with Chad Myers at the weather center.

How are you?

MYERS: Hey, Miles. I've got a question for you.

M. O'BRIEN: Yes, sir? MYERS: You probably watch a little New York news. Did they ever find that whippet that was missing?

M. O'BRIEN: No.

S. O'BRIEN: No, not yet.

MYERS: They never found that dog.

M. O'BRIEN: Vivi is still on the loose in Queens somewhere. And what we -- we should probably do a little follow-up on that. There were some apparent sightings.

S. O'BRIEN: Right. Right.

M. O'BRIEN: And there's reasonably, if she's still out there, living, you know, call of the wild style.

S. O'BRIEN: And then they decide to sit down and see if they could wait her out and find her. But...

SERWER: They should get a psychic or something.

S. O'BRIEN: I'm sure they thought of everything.

M. O'BRIEN: They did.

SERWER: They did?

M. O'BRIEN: Yes -- they absolutely did, yes. They had a psychic, they had a couple of thumb paws? Remember the dogs that were...

SERWER: Thumb paws.

M. O'BRIEN: Remember that?

SERWER: All right.

M. O'BRIEN: All right.

S. O'BRIEN: You know, you always go there.

(LAUGHTER)

MYERS: I'm just so glad that I'm in Atlanta, because, Soledad, if I was sitting next to him...

Good morning.

S. O'BRIEN: I never physically injure him. Don't worry.

MYERS: Good morning.

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