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American Morning

Economic Impact of 'Day Without Immigrants'; Nuclear Threat; In the Race?

Aired May 02, 2006 - 06:30   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: And because there are just 30 days to go before hurricane season begins, New Orleans Mayor Ray Nagin is announcing his 2006 hurricane plan. He's going to talk about things like evacuating the city, how to prepare for another storm like Katrina.
Apparently, though, the plan doesn't include using a big megacenter like the Superdome as a shelter. Also, the plan relies pretty heavily on using buses to carry people out of the city.

CNN is going to carry his announcement live at 12:30 Eastern.

Stay with CNN. We're your hurricane headquarters.

A short break. We're back in just a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: Checking our top stories this morning, the formal internal watchdog for Homeland Security says the agency is not doing such a great job. Clark Kent Ervin charges in a new book that security problems still exist at airports and along the borders, as well, and in mass transit, too.

The jury deliberating the life-or-death fate of al Qaeda operative Zacarias Moussaoui resumes deliberations this morning. The jurors have now deliberated for almost 30 hours.

And a new CBS poll is showing that more than eight in 10 Americans don't think the president has a clear plan for keeping gas prices down.

We're going to talk about all those things ahead this morning.

Welcome back. I'm Soledad O'Brien.

MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien. We're glad you're with us.

It is the day after the so-called "Day Without Immigrants," and now the question, what was the political and economic impact? A million immigrants and other supporters of amnesty skipped work and took to the streets yesterday.

Gary Nurenberg is live now in Washington with an assessment of how it all went -- Gary. GARY NURENBERG, CNN CORRESPONDENT: Well, good morning, Miles.

You know the numbers. There are an estimated 11.5 million undocumented immigrants in the United States. Yesterday's rallies were designed, in part, to show how much they mean to the American economy.

(BEGIN VIDEOTAPE)

NURENBERG (voice over): More than 300,000 on the streets of Chicago not at work or school. Thousands waving flags in Manhattan. Four hundred thousand at a march in Los Angeles saying they want what all immigrants to America have desired for all generations.

MAYOR ANTONIO VILLARAIGOSA (D), LOS ANGELES: We want the same thing. We want a better life for our children.

NURENBERG: Organizers originally planned a day where immigrants would demonstrate their impact on the American economy by not going to work and not buying things.

MARIA ELENA DURAZO, L.A. FEDERATION OF LABOR: Immigrants work hard every day in every industry that you can think of.

NURENBERG: Some businesses did close. Some schools reported high absence rates. But the American economy was not shut down. Some border crossings were temporarily closed because of demonstrations. A proposal to secure the border by building a 700-mile-long fence...

SEN. BILL FRIST (R-TN), MAJORITY LEADER: We have failed miserably. Our borders are porous.

NURENBERG: ... helped prompt Monday's demonstrations, which were also designed with the hope...

NATIVO LOPEZ, ORGANIZER: Today's movement translates into augmented voter power and voter conscientiousness and a voting bloc.

NURENBERG: But not all immigrants agree.

COL. ALBERTO RODRIGUEZ, U.S. ARMY (RET.): We're all here today to tell those illegal protesters, you do not speak for me.

(END VIDEOTAPE)

NURENBERG: Immigration reform remains stalled here in Washington with sharp divisions between the House and the Senate. One of the key reasons for yesterday['s demonstrations is to demonstration political clout and have an impact, Miles, on that deadlock.

M. O'BRIEN: Gary Nurenberg in Washington.

Thank you very much -- Soledad.

S. O'BRIEN: You can certainly expect people in West Virginia to be watching very closely when public hearings into the disaster at the Sago Mine begin today. The hearing's going to look into causes of the explosion that trapped 13 men. Only one of the miners, you'll recall, survived. Also, they're going to hear testimony on how the mine owner handled the emergency.

And some new developments to tell you about for the Duke lacrosse team. A decision, too, on the future. There will be a next season. A university committee says, while they found a pattern of misconduct, it's not enough to warrant elimination of the team for good.

Listen.

(BEGIN VIDEO CLIP)

PROF. JAMES E. COLEMAN JR., DUKE UNIVERSITY: We did not find racist behavior. We didn't find, you know, sexual assaults. We didn't find, you know, harassment.

That was not the nature of the misconduct. And so, in our judgment, based on the record that we reviewed, it didn't warrant suspension or termination of the program. The conduct of the lacrosse players did not differ from the misconduct of other Duke students who drink too much and unfairly impose upon their neighbors.

(END VIDEO CLIP)

S. O'BRIEN: Here's what they found in the committee report. They found a large number of players were socially irresponsible, that the players need strict monitoring because of those alcohol-related problems. The report, though, also said the team performed well both athletically, and academically, too.

The Duke case will no doubt me the main thing on the minds of voters in Durham today. District Attorney Michael Nifong, who is in charge of prosecuting the case, is seeking another term. He's facing two challengers for his D.A. job -- Miles.

M. O'BRIEN: Happening "In America" this morning, a female corrections officer is free after a harrowing six-hour hostage ordeal. An inmate serving a life sentence seized the woman at the Arizona State Prison Complex near Tucson. He demanded a transfer to Montana, then gave himself up. The corrections officer unhurt.

A man is free this morning after 18 years in prison. Drew Whitley's life sentence for murder reversed by new DNA evidence. He walked out of court in Pittsburgh yesterday with a message for those who may have been wrongly convicted.

(BEGIN VIDEO CLIP)

DREW WHITLEY, FREED BY DNA EVIDENCE: Keep hope alive. Don't never give up on hope. And always remember, tough times don't last. Tough people do.

(END VIDEO CLIP)

M. O'BRIEN: Convicted sniper John Muhammad having trouble finding jurors who don't believe he's guilty. Muhammad is now defending himself in a second trial. This one in Maryland. Jury selection now under way. So far, they have just 21 candidates eligible to sit on a jury for the 2002 D.C. area sniper killing spree.

Kennedy cousin Michael Skakel wants a new trial. Skakel sentenced to 20 years in prison for the beating death of a teenage neighbor back in 1975, but his lawyers say two other men are responsible. The claim reportedly comes from a cousin of basketball star Kobe Bryant. Prosecutors are skeptical of the story.

And remember this scene? A rare Ferrari Enzo crashed in Malibu. It was a 160-mile-an-hour crash. Only 400 of the cars were ever made.

Well, a Swedish businessman is accused of stealing this car and two others. The judge has now ruled there's enough evidence for the case to go to trial.

We'll keep you posted.

S. O'BRIEN: That was such a -- it's one of those cases that there are twists and turns at every corner.

M. O'BRIEN: In so many ways, twists and turns on that one, yes.

S. O'BRIEN: Yes. And some -- and some not taken so well, ending up in a big crash.

M. O'BRIEN: No. Exactly.

Coming up, world leaders meet in France to figure out what to do about Iran and its nuclear program. We'll go to Paris and Tehran.

S. O'BRIEN: Also ahead this morning, will those huge protests of yesterday affect immigration reform in Congress?

And what about that $100 gas rebate? We're going to talk to Senate Majority Leader Bill Frist about both those topics just ahead this morning.

M. O'BRIEN: And it looks like Rudy Giuliani may be testing the waters for a White House run in 2008. We'll tell you about his trip to Iowa. Why else would he be in Iowa?

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

(COMMERCIAL BREAK)

S. O'BRIEN: Members of the U.N. Security Council are meeting right now in Paris about Iran's nuclear program. The council members are concerned with Iran's refusal to halt uranium enrichment.

Correspondent Jim Bittermann is attending that meeting.

(BEGIN VIDEOTAPE) JIM BITTERMANN, CNN CORRESPONDENT: One of the things that's going to be interesting to see today is how united exactly everyone is. This meeting that's taking place is basically taking place behind closed doors. It's the senior political directors of the five permanent Security Council members, as well as Germany, which has been involved -- Germany has been involved from the very beginning in talks with Iran. So they've been included as well.

And basically, these are -- for instance, the -- this case in the United States, it's Nicholas Burns, who's the number three man at the State Department. What they're going to do is talk about exactly what kind of common ground they can find in taking action, any kind of action against Iran. From the United States' point of view, there seems to have been some backing off from what was originally a lot of very tough talk from Washington about taking measures that would lead to sanctions and lead to, perhaps, even military actions at some point.

What the U.S. is talking about now, what we're hearing out of Washington, basically, is taking some action under the U.N. Charter's Chapter 7. And what that sort of does is lay the groundwork for any possible sanction or military action, but does not actually go so far as to implement any kind of sanction against Iran.

(END VIDEOTAPE)

S. O'BRIEN: That was Jim Bittermann reporting this morning -- Miles.

M. O'BRIEN: Still to come on AMERICAN MORNING, the future of Duke's lacrosse team and rape allegations. We'll tell you about a new report released by the university. They say the games should go on.

S. O'BRIEN: And is former New York City mayor Rudy Giuliani making a go of it for 2008? We're going to examine his latest moves just ahead on AMERICAN MORNING.

We're back in a moment.

(COMMERCIAL BREAK)

M. O'BRIEN: That's Charleston, South Carolina.

Good morning, Charleston. Hope you're having a good day there.

Checking our top stories this morning.

Underage drinking and unruly behavior may characterize the Duke University lacrosse team, but it's not enough to warrant pulling the plug. A university report on the team says the games should go on.

The ACLU filing a lawsuit in Kentucky to stop the law that prevents protesters from disrupting funerals for soldiers killed in Iraq and Afghanistan.

And primary day in Ohio. One high-profile race to tell you about, the Republican gubernatorial primary between Secretary of State Kenneth Blackwell and Attorney General Jim Petro -- Soledad.

S. O'BRIEN: Former New York City mayor Rudy Giuliani pretty coy about his prospects in 2008, but he is front and center in 2006 with a helping hand for his fellow Republicans.

CNN Senior Political Correspondent Candy Crowley has more from Davenport, Iowa, this morning.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Another day, another fund-raiser for a bit of a Republican rock star. America's mayor, they call him, Rudy Giuliani, will be in Washington this evening helping raise money for Republican senatorial candidates. It's the end of a trifecta for Giuliani, who Sunday helped raise money for Arnold Schwarzenegger's gubernatorial campaign, but Monday was here in Iowa raising money for two Republican candidates.

Of course, Iowa is home to the first caucuses in the nation in any presidential year, raising a lot of questions about why Giuliani specifically picked Iowa. He says, look, his first goal right now is to help keep a Republican House and a Republican Senate, a goal he says is doable. But the questions, of course, were, what about 2008?

Giuliani, of course, has a number of issues, abortion, gay rights, gun control, in which he is at odds with the core of the party. But when asked that particular question, he says, "Look, it's a big party." Asked if he's planning on running in 2008, Giuliani openly admits he's thinking about it, but he says he's not going to make any decisions between now and the 2006 elections. What he's doing now, he says, is listening and a little bit of talking, seeing if it would be viable for him to run for president in 2008.

Candy Crowley, CNN, Davenport, Iowa.

(END VIDEOTAPE)

S. O'BRIEN: Candy Crowley reporting for us this morning.

For more of our top political coverage, be sure to log on to cnn.com/politics.

Andy is "Minding Your Business" just ahead.

What are you looking at this morning? Good morning.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Soledad, good morning to you.

Remember when yesterday we told you about that CEO who ended up with $1.6 billion of stock options. Well, we'll give you an update on him.

Plus, great news for carnivores this summer.

We'll explain coming up next on AMERICAN MORNING. (COMMERCIAL BREAK)

S. O'BRIEN: Welcome back.

A look now at some of the stories we're working on for you this morning.

A university committee finds a pattern of misconduct by Duke's lacrosse team.

A former Homeland Security insider says the U.S. has failed to fix security problems at airports and all along the border.

A new report says the U.S. just missed capturing one of the most wanted terrorists, Abu Musab al-Zarqawi, a little over a week ago.

And we'll check in with Senator Bill Frist about how yesterday's protests will affect immigration reform in Congress, and also about gas prices.

Plus, Anna Nicole Smith wins her case in the Supreme Court. Doesn't get the money yet. We're going to explain.

Business news now.

Top executives taking some big pay and benefit cuts. Not the guy you told us about yesterday, though.

SERWER: It is -- well, it's a guy that doesn't get any more. But not that he needs any more.

M. O'BRIEN: Well, capping at $1.6 billion, that is...

S. O'BRIEN: That's a nice cap.

M. O'BRIEN: ... you know, that's a -- yes.

SERWER: It's a really difficult situation for him.

M. O'BRIEN: We are cracking down on pay.

SERWER: Yes. Boy, I'll tell you.

M. O'BRIEN: No more than $1.6 billion.

S. O'BRIEN: What does that work out to? Seriously, somebody calculate this now, $1.6 billion. Do the math on what that is per day, just for showing up.

SERWER: I think he was there for 15 years. So we'll get back to you on that one.

S. O'BRIEN: OK. I want to know that.

M. O'BRIEN: That's a lot of math.

S. O'BRIEN: Yes.

SERWER: All right. We're talking about this guy, William "Show Me the Money" McGuire, the CEO of UnitedHealth Group. Yesterday we told you he ended up with a pay package, a stock option trove, I should say, of $1.6 billion. And guess what? The board decided that's enough.

They're dialing back his pay and his comp and his perks and his stock options. He's not allowed to get any more.

And get this, the board is taking a 40 percent pay cut after a 20 percent pay cut in 2005, which kind of makes you wonder how much money were those guys getting? It sounds like a pretty good place to work overall.

Moving on to another story we're following this morning, and this has to do with barbecuing this summer. If you're interested in that, this is some good news, because the prices for beef and pork are plummeting. Three year lows. Four-year flows for chicken.

And this is all because of some macro-economic developments going on. Production of meat has gone up over the past several years, mostly to do with the protein craze and those diets.

Meanwhile, exports of beef and chicken in particular are down because of fears of mad cow and avian flu. So all that means good news for people who like to throw things on the barby this summer. Chicken leg quarters, 20 cents a pound.

Now, I love this quote. We're always seeing it on some major chicken, beef and pork items, attractive prices. That's an economist for the Livestock Marketing Information Center. Pretty darn attractive through the balance of the year.

S. O'BRIEN: I like attractive.

SERWER: I do. I like being a meat economist myself. That's a good job. We'll be talking about jobs later on in the program.

M. O'BRIEN: I love it when you say "macro-economics," you know?

SERWER: Do you?

M. O'BRIEN: Yes. I feel like we're learning something. That's good.

SERWER: Well, that's good. I like talking about, you know, chicken prices here every once in a while. Not on a weekly basis. We don't like to track that. But it's some good stuff.

S. O'BRIEN: All right. Andy, thank you.

M. O'BRIEN: Thank you, Andy Serwer.

SERWER: Thank you. M. O'BRIEN: No break from global warming. Greenhouse gases have increased. The government reporting more carbon dioxide from cars and power plants went into the air in 2005 than in 2004.

Meanwhile, 10 states and two cities are suing the federal government, saying they're not doing enough. Those 10 states including New York City and Washington, D.C., as well. They say they're not doing enough -- the government is not doing enough to limit emissions that lead to global warming.

I'm not sure what that picture of smog has to do with that, but whatever.

China, meanwhile, says the roof is leaking, the roof of the globe is leaking. The glaciers in Tibet and the Himalayas, the so-called roof of the world, are melting, and that will lead to droughts and greater sandstorms in that region.

You're looking at satellite imagery of the Tibetan Plateau, the Himalayas.

Global warming is also related, of course, to all kinds of weather patterns, including stronger hurricanes and intense heat waves, which brings us to Jacqui Jeras, in for Chad.

Hello, Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Hey. We've got none of that today, Miles.

(WEATHER REPORT)

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: I'm Ed Henry at the White House. Another day, another Bush official calling the energy problem a crisis. I'll tell you who and what it means for the midterm elections.

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