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American Morning

E. Coli Outbreak; Ford Buyouts; Terror Suspect Split; Violence in Iraq

Aired September 15, 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: Good morning to you, it is Friday, September 15. I'm Miles O'Brien.
CAROL COSTELLO, CNN ANCHOR: Happy Friday to you. I'm Carol Costello in for Soledad.

Here's a look at what's happening this morning.

O'BRIEN: Across the country today, health officials warning people not to eat bagged spinach, that's because it's now linked to a deadly E. coli outbreak in eight states. About 50 cases reported, including one death in Wisconsin.

COSTELLO: An hour from now, a major announcement expected from the Ford Motor Company. The UAW says Ford will offer buyouts to 75,000 employees. The plan is geared to help the troubled automaker start making money again.

O'BRIEN: Later today, Congressman Bob Ney expected to plead guilty in connection with the Jack Abramoff bribery scandal on Capitol Hill. The Ohio Republican would be the first lawmaker to do so. For months, Ney has been denying wrongdoing.

COSTELLO: In Yemen this morning, authorities say they foiled two attempted attacks on oil facilities. Officials say suicide bombers tried to blow up a refinery and a storage center during early morning shift changes. The two attackers were killed.

O'BRIEN: Firefighters north of L.A. desperately trying to contain a huge wildfire. They're hoping to do it before the weekend. In the forecast, Santa Anna winds and dry conditions expected to fuel the flames.

COSTELLO: And Tropical Storm Helene is expected to become a Category 2 hurricane by Monday. But right now, Helene is slowly moving west in open water over the Atlantic with maximum sustained winds of 45 miles an hour.

But let's go to the man who knows more about Helene than I do.

Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol. Good morning, Miles.

Way out in the middle of nowhere. And if it isn't nowhere, I know you can see nowhere from there, because there is the Cape Verde Islands, there is the Leeward Islands and there is the storm. It does look a lot more impressive, though, this morning. Has some of the banding, has some of the buzz saw kind of look to it.

Now here is Gordon still a big storm. Good thing it didn't hit Bermuda because that was a much bigger storm than was Florence. Here goes Gordon taking a big right-hand turn on up toward, actually toward Europe. And it will affect Europe, not as a tropical system because the water is too cold there, but certainly will affect it as a low pressure system as it rolls over the European continent.

Tuesday there is 85-to-90-mile-per-hour storm, that is Helene, but it's still nowhere. You can see it from there anyway.

Scattered showers and thunderstorms along the Mexican West Coast, the same path that John took not that long ago, but this storm appears to be missing Cabo San Lucas and into the Gulf of California. Remember what that cone means though, it could be one side of that cone or the other. Right now Tropical Storm Lane not that significant, but it is forecast to become a hurricane later today.

(WEATHER REPORT)

Too bad it's not leaf peeping time just yet. Are you seeing any colors up there yet, guys?

O'BRIEN: Not a peep.

C. MYERS: No.

O'BRIEN: Not a peep of peeping yet.

C. MYERS: OK.

O'BRIEN: Not yet. All right, we'll keep you posted on that, though.

C. MYERS: OK.

O'BRIEN: Thank you, -- Chad.

C. MYERS: You're welcome.

O'BRIEN: Forget what your mother says, don't eat your spinach. Fresh bagged spinach the source of a significant outbreak of deadly E. coli all across the country this morning. So far about 50 people in eight states diagnosed with the intestinal disease. The illness killing one person in Wisconsin.

Brendan Conway of our CNN affiliate WISN in Milwaukee with more.

(BEGIN VIDEOTAPE)

BRENDAN CONWAY, WISN-TV REPORTER (voice-over): A deadly nationwide outbreak of E. coli illness sparks federal health officials into action. During a conference call with reporters, the FDA announced they have 50 confirmed cases, including 20 right here in Wisconsin.

DR. DAVID ACHESON, FOOD & DRUG ADMINISTRATION: I would describe this outbreak as significant.

CONWAY: According to the FDA, since August 23 eight people have been hospitalized with E. coli illness, while one person from Wisconsin is dead. People are getting sick from store-bought prepackaged spinach. So far the FDA has not linked the illness to any brand or grower. So to be safe, they are urging people to throw away any spinach they have left at home.

ACHESON: We are not advising people to cook a product that may have E. coli 157 in it. What we're advising people is don't eat it.

CONWAY: The FDA says they were alerted Wednesday to the problem by Wisconsin health officials who are seeing twice as many cases as any other state. And it could be the tip of the iceberg. During a late-night press conference, Bevin Baker, the city's Health Commissioner, announced that out of 20 cases in the state, 12 people have been hospitalized, including 4 with serious liver failure.

BEVIN BAKER, HEALTH COMMISSIONER: That's a very serious illness, and it could lead to possible deaths.

(END VIDEOTAPE)

O'BRIEN: That was Brendan Conway of our affiliate WISN reporting.

Our senior medical correspondent, Dr. Sanjay Gupta, will have much more on this next hour -- Carol.

COSTELLO: Ford cutting a dramatic deal with its union as it tries to cut costs.

Carrie Lee is covering that story.

This is going to affect 75,000 workers.

CARRIE LEE, CNN CORRESPONDENT: A lot of people, Carol. We're getting some more details on this. Ford now offering buyouts to 75,000 workers, trying to turn around their North American operations. The deal is this, they will offer $35,000, one-time payout here, for workers with 30 years of service and they'll also offer some other special early retirement and pre-retirement plans. Now no one is going to be involuntarily separated from Ford.

Well, at least one worker is looking on the bright side.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I think a lot of people are going to take it. And it's going to give people an opportunity and an option to do something other than, you know, work for Ford Motor Company, which is awesome.

(END VIDEO CLIP)

LEE: Of course the big picture here, Ford looking to cut costs, slow losses. Now we'll get some more details from the company on its Way Forward Plan later today, the board coming together again. Now that plan has already called for 30,000 job cuts and the closure of 14 plants, but not enough to cut costs enough, because losses are mounting. According to some estimates, the company could lose as much as $9 billion this year.

And they're reportedly considering some other options, including perhaps the sale of the credit arm, the Jaguar unit, but they reportedly will hold onto their Mercury brand, and Carol, the other eight brands. So getting some more details today, but 75,000 jobs, that's a huge number.

COSTELLO: Well, and the buyout packages probably are very attractive to kind of persuade people to go along with it.

LEE: If some people want to do something else. Thirty-five thousand dollars, not a whole lot of money, but you know if somebody wants to do something else with their career, well this could be a good opportunity for them to make that transition.

COSTELLO: Carrie Lee, thanks.

LEE: OK.

O'BRIEN: "Security Watch" now. Closing a gap in airline security, the government ordering airlines to screen packages dropped off for shipment at ticket counters, just like other baggage. The packages to be checked for explosives effective immediately. The order does not affect the vast majority of cargo carried by airlines, which is subject only to random inspections.

And there could be stepped-up screening of cargo coming into U.S. ports. Right now Customs checks containers on arrival. The Senate approving a measure requires screening before cargo gets into the country. A thousand new agents to be hired overseas at ports where freight destined for the U.S. is loaded -- Carol.

COSTELLO: In Washington, the standoff over the treatment of terrorism suspects is becoming more than just a political distraction for the Republican Party. The latest arguments by President Bush and his critics are talking about how America should fight the war on terror.

Congressional correspondent Dana Bash is covering the story.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (on camera): It's not something you'd expect less than two months before an election where Republicans are running on national security. A small group of senior Republican senators defying the president and passing a measure out of the Armed Services Committee on how terror detainees are treated, a measure that the president is vowing to block. Now the biggest source of contention is how the U.S. will interpret or define Article Three of the Geneva Conventions, which sets international standards for how prisoners of war are treated. The White House wants greater leeway in how they interrogate suspects. The Senate measure gives prisoners more rights.

Now this set off a stunning public display of Republican division on this issue. And the president's former Secretary of State, Colin Powell, even fired off a letter saying he disagrees with Mr. Bush. He said that the Bush proposal would put U.S. troops in risk and -- quote -- "The world is beginning to doubt the moral basis of our fight against terrorism." The current Secretary of State, Condoleezza Rice, fired right back and said that Mr. Bush's proposal would clarify what she called "a vague international treaty."

Now this is not the kind of internal party fight that any Republican wants to have right now. But both sides in this case insist that this is a matter of principle, not politics. And in this case, both sides say they're right.

Dana Bash, CNN, Capitol Hill.

COSTELLO: And stay tuned to CNN day and night for the most reliable news about your security.

O'BRIEN: Happening in America.

In Nashville, Tennessee, a convicted murderer who escaped from a psychiatric ward 30 years ago back behind bars this morning. Thomas Ball lived as a law-abiding business owner under another name for the past three decades. Marshals tracked him down after he filed for government aid when his wife died last year.

In Texas, the family of former Governor Ann Richards announces plans to remember the charismatic Democrat. Her body will lie in state in the Capitol Rotunda on Saturday and Sunday in Austin. A public funeral will be held noon Monday. Burial will be private.

In California, a memorial service scheduled tomorrow for Pat Corley. He's best known for his role as Phil the bartender on "Murphy Brown." Corley died Monday from congestive heart failure. He was 78.

Tennis stars Venus and Serena Williams in Florida court. They were ordered to turn over tax returns to prosecutors on Thursday. Prosecutors trying to show Venus and Serena lied about their father's involvement in their careers. Part of a multimillion-dollar breach of contract lawsuit for pulling out of a tournament in 2001.

Toes a tapping at the White House last night. More than a dozen jazz artists performing for the president and the first lady. It was in honor of the 20th anniversary of the Thelonious Monk Institute of Jazz.

COSTELLO: I can see why the toes were tapping.

O'BRIEN: Yes. COSTELLO: Still to come, American troops attacked. The busiest combat hospital in Iraq fights to save 25 lives and CNN cameras are on the scene exclusively.

And the CIA leak case. Robert Novak waited three years for his source to back him up. Now he's telling a different story about the conversation that started it all.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: Happening this morning.

A Republican showdown over terror detainees, the GOP-controlled Armed Services Committee has defied President Bush. It approved a measure that gives suspects more protection than the president wants.

New video this morning of Cuban President Fidel Castro embracing Venezuelan President Hugo Chavez. Still no word on whether Castro will appear at the international summit going on right now in Havana. He's recovering from intestinal surgery. He had that back in July.

And hundreds of Spanish troops are arriving in Lebanon right now. They'll help U.N. troops enforce the cease-fire between Hezbollah and Israel.

O'BRIEN: Now to Iraq where this morning two more American soldiers are dead after more insurgent attacks. A roadside bomb killing one in Baghdad, another killed by enemy fire in the Al Anbar Province west of Baghdad. These attacks coming just after an American outpost in Baghdad was hit by a suicide truck bomb.

CNN's Cal Perry was at the hospital when the wounded started pouring in. It's a story you'll see only on CNN.

(BEGIN VIDEOTAPE)

CAL PERRY, CNN CORRESPONDENT (voice-over): A mass casualty situation. Many wounded on the way. We had gone to the busiest combat hospital in Iraq with a plan to cover the U.S. military's grim milestone. We had been at the hospital only about an hour. Bloodied and screaming U.S. soldiers stream into the combat hospital, 25 in total, many fighting for their lives.

It had been a truck bomb attack on a 4th Infantry Division fixed position in Baghdad. The U.S. soldiers had apparently been caught off guard. Some of the wounded arrive wearing sneakers rather than their usual combat gear.

Even as the casualties were still coming, Major General James Thurman slips in. He's the commander of the 4th Infantry Division here to comfort and console his men.

MAJ. GEN. JAMES THURMAN, COMMANDER, 4TH INFANTRY DIVISION: Is he going to be OK? UNIDENTIFIED MALE: He's going to be fine, sir.

PERRY: In this war it's a question, is he or she going to be OK, that has been asked nearly 23,000 times. The answers have not always been what families wanted to hear. Close to 2,700 U.S. soldiers killed, 20,000 wounded, with more than 9,000 unable to return to duty. Many of those unable to return to their units head home with devastating injuries.

(on camera): Without the quick medical response already in place by the U.S. military, the death toll would be far higher. This landing zone at the 10th CSH in Baghdad on any given day is literally buzzing with activity.

(voice-over): All over Iraq, from Baghdad, to Ramadi, Falluja, to the Triangle of Death, these three years prove the U.S. is in the grips of a bloody fight. Of the 25 casualties brought in from the attack on 4th Infantry Division, one later succumbed to his wounds. Another soldier died at the scene of the attack. Through the day, a tense struggle to keep the death toll from growing higher. Many soldiers sent to surgery to get them stable enough to fly out to hospitals in Germany and then to the U.S.

(END VIDEOTAPE)

And, Miles, it's these very same doctors, medics and nurses that saved countless lives yesterday, ensuring more U.S. soldiers would return home alive to their families than those that died yesterday here in Iraq -- Miles.

O'BRIEN: What always amazes me, Cal, is their professionalism and the speed with which they work, how quickly these injured troops end up in Europe and really, for that matter, in the United States, with the best care there is. How quickly do they get them out of there, typically?

PERRY: It really depends on the injury, Miles. Really, as soon as they're stable enough to fly, they go to Balad, and this is a key thing. What they want to do at the CSH is triage. That is, they want to treat the most heavily wounded immediately, get to those that are less wounded later. Those that are very heavily wounded, they'll often go into surgery.

A group of soldiers from yesterday's incident did exactly that. As soon as they're stable enough to fly to Balad, they're put on a Blackhawk, flown to Balad for further surgery. And then as soon as they're stable enough to fly to the United States, they generally end up at Walter Reed Hospital where they then start their rehabilitation -- Miles.

O'BRIEN: Cal Perry in Baghdad, thank you very much.

Let's get a check of the forecast, Chad Myers at CNN Center with that.

Hello, -- Chad. C. MYERS: Good morning, Miles.

Looking at a couple of Atlantic hurricanes that are not going to hit anything, they're just basically fish storms, or as my boss is calling them now, they're just gutter balls.

Here's Tropical Storm Lane. It will be Hurricane Lane, though, later today, and it will make a run into the Baja, California area, but maybe staying in the Gulf of California here, kind of sparing Cabo San Lucas. Eight-five-mile-per-hour storm with a direct hit on Cabo, that would still do some damage, even though it's only a Category 1 storm.

(WEATHER REPORT)

Back to you.

COSTELLO: I'm not sure it makes much difference, 100, 102, what's the difference?

C. MYERS: Right, I know.

COSTELLO: Thank you, -- Chad.

C. MYERS: You're welcome, -- Carol.

COSTELLO: Still to come, free videos could soon cost some big money. Popular Web sites youtube and myspace now under attack from the world's biggest record company.

And back to work in space, astronauts stepping out of the shuttle again today to complete their power play.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

MIKE: We had to train over 900 Iraqis in combat. But we'd like to do this work with fewer American lives at risk.

Pretty much you have to drive everywhere in Iraq. We did probably several hundred convoys in these thin-skin pickup trucks. In the time I was there, we had a half dozen killed and 43 wounded. Unmanned convoys would reduce casualties entirely, but we still have a long ways to go, particularly when it comes to convoys and IED defects.

O'BRIEN (on camera): IEDs, or improvised explosive devices, have been blamed for more than 900 U.S. military deaths in Iraq. What if we could put robots in harm's way instead?

(voice-over): Scott Myers is an executive with General Dynamics, a company that specializes in unmanned warfare. SCOTT MYERS, GENERAL DYNAMICS: I believe that the way we operate right now for the military it will be completely different 15 years from now due to provided technology.

O'BRIEN: Right now the unmanned vehicle is not entirely autonomous, it uses censors, as well as commands, from a manned lead vehicle to avoid obstacles and navigate rugged terrain. But if all goes well, Myers says this could one day lead to completely unmanned convoys. But don't look for robotic soldiers any time soon.

S. MYERS: We consider these robots as really co-combatants and not that we're replacing the soldiers, but they can be more effective and do their job safely.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COSTELLO: Some of the most popular stories on CNN.com.

Pop star Madonna won't be striking a pose in a space suit any time soon. A Russian lawmaker had proposed sending the material girl on a mission as a space tourist. Other lawmakers didn't so much like the idea and rejected the proposal.

Looking to retire, how about Williamsburg, Virginia? "MONEY" magazine is out with its list of best cities. AMERICAN MORNING is doing a series on these towns all next week, so be sure to catch it.

And finally, Yahoo! Sports reports New Orleans running back Reggie Bush and his family appear to have gotten expensive gifts, money and other benefits while he was at USC. If proved, that could lead to sanctions against USC. It could also cause Bush his Heisman Trophy as the nation's best college player.

O'BRIEN: Hewlett-Packard's private investigator going to be investigated himself. That should come as no surprise if you've been following this story.

Carrie Lee has more.

Good morning, -- Carrie.

LEE: And I wonder how an investigation firm prepares for an investigation of itself.

O'BRIEN: I don't -- will they be doing some pretexting, I doubt it, right?

LEE: Exactly.

O'BRIEN: Yes.

LEE: Exactly. We're talking about the latest on Hewlett-Packard here. The Boston-area private investigation company that helped Hewlett-Packard in its spying scheme is going to be investigated probably early next week. This according to California's attorney general which has been following this story.

Now it's not specifically clear whether anything illegal happened here. California law does not specifically ban pretexting. But still, the California attorney general says he already has enough information against identity theft and computer intrusion that there could very likely be criminal charges here. And of course the background story, HP revealed that it did hire this outside firm to impersonate some HP employees, as well as journalists, and get home phone records for some of those folks.

O'BRIEN: Well, so, but it's unclear if they violated law, even though they used Social Security numbers, pretended to be people they weren't?

LEE: Right. There's no law across the board against pretexting. And you can imagine there might be some legitimate uses for this, if you're trying to investigate say terrorists or something like that. And so...

O'BRIEN: Yes, I know, if you're law enforcement, we understand that.

LEE: Yes, yes.

O'BRIEN: Right.

LEE: So they have to look at this case specifically.

O'BRIEN: Yes.

LEE: But probably it's going to come down that way,...

O'BRIEN: Right.

LEE: ... it's just not 100 percent clear at this point.

Also, ConAgra, the big agricultural company, cutting 400 jobs, also closing 5 plants, this in an attempt to save $50 million a year. This is part of a plan that was announced earlier this year. ConAgra really over the past decade has changed from a big commodities agriculture company to more of a packaged food company. So now they're going to focus on some of their brands like Egg Beaters, Healthy Choice and Chef Boyardee. So that's the latest on ConAgra.

Quick market check. Yesterday we ended the session mixed, Dow up a -- down a little bit, rather, Nasdaq up by just one point. And this morning, it looks like we could see some buying at the opening bell. Federal Reserve meeting next Wednesday, we'll get the latest on interest rates. And we'll get a look at consumer prices early this morning and that could very well influence this Friday morning session.

O'BRIEN: Thanks, -- Carrie.

LEE: OK.

O'BRIEN: Have a good weekend.

LEE: You too.

O'BRIEN: All right.

The morning's top stories are straight ahead, including a big announcement from Ford just minutes away, the troubled automaker shedding 75,000 workers.

Also, Popeye will be awfully upset about this, but listen to this warning, stay away from your spinach! A health alert ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

MILES O'BRIEN, CNN ANCHOR: Happening this morning, Congressman Bob Ney expected to plead guilty to corruption charges. He is linked to former lobbyist Jack Abramoff, who was convicted of bribery. The Ohio Republican would be the first lawmaker to do so.

In Yemen overnight, authorities say they foiled two attempted attacks on oil facilities. Officials say suicide bombers tried to blow up a refinery and a storage center. The attackers were killed.

Muslim leaders calling on Pope Benedict to apologize for some harsh comments about Islam. Earlier this week in Germany, Benedict quoted a 14th century Byzantine emperor, who describing some of Mohammed's teachings as evil as inhuman. The Vatican says the pope meant no offense.

Good morning to you. I'm Miles O'Brien.

CAROL COSTLLO, CNN ANCHOR: And I'm Carol Costello, in for Soledad.

O'BRIEN: This morning a health alert for you. The government says don't eat that spinach. Fresh, bagged spinach apparently linked to an outbreak of the E. coli bacteria, causing an intestinal illness. About 50 are been made ill so far in the United States. One person is dead.

CNN's Brianna Keilar joining us from Washington with more.

Brianna, good morning.

BRIANNA KEILAR, CNN CORRESPONDENT: Good morning, Miles.

And because health officials continue to see these cases of E. coli, and because they haven't been able to pinpoint exactly where this spinach is coming from, they're telling people, whatever brand they have, just throw it out.

(BEGIN VIDEOTAPE)

KEILAR: About 50 cases of E. coli infection, one ending in death, spread across eight states, including Connecticut, Idaho, Indiana, Michigan, Oregon, New Mexico, Utah, and Wisconsin. Food and Drug Administration officials say they have a significant E. coli outbreak on their hands. So far, it appears fresh bagged spinach is the culprit.

BEVAN BAKER, MILWAUKEE COMM. OF HEALTH: No specific lot or brand of product has been identified at this time. Based on this information, the FDA currently advises consumers not to eat bagged, pressed spinach at this time.

KEILAR: That means all fresh, bagged spinach. And the FDA does not advise cooking the spinach in order to kill the bacteria.

Symptoms of E. coli infection include diarrhea and vomiting, and more severe complications like anemia, kidney failure and hemorrhaging. Children and the elderly are particularly susceptible.

In Wisconsin, where nearly half of the cases have been found, health officials are urging people with E. coli symptoms to see a doctor.

BAKER: Persons who have consumed fresh, bagged spinach and experience illness should seek medical care from their health provider.

(END VIDEOTAPE)

KEILAR: And health officials say that these E. coli cases have been increasing by the day, and some suspect this outbreak could get worse before it's contained -- Miles.

O'BRIEN: Brianna Keilar in Washington.

Thank you very much -- Carol.

COSTELLO: Money trouble. Ford is expected to offer buyouts to 75,000 union workers today. The UAW says workers with 30 years at the company will be offered $35,000. It says no worker will be "involuntarily separated." In other words, forced out. "The Detroit News" reports the number two U.S. automaker could lose $9 billion this year.

(BEGIN VIDEO CLIP)

LARRY DANIEL, FORD EMPLOYEE: Well, everyone's up in arms, up in the air. We don't know what's really going to happen in the future.

Ford's trying -- trying to get things back under control, which you've got to give them credit for that. I'm sure they're going to try to take care of everybody the best they can. And all we can do is just hope, hope for the best and just wait it out and see what happens.

(END VIDEO CLIP)

COSTELLO: Ford already plans to cut 30,000 jobs and close 14 plants. It's suffering from weak sales and large inventories of key products like pickup trucks.

O'BRIEN: Another day in Baghdad, another sign the sectarian violence is not letting up. Authorities finding 50 bodies all around the city. Many still tied up, many showing signs of torture.

CNN's Cal Perry joining us live from Baghdad with more -- Cal.

CAL PERRY, CNN BAGHDAD BUREAU CHIEF: Hello. Good morning to you, Miles.

In the past 72 hours, Baghdad police telling CNN over 110 bodies found strewn across the capital. This is a very disturbing trend.

We heard from the government that last month 1,500 bodies were found strewn across the capital. As you said, all of them showing the telltale signs of sectarian violence.

Insurgent attacks also claiming their fair share of lives. The U.S. military has lost four U.S. soldiers in the past 24 hours, two killed in a very vicious suicide truck bomb attack on what the U.S. calls a fixed position in western Baghdad. In a separate incident yesterday, late yesterday, a U.S. soldier died in a roadside bomb. And this morning, in the Al Anbar province in the city of Falluja, a U.S. Marine died during combat operations -- Miles.

O'BRIEN: Cal Perry in Baghdad.

Thank you very much -- Carol.

COSTELLO: Happening "In America," two 17-year-old boys in jail this morning in Wisconsin after police were told they wanted to blow up their school. Police raided their homes and this is what they found, sawed-off shotguns, pistols, ammunition, several bombs, camouflage clothing, helmets, and gas masks.

Today the government is looking over an application from oil giant BP. It asks to resume production on the eastern half of the nation's largest oilfield in Alaska so it can test the pipeline. It was closed last month because of leaks and corrosion.

Philadelphia is now one of a growing number of cities in America with an indoor smoking ban. The mayor signed the law on Thursday. It affects restaurants and most bars. The ban expected to take effect in January.

If you live in California, get ready to put your cell phones down, at least while you're driving. Governor Arnold Schwarzenegger says he will sign a bill today that stops drivers from using cell phones while they drive. California drivers will face a $20 fine unless they're using a hands-free device.

And take a look at this big boy. He was born in Connecticut on Tuesday, weighing a whopping 14 pounds, 13 ounces. She had a Caesarian, never fear.

O'BRIEN: Wow. COSTELLO: Good gosh!

One for the record books, as a matter of fact, at the hospital where he was born. His mom says she is happy to have given birth and that her little boy is already wearing clothes meant for a 6-month- old.

Oh man, that mother deserves a big old fat pair of diamond earrings -- Chad.

CHAD MYERS, CNN METEOROLOGIST: No kidding. He really came out about a 6-month-old, really. So -- so he'll be...

COSTELLO: He's talking already.

MYERS: He's getting his dorm room next week.

Good morning.

(WEATHER REPORT)

O'BRIEN: All right. Let's go to space, shall we?

Two hundred miles above us, 17,500 miles an hour, another day outside the International Space Station, space shuttle Atlantis. You're looking at what Joe Tanner is seeing right now. He's the veteran spacewalker back out there. And across the way here, those are the hands of his spacewalking cohort Heidi Marie Stefanyshyn- Piper.

And what they're doing right now -- I want you to take note of this. This is very interesting.

You see these little pins and all that, and there's a little wire attached? That's the tethering mechanisms which are a part of this whole routine.

Remember, they lost a couple of bolts through the course of this mission. And everything they do, they try to tether things so that they don't lose things and create other pieces of space junk, which might one day be a hazard.

Here's why they're out today. We've been talking about these solar arrays. You saw them deploy yesterday. They were beautiful. Here's when they came out of the hatch about 38 minutes ago.

That's Heidi Pier as she came out, I believe. And you can tell because she has no stripes on her suit. See, there's just no stripes there.

And, in any case, the solar arrays are working, but solar arrays, in addition to creating electricity, create heat. And so they have to deploy today the radiator system which sheds that heat off, 44 feet in length. And they're taking off all the launch covers and protective stuff that goes along with that.

So we're watching that. That's just the early stage of that spacewalk. We'll keep you posted on that.

Take a look at these really cool pictures they released yesterday. This is from the solid rocket booster. The left one looking down on the space shuttle as it launches, and you can -- you have a great view of the underside of the space shuttle right there.

This is not -- you know, it's a cool shot, but it's more for the engineers so they can determine if any debris strikes that heat shield. Post-Columbia, these cameras and were added on, in addition to several other cameras, to give them all kinds of views. But look how the launch pad 39-B just becomes a dot in very short order.

Now, take a look at what happens at about two minutes after launch. This is solid rocket booster separation. And watch as it spins around.

You're on the solid rocket booster now. Imagine you're floating around, and there's the shuttle right there. Did you see it? It looked like a star.

All right. One more time. It's going to come around one more time.

You're still spinning around. Probably should have given the folks out there some Dramamine this morning. But in any case, these solid rocket boosters are recovered in the ocean.

They have parachutes on them. And you can actually -- I spent yesterday just -- there's the shuttle again -- I spent yesterday watching as -- look, you can see it coming down to the ocean, dropping a few pieces as it goes, and three, two, one...

COSTELLO: Wow!

O'BRIEN: ... splash down. And then, you know, next thing you know, you're pretty much underwater. There you go.

COSTELLO: You didn't watch that for hours, did you?

O'BRIEN: Yes, I did, over and over and over again.

COSTELLO: Oh, jeez.

O'BRIEN: It's just too, too fascinating for me. No sound, just watching it, going, "Wow! Wouldn't that be cool to be on that thing?"

COSTELLO: Oh, there's something wonderful and wrong about that at same time.

O'BRIEN: Yes, it's messed up.

COSTELLO: I know. It really is.

O'BRIEN: It's messed up. At least I'm out with it.

COSTELLO: It's true. Still to come, the scandal that just will not die. Richard Armitage admits that he outed Valerie Plame, but now he's being taken to task about just how he leaked that information.

And look. Look, there he is, Japan's royal bundle of joy. He seems pretty quiet now.

O'BRIEN: Wait a minute. That's Suri. Oh no.

COSTELLO: You know, it oddly does look like Suri.

O'BRIEN: Yes, it does. The same hair.

COSTELLO: Yes. We're going to tell you more about this little baby boy that's really not Suri, we promise, just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: The two men at the center of the CIA leak case are finally talking about the conversation that started it all. The trouble is, they're telling two different stories.

AMERICAN MORNING'S Bob Franken is live in Washington.

If nothing else, this provides constant gainful employment for the likes of you. That's good.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, that's right. That's right.

O'BRIEN: Yes.

FRANKEN: It's the Bob Franken Preservation Act.

(LAUGHTER)

O'BRIEN: Whatever works.

FRANKEN: Whatever works.

And, you know, we would have thought that once Richard Armitage came forward, we would have thought that that would have possibly put an end to it all. Silly us.

(BEGIN VIDEOTAPE)

FRANKEN (voice over): Robert Novak is proving one of the immutable laws of Washington: a controversy is never really over. Now we know that former deputy secretary of state Richard Armitage was the first person to leak Valerie Plame's identity to Novak. We know because he says so, that he mentioned her connection to the CIA in an off-hand manner, saying he "... thought she worked there." But Novak now says the contention by Armitage that it was a passing reference that propelled the writer to identify Valerie Plame in July, 2003, wasn't so off-hand after all. Novak writes, "... he identified to me the CIA division where Ms. Wilson worked... Armitage did not slip me this information as idle chitchat, as he now suggests. He made it clear he considered it especially suited for my column."

The entire controversy began after Plame's husband, Joseph Wilson, had raised loud challenges to Bush administration claims Saddam Hussein was getting uranium from Africa.

VALERIE PLAME, FMR. CIA AGENT: I and my former CIA colleagues...

FRANKEN: Novak's column set off a multimillion-dollar special counsel's investigation into whether the law had been broken by a White House trying to get retribution. To break the law, Armitage would have had to know he was identifying a secret operative, but when he went to special prosecutor Patrick Fitzgerald in October of 2003 to say he realized he had been Novak's source, Fitzgerald decided not to prosecute.

Ken Duberstein, President Reagan's White House chief of staff and a close friend of Richard Armitage, tells CNN the Armitage version of events "is exactly what he told me in October of 2003."

Armitage has declined a CNN interview, but he told a friend, "If everybody had cooperated like I cooperated, this would have been over long ago."

As for Novak, he insists that Armitage obscured what he really did.

(END VIDEOTAPE)

FRANKEN: So, let's see now. Plame and Wilson have added Armitage to their lawsuit. Fitzgerald says his investigation goes on. And Miles, the beat goes on.

O'BRIEN: It just ain't over. Unbelievable.

(LAUGHTER)

FRANKEN: That's right. This is a Yogi Berra story.

O'BRIEN: It sure is. All right, Bob Franken, thanks for the update -- Carol.

COSTELLO: It gets more like a soap opera, yes.

Still to come on AMERICAN MORNING, is the day -- is today the day Fidel Castro speaks in public for the first time since his surgery?

And the first look at Japan's little prince. A babe in his mother's arms. Now some day he'll be an emperor.

(COMMERCIAL BREAK)

COSTELLO: It's 6:50 Eastern Time. Here's a look at what CNN correspondents around the world are working on today.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: I'm Gary Tuchman in Havana, Cuba.

This is the most important day of the five-day Summit of Nonaligned Nations. Heads of state will speak today, including states that are quite antagonistic towards the United States. Those speakers include Venezuela's Chavez and Iran's Ahmadinejad.

Also speaking, Cuba. But will it be Fidel Castro? That remains to be seen. He's been sick since July 31st, hasn't been seen in public. Authorities here say he will participate. Whether it will be this big speech remains to be seen.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN CORRESPONDENT: I'm Atika Shubert in Tokyo, Japan.

The country just got its first glimpse at the new royal heir. Prince Hisahito made his first public appearance in his mother's arms just nine days after he was born. Princess Kiko and Prince Akishino are the proud parents. They named their son Hisahito, meaning eternal serenity of the highest moral standard.

Now, this baby boy will be closely watched, as he is third in line to the throne and could one day become emperor of Japan.

(END VIDEOTAPE)

COSTELLO: For more of these or any of our top stories, head to our Web site, CNN.com.

O'BRIEN: The royal hair, we might call that one.

Andy Serwer is here with a look at what's going on in business.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": I am, Miles.

Why CBS says downloads should be free.

A record company takes on YouTube.

And plus, a major CD-DVD bootlegger is busted.

We'll tell you about that one.

O'BRIEN: Also ahead in the program, finding that hidden spark of genius in young people. Dr. Sanjay Gupta talks with a young author who was on the best-seller list at the age of 15. OK, that could be genius.

COSTELLO: Do you feel inadequate now?

O'BRIEN: I do. I do.

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Well, the consumer has spoken. The consumer prefers free, as opposed to paying. Imagine that!

SERWER: That's hard to believe.

O'BRIEN: How -- that's hard to believe.

Andy Serwer, you're here to tell us that?

SERWER: I am. That and other scintillating stuff here this morning, Miles.

O'BRIEN: Scintillating.

SERWER: This is a grand experiment that turned out to be not so grand. I guess that's one way to put it.

CBS and Comcast had been selling old TV shows, downloads for 99 cents for eight months, and now they decided, you know what? This model simply isn't working. Now you'll be able to buy these shows -- or get these shows, I should say, for free.

They're going to be advertising-sponsored instead. How many times have we seen this? How does the business model work? Ad- sponsored or subscription or pay as you play.

This looks like a watershed move, right? Now all TV shows are going to be offered for free, but not so fast, because, you know, iTunes is still selling them and doing a very brisk business there. Forty-five million TV shows they've sold at their iTunes store.

And I think this has to do with, where does the show go? Does it sit in your settop box? Is it in the server?

O'BRIEN: Right.

SERWER: Can you bring it on your wonderful iPod that you can bring on the airplane? Can your have it on your computer and your TV? So it's not a done deal yet.

O'BRIEN: So, in other words, the issue with this was you pay to download it, but it was stuck on your computer. You couldn't put it in your iTunes, could you?

SERWER: No, you could not put it in your -- you couldn't put it in your iPod. This is on your TV.

O'BRIEN: Right.

SERWER: You probably couldn't (ph) put it on your computer.

O'BRIEN: I see. Got you.

SERWER: You know, and then all this stuff when it gets -- the problem is, when it gets complicated, people just give up.

O'BRIEN: You're out.

SERWER: And that's what so the beauty of the iPod and the iTunes. It's very easy to use.

O'BRIEN: Yes. But that last 10-feet issue, though, still getting it from place to place, from computer to TV and vice versa...

SERWER: Yes.

O'BRIEN: Anyway -- all right.

SERWER: Difficult stuff.

Want to move on here and tell you about Universal Music. The world's largest record company says that YouTube and MySpace, those two so popular Web sites, are violating copyright laws. And if they don't do something about, they're going to get sued.

Universal...

O'BRIEN: You knew this was coming.

SERWER: Yes. And, you know, if you think about, now, YouTube, you understand, they've got all kinds of stuff up there, and a lot of it is just pirated and stolen. In fact, some of it they have been removing. But MySpace, the way that would work is, people would just have things at their -- hey, check out this video, check out this song.

They say that the MySpace negotiations are going well. YouTube not going so well.

And then finally, tell you about a bootleg bust here in New York City yesterday. A raid in a garage and an office in Manhattan. The garage was up in the Bronx.

Supposedly, the second largest bootlegging operation, both DVDs and CDs, in the United States. The biggest one was down in Atlanta -- 208 CD burners, DVD burners, 40,000 discs were found. And this operation was capable of making 6,000 copies an hour. So that's pretty significant.

COSTELLO: Which always seems strange to me, because nobody's buying new CDs, or, you know, legitimate CDs these days. They're still bootlegging them.

SERWER: Yes. But if you see them on the street, you know, the people are paying three bucks.

COSTELLO: For 50 cents.

SERWER: Right.

O'BRIEN: So those guys on the subway that are trying to sell me CDs, I shouldn't do that, right?

SERWER: No.

O'BRIEN: OK. Thank you.

SERWER: No. That's not a good idea.

O'BRIEN: Thank you, Andy.

COSTELLO: Unless no one's looking. Yes.

Time for a check of the forecast . Let's head to Atlanta and Chad.

MYERS: Good morning, Carol.

(WEATHER REPORT)

MYERS: The next hour of AMERICAN MORNING starts right now.

O'BRIEN: Spinach, it's supposed to be good for you. But this morning there are fears it could kill you. A nationwide food warning you need to know about.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Well, everyone is up in arms. It's up in the air. We don't know what's really going to happen in the future.

(END VIDEO CLIP)

COSTELLO: A dramatic announcement from Ford just moments away. Seventy-five thousand workers could be impacted.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: I'm Dana Bash on Capitol Hill, where a policy the president calls critical to the war on terror is under attack by senior members of his own party.

More on that coming up.

COSTELLO: Also, an exclusive look inside an American military hospital in Iraq in the moments after a suicide bomb attack.

O'BRIEN: And what does a really smart kid do when he's got too much time on his hands? The answer in the conclusion to our "Genius" series ahead on this AMERICAN MORNING.

I'm dying to know that.

COSTELLO: Yes. I think it involves a couple of million dollars that he made. O'BRIEN: Maybe so. Yes.

COSTELLO: Yes.

O'BRIEN: Good morning to you. I'm Miles O'Brien.

COSTELLO: And I'm Carol Costello, in for Soledad.

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